London Daily

Focus on the big picture.
Monday, Apr 06, 2026

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
UK Considers Deploying Aircraft Carrier for US Independence Day Celebrations Amid Renewed Transatlantic Focus
United Kingdom Moves to Attract AI Firm Anthropic Amid Tensions with US Defense Officials
RAF Intercepts Iranian Drones in Middle East to Defend Allied Security Interests
Labour Signals Shift on Foie Gras and Fur Restrictions to Advance EU Trade Talks
Seven Arrested Near RAF Base as UK Authorities Respond to Protest Activity
Economic Pressures Mount as Analysts Warn UK Growth Is Being Constrained by Policy Burdens
UK Green Party’s Push for Church-State Separation Sparks Debate Over National Identity
Strategic Island Emerges as Growing Challenge for United States and United Kingdom Defense Planning
Pepsi Pulls Sponsorship from UK Festival Following Backlash Linked to Kanye West
Signs Emerge of Declining Enthusiasm for Social Media in the United Kingdom
Security Alert Raised Ahead of Meghan Markle’s Planned Visit to Australia
UK Food Halls Defy Hospitality Slowdown, Emerging as Bright Spot in Challenging Market
UK Sets Firm Conditions for Military Action, Insisting on Legal Mandate and Clear Strategy
UK Medicines Regulator Launches Probe into Peptide Clinics Over Health Claims
New North Sea Drilling Unlikely to Significantly Cut UK Gas Imports, Analysis Finds
Woman Linked to UK’s First All-Female Terror Plot Faces Deportation
Downed US Aircraft Over Iran Linked to Operations from UK Airfield
Two Men and Teen Detained in UK Following Attack on Jewish Charity Ambulance
UK Police Launch Inquiry After Firearms Left Unattended Outside Mayor’s Residence
Giuffre Family Calls on King Charles to Meet Epstein Survivors During US Visit
Amber Wind Warning Issued as Storm Dave Approaches Parts of the United Kingdom
Prince Harry and Meghan’s Australia Visit Set to Draw Heightened Global Attention
UK Considers Entry Fees for Overseas Visitors at Major Museums Ahead of 2026 Travel Season
UK Prime Minister and Kuwait Crown Prince Coordinate Security Response After Regional Escalation
Calls Grow to Expand Fully Paid Maternity Leave for UK Teachers Amid Workforce Pressures
UK Secures Tariff-Free Access to US Market in Landmark Pharmaceuticals Agreement
Trump Projects Strength in Critique of UK Leadership and Naval Readiness
UK FinTech Setback as VibePay and Smartlayer Cease Operations Amid Funding Pressures
UK Leads Global Coalition of Over Forty Nations to Address Strait of Hormuz Crisis
UK Firms Urged to Accelerate Preparation as New Sustainability Reporting Rules Take Shape
UK Moves Rapid Sentry Air Defence System to Kuwait After Drone Strike Escalation
Transatlantic Relations Tested as UK Seeks Balance While Trump Reshapes Strategic Approach
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
UK Leads Coalition of Over Forty Nations Urging Iran to Reopen Strait of Hormuz
UK Secures Tariff-Free Access for Medicines in Landmark US Pharma Trade Agreement
King Charles III Invited to Address Joint Session of U.S. Congress in Rare Diplomatic Honor
Debate Grows Over Whether Expanded North Sea Drilling Can Reduce UK Energy Bills
UK Faces Heightened Risk of Jet Fuel Shortages, Airline Chief Warns
UK Ends Police Investigations into Lawful Social Media Posts After Review Finds Overreach
Abramovich Moves to Establish Charity for Frozen Chelsea Sale Proceeds Amid UK Dispute
Starmer Reaffirms NATO Commitment While Responding to Trump’s Strategic Critique
UK Aid Reductions Raise Fears of Severe Human Impact Across Parts of Africa
UK Signals Renewed Push for EU Cooperation as Iran Conflict Reshapes Security Landscape
×