Friday, 26 July 2013

June 2013: Following Woodford update.

So, each of "the 3 ways to follow Woodford" pulled back from what are now month end closing all time highs for this experiment strategy
Still out in front with a gain of 20.08% is a direct investment in the Woodford managed Invesco Perpetual flagship fund, the High Income Fund.
Close behind on 17.62% is still the alternative Woodford managed Edinburgh Investment Trust.
And, still lagging in third place is the 3 picks option with a gain of 15.13%.

But, healthy gains are now being seen across all 3 options.

Looking at the 3 picks, all 3 individual companies continue to be top 10 holdings for the High Income Fund so no changes are required ( Invesco Perpetual High Income Fund).

Shares Price Value & Gain
Inv. Perp. High Income 1110.14 6.49 7204.84 20.08%
Residue 0.00
Total 6000 7204.84 20.08%
Edinburgh Investment Trust 1182.00 5.65 6678.30 11.31%
Residue 0.43
Dividends 378.24
Total 6000 7056.97 17.62%
3 Picks
BAT 61.00 33.67 2053.87 2.69%
Glaxo 138.00 16.48 2274.24 13.71%

BT 788.00 3.09 2434.92 11.05%
Residue 0.00
Dividends 144.51
Total 6000 6907.54 15.13%
Transactions in the month:
Invesco Perp. High Income N/A
Edinburgh Inv. Trust
3 Picks

Click to enlarge, close to return.

Interesting to see the chart which illustrates the battling roller coaster ride with each of the choices taking their turn out in front.
But since the turn of the year both of the Woodford managed options opened a significant gap over the 3 picks which has only just started to close.
As far as I can surmise this came from 2 distinct elements, the first being a surge in the share price and fortunes of Rolls-Royce contributing to the Fund and Trust but not the 3 picks.
Secondly, and at the same time, the pullback and subsequent sale of Vodafone from Woodford's managed funds had a disproportionately negative impact on the 3 picks as it was originally a 33% holding.
This also forced my hand, creating a negative timing issue, with a sale and purchase of BT which unfortunately had already given gains to the funds but forcing me to buy within touching distance of recent highs meant that no such gain was contributed to the 3 picks option.

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