Neil Woodford’s new fund: keep a cool head

At this early stage, investors should trade carefully and limit their exposure.

Neil Woodford, Britain's best-known fund manager, has released the prospectus for his new fund, the Woodford Patient Capital Trust (LSE: WPCT). As previously announced, this fund focuses on unlisted companies at an early stage in their development.

The idea is that Woodford will be able to use his experience to identify those that will grow at a fast rate and produce attractive investment returns. Around a quarter of the fund will be invested in low-risk stocks that will pay dividends to fund the estimated running expenses of 0.35% per year.

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