We offer a comprehensive range of services, from optimising strategic and tactical asset allocation to building multi-asset portfolios with alternative investments.
We listen to your unique goals, concerns and constraints.
We partner with you to enhance and build your asset allocation.
We offer simplified access to private market assets.
The Solutions team’s mission is to help clients solve simple and complex challenges, harnessing the wide range of capabilities available across Invesco. As part of this, we deliver a comprehensive range of services and solutions. Often clients rely on insights from our proprietary analytics engine, Invesco Vision, and capital market assumptions that cover 180+ asset classes. Other times, they seek customised solutions, aiming to deliver positive investment outcomes.
Learn more about our expertise below.
We work as an extension of your team, developing multi-asset solutions that are tailored to your objectives. These can include:
Portfolio management is becoming increasingly challenging. Markets are growing more complex, technology is advancing, and daily news flow is proliferating, which can create more confusion than clarity. Furthermore, more investors are looking beyond public markets to alternative investments to help meet liabilities and dampen volatility.
To help, we have created a state-of-the-art, proprietary technology solution, Invesco Vision. This is a portfolio research and analytics platform. By identifying risk and return drivers, as well as exposures to an array of factors, Vision identifies optimal investment strategies. Vision can stress-test portfolios and run “what if” scenarios to learn how different variables affect investment outcomes, for interactive, on-the-spot portfolio analysis.
Our experienced investment professionals work as an extension of staff to develop tailored solutions that help investors meet their desired investment outcomes. We combine an outcome-based focus with Vision analytics to develop a wide range of custom solutions, designed around investor goals.
Real world client examples include guidance on strategic and tactical asset allocation, manager selection across public and private markets, index solutions, managing liabilities, regulatory considerations, and engaging in strategic partnerships.
When constructing and optimising portfolios, Invesco Vision helps us consider:
Our capital market assumptions provide long-term estimates for the behaviour of over 170 different asset classes. These are based on a 10-year investment horizon and can help guide your strategic asset allocation.
We focus on expected return, volatility and correlation with other asset classes.
As investors seek to enhance growth, income and diversification, alternative assets have become an increasingly important part of institutional portfolios.
Our alternatives platform simplifies the process of investing in alternatives - providing access to Invesco’s in-house capabilities alongside specialist managers who offer complementary expertise in private credit, private equity and real assets.
Invesco’s Alternatives Platform
CDI solutions focus on sourcing and delivering income to meet liabilities as they fall due. This can be achieved by holding a mix of public and private assets, which deliver a combination of stable income and long-term cashflows. We focus on three key types of strategy:
Dynamic factor allocations aim to achieve better results by anticipating changes in the business cycle.
For more information about our strategies, please provide your details below and we will get back to you.
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We are a global team serving a wide range of clients, from pension funds to insurers. We partner with you to fully understand your goals, harnessing strategies from across Invesco’s active, passive, factor and alternative capabilities.
From robust research and analysis to bespoke investment solutions, our team brings insight and innovation to your portfolio construction process. Our approach starts with a complete understanding of your needs:
Investment professionals
Total assets
Advanced degrees and designations
What is Invesco Investment Solutions? How do you help clients?
Invesco Investment Solutions is an independent multi asset team whose purpose is to help clients get the best out of Invesco. We’re a team of investment practitioners from around the world. And our job is to really understand the client's needs, whether that's fees and liquidity requirements, ESG constraints or regulatory considerations.
We receive a number of tasks. It can be from asking to do portfolio analytics through our proprietary software, Invesco vision, or it can be to design customised solutions. And that can be anything from target risk and target date strategies, dynamic multi-factor solutions, or multi-alternative solutions.
What barriers do clients face when trying to invest in alternatives? How can you help?
The market landscape for alternatives has grown in scale but also in complexity.
So there are new emerging strategies coming to market every day and it can be quite time consuming to understand these asset classes and whether they fit within your portfolio.
Even if you know what you want to invest in, there can be serious implementation considerations. So first of all, you may need significant AUM to be able to invest in the first instance. You also may need internal resources to be able to look at cashflow modelling, monitoring your portfolio and be able to report on performance. So this is where the Solutions team comes in.
We're able to act as an extension of staff and help you navigate these markets through our capital market assumptions. We can also help with implementation – so dealing with onboarding and reporting.
Tell us a bit more about your private markets platform. How does that work?
The alternative solutions platform provides streamlined access to private market capabilities, both at Invesco and through our third-party managers.
Through this open architecture approach, we're able to design diversified private market solutions with a greater choice. And through this, we can reduce AUM requirements and ensure fees are kept to a minimum.
Being a part of the Solutions team, we're able to combine private and public asset classes to produce truly bespoke and diversified alternative solutions, taking into consideration return targets, fee constraints, and every other investment criteria that the client needs.
What kind of private market assets can you access through your platform?
Through our trillion dollar open architecture platform, we have access to a variety of private asset classes across real estate, real assets, private equity, and private credit. The beauty of an open architecture approach is that we have a greater choice, and we're not wedded to one particular investment manager, meaning that we can ensure that our client has a solution that's fit for purpose.
So every potential manager and fund, whether they're Invesco or otherwise, is assessed using a rigorous due diligence process, ensuring that every underlying strategy we select is fit for purpose for our clients.
What kind of clients do you help?
The Solutions team caters to a variety of clients from sovereign wealth funds, central banks, insurers, pensions and private wealth.
Because of our nature, we are very flexible in the way that we implement strategies. So if you're looking for a co-mingled solution, a customised isolation or simply advice, we're here to help. But the main thing is for us to understand exactly what your needs are before offering anything.
Can you walk us through the full client journey, from the moment a client first comes to you?
The first thing we do is truly understand our clients’ objectives. So that's looking at things such as return requirements, liquidity constraints, fee targets, and any ESG considerations. Through that, we take each client's existing portfolio and conduct analysis using Invesco Vision. This is a proprietary analytical software that we use to understand the client's portfolio and help them make investments decisions through our capital market assumptions. We can develop proposals for an asset allocation that we think fits the client's needs.
The second step is manager selection. Through our open architecture platform, we're able to thoroughly assess managers from both Invesco and third-party managers, which leads on to implementation. We're able to be very flexible in the way that we implement our strategies, whether it's through advice or through custom solutions. We can help the client overcome any challenges that they have faced when investing in alternatives.
Tell us about your capital market assumptions. What are the key themes at the moment? Do alternatives look attractive?
Invesco Investment Solutions develops over 170 capital market assumptions.
These are long-term ten-year assumptions that help us construct our strategic asset allocation. In the public space, we're seeing that fixed income capital market assumptions are expected to exceed previous ten-year returns. In equities, we're seeing the reverse. This is due to higher valuations from a Q1 market repricing. In the alternative space, we're seeing higher expected returns due to strong illiquidity premiums.
But we'd say in this current macroeconomic environment, it's better to be a lender than a direct equity holder. This is because of the floating rate nature of private credit strategies. Also, in the equity space, we're seeing that there is a decrease in valuations, but that's offset by an increase in cost of financing, not making it any particularly more attractive. In real estate debt, we're seeing high single digit to low double digit return expectations due to that floating rate nature of these strategies, as well as the fact there are conservative lending standards and modest loan to values.
In the fourth episode in this series, Alternative Thinking, Ella Gillett introduces Invesco Solutions.
She outlines how the team partners with clients to help them access alternatives, before delving into the outlook for real estate, private equity and private debt.
Tactical asset allocation
Welcome to our Tactical Asset Allocation hub. Here you’ll find a selection of the most recent research from Invesco Solutions. Read our latest analysis that covers market strategy and opportunities across various asset classes.
Alternative opportunities Q2 2024
In each new edition, we look at the outlook for private market assets. In particular, we focus on private credit, private equity, real estate, infrastructure and commodities.
Capital market assumptions | Q2 update
Invesco Solutions develops capital market assumptions (CMAs) that provide long-term estimates for the behaviour of major asset classes globally.
Insurance Outlook 2024
2024 should mark the beginning of the end for reforms to Solvency II. Having fired the starting gun in February 2019, almost four years later the Commission, European Parliament and European Council are negotiating the final contours of the reform package.
How can insurers protect against the havoc of inflation?
Investors of all kinds need to protect their portfolios from the damage inflation can inflict – whether over the short term or the longer term. Insurers are no exception in this regard. Could insurers now benefit from investments outside their traditional asset allocations?
Invesco Solutions (IS) is a global independent multi-asset team comprising 70+ professionals based in Europe, the US and Asia. Our assets under advisement total $76 billion.¹
Our purpose is to help clients reduce uncertainties and achieve their investment goals. We focus on combining strategic and tactical asset allocation with manager selection capabilities, delivering outcome-oriented solutions.
We partner with you to fully understand your goals. We then harness strategies across Invesco’s global spectrum of active, passive, factor and alternative investments to address your unique needs.
From robust research and analysis to bespoke investment solutions, our team brings insight and innovation to your portfolio construction process.
We offer advice and solutions across a comprehensive range of asset classes and strategies. Our aim is to help clients get the best from Invesco – a global organisation with over $1.4 trillion in equity, fixed income and alternative assets.²
Clients can access our expertise at many levels, from investment analysis and advice on portfolio optimisation to working together to create fully customised solutions including:
We have developed capital market assumptions (CMAs) that provide long-term estimates for the behaviour of major asset classes globally. The assumptions, which are based on a 10-year investment time horizon, are intended to guide strategic asset allocations.
For each selected asset class, we develop assumptions for expected return, standard deviation of return (volatility), and correlation with other asset classes.
Our capital market assumptions form the basis of our analysis and recommendations. We use these as guidelines when making long-term strategic asset allocation decisions. We are also able to conduct tactical asset allocation based on extensive regime and macro analysis that seeks to capture cyclical opportunities in the current environment.
We use Invesco Vision, our advanced portfolio management research and analytics platform, to help clients make better-informed investment decisions that are aligned with their objectives.
Alternative assets like private equity, private debt and direct real estate have unique characteristics, which means they can offer diversification benefits. They also have the potential to generate more attractive risk-adjusted returns than might typically be found in public market assets.
The movement towards alternatives has accelerated over the last few years, particularly as investors have adapted to lower forecast return assumptions from equities and bonds. This is shown through Invesco’s capital market assumptions, which provide long-term estimates for the behaviour of major asset classes globally.
The alternative investment market is broad, complex and dynamic. It requires extensive analysis, due diligence and monitoring. There are practical considerations to navigate too, such as investment illiquidity. Unless you’re a large institution, there can be challenges gaining access to certain managers.
Invesco’s alternatives platform has been created to help overcome many of these challenges, simplifying the process of investing in alternative assets and bridging the gap between your investment strategy and execution. Alongside Invesco’s in-house capabilities, we have sourced high-quality third-party managers who offer scale, global presence and complementary expertise in private market investments.
Partner with our real estate, Invesco Solutions and private credit teams to help achieve targeted portfolio outcomes.
Select the asset classes you are interested in to receive related insights to your inbox, including our quarterly alternatives newsletter.
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1 Source: Invesco as of 30 June 2023.
2 Source: Invesco as of 31 March 2023.
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
Alternative investment products may involve a higher degree of risk, may engage in leveraging and other speculative investment practices that may increase the risk of investment loss, can be highly illiquid, may not be required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual portfolios, often charge higher fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager. There is often no secondary market for private equity interests, and none is expected to develop. There may be restrictions on transferring interests in such investments.
Views and opinions are based on current market conditions and are subject to change. This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.
EMEA2977300/2023
