Neil Woodford, Value Investing Guru

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Neil Woodford: Value and Income Ivestment Guru

Neil Woodford is one of the UK's most successful investors. He is Head of Investment for Invesco Perpetual and runs the Invesco Perpetual Income and Invesco Perpetual High Income funds and the Edinburgh Investment Trust and Invesco Perpetual UK Equity Pension Fund. He also manages the equity portfolios of the Invesco Perpetual Monthly Income Plus strategic bond fund (up to 25% of the portfolio can be invested in equities) and Invesco Perpetual Distribution Fund. The High Income Fund is currently the UK's largest investment fund.

Neil Woodford graduated in Economics and Agricultural Economics from Exeter University in 1981, and later studied finance at the London Business School. He began his investment career at the Dominion Insurance Company in 1981, and has worked in both corporate finance and fund management. He became a fund manager with Eagle Star in 1987, then joined Perpetual (now Invesco Perpetual) in 1988.

Neil Woodford's approach to investing is a Value based strategy, with the emphasis on income. He Current holds safe high yield shares, such as tobacco, telecoms and pharmaceuticals.

Disclaimer: Information in this and other linked articles is unregulated and for general information only and is not intended to be relied upon in making specific investment decisions. Appropriate independent advice should be obtained before making any such decision.

Value Investing

Great Value Investors

Most of the world's great investors used a Value approach to investing. Most blue-chip "value" shares also pay a good safe dividend yield, making this strategy ideal for an Equity Income fund or investment trust which is the area that Neil Woodford specialises in.

Warren Buffett, who is perhaps the most famous investor and certainly very successful (the world's second richest man at time of writing) is also a value investor, so this is a proven strategy that really works: Buying shares that are inexpensive when compared to the value of current and future cash-flow when compared to the values of other companies in similar and other industries.

Value and Income Investing

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The Edinburgh Investment Trust

Managed by Neil Woodford

Neil WoodfordThe current holding of Neil Woodford's Edinburgh Investment Trust are:

BP
Royal Dutch Shell
HSBC Holdings
Vodafone Group
AstraZeneca
Imperial Tobacco Group
National Grid
British American Tobacco
Anglo American
BG Group

These are high yielding blue-chip shares that should weather any market downturn well and keep paying out a reliable and increasing dividend.

Value Investing Books

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Invesco Perpetual High Income Fund

Managed by Neil Woodford

Neil WoodfordThe Invesco Perpetual High Income Fund is a unit trust yielding 3.8%

Objectives: High level of Income and Growth mainly from UK listed companies, but with some international exposure.

(Currently 85% UK Equities, 9.4% North America, 3.3% Europe, 1.8% American Emerging Markets)

Annual Management Fee: 1.5%

Top Ten Holdings of Invesco Perpetual High Income Fund (09/04/2010)

ASTRAZENECA PLC 7.90%
GLAXOSMITHKLINE 7.40%
REYNOLDS AMERICAN INC 6.10%
BRITISH AMERICAN TOBACCO 5.90%
BG GROUP 5.50%
VODAFONE GROUP 4.80%
TESCO 4.60%
NATIONAL GRID 4.30%
IMPERIAL TOBACCO GROUP 4.10%
BT GROUP 3.40%

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Invesco Perpetual Income Fund

Managed by Neil Woodford

Neil Woodford of Invesco PerpetualThe Invesco Perpetual Income Fund is a unit trust yielding 3.84%

Objectives: Reasonable level of Income and Growth mainly from UK listed companies, but with some international exposure.
(Currently 86% UK Equities, 10.2% North America, 3.1% Europe, 0.2% American Emerging Markets, 0.5% Money Market)

Annual Management Fee: 1.5%

Top Ten Holdings of the Invesco Perpetual Income Fund (09/04/2010)

ASTRAZENECA PLC 8.10%
GLAXOSMITHKLINE 7.40%
REYNOLDS AMERICAN INC 5.60%
BG GROUP 5.50%
BRITISH AMERICAN TOBACCO 5.20%
VODAFONE GROUP 5.10%
TESCO 4.50%
NATIONAL GRID 4.20%
IMPERIAL TOBACCO GROUP 4.10%
BT GROUP 3.40%

(i.e. very similar to the High Yield Fund)

Great Investors

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Invesco Perpetual Monthly Income Plus Fund

Strategic Bond Fund

Neil Woodford of Invesco PerpetualThe Invesco Perpetual Monthly Income Plus fund aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. The equity part of the portfolio is managed by Neil Woodford and is similar to the other equity income funds that he manages. The Bond portfolio is managed by Paul Causer and Paul Reed, who are both highly rated bond fund managers.

Investment and Finance Books

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All About Me

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Please Leave Some Feedback

  • JaguarJulie Oct 10, 2010 @ 6:07 am | delete
    Oh Oh! Value Investing Guru ... that sounds sexy!
  • sandyspider Apr 20, 2010 @ 9:54 am | delete
    Another informative lens.

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