Hargreaves Lansdown CEO Apologizes After Woodford's Stumble

(Bloomberg) -- Hargreaves Lansdown’s Chris Hill issued an apology Sunday after a tumultuous week for investors in Neil Woodford’s flagship fund.

“I would like to apologize personally to all clients who have been impacted by the recent problems with the Woodford Equity Income Fund,” said Hill, chief executive officer of U.K. investment platform Hargreaves Lansdown. “We all share their disappointment and frustration.”

Woodford froze redemptions from his LF Woodford Equity Income Fund last week, stunning the markets and drawing the attention of regulators. Hargreaves removed the main Woodford fund and another one that Woodford’s firm oversees from a list of favorites and said it would waive its platform fee for that fund as long as client withdrawals are frozen.

“We are confident in the robustness of how we analyze, research and compile our favorite fund list with a focus on ensuring best value for clients,” Hill said Sunday in the statement. “Nonetheless, we are reviewing this specific situation to ensure we learn from it and address it for the benefit of our clients going forward.”

Woodford’s move to block withdrawals is a rare step taken by a fund, especially a retail equity vehicle, and marks a dramatic change in the reputation of Woodford, who once managed the U.K.’s largest equity fund. His fund has been struggling recently, a painful period that’s been exacerbated by his wagers on more illiquid investments. The suspension allows him to move the portfolio from “unquoted and less liquid stocks” into more liquid bets.

The Financial Times reported that Hargreaves research director Mark Dampier, who has been a longtime supporter of Woodford, is planning to retire from the firm. A spokesman for Hargreaves Lansdown said Dampier has no immediate plans to retire.

To contact the reporter on this story: Katherine Chiglinsky in New York at kchiglinsky@bloomberg.net

To contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Kevin Miller, Ian Fisher

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