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sp dive

lse:edin

#1

sp took a dive shortly after NAV report but don’t see anything negative in the report. Ideas?


#2

Woodford leaving Invesco to set up own rival fund management firm. Of course EDIN board could still keep him as manager as they are independent to Invesco.


#3

Actually guessed that might be the reason but didn’t see any news. Thanks wiganboy.


#4

I can’t see him staying on at Edinburgh if he is starting on his own


#5

I think EDIN investments basically replicated Woodfords Invesco Perpetual fund with the main diff that our costs are lower so I suspect we will be managed by whoever takes over his job;but in theory we could go elsewhere.


#6

I cant see how Woodford can keep his eye on the ball if he is setting up a new company etc. Edin will probably be run by Mark Barnett.


#7

4wingrove
He is not actually ‘at Edinburgh’. He is employed by Invesco who Edinbugh have appointed to manage this trust. Unlike unit trusts, Edinburgh IT can appoint who they see fit to manage the portfolio including any new company set up by Woodford if they see fit. One of the advantages of IT’s over unit trusts and OEICS. That is what wiganboy meant.
I can easily see a number of funds following Neil whatever he does as we saw with Anthony Bolton.

Is this an opportunity to get in at a rare discount?


#8

Suspect it might be a decent entry point, especially if Mark Barnet takes over?.compare Barnetts PLI offering with Edin over the last 3 years?..the yield on Edin is higher, partly because Barnet’s PLI has grown more.

I reduced IP Income to invest in Edin, but have increased PLI by more than EDIN since I have become more aware or Barnet’s talents.

Yes, this is a blow - because of the uncertainty, but I don’t believe it to be a catastrophe, it may be an opportunity.


#9

@4wingrove: “I can’t see him staying on at Edinburgh if he is starting on his own”, why not? I think we could if our board decides to.


#10

from our board
“The Board will review carefully with its manager their proposed future
arrangements for the management of the Company and will make a further
announcement in due course.”

Why I invest in investment trusts. And why not offer it to Woodford in his new company? Would give him a steady fee stream and a good name already, and hardly detract from his new venture efforts now he’s reduced the edin portfolio to <50 stocks - how hard can that be to manage?

az


#11

Depends what the current arrangements for termination of existing contract are?notice period etc. Off the top of my head I don’t know what these are.

PE


#12

Although Neil Woodford, a senior manager, is departing, I presume the people responsible for the routine day-to-day monitoring and management of the trust will remain in place. In many successful organisations we see senior management credited with it’s success, but we all know who really put in the work that made the difference but miss the credit they deserve. Surely an unmissable opportunity to top-up?


#13

Agree with your win, win arrangement: good for Edin, good for Neil Woodford, hence good for Edin. shareholders.


#14

Felt I was too late for the sell opportunity as got the news rather late but have instead bought at 547.70p. See support here and see this as defensive at these levels. May add if falls further or may open a spread with a different investment trust.


#15

Perhaps in retrospect you are right if Neil is appointed we will see a big rebound, so I shall be buying some more over next few days.


#16

This CEF has nothing to do with “support”. Investment trusts trade on a fairly reliable discount or premium to the underlying NAV. This is one of the few occasions in recent history when EDIN has traded a discount to NAV. Sector average is abouut +1%, EDIN has moved from a 4% premium to a 2.5% discount. On this basis alone I rate it a strong buy.

/TP


#17

“This CEF has nothing to do with “support”…”

Is that a pompous remark or what!

Who cares? Bottom price 'll do me!


#18

Absolutely correct in my opinion take-profits,EDIN has had a small premium on its share price due to recent success by Neil Woodford,the bottom line shareprice will be a reversion to typical shareprice for large liquid ITs namely as you suggest a figure around adjusted NAV.
Perhaps we might have a short period whilst buyers catch up with sellers but thats the extent;so perhaps a good home for people to park their Royal Mail profits with a “top up” purchase here.


#19

TX2/takeprofits,

Fortunately the sp does NOT move in line with NAV, nor does it mean there is not opportunity to take advantage of the emotions that run high when an event like this takes place.

Sold EDIN at 571.81 for an approximate 4.5pc net profit.

pasak


#20

…er so what pasak,however in actual fact that is what I pointed out in my last post that there would be a gap between sell off and recovery.

From my point of view and possibly the majority of longer term holders here not worth trading.My average cost is under £3 a share.A buy/sell trade would have landed me with a CG tax bill.