Woodford and Newman paid £20m in dividends last year: reports

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Woodford and Newman paid £20m in dividends last year: reports

Neil Woodford and Craig Newman have received almost £20m in dividends during the last financial year, according to FT reports.

The FT calculated the figure by assuming an average fee of 0.5% on the £12bn Woodford Investment Management (WIM), the fund business set up by the former Invesco Perpetual pair, had under management in the year to March 2019.

The analysis assumed expenses and the effective tax rate for WIM were in line with its previous financial year and that the company had no additional large one-off items during the 2018-19 financial year.

People familiar with the company's accounts confirmed the calculation and told the FT Woodford and Newman had already paid their tax for the most recent financial year. The firm's results will be published in late December or early January.

The news comes just two weeks after Woodford was removed as manager of the firm's flagship equity income fund. The fund has since been wound up, with Woodford resigning from his other two funds and announcing he would close down WIM once it had worked its three-month notice period.

The period does not encapsulate the closing down of the fund, which was suspended in June and, subsequently, the business.

Woodford has been criticised by many for continuing to take fees for Woodford Equity Income despite investors not being able to access their cash for the past five months. During that time, the fund raked in more than £8m for the firm.

 

This article was first published by InvestmentWeek, a sister title to International Investment.

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