Renowned fund manager Neil Woodford is to launch a new fund targeting higher equity income in March 2017. The CF Woodford Income Focus fund will target an income of 5p a share in 2018, in contrast to CF Woodford Equity Income (GB00BLRZQB71) which pays 4p a year and growth-focused Woodford Patient Capital Trust (WPCT).
After 2018 the new fund will target modest sustainable growth, aiming to deliver a yield of at least 20 per cent more than that of the FTSE All-Share index over a rolling five-year period, although the fund has no specific yield target. And it will have no constraint on the countries it can invest in, suggesting Mr Woodford may also go further afield to secure high yields.
Mark Dampier, head of investment research at Hargreaves Lansdown, said: "The new fund will be able to hold over 20 per cent overseas if the opportunities can be found, although we expect it to launch with a substantial UK focus to start with."