Further to the initial pay-outs made in January, Link Fund Solutions have now distributed a second tranche of payments to investors following the sale of remaining assets in the Woodford Fund which marks movement towards establishing the level of loss suffered by those whose funds were frozen following its closure in October 2019.
Despite Link since stating there is no confirmed timescale as to when any further payments will be made (pending the sale of the remaining illiquid assets), Woodford Fund investors now have a clearer picture as to the percentage of loss they have incurred, as many will have incorporated their portfolio with the fund at its launch in June 2014 at £1 per share. Many have now received payments back at as little as 46.3p per share.
Ultimately, it will not be possible to finalise figures of loss until they have fully crystallised which will depend on how much liquidator, PJT Park Hill, is able to sell the remaining illiquid assets for and therefore release the remaining equity in the fund.
Claims from Woodford Fund investors
That being said, many investors are expressing increasing interest in pursuing a claim for the advice provided in connection with their investments in the Woodford Fund, with many having invested through the Hargreaves Lansdown investment platform, as well as having sought independent financial advice.
Isn’t there always a risk of losing money when investing?
Whilst it is widely accepted that there is risk involved with investments in stocks and shares, the circumstances surrounding the closure of the fund have been subject to much criticism, not least because of the alleged encouragement given to investors by Hargreaves Lansdown that their investments were safe in the fund and to not withdraw, even when many expressed concerns about the fund some months before its closure.
Inevitably, many were reassured by Hargreaves Lansdown’s confidence in the fund’s ability to recover and accordingly left their investments in the fund, encouraged by its continued appearance in HL Wealth 50 list.
This has left many investors feeling misled and looking to recover losses they feel would not have otherwise been incurred.
What are Nelsons doing?
Whilst the final payments are yet to be distributed, it is not possible to finally quantify loss. However, here at Nelsons we are encouraging those affected by the closure of the Woodford Fund to share their experiences so that we can determine the impact it has had on investors and how we can potentially commence legal action to recover losses.
We are conducting initial reviews of potential claims at no cost and are considering multiple funding options so as to accommodate a wide variety of clients.
If you have been affected by the closure of the fund, please get in touch and speak with a member of our expert Dispute Resolution team on 0800 024 1976 or via our online form if you wish to discuss your circumstances.