Woodford Equity income

takesyourchances

With the CF Woodford Fund taking a drip in recent months, are you still investing in it?

I see Woodford added some bank holdings recently, with the dip, personally I have topped up some on it. I see it went down a bit again over the last few days and I added a bit more in. As I am taking a long term view, I added some more to it.

Interested on thoughts. I hold this as part of my income dividend based portfolio and going to keep it as part of my UK holdings.

mike88

This is by far the worst performing UK Equity Income Fund I hold. I will probably ditch my entire holding when I come to review my portfolio in the next couple of weeks. Buying Equity Funds on dips is not a good strategy in my view as such funds should be more stable than individual shares with far lower volatility. I buy individual shares and volatile funds in emerging markets on dips but not equity income funds.

Alexland

Desperate fund managers make poor decisions under pressure and compound losses.

takesyourchances

mike88 wrote: »

This is by far the worst performing UK Equity Income Fund I hold. I will probably ditch my entire holding when I come to review my portfolio in the next couple of weeks. Buying Equity Funds on dips is not a good strategy in my view as such funds should be more stable than individual shares with far lower volatility. I buy individual shares and volatile funds in emerging markets on dips but not equity income funds.

I understand what you mean Mike, I also hold Marlborough Multi Cap Income and City of London IT.

Certainly Woodford has not done well this year, but even from his fund started it is really short term to now, so that is why I am prepared to give it a chance still and keep it within my asset allocation.

I understand your point of income funds are not meant to be volatile, my reason for topping up was I was prepared to buy it when it was more expensive. I am going to give it a go still, rather than judge on this year. I would like to see what the next 5 years or so does and post Brexit and take the long term view as who know what the next fund will do next year and so on.

Just interested in different views on it and with Woodford adding large bank holdings recently.

takesyourchances

Alexland wrote: »

Desperate fund managers make poor decisions under pressure and compound losses.

Thats true as well, I guess time will tell. But is it too early to write it off, afterall the fund itself is still in the short term age.

ArmyDilllo

@frugal90

Sorry, I seem to have missed the follow-up notifications on this thread until today.
No idea why, but haven't been tied up since anyway.

I did remove my Woodford investments just after posting.
I placed the cash with a number of other funds and share options which I have since narrowed down as follows:-

BP Plc (I already held a sizeable chunk of my portfolio and they fell again shortly after posting - made 7% on the dividend and around 15% on the trading value).

Artemis Global Emerging Markets (17%)

Invesco Perpetual UK Growth (32% since I first bought 18 months ago)

Berkshire Hathaway (not doing as well, about 8% over the period)

I Shares IV Plc (ETF bought one month ago now +3%.., has been higher)

I also had traded shares in BooHoo (5% in one month); Bodycote (5% in one month); UKOG (several times with different amounts over the last three months with very large profits and two small losses, where I lost faith).

I also bought into Blue Prism in April at £7.00 - they were £16.00 earlier this morning.

I frequently meet with Wealth Managers as I'd like to find one who can grow my portfolio for me and free up my time.
I have still not found one I feel is as focussed as me and not just after my wealth to increase their own.
However, without exception, each one I've met this year has advised me against all of these investments (except the Invesco one).
I have no evidence but suspect a possible commission system at work which encourages them to point me towards funds which pay them more.

I hold other funds but they were selected before I started choosing my own.
It's worth mentioning that they have not performed as well as mine (less than 50%).
My own 'strategy' is probably more aggressive than I would normally like but I did them because of timing and gut-feeling.
I am not as confident now and have been more protective since (except with BP where I feel there is more to be had in the longer term).
The IShares ETF I will keep riding for now but I'm also eyeing a 'safer' way to switch while keeping that money invested with the same sector, in which I see a big long-term win.

I'm no expert and any successes I've had I still regard as more luck than judgement.
Another reason I'd like a competent professional doing it for me - so I can sleep at night.

bowlhead99

ArmyDilllo wrote: »

I frequently meet with Wealth Managers as I'd like to find one who can grow my portfolio for me and free up my time.
I have still not found one I feel is not simply after my wealth to increase their own.

However, without exception, each one I've met this year has advised me against all of these investments (except the Invesco one).

Generally when you entrust your wealth to be managed by professionals they won't suggest you use a chunk of it for a little short term punt on Boohoo or Bodycote or even BP unless you are proper crazy high net worth giving them free reign to take punts. Even if you ask them down the pub what they think of a share, if they're seriously trying to convey their professionalism they will likely do that by advising you against that and instead using collective investment schemes where BP or Bodycote would be only one of many holdings rather than being bought on its own.

I'm no expert and any successes I've had I still regard as more luck than judgement.

No doubt

For example, you know that the "I Shares IV Plc (ETF bought recently now +3%.., has been higher)" is just an umbrella issuer for a whole load of vastly different ETFs with massively different strategies, right?

Clearly you bought one or other of those ETFs and not all of them. Do you even remember which one? It does sound like a very mixed bag of stuff you bought in replacement of your Woodford fund and you'd struggle to find a wealth manager or IFA to do that sort of thing, unless -as you surmise - they were just a chancer looking to increase their own wealth rather than yours.

Another reason I'd like a competent professional doing it for me.

If the professional lost you some money because a call went the wrong way, and then he said, "well yes sir I know the strategy was more aggressive than you'd like, but I did it 'because of timing'..." You would fire him and probably sue if you didn't get all your money back through the regulated complaints process.

bigadaj

bowlhead99 wrote: »

Generally when you entrust your wealth to be managed by professionals they won't suggest you use a chunk of it for a little short term punt on Boohoo or Bodycote or even BP unless you are proper crazy high net worth giving them free reign to take punts. Even if you ask them down the pub what they think of a share, if they're seriously trying to convey their professionalism they will likely do that by advising you against that and instead using collective investment schemes where BP or Bodycote would be only one of many holdings rather than being bought on its own. No doubt

For example, you know that the "I Shares IV Plc (ETF bought recently now +3%.., has been higher)" is just an umbrella issuer for a whole load of vastly different ETFs with massively different strategies, right?

Clearly you bought one or other of those ETFs and not all of them. Do you even remember which one? It does sound like a very mixed bag of stuff you bought in replacement of your Woodford fund and you'd struggle to find a wealth manager or IFA to do that sort of thing, unless -as you surmise - they were just a chancer looking to increase their own wealth rather than yours.

If the professional lost you some money because a call went the wrong way, and then he said, "well yes sir I know the strategy was more aggressive than you'd like, but I did it 'because of timing'..." You would fire him and probably sue if you didn't get all your money back through the regulated complaints process.

Harsh but fair.

interest_Ted

Recently received a mailing from HL about their 'HL multi manager fund'. The mailing spoke about Artemis and Jupiter as being part of their fund. Out of curiosity, I checked what other funds they include. Surprised to find that about 10% of the HL muilti manager fund is invested in this Woodford fund. Out of the 85 funds in this sector, Woodford ranks, (using my calculations) as number 84. Just emphasises how wary one should be about these fund of funds.
Ted

Linton

interest_Ted wrote: »

Recently received a mailing from HL about their 'HL multi manager fund'. The mailing spoke about Artemis and Jupiter as being part of their fund. Out of curiosity, I checked what other funds they include. Surprised to find that about 10% of the HL muilti manager fund is invested in this Woodford fund. Out of the 85 funds in this sector, Woodford ranks, (using my calculations) as number 84. Just emphasises how wary one should be about these fund of funds.
Ted

Funds of funds, just like individual portfolios, should be based and assessed on the overall asset allocation rather than recent performance figures from individual component funds. Perhaps not investing in the Woodford fund would leave an unjustifiable gap.

However a Wodford-shaped gap would be a bit surprising so perhaps latching onto the popularity of celebrity fund managers could be a marketing ploy that is difficult to resist.