A slightly more run-of-the-mill scandal, this fund manager was allegedly acquiring shares in the companies that he was buying through the fund that he managed. Not what the industry needs right now while the Woodford scandal’s in full swing!
Woodford seemed to be a case of hubris and ego, this seems to be a case of good old-fashioned greed.
Get rich quick in a world where something would be exposed quicker than you can say jack!
This story is extremely disappointing to read.
I do believe Woodford wanted to make the fund a success and he just kept getting it wrong. There was a lot that could have been done to avoid where we ended up today, but hindsight is 20/20.
This on the other hand, this is just using other people’s money to inflate your own positions and ensure you are always personally going to win, regardless what happens to the funds money.
“We have a Code of Ethics and personal investing disclosure requirements that hold our associates to the highest standards of conduct. When we learned of this matter, we took immediate action,” - Capital Group
Mr Denning’s lawyers say he received bad advice.
That is putting it mildly.
Most fund managers declare everything and stop trading/investing in a personal capacity and only use firm approved funds where they have no influence.
Really disappointing for the industry as a whole. I’m glad it was highlighted before it became a bigger issue, that’s the only good thing to come out of it.