Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Neil Woodford’s flagship Income fund hits £10bn

Neil Woodford’s flagship Income fund hits £10bn

Neil Woodford’s flagship income fund has heralded the launch of his new focused mandate by hitting the £10 billion mark.

Wealth Manager has learnt the CF Woodford Equity Income fund, which raised a record £1.6 billion at its launch in June 2014, broke the £10 billion barrier late on Friday.

The fund has been one of the best-selling funds in the UK since launch as Woodford brought the impressive track record he established at his previous employers, Invesco Perpetual, to the fund.  Since launch it sits in the top quartile of its peer group, returning 35% versus the 23% gain in the peer group.

This is despite a relatively disappointing 2016 for Woodford as his zero weighting in oil and gas hit performance, with the fund returning just 3.2% in 2016, well below the 16.8% rise in the FTSE All Share.

Woodford admitted 2016 had ‘tested his resolve’ – and that of clients too.

Yet this did not stop investors keeping faith in Woodford, who built his reputation by refusing to invest in technology stocks during the dotcom bubble.

According to the annual Pridham fund sales report, Woodford’s eponymous investment firm was the sixth biggest selling asset manager in 2016, attracting net inflows of just over £1 billion.

The £10 billion landmark came on the eve of the launch of the Woodford Income Focus fund - the third fund in his business' stable.

The new fund, which yields around 1% more than the existing fund at 5%, will contain around 50 stocks.

Anticipation has been growing on the make-up of the fund, with Woodford indicating in a launch event last month he may even return to the banking sector for his new vehicle.  He also outlined why Brexit had made him more bullish. 

It is believed the fund will contain approximately 20 holdings which do not feature in his other funds.

The Income Focus fund also has the flexibility to invest internationally, although it’s expected to be predominantly focused on UK companies at launch.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Related Fund Managers

Neil Woodford
Neil Woodford
88/88 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: -4.35%
Citywire TV
Play Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter