An unconstrained, globally diversified, total return bond fund with a multi-sector, multi-currency flexible approach.
See all product detailsIn today’s volatile markets we see plenty of opportunities in global fixed income markets and currency strategies that can be exploited. But timing and flexibility will be key. Unconstrained flexible bond products such as the Invesco Global Flexible Bond Fund can take advantage of dislocations in financial markets. They have the potential to deliver strong risk adjusted returns by better navigating an increasingly uncertain landscape than traditional bond funds.
“True” Multi-Sector fund with dynamic rotation across fixed income sectors.
A philosophy and process developed over a 20-year investment career, macro driven investment themes drive strategic positioning.
Invesco Fixed Income is comprised of around 180 investment professionals averaging 18 years in the industry and 12 years with Invesco.
The investment team’s thematic investment philosophy and process have developed over a 20-year investment career. The team develops specific investment views and related trade ideas to exploit 3 to 5 key strategic investment themes that we believe will drive markets over the next 3 to 12 months. These themes shape the risk profile and investment strategy of the portfolio. Thus, the investment process is coherent, transparent and repeatable. And a robust risk management framework accounts for downside scenarios and alternative states.
Access the Invesco Global Flexible Bond Fund product page to view KIDs/KIIDs and factsheets . Any investment decision should take into account all the characteristics of the fund as described in the legal documents.
The thematic approach allows for the implementation of views across a wide range of alpha sources. We are rotating through these alpha sources and trade ideas as they play out within a theme, exploiting relative value strategies across the alpha levers within an investment theme.
The fund can invest in the full spectrum of the (UCITS compliant) fixed income universe and seeks to generate a higher level of alpha than traditional global aggregate portfolios.
There is no specific income target – a combination of income and capital gains will drive total return with a long term expected return of 400 to 500 bps above the Bloomberg Global Aggregate Index (USD hedged).
Invesco Fixed Income (IFI) is a well-resourced team that interconnects local market knowledge with a strong global perspective.
Our depth and breadth of expertise on the global platform of the whole fixed income universe is expertly covered with dedicated local teams covering all the major geographic regions and has a significant depth in traditional developed market fixed income as well as in Asian Credit, Emerging Markets, structured securities, bank loans and municipal bonds.
IFI’s Global Multi-Sector Team responsible for managing the fund has specialists covering macro, rates, foreign exchange and fixed income asset allocation and is managing over USD 5bn. The team is additionally able to draw upon the full depth of expertise from the wider platform in sourcing investment ideas.
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. 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. Investments in debt instruments which are of lower credit quality may result in large fluctuations in the value 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. 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. 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.
Bond markets generally struggled in October as the market reevaluated the interest rate outlook, following a strong rally leading up to the Federal Reserve’s first rate cut. 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.
Catch up on monthly fixed income insights from our emerging market local debt team.
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.
The Global Multi-Sector Team has been together in its current form since 2017. Responsibility for the portfolio management of the fund rests with the Invesco Global Multi-Sector Portfolio Management Team, which has been together in its current form since 2017. However, many of the global fixed income team – defined as portfolio management and credit research – have worked collectively for almost a decade. Gareth Isaac, Head of Multi Sector Portfolio Management, Developed Markets, is a named Portfolio Manager, alongside Senior Portfolio Managers Tom Sartain and Michael Siviter.
Attractive bond yields, high market volatility, diverging economic outlooks and geopolitical uncertainties are all providing great opportunity for the active bond management of a global flexible bond strategy.
Investors looking to add fixed-income securities to their portfolios have several options. Today, most brokers offer customers direct access to a range of bond markets. For those who do not want to select individual bonds, fixed-income mutual funds (bond funds) provide exposure to various bonds and debt instruments. These funds give the investor an income stream and professional portfolio management.
Fixed-income securities are recommended for conservative investors seeking a diversified portfolio. The percentage of the portfolio dedicated to fixed income depends on the investor's investment style. An investor might also choose to diversify their portfolio with a mix of fixed-income products and stocks, creating a portfolio of, for example, 50% fixed-income products and 50% stocks.
The interest payments from fixed-income products can help investors stabilize the risk-return in their investment portfolio—known as the market risk. For investors holding stocks, fluctuating prices can result in large gains or losses. The steady and stable interest payments from fixed-income products can partly offset losses from the decline in stock prices. As a result, these safer investments help to diversify the risk of an investment portfolio.
The Morningstar Definition of the Global Flexible Bond category with the Bloomberg Global Aggregate TR index as the respective category index is as follows:
Global Flexible Bond funds have the flexibility to invest across a range of bond types and can exhibit significant risk concentrations. Such concentrations may include, but are not limited to, large exposures to non-investment grade and emerging-markets debt. The funds may take unlimited foreign currency exposure as part of their investment program.
Obviously, this wide definition leads to a diverse set of funds and strategies claiming flexibility.
The Invesco Global Flexible Bond Fund invests in the full spectrum of the (UCITS compliant) fixed income universe, selecting from a broad array of security types within the global fixed income market. The fund seeks to generate a higher level of alpha than traditional global aggregate approaches by allocating with conviction across currencies, rates and credit sectors.
Fixed income funds with a global flexible mandate such as the Invesco Global Flexible Bond Fund aim to maximise total return over a market cycle. They are not tied to a benchmark and are not biased towards any specific fixed income sector or region. They can have active exposures to interest rate, credit and currency markets (both long and short positions) and flexible duration management. Duration is a measurement of interest rate risk. It considers a bond’s maturity, yield, coupon and call features.
Global flexible fixed income funds typically appeal to investors looking for a core fund providing growth over the longer term and willing to accept higher market risk, including institutional investors, fund buyers and sophisticated fund sellers.
Data as at 30.09.2024, 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.
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