Neil Woodford’s former flagship fund will start to return capital to investors this month, but the first payment will be later than expected. Link Fund Solutions, the authorised corporate director for the fund, which is now called LF Equity Income (GB00BZ01L372), said a final valuation of the fund’s assets would take place on 17 January – as originally planned – and that the wind-up would start the next day. But the first payment of capital to investors is now expected to be on or around 30 January, rather than around 20 January.
“We intended that investors in the fund would receive their first payment on or around 20 January 2020," said Link. "This date will now be on or around 30 January 2020. This change to the timetable is required to ensure that investors retain exposure to the equity market for the entire period prior to the fund being wound up as required by the regulations. This delay also allows a significant portion of the fund’s holdings in money market instruments to be liquidated in a way that minimises costs to the fund.”
The calculation of the amount investors are due to receive will be made on 24 January rather than 6 January, as originally planned. Link will write to investors in LF Equity Income to inform them how much this will be on 28 January. Link has also outlined other key dates for the fund, as shown in the table below. These include its income payments and the publication of its 2019 annual report.