Woodford: ‘Brexit’s a sideshow, UK is set fair’

Optimism about the economy has caused the star fund manager to buy more Britishfocused businesses, he tells Richard Evans

rexit is far from the most important influence on the UK economy.” Neil Woodford, Britain’s most prominent professional investor, who is celebrating three years in charge of his Woodford Equity Income fund, has poured scorn on the economics profession for predicting instant disaster in the wake of the vote to leave the EU and sounded an upbeat note about the country’s future as exit negotiations begin.

In an exclusive interview with Telegraph Money this week he explained why his optimism about the British economy had led him to tilt his portfolio towards businesses that are tied to it, such as banks, house builders and property firms.

“Ninety per cent of economists said we would have an instant recession if Britain voted to leave the EU. They were talking nonsense,” he said. “Other, more profound factors determine our economic future. I’m not underestimating the impact of Brexit but I think I have a more balanced perspective.

“For example, there are record numbers of people in work. If businesses think the world is about to end, why are they advertising record numbers of job vacancies? Why are foreigners still investing here? Why are banks now finally lending normally for the first time since the financial crisis – this is a more significant development than

‘Economists predicted an instant recession. They were talking nonsense’