New Woodford Fund

masonic

collingbone614 wrote: »

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.

It's not possible to invest directly into the Investment Trust, so you would have to do it via a broker/platform and you would pay a dealing charge for each monthly purchase. The cheapest of these would cost £1.50, which is 1.5% of your proposed monthly investment. But you could be pay anywhere from £5-£12 per month depending on your platform/broker. In which case, you'd be better off saving up and buying a lump sum at less regular intervals.

vm2pensioner

collingbone614 wrote: »

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.

Actually, the fund is an investment trust, not a unit trust, and the price of the share can be at a premium or a discount to its net asset value.

poppet-chops

Can anyone advise me which provider to use to buy into this new Neil Woodford fund, I've been looking at either Fidelity or Cavendish, either of these better than the other or does anyone know of anyone else who's better please ? I've only got experience with Invesco Perpetual.

bowlhead99

Any broker will do. Just search the forums for compare platforms, platform comparison, cheapest s&s ISA provider etc.

You have probably missed the cut-off to buy in at launch price, so you can just buy on the stockmarket through any broker when it starts trading, shortly.

https://www.x-o.co.uk are a well regarded execution-only broker, about 5 or 6 pounds a trade.

westy22

bowlhead99 wrote: »

You have probably missed the cut-off to buy in at launch price, so you can just buy on the stockmarket through any broker when it starts trading, shortly.

Closing date has now been extended to 17 April by many (but not all) brokers.

dunroving

Just out of interest ... so on 17th April there will be all that cash sitting in a holding pattern, and then the Trust will "open".

What happens then? Will the Trust Managers have a wodge of companies just waiting for the money to be paid (invested) in them, will the money gradually trickle into companies over an extended period of weeks/months ... what?

And if a lot of the money is invested in small businesses, how will the value of the Trust rise and fall in the early periods of investment?

I assume a lot of the movement in the initial period will be due mainly to investor sentiment (people wanting to buy/sell), will it?

JohnRo

Initially the money will go into larger companies and the patient capital part of the enterprise will be phased in over a period of time.

He did an interview for CSD about it, worth a watch if you're interested.

https://www.charles-stanley-direct.co.uk/News_Features_Research/Exclusive_Interview_With_Neil_Woodford

redbuzzard

dunroving wrote: »

I assume a lot of the movement in the initial period will be due mainly to investor sentiment (people wanting to buy/sell), will it?

That's quite possible, as it's closed ended. If there is a scale back then it might even go to a premium. I thought that sounded likely at £200m, but £800m is quite sizeable for an IT I think so it could go the other way when the novelty has worn off!

I've applied for some at launch so if it goes to a discount I might have to be "patient", though it isn't enough to sink my boat. Of course if you think it will go discounted early on you might as well buy in the market rather than go for the issue.

TBH, I'm hoping that the NAV will hold up and as it's close ended the Woodford label will be worth a small premium. What happens after that will depend on the early performance and how good the story is.

In other words, it's a bit of a flutter. But he's done well for me so far, and I guess others will feel the same for now.

steelbru

Final thoughts on this ?

Have applied for a few thousand, but am debating with myself whether to cancel my application and just buy on open market as it may well go immediately to a discount now that they've upped the limit so significantly.

What's others doing ?

davide691

I just cancelled my order. Issue size increase was the decider, with all that inevitably means for loss of strategic focus and near-term performance drag from higher cash holdings. But also concerned about whether it makes sense to put so much faith in Woodford himself (Bolton-type risk), plus age not on his side given I want to buy and hold this probably for the rest of my life. I’ll look elsewhere for the 5% of my SIPP I want to invest in small cap/private equity type stuff