Woodford Equity Income: Link settlement with FCA

granta

I've just received the information pack re voting for the redress scheme. From what I've read on the FCA website, it seems to be the best deal both financially and speed.

I only have a small holding and it makes sense to vote for it. 

Any additional perspectives?

Eye2021

I'm sitting on some losses in my SIPP and ISA, so I guess I'll have to wait and see.

The whole process stinks - investors seem to be a lot worse off than if Woodford had just been allowed to get on with it, and the forced sale of assets was at completely the wrong time.

elwy

I'm so confused about what this all means.  I originally had around £50k invested across my family's accounts including my kids junior ISAs.  I'm currently looking at one account which now holds 6,538.911 units valued at £66.  So if the recompensation scheme is offering 77p in the pound, does that mean I get less than £66 compensation for those units that originally cost £10-20k?  Or is it worth more?  What will the price per unit be?
I'm just trying to figure out how badly my family is shafted.

tigerspill

elwy said:

I'm so confused about what this all means.  I originally had around £50k invested across my family's accounts including my kids junior ISAs.  I'm currently looking at one account which now holds 6,538.911 units valued at £66.  So if the recompensation scheme is offering 77p in the pound, does that mean I get less than £66 compensation for those units that originally cost £10-20k?  Or is it worth more?  What will the price per unit be?
I'm just trying to figure out how badly my family is shafted.

Why do you think you / your family have been shafted?  You / they chose these investments (as did I).  Investments always carry this type of risk.  My mistake was ignoring what was going on with Woodford.  All the signs were there.  I have lost out (100% my fault and no one else's) due to my lack of understanding what exactly I had invested and laziness in finding out.  At that stage, I unfortunately followed the crowd.  Lesson learned for me (I hope).

I don't mean this as a dig nor to be unsympathetic.  I have lost lots of cash here as well.  It is what it is.

jimjames

elwy said:

I'm so confused about what this all means.  I originally had around £50k invested across my family's accounts including my kids junior ISAs.  I'm currently looking at one account which now holds 6,538.911 units valued at £66.  So if the recompensation scheme is offering 77p in the pound, does that mean I get less than £66 compensation for those units that originally cost £10-20k?  Or is it worth more?  What will the price per unit be?
I'm just trying to figure out how badly my family is shafted.

I don't think it's been published but I seem to recall from a calculation I did a while back that the additional money from Link would equate to about 10p per unit held. So with 6538 units it would be about £650. I'll see if I can dig out the info I'd worked it from.

granta

jimjames said:

elwy said:

I'm so confused about what this all means.  I originally had around £50k invested across my family's accounts including my kids junior ISAs.  I'm currently looking at one account which now holds 6,538.911 units valued at £66.  So if the recompensation scheme is offering 77p in the pound, does that mean I get less than £66 compensation for those units that originally cost £10-20k?  Or is it worth more?  What will the price per unit be?
I'm just trying to figure out how badly my family is shafted.

I don't think it's been published but I seem to recall from a calculation I did a while back that the additional money from Link would equate to about 10p per unit held. So with 6538 units it would be about £650. I'll see if I can dig out the info I'd worked it from.

"The FCA considers it is in the interests of the investors to be given the opportunity to consider the Scheme. If the proposed redress amount of £230 million is paid in full then investors will have recovered approximately 77p in the pound."
This is taken form the FCA site (dated 10/11/23). But I don't fully understand it and how it relates to the return per unit?
I'm assuming the 77p returned takes into account everything we have had returned to date. Was hoping someone with better understanding would be able to help explain it.

elwy

I eventually managed to find their Explanatory Statement which I kept seeing referred to but not linked!
https://lfwoodfordfundscheme.com/wp-content/uploads/2023/11/LFSL-Explanatory-Statement-Updated-21-November-202310273829800.2.pdf
So it looks like units will be worth around 6.352p depending on share class.

Worked example from above:

1. Using the scenario of an investor (Mr. X) who holds 10,000 A Sterling Income shares in the WEIF, he will receive payments as follows:
(a) if the maximum potential amount of £230 million is distributed, Mr. X would receive a total amount of £515.30; and
(b) if the distributions in the first quarter 2024 are £183.5 million, Mr. X would receive a total payment of £411.10 in the first quarter of 2024, with the remaining balance of up to £112.10 to be paid in subsequent distributions (if and to the extent that the full Reserve Amount is released).
2. These figures can be compared to the loss that the FCA claims relevant investors have suffered. In the case of Mr. X, his total loss would have been calculated at £668.50 by the FCA. So, if Mr. X receives a total payment from the Scheme of £515.30, he would be receiving 77% of the amount that the FCA claims he is owed. If Mr. X only receives the initial payment, he would be receiving about 61% of the amount that the FCA claims he is owed.

LHW99

Comments on this in money mail today

https://www.thisismoney.co.uk/money/diyinvesting/article-12795731/Clock-ticking-Woodford-investors-decide-compensation-fair.html

BigTabby

Hi everyone, this is my first posting on the MSE Forum.  There doesn't seem to be any news about this Scheme of Arrangement.  I received my "initial payment" a couple of months ago, but it was under a tenth of what I was expecting originally, based on a table published by Which. I'll try & attach the photo I took of it.

Does anyone know if we'll be getting further more substantial payments in future, or just some "small change"?  I'd be grateful for any information about what's coming & roughly when. 

ColdIron

Are you sure that that's your initial payment? There have been 5 previous payments since 2020