Posted inHead To Head

HEAD-TO-HEAD: Invesco versus Pimco

FSA compares two investment grade fixed income products: the Invesco Global Investment Grade Corporate Bond Fund and the Pimco GIS Global Investment Grade Credit Fund.
by Rupert Walker

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Conclusion

Morningstar has awarded the Invesco fund four stars based on historical returns, and a neutral analyst rating. The firm rates the Pimco product lower with two stars, and also a forward-looking analyst rating of bronze.

FE Fundinfo, which bases its assessment on a fund’s three-year history of delivering alpha, minimising relative volatility and producing consistent returns, awards the Invesco fund three crowns and two crowns for the Threadneedle fund.

In some ways the funds are alike, with both having an investment grade corporate bond mandate and referencing similar credit benchmarks, noted Poole.

“However, there are significant differences in manager style which affects their risk profiles,” said Poole. “Investors need to be aware of the respective processes and investment approaches.

Poole and his team have always rated the Pimco product highly. “It is steady, well risk-managed fund, that is suitable for a conservative portfolio,” he said.

In contrast, for investors who seek higher returns and the capacity to capture market upside, while accepting more risk, the Invesco fund would be appropriate.

“Both funds benefit from superior investment processes and world-class managers,” said Poole.

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