Avenue Capital Group Comments on Action by Invesco
NEW YORK, July 22, 2011 /PRNewswire/ -- Avenue Capital Group today provided the following comment regarding the action announced by Invesco on the topic of the Invesco Van Kampen Dynamic Credit Opportunities Fund (VTA):
Avenue Capital manages $380 million of assets within a $1.2 billion portfolio in the Invesco Van Kampen Dynamic Credit Opportunities Fund. The portion of the portfolio managed by Avenue has outperformed the portion of the portfolio managed by Invesco and its predecessor from inception to date. Furthermore, the portion of the portfolio managed by Avenue has outperformed both the relevant high yield and leveraged loan indices from inception to date.
Avenue noted that, although Invesco stated in its announcement today that there will be no change in the management fee paid to Invesco, the portion which Invesco paid to Avenue for its sub-advisory services will now be 100% retained by Invesco.
With 20 investment professionals with approximately 248 years of relevant experience, Avenue Capital has one of the largest and most experienced teams dedicated exclusively to the European credit markets.
Avenue actively manages a focused portfolio across multiple asset classes to generate alpha for Fund shareholders – as opposed to buying a portfolio of several hundred names with minimal turnover. As fundamental bottoms-up credit investors, we believe Avenue is uniquely positioned to take advantage of complicated credit investment situations on behalf of the Fund's shareholders.
We are disappointed that Invesco and the Fund's Board of Directors have terminated the sub-advisory agreement with Avenue Europe International Management, L.P.
About Avenue Capital Group
Avenue Capital Group is a global investment firm focused on undervalued opportunities in the private and public debt, equity and real estate in the U.S., Asia and Europe. The firm is headquartered in New York, with offices in London, Luxembourg and Munich, and eight offices throughout Asia. As of May 31, 2011, Avenue oversees approximately $13 billion of assets under management, including approximately $3 billion in assets allocated to the Avenue Europe Strategy, on behalf of a sophisticated global base of institutional investors, the majority of which is pension funds, and also includes family offices, foundations, insurance companies and sovereign wealth funds. Avenue was founded in 1995 and draws on the skills and experience of approximately 300 employees worldwide.
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SOURCE Avenue Capital Group