Invesco launches two 'buy and maintain' funds for UK defined benefit pension schemes
Invesco, one of the world's largest independent investment management firms with over USD1 trillion in assets under management, has launched two new funds this week: Invesco Global Buy and Maintain Credit 2020-2035 Fund and Invesco Global Buy and Maintain Credit 2030-2050 Fund.
Both are Luxembourg-domiciled FCP-RAIFs available to institutional investors.
The funds offer clients exposure to global investment grade credit, mostly denominated in USD, EUR and GBP, and with the aim to generate income that can be used to meet liability cashflows whilst simultaneously producing a predictable level of return. The funds take a conservative, low turnover approach, with holdings broadly diversified across sector, country and issuer.
Both funds will be managed by Luke Greenwood, Co-Head of Global Investment Grade Credit at Invesco, who is based in London. He will be supported by Lyndon Man, Co-Head of Global Investment Grade Credit, and Michael Booth, Portfolio Manager.
The managers select securities in a ‘bottom-up’ style, targeting companies with strong, resilient cashflow generation that can withstand changes in market conditions as we transition through different stages of the economic cycle. ESG considerations are embedded into the fundamental research process.
Invesco has been managing Buy and Maintain portfolios for institutional clients since 2014, and currently manages mandates across the US, Europe and Asia totalling GBP17.2 billion. Invesco is one of the world’s largest fixed income managers, with GBP274 billionn under management and 228 investment professionals based across 14 locations around the world.
“Demand for Buy and Maintain solutions has risen, particularly in the UK where mature pension schemes are looking to de-risk and are increasingly becoming cash flow negative,” says Chris Evans, Head of UK Institutional & EMEA Consultant Relations at Invesco.” We are launching the Funds in response to our client’s need for strategies that generate income in line with their liability cashflows, and we’re excited to be able to bring our global experience in buy and maintain portfolio management to the UK market.”
“Our ability to work collaboratively with clients means we are able to provide a range of bespoke solutions, while constantly delivering on yield targets,” says Luke Greenwood, Senior Portfolio Manager and Co-Head of Global Investment Grade Credit at Invesco. Clients are increasingly prioritising sustainability objectives and so the integration of ESG considerations into our credit research process helps meet these requirements.”