Global equities help IP fund outshine peers

The £218.96m fund invests primarily in a portfolio of Invesco Perpetual funds, and is itself a sub-fund of the Invesco Perpetual Managed Investment Series.

The fund launched in 1997 and is currently offering year-to-date trailing returns of 12.97 per cent and 12-month yields of 3.23 per cent.

The product targets capital growth and a higher-than-average level of income. It is exposed to global equity markets and its managers favour corporate and high-yield bonds over government bonds.

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Morningstar data revealed it is placed 15th out of 125 funds in the Investment Management Association’s Mixed Investment 40-85 per cent share sector, with three-month returns some 13.12 percentage points higher than the peer group average of 20.03 per cent.

The portfolio has a 29.75 per cent exposure to the UK, followed by 21.64 per cent in the US and 14.17 per cent in the eurozone.

The largest holding is the £10.60bn Invesco Perpetual Income fund, which invests mainly in UK companies and is currently flying high with year-to-date trailing returns of 17.94 per cent.

The fund has a minimum initial investment of £500. It has a maximum initial charge of 5 per cent, a maximum AMC of 1.50 per cent and a total expense ratio of 1.90 per cent.

In contrast, Smith & Williamson’s Multi-Manager Endurance Balanced fund was placed 112 out of 125 funds, and delivered three-year returns of 19.61 per cent within the same peer group, less than 0.50 percentage points below the peer group average.

The £35.36m fund was launched in 2004 and is currently delivering year-do-date trailing returns of 6.99 per cent.

Its largest fund is the £5.64bn Artemis Income fund, followed by IP’s £264.65m UK Strategic Income fund, and aims to achieve total returns by combining long-term and capital growth, with the intention of generating some income.

The fund has a UK bias, with an asset allocation of 41.81 per cent, followed by the US at 19.47 per cent.

It has a minimum initial investment of £1000. The fund has a maximum AMC of 1.50 per cent, a maximum initial charge of 5 per cent, and a total expense ratio of 2.49 per cent.

Invesco Perpetual Managed Income fundSmith & Williamson Multi-Manager Endurance Balanced fund
Top 5 holdingsTop 5 holdings
• Invesco Perpetual Income fund: 17.53%• Artemis Income fund: 7.54%
• Invesco Perpetual Asian fund: 14.61%• Invesco Perpetual UK Strategic Income fund: 6.09%
• Invesco Perpetual Corporate Bond fund: 13.89%• Troy Trojan Income fund: 5.42%
• Invesco Perpetual Equity fund: 13.71%• Threadneedle American fund: 5.13%
• Invesco Perpetual UK Strategic Income fund: 6.77% • UBS US Equity fund: 4.59%


Gavin Haynes, managing director for Bristol-based White -church Securities, said: “The Smith & Williamson fund has provided a good return of more than 100 per cent for investors since launch in 2004. It gives access to a range of well-known retail funds, while diversifiying into more specialist areas, such as listed hedge funds. Its equity weighting will be near the top end of the sector parameters, so is suitable for clients with an above-average risk tolerance. The Invesco fund has proven to be a solid offering, which is unsurprising given the team has a good choice of offerings in both the equity and bond universe. The equity-focused portfolio includes a good slug of Neil Woodford – 18 per cent – complemented by a range of global equities and its own strong corporate bond fund.”