Invesco Perpetual Monthly Income Plus Z Acc

Sterling Bonds

Rated Fund 2013-2018. A strong team combining bonds and equities

As its name suggests, this fund pays a monthly income, so it is an attractive option for income-seekers. Its current yield is 4.3 per cent. The bond portfolio consists of higher-yielding corporate and government bonds and is managed by one of the UK's most highly rated fixed income teams, Paul Causer and Paul Read.

Unlike most of its peer group in the strategic bond sector, it also includes an element of equities, which gives it extra flexibility. It had 15 per cent of a maximum 20 per cent in shares at the end of 2017, but the defensive positioning of these has arguably held it back compared with other high income funds. The equity portfolio is managed by Ciaran Mallon.

Causer and Read's investment process involves three key elements. They take into account global trends, such as the general direction of monetary policy. They look at the risks involved in investing in individual bonds, and then they consider whether the potential returns sufficiently justify the risks. Mallon looks for well-managed companies that seek to deliver sustainable dividend growth.

The fund has been a long-term stalwart across Whitechurch Securities' income-focused investment portfolios. The wealth manager has invested in the fund for almost 15 years. Ben Willis, its head of research, says: 'This fund delivers a superior yield, largely through a long-term favoured proclivity to

financial debt. This has seen the fund deliver exceptional returns in the QE environment and beyond.'

Narrative and ratings content all as of 01 January 2018.

See all Money Observer rated funds
Name
Invesco Perpetual Monthly Income Plus Z Acc
Manager
Invesco Fund Managers Limited
Type
Open Ended Investment Company
ISIN
GB00B8N45P45
Sector
£ Strategic Bond
Launched
12/11/2012
OCF
0.72 %
Risk Rating
1
3 Year Sharpe
0.88
3 Year Alpha
2.28
Yield
4.7 %
Benchmark
N/A
The fund invests in high yielding corporate and Government bonds, together with UK equities. In pursuing the objective, the fund managers may include investments that they consider appropriate which include transferable securities, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions.
Holding %
Long Gilt Future Jun 27 18 4.01 %
US 10 Year Note (CBT) June18 2.15 %
Lloyds Bank plc 13% 1.97 %
Barclays Bank plc 14% 1.64 %
Mexico (United Mexican States) 7.5% 1.61 %
HBOS Capital Funding LP 6.46% 1.51 %
Nationwide Building Society 1.28 %
Republic of South Africa 8.75% 1.21 %
Virgin Media Sec Finance PLC 4.88% 1.18 %
RWE AG 7% 1.18 %
Region %
United Kingdom 92.18 %
Sector %
Consumer Cyclical 24.22 %
Financial Services 19.66 %
Utilities 14.01 %
Consumer Defensive 12.44 %
Industrials 12.15 %
Healthcare 8.85 %
Name
Invesco Fund Managers Limited
Address
RG9 1HH,, Oxfordshire, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Ciaran Mallon
Joined 10/15/2013

Ciaran has worked in equity markets since 1994. After completing his Chemistry degree at Oxford University he joined HSBC Private Clients where he worked as an Investment Analyst. He joined United Friendly Asset Management (UFAM) in 1999 where he worked as a Fund Manager. UFAM was acquired by Royal London Asset Management (RLAM) in 2000. Ciaran left RLAM in 2004 and joined Invesco Perpetual in January 2005.

Paul Read
Joined 02/06/1999

Paul began his career with UBS (Securities) Ltd, then moved to Merrill Lynch International in 1986. Paul initially worked on the bond sales desk, covering institutional investment managers, before moving onto debt trading and working as a director of fixed income trading in Tokyo from 1991 and in Paris from 1993. Paul joined Perpetual's Fixed Interest team in 1995 and is Joint Head of Fixed Interest Investment with Paul Causer.

Paul Causer
Joined 02/06/1999

Paul is based in our Henley office. He began his investment experience in 1983, prior to which he achieved a BSc in Economics at the London School of Economics. He joined the group in 1994 and Co-Heads the Fixed Income Team.

Data provided by Morningstar.

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You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.