LF Woodford Equity Income fund suspends trading

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Aegon Retirement Choices (ARC) and Aegon Platform update

On Monday 3 June 2019, the LF Woodford Equity Income fund suspended trading until further notice.

This fund is an Open Ended Investment Company (OEIC) offered across our Aegon Retirement Choices (ARC) and Aegon Platforms.

What this means for investors

If you currently invest in this fund, it will be unavailable for selection on your online account and you’ll not be able to buy, sell or transfer units in the fund until it resumes trading.

Any trades to buy units placed after 11am on Friday 31 May 2019 will be redirected into your individual cash account facility and will remain there until you give us a clear instruction to switch into an alternative investment. This applies to all regular payments, single payments, switches and transfers into and from the LF Woodford Equity Income fund.

Model portfolios

If you hold the fund as part of a model portfolio and the portfolio experiences a rebalance, the LF Woodford Equity Income fund will be excluded and the remaining funds will be rebalanced proportionally.

Regular and single payments into model portfolios can continue, however the portion for the LF Woodford Equity Income fund will be redirected into your individual cash account facility.

Income

If you currently receive an income from your account, any withdrawals due from the LF Woodford Equity Income fund after 11am on Friday 31 May 2019 will be rejected. Alternative arrangements will need to be made by your adviser to withdraw from other investments held within your account.

Why this happened

Link Fund Solutions (LFS), the fund’s Authorised Corporate Director (ACD), decided to suspend trading in the fund to protect existing investors following increased redemptions (payments out) from the fund.

LFS stated:

‘After consideration of all relevant circumstances relating to the Fund’s assets, we have, in conjunction with Woodford Investment Management Limited (“Woodford”), the appointed Investment Manager, come to the conclusion it is in the best interests of all investors in the Fund to suspend the issue, cancellation, sale, redemption and transfer of shares in the Fund.

Following an increased level of redemptions, this period of suspension is intended to protect the investors in the fund by allowing Woodford… time to reposition the element of the fund’s portfolio invested in unquoted and less liquid stocks, in to more liquid investments.’

The full statement from LFS can be found via the Woodford Investment Management website.

Find out more

We recognise that this may be a concern for you so if you have any questions regarding how the above affects your portfolio, you should contact your financial adviser in the first instance.

Alternatively, for Aegon Retirement Choices (ARC) investors please contact us at clientservices@online.aegon.co.uk or call us on 0345 608 1680.

For Aegon Platform investors, please contact us at aegoncofundsadministration@aegon.co.uk or call us on 0345 604 4001.

Please be aware that we do not offer investment advice.

If you have any questions regarding the content of the above, you can also contact Woodford Investment Management Ltd directly on 0333 300 0381 (office hours are 9am to 5pm, Monday to Friday).