Invesco perpetual high income

le_loup

Try these two as well:
http://www.chelseafs.co.uk/research/
http://www.hl.co.uk/funds/wealth-150

jamesd

So, lets start by looking at your risk tolerance. Can you handle a drop in value of 40-50%? If no, that eliminates using 100% of the money for the Invesco Perpetual High Income fund and eliminates trackers on almost all developed stock markets, as well as the less developed ones. You deal with that by adding in some other investments that move up and down less. Like commercial property funds, or, in times when there is not any sign of a bubble in bond prices, using bond funds.

Can you handle a 10% drop? To get that low you need to have a high percentage of the money in savings accounts.

How about 20%? That eliminates share-based investments for around half of the money but still gives you options.

At 30% there's room for more bond use instead of being heavy on the cash side.

Emerging markets and natural resources funds can be expected to drop 70-80% in a bad year so if you can't handle that you need to be careful about how much you use in your mixture.

As a core investment you might consider 30-50% in a tracker fund that tracks either the MSCI World or FTSE World index, both in versions that exclude the UK (ex UK in their names).

melbury

Does this fund physically pay out dividends quarterly rather than reinvest?

I am just interested because I am thinking of investing in an income fund due to the dire rates on offer from the banks and building societies. On looking at some income funds they appear to pay out more in annual interest than you can get on a savings account.

dunstonh

Does this fund physically pay out dividends quarterly rather than reinvest?

It can do either.

I am just interested because I am thinking of investing in an income fund due to the dire rates on offer from the banks and building societies. On looking at some income funds they appear to pay out more in annual interest than you can get on a savings account.

It doesnt pay interest. It has an income yield. However, be aware of the points already made on this thread. A savings account may be poor but it will retain its value (subject to inflation). This fund can lose 40% in a short period potentially.

ColdIron

melbury wrote: »

Does this fund physically pay out dividends quarterly rather than reinvest?

The Accumulation version reinvests, the Income one pays income Bi-annually

joerugby

You should expect dividends from this fund to go up and down - they went down last year

jamesd

If you want interest you'll need to look at bond or maybe commercial property funds. Distributions paid by the rest are usually dividends. Same money, just classed differently and this makes a difference if they are held outside an ISA because of differing tax treatment. Which is irrelevant inside an ISA.

If you just want an income fund that pays regularly you might look at Invesco Perpetual Distribution (monthly payouts of "interest", available in either income or accumulation units, the income ones pay it out, the accumulation ones add to the value of the units) or Invesco Perpetual Monthly Income Plus (monthly payments of "interest").Monthly Income Plus has more bonds in it than Distribution.

Interest is in quotes because both have their income classed as interest but both use a mixture of interest and dividends, just enough of the former for the whole to be classed as interest.

redbuzzard

joerugby wrote: »

You should expect dividends from this fund to go up and down - they went down last year

Do you mean the yield went down, because of the unit price increase, or that the £income per unit went down?

The unit price went up 15%-20% IIRC (I haven't checked), divis won't have gone up anywhere near that much but I'd guess they went up, and the composition of the fund won't have changed that much?

EDIT: I'll answer my own question, you're right - the last two divis totalled 12.622p. the previous two 12.788p. Didn't expect that.

A_Flock_Of_Sheep

Thanks everyone this has been most enlightening. I did not realise that one can split the c£11k ISA allowance amongst different funds. I have been doing a lot more research from your advice and using the H&L website.

I have been putting together a preliminary portfolio using the ISA allowance for this year. I would like to get something sorted this side of the tax year so I have a fresh allowance in a weeks time or so.

I have mixed the portfolio I have been messing with using steady/defensive and regular income. It has been VERY VERY interesting and quite a bit of fun researching these this afternoon. Here are some I have considered:

Artemis Strategic Assets (Retail) Accumulation 25%
Troy Trojan Class I Accumulation 25%
Invesco Perpetual High Income 25%
Newton Real Return Class A Income 25%

None of these have been invested in - Still researching!!!!

Totton

Does this fund physically pay out dividends quarterly rather than reinvest?

IP High Income pays out twice a year, if you want the dividends, a useful option is to also buy into IP Income and collect the dividends at different times. IP High Income pays out in Feb/Aug whilst IP Income pays out May/Nov iirc