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Invesco Tactical Bond Class Z - Accumulation (GBP)

Sell:288.86p Buy:288.86p Change: 0.32p (0.11%)
Prices as at 19 July 2024
Change: 0.32p (0.11%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 19 July 2024
Change: 0.32p (0.11%)
Prices as at 19 July 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and 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 is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

The fund is co-managed by Stuart Edwards and Julien Eberhardt who took over running the fund in August 2020 and August 2021 respectively. Despite their relatively short tenure on this fund, both managers have been part of the fixed income team at Invesco for well over a decade and have contributed investment ideas for a number of years.

They can invest in all types of bonds, with very few constraints placed on them. The performance of the fund hinges on their ability to interpret the bigger economic picture. They can aggressively alter the fund's investments based on what they see. They aim to shelter the portfolio when they see tough times ahead; and seek strong returns as more opportunities become available. Depending on the managers views, at different times this can be a relatively high-risk bond fund, or can be run on a conservative basis.

We think this is a good fund for exposure to the wider bond market. It takes away the hassle of deciding which type of bonds to invest in and when because the managers are given the discretion to make these decisions for you. Over the long term the aim is to deliver a total return, through the combination of capital growth and income, rather than focusing purely on generating a high yield.

Our view on the sector

Strategic bond funds have the freedom to invest across the fixed-interest spectrum, from traditional government and corporate bonds to higher-risk high-yield bonds. They can also invest up to 20% of the fund overseas and potentially benefit from currency movements. But this relies on the skill of the fund manager in making the right calls. Given the huge flexibility fund managers in this sector have, each fund should be judged on its own merits. Some focus on generating an income while others try to grow investors' money, or shelter it when times get tougher.

Performance Analysis

Since Stuart Edwards became co-manager of the fund in August 2020, the fund has beaten its peer group average performance in the IA £ Strategic Bond sector. They often invest very differently to other bond fund managers so performance can be different too. This means the fund's returns can be a bit more volatile and there will be periods of underperformance. But we ultimately think their skill will reward those who are prepared to take a long-term approach. There's no guarantees though.

Investment Philosophy

This is a 'best-ideas' fund. It will be invested in whichever parts of the market the managers think provide the best value.

Sometimes this means investing aggressively, at other times they'll be very defensive. So the fund won't necessarily deliver the highest level of income but does aim to provide some growth.

Process and Portfolio Construction

The managers invest across the spectrum from higher-risk high-yield bonds through to government bonds and cash. They'll also adjust the fund's sensitivity to changes in interest rates.

The pair are given a high level of geographical flexibility and are able use derivatives which can increase risk.

What's different about this fund is the degree to which the managers shift their investment allocations - they can be heavily weighted towards a particular theme.

The managers combine their analysis of the economy and individual bonds to shape the portfolio. We think they're very skilled at this and that's what we think separates them from other managers.

question mark Manager Track Record Based on HL Quantitative Research

  • Invesco Tactical Bond (UK) Acc
  • IA £ Strategic Bond

Source: Refinitiv Lipper

Fund Track Record

19/07/19 to 19/07/20 19/07/20 to 19/07/21 19/07/21 to 19/07/22 19/07/22 to 19/07/23 19/07/23 to 19/07/24
Annual return 9.24% 7.08% -5.65% 2.53% 5.97%

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.

Information about the fund

Fund manager biography

manager photo
Manager Name: Julien Eberhardt
Manager start date: 31 August 2021
Manager located in: Henley-on-Thames

Julien began his investment career in 2005 at Moody's as an analyst specialising in high yield and investment grade corporate issuers in the EMEA region. He joined our company in 2008 as a fixed interest credit analyst specialising in financials before taking on the additional responsibility of deputy fund manager for financial capital portfolios managed by the Fixed Interest team in March 2014. He is a graduate of École Supérieure de Commerce de Montpellier (France) and holds Masters degree in Finance from the University of Montpellier (France). He is also a CFA charter holder.

manager photo
Manager Name: Stuart Edwards
Manager start date: 31 August 2020
Manager located in: Henley

Stuart joined the company in December 2003. Initially, he was the fixed income specialist within the firm's Investment Communication team and then transferred internally to the Fixed Interest team in January 2006 as a fixed income strategist, specialising in the analysis of macro economic data and trends. In March 2010 Stuart was promoted to the role of portfolio manager of the team's cash portfolios, the Invesco Global Bond fund, and co-manager of the Invesco Global Bond fund with Michael Matthews. Previously, Stuart began his career in 1997 at Standard & Poor's as an economist, initially specialising in analysis of the Benelux region and then covering the UK fixed income and money markets with responsibility for forecasting UK economic data and providing fixed income strategy. He holds a BSc (Hons) in Business Economics with Computing from the University of Surrey and a MSc in Finance from Birkbeck College, University of London.

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 a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account