LF Woodford Equity Income fund suspension update – March 2020

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Aegon Retirement Choices (ARC) and Aegon Platform update

Following a notification in October 2019 that the LF Equity Income fund (formerly the LF Woodford Equity Income fund) was to be closed, we’ve received a further update from Link Fund Solutions Limited (LFS), the fund’s Authorised Corporate Director.

LFS have informed us that a second portion of underlying investments in the fund have now been sold and LFS will return a second capital distribution (cash proceeds)* equal to approximately 19.9% of assets still held by the fund as at 10 March 2020.

* Investors in a General Investment Account (GIA) may need to consider how this payment affects any Capital Gains Tax calculation.

What this means for investors

For existing investors, all proceeds from the second capital distribution will be added to their cash facility and will remain there unless they, or their adviser, give us a clear instruction to invest in an alternative fund or funds.

The number of units held in the fund won’t change, but the value of any holding will reduce to reflect the cash proceeds that will be paid out.

LFS intend to make further payments as and when suitable amounts of cash have been raised from the sale of assets within the fund. However, the time period for the full closure cannot be guaranteed as some of the assets held by the fund can’t be sold easily or in a controlled manner. The fund manager is seeking to close the fund in a controlled manner which they believe is in the best interests of remaining investors.

We’ll let existing investors know when we receive confirmation from LFS regarding the final closure. However, the fund remains suspended and investors will not be able to buy, sell or transfer units.

Find out more

If you have any questions about this, or how it affects your portfolio, please speak with your financial adviser in the first instance. If you don’t have a financial adviser you can find one in your area via www.moneyadviceservice.org.uk.

Please be aware that we do not offer investment advice.