Woodford investors left hanging until mid to late 2021


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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

The latest update from Link does little to ease the pain for embattled investors stuck in the Woodford Equity Income fund with the news that the winding up of the fund could still be happening in another 12 months, meaning that over 2 years would have passed since the fund originally suspended. This is of course dependent on Link being able to offload the remaining £288m that they have confirmed is left in the fund which may be challenging given market conditions are being severely impacted by coronavirus.

Investors have also learned that they have had to shell out c£15.5m in fees to BlackRock, Park Hill and lawyer Debevoise & Plimpton to facilitate the selling down of the assets that will surely stick in the throat of all investors who have been waiting patiently to get some of their money back. While these fees would have been due regardless of who was selling the assets, seeing such sums will make for painful reading for investors. The one element of positive news is that the sale of some assets to Acacia is proceeding with completion hopefully done by the end of November. Link are then hoping to make a fourth distribution to investors soon after this time.

Read the latest update for investors in the former Woodford Equity Income fund.

These articles are for information purposes only and are not a personal recommendation or advice.

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Written by:
Ryan Hughes

Ryan Hughes is Head of Active Portfolios at AJ Bell. He has 20 years of experience in finance and investments and started his career working as a financial adviser before becoming an investment analyst and discretionary fund manager as well as twice being named one of the most influential financial advisers in the UK. In 2006, Ryan joined Skandia Investment Management as a fund manager, sitting on both the investment committee and global asset allocation committee before then joining Apollo Multi Asset in 2013. In October 2016, Ryan joined AJ Bell to help establish the investment research capability.