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Invesco Perpetual Children's Fund

January 2017 (Content as at 31 December 2016)

With effect from 30 December 2016, Tim Marshall became fund manager of the Invesco Perpetual Children's Fund, taking over day-to-day management responsibility from Martin Walker.


Overview

Objective

The Invesco Perpetual Children's Fund aims to achieve longer term capital growth through a portfolio of investments in UK companies. 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

UK equity markets rose again in December, ending an initially volatile year on a strongly positive note as the FTSE 100 index closed 2016 at an all-time high level. The mining and oil & gas sectors, as so often in 2016, provided much of the impetus for the rise, after OPEC agreed on its first production cut since 2008 and the oil price hit its highest level since 2015. In a year of extremes (and of the unexpected), UK inflation, as measured by the Consumer Prices Index (CPI), rose by 1.2% in the year to November 2016, its highest level since October 2014. US 10-year Treasury yields rose to 2.6%, their highest level since 2014, as the US Federal Reserve raised its short term interest rates by a quarter of a percentage point – only its second rate hike in 10 years.

Fund strategy

The fund manager is focused on valuation and bottom-up analysis in his stock picking. Despite the potential for uncertainty following the Brexit vote, the fund manager believes this has been more than reflected in the valuations of UK exposed companies. The fund manager expects the oil majors to successfully adapt to the lower oil price, hence the overweight position in this sector. While low interest rates have put pressure on domestic banks, the sector has built up a strong capital position which he believes is yet to be reflected in valuations.

Key facts
Product type ICVC
Launch date 20 April 1988
Fund size £220.57m
Historic yield 2.65%
Sector IA UK All Companies NR
Available in an ISA? No

Fund manager

Tim Marshall

Title: Fund Manager
Team: Invesco Perpetual - UK Equities
Fund details
Fund currency GBP
Trading frequency Daily
Accounting period ends 30 June
31 December
Share types
SEDOL ISIN
Accumulation 3303104 GB0033031047
Y (Acc) BJ04F65 GB00BJ04F653
Z (Acc) B8N46K6 GB00B8N46K64
Investment levels
Minimum lump sum £50

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 0.11% and transfer taxes of 0.14%, 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 0.36% 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 0.71% for net inflows or decrease it by 0.38% 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 December 2015. Figures in these sections are as at 31 December 2015.

Holdings

 

Literature

Factsheets

Invesco Perpetual Children’s Fund Factsheet  (239 KB)

KIIDs

Invesco Perpetual Children’s Fund KIID acc  (187 KB)

Invesco Perpetual Children’s Fund KIID acc (Y)  (185 KB)

Invesco Perpetual Children’s Fund KIID acc (Z)  (185 KB)

Application form

Invesco Perpetual Children’s Fund Application Form  (69 KB)

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

Product & fund information

ICVC Supplementary Information Document (SID)  (4 MB)

Brochures

Invesco Perpetual Children’s fund Brochure  (1 MB)

Direct Debit amend forms

Invesco Perpetual Children’s Amendment to Direct Debit Form  (55 KB)

Financial reports

Invesco Perpetual UK Investment Series Annual Report 2012 (Short Report)  (212 KB)

Invesco Perpetual UK Investment Series Annual Report 2012 (Long Form)  (454 KB)

Invesco Perpetual UK Investment Series Interim Report 2012 (Long Form)  (328 KB)

Invesco Perpetual UK Investment Series Annual Report 2014 (Short Report)  (338 KB)

Invesco Perpetual UK Investment Series Interim Report 2012 (Short Report)  (201 KB)

Invesco Perpetual UK Investment Series Interim Report 2016 (Long Form)  (668 KB)

Invesco Perpetual UK Investment Series Annual Report 2014 (Long Form)  (976 KB)

Invesco Perpetual UK Investment Series Interim Report 2016 (Short Report)  (333 KB)

Invesco Perpetual UK Investment Series Interim Report 2014 (Short Report)  (339 KB)

Invesco Perpetual UK Investment Series Interim Report 2014 (Long Form)  (639 KB)

Invesco Perpetual UK Investment Series Interim Report 2013 (Short Report)  (207 KB)

Invesco Perpetual UK Investment Series Annual Report 2013 (Short Report)  (312 KB)

Invesco Perpetual UK Investment Series Annual Report 2013 (Long Form)  (787 KB)

Invesco Perpetual UK Investment Series Interim Report 2013 (Long Form)  (412 KB)

Invesco Perpetual UK Investment Series Interim Report 2015 (Long Form)  (636 KB)

Invesco Perpetual UK Investment Series Interim Report 2015 (Short Report)  (360 KB)

Invesco Perpetual UK Investment Series Annual Report 2015 (Short Report)  (373 KB)

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

Invesco Perpetual Select Trust plc update

Video

15 March 2016

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

Nick Mustoe shares his thoughts on the Invesco Perpetual Select Trust plc (Global Equity Income Share Portfolio) which he manages, along with future challenges we might face.

Invesco Perpetual Select Trust plc UK Equity update

Video

21 November 2016

James Goldstone, UK Equities Portfolio Manager, Invesco Perpetual

In his latest video, James Goldstone gives us an insight into his investment approach and managing the UK Equity Share Portfolio.

UK equities – 2017 investment outlook

Video

29 December 2016

Mark Barnett, Head of UK Equities, Invesco Perpetual

UK equity valuations face four main challenges in 2017, which may force a reassessment of current valuations.

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.

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.