Invesco Advisers is a massive, multinational investment corporation with offices around the world. Headquartered in Atlanta, it manages assets for institutional clients, while individuals use its wrap fee programs and investment funds.
Invesco receives a bevy of awards every year, typically in relation to its exchange-traded fund (ETF) and mutual fund offerings. However, the firm has also garnered industry recognition relating to corporate governance and other company functions. The firm's stock is part of the S&P 500 as well.
Invesco Background
Invesco was founded in 1986. Since its inception, the firm has grown into a world-class leader in the investment management business. The firm employs a team of nearly 1,000 advisors, many of whom hold advisory certifications. Martin L. Flanagan is Invesco's president and CEO. Invesco Advisers is under the ownership of Invesco Group Services, Inc., which is in turn owned by Invesco Ltd., its publicly traded parent company.
Invesco Client Types and Minimum Account Sizes
Invesco primarily works directly with institutional clients. These clients include banks, thrift institutions, pooled investment vehicles, investment companies, pension and profit-sharing plans, charities, state and municipal government entities, insurance companies, soverign wealth funds, corporations, separately managed accounts (SMAs), non-IVZ retail funds and the Invesco IVR. While the firm states that it works with individuals, these services are rendered indirectly through its wrap fee programs and investment funds.
Invesco runs a number of programs, and many of them require minimum investments. Its separately managed accounts for institutional clients typically require a minimum investment of between $50 million and $100 million. Real estate private funds have a minimum of $10 million and SMAs using real estate strategies have a minimum of $500 million. Wrap fee programs generally have minimums of $50,000 to $200,000, though dual contract wrap programs have a $1 million minimum. The firm may accept less than these minimums under certain circumstances.
Services Offered by Invesco
Invesco provides its clients with portfolio management services through a range of different programs. The firm uses SMAs, direct real estate SMAs, private funds and three different wrap fee programs. The firm provides its investment management services on both a non-discretionary and discretionary basis. There are several different investment centers or strategies that clients can utilize.
Invesco also provides more comprehensive investment management services through what it calls Invesco Investment Solutions. This involves a more in-depth and tailored approach to the portfolio-building and asset-allocation process.
Invesco Investment Philosophy
Whether a client is engaged in the Invesco Investment Solutions program or not, the firm and its advisors still look to work with clients to determine an investment approach and philosophy that works for them. Advisors take into account each client's desired investment strategies as well as any reasonable investment restrictions they may wish to impose.
Investors in Invesco's commingled funds, however, will not see their assets managed on an individual basis. Instead, the funds are managed according to their own strategy, meaning investors should seek out the fund that best reflects their needs and preferences.
Invesco and its advisors use a wide variety of investments to populate its clients' portfolios and funds. Each of its investment centers focuses on a specific investment strategy, such as fixed-income versus equity, growth versus conservative or global versus domestic. There are a total of 26 different investment centers at Invesco, many of which contain several different sub-strategies.
Fees Under Invesco
Invesco's fee schedules are a rough estimate and only apply to the first $100 million in AUM. These fees are based on an annual percentage of a client's total AUM. After $100 million, fee schedules are subject to change, so investors should contact the firm for more information.
Most strategies at Invesco have annual fees that range from 1 to 150 basis points. Some strategies only range up to 60 or 80 basis points. Quantitative strategies and fixed income factors are the only ones that range below 1, typically falling between 0.01 and 100 basis points.
Clients may also be charged fixed fees for investment management, with rates being negotiated on a case-by-case basis. Fees for wrap fee programs generally fall between 0% and 0.75% of AUM annually. Some accounts may take performance-based fees as well.
What to Watch Out For
Invesco lists seven regulatory disclosures on its Form ADV. Six of these disclosures are related to advisory affiliates of the firm, while one is attributed to it directly. The disclosure that relates to Invesco directly involves an issue where the firm allegedly failed to disclose certain arrangements it had made permitting the market timing of certain funds. This was considered a breach of fiduciary duty.
Certain client accounts at Invesco will be charged performance-based fees. The presence of these fees creates a potential conflict of interest, as the firm's advisors may have an incentive to make riskier or more speculative investment decisions. Despite this arrangement, the firm's fiduciary duty requires it to act in clients' best interests.
As a fee-based firm, certain advisors at Invesco may receive compensation from broker-dealer transactions. While this presents a potential conflict of interest, the firm still abides by its fiduciary duty.
Opening an Account with Invesco
If you're interested in opening an account with Invesco, you can call the firm directly at (404) 439-3221.
All information is accurate as of the writing of this article.
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