LF Equity Income Fund – first payment now expected 30 January

In an update issued today Link Asset Services (Link) announced a change in the timetable for the first payment to investors in the LF Equity Income Fund (formerly the Woodford Equity Income Fund).

Link previously said the first payment would be made on or around 20 January. This is now expected on or around 30 January.

Link also said that details about the value of the first payment were due to be announced on 13 January. They now intend to make this announcement on or around 28 January.

The final valuation of the fund’s assets before it is wound up will still be on 17 January, with the wind-up process beginning the following day. These dates are unchanged from Link’s previous announcement, and the amount unit holders will receive in the first payment will now be calculated on 24 January, instead of 6 January as previously announced.

Link said the change to the timetable was necessary to make sure investors had full exposure to the stock market until the fund was wound up – something which is required by regulation. Link said it will also allow holdings in money market instruments to be sold in a more cost-effective way.

Link confirmed in October it had appointed BlackRock Advisors (UK) Limited and specialist broker Park Hill to help sell the fund’s assets.

BlackRock has been managing the fund’s larger, more liquid stocks in the fund (‘portfolio A’), of which it has now sold £1.9bn. This represents 90% of portfolio A and 63% of the total value of the fund. The proceeds have been invested in FTSE 100 index instruments, government bonds and other liquid assets.

Park Hill is managing the sale of the fund’s harder-to-trade stocks, known as portfolio B.

For those who hold income units in the fund, Link have also confirmed there will be no change to the fund’s income payment dates. The final payment for the year to 31 December 2019 is expected on 28 February, and any income from January is expected to be paid on 17 March.

All payments from the fund will be credited to the HL account in which you hold it. As always, we’ll be in touch as we hear more details from Link.