Annual Financial Report
Summary by AI BETAClose X
LEI: 549300JZQ39WJPD7U596
Invesco Global Equity Income Trust plc
Annual Financial Report for the year ended 31 May 2026
The following text is extracted from the Annual Financial Report of the Company for the year ended 31 May 2026. All page numbers below refer to the Annual Financial Report which will be made available on the Company's website.
“It was another transformational year for Invesco Global Equity Income Trust, with the successful completion of the combination with Franklin Global Trust, continued strong demand for the Company’s shares and a significant increase in scale.
While performance over the year lagged the benchmark in narrow momentum-driven markets, the Board remains confident in the Portfolio Managers’ disciplined, valuation-focused approach. The long-term prospects for the Company’s carefully selected global portfolio remain compelling.”
Sue Inglis, Chair
“The current environment has led to increased benchmark concentration, particularly in a small number of large US and AI-related companies. We have remained comfortable being differentiated from this, while maintaining exposure across both growth and value opportunities and avoiding more extreme style or factor positions, which we believe can limit the ability to perform across different market conditions.”
Stephen Anness
Portfolio Manager, Head of Global Equities
Highlights
- c.£162m added to IGET’s net assets through the combination with Franklin Global Trust, broadening the Company’s shareholder base
- £78m raised from strong secondary market demand for IGET shares
- £510m market capitalisation at 31 May 2026, an increase of 86.6% over the year
- +22.2% / +22.4% NAV total return/share price total return, compared with benchmark index total return of +27.5%
- AIC ‘Next Generation Dividend Hero’ status retained, reflecting 16 consecutive years of dividend increases
- 13.50p total dividends per share paid, an increase of 7.8% over prior year
- 1.4% average share price premium to NAV
- 16.00p total dividends per share expected to be paid for year ending 31 May 2027, an increase of 18.5% over last year
Financial Performance
Total return (with dividends reinvested)1
| Change for the year (%) | 2026 | 2025 |
| Net asset value (‘NAV’) total returnAPM | 22.2% | 11.9% |
| Share price total returnAPM | 22.4% | 24.6% |
| Benchmark index total return2 | 27.5% | 7.4% |
1 Source: LSEG Data & Analytics.
2 The benchmark index of the Company is the MSCI World Index (total return, in sterling terms, with dividends reinvested net of withholding taxes).
APM Alternative performance measure. See Glossary of Terms and Alternative Performance Measures on pages 104 to 106 for details of the explanation and reconciliations of APMs.
Capital Statistics
At 31 May
| 2026 | 2025 | % change | |
| NAV per ordinary share | 397.55p | 337.36p | +17.8 |
| Share price1 | 404.00p | 342.00p | +18.1 |
| Premium/(discount)APM per ordinary share | 1.6% | 1.4% |
1 Source: LSEG Data & Analytics.
APM Alternative performance measure. See Glossary of Terms and Alternative Performance Measures on pages 104 to 106 for details of the explanation and reconciliations of APMs.
Revenue Statistics
Year ended 31 May
| 2026 | 2025 | % change | |
| Revenue return per ordinary share | 5.73p | 5.01p | +14.4 |
| Dividends per ordinary share | |||
| – first interim | 3.375p | 3.13p | |
| – second interim | 3.375p | 3.13p | |
| – third interim | 3.375p | 3.13p | |
| – fourth interim | 3.375p | 3.13p | |
| Total dividends | 13.50p | 12.52p | +7.8 |
| Ongoing charges ratio1,APM | 0.70% | 0.78% |
1 Year ended 31 May 2026 includes the effect of the management fee waiver agreed between the Company and the Manager following the combination with Franklin Global Trust plc during the year (see note 3 on page 89 for further details).
APM Alternative performance measure. See Glossary of Terms and Alternative Performance Measures on pages 104 to 106 for details of the explanation and reconciliations of APMs.
Performance Record
Total Return and Income
For the year ended 31 May
| 2026 | 2025 | 2024 | 2023 | 2022 | |
| Net asset value1 | 22.2% | 11.9% | 21.0% | 9.8% | 9.6% |
| Share price1 | 22.4% | 24.6% | 26.9% | 4.6% | 4.4% |
| MSCI World Index (£)1 | 27.5% | 7.4% | 21.6% | 3.8% | 7.4% |
| Revenue return per share | 5.73p | 5.01p | 9.03p | 5.20p | 4.85p |
| Dividends | 13.50p | 12.52p | 7.35p | 7.20p | 7.15p |
1 Source: LSEG Data & Analytics.
Historical Shareholder Returns from an Initial Investment of £1,000 on 31 May 20161
| Annual | Cumulative | Capital | Outcome if | |||
| Annual | dividends | dividends | value (using | dividends | ||
| dividends | from | from | Mid-market | mid-market | reinvested on | |
| per share2,3 | Investment2,3 | Investment2,3 | share price | share price) | payment date | |
| 31 May | pence | £ | £ | pence | £ | £ |
| 2016 | – | – | – | 156.00 | 1,000 | 1,000 |
| 2017 | 6.40 | 41 | 41 | 197.50 | 1,266 | 1,310 |
| 2018 | 6.70 | 42 | 83 | 202.00 | 1,295 | 1,384 |
| 2019 | 6.90 | 45 | 128 | 195.00 | 1,250 | 1,383 |
| 2020 | 7.05 | 45 | 173 | 176.50 | 1,131 | 1,299 |
| 2021 | 7.10 | 45 | 218 | 226.00 | 1,449 | 1,721 |
| 2022 | 7.15 | 46 | 264 | 229.00 | 1,468 | 1,798 |
| 2023 | 7.20 | 46 | 310 | 232.00 | 1,487 | 1,879 |
| 2024 | 7.35 | 47 | 357 | 286.00 | 1,833 | 2,383 |
| 2025 | 12.52 | 81 | 438 | 342.00 | 2,192 | 2,965 |
| 2026 | 13.50 | 86 | 524 | 404.00 | 2,590 | 3,631 |
- Source: LSEG Data & Analytics.
- Based on dividend payment dates.
- Dividends are those paid on the ordinary shares (known as Global Equity Income shares prior to 7 May 2024) for each year ended 31 May. In 2024, the Company adopted an enhanced dividend policy whereby it targets an annual dividend of at least 4% of the unaudited prior financial year-end NAV per share, paid quarterly in equal amounts.
Chair’s Statement
Dear Shareholder,
I am pleased to present your Company’s Annual Financial Report for the year ended 31 May 2026.
The year under review was another significant one for your Company. It completed its merger with Franklin Global Trust (‘FRGT’), continued to issue shares in response to investor demand and ended the year with materially greater scale. Your Board believes these developments have strengthened the Company’s position within the global equity income investment company sector and as an attractive option within the broader global equity income fund universe and enhanced its ability to serve both existing and new shareholders over the long term.
Market overview
Over the 12 months ended 31 May 2026, global stock markets rose strongly, masking significant stock and sector volatility and wide dispersion in share price performance. Company earnings generally held up well, but investors were at times unsettled by concerns about inflation, interest rates, oil prices, trade tensions, economic growth and geopolitical events, including developments in the Middle East. In this environment, share prices were often driven more by short-term market sentiment than by the underlying strength of individual companies.
Returns varied widely across countries and sectors. Although investor interest broadened somewhat beyond the dominant US technology names, market leadership remained concentrated in a relatively small group of companies, particularly those viewed as beneficiaries of artificial intelligence. This presented a challenging backdrop for valuation-oriented investment approaches such as that followed by your Company’s Portfolio Managers. Nevertheless, it also created opportunities to buy good businesses which were mispriced.
Performance
The NAV total return per share was +22.2% over the year ended 31 May 2026, compared with the MSCI World Index (total return, in sterling terms), IGET’s benchmark, which returned +27.5%. 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 on pages 14 to 18.
While your Company’s NAV total return lagged the benchmark over the financial year as a whole, performance improved materially during the second half of the year. Your Company delivered the strongest NAV total return within the AIC Global Equity Income sector over that six-month period. Your Board believes it is important not to become fixated on short-term performance, instead preferring to assess performance over longer periods, where the strength and consistency of the Portfolio Managers’ investment approach can be more fully demonstrated. On a NAV total return per share basis, IGET outperformed the MSCI World Index in 20 of the 25, or 80%, of the rolling three-year periods (using month-end returns) over the five years ended 31 May 2026. The Board believes that this high degree of consistency, considered alongside the Company’s longer-term performance record, supports its confidence in the Portfolio Managers’ ability to deliver attractive returns over the long term across differing market conditions.
The share price total return over the year was +22.4%. The shares traded at an average premium to NAV of 1.4% during the year and ended the year at a premium of 1.6%.
Gearing
Gearing remains available to the Portfolio Managers as a tool to enhance returns where appropriate, subject to Board oversight and risk controls. During the year, IGET’s revolving credit bank loan facility was extended for a further year to 21 April 2027 and increased from £40 million to £70 million. The Portfolio Managers use of gearing is determined as an extension to the valuation-based approach applied to stocks and was discussed in detail at the Board’s strategy meeting in March 2026. Your Board anticipates that your Portfolio Managers may make greater use of the facility in market conditions where valuations become particularly compelling, although gearing is unlikely to exceed a single-digit percentage of net assets and a net cash position may be adopted in adverse market conditions.
During the year, IGET’s gearing position ranged from net gearing of 8.1% to net cash of 4.3% (2025: net gearing of 6.3% to net cash of 2.2%), based on net assets. At the year end, the net cash position was 3.1% (2025: 0.0%) and the loan facility was undrawn (2025: £2.7 million drawn down).
Revenue and dividends
The net revenue return per share for the year was 5.73p (2025: 5.01p).
Your Company’s dividend policy remains an important element of its appeal to shareholders. The policy targets an annual dividend of at least 4% of the unaudited prior financial year-end NAV, paid quarterly in equal amounts. In accordance with the dividend policy, dividends are paid from revenue and, if needed, capital reserves.
In respect of the year ended 31 May 2026, your Company paid four interim dividends, each of 3.375p per share (2025: 3.130p). This equates to 13.50p per share in total, compared with 12.52p per share for the prior year, representing an increase of 7.8%.
The NAV per share at 31 May 2026 was 397.55p. Accordingly, the annual dividend target for the year ending 31 May 2027 is 16.00p per share, an increase of 18.5% over last year. The first interim of 4.00p per share was paid on 13 August 2026 to shareholders on the register at the close of business on 24 July 2026 (the shares were marked ex-dividend on 23 July 2026).
Your Company is classified as an AIC ‘Next Generation Dividend Hero’, with 16 consecutive years of dividend increases. Appreciating that the reliability of income can be important for shareholders, your Board expects, in normal market conditions, to use IGET’s enhanced dividend strategy to maintain this status.
Combination with Franklin Global Trust plc
The combination of IGET and FRGT, with your Company as the continuing company, was announced on 13 November 2025 and completed on 27 February 2026. FRGT shareholders were offered a 100% cash exit, but holders of approximately 96% of its shares elected to roll over their investment into IGET rather than receive cash. This was a strong endorsement of your Company’s investment proposition and I would like to take this opportunity to welcome former FRGT shareholders.
A key benefit of the merger was an increase in IGET’s net assets of £162 million, equivalent to around 55% of net assets immediately prior to completion. This increase, together with strong secondary market demand for IGET shares and market rises, led to an increase in market capitalisation over the course of the financial year of 86.6% to £510.4 million. A consequential benefit is the substantially increased economies of scale, which should result in a lower ongoing charges ratio, although this benefit will only be fully reflected in the year ending 31 May 2027 and subsequent years.
The merger did not result in any change to the Company’s investment objective, policy or strategy.
Share issues and buy-backs
Your Board continues to monitor closely the rating of the Company’s shares and the balance between supply and demand in the market. During the year, the Company sold 17.1 million shares from treasury and issued 3.9 million new shares, together equivalent to 33.3% of the shares in circulation at 31 May 2025. These shares were sold and issued at an average premium of 1.9% and raised £78.2 million in total.
Any share issuance is undertaken only when it is expected to be accretive to existing shareholders and to support the longer-term benefits of increased scale, including improved liquidity and the potential for a lower ongoing charges ratio.
As the shares mostly traded at a premium during the year, no shares were bought back. Nevertheless, the Board reiterates its intention, should the shares move to a persistent discount in normal market conditions, to use IGET’s buy-back authority with the objective of maintaining a discount no wider than mid-single digits.
Governance and Board composition
Your Board is committed to maintaining high standards of governance and to acting in the best interests of shareholders as a whole. During the year, we continued to engage with the Manager and advisers on investment performance, risk management, costs, shareholder communications and IGET’s longer-term strategic positioning. The Board also keeps under review its own composition, effectiveness and succession planning to ensure that it has the right balance of skills, knowledge and experience.
We were delighted to welcome Christopher Metcalfe, former chair of FRGT, as a non-executive Director of the Company. Christopher joined the Board on completion of the combination and brings considerable additional global equity fund management and investment company experience to the Board. His biography can be found on page 47.
Mark Dampier, Chair of the Marketing Committee, will be retiring as a Director at this year’s Annual General Meeting, having served nine years when taking into account his service on the Board of Invesco Income Growth Trust plc, which merged with the Company in 2021. On behalf of the Board, I thank Mark for his valued contribution to your Company and wish him all the best for the future. In anticipation of Mark’s retirement, the Board reviewed the responsibilities and operation of the Marketing Committee and decided to collapse the Committee with effect from 1 June 2026 and transfer its responsibilities back to the Board. This reflects the importance of marketing and its relevance in broader discussions held at Board meetings.
Continuation vote
Shareholders have the opportunity to vote on the continuation of IGET at every fifth annual general meeting. This provides shareholders with a formal mechanism to express their views on IGET’s strategy, performance and ongoing existence. A continuation vote will be proposed at this year’s Annual General Meeting (resolution 11) and I would urge all shareholders to vote in favour of continuation.
Annual General Meeting
The AGM will be held at 2.00 p.m. on Wednesday 21 October 2026 at the offices of Invesco Asset Management Limited at 3rd Floor, 60 London Wall, London EC2M 5TQ. Full details, including the Notice of AGM and voting instructions, are set out on pages 108 to 114.
The Board looks forward to meeting shareholders at the AGM and, in particular, to answering any questions they may have and discussing their views. We encourage shareholders to attend.
Proposed cancellation of the share premium account
The Board is proposing the cancellation of the Company’s share premium account at this year’s AGM. For technical accounting reasons and as a result of the combination with FRGT, the Company has a substantial share premium account which is non-distributable. The cancellation of the share premium account, subject to the confirmation of the Court, will result in a corresponding amount being credited to a distributable capital reserve.
The cancellation of the share premium account (as explained in more detail on page 114) to create distributable reserves provides the Board with flexibility to use such distributable reserves should it wish to do so for shareholder distributions (such as buy-backs or dividends) in the future.
Post-period end update
Since 31 May 2026, the NAV and share price total returns per share were -0.7% and -0.5% respectively, compared with the MSCI World Index (£) total return of +2.2% (to 18 September 2026). At 18 September 2026, the shares were trading at a premium of 1.8%.
Since the year end, IGET has issued 3.2 million new shares (equivalent to 2.5% of the shares in circulation at the year end) at an average premium of 2.0%, raising £13.1million. No shares have been bought back.
Outlook
Looking ahead, global stock markets are likely to remain unsettled. The recent sharp rise in government bond yields, driven by persistent fiscal concerns, increasing debt issuance and renewed inflationary pressures, has added a further layer of uncertainty for equity investors. Inflation has proved more resilient than previously anticipated, prompting the European Central Bank and US Federal Reserve to resume monetary tightening, whilst other central banks continue to balance inflation risks against weaker economic growth. Higher interest rates and bond yields may continue to exert pressure on equity valuations, particularly in rate-sensitive sectors, and increase the cost of capital for businesses. Geopolitical uncertainty, changes in trade policy and elevated expectations for companies exposed to artificial intelligence are also likely to cause periods of market volatility. On a more positive note, many companies continue to have strong balance sheets and resilient earnings, and higher yields have, in some cases, created more attractive entry points for long-term investors.
Your Board remains confident that your Company is well-positioned to navigate this environment. Your Portfolio Managers’ investment approach remains grounded in bottom-up stock selection, careful attention to valuation and diversification across markets and sectors. This disciplined approach is particularly important given the concentration of recent market returns and elevated expectations in certain parts of the market.
By investing across a broad range of high-quality companies worldwide, your Portfolio Managers aim to manage risk while seeking attractive long-term returns for shareholders. Although short-term market conditions may remain unpredictable, your Board believes the long-term outlook for your Company’s carefully selected portfolio remains positive.
Sue Inglis
Chair
22 September 2026
Portfolio Managers’ Report
Stephen Anness
Portfolio Manager, 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 portfolio in January 2020.
Stephen began his investment career within the Henley-based 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-based 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.
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. Joe has worked with Stephen on the Company’s global equity income portfolio since January 2020, and was appointed as Deputy Portfolio Manager in September 2024.
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.
Q & A
With the Portfolio Managers
How would you describe markets over the year ended 31 May 2026?
Over the year, markets were increasingly driven by short-term momentum, with returns concentrated in a relatively small group of stocks, particularly those linked to AI.
This reflects a broader shift in how markets are behaving, with a greater proportion of trading activity driven by investors focused on shorter time horizons. As a result, share price moves have increasingly been driven by positioning and sentiment, rather than underlying fundamentals.
These dynamics have contributed to more pronounced dispersion across stocks, as well as increased concentration in the benchmark, with a relatively small number of companies driving a large share of returns.
More recently, the first half of 2026 has seen a more volatile backdrop, with macro and geopolitical developments becoming more influential. Movements in oil prices, renewed uncertainty around inflation and shifting expectations for interest rates have contributed to sharper market swings and periods of dislocation, alongside intermittent sector rotation.
At the same time, markets continued to exhibit a more binary approach, particularly around AI, with a clear distinction made between perceived “winners” and “losers”.
As a result, these dynamics created more frequent dislocations, where share prices can diverge from underlying fundamentals over shorter periods. While this can create near-term challenges, it also provides opportunities to invest in high-quality businesses at more attractive valuations.
How has the portfolio performed over the period?
Over the 12 months ended 31 May 2026, the Company’s net asset value total return was +22.2%, compared with the MSCI World Index (£) which delivered a total return of +27.5% over the same period.
Opposite is an analysis of the main contributors and detractors during the period.
| Average | |||
| Performance | portfolio | ||
| Key contributors | Industry | impact % | weight % |
| Dell Technologies | Technology Hardware | 4.7 | 1.6 |
| and Equipment | |||
| Texas Instruments | Semiconductors and | 2.2 | 5.3 |
| Semiconductor Equipment | |||
| Taiwan Semiconductor | Semiconductors and | 2.2 | 2.6 |
| Manufacturing (TSMC) | Semiconductor Equipment | ||
| ASML1 | Semiconductors and | 1.7 | — |
| Semiconductor Equipment | |||
| Rolls-Royce | Capital Goods | 1.4 | 4.1 |
| Key detractors | |||
| 3i | Financial Services | –5.2 | 4.4 |
| Alphabet2 | Media and Entertainment | –2.3 | — |
| Novo-Nordisk1 | Pharmaceuticals, Biotechnology | –1.6 | — |
| and Life Sciences | |||
| Universal Music (UMG) | Media and Entertainment | –1.6 | 1.9 |
| Prosus | Consumer Discretionary | –1.5 | 1.8 |
| Distribution and Retail |
Source: Invesco, Bloomberg.
1 Position sold over the course of the year.
2 Not held in the portfolio.
Relative underperformance was largely concentrated in the second half of 2025, when markets became increasingly momentum-driven, with narrow leadership focused on AI-related stocks. These types of environments tend to favour companies seeing rapid earnings upgrades and valuation expansion, while businesses with more stable growth, resilient balance sheets and predictable cash flows are often overlooked.
At the stock level, the largest detractor was 3i. Shares fell sharply late in 2025 after Action, its largest portfolio company, reported negative like-for-like sales in France for October, reflecting tough prior-year comparisons, softer economic conditions and adverse weather. Despite these near-term pressures, our conviction in Action remains unchanged and 3i continues to be one of the portfolio’s largest positions. Other notable detractors included Universal Music and Novo-Nordisk, with the latter impacted by a weaker sales outlook and intensifying competition. Not holding Alphabet also impacted relative performance.
On the positive side, Dell Technologies was a top performer, benefiting from strong AI-driven demand and improved earnings expectations, while ASML and Taiwan Semiconductor Manufacturing were supported by more resilient demand across semiconductors and Texas Instruments by better-than-expected guidance and improving end-market conditions.
Rolls-Royce also contributed strongly, extending its run after announcing a record share buy-back and raising earnings guidance in February, supported by robust demand across its civil aerospace, defence and power systems businesses.
Crucially, the table below highlights that our largest contributors to performance are drawn from a wide range of countries, sectors and industries. In contrast, the top 10 contributors within the index are all linked to the AI theme. We believe this diversity of performance drivers provides a more sustainable foundation for long-term returns, particularly if market sentiment towards AI were to change.
Differentiated return profile: Largest contributors to returns over the year to 31 May 2026
| MSCI World Index (%) | IGET portfolio (%) | ||
| Alphabet | 3.1 | Dell Technologies | 4.5 |
| NVIDIA | 2.8 | Texas Instruments | 3.3 |
| Apple | 2.3 | Taiwan Semiconductor Manufacturing | 2.7 |
| Broadcom | 1.3 | Rolls-Royce | 2.6 |
| Micron Technology | 1.2 | ASML | 2.5 |
| Amazon | 0.9 | Standard Chartered | 1.9 |
| Advanced Micro Devices | 0.9 | XPO | 1.8 |
| Intel | 0.6 | Broadcom | 1.7 |
| ASML | 0.5 | Viking Holdings | 1.7 |
| Lam Research | 0.4 | Aker BP | 1.4 |
Source: Invesco as at 31 May 2026.
Has the positioning of the portfolio changed significantly over the period?
There have been no changes to our investment philosophy or overall framework over the period.
Changes in positioning have been incremental and driven by bottom-up stock selection and the risk/reward opportunities available at the stock level, rather than any top-down view on sectors, regions or macro outcomes. This means that sector and regional exposures remain an outcome of individual stock decisions, rather than a starting point.
The current environment has led to increased benchmark concentration, particularly in a small number of large US and AI-related companies. We have remained comfortable being differentiated from this, while maintaining exposure across both growth and value opportunities and avoiding more extreme style or factor positions, which we believe can limit the ability to perform across different market conditions.
At a sector level, changes have reflected underlying stock opportunities. We increased exposure to materials and consumer-facing areas, including additions such as Amcor, a global packaging company, Novonesis, a biosolutions specialist focused on enzymes and ingredients, Diageo, a premium spirits business, and Prosus, an international consumer internet group, while reducing exposure to industrials and parts of information technology through a number of exits. This was partially offset by additions to names such as Dell Technologies, a US-based provider of IT infrastructure and data centre equipment.
More broadly, the portfolio reflects a preference for businesses where we see a clear disconnect between market expectations and longer-term fundamentals. In the current environment, this has often meant leaning away from the most crowded areas of the market and instead focusing on companies where sentiment is more cautious, but underlying demand and business quality remain intact.
We have also added selectively in areas where sentiment appears overly negative despite resilient underlying fundamentals. This includes parts of the market where the range of potential outcomes appears wider than is reflected in current valuations.
The portfolio continues to be constructed across our key opportunity sets:
• dividend compounders, such as Amcor, where we see resilient demand and a compelling risk/reward at low expectations;
• faster growth businesses, such as Dell Technologies, supported by strong AI-related demand and pricing power; and
• recovery situations, such as Diageo, where management change and a dividend reset have created financial flexibility, with the valuation at a multi-year low.
At the same time, we have reduced or exited positions where valuations have become less compelling, recycling capital into areas where we see a more favourable balance of risk and return.
A closer look at a recent investment
A good example that illustrates the type of opportunity underpinning the portfolio is Amcor, a recent addition. It is a global packaging company supplying products across food, beverage, healthcare and personal care markets. Following its merger with Berry Global, the business has strengthened its position as a global scale player, with increased exposure to higher growth and higher margin end markets.
What makes Amcor particularly attractive is the resilience of its business model. Demand for packaging is largely independent of underlying brand dynamics, meaning the company can benefit regardless of whether consumers favour premium or private label products. This provides a stable foundation for cash flow generation across economic cycles, while its scale and global footprint support operational efficiency and pricing discipline.
In addition, the combination with Berry enhances Amcor’s exposure to faster growing segments, including healthcare, beauty and nutrition, which we believe should support a more balanced growth profile over time alongside its established core markets.
Despite these qualities, the shares continue to trade on relatively modest valuation multiples and offer an attractive yield. In our view, this suggests that expectations remain undemanding relative to the underlying quality of the business and its long-term growth potential.
Taken together, this provides an attractive opportunity to invest in a resilient, cash-generative business where valuation does not fully reflect longer-term fundamentals, and which fits well within the portfolio’s emphasis on durable, income-generative holdings.
What changes have you made to your process?
While our investment philosophy remains unchanged, we have adapted aspects of the process to reflect changes in market structure. A greater share of trading activity is now driven by shorter-term investors and systematic flows, which has led to faster and, at times, more pronounced moves in share prices.
In response, we have become more active and flexible in how we implement the process. This includes building a deeper pipeline of ideas so we can act quickly when opportunities arise, increasing turnover to make better use of volatility and using tools such as our proprietary stock comparison sheet to ensure we remain objective as relative opportunities shift. These changes are designed to better capture opportunities created by a more flow-driven market, while our core approach of investing in high-quality businesses at attractive valuations remains unchanged.
What are your thoughts on gearing?
We use gearing selectively. In simple terms, we tend to increase exposure when markets fall, and valuations become more attractive and reduce it again as markets recover and expectations rise.
Periods of volatility often create these opportunities. When prices dislocate and we see better long-term value, we are prepared to use gearing to add exposure. Equally, when markets rebound and valuations move higher, we become more cautious and scale risk back.
A recent example was in March. Markets sold off sharply following the escalation in tensions between the US, Israel and Iran at the end of February. As valuations fell, we increased gearing to take advantage of the weakness. As markets recovered over the following weeks, we reduced gearing again, locking in the benefit and avoiding adding risk at higher levels.
Overall, our approach is pragmatic. We use gearing where it can enhance long-term returns, but we remain flexible and adjust it as the risk/reward balance changes.
What is your outlook for 2026?
Looking ahead, the opportunity set is broadening as volatility continues to create dislocations across markets. This is leading to a greater dispersion in valuations, with a wider gap emerging between areas where expectations remain elevated and those where sentiment is more cautious.
Constraints in private equity are increasing forced selling, as access to capital has become more limited and exit conditions remain challenging. This is creating opportunities for well-capitalised buyers to access high-quality assets at more attractive prices, particularly where short-term pressures have led to indiscriminate selling.
Markets also appear increasingly binary in their assessment of AI, with a clear distinction being drawn between perceived “winners” and “losers”. In our view, this has led to a more narrow interpretation of opportunity. We see a broader set of beneficiaries, including in data, exchanges and information-rich business services where AI may reinforce existing competitive advantages, as well as in areas such as catering, packaging and healthcare supply where long-term demand drivers remain intact but valuations already reflect a more cautious outlook.
More broadly, we continue to see opportunities where market expectations appear misaligned with underlying fundamentals, particularly in businesses where sentiment has weakened despite resilient cash flow generation and strong competitive positioning.
We remain focused on identifying opportunities where risk and return are better balanced.
Stephen Anness
Portfolio Manager
Joe Dowling
Deputy Portfolio Manager
22 September 2026
List of Investments
At 31 May 2026
Ordinary shares unless stated otherwise.
| At market | ||||
| Company | Industry1 | Country | value (£’000) | % of portfolio |
| Texas Instruments | Semiconductors and Semiconductor Equipment | United States | 26,615 | 5.5 |
| Canadian Pacific Kansas City | Transportation | Canada | 22,998 | 4.7 |
| 3i | Financial Services | United Kingdom | 22,059 | 4.5 |
| AIA | Insurance | Hong Kong | 21,936 | 4.5 |
| Rolls-Royce | Capital Goods | United Kingdom | 20,503 | 4.2 |
| Taiwan Semiconductor Manufacturing | Semiconductors and Semiconductor Equipment | Taiwan | ||
| – Ordinary shares | 12,924 | 2.7 | ||
| – ADS2 | 5,882 | 1.2 | ||
| 18,806 | 3.9 | |||
| Microsoft | Software and Services | United States | 16,741 | 3.4 |
| Coca-Cola Europacific Partners | Food, Beverage and Tobacco | United Kingdom | 15,425 | 3.2 |
| Standard Chartered | Banks | United Kingdom | 13,911 | 2.9 |
| Medline | Health Care Equipment and Services | United States | 13,702 | 2.8 |
| Top 10 holdings | 192,696 | 39.6 | ||
| London Stock Exchange | Financial Services | United Kingdom | 12,942 | 2.6 |
| East West Bancorp | Banks | United States | 12,042 | 2.5 |
| Union Pacific | Transportation | United States | 11,302 | 2.3 |
| Aker BP | Energy | Norway | 10,814 | 2.2 |
| Broadcom | Semiconductors and Semiconductor Equipment | United States | 10,689 | 2.2 |
| Novonesis – B Shares | Materials | Denmark | 9,863 | 2.0 |
| Universal Music | Media and Entertainment | Netherlands | 9,725 | 2.0 |
| QXO | Capital Goods | United States | 9,712 | 2.0 |
| Amcor | Materials | United Kingdom | 9,558 | 2.0 |
| RELX | Commercial and Professional Services | United Kingdom | 9,502 | 2.0 |
| Top 20 holdings | 298,845 | 61.4 | ||
| Viking Holdings | Consumer Services | United States | 9,402 | 1.9 |
| American Tower | Equity Real Estate Investment Trusts (REITs) | United States | 9,252 | 1.9 |
| Rosebank Industries | Financial Services | United Kingdom | 8,898 | 1.8 |
| Prosus | Consumer Discretionary Distribution and Retail | Netherlands | 8,825 | 1.8 |
| Dell Technologies | Technology Hardware and Equipment | United States | 7,807 | 1.6 |
| NVIDIA | Semiconductors and Semiconductor Equipment | United States | 7,617 | 1.6 |
| Alcon | Health Care Equipment and Services | Switzerland | 7,363 | 1.5 |
| Tractor Supply | Consumer Discretionary Distribution and Retail | United States | 7,140 | 1.5 |
| Azelis | Capital Goods | Belgium | 7,078 | 1.5 |
| Diageo | Food | United Kingdom | 7,024 | 1.4 |
| Top 30 holdings | 379,251 | 77.9 | ||
| Sunbelt Rentals | Capital Goods | United States | 6,899 | 1.4 |
| Elis | Commercial and Professional Services | France | 6,888 | 1.4 |
| Performance Food Group | Consumer Staples Distribution and Retail | United States | 6,770 | 1.4 |
| Contemporary Ampere – A Shares | Electronic and Electrical Equipment | China | 5,704 | 1.2 |
| KKR & Co | Financial Services | United States | 5,649 | 1.2 |
| Icon | Health Care Equipment and Services | Ireland | 5,640 | 1.2 |
| Aviva | Insurance | United Kingdom | 5,623 | 1.2 |
| IMCD | Capital Goods | Netherlands | 5,606 | 1.1 |
| AIB Group | Banks | Ireland | 5,492 | 1.1 |
| Zurich Insurance | Insurance | Switzerland | 5,431 | 1.1 |
| Top 40 holdings | 438,953 | 90.2 | ||
| Madison Air Solutions | Construction and Materials | United States | 5,371 | 1.1 |
| Elevance Health | Health Care Equipment and Services | United States | 5,046 | 1.0 |
| LVMH | Consumer Durables and Apparel | France | 4,996 | 1.0 |
| Amentum | Commercial and Professional Services | United States | 4,960 | 1.0 |
| Amazon | Consumer Discretionary Distribution and Retail | United States | 4,923 | 1.0 |
| Compass | Consumer Services | United Kingdom | 4,705 | 1.0 |
| XPO | Transportation | United States | 4,517 | 0.9 |
| Service Corporation International | Consumer Services | United States | 4,129 | 0.9 |
| Waters | Health Care Equipment and Services | United States | 3,131 | 0.7 |
| Amrize | Construction and Materials | United States | 3,069 | 0.6 |
| Top 50 holdings | 483,800 | 99.4 | ||
| Cochlear | Health Care Equipment and Services | Australia | 2,733 | 0.6 |
| Sberbank3 – ADR | Banks | Russia | – | – |
| Harbinger – Streamline Offshore | Hedge Funds | Cayman Islands | – | – |
| Fund4 | ||||
| Total holdings – 53 (31 May 2025: 43) | 486,533 | 100.0 |
1 MSCI and Standard & Poor’s Global Industry Classification Standard.
2 ADR/ADS: American depositary receipts/shares which 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.
3 The investment in Sberbank has been valued at zero as secondary listings of the depositary receipts on Russian companies have been suspended from trading.
4 This is a residual holding of a previous investment strategy of the Company, which is awaiting realisation of underlying investments. Given lack of availability of recent valuation, the market value has been written-down to zero.
Business Review
Purpose, strategy and business model
Invesco Global Equity Income Trust plc is an investment company. Its purpose is to generate returns for shareholders by investing their pooled capital to achieve its investment objective, which is set out below. The strategy the Board follows to achieve that objective is to set an investment policy, including investment limits, and risk guidelines and to monitor how they are applied. The investment policy is also set out below and has been approved by shareholders.
The Company has no employees. Its business model is 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 has been contracted to manage the Company’s portfolio in accordance with the Board’s strategy and provide company secretarial, sales, marketing, accounting and general administration services. Invesco Asset Management Limited manages the Company’s investments and acts as Company Secretary under delegated authority from its associate company Invesco Fund Managers Limited. References to the ‘Manager’ should consequently be considered to include both entities.
The Company also has contractual arrangements with MUFG Corporate Markets to act as Registrar and The Bank of New York Mellon (International) Limited to act as Depositary and Custodian.
Investment objective
The Company’s investment objective is to provide an attractive level of predictable income and capital appreciation over the long term, predominantly through investment in a diversified portfolio of equities worldwide.
Investment policy
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 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 difference, 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 spreading risk 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).
The investment policy, including the investment limits set out above and below, is intended to ensure that the Company maintains a diversified portfolio of investments which will generate an attractive level of predictable income together with capital appreciation over the long term.
Investment limits
The Board has set the following investment limits which it monitors on an ongoing basis:
- No more than 20% of gross assets will be invested in fixed interest securities.
- No more than 10% of gross assets will be invested in a single investment.
- No more than 15% of gross assets will be invested in other closed-end investment funds that are listed on the FCA’s Official List (‘UK listed investment companies’) which themselves may invest more than 15% of their gross assets in other UK listed investment companies.
- The Company will not borrow more than 20% of its net assets at the time of borrowing (measured as net debt).
All the above limits are applied at the time of acquisition, except gearing which is monitored on a daily basis.
Key performance indicators
The Board uses a number of financial key performance indicators (‘KPIs’) to monitor and assess the performance of the Company in meeting its objectives. The KPIs used are established industry measures and are as set out below.
Performance at a glance
| Year ended | Year ended | |
| 31 May 2026 | 31 May 2025 | |
| Net asset value total returnAPM,1 | 22.2% | 11.9% |
| Share price total return APM,1 | 22.4% | 24.6% |
| Benchmark total return (MSCI World Index (£))APM,1 | 27.5% | 7.4% |
| Revenue return per share | 5.73p | 5.01p |
| Dividends per share | 13.50p | 12.52p |
| Ongoing charges ratio APM | 0.70% | 0.78% |
| Net (cash)/gearing at year end APM | (3.1%) | 0.0% |
1 Source: LSEG Data & Analytics.
APM Alternative Performance Measure. See Glossary of Terms and Alternative Performance Measures on pages 104 to 106 for details of the explanation and reconciliations of APMs.
(a) Performance
The Board monitors the performance of the Company by reference to the net asset value total return and the share price total return against the total return of the Company’s benchmark, which is the MSCI World Index (£). The Board also monitors performance against the total returns of the Company's investment companies peer group and relevant open-ended funds.
The Company’s investment performance is discussed in more detail in the Chair’s Statement on pages 8 to 11 and the Portfolio Managers’ Report on pages 14 to 18. The graph on page 30 plots the net asset value total return and share price total return to shareholders compared to the total return of the Company’s benchmark.
(b) Premium/(discount) to net asset value
The Board has an active approach to managing the level of premium or discount of the share price to the net asset value per share. The Board will continue, in normal market conditions, to actively use its authority to issue or buy-back shares to manage the volatility of the premium or discount. In particular, it is intended that the buy-back authority will be used with the objective of maintaining a discount no wider than mid-single digits on a sustained basis, in normal market conditions.
The average premium/(discount) over the year was 1.4% (2025: (6.9)%). Details of shares issued and bought back during the year are set out in the Directors’ Report on page 51.
| Year ended | Year ended | |
| Premium/(discount) | 31 May 2026 (%) | 31 May 2025 (%) |
| At year end | 1.6 | 1.4 |
| Average over the year | 1.4 | (6.9) |
| Highest in the year | 3.9 | 7.4 |
| Lowest in the year | (5.2) | (14.9) |
Source: LSEG Data & Analytics.
(c) Ongoing charges
The Board monitors the ongoing charges ratio on a regular basis and seeks to ensure that costs are maintained at a competitive level. The ongoing charges ratio is calculated in accordance with the AIC methodology. The significant increase in the Company’s asset base following the FRGT combination has resulted in a reduction in the ongoing charges ratio for the benefit of all shareholders.
| Year ended | Year ended | |
| Ongoing charges | 31 May 2026 (%) | 31 May 2025 (%) |
| Ongoing charges ratio | 0.70 | 0.78 |
Revenue and dividends
Revenue
Revenue earnings per share for the year was 5.73p (2025: 5.01p), based on net revenue for the year of £4,825,000 (2025: £3,140,000).
Dividend policy
Under the Company’s enhanced dividend policy, the Company aims to pay an annual dividend of at least 4% of the unaudited prior financial year-end NAV per share, paid quarterly in equal amounts in August, November, February and May. Dividends are paid from the Company’s revenues and, if required, from the Company’s distributable capital reserves.
The Company’s ability to use distributable capital reserves to supplement portfolio income – a structural advantage of investment trusts – provides the Portfolio Managers with the freedom to select their best investment ideas without being constrained by income targets and resilience through market cycles, even during periods of lower investment income.
Dividends
The NAV per share at 31 May 2025 was 337.36p. In accordance with the Company’s dividend policy, total dividends per share of 13.50p per share (2025: 12.52p) were paid in respect of the year ended 31 May 2026, an increase of 7.8%, marking the Company’s 16th consecutive year of dividend growth. The total dividends represented 4.0% of the unaudited NAV per share at the prior financial year-end and were paid through four equal quarterly interim dividends of 3.375p per share.
The Company is classified as an AIC ‘Next Generation Dividend Hero’, having achieved 16 consecutive years of dividend increases.
Based on the unaudited NAV per share at 31 May 2026 of 397.56p, the Board intends to increase the aggregate dividends for the year ending 31 May 2027 to 16.0p per share, representing an increase of 18.5% or 2.5p per share. The dividends are expected to be paid quarterly in equal amounts and a first interim dividend for the year ending 31 May 2027 of 4.00p per share was declared on 9 July 2026 and paid on 13 August 2026.
Financial position
Assets and liabilities
At 31 May 2026, the Company’s net assets stood at approximately £502 million (2025: £212 million), benefiting from a combination of the successful combination with Franklin Global Trust plc (‘FRGT’) (see page 13), strong investment performance and the issuance of shares to meet investor demand. 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.
Borrowings
The Company has a £70 million multicurrency revolving credit facility with The Bank of New York Mellon, which was renewed and increased from £40 million in April 2026. The facility is used to gear the portfolio in accordance with the Board’s gearing policy of up to 20% of net assets at the time of drawdown. The Board monitors gearing levels on an ongoing basis. At the year end, the bank facility drawn down was £nil (2025: £2,650,000). Details of the Company’s borrowing facility are shown in note 12 to the Financial Statements on page 93, with interest paid (finance costs) in note 5 on page 90.
Issued share capital
On completion of the combination with FRGT on 27 February 2026, 42,424,132 new ordinary shares were issued to former FRGT shareholders. Further details of the combination are set out on page 13. During the year, 17,062,404 shares were sold from treasury and 3,915,596 shares were issued under the Company’s block listing facility. No shares were bought back during the year. Further details of movements in share capital during the year are set out in the Directors’ Report on page 51.
Share price premium/discount management
The Company’s shares will typically trade at a price above (i.e. at a premium to) or below (i.e. at a discount to) their NAV. The Board recognises that a key concern for investors is not only the price at which the Company’s shares trade relative to their NAV, but also the volatility in the premium or discount. Accordingly, the Board seeks, in normal market conditions, to actively use its share issue and buy-back authorities to manage that volatility. In particular, it is the Board’s intention, should the shares be trading at a persistent discount in normal market conditions, to use IGET’s buy-back authority with the objective of maintaining a discount no wider than mid-single digits.
Current and future developments
As part of the Company’s overall strategy, the Company seeks to manage its affairs so as to maximise total returns for shareholders. The key drivers behind shareholder returns are investment performance, the share price premium/discount and the Company’s ongoing charges.
The combination with FRGT has significantly enlarged the Company. The Board has a longer-term objective to continue to increase the size of the Company through a combination of strong investment performance and further share issuance.
A continuation vote will be put to shareholders at the 2026 AGM, as described in the Directors’ Report on page 53 and the Notice of AGM on page 109. The Board unanimously recommends that shareholders vote in favour of the continuation of the Company.
A resolution to cancel the share premium account arising from the FRGT combination and create a distributable special reserve will be proposed at the AGM, subject to approval by the High Court of Justice in England and Wales. Further details are set out in the Directors’ Report on page 50 and in the explanatory notes to special resolution 17 on page 114.
The Board remains confident that the Company’s investment strategy and the skills of the investment team position the Company well to continue to deliver attractive returns to shareholders over the long term. Details of trends and factors likely to affect the future development, performance and position of the Company can be found in the Chair’s Statement on pages 8 to 11 and the Portfolio Managers’ Report on pages 14 to 18.
Section 172 statement and stakeholder engagement
Our stakeholder engagement
Under section 172 of the Companies Act 2006, each Director has a duty to act in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole. In fulfilling this duty, the Board gives careful consideration to the likely long-term consequences of its decisions, the need to foster constructive relationships with the Company’s key stakeholders and the importance of maintaining high standards of business conduct. This was particularly relevant during the year under review, given the combination with FRGT and resulting significant enlargement of the Company’s shareholder base.
Stakeholders
The Board seeks to understand the needs and priorities of the Company’s stakeholders so that these can be taken into account during all its discussions and as part of its decision-making. As the Company is an externally managed investment company with no employees or customers, its key stakeholders comprise its shareholders, the Manager, investee companies, service providers, credit providers and regulators. The section below discusses why these stakeholders are considered of importance to the Company, and the actions taken to ensure that their interests are taken into account.
Decision-making
Stakeholder considerations are embedded in the Board’s decision-making process. At each Board meeting, the Directors assess how the matters under discussion may affect the Company’s shareholders, its relationship with the Manager and its broader stakeholders, with particular regard to the longer-term implications of the decisions taken. The principal decisions taken by the Board during the year, and the stakeholder considerations that informed them, are set out on page 37.
“Effective engagement with our stakeholders is at the heart of how the Board operates. We are committed to understanding the needs of each stakeholder group and ensuring their interests inform every decision we take.”
Sue Inglis
Chair
Shareholders
Continued shareholder support and engagement is critical to the Company and the delivery of its long-term strategy. The year ended 31 May 2026 was a transformational period, with the combination with Franklin Global Trust plc (‘FRGT’) significantly enlarging the Company and broadening its shareholder base.
The Board places considerable importance on engagement with both existing and prospective shareholders. The Board seeks to understand shareholder views and priorities so that these can be reflected in its strategic deliberations and in its ongoing dialogue with the Manager.
Board engagement
The Board engages with shareholders through a number of channels including:
- Annual General Meeting: The Company welcomes and encourages attendance and participation of shareholders at the Annual General Meeting (‘AGM’). Shareholders have the opportunity to meet the Directors and at least one of the Portfolio Managers and to address questions to them directly. The Portfolio Managers give a presentation on the Company’s performance and the future outlook. The 2025 AGM was held on 21 October 2025, and all resolutions were passed with significant majorities.
- AGM notice and questions: 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 not less than 21 clear 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 101.
- Publications and communications: The prime means by which the Company communicates with shareholders are the Annual and Half-Yearly Financial Reports, supplemented by the daily publication of the Company’s net asset value via the London Stock Exchange, ad hoc regulatory announcements, the monthly factsheet and other information on the Company’s dedicated page on the Manager’s website (www.invesco.com/uk/en/investment-trusts/invesco-global-equity-income-trust.html), including pre-investment information, the Key Information Document, shareholder circulars, portfolio disclosures, Stock Exchange announcements and proxy voting results. The Board encourages existing and prospective investors to stay informed by signing up to receive regular email updates on the Company and relevant news and views directly to their inbox (details on how to do this can be found on the inside front cover).
- Investor relations: The Board receives updates at each meeting on share trading activity, share price performance and the premium or discount to net asset value, investor relations activity and feedback from the broker and the Manager’s sales and marketing teams.
- Engagement in connection with the FRGT combination: In the year under review, the Board, principally through the Manager and the Company’s broker, engaged extensively with shareholders of both IGET and FRGT in connection with the combination. A detailed circular was published and shareholder approval was obtained at a General Meeting held in February 2026.
- Shareholder concerns: The Chair and other Directors welcome contact with shareholders. 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. Existing and prospective investors with general enquiries about the Company can contact the Company by email via the Company Secretary at investmenttrusts@invesco.com.
The Manager
The Manager’s performance is critical for the Company to successfully deliver its investment strategy and meet its objective. Invesco Fund Managers Limited acts as the Company’s Alternative Investment Fund Manager, with portfolio management delegated to Invesco Asset Management Limited. The portfolio is managed by Stephen Anness, with Joe Dowling as Deputy Portfolio Manager.
The Board’s relationship with the Manager is central to the delivery of the Company’s investment objective of providing an attractive level of predictable income and capital appreciation over the long term. The Board works collaboratively with the Manager while exercising independent oversight and constructive challenge, with the aim of ensuring that the investment strategy is executed effectively and in the best interests of shareholders.
Board engagement
The Board is in regular contact with the Manager. Important components in the Board’s collaboration with the Manager include:
- having regular interactions with the Portfolio Managers to discuss portfolio positioning, market outlook and the rationale for significant investment decisions;
- receiving detailed portfolio reporting at each Board meeting, enabling the Directors to monitor adherence to investment guidelines;
- fostering a culture of open and candid dialogue, ensuring that the Portfolio Managers have the freedom to pursue high-conviction ideas within the agreed investment parameters;
- drawing on the Directors’ individual experience and knowledge to support and challenge the Manager in its stewardship of investee companies;
- exercising constructive challenge on investment performance, risk management and operational matters, while recognising the broadly aligned interests of the Manager and shareholders;
- meeting with representatives of the Manager’s senior management team to understand wider business and industry developments. Over the year under review the Board met with the Manager’s Senior ETF Client Director to better understand the active ETF market and enhance the Board’s discussions on the Company’s positioning within the broader global equity income fund universe and the Chief Marketing Officer, EMEA and Americas to gain an insight into the Manager’s global marketing initiatives and any learnings that could be used to enhance the Company’s marketing activities;
- the Management Engagement Committee’s annual review of the Manager’s performance, fees and continuing appointment, as reported on page 68; and
- reviewing and, where appropriate, renegotiating the terms of the investment management agreement, including the fee contribution agreed in connection with the FRGT combination (see page 13 for details).
Investee companies
The Company invests in a diversified portfolio of listed equities worldwide. Through its ownership of shares in these companies, the Company has an interest in their long-term sustainable success, including how they manage environmental, social and governance (‘ESG’) matters.
The Manager integrates ESG considerations into its investment analysis and decision making, and actively engages with the management teams of investee companies on material issues.
Board engagement
Day-to-day engagement with investee companies is undertaken by the Manager as part of its investment process. The Board receives regular updates from the Manager on its stewardship activities, including engagement priorities and voting decisions. The Manager exercises the Company’s voting rights in accordance with its published Responsible Investment and Stewardship Policy. Further details on the Manager’s approach to ESG and responsible investment can be found under ‘Environmental, social and governance (‘ESG’) matters’ on pages 37 to 39.
Service providers
In order to function as an investment company with a listing on the London Stock Exchange, the Company relies on a number of key service providers for support in meeting all relevant obligations. These include The Bank of New York Mellon (International) Limited (Depositary and Custodian), MUFG Corporate Markets (Registrar), Cavendish Capital Markets (corporate broker), Dentons UK and Middle East LLP (legal adviser) and Grant Thornton UK LLP (Auditor for the year under review).
Board engagement
The Board maintains regular contact with its key external providers and receives regular reports from them, both through Board and Committee meetings and outside of the regular meeting cycle.
The advice from service providers, as well as their needs and views, are routinely taken into account. The Board, through the Management Engagement Committee, formally assesses the performance, fees and continuing appointment of key service providers annually to ensure that they continue to function at an acceptable level and are appropriately remunerated to deliver the expected level of service. There were no material changes to the levels of service provided by the Company’s third-party suppliers during the financial year.
The Audit Committee reviews and evaluates the control environments in place at the Manager, Depositary and Custodian.
Credit providers
The availability of borrowing facilities supports the Company’s ability to enhance returns through gearing and to manage cash flows efficiently. The Company has a £70 million multicurrency revolving credit facility with The Bank of New York Mellon, as described in the section on the Company’s borrowings on page 33.
Board engagement
The Board monitors the Company’s gearing levels and borrowing arrangements at each meeting. The Board ensures that the Company operates within its borrowing covenants at all times and reviews the terms and renewal of the facility on a regular basis.
The Board seeks to maintain a strong and transparent relationship with its lending counterparty, ensuring that the Company meets all covenant obligations and operates within prudent gearing parameters. The successful renewal and increase of the revolving credit facility to £70 million during the year reflects the lender’s confidence in the Company’s enlarged capital base and its investment approach.
Regulators
The Company can only operate as an investment trust if it conducts its affairs in compliance with the requirements of section 1158 of the Corporation Tax Act 2010, the applicable FCA Rules and the Companies Act 2006. Interaction with regulators, including the FCA, the FRC and HMRC, and with industry bodies such as the AIC, remains an area of Board focus.
Board engagement
The Company regularly considers how it meets its various regulatory and statutory obligations and how any governance decisions it makes can have an impact on its stakeholders. The Board receives reports from the Manager and the 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 able to comment on consultations. Board members regularly attend AIC seminars and other events.
Principal decisions taken during the year
The following are the principal decisions taken by the Board during the year and how the Directors fulfilled their duties under section 172 of the Companies Act 2006.
Combination with Franklin Global Trust plc
- Long-term impact: The combination with FRGT was the most significant strategic decision taken by the Board during the year. The terms and benefits of the combination are set out on page 13.
- Stakeholder considerations and engagement: The Board engaged extensively with the Manager, the Company’s broker and legal advisers and, through the Manager and broker, shareholders of the Company and FRGT throughout the transaction process. A detailed circular was published and shareholder approval was obtained at a General Meeting held in February 2026. The Manager agreed to make a significant contribution towards the costs of the combination, principally for the benefit of existing shareholders and equivalent to 12 months’ management fee on the value of the assets transferred from FRGT.
Share issuance programme
- Long-term impact: Throughout the year, the Company continued to sell its remaining shares held in treasury and issue new shares to satisfy demand in the secondary market. The programme is consistent with the Company’s approach to managing its share price premium or discount (see page 33 for details) and supports the Board’s objective of maintaining an active and liquid market in the Company’s shares and managing the volatility in the share price relative to the NAV per share.
- Stakeholder considerations and engagement: The Board monitors supply and demand dynamics on an ongoing basis, working closely with the Company’s broker, Cavendish Capital Markets. Shares are only sold from treasury or issued at a premium to the prevailing cum-income net asset value, ensuring that existing shareholders’ capital is not diluted.
Discount management
- Long-term impact: The Board kept the rating of the Company’s shares, and the balance between supply and demand in the market, under close review throughout the year. Consistent with the approach agreed in connection with the combination with FRGT, the Board confirmed its intention, in normal market conditions, to use the Company’s share buy-back authority with the objective of maintaining a discount no wider than mid-single digits on a sustained basis. Maintaining a stable rating supports liquidity in the Company’s shares and protects shareholder value over the longer term.
- Stakeholder considerations and engagement: The Board receives regular updates from the Manager and the Company’s broker on trading activity, investor sentiment and the premium or discount to net asset value. Although the shares traded at a premium for much of the year and no buy-backs were therefore required, the Board was mindful of the success of the share issuance programme and the importance of managing the volatility in the discount or premium and concluded that it would be in the interests of existing and prospective shareholders to amend the Company’s approach to managing any discount by setting a discount target in normal market conditions no wider than mid-single digits (the previous target was simply single digits).
Appointment of new Auditor
- Long-term impact: Following a formal competitive audit tender, the Board endorsed the Audit Committee’s recommendation to appoint Johnston Carmichael LLP as the Company’s Auditor for the year ending 31 May 2027. The appointment of a new Auditor with deep investment company sector expertise supports the continued integrity of financial reporting.
- Stakeholder considerations and engagement: The audit tender was conducted in accordance with mandatory Auditor rotation requirements. The Audit Committee evaluated, with the assistance of the Manager, each participating firm against criteria including audit quality, sector experience, team expertise, cultural fit and fee levels. A resolution to approve the appointment will be put to shareholders at the 2026 AGM.
Renewal and increase of bank facility
- Long-term impact: During the year, the Board reviewed the Company’s borrowing arrangements in light of the significant increase in net assets arising from the combination with FRGT. The Board approved the renewal of the Company’s multicurrency revolving credit facility with The Bank of New York Mellon and its increase from £40 million to £70 million, with the facility extended to 21 April 2027. The enlarged facility provides the Portfolio Managers with greater flexibility to use gearing to enhance returns when appropriate, subject to the Board’s gearing policy of up to 20% of net assets which is monitored daily, and appropriately reflects the Company’s materially larger capital base following the combination.
- Stakeholder considerations and engagement: The Board engaged with the Company’s lending counterparty, the Manager and its advisers in reviewing the terms, size and cost of the facility. In determining the appropriate level of borrowing capacity, the Board had regard to shareholders’ interests in maintaining a prudent facility scaled to the enlarged Company’s net assets, while ensuring continued compliance with all covenant obligations. The successful renewal and increase of the facility reflects the lender’s confidence in the Company’s enlarged capital base and its investment approach.
Environmental, social and governance (‘ESG’) matters
Investment stewardship and sustainability-related matters
The Company has delegated the management of its investments, including investment stewardship, to the Manager.
The Manager is a 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 current UK Stewardship Code Report, which sets out how it approaches stewardship and provides the framework within which its stewardship activities are governed, resourced and overseen, is available at https://www.invesco.com/content/dam/invesco/uk/en/pdf/invesco-uk-stewardship-code-report-2025_en-uk.pdf.
The Manager has adopted a clear and considered policy towards its responsibility as an investor 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 does not seek to intervene in daily management decisions, but aims 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 and the Manager exercises the Company’s voting rights on an informed and independent basis.
The Manager forms part of the Invesco Limited group, which is a signatory to the United Nations Principles for Responsible Investment (‘PRI’). Invesco scored four stars for its Investment & Stewardship Policy in its most recent PRI assessment. In addition, Invesco is an active member of the UK Sustainable Investment and Finance Association as well as a supporter of the Task Force on Climate-related Financial Disclosure (‘TCFD’) since 2019 and Invesco’s latest Global TCFD Report is available at www.invesco.com/content/dam/invesco/emea/en/pdf/ivz_global-tcfd-report.pdf.
Although ESG integration forms part of the investment process, the Company is not managed to sustainable ESG objectives, constraints or outcomes. The Manager’s focus as active portfolio managers is on finding mispriced stocks, with ESG integration underpinning the investment process. ESG factors are considered as inputs into the wider investment process as part of a holistic consideration of investment risk and opportunity, from valuation through to engagement and monitoring. The core aspects of the Manager’s ESG philosophy include: materiality, being the consideration of ESG issues that are financially material to the company being analysed; ESG momentum, which captures the degree of improvement of ESG practices over time and can indicate favourable financial performance in the longer term; and engagement, which the Manager sees as an opportunity to encourage continual improvement through board level dialogue on management, corporate strategy, transparency, capital allocation and wider ESG aspects.
ESG integration is an ongoing strategic effort embedded across the Manager’s five-stage investment process: idea generation, fundamental research, portfolio construction, ongoing monitoring and risk assessment. The investment team’s analysis is supported by internal and external systems and resources. The Manager does not apply rigid exclusionary screening or minimum ESG thresholds; rather, what matters is that the investment team can evidence understanding of ESG issues and show they have been taken into consideration when building the investment case.
The Manager’s ESG interactions with companies typically occur in group or 1:1 calls between fund managers/analysts and corporate representatives. The investment team strives to meet with companies in order to better understand the management team and their focus and outlook, and to raise any concerns and suggestions; this can often cover ESG.
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 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.
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.
The TCFD reports are available as follows:
The product level TCFD report on the Company is available at www.invesco.com/content/dam/invesco/uk/en/product-documents/investment-trust/fund/esg/invesco-global-equity-income_tcfd-report_en-uk.pdf.
Invesco’s Group Level TCFD Report is available at www.invesco.com/content/dam/invesco/emea/en/pdf/ivz_global-tcfd-report.pdf.
The Manager’s Entity Level TCFD Report is available at www.invesco.com/content/dam/invesco/emea/en/pdf/IFML_and_IAML_tcfd-entity-level_report.pdf.
Total ESG engagements - year to 31 May 2026
| Company meetings | 113 | |
| Meetings where E/S/G discussed | 41 | |
| Combinations of E/S/G | 4 | |
| E only | 3 | |
| S only | 1 | |
| G only | 33 | |
| % of times E/S/G discussed | 36 |
Source: Invesco, data relates to the Henley-based Global Equities team for the period 1 June 2025 to 31 May 2026.
Voting policy
The Global Equities Team’s corporate engagement specialists review AGM and EGM proposals taking into account their knowledge of the companies in which the Company’s funds are invested, as well as the comments and recommendations of ISS (Institutional Shareholder Services), Glass Lewis and IVIS (Institutional Voting Information Service). In addition, Invesco provides proprietary proxy voting recommendations via its PROXYintel platform. Where there are situations of controversy or differing views, the investment team draws on the additional expertise of Invesco’s internal ESG team. Voting in line with management recommendations should not be seen as evidence of a lack of challenge, but rather that the governance of the companies in which the Company is invested is already good and worthy of support, or the investment team has engaged with the company and concerns have been addressed satisfactorily.
The Board has delegated responsibility for the exercise of voting rights attaching to the Company’s investments to the Manager, which exercises votes in accordance with Invesco’s Policy Statement on Global Corporate Governance and Proxy Voting which is available at www.invesco.com/content/dam/invesco/corporate/en/pdfs/regulatory/global-proxy-voting-policy.pdf.
A summary of voting activity is reported to the Board at each meeting.
Company voting – year to 31 May 2026
| Category | Total number | Total (%) |
| Ballots voted | 47 | 100 |
| Ballots against management recommendations | 10 | 21 |
| Ballots against ISS recommendations | 15 | 32 |
Source: Invesco, relates to the period 1 June 2025 to 31 May 2026.
Greenhouse gas emissions
A greenhouse gas emissions statement is included in the Directors’ Report on page 52.
Modern slavery
As an investment company, 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.
Conclusion
The regulatory and sustainability landscape continues to evolve, which increasingly compels organisations and investors alike to clearly demonstrate their awareness of sustainability-related matters in their decisions. The Manager believes that its approach is fair, coherent and pragmatic. Whilst ESG aspects are considered, the Manager is not bound by any specific ESG criteria and retains the flexibility to invest across the ESG spectrum, using engagement to encourage positive change over time. Coupling this with a focus on valuation is, in the Manager’s view, the best way to deliver strong investment outcomes for shareholders’ over the long term. This reinforces the 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.
Principal risks and uncertainties
Risk management framework
The Board has overall responsibility for risk management and internal controls. In discharging this responsibility, the Board has established a structured risk management framework designed to identify, evaluate and manage the principal and emerging risks facing the Company. The framework is based on a comprehensive Risk Control Document maintained by the Manager and reviewed by the Audit Committee at least bi-annually. The Risk Control Document records each identified risk together with its risk category, inherent risk rating, the controls and mitigating factors in place, the residual risk rating after application of those controls, the risk trend compared to the prior year and the designated risk owner. The Board’s risk appetite is formally defined, reviewed, agreed and documented annually.
Role of the Audit Committee
The Audit Committee undertakes a robust assessment of the principal and emerging risks facing the Company on behalf of the Board, including those that could threaten the Company’s business model, future performance, solvency, reputation or liquidity. This assessment is informed by semi-annual internal control reports from the Manager, the Depositary’s annual report, annual service organisation control reports from key service providers and the Company’s Auditor’s findings. The Audit Committee reports its conclusions to the Board after each meeting. Further details of the Audit Committee’s work during the year are set out in its Report on pages 63 to 67.
The Manager’s role
The Company has no employees and is reliant on the Manager for all investment management, administrative and operational activities. The Manager maintains its own risk management and internal control systems, including an internal audit and dedicated risk and compliance function. The Manager reports on these matters to the Audit Committee semi-annually, with interim updates between meetings where warranted.
Monitoring and reporting
The Board receives detailed reports at each quarterly meeting covering portfolio performance against the benchmark and peer group, discount and premium monitoring, revenue forecasts and distributable reserves analysis, sensitivity analysis, regulatory compliance and updates on the regulatory and political environment. Between meetings, the Chair and the Audit Committee Chair receive prompt notification of any material risk events. The Board also monitors risk through regular engagement with the Company’s broker, its membership of the Association of Investment Companies (‘AIC’), and external legal and tax advisers. Further details on financial risk management, including market risk, credit risk and liquidity risk, are set out in note 16 to the Financial Statements on pages 95 to 99.
2026 risk environment
In carrying out the annual assessment, the Board and the Audit Committee have given particular attention to a number of developments during the year and to subsequent events. These include: the escalation of the Middle East conflict during the year, including the closure of the Strait of Hormuz and the associated disruption to global energy markets and trade flows; the further deterioration since the year end, with the phased reopening initiated under the memorandum of 19 June 2026 having stalled, the widening of the conflict towards the Red Sea and the Bab el-Mandeb strait and interruption to alternative energy export routes, all of which continue to weigh on energy markets; the continued concentration of global equity market returns in a narrow group of AI-related and mega-cap technology stocks; and the forthcoming continuation vote at the Annual General Meeting on 21 October 2026.
Summary of principal risks
The principal risks identified by the Board are set out in the table below, grouped into three categories: Market and Investment Risks; Operational Risks; and Regulatory, Tax and Governance Risks. This categorisation is informed by the Company’s Risk Control Document and is intended to help shareholders understand how the Board organises its oversight of these risks.
Risk trend key (see full Annual Financial Report for details).
| Market and investment risks | |
| Market and geopolitical risk | |
| Description Global equity markets are exposed to macroeconomic conditions, geopolitical events and investor sentiment. During the year, this risk increased significantly due to the escalation of the Middle East conflict, including the closure of the Strait of Hormuz, which disrupted approximately 20% of global seaborne oil trade. The position has deteriorated further since the year end. The phased reopening initiated under the memorandum of 19 June 2026 has stalled and transits through the Strait of Hormuz remain far below pre-conflict levels. The conflict has also widened geographically: Iran-aligned forces have advanced along Yemen's Red Sea coast and towards the Bab el-Mandeb strait, placing at risk the principal alternative route to the Gulf, while attacks on Saudi Arabian energy infrastructure have interrupted a key overland export pipeline. Together these developments have kept energy prices elevated, heightened volatility across global markets and increased the associated risk of stagflation. The continued concentration of global equity market returns in a narrow group of AI-related and mega-cap technology stocks introduces an additional vector of market risk. The Company continues to hold shares in Sberbank of Russia which have been valued at £nil since the imposition of international sanctions in 2022. There was no change in the status of this holding during the year. | Mitigating controls The Board recognises that the Company cannot fully insulate itself from broader market movements. The Manager incorporates an assessment of these external factors into the investment process, and the Board monitors the resulting portfolio positioning at each quarterly meeting. The portfolio is constructed to be well-diversified by geography, sector and individual holding. The Board reviews the Manager’s performance on a continuous basis and conducts a formal annual assessment of the Manager’s continuing appointment. As an investment trust, the Company benefits from a closed-end structure, which means the Manager is not subject to forced sales during periods of market stress and can take a long-term view. |
| Investment performance risk | |
| Description Sustained underperformance relative to the Company’s benchmark and AIC Global Equity Income peer group could result in a persistent discount to NAV and reduced demand for the Company’s shares. The Company’s valuation-focused investment approach may lag in strongly momentum-driven or narrow markets – a structural feature of high-conviction, diversified active management. | Mitigating controls The Board monitors the Company’s investment returns against the benchmark index, the AIC Global Equity Income sector and comparable open-ended funds over multiple time horizons. Performance attribution analysis is reviewed at each Board meeting to understand the drivers of relative returns. An annual strategy day provides the Board with the opportunity to examine the Manager’s investment approach, portfolio construction and outlook in detail. The Board also maintains an active dialogue with the Company’s broker on shareholder sentiment and demand for the Company’s shares. |
| Currency risk | |
| Description A substantial proportion of the Company’s assets are denominated in currencies other than sterling, principally US dollars. During the year, sterling/US dollar volatility was elevated, with the dollar initially weakening against sterling on tariff uncertainty and Middle East geopolitical developments in the first half of the financial year before recovering materially in the second half on a hawkish Federal Reserve repricing and a stabilising US labour market. Wide and unpredictable currency moves can have a material impact on the Company’s reported returns in sterling terms. | Mitigating controls The Board reviews the portfolio’s geographic allocation and the resulting currency exposures at each quarterly meeting. The Company’s policy is that foreign currency exposures are generally left unhedged, reflecting the Board’s view that over the long term currency effects tend to balance out. The Manager retains the discretion to implement hedging arrangements where the Board or the Manager considers it prudent to do so. |
| Discount and share rating risk | |
| Description The Company’s shares may trade at a discount or premium to NAV. While the shares traded at a premium for much of the year, reflecting strong demand, this may not be sustained in periods of weaker performance or adverse market conditions. Sector-wide discounts across the investment company industry remain elevated. | Mitigating controls The Board closely monitors the level of discount or premium at which the Company’s shares trade relative to their NAV. The Company operates an active discount management policy, targeting a discount no wider than mid-single digits on a sustained basis in normal market conditions, and uses its share buy-back and issuance authorities to manage the share rating in shareholders’ interests. The Manager and the Company’s broker provide the Board with regular updates on trading activity, investor sentiment and the effectiveness of investor relations activities. The Board seeks to ensure that the Company’s investment proposition is communicated effectively to existing and prospective shareholders. |
| Income and dividend sustainability | |
| Description The Board’s enhanced dividend policy targets at least 4% of the unaudited prior financial year-end NAV, paid quarterly. Revenue return is expected to be below total dividends paid, with the shortfall funded from the Company’s distributable capital reserves. There is a risk that distributable reserves are depleted over time, that portfolio income falls materially or that the Company’s track record of consecutive annual dividend increases is interrupted. | Mitigating controls The Board reviews the Manager’s revenue forecasts and the Company’s distributable capital reserves position at each quarterly meeting. The Manager prepares stress-tested income projections at least annually to support the Board’s dividend planning. The portfolio’s income stream is spread across a range of geographies, sectors and currencies to reduce dependence on any single source of dividend income. At 31 May 2026, the Company had distributable capital reserves of £287.3 million, equivalent to approximately 14 times the anticipated aggregate annual dividends for the year ending 31 May 2027. The proposed cancellation of the Company’s share premium account, which had a balance of £176.4 million at 31 May 2026, is subject to shareholder and Court approval. If approved, it would add a further 9 times annual dividend cover and increase total distributable capital reserves to £463.7 million, equivalent to approximately 23 times the anticipated aggregate annual dividends for the year ending 31 May 2027, based on the number of shares in issue at 31 May 2026. |
| Gearing and leverage risk | |
| Description The Company has access to a revolving credit facility which may be drawn to enhance returns. Gearing magnifies both gains and losses in the portfolio. In the current environment, elevated energy prices and associated inflationary pressures could result in higher borrowing costs, while a sustained market decline could result in a breach of borrowing covenants. Interest rate risk arises on any drawn borrowings. | Mitigating controls The Board determines borrowing policy and sets the parameters within which the Manager may operate. The Manager monitors covenant compliance on an ongoing basis when the facility is drawn. Gearing levels and covenant compliance are reported to the Board at each meeting. In the current environment, the Manager has maintained a cautious stance towards the use of borrowings and, at the date of this Report, the facility remains undrawn. The Board reviews the cost and terms of the Company’s borrowing facility on an ongoing basis. |
| Operational risks | |
| Cyber security and external disruption | |
| Description The threat of cyber-attack continues to evolve and the Board recognises that the financial services sector remains a target for cyber-crime and ransomware. Geopolitical tensions continue to contribute to an elevated threat environment, with ongoing state-sponsored cyber activity. This risk also encompasses the potential for broader external events, including pandemic, terrorism and geopolitical developments, to disrupt the operations of the Company’s service providers. | Mitigating controls As the Company has no employees or physical operations of its own, all cyber risk resides with its third-party service providers. The Audit Committee oversees the Manager’s approach to information security, including the adequacy of its cyber defences, staff training and incident response capabilities. Independent assurance on the control environments of key service providers is obtained through annual service organisation control reports. The Board requires confirmation that critical operations, including portfolio management, can continue to function effectively in the event of a significant disruption, and equivalent assurances are sought from all material service providers. |
| Operational and third-party service provider risk | |
| Description The Company has no employees and is dependent on the Manager, the Administrator, the Custodian and the Company Secretary for all operational activities. Any failure of systems, internal controls or processes at a key service provider could result in financial loss, inaccurate reporting or reputational damage to the Company. | Mitigating controls The Board receives semi-annual reports from the Manager on its operational and control environment. The Audit Committee reviews independent service organisation control reports from each material service provider at least annually and monitors their business continuity arrangements. The Board, through the Management Engagement Committee, formally evaluates their performance and the terms of their continuing appointment at least annually. |
| Regulatory, tax and governance risks | |
| Regulatory and tax risk | |
| Description The Company operates within a complex and evolving regulatory environment. Loss of investment trust status under section 1158 of the Corporation Tax Act 2010 would result in the Company’s capital gains being subject to UK corporation tax. | Mitigating controls The Board receives regular assurance from the Manager and the Company’s independent tax adviser that the Company continues to meet the conditions required to maintain its investment trust status. The Board monitors the regulatory environment through its membership of the AIC and takes advice from external legal and tax advisers on material developments. Implementation plans are prepared for significant regulatory changes with sufficient lead time to ensure an orderly transition. |
| Continuation vote | |
| Description A continuation resolution will be proposed at the Annual General Meeting on 21 October 2026. Should the resolution not be passed, the Directors would bring forward proposals regarding the Company’s future direction for shareholder approval. | Mitigating controls The Board has no reason to believe the resolution will not be passed, reflecting the Company’s sustained premium share rating, active share issuance programme, the increased scale and liquidity following the combination with Franklin Global Trust plc and the Company’s strong long-term performance track record. The going concern assessment specifically considers the outcome of the continuation vote. |
Emerging risks
The Board also monitors a number of emerging risks that could, over time, develop into principal risks. These include: the rapid development and adoption of artificial intelligence technologies, which could create both opportunities and risks across the portfolio, including the risk of a correction in AI-related valuations; and the evolving nature of the cyber threat, including the potential for AI-enabled attacks and deepfake-based social engineering to increase in sophistication and scale. The Board keeps these emerging risks under regular review and will escalate them to principal risk status if warranted.
The Company’s viability
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 has assessed the Company’s viability over a three-year period in accordance with Provision 31 of the 2024 AIC Code of Corporate Governance.
The Board has a reasonable expectation that, notwithstanding the upcoming continuation vote, 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.
In making this assessment, the Board has considered the following:
Business model and financial position:
- The Company’s investment objective, strategy and policy, which are subject to regular Board monitoring, mean that the Company is invested predominantly in readily realisable, listed securities and that the level of borrowings is restricted.
- The Company is a closed-ended investment company and, therefore, does not suffer from the liquidity issues arising from unexpected redemptions.
- The combination with FRGT significantly enlarged the Company’s capital base to approximately £462 million (at the time of the combination), improving liquidity and reducing the ongoing charges ratio.
- The Company retains title to all assets held by its Custodian and Depositary, The Bank of New York Mellon (International) Limited.
- The Company’s £70 million multicurrency revolving credit facility with The Bank of New York Mellon, described on page 33, was renewed in April 2026. The Company has complied with all covenants throughout the year and up to the date of this Report.
- Revenue and expenditure forecasts are reviewed by the Board at each meeting. The Company’s ongoing charges ratio is competitive within its peer group.
- Cash is held only with approved counterparties in accordance with the Company’s treasury management policy.
Principal risks and stress testing:
The Board has carried out a robust assessment of the principal risks and uncertainties which could threaten the Company’s business model, including future performance, liquidity and solvency. These risks, their mitigations and processes for monitoring them, are set out on pages 40 to 44.
The principal risks identified as relevant to the viability assessment were those relating to the risk of failure to meet the Company’s investment objective, contributory market and investment risks and any threats to the security of the Company’s assets. The Board considered stressed scenario-testing for both income and loan covenants, the borrowing structure, the level of gearing and the liquidity of the portfolio.
Geopolitical and economic environment:
The Directors also considered changes in the international political landscape and geopolitical conflicts, including the potential effects of trade tariffs and sanctions. The Board does not believe that these will have a long-term impact on the viability of the Company and its ability to continue in operation, notwithstanding the short-term uncertainty they have caused in markets.
Continuation vote:
A continuation vote will be put to shareholders at the Annual General Meeting on 21 October 2026. The Board unanimously recommends that shareholders vote in favour of continuation. The Board does not consider that the continuation vote gives rise to a material uncertainty about the Company’s ability to continue as a going concern, having regard to the Company’s strong long-term performance track record and premium share price rating. Should the resolution not be passed, the Directors would bring forward proposals regarding the Company’s future direction for shareholder approval.
Going concern
The Directors’ assessment of the Company’s position as a going concern is set out in the Directors’ Report as extracted below.
At each Board meeting, the Directors review the Company’s performance, financial position, portfolio of investments, cash balances, income projections and ongoing liabilities. In preparing the Financial Statements, the Board has made a formal assessment of the Company’s ability to continue as a going concern for a period of at least 12 months from the date on which the Financial Statements are approved.
The assessment took into account the Company’s portfolio, which at 31 May 2026 comprised predominantly listed equity securities that are readily realisable under normal market conditions. The Board also considered the Company’s borrowing arrangements, its compliance with all applicable covenants and its revenue and expenditure forecasts. Stress testing scenarios were reviewed, including the potential downside effects of a fall in the valuation of the investment portfolio or levels of investment income.
The Directors are mindful of the broader economic and geopolitical landscape, including elevated trade policy uncertainty, the persistence of armed conflicts in several regions and the potential for further disruption to global supply chains and capital markets. While these factors create an environment of heightened unpredictability, the Board is satisfied that the Company’s diversified portfolio, its access to borrowing facilities and the liquid nature of its investments provide adequate resilience.
A continuation resolution will be proposed at the Annual General Meeting on 21 October 2026. The Board is confident, based on the Company’s performance, the premium to NAV at which the Company’s shares continue to trade, the frequent issuance of the Company’s shares, the views of the Company’s broker and shareholder engagement undertaken during the year, that the resolution will receive the requisite support. The continuation resolution does not involve any return of capital, redemption facility or tender offer. Its purpose is to provide shareholders with a regular opportunity to express their views on the Company’s strategy, performance and ongoing existence. Regardless of the outcome of the continuation vote, the Company will retain sufficient resources to discharge all obligations as they fall due. A vote in favour will allow the Company to continue pursuing its current investment objective and strategy. Should the resolution not be passed, the Directors would bring forward proposals regarding the Company’s future direction for shareholder approval.
Having considered all relevant factors, the Directors have concluded that the Company has adequate resources to continue in operational existence for the foreseeable future and, therefore, have adopted the going concern basis in preparing the Financial Statements. No material uncertainties have been identified that would cast significant doubt on this conclusion.
Approval
The Business Review was approved by the Board of Directors on 22 September 2026.
James Poole
Senior Company Secretary
Invesco Asset Management Limited
Corporate Company Secretary
22 September 2026
Statement of Directors’ Responsibilities
The Directors are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have elected to prepare the Financial Statements in accordance with United Kingdom Accounting Standards and applicable law, 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 the Financial Statements, the Directors are required to:
- present a true and fair view of the financial position, financial performance and cash flows of the Company;
- present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
- elect suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable United Kingdom 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 also responsible for preparing the Strategic Report, the Directors’ Report, the Directors’ Remuneration Report and the Corporate Governance Statement in accordance with the Companies Act 2006 and applicable regulations, including the requirements of the UK Listing Rules and the Disclosure Guidance and Transparency Rules.
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 enable them to ensure that the Financial Statements and the Directors’ Remuneration Report comply with the Companies Act 2006.
The Directors are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The AIC Corporate Governance Code requires Directors to ensure that the Annual Report and Financial Statements are fair, balanced and understandable. In order to reach a conclusion on this matter, the Board has requested that the Audit Committee advises on whether it considers that the Annual Report and Financial Statements fulfil these requirements. The process by which the Audit Committee has reached its conclusion is set out in its report on pages 63 to 67.
Website publication
The Directors are responsible for ensuring the Annual Report and the Financial Statements are made available on a website. Financial statements are published on the Company’s dedicated page on the Manager’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The Directors have delegated responsibility to the Manager for the maintenance and integrity of the Company’s corporate and financial information included on the Company’s dedicated page on the Manager’s website. The Directors’ responsibility also extends to the ongoing integrity of the financial statements contained on that page.
Responsibility statement
The Directors’ Report on pages 48 to 53 of this Annual Financial Report has been approved by the Board. The Directors have chosen to include information relating to the future development of the Company, and the Company’s relationships with its stakeholders and the impact of those relationships on the Board’s decisions, within the Strategic Report on pages 33 to 37.
Each of the Directors, whose names and functions are listed on pages 46 and 47, confirms that, to the best of their knowledge:
- the Financial Statements, prepared in accordance with United Kingdom Accounting Standards, including FRS 102, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company;
- the management report, which is incorporated in the Strategic Report and Directors’ 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 the Company faces; and
- the Annual Report and Financial Statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company’s position, performance, business model and strategy.
This responsibility statement was approved by the Board on 22 September 2026 and is signed on its behalf by:
Sue Inglis
Chair
22 September 2026
Income Statement
| Year ended 31 May 2026 | Year ended 31 May 2025 | ||||||
| Revenue | Capital | Total | Revenue | Capital | Total | ||
| Notes | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Gains on investments held at fair value | 9 | – | 58,413 | 58,413 | – | 20,482 | 20,482 |
| Losses on foreign exchange | – | (120) | (120) | – | (4) | (4) | |
| Income | 2 | 6,573 | – | 6,573 | 4,379 | – | 4,379 |
| Investment management fees | 3 | (442) | (1,032) | (1,474) | (332) | (775) | (1,107) |
| Other expenses | 4 | (683) | (424) | (1,107) | (563) | 6 | (557) |
| Net return before finance costs and taxation | 5,448 | 56,837 | 62,285 | 3,484 | 19,709 | 23,193 | |
| Finance costs | 5 | (72) | (169) | (241) | (50) | (116) | (166) |
| Return before taxation | 5,376 | 56,668 | 62,044 | 3,434 | 19,593 | 23,027 | |
| Tax | 6 | (551) | – | (551) | (294) | – | (294) |
| Return after taxation for the financial year | 4,825 | 56,668 | 61,493 | 3,140 | 19,593 | 22,733 | |
| Return per ordinary share (basic and diluted) | 7 | 5.73p | 67.33p | 73.06p | 5.01p | 31.29p | 36.30p |
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.
Statement of Changes in Equity
| Capital | ||||||||
| Share | Share | redemption | Special | Capital | Revenue | |||
| capital | premium | reserve | reserve | reserve | reserve | Total | ||
| Notes | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| At 31 May 2024 | 800 | – | 1,285 | 113,296 | 82,072 | 102 | 197,555 | |
| Shares bought back and held in treasury | 13 | – | – | – | (4,270) | – | – | (4,270) |
| Shares sold from treasury | 13 | – | – | – | 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 | |
| Shares sold from treasury | 13 | – | – | – | 63,024 | – | – | 63,024 |
| Return after taxation per the income statement | – | – | – | – | 56,668 | 4,825 | 61,493 | |
| Dividends paid | 8 | – | – | – | (6,595) | – | (4,825) | (11,420) |
| Net proceeds from issue of new shares | 13 | 39 | 15,176 | – | – | – | – | 15,215 |
| Issue of new ordinary shares in respect of the combination with | ||||||||
| Franklin Global Trust plc | 13 | 424 | 161,619 | – | – | – | – | 162,043 |
| Costs in relation to issue of ordinary shares | – | (374) | – | – | – | – | (374) | |
| Costs in relation to cancellation of share | ||||||||
| premium account | – | (51) | – | – | – | – | (51) | |
| At 31 May 2026 | 1,263 | 176,370 | 1,285 | 164,962 | 158,333 | – | 502,213 |
Balance Sheet
| At 31 May 2026 | At 31 May 2025 | ||
| Notes | £’000 | £’000 | |
| Fixed assets | |||
| Investments held at fair value through profit or loss | 9 | 486,533 | 211,444 |
| Current assets | |||
| Debtors | 10 | 19,278 | 1,314 |
| Cash and cash equivalents | 15,560 | 2,618 | |
| 34,838 | 3,932 | ||
| Creditors: amounts falling due within one year | |||
| Other creditors | 11 | (19,156) | (443) |
| Bank facility | 12 | – | (2,650) |
| Bank overdraft | 12 | (2) | – |
| (19,158) | (3,093) | ||
| Net current assets | 15,680 | 839 | |
| Net assets | 502,213 | 212,283 | |
| Capital and reserves | |||
| Share capital | 13 | 1,263 | 800 |
| Share premium | 14 | 176,370 | – |
| Capital redemption reserve | 14 | 1,285 | 1,285 |
| Special reserve | 14 | 164,962 | 108,533 |
| Capital reserve | 14 | 158,333 | 101,665 |
| Shareholders’ funds | 502,213 | 212,283 | |
| Net asset value per ordinary share | 15 | 397.55p | 337.36p |
The Financial Statements were approved and authorised for issue by the Board of Directors on 22 September 2026.
Signed on behalf of the Board of Directors
Sue Inglis
Chair
Company No. 05916642
Cash Flow Statement
| Year ended | Year ended | ||
| 31 May 2026 | 31 May 2025 | ||
| Notes | £’000 | £’000 | |
| Cash flow from operating activities | |||
| Net return before finance costs and taxation | 62,285 | 23,193 | |
| Tax paid on overseas income | 6 | (551) | (294) |
| Purchase of investments1 | (414,888) | (137,107) | |
| Sale of investments | 350,749 | 141,822 | |
| Gains on investments | 9 | (58,413) | (20,482) |
| Increase in debtors | (654) | (212) | |
| Increase/(decrease) in creditors | 234 | (120) | |
| Net cash (outflow)/inflow from operating activities | (61,238) | 6,800 | |
| Cash flow from financing activities | |||
| Interest paid on bank borrowings | (226) | (176) | |
| (Decrease)/increase in bank facility2 | (2,650) | 2,650 | |
| Gross proceeds from issue of new shares | 15,266 | – | |
| Costs in relation to issue of new shares | (51) | – | |
| Cash proceeds from the combination with Franklin Global Trust plc | 22 | 10,099 | – |
| Costs in relation to issue of ordinary shares | (374) | – | |
| Shares bought back and held in treasury | – | (4,270) | |
| Shares sold from treasury | 63,534 | 3,600 | |
| Equity dividends paid | 8 | (11,420) | (7,845) |
| Net cash inflow/(outflow) from financing activities | 74,178 | (6,041) | |
| Net increase in cash and cash equivalents | 12,940 | 759 | |
| Cash and cash equivalents at the start of the year | 2,618 | 1,859 | |
| Cash and cash equivalents at the end of the year | 15,558 | 2,618 | |
| Reconciliation of cash and cash equivalents to the balance sheet is as follows: | |||
| Cash held at Custodian | 1,083 | 618 | |
| Invesco Liquidity Funds plc – Sterling, money market fund | 14,475 | 2,000 | |
| Cash and cash equivalents | 15,558 | 2,618 | |
| Cash flow from operating activities includes: | |||
| Interest received | 33 | 27 | |
| Dividends received | 5,197 | 3,662 |
1 The £151,944,000 of investments acquired from Franklin Global Trust plc has been excluded from purchases of investments in the cash flow statement because the consideration was satisfied through the issue of shares. The transaction is separately disclosed in notes 9, 13 and 22.
2 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 (decrease)/increase over the year rather than the gross repayments and drawdowns separately, as defined in FRS 102 section 7.10A (b).
The accompanying accounting policies and notes are an integral part of these Financial Statements.
Notes to the Financial Statements
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 for 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 52.
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 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 other than in connection with the scheme of reconstruction detailed below.
Issue of shares pursuant to a scheme of reconstruction of Franklin Global Trust plc (‘FRGT’)
On 27 February 2026, the Company issued new ordinary shares to shareholders of FRGT in consideration for the receipt by the Company of assets (being a combination of investments and cash) pursuant to a scheme of reconstruction and liquidation of FRGT. The Directors have considered the substance of the assets and activities of FRGT in determining whether this asset acquisition arising from the combination (the ‘acquisition’) represents the acquisition of a business. The acquisition is not judged to be an acquisition of a business due to only assets being transferred, no substantive processes being acquired and the fair value being concentrated in one group of similar assets and, therefore, has not been treated as a business combination. Rather, the cost to acquire the assets of FRGT has been allocated between the acquired identifiable assets based on their relative fair values on the acquisition date. All assets were acquired at their fair value. The value of the assets received, in exchange for shares issued by the Company, has been recognised in investments held at fair value through profit or loss and cash and cash equivalents as shown in the balance sheet. Direct costs in respect of the shares issued have been recognised in share premium, whereas other professional costs in relation to the acquisition have been recognised as transaction costs included within capital expenses shown in note 4. The 12-month Manager fee waiver contribution to the acquisition directly reduces the investment management fee otherwise payable based on the value of assets acquired from FRGT (see note 3).
(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.
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. Special dividends are taken to revenue unless they arise from a return of capital, when they are allocated to capital in the income statement.
(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 at 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. The Company has been so approved.
(h) Segmental reporting
The Directors are of the opinion that the Company is engaged in a single segment of business, being investment business.
2. Income
This note shows the income generated from the portfolio (investment assets) of the Company and income received from any other source.
| 2026 | 2025 | |
| £’000 | £’000 | |
| Income from investments: | ||
| UK dividends: | ||
| – ordinary dividends | 1,710 | 844 |
| 1,710 | 844 | |
| Overseas dividends | ||
| – ordinary dividends | 4,830 | 3,227 |
| – special dividends | – | 282 |
| 4,830 | 3,509 | |
| Other income: | ||
| Deposit interest | 33 | 26 |
| Total income | 6,573 | 4,379 |
Special dividends recognised as revenue for the year are as shown above. No special dividends have been recognised in capital during the year (2025:£nil).
3. Investment management fees
This note shows the investment management fee due to the Manager, which is calculated and paid quarterly.
| 2026 | 2026 | 2026 | 2025 | 2025 | 2025 | |
| Revenue | Capital | Total | Revenue | Capital | Total | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Investment management fee1 | 442 | 1,032 | 1,474 | 332 | 775 | 1,107 |
| 442 | 1,032 | 1,474 | 332 | 775 | 1,107 |
Details of the investment management agreement are given on pages 49 and 50 in the Directors’ Report.
1 Investment management fee for year ended 31 May 2026 is a net fee which includes a time-apportioned part of the 12-month fee waiver from the Manager equating to approximately three months from the date of the combination with Franklin Global Trust plc on 27 February 2026 to 31 May 2026. The 12-month fee waiver in respect of the asset acquisition arising from the combination is based on the value of the assets acquired from Franklin Global Trust plc.
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.
| 2026 | 2026 | 2026 | 2025 | 2025 | 2025 | |
| Revenue | Capital | Total | Revenue | Capital | Total | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Directors’ remuneration1,2 | 165 | 12 | 177 | 176 | – | 176 |
| Auditor’s fees3: | ||||||
| – for audit of the Company’s | ||||||
| annual Financial Statements | 67 | – | 67 | 67 | – | 67 |
| – non audit fees | – | 35 | 35 | – | – | – |
| Other expenses4 | 451 | 371 | 822 | 320 | (14) | 306 |
| Custodian transaction charges | – | 6 | 6 | – | 8 | 8 |
| 683 | 424 | 1,107 | 563 | (6) | 557 |
1 The Directors’ Remuneration Report provides further information on Directors’ fees. Included within other expenses is £21,000 (2025: £18,000) of employer’s national insurance payable on Directors’ remuneration.
2 As at 31 May 2026, the amounts outstanding on Directors’ fees and employer’s national insurance were £32,000 (2025: £30,000).
3 The Auditor’s fees shown include out of pocket expenses, but exclude VAT, which is included in other expenses. Grant Thornton UK LLP provided non-audit services related to the work on the combination with Franklin Global Trust plc of £35,000.
4 Includes fees for Depositary, broker and Registrar, and also printing, postage and listing costs. Capital costs are expenses related to the combination with Franklin Global Trust plc of £371,000 (2025: 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 £70 million revolving credit facility (see note 12 for further details).
| 2026 | 2026 | 2026 | 2025 | 2025 | 2025 | |
| Revenue | Capital | Total | Revenue | Capital | Total | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Commitment fees due on loan facility | 18 | 42 | 60 | 18 | 41 | 59 |
| Interest payable on borrowings | 53 | 124 | 177 | 32 | 75 | 107 |
| Overdraft interest | 1 | 3 | 4 | – | – | – |
| 72 | 169 | 241 | 50 | 116 | 166 |
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
| 2026 | 2025 | |
| £’000 | £’000 | |
| Overseas taxation | 551 | 431 |
| Corporation tax – prior year adjustment | – | (137) |
| 551 | 294 |
The accounting policy for taxation is disclosed in note 1(g).
(b) Reconciliation of tax charge
| 2026 | 2025 | |
| £’000 | £’000 | |
| Return before taxation | 62,044 | 23,027 |
| Theoretical tax at the current UK corporation tax rate of 25% (2025: 25%) | 15,511 | 5,757 |
| Effect of: | ||
| – Non-taxable UK dividends | (428) | (211) |
| – Foreign tax expensed | (9) | (6) |
| – Non-taxable overseas dividends | (1,120) | (755) |
| – Non-taxable overseas special dividends | – | (70) |
| – Non-taxable gains on investments | (14,603) | (5,121) |
| – Non-taxable losses on foreign exchange | 30 | 1 |
| – Excess of allowable expenses over taxable income | 513 | 407 |
| – Disallowable expenses | 106 | (2) |
| – Overseas taxation | 551 | 431 |
| – Corporation tax – prior year adjustment | – | (137) |
| Tax charge for the year | 551 | 294 |
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 for 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 £23,850,000 (2025: £21,830,000) that are available to offset future taxable revenue.
A deferred tax asset of £5,962,000 (2025: £5,458,000), measured at the standard corporation tax substantively enacted rate of 25% (2025: 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.
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:
| 2026 | 2025 | |
| Average number | Average number | |
| of shares | of shares | |
| Ordinary shares | 84,169,797 | 62,623,090 |
Return per ordinary share is shown in the income statement on page 83.
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, representing distributions for the purpose of section 1159 of the Corporation Tax Act 2010, were as follows:
| 2026 | 2026 | 2025 | 2025 | |
| Dividend rate | Total | Dividend rate | Total | |
| (pence) | £’000 | (pence) | £’000 | |
| Ordinary shares | ||||
| First interim | 3.375 | 2,237 | 3.130 | 1,974 |
| Second interim | 3.375 | 2,399 | 3.130 | 1,970 |
| Third interim | 3.375 | 2,637 | 3.130 | 1,969 |
| Fourth interim | 3.375 | 4,147 | 3.130 | 1,932 |
| 13.500 | 11,420 | 12.520 | 7,845 |
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:
| 2026 | 2025 | |
| £'000 | £'000 | |
| From revenue – current year | 4,825 | 3,140 |
| From revenue – brought forward | – | 102 |
| From revenue – total | 4,825 | 3,242 |
| From capital | 6,595 | 4,603 |
| Dividends in respect of the year | 11,420 | 7,845 |
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 of the investments held at the year end.
(a) Analysis of investments by listing status
| 2026 | 2025 | |
| £’000 | £’000 | |
| UK listed investments | 111,694 | 48,471 |
| Overseas listed investments | 374,839 | 162,973 |
| 486,533 | 211,444 |
(b) Analysis of investment gains
| 2026 | 2025 | |
| £’000 | £’000 | |
| Opening valuation | 211,444 | 195,824 |
| Movements in year: | ||
| – Investments acquired from the combination with Franklin Global Trust plc | 151,944 | – |
| – Purchases at cost | 433,301 | 135,913 |
| – Sales proceeds | (368,569) | (140,775) |
| Gains on investments in the year | 58,413 | 20,482 |
| Closing valuation | 486,533 | 211,444 |
| Closing book cost | 450,566 | 194,110 |
| Closing investment holding gains | 35,967 | 17,334 |
| Closing valuation | 486,533 | 211,444 |
The Company received £368,569,000 (2025: £140,775,000) from investments sold in the year. The book cost of these investments when they were purchased was £328,774,000 (2025: £121,370,000), realising a profit of £39,795,000 (2025: £19,405,000). 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. The higher level of purchases at cost and sales proceeds in the year is partly due to the realisation of investments acquired from the combination with Franklin Global Trust plc and subsequent reinvestment of these proceeds, together with cash received as part of the combination, in accordance with the Company’s investment policy.
(c) Transaction costs
Transaction costs were £658,000 (2025: £95,000) on purchases and £129,000 (2025: £41,000) on sales. The higher level of transaction costs on purchases this year includes costs incurred in connection with the investment of proceeds received from the combination with FRGT detailed in note 1(a)(iv).
10. 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.
| 2026 | 2025 | |
| £’000 | £’000 | |
| Amounts due from brokers | 17,820 | – |
| Share reissues from treasury awaiting settlement | – | 510 |
| Tax recoverable | 346 | 353 |
| Prepayments and accrued income | 1,112 | 451 |
| 19,278 | 1,314 |
11. 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.
| 2026 | 2025 | |
| £’000 | £’000 | |
| Amounts due to brokers | 18,413 | – |
| Accruals | 743 | 443 |
| 19,156 | 443 |
Interest payable on the bank facility is included within the amounts outstanding on the bank facility as shown in the balance sheet.
12. Bank facility and overdraft
At the year end, the Company had a £70 million (2025: £40 million) committed 364 day multicurrency revolving credit facility, which is due for renewal on 21 April 2027 (2025: 22 April 2026). In addition, an overdraft facility for the purpose of short-term settlement is also available; at the year end, £2,000 of this facility was utilised (2025: 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% (2025: 30%) of total assets and the total assets must not be less than £175 million (2025: £100 million). The Company was in compliance with the covenants throughout the year and at the year end (2025: same).
At the year end, the bank facility drawn down was £nil (2025: £2,650,000), and the interest payable on the bank facility was £nil (2025: £nil).
13. Share capital
Share capital represents the total number of shares in issue, including treasury shares.
All shares have a nominal value of 1 pence.
| 2026 | 2026 | 2025 | 2025 | |
| Number | £’000 | Number | £’000 | |
| Allotted, called-up and fully paid: | ||||
| Ordinary shares of 1p each | 126,326,314 | 1,263 | 62,924,182 | 629 |
| Treasury shares of 1p each | – | – | 17,062,404 | 171 |
| 126,326,314 | 1,263 | 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 2025 | 62,924,182 |
| Shares sold from treasury | 17,062,404 |
| New shares issued | 3,915,596 |
| Shares issued as a result of combination with Franklin Global Trust plc | 42,424,132 |
| At 31 May 2026 | 126,326,314 |
| Treasury shares (number) | |
| At 31 May 2025 | 17,062,404 |
| Shares sold from treasury | (17,062,404) |
| At 31 May 2026 | – |
| Ordinary shares of 1 pence each (£’000) | |
| At 31 May 2025 | 629 |
| Shares sold from treasury | 171 |
| New shares issued | 39 |
| Shares issued as a result of combination with Franklin Global Trust plc | 424 |
| At 31 May 2026 | 1,263 |
| Treasury shares of 1 pence each (£’000) | |
| At 31 May 2025 | 171 |
| Shares sold from treasury | (171) |
| At 31 May 2026 | – |
| Total share capital (£’000) | |
| Ordinary share capital | 1,263 |
| At 31 May 2026 | 1,263 |
During the year 42,424,132 ordinary shares were issued at an effective issue price of 381.96p in exchange for £162,043,000 of net assets following on from the combination with Franklin Global Trust plc (see note 22). The total cost of share buy-backs was £nil (2025: £4,270,000 at an average buy-back price of 316.01p). The total proceeds from shares that were sold from treasury and from new issues during the year was £78,200,000 (2025: proceeds from shares sold from treasury £4,110,000) and the average price of such sales and issues was 374.08p (2025: average price of sales 340.70p).
(b) Movements in share capital after the year end
Since the year end, the Company has issued 3,165,000 ordinary shares at an average issue price of 413.29p. As at the date of this Report, the Company has 129,491,314 ordinary shares in issue.
(c) Voting rights
Rights attaching to the shares are described in the Directors’ Report on page 51.
14. 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 any revenue reserves are distributable.
15. 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:
| 2026 | 2026 | 2025 | 2025 | |
| Net asset | Net asset | |||
| value per | Net assets | value per | Net assets | |
| share | attributable | share | attributable | |
| pence | £’000 | pence | £’000 | |
| Ordinary shares | 397.55 | 502,213 | 337.36 | 212,283 |
Net asset value per ordinary share is based on 126,326,314 (2025: 62,924,182) ordinary shares, being the number of ordinary shares in issue (excluding treasury – only relevant to 2025 figures) at the year end.
16. Financial instruments
This note summarises the risks deriving from the financial instruments that comprise the Company’s assets and liabilities.
At 31 May 2026 the Company’s financial instruments comprised the following:
- investments in equities and liquidity funds which are held in accordance with the Company’s investment objective; and
- short-term debtors, creditors and cash arising directly from operations.
The financial instruments held by the Company are shown on pages 26 and 27.
The accounting policies in note 1 include criteria for the recognition and 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 40 to 43. 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 policy, which are set out on page 29. The management process is subject to risk controls, which the Audit Committee reviews on behalf of the Board, as described on page 65.
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 – 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 company, the Company invests in equities and other investments for the long-term in accordance with its investment policy so as to meet its investment objective. In pursuing its objective, 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.
16.1 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 (16.1.1), interest rate risk (16.1.2) and other price risk (16.1.3).
The Company’s Portfolio Managers assess the Company’s exposure when making each investment decision, and monitor the overall level of market risk in 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.
16.1.1 Currency risk
The majority of the Company’s assets, liabilities and income are 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 objective in line with its investment policy. All contracts are limited to currencies and amounts commensurate with the exposure to those currencies. No such contracts were in place at the current year end (2025: none). 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.
| Debtors | Foreign | Investments | |||||
| (due from | currency | at fair value | |||||
| brokers, | Creditors | exposure | through | ||||
| prepayments, | Cash | (due to | on net | profit or | Total net | ||
| accrued income | and cash | Overdrafts | brokers and | monetary | loss that | foreign | |
| and tax) | equivalents | and loans | accruals) | items | are equities | currency | |
| Currency | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| Year ended 31 May 2026 | |||||||
| Australian dollar | – | – | – | – | – | 2,733 | 2,733 |
| Canadian dollar | 1 | – | – | – | 1 | 22,998 | 22,999 |
| Chinese yuan | – | – | – | – | – | 5,704 | 5,704 |
| Danish krone | 55 | – | – | – | 55 | 9,863 | 9,918 |
| Euro | 1,106 | 66 | – | (860) | 312 | 48,611 | 48,923 |
| Hong Kong dollar | 384 | – | – | – | 384 | 21,936 | 22,320 |
| Norwegian krone | 7 | – | – | – | 7 | 10,814 | 10,821 |
| Swiss franc | 1,899 | – | – | (1,762) | 137 | 12,794 | 12,931 |
| Taiwan dollar | 16 | – | – | – | 16 | 12,923 | 12,939 |
| US dollar | 29,681 | – | (2) | (29,352) | 327 | 237,696 | 238,023 |
| 33,149 | 66 | (2) | (31,974) | 1,239 | 386,072 | 387,311 | |
| Debtors | Foreign | Investments | |||||
| (due from | currency | at fair value | |||||
| brokers, | Creditors | exposure | through | ||||
| prepayments, | Cash | (due to | on net | profit or | Total net | ||
| accrued income | and cash | Overdrafts | brokers and | monetary | loss that | foreign | |
| and tax) | equivalents | and loans | accruals) | items | are equities | currency | |
| Currency | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| Year ended 31 May 2025 | |||||||
| 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 |
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:
| 2026 | 2025 | |
| £/Australian dollar | +/–3.7% | n/a |
| £/Canadian dollar | +/–0.7% | +/–2.0% |
| £/Chinese yuan | +/–2.1% | n/a |
| £/Danish krone | +/–0.8% | +/–1.0% |
| £/Euro | +/–0.9% | +/–1.1% |
| £/Hong Kong dollar | +/–1.3% | +/–2.4% |
| £/Japanese yen | n/a | +/–2.5% |
| £/Norwegian krone | +/–3.0% | +/–1.6% |
| £/Swedish krona | +/–1.9% | +/–2.6% |
| £/Swiss franc | +/–1.5% | +/–1.5% |
| £/Taiwan dollar | +/–2.7% | +/–1.9% |
| £/US dollar | +/–1.1% | +/–2.4% |
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:
| 2026 | 2026 | 2026 | 2025 | 2025 | 2025 | |
| Revenue | Capital | Total | Revenue | Capital | Total | |
| return | return | return | return | return | return | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Australian dollar | – | (101) | (101) | – | – | – |
| Canadian dollar | (1) | (161) | (162) | (1) | (230) | (231) |
| Chinese yuan | – | (120) | (120) | – | – | – |
| Danish krone | (1) | (79) | (80) | (2) | (64) | (66) |
| Euro | (17) | (430) | (447) | (8) | (294) | (302) |
| Hong Kong dollar | (6) | (285) | (291) | (5) | (190) | (195) |
| Japanese yen | – | – | – | (1) | (92) | (93) |
| Norwegian krone | – | (324) | (324) | (1) | (80) | (81) |
| Swiss franc | (31) | (165) | (196) | (3) | (53) | (56) |
| Taiwan dollar | (3) | (349) | (352) | (1) | (107) | (108) |
| US dollar | (156) | (2,488) | (2,644) | (45) | (2,431) | (2,476) |
| Total return | (215) | (4,502) | (4,717) | (67) | (3,541) | (3,608) |
| Net assets | (215) | (4,502) | (4,717) | (67) | (3,541) | (3,608) |
If sterling had weakened by the same amounts, the effect would have been the converse.
16.1.2 Interest rate risk
Interest rate movements may affect:
- 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.
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 £70 million (2025: £40 million) committed 364 day multicurrency revolving credit facility which is due for renewal on 21 April 2027. The Company uses the facility when required at levels approved and monitored by the Board.
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:
| 2026 | 2025 | |
| Company total | Company total | |
| £’000 | £’000 | |
| Exposure to floating interest rates: | ||
| Cash and short-term deposits | 15,560 | 2,618 |
| Bank facility | — | (2,650) |
| Overdraft | (2) | – |
| Net exposure to interest rates | 15,558 | (32) |
Interest rate sensitivity
At the maximum possible borrowing level of £70 million (2025: £40 million), the maximum effect over one year of a 3.5% movement in interest rates would be a £2,450,000 (2025: 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 (2025: 3.5% movement: £nil) maximum movement in the Company’s income 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.
16.1.3 Other price risk
Other price risk, 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.
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 Portfolio Managers’ investment processes and the application of the Company’s 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:
| 2026 | 2025 | |
| £’000 | £’000 | |
| Profit after tax increase/decrease due to rise/fall of 10% | 48,653 | 21,144 |
16.2 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:
| 2026 | 2026 | 2025 | 2025 | |
| 3 months | More than | 3 months | More than | |
| or less | 3 months | or less | 3 months | |
| £’000 | £’000 | £’000 | £’000 | |
| Bank facility1 | – | – | 2,650 | – |
| Overdraft | 2 | – | – | – |
| Amount due to brokers | 18,413 | – | – | – |
| Other creditors and accruals | 743 | – | 443 | – |
| 19,158 | – | 3,093 | – |
1 Interest due on the bank facility at the year end was £nil (2025: £nil).
16.3 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 outsourced 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:
| 2026 | 2025 | |
| £’000 | £’000 | |
| Cash and short-term deposits | 15,560 | 2,618 |
| 15,560 | 2,618 |
17. 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, 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 carried in the balance sheet at either their fair value (investments and derivative instruments) or an amount that 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 note 1. All of the Company’s non-zero valued investments are quoted equity investments which are deemed to be Level 1.
| 2026 | 2025 | |
| £’000 | £’000 | |
| Financial assets designated at fair value through profit or loss: | ||
| Level 1 | 486,533 | 211,444 |
| Level 2 | – | – |
| Level 3 | – | – |
| Total for financial assets | 486,533 | 211,444 |
18. 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 2026 was £502,215,000 (2025: £214,933,000) comprising borrowings of £2,000 (2025: £2,650,000) and equity share capital and other reserves of £502,213,000 (2025: £212,283,000).
The Company’s total capital employed is managed to achieve the Company’s investment objective and in accordance with its investment policy as set out on page 29, 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 0.0% (2025: 1.2%). 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 Strategic Report under the ‘Principal Risks and Uncertainties’ section on pages 40 to 43. These also explain that the Company has borrowing facilities which can be used in accordance with the Company’s investment objective and policy 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 2026 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 share price premium/discount management section on page 33 and details of the Company’s dividend policy can be found on page 32.
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 12.
19. 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 (2025: £nil).
20. 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 1 June 2025 | Cash flows | At 31 May 2026 | |
| £’000 | £’000 | £’000 | |
| Cash and cash equivalents | 2,618 | 12,942 | 15,560 |
| Bank facility | (2,650) | 2,650 | – |
| Overdraft | – | (2) | (2) |
| Total | (32) | 15,590 | 15,558 |
21. 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 73 and 74 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 Directors’ Report on pages 49 and 50 and note 3.
22. Combination with Franklin Global Trust plc
On 27 February 2026, the Company announced that it had acquired £162,043,000 of net assets from Franklin Global Trust plc in consideration for the issue of 42,424,132 new ordinary shares based on the respective formula asset values of the two entities on 20 February 2026.
| Net assets acquired | £’000 |
| Investments | 151,944 |
| Cash | 10,099 |
| Net assets | 162,043 |
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 have been no significant events after the end of the reporting period requiring disclosure.
Notice of Annual General Meeting
NOTICE IS GIVEN that the Annual General Meeting (the ‘AGM’ or ‘Meeting’) of Invesco Global Equity Income Trust plc (the ‘Company’) will be held at 3rd Floor, 60 London Wall, London EC2M 5TQ at 2.00 p.m. on Wednesday 21 October 2026 for the following purposes:
Ordinary business of the Company
To consider and, if thought fit, to pass the following resolutions which will be proposed as ordinary resolutions:
1. To receive the Annual Report and audited Financial Statements for the year ended 31 May 2026.
2. To approve the Directors’ remuneration policy.
3. To approve the Annual Statement and Report on Remuneration.
4. To re-elect Sue Inglis as a Director of the Company.
5. To re-elect Tim Woodhead as a Director of the Company.
6. To re-elect Helen Galbraith as a Director of the Company.
7. To elect Christopher Metcalfe as a Director of the Company.
8. To appoint Johnston Carmichael LLP as Auditor to the Company to hold office until the conclusion of the next Annual General Meeting at which accounts are laid before the Company.
9. To authorise the Audit Committee to determine the Auditor’s remuneration.
10. To approve the Company’s dividend policy as set out on page 32 of the 2026 Annual Report.
Special business of the Company
To consider and, if thought fit, to pass the following resolutions which will be proposed as ordinary resolutions:
11. That:
the Company continues as an investment trust until the conclusion of the annual general meeting of the Company to be held in 2031.
12. That:
in substitution for all existing powers, the Directors be and are hereby generally and unconditionally authorised, for the purpose of section 551 of the Companies Act 2006 (the ‘Act’) to exercise all the powers of the Company to allot relevant securities (as defined in sections 551(3) and (6) of the Act) up to an aggregate nominal amount of £863,275 (being 86,327,500 ordinary shares of 1 pence each) which equates to approximately two-thirds of the total ordinary share capital in issue (excluding any treasury shares) as at 22 September 2026 (the latest practicable date prior to the date of the notice convening the meeting at which this resolution is proposed), provided that this authority shall expire at the conclusion of the next AGM of the Company or the date falling 15 months after the passing of this resolution, whichever is the earlier, save that this authority shall allow the Company to make offers or agreements before the expiry of this authority which would or might require relevant securities to be allotted after such expiry and the Directors may allot relevant securities in pursuance of such offers or agreements as if the power conferred hereby had not expired.
To consider and, if thought fit, to pass the following resolutions which will be proposed as special resolutions:
13. That:
in substitution for all existing powers, the Directors be and are hereby generally empowered, pursuant to sections 570 and 573 of the Companies Act 2006 (the ‘Act’) to allot equity securities (within the meaning of section 560 of the Act) pursuant to any authority for the time being in force under section 551 of the Act and to sell shares held by the Company in treasury, wholly for cash, as if section 561(1) of the Act did not apply to any such allotment or sale, provided that this power:
(i) shall be limited to the allotment of equity securities and the sale of treasury shares for cash up to an aggregate nominal amount of £129,491 (being 12,941,100 ordinary shares of 1 pence each which equates to approximately 10% of the total ordinary share capital of the Company in issue (excluding treasury shares) as at 22 September 2026 (the latest practicable date prior to the date of the notice convening the meeting at which this resolution is proposed)); and
(ii) expires on the conclusion of the next AGM of the Company to be held after the passing of this resolution or the date falling 15 months after the passing of this resolution, whichever is the earlier, save that the Company may before such expiry make an offer or agreement which would or might require equity securities to be allotted or sold from treasury after such expiry and the Directors may allot or sell from treasury equity securities in pursuance of such an offer or agreement as if the power conferred hereby had not expired.
14. That:
conditional on the passing of Resolution 13, and only once the authority granted in Resolution 13 has been exhausted, the Directors be and are hereby generally empowered, pursuant to sections 570 and 573 of the Companies Act 2006 (the ‘Act’) to allot equity securities (within the meaning of section 560 of the Act) pursuant to any authority for the time being in force under section 551 of the Act and to sell shares held by the Company in treasury, wholly for cash, as if section 561(1) of the Act did not apply to any such allotment or sale, provided that this power:
(i) shall be limited to the allotment of equity securities and the sale of treasury shares for cash up to an aggregate nominal amount of £129,491 (being 12,949,100 ordinary shares of 1 pence each which equates to approximately 10% of the total ordinary share capital of the Company in issue (excluding treasury shares) as at 22 September 2026 (the latest practicable date prior to the date of the notice convening the meeting at which this resolution is proposed)); and
(ii) expires on the conclusion of the next AGM of the Company to be held after the passing of this resolution or the date falling 15 months after the passing of this resolution, whichever is the earlier, save that the Company may before such expiry make an offer or agreement which would or might require equity securities to be allotted or sold from treasury after such expiry and the Directors may allot or sell from treasury equity securities in pursuance of such an offer or agreement as if the power conferred hereby had not expired.
15. That:
the Company be and is hereby generally and unconditionally authorised in accordance with section 701 of the Companies Act 2006 (the ‘Act’) to make market purchases (within the meaning of section 693(4) of the Act) of its issued ordinary shares of 1 pence each, provided that:
(i) the maximum number of shares hereby authorised to be purchased shall be 14.99% of the total ordinary share capital of the Company in issue (excluding treasury shares) as at the date of the AGM;
(ii) the minimum price which may be paid for a share shall be 1 pence;
(iii) the maximum price which may be paid for a share must not be more than the higher of: (a) 5% above the average of the mid-market values of the shares for the five business days before the purchase is made; and (b) the higher of the price of the last independent trade in the shares and the highest then current independent bid for the shares on the London Stock Exchange;
(iv) any purchase of shares will be made in the market for cash at prices below the prevailing net asset value per share (as determined by the Directors);
(v) the authority hereby conferred shall expire at the conclusion of the next AGM of the Company or, if earlier, on the expiry of 15 months from the passing of this resolution unless the authority is renewed at any other general meeting prior to such time; and
(vi) the Company may make a contract to purchase shares under the authority hereby conferred prior to the expiry of such authority which will be executed wholly or partly after the expiration of such authority and may make a purchase of shares pursuant to any such contract.
16. That:
the period of notice required for general meetings of the Company (other than Annual General Meetings) shall be not less than 14 clear days.
17. That:
(i) subject to the sanction of the High Court of Justice in England and Wales (the ‘Court’), the entire amount standing to credit of the share premium account of the Company, at the date an order is made confirming such cancellation by the Court, be cancelled; and
(ii) the amount of the share premium account so cancelled be credited to a reserve of the Company.
Dated 22 September 2026
By order of the Board
James Poole
Senior Company Secretary
Invesco Asset Management Limited
Corporate Company Secretary
The figures and financial information for the year ended 31 May 2026 are extracted from the Company's annual financial statements for that year and do not constitute statutory accounts. The Company's annual financial statements for the year to 31 May 2026 have been audited but have not yet been delivered to the Registrar of Companies. The Auditor's report on the 2026 annual financial statements was (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
The figures and financial information for the year ended 31 May 2025 are compiled from an extract of the published accounts for that year and do not constitute statutory accounts. Those accounts have been delivered to the Registrar of Companies. The Auditor's report on the 2025 annual financial statements was (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
The audited annual financial report will be posted to shareholders shortly and will be delivered to the Registrar of Companies in due course. Copies may be obtained during normal business hours from the Company’s Registered Office, from its correspondence address, 60 London Wall, London EC2M 5TQ, and via the Manager’s website at https://www.invesco.com/uk/en/investment-trusts/invesco-global-equity-income-trust.html.
A copy of the annual financial report will be submitted shortly to the National Storage Mechanism ("NSM") and will be available for inspection at the NSM, which is situated at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
James Poole
For and on behalf of Invesco Asset Management Limited
Corporate Secretary to the Company
Telephone: 020 7543 3559
Will Ellis
Head of Specialist Funds - Invesco
Telephone: 020 3753 1000
22 September 2026
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