Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  M&G plc    MNG   GB00BKFB1C65

M&G PLC

(MNG)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector news

Investors in collapsed Woodford fund to get half their cash in January

share with twitter share with LinkedIn share with facebook
share via e-mail
12/13/2019 | 09:35am EDT
FILE PHOTO: British fund manager Neil Woodford is seen in this handout image

Hundreds of thousands of investors trapped in the former flagship fund of veteran money manager Neil Woodford should get just over half their money back in January, but may have to wait some time to recover more from the collapsed business.

Woodford, who made his name as a contrarian investor over a 30-plus-year career, has come under fire from regulators and investors for the 3 billion pound ($3.85 billion) LF Woodford Equity Income Fund's heavy exposure to unlisted, hard-to-sell stocks.

Trading in the UK-focused fund was initially suspended in June after it ran out of cash to pay back investors seeking to leave after a period of underperformance. Administrator Link Fund Solutions said it would wind up the fund in October, which prompted Woodford to close his firm.

Link said in a letter to investors on Friday that Britain's regulator had approved its plan to wind up the fund, with a final valuation of assets set to take place on Jan. 17. The first payout will be made on or around Jan. 20, it said, with the fund's name changing to LF Equity Income Fund.

BlackRock, which is selling the more liquid assets on behalf of Link, has sold 56% of the fund, totalling 1.65 billion pounds ($2.12 billion), Link said. BlackRock has reinvested the funds in assets including stock index and money market instruments.

However, Link added that PJT Partners, which is selling the less liquid assets, was still exploring opportunities to sell them.

"Link’s letter indicates that investors are likely to be waiting for some time before they get all their money back," said Ryan Hughes, head of active portfolios at investment platform AJ Bell. The current valuation of 2.95 billion pounds represents a 19% loss for investors since the fund's suspension, he added.

Woodford investors may lose a third of their money as a result of the winding up of the fund, according to the firm's own estimates.

The quick sale of some of the assets means the fund has been unable to benefit from Friday's post-UK election bounce in a number of shares previously held in size by the fund, which would be "galling" for investors, said Adrian Lowcock, head of personal investing at Willis Owen.

They include housebuilders Barratt and Taylor Wimpey, both of which saw double-digit percentage gains on Friday following a strong majority for the ruling Conservatives in Thursday's British elections.

Another former Woodford fund, Woodford Patient Capital Trust has been renamed Schroder UK Public Private Trust to reflect its change of manager, it said on Friday.

Following the Woodford suspension and the freezing of property funds after the June 2016 Brexit referendum, the Bank of England on Monday is set to update its rules governing withdrawals from funds holding illiquid assets.

M&G froze its property fund again last week.

(Reporting by Simon Jessop and Carolyn Cohn; Editing by Mark Potter)

By Carolyn Cohn and Simon Jessop

Stocks mentioned in the article
ChangeLast1st jan.
BARRATT DEVELOPMENTS PLC 5.16% 471.2 Delayed Quote.-36.89%
M&G PLC 0.00% 130.05 Delayed Quote.-45.17%
SCHRODER UK PUBLIC PRIVATE TRUST PLC 10.85% 24 Delayed Quote.-34.81%
TAYLOR WIMPEY PLC 9.09% 127.2 Delayed Quote.-34.23%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on M&G PLC
04/03European insurer shares fall as row breaks out over dividends
RE
04/03M&G : Director/PDMR Shareholding
PU
03/24M&G : Temporary suspension of M&G Property Portfolio remains in place - update o..
PU
03/19UK fund suspensions raise questions about daily cash calls - watchdog
RE
03/18AEGON N : UK industry body says property funds may need to suspend themselves
RE
03/18Kames, Janus Henderson suspend UK property funds on coronavirus turbulence
RE
03/12Insurers face double whammy from coronavirus crisis
RE
03/11Standard Life Aberdeen profit down 10%, eyes 'turbulent' 2020
RE
03/10M&G : 2019 Pretax Profit Jumps; Balance Sheet 'Resilient'
DJ
03/10M&G : Insurer M&G posts in-line operating profit in first results, pays special ..
RE
More news
Financials (GBP)
Sales 2020 25 000 M
EBIT 2020 973 M
Net income 2020 743 M
Debt 2020 6 235 M
Yield 2020 14,0%
P/E ratio 2020 4,66x
P/E ratio 2021 5,27x
EV / Sales2020 0,38x
EV / Sales2021 0,38x
Capitalization 3 364 M
Chart M&G PLC
Duration : Period :
M&G plc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends M&G PLC
Short TermMid-TermLong Term
TrendsNeutralNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 12
Average target price 217,67  GBp
Last Close Price 130,05  GBp
Spread / Highest target 131%
Spread / Average Target 67,4%
Spread / Lowest Target -0,04%
EPS Revisions
Managers
NameTitle
John William Foley Chief Executive Officer & Director
Michael Jonathan Evans Chairman
Roddy Thomson Chief Operating Officer
Clare Jane Bousfield Chief Financial Officer & Director
Mark Thomas FitzPatrick Director
Sector and Competitors
1st jan.Capitalization (M$)
M&G PLC-45.17%4 152
BLACKROCK, INC.-11.85%68 482
UBS GROUP AG-29.19%33 948
BANK OF NEW YORK MELLON CORPORATION (THE)-29.98%29 809
T. ROWE PRICE GROUP INC-15.71%22 788
STATE STREET CORPORATION-29.77%18 876