UK Equities Investment Trust update
Video | 14 March 2017
Mark Barnett is portfolio manager for:
The Edinburgh Investment Trust plc
Perpetual Income and Growth Trust plc
Keystone Investment Trust plc
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 Edinburgh Investment Trust plc, Perpetual Income and Growth Trust plc and Keystone Investment Trust plc may invest in derivatives. This means that the net asset value of the investment trusts may, at times, be highly volatile. The use of derivative instruments involves certain risks (including market or communication breakdown, counterparty failure and credit risk) and there is no assurance that the objectives for the use of such instruments will be achieved.
The Edinburgh Investment Trust plc, Perpetual Income and Growth Trust plc and Keystone Investment Trust plc may use borrowings to invest in the market. The use of borrowings may enhance total return when the value of the investment trusts’ 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 trusts may be required to repay borrowings and this could adversely affect income and capital returns.
All information correct as at 23 February 2017.
Where Mark Barnett 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), the Investment Trust ISA and Savings Scheme Key Features and Terms & Conditions and the latest Annual or Half-Yearly Financial Reports. This information is available from the Literature section.
Issued on behalf of the boards of The Edinburgh Investment Trust plc, Perpetual Income and Growth Trust plc and Keystone Investment Trust plc by Invesco Fund Managers Limited. Authorised and regulated by the Financial Conduct Authority.