REG-Invesco Perp Sel Tst: Statement re Managed Liquidity Portfolio

Invesco Select TrustAnnouncement

18/01/2019 10:15

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 fund assets (which may
include transferable securities, money market instruments, warrants,
collective investment schemes and deposits), either directly or indirectly
through authorised funds investing in such instruments, including funds
managed by Invesco.

The Managed Liquidity Portfolio generally invests in 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 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 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



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