A flexible approach to fixed income investing
For over 25 years, Invesco has been using its active fund management skills to invest flexibly in a range of different types of bonds including government, corporate and high yield bonds to create what’s categorised as a strategic bond fund.
For investors looking to achieve a combination of income and capital growth over a medium to long-term horizon (typically 3-5 years), strategic bond funds could be worth a closer look.
Strategic bond funds use active fund management skills to invest across the bond universe to achieve their investment objectives. Rather than being limited to a single type of bond – such as government bonds (debt issued by governments) or corporate bonds (debt issued by companies)– strategic bond funds can typically invest in a wide array of bonds across global bond markets without any benchmark constraints. This gives fund managers the flexibility to invest wherever they see the best value at different points in time, depending on macro-economic conditions.
Strategic bond funds allow fund managers the freedom to invest wherever they see the best opportunities across the global bond universe. An important part of this is building portfolios that can navigate volatile periods successfully. This is active management in its truest sense, as fund managers aim to reduce the impact of bond markets rising and falling within their portfolios, avoiding areas of the market which look unattractive and finding opportunities in times of distress.
Strategic bond funds can help provide income and capital growth to investors.
They can also provide access to different areas of the bond market, across different countries and industries, thereby helping investors achieve portfolio diversification.
Through expert analysis and careful selection of the different type of bonds, experienced fund managers can add value to the portfolio over the long term.
Learn more about the strategic bond funds we manage.
Despite the volatility in bond markets throughout January, yields generally ended the month slightly lower, resulting in positive returns for most fixed income asset classes. Read our latest thoughts on how fixed income markets performed during the month and what we think you should be looking out for in the near term.
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.
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.
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.
Debt instruments are exposed to credit risk which is the ability of the borrower to repay the interest and capital on the redemption date.
All information as at 31 December 2023 and sourced by Invesco unless otherwise stated.
Views and opinions are based on current market conditions and are subject to change.
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.
For the most up to date information on our funds, please refer to the relevant fund and share class-specific Key Information Documents, the Supplementary Information Document, the financial reports and the Prospectus, which are available using the contact details shown. For details of fund specific risks, please refer to the relevant Key Information Documents.
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