

A truly global approach to corporate bond investing
Lyndon Man. Co-Head of Global Investment Grade Credit
The Invesco Global Investment Grade Corporate Bond Strategy offers a globally diversified approach to investment grade corporate bond investing. Invesco Fixed Income’s truly global approach increases the opportunity set available versus a regional focused strategy, with the goal of delivering better risk-adjusted returns more consistently and to achieve income and long-term capital growth.
Our approach builds on traditional corporate bond investing through the implementation of a theme-based investment philosophy, the use of macro overlays and ability to reduce idiosyncratic risk exposure in our strategy. Whilst within the strategy, we are able to offer full environmental, social and governance integration and if desired a rigorous ESG framework to guide active investments in corporate bonds issued by companies worldwide.
The monthly update on the Invesco Global Investment Grade Corporate Bond strategy:
Our Approach
Traditional active corporate bond managers typically rely on a combination of security selection and market timing to outperform the market. There are three additional key components embedded in the philosophy of Invesco Fixed Income’s (IFI) approach to global corporate bond management that when combined, we believe can result in better risk adjusted returns when compared to more traditional approaches.
These three additional key components are:
- Thematic Approach - The team implements strategic medium- to long-term investment themes, these are populated using security selection.
- Relative Value - The team constructs these investment themes using a relative value approach versus the benchmark across key thematic risk factors (regions, sectors, currency of the bonds, credit curve term structure and capital structure).
- Macro Overlays - the team use liquid derivatives to try and reduce downside capture during periods of corporate bond weakness. These macro overlays are modulated to varying degrees depending on the risks identified. The goal is to more efficiently manage the portfolio risk, thus reducing transaction costs.