Our Total Return strategies are designed to offer you a more flexible approach to investing in bonds compared to traditional fixed income funds. This flexibility allows us to take advantage of opportunities to effectively address your Total Return ambitions.
Our strategies aim to help you maximise total returns, 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, developed and emerging market, and cash across fixed income markets globally.
Flexibility is the cornerstone of our philosophy. We only invest when we believe the return potential is sufficient to compensate for the risk and adjust our asset allocation in response to market changes. This means that we sometimes reduce the market risk in our portfolios significantly, when we feel the reward is insufficient. This flexibility also allows us to actively manage various risks such as duration, credit, yield curve and currency risk, on both a short-term tactical and long-term strategic basis.
The investment concerns the acquisition of units in an actively managed fund and not in a given underlying asset. Costs may increase or decrease as result of currency and exchange rate fluctuations. Consult the legal documents for further information on costs. Read the investment risks at the end of the page.
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The total return on an investment includes interest, capital gains, dividends, and distributions realised over a given period of time. Therefore, Total Return strategies may be appropriate for investors seeking both current income and capital appreciation, through investment growth.
Yield is defined as the income return provided by the bond, which is the interest or dividends received, usually expressed annually as a percentage of the price of the bond.
Traditional bond strategies, such as high yield and investment grade, typically focus more on yield and seeking to generate an income while preserving the initial investment.
Total Return includes both income and appreciation of capital. Total Return investors typically focus more on the growth in their portfolio over time than on the yield in a given period. They will take distributions as needed from a combination of the income generated from the yield on various holdings and the price appreciation of securities.
Investors should understand the key differences between yield and total return so their portfolios are constructed to meet income-generating needs while providing a level of growth.
Duration is one of the fundamental characteristics of a bond, used to assess the sensitivity of a bond’s price to changes in interest rates.
A yield curve is a line that plots the yields or interest rates of bonds that have equal credit quality but different maturity dates.
It can be used as a benchmark for other interest rates in the market, such as mortgage rates and bank lending rates, and investors can use the yield curve to make investment decisions that factor in the likely direction of the economy.
Currency risk is the risk that investment performance may be adversely affected by variations in the exchange rates between the base currency of a portfolio and the currencies in which the investments are made.
Investments in Total Return strategies can be made by either investing in actively managed mutual funds or exchange traded funds (ETFs). Invesco offers a broad range of actively managed Total Return funds and ETFs.
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 in a dynamic way across assets/asset classes, which may result in periodic changes in the risk profile, underperformance and/or higher transaction costs.
Invesco Global flexible Bond Fund: The fund may invest in certain securities listed in China which can involve significant regulatory constraints that may affect the liquidity and/or the investment performance of the fund. The fund may hold a large amount of Asset Backed Securities (ABS) (complex instruments) as well as other lower quality debt securities which may impact the liquidity of the fund under certain circumstances. As a portion of the Fund may be exposed to less developed countries, you should be prepared to accept large fluctuations in the value of the Fund.
Invesco Global Total Return (EUR) Bond Fund: The fund may invest extensively in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events.
This marketing communication is exclusively for use by professional investors in Portugal. It is not intended for and should not be distributed to the public. Investors should read the legal documents prior to investing.
Data as at 31 October 2024, unless otherwise stated.
By accepting this material, you consent to communicate with us in English, unless you inform us otherwise.
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 invesco.eu. A summary of investor rights is available in English from 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.
For the full objectives and investment policy please consult the current prospectus.
Invesco Management S.A., President Building, 37A Avenue JF Kennedy, L-1855 Luxembourg, regulated by the Commission de Surveillance du Secteur Financier, Luxembourg. The issuer is authorised to provide financial services in Portugal and is regulated by the Commission de Surveillance du Secteur Financier, Luxembourg.
EMEA3991130/2024
