I didn’t get round to scheduling this post last month but Dividend Drive’s recent post reminded me this was still in draft form, so am posting this belatedly.
Just over 12 months ago, I got caught up in all the hysteria around Neil Woodford setting up his own equity income fund and jumped onto the bandwagon with lots of other sheep investors.
For those not aware, Woodford is considered a bit of an investing wizard in the UK – he previously managed the Invesco Perpetual High Income Fund, which was the best performing fund in the equity income sector, turning a £10,000 investment into £230,000 over 25 years.
The CF Woodford Equity Income Fund is one of the few funds where the full portfolio of the fund is made public, instead of just the top ten or so with most other funds, it’s all quite transparent.
A year is a very short time to measure fund performances but it’s worth taking a little look at how his fund has done anyway:
It’s doing quite well it seems, easily beating both the FTSE All Share and IA UK Equity Income benchmarks over the same period (the figure includes dividends reinvested). Of course, there’s no guarantee this kind of performance will continue but it looks pretty good right now.
More info on how the fund has performed here.
This fund represents 9% of my fund portfolio and is now my only actively managed fund. A year ago, actively managed funds made up around 86% of my portfolio – I’ve come a long way since then (and cut down on fees), thanks to Tim Hale’s book and Monevator!
Once my portfolio gets closer to my targeted allocation, I may invest more in this fund.
Woodford’s new investment trust, Woodford Patient Capital Trust plc is also on my watch list; when it becomes available as a regular investment on one of my platforms,
I may consider chucking some money there too, although it’s trading at a pretty high premium of over 12% currently.