Invesco said the Sustainable Allocation fund is the first ESG (environmental, social and governance) product in its cross-border range and has an integrated sustainable responsible investment (SRI) focus. It is designed to meet investors’ growing demand for sustainable and responsible investment products.
Managed by senior portfolio managers with a focus on multi-asset strategies, Manuela von Ditfurth and Martin Kolrep at Invesco Quantitative Strategies (IQS) aim to achieve a positive total return over a market cycle and an efficient risk-return profile with stable returns.
This will be through investing primarily in a flexible allocation of equities and debt securities globally, which meet its criteria on sustainability.
Sergio Trezzi, head of retail distribution EMEA (ex UK) & 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.”
Meanwhile, the Global High Yield Short Term Bond fund aims to provide income and to a lesser extent long-term capital growth, with an average portfolio duration between one and three years.
The investment universe will primarily encompass global high yield bonds. However, the team intends to also harvest other income opportunities generated from elsewhere on the global Invesco fixed income (IFI) platform, including emerging market debt, convertibles and unrated debt securities.
It is managed by fixed income managers Joe Portera and Jennifer Hartviksen, who are based in the US and Canada, and are supported by IFI’s 18-member high yield team located in the US and Europe.
Trezzi added: “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.”