Invesco Global Equity Income trust posts 27% 12-month gain with flexible approach

The Invesco Global Equity Income trust, a £250 million global equity income investment trust formed last year from the restructuring of Invesco Select, has posted a 12-month total return of about 27%. The trust is managed from Invesco’s Henley-on-Thames offices by Stephen Anness, head of global equities, and Joe Dowling, who lead a team that emphasizes flexibility and cross-market opportunities rather than a single investment style.

Anness said the team is open-minded: 'We’re very much open-minded. We want a portfolio robust and flexible enough to extract returns from different parts of the market,' he said. Dowling added: 'What the 42 companies we hold in the trust have in common is that they are really good businesses which will be bigger in five, ten and 20 years – and which, in our eyes, are attractively valued.' The fund yields about 3.4% in annual income, with dividends paid quarterly as part of its risk-managed approach to delivering income alongside capital growth.

Beyond the income objective, the managers stress flexibility and rotation. The trust’s portfolio centers on about 42 holdings, drawn from a universe of roughly 140 stocks with another 100 under review. The managers rotate holdings as opportunities emerge, rather than sticking to a single investment style. Geographically, the assets tilt toward North America, with more than 20% of holdings in UK stocks.

Broadcom, a US technology group that often pays little or no dividend, sits alongside dividend-focused names such as Coca-Cola Europacific Partners and private equity owner 3i; together they form the majority of the fund’s assets. The final segment of the portfolio comprises companies in dividend recovery mode, including Rolls-Royce Holdings, which Anness says has undergone an unbelievable transformation. 'Whether it’s nuclear power, defence or data centres, it’s powering ahead and winning more business,' he said. Over the past year, Rolls-Royce shares have jumped about 128%.

The managers maintain a broad reference universe—about 140 stocks—with roughly 100 under active review, allowing them to rotate holdings when new areas of value become attractive. North America remains the biggest geographic anchor for the trust, but more than a fifth of assets are allocated to UK companies as part of the diversification strategy.

Dividend and cost structure are central to the trust’s framework. The board targets an annual income equal to about 4% of net assets (assets minus borrowings). In the last financial year to May, dividends totalled 12.52p per share, paid quarterly. So far this year, the trust has paid an initial dividend of 3.375p, up from 3.13p the year before. Shares currently trade at a small premium to net asset value and are priced a little above £3.70. Ongoing charges are about 0.8%. The fund trades under the ticker IGET and carries the identification code B1DQ647.

Anness and Dowling emphasize that the portfolio’s design aims to deliver performance across market conditions by blending fast-growth opportunities with income and value plays. 'We’re not wedded to one investment style, and we’ll rotate as opportunities arise,' Dowling said. As markets evolve, the fund’s managers say the focus remains on holding high-quality businesses likely to grow over the next five to 20 years while seeking attractive valuations.