Invesco UK Equity Income Inclusive - Accumulation (GBP)

Sell:2,548.99p Buy:2,548.99p Change:

9.37p (0.37%)

Prices as at 25 February 2021

Sell:2,548.99p

Buy:2,548.99p

Change:

9.37p (0.37%)

You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account

Prices as at 25 February 2021

Sell:2,548.99p

Buy:2,548.99p

Change:

9.37p (0.37%)

Prices as at 25 February 2021

You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account

The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund does not feature on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. This is not a recommendation to sell; however, if you are thinking of adding to your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist »

Ciaran Mallon and James Goldstone took over as co-managers of this fund in May 2020, after Mark Barnett stepped down as manager and left Invesco. Goldstone joined Invesco's UK Equities team in 2012 and has run UK equity funds since 2016. Mallon joined Invesco in 2005 and has since run a number of UK equity funds, including the Invesco Income & Growth Fund.

The managers use a slightly different investment approach than the previous manager. This means the way the fund is invested will change over time. We have known Mallon for some time and we view him as a sensible fund manager. He has a less aggressive approach to investing and his funds aren't typically biased too heavily towards one particular style of stock. That said, the managers will continue to aim to achieve income and growth over the long term.

There are lots of talented fund managers investing in the UK for income and we currently think there are funds that offer more potential. These are listed on the Wealth 50.

Our view on the sector

The UK stock market is home to lots of world-class companies. From international giants to a diverse array of smaller businesses. This provides a rich hunting ground for fund managers in this sector. They all try to grow investors' money over the long term, but each goes about it in a different way. Some focus on larger companies in the FTSE 100 index, others invest in medium-sized or smaller companies, and some have the flexibility to invest in any company, regardless of size. Some aim to match or deliver a return similar to the broader UK stock market. Others have the freedom to try and make as much money as possible for investors and take more risks. That could mean investing in only a small number of companies, for instance. A fund that invests in UK shares is normally the first port of call for UK-based investors. But with such a variety on offer, investors should make sure a fund is right for their circumstances before investing.

Performance Analysis

Ciaron Mallon has run a number of UK funds throughout his investing career, and managed UK income funds since 2003. Over the long term our analysis shows he hasn't performed as well as the UK stock market, as measured by the FTSE All Share Index, and performance has tended to be relatively inconsistent against this benchmark.

Our research also shows that, while the manager has invested in sectors that have typically gone on to perform well, his stock picking within those sectors hasn't been strong enough for the fund to beat the benchmark. Past performance isn't a guide to future returns though.

Investment Philosophy

The managers mainly look at the prospects of individual companies, with a focus on the dividends they could potentially pay, rather than what's going on in broader sectors or the wider economy. They aim to invest in companies when their share prices and valuations are lower than their future prospects suggest they should be. They like companies with the ability to increase their dividends over time.

Process and Portfolio Construction

While the managers typically focus on lowly valued companies, they take a pragmatic approach and also invest in some 'growth' stocks, which are perceived to have more predictable earnings growth. They currently favour companies that rely more on the health of the UK economy for their success.

The fund currently invests in companies of all sizes, including large, medium-sized and higher-risk smaller companies. A portion of the fund also invests in unquoted companies (those not yet listed on the stock market). They're less liquid (more difficult to buy and sell) than larger companies, which could potentially make it more difficult to meet large redemptions in the funds and are so higher-risk. Invesco have announced their intention to sell the unquoted companies from the funds, which could improve the overall liquidity of the funds.

Please note the less liquid nature of these positions means it could take some time for them to be sold. We would like to see the manager make quick progress in selling this element to ensure they maintain sufficient liquidity to cover any further redemptions. The managers also have the ability to use derivatives which adds risk.

Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

	25/02/16 to 25/02/17	25/02/17 to 25/02/18	25/02/18 to 25/02/19	25/02/19 to 25/02/20	25/02/20 to 25/02/21
Annual return	7.87%	-3.86%	0.59%	-3.62%	-17.01%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Invesco is one of the largest investment managers in the UK and they believe there are no short cuts to long-term investment success. They offer a large range of funds across a number of sectors and each follows a clear, disciplined investment process. The company has a particularly strong reputation for their UK equity and fixed interest funds.

Information about the fund

Fund manager biography

Manager Name:	James Goldstone
Manager start date:	15 May 2020
Manager located in:	Henley-on-Thames

James joined the Henley Investment Centre's UK Equities team in August 2012 and was appointed manager of the UK equities portfolio of Invesco Perpetual Select Trust plc in October 2016. He was subsequently appointed manager of the Keystone Investment Trust plc portfolio in April 2017 and also manages UK equity pension and pan-European equity mandates. Prior to joining Invesco, James was co-head of pan-European sales at Banco Espirito Santo in London. James began his career in pan-European equity sales at Credit Lyonnais in 2001 and went on, via HSBC and Dresdner Kleinwort, to specialise in UK equity sales

Manager Name:	Ciaran Mallon
Manager start date:	15 May 2020
Manager located in:	Henley

Ciaran joined the company in January 2005 and is part of the UK Equities team managing UK Equity portfolios. Ciaran began his investment career in 1994 joining HSBC where he worked as an investment analyst before moving to United Friendly Asset Management (UFAM) in 1999 as a fund manager. He holds a BA (Hons) Chemistry from Oxford University and has also gained the CFA and Securities Institute Diploma.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.

You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account

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