Invesco has launched an ‘enhanced’ index fund for UK investors, aiming to outperform the S&P 500 at a similar level of risk.
The strategy is managed by George Elsaesser and Michael Rosentritt from Invesco’s quantitative strategies team, who will employ a systematic factor-based approach focused on identifying stocks with momentum, quality and value characteristics.
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It aims to outperform the S&P 500 Index net of fees over a rolling 5-year period, while keeping to a tracking error target of 1%.
Owen Thomas, head of UK wholesale at Invesco, said: “The launch of the US Enhanced Index fund has been driven by client demand and is the natural extension of our existing Enhanced Index range in the UK.
“We are always looking to develop innovative products to meet different investment objectives, and this product offers clients flexibility and choice when seeking an index like experience, whilst aiming to deliver excess returns relative to the benchmark.”
