Invesco Income Growth (IVI) aims to generate quarterly income, and capital growth, superior to the wider UK stock market. Managed by Ciaran Mallon, IVI also targets growing capital and dividends in real (i.e. inflation-adjusted) terms, and is viewed by the manager as very much a ‘core’ UK equity income product; as such, he seeks to avoid significant stylistic or macroeconomic tilts within the portfolio. IVI presently yields c. 4.3% (as of 28/02/2020) and has increased its dividend every year for 22 years. The trust’s focus is on disciplined bottom-up stock research, identifying companies with a strong track record of capital allocation. As we discuss in the Portfolio section, the trust has a bias to high-quality businesses with strong balance sheets and good management, operating in industries with high barriers to entry and generating sustainable profit margins. It is a concentrated portfolio across circa 40-50 holdings, with very low turnover. Compared to its Invesco UK Equity peers, IVI tends to have greater exposure to large-cap equities and sectors, such as utilities, which generate reliable dividend streams. Gearing is another differentiator, the level of which is primarily driven by stock-specific considerations, though wider market momentum is also considered. IVI’s discount has narrowed significantly in recent months following improved NAV returns, but at c. 9.7% (as of 28/02/2020) is still wider than the weighted peer group average. In recognition of this, the board has announced that a continuation vote will be held in 2020. The narrowing of the discount has helped to generate notable share price outperformance over the past 12-months. Historically, as we detail in the Performance section, IVI has been successful in mitigating market downside during corrections.