UK (Commonwealth Union)_ LFS informs investors in a letter that it would follow up with them to finalize the final distribution amount at the beginning of November. Since the LF Woodford Equity Income Fund’s winding up process began, LFS predicts that a total of £2.56 billion will have been given to investors.
Investors will be happy to hear of a new dividend from the old Woodford Equity Income fund, as Link continues to attempt to wind up the fund, according to AJ Bell’s head of investment partnerships, Ryan Hughes. This £20 million payment will be the seventh distribution made since the fund’s winding down procedure got under way almost three years ago. It represents about 25% of the fund’s remaining balance. Shares in Atom Bank, Benevolent AI, Freevolt (formerly known as Drayson), Mafic, Nexeon, Origin, RM2, and Rutherford make up the remaining assets of the fund. It also holds money that has been kept in cash since the fund’s fourth capital distribution from the sale of assets.
Due to this assets’ illiquidity, LFS issued a warning that the sales of certain assets would be challenging. LFS anticipates that some of these assets could not be sold until the middle of 2023. Since these firms haven’t been sold in the last three years and the market volatility is significant, the company wrote in its letter: “Except Link is willing to take a haircut to the present valuation, it is doubtful that these final investments will be sold shortly.”
Link Group was been given a £50 million fine warning by the Financial Conduct Authority for its role in the demise of the LF Woodford Equity Income Fund. The £50 million amount is stated without any reductions for quick payment. The notification also outlines the potential £306 million in reparations Link may be compelled to pay. LFS stated last month that it was looking at “all possibilities” in the event that a warning letter was sent to it.
