Invesco Perpetual UK Equities Small Cap investing Webcall July - - PowerPoint PPT Presentation

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Invesco Perpetual UK Equities Small Cap investing Webcall July - - PowerPoint PPT Presentation

Sep 14, 2022 135 likes •256 views

Invesco Perpetual UK Equities Small Cap investing Webcall July 2017 Jonathan Brown, Fund Manager This presentation is for Professional Clients only and is not for consumer use. Robin West, Fund Manager 10824/LI/IPUKSCIT Jan17 Excellent

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SLIDE 1

10824/LI/IPUKSCIT – Jan17

Invesco Perpetual UK Equities Small Cap investing

Webcall July 2017 Jonathan Brown, Fund Manager

This presentation is for Professional Clients only and is not for consumer use.

Robin West, Fund Manager

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SLIDE 2

10824/LI/IPUKSCIT – Jan17

Excellent long-run performance from the Numis indices

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Source: Numis as at 31 December 2016.

970 14,121 6,069 1 10 100 1000 10000 100000 NSC 1000 NSCI FTSE All-Share Total returns cumulative value (log scale)

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SLIDE 3

10824/LI/IPUKSCIT – Jan17

Invesco Perpetual UK Smaller Companies Equity Fund Net performance (%)

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Source: Lipper as at 31 March 2017. Fund performance figures are based on the Z (accumulation) share class. As this was launched on 12 November 2012, for the periods prior to this launch date, performance figures are based on the accumulation share class, without any adjustment for fees. Performance figures for all share classes can be found in the relevant Key Investor Information Document. Fund performance figures are shown in sterling, inclusive of reinvested income and net of the Ongoing Charge and portfolio transaction costs. The figures do not reflect the entry charge paid by individual investors. Sector average performance is calculated on an equivalent basis. Benchmark source: Thomson Datastream, total return, in sterling.

Periods 3 mths 1 year 3 years 5 years 10 years Invesco Perpetual UK Smaller Companies Equity Fund 7.5 24.1 42.6 119.8 142.9 IA UK Smaller Companies NR 7.3 19.1 25.7 95.0 108.5 Numis Smaller Companies (ex Inv Co’s) Index 5.8 18.8 23.4 92.2 119.7 Quartile 2 1 1 2 2 Ranking 23/47 12/47 9/46 12/40 14/33 Past performance is not a guide to future returns 7.5 24.1 42.6 119.8 142.9 7.3 19.1 25.7 95.0 108.5 20 40 60 80 100 120 140 160 3 months 1 year 3 years 5 years 10 years Invesco Perpetual UK Smaller Companies Equity Fund IA UK Smaller Companies NR Cumulative returns

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SLIDE 4

10824/LI/IPUKSCIT – Jan17

Invesco Perpetual UK Smaller Companies Equity Fund 10 year performance

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Past performance is not a guide to future returns Source: Lipper as at 31 March 2017. Fund performance figures are based on the Z (accumulation) share class. As this was launched on 12 November 2012, for the pe riods prior to this launch date, performance figures are based on the accumulation share class, without any adjustment for fees. Performance figures for all share classes can be found in the relevant Key Investor Information Document. Fund performance figures are shown in sterling, inclusive of reinvested income and net of the Ongoing Charge and portfolio transaction costs. The figures do not reflect the entry charge paid by individual investors. Benchmark source: Thomson Datastream, total return, in sterling.

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20 40 60 80 100 120 140 160 Mar 07 Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 IP UK Smaller Companies Equity Fund FTSE All-Share Index Numis Smaller Companies (ex Inv Co’s) Index Total Return (% Growth)

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10824/LI/IPUKSCIT – Jan17

Invesco Perpetual UK Smaller Companies Equity Fund Investment process and portfolio construction

Source: Invesco Perpetual. For illustrative purposes only.

Unconstrained, long term, bottom up stock pickers with a macro overlay Research and idea generation

  • Stock

ideas generated from universe of circa 900 companies

  • Growth

focused

  • Leverage off other Invesco

teams

  • External brokers and research

providers

  • Overlay of macro

ideas and investment themes

Fundamental & financial analysis

  • Over 1000

in-house research profiles

  • Circa 350

company meetings and site visits each year

  • Fundamental analysis of

company and market

  • Detailed financial analysis and

valuation appraisal

Portfolio construction and risk management

  • Rigorous security selection
  • Well diversified portfolio of 80-

100 names

  • Structured sell discipline
  • Long term investors, resulting

low portfolio turnover

  • Multi-level system
  • f risk

management which promotes fund manager accountability

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10824/LI/IPUKSCIT – Jan17

Dramatic fall in sterling in 2016

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Source: Bloomberg, as at 16 May 2017.

70 75 80 85 90 95 100 105 110 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Sterling Exchange Rate Index (2005=100)

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SLIDE 7

10824/LI/IPUKSCIT – Jan17

Small company valuations

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Source: Peel Hunt as at 28 February 2017.

Index PE 12m fwd (ex-loss makers) Growth 12m fwd Div Yield 12m fwd (ex-non payers) Div Growth 12m fwd FTSE All Share 14.2x 15.3% 4.1% 4.7% FTSE All Share (Median) 14.7x 8.8% 3.4% 7.2% Numis Small Companies Index 13.1x 9.6% 3.4% 7.9% Numis Small Companies (Median) 13.2x 9.0% 3.5% 6.6% 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x 16.0x 18.0x May 07 Nov 07 May 08 Nov 08 May 09 Nov 09 May 10 Nov 10 May 11 Nov 11 May 12 Nov 12 May 13 Nov 13 May 14 Nov 14 May 15 Nov 15 May 16 Nov 16 FTSE 100 Mid 250 Small Cap 12m forward PE ratio by FTSE index

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10 20 30 May 07 Nov 07 May 08 Nov 08 May 09 Nov 09 May 10 Nov 10 May 11 Nov 11 May 12 Nov 12 May 13 Nov 13 May 14 Nov 14 May 15 Nov 15 May 16 Nov 16 FTSE 100 Mid 250 Small Cap 12m forward EPS growth by FTSE index (%)

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SLIDE 8

10824/LI/IPUKSCIT – Jan17

Invesco Perpetual UK Smaller Companies Equity Fund

Market cap breakdown (%)

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Source: Invesco Perpetual / Numis as at 31 March 2017. Data may not sum due to rounding.

2.79 0.98 1.49 34.51 23.45 37.03 37.24 15.45 31.96 9.24 5.86 10 20 30 40 50 60 70 80 90 100 IP UK Smaller Co's Equity Fund Numis Smaller Co's (ex Inv Co's) Index £1.5 bn £1bn -1.5bn £500m - 1bn £100m - 500m £0m - 100m Cash

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10824/LI/IPUKSCIT – Jan17

Invesco Perpetual UK Smaller Companies Equity Fund

Sector breakdown

9 Fund (%) Active weight (%) Index1 (%) Oil & Gas 4.75 4.10 Basic Materials 1.67 4.63 Industrials 30.41 26.17 Consumer Goods 4.09 10.48 Health Care 9.70 4.55 Consumer Services 21.01 18.72 Telecommunications 1.41 1.03 Utilities 0.00 0.10 Financials 13.22 24.21 Technology 10.96 6.01 Cash 2.79 0.00

Source: Invesco Perpetual as at 31 March 2017. 1Index is Numis Smaller Companies (ex Inv Cos) Index.

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  • 2.96

4.24

  • 6.39

5.15 2.29 0.38

  • 0.10
  • 10.99

4.95 2.79

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10824/LI/IPUKSCIT – Jan17

Current themes for the Fund

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Source: Invesco Perpetual as at 31 March 2017. For illustrative purposes only.

Self Help / Recovery Roll out / Roll up Structural Growth

4imprint  BooHoo   CVS  Coats Group  FDM  Hilton Food Group  JD Sports  Johnson Service Group   Keywords Studios   SDL   Severfield 

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10824/LI/IPUKSCIT – Jan17

Important information

This presentation is for Professional Clients only and is not for consumer use. 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. Past performance is not a guide to future returns. Where Jonathan Brown and Robin West have expressed opinions, they are based on current market conditions and are subject to change without

  • notice. These opinions may differ from those of other Invesco Perpetual

investment professionals. This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or

  • strategy. Regulatory requirements that require impartiality of

investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities. 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. The Invesco Perpetual UK Smaller Companies Equity Fund may use derivatives (complex instruments) in an attempt to reduce the overall risk

  • f 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. For the most up to date information on our ICVCs, please refer to the relevant fund and share class-specific Key Investor Information Documents, the Supplementary Information Document, the Annual or Interim Short Reports and the Prospectus, which are available using the contact details shown. Issued by: Invesco Fund Managers Limited Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire, RG9 1HH Website: www.invescoperpetual.co.uk Authorised and regulated by the Financial Conduct Authority

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