Over the last 12-18 months, widespread inflation and rising interest rates have caused a marked change in the global investment landscape. Against this backdrop, how has the outlook for alternative assets changed in the world of insurance asset management?
Will higher interest rates dampen the prospects for real estate, or create valuation opportunities? Does private credit still make sense now that public fixed income markets are offering meaningful yields?
While the changing investment environment is presenting new challenges, we believe alternatives remain as important as ever for insurance investors seeking enhanced income, returns and diversification.
In a series of thought-provoking videos, our alternative experts (covering global real estate, private credit, tailored solutions and more), delve into the market, introduce Invesco's capabilities and assess the important role alternatives can play in delivering diversification.
Navigate alternative markets with a trusted partner
At Invesco, we've been managing alternative solutions for almost 40 years. Today, our assets under management total $186 billion, managed by over 481 dedicated private markets professionals (as at 31 March 2023).
Discover our comprehensive range of capabilities, spanning real estate, private credit and customised solutions.
At Invesco, we view real estate as a key component of any multi-asset class portfolio or investment strategy. With 21 offices across 16 countries, we enjoy a global reach, matched with a depth of professional experience, allowing us to offer premium real estate investment solutions from both a global and local perspective. With ~ $90 bn in AUM, we're one of the world's largest real estate managers. Invesco Real Estate has actively invested from core to opportunistic in debt and equity for over 40 years.
Invesco Private Credit is one of the world's largest and most experienced private credit managers, catering to a wide range of client objectives and risk tolerances. With a preference for senior secured debt, our capabilities include broadly syndicated loans, direct lending and distressed credit.
The Invesco Solutions team's mission is to help clients solve simple and complex challenges, harnessing the wide range of capabilities available across Invesco and via partner firms. Our Solutions team can help you build customised portfolios that align with your objectives. We offer a comprehensive range of services, from optimising strategic and tactical asset allocation to building multi-asset portfolios with alternative investments.
Commodities can help you diversify your portfolio and mitigate against the effects of inflation. Our ETF range can help you gain efficient access to an asset class that's otherwise highly illiquid.
The value of investments and any income will fluctuate (this may partly be the result of exchange-rate fluctuations) and investors may not get back the full amount invested.
Alternative investment products may involve a higher degree of risk, may engage in leveraging and other speculative investment practices that may increase the risk of investment loss, can be highly illiquid, may not be required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual portfolios, often charge higher fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager. There is often no secondary market for private equity interests, and none is expected to develop. There may be restrictions on transferring interests in such investments.
This marketing communication is for discussion purposes only and is exclusively for use by professional clients in the UK. It is not intended for and should not be distributed to, or relied upon by, the public.
Data is provided as at 30 June 2023, sourced from Invesco, unless otherwise stated.
This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. Views and opinions are based on current market conditions and are subject to change.
Issued by Invesco Asset Management Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK. Authorised and regulated by the Financial Conduct Authority.