The Invesco Income Fund has always been the flagship Income Fund in the UK. Mark Barnett took over the management in 2014. Since taking on the management of the fund, Mark has managed to slightly outperform the benchmark.
Mark explained that the UK is clouded by the political uncertainty and this impacts everything. The main impact is sterling which moves up or down depending on market sentiment. The drop in sterling has helped exporters but left domestic stocks at a 25% discount. This level of discount would suggest a recession, but Mark feels this is overdone. Investors are turning their back on domestic stocks and this is where Mark sees opportunities.
The fund is split into four major themes – UK Domestic Value (32%), International Growth Opportunities (24%), Tobacco (6%) and Non-Correlated Financials (26%). Mark has been reducing overseas exposure and investing in domestic stocks…read more