Time will prove me right: Neil Woodford says shares WILL soar after Brexit deal is done – This is Money

Time will prove me right: Neil Woodford says shares WILL soar after Brexit deal is done – This is Money

Time will prove me right, claims Neil Woodford: Beleaguered fund manager says shares WILL soar after Brexit deal is done

By Lucy White For The Daily Mail

Published: 16:51 EDT, 3 May 2019 | Updated: 17:53 EDT, 3 May 2019

Veteran fund manager Neil Woodford believes British companies are ‘profoundly undervalued’

Veteran fund manager Neil Woodford has said the stock market will boom after Brexit – even as he ditched part of his investment strategy.

British businesses are currently ‘profoundly undervalued’, he argued, and are set for an exuberant post-Brexit rally if the UK maintains a close relationship with the EU after leaving.

But in an admission that his performance had let savers down, the 59-year-old stock-picker said his flagship Woodford Equity Income Fund would no longer invest in firms which are not listed on the stock market.

Woodford said: ‘Undoubtedly, the past three years have been difficult for our clients. Ultimately, the criticism I receive is driven by performance.’

The Equity Income Fund has lost savers 7.6pc of their investment in the last three years, while the average fund in the Investment Association’s UK All Companies sector has returned 30 per cent.

Yet Woodford, who has ploughed savers’ money into UK stocks like housebuilder Barratt Developments and doorstep lender Provident Financial, is confident performance will pick up.

He said: ‘If Brexit pans out as I believe, we will see a long overdue and significant rally in sterling, and this will have a meaningful impact on the UK stock market.

‘It should liberate investors to start to acknowledge the underlying robust performance of the UK economy and the profound undervaluation of companies exposed to the UK economy.’

Official figures show a record number of people are in work in the UK, while unemployment is at its lowest since 1975.

Woodford thinks a No Deal Brexit is highly unlikely, and is banking on a ‘softer’ outcome involving a long-term relationship between the UK and EU.

He is adamant a focus on undervalued stocks such as housebuilders and banks, neglected as investors shun the UK following the 2016 referendum, will succeed.

But despite the encouraging economic signs, Woodford’s gamble on a post-Brexit boom has yet to pay off. The fund manager said in March that he needed to curb outflows or he would go ‘out of business’. A spokesperson later said this was a flippant remark.

But the move to stop investing money from his Equity Income Fund in privately owned firms is a sign he is still under pressure.

It is a dramatic U-turn for someone who banked millions of pounds of savers’ money on unquoted companies such as biotech ventures which were often smaller, younger and riskier.

Woodford shifted after investors withdrew more than £2billion from the Equity Income Fund last year, meaning it had to sell easily traded shares in listed companies to give savers their money back. 

This left the privately owned companies accounting for a larger proportion of the fund, but industry-wide rules state that only 10 per cent of a fund’s value may be invested in unquoted firms.

Woodford has begun to sell stakes in these firms to his Patient Capital Trust. In return the Woodford Equity Income will hold shares in that listed trust.

Craig Newman, the chief executive of Woodford Investment Management, said: ‘Having listened to feedback from clients we believe that moving the exposure to the asset class via a collective fund rather than individual unquoted stocks makes sense.’



  1. … [Trackback]

    […] Info to that Topic: worldnewsnetwork.co.in/time-will-prove-me-right-neil-woodford-says-shares-will-soar-after-brexit-deal-is-done-this-is-money/ […]

  2. … [Trackback]

    […] Read More on that Topic: worldnewsnetwork.co.in/time-will-prove-me-right-neil-woodford-says-shares-will-soar-after-brexit-deal-is-done-this-is-money/ […]

  3. I think this is one of the most vital information for me. And i am glad reading your article. But should remark on some general things, The site style is wonderful, the articles is really nice : D. Good job, cheers

  4. I just want to mention I am just beginner to blogging and certainly liked your blog site. Probably I’m want to bookmark your site . You absolutely come with beneficial writings. Regards for sharing your website.

  5. Hi just wanted to give you a quick heads up and let you know a few of the images aren’t loading correctly. I’m not sure why but I think its a linking issue. I’ve tried it in two different internet browsers and both show the same outcome.

  6. Hey! I just wanted to ask if you ever have any trouble with hackers? My last blog (wordpress) was hacked and I ended up losing many months of hard work due to no backup. Do you have any methods to protect against hackers?

  7. I was just searching for this information for some time. After 6 hours of continuous Googleing, at last I got it in your site. I wonder what’s the lack of Google strategy that don’t rank this type of informative sites in top of the list. Usually the top websites are full of garbage.

  8. hello!,I like your writing so so much! percentage we communicate extra approximately your post on AOL? I require an expert in this house to resolve my problem. Maybe that’s you! Taking a look ahead to look you.

  9. Good – I should definitely pronounce, impressed with your website. I had no trouble navigating through all the tabs and related information ended up being truly simple to do to access. I recently found what I hoped for before you know it in the least. Reasonably unusual. Is likely to appreciate it for those who add forums or something, web site theme . a tones way for your customer to communicate. Nice task..

  10. Hi. I wanted to thank you for the great details youve posted on your internet site. I will definitelycome back to check it out again and have subscribedto your RSS feed. Have an excellent day.

  11. You lost me, buddy. I mean, I imagine I get what youre indicating. I recognize what you’re saying, but you just appear to have ignored that you’ll find some other individuals inside the world who look at this matter for what it truly is and may perhaps not agree with you. You may well be turning away many of folks who might have been fans of your web log.

  12. Excellent things from you, man. Ive examine your things before and youre just too awesome. I love what youve received here, love what youre stating and the way you say it. You make it entertaining and you still manage to hold it intelligent. I cant wait to read more from you. This really is really a wonderful blog.

  13. Hi, Neat post. There’s a problem with your website in internet explorer, would test this… IE still is the market leader and a good portion of people will miss your wonderful writing because of this problem.

  14. With almost everything that appears to be developing within this particular subject material, many of your points of view tend to be very refreshing. Nonetheless, I am sorry, but I can not give credence to your entire idea, all be it refreshing none the less. It looks to everybody that your opinions are actually not completely justified and in actuality you are generally your self not really wholly convinced of the point. In any case I did appreciate reading it.

  15. Hello, you used to write magnificent, but the last few posts have been kinda boring… I miss your super writings. Past few posts are just a little bit out of track! come on!

  16. hello!,I like your writing very so much! proportion we keep in touch more about your article on AOL? I need an expert on this space to unravel my problem. May be that’s you! Having a look forward to look you.

  17. Thanks for discussing your ideas. Something is that learners have a solution between government student loan and also a private student loan where it really is easier to choose student loan consolidating debts than over the federal student loan.

  18. Hello! I’ve been reading your blog for a while now and finally got the courage to go ahead and give you a shout out from Houston Texas! Just wanted to tell you keep up the fantastic work!


Please enter your comment!
Please enter your name here