Should I stick with Neil Woodford’s funds?
That is the #1 subject on which my clients are currently asking for guidance.
Only time will tell but the fact is that his funds have significantly out-performed the market in the long term, notwithstanding two previous periods of under performance.
All active investment managers will under-perform from time to time. They can only produce out-performance by taking bets against the market and inevitably from time to time they will place the wrong bets in the short term.
Mark Dampier has written a very good article about this which I suggest you read.
What am I doing?
My pension drawdown portfolio is significantly targeted at funds which pay a good level of dividends and Neil Woodford’s fund will remain a significant holding.
My ISA fund is more targeted at capital growth. If I decide to reduce the exposure to dividend paying funds then Neil’s fund may be the casualty but only because the other funds are doing well.
My overall guidance to clients is to stick with the agreed medium/long term strategy and do not allow short term performance/noise to change that strategy.
Most of my clients use the Hargreaves Lansdown platform and have a basic strategy which uses funds in the HL Wealth150 or Core Tracker lists influenced by which funds HL hold in the Multi Manager Fund most closely aligned to their objectives.
If you would like some guidance on how your fund selection stacks up I will gladly take a look and let you have a brief report for a one off fee of £97. This will comprise general guidance and not specific fund selection. Just pop your details in the box below or drop me an email.
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