Woodford to leave Invesco

TCA

gadgetmind wrote: »

Blimey, you're all making me look like Mr Impetuous!

Not at all. I'm just Mr Procrastinator. I've hatched a plan to buy a large chunk of income-producing ITs (with decent capital growth record) to run as a separate portfolio but keep putting off purchase. On my list CTY, TMPL, PLI, LWI, LWDB and SOI & AAIF for some Asian aspect and perhaps JEMI. I like MYI but not at the current premium. EDIN wasn't on my shopping list but thinking about it now.

Started reading about private equity trusts like JZCP for some direct US allocation and then SPDR Dividend Aristocrat ETFs covering US, Europe, UK and EM and these have managed to divert my attention yet again. Going round in circles!

A_Flock_Of_Sheep

TCA wrote: »

Not at all. I'm just Mr Procrastinator. I've hatched a plan to buy a large chunk of income-producing ITs (with decent capital growth record) to run as a separate portfolio but keep putting off purchase. On my list CTY, TMPL, PLI, LWI, LWDB and SOI & AAIF for some Asian aspect and perhaps JEMI. I like MYI but not at the current premium. EDIN wasn't on my shopping list but thinking about it now.

Started reading about private equity trusts like JZCP for some direct US allocation and then SPDR Dividend Aristocrat ETFs covering US, Europe, UK and EM and these have managed to divert my attention yet again. Going round in circles!

Most if not all of those IT's are on premiums.

TCA

Yes, which is probably why I became interested in EDIN. SOI is on a small premium and close to my buying price. Missed the boat a bit on AAIF but will likely buy that if the premium narrows a little. Of the rest only PLI is at a discount. Premiums aside I'm wary that they're all close to 52 week highs, if not all-time highs. I'm looking to invest around a third of my wealth so it's a big chunk and small percentages add up. But getting fidgety sitting in cash earning 2% gross and can't be bothered drip feeding.

bigadaj

gadgetmind wrote: »

Blimey, you're all making me look like Mr Impetuous!

In my defence, I'd just given a mild trim to a holding in European property that was up 60% over purchase so had a fair few £k in cash and and similar under-allocation to UK equity income.

I'm probably overweight in equity income but I like the straightforward nature of valuing a share on what it makes or more correctly pays out.

Talking of European property there seem to be some its on crazy discounts in this sector, no doubt because actual current value is difficult to determine but thinking of having a small punt, as I'm overweight in cash also so probably need some more spice, for good or bad!

gadgetmind

bigadaj wrote: »

Talking of European property there seem to be some its on crazy discounts in this sector

Really, still?

I've been reducing because discounts have narrowed and i was getting overweight but it is a pretty diverse sector.

Which ITs/REITs are you looking at?

talexuser

After that 2% drop, HI is now 3% up from that drop point, which goes to prove... nothing!

gadgetmind

There is no reason why a large open-ended fund should move after news regards manager change because the price is always based on the NAV. Something holding illiquid assets could move downwards if any people headed for the exit (which is why you don't use open-ended for such things) but HI holds mainly large blue chips.

Rollinghome

gadgetmind wrote: »

There is no reason why a large open-ended fund should move after news regards manager change because the price is always based on the NAV.

While the price of UTs and OEICs is "based" on the NAV that isn't to say that the price is directly tied to the NAV. If the managers see fit, such as when they anticipate a large outflow of funds, they can change the basis of pricing.

For anyone confused about what it means when a fund moves to a "bid basis" in the case of dual-priced funds or applies a "dilution adjustment" in the case of single-priced funds HL have a useful guide: http://www.hl.co.uk/__data/assets/pdf_file/0016/32542/The_HL_Guide_to_Fund_Prices,_Savings_and_Yields.pdf

You'll also find details of how it works in the prospectus for the specific fund.

For example Invesco Perpetual say this on fund pricing :

"The total proceeds of sale of a Sub Fund’s investments may be less than, and the total purchase price of a Sub Fund’s investments may be more than, the mid market value used in calculating the share price for example, due to dealing charges, or through dealing at prices other than the mid market price.

Under certain circumstances (for example, large volumes of deals) this may have an adverse effect on the shareholders’ interest in a Sub Fund. In order to mitigate this effect, called ‚dilution‛, the Manager has the power to apply a dilution adjustment‛, as defined in the FSA Rules on the issue and/or redemption of shares in a Sub Fund."


A graph showing how for a period L&G were moving the price of their High Income fund, often several times within a week.

DaveTheMus

Woodford sold Vodafone at 160p.......think that might have something to do with why he left....IMO, he's over-rated, like most other fund managers. The only fund I'm involved with is Fundsmith, Terry Smith is first class, only my opinion though.

planteria

he could have held on to Vodafone profitably, that is clear: both in terms of capital growth and substantial dividends. however, the track record of NW has been excellent.

personally, i quite like to dabble at large cap dividend payers myself, and then use funds for more specialist areas that i think will do well.