Advertisement

Woodford investor? Your first payment is coming soon

Private investors left stranded by the collapse of the Woodford Equity Income fund will soon be getting at least some of their money back. But they will have to wait a while longer to see how much more – if any – they will receive.

Neil Woodford

If you’re one of the many private investors who saw a chunk of their savings left stranded by the collapse of Neil Woodford’s firm and reputation last year, then you should have received notification today that you’ll very shortly be getting at least some of your money back.

Link Fund Solutions, the fund’s administrator, has today told investors in Woodford Equity Income – formerly Woodford’s flagship vehicle – how much to expect from their first payment, which is due at the end of this week. 

Advertisement - Article continues below

Depending on the precise class of share held, investors can expect to get between 46.3p per share and just under 59p. The difference in payouts is mainly between “accumulation” and “income” share classes – with the former, the dividends are rolled up as you go along, with the latter, the dividends are paid out.   

As the Financial Times reports, “based on the fund’s value when it was suspended, the latest payment to investors crystallises losses of at least 20%.” 

If you’re a Woodford investor and you’re looking for the letter, you can find it here

The good news is that this isn’t the final payout. In total, the payment represents roughly 74% of the fund’s assets. 

The bad news is that this is the chunk of the fund that was relatively liquid – ie, easy to sell. As Ryan Hughes of investment platform AJ Bell points out, the rest is “trapped in the illiquid, unquoted holdings” that specialist broker Park Hill is trying to sell. 

This won’t be an easy task, and for now, it’s still not clear how much longer investors will have to wait for the rest of their money – or how much they are likely to get back.

Advertisement
Advertisement

Recommended

Neil Woodford rides again
People

Neil Woodford rides again

Neil Woodford’s speedy descent made Icarus look like a slouch. Many thought he would now be spending more time with his horses. He’s actually plotting…
1 Jan 2020
Neil Woodford: no silver lining for his investors
Neil Woodford

Neil Woodford: no silver lining for his investors

Neil Woodford made every mistake it is possible to make as a money manager. And his investors have been stiffed. But however wrong it all went, Woodfo…
24 Oct 2019
ESG investing provides shelter in the storm
Funds

ESG investing provides shelter in the storm

Funds focusing on environmental, social and governance (ESG) issues proved resilient during the market slump.
23 Jun 2020
Asian income stocks: where to find the continent's top money machines
Share tips

Asian income stocks: where to find the continent's top money machines

International dividends shouldn’t only mean companies in the US or Europe – the Far East has plenty of big payouts to offer. Cris Sholto Heaton looks …
22 Jun 2020

Most Popular

An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
Three ideas for Lloyds Bank's new boss
UK stockmarkets

Three ideas for Lloyds Bank's new boss

The Black Horse needs whipping into shape. A change at the top provides a great opportunity, says Matthew Lynn.
12 Jul 2020
Why the moving average is my favourite charting tool
Sponsored

Why the moving average is my favourite charting tool

Traders and technical analysts use "moving averages" to iron out daily fluctuations and give a much clearer picture of a market's direction. Dominic …
13 Jul 2020