Ryan Hughes, interim AJ Bell Investments managing director, comments on the outcome of the Woodford Equity Income fund scheme of arrangement meeting.
He said: “The overwhelming endorsement for the scheme of arrangement by embattled investors in the former Woodford Equity Income fund will come as a relief for many who will now be able to see an end in sight for this ongoing saga. Over four and a half years have passed since the fund suspended and with well over 90% of investors voting in favour of the scheme, there will be many who have done so simply because they are fed up with how long this process has taken.
“While there will no doubt be some that feel that this scheme doesn’t compensate them sufficiently for their losses, others will feel that getting back around 80% of the fund value on suspension will be more than they could have hoped for when the fund initially suspended.
“As we approach 2024, investors now move to a more detailed timeline that should see the scheme receive Court approval in mid-January and then by the end of March, investors should receive their first payment with between £183.5 million and £200 million being paid out. This first payment will represent the vast majority, with the potential for follow up smaller payments once all costs have been taken into account.
“While investors will in no way see this as an early Christmas present, the prospect of being able to draw a line under this whole sorry tale in the first half of 2024 will be seen by many of the thousands of investors trapped in the fund for all those years as a way of finally being able to move forwards.”
