Invesco Wholesale Global Targeted Returns Fund. A unique approach to tackle today s investment challenges

Transcription

1 Invesco Wholesale Global Targeted Returns Fund A unique approach to tackle today s investment challenges

2 They say ideas come out of nowhere We say they can come from anywhere The Invesco Wholesale Global Targeted Returns Fund. Investing in ideas. This is a fund with ideas at its core. These ideas are not constrained by geography or asset class. Our investment team scours the earth to find the most potent ideas then blends them together with precision. The result is a highly diversified, risk-managed portfolio with the potential to benefit from the upside and minimise the downside. If this fits with what your clients are looking for, visit

3 A dynamic approach for uncertain times In a low yielding and increasingly uncertain environment, investors face mounting challenges in meeting their investment objectives: growing their capital while managing downside risks; achieving genuine portfolio diversification; and tapping into the best possible investment opportunities around the world. We are in unchartered waters and traditional investment approaches, with their constraints and limitations, may not be adequate to meet these challenges. A more suitable approach is the Invesco Wholesale Global Targeted Returns Fund ( Fund ), an innovative and dynamic solution that seeks to provide returns that behave independently of traditional markets. We believe this approach has the potential to help investors achieve positive returns in all market environments over a rolling three-year period. The Fund is an all weather solution that can help meet investors needs: Investment need Capital growth What the Fund offers Total return objective of cash 1 +5% p.a. (before fees) over rolling three-year periods, or equity-like returns over the long term. 1 as measured by the Bloomberg AusBond Bank Bill Index Capital stability Complementary investments Value for money Aims to deliver returns with less than half the volatility of global equities over the same rolling three-year periods. Invests in ideas from a variety of asset types within a single, highly diversified portfolio. Very competitive flat fee with no performance based fee. Access to money Know what you own Priced daily with daily liquidity. Clarity and certainty about what the Fund invests in. Trusted investment manager Invesco is a truly global asset manager listed on the New York Stock Exchange with more than A$1 trillion in assets under management. A differentiated, complementary solution Investor Invesco Wholesale Global Targeted Returns Fund The Invesco Wholesale Global Targeted Returns Fund s objectivesbased approach aims to provide a more consistent return profile through a genuinely diversified portfolio, which complements traditional investments. Currencies Government bonds Volatility instruments Equities Real estate Commodities Corporate bonds Inflation products Source: Invesco. For illustrative purposes only. 1

4 Harnessing the power of investment ideas An unconstrained research approach Ideas from any asset type, anywhere in the world The Fund is a portfolio of long-term, high conviction investment ideas. The simplicity and beauty of this approach is that it s all about finding good investment ideas (in any liquid market in the world) and using the most appropriate financial instrument to best express the idea. Unlike traditional investment approaches, the idea comes first, not the asset class. Currencies Commodities Equities Government bonds Corporate bonds Liberated from the need to invest in any single asset type, Invesco s UK-based Multi Asset team can invest in a broad spread of ideas that can come from a wide range of currencies, sectors, geographies, and asset types. This results in an extra layer of investment diversification over and above that found in the typical equity/bond mix. The team also has the flexibility to benefit from rising or falling markets. In products Volatility Alpha strategies Real estate Disciplined and robust risk management Blending ideas into a single risk-managed portfolio In managing the Fund, the Multi Asset team typically combines investment ideas in a single riskmanaged portfolio. Each idea is put through its paces research and approval, how to best combine the idea with others, how to implement the idea with an eye on not taking too much risk, and then reviewing and re-testing the idea for validity and durability in a range of market environments. The result is a well balanced portfolio where most of the ideas are expected to work most of the time. Access to global investment expertise In generating investment ideas, the team draws on specialist insights from Invesco s global network of investment centres to gain a variety of investment perspectives. Risk, compliance and trading teams ensure maximum rigor and discipline in the Fund s portfolio construction and implementation. Invesco s global network US and Canada Asia UK and Continental Europe Australia Countries Australia Bahamas Canada China France Germany Hong Kong India Japan Singapore Taiwan United Kingdom United States A premium investment team sitting within a specialist, global investment firm has been a key reason for the success of the Fund in terms of performance and building assets under management. 2

5 Targeting an attractive, diversified return profile Seeking a smoother investment journey By targeting capital growth (cash 2 plus 5% p.a. before fees) and strictly managing risk (less than half the volatility of global equities), the Fund can help build wealth while aiming to provide a smoother investment journey. As shown in the chart, the Fund can also help avoid large negative returns at the wrong time, a key risk for equity-biased investors near or in retirement. Global Targeted Returns strategy performance (cumulative, gross of fees) since inception in euro terms Invesco Global Targeted Returns (gross) Strategy Benchmark (EURIBOR 3M) 19 Sep Oct 2014 Global equities: -8.17% GTR strategy: -0.82% Strategy Objective (EURIBOR 3M + 5% p.a.) (gross) MSCI EUR Hedged (global equities) Jul Sep 2015 Global equities: % GTR strategy: -1.03% 1 Dec Feb 2016 Global equities: % GTR strategy: -0.68% Source: Invesco, data as at 30/04/17. Note: The Global Targeted Returns strategy is the underlying, Luxembourg-based portfolio into which the Invesco Wholesale Global Targeted Returns Fund invests. The chart compares the returns (before fees) of the Invesco Global Targeted Returns strategy in EUR against global equities (MSCI World Index (Net) - EUR Hedged); the Strategy Benchmark (EURIBOR 3M), the Strategy Objective (EURIBOR 3m +5% p.a. gross), and also shows the key negative equity market periods since inception of the strategy. 2 as measured by the Bloomberg AusBond Bank Bill Index. Past returns are not a reliable indicator of future returns. Future returns may be affected by a range of factors including economic and market influences. This performance data is shown before ongoing fees and assumes reinvestment of income. 3

6 Why Invesco s Multi Asset team? Active management by a team of global market experts Experienced A proven, long-term track record, including successfully managing this style of investment throughout the Global Financial Crisis. Dedicated Our 12 person team is solely focused on targeted return strategies. Reach The Multi Asset team manages approximately A$30 billion worldwide and benefits from the resources of a truly global asset manager with more than A$1 trillion under management. Pictured above (from left to right); David Millar, Head of Multi Asset and Fund Manager; Gwilym Satchell, Risk Manager; Dave Jubb, Fund Manager; Richard Batty, Fund Manager. Investing in the power of ideas through the Invesco Wholesale Global Targeted Returns Fund By investing in good ideas, worldwide, the Fund seeks out new opportunities to generate positive returns and improve diversification. In summary, the Fund is worth considering if you are looking for: Capital growth with smoother returns than global equities. Investment in ideas from a variety of asset types within a single risk-managed portfolio. A competitively priced fund with daily liquidity. 4

7 Tell me more Visit our dedicated microsite: Speak to your adviser Contact our Client Services team on Freecall , or What you need to consider before investing There are risks associated with investing in the Fund. Some of these risks and how these risks are managed are set out in the Fund PDS. You should obtain professional advice before deciding to invest in the Fund. The minimum suggested investment period for the Fund is at least 3-5 years. However, we recommend that you consider, with your financial adviser, the suggested investment period for the Fund in relation to your own investment timeframe. Important Information This document has been prepared by Invesco Australia Ltd (Invesco) ABN , Australian Financial Services Licence number , who can be contacted on freecall , by to or by writing to GPO Box 231, Melbourne, Victoria, You can also visit our website at This document contains general information only and does not take into account your individual objectives, taxation position, financial situation or needs. You should assess whether the information is appropriate for you and consider obtaining independent taxation, legal, financial or other professional advice before making an investment decision. A Product Disclosure Statement (PDS) for any Invesco fund referred to in this document is available from Invesco. You should read the PDS and consider whether a fund is appropriate for you before making a decision to invest. Invesco is authorised under its licence to provide financial product advice, deal in financial products and operate registered managed investment schemes. If you invest in an Invesco Fund, Invesco may receive fees in relation to that investment. Details are in the PDS. Invesco s employees and directors do not receive commissions but are remunerated on a salary basis. Neither Invesco nor any related corporation has any relationship with other product issuers that could influence us in providing the information contained in this document. Investments in the Invesco funds are subject to investment risks including possible delays in repayment and loss of income and principal invested. Neither Invesco nor any other member of the Invesco Ltd Group guarantee the return of capital, distribution of income, or the performance of any of the Funds. Any investments in the Funds do not represent deposits in, or other liabilities of, any other member of the Invesco Ltd Group. Invesco has taken all due care in the preparation of this document. To the maximum extent permitted by law, Invesco, its related bodies corporate, directors or employees are not liable and take no responsibility for the accuracy or completeness of this document and disclaim all liability for any loss or damage of any kind (whether foreseeable or not) that may arise from any person acting on any statements contained in this document. This document has been prepared only for those persons to whom Invesco has provided it. It should not be relied upon by anyone else. Copyright of this document is owned by Invesco. You may only reproduce, circulate and use this document (or any part of it) with the consent of Invesco. 5

8 This is a fund with ideas at its core. The Invesco Wholesale Global Targeted Returns Fund. Investing in ideas. Our Multi Asset investment team scours the globe for opportunity. For example, they were alert to a reforming Indian economy and an undervalued rupee. In the meantime, Chinese authorities were weakening the renminbi to stay competitive. They brought these two strands of thinking together and, with a little lateral thinking, implemented the idea with currency forwards, buying the rupee and selling the renminbi. The Fund blends innovative ideas like these. The result is a highly diversified, risk-managed portfolio, with the potential to benefit from the upside and minimise the downside. If your clients could benefit from this approach, visit