Invesco started the new year off with a bang as it announced the introduction of six new liquid alternative mutual funds that utilize a wide range of investment styles including equity long/short, equity market neutral, global macro and multi-strategy. The six new funds, listed below, compliment the existing alternative strategies already offered by Invesco through mutual funds, ETFs, separately managed accounts and other institutional and retail vehicles.

• Invesco Global Targeted Returns Fund
• Invesco All Cap Market Neutral Fund
• Invesco Global Market Neutral Fund
• Invesco Long/Short Equity Fund
• Invesco Macro Long/Short Fund
• Invesco Macro International Equity Fund

In total, the firm currently manages $85 billion of alternative assets with much of this being for institutional investors. In 2012, Pensions & Investments ranked Invesco as the seventh largest manager of alternative assets based on tax-exempt institutional assets under management. Our alternative product suite is managed by seven seasoned teams encompassing more than 200 investment professionals across North America, Europe and Asia-Pacific, stated Gary Wendler, Head of Product Development & Investment Measurement/Risk in a statement from the company. Invescos newest liquid alternative funds will draw from the experience of three of the teams: Invesco Global Asset Allocation, Invesco Quantitative Strategies and the Multi Asset team from Invesco Perpetual in the United Kingdom.

Advisors over the past several years have made it clear that alternative investment eduction is important to them, and that their limited knowledge of alternative strategies is a barrier to making larger allocations. In an effort to help address this issue, Invesco is working to break down that barrier and assist advisors in gaining more knowledge about alternatives. Just as we strive to create intelligently designed and well-managed products, we are committed to providing cutting edge support through client education and compelling thought leadership through our Risk Institute, providing advisors access to Invescos leaders in alternative strategies and risk management concepts, said Andrew Schlossberg, Head of U.S. Retail Distribution and Global ETFs.

More details on each fund are outlined below.

Invesco Global Targeted Returns Fund

Management team – Invesco Perpetual Multi Asset

Overview:

• The fund seeks a positive total return over the long term in all market environments.
• Multi asset absolute return fund providing exposure to a risk-managed blend of investment ideas across all assets classes, geographies, sectors, and currencies.
• Targeting returns of 3-month Treasury bills +5% annualized over a three-year rolling period and aims to achieve this with less than half the volatility of global equities over the same rolling three-year period.

• The fund seeks to achieve its objective across all market conditions by using a portfolio of investment ideas. The fund has an unconstrained research agenda and actively invests across a broad selection of asset classes, geographies, sectors and currencies.

Invesco All Cap Market Neutral Fund

Management team – Invesco Quantitative Strategies

Overview:

• The fund seeks to provide a positive return over a full market cycle from a broadly diversified portfolio of stocks while seeking to limit exposure to the general risks associated with stock market investing.
• Seeks to generate returns and manage risk by using offsetting long and short positions.
• The manager has been managing market neutral strategies for over 20 years

Invesco Global Market Neutral Fund

Management team – Invesco Quantitative Strategies

Overview:

• The fund seeks to provide a positive return over a full market cycle from a broadly diversified portfolio of stocks while seeking to limit exposure to the general risks associated with stock market investing.
• Seeks to generate return and manages risk by using offsetting long and short positions within their respective industries.
• The manager has been managing a global market neutral strategy since 2008

Invesco Long/Short Equity Fund

Management team – Invesco Quantitative Strategies

Overview:

• The fund seeks long-term capital appreciation
• U.S. long/short strategy with a long equity market bias.
• Seeks to generate return and manage risk by using long and short positions within their respective industries and tactically adjusting the beta or market exposure of the portfolio based on the forecasted risk environment.

Invesco Macro Long/Short Fund

Management team – Invesco Global Asset Allocation

Overview:

• Using a top-down investment strategy, the team will strive to add value and meet the investment objective of absolute return over a complete economic and market cycle in three ways:
• Individual equity weights chosen on the basis of smart beta indices
• Strategic country/regional weights based on long-term valuation
• Tactical adjustments to country/regional weights
• Has the ability to short individual markets/countries – may sell exposure to a market via derivatives in order to decrease market exposure without selling individual securities
• Implements strategy through a combination US and foreign equity securities and equity index futures and, at times, a percentage of assets in cash and cash-like equivalents – can hedge active currency risk of underling individual securities
• Target Net Long: 35% 45%; Maximum Net Exposure: 100%; Minimum Net Exposure: -20%

Invesco Macro International Equity Fund

Management team – Invesco Global Asset Allocation

Overview:

• Using a top-down investment strategy, the team will strive to add value and meet the investment objective of total return in three ways:
• Individual equity weights chosen on the basis of smart beta indices
• Strategic country/regional weights based on long-term valuation
• Tactical adjustments to country/regional weights
• Maintains net long exposures to each market – may sell exposure to a market via derivatives in order to decrease market exposure without selling individual securities
• Implements strategy through a combination of equity securities and derivatives that provide exposure to issuers in at least three different countries outside the US. The fund may hold up to a 100% of assets in foreign countries, including emerging market countries and may invest in companies of any market capitalization
• Target Net Long: 85-95%; Maximum Net Exposure: 125%; Minimum Net Exposure: 55%