Here are some extracts from the FCA’s Woodford Equity Income Fund FAQ (full answers here), following the decision to shut down the stock picker’s increasingly-stricken equity fund:

Why did the fund suspension happen?

On 3 June 2019, Link Fund Solutions decided to suspend dealings in the WEIF in order to protect all investors in the fund following an increased level of redemptions.

Why is the WEIF being wound up?

Whilst progress has been made in relation to repositioning the WEIF and disposing of its less easily sold assets, this has not been sufficient to provide reasonable assurance that the repositioning would be fully achieved and the WEIF could be re-opened in December. Because sufficient progress was not made, LFS has decided it is in the best interests of all investors to seek to wind-up the WEIF rather than continue to reopen the fund.

What does this mean if I’m an investor in the WEIF?

A fund winding-up means it will close and money will be returned to you. Returning money takes place in instalments as the assets in the fund are sold. LFS expects to make these as soon as possible once the formal winding-up begins, which is expected to commence in mid-January, because three months’ notice needs to be given to investors under the rules implementing the applicable European Directive.

What are the arrangements for the management of the fund’s assets?

LFS remains the authorised corporate director of the WEIF. This means it will be responsible for the orderly winding-up of the fund.

Who will return my money to me?

You should receive money from any intermediary through which you invested in the fund (e.g. a platform provider or an adviser), or LFS directly.

How much of my money will I get back?

The amount you will receive will depend on the fund’s value and the amount raised by selling the fund’s assets. The fund’s value fluctuates in line with the market values of its underlying assets. If assets are sold for lower prices, you will receive less from the winding-up process and this also may be less than you originally invested.