Dealing in Neil Woodford’s other income fund, Woodford Income Focus, has been suspended with immediate effect.
Fund administrators Link Fund Solutions, the authorised corporate director (ACD) of the fund, released a statement confirming that investors are now blocked from withdrawing their money.
It comes after yesterday's announcement that the Woodford Equity Income Fund would close and Neil Woodford removed as manager.
Woodford Investment Management, which set up and ran both the Equity Income and Income Focus funds as well as the Woodford Patient Capital (WPCT) investment trust, announced last night that it would shut down.
In a letter to investors today regarding Woodford Income Focus, Link said, ‘After consideration of all relevant circumstances relating to the Fund’s assets, we have come to the conclusion that it is in the best interests of all investors in the Fund to suspend the issue, cancellation, sale and redemption of shares in the Fund.
‘The period of suspension is intended to protect investors from this anticipated increased level of redemptions in the Fund.
‘The ACD considers that, as a “forced seller” of its assets to meet redemptions, the values received by the Fund for such assets might be adversely impacted and the Fund might not receive full value from such sales.
‘This may affect the value that investors remaining in the fund receive for their shares.’
During the Income Focus fund suspension, Link said it will consider different options, including the possible appointment of an alternative investment manager, or a scheme of arrangement into another fund, or a winding-up of the fund.
It added that whilst it considers these options, Woodford Investment Management has ‘committed to continue to work collaboratively’ with Link in its capacity as the appointed investment manager of the fund.
Link said it expects to write another letter to investors within the next 14 days.
