- Invesco Head of Global Equities Stephen Anness will manage new ‘IGET’ trust
- The relaunch comes in wake of successful proposals to consolidate Invesco Select Trust plc into single global equity income portfolio
- Trust to target capital growth and income, and include a new 4% dividend target
- A new buyback policy may be deployed when the discount reaches 10%.
Invesco today announces the relaunch of the Invesco Global Equity Income Trust (ticker: IGET), focusing on investing in global equity income opportunities.
The relaunch of the £200m Trust follows shareholder approval of proposals on 16 April 2024 to merge the Invesco Select Trust plc’s four share classes into the global equity income portfolio, managed by Stephen Anness.
The relaunched Invesco Global Equity Income Trust will benefit from the combined resources of Invesco’s global equities franchise. The team of 10, led by Stephen, collectively manages £14.3bn worldwide, including £9.8bn in global equity income mandates.
Under the management of Stephen and the team, the Invesco Select Global Equity Income Trust returned 48.5% over the past 3 years against a benchmark return of -31.6% (based on NAV returns against the MSCI AC World Index).2
New Investors in the Company will benefit from the high-conviction, high active share, and globally diversified portfolio in a closed-end structure that existing investors have benefitted from. Additionally, a new 4% dividend target set by the Board ensures a focus on delivering dependable income.
The dividend policy will have no impact on portfolio management as it will be funded from portfolio income and supplemented from reserves if required. The Board has also introduced a new discount policy and will consider share buybacks should the discount reach 10%.
The Trust will continue to make use of gearing, allowing the management team to tactically capitalise on favourable market conditions and attractive investment opportunities. It will aim to deliver growth in capital and income by focusing on quality, cashflow and price:
- Quality: Good businesses strong enough to thrive through the cycle.
- Cashflow: The best measure of a company’s health, allowing the company to pursue opportunities which enhance shareholder value.
- Price: An ability to buy the company at a price that represents a significant discount to intrinsic value.
Within this framework, Stephen and the team pursue three pools of opportunity: ‘Dividend Compounders’, companies with a robust history of attractive and growing dividend yields; ‘Dividend Growth’ stocks, companies with low yields but clear per-share value creation; and ‘Dividend Restoration’ opportunities, where companies have strong track records but are undergoing temporary setbacks.
Victoria Muir, Chair of the Invesco Global Equity Income Trust said: “Following the approval of proposals to consolidate the Invesco Select Trust plc from four portfolios into the global equity income strategy, we are pleased to announce the relaunch of this Trust. We believe ‘IGET’ will deliver greater value to shareholders through increased scale and liquidity, while maximising capital growth and income opportunities.
“The Trust benefits from the continuity of Stephen’s management and the extensive capabilities and rigorous investment process of Invesco’s global equities team. The new, simplified structure and dividend target gives the Trust a distinctive positioning within the sector and should provide investors with confidence in the clear focus on reliable income and growth in all market conditions.”
Stephen Anness, manager of the Invesco Global Equity Income Trust and Head of Global Equities added: “In unpredictable times investors want stable income and persistent growth, and ’IGET’ aims to deliver just that. Through our proven process we will continue to identify companies that can deliver solid cashflows at attractive valuations, and with the quality to weather volatility, providing investors with greater confidence in all market conditions. Given the opportunities we are seeing in this environment, we expect to make use of gearing tactically to enhance our ability to capitalise on these.”
