Neil Woodford, Invesco Perpetual's star income fund manager, warns George Osborne's UK growth forecasts are too optimistic and expects growth to remain lower for longer.
Woodford, who runs the £10.3bn Invesco Perpetual High Income and £8bn Income funds, says the economy is likely to struggle for longer than anticipated because of the government's austerity measures. As a result, he questioned the recent growth forecast for 2011 of 1.7%. He says: "The economy background is very challenging at the moment and is likely to remain so for some time. "Therefore I don't see growth coming through as the Chancellor has forecast." He says valuation expectations look overextended for some stocks, and as such he has only 25% of revenues of his portfolios coming...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes