From: "John2205@googlemail.com" 
Newsgroups: uk.finance
Subject: Understanding ISA Yields
Date: 4 Mar 2007 09:06:32 -0800
   posting-account=NRpZ1g0AAAA_sxfFzjZy-j8UOiSZoRNX

I am trying to understand ISA's and yields - and I am not sure if this
is the correct place to ask these question -- if not perhaps someone
mighjt be kind enough to tell where I might get the answers - I find
IFA confusing and somehow I feel uncomfortable if i don't understand
some basic rules.

i often see quoted performance figures for example Invesco Perpetual
Monthly Income + that telle me that the performance over the last year
has been 108.8 and a yield of 4.9% Does this mean that if I had
invested =A37,000 a year ago the investment is now worth =A37616 and I
would have received =A3343 income.

What would be the income in the second year 4.9% of =A37000 or 4.9% of
=A37616? And what would the income be in the second year if instead of
taking the income in the first year I had re-invested it.

Would it be 4.9% of =A37,000
or 4.9% of =A37343
or 4.9% of =A37617
or 4.9% of =A37959

I hope someone can explain?

regards

J