Alternative strategies: What have the past three years taught investors?

We highlight three key lessons learned, and one that may yet be in store

Davis_Walter_sm_150dpi_RGBWhen I joined Invesco in 2014 and started blogging about alternatives, alternative investment strategies were fairly new to individual investors; most of these mutual funds had track records of less than three years. At that time, many people didn’t know what to expect from this asset class, which gives investors exposure to a broad range of opportunities outside of traditional, long-only stock and bond holdings.1 Today, with the ability to look back over the past three years, there are three key lessons that investors can take away about alternative investment strategies:

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Infrastructure investing: From concrete to computer chips

Learn why Invesco Unit Trusts views information technology as a critical part of the infrastructure category

Nick Clare

Nov. 9, 2016, was not only the day Donald Trump won the presidency; it was also the day that investors’ interest in infrastructure investments was reborn. Since President Trump was elected, expectations for a rebound in infrastructure spending have reached heights not seen in some time. Given President Trump’s purported $1 trillion infrastructure plan, there is reason to be excited. But we at Invesco Unit Trusts believe that having the proper context into what infrastructure represents today is key to successfully investing in the theme.

Expanding the definition of ‘infrastructure’

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Video: What can long and short equities do for your portfolio?

Part of Invesco’s High-Conviction Investing series

Wilson_Donna_Chapman_sm_150dpi_RGBA “long” position in a stock is designed to benefit when that stock’s price rises, while a “short” position is designed to benefit when a stock’s price falls. By including both types of positions in Invesco Long/Short Equity Fund, we seek to achieve positive returns in a variety of market conditions. In the video below, I explain how our strategy works.

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Video: How does a high-conviction approach translate to commodities?

Part of Invesco’s High-Conviction Investing series

Wolle_Scott_sm_150dpi_RGBMany investors include commodities in their portfolio in an effort to hedge against inflation — but can they offer investors attractive long-term returns as well? We believe that potential exists, but it requires a deep understanding of each type of commodity, as well as a sharp focus on risk management.

Invesco Balanced-Risk Commodity Strategy Fund combines a focus on key near-term drivers and long-term return sources that seek to help investors capitalize during periods of inflation without sacrificing total return potential.

In the following video, I dive deeper into Invesco’s balanced-risk commodities strategy, including:

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Video: Searching for a fund that targets a positive return with lower volatility?

Part of Invesco’s High-Conviction Investing Series

Millar_David_sm_150dpi_RGBI like to say that a high-conviction approach means investing in ideas — ideas that span locations, currencies, asset classes and market sectors. This priority on ideas over assets informed the creation of Invesco Global Targeted Returns, a strategy comprising 20 to 30 long-term investment ideas within one risk-managed fund.

By finding independent sources of return, the fund emphasizes a flexible approach to long-term investing and seeks to minimize volatility. In the video below, I explain the methodology behind our strategy, including how we strive to:

  • Identify and combine long-term investment ideas that will work together in a single fund.
  • Manage risk to deliver a lower-volatility return over time.
  • Introduce additional, independent return sources, beyond traditional stocks and bonds.
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Video: Looking for an equity strategy that minimizes market volatility?

Part of Invesco’s High-Conviction Investing series

Wilson_Donna_Chapman_sm_150dpi_RGBInvesco All Cap Market Neutral is a high-conviction strategy that seeks to minimize investors’ exposure to market movements, and deliver returns that are generated from our stock selection ability. We believe this type of strategy helps to reduce equity market volatility, which is a concern for many investors. In this video, I outline several aspects of this strategy, including details about:

  • The characteristics we look for when making investment decisions.
  • How we attempt to mitigate risk.
  • Why investors might consider market neutral strategies.
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