Invesco Perpetual UK Equity Pension Fund
As at 31 March 2015
Market commentary
The FTSE All-Share index rose by 4.7% in the first quarter of 2015 (£, total return).
Over the quarter there were positive contributions from Allied Minds, BT Group
and Imperial Tobacco. Allied Minds’ share price rose after its inclusion in the MSCI
Developed Market indices and on continuing positive news-flow from some of its
underlying investments. BT Group benefited from news of its proposed acquisition of
EE and success in acquiring Premier League football rights for its BT Sport division.
Among the detractors were Drax Group and BTG. The share price of Drax Group
fell sharply amid continuing uncertainty as to whether the EU approve government
subsidies for its electricity generated by biomass. On a relative basis, the fund remains
underweight the energy sector as a whole. The share price of BTG retreated during the
period after a strong run in 2014, in spite of guidance from the company that its full
year revenue is expected to be marginally higher than previously anticipated.
Fund Manager: Mark Barnett
Key facts
Fund Manager
Launch date
Launch date through
Invesco Perpetual
Fund size
Benchmark/Index
FTSE All-Share Index
Mark Barnett
1 October 1991
1 February 1999
£382.67m
The speed and severity of the decline in the oil price neatly encapsulates both sides of
the economic debate. On the positive side, it is certainly a boost to consumption in the
developed world. However, it is clearly a deflationary force and represents a reminder
of the underlying weakening demand in the Chinese economy.
In spite of headier valuations across the UK equity market as a whole, there remain
pockets of value, particularly amongst those companies able to grow earnings and
dividends in a low growth world. We remain positive on the medium term outlook for UK
equities against other geographies and asset classes.
Investment objective
The Invesco Perpetual UK Equity Pension Fund aims for long-term capital growth by
investing mainly in shares of companies in the UK.
The fund invests mainly in the shares of UK companies, with the balance invested in
global equities. The fund may invest in listed securities, unlisted securities, money
market instruments, warrants, collective investment schemes, deposits, cash and
other permitted investments. The fund may use derivatives for efficient portfolio
management and reduction in investment risk.
Annualised performance
% growth
3 years
5 years
Fund
14.27
12.12
Benchmark/Index
10.63
8.34
Standardised rolling 12-month performance
% growth
31.03.1031.03.1131.03.1231.03.13 31.03.14
31.03.1131.03.1231.03.1331.03.14 31.03.15
Fund 9.85 8.0815.5113.62 13.68
Past performance is not a guide to future returns. The standardised past performance information is updated on a quarterly basis. Source:
Lipper. Should you require up-to-date past performance information this is available by contacting our Pension Support Team on 0800 169 6282.
Invesco Perpetual UK Equity Pension Fund
As at 31 March 2015
Top 10 holdings %
Allied Minds
6.44
BT4.44
Imperial Tobacco
4.33
British American Tobacco
4.31
Roche3.95
AstraZeneca3.87
BAE Systems
3.83
GlaxoSmithKline3.17
Provident Financial
2.86
BP2.70
Total Top 10 Holdings (%)
39.89
No of holdings
73
Industry breakdown %
Financials32.68
Health Care
20.12
Industrials16.22
Consumer Goods
11.35
Consumer Services
6.48
Utilities4.51
Telecommunications4.44
Oil & Gas
2.70
Basic Materials
1.13
Technology0.27
Cash0.10
Total100
Performance and portfolio data as at
31 March 2015. Performance
figures are total returns, denominated
in sterling, net of fees. The returns are
calculated using the quoted dealing prices.
A single swinging price is determined
according to net cash flows. Returns are
net of the annual management charge
payable by retail investors of 1.25%
(source: Invesco Perpetual).
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.
Some of the pension funds may use
derivatives (complex instruments) in an
attempt to reduce the overall risk of its
investments, reduce the costs of investing
and/or to seek to attain higher levels of
income or capital growth, although this may
not be achieved. Such instruments may cause
greater fluctuations of the net asset value of
the fund concerned.
Some of the pension funds have the ability
to invest in private and unlisted equities. In
addition to typical equity investment risks
there may be some additional specific risks
including: lack of liquidity which could impact
the fund’s ability to sell such investments at
their true value; lack of pricing transparency;
and less readily available information on
the company.
Where FTSE sector breakdown categories
are provided, the Industry Classification
Benchmark is a joint product of FTSE
International Limited and Dow Jones &
Company, Inc. and has been licensed for use.
The investment exposure offered by the Fund
was previously available through a unit trust,
the UK Exempt Fund, which was wound up on
31 January 1999 and converted to a pension
fund. Fund performance prior to that date
was subject to unit trust taxation and charging
structures.
Important information
Where Invesco Perpetual has expressed
views and opinions, these may change.
For more information on this fund,
please refer to the most up-to-date
Invesco Perpetual Trustee Investment
Plan Brochure and Key Features. This
information is available on the Invesco
Perpetual Pensions Website:
www.invescoperpetual.co.uk/pensions
Further information
Invesco Perpetual is a business name of Invesco
Perpetual Life Limited.
Authorised by the Prudential Regulation
Authority and regulated by the
Financial Conduct Authority and the Prudential
Regulation Authority.
Head Office and Registered Address Perpetual
Park, Perpetual Park Drive, Henley-on-Thames,
Oxfordshire, RG9 1HH, UK.
Registered in England and Wales No. 3507379.
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