Neil Woodford has finalised plans for a higher yielding version of his flagship £9bn Income fund and will launch the product next month, Investment Adviser can reveal.
The fund - called Woodford Income Focus - will not target a specific yield but intends to provide 20 per cent more than the FTSE All-Share over a rolling five-year period.
Investment Adviser understands the fund will aim to deliver income of 5p per share in 2018, its first full calendar year, and focus on a sustainable level of growth thereafter.
The fund, first mooted last summer, will do away with Mr Woodford's favouring of unlisted stocks in order to produce the higher yield. The manager will instead be able invest more in global shares.
Unlike the existing Woodford Equity Income fund, which can only invest 20 per cent overseas, the new product will not be geographically constrained. It is expected to be predominantly UK-focused nonetheless.
A spokesperson for Woodford Investment Management said: “Woodford Investment Management confirms that it intends to launch the CF Woodford Income Focus Fund in March 2017, with a fixed-offer period. The dates will be confirmed in due course.”
Ongoing charges for the new product have yet to be disclosed.
