Insight

Performance during the Covid-19 outbreak

7 August 2020
Lewis Aubrey-Johnson
Lewis Aubrey-Johnson
Head of Fixed Income Products
Performance during the Covid-19 outbreak
Performance during the Covid-19 outbreak

The Invesco Global Total Return (EUR) Bond Fund performed well in its peer group during the Covid-19 led market sell-off, it having only modest amounts of credit risk and sufficient duration. As illustrated in figure 1, the fund’s drawdown was much shallower than many of its peers and much of the loss has now been recovered with year to date returns to the end of June positive for the fund. 

Figure 1. Invesco Global Total Return (EUR) Bond drawdown and recovery
Figure 1. Invesco Global Total Return (EUR) Bond drawdown and recovery
Past performance is not a guide to future returns. Source: Lipper. Data as at 31 May 2020

At the start of the period, two-thirds of the fund was allocated to cash, core government bonds and bonds maturing within 1-year). 28% was held in credit risk with the two largest exposures, subordinated financials and emerging market bonds. Currency exposure included some emerging markets as well as oil producers such as Norway.

Standardised rolling 12 month performance

  30-06-15
30-06-16		 30-06-16
30-06-17		 30-06-17
30-06-18		 30-06-18
30-06-19		 30-06-19
30-06-20
Invesco Global Total Return (EUR) Bond -0.71 4.15 -1.63 4.98 2.52
GIFS Global Flexible Bond -0.20 3.34 -1.99 2.68 -0.33

Past performance is not a guide to future returns. Data as at 30 June 2020. Fund performance figures are shown in euros, inclusive of reinvested income and net of the ongoing charges and portfolio transaction costs. The figures do not reflect the entry charge paid by individual investors. Sector average performance is calculated on an equivalent basis. Source: Invesco, © Morningstar 2020. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is no guarantee of future results. The performance data shown does not take account of the commissions and costs incurred on the issue and redemption of units. Any reference to a ranking, a rating or an award provides no guarantee for future performance results and is not constant over time. 

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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. 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 extensively in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events. 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.

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