Invesco Perpetual Global Balanced Index Fund
January 2017 (Content as at 31 December 2016)
- The objective of the Fund is to achieve long-term capital growth.
- The Fund invests primarily in shares of global companies and fixed interest securities.
- The Fund may use derivatives (complex instruments) to manage the Fund more efficiently, with the aim of reducing risk, minimising costs and/or generating additional capital or income.
- The Fund is actively managed using a “quantitative management” approach whilst referring to its benchmark which is made up of 50% FTSE All Share ex Investment Trusts index, 25% MSCI World ex UK index (Net Total Return), 15% FTSE Actuaries UK Conventional Gilts All Stocks Index and 10% 3 Month GBP LIBOR.
- We define “quantitative management” as mathematical and statistical techniques used for share selection.
Global equity markets had a good start into the third quarter, as markets participated in the post-EU Referendum equity rally. European equity markets ended up positively as macro data remained resilient, with no signs of the slow recovery being derailed by “Brexit” uncertainty. In the US, heightened uncertainty about the direction of the Fed’s monetary policy influenced capital markets as investors were factoring in a US interest rate rise. Labour market and economic numbers continued to improve but the Federal Reserve left interest rates unchanged. Against this backdrop, bond markets were mostly calm during the quarter compared to recent quarters. The 10-year Treasury yield climbed over the period while gilt yields fell. The 10-year Bund remained almost unchanged.
The fund is managed with 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. The investment team tightly constrain the risk taken at sector, industry, country and currency level. The diversified approach to stock selection favours companies that, in the team’s view, are attractively valued and have good earnings and price momentum. During the third quarter, the stock selection model showed flat to positive results in all major regions across the globe. Value displayed the best prognostic ability. Management & Quality and Market Sentiment showed mixed results, while Earnings Expectations showed a flat signal quality.
|Launch date||31 October 2006|
|Sector||IA Mixed Investment 40-85% Shares NR|
|Available in an ISA?||No|
|Title:||Global Head of Research|
|Team:||Invesco Quantitative Strategies|
|Title:||Director Portfolio Management|
|Team:||Invesco Quantitative Strategies|
|Accounting period ends||
|Accumulation (No Trail)||B1C41W5||GB00B1C41W57|
|Minimum lump sum||£250,000|
|Minimum monthly amount||£20|
|Minimum additional lump sum||£250,000|
One-off charges taken before you invest
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 £250,000, an entry charge of 5% means £237,500 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?".
There is no exit charge for the fund.
Charges taken from the fund over a year
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
No performance fee is charged.
Portfolio transaction costs1
On average, over the last three financial years, the equity (shares) portion of the fund incurred broker commissions of 0.02% 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 is recovered directly from investors joining and leaving the fund.
The bond portion of the fund invests in fixed interest securities which have no separately identifiable transaction costs; these costs form part of the dealing spread between the buying and selling prices of the underlying investments.
When the fund buys or sells equities or bonds, 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. 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 0.30% 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.
Product & fund information
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.
Yield and performance figures are based on the accumulation (no trail) 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. 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.
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.