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Chris Salih
Woodford says his income duo are not depending on a double-dip to perform
Woodford: ‘They can perform well in almost any given environment’
Invesco Perpetual head of investments Neil Woodford says he does not need a double-dip recession in order for his £7.4bn income and £9.5bn higher-income funds to outperform.
He believes that a return to recession with a double-dip is likely in the UK, claiming the outcome will be “dictated by the pace and scale of fiscal consolidation”.
But he adds: “The stocks that I have invested in do not need a double-dip to demonstrate their undervaluation. I think they can perform well in almost any given environment.”
Woodford has also dismissed concerns that he will struggle to find sufficient levels of income for his funds in the UK market.
He has a historic yield of 4.1 per cent on both income funds and says that his research has started to delve into the international markets to a greater extent.
Woodford says: “I have said before that although I am not an international investor, when I do the research I need to do, for example in Astra Zeneca or Glaxo, inevitably, I look at the global pharmaceutical industry in trying to understand the dynamics that affect it.”
Woodford says it is unlikely he would have more than 15 to 20 per cent of overseas exposure in his high-income fund.
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