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.
Onshore ICVC funds
As a smaller company fund, the Invesco Perpetual European Smaller Companies Fund is higher risk than funds that can invest in larger company sizes. Market conditions, such as a decrease in market liquidity, may mean that it is not easy to buy or sell securities.
The Invesco Perpetual European Equity, European Equity Income, European ex UK Enhanced Index, European Opportunities and European Smaller Companies funds may use derivatives (complex instruments) in an attempt to reduce the overall risk of their 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 of the funds. The Manager, however, will ensure that the use of derivatives within the funds does not materially alter the overall risk profile of the funds.
The securities that the Invesco Perpetual European High Income Fund invests in may not always make interest and other payments nor is the solvency of the issuers guaranteed. Market conditions, such as a decrease in market liquidity for the securities in which the fund invests, may mean that the fund may not be able to sell those securities at their true value. These risks increase where the fund invests in high yield or lower credit quality bonds and where we use derivatives.
The Invesco Perpetual European High Income Fund has the ability to make significant use of financial derivatives (complex instruments) which may result in the fund being leveraged and can result in large fluctuations in the value of the fund. Leverage on certain types of transactions including derivatives may impair the fund’s liquidity, cause it to liquidate positions at unfavourable times or otherwise cause the fund 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 fund being exposed to a greater loss than the initial investment. The fund may be exposed to counterparty risk should an entity with which the fund does business become insolvent resulting in financial loss.
As the Invesco Continental European Small Cap Equity and Pan-European Small Cap Equity Funds are smaller companies funds, you should be prepared to accept a higher degree of risk than funds that invest in larger companies.
The Invesco Pan-European Focus Equity Fund invests in a limited number of holdings and is less diversified, and therefore this may result in large fluctuations of the value of the fund.
Where Jeff Taylor, Stephanie Butcher, Adrian Bignell, John Surplice, Matthew Perowne, Oliver Collin and Erik Esselink have 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.
For the most up to date information on our onshore ICVC funds, please refer to the relevant fund and share class-specific Key Investor Information Documents, the Supplementary Information Document, the ICVC ISA Terms and Conditions, the Annual or Interim Short Reports and the Prospectus, which are available from the Literature section.
Please refer to the most up to date relevant fund and share class-specific Key Investor Information Document for more information on our offshore funds. UK based investors should also refer to the relevant Supplementary Information Document. This information is available from the literature section.
The distribution and the offering of the offshore funds or their share classes in certain jurisdictions may be restricted by law. Persons into whose possession this document may come are required to inform themselves about and to comply with any relevant restrictions. This does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation.
Persons interested in acquiring the offshore funds should inform themselves as to (i) the legal requirements in the countries of their nationality, residence, ordinary residence or domicile; (ii) any foreign exchange controls and (iii) any relevant tax consequences.
The offshore funds are available only in jurisdictions where their promotion and sale is permitted.
For the purposes of UK law, the offshore funds are recognised schemes under section 264 of the Financial Services & Markets Act 2000. The protections provided by the UK regulatory system, for the protection of Retail Clients, do not apply to offshore investments. Compensation under the UK’s Financial Services Compensation Scheme will not be available and UK cancellation rights do not apply.