Invesco has unveiled two global investment grade credit funds for UK defined benefit pension schemes.
The strategies, which adopt a ‘buy and maintain’ approach, aim to generate income that can be used to meet liability cashflows.
According to the fund manager, 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.
Both funds, domiciled in Luxembourg, are managed by Invesco’s co-head of global investment grade credit Luke Greenwood, based in London.
Securities in the portfolio are selected using a bottom-up style targeting companies that demonstrate resilient cash flow generation that can withstand changes in market conditions, the firm said. ESG is also embedded in the investment process.
Greenwood said: “Clients are increasingly prioritising sustainability objectives and so the integration of ESG considerations into our credit research process helps meet these requirements.”
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