Virgin Income Fund

[Johnny Cash]

Ive got some money invested in the Virgin Income fund as an ISA. Yield isnt too bad at 4.71% net but the price has been dropping quite alarmingly recently. In Feb the unit price was 118p now its a shade under 112p

Anyone know why? The fund invests in Gilts and a mix of divident paying blue chips.

[Killer Bunny]

Ive got some money invested in the Virgin Income fund as an ISA. Yield isnt too bad at 4.71% net but the price has been dropping quite alarmingly recently. In Feb the unit price was 118p now its a shade under 112p

Anyone know why? The fund invests in Gilts and a mix of divident paying blue chips.

Treasuries and corp bonds are dying.

[mikefluk]

Ive got some money invested in the Virgin Income fund as an ISA. Yield isnt too bad at 4.71% net but the price has been dropping quite alarmingly recently. In Feb the unit price was 118p now its a shade under 112p

Anyone know why? The fund invests in Gilts and a mix of divident paying blue chips.

Yep guilts and bonds are falling. I sold my property in 2004 and invested £50k (premium of property profit over realy underlying value) in 10 equity income trusts. This is our pension The 10 I selected were

Invesco Perpetual High Income

Invesco Perpetual Income

Newton Higher Income

Jupiter Income

Framlington monthly Income

F & C Stewardship income

Rathbones Income

Schroders Income

Artemis Income

Linotrust First Income

Since then (April 2005) my portfolio has grown to £63,000 (even after last weeks falls)

In my view this is a far better pension because they are linked to annutiies which never increase. Dividends increase every year. Furthermore with pensions your capital is confiscated here I can withdraw capital at any time tax free (allowance is £8k profit each year)

Your 4.7% yield has been wiped out by capital losses. I reinvest my dividends so even if equities do fall I am cushioned by an increasing annual dividend yield which is reinvested. To me its a no brainer

Good luck