Systematic equities
Our Invesco Quantitative Strategies (IQS) team uses cutting edge technologies and data driven insights to find the latest investment opportunities for clients.
40+ years of factor investing
IQS have been managing systematic portfolios since 1983 across geographies and asset classes, including active funds and ETFs.
30+ years of ESG investing
Incorporating key environmental, social, and governance (ESG) factors holistically through the investment process.
$29+ bn of client assets
We manage more than US$29+ and customise strategies to our individual client needs and risk profile and are growing strongly.
Why consider Invesco for systematic equities?
Our IQS team takes a collaborative investing approach, focusing on both portfolio management and research. With 40+ team members across the globe, the team has extensive experience in systematic and rules-based investments.
Multi-factor investment approach – We believe looking at proprietary factors such as value, momentum and quality help set the strategy apart and enabling us to deliver better outcomes for our clients. An innovative approach to portfolio construction helps to transfer our insights into client portfolios.
Collaborative team culture – We share best practices with multiple investment teams and asset classes, so we can customise products to suit client needs and risk profile.
Research driven – Our research on investment process is in-depth, we have 25+ analysts that work closely with our portfolio management team and have ties with academia.
Integrating ESG – IQS considers ESG factors systematically at various levels of the investment process, and actively engages in dialogue with companies through engagement programmes and proxy voting.
Agnostic of vehicles and wrappers
We use the full breadth of vehicles and wrappers available. We run traditional mutual funds in various jurisdictions, a broad range of segregated mandates, and we also wrap our strategies successfully into active ETFs and index structures. Our products are essentially agnostic of strategy wrappers and vehicles.
Frequently asked questions
The idea of systematic or quantitative investing comes from the insight that emotions can hinder success in investing. Systematic strategies look for evidence about certain characteristics of securities which explain part of their risk or returns, so-called factors.
In a systematic approach, investment portfolios are constructed by analysing a big variety of data to understand economic and company trends.
Data can come from fundamental data on companies such as balance sheet items, price signals or alternative data sources such as credit card data, NLP analysis of earnings calls or even the coverage of analysts.
These insights can be used to construct portfolios based on client needs and risk profiles in both active mutual funds and ETFs.
A factor is a quantifiable characteristic of a stock. A multi-factor investment approach invests in a group of stocks with similar characteristics. For example, this could be low P/E ratios, low volatility, high dividend yields or low market capitalisation.
Our team focuses on the factors - value, momentum and quality. In the value factor, we examine stocks are examined that have attractive valuations. Momentum looks at the price and or earnings dynamics of a stock. In the quality factor, we examine the balance sheet strength, management and profitability of a company.
The importance of portfolio construction is often underestimated even by experienced quantitative investors. People tend to focus on the data (the machine of your racing car) but this does not help if that car has no wheels. Portfolio construction is similar: our portfolio construction is designed to transfer as much of our research insights into the portfolios while focussing on strict risk controls and a state-of-the-art management of transaction costs.
Our investment process is highly flexible when it comes to tailoring to our investors need. A particular area of customisation is ESG integration. In addition to ESG expertise and an ability to handle huge amounts of data, ESG integration also ultimately comes down to portfolio construction.
We have developed a particularly smart two-step process to integrate ESG in a most transparent way. It allows for disentangling of ESG and return factors, helps ESG risk budgeting and enables precise attribution analysis. We integrate ESG in both a variety of standard funds as well as in segregated accounts with particular customisation.
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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.
Important information
Data as at 4th November 2024.
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.
Views and opinions are based on current market conditions and are subject to change.
EMEA 3996786/2024
