Seeking high investment income with stability of principal
Dynamic real estate markets require a proven and fundamentally sound investment process, one focused on achieving a competitive dividend and total return while striving to maintain the stability of the portfolio's book value.
Invesco Mortgage Capital invests primarily in mortgage-backed securities guaranteed by U.S. Government Sponsored Entities (GSE’s) Fannie Mae and Freddie Mac, collectively “Agency MBS”. This includes a diversified mix of securities backed by residential and commercial properties and loans with a broad range of coupons, balances, geographic locations and unique borrower characteristics. Our team, with over 25 years of experience in the Agency MBS market, has the knowledge and leading-edge mortgage prepayment and valuation modelling capabilities to quantify return potential and make relative value assessments across the sector. Additionally, we employ a comprehensive risk management framework that runs throughout the investment process.
The IVR portfolio results from a series of disciplined and defined process stages, including:
- Macroeconomic and capital markets analysis - achieving detailed understanding of forces governing interest rates, the business cycle and other financial conditions
- Mortgage sector analysis - identifying opportunities and trends in agency basis, prepayments, and asset and funding sources
- Formal Investment Committee decision making - establishing asset allocation and risk boundaries and evaluating overall opportunity and portfolio financials
- Transaction management - executing investment decisions through the sourcing of investments, management of liquidity, funding decisions and the active trading of portfolio positions
The result is a portfolio focused on the road ahead. Through its proven investment strategy, IVR seeks to deliver attractive returns with consistent high dividend income and stable book value