Vote: Investors in a failed fund run by former star trader Neil Woodford (pictured) yesterday approved a compensation scheme
Investors in a failed fund run by former star trader Neil Woodford have approved a compensation scheme of up to £230million.
Some 93.7 per cent who voted backed the proposed redress strategy, four years after the fund was frozen – 300,000 people will be paid up to 77p for each £1 they lost when the Woodford Equity Income fund was closed in 2019.
Fund supervisor Link Fund Solutions said it was ‘the fastest route for redress possible.’
The proposals will progress to final approval in court on January 18. Investors are due to acquire their first payment in March when between £183.5million and £200million will be paid out.
If the vote had been blocked, they would have had to make individual claims to claw back money.
But not all were happy. ‘Game on; and we’re up for it. Let battle commence,’ said Andy Agathangelou, of the Woodford Campaign Group, which will challenge the scheme in court next month.
The fund, which once managed £10billion, had a £3.6billion valuation when it shut amid a liquidity crisis.
