9th March 2015
Renowned UK fund manager Neil Woodford has urged that the eurozone is not workable in its current state
Woodford who established his own business Woodford Investment Management last year after leaving his long-term employer Invesco Perpetual told the BBC’s Hardtalk programme that the currency bloc was “fundamentally flawed” and he expected the “stresses and strains” in the region to worsen.
He said: “In a very simple sense pretending that Greece was Germany is a fundamental error.”
The fund management veteran added that the uncertainty over the UK’s European Union membership could hit the British economy.
The Conservative Party has already pledged to hold a referendum on the UK’s membership of the EU if it wins May’s general election.
Woodford said: “The likelihood of a referendum, I think, will put a brake on external investment, international investment in the UK… it will create uncertainty.”
The EU is launching a massive quantitative easing programme worth more than €1 trillion in a bid to stimulate growth across the embattled region.
The fund management veteran who now runs the Woodford Equity Income fund has attracted a massive £4.7bn since the portfolios launch last year.
Woodford who managed among others, the Invesco Perpetual High Income fund, managed to turn an initial £10,000 investment into £230,000 over some 25 years.