The Invesco Perpetual Distribution Fund is AAA-rated (OSBR), and ranked 13th and 7th respectively in terms of performance among the 222 constituents of the Investment Management Association's (IMA) Cautious Managed sector, which demonstrates that the fund has easily outstripped the sector average over both those periods.
Investment in cautious managed funds has proved popular again this year, with sector inflows topping the IMA tables during the second quarter, which continued into the latter part of the year. Testament that investors remain risk averse, but it's also true that they remain on the look-out for reliable alternative income sources. Perpetual Distribution, which was launched in January 2004, is an ideal vehicle to strike this kind of balance. Over the past five years it has achieved a 31.2 per cent return on a 6.12 per cent yield.
The fund aims to achieve a mix of capital and income growth through a portfolio that is composed primarily of UK equities and fixed interest securities; the latter of which are expected to form at least 60 per cent of investments according to the managers' discretion. Currently, the fund is favouring high-yield investment grade bonds from a fixed interest perspective, while identifying banking and financial stocks as desirable in terms of the equity component - 30.7 per cent of the portfolio is currently allocated to equities, with 47 per cent given over to high-yield bonds with low-risk characteristics. The inherent flexibility afforded through this mix of assets also provides an element of diversification.
This fund employs the talents of Invesco Perpetual's fixed interest team, comprising Paul Causer and Paul Read, together with Neil Woodford covering UK equities.
INVESCO PERPETUAL DISTRIBUTION INC (BRDTI) | |||
---|---|---|---|
PRICE | 57.67p | SHARPE RATIO | 0.11* |
SIZE OF FUND | £1.099bn | 1 YEAR PERFORMANCE | 9.29%* |
No OF HOLDINGS | 379 | 3 YEAR PERFORMANCE | 11.81%* |
SET UP DATE | 26 Jan 04 | 5 YEAR PERFORMANCE | 31.18%* |
MANAGER START DATE | 26 Jan 04 | TOTAL EXPENSE RATIO | 1.56% |
BETA | 1.07* | YIELD | 6.12% |
VOLATILITY | 1.00* | MINIMUM INVESTMENT | £500 initial, £100 additional |
TRACKING ERROR | 0.45* | MORE DETAILS | invescoperpetual.co.uk |
Source: Invesco Perpetual & *FT Funds
Top ten holdings (as at 30 September 2010)
Holding | Percentage |
---|---|
Bond issuers | |
Lloyds Banking | 8 |
RBS | 2.9 |
UPC | 1.6 |
Barclays Bank | 1.5 |
Santander | 1.4 |
Equities | |
AstraZeneca | 2.9 |
GlaxoSmithKline | 2.9 |
British American Tobacco | 1.9 |
Reynolds American | 1.7 |
Vodafone | 1.6 |
Credit rating breakdown
Rating | Percentage |
---|---|
AAA | 0.7 |
AA | 1.8 |
A | 5.9 |
BBB | 16.2 |
BB | 19.6 |
B | 14.7 |
CCC | 1.1 |
CC | 0.6 |
C | 1.2 |
Equities | 30.7 |
Not-Rated (High Yield) | 4.9 |
Other | 2.6 |