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Invesco Perpetual Global ex UK Enhanced Index Fund

January 2017 (Content as at 31 December 2016)

Please note: You can currently only invest in this fund via a qualified financial adviser or a third party fund platform.

Additional share types were launched on 28 July 2016.

The fund's objective changed on 28 July 2016.


The companies we look for

In today’s world of low-returns, every little extra, in performance terms, helps.

The Invesco Perpetual Global ex UK Enhanced Index Fund seeks to capture both the return of the MSCI World ex UK index, and achieve an additional return, while maintaining a similar level of risk over a full market cycle (5 - 10 years).

The fund managers look to identify the factors that have the potential to drive excess returns, and thereby generate meaningful outperformance.

Fund holdings

Typical number of stocks in the fund: c400

The stocks held in the fund will primarily be those of the MSCI World ex UK index, which currently comprises 1527 stocks1, although there is flexibility for a proportion of the stocks held in the fund to be from outside of this index.

1 MSCI, as at 29 July 2016.

Overview

Objective

The fund aims to achieve long term capital growth and outperform the MSCI World ex UK Index (net total return) (the “Index”) by investing primarily in a portfolio of investments in global companies, excluding the UK. The fund aims to outperform the Index net of fees over a full market cycle (typically 5-10 years). There is no guarantee that the fund will achieve its target and an investor may not get back the full amount invested. The fund seeks to achieve its objective following a systematic investment process, with a high correlation to the Index. The fund uses a range of factors to evaluate the relative attractiveness of a stock together with an assessment of risk, to build a portfolio that shares the broad characteristics of the Index. The fund is actively managed and will not replicate the Index in its entirety. The fund will primarily invest in equities, and may also invest in cash, cash equivalents, money market instruments, warrants, collective investment schemes and other transferable securities. The fund may enter into financial derivative instruments for efficient portfolio management purposes only.

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

Global equity markets continued to rise in December, ending an initially volatile year on a strongly positive note. US equity markets continued their positive trend that had started after the election and further benefitted from a number of encouraging economic data prints in December. The US Federal Reserve’s growing confidence in its outlook for the US economy and inflation backed its decision to finally raise interest rates by 0.25%. In Europe, markets surged in the aftermath of the Italian referendum. In economic news, the European Central Bank decided to extend its quantitative easing programme to the end of 2017. Turning to Japan, the equity market ended the month higher, rallying on a combination of a better outlook for global growth in 2017 and yen weakness versus the US dollar post the US election.

Fund strategy

The performance of the fund is generated through a systematic factor based investment process driven by four concepts: Earnings Expectations, Market Sentiment, Management & Quality and Value. Relative risk is controlled with the help of an optimiser, an analysis tool that recommends trades to maximise portfolio exposure to the selected stocks within pre-determined risk/return parameters. In terms of portfolio construction, we tightly constrain the risk taken at sector, industry, country and currency level. Our diversified approach to stock selection favours companies that, in our view, are attractively valued and have good earnings and price momentum and evidence that management supports shareholder value. In December 2016, the main driver of positive relative fund performance was our exposure to stocks with attractive valuations. In contrast, our momentum related concepts Earnings Expectations and Market Sentiment deducted from performance while Management & Quality was flat.

Key facts
Product type ICVC
Launch date 25 May 2006
Fund size £409.86m
Historic yield 1.73%
Sector IA Global NR
Available in an ISA? No

Fund manager

Michael Fraikin

Title: Global Head of Research
Team: Invesco Quantitative Strategies

Alexander Uhlmann

Title: Director Portfolio Management
Team: Invesco Quantitative Strategies
Fund details
Fund currency GBP
Trading frequency Daily
Accounting period ends 31 August
28 February
Share types
SEDOL ISIN
Accumulation (No Trail) B13G5V7 GB00B13G5V72
Income (No Trail) BZ8GWQ4 GB00BZ8GWQ44
Y (Acc) BZ8GWR5 GB00BZ8GWR50
Y (Inc) BZ8GWS6 GB00BZ8GWS67
Z (Acc) BZ8GWT7 GB00BZ8GWT74
Z (Inc) BZ8GWV9 GB00BZ8GWV96
Investment levels
Minimum monthly amount £20
Minimum additional lump sum £100
Maximum fund charges
Initial charge 5%
Exit charge None

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 0.01%, 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 is 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 0.06% 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, including any dealing spreads, broker commissions and transfer taxes.

Typical adjustments to the fund's price are to increase it by 0.05% for net inflows or decrease it by 0.05% 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 August 2016. Figures in these sections are as at 31 August 2016.

Holdings

 

Literature

Factsheets

Invesco Perpetual Global ex UK Enhanced Index Fund Factsheet  (208 KB)

KIIDs

Invesco Perpetual Global ex UK Enhanced Index Fund KIID acc (No trail)  (206 KB)

Invesco Perpetual Global ex UK Enhanced Index Fund KIID acc (Y)  (194 KB)

Invesco Perpetual Global ex UK Enhanced Index Fund KIID acc (Z)  (194 KB)

Invesco Perpetual Global ex UK Enhanced Index Fund KIID inc (No trail)  (195 KB)

Invesco Perpetual Global ex UK Enhanced Index Fund KIID inc (Y)  (194 KB)

Invesco Perpetual Global ex UK Enhanced Index Fund KIID inc (Z)  (194 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 Enhanced Index funds brochure  (124 KB)

Financial reports

Invesco Perpetual Global Investment Series Interim Report 2016 (Short Report)  (418 KB)

Invesco Perpetual Global Investment Series Interim Report 2016 (Long Form)  (770 KB)

Invesco Perpetual Global Investment Series Interim Report 2015 (Short Report)  (356 KB)

Invesco Perpetual Global Investment Series Annual Report 2011 (Short Report)  (185 KB)

Invesco Perpetual Global Investment Series Interim Report 2013 (Short Report)  (246 KB)

Invesco Perpetual Global Investment Series Annual Report 2012 (Short Report)  (262 KB)

Invesco Perpetual Global Investment Series Annual Report 2013 (Short Report)  (272 KB)

Invesco Perpetual Global Investment Series Interim Report 2014 (Short Report)  (333 KB)

Invesco Perpetual Global Investment Series Interim Report 2015 (Long Form)  (748 KB)

Invesco Perpetual Global Investment Series Interim Report 2013 (Long Form)  (422 KB)

Invesco Perpetual Global Investment Series Interim Report 2014 (Long Form)  (723 KB)

Invesco Perpetual Global Investment Series Annual Report 2012 (Long Form)  (583 KB)

Invesco Perpetual Global Investment Series Annual Report 2011 (Long Form)  (643 KB)

Invesco Perpetual Global Investment Series Annual Report 2013 (Long Report)  (947 KB)

Invesco Perpetual Global Investment Series Annual Report 2014 (Long Form)  (1 MB)

Invesco Perpetual Global Investment Series Annual Report 2014 (Short Report)  (359 KB)

Invesco Perpetual Global Investment Series Annual Report 2015 (Short Report)  (349 KB)

Invesco Perpetual Global Investment Series Annual Report 2015 (Long Form)  (1 MB)

Fund updates

Invesco Perpetual Global ex UK Enhanced Index Fund Infosheet  (141 KB)

Invesco Perpetual Global Equities market update

Video

21 October 2015

Nick Mustoe, Chief Investment Officer, Invesco Perpetual, and Stephen Anness, Global Equities Fund Manager, Invesco Perpetual

In their recent live interview, Nick and Stephen discussed the outlook for the global equity markets and answered questions on their stock-picking style, the fall-out from China’s slowdown and the US Federal Reserve’s decision not to raise US Interest rates.

Nick Mustoe: “I do not think the world is about to tip into global recession”

Video

15 February 2016

Nick Mustoe, Chief Investment Officer, Invesco Perpetual

Nick Mustoe considers the extreme start to the year for global financial markets driven by concerns around Chinese economic growth and the decline in the oil price.

Invesco Perpetual Select Trust plc Global Equity Income update

Video

14 November 2016

Nick Mustoe, Chief Investment Officer and Portfolio Manager, Invesco Perpetual

Nick Mustoe shares his thoughts on the Global Equity Income Share Portfolio of the investment trust, and gives his views on the regions and sectors he currently favours.

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 may use derivatives (complex instruments) in an attempt to reduce the overall risk of its 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 fund. The Manager, however, will ensure that the use of derivatives within the fund does not materially alter the overall risk profile of the fund.

Important information

Yield and performance figures are based on the z (accumulation) share class. As this was launched on 28 July 2016, for the periods prior to this launch date, performance figures are based on the accumulation (no trail) 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. Benchmark performance is calculated on an equivalent basis (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.