Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a760366

Woodford reveals his shock-proof top 10

by Danielle Levy on Jul 07, 2014 at 07:25

Woodford reveals his shock-proof top 10

Renowned fund manager Neil Woodford has unveiled the top 10 holdings in his new fund that he believes are built to last.

Woodford's top position in the fledgling CF Woodford Equity Income fund is AstraZeneca at 8.3%. The star manager publicly opposed Pfizer's takeover bid the company. It is followed by fellow pharma GlaxoSmithKline at 7.1% and British American Tobacco at over 6.2%.

The top 10 bears a perhaps unsurprising resemblance to the top 10 of his former fund, Invesco Perpetual Income , now run by Citywire AA-rated Mark Barnett, dominated by big pharma and tobacco. Other holdings that cross both top 10s are BT, Roche, Capita and Rolls-Royce.

Woodford's top 10 differs with the inclusion of Imperial Innovations and Reynolds American, however.

Woodford said the portfolio seeks to avoid sectors that he believes are vulnerable to a faltering global economy.

'There is significant emphasis in my new fund on the tobacco and pharmaceutical sectors. These two sectors are resilient to falling demand, have strong balance sheets and attractive valuations,' he added. 

Woodford's view on the global economy remains unchanged, he noted: 'The liquidity flows that have supported asset prices over the past five years are going into reverse, while growth in many parts of the world is being downgraded.

'The global economy and financial markets both face a tricky time over the next few years, but there are still many undervalued assets in equity markets and it is these opportunities that the fund is seeking to exploit.'

Comparing himself to a pilot, Woodford said:'We have taken off and we have already gained a lot of height, but we are not yet at cruising altitude. The portfolio will continue to evolve.'

The fund raised £1.6 billion in its offer period.

1 comment so far. Why not have your say?

Badders

Jul 07, 2014 at 08:29

Big positions in individual stocks adds risk no matter what you think about the company or sector.

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the funds

  • Invesco Perpetual Income Inc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the fund managers

  • Neil Woodford
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Mark Barnett
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

On the road

Click here to find out more from the Audience Development team.

Read more...

Brewin revenues fall on trail switch

by Danielle Levy on Jul 23, 2014 at 08:15

Sorry, this link is not
quite ready yet