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Woodford flagship funds downgraded

Woodford
Woodford: Long-term strategy

Financial Express has downgraded Invesco Perpetual fund guru Neil Woodford’s flagship income and higher-income funds.

The firm’s crown ratings are a quant-based system designed to highlight funds that have produced strong performance over three years and show consis-tency on a risk-adjusted basis relative to their peer groups.

Financial Express investment product consultant Rob Gleeson says: “Woodford’s funds have been downgraded due to a deterioration in both their consistency and alpha scores. His focus on limiting the funds’ downside has acted as a drag on growth in the short term.”

Woodford’s £8.1bn income and £10.3bn higher-income funds are both currently thirdquartile in the IMA UK equity income sector over three years.

A spokeswoman for Invesco Perpetual says: “Neil has always taken a long-term perspective and remains, as always, focused on investment fundamentals. He firmly believes that his strategy is an appropriate one and that it will produce good returns for his investors over the next five years.”

Hargreaves Lansdown head of research Mark Dampier says: “I am not surprised as he has not done well recently. Some of the big names in UK equity income have struggled in recent times as small and mid-caps outperform. His view that the economy is set for anaemic and lacklustre recovery is something I do agree with.”

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  1. If someone only wants to tie up funds for the short term they should be in a bank account so short term performance, whilst sometimes an indication of falling standards, is really a side issue.

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