Cofunds has only been given access to the 0.75 per cent annual management charge for Neil Woodford’s new equity income fund, in spite of being the largest advised platform in the UK.
The platform will have the CF Woodford Equity Income fund available for investment from the beginning of the fund’s offer period on June 2.
But instead of the fund’s Z-share class, which charges an ultra-cheap 0.65 per cent annual fee, the platform only has access to the slightly more expensive option.
“Cofunds is not presently offering the Z class as we are open architecture and Z class is currently only available to those offering guaranteed distribution. We allow advisers to choose what funds they want and cannot dictate which funds people choose,” a spokesperson said.
The 0.75 per cent charge is still likely to be cheaper than rival funds, though, as Woodford Investment Management intends to incorporate all of the fund-related expenses that comprise the ‘ongoing charge’ into its annual charges.
Broking giant Hargreaves Lansdown is understood to be still in discussions with Woodford Investment Management about which share class it will get.
