London Daily

Focus on the big picture.
Monday, Dec 15, 2025

Investors seek millions from Woodford fund collapse

Investors seek millions from Woodford fund collapse

Three years ago, Robin McConnachie suddenly found himself unable to access money he'd invested with famed fund manger Neil Woodford.

"I was shocked," said the retired City banker, who had invested £12,000 in the fund which eventually collapsed.

On Friday, lawyers will file a case against the fund's administrators Link Fund Solutions, alleging they failed to properly supervise the investments.

But Link says it acted within the rules and will "vigorously defend itself".

Mr Woodford was one of the UK's most high profile stockpickers and when he set up his own managed fund, he came with an impressive reputation.

At Invesco Perpetual, where he made his name, anyone investing a pension fund of £10,000 with him at the start of his time there would have seen it grow to £250,000 by the time Mr Woodford resigned to launch his own business 26 years later.

Investors, ranging from ordinary people to pension funds, put money into the Woodford Equity Income Fund. At its peak, the fund was reportedly managing more than £10bn.

But as investors became increasingly worried about the investments being made on their behalf, many withdrew their money. More than £500m was taken out in just four weeks.

Then on 3 June 2019 - three years ago today - Link froze the fund, which later collapsed.

"Link was in place to act as the referee," said Daniel Kerrigan, senior associate at the London firm Harcus Parker, which is bringing the case. "They let the fund go off the rails."

Lawyers from the firm will argue Link had a duty to investors to ensure the fund was prudently managed and not overly risky. They say those duties were breached, for instance when the fund invested in unlisted start-ups instead of in large, dividend-paying stocks.

But Link says it will be "vigorously defending" the charges.

"A key responsibility of Link ... was, and is, to act in the best interests of all investors in the Woodford Equity Investment Fund," a Link spokesperson said.

He added: "Link takes this and its other responsibilities very seriously and considers that it has acted at all times in accordance with applicable rules, as well as in the best interests of all investors, and it will continue to do so."

It will be up to the High Court to decide whether the fund's eventual collapse in October 2019 was Link's fault. Neither Mr Woodford himself, nor his company, is targeted by the litigation.

Neil Woodford was once known as a star stockpicker


A sale of the fund's assets has already allowed some money to be returned to investors.

Mr McConnachie has so far received just under £8000 in that process but he's hoping the lawsuit can return the rest.

Having invested into Mr Woodford's fund at Invesco Perpetual, he decided to diversify his holdings and direct some of his money in his new venture.

"He was regarded as a high-flying fund manager," Mr McConnachie said. "The prospectus said the new fund will be run along similar lines."

He said he was so angry by the way Link acted, he decided to join the lawsuit against them.

"What Link did or didn't do is simply not acceptable and they should be called to account."

Last year, Neil Woodford spoke publicly about the embarrassing saga, telling The Daily Telegraph he was "very sorry for what [he] did wrong".

He added: "I can't be sorry for the things I didn't do. I didn't make the decision to suspend the fund, I didn't make the decision to liquidate the fund. As history will now show, those decisions were incredibly damaging to investors and they were not mine."

Mr Woodford has since set up a new investment business though it has not been welcomed by all.

The FCA has been carrying out its own investigation into the fund's collapse, and is yet to decide whether to take any action. In January, MPs urged the financial watchdog to move quickly, given the public interest in the scandal.

Harcus Parker represents 7,000 investors who lost money. The initial claim against Link, lodged on Friday, represents 1,500 of those and will seek damages of an estimated £18m.

A further claim relating to the same issue is being brought against Link by the firm Leigh Day. It will represent 12,000 investors.

"There are believed to be around 300,000 people affected by this issue out there," Mr Kerrigan said. "We encourage people who have not signed up to do so."

Newsletter

Related Articles

0:00
0:00
Close
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
UK Boosts Protection for Jewish Communities After Sydney Hanukkah Attack
UK Government Declines to Comment After ICC Prosecutor Alleges Britain Threatened to Defund Court Over Israel Arrest Warrant
Apple Shutters All Retail Stores in the United Kingdom Under New National COVID-19 Lockdown
US–UK Technology Partnership Strains as Key Trade Disagreements Emerge
UK Police Confirm No Further Action Over Allegation That Andrew Asked Bodyguard to Investigate Virginia Giuffre
Giuffre Family Expresses Deep Disappointment as UK Police Decline New Inquiry Into Andrew Mountbatten-Windsor Claims
Transatlantic Trade Ambitions Hit a Snag as UK–US Deal Faces Emerging Challenges
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
UK Economy Falters Ahead of Budget as Growth Contracts and Confidence Wanes
Australia Approves Increased Foreign Stake in Strategic Defence Shipbuilder
Former UK Prime Minister Boris Johnson proclaims, “For Ukraine, surrendering their land would be a nightmare.”
Microsoft Challenges £2.1 Billion UK Cloud Licensing Lawsuit at Competition Tribunal
Fake Doctor in Uttar Pradesh Accused of Killing Woman After Performing YouTube-Based Surgery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
UK Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
The Disregard for a Europe ‘in Danger of Erasure,’ the Shift Toward Russia: Trump’s Strategic Policy Document
Two and a Half Weeks After the Major Outage: A Cloudflare Malfunction Brings Down Multiple Sites
UK data-regulator demands urgent clarity on racial bias in police facial-recognition systems
Labour Uses Biscuits to Explain UK Debt — MPs Lean Into Social Media to Reach New Audiences
German President Lays Wreath at Coventry as UK-Germany Reaffirm Unity Against Russia’s Threat
UK Inquiry Finds Putin ‘Morally Responsible’ for 2018 Novichok Death — London Imposes Broad Sanctions on GRU
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
×