The former Woodford Equity Income fund has plummeted 17% in value on a single day, following news one of its few remaining holdings is set to be wound up.
In a letter to investors published on 15 June, Link Fund Solutions managing director Karl Midl revealed the fund had lost £24m of its net asset value when Rutherford Health appointed an official receiver to liquidate the firm.
Midl described the development as "extremely disappointing news", adding that while it was "premature" to know how much of its investment may be recovered, revaluing to zero reflected the current uncertainty that any returns at all would be forthcoming.
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"Unfortunately, a deal could not be reached and the decision by the company's board of directors to appoint an official receiver for its liquidation was unavoidable," Midl wrote. "At this stage we are unsure as to what value, if any, is recoverable, however we will endeavour to recoup as much as possible for the fund."
As of 15 June, the net asset value of the fund sat at £119m, down from a peak of £145m on 29 April.
The fund will also change the frequency of its publication of NAV from monthly to quarterly, with effect from 30 June.
Midl also reiterated that Link is unable to provide a date for the fifth capital distribution for the fund.
