Can Neil Woodford turn around his fund's redemptions mishap?

Punters expect instant liquidity, if a fund can’t fulfil that requirement it’s in extreme territory

Is this the end of Neil Woodford’s career as the UK’s most famous, and most celebrated, fund manager? It could be that serious. Woodford has recovered from setbacks in the past, but they have been of the conventional stock-picking variety – a bad run in the markets. Blocking redemptions from a flagship fund is very different.

Punters expect instant liquidity, meaning the right to turn their investments into cash at the drop of hat, more or less. If a manager of a high-profile retail fund can’t fulfil that basic requirement, it is in extreme territory. Commercial property funds took the same route in the credit-crunch era, but that was a case of an entire asset class being affected by a lurch in the market. This problem has afflicted Woodford alone.

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from Property | The Guardian http://bit.ly/2Z6f3LE
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