INVESCO Unveils Three 130/30 Portfolios

April 16, 2007 (PLANSPONSOR.COM) - INVESCO's Global Structured Products Group has announced it has received mandates to fund three directional long-short products.

An INVESCO news release said the new strategies are designed to help clients gain additional alpha through the controlled use of shorting within their long-only portfolio. 

130/30-type strategies have received increased attention over the past year given their potential to increase alpha in the traditional long-only space, without an appreciable increase in risk (tracking error).

According to INVESCO, 130/30-type strategies can be managed at the country, region, or global level and can be flexible in style and capitalization focus, as well as the selected benchmark.

“These strategies are a natural bridge between our long-only portfolios and our market neutral capabilities which have been in use for 23 and 14 years, respectively,” said Russ Kamp, CEO of INVESCO’s Global Structured Products Group, in the news release.

According to the news release, the three INVESCO strategies that have been funded with a combined more than $515 million are:

  • A Large Cap Core Directional Long/Short that is benchmarked to the MSCI US index.
  • A Small Cap Core Directional Long /Short that is benchmarked to the S&P 600 index
  • A Large Cap Growth Directional Long/Short that is benchmarked to the Russell 1000 Growth index

Additional information is available at .