Invesco Perpetual High Income fund
Andy Parsons, Advice team manager at The Share Centre explains how investors looking to achieve a high level of income, together with capital growth, could benefit from the Invesco Perpetual High Income fund.
"Invesco Perpetual is not only one of the largest fund management groups in the UK, but it also has one of the most popular and well-respected fund managers, Neil Woodford. Its flagship fund, Invesco Perpetual High Income, is managed by Woodford and aims to invest primarily in companies listed in the UK, with the balance invested internationally.
"The fund provides exposure to select UK companies which Woodford believes currently offer significant potential for both long-term capital growth and sustainable income. It is one of the largest actively managed funds amongst its competitors, currently being worth in the region of £8.9bn.
"For many years Woodford's reputation has been based on his consistent and well-established management style; he is not afraid of being contrarian or to back his convictions and beliefs. For example, during the technology bubble Woodford refused to participate, and in the end he was proved right.
"Woodford has a strong belief that for the foreseeable future, solid defensive companies are the best place to be invested. This has meant that year-to-date the fund has underperformed, while many of his competitors have benefitted from various sector rallies. However, Woodford remains convinced that companies in the utilities, healthcare, telecom and tobacco sectors, continue to offer clear value and looking ahead he expects them to provide leadership to the UK market.
"More importantly, over 5 and 10 year periods the fund has returned 58.6% and 143.5%, significantly outperforming the IMA UK Equity Income and Growth sectors average returns of 31.4% and 57.6% over the same periods.
"The fund is suitable for investors who are unsure which UK income fund to choose, and for those who prefer to follow a manager with a proven track record. The fund distributes income bi-annually."