Invesco Solutions

Portfolio analytics and advisory services

Portfolio management is becoming increasingly challenging. Markets are growing more complex, technology is advancing, and daily news flow is proliferating, which can create more confusion than clarity. Furthermore, more investors are looking beyond public markets to alternative investments to help meet liabilities and dampen volatility.

To help, we have created a state-of-the-art, proprietary technology solution, Invesco Vision. This is a portfolio research and analytics platform. By identifying risk and return drivers, as well as exposures to an array of factors, Vision identifies optimal investment strategies. Vision can stress-test portfolios and run “what if” scenarios to learn how different variables affect investment outcomes, for interactive, on-the-spot portfolio analysis.  

Our experienced investment professionals work as an extension of staff to develop tailored solutions that help investors meet their desired investment outcomes. We combine an outcome-based focus with Vision analytics to develop a wide range of custom solutions, designed around investor goals.

Real world client examples include guidance on strategic and tactical asset allocation, manager selection across public and private markets, index solutions, managing liabilities, regulatory considerations, and engaging in strategic partnerships.

When constructing and optimising portfolios, Invesco Vision helps us consider:

• Absolute vs relative risk
• Mean-variance optimisation vs robust optimisation
• Multi-period optimisation
• Cashflow / liability matching
• Regulatory concerns, such as Solvency II capital requirements
• Scenario and factor analysis

Capital market assumptions

Our capital market assumptions provide long-term estimates for the behaviour of over 170 different asset classes. These are based on a 10-year investment horizon and can help guide your strategic asset allocation.

We focus on expected return, volatility and correlation with other asset classes.

Read our capital market assumptions >

Accessing alternatives

As investors seek to enhance growth, income and diversification, alternative assets have become an increasingly important part of institutional portfolios.

Our alternatives platform simplifies the process of investing in alternatives - providing access to Invesco’s in-house capabilities alongside specialist managers who offer complementary expertise in private credit, private equity and real assets.

Invesco’s Alternatives Platform

• Diversification: Harness the potential of strategies ranging from senior loans and real estate - to private credit and infrastructure.
• Streamlined: Simplifying the process of investing in alternative assets, bridging the gap between your investment strategy and execution.
• Private market access: Our multi-manager platform includes high-quality, third-party managers with low minimum investment requirements and compelling fees.
• Analysis: Using Invesco Vision, we can understand forecasted risks, returns and correlations between portfolio assets, and integrate alternatives to improve your portfolio’s ability to meet its investment objectives.
• Flexibility: We can offer advisory services as well as customised and commingled multi-alternative solutions (targeting income or targeting growth), whilst acting as an extension of your team.
• Reporting: Through the platform you have access to investment and operational monitoring with integrated reporting.

Cashflow-driven investing (CDI)

CDI solutions focus on sourcing and delivering income to meet liabilities as they fall due. This can be achieved by holding a mix of public and private assets, which deliver a combination of stable income and long-term cashflows. We focus on three key types of strategy:

• Cashflow-aware: Sourcing investments with a focus on high income and greater certainty of return.
• Cashflow-matching: Holding high quality assets to maturity to match the expected liability cashflows.
• Buyout-aware: Holding assets which receive favourable insurance capital treatment, either to mirror an insurance strategy or to support a future insured solution.

Tactical asset allocation or factor rotation

Dynamic factor allocations aim to achieve better results by anticipating changes in the business cycle.

• Proprietary macro regime framework
  Access our proprietary framework, which provides an intuitive and actionable methodology to tactical factor allocation.
• Systematic, transparent process
  We employ a transparent, rules-based investment process, which is transferrable across asset classes.
• Dynamic factor tilting
  We can dynamically tilt factor portfolios to take advantage of changing market environments.