Fund Manager Julien Eberhardt
MFin, CFA
Introducing the Invesco Global Total Return (EUR) Bond Fund
This flexible bond fund invests without sector, regional or asset class constraints, adapting its asset allocation to reflect changing market conditions.
See all product detailsThe opportunity for investors
Government and better-quality corporate bonds still offer a relatively attractive yield, despite having declined as interest rates have begun to be cut. With credit spreads, the additional yield over government bonds remaining low, we believe the backdrop remains supportive without needing to take on too much credit risk. Further interest rate cuts should act as a positive tailwind. The flexibility the fund has will allow the manager to reshape the fund as opportunities arise.
Flexibility is our philosophy
We have more flexibility to change the portfolio’s asset allocation than traditional fixed income funds.
Active duration management
Without duration restrictions, we can mitigate risk or take advantage of opportunities.
Attractive risk-adjusted return potential
We align risk and reward through our adaptable and opportunistic bond market allocations.
Why this fund?
The fund’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 fund’s 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 hikes on portfolio performance and volatility when yields are low.
Meanwhile, when we think rates look more attractive, we aim to take advantage of the returns on offer.
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.
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.
Launched in 2010, this fund has navigated a wide range of market environments. For performance information and KIIDs, please refer to the Invesco Global Total Return (EUR) Bond Fund product page.
Investment risks
-
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.
Meet the team
Julien Eberhardt and Asad Bhatti are responsible for managing the fund, supported by the rest of Invesco’s Fixed Income Team. Together, Julien and Asad have a combined 40+ years of industry experience.
The mandate we have in this fund really allows us to align risk with reward across a range of market environments.
Related products
Frequently asked questions
Diversification – Bonds have played an essential role in diversifying investor portfolios and helping to mitigate portfolio losses during periods of negative equity returns.
Income generation – bonds provide a fixed amount of income at regular intervals in the form of coupon payments.
Total return refers to interest, capital gains, dividends, and distributions realized over a given period of time. Investors more concerned with the total return will likely choose to focus on portfolio growth as opposed to the income generating aspect of a security, such as dividends, interest or coupons.
Duration measures the sensitivity of a bond to changes in interest rates. Time to maturity and a bond’s coupon rate are two factors that affect a bond’s duration. Generally, the higher a bond’s duration is, the more its price will increase when interest rates fall and vice-versa.
A fixed-income portfolio’s duration is computed as the weighted average of individual bond durations held in the portfolio – portfolio duration can therefore be actively managed by fund managers to reduce or increase portfolio risk as they see fit.
Explore the team's latest insights
Fixed Income 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.
November 5, 2024
Insurance Why Bank Loans for insurance companies?
Discover why senior secured loans offer insurers high income, low risk, and strong fundamentals. Improving returns and reducing capital charges.
October 23, 2024
Fixed Income The future of fixed income investing; takeaways from our webinar
As we enter the final quarter of the year, our experts look back at the ‘year of the bond market’ and share their thoughts on the outlook for Fixed Income assets going forward.
October 16, 2024
Important information
-
Data as at 31.10.2024, 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.
EMEA3991610/2024
How can we help?
Let us know using this form and one of our specialist team will quickly get back to you.
