Share Investment, Discussion & Tips

[mudskipper]

It's complicated, but here's an attempt -

Equity Income Fund - Has been "frozen" due, basically, to Woody investing way too much of the money in illiquid assets. And when more people were drawing money out than paying in, he couldn't meet redemptions. He had no choice but to suspend the fund. You will have to wait until the fund re-opens to get what remains of your money back. It is possible the fund will not re-open but will be liquidated and the proceeds distributed pro-rata. Beyond that, nobody knows the future.

Equity Income Focus Fund - AFAIK, business as usual.

Woodford Patient Capital (WPCT) - Note this is an investment trust, not strictly "a fund". It's shares are quoted and traded on the London stock exchange like any other publicly quoted company. Due to Woody's investment choices being quite "brave" (and other stuff too) it has lost rather a lot of it's value since the equity income fund got suspended. Since it is quoted on the LSE, if the number of sellers is more than buyers, the share price drops and may fall below the trust's net asset value (the value of the underlying assets held by the trust). Presently, that is exactly what has happened to WPCT. There's other stuff too, much, much more that you can find all over the media. But that's the situation as I understand it today. HTH.

Ta. It's the Equity Income fund I've got some of my dosh in. Ah well, will have to see what transpires.

[Fred Bloggs]

Ta. It's the Equity Income fund I've got some of my dosh in. Ah well, will have to see what transpires.

OK. Then you're locked in, I'm afraid. Either you do nothing and wait to see how the fund performs going forward after the locks are taken off. Or you wait for the fund to be unfrozen and then cash out. Or the decision will be made for you via a liquidation and return of what's left of your money. Nobody knows yet if the third option will happen or not.

[sludgesurfer]

Thanks for the recommendation. I've ordered a copy as it's clear to me that I need to know more.

He is a guest writer on the monevator website also. His article on the merits of owning a total world equity index tracker (like VWRL) is worth a read.

Kroijer

[Fred Bloggs]

Woodford Equity Income Fund being liquidated.

Ta. It's the Equity Income fund I've got some of my dosh in. Ah well, will have to see what transpires.

You and any other unfortunates need to read the press this morning. It's not great news, but you will eventually get some money back.

[SimonMac]

On the plus side, my pension is doing well today!

[syrio]

Quite surprised to see only one mention of Lars Kroijer on these boards. His book ("Investing Demystified") is very good if you happen to come across it in your local library and the advice would seem to be simple and straight forward... I would have liked to have come across this sort of information in my 20's TBH.

I second that advice. It's the best book on investing for most people.

You can also get the gist of the book from his Youtube channel.

[Ploptimus]

Hi,

What are people watching in the current landscape, personally I moved a chunk of my pension over to tech at the bottom which has offset any other losses but not really watched anything else.

In this thread are people generally just looking at personal investments or with company retained profit? With interest rates being so poor I rushed to get my corporation tax paid to benefit form that sweet sweet 0.5% interest (as long as that lasts) I wonder if my retained profit could be put to better use.

Brief overview of company situation:
Currently in a FTC so not contracting but may go back after depending on market.
Various small projects running through company lets say about 10k/year, costs about 1.5k/year accountant etc
Withdraw 2k tax free dividend, no point in more due to tax bracket on FTC, may put some in pension but FTC provides very good pension contribution already
Potentially long term on company: switch to SPV or create SPV and use that cash for property. Not quite enough retained to look at this yet and need to do some more research.

Does anyone have any experience in investing with their retained profit and any advice or potential pitfalls other than DYOR and your investments may go down as well as up?

Thanks

[Fred Bloggs]

Conventional wisdom is to not invest within the Ltd Co structure. Withdraw the money and invest it to lock in your personal tax breaks, SIPPs and ISAs. Recent months I have moved some money into some ETFs which I haven't done in the past. They are a Tech and a Pharma ETF both by L&G and and a Computer Gaming ETF by Van Eck. Both for long term accumulation. Investment trusts in those spaces look expensive and OEICs may have higher costs attached. Hence looking at ETFs for the first time. I have a solid core of investments (about half of total) with Fundsmith, Blue Whale and Smithson IT. A very badly timed entry into some (what I thought were) quality dividend paying shares in the UK in advance of retiring has been a total disaster. Massive losses and almost no dividends. I have started looking overseas for income, namely through Henderson Far East Income IT (HFEL).

[CanPayButWouldRatherNot]

inherited funds ... how to invest over and above ISA/pension limits

not happened yet but wanted a bit of advice from you sages on this scenario.

have used up family tax free ISA/pension limits (40k) but would like to stick this inherited money in tracker etf's for ease.

going on the advice here I'm with interactive investor

so in my case with ~400k coming in .......is there a equivalent container outside of ISA/pension planning .. where potentially i can stick the money and let it grow ...guess I'd only pay tax on winnings if it was taken out and maybe able to draw dividends from it (52 and looking to finish at 55).

will also raise this with the accountant but keen to see if anyone else has been thru this scenario

[Fred Bloggs]

not happened yet but wanted a bit of advice from you sages on this scenario.

have used up family tax free ISA/pension limits (40k) but would like to stick this inherited money in tracker etf's for ease.

going on the advice here I'm with interactive investor

so in my case with ~400k coming in .......is there a equivalent container outside of ISA/pension planning .. where potentially i can stick the money and let it grow ...guess I'd only pay tax on winnings if it was taken out and maybe able to draw dividends from it (52 and looking to finish at 55).

will also raise this with the accountant but keen to see if anyone else has been thru this scenario

Tax sheltered? No. Use your II trading account then bed and ISA each year.