Invesco Perpetual Select Trust plc
Half-Yearly Report
Six Months Ended 30 November 2007
Invesco Perpetual Select Trust plc (`the Company') is an investment trust,
which was established as a successor vehicle to Merrill Lynch Asset Allocator
plc. The Company is intended as a long-term investment vehicle for investors
and will have an indefinite life.
Investment Objectives and Policies
The Company provides shareholders with a choice of investment objectives and
policies, each intended to generate attractive risk-adjusted returns from
segregated portfolios.
The Company's share capital comprises four classes of shares each of which has
its own separate portfolio of assets and attributable liabilities. Invesco
Asset Management Limited manages the UK Equity, Global Equity and Managed
Liquidity Share Portfolios. The Hedge Fund Share Portfolio is managed by
Fauchier Partners LLP, a hedge fund specialist. The investment objectives and
policies of the Portfolios for these classes of shares are explained in detail
at the start of each Portfolio's Manager's Report.
Share Class Switching
The Company enables shareholders to tailor their asset allocation to reflect
their view of investment markets through the opportunity to switch tax free
between share classes every 6 months.
Performance Statistics
UK Equity Share Portfolio
At At
30 November 31 May %
2007 2007 Change
Net asset value - total return +0.1
Share price - total return 102.5p 102.0p +0.5
Discount 6.1% 6.3%
FTSE All-Share Index - total -3.1
return
Revenue return per share 1.5p 1.5p
Dividend 1.45p 1.50p
Global Equity Share Portfolio
At At
30 November 31 May %
2007 2007 Change
Net asset value - total return +3.9
Share price - total return 109.2p 102.8p +6.3
Discount 5.3% 7.3%
MSCI World Index (�) - total -3.2
return
Revenue return per share 0.9p 0.9p
Dividend 0.9p 0.8p
Hedge Fund Share Portfolio
At At
30 November 31 May %
2007 2007 Change
Net asset value - total return +12.1
Share price - total return 130.5p 104.5p +24.9
(Premium)/discount (5.0)% 5.8%
Merrill Lynch 3 months LIBOR +5.7
+6% pa - total return
Managed Liquidity Share Portfolio
At At
30 November 31 May %
2007 2007 Change
Net asset value - total return +2.5
Share price - total return 103.6p 99.0p +4.6
Discount 0.7% 2.6%
Revenue return per share 2.2p 1.6p
Dividend 2.45p 1.00p
Interim Management Report Incorporating the Chairman`s Statement
Investment Objective and Strategy
During the financial period under review there has been no change in the
Company's investment objective of providing shareholders with a choice of
investment strategies and policies, each intended to generate attractive
risk-adjusted returns from segregated portfolios.
The Company's share capital comprises four share classes, each of which has its
own separate portfolio of assets and liabilities. The investment objectives and
policies of the portfolios for these share classes have not changed during the
financial period under review.
Chairman's Statement
Performance
UK Equity Shares
The net asset value (`NAV') of UK Equity Shares delivered a total return of
0.1% for the six months to 30 November 2007, which compares with a -3.1% total
return on the FTSE All-Share Index. The share price has reflected this as the
discount narrowed from 6.3% to 6.1% at the period end. A dividend of 1.45p per
share was declared in respect of the period.
The portfolio has continued to be geared and the gearing level was unchanged at
113 at the period end.
Global Equity Shares
The shares delivered a NAV total return of 3.9% for the period under review
which compared very favourably with the total return of -3.2% on the MSCI World
Index expressed in sterling. The share price discount also narrowed to end the
period at 5.3%, in from 7.3% reported at 31 May 2007. A dividend of 0.9p per
share was declared in respect of the period.
Hedge Fund Shares
The Hedge Fund Shares continued to deliver a very pleasing performance, even
after the effect on world markets of the sub-prime mortgage problems, giving a
total return on the NAV of 12.5%. The share price total return was 24.9% which
reflected the move from a 5.8% discount at 31 May 2007 to a 5% premium at 30
November 2007.
No dividends have been declared or paid on the Hedge Fund shares.
Managed Liquidity Shares
The Managed Liquidity Shares returned 2.5% in total at the NAV level, including
a dividend of 2.45p. As reported in the report and accounts for the period
ended 31 May 2007, this dividend included an amount of approximately 0.36p per
share paid from reserves. It is intended that the Portfolio will distribute
substantially all its net income in the period it arises, subject to changes in
tax or other accounting issues.
Board Succession Planning
I retired as Chairman and from the Board with effect from 10 January 2008,
having been Chairman of the Company and its predecessor Merrill Lynch Asset
Allocator plc (`MLAA') since the latter's launch in 1999. I considered that
this was an appropriate time to retire following the successful implementation
of the change in structure and investment policy over the last 18 months. I am
pleased to pass the Chairmanship of the Company, with effect from 10 January
2008, to Patrick Gifford who has been filling the roles of Senior Non-Executive
Director and Chairman of the Audit Committee.
Other changes will take place during 2008, including the retirement of Peter
Stormonth Darling in April and Stephen Zimmerman in September. The appointment
of three new Directors, David Rosier, Sir Michael Bunbury and Alan Clifton has
already been announced. I am very confident that their relevant experience and
expertise will be of great value to the Company. I wish Patrick Gifford and the
Board every success in the future.
As a result of his appointment as Chairman of the Company, Mr Gifford has
resigned as Audit Committee Chairman and has been replaced by Sir Michael
Bunbury. Mr Mason has been replaced as Chairman of the Nomination Committee by
Mr Gifford. These changes are effective as at 10 January 2008.
Dividend Policy
The ability to convert shares of one class into another could lead to dilution
or enhancement of revenue reserves per share for each of the share classes,
depending on whether there are net conversions respectively into or out of that
class. In order to minimise this effect the Directors intend to distribute
substantially all net revenues earned for each class between conversion dates.
Accordingly dividends on the UK Equity, Global Equity and Managed Liquidity
Shares will vary from year to year depending on net portfolio income; the Board
aims to declare two dividends annually on these three share classes. Little or
no net income is expected from the assets underlying the Hedge Fund Shares and
no dividends are expected to be paid.
Share Class Switching
The Company enables shareholders to tailor their asset allocation to reflect
their view of prevailing market conditions. Shareholders have the opportunity
to switch between share classes tax free on 1 May 2008 and every six months
thereafter. The first share class switch is shown in note 6. Further
information about the switching mechanics can be found toward the end of this
announcement.
Share Capital Movements
The Board uses the Company's buy back authorities when this is beneficial to
existing shareholders as a whole and in the period under review has bought back
into treasury 1,089,000 UK Equity shares, 2,130,000 Global Equity shares and
507,000 Managed Liquidity shares. The average price bought back at and
enhancement to NAV was respectively 100.1p and 0.1%, 103.7p and 0.2% and 97.9p
and 0.1%.
Since the period end, the Company has bought back into treasury 38,000 UK
Equity shares at 99p, 74,000 Global Equity shares at an average price of 109.6p
and 56,500 Managed Liquidity shares at 97p. In addition, the Company issued
1,032,100 Hedge Fund shares on 21 December 2007 at an issue price of 126p.
Related Party
Invesco Asset Management Limited (`IAML'), a wholly owned subsidiary of Invesco
Limited, acts as Manager and Company Secretary to the Company. Details of
IAML's services and fees arrangements are given in the 31 May 2007 report and
accounts which is available on the Company's website.
Principal Risks and Uncertainties
The principal risks and uncertainties that could affect the Company's business
can be divided into various areas:
* Investment Objective and Policy;
* Risks Applicable to the Company;
* Compulsory Conversion of a Class of Shares;
* Liability of a Portfolio for the Liabilities of another Portfolio;
* Gearing;
* Market Movements and Portfolio Performance;
* Hedging;
* Regulatory;
* Additional Risks Applicable to Managed Liquidity Shares; and
* Additional Risks Applicable to Hedge Fund Shares.
A detailed explanation of these principal risks and uncertainties can be found
on pages 30 to 32 of the report and accounts for the period ended 31 May 2007,
which is available on the Company's website.
In the view of the Board these principal risks and uncertainties are equally
applicable to the remaining six months of the financial year as they were to
the six months under review.
Michael Mason
Chairman
10 January 2008
UK Equity Share Portfolio
Manager`s Report
Investment Objective
The investment objective of the UK Equity Share portfolio is to provide holders
of UK Equity Shares with an attractive real long-term total return by investing
primarily in UK quoted equities. The UK Equity Share Portfolio is
unconstrained, but for performance purposes it is measured against the FTSE
All-Share Index. However, it will have no fixed stock, sector or capitalisation
limits.
Market Review
The UK equity market posted negative returns in the six months to 30 November
2007, as reflected by the 3.1% fall in the FTSE All-Share Index. Within the
Index, mining was the best-performing sector, followed by oil, reflecting
strong commodity and oil prices over the period. At the other end of the
spectrum, real estate and other consumer-facing sectors, such as general
retailers and leisure, were among the worst performing groups, reflecting
expectations of a consumer slowdown.
The review period was dominated by concern that problems in the US sub-prime
mortgage (high-risk home loan) market would spread to the wider financial
system. In fact, concern about which UK financial companies had exposure to
these defaulting loans effectively caused credit markets to dry up, as banks
became unwilling to lend to each other. Against this backdrop, mortgage bank
Northern Rock's shares fell heavily on news that it had approached the Bank of
England for emergency funding in order to continue its normal operations. While
Northern Rock has a good-quality mortgage book, its heavy reliance on interbank
lending meant that it suffered acutely. In response to the well-publicised
sight of customers queuing outside Northern Rock branches across the UK to
withdraw their savings, Chancellor of the Exchequer Alistair Darling intervened
by announcing that the Government would guarantee all existing Northern Rock
accounts, halting a three-day run on the bank's deposit base.
The review period featured mixed news on the health of the UK economy. The UK
Consumer Prices Index for October came in at 2.1% year-on-year (`y-o-y') versus
1.8% y-o-y in September, and was just above the Bank of England's (`BoE') 2%
target. Despite the higher inflation figures, expectations of a reduction in UK
interest rates heightened after the release of the BoE's Quarterly Inflation
report, whereby the projections showed consumer price inflation undershooting
the 2% target by 2009 if interest rates were held at 5.75%, but in line with
the target if they were cut by 50-75 basis points. In the housing market, most
data released during the period concurred with the view that the UK was in the
midst of a housing slowdown. The BoE Monetary Policy Committee left interest
rates on hold at 5.75% over the review period; the rate currently stands at
5.5% after a quarter percentage point cut in December.
Portfolio Performance
The total net asset value of the portfolio rose by 0.1% during the six months
to 30 November 2007, compared with the FTSE All-Share Index, which was down by
3.1%.
The portfolio performed well over the review period, boosted by its large-cap
exposure as well as its defensive bias. Mobile telecommunications company
Vodafone contributed the most to the portfolio's overall returns. The company
is experiencing improvements in its operational performance and is benefiting
from strong growth in its emerging markets businesses. Good performance from
our tobacco holdings BAT and Imperial Tobacco also boosted the portfolio's
returns, as did our holding in computer services company Xansa which was taken
over. Conversely, sugar producer Tate & Lyle's poor performance detracted from
the portfolio's returns after the company issued its third profit warning for
the year.
Portfolio Strategy
In terms of activity within the portfolio, a new holding in media company
Informa was purchased, after a period of weak performance. I believe that
Informa's current valuation looks attractive, as does its long-term track
record of creating value for shareholders through acquisition. I also started a
new position in retailer Marks & Spencer (`M&S'). A 40% fall in the M&S share
price from its peak in May 2007, amid a widespread market sell-off due to
growing concerns of a retail slowdown, has left the stock looking attractive.
Whilst M&S did have a disappointing Christmas, its resilience in previous
downturns, its defensive qualities and `self-help' characteristics all appear
to be under-estimated by the market, and I have been building a position in the
shares despite a generally cautious stance on the consumer sector. M&S has an
impressive management team, a strong balance sheet, and an attractive
valuation. Elsewhere, construction & materials company Balfour Beatty was
purchased for the portfolio after it sold-off aggressively in the market
turmoil, falling to attractive levels. Travel company First Choice was acquired
for the portfolio and was subsequently renamed TUI Travel after it merged with
the tourism division of Germany's TUI AG. Finally, I invested in a new holding
in British Airways after a fall in its share price, in the face of higher oil
prices, provided an attractive buying opportunity.
Conversely, I disposed of media company Reed Elsevier and support-services
company Biffa. I sold financials company HSBC after a resilient performance
through the summer volatility and to reflect my growing concerns about the
outlook for the US economy. Following an agreed bid for chemicals company ICI
by Dutch company Akzo Nobel, the portfolio's holding in ICI was sold.
Outlook
My view of the economic outlook continues to be cautious. I have felt for some
time that the rate of consumer spending growth in the UK would have to moderate
as a result of the very highly leveraged state of household balance sheets, and
as the negative impact of higher interest rates filtered through to consumers'
disposable income. The events of this summer in the credit markets are likely
to leave a lasting impression in the form of higher borrowing costs and a more
prudent approach from the banking sector towards risk across all forms of
lending. This can only serve to exacerbate the slowdown in consumer activity.
There are similar dynamics in the US, where ongoing problems in the US
sub-prime mortgage market have already had a substantial impact on activity in
the housing market, and caused the overall economy to slow.
My prognosis for the UK economy is therefore bleak. But the market as a whole
is aware of the challenges that the economy faces, and they are largely
reflected in valuations. Some parts of the market, however, are much more
vulnerable to the consumer slowdown, and I continue to be wary of cyclical
sectors such as banks, retailers and house-builders.
Instead, I focus on companies that I believe will be able to continue to grow
earnings and dividends, even in the more challenging economic environment that
I foresee. In valuation terms, the UK "mega-caps" continue to look more
attractive than they have done for a long time, and they form an important part
of the portfolio. These are financially strong, highly liquid, globally
diversified businesses, which offer further defensive characteristics. I
believe these characteristics are currently undervalued by the market as a
whole, and should stand the portfolio in good stead going forward.
Mark Barnett
Portfolio Manager
Invesco Asset Management Limited
10 January 2008
UK Equity Share Portfolio - List of Investments at 30 November 2007
Ordinary shares listed in the UK unless stated Market
otherwise
Value % of
Company Activity �'000 Portfolio
Royal Dutch Shell-B Energy 2,245
Shares
-A Shares 1,132
3,377 6.1
Reynolds American - US Tobacco 3,047 5.5
Stock
British American Tobacco Tobacco 3,038 5.5
GlaxoSmithKline Pharmaceuticals & 2,828 5.1
Biotechnology
Imperial Tobacco Tobacco 2,794 5.0
BP Energy 2,692 4.9
Vodafone Telecommunication Services 2,358 4.3
BT Telecommunication Services 2,332 4.2
Tesco Food & Staples Retailing 2,038 3.7
National Grid Utilities 2,034 3.7
Drax Utilities 1,899 3.4
British Energy Utilities 1,551 2.8
Rolls Royce - Ords Capital Goods 1,514
- B Shares 12
1,526 2.8
Scottish & Southern Utilities 1,272 2.3
Energy
Bunzl Capital Goods 1,250 2.3
BAE Systems Capital Goods 1,231 2.2
Capita Commercial Services & 1,203 2.2
Supplies
Rexam Materials 1,141 2.1
Pennon Utilities 1,081 2.0
Associated British Foods Food Beverage & Tobacco 1,079 1.9
Tate & Lyle Food Beverage & Tobacco 1,018 1.8
Hiscox Insurance 983 1.8
AstraZeneca Pharmaceuticals/ 982 1.8
Biotechnology/Life
Sciences
British Airways Transportation 978 1.8
Tui Travel Consumer Services 962 1.7
Marks & Spencer Retailing 903 1.6
Informa Media 896 1.6
BG Energy 842 1.5
Sage Software & Services 839 1.5
Balfour Beatty Capital Goods 824 1.5
Carnival Consumer Services 655 1.2
Protherics Pharmaceuticals/ 620 1.1
Biotechnology/Life
Sciences
Helphire Diversified Financials 582 1.1
Arm Semiconductors Equipment 513 0.9
Impax Environmental Diversified Financials 510 0.9
Markets
Climate Exchange Diversified Financials 454 0.8
Renovo Pharmaceuticals/ 440 0.8
Biotechnology/Life
Sciences
Homeserve Insurance 376 0.7
ITV Media 365 0.7
UK Coal Materials 316 0.6
XL Techgroup - US Stock Diversified Financials 298 0.5
A J Bell Diversified Financials 250 0.5
Vectura Pharmaceuticals/ 248 0.4
Biotechnology/Life
Sciences
Landkom International Food Beverage & Tobacco 222 0.4
Xcounter Health Care Equipment/ 183 0.3
Services
Gyrus Health Care Equipment/ 136 0.2
Services
Idmos Health Care Equipment/ 122 0.2
Services
William Hill Retailing 78 0.1
55,366 100.0
UK Equity Share Portfolio
Income Statement - Unaudited
at 30 November 2007
The Company was incorporated on 25 August 2006
Trading commenced on the Portfolio on 23 November 2006
Six Months Ended 25 August 2006
30 November 2007 to 31 May 2007
Revenue Capital Total Revenue Capital Total
�'000 �'000 �'000 �'000 �'000 �'000
Gains on investments - (661) (661) - 4,204 4,204
Gains on currency hedges - 32 32 - 6 6
Foreign exchange gains - 79 79 - 63 63
Income 920 - 920 884 - 884
Investment management (68) (157) (225) (68) (164) (232)
fee
Other expenses (80) (7) (87) (96) (323) (419)
Net return before 772 (714) 58 720 3,786 4,506
finance costs and
taxation
Finance costs (41) (96) (137) (47) (109) (156)
Return on ordinary 731 (810) (79) 673 3,677 4,350
activities before
tax
Tax on ordinary (9) 3 (6) (14) 3 (11)
activities
Return on ordinary 722 (807) (85) 659 3,680 4,339
activities after
tax for the financial
period
Basic return per 1.5p (1.7)p (0.2)p 1.5p 8.2p 9.7p
ordinary share
Summary Net Assets - Unaudited
at 30 November 2007
30 November 31 May
2007 2007
�'000 �'000
Fixed assets 55,366 55,125
Current assets 521 5,011
Creditors falling due within one year, excluding (321) (501)
borrowings
Borrowings (6,472) (6,500)
Net assets 49,094 53,135
Net asset value per share 105.9p 108.8p
Gearing:
Actual 113 112
Asset 113 104
Global Equity Share Portfolio
Manager's Report
Investment Objective
The investment objective of the Global Equity Share portfolio is to deliver
long-term capital growth by investing principally in global securities
(including UK equities). The Global Equity Share portfolio is unconstrained,
but for performance management purposes it is measured against the MSCI World
Index (in Sterling). However, it will have no fixed stock, sector, geographic
or capitalisation limits; investments are made wherever the Portfolio Manager
feels the most attractive returns are found, while ensuring that there is
sufficient diversification at the total portfolio level.
Market and Economic Review
Stockmarkets fell heavily in more developed countries during the period under
review, as the extent of sub-prime mortgage losses and writedowns of asset
values in financials stocks caused a great deal of negative sentiment among
investors. Banks and other financial institutions became reluctant to lend to
each other as counterparty risk was perceived to have risen, despite
interventions by central banks to try to normalise lending rates and improve
liquidity. This, in turn, meant that the general cost of borrowing rose,
negatively affecting companies in all sectors. Asian and emerging markets
largely escaped the problems in developed markets and, in general, provided
good positive returns. This increased the debate over how far their economies
may have decoupled from developed markets.
Economic news from the US deteriorated as its housing market fell. Labour
conditions weakened slightly, but more concerning was the fall in consumer
sentiment, which may impact on discretionary spending. Eurozone economic
activity remained much more buoyant than most analysts had expected, in spite
of the strong appreciation of the euro, but signs of a slowdown emerged in the
latter part of the year, as evidenced by a slowing of growth in
business-investment spending. Strong growth in Asia led by China and India, and
particularly in retail sales and exports, boosted corporate earnings and
stockmarket valuations. However, inflationary pressures are causing concern in
some Asian countries and asset valuations have become extended in certain
areas.
Portfolio Strategy and Review
Over the review period the total net assets of the portfolio rose by 3.9%,
while the MSCI World Index, measured in sterling (total return), fell by 3.2%.
Over the same period the Company's share price increased by 6.3%.
The investment strategy of the portfolio is stock driven, with geographical
allocations dependent on our stock selections. Having said this, the regional
balance of the portfolio proved beneficial to returns, as our stock selections
leaned towards the higher-growth markets of Asia and the emerging markets. Our
holdings within Asia produced excellent returns, mainly from our relatively
high weightings in Hong Kong and China, as did emerging markets, especially
Brazil, although returns from a number of holdings in smaller Asian countries
disappointed. Being overweight in the UK and Russia aided returns, as did
having a very low weighting in the US. Having no weighting in Australia over
the period meant that we missed out on some positive performance due to price
increases in basic materials, but the outlook for the sector has become more
uncertain, given the expected growth slowdown in developed economies.
The two best stock performers in the portfolio were China Mobile and Petrobras
ADRs. Hong Kong-based China Mobile continues to add significant subscriber
numbers and is a highly liquid stock. We took some profit on this holding
during the period. Petrobras, the Brazilian state owned oil giant, benefited
from record high energy prices and from evidence that Brazil's energy reserves
were much higher than originally believed. Our worst performing stock was
Macquarie Korea Infrastructure fund, which invests in roads, tunnels and
bridges. Its share price declined as high yield companies in general fell out
of favour in the region.
When selecting stocks to invest in, we favour quality businesses which are able
to display balance sheet strength, good free cashflow management and have
valuations which do not fully value the fundamentals of the business. We
progressively took profits by selling Asian holdings when their valuations had
become stretched, and reinvested into stocks with more attractive valuations
and outlooks. Examples of holdings purchased include Datacraft, an Asia-Pacific
IT services & solutions provider, HKR International, a Hong Kong incorporated
property-development company, and Hang Seng Bank, also of Hong Kong.
During the review period, we halved our already low exposure to the US market,
due to concerns over the general outlook for the region. We significantly added
to Latin America and (emerging) Europe, the Middle East and African countries,
as fundamentals continued to improve within emerging markets, and we continued
to find value and new areas of investment as they matured. Our increased
exposure enabled us to take advantage of opportunities provided by
infrastructure development and improving domestic demand. Similarly in Asia, we
are still able to find companies with attractive valuations and good earnings
growth. Domestic-demand growth and infrastructure expansion are also key
secular-growth themes in the region.
The portfolio's overall exposure, even within emerging markets, remains fairly
defensive, and we are comfortable with the fundamentals of our holdings going
into 2008.
Outlook
The downturn in the US housing market and the crisis in sub-prime mortgage
financing have led to a more subdued assessment of economic growth in developed
countries. The spectre of a recession looms larger in the US, but we think this
will be avoided. European activity also looks set to slow. The eurozone economy
has been helped by the strength of export growth to eastern Europe, Russia and
Turkey, as well as Asia ex-Japan, in recent years. This has offset the decline
in importance of the US to European industry. Export growth eastwards remains
healthily positive, but the rate of growth is now slipping, which implies
perhaps some loss of market share due to the rapid appreciation of the euro.
Outside these areas, economic conditions and confidence levels in emerging
Asia, Latin America and Eastern Europe have remained much more buoyant, but
that resilience has yet to be tested by a significant downturn in economic
activity in the core developed economies.
At a corporate level we continue to find companies in good health, outside of
specific financial stocks, with strong cash-flows and generally reasonable
valuations, but the outlook for earnings growth has deteriorated in a number of
areas. Markets previously supported by dividend increases, share buybacks and
merger & acquisition activity have, to a degree, been undermined by tighter
credit conditions.
Stockmarkets, with the exception of China, look reasonably valued, but further
gains will become harder to come by as corporate earnings growth slows. Our
ability to pick individual stocks which can outperform has become even more
important, but we expect to continue to find new holdings which will benefit
the portfolio.
Bob Yerbury
Portfolio Manager
Invesco Asset Management Limited
10 January 2008
Global Equity Share Portfolio
List of Investments
at 30 November 2007
Ordinary shares unless stated otherwise Market
Value % of
Company Activity Country �'000 Portfolio
GlaxoSmithKline Pharmaceuticals/
Biotechnology/
Life Sciences United 1,641 4.1
Kingdom
BP Energy United 1,452 3.6
Kingdom
Petroleo Brasileiro Energy Brazil 1,391 3.5
Banco Bilbao Viscaya Banks Spain 1,283 3.2
Argentaria
Norilsk Nickel Materials Russia 1,274 3.2
Imperial Tobacco Food Beverage & Tobacco United 1,215 3.0
Kingdom
Novartis Pharmaceuticals/
Biotechnology/
Life Sciences Switzerland 1,172 2.9
National Grid Utilities United 1,148 2.9
Kingdom
Telefonica Telecommunication Spain 1,102 2.8
Services
Vodafone Telecommunication United 1,100 2.7
Services Kingdom
Obrascon Huarte Lain Capital Goods Spain 1,059 2.6
UPM-Kymmene Materials Finland 1,058 2.6
Hellenic Telecommunication Greece 1,037 2.6
Telecommunications Services
Organisation
StatoilHydro Energy Norway 1,017 2.5
Banco Bradesco Banks Brazil 945 2.4
British Energy Utilities United 916 2.3
Kingdom
Yell Media United 868 2.2
Kingdom
Telecom Egypt Telecommunication Egypt 866 2.2
Services
BT Telecommunication United 862 2.1
Services Kingdom
Reed Elsevier Media Netherlands 853 2.1
Wal-Mart Stores Food & Staples Retailing United 852 2.1
States
United Phosphorus Materials India 848 2.1
ING Diversified Financials Netherlands 831 2.1
Total Energy France 804 2.0
Hon Hai Precision Technology Hardware/ Taiwan 795 2.0
Equipment
Hang Seng Bank Banks Hong Kong 753 1.9
Grupo Aeroportuario Transportation Mexico 745 1.9
del Pacifico
Banco De Oro-EPCI Banks Philippines 740 1.8
Rolls Royce - Ord Capital Goods United 714
Kingdom
- B Shares 5
719 1.8
Jardine Matheson Diversified Financials Hong Kong 698 1.7
China Mobile Telecommunication Hong Kong 689 1.7
Services
American International Insurance United 655 1.6
States
West Japan Railway Transportation Japan 652 1.6
Pepsico Food Beverage & Tobacco United 640 1.6
States
Tenaga Nasional Utilities Malaysia 634 1.6
Macquarie Korea Transportation Korea 618 1.5
Infrastructure
Lawson Food & Staples Retailing Japan 558 1.4
Nissan Motor Automobiles & Components Japan 545 1.4
HKR International Real Estate Hong Kong 537 1.3
British Airways Transportation United 521 1.3
Kingdom
Datacraft Asia Technology Hardware/ Singapore 508 1.3
Equipment
Nippon Building Fund Real Estate Japan 502 1.3
NTT DoCoMo Telecommunication Japan 470 1.2
Services
Daegu Bank Banks Korea 459 1.1
Sterling Energy Energy United 414 1.0
Kingdom
Cardinal Health Healthcare Equipment/ United 349 0.9
Services States
Inpar Real Estate Brazil 303 0.8
Kohls Retailing United 294 0.7
States
Polaris Securities Diversified Financials Taiwan 180 0.4
DBS Group Banks Singapore 176 0.4
Cambridge Industrial Real Estate Singapore 164 0.4
Trust
Federal-Mogul Goetze Automobiles & Components India 77 0.2
(India)
China Real Estate Real Estate United 77 0.2
Opportunities Kingdom
Jasa Marga Transportation Indonesia 69 0.2
40,135 100.0
Global Equity Share Portfolio
Income Statement - Unaudited
at 30 November 2007
The Company was incorporated on 25 August 2006
Trading commenced on the Portfolio on 23 November 2006
Six Months Ended 25 August 2006
30 November 2007 to 31 May 2007
Revenue Capital Total Revenue Capital Total
�'000 �'000 �'000 �'000 �'000 �'000
Gains on investments - 1,232 1,232 - 4,006 4,006
Foreign exchange gains - 7 7 - 160 160
Income 586 - 586 551 - 551
Investment management (55) (179) (234) (55) (132) (187)
fee
Other expenses (66) (13) (79) (77) (120) (197)
Net return before 465 1,047 1,512 419 3,914 4,333
finance costs and
taxation
Finance costs (1) (2) (3) - - -
Return on ordinary 464 1,045 1,509 419 3,914 4,333
activities before
tax
Tax on ordinary (104) 54 (50) (74) 39 (35)
activities
Return on ordinary 360 1,099 1,459 345 3,953 4,298
activities after
tax for the financial
period
Basic return per 0.9p 2.9p 3.8p 0.9p 10.5p 11.4p
ordinary share
Summary Net Assets - Unaudited
at 30 November 2007
30 November 31 May
2007 2007
�'000 �'000
Fixed assets 40,135 41,022
Current assets 2,886 4,520
Creditors falling due within one year (181) (1,401)
Net assets 42,840 44,141
Net asset value per share 113.5p 110.9p
Hedge Fund Share Portfolio
Managers' Report
Investment Objective
The investment objective of the Hedge Fund Share portfolio is to achieve an
absolute return of 3-month sterling LIBOR plus 6% p.a. over a rolling 5-year
period, coupled with low volatility. Capital preservation is a priority.
Performance
For the six months to 30 November 2007, Fauchier Allocator Funds I and II
(collectively the `FAF funds'), which constitute the Invesco Perpetual Select
Trust plc Hedge Fund Share portfolio, achieved a positive return of 12.5% net
of fees. Since the FAF funds first invested in portfolios of hedge funds on 1
November, 2003, they have achieved an average annual compound return of 11.8%
which is in line with its stated target of 6% over 3-month Sterling LIBOR. Over
the same period the annualised volatility of the FAF funds has been
approximately 4.5% and their "beta" to the FTSE All-Share Index some 0.2 and to
the Citigroup UK Gilt Index less than 0.1.
The table below gives details of the FAF funds monthly Net Asset Value
performance since 1 November 2003:
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2007 1.32% 2.48% 1.17% 1.65% 1.73% 1.88% 3.88% -0.53% 1.88% 5.08% -0.16% *
22.23%
2006 2.46% -0.10% 1.01% 1.92% -1.09% -0.32% 0.52% 0.40% -0.79% 0.57% 1.26% 1.50% 7.53%
2005 0.39% 1.87% -0.53% -1.13% -0.41% 1.06% 1.71% 1.74% 2.13% -1.50% 0.76% 2.18% 8.48%
2004 1.41% 1.15% 1.19% -0.48% -1.21% 0.29% 0.08% 0.57% 0.64% 0.80% 2.04% 1.07% 7.79%
2003 0.52% 2.02% **
2.55%
* Eleven month period to 30 November 2007
** Two month period to 31 December 2003
The FAF Funds' Portfolio
As at 30 November 2007 the FAF funds had holdings in 19 hedge funds across nine
different strategies, five fewer funds than at the end of the last financial
period ended 31 May 2007. Approximately 70% of the FAF funds' assets were
invested in Absolute Value strategies with the balance in Relative Value
strategies. The 31 May 2007 report and accounts contains a description of
individual hedge fund strategies.
Hedge Fund Strategies
The table below shows the contribution to the Company's performance by each of
the strategies included in the FAF funds for the six months ended 30 November
2007:
Macro -0.1%
Equity Long Bias +0.9%
Equity Hedged High +1.0%
Volatility
Equity Hedged Low +0.8%
Volatility
Short Bias +0.5%
Specialist Credit +3.8%
Event Driven +5.2%
Volatility Trading +0.1%
Fixed Income +0.3%
Multiple Strategy -0.1%
For the period under review, the most successful strategy was Event Driven
where one of the funds capitalised on the weakness of the US sub-prime market
and made an outsized contribution to performance. The Specialist Credit fund
also continued to make excellent returns on the basis of short positions in
sub-prime and other forms of corporate debt. We have been cautious of credit
for some time and continue to prefer managers who have been running well-hedged
books.
Even with the significant difficulties in equity markets in August and
November, Equity Long/Short managers made a positive contribution to
performance. The environment was good for stock pickers as volatility increased
and price movements became more discriminating. Short Bias funds also performed
positively, importantly contributing to performance during times of equity
market difficulty. The other strategy offering a degree of `insurance' to
portfolios, Volatility Trading, made little contribution overall as profitable
trading during periods of high market volatility were offset by less good
results at other times.
The performance of Macro managers was somewhat disappointing. Gains were made
from equities - especially in emerging markets - with increased volatility also
providing opportunities. Fixed income markets proved more difficult and one or
two managers in particular were caught out by the changing sentiment in the
bond markets. Both Fixed Income and Multiple Strategy managers made little
impact on performance in the period.
Outlook
It is our view that the hedge funds in the Company's portfolio will be well
suited to take advantage of conditions in markets over the coming months, which
are likely to remain turbulent. Well-hedged Equity Long/Short funds should
continue to prosper during a period where superior stock selection skills
should be rewarded. Macro funds should also benefit as volatility continues to
affect fixed interest, foreign exchange and commodity markets.
We do not expect that returns from short positions in the sub-prime credit area
will continue to be of the magnitude achieved over the last six months. Also,
given likely credit conditions, returns from LBO-related mergers and
acquisitions are likely to be muted. Continuing problems in credit markets
should, however, create opportunities for the FAF funds' investments in
Specialist Credit funds that invest both long and short. Uncertain conditions
should also favour the FAF funds' investment in the Volatility Trading area.
Fauchier Partners LLP
10 January 2008
Hedge Fund Share Portfolio
List of Investments
at 30 November 2007
Market
Value % of
Strategy Fund Name �'000 Portfolio
Macro Wexford Offshore Spectrum 1,333 5.8
Explorer Global 1,315 5.7
Drawbridge Global Macro 1,212 5.2
Clarium Capital 913 3.9
Equity Long Bias Criterion Horizons Offshore 1,272 5.5
Lansdowne UK Equity 1,217 5.2
Equity Hedged High Elm Ridge Value Partners 1,213 5.2
Volatility Offshore
CCM Small Cap Value 1,186 5.1
Indus Pacific Smaller 1,173 5.1
Companies
Bay Resource Partners 1,105 4.8
Offshore
Equity Hedged Low Daedalus Offshore 1,009 4.4
Volatility
Marathon Vertex Japan 814 3.5
Short Bias Kingsford International 431 1.9
Ursus International 423 1.8
Specialist Credit Harbinger Capital Partners 2,160 9.3
Offshore Fund I
Event Driven Paulson Advantage Plus 2,371 10.3
OZ Europe Overseas Fund II 1,360 5.9
Volatility Trading Lydian Global Opportunities 1,238 5.4
Fund
Multiple Strategy Shepherd Investments 1,394 6.0
International
Total underlying hedge fund 23,139 100.0
assets
Net current assets 2,819
Total 25,958
Fauchier Partners investments
The Fauchier Partners investments are held by the Company through four Medium
Term Notes (`MTNs') which are invested in each fund of hedge funds, Fauchier
Allocator Fund I Limited and Fauchier Allocator Fund II Limited, listed on the
Irish Stock Exchange. The Fauchier Partners investments, whilst held in two
separate funds via the four MTNs, represent one overall portfolio, and the
allocations to the hedge funds should be viewed as such.
The definitions of the various hedge fund strategies are detailed in the
Glossary of Terms contained on page 69 of the 31 May 2007 report and accounts.
Hedge Fund Share Portfolio
Income Statement - Unaudited
at 30 November 2007
The Company was incorporated on 25 August 2006
Trading commenced on the Portfolio on 23 November 2006
Six Months Ended 25 August 2006
30 November 2007 to 31 May 2007
Revenue Capital Total Revenue Capital Total
�'000 �'000 �'000 �'000 �'000 �'000
Gains on investments - 2,844 2,844 - 2,301 2,301
Income 3 - 3 6 - 6
Investment management - (36) (36) - (34) (34)
fee
Other expenses (35) - (35) (40) (19) (59)
Net return before (32) 2,808 2,776 (34) 2,248 2,214
finance costs and
taxation
Finance costs - (1) (1) - - -
Return on ordinary (32) 2,807 2,775 (34) 2,248 2,214
activities before
tax
Tax on ordinary - 1 1 - - -
activities
Return on ordinary (32) 2,808 2,776 (34) 2,248 2,214
activities after
tax for the financial
period
Basic return per (0.2)p 13.6p 13.4p (0.2)p 11.5p 11.3p
ordinary share
Summary Net Assets - Unaudited
at 30 November 2007
30 November 31 May
2007 2007
�'000 �'000
Fixed assets 25,958 22,761
Current assets 92 1,160
Creditors falling due within one year (33) (1,036)
Net assets 26,017 22,885
Net asset value per share 124.3p 110.9p
Managed Liquidity Share Portfolio
Managers' Report
Investment Objective
The investment objective of the Managed Liquidity Share portfolio is to produce
a high level of income return combined with a high degree of security. The
portfolio invests in a range of Sterling-based or related money market fund
assets (which may include transferable securities, money market instruments,
warrants, collective investment schemes and deposits), either directly or
indirectly through money market funds, including funds managed by Invesco
Perpetual or its associated companies.
Market and Economic Review
The Bank of England (`BoE') left interest rates on hold throughout the six
months under review. At the start of the period, with Consumer Prices Index
(`CPI') inflation more than one percentage point above the Government's 2%
target, it appeared that UK interest rates would rise further. However, as the
period progressed investors became increasingly risk averse, on concerns that a
declining US housing market and ongoing problems related to sub-prime mortgages
could spread. Banks and other financial institutions became more wary of
lending to each other, as counterparty risk was perceived to have increased.
This decline in the availability of credit led to further concerns that it may
slow global economic growth.
The 3-month sterling London Interbank Offered Rate (`LIBOR') started the period
at 5.81%, only slightly above the 5.75% base rate. However, the cost of
borrowing funds in sterling money markets surged to 6.90% in September. The
problems at Northern Rock, as well as wider global credit concerns, sparked
unease in London's interbank market and caused banks and other financial
institutions to become reluctant to lend to each other and, following signs
that the commercial paper market was stabilising, the rate subsequently dropped
back to 6.24% by early October, before drifting higher to end November at
6.61%. This prompted the BoE to announce that it would offer banks emergency
funds for five weeks, rather than the usual one-week period, in an effort to
"alleviate concerns that money-market conditions will be particularly tight
over the year end".
Portfolio Strategy and Review
Our strategy remains broadly unchanged. Over the period, we maintained holdings
in floating-rate notes, the yields of which are reset every three months to
reflect changes in the LIBOR - the rate at which the largest banks lend money
to one another. These holdings helped to increase the portfolio's return in
times when interbank interest rates have been rising.
Outlook
Although UK CPI inflation moderated to 2.1% year-on-year (`y-o-y') in November,
the RPI measure, which includes mortgage-interest repayments, climbed to 4.3%
y-o-y. With crude-oil prices remaining at around U$90 per-barrel and food
prices increasing, CPI inflation is likely to remain above the 2% target in the
short term. Despite inflation at an elevated level, renewed turmoil in
financial markets and signs of a cooling UK economy are likely to lead to cuts
in UK interest rates, the first of which was delivered on 6 December. With the
BoE's Quarterly Inflation Report highlighting that it believes that lower
interest rates will be required to support the economy, two further cuts of
0.25% are expected.
Paul Read and Paul Causer
Portfolio Managers
Invesco Asset Management Limited
10 January 2008
Managed Liquidity Share Portfolio
List of Investments
at 30 November 2007
Market
Value
Company �'000
Invesco Perpetual Money Fund 17,963
Managed Liquidity Share Portfolio
Income Statement - Unaudited
at 30 November 2007
The Company was incorporated on 25 August 2006
Trading commenced on the Portfolio on 23 November 2006
Six Months Ended 25 August 2006
30 November 2007 to 31 May 2007
Revenue Capital Total Revenue Capital Total
�'000 �'000 �'000 �'000 �'000 �'000
Gains on investments - 16 16 - 324 324
Income 541 - 541 369 - 369
Investment management (13) - (13) (28) (5) (33)
fee
Other expenses (29) (2) (31) (49) (20) (69)
Net return before 499 14 513 292 299 591
finance costs and
taxation
Finance costs - - - - - -
Return on ordinary 499 14 513 292 299 591
activities before
tax
Tax on ordinary (14) - (14) (2) 2 -
activities
Return on ordinary 485 14 499 290 301 591
activities after
tax for the financial
period
Basic return per 2.2p 0.1p 2.3p 1.6p 1.6p 3.2p
ordinary share
Summary Net Assets - Unaudited
at 30 November 2007
30 November 31 May
2007 2007
�'000 �'000
Fixed assets 17,963 18,681
Current assets 4,644 3,589
Creditors falling due within one year (37) (41)
Net assets 22,570 22,229
Net asset value per share 100.7p 101.6p
Condensed Income Statement
for the six months ended 30 November 2007
The Company was incorporated on 25 August 2006
The Company commenced trading on 23 November 2006.
Six Months Ended 25 August 2006
30 November 2007 to 31 May 2007
Revenue Capital Total Revenue Capital Total
�'000 �'000 �'000 �'000 �'000 �'000
Gains on investments - 3,431 3,431 - 10,835 10,835
Gains on currency - 32 32 - 6 6
hedges
Foreign exchange - 86 86 - 223 223
gains
Income 2,050 - 2,050 1,810 - 1,810
Investment management (136) (372) (508) (151) (335) (486)
fee
Other expenses (210) (22) (232) (262) (482) (744)
Net return before 1,704 3,155 4,859 1,397 10,247 11,644
finance costs and
taxation
Finance costs (43) (99) (142) (47) (109) (156)
Return on ordinary 1,661 3,056 4,717 1,350 10,138 11,488
activities before
tax
Tax on ordinary (126) 58 (68) (90) 44 (46)
activities
Return on ordinary 1,535 3,114 4,649 1,260 10,182 11,442
activities after
tax for the financial
year
Basic return per
ordinary share
UK Equity Share 1.5p (1.7)p (0.2)p 1.5p 8.2p 9.7p
Portfolio
Global Equity Share 0.9p 2.9p 3.8p 0.9p 10.5p 11.4p
Portfolio
Hedge Fund Share (0.2)p 13.6p 13.4p (0.2)p 11.5p 11.3p
Portfolio
Managed Liquidity 2.2p 0.1p 2.3p 1.6p 1.6p 3.2p
Share Portfolio
The total column of this statement represents the Company's profit and loss
account, prepared in accordance with UK Accounting Standards. The supplementary
revenue and capital columns are both prepared under guidance published by the
Association of Investment Companies. All items in the above statement derive
from continuing operations and the Company has no other gains or losses.
Therefore no statement of recognised gains or losses is presented. No
operations were acquired or discontinued in the period. Income Statements for
the different share classes are shown on the preceding pages.
Condensed Reconciliation of Movements in Shareholders' Funds
for the six months ended 30 November 2007
The Company was incorporated on 25 August 2006
The Company commenced trading on 23 November 2006.
Capital
Share Redemp- Capital Capital
Share Premium Special tion Reserve- Reserve- Revenue
Capital Account Reserve Reserve Realised Unrealised Reserve Total
�'000 �'000 �'000 �'000 �'000 �'000 �'000 �'000
25 August 2006 to 31 May 2007
Proceeds from 1,309 129,639 - - - - - 130,948
issue of ordinary
shares
Redemption of - - (50) 50 - - - -
preference shares
Transfer to - (129,639) 129,639 - - - - -
special reserve
A Share 3 - (3) - - - - -
conversion
Net return on - - - - 1,462 8,720 1,260 11,442
ordinary
activities
Balance at 31 May 1,312 - 129,586 50 1,462 8,720 1,260 142,390
2007
Six Months Ended 30 November 2007
Balance as at 31 May 2007 1,312 - 129,586 50 1,462 8,720 1,260 142,390
Interim dividend for 2007 - - - - - - (1,156) (1,156)
Cancellation of deferred shares - - (2) 2 - - - -
Net return from ordinary - - - - 3,575 (461) 1,535 4,649
activities
Interim dividend for 2008 - - - - - - (1,567) (1,567)
Share buy backs - - (3,795) - - - - (3,795)
Balance at 30 November 2007 1,312 - 125,789 52 5,037 8,259 72 140,521
Condensed Balance Sheet
at 30 November 2007
At 30 November 2007 UK Global Hedge Managed
Equity Equity Fund Liquidity Total
�'000 �'000 �'000 �'000 �'000
Fixed assets
Investments held at fair 55,366 40,135 25,958 17,963 139,422
value
Current assets
Debtors 521 297 2 151 971
Cash and cash funds - 2,589 90 4,493 7,172
521 2,886 92 4,644 8,143
Creditors: amounts (6,793) (181) (33) (37) (7,044)
falling due within
one year
Net current (liabilities) (6,272) 2,705 59 4,607 1,099
/assets
Net assets 49,094 42,840 26,017 22,570 140,521
Capital and reserves
Share capital 475 399 209 229 1,312
Special reserve 45,715 37,310 20,809 21,955 125,789
Capital redemption 19 16 9 8 52
reserve
Other reserves:
Capital reserves - 1,569 3,186 (8) 290 5,037
realised
Capital reserves - 1,304 1,866 5,064 25 8,259
unrealised
Revenue reserve 12 63 (66) 63 72
Shareholders' funds 49,094 42,840 26,017 22,570 140,521
Net asset value per 105.9p 113.5p 124.3p 100.7p
ordinary share -
basic
At 31 May 2007
Fixed assets
Investments held at fair 55,125 41,022 22,761 18,681 137,589
value
Current assets
Debtors 1,617 886 457 1,090 4,050
Cash and cash funds 3,394 3,634 703 2,499 10,230
5,011 4,520 1,160 3,589 14,280
Creditors: amounts (7,001) (1,401) (1,036) (41) (9,479)
falling due within
one year
Net current (liabilities) (1,990) 3,119 124 3,548 4,801
/assets
Net assets 53,135 44,141 22,885 22,229 142,390
Capital and reserves
Share capital 488 398 207 219 1,312
Special reserve 48,289 39,430 20,456 21,411 129,586
Capital redemption 19 15 8 8 50
reserve
Other reserves:
Capital reserves - 108 1,108 27 219 1,462
realised
Capital reserves - 3,572 2,845 2,221 82 8,720
unrealised
Revenue reserve 659 345 (34) 290 1,260
Shareholders' funds 53,135 44,141 22,885 22,229 142,390
Net asset value per 108.8p 110.9p 110.9p 101.6p
ordinary share -
basic
Condensed Cash Flow Statement
for the six months ended 30 November 2007
The Company was incorporated on 25 August 2006
The Company commenced trading on 23 November 2006
Six Months 25 August
Ended 2006 to
30 November 31 May
2007 2007
�'000 �'000
Reconciliation of operating profit to operating
cash flows
Total return before finance costs and taxation 4,859 11,644
Adjustment for gains on investments (3,433) (10,835)
Adjustment for exchange gains (85) (223)
Decrease/(increase) in debtors 173 (682)
Increase in creditors 61 445
Tax on unfranked investment income (79) (39)
Overseas tax (54) (57)
Net cash inflow from operating activities 1,442 253
Servicing of finance (88) 2
Equity dividends paid (2,723) -
Capital expenditure and financial investment 2,523 (12,549)
Net cash outflow before management of liquid 1,154 (12,294)
resources and financing
Management of liquid resources 2,632 (9,654)
Financing
Net proceeds from issue of shares - 15,801
Shares bought back (3,796) -
Movement in bank borrowing (500) 6,500
(Decrease)/increase in cash (510) 353
Reconciliation of net cash flow to movement in net
funds
Decrease in cash (510) 353
Cashflow from movement in liquid resources (2,632) 9,654
Exchange movements 85 223
Cash outflow/(inflow) from movement in debt 27 (6,500)
Net funds at beginning of period 3,730 -
Net funds at end of period 700 3,730
Analysis of changes in net funds
31 May Exchange Cash 30 November
2007 Movements Flow 2007
�'000 �'000 �'000 �'000
Cash 576 85 (510) 151
Short-term deposits 9,654 - (2,632) 7,022
Bank loans (6,500) - 500 (6,000)
Bank overdraft - - (473) (473)
3,730 85 (3,115) 700
Notes to the Condensed Financial Statements
1. The condensed financial statements have been prepared using the same
accounting policies as those adopted in the report and accounts for the period
to 31 May 2007, which have been prepared under the historical cost convention
and are consistent with applicable UK Accounting Standards and with the
Statement of Recommended Practice "Financial Statements of Investment Trust
Companies".
2. Invesco Asset Management Limited (`IAML'), is entitled to a basic fee
(payable quarterly) in respect of each portfolio (0.75% per annum of net assets
in the case of the UK Equity Share and Global Equity Share portfolios and 0.25%
per annum of net assets in the case of the Hedge Fund Share, Managed Liquidity
Share and A Share portfolios). IAML is also entitled to receive performance
fees in respect of the UK Equity Share and Global Equity Share portfolios.
A performance fee has been accrued at the period end on the Global Equity Share
portfolio of �50,000.
Fauchier Partners Management charges the Fauchier Managed Funds an annual
management fee of 1% of those funds' net asset values. In addition, the
managers of the underlying hedge funds in which Fauchier Managed Funds invest
charge an additional annual management fee. Both management fees and finance
costs are charged in accordance with the Board's expected returns to the
applicable portfolio.
Further details of these fees are disclosed in the final report and accounts
for the period ended 31 May 2007.
3. Tax expense represents the sums of tax currently payable and any deferred
tax, with any tax payable being based on the taxable profit for the period.
Investment trusts which have been approved under Section 842 of the Income and
Corporation Taxes Act 1988 are not liable for taxation on capital gains.
4. Basic Return per Ordinary Share
Basic revenue, capital and total return per ordinary share is based on each of
the returns on ordinary activities after taxation as shown by the Income
Statement for the applicable Share and on the following number of shares being
the weighted number of shares in issue throughout the period for each
applicable Share:
Weighted Average Number of Shares
Share 30 November 2007 31 May 2007
UK Equity 48,118,167 44,773,798
Global Equity 38,305,654 37,607,185
Hedge Fund 20,689,272 19,593,000
Managed Liquidity 21,852,861 18,404,734
5. Net asset values per share
The net asset values per share were based on the following Shareholders' funds
and shares in issue at the period end:
Shareholders' Funds Shares in Issue at Period End
30 November 31 May 30 November 31 May
2007 2007 2007 2007
�'000 �'000 Number Number
UK Equity 49,094 53,135 46,341,819 48,823,719
Global Equity 42,840 44,141 37,756,247 39,808,789
Hedge Fund 26,017 22,885 20,933,641 20,643,255
Managed 22,570 22,229 22,413,267 21,870,401
Liquidity
6. Movements in Ordinary Share Capital and Share Class Switching
UK Global Hedge Managed
Equity Equity Fund Liquidity
Ordinary 1p shares:
Brought forward 31 May 48,823,719 39,808,789 20,643,255 21,870,401
2007
Share buy backs (1,089,000) (2,130,000) - (507,000)
November 2007 switching (1,392,900) 77,458 290,386 1,049,866
Carry forward 30 Nov 2007 46,341,819 37,756,247 20,933,641 22,413,267
Treasury shares 1,089,000 2,130,000 - 507,000
Total shares in issue 30 47,430,819 39,886,247 20,933,641 22,920,267
Nov 2007
Share Class Switching:
November 2007 switching � �89,000 �357,000 �1,052,000
(1,498,000)
Buy backs after 30
November 2007:
Number bought back 38,000 74,000 - 56,500
Average price (pence) 99.0 109.6 n/a 97.0
In addition to the above buy backs after the period end of 30 November 2007,
1,032,100 Hedge Fund shares were issued on 21 December 2007 at 126p per share.
7. Dividends
The following interim dividends were paid during the period.
Paid 20 November 2007 Paid 18 June 2007
Dividend Number Total Dividend Number Total
Rate Of shares �'000 Rate Of shares �'000
Dividends on
ordinary shares:
UK Equity 1.45p 48,115,519 698 1.5p 44,752,594 671
Global Equity 0.90p 37,937,789 342 0.8p 37,595,658 301
Managed 2.45p 21,526,401 527 1.0p 18,386,589 184
Liquidity
1,567 1,156
8. It is the intention of the Directors to conduct the affairs of the Company
so that it satisfies the conditions for approval as an investment trust company
set out in section 842 of the Income and Corporation Taxes Act 1988.
9. The financial information contained in this half-yearly report which has not
been reviewed or audited, does not constitute statutory accounts as defined in
section 240 of the Companies Act 1985. The figures and financial information
for the period ended 31 March 2007 are extracted and abridged from the
published accounts and do not constitute the statutory accounts for that
period. Those accounts have been delivered to the Registrar of Companies and
included the Report of the Independent Auditors, which was unqualified and did
not include a statement under either 237(2) or 237(3) of the Companies Act
1985.
By order of the Board
Invesco Asset Management Limited
Company Secretary
10 January 2008
Directors' Responsibility Statement
in respect of the preparation of the half-yearly financial report
The Directors are responsible for preparing the half-yearly financial report
using accounting policies consistent with applicable law and UK Accounting
Standards.
The Directors confirm that to the best of their knowledge:
- the condensed set of financial statements contained within the half-yearly
financial report have been prepared in accordance with the Accounting Standards
Board's Statement "Half-Yearly Financial Report";
- the interim management report includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8 of the FSA's Disclosure and Transparency
rules; and
- the interim management report includes a fair review of the information
required on related party transactions.
Signed on behalf of the Board of Directors.
Michael Mason
Chairman
10 January 2008
Share Class Switching Details
Shares are convertible at the option of holders into any other class of share
on 1 May 2008 and every 6 months thereafter. Notice from a shareholder to
convert any class of share on any conversion date is required up to a maximum
of 10 business days prior to the relevant conversion date, save in the case of
the conversion of Hedge Fund shares in relation to which notice to convert must
be given approximately 3 months prior to the relevant conversion date because
of the less liquid nature of the underlying hedge fund investments. Forms for
conversion will be despatched to shareholders for completion in time for each
respective share class conversion directly from the Company's Registrars.
Conversion from one class of share into another will be on the basis of a ratio
derived from the prevailing underlying net asset value of each class of
relevant share, calculated shortly before the date of conversion.
The Directors have been advised that conversion of one class of share into
another will not be treated as a disposal for the purposes of UK capital gains
tax.
website address: www.invescoperpetual.co.uk/investmenttrusts
Contacts
Karina Bryant 020 7065 3644
Angus Pottinger 020 7065 3714
END
Inv.Perp.Sel Hd (LSE:IVPH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Inv.Perp.Sel Hd (LSE:IVPH)
Historical Stock Chart
From Jul 2023 to Jul 2024
