You may be aware that the Woodford Equity Income fund was suspended on June 3rd 2019 by the fund’s Authorised Corporate Director, Link Fund Solutions (LFS). On October 15th 2019 LFS announced that the fund will be wound up, meaning that the fund's holdings will be sold and the proceeds received will be returned to the fund holders.
Capital distributions - LFS have announced that the regulator (the FCA) has approved the winding up of the fund. The winding up commenced on January 18th 2020 and the first capital distribution was paid at the end of January 2020 with the second distribution paid in late March 2020. If you held the fund then please check which unit you held by logging in to your account.
|Unit||First Capital Distribution Amount
(pence per unit)
|Second Capital Distribution Amount
(pence per unit)
As far as subsequent capital distributions are concerned, as these will be dependent on the sale of less liquid holdings these will take longer to complete. There is no indication yet as to when you could expect to receive any subsequent payment(s).
As these are capital distributions they could affect your Capital Gains Tax position, if in any doubt you should check with a tax adviser.
Changing name – LFS announced that the fund changed name from LF Woodford Equity Income to LF Equity Income on December 11th 2019.
If you hold this fund you do not need to take any further action. It is not possible to sell your holding, however you will receive capital distributions as the fund is wound up. These will be placed as cash in the account that you held the fund in, eg if you hold the fund in your ISA the capital distributions will be added to your ISA.
For further information please click on the Fidelity link below and also the latest announcement from LFS regarding the winding up of the fund by clicking here and their Questions & Answers by clicking here.
On October 16th 2019 LFS took the decision to suspend dealings in the Woodford Income Focus fund.
In December 2019 it was announced that Aberdeen Standard Investments (ASI) would be appointed as the investment manager of the Income Focus fund and this took effect from December 31st 2019 with the fund then changing name to LF ASI Income Focus Fund.
ASI re-opened the LF ASI Income Focus fund on February 13th 2020.
ASI have also indicated that they will waive their fees until the end of May 2020.
For further information please click on the Fidelity link below. You can also click here to view the latest update from Link Fund Solutions and click here for the latest update from ASI.
The investment trust continues to trade as normal. Woodford have served notice that they will be resigning as the manager of the trust and on October 24th 2019 it was announced that Schroders would take over the management of the trust by the end of 2019 at which time the trust will change name to Schroders UK Public Private Trust.
Schroders have announced that the fee structure will change when they take over the running of the trust. For the first three months they will not take a management fee, they will then charge1% a year after that on the first £600 million of assets, this will fall to 0.8% on assets above this level. Schroders will not take a performance fee until Dec 31st 2022, they will then implement a performance fee of 15% of any excess returns above a net asset value (NAV) per share of 77p, this compares to a NAV of 63.2p on October 22nd 2019.
Woodford Investment Management have announced that their company will close.
Fidelity have provided a link on their website that provides more detailed information on the Woodford funds which should hopefully answer any questions that you have. Please click on the link below to view this;
If you have any further questions then please don’t hesitate to contact us.