Investors trapped in LF Equity Income (GB00BLRZQ844), the stricken fund once run by Neil Woodford, are due to receive a second cash payout. Link Fund Solutions, the authorised corporate director for the fund, said that a further £141.7m had been generated from the sale of holdings, equivalent to around a fifth of the fund’s remaining assets as of 10 March.
Investors will learn how much they will receive on around 20 March, with payment expected five days later. They received their first payout, representing some three quarters of the fund’s assets at the time, at the end of January.
Link said that, based on its current estimate of the second capital distribution, some £2.3m will have been distributed to investors. The firm added that further payouts would be made on the back of further sales, but warned that the timing of these remained unclear. The remaining assets are illiquid holdings including unquoted companies so could take a significant period of time to sell. Recent market falls and deteriorating economic conditions may not help.
“At this stage we are unable to advise you of the exact timing and amount of these future capital distributions as this is dependent upon the sale of the fund’s assets,” said Link. “Investors should be aware that the assets [which are still] to be sold are less liquid and disposing of them may take longer than was the case for the sales to date.”
The fund will also make one of its scheduled income payments to investors, covering the period from 1 to 17 January, on 17 March.
