Invesco Macro Allocation Strategy

The Invesco Macro Allocation Strategy uses a flexible investment philosophy to construct a long/short directional strategy that targets a return of 8% above its benchmark (3M Euribor). The portfolio is constructed using strategic and tactical ranges. The strategic allocation (20% of the fund) recognises the positive long-term risk premia associated to owning equities, bonds and commodities, and targets a volatility of 3%. The remaining 80% is allocated to a tactical strategy that targets 8% volatility and is adjusted monthly to adapt to the prevailing market environment. The tactical range for each asset class can be long or short. Typically for stocks and commodities this range is +/-45% and for bonds is +/-110%. The tactical strategy allocates systematically based on an investment process that focuses on value, economic and sentiment based signals, combined with rigorous risk budgeting. The fund is manged by the Global Asset Allocation team based in Atlanta and is headed by CIO, Scott E. Wolle.