Fix your fixed income.

Fixed income used to be simple. Yet today’s investor faces major uncertainty.

What’s your challenge?

After many years, central banks have started to raise interest rates.
Active duration management
Skilled active bond managers can adjust duration and diversify a portfolio into less interest-sensitive bond sectors or assets to help offset this risk.
In an era of low rates, many investors have reached for higher yields, potentially increasing credit risk in their portfolios. In the event of an equity-market downturn, their fixed income may not provide the safety they think it will.
Investment grade
Maintaining exposure to core, investment-grade credit can help counteract risk in an overall portfolio.
Investors’ needs for income and yield will not diminish in the coming years.
Higher-yielding bonds
A flexible fixed-income strategy that's active and global, allowing it to search across multiple bond sectors, can help generate additional yield and growth opportunities.
Many investors have a “home-bias,” predominantly holding much of their fixed income in domestic Canadian bonds.
Global diversification
The global bond market offers investors a much wider array of opportunities to consider beyond Canada’s relatively limited bond market.
Unhedged global fixed income has volatility closer to equities than it does to traditional fixed income, reducing its potential diversification benefits.
Hedge to the Canadian dollar
Hedging foreign currency can offset that risk.

Invesco Global Bond Fund can help fix these issues

"Why do you even buy fixed income? You want it to preserve capital, give some yield and diversify away from equities. When you buy a fixed-income product, we don’t want you just checking a box and having it act like equities. We want it to actually act like fixed income."
− Matt Brill, Senior Portfolio Manager

Fund at a glance

(Series F)
Risk rating1

Yield2
2.76%
1-yr performance3
%
1-yr Quartile3

S.I. performance3
%
Fund AUM4
$M

Invesco Global Bond Fund is designed for:

1

Quality income

High-quality, core bond portfolio plus higher-yielding bonds

View chart & info

Quality: > 75% investment grade

Invesco Global Bond Fund’s high-quality holdings of investment-grade bonds can provide consistent income and preserve principal, forming a “core” foundation.

Income: Plus up to 25% higher-yielding bonds

It then adds opportunities from other bond sectors such as high-yield, emerging-market bonds and other lower-rated fixed-income securities to help provide additional yield and income.

The result:

A low-risk-rated1 portfolio with an overall investment-grade ranking.


The Fund invests primarily in investment-grade bonds and includes lower-rated bonds for added income and growth potential.

global bond fund

For illustrative purposes only.

Minimum 75% investment-grade

  • AAA
  • AA
  • A
  • BBB

Up to 25% below-investment-grade

  • BB
  • B
  • CCC and below
  • Not rated

2

Growth

Greater potential for growth and additional yield opportunities

View chart & info

Greater potential for growth and additional yield opportunities

Many Canadians focus their fixed-income holdings solely on domestic bonds. Yet Canada is a very small segment of the vast global fixed-income market. Doing so also exposes investors to a single country’s risks.

Global diversification:

With a wider range of opportunities, global fixed income tends to deliver greater potential for capital growth and diversification compared to a traditional domestic bond portfolio while also potentially offering additional yield opportunities.

Invesco Global Bond offers added diversification in a single, core portfolio.

fixed income

Source: FactSet Research Systems Inc., as at September 30, 2017 and shows annual total returns. Canadian bonds are represented by the FTSE TMX Canada Universe Bond Index; global governments by the Bloomberg Barclays Global Treasury Index; investment-grade corporate by the Bloomberg Barclays Global Corporate Investment Grade Index; securitized bonds by the Bloomberg Barclays Securitized Index; emerging markets by the Bloomberg Barclays EM Aggregate USD Index (hedged to CAD); and global aggregate by the Bloomberg Barclays Global Aggregate Index. All indices shown are hedged to CAD or are in CAD. Past performance is not a guarantee of future results. An investment cannot be made directly in an index. Performance does not represent any Invesco Canada fund.

3

Diversification

Diversify the risk
from equities

View chart & info

Diversify the risk from equities

One of the potential benefits of having higher-quality bonds in a portfolio is the protection they have historically provided during times of equity-market downturns.

Historically, when stocks have gone down, high-quality global bonds have risen.

high quality bonds chart

Source: FactSet Research Systems Inc. Data is as at December 31, 2016. Bonds are represented by the Bloomberg Barclays Global Aggregate Bond Index (hedged to CAD), and stocks are represented by the MSCI World Index (Net), in local currency. MSCI World Index local-currency returns serve as a proxy for CAD-hedged returns. Returns shown are for the average 12-month calendar year-end. Past performance does not guarantee future results. You cannot invest directly in an index.

In addition to helping buffer this equity risk, global bonds, when currency hedged, can also effectively complement domestic bonds in an overall portfolio.

Invesco Global Bond actively hedges currency5 and provides this high-quality bond exposure.

Global perspective and deep market knowledge

The investment team is backed by the strong resources of Invesco Fixed Income’s global market platform, which provides market scale, buying power and deep macro and credit research .

>US$300B
in assets under management*
>165
investment professionals*
18 years'
average experience*
10
locations in key global markets*

Proven experience

Since 20096 , Invesco’s Global Bond investment team has been successfully managing “core plus” strategies across fixed income markets, seeking to add value through macro and sector decision making and careful security selection.

Global locations

invesco global locations

For illustrative purposes only. Subject to change without notice.
* Source: Invesco. AUM and investment specific experience for investment professionals, as at September 30, 2017. Invesco Fixed Income is in ten key locations with additional Invesco colleagues in two.
Shenzhen and Mumbai represent wholly owned Invesco subsidiaries and are not included in the official Invesco Fixed Income location count.

Interested in Invesco Global Bond Fund?


Still considering?


Understanding bond ratings - more

Disclosures

Duration is a measure of the sensitivity of the price of a bond to a change in interest rates. Generally, the higher a bond’s duration, the more its value will fall as interest rates rise.


1

Invesco Canada Ltd. has rated the risk (volatility) of this Fund as low. The rating is based on how much returns have changed from year to year and will change overtime. A fund with a low risk rating can still lose money.


2

The yield shown above is the yield to maturity. Quoted yield should not be construed as an amount an investor would receive from the Fund, and is subject to change. As of Dec. 31, 2017


3


4

As of


5

Hedging is at the portfolio sub-advisor’s discretion; however, typically the Fund will hedge 90% or more of its foreign-currency exposure.

6

The investment team has managed a “Core Plus” strategy in the United States since 2009. This strategy differs from the Canadian fund, which was launched in 2016.

Invesco Fixed Income (IFI) is a unit comprising Invesco Senior Secured Management, Inc. of New York, U.S.; Invesco Advisers, Inc. of Atlanta, U.S.; Invesco Asset Management Ltd. of London, U.K.; and Invesco Canada Ltd. of Toronto, Canada.

Past performance is not a guarantee or reliable indicator of future results.

Invesco® and all associated trademarks are trademarks of Invesco Holding Company Limited, used under licence.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Unless otherwise indicated, rates of return for periods greater than one year are historical annual compound total returns including changes in unit or share value and reinvestment of all distributions, and do not take into account any sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns.