Managed by one of the finest fund managers in the UK, with an outstanding track record spanning more than 35 years.
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.
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
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.
Past performance is not a guide to the future. Source: Lipper IM, 01/10/88 - 01/01/17. Figures with income reinvested.
Past performance is not a guide to the future. Source: Lipper IM, calendar years 1988 - 2016