“We believe emerging markets still present a compelling diversification story away from core markets, given the relative strength of fundamentals versus the developed world.”
Claudia Calich and Eric Lindenbaum, Fund Managers
Reasons to consider the Invesco Emerging Local Currencies Debt Fund
- A growing market: The emerging market outlook remains positive and is well supported by strong growth, low financing needs, steady inflows and strong cash flows.
- Careful risk management: The main drivers for emerging market assets continue to be the global economic outlook and potential risks to growth. We believe that risk is over-estimated in emerging market debt while the market fully matures and recognises its actual value. The fund seeks to benefit from such inefficiency while strictly controlling risks.
- Enhanced diversification: Movements in competing asset classes such as US Treasury bonds or US high-yield bonds tend to show a low correlation to movements in local currency debt markets. By adding local debt securities to a fixed income portfolio, investors could potentially help to diversify the overall risk of their portfolio.
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Fund at a glance
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Objective
The objective of the fund is to achieve long-term capital growth and high income. The fund will invest at least two thirds of its total assets (after deduction of ancillary liquid assets) in a flexible allocation of cash, debt securities (including corporate bonds, and bonds issued by supranational organisations) and financial derivative instruments which are denominated in the currency of emerging market countries.
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Fund managers
Claudia Calich and Eric Lindenbaum
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Fund launch date
14 December 2006
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Domicile
Luxembourg
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Legal status
Luxembourg SICAV with UCITS status
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Base currency
USD
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Reference index
JPM GBI-EM GL Diversified Composite (USD)
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Important information
The value of investments and any income will fluctuate (this may partly be a result of exchange rate fluctuations) and investors may not get back the full amount invested. Past performance is not a guide to future returns. Where Claudia Calich and Eric Lindenbaum have expressed opinions, they are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals. Where Invesco has expressed views and opinions, these may change.
The Invesco Emerging Local Currencies Debt Fund invests in bonds and other fixed income securities that are subject to the risk that issuers do not make payments on such securities. The fund may be adversely affected by a decrease in market liquidity which may impair the fund’s ability to acquire or to dispose of securities at their intrinsic value.
The Invesco Emerging Local Currencies Debt Fund may invest in high yield bonds which are regarded as being more speculative (than investment grade bonds) as to the issuer’s ability to make payments of principal and interest.
The Invesco Emerging Local Currencies Debt Fund invests in derivatives. Therefore, the net asset value of the fund may, at times, be highly volatile.
The distribution and the offering of the Invesco Emerging Local Currencies Debt Fund in certain jurisdictions may be restricted by law. Persons into whose possession this document may come are required to inform themselves about and to comply with any relevant restrictions. This does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation.
Persons interested in acquiring the Invesco Emerging Local Currencies Debt Fund should inform themselves as to (i) the legal requirements in the countries of their nationality, residence, ordinary residence or domicile; (ii) any foreign exchange controls; and (iii) any relevant tax consequences.
The fund is available only in jurisdictions where its promotion and sale are permitted.
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