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  • FIRST POST
    • sorcerer
    • By sorcerer 9th Jan 18, 1:32 PM
    • 844Posts
    • 403Thanks
    sorcerer
    Woodford Equity Income
    • #1
    • 9th Jan 18, 1:32 PM
    Woodford Equity Income 9th Jan 18 at 1:32 PM
    So after holding Woodford Equity Income since the start I have decided to sell it and move on. Two reasons it poor dividend for this year and its poor performance.

    I am thinking of replacing it was Merchants Trust, and despite having to pay stamp duty on top, I think in the longer term it will hopefully be better. I will save about £22 a year in Platform fees, the dividend is nearly double of woodfords, and performance over the last year is about 14% ish, compared to woodfords 0% ish.

    With it being a trust, it can also hopefully grow the dividend each year, currently dividend growth is about 1.4% a year.

    What do you guys think?
Page 4
    • bowlhead99
    • By bowlhead99 11th Jan 18, 11:28 AM
    • 7,975 Posts
    • 14,513 Thanks
    bowlhead99
    When I read threads like this I quietly despair that I’m tracking the effects of your ill informed ill judged and fundamentally random trades.
    Originally posted by TheTracker
    Well, for every ill informed mug punter making ill judged fundamentally random trades in one direction there will probably be another ill informed mug punter making fundamentally random trades in the opposite direction, and the overall effect on asset pricing might be neutral.

    Really, people like Sorceror are just creating a small amount of noise in the price (of either a share like MedicX, or of the underlying investee share holdings of a Woodford fund or a City of London IT); the core of the price is driven by the wall of money from institutional participants who are more savvy when deploying their funds.
    • firestone
    • By firestone 11th Jan 18, 11:50 AM
    • 246 Posts
    • 106 Thanks
    firestone
    When I read threads like this I quietly despair that I’m tracking the effects of your ill informed ill judged and fundamentally random trades.
    Originally posted by TheTracker
    one of the complaints of experts ( of which i am not ) is that the popularity of trackers has caused money to be fed in a random way into good companies as well as bad within a tracker.In a downturn you will be tracking and so will i in my pension ill judged and bad trades with a tracker so it can work both ways
    • sorcerer
    • By sorcerer 11th Jan 18, 1:51 PM
    • 844 Posts
    • 403 Thanks
    sorcerer
    I am not sure why you think this is random, I have a portfolio over about 30 investments, in which I try to complement each other, in terms of risk , volatility, yield and dividend distribution date's . Removing woodford and buying MedicX , reduces my duplication of stocks and allow for a different kind of income.


    Together with a number of rules I have placed about what I can and can't buy for the portfolio. To pick random would suggest I would choose anything, bitcoin tracker perhaps, or a gold ETF, or a high risk share that produces no dividends.


    The point is to try to produce a stable and growing income with perhaps a little of capital growth,evenly spread across the year.
    Last edited by sorcerer; 11-01-2018 at 1:55 PM.
    • bostonerimus
    • By bostonerimus 11th Jan 18, 4:30 PM
    • 1,933 Posts
    • 1,273 Thanks
    bostonerimus
    That's a nonsense, because you're comparing apples to oranges. It's not the case that US REITs can typically buy, develop, manage and let out property with operating costs of an eighth of a percent of the value of that property
    I accept the comparison is not ideal....I'd describe it as comparing apples and pears......MedicX and Woodford Equity Income is apples to oranges.......maybe even apples to cabbages.
    Misanthrope in search of similar for mutual loathing
    • bowlhead99
    • By bowlhead99 11th Jan 18, 6:15 PM
    • 7,975 Posts
    • 14,513 Thanks
    bowlhead99
    That's a nonsense, because you're comparing apples to oranges. It's not the case that US REITs can typically buy, develop, manage and let out property with operating costs of an eighth of a percent of the value of that property
    by bowlhead99
    I accept the comparison is not ideal....I'd describe it as comparing apples and pears
    Originally posted by bostonerimus
    Really the misconception that the headline prices of your REIT tracker versus someone's individual REIT would be comparable is like someone saying , "in Boston my weekly shopping cart of apples, pears and other groceries costs $100" and then someone from London popping up and saying, "that's outrageous, I'm used to paying European prices and wouldn't touch your expensive shopping cart with a bargepole. I would never pay $100 every weekend for a shopping cart, over here at Tesco you just put a pound coin in as a deposit and then you can use it for a couple of hours, and you even get the pound back at the end. $100 for a shopping cart is outrageous."

    In one case of course they are pricing up the cost of the contents and the other person is just looking at the cost of using the metal container to carry the contents.

    ......MedicX and Woodford Equity Income is apples to oranges.......maybe even apples to cabbages.
    A friend of mine compares toads to grandmothers. Not professionally, he's just Serbian and they have different idioms to make the same point.
    • takesyourchances
    • By takesyourchances 17th Jun 18, 1:08 AM
    • 649 Posts
    • 414 Thanks
    takesyourchances
    Any more thoughts on LF Woodford at the moment going forward, I have held so far, it is only part of my holdings and been in from start as UK Equity Income, which it has been dropped out of so now starting to think should I sell out (not lost anything as was in early in the fund) and place the funds (£3500) into my City of London IT etc.



    I have not added to Woodford in a long time and starting to feel it does not have a place really now in my portfolio (was for my income portfolio) and I also hold Marlborough Multi Cap Income which is also an option to move some funds into along with CTY and simplify the funds if I decide to let it go for these reasons.
    Last edited by takesyourchances; 17-06-2018 at 1:34 AM.
    • ColdIron
    • By ColdIron 17th Jun 18, 8:34 AM
    • 4,256 Posts
    • 5,385 Thanks
    ColdIron
    CTY gets my vote
    • Alexland
    • By Alexland 17th Jun 18, 8:53 AM
    • 2,561 Posts
    • 1,945 Thanks
    Alexland
    Woodford doesn't have a place in my life. From what I can see he lurches between wild bets. If going active I prefer a fund manager who executes a refined proven long term strategy.
    • OldMusicGuy
    • By OldMusicGuy 17th Jun 18, 9:13 AM
    • 396 Posts
    • 780 Thanks
    OldMusicGuy
    I had some Equity Income for quite a while which did ok for me. I sold it and moved to the Income Focus Fund when it launched and also increased my overall holding as I felt this matched my goals in retirement.

    I disliked the volatility and poor performance and became worried that he was investing too much in unlisted stocks (which was not why I bought an income fund). Add to that I questioned some of his picks, which is not what you want when you are investing in an actively-managed fund based on stock-picking skill.

    So no place for Woodford in my investment strategy any more.
    • A_T
    • By A_T 17th Jun 18, 9:25 AM
    • 440 Posts
    • 287 Thanks
    A_T
    From messiah to pariah so quickly. Makes you wonder if it's all down to luck.
    • ColdIron
    • By ColdIron 17th Jun 18, 9:43 AM
    • 4,256 Posts
    • 5,385 Thanks
    ColdIron
    In the past he was criticised at times for what he didn't invest in, tech and financials, but now for what he does. I switched WEI for the Income Focus fund March last year as it was never much good for income anyway but it's still very much on probation and a only small proportion of my SIPP. CTY forms the UK equity income core of two of my income portfolios and I have more confidence in it
    • takesyourchances
    • By takesyourchances 17th Jun 18, 7:15 PM
    • 649 Posts
    • 414 Thanks
    takesyourchances
    CTY gets my vote
    Originally posted by ColdIron

    That is my gut feeling CTY for this money with Woodford's fund, I have set to sell out of Woodford and when the £3500 odd is cleared will move these funds into my CTY holding which is more suited for this income portfolio. It is a decision I needed to make with Woodfords not being what it set out to be at launch.
    • takesyourchances
    • By takesyourchances 18th Jun 18, 6:19 PM
    • 649 Posts
    • 414 Thanks
    takesyourchances
    That is my previous Woodford funds sold today and I placed the £3500 odd into my CTY so that's all taken care of and all in City of London now for my long term holding for this part of my portfolio.



    .
    • Wildsound
    • By Wildsound 18th Jun 18, 6:50 PM
    • 11 Posts
    • 8 Thanks
    Wildsound
    For UK Equity Income, I would go with one (or more) of the following in the OEIC universe:

    Threadneedle UK Equity Income
    LF Miton UK Multi Cap Income (my personal choice, better than average long term performance and lower than average volatility)
    Franklin UK Equity Income
    • takesyourchances
    • By takesyourchances 18th Jun 18, 7:10 PM
    • 649 Posts
    • 414 Thanks
    takesyourchances
    For UK Equity Income, I would go with one (or more) of the following in the OEIC universe:

    Threadneedle UK Equity Income
    LF Miton UK Multi Cap Income (my personal choice, better than average long term performance and lower than average volatility)
    Franklin UK Equity Income
    Originally posted by Wildsound



    I also hold Marlborough Multi Cap Income for several years and CTY. Woodford never turned out what it set out to at launch with dividend percentage and performance and a high amount of unquoted holdings which I don't want.



    I have sorted that section out now and felt Woodfords no longer had a place as I opened it for UK Equity Income from the start but it veered off.
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