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LF Equity Income C

Bestinvest LogoFollowing 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.

PRICE (INC)

2.48p

PRICE (ACC)

3.01p

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.75%

ONGOING CHARGE

0.75%

YIELD

6%

1 YEAR
14.08%

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.

This fund targets long-term capital appreciation as well as a yield at least 10% above the UK stockmarket by investing across the market cap spectrum. Some private equity and overseas investments are also included. Manager Neil Woodford's style has been more risk-averse in recent past, typically favouring companies in more predictable industries such as healthcare and tobacco, and his portfolios can be heavily skewed to certain stocks and sectors. Having said that, Woodford will typically invest in parts of the market where he sees most value and the portfolio may exhibit different characteristics over time. He focuses on capital growth as much as income, so his funds have often been amongst the lower yielders in the sector.

Fund summary

SectorUK Equity Income
StructureOEIC
LaunchedJune 2014
Size£145m
Yield6%
Charging BasisCapital
Dividends paid28 Feb, 31 May, 31 Aug, 30 Nov

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.75%
Ongoing Charges Figure0.75%

Investment Process

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.

The information on this website is not intended to be advice or a recommendation to buy, sell or hold any investment mentioned. The value of investments and the income from them can go down as well as up and you may not get back the amount invested.

Past performance is not a guide to future performance. View full risk warning