Model portfolios

Model Portfolios: Turn our expertise into your edge

The Invesco Solutions team is a multi-asset investment team focused on delivering outcome-oriented solutions to our clients — understanding their unique needs, constraints, and investment objectives. 

Our investment process for the model portfolio platform can be broken down into three major steps or disciplines: strategic asset allocation, tactical asset allocation and fund selection. 

Our strategic asset allocation process is focused on harvesting well-documented long-term return opportunities that exist across various asset classes. We carefully divide the risk allocation between passive, systematic factor, and active management strategies, depending on the asset class in question. 

Our tactical asset allocation process is centred on the belief that return opportunities and risks change over the course of the business cycle. Over the years, we have developed a process that is informed on a combination of leading economic indicators and global risk appetite, to model and estimate the prevailing macroeconomic regime. As economic conditions change, we believe risks and opportunities change across asset classes.

After establishing the appropriate asset allocation, we move on to the second portion of the investment process; particularly focused on the manager or fund selection. Our manager selection process starts with a very rigorous quantitative framework, aimed at understanding the long-term structural return and risk characteristics of each strategy. This quantitative process is then further augmented and integrated with the qualitative analysis of the investment process of each manager.

Finally, regarding risk and performance monitoring, we apply the same institutional quality standards in the creation of risk and attribution reports for our model portfolio platform, as we apply to all of our mandates. We create detailed risk and performance attribution reports, that enable us to provide clients with very clear information around the performance of their portfolios, how they behave through time and the evolution of the risk exposures. 

I believe there are two key differentiators in our investment process and model portfolio platform. First, Invesco Vision is our market leading institutional quality portfolio construction engine that allows our investment team to customise every step of the investment process. Delivering tactical and strategic asset allocation solutions in both taxable and tax aware model portfolios. 

The second key differentiator is our proprietary macro-regime framework and differentiated tactical asset allocation process by which we manage portfolios through the various stages of the business cycle. The fundamental and economic intuitive nature and transparency of this macro-regime framework and process has resonated well with our clients, as they’re able to understand always, the why, the when, and the how their portfolios are changing in response to changing macroeconomic conditions.

The ultimate output is truly a comprehensive and cobranded partnership and experience with our clients.

Important information

Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by any Federal Government Agency

There can be no assurance that any investment process or strategy will achieve its investment objective. Asset allocation and diversification does not guarantee a profit or eliminate the risk of loss. Past performance is not a guarantee of future performance.

The information in this video does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial advisor/financial consultant before making any investment decisions. Please read all financial material carefully before investing. For additional information, contact Invesco.

The opinions expressed are those of the speaker, are based on current market conditions, and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.

The Invesco Solutions team is a business unit of Invesco Advisers, Inc., a registered investment adviser that provides investment advisory services and does not sell securities. Invesco Advisers, Inc. is an indirect, wholly owned subsidiary of Invesco Ltd.

Invesco Vision, designed by the Invesco Solutions team, is a decision support system that combines analytical and diagnostic capabilities to foster better portfolio management decision-making. By helping investors and researchers better understand portfolio risks and trade-offs, it helps to identify potential solutions best aligned with their specific preferences and objectives. The Invesco Vision tool can be used in practice to develop solutions across a range of challenges encountered in the marketplace. For additional information on our methodology, please contact Invesco.

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