Second quarter results for INVESCO's sterling based segregated balanced pension fund (ex property) showed a weighted average return of 1.18%, as compared to a CAPS median of 0.11%, putting INVESCO in the top quartile. Performance over a six month period is also strong, with INVESCO returning 6.41% compared to a CAPS median of 0.35%. Over a one year period, INVESCO delivered top decile performance by returning 18.11% versus CAPS median of 9.90%, an impressive 8.21% outperformance.
Annualised returns over a 2 and 3 year time period beat the balanced median by more than 4%, further consolidating INVESCO's position as a top quartile performer. Over a rolling three year basis, INVESCO has outperformed the balanced median for every quarter since the start of 1997.
Francesco Bertoni, head of balanced funds at INVESCO commented:
INVESCO's segregated performance is to 30.6.00. All returns are in£ Sterling. Performance against the CAPS balanced (ex Property) Median (47% CAPS Sample size). Source: CAPS (IMS)
INVESCO is one of the largest independent fund management groups in the United Kingdom. It is an integral part of AMVESCAP PLC, one of the largest independent fund management groups in the world. AMVESCAP's only business is investment management and the group has no links with other organisations providing financial services. As asset management represents 100% of it business activity, all efforts are directed towards providing the best in products and service to clients.
INVESCO's investment processes are focussed and well resourced. The team seeks and understands local investment opportunities through investment teams worldwide. The depth of INVESCO's resources at a local level is brought together within a global framework, combining local knowledge with a global understanding.
The principles of 'valuation and dynamics' are applied to INVESCO's global products. Firstly they establish what is the fair value of the equity and bond markets given economic conditions. Secondly, they work out what the shorter term influences would be on the price of these investments. This allows INVESCO to identify the long term value of any asset and what is going to affect its move towards this.
Valuation and dynamic elements are factored into a single estimated six-month return for each market. The Global Asset Allocation Committee checks the results for validity and ensures the strategies are consistent. Risk is accepted only when there is adequate reward. The success of the asset allocation process revolves around the way teams from around the world can communicate and agree policy quickly and with due regard for balancing opportunity with risk control.
As at 30/06/2000 INVESCO Global managed over£41.5bn, on behalf of public and corporate pension funds, institutions, retail clients and private clients. Assets under management are split between equities 75%, and fixed income (inc. cash) 25%. UK Balanced mandates form 3% of the total.