Invesco

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.

There’s still ample opportunity for loans generate higher than historical average returns, with Invesco expecting outperformance over the next 6-12 months. And with a recession potentially on the horizon they come with downside protection included.