INVESCO GLOBAL EQUITY
INCOME TRUST PLC
Annual Financial Report for the Year Ended 31 May 2025
Contents
Strategy
Overview:
Financial Performance 5
Strategic Report:
Chair’s Statement 6
Performance Record 10
Portfolio Managers’ Report 12
Investment Team and Process 16
Top 10 Holdings 17
Portfolio Analysis 18
List of Investments 19
Environmental, Social and Corporate Governance (‘ESG’) Statement from the Manager 21
Business Review 24
Governance
Directors 35
Directors’ Report 36
The Company’s Corporate Governance Framework 41
Corporate Governance Statement 42
Audit Committee Report 43
Directors’ Remuneration Report 45
Statement of Directors’ Responsibilities 48
Financial
Independent Auditor’s Report 50
Income Statement 57
Statement of Changes in Equity 58
Balance Sheet 59
Cash Flow Statement 60
Notes to the Financial Statements 61
Additional Information
Shareholder Information 77
Advisers and Principal Service Providers 78
Glossary of Terms and Alternative Performance Measures 79
Alternative Investment Fund Managers Directive Disclosures 82
INVESCO GLOBAL EQUITY INCOME TRUST PLC 1
2 INVESCO GLOBAL EQUITY INCOME TRUST PLC
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.
Nature of the Company
Invesco Global Equity Income Trust plc (the ‘Company’ or ‘IGET’), is a public listed Investment Company whose shares are traded on the
London Stock Exchange (with ticker ‘IGET’). The business of the Company is to invest shareholders’ funds with the aim of spreading
investment risk and generating returns for shareholders and the Company is intended as a long-term investment vehicle.
Further information can be accessed via the Manager’s website at www.invesco.com/uk/en/investment-trusts/invesco-global-
equity-income-trust.html.
The Company in Brief
Investment Policy
The Company’s investment policy, which includes objectives,
policies, risks and investment limits for the Company, is
disclosed in full on page 24.
Borrowings and Gearing
The Company may use bank borrowings, the proceeds from
which can be invested, gearing up exposure to the stock
market with the aim of enhancing returns to shareholders.
Dividend Policy
The Company’s dividend policy is to pay an annual dividend
of at least 4% calculated on the unaudited prior year-end NAV.
The dividend is paid quarterly in equal amounts.
Benchmark
The MSCI World Index (£) (total return).
Capital Structure
As at 31 May 2025, the Company’s issued share capital
consisted of 62,924,182 ordinary shares of 1p each, with a
further 17,062,404 shares held in treasury.
Business Model
The Company has contracted with an external investment
manager, Invesco Fund Managers Limited (the ‘Manager’), to
manage its investments and for the Company’s general
administration. Other administrative functions are contracted
to external service providers. The Company has a Board
of non-executive Directors who oversee and monitor the
activities of the Manager and other service providers on behalf
of shareholders and ensure that the investment policy is
adhered to. The Company has no employees.
The Company’s shares are eligible for investment in an ISA
and qualify to be considered as a mainstream investment
product suitable for promotion to retail investors.
INVESCO GLOBAL EQUITY INCOME TRUST PLC 3
In a world of choice, IGET
stands apart
Diversification
A diversified, high
conviction portfolio
of 40-60 stocks
including dividend
compounders, growth
stocks and special
situation opportunities
– providing the potential
to perform through out
different market conditions.
03
Income
A predictable dividend
for the year ahead,
paid quarterly in equal
amounts, totalling
at least 4% of the prior year end NAV
per annum.¹
IGET
A diversified portfolio
of global companies
targeting capital growth
and predictable income.
01
02
Growth
A large, expert team with a track
record of finding attractive
companies at compelling prices
that can grow their earnings
and dividends.
(1) The dividend policy involves paying at least 4% calculated on the unaudited prior year end NAV, paid in equal quarterly in equal amounts. This is not
guaranteed. The net asset value is the Company’s assets, less any liabilities.
IGET aims to pay a predictable and
attractive level of income. This is paid from
a combination of income from the
underlying stocks held in the portfolio, but
also from capital. This means that the
Portfolio Managers are not limited to only
buying stocks that are paying dividends but
also have the freedom to hold companies
that have more growth characteristics.
Either way, the income that shareholders
will be paid is at least 4% of the prior year
end net asset value (unaudited).
When investing in companies that could be
based anywhere in the having expertise and
experience is key. Stephen Anness, Joe
Dowling and the Invesco Global Equities
Team have extensive and longstanding
experience in successfully managing global
portfolios and have built a large catalogue
of research, ready to be utilised at any
point. The Portfolio Manager’s ensure they
keep an open mind when it comes to
looking for new ideas by casting their net
as wide as possible.
Having a diversified portfolio is not solely
having a collection of different company
names. Some companies that appear very
different, or even completely unrelated at
first glance, may in fact have share prices
that behave very similarly. The Portfolio
Managers construct the IGET portfolio with
a very keen eye on these unintended
similarities to maximise the benefits of a
truly diversified portfolio.
1. Income 2. Growth 3. Diversification
4 INVESCO GLOBAL EQUITY INCOME TRUST PLC
Strategy
Overview:
Financial Performance .............................................................5
Strategic Report:
Chair’s Statement ...................................................................6
Performance Record..............................................................10
Portfolio Managers’ Report ....................................................12
Investment Team and Process................................................16
Top 10 Holdings....................................................................17
Portfolio Analysis...................................................................18
List of Investments ................................................................19
Environmental, Social and Corporate Governance (‘ESG’)
Statement from the Manager .............................................21
Business Review ...................................................................24
4 INVESCO GLOBAL EQUITY INCOME TRUST PLC
IGET A diversified, high conviction portfolio that
is well-placed to deliver strong performance across
market cycles.
STRATEGY – FINANCIAL PERFORMANCE
INVESCO GLOBAL EQUITY INCOME TRUST PLC 5
Financial Performance
Capital Statistics
At 31 May
2025 2024 % change
Net assets (£’000) 212,283 197,555 +7.5
NAV per ordinary share 337.36p 313.30p +7.7
Share price
(1)
342.00p 286.00p +19.6
Premium/(discount)
(2)
per ordinary share 1.4% (8.7)%
Average discount over the year
(1)(2)
(6.9)% (13.2)%
Gearing
(2)
:
– gross 1.2% nil
– net 0.0% (0.9)%
Revenue Statistics
Year ended 31 May
2025 2024
(4)
% change
Income (£’000) 4,379 7,433 –41.1
Net revenue available for ordinary
shares (£’000) 3,140 6,099 –48.5
Revenue return per ordinary share 5.01p 9.03p –44.5
Dividends per ordinary share
(5)
– first interim 3.13p 1.60p
– second interim 3.13p 1.60p
– third interim 3.13p 1.60p
– final dividend 3.13p 2.55p
Total dividends 12.52p 7.35p +70.3
Ongoing charges ratio
(2)
0.78% 0.82%
(1) Source: LSEG Data & Analytics.
(2) Alternative Performance Measure (‘APM’). See Glossary of Terms and Alternative Performance Measures on pages 79 to 81 for details of the explanation and
reconciliations of APMs.
(3) Index returns are shown on a total return basis, with dividends reinvested net of withholding taxes.
(4) With the exception of the income and net revenue available for ordinary shares figures which reflect the Company figures, the 2024 comparative figures reflect those
of the Company excluding the revenue return per ordinary share and dividends per share attributable to, and paid by, the UK Equity, Balanced Risk Allocation and
Managed Liquidity Share Portfolios prior to the restructuring of the Company on 7 May 2024. Prior year revenue return per share figures attributable to the UK Equity,
Balanced Risk Allocation and Managed Liquidity Share Portfolios can be found in the Income Statement on page 57 and dividends per share paid in note 8 on page 65.
(5) Following the restructuring in May 2024 the Company’s dividend policy is to pay an annual dividend of at least 4%, calculated on the unaudited prior year-end NAV, paid
quarterly in equal amounts.
Total Return Statistics
(1)
(with dividends
reinvested)
Change for the year (%)
l
2025
l
2024
Net asset value (‘NAV’)
total return
(2)
11.9
21.0
Share price total return
(2)
24.6
26.9
Benchmark index
total return
(3)
7.4
21.6
STRATEGY – CHAIR’S STATEMENT
6 INVESCO GLOBAL EQUITY INCOME TRUST PLC
I am pleased to present your Company’s
Annual Report for the year ended 31 May
2025. This was the first full year following
the transformational restructuring and
simplification of your Company’s structure
in May 2024, creating a one share-class
vehicle focused on global equity income.
Your Board is delighted to report that, in
addition to your Portfolio Managers
delivering another year of strong absolute
and relative investment performance, the
investment merits of your Company are
now being recognised by investors. Since
the restructuring, the price at which the
shares trade relative to NAV has moved
from a discount of –13.0% (at 3 May
2024, the last trading day before the
restructuring became effective) to a
premium of +2.7% (at 30 July 2025, the
latest practicable date at the time of
writing).
I thank my Board colleagues (past and
present) and the Company’s Investment
Manager, broker and other advisers for their
part in your Company’s successful
transformation. However, most importantly,
I thank you, our shareholders, for your
ongoing support and welcome those who
have invested since the restructuring.
Market Overview
During the year, inflationary pressures,
central bank policy shifts and geopolitical
tensions continued to affect global equity
markets. However, the biggest impact
came from the outcome of the 2024 US
presidential election. Initial market
euphoria, triggered by hopes of tax cuts
and deregulation under Donald Trump’s
second term as US president, rapidly
evaporated with his erratic and chaotic
policy approach leading to increased
volatility across global financial markets.
In particular, his ‘Liberation Day’
announcement of US tariffs resulted in
widespread market declines and a spike
in US Treasury yields, economic growth
downgrades and heightened economic
uncertainty worldwide. There was a very
strong recovery in many markets
following the ‘tariff tantrum’ and global
equity markets ended the Company year
having delivered resilient returns,
masking the intra-year volatility.
Performance
Your Portfolio Managers’ rigorous process
around bottom-up stock selection
enabled them to weather the market
turbulence and capture attractive
opportunities.
The NAV total return per share was
+11.9%, compared with the Company’s
benchmark, the MSCI World Index (£),
total return of +7.4%, over the year.
A review of your Company’s investment
performance during the year, and
changes in the portfolio positioning, can
be found in the Portfolio Managers’
Report an pages 12 to 15 and in the
portfolio analysis on page 18.
The share price total return over the year
was +24.6%, with the price at which the
shares trade relative to their NAV having
Chair’s Statement
Sue Inglis
Chair
Highlights
• NAV total return of +11.9% over the
year, significantly ahead of benchmark
index total return of +7.4%.
• Share price total return of +24.6%,
reflecting share price moving from
discount of –8.7% to premium of +1.7%
over year.
• Reduction in shares in circulation of
–0.2% over year, with share buy-backs
in first nine months mostly offset by
sales of treasury shares in final quarter.
• Based on year-end NAV, projected
annualised dividend of 13.50p per
share for year ending 31 May 2026, a
7.8% increase compared to previous
year.
‘The Board is delighted to report that, in addition to
the Portfolio Managers delivering another year of
strong absolute and relative investment performance,
IGET’s shares have re-rated to trade at a premium to
NAV. The Company is now regularly issuing shares and
has raised £13.2 million since year end. Growing the
size of the Company should improve liquidity in the
shares and lead to a lower ongoing charges ratio, as
well as marginally enhancing the NAV per share.
We believe the Company is well positioned to navigate
what remains an uncertain period for global markets,
built on bottom-up stock selection and the disciplined,
long-term approach of the Portfolio Managers.’
Sue Inglis
STRATEGY – CHAIR’S STATEMENT
INVESCO GLOBAL EQUITY INCOME TRUST PLC 7
moved from a discount of –8.7% at the beginning of the year to
a premium of +1.4% at the year end. The average discount over
the year was –6.9% (2024: –13.2%).
Whilst, for the purpose of this Annual Report, we are required to
review your Company’s performance over its last financial year,
we believe that, in assessing the performance of the Investment
Manager (which we do at our quarterly Board meetings), longer
periods are more appropriate. Over the three and five years
ended 31 May 2025, the NAV total return per share was 48.6%
and 120.8% respectively, outperforming the benchmark index
total returns of 35.5% and 77.9% respectively.
Gearing
Your Company has a £40 million revolving credit bank loan
facility, which we extended on 23 April 2025 for a further year.
During the year, the Company’s net gearing position ranged from
a high of 6.3% to a net cash position (no borrowing) of 2.2%.
(2024: net gearing high of 1.7% to a net cash position of 3.6%).
At the year end, net gearing was nil (2024: net cash of 0.9%),
with £2.65 million (2024: £nil) drawn down under the loan
facility, equivalent to 1.2% (2024: n/a) of net assets.
Revenue and Dividends
Income and net revenue return per ordinary share for the year
amounted to £4,379,000 and 5.01p respectively (2024:
£7,433,000 and 9.03p respectively). This change reflects the
new structure of your Company, with a global strategy covering
all assets held as opposed to the majority of the prior year where
the three share classes closed as part of the Company restructure
towards the end of the financial year followed different investment
objectives, making direct comparison at a Company level less
relevant as markets now invested in offer lower yielding
companies but better total return prospects. The increase in net
assets of 7.5% over the financial year is reflective of the success
of this restructure.
One of the positive features of an investment trust is its ability to
pay dividends out of capital. At the time of last year’s
restructuring, the Board took advantage of this and adopted an
enhanced dividend strategy. This works by using the Company’s
capital reserves to supplement the underlying income the
portfolio generates and then paying this combined amount out
to shareholders as dividends. The advantage of this approach is
that, with no specific portfolio income targets, it allows freedom
for your Portfolio Managers to select the best ideas unhindered
and the Company to provide shareholders with an attractive level
of predictable income. Under the enhanced dividend strategy,
your Company pays an annual dividend of at least 4% of the
unaudited previous year-end NAV, paid quarterly in equal
amounts in August, November, February and May of each
financial year.
Your Company paid four interim dividends, each of 3.13p per
share, in respect of the year ended 31 May 2025. This equates
to 12.52p in total, being 4% of the NAV per share of 313.30p at
31 May 2024.
The NAV per share at 31 May 2025 was 337.36p. Accordingly,
in line with the enhanced dividend strategy, the total dividends
payable in respect of the year ending 31 May 2026 will be 13.50p
per share. This is an increase of 0.98p per share (or 7.8%) on the
total dividends paid in respect of the last year. The first interim
of 3.375p per share will be paid on 14 August 2025 to
shareholders on the register at the close of business on 25 July
2025 (the shares were marked ex-dividend on 24 July 2025).
Your Company is classified as an AIC ‘Next Generation Dividend
Hero’, with 15 consecutive years of dividend increases.
Appreciating that the reliability of income can be important for
shareholders, the Board expects, in normal market conditions, to
use the enhanced dividend strategy to keep your Company’s
status as an AIC ‘Next Generation Dividend Hero’.
Discount/Premium Management
During the period from 1 June 2024 to 4 February 2025, the
Company bought back 1,342,282 shares (equivalent to 2.1% of
the shares in circulation at the beginning of that period) at an
average discount of 9.8% and a total cost of £4.3 million. All
shares bought back are held in treasury and may be sold at a
premium to the NAV per share.
Shortly after 4 February 2025, the discount narrowed quickly
and, on 20 February 2025, the shares moved to trading at a
premium to their NAV. Over the remaining period to 31 May
2025, the shares traded at an average premium of 1.0% and
1,210,000 shares were sold from treasury (equivalent to 1.9% of
the shares in circulation at 31 May 2024) at an average premium
of 2.1%, raising £4.1 million in total.
Your Board is pleased to see that the strength of your Company’s
investment proposition is now being reflected in the price at which
the shares are trading relative to their NAV. However, your Board
recognises that a key concern for investors is not only the price
at which shares trade relative to their NAV, but also the volatility
in that relative price. So, your Board intends, in normal market
conditions, to actively use its share issue and buy-back authorities
to manage that volatility.
Marketing and Investor Engagement and
Communication
A key priority for your Board, both last year and in the current
year, is to increase your Company’s profile, broadening the
investor pool that is aware of its investment proposition and
strong investment track record. This is as important now, when
the shares are trading at a premium, as when they were trading
at a discount. Ultimately, your Board is looking to grow the size
of your Company which should bring added benefits of improved
liquidity in the shares and a lower ongoing charges ratio.
Engagement with our shareholders is of paramount importance.
Over the past year, your Investment Manager has welcomed
opportunities to meet with shareholders and potential
new investors, both virtually and in person, to discuss the
Company’s strategy, performance and outlook. We value
the feedback received. If you wish to communicate with the
Board or Investment Manager, please contact us by email
(investmenttrusts@invesco.com).
During the current year, we expect to enhance your
Company’s website and investor communication. If you have
not already done so, I would encourage you sign up for
updates on the Company and its portfolio and your Portfolio
Managers’ views. You can do this by scanning the QR code on
page 8 with your smartphone/device, visiting the Company’s
specific page on the Investment Manager’s website
at www.digitalservices.invesco.com/uk/en/investment-trusts-
subscriptions or contacting Invesco directly at
investmenttrusts@invesco.com.
Board Succession
As reported in my interim statement, I joined the Board on
10 October 2024 and succeeded Victoria Muir as Chair following
her retirement at the Annual General Meeting on 21 November
2024. Davina Curling also retired at the AGM. Helen Galbraith
joined the Board on 1 December 2024 as Chair-elect of the Audit
Committee.
STRATEGY – CHAIR’S STATEMENT
8 INVESCO GLOBAL EQUITY INCOME TRUST PLC
Craig Cleland, Chair of the Audit Committee, will be retiring at
this year’s AGM, having served nine years on the Board. On behalf
of the Board, I thank Craig for his valued contribution to your
Company and wish him all the best for the future.
Mark Dampier, Chair of the Marketing Committee, joined the
Board in 2021 when your Company merged with Invesco Income
Growth Trust plc, where he had served as a Director since 2016.
We will be looking to recruit a new Director in 2026 and Mark
intends to retire from the Board by next year’s AGM.
Annual General Meeting
I look forward to welcoming shareholders to the Company’s AGM
which will take place at 9.30am on Tuesday, 21 October 2025 at
the offices of Invesco Asset Management at 3rd Floor, 60 London
Wall, London, EC2M 5TQ. Light refreshments will be served.
A circular, including the notice of AGM and voting instructions,
will be sent to shareholders during September 2025.
Post-period End Update
Since the year end, the NAV total return per share and share
price total return were +7.7% and +9.2% respectively, compared
with the Company’s benchmark total return +7.7% (to 30 July
2025).
Since the year end, the Company has sold 3,610,000 shares from
treasury (equivalent to 5.7% of the shares in circulation at 31 May
2025) at an average premium of +1.9%, raising £13.2 million. At
30 July 2025, the shares were trading at a premium of +2.7%
and the yield on the shares was 3.6%, based on the projected
annualised dividend for the year ending 31 May 2026.
At the Company’s AGM in 2024, shareholders authorised the
Company to issue, or sell from treasury, shares representing
approximately 10% of the issued share capital (excluding treasury
shares) at that time. Due to the recent high level of demand for
the Company’s shares and the resulting sales of shares from
treasury, the current share issuance authority is likely to have
been fully utilised before this year’s AGM, which will be held on
21 October 2025. To enable the Company to continue meeting
demand, an additional general meeting has been convened for
14 August 2025 at which additional share issuance authorities
will be sought. A copy of the circular convening the general
meeting is available at www.invesco.com/uk/en/investment-
trusts/invesco-global-equity-income-trust.html.
Outlook
The constant barrage of geopolitical tensions and tariff disputes
has weighed on the global growth outlook, though levels of
uncertainty have eased somewhat since the financial year end.
Nonetheless, forecasting the year ahead remains inherently
difficult, particularly given the US president’s unpredictable
approach to policymaking.
Despite these headwinds, global equity market volatility has
largely normalised since the height of the ‘tariff tantrum’ as
investors appear more sanguine. While further bouts of equity
market volatility are likely, corporate fundamentals, particularly
in the US, remain broadly supportive. Valuations in other regions,
notably Europe and the UK, also appear relatively attractive,
offering compelling opportunities for selective investment.
In this environment, your Portfolio Managers will continue to
apply a disciplined, long-term approach, focusing on fundamental
stock selection to build a resilient, well-diversified portfolio
designed to perform across market cycles.
We remain confident that your Company is well positioned to
navigate uncertainty and continue to meet its long-term
objectives.
Sue Inglis
Chair
1 August 2025
IGET An expert team with a track record of
finding attractive companies at compelling prices
INVESCO GLOBAL EQUITY INCOME TRUST PLC 9
STRATEGY – PERFORMANCE RECORD
10 INVESCO GLOBAL EQUITY INCOME TRUST PLC
Performance Record
Total Return
For the year ended 31 May
2025 2024 2023 2022 2021
Net asset value
(1)
11.9% 21.0% 9.8% 9.6% 35.9%
Share price
(1)
24.6% 26.9% 4.6% 4.4% 32.6%
MSCI World Index (£)
(1)
7.4% 21.6% 3.8% 7.4% 22.3%
Revenue return per share 5.01p 9.03p 5.20p 4.85p 3.95p
Dividends 12.52p 7.35p 7.20p 7.15p 7.10p
(1) Source: LSEG Data & Analytics.
Five Year Total Return
Rebased to 100 at 31 May 2020
l
Share price
l
MSCI World Index (£)
l
Net asset value
l
Benchmark
(2)
Source: LSEG Data & Analytics.
80
100
120
140
160
180
200
220
240
May-25May-24May-23May-22May-21May-20
Ten Year Dividend History
(2)
(2) 2016 to 2024 dividends are those paid from the former Global Equity Income Share Portfolio prior to restructure on 7 May 2024. Dividends on the former
share classes, UK Equity Share Portfolio, Balanced Risk Allocation Share Portfolio and Managed Liquidity Share Portfolio, which closed on 7 May 2024 are not
disclosed.
2.0p
3.0p
4.0p
5.0p
6.0p
7.0p
8.0p
9.0p
10.0p
11.0p
12.0p
13.0p
2025202420232022202120202019201820172016
STRATEGY – PERFORMANCE RECORD
INVESCO GLOBAL EQUITY INCOME TRUST PLC 11
Historical Shareholder Returns from an Initial Investment of £1,000 on 31 May 2015
Annual Cumulative Capital Outcome if
Annual dividends dividends value (using dividends
dividends from from Mid-market mid-market reinvested on
per share
(1)(2)
investment
(1)(2)
investment
(1)(2)
share price share price) payment date
31 May pence £ £ pence £ £
2015 – – – 166.75 1,000 1,000
2016 6.00 35 35 156.00 936 972
2017 6.40 39 74 197.50 1,184 1,273
2018 6.70 40 114 202.00 1,211 1,345
2019 6.90 41 155 195.00 1,169 1,345
2020 7.05 42 197 176.50 1,058 1,263
2021 7.10 43 240 226.00 1,355 1,673
2022 7.15 43 283 229.00 1,373 1,748
2023 7.20 43 326 232.00 1,391 1,827
2024 7.35 44 370 286.00 1,714 2,318
2025 12.52 75 445 342.00 2,050 2,883
Source: LSEG Data & Analytics.
Returns on an Initial Investment of £1,000 in the Company
Ten Years to 31 May 2025
£0
£500
£1,000
£1,500
£2,000
£2,500
£3,000
20252024202320222021202020192018201720162015
Cumulative dividends from investment
(1)(2)
Annual dividends from investment
(1)(2)
Outcome if dividends reinvested on payment date
Capital value (using mid-market share price)
(1) Based on dividend payment dates.
(2) 2016 to 2024 dividends are those paid from the former Global Equity Income Share Portfolio prior to restructure on 7 May 2024.
STRATEGY – PORTFOLIO MANAGERS’ REPORT
12 INVESCO GLOBAL EQUITY INCOME TRUST PLC
How has the Company performed
in the year under review?
In a period marked by significant
market volatility, we are pleased to
report a net asset value total return
of 11.9%, outperforming the MSCI World
Index (£), which delivered a total return of
7.4%. We look to construct an all-weather
portfolio that can deliver strong performance
across market cycles. We aim for returns to
be driven by our individual stock selections
rather than by sector, geography or style
biases. In a constantly evolving geopolitical
and market environment, we’re encouraged
that this approach has delivered results over
the short and long term, with performance
supported by a broad and diverse range of
holdings.
Performance attribution (5-year)
Past performance does not predict future returns. Source: Invesco, monthly total returns in GBP
(gross of fees). Time period: 31 May 2020 to 31 May 2025. Attribution figures are estimates and
should be used for indicative purposes only.
What have been some of the
biggest contributors?
Broadcom delivered an
exceptional performance over the
year. Under the leadership of CEO
Hock Tan, the company is strategically
positioned to benefit from the accelerating
demand for AI infrastructure. Broadcom’s
expertise in custom Application-Specific
Integrated Circuits (ASICs) enables clients
to perform AI workloads more efficiently
and cost-effectively than with traditional
Graphics Processing Units (GPUs). As one
of only two major players in this space,
Broadcom has secured significant new
business and deepened relationships with
existing customers.
Rolls-Royce continues to build momentum
under CEO Tufan Erginbilgic. The company
has experienced a strong recovery in
revenues, coupled with disciplined cost
control, resulting in profit growth. This
financial strength has enabled the
reinstatement of dividends. With ambitious
plans, we remain optimistic about the
company’s trajectory.
3i Group had another strong year, driven
by the continued expansion of Action, its
European discount retail holding. As Action
has grown to represent a larger share of
3i’s net asset value, the market has
re-rated 3i’s valuation to more closely
reflect that of Action. While this reduces
the margin of safety, we believe it is a
rational adjustment. We continue to see
significant growth potential ahead and are
encouraged by the stewardship of CEO
Simon Borrows and his team.
Q
A
Q
A
Portfolio Managers’ Report
Q&A
Portfolio Manager
Stephen Anness, Head of Global Equities
Stephen is head of the Henley-based Global Equities
team and manages the global equity income strategy.
He specialises in managing concentrated global equity
portfolios. He took over responsibility for the
Company’s Global Equity Income Share Portfolio in
January 2020.
Stephen began his investment career within the
Henley UK Equities team, joining Invesco in July 2002
as a trainee analyst. Having come through the
investment team ranks, Stephen started managing UK
equity portfolios in September 2004 and took on the
management of his first UK fund in 2008, before
moving to the Henley Global Equities team at the end
of 2012.
Stephen holds a BSc in Economics, the Securities
Institute Diploma and the Investment Management
Certificate from the CFA Society of the UK and has
studied Corporate Finance at The London Business
School.
Deputy Portfolio Manager
Joe Dowling, Deputy Portfolio Manager
Joe is a fund manager in the Henley-based Global
Equities team, managing portfolios in the global
founders and owners and global equity income and
growth strategies.
After working for Invesco over two separate
internships whilst studying at Bath University, Joe
returned to work as an analyst for the Henley-based
Global Equities team full-time in July 2013. During his
internship, he rotated through the Henley investment
community’s global equity, global equity income and
global smaller companies groups.
Joe holds a BSc in Business Administration from the
University of Bath and the Investment Management
Certificate from the CFA Society of the UK.
‘It isn’t often in your career that almost every business in
the market goes on sale, as it did in April following
‘Liberation Day’. There were many businesses on our
shopping list that we had been waiting to buy, and many
of those went on sale. This is potentially a very exciting
time for future returns.’
Stephen Anness
STRATEGY – PORTFOLIO MANAGERS’ REPORT
INVESCO GLOBAL EQUITY INCOME TRUST PLC 13
Top contributors Average Average
portfolio benchmark Attribution
Name weight % weight % effect %
Rolls-Royce 4.5 0.1 3.2
3i Group plc 5.4 0.1 1.9
Broadcom 2.8 1.2 1.8
Standard Chartered 2.9 – 1.2
Apple 0.4 4.8 0.6
And detractors?
Azelis faced a challenging year in equity markets, yet
the underlying business has demonstratedimpressive
resilience. Despite navigating one of the most
significant chemical industry downturns in recent history, Azelis
has managed to grow both revenues and profits from 2022
through to 2024. This performance stands out, particularly when
compared to peers in similarly cyclical sectors that have
experienced sharp earnings declines. We believe the company is
well positioned for a potential re-rating and continued earnings
growth, and we have maintained our position.
LVMH was another key detractor during the period. The company
has faced several headwinds, including economic softness in
China, operational missteps in certain divisions and a broader
post-Covid normalisation across the luxury sector. Nevertheless,
we remain confident in LVMH’s long-term prospects. Its portfolio
of iconic brands and the leadership of founder-owner Bernard
Arnault (who remains highly aligned and focused) provide a
strong foundation for recovery and renewed growth.
Top detractors Average Average
portfolio benchmark Attribution
Name weight % weight % effect %
Azelis Group 3.2 – –1.2
LVMH 2.2 0.3 –1.0
Verallia 2.1 – –0.8
Novo Nordisk 1.3 0.5 –0.7
Texas Instruments 3.7 0.3 –0.7
How do you structure the portfolio?
We take a flexible, stock-picking approach to investing,
guided by three key opportunity pools.
The core of our portfolio is made up of dividend
companies with a strong track record of consistently growing their
dividends over time. These businesses form the foundation of our
long-term value creation strategy and can represent between
70-100% of the fund depending on what opportunities the market
presents.
In addition, we allocate up to 20% of the portfolio to high-growth
companies that may offer little or no yield today but demonstrate
exceptional capital allocation and a clear roadmap to per share
value creation. These are businesses we believe can deliver
outsized returns through disciplined reinvestment and scalable
growth.
Finally, up to 10% of the portfolio is reserved for turnaround
opportunities - companies currently facing temporary challenges
but with credible plans to restore their dividends. These positions
allow us to add balance and contrarian value to the portfolio.
This flexibility has been key in helping us to build a balanced
‘all-weather’ portfolio that has been resilient and outpaced the
index through some of the most turbulent markets in recent
history.
Any interesting new purchases recently?
On average there was higher turnover than usual as
volatility has provided some exciting new opportunities,
across a range of sectors and geographies! Here are just
a handful of examples of new additions to the portfolio:
ASML: ASML is a Dutch-listed technology leader at the heart of
the semiconductor industry. Its advanced lithography machines
are essential for producing the smallest, most powerful chips that
are critical for technologies like AI, 5G and beyond.
The company holds a near-monopoly in extreme ultraviolet (EUV)
lithography, a position that makes it deeply embedded in its
customers’ operations and difficult to displace. With a strong
balance sheet and minimal disruption risk, ASML is a foundational
player in a structurally growing industry.
Following a significant pullback in its share price, we found an
attractive long-term entry point into one of the most strategically
important companies in global tech.
Viking Holdings: Viking stands out as a founder-led cruise
operator with industry leading margins, returns and growth. The
company made bold investments during the pandemic, securing
a long-term ship order book that positions it well for years of
supply growth.
At the same time, capacity has exited in the market, creating a
supply-demand imbalance that should support strong pricing and
occupancy for the foreseeable future. Cruise penetration remains
low globally, suggesting a significant runway for growth.
While there are concerns about consumer spending, cruising has
historically proven resilient even during downturns. Viking’s strong
fundamentals and disciplined execution make it well-placed to
benefit from long-term tailwinds, despite near-term market
caution.
QXO: QXO is a building products distributor. The company
distributes roofing, waterproofing and other such products across
the United States, and is the largest publicly traded distributor in
the industry. Brad Jacobs has a rare talent of building giants out
of fragments. As the founder and CEO of QXO, he’s once again
setting out to transform a fragmented industry, this time building
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STRATEGY – PORTFOLIO MANAGERS’ REPORT
14 INVESCO GLOBAL EQUITY INCOME TRUST PLC
materials distribution. And if history is any guide, he’s got the
playbook to do it.
Over the past four decades, Jacobs has launched or scaled
multiple multibillion-dollar businesses, often starting in industries
where he had no prior experience. From United Waste Systems
in the late 1980s, to United Rentals in the 1990s, to XPO
Logistics in the 2010s (and its spin-offs GXO and RXO), he’s
followed a remarkably consistent strategy: find inefficiencies,
consolidate aggressively, inject technology and scale with
discipline.
Do you still feel like you have an edge on the market
given how fast things move?
The market has changed for active managers, and the
pace of change is accelerating. A growing share of
market participants now operate with very different time
horizons and objectives to ours. These include multi-manager
hedge funds, trend followers (momentum chasers) and volatility-
focused risk managers. Meanwhile, longterm discretionary
investors, once key to price discovery and liquidity, are losing
influence.
Today, more capital is focused on short-term moves (from
minutes to weeks), and less on long-term fundamentals.
Information flows faster than ever, and markets react more
quickly, leaving less time to respond thoughtfully. Positions that
take years to build can be unwound in days, often for reasons
unrelated to capital.
In this environment, our structural advantages matter more, if we
use them decisively:
• We have the rare benefit of a genuine 3-5 year investment
horizon.
• Our small team can move quickly, without needing to deal
with layers of bureaucracy or committee-led decision making.
• We’ve been through drawdowns together and have built a
clear playbook.
• We know our companies well and are confident in our
research, even when the market disagrees.
What are your thoughts on AI?
AI is evolving at extraordinary speed, and businesses are
beginning to adopt generative tools in meaningful ways.
This could have far-reaching implications for productivity,
profitability and competitive dynamics.
For knowledge-based industries, AI has the potential to
significantly boost output with fewer resources. Companies that
successfully integrate AI to enhance their customer offering could
see faster growth and stronger margins.
But not all businesses will benefit. In some cases, AI may weaken
a company’s value proposition or introduce new forms of
competition. Google Search being a prime example.
As the pace of change accelerates, the risk of business model
disruption rises.
In this environment, we’re focused on backing adaptable,
entrepreneurial management teams and staying open-minded
about how AI might reshape industries. The winners could be
significant, but so could the risks.
How are you thinking about the macro given there is
so much going on?
The investment landscape in 2025 has been shaped as
much by government policy as by fundamentals.
European defence stocks have re-rated sharply following
a major shift in military spending. In contrast, healthcare has
de-rated due to proposed policy changes, including pressure on
US drug pricing and reduced government support. Trade tensions
have also had an impact. The US dollar has weakened over 10%
on tariff concerns, creating headwinds for European exporters.
Some global businesses are being forced to rethink their supply
chains, though many are holding off on major investment
decisions until there’s more clarity.
Our focus has been on distinguishing between policy changes that
will have lasting effects and those that are likely to prove
temporary. This helps us stay aligned with businesses that can
adapt and thrive through uncertainty.
Can you describe how you have taken advantage of the
volatility and used it as an opportunity?
Stay focused on the long term. As mentioned earlier,
we draw on our experience from pervious crises and
what that has taught us is that short-term volatility is
usually a source of opportunity to optimise the portfolio. The
muscle memory from managing money through various crises
allows us to block out the noise and stay focused on the best
risk/return opportunities that are presented at the stock level.
Re-test the thesis. We aim to buy good companies that have
strong balance sheets and are run by management teams we
trust. If any of these critical elements are no longer true then we
may recycle capital, that is, sell existing investments and
reallocate the proceeds into more attractive opportunities. The
kind of questions we are asking ourselves are as follows: Has their
market position changed? Has their industry changed? What can
management do to take advantage of new opportunities?
Concentrate on the best risk/reward opportunities. It isn’t often
in your career that almost every business in the market goes on
sale, as it did in April following ‘Liberation Day’. There were many
businesses on our shopping list that we had been waiting to buy,
and many of those went on sale. This is potentially a very exciting
time for future returns.
Any final thoughts on the outlook?
Uncertainty still exists as to the end game for US tariffs
and potential retaliation and countermeasures from
other countries. This has an impact on investment and
hiring decisions for many businesses. While slowing growth and
economic uncertainty are the focus for market participants today,
any resolution on tariffs or evidence that the US administration
is to be successful in igniting the private sector would shift the
emphasis. We choose not to second guess these outcomes, rather
focusing our time and energy on building a diversified portfolio
of high-quality businesses, trading at attractive valuations from
the bottom-up. Diversification is key in this market as we can’t
rely on one definitive economic outcome. We will continue to work
through the economic implications at an individual business level,
but with the focus entirely on building a robust portfolio.
Stephen Anness Joe Dowling
Portfolio Manager Deputy Portfolio
Manager
1 August 2025
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STRATEGY – PORTFOLIO MANAGERS’ REPORT
INVESCO GLOBAL EQUITY INCOME TRUST PLC 15
Stock spotlight: 3i Group
At the heart of our investment philosophy is a simple but powerful belief: consistent long-term performance is most likely
when we focus on three core pillars: quality, cashflow and price.
Quality means investing in businesses that can endure and thrive across economic cycles. These companies typically possess
durable competitive advantages, robust fundamentals and minimal exposure to material ESG risks.
Cashflow is the clearest indicator of a company’s financial health. Strong free cashflow enables businesses to reinvest for
growth, return capital to shareholders through dividends and buybacks and maintain a healthy balance sheet.
Price is the final piece of the puzzle. We seek to invest only when we can purchase a high-quality, cash-generative business
at a meaningful discount to its intrinsic value. Valuation discipline is essential to long-term investment success.
One of the most fertile areas for finding companies that meet all three criteria is among dividend compounders: businesses
with a consistent track record of growing dividend payments. As noted above, these companies currently make up over 70%
of our portfolio.
A standout example is 3i Group, a London-based private equity firm with a rich history dating back to its founding by the
Bank of England after World War II. What makes 3i particularly compelling is its largest holding: Action, Europe’s fastest-
growing discount retailer.
We view Action as one of the continent’s most exceptional businesses. An underappreciated gem hidden within a financial
holding company. Its motto, ‘small prices, big smiles’, reflects a business model that combines affordability with operational
excellence.
With over 3,000 stores across 13 European countries and plans to open 370 new locations annually by 2026, Action has a
long runway for growth. Remarkably, new stores typically achieve payback within a year, an extraordinary testament to the
company’s cash-generating power. Over the past five years, dividend growth has exceeded 10% per annum.
More broadly, 3i’s portfolio is managed with discipline and a clear focus on shareholder value. The management team has
demonstrated strong cost control and capital allocation, reinforcing our conviction in the long-term potential of this
investment.
STRATEGY – INVESTMENT TEAM AND PROCESS
16 INVESCO GLOBAL EQUITY INCOME TRUST PLC
Investment Team and Process
The Company’s award-winning Portfolio Manager, Stephen Anness aided by the Deputy Portfolio Manager, Joe Dowling, perform
in-depth research on a broad range of companies. Their dual portfolio manager/analyst roles ensure that they have in-depth knowledge
of each portfolio holding. Stephen and Joe are supported by a team of nine investment professionals within the Global Equities team.
They also have the resources of the other Henley-based regional equity teams as well as the wider Invesco investment professionals.
However, all research is conducted and maintained within the Global Equity team and Stephen is the final decision maker.
Source: Invesco as at 30 June 2025. Years are subject to rounding.
(1) Years experience.
(2) Years tenure.
Our rigorous 5-step investment process (’IDEAS’) is designed to allow us to systematically identify fundamentally excellent
businesses.
We have a truly bottom-up approach. We build our own detailed financial models and write our own detailed research. We diligently
update our models and re-underwrite our investment cases quarterly.
We have a very strong focus on risk management, which is embedded through every stage of the process. It starts with a granular
analysis of the quality of the company’s accounting, balance sheet position and management incentives. At the portfolio level, we
have an intense focus on managing correlation and risk to ensure we are not overly exposed to any particular factor or theme.
Various sources: internal investment teams, sell side, quantitative tools
and reading to uncover new ideas.
Establishing the most promising ideas and designed to prioritise our
research efforts.
This is where the team spends most of their time, day to day. The aim is to
form a deep view of the business, which includes building our own models.
The stage where the idea is examined within the broader context of the
portfolio.
Portfolio optimisation focussed on things like adherence to parameters,
stock comparison sheet and ongoing team discussions and challenges.
Identify
Determine
Evaluate
Approve
Structure
I
D
E
A
S
Sourcing ideas
Building
conviction
Implementation
STRATEGY – TOP 10 HOLDINGS
INVESCO GLOBAL EQUITY INCOME TRUST PLC 17
Top 10 Holdings (%)
l
Company
l
Index
l
Active – represents the over/(under)weight of the holding in the portfolio relative to the benchmark index
3i – Financial sector
3i is a UK-listed private equity business. What particularly attracts us
to 3i is its biggest holding, Action – Europe’s fastest-growing non-food
discount retailer.
Rolls-Royce – Industrials sector
Rolls-Royce primarily manufactures aero, marine and industrial
turbines for civil and military aircraft.
Canadian Pacific Kansas City – Industrials sector
The only single-line railway connecting Canada, the US and Mexico,
offering a seamless freight service across North America’s key trade
corridors.
Microsoft – Technology sector
Microsoft is one of the leading technology companies offering a wide
range of products and services ranging from cloud computing
solutions to business enterprise software.
Coca-Cola Europacific Partners – Consumer Staples sector
The world’s largest Coca-Cola bottler by revenue, operating
across 31 markets in Europe, Australia, the Pacific and Southeast Asia.
Broadcom – Technology sector
Broadcom designs, develops, and supplies semiconductor and
infrastructure software solutions.
AIA – Financial sector
AIA Group is a Hong Kong-listed insurance company serving
customers primarily in Southeast Asia.
Texas Instruments – Technology sector
Texas instruments operates as a semiconductor design and
manufacturing company, producing analog and embedded
processors.
Standard Chartered – Financials sector
A leading international banking group with a strong presence in Asia,
Africa and the Middle East, leveraging its diversified network to deliver
consistent growth and resilient performance.
Novo-Nordisk – B Shares – Health Care sector
A global healthcare leader specialising in diabetes, obesity and rare
disease treatments, with a strong innovation pipeline and a major
share in the global GLP-1 diabetes market.
5.7
0.1
5.6
5.0
4.5
0.5
4.1
0.0
4.1
5.8
0.1
5.7
3.7
0.2
3.5
5.4
0.1
5.3
3.7
0.1
3.6
4.0
1.5
2.5
3.2
0.0
3.2
3.00
0.3
2.7
STRATEGY – PORTFOLIO ANALYSIS
18 INVESCO GLOBAL EQUITY INCOME TRUST PLC
Country Over/underweights (%)
As at 31 May 2025 12 month country weighting change
Company Index Active
United Kingdom 22.9 3.3 19.6
Netherlands 4.7 1.2 3.5
Hong Kong 3.7 0.5 3.2
Italy 3.9 0.8 3.1
Taiwan 2.7 0.0 2.7
Denmark 3.1 0.6 2.5
Belgium 2.6 0.2 2.4
Canada 5.4 3.2 2.2
Norway 2.4 0.1 2.3
Austria 0.0 0.1 –0.1
New Zealand 0.0 0.1 –0.1
Brazil 0.0 0.2 –0.2
Other 0.0 0.2 -0.2
Israel 0.0 0.2 –0.2
Finland 0.0 0.3 –0.3
Ireland 0.0 0.4 –0.4
Singapore 0.0 0.4 –0.4
Switzerland 1.7 2.4 –0.7
Spain 0.0 0.8 –0.8
Sweden 0.0 0.9 –0.9
France 1.4 2.6 –1.2
Australia 0.0 1.8 –1.8
Germany 0.0 2.6 –2.6
Japan 1.7 5.6 –3.9
United States 43.8 71.5 –27.7
–4.4 France
–2.8 United States
–1.4 Italy
–0.9 Belgium
–0.9 South Korea
–0.6 Switzerland
–0.1 Norway
+0.2 Netherlands
+0.6 Denmark
+0.6 Hong Kong
+1.7 Taiwan
+1.7 Japan
+2.2 United Kingdom
+4.1 Canada
–5 –4 –3 –2 –1 0 1 2 3 4 5
12 month sector weighting change
Sector Over/underweights (%)
As at 31 May 2025
Company Index Active
Industrials 30.4 11.5 18.9
Financials 24.7 17.2 7.5
Real Estate 2.4 2.1 0.3
Consumer Services 1.5 1.9 –0.4
Consumer Staples 5.3 6.3 –1.0
Energy 2.4 3.5 –1.1
Health Care 7.2 9.9 –2.7
Utilities 0.0 2.7 –2.7
Materials 0.0 3.3 –3.3
Communication Services 4.4 8.2 –3.8
Consumer Discretionary 3.5 8.5 –5.0
Information Technology 18.2 24.9 –6.7
–3.5 Consumer Discretionary
–3.3 Materials
–2.6 Consumer Staples
–2.0 Financials
–1.1 Communication Services
–1.1 Health Care
–0.4 Real Estate
–0.1 Energy
≠+0.0 Utilities
+0.8 Information Technology
+1.5 Consumer Services
+11.8 Industrials
–4–2024681012
STRATEGY – LIST OF INVESTMENTS
INVESCO GLOBAL EQUITY INCOME TRUST PLC 19
List of Investments
At market
value % of
Company Industry
(1)
Country £’000 portfolio
3i Financial Services United Kingdom 12,157 5.8
Rolls-Royce Capital Goods United Kingdom 12,072 5.7
Canadian Pacific Kansas City Transportation Canada 11,489 5.4
Microsoft Software & Services United States 10,608 5.0
Coca-Cola Europacific Partners Food, Beverage & Tobacco United Kingdom 8,628 4.1
Broadcom Semiconductors & Semiconductor Equipment United States 8,376 4.0
AIA Insurance Hong Kong 7,903 3.7
Texas Instruments Semiconductors & Semiconductor Equipment United States 7,792 3.7
Standard Chartered Banks United Kingdom 6,836 3.2
Novo-Nordisk - B Shares Pharmaceuticals, Biotechnology & Life Sciences Denmark 6,447 3.0
Top Ten Holdings 92,308 43.6
Universal Music Media & Entertainment Netherlands 6,146 2.9
East West Bancorp Banks United States 6,140 2.9
Taiwan Semiconductor Manufacturing Semiconductors & Semiconductor Equipment Taiwan 5,606 2.7
London Stock Exchange Financial Services United Kingdom 5,567 2.6
Azelis Capital Goods Belgium 5,448 2.6
Ferguson Capital Goods United States 5,237 2.5
American Tower Equity Real Estate Investment Trusts (REITs) United States 5,023 2.4
Recordati Pharmaceuticals, Biotechnology & Life Sciences Italy 5,021 2.4
Aker BP Energy Norway 5,009 2.4
Herc Holdings Capital Goods United States 4,680 2.2
Top Twenty Holdings 146,185 69.2
Tractor Supply Consumer Discretionary Distribution & Retail United States 4,443 2.1
Corpay Financial Services United States 4,323 2.0
XPO Industrial Transportation United States 4,298 2.0
KKR & Co Financial Services United States 4,014 1.9
QXO Capital Goods United States 3,984 1.9
ASML Semiconductors & Semiconductor Equipment Netherlands 3,795 1.8
Abbott Laboratories Health Care Equipment & Services United States 3,734 1.8
Itochu Capital Goods Japan 3,681 1.7
Ametek Capital Goods United States 3,667 1.7
Zurich Insurance Insurance Switzerland 3,534 1.7
Top Thirty Holdings 185,658 87.8
AT 31 MAY 2025
Ordinary shares unless stated otherwise
STRATEGY – LIST OF INVESTMENTS
20 INVESCO GLOBAL EQUITY INCOME TRUST PLC
Infrastrutture Telecommunication Services Italy 3,268 1.5
Howden Joinery Capital Goods United Kingdom 3,211 1.5
Viking Holdings Travel & Leisure United States 3,147 1.5
Union Pacific Transportation United States 3,014 1.4
LVMH Consumer Durables & Apparel France 2,982 1.4
Estee Lauder - A Shares Household & Personal Products United States 2,519 1.2
Amentum Commercial & Professional Services United States 2,492 1.2
Analog Devices Semiconductors & Semiconductor Equipment United States 2,432 1.2
CME Financial Services United States 1,091 0.5
Old Dominion Freight Line Transportation United States 1,038 0.5
Top Forty Holdings 210,852 99.7
Progressive Insurance United States 592 0.3
Sberbank
(2)
– ADR Banks Russia – –
Harbinger – Streamline Offshore Fund
(3)
Hedge Funds Cayman Islands – –
Total Holdings 43 (31 May 2024: 42) 211,444 100.0
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.
(1) MSCI and Standard & Poor’s Global Industry Classification Standard.
(2) 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.
(3) The hedge fund investment is a residual holding of one of the previous investment strategies, transferred from the Balanced Risk Allocation Portfolio as
part of the Company’s restructure in May 2024, which is awaiting realisation of underlying investments. Given lack of availability of recent valuation, the
market value has been written-down to zero.
At market
value % of
Company Industry
(1)
Country £’000 portfolio
STRATEGY – ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE (‘ESG’) STATEMENT
INVESCO GLOBAL EQUITY INCOME TRUST PLC 21
Environmental, Social and Corporate
Governance (‘ESG’) Statement from the
Portfolio Managers
What does ESG mean to us?
Our focus as active portfolio managers is always on finding
mispriced stocks and ESG integration underpins our investment
process.
The incorporation of ESG into our investment process considers
ESG factors as inputs into the wider investment process as part
of a holistic consideration of the investment risk and opportunity,
from valuation through investment process to engagement and
monitoring. The core aspects of our ESG philosophy include:
materiality; ESG momentum; and engagement.
• Materiality refers to the consideration of ESG issues that are
financially material to the company we are analysing.
• The concept of ESG momentum, or improving ESG
performance over time, indicates the degree of improvement
of various ESG metrics and factors and help fund managers
identify upside in the future. We find that companies which
are improving in terms of their ESG practices may enjoy
favourable financial performance in the longer term.
• Engagement is part of our responsibility as active owners
which we take very seriously, and we see engagement with
companies as an opportunity to encourage continual
improvement. Dialogue with portfolio companies is a core part
of the investment process for our investment team. As such,
we often participate in board level dialogue and are
instrumental in giving shareholder views on management,
corporate strategy, transparency and capital allocation as well
as wider ESG aspects.
ESG integration is an ongoing strategic effort to systematically
incorporate ESG factors into fundamental analysis. As illustrated
by the diagram below, the aim is to provide a 360 degree
evaluation of financial and non-financial materially relevant
considerations and to help guide the portfolio strategy.
Our investment process has five stages. In this report we go
through in detail how ESG is integrated into each stage of the
investment process.
Stephen Anness
Head of Global Equities
Joe Dowling
Global Equities Fund Manager
• We draw upon ESGintel, Invesco’s proprietary tool, which helps us to better understand
how companies are addressing ESG issues
• Engaging with companies to understand corporate strategy today in order to assess how
this could evolve in the future
• Monitoring how companies are performing from an ESG perspective and if the valuations
fairly reflect the progress being made
Idea Generation
We believe it is important to spread our nets as wide as possible
when trying to come up with stock ideas which may find their way
into our portfolios. We remain open minded as to the type of
companies we will consider. This means not ruling out companies
just because they happen to be unpopular at that time and vice
versa. Focusing on fundamentals and the broader investment
landscape can be a unique way for our portfolios to potentially
generate returns in excess of the benchmark as those businesses
that have got ESG momentum behind them have the potential to
be rerated.
Fundamental Research & ESG Analysis
Research is at the core of what we do. Our fundamental analysis
covers many drivers, for example, corporate strategy, market
positioning, competitive dynamics, the macroeconomic
environment, financials, regulation, valuation and, of course, ESG
considerations, which guide our analysis throughout.
We use a variety of tools from different providers to measure ESG
factors. In addition, at Invesco, we have developed ESGintel,
Invesco’s proprietary tool built by our Global ESG research team
in collaboration with our Technology Strategy Innovation and
Planning (SIP) team.
ESGintel provides Invesco with environmental, social and
governance insights, metrics, data points and direction of change.
In addition, ESGintel offers Invesco an internal rating on a
company, a rating trend and a rank against sector peers. The
approach ensures a targeted focus on the issues that matter most
for sustainable value creation and risk management.
This provides a holistic view on how a company’s value chain is
impacted in different ways by various ESG topics, such as
compensation and alignment, health and safety and low carbon
transition/climate change.
We always try to meet with a company prior to investment. Based
on our fundamental research, including any ESG findings, we
focus on truly understanding the key drivers and, most
importantly, the path to change. This helps us better understand
corporate strategy today and how this could evolve in the future.
Portfolio Construction
We aim to create a well-diversified portfolio of active positions
that reflect our assessment of the potential upside for each stock
weighted against our assessment of the risks. Sustainability and
ESG factors are assessed alongside other fundamental drivers of
valuation. The impact of any new purchases will need to be
considered at a portfolio level. How will it affect the shape of the
portfolio having regard to objectives, existing positions, overall
size of the portfolio, liquidity and conviction.
We do not seek out stocks which score well on internal or third
party research simply to reduce portfolio risk.
Ongoing Monitoring
Our team continuously monitors how the stocks are performing
as well as considering possible replacements. Is the company
performing from an ESG perspective and are the valuations fairly
reflecting the progress being made or not?
How do we monitor our holdings from an ESG perspective? Again,
the same resources used during the fundamental stage are
available to us. Our regular meetings with the management teams
of the companies we own provides an ideal platform to discuss
key ESG issues, which will be researched in advance. We draw on
our own knowledge as well as relevant analysis from our ESG
team and data from our previously mentioned proprietary system
ESGintel which allows us to monitor progress and improvement
against sector peers. Outside of company management meetings
we constantly discuss as a team all relevant ESG issues, either
stimulated internally or from external sources.
Challenge, Assessing & Monitoring Risk
In addition, there are two more formal ways in which our
portfolios are monitored:
There is a rigorous semi-annual review process which includes a
meeting led by the ESG team to assess how our portfolios are
performing from an ESG perspective. This ensures a circular
process for identifying flags and monitoring of improvements over
time. These meetings are important in capturing issues that have
developed and evolved whilst we have been shareholders.
There is also the ‘CIO challenge’, a formal review meeting held
between Joe and I individually and the Henley Investment
Centre’s Chief Investment Officer (CIO) and each fund manager.
This review includes a full breakdown of the ESG performance
using Sustainalytics and ISS data, such as the absolute ESG
performance of the portfolio, relative performance to
benchmarks, stocks exposed to severe controversies, top and
bottom ESG performers, carbon intensity and trends. The ESG
team review the ESG data and develop stock specific or thematic
ESG questions. The ESG performance of the portfolio is discussed
with the CIO using the data and the stock specific questions to
analyse the fund manager’s level of ESG integration. The aim of
these meetings is not to prevent us from holding any specific
stock: rather, what matters is that we can evidence understanding
of ESG issues and show that they have been taken into
consideration when building the investment case.
STRATEGY – ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE (‘ESG’) STATEMENT
22 INVESCO GLOBAL EQUITY INCOME TRUST PLC
STRATEGY – ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE (‘ESG’) STATEMENT
INVESCO GLOBAL EQUITY INCOME TRUST PLC 23
Voting Policy
The Global Equity Team’s corporate engagement specialists
review AGM and EGM proposals taking into account our own
knowledge of the companies in which our funds are invested, as
well as the comments and recommendations of ISS
(1)
, Glass Lewis
and IVIS
(2)
. In addition, Invesco provides proprietary proxy voting
recommendations and publishes these recommendations via its
PROXYintel platform.
Especially where there are situations of controversy or differing
views between the consultants mentioned above we will draw on
the additional expertise of our internal ESG team.
There will be times when we will follow the recommendations
made by ISS, Glass Lewis and IVIS but times where we disagree
with the stance being taken. Voting in line with management
recommendations should not be seen as evidence of a lack of
challenge on our part, but rather that either the governance of
the companies in which we are invested is already good and
worthy of support or we have engaged with the company and our
concerns have been addressed satisfactorily.
Total Total
Category Number (%)
Ballots voted 44 100
Ballots against management recommendations 13 30
Ballots against ISS recommendations 21 48
Source: Invesco, relates to the period 1 June 2024 to 31 May 2025 for the
Invesco Global Equity Income Trust plc.
(1) ISS – Institutional Shareholder Services .
(2) IVIS – Institutional Voting Information Service.
Conclusion
The regulatory landscape is rapidly evolving, which increasingly compels organisations and investors alike to clearly demonstrate
their awareness of ESG issues in their decisions. Landmark initiatives such as the European Union’s new Sustainable Finance Disclosure
Regulation (SFDR) are at the forefront of this shift.
We believe that our approach is fair, coherent and pragmatic. Whilst we consider ESG aspects, we are not bound by any specific ESG
criteria and have the flexibility to invest across the ESG spectrum from best to worst in class, but we think that the principles behind
ESG deserve to be embedded in an investment framework which encourages positive change. Coupling this with a focus on valuation
is, to our minds, the best way to deliver strong investment outcomes for our clients long term. 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 of ESG integration.
Engagements in 2024
Our ESG interactions with companies typically occur in group or 1:1 calls between our fund manager(s)/analyst(s) and corporate
representative(s).
We strive to meet with companies in order to better understand the management team and their focus and outlook, and to bring up
any concerns and suggestions; this can often cover ESG.
Total ESG Engagements
Company % of
meetings times
Company where E/S/G Combinations E/S/G
Period meetings was discussed of E/S/G E only S only G only discussed
2024 142 55 17 8 7 23 39%
Source: Invesco, Data relates to the Henley-based Global Equities team, as at 31 December 2024.
STRATEGY – BUSINESS REVIEW
24 INVESCO GLOBAL EQUITY INCOME TRUST PLC
Business Review
Purpose, Business Model and Strategy
Invesco Global Equity Income Trust plc is an
investment company and its investment
objective is set out below. The strategy the
Board follows to achieve that objective is to set
investment policy and risk guidelines, together
with investment limits, and to monitor how they
are applied. These are also set out below and
have been approved by shareholders.
The Company’s purpose is to generate returns for shareholders
by investing their pooled capital to achieve the Company’s
investment objective through the application of its investment
policy and with the aim of spreading investment risk.
The business model the Company has adopted to achieve its
investment objective has been to contract out investment
management and administration to appropriate external service
providers, which are overseen by the Board.
The principal service provider is Invesco Fund Managers Limited,
which throughout this report is referred to as ‘the Manager’.
Invesco Asset Management Limited, an associate company of the
Manager, manages the Company’s investments and acts as
Company Secretary under delegated authority from the Manager.
References to the Manager should consequently be considered
to include both entities.
The Manager provides company secretarial, sales, marketing and
general administration services including accounting and
manages the portfolio in accordance with the Board’s strategy.
Stephen Anness and Joe Dowling are the Portfolio Managers
responsible for the day-to-day management of the portfolio.
The Company also has contractual arrangements with MUFG
Corporate Markets to act as registrar and the Bank of New York
Mellon (International) Limited (BNYMIL) as depositary and
custodian.
Investment Objective
The Company’s investment objective aims 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.
Investment Policy and Risk
The portfolio will be invested predominantly in a portfolio of listed,
quoted or traded equities worldwide, but may also hold other
securities from time to time including, inter alia, fixed interest
securities, preference shares, convertible securities and
depositary receipts. Investment may also be made in regulated
or authorised collective investment schemes. The portfolio will
not invest in companies which are not listed, quoted or traded at
the time of investment, although it may have exposure to such
companies where, following investment, the relevant securities
cease to be listed, quoted or traded. The Manager will at all times
invest and manage the portfolio’s assets in a manner that is
consistent with spreading investment risk, but there will be no
rigid industry, sector, region or country restrictions.
The portfolio may utilise derivative instruments including
index-linked notes, contracts for differences, covered options and
other equity-related derivative instruments for efficient portfolio
management and investment purposes. Any use of derivatives
for investment purposes will be made on the basis of the same
principles of risk spreading and diversification that apply to the
portfolio’s direct investments, as described above.
It is expected that, typically, the portfolio will hold between
40 and 60 securities.
The Directors believe that the use of borrowings can enhance
returns to shareholders, and the Company may use borrowings
in pursuing its investment objective.
The Company’s foreign currency investments will not be hedged
to sterling as a matter of general policy. However, the Manager
may employ currency hedging, either back to sterling or between
currencies (i.e. cross hedging of portfolio investments).
Investment Limits
The Board has prescribed the following limits on the investment
policy of the Company:
• no more than 20% of the gross assets of the Company may
be invested in fixed interest securities;
• no more than 10% of the gross assets of the Company may
be held in a single investment;
• no more than 10% of the gross assets of the Company may
be held in other listed investment companies (excluding
REITs); and
• borrowings may be used to raise equity exposure up to
a maximum of 20% of the net assets of the Company, when
it is considered appropriate.
Key Performance Indicators
The Board reviews the performance of the Company by reference
to a number of key performance indicators, which include the
following:
• Investment performance
• Discount/premium
• Ongoing charges
Investment Performance
To assess investment performance the Board monitors the net
asset value (‘NAV’) performance of the Company relative to that
of the benchmark index it considers to be appropriate. However,
given the requirements and constraints of the investment
objective and policy followed, no index can be expected to fully
represent the performance that might reasonably be expected
from the Company.
The NAV total return performance over one, three and five year
periods to 31 May 2025 and of the relevant benchmark index
was as follows:
One Three Five
Year Years Years
NAV total return per share 11.9% 48.6% 120.8%
MSCI World Index (£)
total return 7.4% 35.5% 77.9%
Source: LSEG Data & Analytics. The Board also monitors the Company’s NAV total
return performance relative to its investment companies peer group and relevant
open-ended funds.
STRATEGY – BUSINESS REVIEW
INVESCO GLOBAL EQUITY INCOME TRUST PLC 25
Further details on the definition and calculation of total returns
can be found in the Glossary and Alternative Performance
Measures on pages 79 to 81.
Discount/Premium
The Board recognises the need to address any sustained and
significant imbalance of buyers and sellers which might otherwise
lead to the Company’s shares trading at a material discount or
premium to the NAV per share. The Board intends to utilise its
share buy-back and share issuance authorities, where appropriate,
in such a way as to mitigate the effects of any such imbalance.
In exercising the Company’s power to buy back shares, the Board
has complete discretion as to the timing, price and volume of
shares bought back. Shares will only be bought back at prices
that enhance the NAV of the remaining shares and may be held
in treasury or cancelled. The Board intends to use ad hoc share
buy-backs to seek to maintain a single digit discount in normal
market conditions.
The Board also has complete discretion as to the timing, price
and volume of shares issued pursuant to the Company’s issuance
authorities. Shares may only be issued or sold from treasury at a
price which, after costs, is not less than the net asset value per
share at the relevant time.
The Board reviews the buy-back and issuance parameters from
time to time taking into account current market conditions and
other factors and instructs the brokers accordingly.
The operation of the Company’s liquidity policy is dependent upon
the authorities to buy back and issue shares being renewed by
shareholders. Notwithstanding the intended effect of this policy,
there can be no guarantee that the Company’s shares will trade
at close to their respective NAV.
The Board and the Manager closely monitor movements in the
Company’s share price and dealings in the Company’s shares.
Share movements in the year are summarised on page 26. At
31 May 2025, the share price, net asset value (‘NAV’) and the
discount of the shares (known as Global Equity Income shares
prior to 2 December 2024) were as follows:
2025 2024
NAV Share NAV Share
per share price per share price
(Pence) (Pence) Premium
(1)
(Pence) (Pence) Discount
(1)
337.36 342.00 1.4% 313.30 286.00 (8.7)%
(1) Further details on the definition and calculation of the premium/(discount) can be found in the Glossary and Alternative Performance Measures on pages 79 to 81 of the
financial report.
The following chart shows the premium/(discount) at which the
ordinary shares traded over the two years to 31 May 2025. The
shares have generally traded in a range of a 17.8% discount to a
7.36% premium. As can be seen below, whilst the macro-economic
environment and ongoing geopolitical events and volatility in
markets led to higher levels of discount during the period up to
February 2025, the discount then narrowed considerably and
moved to a premium to NAV.
Source: LSEG Data & Analytics.
Ongoing Charges
The expenses of managing the Company are reviewed by the
Board at every meeting. The Board aims to minimise the ongoing
charges figure which provides a guide to the effect on
performance of all annual recurring operating costs of the
Company. The ongoing charges figure is calculated by dividing
the annualised ongoing charges, including those charged to
capital, by the average daily net asset value during the year,
expressed as a percentage.
Further details on the definition and calculation of ongoing charges
can be found in the Glossary and Alternative Performance
Measures on pages 79 to 81 of the financial report.
At the year end the ongoing charges figure of the Company was
as follows:
Company
2025 0.78%
2024 0.82%
In addition to inflationary effects, shrinkage from buybacks in
connection with the discount control policy will tend to cause the
ongoing charge percentages to gradually increase. However, as
noted above, the ongoing charges figure reduced at the 2025
financial year end as a result of a number of factors, including a
growth in assets and share issuances.
(Discount)/Premium %
–20
–18
–16
–14
–12
–10
-8
-6
-4
-2
0
2
4
6
8
May-25
Feb-25
Nov-24
Aug-24
May-24
Feb-24
Nov-23
Aug 23
May-23
Invesco Global Equity Income Trust plc
STRATEGY – BUSINESS REVIEW
26 INVESCO GLOBAL EQUITY INCOME TRUST PLC
Revenue and Dividends
The Directors review revenue estimates and prospective dividend
levels regularly. The Directors are able to sanction the use of the
Company’s capital reserves to supplement the underlying income
generated by the portfolio and therefore can pay dividends from
a combination of capital and revenue reserves. Details of
dividends paid during the year are set out below.
Revenue earnings per share for the Company was 5.01p (2024:
9.03p), based on net revenue for the year of £3,140,000 (2024:
£6,099,000), which included £282,000 (2024: £265,000) of
non-recurring special dividends. Net revenue for the year ended
31 May 2024 was derived from the four different portfolios that
existed prior to the Company’s restructuring in May 2024, some
of which were higher yielding than the Global Equities Income
Portfolio into which the other three portfolios were merged as
part of the restructuring.
Dividend Policy
Under the current dividend policy, which was adopted with effect
from the financial year commencing 1 June 2024, the Company
will pay an annual dividend of at least 4% calculated on the
unaudited prior year-end NAV, paid quarterly in equal amounts.
The intention is that these dividends will be paid from the
Company’s revenues and, if required, capital reserves.
The Board believes that the dividend policy should provide
shareholders with an attractive level of predictable income whilst
freedom for the investment Manager to select the best ideas
irrespective of their yield.
Dividends Declared
Four interim dividends were paid for the year ended 31 May 2025
totalling 12.52p (2024: 7.35p) per ordinary share, of which
5.01p (2024: 5.02p) was met from revenue earned in the year.
The aggregate of dividends paid in respect of the year was
£7,845,000 (2024: £1,864,000).
A first interim dividend for the year to 31 May 2026 of 3.375p
was declared on 10 July 2025. In the absence of unforeseen
circumstances, and in accordance with the dividend policy set out
above, the Board intends for this to set the level for the next
three quarterly dividends.
Financial Position
Assets and Liabilities
The Company’s balance sheet on page 59 shows the assets and
liabilities at the year end. Details of the Company’s borrowing
facility are shown in note 13 of the financial statements on
page 67, with interest paid (finance costs) in note 5.
Owing to the readily realisable nature of the Company’s assets,
cash flow does not have the same significance as for an industrial
or commercial company. The Company’s principal cash flows arise
from the purchases and sales of investments and the income from
investments against which must be set the costs of borrowing and
management and other expenses.
Borrowing Policy
Borrowing policy is under the control of the Board, which has
established effective parameters for the portfolio. Borrowing
levels are regularly reviewed. As part of the Company’s
investment policy, the approved borrowing limit is 20% of the
Company’s net assets.
Issued Share Capital
The Company’s former Global Equity Income shares were
redesignated as ordinary shares on 2 December 2024. The
ordinary shares have a nominal value of 1 pence per share.
Authorities given to the Directors at the AGM on 21 November
2024 to allot shares, disapply statutory pre-emption rights and
buy back shares will expire at the forthcoming AGM.
During the year the Company bought back into treasury
1,342,282 shares at an average price of 316.01p and for an
aggregate consideration of £4.27 million. These shares had a
nominal value of £13,423 and represented 2.13% of the issued
shares of the Company (excluding treasury shares) at the 1 June
2024.
During the year the Company sold 1,210,000 shares from
treasury at an average price of 340.70p and for an aggregate
consideration of £4.11 million. These shares had a nominal value
of £12,100 and represented 1.92% of the issued shares of the
Company (excluding treasury shares) at the 1 June 2024.
For the period since the year end, and up to 30 July 2025,
3,610,000 shares have been sold from treasury at an average
price of 364.97p and for an aggregate consideration of
£13.18 million.
Further details on net changes in issued share capital are set out
in note 14 to the financial statements on pages 67 and 68.
Current and Future Developments
As part of the Company’s overall strategy, the Company seeks to
manage its affairs so as to maximise returns for shareholders.
The key driver behind shareholder returns are investment
performance, the share price discount/premium and the
Company’s ongoing charges. The Board has a longer-term
objective to increase the size of the Company through a
combination of strong investment performance and further share
issuance. An increase in the size of the Company should lower
ongoing charges and make the Company’s shares attractive to a
broader range of potential investors, which should result in
improved liquidity in the Company’s shares.
Details of trends and factors likely to affect the future
development, performance and position of the Company’s
business can be found in the Chair’s Statement on pages 6 to 8
and the Portfolio Managers’ Report on pages 12 to 15. Further
details as to the risks affecting the Company are set out under
‘Principal Risks and Uncertainties’ below.
Principal Risks and Uncertainties
The Audit Committee regularly undertakes a robust assessment of
the risks the Company faces, including those that would threaten
its business model, future performance, solvency, reputation or
liquidity, and emerging risks, on behalf of the Board (see the Audit
Committee Report on pages 43 and 44). In carrying out this
assessment, the Audit Committee together with the Manager have
considered emerging risks such as recent geopolitical events,
evolving cyber threats (including risks associated with artificial
intelligence), wider shareholder activism impacting certain
investment companies and ESG, including climate-related risks.
The following are considered to be the most significant risks, after
consideration of mitigating factors, to the Company and to
shareholders in relation to their investment in the Company.
Further details of risks and risk management policies as they relate
to the financial assets and liabilities of the Company are detailed
in note 17 to the financial statements on pages 69 to 73.
STRATEGY – BUSINESS REVIEW
INVESCO GLOBAL EQUITY INCOME TRUST PLC 27
Category and principal Mitigating procedures Risk trend during
risk description and controls the year
Strategic Risk
► Unchanged
The Company has a diversified investment portfolio by
country, sector and stock. Due to its investment trust
structure, no forced sales need to take place and
investments can be held over a longer-term horizon.
However, there are few ways to mitigate absolute
market risk because it is engendered by factors which
are outside the control of the Board and the Manager.
These factors include the general health of the world
economy, interest rates, inflation, government
policies, industry conditions and changing investor
demand and sentiment. Such factors may give rise to
high levels of volatility in the prices of investments held
by the Company.
The performance of the Manager is carefully
monitored by the Board and the continuation of the
Manager’s appointment is reviewed each year. The
Board has established guidelines to ensure that the
investment objective and policy of the Company is
pursued by the Manager.
For a fuller discussion of the economic and market
conditions facing the Company and the current and
future performance of the Company, please see both
the Chair’s Statement on pages 6 to 8 and the
Portfolio Managers’ Report on pages 12 to 15.
Market Risk
The Company’s investments are mainly traded on
global stock markets including those in Asia,
Continental Europe, the US and the UK. The principal
risk for investors in the Company is a significant fall
and/or a prolonged period of decline in these global
markets. This could be triggered by unfavourable
developments in a single country or region or on
more global basis.
▲ IncreasedThe Manager evaluates and assesses political risk as part
of the stock selection and asset allocation policy which
is monitored at every Board meeting. This includes
political, military and diplomatic events and changes to
legislation. Balancing political risk and reward is an
essential part of the active management process.
The Company has a nil-valued holding in Sberbank, a
Russian bank, but no other direct investments in Russia
or other holdings with significant links to Russia.
Geopolitical Risk
Political risk has always been a feature of investing in
stock markets and it is particularly so when investing
on a global basis. Wider political developments in global
geographies, such as the war in Ukraine and conflict in
the Middle East, can create risks to the value of the
Company’s assets. Global markets encompass a variety
of political systems. There are many examples of
diplomatic skirmishes and military tensions and
sometimes these result in military engagement.
► Unchanged The Board receives regular reports reviewing the
Company’s investment performance against its stated
objective, benchmark, investment companies peer
group and relevant open-ended funds and reports from
discussions with its broker and major shareholders. The
Board also has a separate annual strategy meeting.
Investment Objectives and Strategy
The Company’s investment objective and strategy are
no longer meeting investors’ demands.
Decreased
▲
The Board receives regular reports from both the
Manager and the Company’s broker on the Company’s
share price performance, level of share price discount/
premium to NAV and recent trading activity in the
Company’s shares. As a result of the restructuring in
2024, the Board has introduced initiatives to help
address the Company’s share rating, including the
liquidity policy referred to in the ‘Discount/Premium’
section on page 25 and the dividend policy referred
to in the ‘Revenue and Dividends’ section on page 26.
It may seek to reduce any discount volatility and
absolute level of any share price discount to NAV
through buying back shares within stated shareholder
authorities. The Board also receives regular reports on
investor relation meetings with shareholders and
prospective investors and works to ensure that the
Company’s investment proposition is actively
marketed through relevant messaging across many
distribution channels.
Widening Discount
A lack of liquidity and/or lack of investor interest in the
Company’s shares leads to a depressed share price
and a widening discount to its NAV.
A persistently high discount may lead to buy-backs of
the Company’s shares and result in the shrinkage of
the Company.
STRATEGY – BUSINESS REVIEW
28 INVESCO GLOBAL EQUITY INCOME TRUST PLC
Category and principal Mitigating procedures Risk trend during
risk description and controls the year
Strategic Risk (continued)
Third Party Service Providers Risk
► Unchanged ESG considerations are integrated as part of the
investment decision-making in constructing the
portfolio. The Manager’s process around ESG is
described in the ESG Monitoring and Engagement
section on pages 21 to 23.
ESG (including climate risk)
Risks associated with climate change and ESG
considerations could affect the valuation of the
Company’s holdings.
► Unchanged
With the exception of borrowings in foreign currency,
the Company does not normally hedge its currency
positions but may do so should the Portfolio Managers
or the Board feel this to be appropriate. Contracts are
limited to currencies and amounts commensurate with
the asset exposure. The foreign currency exposure of
the Company is reviewed at Board meetings.
Currency Fluctuation Risk
Exposure to currency fluctuation risk negatively
impacts the Company’s NAV. The movement of
exchange rates may have an unfavourable or
favourable impact on returns as nearly all of the
Company’s assets are non-sterling denominated.
► Unchanged
The Audit Committee receives regular updates on the
Manager’s information and cyber security. This
includes updates on the cyber security framework,
staff resource and training, and the testing of its
security systems designed to protect against a cyber
security attack.
As well as conducting a regular review of TPPs’
audited service organisation control reports, the Audit
Committee monitors TPPs’ business continuity plans
and testing including the TPPs’ and Manager’s regular
‘live’ testing of workplace recovery arrangements
should a cyber event occur.
Information Technology Resilience and
Security
The Company’s operational structure means that all
cyber risk (information and physical security) arises at
its third-party service providers (‘TPPs’). This cyber
risk includes fraud, sabotage or crime perpetrated
against the Company or any of its TPPs.
Decreased
▲
The Board regularly compares the Company’s NAV
total return performance over both the short and long
term to that of the benchmark, investment companies
peer group and relevant open-ended funds as well as
reviewing the portfolio’s performance against
benchmark (attribution) and risk-adjusted performance
of the Company and its peers.
Performance
Risk that the Portfolio Managers consistently
underperform the benchmark and/or peer group over
3-5 years.
► Unchanged
The Manager’s business continuity plans are reviewed
on an ongoing basis and the Directors are satisfied
that the Manager has in place robust plans and
infrastructure to minimise the impact on its operations
so that the Company can continue to trade, meet
regulatory obligations, report and meet shareholder
requirements.
The Manager has arrangements and prioritises
between work deemed necessary to be carried out on
business premises and work from home arrangements
should it be necessary. Meetings are held in person,
virtually or via conference calls. Other similar working
arrangements are in place for the Company’s TPPs.
The Audit Committee receives regular update reports
from the Manager and TPPs on business continuity
processes.
Operational Resilience
The Company’s operational capability relies upon the
ability of its TPPs to continue working throughout the
disruption caused by a major event such as the
Covid-19 pandemic.
STRATEGY – BUSINESS REVIEW
INVESCO GLOBAL EQUITY INCOME TRUST PLC 29
Category and principal Mitigating procedures Risk trend during
risk description and controls the year
Regulatory Risk
Continuation Vote
The Board will put forward a vote at the Company’s Annual
General Meeting in 2026 for the continuation of the Company
(the 2026 Continuation Vote). If the 2026 Continuation Vote is
passed the Board will put forward a continuation vote at the
Company’s annual general meeting in 2031 and, if passed, at
each fifth annual general meeting thereafter.
Viability Statement
The Company is an investment company which operates as a
collective investment vehicle, designed and managed for
long-term investment. The Board considers long-term for this
purpose to be at least three years and so has assessed the
Company’s viability over this period. However, the life of the
Company is not intended to be limited to that or any other period.
In assessing the viability of the Company the Board considered
the principal and emerging risks to which it is exposed, as set out
on pages 27 to 29, together with mitigating factors. The risk of
failure to meet the Company’s investment objective, contributory
market and investment risks and the challenges of lack of scale
were considered to be of particular importance. The Board also
took into account the capabilities of the Manager and the varying
market conditions already experienced by the Company since its
launch in 2006, including the potential impact of the Covid-19
pandemic on global economies and the war in Ukraine. Despite
the disruption to markets from these and other more recent
geopolitical and macro-economic events such as the ongoing
conflict in the Middle East and the potential impact on global
economies of the imposition of increased tariffs on international
trade, the Directors remain confident that the Company’s
investment strategy will continue to serve shareholders well over
the longer term.
In terms of financial risks to viability, materially all of the
investments are readily realisable. The portfolio also produces a
stream of dividend income, which may fluctuate but which the
Board expects to continue. The Company has no long-term
liabilities and the total value of the portfolio more than covers the
value of the Company’s short-term liabilities and annual operating
costs. In arriving at this assessment, the Board considered
stressed scenario-testing for both income and loan covenants;
borrowing structure; level of gearing; and the liquidity of the
portfolio. Consequently, there appears little to no prospect of the
Company not being able to meet its financial obligations as they
fall due in the next three years.
Based on the above, the Board has a reasonable expectation that,
notwithstanding the continuation vote in 2026, the Company will
be able to continue in operation and meet its liabilities as they fall
due over the three-year period of its assessment.
Audit Committee Report
The Audit Committee Report required by the AIC Corporate
Governance Code is set out on pages 43 and 44. There are no
areas of concern in relation to the financial statements to bring
to the attention of shareholders.
Duty to Promote the Success of the
Company (s.172)
The Directors have a statutory duty under section 172 of the
Companies Act 2006 to promote the success of the Company
whilst also having regard to certain broader matters, including
the need to engage with employees, suppliers, customers and
others, and to have regard to their interests. The Company has
no employees and no customers in the traditional sense and, in
accordance with the Company’s nature as an investment trust,
the Board’s principal concern has been, and continues to be, the
interests of the Company’s shareholders taken as a whole.
In doing so, it has due regard to the desirability of the Company
maintaining a reputation for high standards of business conduct,
the need to foster the Company’s business relationships and the
impact of its actions on other stakeholders including the Manager
and other third-party service providers and the impact of the
Company’s operations on the community and the environment,
all which are all taken into account, to the extent relevant, during
all discussions and as part of the Board’s decision making.
The Board is committed to maintaining open channels of
communication and engagement with stakeholders in a manner
which they find most meaningful. The table below sets out how
the Board engages with each of its key stakeholders:
► Unchanged
The Manager reviews the level of compliance with the
Corporation Tax Act 2010 and other financial and
regulatory requirements on a daily basis. All
transactions, income and expenditure are reported to
the Board. The Board ensures that satisfactory
assurances are received from service providers. The
depositary and the Manager’s compliance and internal
audit officers report regularly to the Company’s Audit
Committee.
Regulatory and Tax-Related
The Company is subject to various laws and
regulations by virtue of its status as a public limited
investment company registered under the Companies
Act 2006, its status as an investment trust and its
listing on the London Stock Exchange. Loss of
investment trust status could lead to the Company
being subject to UK capital gains tax on the sale of its
investments. A serious breach of other regulatory
rules could lead to suspension from the London Stock
Exchange, a fine or a qualified Audit Report. Other
control failures, either by the Manager or any other of
the Company’s service providers, could result in
operational or reputational problems, erroneous
disclosures or loss of assets through fraud, as well as
breaches of regulations.
STRATEGY – BUSINESS REVIEW
30 INVESCO GLOBAL EQUITY INCOME TRUST PLC
Stakeholder Key considerations and engagement
To help the Board in its aim to act fairly as between the Company’s members,
shareholder relations are given high priority by the Board and the Manager. The prime
means by which the Company communicates with shareholders are the annual and
half-yearly financial reports, which aim to provide shareholders with a full
understanding of the Company’s activities and its results. This information is
supplemented by daily publication of the NAV of the Company’s shares via the London
Stock Exchange, ad hoc regulatory announcements, the monthly factsheet and other
information on the Manager’s website, www.invesco.com/uk/en/investment-
trusts/invesco-global-equity-income-trust.html, including pre-investment information,
Key Information Document (‘KID’), shareholder circulars, portfolio disclosures, Stock
Exchange announcements, schedule of matters reserved for the Board, terms of
reference of Board Committees, Directors’ letters of appointment, the Company’s share
price and proxy voting results.
The Chair and other Directors welcome contact with shareholders. There is a regular
dialogue between the Manager and individual major shareholders to discuss aspects
of investment performance, governance and strategy and to listen to shareholder
views in order to help develop a balanced understanding of their issues and concerns.
The Company’s corporate broker, Cavendish Capital Markets Limited, is also consulted.
General presentations to institutional shareholders and analysts take place throughout
the year. All meetings between the Manager and institutional shareholders are
reported to the Board.
It is the intention of the Board that the Annual Financial Report and the notice of the
AGM be issued to shareholders so as to provide at least twenty working days’ notice
of the AGM. Shareholders wishing to lodge questions in advance of the AGM are invited
to do so in writing to the Company Secretary at the address given on page 78.
Shareholders – continued
shareholder support and engagement
are important to the Company and the
delivery of its long-term strategy.
Further details of our strategy can be
found on page 24.
The Board engages with the Manager at every Board meeting and reviews the
Company’s relationships with other service providers, such as the broker, registrar,
depositary and custodian, at least annually. During the year the most significant
engagement was with the Manager, including the Portfolio Managers. At every Board
meeting the Directors receive an investor relations update from the Manager, which
details any significant changes in the Company’s shareholder register and shareholder
feedback, as well as notifications of any publications or press articles.
Maintaining a close and constructive working relationship with the Manager is crucial
as the Board and the Manager both aim to achieve consistent, long-term returns in
line with the Company’s investment strategy. Important components in the
collaboration with the Manager, representative of the Company’s culture, are:
– encouraging an open discussion with the Manager, allowing time and space for
original and innovative thinking;
– recognising that the interests of shareholders and the Manager are, for the most
part, well aligned, adopting a tone of constructive challenge, balanced with robust
negotiation of the Manager’s terms of engagement if those interests should not be
fully united;
– the regular review of underlying strategic and investment objectives;
– drawing on Directors’ individual experience and knowledge to support and challenge
the Manager in its monitoring of and engagement with its investee companies; and
– willingness to make the Directors’ experience available to support and challenge
the Manager in the sound long-term development of its business and resources,
recognising that the long-term health of the Manager’s business is in the interests
of shareholders in the Company.
The Manager – the Manager’s
performance is critical for the Company
to successfully deliver its investment
strategy and meet its objective to
provide shareholders with consistent
long-term returns. Further details of
the Portfolio Managers’ investment
approach can be found in the Portfolio
Managers’ Report on pages 12 to 15
and the summary of the Investment
Team and Process on page 16.
STRATEGY – BUSINESS REVIEW
INVESCO GLOBAL EQUITY INCOME TRUST PLC 31
Stakeholder Key considerations and engagement
The mechanisms for engaging with stakeholders are kept under
review by the Directors are discussed on a regular basis at Board
meetings to ensure that they remain effective. Examples of key
discussions and considerations of the Board made during the year
were:
• to consider and approve the renewal of the Company’s loan
facility;
• to consider and approve four quarterly dividend payments
(see page 26 for further details);
• to consider and approve the ongoing use of share buy-backs
and issuances as part of the Board’s adopted liquidity policy
(see the Discount/Premium section page 25 for further
details);
• to approve an increased marketing budget, the additional
cost of which is expected to be more than offset by attracting
new demand for the Company’s shares and the resulting
issue of new shares; and
• to consider and approve the appointment of Sue Inglis and
Helen Galbraith as Directors of the Company.
Board Diversity
The Company’s policy on diversity is set out on page 38, under
the section ‘Nomination Committee’. The Board considers
diversity, including the balance of skills, knowledge, experience
and gender amongst other factors, when reviewing its
composition and appointing new Directors. The Board continues
to recognise the importance of having a range of skilled,
experienced individuals with the right knowledge represented on
the Board in order to allow it to fulfil its obligations.
In view of its relatively small size, the Board will continue to
ensure that all appointments are made on the basis of merit
against the specification prepared for each appointment. In doing
so, the Board will seek to meet the targets set out in the FCA’s
UK Listing Rule 6.6.6R (9)(a), which are summarised below.
In accordance with UK Listing Rule (‘UKLR’) 6.6.6R (9), (10) and
(11) the Board has provided the following information in relation
to its diversity as at 31 May 2025, being the financial year end
of the Company. The information included in the tables below has
been obtained following confirmation from the individual
Directors. As shown in the tables, the Company did not meet the
FCA ethnic diversity target as at 31 May 2025. Given its small
size, which it considers appropriate, and the relative infrequency
with which appointments are made, the Board is aware that
achieving this target is more challenging. It will be mindful of this
target when making any future appointments and will continue
to take all matters of diversity into account as part of its
succession planning.
The Board, principally through the Manager, maintains regular contact with its key
external service providers and receives regular reporting from them, both through the
Board and Committee meetings, as well as outside of the regular meeting cycle. Their
advice, as well as their needs and views, are routinely taken into account.
The Board (through the Management Engagement Committee) formally assesses the
third-party service providers’ performance, fees and continuing appointment annually
to ensure that the key service providers continue to function at an acceptable level
and are appropriately remunerated to deliver the expected level of service.
The Audit Committee reviews and evaluates the financial reporting control
environments in place at each service provider. There have been no material changes
to the level of service provided by the Company’s third-party suppliers during the
financial year.
Third-party Service Providers – in
order to function as an investment
trust with a listing on the London Stock
Exchange, the Company relies on a
diverse range of reputable service
providers for support in meeting all
relevant obligations.
On the Company’s behalf the Portfolio Managers engage with investee companies,
particularly in relation to ESG matters, and shares held in the portfolio are voted at
general meetings.
Investee Companies – the Board
recognises the importance of good
stewardship and communication with
investee companies in meeting the
Company’s investment objective and
strategy.
The Company regularly considers how it meets various regulatory and statutory
obligations and how any governance decisions it makes can have an impact on its
stakeholders, both in the shorter and in the longer term. The Board receives reports
from the Manager and Auditor on their respective regulatory compliance and any
inspections or reviews that are commissioned by regulatory bodies.
The Company is a member of the AIC, which looks after the interests of investment
companies and provides information to investment company boards and the market.
Comprehensive information relating to the Company can be found on the AIC website,
www.theaic.co.uk.
As a member of the AIC, the Company is welcomed to comment on consultations and
proposal documents on matters affecting the Company and annually to nominate and
vote for future board members.
Regulators – the Company can only
operate as an investment trust if it
conducts its affairs in compliance with
such status. Interaction with regulators
such as the Financial Conduct Authority
(‘FCA’) and Financial Reporting Council
(‘FRC’), who have a legitimate interest in
how the Company operates in the
market and treats its shareholders, and
industry bodies such as the Association
of Investment Companies remains an
area of Board focus.
STRATEGY – BUSINESS REVIEW
32 INVESCO GLOBAL EQUITY INCOME TRUST PLC
Board Gender as at 31 May 2025
Number of Number in Percentage of
Number of Percentage senior positions executive executive
Board members of the Board on the Board management
(1)
management
(1)
Men 3 60% 1
(3)
n/a n/a
Women 2 40%
2
1
(3)(4)
n/a n/a
(1) The Company does not disclose the number of directors in executive management as this is not applicable for an investment trust.
(2) Meets the target of 40% as set out in UKLR 6.6.6R (9)(a)(i).
(3) The position of Chair is held by a woman. The position of Senior Independent Director is held by a man. The position of Chair of the Audit Committee is held by a man
but this is not currently defined as a senior position.
(4) Meets the target of 1 as set out in UKLR 6.6.6R (9)(a)(ii).
Number of Number in Percentage of
Number of Percentage of senior positions executive executive
Board members the Board on the Board management
(1)
management
(1)
White British or other White
(including minority-white groups) 5 100% 2 n/a n/a
Minority ethnic 0
(2)
0% 0 n/a n/a
(1) The Company does not disclose the number of directors in executive management as this is not applicable for an investment trust.
(2) Does not meet the target as set out in UKLR 6.6.6R (9)(a)(iii).
There have been no changes since the year end that have affected the Company’s ability to meet the targets set in UK LR 6.6.6R (9)(a).
Environment, Social and Governance
(‘ESG’) Matters
In relation to the portfolio, the Company has delegated the
management of the Company’s investments to the Manager, who
has an ESG Guiding Framework which sets out a number of
principles that are considered in the context of its responsibility
to manage investments in the financial interests of shareholders.
The Manager is committed to being a responsible investor and
applies, and is a signatory to, the United Nations Principles for
Responsible Investment (‘PRI’), which demonstrates its extensive
efforts in terms of ESG integration, active ownership, investor
collaboration and transparency. The Manager scored four stars
for its Investment & Stewardship Policy under new scoring
methodology produced by PRI. This followed five consecutive
years of achieving an A+ rating for responsible investment
(Strategy & Governance) under the previous methodology. In
addition, the Manager is an active member of the UK Sustainable
Investment and Finance Association as well as a supporter of the
Task Force for Climate Related Financial Disclosure (‘TCFD’) since
2019 and published its fourth iteration of its TCFD-aligned
Climate Change Report in 2023.
The Manager is complying with the spirit of the Sustainable
Finance Disclosure Regulation (‘SFDR’) which came into effect
within the European Union on 10 March 2021 and is disclosing
in its AIFM document as well as its website how sustainability risks
are integrated.
The wider Invesco investment team incorporates ESG
considerations in its investment process as part of the evaluation
of new opportunities, with identified ESG concerns feeding into
the final investment decision and assessment of relative value.
The Portfolio Managers make their own conclusions about the
ESG characteristics of each investment held and about the overall
ESG characteristics of the portfolio, although third party ESG
ratings may inform their view. Additionally, the Manager’s ESG
team provides formalised ESG portfolio monitoring. This is a
rigorous semi-annual process where the portfolio is reviewed from
an ESG perspective.
Regarding stewardship, the Board considers that the Company
has a responsibility as a shareholder towards ensuring that high
standards of corporate governance are maintained in the
companies in which it invests. To achieve this, neither the Board
or the Manager seek to intervene in daily management decisions,
but both aim to support high standards of governance and, where
necessary, will take the initiative to ensure those standards are
met. The principal means of putting shareholder responsibility
into practice is through the exercise of voting rights. The
Company’s voting rights are exercised on an informed and
independent basis.
Further details are shown in the ESG Statement from the Manager
on pages 21 to 23.
The Company’s stewardship functions have been delegated to the
Manager. The Manager has adopted a clear and considered policy
towards its responsibility as a shareholder on behalf of the
Company. As part of this policy, the Manager takes steps to
satisfy itself about the extent to which the companies in which it
invests look after shareholders’ value and comply with local
recommendations and practices, such as the UK Corporate
Governance Code. The Manager is also a Tier 1 signatory of the
Financial Reporting Council’s Stewardship Code, which seeks to
improve the quality of engagement between institutional investors
and companies to help improve long-term returns to shareholders
and the efficient exercise of governance responsibilities.
A copy of the Manager’s Stewardship Policy can be found at
www.invesco.com/uk.
A greenhouse gas emissions statement is included in the
Directors’ Report on page 40.
Whilst TCFD is currently not applicable to the Company, the
Manager has produced a product level report on the Company in
accordance with the Financial Conduct Authority’s (‘FCA’) rules
and guidance regarding the disclosure of climate-related financial
information consistent with TCFD Recommendations and
Recommended Disclosures. These disclosures are intended to
help meet the information needs of market participants, including
institutional clients and consumers of financial products,
in relation to the climate-related impact and risks of the Manager’s
TCFD in-scope business. The product level report on the
Company is available on the Manager’s website at
www.invesco.com/uk/en/investment-trusts/invesco-global-equity-
income-trust.html.
STRATEGY – BUSINESS REVIEW
INVESCO GLOBAL EQUITY INCOME TRUST PLC 33
Key elements of the product level report include a scenario
analysis of how climate change is likely to impact the portfolio
valuation under net zero 2050, delayed transition and hothouse
scenarios, and a discussion of the most significant drivers of
performance under those scenarios.
Invesco’s Group Level Task Force on Climate-Related Financial
Disclosures (‘TCFD’) is available on the Manager’s website at
www.invesco.com/content/dam/invesco/emea/en/pdf/ivz_global-
tcfd-report.pdf.
Modern Slavery
As an investment vehicle the Company does not provide goods
or services in the normal course of business, and does not have
customers. Accordingly, the Directors consider that the Company
is not within the scope of the Modern Slavery Act 2015.
This Strategic Report was approved by the Board on 1 August
2025.
James Poole
Senior Company Secretary
Invesco Asset Management Limited
Corporate Company Secretary
IGET An experienced and independent Board
responsible for effective governance
Governance
Directors ..............................................................................35
Directors’ Report ..................................................................36
The Company’s Corporate Governance Framework ................41
Corporate Governance Statement .........................................42
Audit Committee Report .......................................................43
Directors’ Remuneration Report ............................................45
Statement of Directors’ Responsibilities .................................48
34 INVESCO GLOBAL EQUITY INCOME TRUST PLC
INVESCO GLOBAL EQUITY INCOME TRUST PLC 35
GOVERNANCE – DIRECTORS’ REPORT
Directors
Sue Inglis
Chair of the Board and the Nomination Committee
Sue Inglis was appointed as a Director on 10 October 2024 and Chair of the Board and Nomination Committee
on 21 November 2024. Sue has a wealth of experience from more than 30 years advising listed investment
companies and financial institutions. Before embarking on a non-executive career, her executive roles included
managing director - Corporate Finance in the Investment Companies teams at Cantor Fitzgerald Europe
(2012-2018) and Canaccord Genuity (2009-2012). Sue is a qualified lawyer, and was a partner and head of
the funds and financial services group at Shepherd & Wedderburn, a leading Scottish law firm. In 1999 she
was a founding partner of Intelli Corporate Finance, an advisory boutique firm focusing on the asset
management and investment company sectors, which was acquired by Canaccord Genuity in 2009. Sue is
currently the senior independent director of Baillie Gifford US Growth Trust plc, CT Global Managed Portfolio
Trust plc (where she also chairs the audit committee) and Seraphim Space Investment Trust plc.
Craig Cleland
Chair of the Audit Committee
Mr Cleland was appointed as a Director with effect from 1 November 2016 and became Chair of the Audit
Committee on 31 July 2017. He is Head of Corporate Development: Investment Trusts, at CQS (UK) LLP (on a
part-time basis). He is also a non-executive director of BlackRock Latin American Investment Trust plc and CC
Japan Income and Growth Trust plc. He was previously at JPMorgan Asset Management (UK) Limited, latterly
as Managing Director, and led their technical groups in the investment trust business. Prior to that he was a
Director and senior company secretary at Fleming Investment Trust Management, transferring to JPMorgan
Asset Management after Chase Manhattan Bank acquired Robert Fleming Holdings Limited.
Mark Dampier
Chair of the Marketing Committee
Mr Dampier was appointed to the Board on 23 April 2021 and joined from Invesco Income Growth Trust plc,
of which he had been a director since 1 March 2016. He was, until August 2020, Head of Investment Research
at Hargreaves Lansdown, a position he had held since 1998. He has over 30 years’ experience in the fund
management industry, including marketing investment trusts and unit trusts, has published a book on effective
investing and is a leading commentator on the investment sector.
Tim Woodhead
Senior Independent Director and Chair of the Management Engagement Committee
Mr Woodhead was appointed to the Board on 23 April 2021 and joined from Invesco Income Growth Trust plc, of
which he had been a director since 3 April 2018. He is a senior Investment Director at Rathbone Brothers plc.
Mr Woodhead holds various trustee positions in charities and for a number of family trusts. He previously held
the role of lead fund manager of Albany Investment Trust plc and was a member of the Stock Selection
Committee at Rathbone Brothers plc. He was a Trustee and then Chairman of Rathbone 1987 Pension Scheme,
standing down in June 2018. Mr Woodhead has over 20 years of investment experience managing private client
investments and is an active investor with a keen interest in UK midcap and investment trusts
Helen Galbraith
Non-executive Director
Helen Galbraith was appointed to the Board on 1 December 2024. Helen is currently Audit Chair of CT UK
High Income Trust PLC and Schroder UK Mid Cap Fund plc and Chair of Orwell Housing Association. She was
formerly Head of Investor Relations at Aviva plc, Head of Global Equities at Aviva Investors and Investment
Director, UK Equities at Standard Life Investments and has over 20 years’ experience in the insurance and
asset management industry. She is a Chartered Financial Analyst and a passionate advocate of financial
education for children having established an online platform and worked with charity Money Ready.
All Directors are, in the opinion of the Board, independent of the management company.
All Directors are non-executive.
36 INVESCO GLOBAL EQUITY INCOME TRUST PLC
GOVERNANCE – DIRECTORS’ REPORT
Introduction
The Directors present their report for the year ended 31 May 2025.
Business and Status
The Company was incorporated and registered in England and
Wales on 25 August 2006 as a public limited company, registered
number 05916642. It is an investment company as defined by
section 833 of the Companies Act 2006 and operates as an
investment trust within the meaning of the Corporation Tax
Act 2010 and the Investment Trusts (Approved Company) (Tax)
Regulations 2011. HM Revenue & Customs has approved the
Company’s status as an investment trust and, in the opinion of
the Directors, the Company has conducted its affairs so as to
enable it to maintain such approval.
The Board
At the year end, the Company had a Board of five non-executive
Directors who oversee and monitor the activities of the Manager
and other service providers on behalf of shareholders and ensure
that the investment policy is adhered to. Victoria Muir and Davina
Curling retired as Directors of the Company at the conclusion of
the AGM on 21 November 2024. Sue Inglis and Helen Galbraith
were appointed as Directors of the Company on 10 October 2024
and 1 December 2024 respectively.
As disclosed in the Chair’s Statement, Craig Cleland will retire
from the Board at the conclusion of the 2025 AGM. Helen
Galbraith will then succeed Craig as Chair of the Audit Committee.
Details of the Board’s responsibilities, the information it relies
upon and the number of meetings it holds follow. Certain aspects
of the Company’s affairs are dealt with by the Directors sitting as
Committees of the Board, descriptions of which also follow.
The Board has resolved that a remuneration committee is not
appropriate for a company of this nature with a Board of this size.
Remuneration is therefore regarded as part of the Board’s
responsibilities. For information on the Directors’ remuneration
please refer to the Directors’ Remuneration Report on
pages 45 to 47.
The Board considers that all of the Directors are wholly
independent of the Company’s Manager. The Directors have a
range of business, financial and asset management skills as well
as experience relevant to the direction and control of the
Company. Brief biographical details of the members of the Board
are shown on page 35.
Chair
The Chair of the Board is Sue Inglis, an independent
non-executive director who has no conflicting relationships.
Sue Inglis succeeded Victoria Muir as Chair of the Company
following the conclusion of the AGM on 21 November 2024. The
Chair is responsible for the leadership of the Board and ensuring
its effectiveness.
Senior Independent Director and Chief Executive
Officer
The Senior Independent Director is Tim Woodhead who
succeeded Davina Curling following her retirement as a director
at the conclusion of the AGM on 21 November 2024. The Senior
Independent Director is available to shareholders if they have
concerns which contact through the normal channels of Chair,
Manager or Company Secretary have failed to resolve or for which
such contact may be inappropriate. Since all Directors are
non-executive and day-to-day management responsibilities are
subcontracted to the Manager, the Company does not have a
Chief Executive Officer.
Board Responsibilities
The Directors have a duty to promote the success of the Company
taking into consideration: the likely consequences of any decision
in the long term; the need to foster the Company’s business
relationships with its Manager; the impact of the Company’s
operations on the community and the environment; the desire for
the Company to maintain a reputation for high standards of
business conduct; and the need to act fairly between shareholders
of the Company.
The Board directs the Company in accordance with these duties
and ensures that it operates within a framework of effective
controls which enable risk to be assessed and managed. A formal
schedule of matters reserved for the Board has been established.
The schedule of matters is reviewed annually to ensure
compliance with latest best practice and the AIC Code and is
available for inspection at the registered office of the Company,
its correspondence address and on the Manager’s website
www.invesco.com/uk/en/investment-trusts/invesco-global-equity-
income-trust.html.
The main responsibilities of the Board include: setting policies and
standards; ensuring that the Company’s obligations to shareholders
and others are understood and complied with; approving
accounting and dividend policies; managing the capital structure;
setting long-term objectives and strategy; assessing risk; reviewing
investment performance; approving loans and borrowing;
approving recommendations presented by the Company’s
respective Board Committees; controlling risks; and the ongoing
assessment of the Manager. The Board also seeks to ensure that
shareholders are provided with sufficient information in order to
understand the risk/reward balance to which they are exposed by
holding their shares through the information given in the annual
and half-yearly financial reports and regulatory information service
announcements, including daily NAV disclosures.
The Board is committed to the prevention of corruption in the
conduct of the Company’s affairs. Taking account of the nature
of the Company’s business and operations, the Board has put in
place procedures, including the regular review of reports from the
Manager’s compliance and internal audit functions, that it
considers adequate to prevent persons associated with it from
engaging in bribery for and on behalf of the Company. These
processes ensure that the Company maintains adequate
safeguards in keeping with the provisions of the Bribery Act 2010
and Criminal Finances Act 2017. The Board has a zero tolerance
approach towards the facilitation of tax evasion.
As stated above, the Board as a whole periodically undertakes
the responsibilities which would otherwise be assumed by a
remuneration committee.
Supply of Information
To enable the members of the Board to fulfil their roles, the
Manager and Company Secretary ensure that Directors have
Directors’ Report
INVESCO GLOBAL EQUITY INCOME TRUST PLC 37
GOVERNANCE – DIRECTORS’ REPORT
timely access to all relevant management, financial and
regulatory information. The Board meets on a regular basis at
least five times each year and additional meetings are
arranged as necessary. Regular contact is maintained
between the Manager, Company Secretary and the Board outside
formal meetings.
Board meetings follow a formal agenda, which includes a review
of: the portfolio with a report from the Portfolio Managers on
investment transactions; the current investment position and
outlook; strategic direction; performance against relevant indices,
investment companies peer group and relevant open-ended
funds; asset allocation; gearing policy; cash management;
revenue forecasts for the financial year; marketing and
shareholder relations; corporate governance; and industry and
other issues.
On being appointed to the Board, Directors are fully briefed as to
their responsibilities and are continually updated throughout their
term in office on industry and regulatory matters. The Company
Secretary and the Board have formulated a programme of
induction training for newly appointed Directors. The Directors
take responsibility for their own training needs while in office, but
also receive briefings from key members of the Manager’s staff
in order that Directors can keep up to date with new legislation
and changing risks.
Committees of the Board
The Board has delegated certain of its responsibilities to
Nomination, Management Engagement, Audit and
Marketing Committees. As the Company is considered small for
the purposes of the AIC Code, all Directors are members of the
Nomination and Management Engagement Committees. Each
committee has written terms of reference which clearly define its
responsibilities and duties, are in line with best practice and the
AIC Code, and are reviewed annually. The terms of reference for
each committee are available on the Manager’s website,
at www.invesco.com/uk/en/investment-trusts/invesco-global-
equity-income-trust.html, and on request from the Company
Secretary using the contact details on page 78. In addition, the
Board has appointed a standing Committee of at least one
Director to approve the quarterly dividend declarations and may
appoint additional Committees on an ad hoc basis to deal with
other matters.
Board, Committee and Directors’
PerformanceAppraisals
The Directors recognise the importance of the AIC Code,
particularly in terms of evaluating the performance of the Board
as a whole, the respective Committees and individual Directors.
Performance of the Board, Committees and Directors has been
assessed during the year, amongst other things, in terms of:
• attendance at Board and Committee meetings;
• the independence of individual Directors;
• the ability of Directors to make an effective contribution to the
Board and Committees due to the diversity of skills and
experience each Director brings to the meetings; and
• the Board’s ability to challenge the Manager and debate the
future strategy of the Company.
Mr Woodhead was responsible for the performance evaluation
of the Chair, taking into account the views of the other Directors.
The Board conducted its performance evaluation through an
internal process via the use of questionnaires and discussion
between the Directors and the Chair. The review concluded that
the Board and its Committees collectively, and the Directors
individually, continue to be effective and that the Directors
demonstrate commitment to the role.
Attendance at Board and Committee Meetings
The number of scheduled meetings held during the year to
31 May 2025 and the attendance of individual Directors are
shown in the table below:
Management
Audit Nomination Engagement Marketing
Board Committee Committee Committee Committee
Scheduled meetings
(1)
Sue Inglis
(2)
3 2 0 1 1
Craig Cleland 5 3 1 1 1
Mark Dampier 5 3 1 1 1
Tim Woodhead 5 3 1 1 1
Helen Galbraith
(3)
2 3 0 1 1
Victoria Muir
(4)(6)
2 1 1 0 0
Davina Curling
(5)
2 1 1 0 0
(1) Additional ad-hoc meetings of the Board and standing Committees of the Board were held to deal with time sensitive matters including dividend
declarations and Director recruitment.
(2) Appointed to the Board on 10 October 2024.
(3) Appointed to the Board on 1 December 2024.
(4) Retired from the Board on 21 November 2024.
(5) Retired from the Board on 21 November 2024.
(6) Attended Audit Committee meetings by invitation.
Appointment, Re-election and Tenure of Directors
New Directors are appointed by the Board, following
recommendation by the Nomination Committee. Provided the
timing of initial appointment is such that a resolution can be
included in the Notice of the Meeting, new Directors are then
subject to election by shareholders at the first Annual General
Meeting (AGM) following their appointment, failing which election
by shareholders will be deferred to the following AGM.
No Director has a contract of employment with the Company.
Directors’ terms and conditions of appointment are set out
in letters of appointment, copies of which are on the
Manager’s website www.invesco.com/uk/en/investment-
trusts/invesco-global-equity-income-trust.html.
The tenure of the Chair shall normally be limited to nine years as
Chair and up to 12 years including any time served as a Director
before becoming Chair, since the Board considers that the
continuity and accumulated experience and knowledge of the
Chair is of considerable value to the Company. All other Directors
shall normally have tenure limited to nine years from first
appointment to the Board. However, in each case, there is
38 INVESCO GLOBAL EQUITY INCOME TRUST PLC
GOVERNANCE – DIRECTORS’ REPORT
flexibility for the Board to determine that this be extended where
it is considered that the continued participation on the Board of
an individual Director, or the Chair, is in the best interests of the
Company and its shareholders. This is also subject to the
Director’s re-election by shareholders. In accordance with the AIC
Code of Corporate Governance, subject to any Directors not
seeking to continue in office, all Directors will offer themselves
for re-election annually at the AGM. The Board considers that this
policy provides both for adequate continuity and encourages
regular refreshment, which is conducive to fostering diversity of
its constituents.
The Board is aware of the tenure of Mr Dampier on the Board,
who based on his original appointment date on the Invesco
Income & Growth Trust plc (‘IIGT’) board, reached the ninth
anniversary of his appointment to the Company’s board in
February 2025. This has been factored into the Company’s plans
to ensure the orderly succession of Board members and, as
disclosed in the Chair’s statement, Mr Dampier intends to retire
from the Board by the 2026 AGM.
The Board confirms that all of the Directors standing for
re-election at the 2025 AGM perform effectively and demonstrate
commitment to their roles and recommends that shareholders
vote in favour of their election and re-election.
Audit Committee and Audit Information
The composition and activities of the Audit Committee are
summarised in the Audit Committee Report on pages 43 and 44,
which is included in this Directors’ Report by reference. Similarly,
the Directors, representations required by the Companies
Act 2006 on audit information, which are included with other
representations in the Statement of Directors’ Responsibilities on
page 48, are also included in this Directors’ Report by reference.
Management Engagement Committee
(‘MEC’)
The MEC is chaired by Mr Woodhead. All Directors are members
of the MEC. The MEC meets at least once a year to review the
Investment Management Agreement and the performance and
quality of service provided by the Manager and other service
providers.
Marketing Committee
The Marketing Committee is chaired by Mr Dampier. All Directors
are members of the Committee. The Marketing Committee has
been established to oversee investor relations and efforts to
refresh and expand the Company’s shareholder base. The
Committee aims to meet at least twice each year. However, the
Marketing Committee only met once in the year ended 31 May
2025 as the marketing strategy was a principle topic discussed
at the Board’s strategy meeting held in March 2025.
Nomination Committee
The Nomination Committee is chaired by Ms Inglis. All Directors
are members of the Nomination Committee. The main
responsibilities of the Nomination Committee are to review the
size, structure, skills and diversity of the Board and to make
recommendations to the Board with regard to any changes
considered necessary or new appointments.
The Board’s policy on diversity is that the Board seeks to ensure
that its structure, size and composition, including the skills,
knowledge, diversity (including gender and ethnicity) and
experience of Directors, is sufficient for the effective direction and
control of the Company. This policy, which covers the Board and
its Committees, together with the tenure principles set out above
and on page 37 guide the Committee.
The Board has formulated a formal, rigorous and transparent
procedure for the selection and appointment of new Directors to
the Board. The Nomination Committee carries out the procedure
with a view to making recommendations to the Board. The
Nomination Committee may consider using an executive search
consultancy or open advertising when seeking new candidates for
appointment.
During the year, as part of ongoing succession planning, Fletcher
Jones, an independent external consultancy with no connection
to the Company, was engaged to assist with the search for
candidates in order to appoint two new Directors to succeed
Victoria Muir and Davina Curling. The search requirements
included a preference for a diverse range of candidates, including
those with a strong background in listed investment trusts, with
relevant accountancy, asset management and/or legal experience
and appropriate leadership qualities. Following this process, the
Nomination Committee recommended to the Board the
appointments of Sue Inglis and Helen Galbraith. After due
consideration Ms Inglis was appointed to the Board with effect
from 10 October 2024 and Mrs Galbraith with effect from
1 December 2024, being the strongest candidates with relevant
knowledge, qualifications and experience.
Directors
Conflicts of Interest
A Director must avoid a situation where she/he has, or can have,
a direct or indirect interest that conflicts, or has the potential to
conflict, with the Company’s interests.
The Articles of Association of the Company give the Directors
authority to authorise potential conflicts of interest and there are
safeguards that apply when Directors decide whether to do so.
First, only Directors who have no interest in the matter being
considered will be able to take the relevant decision and, second,
in taking the decision the Directors must act in a way they
consider, in good faith, is most likely to promote the Company’s
success. The Directors are able to impose limits or conditions
when giving authorisation if they think this is appropriate.
The Directors have declared any potential conflicts of interest to
the Company. These are entered into the Company’s Register of
Potential Conflicts, which is reviewed regularly by the Board. This
Register is kept at the registered office of the Company. The
Directors are obliged to advise the Company Secretary and/or
Chair as soon as they become aware of any potential conflicts of
interest. Directors will not participate in Board decisions on issues
where they may be conflicted.
Disclosable Interests
The Directors’ interests in the ordinary share capital of the
Company are disclosed in the Directors’ Remuneration Report on
page 46.
No Director was a party to, or had any interests in, any contract
or arrangement with the Company at any time during the year
or at the year end other than in respect of indemnification and
insurance as set out below.
Directors’ Indemnification and Insurance
The Company maintains a Directors’ and Officers’ liability
insurance policy.
A Deed of Indemnity has been executed by the Company under
the terms of which, to the extent permitted by law and the
Company’s Articles of Association, the Company will indemnify
the Directors against liabilities incurred in connection with their
office as Directors of the Company and fund reasonable
expenditure incurred by them in defending proceedings brought
against them in connection with their position as Directors of
the Company. The indemnity does not apply in certain
INVESCO GLOBAL EQUITY INCOME TRUST PLC 39
GOVERNANCE – DIRECTORS’ REPORT
circumstances, including to the extent that the costs are
recoverable under the Directors’ and Officers’ liability insurance
policy maintained by the Company or from any other insurance
maintained by the Directors.
Financial Instruments
The Company’s financial instruments comprise: its investment
portfolio; cash and loan balances; debtors and creditors which
arise directly from its operations such as sales and purchases
awaiting settlement; and accrued income. The financial risk
management objectives and policies arising from its financial
instruments and the exposure of the Company to risk are
disclosed in note 17 to the financial statements, beginning on
page 69.
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 12 months from
the signing of the financial statements for this purpose. This
conclusion is consistent with the longer-term viability statement
on page 29 and in reaching it the Directors took into account: the
value of net assets; the Company’s investment policy; its risk
management policies; the diversified portfolio of readily realisable
securities which can be used to meet funding commitments; the
credit facility and the overdraft which can be used for short-term
funding requirements; the liquidity of the investments which could
be used to repay the credit facility in the event that the facility
could not be renewed or replaced; ‘the Company’s’ revenue; the
uncertain macro-economic outlook; and ongoing geopolitical
events, including the war in Ukraine, conflict in the Middle East,
the impact on global economies of the potential imposition of
increased tariffs on international trade, and the ability of the
Company in the light of these factors to meet all of its liabilities
and ongoing expenses.
The Manager
Invesco Fund Managers Limited (‘IFML’ or the ‘Manager’) is the
Company’s alternative investment fund manager (‘AIFM’). It is
responsible for the management of the Company’s investment
portfolio and for providing administration and company secretarial
services to the Company.
Investment Management Agreement (‘IMA’)
The Manager’s services are provided under the terms of an IMA,
dated 22 July 2014 and subsequently amended, that can be
terminated by either party giving six months’ notice or, in certain
limited circumstances, without notice. As explained in the
Strategic Report on page 24 Invesco Asset Management Limited
(‘IAML’), a company related to IFML, provides many of the
services under the agreement on delegated authority from IFML.
References to the Manager should consequently be considered
to include both entities.
During the year the Manager was entitled to a basic fee (payable
quarterly) equal to 0.55% of the net assets of the Company up to
£100 million and 0.50% over £100 million. The IMA provides for
the basic fee to be reduced by any fee payable separately to the
Manager on any investments in other funds managed by the
Manager.
The Manager’s Responsibilities
The Manager is responsible for the day-to-day investment
management activities of the Company, seeking and evaluating
investment opportunities and analysing the results of investee
companies and funds. The Portfolio Managers have full discretion
to manage the assets in accordance with its stated investment
policy as determined from time to time by the Board and
approved by shareholders. The Portfolio Manager has discretion
to make purchases and sales, make and withdraw cash deposits
and exercise all rights over the investment portfolio. The Portfolio
Managers also have discretion to utilise borrowings, within limits
set by the Board.
The Manager is also responsible for the provision of company
secretarial and administration services to the Company, ensuring
that the Company complies with all legal, regulatory and
corporate governance requirements and attending on the
Directors at Board meetings and shareholders’ meetings. The
Manager additionally maintains records of the Company’s
investment transactions, portfolio and all monetary transactions,
from which the annual and half-yearly financial reports and
various statistical reports and information are prepared on behalf
of the Company.
Assessment of the Manager
The performance of the Manager is subject both to continual review
by the Board and regular annual reviews of the IMA by the
Management Engagement Committee.
The Portfolio Managers determine stock and fund selection and
asset allocation with a view to achieving the Company’s
investment objective and meeting shareholder expectations. The
Management Engagement Committee has reviewed the
Manager’s service provision and, taking into account the
performance of the portfolio and strategies being followed, the
other services provided by the Manager and the risk and
governance environment in which the Company operates, the
Board considers that the continuation of the appointment of the
Manager on the current terms is in the best interests of
shareholders.
Company Secretary
The Board has direct access to the advice and services of the
Company Secretary, IAML (acting under delegated authority from
IFML), which is responsible for ensuring that the Board and
Committee procedures are followed and that applicable rules and
regulations are complied with. The Company Secretary is also
responsible for advising the Board through the Chair on all
governance matters. The Company Secretary ensures that all
correspondence addressed to the Company, other than junk mail,
is reported to the Board and dealt with in a timely manner. The
Management Engagement Committee considered the Company
Secretary’s appointment separately and took into consideration
the service received during the year and noted the experience of
an outsourced model. The Committee concluded that the
continuing appointment of IAML was in the best interests of the
Company and shareholders.
Corporate Governance
The Corporate Governance Statement set out on page 42 is
included in this Directors’ Report by reference.
Performance and Dividends
Details of the Company’s and its performance, prospects and
dividends are included in the Strategic Report, on pages 24 to
26, and incorporated in this Directors’ Report by reference.
Future Developments
The Company’s future developments are summarised in the
Company’s Strategic Report on page 26.
40 INVESCO GLOBAL EQUITY INCOME TRUST PLC
GOVERNANCE – DIRECTORS’ REPORT
Greenhouse Gas Emissions
All of the Company’s activities are outsourced to third parties. As
such it does not have any physical assets, property, employees
or operations of its own and does not generate any greenhouse
gas or other emissions or consume any energy reportable under
the Companies Act 2006 (Strategic Report and Directors’ Report)
Regulations 2013 or the Companies (Directors’ Report) and
Limited Liability Partnerships (Energy and Carbon Report)
Regulations 2018, implementing the UK Government’s policy on
Streamlined Energy and Carbon Reporting. Under Listing Rule
The Company, as a closed ended investment fund, is currently
exempt from complying with the Task Force on Climate related
Financial Disclosures. Accordingly, the quantifiable amount of
carbon dioxide produced by the Company annually is zero tonnes.
Capital Structure
Movements in share capital over the course of the year (including
details of the acquisition of the Company’s own shares) are set
out in the issued share capital disclosure on page 26 and in
note 14 to the financial statements on pages 67 and 68.
Authorities given to the Directors at the AGM in 2024 to allot
shares, disapply statutory pre-emption rights and buy back shares
will expire at the forthcoming AGM. The Company intends to seek
new authorities at the 2025 AGM.
Rights Attaching to Shares
The rights attached to the shares, in addition to those conferred
on their holders by law, are set out in the Company’s Articles of
Association (Articles). The Articles may only be changed by the
shareholders by special resolution. A resolution to adopt new
Articles was passed at the 2024 AGM.
Under the Articles, shares in the Company may be issued with
such rights or restrictions, whether in regard to dividend, voting,
return of capital or otherwise, as the Company may from time to
time by ordinary resolution determine (or, in the absence of any
such determination, as the Directors may determine).
At a general meeting of the Company every member has one vote
on a show of hands and on a poll one vote for each ordinary share
held. The notice of general meeting specifies deadlines for
exercising voting rights either by proxy or present in person in
relation to resolutions to be passed at a general meeting.
Restrictions on Shares
The Directors may refuse to register any transfer of any share
which is not a fully paid share, although such discretion may not
be exercised in a way which the FCA regards as preventing
dealings in the shares from taking place on an open or proper
basis. The Directors may likewise refuse to register any transfer
of a share in favour of more than four persons jointly.
The Directors may also restrict voting powers, dividends and
transfers where shareholders fail to provide information with
respect to interests in voting rights when so requested.
The Company is not aware of any agreements between
shareholders that may result in restrictions on the transfer of
securities or voting rights.
Substantial Shareholders
As far as the Company was aware, the holdings of 3% and over of the Company’s issued share capital were:
At At
30 June 2025 31 May 2025
Holdings % Holdings %
Interactive Investor
(1)
7,553,300 11.84 7,135,375 11.36
Hargreaves Lansdown
(1)
7,421,466 11.63 7,167,911 11.41
Rathbones 3,408,026 5.34 3,366,135 5.36
AJ Bell
(1)
3,239,847 5.08 2,848,079 4.53
HSDL
(1)
2,705,075 4.24 2,621,447 4.17
Charles Stanley 2,493,924 3.91 2,491,869 3.97
Mr Philip Radburn 2,259,712 3.54 2,259,712 3.60
Mrs Lynn Davidson Under 3% — 1,882,819 3.00
(1) Execution-only.
Disclosure Required by UK Listing
Rule6.6.1R
The above rule requires listed companies to report certain
information in a single identifiable section of their Annual
Financial Reports. No disclosures are required under the rule for
the year to 31 May 2025.
Annual General Meeting (‘AGM’)
The AGM of the Company, will be held at 3rd Floor, 60 London Wall,
London, EC2M 5TQ at 9.30am on 21 October 2025. This venue
has wheelchair access and shareholders are encouraged to attend
the AGM. It is recommended that shareholders exercise their votes
by means of registering them with the Company’s registrar ahead
of the meeting, online or by completing a paper proxy form, and
appoint the Chair of the meeting as their proxy. Investors who hold
their shares through an investment platform should register their
votes via their platform. Questions, on the business of the meeting
or otherwise, may be addressed to the Company Secretary, by
email to investmenttrusts@invesco.com or, by letter, to 3rd Floor,
60 London Wall, London, EC2M 5TQ. A separate circular, including
the Notice of AGM and voting instructions, will be sent to
shareholders during September 2025.
By order of the Board
James Poole
Senior Company Secretary
Invesco Asset Management Limited
Corporate Company Secretary
1 August 2025
INVESCO GLOBAL EQUITY INCOME TRUST PLC 41
GOVERNANCE – THE COMPANY’S CORPORATE GOVERNANCE FRAMEWORK
The Company’s Corporate Governance
Framework
The Board and Committees
Responsibility for good governance lies with the Board. The governance framework of the Company reflects the fact that as an investment
company it has no employees and outsources investment management to the Manager and administration to the Manager and other
functions to external service providers.
The Board
Five non-executive Directors
(‘NEDs’)
Chair – Sue Inglis
Key responsibilities:
– to set strategy, values and
standards;
– to provide leadership within a
framework of prudent effective
controls which enable risk to be
assessed and managed; and
– to appoint service providers and
to challenge constructively and
scrutinise their performance.
Nomination Committee
All NEDs
Chair: Sue Inglis
Key responsibilities:
– to review regularly the Board’s structure and composition;
and
– to make any new appointments.
Marketing Committee
All NEDs
Chair: Mark Dampier
Key responsibilities:
– to oversee marketing and investor relations.
Remuneration Committee Function
The Board as a whole performs this function
Key responsibility:
– to set the remuneration policy of the Company.
Audit Committee
All NEDs
Chair: Craig Cleland
Key responsibilities:
– to oversee financial reporting, risk assessment and the
control environment; and
– to manage the relationship with the external auditor,
including fees and any non audit services.
Management Engagement Committee
All NEDs
Chair: Tim Woodhead
Key responsibilities:
– to review the performance of the Manager and the terms
of the IMA; and
– to review the performance of the other service providers.
42 INVESCO GLOBAL EQUITY INCOME TRUST PLC
GOVERNANCE – CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 31 MAY 2025
The Board is committed to maintaining high standards of
corporate governance and is accountable to shareholders for the
governance of the Company’s affairs.
The Directors have considered the principles and provisions of
the latest AIC Code of Corporate Governance (‘AIC Code’). The
AIC Code addresses all the principles and provisions set out in the
UK Corporate Governance Code (‘UK Code’), as well as setting
out additional principles and recommendations on issues that are
of specific relevance to investment companies. The AIC code is
available from the Association of Investment Companies website
(www.theaic.co.uk). The UK code is available from the Financial
Reporting Council website (www.frc.org.uk).
The Company has complied with the 2019 AIC Code, and hence
has met its obligations under the 2018 UK Code, except the
provisions relating to:
• the role of the chief executive;
• executive directors’ remuneration;
• the requirement to establish a remuneration committee;
and
• the need for an internal audit function.
The Board considers these provisions are not relevant to the
position of Invesco Global Equity Income Trust plc, being an
externally managed investment company with no executive
employees and, in relation to the fourth, in view of the Manager,
which is responsible for the administration of the Company,
having an internal audit function. As noted on page 45 the Board
has resolved that a remuneration committee is not appropriate
for a company of this nature with a Board of this size.
Information on how the Company has applied the principles of
the 2019 AIC Code follows:
The Company’s purpose, overall strategy and the Board’s culture
are set out on page 24. The investment objective and policy of
the Company is set out on page 24.
A statement on how s.172 of the Companies Act 2006 has been
applied is set out on pages 29 to 31.
The composition and operation of the Board and its committees
are summarised on pages 27 and 28 and, in respect of the Audit
Committee, on pages 43 and 44.
The Directors biographies on page 35 set out their other
directorships and further factors pertinent to potential conflicts
of interest are set out on page 38.
Tenure, succession, evaluation and appointment of Directors are
summarised on pages 37 and 38.
The Board’s policy on diversity is set out on page 38.
The Company’s approach to internal control and risk management
is summarised in the Audit Committee Report on
pages 43 and 44. The principal risks and uncertainties are set out
on pages 26 to 29.
Statements supporting preparation of the financial statements on
a going concern basis and in respect of the Company’s
longer-term viability are set out on pages 29 and 39, respectively.
The contractual arrangements with, and assessment of, the
Manager are summarised on pages 24 and 39.
The Company’s capital structure and voting rights are
summarised on pages 26 and 40.
The most substantial shareholders in the Company are listed on
page 40.
The rules concerning the appointment and replacement of
Directors are contained in the Company’s Articles of Association
and are discussed on pages 37 and 38. There are no agreements
between the Company and its Directors concerning compensation
for loss of office.
Powers to issue or buy back the Company’s shares, which are
sought at least annually, and any amendment of the Company’s
Articles of Association, require approval by shareholders.
Corporate Governance Statement
INVESCO GLOBAL EQUITY INCOME TRUST PLC 43
GOVERNANCE – AUDIT COMMITTEE REPORT
Audit Committee Report
FOR THE YEAR ENDED 31 MAY 2025
The Audit Committee comprises all the Directors on the Board.
The AIC Code permits the Chair of the Board to be a member of
the audit committee of an investment trust. Recognising the
significant experience of Sue Inglis, it is considered appropriate
for the Chair to be a member of the Audit Committee.
The Committee members consider that collectively they are
appropriately experienced to fulfil the role required, including with
respect to recent and relevant financial knowledge and knowledge
about investment and the investment company sector. A separate
risk committee has not been established. Review of the
Company’s internal control and risk management fall within the
terms of reference of the Audit Committee.
Audit Committee Responsibilities
The responsibilities of the Audit Committee include:
• reviewing the systems of internal control and the
management of financial risks;
• consideration of the Manager’s internal audit programme
and the results reported therefrom;
• monitoring the effectiveness of the Manager’s internal audit
function and the adequacy of its resources;
• reviewing each aspect of the financial reporting process,
the Half-Yearly and Annual Financial Reports and
announcements of the Company and ensuring compliance
with relevant statutory and listing requirements;
• management of the relationship with the external auditor,
including its appointment and remuneration, and the scope,
effectiveness, independence and objectivity of its audit; and
• advising the Board on whether the Committee believes the
Annual Financial Statements taken as a whole is fair,
balanced and understandable and provides the necessary
information for shareholders to assess the Company’s
position and performance, business model and strategy.
The Audit Committee meets at least three times each year to
review the internal financial and non-financial controls, to approve
the contents of the draft Half-Yearly and Annual Financial Reports
and to review the Company’s accounting policies and to approve
the audit plan. In addition, the Audit Committee reviews: the
auditor’s independence, objectivity and effectiveness; the service
organisation controls of the service providers to the Company;
the effectiveness of the audit process; and, together with the
Manager, reviews the Company’s compliance with financial
reporting and regulatory requirements. The Manager’s internal
audit and compliance teams report to the Committee at least
twice each year and the depositary reports at least annually.
Representatives of Grant Thornton UK LLP, the Company’s
auditor, attended the Audit Committee meeting at which the draft
Annual Financial Report was reviewed and were given the
opportunity to speak to Committee members without the
presence of representatives of the Manager.
The audit plan is agreed with the auditor in advance of the
financial year end. At this stage, matters for audit focus are
discussed and agreed. These matters are given particular
attention during the audit process and, among other matters, are
reported on by the auditor in their audit findings report to the
Committee. This report is considered by the Committee and
discussed with the auditor and the Manager prior to the approval
and signing of the financial statements.
Accounting Matters and Significant Areas
For the year end the accounting matters that were subject to
specific consideration by the Committee, where necessary, were
as follows:
Significant area How addressed
The Audit Committee obtained confirmation from the Manager that each stock line had been
reviewed to ensure that those marked ex-dividend in the year were included in the income
statement and that any special dividends were appropriately attributed to revenue or capital
as set out in the accounting policy 1(e). The Audit Committee also considered the auditor’s
audit findings report on their audit of the accuracy, occurrence and completeness of
investment income.
Income Recognition
Portfolio Ownership and Valuation
The investments are held on behalf of the Company by the Company’s custodian.
The Manager confirmed to the Committee that the Company’s records, both throughout the
year and at the year end, had been agreed to the custodian’s records. The depositary also
undertook an independent monthly reconciliation to custodian records, including at
the balance sheet date. Actively traded listed investments are valued using stock exchange
prices provided by third party pricing vendors and the valuations are provided to the Board
at each meeting. Investments that are unlisted or not actively traded are valued as set out
in the accounting policy 1(b)(v), and any such valuations are reviewed by the Manager’s
pricing committee and the Audit Committee. The Audit Committee also considered the
auditor’s audit findings report on their audit of the valuation and existence of investments.
44 INVESCO GLOBAL EQUITY INCOME TRUST PLC
GOVERNANCE – AUDIT COMMITTEE REPORT
These matters were discussed with the Manager and the auditor
in pre-year end audit planning, and were satisfactorily addressed
as described above through consideration of reports provided by
the Manager and the auditor at the conclusion of the audit
process. There were no significant matters arising from the audit
that needed to be brought to the Board’s attention.
Consequently, and following a thorough review of the 2025
Annual Financial Report, the Audit Committee is satisfied that
taken as a whole the report is fair, balanced and understandable
and provides the information necessary for shareholders to assess
the Company’s position and performance, business model and
strategy.
As Audit Committee Chair I, Craig Cleland, intend to be present
at the AGM to deal with questions relating to the financial
statements.
Auditor
Grant Thornton UK LLP was selected to be the Company’s
external auditor following a tender exercise in 2016 and was
appointed by shareholders on 4 October 2016. This year’s audit
of the Company’s Annual Financial Report was the ninth
performed by Grant Thornton UK LLP. William Pointon has served
as the audit partner responsible for the Company’s audit since
the 2022 audit.
The Committee assessed the effectiveness of the external audit
process, having reviewed the audit plan, its execution and
reporting, through discussions with the Manager and the auditor
and consideration of review points raised. In addition, the
Committee considered the independence of the external auditor
and the objectivity of the audit process and is satisfied that Grant
Thornton UK LLP has fulfilled its obligations to shareholders as
independent auditor to the Company.
Under auditor rotation regulations, an audit tender needs to be
undertaken at the ten year midpoint from appointment and
consequently the Company intends to conduct an audit tender
during the current financial year.
It is the Company’s policy not to seek substantial non-audit
services from its auditor. All non-audit services require approval
in advance by the Audit Committee. Prior to any engagement, the
Committee considers whether the particular skills and experience
of the audit firm would make it a suitable supplier of those services
and ensure that there would be no threat to the objectivity and
independence in the conduct of the audit arising as a result. No
non-audit services were provided during the year to 31 May 2025
(2024: £36,750 plus VAT). The Directors are satisfied that the
work undertaken in the prior year, (which related to the
Company’s restructuring), complied with auditors’ ethical
guidelines and did not threaten the auditor’s objectivity and
independence in the conduct of the audit.
Internal Controls and Risk Management
The Committee has established an ongoing process for
identifying, evaluating and managing the major risks faced by the
Company, including emerging risks, and this forms the basis of
the Board’s robust assessment of the risks to which the Company
is exposed. Risks are reviewed by means of a Risk Control
Summary (‘RCS’), which sets out mitigating controls and the
information flow to the Committee and Directors. The assessed
ratings of the mitigated risks, in the form of a risk heat map, allow
the Directors to concentrate on those risks that they gauge to be
most significant to the Company’s operations. These are reflected
in the list of principal risks and uncertainties brought to the
attention of investors in the Strategic Report on pages 26 to 29.
The Audit Committee, on behalf of the Board, is responsible for
ensuring that the Company maintains a sound system of internal
control to mitigate risk and safeguard shareholders’ investments
and the Company’s assets. The Company relies on external
service providers for all of its operations and on the controls they
operate on behalf of the Company. Consequently these are
integral to the effectiveness of the Company’s system of
internal controls.
The Committee receives and considers at least annually, together
with representatives of the Manager, service organisation control
reports from the relevant service providers in relation to the
operational controls of the Manager, depositary, custodian and
registrar. These each include an independent auditor’s opinion on
the fairness of the presentation of the description, the suitability
of the design and the operating effectiveness of the controls to
achieve the related control objectives stated in that description,
based on their examination.
The Committee ensures that appropriate action is taken to
remedy any significant failings or weaknesses identified from its
reviews. No significant items were identified in the year.
The Audit Committee also receives regular reports from the
depositary and the Manager’s internal audit and compliance
teams, as discussed earlier in this report.
The risk management and internal control system has been in
place throughout the year and up to the date of this report.
The Committee has reviewed and accepted the Manager’s
whistleblowing policy under which staff of Invesco Fund Managers
Limited can, in confidence, raise concerns about possible
improprieties or irregularities in matters affecting the Company.
Internal Audit
Due to the nature of the Company, being an externally managed
investment company with no executive employees, and in view of
the Manager having an internal audit function, the Company does
not have its own internal audit function.
Craig Cleland
Chair of the Audit Committee
1 August 2025
INVESCO GLOBAL EQUITY INCOME TRUST PLC 45
GOVERNANCE – DIRECTORS’ REMUNERATION REPORT
FOR THE YEAR ENDED 31 MAY 2025
This Remuneration Report has been prepared in accordance with
The Large and Medium-sized Companies and Groups (Accounts
and Reports) (Amendment) Regulations 2013 (the ‘Regulations’)
and the UK Listing Rules of the Financial Conduct Authority.
Ordinary resolutions for the approval of the Directors’
Remuneration Policy (binding) and the Chair’s Annual Statement
and Report on Remuneration (advisory) will be put to
shareholders at the Annual General Meeting.
All Directors are non-executive and the Company has no chief
executive officer or employees; as such some of the reporting
requirements contained in the Regulations are not applicable and
have not been reported on, including the requirement for a future
policy table and an illustrative representation of the level of
remuneration that could be received by each individual Director.
It is believed that all relevant information is disclosed within this
report in an appropriate format.
The Company’s auditor is required to audit certain of the
disclosures provided in this report. Where disclosures have been
audited, they are indicated in this report. The independent
auditor’s opinion is included on pages 50 to 56.
Remuneration Responsibilities
The Board has resolved that a remuneration committee is not
appropriate for a company of this nature with a Board of this size.
Remuneration is therefore regarded as part of the Board’s
responsibilities, to be addressed regularly. All Directors are
non-executive and all participate in meetings of the Board at
which Directors’ remuneration is considered.
Directors’ Remuneration Policy
The Board’s policy is that the remuneration of non-executive
Directors should be fair and reasonable in relation to the time
commitment and responsibilities of the Directors. Fees for
Directors are determined by the Board within the limit stated in
the Company’s Articles of Association (‘Articles’). The Articles
limit the aggregate fees to £200,000 per annum and any change
to this limit requires shareholder approval.
The Directors’ fees are subject to regular review by the Board
having regard to the above factors and fee trends in the
investment company sector although such review will not
necessarily result in any changes. The same principles set out in
this policy and same level of remuneration apply to any new
Directors.
Directors do not have service contracts. Directors are appointed
under letters of appointment, copies of which are available for
inspection at the registered office of the Company, at its
correspondence address (see page 78), and on the Manager’s
website www.invesco.com/uk/en/investment-trusts/invesco-
global-equity-income-trust.html. Directors are entitled to
be reimbursed for any reasonable expenses properly incurred by
them in connection with the performance of their duties and
attendance at Board and general meetings and committees.
Directors are not eligible for bonuses, pension benefits, share
options or other incentives or benefits. Directors may, in the
furtherance of their duties, take legal advice at the Company’s
expense up to an initial outlay of £10,000 per Director, having
first consulted with the Chair. There are no agreements between
the Company and its Directors concerning compensation for loss
of office.
Notwithstanding the above, the Company’s Articles also provide
that additional discretionary payments can be made for services
which in the opinion of the Board are outside the scope of the
ordinary duties of a Director. Any such payment would reflect the
Board’s assessment of the value to the Company of such services.
This Directors’ Remuneration Policy is the same as that approved
by shareholders at the last AGM. This policy is intended to take
effect immediately upon its approval by shareholders. The
Company has no employees and consequently has no policy on
the remuneration of employees.
The Board will consider, where raised, shareholders’ views on
Directors’ remuneration.
Annual Statement on Directors’
Remuneration
For the year to 31 May 2025 the Chair of the Company was paid
fees at the rate of £41,000 per annum, the Chair of the Audit
Committee was paid fees at the rate of £35,000 per annum, the
Senior Independent Director was paid fees at the rate of £32,500
per annum and the other Directors were paid fees at the rate of
£29,000 per annum.
During the year, the Board reviewed the level of fees, which were
last increased in June 2024, to ensure that they were fair and
reasonable compared to those of similar sized investment
companies. Consequently, to reflect this, it was agreed to increase
overall Directors’ fees by circa. 4% with effect from 1 June 2025
as follows: Chair £42,600; Chair of the Audit Committee
£36,400; Senior Independent Director £33,800; and other
Directors £30,200. The total fees to be paid to the Directors
during the year ending 31 May 2026 will be within the limit
prescribed by the Company’s Articles of Association. An external
remuneration consultant was not used.
The Board believes these fee levels properly reflect the time spent
by the Directors on the Company’s business and are at a level to
ensure that candidates of a high calibre are recruited to the
Board.
There were no other major decisions on Directors’ remuneration
or any other changes to the remuneration paid to each individual
Director in the year under review.
Directors’ Remuneration Report
46 INVESCO GLOBAL EQUITY INCOME TRUST PLC
GOVERNANCE – DIRECTORS’ REMUNERATION REPORT
Report on Remuneration for the Year
Ended 31 May 2025
The Company’s Performance
The graph below plots, in annual increments, the net asset value
total return and share price total return to shareholders compared
to the total return of the benchmark (see definition of benchmark
in the Glossary of Terms and Alternative Performance Measures on
page 81), which was adopted by the Company for comparison
purposes. Figures have been rebased to 100 at 31 May 2015.
l
Share price
l
MSCI World Index (£)
l
Net asset value
l
Benchmark
(2)
Source: LSEG Data & Analytics.
Single Total Figure of Remuneration for the Year (Audited)
The single total figure of remuneration for each Director is detailed below, together with the prior year comparative. Directors’
remuneration is all fixed and they do not receive any variable remuneration.
2025 2024
Taxable
(1)
Taxable
(1)
Fees benefits Total Fees benefits Total
£ £ £ £ £ £
Sue Inglis (Chair)
(2)
24,960 – 24,960 – – –
Craig Cleland (Chair of the Audit Committee) 35,000 996 35,996 33,600 474 34,074
Mark Dampier 29,000 2,159 31,159 28,350 1,798 30,148
Helen Galbraith
(3)
14,500 – 14,500 – – –
Tim Woodhead (Senior Independent Director)
(4)
30,812 2,703 33,515 28,350 433 28,783
Victoria Muir
(5)
19,442 778 20,220 49,875 879 50,754
Davina Curling
(5)
15,412 484 15,896 31,500 479 31,979
Total 169,126 7,120 176,246 171,675 4,063 175,738
(1) Taxable benefits relate to the grossed up costs of travel.
(2) Appointed to the Board on 10 October 2024 and appointed Chair on 21 November 2024.
(3) Appointed to the Board on 1 December 2024.
(4) Appointed Senior Independent Director on 21 November 2024.
(5) Retired from the Board on 21 November 2024.
Directors’ Shareholdings and Share Interests
(Audited)
The beneficial interests of the Directors in the ordinary share capital
of the Company at 31 May 2025 and 31 May 2024 are set out
below:
31 May 2025 31 May 2024
Sue Inglis
(1)
25,000 —
Craig Cleland 37,706 37,706
Mark Dampier
(2)
40,755 21,003
(2)
Tim Woodhead 35,000 35,000
Helen Galbraith
(3)
14,000 —
(1) Appointed to the Board on 10 October 2024.
(2) Mark Dampier has non-beneficial interests in 6,319 shares in addition
to the beneficial interests noted in the above tables.
(3) Appointed to the Board on 1 December 2024.
Other than as noted below, no Director had any interests,
beneficial or otherwise, in the securities of the Company during
the year or since, up to the date of this report.
Directors hold shares in the Company at their discretion. Share
ownership is encouraged, but no guidelines have been set.
60
100
140
180
220
260
300
340
May-25May-24May-23May-22May-21May-20May-19May-18May-17May-16May-15
INVESCO GLOBAL EQUITY INCOME TRUST PLC 47
GOVERNANCE – DIRECTORS’ REMUNERATION REPORT
Relative Importance of Spend on Pay
The following table compares the remuneration paid to the Directors with aggregate distributions to shareholders in the year to 31 May
2025 and the prior year.
2025 2024 Change
£’000 £’000 £’000
Total Directors’ remuneration 176 176 —
Total dividends paid to shareholders 7,845 6,696 1,149
Total cost of shares bought back 4,270 2,701 1,569
Annual Percentage Change in Directors’ Remuneration
The table below sets out the annual percentage change in Directors’ remuneration for the past five years in respect of each Director.
Year ended Year ended Year ended Year ended Year ended
31 May 2025 31 May 2024 31 May 2023 31 May 2022 31 May 2021
Fees Fees Fees Fees Fees
% % % % %
Sue Inglis n/a n/a n/a n/a n/a
Victoria Muir
(3)
n/a 29.4
(2)
6.6 45.4
(1)
(1.8)
Craig Cleland
(3)
5.6 4.4 7.0 1.2 (3.7)
Davina Curling
(3)
n/a 5.5 7.5 n/a n/a
Mark Dampier
(4)
3.4 4.1 12.8 n/a n/a
Helen Galbraith n/a n/a n/a n/a n/a
Tim Woodhead
(4)
16.4 5.8 8.0 n/a n/a
(1) Victoria Muir was appointed Chairman on 1 June 2021. The % increase reflects her change in role during the year ended 31 May 2022 and the
additional fee payable for that position.
(2) Victoria Muir was paid a one-off extra fee for additional services undertaken during the year ended 31 May 2024 in respect of the Company’s
restructuring. The % increase includes this one-off extra fee.
(3) Retired from the Board on 21 November 2024.
(4) Tim Woodhead was appointed Senior Independent Director on 21 November 2024. The % increase reflects his change in role during the year ended
31 May 2025 and the additional fee payable for that position.
As noted above, subsequent to the year end, the Directors’ fees were increased on 1 June 2025.
Voting at Last Annual General Meeting
At the Annual General Meeting of the Company held on 21 November 2024 resolutions were put to shareholders to approve the
Directors’ Remuneration Policy (binding) and the Annual Statement and Report on Remuneration (advisory). These were both passed.
The results of the polls in respect of these resolutions were as follows:
Votes Votes Votes
for % against % withheld
Directors’ Remuneration Report 10,588,596 98.77 132,354 1.23 56,557
Annual Statement and Report on
Remuneration 10,607,930 98.79 130,005 1.21 39,572
Approval
The Directors’ Remuneration Report was approved by the Board of Directors on 1 August 2025.
Signed on behalf of the Board of Directors
Sue Inglis
Chair
1 August 2025
GOVERNANCE – STATEMENT OF DIRECTORS’ RESPONSIBILITIES
48 INVESCO GLOBAL EQUITY INCOME TRUST PLC
(In respect of the preparation of the annual financial report)
The Directors are responsible for preparing the Annual Financial
Report in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under the law the Directors
have elected to prepare financial statements in accordance with
UK Accounting Standards, including FRS 102 ‘The Financial
Reporting Standard applicable in the UK and Republic of Ireland.’
Under company law, the Directors must not approve the financial
statements unless they are satisfied that they give a true and fair
view of the state of affairs of the Company and of the profit or
loss of the Company for that period.
In preparing these financial statements, the Directors are
required to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and estimates that are reasonable and
prudent;
• state whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in the financial statements; and
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time
the financial position of the Company and which enable them to
ensure that the financial statements comply with the Companies
Act 2006. They have general responsibility for taking such steps
as are reasonably open to them to safeguard the assets of the
Company and to prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also
responsible for preparing a Strategic Report, a Directors’ Report,
which includes a Corporate Governance Statement, and a
Directors’ Remuneration Report that comply with that law and
those regulations.
The Directors confirm that:
• in so far as they are aware, there is no relevant audit
information of which the Company’s Auditor is unaware; and
• each Director has taken all the steps that they ought to have
taken as a Director in order to make themselves aware of any
relevant audit information and to establish that the Company’s
Auditor is aware of that information.
The Directors of the Company each confirm to the best of their
knowledge that:
• the financial statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair view
of the assets, liabilities, financial position, net return and cash
flows of the Company; and
• this Annual Financial Report includes a fair review of the
development and performance of the business and the position
of the Company together with a description of the principal
risks and uncertainties that it faces.
The Directors consider that this Annual Financial Report, taken
as a whole, is fair, balanced and understandable and provides the
information necessary for shareholders to assess the Company’s
position and performance, business model and strategy.
Signed on behalf of the Board of Directors
Sue Inglis
Chair
1 August 2025
Statement of Directors’ Responsibilities
Electronic Publication
The Annual Financial Report is published on the Manager’s website www.invesco.com/uk/en/investment-trusts/invesco-global-
equity-income-trust.html. The Directors are responsible for the maintenance and integrity of the corporate and financial information
included on the Company’s website, which is maintained by the Company’s Manager. Legislation in the UK governing the preparation
and dissemination of financial statements may differ from legislation in other jurisdictions.
INVESCO GLOBAL EQUITY INCOME TRUST PLC 49
IGETA focus on reliable income, underpinned by
a 4% annual dividend target
(1)
(1) The dividend policy involves paying at least 4% calculated on the unaudited prior year-end NAV, paid
quarterly in equal amounts. This is not guaranteed. The net asset value is the value of the Company’s
assets less liabilities.
Financial
Independent Auditor’s Report ...............................................50
Income Statement ................................................................57
Statement of Changes in Equity ............................................58
Balance Sheet ......................................................................59
Cash Flow Statement ............................................................60
Notes to the Financial Statements ........................................61
INVESCO GLOBAL EQUITY INCOME TRUST PLC 49
FINANCIAL – INDEPENDENT AUDITOR’S REPORT
Opinion
Basis for opinion
We conducted our audit in accordance with International Standards
on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities
under those standards are further described in the ‘Auditor’s
responsibilities for the audit of the financial statements’ section of
our report. We are independent of the company in accordance with
the ethical requirements that are relevant to our audit of the
financial statements in the UK, including the FRC’s Ethical Standard
as applied to listed public interest entities, and we have fulfilled our
other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We are responsible for concluding on the appropriateness of the
directors’ use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant
doubt on the company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required
to draw attention in our report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to
modify the auditor’s opinion. Our conclusions are based on the
audit evidence obtained up to the date of our report. However,
future events or conditions may cause the company to cease or
continue as a going concern.
Our evaluation of the directors’ assessment of the company’s ability
to continue to adopt the going concern basis of accounting included:
• evaluating the accuracy of the prior year’s forecast and the
underlying data used in the management’s forecasts;
• evaluating the reasonableness of management’s income
forecasts, including the assumptions used and extent of the
available headroom, both in terms of cash resources and
compliance with loan covenants;
• evaluating the liquidity of investments to ensure the company
can meet its liabilities as they fall due, and assessing
management’s stress testing of the assumptions in use in their
forecasts;
• obtaining support for the renewal of the revolving credit facility
which was renewed during the audit period and obtaining an
understanding of the company’s ability to settle the facility
should that be required;
• assessing the resilience of the forecasts to potential changes in
key assumptions, and evaluating management’s contingency
plans should such scenarios materialise;
• obtaining an understanding of how management has assessed
the impact of events and market conditions in relation to
ongoing global macroeconomic factors within their forecasts;
• assessing the disclosures in the financial statements in relation
to the impact of macro-economic uncertainties, including
fluctuations in inflation, interest rates, and geopolitical
developments; and
• identifying applicable subsequent events and discussing their
potential implications with management.
In our evaluation of the directors’ conclusions, we considered the
inherent risks associated with the company’s business model
including effects arising from macro-economic uncertainties such
as changes in inflation and interest rates and geopolitical events,
we assessed and challenged the reasonableness of estimates
made by the directors and the related disclosures and analysed
how those risks might affect the company’s financial resources or
ability to continue operations over the going concern period.
In auditing the financial statements, we have concluded that the
directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the
company’s ability to continue as a going concern for a period of
at least twelve months from when the financial statements are
authorised for issue.
In relation to the company’s reporting on how it has applied the
UK Corporate Governance Code, we have nothing material to add
or draw attention to in relation to the directors’ statement in the
financial statements about whether the directors considered it
appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with
respect to going concern are described in the relevant sections
of this report.
Our opinion on the financial statements is unmodified
We have audited the financial statements of Invesco Global Equity Income Trust plc (the ‘company’) for the year ended 31 May
2025, which comprise the Income Statement, the Statement of Changes in Equity, the Balance Sheet, the Cash Flow Statement
and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework
that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting
Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted
Accounting Practice).
In our opinion, the financial statements:
• give a true and fair view of the state of the company’s affairs as at 31 May 2025 and of its return for the year then ended;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of the Companies Act 2006.
Independent Auditor’s Report
To the members of Invesco Global Equity Income Trust plc
50 INVESCO GLOBAL EQUITY INCOME TRUST PLC
FINANCIAL – INDEPENDENT AUDITOR’S REPORT
INVESCO GLOBAL EQUITY INCOME TRUST PLC 51
Our approach to the audit
Overview of our audit approach
Overall materiality: £2.12 million, which represents 1% of the company’s net assets.
Key audit matters were identified as:
• Valuation of investments held at fair value through profit or loss (same as previous year);
and
• Occurrence and completeness of investment income (same as previous year).
Our auditor’s report for the year ended 31 May 2024 included investment existence and
valuation as a key audit matter. For the current year ended 31 May 2025, we no longer consider
the existence of investments as a key audit matter. The investments held are listed, and there
have been no historical issues with the existence of investments held.
Our audit approach was a risk-based substantive audit focused on the valuation of investments
held at fair value through profit or loss at year end and the occurrence and completeness of
investment income recognised during the year. There was no significant change in our approach
from the prior year.
Key audit matters
Key audit matters are those matters that, in our professional judgement,
were of most significance in our audit of the financial statements of the
current period and include the most significant assessed risks of material
misstatement (whether or not due to fraud) that we identified. These
matters included those that had the greatest effect on: the overall audit
strategy; the allocation of resources in the audit; and directing the
efforts of the engagement team. These matters were addressed in the
context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion
on these matters.
In the graph below, we have presented the key audit matters and significant risks relevant to the audit. This is not a complete list of all
risks identified by our audit.
Extent of management judgement
Valuation of investments
held at fair value through
profit or loss
Occurrence and
completeness of investment
income
Management override
of controls
Key audit matter
Significant risk
High
Low
Potential
financial
statement
impact
High
Low
Key Audit
Matters
FINANCIAL – INDEPENDENT AUDITOR’S REPORT
52 INVESCO GLOBAL EQUITY INCOME TRUST PLC
Key Audit Matter How our scope addressed the matter
In responding to the key audit matter, we performed the following
audit procedures:
• evaluating whether the company’s investment valuation policy
complies with United Kingdom Generally Accepted
Accounting Practice and the Statement of Recommended
Practice ‘Financial Statements of Investment Trust Companies
and Venture Capital Trusts’ (the ‘SORP’), and whether
management applied the policy consistently and appropriately
in valuing investments;
• independently pricing 100% of the investment portfolio by
obtaining relevant bid prices from independent market data
providers; and
• confirming that the investments were actively traded by
obtaining trading volume reports from an independent market
data provider for the week preceding and following the year
end for the equity investments held.
Our results
Our audit work did not identify any material misstatements in the
valuation and existence of investments held at fair value through
profit or loss.
Valuation of investments held at fair value through profit
or lo
ss
We identified valuation of investments held at fair value through
profit or loss as one of the most significant assessed risks of
material misstatement due to fraud and error.
The company’s business objective is to provide shareholders with
an investment strategy intended to generate attractive
risk-adjusted returns. The investment portfolio at £211.4 million
is a significant material balance in the balance sheet at year-end
and it has the most significant impact on the company’s main
performance indicator being the NAV.
Incorrect asset pricing of the investments held by the company
could have a material impact on the portfolio valuation and
therefore, the return generated for shareholders.
Relevant disclosures in the Annual Financial Report
• Financial statements: note 9 Investments held at fair value,
page 66
• Audit committee report: Portfolio Ownership and Valuation,
page 43
In r
esponding to the key audit matter, we performed the following
audit procedures:
• evaluating whether the company’s revenue recognition policy
for investment income complies with United Kingdom
Generally Accepted Accounting Practice and the SORP;
• testing the completeness of investment income by selecting
a sample of investments and agreeing the relevant investment
income receivable for those equities to the company’s
records. For each selected investment, we also obtained the
applicable dividend rate entitlements from independent
market data providers and verified to the amounts recorded
in the company’s accounting records;
• for a sample of dividends selected from the income portfolio,
we tested occurrence by developing an expectation of
investment income based on dividend rates obtained from
independent market data providers and the holding of the
investment at the ex-dividend date, and compared to the
dividend income recorded for the respective investment.
In addition, we traced the receipt of the dividend income to
bank statements;
• performing a search for special dividends on the equity
investments held during the year to determine whether
dividend income attributable to those investments has been
properly recognised. We also assessed the appropriateness
of the categorisation of special dividends as either revenue
or capital receipts; and
• assessing manual and other journal entries posted to revenue
and assessing their appropriateness.
Our results
Our audit work did not identify any material misstatements
concerning the occurrence and completeness of investment
income recognised during the year.
Occurrence and completeness of investment income
W
e identified occurrence and completeness of investment income
as one of the most significant assessed risks of material
misstatement due to fraud and error.
Under ISA (UK) 240 ‘The auditor’s responsibilities relating to
fraud in an audit of financial statements’ there is a presumed risk
that there are risks of fraud in revenue recognition.
Investment income is the company’s major source of revenue and
a significant material balance in the income statement of
£4.4 million. There is a risk that investment income may be
materially misstated due to fraudulent recognition or error in the
recording of income transactions. This could also impact the level
of distribution required under ITC regulations.
Relevant disclosures in the Annual Financial Report
• Financial statements: Note 1(d) Income, page 62 and note 2
Income, page 63
• Audit committee report: Income Recognition, page 43
FINANCIAL – INDEPENDENT AUDITOR’S REPORT
INVESCO GLOBAL EQUITY INCOME TRUST PLC 53
Our application of materiality
We apply the concept of materiality both in planning and performing the audit, and in evaluating the effect of identified misstatements
on the audit and of uncorrected misstatements, if any, on the financial statements and in forming the opinion in the auditor’s report.
Materiality was determined as follows:
Materiality measure Company
We define materiality as the magnitude of misstatement in the financial statements that, individually
or in the aggregate, could reasonably be expected to influence the economic decisions of the users of
these financial statements. We use materiality in determining the nature, timing and extent of our audit
work.
Materiality for financial
s
tatements as a whole
£2.12 million (2024: £1.98 million), which represents 1% of net assets.
In de
termining materiality, we made the following significant judgements:
• We considered net assets the most appropriate benchmark as this is primarily composed of the
company’s investment portfolio, which is considered to be the key driver of the company’s total
return performance and forms a part of the NAV calculation.
• In addition, we determined 1% of NAV to be reasonable based on the nature of the company as it
invests largely in listed investments.
Materiality for the current year is higher than the level that we determined for the year ended 31 May
2024 to reflect an increase in net assets in the current year.
Materiality threshold
Signific
ant judgements
made by auditor in
determining the materiality
We set performance materiality at an amount less than materiality for the financial statements as a
whole t
o reduce to an appropriately low level the probability that the aggregate of uncorrected and
undetected misstatements exceeds materiality for the financial statements as a whole.
Performance materiality
us
ed to drive the extent of
our testing
£1.59 million (2024: £1.48 million), which is approximately 75% (2024: 75%) of financial statement
mat
eriality.
In determining performance materiality, we made the following significant judgements:
• The business model has not changed, and the engagement team has sufficient knowledge and
experience of the business; and
• There have been no material misstatements noted in the prior year and no significant control
deficiencies.
Performance materiality
threshold
Significant judgements
made by auditor in
determining the
performance materiality
We determine specific materiality for one or more particular classes o
f transactions, account balances
or disclosures for which misstatements of lesser amounts than materiality for the financial statements
as a whole could reasonably be expected to influence the economic decisions of users taken on the
basis of the financial statements.
Specific materiality
We determined a lower level of specific materiality for the following areas:
•
Investment income and management fees; and
• Related party transactions and directors’ remuneration.
Specific materiality
We determine a threshold for reporting unadjusted differences to the audit committee. Communication of
mis
statements to the audit
committee
£0.11 million (2024: $0.10 million), which is approximately 5% of financial statement materiality, and
mis
statements below that threshold that, in our view, warrant reporting on qualitative grounds.
Threshold for
communication
FINANCIAL – INDEPENDENT AUDITOR’S REPORT
54 INVESCO GLOBAL EQUITY INCOME TRUST PLC
The graph below illustrates how performance materiality interacts with our overall materiality and the threshold for communication to
the audit committee.
Overall materiality
FSM: Financial statement materiality, PM: Performance materiality, TfC: Threshold for communication to the audit committee.
An overview of the scope of our audit
We performed a risk-based audit that requires an understanding
of the company’s business and in particular matters related to:
Understanding the company and its environment,
including controls
• The engagement team obtained an understanding of relevant
internal controls at both the company and third-party service
providers. This included obtaining and reading internal control
reports prepared by a third-party auditor detailing the
description, design and operating effectiveness of internal
controls implemented by the administrator and at other
relevant third-party service providers.
Work to be performed on financial information of
the company (including how it addressed the key
audit matters)
• The engagement team performed substantive testing by
obtaining confirmation on valuation of the company’s
investments and agreeing the investment income to an
independent source and bank for occurrence and completeness.
Performance of our audit
• Our audit was performed fully remotely.
Changes in approach from previous period
• There has been one change in scope of the current year audit
from the scope of that of the prior year. Existence of
Investments held at fair value, is no longer considered a key
audit matter since the investments held are listed, and there
have been no historical issues with the existence of
investments held. In addition, we test 100% of listed
investments to the custodian.
Other information
The other information comprises the information included in the
annual financial report, other than the financial statements and
our auditor’s report thereon. The directors are responsible for the
other information contained within the annual financial report.
Our opinion on the financial statements does not cover the other
information and, except to the extent otherwise explicitly stated
in our report, we do not express any form of assurance conclusion
thereon.
Our responsibility is to read the other information and, in doing
so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge
obtained in the audit or otherwise appears to be materially
misstated. If we identify such material inconsistencies or apparent
material misstatements, we are required to determine whether
there is a material misstatement in the financial statements
themselves. If, based on the work we have performed, we
conclude that there is a material misstatement of this other
information, we are required to report that fact.
We have nothing to report in this regard.
Net Assets, £212m FSM, £2.12
FSM £2.12m,
1%
PM £1.59m TfC £0.1m
Our opinions on other matters prescribed by the Companies Act 2006 are unmodified
In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the strategic report and the directors’ report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and
• the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
FINANCIAL – INDEPENDENT AUDITOR’S REPORT
INVESCO GLOBAL EQUITY INCOME TRUST PLC 55
Matters on which we are required to report under
the Companies Act 2006
In the light of the knowledge and understanding of the company
and its environment obtained in the course of the audit, we have
not identified material misstatements in the strategic report or
the directors’ report.
Matters on which we are required to report by
exception
We have nothing to report in respect of the following matters in
relation to which the Companies Act 2006 requires us to report
to you if, in our opinion:
• adequate accounting records have not been kept, or returns
adequate for our audit have not been received from branches
not visited by us; or
• the financial statements and the part of the directors’
remuneration report to be audited are not in agreement with
the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law
are not made; or
• we have not received all the information and explanations we
require for our audit.
Corporate governance statement
We have reviewed the directors’ statement in relation to going
concern, longer-term viability and that part of the Corporate
Governance Statement relating to the company’s compliance with
the provisions of the UK Corporate Governance Code specified
for our review by the Listing Rules.
Based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial
statements or our knowledge obtained during the audit:
• the directors’ statement with regards to the appropriateness
of adopting the going concern basis of accounting and any
material uncertainties identified set out on page 39;
• the directors’ explanation as to their assessment of the
company’s prospects, the period this assessment covers and
why the period is appropriate set out on page 29;
• the directors’ statement on whether they have a reasonable
expectation that the company will be able to continue in
operation and meets its liabilities set out on page 39;
• the directors’ statement on fair, balanced and understandable
set out on page 48;
• the board’s confirmation that it has carried out a robust
assessment of the emerging and principal risks set out on
pages 26 to 29;
• the section of the annual report that describes the review of
the effectiveness of risk management and internal control
systems set out on page 44; and
• the section describing the work of the audit committee set
out on page 43.
Responsibilities of directors
As explained more fully in the Statement of Directors’
Responsibilities set out on page 48, the directors are responsible
for the preparation of the financial statements and for being
satisfied that they give a true and fair view, and for such internal
control as the directors determine is necessary to enable the
preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are
responsible for assessing the company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless
the directors either intend to liquidate the company or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the
financial statements
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists.
Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken
on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. The extent to which our procedures
are capable of detecting irregularities, including fraud is detailed
below:
• We obtained an understanding of the legal and regulatory
frameworks applicable to the company and the industry in
which it operates. We identified areas of laws and regulations
that could reasonably be expected to have a material effect
on the financial statements from our sector experience and
through discussion with the directors and management. We
determined that the most significant laws and regulations
were United Kingdom Accounting Standards, including FRS
102 ‘The Financial Reporting Standard applicable in the UK
and Republic of Ireland’, the Companies Act 2006, the
Association of Investment Companies (AIC) Statement of
Recommended Practice (SORP) ‘Financial Statements of
Investment Trust Companies and Venture Capital Trusts’, the
AIC Code of Corporate Governance, sections 1158 to 1164
of the Corporation Tax Act 2010 and the Listing Rules of the
Financial Conduct Authority (the ‘FCA’);
• We enquired of the directors and management to obtain an
understanding of how the company is complying with those
legal and regulatory frameworks and whether there were any
instances of non-compliance with laws and regulations and
whether they had any knowledge of actual or suspected
fraud. We corroborated the results of our enquiries through
our review of the minutes of the company’s board and audit
committee meetings;
• We assessed the susceptibility of the company’s financial
statements to material misstatement, including how fraud
might occur, by evaluating management’s incentives and
opportunities for manipulation of the financial statements.
This included an evaluation of the risk of management
override of controls. Audit procedures performed by the
engagement team in connection with the risks identified
included:
o evaluation of the design and implementation of controls
that management has put in place to prevent and detect
fraud;
o testing journal entries, including manual journal entries
processed at the year-end for financial statements
preparation and journals with unusual account
combinations; and
o challenging the assumptions and judgements made by
management in its significant accounting estimates.
FINANCIAL – INDEPENDENT AUDITOR’S REPORT
56 INVESCO GLOBAL EQUITY INCOME TRUST PLC
• These audit procedures were designed to provide reasonable
assurance that the financial statements were free from fraud
or error. The risk of not detecting a material misstatement
due to fraud is higher than the risk of not detecting one
resulting from error and detecting irregularities that result
from fraud is inherently more difficult than detecting those
that result from error, as fraud may involve collusion,
deliberate concealment, forgery or intentional
misrepresentations. Also, the further removed non-
compliance with laws and regulations is from events and
transactions reflected in the financial statements, the less
likely we would become aware of it;
• The engagement partner’s assessment of the appropriateness
of the collective competence and capabilities of the
engagement team included consideration of the engagement
team’s:
o understanding of, and practical experience with, audit
engagements of a similar nature and complexity, through
appropriate training and participation;
o knowledge of the industry in which the company
operates; and
o understanding of the legal and regulatory frameworks
applicable to the company.
• We communicated relevant laws and regulations and potential
fraud risks to all engagement team members, including
internal specialists, and remained alert to any indications of
fraud or non-compliance with laws and regulations
throughout the audit.
A further description of our responsibilities for the audit of the
financial statements is located on the Financial Reporting
Council’s website at: www.frc.org.uk/auditorsresponsibilities. This
description forms part of our auditor’s report.
Other matters which we are required to address
We were appointed by the company on 4 October 2016 to audit
the financial statements for the year ended 31 May 2017 and
subsequent financial periods. Our total uninterrupted period of
engagement is 9 years, covering the years ended 31 May 2017
to 31 May 2025.
The non-audit services prohibited by the FRC’s Ethical Standard
were not provided to the company and we remain independent
of the company in conducting our audit.
Our audit opinion is consistent with the additional report to the
audit committee.
Use of our report
This report is made solely to the company’s members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies
Act 2006. Our audit work has been undertaken so that we might
state to the company’s members those matters we are required
to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company and the
company’s members as a body, for our audit work, for this report,
or for the opinions we have formed.
William Pointon
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
London
1 August 2025
FINANCIAL – INCOME STATEMENT
INVESCO GLOBAL EQUITY INCOME TRUST PLC 57
The accompanying accounting policies and notes are an integral part of these financial statements.The accompanying accounting policies and notes are an integral part of these financial statements.
Year ended 31 May 2025 Year ended 31 May 2024
Revenue Capital Total Revenue Capital Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Gains on investments held at fair value 9 – 20,482 20,482 – 23,634 23,634
(Losses)/gains on derivative instruments 10–––(10) 261 251
Losses on foreign exchange – (4) (4) – (68) (68)
Income 2 4,379 – 4,379 7,433 – 7,433
Investment management fees 3 (332) (775) (1,107) (340) (788) (1,128)
Other expenses 4 (563) 6 (557) (551) (702) (1,253)
Net return before finance costs and taxation 3,484 19,709 23,193 6,532 22,337 28,869
Finance costs 5 (50) (116) (166) (194) (453) (647)
Return before taxation 3,434 19,593 23,027 6,338 21,884 28,222
Tax 6 (294) – (294) (239) 59 (180)
Return after taxation for the financial year 3,140 19,593 22,733 6,099 21,943 28,042
Return per ordinary share (basic and diluted) 7
– Ordinary (formerly Global Equity Income) 5.01p 31.29p 36.30p 9.03p 54.72p 63.75p
– UK Equity
(1)
n/a n/a n/a 5.12p 9.89p 15.01p
– Balanced Risk Allocation
(1)
n/a n/a n/a 4.45p 8.72p 13.17p
– Managed Liquidity
(1)
n/a n/a n/a 17.07p 1.15p 18.22p
(1) This share class was closed on 7 May 2024, as such, only comparative figures are shown.
The total column of this statement represents the Company’s income statement prepared in accordance with UK Accounting Standards.
The return after taxation is the total comprehensive income and therefore no additional statement of other comprehensive income is
presented. The supplementary revenue and capital columns are presented for information purposes in accordance with the Statement
of Recommended Practice issued by the Association of Investment Companies. All items in the above statement derive from continuing
operations of the Company. No operations were acquired or discontinued in the current year.
Income Statement
The accompanying accounting policies and notes are an integral part of these financial statements.
Capital
Share redemption Special Capital Revenue
capital reserve reserve reserve reserve Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
At 31 May 2023 1,707 377 137,424 60,129 102 199,739
Cancellation of deferred shares – 233 (233) – – –
Shares bought back and held in treasury 14 – – (2,702) – – (2,702)
Share conversions (348) 116 232 – – –
Return after taxation per the income statement – – – 21,943 6,099 28,042
Dividends paid 8 – – (597) - (6,099) (6,696)
Costs associated with tender offer 14 – – (145) – – (145)
Tender offer in respect of the share
class reclassification 14 – – (20,683) – – (20,683)
Treasury shares cancellation (559) 559 – – – –
At 31 May 2024 800 1,285 113,296 82,072 102 197,555
Shares bought back and held in treasury 14 – – (4,270) – – (4,270)
Shares sold from treasury – – 4,110 – – 4,110
Return after taxation per the income statement – – – 19,593 3,140 22,733
Dividends paid 8 – – (4,603) – (3,242) (7,845)
At 31 May 2025 800 1,285 108,533 101,665 – 212,283
Statement of Changes in Equity
FINANCIAL – STATEMENT OF CHANGES IN EQUITY
58 INVESCO GLOBAL EQUITY INCOME TRUST PLC
FINANCIAL – BALANCE SHEET
INVESCO GLOBAL EQUITY INCOME TRUST PLC 59
The accompanying accounting policies and notes are an integral part of these financial statements.
At At
31 May 2025 31 May 2024
Notes £’000 £’000
Fixed assets
Investments held at fair value through
profit or loss 9 211,444 195,824
Current assets
Debtors 11 1,314 1,639
Cash and cash equivalents 2,618 1,859
3,932 3,498
Creditors: amounts falling due within one year
Other creditors 12 (443) (1,767)
Bank facility 13 (2,650) –
(3,093) (1,767)
Net current assets 839 1,731
Net assets 212,283 197,555
Capital and reserves
Share capital 14 800 800
Special reserve 15 108,533 113,296
Capital redemption reserve 15 1,285 1,285
Capital reserve 15 101,665 82,072
Revenue reserve 15 – 102
Shareholders’ funds 212,283 197,555
Net asset value per ordinary share 16 337.36p 313.30p
The financial statements were approved and authorised for issue by the Board of Directors on 1 August 2025.
Signed on behalf of the Board of Directors
Sue Inglis
Chair
Company No. 05916642
Balance Sheet
Year ended Year ended
31 May 2025 31 May 2024
Notes £’000 £’000
Cash flows from operating activities
Net return before finance costs and taxation 23,193 28,869
Tax paid on overseas income 6 (294) (180)
Purchase of investments (137,107) (177,227)
Sale of investments 141,822 212,682
Sale of futures – 190
Scrip dividends – (109)
Gains on investments 9 (20,482) (23,634)
Losses on derivatives – (251)
(Increase)/decrease in debtors (212) 954
Decrease in creditors (120) (12)
Net cash inflow from operating activities 6,800 41,282
Cash flows from financing activities
Interest paid on bank borrowings (176) (641)
Increase/(decrease) in bank facility
(1)
2,650 (9,650)
Shares bought back and held in treasury (4,270) (2,702)
Costs associated with tender offer – (145)
Tender offer in respect of the share class reclassification – (20,683)
Shares sold from treasury 3,600 –
Equity dividends paid 8 (7,845) (6,696)
Net cash outflow from financing activities (6,041) (40,517)
Net increase in cash and cash equivalents 759 765
Cash and cash equivalents at the start of the year 1,859 1,094
Cash and cash equivalents at the end of the year 2,618 1,859
Reconciliation of cash and cash equivalents to the Balance Sheet is as follows:
Cash held at custodian 618 559
Invesco Liquidity Funds plc – Sterling, money market fund 2,000 1,300
Cash and cash equivalents 2,618 1,859
Cash flow from operating activities includes:
Interest received 27 47
Dividends received 3,662 6,599
(1) Due to the nature of the bank facility allowing weekly marginal changes to the amount borrowed, rather than full repayment and new drawdown amount,
management judges it appropriate to show the net increase/(decrease) over the year rather than the gross repayments and drawdowns separately, as
defined in FRS 102 section 7.10A (b).
Cash Flow Statement
The accompanying accounting policies and notes are an integral part of these financial statements.
FINANCIAL – CASH FLOW STATEMENT
60 INVESCO GLOBAL EQUITY INCOME TRUST PLC
FINANCIAL – NOTES TO THE FINANCIAL STATEMENTS
INVESCO GLOBAL EQUITY INCOME TRUST PLC 61
1. Accounting Policies
Accounting policies describe the Company’s approach to recognising and measuring transactions during the year and the position
of the Company at the year end.
The principal accounting policies are set out below:
(a) Basis of Preparation
(i) Accounting Standards Applied
The financial statements have been prepared in accordance with applicable United Kingdom Accounting Standards,
including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’, and applicable law
(UK Generally Accepted Accounting Practice (‘UK GAAP’)) and with the Statement of Recommended Practice Financial
Statements of Investment Trust Companies and Venture Capital Trusts, updated by the Association of Investment
Companies (‘AIC’) in July 2022. The financial statements are issued on a going concern basis as disclosed on page 39.
The accounting policies applied to these financial statements are consistent with those applied for the preceding year.
(ii) Functional and Presentational Currency
The Company’s investments are made in several currencies. However, the financial statements are presented in sterling,
which is the Company’s functional currency. In arriving at this conclusion, the Directors considered that the Company’s
shares are listed and traded on the London Stock Exchange, the shareholder base is predominantly in the United Kingdom
and the Company pays dividends and expenses in sterling.
(iii) Transactions and Balances
Transactions in foreign currency, whether of a revenue or capital nature, are translated to sterling at the rates of exchange
ruling on the dates of such transactions. Foreign currency assets and liabilities are translated to sterling at the rates of
exchange ruling at the balance sheet date. Any gains or losses, whether realised or unrealised, are taken to the capital
reserve or to the revenue account, depending on whether the gain or loss is of a capital or revenue nature. All gains and
losses are recognised in the income statement.
(iv) Significant Accounting Estimates and Judgements
The preparation of the financial statements may require the Directors to make estimations where uncertainty exists. It also
requires the Directors to make judgements, estimates and assumptions in the process of applying the accounting policies.
There have been no significant judgements, estimates or assumptions for the current or preceding year.
(b) Financial Instruments
The Company has chosen to apply the provisions of sections 11 and 12 of FRS 102 in full in respect of the financial instruments,
which is explained below.
(i) Recognition of Financial Assets and Financial Liabilities
The Company recognises financial assets and financial liabilities when the Company becomes a party to the contractual
provisions of the instrument. The Company will offset financial assets and financial liabilities if the Company has a legally
enforceable right to set off the recognised amounts and interests and intends to settle on a net basis.
(ii) Derecognition of Financial Assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire or it
transfers the right to receive the contractual cash flows on the financial asset in a transaction in which substantially all the
risks and rewards of ownership of the financial asset are transferred. Any interest in the transferred financial asset that is
created or retained by the Company is recognised as an asset.
(iii) Derecognition of Financial Liabilities
The Company derecognises financial liabilities when its obligations are discharged, cancelled or expire.
(iv) Trade Date Accounting
Purchases and sales of financial assets are recognised on trade date, being the date on which the Company commits to
purchase or sell the assets.
(v) Classification and Measurement of Financial Assets and Financial Liabilities
Financial assets
The Company’s investments, including financial derivative instruments, are classified as held at fair value through profit
or loss.
Financial assets held at fair value through profit or loss are initially recognised at fair value, which is taken to be their cost,
with transaction costs expensed in the income statement, and are subsequently valued at fair value.
Notes to the Financial Statements
1. Accounting Policies (continued)
(b) Financial Instruments (continued)
(v) Classification and Measurement of Financial Assets and Financial Liabilities (continued)
Financial assets (continued)
Fair value for investments, including financial derivative instruments, that are actively traded in organised financial
markets is determined by reference to stock exchange quoted bid prices at the balance sheet date. For investments that
are not actively traded or where active stock exchange quoted bid prices are not available, fair value is determined by
reference to a variety of valuation techniques including broker quotes and price modelling. Where there is no active
market, unlisted/illiquid investments are valued by the Directors at fair value with regard to the International Private Equity
and Venture Capital Valuation Guidelines and on recommendations from the Manager’s pricing committee, both of which
use valuation techniques such as earnings multiples, recent arm’s length transactions and net assets.
Financial liabilities
Financial liabilities, excluding financial derivative instruments but including borrowings, are initially measured at fair value,
net of transaction costs and are subsequently measured at amortised cost using the effective interest method.
(c) Cash and Cash Equivalents
Cash and cash equivalents may comprise cash (including short-term deposits which are readily convertible to a known amount
of cash and are subject to an insignificant risk of change in value) as well as cash equivalents, including money market funds.
Investments are regarded as cash equivalents if they meet all of the following criteria: highly liquid investments held in the
Company’s base currency that are readily convertible to a known amount of cash, are subject to an insignificant risk of change
in value, have a maturity of less than three months at date of origination and provide a return no greater than the rate of a
three-month high quality government bond.
(d) Income
Dividend income from investments is recognised when the shareholders’ right to receive payment has been established, normally
the ex-dividend date. UK dividends are stated net of related tax credits. Interest income arising from cash is recognised on an
accruals basis and underwriting commission is recognised as earned. Special dividends are taken to revenue unless they arise
from a return of capital, when they are allocated to capital in the income statement. Income from fixed income securities is
recognised in the income statement using the effective interest method.
(e) Expenses and Finance Costs
All expenses are accounted for on an accruals basis. Expenses are charged to the income statement and shown in revenue
except where expenses are presented as capital items when a connection with the maintenance or enhancement of the value of
the investments held can be demonstrated and thus management fees and finance costs are charged to revenue and capital to
reflect the Directors’ expected long-term view of the nature of the investment returns from the portfolio.
Finance costs are accounted for on an accruals basis using the effective interest rate method.
The investment management fee and finance costs are allocated 70% to capital and 30% to revenue. This is in accordance with
the Board’s expected long-term split of returns, in the form of capital gains and income respectively, from the portfolio.
(f) Dividends
Dividends are accrued in the financial statements when there is an obligation to pay the dividends at the balance sheet date.
(g) Taxation
Tax expense represents the sum of tax currently payable and deferred tax. Any tax payable is based on taxable profit for the
period. Taxable profit differs from profit before tax as reported in the income statement because it excludes items of income or
expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.
The Company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the
balance sheet date.
For the Company, any allocation of tax relief to capital is based on the marginal basis, such that tax allowable capital expenses
are offset against taxable income.
Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet
date where transactions or events that result in an obligation to pay more tax or a right to pay less tax in the future have
occurred. Timing differences are differences between the Company’s taxable profits and its results as stated in the financial
statements. Deferred taxation assets are recognised where, in the opinion of the Directors, it is more likely than not that these
amounts will be realised in future periods.
A deferred tax asset has not been recognised in respect of surplus management expenses as the Company is unlikely to have
sufficient future taxable revenue to offset against these.
Investment trusts which have approval under the appropriate tax regulations are not liable for taxation on capital gains.
(h) Segmental Reporting
The Directors are of the opinion that the Company is engaged in a single segment of business being investment business.
FINANCIAL – NOTES TO THE FINANCIAL STATEMENTS
62 INVESCO GLOBAL EQUITY INCOME TRUST PLC
FINANCIAL – NOTES TO THE FINANCIAL STATEMENTS
INVESCO GLOBAL EQUITY INCOME TRUST PLC 63
2. Income
This note shows the income generated from the portfolio (investment assets) of the Company and income received from
any other source.
2025 2024
£’000 £’000
Income from investments:
UK dividends:
– ordinary dividends 844 3,881
– scrip dividends – 109
844 3,990
Overseas dividends
– ordinary dividends 3,227 3,027
– special dividends 282 265
Interest from Treasury bills – 103
3,509 7,385
Other income:
Deposit interest 26 47
Rebates of management fee – 1
Total income 4,379 7,433
Special dividends recognised as revenue for the year are as shown above. No special dividends have been recognised in capital
during the year (2024: £nil).
3. Investment Management Fees
This note shows the investment management fee due to the Manager which is calculated and paid quarterly.
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Investment management fee 332 775 1,107 340 788 1,128
332 775 1,107 340 788 1,128
Details of the Investment Management Agreement are given on page 39 in the Directors’ Report.
4. Other Expenses
The other expenses of the Company, including those paid to Directors and the auditor, are presented below; those paid to
the Directors and the auditor are separately identified.
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Directors’ remuneration
(1)(2)
176 – 176 166 10 176
Auditor’s fees
(3)
:
– for audit of the Company’s
annual financial statements 67 – 67 74 – 74
– non-audit fees – – – – 37 37
Other expenses
(4)
320 (14) 306 311 648 959
Custodian transaction charges – 8 8 – 7 7
563 (6) 557 551 702 1,253
(1) The Director's Remuneration Report provides further information on Directors’ fees. Included within other expenses is
£18,000 (2024: £16,000) of employer’s national insurance payable on Directors’ remuneration.
(2) As at 31 May 2025, the amounts outstanding on Directors’ fees and employer’s national insurance was £30,000 (2024:
£30,000).
(3) The auditor’s fees shown include out-of-pocket expenses, but exclude VAT, which is included in other administrative
expenses. (2024: An additional fee of £10,000 was paid to the auditor in respect of extra audit work performed in relation
to the share class reclassification; Grant Thornton UK LLP provided non-audit services related to work on the Company’s
restructuring, which amounted to £37,000).
(4) Includes fees for depositary, broker and registrar, and also marketing, printing, postage and listing costs. Capital costs
related to an over accrual in the prior year of costs related to the Company’s restructuring.
5. Finance Costs
Finance costs arise on any borrowing the Company has utilised in the year. The Company has a committed £40 million
revolving credit facility (see note 13 for further details).
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Commitment fees due on loan facility 18 41 59 – – –
Interest payable on borrowings 32 75 107 194 453 647
50 116 166 194 453 647
6. Tax
As an investment trust, the Company pays no tax on capital gains. However, the Company suffers tax on certain overseas
dividends that is irrecoverable and this note shows details of the tax charge. In addition, this note clarifies the basis for
the Company having no deferred tax asset or liability.
(a) Tax Charge
2025 2024
£’000 £’000
Overseas taxation 431 180
Corporation tax – prior year adjustment (137) –
294 180
The accounting policy for taxation is disclosed in note 1(g).
(b) Reconciliation of Tax Charge
2025 2024
£’000 £’000
Return before taxation 23,027 28,222
Theoretical tax at the current UK corporation tax rate of 25% (2024: 25%) 5,757 7,056
Effect of:
- Non-taxable UK dividends (211) (937)
- Foreign tax expensed (6) –
- Non taxable scrip dividends – (27)
- Non-taxable overseas dividends (755) (626)
- Non-taxable overseas special dividends (70) (66)
- Non-taxable gains on investments (5,121) (5,958)
- Non-taxable losses on foreign exchange 1 17
- Excess of allowable expenses over taxable income 407 382
- Disallowable expenses (2) 159
- Overseas taxation 431 180
– Corporation tax - prior year adjustment (137) –
Tax charge for the year 294 180
Given the Company’s status as an investment trust, and the intention to continue meeting the conditions required to retain such
status for the foreseeable future, the Company has not provided any UK corporation tax on any realised or unrealised capital
gains or losses arising on investments.
(c) Factors That May Affect Future Tax Charges
The Company has excess management expenses and loan relationship deficits of £21,830,000 (2024: £20,209,000) that are
available to offset future taxable revenue.
A deferred tax asset of £5,458,000 (2024: £5,052,000), measured at the standard corporation tax substantively enacted rate
of 25% (2024: 25%), has not been recognised in respect of these expenses since the Directors believe that there will be no
taxable profits in the future against which the deferred tax assets can be offset.
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INVESCO GLOBAL EQUITY INCOME TRUST PLC 65
7. Return per Ordinary Share
Return per share is the amount of profit (or loss) generated for the financial year divided by the weighted average number of
the shares in issue. The basic and diluted returns per share are identical as the ordinary shares of the Company are not dilutive.
Revenue, capital and total return per ordinary share is based on each of the returns after taxation shown by the income
statement and on the following numbers of shares, being the weighted average number of shares in issue throughout the year:
Average
number of shares
Share 2025 2024
Ordinary (formerly Global Equity Income) shares 62,623,090 28,258,528
UK Equity
(1)
n/a 62,061,213
Balanced Risk Allocation
(1)
n/a 3,757,960
Managed Liquidity
(1)
n/a 1,177,858
(1) As this share class was closed on 7 May 2024, the 2024 figures above are calculated to 3 May 2024, being the date of the final computed net asset
value of the share class.
Return per ordinary share is shown in the income statement on page 57.
8. Dividends
Dividends represent a return of income to shareholders for investing in the Company’s shares. These are determined by
the Directors and paid four times a year.
Dividends paid for each applicable share class, which represent distributions for the purpose of section 1159 of the Corporation
Tax Act 2010, follows:
2025 2024
Dividend Total Dividend Total
rate (pence) £’000 rate (pence) £’000
Ordinary (formerly Global Equity Income) shares
First interim 3.13 1,974 1.60 402
Second interim 3.13 1,970 1.60 402
Third interim 3.13 1,969 1.60 409
Fourth interim 3.13 1,932 2.55 651
12.52 7,845 7.35 1,864
Combined closed share classes
(1)
First interim n/a n/a 3.60 1,156
Second Interim n/a n/a 1.60 1,083
Third interim n/a n/a 1.60 1,067
Fourth interim n/a n/a 2.55 1,443
Special dividend n/a n/a 2.00 83
n/a n/a 11.35 4,832
Total paid in the year 7,845 6,696
(1) The combined closed share class dividends were those paid by UK Equity, Balanced Risk Allocation and Managed Liquidity shares along with a special
dividend on Balanced Risk Allocation shares prior to the Company restructure on 7 May 2024.
The Company’s dividend policy permits the payment of dividends from capital. An analysis of dividends paid in the year from
revenue and capital follows:
2025 2024
£'000 £'000
Dividends in respect of the year:
From revenue – current year 3,140 6,099
From revenue – brought forward 102 –
From revenue 3,242 6,099
From capital 4,603 597
7,845 6,696
9. Investments Held at Fair Value
The portfolio is made up of investments which are listed, i.e. traded on a regulated stock exchange, and a small proportion
of investments which are valued by the Directors as they are unlisted or not regularly traded. Gains and losses are either:
• realised, usually arising when investments are sold; or
• unrealised, being the difference from cost on the investments held at the year end.
(a) Analysis of Investments by Listing Status
2025 2024
£’000 £’000
UK listed investments 48,471 40,398
Overseas listed investments 162,973 155,426
211,444 195,824
(b) Analysis of investment gains
2025 2024
£’000 £’000
Opening valuation 195,824 207,389
Movements in year:
Purchases at cost 135,913 178,530
Sales proceeds (140,775) (213,729)
Gains on investments in the year 20,482 23,634
Closing valuation 211,444 195,824
Closing book cost 194,110 179,567
Closing investment holding gains 17,334 16,257
Closing valuation 211,444 195,824
The Company received £140,775,000 (2024: £213,729,000) from investments sold in the year. The book cost of these
investments when they were purchased was £121,370,000 (2024: £192,972,000) realising a profit of £19,405,000 (2024:
profit of £20,757,000). These investments have been revalued over time and until they were sold any unrealised profits/losses
were included in the fair value of the investments.
(c) Transaction Costs
Transaction costs were £95,000 (2024: £236,000) on purchases and £41,000 (2024: £103,000) on sales.
10. Derivative Instruments
Derivative instruments are contracts whose price is derived from the value of other securities or indices. The Balanced
Risk Allocation Portfolio used futures, which represented agreements to buy or sell commodities or financial instruments
at a pre-determined price in the future.
2025 2024
£’000 £’000
Opening derivative assets held at fair value through profit or loss – 125
Opening derivative liabilities held at fair value through profit or loss – (186)
Opening net derivative liabilities held at fair value as shown in balance sheet – (61)
Closing derivative assets held at fair value through profit or loss – –
Closing derivative liabilities held at fair value through profit or loss – –
Closing net derivative liabilities held at fair value shown in balance sheet – –
Movement in derivative holding liabilities – 61
Net realised gains on derivative instruments – 200
Net capital gains on derivative instruments as shown in the income statement – 261
Net expense arising on derivatives – (10)
Total gains on derivative instruments – 251
The derivative assets/(liabilities) shown in the opening balance for the year to 31 May 2024 are the unrealised gains/(losses)
arising from the revaluation to fair value of futures contracts held in the Balanced Risk Allocation Portfolio. Following the
Company restructure in May 2024 there are no derivative positions held.
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INVESCO GLOBAL EQUITY INCOME TRUST PLC 67
11. Debtors
Debtors are amounts due to the Company, such as monies due from brokers for investments sold and income which has
been earned (accrued) but not yet received.
2025 2024
£’000 £’000
Amounts due from brokers – 1,047
Share reissues from treasury awaiting settlement 510 –
Tax recoverable 353 256
Prepayments and accrued income 451 336
1,314 1,639
12. Other Creditors
Creditors are amounts owed by the Company and include amounts due to brokers for the purchase of investments and
amounts owed to suppliers, such as the Manager and auditor.
2025 2024
£’000 £’000
Tax payable – 137
Amounts due to brokers – 1,194
Accruals 443 436
443 1,767
Interest payable on the bank facility is included within the amounts outstanding on the bank facility as shown in the balance sheet.
13. Bank Facility and Overdraft
At the year end the Company had a £40 million (2024: £40 million) committed 364 day multicurrency revolving credit facility,
which is due for renewal on 22 April 2026 (2024: 23 April 2025). In addition, an overdraft facility for the purpose of short-term
settlement is also available; however, this was unutilised at the year end (2024: unutilised). Both facilities are with The Bank of
New York Mellon. The interest payable on the credit facility is based on the adjusted reference rate (principally SONIA, SOFR and
€STR respectively in respect of loans drawn in GBP, USD and Euro) plus a margin for amounts drawn.
Under the bank facility’s covenants, the Company’s total indebtedness must not exceed 30% of total assets and the total assets
must not be less than £100 million (2024: £100 million). The Company was in compliance with the covenants throughout the
year and at the year end.
At the year end, the bank facility drawn down was £2,650,000 (2024: £nil), and the interest payable on the bank facility was
£nil (2024: £nil).
14. Share Capital
Share capital represents the total number of shares in issue, including treasury shares.
All shares have a nominal value of 1 pence.
2025 2024
Number £’000 Number £’000
Allotted, called-up and fully paid:
Ordinary shares of 1p each 62,924,182 629 63,056,464 631
Treasury shares of 1p each 17,062,404 171 16,930,122 169
79,986,586 800 79,986,586 800
(a) Movements in Share Capital During the Year
Issued and fully paid:
Total
share
capital
Ordinary Shares (number)
At 31 May 2024 63,056,464
Shares bought back into treasury (1,342,282)
Shares sold from treasury 1,210,000
At 31 May 2025 62,924,182
14. Share Capital (continued)
(a) Movements in Share Capital during the Year
(continued)
Treasury shares (number)
At 31 May 2024 16,930,122
Shares bought back into treasury 1,342,282
Shares sold from treasury (1,210,000)
At 31 May 2025 17,062,404
Total
Share
Capital
Ordinary shares of 1 pence each (£’000)
At 31 May 2024 631
Shares bought back into treasury (14)
Shares sold from treasury 12
At 31 May 2025 629
Treasury shares of 1 pence each (£’000)
At 31 May 2024 169
Shares bought back into treasury 14
Shares sold from treasury (12)
At 31 May 2025 171
Total share capital (£’000)
Ordinary share capital 629
Treasury share capital 171
At 31 May 2025 800
Average buyback price 316.01p
Average sold price 340.70p
The total cost of share buy-backs was £4,270,000 (2024: £2,702,000). The total proceeds from shares that were sold from
treasury during the year was £4,110,000 (2024: nil).
(b) Movements in Share Capital After the Year End
Since the year end the Company has sold from treasury 3,610,000 ordinary shares. As at the date of this report the Company
has 66,534,182 ordinary shares in issue and holds 13,452,404 ordinary shares in treasury.
(c) Voting Rights
Rights attaching to the shares are described in the Directors’ Report on page 40.
15. Reserves
This note explains the different reserves attributable to shareholders. The aggregate of the reserves and share capital (see
previous note) make up total shareholders’ funds.
The special reserve arose from the cancellation of the share premium account, in January 2007, and is available as distributable
profits to be used for all purposes under the Companies Act 2006, including buy back of shares and payment of dividends.
The capital redemption reserve arises from the nominal value of shares bought back and cancelled; this and the share premium
are non-distributable.
Capital investment gains and losses are shown in note 9(b), and form part of the capital reserve. The revenue reserve shows the
net revenue retained after payments of any dividends. The capital and revenue reserves are distributable.
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INVESCO GLOBAL EQUITY INCOME TRUST PLC 69
16. Net Asset Value per Ordinary Share
The Company’s total net assets (total assets less total liabilities) are often termed shareholders’ funds and are converted
into net asset value per ordinary share by dividing by the number of shares in issue as at the reporting date.
The net asset value per share and the net assets attributable at the year end were as follows:
2025 2024
Net asset Net asset
value per Net assets value per Net assets
share attributable share attributable
pence £’000 pence £’000
Ordinary shares 337.36 212,283 313.30 197,555
Net asset value per share is based on net assets at the year end and on the number of shares in issue (excluding treasury shares)
at the year end.
17. Financial Instruments
This note summarises the risks deriving from the financial instruments that comprise the Company’s assets and liabilities.
At 31 May 2025 the Company’s financial instruments comprised the following:
• investments in equities and liquidity funds which are held in accordance with the Company’s investment objectives; and
• short-term debtors, creditors and cash arising directly from operations.
The financial instruments held by the Company are shown on pages 19 and 20.
The accounting policies in note 1 include criteria for the recognition and the basis of measurement applied for these financial
instruments. Note 1 also includes the basis on which income and expenses arising from financial assets and liabilities are
recognised and measured.
The Company’s principal risks and uncertainties are outlined in the Strategic Report on pages 26 to 29. This note expands on
risk areas in relation to the Company’s financial instruments. The portfolio is managed in accordance with the Company’s
investment objective and policies, which are set out on page 24. The management process is subject to risk controls, which the
Audit Committee reviews on behalf of the Board, as described on page 44.
The principal risks that an investment company faces in its portfolio management activities are set out below:
Market risk – arising from fluctuations in the fair value or future cash flows of a financial instrument because of changes in
market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk:
• Currency risk – arising from fluctuations in the fair value or future cash flows of a financial instrument because of changes
in foreign exchange rates;
• Interest rate risk – arising from fluctuations in the fair value or future cash flows of a financial instrument because of
changes in market interest rates; and
• Other price risk – arising from fluctuations in the fair value or future cash flows of a financial instrument for reasons other than
changes in foreign exchange rates or market interest rates, whether those changes are caused by factors specific to the
individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.
Liquidity risk – arising from any difficulty in meeting obligations associated with financial liabilities.
Credit risk incorporating counterparty risk – arising from financial loss for a company where the other party to a financial
instrument fails to discharge an obligation.
Risk Management Policies and Procedures
As an investment trust the Company invests in equities and other investments for the long-term in accordance with its
investment policies so as to meet its investment objectives. In pursuing its objectives, the Company is exposed to a variety of
risks that could result in a reduction in the Company’s net assets or a reduction of the profits available for dividends. The risks
applicable to the Company and the Directors’ policies for managing these risks follow. These have not changed from those
applying in the previous year.
The Directors have delegated to the Manager the responsibility for the day-to-day investment activities of the Company as more
fully described in the Directors’ Report.
The main risk that the Company faces arising from its financial instruments is market risk – this risk is reviewed in detail below.
Since the Company mainly invests in quoted investments, liquidity risk and credit risk are significantly mitigated.
17.1 Market Risk
Market risk arises from changes in the fair value of future cash flows of a financial instrument because of movements in
market prices. Market risk comprises three types of risk: currency risk (17.1.1), interest rate risk (17.1.2) and other price
risk (17.1.3).
17. Financial Instruments (continued)
17.1 Market Risk (continued)
The Company’s Portfolio Managers assess the Company’s exposure when making each investment decision, and monitors
the overall level of market risk on the whole of the investment portfolio on an ongoing basis. The Board meets at least
quarterly to assess risk and review investment performance. Borrowings can be used, which will increase the Company’s
exposure to market risk and volatility. The borrowing limit is 20% of net assets.
17.1.1 Currency Risk
The majority of the Company consists of assets, liabilities and income denominated in currencies other than
sterling. As a result, movements in exchange rates will affect the sterling value of those items.
Management of the currency risk
The Portfolio Managers monitor the Company’s exposure to foreign currencies on a daily basis and report to the
Board on a regular basis. Forward foreign currency contracts can be used to limit the Company’s exposure to
anticipated future changes in exchange rates and to achieve portfolio characteristics that assist the Company in
meeting its investment objectives in line with its investment policies. All contracts are limited to currencies and
amounts commensurate with the exposure to those currencies. No such contracts were in place at the current or
preceding year end. Income denominated in foreign currencies is converted to sterling on receipt. The Company
does not use financial instruments to mitigate the currency exposure in the period between the time that income
is accrued and its receipt.
Foreign currency exposure
The fair values of the Company’s monetary items that have currency exposure at 31 May are shown below. Where
the Company’s investments (which are not monetary items) are priced in a foreign currency they have been
included separately in the analysis so as to show the overall level of exposure.
Year ended 31 May 2025
Debtors Investments
(due from Foreign at fair value
brokers, Creditors currency through
prepayments, (due to exposure profit or
accrued Cash brokers on net loss Total net
income and cash and monetary that are foreign
and tax) equivalents accruals) items equities currency
Currency £’000 £’000 £’000 £’000 £’000 £’000
Australian dollar – 4 – 4 – 4
Canadian dollar 1 4 – 5 11,489 11,494
Danish krone 30 – – 30 6,447 6,477
Euro 142 45 – 187 26,659 26,846
Hong Kong dollar 158 – – 158 7,903 8,061
Japanese yen 38 5 – 43 3,682 3,725
Norwegian krone 6 – – 6 5,009 5,015
Swiss franc 208 – – 208 3,534 3,742
Taiwan dollar 7 – – 7 5,606 5,613
US dollar 98 8 – 106 101,272 101,378
688 66 – 754 171,601 172,355
Year ended 31 May 2024
Australian dollar – 4 – 4 – 4
Canadian dollar – 5 – 5 2,671 2,676
Danish krone 23 – (8) 15 4,804 4,819
Euro 120 72 (161) 31 37,488 37,519
Hong Kong dollar 121 – – 121 6,115 6,236
Japanese yen – 5 – 5 – 5
Norwegian krone 17 – – 17 4,815 4,832
South Korean won – – – – 1,791 1,791
Swiss franc 159 – – 159 4,375 4,534
Taiwan dollar 1 – – 1 1,890 1,891
US dollar 1,121 1 (753) 369 97,332 97,701
1,562 87 (922) 727 161,281 162,008
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INVESCO GLOBAL EQUITY INCOME TRUST PLC 71
Foreign currency sensitivity
The preceding exposure analysis is based on the Company’s monetary foreign currency financial instruments held
at each balance sheet date and takes account of forward foreign exchange contracts, if used, that offset the
effects of changes in currency exchange rates.
The effect of strengthening or weakening of sterling against other currencies to which the Company is exposed is
calculated by reference to the volatility of exchange rates during the year using the standard deviation of currency
fluctuations against the mean, giving the following exchange rate fluctuations:
2025 2024
£/Australian dollar +/–2.9 +/–1.3%
£/Canadian dollar +/–2.0 +/–1.2%
£/Danish krone +/–1.0 +/–0.7%
£/Euro +/–1.1 +/–0.7%
£/Hong Kong dollar +/–2.4 +/–1.6%
£/Japanese yen +/–2.5 +/–2.9%
£/Norwegian krone +/–1.6 +/–1.7%
£/South Korean won n/a +/–1.9%
£/Swedish krona +/–2.6 +/–2.1%
£/Swiss franc +/–1.5 +/–1.8%
£/Taiwan dollar +/–1.9 +/–1.5%
£/US dollar +/–2.4 +/–1.6%
The tables that follow illustrate the exchange rate sensitivity of revenue and capital returns arising from the
Company’s financial non-sterling assets and liabilities for the year using the exchange rate fluctuations shown above.
If sterling had strengthened against other currencies by the exchange rate fluctuations shown in the table above,
this would have had the following after tax effect:
2025 2024
Revenue Capital Total Revenue Capital Total
return return return return return return
£’000 £’000 £’000 £’000 £’000 £’000
Canadian dollar (1) (230) (231) – (32) (32)
Danish krone (2) (64) (66) – (34) (34)
Euro (8) (294) (302) (6) (262) (268)
Hong Kong dollar (5) (190) (195) (3) (98) (101)
Japanese yen (1) (92) (93) – – –
Norwegian krone (1) (80) (81) (4) (82) (86)
South Korean won – – – (1) (34) (35)
Swiss franc (3) (53) (56) (3) (79) (82)
Taiwan dollar (1) (107) (108) – (28) (28)
US dollar (45) (2,431) (2,476) (12) (1,562) (1,574)
Total return (67) (3,541) (3,608) (29) (2,211) (2,240)
Net assets (67) (3,541) (3,608) (29) (2,211) (2,240)
If sterling had weakened by the same amounts, the effect would have been the converse.
17.1.2 Interest Rate Risk
Interest rate movements may affect:
• the fair value of the investments in fixed interest rate securities;
• the level of income receivable on cash deposits; and
• the interest payable on variable rate borrowings.
Management of interest rate risk
The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken
into account as part of the portfolio management and borrowings processes of the Portfolio Managers. The Board
reviews on a regular basis the investment portfolio and borrowings. This encompasses the valuation of
fixed-interest and floating rate securities and gearing levels.
When the Company has cash balances, they are held in variable rate bank accounts yielding rates of interest
dependent on the base rate of the custodian or deposit taker. The Company has a £40 million (2024: £40 million),
364 day multicurrency revolving credit facility which is due for renewal on 22 April 2026. The Company uses the
facility when required at levels approved and monitored by the Board.
17. Financial Instruments (continued)
17.1 Market Risk (continued)
17.1.2 Interest Rate Risk (continued)
Interest rate exposure
The Company also has available an uncommitted overdraft facility for settlement purposes and interest is
dependent on the base rate determined by the custodian.
At 31 May the exposure of financial assets and financial liabilities to interest rate risk is shown by reference to:
• floating interest rates (giving cash flow interest rate risk) – when the interest rate is due to be reset; and
• fixed interest rates (giving fair value interest rate risk) – when the financial instrument is due for repayment.
The following table sets out the financial assets and financial liabilities exposure at the year end:
Company
Total
2025 £’000
Exposure to floating interest rates:
Cash and short-term deposits 2,618
Bank facility (2,650)
Net exposure to interest rates (32)
Company
Total
2024 £’000
Exposure to floating interest rates:
Cash and short-term deposits 1,859
Net exposure to interest rates 1,859
Interest rate sensitivity
At the maximum possible borrowing level of £40 million (2024: £40 million), the maximum effect over one year
of a 3.5% movement in interest rates would be a £1,400,000 (2024: maximum effect over one year of a 3.5%
movement: £1,400,000) movement in the Company’s income and net assets.
The effect of a 3.5% movement in the interest rates on investments held at fair value through profit and loss would
result in a £nil (2024: 3.5% movement: £nil) maximum movement in the Company’s income statement and net
assets.
The above exposure and sensitivity analysis are not representative of the year as a whole, since the level of
exposure changes frequently throughout the year.
Other price risks (i.e. changes in market prices other than those arising from interest rate risk or currency risk)
may affect the value of the equity investments, but it is the role of the Portfolio Managers to manage the portfolio
to achieve the best return.
17.1.3 Other Price Risk
Management of other price risk
The Directors monitor the market price risks inherent in the investment portfolio by meeting regularly to
review performance.
The Company’s investment portfolio is the product of the Manager’s investment processes and the application of
the portfolio investment policy. The value will move according to the performance of the shares held within the
portfolio. However, the portfolio does not replicate its benchmark or the markets in which it is invested, so the
performance may not correlate.
Notwithstanding the issue of correlation, if the fixed asset value of the portfolio moved by 10% at the balance sheet
date, the profit after tax and net assets for the year would increase/decrease by the following amounts:
2025 2024
£,000 £,000
Profit after tax increase/decrease due to rise/fall of 10% 21,144 19,582
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INVESCO GLOBAL EQUITY INCOME TRUST PLC 73
17.2 Liquidity Risk
Management of liquidity risk
Liquidity risk is mitigated by the investments held by the Company’s portfolio being diversified and the majority being
readily realisable securities which can be sold to meet funding commitments. If required, the Company’s borrowing
facilities provide additional long-term and short-term flexibility.
The Directors’ policy is that in normal market conditions short-term borrowings be used to manage short-term liabilities
and working capital requirements rather than realising investments.
Liquidity risk
The contractual maturities of financial liabilities at the year end, based on the earliest date on which payment can be
required, are as follows:
2025 2024
3 months More than 3 months More than
or less 3 months or less 3 months
£’000 £’000 £’000 £’000
Bank facility
(1)
2,650 – – –
Amount due to brokers – – 1,194 –
Other creditors and accruals 443 – 573 –
3,093 – 1,767 –
(1) Interest due on the bank facility at the year end was £nil (2024: £nil).
17.3 Credit Risk
Credit risk is that the failure of the counterparty in a transaction to discharge its obligations under that transaction could
result in the Company suffering a loss.
This risk is managed as follows:
• investment transactions are carried out with a selection of brokers, approved by the Manager and settled on a delivery
versus payment basis. Brokers’ credit ratings are regularly reviewed by the Manager, so as to minimise the risk of
default to the Company;
• the risk of counterparty exposure due to failed trades causing a loss to the Company is mitigated by the daily review
of failed trade reports and the use of daily stock and cash reconciliations. Only approved counterparties are used;
• the Company’s ability to operate in the short-term may be adversely affected if the Company’s Manager, other
outsource service providers, or their delegates suffer insolvency or other financial difficulties. The Board reviews
annual controls reports from major service providers; and
• cash balances are limited to a maximum of 4% of NAV, across all deposit takers. Only deposit takers approved by the
Manager are used.
The following table sets out the maximum credit risk exposure at the year end:
2025 2024
£’000 £’000
Cash and short-term deposits 2,618 1,859
2,618 1,859
18. Fair Value of Financial Assets and Financial Liabilities
‘Fair value’ in accounting terms is the amount at which an asset can be bought or sold in a transaction between willing
parties, i.e. a market-based, an independent measure of value. This note sets out the fair value hierarchy comprising three
‘levels’ and the aggregate amount of investments in each level.
The financial assets and financial liabilities are either carried in the balance sheet at their fair value (investments and derivative
instruments), or the balance sheet amount is a reasonable approximation of fair value.
FRS 102 as amended for fair value hierarchy disclosures sets out three fair value levels. These are:
Level 1 – fair value based on quoted prices in active markets for identical assets.
Level 2 – fair values based on valuation techniques using observable inputs other than quoted prices within Level 1.
Level 3 – fair values based on valuation techniques using inputs that are not based on observable market data.
Categorisation within the hierarchy is determined on the basis of the lowest level input that is significant to the fair value
measurement of each relevant asset/liability.
The valuation techniques used by the Company are explained in the accounting policies note. All of the Company’s non-zero
valued investments are quoted equity investments which are deemed to be Level 1.
2025 2024
£’000 £’000
Financial assets designated at fair value through profit or loss:
Level 1 211,444 195,824
Level 2 ––
Level 3 ––
Total for financial assets 211,444 195,824
19. Capital Management
This note is designed to set out the Company’s objectives, policies and processes for managing its capital. The capital is
funded from monies invested in the Company by shareholders (both initial investment and any retained amounts) and any
borrowings by the Company.
The Company’s total capital employed at 31 May 2025 was £214,933,000 (2024: £197,555,000) comprising borrowings of
£2,650,000 (2024: £nil) and equity share capital and other reserves of £212,283,000 (2025: £197,555,000).
The Company’s total capital employed is managed to achieve the Company’s investment objective and policy as set out on
page 24, including that borrowings may be used to raise equity exposure up to a maximum of 20% of net assets. At the balance
sheet date, maximum gross gearing was 1.2% (2024: nil%). The Company’s policies and processes for managing capital are
unchanged from the preceding year.
The main risks to the Company’s investments are shown in the Directors’ Report under the ‘Principal Risks and Uncertainties’
section on pages 26 to 29. These also explain that the Company has borrowing facilities which can be used in accordance with
the Company’s investment objective and policies and that this will amplify the effect on equity of changes in the value of the
portfolio.
The Board can also manage the capital structure directly since it has taken the powers, which it will be seeking to renew at the
2025 AGM, to issue and buy back shares and it also determines dividend payments. Details of the Company's liquidity policy can
be found under the Discount/Premium section on page 25.
The Company is subject to externally imposed capital requirements with respect to the obligation and ability to pay dividends by
the Corporation Tax Act 2010 and by the Companies Act 2006, respectively, and, with respect to the availability of the overdraft
facility, by the terms imposed by the lender. The Board regularly monitors, and has complied with, the externally imposed capital
requirements. This is unchanged from the prior year.
Borrowings can comprise any drawings on the credit and/or overdraft facilities, details of which are given in note 13.
FINANCIAL – NOTES TO THE FINANCIAL STATEMENTS
74 INVESCO GLOBAL EQUITY INCOME TRUST PLC
FINANCIAL – NOTES TO THE FINANCIAL STATEMENTS
INVESCO GLOBAL EQUITY INCOME TRUST PLC 75
20. Contingencies, Guarantees and Financial Commitments
Liabilities the Company is committed to honour but which are dependent on a future circumstance or events occurring
would be disclosed in this note if any existed.
There were no contingencies, guarantees or financial commitments of the Company at the year end (2024: £nil).
21. Analysis of Changes in Net Debt
This note summarises the changes in net debt from the start of the year to the end of the year.
At At
1 June Cash 31 May
2024 flows 2025
£’000 £’000 £’000
Cash and cash equivalents 1,859 759 2,618
Bank facility – (2,650) (2,650)
Total 1,859 (1,891) (32)
22. Related Party Transactions and Transactions with the Manager
A related party is a company or individual who has direct or indirect control or who has significant influence over the
Company. Under accounting standards, the Manager is not a related party.
Under UK GAAP, the Company has identified the Directors as related parties. The Directors’ remuneration and interests have
been disclosed on pages 45 and 46 with additional disclosure in note 4. No other related parties have been identified.
Details of the Manager’s services and fees are disclosed in the Director’s Report on page 39 and note 3.
23. Post Balance Sheet Events
Any significant events that occurred after the Company’s financial year end but before the signing of the balance sheet
will be shown here.
There are no significant events after the end of the reporting period requiring disclosure.
IGET A disciplined approach to
tactical gearing
Additional Information
Shareholder Information .......................................................77
Advisers and Principal Service Providers ...............................78
Glossary of Terms and Alternative Performance Measures .....79
Alternative Investment Fund Managers Directive
Disclosures ........................................................................82
76 INVESCO GLOBAL EQUITY INCOME TRUST PLC
INVESCO GLOBAL EQUITY INCOME TRUST PLC 77
ADDITIONAL INFORMATION – SHAREHOLDER INFORMATION
Shareholder Information
The shares of the Company are traded on the London Stock
Exchange.
Shareholder Communications
To receive updates from the Company and the
Portfolio Managers please sign up for updates at:
www.digitalservices.invesco.com/uk/en/investment-trusts-
subscriptions.
NAV Publication
The net asset value (‘NAV’) of the Company’s shares is calculated
by the Manager on a daily basis and notified to the Stock
Exchange on the next business day.
Share Price Listings
The price of your shares can be found by accessing the
Manager’s website (see below). In addition, share price
information can be found on a number of websites, including
www.londonstockexchange.com, using the IGET ticker code.
Manager’s Website
Information relating to the Company can be found
on the Manager’s website, www.invesco.com/uk/en/investment-
trusts/invesco-global-equity-income-trust.html.
The content 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 Annual Financial Report.
The Association of Investment Companies
The Company is a member of the Association of
Investment Companies.
Contact details are as follows:
020 7282 5555.
Email: enquiries@theaic.co.uk
Website: www.theaic.co.uk
General Data Protection Regulation
(‘GDPR’)
GDPR is intended to improve controls over personal data and how
it is used. The Company’s privacy notice, which can be found on
the Manager’s website or can be requested from the Company
Secretary at the correspondence address shown on page 78, sets
out what personal data is collected and how and why it is used.
Financial Calendar
The Company publishes information according to the following
calendar:
First interim dividends announced 10 July 2025
Annual financial results July 2025
Second interim dividends announced October 2025
AGM 21 October 2025
Third interim dividends announced December 2025
Half yearly financial results February 2026
Fourth interim dividends announced April 2026
Year end 31 May 2026
Location of Annual General Meetings
The Annual General Meeting will be held at 9.30am on
21 October 2025 at 3rd Floor, 60 London Wall, London,
EC2M 5TQ.
Finsbury
Circus Gardens
A501
London Wall
Moo
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Blomfield St
London Wall
Moorfield
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South Pl
Eldon St
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Great Winchester St
Throgmorton Ave
Copthall Ave
Liverpool Street
Moorgate
Invesco
60 London Wall
Old Broad St
78 INVESCO GLOBAL EQUITY INCOME TRUST PLC
ADDITIONAL INFORMATION – ADVISERS AND PRINCIPAL SERVICE PROVIDERS
Advisers and Principal Service Providers
Avoid investment fraud
1 Reject cold calls
If you’ve received unsolicited contact about
an investment opportunity, chances are
it’s a high risk investment or a scam. You
should treat the call with extreme caution.
The safest thing to do is to hang up.
2 Check the FCA Warning List
The FCA Warning List is a list of firms and
individuals we know are operating without
our authorisation.
3 Get impartial advice
Think about getting impartial financial
advice before you hand over any money.
Seek advice from someone unconnected to
the firm that has approached you.
Report a Scam
If you suspect that you have been
approached by fraudsters please tell the
FCA using the reporting form at
www.fca.org.uk/consumers/report-
scam-unauthorised-firm. You can also call
the FCA Consumer Helpline on
0800 111 6768
If you have lost money to investment fraud,
you should report it to Action Fraud on
0300 123 2040 or online at
www.actionfraud.police.uk
Find out more at
www.fca.org.uk/scamsmart
Investment scams are
designed to look like
genuine investments
Spot the warning signs
Have you been:
• contacted out of the blue
• promised tempting returns
and told the investment is safe
• called repeatedly, or
• told the offer is only available
for a limited time?
If so, you might have been
contacted by fraudsters.
Remember: if it sounds too good to be true,
it probably is!
Be ScamSmart
Registered Office
Perpetual Park
Perpetual Park Drive
Henley-on-Thames
Oxfordshire
RG9 1HH
Company Number
Registered in England and Wales Number 05916642
Alternative Investment Fund Manager
(‘Manager’)
Invesco Fund Managers Limited
Company Secretary
Invesco Asset Management Limited
Company Secretarial contact: James Poole
020 7543 3559
email: James.Poole@invesco.com
Correspondence Address
3rd Floor, 60 London Wall,
London, EC2M 5TQ
020 3753 1000
email: investmenttrusts@invesco.com
Auditor
Grant Thornton UK LLP
8 Finsbury Circus
London EC2M 7EA
Corporate Broker
Cavendish Capital Markets Limited
1 Bartholomew Close
London EC1A 7BL
Depositary and Custodian
The Bank of New York Mellon (International) Limited
160 Queen Victoria Street
London EC4V 4LA
Invesco Client Services
Invesco’s Client Services Team is available from 8.30am to 6.00pm
Monday to Friday (excluding bank holidays in England & Wales).
Please note no investment advice can be given.
0800 085 8677
www.invesco.com/uk/en/investment-trusts.html
Registrar
MUFG Corporate Markets (formerly known as Link Group)
Central Square
29 Wellington Street
Leeds LS1 4DL
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:
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
( 0371 664 0445. Calls are charged at the standard
geographic rate and will vary by provider. Calls from outside the
UK will be charged at the applicable international rate. Lines are
open 9.00am to 5.30pm Monday to Friday (excluding bank
holidays in England and Wales).
Shareholders holding paper share certificates can also access
their holding details via the Investor Centre app or the website at
www.uk.investorcentre.mpms.mufg.com.
MUFG Corporate Markets is the business name of MUFG
Corporate Markets (UK) Limited, a division of MUFG Pension &
Market Services.
Alternatively, you can also buy and sell shares yourself through
a wide variety of ‘execution-only’ investment platforms – where
you make the investment decisions and your shares are held
electronically in an account on your behalf. These tend to be also
mean you do not need to worry about losing your certificate.
Most investment platforms allow you to manage your investment
company holdings online, as well as access to a wide range of
investment options.
Platforms generally charge fees for holding and trading shares.
You can find a list of the major platforms at
www.invesco.com/uk/en/investment-trusts/invesco-insights/how-
to-invest-in-investment-trusts.html.
INVESCO GLOBAL EQUITY INCOME TRUST PLC 79
ADDITIONAL INFORMATION – GLOSSARY OF TERMS AND ALTERNATIVE PERFORMANCE MEASURES
Alternative Performance Measure (‘APM’)
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 years ended 31 May 2025 and
2024. The APMs listed here are widely used in reporting within the investment company sector and consequently aid comparability.
(Discount)/Premium (‘APM’)
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. The (discount)/premium 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.
Page 2025 2024
Share price 5 a 342.00p 286.00p
Net asset value per share 59 b 337.36p 313.30p
Premium/(discount) c = (a-b)/b 1.4% (8.7)%
(1) This share class was closed on 7 May 2024.
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 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 below.
There are several methods of calculating gearing and the following has been used in this report:
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.
2025 2024
Page £’000 £’000
Bank facility 59 2,650 –
Gross borrowings a 2,650 –
Net asset value 59 b 212,283 197,555
Gross gearing c = a/b 1.2% nil
Net Gearing or Net Cash (‘APM’)
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.
2025 2024
Page £’000 £’000
Bank facility 59 a 2,650 –
Less cash and cash equivalents 59 b (2,618) (1,859)
Net borrowings c=a+b 32 (1,859)
Net asset value 59 d 212,283 197,555
Net gearing/(cash) e = c/d 0.0% (0.9)%
Glossary of Terms and Alternative
Performance Measures
80 INVESCO GLOBAL EQUITY INCOME TRUST PLC
ADDITIONAL INFORMATION – GLOSSARY OF TERMS AND ALTERNATIVE PERFORMANCE MEASURES
Leverage
Leverage, for the purposes of the Alternative Investment Fund Managers Directive (‘AIFMD’), is not synonymous with gearing as defined
above. In addition to borrowings, it encompasses anything that increases the Company’s exposure, including foreign currency and
exposure gained through derivatives. Leverage expresses the Company’s exposure as a ratio of the Company’s net asset value.
Accordingly, if a Company’s exposure was equal to its net assets it would have leverage of 100%. Two methods of calculating such
exposure are set out in the AIFMD, gross and commitment. Under the gross method, exposure represents the aggregate of all the
Company’s exposures other than cash balances held in base currency and without any offsetting. The commitment method takes into
account hedging and other netting arrangements designed to limit risk, offsetting them against the underlying exposure.
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.
Ongoing Charges Ratio (‘APM’)
The ongoing administrative costs of operating the Company are encapsulated in the ongoing charges ratio, which is calculated in
accordance with guidance issued by the AIC. The calculation incorporates charges allocated to capital in the financial statements as
well as those allocated to revenue, but excludes non-recurring costs, transaction costs of investments, finance costs, taxation, and the
costs of buying back or issuing shares. The ongoing charges ratio is the aggregate of these costs expressed as a percentage of the
daily average net asset value reported in the year.
2025 2024
Total Total
Page £’000 £’000
Investment management fee 63 (note 3) 1,107 1,128
Other expenses 63 (note 4) 557 1,253
Less: costs in relation to the Company’s 2024 restructuring,
custody dealing charges
and one off legal costs (67) (702)
Total recurring expenses a 1,597 1,679
Average daily net assets value b 206,017 204,594
Ongoing charges c = a/b 0.78% 0.82%
Capital Return
Reflects the return on NAV, from the increase and decrease in the value of investments, but excluding any dividends paid.
INVESCO GLOBAL EQUITY INCOME TRUST PLC 81
ADDITIONAL INFORMATION – GLOSSARY OF TERMS AND ALTERNATIVE PERFORMANCE MEASURES
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 year financial report these return figures have been sourced from LSEG Data & Analytics
who calculate returns on an industry comparative basis.
Net Asset Value Total Return (‘APM’)
Total return on net asset value per share, with debt at market value, 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 (‘APM’)
Total return to shareholders, on a mid-market price basis, assuming all dividends received were re-invested, without transaction costs,
into the same class of shares in the Company at the time the shares were quoted ex-dividend.
Net asset
value total Share price
2025 return total return
As at 31 May 2025 337.36p 342.00p
As at 31 May 2024 313.30p 286.00p
Change in year a 7.7% 19.6%
Impact of dividend reinvestments
(1)
b 4.2% 5.0%
Total return for the year c = a+b 11.9% 24.6%
Net asset
value total Share price
2024 return total return
As at 31 May 2024 313.30p 286.00p
As at 31 May 2023 265.53p 232.00p
Change in year a 18.0% 23.3%
Impact of dividend reinvestments
(1)
b 3.0% 3.6%
Total return for the year c = a+b 21.0% 26.9%
(1) Total dividends paid during the year of 12.52p (2024: 7.35p Global Equity Income only) reinvested, without transaction costs, at the NAV or share price on the ex-dividend
date. NAV or share price falls subsequent to the reinvestment date consequently further reduce the returns, vice versa if the NAV or share price rises.
Benchmark
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.
82 INVESCO GLOBAL EQUITY INCOME TRUST PLC
ADDITIONAL INFORMATION – ALTERNATIVE INVESTMENT FUND MANAGERS DIRECTIVE DISCLOSURES
Alternative Investment Fund Manager (‘AIFM’) and the Alternative Investment Fund
Managers Directive (the ‘AIFMD’ or ‘Directive’)
Invesco Fund Managers Limited (‘IFML’) was authorised as an AIFM, and appointed by the Company as such, with effect from 22 July
2014. IFML is an associated company of Invesco Asset Management Limited (‘IAML’), the previous Manager, and IAML continues to
manage the Company’s investments under delegated authority from IFML. In accordance with the Directive, the Company qualifies as
an Alternative Investment Fund (‘AIF’).
Amongst other things, regulations enacted following AIFMD require certain information to be provided to prospective investors. This
information can be found in the Company’s section of the Manager’s website, www.invesco.com/uk/en/investment-trusts/invesco-global-
equity-income-trust.html, in a downloadable document entitled ‘AIFMD Investor Information’. There have been no material changes to
this information in the year to 31 May 2025 or up to the date of this report. Any information requiring immediate disclosure pursuant
to the Directive will be disclosed through a primary information provider.
In addition, the Directive requires information in relation to the Company’s leverage (both ‘gross’ and ‘commitment’ – see Glossary of
Terms on page 80) and the remuneration of the Company’s AIFM (‘IFML’) to be made available to investors.
Accordingly:
• the leverage calculated for the Company at its year end was 100% for both gross and commitment (2024: both 99%). The limits
the AIFM has set for the Company remain unchanged at 250% and 200%, respectively;
• the AIFMs summary remuneration policy is available from the corporate policies section of the Manager’s website,
www.invesco.com/uk, and on request from the Company’s Company Secretary, (see contact details on page 78); and
• the AIFM remuneration paid for the year to 31 December 2024 is set out below.
AIFM Remuneration
On 18 March 2016, Invesco Fund Managers Limited (the ‘Manager’) adopted a remuneration policy consistent with the principles
outlined in the European Securities and Markets Authority (‘ESMA’) Guidelines on sound remuneration policies under the AIFM Directive.
The policy was revised in 2024 to include specificities for some Invesco EU regulated management companies. The Manager was not
impacted by the changes.
The purpose of the remuneration policy is to ensure the remuneration of the staff of the Manager is consistent with and promotes
sound and effective risk management, does not encourage risk-taking which is inconsistent with the risk profiles, rules or instruments
of incorporation of the Manager and of the AIFs it manages and does not impair the Manager’s compliance with its duty to act in the
best interests of the AIFs it manages. The Manager’s summary remuneration policy is available from the corporate policies section of
Invesco’s website (www.invesco.com/uk). Paper copies of the full remuneration policy can be obtained for free from the registered
office of the Manager, Invesco Fund Managers Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire, RG9 1HH,
UK, upon request.
The remuneration policy is reviewed annually by Invesco’s Compliance, Human Resources and Risk Management functions, who
recommend any adjustments to ensure continued alignment of the policy with sound risk management. The board of directors of the
Manager are responsible for the oversight of remuneration and for ensuring adherence to this policy through the Human Resources
function.
Invesco’s internal audit function conducts regular testing of administration of the remuneration policy to assess its ongoing compliance
with the Invesco Group’s remuneration policies and procedures.
The Manager does not employ any direct staff. All staff involved in the AIF-related activities of IFML are employed and paid by various
entities of the Invesco Limited Group.
The aggregate total remuneration of Invesco staff involved in AIF-related activities of the Manager in respect of performance year
2024 (1 January 2024 to 31 December 2024) is £1.43 million of which £0.90 million is fixed remuneration and £0.53 million is
variable remuneration. The number of beneficiaries apportioned to AIFMD activities is seven.
The Manager has identified individuals considered to have a material impact on the risk profile of the Manager or the AIFs it manages
(‘Identified Staff’), who include board members of the Manager, senior management, heads of control functions, other risk takers and
any employees receiving total remuneration that takes them into the same remuneration bracket as senior management and risk takers.
The aggregate total remuneration paid to the Identified Staff of the Manager for AIF-related activities for the performance year 2024
(1 January 2024 to 31 December 2024) is £0.44 million of which £0.19 million is paid to senior management and £0.25 million is
paid to other Identified Staff. Please note that remuneration for AIFMD Identified Staff includes remuneration for staff employed by
delegates.
Alternative Investment Fund Managers
Directive Disclosures
INVESCO GLOBAL EQUITY INCOME TRUST PLC 83
ADDITIONAL INFORMATION – ALTERNATIVE INVESTMENT FUND MANAGERS DIRECTIVE DISCLOSURES
The Manager of Invesco Global Equity Income Trust plc is Invesco Fund
Managers Limited.
Invesco Fund Managers Limited is a wholly owned subsidiary of Invesco Limited
and is authorised and regulated by the Financial Conduct Authority.
Invesco is one of the largest independent global investment management firms,
with funds under management of $2,001.4 billion.
(1)
Invesco aims to provide the highest returns available from markets, through
active management, but in a controlled manner, conscious of the risks involved
and within its clients’ objectives.
(1)
As at 30 June 2025.
INVESCO GLOBAL EQUITY INCOME TRUST PLC Annual Financial Report 2025
IGET A diversified, high conviction portfolio
– providing the opportunity to deliver
strong performance across market cycles