The Olympics in London, currently directs the attention in a positive way to the UK, where recent economic data had prepared, however, little reason to rejoice. Sun confirm the final numbers for the development of the UK gross domestic product (GDP) that Britain has slipped deeper into recession. For the second quarter of 2012 had the Office for National Statistics (ONS) reported a decline in economic output of EUR -0.7 percent reported in the quarterly comparison - much weaker numbers than they had been expected in the consensus estimate of -0.2 percent. This lists the British economy is not only the third negative quarter in a row, but also the most violent contraction since early 2009.
The worsening recession in Britain has benefited from the weak performance of the UK service sector, which accounts for roughly three-quarters of the local economy. It shrank by 0.1 percent the previous quarter. At the same time, industrial production went down by -1.4 percent, down not as strong as for over three years. At worst it looked in the British construction sector, which was recorded due to bad weather, a decline of -5.2 percent on a quarterly basis.
Is it given the current economic climate and positive messages that counter-cyclical investors to start to move in UK equities? After all, the International Monetary Fund (IMF) for the UK in 2012, continued overall low economic growth rate of +0.2 percent. At the same time for the third quarter of positive growth forecasts,
also favored by pulses of the Olympic Games in London. This is the time to invest in a wide dispersive UK equity funds such as Invesco UK Equity Fund A (WKN 791 605 ISIN IE0030382794) is not a bad choice. Of the 03 August fund launched in 2001 has recently shown very successfully is to achieve in spite of continued weak economic environment in the UK with a careful stock-picking good performance results. In the current year, fund manager, Martin Walker, who has managed the Fund since June 2008, an increase of +12.28 percent to generate €. Invesco UK Equity Fund has as its base currency, the British pound (GBP) and currently has a fund volume of € 130.6 million equivalent. The Fund will focus on high-class company with long term growth potential and favors the British consumer sector. The benchmark uses the Invesco Funds Morningstar GIF OS UK Large-Cap Blend Equity Index. Compared to this, he had in the stock ahead of 2011, as a return of the fund from -0.87 percent to GBP a performance of the index was compared with -5.75 percent. As fall from the further performance benefits?
Development Fund. Clearly.
For our analysis, we have independent fund SJB faced the Invesco UK Equity Fund The FTSE 100 benchmark index, the main British index for defaults. In the recent three-year period, the Invesco Fund returned +12.33 percent pa can achieve in € (as of 07/25/2012). A compelling value for the focus on investing in UK funds, so that the performance of the FTSE 100 by +9.76 per cent pa surpasses in €. Looking at the short-term performance of actively managed funds can increase its yield advantage over the passive benchmark yet: over a year generated by the UK-Fund returned +10.37 percent in euros, while the "footsie" with only an increase of + 4.39 percent was able to come. Could also be on the chart image shows how the managed release of Martin Walker equity funds in recent months by the Reference Index and expand its performance lead. Here the focus is on consumer-related titles affected obviously positive. Thus, the Invesco fund is the clear winner from the short-and medium-yield forth comparison. What are the volatility of the numbers waiting for funds to achieve its yield premium?
The good news from the perspective of the Invesco UK Equity Fund: The UK fund earns its outperformance over the benchmark at a consistently lower volatility. In the most recent three-year period of the Invesco fund has annualized exhibit a variation of 16.65 percent. Thus, the "volatility" of the fund is about one percent lower than that of the FTSE 100, which puts in the same period a variation of inclination of 17.76 percent on the day. The scenario of a comparison with the reference index less volatile fund will also look at the short horizon. More than a year, the volatility of the Invesco fund is 21.03 percent compared to 22.27 percent for the benchmark. The bottom line: Despite a lower risk appetite can fund managers Walker with his selection of British stocks in both periods studied beat the broad market, as represented in the FTSE 100. A mature performance and quality of evidence for active fund management!
Fund strategy. Decrypted.
Invesco UK Equity Fund is to achieve long-term capital appreciation up the cause by investing primarily in equities of companies domiciled in the UK. Martin Walker, fund manager manages the fund from the British and Henley, the portfolio as part of its goals proactively. In the selection of the shares he is not constrained by the track and sector allocation of the benchmark. Walker specializes in first-class British company with long term growth potential and sees its funds irrespective of the increase due to the debt crisis, volatility in equity markets is well positioned to participate in the upside potential in the future auftuenden. In his new purchases, he preferred shares with a recognizable potential for improving profitability, and companies whose success is closely linked to the development of the UK equity market - because the outlook is positive.
The sector focus of the portfolio of the Invesco UK Equity Fund is made up of British consumer titles, which account for 18.3 percent of fund assets. With 17.1 percent share of the total allocation of telecommunications stocks are also strongly represented. The third largest sector within the portfolio are financial institutions with 17.0 percent dar. involved above-average rate of the Invesco fund is also in the field of health care (14.9 percent) and industrials (14.5 percent). Rounding out the portfolio of positions in the energy sector (9.5 percent) in consumer goods (5.6 percent) and individual utility stocks (0.9 percent of assets under management). The cash ratio of the Invesco fund is the end of June was 1.4 percent.
Among the top 10 positions in the UK funds, the telecoms giant British Telecom with 6.9 percent portfolio share in the first place. The second largest single item of the Fund is the pharmaceutical company Glaxo Smith Kline (5.6 percent), representing together with AstraZeneca, the Health Care in the top 10. The energy stocks, in which the Fund has committed most are 5.5 percent and BP with British Gas at 3.9 percent share of assets under management. The major UK banks are examined in light of the financial crisis in the top 10 in vain, from the financial sector can be found here, only the insurer Legal & General. Britain's industrial sector is represented by the arms company BAE Systems, as well as the provider of sanitary technology Rentokil Initial. From the field of consumer goods it is the tobacco company Imperial Tobacco with 3.4 percent share portfolio provides one of the ten largest individual titles. Overall, the portfolio of the fund over 51 individual values is very broad.
SJB conclusion. Invesco UK Equity Fund.
Although given the current economic figures fundamental economic problems in Britain are not to be denied, there may be counter-cyclical investor position with a skilful use of UK equities before the next upturn. To this end, with an attractive risk-return profile aufwartende Invesco UK Equity Fund is ideally suited to the combines short-and medium-term outperformance over the FTSE 100 with a lower volatility.
