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Invesco Perpetual European Equity Income Fund

May 2017 (Content as at 30 April 2017)

Overview

Objective

The Invesco Perpetual European Equity Income Fund aims to generate a rising level of income, together with long-term capital growth investing primarily into European equities, excluding the UK. In pursuing this objective, the fund managers may include investments that they consider appropriate which include transferable securities, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions as detailed in Appendix 2 of 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

European equity markets surged in a relief rally following the first round of the French presidential election. Centrist-candidate Emmanuel Macron and far-right candidate Marine Le Pen made it to the final round of the race (taking place on May 7th). The result of the first ballot was welcomed by investors given expectations of Macron winning the face-off; his reformist agenda and commitment to the European project appeased some market worries. On the macroeconomic front, data signaled a strong start to the second quarter amid buoyant demand and strong growth in employment. The Eurozone composite Purchasing Managers Index (PMI), a private sector activity survey, accelerated to its fastest pace in six years. The economic confidence indicator, measured by the European commission, reached the highest level since the global financial crisis in 2007. On the monetary policy front, European Central Bank (ECB) president Mario Draghi showed growing enthusiasm about the state of the euro-area economy however cautioned that underlying inflation pressures remained too soft to contemplate paring back stimulus. The ECB kept interest rates unchanged in April and maintained quantitative-easing.

Fund strategy

The fund strategy rests primarily on rigorous fundamental analysis, seeking to invest in companies with what we view as attractive valuations, having the potential to pay and grow their dividends, and deliver capital appreciation. In April, we raised the fund’s exposure to the health care sector, easing the underweight position relative to the FTSE World Europe ex-UK Index benchmark. A new holding was started in Fresenius Medical Care, a global leader in the dialysis segment. We believe the German company is well positioned for further growth thanks to a dominant market position and robust fundamentals. Meanwhile, we trimmed some positions within the financials sector after a period of strong performance. We also sold out of BMW, the German car maker as valuations reached fuller levels in our view. At month-end, oil and gas remained the largest overweight sector and consumer goods the biggest underweight sector relative to the benchmark.

Key facts
Product type ICVC
Launch date 12 December 2007
Fund size £693.28m
Historic yield 3.3%
Sector IA Europe Excluding UK NR
Available in an ISA? Yes

Fund manager

Stephanie Butcher

Title: Fund Manager
Team: Invesco Perpetual - European Equities
Fund details
Fund currency GBP
Trading frequency Daily
Accounting period ends 30 April
31 October
Share types
SEDOL ISIN
Accumulation B28J0S0 GB00B28J0S09
Income B28J0T1 GB00B28J0T16
Accumulation (No Trail) B28J0V3 GB00B28J0V38
Income (No Trail) B28J0W4 GB00B28J0W45
Y (Acc) BJ04G28 GB00BJ04G289
Y (Inc) BJ04G39 GB00BJ04G396
Z (Acc) B8N44L3 GB00B8N44L32
Z (Inc) B8N44M4 GB00B8N44M49
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 0.19% and transfer taxes of 0.04%, 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 0.07% 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 0.24% for net inflows or decrease it by 0.12% 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 October 2016. Figures in these sections are as at 31 October 2016.

Holdings

 

Literature

Factsheets

Invesco Perpetual European Equity Income Fund Factsheet  (266 KB)

KIIDs

Invesco Perpetual European Equity Income Fund KIID acc  (200 KB)

Invesco Perpetual European Equity Income Fund KIID acc (No trail)  (200 KB)

Invesco Perpetual European Equity Income Fund KIID acc (Y)  (198 KB)

Invesco Perpetual European Equity Income Fund KIID acc (Z)  (199 KB)

Invesco Perpetual European Equity Income Fund KIID inc  (200 KB)

Invesco Perpetual European Equity Income Fund KIID inc (No trail)  (200 KB)

Invesco Perpetual European Equity Income Fund KIID inc (Y)  (198 KB)

Invesco Perpetual European Equity Income Fund KIID inc (Z)  (199 KB)

Application form

ICVC & ISA Application booklet 17/18  (190 KB)

Product & fund information

ICVC Supplementary Information Document (SID)  (4 MB)

Financial reports

Invesco Perpetual European Investment Series Interim Report 2015 (Short Report)  (231 KB)

Invesco Perpetual European Investment Series Interim Report 2016 (Short Report)  (266 KB)

Invesco Perpetual European Investment Series Interim Report 2015 (Long Form)  (445 KB)

Invesco Perpetual European Investment Series Annual Report 2015 (Short Report)  (265 KB)

Invesco Perpetual European Investment Series Annual Report 2015 (Long Form)  (732 KB)

Invesco Perpetual European Investment Series Annual Report 2016 (Long Form)  (1 MB)

Invesco Perpetual European Investment Series Annual Report 2016 (Short Report)  (352 KB)

Invesco Perpetual European Investment Series Interim Report 2016 (Long Form)  (438 KB)

Forms

ISA Additional Permitted Subscription application form  (69 KB)

European Equites: update and outlook for 2016

Audio

18 November 2015

Jeff Taylor, Head of European Equities, Invesco Perpetual and Stephanie Butcher, European Equities Fund Manager, Invesco Perpetual

What is the outlook for European equity markets? Does China have the potential to derail a European recovery? Where are the opportunities in 2016?

European equities – 2017 investment outlook

Video

07 December 2016

Jeff Taylor, Head of European Equities, Invesco Perpetual

European equities remain unloved after a volatile 2016, but what can we expect going into 2017?

Brexit – the pros and cons

Article

04 August 2015

John Greenwood, Chief Economist, Invesco Ltd

The British public will soon have a chance to vote in the “in-out” referendum on continued membership of the European Union? Will the economic benefits of staying in the European project outweigh the costs? If the UK does decide to leave, what are the options available?

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 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. Sector average 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. The fund’s ongoing charge is charged to capital. This has the effect of increasing the distributions for the year by the amount of the ongoing charge and constraining the fund’s capital performance to an equivalent extent.

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.