View more on these topics

Woodford reveals his biggest investment mistake

Neil Woodford New 620x430

Neil Woodford says his biggest investment mistake during his career is not investing enough in tobacco companies.

Speaking to Radio 5 live’s Wake up to Money, he said that he continues to back tobacco companies, despite other investors shunning the sector.

He said: “I’m paid to exercise investment judgement. I have to look at my investment universe and pick the best investments that I can and expose my investors to those investments and hopefully deliver attractive returns.

“And I have throughout my career believed the tobacco industry offers some very attractive characteristics. Probably, if I were to put my hand up, the biggest single mistake I’ve made in my career is not having enough tobacco exposure.”

Currently Woodford has more than £1bn invested in tobacco firms at Woodford Investment Management.

In his Woodford Equity Income fund his largest holding is Imperial Tobacco, at 7.67 per cent of the fund. British American Tobacco at 5.49 per cent and Reynolds American at 3.93 per cent are also in the fund’s top 10 holdings.

Performance attribution data published by the asset manager, which highlights which stocks have driven up performance, shows tobacco firms rank highly.

Most recent data shows that Imperial Tobacco was the second highest contributor, bringing 2.03 per cent of performance, closely followed by Reynolds American at 1.87 per cent.



Scott Gallacher: Sting in the Waspi tale

As an adviser it is no surprise I try to keep up to date with everything surrounding personal finance. This is not just for the continuing professional development requirement but also that I am passionate about the subject and want to be able to give my clients the best. Of course, the general public have […]


Pimco ‘to cut staff following mass outflows’

Pimco is expected to make staff cuts as a result of the flood of outflows the asset manager has suffered since self-titled ‘Bond King’ Bill Gross left the firm. Investment consultant NEPC has warned investors it anticipates Pimco will make cuts to its non-investment staff as it scales back the business as a result of […]


Aegon launches post-Pension Wise guidance offering

Aegon has launched a new guidance offering designed for customers who have already used the Government’s Pension Wise service. Aegon Assist, which is being trialled with a team of three staff, is targeted at customers who don’t have a financial adviser, and want more information about Aegon products. The service is open to customers at […]

Johnson Fleming is a finalist at UK Pensions Awards 2016

The UK Pensions Awards shine the light on excellence and recognise the advisers, providers and investment managers that offer the highest level of innovation, performance and service to occupational pension schemes and their members. This year’s awards looked at advisers and providers across 31 different categories and were rigorously judged by a panel of senior […]


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. Smoking, drinking and porn, modern day, sex, drugs and rock n roll, its always going to make money.

  2. Have you ever heard of anyone not making money from drugs and sex?

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm