Woodford Patient Capital answer our readers questions


#1

With the offer period to close shortly the Woodford Patient Capital Trust team have answered our questions about the upcoming launch. 2015 has seen a
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#2

This answers some of questions and concerns, especially about performance suffering whilst they take what will certainly be a long time to invest all of the money raised in early stage companies but if they are intending to invest in Blue Chips in the interim then my money will be working for me.

After posting this I will be logging on and committing to investing in this.


#3

Yeah I think I’ll join you @smithy101. I missed the Gabelli IPO which I would have bought too if they hadn’t been so hasty, but this looks like a good one to lock away for the very long term.

My main worry or niggle about this was that it would fall to a steep discount if they took a year or maybe more to fully invest the proceeds in early stage companies but I’m reassured that they’re going to invest in the interim.


#4

Well I’m pleased with my reply. Is everyone else who asked a question happy with their replies?

They answered my concerns that they might not have the skills to to up to the job though I’m still not sure that a VCT is maybe the best way to invest in these types of businesses at least from a tax perspective.

I’m subscribing for some shares. Best go get me skates on, only got until next week to get me application in…


#5

Happy with the answer to my question but @arkwelder asked an interesting question too. How come his hasn’t been answered? @whichinvest ?


#6

@mikemoore We’re awaiting a response on Ark’s question. I’ll chase it up @arkwelder.

Thanks for the reminder.


#7

There are an awful lot of people talking about this online and in the papers.

I have never actually bought an investment trust but I’ve been doing the six week course this week since I found this website and I’m going to make my first ever investment in this trust.

I’m only going to put £1000 in, I’m still cautious and that’s enough for my first ever investment.

I am doing the Investor Clinic as well, so please be kind and give me some help and some feed back. It might not appear until the new website is launched, depending on when I return the form to Rob Smith (who was so helpful, thank you). @whichinvestment (hope I’ve written that right!).


#8

Welcome to the forums @galestone. I’ve been investing in investment trusts for a couple of decades, and as long as you can be a long term investor you should be ok.

I’ve not looked at the investment trust course, was it the one they were doing on here? Was it any good?

There are a lot of experienced people on here or other forums too such as Motley Fool or iii.co.uk.

The Woodford trust should do well in the long term, I’ve applied for shares too.

I think you meant to write @whichinvest to call the Moderators.


#9

Thanks @samsmith (hope I get it right this time).

Thanks for the welcome and the tips. Yes I did the investment trust course on here that was done with a company called Edison. I thought it was good because it was easy to follow and when I was looking at some investment trusts yesterday I realised, to my shock, a lot of it had sunk in. I remembered what a discount was, what NAV was and a lot more too.

My post is all bunched up, doesn’t it do paragraphs?


#10

@galestone No my name on here is @smithy101. I wish it was the same as the display name. What you need to do it click on my name to go through to my profile to find the name you need to use in the forums.

As you recommend the investment trust course I’ll pass it on to my nephews and nieces.

I see what you mean by bunching up posts. It doesn’t seem to be recognising paragraphs. That’s new, it didn’t use to do that. Maybe one for @whichinvest to look in to.


#11

Oops. Thank Sam or @smithy101.

Maybe the new website will fix this problem then. I think it’s launching in the next couple of weeks or so, is that right?


#12

I don’t know when the new site is launching. You’re better informed than I and you’ve just joined @galestone


#13

Yes we are launching a new site and new forum software @samsmith101 @galestone though I won’t guarantee it will be within two weeks but it won’t be long.

We are aware that paragraphs are no longer working. Unfortunately something or other always goes wrong with our forum software which is why we’re not only excited to be moving to something else, we can’t wait!

Thanks for your kind words @galestone and glad I was able to help.


#14

Oh no, this closes on Tuesday. I didn’t realise it was so soon and I haven’t applied for shares yet.

I read in the Standard tonight that the offer has been increased to £800m. That’s a bit too much I think and I’m going t reduce the amount I’m investing.

It won’t be easy to invest £800m in early stage companies without diluting it too much.


#15

£800 m is a lot of dough for investing in small companies which most of these will be. It probably just means that they’ll run a long list of companies they’re invested in, like maybe 100-120.

To be honest I trust Woodford to get it right because it’s his reputation on the line.


#16

Is it greed that has driven Woodford to accept £800m for a early stage investor fund? The issue with this is instead of investors having the opportunity of investing in a fund that specifically invests in smaller and potentially fast growing businesses he’ll have to dilute the fund by holding a larger number of Footsie 100 and Midcaps because otherwise he won’t be able to invest £800m quid.
What this will become is a multi cap fund, of which there are many already, but it won’t be as described on the tin and I’m very disappointed with that.


#17

Doesn’t make it a little less risky too @stgeorge?

I mean because larger Footsie 100 companies don’t go bust as much as new companies.


#18

Well you can make it less risky for you personally by not investing too much in it @galestone.

 

My point is I am not attracted to Patient Capital because it’s going to be all things to all men. I want to make the decision of where I want to allocate my investments from an asset class perspective myself. I can’t do that if this is going to invest across the board and in any case it was sold as an early stage investor fund.


#19

I was tempted but have decided to give this one a miss. It was only ever going to be a very small speculative punt for me but the risks seem greater now than when I originally looked at it. My worry is that lots of PIs are attracted by the brand without realising the degree of risk and the need for patience. If there isn’t an increase in NAV within months of launch, many might bail, and a discount open up. This is more likely with a behemoth than a smaller fund.

P.S. Thank goodness this site is being upgraded. It might be busier were it not so clumsy and counterintuitive.


#20

I didn’t buy it because as others have said at £800m it’s no longer going to be at all easy for it be become what it set out to be, an investor in early stage companies.

If they achieve their 10%pa growth target it won’t be long before this becomes a £1.6b ‘early stage investor’, or a £2.4b fund. It is a ridiculous proposition in my view, especially as it wants to invest only in the UK market.