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.

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.

Examining low volatility’s performance in various market environments

Rates, volatility and a broad market rally have contributed to the factor’s late-summer slump

Nick Kalivas

Late summer has not been fruitful for the low volatility factor. From July 6 to Sept. 9, the S&P 500 Low Volatility Index has fallen by 4.67%, while the S&P 500 Index gained 1.70%.1 This is in sharp contrast to the second quarter, when the low volatility index returned 6.75%, and the broad-market index returned 2.46%.1 Naturally, some investors are wondering what’s behind the shift.

Looking at market conditions during late summer, I see three headwinds that were working against the low volatility factor: