Invesco Corporate Bond Fund

Invesco Corporate Bond Fund (UK)

We look for good quality companies and invest in their investment grade debt. Without benchmark or duration constraints, we’re free to adapt to changing market conditions.

Why this fund?

A long history of corporate bond investing

This fund’s track record is over 25 years long – one of the longest in the industry. Over this time, our fund managers have shown their expertise in managing credit and interest rate risk.

Benchmark-agnostic

Can adapt flexibly to changing market conditions.

Active management

The portfolio managers actively manage credit and interest rate risk.

Team experience

Managed by an experienced, stable and well-resourced team.

Why this fund?

We carry out thorough credit analysis, combining internal and external research, to find good quality companies with attractively valued bonds. The aim is to maximise returns through acceptable and well-understood credit risk exposure.

We consider the risk/return profile of any bond relative to cash, core government bonds and the rest of the fixed income universe. We only take risks that we feel will be adequately rewarded.

Our approach is flexible, pragmatic and market driven. We focus on absolute risk and return and are not constrained by an index. We actively manage credit and duration risk, exploiting opportunities on a short-term tactical and long-term strategic basis.

Our time-tested approach is based on fundamental analysis, with a strong emphasis on valuation. Our portfolio managers are supported by a well-resourced team of analysts. Access the Invesco Corporate Bond Fund (UK) product page to view KIIDs and factsheets.
See fund details

Fund managers

Michael Matthews and Tom Hemmant are responsible for managing the portfolio, supported by the rest of Invesco’s Fixed Income Team. Together, the two fund managers have 50+ years of industry experience.

  • Michael%20Matthews

    “With a flexible mandate and strong credit management expertise, we believe we’re well positioned to target good, long-term risk-adjusted returns.”

    Michael Matthews, Co-Fund Manager

Frequently asked questions

Diversification – Bonds have played an essential role in diversifying investor portfolios and helping to mitigate portfolio 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.

Corporate bond is debt issued by a company in order for it to raise capital. An investor who buys a corporate bond is effectively lending money to the company in return for a series of interest payments, but these bonds may also actively trade on the secondary market.

A government bond represents debt issued by a government and sold to investors to support spending. Government bonds are considered low-risk investments since the government backs them. Because of their relatively low risk, government bonds typically pay low interest rates.

High-yield bonds tend to have lower credit ratings of below BBB- from Standard & Poor’s and Fitch, or below Baa3 from Moody’s. High-yield bonds are more likely to default and have higher price volatility. They therefore pay higher interest rates than investment-grade bonds.

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

  • The value of investments and any income will fluctuate (this may partly be the result of exchange-rate fluctuations) and investors may not get back the full amount invested. The Fund is theme-based or invests in a specific sector or a small number of sectors and/or industries. Investors should be prepared to accept a higher degree of risk than for a Fund that is more widely diversified across different sectors/industries. The debt securities that the Fund invests in may not always make interest and other payments and nor is the solvency of the issuers guaranteed. Market conditions, such as a decrease in market liquidity, may mean that the Fund may not be able to buy or sell debt securities at their true value.  The Fund has the ability to make use of financial derivatives (complex instruments) which may result in the Fund being leveraged and can result in large fluctuations in the value of the Fund. Leverage on certain types of transactions including derivatives may impair the Fund’s liquidity, cause it to liquidate positions at unfavourable times or otherwise cause the Fund not to achieve its intended objective. Leverage occurs when the economic exposure created by the use of derivatives is greater than the amount invested resulting in the Fund being exposed to a greater loss than the initial investment. The Fund may invest in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events. The Fund’s performance may be adversely affected by variations in interest rates.

  • Important Information

    This marketing communication is for Professional Clients only and is not for consumer use. Data is as at 30/04/2025 and sourced from Invesco 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. For the most up to date information on our funds, please refer to the relevant fund and share class-specific Key Investor Information Documents, the Supplementary Information Document, the financial reports and the Prospectus, which are available using the contact details shown.

    EMEA4451225/2025
success failure

How can we help?

Let us know using this form and one of our specialist team will quickly get back to you.

How can we help?

Your contact information.

When you interact with us, we may collect information about you which constitutes personal data under applicable laws and regulations. Our privacy notice explains how we use and protect your personal data.

How can we help?

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.