Invesco Perp Income Vs Invesco Perp High Income

ruperts

I'm looking to add one of the above funds to my monthly drip feed line up. Money will continue to be added monthly for the forseeable future (10+ year time frame for holding) and all dividends will be reinvested.

So, what's the difference between the two? Both seem to be very similar in terms of holdings. Has that always been the case? The near identical performance history suggests so.

I'm nearly making my decision based on the fact that iii tells me that high inc has a TER of 1.76 whereas income's TER is 1.68. There must be another difference somewhere? Something to do with dividends maybe?

talexuser

I've had Hi Inc since peps in the mid 90's, and it is the only fund I have never switched, the periods of relative underperformance have paid for themselves in the long run. It was outperformed by Jupiter Income in the days of Littlewood, but not by any income funds since then in the long term.

I also put my mother in Inc at around the same time, and kept that one too. The total perfomance when reinvested has been similar, Woodford has been a good manager, particularly looking at the size of the funds now. Depends if you want to take the dividends any time soon?

ruperts

talexuser wrote: »

I've had Hi Inc since peps in the mid 90's, and it is the only fund I have never switched, the periods of relative underperformance have paid for themselves in the long run. It was outperformed by Jupiter Income in the days of Littlewood, but not by any income funds since then in the long term.

I also put my mother in Inc at around the same time, and kept that one too. The total perfomance when reinvested has been similar, Woodford has been a good manager, particularly looking at the size of the funds now. Depends if you want to take the dividends any time soon?

Yes I like what Woodford has to say, and he seems to have the results to back himself up. My only worry is that I might be jumping on the bandwagon a little too late. Time will tell.

No plans to take the dividends at all. So is high inc basically the same but with a higher dividend payout? In that case I'd be better off with inc I would of thought, since it has the lower TER.