Top U.K. Asset Manager Mulls New Fund
June 08 2016 - 10:40AM
Dow Jones News
Neil Woodford, one of the U.K.'s best known fund managers, is
considering a new fund.
Mr. Woodford, who spent more than two decades at Invesco
Perpetual before leaving to set up his own asset management firm in
2014, has been canvassing private investors and intermediaries to
gauge interest in a new equity fund.
According to an extract from a document sent by Woodford
Investment Management to investors and seen by The Wall Street
Journal, the proposed new fund would offer a higher yield than the
3.7% offered by the existing £ 8.6 billion ($12.5 billion) CF
Woodford Equity Income Fund, launched about two years ago.
It is anticipated that at least 85% of the assets within the
prospective new fund's portfolio will be dividend paying and, as
such, it would invest only in quoted companies, according to the
document.
The document also says that while the fund would primarily
invest in U.K.-listed companies, it wouldn't be subject to
geographic constraints.
In addition to the existing equity income fund, WIM manages the
Woodford Patient Capital Trust, launched last year, which aims to
deliver a return in excess of 10% per annum over the longer
term.
Mr. Woodford has for years been known for contrarian views and
in 2008 sold out of U.K. bank stocks before the worst of the
financial crisis.
His current top holdings in the equity income fund include
Imperial Brands, AstraZeneca, GlaxoSmithKline, British American
Tobacco, Legal & General, Reynolds American, Provident
Financial and BT Group.
He joined Invesco in 1988, building up a loyal following. Just
before his departure from that firm, he oversaw around £ 27 billion
across six funds, scoring returns of about 12% annually in his last
five years.
This story first appeared on WSJ City: Fast, fact-packed updates
on financial news impacting London and beyond. Made for
mobile.Â
Write to Josie Cox at josie.cox@wsj.com
(END) Dow Jones Newswires
June 08, 2016 10:25 ET (14:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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