Invesco PowerShares Capital Management has launched the PowerShares Multi-Strategy Alternative Portfolio (LALT) on The Nasdaq Stock Market.
LALT is an alternative strategy that is designed to offer investors attractive risk-adjusted returns with low correlation to traditional asset classes.
“In the current market environment, many investors are concerned about the potential effects of inflation, market volatility and correlation of assets on their portfolios,” says Andrew Schlossberg, Invesco managing director and head of US retail distribution and global ETFs. “Invesco has managed alternative assets in multiple formats for over 30 years, so we are uniquely positioned to offer an institutional calibre, time-tested strategy in a transparent and liquid vehicle.”
The PowerShares LALT strategy is designed to help investors reach their portfolio objectives by reducing the volatility of returns and mitigating the risk of drawdowns. To accomplish this, the fund employs a long-short strategy that seeks to provide a positive total return with low correlation to the broader securities markets through a cost efficient vehicle.
Invesco Advisers, the sub-adviser to the fund, selects investments for inclusion in the fund’s portfolio with reference to the components of the Morgan Stanley Multi-Strategy Alternative Index using a quantitative process that seeks to exceed the index’s performance, and delivers the strategy through a transparent and liquid vehicle.
“We are excited to partner with Invesco PowerShares to offer this innovative benchmark to the exchange traded market,” says Nikki Tippins, head of equity derivatives distribution for the Americas at Morgan Stanley. “We see increasing client interest in liquid alternatives solutions, and this vehicle gives investors a new opportunity to access Morgan Stanley’s established proprietary index platform.”