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

Woodford fund to remain closed

Written by:
Woodford Equity Income will remain closed until at least early December, the fund’s administrators have confirmed.

In a statement on the Woodford Investment Management website, Link Fund Solutions apologised once again for the fund’s continued suspension, but said it was “fully committed to getting the fund into a position that delivers the best possible outcomes for our investors”.

Investors in the fund have been unable to access their money since trading was suspended on 3 June.

Once revered manager Neil Woodford was forced to pull down the shutters after a stampede of investors requested their money back following a long period of underperformance.

In the latest update, the administrator also confirmed the fund has performed badly since the freeze.

It said: “During the latest 28-day period, which covers much of September, the fund has underperformed in relative and absolute terms.

“A primary reason for the underperformance was the downward revaluation of Benevolent AI, a UK-based healthcare company that uses artificial intelligence for drug development.

“On 17 September, the company announced that it had raised $90 million from Temasek, a Singapore-based investment company. The funding round valued the company at a lower level and this has subsequently impacted the overall net asset value (NAV) of the fund.”

The statement also said 84 per cent of the proceeds from share sales made to reposition the portfolio since the suspension have been reinvested in FTSE 100 companies.

According to the fund’s interim report to 30 June, these include new investments into Imperial Tobacco, BT and IAG.

Woodford IM also reiterated it will continue to charge a management fee “to cover the infrastructure and resource costs associated with running an actively managed fund”.

The fund group has faced backlash from investors for continuing to charge management fees during the suspension. It is reportedly taking in £100,000 a day.

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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

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

  • RT @STEPSociety: UK Ministry of Justice abandons plan to increase EW probate fees, described by STEP’s Emily Deane TEP as a stealth tax on…
  • RT @STEPSociety: UK Ministry of Justice abandons plan to increase EW probate fees, described by STEP’s Emily Deane TEP as a stealth tax on…
  • RT @STEPSociety: UK Ministry of Justice abandons plan to increase EW probate fees, described by STEP’s Emily Deane TEP as a stealth tax on…

Read previous post:
Mortgage and rental costs too high for 2.5 million people

Some 2.5 million people in England are unable to afford the rent or mortgage on their homes, new research from...