Invesco Perpetual ISAs and ICVCs

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1 Invesco Perpetual ISAs and ICVCs

2 Contents 04 Invesco Perpetual an investment house with a difference 07 Making an investment decision 08 A world of choice 10 Asian equities 11 Emerging market equities 12 European equities 13 Fixed interest and money markets 14 Global equities 15 Japanese equities 16 Multi asset 17 UK equities 18 US equities 20 Choosing a product 22 How to apply for a new ISA 23 How to apply for an ICVC 25 Investment risks 27 Important information

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4 Invesco Perpetual an investment house with a difference 04 Invesco Perpetual ISAs and ICVCs

5 As one of the UK s largest investment managers, 1 we manage assets on behalf of consumers, intermediaries and professional investors through a broad product range. Unlike most investment houses, we re not based in the City. We ve chosen to build our business in Henley-on-Thames, where our highly-respected fund management teams have the time and space to do what they do best. Invesco Perpetual forms part of Invesco Ltd. As one of the world s leading independent global investment managers, Invesco Ltd. has the reach and resources of a global organisation and the focus and attention of a boutique firm: the investment capabilities are both diverse and specialised; global in reach, yet local in presence. What we do Truly active fund management has always been at the heart of Invesco Perpetual s business. Portfolios are built through rigorous research, including analysis of current economic and market conditions, as well as the individual attributes of companies. We believe that fund management should be undertaken in an environment where the investment team can focus on longer-term performance and are given the opportunity to stand by their convictions. Having helped hundreds of thousands of investors over many years, our investment team is experienced at finding long-term opportunities, whatever the market conditions. Everything about Invesco Perpetual is geared towards the long-term. It s not our nature to make rash decisions. There s nothing wrong with making a fast buck, but we re confident that by carefully researching every investment we make, we can offer long-term returns. 1 Source: Investment Association as at 31 October Total retail and institutional funds under management including unit trusts, OEICs and ISAs. Why invest? Let s face it most of us would like to look forward to a secure financial future. The options available for building a nest egg vary considerably from the widely understood bank and building society accounts, through to investing in bonds and equities. We believe, with the right management, investments have the potential to offer significant long-term rewards. However, unlike money deposited in a bank or building society account, an investment involves stock market risk. So as the value of investments can rise and fall, it s important you understand that returns from such investments are not guaranteed you may not get back the money you originally invested. But for those who are willing to accept risk, investing for the long-term could be well worth considering. Invesco Perpetual ISAs and ICVCs 05

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7 Making an investment decision Before you dive into the sea of available products, it s worth considering a life jacket. Few people really have the time or inclination to understand the hundreds of financial products currently on the market and the best options to suit their particular needs to do so would be a full time job. The good news is that professional advice is available to help you choose the right investment products. For details of your nearest financial adviser, visit Invesco Perpetual ISAs and ICVCs 07

8 A world of choice 08 Invesco Perpetual ISAs and ICVCs

9 Designed to fit many investment needs, the Invesco Perpetual ICVC fund range offers you a host of diverse investment opportunities, available across the globe, through equity, fixed interest and multi asset funds. Income, capital growth or both? Over the years, we have built an enviable reputation for offering income-seeking bond and equity income expertise and offer a variety of income generating funds. We also offer considerable expertise and experience in the search for long-term capital growth, with a selection of funds designed with the potential to grow the capital of an investment. With an investment landscape of potential total returns at your fingertips, it s up to you are you looking for income, capital growth or both? Our specialised expertise Our investment teams comprise individual talented specialists, expert in their field, wholly focused on their area of specialisation. What s more, they re passionate about finding investment opportunities and long-term returns. To introduce you to the regions and asset classes accessible through Invesco Perpetual funds, our investment teams offer their distinctive insight into the world of investment over the following pages. Please remember that 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. Before making any investments You will need to declare that you have been provided with the most up to date and relevant fund and share class-specific Key Investor Information Document as well as the Supplementary Information Document. If you are unsure whether an ICVC is suitable you should seek advice from a financial adviser. Investment risks Each fund has a set of individual investment risks. The investment risks specific to each fund will be referenced throughout this section. For the full list of investment risks, please see page 25. Invesco Perpetual ISAs and ICVCs 09

10 Asian equities Asia s reputation for growth is well founded, and the region continues to be increasingly important to the global economy with financially sound governments and a thriving corporate sector that includes many of the world s largest and most profitable companies. Invesco Perpetual Asian equity funds Asian Fund 2, 3 Asian Equity Income Fund 2, 3 Hong Kong & China Fund Pacific Fund 2, 3 1, 2, 3, 4 Many Asian economies continue to move towards a structurally lower growth rate. Despite this, the economic growth for the Asian region remains relatively stable. Furthermore, we believe that the region s growth profile continues to compare favourably to that of developed markets, with strong structural trends such as urbanisation and rising incomes being key drivers that can unlock the vast potential of Asia s domestic consumption. This should help drive economic growth with some companies being better placed to harness this potential, improving their profitability levels and total shareholder returns in the years ahead. This should lend support to markets. In China, there appears to be growing acceptance of the gradual transition towards a slower, more sustainable economic growth environment. Meanwhile, employment levels have remained robust, largely thanks to the growing contribution of the tertiary, or services sector, which is key in rebalancing the economy away from capital investment towards domestic consumption. Finally, given the more challenging environment, those Asian countries that are able to implement genuine reforms are likely to do better. As such, we believe there are good long-term investment opportunities to be found in Asia for those who are selective. 1 Managed by the Invesco Asia Pacific investment team located in Hong Kong. Investment risks 2 Please see the emerging markets risk under investment risks on page Please see the derivatives risk under investment risks on page Please see the occasionally concentrated fund risk under investment risks on page 25. Stuart Parks Head of Asian Equities, Invesco Perpetual 10 Invesco Perpetual ISAs and ICVCs

11 Emerging market equities Emerging economies remain in relatively good shape, drawing support from a pick-up in world trade, benign inflation, and synchronised growth across the globe. Invesco Perpetual emerging market equity funds Global Emerging Markets Fund 1, 2 1, 2, 3, 4 Emerging European Fund Latin American Fund 1, 2 Dean Newman Head of Emerging Market Equities, Invesco Perpetual 2017 was the best year for emerging equity markets versus developed ones since Underpinned by improving fundamentals, we believe the outlook for the asset class is likely to remain positive. Companies are delivering on the earnings front and 2018 could be the first year since the financial crisis that the global economy will be operating at, or near, full capacity. The Chinese economy continues to make progress in rebalancing towards a more efficient and open place to do business in. We expect the authorities in China to press ahead with supply-side structural reform in 2018 aimed at promoting equality and the environment. Last year Beijing spent much time cracking down on financial risk such as the growth in so-called shadow lending. We expect the Government to accelerate efforts to rein in credit and control debt. Elsewhere in emerging Asia, economies are likely to remain resilient, drawing support from strong domestic consumption, an export recovery and solid growth in services. In Latin America we believe the economic recovery in the region is broadening, aided by an improving outlook for Brazil. Interest rates have recently been cut to historic lows in Brazil good news for businesses and consumers alike. Lower interest rates are also helping to reawaken consumer demand in Russia with higher oil prices bringing added benefits to the Russian economy. While emerging market economies are heading in the right direction, we are aware that some clouds could develop on the horizon over coming months. Interest rates have already been increased in the UK and US. While we expect a further scaling back of monetary stimulus in the developed world, including Europe and Japan, any policy mistakes by the central banks could undermine market confidence. Given these uncertainties, we believe it is important to have a stable and experienced team of investment professionals to build an appropriately diversified fund. With our active approach to stock picking, strong portfolio construction and rigorous research, we believe these strengths put us in a good position for Investment risks 1 Please see the emerging markets risk under investment risks on page Please see the derivatives risk under investment risks on page Please see the occasionally concentrated fund risk under investment risks on page Please see the investing in Russia risk under investment risks on page 25. Invesco Perpetual ISAs and ICVCs 11

12 European equities We believe a domestic demand-led recovery is far harder to stop in its tracks than one based on external factors, making this uptick more sustainable. Invesco Perpetual European equity funds European Equity Fund 2 European Equity Income Fund 2 European ex UK Enhanced Index Fund 1, 2 European Opportunities Fund 2 European Smaller Companies Fund 2, 3 Jeff Taylor Head of European Equities, Invesco Perpetual In recent years, there has been a notable dislocation between perception and reality in Europe. Perception by many investors has been that the region is subject to incomprehensible politics, a disappointing economy, and lack of corporate earnings growth. However, when taking a step back and looking at the reality today, the picture is different: the economic recovery is increasingly robust and beating expectations, corporate earnings growth is starting to come through and political risks are receding. A continuation of the economic recovery in Europe is our base case for this year, underpinned by strong domestic demand, an accommodative monetary policy, and some structural reforms, making us constructive on the outlook for European equities. We see a broad-based pick-up in consumption and, more recently, corporate investment. Banks are lending again and unemployment is falling. We believe a domestic demand-led recovery is far harder to stop in its tracks than one based on external factors, making this uptick more sustainable. On the earnings front, after years of disappointment, earnings growth is now back, with a very respectable pick up in 2017 and good signs for 2018 given the economic outlook suggested above. Early indications point to a further acceleration in capital expenditures in 2018 too, implying positive knock-on effects for the corporate ecosystem. On the political front, despite the numerous headlines, politics only really matters from an investment point of view when it poses a genuine threat to financial markets. In reality Europe has seen far more market-friendly political outcomes than many commentators have predicted in the recent past. Looking forward, we believe it is important to distinguish between the probable and the merely possible. Overall, we think it unlikely that the eurozone will be at the heart of market-disrupting geopolitical events this year. This should allow investors to refocus on fundamentals, which are improving on both the macroeconomic and corporate levels. 1 Managed by the Invesco Quantitative Strategies team located in Frankfurt. Please note that you can currently only invest in this fund via a qualified financial adviser or a third party fund platform. Investment risks 2 Please see the derivatives risk under investment risks on page Please see the smaller companies risk under investment risks on page Invesco Perpetual ISAs and ICVCs

13 Fixed interest and money markets The fixed interest market, also known as the bond market, is a broad grouping of investments that typically provide a fixed level of income over a fixed period. These characteristics mean that bond funds can help to diversify an investment portfolio. A wide range of different bond types are available with varying degrees of risk. Issuers of bonds include governments and companies in both developed and emerging markets. The money markets are comprised of short-term instruments and form a subset of the broader fixed interest investment universe. Invesco Perpetual fixed interest funds Corporate Bond Fund 4, 5 Distribution Fund 4, 5 European High Income Fund 4, 5 Global Bond Fund 4, 5 Global Emerging Markets 3, 4, 5, 6, 7 Bond Fund Global Distribution Fund 4, 5 Global Financial Capital Fund High Yield Fund 4, 5 Monthly Income Plus Fund 4, 5 4, 9, 10 Tactical Bond Fund Invesco Perpetual money funds 2, 11 Money Fund Paul Causer and Paul Read Co-Heads of Fixed Interest, Invesco Perpetual 4, 5, 8 Bonds provide both a relatively secure 1 form of income and the opportunity for capital growth. Traditionally government bonds have offered the greatest security as governments have rarely defaulted on their interest, or principal payments. Corporate bonds, issued by companies to raise money, are another very important part of the bond investment universe. As the payment of interest and principal for these bonds is tied to the performance of the company, corporate bonds are normally considered to be less secure than a government bond from the same country. To compensate the investor for this greater level of uncertainty, corporate bonds ordinarily pay a higher level of interest than their corresponding government bonds. This uncertainty of repayment is often referred to as a bond s credit risk. Credit rating agencies provide an assessment of this credit risk and assign a credit rating. There are two broad categories of rating: investment grade, which is considered the highest quality and high yield, which is more speculative, but pays a higher level of income to compensate for the higher level of credit risk. In general, bonds tend to perform better as interest rates move lower and the fixed interest offered by the bond becomes more attractive relative to current interest rates. Of course, the opposite is also true when interest rates rise. This relationship between bond prices and interest rates is often referred to as interest rate risk. Given the sustained very low level of interest rates and low returns on cash investments, the income on many fixed interest securities has been very sought after, driving bond yields to historically low levels. 1 The income from bonds is considered to be relatively secure, as unlike equity dividends, bond interest payments are a contractual obligation on the bond issuer. Any default can have significant implications on the bond issuer s ability to raise capital, and in the case of a company may, but not always, result in the liquidation of that company. Some types of bonds have the ability to suspend interest payments without causing default. Typically, these bonds will pay a higher level of income to compensate for this risk. 2 Money funds typically invest in cash, cash equivalents or near cash. Cash equivalents are short-term instruments which usually behave very similarly to cash, for example Treasury Bills, which are loans to the US government. 3 Please note that you can currently only invest in this fund via a qualified financial adviser or a third party fund platform. Investment risks 4 Please see the bond funds risk under investment risks on page Please see the fixed interest investment series funds - derivatives and counterparty risk under investment risks on page Please see the emerging markets risk under investment risks on page Please see the ongoing charge to capital risk under investment risks on page Please see the Global Financial Capital Fund specific risk under investment risks on page Please see the ability to alter asset allocation risk under investment risks on page Please see the fixed interest investment series funds - derivatives and counterparty risk - Tactical Bond Fund specific under investment risks on page Please see the derivatives risk under investment risks on page 25. Invesco Perpetual ISAs and ICVCs 13

14 Global equities In an increasingly global marketplace, world-class companies are less likely to be defined by a single country or region than in the past. The world s economies have developed ever-closer links in trade, research and development, investment and production. Invesco Perpetual global equity funds Global Balanced Index Fund 1, 4 Global Equity Fund 4 Global Equity Income Fund 4 Global ex UK Core Equity Index Fund 1, 4 Global ex UK Enhanced Index Fund 2, 4 Global Opportunities Fund 4, 5 Global Smaller Companies Fund 4, 6 Invesco Perpetual managed funds 3 Managed Growth Fund 4 Managed Income Fund 4 The pace and scope of these global links have accelerated in recent years and companies now face an increasingly competitive operating environment. A more recent theme has been a shift in the centre of gravity of global demand from the developed world to emerging markets. Of course, many investment themes are now global in nature and companies with an international focus and overseas earnings offer exposure to the widest possible set of investment opportunities. Investing on a global basis may provide investors with greater portfolio diversification. The wider the spread of investments is across various countries, sectors and stocks, the lower the potential correlation, which may help to reduce the level of overall investment risk. Global equity investing also enables a comparison of stock valuations across the market and the opportunity to exploit country and sector pricing anomalies. 1 Lump sum ICVC only. Minimum investment 250,000. Managed by the Invesco Global Quantitative Equity team located in Frankfurt. 2 Managed by the Invesco Quantitative Strategies team located in Frankfurt. Please note that you can currently only invest in this fund via a qualified financial adviser or a third party fund platform. 3 Invesco Perpetual managed funds invest in the shares of other qualifying collective investment schemes. Investment risks 4 Please see the derivatives risk under investment risks on page Please see the occasionally concentrated risk under investment risks on page Please see the smaller companies risk under investment risks on page 25. Nick Mustoe Chief Investment Officer and Chair of the Global Equity and Global Equity Income Groups, Invesco Perpetual 14 Invesco Perpetual ISAs and ICVCs

15 Japanese equities Japan is the world s third largest economy, home to many leading global manufacturers and consumer brands which we believe are well placed to benefit from any improvement in global growth. Japanese companies have generally robust balance sheets, and are becoming increasingly shareholder-friendly, with rising trends of share buybacks and dividend increases. Invesco Perpetual Japanese equity funds Japan Fund 2 1, 2, 3 Japanese Smaller Companies Fund The near-term outlook for the Japanese equity market has benefited from the recent weakening trend in the yen, with the potential for corporate earnings to improve. Furthermore, valuations are currently undemanding, relative to other developed markets, while a loose monetary policy and expansionary fiscal policy remain supportive of the domestic economy. However, medium-term concerns remain, such as how to improve growth and inflation expectations. These are intractable issues, and ones to which Japan is particularly sensitive. While a long-term and durable solution may be some distance away, for now a combination of a weaker currency and a rising oil price, together with central bank and government policies pulling in the same direction, mean that macroeconomic conditions are supportive at the current time. It also remains important to closely monitor the external environment, given Japan s sensitivity to global economic trends. Fortunately, there are signs of improvement in the global economy, but visibility is low. Finally, we are seeing an ongoing structural improvement in shareholder returns, with positive trends in share buybacks and dividends. There is little to suggest this cannot continue given generally healthy balance sheets and earnings that are still high in absolute terms relative to history. 1 Managed by Invesco Japan located in Tokyo. Investment risks 2 Please see the derivatives risk under investment risks on page Please see the smaller companies risk under investment risks on page 25. Paul Chesson Head of Japanese Equities, Invesco Perpetual Invesco Perpetual ISAs and ICVCs 15

16 Multi Asset In an ever-changing market place, diversification is key to long-term investment returns. By combining different asset types through a risk-based investment process, we believe it is possible to create portfolios that can adapt to different economic environments. Invesco Perpetual Multi Asset funds 1, 3, 4 Global Targeted Income Fund Global Targeted Returns Fund 3 Balanced Risk 8 Fund 2, 5 Balanced Risk 10 Fund 2, 5 David Millar Head of Multi Asset, Invesco Perpetual Asset class correlations change over time, and the past few years have been a stark reminder of how dynamic the investment landscape is. This holds important implications for what true diversification actually is and how investors are able to achieve it. The financial crisis has left behind a changed investment landscape. Global growth and inflation remain subdued and the outlook for both is still unclear. Policymakers have had to strike a difficult balance between balancing budgets and trying to promote growth through currency competitiveness. This has led to important divergences across the globe between and within both developed and emerging markets. In addition, over the past few years, central banks have played a key role in influencing the behaviour of various asset classes. Government bond markets have been supported by central bank demand and the resulting low interest rates and bond yields across the globe have created a broad search for yield across assets. Changing rhetoric surrounding global monetary policy is still an important factor for financial markets and certain assets are arguably crowded. However, timing the unwind in investor demand is difficult and could potentially be a multiyear process. In addition, political risk has become a more significant issue recently and will likely stoke further market volatility in the years ahead. In this challenging environment, we believe a research agenda which crosses asset types is necessary, alongside a robust risk management process. 1 Please note that you can currently only invest in this fund via a qualified financial adviser or a third party fund platform. 2 Managed by the Invesco Global Asset Allocation team located in Atlanta, Georgia. Investment risks 3 Please see the Global Targeted Returns and Global Targeted Income Fund risk under investment risks on page Please see the ongoing charge to capital risk under investment risks on page Please see the Balanced Risk 8 and 10 Funds risk under investment risks on page Invesco Perpetual ISAs and ICVCs

17 UK equities The City of London is central to the world s financial stage, and we consider its vibrant but tightly regulated stock exchange to be truly international; a well-stocked hunting ground for stock pickers such as ourselves, the UK equity market s rich diversity affords an abundant source of long-term valuation opportunities across the market. Invesco Perpetual UK equity funds High Income Fund 2 Income Fund 2 Income & Growth Fund 2 UK Focus Fund 2, 3 UK Enhanced Index Fund 1, 2 UK Growth Fund 2 UK Smaller Companies Equity Fund 2, 4 UK Strategic Income Fund 2 UK Companies Fund 2 The performance of the UK stock market continues to be dominated by the countervailing forces of better-thanexpected global economic growth and ongoing UK domestic political concerns. A sense of complacency may now exist over the global growth outlook. A combination of high valuations in certain sectors, shifting monetary policy and a volatile geopolitical environment may provide a catalyst which alters this bullish global outlook. By contrast, the market seems unwilling to look beyond the uncertainty of the Brexit negotiations when it comes to valuing sterling assets which, by historic standards, are now heavily discounted. Again, this seems unlikely to persist for long. Looking ahead, the UK Equities team will be proceeding cautiously, employing a well-tested investment process, based on fundamental company analysis and a prudent approach to valuation. The UK market continues to present the longterm investor with opportunities for profitable investment, in companies with the potential to deliver a sustainable flow of dividend income in the event of more volatile market conditions. 1 Managed by the Invesco Quantitative Strategies team located in Frankfurt. Please note that you can currently only invest in this fund via a qualified financial adviser or a third party fund platform. Investment risks 2 Please see the derivatives risk under investment risks on page Please see the concentrated fund risk under investment risks on page Please see the smaller companies risk under investment risks on page 25. Mark Barnett Head of UK Equities, Invesco Perpetual Invesco Perpetual ISAs and ICVCs 17

18 US equities The underlying US economy is robust, and growth appears to be accelerating. Our focus on identifying companies trading below our estimate of their intrinsic value and the market strength of recent years has made finding value more challenging. But we continue to find investment opportunities. Our focus remains both on high quality companies that can sustain their returns over time as well as on companies that are transforming themselves by improving returns and their balance sheets. Invesco Perpetual US equity funds US Equity Fund 2, 3 US Enhanced Index Fund 1, 2 The US is a world leader in many industries, including technology, financial services and defence, as well as being self-sufficient in almost every natural resource. Over the long term, US companies have consistently generated returns higher than companies from other regions. Their strong cashflow generation gives them a lot of flexibility to balance company growth and the return of capital to shareholders. From shale oil and gas to cloud computing, and from electric cars to artificial intelligence, the US is seeing structural changes across many industries. This throws up many opportunities and threats. We are confident that we can identify companies with high returns or improving returns at attractive valuations. Increasingly we are finding the best investment opportunities in areas unloved by the market. 1 Managed by the Invesco Quantitative Strategies team located in Frankfurt and Boston. Please note that you can currently only invest in this fund via a qualified financial adviser or a third party fund platform. Investment risks 2 Please see the derivatives risk under investment risks on page Please see the occasionally concentrated fund risk under investment risks on page 25. Simon Laing Head of US Equities, Invesco Perpetual 18 Invesco Perpetual ISAs and ICVCs

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20 Choosing a product 20 Invesco Perpetual ISAs and ICVCs

21 Your investment options with Invesco Perpetual ICVCs With quite a daunting name, an Investment Company with Variable Capital, or ICVC, might sound complicated, but it is actually quite easy to understand. Simply put, an ICVC is a collective investment scheme similar to a unit trust that allows you to pool your money with other investors. This pool of money can then be invested across a wide and diverse range of shares, bonds or other securities, depending on the objective of the fund. There is no limit to the amount you can invest into an ICVC. You can choose to invest directly into an ICVC, or via an ISA wrapper. Stocks and shares ISAs An Individual Savings Account, or ISA, is a tax-efficient wrapper that protects the investments within from capital gains tax, while minimising income tax. Two types of ISAs are available stocks and shares ISAs and cash ISAs. In the 2018/2019 tax year up to 20,000 can be invested in a stocks and shares ISA or a cash ISA, or in any combination between the two. Please note that Invesco Perpetual only offers a stocks and shares ISA. An additional permitted subscription allowance (APS allowance) is available to the surviving spouse of a deceased ISA investor, where the ISA investor died on, or after, 3 December The APS allowance allows the surviving spouse to make additional permitted subscriptions into an ISA up to the value of the deceased investor s ISA at the date of death or, if the date of death was on or after 6 April 2018, the value as at the date upon which the account is realised, whichever is higher. This applies unless prior to the closure of the account the surviving spouse has already made an APS payment or the APS allowance has already been transferred to another manager. In either of these particular scenarios, the surviving spouse is only entitled to the value of the deceased investor s ISA as at the date of death. Cash subscriptions must be invested within 3 years of the date of death or, if later, 180 days of the completion of the administration of the deceased ISA investor s estate. Where the death of the ISA investor occurred in the period 3 December 2014 to 5 April 2015, the 3 year period starts on 6 April Where additional permitted subscriptions are made in the form of stock, re-registration of the deceased ISA investors holdings must be made within 180 days of beneficial ownership passing to the surviving spouse or civil partner. Unlike cash subscriptions, only inherited ISA assets can be used to make an additional permitted subscription in the form of stock and this is on the condition they are made with the ISA manager who held the deceased investor s ISA. You can invest in most of the Invesco Perpetual ICVC fund range within an ISA (please see the share class-specific Key Investor Information Document for the funds you are investing in, and also the Supplementary Information Document and the ICVC ISA Terms & Conditions for more information). Monthly and lump sum payments You can choose to invest from as little as 20 a month into most Invesco Perpetual funds by setting up a Direct Debit (which will continue until you instruct us otherwise). You can also invest a minimum lump sum of 500 per fund and top up any time with a minimum of 100 per fund. 1 Would you like income to be paid out or reinvested? Many Invesco Perpetual funds offer a choice of accumulation and income shares. By selecting income shares of a fund, any available income will be paid out regularly to you. By selecting a fund s accumulation shares, any available income will be reinvested and the price of the accumulation shares will increase accordingly. 1 Please note is it not possible to make monthly payments when you are using an APS allowance to invest. In addition, the Invesco Perpetual Global Balanced Index and Global ex UK Core Equity Index funds are subject to a minimum investment of 250,000 and are, therefore, not available for monthly investment or for investment within an ISA. Invesco Perpetual ISAs and ICVCs 21

22 How to apply for a new ISA Before making a decision to invest with us you will need to declare that you have been provided with the most up to date and relevant fund and share class-specific Key Investor Information Document as well as the Supplementary Information Document and the ICVC ISA Terms & Conditions. And if you re unsure about anything, talk to a financial adviser about which of our products is best for you. By post Simply complete the relevant application form, making sure that: If you are investing a lump sum, you have included a cheque made payable to Invesco Fund Managers Limited Client a/c; If you are investing monthly, you have completed the Direct Debit section of the application form and have enclosed a cheque for the first monthly payment (which matches the bank account from which the regular payments will be taken). The cheque should be made payable to Invesco Fund Managers Limited Client a/c; You return the application form and relevant cheque to us using the prepaid envelope By phone 1 Call our ISA dealing line on between 8.30am and 6.00pm Monday to Friday. You will need to confirm: That you have been provided with the most up to date and relevant fund and share class-specific Key Investor Information Document, the Supplementary Information Document and the ICVC ISA Terms & Conditions; Your date of birth; Your permanent residential address; Your contact telephone numbers; Your National Insurance number (if you have one); Your existing account number (if applicable); Your debit card details; The name and address of your financial adviser (if applicable) 1 This service is not available when you are making additional permitted subscriptions. How to transfer an existing ISA to Invesco Perpetual Transferring an ISA from your existing ISA Manager to Invesco Perpetual couldn t be easier. You can transfer previous tax year ISAs and the current tax year ISA by completing the relevant Invesco Perpetual ISA transfer form. We ll do the rest for you. There are just a few points for consideration: Your current tax year ISA can only be transferred in full; You can transfer your ISA to an Invesco Perpetual stocks and shares ISA only; Previous tax year ISAs can be transferred in part, or in full How to transfer an Additional Permitted Subscription (APS) to Invesco Perpetual You can transfer an APS allowance from another ISA manager to Invesco Perpetual by completing the APS allowance transfer form. Please note that: Your APS allowance can only be transferred once and must be transferred in full. Once the transfer of the APS allowance is completed you can make additional permitted subscriptions in the form of cash by completing the relevant Invesco Perpetual additional permitted subscription application form. More information about transferring ISAs and APS allowances between ISA managers can be found in the ICVC ISA Terms & Conditions. 22 Invesco Perpetual ISAs and ICVCs

23 How to apply for an ICVC Before making a decision to invest with us you will need to declare that you have been provided with the most up to date and relevant fund and share class-specific Key Investor Information Document as well as the Supplementary Information Document. If you re unsure about anything, talk to a financial adviser about which of our ICVCs is best for you. By post Simply complete the relevant application form, ensuring that: If you are investing a lump sum, you have included a cheque made payable to Invesco Fund Managers Limited If you are investing monthly, you have completed the Direct Debit section of the application form and have enclosed a cheque for the first monthly payment (which matches the bank account from which the regular payments will be taken). The cheque should be payable to Invesco Fund Managers Limited You return the application form and relevant cheque to us using the prepaid envelope Invesco Perpetual ISAs and ICVCs 23

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25 Investment risks Bond funds 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. Emerging Markets risk The fund 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. Smaller Companies risk Smaller company funds are higher risk than funds that can invest in larger company sizes. Market conditions, such as a decrease in market liquidity, may mean that it is not easy to buy or sell securities. Concentrated fund risk As the fund has a concentrated number of holdings, investors should be prepared to accept higher risks. Occasionally concentrated fund risk Although the Fund does not actively pursue a concentrated portfolio, it may have a concentrated number of holdings on occasions. Accordingly, the Fund may carry a higher degree of risk than a Fund which invests in a broader range of companies or takes smaller positions in a relatively large number of holdings. Investing in Russia risk The fund will invest directly in Russia, which can involve significant risks to capital. Ability to alter asset allocation risk As the fund can rapidly change its holdings across the fixed income and debt spectrum and cash, this can increase its risk profile. Derivatives risk The fund may use derivatives (complex instruments) in an attempt to reduce the overall risk of its 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 fund. The Manager, however, will ensure that the use of derivatives within the fund does not materially alter the overall risk profile of the fund. Global Financial Capital Fund specific risk As this is a theme-based fund, which only invests in fixed interest and other debt securities and shares of banks and other financial institutions, investors should be prepared to accept a higher degree of risk than for a fund that is more widely diversified across different sectors. Balanced Risk 8 and 10 Funds specific risk The funds will make significant use of financial derivatives (complex instruments) which will result in the funds being leveraged and may 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. Global Targeted Returns and Global Targeted Income Fund specific risk The funds make significant use of financial derivatives (complex instruments) which will result in the funds being leveraged and may 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 counterparty risk should an entity with which the funds do business become insolvent resulting in financial loss. This counterparty risk is reduced by the Manager, through the use of collateral management. The securities that the funds 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. Fixed interest investment series funds derivatives and counterparty risk The fund has the ability to make use of financial derivatives (complex instruments) which may result in the fund being leveraged and can 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 counterparty risk should an entity with which the fund does business become insolvent resulting in financial loss. Fixed interest investment series funds derivatives and counterparty risk Tactical Bond Fund specific The fund has the ability to make significant use of financial derivatives (complex instruments) which may result in the fund being leveraged and can 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 counterparty risk should an entity with which the fund does business become insolvent resulting in financial loss. Ongoing charge to Capital As one of the key objectives of the fund is to provide income, the ongoing charge is taken from capital rather than income. This can erode capital and reduce the potential for capital growth. The funds will gain exposure to commodities which are generally considered to be high risk investments and may result in large fluctuations in the value of the funds. Fixed income securities to which the funds are exposed are open to credit risk which may result in issuers not always making interest and/or other payments nor is the solvency of the issuers guaranteed. Invesco Perpetual ISAs and ICVCs 25

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27 Important information All information is as at 31 December 2017 and sourced from Invesco Perpetual unless otherwise stated. Current tax levels and reliefs may change. Depending on individual circumstances, this may affect investment returns. Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. For the most up to date information on our funds, please refer to the relevant fund and share class-specific Key Investor Information Documents, the Supplementary Information Document and the ICVC ISA Terms & Conditions before you make your decision. You can also request from us a copy of the latest Prospectus and the latest Annual or Interim Reports for more information on our funds. If you are unsure if a product is suitable for you, you should seek advice from a financial adviser. For details of your nearest financial adviser, visit We will record telephone calls to our Dealing Line and other calls may be recorded.

28 Contact us Client Services Telephone Administration centre address Invesco Perpetual PO Box Chelmsford CM99 2DL Telephone calls may be recorded. Invesco Perpetual is a business name of Invesco Fund Managers Limited Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK Authorised and regulated by the Financial Conduct Authority EMEA2264/63619/PDF/210318