LONDON Aug 22 Star British fund manager Neil
Woodford will get a 640 million pound ($1.1 billion) boost for
his new investment firm from asset manager Skandia, which is
shifting money to him from Invesco Perpetual funds that he
"Following the launch of the Woodford Investment Management
Equity Income fund, we have decided to transfer assets ... so
that investors continue to benefit from the proven investment
expertise of Neil Woodford," Skandia said in a statement.
The money will shift from the Skandia Invesco Perpetual
funds into the OMW Old Mutual Woodford Investment Management
fund in October. Investors can still choose to invest with
Invesco Perpetual using another Skandia fund.
The move follows an announcement by investment group St
James's Place earlier this year that it was ending 7.7 billion
pounds worth of investment mandates with Invesco Perpetual and
would allocate nearly half of that to Woodford.
"We suspect Skandia will be the first in a line of life
companies who switch Invesco Perpetual investors into Woodford's
new fund," said Laith Khalaf, a senior analyst at Hargreaves
"Life companies do close funds from time to time because of
lack of investor interest, but to switch from one manager to
another in this way is a highly discretionary call," he added.
Woodford, who left Invesco Perpetual in April, built a name
for himself during more than 25 years at the firm.
The Invesco Perpetual High Income Fund gained more than
2,200 percent under him, data from fund tracker Lipper showed,
while the FTSE All-Share Total Return index rose 868 percent.
($1 = 0.6029 British Pounds)
(editing by Jane Baird)