Invesco

Huggy_Bear

Hi I'm trying to understand my current investments and make a bit more of an informed choice.
I've had an Invesco High Income Fund (UK) for many years and looking at the fund objective it states this


"The Fund invests at least 80% of its assets in shares of companies incorporated, domiciled or carrying out the main part of their economic activity in the UK"


I am a complete novice, so is this a high or low risk?


I am looking at a Vanguard 40% Equity Fund - which says is a moderate risk. Also I'm looking at HSBC Global Strategy


My other fund is the doomed Woodford which I'm not sure what to do with yet :eek:

Wildsound

How did you come about being invested in these funds? Are there other funds you are invested in?

In what context are they invested (e.g. Pension, Investment Account, Stocks & Shares ISA etc..)

ColdIron

Invesco High income is a 100% equity fund where those shares are mostly in one geography, VLS40 only has 40% equities and 60% in bonds. invested globally. Chalk and cheese. To put it into context Trustnet show an FE Risk score of 89 and 48 respectively where the FTSE100 is a score of 100

Huggy_Bear

Hi, they are stock & shares ISA. My dad set the invesco one up for me years ago in the days of Woodford, its done ok over many years which I've used for a deposit on a house. The remaining balance is just sat there as a contingency.


I opened the HL Woodford Fund, like many people probably thinking it will do well, which it did in the early days.


I have other savings in premiums bonds, savings acc (Marcus, Nationwide) and fixed term ISAs.


I'd like to get a better return on my funds so looking at Vanguard

Huggy_Bear

ColdIron wrote: »

Invesco High income is a 100% equity fund where those shares are mostly in one geography, VLS40 only has 40% equities and 60% in bonds. invested globally. Chalk and cheese. To put it into context Trustnet show an FE Risk score of 89 and 48 respectively where the FTSE100 is a score of 100

I think I'm after chalk and cheese so thats ok.
I dont understand the second part so I'm on google

eskbanker

Huggy_Bear wrote: »

I think I'm after chalk and cheese so thats ok.

What are your investment objectives, as it's impossible to know the best route without knowing the destination?

Chalk doesn't taste very good in a sandwich and try writing on a blackboard with cheese....

Moe_The_Bartender

Huggy_Bear wrote: »

Hi, they are stock & shares ISA. My dad set the invesco one up for me years ago in the days of Woodford, its done ok over many years which I've used for a deposit on a house. The remaining balance is just sat there as a contingency.

It may have been a good fund at one point but it's been a dog for years and is ranked 251 out of 255 in its sector over the last 5 years. Your money would have done better hidden under your mattress.

You need to work out what your objectives are before making any decision other than to sell the Invesco fund. If you may need the money in the short term, a cash ISA might be the answer.

ColdIron

As a novice investor you might not want to get into the mechanics of FE risk (volatility) ratings, it was intended as an easy to grasp illustration of the large difference between the two funds, the lower the number the less risk or volatility, with the FTSE100 as a baseline

In years where markets are generally rising, such as we have seen, you would expect, as a generalisation, 100% equities to comfortably outperform funds with more than 50% bonds. However IHI has been having its own problems for several years and has only returned 10% over 5 years compared to VLS40 with a 40% return (so don't confuse risk with return)

I had the (ex-Woodford) IHI for several years but sold up a couple of years ago. So with these two particular funds if you are looking for lower risk or volatility the Vanguard fund would tick the box and, perhaps paradoxically, likely provide better returns. Normally reducing risk does not go hand in hand with higher returns

If you want to read about FE Risk scores ...
https://www2.trustnet.com/learn/learnaboutinvesting/FE-Risk-Scores.html

Huggy_Bear

Moe_The_Bartender wrote: »

It may have been a good fund at one point but it's been a dog for years and is ranked 251 out of 255 in its sector over the last 5 years. Your money would have done better hidden under your mattress.

You need to work out what your objectives are before making any decision other than to sell the Invesco fund. If you may need the money in the short term, a cash ISA might be the answer.

I have money in fixed term savings so I'm happy for this to be a longer term investment (5+ yrs) but I dont want to take a huge risk. I am only working p/t at the moment so my fixed term savings are there to support my income if I've not secured a f/t job in 12 months.



Hence why I am a bit cautious.

I've not been well the last few years so my investments have not been my focus, but I'm trying to understand what I currently have.



Thank you

Huggy_Bear

Evening, since my previous post I've been thinking about my goals for my investments and tried to put together my first portfolio. As I've said I am a complete novice so any advice is greatly appreciated (but may have to use the old google if unfamilar terms are posted)

So my goals are 1) to diversify my current investments which are in low performing funds incl Woodford :eek: and 2) to give a relatively safe return over 5+ years 3) I have investments in 1-2 yr fixed terms. 4)

so my thoughts are

VLS 40% Equity (35%)
Invesco Tactical or Corporate Bonds (30%)
Index Tracker Fund (15%)

Fundsmith Equity (10%)
Lindsell Train Global Equity (10%)

80% in low moderate risk and 20% in higher risk - well at least that is my understanding

Would I be better reducing the number of funds? Total being invested is 40k

Many thanks

[Deleted User]

Willl the "Index Tracker Fund (15%)" be a track one index fund (eg HSBC FTSE 100 Index Fund Accumulation) or a global index fund (eg Fidelity Index World Fund Accumulation)?