This Pan-European mixed asset fund flexibly allocates at least 50% to European investment grade and high yield bonds and the remainder in European equities, seeking to benefit from fixed income and equity opportunities across Europe.
The Invesco Pan European High Income Fund is a diversified income-oriented product, which uses a flexible approach to find what we believe are the best investment opportunities in Europe. The fund actively manages its exposures to European investment grade and high yield bonds and to European equities according to market conditions.
The portfolio managers can invest where they see the most attractive opportunities in both bonds and equities.
The fund’s risk profile is actively managed.
The team has more than 25 years of experience of managing mixed asset funds.
Invesco’s Fixed Income team has a 30-year track record of investing in corporate and higher yielding bonds. The fund invests in European investment grade corporate bonds, European high yield bonds, subordinated debt issued by financials and in European equities.
The equity team also enjoys a long track record with equity fund manager Oliver Collin having over 20 years of investment experience. Oliver is supported by the Henley-based Invesco European Equities team to pick the best dividend-oriented opportunities.
The fund is free from having to track a benchmark index and the fund managers tilt the asset allocation according to market conditions and where they believe the best value is to be found.
Bonds with strong balance sheets and predictable cashflows form the income core of our portfolio. The equity allocation aims to deliver additional income, diversification and enhanced returns. It can be adjusted depending on current market conditions.
The equity allocation is predominantly focused on Europe-based companies with the ability to pay strong and sustainable dividends. The exposure to equities can be adjusted depending on current market conditions.
The investment concerns the acquisition of units in an actively managed fund and not in a given underlying asset.
Middle East tensions unsettled markets in March, yet European ETFs attracted US$12bn, driven by diversification away from the US and cautious demand for cash and short-duration fixed income.
Get an analysis of important drivers of global fixed income markets, including macroeconomic trends, interest rates, currencies, and credit, in our monthly global strategy report.
As economies show resilience, selectivity and care remain critical for bond investors figuring out where to take duration risk and how to think about returns.
Thomas Moore and Alexandra Ivanova, who manage the portfolio’s asset allocation and fixed income investments, each have over 20 years’ experience in bond markets. Oliver Collin manages the equity allocation, and also has over 20 years’ investment experience. Their approach is flexible and market-driven. They focus on absolute risk and return without the constraint of an index.
Following the sharp increase in interest rates in 2022 and 2023, we now have some of the best opportunities for fixed income investing we’ve seen in the last decade, along with the income and capital growth offered by the European equity market. This is an exciting environment for the management of mixed asset strategies.
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 higher returns in the long term.
The level of income offered by European bonds is once again attractive, and fundamentals for European companies remain strong in our view.
The disparity between the price-to-earnings ratios in Europe and the US suggests that European companies may be undervalued and European equities therefore present an opportunity for investors seeking equity exposure away from the premium prices of the US market.
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 8 applies to funds promoting environmental and social objectives and which take more into account than just sustainability risks as required by article 6. However, article 8 funds don't have ESG objectives or core objectives – as required for becoming labeled an article 9 fund.
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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 higher returns in the long term.
The level of income offered by European bonds is once again attractive, and fundamentals for European companies remain strong in our view.
The disparity between the price-to-earnings ratios in Europe and the US suggests that European companies may be undervalued and European equities therefore present an opportunity for investors seeking equity exposure away from the premium prices of the US market
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 8 applies to funds promoting environmental and social objectives and which take more into account than just sustainability risks as required by article 6. However, article 8 funds don't have ESG objectives or core objectives – as required for becoming labeled an article 9 fund.
