Neil Woodford's flagship equity income fund to remain suspended

Neil Woodford's £3.7bn flagship equity income fund is set to remain closed until the next review deadline on 29 July.

The fund's authorised corporate director, Link Solutions, said in a letter on its website that a suspension of the fund "remains in the best interests of all investors".

The fund was initially suspended at the beginning of June following a surge in withdrawals. It was understood that a request by Kent County Council for more than £260m of its investment cash may have triggered the freeze.

Link said the fund's manager, Woodford Investment Management, was using the time to reposition the portfolio into more easily tradable stocks. It said Woodford "has been taking steps to reposition the fund’s portfolio to realise the unquoted and less liquid stocks and invest in more liquid investments".

"This has continued since dealings in the fund were suspended and Woodford continues to invest in opportunities in order to meet the fund’s investment objectives."

Link, which will continue to monitor the fund on a daily basis, will formally review the suspension at least every 28 days and keep the Financial Conduct Authority informed.

In a video released on Monday, Neil Woodford said there was no "prescribed limit" to the suspension.

"Of course, we understand that people want access to their money, they are very frustrated by not being able to deal in the fund. But we are using the time… to ensure we get the right outcomes for our investors," he said.