Woodford Income Focus fund
Neil Woodford has launched a new fund which started trading on 13th April 2017.
Key facts:
Fund name: Woodford Income Focus
Distributions: Paid quarterly
Download the brochure and the KIID (which you must have read before investing).
How to invest:
- send us an application form with a cheque made payable to "Cofunds Ltd"
- call us or buy online using your debit card
- you can also transfer an existing ISA by completing an ISA transfer form today
Star manager continues his winning ways
The first fund Neil launched, after setting up his own fund management company, was CF Woodford Equity Income in June 2014. It soon became the best-selling fund for ISAs and, with income reinvested, has returned 25.92% for investors since that time, beating both the FTSE All Share (15.35%) and every single one of his peers: it is the top performing fund out of 73 funds in the IA UK Equity Income sector*. While past performance is not a guide to future performance, investors will be reassured that Neil has been able to so far replicate the investment process and success he enjoyed at Invesco Perpetual.
New fund, more income
CF Woodford Income Focus is also managed by Neil and aims to generate a higher income for investors than the CF Woodford Equity Income fund (currently 3.36%). Although there is no set target, the fund aims to distribute 5p per share in the first calendar year in 2018 and thereafter they should expect the fund yield to be at least 20% more than the income produced by the FTSE All Share index over a five-year rolling period.
The new fund also has a UK focus, but it doesn't have any geographical constraints, meaning Neil can invest in companies listed anywhere in the world. This should help the fund deliver a sustainable and growing income in the future, with the potential for capital growth as well.
Another notable difference to the CF Woodford Equity Income fund is that the CF Woodford Income Focus fund is unlikely to invest much in unquoted companies. Neil likes to invest a portion of the existing fund in these companies as they can often be very exciting, early stage, investment opportunities. However, they rarely offer a yield, so would not have a place in the new income portfolio, unless the growth opportunity is too good to ignore.
Darius McDermott, managing director of Chelsea Financial Services, commented: “Neil is a fantastic fund manager with a proven track record. We expect his new fund to be popular with our clients, particularly those who seek an income."