Invesco Launches Trust to Enhance Access to Private Real Estate for Retirement Plans

Invesco Broadens Access to Private Real Estate Investments for Retirement Plans

Invesco Ltd. enhances its offerings with the launch of the Invesco Core Plus Real Estate Trust, a collective investment trust (CIT) specifically designed for defined contribution (DC) plans. This innovative vehicle aims to make private real estate investment more accessible to retirement portfolios, catering to an increasing demand from plan sponsors and participants who seek diversified income sources. The trust facilitates exposure to core plus private real estate and includes allocations to passive U.S. Real Estate Investment Trusts (REITs). By providing a daily valued structure, Invesco aims to address the liquidity concerns typically associated with private market investments, thereby aligning with long-term retirement goals.

According to Greg Jenkins, Managing Director of DC Solutions at Invesco, DC plans have historically offered limited access to private market strategies, with less than 1% of allocations in this category. The introduction of the Core Plus Real Estate Trust signifies a substantial step toward expanding investment opportunities within DC plans, allowing participants to capitalize on private real estate’s potential benefits. Managed by Invesco Trust Company and advised by Invesco Advisers, Inc., this trust serves various plan types, including large DC plans and pooled employer plans (PEPs). Scott Dennis, Global Head of Private Markets, points out that the trust's framework is intended to provide institutional-grade real estate capabilities, catering effectively to the long-term needs of defined contribution investors.

Invesco also emphasizes its commitment to education and support for plan sponsors, offering research and insights to facilitate the incorporation of private market strategies into pension schemes. Invesco's recent Defined Contribution Participant Pulse Survey indicates that more than 85% of participants express openness to private market investments, underscoring the growing appetite for diversified investment strategies within retirement portfolios.

Furthermore, Invesco continues to innovate within the fixed income sector, recently launching four new exchange-traded funds (ETFs) to address persistent interest-rate uncertainties and evolving investor demands. These moves reflect Invesco’s understanding of the dynamic investment landscape and its commitment to providing sophisticated tools for investors navigating bond markets effectively.