Yahoo Finance Star fund manager Neil Woodford launches Woodford Income Focus Fund
Neil Woodford has unveiled further details of the new Woodford Income Focus fund to be launched on 20 March.
The fund will consist of around 50 stocks which will be more concentrated than the existing fund in terms of the number of companies within it.
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The fund will aim to deliver an income of 5p per share in 2018, equivalent to a yield of 5% in that calendar year on the initial launch price of £1.
Commenting on the new fund launch Laith Khalaf, senior analyst at Hargreaves Lansdown says: “Woodford Income Focus will tick a lot of boxes for investors seeking an income from their savings in a world where cash and bonds just don’t cut the mustard any more.
“Woodford’s performance has been relatively weak in the last year or so, but investors shouldn’t let that deter them; his long term record is peppered with periods of underperformance, yet he has delivered exceptional value for those who are willing to stick with him,” adds Khalaf.
The fund will reside in the specialist sector in order to afford the manager the flexibility to invest more than 20% in overseas shares if he sees fit (20% being the maximum permitted by the rules of the UK Equity Income sector).
Khalaf says: “Woodford is a household name with DIY investors, so we expect a high level of interest in this new fund offering, particularly with interest rates still so low, and the end of tax year ISA deadline looming.”
Hargreaves Lansdown comments new fund will appeal to those investors prioritising income over growth, while the existing fund is more suited to those seeking long term total returns.
Written by London-based journalist Tanzeel Akhtar. Her work has been published in the Wall Street Journal, FT Alphaville, CNBC, Citywire, Euromoney, Interactive Investor.
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