New Woodford Fund

le_loup

I've decided to withdraw.


The original scheme at £200m with a possibility of £500m looked very interesting. At £800m for a collection of very specialist micro organisations is not what I signed up to. It will take so many years to invest in appropriate companies, meanwhile we are left with an income portfolio that doesn't pay any income. What's the point? I have income producing investments.


Looks to me like greed has taken over and a small but intense project has turned into a behemoth! No one will miss what I was going to put in but what seemed good now seems wrong.

TCA

le_loup wrote: »

At £800m for a collection of very specialist micro organisations is not what I signed up to.

I'm having another think. I'll probably still go ahead but I can't help but wonder how they'll deploy all this extra cash. Will they just keep as cash or a cash equivalent, or will they allocate a far greater proportion to mature companies? You'd think it would take a lot longer to buy up the 75% allocation for early-stage and early-growth companies. Is it now the Woodford Very Patient Capital Trust?

westy22

I have contacted my broker and halved my original order for PCT and will now use the remaining money to buy into the Miton Microcap Trust as I think that Miton will invest the money far quicker than PCT will.

jimjames

The whole situation sounds very familiar to the China Special situations trust launch.

Famous manager, over subscribed, trust goes to an immediate premium and more shares issued. Trust then goes to a discount, amplifying losses for anyone who bought in at the launch.

I did ok buying FCSS after launch when it dropped to 80p so I might well add this but I'll be waiting until it is invested and hopefully at a discount.

mike88

There's me who thought we were mainly investors for the long term on here. We have to exercise some patience.

While Woodford's aim is to invest in micro companies, in the short term he will be investing into regular large cap dividend producers apart from a ready list of new companies. Sensible or what. There's no hurry to invest the lot in start-ups unless and until good prospects appear. That's one of the reasons I like this fund.

The fund is still closed end, even if the end is bigger than was first envisaged.

Smithy101

Bit late in the day in posting this but it might be interesting to some:

He's done a question and answer session on the Which Investment Trust website

http://whichinvestmenttrust.com/woodford-patient-capital-answer-our-readers-questions/

Rollinghome

mike88 wrote: »

There's me who thought we were mainly investors for the long term on here. We have to exercise some patience.

Perhaps it illustrates that as much as investors may like the idea of of patience there may not be much around if there aren't signs of the trust performing: regardless of initial intentions. Would be a concern if many found themselves with more shares than they intended because, for whatever reason, they believed, fresh from the Royal Mail IPO, that their application would be scaled back. Despite the noises, I can't remember any applications for an IT being scaled back.

The real question is if it ends up four times the original target size, will there be enough of those early-stage company gems around or from necessity will they form only a tiny part of the portfolio.

More positively, I think it would be wrong to draw too many comparisons with the Fidelity CSS launch. That was a cynical exercise to extract value from the Bolton reputation before he retired. In contrast, Woodford Investment Management is a new enterprise that will want to build on its reputation and letting down investors isn't the way to do that.

Even so, could be that jimjames' approach of hoping to pick up shares once they move to discount is the more rewarding way to have patience rewarded.

Archi_Bald

Rollinghome wrote: »

That was a cynical exercise to extract value from the Bolton reputation before he retired.

Woodford is 55. Who says he is not about to retire?

TCA

An article on Trustnet about the launch expansion:

http://www.trustnet.com/News/596454/will-woodfords-new-trust-be-held-back-if-it-launches-at-800m/

collingbone614

Can anyone tell me whether this fund will allow monthly purchases?

I've never owned a unit trust type of fund before. Once I've made my initial purchase, I would be looking to make a monthly buy of £100 or so. Small fry, I know.