The Woodford Equity Income fund has lost £31.2m of its net asset value after one of its holdings, Benevolent AI, saw its share price fall by 51%.
In an announcement to shareholders, managing director of Link Fund Solutions, Karl Midl, confirmed details of the latest capital distribution to investors as part of the fund’s winding up process.
£20m of the fund’s remaining £79.9m will be distributed to investors in the 5th round of capital distribution.
The fund’s value has fallen from £118.6m on 15 June to £79.9m on 30 September.
Ryan Hughes, head of investment partnerships at AJ Bell, said: “Investors will be pleased to see news of a further distribution from the former Woodford Equity Income fund, as Link continues to try and wind up the fund… However, this of course leaves a further £60m of assets in a number of unlisted companies that still need to be sold.
“With market volatility high and the economic outlook challenging at best, given these companies have not been sold in the past three years, it is unlikely these final positions will be sold quickly, unless Link is prepared to accept a discount to the current valuation.”
After struggling with significant outflows, the fund was initially suspended, before the decision was made for the fund to be wound down on 15 October, 2019.
Hughes added: “Winding up the fund was always likely to be a challenge and it has certainly proven to be the case. With recent news of the FCA looking at fining Link for its failure to manage liquidity effectively, it feels like events are moving forward a little quicker than before.
“Investors will be glad to see this after such a long, drawn out process, although it seems there are still plenty more twists and turns in this sorry saga.”
See also: ‘In dire need of an overhaul’ – the ACD system post-Woodford