Which stocks drove Woodford’s 17% Equity Income returns?


Woodford Investment Management has revealed the performance of all individual stocks within the giant £6.14bn CF Woodford Equity Income fund for the first time.

The fund delivered returns of 16.93 per cent for the year ended 30 June versus a FTSE All Share average of just 2.60 per cent. The top contributor to the overall performance was Allied Minds, an intellectual property development company which made up on average 2.95 per cent of portfolio over the year.

The holding delivered 3.21 per cent of the 16.93 per cent overall fund performance for the period.

Also in the top five holdings are biotech firms 4D Pharma, contributing 1.58 per cent, Prothena (1.39 per cent), Imperial Tobacco (1.25 per cent) and Reynolds American (1.19 per cent).

Woodford Investment Management chief executive Craig Newman says: “A year ago, we set out to challenge industry ‘norms’ and are proud of the initiatives we’ve created such as our innovative, low-cost fee structures and openness regarding portfolio holdings.

“A year on, releasing quarterly performance contribution data for the CF Woodford Equity Income fund is a natural next step, providing investors with the transparency and candidness they should expect.”

The fund’s worst performer over the year was electrical power generation company Drax, which made up 1.55 per cent of the portfolio and accounted for -0.98 per cent of the fund’s overall performance.

Other holdings in the bottom five, mainly invested in utilities, health care and technology sectors, include GlaxoSmithKline (-0.91 per cent), Rolls-Royce (-0.57 per cent), Rightster (-0.45 per cent) and Centrica (-0.30 per cent).