TIDMIVPU TIDMIVPG TIDMIVPH TIDMIVPM
INVESCO PERPETUAL SELECT TRUST PLC
HALF-YEARLY FINANCIAL REPORT
SIX MONTHS ENDED 30 NOVEMBER 2011
.
Invesco Perpetual Select Trust plc (`the Company') is an investment trust which
is intended as a long-term investment vehicle for investors and has an
indefinite life.
The Company provides shareholders with a choice of investment policies and
objectives, each intended to generate attractive risk-adjusted returns from
segregated portfolios.
The Company's share capital comprises the following four classes of shares each
of which has its own separate portfolio of assets and liabilities:
* UK Equity;
* Global Equity Income (formerly Global Equity);
* Hedge Fund (to be renamed Balanced Risk); and
* Managed Liquidity.
Invesco Asset Management Limited manages the UK Equity, Global Equity Income
and Managed Liquidity Share Portfolios. The Hedge Fund Share Portfolio is
currently advised by Fauchier Partners, a hedge fund specialist.
Investment Policy
The Company's Investment Policy to 15 November 2011, which includes the
investment objectives, policies and risks and investment limits for the Company
and the separate Portfolios, is disclosed in full on pages 25 to 28 of the 2011
annual financial report, which is available to view at or download from
www.invescoperpetual.co.uk/investmenttrusts. Within this report, the investment
objective of each Portfolio is shown at the start of the applicable Portfolio
Manager's Report.
At a General Meeting held on 15 November 2011 shareholders approved changes to
the Global Equity and Hedge Fund Portfolios (the UK Equity and Managed
Liquidity Portfolios remain unchanged) that were set out in a circular to
shareholders dated 14 October 2011. The new Global Equity Income investment
objective and policy are now in effect and are set out in an appendix to this
report. The Hedge Fund Portfolio will be renamed the Balanced Risk Portfolio in
February 2012 when its new investment objective and policy, which are set out
in the appendix, become effective.
Share Class Conversion
The Company enables shareholders to tailor their asset allocation to reflect
their view of prevailing markets through the opportunity to convert between
share classes every three months. Conversions should not be treated as
disposals for the purposes of capital gains tax.
.
PERFORMANCE STATISTICS
The Company commenced trading on 23 November 2006.
| Source: Thomson Reuters
UK Equity Share Portfolio
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED
30 NOVEMBER 31 MAY 30 NOVEMBER
2011
2011 2011 TOTAL RETURN
Net asset value| - total return -3.2%
Share price| - total return -12.5%
Discount at period end 13.6% 4.1%
FTSE All-Share Index| - total -7.4%
return
Revenue return per share 2.1p 4.1p
Dividend - first interim 2.00p 1.65p
- second interim 0.85p 2.55p
- total 2.85p 4.20p
Global Equity Share Portfolio
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED
30 NOVEMBER 31 MAY 30 NOVEMBER
2011
2011 2011 TOTAL RETURN
Net asset value| - total return -11.1%
Share price| - total return -14.5%
Discount at period end 8.6% 5.3%
MSCI AC World Index (GBP)| - total -8.4%
return
Revenue return per share 0.8p 2.0p
Dividend - first interim 1.00p 0.45p
- second interim 0.45p 1.25p
- total 1.45p 1.70p
Hedge Fund Share Portfolio
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED
30 NOVEMBER 31 MAY 30 NOVEMBER
2011
2011 2011 TOTAL RETURN
Net asset value| - total return -6.7%
Share price| - total return -11.9%
Discount at period end 11.2% 6.6%
3 months LIBOR +5% pa - total 5.4%
return
Managed Liquidity Share Portfolio
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED
30 NOVEMBER 31 MAY 30 NOVEMBER
2011
2011 2011 TOTAL RETURN
Net asset value| - total return 0.0%
Share price| - total return -0.5%
Discount at period end 2.8% 2.3%
Revenue return per share 0.1p 0.5p
Dividend - first interim - 0.5p
.
INTERIM MANAGEMENT REPORT INCORPORATING THE CHAIRMAN'S STATEMENT
Investment Objective and Policy
The Company's investment objective is to provide shareholders with a choice of
investment strategies and policies, each intended to generate attractive
risk-adjusted returns.
The Company's share capital comprises four share classes: UK Equity Shares,
Global Equity Income (formerly Global Equity) Shares, Hedge Fund Shares and
Managed Liquidity Shares, each of which has its own separate portfolio of
assets and attributable liabilities. Shareholders approved proposed changes to
the Global Equity and Hedge Fund Portfolios at a General Meeting held on 15
November 2011 (the UK Equity and Managed Liquidity Portfolios were not
changed). Transition to the new Global Equity Income investment objective and
policy commenced immediately and they are now being followed. The Hedge Fund
Portfolio will be renamed the Balanced Risk Portfolio in February 2012. The new
investment objectives and policies of these Portfolios are set out in full in
the appendix to this report.
The Company enables shareholders to tailor their asset allocation to reflect
their view of prevailing market conditions. Shareholders now have the
opportunity to convert between share classes capital gains tax free every three
months.
Performance
The six month period to the end of November 2011 saw extremely unsettled
markets. The MSCI AC World Index total return over the period was -8.4% and
that of the FTSE All-Share Index was -7.4%. During the period it became clear
that, with the debt problems of the Eurozone and the risk of a sharp slowdown
in China due to weakness in investment and construction, the developed world
was flirting again with recession. As a result, high-quality government bonds
performed very well with yields falling to levels only previously associated
with depression. Equities, in contrast, reflected concerns that profits would
come under pressure in such an environment.
In NAV terms, the UK Equity Portfolio returned -3.2% over the period. Although
the return was negative the Portfolio performed significantly better than the
FTSE All-Share Index. This good relative performance was due to a cautious
concentration on very stable companies, particularly in tobacco and healthcare.
The Global Equity Portfolio returned -11.1% over the period, which was
disappointing. It suffered from an over-optimistic view of emerging market
growth and an underweight position in the US where there were signs of a slowly
improving economy. As mentioned above, shareholders approved changes to the
investment objective and strategy of this Portfolio on 15 November 2011 and the
transition to an income biased strategy was completed on 30 November 2011. As a
result, we anticipate that the future yield on these shares will be at least
3.5% based on current prices. The Portfolio has been renamed Global Equity
Income Portfolio to reflect this change.
In NAV terms, the Company's more secure Managed Liquidity Shares, whose
objective is derived from cash returns, maintained their value, recording no
change.
The Hedge Fund Shares, which also had an objective derived from cash returns,
disappointed again with a return of -6.7%. As stated above, shareholders have
approved a proposal to change the investment objective and strategy of this
Portfolio. The Paragon hedge fund assets are being redeemed and the new
Balanced Risk strategy will be implemented in February, with the Portfolio
renamed accordingly. The new strategy will utilise futures contracts to
generate returns from exposure to equities, bonds and commodities on a balanced
risk basis. It will also provide much better liquidity in the underlying assets
and a lower Total Expense Ratio.
The circular sent to shareholders in October described the target for the new
strategy in general terms. However, the Board will gauge performance of the
Portfolio against the same target that was set for the Hedge Fund strategy,
namely to achieve an absolute return of 3-month sterling LIBOR plus 5% per
annum over a rolling 5-year period. The Board is pleased to note that over the
six months to 30 November 2011 the Luxembourg based Invesco Balanced-Risk
Allocation Fund, which uses the same balanced risk strategy, returned +5.0% net
of fees (expressed in euros), and its performance has continued to be
satisfactory into the new year.
The discounts on the Company's Share classes all widened over the period, so
that share price performance suffered, particularly the UK Equity and Hedge
Fund Share classes. Since the period end, the discount on the UK Equity Share
class has narrowed.
Dividends
It remains the Directors' policy to distribute substantially all net revenues
earned between each conversion date for each share class.
On 18 November 2011 first interim dividends were paid as follows:
UK Equity Shares: 2.00p
Global Equity Shares: 1.00p
Second interim dividends, payable on 15 February 2012 to the shareholders on
the register on 27 January 2012, have also been declared, as follows:
UK Equity Shares: 0.85p
Global Equity Income Shares: 0.45p
In consequence of continuing very low interest rates, the net revenue of the
Managed Liquidity Portfolio has been minimal and in view of the administrative
costs, the Directors have decided not to declare any interim dividends on the
Managed Liquidity Shares. The net revenue earned will be taken into account in
considering future dividends.
Little or no net income is expected from the assets underlying the Hedge Fund
Shares and no dividends will be paid. It is expected that this will continue to
be the case when the Balanced Risk strategy is implemented.
Share Buy Backs
During the six months to 30 November 2011, the Company purchased and placed in
treasury 598,000 UK Equity Shares, 272,000 Global Equity Shares, 497,000 Hedge
Fund Shares and 366,000 Managed Liquidity Shares.
No shares have been repurchased since the period end. The Board intends to use
the Company's buy back authorities when this will benefit existing shareholders
as a whole and will ask shareholders to renew the authorities at the Company's
AGM each year and at other times should it be in shareholders' interest to do
so. The Board's policy is to maintain a very narrow discount in the Managed
Liquidity Share class. There is currently no formal discount policy in the
other Share classes.
At the AGM held on 15 November 2011, shareholders renewed the authority to make
market purchases of ordinary shares up to a maximum number of shares equating
to 14.99% of the total shares then in issue of each Share class. This authority
will be utilised when financial and stock market conditions allow and in the
best interests of the Company and of its shareholders as a whole.
Outlook
The Board is confident that with the changes made in November we now have Share
classes matching our aspiration to provide a range of attractive investment
solutions for existing and prospective shareholders and that all offer
advantages to holders in the current unsettled market conditions.
The outlook remains extremely uncertain. However, there is a much heightened
awareness of the risks and there is no doubt that for some time both companies
and financial institutions have been actively seeking to protect themselves.
Their actions are likely to have an adverse effect through weaker fixed
investment than might otherwise have been the case, but should also mean that
they are more resilient if the worse outcomes materialise. The problem for
government is how to harness excess capacity without increasing already high
debt levels.
At the asset class level, high quality government bonds appear to be
discounting a very severe setback and must be vulnerable to better economic
news and particularly a recovery in loan demand. Equities look cheap provided
they manage to avoid a complete mean reversion in profits as a share of
National Income. Any forecast in this area is extremely uncertain, though it
obviously depends significantly on overall economic activity. So far companies
have survived the weakness of the last three years surprisingly well. It would
be disappointing if they were to be routed now. We are somewhat protected
because both the Company's equity based Share classes depend on income greater
than that available from bond markets for a large part of their return and this
appears to be relatively stable.
Patrick Gifford
Chairman
23 January 2012
.
Related Party
Invesco Asset Management Limited (`IAML'), a wholly owned subsidiary of Invesco
Limited, acts as Manager and Company Secretary to the Company. Details of
IAML's services and fee arrangements are summarised in note 2 and are more
fully described in the 2011 annual financial report, a copy of which can be
found on the Manager's website at www.invescoperpetual.co.uk/investmenttrusts.
.
Principal Risks and Uncertainties
A detailed explanation of principal risks and uncertainties can be found on
pages 33 to 36 of the Company's 2011 annual financial report, which is
available on the Manager's website.
These are summarised as follows:
* Investment Policy - the investment policies may not achieve the published
investment objectives;
* Risks Applicable to the Company - the prices of shares in the Company may not
appreciate and the level of dividends may fluctuate;
* Compulsory Conversion of a Class of Shares - if ownership of a class of
shares becomes too concentrated the Directors may serve notice on holders of
the affected class requiring them to convert to another class;
* Liability of a Portfolio for the Liabilities of Another Portfolio - in the
event that any portfolio was unable to meet its liabilities, the shortfall
would become a liability of the other portfolios;
* Market Movements and Portfolio Performance - falls in stock markets will
affect the performance of the portfolio and individual investments;
* Gearing - borrowing will amplify the effect on shareholders' funds of
portfolio gains and losses;
* Hedging - where hedging is used there is a risk that the hedge will not be
effective;
* Regulatory and Tax Related - whilst compliance with rules and regulations is
closely monitored, breaches could affect returns to shareholders;
* Additional Risks Applicable to Managed Liquidity Shares - the Shares are not
designed to replicate a bank or building society deposit or money market fund;
* Additional Risks Applicable to Hedge Fund Shares - the Fauchier Managed Funds
may be exposed to additional gearing via their investments being themselves
geared, hedge funds may engage in short selling, which could expose the
investee hedge fund to the risk of uncapped losses until the position is
`closed-out', and may invest in derivative instruments that entail greater than
ordinary investment risks. Also, hedge funds may not permit frequent
redemptions, meaning that investments may be relatively illiquid; and
* Reliance on Third Party Service Providers - the Company has no employees,
other than the Board, so is reliant upon the performance of third party service
providers, particularly the Manager, for it to function.
In the view of the Board these principal risks and uncertainties are equally
applicable to the remaining six months of the financial year as they were to
the six months under review.
The Balanced Risk Shares will be subject to similar risks to the Hedge Fund
Shares save that there will be no exposure to short selling and the investments
are all expected to be liquid.
.
Going Concern
The financial statements have been prepared on a going concern basis. The
Directors consider this the appropriate basis as the Company has adequate
resources to continue in operational existence for the foreseeable future. In
reaching this conclusion, the Directors took into account the value of net
assets; the Company's Investment Policy; its risk management policies; the
diversified portfolio of readily realisable securities which can be used to
meet funding commitments; the credit facility and the overdraft which can be
used for both long-term and short-term funding requirements; the liquidity of
the investments which could be used to repay the overdraft in the event that
the facility could not be renewed or replaced; and the ability of the Company
in the light of these factors to meet all its liabilities and ongoing expenses.
.
DIRECTORS' RESPONSIBILITY STATEMENT
in respect of the preparation of the half-yearly financial report
The Directors are responsible for preparing the half-yearly financial report
using accounting policies consistent with applicable law and UK Accounting
Standards.
The Directors confirm that, to the best of their knowledge:
- the condensed set of financial statements contained within the half-yearly
financial report have been prepared in accordance with the Accounting Standards
Board's Statement "Half-Yearly Financial Report";
- the interim management report includes a fair review of the information
required by DTR 4.2.7R and DTR 4.2.8R of the FSA's Disclosure and Transparency
Rules; and
- the interim management report includes a fair review of the information
required on related party transactions.
The half-yearly financial report has not been audited or reviewed by the
Company's auditors.
Signed on behalf of the Board of Directors.
Patrick Gifford
Chairman
23 January 2012
.
SHARE CLASS CONVERSION DETAILS
Shares are convertible at the option of holders into any other class of Share
on or around 1 February, 1 May, 1 August and 1 November each year. Notice from
a shareholder to convert any class of Share on any conversion date will be
accepted up to ten business days prior to the relevant conversion date. Forms
for conversion are available on the Manager's web site:
www.invescoperpetual.co.uk/ipst and from the Company Secretary.
Conversion from one class of Shares into another will be on the basis of a
ratio derived from the prevailing underlying net asset value of each class of
relevant Share, calculated shortly before the date of conversion.
The Directors have been advised that conversion of one class of Share into
another will not be treated as a disposal for the purposes of UK Capital Gains
Tax.
.
UK EQUIITY SHARE PORTFOLIO
MANAGER'S REPORT
Investment Objective
The investment objective of the UK Equity Share Portfolio is to provide
shareholders with an attractive real long-term total return by investing
primarily in UK quoted equities.
Market and Economic Review
Global news, particularly the European sovereign debt and banking crisis,
dominated investor sentiment over the six months to the end of November 2011
and the performance of the stock market was notable for a high level of
volatility. The UK government's preferred measure of inflation, the Consumer
Prices Index (`CPI'), remained above its target of 2.0% while the Bank of
England continued to keep interest rates on hold at 0.5% and confirmed a
further GBP75 billion of quantitative easing.
The extreme volatility of the period saw November witnessing the stock market's
longest losing streak since 2003 and then rallying strongly at the end of the
month, as co-ordinated action from central banks, led by the US Fed, helped to
assuage fears of the Eurozone credit crisis escalating. The stock market paid
little attention to the Chancellor's autumn statement, which confirmed
forecasts of lower economic growth for the UK - down to 0.9% from 1.7% for this
year and to 0.7% from 2.5% next.
In contrast to the economic news, there was some positive corporate news flow,
with share buy backs a growing theme and certain businesses continuing to
deliver resilient operational performance.
Portfolio Strategy and Review
The net asset value total return of the Portfolio over the six months to the
end of November 2011 was -3.2%, compared to a negative total return of -7.4%
recorded by the FTSE All-Share Index.
In a difficult period for the stock market, amidst growing concerns over the
economic outlook, the performance of the Portfolio relative to the FTSE
All-Share Index benefited from its focus on taking advantage of the strength of
large quoted companies. Corporate news flow from these companies over the
period was typically positive, underlining the portfolio manager's confidence
in their ability to deliver through tough times.
The Portfolio's investments in the tobacco sector delivered a positive
contribution over the six months, with investors increasingly appreciating the
resilience of the sector's earnings and cash flow. The holdings in Reynolds
American and British American Tobacco performed particularly strongly, with the
former additionally benefiting from the strength of the US dollar.
The Portfolio is also heavily invested in the pharmaceutical sector and this
performed relatively well in the challenging market conditions. Other examples
of the health of the Portfolio's major investments came from Vodafone, whose
interim results included a comment on the continued strong momentum in emerging
markets such as India and Turkey, from Wm Morrison Supermarkets, which
confirmed that the strategy of margin recovery and geographic expansion
remained on track, and from Tate & Lyle, which noted strong demand in a number
of its markets.
Shares in Drax rose strongly on proposals from the Department of Energy &
Climate Change, particularly with regard to subsidies for renewable energy. The
Portfolio's new holding in Rolls Royce performed strongly after the company
revealed the disposal of its interest in International Aero Engines (`IAE') to
Pratt & Whitney for US$1.5 billion. A visit to Rolls Royce's civil aerospace
operations in Derby confirmed the portfolio manager's view that it is
justifiably recognised as an industry leading, world class engineering
business.
There was, however, disappointing news from the Portfolio's investment in
Homeserve, the shares of which fell sharply on news that, following an
independent review, it was to suspend part of its telesales operation pending a
re-training of its sales staff.
The investment in Chemring detracted from the Portfolio's performance over the
period. The company announced that unexpected delays in customer orders would
hit full year revenues and profits. Concerns over the outlook for defence
spending also hit the shares of BAE Systems.
The investment in Rentokil also performed disappointingly over the period,
detracting from performance. The company announced a decline in half yearly
pre-tax profit as trading deteriorated at its struggling parcels division, City
Link.
There were relatively few significant changes to the Portfolio's holdings
during the period. Exposure was reduced to Daily Mail & General Trust and Tate
& Lyle and the holding in Bunzl was sold. The proceeds were used to make a new
investment in Rolls Royce and to add to existing holdings in BAE Systems and
Brown (N).
Outlook
The recent news from the UK economy has provided strong evidence of the fragile
condition of the domestic economic situation. This was not a surprise to the
portfolio manager who expects this challenging environment to persist for
several years to come.
Investment strategy has focused on taking advantage of the strength of large
quoted companies; in sharp contrast to the household and government sectors,
corporates look to be in a position of strength, not just in the UK but
globally. Large companies, in particular, are mostly well managed and have
flexibility in their use of capital and labour. This has allowed them to
gradually reduce debt levels in recent years, to the extent that company
balance sheets in general are now in excellent shape. This is in stark contrast
to most sovereign balance sheets, which have been vastly expanded to provide
the large stimulus packages that have characterised the post-crisis world and
leave many sovereign credit ratings at risk of downgrades.
Many of the biggest holdings in the Portfolio have delivered solid levels of
earnings, cash flow and dividend growth over the last few years. This
operational progress has been achieved despite the financial crisis and the
deepest recession in post-war history. This gives the portfolio manager
confidence that these businesses can continue in similar vein in the future,
notwithstanding the continued probable weakness of developed world economies.
Despite this dependability and their proven ability to grow through the most
testing of economic circumstances, the valuations of the shares are low both in
absolute terms and relative to other asset classes. The portfolio manager
believes that equities are lower risk now than for many years given the scale
of the de-rating witnessed. As an equity investor he believes this represents
an extraordinary opportunity to invest in some of the biggest and best
companies in the market at very attractive valuations.
Mark Barnett
Portfolio Manager
Invesco Asset Management Limited
23 January 2012
.
UK EQUITY SHARE PORTFOLIO
LIST OF INVESTMENTS
AT 30 NOVEMBER 2011
Ordinary shares listed in the UK unless stated otherwise
MARKET
VALUE % OF
COMPANY INDUSTRY GROUP| GBP'000 PORTFOLIO
Imperial Tobacco Tobacco 2,570 5.6
Reynolds American - US Tobacco 2,565 5.6
Common Stock
British American Tobacco Tobacco 2,386 5.2
GlaxoSmithKline Pharmaceuticals and 2,250 4.9
Biotechnology
Vodafone Mobile Telecommunications 2,227 4.9
BT Fixed Line Telecommunications 2,084 4.6
BG Oil and Gas Producers 2,011 4.4
AstraZeneca Pharmaceuticals and 1,893 4.2
Biotechnology
Tesco Food and Drug Retailers 1,468 3.2
Babcock International Support Services 1,438 3.2
BAE Systems Aerospace and Defence 1,407 3.1
Reckitt Benckiser Household Goods and Home 1,332 2.9
Construction
Roche - Swiss common stock Pharmaceuticals and 1,250 2.8
Biotechnology
Capita Support Services 1,200 2.6
Centrica Gas, Water and Multiutilities 1,169 2.6
Hiscox Non-Life Insurance 1,137 2.5
Drax Electricity 1,104 2.4
Compass Travel and Leisure 1,079 2.4
Provident Financial Financial Services 984 2.2
Pennon Gas, Water and Multiutilities 978 2.1
International Power Electricity 893 2.0
KCOM Fixed Line Telecommunications 868 1.9
Amlin Non-Life Insurance 844 1.9
BTG Pharmaceuticals and 803 1.8
Biotechnology
Balfour Beatty Construction and Materials 798 1.8
Beazley Non-Life Insurance 765 1.7
Wm Morrison Supermarkets Food and Drug Retailers 716 1.6
SSE Electricity 671 1.5
Tate & Lyle Food Producers 633 1.4
A J Bell - Unquoted Financial Services 625 1.4
Serco Support Services 613 1.3
Ladbrokes Travel and Leisure 519 1.1
Rentokil Initial Support Services 512 1.1
Chemring Aerospace and Defence 509 1.1
Homeserve Support Services 509 1.1
TalkTalk Telecom Fixed Line Telecommunications 453 1.0
Daily Mail & General Trust Media 331 0.7
Brown (N) General Retailers 327 0.7
Impax Environmental Markets Investment Companies 313 0.7
Rolls Royce - Ordinary and Aerospace and Defence 265 0.6
C Shares
Vectura Pharmaceuticals and 218 0.5
Biotechnology
UK Coal Mining 166 0.4
Barclays Bank - Nuclear Electricity 149 0.3
Power Notes 28 February
2019(1)
XCounter(4) Healthcare Equipment and 148 0.3
Services
Landkom International(3) Food Producers 83 0.2
PuriCore Healthcare Equipment and 67 0.1
Services
HaloSource(2) Healthcare Equipment and 66 0.1
Services
Renovo Pharmaceuticals and 44 0.1
Biotechnology
Yell Media 44 0.1
Ecofin Water and Power Equity Investment Instruments 39 0.1
Opportunities - 6%
Convertible Loan Stock 2016
Helphire Financial Services 6 -
Total 45,529 100.0
|FTSE Industry Classification Benchmark.
(1) Contingent Value Rights (`CVRs') referred to as Nuclear Power Notes
(`NPNs') were offered by EDF as a partial cash alternative to its cash bid for
British Energy (`BE'). The NPNs were issued by Barclays Bank. The CVRs
participate in BE's existing business.
(2) Listed on AiM.
(3) Listed in Isle of Man.
(4) Listed in Sweden.
.
UK EQUITY SHARE PORTFOLIO
INCOME STATEMENT
YEAR
ENDED
SIX MONTHS ENDED SIX MONTHS ENDED 31 MAY
30 NOVEMBER 2011 30 NOVEMBER 2010 2011
REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL TOTAL
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
(Losses)/gains on - (1,801) (1,801) - 2,586 2,586 7,668
investments
Foreign exchange gains - 4 4 - - - 10
Income 989 - 989 851 - 851 2,206
Management fee - note 2 (44) (104) (148) (40) (93) (133) (267)
Performance fee - note 2 - (217) (217) - - - (111)
Other expenses (85) (1) (86) (79) - (79) (144)
Net return before finance 860 (2,119) (1,259) 732 2,493 3,225 9,362
costs and taxation
Finance costs (19) (45) (64) (19) (42) (61) (128)
Return on ordinary 841 (2,164) (1,323) 713 2,451 3,164 9,234
activities before tax
Tax on ordinary (11) - (11) (13) - (13) (31)
activities
Return on ordinary 830 (2,164) (1,334) 700 2,451 3,151 9,203
activities after tax for
the financial period
Basic return per ordinary 2.1p (5.5)p (3.4)p 1.8p 6.3p 8.1p 23.6p
share - note 4
SUMMARY OF NET ASSETS AT AT AT
30 NOVEMBER 30 NOVEMBER 31 MAY
2011 2010 2011
GBP'000 GBP'000 GBP'000
Fixed assets 45,529 43,346 49,734
Current assets 362 137 596
Creditors falling due within one year, (625) (519) (563)
excluding borrowings
Overdraft - (52) -
Bank loan (5,625) (6,900) (7,550)
Net assets 39,641 36,012 42,217
Net asset value per share - note 5 100.1p 92.4p 105.3p
Gearing:
Gross 14.2% 19.3% 17.9%
Net 14.0% 19.3% 17.8%
.
GLOBAL EQUITY INCOME SHARE PORTFOLIO
(FORMERLY GLOBAL EQUITY SHARE PORTFOLIO)
MANAGER'S REPORT
Investment Objective
The investment objective of the Global Equity Portfolio changed on 15 November
2011 to provide an attractive and growing level of income return and capital
appreciation over the long term, predominantly through investment in a
diversified portfolio of equities worldwide, and has been renamed Global Equity
Income. It should be noted that, although the portfolio at 30 November 2011
reflects the new strategy, the performance over the period described in this
Report derives from the former investment objective and policy as set out in
the 2011 annual financial report.
Market and Economic Review
The global economic backdrop deteriorated over the summer months although
macro-economic data has since surprised on the upside, particularly in the US.
Nonetheless the outlook remains one of slow and prolonged economic recovery, as
fiscal austerity and an extended period of deleveraging restrain growth.
Against this backdrop, and with increased Eurozone sovereign debt worries,
markets moved quickly, and often indiscriminately, to price in a sharp
deterioration and volatility is likely to remain high in the near term. Many
corporates, however, are in good health as they have restructured their cost
bases and rebuilt balance sheets following the financial crisis, and recent
market weakness has left a lot of quality companies trading at very attractive
valuations, discounting a more severe earnings outlook than we believe is
likely.
Portfolio Performance
The net asset value total return of the Portfolio over the 6 months to the end
of November 2011 was -11.1%, compared to a negative total return of -8.4%
recorded by the MSCI AC World Index.
Portfolio Strategy and Activity
Over the period the core of the portfolio comprised sustainable growth, cash
generative names in areas like pharmaceuticals and tobacco, and companies with
a strong aftermarket or services element supporting earnings stability, many of
which in industrial sectors. Being entirely stock driven, the portfolio also
had a number of turnaround and special situation investments that it was
thought the market was mis-pricing. Exposure to commodity cyclicals like
materials, and to consumer discretionary spend, was modest in the portfolio.
The Portfolio's high exposure to attractively valued sustainable growth names
in the UK made a positive contribution to returns, most notably within the
consumer staples and healthcare sectors. Much of the exposure to these areas
came through cash generative tobacco and pharmaceutical companies. Imperial
Tobacco did well, as did pharmaceutical holdings Roche, Glaxo and Novartis.
Vodafone was another strong performer.
Continental Europe was a weak market and the Portfolio's relatively high
exposure detracted from performance. Healthcare was important here as the high
level of Swiss pharmaceutical exposure mitigated, to an extent, the weakness
from some of our consumer and industrial cyclicals (Daimler, UPM, Safran) and
financials holdings.
The financials sector was under pressure and the Portfolio's European banks
exposure was a drag on performance. Consumer discretionary stocks were also
weak. Utilities finally proved defensive, but having no exposure in the
Portfolio this was a negative relative to the index. Low exposure to telecoms
also had a negative impact. Country-wise, Japan as a market proved defensive,
but the Portfolio's exposure, focussed on financials and autos, was not the
best place to be over the review period.
As mentioned above, shareholders passed a resolution to change the investment
policy and objective of the Global Equity Portfolio at a General Meeting of the
Company held on 15 November 2011. From that date, the Portfolio's investment
management transferred to Invesco Perpetual's Global Equity Income team of Paul
Boyne and Doug McGraw. The transition was completed by 30 November 2011, which
is reflected in the list of investments at that date. The reasoning behind this
change was a belief by the Directors, after consulting shareholders, that a
higher and growing level of investment income from this portfolio is, and is
likely to remain, a prized commodity if prevailing levels of interest rates
stay at present low levels for some time.
Outlook
The new portfolio managers' outlook is one of slow and prolonged economic
recovery, against a backdrop of sovereign debt concerns and fiscal austerity in
Europe, and worries that growth in China is slowing. The strategy being
followed to achieve the new investment objective is to look for companies with
attractive valuations that can sustain profit margins and deliver returns
through the economic cycle and which offer growing and sustainable dividends.
Companies are sought that are high quality, with attractive franchises and
balance sheets with a conservative level of debt. The portfolio managers
believe that these types of companies are more likely to be able to return cash
to investors in the form of growing dividends. Sustainability of margins and
dividends are key to this approach.
Bob Yerbury
Paul Boyne and Doug McGraw
Portfolio Managers
Invesco Asset Management Limited
23 January 2012
.
GLOBAL EQUITY INCOME SHARE PORTFOLIO
LIST OF INVESTMENTS
AT 30 NOVEMBER 2011
MARKET
VALUE % OF
COMPANY INDUSTRY GROUP| COUNTRY| GBP'000 PORTFOLIO
Roche Pharmaceuticals, Switzerland 1,177 3.6
Biotechnology and Life
Sciences
Reynolds American Food, Beverage and Tobacco US 1,154 3.5
Philip Morris Food, Beverage and Tobacco US 1,089 3.3
International
Tyco International Capital Goods US 1,082 3.3
Johnson & Johnson Pharmaceuticals, US 1,059 3.2
Biotechnology and Life
Sciences
Amcor Materials Australia 1,034 3.2
Novartis Pharmaceuticals, Switzerland 968 3.0
Biotechnology and Life
Sciences
British Sky Media UK 881 2.7
Broadcasting
Vodafone Telecommunication Services UK 862 2.6
Canon Technology Hardware and Japan 796 2.4
Equipment
SES Media France 788 2.4
Total Energy France 726 2.2
Zurich Financial Insurance Switzerland 691 2.2
Viacom Media US 686 2.1
Pearson Media UK 686 2.1
Time Warner Media US 679 2.1
HSBC Banks UK 675 2.1
Macy's Retailing US 669 2.0
Wolters Kluwer Media Netherlands 660 2.0
Bilfinger Berger Capital Goods Germany 657 2.0
Exxon Mobil Energy US 657 2.0
Chevron Energy US 656 2.0
Auto Data Software and Services US 649 2.0
Processing
Emerson Electric Capital Goods US 623 2.0
Baxter Healthcare Equipment and US 594 1.8
Services
CRH - ADR Materials Ireland 561 1.7
Raytheon Capital Goods US 526 1.6
Honda Automobiles and Components Japan 521 1.6
Kraft Foods Food, Beverage and Tobacco US 515 1.6
Pfizer Pharmaceuticals, US 510 1.6
Biotechnology and Life
Sciences
United Technologies Capital Goods US 509 1.6
ComfortDelGro Transportation Singapore 500 1.5
Time Warner Cable Media US 497 1.5
Hutchison Whampoa Capital Goods Hong Kong 487 1.5
Sysco Food and Staples Retailing US 484 1.5
Mitsubishi Estate Real Estate Japan 466 1.4
Accenture Software and Services US 449 1.4
Orkla ASA Capital Goods Norway 435 1.3
QBE Insurance Australia 432 1.3
BG Energy UK 425 1.3
Venture Technology Hardware and Singapore 425 1.3
Equipment
Covidien Healthcare Equipment and US 413 1.3
Services
Lawson Food and Staples Retailing Japan 367 1.1
Robert Half Commercial and Professional US 364 1.1
Services
United Parcel Transportation US 338 1.0
Service
Home Depot Retailing US 338 1.0
AT&T Telecommunication Services US 330 1.0
Procter & Gamble Household and Personal US 327 1.0
Products
Catlin Insurance UK 326 1.0
British American Food, Beverage and Tobacco UK 310 0.9
Tobacco
Kon KPN Telecommunication Services Netherlands 306 0.9
Jardine Matheson Capital Goods Hong Kong 305 0.9
Northern Trust Diversified Financials US 303 0.9
Telefonica Telecommunication Services Spain 249 0.8
HKR International Real Estate Hong Kong 205 0.6
Sky Deutschland Media Germany 131 0.4
Canon Marketing Retailing Japan 75 0.2
NEC Fielding Software and Services Japan 73 0.2
Alfresa Healthcare Equipment and Japan 72 0.2
Services
Total 32,772 100.0
|MSCI and Standard & Poor's Global Industry Classification Standard.
.
GLOBAL EQUITY INCOME SHARE PORTFOLIO
(FORMERLY GLOBAL EQUITY SHARE PORTFOLIO)
INCOME STATEMENT
YEAR
ENDED
SIX MONTHS ENDED SIX MONTHS ENDED 31 MAY
30 NOVEMBER 2011 30 NOVEMBER 2010 2011
REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL TOTAL
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
(Losses)/gains on - (4,462) (4,462) - 172 172 2,984
investments
Foreign exchange losses - (80) (80) - (14) (14) (42)
Income 387 - 387 364 - 364 944
Management fees - note 2 (38) (89) (127) (39) (92) (131) (279)
Other expenses (80) - (80) (76) (1) (77) (141)
Net return before finance 269 (4,631) (4,362) 249 65 314 3,466
costs and taxation
Finance costs (1) (2) (3) - - - -
Return on ordinary 268 (4,633) (4,365) 249 65 314 3,466
activities before tax
Tax on ordinary activities (29) - (29) (27) - (27) (74)
Return on ordinary 239 (4,633) (4,394) 222 65 287 3,392
activities after tax for
the financial period
Basic return per ordinary 0.8p (14.6)p (13.8)p 0.7p 0.2p 0.9p 10.5p
share - note 4
SUMMARY OF NET ASSETS
AT AT AT
30 NOVEMBER 30 NOVEMBER 31 MAY
2011 2010 2011
GBP'000 GBP'000 GBP'000
Fixed assets 32,772 36,319 38,170
Current assets 797 617 589
Creditors falling due within one year, (185) (115) (121)
excluding borrowings
Net assets 33,384 36,821 38,638
Net asset value per share - note 5 106.1p 112.4p 120.9p
Gearing:
Gross 0.0% 0.0% 0.0%
Net (1.7)% 1.3% (0.9)%
.
HEDGE FUND SHARE
INVESTMENT ADVISER'S REPORT
Investment Objective
The investment objective of the Hedge Fund Share Portfolio has been to achieve
an absolute return of 3-month sterling LIBOR plus 5% per annum over a rolling
five year period, coupled with low volatility. Capital preservation has been a
priority. The Portfolio investment objective and policy will change in February
2012 as explained in the Outlook section below. The new objective and policy
are set out in full in the appendix to this half-yearly financial report.
Portfolio
Since 1 June 2010 the principal hedge fund assets underlying the Portfolio have
been shares in Paragon Capital Appreciation Fund (`PCAF'). The Portfolio also
holds directly residual holdings of the predecessor funds of hedge funds. The
remainder of this report describes the activities of PCAF in the period under
review.
Performance
For the six months to 30 November 2011, PCAF produced a return of -5.6%, net of
fees. Since 30 November 2006, the PCAF and the predecessor Fauchier Allocator
Funds have achieved an average annual compound return of 2.5%. Over the same
period the annualised volatility of the same has been 9.4%, and the "beta" to
the FTSE All-Share Index (Total Return) some 0.34 and the Citigroup UK Gilt
Index (greater than 5 years) -0.25.
Market Review
Markets were again dominated by overarching macro-economic and political
concerns as the predicament of the Eurozone and its banking system lurched from
bad to worse. The long-anticipated rescue package for Greece announced at the
end of October produced a short-lived rally until cracks appeared in the
political will to see through reforms and the spotlight fell on Italy, Spain
and, significantly, France. Yields on 10-year Italian bonds hit a euro-era high
of 7.56% before Mr Berlusconi was forced to resign to be replaced by a
government of technocrats.
Hopes for the global economy outside of Europe were dampened as Chinese reports
indicated a contraction in manufacturing. In the US, Congress produced a
political impasse of its own, wrangling until the eleventh hour before raising
its debt ceiling and averting an almost inconceivable default, while the
precarious state of the US balance sheet was underlined when after two months
of negotiations, the cross party "super committee" failed to reach its minimum
target of agreeing $1.2 trillion in government savings.
In the final days of November, concerted intervention by central banks to ease
funding pressure on the beleaguered banking system resulted in a sharp
month-end rally after a period of intense concern about the very viability of
the euro's survival.
Global equity markets were extremely volatile with the VIX Volatility index
peaking around 43, a level not seen since 2008. After a rollercoaster ride, the
MSCI AC World (Total Return) Index ended down -8.4%.
Hedge Fund Strategies
Macro managers were down in aggregate as some struggled with the sharp
reversals in sentiment. The best performer had positions designed to profit
from the divergence of Eurozone sovereign credits and despite finding himself
wrong-footed by the initial rally in reaction to the Greek bailout package,
generated good gains overall. Trading equities proved a thankless task for
other managers, while our commodities specialist was down as gains from
precious metals positions were subsumed by losses in petrochemicals and soft
commodities.
The Fixed Income manager was up, making gains from euro interest rate
positions, short euro and trades profiting from the continuing bank stress.
There was a wide range of outcomes for the Equity Hedged managers. Inevitably
the performance of those with the highest overall net exposure was dragged down
by the drop in the broader indices, but in most cases hedges were able to
mitigate the worst of the markets' decline. On the positive side our Technology
specialist performed well as low net exposure and good stock selection helped
to generate an overall gain. Financials proved troublesome for a couple of
managers; for example one was positioned net short of Banks during November,
which, as the target of the central banks' concerted intervention, were among
the chief beneficiaries of the rally.
Unsurprisingly, the Short Bias managers performed well, demonstrating some most
welcome signs of alpha generation.
The Event Driven managers struggled with the market volatility. Special
situations equities detracted for one manager, while the longer bias of the
activist managers meant that they were more directly impacted by the volatility
and ended down slightly.
Credit markets were no less challenging and the Specialist Credit strategy was
down. The best performing funds were those managers with low net exposure and
defensive names. Special situation and distressed names were amongst the
hardest hit in the high-yield sell-off.
The Multiple Strategy managers were also down in aggregate. The best performer
made gains predominantly from direct commodity exposure, particularly in
precious metals and energy. Losses arose mainly from managers' equity and
credit books.
The PCAF Portfolio
During the last 6 months, there have been limited changes to the PCAF portfolio
composition. Allocation to Macro and Equity Long Bias has increased by one
manager per strategy.
As at 30 November 2011, PCAF had holdings in 34 hedge funds across 11 different
strategies. Approximately 67% of the assets invested were in Absolute Value
strategies with the balance in Relative Value strategies.
Fauchier Partners LLP
Investment Adviser
23 January 2012
.
Outlook
Shareholders approved proposed changes to the Hedge Fund Portfolio at a General
Meeting held on 15 November 2011. The Portfolio will be renamed Balanced Risk
Portfolio in February 2012 when its new investment objective and policies,
which are set out in the appendix to this half-yearly financial report, become
effective.
The new strategy, which will be managed by the Invesco Global Asset Allocation
investment team, based in Atlanta, USA, is aimed at delivering returns in
different economic environments with low volatility. The team seeks to achieve
this through investment in three asset classes, being equities, bonds and
commodities. The asset class weightings are determined using a proprietary
investment process, with assets being selected according to three key criteria:
a correlation matrix to ensure diversification, the ability to generate excess
returns and specific liquidity and transparency criteria. Exposure to the asset
classes is principally obtained through highly liquid and transparently priced
exchange-traded futures contracts, with cash and cash equivalents being held as
collateral.
It is hoped that this will provide shareholders with an attractive total return
in differing economic and inflationary environments, and with low correlation
to equity and bond market indices. The US based Premia Plus Fund, which
launched the strategy in 2008, has produced encouraging returns over a range of
economic and market conditions with an annualised total return from inception
to 30 November 2011 of 13.55% (before fees), compared with a traditional
balanced portfolio benchmark (60% MSCI World Index/40% Barclays Aggregate Bond
Index) over the same period of 5.02% (all expressed in US dollar terms).
Invesco Asset Management Ltd
23 January 2012
.
HEDGE FUND SHARE PORTFOLIO
LIST OF INVESTMENTS
AT 30 NOVEMBER 2011
Hedge Fund Investments
At 30 November 2011 the investments of the Hedge Fund Share Portfolio consisted
principally of two Certificates, the performance of each of which is linked to
the performance of Paragon Capital Appreciation Fund (`PCAF'). PCAF is an
open-ended investment company domiciled in Guernsey and listed on the Irish
Stock Exchange. Fauchier Partners act as investment manager to PCAF.
% OF
STRATEGY FUND NAME PORTFOLIO
Underlying investments of
PCAF
Macro COMAC Global Macro Fund 4.0
Fortress Macro Fund 3.2
Wexford Offshore Spectrum Fund 2.8
Fortress Commodities Offshore Fund 2.0
Drawbridge Global Macro Fund 0.1
Drawbridge Global Alpha Fund V -
12.1
Equity Long Bias Bay Resource Partners Offshore Fund 3.7
Equity Hedged High Dabroes Offshore Investment Fund 4.5
Volatility
Elm Ridge Value Partners Offshore Fund 3.9
Criterion Capital Partners 3.8
Brahman Partners II Offshore 3.4
Lansdowne Global Financials Fund 3.2
Lansdowne UK Equity Fund 3.0
21.8
Equity Hedged Low Volatility Alydar Fund 2.6
Walker Smith International Fund 2.4
Ascend Fund II FP 2.1
7.1
Short Bias Fauchier Partners Counterpoint Fund 3.3
Specialist Credit CFIP Overseas Fund 3.7
Knighthead Offshore Fund 3.4
Riva Ridge Overseas Fund 3.1
Claren Road Credit Fund 1.1
11.3
Event Driven Empyrean Capital Overseas Fund 3.7
RoundKeep Icho Global Fund 3.5
Trian Partners 3.5
Pershing Square International 3.0
Harbinger Capital Partners Offshore 1.9
Fund I
Perry Partners International 0.1
15.7
Volatility Trading Vicis Capital Fund (International) 0.8
Fixed Income Brevan Howard Fund 3.9
Multiple Strategy Sunbeam Opportunities Offshore 3.9
OZ Europe Overseas Fund II 2.8
Shepherd Select Asset 0.5
Highbridge Asia Opportunities Fund 0.1
7.3
Incubator Fauchier Partners Incubator Fund 2.3
Other Jubilee Special Situations Fund 3.0
Cash 5.9
Assets Held Directly Plainfield 2009 Liquidating 1.1
Harbinger Class PE Holdings 0.5
CCM SPV III 0.1
Indus Pacific Opportunities 0.1
Distribution
Harbinger Class L Holdings -
1.8
Total Fixed Assets 100.0
.
HEDGE FUND SHARE PORTFOLIO
INCOME STATEMENT
YEAR
ENDED
SIX MONTHS ENDED SIX MONTHS ENDED 31 MAY
30 NOVEMBER 2011 30 NOVEMBER 2010 2011
REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL TOTAL
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Losses on investments - (803) (803) - (44) (44) (17)
Net losses on foreign - (1) (1) - - - (20)
currency
Income - - - - - - -
Management fees - note 2 - (14) (14) - (18) (18) (34)
Other expenses (28) (25) (53) (41) (29) (70) (64)
Return on ordinary (28) (843) (871) (41) (91) (132) (135)
activities before finance
costs
Finance costs - (11) (11) - (8) (8) (15)
Return on ordinary (28) (854) (882) (41) (99) (140) (150)
activities before tax
Tax on ordinary - - - - - - -
activities
Return on ordinary (28) (854) (882) (41) (99) (140) (150)
activities after tax for
the financial period
Basic return per ordinary (0.3)p (8.0)p (8.3)p (0.3)p (0.7)p (1.0)p (1.2)p
share - note 4
SUMMARY OF NET ASSETS
AT AT AT
30 NOVEMBER 30 NOVEMBER 31 MAY
2011 2010 2011
GBP'000 GBP'000 GBP'000
Fixed assets 10,873 14,647 13,412
Current assets 210 1,005 40
Creditors falling due within one year, (26) (47) (38)
excluding borrowings
Overdraft - - (124)
Bank loan - (1,525) (950)
Net assets 11,057 14,080 12,340
Net asset value per share - note 5 104.2p 111.8p 112.1p
Gearing:
Gross 0.0% 10.8% 8.7%
Net (1.9)% 4.1% 8.7%
.
MANAGED LIQUIDITY SHARE PORTFOLIO
MANAGER'S REPORT
Market and Economic Review
UK interest rates have remained unchanged at 0.5% throughout the last six
months and the Monetary Policy Committee (`MPC') of the Bank of England has
extended quantitative easing to loosen monetary conditions in the face of
persistently weak economic growth in the UK and a deepening sovereign debt
crisis in the Eurozone. In May the nine-member committee was split 6:3 in
favour of maintaining the 0.5% rate, with the minority preferring rate rises.
One of these three, Andrew Sentance, retired after this meeting and the other
two, Spencer Dale and Martin Weale, changed their position during the summer as
indicators for UK growth weakened. In the August meeting the committee was
unanimous on holding rates steady. Believing that the downside risks to future
growth and inflation were growing, the committee then voted in October to
extend its programme of asset purchases (quantitative easing) from GBP200 billion
to GBP275 billion. Both of these policies retain unanimous support to date. As
headline inflation was 5% in October, this policy appears inconsistent with the
bank's medium term target of 2%. However, the committee remains confident that
disinflationary pressures in the economy together with the diminishing
influence of oil price increases and the VAT hike in January 2011 will lead to
lower inflation in the coming quarters. Slack in the economy is not being
eroded quickly as growth remains low. Quarterly growth was 0.1% in the second
quarter of 2011 and 0.5% in the third, leaving the annual rate at 0.5%.
Indications of consumption are also weak. The unemployment rate rose from 7.7%
in April to 8.3% in October and wage growth remains low at an annual rate of
2.3%. Consumer confidence has fallen over the period and is now considerably
below 2010 levels. Retail sales growth is weak, rising just 0.8% in volume
terms in the year to October.
The 2 year Gilt yield fell from 0.92% at the end of May to 0.46% at the end of
November. Ongoing concerns about bank exposure to the sovereign debt crisis
meant that sterling three-month interbank lending rates rose over the same
period from 0.83% to 1.04%. Corporate bond yields rose in a market environment
of risk aversion.
Portfolio Strategy and Review
The investment strategy is achieved by investing in the Invesco Perpetual Money
Fund and, to a lesser extent, in Short-Term Investments Company (Global Series)
plc, which invests in a diversified portfolio of high quality Sterling
denominated short-term money market instruments. The Invesco Perpetual Money
Fund (`Fund') has maintained holdings in floating-rate notes (`FRNs') where
yields are reset every three months to reflect changes in the London Interbank
Offered Rate (`LIBOR'), the rate at which the largest banks lend money to one
another. As UK interest rates are widely expected to remain near their current
low level for a considerable time, the Fund also holds a number of government,
quasi-government and corporate bonds. These have higher interest coupons than
those currently available on FRNs. In order to limit risk exposure, these bonds
are both short dated and of high quality.
Outlook
The portfolio manager shares the Bank of England's view that inflation will
moderate from here as poor earnings growth and limited credit availability
retard consumption. Therefore it is not expected that UK interest rates will
move significantly higher over the next year.
Stuart Edwards
Portfolio Manager
Invesco Asset Management Limited
23 January 2012
.
MANAGED LIQUIDITY SHARE PORTFOLIO
INVESTMENTS
AT AT AT
30 NOVEMBER 30 NOVEMBER 31 MAY
2011 2010 2011
MARKET MARKET MARKET
VALUE VALUE VALUE
FUND GBP'000 GBP'000 GBP'000
Invesco Perpetual Money Fund 8,285 9,998 8,277
Short-Term Investments Company (Global 95 415 340
Series)
8,380 10,413 8,617
.
MANAGED LIQUIDITY SHARE PORTFOLIO
INCOME STATEMENT
YEAR
ENDED
SIX MONTHS ENDED SIX MONTHS ENDED 31 MAY
30 NOVEMBER 2011 30 NOVEMBER 2010 2011
REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL TOTAL
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Losses on investments - (14) (14) - - - (3)
Income 28 - 28 39 - 39 81
Management fees - note 2 - - - (1) - (1) -
Other expenses (17) - (17) (21) - (21) (30)
Net return before finance 11 (14) (3) 17 - 17 48
costs and taxation
Tax on ordinary - - - - - - -
activities
Return on ordinary 11 (14) (3) 17 - 17 48
activities after tax for
the financial period
Basic return per ordinary 0.1p (0.1)p - 0.1p - 0.1p 0.5p
share - note 4
.
SUMMARY OF NET ASSETS
AT AT AT
30 NOVEMBER 30 NOVEMBER 31 MAY
2011 2010 2011
GBP'000 GBP'000 GBP'000
Fixed assets 8,380 10,413 8,617
Current assets 68 80 64
Creditors falling due within one year, (162) (329) (161)
excluding borrowings
Overdraft (99) - (3)
Net assets 8,187 10,164 8,517
Net asset value per share - note 5 102.4p 102.2p 102.3p
.
CONDENSED INCOME STATEMENT
YEAR
ENDED
SIX MONTHS ENDED SIX MONTHS ENDED 31 MAY
30 NOVEMBER 2011 30 NOVEMBER 2010 2011
REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL TOTAL
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
(Losses)/gains on - (7,080) (7,080) - 2,714 2,714 10,632
investments
Foreign exchange losses - (77) (77) - (14) (14) (52)
Income 1,404 - 1,404 1,254 - 1,254 3,231
Management fees - note 2 (82) (207) (289) (80) (203) (283) (580)
Performance fees - (217) (217) - - - (111)
Other expenses (210) (26) (236) (217) (30) (247) (379)
Net return before finance 1,112 (7,607) (6,495) 957 2,467 3,424 12,741
costs and taxation
Finance costs (20) (58) (78) (19) (50) (69) (143)
Return on ordinary 1,092 (7,665) (6,573) 938 2,417 3,355 12,598
activities before tax
Tax on ordinary activities (40) - (40) (40) - (40) (105)
Return on ordinary 1,052 (7,665) (6,613) 898 2,417 3,315 12,493
activities after tax for
the financial period
Basic return per ordinary
share - note 4
UK Equity Share Portfolio 2.1p (5.5)p (3.4)p 1.8p 6.3p 8.1p 23.6p
Global Equity Income 0.8p (14.6)p (13.8)p 0.7p 0.2p 0.9p 10.5p
Share Portfolio
Hedge Fund Share (0.3p) (8.0)p (8.3)p (0.3)p (0.7)p (1.0) (1.2)p
Portfolio p
Managed Liquidity Share 0.1p (0.1)p - 0.1p - 0.1p 0.5p
Portfolio
The total column of this statement represents the Company's profit and loss
account, prepared in accordance with UK Accounting Standards. The supplementary
revenue and capital columns are both prepared in accordance with the Statement
of Recommended Practice issued by the Association of Investment Companies. All
items in the above statement derive from continuing operations and the Company
has no other gains or losses, therefore no statement of recognised gains or
losses is presented. No operations were acquired or discontinued in the period.
CONDENSED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
CAPITAL
SHARE SHARE SPECIAL REDEMPTION CAPITAL REVENUE
CAPITAL PREMIUM RESERVE RESERVE RESERVE RESERVE TOTAL
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
SIX MONTHS ENDED
30 NOVEMBER 2011
At 31 May 2011 1,071 1,290 89,617 324 9,403 7 101,712
Share buy backs - - (1,723) - - - (1,723)
Net return on - - - - (7,665) 1,052 (6,613)
ordinary activities
Interim dividend for - - (48) - - (1,059) (1,107)
2012
At 30 November 2011 1,071 1,290 87,846 324 1,738 - 92,269
YEAR ENDED
31 MAY 2011
At 31 May 2010 1,071 1,290 96,896 323 (872) - 98,708
Cancellation of - - (1) 1 - - -
deferred shares
Shares bought back - - (7,278) - - - (7,278)
and held in treasury
Realised gains on - - - - 2,261 - 2,261
disposal of
investments
Movement in - - - - 8,371 - 8,371
investment holding
gains
Foreign exchange - - - - (52) - (52)
losses
Special dividend - - - - 328 - 328
taken to capital
Charged to capital:
- management fees - - - - (416) - (416)
- performance fees - - - - (111) - (111)
- other expenses - - - - (2) - (2)
- finance costs - - - - (104) - (104)
Revenue return on - - - - - 2,218 2,218
ordinary activities
per the income
statement
Dividends - - - - - (2,111) (2,211)
At 31 May 2011 1,071 1,290 89,617 324 9,403 7 101,712
SIX MONTHS ENDED
30 NOVEMBER 2010
At 31 May 2010 1,071 1,290 96,896 323 (872) - 98,708
Cancellation of (1) - - 1 - - -
deferred shares
Share buy backs - - (4,170) - - - (4,170)
Net return on - - - - 2,417 898 3,315
ordinary activities
Interim dividend for - - - - - (776) (776)
2011
At 30 November 2010 1,070 1,290 92,726 324 1,545 122 97,077
.
CONDENSED BALANCE SHEET
REGISTERED NUMBER 5916642
GLOBAL
UK EQUITY HEDGE MANAGED
EQUITY INCOME FUND LIQUIDITY TOTAL
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
AT 30 NOVEMBER 2011
Fixed assets
Investments held at fair value 45,529 32,772 10,873 8,380 97,554
through profit or loss
Current assets
Debtors 279 238 3 68 588
Cash and short-term deposits 83 559 207 - 849
362 797 210 68 1,437
Creditors: amounts falling due (6,250) (185) (26) (261) (6,722)
within one year
Net current (liabilities)/ (5,888) 612 184 (193) (5,285)
assets
Net assets 39,641 33,384 11,057 8,187 92,269
Shareholders' funds
Share capital 458 359 137 117 1,071
Share premium - - 1,290 - 1,290
Special reserve 40,263 30,840 9,086 7,657 87,846
Capital redemption reserve 73 78 19 154 324
Capital reserve (1,391) 1,987 909 233 1,738
Revenue reserve 238 120 (384) 26 -
Shareholders' funds 39,641 33,384 11,057 8,187 92,269
Net asset value per ordinary 100.1p 106.1p 104.2p 102.4p
share Basic - note 5
AT 31 MAY 2011
Fixed assets
Investments held at fair value 49,734 38,170 13,412 8,617 109,933
through profit or loss
Current assets
Debtors 560 225 40 64 889
Cash and short-term deposits 36 364 - - 400
596 589 40 64 1,289
Creditors: amounts falling due (8,113) (121) (1,112) (164) (9,510)
within one year
Net current (liabilities)/ (7,517) 468 (1,072) (100) (8,221)
assets
Net assets 42,217 38,638 12,340 8,517 101,712
Shareholders' funds
Share capital 457 362 136 116 1,071
Share premium - - 1,290 - 1,290
Special reserve 40,750 31,394 9,488 7,985 89,617
Capital redemption reserve 73 78 19 154 324
Capital reserve 773 6,620 1,763 247 9,403
Revenue reserve 164 184 (356) 15 7
Shareholders' funds 42,217 38,638 12,340 8,517 101,712
Net asset value per ordinary 105.3p 120.9p 112.1p 102.3p
share Basic - note 5
AT 30 NOVEMBER 2010
Fixed assets
Investments held at fair value 43,346 36,319 14,647 10,413 104,725
through profit or loss
Current assets
Debtors 137 140 61 72 410
Cash and short-term deposits - 477 944 8 1,429
137 617 1,005 80 1,839
Creditors: amounts falling due (7,471) (115) (1,572) (329) (9,487)
within one year
Net current (liabilities)/ (7,334) 502 (567) (249) (7,648)
assets
Net assets 36,012 36,821 14,080 10,164 97,077
Shareholders' funds
Share capital 441 360 144 125 1,070
Share premium - - 1,290 - 1,290
Special reserve 39,627 32,281 11,210 9,608 92,726
Capital redemption reserve 73 78 19 154 324
Capital reserve (4,394) 3,939 1,750 250 1,545
Revenue reserve 265 163 (333) 27 122
Shareholders' funds 36,012 36,821 14,080 10,164 97,077
Net asset value per ordinary 92.4p 112.4p 111.8p 102.2p
share Basic - note 5
.
CONDENSED CASH FLOW STATEMENT
SIX MONTHS SIX MONTHS YEAR
ENDED ENDED ENDED
30 NOVEMBER 30 NOVEMBER 31 MAY
2011 2010 2011
GBP'000 GBP'000 GBP'000
Total return before finance costs and tax (6,495) 3,424 12,741
Adjustment for losses/(gains) on investments 7,080 (2,714) (10,632)
Adjustment for exchange losses 77 14 52
Scrip dividends received as income (14) (6) (30)
Decrease/(increase) in debtors 160 175 (85)
Increase/(decrease) in creditors 194 (121) (94)
Tax on unfranked investment income - (7) -
Overseas tax (40) (40) (105)
Net cash inflow from operating activities 962 725 1,847
Servicing of finance (78) (69) (140)
Taxation 15 151 124
Net financial investment 5,362 3,252 5,771
Equity dividends paid (1,107) (776) (2,211)
Net cash inflow before management of liquid 5,154 3,283 5,391
resources and financing
Management of liquid resources - - -
Financing
Shares bought back (1,725) (4,989) (8,238)
Movement in bank borrowings (2,903) 2,077 2,227
Increase/(decrease) in cash 526 371 (620)
Reconciliation of net cash flow to movement
in net debt
Increase/(decrease) in cash 526 371 (620)
Exchange movements (77) (14) (52)
Cash movement from changes in debt 2,903 (2,077) (2,227)
Movement of debt in period 3,352 (1,720) (2,899)
Net debt at beginning of year (8,227) (5,328) (5,328)
Net debt at end of period (4,875) (7,048) (8,227)
Analysis of changes in net debt
31 MAY EXCHANGE CASH 30 NOVEMBER
2011 MOVEMENTS FLOW 2011
GBP'000 GBP'000 GBP'000 GBP'000
Cash 400 (77) 526 849
Overdrafts (127) - 28 (99)
Bank loan (8,500) - 2,875 (5,625)
Net debt (8,227) (77) 3,429 (4,875)
.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
1. Accounting Policy
The condensed financial statements have been prepared using the same accounting
policies as those adopted in the 2011 annual financial report, which are
consistent with applicable United Kingdom Accounting Standards and with the
Statement of Recommended Practice `Financial Statements of Investment Trust
Companies and Venture Capital Trusts' issued by the Association of Investment
Companies, in January 2009.
2. Management Fees
Basis of Management and Performance Fees
(a) for the six months to 30 November 2011
Invesco Asset Management Limited (`IAML'), is entitled to a basic fee (payable
quarterly) in respect of each Portfolio (0.75% per annum of net assets in the
case of the UK Equity and Global Equity Portfolios and 0.25% per annum of net
assets in the case of the Hedge Fund and Managed Liquidity Portfolios).
IAML is also entitled to receive performance fees in respect of the UK Equity
and Global Equity Portfolios of 12.5% of the performance of the net asset value
per relevant Share in excess of a hurdle of the relevant benchmark plus 1% per
annum. The amount of the performance fee payable in any one year is limited to
0.75% of the net assets of the relevant Portfolio. Any underperformance of the
benchmark, or performance above the cap, is carried forward to subsequent
periods.
After underperformance brought forward, the UK Equity Portfolio earned a
performance fee of GBP217,000 in the period (six months ended 30 November 2010:
none and in the year ended 31 May 2011: GBP111,000) which is charged wholly to
capital.
No performance fee was earned for the Global Equity Portfolio in the period
(six months ended 30 November 2010 and in the year ended 31 May 2011).
Fauchier Partners Management Limited (`Fauchier`) charges the Fauchier Managed
Funds an annual management fee of 1% of those funds' net asset values. In
addition, the managers of the underlying hedge funds in which Fauchier Managed
Funds invest will typically charge an annual management fee (generally 1 to
1.5% of assets) plus a performance fee (generally 20% of any outperformance,
subject to a high watermark).
Further details of the above fees are disclosed in the 2011 annual financial
report.
(b) for the six months to 31 May 2012
At the General Meeting held on 15 November 2011 shareholders approved changes
to the Global Equity and Hedge Fund Portfolios. The new Global Equity Income
investment objective and policy were effected by 30 November 2011; the
management and performance fee basis remained substantially unchanged. The
Hedge Fund Portfolio will be renamed the Balanced Risk Portfolio in February
2012, when its new investment objective and polices become effective. At this
time Fauchier will be replaced by IAML as manager. IAML will be entitled to a
basic fee (payable quarterly) of 0.75% per annum of net assets of the new
Balanced Risk Portfolio). No performance fee will be payable on this Portfolio.
At present, 100% of the management fees and finance costs applicable to the
Hedge Fund Portfolio are charged to capital. In accordance with the Board's
expected split of long-term returns, in the form of capital gains and income,
of the Portfolio following the adoption of the new investment strategy, the
Directors intend to charge 70% of the management fees and finance costs
applicable to the Balanced Risk Portfolio to capital and the balance to
revenue. This change will become effective in February 2012.
3. Tax expense represents the sums of tax currently payable and any deferred
tax, with any tax payable being based on the taxable profit for the period.
Investment trusts which have been approved under Section 1158 of the
Corporation Tax Act 2010 are not liable for taxation on capital gains.
4. Basic Return per Ordinary Share
Basic revenue, capital and total return per ordinary share is based on each of
the return on ordinary activities after taxation as shown by the income
statement for the applicable Share class and on the following number of shares
being the weighted number of shares in issue throughout the period for each
applicable Share class:
WEIGHTED AVERAGE NUMBER OF SHARES
SIX MONTHS SIX MONTHS YEAR
ENDED ENDED ENDED
30 NOVEMBER 30 NOVEMBER 31 MAY
2011 2010 2011
UK Equity 39,710,856 38,837,982 38,981,102
Global Equity Income 31,774,563 32,402,548 32,455,572
Hedge Fund 10,689,872 13,290,668 12,736,626
Managed Liquidity 8,215,987 11,585,057 10,514,144
5. Net Asset Values per Share
The net asset values per share were based on the following Shareholders' funds
and shares (excluding treasury shares) in issue at the period end:
AT AT AT
30 NOVEMBER 30 NOVEMBER 31 MAY
2011 2010 2011
PORTFOLIO SHAREHOLDERS' FUNDS GBP'000 GBP'000 GBP'000
UK Equity 39,641 36,012 42,217
Global Equity Income 33,384 36,821 38,638
Hedge Fund 11,057 14,080 12,340
Managed Liquidity 8,187 10,164 8,517
AT AT AT
30 NOVEMBER 30 NOVEMBER 31 MAY
PORTFOLIO SHARES IN ISSUE AT PERIOD END 2011 2010 2011
UK Equity 39,601,495 38,979,957 40,081,381
Global Equity Income 31,454,464 32,759,274 31,971,638
Hedge Fund 10,613,223 12,599,287 11,009,810
Managed Liquidity 7,995,000 9,946,029 8,324,385
6. Movements in Share Capital and Share Class Conversion
IN THE SIX MONTHS ENDED 30 NOVEMBER 2011
GLOBAL
UK EQUITY HEDGE MANAGED
EQUITY INCOME FUND LIQUIDITY
Ordinary 1p shares (number)
At 31 May 2011 40,081,381 31,971,638 11,009,810 8,324,385
Shares bought back into (598,000) (272,000) (497,000) (366,000)
treasury
October 2011 conversion 118,114 (245,174) 100,413 36,615
At 30 November 2011 39,601,495 31,454,464 10,613,223 7,995,000
Treasury shares 6,163,000 4,488,000 3,125,000 3,691,500
Total shares in issue 30 45,764,495 35,942,464 13,738,223 11,686,500
November 2011
Treasury Shares (number)
At 31 May 2011 5,565,000 4,216,000 2,628,000 3,325,500
Shares bought back into 598,000 272,000 497,000 366,000
treasury
At 30 November 2011 6,163,000 4,488,000 3,125,000 3,691,500
Average buy back price 94.8p 102.6p 101.4p 99.1p
As part of the conversion process 6,404 deferred shares of 1p each were
created. All deferred shares are cancelled before the year end and so no
deferred shares are in issue at the start or end of the year.
7. Share Prices
GLOBAL
UK EQUITY HEDGE MANAGED
PERIOD END EQUITY INCOME FUND LIQUIDITY
30 November 2010 89.5p 108.5p 103.3p 99.5p
31 May 2011 101.0p 114.5p 105.0p 100.0p
30 November 2011 86.5p 97.0p 92.5p 99.5p
8. Dividends on Ordinary Shares
The following interim dividends were paid on 18 November 2011:
NUMBER DIVIDEND TOTAL
PORTFOLIO OF SHARES RATE GBP'000
UK Equity 39,510,181 2.00p 790
Global Equity Income 31,699,638 1.00p 317
1,107
9. It is the intention of the Directors to conduct the affairs of the Company
so that it satisfies the conditions for approval as an investment trust company
set out in section 1158 of the Corporation Tax Act 2010.
10. The financial information contained in this half-yearly financial report,
which has not been reviewed or audited by the independent auditors, does not
constitute statutory accounts within the meaning of section 434 of the
Companies Act 2006. The financial information for the half years ended 30
November 2011 and 30 November 2010 have not been audited. The figures and
financial information for the year ended 31 May 2011 are extracted and abridged
from the latest published accounts and do not constitute the statutory accounts
for that year. Those accounts have been delivered to the Registrar of Companies
and include the Report of the Independent Auditors, which was unqualified and
did not include a statement under section 498 of the Companies Act 2006.
By order of the Board
Invesco Asset Management Limited
Company Secretary
23 January 2012
.
DIRECTORS, MANAGERS AND ADMINISTRATION
Directors
Patrick Gifford (Chairman of the Board and Nomination Committee)
Sir Michael Bunbury (Chairman of the Audit and Management Engagement
Committees)
Alan Clifton (Senior Independent Director)
David Rosier
All the Directors are, in the opinion of the Board, independent of the
management company and all Directors are members of the Audit, Management
Engagement and Nomination Committees.
Manager, Company Secretary and Registered Office
Invesco Asset Management Limited
30 Finsbury Square
London EC2A 1AG
020 7065 4000
Company Secretarial contact: Paul Griggs
Company Number
Registered in England and Wales No. 5916642
Registrars
Capita Registrars, The Registry, 34 Beckenham Road
Beckenham, Kent BR3 4TU
If you hold your shares directly rather than through an ISA or savings scheme,
and have any queries relating to your shareholding you should contact Capita
Registrars on: 0871 664 0300 between 8.30 am and 5.30 pm every working day.
Calls cost 10p per minute plus network extras. (From outside the UK: +44(0) 20
8639 3399.)
Shareholders holding shares directly can also access their holding details via
Capita Registrar's website www.capitaregistrars.com or
www.capitashareportal.com
Capita Registrars provide an on-line and telephone share dealing service to
existing shareholders who are not seeking advice on buying or selling. This
service is available at www.capitadeal.com or 0871 664 0364 (lines are open 8
am to 4.30 pm every working day). Calls cost 10p per minute plus network
extras. (From outside the UK: +44(0) 20 3367 2686)
Invesco Perpetual Investor Services
Invesco Perpetual has an Investor Services Team available to assist you from
8.30 am to 6 pm every working day. Please feel free to take advantage of their
expertise.
0800 085 8677
www.invescoperpetual.co.uk/investmenttrusts
The contents of websites referred to in this document, or accessible from links
within those websites are not incorporated into, nor do they form part of, this
document.
.
APPENDIX:
NEW INVESTMENT OBJECTIVES AND POLICIES
Global Equity Income Portfolio
The new Global Equity Income Portfolio investment objective and policy, which
were approved by shareholders on 15 November 2011, are as follows:
Investment Objective
The investment objective of the Global Equity Income Portfolio is to provide an
attractive and growing level of income return and capital appreciation over the
long term, predominantly through investment in a diversified portfolio of
equities worldwide.
Investment Policy
The Portfolio will be invested predominantly in a portfolio of listed, quoted
or traded equities worldwide, but may also hold other securities from time to
time including, inter alia, fixed interest securities, preference shares,
convertible securities and depositary receipts. Investment may also be made in
regulated or authorised collective investment schemes. The Portfolio will not
invest in companies which are not listed, quoted or traded at the time of
investment, although it may have exposure to such companies where, following
investment, the relevant securities cease to be listed, quoted or traded. The
Manager will at all times invest and manage the Portfolio's assets in a manner
that is consistent with spreading investment risk, but there will be no rigid
industry, sector, region or country restrictions.
The Portfolio may utilise derivative instruments including index-linked notes,
contracts for differences, covered options and other equity-related derivative
instruments for efficient portfolio management and investment purposes. Any use
of derivatives for investment purposes will be made on the basis of the same
principles of risk spreading and diversification that apply to the Portfolio's
direct investments, as described above.
It is expected that, typically, the Portfolio will hold between 55 and 100
securities.
The Directors believe that the use of borrowings (gearing) can enhance returns
to Global Equity Income shareholders, and the Global Equity Income Portfolio
may use borrowings in pursuing its investment objective.
The Company's foreign currency investments will not be hedged to sterling as a
matter of general policy. However, the Manager may employ currency hedging,
either back to sterling or between currencies (i.e. cross hedging of portfolio
investments).
The Board has prescribed the following limits (measured at the time of
investment) on the investment policy of the Global Equity Income Portfolio:
* no more than 20% of the gross assets of the Global Equity Income Portfolio
may be invested in fixed interest securities;
* no more than 10% of the gross assets of the Global Equity Income Portfolio
may be held in a single investment;
* no more than 10% of the gross assets of the Global Equity Income Portfolio
may be held in other listed investment companies; and
* borrowings may be used to raise equity exposure up to a maximum of 20% of the
net assets of the Global Equity Income Portfolio, when it is considered
appropriate to do so.
.
Balanced Risk Portfolio
The Hedge Fund Portfolio will be renamed the Balanced Risk Portfolio in
February 2012. Its investment objective and policy, as approved by shareholders
on 15 November 2011, will then be as follows:
Investment Objective
The investment objective of the Balanced Risk Portfolio is to provide
shareholders with an attractive total return in differing economic and
inflationary environments, and with low correlation to equity and bond market
indices by gaining exposure to three asset classes: debt securities, equities
and commodities.
Investment Policy
The Portfolio utilises two main strategies: the first seeks to balance the risk
contribution from each of three asset classes (equities, bonds and
commodities), with the aim of reducing the probability, magnitude and duration
of capital losses, and the second seeks to shift tactically the allocation
among the assets with the aim of improving expected returns.
The Portfolio is constructed so as to balance risk: by asset class (bonds,
equities and commodities) and by asset within each asset class. Neutral
weighting is achieved when each asset class contributes an equal proportion of
the total Portfolio risk and each asset contributes an equal proportion of the
total risk for its respective asset class. The Manager is permitted to actively
vary asset class weightings, subject to a maximum of 150% and a minimum of 50%
of each asset class' neutral weight. The Manager is also permitted to actively
vary individual asset weightings, subject to a maximum of 200% and a minimum of
0% of each asset's neutral weight, provided the asset class guidelines are not
violated.
The Portfolio will be mainly invested directly in highly liquid and
transparently priced exchange-traded futures contracts, with cash and cash
equivalents being held as collateral. However, the Portfolio may also be
invested in equities, equity-related securities and debt securities (including
floating rate notes). Financial derivative instruments (including but not
limited to futures and total return swaps) are used only to achieve additional
long exposure to the three asset classes. The Portfolio may also use financial
derivative instruments, including currency futures and forwards, for efficient
portfolio management, hedging and investment purposes. Financial derivative
instruments will not be used to create net short positions in any asset class.
The Portfolio will comprise between 12 and 20 investments and typically around
16 investments, the majority of which represent diversified equity or bond
indices.
It is expected that the Portfolio's investments will mainly be denominated in
sterling. Any non-sterling derivative investments may be hedged back into
sterling at the discretion of the Manager when it is economic to do so.
The Board has prescribed the following limits (measured at the time of
investment) on the investment policy of the Balanced Risk Portfolio:
* the aggregate notional amount of financial derivative instruments positions
may not exceed 250% of the net assets of the Balanced Risk Portfolio;
* no more than 10% of the gross assets of the Balanced Risk Portfolio may be
held in other listed investment companies; and
* borrowings may be used for short-term purposes up to a maximum of 5% of the
net assets of the Balanced Risk Portfolio, where it is considered appropriate.
END
Inv.Perp.Sel Hd (LSE:IVPH)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Inv.Perp.Sel Hd (LSE:IVPH)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024
