If you are an investor in Neil Woodford’s Invesco funds, you may now be looking at alternative income funds as he is due to leave next year. Tom Stevenson, investment director of Fidelity Personal gives his view on some potential alternative income funds you may wish to consider:
“Neil Woodford has dominated the equity income sector in the UK so this is a seismic announcement. One of the key attractions of Neil’s funds was his ability to protect investors’ money when equity markets fell. Investors looking to replace the Invesco Perpetual fund following his departure will look for a similar absolute return mindset.
“On the Select List the two funds most likely to appeal on this basis are the Artemis Income Fund, which has a strong cashflow focus, and Fidelity’s Moneybuilder Dividend Fund. Of these two the Fidelity fund is a tenth the size of the Artemis alternative which could make it more nimble.
“Other UK equity income funds in the Fidelity Personal Investing Select List include Henderson’s UK Equity Income Fund, which would appeal to investors looking for more mid-cap exposure. JO Hambro’s UK Equity Income Fund delivers returns that are more volatile than its peers but its managers are proven stock pickers.”