Adviser network Openwork’s asset manager Omnis Investments is to replace Woodford Investment Management as manager of its £330m Omnis Income & Growth Fund.

The decision is a further blow to Woodford Investment Management which suspended its flagship Woodford Equity Income Fund this week after a wave of redemptions and mandate cancellations, including St James’s Place Wealth Management.

Hargreaves Lansdown has dropped the Woodford Equity Income Fund from its Wealth 50 list of favourites.

Like many platforms and financial services providers using Woodford Investment Management, Omnis extensively promoted Woodford. Its Omnis Income and Growth Fund factsheet describes Neil Woodford as "one of the industry’s most celebrated fund managers." The site also includes several video interviews with and blogs from Neil Woodford talking about his investment strategy.

Openwork is one of the UK’s largest financial services networks with 3,900 financial advisers across the UK. It operates as a directly authorised, multi-panel distribution network.

Omnis Investments provides its clients with funds from selected fund managers and offers a managed portfolio service. It has £6.8bn under management and says the selection process for a new fund manager to replace Woodford began in May with a decision expected shortly.

It says it will “maintains its focus on ensuring the best outcomes for clients and the advisers that serve them.” It will continue to work with Woodford during the “transition.”

Omnis says its Income & Growth Fund is separate from Woodford’s Equity Income Fund, which was suspended on 3 June, and none of its assets under management are held directly by Woodford Investment Management.

Mike Morrow, wealth and platform director at Openwork, said: “We have been working hard with the Omnis Investment Team over recent months to ensure that the Omnis Income & Growth Fund is delivering to its mandate and have the utmost confidence in the value of the portfolio and the underlying investments within it.” 

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