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Hargreaves Lansdown pushes for in specie Woodford transfer

by Eleanor Lawrie on Dec 20, 2013 at 10:20

'He has been a key member of the UK equities team for 17 years, with first-quartile performance over one, three and five years.  As always, our primary focus is to manage the transition and continue to look after our clients’ best interests.'

Dampier drew attention to Patrick Evershed move from Rathbones to New Star 11 years ago as an example of where an in specie facility was offered to investors, although he acknowledged Woodford was a much bigger operation. 

Back then, in what was a first for the investment industry, Rathbones and New Star co-operated with the Inland Revenue to ensure that transfers from Rathbone Special Situations to New Star Select Opportunities were not seen as a way to 'avoid' tax.

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7 comments so far. Why not have your say?

Paul Renken

Dec 20, 2013 at 11:58

I think the decision ultimately lies with Invesco. They are the fund sponsor that Neil has left and the clients are invested with Invesco. Neil was an employee as manager of that fund, not the owner or sponsor. Teh funds invested are under the stewardship and responsibility now, as they always have been, of Invesco, not Neil.

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Martin Harrison

Dec 20, 2013 at 12:11

The terms of any "in specie" transfer would have to take into account the cost of selling stocks that Woodford decided not to retain, otherwise other investors in the new fund would be disadvantaged. Such sales are likely as the new fund will almost certainly be smaller and therefore likely to have a smaller number of holdings.

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Anonymous 1 needed this 'off the record'

Dec 20, 2013 at 16:28

Unbelievable cheek. Who do HL think they are?

If it happened, which would be ridiculous, think of the implications.

Are they going to compensate the clients for this 'advice' if Neil's new offering doesn't perform as well? What about if he does something non-UK. Will HL ensure the risk is right for the clients? What about if the Oakey lot went bust, are HL going to dip in to their pockets?

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Anonymous 2 needed this 'off the record'

Dec 21, 2013 at 09:14

I am not aware we know what the investment objective of the new fund will be (will it remain a UK fund? will it have more small caps than Neil Woodford's previous products? Will it suit all HL's clients currently invested in the IP income and IP High Income funds?).

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Dec 23, 2013 at 08:32

I think there is every chance NW wants to a blank canvas so he can start again and explore new ideas, otherwise what is he leaving for?

So, as Anonymous 2 points out, unless investors are prepared to follow him blindly just because of who he is, they might find his new product is not appropriate for them.

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Dec 23, 2013 at 14:05

Has Mr Woodford indicated whether or not his new fund will be a China Special Situations fund with generous fees? I believe they are all the rage for successful fund managers having mid life crises.

Has he said if it will be a close or open ended fund?

Has he be in early talks with HL perhaps an exclusive share class?

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Dec 23, 2013 at 18:58

Is it Xmas or April 1st?

I can't believe this is a genuine suggestion from HL.

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