Invesco Launches Premia Plus Strategy
Invesco’s Global Asset Allocation Group has recently been awarded mandates to fund Premia Plus strategy, a risk premium capture strategy. Premia Plus utilizes a unique approach to risk management designed to generate consistent returns in any economic environment. The strategy seeks to accomplish this goal by investing in a balanced set of asset classes: equities, government bonds and commodities. The weights of the asset classes are set such that each contributes a similar amount of risk to the overall portfolio, thereby seeking to defend against negative economic outcomes.
Premia Plus targets a return of cash plus 6% with total volatility of 8%. The strategy employs a long-only implementation that can be used as a stand-alone investment or combined with other alpha or beta strategies, similar to fund of hedge funds.
“The essence of the product is efficiently capturing risk premia, the excess return that investors receive for owning risky assets, above the cash return,” said Scott Wolle, CIO of Invesco Global Asset Allocation. “Unlike many other products that target a similar return profile, Premia Plus is very competitively priced, has daily valuation, no lock-up, and high transparency.”
Premia Plus is designed to take advantage of what investment markets offer — risk premia and diversification — raising the average excess return above cash and reducing the range of outcomes. It is a strategy that relies on the efficient capture of risk premia from various asset classes and uses proprietary risk management and re-balancing techniques to generate equity-like returns with bond-like risk.
Invesco is a leading independent global investment management company, dedicated to helping people worldwide build their financial security. By delivering the combined power of our distinctive worldwide investment management capabilities, including AIM, Atlantic Trust, Invesco, Perpetual, PowerShares, Trimark, and WL Ross, Invesco provides a comprehensive array of enduring investment solutions for retail, institutional and high net worth clients around the world. Operating in 20 countries, the company is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com.
Media Relations Contact:
Bill Hensel, 404-479-2886
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