Woodford Suspension to continue until at least December 2019

Link Fund Solutions Limited (Link), the Authorised Corporate Director of the LF Woodford Equity Income Fund has formally reviewed the suspension of the fund. It has been anticipated that the suspension is likely to last until early December 2019 whilst the portfolio of assets held by the fund is re-positioned. 

During the latest 28-day period the fund has underperformed. A primary reason for the underperformance was the downward revaluation of Benevolent AI, a UK-based healthcare company that uses artificial intelligence for drug development. This deal brings a new, high quality, long-term investor whose funding will be used to grow Benevolent’s pipeline of internal drug development programmes and collaborations with strategic partners across its key therapeutic areas. 

Neil continues to alter the portfolio founded on a belief that the global economic environment is not as robust as equity markets are suggesting. Identifying situations where price and value diverge has been at the centre of Neil’s investment approach over his entire career – and is underpinning the strategy that he believes is appropriate for the economic and market environment that confronts us.


Key points to note: 

  • Woodford has sold his 142m shares in intellectual property specialist IP Group

  • The sale price of 53.5p per share was some way below the 61p market price

  • Woodford's flagship fund has lost 12.8% since being suspended 

  • Suspended Woodford fund no longer lists all its investments

Read full update here.