LF Woodford Equity Income fund update December 2019

Aegon Retirement Choices (ARC) and Aegon Platform update

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

The wind-up of the fund has now been approved by the Financial Conduct Authority (FCA) and will commence on 18 January 2020.

The Open-Ended Investment Company name and fund name will also change to reflect the fact that Woodford Investment Management Limited are no longer the fund manager.

In the meantime, the fund remains suspended while the fund managers look to begin the wind-up of the fund in a controlled manner. They believe this is the best way to protect investors remaining in the fund.

What this means for investors

  • The fund remains suspended which means investors are unable to buy, sell or transfer units in the fund until further notice.
  • All other restrictions placed on the fund in June 2019 remain in place.
  • Winding up of the fund will begin on 18 January 2020.
  • The first capital distributions to investors will begin on or around 20 January 2020.
  • LFS have confirmed there will be further capital distributions as assets are realised as part of the winding-up process.
  • When the distributions begin, any cash received will be applied to the cash facility of the corresponding product wrapper(s).
  • Dividend income payments for the year ending December 2019 will be paid as normal on 28 February 2020.
  • Dividend income covering the period from 1 January 2020 to 17 January 2020 will be calculated and paid on 17 March 2020.
  • Woodford Investment Management (Woodford) no longer manage the fund.
  • To reflect this the company name will change from LF Woodford Investment Fund to LF Investment fund and the fund name will change from LF Woodford Equity Income Fund to LF Equity Income fund.
  • As explained in October 2019, BlackRock UK Advisers Limited (BlackRock) and PJT Partners (UK) Limited have been appointed managers of the fund.
  • Fund charges continue as normal until the fund begins the process of winding-up.

What happens next?

LFS will begin calculating the final values to be paid to investors in early January 2020. They will then begin to notify investors in the fund of the amount per share to be paid in the first capital distribution.

Winding-up of the fund will begin on 18 January 2020 with the first capital distribution to investors on or around 20 January 2020.

We’re in close contact with LFS and we continue to monitor the fund on a daily basis.

In the meantime, any changes will be communicated via the ‘Fund changes and news’ page of our website.

If you have any concerns you can contact us at:

Aegon Retirement Choices (ARC)

Email - clientservices@online.aegon.co.uk
Or call us on 0345 680 1234.

Aegon Platform

Email - aegoncofundsadministration@aegon.co.uk
Or call us on 0345 604 4001.

Call charges may vary.

If you’re contacting us by email please remember not to send any personal, financial or banking information because email isn’t a secure method of communication.