Vodafone Hits Ethical, Equity-Income Funds
See which funds have the most exposure to Vodafone.
Investors were clearly not appeased by the latter, however. Indeed, Morningstar's own Vodafone analyst noted that pressure on revenues from a slowing Spanish economy was greater than expected, and that the company might not be as defensive as previously assumed. The shares ended Tuesday down 20.25p or 13.57%. The impact is likely to be heavily felt among ethical funds and equity income funds in the UK, many of which favour Vodafone. The funds that have disclosed portfolios as of 31 March or more recently, and had the largest weights in Vodafone at the time are listed in the table below (note that the funds may have changed their Vodafone stakes prior to today's announcement).
A large stake in Vodafone doesn't necessarily mean something is amiss with a fund's strategy. Indeed, we'd be concerned if managers focussed too much on near-term news, and Vodafone could easily bounce back relatively quickly. However, it shows why investors need to think about their exposures carefully as they build their portfolios. If for example, you were to pair an ethical fund with one of the diversified offerings below for your UK equity allocation, you might have far more exposure to a handful of companies such as Vodafone than you would expect. To guard against this, you can use our Instant X-Ray tool to check for stock overlap.
Fund | Morningstar Category |
% Assets in Vodafone |
Portfolio Date |
---|---|---|---|
L&G Ethical | UK Large-Cap Blend Equity | 9.89 | 30/06/08 |
Prudential Ethical | UK Large-Cap Value Equity | 9.66 | 30/06/08 |
Scottish Widows Ethical | UK Large-Cap Blend Equity | 9.01 | 30/06/08 |
Old Mutual Ethical | UK Large-Cap Value Equity | 8.46 | 30/06/08 |
Scottish Widows Environmental | UK Large-Cap Blend Equity | 8.16 | 30/06/08 |
Norwich UK Ethical | UK Mid-Cap Equity | 7.84 | 31/05/08 |
Norwich Sust. Future UK Gr. | UK Mid-Cap Equity | 6.81 | 31/05/08 |
F&C UK Ethical | UK Large-Cap Blend Equity | 6.78 | 31/05/08 |
Aegon Ethical Equity | UK Mid-Cap Equity | 6.65 | 30/06/08 |
Fund | Morningstar Category |
% Assets in Vodafone |
Portfolio Date |
---|---|---|---|
Baring Equity Income | UK Large-Cap Value Equity | 8.95 | 31/05/08 |
Prudential Newton Hi-Inc | UK Large-Cap Value Equity | 8.89 | 30/06/08 |
BlackRock UK Income | UK Large-Cap Value Equity | 8.86 | 31/03/08 |
Newton Growth | UK Large-Cap Growth Equity | 8.82 | 31/03/08 |
Newton Higher Income | UK Large-Cap Value Equity | 8.48 | 31/03/08 |
Jupiter UK Special Sits | UK Large-Cap Blend Equity | 8.33 | 31/03/08 |
Premier Castlefield Monthly Eq | UK Mid-Cap Equity | 8.03 | 30/06/08 |
Insight Inv. Equity High Income | UK Large-Cap Value Equity | 7.97 | 30/06/08 |
Newton Income | UK Large-Cap Blend Equity | 7.61 | 31/03/08 |
ResolutionAsset Higher Yield | UK Large-Cap Value Equity | 7.41 | 30/06/08 |
SG UK Growth | UK Large-Cap Value Equity | 7.27 | 30/06/08 |
Lincoln Growth Trust | UK Large-Cap Blend Equity | 7.25 | 30/04/08 |
Lazard UK Alpha | UK Large-Cap Blend Equity | 6.99 | 31/03/08 |
Cazenove UK Equity Income | UK Large-Cap Blend Equity | 6.91 | 31/05/08 |
Majedie Asset UK Equity | UK Large-Cap Blend Equity | 6.79 | 30/06/08 |
ResolutionAsset UK Focus | UK Large-Cap Blend Equity | 6.79 | 30/04/08 |
Cazenove UK Opportunities | UK Large-Cap Blend Equity | 6.76 | 30/06/08 |
Lazard UK Income | UK Large-Cap Value Equity | 6.74 | 31/03/08 |
F&C UK Equity Income | UK Large-Cap Value Equity | 6.70 | 31/05/08 |
Threadneedle UK Gr&Inc | UK Large-Cap Blend Equity | 6.69 | 31/05/08 |
M&G Dividend | UK Large-Cap Value Equity | 6.64 | 30/04/08 |
Norwich UK Equity Income | UK Large-Cap Value Equity | 6.63 | 30/06/08 |