Invesco Perpetual Income fund

redbuzzard

Come on, Flockers, it's not bad

There was a crash in the middle of that. We bought some at IP Income at 1353.61 on 2/4/09 for herself's ISA. Today's price 2616.82, 93.3% higher.

Have you worked out your annual return yet from your short career in investing? You could probably be the world's most successful investor if you stopped now

grizzly1911

A_Flock_Of_Sheep wrote: »

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" growth

What RB says.

Close to 12% pa average will do me. 8/9% is probably closer to a long run average.

At the end of 2008 I did have a 1 year fix cash bond that gave 5.4% and several since around 3.5 - 4%, but they have dried up this last year. Those rates are pre tax.

The example was really to demonstrate the depth of fall in in unit value through the GFC/ Euro issues and how it has recovered. Who knows how any subsequent fall may impact and what the recovery time would be.

If you want I can show you how a certain single equity bank share performed over a similar period.:eek:

.

JohnRo

A_Flock_Of_Sheep wrote: »

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" growth

Sounds like unrealistic expectations are about to get crushed.

A_Flock_Of_Sheep

JohnRo wrote: »

Sounds like unrealistic expectations are about to get crushed.

Sorry yes in fact that is proper stunning growth - it's £100 I was thinking it was £1000

A_Flock_Of_Sheep

redbuzzard wrote: »

Come on, Flockers, it's not bad

There was a crash in the middle of that. We bought some at IP Income at 1353.61 on 2/4/09 for herself's ISA. Today's price 2616.82, 93.3% higher.

Have you worked out your annual return yet from your short career in investing? You could probably be the world's most successful investor if you stopped now

LOL it was short for a while as I have in the main cashed in. I have over 20k in the holding pot. Have got my IPHI and Japan still going but at the moment I have gone back to the drawing board - waiting the postman to deliver Tim Hales book.

Checking out Bonds and Gilts at the moment to balance the new portfolio out.

I popped the question on another thread but in case it was missed I noticed the M&G Optimal income dropped just 10% during the 0809 crisis - compared to equities that dropped 30% odd. Why was there such a difference in drop between gilts/bonds and equities?

A_Flock_Of_Sheep

Right. Am I bleating up the wrong tree here but does having Gilts/Bonds in a portfolio with Equities act as a gap plug when there is a big drop in equity prices? Softening the blow?

I have charted since the 0809 crisis M&G OI with IPHI and Troy Trojan Income I - and while the equity fund dropped by approx 30% in 0809 the M&G OI rose quite dramatically. Would the M&G OI had a lifting effect on the WHOLE value of a portfolio? Would the amount of M&G OI to do this be proportional to the drop in equities? ie portfolio value of M&G OI 40% rest equities would cushion the 30% drop in equities at the time?

Sorry to ramble!

jamesd

homerhotspur wrote: »

This always seems to be one of the most tipped medium risk funds, even though it is not particularly high in the performance charts.

It's there in part because the manager has got big plays right, like avoiding tech stocks before the dotcom bust and banks in 2007-8. In spite of lots of criticism for it in the pre-bust dotcom period.

The fund is a good one for long term performance until the manager changes. It's a nice major UK fund to join say a global tracker as parts of the core of a retirement portfolio.

It won't be the best one at various times, like during 2009 when there was rapid growth and the fund stayed fairly cautiously positioned. Now it's boosted a bit by the move to income so it's doing a better job of matching the FTSE on the climb and might well beat it during the next dip.

Medium-high to high risk just because it has and will drop by 40% or so during a major drop every ten years or so and by 20% or so every few years as part of the normal ups and downs of the market. Not likely to be any absolute capital loss unless you happen to need to sell at the wrong time.

jamesd

A_Flock_Of_Sheep wrote: »

Am I bleating up the wrong tree here but does having Gilts/Bonds in a portfolio with Equities act as a gap plug when there is a big drop in equity prices? Softening the blow?

Yes. And reducing the growth when equities are doing well, so it's not free.

A_Flock_Of_Sheep wrote: »

I have charted since the 0809 crisis M&G OI with IPHI and Troy Trojan Income I - and while the equity fund dropped by approx 30% in 0809 the M&G OI rose quite dramatically. Would the M&G OI had a lifting effect on the WHOLE value of a portfolio? Would the amount of M&G OI to do this be proportional to the drop in equities? ie portfolio value of M&G OI 40% rest equities would cushion the 30% drop in equities at the time?

Depends on the magnitudes and directions of the movements of each. It's entirely possible for both bonds and equities to drop at the same time even though conventionally they are expected to move at different times.

pqrdef

grizzly1911 wrote: »

Close to 12% pa average will do me. 8/9% is probably closer to a long run average.

It's 9.6% pa. At 12% you'd have £176.

AlwaysLearnin

A_Flock_Of_Sheep wrote: »

Right. Am I bleating up the wrong tree here but does having Gilts/Bonds in a portfolio with Equities act as a gap plug when there is a big drop in equity prices? Softening the blow?

You appear to be at the beginning of your investing journey, with many questions. We were all there once. Hopefully the 'Smarter Investing' book you've ordered will answer a lot of your questions once you've read it, giving you a good understanding of the basic principles, ideas on structures etc