Invesco, a leader in low volatility investing, has expanded its innovative suite of low volatility products by introducing two mutual funds managed by its Invesco Quantitative Strategies team.
Effective July 31, 2013, the Invesco U.S. Quantitative Core Fund and Invesco Global Quantitative Core Fund were renamed and restructured, seeking to provide investors the opportunity to reduce risk and generate income without sacrificing total return. Invesco U.S. Quantitative Core Fund was renamed Invesco Low Volatility Equity Yield Fund, while the Invesco Global Quantitative Core Fund is now the Invesco Global Low Volatility Equity Yield Fund. The distribution frequency for both funds also was changed from annual to quarterly.
“A growing number of investors are looking to gain exposure to equity markets through products that may help preserve assets while providing income potential during this period when income can be hard to find, or what we like to call the Age of Income,” said Andrew Schlossberg, Head of US Retail Distribution and Global ETFs.
Invesco will leverage an experienced team in actively managing its first low volatility mutual funds. The Invesco Quantitative Strategies team has been managing low volatility strategies since 2005 using a more holistic, total return approach, seeking the benefits of a combination of price appreciation, low volatility and higher income.
“Low volatility investing is supported by considerable evidence over the last two decades across global and regional equity markets showing investors could have earned potentially higher returns by investing in lower risk stocks,” said Donna Wilson, Director of Portfolio Management for Invesco Quantitative Strategies, which manages approximately $23 billion1 in predominately institutional mandates.
The Invesco Low Volatility Equity Yield Fund and Invesco Global Low Volatility Equity Yield Fund provide greater depth and optionality to Invesco’s suite of low volatility products.
Invesco already offers an intelligently designed, passively managed approach to low volatility investing that seeks to track low volatility indexes. Invesco PowerShares, the leader in smartbeta3 exchange-traded funds (ETFs), manages approximately $5 billion2 in five ETFs focused on low volatility stocks:
- PowerShares S&P 500@ Low Volatility Portfolio (SPLV)
- PowerShares S&P International Developed Low Volatility Portfolio (IDLV)
- PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV)
- PowerShares S&P MidCap Low Volatility Portfolio (XMLV)
- PowerShares SmallCap Low Volatility Portfolio (XSLV)
“We’re committed to leveraging our global investment management capabilities to provide greater choice through active or passive management, mutual funds or ETFs to serve these investors,” Mr. Schlossberg said.