We seek opportunities along the entire credit risk spectrum to boost income.
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 flexible bond fund aims to provide you with income and capital growth over the medium to long term.
Combat the challenges of a low-yield world by diversifying your income exposure through bonds and some equities. Taking advantage of the higher yields available in some bond markets, this flexible bond fund aims to provide you with income and capital growth over the medium to long term.
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.
The fund marked 25 years since inception in February 2024. During that time, it has delivered a high level of income as part of a strong total return. Click the button below to see what the fund could have done for you in 25 years…
We believe markets are mostly efficient but often present mispricing opportunities. So, we look for 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.
Aside from high-yield bonds, corporate bonds and government bonds, we invest in global equities with strong balance sheets and attractive dividend yields. We adjust the equity position 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 seek to generate a high level of income from various parts of the credit spectrum.
At the same time, the fund provides you the potential to capture the capital growth offered by stock markets. We favour companies with visibility of revenues, profits and cash flows. These aspects should help us deliver shareholder value in the form of a sustainable and growing dividend.
The fund was launched in 1999 and has experienced multiple investment cycles. Access the Invesco Monthly Income Plus Fund (UK) product page to view KIIDs and factsheets.
Rhys Davies, who manages the fund’s asset allocation and fixed income investments, has over 21 years’ industry experience. The fund’s equity portion is managed by Ciaran Mallon who has over 29 years’ experience across different market conditions and cycles.
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.
Rhys Davies, Co-Fund Manager, Invesco Monthly Income Plus Fund (UK)This fund seeks to produce regular income which investors can receive monthly. This is one of our most established strategies with a long track record.
The portfolio managers have 50 years of combined experience. Today, the fund’s AUM totals >£1.9bn. The fund has one of the highest income yields in its peer group.
Let us know using this form and one of our specialist team will quickly get back to you.
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. As one of the key objectives of the fund is to provide income, the ongoing charge is taken from capital rather than income. This can erode capital and reduce the potential for capital growth. 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 marketing communication is for Professional Clients only and is not for consumer use.
Data is as at 31/10/2023 and sourced from Invesco 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 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 financial reports and the Prospectus, which are available using the contact details shown.
Issued by Invesco Fund Managers Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK. Authorised and regulated by the Financial Conduct Authority.
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