The High Income Fund is still running close though with a gain of 3.34%.
Unfortunately the "positive" news stops there though, as the 3 picks option is now showing a -4.35% loss to date.
| Shares | Price | £Value | %Gain | |||
| Inv. Perp. High Income | 1110.14 | 5.59 | 6200.60 | 3.34% | ||
| Residue | 0.00 | |||||
| Dividends | ||||||
| Total | 6000 | 6200.60 | 3.34% | |||
| Edinburgh Investment Trust | 1182.00 | 5.11 | 6040.02 | 0.67% | ||
| Residue | 0.43 | |||||
| Dividends | 200.94 | |||||
| Total | 6000 | 6241.39 | 4.02% | |||
| 3 Picks | ||||||
| BAT | 61.00 | 31.21 | 1903.81 | -4.81% | ||
| Glaxo | 138.00 | 13.35 | 1842.30 | -7.89% | ||
| Vodafone | 1191.00 | 1.54 | 1839.50 | -8.03% | ||
| Residue | 3.68 | |||||
| Dividends | 149.72 | |||||
| Total | 6000 | 5739.01 | -4.35% | |||
 |
| Click to enlarge, close to return. |
Even though the 3 picks are a virtual portfolio (I do hold Vodafone), it is still disappointing to see the almost straight line deterioration since its peak in July at a level that has yet to be breached by any of the options.
Strange to suggest but looking at the chart and the individual performances since that July peak, the 3 picks are now looking like a contrarian option to both the Invesco Perpetual High Income Fund and the Edinburgh Investment Trust.
Which, given the original premise, and the fact that the 3 picks were taken from within the 3 largest weighted sectors in the High Income Fund's top 10, seems very strange indeed.
With the exception of Vodafone, where Neil Woodford appears to have reduced his stake, the global pressures on Pharmaceuticals (patent cliffs etc), and Tobacco (plain packaging, political will etc), should be felt at least proportionately by the Fund and Trust given their greater exposure to those sectors.
Which just leaves individual company performance as the possible defining factor whether that be another company from within the same sector exposure e.g Astrazeneca outperforming Glaxo, or a company from outside the top 10 which would have to go some given its lower weighted position.
Fair to say that the current disparity in performance is the exact opposite of what I was expecting, given management charges, and whilst I have reasonable confidence that future dividends will soon see the 3 picks turn positive, it does look like they will have some way to go to catch/overhaul the 2 Woodford managed options.
Particularly given that any out-performance in the 3 picks will also contribute to the 2 managed options.
The unexpected turnaround and apparent contrarian position does make the trial very interesting though.
Related article links:
Earlier related posts:
- November 2012: "following Woodford" update
- August 2012: "following Woodford" update.
- July 2012: Following Woodford update.
- June 2012: Portfolio Update.
- July 2012: Following Woodford update.
- June 2012: Portfolio Update.
- New proposed investment strategy based upon Neil Woodford's top 10.
Note: Unlike my Portfolio updates (Portfolio Updates.) which reflects an actual investment portfolio, following Woodford is an experimental strategy and a virtual portfolio.
However, I do hold an investment in Vodafone.
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