Woodford to leave Invesco

A_Flock_Of_Sheep

Neil Woodford is set to leave IP 29 April 2014 to set up his own firm.

His announcement has already had an impact on EDIN and doubtless holders of IPHI will realise the losses over the next few days.

dunstonh

OEIC shouldnt suffer in the same way the IT would.

talexuser

Won't affect Income/High Income at all for the next 6 months. They will need careful monitoring next year to sell as soon as they start to underperform, but it does depend who they have to take over. Barnett has a good reputation, and I tend to go for the manager reputation when choosing funds so see no need to panic.
EDIN is another thing and might bounce soon if the dip is big enough? Buying opportunity?

BLB53

The IT have an independent board and could easily negotiate to retain Woodford as manager when he leaves Invesco - may be an opportunity to pick up the IT shares at a discount!

A_Flock_Of_Sheep

On another note any recommendations for a cheap tracker?

Interestingly the EDIN IT had fallen sharply by over 5% intraday simply on the basis Woodford is leaving Invesco.

BLB53

Interestingly the EDIN IT had fallen sharply by over 5% intraday simply on the basis Woodford is leaving Invesco.

So if it transpires he is staying on as manager, the share price will go up 5%!

talexuser

A_Flock_Of_Sheep wrote: »

On another note any recommendations for a cheap tracker?

I haven't any trackers myself...yet. But the standard cheapest are
HSBC ~0.27%
Fidelity Moneybuilder ~0.3%
Vanguard ~0.33%
but this is from memory and you'll have to look up their latest deals and minimum requirements etc or maybe someone here knows more up to date info.

Alternatively look at Exchange Traded Funds but I'm not sure if the total charges are that much cheaper.

You can get Vanguard at ~0.15% at some brokers but with a 0.5% entry fee, or at ~0.1% but £24 a year fee at Hargreaves, so it depends on how much you want to put in which works out cheapest.

Also cheapest is not always best if the tracking accuracy is poor and it under-charts significantly.

Glen_Clark

I buy Vanguard ETFs through https://www.X-O.co.uk and there is no holding charge, and no stamp duty. Charges are 0.1% for the FTSE 100 and 0.09% for the S&P 500 In theory the stamp duty is in the spread (difference between buying and selling price) but the spread still seems very small.

barak

talexuser wrote: »

I haven't any trackers myself...yet.

I'm disappointed that you ended that sentence with "...yet". [Don't do it!]

I find it somewhat bizarre that trackers are being discussed in a thread about Neil Woodford! Is everyone [except me!] giving up on active management?

A_Flock_Of_Sheep

barak wrote: »

I'm disappointed that you ended that sentence with "...yet". [Don't do it!]

I find it somewhat bizarre that trackers are being discussed in a thread about Neil Woodford! Is everyone [except me!] giving up on active management?

I am beginning to think is active management really worth the hassle? Today is a prime example.... EDIN this morning was 603p ended the day at 572p so lost 31p intraday.

The reason for this loss? The guy that manages the trust say he is leaving Invesco Perpetual so basically 31p of the share prices is due to a person managing the fund. This doesn't include losses incurred tomorrow as a result of this announcement. So how sharply will the trust fall as a result?

Similarly it seems you can obtain a cheap tee shirt for £1 sew three stripes over it and embroider Adidas on the front and charge £20 for it.

At least with the drip feed cheap tracker mode you are not paying for a name.

Does anyone here hold the ETF Ticker MIDD? It is an iShares FTSE 250 tracker.

dunstonh

I am beginning to think is active management really worth the hassle? Today is a prime example.... EDIN this morning was 603p ended the day at 572p so lost 31p intraday.

That isnt down to management.