Notification of change to the underlying fund of J01 Invesco Bond

07 Oct 2022

We have been notified by Invesco Funds (the “Company”) of an upcoming change to the underlying fund of J01 Invesco Bond (the "Affected Fund"). 

Further to an ongoing review by the Company, they have advised that from 7 November 2022 the expected level of leverage of the underlying fund will be increased from 150% to 600%.

The Company has stated that the higher leverage is mainly driven by relative value short term interest rate futures (less than 2 years) and swaps (fixed income instruments with a short duration and used for duration management). The short duration exposure combined with the low volatility of near-term interest rates leads to an extremely low volatility in those instruments and therefore requires large notional positions in order to achieve a meaningful exposure in those markets.  Accordingly, high notional leverage is not necessarily representative of the economic risk in the underlying fund of the Affected Fund.

A copy of the notification from the Company can be viewed opposite.

Should you have any questions regarding these changes, please contact the Investment Marketing Team, or seek the advice of your usual financial adviser.