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Woodford Concerns
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Holding multiple actively managed funds, all with different managers and different philosophies, runs the risk of you ending up with an overall portfolio that contains a bit of everything. The more you spread things around like this, the closer you get to something equivalent to a single tracker fund, but with much higher annual charges.Even if you had £500k portfolio of active funds, would it not be 'safer' to have a UK equity income allocation of say £50k split between 2 or 3 different UK Equity income funds with different managers and approaches, so you are less exposed if one underperforms really badly?0 -
Even if you had £500k portfolio of active funds, would it not be 'safer' to have a UK equity income allocation of say £50k split between 2 or 3 different UK Equity income funds with different managers and approaches, so you are less exposed if one underperforms really badly?
That's the approach I took in the income portfolio, three investment trusts held in each category for that very reason. Cost neutral in terms of holding and one monthly rebalance at CSD.
It also opens up the opportunity with regular rebalancing to capture some of said underperformance and hopefully then capitalis when the pendulum swings back the other way. That's the theory..'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0 -
I know what you mean as I do like index funds, but if you are looking for an income portfolio with a natural yield of around 4% it is hard to achieve with index funds. So rather than having one UK equity income fund, I prefer to split my UK allocation over a few funds or ITs, rather than relying on the one manager in the sector.Holding multiple actively managed funds, all with different managers and different philosophies, runs the risk of you ending up with an overall portfolio that contains a bit of everything. The more you spread things around like this, the closer you get to something equivalent to a single tracker fund, but with much higher annual charges.0 -
Had an email from Cavendish stating they are now preventing clients buying Woodford Income Focus, but will allow people to sell the fund.0
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Yes. For what its worth I have about 50% of my equities with Fundsmith. It doesn't worry me at all
AFAIK, Fundsmith is not invested in any unquoted stocks. The worst case scenario (excluding market movement which can affect all funds) is one of the larger holdings e.g. MS or FB going under.
BTW, we hold a sizeable chunk with Terry Smith, although not as high as a % as you.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
Certainly not disregarding that all (i actually said as much in my post) I am happy to take responsibility for not having looked under the hood it's the fact that what's under the hood was changed dramatically from what was originally purchasedMaxiRobriguez wrote: »Whilst the regulators have sat on their hands I don't think you can go the full hog and disregard your own mistakes that were a complete ignorance of what you actually were investing your own money in. There's been a couple of people recently who've admitted to buying investments that they didn't understand nor research, yet think they have a right to enjoy uninterrupted growth.
You know what you were buying with index funds and the associated risks and had comfort in investing in those. Why not get to a similar position with this one before pulling the trigger?0 -
Journalists will inevitably want to pick the stories from people who put their life savings in this one fund. But the low interest environment from the credit crunch (the great financial disaster as should be) which has helped this bull run has made a lot of unsophisticated investors change from savings to funds, and their experience has been an upward trajectory.
The end of 2018 should have been warning to them, but that 20% drop corrected itself within a couple of months and perhaps has led to complacency again. The complaints here that one fund does not grow and goes tits up will be as nothing in the next real downturn, where even tracker funds will not protect you. Careful thought about your investments needed.0 -
Journalists will inevitably want to pick the stories from people who put their life savings in this one fund.
Yes and although that's not representative of your average investor who is in WEIF it's fair enough to grab the headlines I guess.
What is bad is the pos newspaper I am not going to link which has gone after NW's personal life/marriage in an article this week. That's below the belt imo.0 -
Nice bounce back for the Patient Capital Trust today, up 4.40p (+7.46%) to 63.30p/63.80p.
Also seen that the Board have acknowledged the recent issues around Woodford at the moment with the following announcement:10 June 2019
Woodford Patient Capital Trust plc
Company Update
The Board of Woodford Patient Capital Trust plc (the "Company") notes the recent developments at Woodford Investment Management Ltd (the "Portfolio Manager").
Following the events relating to LF Woodford Equity Income Fund ("WEIF"), the Board also notes the reaction in the Company's share price and the share prices of certain quoted portfolio companies in which WEIF is also invested.
The Board is pleased with the operational progress of its portfolio companies, which the Board believes continue to have the potential to deliver attractive returns, in line with the long-term mandate of the Company. The operational performance of these businesses is not impacted by recent events.
Susan Searle, Chair, commented: "The Board is closely monitoring the situation and is engaging with its shareholders and advisers. Separately, the Board is in regular dialogue with the portfolio manager. The Board wishes to emphasise the long-term approach of the Company and will continue to keep shareholders updated as necessary.""If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett
Save £12k in 2021 - #027 £15,268 (76%)0 -
Journalists will inevitably want to pick the stories from people who put their life savings in this one fund. But the low interest environment from the credit crunch (the great financial disaster as should be) which has helped this bull run has made a lot of unsophisticated investors change from savings to funds, and their experience has been an upward trajectory.
Even if interest rates on savings were 6% I'd sooner hold a boring old IT like CTY that yields 4.2%0
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