Investment platform Fidelity is no longer allowing its users to put money into LF Woodford Income Focus Fund (GB00BD9X7109), although it remains open to trading. “We believe this is in the best interests of our platform clients unless and until uncertainties are resolved,” stated Fidelity. “We are not restricting withdrawals from Woodford Income Focus, and the restrictions are a temporary and precautionary measure. This does not affect Woodford Patient Capital Trust (WPCT).”
LF Woodford Income Focus, a smaller fund with a higher income objective, has been experiencing an increasing pace of withdrawls since the suspension of LF Woodford Equity Income (GB00BLRZQB71). At the end of April the fund had assets under management worth £552.5m, but as of 10 June this had fallen to £393.95m, according to research company Morningstar. A spokesperson for Woodford Investment Management said that this was mainly due to investors pulling their money out of the fund, but also performance.
The outflows have since continued and investors withdrawing their money include Hargreaves Lansdown Multi-Manager High Income Fund (GB00BYZ0ZK75), which has divested its holding. This was worth 8.2 per cent of the fund’s assets, or about £47m at the end of April.
As of 18 June, LF Woodford Income Focus’s assets under management had fallen to £316.62m.
