Lifting the lid on Woodford's controversial Zimbabwe fund holding

Interesting write-up, but it seems an odd investment for an income fund, even though 29.5% of Masawara will only be a small fraction of the £16bn Neil Woodford manages in these two funds.

Even if Woodford believes it is a strong investment, surely it is the kind of investement you would be expecting a natural resources or global emerging markets fund to make?

Tomes have been written about the crazed Mugabe & how he has demolished a proud country - the breadbasket of Sothern Africa - within a decade.This rotten regime has been fully exposed in the local & international press. Therefore any investment in Zhimbabwe is to be well avoided.

The quote from the prospectus certainly doesn't inspire confidence.

Clearly Woodford has an amazing track record, but I do wonder whether whatever gains are to be had won't be outweighed by the possible negative publicity around this investment, worse still if anything does go wrong.

Mr Woodford is a very clever and astute person, so you have to give his ideas some serious thought. However, in a country ruled by a despot, who has no regard for the rule of law, and no sense of decency,(I am talking about Zimbabwe, not the UK!) you would have to tread very carefully. It sounds to me like an out and out gamble. We will see.

Risks don't come bigger than:

It warns: ‘The company cannot guarantee that it will be permitted to have its investment capital returned outside of Zimbabwe, or converted into its operating currency, US dollars, upon divestment of an interest in a Zimbabwean company.’

Caveat emptor. Enough said.

I have just run this past my son who has worked in various African countries including Zambia, Congo and Mauretania. His reply included the word "bargepole" about investing anything in Africa having seen the ingrained corruption and lack of work ethic.

Would I personally invest anything significant in it? Simple answer NO.

Would I every invest in Z|imbabwe with Mugabe in complete control NO

Would I invest a very small amount in a coalition government with M Changeri involved (my spelling I know) - Maybe.... and that is the current situation.

Looking at the stakes quoted in the article 27% of Massawara valued at 15.5 million, does that mean he's invested £4.1 million? (or about 10 x detached 5 bedroom houses in South East Kent) , against a total portfolio of £16.3 billion.....

4.1 million/ 16.3 bill = 0.025% of the portfolio......

Woodford is not naive so I have to ask what assurances has he received and from whom, and was any consideration given?

Yes Zim is a tremendous opportunity, but only after the equivalent of our Mr Brown is removed together with the army and police chiefs and acolytes have been removed from power and influence (legitimately, of course) and law and order restored.

Mugabe is 86 years of age. Zimbabwe will be a different place in 10 years time. When you invest in a fund like this surely it is for the longer term?

“It also underscores the region’s reputation as a territory laden with risk and the threat of crime and corruption.” PARDON threat implies it may happen, what you should have said it is full of CRIME and Corruption.

I am utterly amazed anybody would want to invest in that vile man’s country, because anybody who does condone the foul things that creature has and is doing. Please don’t be hypocritical and say it is for the future when M****e has gone, because you are talking about here and now. So I truly hope anyone who invests in these funds loses the lot.

On an ethical ground I would think strongly about adding to my PLI investment Zimbabwe under Mugabe is trouble I can do without it.

The saying goes. "Birds of a feather flock together"

Looks like Mr Woodford wants to follow in the footsteps of Nicholas Van Hoogstraten (Adolf Von Hessen) The self styled emissary of Beelzebub.

I heard tell that Mugabe's personal physician is Woodford's third cousin....clearly this is a case of insider dealing, a punt on M' timely demise;-) A fund like Masawara should swell tenfold in value as soon as the crows flap their wings....shame it's still gonna be only 0.25% of Woodford's AUM.

Not only an opportunity to invest in Blood Diamonds, but Blood Gold, blood tobacco, Blood Coal.... And tell me, young Cynthia, how did Daddy make enough dosh to send you to such a posh school?

Woodfords is beting on the death of that nutter Mudabe, at 86 is tickets up and a few sharp eyed boys can see the next tomorrow. they cannot openly say we are just treading water until this bastards dead, but that is the truth. The fund will be an excellent investment for anyone with a 8/ 10 time frame.

Look back at Woodford lately not good against others To be this daft he has to have inside knowledge of imminent death

I will think seriously about IP Income fund after reading this.

seriously about selling it that is.

Sounds very odd. I read elsewhere about Woodford's possibly unhealthy involvement with Cenkos, the broker which did the Masawara IPO - equally odd. I was at school with Andy Stewart, the founder of Cenkos many years ago (before he was expelled) - an equally dodgy character. (The firm was named after his favourite racehorse). I think some questions need to be answered.

NW

Don't assume that once Mugabe leaves the scene Zimbabwe will suddenly become a great place to invest. Behind the scenes are the thugs who have mastermined the workings of his oppressive regime. They have so much to lose that they have blocked the democratic wishes of the nation over many years. Expect chaos and bloodletting on a massive scale after Mugabe.

Baffling! A slip of the finger on the keyboard or a misplaced click of the mouse or a pub lunch or ....?

Woodford has rarely been wrong over time. That is what I invested clients money for (when I worked in the investment industry) and I have no hesitation in backing him now. Africa has a large population with a very low economic base (sound familiar?). The investor makes a personal decision, the fund manager has a a tighter brief.