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Invest in high quality assets
A unique thematic approach to invest in high quality fixed income.
Invest in high quality assets
Lower correlation with other asset classes
Attractive yield levels
Investment-grade corporate bonds are issued by companies that are highly solvent and have relatively stronger balance sheets.
IG corporate bonds have historically proven very resilient to volatile markets.
Source: Bloomberg
Global Equities – MSCI AC World Index
Global High Yield Corp Bonds – Bloomberg Barclays Global High Yield Corporate Total Return Index (Hedged USD)
Global IG Corp Bonds – Bloomberg Barclays Global Aggregate Corporate Total Return Index (Hedged USD)
2015 Oil Slump and Chinese Currency Devaluation – Period: May 18, 2015 – Sep 29, 2015
2018 US-China Trade Tension – Period: Sep 21, 2018 – Dec 24, 2018
2020 COVID-19 – Period: Feb 19, 2020 – Mar 23, 2020
Generally, investment-grade bonds have lower correlation with other asset classes (especially risky assets), so they may diversify risks in an investor's portfolio.
Source: Bloomberg, as of March 31, 2024. IG Bonds = Bloomberg Barclays Global Aggregate Corporate Index (Hedged USD); US Equities = S&P 500 Index; Global Equities = MSCI World Index; Asia (ex-Japan) Equities = MSCI AC Asia (ex-Japan) Index; HK Equities = Hang Seng Index; High Yield Bonds = Bloomberg Barclays Global High Yield Corporate Index (Hedged USD)
Global investment grade corporate bonds yield more than 5% (on an index level*), which is higher than the pandemic level and the last tightening cycle level in 2018.
Currently, corporate fundamentals in IG are in good shape because:
Source: BlackRock Aladdin, as of 26 April 2024
*Bloomberg Global Aggregate Corporate USD Hedged Total Return Index
Current Exposure**
** Source: Invesco, as of March 31, 2024
^Bloomberg Barclays Global Aggregate Corporate Index (Hedged USD)
Source: Invesco, as of March 31, 2024. Portfolio weightings and allocations are subject to change. The weightings for each breakdown are rounded to the nearest tenth or hundredth of a percent; therefore, the aggregate weights for each breakdown may not equal 100%.
The Fund uses a thematic approach to identify opportunities to generate alpha.
Key Themes | Portfolio Implications |
---|---|
Transition from stagflation into stagnation | Focus on subordinated debt over senior Falling rate environment should be supportive of callable securities |
Credit Cycle Differentiation | Preference for Europe, UK and Asia over US |
Financial deleveraging |
European capital regulations promote balance sheet strength Target high quality core European banks |
For illustrative purposes only. There is no guarantee that the securities/industries/regions mentioned above are currently held or will be held by Invesco funds in the future. It does not represent a recommendation to buy/hold/ =sell the securities/industries/regions.
Share classes with monthly distribution^^^ (Aims to pay dividend on monthly basis. Dividend is not guaranteed. Dividend may be paid out of the capital. Refer to Note 1 and/or Note 2 of the above Important Information)
Class of Units | Record date | Amount per month (in fixed cents) |
Annualized dividend (%) |
ISIN |
---|---|---|---|---|
A(USD)-MD1 | 28/03/24 | USD 0.0510 | 7.93% | LU2110299513 |
A(HKD)-MD1 | 28/03/24 | HKD 0.5030 | 7.86% | LU2110299786 |
A(AUD Hgd)-MD1 | 28/03/24 | AUD 0.0490 | 6.95% | LU2139469782 |
A(RMB Hgd)-MD1 | 28/03/24 | RMB 0.3650 | 5.95% | LU2110299943 |
A(EUR Hgd)-MD1 | 28/03/24 | EUR 0.0550 | 6.43% | LU2658256727 |
A(GBP Hgd)-MD1 | 28/03/24 | GBP 0.0680 | 7.90% | LU2658256990 |
#Aims to pay dividend on monthly basis.
^^^Source: Invesco as at March 31, 2024. Past Performance is not a guide to future returns.
Annualized dividend (%) = (Amount/Share X Frequency) ÷ Price on record date. Upon dividend distribution, the Fund's net asset value may fall on the ex-dividend date. For Frequency, Monthly = 12; Quarterly = 4; Semi-Annually = 2; Annually =1. All distributions below USD 50/AUD 50/HKD 400/RMB 400 will be automatically applied in the purchase of further shares of the same class. Positive distribution yield does not imply a positive return.
The launch date of A (EUR Hgd)-MD1 and A (GBP Hgd)-MD1 Shares class was 30/08/2023.