Challenging environment: a mixed asset perspective

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  • 11 mins 02 secs

Lewis Aubrey-Johnson, Head of Fixed Income Products, and UK Equities Fund Manager Ciaran Mallon, discuss the difficulties experienced by UK equity and bond markets in 2018, and reflect on the performance of some of our key mixed asset funds.

Watch this latest update, where Lewis and Ciaran discuss:

  • The UK equity and bond market environment in 2018
  • How the Invesco Monthly Income Plus and Distribution funds (UK) have performed
  • Changes in their equity/bond asset allocation
  • Where they are finding investment opportunities

Investment risks

The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. The securities that the Invesco Distribution and Monthly Income Plus funds (UK) invest in may not always make interest and other payments nor is the solvency of the issuers guaranteed. Market conditions, such as a decrease in market liquidity for the securities in which the funds invest, may mean that the funds may not be able to sell those securities at their true value. These risks increase where the funds invest in high yield or lower credit quality bonds and where we use derivatives. The funds have the ability to make use of financial derivatives (complex instruments) which may result in the funds being leveraged and can result in large fluctuations in the value of the funds. Leverage on certain types of transactions including derivatives may impair the funds’ liquidity, cause them to liquidate positions at unfavourable times or otherwise cause the funds not to achieve their intended objectives. Leverage occurs when the economic exposure created by the use of derivatives is greater than the amount invested resulting in the funds being exposed to a greater loss than the initial investment. The funds may be exposed to counterparty risk should an entity with which the funds do business become insolvent resulting in financial loss. The funds may invest in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events. Changes in interest rates will result in fluctuations in the value of the funds.

Important information

Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. For the most up to date information on our funds, please refer to the relevant fund and share class-specific Key Investor Information Documents, the Supplementary Information Document, the Annual or Interim Reports and the Prospectus, which are available using the contact details shown. Issued by Invesco Fund Managers Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire, RG9 1HH, UK. Authorised and regulated by the Financial Conduct Authority.




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