Woodford's value calls start to pay off

Neil Woodford's Invesco Perpetual income funds have leapt to the top of the performance tables after two years of underperformance as the manager's value calls finally start to pay off.

Despite facing heavy criticism, the head of investment stuck with defensive positions, including overweights to pharmaceuticals, tobacco and telecoms, throughout the market rally in the belief it would pay off over the longer term. Six months ago the funds were in the bottom quartile over three months, but now take the top two spots in the UK Equity Income sector over the same timeframe. Lipper data shows seven out of Woodford’s top 10 stocks in the funds have generated a return in excess of 6% in that time, with some producing as much as 11%. At the end of December, the £10.6bn Hi...