How can you diversify your investment journey with our alternative map of the world?
Alternative investments offer the opportunity to diversify away from traditional asset classes. This means there is the potential for an uncorrelated return profile generated through exposure to investments with differentiated growth drivers.
At Invesco, we take this further and have a global scope to our alternatives offering. Different markets often perform at different times, so we look to explore the world and unearth the best opportunities from developed and emerging markets.
Real estate investors have tended to be domestically focused. But many are now investing across global real estate markets. Large institutional investors and sovereign wealth funds have been at the forefront of the shift to global real estate. This has been driven by the generally stable income component and the potential for diversification, risk reduction, and return enhancement.
Read more about the advantages of a going global when it comes to real estate, and the diversification benefits it can bring for investors.
Within private credit, we also have a global reach with Global, European and US focused senior secured loan strategies.
We believe senior secured loans offer features that may meet the needs of investors. Whether that is diversified income, which is independent of the market environment, low volatility of investment performance compared to traditional asset classes, or historically limited correlation of returns – there is clear scope for diversification.
Although alternatives are attractive for a variety of reasons, they are not all the same. Alternatives are increasing in breadth, but growth in scale and complexity may make this market harder to navigate.
One type of alternative may differ sharply from another in terms of its correlation with other assets, return characteristics, risk factors, and liquidity characteristics. We believe global alternatives are best viewed within an outcome-based framework that measures their ability to deliver objectives such as growth, income, and diversification within an overall portfolio.
So, how can the diversification opportunities of global alternatives play an important role in constructing optimised portfolios? Read the article.
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This document does not form part of any prospectus. It contains general information only and does not take into account individual objectives, taxation position or individual financial needs. It does not constitute a recommendation of the suitability of any investment strategy for a particular investor. Nor does it constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation.
As with all investments, there are associated inherent risks. Please obtain and review all relevant materials carefully before investing.
Many senior loans are illiquid, meaning that the investors may not be able to sell them quickly at a fair price and/or that the redemptions may be delayed due to illiquidity of the senior loans. The market for illiquid securities is more volatile than the market for liquid securities. The market for senior loans could be disrupted in the event of an economic downturn or a substantial increase or decrease in interest rates. Senior loans, like most other debt obligations, are subject to the risk of default.
