• 05 January 2024

    LF Woodford Equity Income - update on suspension and closure

    We would like to make you aware of the settlement scheme (“the Scheme”) which has been set up in response to the suspension of the LF Equity Income Pension fund (“the Fund”), previously known as the LF Woodford Equity Income Fund.

    What’s happening?

    The fund has been suspended since 3 June 2019. Link Fund Solutions Limited (“Link”), the authorised corporate director of the Fund, proposed a settlement scheme which will offer to settle any potential claims which any Scheme Creditors (i.e., relevant investors in the Fund) may have in connection with the Fund’s suspension.

    What is the Scheme?

    The Scheme is a Scheme of Arrangement which is an agreement between a company and some or all of its creditors. For the Scheme of Arrangement to become established and effective it had to be approved by the creditors affected and the court.

    If established, the Scheme will be used to make payments to relevant investors that hold units in the fund.

    You can find more information about the scheme on their dedicated website.

    Do I need to do anything if I’m invested in this fund?

    You don’t need to take any action. As the beneficial owner of the LF Equity Income Fund assets, we voted on behalf of our insured fund members in favour of establishing the scheme as the recognised scheme creditor. 

    In their communication about the redress scheme issued on the 15th November the FCA continues to consider that the Scheme offers investors the quickest and best chance to obtain a better outcome than might be achieved by any other means.  

    You can read the full FCA communication.

    What is the current timetable? 

    Link are expecting the Scheme to become fully effective on or around 9 February 2024. If the Scheme becomes effective, the first payment is expected to be made in the first quarter of 2024.

    You can find more information on the full timetable on the Scheme’s FAQ webpage

    Where can I get more information?

    You can find out more information about the scheme on their dedicated website. The site will be updated with relevant announcements and documents as the Scheme progresses.