Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Clive Beagles: inflows halved ahead of Woodford launch

Clive Beagles: inflows halved ahead of Woodford launch

Clive Beagles, manager of the £2.6 billion JO Hambro UK Equity Income fund, said inflows into his fund have halved as Neil Woodford readies the launch of his rival product.

The JOHCM fund was initially soft-closed to new investment in February 2011 at £750 million, but is now more than three times that size, helped by strong performance that has made it top quartile over one three and five years.

Since April, when Woodford left Invesco Perpetual to launch his own firm, inflows into Beagle’s fund have fallen by around 50%, despite the sector taking in a record £500 million in that month.

‘We have seen a slight lessening up of new money, maybe because Mr Woodford is about to start and might be taking some of the faster money,’ the Citywire AA-rated manager said.

‘It will be what we want to see, as we like to invest across the spectrum, including at the lower cap end and we quite certainly would not want many more inflows.’

Beagles said it would be ‘a relief’ if Woodford took some of the future flows in to UK equity income, as his fund had become ‘bigger than we perhaps anticipated,’ and noted that the two funds were often used in portfolios to complement each other because they differ in style.

‘It’s perverse- most managers want more money but we want less so we can protect the product,’ he explained. ‘I suspect our dear friend Mr Woodford will take a bit more in the next three months’.

The manager does not think appetite has peaked for UK Equity Income funds.

‘Ultimately, equities still look better value than bonds, so I expect the flow environment will remain positive,’ he said.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter