Correlation game: Who is least similar to Woodford?

Neil Woodford's new fund is a focal point of investor interest at the moment, but those looking to diversify their UK equity income exposure have a number of alternatives.

The former Invesco Perpetual manager’s reputation as a defensive option with a hefty weighting to mega caps (albeit with a long tail of positions in unquoted companies), means many UK income peers have a similar return profile. However, a number stand out at the opposite end of the scale. Using data provided by FE, Investment Week has examined the funds that have exhibited the lowest correlation with the manager’s Invesco Income fund over his last three years at Invesco Perpetual. Not surprisingly, the least-correlated funds are those with a smaller companies slant, including Unicorn ...