LONDON, July 3 (Reuters) - British asset manager Woodford Investment Management is planning to cut staff at its offices in Oxford in central England after the suspension of the firm’s flagship 3.7 billion pound ($4.65 billion) fund a month ago.
“We have reluctantly entered into redundancy consultations with a number of staff to advise them that their roles are at risk,” a Woodford spokesman said by email on Wednesday.
The firm, run by veteran fund manager Neil Woodford, employed around 45 people at March 31 2018, when it last published accounts, the spokesman said. He declined to say which roles were affected.
Woodford told an event for financial advisers last month that cuts would affect support staff, rather than the investment team, according to a source who attended the event.
Woodford caused outcry among investors, which include hundreds of thousands of small savers, when he locked the equity income fund a month ago because it could not meet redemption requests, following a period of underperformance.
Link Fund Solutions, the firm’s authorised corporate director, said this week that the fund would remain suspended, without giving a reopening date.
Woodford has faced criticism for continuing to charge fees while the fund is suspended.
Woodford is selling the fund’s less liquid and unlisted assets in favour of more liquid stocks so that it can reopen.
$1 = 0.7948 pounds Reporting by Carolyn Cohn. Editing by Jane Merriman