STANDARD Life Aberdeen has received a boost after being appointed to manage a fund formerly run by controversial asset manager Neil Woodford.
The Edinburgh-based giant’s Aberdeen Standard Investments arm will take over management of the £268 million LF Woodford Income Focus Fund (WIFF) from December 31.
Dealings in the fund were suspended in October by the administrator to the vehicle amid a rush by investors to pull their money out.
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The administrator, Link Fund Solutions, said it had appointed Aberdeen Standard Investments (ASI) after careful consideration of all the options. It is thought these included winding the fund up.
The appointment provides a vote of confidence in the active investment approach followed by ASI and the capabilities offered by the organisation.
“We believe ASI is best placed to seek to add value for investors,” said the administrator. “ASI has confirmed to us that it will employ its significant investment resources to manage the Fund for the long-term benefit of existing investors.”
The endorsement will be welcomed by ASI given the challenges the business has faced since it was created following the merger of Standard Life and Aberdeen Asset Management.Assets managed by ASI fell to £505.1bn in 2018 from £562.1bn in 2017.
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ASI said the fund will be run by experienced UK equity income managers Charles Luke and Thomas Moore. They will build a high conviction portfolio of around 30 liquid UK equity holdings.
The fund will be renamed LF ASI Income Focus Fund, subject to regulatory approval. The administrator said the fund is expected to re-open no later than February 20.
Mr Woodford said in October that he was closing his eponymous business after he was sacked from his flagship £3 billion Woodford Equity Income Fund, which will be wound up.Schroders was appointed to manage the £619m Woodford Patient Capital Trust.
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