Woodford and Evenlode funds profit from ‘easy money’ post-Brexit

Stockmarket-Performance-Business-700x450Woodford Equity Income and Evenlode have emerged as the top UK equity funds since the EU referendum, FundCalibre finds.

But it warns a post-Brexit bounce has resulted in “easy money”.

The Woodford Equity Income fund has returned 12.1 per cent in the three months after the vote, while the Evenlode Income returned 11.9 per cent.

Meanwhile, the FTSE All Share returned 8.1 per cent over the same period.

In the smaller companies space, the Liontrust UK Smaller Companies fund, which returned 10.3 per cent, performed best followed by the Malborough UK Micro Cap Growth fund returning 9.1 per cent.

FundCalibre managing director Darius McDermott says “easy money has been made” out of the Brexit market bounce despite warning on how the negotiations with the EU might unravel.

McDermott says: “The UK stock market has been remarkably resilient in the past few months, bolstered also by actions from the Bank of England to add support to the economy.

“Many of the fund managers I speak to are starting to suggest the ‘easy money has been made’ out of the Brexit bounce and there is caution as the downside risks are yet to come through when we actually start the process of exiting the European Union.

“For this reason, I would particularly suggest that now is not the time to buy a market tracker. The recent surge is making the indices look expensive and you risk buying right as we are on the cusp of renewed volatility. Instead, I’d recommend a few carefully chosen active funds, whose managers will be looking to exploit this volatility, rather than simply being taken for the ride.”