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Invesco Perpetual Global Targeted Returns Fund

January 2017 (Content as at 31 December 2016)

Overview

Objective

The Fund aims to achieve a positive total return in all market conditions over a rolling 3 year period. The Fund targets a gross return of 5% per annum above UK 3 month LIBOR (or an equivalent reference rate) and aims to achieve this with less than half the volatility of global equities, over the same rolling 3 year period. There is no guarantee that the Fund will achieve a positive return or its target and an investor may not get back the full amount invested.

Fixed interest roundtable Q&A: where next for bond markets?

Video

15 July 2015

Invesco Perpetual Fixed Interest team

In this live roundtable with fund managers from our Fixed Interest team, they discussed key issues including whether the Greek debt crisis matters for bond markets and the current macroeconomic backdrop.

Market commentary

The traditional Santa rally was replaced by a Trump rally this year as the US president-elect’s twitter mutterings and cabinet picks continued to spur hopes for US growth. Despite the US Federal Reserve matching its 0.25% interest rate hike from a year earlier and upping its 2017 forecast from two hikes to three, equity markets surged during December with US and UK markets hitting record highs. European markets were particularly strong with the euro slumping against the dollar as the European Central Bank broadened its bond-buying programme. The UK market ended the year as one of the best performing among developed markets, boosted by a weakening pound and a commodities rally. Some less generous commentators drew similarities with the Venezualan market which rallied 114% over the year while its local currency was in freefall, however, the UK economy has confounded expectations and held up well since Brexit. High yield and investment grade credit also benefited from the year-end risk-on rally. Yields on government debt reflected divergent monetary policy with US Treasury yields rising and euro-denominated debt moving the other way. Elsewhere, the Russian rouble and the Brazilian real both capped a strong year with solid gains, ending the year around 17% higher versus the dollar following stronger local economic performance.

Fund strategy

During the month, we closed our US Curve idea in the interest rates space. The idea performed well following a sharp sell-off in the belly of the curve (10-year Treasuries), following the Trump victory, however, this meant the idea’s future return expectations were now too limited for inclusion in the fund. Elsewhere, we altered the implementation of a number of ideas. This included moving the market hedges on some of our regional equity ideas to local currency indices to help with FX exposure. In addition, we included the Russell 150 mid cap index in our market hedging to reflect more accurately the make-up of the strategies mirrored in our UK equity idea. Finally, we added a view on European government debt interest rates to our ‘Interest Rates – Yield Compression’ idea, as we believe interest rates here will rise relative to their US equivalents.

Key facts
Product type ICVC
Launch date 09 September 2013
Fund size £8,414.92m
Historic yield 1.55%
Sector IA Targeted Absolute Return NR
Available in an ISA? Yes

Fund manager

Richard Batty

Title: Fund Manager
Team: Invesco Perpetual - Multi Asset

Dave Jubb

Title: Fund Manager
Team: Invesco Perpetual - Multi Asset

David Millar

Title: Head of Multi Asset
Team: Invesco Perpetual - Multi Asset
Fund details
Fund currency GBP
Trading frequency Daily
Accounting period ends 30 June
31 December
Share types
SEDOL ISIN
Accumulation B8CHCY2 GB00B8CHCY21
Accumulation (No Trail) B8CHD05 GB00B8CHD050
Y (Acc) BJ04HL4 GB00BJ04HL49
Z (Acc) B8CHD61 GB00B8CHD613
Investment levels
Minimum lump sum £500
Minimum monthly amount £20
Minimum additional lump sum £100

Performance

Charges

One-off charges taken before you invest

Entry charge

The entry charge for the fund is up to 5%. This is the maximum that might be taken out of your money before it is invested. For example, if you invest £1,000, an entry charge of 5% means £950 of your money will be used to buy shares in the fund.

The entry charge covers the costs of setting up your investment.

If you invest through a third party (such as a financial adviser), but do not receive financial advice on your investment, this charge may include payments to that third party. For more details see "What share classes are available for your ICVC funds?".

Exit charge

There is no exit charge for the fund.

Charges taken from the fund over a year

Ongoing charge

The ongoing charge figure is based on a fixed, all-inclusive fee and excludes portfolio transaction costs. The ongoing charge for each share class can be found in the relevant Key Investor Information Document available under 'Literature'. Investors will be provided with advance notice if any increases to this figure occur.

The ongoing charge covers all aspects of operating the fund during the year, including fees paid for investment management, administration and the independent oversight functions.

If you invest through a third party (such as a financial adviser), but do not receive financial advice on your investment, this charge may include payments to that third party. Once invested, your contract note or acknowledgement letter will show the amount of any payment in cash terms. For more details see "What share classes are available for your ICVC funds?".

Charges taken from the fund under specific conditions

Performance fee

No performance fee is charged.

Portfolio transaction costs

The fund was launched on 9th September 2013. On average, since launch, the fund incurred broker commissions of 0.08% and transfer taxes of 0.11%, as a necessary part of buying and selling the fund’s underlying investments in order to achieve the investment objective. A proportion of these costs are recovered directly from investors joining and leaving the fund.

When the fund buys or sells shares, broker commissions and transfer taxes are paid by the fund on each transaction. In addition, there is a dealing spread between the buying and selling prices of the underlying investments. Unlike shares, other types of investments (such as bonds, money market instruments and derivatives) have no separately identifiable transaction costs; these costs form part of the dealing spread. Dealing spreads vary considerably depending on the transaction value and market sentiment. The estimated average dealing spread for the fund is 0.71% of the transaction value.

Comparing portfolio transaction costs for a range of funds may give a false impression of the relative costs of investing in them, for the following reasons:

  • Transaction costs do not necessarily reduce returns. The net impact of dealing is the combination of the effectiveness of the manager's investment decisions in improving returns and the associate costs of investment
  • Historic transaction costs are not an effective indicator of the future impact on performance
  • Transaction costs for buying and selling investments due to other investors joining or leaving the fund may be recovered from those investors. For further information see Pricing policy note below
  • Transaction costs vary from country to country
  • Transaction costs vary depending on the types of investment in which a fund invests
  • As the manager's investment decisions are not predictable, transaction costs are also not predictable

Pricing policy note

We operate a single pricing methodology for this fund and reserve the right to adjust the fund's price to protect your investment from the costs of buying and selling investments that result from other investors joining or leaving the fund. The amount of any such adjustment is calculated by reference to the estimated costs of dealing in the underlying investments.

Typical adjustments to the fund’s price are to increase it by 0.41% for net inflows and decrease it by 0.33% for new outflows.

We usually adjust the price to the maximum extent possible when the value of net contributions or withdrawals is significant, which helps to protect your investment from the costs of the resultant transactions.

1The fund's financial year end is 31 December 2015. Figures in these sections are as at 31 December 2015.

Holdings

 

Literature

Factsheets

Invesco Perpetual Global Targeted Returns Fund Factsheet  (405 KB)

KIIDs

Invesco Perpetual Global Targeted Returns Fund KIID acc  (221 KB)

Invesco Perpetual Global Targeted Returns Fund KIID acc (No trail)  (221 KB)

Invesco Perpetual Global Targeted Returns Fund KIID acc (Y)  (220 KB)

Invesco Perpetual Global Targeted Returns Fund KIID acc (Z)  (220 KB)

Application form

ICVC & ISA Application booklet 16/17  (235 KB)

Product & fund information

ICVC Supplementary Information Document (SID)  (4 MB)

ICVC ISA Key Features and Terms and Conditions  (1 MB)

Brochures

Invesco Perpetual Global Targeted Returns Fund consumer brochure  (1 MB)

Financial reports

Invesco Perpetual Diversified Returns Investment Series Annual Report 2014 (Short Report)  (94 KB)

Invesco Perpetual Diversified Returns Investment Series Annual Report 2014 (Long Form)  (299 KB)

Invesco Perpetual Diversified Returns Investment Series Interim Report 2016 (Short Report)  (127 KB)

Invesco Perpetual Diversified Returns Investment Series Interim Report 2016 (Long Report)  (407 KB)

Invesco Perpetual Diversified Returns Investment Series Interim Report 2015 (Short Report)  (125 KB)

Invesco Perpetual Diversified Returns Investment Series Interim Report 2015 (Long Form)  (294 KB)

Invesco Perpetual Diversified Returns Investment Series Annual Report 2015 (Long Form)  (576 KB)

Invesco Perpetual Diversified Returns Investment Series Annual Report 2015 (Short Report)  (145 KB)

Invesco Perpetual Diversified Returns Investment Series Interim Report 2014 (Short Report)  (112 KB)

Invesco Perpetual Diversified Returns Investment Series Interim Report 2014 (Long Form)  (232 KB)

Forms

ISA Additional Permitted Subscription application form  (90 KB)

Prospectus

Invesco Perpetual Diversified Returns Investment Series Prospectus  (762 KB)

Monthly Market Roundup - covering July 2016

Article

03 August 2016

Invesco Perpetual

We review global market developments in July, highlighting the best and worst performing sectors globally.

Monthly Market Roundup – covering September 2016

Article

05 October 2016

Invesco Perpetual

We review global market developments in September, highlighting the best and worst performing sectors globally.

Monthly Market Roundup – covering August 2016

Article

05 September 2016

Invesco Perpetual

We review global market developments in August, highlighting the best and worst performing sectors globally.

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. Past performance is not a guide to future returns.

The fund makes significant use of financial derivatives (complex instruments) which will result in the fund being leveraged and may 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. This counterparty risk is reduced by the Manager, through the use of collateral management.

The securities that the 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.

Important information

Yield and performance figures are based on the z (accumulation) share class.

All fund portfolio figures are as at date shown (source: Invesco Perpetual).

Performance figures are shown in sterling, inclusive of reinvested income and net of the ongoing charge and portfolio transaction costs to date shown. The figures do not reflect the entry charge paid by individual investors (source: Lipper).

The Historic Yield reflects distributions declared over the past twelve months as a percentage of the mid-market price of the fund, as at the date shown. It does not include any entry charge and investors may be subject to tax on their distributions.

Where Invesco Perpetual has expressed views and opinions, these may change. Where securities are mentioned they do not necessarily represent a specific portfolio holding and do not constitute a recommendation to purchase, hold or sell.

For the most up to date information on our funds, please refer to the relevant fund and share class-specific Key Investor Information Documents, the Supplementary Information Document, the Annual or Interim Short Reports and the Prospectus, which are available using the contact details shown.