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.

Neil Woodford v Mark Barnett: how do their numbers compare?

Neil Woodford v Mark Barnett: how do their numbers compare?

Investment is famously motivated by a balance between fear and greed: Neil Woodford’s investors were in many cases in his fund because they appreciated his ability to walk the line between the two.

His flagship mandate, the £14 billion Invesco Perpetual High Income fund, has returned 208% since 1999 versus an IMA UK Equity Income return of 66%. Over that period his deepest drawdown has been -17.49% versus a peer average figure of -23.38%.

That lack of volatility was enough for many investors to forgive the fact that for much of the time within that period – particularly since the 2009 bounce – his compound annual return has run below peer-average.  

Can his replacement Mark Barnett replicate those numbers? Over the last 10 years Barnett lags Woodford by 197% to 218%. He knocks the peer average of 119% out of the ring however.

Over five years – a period in which Woodford has proved resistant to much of the high market-beta momentum which has carried other managers – the situation is reversed, with Barnett returning 90% to 72% versus the peer average of 65.9%.

Over time, Barnett’s drawdown has consistently run a few basis points below Woodford’s – for instance in the depths of 2008 he recorded a maximum discreet loss of 19.89% versus -17.49%.

But equally in recent years he has consistently offered higher compound annual returns – particularly since the beginning of this year as markets have rallied hard globally.

So occasionally more return, consistently a little more risk – although given that is relative to one of the safest pairs of hands in UK equity management, that is probably not cause to start panic selling.   

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 Commodity conundrum, beleaguered bonds and a US dilemma

Commodity conundrum, beleaguered bonds and a US dilemma

This week’s episode of Investment Pulse looks at the impact of falling commodity prices on banks, dangers of negative yield curves and whether US equities can continue to deliver.

Play Mirabaud's Pyshkin: The US will continue to grow dividends

Mirabaud's Pyshkin: The US will continue to grow dividends

The global equity income manager has invested half of his fund here.

Play Potential US rate rise, cheap oil & the Europe opportunity

Potential US rate rise, cheap oil & the Europe opportunity

This week we analyse the implications of a possible rise in US interest rates, the impact of cheap oil and the European equity opportunity.  

Wealth Manager on Twitter