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New: CF Woodford Income Focus Fund

Invest by 5 April to make the most of this year's tax allowances and receive the £1 launch price. Fund launches 11 April.

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Important - The value of investments can fall as well as rise, so you could get back less than you invest, especially over the short term. Income will vary and is not guaranteed. The information shown is not personal advice, if you are unsure of the suitability of an investment for your circumstances please contact us for personal advice.

What is CF Woodford Income Focus?

The new CF Woodford Income Focus Fund provides a way for investors to tap into the income provided by the stock market. It is managed by Neil Woodford, one of the most successful, experienced and well-known fund managers in the UK.

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High income

Seeking a high income for investors, with the potential for income and capital to grow over the long term.

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Exclusive low charge

Exclusive low ongoing charge for HL clients - not available through any other broker.

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Strong track record

Managed by one of the finest fund managers in the UK, with an outstanding track record spanning more than 35 years.

Neil Woodford introduces his new fund, CF Woodford Income Focus Fund
Neil Woodford introduces his new fund, CF Woodford Income Focus

Don’t miss out - tax year ends 5 April

Invest by 5 April 2017 to make the most of this year’s ISA and SIPP allowances and receive the £1 fixed launch price. Fund launches 11 April.

Invest now

Seeking high income in a low income world

Overview

Neil Woodford’s new CF Woodford Income Focus Fund has a primary aim of generating a high income that will grow over time. It also has the potential to provide some capital growth.

The manager will seek to provide income of 5p per share per annum once the fund is fully up and running (the launch price is £1 per share). 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.

What can you expect from the fund?

To deliver a high income Neil Woodford will invest in a range of larger, predominantly UK-based, high-yielding companies; some of these will be companies he has invested in for many years. The portfolio will be relatively concentrated, consisting of approximately 50 companies, allowing each investment to contribute significantly to performance, though this approach increases risk. He also has the flexibility to invest in companies of all sizes, including higher risk smaller companies.

The companies he targets will all be in a strong financial position 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.

We expect the Income Focus fund to generate the bulk of its return from dividend payments and the potential for its income to rise over the long term.

The fund’s charges will be taken from capital which increases the yield but reduces the potential for capital growth.

Neil Woodford is aiming to deliver 5p of income per share per annum

NEW FUND LAUNCH

£1 fixed launch price - invest by 11 April 2017

Invest now


An exceptional record of investing

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, although this is a new fund and it will perform differently to his earlier ventures. Past performance is not a guide to the future.

He has a good record of generating a high and rising income for investors. 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. Like all investments the value will fall as well as rise, so investors could get back less than they invest.

Neil Woodford's career track record

Past performance is not a guide to the future. Source: Lipper IM, 01/10/88 - 01/01/17. Figures with income reinvested.

Cumulative income generated from £10,000 invested in 1988

Past performance is not a guide to the future. Source: Lipper IM, calendar years 1988 - 2016


NEW FUND LAUNCH

£1 fixed launch price - invest by 11 April 2017

Invest now


Low fixed annual fund charges

  • 0%

    Net initial charge

  • 0.6%

    Fixed ongoing fund charge (OCF/TER)

  • 0.45%

    Maximum HL Vantage charge

  • 1.05%

    Maximum overall charge

The standard annual charge for this fund is 0.75%. Our clients will invest in a unit class with a 0.65% annual management charge, and in addition receive an annual loyalty bonus of 0.05%, bringing the overall annual cost down to just 0.6%. Please note loyalty bonuses are subject to tax in the Vantage Fund & Share Account. The Vantage charge is our platform charge which won't be over 0.45%. Both of these charges will be payable if you want to hold the fund with HL, amounting to a maximum of just 1.05% in total. See our charges


Frequently Asked Questions


  • We must receive your instructions by midnight on 11 April.


  • The launch price is £1 per share.


  • The existing CF Woodford Equity Income Fund aims for a combination of income and capital growth. To boost the growth potential part of the portfolio is invested in early-stage companies which pay little (or nothing) in the way of dividends. With this new fund the focus is squarely on income – it is therefore likely to have a higher yield, but offer less growth potential than the existing fund. There will be some overlap between the two portfolios.


  • The minimum investment into the fund is £100 for lump sums. The minimum investment for regular savings is £25 per month. The first regular investment would be in May, after the fund has launched. Please note that as this is after the launch of the fund, investments will receive the prevailing price at the time rather than the launch price of £1.


  • You can apply for the CF Woodford Income Focus Fund at launch in the Vantage ISA, Junior ISA, SIPP and Fund & Share Account.


  • Investors who wish to switch need to allow more time for their existing units to be sold (usually at least one extra day and in some cases longer). We cannot offer any definitive deadlines for switches because some fund managers take longer than others to confirm the details of each sale.

    Therefore if you wish to switch into CF Woodford Income Focus Fund at launch we suggest you give us your instructions in plenty of time. Existing funds will be sold as normal when instructions are received and cash held pending the launch of the new fund. Investors should remember that they will not benefit from any rise in the market while cash is held. If a switch instruction is received and the sale proceeds are not available in time for the launch then they will be reinvested after the launch at the prevailing fund price. Please remember that it could also take several weeks before Neil Woodford’s portfolio is fully invested.


  • As a new fund, the CF Woodford Income Focus Fund doesn’t have a historic yield figure. The manager will seek to provide income of 5p per share per annum once the fund is fully up and running (the launch price is £1 per share). 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 income is variable and there are no guarantees any specific level of dividend will be achieved.


  • The fund will pay income quarterly, on 31 March, 30 June, 30 September, 31 December. Please note the first income payment is due to be made on 30 September 2017.


  • There is a tiered annual charge to hold funds in Vantage, with a maximum of just 0.45% per annum. See our Tariff of charges for details.


  • The standard annual charge for this fund is 0.75%. Our clients will invest in a share class with a 0.65% annual management charge, and in addition receive an annual loyalty bonus of 0.05%, bringing the overall annual cost down to just 0.6%. Please note loyalty bonuses may subject to tax in the Vantage Fund & Share Account.


  • Most funds have an annual management charge and a separate other expenses figure, which together make up the On-going Charge Figure (OCF). However with this fund Woodford Investment Management is absorbing all the other expenses of the fund into the annual management charge. Therefore investors through HL will pay a flat charge of 0.6% to the fund manager.


  • Yes, although at present we are only taking applications for the current tax year (2016/17). We anticipate we will be able to accept 2017/18 ISA applications from 22 March.


  • Yes, you can either invest in a Junior ISA (if your child is eligible), a Junior SIPP or in a Fund & Share Account designated to your child. Please note you can only set up a designated Fund & Share Account or Junior SIPP with a paper application, you cannot apply by telephone or online. A Junior ISA or Junior SIPP must be opened by the parent or legal guardian of the child. Once opened, anyone is able to contribute to the account but investment instructions for a Junior ISA must be given by the registered parent or legal guardian.


  • This fund is available in both income and accumulation shares. With income shares, income is distributed to investors, where it can be paid out or reinvested. With accumulation shares, any income is rolled up within the fund increasing the value of the shares. Generally, accumulation shares offer a more efficient way to reinvest any income.


CF Woodford Income Focus Fund

Important: Investments can go down in value as well as up, so you might get back less than you invest. The value of tax savings will depend on your circumstances and tax rules can change over time. If you are unsure of the suitability of any investment for your circumstances please contact us for advice. Once held in a SIPP money is not usually accessible until age 55 (rising to 57 in 2028).

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