Fund to watch: Invesco Perpetual Tactical Bond

When you're investing in funds it is comforting to know that your money is being looked after by experienced managers who have lived - and worked - through various economic cycles.

Paul Causer and Paul Read, the co-managers of the Invesco Perpetual Tactical Bond fund, are seasoned professionals, having both been in the industry for around three decades.

The aim of their fund, which celebrates its fifth anniversary early next year, is to achieve a high level of return, through a combination of income and capital growth, over the medium to long term.

It pledges to do so through a flexible allocation to corporate and government debt securities, transferable securities, collective investment schemes, financial derivative instruments and cash.

The managers believe that investors are being better rewarded for credit (default) risk than interest rate risk.

Over the past few months, they have embraced the fund's flexibility by taking up a relatively defensive position with holdings in government bonds, cash and short-dated securities.

The largest weightings in the fund (as far as credit ratings are concerned) is BB with 26.37% and AAA with 22.77%, according to the most recent fund factsheet.

BBB holdings account for 14.91% of the portfolio, while there is 12.5% in AA. Both B- and CCC-rated positions each have an allocation of less than 10%. Cash is worth 16.35%.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.