Neil Woodford (born 1960) is head of investment for Invesco Perpetual in the UK[1] and has been described as "one of the best known and best performing fund managers in the UK market today".[2]
After graduating in Economics and Agricultural Economics from University of Exeter in 1981, Woodford began his career with the Dominion Insurance Company. In 1987 he became a fund manager with Eagle Star, then moved to Invesco Perpetual in 1988. He has also pursued postgraduate studies in Finance at the London Business School.[1]
Woodford runs the Invesco Perpetual Income, and Invesco Perpetual High Income funds, with respectively £4.17 billion[3] and £6.69 billion in assets.[4] The High Income Fund is Britain's largest investment fund, and accordingly has considerable influence over the sectors he invests in - describing negotiations with government over water pricing, he said: "We had a meeting with a minister only last week. If we can't get an attractive, risk-adjusted return, then they won't get the infrastructure investment they want. We're not a charity."[5]
Woodford has a reputation as a fund manager who can provide stability and reliability even in turbulent market conditions.[6] The High Income fund has grown in value by 292.5% (14.7% annualised) over the past 10 years, while the Income fund has grown 301.7% (14.9% annualised) over the past 10 years. Both funds adopt a High Yield approach to investing, as they are in the Equity Income sector, focusing on companies that pay a high dividend yield. Current holdings are focused on the tobacco, telecoms, and utilities sectors, which all have a high dividend yield relative to the share price, as a result of perceived risks (respectively legal action from smokers/health bans, charging pressures and regulator action) restricting share price rises.