Omnis Income & Growth Fund
Woodford Investment Management Limited.
Key fund facts
- A mix of attractive investment opportunities - a portfolio built around income generation and exciting early-stage businesses.
- Making the right decisions when conditions are difficult - investing only when there is a compelling long-term reason to do so.
- A long-term focus - cutting through short-term pressures and focussing all efforts on providing an absolute long-term return for investors.
The aim is to provide income together with capital growth.
The Omnis Income & Growth Fund will offer exposure to a mix of attractive investment opportunities, selected by Neil Woodford, with a portfolio built around income generation and exciting early-stage businesses.
Investment process overview
There are five main elements that Neil looks to harness:
1. An active strategy
Being an active investor means doing something different to the market. It means aiming to add value through the investment process, buying stakes in businesses and helping them to fulfil their long-term potential. Every investment made has a rationale – never to make a portfolio look more like an index. Performance can be compared to the market of course, but Neil looks to better it over the long-term by doing things differently.
2. Company engagement
Successful investment requires a partnership between managers and owners. Woodford Investment Management engages actively with company management teams to represent its investors’ best interests; seeking to influence change where it is needed.
3. Long-term focus
Equity markets can of course move every day. Sentiment and whim can sometimes override fundamental considerations, but it is the longer time periods that count. Neil looks beyond short-term noise to focus on the long-term driver of share prices. He believes that by focusing on valuation and identifying companies that can deliver sustainable growth, today or in the future, he can deliver great long-term outcomes for investors.
4. Core valuation drivers
The team views all companies through the same valuation lens – be they large or small, quoted or unquoted. Combining rigorous analysis of companies with a view on the variables that can impact them provides a focus on what matters: the long term and the fundamentals.
5. Absolute return delivery focus
It is central that investors expect a positive return and protecting capital is key. In the case of younger businesses, you may have to tolerate a loss on an individual stock, although screening efforts aim to minimise this risk. The fund will aim to achieve capital preservation through diversification, by investing in a larger number of smaller positions.There may be periods when the fund falls in value, but the manager’s disciplined strategy, with a focus on valuation and diligent stock picking, seeks to prevent any temporary capital losses becoming permanent.