Tag: Invesco

Invesco’s Andrew Hall says the best investors are not the most certain: they are the most disciplined about process, psychology and knowing what can go wrong.

Without appreciating or accounting for nuances in the multitude of modern day investment types, opportunities are missed for optimal portfolio management according to Invesco’s Ashley O’Connor.

The contemporary notion of senior secured loans needs to be updated to reflect some of the inherent characteristics that make it one of the fastest growing asset classes in markets.

The rise of passive investment makes tremendous sense, especially when the index being tracked is on the large cap side. Move down the index, however, and it can pay to have someone sorting out the winners from the losers.

Real estate income will face challenges in the new value cycle, Invesco says, but investors will have the chance to build growth if they lean into secular drivers and key differentiators.

The small-cap space can be rife with risk, as emotion and understanding wrestle with common sense practice. But with a systematic style overlaid to provide flexibility, diversification and liquidity, the benefits become clear.

Australian small cap managers are some of the most successful active managers in the world – and charge like it. But their apparently anomalous outcomes might have a relatively simple explanation, according to Invesco.

By employing smart active management, investors can avoid the ghoulish company cohorts that haunt the small cap sector of the stock exchange, Invesco writes in a recent whitepaper.

In this paper, Invesco debunks ten of the most common myths surrounding senior secured loans and explains why they think they’re a valuable addition to an investor’s portfolio. 

Indices are flush in developed markets the world over, but that doesn’t mean prices have necessarily peaked according to Invesco chief global market strategist Kristina Hooper.

Contrary to popular misconception, senior secured loans actually sit at the safest part of the capital structure and remain backed by company assets. That they’re unsafe is one of several fallacies that needs to be busted, says Invesco’s Ashley O’Connor.

In the near to medium term, the group forecasts “ample opportunity” in the loan asset class to generate higher than average returns while maintaining a minimal risk profile for investors.

Inflation has likely peaked and the small cap market has bottomed out. The bad news is that relative returns have already started improving. The good news is that we’re still a few standard deviations from the mean, and there’s still plenty of upside.

The tailwinds for disinflation are starting to coalesce across the globe, which should give some central banks the ‘anchoring’ required to start dropping rates by the middle of the year.

The benchmark core equities sector is a fundamental sleeve in any sophisticated portfolio. Most profess top quartile returns, but which five have genuinely outperformed the market over a three year term?

Teams from Pzena and Invesco scored highly against the Northern Trust-backed Essentia Analytics’ Behavioural Alpha Benchmark, a system designed to differentiate between luck and true investment nous.

When Invesco Global Consulting asked advice clients if they were having ESG conversations with their advisers, three specific investor groups stood out.

The uncertainty seen in markets over 2023 will likely continue over the calender year, but Invesco sees a lot of positives for loans that can only benefit investors.

Senior secured loans recover strongly from economic downturns and plenty of corporates are well prepared for any ructions ahead. Still, active management matters when it comes to selecting new deals.

Meeting the Paris-aligned guidelines can be problematic for Australia’s big investors, but it’s possible to deliver compliant investment strategies with modest tracking error budgets using a layered approach according to one investment group.