|By PR Newswire||
|February 19, 2014 11:00 AM EST||
HOUSTON, Feb. 19, 2014 /PRNewswire/ -- Despite the growing proliferation of liquid alternative funds attracting considerable assets from investors, a recent study shows a vast majority of certain investors are not familiar with the term alternative investment.
In November of 2013 Invesco teamed with Cogent Research, a division of Market Strategies International1, to survey investors with at least $250,000 in investable assets and who work with a financial advisor. Among this target group, 77% were not familiar with the term alternative investment, and among the 23% who were, only 4 out of 10 were using them. The remainder of the research focused on the 23%, or 429 investors, who were familiar with alternative investments.
"While at least somewhat surprising given the amount of discussion about this topic, these survey results present a tremendous opportunity for Invesco and our industry to better educate investors on the potential benefits of liquid alternative investments in a balanced portfolio," said Andrew Schlossberg, Head of U.S. Retail Distribution. "Based on the changing dynamics of today's global economy and markets, we see a long-term, growing need for alternative investments as a complementary component in portfolio construction among financial advisors and individual investors."
The survey indicated only 10% of participants believe they have a relatively high level of understanding about alternative investments, and their descriptions of an alternative investment were very broad and non-descript. For example, approximately 5% named money market funds as an alternative investment.
"While alternative investments are not new to the investing landscape, their adoption into the retail marketplace is still in the very early stages and I think the definition of these products remains a work in progress," said Gary Wendler, Head of Product Development & Investment Measurement/Risk. "With greater education will come a better understanding and recognition of how liquid alternatives can help investors meet their financial goals while providing a potentially better risk profile."
Many investors may be overlooking the possibility that a diversified portfolio containing traditional investments and non-correlated alternatives can be an effective way to mitigate volatility and improve performance. In fact, 80% of survey participants who held alternative investments in their portfolios considered them more risky than traditional investments.
"Depending on an investor's goals and risk profile, alternatives can be recommended by financial advisors as a way to actually lower risk in a portfolio," Mr. Wendler said. "Whether investors are searching for additional yield, greater total returns or reducing their risk profile through diversification, we believe investors should consider the possibility that adding alternative investments to their portfolio may be a prudent decision."
11 Greenway Plaza, Suite 1000
Houston, TX 77046-1173
Given the need for greater education about alternative investments permeating from the survey's results, Invesco will be introducing a comprehensive approach to educating financial advisors on Invesco's extensive alternatives management experience, growing suite of liquid alternative capabilities, and how they might consider using them for the benefit of their clients through a program called Invesco Risk Institute.
The Invesco Risk Institute provides a three-pronged approach to risk management that includes a robust suite of advisor education opportunities, tactical implementation ideas and client education and communication tools. Through the Institute's holistic approach to risk awareness and management, advisors will gain access to Invesco's expertise in risk management, alternatives and client education.
"Through Invesco Risk Institute, we will be diligently working to equip our clients with the knowledge and tools they may need to accurately discuss alternatives so investors can make the most informed decisions in meeting their financial goals," Mr. Schlossberg said.
About Invesco Ltd.
Invesco Ltd. is a leading independent global investment management firm, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our clients around the world. Operating in more than 20 countries, the firm is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com.
1Market Strategies International acquired Cogent Research in May 2013
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Jul. 30, 2015 07:30 PM EDT Reads: 1,391
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Jul. 30, 2015 07:15 PM EDT Reads: 296
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
Jul. 30, 2015 06:30 PM EDT Reads: 884
Malicious agents are moving faster than the speed of business. Even more worrisome, most companies are relying on legacy approaches to security that are no longer capable of meeting current threats. In the modern cloud, threat diversity is rapidly expanding, necessitating more sophisticated security protocols than those used in the past or in desktop environments. Yet companies are falling for cloud security myths that were truths at one time but have evolved out of existence.
Jul. 30, 2015 06:00 PM EDT Reads: 1,798
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Jul. 30, 2015 05:00 PM EDT Reads: 1,086
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...
Jul. 30, 2015 04:00 PM EDT Reads: 2,198
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Jul. 30, 2015 03:45 PM EDT Reads: 445
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
Jul. 30, 2015 03:00 PM EDT Reads: 1,737
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Jul. 30, 2015 03:00 PM EDT Reads: 485
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with ...
Jul. 30, 2015 02:30 PM EDT
The Cloud industry has moved from being more than just being able to provide infrastructure and management services on the Cloud. Enter a new era of Cloud computing where monetization’s services through the Cloud are an essential piece of strategy to feed your organizations bottom-line, your revenue and Profitability. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed how to easily o...
Jul. 30, 2015 01:45 PM EDT Reads: 375
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Jul. 30, 2015 01:45 PM EDT Reads: 261
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
Jul. 30, 2015 01:30 PM EDT
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. The DevOps approach is a way to increase business agility through collaboration, communication, and integration across different teams in the IT organization. In his session at DevOps Summit, Chris Van Tuin, Chief Technologist for the Western US at Red Hat, will discuss: The acceleration of application delivery for the business with DevOps
Jul. 30, 2015 12:45 PM EDT Reads: 1,113
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, S...
Jul. 30, 2015 12:00 PM EDT Reads: 2,048