Invesco Wholesale Senior Secured Income Fund
The Invesco Wholesale Senior Secured Income Fund invests in Senior Secured Loans to around 350 global companies, many household names, diversified across 20 or more sectors.
The Invesco Wholesale Senior Secured Income Fund invests in the loans of around 350 global companies, many household names, diversified across 20 or more sectors.
In an elevated interest rate environment, loans are a timely complement to investors’ existing debt investments and income sources. The companies pay a contractual floating-rate income to investors, which is distributed on a monthly basis. And just as the name suggests, the loans are senior in the capital structure to all other debt or equity issued by the company, and they’re secured by the assets of the company – such as inventory, property and plant and equipment.
The investment team of the fund are one of the world’s largest managers of Senior Secured Loans in a highly liquid market approaching US $2 trillion. The team’s network and prominence in the market give them access to the most attractive loans from both private and publicly listed issuers.
Fund goals
To provide a high level of stable monthly income, preserve capital and achieve a gross return of cash +4% p.a. over rolling three year periods.
The Fund invests into the underlying Invesco Zodiac Fund whose investment horizon looks across a full credit cycle with the view that returns are maximised over the longer run for all private, credit-sensitive assets such as Senior Secured Loans.
Senior Secured Loans offer investors: stable current income streams, priority repayment, duration risk mitigation via a floating interest rate, high levels of transparency, low correlation with other asset classes, and may hedge inflation and mitigate volatility in rising interest rate environments. Senior Secured Loans are also typically secured by a lien against the assets of the borrower.
Unlike traditional bonds, Senior Secured Loans are structured with floating rates, which means their coupons regularly adjust to changes in the base rate and therefore duration is low.
The Underlying Fund is managed by Invesco Senior Secured Management Inc., one of the world’s largest institutional managers of Senior Secured Loans. The senior members of the Senior Secured Loans team has a blend of deep experience and strong stability, having worked together for many years. The investment process is active, fundamental and highly disciplined. The portfolio is biased to more liquid positions in the upper mid-to-large cap segment of the Senior Secured Loans market. The team’s investment style is driven by:
- individual bottom-up credit selection; and
- top-down macro risk positioning tied to broader economic trends.
The Fund's senior secured loan investment process is predicated on a disciplined, fundamental approach to investing. The bias is toward more liquid positions in the upper mid-to-large cap segment of the senior secured loans market. The team’s investment style is driven by 1) individual bottom-up credit selection, and 2) top-down macro risk positioning tied to broader economic trends.
Invesco's analysts are structured by industry specialty and have a deep understanding of the companies that operate in the senior secured loan space. In addition to credit selection, Invesco’s investment process is predicated on active portfolio management. The investment process is designed to optimise the portfolio return while minimising downside credit risk by investing through a full credit cycle.
Over the years the senior secured loans process has been enhanced by the introduction of a suite of quantitative tools to provide a consistent foundation for risk assessment across sectors and issue types.
Investment process detail
As mentioned, the senior secured loans investment process brings together bottom-up credit selection with top-down macro risk positioning. Bottom-up input belongs to specialised credit analysts while top-down input is provided by an experienced Investment Committee comprising Invesco’s most seasoned and senior secured loan investment professionals. The investment process is designed to optimise portfolio return while minimising downside credit risk by investing through a full credit cycle.
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Investments can go up and down. Past returns are not a reliable indicator of future returns. Future returns may be affected by a range of factors including economic and market influences.
Invesco does not guarantee that the fund will achieve its objective or performance targets.
This is general information only and does not take into account your individual objectives, taxation position, financial situation or needs. You should assess whether the information is appropriate for you and consider obtaining independent taxation, legal, financial or other professional advice before making an investment decision. A Product Disclosure Statement (PDS) and Target Market Determination for any Invesco fund referred to here is available from Invesco. You should read the PDS and consider whether a fund is appropriate for you before making a decision to invest.
Invesco is authorised under its licence to provide financial product advice, deal in financial products and operate registered managed investment schemes. If you invest in an Invesco Fund, Invesco may receive fees in relation to that investment. Details are in the PDS. Invesco’s employees and directors do not receive commissions but are remunerated on a salary basis. Neither Invesco nor any related corporation has any relationship with other product issuers that could influence us in providing the information contained in this document.
Investments in the Invesco funds are subject to investment risks including possible delays in repayment and loss of income and principal invested. Neither Invesco nor any other member of the Invesco Ltd Group guarantee the return of capital, distribution of income, or the performance of any of the Funds. Any investments in the Funds do not represent deposits in, or other liabilities of, any other member of the Invesco Ltd Group.
While any Invesco fund referred to in this document may consider Environmental, Social and Governance (ESG) aspects to better manage risks and improve returns, it is not bound by any specific ESG criteria. The fund may invest across the ESG spectrum and will not necessarily exclude companies with controversial business areas – such as those with significant revenues from coal, fossil fuel, nuclear power, weapons and tobacco – from the investable universe. Information used to evaluate ESG factors may not be readily available, complete or accurate. ESG factors may vary across types of investments and issuers, and not every ESG factor may be identified or evaluated. There is no guarantee that the evaluation of ESG considerations will be additive to the fund’s performance.
Invesco has taken all due care in the preparation of this information. To the maximum extent permitted by law, Invesco, its related bodies corporate, directors or employees are not liable and take no responsibility for the accuracy or completeness of this information and disclaim all liability for any loss or damage of any kind (whether foreseeable or not) that may arise from any person acting on any statements contained in this information.
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Invesco Ltd is a leading independent global investment firm solely focused on investment management. We direct all our intellectual capital, global strength and operational stability towards helping investors achieve their long-term financial objectives.
Headquartered in Atlanta, USA, the firm has assets under management of approximately A$2.41 trillion (as at 31 December 2023) and is listed on the New York Stock Exchange (NYSE Code IVZ). Invesco has solid financials and a strong balance sheet. Founded in 1935, today Invesco Ltd has an on-the-ground presence in more than 20 countries, serving clients in more than 120 countries. Invesco Ltd has 8,400+ employees worldwide including more than 850 investment professionals. Invesco’s clients benefit from a commitment to investment excellence, a strong depth of investment capabilities, and organisational strength.
Invesco’s specialised active offerings for Australian investors include Australian equities (quantitative; long-only, smaller companies); fixed income and private credit (senior secured loans, global aggregate, direct lending, distressed credit); global equities (quantitative, fundamental high conviction); and alternatives (direct property – equity and debt, balanced risk). Invesco also manages global and Australian passive index mandates for Australian investors.
Scott Baskind is Head of Global Private Credit and Chief Investment Officer of Invesco’s Global Private Credit platform, which includes broadly syndicated loans, collateralised loan obligations, direct lending, distressed credit, and opportunistic credit. He is the head of the investment committees across the platform and serves as a Senior Portfolio Manager for several funds.
Scott joined Invesco Senior Secured Management, Inc. in 1999 as a credit analyst and has taken on progressively more senior roles, including his current position in 2014. During his tenure at Invesco, he has served as a portfolio manager, head of loan trading, and co-CIO. Mr. Baskind began his career as a financial analyst at the Bureau of Fiscal Management, City of New York. His senior loan career dates back to the mid-1990s as a commercial lending analyst with NatWest Markets and later as an associate in the leveraged finance and private equity group of Gleacher NatWest.
Scott earned a BS degree in business administration, with majors in finance and management information systems, from the University at Albany, State University of New York. He currently serves as a vice chairman and treasurer for the Loan Syndications and Trading Association (LSTA).
Kevin is a senior portfolio manager in Invesco's Private Credit Group and a member of the Investment Committee. He is responsible for credit research and portfolio management with focus on institutional funds.
Before joining Invesco, Kevin was an executive director and co-head of the Senior Loan Group at Morgan Stanley, which he joined in 1998. Previously, Kevin worked at the Industrial Bank of Japan in roles including vice president and senior credit officer. Prior to that, Kevin was a senior auditor with KPMG.
He received a Bachelor of Science in Business Administration in Accounting from Georgetown University and a Master of Business Administration in Finance from the Wharton School of the University of Pennsylvania. He is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants.
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