Woodford unveils new fund details

Neil Woodford, Britain’s best-known fund manager, announced details of what may be the largest fund launch ever in the UK. Woodford Investment Management will begin accepting money into the CF Woodford Equity Income Fund on 2 June.

Investors are expected to shift billions of pounds from the Invesco Perpetual funds previously run by Woodford to his new firm.

What the commentators said

Woodford “has enjoyed a great start”, said Gavin Lumsden on Citywire.co.uk. His firm has won a £3.5bn mandate from St James’ Place, which immediately puts it into the top third of UK managers by assets.

The strong track record he built up over 25 years at Invesco Perpetual should encourage plenty of other investors to switch. But if he needs an “ace up his sleeve”, it will be fees, said Holly Black on Thisismoney.co.uk.

The new fund has an all-in fee of 0.75% per year. Invesco Perpetual High Income has ongoing charges of 1.17%. This raises the prospect of a price war as Invesco tries to prevent defections – good news for cost-conscious investors, said Lumsden.

• Stay up to date with MoneyWeek: Follow us on TwitterFacebook and Google+

MoneyWeek magazine

Latest issue:

Magazine cover
Heading higher?

Or are house prices set to fall?

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues

'Would you rather upset God, or have Him just ignore you?'

In the first of three interviews with Merryn Somerset Webb, Hugh Hendry, manager of the Eclectica Fund, talks about what it takes to be a good hedge fund manager – and how he learned to stop worrying and love central banks.


Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.


21 November 1969: The first permanent Arpanet link

A milestone in the formation of the internet, the first permanent Arpanet link was established on this day in 1969 between researchers in the United States.