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

Star fund manager Neil Woodford trims holding in tobacco giant

Written by: Adam Lewis
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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

Money Tips of the Week

Read previous post:
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...