Dampier defends Woodford income strategy
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Hargreaves Lansdown head of research Mark Dampier has defended Invesco Perpetual UK equity income guru Neil Woodford’s performance, and says now is the best time to invest.
Woodford’s £6.4bn income and £8.6bn higher-income funds are 17th and 18th respectively in the UK equity income and growth sector from January 1 to September 25, according to figures from Lipper.
However, Dampier says this is due to the manager’s long-term, bearish economic outlook and stocks that match this view - namely those with strong balance sheets and stable business models such as AstraZeneca and GlaxoSmithKline.
Dampier says: “Since March, these have been left behind as investors anticipated a V-shaped economic recovery and bought more cyclical stock. Woodford thinks this is highly dangerous and likens the situation to that of 1999/2000 when internet stocks took off and left the solid, dependable companies behind.”
Dampier adds: “He has actually raised the dividend on his funds this year while many other equity income funds have cut theirs by as much as 25 per cent.”
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Readers' comments (1)
Paul Holmes | 20 Oct 2009 10:10 pm
He's a genius - stick with him. I hope he's right - I'm waiting for another chance to buy low..
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