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Fund Profile

Invesco Select: Global Equity Income 22 March 2022


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.

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Invesco Select Global Equity Income’s (IVPG) investment objective is to deliver long-term capital appreciation in addition to an attractive and growing level of income. For the ten years to the end of 2019, the shape and style and process of this global equity portfolio has been broadly the same, with a relatively concentrated number of holdings (typically around 50) and a strong value bias. However, with a new team taking responsibility in January 2020, there has come a new approach (see Portfolio).

Invesco Select Global Equity Income, under Stephen Anness, aims to have a balanced approach to portfolio construction, avoiding excessive style or factor risks, which should mean IVPG will have the ability to outperform in a wider range of market environments. Stephen is lead manager and decision maker for the trust and is supported by a team of five analysts and fund managers, who together look across global equity markets to find companies which pay a healthy dividend now, but are also able to reinvest cashflows in their businesses at high rates of return to grow their dividends faster than the market in the medium term.

Whilst stock picking is valuation-led, this is by no means a ‘value’ investment process. According to Morningstar statistics, relative to the benchmark, IVPG is underweight value and growth, but overweight core (56.2% vs 38.7%).

Aside from allowing a relatively concentrated portfolio (around 40 holdings), IVPG also embraces other structural aspects that investment trusts can potentially use to deliver superior returns for shareholders. These include Gearing (currently 9%), a ‘zero tolerance’ discount policy which has been used to minimise discount volatility, and the use of capital to support the Dividend. This last aspect helped IVPG’s board achieve its aim of at least maintaining the previous year’s dividend, delivering a dividend increase for the financial year ending May 2022 of 0.7% despite a c. 43% fall in revenue generation.

Analyst's View

As an income focussed investment trust, IVPG’s dividend is undeniably an important consideration for prospective investors, and in our view the ability and willingness of the board to support the dividend through capital payments is an attraction. Based on the current share price, the dividend of 7.1p equates to a dividend yield of c. 3.3%. This is lower than the AIC Global Equity Income peer group’s 3.8% simple average dividend yield, but potentially reflects the managers’ central thesis that investing for a high yield today isn’t necessarily the best route to high total returns. We discussed this precise issue recently here.

Whilst the dividend for the year ending May 2021 was only 55% covered by revenues, global dividends have bounced back since then, so we would expect cover to be better in the current financial year. Should IVPG’s managers achieve their aim of investing in companies which are in a position to grow their dividend faster than the market, revenue growth should start to improve and potentially give the board an opportunity to grow dividend payments at a higher rate in the future.

The concentrated portfolio and stock picking approach means that IVPG is a differentiated trust in the Global Equity Income sector. We believe that, thanks to the pragmatic investment process employed by the team, performance will not be influenced by a single investment factor such as growth or value, and IVPG is therefore more likely to deliver outperformance in a wider range of market conditions. As such it merits attention for those who wish to take a long term, global approach to equity income.


  • Stephen Anness has a good long-term track record of outperforming his benchmark for the open-ended funds he has run in the past
  • Balanced approach, with a focus on dividend growth, offers differentiated exposure within AIC Global Equity Income sector
  • ‘Zero-tolerance’ approach to discount means the trust is much more liquid than its size would suggest


  • Lower initial yield than that of peer group
  • New team have a short track record as managers of an investment trust
  • Gearing can exacerbate the downside
Continue to Portfolio
2024 Kepler Growth Rated Fund

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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
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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
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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
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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...
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