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Mark Barnett: how I’m different to Woodford
by Dylan Lobo on Oct 18, 2013 at 12:30
‘I’m prepared to buy stocks which might not marry my economic view on the basis the market may re-rate that stock. Neil applied his macro view very rigorously and I’ve always felt there’s a more flexible approach.’
While Barnett’s performance statistics are compelling, the sheer scale of Woodford’s assets under management could pose a problem.
Once again Barnett does not seem to be daunted by this. ‘My stance has been to approach markets in the long term, which I’ve always done on a gradual basis. I don’t anticipate having to change that style.'
There is no guarantee Barnett will have quite as much to play with when he takes control of the fund next April with significant outflows anticipated. The matter is compounded by the fact Woodford is setting up his own fund firm, which is bound to attract large amounts of money from his followers.
‘We don’t know what the outflows will look like but we’ve done a lot of work on the liquidity profile of the fund to understand different levels of outflows,' Barnett says. 'We have plans to cope with this should it happen.’
Overnight the closest of allies will become the fiercest of competitors in perhaps what will become the biggest rivalry in the UK fund management industry. Wouldn’t it have been easier for Barnett to follow Woodford to his new firm?
‘The culture at Invesco Perpetual is exceptional and the culture for good fund management is exceptional. The resources we can throw at recruitment are among the biggest in the industry,' Barnett says 'You don’t reject these qualities.’
Message to investors
Invesco Perpetual distribution head Ian Trevers is convinced that in Barnett, the firm has the right man to fill Woodford’s shoes.
'Neil has been an incredible investor and it has been a privilege to work with him, and Mark is a natural successor to him. He has worked with him for 17 years and attended all the meetings with him. He also is in his own right a fantastic fund manager and his track record is exceptional,' Trever said.
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