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Invesco Perpetual Balanced Risk 6 Fund

March 2017 (Content as at 28 February 2017)

Overview

Objective

The Invesco Perpetual Balanced Risk 6 Fund aims to achieve long term capital growth through different economic environments by investing in derivatives and other financially linked instruments to gain exposure to three main asset classes: fixed income, equities and commodities.

The Fund seeks to achieve this objective by (1) balancing the risk contribution from each of these asset classes to build the strategic allocation and (2) adjusting the risk contribution tactically to make the portfolio more adaptive to the near-term environment. The Fund will aim to target 6% average volatility over a full market cycle; however, no assurance can be made that these targets will be met. The investment policy for the Fund is set out in more detail in the most recent prospectus.

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

Developed equity markets have displayed a sense of exuberance in the wake of the US presidential election. In February, investor optimism pushed share prices further to historic highs, while US consumer confidence posted higher-than-expected readings towards the end of the month. Some of this newfound optimism seems to rest on the idea of a meaningful tax reform and the launch of major infrastructure projects – items that have been touted by the new administration for weeks, though specific details continue to be scarce. During the month, developed government bond markets were also able to overcome continued jawboning by central banks, with yields having fallen across most markets, while within commodities, the strength in metals outweighed the weakness seen in agriculture and energy prices.

Fund strategy

The fund produced a positive return over the month. Exposure to developed government bonds was the main contributor to results. German Bunds moved higher, likely due to renewed fears of a Greek crisis, as well as anxiety over nationalist candidates gaining ground in the polls in France and the Netherlands. Additionally, the push for a hard Brexit by Theresa May and opposition from Scotland also contributed to the rise of UK Gilts. Equity market exposure also contributed to returns. In the US, share prices powered ahead following the outcome of the presidential election. Outside the US, equity markets also enjoyed a robust month overall. Within commodities, exposure to agriculture and energy generally hurt returns. However, precious metals contributed positively as gold and silver both saw gains despite a strengthening US dollar. This may indicate that beneath the layer of optimism surrounding the financial markets, an underlying ‘flight to safety’ sentiment is slowly settling in.

Key facts
Product type ICVC
Launch date 20 February 2012
Fund size £6.84m
Historic yield 0.15%
Sector IA Specialist NR
Available in an ISA? Yes

Fund manager

Scott E Wolle

Title: Chief Investment Officer
Team: Invesco Global Strategies - Global Asset Allocation
Fund details
Fund currency GBP
Trading frequency Daily
Accounting period ends 31 March
30 September
Share types
SEDOL ISIN
Accumulation B4NN8K9 GB00B4NN8K91
Accumulation (No Trail) B3SYLV2 GB00B3SYLV29
Y (Acc) BJ04F09 GB00BJ04F091
Z (Acc) B8N44F7 GB00B8N44F71
Investment levels
Minimum lump sum £500

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 costs1

On average, over the last three financial years, the fund incurred broker commissions of 0.01% and transfer taxes of 0.00%, 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 0.01% 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 note1

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 0.01% for net inflows or decrease it by 0.01% for net 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 March 2016. Figures in these sections are as at 31 March 2016.

Holdings

 

Literature

Factsheets

Invesco Perpetual Balanced Risk 6 Fund Factsheet  (113 KB)

KIIDs

Invesco Perpetual Balanced Risk 6 Fund KIID acc  (209 KB)

Invesco Perpetual Balanced Risk 6 Fund KIID acc (No trail)  (209 KB)

Invesco Perpetual Balanced Risk 6 Fund KIID acc (Y)  (209 KB)

Invesco Perpetual Balanced Risk 6 Fund KIID acc (Z)  (209 KB)

Application form

ICVC & ISA Application booklet 16/17  (238 KB)

ICVC & ISA Application booklet 17/18  (194 KB)

Product & fund information

ICVC Supplementary Information Document (SID)  (4 MB)

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

Financial reports

Invesco Perpetual Diversified Balanced Risk Investment Series Annual Report 2016 (Short Report)  (213 KB)

Invesco Perpetual Diversified Balanced Risk Investment Series Annual Report 2015 (Short Report)  (210 KB)

Invesco Perpetual Diversified Balanced Risk Investment Series Annual Report 2015 (Long Report)  (650 KB)

Invesco Perpetual Diversified Balanced Risk Investment Series Interim Report 2015 (Short Report)  (231 KB)

Invesco Perpetual Diversified Balanced Risk Investment Series Annual Report 2016 (Long Form)  (612 KB)

Invesco Perpetual Diversified Balanced Risk Investment Series Interim Report 2015 (Long Form)  (374 KB)

Invesco Perpetual Diversified Balanced Risk Investment Series Interim Report 2016 (Long Report)  (451 KB)

Invesco Perpetual Diversified Balanced Risk Investment Series Interim Report 2016 (Short Report)  (254 KB)

Forms

ISA Additional Permitted Subscription application form  (92 KB)

Prospectus

Invesco Perpetual Balanced Risk Prospectus  (825 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 will make 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 funds’ 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 will gain exposure to commodities which are generally considered to be high risk investments and may result in large fluctuations in the value of the fund. Fixed income securities to which the fund is exposed are open to credit risk which may result in issuers not always making interest and/or other payments nor is the solvency of the issuers guaranteed.

Important information

Yield and performance figures are based on the z (accumulation) share class. As this was launched on 12 November 2012, for the periods prior to this launch date, performance figures are based on the accumulation share class, without any adjustment for fees. Performance figures for all share classes can be found in the relevant Key Investor Information Document.

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 Invesco Global Asset Allocation Team comprises CIO Scott Wolle*, Portfolio Managers Mark Ahnrud, Chris Devine, Scott Hixon, Dr Bernhard Pfaff and Christian Ulrich. *Shown in picture.

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.