Invesco Perpetual Select Trust plc, UK Equity Update - November 2016

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  • 07 mins 27 secs


Where James mentions the ‘all-share’, he is referring to the FTSE All-Share Index, which consists of approximately 80% large cap companies. In relation to the ‘soft limit’ of not going below 60% large cap, this is not an official restriction and may change in future without notice. Where James mentions ‘the pension fund’, he is referring to the Invesco UK Equity Pension Fund.

Investment risks

This video is for Professional Clients only and is not for consumer use. 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. When making an investment in an investment trust you are buying shares in a company that is listed on a stock exchange. The price of the shares will be determined by supply and demand. Consequently, the share price of an investment trust may be higher or lower than the underlying net asset value of the investments in its portfolio and there can be no certainty that there will be liquidity in the shares. The investment trust may use derivatives for the purpose of efficient portfolio management. There may not be a precise correlation between price movements in the underlying securities, currency or index, on the one hand, and price movements in the investments, which are the subject of the hedge, on the other. In addition, an active market may not exist for a particular derivative instrument at any particular time.

The Directors intend that each portfolio will effectively operate as if it were a stand-alone company. However, prospective investors should be aware that in the event that any of the portfolios have insufficient funds or assets to meet all of its liabilities, such a shortfall would become a liability of the other portfolios. In addition, should the investment trust incur material liabilities in the future, a significant fall in the value of the investment trust’s assets as a whole may affect the investment trust’s ability to pay dividends on a particular class of Shares, even though there are distributable profits attributable to the relevant portfolio.

The investment trust may use borrowings to invest in the market. The use of borrowings may enhance total return when the value of the investment trust’s assets is rising, but it will have the opposite effect when asset values fall. The use of borrowings may increase the volatility of the share price and the net asset value per share. In certain circumstances, the investment trust may be required to repay borrowings and this could adversely affect income and capital returns. The investment trust expects to increase dividend payments on the Global Equity Income and UK Equity shares by making use of its ability to distribute capital. To the extent the investment trust uses its ability to fund dividends using capital profit this will reduce capital growth.

Important information

Where James Goldstone has expressed opinions, they are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco Perpetual investment professionals.

Where securities are mentioned in this document they do not necessarily represent a specific portfolio holding and do not constitute a recommendation to purchase, hold or sell.

For more information on our products, please refer to the relevant Alternative Investment Fund Managers Directive document (AIFMD) and the latest Annual or Half-Yearly Financial Reports, available on our website.

Issued on behalf of the board of Invesco Perpetual Select Trust plc by Invesco Fund Managers Limited. Authorised and regulated by the Financial Conduct Authority. The Invesco UK Equity Pension Fund is available via Invesco Perpetual Life Limited (IPLL). IPLL is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation


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