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Upcoming fund launch – Woodford Income Focus

Star fund manager Neil Woodford is set to launch a new income fund next month. The CF Woodford Income Focus fund aims to pay investors a high income yield by investing in listed companies from the UK and across the globe.

Lee Dooley Lee Dooley
28 February 2017

Aiming for a higher yield

The aim of the new fund is to give investors a higher income yield than the £9.6 billion Woodford Equity Income fund that launched in June 2014. In the fund’s first full calendar year (2018) it aims to pay out a 5% yield, with a growing level of income afterwards – although of course this isn’t guaranteed.

No strict long-term targets have been announced, but the fund manager will aim to reward his investors with a yield that is 20% higher than the FTSE All-Share index over a rolling five-year period. This could make the fund a good idea for investors seeking a regular income in today’s low-interest rate world.

What will the Woodford Income Focus fund invest in?

The fund manager has hinted that there will be a concentrated portfolio of around 50 stocks. Unlike his flagship Woodford Equity Income fund, Woodford Income Focus won’t invest in any unquoted companies.

It won’t have the same geographical restrictions either. The new fund can invest across the globe, giving Woodford the opportunity to search far and wide for dividend-paying companies – although we expect that there will be a UK focus. Because of the fund's flexible geographical allocation, it will sit in the IA Specialist sector.

When will the Woodford Income Focus fund launch?

Woodford Income Focus will launch on 20 March 2017. There will be a fixed-offer period with a share price of £1.

Sectors

This article is solely for information purposes and should not be construed as investment advice.