Our Invesco Quantitative Strategies (IQS) team uses cutting edge technologies and data driven insights to find the latest investment opportunities for clients.
We manage US$40B+ and customise strategies to our individual client needs. 1
Deep and experienced team of 50 investment professionals. 1
We have been managing systematic equities for more than 40 years. 1
Invesco’s Quantitative Strategies team combines global expertise with a collaborative approach to deliver systematic equity solutions. With decades of experience and advanced research capabilities, we focus on innovative portfolio construction and multi-factor strategies designed to help clients achieve consistent, risk-adjusted outcomes.
The idea of systematic or quantitative investing comes from the insight that emotions can hinder success in investing. Systematic strategies look for evidence about certain characteristics of securities which explain part of their risk or returns, so-called factors.
In a systematic approach, investment portfolios are constructed by analysing a big variety of data to understand economic and company trends.
Data can come from fundamental data on companies such as balance sheet items, price signals or alternative data sources such as credit card data, NLP analysis of earnings calls or even the coverage of analysts.
These insights can be used to construct portfolios based on client needs and risk profiles in both active mutual funds and ETFs.
A factor is a quantifiable characteristic of a stock. A multi-factor investment approach invests in a group of stocks with similar characteristics. For example, this could be low P/E ratios, low volatility, high dividend yields or low market capitalisation.
Our team focuses on the factors - value, momentum and quality. In the value factor, we examine stocks are examined that have attractive valuations. Momentum looks at the price and or earnings dynamics of a stock. In the quality factor, we examine the balance sheet strength, management and profitability of a company.
The importance of portfolio construction is often underestimated even by experienced quantitative investors. People tend to focus on the data (the machine of your racing car) but this does not help if that car has no wheels. Portfolio construction is similar: our portfolio construction is designed to transfer as much of our research insights into the portfolios while focussing on strict risk controls and a state-of-the-art management of transaction costs.
Our investment process is highly flexible when it comes to tailoring to our investors need. A particular area of customisation is ESG integration. In addition to ESG expertise and an ability to handle huge amounts of data, ESG integration also ultimately comes down to portfolio construction.
We have developed a particularly smart two-step process to integrate ESG in a most transparent way. It allows for disentangling of ESG and return factors, helps ESG risk budgeting and enables precise attribution analysis. We integrate ESG in both a variety of standard funds as well as in segregated accounts with particular customisation.
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With decades of experience and a global investment platform, we offer you a comprehensive and evolving range of active and passive equity investment solutions.
Our exchange-traded funds (ETFs) provide you with access to a wide range of global equity markets, designed to track the performance of leading stock indices.
Learn more about our actively managed equities that span regions and styles.
