Invesco UK Opportunities Fund (UK)
An active UK equity fund, capturing opportunities in undervalued areas of the market.
Invesco UK Opportunities Fund (UK)
The UK market offers high quality, cash-generative businesses – many of which are global leaders in their own field. This fund aims to capture undervalued opportunities across the market.
At a glance
The value offered by the UK market creates a real and present opportunity for long-term investors. This fund focuses on valuation at the point of purchase and recognises that many of the best ideas are non-consensus.
Why consider this fund?
The UK market offers high quality, cash-generative businesses – many of which are global leaders in their own field. We believe that many of these are trading at attractive valuations.
Our assessment of opportunity focuses on a company’s valuation. Every stock has to have a compelling valuation case before being included in the portfolio. We look at valuation through four lenses:
- Valuation relative to history.
- Valuation relative to peers, both domestic and international.
- Intrinsic valuation (determined by looking at metrics like discounted cash flow, price to earnings ratio, price to book ratio, return on equity and dividend yield).
- Special situations (i.e. when a special circumstance or opportunity causes us to believe that there is further embedded value).
The next decade is going to look quite different to the one we have just lived through. On average, we believe it will be characterised by higher inflation and a higher cost of capital. There will be periods of volatility. However, historically, these sorts of environments have favoured ‘value’ over ‘growth’.
The UK equity market is more ‘value’ oriented than its international peers. The active positioning of the fund accentuates this value bias.
Launched in the late 1980s, the fund has a long track record and has navigated a broad range of market environments. It has been consistently managed by Martin Walker since 2008 as a large cap, scalable, core value fund. Martin is a first-rate investor with over 25 years of industry experience. He is supported by a team of 8 investment professionals.
Strategy facts
High conviction portfolio
This is a ‘best ideas’ portfolio of around 35-45 stocks. It is not constrained by a benchmark and invests only in those opportunities that look most compelling.
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Valuation-driven approach
We seek out companies that are trading at attractive valuations. This is fundamental to our assessment of opportunity at every stage of the process.
Strong engagement
Our UK equity professionals carry out around 500 company meetings per year. They actively exercise their voting rights and voted 100% of eligible ballots in 2021.
Click below to visit the product page, where you can see how the fund has performed over time. You’ll also find factsheets and performance commentary there.
The UK Equities team
The UK Equities team forms part of the Henley based investment teams. It has a rich heritage spanning over four decades and continues to be a leading investor in UK publicly listed companies. Martin Walker has been a member of the team since 1999. He has been Head of UK Equities since 2020.
Click below to learn more and to discover additional UK equity products.
Latest insights
Frequently asked questions
The UK market offers access to a wide range of world class, cash-generative businesses.
Furthermore, UK equities are currently undervalued as an asset class, both relative to their own history and relative to international peers. They have endured headwinds for a number of years, firstly with Brexit, then the pandemic, and latterly risk aversion across Europe as a result of war in Ukraine. However, the UK market is now seeing significant interest from both domestic and overseas asset allocators as they recognise the valuation opportunity this has created.
The UK market derives about 27% of its revenues from the UK economy. In other words, it is a highly international equity market. This means that it is not as exposed to local economic headwinds as some other markets.
Furthermore, by virtue of the translation effect, weakness in sterling (especially relative to the US dollar and the euro) can offer a boost to UK equity market earnings. Bad news for the UK economy and sterling can be good news for UK equities, especially those that export goods and services or have substantial overseas operations.
ESG* is fully integrated into all stages of our investment process. We recognise the importance of ESG factors as a source of opportunity for companies, as well as a potential source of risk. Furthermore, we believe in the importance of engagement and dialogue in bringing about positive change and generating better investment outcomes.
View Invesco’s full range of UK equity products, including our actively managed mutual funds and exchange traded funds (ETFs). Details on how to invest with us can be found here. Alternatively, complete the below form to let us know how we can help.
A real and present opportunity
Today, the value offered by the UK market creates an attractive opportunity for long-term investors. This fund focuses on valuation at the point of purchase and recognises that many of the best ideas are non-consensus.
High conviction portfolio
This is a ‘best ideas’ portfolio of around 40-50 stocks. It is not constrained by a benchmark and invests only in those opportunities that look most compelling.
Valuation-driven approach
We seek out companies that are trading at attractive valuations. This is fundamental to our assessment of opportunity at every stage of the process.
Strong engagement
Our UK equity professionals carry out 300+ company meetings per year. They actively exercise their voting rights and voted 100% of eligible ballots in 2024.
Why this fund?
Our assessment of opportunity focuses on a company’s valuation. Every stock has to have a compelling valuation case before being included in the portfolio. We look at valuation through four lenses:
- Valuation relative to history
- Valuation relative to peers
- Intrinsic valuation
- Special situations
Access the Invesco UK Opportunities Fund (UK) product page to view KIIDs and factsheets.
The next decade is going to look quite different to the one we have just lived through. On average, we believe it will be characterised by higher inflation and a higher cost of capital. There will be periods of volatility. However, historically, these sorts of environments have favoured ‘value’ over ‘growth’.
The UK equity market is more ‘value’ oriented than its international peers. The active positioning of the fund accentuates this value bias.
Martin Walker has 27 years of industry experience, and has managed this fund as a large cap, scalable, core value fund since 2008. Bethany Shard was appointed Deputy Manager of the fund in April 2023.
A real and present opportunity
Today, the value offered by the UK market creates an attractive opportunity for long-term investors. This fund focuses on valuation at the point of purchase and recognises that many of the best ideas are non-consensus.
High conviction portfolio
This is a ‘best ideas’ portfolio of around 40-50 stocks. It is not constrained by a benchmark and invests only in those opportunities that look most compelling.
Valuation-driven approach
We seek out companies that are trading at attractive valuations. This is fundamental to our assessment of opportunity at every stage of the process.
Strong engagement
Our UK equity professionals carry out 300+ company meetings per year. They actively exercise their voting rights and voted 100% of eligible ballots in 2024.
Why this fund?
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Capture valuation opportunity in the UK market
Our assessment of opportunity focuses on a company’s valuation. Every stock has to have a compelling valuation case before being included in the portfolio. We look at valuation through four lenses:
- Valuation relative to history
- Valuation relative to peers
- Intrinsic valuation
- Special situations
-
Navigate a changing macro environment
The next decade is going to look quite different to the one we have just lived through. On average, we believe it will be characterised by higher inflation and a higher cost of capital. There will be periods of volatility. However, historically, these sorts of environments have favoured ‘value’ over ‘growth’.
The UK equity market is more ‘value’ oriented than its international peers. The active positioning of the fund accentuates this value bias.
-
Draw on decades of expertise
Martin Walker has 27 years of industry experience, and has managed this fund as a large cap, scalable, core value fund since 2008. Bethany Shard was appointed Deputy Manager of the fund in April 2023.
Fund managers
Martin Walker has been a fund manager since 1999 and Bethany Shard has been a deputy fund manager since 2023.
Valuation at the point of purchase is key. The best ideas are non-consensus.
Martin Walker
Fund Manager
Frequently asked questions
The UK market offers access to a wide range of world class, cash-generative businesses. Furthermore, UK equities are currently undervalued as an asset class relative to international peers. They have endured headwinds for a number of years, firstly with Brexit, then the pandemic, and more recently from risk aversion across Europe as a result of war in Ukraine and conflict in the Middle East. The FTSE All-share index offers low correlation to US markets, but still has scale, breadth, and depth of companies. It offers something that is as different as it is attractive. And both these qualities are important.
The UK market derives about 25% of its revenues from the UK economy. In other words, it is a highly international equity market. This means that it is not as exposed to local economic headwinds as some other markets.
Furthermore, by virtue of the translation effect, weakness in sterling (especially relative to the US dollar and the euro) can offer a boost to UK equity market earnings. Bad news for the UK economy and sterling can be good news for UK equities, especially those that export goods and services or have substantial overseas operations.
ESG is integrated into all stages of our investment process. We recognise the importance of ESG factors as a source of opportunity for companies, as well as a potential source of risk. Furthermore, we believe in the importance of engagement and dialogue in bringing about positive change and generating better investment outcomes.
