Trustnet Magazine 80 January 2022 | Page 70

Performance of and index sin
YOUR PORTFOLIO Liqu

The baby in the bathwater

Liquidity has remained front of mind for fund selectors since the collapse of Woodford Equity Income in 2019 . What was once a £ 10.7bn fund suffered a spectacular fall from grace as poor liquidity meant it struggled to meet redemptions when manager Neil Woodford ’ s disappointing performance caused investors to pull their money . Trading was suspended in June 2019 and by October of the same year the decision was taken to wind up the fund – a process that remains ongoing . Perhaps one of the biggest lessons from the debacle was that no matter how successful a fund manager is , he or she is not invincible . This appears to have informed the thinking of wealth management companies , ratings agencies and investment platforms alike : since the Woodford debacle , they have been quick to drop funds from their buy-lists or place them under review due to concerns about liquidity and fund size . However , it remains to be seen whether these concerns are justified . Back in July 2019 , investment platform Charles Stanley Direct
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Source : FE Analytics

Performance of and index sin

Fundsmith Equity ( 40.4 %)
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