Introducing the Invesco Tactical Bond Fund (UK)

Invesco Tactical Bond Fund (UK)

An unconstrained bond portfolio with the ability to invest in opportunities along the entire credit spectrum.

Why this fund?

Navigate uncertainty with a flexible approach

The Invesco Tactical Bond Fund (UK) is an actively managed portfolio. The fund is benchmark-agnostic, i.e. unconstrained, and the portfolio managers can flexibly allocate to corporate and government debt securities (including investment grade, non-investment grade and unrated) and cash. This means that at times when we think that risk is not well rewarded the fund can hold large allocations to cash or cash equivalents. Equally, when we do think there is opportunity, we can quickly dial up risk. This flexibility is central to the fund’s approach.

Unconstrained approach

Can invest flexibly across the entire fixed income universe.

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?

The portfolio has a cash-like index as its performance reference benchmark. This decision reflects the defensive nature of the fund during periods where we don’t see opportunity. We are prepared to de-risk and pass up short-term income to maintain the right balance and deliver on the fund’s mandate.

We can change the portfolio’s duration as market conditions evolve. We can and have reduced duration completely in market environments where this risk is not being well rewarded. At other times we have been prepared to hold higher levels of duration than the market.

Stuart Edwards and Julien Eberhardt, who manage the portfolio, have a combined 47 years of experience in bond markets. Access the Invesco Tactical Bond Fund (UK) product page to view KIIDs and factsheets.
See fund details

Fund managers

Stuart Edwards and Julien Eberhardt are responsible for managing the portfolio. They are supported by an experienced team of credit analysts, FX and rates specialists, and an economist.

  • Stuart%20Edwards

    “The portfolio’s flexibility allows us to adapt quickly to market conditions. It means we can build a portfolio of our best ideas with the aim of generating strong risk-adjusted returns.”

    Stuart Edwards, Co-Fund Manager

Frequently asked questions

Strategic bond funds are products with flexible mandates, investing across a broad range of fixed income asset classes. The investment teams that manage these products can dynamically evolve their asset allocation as markets change.

To carry out the fund’s mandate, it can be necessary to reduce the total risk of the portfolio substantially when markets do not offer enough value. This can mean foregoing some of the yield that the market is offering in order to try and defend the downside. Clients need to understand this feature of the fund and we have tried to make it explicit by choosing a cash-like index as the performance reference benchmark.

Over the history of the fund, a period when interest rates and credit spreads have reached historic lows at several points, we have reduced total fund duration to zero and below. But we have also been prepared to ‘re-risk’ the fund quickly. This was evidenced in the early life of the fund, when we were coming out of the financial crisis, and in the second quarter of 2020.

The fund is actively managed and follows an unconstrained approach. UK 3 Month Treasury Bills are used as a comparator benchmark for performance monitoring purposes. This benchmark is shown for performance comparison purposes only. The Fund does not track the benchmark.

We have chosen a cash-like index as the reference benchmark to reflect the fact that the fund can reduce risk substantially in periods where the market doesn’t look attractive.

  • 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 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. These risks increase where the Fund invests in high yield, or lower credit quality, bonds. The Fund has the ability to make significant 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. As the Fund has wide discretion to dynamically allocate across the debt securities spectrum and between that asset class and cash, the risks relevant to the Fund will fluctuate over time, which may result in periodic changes to the Fund’s risk profile. 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. The Fund has the ability to invest more than 35% of the value in Government and public securities issued or guaranteed by a single body.

  • 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.

    EMEA4451154/2025
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.