AJ Bell press comment – 6 October 2022
Head of investment partnerships at AJ Bell, Ryan Hughes, comments on the latest redistribution payment set to be made to Woodford fund investors:
“Investors will be pleased to see news of a further distribution from the former Woodford Equity Income fund, as Link continues to try and wind up the fund. This £20m payment represents roughly 25% of the remaining balance of the fund and will be the fifth distribution since the process of winding up the fund began around three years ago.
“However, this of course leaves a further £60m of assets in a number of unlisted companies that still need to be sold. With market volatility high and the economic outlook challenging at best, given these companies have not been sold in the past three years, it is unlikely these final positions will be sold quickly, unless Link is prepared to accept a discount to the current valuation.
“Winding up the fund was always likely to be a challenge and it has certainly proven to be the case. With recent news of the FCA looking at fining Link for its failure to manage liquidity effectively, it feels like events are moving forward a little quicker than before. Investors will be glad to see this after such a long, drawn out process, although it seems there are still plenty more twists and turns in this sorry saga.”