2022 continues to cause uncertainty and worry for investors with ongoing geopolitical tensions, inflationary pressures, and an energy crisis.
Head of Specialist Funds, Will Ellis, sat down with managers of the Invesco Select Trust plc to get their thoughts on the current market environment, how they have positioned their portfolios, and their outlooks for the asset classes in which they invest; UK equities, global equities and sterling investment grade.
Glossary of terms
The US Federal Reserve
A cyclical stock is a stock whose profits are significantly impacted by level of economic growth and optimism in the global economy. Cyclical stocks tend to perform well in periods when the global economy is growing, and less well when the economy is slowing down or in recession.
A measurement of a bond's sensitivity to changes in interest rates. Duration is expressed in years and takes into account factors including how long before the bond matures, its yield and coupons.
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/company 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/company 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 use of borrowings may increase the volatility of the NAV and may reduce returns when asset values fall.
The Invesco Select Trust plc uses derivatives for efficient portfolio management which may result in increased volatility in the NAV. In addition, some companies are suspending, lowering or postponing their dividend payments, which may affect the income received by the product during this period and in the future.
The Invesco Select Trust plc – Global Equity Income Share Portfolio invests in emerging and developing markets, where difficulties in relation to market liquidity, dealing, settlement and custody problems could arise.
The Invesco Select Trust plc UK Equity Share Portfolio invests in smaller companies which may result in a higher level of risk than a product that invests in larger companies. Securities of smaller companies may be subject to abrupt price movements and may be less liquid, which may mean they are not easy to buy or sell.
All information correct as at 15 September 2022 unless stated otherwise.
This article is marketing material and is not intended as a recommendation to invest in 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.
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.
For more information on our products, please refer to the relevant Key Information Document (KID), Alternative Investment Fund Managers Directive document (AIFMD), and the latest Annual or Half-Yearly Financial Reports. This information is available using the contact details shown.
Further details of the Company’s Investment Policy and Risk and Investment Limits can be found in the Report of the Directors contained within the Company’s Annual Financial Report.
Current tax levels and reliefs may change. Depending on individual circumstances, this may affect investment returns.
If investors are unsure if this product is suitable for them, they should seek advice from a financial adviser. For details of your nearest financial adviser, please contact IFA Promotion at www.unbiased.co.uk
Issued by Invesco Fund Managers Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK. Authorised and regulated by the Financial Conduct Authority.