First foray into Bonds - invesco

DeeKie

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So I am thinking of putting about 20k into this Emerging Markets Secure Bond issued by Invesco. However, this is my first bond and I find the whole thing a bit daunting. I would appreciate any views more seasoned posters might have.


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This seems relevant, is morningstar reputable and independent?

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This link is not relevant. What the OP is asking about is not a real bond as the rest of the world knows it but an Irish bond which is really a capital protected investment product.
Off the top of my head you could get about the same return by putting 50% into an etf that tracks emerging markets and the rest in the best term deposit you can find.
You don't get complete downside protection but allowing for higher charges, dividends(not paid by the bond) risk control elements incorporated into the bond which will lower return and interest on the capital on deposit after year one you will get about the same upside return.
Also this bond is priced at Dec 10th prices. Emerging markets have stumbled since so it's possible the index is now lower than the price you will pay in the bond.
What % of your total portfolio is this going to be?
On a personal note I wouldn't be putting 25k into emerging markets now. They have had an enormous run over the last few years. Reversion to the mean and all of that.
Regards
 
http://www.askaboutmoney.com/showthread.php?t=144836

This question came up recently and my response is in the link above

For reference morningstar is a fund research company and award stars to the best performing funds.

Unfortunately the performance awards are virtually useless as a predictor of future performance.

Secondly the link provided was to an invesco perpetual fund based in the UK part of a massive international fund management company with a similar name to the Irish operation promoting a different product.
 
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