Embark on the journey to a low carbon world with this mixed asset fund, combining fixed income and global equities.
See all product detailsThe Invesco Transition Global Income Fund aims to support the transition to a low carbon economy over the medium to long term with a view to supporting the long-term goals of the Paris Agreement. As part of achieving its sustainable investment objective the fund has a flexible allocation of debt securities and global equities.
The fund has sustainable investment as its objective and picks green leaders in no matter which sector they’re in.
The portfolio managers can invest across wherever they see the most attractive opportunities across both bonds and equities.
The fund does not follow an index and invests globally.
As we move towards a net-zero world, winners and losers will emerge as some businesses flourish and others fail to adapt. Companies that are ill prepared or incompatible with the new economy could suffer defaults, losses and impairments. We select companies with strong climate characteristics that are well positioned for the future. We believe this will help to reduce investment risk over the long-term.
Not all sustainable companies issue green bonds and so we don’t restrict ourselves to only green bonds. For example, if a company we like issues green and non-green bonds, we choose which offers the best value.
Furthermore, we can finance companies in carbon intensive sectors if they are going a step further than their peers in their efforts to reduce emissions. Good examples of this include companies in the power and automotive sectors. We believe that this is the best way to encourage real world change.
As well as delivering on our climate objective, we aim to provide income and growth by investing in bonds and equities globally. We allocate between 35% and 65% to debt securities from across the credit spectrum, with the rest of the portfolio in global equities. One of the benefits of including an equity component is that it has the potential to deliver capital growth as well as dividend income.
The investment concerns the acquisition of units in an actively managed fund and not in a given underlying asset. 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.
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 invest in distressed securities which carry a significant risk of capital loss. The fund may invest in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events. The lack of common standards may result in different approaches to setting and achieving ESG objectives. In addition, the respect of the ESG criteria may cause the Fund to forego certain investment opportunities.
Bond markets generally performed well in February, although there were varying outcomes across different regions. Read our latest thoughts on how fixed income markets fared during the month and what we think you should be looking out for in the near term.
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.
Significant focus on the uncertainty of the US macroeconomic backdrop and its potential headwinds on the market remain top of mind for investment opportunities globally. Against this cautious outlook, we asked the experts from Invesco’s bank loan, direct lending and distressed credit teams to share their views as the first quarter of 2025 begins.
Portfolio managers Edward Craven, Alexandra Ivanova, Stephen Anness and Andrew Hall bring a combined 80+ years of industry experience. They are members of the Henley-based investment teams and have worked together for several years. They draw on the support of their colleagues in the fixed interest and global equities teams. Invesco’s global ESG team is also available to provide support and analysis.
This fund takes a very active approach to stock picking and security selection. We are seeking to finance companies that can make a difference.
To fulfil the goals of the Paris Agreement, countries, corporates and consumers will have to take steps to reduce their carbon footprints. The switch from a carbon-intensive economy will require huge public and private sector investment in innovative technology and green infrastructure. Meanwhile, any delay in the transition to net zero could exacerbate the climate crisis and pose risks to portfolios and assets. Investment portfolios and asset allocation will increasingly reflect the realities of the transition to net zero.
Green bonds are debt securities designed to finance climate and environmental projects. For example, they may support energy efficiency, sustainable agriculture, clean transportation, sustainable water management, and so on.
Green bonds can be good at promoting ESG outcomes, however it is also important to remember that some companies which are sustainable don’t issue green bonds. That’s why we don’t restrict ourselves to green bonds only in our management of the fund. Instead, we form our own judgement on a company’s financial and green credentials. For example, if a company we like issues green and non-green bonds, we can choose which is the best value.
One benefit of the bond portion of a mixed asset portfolio is that it has the potential to deliver a steady income stream while offsetting stock market volatility. Meanwhile, a benefit of the equity component is that it has the potential to deliver shareholder value.
SFDR stands for Sustainable Finance Disclosure Regulation. This is a European regulation that came into effect in 2021. Its aim is to increase transparency around sustainable investment products and to reduce the risk of greenwashing. Funds are classified as Article 6, Article 8 or Article 9 depending on their ESG approach.
Article 9 is deemed the ‘greenest’ categorisation. To be categorised as Article 9, a fund must have sustainable investing or carbon reduction as part of its investment objective.
Data as at 31.8.2024, 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.
EMEA3851141/2024
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