A high income in a low income world
Neil Woodford is one of the most successful, experienced and well-known fund managers in the UK. He began his investment career in 1981, and has a history of getting the big calls right, giving him an edge over other managers. His track record is nothing short of outstanding, and our analysis shows his success is down to his excellent stock picking ability and shrewd sector allocation.
Why choose CF Woodford Income Focus for this year’s ISA or pension?
Managed by one of the finest fund managers in the UK.
Focused on generating a high income for investors, with the potential for income and capital to grow over the long term.
Exclusive deal for HL clients - ongoing charge of just 0.6% p.a. The charge to hold funds in Vantage of up to 0.45% p.a. also applies.
A focus on income
While Neil Woodford has historically focused on generating both income and capital growth, his new CF Woodford Income Focus Fund has a primary aim of generating a high income and growing that income over time.
The manager will seek to provide income of 5p per share per annum once the fund is fully up and running. However, with new funds it can take time for income to build so investors will need to be patient while the income record is established. Remember there are no guarantees any specific level of dividend will be achieved.
Neil has a good track record of generating a high and rising income. Naturally he won’t get it right every time, however, and like any manager he will experience periods where his style is out of favour and his fund underperforms.
What can investors expect from this new fund?
To deliver a high income Neil Woodford will invest in a portfolio of around 50 larger, predominantly UK-based companies. This is relatively concentrated and allows each investment to contribute significantly to performance, but it is higher risk. He also has the flexibility to invest in companies of all sizes, including higher risk smaller companies. Like all stock market investments it will fall as well as rise in value, investors could make a loss. The fund’s charges will be taken from capital which increases the yield but reduces the potential for capital growth.
The companies he targets will be financially strong with the ability to pay, and importantly to sustain, high dividends. He tends to invest when they are out-of-favour and other investors are interested in companies perceived to be more exciting. In recent years he has found plenty of opportunities in healthcare and tobacco companies, while he has tended to avoid the oil, banking and mining sectors. We anticipate similar biases in the new fund.
We consider Neil Woodford to be one of the finest fund managers of his generation. We had no hesitation adding this fund to the Wealth 150+ list of our favourite funds, and believe it merits serious consideration for those who need income from their investments.
Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. This information is not personal advice,
if you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.