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Invesco Perpetual Income Inclusive - Income (GBP)

Sell: 1,585.09pBuy: 1,585.09p3.50p (0.22%)

Prices as at 15 April 2014

* Please note that there can be occasions when the Selling price shown may be temporarily higher than the Buying price. This can sometimes happen when the stock market is closed but it can also happen at other times for a variety of reasons. However, when the stock market is open and you place a trade, the selling price available to you will never be higher than the buying price. Live prices will be available when you place a deal with us during market hours. Please check these and contact us if you are unable to deal online.

Our view on this Fund

This fund does not feature on our Wealth 150 list of what we believe are the best funds in each sector. If a fund is not within our Wealth 150 this is not necessarily a recommendation to sell. However, if you are thinking of adding to your investments we believe Wealth 150 funds are superior alternatives. View funds on the Wealth 150 »

Mark Barnett took over management of the Invesco Perpetual Income Fund from Neil Woodford in March 2014. Mark Barnett worked with Neil Woodford for 17 years, and has a similar investment approach, combining an analysis of the wider economy with stock selection. He has built a good track record in his own right managing the Invesco Perpetual UK Strategic Income Fund and the Perpetual Income & Growth Investment Trust.

We would like to see how he adapts to his new responsibilities and demands on his time before considering the fund for re-inclusion to the Wealth 150. We do not expect major changes to the fund in the short term and, therefore, we do not believe investors need to take any further action at this time.

Our view on the sector

Equity income investing has long been popular with our clients and we have been highlighting our favourite funds to investors for over 30 years. Funds in this sector tend to focus on generating an attractive income for investors along with some capital growth over the long term. The level of income will vary from fund to fund. Some managers aim to produce a consistently high level of income with less scope for growth, while others will look to grow dividends over the long term. While some investors will choose to have the income from their investments paid to their bank account, equity income funds can also be considered by those looking to grow their wealth. This can be achieved by reinvesting the income or by purchasing 'accumulation units' where any income is rolled up into the price of the units on your behalf, rather than being paid out. Over the long term both these options can make a significant difference to the value of your investment. We therefore believe carefully chosen equity income funds can form the cornerstone of virtually any portfolio and all our favourites feature on the Wealth 150.

Performance Analysis

Mark Barnett has produced significant returns ahead of the UK market and the peer group throughout his career. Over the long term he has demonstrated an excellent stock picking ability and our analysis shows he has also successfully added value through his sector allocation. The manager's typically defensive style may cause the fund to lag a rapidly rising market. However, he has successfully shielded investors in some difficult market conditions, such as the 2008 financial crisis.

Investment Philosophy

Mark Barnett seeks to buy companies he believes are undervalued with a long-term view, rather than investing for short-term gain. He aims to benefit from long-term growth in company cash flows, and from there, the associated dividend growth.

Process and Portfolio Construction

The manager focuses on his wider economic views, including where he believes the domestic and international economy is headed and how this will impact companies, before moving on to sectors and individual stock selection. Mark Barnett searches for companies he believes are undervalued, preferably those with good earnings growth and who are highly cash generative. He will spend time meeting and accumulating knowledge of company management teams, believing management input is significant.

After taking over management of this fund, the manager aims to reduce the number of holdings from around 120 to 80. He also intends to reduce some of the significant exposure to individual sectors and stocks, where the maximum weighting in any one stock will be reduced to 6%. He will not seek to add new holdings in smaller, unlisted companies although he may add to his existing positions. He will also seek to increase the number and weights of medium-sized companies held in the fund.

The manager has the flexibility to invest in companies of all sizes across the UK. The fund currently makes use of its flexibility to invest up to 20% of the fund in overseas equities.

Both the managers' Invesco Perpetual Income and High Income Funds are run using the same process with the key difference being the income distribution dates for the two funds.

Manager Track Record Based on HL Quantitative Research question mark

This information is currently unavailable.

Fund Track Record

15/04/09 to 15/04/10 15/04/10 to 15/04/11 15/04/11 to 15/04/12 15/04/12 to 15/04/13 15/04/13 to 15/04/14
Annual return 31.66% 8.55% 8.25% 20.36% 10.17%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Managers Track Record

The graph highlights the Fund Manager's career track record incorporating previous funds they have been responsible for. Each fund is shown as a different colour. In addition we have selected the most appropriate benchmark for comparison. This may incorporate different indices, which again are highlighted in different colour. Performance is shown on a bid to bid basis with net income reinvested. Source: Hargreaves Lansdown, Lipper for Investment Management, Datastream.

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Fund Management Group Comment

Invesco Perpetual was formed by the merger of Invesco and Perpetual in December 2000 following the acquisition of the two companies by Amvescap (now Invesco Ltd). It is one of the largest investment managers in the UK and offers a diverse range of funds across a number of sectors. The group trades as Invesco Ltd outside the UK and is listed on the New York Stock Exchange.

Invesco Perpetual believes there are no short cuts to long-term investment success and has gained a particularly strong reputation for managing UK equities and fixed interest.

Information about the fund

Fund manager biography

manager photo
Manager Name: Mark Barnett
Manager start date: 6 March 2014 Manager located in: Henley

Mark joined the company in 1996 as a fund manager in the UK Equities team. Mark began his investment career in 1992 with Mercury Asset Management before joining Invesco Perpetual. He holds a BA, French & Politics from the University of Reading.

Benchmark data provided subject to this disclaimer.

You can buy or sell holdings in this fund through an ISA, SIPP or Fund & Share Account

Wealth 150 fund

The Wealth 150 is a list of what we believe to be the best funds in each sector. For a fund to be selected for the Wealth 150 it must pass a rigorous selection process, and we continually monitor the list to ensure it only contains the best funds.

Wealth 150+ fund

The Wealth 150 is a list of what we believe to be the best funds in each sector. For a fund to be selected for the Wealth 150 it must pass a rigorous selection process, and we continually monitor the list to ensure it only contains the best funds.

As investment returns depend on two factors - performance and charges - we have identified from the Wealth 150, the funds we believe offer the very best combination of outstanding performance potential and the best prices. These are the Wealth150+ funds. In many cases these super-low charges are only available through the Vantage Service - a unique benefit to Hargreaves Lansdown clients.

Core Tracker fund

The Core Trackers list represents what we believe are the very best trackers in each of the main sectors. We analysed each fund's management, process and performance to find the best combination of quality and cost. We want to ensure that the fund has not only tracked its index closely in the past, but that it has the best potential to track well in the future. In many cases these super-low charges are only available through the Vantage Service - a unique benefit to Hargreaves Lansdown clients.

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