high income fund?

viny1

does anyone have experience or knowledge of high income funds paying out quarterly income ?? any good or not worth bothering with .. spoke to M&s today they were paying out 4.5 - 5.7 % but with a 1% management fee ,,, any others on the market??

jimjames

Some investment trusts are paying those kind of rates but with lower management fees but share based not bond funds.

Thrugelmir

High income funds have been hit with the demise of dividend income from BP. Many funds are currently paying income out of reserves. So best to look closely at what funds are investing in. Some are switching to Euro stocks others to Convertible Bonds in an attempt to maintain income levels.

At best BP will resume dividends of around 50% of pre disaster levels next year. At this point longer term dividend policy and dividend payouts will be determined by fund managers. So no hurry at present to buy in my view other than to drip feed in.

Jake'sGran

I think No.1 in the Income sector is Artemis Income (or High Income-not sure). In the past I invested in the Invesco Perpetual Income and High Income funds which are very well known. They are not doing as well as they were and I am watching them closely. Have a look at Trustnet to see the ratings for these funds. It gives the growth over 1,3 and 5 years and show their position in the income sector. If you fancy investing, do it through Hargreaves Lansdown who discount all the initial fee for Invesco and probably Artemis Income too.

Linton

If you want income and have say £25K+ to invest, a broad range of FTSE shares paying 5%+ dividend could be worthwhile and will provide continual payments.

If your available funds are not so large there are high paying investment trusts (companies quoted on the stock exchange which invest in other companies) that offer good returns.

One highly regarded investment trust is City of London Investment trust which has increased its dividend (currently around 5%) in cash terms every year for the past 40 years. It pays out quarterly.

talexuser

I would be wary of Artemis Income. Adrian Frost is a good manager since he was at Lazard many years ago, But Artemis has something like a 6% spread so you immediately lose money you don't lose in say Perpetual as an OEIC for example. Naturally you want to invest with a full 5% initial refund from the intermediary but this extra 6% on top means the fund has to work for months just to get back to the money you put in, and the last couple of years many of these funds look little different from a tracker anyway, so you certainly don't want a large spread on top of the annual charges.

dunstonh

But Artemis has something like a 6% spread

Only if you buy direct with no discounts. Even IFAs dont suffer that sort of spread nowadays.

talexuser

dunstonh wrote: »

Only if you buy direct with no discounts. Even IFAs dont suffer that sort of spread nowadays.

Sorry I don't understand, it has something like 6.4% spread between the bid and the offer price. Sure you do not pay the initial charge by going to a discount broker but can a broker allow you to buy at the bid price?

cardsharps

Linton wrote: »

If you want income and have say £25K+ to invest, a broad range of FTSE shares paying 5%+ dividend could be worthwhile and will provide continual payments.

I agree. Save yourself the 1% management fee and split the money betwen Shell, Vodafone, BT, United Utilities, Glaxo, British American Tobacco, etc. That's what the fund manager will do with it anyway. Why give him 1% of your money every year along with all the other charges for doing the bleeding obvious?

cepheus

talexuser wrote: »

Sorry I don't understand, it has something like 6.4% spread between the bid and the offer price. Sure you do not pay the initial charge by going to a discount broker but can a broker allow you to buy at the bid price?

I am always complaining about the lack of transparancy in costs of open ended funds, on some with a full discount, you pay as little as 0.2% spread!

They will do anything but tell you that, or call it a spread.

cashbackproblems

cardsharps wrote: »

I agree. Save yourself the 1% management fee and split the money betwen Shell, Vodafone, BT, United Utilities, Glaxo, British American Tobacco, etc. That's what the fund manager will do with it anyway. Why give him 1% of your money every year along with all the other charges for doing the bleeding obvious?

I agree, if your just investing in the uk market which has alot of research available on it, why not just invest directly in the companies and save yourself the annual 5% fees.

Obviously if you want to take risks and invest in emerging markets, a fund is suitable.