Invesco Perpetual’s Neil Woodford has been handed a CBE in the latest Queen’s Birthday Honours List.
Woodford, the head of UK investment at the asset manager, has been awarded the title of Commander of the Order of the British Empire for “services to the economy”.
The manager, who runs the £13.7bn Invesco Perpetual High Income fund and the £10.3bn Invesco Perpetual Incomefund, is one of the most keenly watched in the UK asset management industry and is widely regarded as being a sensible, long-term investor.
Appearing earlier this year before the business, innovation and skills select committee on the Kay Review into short-termism, Woodford called on fund manager to have a much greater involvement in the companies in which they invest.
The manager has an average holding period of 16 years and believes fund managers should think more like business owners, rather than looking to sell their investments when problems arise.
“We think it is our responsibility to give our advice and halfpenny worth on how they should allocate capital. The problem I see today is that most fund managers don’t think like owners,” he told the committee.
“If something goes wrong at a business, something happens that they didn’t anticipate or the share price falls then they emphasise sale over voice. You have to have a long-term involvement to have a voice over sale so I think it is the complete reverse and there is not enough engagement.”
According to FE Analytics, Woodford has made a return of 243.7 per cent between the start of 2000 and 1 June 2013 – more than double the 102.5 per cent made by the peer group composite.
The manager’s Invesco Perpetual High Income fund has gained 50.2 per cent of three years to 14 June 2013, placing it first quartile against the IMA UK Equity Income sector’s 41.6 per cent rise. It is also first quartile over five years, rising by 50.7 per cent against the peer group’s 38.6 per cent.