Fixed income used to be simple. Yet today’s investor faces major uncertainty.
"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
High-quality, core bond portfolio plus higher-yielding bondsView chart & info
Invesco Global Bond Fund’s high-quality holdings of investment-grade bonds can provide consistent income and preserve principal, forming a “core” foundation.
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.
A low-risk-rated1 portfolio with an overall investment-grade ranking.
For illustrative purposes only.
Greater potential for growth and additional yield opportunitiesView chart & info
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.
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.
Source: FactSet Research Systems Inc., as at December 31, 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.
Diversify the risk
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.
Source: FactSet Research Systems Inc. Data is as at December 31, 2017. 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.
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 .
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.
CIO, Global Investment Grade & Emerging Markets
Head of Global Macro Research & Multi-Sector,
Senior Portfolio Manager
Senior Portfolio Manager
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.
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.
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.
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 Mar. 31, 2018
Hedging is at the portfolio sub-advisor’s discretion; however, typically the Fund will hedge 90% or more of its foreign-currency exposure.
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 2016.7
Source: FactSet Research Systems Inc. Data is as at December 31, 2017. Global bonds are represented by the Bloomberg Barclays Global Aggregate Bond Index (hedged to CAD), and global equities are represented by the MSCI World Index (Net), in local currency. The 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.
The Bloomberg Barclays Global Aggregate Bond Index is an unmanaged index considered representative of global investment-grade fixed-income markets. The MSCI World Index is an unmanaged index considered representative of stocks of developed countries.
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.