LF Woodford Equity Income Class Z - Accumulation (GBP)
Our view on this Fund
This fund features on our Wealth 50 list of what we believe are the best funds in each sector.
Neil Woodford is one of the most successful, experienced and well-known fund managers in the UK. Over the course of his career he's significantly outperformed the UK stock market although recent performance has been disappointing. He often invests very differently to the wider market though and this inevitably leads to periods of underperformance.
After setting up his own fund management business in May 2014, we think he's well incentivised to perform over the longer-term. 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 will 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.