NorthWest Biotherapeutics Inc (NWBO)

[CogDiss 1188X]

Woodford fund closing, Big haircut expected

Did a quick check and didn’t see that this has been posted.

When Link Fund Solutions announced that it is closing Woodford Equity Income Fund permanently and kicking out Neil Woodford, it was implied that investors probably won’t get back everything they entrusted to the fund manager. But nobody knew just how much they would lose.

An internal analysis commissioned by Link suggested that the collective loss could amount to £1 billion — out of a fund last valued at £3.1 billion — Citywire has revealed.

The calculations were made by boutique investment banking firm PJT Park Hill, which has been retained to sell off the fund’s “less easily sold assets” while Black Rock takes charge of the liquid holdings. In the worst-case scenario, investors could be seeing 43% of their remaining cash evaporate.

“Following the suspension, insufficient progress on the repositioning of the fund meant there was not reasonable certainty when this repositioning would be fully achieved and LFS therefore concluded that it is in the best interests of all investors for the Fund to be wound up on the basis of an ‘orderly realisation’ of the fund’s assets,” Link told the Guardian. “This involves the sale of the fund’s assets over a reasonable period of time – the aim is to avoid a fire sale, balancing the need to generate liquidity and the need to secure a reasonable value for the assets.”

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Investors could emerge from Niel Woodford debacle with £1 Billion Loss