An investment trust for
CHANGING TIMES
Invesco Perpetual Select Trust PLC was launched in 2006 and is a multi-asset class
investment trust.
It has four share classes with a range of
objectives suited to investors looking for a
long-term investment with the flexibility
to react to changing investment conditions
without triggering a disposal for Capital Gains
Tax purposes. The four share classes are:UK Equity - managed by Mark Barnett who seeks to maximise exposure to the most attractive sectors and securities. His high-conviction approach drives an investment objective that aims to provide shareholders with an attractive real long-term total return by investing primarily in UK quoted equities. Dividend growth is key which ultimately, Mark believes, leads to higher share prices.
Global Equity Income - managed by Paul Boyne and Doug McGraw whose unconstrained approach leads them to invest in a portfolio of global companies which they believe, through growth in dividends, offer the potential for capital appreciation in share prices.
Balanced Risk Portfolio - managed by Scott Wolle and his team from Invesco’s Atlanta office whose approach to portfolio construction is, literally, to balance the risk contribution from each of the three asset classes of equities, bonds and commodities so that each contributes an equal proportion of the total risk. By investing in derivatives and other financially-linked instruments, its objective is to provide shareholders with an attractive total return in differing economic and inflationary environments and with low correlation to equity and bond market indices from exposure to these three asset classes. This is a total return portfolio with no dividend yield.
Managed Liquidity - managed by Stuart Edwards whose near-cash portfolio’s principal objective is to produce a high degree of security. Dividends reflect prevailing interest rates.
Capital Structure
Quarterly Conversions - the trust has an innovative capital structure that permits quarterly conversions between the four share classes allowing maximum flexibility for shareholders to gain exposure to their preferred asset classes. Conversions take place 1 February, May, August and November, are on an NAV-to-NAV basis and, under current tax legislation, are not considered to be a disposal for Capital Gains Tax purposes. This is, therefore, a very tax-efficient way to build a long-term asset allocation investment strategy.
Quarterly Dividends - dividends and dividend growth are major components of the investment strategies driving both the UK Equity and Global Equity Income portfolios and are paid quarterly, just before each conversion date, as above. When sufficient cash is available for distribution, Managed Liquidity will also pay quarterly dividends.
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. Past performance is not a guide to future returns. 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 price 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 investment trust will make significant use of financial derivatives (complex instruments) which will result in large fluctuations in the value of the investment trust. Leverage created from borrowing on certain types of transactions including derivatives may impair the investment trust’s liquidity, cause it to liquidate positions at unfavourable times or otherwise cause the investment trust not to achieve its intended objective. Leverage occurs when the economic exposure created by the use of derivatives is greater than the amount invested resulting in the investment trust being exposed to a greater loss than the initial investment. The investment trust will gain exposure to commodities which are generally considered to be high risk investments and may result in large fluctuations in the value of the investment trust. Fixed income securities to which the investment trust is exposed are open to credit risk which may result in issuers not always making interest and or other payments nor is the solvency of the issuers guaranteed. The information contained in this advertorial is selective and does not constitute an offer, or an invitation to subscribe for, or purchase, any securities. It does not form part of any prospectus and application for shares should be considered only on the basis of a full prospectus.
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