FundsNetwork to offer first external investment trust

FundsNetwork to offer first external investment trust

Fidelity FundsNetwork is set to become the first of the big three adviser ‘fund supermarkets’ to host third-party investment trusts as it moves to bring Neil Woodford’s new vehicle onto the platform.

FundsNetwork is aiming to offer UK fund giant Neil Woodford’s new Patient Capital investment trust on its platform and plans to expand its offering of investment trusts and exchange traded funds (ETFs).

A spokesperson from FundsNetwork said: “It is our clear intention to build a scalable solution to support a wider range of both investment trusts and also ETFs.

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“We cannot confirm timings at this stage but in announcing our intention to support this initial public offering we are signalling our clear intention to drive this forward as quickly as we can.”

Cofunds, FundsNetwork and Old Mutual Wealth, formerly Skandia, the top three fund supermarkets, have yet to offer third party investment trusts. Back in November of last year, FundsNetwork revealed to FTAdviser its intention to break ranks with the other two and include closed-ended funds.

FundsNetwork already offers a range of five Fidelity investment trusts and approximately 50 exchange traded funds.

The prospectus for Mr Woodford’s new trust is set to be released at the end of February, and the trust is expected to be listed on the London Stock Exchange in mid-April.

The trust will invest up to 75 per cent of its assets in listed and unlisted smaller companies, with themes such as biotechnology and peer to peer lending likely to play a prominent role.