Woodford Income Focus Fund Launch: All the Details

Star fund manager Neil Woodford has confirmed the details for his new Woodford Income Focus fund, with an expected 5% yield at launch and a portion of global stocks

Emma Wall 23 February, 2017 | 2:47PM

Neil Woodford has today confirmed that he will be launching a new Income Focus fund on March 20, subject to regulatory approval. Speaking to journalists in London he said this would be the final fund he will manage for Woodford Funds, completing plans set out at the launch of the company three years ago. However, he added that investors should expect the firm to launch other funds in the future, run by managers yet to be hired, growing the business to rival existing global asset managers.

“When we started the business, we always had three funds in mind which would sit across a risk spectrum,” Woodford said. “There will be some overlap in portfolio with Woodford Equity Income, but Equity Income is managed as a total return fund, targeting income and growth, so investors should expect the new fund to look quite different.”

For starters, there will be no 25% invested in unquoted companies, as every stock in Income Focus will be required to contribute to the yield. There will also be global stocks in the portfolio, although these will be in the minority, and the portfolio will remain predominantly domestically focused. Woodford does not want to be constrained by the Investment Association UK Equity Income sector requirement to have global stocks make up less than 20% of the total portfolio, and as a result the fund will sit in the Specialist Sector.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
LF Woodford Equity Income A Sterling Acc14.99 GBP-1.55
Woodford Patient Capital Trust29.45 GBP1.22

About Author

Emma Wall  is former Senior International Editor for Morningstar

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