The emergence of details on the volume of unsold assets of the Woodford Equity Income fund (WEIF) has prompted further questions from the law firms seeking compensation for investors.
Leigh Day and Slater and Gordon, the law firms seeking compensation for investors in the former Woodford fund, told The Daily Telegraph they believe the remaining unsold 25% is an indication of the collapsed fund's illiquidity, and suggests Hargreaves Lansdown may have been aware of the problems while promoting it on its best buy list.
It was announced last week that investors in the fund now known as LF Equity Income will receive 75.55% of the value of the vehicles assets, representing the liquid part of the portfolio already sold by BlackRock.
Given the extent of illiquidity, we have to ask how much Hargreaves Lansdown knew about the trouble at the fund"
Leigh Day's Bozena Michalowska said: "Given the extent of illiquidity, we have to ask how much Hargreaves Lansdown knew about the trouble at the fund.
"At what point did they realise something was wrong and why did they continue to recommend the fund to their platform's users?"
Also speaking with The Daily Telegraph, Karolina Kupczyk of Slater and Gordon, noted that this revelation will not "affect the legal case we are looking into against Hargreaves Lansdown".
Hargreaves Lansdown has declined to comment.
This article was first published by InvestmentWeek, a sister title to International Investment
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