Revealed: The Funds Hit by AstraZeneca Slump

Morningstar data reveals 17 equity income funds have overweight allocations to AstraZeneca in their portfolios, including star manager Neil Woodford

Karen Kwok 27 July, 2017 | 3:04PM

This morning the pharmaceutical company AstraZeneca (AZN) saw its shares fall more than 16% after the firm unveiled a setback to its stage four lung cancer trial.

But it is not just direct shareholders who have felt the hit. Thanks to a 5% dividend yield AstraZeneca is popular with many equity income fund managers – and passive tracker funds too. According to Morningstar Direct data AstraZeneca make up 3.33% of the FTSE 100 index, meaning any ETF or tracker fund will have a similar weighting, while many equity income funds have an even larger allocation in their portfolios.

Arguably the most well-known one is the Silver Rated CF Woodford Equity Income fund, which has AstraZeneca as the top holding in its portfolio, making up 8.9% of the fund. The fund has 81 stock holdings in total, of which 30.3% of them are invested in the healthcare sector.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
AstraZeneca PLC7,876.00 GBX-0.05
BlackRock Income and Growth Ord162.50 GBX0.00
Murray Income Trust Ord709.00 GBX-2.74

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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