FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
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A Boat StoryBy Captain DeMoss
FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
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FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
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FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
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FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
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FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
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FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
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FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
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FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
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FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
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FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
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FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
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FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
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FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
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FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
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FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
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FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
Words matter…
It’s not what you say,
It’s what people hear.
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These words are shown for illustrative purposes only and do not constitute a recommendation of the suitability of any investment strategy for any particular investor.
How to have better conversations around complex investments (alternatives) withretail investors.
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Today’s presentation
Helping advisors get, keep and grow business
Maslansky + Partners word specialists
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Fox News CNN Meet the Press Hannity & Colmes Hardball The O’Reilly Factor
Research Methodology
Invesco Distributors, Inc. is not affiliated with Maslansky + Partners.
&
In-depthInterviews
Get conventional
language
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Research Methodology
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Dial sessions
Instantaneous, anonymousand simultaneous
In-depthInterviews
Get conventional
language
Research Methodology
26
Dial sessions
Instantaneous, anonymousand simultaneous
In-depthInterviews
Get conventional
language
Research Methodology
For illustrative purposes only.
100908070605040302010
0
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Dial sessions
Instantaneous, anonymousand simultaneous
In-depthInterviews
Get conventional
language
Research Methodology
For illustrative purposes only.
100908070605040302010
0
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Dial sessions
Instantaneous, anonymousand simultaneous
In-depthInterviews
Get conventional
language
National Survey
Validate findings
Research Methodology
For illustrative purposes only.
Approach… adjustments make a difference
L anguage… replacement words
and complementary phrases
Talking point… the portfolio manager
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Today’s agenda
7 Cards
Words to use, facing up
Words to lose, facing down
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Card exercise
Card images shown are for illustrative purposes only.
Approach… adjustments make a difference
L anguage… replacement words
and complementary phrases
Talking point… the portfolio manager
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Today’s agenda
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Approach
Lead by acknowledging the client’s personal goals1.
Three key adjustments to approach
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Approach | Language | Talking Point
Dial session: Investors’ reaction
For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor.
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Approach | Language | Talking Point
Dial session: Investors’ reaction
For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor.
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alternative investments
Approach | Language | Talking Point
Dial session: Investors’ reaction
For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor.
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Approach | Language | Talking Point
Dial session: Investors’ reaction
enhance your portfolios
For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor.
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Approach | Language | Talking Point
Dial session: Investors’ reaction
satellite
For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor.
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Approach | Language | Talking Point
Dial session: Investors’ reaction
Long-short, real estate, commodities, market neutral,
unconstrained, arbitrage
For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor.
alternatives
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Leading with
as an asset class…
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Approach | Language | Talking Point
Dial session: Investors’ reaction
For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor.
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Approach | Language | Talking Point
Dial session: Investors’ reaction
For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor.
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Approach | Language | Talking Point
Dial session: Investors’ reaction
you and your life
For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor.
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Approach | Language | Talking Point
Dial session: Investors’ reaction
tailored to you
For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor.
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Approach | Language | Talking Point
Dial session: Investors’ reaction
personalized as possible
For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor.
Begin with their goals
Approach | Language | Talking Point
A goals-based strategy
An outcomes-based strategy
A risk-based strategy
53%
34%
13%
A goals-based strategy
An outcomes-based strategy
A risk-based strategy
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For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor. Card images shown are for illustrative purposes only.
Which investment strategyis most appealing?
?
Not motivated by “treading water”
Approach | Language | Talking Point
Which would you rather invest in?An investment that helps…
22%
78%
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For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor. Card images shown are for illustrative purposes only.
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Approach
Lead by acknowledging the client’s personal goals1.
Three key adjustments to approach
The path to what’s new begins with what’s known…anchoring2.
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The Apple Experience
New or Known?
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53
54
Approach | Language | Talking Point
Which would you rather invest in?
Anchor to the known, not the new
42%58%
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For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor. Card images shown are for illustrative purposes only.
Alternative mutual funds that are bought and sold like any other fund
Liquidalternatives
Alternative mutual funds that are bought and sold like any other fund
Liquidalternatives
Approach | Language | Talking Point
Which would you rather invest in?
77%
23%
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For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor.
An establishedinvestment
option newly available to
individual investors
An establishedinvestment
option newly available to
individual investors
A brand new, innovative type of investment
A brand new, innovative type of investment
Approach | Language | Talking Point
What kind of investment product would you be most interested in hearing more about? One that is…
79%
21%
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For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor.
Ultra-high net worth investors
Institutional investors such as large college endowments and pension funds
Sophisticated investors
25%
48%
27%
Ultra-high net worth investors
Institutional investors such as large college endowments and pension funds
Sophisticated investors
Approach | Language | Talking Point
Which is more compelling? That a new investmentproduct had previously been available only to…
Don’t want hand-me-downs from the 1%
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For illustrative purposes only. This does not constitute a recommendation of any investment recommendation of any investment strategy for any particular investor.
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Approach
Lead by acknowledging the client’s personal goals1.
Three key adjustments to approach
The path to what’s new begins with what’s known…anchoring2.
The power of the “complement”3.
Replace some of the investmentsalready inyour portfolio
Complement the investments
already inyour portfolio
Replace some of the investmentsalready inyour portfolio
Complement the investments
already inyour portfolio
Complement, not replacement
Approach | Language | Talking Point
Which would you rather invest in? Newinvestments that are specifically designed to…
27%
73%
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For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor.
Complementary investments
Secondary investments
Satellite investments
64%
27%
9%
Complementary investments
Secondary investments
Satellite investments
Approach | Language | Talking Point
Which type of investments would you like tosupplement your core investments?
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For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor.
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Approach
Lead by acknowledging theclient’s personal goals1.
Three key adjustments to approach
The path to what’s new beginswith what’s known…anchoring2.
The power of the “complement”3.
Approach… adjustments make a difference
L anguage… replacement words
and complementary phrases
Talking point… the portfolio manager
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Today’s agenda
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Replacement words for industry jargon
These words are shown for illustrative purposes only and do not constitute a recommendation of the suitability of any investment strategy for any particular investor.
Historic volatility
Beta
Relative risk
35%
8%
57%
Historic volatility
Beta
Relative risk
Which is more important? The investment’s…
Approach | Language | Talking Point
65
For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor.
Offset
Hedge
Balance
17%
9%
73%
Offset
Hedge
Balance
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For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor. Card images shown are for illustrative purposes only.
Approach | Language | Talking Point
Which is more compelling?__________ your risks
?
Behaves independently
Is not reliant
Is non-correlated
59%
23%
18%
Behaves independently
Is not reliant
Is non-correlated
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For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor. Card images shown are for illustrative purposes only.
Approach | Language | Talking Point
Which best describes an investment that does not rise and fall with the markets?An investment that…
?
Market engagement
Exposure to the market
Participation in the market
25%
21%
53%
Market engagement
Exposure to the market
Participation in the market
Exposure = risk
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For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor. Card images shown are for illustrative purposes only.
Approach | Language | Talking Point
Which would you most be interested in?
?
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Invesco Roundtable with the High Net Worth
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For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor.
Approach | Language | Talking Point
40%60%
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For illustrative purposes only. This does not constitute a recommendation of any investment strategy for any particular investor. Card images shown are for illustrative purposes only.
Which word is preferable? The manager whodivides the investment into different…
Take a negative position in a stock
Profit from a stock’s price decline
Short a stock or security
11%
65%
24%
Take a negative position in a stock
Profit from a stock’s price decline
Short a stock or security
Approach | Language | Talking Point
Which is more important in reducing the impactof falling markets on your portfolio?
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For illustrative purposes only. This does not constitute a recommendation of any investment recommendation of any investment strategy for any particular investor.
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Complementary phrases for alternative strategies
These words are shown for illustrative purposes only and do not constitute a recommendation of the suitability of any investment strategy for any particular investor.
Portfolio complements
Non-traditional investments
Alternative investments
Goal-directed investments
37%
4%
9%
50%
Portfolio complements
Non-traditional investments
Alternative investments
Goal-directed investments
Approach | Language | Talking Point
Which would you rather invest in?
Offer clarity with complement phrases
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For illustrative purposes only. This does not constitute a recommendation of any investment recommendation of any investment strategy for any particular investor.
Equity funds that give up a little on the upside toget more protection on the downside
Funds that focus on more consistent returns
Long-short equity funds
25%
11%
Equity funds that give up a little on the upside toget more protection on the downside
Funds that focus on more consistent returns
Long-short equity funds
64%
Approach | Language | Talking Point
Which would you rather invest in?
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For illustrative purposes only. This does not constitute a recommendation of any investment recommendation of any investment strategy for any particular investor.
Unconstrained fixed-income funds
Go anywhere fixed-income funds
Fixed-income funds that allow managers more flexibility in how they invest
14%
68%
Unconstrained fixed-income funds
Go anywhere fixed-income funds
Fixed-income funds that allow managers more flexibility in how they invest
19%
Approach | Language | Talking Point
Which would you rather invest in?
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For illustrative purposes only. This does not constitute a recommendation of any investment recommendation of any investment strategy for any particular investor.
77FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
For illustrated purposes only.
Funds made up of multiple unique anddifferentiated strategies
A diversified portfolio of alternative funds
Multi-alternative funds
32%
14%
Funds made up of multiple unique anddifferentiated strategies
A diversified portfolio of alternative funds
Multi-alternative funds
54%
Approach | Language | Talking Point
Which would you rather invest in?
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For illustrative purposes only. This does not constitute a recommendation of any investment recommendation of any investment strategy for any particular investor.
Approach… adjustments make a difference
L anguage… replacement words
and complementary phrases
Talking point… the portfolio manager
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Today’s agenda
Selection
Specialty
Success
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Approach | Language | Talking Point
The Power of Alternatives
Selection
Specialty
Success
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Approach | Language | Talking Point
The Power of Alternatives
Approach | Language | Talking Point
If your advisor asked you to choose between the following alternative funds, which would you prefer? The alternativefund run by a team…
Carefully selectedfrom a well-researched list
Carefully handpicked
by me asyour advisor
64%
36%
Carefully selectedfrom a well-researched list
Carefully handpicked
by me asyour advisor
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For illustrative purposes only. This does not constitute a recommendation of any investment recommendation of any investment strategy for any particular investor.
Selection
Specialty
Success
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Approach | Language | Talking Point
The Power of Alternatives
A firm with more than 3000 investment professionals
A firm that specializes in
managing alternatives
A firm with more than 3000 investment professionals
A firm that specializes in
managing alternatives
Approach | Language | Talking Point
Which alternative fund would you rather invest in?The alternative fund run by…
27%
73%
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For illustrative purposes only. This does not constitute a recommendation of any investment recommendation of any investment strategy for any particular investor.
Selection
Specialty
Success
85
Approach | Language | Talking Point
The Power of Alternatives
A team recognizedas pioneersin alternatives
A team recognizedas industry
leaders in alternatives
A team recognizedas pioneersin alternatives
A team recognizedas industry
leaders in alternatives
Approach | Language | Talking Point
Which alternative fund would you rather invest in?The alternative fund run by…
22%
78%
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For illustrative purposes only. This does not constitute a recommendation of any investment recommendation of any investment strategy for any particular investor.
That has over 900 million dollars under management
That is well-known
With a long track record in alternatives
13%
16%
71%
That has over 900 million dollars under management
That is well-known
With a long track record in alternatives
Approach | Language | Talking Point
Which of the following teams would you most want towork with? An alternative fund managed by a team…
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For illustrative purposes only. This does not constitute a recommendation of any investment recommendation of any investment strategy for any particular investor.
Selection
Specialty
Success
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Talking Point
Approach… adjustments make a difference
L anguage… replacement words
and complementary phrases
Talking point… the portfolio manager
90
Today’s agenda
FOR US INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
The opinions expressed are those of the author and are subject to change without notice. These opinions may differ from thoseof other Invesco investment professionals.
All data created and produced by Invesco Consulting unless otherwise noted.
Diversification does not guarantee a profit or eliminate the risk of loss.
Alternative products typically hold more non-traditional investments and employ more complex trading strategies, including hedging and leveraging through derivatives, short selling and opportunistic strategies that change with market conditions. Investors considering alternatives should be aware of their unique characteristics and additional risks from the strategies theyuse. Like all investments, performance will fluctuate. You can lose money.
“The Power of Alternatives" is an evolution of Invesco Consulting's ”New Word Order” program, which is based on our firm's ongoing research with Maslansky + Partners. Invesco Distributors, Inc. is not affiliated with Maslansky + Partners.
This material is for illustrative, informational and educational purposes only. If the illustrations herein are used outside of the designated audience, it is the respective user's responsibility to ensure that such material complies with all applicable regulations and is filed with the appropriate regulatory bodies if so required. We make no guarantee that participation in thisprogram or utilization of any of its content will result in increased business. It does not constitute a recommendation of the suitability of any investment strategy for a particular investor.
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.
Invesco Consulting (I•C), wholly owned by Invesco, specializes in unique and creative ideas for financial professionals. Each ofour 25 compelling programs -- based on leading-edge research and organized into 5 sales consulting disciplines --are designed to help you turn your biggest challenges into opportunities. Whether you need to improve your communication skills with clients and prospects, build and maintain your high-net-worth client base, or master today's fast-changing retirement landscape, we have multiple programs tailored to fit your needs.
Our staff of 12 presenters, developers and support staff is dedicated to finding actionable answers to the unique challenges within financial services. Founded in 1998, I•C has helped more than 500,904 financial advisors, high net worth teams, variable annuity producers, retirement specialists and home office managers to get, keep and grow business through our speaking engagements from December 2001-December 2014.
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