Invesco makes a big push into alternatives

Six new liquid alternatives funds are part of firm's effort to help advisers handle risk.
FEB 11, 2014
Invesco has launched six new liquid alternatives mutual funds in the past month, more than doubling its total number of such funds as it makes a big push into the fast growing space. “A large part of our conversations with advisers is around risk mitigation, risk management and finding uncorrelated assets,” said Andrew Schlossberg, head of U.S. retail distribution and global ETFs. “It's a big topic. We see it as a long-term topic of discussion with advisers.” Since last month, Invesco has launched an all-cap market-neutral fund, a global-market-neutral fund, a U.S. long/short equity fund, a global-macro long/short equity fund, an international-macro long/short equity fund, and a global macro fund. Each of the funds will be run by portfolio managers who already run similar strategies in separately managed accounts for institutional clients. Invesco also is working on expanding its suite of fixed-income alternatives, but Gary Wendler, head of product development and investment measurement/risk, declined to discuss specifics since nothing has been filed with the Securities and Exchange Commission. “Alternatives are going to be a lot bigger part of portfolios going forward because of the diversification benefits,” he said. Invesco isn't the only asset manager betting that alternatives will continue to get more popular. Well known hedge funders like The Carlyle Group, Blackstone Group Inc., and KKR & Co have also been increasing their push into the area. Follow the money, and you'll see why. Liquid alternative mutual funds had a record $88 billion of net inflows through the first 11 months of 2013, up from $19 billion in 2012. The majority of the new money flowing into the liquid alternatives space went into nontraditional bond funds, but long/short equity funds, such as the ones Invesco launched, attracted $18 billion through November, up from $6.1 billion, thanks to an increased acceptance among institutional investors. More than 45% of institutions said that they use long/short mutual funds, for example, up from 38% in 2010, according to the Morningstar and Barron's 2012 Alternative Investment Survey of U.S. Institutions and Financial Advisers. The percent of institutions using long/short equity hedge funds fell to 26%, from 61% in 2010, according to the study.

Latest News

Fintech bytes: Vestwell comes through for underserved savers with multilingual support
Fintech bytes: Vestwell comes through for underserved savers with multilingual support

MyVest and Vestmark have also unveiled strategic partnerships aimed at helping advisors and RIAs bring personalization to more clients.

UBS profit beats estimates as Ermotti sees brighter outlook
UBS profit beats estimates as Ermotti sees brighter outlook

Wealth management unit sees inflows of $23 billion.

Evercore to buy advisory firm Robey Warshaw for $196 million
Evercore to buy advisory firm Robey Warshaw for $196 million

Deal will give US investment bank a foothold in lucrative European market.

Gates and Buffett’s Giving Pledge is 15 years old, but many signatories are richer than ever
Gates and Buffett’s Giving Pledge is 15 years old, but many signatories are richer than ever

New report examines the impact that the initiative has had on philanthropy.

Americans stay the course on 401(k) savings despite inflation fears
Americans stay the course on 401(k) savings despite inflation fears

Few feel confident that they will meet their retirement goals.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.