Invesco Global Equity Income Trust Plc - Half-year Report
LEI: 549300JZQ39WJPD7U596
HALF-YEARLY FINANCIAL REPORT
SIX MONTHS ENDED
Unless noted below all page numbers refer to the Half-Yearly Financial Report on the Company’s website.
Investment Objective
The Company’s investment objective is to provide an attractive level of predictable income and capital appreciation over the long term, predominately through investment in a diversified portfolio of equities worldwide.
Total Return Statistics (1) (dividends reinvested)
Six Months to Year Ended
30 November 31 May
2024 2024
Net asset value (NAV) total return(2) 10.7% 21.0%
Share price total return(2) 10.1% 26.9%
Benchmark index total return 11.4% 21.6%
Capital Statistics
At At
30 November 31 May
2024 2024 % Change
Net assets (£’000) 214,200 197,555 8.4
NAV per share 340.27p 313.30p 8.6
Share price(1) 308.00p 286.00p 7.7
Discount(2) per ordinary share (9.5)% (8.7)%
Gearing(2):
– gross gearing 1.4% nil
– net gearing 0.9% nil
– net cash nil 0.9%
(1) Source: LSEG Data & Analytics.
(2) Alternative Performance Measures (APMs), see pages 16 to 17 for the explanation and reconciliations of APMs. Further details are provided in the Glossary of Terms and Alternative Performance Measures in the Company’s 2024 Annual Financial Report.
Chair’s Statement
Dear Shareholder
I am pleased to present your Company’s half-yearly financial report for the six-month period ended
Market Overview
The six months ended
Performance
Despite the challenging global equity market conditions, your Portfolio Managers’ rigorous process around bottom-up stock selection again resulted in strong investment performance. The NAV total return per shares was +10.7%, compared with the Company’s benchmark, the MSCI World Index (£), total return of +11.4%, over the period. Although your Company marginally underperformed its benchmark, it still achieved top quartile performance out of the 18 companies in the AIC’s Global and Global Equity Income sectors over the period. A review of your Company’s performance during the period, and changes in the portfolio positioning, can be found in the Portfolio Managers’ Report.
The share price total return was +10.1%, with the discount at which the shares trade relative to their NAV having widened from –8.7% at the beginning of the period to –9.5% at the period end. The average discount over the period was -10.7%.
Your Company’s strong longer-term performance was recognised in
Gearing
Income and Dividends
Net revenue earnings per share for the six months amounted to 1.81p.
A core objective of your Company is to provide shareholders with an attractive level of predictable income. With effect from the current financial year, we seek to achieve this by paying an annual dividend of at least 4% of the unaudited previous year-end NAV, which is paid quarterly in equal amounts. Dividends are paid from the Company’s revenues and, if needed, its capital reserves.
Discount Management
During the period, the Company bought back 107,000 of its own shares at a cost of £0.31 million and an average discount of -10.4%. All shares bought back are held in treasury and may be sold at a premium to the NAV per share.
Your Board intends to continue to use ad hoc share buybacks with the aim of maintaining a single digit discount in normal market conditions.
Portfolio Management Team
Board Succession
I joined the Board on
Details of Helen’s and my backgrounds and experience can be found on the Company’s website (www.invesco.com/uk/en/investment-trusts/invesco-global-equity-income-trust.html).
Annual General Meeting
Each resolution at the AGM was passed by a very substantial majority and, on behalf of the Board, I thank shareholders for their ongoing support.
Post-period End Update
Since the period end, the NAV total return per share and share price total return were +2.3% and +13.5% respectively, compared with the Company’s benchmark total return +1.4% (to 24 February 2025).
Since
Outlook
Looking ahead, we remain cautious yet optimistic about your Company’s prospects. Further interest rate cuts are anticipated but inflationary pressures remain. These factors are well known and should have been priced in by equity markets. More difficult for equity markets to price in is the ramifications of President Trump’s unpredictable approach to policy making, and, as a result, global equity markets are likely to remain volatile.
We are confident, however, in our Portfolio Managers’ investment approach and their ability to identify quality companies where returns are driven by stock-specific factors rather than determined by a particular macro or economic environment and their focus will remain on high-conviction investments, maintaining a diversified portfolio and actively managing risks.
Chair
Portfolio Managers’ Report
Q How has the portfolio performed over the period?
A Over the last six months, the Company’s net asset value returned +10.7% (total return, in sterling terms), behind its benchmark, MSCI World Index (total return, in sterling terms), which delivered +11.4% over the same period.
Below is an analysis of the main contributors and detractors during the period:
30 Nov 2024
Performance Portfolio
Key Impact Weight
Contributors % %
3i 1.06 5.44
Herc Holdings 0.84 1.94
KKR & Co 0.74 1.79
Broadcom 0.60 2.85
UnitedHealth 0.50 4.43
30 Nov 2024
Performance Portfolio
Key Impact Weight
Detractors % %
Verallia –1.56 2.10
Universal Music –0.96 2.21
LVMH –0.86 2.16
Aker BP –0.68 1.78
Tesla –0.65 0.00
Source: Invesco, Bloomberg.
On the positive side, the portfolio’s largest holding 3i was a top contributor to relative performance as the private equity company continued to benefit from its investment in European discount retailer Action, which continues to perform well. Also in the private equity space, KKR & Co saw its advancements underpinned by positive earnings and revenue for the second and third quarters of 2024.
Herc Holdings gained during the period with industrial rental supplier reporting third quarter rental revenue that surpassed estimates whilst also boosting its growth outlook for fiscal 2024. Chipmaker Broadcom continued to benefit from demand for AI-related products, while UnitedHealth , the portfolio’s second largest holding, gained on stronger-than-expected second quarter adjusted profits.
On the other hand, Verallia , a glass-packaging company, lost ground in July after the company cut its annual earnings guidance citing a slow recovery in demand. However, in October the company reported that volume growth had returned in the third quarter which led to shares regaining some of the lost ground. We remain optimistic about the long-term prospects of the business, which is a market leader in European glass packaging.
Universal Music ’s second quarter revenue beat was overshadowed by a slowdown in the subscription and streaming segment of the business which led to a selloff in July. We continue to believe that they can steady the ship and compound at an attractive rate over the long run.
Weakness in
LVMH
was driven largely by concerns that demand for luxury goods may be fading, particularly in
Not holding Tesla in the portfolio had a negative impact over the period, while Norway’s Aker BP gave up some ground following weakness in oil prices.
Q Has the positioning of the portfolio changed significantly over the period?
A Some notable examples of buys and sells can be found below.
Bought:
•
Amentum
is a market leading US/
•
Corpay
is a Global provider of digital payment solutions, enabling businesses to control purchases and make payments. The CEO
Sold:
• Apple shares have rebounded strongly – up c40% since our purchase in April – and we felt there were better risk/ reward opportunities elsewhere.
• Home Depot was a low conviction (small) position for some time in the portfolio. Strong performance between August-October gave us the opportunity to recycle into higher conviction ideas.
Q What are your thoughts on portfolio structure?
A Our philosophy has always been to deliver a portfolio yield above the benchmark index, but not all stocks in our portfolio need to provide a yield. This flexibility allows us to select stocks from across the market, offering diverse opportunities for growth and risk management. We categorise our investments as follows (the percentage ranges refer to the Company’s gross assets):
Dividend Compounders (70%-100%): companies with attractive yields that have consistently grown over time.
Faster Growth, Low/No Yield (0-20%): typically tech companies with high growth potential but low or no yield.
Dividend Restoration (0-10%): special situations where dividends have been cut but are expected to be restored soon.
This diversified approach sets us apart from our peers. We strive to identify market opportunities that will grow your income and capital over the long term, even if it means not having the highest yield in the sector. With the Company’s new policy of paying an annual dividend of at least 4% of the previous year-end NAV, shareholders can enjoy predictable income without any compromising of the investment team’s philosophy.
Q What are your thoughts on gearing?
A We remain thoughtful around gearing due to some caution on adding additional risk to the portfolio at a point when expectations are already quite high in the market. However, this can change quickly if there are any notable market events, and we see an opportunity to scale up our risk.
Q Can you provide a brief summary of your approach to ESG?
A We view analysing ESG risks as a key part of our investment process. As active, fundamental managers we consider every key aspect of a company’s true worth, including material ESG considerations because we believe that the most sustainable way to make money is to buy companies for less than they are worth.
Establishing an estimated ‘fair value’ of a company is therefore essential and this entails incorporating ESG aspects into our investment methodology. We take a holistic approach where a company’s ESG credentials are scrutinised alongside traditional financial and qualitative aspects to derive a fair value. All companies face challenges regarding ESG and therefore we must consider materiality (the impact of ESG factors on fair value) and ESG momentum (the potential for ESG improvement over time). Both can influence a stock’s potential returns and our conviction levels in an investment. As shareholders we actively engage with companies to enhance the value of our investments.
We encourage companies to create sustainable value and mitigate risks in relation to their corporate activities. This can include prompting them to improve governance structures, make better asset allocation decisions, instilling sustainable practices and policies and providing better disclosure. This reinforces our fundamental belief that responsible investing demands a long-term view and that a stakeholder-centric culture of ownership and stewardship is at the heart.
Q What is your outlook for 2025?
A
Perhaps the biggest risk investors face is that both 2023 and 2024 surpassed expectations from a macro point of view as a
hard economic landing never materialised and markets performed very strongly as a result. As a consequence, it has raised the bar, in terms of delivering another year of outperformance in 2025. Markets are already pricing some benign outcomes when it comes to further rate cuts from the Fed and the
Given the current market conditions, we continue to have conviction in our portfolio. We believe it stands out from the market, containing many strong companies trading at attractive prices, capable of thriving independently of broader trends. This has always been our approach, but this year the gap between our portfolio and the benchmark feels more pronounced than usual. We continue to focus on bottom-up research focussing on attractive dividend and dividend growth characteristics.
Portfolio Manager Deputy Portfolio Manager
List of Investments
AT
Ordinary shares unless stated otherwise
Market
Value % of
Company Sector† Country £’000 Portfolio
3i Financial Services United Kingdom 11,783 5.4
UnitedHealth Health Care Equipment & United States 9,587 4.4
Services
Microsoft Software & Services United States 9,132 4.2
Rolls-Royce Capital Goods United Kingdom 8,963 4.1
Texas Instruments Semiconductors & United States 8,133 3.8
Semiconductor Equipment
Coca-Cola Europacific Food, Beverage & United Kingdom 8,048 3.7
Partners Tobacco
Union Pacific Transportation United States 7,756 3.6
London Stock Exchange Financial Services United Kingdom 7,699 3.6
Standard Chartered Banks United Kingdom 6,799 3.1
Azelis Capital Goods Belgium 6,524 3.0
Top Ten Holdings 84,424 38.9
AIA Insurance Hong Kong 6,364 3.0
Broadcom Semiconductors & United States 6,174 2.9
Semiconductor Equipment
Pharmaceuticals,
Recordati Biotechnology & Life Italy 5,469 2.5
Sciences
Equity Real Estate
American Tower Investment Trusts United States 5,236 2.4
(REITs)
Zurich Insurance Insurance Switzerland 5,182 2.4
Corpay Financial Services United States 5,094 2.4
Old Dominion Freight Transportation United States 4,982 2.3
Line
Infrastrutture Telecommunication Italy 4,882 2.3
Services
Universal Music Media & Entertainment Netherlands 4,796 2.2
Progressive Insurance United States 4,784 2.2
Top Twenty Holdings 137,387 63.5
LVMH Consumer Durables & France 4,687 2.2
Apparel
Verallia Materials France 4,542 2.1
CME Financial Services United States 4,221 1.9
Herc Holdings Capital Goods United States 4,212 1.9
KKR & Co Financial Services United States 3,880 1.8
Intercontinental Financial Services United States 3,872 1.8
Exchange
Taiwan Semiconductor Semiconductors & Taiwan 3,864 1.8
Manufacturing Semiconductor Equipment
Coca-Cola Food, Beverage & United States 3,850 1.8
Tobacco
Aker BP Energy Norway 3,847 1.8
Canadian Pacific Kansas Transportation Canada 3,736 1.7
City
Top Thirty Holdings 178,098 82.3
Ferguson Capital Goods United States 3,710 1.7
Abbott Laboratories Health Care Equipment & United States 3,697 1.7
Services
Analog Devices Semiconductors & United States 3,668 1.7
Semiconductor Equipment
Royal Unibrew Food, Beverage & Denmark 3,592 1.7
Tobacco
RELX Commercial & United Kingdom 2,790 1.3
Professional Services
Amazon Consumer Discretionary United States 2,689 1.2
Distribution & Retail
Pharmaceuticals,
Medpace Biotechnology & Life United States 2,651 1.2
Sciences
Tractor Supply Consumer Discretionary United States 2,277 1.1
Distribution & Retail
Howden Joinery Capital Goods United Kingdom 2,222 1.0
Pharmaceuticals,
Novo-Nordisk – B Shares Biotechnology & Life Denmark 2,144 1.0
Sciences
Top Forty Holdings 207,538 95.9
O’Reilly Automotive Consumer Discretionary United States 2,131 1.0
Distribution & Retail
Amentum Commercial & United States 1,898 0.9
Professional Services
Prosus Consumer Discretionary Netherlands 1,811 0.8
Distribution & Retail
Pharmaceuticals,
Danaher Biotechnology & Life United States 1,629 0.7
Sciences
Estee Lauder – A Shares Household & Personal United States 1,513 0.7
Products
Sberbank* – ADR Banks Russia – –
Harbinger – Streamline Hedge Funds Cayman Islands – –
Offshore Fund+
Total Holdings 47 216,520 100.0
(2024: 42)
ADR American Depositary Receipts – are certificates that represent shares in the relevant stock and are issued by a US bank. They are denominated and pay dividends in US dollars.
† MSCI and Standard & Poor’s Global Industry Classification Standard.
* The investment in Sberbank – ADR has been valued at zero as secondary listings of the depositary receipts on Russian companies have been suspended from trading.
+
The hedge fund investments are residual holdings of the previous investment strategy, transferred from the Balanced Risk Allocation Portfolio as part of the Company’s restructure in
Governance
Principal risks and uncertainties
The principal risks and uncertainties facing the Company fall into the following broad categories: market risk, geopolitical risk, investment
objective and strategy risk, discount risk, performance risk, ESG including climate risk, currency fluctuation risk, information technology
resilience and security risk, operation resilience risk and regulatory and tax related risk. An explanation of these risks (as well as emerging risks)
and how they are managed is set out on pages 39 to 41 of the Company’s Annual Report and Financial Statements for the year ended
In the view of the Board, the principal risks and uncertainties have not materially changed since the date of that report and are as applicable to the remaining six months of the financial year as they were to the six months under review.
Going Concern
The financial statements have been prepared on a going concern basis. The Directors consider this to be appropriate as the Company has adequate resources to continue in operational existence for the foreseeable future, taken as twelve months from the signing of the financial statements for this purpose. This conclusion is consistent with the longer term viability statement on pages 41 to 42 of the Company’s Annual Report and Financial Statements for the year ended
Related Party Transactions
Under United Kingdom Generally Accepted Accounting Practice (
Statement of Directors’ Responsibilities
(in respect of the preparation of the half-yearly financial report)
The Directors are responsible for preparing the half-yearly financial report using accounting policies consistent with applicable law and
The Directors confirm that, to the best of their knowledge:
– the condensed set of financial statements contained within the half-yearly financial report has been prepared in accordance with the FRC’s FRS 104 Interim Financial Reporting;
– the interim management report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R of the FCA’s Disclosure Guidance and Transparency Rules; and
– the interim management report includes a fair review of the information required on related party transactions.
The half-yearly financial report has not been audited or reviewed by the Company’s auditor.
Signed on behalf of the Board of Directors.
Chair
Condensed Income Statement
For the Six Months For the Six Months
Ended Ended
30 November 2024 30 November 2023
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Gains on investments held at fair – 20,183 20,183 – 6,765 6,765
value
(Losses)/gains on derivative – – – (3) 58 55
instruments
Losses on foreign exchange – (19) (19) – (10) (10)
Income – note 2 1,803 – 1,803 3,710 – 3,710
Investment management fees – note (165) (384) (549) (167) (387) (554)
3
Other expenses (322) 10 (312) (293) (5) (298)
Net return before finance costs 1,316 19,790 21,106 3,247 6,421 9,668
and taxation
Finance costs – note 3 (12) (27) (39) (92) (214) (306)
Return before taxation 1,304 19,763 21,067 3,155 6,207 9,362
Tax on ordinary activities – note (163) – (163) (120) 32 (88)
5
Return after taxation for the 1,141 19,763 20,904 3,035 6,239 9,274
financial period
Return per ordinary share (basic
and diluted) – note 4:
– Global Equity Income (formerly
Global Equity Income 1.81p 31.36p 33.17p 2.06p 19.97p 22.03p
Share Portfolio)
– UK Equity Share Portfolio(1) n/a n/a n/a 3.51p 1.65p 5.16p
– Balanced Risk Allocation Share n/a n/a n/a 2.33p 1.46p 3.79p
Portfolio(1)
– Managed Liquidity Share n/a n/a n/a 2.14p 0.69p 2.83p
Portfolio(1)
(1)
This Share class was closed on
The total columns of this statement represent the Company’s profit and loss account, prepared in accordance with
Condensed Statement of Changes in Equity
Capital
Share Redemption Special Capital Revenue
Capital Reserve Reserve Reserve Reserve Total
£’000 £’000 £’000 £’000 £’000 £’000
Six months ended 30 November
2024
At 31 May 2024 800 1,285 113,296 82,072 102 197,555
Shares bought back and held – – (315) – – (315)
in treasury
Return after taxation per the – – – 19,763 1,141 20,904
income statement
Dividends paid – note 6 – – (2,803) – (1,141) (3,944)
At 30 November 2024 800 1,285 110,178 101,835 102 214,200
Six months ended 30 November
2023
At 31 May 2023 1,707 377 137,424 60,129 102 199,739
Cancellation of deferred – 4 (4) – – –
shares
Shares bought back and held – – (2,157) – – (2,157)
in treasury
Share conversions (3) – 3 – – –
Return after taxation per the – – – 6,239 3,035 9,274
income statement
Dividends paid – note 6 – – (285) – (2,841) (3,126)
At 30 November 2023 1,704 381 134,981 66,368 296 203,730
Condensed Balance Sheet
Registered Number 5916642
AS AT
At At
30 November 31 May
2024 2024
£’000 £’000
Fixed assets
Investments held at fair value through profit or loss 216,520 195,824
Current assets
Debtors 612 1,639
Cash and cash equivalents 1,017 1,859
1,629 3,498
Creditors: amounts falling due within one year
Other creditors (999) (1,767)
Bank facility (2,950) –
(3,949) (1,767)
Net current (liabilities)/assets (2,320) 1,731
Net assets 214,200 197,555
Capital and reserves
Share capital 800 800
Other reserves:
Capital redemption reserve 1,285 1,285
Special reserve 110,178 113,296
Capital reserve 101,835 82,072
Revenue reserve 102 102
Total shareholders’ funds 214,200 197,555
Net asset value per ordinary share 340.27p 313.30p
Signed on behalf of the Board of Directors.
Chair
Condensed Statement of Cash Flows
For the For the
six months six months
ended ended
30 November 30 November
2024 2023
£’000 £’000
Cash flows from operating activities
Net return before finance costs and taxation 21,106 9,668
Tax on overseas income (163) (88)
Adjustments for:
Purchase of investments (40,593) (38,147)
Sale of investments 40,373 36,785
Sale of futures – (87)
(220) (1,449)
Gains on investments (20,183) (6,765)
Gains on derivatives – (55)
(Increase)/decrease in debtors (20) 343
Decrease in creditors (6) (1)
Net cash inflow from operating activities 514 1,653
Cash flows from financing activities
Interest paid on bank borrowings (47) (294)
Increase in bank facility 2,950 3,300
Shares bought back and held in treasury (315) (2,157)
Dividends paid – note 6 (3,944) (3,126)
Net cash outflow from financing activities (1,356) (2,277)
Net decrease in cash and cash equivalents (842) (624)
Cash and cash equivalents at the start of the period 1,859 1,094
Cash and cash equivalents at the end of the period 1,017 470
Reconciliation of cash and cash equivalents to the
Balance Sheet is as follows:
Cash held at custodian 457 470
Invesco Liquidity Funds plc – Sterling, money market 560 –
fund
Cash and cash equivalents 1,017 470
Cash flow from operating activities includes:
Dividends received 1,577 3,641
Interest received 18 23
At At
1 June Cash 30 November
2024 flows 2024
£’000 £’000 £’000
Reconciliation of net debt
Cash and cash equivalents 1,859 (842) 1,017
Bank facility – (2,950) (2,950)
Total 1,859 (3,792) (1,933)
Notes to the Condensed Financial Statements
1. Accounting Policies
The condensed financial statements have been prepared in accordance with applicable United Kingdom Accounting Standards and applicable law (
The accounting policies applied to these condensed financial statements are consistent with those applied in the Company’s 2024 Annual Financial Report for the year ended
2. Income
Six Months to Six Months to
30 November 30 November
2024 2023
£’000 £’000
Income from investments:
UK dividends 468 2,508
Overseas dividends – ordinary 1,219 1,001
Overseas dividends – special 98 122
1,785 3,631
Other income:
Deposit interest 18 23
Rebates of management fee – 1
Interest from Treasury bills – 55
1,803 3,710
No special dividends have been recognised in capital during the period (2023: £nil).
3. Management Fee and Finance Costs
Investment management fee and finance costs on any borrowings are charged 70% to capital and 30% to revenue. A management fee is payable quarterly in arrears and is equal to 0.55% per annum of the value of the Company’s net assets at the end of the relevant quarter and 0.50% per annum for any net assets over £100 million.
4. Return per Ordinary Share
Revenue, capital and total return per ordinary share is based on each of the returns after taxation shown by the income statement for the applicable share class and on the following numbers of shares being the weighted average number of shares in issue throughout the period for each applicable share class:
Weighted Average Number Of
Shares
Six Months to Six Months to
30 November 30 November
2024 2023
Share:
Global Equity Income (formerly Global Equity Income 63,014,375 25,230,982
Share Portfolio)
UK Equity Share Portfolio(1) – 68,231,832
Balanced Risk Allocation Share Portfolio(1) – 4,158,733
Managed Liquidity Share Portfolio(1) – 1,262,789
(1) This Share class was closed on
5. Investment Trust Status and Tax
It is the intention of the Directors to conduct the affairs of the Company so that it satisfies the conditions for approval as an investment trust company. As such, the Company has not provided any
The tax charge represents withholding tax suffered on overseas income for the period.
6. Dividends Paid on Ordinary Shares
Six months to Six months to
30 November 2024 30 November 2023
Rate (Pence) £’000 Rate (Pence) £’000
Global Equity Income (formerly Global
Equity Income Share Portfolio)
First interim 3.13 1,974 1.60 402
Second interim 3.13 1,970 1.60 402
6.26 3,944 3.20 804
Combined closed share classes(1)
First interim – – 3.60 1,156
Second interim – – 1.60 1,083
Special dividend – – 2.00 83
– – 7.20 2,322
Total dividends 6.26 3,944 10.40 3,126
(1)
The combined closed share class dividends were those paid by
On
7. Share Capital, Including Movements
Global
Equity
For the six months to 30 November 2024 Income
Number of ordinary shares in issue
At 31 May 2024 63,056,464
Shares bought back into treasury (107,000)
At 30 November 2024 62,949,464
Number of treasury shares held
At 31 May 2024 16,930,122
Shares bought back into treasury 107,000
At 30 November 2024 17,037,122
Total shares in issue at 30 November 2024 (1) 79,986,586
(1)
Following shareholder approval at the Annual General Meeting held on
Global
Equity UK Balanced Managed
For the year ended 31 May Income Equity Risk Allocation Liquidity
2024
Number of ordinary shares in
issue
At 31 May 2023 25,135,742 68,881,153 4,138,995 1,251,360
Shares bought back into (153,963) (1,510,343) – –
treasury
Arising on share conversion 565,132 (800,197) (129,244) 65,932
Tender offer in respect of
the share class – (9,985,591) (714,610) (417,453)
reclassification
Share class reclassification 37,509,553 (56,585,022) (3,295,141) (899,839)
At 31 May 2024 63,056,464 – – –
Number of treasury shares
held
At 31 May 2023 16,776,159 38,515,775 6,547,218 9,393,678
Shares bought back into 153,963 1,510,343 – –
treasury
Treasury shares cancelled – (40,026,118) (6,547,218) (9,393,678)
At 31 May 2024 16,930,122 – – –
Total shares in issue at 31 79,986,586 – – –
May 2024(1)
(1)
Following shareholder approval at the Annual General Meeting held on
During the period the Company bought back, into treasury, 107,000 ordinary shares at a total cost of £315,000 (
Subsequent to the period end, 1,235,282 ordinary shares were bought back into treasury at a total cost of £3,929,000.
8. Classification Under Fair Value Hierarchy
FRS 102 sets out three fair value levels. These are:
Level 1 – The unadjusted quoted price in an active market for identical assets that the entity can access at the measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly.
Level 3 – Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.
The fair value hierarchy analysis for investments and related forward currency contracts held at fair value at the period end is as follows:
30 November 31 May
2024 2024
£’000 £’000
Financial assets designated at fair value through profit or
loss:
Level 1 216,520 195,824
Level 2 – –
Level 3 – –
Total for financial assets 216,520 195,824
Level 3 investments comprise any unquoted securities and the remaining hedge fund investments transferred from the Balanced Risk Allocation Portfolio as part of the Company’s restructure in
9. Status of Half-Yearly Financial Report
The financial information contained in this half-yearly report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the half years ended
By order of the Board
Company Secretary
Date:
Glossary of Terms and Alternative Performance Measures
(Discount)/Premium
Discount is a measure of the amount by which the mid-market price of an investment company share is lower than the underlying net asset value (NAV) of that share. Conversely, premium is a measure of the amount by which the mid-market price of an investment company share is higher than the underlying net asset value of that share. In this half-yearly financial report the discount is expressed as a percentage of the net asset value per share and is calculated according to the formula set out below. If the shares are trading at a premium the result of the below calculation will be positive and if they are trading at a discount it will be negative.
Gearing
The gearing percentage reflects the amount of borrowings that a company has invested. This figure indicates the extra amount by which net assets, or shareholders’ funds, would be expected to move if the value of a company’s investments were to rise or fall. A positive percentage indicates the extent to which net assets are geared; a nil gearing percentage, or ‘nil’, shows a company is ungeared. A negative percentage indicates that a company is not fully invested and is holding net cash as described in the Alternative Performance Measures section below.
Net Asset Value (NAV)
Also described as shareholders’ funds, the NAV is the value of total assets less liabilities. The NAV per share is calculated by dividing the net asset value by the number of ordinary shares in issue. The number of ordinary shares for this purpose excludes those ordinary shares held in treasury.
Volatility
Volatility refers to the amount of uncertainty or risk about the size of changes in a security’s value. It is a statistical measure of the dispersion of returns for a given security or market index measured by using the standard deviation or variance of returns from that same security or market index. Commonly, the higher the volatility, the riskier the security.
Total Return
Total return is the theoretical return to shareholders that measures the combined effect of any dividends paid, together with the rise or fall in the share price or NAV. In this half-yearly financial report these return figures have been sourced from LSEG Data & Analytics who calculate returns on an industry comparative basis. The figures calculated below are six month and one year total returns; however the same calculation would be used for three, five and ten year total returns where quoted in this report, taking the respective net asset values and share prices period for the opening and closing periods and adding the impact of dividend reinvestments for the relevant periods.
NAV Total Return
Total return on net asset value per share, assuming dividends paid by the Company were reinvested, without transaction costs, into the shares of the Company at the NAV per share at the time the shares were quoted ex-dividend.
Share Price Total Return
Total return to shareholders, on a mid-market price basis, assuming all dividends received were reinvested, without transaction costs, into the shares of the Company at the time the shares were quoted ex-dividend.
Benchmark Total Return
The benchmark of the Company is the MSCI World Index (total return in sterling terms). Total return on the benchmark is on a mid-market value basis, assuming all dividends received were reinvested, without transaction costs, into the shares of the underlying companies at the time the shares were quoted ex-dividend.
Alternative Performance Measure
An APM is a measure of performance or financial position that is not defined in applicable accounting standards and cannot be directly derived from the financial statements. The calculations shown in the corresponding tables are for the six months ended
(Discount)/Premium (APM)
30 November 31 May
Page 2024 2024
Share price 1 a 308.00p 286.00p
Net asset value per share 1 b 340.27p 313.30p
Discount c = (a–b)/b (9.5)% (8.7)%
Gross Gearing (APM)
This reflects the amount of gross borrowings in use by a company and takes no account of any cash balances. It is based on gross borrowings as a percentage of net assets.
30 November 31 May
2024 2024
Page £’000 £’000
Gross borrowings – bank facility 11 a 2,950 –
Net asset value 11 b 214,200 197,555
Gross gearing c = a/b 1.4% nil
Net gearing reflects the amount of net borrowings invested, i.e. borrowings less cash and cash equivalents (incl. investments in money market funds). It is based on net borrowings as a percentage of net assets. Net cash reflects the net exposure to cash and cash equivalents, as a percentage of net assets, after any offset against total borrowings.
30 November 31 May
2024 2024
Page £’000 £’000
Bank facility 11 2,950 -
Less: cash and cash equivalents including 11 (1,017) (1,859)
margin
Net borrowings a 1,933 (1,859)
Net asset value 11 b 214,200 197,555
Net gearing/(net cash) c = a/b 0.9% (0.9)%
Total Return (APM)
Net Asset
Six months ended 30 November 2024 Page Value Share Price
As at 30 November 2024 1 340.27p 308.00p
As at 31 May 2024 1 313.30p 286.00p
Change in period a 8.6% 7.7%
Impact of dividend reinvestments(1) b 2.1% 2.4%
Total return for the period c = a+b 10.7% 10.1%
Net Asset
Year ended 31 May 2024 Page Value Share Price
As at 31 May 2024 1 313.30p 286.00p
As at 31 May 2023 265.53p 232.00p
Change in period a 18.0% 23.3%
Impact of dividend reinvestments(1) b 3.0% 3.6%
Total return for the period c = a+b 21.0% 26.9%
(1)
Total dividends paid during the six months to
Directors, Investment Manager and Administration
Directors
All the Directors are, in the opinion of the Board, independent of the management company.
All Directors are members of the Audit Committee, Management Engagement, Nomination and Marketing Committees.
Registered Office and Company Number
RG9 1HH
Registered in
Company Secretary
Company Secretarial contact:
Tel: 020 7543 3559
email: James.Poole@invesco.com
Correspondence Address
Tel: 020 3753 1000
email: investmenttrusts@invesco.com
Depositary and Custodian
Corporate Broker
Cavendish
1
General Data Protection Regulation
The Company’s privacy notice can be found at www.invesco.co.uk/investmenttrusts
Invesco Client Services
Invesco has a Client Services Team, available to assist you from
www.invesco.co.uk/investmenttrusts
Registrar
MUFG Corporate Markets (formerly known as
Tel: 0371 664 0300
If you hold your shares directly as a paper share certificate and not through an investment platform or savings scheme and have queries relating to your shareholding you should contact the company’s Registrar, MUFG Corporate Markets, via email on shareholderenquiries@cm.mpms.mufg.com or on: Tel: 0371 664 0300.
Calls are charged at the standard geographic rate and will vary by provider.
MUFG Corporate Markets provides an on-line and telephone share dealing service for
paper share certificates to existing shareholders who are not seeking advice on
buying or selling. This service is available at dealing.cm.mpms.mufg.com or (Tel: 0371
664
0445. Calls are charged at the standard geographic rate and will vary by provider. Calls from outside the
Shareholders holding paper share certificates can also access their holding details via the Investor Centre app or the website at https://uk.investorcentre.mpms.mufg.com.
MUFG Corporate Markets is the business name of
Investor Warning
The Company, Invesco and the Registrar would never contact members of the public to offer services or require any type of upfront payment. If you suspect you have been approached by fraudsters, please contact the
The Company is a member of the
Tel: 020 7282 5555
Email: enquiries@theaic.co.uk
Website: www.theaic.co.uk
Website
Information relating to the Company can be found on the Company’s section of the Manager’s website at www.invesco.com/uk/en/investment-trusts/invesco-global-equity-income-trust.html .
The contents of websites referred to in this document, or accessible from links within those websites, are not incorporated into, nor do they form part of, this document.
The Company’s ordinary shares qualify to be considered as a mainstream investment product suitable for promotion to retail investors.
National Storage Mechanism
A copy of the Half-Yearly
Financial Report will be
submitted shortly to the National Storage Mechanism ("NSM") and will be available for inspection at the NSM, which is situated at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
.
Hard copies of the Half-Yearly Financial Report will be posted to shareholders and can be requested from the Company Secretary by email at
investmenttrusts@invesco.com
or
at the Company’s correspondence address, 2nd
Floor,
For further information, please contact:
For and on behalf of
Corporate Secretary to
Email: investmenttrusts@invesco.com
Head of Specialist Funds - Invesco
Email: will.ellis@invesco.com
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