Risk & Reward - 2nd issue 2020
Research and investment strategies
We offer insights into the relevance of asset allocation for portfolio insurance, how fixed income portfolios can be analyzed through a factor lens, and a recent global study of artificial intelligence in the financial services sector.
Marty Flanagan, President and CEO of InvescoCOVID-19 has reminded us that, even after centuries of scientific progress, markets move in cycles that present both challenges and opportunities.
On the relevance of strategic and tactical asset allocation for portfolio insurance
Dr. Martin Kolrep, Dr. Harald Lohre, Erhard Radatz and Carsten Rother
Investors today are looking to take more risks to comply with their return targets in the face of persistently low interest rates. Yet their propensity to digest such risk is typically unchanged from the past, reinforcing the need for strict and accurate management of the available risk budget. This is where portfolio insurance comes into play.
“It is all about a harmonious triad of strategic allocation, tactical flexibility and risk budgeting.”
Interview with Dr. Martin Kolrep and Dr. Harald Lohre
Investors today are looking to take more risks to comply with their return targets in the face of persistently low interest rates. Yet their propensity to digest such risk is typically unchanged from the past, reinforcing the need for strict and accurate management of the available risk budget. This is where portfolio insurance comes into play.
AI in financial services: mass adoption and beyond
Interview with Lukas Ryll, Mary Emma Barton and Donie Lochan
A new study by the University of Cambridge and the World Economic Forum suggests that Artificial Intelligence and Machine Learning are on the brink of mass adoption in financial services. We spoke to two of the study’s co-authors and to Invesco’s Chief Technology Officer, Donie Lochan, who offers a practitioner’s perspective.
Know your factors: a case study in fixed income portfolio analysis
Ward Bortz
At Invesco Fixed Income, we believe it is important to “know your factors”. Just as understanding one’s customers can help mitigate risk from a business perspective, knowing one’s factor exposure can help mitigate risk in an investment context.
Investment risks
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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
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Data as at 31.03.2020, unless otherwise stated. This document is marketing material and is not intended as a recommendation to invest in 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. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.
Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals, they are subject to change without notice and are not to be construed as investment advice.
