Skandia is closing its versions of the Invesco Perpetual Income and High Income funds. Investors will be moved into their new version of Woodford Equity Income on 9th October 2014.
The company say they have made the decision based on client feedback.
Senior Analyst at Hargreaves Lansdown Laith Khalaf said:
“We suspect Skandia will be the first in a line of life companies who switch Invesco Perpetual investors into Woodford’s new fund. This is still a pretty bold move. 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.
“On one level the switch does make some sense- most savers will have invested to get access to Woodford in the first place. However closing the Invesco funds down leaves no option for those investors who are happy with the job Barnett has done and who want to stick with him.”