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Finding attractive valuations in a volatile market

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Learning: Unstructured

Fears around inflation are still the talk of the day, exacerbated by the war in Ukraine.

This has created volatility. But there has also been a further rotation towards stocks with attractive valuations.

These are the sorts of stocks that Martin Walker, Head of UK Equities, looks for in his management of the Invesco UK Opportunities Fund (UK).

In his Q2 video update, Martin answers the following questions:

  • What has happened over the quarter?
  • How has the war in Ukraine impacted the portfolio?
  • How concerned are you about inflation?
  • How did the fund perform over the quarter?
  • What changes have you made to the portfolio over the period?
  • How is the portfolio positioned and what excites you the most in the portfolio at the moment?
  • What is your outlook for UK equities?



Investment risks
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Although the fund does not actively pursue a concentrated portfolio, it may have a concentrated number of holdings on occasions. Accordingly, the fund may carry a higher degree of risk than a fund which invests in a broader range of companies or takes smaller positions in a relatively large number of holdings.

The fund may use derivatives (complex instruments) in an attempt to reduce the overall risk of its investments, reduce the costs of investing and/or generate additional capital or income, although this may not be achieved. The use of such complex instruments may result in greater fluctuations of the value of the fund. The Manager, however, will ensure that the use of derivatives within the fund does not materially alter the overall risk profile of the fund.

Important information
All information correct as at 8 July 2022 unless otherwise stated.

Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.

This is marketing material and not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.
 
For the most up to date information on our funds, please refer to the relevant fund and share class-specific Key Investor Information Documents, the Supplementary Information Document, the Annual or Interim Reports and the Prospectus, which are available on the Invesco website.

Invesco Fund Managers Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK. Authorised and regulated by the Financial Conduct Authority.