Invesco perpetual high income

talexuser

Back to InvPerpHiInc, it's the ONLY one of my peps which I have not switched since buying 6k something like 17 years ago. It has the odd year of underperformance (one broker sheet has a sell on it now) but has always come back to top performance in the medium/longer term SO FAR.

If you want a fund in the UK income sector for the long term it is as good as any and MAY be better than most in the future.

Usual disclaimers apply.

le_loup

Have held this for over ten years. Have taken the income and made 10.5% annual average return.
But, as others have said, should not be held in isolation.

A_Flock_Of_Sheep

I probable need to see an IFA. There are so many. Le soup what other investments do you hold with this fund as you have it but not in isolation

redbuzzard

Be interesting to see what others say. Inter alia I have some Newton Global Higher Income, some emerging market and Asian investment trusts, and American, European, Japan and Pacific index funds. Would normally be holding more corporate bond fund(s) and mixed funds like IP Distribution, or Henderson Cautious Managed, which I have a bit of, but I am wary of the 'bond effect' having taken the benefit over the last year or two and being inclined to bank it if possible.

I have ramped up the holding of Standard Life GARS significantly and bought some Newton Real Return as pseudo volatility dampers while equities seem to be on an upswing.

I take some comfort from the fact that the mid-sized DB pension fund of which I was a trustee until recently followed a similar approach (on absolute return v. bonds) on the advice of its investment consultants.

I'm aware of departing from tradition and received wisdom; I don't really like the element of trying to time markets, and arguably absolute return funds are unproven. Certainly not advising anyone else here.

le_loup

A_Flock_Of_Sheep wrote: »

I probable need to see an IFA. There are so many. Le soup what other investments do you hold with this fund as you have it but not in isolation

My needs are certainly totally different to yours, so giving a list of my other investments would not be useful. Go to some of the platform sites to see what they recommend as potential investments for various needs.

A_Flock_Of_Sheep

How do you know my needs by listing the cash I have?

le_loup

Suit yourself!

atush

the point is, we don't.

So look for diversification. Into other income funds in other regions, into Emerging markets, smaller companies etc.

Try moneyvator and the Motley Fool.

A_Flock_Of_Sheep

Sorry le loup I didn't mean for that to sound snappy or nasty. I was simply curious.

My needs are - I don't need a house deposit as I have a house and no mortgage, I have a final salary pension brewing.

I have always been a careful or should I say nervous/cautious saver and never dipped into the stocks and shares or investing side because all I have heard is about risk risk risk and you could lose all your money, BUT! Now because the return on cash savings in regular accounts is so poor I am looking at branching out for a better return but would like flexibility of having something that can provide an income where needed but also that the income can be re-invested if I choose that too, When I did a search this fund seemed to come out and appeared well reviewed.

Sorry for any confusion on "tone of voice" there

dunstonh

I have always been a careful or should I say nervous/cautious saver and never dipped into the stocks and shares or investing side because all I have heard is about risk risk risk and you could lose all your money

Risk is not on/off. It is a sliding scale. Everything has some risk. Cash has very little risk of loss (although if you held accounts in Cyprus you may disagree!). However, cash suffers inflation risk and shortfall risk. Invesco perpetual high income is, in isolation of other investments, a higher risk investment. What you describe is extreme risk and much further up the risk scale.

Now because the return on cash savings in regular accounts is so poor I am looking at branching out for a better return

That is why people may start to invest but remember that the fund is capable of a 40% loss in 12 months. If you got a statement and found your investment of £11,280 is now £6700, how would you react?

When I did a search this fund seemed to come out and appeared well reviewed.

It is but it is meant to be held as part of a wider portfolio. Not by itself. What makes you think that UK Equity is going to be the best place to invest each and every year going forward?

The fund is 78% UK Large cap. 16% mid cap and 6% small cap. Since 1999 and out of 13 major investment sectors, the best UK Large cap has managed was 3rd in 2009. 4th in 2004 and 2006 and 5th in 2003, 2007 and 2012. It isnt a sector that you expect to see at the upper end often. Possible yes but more a case of unusual. Yet you are looking to put 100% of your money into such. Where is your Euro Equity, US equity, Far east, emerging markets, fixed interest bonds, property etc?

If you were going to take a punt on UK Equity then many would consider small cap the more suitable for punts. However, if you are going to invest rather than take a punt, then you need to look at using multiple funds and diversify.