Other investments

The £1/Unit is meaningless marketing.  Assume 100 people each buy 1 £1 unit. The fund then goes out and buys £100 of shares, with a unit trust you are subscribing cash to be spent later. Because the £100 is a clean slate you hope the fund manager spends it wisely, and to a degree he has more freedom than the manager of an existing fund who might have to sell something to make a purchase.  If six months later the shares owned by the fund have risen by 10% you will be able to buy units for £1.10. If they fall by 10% the units will cost £0.90.

In the past you had to pay a 5% initial fee when buying unit trusts, this fee would often be refunded for new issues. Today you do not have to pay an initial fee through most fund supermarkets so the offer would only be valuable if there was some form of cashback.

The way this launch is being promoted suggests it will be forced to largely invest in same large companies other trusts already invest in due to the volume of cash it is trying to attract at launch. 

I am not suggesting there is anything wrong with this trust, only that there is no need to see it as an urgent but now while stocks last deal.

Thank you again, gents. I think my mind is made up. No benefit in getting in at the wrong time because the "offer" (i.e. "to your advantage") actually isn't an "offer", it is just literally -  an offer.

Hmm, thinking a bit more about c) makes we want to invest. If a mass stampede out of the Invesco funds does cause the FTSE to fall, NW's fund is in the perfect position to take advantage of it by having a big pot of money just waiting to "buy low". A chance for a short term gain maybe? I guess this is maybe what Invesco fears more than volatility, per-se - if the new fund is allowed to get a "head start" over the old Invesco funds then it will difficult for them to look good on comparison charts in the future.

Only trouble is, if I'm going to invest in this, take advantage of Wellesley's cashback and get some more into RS while the rates are up, the sofa is really going to have to come up trumps this time.

Just re-visited HL's Wealth 150 List. This is predicting a 4% yield and potentially could be a good buy. I will be waiting to see what it looks like when fully invested.

Perhaps also worth noting that the Invesco Perpetual High Income fund was removed from the equity income sector because it didn't meet the income requirement, to be 10% more than the FTSE over a three year rolling average. The Income fund is likely to follow. I doubt that there's a reason to expect anything else from the new fund but how much difference this will make due to the people who wanted it for income generation is unknown. The funds he was running have underperformed over the last few years but that isn't a surprise, it's expected when the FTSE is growing relatively quickly, as a result of the investing style.

I will be buying shares, but not at launch. I am waiting for a significant global market correction; particularly in EM with China facing a credit bubble that is in serious danger of imploding.

Currently shorting the Euro and the Aussie Dollar against the US Dollar; the Aussie being a proxie for Chinese raw material demand - particularly iron ore. I don't feel comfortable going near shares in general right now...

Now at £1.01 - hooray!