Fixed Income Invesco Global Investment Grade Corporate Bond Fund

A globally diversified corporate bond fund, aiming to deliver income and capital growth opportunities.
Why this fund?
Melbourne

A world of opportunity

The fund's truly global approach increases the opportunity set available versus a regionally focused strategy. Based on research, the team seeks to identify structural and tactical themes which drive credit markets to achieve compelling risk-adjusted returns. As well as benefitting from no geographical constraints, we are free to allocate up to 20% of the fund to high yield bonds (no lower than BB at purchase), if the macroeconomic and issuer-specific circumstances look attractive. We typically use this allowance to invest down the capital structure in high yield bonds that are issued by investment grade companies.

Large opportunity set

The fund offers a globally diversified approach to investment grade corporate bond investing.

Theme based philosophy

Themes drive over- and underweights across regions, sectors and capital structure versus the benchmark.

Deep and experienced team

Invesco Fixed Income is comprised of 180+ investment professionals managing over
US$ 500 bn.

Why this fund?

  • Reduce risk

    We focus on investment grade corporate bonds, issued by companies that are highly solvent with strong or improving fundamentals. The default risk on these sorts of securities is typically low, with defaults very rare for investment grade issuers.

    Within our portfolios, we invest across a broad range of sectors and geographies. This helps ensure good diversification.

    Any investment decision should take into account all the characteristics of the fund as described in the legal documents. For sustainability related aspects, please refer to www.invescomanagementcompany.lu. The investment concerns the acquisition of units in a fund and not the underlying asset. The fund is actively managed. It is not managed in reference to a benchmark. 

     

  • Navigate the big themes driving economies

    Unlike traditional corporate bond managers, we don’t just focus on market timing and security selection. Instead, we go further. We identify the big themes driving economies and use this analysis to help drive our issuer selection. These themes could include things like:

    • Decarbonisation/net zero transition
    • The impact of Russia’s war on the energy and utilities sectors
    • The transition of global economies from stagflation to stagnation
    • And so on…

    We also implement “macro overlays” to manage the overall risk of the fund through the cycle. This involves using derivatives, which help reduce transaction costs compared to trading in and out of corporate bonds.

  • Benefit from our sustainable investing expertise

    Our approach to sustainable investing is rooted in a belief that evaluating the criteria leads to better long-term risk-adjusted returns. Our credit analysts are tasked with understanding the ESG drivers for the companies they cover and conducting ESG-based analysis along with their fundamental financial analysis.

    We also work closely with Invesco’s Global Sustainable Investing team, which coordinates engagement activity across the firm and provides additional support, data and analysis.

     

  • 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 contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events. 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. As this fund is invested in a particular sector, you should be prepared to accept greater fluctuations in the value of the fund than for a fund with a broader investment mandate. 

Fund managers

Lyndon Man and Luke Greenwood have led the management of the fund since 2013, with Matthew Henly joining in 2021. Lyndon and Luke have a combined 50+ years of industry experience and have navigated a broad range of economic cycles.  They draw on the resources of Invesco’s global fixed income platform.

Lyndon Man, Fund Manager


I believe our thematic approach to investing will be key to delivering attractive risk-adjusted returns going forward.”

Lyndon Man
Fund Manager

 

 

Frequently asked questions

The term “investment grade credit” is used to describe corporate bonds that have been issued by high quality companies. The three main rating agencies use slightly different definitions. Moody’s defines investment grade securities as having a rating of Baa3 or higher. Meanwhile, Standard & Poor’s and Fitch define it as BBB- or higher.

Investment grade corporate bonds can play an important role as income generators in investor portfolios. This made them popular with investors in the years following the global financial crisis when the world lived through a sustained period of low yields, or even negative yields on government debt.

They can also be good diversifiers. They represent a large portion of the global investment universe, which means they allow investors to gain exposure to a broad range of economic sectors and geographies. Furthermore, they typically exhibit significantly lower price volatility than equities.

When the economy takes a downturn, the risk that companies will be unable to meet their financial obligations increases. However, it is worth noting that defaults have historically been very low for IG credit. Even between 2008 and 2009, the default rate peaked at only 0.3-0.4% of the universe. The threat of credit downgrades is more common but can be mitigated with thorough credit analysis.

When the economy takes a downturn, high quality fixed income assets (government bonds and investment grade credit) tend to outperform more volatile/riskier parts of the market. This is partly because, when markets throw up challenges, many investors prefer relatively “safer” assets, which can better navigate periods of slowing growth. IG credit investors can benefit from these moves.

Related products

Related insights

How can we help?

Let us know using this form and one of our specialist team will quickly get back to you.

How can we help?

Your contact information.

When you interact with us, we may collect information about you which constitutes personal data under applicable laws and regulations. Our privacy notice explains how we use and protect your personal data.

How can we help?

  • Data as at 31.08.2025, 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.

    EMEA4800640/2025