Woodford: Global Slowdown Bigger Threat than Brexit

Ahead of the EU referendum Neil Woodford explains why his investment strategy won’t change, whatever the outcome 

Emma Simon 14 June, 2016 | 3:05PM
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Neil Woodford – one of the UK’s most successful fund managers – has revealed that he won’t be changing his investment strategy ahead of next week’s EU Referendum. He said his long-term investment plans will remain the same, regardless of whether the UK votes to leave or remain in the European Union.

In an update to investors in his Woodford Investment Management funds, he said that the UK faced a number of global  headwinds, many of which would exert “a more profound influence over the UK economy in the long run than will our membership of the European Union”.

He added: “I have said for some time that global growth would continue to fade and disappoint consensus (with all the associated implications for corporate profits and cash flows). This realistic caution is a reflection of the complex coalition of linked challenges policymakers face. They are daunting and include, in no particular order: excessive government and consumer debt (excessive corporate debt in China); excess capacity and deflation; rapidly ageing demographics; very weak productivity growth; and a lack of investment.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
LF Equity Income C Sterling Inc2.83 GBP0.00
Schroder UK Public Private Trust Ord34.40 GBX-1.71Rating

About Author

Emma Simon

Emma Simon  is a financial journalist, specialising in investment and consumer issues, writing for Morningstar.co.uk