In January 2022, Invesco presciently told Insurance Asset Risk that a key investment agenda item for insurers would be "alternatives" – and so it seemingly came to pass.

The group had singled out equities, including hedged equities, as one possible area for increased demand from chief investment officers, whose direct equities grew €23bn, topping €1.1trn by September, while private equity funds expanded by €10bn to €85bn. Infrastructure investments blossomed.

Cases of chief investment officers adding to, committing to and looking into non-mainstream classes were legion – and Invesco was ready for it.

By July, the global manager had launched a European property debt fund, a $644m distressed credit and special situations opportunities in developed global markets, and a transition bond fund called Invesco Environmental Climate Opportunities Bond. It was furnishing insurers and other institutional investors in Europe with detailed analysis of alternative investment opportunities from private credit/direct lending to large buyout private equity, and property/infrastructure.

The group has over 150 alternative investment professionals and more than £145bn assets in the complexes, so is well placed to help insurers venturing ever more frequently off well-trodden investment paths.

The group was investigating and explaining to clients how 'alts' could help hedge off inflation risk, how best to integrate alternatives into another key theme for chief investment officers – namely ESG – and why in some alternatives classes it makes sense to look beyond one's own horizon and 'go global'.

The manager spoke of "injecting alternative thinking into the heart of [an] asset class", as a "mainstream manager thinking differently", whether a client's goal is to enhance income, diversify globally, or achieve other ends.