Invesco Global Equity Income (UK) Y

International equity fund targeting 4% annual income and capital growth

  • 298.33p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 375.35p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.87%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.87%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 1.90%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 07 May 2021

The fund targets a rising income as well as capital growth by investing in equities worldwide. The manager selects stocks principally from the best ideas of Invesco Perpetual's regional teams, comparing them across sectors to form the portfolio. There are few constraints on the fund's composition so the portfolio may differ substantially from the MSCI World index.

Fund summary

Sector Global Equity Income
Structure OEIC
Launched March, 2014
Size £571m
Yield 1.90%
Charging basis Capital
Dividends paid 30 Apr, 31 Oct

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.87%
Ongoing charges figure 0.87%

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Investment process

The Fund aims to generate a rising level of income, together with long-term capital growth, by investing primarily in global equities. The process is purely bottom-up, with the manager taking the best ideas of Invesco Perpetual’s regional teams (around 550 stocks) then comparing them globally across sectors. The portfolio comprises two types of stocks: (1)those with returns above cost of capital that have defensive barriers enabling them to sustain these returns - the manager looks for sustainable free cashflow of over 5% (the average long bond rate); (2)deep value plays with sub-cost returns. There is a 4% yield target which applies to the portfolio as a whole, so individual holdings may yield less. Upside and downside price targets are set; average holding period is expected to be 3 years.

Manager research

Average monthly relative returns

  • 16/17 -0.36%
  • 17/18 0.20%
  • 18/19 -0.82%
  • 19/20 -1.08%
  • 20/21 0.24%

Bestinvest MRI

  • 3 years -0.56%
  • 5 years -0.36%
  • Career -0.27%
  • 3 years 6.30%
  • 5 years 9.70%
  • Career 9.20%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Nick Mustoe

Based in Henley-on-Thames, Mustoe is Chief Investment Officer of Invesco Perpetual. He joined the company in June 2010. His investment career spans over 25 years to date, having started with Phillips & Drew Fund Management as a UK equity manager in 1985. More recently, he was appointed CIO of Pictet Asset Management in 2006 after joining Hermes Pensions Management as CIO in 2002. He holds a first class honours degree in Business Studies from Bradford University.

Track record

Nick Mustoe has 8.7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.27%. During the worst period of relative performance (from February 2014 - September 2020) there was a decline of 31% relative to the index. The worst absolute loss has been 24%.

Periods of worst performance

Absolute -24.00% (December 2019 - March 2020)
Relative -31.00% (February 2014 - September 2020)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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Top 10 holdings

Data accurate as at 31 July 2020

5.34% Taiwan Semiconductor Manufacturing
4.51% Samsung Electronics Co
4.47% Microsoft Corp
3.87% Jpmorgan Chase & Co
3.61% Zurich Financial Services
3.59% Texas Instruments Inc
3.38% Roche Hldg Ag
3.36% Novartis Ag
3.28% Progressive Corp(Ohio)
3.21% Alphabet Inc
Source: Trustnet

Sector breakdown

Information Technology 28.00%
Financials 23.00%
Consumer Discretionary 12.00%
Health Care 12.00%
Communications 9.00%
Consumer Staples 7.00%
Industrials 5.00%
Energy 4.00%

Portfolio

60-100 stocks

Constraints

Max 6% in an individual holding, 30% in a sector, 25% in small caps. Regional limits: North America 0-75%, Europe 0-50%, UK, Japan, Asia, Emerging (ex Asia) all 0-30%.

Key Investor Information - Income

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Key Investor Information - Accumulation

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