View more on these topics

Charles Stanley latest to cut Woodford from best buy list

Woodford-Neil.WoodfordIM.2014.jpgCharles Stanley Direct has become the latest company to shun Neil Woodford’s flagship Equity Income fund from its list of preferred holdings.

Charles Stanley’s Foundation Fundlist is a 54-strong set of the firm’s “highest conviction investment ideas” across active, passive and investment trusts covering major sectors.

The LF Woodford Equity Income Fund had been on the list since January 2015, but has now been removed over concerns that the “overall performance from this equity income fund may become increasingly impacted by a relatively small number of existing high growth and earlier-stage businesses in the portfolio”.

Key businesses to have hit the Woodford portfolio in recent months include sub-prime lender Provident Financial.

Charles Stanley Direct pension and investment analyst Rob Morgan says that while Woodford boasts an “admirable record” and deserves credit for transparency over his funds’ underlying holdings and willingness to admit poor performance, Charles Stanley has decided to remove the fund while it reviews its options.

Keeping faith in Neil Woodford

Morgan says: “We still believe it is a high quality fund and following a tricky period there may be considerable potential in the portfolio as it currently stands. Yet the Foundation Fundlist is reserved for our highest-conviction investment ideas, so we feel it is right to remove the fund from the list at this juncture while we monitor it further and explore various options within the UK equity income sector.”

Some of the most popular funds in the Foundation list, including Fundsmith Equity and JOHCM UK Equity Income, already target UK equities, but Charles Stanley says it is willing to look at LF Woodford Income Focus as part of its review given it does not invest so heavily in smaller and high-growth businesses.

Other fund houses to have ditched Wooford include Architas and Aviva.

Recommended

Paul-Lewis-grey
7

Paul Lewis: FSCS funding row misses crucial point

The wrong people are paying the levy and the fund is not going to enough of the right consumers Consumers of financial services firms are not being given enough compensation when they are missold, misadvised or out-and-out cheated. Or, rather, not enough clients are being given compensation. We know that because, in most cases, they […]

Offshore amnesty could bring in 5bn

The Government’s amnesty for UK taxpayers with undisclosed offshore bank accounts could net the Treasury up to 5bn.

db pension rights
6

Steve Webb: Let people pay transfer advice costs from DB pension rights

Offsetting the cost of advice this way would benefit clients and advisers alike One of the multiple barriers to better take-up of financial advice is that some people are unwilling or unable to meet the upfront cost. In response to this, the government has allowed people to take small chunks (three lots of £500) out […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment