Capabilities

Invesco Solutions

We offer a comprehensive range of services, from optimising strategic and tactical asset allocation to building multi-asset portfolios with alternative investments.

Services at Invesco Solutions

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.

  • Customised solutions

    We work as an extension of your team, developing multi-asset solutions that are tailored to your objectives. These can include:

    • Target-outcome strategies, including target-date and target-risk solutions
    • Multi-alternative solutions via Invesco’s alternatives platform
    • Global tactical asset allocation and factor rotation
    • Cashflow-aware strategies
    • Institutional indexing
    • Derivative overlays
    • Managed volatility strategies
  • Portfolio analytics and advisory services

    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:

    • Absolute vs relative risk
    • Mean-variance optimisation vs robust optimisation
    • Multi-period optimisation
    • Cashflow / liability matching
    • Regulatory concerns, such as Solvency II capital requirements
    • Scenario and factor analysis
  • Capital market assumptions

    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.

    Read our capital market assumptions >

  • Accessing alternatives

    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

    • Diversification: Harness the potential of strategies ranging from senior loans and real estate - to private credit and infrastructure.
    • Streamlined: Simplifying the process of investing in alternative assets, bridging the gap between your investment strategy and execution.
    • Private market access: Our multi-manager platform includes high-quality, third-party managers with low minimum investment requirements and compelling fees.
    • Analysis: Using Invesco Vision, we can understand forecasted risks, returns and correlations between portfolio assets, and integrate alternatives to improve your portfolio’s ability to meet its investment objectives.
    • Flexibility: We can offer advisory services as well as customised and commingled multi-alternative solutions (targeting income or targeting growth), whilst acting as an extension of your team.
    • Reporting: Through the platform you have access to investment and operational monitoring with integrated reporting.
  • Cashflow-driven investing (CDI)

    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:

    • Cashflow-aware: Sourcing investments with a focus on high income and greater certainty of return.
    • Cashflow-matching: Holding high quality assets to maturity to match the expected liability cashflows.
    • Buyout-aware: Holding assets which receive favourable insurance capital treatment, either to mirror an insurance strategy or to support a future insured solution.
  • Tactical asset allocation or factor rotation

    Dynamic factor allocations aim to achieve better results by anticipating changes in the business cycle.

    • Proprietary macro regime framework
      Access our proprietary framework, which provides an intuitive and actionable methodology to tactical factor allocation.
    • Systematic, transparent process
      We employ a transparent, rules-based investment process, which is transferrable across asset classes.
    • Dynamic factor tilting
      We can dynamically tilt factor portfolios to take advantage of changing market environments.

Why Invesco Solutions?

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: 

  • We help support better investment outcomes by delivering insightful and thorough analytics. 
  • By putting analytics into practice, we develop investment approaches specific to your goals. 
  • We work as an extension of your team to engage across functions and implement solutions.

Eplore the latest solutions insights

  • Asset allocation
    Capital%20markets%20assumptions
    Asset allocation

    Capital market assumptions | Q2 update

    By Invesco

    Invesco Solutions develops capital market assumptions (CMAs) that provide long-term estimates for the behaviour of major asset classes globally.

    20 June 2024
  • Solutions
    The%204-Life%20framework:%20Building%20blocks%20for%20creating%20a%20personalised%20retirement%20plan
    Solutions

    The 4-Life framework: Building blocks for creating a personalised retirement plan

    By Georgina Taylor, Kate Dwyer

    The 4-Life framework helps put in place a robust retirement plan that explicitly addresses the risks people are increasingly facing as they seek to take control of their retirement path. Find out more.

    5 April 2024
  • Alternatives
    Alternative%20opportunities%20outlook%20
    Alternatives

    Alternative opportunities: What’s the outlook for private credit, private equity and real assets?

    By Invesco

    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.

    21 March 2024
  • Investment Outlook
    Insurance%20investment%20outlook%202024
    Investment Outlook

    Insurance 2024 outlook

    By Invesco

    Following a year in which disagreements surfaced between Government ministers and the Prudential Regulation Authority over the extent of reforms to UK Solvency II, 2024 should be the year in which the final technical details of the reform package are ironed out and brought into force.

    4 December 2023
  • Alternatives
    Alternative%20income%20for%20Defined%20Benefit%20pensions
    Alternatives

    Diversifying UK DC pension schemes: Improving outcomes through investing in illiquids

    By Invesco

    Investing in illiquids through UK Defined Contributed pensions can improve diversification in portfolios, but we are only at the beginning stages and there’s still much debate. Find out more.

    14 June 2023

Invesco Solutions FAQs

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:

  • Multi asset solutions
  • Private market investments
  • Institutional indexing
  • Liability-aware investing

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.

Read our latest capital market assumptions.

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.

Harness the potential of alternatives

Good outcomes call for alternative thinking.

Partner with our real estate and private credit teams to help achieve targeted portfolio outcomes.

Footnotes

  • 1 Source: Invesco as of 30 September 2023.

    2 Source: Invesco as of 30 September 2023.

Investment risks

  • 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.

Important information

  • 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