Poor returns from fixed interest

CONFERENCE

invesco perpetual favours equities as bond issuance drops and prices are generally on the rise

Invesco Perpetual is favouring equities and lower grade bonds in its income portfolios. The flagship investment grade Corporate Bond fund has almost 50% in BBB paper, up from just under 30% at the end of December 2005. During the same period, its exposure to AAA has fallen from about 20% to under 5%. In Neil Woodford's Monthly Income Plus fund, which can hold up to 20% in equities, the equity exposure is almost at maximum. Since the end of 2005, it has built up its exposure to B-rated bonds from 26% to 41%. Lewis Aubrey-Johnson, the product manager at Invesco Perpetual, said the backdrop...