INVESCO PERPETUAL Corporate Bond Accumulation Units
HL comment
Our view on this Fund
The financial sector remains fragile and it will continue to cause a headwind for the bond markets. The managers believe some support should come in the form of interest rate cuts which is traditionally good for the high quality end of the bond market. In recent months, the fund’s exposure to UK government bonds has been reduced while it maintains exposure to investment grade bonds where current yields are extremely attractive.
12-11-2008
Information from the fund manager
Please note: The information in this box has been provided by, and is issued by, the fund manager and not Hargreaves Lansdown.
HL group comment: INVESCO PERPETUAL
Our view on this Fund Management Group as a whole
The company was formed by the merger of Invesco and Perpetual in December 2000 following the acquisition of the two companies by Amvescap. In the UK alone the group manages over 40 funds, and with £29.2 billion worth of funds under management this makes them one of the largest unit trust companies in the UK. The group trades as Amvescap outside the UK and has a web of world-wide offices in over 30 countries which few investment groups can match. This is a group that has excelled in managing UK equities and we expect the performance to continue.
09-10-2008
HL sector comment: GBP Corporate Bond
Our view on this sector
Yields on many investment grade and higher risk high yielding bonds have gone up dramatically in the last few months as many investors have sold forcing prices down and yields up. The level of defaults being priced in looks historically high and are far greater than seen during the Great Depression giving an opportunity for investors to tap into high yields and potentially capital growth as global economic concerns ease. Recent sector changes make it easier for investors to compare like with like in the corporate bond universe.
20-11-2008