Invesco launches strategic bond fund

19 January 2010

Invesco Perpetual has launched a flexible bond fund that will be managed by fixed interest duo Paul Causer and Paul Read.

The Invesco Perpetual Tactical Bond fund will invest in all types of bonds and cash and will sit in the strategic bond sector.

Given the highly unconstrained nature of the fund, it will not be managed to an income target and is not suitable for investors seeking a consistent level of yield.

Causer and Read bring more than 50 years combined investment experience to the fund.

"Over the long term, because we have the flexibility to move portfolios across the risk spectrum, we would hope that we can outperform cash and indeed the major government and credit markets," says Read.

He adds: "The high-conviction management style means the fund is able to alter its asset allocations quickly which can lead to material changes in the risk profile of the fund."

There is an annual management fee of 1.25% while the initial charge is 5%. However, ISA investors will get a reduced rate of 3% initial charge, until further notice.

The fund launch brings Invesco's tally of bond funds to eight.

Bond funds had a great year in 2009, beating equities in fund sales. From January to November, net sales reached £9.6 billion, which was a not inconsiderable 41% of total net retail sales.

However, over the last few months, equity and property funds have come back into fashion, outselling bond sectors.

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