‘Kick in the teeth’ for Woodford investors as fund loses 12pc from stock writedowns

Investors trapped in the failed Woodford Equity Income fund have been hit with a 12pc loss as they wait for the last of their money back from the sell- off of assets.

Link Fund Solutions, the fund’s administrator, wrote down its value by £23m to £164m last week as it revalued the fund’s remaining hard-to-sell stocks.

Investors in disgraced manager Neil Woodford’s former flagship fund have suffered losses of £900m since the fund, then worth £3.7bn, was suspended in June 2019.

Mr Woodford was sacked as manager later that year as Link decided to liquidate the portfolio.

Link has distributed £2.5bn to investors as the fund’s stocks have been sold, but warned it could take until late this year before they receive the last of their money back.

Ryan Hughes, of fund shop AJ Bell, said the latest loss would be a “kick in the teeth” for the long-suffering investors. Mr Woodford has launched a new firm, Woodford Capital Management Partners, in a bid to manage money for professional investors, focusing on biotechnology companies.

“The news of Mr Woodford’s comeback adds to the misery already suffered by investors,” added Mr Hughes.

A spokesman for Link Fund Solutions said its responsibility was to “always act in the best interests of all investors in the fund”.

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