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Defaqto on Invesco Perpetual’s global financial capital fund

View of Defaqto insight analyst for funds Fraser Donaldson

Donaldson says: “Invesco Perpetual’s latest fund launch sees it focussing on the global financial sector. The fund will be managed by co-heads of fixed income Paul Causer and Paul Read, alongside chief investment officer Nick Mustoe.

“The fund will aim to provider total returns over the medium to long term by investing globally in bonds and equities of banks and other financial institutions, as well as cash and cash equivalents. Paul Causer and Paul Read will manage the fixed interest element of the portfolio with Nick Mustoe managing the equity content. It is anticipated that the fund with start with around 5 per cent equity but with the flexibility to increase to 40 per cent. Therefore, it will be heavily weighted to fixed-income at the outset.  The global mandate does allow them the flexibility to look across all geographical areas but initially the fund will focus on Europe and the UK. 

“The fund is available with either income or accumulation shares and with or without trail commission included. There will be two income distribution dates, June 30 and December 31. The fund will sit in the IMA Specialist sector but has no specific benchmark for measuring performance. It will use a composite benchmark of 70 per cent Bank of America Merrill Lynch ET10 (Euro Tier 1 bank debt)  and 30 per cent MSCI World Financial benchmark in order to track the funds global exposure.

This may seem like a strange time to launch a fund focusing on the global financials sector during a time when banks in particular are under pressure. However, the managers clearly feel that with the structural and regulatory changes that are being made, it will present them with significant opportunities in which they hope to exploit.

“These fund managers already have a strong pedigree and track record. They are responsible for managing a number of Invesco Perpetual’s flagship funds. Paul Causer and Paul Read are already managing the corporate bond fund, distribution fund, European high yield fund and are co-managers on the European high income fund and monthly income plus funds. Nick Mustoe is also responsible for the management of the managed growth and managed income funds.

“The new fund should be looked upon as somewhat high risk due to its concentration on one specific sector of the market compared with a more diversified fund. But investors can take comfort in the fact that the fund will be managed by some very experienced managers.

“The fund is worth considering in existing client portfolios where specific sector exposure is required to complement an already well diversified portfolio.”


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