The CF Woodford Income Focus fund will be launched in March 2017 with a fixed-offer period. It is thought that it will aim to produce a 4% yield for investors from listed stock including the ability to put more than 20% in overseas stocks. More details will be released shortly.
Commenting on the news, Mark Dampier, head of investment research at Hargreaves Lansdown, said: “The new fund differs from Woodford Equity Income by focusing on producing a high income. With a million more people reaching age 65 by 2020 the need for income with interest rates so low has never been greater.
“The new fund will also be able to hold over 20% overseas if the opportunities can be found, although we expect it to launch with a substantially UK focus to start with – the Equity Income fund can hold up to 20% overseas.
“From a launch price of 100p, Woodford is aiming to provide a pretty punchy 5p income in 2018 and this will limit the opportunity for growth, so for me this fund will be very much for those seeking and prioritising income over growth. This contrasts to the Woodford Equity Income which is more growth orientated.”