Fixed income
Invesco Multi-Sector Credit Strategies
We believe our multi-sector credit strategy provides the dynamic approach necessary to generate returns in the current market landscape. We build a diversified portfolio that can take advantage of market dislocations to aim for high yield-like returns at comparatively lower risk levels.
At a glance
The Invesco Multi Sector Credit strategy applies a discretionary approach across core credit asset classes to pursue attractive strategic beta, tactical beta, and security selection alphas opportunities that can potentially enhance overall income and total returns.
Seamless multi-sector approach
We have specialist portfolio managers in each of the individual credit asset classes and seamlessly combine these collective insights into the strategy.
Active risk management
Our investment process integrates active management our risk positioning with the intention of providing downside protection.
Opportunistic
We can make quick, tactical, cost-efficient adjustments as market conditions change to shift the portfolio’s risk profile across asset class, sector, global duration and individual security holdings.
Objective
The Invesco Multi Sector Credit strategy looks to achieve a favourable total return over a full market cycle. We construct the strategy with the aim of generating a level of return approaching that of the high yield bond market. At the same time, we aim for volatility and a correlation to equities that is lower than that of high yield bonds.
Investment process
Our strategy applies a disciplined, research-intensive process that combines top-down and bottom-up analysis. With changing market conditions, this allows the investment team to actively implement a carefully constructed strategic allocation. This is diversified across four global credit sectors:
- Global investment grade
- Emerging market debt
- Bank loans
- High yield
This strategic asset allocation forms the strategy‘s foundation, assigning equal amounts of risk to each sector (risk parity).
The investment team also employs well-defined tactical allocation ranges in order to target additional risk-adjusted performance. This allows the team to position the portfolio opportunistically as markets evolve.
We are also able to seek additional returns through fundamentally based security selection. These individual holdings within each sector focus on the team’s highest conviction ideas.
Why Invesco
The Invesco Fixed Income team has been actively investing in fixed income markets since 1971 and has dedicated teams working in Atlanta, Chicago, Hong Kong, London, Louisville, New York and Tokyo. The team benefits from 223 fixed income investment professionals in 14 locations worldwide.
We leverage our robust single sector capabilities, global credit and macro research platforms, and interconnectivity to provide multi-sector solutions to clients worldwide. Through global standards across credit and risk, Invesco's multi-sector team develops an integrated strategy based on market direction, risk positioning and asset allocation.
Our global presence allows us to look for pricing advantages between regions for similar or identical credit risk, advantages which we aim to pass on to our clients through enhanced performance.
Investment team
Our team believes that a dynamic, multi-sector approach to credit investing is best adapted to capturing potential value and opportunity, especially in today’s complex market landscape.
The multi-sector team has three fund managers supported by an experienced team of four sector portfolio managers (High Yield, Bank Loans, Emerging Markets, Global IG) and Invesco Fixed Income’s extensive team of global research analysts.
Meet the team
Insights
Fixed Income Monthly fixed income ETF update
November was a broadly positive month for bond markets as yields rallied into month end. Read our latest thoughts on how fixed income markets performed during the month and what we think you should be looking out for in the near term.
December 9, 2024
Investment Outlook Fixed Income: The argument for bonds is the strongest it has been in years
We believe the case for investing in bonds is the strongest it has been since the GFC. Invesco’s experts from across Fixed Income teams and asset classes share their views on the outlook and opportunities.
November 27, 2024
Fixed Income Global Fixed Income Strategy Monthly Report
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.
November 5, 2024
Insurance Why Bank Loans for insurance companies?
Discover why senior secured loans offer insurers high income, low risk, and strong fundamentals. Improving returns and reducing capital charges.
October 23, 2024
Fixed Income The future of fixed income investing; takeaways from our webinar
As we enter the final quarter of the year, our experts look back at the ‘year of the bond market’ and share their thoughts on the outlook for Fixed Income assets going forward.
October 16, 2024
Alternatives Yields remain attractive and may maintain positive relative value
Significant focus on the uncertainty of the US macroeconomic backdrop and its potential implications on the market remain top of mind for investment opportunities. 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 third quarter of 2024 wraps up.
August 26, 2024
ESG Impact investing: climate adaptation and transition in a changing world
If we are to live more sustainably by 2030, the Climate Policy Initiative estimates that US $4.3 trillion will be needed annually. Climate adaptation and transition projects are helping, but more finance is needed. Find out more.
August 1, 2024
Fixed Income Emerging market investment grade debt for insurance companies
At Invesco, we have extensive experience investing in EM debt and working with institutional clients to provide tailored solutions that can meet their exact requirements.
Fixed Income Euro Corporate Bonds: how we’re positioning portfolios in the current market
Julien Eberhardt, Fund Manager, in the Invesco Fixed Income Europe team shares his thoughts on the key headwinds that have impacted bond market performance in 2024. Find out why he is more positive on rates in Europe than the US and in cautious on credit risk and how this is influencing his management of the Invesco Euro Corporate Bond Fund in our Q&A.
June 10, 2024
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Investment risks
- 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. As a large portion of the strategy is invested in less developed countries, you should be prepared to accept significantly large fluctuations in value. The strategy will invest in derivatives (complex instruments) which will result in leverage and may result in large fluctuations in value. Debt instruments are exposed to credit risk which is the ability of the borrower to repay the interest and capital on the redemption date. Investments in debt instruments which are of lower credit quality may result in large fluctuations in value. Changes in interest rates will result in fluctuations in value. The strategy may invest in distressed securities which carry a significant risk of capital loss. The strategy may hold a large amount of Asset Backed Securities (ABS) (complex instruments) as well as lower quality debt securities which may impact liquidity under certain circumstances. Performance may be adversely affected by variations in the exchange rates between the base currency of a portfolio and the currencies in which the investments are made.
Important Information
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Data as at January 2020, unless otherwise stated. By accepting this document, you consent to communicate with us in English, unless you inform us otherwise. Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.
