investment manager summary management · 2020. 8. 12. · investment manager summary management...
TRANSCRIPT
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Item No.6: Annual Presentation by Invesco – Active Commodities Manager (August 12, 2020,
Regular Retirement Board Meeting)
INVESTMENT MANAGER SUMMARY
MANAGEMENT
Firm Name Invesco Manager Tenure with Fund 7 years Investment Strategy/Vehicle Commodities
Contract Expiration Open Ended
ASSETS Total Firm AUM $1,145.2 Billion Total Firm Assets in Strategy $1.3 Billion
Total Assets Managed for WPERP RP - $111.4 Million HP - $17.7 Million
As of 06/30/2020
PERFORMANCE
as of 06/30/2020 1-Year 3-Year 5-Year Inception1 Invesco Balanced Risk Commodity Strategy (gross) -13.42% -3.38% -3.71% -6.13% Invesco Balanced Risk Commodity Strategy (est. net) -13.99% -4.00% -4.34% -6.72%
Bloomberg Commodity Index -17.38% -6.14% -7.69% -8.92%
Difference (net of fees) 3.39% 2.14% 3.35% 2.20% *1 Inception date of 09/1/2013
FEES
Current Fee 0.70% First $100 Million 0.55% Over $100 Million
WATCH STATUS
None
PREVIOUSLY DISCLOSED LITIGATION
None
Invesco Balanced-Risk Commodity Strategy
07/20 NA7207Invesco Advisers, Inc. is an investment adviser and does not sell securities. It is an indirect, wholly owned subsidiary of Invesco Ltd.
For one-on-one US institutional investor use only
All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This is being provided for informational purposes only, is not to be construed as an offer to buy or sell any financial instruments and should not be relied upon as the sole factor in any investment making decision. This should not be considered a recommendation to purchase any investment product. As with all investments there are associated inherent risks.
This does not constitute a recommendation of any investment strategy for a particular investor. Investors should consult a financial professional before making any investment decisions if they are uncertain whether an investment is suitable for them. Please read all financial material carefully before investing. For additional educational information about the strategy, contact Invesco. Past performance is not indicative of future results. This portfolio is actively managed. Portfolio holdings and characteristics are subject to change. The opinions expressed herein are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.
Investment products offered are Not FDIC Insured, May Lose Value, and are Not Bank Guaranteed.
The Los Angeles Water and Power Employees’ Retirement PlanAugust 12, 2020
Company Overview
Market Overview- The Case for Inflation
The Los Angeles Water and Power Employees’ Retirement Plan Performance Review
Fee Schedule
Additional Information and Disclosures
Glossary of Investment Terms
Table of contents
2 For one-on-one US institutional investor use only
Company Overview
For one-on-one US institutional investor use only
Depth of investment capabilitiesOur wide range of investment capabilities is designed to support a variety of financial objectives
Invesco offers a wide range of single-country, regional and global capabilities across major equity, fixed income and alternative asset classes, delivered through a diverse set of investment vehicles.
Equity Fixed Income and Money Market
Balanced Alternative
AUM: $544.9 B AUM: $372.2 B AUM: $60.9 B AUM: $167.2 B Market cap Investment style Global/regional/
single country Developed/emerging Sector Quantitative Directional long/
short (130/30)
Cash management Duration Sector Investment grade/
high yield Global/regional Developed/emerging Tax-free bonds
Active balanced Risk parity (risk premia
capture) Target maturity Target risk Traditional balanced
Absolute return – Market neutral– Multistrategy
Global macro Private equity
– Fund of funds– Buyout, emerging
Commodities
Financial structures– Bank loans– Credit arbitrage– Opportunistic
Real estate – Public real estate
securities– Private direct – US, Asian, European,
global
Source: Invesco Ltd. All data as of June 30, 2020. AUM figures include all assets under advisement, distributed and overseen by Invesco. Vehicles listed are available via indirect, wholly owned subsidiaries of Invesco Ltd. Not all investors are eligible to invest in each investment vehicle. Specific residency restrictions apply to offshore funds. Invesco’s variable insurance funds are used solely as investment vehicles by insurance company separate accounts to fund variable insurance products. Invesco Distributors, Inc. does not offer any variable products. For more information, contact your Invesco representative.
Institutional separate accounts
Collective trusts
Funds (open/closed end,on/offshore)
Exchange-traded funds (ETFs)
Unit investment trusts (UITs)
Private placements
Sub-advised Separately managed accounts/unified managed accounts
Variable insurance funds
Customized solutions
A wide range of investment capabilities
Delivered to investors through diverse investment vehicles
For one-on-one US institutional investor use only4
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Introduction
Delia M. Roges – Managing Director, Public Funds Sales & Service Team• Joined Invesco in 2011.• Over 20 years of institutional investment management experience.• Serves on the Board of Regents Loyola Marymount University and the Board of Visitors at the
School of Education at Loyola Marymount University.• Received her B.B.A. in Finance from Loyola Marymount University and her M.B.A. from the
University of Southern California.
Dave Gluch, CFA® – Client Portfolio Manager, Invesco Global Asset Allocation• Joined Invesco in 1995 and the Global Asset Allocation team in 2012.• He works with clients across global institutional and retail channels, and he is a frequent speaker
at industry conferences discussing the topics of asset allocation, commodities and risk management.
• Received his BBA in finance from the University of Texas. • He is a CFA charter holder.
For one-on-one US institutional investor use only
Invesco Global Asset AllocationInvestment strategies
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Research Focus
Risk Allocation and Management – balance risk exposures and create well-defined risk budgets
Purpose-built Portfolios –improve the expected Sharpe Ratio within asset classes
Tactical Allocation –emphasize attractive assets and de-emphasize unattractive assets
Asset Class Focus
Equities
Fixed Income
Commodities
Implement primarily with futures and other derivatives providing ample liquidity though will adjust where client outcomes require (e.g., income)
Source: Invesco as of 06/30/20. *Inception dates. **Total GAA assets include $1.7 billion managed in multi-asset portfolios and eliminates double counting. Assets subject to rounding and may not equal total.
Strategies
Multi-Asset Suite
Less Tactical
More Tactical
Balanced-Risk Allocation
(9/08)*$14.5 Billion
Global Allocation (1/14)*
$0.2 Billion
Macro Allocation
(9/12)*$0.5 Billion
Focused OutcomesInflation Income Factor
Balanced-Risk Commodities
(9/08)*$1.3 Billion
Multi-Asset Income(12/11)*
$2.1 Billion
Commodity Style Premia
(2/19)*$19 Million
Equity Suite
Defensive Growth Portable Alpha
US(12/17)*
$4 Million
Int’l(6/18)*
$42 Million
Global(6/18)*
>$1 Million
US Small Cap Index Plus
(9/19)*$134 Million
$20.3 Billion AUM**
For one-on-one US institutional investor use only
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Invesco Global Asset AllocationTeam summary
Source: Invesco. As of 06/30/20. 1Since Invesco Balanced-Risk Allocation inception 09/30/08. 2% of 5 key strategies that each team member invests in. indicates all strategies, indicates none of the strategies.
Low TurnoverLong TenureDeep, Experienced Team
9
9
18
Research & PMCPM, Implementation, Business Support
24 24 24
Total Team Research & PM CPM,Implementation,
Business Support
Member RoleStrats
Owned2Yrs ExpTtl / IVZ
Scott Wolle CIO 29 / 21
Mark Ahnrud Sr. PM 35 / 20
Chris Devine Sr. PM 23 / 22
Scott Hixon Sr. PM,Hd of Research 28 / 26
Christian Ulrich Sr. PM 33 / 20
17 1618
Total Team Research & PM CPM,Implementation,
Business Support
5
6 2
9
Research &PM @
Inception
AddedResources
Lost Resources Current
4
1 0 5
Sr. PM @Inception
AddedResources
LostResources
Current
Research & PM Changes1Team Members Years with Invesco
Senior PM Changes1Average Experience Senior Portfolio Managers
For one-on-one US institutional investor use only
Invesco Global Asset AllocationKey Invesco contacts
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Source: Invesco. As of 06/30/20.
Delia Roges Mark Ahnrud, CFAManaging Director, Invesco Public Funds Senior Portfolio Manager, Invesco Global Asset Allocation101 California Street, Suite 1800 1555 Peachtree Street, NESan Francisco, CA 94111 Atlanta, GA 30309415-445-3388 404-439-3392
Dave Gluch, CFA Scott Wolle, CFAClient Portfolio Manager, Invesco Global Asset Allocation Chief Investment Officer, Invesco Global Asset Allocation11 Greenway Plaza, Suite 1000 1555 Peachtree Street, NEHouston, TX 77046 Atlanta, GA 30309713-214-7994 404-439-3064
Michael McHugh, CFAClient Portfolio Manager, Invesco Global Asset Allocation11 Greenway Plaza, Suite 1000Houston, TX 77046713-214-4861
George AveryClient Portfolio Manager, Invesco Global Asset Allocation1555 Peachtree Street, NEAtlanta, GA 30309404-439-3460
For one-on-one US institutional investor use only
Market Overview
For one-on-one US institutional investor use only
Case for InflationHigher deficit means more debt
•Source: Invesco. 1981 to 2019 For illustrative purposes only.
10For one-on-one US institutional investor use only
Borrowing
Crowds out private sector borrowing and investment
From Non-Banks From Banks*
No increase intotal spending:
non-inflationary
Increase in total spending:
inflationary
Printing Money
Boosts total spending including govt. spending
Central Bank buys bonds in primary
market
Interest rates and/or FX too low
Increase in total spending:
inflationary
Increase in total spending:
inflationary
Three ways to finance a budget deficit
Source: Invesco Global Economics research.*Can also be considered a form of printing money. For illustrative purposes only.
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Taxation
Crowds out private sector spending
Transfer of Spending From Private Sector to Public Sector
No increase in total spending:
non-inflationary
Case for InflationLow commodity prices are the cure for low prices
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• Bear markets lead to lower production and capital investment needed to find new sources of supply
• Maturing geology results in higher production costs and lower grade output
• Regulation has extended the time required before new production can come on line
• A deglobalized world reorders supply chains and increases geopolitical risk. Commodities are mostly produced in politically unstable parts of the world.
Asset Classes and the Economic EnvironmentDirectional impact due to changes in growth and inflation
Impact of Rising Growth
Impact of Rising Inflation
Stocks
Nominal High Grade Bonds
Commodities
Sources: Datastream, Invesco analysis. Period covered: 12/31/1969 – 06/30/2020.13 For one-on-one US institutional investor use only
Invesco Balanced-Risk Commodity StrategyRepresentative commodity performance returns
Sources: Bloomberg L.P., GSCI and Invesco analysis. Data as of 06/30/20 based on continuous future return indices. Commodities represented by the S&P GSCI sub-indices. Past performance is not a guarantee of future results.
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Industrial MetalsEnergyAgriculture Precious Metals
For one-on-one US institutional investor use only-35-25-15-55
15253545
2019 (%)
For one-on-one US institutional investor use only
-80-70-60-50-40-30-20-10
0102030
YTD 2020 (%)
The Los Angeles Water and Power Employees’ Retirement Plan Performance Review
For one-on-one US institutional investor use only
Invesco Balanced-Risk Commodity StrategyL.A. Dept. of Water & Power Emp. Ret. Plan Performance history
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Sources: DataStream and Invesco analysis. *Portfolio performance inception: 08/22/13. 1Bloomberg Commodity Index. Past performance is not a guarantee of future results. Performance shown are gross of fee, net of fee returns will be lower. Returns for less than one year are not annualized. Water & Power’s combined account fee schedule is 70 bp on the first $100mm and 55 bp thereafter. Data as of 06/30/20.
12.97
-15.74-13.42
-3.38 -3.70-5.87
12.78
-16.04-14.02
-4.02 -4.36-6.52
5.08
-19.40-17.38
-6.14-7.69 -8.75
-25
-20
-15
-10
-5
0
5
10
15
Q2 2020 YTD 1 Year 3 Year 5 Year *SinceInception(08/22/13)
Ret
urn
(%)
LADW&P Employees Retirement Plan Gross LADW&P Employees Retirement Plan Net
Bloomberg Commodity Index
Total account summary
Month/Year
Market Value ($)
Portfolio (Gross %)
Portfolio (Net %)
Benchmark (%)
06/2020 111,424,071 4.87 4.81 2.28
05/2020 106,254,212 6.55 6.49 4.34
04/2020 99,723,863 1.10 1.05 -1.54
03/2020 98,635,472 -16.18 -16.24 -12.81
02/2020 117,682,322 -4.31 -4.37 -5.04
01/2020 122,988,230 -7.00 -7.05 -7.36
12/2019 132,239,557 4.29 4.24 5.04
11/2019 126,797,600 -1.27 -1.33 -2.56
10/2019 128,430,187 1.83 1.78 2.02
09/2019 126,117,355 0.32 0.27 1.17
08/2019 125,709,208 -1.91 -1.97 -2.32
07/2019 128,158,089 -0.42 -0.48 -0.67
Performance table (%)
Period Portfolio Gross (%)
Portfolio Net (%)
Benchmark (%)
Excess Gross Return (%)
Excess Net Return (%)
Q2 2020 12.97 12.78 5.08 7.89 7.70
YTD -15.74 -16.04 -19.40 3.66 3.36
1 Year -13.42 -14.02 -17.38 3.96 3.36
3 Year -3.38 -4.02 -6.14 2.76 2.11
5 Year -3.70 -4.36 -7.69 3.99 3.33
*Since Inception (08/22/13) -5.87 -6.52 -8.75 2.88 2.23
Performance chart (%)
For one-on-one US institutional investor use only
Invesco Balanced-Risk Commodity Strategy L. A. Dept of Water & Power Health Benefits Fund Performance history
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Sources: DataStream and Invesco analysis. *Portfolio performance inception: 08/21/13. 1Bloomberg Commodity Index. Past performance is not a guarantee of future results. Performance shown are gross; net of fee returns will be lower. Returns for less than one year are not annualized. Water & Power’s combined account fee schedule is 70 bp on the first $100mm and 55 bp thereafter. Data as of 06/30/20.
12.78
-15.91-13.56
-3.46 -3.79-5.99
12.46
-16.26-14.16
-4.03 -4.34-6.52
5.08
-19.40-17.38
-6.14-7.69 -8.75
-25
-20
-15
-10
-5
0
5
10
15
Q2 2020 YTD 1 Year 3 Year 5 Year *SinceInception(08/21/13)
Ret
urn
(%)
LADW&P Health Benefit Gross LADW&P Health Benefit Net Bloomberg Commodity Index
Total account summary
Month/Year
Market Value ($)
Portfolio (Gross %)
Portfolio (Net %)
Benchmark (%)
06/2020 17,692,478 4.90 4.85 2.28
05/2020 16,866,446 6.65 6.45 4.34
04/2020 15,814,494 0.81 0.76 -1.54
03/2020 15,687,996 -16.16 -16.20 -12.81
02/2020 18,711,809 -4.36 -4.40 -5.04
01/2020 19,564,952 -7.01 -7.05 -7.36
12/2019 21,039,732 4.28 4.23 5.04
11/2019 20,175,594 -1.57 -1.62 -2.56
10/2019 20,497,297 1.94 1.90 2.02
09/2019 20,106,340 0.37 0.32 1.17
08/2019 20,031,889 -1.74 -1.79 -2.32
07/2019 20,387,414 -0.39 -0.44 -0.67
Performance table (%)Period Portfolio
Gross (%)Portfolio Net (%)
Benchmark (%)
Excess Gross Return (%)
Excess Net Return (%)
Q2 2020 12.78 12.46 5.08 7.70 7.38
YTD -15.91 -16.26 -19.40 3.49 3.14
1 Year -13.56 -14.16 -17.38 3.82 3.22
3 Year -3.46 -4.03 -6.14 2.68 2.10
5 Year -3.79 -4.34 -7.69 3.90 3.35
*Since Inception (08/21/13) -5.99 -6.52 -8.75 2.76 2.23
Performance chart (%)
For one-on-one US institutional investor use only
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Source: Invesco analysis. Data as of 06/30/20. Note: Returns are gross of fees; net returns will be lower. Past performance is not a guarantee of future results.
Invesco Balanced-Risk Commodity StrategyPerformance attribution
1 year absolute attribution (gross %) 1 year relative attribution to BCOM (gross %)
YTD 2020 absolute attribution (gross %) YTD 2020 relative attribution to BCOM (gross %)
For one-on-one US institutional investor use only
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Source: Invesco analysis. Data as of 06/30/20. *Portfolio performance inception: 08/22/13 **Portfolio performance inception: 08/21/13. Note: Returns are gross of fees; net returns will be lower. Past performance is not a guarantee of future results.
Invesco Balanced-Risk Commodity StrategyPerformance attribution
Since inception return attribution (gross%)LADW&P Retiree Health Benefits Plan**
Since inception relative attribution to BCOM (gross%)LADW&P Retiree Health Benefits Plan**
Since inception return attribution (gross %)LADW&P Employees’ Retirement Plan*
Since inception relative attribution to BCOM (gross%)LADW&P Employees’ Retirement Plan*
For one-on-one US institutional investor use only
Invesco Balanced-Risk Commodity StrategyAsset growth
20
Portfolio Changes(LADW&P Employees’ Retirement Plan)
Amount
Initial Value Invested as of 8/22/13 $104,000,000
Net Additions/(Withdrawals) $47,000,000
Income Received $0
Investment change $(39,575,929)
Market Value as of 6/30/20 $111,424,071
Portfolio Changes(LADW&P Retiree Health Benefits Fund)
Amount
Initial Value Invested as of 8/21/13 $18,499,898
Net Additions/(Withdrawals) $6,500,000
Income Received $0
Investment change $(7,307,420)
Market Value as of 6/30/19 $17,692,478
Source: Invesco, DataStream. Past performance is not indicative of future results. All data as of 06/30/20.
For one-on-one US institutional investor use only
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
1/1/1975
7/1/1976
1/1/1978
7/1/1979
1/1/1981
7/1/1982
1/1/1984
7/1/1985
1/1/1987
7/1/1988
1/1/1990
7/1/1991
1/1/1993
7/1/1994
1/1/1996
7/1/1997
1/1/1999
7/1/2000
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7/1/2003
1/1/2005
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7/1/2009
1/1/2011
7/1/2012
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7/1/2015
1/1/2017
7/1/2018
1/1/20205
Year
Ann
ualiz
ed E
xces
s R
etur
n
10 years, 10 months
11 years, 5 months
11 years, 9 months
GSCI Light Energy: Rolling 5-Year Annualized Returns above Cash
Sources: Datastream, Invesco analysis. Period covered: 12/31/1969 – 06/30/2020.
Asset Classes and the Economic EnvironmentThe long commodity cycle
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• The commodity cycle tends to be long, reflecting the time it takes to adjust the balance between supply & demand
• The best cure for low commodity prices is low commodity prices
• Equities have enjoyed a long run following the GFC and bond yields are close to 40 year lows, while commodities remain near a trough in the latest cycle
For one-on-one US institutional investor use only
Invesco Balanced-Risk Commodity StrategyAsset allocation versus the Bloomberg Commodity Index
Sources: Invesco analysis and Bloomberg. Past allocations are not a guarantee of future allocations. Data as of 06/30/20.
Invesco Active WeightStrategic Tactical Total Bloomberg
Agriculture/Livestock 35.48% -1.82% 33.66% 36.18% -2.52%Cocoa 0.09% 3.04% 3.13% 0.00% 3.13%Coffee 2.01% -1.26% 0.75% 2.56% -1.81%Corn 2.76% -3.15% -0.39% 5.94% -6.33%Cotton 7.64% -0.62% 7.02% 1.48% 5.54%Lean Hogs 0.20% -2.72% -2.52% 1.76% -4.28%Live Cattle 0.18% 0.10% 0.27% 3.80% -3.53%Soybean 7.41% 0.98% 8.39% 6.03% 2.36%Soybean Oil 1.87% 0.23% 2.20% 2.75% -0.55%Soymeal 7.73% 0.78% 8.51% 3.72% 4.79%Sugar 3.22% 0.78% 4.00% 2.90% 1.10%Wheat 2.37% 0.19% 2.55% 3.46% -0.91%Kansas Wheat 0.00% -0.22% -0.27% 1.77% -2.04%
Energy 27.29% -5.90% 21.40% 22.96% -1.56%Gas Oil 3.53% -0.64% 2.90% 1.49% 1.41%Natural Gas 2.53% -3.83% -1.30% 8.22% -9.52%Brent Crude Oil 7.15% -0.26% 6.89% 4.71% 2.18%WTI Crude Oil 3.69% -0.29% 3.40% 5.56% -2.16%Heating Oil 3.12% -0.60% 2.52% 1.30% 1.22%Unleaded Gasoline 7.27% -0.28% 6.99% 1.69% 5.30%
Industrial Metals 19.59% 1.52% 21.11% 18.07% 3.04%Aluminum 7.88% -4.52% 3.36% 4.41% -1.05%Copper 11.71% 3.47% 15.18% 7.26% 7.92%Nickel 0.00% 1.50% 1.50% 2.92% -1.42%Zinc 0.00% 1.06% 1.06% 3.48% -2.42%
Precious Metals 17.64% 8.89% 26.53% 22.79% 3.74%Gold 12.30% 6.17% 18.77% 18.22% 0.55%Silver 5.03% 2.72% 7.76% 4.57% 3.19%
Grand Total 100.00% 2.70% 102.70% 100.00% 2.70%
22 For one-on-one US institutional investor use only
Fee Schedule
For one-on-one US institutional investor use only
Water and Power Employees’ Retirement PlanFee Schedule
24
• Management Fee:o 70 basis points on the first $100 milliono 55 basis points thereafter
For one-on-one US institutional investor use only
Additional Information and Disclosures
For one-on-one US institutional investor use only
Invesco Disclaimer
26
For one-one-one Institutional Investor use only. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This is not to be construed as an offer to buy or sell any financial instruments and should not be relied upon as the sole factor in an investment making decision. As with all investments there are associated inherent risks. Please obtain and review all financial material carefully before investing. Past performance is not indicative of future results. This does not constitute a recommendation of the suitability of any investment strategy for a particular investor. The opinions expressed herein are based on current market conditions and are subject to change without notice.
Derivatives RiskThe Invesco Balanced-Risk Commodity Strategy invests (directly or indirectly) a substantial portion of its assets in "derivatives"–so-called because their value "derives" from the value of an underlying asset (including an underlying security), reference rate or index–the value of which may rise or fall more rapidly than other investments. The strategy invests principally in exchange-traded futures across a diverse mix of commodity assets. The Invesco Balanced-Risk Commodity Strategy is a long-only strategy, so the portfolio will hold no net short positions at any time. For some derivatives, it is possible to lose more than the amount invested in the derivative. If the portfolio uses derivatives to "hedge" a portfolio risk, it is possible that the hedge may not succeed. This may happen for various reasons, including unexpected changes in the value of the rest of the portfolio. Over the counter derivatives are also subject to counterparty risk, which is the risk that the other party to the contract will not fulfill its contractual obligation to complete the transaction with the portfolio.
Leverage RiskThe Invesco Balanced-Risk Commodity Strategy employs leverage as a fundamental element within the investment strategy. The implementation of the strategy requires the use of derivatives and other leveraged instruments to create and adjust exposure to commodities. The use of derivatives facilitates the ability to create the desired level of leverage in the portfolio. Leverage may cause the portfolio to be more volatile than if the portfolio had not been leveraged because leverage can exaggerate the effect of any increase or decrease in the value of securities held by the portfolio.
For one-on-one US institutional investor use only
Glossary of Investment Terms
For one-on-one US institutional investor use only
Backwardation. A status where prices of futures contracts with a longer maturity are lower than the spot price of the commodity.
Contango. A status where prices of futures contracts with a longer maturity are higher than the spot price of the commodity.Front Month. Used in futures trading to refer to the contract month with an expiration date closest to the current date, which is often in the same month.
Futures Contract. A financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and price. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange.
Optimal Roll. Optimizing the roll yield by choosing the most attractive futures contract.
Roll Yield. The amount of return generated in a backwardated futures market that is achieved by rolling a short-term contract into a longer-term contract and profiting from the convergence toward a higher spot price.
Spot Price. The current price at which a particular security can be bought or sold at a specified time and place. A security's spot price is regarded as the explicit value of the security at any given time in the marketplace.
Standard Deviation. Standard deviation measures a fund’s range of total returns and identifies the spread of a fund’s short-term fluctuations.
Term Structure. Term Structure of futures contracts refers to the price curve formed by the prices of futures contracts over various expiration months.
28
Glossary of Investment Terms
For one-on-one US institutional investor use only
Thank you
Invesco Advisers, Inc. is an investment adviser and does not sell securities.