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. 02 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. 03 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. 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. 04 Invesco Perpetual Children s Fund
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. 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. 05 Invesco Perpetual Children s Fund
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 UK1326/60615/PDF/310316