MicroStockHub/iStock via Getty Images Manager perspective and outlook Structured credit securities and Agency MBS outperformed Treasuries and investment-grade corporate bonds this quarter. Portfolio positioning During the quarter, we reduced the fund's allocation to non-Agency residential mortgage-backed securities (RMBS) and increased exposure to asset-backed securities (ABS) and US Treasuries. P...
MicroStockHub/iStock via Getty Images Manager perspective and outlook Structured credit securities and Agency MBS outperformed Treasuries and investment-grade corporate bonds this quarter. Portfolio positioning During the quarter, we reduced the fund's allocation to non-Agency residential mortgage-backed securities (RMBS) and increased exposure to asset-backed securities (ABS) and US Treasuries. Portfolio duration was extended during the quarter, lengthening from 2.6 years to 5.5 years by quarter end. Portfolio characteristics* Average duration (years) 5.48 Weighted average life (years) 4.28 Average weighted coupon (%) 4.25 30-day SEC yield (Class A shares) 4.10 30-day SEC unsubsidized yield (Class A shares) 4.10 Click to enlarge Investment categories (%) Portfolio Index Securitized 94.45 26.15 ABS 31.46 0.45 Non-Agency MBS 24.31 0.00 CMBS 21.02 1.44 Agency MBS 17.66 24.26 Treasuries 7.79 45.63 Equity 1.18 0.00 Municipal 0.44 0.65 Local Authorities 0.44 0.65 Non-US Govt/Agency 0.00 3.03 Local Authorities 0.00 0.07 Non-US Agencies 0.00 0.60 Sovereign 0.00 1.06 Supranational 0.00 1.31 Agencies 0.00 0.57 Corporate 0.00 23.97 Financials 0.00 7.87 Industrial 0.00 13.75 Utility 0.00 2.35 Cash & Cash Equivalent -3.82 0.00 Derivatives & FX -0.05 0.00 Click to enlarge Performance highlights Invesco Income Fund Class A shares at net asset value (NAV) had a positive absolute return for the quarter but underperformed its benchmark, the Bloomberg Intermediate Aggregate Index. Contributors to performance Holdings of commercial mortgage-backed securities (CMBS), ABS and non-Agency RMBS added to relative performance during the quarter. Detractors from performance Agency MBS, corporate credit and the fund's duration and yield curve positioning detracted from relative performance. Both Agency MBS and corporates generated strong absolute returns during the quarter, but the fund had underweight positions in each compared to the benchmark, which appeared to weigh on relative results. Pe...
Hong Kong flag carrier Cathay Pacific Airways has further extended its suspension of all flights to and from the Middle East until the end of May, amid a regional conflict that shows little sign of abating. But the airline will increase flights to Europe starting next month to cater to surging demand. In an announcement on Tuesday, Cathay said flights between Hong Kong and Dubai in the United Arab...
Hong Kong flag carrier Cathay Pacific Airways has further extended its suspension of all flights to and from the Middle East until the end of May, amid a regional conflict that shows little sign of abating. But the airline will increase flights to Europe starting next month to cater to surging demand. In an announcement on Tuesday, Cathay said flights between Hong Kong and Dubai in the United Arab Emirates, as well as between the city and Riyadh in Saudi Arabia, would remain suspended until the...