Woodford Income Focus – Link considers options for fund

Emma Wall | Wed 30 October 2019

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Link Asset Services (Link) confirmed this morning that it is considering various options for the Woodford Income Focus Fund. Link, Woodford Income Focus Fund’s Authorised Corporate Director announced earlier this month that it would be suspending trading in the fund from 15 October until further notice.

Link said it has taken the decision to suspend trading in the Fund in anticipation of redemptions following the resignation of the fund manager.

Since the suspension two weeks ago, Link has been considering options for the future of the fund. These include appointing an alternative fund manager, transferring the fund’s assets into another fund, or, if neither of these options are available, winding-up the fund.

Link has appointed an independent research firm to help find alternative fund managers who may be suitable to run the fund.

Link said today:

“…we are currently considering indications of interest from several investment managers. We have also asked a leading independent investment research firm to help us to identify any other investment managers that may be suitable to assume the role of investment manager of the Fund. We will look to conclude this process in the coming weeks and decide whether this is a viable option”

If Link decides instead to transfer the fund’s assets into another fund, it says it will give investors the chance to vote on the proposal.

If neither a new manager nor a suitable receiving fund can be found, Link will “look to wind-up the Fund through a process of an orderly realisation of the Fund’s assets”. Changes would be subject to regulatory approval by the Financial Conduct Authority.

While Link considers its options, the fund will continue to be suspended. While the fund is suspended, Link will continue to calculate and publish the net asset value per share each day.

Link says it will cease suspension of the Woodford Income Focus Fund as soon as possible once it has determined which course of action is in investors’ best interest.

It will keep shareholders updated with news regarding the suspension, and the outcome for investors in the fund.

We will keep you up to date on Link’s plans for the fund as we know more.