New Woodford Equity Income fund

mike88

I'm taking 20% out of my IP High Income holding meaning my asset allocation will remain unchanged..

[Deleted User]

Hi,

there's not much talk now about future performance of IP Income and High Income funds, are many switching from IP to the new fund.

I've a nice profit on the Income fund and wouldn't like to lose it all.

talexuser

Can anybody predict the future? A significant number have jumped, I haven't yet, but have rebalanced into alternatives.

Mark Barnett is the new manager, he has a better recent track record than Woodford because managing funds with rather smaller companies, which have had somewhat of a bull run in the last couple of years.

In fact Woodford has underperformed the last couple of years since mistimed the coming correction and has been too defensive. If the coming correction is big then his punts will come off again via Perpetual, since his recent performance has been bolstered by being defensive at the time of the credit crunch, ie shunning banks etc (for which he was much criticised just before the crunch).

Maybe jumping the Perpetual ship has something to do with the fact the funds are now too big to outperform? Or the recent fine for not declaring the derivatives used in line with the rules? Only the insiders know.

talexuser

ps Hargreaves have just advertised a reduced 0.6% TER for the Woodford fund. Any other platforms with discounts?

SnowMan

talexuser wrote: »

ps Hargreaves have just advertised a reduced 0.6% TER for the Woodford fund. Any other platforms with discounts?

Doesn't appear to be

http://langcatfinancial.co.uk/2014/05/woodford-fees-part-second/

There is a link in that article to show which platforms have which share classes

From our dimly-lit cave, though, the interplay of lower fund charge is only enabling HL (in this case; we’ll see about others) to keep its platform charge above the market.

melbury

I am interested in investing a bit in this fund.

I currently pay a very small monthly amount into an investment trust (which only uses a very small amount of my annual ISA allowance).

Is it possible to invest in two different share ISA's in a year, or can it only be one?

Out of interest, is this an investment trust or a unit trust? I have a share certificate for Perpetual Income & Growth that NW set up years ago.

Archi_Bald

You can only put new money into one S&S ISA each year. Can't you buy the Woodford Trust through your existing provider?

melbury

Is it an investment trust so that you can have a share certificate?

ColdIron

No it's an OEIC/unit trust

talexuser

Whether you want to jump in at the start depends if you are a bull or a bear I would theorise.

A similar experience was with William Littlewood and Jupiter Income. I had a couple of peps in this in the early 90s, and the performance for a UK income fund was stupendous, I quadrupled my money over the years (easily beating my Perpetual High Income during that time). He then left burnt out and later managed a private hedge fund for a while, then came back to Artemis Strategic Assets which I bought as a small punt of the portfolio based purely on his gains for me in the past. It has been a lacklustre performance (being beaten by one of my bond funds) because he is very bearish about QE and sees nothing but trouble in the future. I'm probably going to jump ship and will be proved wrong if a large correction in the market is soon. Woodford has the same defensive contrarian view about current market levels.

A similar story is with Anthony Bolton and his fantastic past Far East performance, until he opened his China fund to great fanfare and lots of intermediary hype which turned out after the fact to be a damp squib.

So I'm a bit wary about going straight in JUST based on the manager but could well be wrong about that this time round