Invesco Global Equity Income Trust posts 12-month gain of 27% with flexible, income-oriented strategy

The Invesco Global Equity Income Trust, a roughly £250 million equity-income vehicle, has returned more than 27% over the past 12 months, outpacing both its peers and the broader market. The stock-market-listed trust was formed last year after the restructuring of Invesco Select and is managed from Invesco’s Henley-on-Thames offices by Stephen Anness, head of global equities, and Joe Dowling.

Income remains a key objective, but the managers say the fund should deliver performance in all market conditions. "As managers, we're not wedded to one particular investment style," Anness said. "We're very much open-minded. We want a portfolio robust and flexible enough to extract returns from different parts of the market, according to where we see value." Dowling added that the 42 companies currently held share a common thread: they are well-run businesses with the potential to be bigger in five, 10 and 20 years and are attractively valued. The trust’s current annual dividend stands at about 3.4% of net assets. The portfolio spans fast-growing names such as Broadcom, which pay little or no dividend, providing capital gains, alongside dividend payers like Coca-Cola Europacific Partners and private equity group 3i, which together form a majority of the assets. A third strand covers companies in dividend recovery, including Rolls-Royce Holdings. "The company has undergone an unbelievable transformation," Anness said. "Whether it's nuclear power, defence or data centres, it's powering ahead and winning more business. From an investor's perspective, it's all rather exciting." Rolls-Royce shares have risen about 128% over the past year.

The managers maintain a flexible approach with a large universe to draw from. They have a pool of 140 stocks to pick from, plus another 100 companies under review, enabling them to rotate holdings as opportunities arise. Geographically, assets are skewed toward North America, with more than 20% of the portfolio comprised of UK names as well.

The board directs a dividend policy intended to deliver roughly 4% of net assets per year, with dividends paid quarterly. In the year ended May, dividends totaled 12.52p per share. So far this year, the first payment was 3.375p, up from 3.13p a year earlier. The shares trade at a small premium, just above £3.70, and ongoing charges run about 0.8%. The fund trades under the ticker IGET and carries the identification code B1DQ647.

Overall, the fund seeks to combine income generation with the potential for capital growth by blending fast-growing, dividend-friendly and recovery-oriented companies, aiming to deliver returns across market cycles while maintaining a disciplined, flexible approach.