Investment - Articles - Neil Woodford and illiquid assets


Celene Lee, Principal and Senior Investment Consultant at pensions and employee benefits consulting firm, Buck, comments:

 “The decision by Kent County Council pension fund to withdraw its £236m investment mandate from the Woodford Equity Income Fund has had damaging consequences, not just for Neil Woodford, but for the fund management industry as a whole. This week’s developments highlight the importance of having a regulatory portfolio cap on investing in illiquid assets. However, it’s important to realise that investing in these assets is not, and should not, be considered as unnecessarily risky.

 Illiquid assets can help investors meet their long-term investment strategy, and also provide potentially higher returns and diversification of their investment portfolio. Clearly, getting the balance right between illiquid and easy-to-sell assets is vital, but for investors who fully understand their investment objectives and appreciate the market and the risks involved, illiquidity should not be a dirty word.”
  

Back to Index


Similar News to this Story

Police Mutual to become part of Royal London
Royal London announces Police Mutual will become part of its company, subject to regulatory approval. A vote was put to Police Mutual’s member represe
Aon advises Unomedical Pension on buyout with Aviva
Aon has advised the Unomedical Pension Plan on a £10 million buyout with Aviva. Aon worked closely with Capital Cranfield, the plan’s sole trustee, to
Covid19 reveals lack of financial resilience
A new report by Columbia Threadneedle Investments investigates the financial attitudes of different generations and how they impact their work, relati

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.