Invesco perpetual High Income fund

Regional commentary

For only the second time this year, the UK equity
market failed to record a positive monthly gain (the
other month being May), as reflected by the 0.3%
fall in the FTSE All-Share index. However, this
performance masked an eventful period for the UK
equity market. The index rose to a new five-year high
(16th November) after a report showed that October
US inflation fell for a second consecutive month, thus
diminishing the prospects for a hike in US interest
rates. In the second half of the month, the UK equity
market moved steadily lower on weak US data
releases. Unfortunately, the rally in the final days of
the month proved too little too late for the FTSE All-
Share to avoid finishing November in negative
territory. Positive data released on the housing
market confirmed the view that activity remained
buoyant despite increases in interest rates in 2006.
Meanwhile, personal bankruptcies rose to a record
high in the third quarter as higher borrowing costs
left more consumers unable to pay their debts.

Fund strategy

The fund is exposed to stocks which we believe can
generate decent returns, with good dividend yields
and strong dividend growth, despite the challenging
environment. Accordingly, the fund retains its
defensive structure, with substantial weightings in
what are regarded as defensive sectors. For instance,
companies in the Gas, Water & Multi-utilities and
Electricity sectors feature prominently in the fund.
Activity within the fund was kept to a minimum over
the period. We took some profits in games retailer
Game Group following a period of strong
performance and used the proceeds to fund
acquisitions elsewhere. For example, we added to
existing holdings in utility company National Grid and
mobile telecommunications company Vodafone.

Investment objective

The Invesco Perpetual High Income Fund aims to
achieve a high level of income, together with capital
growth. The fund intends to invest primarily in
companies listed in the UK, with the balance invested
internationally. 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 Full Prospectus.

ICVC Investment Series

The High Income Fund is a sub-fund of the Invesco
Perpetual UK Investment Series, which is a UK
authorised investment company with variable capital
(ICVC).

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Important Information

Invesco Perpetual is a business name of INVESCO Fund Managers Limited and INVESCO Asset Management Limited.
Authorised and regulated by the Financial Services Authority.
Perpetual Park, Perpetual Park Drive, Henley-Thames, Oxfordshire RG9 1HH, UK.
Members of the AMVESCAP Group.
Investor Services
Telephone 0800 085 8677
[email protected]
www.invescoperpetual.co.uk
Broker Services
Telephone 0800 028 2121
[email protected]
Contact information
Telephone calls may be recorded.
No new money can be subscribed to a PEP.
Invesco Perpetual’s PEP and ISA products are
managed by INVESCO Asset Management
Limited.
Please refer to the latest Full Prospectus,
Simplified Prospectus and PEP & ISA Key Features
and latest Annual or Interim Short Reports for
more information on our funds. This information
is available using the contact details shown
below.
Where Invesco Perpetual has expressed its own
views and opinions, these may change.
Current tax levels and reliefs may change.
Depending on individual circumstances, this may
affect investment returns.
As one of the key objectives of the fund is to
provide income, the annual charge is taken from
capital rather than income. This can erode capital
and reduce the potential for capital growth.
Past performance is not a guide to the future.
The value of investments and the income from
them can fluctuate (this may partly be the result
of exchange rate fluctuations) and investors may
not get back the full amount invested.
** Performance figures in this leaflet are on a
mid price, sterling basis, inclusive of net
reinvested income to 30th November 2006.
Graph figures are as at the end of the
relevant month unless otherwise stated.
Standardised past performance figures are
as at 30th September 2006. (Source: Lipper,
a REUTERS Company)
** All fund portfolio and estimated net annual
income figures within this leaflet are as at
30th November 2006 (source: Invesco
Perpetual).
Important

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