Woodford Concerns

Malthusian

itwasntme001 wrote: »

The broker is interactive investor.

So still confusing why the dividends do not show up in the history.

Mystery solved. As per LHW.

itwasntme001

bowlhead99 wrote: »

The money won't have been used to pay the fund management fee, because the dividends are paid out of the fund after all the management fee has been paid by the fund for the relevant period. But feasibly you might have spent some of the dividend income paying your ISA investment platform management fees.

With many brokers the dividend payments are not on the 'transaction history' page because you are not doing a purchase transaction or a sales transaction. The income should be visible in your 'cash account' though (the income part of your cash account, if the broker splits between income and capital as some do).

My mum has a few thousand pounds worth of WEIF (Inc version) in her ISA and did receive quarterly dividends over that time period. You can see the history for all the share classes at https://woodfordfunds.com/funds/weif/income-history/

Are the dividends stated in this link net of the fund fee? I assume so as it states "net distribution" but wanted to double check.

itwasntme001

LHW99 wrote: »

Query it with them, if you get a nonsense reply, keep asking. I have had odd dividends missing, and then paid twice in one month, dividends paid late and a few other things. They have been better lately, but not absolutely perfect!

Will do thanks - good to know its not just me and that it seems likely an error on the part of II. Not sure how i would have missed around 2k in dividends but there you go. I guess i should check for all the other stocks that pay dividends, so annoying!

Malthusian

hamishdog wrote: »

• What is anyone's guess what this fund will be worth when the suspension is lifted? I assume if you could be bothered to value all the current investments you could work this out.
• Will there be a mad dash to get money out, how will "system" cope with a mad scramble?
• If you want to re balance how many people will be buying this fund - not too sure if I am joking?
• Will it ever recover?

The answer to all four questions is: it will never be lifted, once Woodford is done delaying the inevitable, the fund will wind up and return whatever cash can be realised to unitholders. There will therefore be no mad dash to get out, everyone will remain stuck in until the fund winds up.

The only way wind up can be avoided is if Woodford manages to sell the unlisted rubbish (bringing the fund back under the 10% maximum while still meeting outstanding withdrawal requests) and investors don't all rush for the exits as soon as the suspension is lifted, which takes an implausible leap of faith.

Usually when illiquid funds are wound down, they are wound down gradually over a period of several years, with distributions made periodically to unitholders. How many ps in the £ investors will get back will only be known once they've had their final distribution and the fund is no more.

As a general point, even if the fund wasn't going to wind up, it wouldn't matter how many people want to buy the fund. In any open-ended fund, like Woodford Equity Income, the manager creates and destroys shares at will, depending on inflows / outflows, while selling the fund's assets to meet net outflows.

Naturally if nobody wants to buy the fund and enough existing investors want to sell, the fund becomes unviable and has to be wound up.

talexuser

aberlyfid_2000 wrote: »

we can all wax lyrical here but the fact remains, woodford and his funds have been an unmitigated disaster

Yes, the 350% he made me in Perpetual over around 16 years was pathetic (with an insignificant amount of Barnett right at the end), and the 30% he made me over 3 years in his own fund was even worse.

arnoldy

My guess
1 - 50p in the £1 when it gets unsuspended next year


In which case some of the Hargreaves Landsdown Multi manager funds are in serious trouble. Some of these funds have 12%* invested in the gated Woodford fund and so you are looking at a 6% loss if you hold on the 50% train wreck at the end.


*It used to be even more but they sold down in their own funds whilst simultaneously pushing it on the poverty/wealth 50 list.


The Woodford - Hargreaves Landsdown - Link Solutions shenanigans has been somewhat of a nasty smell in the room.

talexuser

arnoldy wrote: »

The Woodford - Hargreaves Landsdown - Link Solutions shenanigans has been somewhat of a nasty smell in the room.

I agree, but count HL as the majority smell. Every fund manager can fail, so if DIY need to keep an eye on things and decide when the fees are no longer worth it - individual responsibility. Many unsophisticated investors have come to funds after a decade of their savings being decimated by central bank policies. They relied on online advice and star manager articles never thinking this result was on the cards, despite past performance is no etc etc etc. Many platforms and brokers raised concerns and even sell notices on Woodford a good year or more before it imploded. HL keeping it on the select list until the day it closed is criminal, and the financial links apparent now need more than a couple of bosses giving up their bonus this year.

itwasntme001

Does anyone know if i bought woodford income (INC) fund before the ex-div date but it settled 2 days after the ex-div date, would i be entitled to the dividend?

ColdIron

Look at your contract note, if the trade date was before ex date you are entitled to the dividend. Settlement date is unimportant in this respect

itwasntme001

ColdIron wrote: »

Look at your contract note, if the trade date was before ex date you are entitled to the dividend. Settlement date is unimportant in this respect

Yeh the trade date was before the ex-div date. Are you sure settlement is not important? I also read the record date is the most important, but no idea what it is for woodford.