Woodford anyone?
Discussion
Derek Chevalier said:
PhilboSE said:
Derek Chevalier said:
PhilboSE said:
The funds have seen large outgoings as investors have taken their money elsewhere.
Investors buying high and selling low. Whatever next? 
In the case of Woodford, Equity Income was initially positioned as relatively few select stocks with steady dividends. IMO there was a very large flow of cash into the fund and of course he then had to invest it somewhere. A lot of this went into holdings in unlisted companies and into his favourite sector for startups - biotech. Some of the valuations placed on some of the businesses were IMO madness - such as Purple Bricks & Eve. Basically very big bets for high risk/return. Very different from the initial posit for the fund.
Woodford's launch of Equity Income had a relatively clear objective and with his track record (and clarity on fees and holdings) it seems perfectly reasonable to me for investors wanting steady income to have picked his fund. It also seems reasonable to me for those same investors to have decided that the performance and shape of the fund now means they could validly reconsider staying with it.
An interesting read. Woodford *and* Hargreaves. Which PHer could ask for anything more..? 
http://citywire.co.uk/funds-insider/news/woodford-...
http://citywire.co.uk/funds-insider/news/woodford-...
loafer123 said:
85Carrera said:
If you'd been invested with him at the time of the tech crash, when he had been criticised for not buying overpriced tat and held his nerve, you might take a different view.
Although looking at some of his investments and how they have performed I am beginning to wonder whether he hasn't lost his touch.
His support for Tinkler in the Stobart dispute meant he lost all credibility in my eyes.Although looking at some of his investments and how they have performed I am beginning to wonder whether he hasn't lost his touch.
Shades of Anthony Bolton and hubris, I think ...
rockin said:
A good point well made. The sole reason I've never been near Woodford in his stand-alone phase is "excessive hype" - notwithstanding his previously excellent track record at Invesco.
I was with Invesco as well. Put some of my money into his Equity Fund as well as some of son's JISA. Exited last night/today except for a small amount. PhilboSE said:
I hope I'm not coming across as argumentative, I'm actually genuinely interested in your position on this: what then do you regard as the optimal process to pick funds?
In simple terms (example below for someone planning for retirement)1. Identify your objectives. E.g. I want to retire at 60 with an income of £25k pa after tax in early retirement. Most important part.
https://www.amazon.co.uk/Enough-Much-Money-Need-Re...
2. Work out how feasible that is and the most efficient way to get there. How much risk does the plan require to deliver the (expected) returns and are you comfortable with that risk. Iterate if required. Second most important part
3. Only when 1 and 2 are done. Pick the engine (investments) that will deliver the plan. IMO the most simple part of the process (and least value add). All the evidence would suggest that attempting to pick winning funds leads to suboptimal outcomes so an alternative approach is to "buy the world" having a mix of bonds and equities that aligns with the risk as specified above.
https://www.etf.com/sections/index-investor-corner...
WindyCommon said:
To a layman such as myself, why would this hurt the industry? He has had a real shocker for a couple of years, hasn’t he?!
WindyCommon said:
Paywall. Anyone got the full text?Full text below:
Neil Woodford suspends trading in £4bn flagship fund
The LF Woodford Equity Income Fund has been suspended 'with immediate effect and until further notice'
Photo by Jenny Goodall/ANL/REX/Shutterstock Rex/Shutterstock
By Chris Newlands and Tim Burke
Updated: June 3, 2019 5:56 p.m. GMT
Trading in Neil Woodford’s flagship fund has been suspended following a long and painful period of debilitating outflows that has rocked the reputation of the once famed UK asset manager.
The suspension comes as one of Woodford’s biggest and oldest clients considers ditching the struggling investor after he lost them more than £60m over a 20-month period.
Financial News reported exclusively last month that Kent County Council, which has invested with Woodford for more than a decade, is in talks to cut ties with the 59-year-old following a period of significant underperformance.
According to a statement from Woodford Investment Management, the LF Woodford Equity Income Fund has been suspended “with immediate effect and until further notice”.
The company said: “Following an increased level of redemptions, this period of suspension is intended to protect the investors in the fund by allowing Woodford, as previously communicated to investors, time to reposition the element of the fund’s portfolio invested in unquoted and less liquid stocks, in to more liquid investments.”
Kent is Woodford’s only local government pension fund investor. If the council were to drop the fund manager it would result in the loss of hundreds of millions of pounds of assets and the removal of a pivotal investment mandate.
Ryan Hughes, head of active portfolios at AJ Bell, an online investment group, said: “The news that the Woodford Equity Income fund has suspended dealing will come as a shock to many people but it shows the sheer scale of redemptions the fund has been suffering in recent months with the fund falling to under £4bn from a high of over £10bn two years ago.”
The latest figures released by Kent County Council show Woodford managed £255m of assets for the local government pension scheme at the end of last year, 20% less than the £317m he managed as of March 2017. Over the last three years to the beginning of 2019 Woodford returned -4.5%, annualised, for Kent’s superannuation scheme, while the FTSE All Share rose 6.1%.
A senior investment executive at another local authority pension fund, who spoke to FN last month, called the slump “embarrassing” for both Kent County Council and Woodford. “Surely time is up for Woodford,” he said.
Kent County Council was contacted for comment.
Woodford Investment Management said: "We will keep all investors appropriately informed about the suspension, including its likely duration."
Adrian Lowcock, head of personal investing at Willis Owen, a fund broker, said: “Investors will understandably be concerned and, unfortunately, while the fund is suspended they will not be able to get their money. The suspension is likely to result in further outflow requests once the fund reopens, putting more pressure on Woodford."
To contact the authors of this story with feedback or news, email Chris Newlands and Tim Burke
Neil Woodford suspends trading in £4bn flagship fund
The LF Woodford Equity Income Fund has been suspended 'with immediate effect and until further notice'
Photo by Jenny Goodall/ANL/REX/Shutterstock Rex/Shutterstock
By Chris Newlands and Tim Burke
Updated: June 3, 2019 5:56 p.m. GMT
Trading in Neil Woodford’s flagship fund has been suspended following a long and painful period of debilitating outflows that has rocked the reputation of the once famed UK asset manager.
The suspension comes as one of Woodford’s biggest and oldest clients considers ditching the struggling investor after he lost them more than £60m over a 20-month period.
Financial News reported exclusively last month that Kent County Council, which has invested with Woodford for more than a decade, is in talks to cut ties with the 59-year-old following a period of significant underperformance.
According to a statement from Woodford Investment Management, the LF Woodford Equity Income Fund has been suspended “with immediate effect and until further notice”.
The company said: “Following an increased level of redemptions, this period of suspension is intended to protect the investors in the fund by allowing Woodford, as previously communicated to investors, time to reposition the element of the fund’s portfolio invested in unquoted and less liquid stocks, in to more liquid investments.”
Kent is Woodford’s only local government pension fund investor. If the council were to drop the fund manager it would result in the loss of hundreds of millions of pounds of assets and the removal of a pivotal investment mandate.
Ryan Hughes, head of active portfolios at AJ Bell, an online investment group, said: “The news that the Woodford Equity Income fund has suspended dealing will come as a shock to many people but it shows the sheer scale of redemptions the fund has been suffering in recent months with the fund falling to under £4bn from a high of over £10bn two years ago.”
The latest figures released by Kent County Council show Woodford managed £255m of assets for the local government pension scheme at the end of last year, 20% less than the £317m he managed as of March 2017. Over the last three years to the beginning of 2019 Woodford returned -4.5%, annualised, for Kent’s superannuation scheme, while the FTSE All Share rose 6.1%.
A senior investment executive at another local authority pension fund, who spoke to FN last month, called the slump “embarrassing” for both Kent County Council and Woodford. “Surely time is up for Woodford,” he said.
Kent County Council was contacted for comment.
Woodford Investment Management said: "We will keep all investors appropriately informed about the suspension, including its likely duration."
Adrian Lowcock, head of personal investing at Willis Owen, a fund broker, said: “Investors will understandably be concerned and, unfortunately, while the fund is suspended they will not be able to get their money. The suspension is likely to result in further outflow requests once the fund reopens, putting more pressure on Woodford."
To contact the authors of this story with feedback or news, email Chris Newlands and Tim Burke
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