Neil Woodford optimistic about the UK as he reveals all 50 stocks in his new fund
Woodford appears to be optimistic about the state of the UK domestic market with banks (Lloyds Banking Group) homebuilders (Taylor Wimpey, Barratt Developments) and building material firms (Forterra) all featuring in the Income Focus Fund.
The new offering aims to deliver a higher rate of income than Woodford’s flagship Equity Income fund.
There is some overlap between the two funds, with companies such as AstraZeneca, Legal & General and Provident Financial appearing in both.
However, the new fund is more concentrated, with 50 holdings compared to 131 in the Equity Income fund.
Commenting on his stock selection, Woodford said: “In the run up to the launch of the Income Focus Fund I had said that I believed there was an attractive domestic opportunity, in part because people were too downbeat about the UK economy. The new portfolio is a manifestation of this view but in a more income-focused way.”
He said the “bearish mood” has resulted in share price falls in some domestic cyclical sectors.
“I have been taking advantage of some of the depressed valuations in domestic cyclicals, selectively buying stocks in sectors such as housebuilders, banks, construction, building materials and property for the new fund.
“There are also some familiar names in the portfolio, which is in great shape and I am extremely confident it will deliver the income target we set when we launched the fund in March.”
The full list of holdings can be viewed here.