The Woodford Equity Income Fund which has been suspended since June is to be wound up.
Neil Woodford, whose company Woodford Investment Management has its head offices on Oxford Business Park, has also been removed from having any further involvement in the fund.
Link Asset Services, which administers the fund, said in a letter to investors: “After careful consideration, the decision has now been taken not to re-open the fund and instead to wind it up as soon as practicable.”
The fund was suspended after investors started withdrawing their cash, but the decision has now been made to close it.
Link said: “Whilst progress has been made in relation to repositioning the fund’s portfolio, this has unfortunately not been sufficient to allow reasonable certainty as to when the repositioning would be fully achieved and the fund could be reopened.”
The ‘Woodford’ name will be removed from the fund, with Mr Woodford’s company no longer having any involvement and receiving no further payments, Link told investors.
Winding-up will begin in January.
Neil Woodford issued a statement this morning, which says: “This was Link’s decision and one I cannot accept, nor believe is in the long-term interests of LF Woodford Equity Income Fund investors.”