invesco perpetual high income fund acc units

moneylover

I have been looking at the fundsheet on H-L. The dividend date was 1 Jan but when I look at the historical prices the acc price doesnt seem to have moved upwards to reflect the dividend. So how do you get your dividend if you have accumulation fund rather than income? Do you get more units added? Confused!

Also, I see that the fund has about 3.5% invested in Tesco. Again, this didnt seem to affect the unit price but I wondered how much it may actually affect the performance of the fund this year. Or are there too many variables to worry about this?

Lastly, how can you see the full holdings of a fund or are they not divulged.

http://investor.invescoperpetual.co.uk/portal/site/ipinvestor/template.PAGE/fundscentre/latestprices/historic/?javax.portlet.tpst=a1903f2c60b7d191b9114410f14bfba0&javax.portlet.prp_a1903f2c60b7d191b9114410f14bfba0_form-submit=true&javax.portlet.begCacheTok=com.vignette.cachetoken&javax.portlet.endCacheTok=com.vignette.cachetoken

xylophone

http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=PPHI&univ=U&typeCode=FPPHIA&pagetype=dividends
http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/i/invesco-perpetual-high-income-accumulation
http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/i/invesco-perpetual-high-income-accumulation/charts Use the "Add to chart" function to run the inc against this acc chart
http://monevator.com/2011/09/06/income-units-versus-accumulation-units-difference/

[Deleted User]

Hi,

ex dividend date was 1st Jan, but not paid until 28th Feb.

dunstonh

but when I look at the historical prices the acc price doesnt seem to have moved upwards to reflect the dividend.

how do you explain the unit price on the ACC version being higher than the INC version then?

o how do you get your dividend if you have accumulation fund rather than income?

its reflected in the unit price.

Do you get more units added?

Only if you have the INC version and reinvest the distributions to buy more units.

le_loup

acc units include the dividend value which is a constantly growing sum ... it is included in the assets of the underlying companies. When a dividend is declared, the value of the dividends is removed from the inc units because that is now a liability to the fund/company. With acc units the dividend is not removed.
That is why the price/value of acc units is higher than inc units because the dividends have been reinvested. You will see the price od inc units fall on the ex-dividend date.

moneylover

Yes, I thought that the acc version of fund goes up because dividends are added and you have all confirmed that. BUT the reason I posted is because the dividend date was 1 Jan and the price of the fund didnt seem to go up- I posted the link to historical prices. Here it is again
http://investor.invescoperpetual.co....tte.cachetoken So I thought that perhaps I was wrong that the dividend is added with an accumulation fund. So why didnt the price go up? I know as FrugalMacdougal posted that the dividend isnt paid till end of February but that isnt anything to do with it, is it.
Help!

Ark_Welder

Dividends are not added, they are retained. Think of the shares in a single company: dividend is declared, and on the ex-dividend date the share price drops by the amount of the dividend, and is paid out at a later date. The same happens with income shares/units. But with accumulation shares/units the dividend is retained so the price does not drop.

If you look at the prices for both accumulation and income units for 30/12/11 and 03/01/12 then you will see that the price of the former increases but the price for the latter decreases. This decrease is the result of the income units moving to an ex-Div basis.

moneylover

Ark_Welder wrote: »

If you look at the prices for both accumulation and income units for 30/12/11 and 03/01/12 then you will see that the price of the former increases but the price for the latter decreases. This decrease is the result of the income units moving to an ex-Div basis.

Sorry to be persistent but .......
I did look at the figures, the price is barely different - I understand the principle but the price doesnt reflect the dividend surely? The FTSE went up from 5572 to 5699 according to yahoo finance so it wasnt that 3 Jan was a bad day on the stock market. My figures are taken from the Invesco website - fund is high income acc.
5.137 on 29/12/11 5.16 on 30/12/11 5.208 on 03/01/12 5.247 on 4/01/12

le_loup

Read again my post #5.
With no market change, the price of the inc funds fall, the acc units stay the same.
Funds are valued at 12:00 midday the yahoo price will show market close.
You have to accept that what we are telling you is correct. Why would we lie?

Ark_Welder

moneylover wrote: »

Sorry to be persistent but .......
I did look at the figures, the price is barely different - I understand the principle but the price doesnt reflect the dividend surely? The FTSE went up from 5572 to 5699 according to yahoo finance so it wasnt that 3 Jan was a bad day on the stock market. My figures are taken from the Invesco website - fund is high income acc.
5.137 on 29/12/11 5.16 on 30/12/11 5.208 on 03/01/12 5.247 on 4/01/12

The fund is not an index tracker so it will not move by exactly the same amount as the index on a given day.

Unlike the accumulation units, the price of the income shares did fall on 3rd January to reflect the fact that these were moving to an ex-dividend basis, the income to be paid out on the 28th February. Why would income units fall in price but accumulation units rise in price?

moneylover

Ark_Welder wrote: »

The fund is not an index tracker so it will not move by exactly the same amount as the index on a given day.

Unlike the accumulation units, the price of the income shares did fall on 3rd January to reflect the fact that these were moving to an ex-dividend basis, the income to be paid out on the 28th February. Why would income units fall in price but accumulation units rise in price?

Yes, thank you, I do know the fund is not an index tracker. I mentioned the index only to indicate the fact that the market didnt drop on 3/1/12 the day that the High Income Fund apparently included the dividend. If the ftse had gone down dramatically on that date I would have assumed that thatwas what had affected the fund and therefore that was why I couldnt see the divi reflected in the price. But the market went up not down.

Essentially the dividend did not affect the fund price on 3/1/12 if that is when it was added. And I am still trying to understand why not as it was about 3.7%

Le Loup your post is a little hurtful. Of course I don't think anyone here would lie. I have had enormous help on these boards over several years and in turn have tried to help others as you can see from the thanks I have been given. I accept totallly how income and acc funds differ from what I have been told by several in this thread including yourself - I am not disputing the rightness of the posts in that way. I am simply trying to understand why the dividend does not appear to be reflected in fund price and I havent had an answer to that. Maybe I will have to ask the fund's administrators but I have had such good and intelligent answers always from this board that it seemed the first and logical place to ask my questions.