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Invesco Perpetual Fixed Interest

Investment companies

Our Fixed Interest team manage two investment companies, each of which benefits from the full resources of the team and their proven long term, active investment approach.

Just like other companies, investment companies issue shares to raise money and then invest that money. The key difference between investment companies and trading companies is that investment companies invest the money raised to build a portfolio of investments, rather than investing in assets for trading purposes. As with any company listed on the Stock Exchange, they have a board of directors whose principal responsibility is looking after shareholders’ interests.

Investment companies are closed-ended funds. This means that when an investor wants to invest they buy existing shares on the stock market. This is important as it means there is no impact on the underlying investment portfolio of the investment company from trading in the shares. This is very different from an open-ended fund, where the underlying investment portfolio increases and decreases in size as shareholder money flows in and out.

This page should be read in conjunction with the investment risks below.

City Merchants High Yield Trust Limited

Watch the latest update

Managers

Paul Causer
Fund Manager
Paul Read
Fund Manager
Rhys Davies
Portfolio Manager

March 2016 update

Rhys Davies
Fixed Interest Portfolio Manager and Senior Credit Analyst

This video should be read in conjunction with the investment risks below.

Objective

The Company’s investment objective is to seek to obtain both high income and capital growth from investment, predominantly in high-yielding fixed-interest securities.

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.

Ordinary share price and NAV cumulative performance (% growth)
  6 months 1 year 3 years 5 years
Share price 11.7 12.8 35.1 67.8
Net Asset Value 9.8 12.1 23.5 70.0
Standardised rolling 12-month NAV performance (% growth)
  31.09.11
31.09.12
31.09.12
31.09.13
31.09.13
31.09.14
31.09.14
31.09.15
31.09.15
31.09.16
Net Asset Value 17.7 17.0 8.1 1.9 12.1
Standardised rolling 12-month ordinary share price performance (% growth)
Share price 11.3 11.6 18.0 1.5 12.8

Past performance is not a guide to future returns. Ordinary share price performance figures have been calculated using daily closing prices with dividends reinvested. NAV performance figures have been calculated using daily NAV with dividends reinvested. The NAV used excludes current period revenue and values debt at par. All performance figures are in sterling as at 30 September 2016 unless otherwise stated. Source: Morningstar.

Invesco Perpetual Enhanced Income Limited

Watch the latest update

Managers

Paul Causer
Fund Manager
Paul Read
Fund Manager
Rhys Davies
Portfolio Manager

March 2016 update

Rhys Davies
Fixed Interest Portfolio Manager and Senior Credit Analyst

This video should be read in conjunction with the investment risks below.

Objective

The Company’s principal objective is to provide shareholders with a high level of income whilst seeking to maximise total return through investing in a diversified portfolio of high yielding corporate and Government bonds. The Company may also invest in equities and other instruments that the Manager considers appropriate. The Company seeks to balance the attraction of high yield securities with the need for protection of capital and to manage volatility. The Company generally employs gearing in its Investment Policy.

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.

Ordinary share price and NAV cumulative performance (% growth)
  6 months 1 year 3 years 5 years
Share price 13.6 19.0 42.0 126.4
Net Asset Value 12.2 16.5 28.1 98.0
Standardised rolling 12-month NAV performance (% growth)
  31.09.11
31.09.12
31.09.12
31.09.13
31.09.13
31.09.14
31.09.14
31.09.15
31.09.15
31.09.16
Net Asset Value 30.7 18.3 8.4 1.3 16.5
Standardised rolling 12-month ordinary share price performance (% growth)
Share price 31.6 21.1 19.0 0.2 19.0

Past performance is not a guide to future returns. Ordinary share price performance figures have been calculated using daily closing prices with dividends reinvested. NAV performance figures have been calculated using daily NAV with dividends reinvested. The NAV used excludes current period revenue and values debt at par. All performance figures are in sterling as at 30 September 2016 unless otherwise stated. Source: Morningstar.

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.

When making an investment in an investment 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 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 City Merchants High Yield Trust Limited and the Invesco Perpetual Enhanced Income Limited have a significant proportion of high-yielding bonds, which means that there is more risk to investors' capital and income than from a Company investing in government or investment-grade bonds. Income from the investments may fluctuate and is not guaranteed.

The Companies may invest in derivatives. This means that the net asset value of the Companies 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 Companies may use borrowings to invest in the market. The use of borrowings may enhance total return when the value of the Companies' assets are 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 companies may be required to repay borrowings and this could adversely affect income and capital returns.

Important information

Where Invesco Perpetual has expressed views and opinions, these may change.

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, which are available from the Literature section.

Issued on behalf of the board of the City Merchants High Yield Trust Limited and Invesco Perpetual Enhanced Income Limited by Invesco Fund Managers Limited.