Neil Woodford

LF Woodford Equity Income Fund Suspension Extension

Link’s decision to continue with the suspension of investor dealing in the Equity Income fund is to ensure investors’ interests are protected. It affords Neil and the team the required time to execute the investment strategy that will deliver the best possible outcomes for you, our investors.

Q1 hedge fund letters, conference, scoops etc

We understand the frustration, inconvenience and anxiety that the suspension of the LF Woodford Equity Income Fund is causing you. Many of you have raised questions regarding the suspension and this update includes a Q&A style video where Neil addresses the most frequently asked and pressing questions we have received from clients and investors.

We will continue to keep you updated on the progress Neil is making on repositioning the fund for reopening. In the meantime, please keep sending us your questions.

Fund Suspension: Your Questions Answered


Dear Investors,

THIS LETTER IS IMPORTANT – PLEASE READ

LF Woodford Equity Income Fund (a sub-fund of LF Woodford Investment Fund, an Investment Company with Variable Capital) (the “Fund”)

As authorised corporate director (“ACD”) of the Fund, we are writing to you to provide an update to our letter of 4 June 2019 which informed you that dealings in the Fund were suspended with effect from 3 June 2019. This letter is for information only, and no action is required.

As set out in our previous letter, dealings in the Fund were suspended after we concluded that redemptions had reached a level whereby the Fund would no longer be able to continue to meet redemption requests without prejudicing the interests of any investor. We believe that, as a “forced seller” of its assets to meet redemptions, the values received by the Fund for such assets may have been adversely impacted and the Fund might not have received full value from such sales.

After consideration of all current circumstances relating to the Fund, we have, in conjunction with Northern Trust Global Services SE, UK Branch, the Fund’s Depositary, concluded that it remains in the best interests of all investors in the Fund to continue the suspension of the issue, cancellation, sale and redemption of shares in the Fund.

The Fund’s investment manager, Woodford Investment Management Limited (“Woodford”), has been taking steps to reposition the Fund’s portfolio to realise the unquoted and less liquid stocks and invest in more liquid investments. This has continued since dealings in the Fund were suspended and Woodford continues to invest in opportunities in order to meet the Fund’s investment objectives.

We will continue to monitor the situation on a daily basis to consider whether the exceptional circumstances described above continue to justify the suspension of dealings. In accordance with the Fund’s Prospectus, we and the Depositary will formally review the suspension at least every 28 days and will inform the FCA of the review and any change to the information given to shareholders.

During the period of suspension we will continue to calculate and publish the Net Asset Value per share on a daily basis for information purposes only, as during the suspension no requests to issue, cancel, purchase or redeem shares will be accepted. This information can be found on the Link Fund Solutions’ website at woodford.linkfundsolutions.co.uk (or alternatively at www.linkfundsolutions.co.uk – please click on the “Fund Information” section and select “LF Woodford Investment Fund” under “Select Fund Group”).

We understand that the suspension of dealings may be causing concern to you as an investor in the Fund. We can assure you that we are striving to do all we can to bring further clarity to the situation as soon as possible. All decisions will continue to be taken in the best interests of investors. We expect to be in a position to provide further information to investors on the next steps in relation to the Fund before the next 28 day review, being 29 July 2019.

In the meantime we have placed a frequently asked questions and answers document on our website (see above link).

If you have any questions regarding this suspension of dealing please contact us on 0333 300 0381 or alternatively email us at info@woodfordfunds.com.

Yours sincerely

Karl Midl

Director – Link Fund Solutions Limited


What are the risks?

  • The value of the fund and any income from it may go down as well as up, so you may get back less than you invested
  • Past performance cannot be relied upon as a guide to future performance
  • The ongoing charges figure is charged to capital, so the income of the fund may be higher but capital growth may be restricted or capital may be eroded
  • The fund may invest in other transferable securities, money market instruments, warrants, collective investment schemes and deposits – some of these security types could increase the fund′s volatility and increase the level of indirect charges to which the fund is exposed
  • The fund may invest in overseas securities and be exposed to currencies other than pound sterling – as a result, exchange rate movements may cause the sterling value of investments to decrease or increase
  • The fund may invest in unquoted securities, which may be less liquid and more difficult to value, because they are generally not publicly traded – the lack of an open market may also make it more difficult to establish fair value

Important Information

Before investing, you should read the Key Investor Information Document (KIID) for the fund, and the Prospectus which, along with our terms and conditions, can be obtained from the downloads page or from our registered office. If you have a financial adviser, you should seek their advice before investing. Woodford Investment Management Ltd is not authorised to provide investment advice.

This communication is confidential to the intended recipient only. Any views expressed are those of the individual sender. It is for information purposes only and not a recommendation to buy or sell a product or service. Woodford Investment Management Ltd is authorised and regulated by the Financial Conduct Authority.

Our mailing address is:

Woodford Investment Management Ltd, 9400 Garsington Rd, Oxford, OX4 2HN United Kingdom


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