View the article online at http://citywire.co.uk/money/article/a712740
Eight top income contenders for Woodford’s crown
Financial advisers choose the most promising fund managers in the frame to claim Neil Woodford’s mantle.
Neil Woodford’s £11 billion Invesco Perpetual Income and £14 billion High Income funds currently dominate the UK equity income sector in size, but as the star manager prepares to leave Invesco in April 2014, many investors are mulling over alternatives.
Dennehy said he recommended them to investors looking for consistency of payout growth.
‘The Invesco Income and High Income fund have excelled primarily as vehicles for total return,’ he said. ‘If you want a focus on income generation and payout growth, you should choose Artemis Income.’
For those investors looking for a ‘young’ Neil Woodford, David Burren (pictured), managing director of Gloucestershire-based Warwick Butchart Associates, said he liked Nick Kirrage and Kevin Murphy of Schroder Income , another pair of Citywire AA-rated managers.
Jamie Fergusson, a consultant at London-based PQR Financial Planning, agreed with this choice.
‘Homespun talent hired from within the team at Schroders, these two managers look for companies that are out of favour, but that have the capacity to increase dividends over time,’ he said.
Woodward started using the fund in March and currently has 5% of clients’ income holdings there. The fund yields 3.8%
‘Cholwill’s fund is not as widely held as some of the better-known names, but it has very solid performance characteristics,’ said Woodward.
Smith (pictured) started using Hudson’s Cazenove UK Equity Income fund in January.
‘He’s in his early 40s: just entering the prime years in which to build his reputation as a stock picker and strategist,’ said Smith.
Keith Churchouse, a director of Chapters Financial in Guildford, Surrey, has backed the Unicorn UK Income fund of Citywire AA-rated John McClure since mid-2010. He called McClure a ‘star for future times’.
‘At around £300 million in size, it’s not one of the giants, but it is big enough to inspire confidence,’ said Churchouse (pictured). ‘Its track record is very strong.’
Burren also recommended Rebecca Edelman of Neptune US Income .
‘She runs one of the smallest funds [at £19.3 million] and is probably the youngest green shoot of the new crop,’ he said.
Edelman joined Neptune in April 2008 as an investment analyst and became a fund manager in September 2010.
She maintains a balanced portfolio by investing in three silos: recovery, structural growth and tactical plays, with 15 stocks in each.
The fund yields 3.5%.
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Look up the funds
- Invesco Perpetual Income Inc
- Invesco Perpetual High Income Inc
- Artemis Income R Inc
- Schroder Income A Inc
- Royal London UK Equity Income A
- Cazenove UK Growth & Income B Acc
- Unicorn UK Income A Inc
- Neptune US Income A Acc GBP
Look up the fund managers
- Neil Woodford
- Adrian Frost
- Adrian Gosden
- Nick Kirrage
- Kevin Murphy
- Martin Cholwill
- Matthew Hudson
- John McClure
More from us
- Woodford's High Income cut from Citywire Selection: here are some alternatives
- Mark Barnett: I’m more flexible than Woodford
- Investec exploits Woodford exit to up Edinburgh trust stake
- Investors seek alternatives after Woodford quits Invesco
- Neil Woodford v Mark Barnett: how do their numbers compare?
- Neil Woodford to leave Invesco Perpetual
What others are saying
- Dennehy Weller & Co
- Warwick Butchart Associates
- PQR Financial Planning
- Carrington Investments
- Austyn James Consulting
- Chapters Financial
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by James Carthew on Dec 22, 2014 at 10:50