Woodford Considers High Income Equity Fund Launch

Neil Woodford has sent a letter to private investors and intermediaries to gauge appetite for a new UK equity income fund targeting a higher yield of 4.5%

Emma Wall 8 June, 2016 | 3:18PM

Star UK equity investor Neil Woodford is considering launching a second income fund targeting a higher yield of 4.5%. The £9 billion Woodford Equity Income fund currently yields 3.96.

Woodford has sent a letter to private investors and intermediaries to gauge appetite for the proposed fund, which may call to investors’ minds his former fund Invesco Perpetual High Income. High Income has £11.6 billion under management and run by Mark Barnett, currently yielding 3.6%. Under Woodford’s stewardship the fund yielded as much as 8%.

“The proposed new fund would offer a consistently higher yield than the CF Woodford Equity Income Fund. It is anticipated that at least 85% of the assets within the portfolio will be dividend paying and as such, the fund will invest in quoted companies only,” the letter reads.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Invesco High Income UK Inc282.06 GBP-0.13
LF Woodford Equity Income C Sterling Acc13.08 GBP0.08

About Author

Emma Wall  is former Senior International Editor for Morningstar

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