To simplify and better align the names of our model portfolios with their investment process and underlying holdings, we are making changes to several portfolio names. We believe these changes will align more closely with client demand and expectations.
Former name |
New name |
|---|---|
Pinnacle Hybrid Plus Multi-Manager |
|
Pinnacle Mutual Fund Plus |
|
Pinnacle Total Beta Tax Aware Multi-Manager |
|
Pinnacle Total Beta Multi-Manager |
|
Pinnacle Total Beta |
|
Pinnacle Total Beta Tax Aware |
|
Pinnacle Smart Beta |
|
Cornerstone Total Beta |
|
BulletShares Corporate |
|
BulletShares Municipal |
|
International Diversification |
Invesco International Diversification (no name change) |
U.S. Factor Rotation |
With the aim of enhancing and differentiating our lineup, we have added a tactical asset allocation component to two of our model portfolios. These portfolios will now combine our longer-term/strategic asset allocation and our shorter-term/tactical asset allocation processes in the following two dynamic portfolios suites, and can rebalance monthly.
The questions that are uppermost on the minds of financial professionals and their clients.
September 1, 2023
In an effort to simplify and better align the names of our model portfolios with their investment process and underlying holdings, Invesco changed the names of several portfolios.
In addition to the name changes, the Invesco Dynamic Active/Passive Portfolios and Invesco Dynamic ETF Portfolios are seeking to enhance their asset allocation approach by including a tactical asset allocation component. The changes aim to improve performance and provide a better overall experience for financial professionals and their clients. There is no impact to current benchmarks or performance track records.
These portfolios will continue to utilize Invesco Solutions’ longer-term risk and return expectations to determine a strategic asset allocation and will now also include shorter term or tactical views, to tilt the portfolios around their strategic allocations. The following sub-asset classes are what may change in these dynamic portfolios based on our tactical views:
With the dynamic asset allocation approach, we expect to see a slightly increased level of trading in the portfolio moving forward, which may improve performance and provide more relevant talking points to our clients via trade rationale documents. These portfolios have historically been reviewed quarterly utilizing Invesco’s longer-term, strategic asset class views, and will now also be reviewed monthly based on our shorter-term, tactical asset class views.
Historically these model portfolios have rebalanced between one and three times a year, while we now expect between three and six rebalances a year.
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Invesco does not offer tax advice. Investors should consult their own tax professionals for information regarding their own tax situations.
Beta is a measure of risk representing how a security is expected to respond to general market movements. Smart beta represents an alternative and selection index-based methodology that seeks to outperform a benchmark or reduce portfolio risk, or both in active or passive vehicles. Asset allocation and diversification do not guarantee a profit or eliminate the risk of loss.
The Invesco models are overseen by the Invesco Solutions team. The team is a part of Invesco Advisers, Inc., an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. It is an indirect, wholly owned subsidiary of Invesco Ltd.
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Invesco Vision, designed by the Invesco Solutions team, is a decision support system that combines analytical and diagnostic capabilities to foster better portfolio management decision-making. By helping investors and researchers better understand portfolio risks and trade-offs, it helps to identify potential solutions best aligned with their specific preferences and objectives. The Invesco Vision tool can be used in practice to develop solutions across a range of challenges encountered in the marketplace.
Invesco Solutions develops Capital Market Assumptions (CMAs) that provide long-term estimates for the behavior of major asset classes globally. The CMAs, which are based on a 10-year investment time horizon, are intended to guide these strategic asset class allocations.
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