Insurer Skandia U-turns on plan to stop Invesco Perpetual investment

5th September 2014

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Insurer Skandia has u-turned on its controversial decision to stop investors money being put in Invesco Perptual income funds in favour of veteran fund manager Neil Woodford’s new fund.

In August, Skandia said it would stop customers invested through its platform from investing in the Invesco Perpetual Income and High Income funds, formerly run by Woodford.

They would instead be invested in Woodford’s new fund range, meaning total of £640 million would have had to be moved at a cost of 1% – or £6.4 million to investors. However, following pressure from financial advisers about their clients’ money, Skandia has backtracked on its plans.

In a letter to advisers, Paul Feeney, chief of Old Mutual Wealth which owns Skandia, said he had listened to what investors and advisers wanted and allowed the Invesco Perpetual funds – which are now run by Mark Barnett -to remain open.

“What we heard from advisers and their customers was that they welcomed the addition of the Woodford Income fund to our life range and the price we have negotiated for them, but they wanted the Invesco Perpetual funds to remain open.”

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