Introducing the Invesco Global Total Return Bond Fund

Introducing the Invesco Global Total Return Bond Fund

This flexible bond strategy invests without sector, regional or asset class constraints, adapting its asset allocation to reflect changing market conditions.

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The opportunity for investors

Government and better-quality corporate bonds still offer a relatively attractive yield, despite having declined as interest rates have begun to be cut. With credit spreads, the additional yield over government bonds remaining low, we believe the backdrop remains supportive without needing to take on too much credit risk. Further interest rate cuts should act as a positive tailwind. The flexibility the strategy has will allow the manager to reshape the strategy as opportunities arise.

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Flexibility is our philosophy

We have more flexibility to change the strategy’s asset allocation than traditional fixed income strategies.

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Active duration management

Without duration restrictions, we can mitigate risk or take advantage of opportunities.

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Attractive risk-adjusted return potential

We align risk and reward through our adaptable and opportunistic bond market allocations.

Why this fund?

The strategy’s investment objective is to maximise total return, primarily through investment in a flexible allocation of debt securities and cash.

We are free from benchmark constraints, and can actively allocate to corporate bonds, government debt, high yield bonds and cash across fixed income markets globally.

The fund’s flexible strategy is characteristic of our philosophy as an investment team: we only invest when we believe the return potential is sufficient to compensate for the risk. We look to deliver strong performance across a range of market environments.

By taking a flexible approach to duration, we believe we can reduce the impact of rate hikes on strategy performance and volatility.

Meanwhile, when we think rates look attractive, we aim to take advantage of the returns on offer.

The managers can reduce duration risk by allocating up to 100% to cash and near cash. They can also have up to 20% exposure to foreign currency risk.

Our time-tested approach is based on fundamental analysis, with a strong emphasis on valuation.

Our 40+ team members have extensive industry experience and have been successfully managing bond strategy for 25+ years.

Launched in 2010, this strategy has navigated a wide range of market environments. For performance information and KIDs/KIIDs , please refer to the Invesco Global Total Return Bond Fund strategy page. 

  • Investment risks

    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.

    The strategy may invest in distressed securities which carry a significant risk of capital loss.

    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.

Meet the team

Julien Eberhardt and Asad Bhatti are responsible for managing the strategy, supported by the rest of Invesco’s Fixed Income Team. Together, Julien and Asad have a combined 40+ years of industry experience.

The mandate we have in this strategy really allows us to align risk with reward across a range of market environments.

Frequently asked questions

Diversification – Bonds have played an essential role in diversifying investor strategies and helping to mitigate strategy losses during periods of negative equity returns.

Income generation – bonds provide a fixed amount of income at regular intervals in the form of coupon payments.

Total return refers to interest, capital gains, dividends, and distributions realized over a given period of time. Investors more concerned with the total return will likely choose to focus on strategy growth as opposed to the income generating aspect of a security, such as dividends, interest or coupons. 

Duration measures the sensitivity of a bond to changes in interest rates. Time to maturity and a bond’s coupon rate are two factors that affect a bond’s duration. Generally, the higher a bond’s duration is, the more its price will increase when interest rates fall and vice-versa.

A fixed-income strategy’s duration is computed as the weighted average of individual bond durations held in the strategy – strategy duration can therefore be actively managed by strategy managers to reduce or increase strategy risk as they see fit.

  • Important information

    This marketing communication is exclusively for use by Professional Clients in Dubai. It is not intended for and should not be distributed to the public.

    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.

    Further information on our products is available using the contact details shown.
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