Neil Woodford’s new fund, the CF Woodford Equity Income fund, has attracted £1.6bn of inflows during its initial offer period.
Despite receiving the record amount, experts are confident the size of the fund will not hamper the manager’s performance.
Discretionary fund manager Well-ian Investment Solutions senior investment director Chris Mayo says: “He is obviously an exceptional manager and was always going to take in a lot of money. He has run a lot of money before so the volume will not be a worry to him. He is going to take his time to get the right pricing for certain holdings but I think he will be fine with the size of the market he is investing in and it is big enough for him to cope with.”
Bestinvest managing director Jason Hollands expected Woodford to attract more money at launch.
He says: “I think £1.6bn was the bottom end of my expectations as I recently met with some analysts who expected it to be nearer £5bn.
“Neil likes to talk passionately about smaller companies but in the scheme of things he invested in big, blue chip companies. It would be a problem for a lot of fund managers but not for him.”
Three Counties IFA Andrew Alexander agrees the record early inflows should not present a difficulty for Woodford.
He says: “The fact he has attracted £1.6bn is irrelevant. Woodford has already said he is going to manage the fund the same way as before.
“We are talking about a fund that will hold 40 to 45 of the largest, most liquid names, so it will not be difficult with this fund size. It is not like he is coming to market with something completely different.”