In this video, Senior Client Portfolio Manager Danielle Singer discusses the Invesco Global Targeted Return Strategy. Ms. Singer is a multi-asset strategy specialist. From December 1981 to June 2014, stocks produced annualized returns of 11.8% while bonds grew by an average of 8.5%, but with far less volatility. Given these numbers, investors were basically able to get away with haphazard asset allocation over the 22.5-year period, since everything was basically going up. But what drove both stocks and bonds higher was the continued decline in interest rates, and that’s all about to change – hence the need for new strategies.
Ms. Singer recommends an absolute return and volatility objective for investors to help them achieve the growth they need with a tolerable level of risk. Her Invesco Global Targeted Return Strategy aims for returns that are 5% higher than 3-month Treasury yields, with volatility less than half that of global equities.