Skandia, part of the Old Mutual Group, is to retain the Invesco Perpetual Income and High Income funds on its platform serving financial advisers.
The business had previously proposed removing these funds following the departure of long time portfolio manager Neil Woodford (pictured), who left to set up Woodford Investment Management.
“Skandia is now confident that the TERs of the funds are stable and, furthermore, has been able to reduce the TERs of the Skandia Invesco Perpetual Income and High Income funds to 1.2% (from their current 1.3%) and cap them at that level,” Skandia said.
“Given those changes, Skandia is now able to keep the Skandia Invesco Perpetual Income and High Income funds open and will not transfer the assets to the new Woodford Income fund.”
Paul Feeney, chief executive of Old Mutual Wealth, added: “What can I say, but ‘we listened’? 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. We have acted to keep those funds open at a reduced cost. With the continued support of Woodford Investment Management, we have been able to add the new Woodford fund to the range at the original price. This gives advisers and their customers’ choice of where their money should be invested.”