Fund goals
To provide a high level of stable monthly income, preserve capital and achieve a gross return of cash +4% p.a. over rolling three year periods.
Fund strategy
The Fund invests into the underlying Invesco Zodiac Fund whose investment horizon looks across a full credit cycle with the view that returns are maximised over the longer run for all private, credit-sensitive assets such as Senior Secured Loans.
Senior Secured Loans offer investors: stable current income streams, priority repayment, duration risk mitigation via a floating interest rate, high levels of transparency, low correlation with other asset classes, and may hedge inflation and mitigate volatility in rising interest rate environments. Senior Secured Loans are also typically secured by a lien against the assets of the borrower. Unlike traditional bonds, Senior Secured Loans are structured with floating rates, which means their coupons regularly adjust to changes in the base rate and therefore duration is low.
The Underlying Fund is managed by Invesco Senior Secured Management Inc., one of the world’s largest institutional managers of Senior Secured Loans. The senior members of the Senior Secured Loans team has a blend of deep experience and strong stability, having worked together for many years. The investment process is active, fundamental and highly disciplined. The portfolio is biased to more liquid positions in the upper mid-to-large cap segment of the Senior Secured Loans market. The team’s investment style is driven by: 1) individual bottom-up credit selection; and 2) top-down macro risk positioning tied to broader economic trends.
Key facts
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Asset classPrivate Credit
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BenchmarkBloomberg AusBond Bank Bill Index
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Name of investment teamInvesco Senior Secured Loans Team
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Location of investment teamNew York
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Fund inceptionDec 1990
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Fund size$241 million
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Investment approachFundamental, top-down and bottom-up
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Time horizon3 years
Key details
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Account period endsJune
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APIR codeCNA0805AU
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Distribution frequencyMonthly
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MER/ICR0.75%
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Minimum investment$20,000
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Unit prices updatedDaily
Growth of $10,000 invested
Important information
The Fund’s strategy changed on 14th August 2014 to a focus on income generation.
The Fund’s 10 year and since inception returns reflect the previous capital protection strategy.
Click here to learn more about this change.
Performance
| Period | Fund % | Benchmark* % | Value added % |
|---|---|---|---|
| 1 month | 0.68 | 0.32 | 0.36 |
| 3 months | 1.70 | 1.02 | 0.68 |
| 1 year | 5.29 | 4.39 | 0.90 |
| 3 years p.a. | 6.85 | 3.88 | 2.97 |
| 5 years p.a. | 6.28 | 2.34 | 3.94 |
| 10 years p.a. | 4.25 | 2.04 | 2.21 |
| Since inception p.a. | 5.38 | N/A | N/A |
Calendar year performance
| Period - calendar year | Fund % | Benchmark* % | Value added % |
|---|---|---|---|
| 2022 | -3.29 | 1.25 | -4.54 |
| 2021 | 7.88 | 0.03 | 7.85 |
| 2020 | 0.51 | 0.37 | 0.15 |
| 2019 | 6.56 | 1.50 | 5.06 |
| 2018 | -0.11 | 1.92 | -2.03 |
Distribution/growth splits
| Period | Distribution return % | Growth return % | Total return % |
|---|---|---|---|
| 3 months | 2.08 | -0.38 | 1.70 |
| 1 year | 8.39 | -3.10 | 5.29 |
| 3 years p.a. | 8.75 | -1.90 | 6.85 |
| 5 years p.a. | 6.97 | -0.69 | 6.28 |
The Fund returns in the tables above are shown after ongoing fees and assume reinvestment of income. Past returns are not a reliable indicator of future returns. Future returns may be affected by a range of factors including economic and market influences.
The Invesco Wholesale Senior Secured Income Fund, previously the Invesco Wholesale Protected Growth Fund, changed its strategy on 14 August 2014. Previously, the strategy was a diversified defensive portfolio with a capital protection strategy. The current strategy aims to provide a regular monthly income by investing in senior secured bank loan securities.
* Benchmark history is as follows:
From inception to 13/8/14 = Invesco Wholesale Protected Growth Fund was managed on an absolute basis and did not have a stated benchmark.
From 14/8/14 = Invesco Wholesale Senior Secured Income Fund was managed against the UBS Australian Bank Bank Bill Index (now called the Bloomberg AusBond Bank Bill Index).