Woodford Equity Income Fund trading suspension
What does suspension mean?
This means it is currently not possible to buy, sell or transfer holdings within the fund. The decision was taken by the funds Authorised Corporate Director (Link Fund Solutions) who are an independent company who look after and act in the best interests of investors in accordance with the FCA’s regulations.
Will I get my money back?
The suspension is temporary, to allow the fund manager time to undertake the necessary action and repositioning required within the portfolio. At the point at which the suspension is lifted, investors will be able to buy, sell or transfer at the prevailing price at that time. If the price has gone up then the value of your investment will have risen accordingly, the opposite is true if the price has fallen, where the value of your investment will have fallen accordingly.
What happens if I have a direct debit instruction?
If you currently have a direct debit instruction in place, we will continue to collect the appropriate monies from your bank account but no investment will be placed. The money will simply be retained as cash. Should you wish to change that instruction, please inform us accordingly.
Does The Share Centre’s fund of funds invest in this fund?
Both the TC Share Centre Multi-Manager Cautious and Balanced funds invest in this fund. Our funds remain open to investors to buy and sell accordingly. The managers of these funds are monitoring the situation and will take whatever action they deem necessary once the suspension is lifted having thoroughly appraised the situation.
What about the other Woodford Income Focus Fund and Patient Capital Trust?
Both of these investments remain open to investors to buy, sell or transfer accordingly.
Are you still promoting the fund in the Platinum 120?
We have removed the fund from our Platinum 120 which is our preferred list and will review this decision once the suspension is lifted.
Woodford Equity Income Fund & Woodford Patient Capital Trust
As a result of the mounting problems and speculation surrounding Woodford Investment Management, The Share Centre has taken both the Woodford Equity income Fund and Woodford Patient Capital Trust off of its preferred lists.
Following the suspension of trading in the Equity Income Fund, we immediately removed this fund from our Platinum 120 list as it was no longer appropriate. Alongside that decision we have also decided to remove the Patient Capital Trust from our preferred investment trust list given the market pressure and focus now being placed upon it.
We have always been very clear with our view on the manager and his active approach to investment management and the contrarian style he has often adopted. This has led to the fund and trust investing in a number of unquoted and less liquid investments, of which all the attention and focus has been placed upon.
This specific type of exposure that both investments has had has meant that we have always clearly set out the risks this involves and what it brings to them.
We will continue to review the situation in respect of the investment trust alongside the fund and will provide further clarity and updates as and when appropriate.
Link Fund Solutions updated investors on 29 July. In its statement it said it considered that a suspension until December would give the manager time to reposition the fund's portfolio into more liquid assets allowing the process mentioned above to continue. We will keep investors informed as and when the situation changes.