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. 

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.

Recommended

Neil Woodford’s back – but has he really learned anything?
Neil Woodford

Neil Woodford’s back – but has he really learned anything?

Disgraced fund manager Neil Woodford is planning a comeback. But he doesn’t seem to have learned much from his many mistakes. So why would anyone inve…
22 Feb 2021
Neil Woodford’s back – but sometimes sorry isn’t enough
Neil Woodford

Neil Woodford’s back – but sometimes sorry isn’t enough

Neil Woodford’s funds blew up in 2019. Now he is on the comeback trail. But his apologies are unconvincing.
19 Feb 2021
Should we adjust our all-weather ETF portfolio for inflation?
ETFs

Should we adjust our all-weather ETF portfolio for inflation?

It’s too early to batten down the hatches for our ETF model portfolio, but price pressures are increasing.
12 May 2021
Three commercial property funds that go beyond offices and shops
Property

Three commercial property funds that go beyond offices and shops

When it comes to commercial property, these three real-estate investment trusts in promising niches look most appealing, says David Stevenson.
11 May 2021

Most Popular

How will Joe Biden’s capital gains tax rise affect crypto prices?
Bitcoin & crypto

How will Joe Biden’s capital gains tax rise affect crypto prices?

The US president wants to increase capital gains tax – and that’s going to hit a lot of American cryptocurrency speculators. Saloni Sardana looks at h…
14 May 2021
Are we nearing the end of the negative bond yield era?
Government bonds

Are we nearing the end of the negative bond yield era?

As inflation gets going, the era of the negative bond yield – that investors have to pay governments for the privilege of lending them money – might b…
14 May 2021
Inheritance tax planning: the rules around gifting
Inheritance tax

Inheritance tax planning: the rules around gifting

There are plenty of legal ways to minimise an inheritance tax bill. Perhaps the simplest is to give away assets to reduce the size of your estate. Dav…
11 May 2021