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

Woodford investors to start getting money back on 20 January

Written by:
Investors trapped in Neil Woodford’s former Equity Income fund will start getting their money back from 20 January, administrators have confirmed.  

In a letter to investors, Link Fund Solutions said the Financial Conduct Authority (FCA) has approved its request to wind up the fund.

It said the winding up process will begin on 18 January and capital distribution will be calculated on 6 January. Link will write to investors on 13 January to tell them how much they will get back.

The letter also confirmed that the fund has been renamed the LF Equity Income fund with immediate effect.

The once-popular fund has fallen 18.6% since it was first suspended on 3 June. It is down 3.2% since Woodford was sacked as manager on 15 October.

Ryan Hughes, head of active portfolios at investment platform AJ Bell, said: “The latest letter to investors at least gives them a date when they can expect the first return of their money, with the payment being made on 20th January.

“Investors will get a little over half the current fund value back on that date, representing £1.65bn. This values the total fund at £2.95bn, with the valuation having been written down further in the past few months in the unquoted part of the portfolio.

“The valuation now represents a near 19% loss for investors since the fund gated at the start of June.”

Link said BlackRock, the firm appointed to sell the firm’s listed assets, has sold £1.65bn of stock representing 56% of the overall fund.

It said it and specialist broker Park Hill are exploring options to sell the fund’s unlisted stock but is unable to confirm when these assets will be sold.

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.

Seven ways to get help with energy bills this winter

We knew today’s announcement was going to be painful, but it’s still a shock to the system. When this kick...

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week