US Mortgage-Backed Securities

Investment Objective:

To outperform the Barclays U.S. MBS Index by 40 basis points on average per year. We focus on producing returns consistently by seeking to reduce volatility in the portfolio. Securities are ‘AAA'-rated and primarily fixed rate.

The Invesco Edge:

  • Extensive global platform, essential for successful fixed-income portfolio management
  • Distinct investment culture and approach focused on diversified alpha generation
  • Flexible delivery of investment solutions to meet global and local client needs

Investment Strategy:

The U.S. Mortgage Backed Securities product is a strategy for investors who seek focused exposure to the mortgage-backed sector or diversification of fixed income holdings. It is an actively managed, total return strategy designed to achieve returns while managing volatility and stability.

US Mortgage Backed securities are the primary sectors, although commercial-mortgage and asset-backed securities may be used as well. Duration is designed to range from +/- 0.5 years around the benchmark. Fixed rates will comprise most of the securities, although floating-rate securities may be used. Duration, maturity selection, sector allocation, spread volatility and security selection are each potential sources of return.

The US Mortgage Backed Securities strategy is available in a separate account.