Nick Mustoe has taken over as manager of the Invesco Perpetual Global Equity Income Fund. This follows the departure of previous managers Paul Boyne and Doug McGraw.
Nick Mustoe is Invesco Perpetual's Chief Investment Officer and the fund will be under his stewardship temporarily while a replacement is recruited. During this time he will be supported on the fund by the wider global equity team.
There are no changes planned to the way the fund is managed. Nick Mustoe and the team will continue to focus on companies they believe are able to grow profit margins sustainably, even in a challenging economic environment. They also look for companies returning cash to shareholders via dividend payments, although they will invest in companies with low yields if they see the potential for dividend growth over the long term.
Presently, the portfolio is mainly invested in companies listed across the developed markets of the US, UK and Europe. However, the managers have the flexibility to invest globally, including in higher risk emerging markets. Key holdings currently include pharmaceutical companies such as Swiss-listed Novartis and Roche. They also like US consumer goods firm Johnson & Johnson and UK tobacco firm British American Tobacco. These are examples of cash generative, 'defensive' companies, which sell products consumers buy again and again regardless of the economic environment.
This is a reasonably concentrated portfolio containing 64 stocks, which means each can contribute significantly to performance, but it is high risk.
The fund currently yields 3.1% (net, variable and not guaranteed), which set against a background of low interest rates looks attractive, although remember unlike cash, the value of any investment will fall as well as rise and you could get back less than you invest. Please note the fund's charges are taken from capital which reduces the potential for capital growth.
Since launch in March 2009 the fund has outperformed the average fund in its peer group, growing by 76.0% compared with 74.7% for the IMA Global Equity Income Sector*. Please remember past performance is not a guide to the future.
|% Growth 01/01/10 to 03/01/11||% Growth 03/01/11 to 02/01/12||% Growth 02/01/12 to 01/01/13|
|Invesco Perpetual Global Equity Income Fund||15.59||4.88||10.69|
|IMA Global Equity Income||15.19||-2.11||9.77|
Source: Lipper Hindsight. Past performance figures not available before this date. *Figures 01/01/2013.
We are comfortable with Nick Mustoe's stewardship of this fund. We do not believe investors need to take any further action at this stage providing it still meets their objective. Once a permanent replacement is found we will look to meet the new manager and update investors with our views. This fund does not currently feature on the Wealth 150 list of our favourite funds in each sector.