The Art and science of fundamental tactical asset allocation

Our experience as macro investors and asset allocators over a period of decades has demonstrated to us the value of a pragmatic, fundamental approach to tactical asset allocation. We believe identifying the key drivers of markets and determining their relative importance at a given point in time, is best done through a blend of art and science. Our transparent, robust and repeatable four-stage investment process is designed to do just that, and the VOTES framework sits at the very heart of it, providing rigour and reliability to our qualitative approach.

The result is a demonstrable set of tactical market views, which are implemented against a variety of longer-term allocations. We believe this provides the potential to capture excess return while mitigating risk where appropriate.

A fundamental approach to tactical asset allocation

The Multi Asset team has a long heritage1 in asset allocation and puts this experience to work in our repeatable four-step investment process.

Our process combines the Multi Asset team’s deep macro experience and Invesco’s extensive investment capabilities within a robust asset allocation framework. This is designed to exploit relative value opportunities between asset classes and markets on a one-tothree-year time horizon. Our fundamental tactical views can be consistently implemented, in line with a variety of investment objectives and mandate requirements. Comprehensive risk analysis and scenario-testing further enhances portfolio construction decisions.