Invesco Global Bond (UK)

Mainly invests in developed world government debt, some corporate bond exposure.

  • 90.71p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 150.56p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 5.00% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.00%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.17%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 2.20%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 01 December 2020, fund data last updated 23 February 2012

The fund mainly invests in government bonds from developed economies - predominantly these are Sterling, US$ and Euro denominated; international currency exposure may or may not be hedged back to sterling. The fund does not invest exclusively in sovereign debt, the mandate also enables the manager to invest a small proportion of the fund in investment grade and sub investment grade corporate bonds. The fund is structured with a view to out performing its peer group - the IA Global Bond sector. Bonds issued by major governments and companies will be more stable than those issued by emerging markets or smaller corporate issuers; in the event of an issuer experiencing financial difficulty, there may be a risk to some or all of the capital invested. Any historical or current yields quoted should not be considered reliable indicators of future performance.

Fund summary

Sector Global Bonds
Structure OEIC
Launched March, 1992
Size £295m
Yield 2.20%
Charging basis Income
Dividends paid 30 Jun, 31 Dec

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.17%

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Investment process

The Invesco Perpetual Global Bond Fund seeks to achieve a good investment return in the medium to long term, combined with relative security of capital, by investing mainly in sovereign debt with some exposure to quality and high yield corporate debt. The management team begins with a review of global fixed income markets with the aim of identifying interest rate anomalies through the evaluation of the local macro economic and monetary environments. The global economic team in Henley will provide input into this process, as does external analysis from preferred City brokers. This overview is then combined with considerations of currencies, global yield curves, relative values in differing markets and credit spreads. Individual portfolio securities represent the best ideas derived from the fundamental research that fit into this market overview.

Whilst the fund is built around high quality OECD government debt, the managers may also include exposure to corporate bonds if they perceive that more attractive investment opportunities are available. Currency exposure and managing interest rate sensitivity will also act as a driver of returns. The manager can take steps to reduce the potential negative impact of an increase in inflationary expectations but generally the fund will tend to struggle more under such circumstances.

Manager research

Average monthly relative returns

  • 15/16 -1.30%
  • 16/17 0.71%
  • 17/18 -0.25%
  • 18/19 -0.25%
  • 19/20 0.00%

Bestinvest MRI

  • 3 years -0.17%
  • 5 years -0.22%
  • Career -0.10%
  • 3 years 38.20%
  • 5 years 29.80%
  • Career 42.50%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Stuart Edwards

Edwards joined Invesco in 2002 and was transferred internally to the UK fixed interest team in 2006. Edwards began his career in 1997 as economist. He has a BA (Hons) in Business Economics and Computing from the University of Surrey and an MSc in Finance from Birkbeck College, University of London.

Track record

Stuart Edwards has 7.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.1%. During the worst period of relative performance (from December 2013 - March 2020) there was a decline of 23% relative to the index. The worst absolute loss has been 7%.

Periods of worst performance

Absolute -7.00% (July 2019 - March 2020)
Relative -23.00% (December 2013 - March 2020)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

9.7316% United States Of Amer Treas Bonds 0.125% Bds 15/01/30 Usd100
5.9879% United States Of Amer Treas Notes 0.625% Nts 15/04/23 Usd100
4.5334% Buoni Poliennali Del Tes 1.45% Bds 01/03/36 Eur1000
3.7667% Italy(Republic Of) 4.5% Bds 01/05/23 Eur1000
3.201% United States Of Amer Treas Bills 0.125% Tb 15/10/24 Usd100
3.0389% Australian Govt Loans(Cmnwlth Of) 2.75% Ln Stk 21/11/27 Aud100
2.938% France(Govt Of) 0.1% Bds 25/07/36 Eur1
2.787% Indonesia Government International 7.5% Bds 15/05/38 Idr1000000
2.6579% United States Of Amer Treas Bonds 0.375% Nts 15/02/50 Usd100
2.401% Russian Federation 6.9% Bds 23/05/29 Rub1000
Source: Trustnet

Sector breakdown

Government Bonds 61.00%
Banks 18.00%
Oil & Gas 5.00%
Money Market 5.00%
Manufacturing 2.00%
Telecommunications 2.00%
Technology 2.00%
Beverages 2.00%
Unit Trusts 2.00%
Automobiles 1.00%

Portfolio

Normally the bulk of the fund will consist of government and other public securities. The fund tends to hold around 50 issues with up to 50% of assets represented by the top ten holdings. The average portfolio duration will be between 5 and 10 years. Historically sterling exposure has ranged between 10-45%.

Constraints

The fund is not restrained relative to a specified benchmark. A maximum of 75% is held in non-Government issues and 40% in sub-investment grade.

Key Investor Information - Income

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Key Investor Information - Accumulation

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