View more on these topics

Woodford sells stake in Vodafone

Neil Woodford 480

Invesco Perpetual income manager Neil Woodford has sold his entire stake in Vodafone, according to the Telegraph.

Woodford, who manages more than £20bn of assets across his Income and High Income funds, has sold the stake due to reduced forecasts for revenue growth.

Woodford has gradually reduced the position in the past few months across both funds. The stock fell out of his top 10 positions in August 2012, having accounted for 4.8 per cent of both portfolios in June 2012.

Invesco Perpetual director Mitchell Fraser-Jones says: “The company has reduced its forecasts for revenue growth on the back of ongoing weakness in its core southern European markets and the cash flow cover of the dividend has fallen to what we view as uncomfortably low levels.

“The company announced a share buy-back rather than the hoped for special dividend with its dividend from Verizon Wireless, while we also have reservations about the company’s ability to maintain its margin on data revenues.”

Woodford’s funds have lagged behind their peers in the Investment Management Association UK Equity Income sector in the past 12 months but he remains one of the most successful managers in the sector over the longer term having beaten the average return over three and five years.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com