Woodford Concerns

AnotherJoe

Retired_Minky wrote: »

A bit off topic but I’d like your advice on this.

Seeing what’s happened here with a single fund has got me worried about my own situation.

I’m 100% invested my pension in the Vanguard Life Strategy 80 fund.

Should I move my money to multiple funds to avoid a similar situation. If so how many funds do you recommend?

I’m not an active investor. I just want to put the money somewhere and forget about it. Looking to drawdown from the pension in about 10 years. Happy with a slightly higher than normal risk as I have a separate income from property portfolio that will supplement whatever I get from my pension.

Any advice from those more in the know appreciated.

There are multiple similar products to VLS80 (many arguably a bit better) that you could invest in, in addition to vls80, to protect yourself from something highly unusual happening at vanguard. As said above, a Woodford scenario isn't going to happen as the situation between the two is so different
. You wouldn't protect yourself from a stock market crash, as these funds would track very similarly to VLS80 but I don't think there woudl be harm in starting to build up one of these funds. Look at legal and general, black rock, standard life. You would come to no harm just going 50/50 on VLS and one other provider.

Lokolo

gadgetmind wrote: »

The equities in Life Strategy are certainly liquid, but flogging a lot of bonds in a hurry is less easy. But as you say, the problems would be *far* bigger were passives to see large withdrawals.

Haven't seen you around in a long time! Hope you are well.

Malthusian

AnotherJoe wrote: »

There are multiple similar products to VLS80 (many arguably a bit better) that you could invest in, in addition to vls80, to protect yourself from something highly unusual happening at vanguard. As said above, a Woodford scenario isn't going to happen as the situation between the two is so different
. You wouldn't protect yourself from a stock market crash, as these funds would track very similarly to VLS80 but I don't think there woudl be harm in starting to build up one of these funds. Look at legal and general, black rock, standard life. You would come to no harm just going 50/50 on VLS and one other provider.

But it wouldn't protect the OP against the scenario he is worrying about - namely the markets seizing up as they did in the credit crisis, even for supposedly liquid assets such as bonds - because his Vanguard and L&G fund would be invested in largely the same things and would both be affected.

But it matters little as in reality, a) the odds of the funds shuttering completely for an extended length of time are extremely low, b) if the funds did shutter, you almost certainly wouldn't want to cash out anyway, as you would be cashing in a massive loss. Unless you were extremely dim, or you had a gambling debt to the mob that had to be paid that day to avoid being fitted with a concrete overcoat.

Recall the post-Brexit-referendum commercial property crisis when investors acted like cats miaowing at the door during a rainstorm. When Aberdeen, for one, opened the door (with a hefty penalty), investors decided they didn't actually want to go out anyway and cancelled their withdrawal requests.

Lungboy

Woodford apologises to investors.

Drp8713

He didnt disable comments on that video, must have been feeling brave.

Zola.

He should probably take that £37m he made in fees recently and retire.
I am glad I held off ever investing in this fund. Index all the way. Boring but safer.

Johnnyboy11

Does anyone think HL's shares are worth a punt, they are down 9% since yesterday's open?

Zola.

Will anyone trust their recommendations again?

Brian65

After glancing at WPCT ongoing charge of 0.17% thought Woodfords charges were very cheap https://www.hl.co.uk/shares/shares-search-results/w/woodford-patient-capital-trust-ord-gbp0.01
What am I missing?

Johnnyboy11

Woodford Equity Income price updated on HL's website, 97.51, ouch!


https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/l/lf-woodford-equity-income-accumulation