Invesco Perp Sel Tst Statement re Managed Liquidity Portfolio

 
TIDMIVPM 
 
Changes to Managed Liquidity Portfolio 
 
The existing investment policy and investments of the Managed Liquidity 
Portfolio would require it to be authorised as a money market fund under a new 
EU Money Fund Regulation. This would impose quite onerous requirements and 
restrictions on the management and administration of the Portfolio and 
consequently the Board has decided that it would be in investors' best 
interests if changes were made to avoid this outcome whilst maintaining 
characteristics in line with the original intent of the Portfolio. Accordingly, 
the Portfolio's Investment Policy has been amended. The Company's corporate 
broker, Canaccord Genuity, has confirmed that, in its view, these changes are 
not material and consequently do not require FCA or shareholder approval. 
 
The full new investment policy, highlighting the changes, is set out below: 
 
Investment Policy and Risk 
 
The Managed Liquidity Portfolio invests mainly in a range of sterling-based or 
related high quality debt securities and similar [DEL:money market:DEL] fund 
assets (which may include transferable securities, money market instruments, 
warrants, collective investment schemes and deposits), either directly or 
indirectly through [DEL:money market:DEL] authorised funds investing in such 
instruments, including funds managed by Invesco. 
 
The Managed Liquidity Portfolio generally invests in [DEL:money market:DEL] 
funds authorised as UCITS schemes (Undertakings for Collective Investments in 
Transferable Securities, being open ended retail investment funds in the EU), 
which are required under governing regulations to provide a prudent spread of 
risk. 
 
In the event that the Managed Liquidity Portfolio is invested directly in 
securities and instruments, the Manager will observe investment restrictions 
and risk diversification policies that are consistent with UCITS regulations. 
 
Investment Limits 
 
The Board has prescribed limits on the investment policy of the Managed 
Liquidity Portfolio, which include the following: 
 
-   no more than 10% of the gross assets of the Managed Liquidity Portfolio may 
be held in a single investment, other than authorised [DEL:money market:DEL] 
funds or high quality sovereign debt securities; and 
 
-   no more than 5% of the gross assets of the Managed Liquidity Portfolio may 
be held in unquoted investments, other than authorised [DEL:money market:DEL] 
funds. 
 
Investors should note that the Managed Liquidity Shares are not designed to 
replicate the returns or other characteristics of a bank or building society 
deposit or money market fund. In particular, the Portfolio will typically 
contain some assets with a greater residual maturity, and as a whole will have 
greater weighted average maturity, than is prescribed by regulation governing 
money market funds. 
 
Further, the Portfolio's principal investment has been the Invesco Money Fund 
(UK). This Fund is a money market fund under the new regulation and as such can 
no longer constitute a significant proportion of the Managed Liquidity 
portfolio. Instead most of the Portfolio's assets will be invested in the PIMCO 
Sterling Short Maturity Source UCITS ETF, which is not subject to the 
regulation but has risk characteristics appropriate to the Portfolio. The ETF 
is managed by PIMCO and Invesco acts as co-promoter. In consequence of these 
changes Stuart Edwards has ceased to be the designated portfolio manager. 
 
18 January 2019 
 
Contact:        Angus Pottinger        020 3753 1000 
 
 
 
END 
 

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January 18, 2019 05:12 ET (10:12 GMT)