Video: How Can Absolute Return Strategies Fit In a Portfolio?

Walter Davis, Donna Wilson, and Danielle Singer from Invesco return for another video on absolute return strategies, this time focusing on how these strategies can fit into a portfolio. Mr. Davis sets off the discussion by asking Ms. Wilson what kind of returns can clients expect from an absolute-returns strategy. She says that the Invesco Quantitative Strategies Market Neutral Fund aims for “very attractive, positive returns in most environments” and that targets “investment-grade bond-like risk.” Ms. Singer says that her global macro fund actually has an explicit risk-reward target: “3-month Treasury bills plus 5% annually.” Understanding the risk-reward proposition of a strategy can help investors determine how to allocate to the strategy.

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