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HEAD-TO-HEAD: Invesco vs Schroders
FSA compares the Invesco Euro Corporate Bond Fund with the Schroder ISF Euro Corporate Bond Fund.
Ashis Dash, Morningstar
Euro Corporate Bond Funds
The European Central Bank has cut down its post-crisis asset buying programme and in September it is expected to announce an end to the purchases. But the ECB remains well behind the US Federal Reserve in actually winding down its monetary easing policy.
Such divergence should, in principle, make European bonds more attractive than US ones. However, many other factors play a role.
“Central banks’ stepping back from their monetary easing program could cause increased volatility in the market,” Ashis Dash, associate director for fixed income strategies manager research at Morningstar, told FSA. “Another factor could be liquidity, which could be impacted by the supply-and-demand dynamic, and it will depend on how much issuance comes to the market.”
All this may end up being affected by geopolitics, with trade wars initiated by the US or with Eurosceptics gaining power in Italy, one of the most indebted countries in Europe.
With these complex factors as the backdrop, FSA asked Dash for a comparative analysis of the Invesco Euro Corporate Bond Fund and the Schroder ISF Euro Corporate Bond Fund.
|
Invesco Euro Corporate Bond Fund |
Schroder ISF Euro Corporate Bond Fund |
|
| Size |
€2.33bn ($2.88bn) |
€8.87bn ($10.97bn) |
| Inception |
31 March 2006 |
30 June 2000 |
| Manager |
Paul Read (since 2006) Julien Eberhardt (since 2016) |
Patrick Vogel (since 2012) |
| Morningstar Rating |
**** |
***** |
| Morningstar Analyst Rating |
Silver |
Bronze |
| FE Crown Fund Rating |
*** |
***** |
| Fees (OCF) |
1.27% |
1.04% |
Data: FE, Morningstar
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