This Pan-European mixed asset strategy flexibly allocates at least 50% to European investment grade and high yield bonds and the remainder in European equities, seeking to benefit from fixed income and equity opportunities across Europe.
See all strategy detailsThe Invesco Pan European High Income Fund is a diversified income-oriented strategy, which uses a flexible approach to find what we believe are the best investment opportunities in Europe. The strategy actively manages its exposures to European investment grade and high yield bonds and to European equities according to market conditions.
The strategy managers can invest where they see the most attractive opportunities in both bonds and equities.
The strategy’s risk profile is actively managed.
The team has more than 25 years of experience of managing mixed asset strategy.
Invesco’s Fixed Income team has a 30-year track record of investing in corporate and higher yielding bonds. The strategy invests in European investment grade corporate bonds, European high yield bonds, subordinated debt issued by financials and in European equities.
The equity team also enjoys a long track record with equity strategy manager Oliver Collin having over 20 years of investment experience. Oliver is supported by the Henley-based Invesco European Equities team to pick the best dividend-oriented opportunities.
The strategy is free from having to track a benchmark index and the strategy managers tilt the asset allocation according to market conditions and where they believe the best value is to be found.
Bonds with strong balance sheets and predictable cashflows form the income core of our strategy. The equity allocation aims to deliver additional income, diversification and enhanced returns. It can be adjusted depending on current market conditions.
The equity allocation is predominantly focused on Europe-based companies with the ability to pay strong and sustainable dividends. The exposure to equities can be adjusted depending on current market conditions.
Access the Invesco Pan European High Income Fund strategy page to view KIIDs/KIDs and factsheets. The investment concerns the acquisition of units in an actively managed strategy and not in a given underlying asset.
As a large portion of the strategy is invested in less developed countries, you should be prepared to accept significantly large fluctuations in value.
The strategy will invest in derivatives (complex instruments) which will result in leverage and may result in large fluctuations in value.
Debt instruments are exposed to credit risk which is the ability of the borrower to repay the interest and capital on the redemption date.
Investments in debt instruments which are of lower credit quality may result in large fluctuations in value.
Changes in interest rates will result in fluctuations in value.
The strategy may invest in distressed securities which carry a significant risk of capital loss.
Investment in certain securities listed in China can involve significant regulatory constraints that may affect liquidity and/or investment performance.
Each month, our experts share their views on the emerging market (EM) local debt asset class. Read their outlook and discover which markets they believe are presenting the most attractive opportunities.
Bond markets struggled in March, primarily due to concerns about the potential impact of upcoming US policies. Read our latest thoughts on how fixed income markets fared during the month and what we think you should be looking out for in the near term.
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.
Thomas Moore and Alexandra Ivanova, who manage the strategy’s asset allocation and fixed income investments, each have over 20 years’ experience in bond markets. Oliver Collin manages the equity allocation, and also has over 20 years’ investment experience. Their approach is flexible and market-driven. They focus on absolute risk and return without the constraint of an index.
Following the sharp increase in interest rates in 2022 and 2023, we now have some of the best opportunities for fixed income investing we’ve seen in the last decade, along with the income and capital growth offered by the European equity market. This is an exciting environment for the management of mixed asset strategies.
One benefit of the bond portion of a mixed asset strategy is that it has the potential to deliver a steady income stream while offsetting stock market volatility. Meanwhile, a benefit of the equity component is that it has the potential to deliver higher returns in the long term.
The level of income offered by European bonds is once again attractive, and fundamentals for European companies remain strong in our view.
The disparity between the price-to-earnings ratios in Europe and the US suggests that European companies may be undervalued and European equities therefore present an opportunity for investors seeking equity exposure away from the premium prices of the US market.
SFDR stands for Sustainable Finance Disclosure Regulation. This is a European regulation that came into effect in 2021. Its aim is to increase transparency around sustainable investment strategies and to reduce the risk of greenwashing. Strategies are classified as Article 6, Article 8 or Article 9 depending on their ESG approach.
Article 8 applies to strategies promoting environmental and social objectives and which take more into account than just sustainability risks as required by article 6. However, article 8 strategies don't have ESG objectives or core objectives – as required for becoming labeled an article 9 strategy.
Data as at 28.02.2025, 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.
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