Equity income star Neil Woodford's new Income Focus fund will invest mainly in UK equities and have some overlap with CF Woodford Equity Income (GB00BLRZQB71), but be lower risk.
Woodford Income Focus fund will initially aim to deliver an income of 5p per unit a year, although will not target a specific yield. Mr Woodford will aim to grow the fund's dividend by low single-digit increases year on year. It launches on 20 March and the ongoing charge will range between 0.65 per cent and 1 per cent, depending on which share class you buy.
Mr Woodford says Woodford Income Focus will be the last fund he will personally manage at his firm, Woodford Investment Management. But investors may soon be able to invest in funds launched by this firm run by other managers - Woodford Investment Management is interviewing new talent with a view to building itself out to take on rival boutiques. But Mr Woodford said it was hard to find managers and analysts who hadn't been "ruined" by the industry, which "teaches them the wrong things".