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Woodford’s income funds fall to bottom of sector

Invesco Perpetual fund manager Neil Woodford has seen both his leading income vehicles slump to the bottom of their sector for the year to date.

Woodford’s £6.4bn income and £8.6bn higher-income funds are 17th and 18th respectively in the UK equity income and growth sector from January 1 to September 25, according to figures from Lipper.

The income fund has returned 5.6 per cent and the higher-income fund 4.89 per cent compared with an average return of 16.25 per cent for funds in the sector in 2009.

Standard Life’s UK equity income unconstrained product has been the top performer, returning 39.44 per cent.

Woodford’s income and higher-income funds were among 17 funds that moved across to the IMA equity income and growth sector when it officially launched in March. In July, Woodford said the UK economy is not likely to recover for another three to four years and that green shoots in the equity market are “illusory.”

Skerritt Consultants head of investment Andrew Merricks says: “You always get underperformance from Woodford when the market outperforms as he is a bigger bear than Yogi. The question of the size of his funds can be raised but you cannot knock his long-term performance.”


Fund business hits August record

Investment Management Association figures show net retail sales for funds reached £2.2bn in August, a record for the month and up dramatically on £58.7m in August 2008. Equities took £696m followed by corporate bonds with £338m and the UK absolute return sector £235m.


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