Financial Express has downgraded Neil Woodford’s Invesco Perpetual flagship Income and Higher-Income funds.
The firm’s crown ratings are a quant-based system designed to highlight funds that have produced strong performance over three years and show consistency on a risk-adjusted basis relative to their peer groups.
Rob Gleeson, an investment product consultant at Financial Express, says: “Woodford’s funds have been downgraded due to a deterioration in both their consistency and alpha scores. His focus on limiting the funds’ downside has acted as a drag on growth in the short term.”
Woodford’s £8.1 billion Income and £10.3 billion Higher-Income funds are both currently third quartile in the IMA UK Equity Income sector over three years. (article continues below)
A spokeswoman for Invesco Perpetual says: “Neil has always taken a long-term perspective and remains, as always, focused on investment fundamentals. He firmly believes that his strategy is an appropriate one and that it will produce good returns for his investors over the next five years.”
Mark Dampier, the head of research at Hargreaves Lansdown, says: “I am not surprised as he has not done well recently. Some of the big names in UK Equity Income have struggled in recent times as small- and mid-caps outperform. His view that the economy is set for anaemic and lacklustre recovery is something I do agree with.”