Invesco Summit Responsible Range
Transcript: Transcript
I'm David and I'm the lead portfolio manager for the Summit Responsible Range. My main role is to oversee the summit responsible funds, investment strategy. And ultimately, I guess my job is to build well diversified portfolios that cater to a variety of different risk appetites.
When we think about why we might invest in the first place, investing really means putting your money to work for you. So investors really would be buying things like shares or bonds, things that have the potential to deliver higher returns than just by saving alone. And in that way, they can build their wealth over time, and it could help them reach their long term financial goals.
Obviously, it's important to understand that all investments carry risk. You know, our industry, we're saying that all the time the value can go down as well as up. And you may, of course, get back less than you originally invested. But for me, the power of investment is one of the most wonderful things that we can have, one of the most wonderful tools we can have at our disposal.
For me, the key is that the funds are professionally managedby our team here at Invesco. And as you know, Invesco is one of the largest asset managers in the world. The funds themselves are globally diversified. They spread their investments across a number of countries, around 60 and over 2000 underlying individual investments. And what that means in practice is
much less reliance on any single market or company to have to perform well for your investment to do well. I think that's really, really important to have that true diversification. And with relatively low annual fees, more of the money that investors put in stays invested in the markets.
There are five globally diversified funds in the range, each of which targets a different risk level, offering something for those investors who prefer a more cautious approach, but also for those investors who are comfortable taking on a bit more risk. The funds themselves are designed for a medium to long term
horizon, so it's important that investors think about their own individual investment goals and how much risk they're comfortable taking on before they actually go onto invest, and whether they're taking their first steps in the investment journey or they're more seasoned investors.
I think the summit responsible range is well worth a look.
Which fund in the range could be right for you?
The Invesco Summit Responsible Range offers a choice of pre-built, globally diversified funds, each designed with different levels of volatility. Volatility is a measure of the size of short-term changes, in the value of an investment. The value of investments can go down as well as up.
So, whether you prefer a more cautious approach or are comfortable taking on more risk, and experiencing more volatility, we believe there’s an option for you. These funds are designed for a medium to long-term horizon. Remember you may get back less than what you invested.
Invesco Summit Responsible Range
Each of our five funds is a carefully balanced portfolio invested across equity (stocks) and fixed income (bond) asset classes to meet the different risk targets, ranging from 15% to 105% of global equity volatility. Each fund may also invest in other types of assets to help manage risk and enhance diversification.
Invesco Summit Responsible 1 Fund (UK)
This fund has the lowest volatility target, it is expected to hold more bonds and fewer equities, also known as stocks. Which generally means it may experience less volatility and therefore smaller changes in value, compared to the rest of the range. Bonds are typically steadier because they issue regular payments and are less sensitive to market changes than equities (stocks). Consequently, this fund will have a lower return potential and the least volatility in the range.
Invesco Summit Responsible 3 Fund (UK)
This fund has a higher volatility target than fund 1 and fund 2, therefore it offers the potential for more growth. However, equities can fluctuate more in value than bonds, so this fund is designed to experience more volatility in the short term than funds 1 and 2.
Invesco Summit Responsible 5 Fund (UK)
This fund has the highest volatility target in the range, meaning it holds the largest proportion of equities (stocks) and fewer bonds. This makes it more likely to deliver higher growth over the long term. However, the fund is designed to be more volatile and as a result may experience greater fluctuations in value in the short-term compared to the other funds in the range.
How to invest
We’ve partnered with Zopa, one of the UK’s leading digital banks trusted by over 1.5 million people. Through the Zopa app, you will be able to invest in two funds from the Invesco Summit Responsible Range:
- Invesco Summit Responsible 3 Fund (UK) – also known as Balanced on the Zopa app
- Invesco Summit Responsible 5 Fund (UK) – also known as Bold on the Zopa app
(Please note: only these two funds from the range are available via Zopa.)
If you prefer, you can also invest in the full range of Invesco Summit Responsible funds through a variety of investment platforms. General information about investing and details for making investments into other Invesco product ranges, can be found here.
If you’re unfamiliar with investing you should seek financial advice to help decide if investing is for you. You can find a financial adviser at www.unbiased.co.uk.
