The date investors trapped in the Woodford Equity Income fund will receive their first capital distribution once the fund’s winding up process has begun has been pushed back to 30 January, Link Fund Solutions said.
In a letter to unitholders, Link said the winding up process was still on track to begin on 18 January, with the final valuation of the fund's assets before the process continues happening on 17 January.
However, they changed the date investors would receive their first payment to "on or around 30 January", from "on or around 20 January".
Those invested through fund platforms, such as Hargreaves Lansdown, would receive their payment a few days after this date "due to the time it may take for your platform to process your payment", Link noted.
"This change to the timetable is required to ensure that investors retain exposure to the equity market for the entire period prior to the fund being wound up as required by the regulations," said Link's managing director Karl Midl.
"This delay also allows a significant portion of the fund's holdings in money market instruments to be liquidated in a way that minimises costs to the fund."
As a result of the change, Link added the calculation of the amount investors would receive would now be made on 24 January, instead of 6 January as previous communicated.
In addition, investors will be informed of the amount their first capital distribution will be worth on or around 28 January.
"That letter will also provide details of the costs associated with the transitioning of the portfolio prior to the winding up of the fund and the expected costs of the winding up of the fund."
Link added that BlackRock had now sold off 90% of the liquid portion of the fund, which accounts for 63% of total assets and has raised £1.9bn.
This cash has been reinvested into FTSE 100 index instruments, money market funds, government securities and commercial paper with short maturity date to maintain the fund's exposure to the market".
It said it continued to work with Park Hill to explore the sale of assets within the illiquid, or unlisted, part of the portfolio.
Since the fund was suspended in June, Link said it had lost 14.9% of its value, compared to its FTSE All-Share benchmark's 9.4% gain. Since the winding-up of the fund was announced in October, the fund has gained 1.2%, compared to its benchmark's 6.2%.
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