Fund Profile


Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by Invesco Select: UK Equity. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

IVPU’s resilient dividend and wide discount makes it stand out relative to peers…

Invesco Select: UK Equity’s (UK:IVPU) defining characteristic, in our view, is the managers’ strategy of focussing on companies that are good quality, with sound fundamentals and strong cash generation. By carefully selecting stocks with strong liquidity, the managers remain active and maintain a portfolio of their highest-conviction ideas, across a range of sectors.

With plenty of diversity amongst underlying holdings and their respective markets, the managers believe that a unifying feature of all their holdings is that they exhibit strong or improving returns, have proven management teams, strong balance sheets and are trading at attractive valuations. The team aim to look past stock-market noise and focus on long-term prospects. They believe that the companies they have selected have the potential to strengthen their competitive positions in the year ahead, irrespective of the economic and market regime that will develop.

Echoing the willingness to take a long-term view, the board has a policy of contributing capital to support dividends. The resulting freedom engendered by the board enables the managers to invest for the highest total returns possible. In our view, as we discuss in the Dividend section, this feature also makes the trust a potential source of all-weather equity income.

IVPU has had a co-manager setup since April 2021. Ciaran Mallon joined James Goldstone on the trust, having worked closely together before on the same team. As we discuss in the Performance section, initially IVPU delivered good outperformance of the benchmark and peers. However, the volatility of 2022, and subsequently, has been challenging. We highlight that not only has the FTSE 250 Index underperformance of the FTSE 100 Index been a headwind for IVPU, but also Gearing. We note that James and Ciaran achieving a three-year performance track record together is less than a year away.

Kepler View

IVPU harnesses many of the advantages which make investment trusts excellent vehicles for long-term investors, including Gearing. James and Ciaran have absolute discretion to invest for the long term, aiming to deliver good total returns through stock selection while not being exposed to a narrow set of industry or style-specific drivers.

With the managers being purely fundamentals-focussed, shareholders must be prepared for the NAV to not necessarily closely track the benchmark (see Performance). Whilst James and Ciaran initially outperformed strongly since becoming co-managers, they suffered a period of underperformance last year. Our analysis shows that since the dramatic fall in UK equities in September 2022, IVPU has broadly performed in line with UK equities on a relative basis.

With a structure and strategy that enables the managers to invest in the best opportunities for the long term, at times embracing lower-yielding opportunities and/or mid and small-caps, with a Dividend yield of 4.6%, IVPU is likely to complement other UK Equity Income trusts and funds. However, since Russia’s invasion of Ukraine, IVPU’s discount has widened significantly. In our view, it is hard to identify a tangible catalyst for the discount to narrow in the short term, other than if the board started buying shares back. However, as we discuss in the Discount section, once market conditions become calmer again, the fundamental attractions of IVPU might be better recognised by the market. There is potential for the discount to NAV to narrow on a sustained basis, at least in line with the peer group average. The current discount to NAV of 15.8% compares to the peer group’s weighted average discount of 4%.


  • An attractive yield from an unconstrained, actively managed exposure to UK equities
  • Co-manager set-up, using advantages of the investment trust structure to maximise long-term returns
  • Significant discount to peers


  • UK could remain undervalued relative to peers for a protracted period
  • Gearing can exacerbate the downside, as well as enhance the upside
  • With net assets of c. £125m, the trust has some way to go before it is suitable for some professional wealth manager firms
Continue to Portfolio

Fund History

11 Jul 2023 Fund Analysis
IVPU’s resilient dividend and wide discount makes it stand out relative to peers…
09 Nov 2022 Fund Analysis
IVPU’s managers aim to provide a differentiated, all-weather option for equity income investors…
09 Feb 2022 Fund Analysis
A new force getting recognition in the UK Equity Income sector…
28 Jul 2021 Fund Analysis
IVPU’s new co-manager set up provides the best of both worlds...
16 Jun 2021 A better class of travel*
Sharing many features of a traditional family office, investment trusts offer a sophisticated, cost effective solution for managing family wealth...
11 Mar 2021 Flash update: Invesco Select & Invesco Income Growth
With a merger of Invesco Select UK Equity shares and Invesco Income Growth, we learn that the management team is also merging….
21 Oct 2020 A closer look at gold mining companies and ESG
In this article, we hear from James Goldstone - fund manager of Keystone Investment Trust and Invesco Perpetual Select Trust: UK Equity Share on assessing mining companies within an ESG framework...
03 Sep 2020 The unsung heroes of the stock market
Ciaran Mallon of Invesco outlines the case for the utilities sector here in the UK, which seems unconnected to the volatility created from the global COVID pandemic...
26 Aug 2020 Fund Analysis
IVI has robust revenue reserves in place, having raised its dividend each of the last 23 years…
30 Jul 2020 James Goldstone
James Goldstone manages a number of UK and pan-European equity mandates at Invesco’s Henley-on-Thames office, including Keystone Investment Trust and the UK Equity Share Portfolio of Invesco Perpetual UK Select Trust...
03 Jul 2020 Results analysis: Invesco Income Growth
Invesco Income Growth (IVI) avoided some of its benchmark's losses and shareholders benefited from a closing discount...
24 Jun 2020 Ciaran Mallon
An Invesco veteran, Ciaran runs assets of around £10bn including Invesco Income Growth Trust...
15 Jun 2020 Investment Trust outlook
As the scale of the Covid-19 pandemic unfolds, James Goldstone explains his investment approach, what it means for markets, the companies he owns in his investment trusts, and how they are positioned for what may lie ahead...
23 Apr 2020 Sucker punch
Two of our analysts debate the merits of equity income and alternative income trusts at this point in time...
15 Apr 2020 Hold fast
Investment trusts' revenue reserves could make them a vital stronghold for investors facing UK dividend cuts of as much as 47%....
08 Apr 2020 James Goldstone's UK equity strategy update
The sell-off across global markets has been widespread in recent weeks. Joanna Smith, UK Equities Product Director at Invesco, questions whether we have seen the market lows of this crisis yet...
23 Mar 2020 An approach to governance: creating long-term value for our clients
James Goldstone outlines why they advocate for proper and effective corporate governance and sustainable business practices within the Invesco UK Equities team...
18 Mar 2020 Fund Analysis
A well established equity income fund with a strong emphasis on the sustainability of dividends and a cautious approach to the prevailing macro environment...
17 Mar 2020 Driven by the prospects of businesses
Ciaran Mallon, UK Equites Fund Manager, describes his investment philosophy and why it’s more about picking the shares that go in the portfolio than about taking big economic views...
18 Dec 2019 The squeeze continues: how trust costs keep falling
As pressure on costs remains, we reveal which trusts have achieved the most significant reductions in 2019….
28 Aug 2019 Fund Analysis
IVPU’s returns have bounced back in 2019 thanks to a contrarian allocation to domestically-exposed UK stocks…
20 Jun 2019 Balancing risks of regulation in the UK Utilities sector
Companies backed by assets, with a history of paying dividends to shareholders? Or targets for overregulation? Ciaran Mallon, Fund Manager of Invesco Income Growth Trust plc, considers the case for regulated utilities.
26 Mar 2019 Fund Analysis
A well established equity income fund with a strong emphasis on the sustainability of dividends and a cautious approach to macro bets...
06 Feb 2019 Income for the long haul
With 'ISA season' looming we identify investment trusts which offer long-term, dependable income streams for yield-hungry investors...
13 Dec 2018 Efficiency is everything
With fee structures under increasing scrutiny, we analyse which trusts limit their costs without sacrificing standards...
05 Dec 2018 Surf's up
As rough markets drive share price volatility up, we use a proprietary statistical technique to highlight trusts which have rarely looked cheaper...
05 Dec 2018 The long term opportunity in domestic value
Invesco's Ciaran Mallon thinks the referendum has created a clear opportunity for UK investors...
04 Dec 2018 Fund Analysis
James Goldstone aims to identify undervalued companies and take advantage of the under-pricing...
03 Oct 2018 We can be heroes
Our analysis has uncovered the trusts which have generated a solid income through thick and thin - without compromising other aspects of performance...
03 Oct 2018 Fund Analysis
Invesco Income Growth is a cautiously-managed portfolio of UK equities, which aims to produce above inflation dividend growth but also capital growth in excess of the FTSE All Share...
27 Jun 2018 A winning combination
New research from Cass Business school helps explain why closed-ended funds have outperformed their open-ended peers in the major equity sectors since 2000...
13 Jun 2018 Still waters run deep
UK equity income trusts trade at a discount to their global-equity-income-focused counterparts, yet our research suggests this could be unjustified...
23 May 2018 Fund Analysis
Positioned for a rebound in valuations in companies exposed to the unloved UK domestic economy...
23 May 2018 Backing Blighty
We highlight trusts with a heavy focus on domestically focused UK equities...
22 Mar 2018 The search for discounted yield
We scour the investment trust universe for trusts offering chunky yields on a discount...
24 Jan 2018 Fund Analysis
A focused, high conviction portfolio with low turnover, managed with a conservative approach which generates a yield of 3.7% and has increased its dividend for 20 years consecutively...
26 Jul 2017 Apt student
Invesco CIO Nick Mustoe tell us he started out with just a university grant as seed capital for his first portfolio...
25 Jul 2017 Carpe discount
Our analysis shows that there is a right time, and a wrong time, to seize a trust which is languishing on a discount...
19 Jun 2017 The investment trust advantage...
Our event in June saw eight of the UK's most experienced fund managers discuss the outlook for each major asset class...
12 Jun 2017 Fund Analysis
21 May 2017 Brave new world
We ask the top managers in each sector, region and asset class where they see the opportunities in the months ahead...
21 Mar 2017 The new kids on the block...
We highlight the three newest managers to grace the UK equity sectors and how they have put their own individual stamps on the portfolios they've inherited...
21 Mar 2017 Fund Analysis
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