Whether you are seeking additional diversification, sources of income, greater return potential or a reduction in overall volatility, Invesco's expertise in alternatives can help institutional clients identify the right investment strategies for their portfolio objectives.
|Bank Loans||Bank loans' floating rates make them an attractive source of yield to consider in a rising rate environment. They also have historically low correlations to traditional bonds, making them a potential diversifier for a fixed income allocation.|
|Commodities||Commodities have historically outperformed in inflationary environments. Also, they can add diversification benefits to portfolios due to their historically low correlations to both equities and bonds.|
|Currency||Currencies can provide diversification to a portfolio. Currency returns have historically had low correlation to stock and bond returns, and may help mitigate portfolio volatility.|
|Diversified Alternatives||Diversified alternatives strategies typically target equity-like returns with significantly lower volatility. They provide exposure to multiple alternatives in a single investment.|
|Equity Market Neutral||Equity market neutral strategies use offsetting long and short stock positions in an attempt to limit non-stock-specific risk. They seek to provide positive returns above cash, regardless of market environment, and typically with lower volatility than the broad market.|
|Global Macro||Global macro strategies base their investment decisions on macro views of various markets around the world. They may take long and short positions within and across such asset classes as equities, fixed income and currencies. These strategies seek to provide consistent returns in all market environments. They target equity-like returns with lower volatility.|
|Hedged Equity||Hedged equity strategies may use derivative instruments or other investment techniques in an effort to control volatility or protect against losses. They seek to reduce an investor's exposure to volatility while also enhancing returns.|
|Infrastructure and MLPs||Infrastructure strategies can provide diversification as well as a stable income stream and natural hedge against inflation as revenue is adjusted. Because MLPs must distribute most of their cash on a quarterly basis, they may offer high income potential while diversifying equity portfolios.|
|Long/Short Equity||Long/short equity strategies seek to mitigate portfolio volatility and provide protection against downside risk. They can also provide diversification.|
|Private Equity||Private equity strategies offer the potential for above-average returns, low long-term correlations with other asset classes and lower volatility.|
|Real Estate||Real estate can provide diversification to a portfolio, with low correlation to other major asset classes as well as global property markets that have relatively low correlations with each other. Real estate can offer yields that have low correlation to corporate and government bonds. This asset class may also offer inflation-hedging characteristics.|
|Risk-Balanced||Also known as risk parity strategies, these portfolios are constructed so that each asset contributes a relatively equal amount of risk to the strategic allocation of the portfolio. These portfolios may also include a tactical overlay that allows managers to opportunistically adjust the strategic allocation. This approach seeks to limit the effect that one underperforming asset may have on overall strategy performance. The goal is to mitigate portfolio volatility and protect against downside risk.|
|Stressed and Distressed Credit||Opportunistic credit platform that focuses primarily on stressed and distressed credit with a specific preference for small capitalization and middle market companies. Investment style primarily focuses on the purchase of private debt at a discount to par while targeting mid- to high-teens gross returns. For more information, contact the Invesco WLR Credit Partners (IWCP) investment team.|
About risk and other important information
This information is provided for informational purposes only and is not to be construed as investment advice or a recommendation of a particular strategy or product. Nor should it be construed as an offer to buy or sell any financial instruments. As with all investments there are associated inherent risks. Please obtain and review all financial material carefully before investing. Not all strategies or vehicles are available to all invesors or on all platforms. Contact your Invesco representative for more information.