Aberdeen co-head of multi-manager Aidan Kearney says the firm has added Invesco Perpetual income guru Neil Woodford to act as a “put option” in its fund range.
Aberdeen has allocated 2-3 per cent of cash from its port-folios to Woodford as the team believes he is the perfect protection to defend assets if the market falls or tops off.
Woodford’s negative outlook on the UK economy has been well documented in recent weeks. He believes the economy is not likely to recover for ano-ther three or four years and that green shoots in the equity market are “illusory”.
Kearney says: “Woodford’s outlook and decision to invest in pharmaceuticals, tobaccos, utilities and telecoms has seen him lag behind the market in the recent rally. However, these defensive areas are ideal as an insurance policy and if the wheel turns, it is precisely where people will want to be.”
Hargreaves Lansdown investment manager Ben Yearsley says: “Woodford’s defensive decision means a turn in markets is likely to be positive for him, so I can see the logic in adopting him as something of a quasi put option.”
Aberdeen has completed the transfer of the £700m Credit Suisse multi-manager range after the appointment of the fund managers at the start of July.