Asset Management Awards for Excellence 2021 – Best Fund Provider – Investment Grade Bond

Best Fund Provider Investment Grade Bond



Best Fund Provider – Investment Grade Bond

Lyndon Man

co-head of Global Investment Grade
Invesco Fixed Income

“This award is a strong recognition of the great achievements and efforts from across Invesco; and is especially welcoming considering the challenging conditions of 2020.
Further, it is a testimony to our investment philosophy focusing on thematic investing which we continue to build and improve on.

We look forward to continuing delivering strong risk adjusted performance to our clients.”

Winners rationale

As investors seek to diversify their portfolios in times of substantial and prolonged volatility, investment grade bonds have been playing a prominent role in high yield and tech stock-heavy portfolios of HNWIs in Asia. In terms of managing investment grade strategies, Invesco has gone from strength to strength, and in 2020 it distinguished itself from peers by outperforming in terms of performance, risk management, and client services.

Invesco’s flagship investment grade strategy — Invesco Global Investment Grade Corporate Bond Fund — has seen tremendous asset growth, from US$2.1 billion at the beginning of 2020 to US$ 3.5 billion. Meantime, the fund’s performance has been ranked in the top decile on a five year basis and since inception. In addition to that, it has outperformed its benchmark over every three year period since inception.

To generate this impressive track record, the strategy — which is benchmark-agnostic — has successfully identified the key long term driver of credit markets across key thematic risk factors. Some of the current themes include: “Secular stagnation reinforced: prolonged low growth and subdued inflation”; “Financial deleveraging trends with improvement in asset quality and capital”; and “Defensive play on the energy recovery story”.

The investment themes typically target opportunities across regions, sectors, and currencies of the bonds, yield curve and capital structure. The most appropriate bonds to reflect these views are then selected by the firm’s global credit analysts team, which works alongside the portfolio managers to populate the investment themes. This approach to security selection focuses on ‘avoiding the losers’ rather than ‘selecting only the winners’, resulting in highly diversified portfolios, with reduced idiosyncratic risk.

During COVID-19, when in-person meetings became more difficult than ever, Invesco has understood that its private bank partners and end clients need materials that are quick to the point, reader-friendly and digital. In response to these needs, the firm stepped up its digital promotion, and its sales and marketing staff have been proactively providing customised content to its clients.

To better equip and engage its private banking clients, the firm has developed a dedicated website for the investment grade strategy, detailing everything from previous financial crises, asset class performance, default rate analysis and the fund’s thematic approach and track record performance.

Invesco is Asian Private Banker’s Best Fund Provider – Investment Grade Bond.

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