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
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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.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
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