Woodford Investment Management, the fund house founded by one of the most well-known names in the City, has published the full list of holdings in its newly-established income fund.
Launched in March, the Woodford Income Focus fund is made up of 50 stocks, with large weightings towards financials, industrials and firms providing goods and services to consumers.
Top holdings include AstraZeneca with 7.4 per cent exposure, Legal & General at 6.6 per cent and Imperial Brands at 4.9 per cent.
The fund is focused on dividend-paying stocks, without being limited in terms of geography.
The company’s head of investment Neil Woodford said people have been “too downbeat” about the UK economy, which he currently sees as an attractive domestic opportunity.
“The bearish mood has resulted in very big share price falls in some domestic cyclical sectors and it is this opportunity set that I see in the stock market right here, right now.”
The investment veteran, who made his name at Invesco Perpetual, said he has been taking advantage of some of the depressed valuations in domestic cyclical stocks, therefore buying into house builders, banks, construction, building materials and property.
Mr Woodford also pointed out that many names in the portfolio are familiar to the holdings in his flagship £10bn Equity Income fund.
“These are in great shape and I am extremely confident it will deliver the income target we set when we launched the fund,” he added.
The Income Focus vehicle raised £553m during the offer period.
Mark Dampier, head of research at FTSE 100 wealth manager Hargreaves Lansdown, echoed Mr Woodford, pointing out that the big holdings are quite similar to his older income fund.
However, the Income Focus portfolio has 50 holdings compared to the flagship fund, which has 131 and contains a large number of smaller growth companies.
Mr Dampier also said both Equity Income and Income Focus funds now have a “fair slice” of British cyclical companies, such as Lloyds, British Land and Taylor Wimpey.
“There’s more than a whiff of optimism about the UK economy in Neil Woodford’s new portfolio, which suggests a shift in his market outlook. He doesn’t have a crystal ball, but his reading of the big macroeconomic picture has been uncannily accurate in the past.”
He also pointed out that Woodford has a good amount of exposure to the UK property market, with holdings in a number of real estate investment trusts (Reits) and housebuilders, alongside Lloyds which has exposure to the UK property market through its mortgage book.
Mr Dampier said delivering a high and growing income no easy task, adding: “Ultimately we will only be able to measure the fund’s success in the years to come, but Neil Woodford’s exceptional track record lends confidence.
“Our initial feeling is that the Neil and his team have certainly grasped the bull by the horns and are backing their convictions."
1 | AstraZeneca | Health Care | 7.39 |
2 | Legal & General | Financials | 6.59 |
3 | Imperial Brands | Consumer Goods | 4.93 |
4 | Provident Financial | Financials | 4.54 |
5 | AbbVie | Health Care | 3.58 |
6 | Lloyds | Financials | 2.66 |
7 | Taylor Wimpey | Consumer Goods | 2.52 |
8 | SSE | Utilities | 2.52 |
9 | Barratt Developments | Consumer Goods | 2.50 |
10 | ICG | Financials | 2.48 |
11 | Aviva | Financials | 2.46 |
12 | British American Tobacco | Consumer Goods | 2.45 |
13 | Gilead | Health Care | 2.13 |
14 | NewRiver REIT | Financials | 2.08 |
15 | Lancashire | Financials | 2.04 |
16 | Card Factory | Consumer Services | 2.02 |
17 | Phoenix | Financials | 2.01 |
18 | Next | Consumer Services | 2.00 |
19 | Capita | Industrials | 1.89 |
20 | Softcat | Technology | 1.87 |
21 | Forterra | Industrials | 1.81 |
22 | Raven Russia 12% pref | Financials | 1.63 |
23 | Micro Focus | Technology | 1.53 |
24 | Sirius Real Estate | Financials | 1.52 |
25 | IAG | Consumer Services | 1.50 |
26 | Saga | Consumer Services | 1.50 |
27 | AA | Industrials | 1.49 |
28 | Homeserve | Industrials | 1.48 |
29 | Babcock International | Industrials | 1.47 |
30 | Paypoint | Industrials | 1.43 |
31 | Morses Club | Financials | 1.37 |
32 | BCA Marketplace | Industrials | 1.37 |
33 | National Grid | Utilities | 1.30 |
34 | Leg Immobilien | Financials | 1.27 |
35 | British Land | Financials | 1.25 |
36 | Crest Nicholson | Consumer Goods | 1.22 |
37 | Bovis Homes | Consumer Goods | 1.15 |
38 | Raven Russia | Financials | 1.12 |
39 | Eddie Stobart Logistics | Industrials | 1.09 |
40 | Utilitywise | Industrials | 1.03 |
41 | Redde | Financials | 1.03 |
42 | Hansteen | Financials | 1.02 |
43 | Londonmetric Property | Financials | 1.00 |
44 | Watkin Jones | Consumer Goods | 1.00 |
45 | Pennon | Utilities | 0.97 |
46 | Topps Tiles | Consumer Services | 0.75 |
47 | Non-Standard Finance | Financials | 0.66 |
48 | Stobart | Industrials | 0.45 |
49 | Hostelworld | Consumer Services | 0.39 |
50 | Regional Reit | Financials | 0.27 |
katherine.denham@ft.com