Invesco Perpetual launches European equities and bonds fund

Invesco Perpetual today announced the launch of the Invesco Perpetual European High Income Fund, a new fund providing a flexible combination of European equities and bonds.

Building on the strong franchise in income based products - equity income, fixed income and managed income - and the proven investment expertise within Invesco Perpetual, the fund seeks to achieve a high level of income and long term capital growth by investing in continental European equities and bonds. At launch the fund has a target yield of 6 per cent.

The fund is managed by award winning Paul Causer and Paul Read, co-heads of fixed income at Invesco Perpetual, and European equity income specialist, Katharina Hoyland, manager of the Invesco Perpetual European Equity Income Fund.

Ian Trevers, Head of Distribution at Invesco Perpetual said: "In the same way that investors will look to diversify their investments by asset class, many will consider diversifying their income stream. We believe that equity and fixed income opportunities to be found in Europe provide a compelling option for investors to seek a fund whose flexible exposure can take benefit from the best of both worlds and provide them with good long term returns.

Drawing upon the wealth of expertise and experience within our established income franchise, we felt well positioned to launch a fund which will provide investors with further ways to access some of the best fund managers in the industry."

Paul Read, co-head of fixed income at Invesco Perpetual said: "We launch this fund in exciting times. While conditions since last summer have undoubtedly presented a challenge, the sharp and indiscriminate widening of credit spreads has left credit markets in a position in which they are now beginning to offer us compelling value. The greater differentiation between the pricing of different credit risks, which we are now experiencing, is something we welcome. I believe that we have a great opportunity to add yield to portfolios, providing a strong income flow, and from current levels, capital growth over the long term."

Katharina Hoyland, European equities fund manager said: "Continental Europe is an attractive hunting ground for equity income investors. Companies there now offer dividend yields and payout ratios approaching those traditionally found in the UK market. At the same time, Europe provides a diversified range of investment opportunities at interesting valuations."