Bestinvest says
The manager's investment style combines a macro economic overlay with a detailed understanding of the industrial landscape and in depth stock specific analysis. This approach can lead to heavy skews in the portfolio by sector. Woodford's style could be described as risk averse and valuation orientated. Size of AUM mean that flexibility to operate in the mid and small cap universe is restricted. The portfolio has a very high degree of commonality with its sister fund, the INVESCO Perpetual High Income Fund.
It invests primarily in companies listed in the UK (historically circa +80%), with the balance invested internationally although to achieve its objective the fund may include other investments and make use of permitted financial transactions that are considered appropriate. The manager initially shapes his portfolio through a top down view which is combined with fundamental analysis at the stock level focusing on balance sheets and cash flows. Although there is no rigid yield criteria, preference is for companies on reasonable yields with strong fundamentals. The total return philosophy, however, has meant that the income yield has generally been towards the lower end of his peer group sector.