Trading in second Woodford fund suspended: administrator

Trading in second Woodford fund suspended: administrator”

The fund was initially suspended after anxious investors started withdrawing their cash, but, because Mr Woodford and his team had bought stakes in so many unlisted companies, selling the assets was extremely hard. Link concluded investors would get their money back more quickly if the assets were sold and the money distributed in stages - though the prices secured for assets of which the fund is a forced seller may of course face pressure.

LFS considers the winding-up of the WEIF to be in the best interests of all investors and will enable the return of cash to investors at the earliest opportunity.

There has been criticism that, in the meantime, Woodford continued to charge fund fees of about £65,000 a day to customers.

Neil Woodford, once hailed as the greatest stock-picker of his generation, has also been dumped from having any further involvement in the fund, with investors told they can not expect to see their money returned until at least the end of January.

The Woodford fund was suspended in June following a surge in redemption requests from investors, including one from the Kent local authority pension fund, and today it was announced that it is to be wound up as soon as practicable rather than re-opened.

Woodford's name is also being removed from the fund, which will be renamed the LF Equity Income Fund, and the assets handed to BlackRock and Park Hill for sale.

While investors in the Woodford Equity Income Fund cannot now buy or sell units, trading in the Multi-Manager funds is not restricted and you can buy and sell the portfolios as normal. As a result, the impact of one of these funds on the Multi-Manager portfolios' performance is limited. The investment vehicle, worth about £750m two years ago, could be closed permanently like the Equity Income fund, Link said. Please see the fund factsheets for more details.

In a letter to investors, Woodford Equity Income Fund's authorised corporate director Link Fund Solutions said the suspension in June was created to give Woodford Investment Management time to reposition the fund's portfolio into more easily sellable investments but that while progress was made, it was not sufficient to provide reasonable assurance as to when the repositioning would be fully achieved.

But on Tuesday the decision was made to close it instead.

As always we're determined to deliver the best long-term outcomes for investors in our Multi-Manager funds.

The HL Multi-Manager Funds are managed by our sister company HL Fund Managers Ltd.

Like this



19 October 2019
Kyle Lowry receives contract extension from Toronto Raptors
And bet on Lowry being in the middle of all of it, just as he has been for the first seven years as a Raptor. Nurse said McCaw was scheduled to have an MRI later on Wednesday but didn't think it was a serious issue.

19 October 2019
Trump returns to Texas today for Dallas rally
Energy Secretary Rick Perry, who he said is leaving his post at the end of the year after three years in the Trump administration. Robin Armstrong with the R-N-C says this is not because the President thinks Texas is up for grabs.

19 October 2019
Bermuda to face lashing from Hurricane Humberto
Atmospheric conditions are not ideal for Jerry to get too strong, but these factors don't point strongly one way or the other. Hurricane Jerry is one of six named storms whirling at once in the Atlantic and Pacific this week, setting a record.

19 October 2019
NZ rout Ireland to advance to World Cup semifinal
Tonight's loss in Tokyo will sting for a long time, but he says he will ultimately look back on his time in charge with fondness. From here on out, it was just about damage control for Ireland and not allowing this to become a World Cup humiliation.

19 October 2019
First look at NASA's next generation spacesuits for moon exploration in 2024
These particular suits are created to be worn during take-off and landing, and for protection within the spacecraft and the ISS. Earlier Tuesday, the US Space Agency unveiled designs for what will be its next-generation spacesuit , known as the xEMU.

19 October 2019
Jennifer Lawrence to marry this weekend
It was not being lucky in playing the lottery, but Lawrence saw her future husband as her "favorite person she can not leave". Is he nice? Is he kind?' It's just - this is the one, I know that sounds really stupid but he's just, he's - you know.

19 October 2019
Boris Johnson defiant after British parliament votes to force Brexit delay
If he wins the vote , Johnson will have successfully fulfilled his campaign pledge to deliver Brexit to the British people. Lawmakers will first vote on whether to withhold approval until legislation to implement the agreement has been passed.

19 October 2019
Tottenham manager Mauricio Pochettino rejects calls for overhaul
Tottenham Hotspur head coach Mauricio Pochettino has said that the club does not need to sign players in the January transfer window.

19 October 2019
'Grow and build' - All Blacks learn lessons from Canada thumping
When they were on, they easily passed by the first line of Canadian defence and put their speed on display from there. The All Blacks crushed Canada - as expected - but Beauden Barrett is human after all .

19 October 2019
White House plans G-7 agenda, tells world to 'get on board'
Trump said Mulvaney later clarified his remarks, and the president dismissed the House inquiry as "a bad witch hunt". Republicans, for their part, expressed concern about the White House's strategy of getting its messaging across.