Kate Marshall 4 June 2019
- Dealing in Woodford Equity Income has been suspended by the fund’s Authorised Corporate Director
- Dealing in Woodford Patient Capital is unaffected by the suspension
- We'll keep investors informed of any further developments
Dealing in the Woodford Equity Income Fund has been suspended for up to 28 days, effective immediately. Investors in the fund won’t be able to buy or sell units until the suspension has been lifted.
Shares in Woodford Patient Capital fell on the news. However, dealing in the trust is unaffected by the suspension. Investors are still able to buy and sell shares in the trust as usual.
What has happened?
Dealing in the Equity Income fund was suspended by Link Fund Solutions, the fund’s Authorised Corporate Director, to protect existing investors following concerns about redemptions.
The fund has fallen in size over the last year, due to poor performance and investor outflows. A significant reduction in fund size jeopardises manager Neil Woodford’s ability to run the fund effectively. Link has taken action in order to protect investors who wish to remain in the fund, who could otherwise be negatively affected by fund redemptions.
What happens next?
Woodford Equity Income will be reviewed in 28 days by Link who will report to the regulator and determine whether the trading suspension should be lifted or renewed.
We will continue to talk with Woodford, Link Fund Solutions and the regulator in order to ensure you are kept up to date with developments, and any impact this might have on Patient Capital.