Link has revealed it has freed up £1.65bn from the liquid assets in the Woodford Equity Income fund but is keeping mum on progress in the sale of unquoted stocks in the portfolio.
In a letter to unitholders, which coincides with the results of UK general election, Link said Blackrock, which is responsible for the liquid part of the fund, has sold 79% of the portfolio it is responsible for. The cash realised has been re-invested in FTSE 100 index instruments, money market funds, government securities and commercial paper with short maturity date.
The remaining 21% of the portfolio is in “generally less liquid stocks than those assets sold so far”, managing director Karl Midl told Woodford Equity Income investors, who have been trapped in the fund since June.
The authorised corporate director provided no detail on progress in the unquoted holdings that are being managed by Park Hill.
“We and Park Hill continue to explore opportunities for selling the Portfolio B assets while maximising the return for investors. However, at this stage we are unable to confirm when these assets will be sold.
“We will provide further updates on the progress of the sale of the remaining assets and dates for the subsequent capital distribution to investors until the process is complete.”
The Blackrock sales in total only represent 56% of the Woodford Equity Income fund.
A timeline for Woodford Equity Income investors
Link will calculate the first capital distribution on 6 January with investors receiving their first payment on 20 January, or several days later if they are invested via a platform.
Income distributions will continue with payments due on 31 December, 28 February and 17 March. Link noted the fund’s annual report will come out on 30 April 2020.
Effective today, the fund becomes the LF Equity Income fund as the FCA grants approval for a name change.
