Woodford Concerns

masonic

londoninvestor wrote: »

Given the undesirability of trying to unload the whole portfolio, engaging a new investment manager might be more likely than a winding up - either if Woodford decides to jack in the whole game now, or if the board gets assertive. [Not sure if they have shown a track record of that though, especially in the acquisition by WPCT of some of WEIF's unquoted assets, which supposedly was a win-win for both sides.]

The fees would have to be renegotiated though because no one is going to do it for the current arrangement!

Unlike the OEIC, this one is doing what it says on the tin, so I can't see the board taking action in the short term. The trust doesn't require a periodic continuation vote to avoid wind-up either, so most likely it will limp along as WEIF disposes of its position in the fund.

The equity trade between the funds was carried out with WEIF buying shares in WPCT at NAV, when the fund was trading at a significant discount, so the trust probably did quite well out of that. If WEIF now needs to sell at market price, that initial purchase will certainly appear to be a significant error in judgement.

Jonbvn

quirkydeptless wrote: »

https://www.hl.co.uk/news/articles/woodford-equity-income-all-dealing-suspended-following-redemption-concerns

Woodford Income Focus has also been removed from the Wealth 50, but is still trading.

FT & BBC now reporting.

https://www.bbc.com/news/business-48506032

https://www.ft.com/content/ee03cb4a-8627-11e9-97ea-05ac2431f453

This looks serious for Woodford now. His reputation is in tatters.

Mistermeaner

I sold out years ago

Read on the beeb article that Kent county council have tried to withdraw their 250mil stake

What on earth are a county council doing investing in this? And if part of a long term and diverse investment portfolio (as it should be) why on earth are they attempting to withdraw ?

Baffling

masonic

Mistermeaner wrote: »

What on earth are a county council doing investing in this? And if part of a long term and diverse investment portfolio (as it should be) why on earth are they attempting to withdraw ?

No big surprise, county councils have form for doing interesting things with their money, such as piling into the Icelandic banks ahead of their collapse.

Looks like WPCT has opened 5% down this morning... edit: make that 20% and going in and out of auction.

Johnnyboy11

masonic wrote: »

No big surprise, county councils have form for doing interesting things with their money, such as piling into the Icelandic banks ahead of their collapse.

Looks like WPCT has opened 5% down this morning... edit: make that 20% and going in and out of auction.

Hargreaves Lansdown also down by about 6%, presumably by association.

Jonbvn

Johnnyboy11 wrote: »

Hargreaves Lansdown also down by about 6%, presumably by association.

Well HL were fanboys for many years. It really hasn't gone to plan since Invesco Perp.

aroominyork

bowlhead99 wrote: »

I hope the lack of confidence will make the Patient Capital trust cheaper to buy vs the assets it holds.

Your wish... 15-20% down this morning. Anything else I can do for you?

KiKi

Naive investor here, please be kind!

I have money in another WF fund (not this one) which has also done badly and HL have taken off their Wealth list.

Is it likely that the issues with the fund discussed here will impact his other funds? Ie, investors will get out altogether? I'm thinking of getting it off those today. I have the LF WF Income Focus.

Thank you.

Zero_Sum

Mistermeaner wrote: »

I sold out years ago

Read on the beeb article that Kent county council have tried to withdraw their 250mil stake

What on earth are a county council doing investing in this? And if part of a long term and diverse investment portfolio (as it should be) why on earth are they attempting to withdraw ?

Baffling

It wont be the county council, it'll be the Kent county LGPS who the county council will administer. The various district councils, fire & police admin staff also pay into this.

AnotherJoe

KiKi wrote: »

Naive investor here, please be kind!

I have money in another WF fund (not this one) which has also done badly and HL have taken off their Wealth list.

Is it likely that the issues with the fund discussed here will impact his other funds? Ie, investors will get out altogether? I'm thinking of getting it off those today. I have the LF WF Income Focus.

Thank you.

Just my personal view, yep, it's called "contagion". Sometimes for good reason, such as s the interconnected nature of some of the funds, and in others just because his name is associated with it.
I don't know which of those categories your fund falls into but probably the latter. Trouble with selling a fund like this that's otherwise OK is you'll be selling at exactly the wrong time. If the fund has decent underlying investments ultimately it will come back and you might do better to wait. OTOH if it bought shares in his other funds / investments to try and prop them up then you're stuffed.