Invesco, one of the world’s largest independent investment management firms, with $1.5 trillion1 of assets under management, has announced plans to close its global targeted return strategy, subject to regulatory authorisation.
In February 2023, Invesco formed the Multi-Asset Strategies (MAS) Group, to simplify its product range, accelerate growth and develop a sense of community within the investment teams across the firm, creating one collaborative global investment function. This group encompasses capabilities across Multi-Asset, Systematic/Factor Investing, and the Solutions teams. Collaboratively, MAS brings together more than 180 people across 20+ offices dedicated to managing more than $145 billion on behalf of our clients across the globe (as of July. 31, 2023).
MAS has capabilities across multi-asset, alternatives, systematic, advisory and custom index businesses. For the UK specifically, Invesco believes client demand will continue for our outsourcing capabilities through the Summit ranges and Model Portfolio Services.
As Invesco looks to maximise the potential of the combined group of multi asset strategies and assess its range to serve current demand and the future needs of its clients, a strategic review was undertaken. This review concluded that current demand for targeted return strategies continues to diminish, as client needs have evolved. Invesco has therefore taken the decision to focus on other capabilities within its multi asset franchise, where we are seeing strong client demand.
Stephanie Butcher, Senior Managing Director and Co-Head of Investments at Invesco, says:
“Our global targeted return strategy has been a key pillar of investment for clients globally, since its launch in 2013 and has historically served clients well. We are immensely proud of the team and the contributions they have brought to the business over the past ten years and will continue to serve our clients as we move into a new era of multi-asset. However, demand has shifted and innovation in other areas is constantly evolving, so we have taken the difficult decision to close the global targeted return strategy.
“Within the MAS Group, some of the key focus areas of client interest are our Summit Growth and Summit Responsible ranges, Model Portfolio Service (MPS), along with tailored portfolios for institutional and retail clients, which our well-established Solutions team has offered globally since 2015.
“We will continue to look at product innovation and to leverage off the broad collaborative expertise we have across the global Investments platform. We are committed to our existing suite of multi asset products and remain focused on meeting strong demand in the wide range of capabilities we offer across the firm.”
Invesco launched the Summit Growth range in 2018 and the Summit Responsible range in 2021. The Invesco Model Portfolio service (MPS) launched in 2019 and the firm has been developing tailored solutions for retail and institutional clients globally since a dedicated Solutions team was established in 2015.
