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what do people think of UK Income funds at the moment?

edited 30 November -1 at 1:00AM in Savings & Investments
4 replies 740 views
mr_fishbulbmr_fishbulb Forumite
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edited 30 November -1 at 1:00AM in Savings & Investments
Specifically Invesco Perpetual High Income? Seems to have consistently beaten other income funds (Rathbone & Jupiter).

Top ten holdings are:

Reynolds American Inc
British American Tobacco PLC
BP Plc
GlaxoSmithKline PLC
National Grid Plc
Imperial Tobacco Group PLC
British Energy Group PLC
Vodafone Group Plc
BT Group PLC
Tesco PLC

Lots have big interests abroad and others don't seem like they will be affected too much by a UK downturn.

Any thoughts? Many thanks

Replies

  • PrimrosePrimrose Forumite
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    I have a disproportional chunk of my ISA investments in UK income funds, with the income being reinvested. Most of them have served me well over the years and as they're held in the Hargreaves Lansdown Vantage Scheme, I receive regular reports on their performance, and swap any poor performers for others. I'm a great fan of Neil Woodford and the Perpetual High Income Fund and it seems to be one of the favourites that most IFAs recommend. I just wonder whether one day it will become too big to administer. However, it seems to me that one can get as good returns on Equity Income Funds by reinvesting the dividends if you have a good fund manager who knows how to select companies who are consistently trying to increase their dividends as you can from investing in different kinds of Growth funds. No doubt somebody on here will soon disagree with me. However, having said that, I'm not sure that any UK funds will perform terribly well over the coming 12 months.
  • mr_fishbulbmr_fishbulb Forumite
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    Primrose wrote: »
    I'm not sure that any UK funds will perform terribly well over the coming 12 months.
    That's what I was wondering, otherwise I would have no problems going into it.

    I'm hoping that most of those companies will have a big enough income from overseas that they won't be affected by our downturn.
  • You might wanna consider Neptune Income which allows up to 20% to actually be invested in non-UK companies.
    http://www.h-l.co.uk/fund_research/security_details/sedol/3231551.hl

  • purchpurch Forumite
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    Top ten holdings are:

    ...and if you were building your own 'defensive' portfolio of Stock to hold currently those 10 company's would no doubt feature highly in your choices

    I would expect most top UK Equity Income funds would feature most of, if not all of those particular 10. It's the smaller holdings of each particular fund that causes the 'under' or 'over' performance.
    consider Neptune Income

    As usual with Neptune they have a particularly 'aggressive' style of investing, which served the fund well recently............a good choice IMHO
    'In nature, there are neither rewards nor punishments - there are Consequences.'
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