Fund Profile

Invesco Income Growth 26 March 2019

Disclaimer

Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by Invesco Income Growth. 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
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Overview

Invesco Income Growth (IVI) 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.

The manager, Ciaran Mallon, focuses on fundamental company research, and looks to invest in companies with a strong record of capital allocation and concern for minority shareholders’ interests. Ciaran has a slight value bias to his fundamentally driven bottom-up stock picking and sits in the well-resourced and highly-rated UK equities team based in Henley with whom he shares ideas.

Despite the difficult environment 2018 brought for equities, mainly due to threats of a trade war, rising interest rates in the US, and the continuous uncertainty surrounding Brexit, the trust performed strongly relative to peers. IVI outperformed both the UK Global Equity Income sector and the IA UK Equity Income sector, whilst staying in line with the FTSE All Share. This turnaround of performance has continued into 2019, and since the start of the year the trust has delivered 6.4% NAV returns, outperforming the peer group (6.1%), the OE peer group (4.4%) and only marginally less than the benchmark (7.2%).

Alongside the strong NAV performance, the trust continues to yield 4.2% and has the distinction of increasing its dividend in each of the last 20 years. Ciaran is fully committed to continuing this record, and places great importance on the sustainability of the earnings and dividends on the companies he buys.

The trust remains trading on a double-digit discount, presently sitting at c.15%. This is wide relative to the rest of the sector, where the weighted average discount is 3.2%.

William Sobczak
William joined Kepler Partners in February 2018 as an investment trust analyst. Prior to joining, William graduated from the University of Western Australia, with a BSc in Psychology.
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Fund History

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….
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…
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...
08 Jun 2020 Kepler Rated: Invesco Income Growth
IVI has grown its dividends for 24 consecutive years with a strong emphasis on dividend sustainability...
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%....
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….
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...
05 Dec 2018 Surf's up
As rough markets drive share price volatility up, we use a proprietary statistical technique to highlight trusts which are on unusually wide discounts...
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...
28 Aug 2018 Why patience is a virtue in UK equities
In a world where a single Twitter post can change the share price of a company, Invesco Perpetual's Ciaran Mallon explains why he focuses on a longer investment horizon...
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...
05 Apr 2018 The search for discounted yield
We scour the investment trust universe for trusts offering chunky yields on a discount...
04 Apr 2018 A question of conviction
24 Jan 2018 Fund Analysis
A focused portfolio with a conservative approach yielding 3.7% which has increased its dividend for 20 years consecutively...
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