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  • HL Multi-Manager Funds – Update on LF Equity Income Fund (formerly Woodford Equity Income)

    We look at how the wind up of the LF Equity Income fund impacts the HL Multi-Manager range.

    Important notes

    This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

    On 14 December, investors in the LF Equity Income Fund (the Fund) received a fourth capital distribution of £98m as part of the wind up of the Fund. This latest distribution brings the total returned to unit holders at £2.5bn and will leave around £191m of stocks still to be liquidated.

    Following this fourth distribution, the exposures to the Fund in the HL Multi Manager funds has fallen. In the six MM funds which have investments in the Fund, five now have an exposure of less than 0.5%.

    As at 14 December 2020, the total invested in the LF Equity Income Fund is 0.38% of the total value of the ten HL Multi-Manager funds. It is held in six of the portfolios; it makes up 0.25% of Balanced Managed, 0.26% of Special Situations, 0.91% of Income & Growth, 0.44% of Equity & Bond, 0.46% of UK Growth and 0.16% of Strategic Assets.

    While investors in the LF Equity Income Fund cannot currently buy or sell units, trading the Multi-Manager portfolios is not restricted and you can buy and sell the portfolios as normal.

    What happens next?

    We will keep clients informed of further information and when we expect further money to be returned.

    You do not have to take any action – the fund managers will continue to deploy the cash as it comes in as quickly and efficiently as possible, and will make decisions on where the best value can be found for our clients at the time.

    As always we’re determined to deliver the best long-term outcomes for investors in our Multi-Manager funds. We will keep you updated of any significant changes.

    The HL Multi-Manager Funds are managed by HL Fund Managers Ltd.

    Important notes

    This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

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