View the article online at http://citywire.co.uk/money/article/a1001961
Woodford Equity Income hits £10bn
Neil Woodford may have pipped arch rival Terry Smith in getting his flagship equity income fund over £10 billion in assets for the first time.
Citywire understands the fund, which raised a record £1.6 billion at its launch in June 2014, broke the landmark figure on Friday, which may put it ahead of Fundsmith Equity which stood at £9.8 billion at the end of February.
We won't know for sure until we get figures for the end of this month in a few weeks' time.
Excluding institutional cash funds and funds denominated in currencies other than sterling, there are very few funds with more than £10 billion in assets. One of Woodford's old funds - the £11 billion Invesco Perpetual High Income - is an obvious example, as is the £25 billion Standard Life Investments Global Absolute Return Strategies fund and Richard Woolnough's M&G Optimal Income fund.
Both Fundsmith and Woodford Equity Income have been among the country's top-selling investments in recent years with Citywire A-rated Woodford and AAA-rated Smith enjoying star billing among investors for their impressive track records and clear investment philosophies.
The continued growth in Woodford Equity Income follows a relatively difficult 2016 which Woodford admitted had ‘tested his resolve’ with the fund lagging the FTSE All-Share's total return of 16.8% with a gain of just 3.2%.
Nevertheless, Woodford’s investment firm was still the sixth biggest selling asset manager in 2016, attracting net inflows of just over £1 billion, according to the Pridham report.
Hitting the £10 billion mark comes as Woodford prepares to launch the Woodford Income Focus fund, the third in his stable. It will offer a higher yield and hold more overseas stocks and therefore might have been expected to curb inflows into the main income fund.
Like its big sister, Woodford's new fund will enjoy the marketing support of Hargreaves Lansdown, unlike Fundsmith which has gathered its assets without a specific recommendation from the country's largest investment broker.
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Look up the funds
- CF Woodford Equity Income A Sterling Acc
- Fundsmith Equity Fund Feeder GBP I Acc
- Invesco Perpetual High Income
- Standard Life Inv Glo Abs Ret Strategies
Look up the fund managers
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