At the end of another week, FE Trustnet looks over the news stories that have broken about the asset management industry over recent days.
Neil Woodford is expecting a surge of demand for his new trust, there’s been changes in Jupiter UK Growth’s management and Aberdeen has unveiled some products to capitalise on the pension reforms.
Here’s what’s been happening this week.
Woodford trust maximum lifted to £800m
Woodford Investment Management has increased the maximum launch size of the Woodford Patient Capital Trust to £800m, following higher than expected investor demand for the new offering. 
The trust was targeting a raising of £200m with a limit of £500m. However, a supplementary prospectus was unveiled this week allowing a maximum of £800m to be raised.
Craig Newman, chief executive of Woodford Investment Management, said: “Over the past few days it has become clear that the concept of investing patient capital in early-stage and early-growth businesses has captured investors’ imagination – so much so that we may exceed £500m during the offer period.”
“Until the offer closes we won’t know whether the trust will raise closer to £500m or £800m. But what we do know is that Neil and his team are very comfortable managing the investment strategy and deploying the eventual initial capital raised in line with the time frame set out at launch.”
Woodford Patient Capital’s issue closes on 17 April and new shares are expected to start trading on 21 April.
Steve Davies to assume full responsibility for Jupiter UK Growth
Steve Davies has been named sole manager of the £1.4bn Jupiter UK Growth fund after co-manager Ian McVeigh was appointed to the newly created role of head of governance.
As a result of the change, Jupiter has proposed merging Davies’ Jupiter Undervalued Assets fund into Jupiter UK Growth given their similar remits. This move is subject to both regulatory and unitholder approval.
Davies said: “I would like to thank Ian for his support and encouragement over the years. He has been a great mentor, colleague and co-manager and I look forward to working with him in his new role.”
“There will be no change to the investment process that we have successfully developed on the fund over the past decade, and I continue to see lots of exciting opportunities to tap into.
Davies will take over the fund on 1 May 2015. McVeigh’s new role will see him oversee Jupiter’s engagement with the companies the firm invests in, which is an area he has developed a “particular interest” in over recent years.
FE Analytics shows Jupiter UK Growth has significantly outperformed both its average peer and its FTSE All Share benchmark since Davies was appointed co-manager in January 2013.
Performance of fund vs sector and index over manager tenure
Source: FE Analytics
Aberdeen launches multi-asset funds for retirement market
Aberdeen Asset Management has launched a suite of four multi-asset funds following the Government’s move to free up pension savings.
The Aberdeen Multi Asset Conservative, Multi Asset Growth 1, Multi Asset Growth 2 and Multi Asset Growth 3 funds will reside in the IA’s Unclassified, Mixed Investment 0-35% Shares, Mixed Investment 20-60% Shares and Mixed Investment 40-85% Shares sectors respectively.
Aberdeen’s Investment Solutions team will oversee the four portfolios, which will invest in passive, enhanced index and actively managed funds with a long-term view and an eye on volatility.
Steven Nicholls, head of defined contribution at Aberdeen Asset Management, said: “The pension reforms which primarily bring more flexibility and freedom to post-retirement investing also act as an important reminder of the need to start a pension as early as possible and to make sufficient contributions.”
“These four multi-asset funds have been launched to offer low cost solutions to individuals’ retirement objectives.”
Aberdeen Multi Asset Conservative has an ongoing charges figure of 0.5 per cent, while the remaining three have ongoing charges of 0.6 per cent.
AXA IM to merge Luckraft's equity income funds
George Luckraft's £129m AXA Framlington Monthly Income and £132m AXA Framlington UK Equity Income funds will merged under proposals from the asset management house.
The combined fund, which will use the AXA Framlington Monthly Income name, will have greater economies of scale thanks to its large size and will meet client demand for monthly income.
Robert Bailey, head of UK wholesale at AXA Investment Managers, said: “We expect demand for income generating products to only increase, not least in response to the changes in the retirement market, and we believe that the AXA Framlington Monthly Income fund is well placed to meet this need.”
The merger is still subject to unitholder approval, with a vote scheduled at an annual general meeting on 25 April.
Since taking over AXA Framlington Monthly Income in September 2002, Luckraft has made a total return of 131.26 per cent and underperformed the FTSE All Share and the average peer. An initial investment of £1,000 would have yielded £857.43 in income payouts over this time.
Performance of fund vs sector and index over manager tenure
Source: FE Analytics
Oxley arrives at Old Mutual Global Investors ahead of launch
Russ Oxley joined Old Mutual Global Investors this week as head of fixed income absolute return and one of his first jobs will be to gear up for the launch of new products.
Oxley was hired by the firm in October last year, after leaving Ignis following its acquisition by Standard Life Investments. OMGI also hired his former Ignis colleagues Adam Purzitsky, Paul Shanta, Huw Davies, Joshua Heming and Jin Wong.
Subject to regulatory approval, OMGI plans to launch a suite of absolute return government bond funds in autumn this year. At Ignis, the team worked on the £4bn Ignis Absolute Return Government Bond fund.
OMGI chief executive Julian Ide said: “This is a very exciting development for Old Mutual Global Investors. Russ and his team are an excellent strategic and cultural fit and an exciting and dynamic addition to the business.”
LGIM hires emerging market bond pros
Legal & General Investment Management (LGIM) has hired a portfolio manager and credit analyst to complete its dedicated fixed income emerging markets (EM) capability led by Uday Patnaik.
Philip Meier was a senior portfolio manager in AXA IM’s emerging market fixed income team while John Gray was a credit analyst specialising in financial issuers at Royal Bank of Scotland.
Patnaik, head of EM fixed income at LGIM, said: “I am excited to welcome Philip and John to the team, adding depth and experience to our active EM capability. The team now brings together broad and deep experience across both hard and local currency sovereign, corporate and financial issuers.”
