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). Since then the fund suspension has been extended, however 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 - Subject to FCA approval, it is expected that clients who hold this fund will start to receive capital distributions from the sale of the fund’s assets from the end of January 2020. For any less liquid holdings, these will take longer to sell and you should receive proceeds from these in subsequent capital distributions. 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 has announced that the fund will change name from LF Woodford Equity Income to LF Equity Income. They have said this will happen as soon as practically possible and once regulatory permission has been received.
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 offical 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. As with the initial suspension of the Woodford Equity Income fund, the suspension will be reviewed at least every 28 days while LFS decide what action they want to take with the fund.
If you hold this fund you do not need to take any further action for the time being. We will update this page as and when we receive further information on the suspension of this fund.
For further information please click on the Fidelity link below
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.