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Dampier defends Woodford income strategy

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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  1. 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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