Invesco expanding suite of liquid alternatives with new mutual funds

HOUSTON, Jan. 6, 2014 /PRNewswire/ -- Against a backdrop of continued market volatility, investor uncertainty and risk-managed solutions, Invesco is introducing new liquid alternative open-end mutual funds, expanding the firm's diverse range of alternative offerings covering a variety of investing styles.

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Leveraging its global investment management capabilities, deep-rooted and experienced investment teams and 30-year history of alternative investing, Invesco is introducing:

• Invesco Global Targeted Returns Fund
• Invesco All Cap Market Neutral Fund
• Invesco Global Market Neutral Fund
• Invesco Long/Short Equity Fund
• Invesco Macro Long/Short Fund
• Invesco Macro International Equity Fund

"These new funds represent the next phase in our rich history of alternative asset management, covering retail investors, pension plans, sovereign wealth funds and institutions," said Gary Wendler, Head of Product Development & Investment Measurement/Risk. "Our alternative product suite is managed by seven seasoned teams encompassing more than 200 investment professionals across North America, Europe and Asia-Pacific."

Invesco manages more than $85 billion* in alternatives across such major asset classes as commodities, risk parity, bank loans, real estate and private equity. These products span open- and closed-end funds, exchange-traded funds (ETFs), unit trusts, institutional trusts, separate accounts and private placements. Invesco ranked as the seventh largest manager of alternative assets in Pension & Investments' 2012 Money Managers Rankings based on tax-exempt institutional assets.

Invesco offers a breadth of investment capabilities that seek to mitigate risk by addressing it as an organic, ever changing element of investing. Its growing suite of existing liquid alternative funds and those in SEC registration can be used by advisors and investors interested in:

• Macro strategies that incorporate views on global economic trends into investment strategies that seek to provide equity-like returns with lower volatility by investing across different asset classes (e.g., Invesco Global Targeted Returns Fund).
• Relative value strategies that seek to provide positive returns above cash, regardless of market environment, and with potentially lower volatility than the broad market (e.g., Invesco All Cap Market Neutral Fund and Invesco Global Market Neutral Fund).
• Directional strategies that complement other products with similar equity risk to help dampen volatility (e.g., Invesco Long/Short Equity Fund, Invesco Macro Long/Short Equity Fund and Invesco Macro International Equity Fund).
• Inflation hedging strategies that can be used to hedge against excessive moves in interest rates triggered by economic factors.
• Diversified alternatives that offer exposure to a number of alternative asset classes in a single investment. (e.g. Invesco Alternative Strategies Fund - in registration)

"We offer multiple liquid alternative strategies that can help advisors build the foundation for an intentional portfolio to meet their asset allocation needs," said Andrew Schlossberg, Head of U.S. Retail Distribution and Global ETFs.  "We've found that advisors are seeking to meet their allocation needs using a combination of active and passive strategies through multiple vehicles. We believe accessing alternatives through our mutual funds and ETFs provides investors with enhanced transparency, daily liquidity, frequent reporting, and familiar benchmarks.

"Just as we strive to create intelligently designed and well-managed products, we are committed to providing cutting edge support through client education and compelling thought leadership through our Risk Institute, providing advisors access to Invesco's leaders in alternative strategies and risk management concepts."

Invesco's newest liquid alternative funds draw from the experience of teams from Invesco Global Asset Allocation, Invesco Quantitative Strategies and the Multi Asset team from Invesco Perpetual, one of the most recognized and respected investment managers in the United Kingdom.

Invesco Global Targeted Returns Fund 
Management team – Invesco Perpetual Multi Asset 
Overview:

• The fund seeks a positive total return over the long term in all market environments.
• Multi asset absolute return fund providing exposure to a risk-managed blend of investment ideas across all assets classes, geographies, sectors, and currencies.
• Targeting returns of 3-month Treasury bills +5% annualized over a three-year rolling period and aims to achieve this with less than half the volatility of global equities over the same rolling three-year period.
• The fund seeks to achieve its objective across all market conditions by using a portfolio of investment ideas. The fund has an unconstrained research agenda and actively invests across a broad selection of asset classes, geographies, sectors and currencies.

Invesco All Cap Market Neutral Fund 
Management team – Invesco Quantitative Strategies 
Overview:

• The fund seeks to provide a positive return over a full market cycle from a broadly diversified portfolio of stocks while seeking to limit exposure to the general risks associated with stock market investing.
• Seeks to generate returns and manage risk by using offsetting long and short positions.
• The manager has been managing market neutral strategies for over 20 years

Invesco Global Market Neutral Fund
Management team – Invesco Quantitative Strategies 
Overview:

• The fund seeks to provide a positive return over a full market cycle from a broadly diversified portfolio of stocks while seeking to limit exposure to the general risks associated with stock market investing.
• Seeks to generate return and manages risk by using offsetting long and short positions within their respective industries.
• The manager has been managing a global market neutral strategy since 2008

Invesco Long/Short Equity Fund 
Management team – Invesco Quantitative Strategies 
Overview:

• The fund seeks long-term capital appreciation
• U.S. long/short strategy with a long equity market bias.
• Seeks to generate return and manage risk by using long and short positions within their respective industries and tactically adjusting the beta or market exposure of the portfolio based on the forecasted risk environment.

Invesco Macro Long/Short Fund 
Management team – Invesco Global Asset Allocation 
Overview:

• Using a top-down investment strategy, the team will strive to add value and meet the investment objective of absolute return over a complete economic and market cycle in three ways:
  • Individual equity weights chosen on the basis of "smart beta" indices
  • Strategic country/regional weights based on long-term valuation
  • Tactical adjustments to country/regional weights
• Has the ability to short individual markets/countries – may sell exposure to a market via derivatives in order to decrease market exposure without selling individual securities
• Implements strategy through a combination US and foreign equity securities and equity index futures and, at times, a percentage of assets in cash and cash-like equivalents – can hedge active currency risk of underling individual securities
• Target Net Long: 35% - 45%; Maximum Net Exposure: 100%; Minimum Net Exposure: -20%

Invesco Macro International Equity Fund   
Management team – Invesco Global Asset Allocation 
Overview:

• Using a top-down investment strategy, the team will strive to add value and meet the investment objective of total return in three ways:
  • Individual equity weights chosen on the basis of "smart beta" indices
  • Strategic country/regional weights based on long-term valuation
  • Tactical adjustments to country/regional weights
• Maintains net long exposures to each market – may sell exposure to a market via derivatives in order to decrease market exposure without selling individual securities
• Implements strategy through a combination of equity securities and derivatives that provide exposure to issuers in at least three different countries outside the US. The fund may hold up to a 100% of assets in foreign countries, including emerging market countries and may invest in companies of any market capitalization
• Target Net Long: 85-95%; Maximum Net Exposure: 125%; Minimum Net Exposure: 55%

About Invesco Ltd.
Invesco Ltd. is a leading independent global investment management firm, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our clients around the world. Operating in more than 20 countries, the firm is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com.

Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.'s retail mutual funds, exchange-traded funds and institutional money market funds and the subdistributor for its STIC Global Funds. Invesco Perpetual is a business name of Invesco Asset Management Ltd.  Invesco Asset Management Ltd and Invesco Advisers, Inc. are both investment advisers that provide investment advisory services and do not sell securities. Each entity is a wholly owned, indirect subsidiary of Invesco Ltd.

Certain investment products mentioned are available through affiliates of Invesco Distributors, Inc.

NOT FDIC INSURED, MAY LOSE VALUE, OFFER NO BANK GUARANTEE

Before investing, investors should carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the fund(s), investors should ask their advisers for a prospectus/summary prospectus or visit invesco.com/fundprospectus.

For Funds in Registration 
Information contained herein and in the preliminary prospectus is subject to completion or amendment. A registration statement relating to these securities has been filed with the Securities and Exchange Commission, but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or a solicitation of an offer to buy; nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Alternative products typically hold more non-traditional investments and employ more complex trading strategies, including hedging and leveraging through derivatives, short selling and opportunistic strategies that change with market conditions. Investors considering alternatives should be aware of their unique characteristics and additional risks from the strategies they use. Like all investments, performance will fluctuate. You can lose money.

Derivatives may be more volatile and less liquid than traditional investments and are subject to market, interest rate, credit, leverage, counterparty and management risks. An investment in a derivative could lose more than the cash amount invested.

Leverage created from borrowing or certain types of transactions or instruments may impair the fund's liquidity, cause it to liquidate positions at an unfavorable time, lose more than it invested, increase volatility or otherwise not achieve its intended objective.

Short sales may cause the Fund to repurchase a security at a higher price, causing a loss. As there is no limit on how much the price of the security can increase, the Fund's exposure is unlimited.

Equity-linked securities are subject to risks of the issuer defaulting on payments or the underlying equity security, reference rate or index underperforming. Additionally, the trading market for certain equity-linked securities may be less liquid.

A decision as to whether, when and how to use futures involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events.

The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.  An investment in emerging market countries carries greater risks compared to more developed economies.

The dollar value of foreign investments will be affected by changes in the exchange rates between the dollar and the currencies in which those investments are traded.

The investment techniques and risk analysis used by the portfolio managers may not produce the desired results.

Certain of the funds are non-diversified and may experience greater volatility than a more diversified investment. 

Stocks of small and mid-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale.

Each Fund is subject to specific risks.  Please see the prospectus for more information regarding the risks associated with an investment in each Fund.

Smart Beta represents an alternative and selection index based methodology that may outperform a benchmark or reduce portfolio risk, or both. Smart beta funds may underperform cap-weighted benchmarks and increase portfolio risk.

Beta is a measure of relative risk and the slope of regression.

*As of 09/30/13

Diversification does not guarantee a profit or eliminate the loss of risk.

SOURCE Invesco