Following a re-appraisal of our list of rated funds, we have removed the Woodford Equity Income fund. This fund will now be rated one star, to reflect the withdrawal of future coverage. Our alternative, high-conviction ideas will benefit from ongoing monitoring.
Prices as at 01 Jul 2022.
Fund commentary last updated 06 Oct 2015.
Past performance is not an indication of future performance.
Capital at risk.
|Sector||UK Equity Income|
|Dividends paid||28 Feb, 31 May, 31 Aug, 30 Nov|
|Standard Initial Charge||0%|
|Initial Charge Via BestInvest||0%|
|Additional Bid/Offer Spread||0%|
|Annual Management Charge||0.75%|
|Ongoing Charges Figure||0.75%|
The portfolio includes companies of all sizes, but the bulk of it consists of FTSE 100 and FTSE 250 stocks. The manager also takes advantage of IA rules that allow him to invest up to 20% of the fund in overseas equities. Woodford believes that markets are inefficient most of the time with prices diverging from underlying value, and he aims to identify those stocks that are undervalued then hold them for the long term. Ideas are primarily generated internally, but may also come from external brokers and analysts and from conversations with company management teams. His research process looks at companies’ long-term growth prospects, competitive advantages, sustainability of cashflows and earnings, strength of balance sheet, and valuation. He prefers companies on reasonable yields, but there are no rigid yield criteria and his portfolio yield has often been at the lower end of his peer group. These criteria has led him to have significant weights in more defensive industries over the last few years, whilst preclude investing in cyclical businesses such as mining. Having said that, portfolio composition is driven to a great extent by valuation and may change to include more cyclical sectors, including banks amongst others. Woodford does not allocate to sectors from the top-down, but does put significant effort into forming a view on the domestic and global economy and how this will impact portfolio companies.
Past performance is not a guide to future performance. View full risk warning