Neil Woodford recently said "Choosing my words carefully, I think the industry has overcharged in many aspects. I mean, it is quite clear in the banking industry – and indeed in my own industry – that too often the industry has been guilty of charging active fees for index performance or worse".
He also said “Fund managers are constrained by the fear that if they were to under perform the index for a three, six or 12-month period, their careers would be in jeopardy.” However, this just raises the point that Fund Managers are habitually lazy in their approach towards their client accounts and have no intention of putting themselves out to provide future innovation in the fund market.
Neil Woodford graduated from Exeter University with a degree in Economics in 1981 and started working in the City at Dominion Insurance later that year. He joined Reed Pension Fund as a trainee equity analyst in 1983 and, after a spell in a corporate finance role for TSB, started managing money at Eagle Star in 1987. The following year, Neil joined the UK equities team at Perpetual in Henley-on-Thames, where he spent the next 26 years of his career crafting his distinctive investment approach and developing a reputation as one of the most highly respected and trusted fund managers in the industry. Neil Woodford was awarded the CBE in 2013 for services to the economy.
Neil Woodford, who launched his own business this year after leaving one of the largest fund managers in Britain, Invesco Perpetual, where he worked for more than 25 years, said some fund fees were too high when consumers could instead buy a tracker fund for a much lower cost.