New Woodford Equity Income fund

blizeH

I've got accounts with both HL and Charles Stanley and the amount of emails and paperwork I've received about this fund is insane! I'm actually tempted to get in, but his previous funds haven't performed very well at all compared to some Marlborough and Shroeder funds I have... different sectors, but still UK stocks.

I'm considering sticking to my original plan of just keeping with Vanguard though.

talexuser

I have been told you can switch in on Fundsnetwork now, the money will be held till the 19th in some independant account and then units will be bought at the start price of £1.

Now if Perpetual High Income and Income have had several billions withdrawn and with all the other corresponding hype around - if Woodford spends all this money at once, will he not drive up the price of the shares he will be buying with all that money?

And afterwards will the market then decide they are overpriced and have a little correction?

So the price may go below the £1 during the first weeks (add in when the first tranche of fees are taken)?

Just wondering what people think of this theory, since some funds start graphs often have a dip before they start to grow? or will the spread of dividends help for the acc people?

le_loup

Apparently he is in negotiations with IP to swap some shares to save market fluctuations.

ChesterDog

I am sure he will have covered all his bases in this and other respects. He's been around the block more than a few times after all.

gadgetmind

Ah yes, the delicate sound of the hot money stampeding from place to place!

talexuser

le_loup wrote: »

Apparently he is in negotiations with IP to swap some shares to save market fluctuations.

Ah, that seems mutually beneficial if Perpetual have outflows to finance. Makes you wonder if they are the same shares is it worth swapping Inv to Wood in the short term?

Maybe for the charges, Y class Hi Inc is now 0.87% (as opposed to the Wood 0.75) plus the 0.25% if you are with Cavendish or Stanley.

le_loup

talexuser wrote: »

Makes you wonder if they are the same shares is it worth swapping Inv to Wood in the short term?

Good thought. But, of course, some of the obvious favourites in pharma and tobacco will be on his new list.