Portfolio Strategies

Factor investing: Thinking outside the style box

At Invesco, our high-conviction approach to investing goes beyond the limitations of traditional market benchmarks. One of the ways we help clients achieve their financial goals is through factor-based investing.

What are factors? Think of them as the characteristics of a stock or bond that can drive long-term returns. Some of the more commonly identified equity factors include value, low volatility, quality and momentum. We believe factors have the potential to drive precise investment and asset allocation decisions. And blending factors can help enhance a portfolio’s diversification.

Invesco has been a leader in factor investing for more than 30 years and currently manages more than $145 billion in assets within factor-based strategies for clients around the world.1

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Smart Beta Portfolio Strategies

ETF Hypothetical Portfolios

Use our PowerShares ETF Strategic Balanced Portfolios as a template for building your own portfolios. These models are constructed based on a client's risk profile:

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Smart Beta Unit Trusts

Let us construct a portfolio for you: Invesco Unit Trusts offers three PowerShares Smart Beta Portfolios that are allocated among various smart beta ETFs.

  • Income
  • Growth and Income
  • Growth

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PowerShares Smart Beta Research Center

Education and implementation ideas from the experts at PowerShares by Invesco.

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Consider the Alternatives

Alternatives span a diverse set of typically noncorrelated asset classes that may be used to help construct a more diversified portfolio. To determine how various types of alternatives may be most effectively used, Invesco offers a variety of strategies that seek to achieve five key investment objectives:

  • Inflation Hedge
  • Principal Preservation
  • Portfolio Diversification
  • Equity Diversification
  • Fixed Income Diversification

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Welcome to the Age of Income

Create your own investment mix by selecting income strategies from the income finder. Then use the personalized report with your clients.

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1 Source: Invesco, all data as of Dec. 31, 2015. Assets under management include private real estate, alternative credit, liquid inflation hedges, hedged and macro strategies, and private equity.

Diversification does not guarantee a profit or eliminate the risk of loss.

Correlation indicates the degree to which two investments have historically moved in the same direction and magnitude. A greater positive correlation (+1.00 maximum) means the two investments have behaved more similarly; a greater negative correlation (1.00 maximum) means the two have performed less similarly.

Beta is a measure of risk representing how a security is expected to respond to general market movements. Smart Beta represents an alternative and selection index based methodology that seeks to outperform a benchmark or reduce portfolio risk, or both. Smart beta funds may underperform cap-weighted benchmarks and increase portfolio risk.