Despite Woodford, It's a Good Time to be an Investor

The Woodford Equity Income saga may have put many people off, but it's a good time to be an investor, says Morningstar head of manager research Jonathan Miller 

Jonathan Miller 17 June, 2019 | 9:58AM

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The liquidity profile of the Woodford Equity Income fund was pushed to its limits and the issues around this have been well-documented. It's clearly bad news for unit holders, even though circumstances were such that the suspension was probably in their best interests.

As a result of the furore around the fund's suspension, we are likely to a see post-mortem on the use of unquoteds in an open-ended fund structure and the regulator's role in the debacle will be closely examined.

But as well as all of the legitimate questions which have been asked over recent days, inevitably, it feels as though there has been a relentless desire to hone in on the fall from grace of a star manager. When an investment story appears on the front page of the BBC website, you realise just how mainstream this whole episode has become.

The issues clearly warrant airtime but in the eye of the storm, I believe the media frenzy will have dented the psyche of Joe Public on how they use funds to invest for their future. And that is truly concerning.

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About Author

Jonathan Miller  is Director of Manager Research, Morningstar UK

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