As Neil Woodford’s fund is wound up thousands of investors are to learn what they will receive, with many only getting half of their initial investment.
After making disastrous decision the Woodford Equity Income Fund which attracted around £10bn in investments collapsed in June 2019.
Investors are set to only receive between 46p and 59p per share they own, this will depend on what kind of shares the investor initially bought.
Payments will hit peoples bank account on Thursday, Link Fund Solutions who sold off assets to return cash to investors said.
Karl Midl, the managing director of Link said, “LFS [Link Fund Solutions] will write to you, under separate cover, with an explanation of how this first capital distribution has been calculated and to provide an update in relation to other matters concerning the winding up of the fund.”
There is still a remaining 30% of the fund’s assets to sell which will be difficult and will now fall to investment bank Park Hill to find buyers.
Ryan Hughes, the head of active portfolios at AJ Bell, a stockbroker said. “Selling the liquid holdings was the easy bit.
“For Park Hill, it is a hugely challenging task to sell the illiquid holdings in a timely fashion and investors still remain in the dark as to how long they will have to wait for the remainder of their money, and importantly, how much they are actually likely to get back.”
Shadow chancellor John McDonnell reiterated his call for an independent inquiry, including the role of the regulator.
McDonnell said, “Many small investors who were simply seeking a secure investment for their pension have been hurt by the failure of Woodford.”