Global investment trusts with Invesco

Why invest with us?

  • We’re completely focused on finding investment opportunities for you that others have missed. We do this through meticulous research backed by decades of experience.
  • We believe our long-term approach to seeking out the strongest returns could help you make the most of the growth and income potential from financial markets.
  • Almost all of our investment trusts pay an income decided on by the board, which can be paid from income earned or from capital, so may provide a consistent level of income.

Which investment trusts can you invest in?

We offer four investment trusts across a large and diverse range of strategies. Whichever one is right for you, each has the same commitment to investment excellence at its heart. 

Please view the product information below in conjunction with the investment risks at the bottom of the page. 

Invesco Select Trust plc

Following shareholder approval (April 2024), Invesco Select Trust plc has been restructured to become a global equity income investment trust. Launched in May 2024, Invesco Global Equity Income Trust plc (ticker: IGET) is managed by Stephen Anness.  Read more about Invesco Global Equity Income Trust plc.

For further information on Invesco Select Trust plc’s reclassified share portfolios, please refer to the Restructuring Proposals Circular.

What are investment trusts?

In a nutshell, putting your money into an investment trust means you become a shareholder in a listed company. Its sole purpose is to invest shareholders’ money and deliver returns in line with its investment objectives. That could be paying income, providing capital growth, or a mixture of both.  

They’re like individual stocks because they…
  • Are bought and sold in real time on a stock exchange through brokers or platforms
  • Can pay investors an income through dividends which the board of directors can choose to supplement from capital aiming to provide consistency of dividends for shareholders in uncertain market conditions
  • Can borrow and invest funds (depending on the company) with the aim of growing either capital or income returns
  • Give investors some voting rights and a say in how the company is run
And they’re like open-ended funds because they…
  • Are pooled investment vehicles that give collective buying power
  • Can have diversified portfolios with the objective of spreading investment risk across asset classes, regions and industries, sometimes into a broader selection
  • Give access to investments that may be unsuitable or will be too costly to manage directly

How do you invest?

There are two ways you can buy into an investment trust:

So, what makes them different?

Although they share features of both stocks and open-ended trusts, investment trusts have some unique benefits that could make them a great way to meet your goals.

 

How do investment trusts work?

How do trusts work?

For illustrative purposes only.

Inactive trusts

Invesco Enhanced Income Limited

The Invesco Enhanced Income Ltd Trust was merged into the City Merchants High Yield Trust and renamed ‘Invesco Bond Income Plus Limited’.

On 19 May 2021, shareholders passed resolutions to approve a merger of Invesco Enhanced Income Limited (IPE) with City Merchants High Yield Trust Limited (CMHY) by way of a scheme of reconstruction and the summary winding-up (solvent liquidation) of IPE pursuant to which IPE shareholders became entitled, in respect of their shareholdings, to receive new CMHY shares.

FAQs

For more information and a comprehensive glossary of terms, please see the Annual Financial Report on each trust’s webpage.

If you’d like to know more about investment trusts, theaic.co.uk is a great source of help and advice.

Investment trusts are a type of fund that lets you invest in different asset classes, regions and sectors. They run as public limited companies and are listed on the London Stock Exchange. This means investment trusts are companies investing in other companies with the aim of making money for their investors, or shareholders.

Find out more

The main differences between Investment Trusts and ICVCs are:

  • Investment Trusts are bought and sold directly on the London Stock Exchange via a stockbroker
  • Investment Trusts have a limited number of shares in issue (closed-ended)
  • Investment Trusts can borrow money to invest - known as gearing or leverage
  • Investment Trusts have an independent Board of Directors
  • The share price of Investment Trusts do not necessarily reflect the net asset value of the company
  • Investment Trusts can retain up to 15% of their yearly income

We’ve written a more detailed explainer if you would like to find out more

Net Asset Value (NAV) is the underlying value (per share) of the investments owned by the investment trust.  

The NAV is different to the share price. The share price is the value of the share at a given moment. It is determined by the balance between supply and demand.

 

Gearing (or leverage) is the process where investment trusts borrow money long-term in order to increase the amount of funds working for the benefit of shareholders.

Gearing increases the volatility of the portfolio and therefore the rise or fall in the value of net assets attributable to shareholders will be magnified.

Discounts and premiums typically depend on how much the shares of the Investment Trust are in demand:

If the demand for shares in an Investment Trust company is high, the share price can exceed the NAV per share. The trust is therefore trading at a ‘premium’.

If the demand for shares in an Investment Trust company is low, the share price drops lower than the NAV per share. The trust is therefore trading at a ‘discount'.


Find out more

It is possible to invest in an investment trust either directly through a financial adviser, stockbroker or bank or through an execution-only platform.

We have compiled a list of execution-only platforms 

Investment risks

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

    The Invesco Asia Trust plc invests in emerging and developing markets, where difficulties in relation to market liquidity, dealing, settlement and custody problems could arise. The product uses derivatives for efficient portfolio management which may result in increased volatility in the NAV. The use of borrowings may increase the volatility of the NAV and may reduce returns when asset values fall.

    The Invesco Perpetual UK Smaller Companies Investment Trust plc invests in smaller companies which may result in a higher level of risk than a product that invests in larger companies. Securities of smaller companies may be subject to abrupt price movements and may be less liquid, which may mean they are not easy to buy or sell. The product uses derivatives for efficient portfolio management which may result in increased volatility in the NAV. The use of borrowings may increase the volatility of the NAV and may reduce returns when asset values fall.

    The Invesco Bond Income Plus Limited has a significant proportion of high-yielding bonds, which are of lower credit quality and may result in large fluctuations in the NAV of the product. The product may invest in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events. The use of borrowings may increase the volatility of the NAV and may reduce returns when asset values fall. The product uses derivatives for efficient portfolio management which may result in increased volatility in the NAV.

    The Invesco Global Equity Income Trust plc uses derivatives for efficient portfolio management which may result in increased volatility in the NAV. The use of borrowings may increase the volatility of the NAV and may reduce returns when asset values fall. The Invesco Global Equity Income Trust plc invests in emerging and developing markets, where difficulties in relation to market liquidity, dealing, settlement and custody problems could arise.

Important information

  • *Assets under management as at 31 March 2024.

    Current tax levels and reliefs may change. Depending on individual circumstances, this may affect investment returns.

    This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.

    Views and opinions are based on current market conditions and are subject to change.

    For more information on our products, please refer to the relevant Key Information Document (KID), Alternative Investment Fund Managers Directive document (AIFMD), and the latest Annual or Half-Yearly Financial Reports. This information is available on the website.

    Further details of the Company’s Investment Policy and Risk and Investment Limits can be found in the Report of the Directors contained within the Company’s Annual Financial Report.