At Invesco Fixed Income we recognise the importance of applying ESG principles in everything we do. This is because we believe ESG investing is key to the sustainable future of our planet and our clients’ investments.
With over USD$386 billion assets under management and 174 investment professionals, who have an average of 19 years’ industry experience1, IFI is an important voice supporting the engagement efforts of Invesco and helping to promote ESG integration across the industry.
Our expertise in a wide spectrum of fixed income assets ranging from cash investments to corporate bonds, developed to emerging markets, and government debt to securities backed by mortgages or other assets, means we are well positioned to implement ESG considerations across the fixed income universe.
We recognise that every asset class in which we invest has its own set of unique features and, whilst looking for commonalities, it is important to actively consider relevant risk factors on merit.
Tony Wong, Head of Fixed Income InvestmentsOur approach to ESG integration is shaped by the characteristics of the asset class but the same unifying elements will be present. We ensure that our portfolio managers are ESG aware with the ability to optimise as necessary.
IFI teams first identify what ESG factors are most important (materiality) and investigate where the most or least progress is being made (momentum). Together, these elements can lead IFI portfolio managers to identify more sustainable investments for our clients’ portfolios and better control risk in the process.
Fixed income has a pivotal role to play in building a better world as the maturing nature of bonds means that issuers must return to the market for financing. Investors now expect ESG to be at the heart of fixed income investing and bonds also provide a means for them to access specific environmental or socially beneficial projects.
Explore our insights below to discover how we think about ESG across our capabilities, with the aim of promoting the transition to a more sustainable planet and achieving the best outcomes for clients.
Yields remain attractive and may maintain positive relative value
Significant focus on the uncertainty of the US macroeconomic backdrop and its potential implications on the market remain top of mind for investment opportunities. Against this cautious outlook, we asked the experts from Invesco’s bank loan, direct lending and distressed credit teams to share their views as the third quarter of 2024 wraps up.
Monthly fixed income update
Fixed income markets in July saw yields rally in response to weaker economic data which brought forward expectations of rate cuts. 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.
Global Fixed Income Strategy Monthly Report
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.
Impact investing: climate adaptation and transition in a changing world
If we are to live more sustainably by 2030, the Climate Policy Initiative estimates that US $4.3 trillion will be needed annually. Climate adaptation and transition projects are helping, but more finance is needed. Find out more.
The case for municipal bonds
US municipal bonds are worth considering for European investors portfolios as they may provide a source of diversification and for their relative value compared to Euro corporate bonds.
1 Invesco, as of 30 June 2021.
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.
All data is as at 30 September 2021 unless otherwise stated.
This document is marketing material and is not intended as a recommendation to invest in 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. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.
Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals, they are subject to change without notice and are not to be construed as investment advice.
