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.
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.
We have specialist portfolio managers in each of the individual credit asset classes and seamlessly combine these collective insights into the strategy.
Our investment process integrates active management our risk positioning with the intention of providing downside protection.
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.
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.
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:
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.
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.
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.
Our fund managers have an average working experience of 23 years, while our analysts have an average of 16 years’ industry experience.
Invesco Global Investment Grade Corporate Bond Fund Insights
The final quarter of 2019 saw a notable improvement in market sentiment, but what strategies and themes to follow in 2020?
Taking a cashflow-conscious approach
Over recent years, the improvement in funding levels for defined benefit (DB) pension plans has amplified the importance of implementing de-risking strategies to hedge liabilities and ultimately bringing plans closer to their goal of securing benefits.
In our long experience as global investors, we understand investing to be the art and science of making decisions about the trade-offs between the opportunity for higher returns and the risk of pursuing those returns. Much of that information is not readily available to investors and sometimes those trade-offs are not always evident. To see them, we need the right information.