Potential stock market volatility, subdued global growth and low interest rates have created challenges for investors hoping to meet target liabilities and funding requirements. Sourcing return opportunities while limiting the potential for losses has seen a growing demand for multi asset strategies.
We believe our unconstrained, ideas-based approach offers genuine diversification, which helps spread the overall risk and provides the potential for positive long-term returns.
Our approach aims to contribute to portfolio returns through time, regardless of the market environment.
We can invest in any investment idea, anywhere in the world. What matters is the impact each idea has on the portfolio’s overall risk and return.
We aim to construct a well balanced and highly diversified portfolio, which shows low levels of correlation with all the major asset classes.
The strategy aims to achieve a positive total return in all market conditions over a rolling three-year period. Specifically, the strategy targets a gross return of 5% per annum above UK 3-month LIBOR (or an equivalent reference rate) and aims to achieve this with less than half the volatility of global equities, over the same rolling three-year period. There is no guarantee that the strategy will achieve a positive return or its target and an investor may not get back the full amount invested.
We take a conviction-led approach to sourcing good, long-term thematic investment ideas, using both traditional asset types and derivatives before applying robust risk management to blend these ideas into a truly diversified portfolio, with a clearly defined return and volatility target.
The strategy can have from five up to around 50 diversified investment ideas (typically 20 to 30) accessed through different asset types across the globe.
Every idea in the strategy must pass the team’s rigorous and repeatable three-step investment process, which has risk management embedded:
Invesco has a long history of developing client-driven investment solutions and is synonymous with fundamental, research-driven investing.
Our Henley-based Multi Asset investment team has extensive experience and a proven capability in developing and implementing risk-managed portfolios. It is able to supplement this with Invesco’s rich seam of investment ideas.
The investment team benefits from Invesco’s investment culture of idea sharing, challenge and debate, having access to more than 750 Invesco investment professionals worldwide. Having access to this extensive global network of fund managers and asset class specialists provides the team with a wide range of insights to help with their idea generation process.
Led by David Millar in Henley, Invesco’s 15-strong Multi Asset investment team has extensive experience and a proven capability in developing and implementing risk-managed portfolios, with a focus on fundamental, research-driven investing.
The five fund managers of the Global Targeted Returns strategy have over 120 years of investment expertise between them and a combined total of over 45 years delivering targeted absolute returns. This seasoned team has expertise across the actuarial, economic, fixed income, risk management and multi asset spectrum and enjoys multi-disciplined support from the broader Invesco team.
Three years of ideas for income
When we launched the Invesco Global Targeted Income Fund (UK) three years ago, our goal was simple: to offer our clients a consistent monthly income whilst preserving their capital. Read our review to see how the fund has performed since launch.
Where to look for opportunities when ‘cash is king’
The Multi Asset team frequently risk test their portfolios against a scenario in which ‘cash is king’ with bonds and equities providing no diversification. Fund Manager Dave Jubb underlines why the risks of this becoming reality are higher now than in the last 20 years.
Multi asset – 2020 outlook
Georgina Taylor explains how the Multi Asset team aims to take advantage of opportunities thrown up by anomalies in financial markets in 2020 and beyond.