The Lemon Fool

Hi All.

Link below, noting these two High Yield Bond investment trusts to merge.

https://citywire.co.uk/investment-trust-insider/news/invesco-bond-trusts-to-merge-and-create-bigger-better-bips/a1473622

Makes sense to me.

Regards, Newroad

Unless the economies of scale are passed on to shareholders in the form of lower fees, I can't immediately see any benefit to me as a shareholder. I've owned IPE for several years and been very satisfied with the fund performance.

Y

Hi Yieldhog.

Yes, that is the case - the % fees are being reduced

"Invesco will cut its annual management fee to 0.65% of net assets for the larger BIPS, down from the tiered rates for CMHY and IPE which start at 0.75% and 0.8% respectively"

Regards, Newroad

Newroad wrote:Hi Yieldhog.

Yes, that is the case - the % fees are being reduced

"Invesco will cut its annual management fee to 0.65% of net assets for the larger BIPS, down from the tiered rates for CMHY and IPE which start at 0.75% and 0.8% respectively"

Regards, Newroad

Good news. I hold CMHY as part of my portfolio, of which 20% is fixed interest. I like its international approach and hope that the bonds will keep up with increases in inflation, though we've been saying that for at least ten years. Yawn....

Steve

stevensfo wrote:

Newroad wrote:Hi Yieldhog.

Yes, that is the case - the % fees are being reduced

"Invesco will cut its annual management fee to 0.65% of net assets for the larger BIPS, down from the tiered rates for CMHY and IPE which start at 0.75% and 0.8% respectively"

Regards, Newroad

Good news. I hold CMHY as part of my portfolio, of which 20% is fixed interest. I like its international approach and hope that the bonds will keep up with increases in inflation, though we've been saying that for at least ten years. Yawn....

Steve

Hi, I think you may be confusing CMHY with another fund of a similar name and I'm sure other Lemon Fool's will instantly name it.
CMHY is 95% fixed interest. The share price of CMHY is generally unrelated to inflation but more to interest rates. Of course inflation leads to an increase in interest rates but there's a lag effect.

Gan020 wrote:

stevensfo wrote:

Newroad wrote:Hi Yieldhog.

Yes, that is the case - the % fees are being reduced

"Invesco will cut its annual management fee to 0.65% of net assets for the larger BIPS, down from the tiered rates for CMHY and IPE which start at 0.75% and 0.8% respectively"

Regards, Newroad

Good news. I hold CMHY as part of my portfolio, of which 20% is fixed interest. I like its international approach and hope that the bonds will keep up with increases in inflation, though we've been saying that for at least ten years. Yawn....

Steve

Hi, I think you may be confusing CMHY with another fund of a similar name and I'm sure other Lemon Fool's will instantly name it.
CMHY is 95% fixed interest. The share price of CMHY is generally unrelated to inflation but more to interest rates. Of course inflation leads to an increase in interest rates but there's a lag effect.

Hi, no it's CMHY, but perhaps I was writing too fast and my syntax was not clear enough. My old O-level English teacher would have pulled me up on that! I meant that FI makes up 20% of my portfolio. Most of that 20% is made up of corporate bonds and Preference shares, but some ITs and ETFs for ex-UK coverage.

Steve