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Neil Woodford to launch income fund in May

New fund will replicate Woodford's current Invesco Perpetual Income fund.

 
Neil Woodford to launch income fund in May

Neil Woodford will to launch a new income fund in late May, designed to replicate the Invesco Perpetual Income fund that the highly-regarded fund manager currently runs.

Citywire A-rated Woodford, whose new investment firm Woodford Investment Management will go live in early May after he leaves Invesco, will launch the fund with an offer period running from the beginning of May through to late May.

An employee at the new business confirmed the launch and said it would be run in a similar nature to the fund that Woodford has run for the past 25 years. Last month Woodford Investment Management (WIM) was established at the same London address as Oakley Capital, the private equity house that is backing the business.

Over the past three years Woodford's £9.4 billion Income fund fund has posted a 47.7% return versus a 36.8% rise for the average fund in that sector. The £13.6 billion High Income fund is up 47.3% over the same period versus 36.8% by the UK Equity Income sector.

Back in October Invesco announced that Woodford would leave at the end of April to launch a rival fund management group. 

Citywire AA-rated Mark Barnett will lead the Invesco Perpetual UK equity team after Woodford's (pictured) departure, assuming control of the Invesco Perpetual High Income and Invesco Perpetual Income funds.


5 comments so far. Why not have your say?

TJL

Feb 11, 2014 at 21:20

Fascinating (headline producing) stuff.

I have been invested with NW for 17 years, but have recently sold out.

No doubt there will be a 'gold rush' furore once the doors open for business on the new fund (what will HL's stance be?), and I have no doubt that long-term the fund is likely to deliver, but there are plenty of other excellent managers available to the active, non-noise inspired investor.

But I wish him the best of luck, he has the best of, and well deserved reputations.

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Nigel Meek

Feb 11, 2014 at 23:58

Having been royally shafted when the last "star" fund manager swapped horses, (thanks for that Fidelity!), I am steering well clear of this one for at least 2 years until the dust settles!

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DAT

Feb 12, 2014 at 08:48

I would tend to agree with Nigel. Wait until the dust settles before piling into to the new fund. NW has a good long term track record but doesn't mean that he will be able to replicate this with the new fund. Also performance of the Income fund has not been that good over 3 to 5 years. Probably time to get out of IP Income fund before the sheep do!

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BOB 2

Feb 13, 2014 at 14:21

very good advice thanks all,

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Matthew Bird

Feb 17, 2014 at 17:40

Fidelity Special Situations (and subsequent China fund) were both investment trusts i think, which exacerbated the problem. Also China has had a rough time generally during Bolton's tenure. OEICs shouldn't have as much of an issue if that is going to be the new setup.

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