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Invesco Corporate Bond Class Y - Income (GBP)

Sell:205.80p Buy:205.80p Change: 0.96p (0.46%)
Prices as at 11 October 2019
Sell:205.80p
Buy:205.80p
Change: 0.96p (0.46%)
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
Prices as at 11 October 2019
Sell:205.80p
Buy:205.80p
Change: 0.96p (0.46%)
Prices as at 11 October 2019
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund does not feature on our Wealth 50 list of what we believe are the best funds in each sector. If a fund is not within our Wealth 50 this is not necessarily a recommendation to sell. However, if you are thinking of adding to your investments we believe Wealth 50 funds are superior alternatives. View funds on the Wealth 50 »

This fund's managed by Paul Causer and Michael Matthews, two experienced bond fund managers. They use a flexible approach. They're willing to invest the fund differently from other funds in the same sector and at times this means performance can look quite different. The managers are prepared to take more risk in search of returns when they feel the time is right.

We think the fund could do well over the long term. But we currently prefer other funds run by the bond team at Invesco. We also think there are other good corporate bonds funds available at a lower cost.

Our view on the sector

Funds in this sector invest mainly in 'investment grade bonds'. These are issued by companies that are more likely to be able to repay their debts to bondholders. As such, they tend to offer lower yields than bonds issued by companies that are less likely to be able to pay off their debts. Corporate bonds have generally performed well since the 2008 financial crisis. With interest rates on cash so low, they've appealed to income investors. This has pushed up bond prices, but means their yields have also fallen. Some suggest there is now less value in this area of the market. We think that with interest rates likely to stay lower for longer, a corporate bond fund could be a good addition to a diversified portfolio invested to generate income.

Performance Analysis

The managers take a different view to a lot of investors, and this is reflected in the way the fund's invested. It means the fund performs quite differently to others in the corporate bond sector at times.

The managers' long-term track record is good. It's been subdued compared with the average fund in the sector over the past few years though. The managers have had quite a cautious outlook for bond markets, so this has held back performance over a time when bond markets have generally performed well. We think it could be beneficial if bond markets go through a rough patch though. Past performance isn't a guide to future returns.

Investment Philosophy

The managers aim to provide investors an income, along with some growth, over the long term. When they're more cautious and think markets could be weak, they try to invest in areas of the bond market that could offer some shelter. When they have a more positive outlook they take on more risk with the aim to achieve higher returns.

Process and Portfolio Construction

This fund invests at least 80% in UK corporate bonds. The managers have some flexibility with the rest of the portfolio. If they have a more cautious outlook they might hold some cash, government bonds, or bonds that can be sold quickly when better opportunities arise, for example. They can also invest in some higher-risk high yield bonds when they think it'll boost returns. They also have the ability to invest in some overseas bonds and use derivatives, which can increase risk.

question mark Manager Track Record Based on HL Quantitative Research

  • Invesco Corporate Bond (UK) Acc
  • IA £ Corporate Bond
FROM: TO:


Fund Track Record

11/10/14 to 11/10/15 11/10/15 to 11/10/16 11/10/16 to 11/10/17 11/10/17 to 11/10/18 11/10/18 to 11/10/19
Annual return 1.56% 7.26% 3.58% 0.00% 6.55%

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.

Fund Management Group Comment

Invesco is one of the largest investment managers in the UK and they believe there are no short cuts to long-term investment success. They offer a large range of funds across a number of sectors and each follows a clear, disciplined investment process. The company has a particularly strong reputation for their UK equity and fixed interest funds.

Information about the fund

Fund manager biography

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

Michael began his investment career in 1995, joining the co-heads of Invesco's Fixed Interest team, Paul Read and Paul Causer, upon the team's foundation. He initially specialised in the team's money and foreign exchange market activities before predominantly focusing on government and investment grade credit markets. Michael has passed the associate examinations of the Association for Investment Management and Research (AIMR).

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.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account