Sadly not intelligent enough to add a chart to the post, but since the 20% dip v USD at Brexit, (c.1.49 down to c.1.21), it has gradually climbed to c.1.28 so has climbed c.6% from there. Maybe part of the reason for the sluggish performance of UK equity funds/ITs? Other than that, perhaps it's just a perception that UK equity is currently over-valued? No where near as bad as USA, but Europe, Japan and EM appear "cheaper". I could of course be taking total rot so happy to be corrected by anyone more experienced in these matters!!
yes I am aware, but what explains recent poor performamce of virtually all UK income funds even if they are yielding 3.5 to 5.0 ? They had a boost when sterling weakened by 20% versus dollar but recently hey have regressed.
I think you'll find that the Dividned has been increased for last 50 years. That covers a fair few market corrections and downturns.
The fund also has reserves which can be dipped into to cover any shortfall in dividend payment. Plus I believe new rules in place mean, if needs be, some capital can be taken to provide a dividend. The latter I think has been used by other funds.
This is one of my long term core holdings. It's not going to knock the lights out in terms of performance, but then a growing dividend soon makes your actual yield very enticing, even if you top up now and then.
I did see this PIE EATER, but whilst this was a helpful indication, it was only a statement of intention.
It did actually say that the dividend would be "declared" in July. Perhaps I am being too picky, but we are now at 19th July, and is due to go ex div in 8(?) business days time; i think this is a bit slow?
I hold shares in 7 other Investment Trusts, and they are much more prompt with their declarations.
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