We look for good quality companies and invest in their investment grade debt. Without benchmark or duration constraints, we’re free to adapt to changing market conditions.
Bonds are now offering income opportunities not seen since the global financial crisis. And investors aren’t having to take on too much credit risk to gain exposure to these, with companies having entered this period with reasonable balance sheet strength.
This fund’s track record is over 25 years long – one of the longest in the industry. Over this time, our fund managers have shown their expertise in managing credit and interest rate risk.
We combine a top-down assessment of market valuations with the fundamental research of our experienced credit analyst team. Our focus is on delivering attractive risk-adjusted returns.
We follow a benchmark-agnostic investment process, which gives us the flexibility to adapt to changing market conditions. We actively manage credit and duration risk, exploiting opportunities on a short-term tactical and long-term strategic basis.
We carry out thorough credit analysis, combining internal and external research, to find good quality companies with attractively valued bonds. The aim is to maximise returns through acceptable and well-understood credit risk exposure.
We consider the risk/return profile of any bond relative to cash, core government bonds and the rest of the fixed income universe. We only take risks that we feel will be adequately rewarded.
Our approach is flexible, pragmatic and market driven. We focus on absolute risk and return and are not constrained by an index.
Our time-tested approach is based on fundamental analysis, with a strong emphasis on valuation. Our fund managers are supported by a well-resourced team of analysts
For performance information and KIIDs, please refer to the Invesco Corporate Bond Fund (UK) product page.
Competing forces in the high yield bond market
Rhys Davies, fund manager, explores why his fund's exposure to B-rated and lower bonds is at historic lows, citing good yields in higher rated bonds and the risks with lower credit bonds.
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.
Monthly fixed income update
June saw a resurgence in political risks with a snap election called in France, the upcoming general election for the UK, and the first televised debate between Trump and Biden ahead of the presidential election in the US. Read our latest thoughts on how fixed income markets performed during the month and what we think you should be looking out for in the near term.
Michael Matthews and Tom Hemmant are responsible for managing the fund, supported by the rest of Invesco’s Fixed Income Team. Together, the two fund managers have over 50 years of industry experience.
Michael MatthewsWith a flexible mandate and strong credit management expertise, we believe we’re well positioned to target good, long-term risk-adjusted returns.
This fund was launched in 1995. Today its assets under management total >£1.6 billion, invested primarily in investment grade debt securities.
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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. The securities that the fund invests in may not always make interest and other payments nor is the solvency of the issuers guaranteed. Market conditions, such as a decrease in market liquidity for the securities in which the fund invests, may mean that the fund may not be able to sell those securities at their true value. These risks increase where the fund invests in high yield or lower credit quality bonds. The fund has the ability to make use of financial derivatives (complex instruments) which may result in the fund being leveraged and can result in large fluctuations in the value of the fund. Leverage on certain types of transactions including derivatives may impair the fund’s liquidity, cause it to liquidate positions at unfavourable times or otherwise cause the fund not to achieve its intended objective. Leverage occurs when the economic exposure created by the use of derivatives is greater than the amount invested resulting in the fund being exposed to a greater loss than the initial investment. The fund may be exposed to counterparty risk should an entity with which the fund does business become insolvent resulting in financial loss. The fund may invest in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events. The fund’s performance may be adversely affected by variations in interest rates.
This is marketing material and 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. All data is as at 31.12.2023 and sourced from Invesco unless otherwise stated. Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. For the most up to date information on our funds, please refer to the relevant fund and share class-specific Key Investor Information Documents, the Supplementary Information Document, the Annual or Interim Reports and the Prospectus, which are available using the contact details shown.
EMEA3362408/2024
