This flexible bond fund invests without sector, regional or asset class constraints, adapting its asset allocation to reflect changing market conditions.
Following some of the largest ever adjustments in yields, fixed income markets are once again offering attractive return potential.
Bond market volatility has also risen, potentially creating more opportunities for active fund managers with flexible bond products.
Flexible bond funds typically have more flexibility to change asset allocation than traditional fixed income funds.
We align risk and reward through our adaptable and opportunistic bond market allocations. This fund’s broad remit gives us the flexibility to take advantage of opportunities on both a short-term tactical and long-term strategic basis.
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. 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 extensively in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events. The Fund may invest in a dynamic way across assets/asset classes, which may result in periodic changes in the risk profile, underperformance and/or higher transaction costs.
The strategy’s investment objective is to maximise total return, primarily through investment in a flexible allocation of debt securities and cash.
We are free from benchmark constraints, and can actively allocate to corporate bonds, government debt, high yield bonds and cash across fixed income markets globally.
The flexible strategy is characteristic of our philosophy as an investment team: we only invest when we believe the return potential is sufficient to compensate for the risk. We look to deliver strong performance across a range of market environments.
By taking a flexible approach to duration, we believe we can reduce the impact of rate hikes on portfolio performance and volatility.
Meanwhile, when we think rates look attractive, we aim to take advantage of the returns on offer.
We are free to hold up to 100% in cash and near-cash instruments, where appropriate.
Our time-tested approach is based on fundamental analysis, with a strong emphasis on valuation.
Our 40+ team members have extensive industry experience and have been successfully managing bond funds for 25+ years.
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Julien Eberhardt and Asad Bhatti are responsible for managing the strategy, supported by the rest of Invesco’s Fixed Income Team. Together, Julien and Asad have a combined 40+ years of industry experience.
Julien Ebernhardt
Asad Bhatti
This strategy was launched in 2010 and is invested across a broad range of fixed income securities in both developed and developing markets. The managers can reduce duration risk by allocating up to 100% to cash and near cash. They can also have up to 20% exposure to foreign currency risk.
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Data as at 31.12.2023, 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.
EMEA3310549/2024
