Invesco High Yield (UK)

Invests in sub investment grade European corporate bonds.

  • 40.93p
    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.

  • 130.43p
    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!

  • 1.44%
    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).

  • 1.44%
    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.

  • 5.90%
    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 13 December 2019, fund data last updated 24 February 2012

The objective of the fund is to achieve a high level of income whilst maximising total return by investing primarily in high yield pan European corporate debt. The mandate also allows the managers to invest up to 30% of the fund in investment grade corporate bonds and government debt. Non sterling issues will be hedged back into sterling. 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 £ High Yield
Structure OEIC
Launched May, 1999
Size £159m
Yield 5.90%
Charging basis Income
Dividends paid 31 Mar, 30 Jun, 30 Sep, 31 Dec

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.44%
Ongoing charges figure 1.44%

Allocation

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Investment process

The managers undertake an active approach to portfolio management which incorporates market/sector views and research driven stock selection with the view to highlighting securities that are on attractive valuations relative to peers. Analysis generated outside the team is important and the managers maintain close links with preferred city brokers.

This fund retains some flexibility to invest outside of the high yield bond market to enable the manager to maximise investment opportunities and reduce risk during market dislocations. The fund is managed by the established team of Paul Reed and Paul Causer.

Manager research

Average monthly relative returns

  • 14/15 0.04%
  • 15/16 -0.41%
  • 16/17 0.05%
  • 17/18 0.00%
  • 18/19 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.04%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 99.30%

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

Paul Causer / Paul Read

•Causer is an Economics graduate from the LSE who began his career in 1983 in research and credit analysis with Asahi Bank. He moved on to their Treasury department trading securities and derivatives and then managed multi-currency portfolios from 1990. He joined Perpetual (now Invesco) in 1994 and is now co-head of fixed interest. •Read graduated from the University of Toronto with an Economics & History degree and gained an MBA from INSEAD. He began his career with UBS in 1985, moving to Merrill Lynch in 1986 where he was a director of fixed income trading in Tokyo from 1991 and in Paris from 1993. He joined Perpetual (now Invesco) in 1995 and is now co-head of fixed interest.

Track record

Paul Causer / Paul Read have 17.9 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.04%. During the worst period of relative performance (from March 2011 - July 2012) there was a decline of 8% relative to the index. The worst absolute loss has been 12%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance

Absolute -12.00% (December 2007 - October 2008)
Relative -8.00% (March 2011 - July 2012)

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 30 August 2019

2.8909% Dresdner Fund And Trust No 1 8.151% Bds 30/6/2031 Usd1000
2.2795% Shop Direct Finding Plc 7.75% Bds 15/11/22 Gbp100000
2.271% The Co-Operative Bank Holdings Ltd
1.8317% Newco Gb Sas 8% Bds 15/12/22 Eur100reg S
1.7796% Dutch Lion Bv 11.25% Bds 15/06/20 Eur100000
1.6878% Lloyds Bank Plc 13% Step-Up Perp Cap Secs Gbp100000
1.6362% Unicredit Spa Var Undated Nts Usd200000
1.5812% Odyssey Europe Holdco Sarl 8% Bds 15/05/23 Eur100000
1.4877% Ubs Group Funding (Switzerland) Ag Undated Frn Usd200000
1.4865% Enquest Plc 7% Nts 15/04/22 Usd100
Source: Trustnet

Sector breakdown

Banks 24.00%
Foods 9.00%
Retail 8.00%
Services 7.00%
Leisure 5.00%
Media 5.00%
Oil & Gas 4.00%
Financials 4.00%
Telecommunications 3.00%
Oil & Gas Equipment & Services 3.00%

Portfolio

A small portion of the portfolio may be held in quality bonds, but the majority will be in sub-investment grade issues. A portion of unrated issues may also be held, regardless of their perceived credit rating. The fund will normally consist of approximately 100 positions.

Constraints

There are no specific restraints on the weightings of sectors or individual holdings, but diversification is seen as an essential characteristic of the portfolio.

Key Investor Information - Income

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Key Investor Information - Accumulation

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