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Skandia and Woodford in talks over WealthSelect deal

Skandia and Woodford in talks over WealthSelect deal

Old Mutual Wealth is in talks with Woodford Investment Management over giving star manager Neil Woodford a mandate on its WealthSelect fund proposition.

The company is reviewing its WealthSelect proposition and is in talks with Woodford Investment Management to see if it could assign the firm a new mandate.

Woodford's new venture is set to launch in May and is backed by private equity firm Oakley Capital.

The manager (pictured) announced his departure from Invesco Perpetual in October 2013 and was set to leave in April but Mark Barnett assumed responsibility for the Invesco Perpetual High Income fund, Invesco Perpetual Income fund and the Invesco Perpetual UK Equity Pension fund ahead of schedule in March.

Old Mutual Wealth had initially given Invesco Perpetual its High Income mandate but cut the mandate from its launched list which was published in February after Woodford's announced exit. Invesco now manage the Asian and Corporate Bond mandates for WealthSelect.

An Old Mutual Wealth spokesman confirmed that preliminary talks had been held with Woodford Investment Management and said: 'It is one of the managers we are looking at.'

Dean Bowden, head of investment solutions at Old Mutual Wealth, said: 'WealthSelect is not a static range, if changes are required or gaps are identified in the proposition we will look to add new capability.

'Additionally where opportunities to include exceptional managers which will be additive to the proposition arise, we will naturally explore them.'

WealthSelect launched with 55 funds overseen by Old Mutual Global Investors with half of these sub-advised by third party fund groups including Aberdeen, Artemis, BlackRock, Fidelity, Henderson, Invesco Perpetual, JP Morgan, Newton, Schroders and Threadneedle.

Woodford has enjoyed a successful period before his firm's launch after winning £3.65 billion worth of mandates from St James's Place last week.

The restricted advice group announced it had backed Woodford's new venture by giving it the three mandates the manager had previously run under his old company Invesco Perpetual.

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