Citywire Engage logo
Invesco Logo

INVESCO FIXED INCOME

Beyond core by design

Navigating market challenges with agility

Fixed income markets look materially different than just a few years ago. Elevated starting yields,¹ a renewed focus on income, and persistent macro uncertainty have reshaped the opportunity set for investors. At the same time, fixed income has been playing an increasingly important role in diversified portfolios amid continued equity concentration and heightened volatility.

As investors seek durable sources of income, a more flexible approach may be required, beyond traditional core exposures.

Video

Diversifying for income

Amid shifting growth and inflation dynamics, portfolio managers Matt Brill and Todd Schomberg discuss which sectors they’re leaning into and where they’re seeing opportunities across asset classes.

Play video

WHY INVESCO

Broadening the opportunity set

Invesco’s investment grade platform combines the resources of a global asset manager with the ability to add value through agile portfolio management.

Conviction, backed by scale

Supported by Invesco’s $570+bn2 fixed income platform, our IG team delivers broad market access with the agility to pursue our best ideas.

Exposure beyond just core

Our portfolios extend well beyond traditional core with active multi-sector exposure across corporates, securitized credit, and non-US debt to expand sources of income and diversification.

Unique research process

We combine top-down macro and fundamental bottom-up research, supported by our team of 60+ analysts covering around 3,500 issuers, to capitalize on market inefficiencies.

$101bn

Investment grade fixed income AUM3

19+ years

Average portfolio manager experience in investment grade credit4

170

Professionals across the fixed income investment team5

4 and 5 star

Morningstar ratings on several investment grade credit funds6

EXPERTISE IN ACTION

Invesco Total Return Bond ETF (GTO)

Morningstar Gold Rated Strategy7

As the bond market continues to evolve, GTO provides a flexible way to access multiple sources of income beyond just core. The strategy combines active security selection, sector rotation, and disciplined risk management to help adapt as volatility and dislocations arise.

MORE WAYS TO ACCESS OUR CAPABILITIES

Mutual Funds

With multi-sector flexibility and a focus on risk-adjusted outcomes, our lineup of mutual funds provides diversified exposure across core, core plus, corporate, and short-term strategies.

CPBYX

Invesco Core Plus Bond Fund

Seeks enhanced income and return potential by combining traditional core and non-core fixed income securities.

Morningstar rating8

OPBYX

Invesco Core Bond Fund

Seeks total return through a diversified portfolio of higher quality US investment grade fixed income.

Morningstar rating9

ACCHX

Invesco Corporate Bond Fund

Seeks current income with preservation of capital by investing primarily in corporate bonds.

Morningstar rating10

STBYX

Invesco Short Term Bond Fund

Seeks enhanced current income and attractive total returns through an active portfolio focused on shorter-duration bonds.

Morningstar rating11

SMAs

For more personalized solutions, our SMAs provide a customized approach to investment grade credit, allowing portfolios to be tailored to duration preferences, tax considerations, liquidity needs, and values.

LOOKING AHEAD

AI: Bond market risk or opportunity?

Artificial intelligence (AI) has emerged as a defining theme across credit markets, raising questions about whether the buildout presents risk, opportunity, or both. Todd Schomberg, Head of Investment Grade Portfolio Management at Invesco Fixed Income, shares his perspective and where his team is focused as the opportunity set continues to evolve.

How are you viewing the development of the “AI revolution” from your seat?

What type of AI-related investment opportunities are you focused on today?

What are the key considerations for your teams when assessing data center development opportunities?

Connect with our team

Invesco's IG team is regularly featured at industry conferences, including our proprietary Invesco Fixed Income Global Summit and Breakthrough event. If you'd like to hear from them firsthand, get in touch, and we'll keep you updated on upcoming opportunities.

Discover more from Invesco

Expanding the toolkit

The role ETFs play in modern fixed income allocation

Footnotes

  1. Source: Bloomberg, as of 7/8/2026, yield to worst for the Bloomberg US Credit Index was in the 15th percentile across the last 10 years. Past performance is not a guarantee of future results.

  2. Source: Invesco as of June 30, 2026.

  3. Source: Invesco as of June 30, 2026.

  4. Source: Invesco as of June 30, 2026.

  5. Source: Invesco as of June 30, 2026.

  6. Source: Morningstar Inc. Ratings are based on a risk-adjusted return measure that accounts for variation in a fund’s monthly performance, placing more emphasis on downward variations and rewarding consistent performance. As of 6/30/26, Invesco Core Bond Fund Y share had an overall rating of 4 stars out of 418 funds. As of 6/30/26, Invesco Corporate Bond Fund Y share had an overall rating of 4 stars out of 155 funds. As of 6/30/26, Invesco Core Plus Bond Fund Y share had an overall rating of 4 stars out of 503 funds. As of 6/30/26, Invesco Variable Rate Investment Grade ETF had an overall rating of 5 stars out of 213 funds.

  7. The Morningstar Medalist Rating for funds is the summary expression of Morningstar’s forward-looking analysis of investment strategies. The Morningstar Medalist Rating for funds is expressed on a five-tier scale running from Gold to Negative. The top three ratings of Gold, Silver, and Bronze all indicate that their analysts expect the rated investment vehicle to produce positive alpha relative to its Morningstar Category index or category median over the long term. GTO Gold Medalist Rating of May 31, 2026.

  8. Source: Morningstar Inc. Ratings are based on a risk-adjusted return measure that accounts for variation in a fund’s monthly performance, placing more emphasis on downward variations and rewarding consistent performance. As of 06/30/2026 the Fund had an overall rating of 4 stars out of 503 funds and was rated 4 stars out of 503 funds, 3 stars out of 467 funds and 4 stars out of 363 funds for the 3-, 5- and 10- year periods, respectively.

  9. Source: Morningstar Inc. Ratings are based on a risk-adjusted return measure that accounts for variation in a fund’s monthly performance, placing more emphasis on downward variations and rewarding consistent performance. As of 06/30/2026 the Fund had an overall rating of 4 stars out of 418 funds and was rated 4 stars out of 418 funds, 3 stars out of 384 funds and 4 stars out of 286 funds for the 3-, 5- and 10- year periods, respectively.

  10. Source: Morningstar Inc. Ratings are based on a risk-adjusted return measure that accounts for variation in a fund’s monthly performance, placing more emphasis on downward variations and rewarding consistent performance. As of 06/30/2026 the Fund had an overall rating of 4 stars out of 155 funds and was rated 4 stars out of 155 funds, 2 stars out of 150 funds and 5 stars out of 96 funds for the 3-, 5- and 10- year periods, respectively.

  11. Source: Morningstar Inc. Ratings are based on a risk-adjusted return measure that accounts for variation in a fund’s monthly performance, placing more emphasis on downward variations and rewarding consistent performance. As of 06/30/2026 the Fund had an overall rating of 3 stars out of 517 funds and was rated 3 stars out of 517 funds, 3 stars out of 488 funds and 3 stars out of 379 funds for the 3-, 5- and 10- year periods, respectively.

Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by any Federal Government Agency

The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

Class Y shares are closed to most investors. Please see the prospectus for more details.

About Risk

There are risks involved with investing in ETFs, including possible loss of money. Index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.

ETF Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Fund and tender those Shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 10,000, 20,000, 25,000, 50,000, 80,000, 100,000 or 150,000 Shares.

ETFs generally have lower expenses than actively managed mutual funds due to their different management styles. Most ETFs are passively managed and are structured to track an index, whereas many mutual funds are actively managed and thus have higher management fees. Unlike ETFs, actively managed mutual funds have the ability react to market changes and the potential to outperform a stated benchmark. Since ordinary brokerage commissions apply for each ETF buy and sell transaction, frequent trading activity may increase the cost of ETFs. ETFs can be traded throughout the day, whereas, mutual funds are traded only once a day. While extreme market conditions could result in illiquidity for ETFs. Typically they are still more liquid than most traditional mutual funds because they trade on exchanges. show less

All fixed income securities are subject to two types of risk: credit risk and interest rate risk. Credit risk refers to the possibility that the issuer of a security will be unable to make interest payments and/ or repay the principal on its debt. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.

The income you receive from the fund is based primarily on prevailing interest rates, which can vary widely over the short and long term. If interest rates drop, your income may drop as well.


Unlike individual bonds, bond funds have fees and expenses and most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible.


The risks of investing in securities of foreign issuers, including emerging market issuers, can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.

Artificial Intelligence (AI) - Companies engaged in AI typically face intense competition and potentially rapid product obsolescence. These companies are also heavily dependent on intellectual property rights and may be adversely affected by loss or impairment of those rights. Additionally, AI companies typically invest significant amounts of spending on research and development, and there is no guarantee that the products or services produced by these companies will be successful. Companies that are capitalizing on innovation and developing technologies to displace older technologies or create new markets may not be successful.

In general, stock values fluctuate, sometimes widely, in response to activities specific to the company as well as general market, economic and political conditions.

Diversification does not guarantee a profit or eliminate the risk of loss.

All information is sourced from Invesco, unless otherwise stated.


Some vehicles mentioned are offered via affiliates of Invesco Distributors, Inc. Not all of the capabilities and

delivery vehicles listed are available on all platforms. Please consult your Invesco representative for more

information.

Invesco Distributors, Inc. and Invesco Advisers, Inc. do not provide legal or tax advice. This information is provided for general educational purposes only and is not to be considered legal or tax advice. Investors should consult with their legal or tax advisors for personalized assistance, including information regarding any specific state law requirements.

GTO

Mortgage- and asset-backed securities, which are subject to call (prepayment) risk, reinvestment risk and extension risk. These securities are also susceptible to an unexpectedly high rate of defaults on the mortgages held by a mortgage pool, which may adversely affect their value. The risk of such defaults depends on the quality of the mortgages underlying such security, the credit quality of its issuer or guarantor, and the nature and structure of its credit support.

Derivatives may be more volatile and less liquid than traditional investments and are subject to market, interest rate, credit, leverage, counterparty and management risks. An investment in a derivative could lose more than the cash amount invested.

Because the Fund may invest in other investment companies, it’s subject to the risks associated with the investment company and its investment performance may depend on the underlying investment company’s performance. Moreover, the Fund and its shareholders will incur its pro rata share of the underlying investment companies’ expenses, which will reduce the Fund’s performance, and the purchase of shares of some investment companies.

Municipal securities are subject to the risk that legislative or economic conditions could affect an issuer’s ability to make payments of principal and/ or interest.

An issuer may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer’s credit rating.

Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.

The Fund may invest in privately issued securities, including 144A securities which are restricted (i.e. not publicly traded). The liquidity market for Rule 144A securities may vary, as a result, delay or difficulty in selling such securities may result in a loss to the Fund.

The Fund currently intends to effect creations and redemptions principally for cash, rather than principally in-kind because of the nature of the Fund’s investments. As such, investments in the Fund may be less tax efficient than investments in ETFs that create and redeem in-kind.

The credit research process utilized by the Fund to implement its investment strategy in pursuit of its investment objective considers factors that include, but are not limited to, an issuer’s operations, capital

structure and environmental, social and governance (“ESG”) considerations. Credit quality analysis therefore may consider whether any ESG factors pose a material financial risk or opportunity to an issuer.

Risks of collateralized loan obligations include the possibility that distributions from collateral securities will not be adequate to make interest or other payments, the quality of the collateral may decline in value or default, these obligations may be subordinate to other classes, values may be volatile, and disputes with the issuer may produce unexpected investment results.

Investments in loans involve special types of risks, including credit risk, interest rate risk, counterparty risk and prepayment risk. Loans may offer a fixed or floating interest rate, generally below investment grade and may be unrated. Loans can be difficult to value accurately and may be more susceptible to liquidity risk than other fixed-income securities. The value of the loan’s collateral may be insufficient to cover the borrowers obligations should the borrower fail to make payments or become insolvent.

The Fund’s income may decline when interest rates fall if it holds a significant portion of short duration securities and/or securities with floating or variable interest rates. If the Fund invests in lower yielding bonds, as the bond’s portfolio mature; the Fund will need to purchase additional bonds, thereby reducing its income.

The values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods.

The investment techniques and risk analysis used by the portfolio managers may not produce the desired results.

Morningstar

Source: ©2026 Morningstar Inc. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers. It may not be copied or distributed and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Open-end mutual funds and exchange-traded funds are considered a single population for comparison purposes. For factsheets that display Morningstar Star Ratings; Ratings are calculated for funds with at least a three year history. The overall rating is derived from a weighted average of three-, five- and 10- year rating metrics, as applicable, excluding sales charges and including fees and expenses. Had fees not been waived and/or expenses reimbursed currently or in the past, the Morningstar rating would have been lower. Ratings are as of the most recent quarter end and are subject to change every month. The top 10% of fund in a category receive five stars, the next 22.5% four stars, the next 35% three stars, the next 22.5% two stars and the bottom 10% one star. Ratings for other share classes may differ due to different performance characteristics.

Hyperscalers are large tech-native businesses with deep cloud computing resources.

Duration is a measure of the sensitivity of the price (the value of principal) of a fixed income investment to a change in interest rates. Duration is expressed as a number of years.

Yield to worst is the measure of the lowest possible yield that can be received on a bond that fully operates within the terms of its contract without defaulting.

Bloomberg US Corporate Index is an unmanaged index considered representative of the fixed-rate taxable corporate bond market.

Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the Fund call 800-983-0903 or visit invesco.com for the prospectus/summary prospectus.

Invesco Advisers, Inc. and Invesco Managed Accounts LLC are investment advisers for separately managed accounts (SMA); they provide investment advisory services to individual and institutional client and do not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco's retail products and private placements. Each of these entities is an indirect, wholly owned subsidiary of Invesco Ltd.


Invesco is not affiliated with Citywire.

NA5642420
citywire logo

Cookies

Privacy

Terms