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Woodford reveals his shock-proof top 10
by Danielle Levy on Jul 07, 2014 at 07:25
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.
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