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Discover how alternatives can help align portfolios with investment objectives.
As the long-term return expectations across traditional markets are declining and concerns around the impact of potential inflation rising, navigating the markets will be even more challenging.
The unique characteristics of alternative assets means that they typically generate higher returns than what might be found in public market assets, so capturing the benefits of private markets will be increasingly critical to achieving key investment outcomes.
In the 2022 edition of Alternative Opportunities, we are proud to introduce views on a variety of private asset classes from Invesco Investment Solutions and our partner firms. COVID-19 and its variants remain a challenge to both public health and policymakers with the spread of the Omicron variant. Despite these concerns, our team continues to design outcome-oriented portfolios for our clients throughout the uncertainty.
Source: Invesco Investment Solutions, current views as of Sept. 30, 2021. For illustrative purposes only. Past performance is not a guarantee of future results. There can be no assurance that any estimated returns or projections can be realized, that forward-looking statements will materialize or that actual returns or results will not be materially lower than those presented. An investment cannot be made into an index. Refer to Proxy information slide for additional information.
Alternatives are powerful investment tools, but their behavior and effect on portfolios are often misunderstood.
We see alternative investments as a way to enhance portfolios and aim to demystify the alternative investing experience. Our team draws upon over 25 years of experience managing alternative assets to simplify the process of building and optimizing alternatives portfolios.
Using Vision — our proprietary asset allocation tool — we can combine alternative and traditional assets to build outcome-oriented portfolios.
Neil Blundell, Head of Global Client Solutions and Alternative Solutions discusses what differentiates our approach to alternative investment
With expanding allocations to alternatives, institutions will need to take a nuanced view of the drivers of risk and return to align investments with desired outcomes. Below are three thematic objectives that investors may seek when designing alternative portfolios: income, real return, and growth.
The Invesco Alternative Solutions team partners with clients to provide advisory services and a range of customized and commingled solutions to help navigate an increasingly complex alternatives landscape. Bridge the gap between investment strategy and execution with our flexible multi-manager platform designed to simplify the process of investing in alternative assets.
| Client challenge | Solutions capability | |
|---|---|---|
| Navigating markets | Proprietary return and risk forecasts | ✓ |
| Customized asset allocation | + Vision: Proprietary portfolio decision support system + Asset liability matching / liquidity management / SCR |
✓ |
| Access to high quality investments | Sourcing, due dilligence, capacity | ✓ |
| Implementation | + Diversification + Custom and/or commingled |
✓ |
| Flexible delivery | Deeper relationships, aligned economics | ✓ |
| Monitoring, oversight and reporting | Investment and operational oversight and integrated reporting | ✓ |
We understand that objectives and preferences can vary widely from one investor to another.
With our proprietary portfolio management decision support system, Invesco Vision, we can understand forecasted risks and returns and correlations between portfolio assets. From that analysis, we can begin to develop a more efficient portfolio allocation that includes alternatives to improve the portfolio’s ability to meet investment objectives.
Jaijit Kumar, Head of Asia Insurance Solutions showcase that adding alternative asset classes on top of traditional assets can make a portfolio more efficient, increasing the expected return while still managing the economic risk and solvency capital requirement.
Differentiated sources of income in a low rate world.
Source: Invesco Investment Solutions, Bloomberg L.P., Burgiss, Preqin. For illustrative purpose only. All historical return data covers a 15Y period, other than 1st lien private credit, which is 10Y, the longest period available for the CDLI-S index. Past performance is not a guarantee of future results. There can be no assurance that any estimated return or projections can be realized that forward-looking statements will materialize or that actual return or results will not be materially lower than those presented. Current return data as of Sep. 30, 2021. Data is unhedged USD. An investment cannot be made into an index. Refer to Proxy information slides 46 - 47 for additional information. Capital market assumptions are forward-looking, are not guarantees, and they involve risks, uncertainties, and assumptions.
Episode 2 of the Invesco Alternative Opportunities Audio Series has Ben Gutteridge, Invesco Investment Director and Kate Browning, Invesco Alternatives Investment Specialist, speaking to Daniel Pietrzak, Partner, KKR Credit.
Diversify macroeconomic risks found in traditional assets.
Source: Invesco Investment Solutions, Bloomberg L.P., Burgiss, Preqin. For illustrative purpose only. Historical return data is for all assets. Past performance is not a guarantee of future results. There can be no assurance that any estimated return or projections can be realized that forward-looking statements will materialize or that actual return or results will not be materially lower than those presented. Current return data as of Sep. 30, 2021. Data is unhedged USD. An investment cannot be made into an index. Refer to Proxy information slides 46 - 47 for additional information. Capital market assumptions are forward-looking, are not guarantees, and they involve risks, uncertainties, and assumptions.
Find growth amid high valuations.
Source: Invesco Investment Solutions, Bloomberg L.P., Burgiss, Preqin. For illustrative purpose only. Historical return data is 15Y of all assets. Past performance is not a guarantee of future results. There can be no assurance that any estimated return or projections can be realized that forward-looking statements or the actual return or resuts will be materially lower than those presented. Current return data as of Sep. 30, 2021. Data is unhedged USD. An investment cannot be made into an index. Refer to Proxy information slides 46 - 47 for additional information. Capital market assumptions are forward-looking, are not guarantees, and they involve risks, uncertainties, and assumptions.
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