sharetrader
Results 1 to 6 of 6
  1. #1
    Senior Member
    Join Date
    Apr 2013
    Location
    Pourquoi?
    Posts
    804

    Default Managed Funds (Pie etc) - Risk to look out for

    https://www.theguardian.com/business...-woodford-fund

    "Chris Hill, its chief executive, said he shared clients’ disappointment and frustration after the closure of the Woodford equity income fund which prevented investors from cashing out of the ailing investment vehicle."

    "His firm has come under fire from investors who will not be able to access their investments until the suspension is lifted. Investors have also criticised the City regulator, the Financial Conduct Authority, for failing to see the risks taken by Woodford."

    Just a friendly reminder that this generally happens when the market turns or the "picks" dont work. The long withdrawl period for general business is in my opinion risky but if this turns sour and theres a run on the fund then you are locked in. Worth the extra 2% extra return?

    Dont have all your money in one of these funds.

  2. #2
    Senior Member
    Join Date
    Apr 2013
    Location
    Pourquoi?
    Posts
    804
    Last edited by Schrodinger; 10-06-2019 at 09:02 AM.

  3. #3
    Update Ready To Install
    Join Date
    Aug 2010
    Location
    Floating Anchor Shoals
    Posts
    8,044

    Default

    Quote Originally Posted by Schrodinger;[COLOR=#121212


    Dont have all your money in one of these funds.
    [/COLOR]
    Agree with that.

  4. #4
    Member
    Join Date
    Jun 2008
    Posts
    428

    Default

    Quote Originally Posted by Schrodinger View Post
    https://www.theguardian.com/business...-woodford-fund

    "Chris Hill, its chief executive, said he shared clients’ disappointment and frustration after the closure of the Woodford equity income fund which prevented investors from cashing out of the ailing investment vehicle."

    "His firm has come under fire from investors who will not be able to access their investments until the suspension is lifted. Investors have also criticised the City regulator, the Financial Conduct Authority, for failing to see the risks taken by Woodford."

    Just a friendly reminder that this generally happens when the market turns or the "picks" dont work. The long withdrawl period for general business is in my opinion risky but if this turns sour and theres a run on the fund then you are locked in. Worth the extra 2% extra return?

    Dont have all your money in one of these funds.
    PIE are obviously aware of this risk as the withdrawal notice period on their riskiest fund is 3 months. That fund is also currently 50% cash, causing its performance to suffer.

  5. #5
    Update Ready To Install
    Join Date
    Aug 2010
    Location
    Floating Anchor Shoals
    Posts
    8,044

    Default

    Sensible though , who knows whats around the corner. Same with our shares albeit more liquid. Successful savvy guys i know, ride out the cycles usually in larger companies though.

  6. #6
    Member
    Join Date
    Nov 2018
    Location
    Christchurch
    Posts
    179

    Default


    I think the same can be said for the opposite for funds that are at the top winning. It's like the argument goes, if 1000 fund managers went out to pick stocks for their clients, you're going to find 1 or 2 that will beat the S&P500 index after 10 years. But who would be willing to think those 2 would repeat the same performance, when they've only been lucky? Diversifying will end up be the same.

    PIE funds are just a tax break for those that are in the top income tax bracket but get the benefit of the maximum 28% tax rate in that fund, when the person could easily be at the much higher tax rate.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •