Go global for income and growth with Invesco Global Equity Income Trust plc

Invesco Global Equity Income Trust plc (IGET) Q1 2026 update

Joe Dowling, Fund Manager

Further to the announcement in November regarding the proposed combination of Invesco Global Equity Income Trust (IGET) and Franklin Global Trust plc (FRGT), we can now share that both companies have published their respective circulars which will be sent to all shareholders.  It’s important that shareholders of each company review these documents as they include important information such as the key dates for voting.  

To provide you with the chance to hear from the fund managers, we will be hosting a webinar on Tuesday 27th Jan at 14:30, so whether you’re an existing holder of IGET, or keen to understand more before investing then we’d encourage you to join the webinar by contacting your usual representative at Invesco or registering through the Company website.

How would you sum up 2025 for IGET?

2025 was another solid year for the Trust. We delivered double‑digit returns and a dividend yield above the market. Overall performance was broadly in line with both peers and the wider market...but the important point is how we achieved it.

Our portfolio looked very different from the MSCI World Index Total Return index. When you compare the top contributors in the MSCI World with ours, there’s almost no overlap. Broadcom is the only common holding. That really highlights how differentiated our approach remains.

What continues to anchor your investment approach, especially in a market like this?

Nothing fundamental has changed. We focus on bottom‑up stock picking...understanding businesses, cash flows, and valuations...and we build portfolios to be resilient across different market environments.

That matters because markets in 2025 were once again dominated by momentum. We’ve always said that valuation‑driven strategies tend to lag in those conditions, and this year was no exception.

One notable shift was that momentum moved toward more speculative companies...often with weaker cash flows or higher risk business models. Investor willingness to pay very high valuations for those stocks made us cautious.

Another clear signal of excess was fund manager cash allocations falling to the lowest levels ever recorded, despite higher interest rates. That suggests greed has been a more powerful force than fear.

Where have you been finding opportunity as a result?

We’re not dismissive of long‑term themes like AI, but we believe we can find a better risk‑reward ratio elsewhere...in parts of the market that are currently unloved.

Our bottom‑up process has led us to be materially underweight the US, and we’ve been adding selectively in areas like healthcare. We think ex‑US stocks and healthcare provide useful diversification, particularly if we see a momentum unwind.

What were your biggest takeaways from 2025?

There are three that really stand out.

First, the importance of being different and open‑minded. A great example is AIA Group, the Asian life insurer. It may not be perceived by all as an exciting stock on the surface, but it has performed well, with a healthy dividend. At the right valuation, it outperformed many of the most popular global tech names this year.

Second, the importance of holding on to your winners and not selling too early. Rolls‑Royce and Standard Chartered are good examples. Both were bought when sentiment was extremely negative, both were volatile, and both have turned into very meaningful contributors. Many great investments are uncomfortable when you first make them.

Third, the importance of being active. Share prices moved far more than underlying company cash flows at various points during the year, and those created opportunities.

Turning to detractors, what drove underperformance this year?

Two names stand out: 3i and Novo Nordisk.

In 3i’s case, a brief period of weaker like‑for‑like sales in France at its key subsidiary, Action, led to a very sharp sell‑off. The market reaction was extreme relative to the change in fundamentals, and valuations compressed significantly.

We understand the concern...retail models can turn quickly...but Action has benefitted from a scaled economics model where size strengthens competitiveness, and the majority of the business has performed very well.

Novo derated significantly before we invested, and it now trades on a much lower valuation with a strong dividend yield. While the long‑term category growth remains attractive, execution has been weaker than we expected, particularly around market‑share losses. As a result, we reduced the position as our conviction came down.

Finally, how would you describe your mindset heading into the year ahead?

We remain disciplined, valuation‑focused, and long‑term in our thinking. Markets won’t always reward that approach immediately but staying rational in speculative environments is exactly when the groundwork for future returns is laid.

Investment risks

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

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 product invests in emerging and developing markets, where difficulties in relation to market liquidity, dealing, settlement and custody problems could arise.

Important information

This marketing material is not intended as a recommendation to invest in 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.

If investors are unsure if this product is suitable for them, they should seek advice from a financial adviser.

For more information, please refer to the following documents: the Key Information Document (KID), the Alternative Investment Fund Managers Directive document (AIFMD), and the latest Annual or Half-Yearly Financial Reports. These documents are available upon request using the contact details shown and on the Company’s website.

Issued by: Invesco Fund Managers Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK.
Authorised and regulated by the Financial Conduct Authority.