Skandia said it is switching money from the Skandia Invesco Perpetual Income and High Income life mandates – run by Barnett since March this year – into the CF Woodford Equity Income fund, following client demand.

Skandia’s multi-billion life range offers its personal pension clients a wide range of funds, but it will now close the two Invesco portfolios, replacing them with Woodford’s fund later this year.

A Skandia spokesperson said: “The Invesco Perpetual funds were previously run by Neil Woodford, and following client demand we are making this change so our clients can still have access to his fund.”

Skandia will switch the money across on 9 October.

Laith Khalaf, Senior Analyst at Hargreaves Lansdown, said: “We suspect Skandia will be the first in a line of life companies who switch Invesco Perpetual investors into Woodford’s new fund.

“This is still a pretty bold move. Life companies do close funds from time to time because of lack of investor interest, but to switch from one manager to another in this way is a highly discretionary call.”

“On one level the switch does make some sense: most savers will have invested to get access to Woodford in the first place. However closing the Invesco funds down leaves no option for those investors who are happy with the job Barnett has done and who want to stick with him.”

Skandia said those clients wishing to stick with Barnett can transfer to its Invesco Perpetual Strategic Income fund mandate prior to its planned switch.