LF Woodford Income Focus fund suspends trading

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Aegon Retirement Choices (ARC) and Aegon Platform update

On Tuesday 15 October 2019, the LF Woodford Income Focus 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, from 11am on Tuesday 15 October 2019 (the last Aegon dealing point), it will be unavailable for selection on your online account and you’ll not be able to buy, sell, switch or transfer units in the fund.

Any switches or payments out of the fund being processed on or after this date will be cancelled. If the fund is part of an instruction for a number of fund switches or withdrawals, then the rest of the instruction will be processed normally, excluding the suspended fund.

Any trades to buy units placed after 11am on Tuesday 15 October 2019 (the last Aegon dealing point) will be redirected into your individual cash facility and will remain there until you give us a clear instruction to switch into an alternative investment, if you wish to do so. This applies to all regular payments, single payments, switches and transfers into and from the LF Woodford Income Focus fund.

Model portfolios

If you hold the fund as part of a model portfolio and the portfolio experiences a rebalance, the LF Woodford Income Focus 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 Income Focus fund will be moved into your individual cash facility, where it will remain until you give us a clear instruction to switch into an alternative investment, if you wish to do so.

Income

If you currently receive an income from your account, any withdrawals due from the LF Woodford Income Focus fund after 11am on Tuesday 15 October 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 the resignation of Woodford Investment Management Limited (Woodford) as investment manager.

LFS stated:

On 15 October 2019, Woodford Investment Management Limited (“Woodford”), the Fund’s appointed investment manager, informed us that it will resign from its role. As a result of this we expect that the redemptions in the Fund will reach a level whereby it may no longer be able to continue to meet redemption requests without prejudicing the interests of both remaining and redeeming investors.

After consideration of all relevant circumstances relating to the Fund’s assets, we have come to the conclusion that it is in the best interests of all investors in the Fund to suspend the issue, cancellation, sale and redemption of shares in the Fund. The period of suspension is intended to protect investors from this anticipated increased level of redemptions in the Fund.’

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@aegon-arc.co.uk or call us on 0345 680 1234.

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.