Invesco to close global targeted return strategy in push to simplify multi-asset range

Invesco is set to close its global targeted return strategy in a push to simplify its multi-asset product range, subject to regulatory authorisation. 

The closure follows a strategic review undertaken by the firm, which concluded that current demand for targeted return strategies had continued to diminish. 

This led to the decision to focus on other capabilities within its multi-asset franchise, where it said it was seeing "strong client demand". For the UK, Invesco said it expected client demand would continue for its outsourcing capabilities, through the Summit ranges and Model Portfolio Services.

The Invesco Global Targeted Returns fund was launched in September 2013, with the aim to achieve a positive total return in all market conditions over a rolling three-year period. 

Clive Emery departs from Invesco

The strategy holds £364.2m in assets and was managed by head of multi-asset Georgina Taylor and fund managers Richard Batty, Sebastian Mackay and Gwilym Satchell.

In the last five years, the strategy has returned 0.3%, while the Investment Association Targeted Absolute Return is up 9.6% over the same time period, according to FE Fundinfo.

In February this year, Invesco formed the Multi-Asset Strategies (MAS), which was set up in an effort to simplify its product range, accelerate growth and create "one collaborative global investment function". 

Taylor took over as head of the multi-asset team in March this year following the retirement of David Millar, with Clive Emery taking on the role of head of multi asset strategies. However, Emery, who had been at the company since 2015, left the firm in May.

MAS encompasses capabilities across multi-asset, systematic/factor investing, and the solutions teams, bringing together more than 180 people across over 20 offices, which manage more than $145bn for global clients. 

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Stephanie Butcher, senior managing director and co-head of investments at Invesco, said: "Our global targeted return strategy has been a key pillar of investment for client 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, she noted that demand has shifted and innovation in other areas is "constantly evolving", which is why the firm had taken the "difficult decision" to close the global targeted return strategy. 

The closure of Invesco's Global Targeted Returns strategy follows the announcement by abrdn this summer that the well-known Global Absolute Return Strategies (GARS) fund, a feel absolute return fund, would stop operating as a standalone vehicle and would be merged into the company's diversified asset funds.