Invesco loses further £640m to Woodford fund

26 August 2014

Life company Skandia will move all client money out of the Invesco Perpetual Income Fund to a newly launched fund managed by Neil Woodford, CF Woodford Equity Income.

In a note to advisers, the company says: "There has been unprecedented demand for access to Neil Woodford's expertise, with many previous investors in the Invesco fund having followed him to his new fund - a trend that we expect to continue for some time."

Adding that it believes the decision is in the best interests of Skandia investors, it says it will move all holdings in the fund, currently managed by Invesco's Mark Barnett - which Money Observer understands is approximately £640 million - back under Woodford's management.

Skandia will close the Skandia Invesco Perpetual Income Fund on 9 October 2014 and launch the OMW Old Mutual Woodford Equity Income Fund, into which will pour all the money previously held with Invesco.

Skandia is owned by Old Mutual Wealth.

Invesco declined to comment.

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Bold move

Laith Khalaf, senior analyst at Hargreaves Lansdown, says: "We suspect Skandia will be the first in a line of life companies who switch Invesco Perpetual investors into Woodford's new fund.

"This is still a pretty bold move. Life companies do close funds from time to time because of lack of investor interest, but to switch from one manager to another in this way is a highly discretionary call."

Woodford departed Invesco earlier this year to launch his own fund management company, Woodford Investment Management.

Although investors have been enthusiastic about Woodford's new fund, experts have warned not to blindly follow the herd.

This article was written for our sister website Money Observer

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