Target a balance of income and capital growth over the long term with this global mixed asset strategy.
Bonds are now offering income opportunities not seen since the global financial crisis. But market volatility hasn’t gone away – which means flexibility is as important as ever. This strategy has the ability to flex its asset allocation across regions and between asset classes.
After years of low and falling yields, today’s higher interest rates environment means that bond yields are more attractive again. And fixed income is offering some of the best opportunities since the global financial crisis.
But market volatility hasn’t gone away, which means flexibility is as important as ever.
Following years of low interest rates and falling bond yields, inflation is building. This might mean higher interest rates and potential volatility in markets.
Adaptability is required to navigate this investment backdrop whilst finding opportunities to generate a sustainable income.
So whether it’s school fees, buying property, or funding a comfortable retirement, we believe our flexible mixed asset strategies can help achieve your objectives.
Mixed asset strategies combine highly active fixed income and equity allocations, with the aim of producing optimum income levels.
Bonds seek to deliver a steady income stream whilst offsetting equity volatility. Meanwhile, equities can give exposure to the typically higher returns produced by stock markets.
Asset allocation can change depending on market conditions and is critical to the success of the strategies. Without the constraints of benchmarks, we can flex to become more defensive or offensive.
Over 20 years’ experience in mixed asset investing gives us confidence operating across the fixed income and equity spectrum. That means we can decisively make the right calls and adjust the weightings.
When we build our portfolios, we aim to find opportunities that provide a reward for taking calculated risks.
This means hunting for examples of mispricing caused by market inefficiencies. And our research helps unearth bonds with strong balance sheets and predictable potential cashflows.
We don’t have biases and instead operate an unconstrained approach. Not having credit, sector or geographical limitations allows us to go further in the search for yield.
The equity allocation is predominantly focused on companies with the ability to pay strong and sustainable dividends. We target companies with visible revenues and profits that create shareholder value.
This broader remit, including scope to use derivatives as a means of finding additional income, is designed to help deliver strong returns relative to competitors.
By seeking out these fixed income and equity investments, we aim to provide you with the opportunity to benefit from the best of both worlds.
So, as markets enter a new phase of uncertainty, it might be time to take a fresh look at our mixed asset income solutions. Our focus on selecting the best income opportunities could play a key role in achieving your desired outcome.
Explore our flexible strategies now.
We believe markets are mostly efficient but often present mispricing opportunities. So, we target consistent, long-term outperformance through an emphasis on valuation.
The strategy is unconstrained, which means we can select whichever bonds and equities we want, without following an index.
We allocate between 35% and 65% to debt securities from across the credit spectrum with the rest of the portfolio in global equities. The equity component seeks to deliver shareholder value via sustainable and growing dividends or purely capital growth, and the allocation can be adjusted depending on market conditions.
Put simply, we aim to provide you with income and growth over the medium to long term by taking advantage of both bonds and equities.
We aim to generate income and growth by investing in a diversified portfolio of high yield and investment grade bonds. At the same time, we seek to grow your money through exposure to stock markets.
Alexandra Ivanova and Stuart Edwards, who manage the portfolio’s asset allocation and fixed income investments, each have over 20 years’ experience in bond markets. Stephen Anness manages the equity allocation with 20 years’ experience in this area.
Their approach is flexible and market-driven. They focus on absolute risk and return without the constraint of an index.
For complete information on risks, refer to the legal documents. 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 strategy. The strategy uses derivatives (complex instruments) for investment purposes, which may result in the strategy being significantly leveraged and may result in large fluctuations in the value of the strategy. Investments in debt instruments which are of lower credit quality may result in large fluctuations in the value of the strategy. The strategy may invest in distressed securities which carry a significant risk of capital loss. The strategy may invest extensively in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events. The strategy may invest in a dynamic way across assets/asset classes, which may result in periodic changes in the risk profile, underperformance and/or higher transaction costs.
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.
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.
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.
The team has more than 25 years of experience managing mixed asset strategy. Today, the strategy’s AUM totals > €1.3bn, and is invested across a 35-65% allocation to both fixed interest and equities.
Let us know using this form and one of our specialist team will quickly get back to you.
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.
Diversification is the main benefit of global investing. A diversified portfolio acts as a source of stability during market volatility. Moreover, the investment universe is not limited from a geographical perspective and the fund managers can invest where they see the best opportunities globally.
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.
Data as at 30.11.2023, 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.
EMEA3265747/2023
