Woodford Concerns

Moe_The_Bartender

Another £150m was written off last week.

http://citywire.co.uk/funds-insider/news/woodford-fund-loses-150m-after-writedowns-on-eve-of-wind-up/a1314976

bowlhead99

pioruns wrote: »

Has there been any news, any highlights since last posts in December? I've read few news online about payout day for investors in gated fund being this month.

The liquid assets had to stay substantially invested in market instruments until 17 Jan which was the final pre-liquidation valuation date. They will now be going through the process of cashing them in while trying to minimise transaction costs. The unquoted assets will still take time of course.

First interim payout day will now be around 30 Jan, with the amount of payout being notified to investors around 28 Jan. But this depends on which particular platform you are using, so best to assume that's a best case scenario. For the investors in the Inc versions there will be the usual dividend for the period to December 31 on the standard timetable and then another for the 17-day January pre-liquidation period, in due course.

Linked below is most recent investor letter which is pretty self explanatory.

https://equityincome.linkfundsolutions.co.uk/investor-communications/friday-10th-january-2020-investor-letter-regarding-the-winding-up-of-the-lf-equity-income-fund/

redux

dividendhero wrote: »

Current Private Eye magazine is interesting.

A number of fund managers have been bribing, sorry contributing to the Tories - they're pay off will be less regulation after the Woodford debacle...what could possibly go wrong :wall:

It used to be more widespread. I remember years ago seeing Michael Hart justifying Foreign & Colonial contributions, but gradually investment trusts stopped.

Nowadays hedge funds seem to especially like this. Check how much of Boris Johnson's leadership campaign they paid for, and muse on why and what they think they're buying.

gadgetmind

fun4everyone wrote: »

Appears to have risen quite sharply in the last few days with some large director buys

Director buys make the news, but their sells tend to fly under the radar, if they are careful.

bowlhead99

bowlhead99 wrote: »

First interim payout day will now be around 30 Jan, with the amount of payout being notified to investors around 28 Jan. But this depends on which particular platform you are using, so best to assume that's a best case scenario. For the investors in the Inc versions there will be the usual dividend for the period to December 31 on the standard timetable and then another for the 17-day January pre-liquidation period, in due course.

Linked below is most recent investor letter which is pretty self explanatory.

FWIW, Link published the investor notifications today for the first capital distribution - the exact number of pence per share will vary by share class.

As a rough guide, my mum has a few thousand of the Z income class, which in the first week of Jan when I last looked had a valuation of 69 5p; they are paying out 48.49p a share of capital, so that would be about 70% of what it was worth at the start of the month ex div; a penny or two of dividends to follow. Excluding the dividend due, the capital payout is about 74% of today's published NAV.

sg1000

I'm looking at an overall loss of around 50% since inception, going by the H and L figues today:
LF Equity Income Class Z Income 48.4932

LF Equity Income Class Z Accumulation 58.9936


Above is what they are saying will be the initial payouts.

littlecub

I'm feeling so damn rotten and worthless I really dont know where to turn.

I have been watching this from a distance almost burying my head in the sand, I always do what I could to maximise my money yet making sure it was always safe. Always switching banks when the intro offer ended, subscribing to help to buy, etc I thought I was so cash savvy. The news today confirming my payout has undone all my efforts from the last 15 years 10 times over.

I know its only money and I hope I can recover, but I just feel so so guilty for being stupid, I dont know why I thought this couldn't have happened I feel like I should have foreseen it.

In the past few hours I have listed so of my prize possessions for sale (from my hobbies etc), I feel like I owe it to myself to fill the void what I have lost i'm almost crying.

I really feel for any fellow investors who are feeling like me, I hope this makes us stronger.

Do you think any of the future sales from the funds will amount to much?

bowlhead99

sg1000 wrote: »

I'm looking at an overall loss of around 50% since inception, going by the H and L figues today:
LF Equity Income Class Z Income 48.4932

LF Equity Income Class Z Accumulation 58.9936


Above is what they are saying will be the initial payouts.

If inception was 100p and the Acc class is going to make a series of capital payments during the liquidation with the first of those payments being 58.99p, it doesn't seem like you are looking at an overall loss of 50% from inception.

Likewise the income class which has already paid several pence of dividend per year and will now be paying 48.5p

I'm not disputing that the fund has done badly, nor that some investors who bought in at values in excess of the launch price may eventually lose half their money. It's yet to be seen how much more will be realised.

But on the facts, you haven't made an overall loss of 50% from inception if you invested at the price at inception and will have already received over half your money back after this capital payment and there are further capital payments to come.

SonOf

I really feel for any fellow investors who are feeling like me, I hope this makes us stronger.

On the plus side, it should only have formed a relatively small part of your portfolio. After all, it was a single sector fund designed to be held as one of many other single sector funds. It would have made up some or all of your UK equity holding. So, your US, European, Asia, Japan, Bonds, property etc allocations would be so much greater overall. So, the loss relative to your total investment shouldn't be that hard to swallow.

littlecub

SonOf wrote: »

On the plus side, it should only have formed a relatively small part of your portfolio. After all, it was a single sector fund designed to be held as one of many other single sector funds. It would have made up some or all of your UK equity holding. So, your US, European, Asia, Japan, Bonds, property etc allocations would be so much greater overall. So, the loss relative to your total investment shouldn't be that hard to swallow.

Oh yes, its all just swell thank you for reminding me.