Neil Woodford is probably the most highly regarded fund manager in the UK. It’s easy to see why – his track record is nothing short of exceptional.
He recently resigned from Invesco Perpetual to set up his own business, and his new CF Woodford Equity Income Fund is launching shortly. Hargreaves Lansdown are offering an exclusive annual charge of just 0.6% – the lowest charge available anywhere.
But the question is “Should you get carried away by all this hype?” There are very few precedents. The closest is when Anthony Bolton, who had a similar track record with Fidelity Special Situations, moved on. He was never able to replicate that performance with his new funds.
My personal strategy is to only hold funds on the Hargreaves Lansdown Wealth 150 list so the CF Woodward Equity Income Fund qualifies. But I already hold a good selection of funds from the Equity Income Sector and I can see no reason for switching out of any of those funds. If and when any of them are removed from the Wealth 150 list I guess Neil’s new fund would be in pole position for the switch. So I am sitting on the sidelines for the time being.
If you have funds awaiting a home I would not argue against an investment particularly given my love of funds which pay a good level of dividend. But there is nothing here which should cause you to change your overall investment strategy. Don’t forget– medium term money only and don’t put too many eggs in one basket.
There is no particular benefit in getting in early. It is nothing like the Royal Mail privatisation where investors who got in early did very well.
Action Point
If you are interested go to www.hl.co.uk and download their free report . It’s your money. Do your research and then make a decision.
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