Invesco Global Equity Income Trust delivers 27% return as managers pursue flexible approach

Invesco Global Equity Income, a £250 million investment trust formed last year from the restructuring of Invesco's Select fund, posted a total return of about 27% over the past 12 months, according to the fund's managers. By comparison, the average global equity income trust gained roughly 10.4% and the FTSE World Index advanced about 16% in the period.

Managed from Invesco’s Henley-on-Thames offices by Stephen Anness, head of global equities, and Joe Dowling, the trust pursues an open-minded, flexible approach designed to extract returns from different market segments. Anness says the portfolio is built to be robust across conditions, while Dowling notes the team uses a universe of around 140 stocks with roughly 100 under ongoing review to allow rotation into areas of perceived value.

The portfolio currently holds 42 companies, with a bias toward both growth opportunities and income payers. The stock mix includes fast-growing names such as Broadcom, which tend to offer capital appreciation rather than dividends, alongside dividend payers like Coca-Cola Europacific Partners and private equity group 3i. Rolls-Royce Holdings sits within a category described by the managers as a dividend recovery story, a position they say reflects the company’s progress in power, defence and data-centre markets. Over the past year, Rolls-Royce shares have surged about 128%. The trust’s broad universe and rotation strategy underpin its aim of delivering returns in different parts of the market as opportunities emerge.

Geographically, North America dominates the portfolio, though more than 20% of assets are in UK equities. The fund’s dividend strategy targets an annual payout of about 4% of net assets, meaning dividends can rise as the asset base grows. In the last financial year to end-May, dividends totaled 12.52p per share, and this year’s first payment was 3.375p versus 3.13p a year earlier. At current levels the shares trade at a small premium above £3.70, and ongoing charges are about 0.8%. The stock market ticker is IGET and the identification code is B1DQ647.

The team manages a broad pipeline of potential ideas, with 140 stocks on the watch list and around 100 under review at any time. Dowling says this framework allows them to rotate the portfolio into areas of value as market conditions evolve, balancing growth and income while seeking to protect capital across cycles. The trust’s positioning reflects a broader trend toward vehicles that combine income with capital appreciation potential, rather than focusing solely on yield. While the dividend plays a meaningful role, the managers emphasize that the ultimate objective is to deliver a resilient performance profile in a range of market environments.

As a listed investment trust, Invesco Global Equity Income combines a global equity approach with an income objective, aiming to provide both current yield and long-term growth. Investors can gauge the fund’s positioning through its yield and valuation metrics, as well as the dynamic stock-selection process that underpins its performance history.

The fund’s current emphasis on U.S. and other North American equities aligns with broader market trends, while a meaningful allocation to UK stocks adds a domestic bid in a diversified global portfolio. The mix reflects the managers’ view that high-quality businesses with sustainable earnings will be able to compound value over five, ten and 20 years, even as market cycles shift.

Overall, Invesco Global Equity Income stands out for its willingness to adjust the mix as opportunities arise, rather than adhering to a single investment style. The strategy appears to be resonating with investors who seek a blend of income and capital growth, delivered through a globally diversified, actively managed portfolio.

Invesco Global Equity Income is part of a broader set of income-oriented vehicles that aim to outperform traditional benchmarks by combining growth-oriented holdings with steady dividend payers. The fund’s management team contends that owning a mix of growth and income opportunities, and rotating into new ideas as they become value opportunities, is essential to sustaining performance across varied market regimes. This approach is designed to capture upside from faster-growing sectors while preserving downside protection through dividend-supportive holdings and preserved liquidity.

For investors evaluating global income funds, the trust’s disciplined framework offers a compelling example of how managers can seek to align yield with long-term capital appreciation, using a measured rotation of holdings and a broad, flexible research process to identify opportunities across markets. The structure’s cost efficiency, with ongoing charges of about 0.8%, adds another consideration for cost-conscious investors weighing total return potential.