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Woodford reveals new fund fees

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Woodford reveals new fund fees

Neil Woodford’s new fund will absorb its administrative expenses, meaning its annual management charge will be the same as the ongoing charge.

The fund’s fee structure has been confirmed as:

Share class A C Z X
Inc & Acc Inc & Acc Inc & Acc Inc & Acc
Initial None None None None
Annual 1.00% 0.75% 0.65% 1.50%
Ongoing charge 1.00% 0.75% 0.65% 1.50%
Exit None None None None

For comparison, Invesco Perpetual High Income has an ongoing charge of 1.17% on its 'no trail' share class and Invesco Perpetual Income has one of 1.16%.

The minimum investments for the Woodford fund are £150,000 for A shares, £50 million for C, £500 million for Z, and £1 million for X - although private investors will be able to buy in with lower amounts through platform distributors.

The fund’s pre-launch offer period will run from 2 June to 19 June 2014, with units priced at £1.

‘We are able to keep our fees low, through the use of modern technology and encouraging investors to use fund platforms, execution-only brokers and financial advice channels, rather than buying directly from us,’ commented Craig Newman, chief executive of Woodford Investment Management.

‘Many investors are still needlessly paying higher fees as a result of buying directly from fund management companies in the past.’

Citywire A-rated manager Woodford added: ‘I will run this new fund in the same way that I have always run money, adopting the same philosophy and the same long-term approach. My passion and energy have never been stronger. Woodford Investment Management has a culture and an environment that gives me the opportunity to focus on investing – and to build a business committed to its clients’ long-term interests.’

Capita Financial Managers will act as the fund’s authorised corporate director, and Woodford Investment Management has also severed its operational relationship with Oakley Capital Management Limited now that it has secured FCA approval in its own right.

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