The Woodford Equity Income fund is already closed to new investment on the Sterling Bond, Zurich Pension and Sterling ISA/Sterling Investment Account but dealing has now been suspended by the underlying fund.
Funds and products affected by the suspension
This may affect customers invested in these funds through the following products:
Zurich Woodford UK Equity Income ZP
Sterling Investment Bond
- Sterling Woodford UK Equity Income
- Sterling Woodford UK Equity Income 2
Sterling ISA and Sterling Investment Account
LF Woodford UK Equity Income C Inc
How does this affect customers investing in these funds?
We’ll continue to pay your clients the full amount of their regular withdrawal. We’ll also allow your clients to switch out of the Sterling Woodford Equity Income fund or take a full or partial withdrawal from their Bond.
If you have clients taking a regular withdrawal then we’ll continue to pay your clients the full amount. We’ll also allow your clients to switch out of the Zurich Woodford Equity Income ZP fund or take a full or partial withdrawal from their plan.
If you have clients paying into the fund by direct debit then this will be redirected to the Zurich Managed Bond ZP fund. This is the default fund we use when another fund closes.
Sterling ISA/Investment Account
The amount of the regular withdrawal that is taken from the LF Woodford Equity Income fund will stop but the rest of the withdrawal will continue. If your clients want to maintain the same value/amount that they currently withdraw then you will need to ask us to exclude the affected fund from their withdrawal strategy.
Your clients won’t be able to take a full withdrawal from their account. They’ll be able to take a partial withdrawal, but won’t be able to take anything from the suspended LF Woodford Equity Income fund.
If they pay into the fund by direct debit then the portion of the direct debit due into the LF Woodford Equity Income fund will be redirected to the Threadneedle Managed Bond fund. This is the default fund we use when another fund closes.
How will we communicate this closure?
We’ll only write to your clients if they have a Sterling ISA or Sterling Investment Account or are paying into the Zurich Woodford Equity Income ZP fund by direct debit.