invesco perpetual high income fund acc units

Ark_Welder

moneylover wrote: »

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%

Dividends do not get added to the price, they get deducted when they are paid out. When a fund receives income, the value of the fund's assets increases and the price of both income and accumulation units increase to reflect this. When the dividend is paid out on the income units, the price for these is quoted ex-dividend and falls by the amount of the dividend per unit. However, dividends are not paid out on accumulation units - dividends are retained in the fund's assets - so the price per unit does not fall.

le_loup

No hurt intended. I don't think you are reading the very good replies you are receiving. But as you are so easily wounded, I'd better not repeat my previous explanations.

Linton

moneylover wrote: »

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%

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Because in an ACC fund dividends are continuously being received from the investments and continuously reinvested and so are continuously included in the fund price. For an ACC fund nothing special happens on the day that the INC equivalent pays a dividend.

moneylover

Linton wrote: »

Because in an ACC fund dividends are continuously being received from the investments and continuously reinvested and so are continuously included in the fund price. For an ACC fund nothing special happens on the day that the INC equivalent pays a dividend.

Thats it! That explains it so clearly, I thought I was going mad as I just couldnt get it. I can see that Le Loup, for example, was telling me this but I didnt grasp it as I didnt understand that it was a continuous process adding the divi not just a one off. This 100% answers my main question and all my kind helpers can breathe a collective sigh of relief and consider this part of the thread closed!

However, here is my original question again, if anyone can briefly answer parts 2 and 3....

I have been looking at the fundsheet for Invesco Perpetual High Income 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! (this now answered, thank you )
Also, I see that the fund has about 3.5% invested in Tesco. Again, this didnt seem to affect the unit price around the date the price of Tesco tanked but I wondered how much it may actually affect the performance of the fund this year. Presumably there are too many variables to worry about this?

Lastly, how can you see the full holdings of a fund or are they not divulged on an ongoing basis? Perhaps in Annual Report?

bigadaj

You do seem to be looking at things in detail, though this can mean missing the wood for the trees. In your tesco example than a 10 per net drop would reduce the fund value by 0.35 per cent, which would be cancelled out if the other 96.5 per cent increased by less than 0.5 per cent.

[Deleted User]

Hi,

moneylover wrote: »

Lastly, how can you see the full holdings of a fund or are they not divulged on an ongoing basis? Perhaps in Annual Report?

have a look here, across to the mountain you will see downloads, click on Managers Report-Interim (seems to be the latest), download, then scroll down to page 22.

I think you will find the breakdown there that you are looking for.

le_loup

moneylover wrote: »

Thats it! That explains it so clearly, I thought I was going mad as I just couldnt get it. I can see that Le Loup, for example, was telling me this but I didnt grasp it as I didnt understand that it was a continuous process adding the divi not just a one off. This 100% answers my main question and all my kind helpers can breathe a collective sigh of relief and consider this part of the thread closed!

Whew!
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