One year on since launch
Neil Woodford would say one year is not really long enough to draw any conclusions and he should be judged over decades, not a single year. With that caveat, it has still been an exceptional start for the manager and his new fund, confirming his reputation as one of the UK's finest fund managers.
Over the first year the fund has grown by 17.9%, with dividends reinvested, outperforming the IA UK Equity Income sector by 9.7% and the FTSE All Share Index by 13.5%, although it should be remembered this short term performance is not guaranteed to continue.
What has driven performance?
Our quantitative analysis suggests Neil Woodford’s performance has been driven by a combination of strong selection and sector positioning. Stock picking within large, high-yielding companies has been particularly positive, as well as within smaller, growth-orientated stocks.
While the fund is predominantly invested in larger companies, Neil Woodford has also demonstrated his commitment to long-term investing by holding some smaller businesses. These higher-risk smaller businesses, some of which are not yet quoted on the stock market, have the potential to grow into the larger, high dividend-paying companies of tomorrow, although companies at an earlier stage of their development are at greater risk of failure.
What does the future hold?
Neil Woodford’s strategy and outlook have remained consistent since the fund's launch. The portfolio reflects his long-term approach and a cautious view of the world - he sees a challenging future for the global economy as well as for stock markets, which have been inflated by asset-purchasing programmes such as quantitative easing.
In this environment, he has built and maintained a portfolio of attractively-valued companies, which he believes can deliver sustainable long-term growth regardless of difficulties within the wider economy. The fund's concentrated nature allows each holding to have a significant impact on performance, but it is a higher risk approach.
We are encouraged by the fund's progress since launch, although it remains early days. While Neil Woodford’s record on this fund is still short, his pedigree as a fund manager rests on his achievements in the last three decades, not only the last 12 months.
Although he does not currently do so, the manager has the flexibility to use derivatives should he see fit, however this is a higher-risk approach.
Hargreaves Lansdown can offer this fund with a low ongoing charge of just 0.6%, normally 0.75%. Please note our Vantage Service charge also applies.
|Annual percentage growth|
| Jun 10 -
| Jun 11 -
| Jun 12 -
| Jun 13 -
| Jun 14 -
|CF Woodford Equity Income||N/A||N/A||N/A||N/A||17.9%|
|FTSE All Share||12.1%||1.1%||20.2%||11.7%||4.4%|
|IA UK Equity Income||13.7%||0.0%||24.8%||14.8%||8.2%|
|Fund name||CF Woodford Equity Income Fund|
|Fund manager||Neil Woodford|
|Historic yield||3.4% (variable and not guaranteed)|
|Sector||IMA UK Equity Income|
Frequently asked questions
There is a tiered annual charge to hold funds in Vantage, with a maximum of just 0.45% per annum.
You can hold the CF Woodford Equity Income Fund within the Vantage Stocks & Shares ISA, Junior ISA, SIPP and Fund & Share Account.More FAQs
What are the various types of accounts available? What are the differences?
If you're unsure, please contact us for advice. The value of investments can rise and fall so you could get back less than you invest. Tax rules can change and the value of any benefits will depend on individual circumstances.
|Am I eligible?||
Yes if you are a UK private investor, company or investment club
Yes, if you are UK resident and over age 18
Yes, if you are UK resident and under age 75
|How much can I contribute?||
Up to £15,000 (see rules)
Up to as much as you earn, effectively capped at £40,000 (see rules)
|When can I take money out?||
Usually from age 55
|Can I save tax?||
|How much does it cost?|
Can I invest monthly into this fund?
Yes, you can set up a Direct Debit to invest on a monthly basis subject to a minimum of £25 per month. It is possible to set up the instruction online, over the telephone, or by sending us an application form.
Payment will leave your bank account on the 7th of each month (or the next working day if the 7th is not a working day) and the investment will be made between the 11th and 21st of the month.
Is this fund available with income and accumulation units?
Yes, the fund offers both types of unit and both are available for investment at launch.
The type of unit you purchase determines how any income generated from the fund's underlying investments is treated. With income units, income is paid out to fund holders as cash. This could provide the investor with an income stream or the cash could be reinvested to buy additional units.
With accumulation units income is retained within the fund and reinvested, increasing the price of the units. Generally, for investors who wish to reinvest income, accumulation units offer a more convenient and cost-effective way of doing so.
What is the minimum investment?
The minimum investment into the fund is £100 for lump sums. The minimum investment for regular savings plans is £25 per month.
Which accounts can I invest in?
You can hold the CF Woodford Equity Income Fund within the Vantage Stocks & Shares ISA, Junior ISA, SIPP and Fund & Share Account.
What is the yield of the fund?
The yield is 3.4% although remember yields are variable and not guaranteed.
What are the charges to hold this fund in the Hargreaves Lansdown Vantage Service?
There is a tiered annual charge to hold funds in Vantage, with a maximum of just 0.45% per annum. See our Terms & Conditions for details.
Can I invest in the fund on behalf on my children or grandchildren?
Yes, you can either invest in a Junior ISA (if your child is eligible) or in a Fund & Share Account designated to your child. Please note you can only set up a designated Fund & Share Account with a paper application, you cannot apply by telephone or online.