What have we learnt from the Woodford fiasco - and will anything change?

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 5 July 2019

⏱️ 37 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

t’s been more than a month since Britain’s most high profile fund manager Neil Woodford was embarrassingly forced to close the doors to his flagship fund.

Since then, investors have been unable to sell out and this week - after the first 28 days of closure rolled round - Woodford Equity Income locked savers in for another four weeks.

Over the past month, Woodford, his business, its associates and the entire fund management industry have been thrown under the spotlight, but ultimately, will all this fuss and fiasco make any difference?

On this week’s podcast, Simon Lambert, Georgie Frost and Alex Sebastian look at what next for the investment world, what has changed and whether once the noise dies down it will simply be back to business as usual.

Can we learn anything from the Woodford mess?

Are there other investments we should be looking at?

Is this just another reason to ditch active management for passive funds?

Will we still continue to love our star managers?

All this and more comes under the microscope, as the team look to Woodford and beyond and consider the business of making money from making other people’s money.

Transcript

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0:00.0	Welcome to This Is Money in partnership with NS&I. I'm Georgie Frost and joining editor Simon Lambert and I today is news editor Alex Sebastian.
0:09.7	And today, Woodford, one month on. What went wrong for the UK's most high profile fund manager?
0:16.4	What's been the fallout? What could be the reputational damage to the whole fund industry?
0:21.0	And why should we all care? But it's an ill wind and all that, so will and our lessons being learnt.
0:27.8	Don't forget you stay up to date. With all the latest breaking money news, just go to this ismoney.co.uk.
0:32.1	Or download the app.
0:35.1	This is Money. Brought to you in partnership with NS and I, giving your little ones a head start
0:40.7	with our junior ISA.
0:42.8	We won't go into too much detail if that's all right, Simon, about what went wrong, as I think
0:46.9	we can all probably agree.
0:48.1	It's been done a lot, quite frankly.
0:50.6	And if you want to know, there are podcast passed by our good selves on this subject.
0:55.4	But for the sake of context, it's probably worth you reminding us of the situation.
1:00.7	Who's Neil Woodford?
1:02.1	What's got all the financial press a flutter as it were?
1:06.3	Bring us to the point at which the proverbial hit the fan.
1:10.7	Let's put it that way. So take us up to a month
1:12.7	ago. Neil Woodford is the closest thing that Britain has to a household name in the investment
1:19.5	world. He is a famous fund manager who made a lot of money for his investors over many years
1:26.4	at a company called Investco Perpetual.
1:28.6	He famously made some good calls where he dodged the dot-com boom, which meant that he dodged
1:35.6	the bust. He also made some good calls before the financial crisis that meant he didn't
	...

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