A Bank of America Merrill Lynch director has become Woodford Investment Management’s first recruit ahead of the firm's impending income fund launch.
Russell Harrop, who was director of global equity sales at Bank of America Merrill Lynch, has joined Oakley Capital Management and Wealth Manager understands that he will work as an analyst supporting Neil Woodford on his new fund.
At Bank of America Merrill Lynch Harrop focused initially on Japanese equities and then moved onto the global desk. There he produced a ‘best ideas’ portfolio of buy and sell recommendations and worked on the firm’s ‘Globlog’ report of thematic and stock ideas.
Early marketing material, seen by Wealth Manager, suggests that Woodford (pictured) will ultimately be supported by a team of four analysts and portfolio managers when the new fund launches.
The material for the Citywire A-rated manager’s new venture also stated that he would be ‘fully responsible and accountable’ for the fund’s strategy and performance, but would work alongside the new team in a ‘cutting-edge, innovative investment infrastructure’.
A number of sales people have already been recruited for Woodford’s firm, but Harrop is the first on the investment side.
The documents seen by Wealth Manager also reveal that the Woodford Equity Income fund will target a yield equivalent to at least 110% that of the FTSE All Share index, in line with the requirements of the IMA UK Equity Income sector.
Last month Invesco Perpetual confirmed that it would be moving Woodford’s former funds, High Income and Income, from the IMA Equity Income sector into the IMA UK All Companies sector ‘due to the constraints around the three-year yield requirement used as a qualifier for the IMA Equity Income sector’.
Wealth Manager’s exclusive gallery explores Woodford’s new venture in greater detail