The fund administrator Link Fund Solutions has today announced that investors will receive their first payment from the Woodford Equity Income fund on or around 30th January 2020 (it was previously scheduled to be on 20th January 2020).
Link have stated that:
"This change to the timetable is required to ensure that investors retain exposure to the equity market for the entire period prior to the Fund being wound up as required by the regulations. This delay also allows a significant portion of the Fund's holdings in money market instruments to be liquidated in a way that minimises costs to the Fund.
As a result of the change to the date of the first capital distribution there will be two further changes to the timetable: (i) the calculation of the amount you will receive will now be made on 24 January 2020 (instead of 6 January); and (ii) we will write to you on or around 28 January 2020 to inform you of the amount you will receive as a result of this first capital distribution. That letter will also provide details of the costs associated with the transitioning of the portfolio prior to the winding up of the Fund and the expected costs of the winding up of the Fund. This letter was previously scheduled for 13 January 2020.
In our letters to you dated 15 October 2019 and 13 December 2019, both of which are available at equityincome.linkfundsolutions.co.uk, we explained how the Fund has been split into two portfolios ("A" and "B") and BlackRock Advisors (UK) Limited's ("BlackRock") and PJT Partners (UK) Limited's ("Park Hill") respective roles in assisting us to sell the assets in each portfolio in a way that safeguards value in those assets rather than through a 'fire sale'. This process continues (with the proceeds of sales before 17 January 2020 re-invested in FTSE 100 index instruments, money market funds, government securities and commercial paper with short maturity date to maintain the Fund's exposure to the market). By way of update, since its appointment BlackRock has realised £1.9 billion, representing 90% of the value of Portfolio A and 63% of the value of the Fund and we continue to work with Park Hill to explore opportunities for the sale of assets within Portfolio B.
There will be no change to the dates of the income distribution attributable to the year ending 31 December 2019 (to be paid on 28 February 2020) or the distribution of income covering the period 1 January to 17 January 2020 (to be paid on 17 March 2020)."
For a copy of the letter issued by Link Fund Solutions, please visit the following link https://equityincome.linkfundsolutions.co.uk/media/zivhlb35/lfeif_investor-letter_100120.pdf.
As soon as we have any further information, we will be sharing this in order to keep you updated.
- uploaded - 10 January 2020