Invesco Balanced-Risk Allc E EUR Acc

Analyst Report
Morningstar's Take

by Matias Möttölä
A thoughtful research process, run by industry veterans, has ensured that the investment approach of Invesco Balanced-Risk has been fortified over time. The fund’s cheapest share classes earn a Morningstar Analyst Rating of Silver, while other shares are rated Bronze and Neutral.

CIO and lead portfolio manager Scott Wolle was promoted in 2019 as head of a new group that oversees asset allocation and factor-based strategies. This strategy remains one of his priorities, he actively contributes to it, and the team now benefits from a larger group of researchers. Wolle and four other of the six named managers have worked together since the strategy’s 2009 inception. The team includes 17 investment professionals in total and has experienced relatively little turnover, with just the third departure since inception in 2021.

The process starts with roughly equal-weight exposure (on a risk basis) to growth, defensive, and real return assets. The growth sleeve remains invested in equities and the real return sleeve in commodities, yet the team further diversified the defensive sleeve in 2021 by introducing put options and equity factors to complement bonds, based on research indicating that, in a low-yield environment, bonds protect the downside less effectively. Previous process enhancements include the exclusion of negative-yielding bonds.

The team applies measured tactical tilts, which have added value each full calendar year since inception at an annualised 1.4% clip. In 2022 through the end of November, the tactical sleeve had done worse than usual, with the market zigzagging and stocks and bonds both doing poorly. With only early-year bets on commodities giving meaningful positive contributions, the fund was deeply in negative territory for the year to date through November 2022. The fund’s diversification benefits have led to strong risk-adjusted returns compared with peers but falling short of the Morningstar Europe Moderate Global Target Allocation Index through the end of November 2022. This is not that surprising considering that commodities have brought a disappointingly small contribution to returns during the fund’s existence.
Morningstar Medalist Rating™A strong risk-balanced approach.
To find out how Morningstar rates a fund click here.
Morningstar Pillars
PeopleAbove Average
ProcessAbove Average
Morningstar Medalist RatingMorningstar assigns the Medalist Rating to funds that are qualitatively and quantitatively assessed through manager research and algorithmic processes. The assessment turns on three key “pillars” – People, Process, and Parent – that yield an estimate of how well a fund will perform before fees but after adjusting for risk.
Permissions/Reprints   E-mail Morningstar     
A fim de prover consistência para todos os relatórios fornecidos por diferentes Asset Managers, os data points calculados apresentados são gerados usando uma metodologia de cálculo proprietária da Morningstar, que pode ser conferida com mais detalhes em(
© Copyright 2023 Morningstar, Inc. Todos os direitos reservados.

Termos de Uso        Política Privacidade        Cookie Settings        Divulgações