We invest in a diversified portfolio of primarily investment grade bonds, denominated in Euros. Without benchmark or duration constraints, we’re free to adapt to changing market conditions.
Bonds are now offering income opportunities not seen since the global financial crisis. And investors aren’t having to take on too much credit risk to gain exposure to these, with companies having entered this period with reasonable balance sheet strength.
Against this backdrop, the asset class looks particularly attractive.
This is an investment grade credit portfolio, but we have the flexibility to allocate up to 30% to high yield securities and government bonds. This allows us to take on more risk when the opportunities look attractive, or reduce risk in periods where we don’t feel it is justified.
We also have no duration restrictions, which means we can mitigate risk or take advantage of opportunities, depending on the prevailing interest rate environment.
The investment concerns the acquisition of units in an actively managed fund and not in a given underlying asset.
We carry out thorough credit analysis, combining internal and external research, to find good quality companies with attractively valued bonds. The aim is to maximise returns through acceptable and well-understood credit risk exposure.
We consider the risk/return profile of any bond relative to cash, core government bonds and the rest of the fixed income universe. We only take risks that we feel will be adequately rewarded. ESG risks are also considered and actively managed, and the fund is classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).
Our approach is flexible, pragmatic and market driven. We focus on absolute risk and return and are not constrained by an index.
Our time-tested approach is based on fundamental analysis, with a strong emphasis on valuation. Our fund managers are supported by a well-resourced team of analysts.
For complete information on risks, please refer to the legal documents. The value of investments and any income will fluctuate (this may partly be the result of exchange-rate fluctuations) and investors may not get back the full amount invested. Debt instruments are exposed to credit risk which is the ability of the borrower to repay the interest and capital on the redemption date. Changes in interest rates will result in fluctuations in the value of the fund. The fund uses derivatives (complex instruments) for investment purposes, which may result in the fund being significantly leveraged and may result in large fluctuations in the value of the fund. The fund may invest in distressed securities which carry a significant risk of capital loss. The fund may invest in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events.
November was a broadly positive month for bond markets as yields rallied into month end. Read our latest thoughts on how fixed income markets performed during the month and what we think you should be looking out for in the near term.
We believe the case for investing in bonds is the strongest it has been since the GFC. Invesco’s experts from across Fixed Income teams and asset classes share their views on the outlook and opportunities.
In our regularly updated macroeconomic analysis we offer an outlook for interest rates and currencies – and look at which fixed income assets are favoured across a range of market environments.
Julien Eberhardt and Tom Hemmant are responsible for managing the fund, supported by the rest of Invesco‘s Fixed Income Team. Together, the two fund managers have a combined 38 years of industry experience.
Julien Eberhardt, Co-Fund Manager, Invesco Euro Corporate Bond FundBecause of the flexibility we have in our mandate and the credit research resources in the team, we believe the fund can deliver attractive risk-adjusted returns from this vital income asset class.
This fund was launched in 2006. Today its assets under management total > EUR 2 billion, invested primarily in investment grade debt securities.
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Data as at 30.11.2023, unless otherwise stated. This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. Views and opinions are based on current market conditions and are subject to change. For information on our funds and the relevant risks, refer to the Key Information Documents/Key Investor Information Documents (local languages) and Prospectus (English, French, German, Spanish, Italian), and the financial reports, available from www.invesco.eu. A summary of investor rights is available in English from www.invescomanagementcompany.lu. The management company may terminate marketing arrangements. Not all share classes of this fund may be available for public sale in all jurisdictions and not all share classes are the same nor do they necessarily suit every investor.
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