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Provident Financial

lse:edin

#1

Pretty disappointed that the manager retained a significant holding in Prov Fin in the light of today’s news (and 50% SP fall!)

The manager should have been in discussion with the Prov Fin BoD and should have foreseen these problems.

A big black mark against Mr Barnett and his management team IMO…

WD


#2

Passive investment with no board members? Woodford fund equally affected - any material disclosure would have to be put in the public domain.


#3

Companies hold regular investor days. It should have been down to the investors (fund manager teams) to identify that something was going wrong with one of their larger investments. I suspect there will be some very angry fund managers talking to the Prov Fin directors at this moment, EDIN included.

We invest in ITs to allow the managers to do our hard work. A screw-up like this makes the fund managers look stupid and it makes long term investors like me start to look around at other ITs - the UK Equity Income sector isn’t exactly short of funds to swap to…


#4

I couldn’t agree more. Active funds with large equity stake in companies should be looking at getting members on the board, hence my question mark in the previous post, look how this has positively affected BHP price today.
I cant see much reason other than convenience for investing in these funds. Best do it yourself if you have the time and save on management fees.


#5

15p knocked off the NAV in a day - how’s that for destroying value!?

We pay our fund managers chunky fees to avoid fundamental mistakes like Mr Barnett and assistants have just made with Prov Fin.

I’m afraid I’m not happy to be funding half a hub cap on Mr Barnett’s next Porsche, so I’m out of this fund.

Best of luck to those who remain…
WD