Invesco Perpetual has said investors have withdrawn slightly more than 4 per cent of the assets in Neil Woodford’s UK equity income funds since he quit.
In an update for US analysts earlier today, seen by Investment Adviser, Invesco president and chief executive Martin Flanagan revealed outflows on the funds were “less than £1bn” between the resignation day on October 15 and today (October 31).
The resignation earlier this month sparked concerns that Mr Woodford’s flagship £10.6bn Income and £13.9bn High Income funds would collapse in size as investors flocked into rival products.
The official update debunks reports earlier this week that investor withdrawals from the fund had reached as much as 10 per cent.
“We are pleased to report that client reaction to the departure news has been calm, professional and highly supportive of Mark Barnett, the manager who will take over Neil’s funds,” Mr Flanagan told analysts.
“It is early days, but redemptions across both Invesco Perpetual High Income fund and Invesco Perpetual Income fund, beyond the historic redemption rate, have totalled less than £1bn or slightly more than 4 per cent of the total assets under management.
“This is at the positive end of the scenarios we modelled and planned for.”
Mr Woodford runs more than £33bn in total, making him the biggest fund manager based in the UK.
His shock resignation triggered an unprecedented industry reaction, with investors comparing it to the resignation of Anthony Bolton from Fidelity in the early 2000s. Several fund brokers suspended their ratings on the announcement of Mr Woodford’s forthcoming departure.
Although Mr Woodford will wait until April 2014 before handing the flagship funds to Mr Barnett, Ciaran Mallon has already taken on the equity component of the group’s Monthly Income Plus and Distribution funds alongside the existing fixed income managers Paul Causer and Paul Read.
Mr Woodford has resigned to launch his own asset management business and has declined to provide full details until after he leaves Invesco.
