Woodford Equity Income

bostonerimus

sorcerer wrote: »

I try to do both my Pensions are focused entirely on Growth stocks, with the view to try grow the money as fast as possible. However my ISA is focused entirely on Income, with the view to live off this money until the Pensions can kick in 10-15 years time.


I realise this is not the "Normal" thing that people do, but it works for me from a psychological point of view. This balance gives me a 50/50 break between high risk investments and low risk investments, and a I wear different hats, so to speak depending if I am investing for my ISA or Pensions.

The 8% yielding product you once owned was probably pretty risky and I would not class either Woodford Equity Income or Merchant's Trust as low risk. In fact Merchant's Trust does not inspire me much.....high fees, poor returns over recent years. You would be buying at a discount, but I the trend has been for that to increase over the last few years.

bostonerimus

sorcerer wrote: »

Perhaps risk is not the right word, I am referring to volatility , off course any investment has risk. It's a case of how much volatility can my little brain cope with.

Volatility ie standard deviation of price etc is used as a measure of risk

sorcerer

ok what I am thinking now instead of buying Merchants to go for MedicX instead, but only half of it, the other half I would spread across my other funds I already hold. I have followed them for a few years now, and I see their NAV premium has dropped a lot. So might be worth a bit of a punt.

bostonerimus

MedicX looks really risky. Very high Premium/discount range in the last year, it's certainly cheaper than it was last year, but a performance fee and ongoing charge of almost 4% and pretty terrible performance over the last 5 years scares me.

TBC15

On going charge 4% :rotfl::

What do these people buy?:(

firestone

bostonerimus wrote: »

MedicX looks really risky. Very high Premium/discount range in the last year, it's certainly cheaper than it was last year, but a performance fee and ongoing charge of almost 4% and pretty terrible performance over the last 5 years scares me.

think it may be the yield that appeals to them

bostonerimus

firestone wrote: »

think it may be the yield that appeals to them

If you like yield look at this US closed end fund, PHK, its 12.4%. I have a friend that bought it in September because the premium had fallen so much. I imagine there are similar things in the UK. Too exciting for me though.

https://www.cefconnect.com/fund/PHK

firestone

bostonerimus wrote: »

If you like yield look at this US closed end fund, PHK, its 12.4%. I have a friend that bought it in September because the premium had fallen so much. I imagine there are similar things in the UK. Too exciting for me though.

https://www.cefconnect.com/fund/PHK

think the premium may make them blink!

Linton

bostonerimus wrote: »

MedicX looks really risky. Very high Premium/discount range in the last year, it's certainly cheaper than it was last year, but a performance fee and ongoing charge of almost 4% and pretty terrible performance over the last 5 years scares me.

Medicx owns property, it's a landlord. What do you think the charges should be? A property index tracker would be paying the same charges, just via one or two levels of indirection.

For the same reason the NAV will behave oddly as properties arent continuously revalued.

bostonerimus

Linton wrote: »

Medicx owns property, it's a landlord. What do you think the charges should be? A property index tracker would be paying the same charges, just via one or two levels of indirection.

For the same reason the NAV will behave oddly as properties arent continuously revalued.

Sorry my US bias again. I'm use to US REITs with expenses of say 0.12% and no performance fee and wouldn't touch something with MedicX charges with a bargepole.....whatever the justification for those charges. The small number of rental properties and the fact that it' isn't a more diversified property fund would make me nervous. The recent performance of the fund shows that it isn't doing enough to over come its fees.