FCA monitors Woodford-exposed multi-manager funds

Investigation ongoing

James Baxter-Derrington
Niel Woodford's Equity Income fund was suspended in June

Niel Woodford's Equity Income fund was suspended in June

The Financial Conduct Authority (FCA) is currently investigating funds worth more than £15bn that have holdings in the collapsed Woodford Equity Income fund (WEIF) as it seeks to prevent a liquidity crisis.

The FCA is closely monitoring multi-manager funds that have holdings in Woodford Equity Income fund (WEIF) over contagion fears for investors. At least 15 UK retail funds are invested in WEIF, including multiple multi-manager funds from Hargreaves Lansdown (HL) and Quilter Investors, according to FTfm analysis of Morningstar data. HL's six funds exposed to WEIF total £6.1bn in assets, three of which hold Woodford's failed vehicle in their top ten holdings. The £2.6bn Income & Growth fund counts WEIF as 11% of its total holdings. Quilter, which dropped a segregated mandate managed b...

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