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View the article online at http://citywire.co.uk/wealth-manager/article/a737469

What does Woodford’s new venture mean for UK fund management?

by Eleanor Lawrie on Mar 03, 2014 at 15:16

He added the firm will monitor Woodford’s new fund and venture closely.

The problem is, as a senior sales figure in the industry explained, that Woodford is ‘just too good to ignore’.

‘The man is deemed to be an investment god and I imagine there are dealing houses gearing up as we speak,’ he said. ‘I would be quite nervous if I was Invesco Perpetual. Income is still a massive theme and Woodford will take assets from his old place and the winners from his fallout – he is just too good to ignore.’

The salesperson added that the industry could see a similar scenario to Richard Buxton, who left as manager of the flagship £3 billion Schroder UK Alpha Plus fund last year to become head of equities at Old Mutual Global Investors.

Between April and June last year, Old Mutual gathered £854 million in net retail sales from investors, more than five times the £160 million it attracted in the first three months of 2013.

One salesperson said Woodford could have a couple of billion ‘within a couple of quarters’.

But Stephen Peters, analyst at Charles Stanley, pointed out the investment landscape had changed markedly since Woodford first ran a UK equity income fund.

‘There are a huge number of funds, and a widening of ways investors can get income, not just in the UK,’ he said.

But he says Charles Stanley is confident in Barnett’s ability, while the fund house has also taken positive steps to diversify its product range through its Global Targeted Returns fund.

While he thinks Woodford will see a lot of his investors coming back to him, he says other funds in the UK income space ‘are good in their own right and have a loyal following, so shouldn’t be too worried’.

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1 comment so far. Why not have your say?

tom tuite dalton

Mar 03, 2014 at 17:04

If looking to "buy history" investors should back Mark Barnett, since as Citywire's numbers show he has convincingly outperformed both the FTSE All Share Index and Neil Woodford over the last three and five years. Moreover he has the support of a long established successful business that is Invesco Perpetual. Follower of investment trusts most probably will already know this, given his exceptional performance record with Perpetual Income & Growth.

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