Woodford investors set to receive payments starting January 2020

16 December 2019

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

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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.

This article first appeared on our sister website Money Observer

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