Learning: Unstructured

In Q4 2020, Value (14.8%*) had its first quarterly outperformance against Growth (11.4%*)  for two years, driven largely by renewed optimism following the announcement of the successful Covid-19 vaccination trials in November.  

Over the New Year, we have also seen agreement reached on a trade deal between the UK and the EU. As the uncertainty dissipates around the terms of the trade agreement and the vaccination roll out, will UK and European equity markets rally and will the style rotation continue? There are also other questions to answer, given the change of US Government and continued monetary stimulus, and how this will drive economics in 2021.

Listen as Michael Joynson, Head of Market Insights, discusses these questions with Martin Walker, Head of UK Equities and Oliver Collin, European Equities Fund Manager.

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. 

* Source: Datastream and Bloomberg as at 1 January 2021. Index: MSCI ACWI GBP

Invesco European Equity Income strategy
The strategy uses 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. The Manager, however, will ensure that the use of derivatives does not materially alter the overall risk profile. Although the strategy invests mainly in established markets, it can invest in emerging and developing markets, where there is potential for a decrease in market liquidity, which may mean that it is not easy to buy or sell securities. There may also be difficulties in dealing and settlement, and custody problems could arise.

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

The strategy 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. The Manager, however, will ensure that the use of derivatives does not materially alter the overall risk profile.

Important information
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.
 

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.