Skandia to shut Invesco funds and switch £640m to Woodford

Skandia is to close its versions of the Invesco Perpetual High Income and Invesco Perpetual Income funds it offers in its life and pensions business and transfer the £640m holdings into its version of Neil Woodford’s CF Woodford Equity Income fund.

Skandia says the move has been made on the back of investor feedback and is in the best interests of clients.

The transfer will complete on 9 October. The version of the Woodford fund will be the same as that held within Skandia’s WealthSelect proposition.

Woodford left Invesco in April in a move which saw Mark Barnett take over management of the High Income and Income funds.

A Skandia spokesman says: “The Skandia Invesco Perpetual income funds were previously managed by Neil Woodford. 

”Following the launch of the Woodford Investment Management Equity Income fund we have decided to transfer assets from the Skandia Invesco Perpetual funds into the OMW Old Mutual Woodford Investment Management fund so that customers continue to benefit from the proven investment expertise of Neil Woodford.”

Skandia adds if investors wish to invest with Barnett they can access him through the Skandia Invesco Perpetual Strategic Income fund which remains open. Switches can be made into this fund before the transfer takes place.

Skandia says there will be no specific charge for the transfer but trading costs will apply. It says this will typically be around 1 per cent.

Hargreaves Lansdown senior analyst Laith Khalaf says: “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.”