Article

Strategy – Thematic Approach

Lyndon Man
Lyndon Man
Fund Manager
Invesco Global Investment Grade Corporate Bond Strategy
Invesco Global Investment Grade Corporate Bond Strategy

The strategy is actively managed and focuses on delivering attractive risk-adjusted returns through the implementation of strategic investment themes. Portfolio managers have the output of the IFI platform at their disposal in order to help them identify the most appropriate investment themes. These themes are designed to isolate relative value opportunities within corporate bond markets globally through recognising what are believed to be the key drivers of credit markets going forward. Themes are populated using security selection in order to best represent the view and capture the highest risk-adjusted returns within the guidelines of the Strategy.

Predominantly the investment themes drive positioning across the following thematic risk factors versus the benchmark:

  • Regions
  • Sectors
  • Currency of the bonds
  • Credit Curve Term Structure
  • Capital structure

 

The themes are long term in nature, and whilst herding behavior in markets can result in bouts of volatility during periods of uncertainty, often these have little to no influence on our long-term views. The team state they must not allow short-term uncertainty to cloud their long-term judgement unless there is a fundamental change to their view. 

Related insights

Investment risks

  • 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 strategy.
    The strategy uses derivatives (complex instruments) for investment purposes, which may result in the strategy being significantly leveraged and may result in large fluctuations in the value of the strategy.
    The strategy 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 strategy.
    As this strategy is invested in a particular sector, you should be prepared to accept greater fluctuations in the value of the strategy than for a strategy with a broader investment mandate.
    The strategy may invest in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events. 

Important information

  • This is marketing material and 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.
    Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.
    Further information on our products is available using the contact details shown.