Fund Manager Edward Craven
MPhys, FCA
SUSTAINABLE INVESTING
Introducing the Invesco Sustainable Global Income Fund
Embark on the journey to a low carbon world with this mixed asset strategy, combining fixed income and global equities.
At a glance
This fund aims to support the transition to a low carbon economy over the medium to long term, while providing income and growth.
It invests in corporate bonds, government bonds and global equities, focusing on investments with stronger climate characteristics than their peers. It is classified as Article 9 under the Sustainable Finance Disclosure Regulation.
Why consider this fund?
As we move towards a net-zero world, winners and losers will emerge as some businesses flourish and others fail to adapt. Companies that are ill prepared or incompatible with the new economy could suffer defaults, losses and impairments. We actively select companies with strong climate characteristics that are well positioned for the future. We believe this will help to reduce investment risk over the long-term.
Not all sustainable companies issue green bonds. That’s why we don’t restrict ourselves to green bonds only. Instead, we form our own judgement on a company’s financial and green credentials. For example, if a company we like issues green and non-green bonds, we can choose which is the best value.
Furthermore, we can finance companies in carbon intensive sectors, if they are going a step further than their peers in their efforts to reduce emissions. Good examples of this include companies in the power and automotive sectors. We believe that this is the best way to encourage real world change.
As well as delivering on our climate objective, we aim to provide income and growth by taking advantage of a diverse and flexible opportunity set. We can allocate between 35% and 65% to debt securities from across the credit spectrum, with the balance in global equities. One of the benefits of the equity allocation is that it has the potential to deliver shareholder value and can be adjusted depending on market conditions.
Access the Invesco Sustainable Global Income Fund product page to view KIIDs/KIDs and factsheets.
The investment concerns the acquisition of units in an actively managed fund and not in a given underlying asset. Any investment decision should take into account all the characteristics of the fund as described in the legal documents. For sustainability related aspects, please refer to www.invescomanagementcompany.lu.
Investment risks
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For complete information on risks, 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 certain securities listed in China which can involve significant regulatory constraints that may affect the liquidity and/or the investment performance of the fund. Investments in debt instruments which are of lower credit quality 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. The lack of common standards may result in different approaches to setting and achieving ESG objectives. In addition, the respect of the ESG criteria may cause the Fund to forego certain investment opportunities.
The fund management team
Portfolio managers Edward Craven, Alexandra Ivanova, Stephen Anness and Andrew Hall bring a combined 80+ years of industry experience. They are members of the Henley-based investment teams and have worked together for several years. They draw on the support of their colleagues in the fixed interest and global equities teams. Invesco’s global ESG team is also available to provide support and analysis.
Alexandra Ivanova, Fund ManagerThis fund takes a very active approach to stock picking and security selection. We are seeking to finance companies that can make a difference.
Fund facts
The team has more than 25 years of experience managing mixed asset funds. The sustainable global income strategy launched in December 2022 and is invested across a 35-65% global equity/debt allocation.
Align your portfolio with your values
Diversification benefits
Large opportunity set
Frequently asked questions
To fulfil the goals of the Paris Agreement, countries, corporates and consumers will have to take steps to reduce their carbon footprints. The switch from a carbon-intensive economy will require huge public and private sector investment in innovative technology and green infrastructure. Meanwhile, any delay in the transition to net zero could exacerbate the climate crisis and pose risks to portfolios and assets. Investment portfolios and asset allocation will increasingly reflect the realities of the transition to net zero.
Green bonds are debt securities designed to finance climate and environmental projects. For example, they may support energy efficiency, sustainable agriculture, clean transportation, sustainable water management, and so on.
Green bonds can be good at promoting ESG outcomes, however it is also important to remember that some companies which are sustainable don’t issue green bonds. That’s why we don’t restrict ourselves to green bonds only in our management of the fund. Instead, we form our own judgement on a company’s financial and green credentials. For example, if a company we like issues green and non-green bonds, we can choose which is the best value.
One benefit of the bond portion of a mixed asset portfolio is that it has the potential to deliver a steady income stream while offsetting stock market volatility. Meanwhile, a benefit of the equity component is that it has the potential to deliver shareholder value.
SFDR stands for Sustainable Finance Disclosure Regulation. This is a European regulation that came into effect in 2021. Its aim is to increase transparency around sustainable investment products and to reduce the risk of greenwashing. Funds are classified as Article 6, Article 8 or Article 9 depending on their ESG approach.
Article 9 is deemed the ‘greenest’ categorisation. To be categorised as Article 9, a fund must have sustainable investing or carbon reduction as part of its investment objective.
How can we help?
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Important information
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Data as at 31.10.2023, 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.
EMEA3222982/2023
