Invesco has launched the Invesco Sustainable Allocation Fund and the Invesco Global High Yield Short Term Bond Fund, both Luxembourg-domiciled Ucits to be registered widely across Europe.
The Invesco Sustainable Allocation Fund – co-managed by senior portfolio manager at Invesco Quantitative Strategies (IQS) Manuela von Ditfurth and Martin Kolrep, senior portfolio manager IQS, – is the first ESG product in Invesco’s cross-border range, designed to meet investors’ growing demand for sustainable and responsible investment products.
The fund aims to achieve a positive total return over a market cycle and an efficient risk-return profile with stable returns by investing primarily in equities and debt securities globally, as long as investments meet sustainability criteria.
Sergio Trezzi, head of retail distribution EMEA and LatAm said: “Demand for ESG and SRI products is clearly growing, and we believe this is a secular trend. The Invesco Sustainable Allocation Fund addresses investors’ needs for long-term total return through investment in global fixed income and equities with an integrated ESG approach.
“With the flexible asset allocation and focus on managing volatility we aim to provide an attractive return compared to traditional balanced funds at relatively lower volatility.”
By its part, the Invesco Global High Yield Short Term Bond Fund, co-managed by fixed income managers Joe Portera and Jennifer Hartviksen, invests in the global high yield sector with a short-term focus and an average portfolio duration between one and three years.
Although this fund will invest primarily in global high yield bonds, its investment team will intend to harvest other income opportunities including emerging market debt, convertibles and unrated debt securities.
Sergio Trezzi said: “Offering investors a product that aims to deliver consistent income at lower duration risk allows us to consolidate and expand our product range along two lines. First, this offering represents another step in our efforts to enrich our high yield offering; second, it will help us to further address the growing need for income and risk-adjusted income that we observe in the cross-border market.”