Link Fund Solutions, the administrators of the closed Woodford Fund, have revealed that investors will receive back between 46.3p and 58.9p per share of their overall investments.
Woodford Fund losses
In a letter sent out to those who invested in the Fund, it has been confirmed that the amount of money that will be refunded to investors will be largely dependent on:
- When the finances were invested;
- Who was involved in the Fund’s distribution; and
- Whether they were receiving an income as a result of their investment, or the investor was in accumulation.
The first payment that all affected investors will receive will most likely be paid later this week or early next week.
The money that is being returned to investors has been generated by selling down liquid assets/holdings in the Woodford Fund, which has been managed by BlackRock.
Investors will receive the following based on their share class, according to Link Asset Services:
|
Share class |
Pence per unit |
|
A Accumulation |
57.91 |
|
A Income |
47.59 |
|
C Accumulation |
58.66 |
|
C Income |
48.24 |
|
F Accumulation |
46.36 |
|
X Accumulation |
56.45 |
|
X Income |
46.41 |
|
Z Accumulation |
58.99 |
| Z Income |
48.49 |
Hargreaves Lansdown investors
Those who invested into the Woodford Fund via investment platform, Hargreaves Lansdown (share class Z Accumulation and Income), will receive the highest return on their investments, with investors in accumulation receiving 58.9p and those receiving an income getting roughly 48.4p per share.
The reason for this is that Hargreaves Lansdown had a lower management fee arrangement in place for the Fund which meant that fewer of their investors’ finances went to it and consequently investors will receive more money back.
Despite receiving the highest return on their investments, this news will still come as a shock to Hargreaves Lansdown clients who invested in the Woodford Fund as they will still face heavy losses on their investments, as will all other investors.
At Nelsons, we are currently supporting investors concerning claims against Hargreaves Lansdown following the failure of the Woodford Fund, due to the fact that they continued to recommend investment into the Fund up to the date of its suspension.
History of the Fund’s closure
Since June last year when the fund was suspended, over 300,000 investors have been unable to access their investments and this letter from Link Fund Solutions will obviously come as bad news for all concerned.
The Fund’s suspension was due to the fact that a large number of investors in it withdrew their investments at a much quicker rate than the Fund’s manager, Neil Woodford, could sell assets.
How can Nelsons help?
Cathryn Selby is a Partner in our expert Dispute Resolution team, specialising in professional negligence claims.
If you have suffered financial losses as a result of the Woodford Fund and want to pursue a claim for compensation against Hargreaves Lansdown, please get in touch with Cathryn or another member of the team in Derby, Leicester and Nottingham on 0800 024 1976 or via our online form if you wish to discuss your circumstances.