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Alternatives

Alternative investment solutions

Discover how alternatives can help align portfolios with investment objectives.

Now is the time to look at your alternatives exposure

As long-term return expectations across traditional markets are declining — and concerns around the impact of inflation are rising — we believe alternatives will play an increasingly important role in investors’ portfolios.

As a diversified asset class, alternatives can tap into private market opportunities that target income generation and capital appreciation where other public strategies may not. The benefits of investing in private markets are increasing in breadth, and the role of alternatives in asset allocation has become a critical component in achieving key investment outcomes.

An outcome-based approach

When adding or expanding portfolio allocations to alternatives, investors need to take a nuanced view of the drivers of risk and return to align investments with desired outcomes. There are three objectives that investors may seek when designing portfolios that include alternative investments: income, real return, and growth.

income

Income

Alternative investments typically de-risk over time as current income is generated, offering incremental spread over traditional asset classes.

Real return

Real return

Real assets may provide a source of income that rises to stay ahead of inflation via long-dated, stable cash flow generation.

Growth

Growth

Alternative growth assets aim to generate enhanced price appreciation, while asset-specific drivers can be uncorrelated to traditional equity markets.

Alternative investments at Invesco

At Invesco, we see alternative investments as a way to enhance portfolios and aim to demystify the alternative investing experience. Our team draws on their 25+ years of experience managing alternative assets to simplify the process of building and optimizing alternative portfolios.

Investment insights