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Income & Growth
Posted: 09 February 2013 10:20:44(UTC)

Joined: 27/01/2013(UTC)
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Just to stir the pot:

Two ITs I've held for several years, performance over past year 8 Feb to 8 Feb:
Henderson High Income risen 18.4% yielding 5.6%
Perpetual Income & Growth risen 16.1% yielding 3.27%

And three on my watchlist of candidates:
Chelverton small cos dividend trust risen 22.3% yielding 5.5%
Finsbury risen 24.8% yielding 2.17%
Scottish American risen 6.47% yielding 3.97%

And also on my watchlist one for "growth"
Polar Capital technology risen 6.3% yielding 0%

FTSE 100 index for same period rose 6.24% (not as benchmark, obviously, but as rough reminder)

Hmnnn..... OK, this is a tiny sample (but one I'm personally interested in) & I'm sure that of the many other ITs there would be examples of all kinds of combinations. But it seems to me that the search for income of late has meant that funds/trusts oriented towards maximising income have generally done better for investors than those going for a 'growth' that may have been there in earlier years but is now more elusive. To the extent that the growth in capital value of higher-yielding trusts has matched or exceeded many trusts whose aims are 'growth', period.

Then there's the glory of compound interest....

Are we seeing investors returning to more traditional investment values?
6 users thanked Micawber for this post.
lynne shaffer on 10/02/2013(UTC), Blind Jack on 11/02/2013(UTC), Rosemary Pettit on 11/02/2013(UTC), Guest on 11/02/2013(UTC), Powerful Pierre on 11/02/2013(UTC), Martina on 12/02/2013(UTC)
Jolanta Nowak
Posted: 11 February 2013 17:41:14(UTC)

Joined: 27/03/2010(UTC)
Posts: 2

H&L is pushing very hard at the moment Invesco Perpetual Hight Income both accumulation and yield option.

Does anybody have this fund? Are you happy with performance?

Posted: 11 February 2013 18:53:54(UTC)

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Yes, Mrs Micawber has held this OEIC (the accumulator) for a number of years and it has done steadily well, although like them all it suffered from the 2008/9 crash. I note a few comments in the financial press lately suggesting it may be going out of fashion, but it fits the continuing pattern of capital growth following yield (especially now in times of subdued growth) noted above. I see it is now yielding about 3.5%

You can get about 4.6% in an ishares ETF for FTSE high dividend yield....
Sille Billy
Posted: 12 February 2013 09:38:37(UTC)

Joined: 19/07/2012(UTC)
Posts: 1

I have held Invesco's Funds for some years, and have been consistently delighted.
This is of course an enormous fund, but have to my knowledge produced steady returns, and a good dividend which works for my family and I.
Posted: 12 February 2013 11:20:03(UTC)

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Neil Woodford had a bit of bad press following the publication of the Sanlam report about two weeks ago, in which he was 'demoted' from the white list to the grey list, and I think there was even a 'sell' recommendation applied.
Then, the High Income fund hit the 25 year anniversary mark and everyone stepped forward (particularly HL) to remind us he is the UK's most successful fund manager.
I held IP Income since I started investing in about 1997, investing monthly over the whole period and it has delivered good, steady performance. I recently sold out taking a very healthy profit, but still have a much smaller amount in IP High Income.
For the long term cautious investor, my opinion is that these funds are a good bet, especially when markets are suffering and especially if complemented with income funds with a different style - Chelverton, Unicorn, JOHCM etc. The IP funds have not been near the top of the performance tables recently.
Edinburgh Investment Trust is another way to access the skills of Neil Woodford, I believe that the ongoing charge is cheaper than the open ended funds, even with the performance fee, but do your own research.
In addition the relatively modest amount I have invested in IP High income, I currently invest in Unicorn, Artemis, Newton Global Higher Income and Newton Asian Income.
1 user thanked TJL for this post.
Martina on 12/02/2013(UTC)
Posted: 13 February 2013 15:57:40(UTC)

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Invesco Perpetual!! experience.

On April 9th 2011, at exactly the same time, I made two identical investments in 'European smaller companies' funds. £10000 each into Invesco Perpetual and Threadneedle.

Today I checked on them. The Threadneedle euro smaller co's is standing at £12,262, nice profit, whilst the Invesco Perp euro smaller co's is showing a LOSS at £9686!

Don't talk to me about IP. As the child said...look at the King, he has no clothes!
Posted: 13 February 2013 16:19:51(UTC)

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Another example of Invesco Perpetual 'dog funds'

Again, on the same day and time, I bought into IP,s emerging countries fund and the First State global emerging market leaders fund, this time £15000 in each.

I checked this morning and the First State Leaders fund is standing at £17873 almost 20% profit, whilst the IP emerging countries fund is showing a LOSS at £14797!

No more Invesco Perpetual for me!

Cheat me once..shame on you, cheat me twice...shame on me!
Clive B
Posted: 13 February 2013 16:49:41(UTC)

Joined: 25/11/2010(UTC)
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What lead you to invest in the IP funds in the first place, and why have you stayed with them so long if they're clearly lagging others in the same area ?

Not meant as a criticism. Rather, I try to understand how others view selection/selling of funds.
Posted: 06 April 2013 06:45:33(UTC)

Joined: 06/04/2013(UTC)
Posts: 2

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