Woodford Investment Management is testing the waters on whether to launch a higher-income version of his existing open-ended income product.
A survey has gone out to private investors and intermediaries and is gauging interest for the new fund which will offer a “consistently higher yield” than the £9bn Woodford Equity Income product.
In two of the starkest differences between this and the existing fund, the new version will not invest in unlisted stocks and will see 85 per cent of the holdings pay dividends. Also, the fund would not be limited to UK-listed securities.
The anticipated yield for such a product would have an approximate range of 4.2 per cent to 4.5 per cent.
Craig Newman, chief executive at the fund house, said: “We’re currently speaking to private investors, intermediaries and platforms to glean views and appetite for a new equity fund targeting a higher income.”
The vehicle would become Woodford’s third along with the current income fund and the £803m Woodford Patient Capital Trust.
