Woodford fund investors warned illiquid holdings to curb future payouts
Investors in Neil Woodford’s frozen fund will receive another £20mn, but face dwindling prospects for recovering more as the downturn in markets cuts the value of the remaining companies backed by the former star stockpicker.
Link Fund Solutions, the administrator overseeing the closure of Woodford’s fund, said in a letter to investors on Thursday that it was ready to pay out another tranche of cash following the sale of the small clutch of equities still held in the fund.
The value of the fund shrank a third between June and September, Link said, as it marked down the price of its remaining portfolio of eight mostly early-stage companies, curbing the amount investors can expect to recover when they are sold.
This story originally appeared on: Financial Times - Author:Joshua Oliver
