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LF Woodford Equity Income Class Z - Accumulation (GBP)

Sell:84.63p Buy:84.63p Change: 1.22p (1.46%)
Prices as at 16 October 2019
Change: 1.22p (1.46%)
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
Prices as at 16 October 2019
Change: 1.22p (1.46%)
Prices as at 16 October 2019
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.
Woodford Equity Income - dealing suspended

What does it mean for investors?

Find out more

The "top ten holdings" are going to be removed from Woodford Equity Income's page on our website between 5 October and 6 October 2019, as the information is no longer up to date. We will update the "top ten holdings" as soon as the data becomes available.

Our view on this Fund

This fund does not feature on our Wealth 50 list of what we believe are the best funds in each sector. If a fund is not within our Wealth 50 this is not necessarily a recommendation to sell. However, if you are thinking of adding to your investments we believe Wealth 50 funds are superior alternatives. View funds on the Wealth 50 »

In this fund Neil Woodford blends investments in larger, high-yielding companies with smaller, more innovative businesses. The smaller businesses provide long-term growth potential but are higher-risk than their larger counterparts.

The fund doesn't have a strict income target. Neil Woodford tries to generate a good total return, combining both rising income and capital growth. This means he'll sacrifice some income upfront for the prospect of better growth in the capital and income over the long term. Of course there are no guarantees and we see this as a higher-risk UK fund.

Dealing in this fund is currently suspended, so investors cannot buy or sell units in the fund. Dealing was suspended on 3 June 2019 by Link Fund Solutions, the fund's Authorised Corporate Director, to protect existing investors following concerns about redemptions. The fund was removed from our Wealth 50 list following this announcement.

The fund has fallen in size over the last year, due to poor performance and investor outflows. This jeopardises manager Neil Woodford's ability to run the fund effectively. Link has taken action in order to protect investors who wish to remain in the fund, who could otherwise be negatively affected by fund redemptions. We will keep investors up to date with any developments.

Our view on the sector

The UK stock market is home to lots of world-class companies. From international giants to a diverse array of smaller businesses. This provides a rich hunting ground for fund managers in this sector. They all try to grow investors' money over the long term, but each goes about it in a different way. Some focus on larger companies in the FTSE 100 index, others invest in medium-sized or smaller companies, and some have the flexibility to invest in any company, regardless of size. Some aim to match or deliver a return similar to the broader UK stock market. Others have the freedom to try and make as much money as possible for investors and take more risks. That could mean investing in only a small number of companies, for instance. A fund that invests in UK shares is normally the first port of call for UK-based investors. But with such a variety on offer, investors should make sure a fund is right for their circumstances before investing.

Performance Analysis

Over his fund management career, Neil Woodford has outperformed the broader UK stock market. Our analysis of his performance shows a key strength is his interpretation of stock market trends and subsequent positioning of his portfolio. However, in recent years the fund's performance has been some way behind the broader UK stock market.

He often invests against the herd, so the fund can look quite different to the wider market and its peers. There will be times when his views are out of kilter with the rest of the market and his funds will go through periods of weaker performance. Recently he's had a more positive outlook for UK companies that make most of their money domestically, rather than overseas. A lot of people haven't shared the same view, and this has held back performance.

Investment Philosophy

Neil Woodford invests in companies that have been overlooked by other investors while taking into account his views on the broader UK economy. If he spots an opportunity, he'll invest whatever sector the company's in and whether it's large or small.

Process and Portfolio Construction

Neil Woodford searches for companies whose share prices don't properly reflect their future prospects. He also likes companies with predictable earnings and high cash flow. This is combined with his wider economic views.

In recent years Neil Woodford has become increasingly positive on the prospects for some of the smaller companies he owns. This part of the portfolio has grown and could make the fund more volatile. It could also reduce the potential for higher dividends because some of the smaller companies don't pay dividends yet.

As a result this is unlikely to be the highest-yielding fund in the sector and is unlikely to appeal to a portfolio invested for high income today. The fund takes its charges from capital, increasing income return but reducing the potential for capital growth.

question mark Manager Track Record Based on HL Quantitative Research

  • Invesco High Income (UK) Inc
  • Invesco High Income (UK) Acc
  • LF Woodford Equity Income C...
  • FTSE All-Share TR
  • FTSE All-Share TR

Fund Track Record

15/10/14 to 15/10/15 15/10/15 to 15/10/16 15/10/16 to 15/10/17 15/10/17 to 15/10/18 15/10/18 to 15/10/19
Annual return 18.52% 10.08% 0.48% -11.57% -27.67%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Woodford Investment Management was founded in 2014 when high-profile investor Neil Woodford left Invesco to set up his own fund management business. The manager and his team look for companies that have been overlooked by other investors, and whose shares can be bought at a price they view as below their true worth.

Information about the fund

Fund manager biography

manager photo
Manager Name: Neil Woodford
Manager start date: 2 June 2014
Manager located in: Oxford

Neil Woodford has more than thirty years' experience in the UK fund management industry, over which time he has delivered outstanding long-term performance to his investors. Neil was appointed a Commander of the Order of the British Empire (CBE) in 2013 for services to the economy and, in the same year, announced his intention to set up his own fund management business. Woodford Investment Management was established in 2014 and Neil is the fund manager of the LF Woodford Equity Income and Income Focus Funds and the Woodford Patient Capital Trust.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account