In the Press… Neil Woodford and the Liquidity of Mutual Funds
Jonathan Ford, FT, Monday, June 10, 2019: The collapse of the Equity Income Fund managed by the former stat stockpicker Neil Woodford illustrates again all the dangers of open-ended funds that promise instant liquidity while investing sometimes in hard to sell financial assets. In a fund penalized by large outflows, whatever the underlying reasons, remaining investors have a strong incentive to run since it becomes more and more difficult and costly for the fund manager to provide the expected liquidity. […]