Woodford Fund Could Be Jettisoned From Equity Income Sector

Challenging economic climate means one-year yield is below official sector requirement – despite strong returns for investors 

Emma Simon 1 March, 2016 | 3:29PM
Facebook Twitter LinkedIn

Neil Woodford’s flagship fund risks being expelled from the Investment Association’s UK Equity Income sector, as its one-year yield is below the sector’s target.

CF Woodford Equity Income, which launched in June 2014, has proved popular with many private investors, and is now worth £8.3 billion. The fund is rated Bronze by Morningstar analysts.

The fund’s yield for 2015 calendar year was 3.4%. Over the same period the FTSE All-Share yielded 3.7%. Under Investment Association rules funds in the Equity Income sector should yield 110% of the FTSE yield, over a three-year rolling basis.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

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.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Barclays PLC200.60 GBP0.00Rating
Invesco UK Eq High Inc UK Inc326.46 GBP0.46Rating
Invesco UK Equity Inc UK Inc1,303.96 GBP0.54Rating
LF Equity Income A Sterling Acc3.40 GBP0.00
Schroder UK Equity Inc7.99 GBP-0.05Rating
St James’s Place UK Hi Inc Unit Tr L acc  

About Author

Emma Simon

Emma Simon  is a financial journalist, specialising in investment and consumer issues, writing for Morningstar.co.uk