Register Log-in Investor Type

News

Outperformance from all four of Invesco Perpetual Select portfolios

IVPB/IVPG/IVPM/IVPU:

Invesco Perpetual Select has published its annual results for the year ended 31 May 2021, which show outperformance from all four of its portfolios of their benchmarks during the year. The announcement includes the following highlights:

  • All four portfolios delivered positive outperformance over the period.
  • Dividends rose to 6.65p per UK Equity Share and 7.10p per Global Equity Income Share.
  • Company size increased to £230.6 million at 31 May 2021 following the combination of Invesco Income Growth Trust plc with the UK Equity Share Class.
  • Lower investment management fees negotiated for the UK Equity & Global Equity Income share classes.
  • UK Equity portfolio now managed in partnership between James Goldstone and Ciaran Mallon, with income growth added to the objective.
  • Derek Steeden appointed to run Managed Liquidity Share Portfolio.
  • Change of benchmark for Balanced Risk Allocation Portfolio.

Performance

The NAV total return of the UK Equity Share Portfolio over the year was 34.6%, which compares with the total return of 23.1% from the FTSE All-Share Index. The share price total return was 31.6%.

The NAV total return of the Global Equity Income Share Portfolio over the year was 35.9%, which compares with the total return from the MSCI World Index (£) of 22.3%. The share price total return was 32.6%.

The NAV total return of the Balanced Risk Allocation Share Portfolio was 25.4%, which compares with its benchmark of 3 months LIBOR plus 5%, which returned 5.1%. The share price total return was 26.4%.

The NAV total return of the Managed Liquidity Share Portfolio was 3.6%. The share price total return was 0.5%. Shareholders will recall that a historical management fee error was reported in the Chairman’s Statement for the 30 November 2017 half year report, which resulted in an overcharging of management fees by the Manager. As part of the restitution, it was agreed that the Manager would make payments directly to affected shareholders. Having exhausted all reasonable avenues to locate all affected shareholders, an amount remained unpaid for shareholders that could not be located and has been returned to the Managed Liquidity Share portfolio under the restitution agreement. This receipt has contributed to a 2% uplift to the NAV at the year end.

Managed liquidity investment management changes

The Managed Liquidity Portfolio saw Derek Steeden being appointed as portfolio manager with effect from 1 December 2020. Derek is a Portfolio Manager for the Invesco Investment Solutions team, which provides customised, multi-asset investment strategies for clients. He joined Invesco in 2019, having begun his investment career in 2005. The Portfolio continues to be invested in other collective investment vehicles, but the principal investment was changed to the iShares – Sterling Ultrashort Bond UCITS ETF.

UK Equity Share Portfolio – assets combined with Invesco Income Growth Trust

On 23 April 2021 the proposed combination of Invesco Income Growth Trust plc (IIGT) with the Invesco Perpetual Select’s UK Equity Share Portfolio was completed, resulting in a transfer of approximately £120 million of assets into the Company in exchange for the issue of new UK Equity shares to IIGT shareholders.

Ciaran Mallon, who has managed IIGT’s portfolio since 2005, became joint portfolio manager of the UK Equity Share Portfolio, with James Goldstone, who has managed it since October 2016. Ciaran and James jointly manage Invesco’s largest open-ended UK equity funds, which have outperformed their benchmark since appointment. The costs of the transaction were significantly mitigated by Invesco waiving its accrued performance fee of £531,000 in respect of the UK Equity Share Portfolio.

UK Equity Share Portfolio – fee changes

Improved management fee arrangements apply from 23 April 2021. The flat annual management fee of 0.55% of net assets payable by the UK Equity Share Portfolio was reduced, with 0.55% now payable on its net assets up to £100 million and 0.50% over £100 million; and the performance fee was also removed. In the interests of alignment, the 0.55% management fee on the Company’s Global Equity Income Share Portfolio was amended in the same way, and its performance fee removed.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please review our cookie, privacy & data protection and terms and conditions policies and, if you accept, please select your place of residence and whether you are a private or professional investor.

You live in…

You are a…