Solutions & Multi-Asset
Capabilities - Solutions & Multi-Asset
Invesco provides multi-asset strategies through asset allocation across equity, fixed income, currency, commodities and alternative investment markets. We offer a variety of balanced and multi-asset strategies, including Balanced, Global Target Returns, Risk Parity and Solutions, which are brought together by a global team of experienced professionals, through sharing insights on various asset classes, regions, sectors, industries, currencies and securities.
As of June 30, 2018, Invesco manages over US$57.4 billion of balanced assets globally. Teams of dedicated on-the-ground investment professionals provide investment excellence to institutional clients.
Balanced (Global / Asia)
Invesco offers a variety of approaches toward balanced investment strategies. Our Global and Asia Balanced solutions use our existing product line as underlying investments, structuring them with strategic allocation to meet various investment objectives. The strategies seek to capture potential capital gains from both yield and growth and consider investments across the market capitalization spectrum as long as they meet the liquidity requirement.
For the Asia Balanced capability, we seek to invest in high dividend yield stocks and quality coupon paying bonds in Asia Pacific ex-Japan, targeting both yield and growth. We adjust the weighting in stocks and bonds according to the relative attractiveness between equity dividend yields and bond yields.
The Invesco edge:
- Disciplined decision-making based on a consistent framework.
- Flexible, dynamic asset allocation with weightings actively adjusted to attain an optimal mix for maximizing total return while reducing volatility.
- A decade of proven track record of favorable risk-adjusted total return.
- Dedicated risk and quantitative research team supports portfolio optimization and volatility management.
Global Targeted Returns
Invesco Global Targeted Returns strategy is an actively managed multi-asset strategy that seeks to produce a single, diversified portfolio that blends together good investment ideas in pursuit of a clearly defined target outcome. The investment team seeks a positive total return over the long term by targeting a gross annual return of 5% above US three-month Treasuries over a rolling three-year period, with less than half the volatility of global equities, as represented by the MSCI World Index, over the same rolling three-year period. There is no guarantee this target will be achieved.
The team has absolute freedom to invest in any idea, anywhere in the world, with no asset class constraints. Ideas are generated from discussion around investment themes, fundamental economic analysis and valuation/qualitative modeling and may result in investments across a wide array of asset classes, geographies, sectors and currencies.
The Invesco edge:
- Absolute return objective. Lower correlation with traditional market indices may help achieve positive returns independent of the direction of the markets.
- Risk management and diversification. Combining investment ideas may help reduce overall volatility relative to a direct investment into a single asset class.
- Knowledge and experience. The investment team has more than 60 years of investment experience between them, including a combined total of 15 years’ experience in managing targeted absolute return strategies.
Invesco Balanced-Risk Allocation strategy is a risk parity strategy that seeks to generate returns by investing in equity, bond and commodity markets using a long-only, risk-balanced investment process. Specifically, the team selects the appropriate assets for the strategy, allocates them based on their proprietary risk management techniques, and then applies a tactical allocation process to improve expected returns. The result is a strategy that strives to achieve equity-like returns with bond-like risk over time.
The Invesco edge:
- Seeks strong performance in differing economic and inflationary environments.
- Limited and short-lived drawdowns relative to the expected returns of the strategy.
- Meaningful excess return over time from active positioning.
- High liquidity and pricing transparency in the assets used with no meaningful counterparty risk.
The Invesco Solutions team is a dedicated resource focused on building and managing multi-asset strategies for clients around the world. They use their extensive asset allocation expertise to combine Invesco’s investment capabilities and create solutions tailored for our clients. The team helps fill a need that is becoming increasingly large across the industry — providing multi-asset investment solutions that are needs-based, outcome-oriented and client-centric. Given the depth and breadth of Invesco’s investment strategies, we are one of the few firms that can effectively deploy a dedicated asset allocation team to create tailored solutions that combine our capabilities for clients. Other firms are actively creating/investigating solutions-type groups, but there is no dominant leader in the space. This presents a great opportunity for the Invesco Solutions team to build inroads with clients. The team currently manages fund of funds, fund of ETFs and separate accounts in the US and Canada.
The Invesco edge:
- Needs-based, outcome-oriented and client-centric: The team has the flexibility to begin the investment process with client needs, and to create custom solutions designed to target the client’s preferred outcome
- Fund of funds/ETFs: Investment solutions will allocate primarily among Invesco’s strategies across a wide range of asset classes and vehicles.
The listed investment capabilities and vehicles are not available in all jurisdictions in Asia Pacific. Additionally, not all investors are eligible in each investment vehicle. For more information, please contact our local Invesco office.