Woodford investors set to receive payments starting January 2020

Investors are due to receive payment from the fund in January. However, there is no word on the sale of the fund’s illiquid stocks.

Funds and Investment Trusts December 13, 2019 by Tom Bailey

Investors stuck in Neil Woodford’s Equity Income fund are due to start receiving money back in January, according to a letter to investors from Link Fund Solutions.

According to the letter, the first payout to investors will come in several instalments over a number of months and its value will be based on how many shares each investor holds. 

The first payment is expected “on or around 20th January 2020.” However, investors who hold the fund on a platform may see their payment delayed by several days.

Further payments will be made as the fund continues to sell off underlying assets.

The letter noted that BlackRock, which was appointed to sell off a portion of the fund, has sold £1.65 billion worth of assets, representing 56% of the overall fund. But there is little information on the progress of the sale of the fund’s less liquid assets, which the the private equity specialist Park Hill was appointed to sell.

The letter says: “We and Park Hill continue to explore opportunities for selling the Portfolio B assets while maximising the return for investors. However, at this stage we are unable to confirm when these assets will be sold.”

Investors were suspended from withdrawing their holdings in Woodford’s Equity Income fund in June 2019, after the fund was unable to sell its illiquid assets to meet a heavy flow of redemptions.

The suspension eventually led to Link, the fund administrator, announcing in October that it would liquidate the fund, resulting in Woodford Asset Management closing down.

The letter also noted that the name of the fund, until it is fully liquidated, will be changed to LF Equity Income Fund.

Subscribe to Money Observer Magazine

Be the first to receive expert investment news and analysis of shares, funds, regions and strategies we expect to deliver top returns, plus free access to the digital issues on your desktop or via the Money Observer App.

Subscribe now

Comments

Woodford investors set to receive payments starting January 2020

For those that have invested in the fools promise of continued speculative investment but with the midas touch for making money. but soon be getting back thier hair cut investments for thier troubles. Does Money Observer wish to comment on any long term sound performance funds or trust that may be of interest for those readers who have learnt from thier Woodford experience and no longer wish to be involved in newly established investment houses. and are now seeking an consistant estabished performance investment house. of around say 4% to 5% annual growth after dividens reinvested.

woodford equity inc

A dreadful disappointment for everyone including NW & it need never have happened if everybody had been less greedy & impatient.

Launching a large closed end inv trust would have been better but instead chose an unwieldy open ended monster that was his downfall given his predeliction for unlisted caps and unmarketable secutities.

The start up firm founders who sold NW these securities based on pie in the sky ambition & blue sky promises must be laughing all the way to the bank as they line up another mug.

Add new comment