Skandia has decided to keep open the Skandia Invesco Perpetual Income and High Income funds on its Skandia Life range.
The provider recently said it intended to close the funds, but since then financial advisers have said they want to remain invested in the Invesco Perpetual funds and asked that the funds remain open.
Skandia says it is now confident that the TERs of the funds are stable and, furthermore, has been able to reduce the TERs of the Skandia Invesco Perpetual Income and High Income funds to 1.2 per cent (from their current 1.3 per cent) and cap them at that level.
The reduction and cap on the TERs of the Skandia Invesco Perpetual funds applies to the Skandia Life funds only, not the underlying Invesco Perpetual funds.
The OMW Old Mutual Woodford Income Fund will still be added to the Skandia Life range at the price originally agreed (1.1 per cent TER), giving financial advisers the choice of whether to keep their clients invested in the Invesco Perpetual funds or move to the new Woodford fund. The new fund will open in October.
Woodford Investment Management remains a key fund group partner of Skandia’s.
Paul Feeney (pictured), chief executive of Old Mutual Wealth, says: “What can I say, but ‘we listened’? What we heard from advisers and their customers was that they welcomed the addition of the Woodford Income fund to our life range and the price we have negotiated for them, but they wanted the Invesco Perpetual funds to remain open. We have acted to keep those funds open at a reduced cost. With the continued support of Woodford Investment Management, we have been able to add the new Woodford fund to the range at the original price. This gives advisers and their customers’ choice of where their money should be invested.”