Woodford Concerns
Comments
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Interesting to see the effect on HL as a consequence. Serious backers of the Woodford funds. Perhaps not the best company analysts in the marketplace. Like Woodford thought that they were better than they actually are.0
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dividendhero wrote: »HL now have something of a reputational problem and they don't seem to be a doing much about it thus far.
What I haven't seen much in the press so far, but probably will come, is Terry Smith's commentary about how funds get negotiated onto HL's list. If that comes under the spotlight more, it will be reputationally uncomfortable for HL.0 -
londoninvestor wrote: »What I haven't seen much in the press so far, but probably will come, is Terry Smith's commentary about how funds get negotiated onto HL's list. If that comes under the spotlight more, it will be reputationally uncomfortable for HL.
As I hinted earlier, he's been reported as commenting on such matters more than once in recent years, such as we won't pay to be on HL Wealth 150 , 5 years ago.0 -
As I hinted earlier, he's been reported as commenting on such matters more than once in recent years, such as we won't pay to be on HL Wealth 150 , 5 years ago.
Sure - what I mean is that this hasn't yet been brought up much in the context of the WEI suspension situation. It probably will now...0 -
I was thinking about buying some of his Income Fund shares when it was launched, just glad that I didn't.
I'm glad I did - actually just after launch at 99p. He made me 30% in ~3 years - very good for a UK fund. With hindsight (i.e. being able to see into the future) I could have got out at 40% but waited to see if the fall would reverse, looked at the portfolio and views expressed by others and jumped. People seem to forget that brokers took him off their recommend lists already and even advised a switch. HL were out on their own sticking with him till now. If I was still in I'd wait and write it off as an active punt that didn't come off, even if it has to be wound up, which could be likely after all the hype. That's the risk you take and hope your much larger other stuff will compensate with diversification.0 -
dividendhero wrote: »Hopefully will be better than this feeble statement from HL today..
https://www.hl.co.uk/news/articles/woodford-our-viewpoppy100 -
I'm glad I did - actually just after launch at 99p. He made me 30% in ~3 years - very good for a UK fund. With hindsight (i.e. being able to see into the future) I could have got out at 40% but waited to see if the fall would reverse, looked at the portfolio and views expressed by others and jumped. People seem to forget that brokers took him off their recommend lists already and even advised a switch. HL were out on their own sticking with him till now. If I was still in I'd wait and write it off as an active punt that didn't come off, even if it has to be wound up, which could be likely after all the hype. That's the risk you take and hope your much larger other stuff will compensate with diversification.
No, it wasn't "very good for a UK fund".
From launch in June 2014 the total return of the Woodford fund was about 35% over three years, compared with a FTSE all-Share tracker such as L&G which had a total return over the same period of about 25%.
So the Woodford fund had a greater total return than a market tracker of about 3.33% a year, which is not "very good" but is actually only slightly above the total market for the period.
And now the total return over 5 years is zero, compared with a all share tracker's total return over those 5 years of roughly 30% - or 6% a year.0 -
dividendhero wrote: »While what you say is true from a regulatory perspective, the fact remains that HL now have something of a reputational problem and they don't seem to be a doing much about it thus far.0
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Clearly if you already own units in the Income Fund you now have no choice but to hold, but I'd be interested to hear peoples views on the Income Focus Fund and Patient Capital Trust, especially if you're already invested in them.
Buy, hold or sell?
I own units in the Income Focus Fund (currently 5.5% of my portfolio) and I'm going to continue to hold them.
My thinking is that his investment strategy adds diversification to my portfolio and given time may do quite well (he's done it before!), but if it continues to underperform then it's only a small part or my overall investments so I'm not losing any sleep.0 -
No, it wasn't "very good for a UK fund".
From launch in June 2014 the total return of the Woodford fund was about 35% over three years, compared with a FTSE all-Share tracker such as L&G which had a total return over the same period of about 25%.
So the Woodford fund had a greater total return than a market tracker of about 3.33% a year, which is not "very good" but is actually only slightly above the total market for the period.
And now the total return over 5 years is zero, compared with a all share tracker's total return over those 5 years of roughly 30% - or 6% a year.0
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