Investors in the Woodford Equity Income fund are facing a crucial decision regarding the redress on offer. The redress, which amounts to a minimum of £180 million, is currently on the table. However, investors would not receive the funds until the middle of next year. The redress scheme requires approval from at least 50% of voters by number and 75% by value. If approved, the scheme would put an end to class actions against Link, the company responsible for managing the interests of fund investors. The Woodford fund was suspended due to illiquid investments, marking the end of Neil Woodford's career [16c7548f].
In addition to the redress decision, the article mentions other investment opportunities and market updates. The Association of Investment Companies (AIC) has identified 20 closed-end funds trading at a discount on the London Stock Exchange. These funds cover various sectors, including technology, private equity, emerging markets, smaller companies, and infrastructure. UK-based equity income funds and trusts are also offering yields higher than cash savings accounts. Several funds and trusts have been identified that yield more than 5%, making them comparable to the best savings accounts available. The article also highlights three recommended funds for Black Friday: Baillie Gifford’s Scottish Mortgage trust, Janus Henderson’s European Smaller Companies Trust, and Baillie Gifford Shin Nippon Ord. Furthermore, the Edinburgh Investment Trust has reported strong performance, outperforming the FTSE All-Share Index. There will be a change in management as James de Uphaugh retires and is replaced by Imran Sattar as Portfolio Manager. Scottish Mortgage Investment Trust, managed by Baillie Gifford, has been a standout performer over the past decade, with its shares increasing by 259%. Despite recent market fluctuations, the trust still has great potential for capital growth. The article concludes with a mention of the Chancellor's plan to sell NatWest shares, the continuation of the freeze on income tax thresholds, shares bought by the world's best investors in Q3, and the quarterly changes to the FTSE 100 and FTSE 250. It also includes Warren Buffett's strategies for making a fortune as a new investor [45c8ad91].
Neil Woodford, the former Woodford Equity Income fund manager, has launched a new blog called Woodford Views. He is presenting himself as an optimistic economic guru and believes there are many good reasons to be cheerful about the UK economy's current state. Woodford argues that the UK's GDP grew by 22% between 2010 and 2023, ahead of major European rivals Germany and France. He also points out that inflation is falling and is expected to come under the target of 2%. Woodford emphasizes the importance of confidence in economic policy and the need for a careful assessment of the UK's strengths to foster growth in areas such as financial services, retail, and technology [5a812a6b].
Charles Hall, head of research at Peel Hunt Ltd, suggests that the UK government should use the proceeds from selling its £7.5 billion ($9.4 billion) share in NatWest Group Plc to set up a sovereign wealth fund to help revive the country’s ailing equity market. Hall proposes that the fund could be a cornerstone investor in IPOs to kick-start the market and attract additional investment from other funds. The London Stock Exchange has suffered from a slump in trading volumes in recent years, with several companies choosing to list their shares on other markets. The UK Treasury aims to offload its entire stake in NatWest by 2026. Peel Hunt's recommendation is based on a research paper from think tank Turning the Page, which was set up to develop policy ideas for rebuilding the UK’s capital markets [2ccbe5df].
PremjiInvest, the family office managing over $10 billion for Indian software tycoon Azim Premji, plans to invest more money into artificial intelligence (AI) companies and develop its proprietary AI investment tools. The company is among the first large Indian asset managers to use AI tools in the private equity space [5ad9c873].
Decarbonization Partners, a joint venture between Singapore's Temasek and BlackRock, has raised $1.4 billion for its first fund, which focuses on companies that can help accelerate the transition to a low-carbon economy [5ad9c873].
Korea's National Pension Service (NPS) will allocate 65% of its assets in risky assets under new long-term asset allocation rules [5ad9c873].
TelstraSuper, Australia's largest corporate superannuation fund, is seeking a merger partner [5ad9c873].
Ping An Insurance Group, HSBC's largest shareholder, voted against the reappointment of departing CEO Noel Quinn as a director [5ad9c873].
The Hong Kong Monetary Authority's Exchange Fund posted an investment gain of HK$54.3 billion ($6.9 billion) in Q1 2022 [5ad9c873].
A development consortium including the National Pension Service (NPS) and real estate manager Hines has received planning approval for a project in London [5ad9c873].
Yellow Umbrella Mutual Aid Fund is looking to hire four managers for a W500 billion ($368.7 million) domestic fixed income mandate [5ad9c873].
The Government Pension Fund (GPF) is increasing investments in gold and oil to mitigate risk and reducing investments in the capital market due to market uncertainties [5ad9c873].
Saudi Arabia's Public Investment Fund (PIF) and BlackRock signed an MoU to establish a Riyadh-based multi-asset class investment platform [5ad9c873].