Important information for investors in Woodford Equity Income

16th October - Update

Woodford Investment Management Closure

Following on from yesterday’s announcement about the closure of Woodford Equity Income it has been announced that Woodford Investment Management will be shut down. 

Neil Woodford said: "We have taken the highly painful decision to close Woodford Investment Management. We will fulfil our fund management responsibilities to WPCT and the LF Woodford Income Focus Fund and once completed will close the company in an orderly fashion.

"I personally deeply regret the impact events have had on individuals who placed their faith in Woodford Investment Management and invested in our funds."

What does this mean for investors?

Woodford Equity Income

Woodford Equity Income is currently suspended for trading and will not be reopened. Money will start to be returned to investors in a series of payments starting in January.

Our current understanding is that payments will go into the cash facility of the product held by clients – retaining any tax benefits if in an ISA.

If held in a GIA, the payment will be noted as taxable event in terms of capital gains tax – please seek assistance from your tax adviser if you are likely to be affected by this.

Woodford Income Focus

Today, (16/10/19), it was announced that this fund has been suspended for trading. This means that no units can be purchased, sold, switched or transferred until further notice.

The value of investments is not affected by the decision to suspend dealing, it is still dependent on the price of the shares of companies held within it. The value of your investment may, therefore, fall or rise during the suspension.

Income will continue to be paid out to clients during the suspension. Reinvested income will be paid into the relevant cash facility of the ISA or GIA account. The same will happen with monthly contributions into the fund.

The suspension has been put in place to protect the remaining shareholders in the fund in anticipation of large redemptions following the announcement of the decision to close Woodford Investment Management.

This situation will be reviewed in 28 days, with an update from Link after 14 days.

Both funds continue to be priced daily.

When we have more information will be write to investors individually but, if you require any further assistance at this stage, please contact our customer services team on 08085 498 477 or email [email protected]

30th July - Update

Link Fund Solutions Limited, the Authorised Corporate Director of the LF Woodford Equity Income Fund (“the fund”) has formally reviewed the suspension and announced yesterday (29th July) that it remains in the best interests of investors for the suspension to continue and that the suspension of dealing is likely to last until early December.

A Statement from Neil Woodford can be read here

2nd July - Update

Last night it was announced by Woodford Investment that the fund suspension will remain in place for at least another 28 days. The new review will take place at the end of July.

Over the last four weeks, Neil has been on the road, speaking with members of the IFA community where many have raised questions regarding the suspension of the equity income fund. In this Q&A style video, Neil addresses the most frequently asked and pressing of these questions.

The team at Woodford have set up a dedicated online help centre which can be found via their website. Over the coming weeks, Neil will take part in live web question and answer sessions where he will update you on progress and answer any questions you may have. 

4th June 2019

Woodford Investment announced yesterday that, with immediate effect, trading would be suspended in the Equity Income fund. This means that no units can be purchased, sold, switched or transferred until further notice.

Neil Woodford has posted a video to investors which can be viewed below. 

Neil has also written to clients with an update - if you wish to view his letter please click here

The suspension will come as a surprise to investors but those still with holdings in the fund should not panic.

The value of investments is not affected by the decision to suspend dealing, it is still dependent on the price of the shares of companies held within it. The value of an individual’s investment may, therefore, fall or rise during the suspension.

Income will continue to be paid out to clients during the suspension. Reinvested income will be paid into the relevant ISA or GIA account and units will be held in clients' cash facility until either we receive an instruction from our clients or a deal is keyed online. The same will happen with monthly contributions into the fund.

The suspension has been put in place to protect the remaining shareholders in the fund following some large withdrawals recently. This will allow the fund manager to reposition the fund without having to sell holdings quickly at a potentially unfavourable price.

We understand that the suspension will be in place for at least 28 days.

We will update you further as we receive more information.

If you require further information or have any questions about this, please contact our customer services team on 08085 498 477 or email [email protected]