Sir Stephen Bubb has said he is "very confident" the think tank Charity Futures will retain the financial backing of the investment manager Neil Woodford after the trader saw substantial falls in the value of his fund.
The news comes after a statement today from Woodford’s LF Woodford Equity Income Fund that said it had come "to the conclusion it is in the best interests of all investors in the fund to suspend the issue, cancellation, sale, redemption and transfer of shares in the fund".
This decision was made after Kent County Council asked to withdraw £250m from the fund. Another £560m had been withdrawn by investors in recent weeks.
The value of the fund fell by as much as 20 per cent today, although it rallied in later trading.
Woodford provided £400,000 a year funding to Charity Futures to help set up the think tank in 2015.
In an interview with Third Sector in 2017, Bubb said that Woodford’s support "fits his philosophy of investment: developing patient capital, thinking forward, looking for companies that are going to grow, investing at an early stage in ideas".
Speaking to Third Sector today, Bubb, founder-director of the think tank, said "there’s no reason to doubt" that Woodford would be in a position to provide funding in the future because the money he provided was a "personal gift" rather than made through his company.
"It is not affected by what happens on the business side," Bubb said. "Neil Woodford has a strong personal commitment to what we’re doing, so I am sure that will continue. I am very confident about that."