INVESCO Launches Three Directional Long-Short (130/30) Strategies
17 April 2007 - 12:30AM
PR Newswire (US)
Structured Products Utilizes 14-Year Experience in Long-Short
Capabilities NEW YORK, April 16 /PRNewswire/ -- INVESCO's Global
Structured Products Group has recently been awarded mandates to
fund three different directional long-short products. The new
strategies are designed to help clients gain additional alpha
through the controlled use of shorting within their long-only
portfolio. The team-managed portfolios will benefit from the
group's more than 14 years experience in shorting equities, dating
from the inception of its market neutral equity strategy in 1992.
"These offerings are in direct response to our plan sponsors' needs
and demands for higher alpha tied to the efficient use of capital,"
said Russ Kamp, CEO of INVESCO's Global Structured Products Group.
"We are excited about making these strategies available to clients
who are seeking enhanced alpha strategies while preserving the
strong risk control normally associated with our stock selection
strategies. These strategies are a natural bridge between our
long-only portfolios and our market neutral capabilities which have
been in use for 23 and 14 years, respectively." 130/30-type
strategies have received increased attention over the past year
given their potential to increase alpha in the traditional
long-only space, without an appreciable increase in risk (tracking
error). Plan sponsors are concerned about low return expectations
for large cap equities which represent one of the largest asset
allocations in their plan. 130/30-type strategies are managed
relative to a market benchmark and maintain the beta of the
underlying portfolio. However, all 130/30-type strategies are not
the same. These strategies can be managed at the country, region,
or global level and can be flexible in terms of style and
capitalization focus, as well as the selected benchmark. Most of
the funded strategies have been in the large cap core space. If
successful, these products have huge potential to capture
significant market share. The three INVESCO strategies that have
been funded with a combined more than $515 million are: -- A Large
Cap Core Directional Long/Short that is benchmarked to the MSCI US
index -- A Small Cap Core Directional Long /Short that is
benchmarked to the S&P 600 index -- A Large Cap Growth
Directional Long/Short that is benchmarked to the Russell 1000
Growth index For more than 23 years, the INVESCO Global Structured
Products Group has managed equity strategies using a fundamentally
based stock selection process with rigorous risk management in an
attempt to provide clients with consistent returns and high
information ratios. The 50+ member team manages $30 billion in
assets (as of December 31, 2006) from offices located in New York,
Boston, and Frankfurt. Additional information is available at
http://www.institutional.invesco.com/GSPG . INVESCO is part of
AMVESCAP, a leading independent global investment manager,
dedicated to helping people worldwide build their financial
security. Operating under the AIM, AIM Trimark, Atlantic Trust,
INVESCO, Invesco Perpetual, PowerShares and WL Ross & Co.
brands, AMVESCAP strives to deliver outstanding products and
services through a comprehensive array of enduring investment
solutions for our retail, institutional and private wealth
management clients around the world. The company is listed on the
London, New York and Toronto stock exchanges with the symbol "AVZ."
Additional information is available at http://www.amvescap.com/ .
DATASOURCE: INVESCO CONTACT: Bill Hensel, Media Relations for
INVESCO, +1-404-479-2886, fax +1-404-962-8238, Web site:
http://www.amvescap.com/ http://www.institutional.invesco.com/GSPG
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