Eagle-eyed investors might have noticed a minor change to the names of two of celebrated fund manager Neil Woodford’s funds.
The change happened in December 2017 following the introduction of a new fund administrator, but some investment platforms have yet to update their wording, which may confuse investors.
A footnote on the Woodford fund website states: “Some of you may have noticed that the fund has had a slight name change and is now called the LF Woodford Equity Income Fund (rather than CF). This change, which came into effect in December, reflects the acquisition of our authorised corporate director (ACD) Capita Asset Services by Link Group in November.
“For investors, nothing has changed besides one letter and by way of background, many fund firms outsource their ACD, which is the legal owner and administrator of a fund.”
What is an ACD?
An ACD is a corporate body or person given powers and duties by the financial regulator, the Financial Conduct Authority (FCA), to administer an Open-Ended Investment Company (OEIC).
This means the ACD is responsible for accounting and administration of the fund, an essential “background” role to the running of an OEIC such as the LF Woodford Equity Income Fund.
LF Woodford’s new ACD, Link Group, describes itself as a “market-leading provider of technology-enabled solutions in financial and corporate markets”.
The company adds that it’s listed on the Australian Securities Exchange with a market capitalisation of approximately AUD $4 billion and is included in the S&P 100 and the ASX 100.
Moneywise will use Woodford Equity Income’s new name in future and will update the name from CF to LF on the Moneywise First 50 Fund section for beginner investors.