A globally diversified corporate bond strategy, delivering income and capital growth opportunities.
See all strategy detailsThe strategy’s truly global approach increases the opportunity set available versus a regionally-focused strategy. Based on research, the team seeks to identify structural and tactical themes which drive credit markets to achieve compelling risk-adjusted returns. As well as benefitting from no geographical constraints, we are free to allocate up to 20% of the strategy to high yield bonds (no lower than BB at purchase), if the macroeconomic and issuer-specific circumstances look attractive. We typically use this allowance to invest down the capital structure in high yield bonds that are issued by investment grade companies.
The strategy offers a globally diversified approach to investment grade corporate bond investing.
Themes drive over- and underweights across regions, sectors and capital structure versus the benchmark.
Invesco Fixed Income is comprised of 180+ investment professionals averaging 18 years in the industry and 12 years with Invesco.
We focus on investment grade corporate bonds, issued by companies that are highly solvent with strong balance sheets. The default risk on these sorts of securities is typically low, with defaults very rare for investment grade issuers.
Within our strategies, we invest across a broad range of sectors and geographies. This helps ensure good diversification.
Access the Invesco Global Investment Grade Corporate Bond Fund strategy page to view KIDs/KIIDs and factsheets.
The investment concerns the acquisition of units in a strategy and not the underlying asset. The strategy is actively managed. It is not managed in reference to a benchmark.
Unlike traditional corporate bond managers, we don’t just focus on market timing and security selection. Instead, we go further. We identify the big themes driving economies and use this analysis to help drive our issuer selection. These themes could include things like:
We also implement “macro overlays” to manage the overall risk of the strategy through the cycle. This involves using derivatives, which help reduce transaction costs compared to trading in and out of corporate bonds.
Any investment decision should take into account all the characteristics of the strategy as described in the legal documents. For sustainability related aspects, please refer to www.invescomanagementcompany.lu.
Our approach to ESG is rooted in a belief that evaluating ESG criteria leads to better long-term risk-adjusted returns. Our credit analysts are tasked with understanding the ESG drivers for the companies they cover and conducting ESG-based analysis along with their fundamental financial analysis.
We also work closely with Invesco’s global ESG team, which coordinates engagement activity across the firm and provides additional support, data and analysis.
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 contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events.
As this strategy is invested in a particular sector, you should be prepared to accept greater fluctuations of the value than for a strategy with a broader investment mandate.
Investment in certain securities listed in China can involve significant regulatory constraints that may affect liquidity and/or investment performance.
April's fixed income markets saw mixed performance and volatility. 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.
Each month, our experts share their views on the emerging market (EM) local debt asset class. Read their outlook and discover which markets they believe are presenting the most attractive opportunities.
Lyndon Man and Luke Greenwood have led the management of the strategy since 2013, with Michael Booth and Matthew Henly joining in 2016 and 2021 respectively. Lyndon and Luke have a combined 50+ years of industry experience and have navigated a broad range of economic cycles. They draw on the resources of Invesco’s global fixed income platform. The platform is made up of over 180 investment professionals, averaging 18 years of industry experience and 12 years with Invesco.
I believe our thematic approach to investing will be key to delivering attractive risk-adjusted returns going forward.
The term “investment grade credit” is used to describe corporate bonds that have been issued by high quality companies. The three main rating agencies use slightly different definitions. Moody’s defines investment grade securities as having a rating of Baa3 or higher. Meanwhile, Standard & Poor’s and Fitch define it as BBB- or higher.
Investment grade corporate bonds can play an important role as income generators in investor strategies. This made them popular with investors in the years following the global financial crisis when the world lived through a sustained period of low yields, or even negative yields on government debt.
They can also be good diversifiers. They represent a large strategy of the global investment universe, which means they allow investors to gain exposure to a broad range of economic sectors and geographies. Furthermore, they typically exhibit significantly lower price volatility than equities.
When the economy takes a downturn, the risk that companies will be unable to meet their financial obligations increases. However, it is worth noting that defaults have historically been very low for IG credit. Even between 2008 and 2009, the default rate peaked at only 0.3-0.4% of the universe. The threat of credit downgrades is more common, but can be mitigated with thorough credit analysis.
When the economy takes a downturn, high quality fixed income assets (government bonds and investment grade credit) tend to outperform more volatile/riskier parts of the market. This is partly because, when markets throw up challenges, many investors prefer relatively “safer” assets, which are able to better navigate periods of slowing growth. IG credit investors can benefit from these moves.
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Data as at 28.02.2025, 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.
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