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Invesco Perpetual Monthly Income Plus

Elite Rated by FundCalibre

Invesco are widely considered to be one of the UK’s elite bond houses and this fund is their flagship fixed income product. The fund has a flexible mandate and is designed to offer investors broad exposure to the UK fixed income market and provide a high level of income. Also, unlike many of its sector peers, it can invest up to 20% in UK equities, utilising Invesco’s considerable equity income expertise.

Company Description

Founded in 1969, Invesco Perpetual forms part of Invesco Ltd, a global independent investment management company with more than 740 dedicated investment professionals in more than 20 countries. Its focus is on equities but it also invests in fixed interest and other asset types. It was awarded the Elite Provider for Equities Rating in 2016, as well as the Elite Provider for Bonds Rating in 2015.

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Fund Manager

Paul Causer and Paul Read head up Invesco’s renowned fixed-income team and have managed this fund since its launch in 1999. Both are well respected in the industry. Ciaron Mallon has run the equity portion since October 2013. He has also had considerable success running similar equity income mandates during his time at Invesco.

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Higher-yielding bonds are typically the core holdings of this fund. But the flexibility to invest in up to 20% equities and, therefore, receive dividends, enhances the potential for the fund to achieve both income and capital returns. The fund's flexible approach allows the fund managers to actively exploit opportunities in varying market conditions.

Paul Causer & Paul Read - Fund Managers

The Investment Process

The fixed income portion is managed by the experienced Paul Read and Paul Causer, who consider both top-down and bottom-up factors. They look to add value through both anticipating changes in the monetary environment and through their own propriety credit analysis. The managers have a preference for cheaply-valued issues. The equity portion, managed by Ciaran Mallon, also considers macroeconomic themes, but with an emphasis on being able to provide a high and stable level of income.

Risk

The fund is about half as risky as the main UK stock exchange. However, the large amount of equities held makes this fund more risky than many of its sector peers. The emphasis on generating income for investors means the fund will typically have a large allocation to high yield bonds than more higher quality bonds, but the managers do keep a diligent eye on valuations.

Our Opinion

The strength and depth of Invesco’s fixed income team set this fund apart from many of its sector peers. The fact that the fund can, and, often does, have a 20% allocation to equities is a genuine differentiator. For investors seeking a monthly income this fund deserves their consideration.

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