Once key asset classes and managers have been identified, the next notable barrier is minimum AUM and fee requirements, which can be too high for many schemes to overcome. Recognising this challenge, Invesco has developed an Alternative Solutions Platform. This provides streamlined access to our in-house alternative capabilities together with high quality investments from leading partner firms.
Using this multi-manager platform, pension schemes can benefit from economies of scale and lower minimum investment requirements. Importantly, they can also tap into our expertise on asset classes like senior loans, real estate, private credit and infrastructure. The platform also gives pension schemes access to our global resources and proprietary analysis. Through this ‘extension of staff’ approach, we can reduce the administrative burden for schemes in terms of monitoring, oversight and reporting.
Alternative thinking: accessing opportunities via our private market platform
We started this piece by noting the rapid growth in alternative assets over the past decade and a half. And it’s a trend that isn’t going away any time soon. Investment Week recently noted that demand for alternative assets is ‘set to grow by up to 46% over the next 12 months’, with inflation, diversification and potentially higher returns driving this interest.
Through our analysis and research, we believe private markets can be highly complementary for many institutions. While some institutional investors may have struggled to access private market assets in the past, solutions like our Alternatives Platform are opening the asset class up to a wider audience today. We believe this is an important step in helping clients achieve their investment objectives against a challenging market backdrop.