IVPG Invesco Select Trust Plc

 
TIDMIVPU TIDMIVPM TIDMIVPG TIDMIVPB 
 
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED IN IT ARE NOT FOR RELEASE, 
PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR 
INTO, THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR THE REPUBLIC OF SOUTH 
AFRICA OR ANY JURISDICTION FOR WHICH THE SAME COULD BE UNLAWFUL. 
 
The information communicated in this announcement is deemed to constitute inside 
information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 
which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, 
as amended (the Market Abuse Regulation). The person responsible for arranging 
for the release of this announcement on behalf of the Company is Invesco Asset 
Management Limited acting as company secretary. Upon the publication of this 
announcement, this information is considered to be in the public domain. 
 
Legal Entity Identifier: 549300JZQ39WJPD7U596 
 
14 December 2023 
 
Invesco Select Trust Plc 
 
Restructuring Proposals 
 
The Board of Invesco Select Trust Plc (the "Company") has undertaken a review of 
the Company and its strategy, with the objective of broadening the appeal of the 
Company as well as improving liquidity and narrowing the discount at which the 
Company's shares trade. Consequently, the Board intends to put forward proposals 
to the Company's shareholders ("Shareholders") to simplify the Company's 
corporate structure and to introduce certain features that it believes will 
appeal to a broad investor base (the "Proposals"). 
 
Background 
 
The Company was launched in 2006 with a multi-share class structure to enable 
Shareholders to invest in a wide array of asset classes and to rebalance their 
portfolio by allowing them to convert, tax-efficiently between share classes. 
However, in recent years, the Company has seen a limited take-up of the 
conversion opportunities between the existing four share classes: Global Equity 
Income ("Global Share Class"); UK Equity Income ("UK Share Class"); Balanced 
Risk Allocation ("Balanced Risk Class"); and Managed Liquidity ("Managed 
Liquidity Class"). The Balanced Risk Class and the Managed Liquidity Class 
(together, the "Smaller Share Classes") now amount to, in aggregate, only circa 
3.6 per cent. of the net assets of the Company as at 12 December 2023. Further, 
with demand from investors for larger, more liquid investment vehicles, the 
Board believes it could be increasingly challenging to market separately the 
Global Share Class and the UK Share Class in their current form, with the 
structure potentially presenting an additional hurdle for those looking to 
invest. 
 
The Proposals 
 
The Board believes that the Global universe offers the broadest set of 
investment opportunities for equity investors whilst also providing 
diversification benefits for UK investors. Additionally, the Board has 
confidence in its award-winning Global Equity Income fund manager, Stephen 
Anness, to continue to seek out investment opportunities for the ongoing benefit 
of shareholders. The Board believes his approach to be rigorous, differentiated 
and balanced. Under Stephen's stewardship the Global Equity Income portfolio has 
delivered strong, sector-leading NAV total return performance: 
 
+--------+---------------+-----------------+--------------+------------------+ 
|        |Global Share   |MSCI World Index |Outperformance|AIC Global Equity | 
|        |Class NAV Total|£GBP Total Return|              |Income Sector rank| 
|        |Return         |                 |              |                  | 
+--------+---------------+-----------------+--------------+------------------+ 
|One year|16.8%          |6.3%             |10.5%         |1st               | 
|to 30   |               |                 |              |                  | 
|November|               |                 |              |                  | 
|2023    |               |                 |              |                  | 
+--------+---------------+-----------------+--------------+------------------+ 
|Three   |52.2%          |29.3%            |22.9%         |1st               | 
|years to|               |                 |              |                  | 
|30      |               |                 |              |                  | 
|November|               |                 |              |                  | 
|2023    |               |                 |              |                  | 
+--------+---------------+-----------------+--------------+------------------+ 
 
Source: LSEG Data Analytics / AIC 
 
Accordingly, the Board has concluded that it would be in the best interests of 
shareholders as a whole to consolidate the UK Share Class and the Smaller Share 
Classes into the Global Share Class (the "Consolidation"). As part of the 
Consolidation the Board will undertake a 15 per cent. tender offer on the UK 
Share Class. Additionally, given the Smaller Share Classes offer significantly 
differentiated risk profiles and asset exposures to the Global Share Class, the 
Board will provide the Smaller Share Classes with the opportunity for a full 
cash exit through a tender offer. The tender offer prices will be based on the 
NAVs of the respective share class less the costs of the Proposals less a 2 per 
cent. discount. 
 
The Consolidation would result in the Company having net assets of approximately 
£182 million[1]. As compared with any of the Company's current share classes 
individually, the Board believes this should increase the appeal to investors 
and would be expected to have a beneficial impact on liquidity, and potentially 
on the discount of the enlarged Global Share Class. 
 
The investment objective and investment policy of the Global Share Class will be 
retained, reflecting the Board's confidence in Stephen's investment process as 
well as the strength and depth of his team. 
 
Dividend enhancement 
 
In recognition of the increasing importance of dividends to Shareholders in the 
current economic environment, the Board intends, subject to shareholder approval 
of the Proposals, to enhance the current dividend policy of the Global Share 
Class which consists of three equal interim dividends and a `wrap-up' fourth 
interim dividend. The new policy will involve paying at least 1 per cent. of cum 
-income net asset value ("NAV"), paid quarterly, calculated on the unaudited 
year end NAV. The intention would be that these dividends would be paid from the 
Company's revenues and capital reserves as required. The Board believes that 
this should provide both an enhanced dividend compared to current levels on the 
Global Share Class and, once the relevant NAV is known, a smoother, predictable 
income stream to Shareholders. 
 
Continuation votes and discount management 
 
If the Proposals are approved, the Board intends to put forward a vote at the 
Company's AGM in 2026 for the continuation of the Company (the "2026 
Continuation Vote"). If the 2026 Continuation Vote is passed the Board will put 
forward a continuation vote at the AGM in 2031 and, if passed, at each fifth AGM 
thereafter. 
 
The Board also intends to introduce a discount control policy in the enlarged 
Global Share Class which will seek to maintain the discount at less than 10 per 
cent., in normal market conditions. 
 
Next steps 
 
The Proposals will require the approval of Shareholders. The Board has received 
indications of support for the Proposals from those Shareholders it was able to 
consult through market soundings. The Company currently anticipates being able 
to publish a circular and notice of meeting(s) in connection with the Proposals 
in Q1 2024. 
 
In order to facilitate the Proposals, the Board has determined to postpone the 
conversion that would have taken place in February 2024. 
 
For further information please contact: 
 
Chair                                    +44 (0)20 7543 3559 
 
Victoria Muir (via James Poole, Invesco 
Asset Management Limited, company 
secretary) 
 
Invesco Fund Managers Limited            +44 (0)20 7543 3500 
Will Ellis 
 
John Armstrong-Denby 
 
Winterflood Securities Limited           +44 (0) 20 3100 0000 
Neil Morgan 
Darren Willis 
 
[1] Based on the NAV as at 12 December 2023 and an assumption that both of the 
Smaller Share Classes and the UK Share Class take up their respective tender 
offers in full. 
 
 
This information was brought to you by Cision http://news.cision.com 
 
 
END 
 
 

(END) Dow Jones Newswires

December 14, 2023 02:00 ET (07:00 GMT)

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