Investors awaiting payments from the now wound-up Woodford Fund have been informed that there will be a delay in them receiving their initial payments.
Investors were previously informed that they would receive their first payments on 20th January, however, this has now been pushed back to 30th January.
The authorised director of the fund, Link Fund Solutions, has said that:
“The change to the timetable is required to ensure that investors retain exposure to the equity market for the entire period prior to the fund being wound up as required by the regulations.
“This delay also allows for a significant portion of the fund’s holdings in money market instruments to be liquidated in a way that minimises costs to the fund.”
Those who invested in the Woodford Fund and are awaiting their first payments are due to receive two thirds of their investments from investment management corporation, BlackRock. BlackRock has sold down the listed stocks of the Woodford Fund and, as a result, have been able to raise £1.9 billion through sales. This amount totals 63% of the assets held in the fund.
Link Fund Solutions have also commented that they will write to all investors to inform them how much they will receive in the initial payments prior to 30th January. However, they have yet to comment on any further payments to investors.
As previously reported, the Woodford Fund was suspended in June 2019 and then subsequently closed in October 2019 following poor performance and a high rate of redemptions escalating in May 2019.
How can Nelsons help?
The closure of the Woodford Fund last year has raised serious questions about financial advisers and platforms, such as Hargreaves Lansdown, that continued to recommend investment into the fund up to the date of its suspension.
At Nelsons, we are currently supporting investors concerning claims against Hargreaves Lansdown following the failure of the Woodford Equity Income Fund.