- Of the 109 Invesco funds analysed, only 36 consistently outperformed their sector peers, earning a top 4 or 5-star rating.
- 47.8% of Invesco’s funds have a history of underperformance, with 52 receiving a low 1 or 2-star rating.
- The Invesco European Smaller Companies (UK) Z Acc fund has ranked among the top performers in the IA European Smaller Companies sector over the past 1, 3, and 5 years.
Founded in 1978, Invesco has grown into one of the world’s leading independent investment managers. Headquartered in Atlanta, it operates in more than 20 countries and employs over 800 investment professionals. As of July 2025, the firm holds nearly US $2 trillion in assets under management (AUM).
Since retiring its UK “Invesco Perpetual” name in 2018, the firm has brought all operations under the unified Invesco brand. Its product range spans equities, fixed income, multi-asset, alternatives, and exchange-traded products. This scale and breadth have made it a major provider for both retail and institutional investors.
In the UK, Invesco is among the most recognised fund managers, with many investors holding Invesco branded funds in their investment portfolios.
In this 2025 review, we analyse the top 10 performing Invesco funds. We assess their performance over 1, 3, and 5 years relative to sector averages, and evaluate how consistently they have delivered for investors, highlighting their strengths and limitations.
We also examine the full range of 109 Invesco funds, ranking each against peers within their respective Investment Association sectors.
Invesco Fund Performance Review
We carried out a detailed review of 109 Invesco funds, examining their performance and sector rankings over 1, 3, and 5 years. Each fund was evaluated and given an overall Yodelar rating based on its returns compared to sector peers.
Our findings show that only 36 Invesco funds earned a 4 or 5-star rating, reflecting a strong and consistent ability to outperform their peers across all timeframes.
At the other end of the spectrum, 52 funds - more than 47% of those analysed - received a low 1 or 2-star rating due to persistently below-average returns.
10 Top Performing Invesco Funds
The table below highlights the 10 best-performing Invesco funds, with a detailed overview of their returns over the most recent 1, 3, and 5-year periods.
All of these funds have delivered consistently competitive results across varying market conditions and are recognised as top performers within their sectors.
Each of these funds has been awarded a top 4 or 5-star rating based on its performance relative to sector peers.
1. Invesco Asian (UK) Z Acc
The Invesco Asian (UK) Z Acc fund targets long-term growth over five years or more. It invests mainly in companies across Asia and Australasia, excluding Japan, with at least 80% of its assets in the region. The managers focus on companies they consider undervalued but with strong growth potential.
The fund manages around £2.71 billion and has consistently outperformed its sector peers. Over the past year, it returned 20.82%, compared with 14.41% for the sector average. Its three-year return is 28.64% and its five-year return 59.75%, both above the sector averages of 16.45% and 29.24%.
Recent performance has been supported by holdings in technology and industrial companies in China and Taiwan, as well as positions in communication and selected cyclical sectors. Top holdings such as Taiwan Semiconductor, Tencent, and HDFC Bank have contributed to returns, alongside favourable currency movements and increased foreign investment in markets including India and South Korea.
The fund is not tied to a benchmark, allowing the managers flexibility to adjust holdings according to market conditions. This means performance can differ from the wider market depending on the focus on particular stocks and sectors.
2. Invesco Distribution (UK) Z Acc
The Invesco Distribution (UK) Z Acc fund is designed to deliver income and capital growth over the medium to long term (3 to 5 years or more). It allocates up to 80% of its assets across global corporate and government bonds - including investment grade, high yield, and unrated - and up to 40% in equities and equity-related securities worldwide.
Managing £1.67 billion in assets, the fund has established itself among the top performers within the IA Mixed Investment 20–60% Shares sector. Its 9.92% return over the past year outperforms the sector average of 7.72%. Over three years, it has grown by 26.77%, ranking 5th among 173 peers and surpassing the sector’s 16.78%. Over five years, it achieved a notable 38.82% return, well ahead of the 24.14% sector average.
Recent outperformance has been underpinned by a balanced mix of bonds and shares, selective credit holdings chosen for quality and yield, and a focus on income-generating assets. Active allocation decisions, timely equity investments in resilient sectors, and the boost from higher bond yields in the current interest rate environment have all strengthened returns. Skilled management and favourable global market conditions have further reinforced performance.
3. Invesco European Smaller Companies (UK) Z Acc
The Invesco European Smaller Companies (UK) Z Acc fund aims for long-term growth over five years or more. At least 80% of its assets are invested in smaller companies across continental Europe, excluding the UK. The fund can also hold other equities, collective funds, money market instruments, deposits, and cash as opportunities arise.
The fund is actively managed with a focus on identifying companies that appear undervalued but have strong growth potential. It is not tied to a benchmark, giving managers flexibility to invest across sectors and market capitalisations.
Over the past year, the fund returned 24.54%, compared with a sector average of 16.95%, ranking 4th out of 25 funds. Its three-year return is 59.80%, ahead of the sector average of 30.64% and ranking 1st in its peer group. Over five years, it returned 102.76%, more than double the sector average of 46.94%, again ranking top among its peers.
4. Invesco Global Balanced Index (UK) No Trail Acc
This fund seeks to deliver both long-term capital growth and income over five years or more. At least 80% of its assets are invested in a diversified mix of global equities and debt securities, with the flexibility to hold cash or other instruments when market conditions warrant.
The investment process is systematic and multi-factor, focusing on Quality, Value, and Momentum when selecting equities. A tactical asset allocation overlay enables managers to adjust exposure between asset classes while keeping tracking error modest relative to the benchmark to manage risk effectively.
Its disciplined strategy has enjoyed consistent success. Over the past year, the fund returned 14.83%, ranking 6th out of 233 peers and well ahead of the sector average of 9.18%. Over three years, it achieved 37.29%, ranking 4th out of 209 funds versus the sector’s 22.86%. Its five-year return stands at 68.62%, outperforming the sector average of 36.81% and again ranking it 4th out of 187 funds.
The portfolio is heavily weighted towards developed markets, with UK equities accounting for approximately 50% of assets, US equities a further 22%, and selective exposure to the Eurozone. Sector allocations favour financials, industrials, consumer defensive, and healthcare—sectors that have contributed to recent gains.
5. Invesco Global Emerging Markets (UK) Z Acc
The Invesco Global Emerging Markets (UK) Z Acc fund aims to grow investors’ money over the long term by investing primarily in companies based in, or closely linked to, emerging markets worldwide. It targets businesses with strong cash flows, robust balance sheets, and attractive valuations, often overlooked by mainstream investors.
Rather than tracking a market index, the managers adopt a contrarian, valuation-driven investment approach. They conduct detailed research to identify companies they believe offer good value and possess the potential for steady growth over time.
This disciplined approach has generated notable outcomes within the IA Global Emerging Markets sector in recent years. Over the past year, the fund returned 21.61%, ranking 7th of 167 and ahead of the sector average of 13.28%. Over three years, it achieved 40.39% versus 22.37% for the sector, and over five years it returned 68.82%, more than twice the sector average of 29.18%, ranking 6th of 139 funds.
Much of this success comes from investments in leading Asian companies across technology, banking, and consumer goods, particularly in Taiwan, South Korea, and China. Prominent holdings such as Taiwan Semiconductor, Samsung Electronics, and HDFC Bank have made a significant contribution to returns.
6. Invesco Global Equity Income (UK) Z Acc
The Invesco Global Equity Income (UK) Z Acc fund is part of the IA Global Equity Income sector and invests in companies worldwide that pay dividends. At least 80% of its assets are held in global equities, with the goal of generating both income and long-term growth.
The fund manages around £937 million. Over the past year, it returned 20.88%, ranking 2nd out of 56 funds in its sector and well above the sector average of 11.95%. Over three years, it achieved 61.46%, again the 2nd highest in its category, and over five years it returned 113.52%, ahead of the sector’s 67.42%, maintaining a 2nd place ranking among 49 peers.
Performance reflects a consistent global income approach, with a focus on companies that have durable business models, strong market positions, and lower levels of financial leverage. This approach seeks to balance risk across different economic conditions while concentrating on the resilience of individual holdings.
Key holdings include Rolls-Royce, 3i Group, Microsoft, and Coca-Cola Europacific Partners. These companies have contributed to returns through their established market positions, financial strength, and operational stability.
7. Invesco Global Ex UK Core Equity Index (UK)
The main objective of the Invesco Global ex UK Core Equity Index (UK) fund is to grow capital over five years or more by investing at least 80% in shares of companies worldwide, excluding the UK.
Instead of traditional stock-picking, it follows a systematic, factor-based strategy built around Quality, Value, and Momentum to capture growth opportunities while managing risk.
Managing £64 million in assets, the fund has consistently outperformed peers in the IA Global sector. Over the past year, the fund posted a robust return of 18.43%, markedly exceeding the sector average of 10.73%. Over three years, it delivered an outstanding 65.50%, more than doubling the sector benchmark of 32.32%. Over five years, it achieved a remarkable total return of 121.52%, once again surpassing the sector average of 59.07%.
Its portfolio spans multiple regions and sectors, with technology, finance, and industrials forming the core allocations. Major holdings include NVIDIA, Microsoft, Apple, Amazon, Alphabet, RTX Corporation, and Bank of New York Mellon - all of which have played a notable role in delivering steady long-term results.
8. Invesco Global Income (UK) Z Acc
The Invesco Global Income (UK) Z Acc fund aims to generate both income and capital growth, typically over three to five years or longer. It invests across global bonds—up to 80% of its assets—and equities—up to 60%—with the flexibility to hold other securities, collective funds, and cash when appropriate.
Bond holdings include both investment-grade and high-yield issues, while the equity allocation focuses on companies with strong business models, low leverage, and sustainable dividends.
Performance has been strong relative to its peers. Over the past year, the fund returned 11.83%, above the sector average of 7.42%. Across three years, it achieved 34.94%, ranking 2nd out of 173 funds, and over five years it returned 47.79%, placing 3rd among 157 peers—almost double the sector average of 24.14%.
Results reflect the fund’s disciplined approach to combining income-generating assets with selective equity exposure, supported by an experienced management team.
9. Invesco UK Enhanced Index (UK) Z Acc
The Invesco UK Enhanced Index (UK) Z Acc fund aims to outperform the FTSE All-Share Index through a rules-based, enhanced index strategy. At least 80% of its assets are invested in UK companies, including shares and equity-related securities.
Rather than simply tracking the index, the fund adjusts portfolio weightings using a systematic approach based on fundamental and technical factors. This creates a low-cost portfolio designed to deliver incremental outperformance with lower volatility than typical actively managed funds.
Performance has been consistent across different market conditions. Over the past year, the fund returned 17.18%, ranking 23rd out of 209 in the IA UK All Companies sector. Its three-year return of 44.09% exceeded the sector average of 27.61%, while the five-year gain of 86.14% comfortably outpaced the sector’s 57.23%, placing it in the top quartile.
10. Invesco FTSE RAFI UK 100 UCITS ETF (GBP)
The Invesco FTSE RAFI UK 100 UCITS ETF is a passively managed exchange-traded fund designed to replicate the FTSE RAFI UK 100 Index.
Rather than using traditional market capitalisation weightings, it applies a fundamental methodology that selects and weights the 100 largest UK-listed companies according to four measures: book value, cash flow, sales, and dividends. This approach is intended to limit exposure to overvalued stocks and increase holdings in financially resilient businesses with notable value characteristics. The portfolio is rebalanced annually, often resulting in sector allocations that differ markedly from conventional UK equity indices.
The fund has delivered consistently impressive results, ranking among the best-performing Invesco offerings. Over the past year, it returned 16.98%, outperforming the IA UK All Companies sector average of 10.67%. Over three years, it gained 44.83% compared with 27.61% for the sector, and over five years it achieved 106.59% versus 57.23%, placing ninth out of 198 peers.
By concentrating on fundamentally robust UK large-cap equities, the ETF offers an affordable way to gain exposure to a differentiated UK equity portfolio with a distinctive risk–return profile. Its consistent outperformance of sector averages underlines the potential benefits of its fundamental weighting strategy, which has proved effective across multiple market environments.
Summary
Invesco is one of the UK’s most recognised fund managers, with a strong global presence. Of the 109 funds analysed, 36 achieved 4 or 5-star ratings, showing that parts of its portfolio have delivered strong returns. The 10 top-performing funds in this review illustrate how disciplined strategies can generate consistent outperformance across different sectors.
At the same time, 47% of funds received 1 or 2-star ratings, highlighting that a substantial proportion have struggled to keep pace with sector averages. This variability underlines that size and brand recognition alone do not guarantee results, and careful selection remains essential when assessing individual funds.
Fund performance can be unpredictable. Some funds with strong past results continue to perform well, while others fail to maintain momentum, and those that underperform often remain laggards. Chasing performance alone is not a substitute for a structured, long-term investment process. Without access to the right data and oversight, investors risk being exposed to underperforming funds at exactly the wrong time.
Why Portfolio Management Matters More Than Ever for Future Growth
The variability in Invesco’s fund performance reinforces the importance of assessing each holding within the context of a broader portfolio strategy. Not all funds perform consistently across market cycles, and performance can shift as conditions change. A resilient portfolio relies on careful diversification, alignment with long-term objectives, and understanding how individual investments contribute to overall outcomes.
Integrating performance insights into a forward-looking management process is critical. Professional oversight, such as the discretionary investment management offered by MKC Invest within MKC Wealth, allows timely adjustments without client delays, helping portfolios stay aligned with market conditions and investor goals.
Ultimately, achieving sustainable results requires more than selecting top-performing funds. Structured, ongoing management ensures that investments continue to work effectively over the long term, helping to navigate volatility and maximise potential outcomes.
