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Neil Woodford, Value Investing Guru

Updated on August 15, 2014

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.

Neil Woodford resigns from Invesco Perpetual and will no longer be managing the Income, High Income and Edinburgh Investment Trust from early in 2014 and he hopes to set up a new fund management house in April... Watch this space

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.

Neil Woodford
Neil Woodford

The Edinburgh Investment Trust

Managed by Neil Woodford

The 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.

Neil Woodford
Neil Woodford

Invesco Perpetual High Income Fund

Managed by Neil Woodford

The 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%

Neil Woodford of Invesco Perpetual
Neil Woodford of Invesco Perpetual

Invesco Perpetual Income Fund

Managed by Neil Woodford

The 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)

Neil Woodford of Invesco Perpetual
Neil Woodford of Invesco Perpetual

Invesco Perpetual Monthly Income Plus Fund

Strategic Bond Fund

The 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.

Money

Money
Money

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    • Andy-Po profile image
      Author

      Andy 4 years ago from London, England

      Neil Woodford said that the proposal by Ed Miliband (UK Labour Party leader) to freeze energy prices for two years after the next general election is âinsaneâ (although he would say that as a major shareholder in Centrica (i.e. British Gas) and SSE)

    • profile image

      julieannbrady 7 years ago

      Oh Oh! Value Investing Guru ... that sounds sexy!

    • SandyMertens profile image

      Sandy Mertens 7 years ago from Frozen Tundra

      Another informative lens.