Invesco Perpetual Children`s fund Brochure

Invesco Perpetual Children’s Fund
Who knows what our children will want to be when
they grow up?
Will they want to go to university? Get married? Buy a
house perhaps? One thing’s for sure; at some point in
their future they’ll need a financial boost, and they’ll be
grateful if it comes from someone who has always had
their best interests at heart. At Invesco Perpetual we’ve
created a fund especially for those who want to give
the children in their lives a helping hand financially, that
uses hand-picked UK stock market investments with the
potential to grow long term rewards.
The Invesco Perpetual Children’s Fund aims to achieve
longer-term capital growth through a portfolio of
investments in UK companies.
Please note that the Invesco Perpetual Children’s Fund is
not a trust arrangement. Unless and until the investment
is re-registered into your child’s name (once they are over
the age of 18) any tax liabilities incurred remain with you
and the investment would remain within your estate for
inheritance tax purposes.
The basics
The Invesco Perpetual Children’s Fund
is what is known as an ICVC. An ICVC,
or ‘Investment Company with Variable
Capital’, is a collective investment scheme
similar to a unit trust, which allows you
to pool your money with other investors.
Depending on the aim of the fund you
choose, this pool of money is then invested
in shares, bonds or other securities by
a professional fund manager. When
you invest in the Children’s Fund, your
investment will be used to buy shares in
companies listed on the UK stock exchange.
At Invesco Perpetual, our fund managers
are experienced at finding investment
opportunities, whatever the market
conditions. Their management approach is
truly active, building investment portfolios
based on rigorous research, to identify
companies which they believe are most
likely to provide the strongest returns.
Please note, as with any stock market
investment, 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.
If you want to invest a
lump sum, you can start
with as little as £50 or
invest monthly from
as little as £20.
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Invesco Perpetual Children’s Fund
Investment options to suit you
You can invest in the Invesco Perpetual Children’s Fund
in the way that best suits you – with a one-off lump sum
or with regular contributions.
If you want to invest a lump sum, you can start with as
little as £50. But if you’d prefer a regular arrangement,
you can invest monthly from as little as £20, or annually
from as little as £50 – ideal for Christmas and birthdays!
Whatever you decide, you can top up the fund at any time
with a lump sum of £25 or more.
Who does the investment belong to?
The Invesco Perpetual Children’s Fund is only available to
applicants aged 18 or over so you’ll have to buy shares in
your name and the investment will therefore belong to you.
However, the account can be set up to reflect the name
of the child that you intend to transfer the investment to
once they reach 18 years of age. In order to transfer the
investment you will need to complete a ‘Stock transfer
form’ and an ‘ICVC application form’ which are available
on our website www.invescoperpetual.co.uk. In the
meantime, you will receive 6-monthly statements and
also birthday cards to send on to the designated child
until they are 11 years old.
Please note that there are no tax benefits to adding a
designation to an account. Please refer to the section
headed ‘General information and tax’ for further information.
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Invesco Perpetual Children’s Fund
Making an investment
Please read the relevant, most up to date
share class-specific Key Investor Information
Document, along with the Supplementary
Information Document, which detail relevant
features of the fund. The latest versions
of these documents are available from our
website or by contacting us. Please also
read the investment risks, and the additional
information on the following page of this
brochure. When you are happy with the
investment you are making, fill in the Invesco
Perpetual Children’s Fund application form,
and return it when you’re ready.
If at any point you would like an up-to-date
fund strategy or performance information,
this is available on our website
www.invescoperpetual.co.uk, or by
calling us on 0800 085 8677.
Telephone calls may be recorded.
If you’re planning to make a regular monthly/
annual investment, you’ll need to complete
the relevant section of the form and send us
a cheque (payable to Invesco Fund Managers
Limited) to cover the first month’s/annual
contribution. If you’re investing a one-off
lump sum, please enclose your cheque.
If there is anything you are unsure of, please
speak to your financial adviser or call us.
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Invesco Perpetual Children’s Fund
Investment risks
The value of investments and any income
will fluctuate (this may partly be the result
of exchange rate fluctuations) and you may
not get back the full amount invested. Past
performance is not a guide to future returns.
The Invesco Perpetual Children’s Fund may
use derivatives (complex instruments) in
an attempt to reduce the overall risk of 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.
Current tax levels and reliefs may change.
Depending on individual circumstances, this
may affect investment returns.
This brochure should be read in
conjunction with the most up to date
relevant fund and share class-specific Key
Investor Information Documents and the
Supplementary Information Document.
These documents are available from our
website or by contacting us.
General information and tax
The following information is based upon our
understanding of tax law and practice and
is for guidance only. Whilst we aim to be
helpful in providing this guidance, it is not
tax advice and we take no responsibility
for any reliance that you may place on
such guidance. If you are in any doubt you
should discuss your personal situation with
a professional adviser or HM Revenue &
Customs (HMRC).
From 6 April 2016 no tax is deducted from
income generated by the Invesco Perpetual
Children’s fund as the fund generates a type
of income known as dividend income. A
dividend allowance is available to individuals
in respect of dividend income. In any tax
year, individuals will not have to pay tax on
their dividend income, up to the value of that
dividend allowance. Any dividends in excess
of the dividend allowance may be subject to
tax, depending on whether the individual has
already used their personal allowance and
which tax band applies to them (basic, higher
or additional).
In the case of the Invesco Perpetual
Children’s Fund, all income is automatically
accumulated within the fund and a tax
voucher is provided. This will be sent to the
registered adult holder once a year with the
Short Reports for the fund.
If you are unsure how this could affect you,
please discuss your personal situation with
a professional adviser or HM Revenue &
Customs (HMRC).
Registration
The Invesco Perpetual’s Children’s Fund is
only available to applicants aged 18 and
over, so the investment of shares into the
Invesco Perpetual Children’s Fund will be in
your name and will belong to you. However,
the account can be designated to reflect the
name of the child that you wish to transfer
the investment to once they reach 18.
Please note, this is simply a designation,
you may amend the designation to another
person or keep the investment in your name
up until your instructed transfer takes place.
A ‘designated account’ is set up in the
same way as an undesignated account, but
enables you to identify which investments
you have made specifically for the child.
The designation is revocable so, as with any
investment in our fund range, you can sell
part or all of your investment at any time.
You can invest with a one-off lump sum,
from as little as £50 a year, or with regular
contributions, from £20 a month.
Tax considerations
There are no tax benefits to adding a
designation to an account as the investment
remains legally yours. This means that any
income tax and capital gains tax liabilities
incurred by profits on the investment
will remain with you, as the investor. For
inheritance tax purposes, the investment
remains inside your estate. However, once
the child turns 18, you can re-register the
account in their name, thus transferring the
ownership of the shares and the associated
tax responsibilities from you to them. You
will need to complete a stock transfer form
to effect this transfer.
It is important to note that designating an
account in a child’s name does not create
a trust for the child. The Children’s Fund is
not set up as a trust. You will be the owner
of the designated account and, being the
investor, will be liable to pay tax on the
income and capital gains earned subject
to your personal allowances including your
dividend allowance.
Transfer when child reaches maturity
Once the child reaches 18 years of age, you
can transfer the holding into their name.
This will not be carried out automatically.
Therefore, you will need to send us a
completed ‘Stock transfer form’ and an ‘ICVC
application form’ before we can proceed
with the transfer. Forms are available from
our website www.invescoperpetual.co.uk.
Once the investment is transferred, the
transferee will have full ownership and
control of the holding.
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Invesco Perpetual Children’s Fund
Buying and selling shares
The minimum monthly contribution is £20.
The minimum annual contribution is £50.
The minimum lump sum investment is £50.
You can add to the account at any time by
a minimum of £25. If you wish to make
a regular monthly or annual investment,
please send us a cheque (payable to
Invesco Fund Managers Limited) with your
application form to cover the first month’s
or annual contribution. Shares in the
Invesco Perpetual Children’s Fund will be
purchased at the next valuation point after
receipt of your instructions.
Regular contributions can be amended
at any stage, provided that your monthly
contribution does not fall below £20. You
may stop your regular contributions at any
time without penalty, but you must ensure
that at least £50 remains in your account
otherwise we reserve the right to sell the
remaining shares and pay the proceeds to
you. Any instructions to amend or stop your
Direct Debit must be received no later than
5 business days before the collection date.
For lump sum savers, once we receive and
process your application, a contract note
will be dispatched. If you wish to make
regular monthly or annual payments,
please complete the Direct Debit mandate
on the application form. No certificates will
be issued for regular savings plans but you
will be sent a statement every six months.
To sell all or part of your Invesco Perpetual
holding, simply write to us with your
instructions. The sales proceeds will either be:
paid to you by cheque (which will be sent to
your registered address); or paid directly into
your bank account (where we have received
your instructions to do so and subject to
satisfactory verification of your bank details),
normally on the third business day after we
carry out your instructions. Your holding will
be sold at the first available valuation after
receipt of your written instructions.
The annual distribution date is 28 February
in respect of the period ending 31 December.
However, please note that income is
automatically reinvested to increase the
share value.
Contact us
Client Services
Telephone 0800 085 8677
www.invescoperpetual.co.uk
Telephone calls may be recorded.
Important information
Where Invesco Perpetual has expressed views and opinions, these may change.
Administration centre address:
Invesco Perpetual, PO Box 11150, Chelmsford, CM99 2DL
Invesco Perpetual is a business name of Invesco Fund Managers Limited
Registered in England and Wales No. 898166
Registered address: Invesco Fund Managers Limited, Perpetual Park
Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH
Authorised and regulated by the Financial Conduct Authority
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