Alternatives
Yields maintain record highs and offer positive relative value
Invesco’s bank loans, direct lending and distressed credit teams to share their views as the second quarter of 2024 wraps up.
12 June 2024
Fixed Income
Introducing the Invesco Global Income Fund
Target a balance of income and capital growth over the long term with this global mixed asset fund.
Navigate uncertainty with a flexible approach
Bonds are now offering income opportunities not seen since the global financial crisis. But market volatility hasn’t gone away – which means flexibility is as important as ever. This fund has the ability to flex its asset allocation across regions and between asset classes.
Video about income and Invesco’s mixed assets
Transcript
After years of low and falling yields, today’s higher interest rates environment means that bond yields are more attractive again. And fixed income is offering some of the best opportunities since the global financial crisis.
But market volatility hasn’t gone away, which means flexibility is as important as ever.
Following years of low interest rates and falling bond yields, inflation is building. This might mean higher interest rates and potential volatility in markets.
Adaptability is required to navigate this investment backdrop whilst finding opportunities to generate a sustainable income.
So whether it’s school fees, buying property, or funding a comfortable retirement, we believe our flexible mixed asset strategies can help achieve your objectives.
Mixed asset strategies combine highly active fixed income and equity allocations, with the aim of producing optimum income levels.
Bonds seek to deliver a steady income stream whilst offsetting equity volatility. Meanwhile, equities can give exposure to the typically higher returns produced by stock markets.
Asset allocation can change depending on market conditions and is critical to the success of the strategies. Without the constraints of benchmarks, we can flex to become more defensive or offensive.
Over 20 years’ experience in mixed asset investing gives us confidence operating across the fixed income and equity spectrum. That means we can decisively make the right calls and adjust the weightings.
When we build our portfolios, we aim to find opportunities that provide a reward for taking calculated risks.
This means hunting for examples of mispricing caused by market inefficiencies. And our research helps unearth bonds with strong balance sheets and predictable potential cashflows.
We don’t have biases and instead operate an unconstrained approach. Not having credit, sector or geographical limitations allows us to go further in the search for yield.
The equity allocation is predominantly focused on companies with the ability to pay strong and sustainable dividends. We target companies with visible revenues and profits that create shareholder value.
This broader remit, including scope to use derivatives as a means of finding additional income, is designed to help deliver strong returns relative to competitors.
By seeking out these fixed income and equity investments, we aim to provide you with the opportunity to benefit from the best of both worlds.
So, as markets enter a new phase of uncertainty, it might be time to take a fresh look at our mixed asset income solutions. Our focus on selecting the best income opportunities could play a key role in achieving your desired outcome.
Explore our flexible strategies now.
Focus on the fundamentals
We believe markets are mostly efficient but often present mispricing opportunities. So, we target consistent, long-term outperformance through an emphasis on valuation.
The fund is unconstrained, which means we can select whichever bonds and equities we want, without following an index.
Three reasons to choose the Global Income Fund
We allocate between 35% and 65% to debt securities from across the credit spectrum with the rest of the portfolio in global equities. The equity component seeks to deliver shareholder value via sustainable and growing dividends or purely capital growth, and the allocation can be adjusted depending on market conditions.
Put simply, we aim to provide you with income and growth over the medium to long term by taking advantage of both bonds and equities.
We aim to generate income and growth by investing in a diversified portfolio of high yield and investment grade bonds. At the same time, we seek to grow your money through exposure to stock markets.
The fund was launched in 2014 and has experienced multiple investment cycles. Access the Invesco Global Income Fund product page to view KIIDs/KIDs and factsheets.
ESG risks are also considered and actively managed, and the fund is classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR). Any investment decision should take into account all the characteristics of the fund as described in the legal documents. For sustainability related aspects, please refer to www.invescomanagementcompany.lu.
Alexandra Ivanova and Stuart Edwards, who manage the portfolio’s asset allocation and fixed income investments, each have over 20 years’ experience in bond markets. Stephen Anness manages the equity allocation with 20 years’ experience in this area.
Their approach is flexible and market-driven. They focus on absolute risk and return without the constraint of an index.
The investment concerns the acquisition of units in an actively managed fund and not in a given underlying asset.
Investment risks
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For complete information on risks, refer to the legal documents. 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.
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.
12 June 2024
Fixed Income
Euro Corporate Bonds: how we’re positioning portfolios in the current market
Julien Eberhardt, Fund Manager, in the Invesco Fixed Income Europe team shares his thoughts on the key headwinds that have impacted bond market performance in 2024. Find out why he is more positive on rates in Europe than the US and in cautious on credit risk and how this is influencing his management of the Invesco Euro Corporate Bond Fund in our Q&A.
10 June 2024
Fund facts
The team has more than 25 years of experience managing mixed asset funds. Today, the fund’s AUM totals > €1.3bn, and is invested across a 35-65% allocation to both fixed interest and equities.
Attractive risk-adjusted return potential
Diversification benefits
Large opportunity set
How can we help?
Let us know using this form and one of our specialist team will quickly get back to you.
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Frequently asked questions
One benefit of the bond portion of a mixed asset portfolio 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.
Diversification is the main benefit of global investing. A diversified portfolio acts as a source of stability during market volatility. Moreover, the investment universe is not limited from a geographical perspective and the fund managers can invest where they see the best opportunities globally.
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 products and to reduce the risk of greenwashing. Funds are classified as Article 6, Article 8 or Article 9 depending on their ESG approach.
Article 8 applies to funds promoting environmental and social objectives and which take more into account than just sustainability risks as required by article 6. However, article 8 funds don't have ESG objectives or core objectives – as required for becoming labeled an article 9 fund.
Important Information
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Data as at 30.11.2023, 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.
EMEA3265747/2023
