Windlesham Don
29 May 2018
Board Announcement Interesting announcement from the Board this morning and perhaps the first sign that they are fighting back against Invesco.The sooner they dump Invesco and get another company in the better in my view, as it looks like Invesco have been overcharging for years. It also looks like Invesco agreed a reduced set of charges, but then pulled out...
PrefInvestor1
26 May 2018
Re: First sliver - marktime1231 Hi MT,Took a look at these for my new income portfolio but being purely invested in high yield bonds with higher interest rates on the way at some point the capital value of their portfolio (and hence the share price) can only go one way cant it ?. It doesnt seem to have the redeeming feature of some equity exposure like NCYF for example ?.Paying 5p in dividend per year I guess the question for me is will that exceed the SP drop each year if rates do go up ?. Actually its lost more than that in the last month looking at the charts......From the perspective of anyone who bought these ages ago and is still looking at a capital gain on their original purchase I can see the rationale for just holding on to these. But as a new purchase I'm not immediately convinced its a good idea.Manager change is also an unwelcome distraction, new managers might change the approach - but wont know for a year.Like to hear why you clearly think otherwise.ATBPref
vik the ram
24 May 2018
Re: Questor says sell... The high yield should support the price. I don't see any reason to sell the shares as long as the investment is for income, as I don't see any prospects of capital growth. The shares were launched at 100p many years ago so capital performance has been extremely disappointing.
budu
24 May 2018
Questor says sell... ...in today's Daily Telegraph, and buy City Merchants High Yield instead. What do holders think of this move? I would cost me a 5% capital loss and I am wondering if it is best to wait and see how Invesco or its replacement proposes to run the trust.
marktime1231
11 May 2018
First sliver taken today as the sp just dipped into my range, the start of an accumulation.
Windlesham Don
02 May 2018
Re: Fresh appraisal Thanks for the excellent analysis.I've held these for years, for exactly the reasons you state - there is room in my portfolio for a zero growth, 6.5% yield, just as there is room for the racier ITs such as FGT and SMT.I notice that you didn't mention CMHY in your list? Another fairly dull IT, but one that should be considered IMO when looking at other HY fixed interest funds.ATB,
marktime1231
02 May 2018
Re: Fresh appraisal One of the reasons the charges are so high is the management fee is tiered to drop when we hit £150M assets ... but the trust value has hovered at that threshold for some time. Despite a typical 5% premium for much of the time no-one has been encouraged to issue more equity and kick-on to gain benefits of scale.Another reason the charges are so high is investments are diverse to the point of shotgun ... £150M spread over something like 180 mostly corporate bonds mostly UK plus things like US Treasury. Several stakes less than £150K. The cost of evaluating, trading, over-seeing must be huge, would it make a fundamental difference to the risk/return if you consolidated to 150 targets? Weed out some of the smaller, weaker, riskier ones? Select fewer more carefully for the same result?The payout of 5p per year has not changed for 9 (NINE) years, despite all the trading of bond positions there has been no progress in the delivered yield for the benefit of long term income investors. Paid quarterly when a monthly payout might attract more attention.In the mid-70's is where we were in May 2014. As a trust-of-bonds the NAV has recently reacted badly to prospects of returning inflation and perp cancellations. The 5 year report claims 40+% growth but that claim only succeeds if you do the analysis from a deep trough in early 2013 to a high peak in late 2017, which highlights there is volatiltity in sp rather than progress in NAV. Over the longer term there should be a little NAV development if only by exploiting the premium in the sp, but IPE has stalled.Despite all that a safe-ish 6.5% yield is a pretty good option if all you want is a steady return beating inflation by 3+%, and you are not bothered by NAV or dividend progress. My conclusion is that with new management directed to expand the trust and reduce the number of targets slightly to cap costs, while keeping focus as a reliable high yielder, IPE (dull) is a good choice. The key is to pick it up when the buy price has more upside, the chart is currently on a long downward trend. Really good value somewhere 72-75p, an absolute bargain if it dips to 70p last seen two years ago but a chance we will see that again this year if US Treasury yields rise another 0.5% as some are predicting.That scenario would make NCYF (dull) better value in the future too, whereas SQN (riskier), SMIF (dull) and EAT (riskier) look more promising at their current prices. In the interests of my own portfolio diversity I can see a place for all those mentioned above, the trick is to pick them up at the right time.If you want an out-and-out punt have a look at FAIR, SIHL or BAF, and that is purely as a matter of interest rather than saying anything for or against them.
marktime1231
28 Apr 2018
Fresh appraisal Despite the abrupt announcement re change of management IPE has recovered its 3-4 % premium pretty quickly.To be brutal, the extraordinary high fees and extremely high fund charges seem out of step with a NAV which has declined steadily and a dividend payout which has not progressed for at least 5 years. What have Invesco been doing?I would have thought there would be a number of alternative managers only too willing to take IPE on, certainly scope for a slightly lower management fee, a period of consolidation meaning fewer portfolio charges for a while ... freeing cash to up the yield or build up a reserve.How about an equity issue programme to control the premium, grow the size of the fund, raise cash for new higher yield investments, capitalise on the obvious strength of demand?Worth looking at the make up of the portfolio and the reason for the high charges, and considering at what sp this would make a good investment.
Rober01
24 Apr 2018
Re: Invesco Fiasco Maybe you would not, but the industry does!!! Hence the drop in price.
Sharpedge7
24 Apr 2018
Re: Invesco Fiasco Agree - also the letter of termination may well be tactical but it threw me tbh - still think it is a bizarre situation and a mismanaged one. I sold yesterday - probably a mistake (to sell yesterday) but there you go.
JohnOfYork
24 Apr 2018
Re: Invesco Fiasco I wouldn't put their performance in the "star" category. Over the last 3 years the SP has spent more time below my average buying price than above. Also, I think that both parties will agree a handover to a new management team rather than completing a 12 month transition period.
Rober01
24 Apr 2018
Re: Invesco Fiasco they have fell out with Invesco over future fees. Hence NO star management pair after the 12 month transition!!!
Starfishmark
23 Apr 2018
Re: Invesco Fiasco So now they are trading at around -10% to Net Asset Value, right?
Starfishmark
23 Apr 2018
Re: Invesco Fiasco can anyone explainnone of the other similar products have dropped this way
Sharpedge7
23 Apr 2018
Invesco Fiasco See RNS and price drop today....pretty peed off with em
