Woodford Income Focus Fund

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Sally57
Sally57 Posts: 205 Forumite
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in Savings & investments
Neil Woodford is launching is new fund CF Woodford Income Focus Fund on the 20 March (which is the last fund he intends to launch) and this fund will be specifically focused on income.

He also says that unlike his other two funds there will be no geographical constraints and he will only invest in quoted assets and not and will not offer exposure to unquoted securities. The fund will not target a specific yield. The fund will aim to deliver an income of 5 pence per share per annum with the prospect of a modest, sustainable income growth over a 5 year rolling period thereafter!

What's everybody's thoughts/comments on this new fund compared to other high quality UK Equity Income funds in the sector?
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  • Masomnia
    Masomnia Posts: 19,506 Forumite
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    Personally I'm always a bit sceptical of the 'celebrity' fund managers, the fashionable funds, and their abilities. It'll be interesting to know what the charges are!
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
  • StellaN
    StellaN Posts: 354 Forumite
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    Sally57 wrote: »
    Neil Woodford is launching is new fund CF Woodford Income Focus Fund on the 20 March (which is the last fund he intends to launch) and this fund will be specifically focused on income.

    He also says that unlike his other two funds there will be no geographical constraints and he will only invest in quoted assets and not and will not offer exposure to unquoted securities. The fund will not target a specific yield. The fund will aim to deliver an income of 5 pence per share per annum with the prospect of a modest, sustainable income growth over a 5 year rolling period thereafter!

    What's everybody's thoughts/comments on this new fund compared to other high quality UK Equity Income funds in the sector?

    I see in the launch literature that there is mention of a 5% yield which seems high for an income fund?

    Also, if there are no geographical constraints is this not more of a global income fund (albeit with a high UK content), and if so, where does this fund fit with one's asset allocation?
  • Rollinghome
    Rollinghome Posts: 2,676 Forumite
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    Since leaving IP and launching his Woodford Equity Income fund it now lies 78th out of 87 in its sector. His other product, the IT Woodford Patient Capital Trust was launched at 100p but is now at 93p. Both might be just bad luck but taken in isolation the performance wouldn't impress.

    The latest fund I gather is to include some global stocks even though he admits he isn't experienced as a global fund manager. Looking at what the fund is expected to be, how does it fit with your existing investments, always the important bit, or is it just the name that attracts?

    Think I'd be tempted to sit on the sidelines for a bit, let others pick up the launch costs, and see how it goes. Of course it could all go swimmingly, third time lucky, and then you might kick yourself for ever doubting him.
  • StellaN
    StellaN Posts: 354 Forumite
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    Rollinghome wrote: »
    Since leaving IP and launching his Woodford Equity Income fund it now lies 78th out of 87 in its sector. His other product, the IT Woodford Patient Capital Trust was launched at 100p but is now at 93p. Both might be just bad luck but taken in isolation the performance wouldn't impress.

    You are quite right that the Woodford Equity Income Fund is in the bottom quartlie but purely for for 2016 making just a total return of 3.19% as against a 16.75% rise in the FTSE All Share Index.

    However, the fund remains the sector’s best performer since launch in June 2014 with a 30.24 per cent total return (FE Trustnet figures).
  • Rollinghome
    Rollinghome Posts: 2,676 Forumite
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    edited 25 February 2017 at 4:45PM
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    You're right, I only glanced at the last year's figure because there isn't a 3 year figure yet. At least part of the problem is likely to be that it's in the all-companies sector when most funds looking for income have suffered. It also didn't suffer the same dip as some other funds a year ago. So I guess it depends on whether you think the good times will return for the stocks he favours and how much you want to concentrate on income.
  • george4064
    george4064 Posts: 2,811 Forumite
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    Masomnia wrote: »
    Personally I'm always a bit sceptical of the 'celebrity' fund managers, the fashionable funds, and their abilities. It'll be interesting to know what the charges are!

    I read the charge will be 0.75%, however some platform(s) will have a special 0.65% share class (most likely HL if I had to guess).
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

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  • talexuser
    talexuser Posts: 3,499 Forumite
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    His charges are favourable, one of the factors in setting up his company was to lower charges. I sold half of Perpet High Income soon after he set up and bought at 99p in Jun 14. It is now 130p for a 31% gain for me. I'm not worried about the recent dip yet, having seen similar when he was a Perpetual and I stuck with him for something like 20 years, bouncing back strongly after avoiding the tech crash etc. He specifically said don't expect miracles from the Patient fund, it is a long term punt, I ignored it. I don't know about the new fund but would never buy at launch, wait and see a little and look for a dip if serious.
  • JohnRo
    JohnRo Posts: 2,887 Forumite
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    Sally57 wrote: »
    What's everybody's thoughts/comments on this new fund..

    Not the least bit interested in it.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • dunstonh
    dunstonh Posts: 116,387 Forumite
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    What's everybody's thoughts/comments on this new fund compared to other high quality UK Equity Income funds in the sector?

    Are you asking us to compare something that does not exist yet with no data or info with things that do?

    Fund management is very much a team thing. The successful managers have a team of people working to get the results. There have been many star managers that have set up their own boutique firms or specialist funds but very few that have been anywhere near as successful as they were in their original set up.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • StellaN
    StellaN Posts: 354 Forumite
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    dunstonh wrote: »
    Are you asking us to compare something that does not exist yet with no data or info with things that do?

    In fairness, I think the OP as she said was just asking for comments/views on Woodford's new fund in general but maybe didn't word it quite right?
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