Neil Woodford’s Invesco Perpetual high-income fund tops Principal’s latest equity income fund manager survey.
The fund heads Principal’s white list followed by Artemis income and F&C stewardship income. Woodford’s equity income fund came fourth and Principal praises the man-ager’s “stunning track record”.
The report notes that both Woodford and Artemis income manager Adrian Frost have benefited from underweight positions in both metals and oil and says Woodford in particular has moved his fund to a more defensive stance amid concerns about inflation.
Principal says its decision to stick by F&C stewardship income manager Ted Scott in its 2006 mid-year update has been rewarded as his fund has been the best performer over the past 12 months. The report says: “There is a high degree of consistency in the names that appear in the white list. There is a reason for this – a small group of fund managers is capable of outperforming on a consistent basis.”
Also on the buy list are new entrant Standard Life UK equ-ity high income and Axa Framlington’s monthly income and equity income funds.
The report says both Axa Framlington funds have been turned round since George Luckraft took over the management of the portfolios in 2002.
Jupiter income manager Tony Nutt has slipped down the list but remains a buy. Principal says his performance suffered over the past 12 months from moving out of commodity stocks too early.
Two other new entrants made the list – Marlborough UK equity income and Norwich UK equity income.