Invesco Income and High Income

[The Mad Monk]

I hold Invesco Income and Invesco High Income Funds, managed by Chelea Financial Services, they have given me generic advice to switch to another fund.

Question is, which one? Any advice, please?

[anonymous-user]

It’s going to take a while for people to fully absorb the details in this post in order to advise you.

[JulianPH]

Hi, this might be semantics, but what is generic about this advice, they are either advising you to sell or are not.

Again semantics, but Chelsea have nothing to do with the management of these funds, you are simply paying them a premium to hold them on the Cofunds/Aegon platform (0.4% a year on top of Aegon's 0.15% - so 0.55%).

Invesco have charges of 1.07% for its High Income fund and 0.86 for Income.

This means you are paying a total of 1.41% for Income and 1.62% for High Income.

Income is down 7.45% over 1 year and down 0.88% over 3 years (and up 13.8% over 5 years).

High Income is down 9.26% over 1 year and down 1.77% over 3 years (and up 14.66% over 5 years).

Of course you have to add the impact of the 0.55% annual Chelsea charges to these figures.

I would not be comfortable paying an intermediary this fee if when the recommend you switch out of funds but don't recommend where to move.

Without know your other investment holding and what you are looking for over what time period it is impossible to suggest replacement funds here.

You may, for example, be better off using a less expensive platform and holding low cost trackers, perhaps with a smaller holding in something a bit more exciting.

Also, feel free to have a look at the IM sticky at the top of this forum to see what we do!

[DoubleSix]

OP, nobody who is regulated to provide advice is going to post on here telling you where to invest, it’s a direct contravention of the regulation.

Julian will steer you towards his IM service whilst giving you some factual guidance and undermining your existence service (true for all posts in the finance sub forum).

Others may tell you the’ve made money on ‘ABC’ Fund so you should invest in that...

Basically, do your own research via the wealth of information on the web or pay an independent financial adviser to select the fund(s) for you.

[JulianPH]

DoubleSix said:

OP, nobody who is regulated to provide advice is going to post on here telling you where to invest, it’s a direct contravention of the regulation.

Julian will steer you towards his IM service whilst giving you some factual guidance and undermining your existence service (true for all posts in the finance sub forum).

Others may tell you the’ve made money on ‘ABC’ Fund so you should invest in that...

Basically, do your own research via the wealth of information on the web or pay an independent financial adviser to select the fund(s) for you.

I think that is a bit harsh!

I gave the OP a lot of factual information, said everything you said about not being able to answer his question here, and did not undermine his current service, simply pointed out is was a very expensive way of doing things.

I am sure you would agree that paying 1.62% for holding an under performing fund is expensive, when the OP could get full financial advice for this fee or pay one third of this for a decent passive approach.

[DoubleSix]

I could point out that nobody pays to hold an underperforming fund (as you well know), underperformance can only be observed retrospectively. Just because the OP is holding a 4th quartile performer doesn’t mean the advice was poor.

I could comment on the fees as you’ve invited me to, but there’s scant detail to do that in any meaningful way...

Ultimately though, all paths of discussion will lead back to “Intelligent Money sticky at top of page” so I’d rather save my energy!

[anonymous-user]

DoubleSix said:

I could point out that nobody pays to hold an underperforming fund (as you well know), underperformance can only be observed retrospectively. Just because the OP is holding a 4th quartile performer doesn’t mean the advice was poor.

I could comment on the fees as you’ve invited me to, but there’s scant detail to do that in any meaningful way...

Ultimately though, all paths of discussion will lead back to “Intelligent Money sticky at top of page” so I’d rather save my energy!

We all wish you had done that at the start, instead of taking a random opportunity to stick the boot into Julian for no reason.

Btw I'm not a customer of IM

[Testaburger]

DoubleSix said:

I could comment on the fees as you’ve invited me to, but there’s scant detail to do that in any meaningful way...

Scant? It seems like there was a pretty detailed breakdown of fees mentioned.

[JulianPH]

keirik said:

We all wish you had done that at the start, instead of taking a random opportunity to stick the boot into Julian for no reason.

Btw I'm not a customer of IM

Thank you.

I think it was relatively obvious that I was just trying to be helpful and give the OP some more detailed information and pointers.

[anonymous-user]

JulianPH said:

keirik said:

We all wish you had done that at the start, instead of taking a random opportunity to stick the boot into Julian for no reason.

Btw I'm not a customer of IM

Thank you.

I think it was relatively obvious that I was just trying to be helpful and give the OP some more detailed information and pointers.

It was but you didn't need to add the last line.

[JulianPH]

Testaburger said:

DoubleSix said:

I could comment on the fees as you’ve invited me to, but there’s scant detail to do that in any meaningful way...

Scant? It seems like there was a pretty detailed breakdown of fees mentioned.

Hi mate, yes, I think I was pretty specific and would hardly call a full breakdown of fees as being scant detail!

It is interesting how many financial advisers become evasive when it comes to fees...

[JulianPH]

Badda said:

JulianPH said:

keirik said:

We all wish you had done that at the start, instead of taking a random opportunity to stick the boot into Julian for no reason.

Btw I'm not a customer of IM

Thank you.

I think it was relatively obvious that I was just trying to be helpful and give the OP some more detailed information and pointers.

It was but you didn't need to add the last line.

Fair enough, but "feel free to have a look" is hardly being pushy.

[NickCQ]

As a general rule I would be suspicious of advice to churn between funds when the party giving that advice gets paid transaction fees if you do so!

[anonymous-user]

JulianPH said:

Badda said:

JulianPH said:

keirik said:

We all wish you had done that at the start, instead of taking a random opportunity to stick the boot into Julian for no reason.

Btw I'm not a customer of IM

Thank you.

I think it was relatively obvious that I was just trying to be helpful and give the OP some more detailed information and pointers.

It was but you didn't need to add the last line.

Fair enough, but "feel free to have a look" is hardly being pushy.

Totally agree. You do have a sticky running though so, personally, I think don't think you need to direct people towards it as it undermines your valued advice.

[Testaburger]

JulianPH said:

Hi mate, yes, I think I was pretty specific and would hardly call a full breakdown of fees as being scant detail!

It is interesting how many financial advisers become evasive when it comes to fees...

They’re not famous for providing clarity. I can only assume it was an opportunity to excel in the champagne room of the FA arena; that being to add some complexity.

[JulianPH]

Testaburger said:

They’re not famous for providing clarity. I can only assume it was an opportunity to excel in the champagne room of the FA arena; that being to add some complexity.

I could not possibly comment mate!

[JulianPH]

Badda said:

Totally agree. You do have a sticky running though so, personally, I think don't think you need to direct people towards it as it undermines your valued advice.

A big part of the sponsorship is to be able to point at it!

I do take on board your point though.

I sometimes wonder if this sponsorship was actually a good idea. I enjoyed being one of the gang and giving back to others on what I knew about in return for the help others gave to me in areas I knew little (or nothing) about.

I think this is what makes PH so great.

I joined purely as a car lover. It took me a long time before I even realised there was a Finance forum (I wasn't looking for one).

I'm certainly not moaning, it is just that there is an assumption I always have an alterer motive nowdays!

I can understand this, I'm just saying I miss the days before.

[85Carrera]

DoubleSix said:

Julian will steer you towards his IM service whilst giving you some factual guidance and undermining your existence service (true for all posts in the finance sub forum).

I agree, this does get very tiresome and certainly doesn’t make me think I would want to deal with IM.

[Testaburger]

Pointing to his thread doesn’t necessarily make me want to invest with IM, but what does, is that he takes the time to offer very helpful insight, advice, analysis and knowledge. Unless you’re particularly precious, I suspect you’ll find that he does this with humility, doesn’t speak down to anyone, and is happy to engage with anyone on any level.

As the company owner, I think this reflects very well on him, and speaks volumes for the services his company provide.

The finance subsection would be far worse without him - so if that means reading a nudge to his IM thread now and there, so be it.

[JulianPH]

85Carrera said:

I agree, this does get very tiresome and certainly doesn’t make me think I would want to deal with IM.

I'm not sure how you consider me trying help people is in any way tiresome, but it is entirely your choice if you don't want to deal with IM. No one is forcing you (or anyone else, for that matter) to do so.

I will still happily help you with any future financial questions you may have, despite your comments.

I think this is a better measure of a person.