At Invesco, we understand that investing is both an art and a science. Experience and relevant information are key to successful investment decision-making. However, much of the information required to make informed decisions just isn't readily available or evident.
This is why Invesco Investment Solutions (IIS) developed Invesco Vision: a decision support system that offers a broad set of capabilities intended to enhance investor proficiencies in portfolio management decision-making.
Judgement and Colloboration, enhanced
Invesco Vision marries the power of machine efficiency and transparency with human judgement and collaboration. It combines analytical and diagnostic capabilities into a single solution that supports better decision-making.
The system is the result of years of research and development by the Invesco Investment Solutions team and was designed specifically around the idea of providing professional investors with the information they need to make better-informed investing decisions. Invesco Vision fosters more productive collaborations with our clients and supports them in more effectively applying their judgment to the portfolios they manage.
Model assets and liabilities
The output of any risk management or portfolio construction exercise is a function of the inputs used. Estimating portfolio asset return, risk, and correlation expectations is central to portfolio and risk analyses. However, investors face many challenges in determining these estimates including:
- Developing consistent return estimates across all portfolio assets
- Developing risk and correlation estimates for alternative/private market assets
- Establishing asset or liability benchmarks that are aligned with client objectives
Invesco Vision substantially simplifies the process of determining the relevant characteristics of assets and liabilities, the most critical component of risk management and portfolio construction.
Having the right tools is critical to achieving desired outcomes.
A broad set of portfolio construction approaches allow investors to develop portfolios that consider their unique preferences for a variety of return and risk trade-offs in achieving specific investment objectives. These approaches include:
- Absolute and relative risk optimisation
- Robust optimisation
- Liability matching (ALM, LDI, and CDI)
- Portfolio constructions with regulatory considerations (Solvency II)
- Return-agnostic optimization
We understand that objectives and preferences can vary widely from one investor to another. Invesco Vision can address the main challenge of portfolio construction, understanding and choosing acceptable risk-and-return trade-offs, with a variety of portfolio optimization methods.