Commenting on the latest update from Link on the Woodford Equity Income fund, Ryan Hughes, head of active portfolios at AJ Bell, says:
“Investors will be disappointed by the news that the initial payment will be delayed from the date given in the communication last month but ultimately it’s important the fund is wound up in the appropriate manner. Link has provided a further update on how the liquidation is going and news that BlackRock has now sold down 90% of their element is positive. However, there remains little hint as to the progress that Park Hill are making with the illiquid element of the portfolio and this may be an indication that these disposals are proving to be challenging. Given this represents around one third of the fund, investors should expect the liquidation process to continue for a considerable period.
“With updated performance figures, it is clear to see that even in the wind up of the fund, investors have received no respite from the underperformance of the market, with the portfolio lagging by a further 5% since Woodford was removed as manager of the fund with the bulk of this underperformance coming from the illiquid parts of the portfolio having their value reduced.
“Attention will now focus on the next communication on 28th January when investors will get their first indication of how much the initial payment will be.”