Invesco perpetual high income

A_Flock_Of_Sheep

Hi does anyone here have this investment? It appears to have performed well. Any comments welcome

dunstonh

Hi does anyone here have this investment?

Almost certainly. It is very commonly used for the UK equity allocation part of a portfolio

A_Flock_Of_Sheep

I am thinking of investing an isa allowance into this. I assume any gain and income would be tax free.

dunstonh

A_Flock_Of_Sheep wrote: »

I am thinking of investing an isa allowance into this. I assume any gain and income would be tax free.

income is taxed at source and not reclaimable but you would not be subject to any further personal taxation. There is no CGT.

The fund is not designed to be held in isolation. It is a single sector fund focusing on one niche area. It is meant to be held in conjunction with other single sector funds focusing on the other investment areas to provide diversification. If this is the only fund you intend to hold, that would make it quite a high risk option as you are putting all your eggs in one basket an one investment style that will have good periods and bad periods during the economic cycle.

Will you be holding other funds or just this one?

A_Flock_Of_Sheep

I have at the moment £30k in premium bonds about 15k in a cash isa and £15k in a index linked savings cert about 8k in a nat west savings e saver with bonus rate.

redbuzzard

A_Flock_Of_Sheep wrote: »

I am thinking of investing an isa allowance into this. I assume any gain and income would be tax free.

Yes, or as tax free as you can get anyway. No further tax on dividends and no CGT. Bond income is tax free.

I have some of the Income, and similar High Income funds, a big chunk of my ISA and pension funds in fact. In 2009 I also put a lump contribution into the index, which I have just switched some of to the Income fund. The growth has been very similar - the Income/High Income funds have done a good job of keeping up with the index with lower volatility - if you look back they have sometimes lagged a bit, being weighted to broadly defensive shares, but the reinvested yield has dragged them back over time.

I fully subscribe to the view that past performance alone is no guide etc., but for the moment I am happier with these than the tracker, my devotion to Tim Hale notwithstanding.

Just my choices, not advice.

A_Flock_Of_Sheep

The index linked account is due to come out soon I was thinking of putting 11k isa allowance into this fund

redbuzzard

A_Flock_Of_Sheep wrote: »

I have at the moment £30k in premium bonds about 15k in a cash isa and £15k in a index linked savings cert about 8k in a nat west savings e saver with bonus rate.

The 'interest rate' on premium bonds is 1.5% averaged across all bonds held. That's £450 a year on £30,000. Most people will receive less, because a small number of people receive much larger prizes.

Tax free and 'safe' though :-)

MSE premium bond calculator

atush

Personally, I see you as cash heavy and you would be better off investing in Equities. Just not one fund, I'd spit my money into at least 4.

you haven't mentioned if you have a pension either. That could use up some of that premium bond money sitting there doing almost nothing.

JohnRo

atush wrote: »

That could use up some of that premium bond money sitting there doing almost nothing.

Barring a substantial win it's sat there doing less than nothing when you look at it from the perspective of rampant currency devaluation and a pending inflation explosion that the BoE have established and look set to continue inflicting on everyone.

redbuzzard

JohnRo wrote: »

Barring a substantial win it's sat there doing less than nothing when you look at it from the perspective of rampant currency devaluation and a pending inflation explosion that the BoE have established and look set to continue inflicting on everyone.

Completely agree. No worse than a taxable savings account, plus the slim chance of a decent win but if the mission, as mine is, is to maintain the real value of savings it's not doing the job.

I'd incline to hang on to/roll over the index linked savings cert, given some cash is sensible and at least that won't be wiped out. I have £30k there from maxing the last issue for the two of us, and I would have taken more had it been available.