Whitepaper: Dynamic Asset Allocation

Invesco Solutions' dynamic asset allocation investment process is a disciplined, repeatable, and scalable process that aims to deliver alpha by balancing strategic and tactical asset allocation views. This process is designed to help investors reach their goals by balancing near and long-term portfolio objectives.

The process begins with a strategic asset allocation that aligns with an investor's risk tolerance and goals based on their investing time horizon. The strategic allocations are derived through an optimization process that starts with an appropriate benchmark based on investment objectives. The tactical asset allocation approach aims to exploit opportunities presented by fluctuations in asset classes over the course of a business cycle. This approach utilizes a regime-based framework built from extensive research on how macroeconomic and market events affect asset class performance. 

By combining strategic and tactical asset allocation views, investors can potentially achieve stronger risk-adjusted returns by starting with a strategic approach and tactically adjusting to take advantage of near-term opportunities.