How Woodford responded to China equity rout

Manager expected correction for 'more than a year'

Star equity manager Neil Woodford has told investors he had expected the rout in China for over a year, and has been preparing his portfolios for this eventuality.

Commenting on the recent dramatic market sell-off triggered by escalating worries about the slowdown in China, the veteran manager (pictured) said his investment strategy has been focused on expectations of weak economic growth from the region. "We have spoken about the equity market correction in China, which started in earnest in June and have been commenting on the weak China growth story for more than a year," Woodford writes. "I say this now to remind investors that these events, which triggered [the] global equity panic, have been embedded in the expectations that we have in pla...