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Was it HL s fault that investors lost their money in the Woodford collapse?

When Neil Woodford’s LF Woodford Equity Income fund collapsed in the summer of 2019, accusatory fingers were pointed in different directions. Woodford was blamed, of course, for an “over-reliance on large, illiquid assets”.

City watchdog blasted over Woodford probe

Woodford received £975,000 payout months before fund collapse

As his firm swings to £6m loss in what looks set to be its final full-year accounts Neil Woodford and his right-hand man Craig Newman pocketed a £1.5m ($2m, €1.7m) payout in the months before his eponymous equity income fund shuttered and sparked the collapse of his funds empire.   Latest filings from Companies House show Woodford and his business partner helped themselves to one last interim dividend for the period covering April 2019 to March 2020 as their venture Woodford Investment Management swung to a loss and was forced to close.  The interim dividends were paid out to Woodford Capital, an unlimited company which counts Woodford and Newman as its sole directors. Woodford controls a 65% stake in the business, meaning he banked £975,000 of the total sum, while Woodford IM chief executive Newman bagged £525,000. 

Woodford and right-hand man scooped up £1 5m payout months before fund implosion

Woodford and right-hand man scooped up £1 5m payout months before fund implosion
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