26th Feb 2025 12:01
(Alliance News) - Invesco Global Equity Income Trust PLC on Wednesday said further interest rates are expected while inflationary pressures remain, as it posted net asset value growth.
The investment trust aiming to provide an attractive level of predictable income and capital appreciation over the long term said net asset value per share rose 8.6% to 340.27 pence as at November 30 from 313.30p at May 31.
NAV total return was 10.7% in the six months to November 30, underperforming against its benchmark, the MSCI World index in sterling, which had a total return of 11.4%.
Invesco Global said a key contributor was 3i Group PLC, a London-based private equity and venture capital company, with a positive performance impact of around 1.1%.
"The private equity company continued to benefit from its investment in European discount retailer Action, which continues to perform well," Invesco Global said.
A key detractor meanwhile was Paris-based glass container manufacturing firm Verallia SA, with a negative performance impact of around 1.6%.
Verallia "lost ground in July after the company cut its annual earnings guidance citing a slow recovery in demand. However, in October the company reported that volume growth had returned in the third quarter which led to shares regaining some of the lost ground. We remain optimistic about the long-term prospects of the business, which is a market leader in European glass packaging," Invesco Global said.
3i is 5.4% of Invesco Global's portfolio, while Verallia is 2.1% of Invesco Global's portfolio.
Chair Sue Inglis said: "Looking ahead, we remain cautious yet optimistic about your company's prospects. Further interest rate cuts are anticipated but inflationary pressures remain. These factors are well known and should have been priced in by equity markets. More difficult for equity markets to price in is the ramifications of President Trump's unpredictable approach to policy making, and, as a result, global equity markets are likely to remain volatile.
"We are confident, however, in our portfolio managers' investment approach and their ability to identify quality companies where returns are driven by stock-specific factors rather than determined by a particular macro or economic environment and their focus will remain on high-conviction investments, maintaining a diversified portfolio and actively managing risks."
Invesco Global shares were 0.6% lower at 343.99 pence each on late Wednesday morning in London.
By Tom Budszus, Alliance News slot editor
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