Star fund manager Neil Woodford's departure from Invesco Perpetual has hit his funds hard. His Income and High Income funds saw outflows of £1.4bn in the month to 11 December alone.
This "mega-sized" £1.1bn investment trusthas also suffered over the uncertainty of who will fill Woodford's shoes, says Kate Morley in the Investors Chronicle.
The good news is that the trust which has, unusually for an investment trust, tended to trade at a premium to net asset value (ie, for more than its underlying portfolio is worth) is now trading at a small discount.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Moreover, the incoming manager of the Edinburgh Investment Trust (LSE: EDIN)has a track record to match Woodford's.
With his Perpetual Income and Growth Investment Trust, Mark Barnett delivered a 130.7% return in the five years to 31 December 2013 not far off Woodford's 135.8% return over the same period with Edinburgh.
The trust invests mainly in UK shares, which account for 83% of its holdings. It aims to beat the performance of the FTSE All-Share index. Just over a third of the portfolio is in healthcare, 22.8% in consumer goods and 19.6% in industrials. Barnett hasn't revealed his strategy in detail, but he believes that equities may well generate lower returns in 2014 than in past years.
Adrian Lowcock of Hargreaves Lansdown thinks he will trim the number of holdings in the trust, and hold fewer large stock positions than Woodford. With an ongoing charge of 0.71%, the trust should suit investors looking to boost their exposure to UK stocks.
| AstraZeneca | 9.3% |
| GlaxoSmithKline | 8.8% |
| BT Group | 7.8% |
| British American Tobacco | 6.2% |
| Roche Holdings | 5.8% |
| Imperial Tobacco | 5.2% |
| BAE Systems | 5.2% |
| Reckitt Benckiser | 4.6% |
| Capita | 4.3% |
| Reynolds American | 4.3% |
-
Adidas, Nike or Jordans - could collectable trainers make you rich?The right pair of trainers can fetch six figures. Here's how you can start collecting vintage Adidas, Nike or Jordans now
-
Early bird ISA investors flock to global funds, India and the USThere’s been an increase in investors maxing out their ISA at the start of the new tax year. But where are they putting their cash and why does it make sense to be an early bird investor?
