Invesco Perpetual Select Trust - Global Equity Income Share Portfolio

Global Equity Income

Rated Fund 2015-19. Invests in quality companies at the right price

The global equity income portfolio is one of four within the Invesco Perpetual Select Trust. It is a minnow at £60 million, but has performed reasonably well over the years.

It yields 3.7% and dividends are paid quarterly. The other portfolios are UK Equity, Balanced Risk and Managed Liquidity. They operate as standalone companies with different managers.

An attraction of the trust is that investors are able to switch between asset classes without triggering a disposal for capital gains purposes. Switches between the four portfolios can be made on a quarterly basis. Another positive is the board’s strict policy to control discounts and premiums. Over the past three years the widest discount to net asset value has been around 5% and the largest premium 7%.

Nick Mustoe, Invesco’s chief investment officer, has run Invesco Perpetual Select Global Equity Income since 2011. He decides on the asset allocation and draws on the expertise of the group’s relevant country managers when choosing individual stocks. His strategy is to invest in high-quality companies at attractive valuations.

He defines these businesses as those that can sustain profit margins and deliver positive returns through the economic cycle, with attractive franchises and balance sheets with a conservative level of debt. He sees growing and sustainable dividends as clear evidence of these sorts of companies.

Mustoe stresses his long-term approach and the need to weather short-term storms. Despite recent political upheavals, he remains an optimist. At the end of 2018, the portfolio’s highest exposures were to Europe and the US, at 38% and 33%, with the UK just 16% of the total.

Narrative and ratings content all as of 01 January 2019.

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Name
Invesco Perpetual Select Trust - Global Equity Income Share Portfolio
Manager
Invesco Fund Managers Limited
Type
Closed Ended Investment Company
ISIN
GB00B1DQ6472
Sector
Global Equity Income
Launched
23/11/2006
OCF
0.84 %
Risk Rating
5
3 Year Sharpe
1.01
3 Year Alpha
3.96
Yield
3.5 %
Benchmark
MSCI World GR GBP
Fund Size
£ 63.49 million
NAV
204
Gearing
105
Discount Premium
-1
The investment objective of the Global Equity Income Portfolio is to provide an attractive and growing level of income return and capital appreciation over the long term, predominantly through investment in a diversified portfolio of equities worldwide. The Portfolio will be invested predominantly in a portfolio of listed, quoted or traded equities worldwide, but may also hold other securities from time to time including, inter alia, fixed interest securities, preference shares, convertible securities and depositary receipts. There will be no rigid industry, sector, region or country restrictions, but for performance management purposes it is measured against the MSCI World Index (in Sterling).
Holding %
Royal Dutch Shell PLC Class A 3.31 %
Chevron Corp 3.16 %
BP PLC 2.99 %
Orange SA 2.88 %
Roche Holding AG Dividend Right Cert. 2.86 %
Total SA 2.81 %
Novartis AG 2.78 %
Pfizer Inc 2.75 %
United Technologies Corp 2.50 %
Taiwan Semiconductor Manufacturing Co Ltd 2.35 %
Region %
United States 35.32 %
Eurozone 22.92 %
United Kingdom 19.92 %
Europe - ex Euro 8.64 %
Sector %
Financial Services 24.40 %
Energy 16.04 %
Healthcare 12.46 %
Consumer Cyclical 11.92 %
Industrials 10.79 %
Technology 8.45 %
Consumer Defensive 7.06 %
Communication Services 5.55 %
Name
Invesco Fund Managers Limited
Address
RG9 1HH,, Oxfordshire, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Nick Mustoe
Joined 01/01/2013

Data provided by Morningstar.

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