Fund Profile

Invesco Select: UK Equity 28 August 2019

Disclaimer

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.

Overview
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Overview

IP Select UK Equity Shares portfolio (IVPU) invests in UK equities with a highly active value strategy. The manager, James Goldstone, takes a contrarian approach, aiming to identify companies which in his view are under-appreciated by the market.

James’ current main focus has been on companies exposed to the UK economy and consumer, which he thinks have been egregiously undervalued thanks to worries about Brexit, particularly among overseas investors, leading to indiscriminate selling of UK-facing companies. However, this exposure is balanced out by holdings with international, mainly dollar earnings, which James thinks are undervalued for other reasons, which we explain in the portfolio section of this note. The oil and gas producers are a key example.

The period from 2016 to 2018 was a tough one for the trust thanks to the manager's domestic value play not coming off. However, in the 2019 rebound the trust has kept pace with the index and is ahead of its peers, helped by its cyclical tilt, gearing and higher weighting to large caps than the peer group.

The board aims to keep the discount close to NAV and has been highly active in using buybacks to do so. This means that even when the NAV total returns have been disappointing, investors have not suffered from a widening discount too, as they have with some other trusts in the sector. The current discount stands at 0.8% compared to a sector average of 10.2%.

Gearing has tended to be at the upper end of the permitted range under James’ management. This debt is not structural but reflects the valuation opportunity the manager sees in the UK market, and has come down in recent months as the market has rallied.

The dividend yield is 3.9%, paid quarterly, which is higher than any other trust in the UK All Companies sector. The board’s intention is to at least maintain the dividend in each year going forward and it has backed this up by using capital reserves to pay when necessary.

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Fund History

11 May 2022 What is an investment trust?
The ins and outs of closed-ended funds and how they can support your investments…
09 Feb 2022 Fund Analysis
A new force getting recognition in the UK Equity Income sector…
09 Feb 2022 Is it the UK’s time to shine?
IVPU offers a uniquely flexible approach to UK equities…
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 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….
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 Portfolio on assessing mining companies within an ESG framework...
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...
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 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...
03 Oct 2019 Taking back control - the ultimate flexible fund
We examine the benefits of Invesco Perpetual Select Trust's unusual structure...
28 Aug 2019 Fund Analysis
IVPU’s returns have bounced back in 2019 thanks to a contrarian allocation to domestically-exposed UK stocks…
13 Dec 2018 Efficiency is everything
With fee structures under increasing scrutiny, we analyse which trusts limit their costs without sacrificing standards...
04 Dec 2018 Fund Analysis
James Goldstone aims to identify undervalued companies and take advantage of the under-pricing...
26 Jul 2018 Is the UK keeping this investor awake at night?
Over a year on from taking over his UK equities trust mandates, Invesco's James Goldstone discusses his outlook for UK markets...
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...
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 consider the outlook for UK equities as they endure their Brexit induced 'darkest hour'...
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...
13 Sep 2017 Big Issue(rs)
We highlight the UK equity trusts that have issued and bought back the most shares over the course of 2017 so far and how these actions have affected shareholders...
02 Aug 2017 Carpe Discount…
We analyse just how much discount movements have on shareholder returns in the AIC UK All Companies sector...
29 Jun 2017 Brave new world
We find out how the outlook appears today to you, and ask the top managers in each sector, region and asset class where they see the opportunities in it...
21 Jun 2017 Fund Analysis
A differentiated investment trust that has undergone a change in a management but still offers exposure to high quality companies...
21 Jun 2017 Keystone Investment Trust
A top-performing UK equity trust that has recently undergone a change in managers...
12 Jun 2017 MAYDAY!
As the Conservative party founders, we examine the impact of last week’s disastrous election on trusts...
07 Jun 2017 Omnishambles...
Given the huge levels of political-induced uncertainty, we analyse recent drivers and themes within the UK equity market ahead of the upcoming election
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...
22 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...
View all

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