INVESCO PERPETUAL SELECT TRUST PLC Half-Yearly Financial Report Six Months Ended 30 November 2012 FINANCIAL PERFORMANCE CUMULATIVE TOTAL RETURNS TO 30 NOVEMBER 2012 UK EQUITY SHARE PORTFOLIO SIX ONE THREE FIVE MONTHS YEAR YEARS YEARS Net Asset Value 14.3% 16.9% 54.6% 31.4% Share Price 21.9% 34.6% 59.5% 39.0% FTSE All-Share Index 12.8% 12.1% 28.3% 12.4% GLOBAL EQUITY INCOME SHARE PORTFOLIO The name and objective of this Portfolio were changed with effect from 30 November 2011. SIX ONE THREE FIVE MONTHS YEAR YEARS YEARS Net Asset Value 9.6% 13.2% 19.1% 15.3% Share Price 8.8% 17.0% 17.5% 14.0% MSCI World Index (£) 8.3% 11.5% 25.1% 17.1% BALANCED RISK SHARE PORTFOLIO The name and objective of this Portfolio were changed with effect from 8 February 2012. SINCE SIX 8 FEB ONE THREE FIVE MONTHS 2012 YEAR YEARS YEARS Net Asset Value 6.0% 6.0% 4.5% -4.5% - 12.6% Share Price 10.9% 12.1% 10.3% -4.0% - 21.8% 3 month LIBOR +5% pa 3.0% 4.8% 6.0% 17.5% 36.7% MANAGED LIQUIDITY SHARE PORTFOLIO SIX ONE THREE FIVE MONTHS YEAR YEARS YEARS Net Asset Value 0.4% 1.1% 2.8% 10.4% Share Price -0.3% 0.5% 1.5% 7.2% Source: Thomson Reuters Datastream. . INTERIM MANAGEMENT REPORT INCORPORATING THE CHAIRMAN'S STATEMENT Investment Objective and Policy The Company's investment objective is to provide shareholders with a choice of investment strategies and policies, each intended to generate attractive risk-adjusted returns. The Company's share capital comprises four share classes: UK Equity Shares, Global Equity Income Shares, Balanced Risk Shares and Managed Liquidity Shares, each of which has its own separate portfolio of assets and attributable liabilities. The Company enables shareholders to tailor their asset allocation to reflect their view of prevailing market conditions. Shareholders have the opportunity to convert between share classes capital gains tax free every three months. Performance The six month period to the end of November 2012 remained unsettled, although markets made worthwhile gains overall. They continued to be dominated by a steep yield curve and the combination of very loose monetary policy and tight fiscal policy, which has now supported markets for the last four years. The good performance of the period under review was largely influenced by events in the Eurozone, where it became clear that neither the banking sector nor the Euro would be allowed to collapse without sustained and determined efforts to prevent such an outcome. The MSCI World Index reached its low in the 2008-9 crisis on 6 March 2009. Since then it has risen reasonably consistently by 81.0% on a total return basis, representing a compound annual growth rate of 17.2%. This performance of equities compares with a return over the same period from the FTSE Actuaries UK Conventional Gilts Over 15 Years Index of 37.4%, which represents a compound annual growth rate of 8.9%. While it has been the case that these asset classes have tended to be inversely correlated over short time periods, over the longer period this indicates a reappearance of the positive linkage that dominated markets after 1982. It has, however, been achieved at the cost of current extraordinarily low yields in bond markets. Equities' outperformance has benefited from a very low starting point for valuations, reasonable profits despite some disappointments and competitive current yields. The performance of the different share classes is set out in detail below. It is encouraging that, in the first reporting period in which all classes were invested on the basis set out last autumn, performance was both positive and ahead of the relevant benchmarks. In NAV terms, with dividends reinvested, the UK Equity Portfolio returned +14.3% over the six months compared with its benchmark FTSE All-Share Index total return of +12.8%. In the six months to 30 November 2012 the Global Equity Income Portfolio returned +9.6% compared with its benchmark MSCI World Index total return over the period of +8.3%. On 19 December 2012 Invesco Perpetual announced that Paul Boyne and Doug McGraw, who were the portfolio managers responsible for day-to-day management of the Global Equity Income portfolio, had accepted an offer to work for another investment firm in the US. Management of the portfolio has consequently been taken over by Nick Mustoe, Invesco Perpetual's Chief Investment Officer, supported by Invesco's Global Equity Group. There will be no change to the investment strategy of the portfolio, the objective of which continues to be to provide an attractive and growing level of income return and capital appreciation over the long term, predominantly through investment in a diversified portfolio of equities worldwide. The Balanced Risk Portfolio returned +6.0% compared with a return of +3.0% for its benchmark, 3 month LIBOR plus 5% pa. In NAV terms, the Company's more secure Managed Liquidity Shares, whose objective is derived from cash returns, was +0.4%. Dividends It remains the Directors' policy to distribute substantially all net revenues earned between each conversion date for each share class. The following first and second interim dividends have been paid: 17 August 2012 16 November 2012 UK Equity Shares: 1.15p 1.00p Global Equity Income 1.00p 0.65p Shares: Third interim dividends, payable on 15 February 2013, have also been declared, as follows: UK Equity Shares: 0.95p Global Equity Income 0.35p Shares: In consequence of the continued very low interest rates prevailing, the net revenue of the Managed Liquidity Portfolio has again been minimal and in view of the administrative costs, the Directors have so far not declared any interim dividends this financial year on the Managed Liquidity Shares. The net revenue earned to date will be taken into account in considering future dividends. In order to maximise the capital return on the Balanced Risk Shares, the Directors only intend to declare dividends on the Balanced Risk Shares to the extent required, having taken into account the dividends paid on the other Share classes, to maintain the Company's status as an investment trust. Present estimates indicate that it is unlikely that any dividend will be declared on the Balanced Risk shares for some time. Share Buy Backs and Discount During the six months to 30 November 2012, the Company purchased and placed in treasury 1,115,000 Managed Liquidity Shares. For the past year or so the Board has not had a formal discount policy for any Share class other than to maintain a narrow discount in the Managed Liquidity Share class. Despite the availability of the switching mechanism there have at various times been significant discounts in the other Share classes, creating arbitrage possibilities. A strategic review by the Board has led it to believe that it would be best for shareholders if the Company were to adopt a zero tolerance discount control policy for all four share classes whereby the Company will offer to issue or buy back shares of all classes with a view to maintaining the middle market price of the Shares at close to their respective net asset values. This will make explicit the policy previously pursued through the Managed Liquidity Share class and give existing and potential shareholders confidence both that underlying investment performance will be reflected in the Company's share prices and that there is continuous liquidity in the shares despite the small size of some of the share classes. The underlying assets of all the share classes are highly liquid so there should be no impact on the portfolio managers' performance. This decision also reflects continued confidence that the structure of the Company is a highly effective means of addressing the needs of investors. Outlook The Board remains confident that with the changes made in November 2011 we have Share classes matching our aspiration to provide attractive alternative investment solutions for existing and prospective shareholders and that all offer advantages to holders in the current unsettled market conditions. We further believe that the Company's structure, which enables shareholders to switch between share classes on a quarterly basis without cost or crystallising capital gains tax, is an attractive feature for private investors. As usual, there are plenty of uncertainties for markets to worry about, political, economic and climatic. After the large rises in both equity and bond markets of the last four years it does begin to look as though the macro-economic environment is changing. The US economy is somewhat out of step with most of the rest of the world. It has experienced better growth than most other developed economies and seems likely to cut back its relatively expansionary fiscal policy against a background of demand supported by changes in the energy market and an improving external sector. Elsewhere there are signs of a shift away from the rhetoric of austerity and of a desire to encourage credit growth even if it means accepting greater risk in the banking sector. If this has any success it may create weaker bond markets. Equities are better protected by an improvement in growth prospects. However, a rise in the discount rate for equities coming after a four year long rise in prices may hamper further substantial progress in the near future. Patrick Gifford Chairman 30 January 2013 . Related Party Transactions and Transactions with the Manager Under UK GAAP (UK accounting standards and applicable law), the Company has identified no related parties and there have been no related party transactions during the period. Invesco Asset Management Limited (`IAML'), a wholly owned subsidiary of Invesco Limited, acts as Manager and Company Secretary to the Company. Details of IAML's services and fee arrangements are summarised in note 2 on page 28 and are more fully described in the 2012 annual financial report, a copy of which can be found on the Manager's website at www.invescoperpetual.co.uk/ investmenttrusts. Principal Risks and Uncertainties A detailed explanation of principal risks and uncertainties can be found on pages 37 to 39 of the Company's 2012 annual financial report, which is available on the Manager's website. These are summarised as follows: • Investment Policy - the investment policies may not achieve the published investment objectives; • Risks Applicable to the Company - the prices of shares in the Company may not appreciate and the level of dividends may fluctuate; • Compulsory Conversion of a Class of Shares - if ownership of a class of shares becomes too concentrated the Directors may serve notice on holders of the affected class requiring them to convert to another class; • Liability of a Portfolio for the Liabilities of Another Portfolio - in the event that any Portfolio was unable to meet its liabilities, the shortfall would become a liability of the other Portfolios; • Market Movements and Portfolio Performance - falls in stock markets will affect the performance of the individual Portfolios and securities held within the Portfolios; • Gearing - borrowing will amplify the effect on shareholders' funds of gains and losses on the underlying securities; • Hedging - where hedging is used there is a risk that the hedge will not be effective; • Regulatory and Tax Related - whilst compliance with rules and regulations is closely monitored, breaches could affect returns to shareholders; • Additional Risks Applicable to Balanced Risk Shares - the use of financial derivative instruments, in particular futures, forms part of the investment policy and strategy of the Balanced Risk Portfolio. The degree of leverage inherent in futures trading potentially means that a relatively small price movement in a futures contract may result in an immediate and substantial loss to the Portfolio; • Additional Risks Applicable to Managed Liquidity Shares - the Shares are not designed to replicate a bank or building society deposit or money market fund; and • Reliance on Third Party Service Providers - the Company has no employees, so is reliant upon the performance of third party service providers, particularly the Manager, for it to function. In the view of the Board these principal risks and uncertainties are equally applicable to the remaining six months of the financial year as they were to the six months under review. Going Concern The financial statements have been prepared on a going concern basis. The Directors consider this to be appropriate as the Company has adequate resources to continue in operational existence for the foreseeable future. In reaching this conclusion, the Directors took into account the value of net assets; the Company's Investment Policy; its risk management policies; the diversified portfolio of readily realisable securities which can be used to meet funding commitments; the credit facility and the overdraft which can be used for both long-term and short-term funding requirements; the liquidity of the investments which could be used to repay the credit facility in the event that the facility could not be renewed or replaced; its revenue; and the ability of the Company in the light of these factors to meet all its liabilities and ongoing expenses. DIRECTORS' RESPONSIBILITY STATEMENT in respect of the preparation of the half-yearly financial report The Directors are responsible for preparing the half-yearly financial report using accounting policies consistent with applicable law and UK Accounting Standards. The Directors confirm that, to the best of their knowledge: - the condensed set of financial statements contained within the half-yearly financial report have been prepared in accordance with the Accounting Standards Board's Statement "Half-Yearly Financial Report"; - the interim management report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R of the FSA's Disclosure and Transparency Rules; and - the interim management report includes a fair review of the information required on related party transactions. The half-yearly financial report has not been audited or reviewed by the Company's auditors. Signed on behalf of the Board of Directors. Patrick Gifford Chairman 30 January 2013 . UK EQUITY SHARE PORTFOLIO PERFORMANCE RECORD Total Return SIX MONTHS TO YEAR TO YEAR TO YEAR TO YEAR TO 30 NOV 31 MAY 31 MAY 31 MAY 31 MAY 2012 2012 2011 2010 2009 Net Asset Value 14.3% -1.0% 28.1% 20.0% -20.0% Share Price 21.9% -3.4% 27.5% 20.1% -20.3% FTSE All-Share Index 12.8% -8.0% 20.4% 22.9% -23.7% Source: Thomson Reuters Datastream. Revenue return per 2.10p 4.20p 4.10p 3.70p 3.30p share Dividend 2.15p 4.25p 4.20p 3.80p 3.45p UK EQUITY SHARE PORTFOLIO MANAGER'S REPORT Investment Objective The investment objective of the UK Equity Share Portfolio is to provide shareholders with an attractive real long-term total return by investing primarily in UK quoted equities. Market and Economic Review Global stock markets made further positive progress during the period after Mario Draghi stated that he would do `whatever it takes' to preserve the euro. The European Central Bank announced a new bond buying plan and the US Federal Reserve unveiled additional and unlimited quantitative easing. Concerns over the threat of a US `fiscal cliff' and the Greek debt crisis brought only a temporary halt to the stock market's progress as the period ended before resuming its upwards trend. The period was also noteworthy for the number of profit downgrades from companies, particularly within the industrial cyclical part of the market. These included Caterpillar, a traditional bellwether of the global corporate outlook, which cut its earnings forecasts as far ahead as 2015, citing weak demand from the mining industry. Portfolio Strategy and Review On a total return basis, the Net Asset Value of the UK Equity Share class increased by 14.3% for the six months ended 30 November 2012, compared to a rise of 12.8% in the FTSE All-Share Index. There were some significant contributions to the Portfolio's performance from a range of the "mid-cap" stocks held. Provident Financial announced a positive trading update, notably in its fast growing credit card business, while Amlin, Beazley and Hiscox all announced returns to profit on the back of a more benign claims environment. TalkTalk Telecom saw its shares rise strongly over a period where the company announced its own YouView TV service and an upbeat trading update with its interim results. BT Group was another telecoms company to perform well over the period, helped by a more positive pricing environment for UK line rental and confirmation by the company of on-going cost cutting potential. The company also announced deals for a range of TV rights for Premier League football and for Premiership Rugby. Shares in BAE Systems performed strongly in the months before the company confirmed that it was in early stage talks with EADS regarding a merger. The deal did not look particularly beneficial to shareholders and the companies subsequently confirmed that merger negotiations had been terminated. After an initial fall on this news the shares resumed their upward progress. In an environment where cyclical stocks typically outperformed those viewed as defensive, the portfolio's holdings in the tobacco sector acted as a drag on performance. We maintain our view that the companies we hold in the sector represent exactly the sort of quality stocks that can deliver attractive profit and dividend growth through a low growth environment and do not yet believe that this sustainable growth potential is valued appropriately. There were contrasting performances from the holdings in the traditionally defensive pharmaceutical sector. While GlaxoSmithKline saw its share price fall as the company confirmed challenging trading conditions in Europe, shares in AstraZeneca rallied on news of the appointment of a new Chief Executive and the Portfolio's holdings in the Swiss companies Novartis and Roche also performed strongly over the period. There was disappointing news from Chemring during the period. Carlyle Group called off discussions with the company relating to a possible takeover and Chemring also issued a further profit warning. With a new management team now in place, the Manager is confident that the business can be stabilised. There were relatively few significant changes to the Portfolio's holdings during the period. A new investment was made in Sherborne Investments and the holdings in Carnival and in Thomas Cook were increased. The holding of Filtrona was disposed of following very strong performance while the holdings in Wm Morrison, Tate & Lyle and Vodafone were reduced. Outlook The stock market's rise in the past year, fuelled by monetary stimulus and central bank policy initiatives, has occurred despite reductions in the forecasts of company earnings for the current financial year due to renewed weakness in the key economies of the US, China and the Eurozone. Equity valuations are therefore no longer as compellingly cheap as they were at the beginning of the year, especially within the mid-cap area of the market. The portfolio manager expects that stock markets may now track sideways for a while. Despite the good market performance, there is still a subset of stocks that look attractively valued, particularly for investors seeking income. Indeed with the yield on offer from equities currently well above that of bonds or cash - a situation last witnessed in the 1950s - and earnings growth under pressure, income is likely to provide a higher percentage of stock market total return. The portfolio manager's investment strategy is to focus on companies with reliable cashflow and sustainable dividend growth, operating in less cyclical and more defensive industries. Overlaying this is balance sheet strength, with an associated ability to access the credit markets for funding. He continues to believe that the valuations of such companies do not reflect their ability to deliver earnings and dividend growth in a continued challenging economic environment. Mark Barnett Portfolio Manager 30 January 2013 UK EQUITY SHARE PORTFOLIO LIST OF INVESTMENTS AT 30 NOVEMBER 2012 Ordinary shares listed in the UK unless stated otherwise MARKET % OF COMPANY INDUSTRY GROUP† VALUE PORTFOLIO £'000 Imperial Tobacco Tobacco 3,103 6.3 BT Fixed Line 2,930 5.9 Telecommunications Reynolds American - US common Tobacco 2,667 5.4 stock British American Tobacco Tobacco 2,654 5.4 AstraZeneca Pharmaceuticals and 2,117 4.3 Biotechnology Roche - Swiss common stock Pharmaceuticals and 2,020 4.1 Biotechnology BAE Systems Aerospace and Defence 1,971 4.0 GlaxoSmithKline Pharmaceuticals and 1,886 3.8 Biotechnology Reckitt Benckiser Household Goods and Home 1,784 3.6 Construction Babcock International Support Services 1,713 3.5 Novartis - Swiss common stock Pharmaceuticals and 1,671 3.4 Biotechnology Hiscox Non-life Insurance 1,509 3.2 Capita Support Services 1,258 2.5 Ladbrokes Travel and Leisure 1,190 2.4 Drax Electricity 1,175 2.4 TalkTalk Telecom Fixed Line 1,163 2.4 Telecommunications Amlin Non-life Insurance 1,110 2.2 Beazley Non-life Insurance 1,100 2.2 Provident Financial Financial Services 1,093 2.2 Centrica Gas, Water and 1,003 2.0 Multiutilities Carnival Travel and Leisure 993 2.0 Compass Travel and Leisure 954 1.9 Rentokil Initial Support Services 929 1.9 KCOM Fixed Line 918 1.9 Telecommunications Reed Elsevier Media 917 1.9 BTG Pharmaceuticals and 848 1.7 Biotechnology SSE Electricity 828 1.7 Brown (N) General Retailers 756 1.5 Serco Support Services 756 1.5 Vodafone Mobile Telecommunications 721 1.5 A J Bell - Unquoted Financial Services 688 1.4 Tate & Lyle Food Producers 574 1.2 Homeserve Support Services 569 1.2 Lancashire Non-life Insurance 539 1.1 Thomas Cook Travel and Leisure 533 1.1 Wm Morrison Supermarkets Food and Drug Retailers 464 0.9 Vectura Pharmaceuticals and 359 0.7 Biotechnology Doric Nimrod Air Two - C Equity Investment 324 0.7 shares Instruments Impax Environmental Markets Equity Investment 321 0.6 Instruments Chemring Aerospace and Defence 320 0.6 Sherborne Investors Equity Investment 294 0.6 (Guernsey) B Instruments Regus Support Services 271 0.5 PuriCore Health Care Equipment and 123 0.2 Services Barclays Bank - Nuclear Power Electricity 119 0.2 Notes 28 February 2019(1) Xcounter - Swedish common Health Care Equipment and 118 0.2 stock Services Halosource I & II (AIM Chemicals 41 0.1 listed) Coalfield Resources (formerly Mining 26 - UK Coal) Helphire Financial Services 6 - Hibu (formerly Yell) Media 2 - XL Techgroup Software and Computer - - Services 49,428 100.0 (1)Contingent Value Rights (`CVRs') referred to as Nuclear Power Notes (`NPNs') were offered by EDF as a partial alternative to cash in its bid for British Energy. The NPNs were issued by Barclays Bank. †FTSE Industry Classification Benchmark. UK EQUITY SHARE PORTFOLIO INCOME STATEMENT YEAR ENDED SIX MONTHS ENDED SIX MONTHS ENDED 31 MAY 30 NOVEMBER 2012 30 NOVEMBER 2011 2012 REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL TOTAL £'000 £'000 £'000 £'000 £'000 £'000 £'000 Gains/(losses) on - 4,861 4,861 - (1,801) (1,801) (1,471) investments Foreign exchange - 2 2 - 4 4 4 gains Income 962 - 962 989 - 989 2,024 Management fee - (47) (110) (157) (44) (104) (148) (300) note 2 Performance fee - - (22) (22) - (217) (217) (388) note 2 Other expenses (78) - (78) (85) (1) (86) (186) Net return before 837 4,731 5,568 860 (2,119) (1,259) (317) finance costs and taxation Finance costs (18) (43) (61) (19) (45) (64) (123) Return on ordinary 819 4,688 5,507 841 (2,164) (1,323) (440) activities before tax Tax on ordinary (11) - (11) (11) - (11) (36) activities Return on ordinary 808 4,688 5,496 830 (2,164) (1,334) (476) activities after tax for the financial period Basic return per 2.1p 12.2p 14.3p 2.1p (5.5)p (3.4)p (1.2)p ordinary share - note 4 SUMMARY OF NET ASSETS AT AT AT 30 NOVEMBER 30 NOVEMBER 31 MAY 2012 2011 2012 £'000 £'000 £'000 Fixed assets 49,428 45,529 46,520 Current assets 612 362 582 Creditors falling due within one (981) (625) (1,077) year, excluding borrowings Bank loan (7,800) (5,625) (7,100) Net assets 41,259 39,641 38,925 Net asset value per ordinary share - 112.1p 100.1p 100.0p note 5 Gross gearing 18.9% 14.2% 18.2% Net gearing 18.2% 14.0% 17.8% . GLOBAL EQUITY INCOME SHARE PORTFOLIO PERFORMANCE RECORD The name, objective and benchmark of this Portfolio were changed with effect from 30 November 2011. Total Return SIX MONTHS TO YEAR TO YEAR TO YEAR TO YEAR TO 30 NOV 31 MAY 31 MAY 31 MAY 31 MAY 2012 2012 2011 2010 2009 Net Asset Value 9.6% -8.6% 9.8% 26.0% - 16.6% Share Price 8.8% -8.0% 8.1% 25.8% - 16.8% MSCI World Index (£) 8.3% -4.8% 13.0% 26.1% - 20.1% Source: Thomson Reuters Datastream. Revenue return per share 1.10p 2.70p 2.00p 1.50p 2.10p Dividend 1.65p 2.50p 1.70p 1.35p 2.25p GLOBAL EQUITY INCOME SHARE PORTFOLIO MANAGER'S REPORT Investment Objective The investment objective of the Global Equity Income Portfolio is to provide an attractive and growing level of income return and capital appreciation over the long term, predominantly through investment in a diversified portfolio of equities worldwide. Market and Economic Review In the first half of the year global equity markets were in `risk-on risk-off' mode, reflecting markets rallying as investor sentiment improved and selling off as investors became concerned by poor macro-economic news. Performance was primarily driven by European sovereign debt worries and fears of a slowdown in Chinese economic growth. Global macro momentum had deteriorated and political uncertainty in Europe had increased. However, there has been a significant change in sentiment towards Europe since July when European Central Bank (ECB) President Mario Draghi declared that the ECB would do `whatever it takes' to save the euro. Global equity markets were driven by the European Central Bank's bond-buying rescue plan, alongside overwhelming central bank support from the US, UK and Japan. Following the US presidential election in November the focus of markets turned to the threat of a potential US `fiscal cliff' of spending cuts and tax rises. Market sentiment in the final weeks of 2012 was consequently dominated by the likely impact of $600 billion of tax increases and spending cuts should the fiscal cliff issue remain unresolved. Markets were anticipating a choppy ride over the next few months amid such levels of uncertainty. However, a last-minute deal on the evening of 1 January 2013 triggered a relief rally in global equity markets as the threat of the US tipping back into recession receded. Yet the long term real issue is not so much about the fiscal cliff but the broader fiscal picture over the next two to three years. Portfolio Strategy and Review On a total return basis, the Net Asset Value of the Global Equity Income Share class rose by 9.6% over the six months to the end of November 2012, compared to a rise of 8.3% in the MSCI World Index (£, net of withholding tax). The start of the review period witnessed yet another swing of the pendulum from risk off to risk on, with central bank support being the trigger for the change in sentiment. Markets rallied and the shape of sector leadership tended to change month by month. We expect that the Portfolio should outperform in falling markets, participate in broad-based up markets and lag the risk-on rallies. Performance of the Portfolio over the six months has been consistent with these expectations. Financials led the review period overall, and while the portfolio is underweight this sector relative to the benchmark, stock picking was strong (eg. HSBC). Healthcare was another strong performer against the broader market. The portfolio's overweight exposure to the sector was a positive for performance as was stock selection. Notable contributors to performance included Roche, Baxter International and Novartis. The strongest area of outperformance for the portfolio was its consumer discretionary exposure, and more specifically, its position in the media sub-sector. The portfolio has a large exposure to media companies where the focus is upon businesses which demonstrate strong cash flow dynamics and attractive valuations. Some of the best individual stock performers were Wolters Kluwer, Time Warner Inc and Time Warner Cable. In spite of the often volatile nature of markets, the management of the portfolio continues to reflect a value philosophy, focusing on cash flow generation and the return of capital to shareholders. The following sectors are currently favoured: consumer discretionary, consumer staples, health care and industrials. Outlook The likely outlook remains one of slow and prolonged economic recovery, against a backdrop of European sovereign debt concerns and fiscal austerity in the developed world. The strategy for the portfolio remains constant, to invest in high quality companies at attractive valuations. High quality companies are considered to be those that can sustain profit margins and deliver positive returns through the economic cycle. Growing and sustainable dividends are viewed as clear evidence of these sorts of companies. In aggregate therefore, companies that offer attractive yields, sustainable income and capital upside are targeted. Nick Mustoe Portfolio Manager 30 January 2013 GLOBAL EQUITY INCOME SHARE PORTFOLIO LIST OF INVESTMENTS AT 30 NOVEMBER 2012 Ordinary shares unless stated otherwise MARKET % OF COMPANY INDUSTRY GROUP† COUNTRY† VALUE PORTFOLIO £'000 Novartis Pharmaceuticals, Switzerland 1,413 4.2 Biotechnology and Life Sciences Roche Pharmaceuticals, Switzerland 1,216 3.6 Biotechnology and Life Sciences Johnson & Johnson Pharmaceuticals, US 1,144 3.4 Biotechnology and Life Sciences SES Media France 1,086 3.2 Wolters Kluwer Media Netherlands 1,082 3.2 British Sky Broadcasting Media UK 1,042 3.1 British American Tobacco Food, Beverage and UK 1,041 3.1 Tobacco Amcor Materials Australia 1,008 3.0 Canon Technology Hardware Japan 1,008 3.0 and Equipment Philip Morris Food, Beverage and US 1,006 3.0 International Tobacco Pearson Media UK 972 2.8 Vodafone Telecommunication UK 927 2.7 Services United Technologies Capital Goods US 883 2.6 Emerson Electric Capital Goods US 856 2.5 HSBC Banks UK 840 2.5 Exxon Mobil Energy US 682 2.0 Chevron Energy US 670 2.0 Microsoft Software and Services US 663 1.9 Vivendi Telecommunication France 604 1.8 Services JP Morgan Chase Diversified Financials US 597 1.8 Pfizer Pharmaceuticals, US 595 1.7 Biotechnology and Life Sciences Robert Half International Commercial and US 578 1.7 Professional Services AON - A Shares Insurance US 573 1.7 Hutchison Whampoa Capital Goods Hong Kong 557 1.6 Orkla Capital Goods Norway 547 1.6 Deutsche Boerse Diversified Financials Germany 535 1.6 ComfortDelGro Transportation Singapore 532 1.6 Northern Trust Diversified Financials US 532 1.6 Time Warner Media US 531 1.5 Automatic Data Processing Software and Services US 522 1.5 Mitsubishi Estate Real Estate Japan 516 1.5 United Parcel Service - B Transportation US 514 1.5 shares Koninklijke Ahold Food and Staples Netherlands 512 1.5 Retailing Raytheon Capital Goods US 497 1.4 Macy's Retailing US 481 1.4 Viacom - B shares Media US 440 1.3 Target Retailing US 432 1.3 Mondelez International - A Food, Beverage and US 429 1.3 shares Tobacco Safran Capital Goods France 415 1.2 Time Warner Cable Media US 415 1.2 Baxter International Health Care Equipment US 411 1.2 and Services GlaxoSmithKline Pharmaceuticals, UK 403 1.2 Biotechnology and Life Sciences Honda Motor Automobiles and Japan 394 1.2 Components Lawson Food and Staples Japan 383 1.1 Retailing Covidien Health Care Equipment US 367 1.1 and Services Procter & Gamble Household and Personal US 366 1.1 Products Catlin Insurance UK 362 1.1 Venture Technology Hardware Singapore 343 1.0 and Equipment CRH - ADR Materials Ireland 336 1.0 Kraft Foods Food, Beverage and US 336 1.0 Tobacco Accenture - A shares Software and Services US 319 0.9 Tyco International Capital Goods US 256 0.8 Keihin Automobiles and Japan 199 0.5 Components Pentair Capital Goods US 105 0.3 NEC Networks & System Capital Goods Japan 102 0.3 Integration Canon Marketing Japan Retailing Japan 89 0.3 Meitec Commercial and Japan 84 0.2 Professional Services NEC Fielding Software and Services Japan 81 0.2 Shimachu Retailing Japan 80 0.2 OPTEX Technology Hardware Japan 79 0.2 and Equipment 33,988 100.0 †MSCI and Standard & Poor's Global Industry Classification Standard. GLOBAL EQUITY INCOME SHARE PORTFOLIO INCOME STATEMENT YEAR ENDED SIX MONTHS ENDED SIX MONTHS ENDED 31 MAY 30 NOVEMBER 2012 30 NOVEMBER 2011 2012 REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL TOTAL £'000 £'000 £'000 £'000 £'000 £'000 £'000 Gains/(losses) on - 2,983 2,983 - (4,462) (4,462) (3,898) investments (Losses)/gains on - (52) (52) - - - - derivative instruments Foreign exchange losses - (7) (7) - (80) (80) (64) Income 487 - 487 387 - 387 1,193 Management fees - note 2 (39) (92) (131) (38) (89) (127) (257) Other expenses (65) - (65) (80) - (80) (158) Net return before finance 383 2,832 3,215 269 (4,631) (4,362) (3,184) costs and taxation Finance costs - (1) (1) (1) (2) (3) (4) Return on ordinary 383 2,831 3,214 268 (4,633) (4,365) (3,188) activities before tax Tax on ordinary activities (37) - (37) (29) - (29) (106) Return on ordinary 346 2,831 3,177 239 (4,633) (4,394) (3,294) activities after tax for the financial period Basic return per ordinary 1.1p 9.2p 10.3p 0.8p (14.6)p (13.8)p (10.4)p share - note 4 SUMMARY OF NET ASSETS AT AT AT 30 NOVEMBER 30 NOVEMBER 31 MAY 2012 2011 2012 £'000 £'000 £'000 Fixed assets 33,988 32,772 33,733 Current assets 181 797 692 Overdraft (15) - (538) Derivative liabilities held at fair value (7) - - through profit or loss Creditors falling due within one year, (91) (185) (107) excluding borrowings Net assets 34,056 33,384 33,780 Net asset value per ordinary share - note 116.8p 106.1p 108.1p 5 Gross gearing 0.0% 0.0% 1.6% Net gearing 0.0% n/a 0.1% Net cash n/a 1.7% n/a . BALANCED RISK SHARE PORTFOLIO PERFORMANCE RECORD The name and objective of this Portfolio were changed with effect from on 8 February 2012. Total Return SIX MONTHS YEAR TO YEAR TO YEAR TO YEAR TO TO 30 NOV 31 MAY 31 MAY 31 MAY 31 MAY 2012 2012 2011 2010 2009 Net Asset Value 6.0% -8.0% -0.3% 6.9% -19.3% Share Price 10.9% -12.4% -1.9% 10.3% -22.1% 3 month LIBOR +5% pa 3.0% 5.9% 5.7% 5.9% 10.1% Source: Thomson Reuters Datastream Total Return - since change of objective (8 February 2012) 8 FEBRUARY TO 30 NOVEMBER 2012 Net Asset Value 6.0% Share Price 12.1% 3 month LIBOR +5% pa 4.8% BALANCED RISK SHARE PORTFOLIO MANAGER'S REPORT Investment Objective The investment objective of the Balanced Risk Portfolio is to provide shareholders with an attractive total return in differing economic and inflationary environments, and with low correlation to equity and bond market indices by gaining exposure to three asset classes: debt securities, equities and commodities. Market and Economic Review Global Markets in the six months to 30 November 2012 were broadly positive despite growing concerns over continued weakness in economic activity and the US fiscal cliff. Bond yields spiked several times over the period, but managed to settle down to similar or slightly lower levels than they started, as markets see-sawed between concerns over inflation and uncertainty. Most equity markets performed well on the expectation of additional policy support and hope that Europe would make headway on the lingering economic issues. Commodity performance was positive and supported by dollar weakness, but subdued by grain prices as fears over tight supplies were alleviated by better than expected inventories and crop forecasts. Portfolio Strategy and Review The Balanced Risk Portfolio posted a Net Asset Value return for the six months of 6%. Equities provided the largest contribution over the period with strong results from all six of the markets invested in (Europe, Japan, UK, US large cap, US small cap and Hong Kong). Commodities produced robust results overall due to a strong rally in the middle of the period on the expectation that additional policy support would be forthcoming from the Fed's mid-September meeting. However, performance in the asset class was subdued in October and November over better than expected crop yields, expectations of reduced demand from China and concerns in Europe. Government bonds contributed marginally to performance as yields fluctuated over fears of inflation and continued weakness in Europe as well as the approach of the potential US `fiscal cliff'. Tactical shifts helped to match the strategy to the operating environment and marginally improved results. Outlook Investors should expect high volatility across markets as media coverage of US budget negotiations intensifies. The stock market is likely to rally on any indications that progress is being made and will subsequently sell off on any indications to the contrary. Beyond US budgetary issues, the situation in Europe is seen as an ongoing and difficult to resolve issue, compounded by uncertainty as to the stability of Chinese economic growth and geopolitical tensions across the Middle East. Tactical positioning continues to overweight all six equity markets. Bonds saw the largest recent tactical change, with a net underweight risk allocation being adopted. Australia, Canada and Japanese bond markets now assume an underweight, while Germany takes a neutral position. However, the US and UK bond market exposures remain overweight. Within commodities, the overweights to soy beans and soy meal have been removed and are now neutral. In precious metals the overweight to gold has been reduced, but the overweight to silver has been slightly increased. Copper has been moved to overweight from an underweight position. The overweight to Brent crude has been added to slightly and West Texas Intermediate crude has been moved from underweight to neutral. Scott Wolle Chief Investment Officer Invesco Global Asset Allocation 30 January 2013 BALANCED RISK SHARE PORTFOLIO LIST OF DERIVATIVE INSTRUMENTS AT 30 NOVEMBER 2012 NOTIONAL NOTIONAL EXPOSURE EXPOSURE AS % OF £'000 NET ASSETS Government Bonds Australia 2,033 18.2 UK 2,029 18.2 Germany 1,970 17.6 Canada 1,459 13.1 US 934 8.4 Japan 877 7.8 Total Bond Futures 9,302 83.3 Equities Europe 775 6.9 Japan 772 6.9 UK 705 6.3 US large cap 705 6.3 US small cap 562 5.0 Hong Kong 443 4.0 Total Equity Futures 3,962 35.4 Commodities Precious Metals Gold 751 6.7 Silver 315 2.8 Energy Brent crude 207 1.9 Gas oil 178 1.6 Heating oil 159 1.4 Gasoline 143 1.3 WTI crude 56 0.5 Agriculture Sugar 256 2.3 Soy beans 224 2.0 Soy meal 216 1.9 Live cattle 33 0.3 Industrial Metals Copper 492 4.4 Aluminium 129 1.2 Total Commodities Futures 3,159 28.3 Total Derivative Instruments 16,423 147.0 The targeted annualised risk (volatility of monthly returns) for the portfolio as listed above is analysed as follows: ASSET CLASS RISK CONTRIBUTION Bonds 2.1% 22.1% Equities 4.4% 46.0% Commodities 3.0% 31.9% 9.5% 100.0% LIST OF INVESTMENTS AT 30 NOVEMBER 2012 MARKET % YIELD VALUE OF NET % £'000 ASSETS Short Term Investments Short-Term Investments Company (Global 0.396 3,600 32.3 Series) UK Treasury Bill 11 Feb 2013 0.247 2,998 26.8 UK Treasury Bill 11 Mar 2013 0.275 2,997 26.8 Total Short Term Investments 9,595 85.9 Hedge Funds(1) 52 0.5 Total Fixed Asset Investments 9,647 86.4 (1)The hedge fund investments are residual holdings of the previous investment strategy, which are in process of disposal and/or liquidation. BALANCED RISK SHARE PORTFOLIO INCOME STATEMENT YEAR ENDED SIX MONTHS ENDED SIX MONTHS ENDED 31 MAY 30 NOVEMBER 2012 30 NOVEMBER 2011 2012 REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL TOTAL £'000 £'000 £'000 £'000 £'000 £'000 £'000 Losses on investments - (10) (10) - (828) (828) (906) Gains/(losses) on derivative 32 695 727 - - - (11) instruments Foreign exchange (losses)/ - (24) (24) - (1) (1) 14 gains Income 18 - 18 - - - 13 Management fees - note 2 (12) (28) (40) - (14) (14) (43) Other expenses (27) - (27) (28) - (28) (55) Return on ordinary 11 633 644 (28) (843) (871) (988) activities before finance costs Finance costs - - - - (11) (11) (11) Return on ordinary 11 633 644 (28) (854) (882) (999) activities before tax Tax on ordinary activities - - - - - - - Return on ordinary 11 633 644 (28) (854) (882) (999) activities after tax for the financial period Basic return per ordinary 0.1p 6.2p 6.3p (0.3)p (8.0)p (8.3)p(9.4)p share - note 4 SUMMARY OF NET ASSETS AT AT AT 30 NOVEMBER 30 NOVEMBER 31 MAY 2012 2011 2012 £'000 £'000 £'000 Fixed assets 9,647 10,873 9,617 Derivative assets held at fair value 160 - 374 through profit or loss Current assets 1,482 210 1,351 Derivative liabilities held at fair value (87) - (658) through profit or loss Other creditors excluding borrowings (30) (26) (45) Net assets 11,172 11,057 10,639 Net asset value per ordinary share - note 5 109.4p 104.2p 103.1p Exposure 147.0% n/a 169.8% . MANAGED LIQUIDITY SHARE PORTFOLIO PERFORMANCE RECORD Total Return SIX MONTHS TO YEAR TO YEAR TO YEAR TO YEAR TO 30 NOV 31 MAY 31 MAY 31 MAY 31 MAY 2012 2012 2011 2010 2009 Net Asset Value 0.4% 0.8% 1.0% 2.4% 2.9% Share Price -0.3% 0.3% 1.0% 0.4% 4.8% Revenue return per share 0.10p 0.30p 0.50p 0.30p 3.60p Dividend - 0.50p 0.50p 0.40p 4.10p Source: Thomson Reuters Datastream. MANAGED LIQUIDITY SHARE PORTFOLIO MANAGER'S REPORT Investment Objective The investment objective of the Managed Liquidity Share Portfolio is to produce an appropriate level of income return combined with a high degree of security. Market and Economic Review Continued low UK interest rates resulted in low but positive returns for the portfolio. The Monetary Policy Committee of the Bank of England voted unanimously throughout the six month period to 30 November 2012 to keep UK interest rates unchanged at the record low level of 0.5%. However, following on from the extension of the bank's asset purchasing programme to £325 billion in February, support for a further extension grew in the summer months. Bank Governor, Sir Mervyn King, was in a minority of four of the nine-member committee voting for a £25 billion increase in June. However, in July a £50 billion extension to a total of £375 billion was agreed by seven of the members. UK inflation (annual change in the Consumer Price Index) remained relatively low over the period, falling from 2.8% in May to 2.2% in September, before rising to close the period on 2.7%. Rising food prices and increased utility charges were both factors in this pick up over the autumn months. Economic activity remains subdued. The UK economy came out of recession in the third quarter of 2012 and growth in private sector employment has boosted overall employment. However, unemployment remains high, at 7.8% in September. In addition those in work are seeing their real incomes squeezed, with earnings rising just 1.7% in the year to September, while prices rose 2.2%. Sub-inflationary earnings growth has now been a feature of the UK economy for four years. The effect of this on consumption can be seen in retail sales data which shows sales rising at an annual level of just 0.6% to October. The 2 year Gilt yield rose from 0.24% at the end of May to 0.32% at the end of November while the 10 year yield rose from 1.57% to 1.78%. In price terms, the March 2022 4% Gilt fell from £121.94 to £120.57. These rises in yield in part reflect the greater investor appetite for credit risk, which has seen demand for corporate bonds increase. According to data from Merrill Lynch, aggregate sterling AAA rated corporate bond yields fell from 2.40% to 1.90% over the same period. Portfolio Strategy and Review Our investment strategy is achieved by investing in the Invesco Perpetual Money Fund and Short-Term Investments Company (Global Series)(`STIC'), each of which invests in a diversified portfolio of high quality Sterling denominated short-term money market instruments. The Invesco Perpetual Money Fund (but not STIC) has maintained holdings in floating-rate notes (FRNs) where yields are reset every three months to reflect changes in LIBOR (the London Interbank Offered Rate benchmark interest rate). UK interest rates are expected to continue to remain near their current low levels for a considerable time, with any policy adjustments being gradual and drawn out, so the fund also has positions in a number of government, quasi-government and corporate bonds. These have higher interest coupons than those currently available on FRNs. In order to limit risk exposure, these bonds are both short dated and of high quality. Outlook It is expected that economic growth in the UK will continue to be subdued as poor earnings growth and continuing balance sheet strengthening put downward pressure on consumption. Interest rates are not expected to rise quickly from current levels. Stuart Edwards Portfolio Manager 30 January 2013 MANAGED LIQUIDITY SHARE PORTFOLIO LIST OF INVESTMENTS AT AT AT 30 NOVEMBER 30 NOVEMBER 31 MAY 2012 2011 2012 MARKET MARKET MARKET VALUE VALUE VALUE FUND £'000 £'000 £'000 Invesco Perpetual Money Fund† 7,584 8,285 7,566 Short-Term Investments Company (Global 4,866 95 1,166 Series) 12,450 8,380 8,732 †At the period end the Managed Liquidity Share Portfolio held 13.1% (November 2011: 12.3%; May 2012: 11.9%) of the outstanding shares in the Invesco Perpetual Money Fund. MANAGED LIQUIDITY SHARE PORTFOLIO INCOME STATEMENT YEAR ENDED SIX MONTHS ENDED SIX MONTHS ENDED 31 MAY 30 NOVEMBER 2012 30 NOVEMBER 2011 2012 REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL TOTAL £'000 £'000 £'000 £'000 £'000 £'000 £'000 Losses on investments - (1) (1) - (14) (14) (8) Income 26 - 26 28 - 28 60 Management fees - note 2 (3) - (3) - - - (1) Other expenses (18) - (18) (17) - (17) (32) Return on ordinary 5 (1) 4 11 (14) (3) 19 activities before tax for the financial period Tax on ordinary activities - - - - - - - Return on ordinary 5 (1) 4 11 (14) (3) 19 activities after tax for the financial period Basic return per ordinary 0.1p 0.0p 0.1p 0.1p (0.1)p - 0.2p share - note 4 SUMMARY OF NET ASSETS AT AT AT 30 NOVEMBER 30 NOVEMBER 31 MAY 2012 2011 2012 £'000 £'000 £'000 Fixed assets 12,450 8,380 8,732 Current assets 76 68 81 Creditors falling due within one year, (162) (162) (161) excluding borrowings Overdraft - (99) - Net assets 12,364 8,187 8,652 Net asset value per ordinary share - note 5 102.9p 102.4p 102.5p . INVESCO PERPETUAL SELECT TRUST PLC CONDENSED INCOME STATEMENT YEAR ENDED SIX MONTHS ENDED SIX MONTHS ENDED 31 MAY 30 NOVEMBER 2012 30 NOVEMBER 2011 2012 REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL TOTAL £'000 £'000 £'000 £'000 £'000 £'000 £'000 Gains/(losses) on - 7,833 7,833 - (7,080) (7,080) (6,283) investments Gains/(losses) on 32 643 675 - - - (11) derivative instruments Foreign exchange losses - (29) (29) - (77) (77) (46) Income 1,493 - 1,493 1,404 - 1,404 3,290 Management fees - note 2 (101) (230) (331) (82) (207) (289) (601) Performance fees - note 2 - (22) (22) - (217) (217) (388) Other expenses (188) - (188) (210) (26) (236) (431) Net return before finance 1,236 8,195 9,431 1,112 (7,607) (6,495) (4,470) costs and taxation Finance costs (18) (44) (62) (20) (58) (78) (138) Return on ordinary 1,218 8,151 9,369 1,092 (7,665) (6,573) (4,608) activities before tax Tax on ordinary (48) - (48) (40) - (40) (142) activities Return on ordinary 1,170 8,151 9,321 1,052 (7,665) (6,613) (4,750) activities after tax for the financial period Basic return per ordinary share - note 4 UK Equity Share Portfolio 2.1p 12.2p 14.3p 2.1p (5.5)p (3.4)p (1.2)p Global Equity Income 1.1p 9.2p 10.3p 0.8p (14.6)p (13.8)p (10.4)p Share Portfolio Balanced Risk Share 0.1p 6.2p 6.3p (0.3)p (8.0)p (8.3)p (9.4)p Portfolio Managed Liquidity Share 0.1p - 0.1p 0.1p (0.1)p - 0.2p Portfolio The total column of this statement represents the Company's profit and loss account, prepared in accordance with UK Accounting Standards. The supplementary revenue and capital columns are both prepared in accordance with the Statement of Recommended Practice issued by the Association of Investment Companies. All items in the above statement derive from continuing operations and the Company has no other gains or losses, therefore no statement of recognised gains or losses is presented. No operations were acquired or discontinued in the period. Income Statements for the different share classes are shown on pages 11, 15, 19 and 22 for the UK Equity, Global Equity Income, Balanced Risk and Managed Liquidity Share Portfolios respectively. INVESCO PERPETUAL SELECT TRUST PLC CONDENSED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS CAPITAL SHARE SHARE SPECIAL REDEMPTION CAPITAL REVENUE CAPITAL PREMIUM RESERVE RESERVE RESERVE RESERVE TOTAL £'000 £'000 £'000 £'000 £'000 £'000 £'000 SIX MONTHS ENDED 30 NOVEMBER 2012 At 31 May 2012 1,071 1,290 87,160 324 2,101 50 91,996 Cancellation of - - (1) 1 - - - deferred Shares Shares issued on 4 - (4) - - - - conversion Shares bought back - - (1,116) - - - (1,116) and held in treasury Net return on - - - - 8,151 1,170 9,321 ordinary activities Dividends - note 8 - - (130) - - (1,220) (1,350) At 30 November 2012 1,075 1,290 85,909 325 10,252 - 98,851 YEAR ENDED 31 MAY 2012 At 31 May 2011 1,071 1,290 89,617 324 9,403 7 101,712 Shares bought back - - (2,457) - - - (2,457) and held in treasury Net return on - - - - (7,302) 2,552 (4,750) ordinary activities Dividends for the - - - - - (2,509) (2,509) year At 31 May 2012 1,071 1,290 87,160 324 2,101 50 91,996 SIX MONTHS ENDED 30 NOVEMBER 2011 At 31 May 2011 1,071 1,290 89,617 324 9,403 7 101,712 Shares bought back - - (1,723) - - - (1,723) and held in treasury Net return on - - - - (7,665) 1,052 (6,613) ordinary activities Dividends - note 8 - - (48) - - (1,059) (1,107) At 30 November 2011 1,071 1,290 87,846 324 1,738 - 92,269 INVESCO PERPETUAL SELECT TRUST PLC CONDENSED BALANCE SHEET REGISTERED NUMBER 5916642 GLOBAL UK EQUITY BALANCED MANAGED EQUITY INCOME RISK LIQUIDITY Total £'000 £'000 £'000 £'000 £'000 AT 30 NOVEMBER 2012 Fixed assets Investments held at fair value 49,428 33,988 9,647 12,450 105,513 through profit or loss Current assets Derivative assets held at fair value - - 160 - 160 through profit or loss Debtors 334 174 4 62 574 Cash, short-term deposits and cash 278 7 1,478 14 1,777 held at brokers 612 181 1,642 76 2,511 Creditors: amounts falling due within one year Derivative liabilities held at fair - (7) (87) - (94) value through profit or loss Other creditors (8,781) (106) (30) (162) (9,079) Net current (liabilities)/assets (8,169) 68 1,525 (86) (6,662) Net assets 41,259 34,056 11,172 12,364 98,851 . Shareholders' funds Share capital 430 336 133 176 1,075 Share premium - - 1,290 - 1,290 Special reserve 37,241 28,203 8,678 11,787 85,909 Capital redemption reserve 73 78 19 155 325 Capital reserve 3,316 5,307 1,391 238 10,252 Revenue reserve 199 132 (339) 8 - Shareholders' funds 41,259 34,056 11,172 12,364 98,851 Net asset value per ordinary share Basic - note 5 112.1p 116.8p 109.4p 102.9p AT 31 MAY 2012 Fixed assets Investments held at fair value 46,520 33,733 9,617 8,732 98,602 through profit or loss Current assets Derivative assets held at fair value - - 374 - 374 through profit or loss Debtors 393 180 8 76 657 Cash, short-term deposits and cash 189 512 1,343 5 2,049 held at brokers 582 692 1,725 81 3,080 Creditors: amounts falling due within one year Derivative liabilities held at fair - - (658) - (658) value through profit or loss Other creditors (8,177) (645) (45) (161) (9,028) Net current (liabilities)/assets (7,595) 47 1,022 (80) (6,606) Net assets 38,925 33,780 10,639 8,652 91,996 . Shareholders' funds Share capital 451 357 135 128 1,071 Share premium - - 1,290 - 1,290 Special reserve 39,621 30,624 8,787 8,128 87,160 Capital redemption reserve 73 78 19 154 324 Capital reserve (1,372) 2,476 758 239 2,101 Revenue reserve 152 245 (350) 3 50 Shareholders' funds 38,925 33,780 10,639 8,652 91,996 Net asset value per ordinary share Basic - note 5 100.0p 108.1p 103.1p 102.5p INVESCO PERPETUAL SELECT TRUST PLC CONDENSED BALANCE SHEET continued GLOBAL UK EQUITY BALANCED MANAGED EQUITY INCOME RISK LIQUIDITY TOTAL £'000 £'000 £'000 £'000 £'000 AT 30 NOVEMBER 2011 Fixed assets Investments held at fair value 45,529 32,772 10,873 8,380 97,554 through profit or loss Current assets Debtors 279 238 3 68 588 Cash, short-term deposits and cash 83 559 207 - 849 held at brokers 362 797 210 68 1,437 Creditors: amounts falling due within (6,250) (185) (26) (261) (6,722) one year Net current (liabilities)/assets (5,888) 612 184 (193) (5,285) Net assets 39,641 33,384 11,057 8,187 92,269 . Shareholders' funds Share capital 458 359 137 117 1,071 Share premium - - 1,290 - 1,290 Special reserve 40,263 30,840 9,086 7,657 87,846 Capital redemption reserve 73 78 19 154 324 Capital reserve (1,391) 1,987 909 233 1,738 Revenue reserve 238 120 (384) 26 - Shareholders' funds 39,641 33,384 11,057 8,187 92,269 Net asset value per ordinary share Basic - note 5 100.1p 106.1p 104.2p 102.4p . INVESCO PERPETUAL SELECT TRUST PLC CONDENSED CASH FLOW STATEMENT SIX MONTHS ENDED SIX MONTHS ENDED YEAR ENDED 30 NOVEMBER 30 NOVEMBER 31 MAY 2012 2011 2012 £'000 £'000 £'000 Total return before finance costs 9,431 (6,495) (4,470) and tax Adjustment for (gains)/losses on (7,833) 7,080 6,283 investments Adjustment for (gains)/losses on (689) - 66 derivatives Adjustment for exchange losses 29 77 46 Scrip dividends received as income - (14) (18) Decrease in debtors 138 160 145 (Decrease)/increase in creditors (15) 194 391 Overseas tax (48) (40) (142) Net cash inflow from operating 1,013 962 2,301 activities Servicing of finance (56) (78) (140) Taxation 6 15 (44) Net financial investment 1,083 5,362 5,534 Equity dividends paid (1,350) (1,107) (2,509) Net cash inflow before management 696 5,154 5,142 of liquid resources and financing Management of liquid resources - - - Financing Shares bought back (1,116) (1,725) (2,458) Increase/(decrease) in bank 177 (2,903) (1,400) borrowings (Decrease)/increase in cash (243) 526 1,284 Reconciliation of net cash flow to movement in net debt (Decrease)/increase in cash (243) 526 1,284 Exchange movements (29) (77) (46) Cash movement from changes in debt (177) 2,903 1,400 Movement in period (449) 3,352 2,638 Net debt at beginning of year (5,589) (8,227) (8,227) Net debt at end of period (6,038) (4,875) (5,589) Analysis of changes in net debt 31 May exchange cash 30 NOV 2012 movements flow 2012 £'000 £'000 £'000 £'000 Cash, short-term deposits and cash 2,049 (29) (243) 1,777 held at brokers Bank loan (7,100) - (700) (7,800) Overdrafts (538) - 523 (15) Net debt (5,589) (29) (420) (6,038) INVESCO PERPETUAL SELECT TRUST PLC NOTES TO THE CONDENSED FINANCIAL STATEMENTS 1. Accounting Policy The condensed financial statements have been prepared using the same accounting policies as those adopted in the 2012 annual financial report, which are consistent with applicable United Kingdom Accounting Standards and with the Statement of Recommended Practice `Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued by the Association of Investment Companies, in January 2009. 2. Management Fees Invesco Asset Management Limited (`IAML'), is entitled to a basic fee (payable quarterly) in respect of each Portfolio (0.75% per annum of net assets in the case of the UK Equity, Global Equity Income and Balanced Risk Portfolios and 0.25% per annum of net assets in the case of the Managed Liquidity Portfolio). IAML is also entitled to receive performance fees in respect of the UK Equity and Global Equity Income Portfolios of 12.5% of the performance of the net asset value per relevant Share in excess of a hurdle of the relevant benchmark plus 1% per annum. The amount of the performance fee payable in any one year is limited to 0.75% of the net assets of the relevant Portfolio. Any underperformance of the benchmark, or performance above the cap, is carried forward to subsequent periods. After outperformance brought forward, the UK Equity Portfolio earned a performance fee of £22,000 in the period (six months ended 30 November 2011: £ 217,000 and in the year ended 31 May 2012: £388,000) which is charged wholly to capital. No performance fee was earned for the Global Equity Income Portfolio in the period (six months ended 30 November 2011 and in the year ended 31 May 2012: none). The management fees and finance costs are charged to the applicable Portfolio as follows, in accordance with the Board's expected split of long-term income and capital returns: PORTFOLIO REVENUE CAPITAL RESERVE RESERVE UK Equity 30% 70% Global Equity Income 30% 70% Balanced Risk* 30% 70% Managed Liquidity 100% - *Allocation changed on 8 February 2012 following change of investment objective and policy. Previously charged 100% to capital. Any entitlement to the investment performance fee which is attributable to the UK Equity or Global Equity Income Portfolio is allocated 100% to capital as it is directly attributable to the capital performance of the investments in those Portfolios. Further details of the above fees are disclosed in the 2012 annual financial report. 3. Tax expense represents the sums of tax currently payable and any deferred tax, with any tax payable being based on the taxable profit for the period. Investment trusts which have been approved under Section 1159 of the Corporation Tax Act 2010 are not liable for taxation on capital gains. 4. Basic Return per Ordinary Share Basic revenue, capital and total return per ordinary share is based on each of the return on ordinary activities after taxation as shown by the income statement for the applicable Share class and on the following number of shares being the weighted number of shares in issue throughout the period for each applicable Share class: WEIGHTED AVERAGE NUMBER OF SHARES SIX MONTHS ENDED SIX MONTHS ENDED YEAR ENDED 30 NOVEMBER 2012 30 NOVEMBER 2011 31 MAY 2012 SHARE UK Equity 38,501,883 39,710,856 39,602,185 Global Equity Income 30,884,172 31,774,563 31,590,128 Balanced Risk 10,161,200 10,689,872 10,633,343 Managed Liquidity 8,834,920 8,215,987 8,148,347 5. Net Asset Values per Ordinary Share The net asset values per ordinary share were based on the following Shareholders' funds and shares (excluding treasury shares) in issue at the period end: AT AT AT 30 NOVEMBER 30 NOVEMBER 31 MAY 2012 2011 2012 £'000 £'000 £'000 PORTFOLIO SHAREHOLDERS' FUNDS UK Equity 41,259 39,641 38,925 Global Equity Income 34,056 33,384 33,780 Balanced Risk 11,172 11,057 10,639 Managed Liquidity 12,364 8,187 8,652 AT AT AT 30 NOVEMBER 30 NOVEMBER 31 MAY 2012 2011 2012 PORTFOLIO SHARES IN ISSUE AT PERIOD END UK Equity 36,805,777 39,601,495 38,941,883 Global Equity Income 29,163,994 31,454,464 31,236,703 Balanced Risk 10,213,045 10,613,223 10,321,915 Managed Liquidity 12,010,129 7,995,000 8,438,316 6. Movements in Share Capital and Share Class Conversion IN THE SIX MONTHS ENDED 30 GLOBAL NOVEMBER 2012 UK EQUITY BALANCED MANAGED EQUITY INCOME RISK LIQUIDITY Ordinary 1p shares (number) At 31 May 2012 38,941,883 31,236,703 10,321,915 8,438,316 Shares bought back into treasury - - - (1,115,000) Arising on share conversion: - July 2012 (225,099) (70,405) (376,842) 693,616 - October 2012 (1,911,007) (2,002,304) 267,972 3,993,197 At 30 November 2012 36,805,777 29,163,994 10,213,045 12,010,129 Treasury Shares (number) At 31 May 2012 6,163,000 4,488,000 3,125,000 4,452,216 Shares bought back into treasury - - - 1,115,000 At 30 November 2012 6,163,000 4,488,000 3,125,000 5,567,216 Average buy back price - - - 99.4p As part of the conversion process 51,578 deferred shares of 1p each were created. All deferred shares are cancelled before each period end and so no deferred shares are in issue at the start or end of a period. 7. Share Prices GLOBAL UK EQUITY BALANCED MANAGED EQUITY INCOME RISK LIQUIDITY PERIOD END 30 November 2011 86.5p 97.0p 92.5p 99.5p 31 May 2012 93.3p 102.8p 92.0p 99.8p 30 November 2012 111.3p 110.0p 102.0p 99.5p 8. Dividends on Ordinary Shares The first and second interim dividends were paid on 17 August 2012 and 16 November 2012 respectively: PORTFOLIO NUMBER OF DIVIDEND TOTAL SHARES RATE £'000 UK Equity First interim 38,941,883 1.15p 448 Second interim 38,716,784 1.00p 387 2.15p 835 Global Equity Income First interim 31,236,703 1.00p 312 Second interim 31,166,298 0.65p 203 1.65p 515 Dividends paid for the six months to 30 November 2012 totalled £1,350,000 (six months to 30 November 2011: £1,107,000). 9. It is the intention of the Directors to conduct the affairs of the Company so that it satisfies the conditions for approval as an investment trust company. 10. The financial information contained in this half-yearly financial report, which has not been reviewed or audited by the independent auditors, does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The financial information for the half years ended 30 November 2012 and 30 November 2011 have not been audited. The figures and financial information for the year ended 31 May 2012 are extracted and abridged from the latest published accounts and do not constitute the statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and include the Report of the Independent Auditors, which was unqualified and did not include a statement under section 498 of the Companies Act 2006. By order of the Board Invesco Asset Management Limited Company Secretary 30 January 2013 END -0- Jan/31/2013 07:00 GMT
INVESCO PERPETUAL SELECT TRUST PLC: Half-yearly Report
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