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| Stockpicker Neil Woodford apologises for suspending fund | |
| (about 1 hour later) | |
| One of the UK's best known stockpickers has said he is "extremely sorry" after suspending trading in his largest fund. | |
| Neil Woodford stopped money going in or out of his Woodford Equity Income Fund on Tuesday after increasing numbers of investors asked for their money back. | Neil Woodford stopped money going in or out of his Woodford Equity Income Fund on Tuesday after increasing numbers of investors asked for their money back. |
| The move was "necessary to protect investors' interests", he said. | The move was "necessary to protect investors' interests", he said. |
| A stockpicker - or fund manager - analyses the potential of different stocks to try to decide whether or not they will make a good investment. | A stockpicker - or fund manager - analyses the potential of different stocks to try to decide whether or not they will make a good investment. |
| Investors had withdrawn about £560m from the fund over the past four weeks. | Investors had withdrawn about £560m from the fund over the past four weeks. |
| "As difficult a decision as this is, and clearly frustrating for you, our investors, we felt this was necessary to protect your interests," he said. | "As difficult a decision as this is, and clearly frustrating for you, our investors, we felt this was necessary to protect your interests," he said. |
| He said that due to the rising number of investors withdrawing funds, the stock market was "in a way anticipating the fact that we would have to be sellers of stocks to meet those redemptions." | He said that due to the rising number of investors withdrawing funds, the stock market was "in a way anticipating the fact that we would have to be sellers of stocks to meet those redemptions." |
| Therefore, the prices the firm could get for those stocks "would be disadvantageous for our investors". | Therefore, the prices the firm could get for those stocks "would be disadvantageous for our investors". |
| "I'm extremely sorry that we've had to take this decision, we will keep our investors informed. We will use this time to reposition the fund." | "I'm extremely sorry that we've had to take this decision, we will keep our investors informed. We will use this time to reposition the fund." |
| He said the fund needed time to reduce its exposure to illiquid and unquoted shares "to zero". | He said the fund needed time to reduce its exposure to illiquid and unquoted shares "to zero". |
| Illiquid stocks can't be easily sold quickly, and investors may make a loss on them, while unquoted shares are those in private, non-listed, companies. | Illiquid stocks can't be easily sold quickly, and investors may make a loss on them, while unquoted shares are those in private, non-listed, companies. |
| The decision to suspend the fund was agreed with the fund's administrator, Link, a spokesman said. | The decision to suspend the fund was agreed with the fund's administrator, Link, a spokesman said. |
| Kent County Council had wanted to withdraw its £263m investment, but was unable to do so before trading halted. | Kent County Council had wanted to withdraw its £263m investment, but was unable to do so before trading halted. |
| Paul Carter, leader of Kent County Council, told the BBC: "The money invested in Woodford represents about 4% of our total pot of £6.5bn of money invested. Hopefully we will get our money out with no reduction. But that remains to be seen." | Paul Carter, leader of Kent County Council, told the BBC: "The money invested in Woodford represents about 4% of our total pot of £6.5bn of money invested. Hopefully we will get our money out with no reduction. But that remains to be seen." |
| Why has Mr Woodford taken this action? | Why has Mr Woodford taken this action? |
| Stephen Clapham of analysts Behind the Balance Sheet said Mr Woodford had "had a very poor performance in the fund" and so people had been asking for their money back. | Stephen Clapham of analysts Behind the Balance Sheet said Mr Woodford had "had a very poor performance in the fund" and so people had been asking for their money back. |
| "This has been an accelerating thing, it's like a snowball going downhill, and I guess he's just got to the point where his fund has shrunk in size, and the illiquid - and particularly the unquoted part of the fund - has increased as a percentage of the total asset, so he's just had to do something." | "This has been an accelerating thing, it's like a snowball going downhill, and I guess he's just got to the point where his fund has shrunk in size, and the illiquid - and particularly the unquoted part of the fund - has increased as a percentage of the total asset, so he's just had to do something." |
| Mr Clapham added he would be "very surprised" if most people who had invested in the fund knew there was a risk that at some point they would not have been able to take their money out. | Mr Clapham added he would be "very surprised" if most people who had invested in the fund knew there was a risk that at some point they would not have been able to take their money out. |
| "It's actually not that uncommon," he said, adding that after the Brexit referendum some property funds had taken similar action. | "It's actually not that uncommon," he said, adding that after the Brexit referendum some property funds had taken similar action. |
| Mr Woodford made the apology in a video published on Youtube. | Mr Woodford made the apology in a video published on Youtube. |
| He added he would be "doing more to answer any further questions over the coming days and weeks." | He added he would be "doing more to answer any further questions over the coming days and weeks." |
| Who is Neil Woodford? | Who is Neil Woodford? |
| Mr Woodford started his own fund five years ago, with its headquarters in Oxford. | Mr Woodford started his own fund five years ago, with its headquarters in Oxford. |
| In its first year, it gave investors a return of 18% on their money, compared with an average rise of only 2% on the London Stock Exchange at the time. | In its first year, it gave investors a return of 18% on their money, compared with an average rise of only 2% on the London Stock Exchange at the time. |
| However, after the figures were released he warned: "It's far too early to conclude that the fund's strategy has worked." | However, after the figures were released he warned: "It's far too early to conclude that the fund's strategy has worked." |
| Before that, the 59-year-old had worked as part of the UK equities team at investment managers Invesco Perpetual for more than 26 years. | Before that, the 59-year-old had worked as part of the UK equities team at investment managers Invesco Perpetual for more than 26 years. |
| He was appointed a CBE for services to the economy in 2013. | He was appointed a CBE for services to the economy in 2013. |
| Are you a Woodford Equity Income fund investor? What are your thoughts? Email haveyoursay@bbc.co.uk | Are you a Woodford Equity Income fund investor? What are your thoughts? Email haveyoursay@bbc.co.uk |
| Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: | Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: |
| Or use the form below: | Or use the form below: |