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.
ESG and Multi Asset – a framework
We provide a framework for how ESG should fit into investment management - and specifically its role in multi-asset and macro investment management.
Webcall replay: Invesco Global Targeted Returns Fund (UK) – Q1 2020 review
Listen to Clive Emery’s latest review of fund performance and any changes made to the strategy during the first quarter of 2020.
Dilemmas for securing income as dividends come under pressure
Income has been thrown firmly in the spotlight in recent days with the news that banks are being advised to cancel all dividend payments and buybacks, highlighting the importance of diversifying income sources.