Fund Research

Invesco Perpetual Select Trust plc: UK Equity Share Portfolio

Last update 04 December 2018
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Invesco Perpetual is a client of Kepler Trust Intelligence. Material produced by Kepler Trust Intelligence should be considered a marketing communication, and is not independent research. Please see the important information at the bottom of the page.

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 quoted UK equities.

Group/Investment

Invesco Perp Select UK Equity

Ticker

IVPU

Management Company

Invesco Advisers, Inc

Manager Name

James Goldstone

Association of Investment Companies (AIC) Sector

UK All Companies

12 Mo Yield

3.8%

Dividend Distribution Frequency

Quarterly

Latest Market Capitalisation

£56,960,577

Latest Net Gearing (Cum Fair)

22%

Latest Ongoing Charge Ex Perf Fee 

0.81%

Turnover Ratio 

0.0%

Shares Outstanding

 34,732,059

Discount (Cum Fair)

-0.1%

Daily Closing Price

167p

IP Select UK Equity shares owns an actively managed portfolio of UK equities held for the long term, with the manager, James Goldstone, aiming to identify undervalued companies and take advantage of the under-pricing.

James has repositioned the UK equity portfolio since taking over in October 2016, and the focus is on companies exposed to the UK economy and consumer, which James thinks are currently undervalued. However, this exposure is balanced out by holdings with international earnings, although these positions are all held because of the manager’s conviction in them as businesses and the attractiveness of their valuations, rather than simply risk-management tools.

The trust has underperformed this year due to the exposure to domestic earnings, with the UK market being unloved thanks to the uncertainty around Brexit. However, negotiations over the UK’s exit from the EU are nearing a conclusion with the “divorce” scheduled for the first quarter of next year.

Gearing has remained at the upper end of the permitted range under James’ management. However, this debt is not structural but reflects the valuation opportunity the manager sees in the UK market.

The company tends to trade quite closely to NAV, supported by a strong buyback policy, and in fact traded on a premium prior to the June 2016 referendum.

The dividend yield is 4%, paid quarterly, and the board’s intention is to at least maintain the dividend in each year going forward. It has backed this up by using capital reserves to pay when necessary.

Important Information

Invesco Perpetual is client of Kepler Trust Intelligence. Material produced by Kepler Trust Intelligence should be considered a marketing communication, and is not independent research.

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Fund History: Invesco Perpetual Select Trust plc: UK Equity Share Portfolio

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