Woodford Investment Management has rejected press reports that its lead manager Neil Woodford is involved in talks with former Invesco Perpetual colleagues over potentially buying up shares from his old funds.
However, the firm has said Mr Woodford is keen to enter talks with Invesco to enable him to take over shares from his old Income and High Income portfolios rather than having to approach the stockmarket directly.
Mr Woodford is expected to raise a large amount of money for his new CF Woodford Equity Income fund and deploying the cash into the stockmarket could be a tricky process.
The manager is set to build up a portfolio that is similar to the Invesco Income and High Income funds he managed until recently. Buying shares directly from those funds would mean he could avoid approaching the markets at all.
“If you are motivated by the interests of your clients, you want to keep the friction costs of moving as low as possible,” Mr Woodford said.
“To do that, you have to have two consenting adults. I am sure there will be an accommodation.”
It is not yet known if Invesco Perpetual’s Mark Barnett, who now runs Mr Woodford’s old funds, is prepared to engage in share swap talks.
The reports on a potential share swap come after Investment Adviser reported in mid-May that Mr Woodford was asking Invesco to enter talks to potentially hand him some of the unquoted investments he made in his years at the firm. Invesco’s Mr Barnett has outlined plans to offload the investments.