Should You Buy Neil Woodford's Fund?

ASK THE EXPERT: Legendary UK equity income fund manager Neil Woodford launches his eponymous fund this month. But should you buy it?

Emma Wall 5 June, 2014 | 9:23AM

Eight months after Neil Woodford announced his shock departure from Invesco Perpetual, investors have a chance to entrust the UK equity income guru with their cash once more. On June 19, CF Woodford Equity Income Fund will open its doors to the public, although Woodford fanatics can pre-order the fund through various fund supermarkets today.

Woodford has promised investors that the new fund’s portfolio will feature many of the names he has held over the last 25 years at Invesco. The new Woodford fund will be targeting a 4% yield with aims to grow the yield to a “high single digit”.

As well as key players investors will be familiar with such as pharmaceutical stocks and tobacco companies there will be an allocation to unlisted equities, particularly with a technology and innovation theme. Unlisted and micro-cap equities is a sector that Woodford feels passionate about and it is widely expected that he will launch a private equity fund in the near future. A second fund launch has been referenced by Woodford himself, although no date or portfolio information has been released.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
British American Tobacco PLC2,588.00 GBP0.00
GlaxoSmithKline PLC1,443.00 GBP0.00
HSBC Holdings PLC466.55 GBP0.00
Invesco High Income UK Inc270.20 GBP0.74
Invesco Income UK Inc1,062.57 GBP0.82

About Author

Emma Wall  is former Senior International Editor for Morningstar

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