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.
For the time being you will not be able to buy or sell units in the fund, this situation will not change until the suspension is lifted. Our understanding is that the fund will remain suspended for 28 days and in that time Woodford and Link will need to decide whether or not they are ready to remove the suspension. They will need to review the suspension at least every 28 days until the suspension has been lifted. Update: On July 1st Link confirmed that the suspension would be extended for another 28 days. Then on July 29th Link said that they anticipate that the suspension is likely to last until early December, but that they will continue to update investors every 28 days
If you have a regular monthly savings plan into this fund, your contribution to the suspended fund will remain as cash in your Fidelity account. You will of course have the option of investing that cash in alternate funds or leaving it as cash.
If you have dividend reinvestments coming into this fund, while the fund is suspended these dividends will remain as cash in your account.
If you have a regular monthly withdrawal plan from your account coming out of this fund it will not be possible to sell units. If there is insufficient cash to cover the withdrawal Fidelity will sell units from your largest fund holding.
Following on from the suspension of the Woodford Equity Income fund, Fidelity have taken the decision to prevent clients from making new investments in to the Woodford Income Focus fund. This means that you will not be able to make new purchases, make regular monthly contributions or receive dividend reinvestments, however you will be able to sell any units that you may currently hold in the Woodford Income Focus fund.
Fidelity have also 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.