Woodford to leave Invesco

redbuzzard

Glen_Clark wrote: »

I thought an ETF is Open Ended

So did I. Though they don't always hold the actual assets they are tracking, so you might have counterparty risks that you wouldn't have in a normal OEIC, active or passive. Not necessarily a problem but when something like Lehman can happen...

To be clear, I do have a couple of ETFs so I'm not trying to create panic!

SavingFish

Glen_Clark wrote: »

I thought an ETF is Open Ended

Er, I think I'm getting my acronyms mixed up, sorry :-S

TCA

Shaolin_Monkey wrote: »

I would think EDIN is still at a discount now or at least close to par, depending on how you want to value it:

Last I looked it was trading around 558p.

Still looks to be trading at around this price. 546p would have been a decent price to buy at this morning but interesting to note at the start of the year it was 486p. Hindsight is wonderful.

sabretoothtigger

A made up index sounds like an ETN not ETF. These are the ones that went to zero in 2008, but luckily AIG was bailed out so those people didnt lose it all but thats the risk.

Whats the premium on woodford related investment trusts. IF he leaves and market falls also it could be a buy as Im sure it'll benefit from his management even after he goes

Glen_Clark

Linton wrote: »

Yes but..

One of the claimed advantages of an index tracker is that it follows the market and so cannot perform unusually badly. If you look at the "index" the Vanguard fund follows you will see it's a privately commissioned artificial index based on undisclosed criteria designed to provide dividend income with good sector and share diversification. So its not clear that it bears any relationship to a real-world market.

Are such funds really trackers or are they simply automated investing where the manager's investment criteria and strategies are encapsulated in a computer program? ie a computerised active manager.

Does a little tracking error matter when its just as likely to produce small gains as small losses?
Or is this just overpaid fund managers criticizing their lower charging competitors?

moneylover

I read the comments included from Dunston about the funds that Woodford manages unlikely to be affected so much until after the manager changes whereas the Edinburgh Investment Trust was instantly affected. I hold quite a few investment trusts and have often read articles comparing the pros and cons of investment trusts versus funds. But never has it been mentioned that announcement of change of manager will affect investments trusts far more instantly than funds. Just to clarify, the funds are likely to go down far more slowly because there is no rush for anyone to decide whether to continue to hold until much nearer the time as there isn't a premium to nav to be taken into account as with the Edinburgh Investment Trust? Is that right? Maybe I had better buy funds in future on those occasions where funds and ITs are mirrored.
PS
I do presume though that the funds are affected somewhat as I have read that some of the share prices in Woodfords funds have dropped eg Serco which is a major holding

rothers

I'm new to all this investment game. What do people think of the IP distribution fund in light of Woodford going?

A_Flock_Of_Sheep

moneylover wrote: »

I read the comments included from Dunston about the funds that Woodford manages unlikely to be affected so much until after the manager changes whereas the Edinburgh Investment Trust was instantly affected. I hold quite a few investment trusts and have often read articles comparing the pros and cons of investment trusts versus funds. But never has it been mentioned that announcement of change of manager will affect investments trusts far more instantly than funds. Just to clarify, the funds are likely to go down far more slowly because there is no rush for anyone to decide whether to continue to hold until much nearer the time as there isn't a premium to nav to be taken into account as with the Edinburgh Investment Trust? Is that right? Maybe I had better buy funds in future on those occasions where funds and ITs are mirrored.
PS
I do presume though that the funds are affected somewhat as I have read that some of the share prices in Woodfords funds have dropped eg Serco which is a major holding

IP High Income was down 14p overnight - quite a drop. That is the Acc Version.

dunstonh

moneylover wrote: »

I read the comments included from Dunston about the funds that Woodford manages unlikely to be affected so much until after the manager changes whereas the Edinburgh Investment Trust was instantly affected. I hold quite a few investment trusts and have often read articles comparing the pros and cons of investment trusts versus funds. But never has it been mentioned that announcement of change of manager will affect investments trusts far more instantly than funds. Just to clarify, the funds are likely to go down far more slowly because there is no rush for anyone to decide whether to continue to hold until much nearer the time as there isn't a premium to nav to be taken into account as with the Edinburgh Investment Trust? Is that right? Maybe I had better buy funds in future on those occasions where funds and ITs are mirrored.
PS
I do presume though that the funds are affected somewhat as I have read that some of the share prices in Woodfords funds have dropped eg Serco which is a major holding

The IT can be sold at a premium or discount depending on supply and demand. Sentiment and opinion can affect the price. OEIC/UT is valued on the underlying assets. No sentiment or feeling is going to impact directly on the price. However, if there was a rush of people exiting the fund, then that could affect the price if sales were required to increase the cash holding. Especially if the inflows dried up.

The differences with ITs are often shown as positives and when things go well, they are. However, they can also be negatives and can work against you.

talexuser

A_Flock_Of_Sheep wrote: »

IP High Income was down 14p overnight - quite a drop. That is the Acc Version.

You think 2% is "quite a drop" for a basket of shares? :rotfl: My other income funds are 1% down overnight. I'm panicking! :rotfl: