UK – Invesco is targeting UK institutional investors with the launch of an enhanced index product.
The product is the first enhanced index product of Invesco to target the UK market, and will use the investment approach followed in the company’s US and European structured products tailored to UK institutional investors’ needs.
It aims to achieve a gross excess return of 1% relative to the FTSE All share index (ex Investment Trusts), with a tracking error of approximately 1.5%. In terms of investment style, the product will take a quantitative approach to fundamental investment concepts, and reduce exposure to style and sector effects and concentrate on delivering returns solely from stock selection.
“Our approach aims to provide a relatively modest level of outperformance to add value over purely passive strategies, combined with a highly structured risk controlled approach that can occur with more aggressive active approaches,” says Russ Kamp, head of product management team, Invesco Structured Products.
“We think that it will appeal both to actively invested clients who have been disillusioned by the high risk and poor returns that typical fundamental investors have generated over the last few years and to passively invested clients who want to get an alpha for their fund, but do not want significant risk,” continued Kamp.
Minimum account size is one million pounds (1.4 million euros) and fees are 0.2% per annum.
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