It makes perfect sense to say that if investors want the best income opportunities, they should not restrict themselves to just one market, particularly when said market has been thrown into uncertainty by Brexit.
“The UK market still probably has more income opportunities than, say, the US market, though European and Asian companies also offer really attractive yields,” adds Spencer.
“The question for us is does Neil Woodford have expertise in picking those European and Asian stocks?”
Andrew Johnston, senior research analyst at Square Mile Investment Consulting & Research, believes the new fund is likely to tick the right boxes for some clients, particularly those who are uncomfortable with the small-cap and unquoted element of Woodford’s other funds.
“We are really focused on the outcomes and performance objective as well as what the underlying investments are, so if Woodford is using global stocks to reach a certain performance objective that he is able to make clear to us then that’s one way we can measure it,” says Johnston.
“However, it might be slightly harder for investors to put this fund in portfolios in terms of where they can pigeonhole it.
“For those who already hold his CF Equity Income Fund, I would expect a large overlap in those mega-cap names. The new fund could launch with a significant UK bias though we must be prepared if that changes further down the line”.
