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Invesco Monthly Income Plus Class Y - Income (GBP)

Sell:191.56p Buy:191.56p Change: 0.16p (0.08%)
Prices as at 11 October 2019
Sell:191.56p
Buy:191.56p
Change: 0.16p (0.08%)
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:191.56p
Buy:191.56p
Change: 0.16p (0.08%)
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 »

The fund invests in a mixture of shares and corporate bonds. The bond element makes up the core of the portfolio and is managed by Paul Read and Paul Causer, who also dictate the fund's overall asset allocation. They have an outstanding track record in managing a range of fixed interest portfolios. Up to 20% of the fund can be invested in high yielding UK shares. These are chosen by Ciaran Mallon who looks for companies with strong fundamentals, dividend growth and sensible management whose interests are aligned with shareholders. The fund's flexible approach allows the managers to actively exploit opportunities in varying market conditions across bonds and equities.

View our full research note on the Invesco Perpetual Monthly Income Plus Fund »

Our view on the sector

Funds in this sector do what they say on the tin - they aim to pay a high income to investors. There's more than one way to achieve this though. Each fund uses a different approach and invests in different areas. Some focus on bonds. They tend to pay a fixed rate of income, but the amount varies from bond to bond. Government bonds are perceived to be lower risk and pay a lower income to reflect this. Corporate bonds offer higher yields because of the extra risk taken when lending to companies. Bonds can be less volatile than company shares, but offer less potential to grow your income and initial investment. Other funds focus on dividend-paying shares and offer more potential for long-term growth. There are also funds with the flexibility to invest in all kinds of investments. In addition to shares and bonds, they might also invest in currencies, property or commodities.

Performance Analysis

Paul Read and Paul Causer have an excellent long-term track record. They have managed this fund since launch and over that period have significantly outperformed the peer group. The fund has tended to be more volatile than its peers owing to its equity component and a historic bias to higher risk, high yield bonds. Since the 2008 financial crisis the fund has had considerable exposure to bonds in the financial sector. This initially hurt performance although the fund bounced back strongly during the recovery. More recently performance has been broadly in line with the sector, but we continue to believe the team will perform well over the long term, although there are no guarantees.

Investment Philosophy

The fund aims to deliver a high level of income with the potential for some capital growth. Its flexible approach is stock specific and research driven, and allows the managers to exploit opportunities across equity and bond markets.

Process and Portfolio Construction

The fund will tend to invest around 70-80% in bonds, including higher risk, high yield bonds, and up to 20% in shares. The bond component has the flexibility to exploit opportunities across the entire corporate and government bond market depending on where the managers see the most value. Paul Read and Paul Causer aim to predict where we are in the economic cycle and tilt the portfolio accordingly. They are not afraid to build high conviction positions once they see evidence that their initial expectations are being borne out. The equity component of the fund is managed by Ciaran Mallon, who focuses on large, cash-generative businesses with dominant market positions.

question mark Manager Track Record Based on HL Quantitative Research

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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 3.00% 4.58% 8.70% -1.58% 5.78%

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: Ciaran Mallon
Manager start date: 15 October 2013
Manager located in: Henley

Ciaran joined the company in January 2005 and is part of the UK Equities team managing UK Equity portfolios. Ciaran began his investment career in 1994 joining HSBC where he worked as an investment analyst before moving to United Friendly Asset Management (UFAM) in 1999 as a fund manager. He holds a BA (Hons) Chemistry from Oxford University and has also gained the CFA and Securities Institute Diploma.

manager photo
Manager Name: Paul Read
Manager start date: 6 February 1999
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: 6 February 1999
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