CF Woodford Equity Income fund

Managed by one of the most well-known and respected fund managers of the last 25 years, Neil Woodford, this popular fund has just passed its first anniversary. Both strong and defensively aligned, the legion of loyal followers have benefitted from a style that is robust, steady and resilient.

Whilst the core of this portfolio is defensive and less susceptible to extreme market volatility, Neil has remained firmly of the belief that small and occasionally unlisted companies in the UK have the potential to be successful and is therefore prepared to invest in these. Such companies will only constitute a very small part of the overall portfolio however, they can be pivotal to the fund’s journey, potentially adding excitement and punch, much like new young stars in the England cricket team. For investors seeking a core UK dominated equity income investment then this fund may well be suitable.

Schroder Asian Income

Whilst the title stipulates ‘Asia’, the fund currently has around 22% exposure to Australia. Managed by Richard Sennitt, the fund aims to deliver a growing level of income in a low return world. With a current yield circa 4% the fund invests in between 60 to 80 companies throughout the Asian territories – of which Australia is a component.

The company selection process takes into account economic impacts and market risks, events and cycles. In terms of individual stock selection, the process looks at the actual value of a company, the ability to sustain its returns, the management quality and overall earnings potential. This fund is best suited for those investors who are prepared to diversify their income seeking opportunities away from the UK, and who also believe the region offers more than simply the growth potential seen in the past.

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