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Your questions answered

We aim for the information below to answer to any specific questions you may have at this time. If you would like any further information, please speak to your Financial Adviser or contact us.

Why is Neil leaving Invesco Perpetual?

Neil’s decision to leave is a personal one. After 25 years with Invesco Perpetual, Neil has said he is ready for new challenges. Neil intends to establish a new fund management business.

Why have you chosen Mark Barnett to manage the Invesco Perpetual High Income and Income funds and the Invesco Perpetual UK Equity Pension Fund?

We have chosen Mark Barnett with our clients’ best interests in mind. Mark is an exceptional investor who has the same active, valuation-driven investment approach and long-term focus as Neil. A key member of the UK equities team for 17 years, Mark has produced excellent long-term returns for investors in the Invesco Perpetual UK Strategic Income Fund   which has a similar mandate to the High Income and Income funds within the IMA UK Equity Income sector (see Performance profile). Mark has long been identified as a key person in the succession plans for our UK equity funds and this transition sees us put those plans into place.

There are no changes to the funds' investment objectives. Neil will remain responsible for all the funds for which he is the sole fund manager through a transition period during the six months prior to his departure in April 2014.

All of the members of the UK equities team share a common investment philosophy and approach and this will not change. We will continue to strive to deliver good long-term returns for our investors.

When will Mark Barnett assume management of the Invesco Perpetual High Income and Income funds and the Invesco Perpetual UK Equity Pension Fund?

Neil will remain responsible for the funds for which he is the sole fund manager through a transition period during the six months prior to his departure. At the end of the transition Mark Barnett will be named as the manager of the Invesco Perpetual High Income and Invesco Perpetual Income funds and the Invesco Perpetual UK Equity Pension Fund.

Neil will remain at Invesco Perpetual until 29 April 2014.

What about The Edinburgh Investment Trust plc?

The Board of The Edinburgh Investment Trust plc announced on 28 January 2014 that Invesco Perpetual will continue as Manager and that Mark Barnett will take lead responsibility for the management of the Company's portfolio with immediate effect. Find out more

What does this mean for my investment in the funds Mark Barnett currently manages?

Mark Barnett will continue to manage the Invesco Perpetual UK Strategic Income Fund in the same way he has done consistently and successfully for over seven years. Mark will also continue to manage the Keystone Investment Trust plc, the Perpetual Income and Growth Investment Trust plc and the Select Trust plc UK Equity Portfolio as before, subject to the Boards' approval.

Why have you chosen Ciaran Mallon to manage the UK equity elements of the Invesco Perpetual Monthly Income Plus and Invesco Perpetual Distribution funds?

The decision to appoint Ciaran Mallon to manage the UK equity elements of the Invesco Perpetual Monthly Income Plus and Invesco Perpetual Distribution funds reflects the strength and depth of the UK equities team. Ciaran’s investment philosophy and approach are ideally suited to these mandates, with a strong focus on income and income growth.

A key member of the UK equities team for 8 years, Ciaran has produced excellent long-term returns for investors in the Invesco Perpetual Income and Growth Fund – which has a similar mandate to the High Income and Income funds within the IMA UK Equity Income sector (see Performance profile). Ciaran has long been identified as a key person in our long-term succession plans and this transition sees us put those plans into place.

When will Ciaran Mallon assume management of the UK equity element of the Monthly Income Plus and Distribution funds?

With effect from 15 October 2013, the UK equity components of the Invesco Perpetual Monthly Income Plus Fund and the Invesco Perpetual Distribution Fund have been managed by Ciaran Mallon alongside the existing fund managers Paul Causer and Paul Read, who manage the fixed income component.

Will the addition of Ciaran Mallon managing the UK equity element of the Monthly Income Plus and Distribution funds change the investment philosophy for the funds?

No, the equity element of these funds will continue to be managed in pursuit of income and income growth. This is entirely consistent with Ciaran's existing responsibilities. As they are now, asset allocation decisions will remain the responsibility of Paul Read and Paul Causer.

What does this mean for my investment in the funds Ciaran Mallon currently manages?

Ciaran Mallon will continue to manage the Invesco Perpetual Income & Growth Fund in the same way he has done consistently and successfully since 2005. Ciaran will also continue to manage the Invesco Income Growth Trust plc as before.

What is a dilution adjustment?

Please read our guide, dilution adjustment explained for a detailed explanation of this term.

Under certain circumstances a dilution adjustment is applied to the price of Invesco Perpetual’s ICVCs to protect existing shareholders from the impact of costs related to dealing resulting from subscription and/or redemption activities by other shareholders.

Our Invesco Perpetual ICVCs are single priced funds valued on a mid-market basis.

When there are net subscriptions into a fund, additional underlying investments may need to be bought by the fund manager. When there are net redemptions, underlying investments may need to be sold within the fund to pay for those redemptions. These underlying security transactions are dealt at prices other than the mid-market price due to the dealing spread and also incur dealing costs (for example commissions and transfer taxes).

The dealing spread on the underlying investments (or bid/offer spread) is the difference between the price at which the fund manager can sell (bid) and the price at which the fund manager can buy (offer). The dealing spread and costs can act to reduce (or "dilute") the value of the fund for the existing shareholders.

In order to mitigate this dilution impact for the existing shareholders, we ensure that the price is set at the appropriate level each day; we achieve this by calculating the mid-market price and then, if necessary, applying a "dilution adjustment" that is equal to the impact of the dealing spread plus associated costs.

Our dilution adjustment policy always ensures that when there is a large net inflow or outflow of fund shares on any dealing day, the share price is adjusted up (to offer) or down (to bid) to offset any dilution. This movement to either offer or bid from the mid-price is carried out in order to protect the value of the shares of the existing shareholders in the fund.

Dilution impact

Current dilution adjustments from 4th March 2014 if applied are:

Description Bid % Offer %
Invesco Perpetual High Income Fund (0.38%) 0.62%
Invesco Perpetual Income Fund (0.40%) 0.61%
  • Positive dilution adjustment figures indicate a typical increase from mid-price when a fund is experiencing large levels of net subscriptions. Negative dilution adjustment figures indicate a typical decrease from mid-price when a fund is experiencing large levels of net redemptions.
  • These figures will be updated next month.

As at 4th March 2014.