Investments  

Fund review: Invesco Global Distribution

A new vehicle in the mixed asset space comes from Invesco Perpetual with the launch of the Global Distribution fund.

The fund aims to provide a balance of income and capital growth through it’s portfolio of fixed income securities and global equities. It will sit in the IMA’s Mixed Investment 20 - 60 per cent shares sector, which the means the fund could theoretically have anything between 20 and 60 per cent in equities. 

The fund will be managed by the group’s co-heads of fixed interest, Paul Causer and Paul Reed, alongside the global equity income team led by Nick Mustoe. It will have a similar structure to the £2.9bn Distribution fund.

Article continues after advert

The fund aims to provide a balance of income and capital growth through it’s portfolio of fixed income securities and global equities. It will sit in the IMA’s Mixed Investment 20-60 per cent shares sector, which means the fund could theoretically hold anything between 20 and 60 per cent in equities.

The fund will invest primarily in corporate and government debt securities globally – which may be unrated or sub-investment grade – together with cash and cash equivalents.

Any investment in global equities will predominantly focus on dividend growth in addition to capital appreciation.

It also has the ability to invest in money markets, collective investment schemes and other transferable securities. Derivative vehicles may also be used.

The fund was launched on 9 May and is available in Isas. The minimum investment is £500, with any additional lump sums at a minimum of £100. The minimum monthly amount into the fund is £20. There is a 5 per cent entry charge, but no exit fee.

www.invescoperpetual.co.uk

Comment: 

The expert team managing this new fund is very strong. Messrs Causer and Reed, who have been managing mixed asset funds together for 15 years, are experts in this space and have seen positive returns for many years.

The flexibility of multi-asset funds is important in this market environment, because it allows the fund managers to react to any conditions and to be able to exploit value.

The Global Distribution fund provides investors access to the entire global market across the two largest asset classes all within one fund for a relatively small price. The minimum investment is also key, as the average minimum for funds is £1,000. It can be a great starting point for new investors.

A mixed asset fund is attractive because it gives the ability to access income at the best value at different points in cycles as well as being positioned for capital appreciation.