Investors trapped in the fund formerly known as Woodford Income Focus have been told it will reopen with its replacement managers from Aberdeen Standard Investments in mid February.
Thomas Moore and Charles Luke (pictured) are currently repositioning the suspended fund into a high conviction portfolio of 30 names that will seek to deliver a yield higher than the average yield of the FTSE All Share index over a three-year rolling period.
In a letter to investors, Link Fund Solutions managing director Karl Midl said the fund would be a position to reopen on 13 February. Investors would be able to buy and sell shares from noon the previous day, Midl said.
Tilney managing director Jason Hollands said the fund was now in sensible hands, describing Moore and Luke as experienced managers despite poor performance from the former in the last couple of years.
But Hollands added: “It’s a small fund and I’m sure there will be some investors who will want to move on and switch to a manager of their choice, rather than the one Link made for them.”
Luke currently manages the Murray Income Trust and Moore manages the ASI UK Equity Income Unconstrained fund and the Aberdeen Standard Equity Income Trust.
Willis Owen head of personal investing Adrian Lowcock expected the investor base would be mostly retail and to have a mixed response when the fund opened.
Despite new holdings, Lowcock said the fund still had its income mandate. He suggested investors take time to assess the situation rather than rush for the exit.
The fund will face no fees from Link, the fund managers or its depositary, Northern Trust, up until 31 May.
“The resulting savings to the fund will offset some of the costs associated with the repositioning of the portfolio which was necessary to enable the fund to re-open,” the letter said. Further details on these costs would be provided for investors ahead of the fund’s reopening.
