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Invesco Perpetual Investment risks

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.

The Invesco European Equity, European Equity Income, Asian, Global Opportunities, High Income, Income, UK Enhanced Index funds (UK) may use derivatives (complex instruments) in an attempt to reduce the overall risk of their investments, reduce the costs of investing and/or generate additional capital or income, although this may not be achieved. The use of such complex instruments may result in greater fluctuations of the value of the funds. The Managers, however, will ensure that the use of derivatives within the funds does not materially alter the overall risk profile of the funds.

The Invesco Global Targeted Returns Fund (UK) makes significant use of financial derivatives (complex instruments) which will result in the fund being leveraged and may result in large fluctuations in the value of the fund. Leverage on certain types of transactions including derivatives may impair the fund’s liquidity, cause it to liquidate positions at unfavourable times or otherwise cause the fund not to achieve its intended objective. Leverage occurs when the economic exposure created by the use of derivatives is greater than the amount invested resulting in the fund being exposed to a greater loss than the initial investment.

The fund may be exposed to counter party risk should an entity with which the fund does business become insolvent resulting in financial loss. This counter party risk is reduced by the Manager, through the use of collateral management.

The securities that the fund invests in may not always make interest and other payments nor is the solvency of the issuers guaranteed.  Market conditions, such as a decrease in market liquidity for the securities in which the Fund invests, may mean that the Fund may not be able to sell those securities at their true value.  These risks increase where the Fund invests in high yield or lower credit quality bonds and where we use derivatives.

The Invesco Asian Fund (UK) invests in emerging and developing markets, where there is potential for a decrease in market liquidity, which may mean that it is not easy to buy or sell securities. There may also be difficulties in dealing and settlement, and custody problems could arise.

The securities that the Invesco Corporate Bond and Monthly Income Plus funds (UK) invest in may not always make interest and other payments nor is the solvency of the issuers guaranteed. Market conditions, such as a decrease in market liquidity for the securities in which the funds invest, may mean that the funds may not be able to sell those securities at their true value.

These risks increase where the funds invest in high yield or lower credit quality bonds and where we use derivatives.

The Invesco Corporate Bond and Monthly Income Plus funds (UK) have the ability to make use of financial derivatives (complex instruments) which may result in the funds being leveraged and can result in large fluctuations in the value of the funds. Leverage on certain types of transactions including derivatives may impair the funds’ liquidity, cause them to liquidate positions at unfavourable times or otherwise cause the funds not to achieve their intended objective. Leverage occurs when the economic exposure created by the use of derivatives is greater than the amount invested resulting in the funds being exposed to a greater loss than the initial investment.

The funds may be exposed to counter party risk should an entity with which the funds do business become insolvent resulting in financial loss.

The funds may invest in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events.

Changes in interest rates will result in fluctuations in the value of the Invesco Corporate Bond, Monthly Income Plus and Global Targeted Returns funds (UK).

 

 

Issued by Invesco Asset Management Limited

Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK

Authorised and regulated by the Financial Conduct Authority

www.invesco.co.uk