Following on from yesterday’s announcement about the closure of Woodford Equity Income it has been announced that Woodford Investment Management will be shut down.
Neil Woodford said: “We have taken the highly painful decision to close Woodford Investment Management. We will fulfil our fund management responsibilities to WPCT and the LF Woodford Income Focus Fund and once completed will close the company in an orderly fashion.
“I personally deeply regret the impact events have had on individuals who placed their faith in Woodford Investment Management and invested in our funds.”
What does this mean for investors?
Woodford Equity Income
Woodford Equity Income is currently suspended for trading and will not be reopened. Money will start to be returned to investors in a series of payments starting in January.
Our current understanding is that payments will go into the cash facility of the product held by clients – retaining any tax benefits if in an ISA.
If held in a GIA, the payment will be noted as taxable event in terms of capital gains tax – please seek assistance from your tax adviser if you are likely to be affected by this.
Woodford Income Focus
Today, (16/10/19), it was announced that this fund has been suspended for trading. This means that no units can be purchased, sold, switched or transferred until further notice.
The value of investments is not affected by the decision to suspend dealing, it is still dependent on the price of the shares of companies held within it. The value of your investment may, therefore, fall or rise during the suspension.
Income will continue to be paid out to clients during the suspension. Reinvested income will be paid into the relevant cash facility of the ISA or GIA account. The same will happen with monthly contributions into the fund.
The suspension has been put in place to protect the remaining shareholders in the fund in anticipation of large redemptions following the announcement of the decision to close Woodford Investment Management.
This situation will be reviewed in 28 days, with an update from Link after 14 days.
Both funds continue to be priced daily.
When we have more information will be write to investors individually but, if you require any further assistance at this stage, please contact our customer services team on 08085 498 477 or email firstname.lastname@example.org
This article is for information only and reflects the author’s views at the time of writing, which are subject to change. This should not be regarded as a recommendation or solicitation to invest. If you are in any doubt about the suitability of an investment for your needs, you should seek professional advice.