01382 573737

Mon to Fri 8am-5pm

Important update on Woodford Equity Income Fund & Woodford Income Focus Fund

Woodford Equity Income Fund to wind up as soon as practicable

latest update from Woodford - 1 October 2020

Please read here.

Notification of payment of third capital distribution - updated 21 August 2020

The third capital distribution from the winding up of the Fund will be paid to ATS on or around 26th August 2020. The amount distributed as part of this third capital distribution is £183.15 million. When added to the amount paid in first and second capital distribution, the fund has now returned £2.45 billion to investors.

Investors on the ATS platform will receive their payment into their Account a few days later once we have processed all allocations.

Details of the distribution rates per share class are shown in the table below.

Share Class Name Fund ISIN Code Pence per share
LF Equity Income Fund (A Sterling Inc Shares) GB00BLRZQ406 4.1033p
LF Equity Income Fund (A Sterling Acc Shares) GB00BLRZQ513 4.9936p
LF Equity Income Fund (C Sterling Inc Shares) GB00BLRZQ620 4.1598p
LF Equity Income Fund (C Sterling Acc Shares) GB00BLRZQ737 5.0584p
LF Equity Income Fund (X Sterling Inc Shares) GB00BLRZQ844 4.0033p
LF Equity Income Fund (X Sterling Acc Shares) GB00BLRZQ950 4.8679p
LF Equity Income Fund (Z Sterling Inc Shares) GB00BLRZQB71 4.1815p
LF Equity Income Fund (Z Sterling Acc Shares) GB00BLRZQC88 5.0869p
LF Equity Income Fund (F Sterling Acc Shares) GB00BZ01L372 3.9979p

Investors should be aware that the receipt of their proceeds from the winding up of the Fund will be deemed to be a part disposal of their shares in the Fund for capital gains tax purposes and may, depending on their personal circumstances, give rise to a capital gains tax liability. If investors are in any doubt as to the taxation consequences of this action they should seek professional advice.

The impact of this capital distribution will be reflected in the Net Asset Value of the fund on the payment date, on 26th August 2020. This means that the number of shares that investor’s hold in the Fund will remain the same but the price per share will reduce to reflect the value paid out of the fund on that date.

Further information can be found here.


Third capital distribution - updated 29/07/2020

Link Fund Solutions Limited (LF) has reached an agreement with Acacia Research Corporation (“Acacia”) for the sale of an agreed selection of up to 19 of the Fund’s healthcare assets in return for up to £223.9 million.

As the transfer of assets from the Fund to Acacia has now commenced, the Fund has received part of the purchase price in accordance with the terms of the sale agreement. Together with amounts received by the Fund for the sale of other assets not included in the transaction with Acacia, this means LF will shortly be able to make a further distribution to investors.

As at 22 July 2020 the Fund holds c.£58m million of cash available to be distributed to investors. However, it is anticipated that this amount will increase over the next three weeks as further amounts are received from Acacia and, therefore, it makes sense to make a single distribution of all those amounts rather than a series of smaller distributions over a short period of time.

A further update will be provided on or around 19 August 2020, detailing the total amount that will be available for this third capital distribution which will include the amounts received up to 19 August 2020. On or around 21 August 2020 details will be provided of how much investors will receive as their share of the total capital distribution and confirmation of the date on which the payment will be made, with payment to follow shortly thereafter.

Further information can be found here.


Link Fund Solutions Limited (LF) have agreed to sell a significant portion of the Fund’s remaining assets - updated 16/06/2020

In previous communications LF have explained how the Fund’s assets were split into two portfolios, with Portfolio A comprised of listed assets and Portfolio B comprised of the Fund’s unlisted and certain highly illiquid listed assets. LF can now confirm to investors in the Fund that they have reached agreement with Acacia Research Corporation (“Acacia”) for the sale of an agreed selection of up to 19 of the Fund’s healthcare assets in return for up to £223.9 million. The assets to be sold to Acacia are from Portfolio A and Portfolio B.

Under the terms of the agreement with Acacia, the formalities associated with the sale of these assets could, in some cases, take up to six months to complete and LF will keep us informed of progress in relation to that process. This agreement with Acacia will enable further capital distributions to be made to investors in due course. The date cannot be confirmed but an update will be made no later than 29 July 2020.

Further information can be found here.


Notification of payment of second Capital Distribution to investors - updated 23/03/2020

Link Fund Solutions Limited (“LFS”) wrote to all investors in the Fund on 20 March 2020 to advise them of the amount being paid to them in relation to the second capital distribution payment from the winding up of the Fund. The amount distributed as part of this second capital distribution is £143.2 million. When added to the amount paid in first capital distribution of £2.124 billion, they have now returned £2.267 billion to investors.

Share Class Name Fund ISIN Code Pence per share
C Sterling Accumulation GB00BLRZQ737 3.9542p
C Sterling Income GB00BLRZQ620 3.2518p

The capital distribution will be reflected in the Net Asset Value of the fund on the payment date, on 25th March 2020. This means that the number of shares that investor’s hold in the Fund will remain the same but the price per share will reduce to reflect the value paid out of the fund on that date. It is intended that further distribution payments will be made as and when suitable amounts of cash have been raised from the sale of the assets of the Fund. The exact timing and amount of this distribution is dependent upon assets being realised within the Fund.

Investors should be aware that the receipt of their proceeds from the winding up of the Fund will be deemed to be a part disposal of their shares in the Fund for capital gains tax purposes and may, depending on their personal circumstances, give rise to a capital gains tax liability. If investors are in any doubt as to the taxation consequences of this action they should seek professional advice.


Notification of payment of first Capital Distribution to investors

Link Fund Solutions Limited (“LFS”) as the Authorised Corporate Director ("ACD") of the Fund, advised that the Fund formally moved into wind-up on 18 January 2020 and has now provided details of the first capital distribution payable from the proceeds of the sale of the assets of the Fund. This will be processed and paid into your account as soon as possible after the 30 January 2020.

Share Class Name Fund ISIN Code Pence per share
C Sterling Accumulation GB00BLRZQ737 58.6631p
C Sterling Income GB00BLRZQ620 48.2426p

This first capital distribution will be reflected in the Net Asset Value of the fund on the payment date, being on or around 30 January 2020. This means that the number of shares that you hold in the Fund will remain the same but the price per share will reduce to reflect the value paid out by way of the first capital distribution of the fund on that date.

Further information can be found here.

LF ASI INCOME FOCUS FUND (FORMERLY NAMED THE LF WOODFORD INCOME FOCUS FUND)

Standard Life Investments Limited, trading as Aberdeen Standard Investments (“ASI”), was appointed as the new investment manager of the Fund (previously Woodford Investment Management Limited) on 31 December 2019. Since that date ASI has been working to re-position the Fund’s investments into a portfolio that ASI considers is best placed to add value for investors.

LFS and ASI have been monitoring progress and are now of the opinion that the Fund’s portfolio is in a position to enable the fund to re-open on 13 February 2020. With effect from that date the suspension of dealings in the shares of the Fund will be lifted and it will again be possible for you to buy and sell shares in the Fund.

Key Points
  • You will be able to buy and sell shares from midday on 12 February 2020 in the same ways as was the case prior to the Fund’s suspension.
  • The first valuation of the Fund following its re-opening will be at midday on 13 February 2020.
  • All applications to buy or sell shares received from midday on 12 February 2020 will be processed at the share price calculated, based on the net asset value per share, at the valuation point at midday on 13 February 2020.

Full information is available here.