Private capital can be vital in meeting net zero emissions goals. This includes infrastructure debt which can be an attractive way for investors to achieve their long-term return and income objectives and at the same time, help finance the assets needed urgently to support the transition to a low-carbon economy.

Invesco Investment Solutions develops capital market assumptions (CMAs) that provide long-term estimates for the behaviour of major asset classes globally. The assumptions, which are based on a 10-year investment time horizon, are intended to guide strategic asset allocations.

Debt and demographic restraints on the global economy and the deepening U.S.-China rivalry may subdue equity returns while rising interest rates should support above-average bond performance, especially compared to the past 10 years. Download our Capital Market Assumptions 10-Year Outlook: 2024 Edition to explore our return…

Can Generative Adversarial Networks (GANs) forecast financial time-series data? Milena Vuletić Postgraduate Student at the Oxford-Man Institute of Quantitative Finance shares her research findings.

Explore key highlights and return forecasts for the next decade: impact of climate delays, AI gains, and valuations on asset class profiles.

Across a diverse set of global equities and multiple market capitalizations, we conducted an analysis of 32 distinct long-only factors, including momentum, value, growth, quality, and the market. Notably, momentum demonstrated exceptional performance, surpassing the respective market return in 100% of the samples.…

While portfolio construction approaches have most often been considered two-dimensional (incorporating risk and return), investing has historically been a multi-dimensional endeavor, with sustainability the latest addition to multi-objective investing. This research paper introduces a multi-objective investment framework and…

Higher for longer’ interest rates mean global real estate markets are negotiating a new paradigm. Investors can no longer rely on value growth to drive performance, but could other return drivers compensate? We explore the stand-out opportunities and potential traps that need to be factored in.

Invesco Investment Solutions develops capital market assumptions (CMAs) that provide long-term estimates for the behaviour of major asset classes globally. The assumptions, which are based on a 10-year investment time horizon, are intended to guide strategic asset allocations.

This paper lies at the intersection of quantitative analysis and probability theory. Using top- level ex-ante metrics, Axioma first provide a framework for classifying the nature of the investment opportunity provided by a portfolio within the context of portfolio selection. They then propose a framework for risk budgeting…

Income can play a crucial role in the pursuit of investment objectives over time, but research from our iStrat Team argues for a balanced approach to asset allocation decisions given the potential trade-offs between income and capital return, risk, and portfolio diversification.

With lower expectations for return-seeking assets, investors seek diversification and risk mitigation strategies that don’t compromise growth potential.

Traditional equity mandates can be rigid, and adjusting positions to meet this goal can be challenging, but integrating a modest alternatives allocation provides…

Bruce Feibel of State Street provides a primer that covers vital aspects of the alternative investment performance measurement process. Analysts need to carefully consider, and sometimes modify, the return calculations, ex post risk measurement, and performance presentation methods used in traditional investment performance…

Higher real rates may persist for 5 to 10 years. This likely would increase the cost of capital, which in turn could reduce the return advantage for stocks versus bonds, boost prospects for larger companies with high-quality earnings.

Vanguard researchers present a framework to help investors choose the most efficient rebalancing method in terms of risk, return, and costs.

Portfolio management is all about trading off expected return and risk. The key ingredient to measuring and managing portfolio risk is the variance-covariance (VCV1) matrix which needs to be estimated for the given investment universe.