CONTENTS July/August 2019 PAGE 34 J EDITOR’S LETTER ust when you thought there was nothing more to say on Neil Woodford, something else happens. From the fund’s suspension through to FCA intervention and the roles played by Link Asset Solutions and Hargreaves Lansdown, it’s a story that keeps on giving. The word ‘hubris’ has been bandied around as people claim the writing had been on the wall for a long time. Hindsight is a wonderful thing but, to blow our own trumpet, Portfolio Adviser fl agged liquidity concerns in Woodford’s portfo-lio back in our October 2017 issue. In ‘Playing for high stakes’, Kristen McGachey drew attention to the perceived lack of liquidity in both Woodford’s and Invesco’s Mark Barnett’s portfolios by highlighting the large stakes they took in holdings such as Provident Financial. Fast forward to today and Woodford’s fund has been suspended for more than a month and Link has announced the freeze will remain for a further 28 days. Savers are trapped in the fund while still paying management fees, thought to be netting Woodford’s fi rm £100,000 a day. In this issue we look at how Woodford got into this mess. On p40, Jessica Tasman-Jones tracks the style drift in the former star manager’s port-folio as market cap exposure glided further into unlisted territory. On p20, Sonia Rach assesses the di erence between advice and guidance and the role of fund lists in funnelling savers into these products. We also ask fi ve wealth manag-ers if the Woodford debacle has changed their approach to liquidity (p44). Elsewhere, we speak with JP Morgan’s Clare Hart, manager of the largest US equity fund run by a woman (p34). We also get the lowdown on the Canada Life multi-asset portfolios from head of multi-asset Craig Rippe (p48). This month’s fund trends puts global bonds in the spotlight while fund selector tackles absolute return. As ever, we hope you fi nd this issue informa-tive and welcome your feedback. 01 06 08 10 12 14 15 16 18 19 Billion dollar woman: JP Morgan’s Clare Hart is one of a small club proving there is room at the top for female fund managers NEWS ROUND UP PAGE 06 H2O Allegro in hot water after losing rating ‘Illiquidity fund’ proposal met with scepticism Woodford fund remains in the dog house A letter from US: Growth in automation promises to keep the US tech boom rolling On the money: Breaking down the stigma around mental health in the workplace Counterpoint: EM share of global trade edges ever closer to that of developed markets Sector report: The perils of illiquid equity should be clear Companies & markets: Most indexes are on the rise but the S&P 500 has outpaced them all Economic summary: No-deal Brexit to hit Europe hard; and US and Japan talk over trade deal 02 20 28 34 38 40 PROFILES & ANALYSIS PAGE 20 Viewpoint: Were investors properly informed of the risks before putting money into Neil Woodford’s equity fund? Contrarian: The view that quality shares are cheap at any price is raising concerns Fund manager profi le: Clare Hart heads up the largest US fund run by a woman TMPI: Markets are up on 2018 but warning signs linger Investment strategies: Was it style drift that got the Woodford fund in trouble? Wealth manager profi le: Tackling the thorny issue of liquidity post Woodford Asset allocator: Late-cycle equity reduction could mean missing out on returns 44 48 BURNING AMBITION THE COST OF QUALITY How much is too much? Pages 28-31 Sebastian Cheek , editor sebastian.cheek@lastwordmedia.com ww.portfolio-adviser.com ROOM AT THE TOP JP Morgan’s Clare Hart on running more than $31bn Pages 34-37 END GAME Canada Life’s multi-asset head is wary of reacting to late-cycle conditions Pages 48-49 Did Neil Woodford fly too close to the sun? On the cover: The saga of Neil Woodford’s Equity Income Fund has the whole industry talking. This month, viewpoint, investment strategies and wealth manager profi le all cover di erent aspects of the story ‘ IS QUALITY REALLY CHEAP AT ANY PRICE?’ Graham Campbell, chief executive, Saracen Fund Managers July/August 2019 | www.portfolio-adviser.com | Available on the App Store 001_PA_0719.indd 1 03/07/2019 10:34 PAGE 28 July/August 2019 Portfolio Adviser 3
Portfolio Adviser PA July 2019: Page 3
