| One year ago today more than 300,000 savers received the news that their hard-earned cash was now trapped in the failing Woodford Equity Income Fund.
Tempted by the "star" status of its manager, Neil Woodford, investors had already suffered huge losses before the fund was suspended last June, leaving them unable to sell out and save themselves from the hits that followed.
The little value remaining of their investments is due to be returned, yet 12 months on 500m of life savings are still missing – forcing many into tough choices as they swallow their losses. One Telegraph reader, who lost more than 20,000 on his Woodford investment, said he had been forced to give up his dream of early retirement and would now struggle to help his son through university.
How much longer they will have to wait to get their money back, or whether they will at all, is still unclear. Experts have predicted that investors may have to wait until the end of 2020 to get the remains of their savings. Some have warned the payment will be practically worthless, as the fund's holdings have been devalued so much by the Covid-19 market sell off.
The fund’s demise was even more dramatic given its outperformance early on. Between its launch in 2014 and 2016 it returned 23pc versus the market's 2pc. So what, and who, was behind Mr Woodford’s sudden fall from grace? Telegraph Money’s Sam Benstead investigates the main suspects here.
Though painful, investors learnt a valuable lesson from the debacle: never to believe a manager is infallible. For many, it has completely changed the way they invest. This week we found out from Woodford savers where they have been reinvesting their money.
Understanding whether your fund is underperforming is more important than ever, yet it is becoming increasingly difficult to do so. Management firms have a multitude of tricks up their sleeve to disguise failing funds. Follow our guide to how to spot the traps.
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