Complete your registration today for a chance to win £50 John Lewis vouchers in our weekly draw Enter now
Fund Profile

Invesco Select: Global Equity Income 23 January 2024

Disclaimer

Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by Invesco Select: Global Equity Income. 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.

Overview
IVPG’s proposed merger with IVPU will bring with it the inherent benefits of scale…
Overview

Invesco Select Global Equity Income (IVPG) has been managed by Stephen Anness since January 2020. Stephen has transformed the Portfolio to provide investors with a balanced, all-weather strategy to minimise exposure to stylistic biases or specific factor risks, with the aim of delivering a growing level of income alongside long-term capital appreciation.

In December 2023, the board announced the proposed merger of assets within the Invesco Select Trust. The proposals are for IVPG to absorb the Invesco UK Equity (IVPU) share class and the smaller share classes. In addition, the board intends to amend the dividend policy in order to pay at least 1% of cum-income net asset value, paid quarterly, utilising the revenue and capital reserves when appropriate (see Dividend). This will lead to a substantial increase in the yield IVPG offers whilst allowing Stephen to continue to run the portfolio to the same strategy which has delivered strong Performance in recent years. Since he took over in 2019, IVPG has generated a NAV total return of 54.4% compared to the 37.2% and 49.1% generated by the global equity income sector and the MSCI World Index.

Additionally, the board intends to tighten the discount control policy, which will seek to keep the discount at less than 10%, in normal market conditions. The board believes the consolidation should have a beneficial impact on liquidity and a narrowing of the Discount, which is currently 9.6%. Net assets will increase, allowing IVPG to spread fixed costs over an enlarged assets base which will reduce Charges.

Analyst's View

This is a significant package of proposals which brings with it several advantages. Chiefly, we believe the new dividend policy will be attractive to income-seeking investors by boosting the yield whilst allowing Stephen to continue to follow the investment strategy that has delivered such attractive total returns.

Importantly, the investment strategy will remain the same, and we think Stephen has demonstrated the value of his balanced strategy over the long term, delivering impressive performance. The current economic environment remains uncertain, and we believe his well-balanced, benchmark-agnostic approach and focus on fundamentals could continue to do well. Performance has been helped at different times by a well-timed reduction in gearing and an increased allocation to lower-leveraged companies with greater predictability of cash flows. It was also helped in 2023 by Stephen identifying a range of attractively valued opportunities further down the market cap spectrum which had been overlooked by the market—particularly those exposed to AI. With interest rates expected to fall by the end of the year, a softer landing continuing to be priced and investor sentiment improving, these mispriced companies and IVPG may be well placed to benefit, in our view.

We believe the proposed introduction of a tighter discount control policy and the increased simplicity of the investment proposition may provide a catalyst for the discount to narrow.

Bull

  • Discount significantly wider than long-term average
  • Very strong and consistent performance
  • Offers genuine diversification opportunity versus alternative global strategies

Bear

  • OCF currently higher than sector average, although completion of merger will reduce costs
  • May lag in strong style-driven market environments
  • Low current yield compared to alternative income strategies
Continue to Portfolio
2024 Kepler Growth Rated Fund

This trust has been awarded a rating by Kepler Trust Intelligence for growth... Find out more

Fund History

23 Jan 2024 Fund Analysis
IVPG’s proposed merger with IVPU will bring with it the inherent benefits of scale…
17 Jan 2024 Top of the Pops
We reveal the winners of our investment trust ratings for 2024…
10 Jan 2024 Definitely maybe
Fund flows and discounts may shed some light on a once-in-a-generation opportunity…
30 Jun 2023 Stock spotlight: Broadcom - investing for a chatbot world
AI chatbots allow us to interact with technology in smarter ways but there is a price – the billions that will be invested in the software and the hardware needed. AI will demand ever-greater processing power. One company involved in the AI revolution is California-headquartered Broadcom. Head of Global Equities, Stephen Anness, shares his thoughts in this short read...
11 May 2023 Tipping point
Battered growth strategies have staged a comeback recently, but what happens now?
05 May 2023 Fund Analysis
IVPG’s historically-wide discount may present an opportune entry point, given the managers’ strong performance track record…
25 Aug 2022 Cash and global equity
How Invesco Select Trust can help investors navigate through tough times…
19 Aug 2022 Fund Analysis
IVPG’s relative performance has been improving, making the discount widening to c. 12% seem anomalous...
11 May 2022 What is an investment trust?
The ins and outs of closed-ended funds and how they can support your investments…
22 Mar 2022 Fund Analysis
IVPG’s current discount potentially offers a good opportunity to access a differentiated trust…
17 Nov 2021 Fund Analysis
A new team means IVPG has a more balanced portfolio, but the same focus on dividend growth…
16 Jun 2021 A better class of travel*
Sharing many features of a traditional family office, investment trusts offer ordinary investors a cost-effective solution to 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….
04 Dec 2020 Biden victory and vaccine hopes spur rotation into value stocks
Stephen Anness digests the latest headlines from around the world and what this could mean looking ahead for Invesco Perpetual Select Trust plc: Global Equity Income...
01 Sep 2020 What are the key market dynamics today?
Stephen Anness, manager of Invesco Perpetual Select Trust plc’s Global Equity Income share portfolio, considers the outlook for global equities after a roller-coaster year like no other…
03 Oct 2019 Taking back control - the ultimate flexible fund
We examine the benefits of Invesco Perpetual Select Trust's unusual structure...
03 Apr 2019 Nice guys finish first
We review the rise of ESG, its impact on investment trusts, and the various ways ESG has evolved in the trust world...
18 Feb 2019 Fund Analysis
Comprised of just over 50 stocks, IVPG looks to grow income and capital through holding high quality companies...
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...
01 Oct 2018 Fund Analysis
IP Select Global Equity Income aims to offer a growing level of income and capital appreciation over the long term, through a concentrated but diversified portfolio of global equities...
14 Jun 2018 Fund Analysis
A solid track record, a yield of 3.2%, and year on year dividend growth since launch...
16 Mar 2018 Fund Analysis
A global equity income offering with an experienced management team and an active discount control policy...
15 Mar 2018 A fund for all seasons?
We examine the Invesco Perpetual Select Trust, which allows investors to switch between four share classes to suit their aims without crystallising gains...
12 Oct 2017 Roaring back…
We analyse the drivers behind the significant outperformance of global active managers in 2017, following what was a very poor year for them in 2016...
21 Jun 2017 Keystone Investment Trust
A top-performing UK equity trust that has recently undergone a change in managers...
11 May 2017 Video: Fixed Interest investment companies update
Invesco Perpetual fixed interest portfolio manager Rhys Davies, discusses the improving global outlook...
04 Apr 2017 VIDEO: Meet the managers...
Invesco Perpetual's Mark Barnett and four of his fellow managers discuss their approach to managing money, and their market outlook...
31 Mar 2017 Video: James Goldstone
James Goldstone, UK Equities Fund Manager at Invesco Perpetual, outlines his approach...
16 Mar 2017 Having your cake and eating it too?
We look into the new fad of trusts paying their dividends out of capital and analyse whether or not it really is a sustainable strategy...
22 Feb 2017 Into the wilderness...
In this detailed study of the global equity sectors, we analyse how managers are positioned in a world of high valuations and seismic political changes...
09 Feb 2017 Fund Analysis
A global equity income offering with an experienced management team and an active discount control policy...
07 Dec 2016 Video: City Merchants High Yield Trust Limited
Rhys Davies discusses high yield bond opportunities, looking at what has been driving performance, alongside his approach and outlook.
06 Dec 2016 Video: Invesco Perpetual Select Trust Global Equity Income Share Portfolio
Nick Mustoe shares his thoughts on the Global Equity Income Share Portfolio of the investment trust, and gives his views on the regions and sectors he currently favours.
05 Dec 2016 Video: Invesco Perpetual Enhanced Income Limited
In his latest video, Rhys Davies discusses opportunities found in 2016 for the investment company, as well as giving his outlook for the coming months.
10 Sep 2016 Video: UK equities investment trusts update
John Richards, product director, UK equities, discusses the implications of the UK's referendum on membership of the European Union
09 Sep 2016 Video: Invesco Income Growth Trust
Fund manager Ciaraon Mallon discusses the portfolio and his approach to asset allocation...
06 Sep 2016 Video: Invesco Asia Trust
In this video Invesco Perpetual's Ian Hargreaves provides an economic outlook, and explains his approach to managing the portfolio...
02 Jun 2016 Video: Jonathan Brown, Invesco UK Smaller Companies Trust
23 May 2016 Video: Ciaran Mallon
The Invesco Income Growth Trust manager explains his current portfolio positioning...
05 May 2016 Mark Barnett: Two distinct routes to a sustainable income
Contrasting portfolio construction of The Edinburgh Investment Trust plc and Perpetual Income and Growth Investment Trust plc offers choice to income-seeking investors
03 May 2016 Video: Nick Mustoe
Invesco CIO Nick Mustoe explains his strategy on global equities...
23 Feb 2016 Are we entering a new global recession?
Two leading investment strategists put the case for and against a hard landing for the global economy...
11 Feb 2016 View from the top: Jim Pettigrew
We meet the chairman of one of the UK's largest investment trusts...
View all

Welcome to Kepler Trust Intelligence

Please enter a valid email address
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid email address
{{item.msg}}
Please check your email. If an account exists you'll be sent instructions on how to reset your password.
To ensure that we are able to provide content which is appropriate for you, please tell us a little about yourself.
Please choose an option
{{item.msg}}
Please enter a company name
{{item.msg}}
Please enter a location name
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a platform
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a trust
{{item.msg}}
?
The information contained herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). The investment funds referred to herein have not been registered in the United States under the Investment Company Act of 1940 and units or shares of such funds are not registered in the United States under the Securities Act of 1933.
Please confirm
{{item.msg}}
Please select an option
{{item.msg}}
See benefits
A free Kepler Trust Intelligence account allows you to access premium content including the ‘Kepler View’ – our verdict on the trusts we cover – and historical research so you can see how our view has changed over time. An account also unlocks useful facilities like the ‘follow’ button which lets you keep track of the trusts you’re interested in and as a logged in user you can also download PDFs of our research, and choose the layout of the page you’re reading to suit your preference. We will not share your details unless you give us permission to do so, and we won’t bombard you with emails – we only send one a week.
Please select an option
{{item.msg}}
Please enter your first name
{{item.msg}}
Please enter your last name
{{item.msg}}
Please enter a valid email address
An account already exists with this email - have you forgotten your password?
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid password
{{item.msg}}
How will this information be used? Your answers help us to tailor our content to relevant investment trusts, and to ensure that the asset allocation and portfolio strategy research we produce is appropriate to our userbase.
Our Website uses Cookies Cookies are small text files held on your computer. They allow us to give you the best browsing experience possible and mean we can understand how you use our site. Some cookies have already been set. You can delete and block cookies, but parts of our site won’t work without them. By using our website you accept our use of cookies. For further information please refer to the Kepler Privacy Notice.
Need help?

One more thing...

Did you know, you can 'follow' individual trusts on Kepler Trust Intelligence? Use the functions below to set up alerts and we'll send you research and updates on your chosen trusts.

Suggested trusts to follow

Browse all funds
Need help?
Current Site Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.