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Invesco Perpetual Income fund
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homerhotspur
Posts: 260 Forumite
This always seems to be one of the most tipped medium risk funds, even though it is not particularly high in the performance charts.
I have, however, been considering it but am confused regarding the difference between the 2 funds ( income and high income.) They appear virtually identical holdings / performance etc ?
I have, however, been considering it but am confused regarding the difference between the 2 funds ( income and high income.) They appear virtually identical holdings / performance etc ?
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They are extremely similar. Not sure why they both exist really. (EDIT - Grizzly has the answer below - staggered dividend dates - never twigged as we have the accumulation units). I have one and the boss at home has the other because I am indecisive.
You say it is not particularly high in the performance charts. Most people would say it has been a stunning performer. Over time it has done a reasonable job of keeping up with the FTSE on a total return basis, with maybe 2/3 of the volatility. The manager, Neil Woodford, is something of a celebrity.
The funds concentrate on defensive stocks - big, unglamorous companies with good cash flows and dividends. The funds have done so well recently that some think they are not as defensive as they have been - so many investors have favoured defensive holdings in the current market that the shares in the fund don't look as cheap as they did in relative terms - not my opinion or advice, just one of the many views I have read recently.
FWIW, I'm happy to hang on to mine as part of a balanced diet."Things are never so bad they can't be made worse" - Humphrey Bogart0 -
What RB said^^
We have both too.
Ours are accumulation units but the dividend payment dates are 3 months out of line. So if you want income you could get it quarterly, holding both funds, rather than if you take one or the other where it would be half yearly."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
I have the IP High Income fund. It seems to have a good reputation.
It is interesting to see that people who were questioning my holdings of Equity Income Funds the other day including this one also have IP High Income yet it was highlighted that it appeared I had no "strategy"
To quote one: "Your choices of funds look a bit random, with no obvious overall strategy. It would be more usual to start off with a general fund or two"
So I hope you have a "general" AKA "Vanguard Life Strategy Fund" Also.
BTW It seems people think IP High Income is Risky/Volatile.0 -
I have had High Income for 16 years, the only original Pep I've never switched (and added to over the years). Partner has Income which generally has less dividends (at least in the past, not so much now) but growth remains similar (both ACC funds so far). I'm very happy with it.
It is out of favour at the moment during one of Woodford's contrarian defensive periods, as has happened before. It has always come good in the past eventually. Might be a good time to buy if the whole market does not come crashing down soon, but not my advice, and future is certainly NOT going to be the same as past with all this QE etc etc.0 -
A_Flock_Of_Sheep wrote: »I have the IP High Income fund. It seems to have a good reputation.
It is interesting to see that people who were questioning my holdings of Equity Income Funds the other day including this one also have IP High Income yet it was highlighted that it appeared I had no "strategy"
To quote one: "Your choices of funds look a bit random, with no obvious overall strategy. It would be more usual to start off with a general fund or two"
So I hope you have a "general" AKA "Vanguard Life Strategy Fund" Also.
BTW It seems people think IP High Income is Risky/Volatile.
Nothing wrong with it/them (IPHI/I) as part of a balanced portfolio just a risk if it sole or disproportionately weighted.
Vanguards are just a simple cost effective way of getting that balance all in one go, allowing you to add bells and whistles if you want.
I don't have Vanguard BTW. I am not sure everyone else does but us either.;)"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
This always seems to be one of the most tipped medium risk funds
more medium/high as part of a balanced portfolio or high if held in isolation.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
more medium/high as part of a balanced portfolio or high if held in isolation.
I totally agree with this being higher risk - risk of course meaning more prone to volatility??? Not risk you will lose everything and the kitchen sink!
What is the opinion on the Troy Trojan income I fund? During the finacial crisit this appeared to be on the downside by about 20% as opposed to IPHI being downside by nearly 30%0 -
I am looking forward to getting Tim Hales book in the post. I assume this covers creating a "balanced" portfolio?
I have (foolishly or not foolishly) before my reading of books and maybe renew the portfolio cashed in all my funds bar £2.5k in IP HI as it was doing well and my Japan Fund. I have luckily been in the upside on those I cashed in and now have 22k in the holding fund to invest. Incidentally would I get a dividend on the funds I cashed in?
Any suggestion (not advice) for investment that I can consolidate with my reading would be appreciated. Goal being income and potential growth.
AND also thanks to grizzly1176 redbuzzard and dunstonh for support to me here0 -
A_Flock_Of_Sheep wrote: »I totally agree with this being higher risk - risk of course meaning more prone to volatility??? Not risk you will lose everything and the kitchen sink!
What is the opinion on the Troy Trojan income I fund? During the finacial crisit this appeared to be on the downside by about 20% as opposed to IPHI being downside by nearly 30%
To give you a perspective.
In 2006 I put an amount into IPHI call it 100 (3 tranches last one just in 2007).
Values at following statement points.
4/08 100
10/08 91
4/09 81
10/09 92
10/10 106
Today 158
They are accumulation units and did peak at 109 before the crash."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »To give you a perspective.
In 2006 I put an amount into IPHI call it 100 (3 tranches last one just in 2007).
Values at following statement points.
4/08 100
10/08 91
4/09 81
10/09 92
10/10 106
Today 158
They are accumulation units and did peak at 109 before the crash.
So your IPHI if you put £100 in when you did - obviously that is an example - is now worth only £58 more 5 years on. That is ahem - "stunning" growth0
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