Neil Woodford’s new fund attracts £1.6bn from investors
Star fund manager has invested 95pc of the fund as he finds ‘fantastic investment value’ 
Photo: Jeff Gilbert
The new Woodford Equity Cash flow fund attracted £1.6bn from traders in the run-up to its launch last week.
The fund invited traders to commit money throughout an “offer you time period” from June 2 to 19. This allowed it to commence investing with a substantial sum and benefit from economies of scale.
Neil Woodford , who left Invesco Perpetual for his new organization, Woodford Investment Management, in April after 25 many years, has previously invested 95pc of the funds in the fund. He previously ran funds well worth tens of billions at Invesco. He explained he was obtaining companies that provided “fantastic” value.
“I am actually fired up with the portfolio that I have been in a position to construct for this fund,” he stated. “I have met businesses in recent weeks that have immense potential and offer you wonderful investment value.”
The fund will publish all its holdings from subsequent month – a departure from the practice of most asset managers, which typically make public only the leading ten holdings in their funds.
Craig Newman, the chief executive of Woodford Investment Management, mentioned: “We want to be open and transparent with our investors and this is why we will publish the fund’s total portfolio on the internet site so that everybody can see the place their money is invested, rather than just the leading 10 holdings as a lot of companies do. We count on this to be obtainable by mid July.”
He extra: “We are thrilled to have had such help from investors. We comprehend the great obligation we have been given to supply the long-phrase investment returns they anticipate and we are committed to obtaining that goal.”
The total annual expense of the fund is .75pc, or as reduced as .6pc by way of particular “fund stores”. But traders will also have to pay the fund store itself – some charge percentage charges of among .2pc and .45pc a year, while others levy a flat charge.
The £1.6bn in the fund is in addition to about £3.6bn that Woodford manages for clients of St James’s Area, the wealth manager.
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