You are here: Home - Investing - Experienced Investor - News -

Star fund manager Neil Woodford trims holding in tobacco giant

0
Written by: Adam Lewis
16/06/2017
Neil Woodford has reduced his position in the tobacco giant British American Tobacco (BAT) within his Equity Income fund, after its share price hit an all time high in May.

In the fund’s latest update, it was revealed that in May the manager added positions in three UK house builders – Barratt Developments, British Land, Taylor Wimpey – and Lloyds Bank, based on his view that the UK economy is well situated for a prolonged period of benign growth and low inflation.

“These additions were funded by reducing the portfolio’s position in British American Tobacco which now looks as fully valued as it has ever done in modern market history,” said Mitchell Fraser-Jones, head of investment communications at Woodford Investment Management.

“In some respects, we are reluctant to reduce our exposure to such a high quality, dependable growth business, but its valuation makes it an obvious candidate to reduce in the ongoing fight for capital.”

The fund also trimmed its position in G4S following strong share price performance in recent months, while it initiated a new holding in the property and construction business Countrywide Properties.

“We remain cautious on the outlook for the global economy despite the market’s lingering optimism on growth,” said Fraser-Jones. “Meanwhile, we continue to warm to the prospects for the domestic economy, in contrast to an increasingly bearish consensus.

“The UK election result doesn’t change the fundamentally positive backdrop for the UK economy, in our view. Indeed, with its implications for looser fiscal policy and a softer Brexit, the UK economic outlook appears to have improved still further and the portfolio is positioned to benefit from this outcome over the long term.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Robot
Are machines set to take over from your fund manager?

Man versus machine has long been the stuff of dreams for science fiction authors but with the onset of robo-advice...

Close