Woodford Equity Income Fund Closed Down

Yesterday, Link Fund Solutions acting as the Authorised Corporate Director of the LF Woodford Equity Income Fund (“the Woodford Fund”) announced its closure.

Woodford Fund closure

Link Fund Solutions is now seeking approval from the FCA to:

  • Formally proceed with the winding up of the fund;
  • Liquidating the remaining assets; and
  • Seeking to return them to investors in instalments.

It is anticipated that this process will begin on 17 January 2020 and is likely to take some time as certain assets are unlisted and highly illiquid and are likely to take many months to sell. It is without doubt that investors will all face financial losses, although they are likely to be covered by the Financial Services Compensation Scheme for losses up to £85,000.

The closure follows on from the suspension of Woodford Fund on 3 June 2019 following poor performance and a high rate of redemptions escalating in May 2019. The fund which was at one time worth about £10 billion is now estimated to be worth about £3 billion. It is to be renamed the LF Equity Income Fund.

As we have previously commented, the failure of the Woodford Fund raises serious questions about financial advisers and platforms, such as Hargeaves Lansdown that continued to recommend investment into the fund up to the date of its suspension.

How can Nelsons help?

Cathryn Selby is a Partner in our Dispute Resolution team specialising in professional negligence claims.

If you have concerns about advice you have received to invest in the fund then please speak to Cathryn or another member of our team in DerbyLeicester and Nottingham on 0800 024 1976 or contact us via our online form.