Woodford to leave Invesco

Richard_DandR

talexuser wrote: »

Oh, you're talking about how they work out the price internally?

So they can reduce the value of the shares that investors own by 1% and pay you less than your shares are worth if they want to?

It does make sense though. If you held shares in an OEIC, you wouldn't want the fund creating new shares at bid as that would dilute your value. And you wouldn't want the fund redeeming shares at offer either.

sabretoothtigger

, since churning can easily eat up all your gains.

The opposite is more often the aim, benefit from trading can vastly outpace boring slow investment.
I think Buffet was determined that the companies owned were doing the trading and his side was just to manage finance between all of them.
[This does make alot of sense, add up all the big money business done in the world, by Coke or CAT or any big firm and it quickly makes shares a minuscule inconsequential side market to real money trade. Bonds make shares look small also, etc]

He bought and sold billions of Intel within only a year or so, one of his deputies favoured it before realising Intel had problems with declining market share I think.
I think Woodford or his replacement would do similar if it was profitable but not trading deliberately but as a necessity

melbury

Isn't Neil Woodford going to start up his own investment business? If that is the case, then presumably he will be wanting people to invest with him.

However, there are always new rising stars coming along to replace the existing ones:)

gadgetmind

sabretoothtigger wrote: »

The opposite is more often the aim, benefit from trading can vastly outpace boring slow investment.

I'd appreciate it if you could reference the peer reviewed studies that might substantiate that claim.

LittleJo

Hi
Invesco have applied dilution to Woodford Funds.
Jo

grizzly1911

LittleJo wrote: »

Hi
Invesco have applied dilution to Woodford Funds.
Jo

Any idea how much?

A switch may still prove to be beneficial longer term as performance has been relatively poor this year even allowing for the defensive,consistent approach.

talexuser

LittleJo wrote: »

Hi
Invesco have applied dilution to Woodford Funds.
Jo

FT says "Invesco has implemented a “dilution adjustment” to the funds’ pricing, ensuring that the price unit holders receive for their shares corresponds to the prices at which the portfolio holdings are sold."

The personal finance editor says "It is not a charge".

So they are trying to protect the performance figures from redemptions?

Aletank

Does this effect the Edinburgh Investment Trust in any way ?

joerugby

talexuser wrote: »

FT says "Invesco has implemented a “dilution adjustment” to the funds’ pricing, ensuring that the price unit holders receive for their shares corresponds to the prices at which the portfolio holdings are sold."

The personal finance editor says "It is not a charge".

So they are trying to protect the performance figures from redemptions?

I read that news in the FT last Saturday.

It could help explain the 2% fall in value last Thursday which was a much greater movement than the approx 0.5% fall experienced by the rest of the UK equity income sector

Rollinghome

joerugby wrote: »

I read that news in the FT last Saturday.

It could help explain the 2% fall in value last Thursday which was a much greater movement than the approx 0.5% fall experienced by the rest of the UK equity income sector

On the charts I looked at they immediately dropped the price by 2% as the FTSE rose by 0.5% on Wednesday the 16th, which was the next valuation after the announcement, presumably in anticipation of the rush for the exits.

Does this effect the Edinburgh Investment Trust in any way ?

Afraid so, down about 7.5% last time I looked.