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Invesco Perpetual Corporate Bond Inclusive - Income (GBP)

Sell: 89.86pBuy: 89.86p0.01p (0.01%)

Prices as at 17 April 2014

* Please note that there can be occasions when the Selling price shown may be temporarily higher than the Buying price. This can sometimes happen when the stock market is closed but it can also happen at other times for a variety of reasons. However, when the stock market is open and you place a trade, the selling price available to you will never be higher than the buying price. Live prices will be available when you place a deal with us during market hours. Please check these and contact us if you are unable to deal online.

Our view on this Fund

This fund features on our Wealth 150 list of what we believe are the best funds in each sector.

This investment grade corporate bond fund is managed by Invesco Perpetual's highly experienced fixed interest team of Paul Causer, Paul Read and, since March 2013, Michael Matthews. The managers will build high conviction positions and the portfolio may look significantly different from the peer group. The fund may appeal to an investor searching for a higher risk option in the investment grade corporate bond arena.

Our view on the sector

Fixed-interest investments have yielded strong returns for investors over the past few years. In a low interest rate environment the yields on offer have proved attractive. Funds in this sector tend to invest mainly in 'investment grade bonds' which are issued by companies judged to be most credit worthy. As such, they tend to offer lower yields than bonds issued by less credit worthy companies. Some commentators have suggested that as bond yields have fallen (and prices risen) in recent years there is less value in this area of the market. We believe that with interest rates still likely to remain lower for longer there are merits to holding well-chosen corporate bond funds for income seeking investors.

Performance Analysis

The fund has performed well over time, comfortably outperforming the benchmark, the iBoxx £ Corporate index (not shown), and the peer group. Volatility has, however, tended to be higher than the average fund in the sector. Our analysis suggests the managers' style positioning, including credit rating and sector allocation, as well as individual bond selection, has positively contributed to performance.

The fund did not fall in value as far as some of its peers during the 2008 credit crisis, before outperforming the rising market in 2009. However performance was hurt by a significant exposure to financial bonds (principally bank debt) in 2011, before rebounding strongly in 2012.

Investment Philosophy

The managers feel the key to success is knowing what widely-available information is the most relevant at any point in time. They seek to understand the prevailing economic environment in terms of, amongst other factors, where we are in the business cycle. Their views are used to tilt the portfolio in the right direction in terms of duration (a bond's level of interest rate sensitivity) and from a credit perspective.

Process and Portfolio Construction

The managers are supported by in-house credit analysts and economists while also interacting with equity managers. The flow of information is used to build a picture of what they believe the market is expecting and in which direction it is moving. The managers' style is to increase the fund's biases when evidence supports these positions.

This is a very diversified portfolio and may hold up to 20% in higher risk, high yield bonds. Within the higher quality, investment grade corporate bond element, the bias is typically towards BBB-rated issues which sit at the lower end of the investment grade spectrum.

Manager Track Record Based on HL Quantitative Research question mark

This information is currently unavailable.

Fund Track Record

17/04/09 to 17/04/10 17/04/10 to 17/04/11 17/04/11 to 17/04/12 17/04/12 to 17/04/13 17/04/13 to 17/04/14
Annual return 30.57% 5.52% 0.3% 15.71% 3.95%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Managers Track Record

The graph highlights the Fund Manager's career track record incorporating previous funds they have been responsible for. Each fund is shown as a different colour. In addition we have selected the most appropriate benchmark for comparison. This may incorporate different indices, which again are highlighted in different colour. Performance is shown on a bid to bid basis with net income reinvested. Source: Hargreaves Lansdown, Lipper for Investment Management, Datastream.

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Fund Management Group Comment

Invesco Perpetual was formed by the merger of Invesco and Perpetual in December 2000 following the acquisition of the two companies by Amvescap (now Invesco Ltd). It is one of the largest investment managers in the UK and offers a diverse range of funds across a number of sectors. The group trades as Invesco Ltd outside the UK and is listed on the New York Stock Exchange.

Invesco Perpetual believes there are no short cuts to long-term investment success and has gained a particularly strong reputation for managing UK equities and fixed interest.

Information about the fund

Fund manager biography

manager photo
Manager Name: Michael Matthews
Manager start date: 28 March 2013 Manager located in: Henley

Michael joined Invesco Perpetual (formerly Perpetual) in February 1994 from TSB and transferred to the Fixed Interest team in September 1995 becoming lead fund manager of the Invesco Sterling Bond Fund in June 2008.

manager photo
Manager Name: Paul Read
Manager start date: 24 July 1995 Manager located in: Henley

Paul joined the company in 1995 and co-leads the Fixed Interest team with Paul Causer. Paul began his career with UBS (Securities) Ltd in 1984, and then moved to Merrill Lynch International in 1986. Paul initially worked on the bond sales desk, covering institutional investment managers at Merrill, before moving on to debt trading and working as a director of fixed interest trading in Tokyo from 1991 and in Paris from 1993. He holds a BA, Economics and History from the University of Toronto and also has an MBA from INSEAD.

manager photo
Manager Name: Paul Causer
Manager start date: 24 July 1995 Manager located in: Henley

Paul joined the company in 1994 and co-leads the Fixed Interest team with Paul Read. Paul began his career in 1983 in research and credit analysis with Asahi Bank, the large Japanese commercial bank. He then moved to the bank's treasury department and traded securities and derivative instruments until 1990 when he was given responsibility for managing the bank's multi-currency investment portfolio. He holds a BSc, Economics from the London School of Economics.

Benchmark data provided subject to this disclaimer.

You can buy or sell holdings in this fund through an ISA, SIPP or Fund & Share Account

Wealth 150 fund

The Wealth 150 is a list of what we believe to be the best funds in each sector. For a fund to be selected for the Wealth 150 it must pass a rigorous selection process, and we continually monitor the list to ensure it only contains the best funds.

Wealth 150+ fund

The Wealth 150 is a list of what we believe to be the best funds in each sector. For a fund to be selected for the Wealth 150 it must pass a rigorous selection process, and we continually monitor the list to ensure it only contains the best funds.

As investment returns depend on two factors - performance and charges - we have identified from the Wealth 150, the funds we believe offer the very best combination of outstanding performance potential and the best prices. These are the Wealth150+ funds. In many cases these super-low charges are only available through the Vantage Service - a unique benefit to Hargreaves Lansdown clients.

Core Tracker fund

The Core Trackers list represents what we believe are the very best trackers in each of the main sectors. We analysed each fund's management, process and performance to find the best combination of quality and cost. We want to ensure that the fund has not only tracked its index closely in the past, but that it has the best potential to track well in the future. In many cases these super-low charges are only available through the Vantage Service - a unique benefit to Hargreaves Lansdown clients.

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