Pool seeks consistent returns in different economic environments
TORONTO, July 18, 2017 /CNW/ - Since the financial crisis of 2008–09, the global economic recovery has largely been fuelled by accommodative monetary policy. Exceptionally low interest rates have reduced market volatility around the world while also driving up prices for virtually all asset classes.
More recently, interest rates have begun to edge higher in both the U.S. and Canada. As monetary policies continue to evolve, it is increasingly evident that historically easy monetary conditions are slowing. If fundamentals, rather than liquidity, begin to drive share prices, investors may soon face increased volatility. In this scenario, uncertainty has become a dominant investment theme.
Recognizing that economic shifts are difficult to predict, Invesco Canada today announced the launch of Invesco Balanced-Risk Allocation Pool, Series F (the "Pool"), which is available for sale to individuals who qualify as accredited investors.
The Pool is an actively managed, multi-asset portfolio that aims to deliver a positive total return to investors with a low-to-moderate correlation to traditional financial market indices.
The Pool is managed by the Atlanta-based Invesco Global Asset Allocation (GAA) team,1 led by Chief Investment Officer Scott Wolle. Each of the team's senior members has more than 20 years of industry experience. The team has managed the strategy in the U.S. since 2008. Since then, its global assets have surpassed US$17 billion.2
The portfolio managers use a risk-premium-capture strategy that seeks to generate returns by investing in equity, fixed-income and commodity markets using a long-only, risk-balanced investment process.
The primary focus is to build a portfolio that may perform well in diverse economic environments – recessionary, non-inflationary growth and inflationary growth – while balancing the amount of risk contributed by its exposure to equity, fixed-income and commodity allocations.
"Increasingly, alternative investments are being used to insulate and protect portfolios from traditional equity and interest-rate risk," said Scott Newman, Vice President and Team Lead, Global Investment Strategies, Invesco Canada. "This adoption continues to grow with many institutional investors around the world, and we are pleased to offer the Pool to accredited retail investors to allow access to true risk-parity investing."
The Pool is the second alternative offering Invesco Canada has made available to accredited investors who work with a fee-based broker, following the launch of Invesco Global Targeted Returns Pool, Series F on June 1, 2016.
1 The GAA team is part of Invesco Advisers, Inc., which is the sub-advisor to Invesco Balanced-Risk Allocation Pool, Series F.
2 As at March 31, 2017.
About Invesco Ltd.
Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; invesco.com.
Management fees, expenses and fees payable to your financial advisor or dealer may all be associated with pooled fund investments. Pooled funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the offering memorandum before investing. Copies are available from your advisor or Invesco Canada Ltd.
Series F is available only to eligible investors who have fee-based accounts with their dealer and whose dealer has signed an Invesco Series F dealer agreement with Invesco Canada.
Invesco® and all associated trademarks are trademarks of Invesco Holding Company Limited, used under licence.
© Invesco Canada Ltd., 2017
SOURCE Invesco Canada Ltd.
For further information: Aysha Mawani, Vice President, Corporate Affairs, Tel: 416.324.7712, [email protected]