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Star manager Neil Woodford has confirmed he will launch a second equity income fund for retail investors in March.

The fund – now revealed to be Woodford Income Focus – will look to deliver at least 20 per cent more income than that delivered by the FTSE All-Share over a rolling five-year period, writes Aime Williams.

It was reported in June that Woodford had sent a questionnaire to investment intermediaries in order to gauge appetite for a high-income fund investing in listed companies, with no geographical restraints.

The new fund will aim to deliver 5 pence per share in its first calendar year in 2018 and income growth thereafter, according to a person familiar with the matter.

This is higher than the 3.7 per cent yield offered on the popular Woodford Equity Income fund, which was the top-selling fund among retail investors in 2015.

Details on the costs and charges have not yet been disclosed.

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