Latest update on the LF Equity Income Fund fourth payment …

LF Equity Income Fund

Update on the progress of the LF Equity Income fund’s wind-up

Update as of 30 September 2020

Link Fund Solutions, the Authorised Corporate Director of LF Equity Income Fund, has announced that it intends to make a fourth capital distribution to investors after 30 November 2020, and now expects to finish winding up the fund by mid to late 2021.

As of 1 September 2020, the fund’s remaining assets were valued at £288m, following the first three capital distributions to investors.

The ACD has also published the company reports and accounts.  It  has also disclosed the fees paid from the fund prior to – and following – the start of the winding-up period, which began on 17 January 2020. No annual management charges were applied to the fund after 18 January 2020, though other charges were applied to pay the companies that were engaged in relation to selling the assets.

Update as of 20 August 2020

LF Equity Income Fund third payment details

Link Fund Solutions, the Authorised Corporate Director of LF Equity Income Fund, has announced the amount to be paid as part of the third capital distribution for this fund. The amount per share that will be paid to investors is shown in the table below, and will vary by share class. The payout will appear as cash in your FundsNetwork or Aegon account within a week of the distribution. When this happens, the Platforms will be writing to all their customers invested in this fund to confirm when the payment has been made into your account. It’s likely this will be toward the end of August.

Update as of 13 March 2020

Link Fund Solutions, the Authorised Corporate Director of the LF Equity Income Fund, has announced that it plans to make the second capital distribution payment around 25 March 2020.

It should take a couple of business days to process this payment, and as with the previous one, the value will depend on the number of shares held by each investor. The amount will be calculated on 18 March.

Following the distribution, investors will continue to hold the same number of shares in the fund, but the value of them will be correspondingly lower, and further payments will follow until all assets are realised.

We will be writing to all your affected clients invested in this fund to confirm when the payment has been made to their account.

You can read the official statement for full details of this announcement.

LF Equity Income Fund First Payment
Update as of 28 January 2020

Link Fund Solutions, the Authorised Corporate Director (ACD) of LF Equity Income Fund, has announced the amount to be paid as part of the first capital distribution for this fund. The amount per share that will be paid to investors is shown in the table below, and will vary by share class. The payout should appear as cash in your clients’ accounts within a week of the distribution, which is planned on or around 30 January. Starting next week, we will be writing to all clients invested in this fund to confirm when the payment has been made to their account.

LF Equity Income Fund Closure and Dates
Update as of 10 January 2020

The date of the capital distribution for the LF Equity Income Fund has been moved back to the end of January by the fund’s Authorised Corporate Director (ACD), Link Fund Solutions.

This follows the approval by the Financial Conduct Authority in December for the ACD to close the fund, and means that the first capital distribution will be paid out on or around 30 January, instead of 20 January as originally planned.

The payout should appear as cash in investors’ accounts about three working days after the distribution. As previously noted (below) the value of this capital distribution will depend on the number of shares held by each investor.

Following the distribution, investors will continue to hold the same number of shares in the fund, but the value of them will be correspondingly lower.

You can read the official statement for full details of this announcement.

LF Woodford Income Focus Fund new management

Update as of 20 December 2019

Link Fund Solutions, the Authorised Corporate Director (ACD) of the LF Woodford Income Focus Fund, announced that it has appointed Aberdeen Standard Life Investments Ltd as the investment manager of this fund. Aberdeen will replace Woodford as the investment manager on 31 December 2019, and the fund will be renamed accordingly to the LF ASI Income Focus Fund.

Aberdeen intends to re-position the fund’s portfolio in a way it considers will best add value for investors, and will actively seek to grow the assets in the fund and to attract additional investments.

The ACD believes that based on assurances it has received from Aberdeen, the best interests of investors (those who wish to retain their holding and those who wish to redeem their holding) will be met by re-opening the fund.  The ACD expects to provide an update on progress in January 2020, with a date for when it expects to resume dealing in the fund.  Aberdeen, the ACD and the depositary (Northern Trust Global Services SE) will waive their fees until 31 May 2020, though some additional portfolio transaction costs will be incurred as a result of selling and buying assets to re-position the fund.

You can read the official statement for full details of this announcement.

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