Investment trust insider on Invesco Global Equity Income – James Carthew: This global alternative to JGGI is on a great run
Invesco Global Equity Income Trust may be fairly small, but it has better success at stockpicking than popular JPMorgan Global Growth and Income.
Last week, I was contrasting the UK equity income sector’s focus on generating the revenue it distributes as dividends with some global equity income trusts’ decision to prioritise total returns and top up dividends with distributions of capital. The obvious example of this is JPMorgan Global Growth and Income (JGGI). A good run of returns, a tendency to trade at a premium and issue stock, and a clutch of mergers have created a £3bn giant. However, there is an alternative, which is much smaller (£238m market cap) but with a better track record: Invesco Global Equity Income Trust (IGET).
IGET was created last year from what was Invesco Select Trust. The various share classes of that trust were merged into a single vehicle based on the pre-existing global equity income share class. The restructuring completed on 7 May 2024, so IGET is now over a year old. However, the global equity income share class had been managed since 2019 by Stephen Anness, who is head of Invesco’s global equities team, and so it is reasonable to look at IGET’s five-year numbers.
Like JGGI, IGET pays out a dividend of at least 4% of NAV per annum, in quarterly instalments. This is great for income investors in that it means that they get a dividend yield a lot higher than from the MSCI All Countries World Index (MSCI ACWI), which was 1.8% at end June. However, if the NAV goes down, so too could the dividend.
JGGI’s board was just faced with that scenario…. read more here