in assets under management (the amount of money we manage on behalf of our investors)*
years of providing a specialist full service offering to investment companies
average years of experience across our specialist investment trust portfolio managers
Better inflation data prompted a strong start to the quarter, however, there was a sharp sell-off in August as positivity around interest rates was swamped by fears of a US recession. These fears gradually dissipated, and markets largely recovered by the end of the quarter.
It might seem confusing to buy assets that are out of favour, while selling those that are popular. But if you want to get value out of what you buy, it helps to take a contrarian approach.
With Labour winning the UK election we examine what securonomics mean for the UK economy, wealth management, UK equities and fixed income. Find out more.
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.
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.
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.
There are two ways you can buy into an investment trust:
They can give you advice and facilitate investing in an investment trust or company – there is usually a fee for this service. If you don’t already have a financial adviser you can use http://www.unbiased.co.uk to find one near you.
These platforms don’t offer any advice, and there is a transaction charge for using the service. We’ve pulled together a selection of execution-only platforms for you.
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.
Because they have a fixed number of shares – known as ‘closed-ended’ – they’re less likely to have money flowing in and out unpredictably. This means the portfolio manager has more flexibility to invest and sell when they feel the time is right, so they’re better able to build a long-term strategy.
Another benefit is that the manager can invest in assets that trade less easily and frequently, but may generate better returns for investors.
Being a shareholder gives you more rights than unit holders have in funds such as ICVCs. You’ll be allowed to vote on issues such as the appointment of directors and key company policies, and attend the AGM.
Investment trusts are also overseen by an independent board of directors to ensure all parties are always acting in the best interests of investors.
Unlike open-ended funds, investment trusts don’t have to pay out all their dividend income immediately. In good years the Investment trusts can keep some in reserve, or even use its capital growth, to top-up dividends in years when the portfolio’s income is lower than average, smoothing out the payments. This is particularly attractive to income-seeking investors.
For illustrative purposes only.
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.
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.
The main differences between Investment Trusts and ICVCs are:
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'.
It is possible to invest in an investment trust either directly through a financial adviser, stockbroker or bank or through an execution-only platform.
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.
*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.
