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Woodford investors withdraw £450m from Income fund

The bulk of the money withdrawn from Neil Woodford's investors has come from just one of his funds, says Invesco Perpetual.

 
Woodford investors withdraw £450m from Income fund

The bulk of the money pulled by investors in departing fund manager Neil Woodford has come from just one of his funds, Invesco Perpetual has revealed.

New figures from Invesco Perpetual show that just over £500 million was withdrawn by investors last month after star fund manager Woodford announced he was leaving the company.

That is in line with the 4% redemption (withdrawal) figure Invesco Perpetual released earlier this month in relation to the £24 billion Woodford manages in its Income and High Income funds. At the time the firm explained it was not imposing a charge on investors who sold out, although it had 'swung' the funds to a 'bid' price to ensure that costs caused by departing unit-holders were evenly shared.

What is surprising is that £446 million of the net outflows reveled today came from the Invesco Perpetual Income fund, leaving it with assets of £10.2 billion at the end of the month.

By contrast the Invesco Perpetual High Income fund suffered redemptions of just £61 million in October, leaving it with £13.9 billion of investors money.

The disparity is puzzling as the funds both yield an income of around 3.4% and over three years have an identical performance, returning a total return of 48.2%.

7 comments so far. Why not have your say?

peter hart

Nov 19, 2013 at 18:08

Well I had my money in the Perpetual Income Fund!

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Pot meet kettle....kettle pot

Nov 19, 2013 at 18:31

I suspect it means that a large holder (perhaps a very large fund of funds) has been the main seller so far.

This might highlight the speed at which funds of funds can (and do) move by comparison to individuals or maybe that private investors are more relaxed about Woodford's planned departure than FOFs managers.

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Franco

Nov 19, 2013 at 21:39

That would be me, withdrawing my monthly savings. I am a banker (Royal bank), you see !

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Bryan Jefferson

Nov 19, 2013 at 22:17

Two out of three bizarre comments; have we been invaded by Martians?

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richard tomkin

Nov 20, 2013 at 09:25

I hope the mandate for Edinburgh Investment Trust will go to Woodford's new company

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D. WRIGHT

Nov 20, 2013 at 15:26

Presumably the funds withdrawn will be re-invested in other income funds with similar underlying company shares so the value of the IP income fund units will not depreciate and therefore no need to panic. Am I right?

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Spartacus

Nov 20, 2013 at 17:54

D, Wright - redemptions are about 4%, won't really have much affect on either IP or its underlying holdings

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