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View the article online at http://citywire.co.uk/wealth-manager/article/a749324

Woodford: Astra right to reject 'opportunistic' Pfizer bid

by Dylan Lobo on May 06, 2014 at 08:13

Woodford (pictured) has said it is his ambition to build a firm of a significant size rather than a boutique business.

‘I intend to be here for decades to come. A limited timescale at Woodford Investment Management has not even entered my thinking,’ he told The Sunday Telegraph.

The firm’s first fund will be called CF Woodford Equity Income. As revealed by Citywire last week, the fund will target income of greater than 110% of the FTSE All Share Index and a yield of 4.1%.

According to the Telegraph, the firm is likely to launch further funds including a global equity income offering, with bond funds likely to follow. The Financial Times reported the firm could also offer an emerging markets proposition.

Woodford will not be running the company, which will be headed by fellow partner and chief executive Craig Newman, who joined him from Invesco.

Woodford told the Telegraph: ‘I want to concentrate on what I do best: managing money. When you work for an established business there will always be a creep of distracting bureaucracy: it’s the same in all industries.’

Woodford will kick off his new venture with around £4.5 billion in assets under management, after successfully winning the £3.5 billion St James’s Place mandates from Invesco Perpetual at the start of April, while his new income fund will have around £1 billion in assets.

Woodford told the FT: ‘I am hugely excited about this opportunity. It’s been a frustrating 12 months as I just want to get going with the new business.’

In terms of his investment philosophy, Woodford has emphasised that the new start will not signal a dramatic departure from his style at Invesco.

He told the FT that he will stick to his strategy of buying inexpensive unloved stocks and holding for them the long term.

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