Invesco Perpetual stalwart Neil Woodford has had an uncomfortable start to the year after seeing both his income funds take a performance hit.
Woodford’s £6bn income and £8.5bn higher income funds are currently among the bottom five out of the 90 funds in the UK equity income sector in terms of total return in 2008.
High income is down by 10.39 per cent and income is down by 10.49 per cent, according to figures released by Lipper.
Invesco Perpetual dethroned Fidelity as the UK’s biggest fund firm in October 2007, with £30.56bn funds under management, of which Woodford managed £18.3bn, equating to 59 per cent ofthe firm’s total funds under management.
Chelsea Financial Services managing director Darius McDermott says: “You have to expect short-term falls from managers with bigsector bets. In Woodford’s case, he is famously underweight in banks and overweight in tobacco and utilities but in the long term you always see his bets are more successful than not.
“He will still be our biggest Isa seller in 2008, as he has been for a long time now.”