Invesco Perpetual High Income is run by one of the UK's best known fund managers, Neil Woodford, who over the years has gained a tremendous reputation for consistently strong returns.
Invesco High Income is a defensive fund investing mostly in shares. This bias means that occasionally its returns will trail a strongly rising market, as was the case in 2009, when it avoided cyclical stocks that were rallying. However, in difficult years such as 2007 and 2008, its returns were much better than the market. And its long-term record is very good; has outperformed the FTSE All-Share in 17 out of 21 discrete calendar years. For more on Neil Woodford's track record, see . Also, many market commentators believe that defensive equities are set to outperform the market; see .
Invesco Perpetual High Income aims for high income together with capital growth, so is not the UK equity income fund with the highest yield, but it has some of the best total returns.
Mr Woodford selects stocks by combining his views on economic and market conditions with a valuation-driven assessment of each company. His identification of long-term themes usually results in aggressive sector weightings relative to the FTSE All-Share index and the peer group.
A downside to this fund is its size as being a significant shareholder in a number of companies takes up a good deal of Mr Woodford's time, while the fund may not be able to buy a stock if it is too small to be bought in sufficient size.
INVESCO PERPETUAL HIGH INCOME No Trail Inc NAV (BRIHII) | |||
|---|---|---|---|
| PRICE | 89.29p | SHARPE RATIO | 0 |
| SIZE OF FUND | £11.2bn* | 1 YR PERFORMANCE | 22.16%* |
| No OF HOLDINGS | 107* | 3 YR PERFORMANCE | 13.86%* |
| SET UP DATE | 06-Feb-88 | 5 YR PERFORMANCE | 36.88%* |
| MANAGER START DATE | 06-Feb-88 | TOTAL EXPENSE RATIO | 1.69%* |
| TURNOVER | 30.21%* | YIELD | 3.76% |
| VOLATILITY | 4.57 | MINIMUM INVESTMENT | £500 |
| TRACKING ERROR | 3.13 | MORE DETAILS | www.invescoperpetual.co.uk |
Source: Investors Chronicle, *Invesco Perpetual.
Performance data as at 20 June 2011.
Top ten holdings as at 31 May 2011
| Holding | Percentage |
|---|---|
| AstraZeneca | 8.50% |
| GlaxoSmithKline | 7.71% |
| Reynolds American | 6.83% |
| British American Tobacco | 5.71% |
| BG | 5.14% |
| BT | 4.74% |
| Vodafone | 4.72% |
| Roche | 4.32% |
| Imperial Tobacco | 3.77% |
| Reckitt Benckiser | 3.73% |
Sector breakdown
| Sector | Percentage |
|---|---|
| Consumer goods | 26.27% |
| Health Care | 25.93% |
| Industrials | 12.73% |
| Telecommunications | 9.81% |
| Utilities | 8.61% |
| Financials | 6.92% |
| Consumer services | 5.39% |
| Oil & gas | 5.17% |
| Unit/investment trust | 0.13% |
| Basic Materials | 0.04% |
| Cash | -1% |
