Standard & Poor’s (S&P) has given Mark Nash’s Invesco Bond fund a A/V4 rating but expressed concern about the consistency of the portfolio’s performance.
In its latest review on the Dublin-domiciled fund, S&P notes that the portfolio outperformed the Barclays Capital Global Aggregate benchmark by 42 basis points during 2011.
The report says: “Since our last review, Invesco has sought to make its process less rigid, giving portfolio managers more freedom when positioning the portfolio.
“Nash has added value through his independent positioning in 2011.”
S&P attributes the fund’s performance last year to its duration within Europe and a yield curve flattener in the US and Europe, while currency – especially the outcome of a long emerging markets position against the dollar – was the main detractor.
However, the ratings agency adds that the fund has returned 12.4% over three years, underperforming the 18.7% seen in the S&P peer median and the 21.5% delivered by the index.
“Performance has been mixed over recent years,” the report continues. “While we have seen enough improvement to assign the fund an S&P A/V4 rating, we continue to remain cautious.”