You are here: Home - Investing - Experienced Investor - News -

Trapped Woodford investors find out details of first payment

0
Written by: Paloma Kubiak
28/01/2020
Investors trapped in disgraced Neil Woodford’s former flagship fund have today received details of how much money they’ll get back as part of the first tranche of payments.

In a letter to investors administrator Link Fund Solutions (LFS) confirmed investors of the LF Equity Income fund (formerly LF Woodford Equity Income fund), would receive the first capital distribution payment on or around 30 January.

While this news may come as relief to investors who have witnessed the fund’s performance dive since trading was suspended and the manager being sacked last year, the payment will fall below expectation.

The capital distribution will vary depending on share class, with investors receiving between 46.36p and 58.99p per share. This is a far cry from the £1 per share listing at launch in June 2014 and £1.38 a share at the peak of the flagship Woodford fund on 2 June 2017.

This is the first tranche of payments made from the sale of liquid assets. Money is still trapped as the illiquid assets still need to be sold.

Money will be paid into investors’ nominated bank accounts. People who hold their investment through a fund platform may receive payment a few days after 30 January due to the way payments are processed.

Ryan Hughes, head of active portfolios at AJ Bell, said: “In some respects, today represents the first day of closure for investors who have suffered from the terrible performance of the Woodford Equity Income fund. However, while this payment of the first tranche of the liquidated assets will be a relief for thousands of investors who have been trapped in the fund since June last year, there is still huge uncertainty around the money still stuck in illiquid assets.

“This payment represents just over 70% of the current fund value and has been raised from the sale of the liquid element of the portfolio. Investors will be acutely aware that a large portion of their investment remains trapped in the illiquid, unquoted holdings that Park Hill are trying to sell.

“Selling the liquid holdings was the easy bit. For Park Hill, it is a hugely challenging task to sell the illiquid holdings in a timely fashion and investors still remain in the dark as to how long they will have to wait for the remainder of their money, and importantly, how much they are actually likely to get back.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Privacy Preference Center

Necessary

Advertising

Analytics

Other

Read previous post:
Banks asked to explain overdraft rate hikes

The financial regulator has asked major banks to provide details of how they set their new overdraft rates at around...

Close