Woodford Equity income

bowlhead99

Linton wrote: »

perhaps latching onto the popularity of celebrity fund managers could be a marketing ploy that is difficult to resist.

The old "nobody every got fired for buying IBM" technique.

Another factor may be that in this case Woodford offers HL customers an 'exclusive' lower-management-fee class of shares in exchange for them aiming to push X amount of customers towards Woodford's funds on the HL platform. And the exclusive discount helps HL's painfully high percentage-based platform fee not seem so high to the investor (because of getting access to the fund at a lower headline rate than they'd get elsewhere, and maybe not too bad when both elements of fee are taken together with the HL route Vs HL rivals 'route) . So it's a win win for HL and Woodford in terms of day to day fund sales.

With that structure in place (ie HL rate Woodford highly from his long term track record - and have secured access to his fund at 0.6% instead of usual 0.7% or whatever) then it's not at all surprising that when they are building an equity income fund-of-funds they will have his fund (at 0.6%) as one of the building blocks, if they're also using other funds at 0.7% as other building blocks.

Alexland

I rate Mark Dampier at HL but when I actually dig through the HL suggested Wealth 150 there is little more than hype and fluff and I am left wondering how much (if not all) of it has been selected for HL commercial benefit.

talexuser

Alexland wrote: »

wondering how much (if not all) of it has been selected for HL commercial benefit.

I would say all. Fundsmith have described how they refuse to give HL a discount and thus never appear in the 150, despite being a very popular fund.

ArmyDilllo

Thanks,

I am aware there are a whole muddle of them; "LON:RBTX", but I am preparing to move to a tech inv. trust instead because of the ETF issues.
Not sure on timings for that yet.

If I lose my investment, I lose my investment.
If a 'Wealth Manager' loses my investment, he loses my investment and then takes his % of what's left.

I agree and the shares I bought were absolutely taken as "punts".
I use a 'pyramid' model for investing and this was a very small proportion of my whole portfolio for which I felt there was a justified risk/reward element.
The peak of my pyramid.

I have been lucky with quick in/out investments, in just the same way that gamblers are lucky when they win at the races.
Except with BP; I couldn't see a way I could lose with them as, when I invested, they were £3.28 (up from £3.00) and they were facing a serious situation or outside support if they had not risen.
OPEC were holding the price of oil down to try and wreck US shale and had almost run out of the reserves they'd put into that.
I was lucky on timing as I was anticipating a return eluding me for a few more years yet.
A Saudi Regime change helped.
Now I'm getting just shy of 7% div/year, plus the capital increase.
However that capital increase is nearly spent and the longer I leave it, the less it amounts to.
So I will start banking that when they go up again.
If it should reach £6.00, I will be long gone.
I have other vehicles which can provide better interest.

[EDIT: I measure my own financial year from July to June.
So far this year the 'wealth managed' portion of my portfolio has grown by just 1.54%
The portion I manage myself has grown 11.16%.
It has been a bad period and I have probably taken a much more 'active' approach but, for the last five months and at the level of risk I am prepared to accept, I am more than happy with that.
If I can keep that up for the whole year it'll be quite a bit beyond my targets.]

Rheumatoid

I'm out today.

chrisgg

I've never held Woodford funds, as I got into investment just over a year ago.

As I've commented on a previous thread regarding Woodford, my main concern is not his underperformance but the liquidity risk he's taking on when it comes to many of the small caps within the fund.His performance woes of late are ones he's suffered before - and his long term track record is nothing short of exceptional.

But let's focus on what Woodford currently holds and what may happen in future, rather than his recent performance. I recently saw some analysis written by Woodford themselves, stating how they are reducing overseas income streams in favour of companies who earn their money in £. Woodford sees value in domestic cyclicals with much of the globally focused FTSE 100 over valued.

We know that Woodford is bullish on the prospects of Brexit and British innovation. If he's right, GBP will strengthen along with his fund, while many of his equity income peers, who are currently focusing on the likes of Diageo, RB, Unilever etc may suffer along with those holding UK equity trackers. Anyone tempted to buy the fund as a hedge? It seems reduced UK exposure due to Brexit concerns is common amongst posters here.

digannio

Woodford's Patient Capital Trust is having a tricky time of it, down to 84p with some having bought at 120p. It's on a near 8% discount. What irks a lot of them who comment on the Woodford blog is that they've ended up with more than 17% of their investment lumped into one biotech company that has got massive doubts surrounding it.
Quite a few seem to be jumping ship despite the 'think long-term' pleas of the Woodford team. The Trust's three-year anniversary arrives in April.
Is it all just short-term noise or something more?

takesyourchances

chrisgg wrote: »

I've never held Woodford funds, as I got into investment just over a year ago.

As I've commented on a previous thread regarding Woodford, my main concern is not his underperformance but the liquidity risk he's taking on when it comes to many of the small caps within the fund.His performance woes of late are ones he's suffered before - and his long term track record is nothing short of exceptional.

But let's focus on what Woodford currently holds and what may happen in future, rather than his recent performance. I recently saw some analysis written by Woodford themselves, stating how they are reducing overseas income streams in favour of companies who earn their money in £. Woodford sees value in domestic cyclicals with much of the globally focused FTSE 100 over valued.

We know that Woodford is bullish on the prospects of Brexit and British innovation. If he's right, GBP will strengthen along with his fund, while many of his equity income peers, who are currently focusing on the likes of Diageo, RB, Unilever etc may suffer along with those holding UK equity trackers. Anyone tempted to buy the fund as a hedge? It seems reduced UK exposure due to Brexit concerns is common amongst posters here.

I am not one to jump in and out of funds once the first bump happens. I am keeping the Woodford fund within my allocation, it is still only in the early stages of an investing timescale. It will be interesting post Brexit how the fund does and in the following years after Brexit with a longer term view.

If I sold out of Woodford and put my funds into another UK fund and it dipped, do I do the same again.

It is too short term for me to decide to sell out of it, others may not agree, but I topped up recently on Woodford on this dip, but it is part of my allocation still. I have other UK holdings as well, so I am happy to hold.

Rheumatoid

Rheumatoid wrote: »

I'm out today.

Phew!!!!!



................

itwasntme001

takesyourchances wrote: »

I am not one to jump in and out of funds once the first bump happens. I am keeping the Woodford fund within my allocation, it is still only in the early stages of an investing timescale. It will be interesting post Brexit how the fund does and in the following years after Brexit with a longer term view.

If I sold out of Woodford and put my funds into another UK fund and it dipped, do I do the same again.

It is too short term for me to decide to sell out of it, others may not agree, but I topped up recently on Woodford on this dip, but it is part of my allocation still. I have other UK holdings as well, so I am happy to hold.

I bet you wish you got out back when you posted this! I think the writing was on the wall with numerous warnings. Hopefully it was not a large holding for you.