Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a709765
What would a run on Woodford's fund mean for investors?
by Danielle Levy on Oct 15, 2013 at 15:48
His top UK equity income picks include funds run by Majedie, Heronbridge and JO Hambro Capital Management.
Nonetheless, he was keen to describe Woodford as a 'fabulous manager who deserves all of the respect he receives'.
He also pointed out that Woodford's successor Mark Barnett will not signal a significant change for the strategy.
'Mark Barnett is an experienced and capable investment manager. You have got a big ship with a change of captain,' Sippetts explained.
He added: 'You can say with a high degree of confidence that that where Barnett goes next, he will continue to do things that Neil Woodford has been doing and Mark Barnett has contributed to for the last 10 years. Our next move will be to exit but that is because it is a very junior position.'
Hargreaves Lansdown, responded to the news by taking it off the Wealth 150.
Mark Dampier, head of research, commented: 'We believe investors need not consider selling the fund now and I myself will be remaining invested.
'For new investors we would however suggest waiting until the new manager has taken over the fund and have suspended it from the Wealth 150 for the time being.'
Jason Hollands, managing director of Bestinvest, added: 'With huge assets under his management, rival groups will be salivating at the potential opportunity arising from this news in the belief the tectonic plates in the income world could be shifting.
'There is however no need for rash action. Woodford and Barnett have worked together for nearly 20 years and Barnett is currently a three star rated Bestinvest manager.
News sponsored by: