Fund News & IronMarket Recognition
We write today following the incredible and potentially concerning news from yesterday that Neil Woodford has suspended trading in his £4bn flagship Equity Fund following a sustained period of exists, amounting to £530m in just 4 weeks! News, normally the privilege of the Investment Profession, is now filtering through to the BBC and traditional outlets.
However, clients of IronMarket’s Discretionary Managed Portfolio Service need not be concerned.
As communicated in our summary of June 2018 found here:
Extract from the June 2018 Update:
"Making the Calls
We'd like to bring your attention to one piece of manager intervention in particular, however.
We made what was considered a contrarian call at the start of the year (it's only in the last few weeks that some of the world's largest analysts have followed suit) in terms of dropping Neil Woodford’s Equity Income Fund from our portfolios.
We then chose a fund with a mandate more akin to our innovative and contrarian view, for a replacement UK exposure.
See below the relative performance of both funds year to date 2018:
As you can see there is almost a 12% difference in year to date performance without adjusting the risk profile of the portfolios.
This may not always be the case but hopefully goes some way to demonstrating how we proactively manage your investments with us and are prepared to make the big decisions when we feel it's right for our clients.”
Value and Protection
We understand that with the high level of transparency we provide it’s easy in difficult times for investment markets, to focus on costs or firm size, however, hopefully the action our Investment Team took at the start of 2018, contrary to industry opinion and in light of yesterday’s news, demonstrates the incredible value of having a discretionary manager making decisions like this to protect your investments and thus your financial future & long term financial wellbeing.
Expanding on this point, it is notable that the two largest firms in the UK, Hargreaves Lansdown and St James Place, did not make the same decision, indeed during the last 12 months, they have been publicly vocal in support of Woodford and holding the fund.
Want to know more?
All of our previous communication can be found on our blog:
If you are not currently a client of our Discretionary Portfolio Management Service, and want to know more, again please speak with your IronMarket Financial Planner in the first instance who can discuss this with you.