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Woodford Income Focus - moving to the UK Equity Income sector

Richard Wood | Tue 05 March 2019

Investments can go down as well as up so there is always a danger that you could get back less than you invest. Nothing here is personalised advice, if unsure you should seek advice.

The Woodford Income Focus Fund is moving from the IA Specialist sector to the IA UK Equity Income sector.

The fund was originally set up so Neil Woodford could invest in what he thinks are the best income opportunities from across the globe. It's always been largely invested in UK shares though because this is where he's found some of the most attractive yields. He expects this to be the case in the future as well although it should be remembered all yields are variable and not guaranteed.

Putting the fund in the UK Equity Income sector gives investors a clear idea of what the fund is about - aiming to generate a high and sustainable income, largely from UK companies.

Woodford will still be able to invest up to 20% of the fund outside the UK, which he thinks provides enough flexibility. The fund will also need to have a higher yield than the FTSE All Share Index over a rolling three year period to remain in this sector.

Our view

We think the UK Equity Income sector is the most appropriate for the fund. It’s already mostly invested in UK shares and currently has a yield comfortably ahead of the FTSE All Share’s, though this is variable and can fall. The fund’s charges are taken from capital, increasing yield but reducing growth potential.

The fund's main objective, to provide a high level of income, remains the same. We still think it has good long-term potential.

Find out more about this fund including charges

Woodford Income Focus key investor information

Important information - Please remember 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 article is provided to help you make your own investment decisions, it is not advice. If you are unsure of the suitability of an investment for your circumstances please seek advice. No news or research item is a personal recommendation to deal.


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