November’s 2019 Invesco US Senior Loan Fund performance
The G shares of the Invesco US Senior Loan Fund returned 0.51% gross for the month of November, underperforming the 0.55% return of the Credit Suisse Leveraged Loan Index (the Index) by 4 basis points (bps). Year-to-date, the Fund has returned 6.70%, which is +24bps ahead of the Index.*
We are happy to provide you below some insights on the performance of the Invesco US Senior Loan Fund for November 2019.
The biggest contributor to relative underperformance was the Fund’s overweight (+161bps) in the Energy sector. While this overweight was reduced by 80bps during the month and oil prices were up by almost $6 a barrel from their October lows, the Energy sector continued to lag the benchmark (-1.95%) and subtracted -8bps from relative performance in November. Among the larger movers were Seadrill (-10bps), McDermott Technology (-7bps), and California Resources (-2bps).
Offsetting this, in part, was credit selection as several credits that had been oversold, in our view,reported strong 3Q results and traded up on the news. Among these were ShopDirect (+3bps), Petco(+3bps), and Commscope (+3bps). We are overweight each of these credits
* Source: Invesco, as of November 30st, 2019. Fund returns stated are total returns in USD.
The standardised rolling 12 months performance of the fund from 31.10.14-31.10.15 was -0.38, 31.10.15-31.10.16 was 6.64, 31.10.16-31.10.17 was 5.00%, 31.10.17-31.10.18 was 4.21% and from 31.10.18-31.10.19 was 2.00%. The standardised rolling 12 months performance of the index from 31.10.14-31.10.15 was -0.81, 31.10.15-31.10.16 was 6.30, 31.10.16-31.10.17 was 5.25%, 31.10.17-31.10.18 was 4.89% and from 31.10.18-31.10.19 was 2.61%.
**Past performance is not a guide to future returns. A-Acc gross income re-invested to November 30st 2019 unless otherwise stated. All performance data is in USD. The performance shown does not take account of the commissions and costs incurred on the issue and redemption of units. Reference index: Credit Suisse Leveraged Loan Index
disclaimer About risk 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. The fund is particularly dependent on the analytical abilities of its investment manager on senior loans. Many senior loans are illiquid, meaning that the investors may not be able to sell them quickly at a fair price and/or that the redemptions may be delayed due to illiquidity of the senior loans. The market for illiquid securities is more volatile than the market for liquid securities. The market for senior loans could be disrupted in the event of an economic downturn or a substantial increase or decrease in interest rates. Senior loans, like most other debt obligations, are subject to the risk of default. For more important information on risks associated with this fund, please see the “Risk Factor” section of the relevant Appendix of the Prospectus. Important Information This article is intended for professional investors in Austria, Germany, Italy, Spain, Luxembourg and UK only as well as qualified investors in Switzerland. This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities. All data provided by Invesco unless otherwise noted. All data is US dollar and as of November 30th, 2019, unless otherwise noted. By accepting this document, you consent to communicate with us in English, unless you inform us otherwise. 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