In a low return environment, every little extra, in performance terms, is important.
Our enhanced index funds look seek to deliver an index-like experience while outperforming their benchmark index, after fees, over a full market cycle.
There is no guarantee the funds will achieve their target and investors may not get back the full amount invested.
Finding the factors that make the difference between under- and over-performance – I think that’s the real skill we have in the team.
Targeted index outperformance
Proven process and approach
Strong, experienced investment team
Why consider our enhanced index funds?
More and more investors are using index funds in their investment portfolios due to cost considerations by some and the diversification benefits they can offer alongside more traditional strategies by others.
At Invesco Perpetual, we believe that by adding investment skill to index investing, we can deliver a better return for investors.
Our four enhanced index funds, focusing on UK, European, US and Global equities, offer a number of benefits and have the potential to make a valuable contribution to investors’ portfolios.
What is our investment approach?
Central to our approach is the identification of specific stock characteristics, or factors, which have been shown to be key drivers of a stock’s price in the past, and which provide the potential for the funds to outperform in the long term.
Every day we use a range of factors to rank over 3,000 stocks from the most to the least attractive. Together with an assessment of risk, we then build funds which share the broad characteristics of their index – creating an ‘index-like experience’ – but with the potential to outperform.
The factors we use are constantly evolving. The team work to continually stay ahead of the curve, either changing the composition of a factor or replacing it entirely.
Three decades of
With the investment landscape continually evolving, we think it’s reassuring to know that the team managing your investments have a long history of successfully managing enhanced index funds.
Based in five locations around the world, the pioneering Invesco Quantitative Strategies team bring with them a range of skills and in-depth local market knowledge to their core research and portfolio management functions.
Research: Responsible for maintaining and developing our quantitative models, as well as researching and analysing data to ensure the factors used are relevant to today’s markets.
Portfolio management: Responsible for constructing the funds, managing the trading costs and investment communication.
We take advantage of our global resources, our human capital, our intellectual capital and the various experiences that come with that.
- Glen Murphy, Global Head of Portfolio Management, Invesco Quantitative Strategies
The skill comes into what makes up our model, how we evolve it, the factors we’re using, how we change over time, the subtle nuances of the factors. That is our skill.
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. Past performance is not a guide to future returns.
The Invesco Perpetual Global ex UK Enhanced Index, UK Enhanced Index, US Enhanced Index and European ex UK Enhanced Index funds may use derivatives (complex instruments) in an attempt to reduce the overall risk of their investments, reduce the costs of investing and/or generate additional capital or income, although this may not be achieved. The use of such complex instruments may result in greater fluctuations of the value of the funds. The Manager, however, will ensure that the use of derivatives within the funds does not materially alter the overall risk profile of the funds.
All information as at 16 September 2016 unless otherwise specified.
Where Michael Fraikin, Alexander Uhlmann, Thorsten Paarmann and Glen Murphy have expressed opinions, they are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco/Invesco Perpetual investment professionals.
Where Invesco Perpetual has expressed views and opinions, these may change.
For the most up to date information on our funds, please refer to the relevant fund and share class-specific Key Investor Information Documents, the Supplementary Information Document, the Annual or Interim Short Reports and the Prospectus, which are available from the Literature section.