Invesco Asset Management has stepped up its efforts to bridge the yield gap by launching a second Europe-focused loans fund for Citywire + rated Kevin Egan.

Fund selector favourite Egan already oversees three funds in the floating rate notes sector, which includes the Invesco European Senior Loan fund.

The firm has now seen fit to hand Egan and co-manager Michael Craig a second Luxembourg-domiciled fund, the Invesco European Senior Loan Select fund. This approach was formally unveiled in July 2017.

It differs from the existing fund in its wider remit of available investments, as it can invest in adjustable rate senior loans, collateralised loans obligations, second lien loans, mezzanine debt and credit derivatives, among other options.

Egan has seen considerable inflows into his US Senior Loan fund, which added €2.59 billion over the first quarter of 2017, according to Citywire analysis. He currently manages around a third of the collective market share of the floating rate notes bond sector.

In a statement to Citywire Selector, a spokesman for Invesco said: ‘There has been growing global demand for European senior secured loans as the asset class has matured. Investors are attracted to the high credit spreads and the diversification benefits of investing in the European market.’

In terms of performance, Egan sits ninth out of 63 floating rate notes bond managers on a five-year absolute basis. Over the period to the end of August 2017, he has returned 25.7% against a 20.1% return by the average manager in the sector.