Differentiated exposure to global equities: Invesco Global Equity Income Trust Outperforms

One of the premises of Invesco Global Equity Income’s (IGET) investment philosophy is that you need to be different to outperform the market. This has been demonstrated over the past five years (to 22/09/2026), as IGET has delivered returns comfortably in excess of the MSCI World Index. Impressively, this outperformance was achieved while taking less market risk and experiencing significantly less downside in falling markets.

Since the start of the year, managers Stephen Anness and Joe Dowling have trimmed the Portfolio’s exposure to companies providing essential components for the build-out of AI infrastructure, such as Dell Technologies. This is because these stocks have seen their share prices surge, with the managers assessing them to now present valuation risks. Conversely, they have built new positions in Microsoft and Amazon, which have been left behind by the market, but remain key players in the development of AI thanks to their cloud businesses. However, it is worth noting that, overall, the information technology sector, which includes many AI-related companies, is currently IGET’s largest sector underweight.

Stephen and Joe have also taken advantage of the sell-off in software-related names in early 2026 to initiate positions in companies like RELX and London Stock Exchange Group. As such businesses are owners of proprietary data that AI cannot easily replicate, they believe the fears of AI disruption for these companies are overstated. In addition, the managers have increased their exposure to companies unrelated to AI, such as Tractor Supply, a retailer serving rural communities in the US.

The board targets a Dividend of 16.0p for FY 2027, resulting in a c. 4% prospective yield. This also represents an 18.5% year-on-year increase, meaning that IGET is on track to deliver a 17th consecutive year of annual dividend growth, which would reinforce its status among the AIC’s next generation of dividend heroes.

In our view, IGET has not only demonstrated the merits of its investment philosophy over the past five years, but also the team’s stock-picking skills, as the trust’s outperformance relative to the MSCI World has been largely driven by stock selection rather than sector or country allocation. As such, we believe there should be an element of repeatability to the investment process, as it relies on funda-mental analysis rather than on macro calls, which are notoriously difficult to get right and arguably partly rely on luck.

In addition to its strong performance track record, IGET also stands out for its differentiated invest-ment proposition. This is reflected in its high active share of 89% and its distinctive sector exposure relative to global equity indices. For example, IGET currently has a significant underweight to the in-formation technology sector, while industrials and financials are its two largest sector exposures, both in absolute and relative terms. As such, we believe IGET could appeal to investors concerned about global equity markets’ concentration in, and increasing reliance on, the AI theme.

We also note that the trust has grown significantly in size following its combination with Franklin Global Trust (FRGT) in February 2026. This should improve the trust’s liquidity, as it becomes investible to a broader range of investors, which could help it maintain its current premium (currently standing at c. 1%). This should also help reduce the trust’s ongoing Charges, as its management fee is calculated based on the trust’s NAV.