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Neil Woodford’s new fund launch – CF Woodford Equity Income

At Bestinvest we have been researching fund managers for a quarter of a century and over that time we have seen plenty of managers come and go. It is a simple fact that only a handful of fund managers achieve track records spanning more than 20-years, let alone significantly beat the markets over the long run.

One manager who we have backed almost continually since we began researching funds is Neil Woodford, who built an impressive track record of more than 25 years on the Invesco Perpetual High Income fund as well as other mandates. Over that time the fund managed turn an investment of £10,000 into £225,000 with income reinvested, ranking it first place in the IMA UK Equity Income sector. Please remember that past performance is no guide to the future.


Woodford chart


Invesco Perpetual High Income 5 year performance:


Fund Name

% Growth


% Growth


% Growth


% Growth


% Growth


Invesco Perpetual High Income Inc






*End of February                                                                            Source: Lipper


New venture from one the UK’s leading fund managers

At the end of April this year Neil Woodford finally left Invesco Perpetual to start his own venture, Woodford Investment Management, where he will be supported by a number of his former colleagues.

The first fund to be launched, the CF Woodford Equity Income fund, will be managed by Neil Woodford himself. Given the reputation and record of the manager we see it as one of the most significant UK equity fund launches in recent years and expect it to attract considerable interest.

The fund will be launched on 2 June when it will be available for investment via the Bestinvest Online Investment Service, including within our ISA, SIPP, Junior ISA.


How will the CF Woodford Equity Income fund be managed?

The fund will be managed in a similar manner to Neil Woodford’s previous Invesco Perpetual funds, with an emphasis on targeting cash generative companies at attractive valuations and holding them for the long-term rather than as short-term trades. Woodford is a high conviction manager who is prepare to ignore major sectors if he feels they are unattractive. It is an approach that in the past has proved particularly defensive in tougher markets.

Although the fund will aim to generate an income 10% higher than the dividend yield of the FTSE All-Share Index and is anticipated to yield 4.0% at launch, with income distributions paid quarterly, the focus will be on overall return. While the fund will invest principally in the UK, up to 20% may be invested in international companies.*


Launch details

The CF Woodford Equity Income fund will be launched with an initial offer period from 2 to 19 June with a fixed price of £1.00 per unit during this period. The fund will continue to be available for new investment after the launch period, with the price reflecting the value of the portfolio.

There will be no initial charge on the fund and a low on-going charge of 0.75%. When combined with Bestinvest’s low cost Online Investment Service fees we believe this represents value for accessing one of the UK’s most successful fund managers.


What about the Invesco Perpetual High Income and Income funds?

Neil Woodford’s former Invesco Perpetual High Income and Invesco Perpetual Income funds are now being managed by Mark Barnett, who also has a very strong track record spanning 14 years in the UK Equity Income sector. These funds therefore continue to be rated highly by the Bestinvest research team.


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The value of your investment can go down as well as up, and you can get back less than you originally invested.

The Bestinvest Online Investment Service, including any account analysis and investment reports provided by our guidance services, is an online execution-only dealing service for investors who want to make their own investment decisions. It does not provide advice on the suitability of products and investments; if you are unsure about the suitability of any investment you should seek professional advice. Clients of our Investment Advisory Service and Managed Portfolio Service can use the website to obtain current valuations of their investments but cannot trade on these accounts online and should call their adviser if they wish to discuss changes to their investments.

Past performance or any yields quoted should not be considered reliable indicators of future returns. Restricted advice can be provided as part of other services offered by Bestinvest, upon request and on a fee basis. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

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