Invesco Global Targeted Returns Fund Frequently asked questions

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1 Invesco Global Targeted Returns Fund Frequently asked questions August 2017 This marketing document is exclusively for use by Professional Clients and Financial Advisers in Continental Europe (as defined in the important information) and Ireland, Qualified Investors in Switzerland and Professional Clients in Dubai, Jersey, Isle of Man, Malta, Cyprus and the UK. This document may also be used by financial intermediaries in the United States as defined in the important information. This document is not for consumer use, please do not redistribute. Fundamental research-driven investing has long been synonymous with Invesco Perpetual s investment centre in Henley-on-Thames, UK. The Henley-based Multi Asset investment team led by David Millar draws on this rich seam of investment ideas and adds its own extensive experience and proven capability to develop and implement risk-managed portfolios. The Invesco Global Targeted Returns Fund aims to achieve a positive total return in most market conditions over a rolling 3-year period. The fund targets a gross return of 5% p.a. above 3-month EURIBOR (or an equivalent reference rate) and aims to achieve this with less than half the volatility of global equities, over the same rolling 3-year period. There is no guarantee that these targets will be achieved. Alpha strategy investments What is the breakdown of ideas expressed through sleeves of other Invesco or Invesco Perpetual strategies and ideas expressed through derivatives? Six investment ideas are sleeve-based. However, an investment idea can be expressed through more than one investment instrument. At present, all sleeve-based investment ideas also make use of derivatives. For the Equity UK investment idea, for example, the investment team gains exposure to two of our own strategies. However, the investment team has part-hedged the beta exposure by selling FTSE 100 and Russell Mid 150 index futures against the holdings in the sleeve to isolate the fund managers alpha, given the directional risks seen in the equity markets. In addition, the investment team may also reduce potential drawdowns by implementing option structures or buying volatility that could reward the portfolio if markets fall sharply. Why does the fund invest into your own actively managed strategies? Strategies are only chosen if they reflect the theme behind an investment idea, there is no obligation to invest in our own strategies. If an idea cannot be well reflected by one of these funds, the team has the ability to invest in other UCITS funds, derivatives or ETFs externally. Why does the fund currently only invest in your own strategies? The fund benefits from clean access to our actively managed strategies, i.e. the fund does not get charged the ongoing charge by the underlying strategies, and clients do not pay a double-layer of fees. In theory, the team is not limited to our strategies, however, the improved access to fund managers that this entails is clearly a great advantage when carrying out due diligence and for continued monitoring of performance and the underlying portfolios. Furthermore, our fund managers ensure that the team structures each investment idea in the correct way based on the underlying exposures of the active strategies that they may select. What percentage of the fund is invested in your own strategies? How is the remainder being invested? The team s investment in strategies is generally expected to represent approximately 60-70% of the overall fund s physical investment (i.e % of the fund s NAV). The remainder is allocated to cash, near cash, money market instruments and any other eligible instruments to cover the fund s exposure to derivatives, which are used to obtain both long and short exposure to several markets / investment ideas. How much is being charged internally for the management of the other strategies? Nothing is charged internally. In which strategies does the fund invest in? As at 30 June 2017, the fund is invested in the following strategies: Invesco Asian Equity Strategy IP Asian Equity Strategy IP Investment Grade Strategies IP Global Equity Strategy Invesco Pan European Structured Equity Strategy Invesco Pan European Equity Strategy IP Income Strategy IP UK Growth Strategy IP Global Equity Income Strategy IP Global Opportunities Strategy Invesco US High Yield Strategy Invesco Global Targeted Returns fund Frequently asked questions, August

2 How are the strategies in which the fund invests in selected? Investments in strategies are only made where they are required to express an investment idea. Should the Multi Asset team have an investment idea that is linked to equities or bonds, for example, the team may be able to identify one of our equity or bond strategies that can express the investment idea in a suitable manner. Should this not be possible, the team can seek exposure through UCITS funds and other instruments, such as ETFs and derivatives. The Multi Asset team scores all strategies considered for inclusion in the portfolio based on the following characteristics: AUM Liquidity Performance versus peers Performance versus benchmark External ratings This process results in an average score calculated for each strategy. The Multi Asset team will then review relevant documents (e.g. factsheets) and conduct interviews with the fund managers, prior to investing in a strategy. Why does the fund currently invest in your own strategies rather than ETFs? The team aims to capture the diversified alpha and the performance advantage gained by the active fund managers operating within our framework. Derivative Investments Which derivatives are being employed in the fund? Financial derivative instruments are used in pursuit of achieving the fund s investment objective or for the purpose of efficient portfolio management, and include, but are not limited to, the following: Currency forwards Currency options Futures Options (including exchange-traded and OTC) Swaptions Variance swaps Volatility swaps Interest rate swaps Credit default swaps Are derivatives all exchange traded or are OTC derivatives also employed? Both exchange-traded and Over-the-Counter (OTC) derivatives are employed within the fund. Employing derivatives goes together with taking counterparty risk how is this being minimized? Counterparty risk is managed by: Having processes for the selection and approval of counterparties and brokers Having procedures for approving deposit-takers and OTC derivative counterparties Setting and monitoring compliance with appropriate counterparty risk limits The quality of OTC counterparties is measured on a monthly basis. We will seek to ensure that exposures to counterparties with a credit rating of below A or with an internal rating of On watch is highlighted and removed. In addition, appropriate collateral management also serves to limit counterparty risk. How fast can the collateral of the derivatives be accessed in case of a default of counterparty? The timing of the return of collateral will be in accordance with industry norms for the type of derivative traded. The timing can also vary according to the collateral structure used and the type of default. With derivatives, automatic selling mechanisms can kick in when the market does not move in the expected direction. What is the team doing to mitigate this risk? The fund managers do two things to mitigate against these risks. Firstly they invest in very liquid derivative instruments to ensure some degree of underlying liquidity in the fund. Secondly the team spends a lot of time running stress tests and scenario analysis on the portfolio to help mitigate against this risk in periods of market stress. Risk Management What is the maximum aggregated (for all investment ideas) independent risk of the fund? The maximum aggregated (for all investment ideas) independent risk of the fund is set at 133% of the volatility of global equities as defined by the MSCI World index. What is the maximum marginal risk (accounting for the diversification benefits of the ideas) of the fund? The maximum marginal risk is half of that of global equities as defined by the MSCI World index. How does the fund manager calculate the marginal risk at any particular time? The Multi Asset team uses APT, an independent, third-party risk system provided by SunGard. The system evaluates each idea s diversification benefits and risk dynamics, including its standalone risk characteristics, marginal risk, as well as correlation with the overall portfolio on a 180-week look back basis. What is the VaR of the fund? The 99% 1-month VaR as at 31 July2017 was 2.37%. How would the fund typically behave when correlations increase between asset classes (e.g. like in May/June 2013) An important aspect of running a truly diversified portfolio is not reacting in times of market turbulence but pre-empting what turbulent market conditions could mean for our portfolio. The team Invesco Global Targeted Returns fund Frequently asked questions, August

3 spends a lot of time scenario and stress testing the portfolio to ensure, as best they can, that the fund can cope with a rise in volatility. Investors often approach diversification from an asset class perspective. We have moved away from classifying the world in asset classes and simply look for good investment ideas. By doing this, we believe that we can still achieve positive returns if, for example, the correlation between equities and bonds remains positive for an extended period of time. During these periods, we can seek diversification elsewhere; we aren't hostage to those asset class correlation dynamics. Marginal risk is significantly impacted by the diversification benefit inherent in the fund. How do you manage to ensure the diversification benefit is fairly constant and keep marginal risk at a constantly low level? To ensure diversification of risk, we have limits as to how much risk one asset type or investment idea contributes to the fund. No one asset type or investment idea is allowed to contribute more than 50% and 25% respectively to total fund risk. Is there an additional risk management/risk monitoring function outside of fund management? Yes. Invesco employs a multi-faceted approach to oversight and risk management that is deeply embedded in its culture, organisational governance and business structure. In the first instance, each investment team has embedded risk controls within its investment management discipline, including review and oversight processes tailored to its philosophy and objectives. The investment teams processes are bolstered and overseen by multidimensional independent controls. These controls include: The 70 person strong Global Performance Measurement and Risk (GPMR) team, an independent group responsible for analysing performance and activities, as well as position and risk, in the context of investment process and philosophy, market environment and client expectations. The Independent Risk Function (IRF), an independent assurance function for Invesco UK Limited. The IRF s aim is to support and facilitate Directors, senior management and the business in assessing, managing, monitoring and reporting all of Invesco s risks. The CIO challenge process, which is implemented via challenge meetings that are attended by the Chief Investment Officer (CIO), the Head of Investment Oversight and the fund manager. Invesco s senior management oversight. How is unintentional fx exposure being dealt with, i.e. are non-currency related ideas hedged into the base currency (euro)? Yes. Non-currency related ideas are hedged into the base currency. Against which historical market events is the fund stress tested? The following historical scenarios are used for historical stress testing performed by the IRF: From 9/11 Terrorist attack in the USA 10/09/ /09/2001 Sub-prime crisis 20/07/ /08/2007 Early 2008 credit crisis 02/01/ /03/2008 Economy slowdown impacts Asian markets To 08/05/ /10/2008 Lehman Brothers default period 08/09/ /09/2008 Black October /09/ /10/2008 Equity markets crisis 09/02/ /03/2009 Asian market rebound 13/03/ /06/2009 Sovereign debt crisis 16/04/ /05/2010 Japanese earthquake 09/03/ /03/2011 European sovereign debt crisis 01/07/ /10/2011 Source: Invesco. As at 31 July What are the hypothetical stress scenarios? The hypothetical scenarios below are used for scenario testing by the Multi Asset team, and are updated every six months: Scenario Cash is King Labour market fights back Abegeddon Sun Always Shines China Bust Euro Crisis Characteristics S&P %, US 10yr Treasuries +300bp US 5yr Treasuries +200bp, S&P 500 experiences no growth Nikkei -40%, US dollar/japanese yen exchange rate +100% Australian dollar +10%, long-dated Australian bonds +150bps Chinese equity volatility to 50, HSCEI index underperforms S&P 500 by 20%, Brazilian real -20% Italian 10-year government bonds +600bp, Eurostoxx Banks index 1-year implied volatility +30v, EUR -15% Will the fund borrow cash, i.e. is the fund leveraged? There is no explicit borrowing in the fund. However, the fund is leveraged through the use of derivatives, where the fund enters into transactions without investing cash in an amount equal to the full economic exposure of the instruments or transactions. Liquidity How fast can the portfolio be liquidated/neutralised in extreme events? Portfolio liquidity is monitored by Invesco Global Performance Measurement and Risk (GPMR) who use the RC Banken System. The output of which as at 31 July 2017 is below. To estimate time to liquidate, a bid-ask spread and tradable volume is estimated for each security type, Invesco Global Targeted Returns fund Frequently asked questions, August

4 from a variety of internal and external sources in both normal and fire sale market conditions. At the current fund size (and even at a reasonable multiple of the current size) there are no positions which could not be liquidated in one day within usual spreads. In highly stressed markets, spreads would of course rise but in all but the most extreme scenarios we believe we should not face difficulties trading any of our positions. Source: Invesco as at 31 July The timetable depicts an estimate of the amount of the Invesco Global Targeted Returns Fund which could be liquidated over a given timescale with no market impact. This is a conservative estimate based on reported trades which may underestimate the ability to liquidate large positions. For illustrative purposes only. Normal conditions figures are calculated using the average of the last three month s volume and spread figures. Fire sale (stressed) conditions can be defined as extremely adverse conditions in terms of market liquidity. It is calculated using the tail of the volume and bid-ask spread distributions. How is liquidity being managed, i.e. which criteria do respective cash vehicles have to fulfill (e.g. AAA etc)? Cash management has been outsourced to the Invesco Global Liquidity team who aim to achieve: Preservation of capital 1 Credit risk is mitigated by investing in high quality and well diversified short-term debt instruments supported by an independent credit approval and monitoring process. Market risk is mitigated by limiting the weighted average maturity of the cash portfolio to a maximum of 60 days. Liquidity risk is mitigated by maintaining a minimum of 30% of AUM in securities maturing within 1 week. Liquidity The Invesco Global Liquidity team continuously assesses the impact of economic and market events on liquidity. There are no restrictions on frequency of dealing, size of transaction or on retained balances. Yield Cash portfolios are priced competitively, allowing for more selective portfolio construction while seeking to deliver competitive yield. The yield of the cash portfolio is comparable to the overnight interbank market rate. Daily yield is calculated with income accrued each day. 1 The preservation of principal is not guaranteed. How and how quickly are new inflows being invested in the fund? (e.g. a global equity fund could buy a future on the MSCI World to deal with large inflows in the short term) Trading on the fund is regular, and the fund will never hold more than 10% of its NAV in unencumbered cash. Move to Invesco Perpetual What was the reason for the team to join Invesco Perpetual? The four initial members of the team (David Millar, Dave Jubb, Richard Batty and Gwilym Satchell) were all excited by the challenge of focusing their extensive experience and proven capability on building a market-leading multi asset offering at Invesco Perpetual, including the opportunity to dedicate themselves to the new Invesco Perpetual Global Targeted Returns Strategy. Their fundamental, long-term, conviction-based style of investing is entirely consistent with that of the Henley investment centre and they are now working closely within that team, sharing in the rich seam of investment ideas and embracing their alphagenerating capabilities. It was essential to them that they joined an organisation with the underpinning strength of a truly global investment management firm. The team now has access to the intellectual capability and investment expertise of all Invesco investment teams worldwide and is embedded in a global infrastructure which already successfully supports other award-winning complementary risk-based multi asset offerings in various of the group s investment centres (including key global support systems / teams such as Distribution, Dealing, Compliance and Risk and global 3rd party relationships). Buy/sell discipline What is the process for a new investment idea to be validated? Once an idea starts to take form, the team puts it through a four-stage research process, which is known as TEAM. What is the Theme underpinning why the team believes the idea will deliver positive returns over the next two to three years? What are the Economic drivers for the idea is the idea driven by economic growth differentials across countries, or perhaps different policy approaches by central banks? The A in TEAM stands for Analytics, which refers to the valuation metrics employed by the team to see if there is a valuation opportunity in particular markets. And the M in TEAM stands for Managers, which reflects the continual interaction that the team has with colleagues around the firm. If there is an equity idea, the team will discuss it with equity colleagues, while a bond idea will trigger a conversation with the Fixed Interest investment team. So, for every idea, the team will know the views of its colleagues. Invesco Global Targeted Returns fund Frequently asked questions, August

5 Once this research process has been completed for an investment idea, the team decides whether to approve the idea for the fund. Once approved, the idea goes onto a menu of ideas, which can be considered for inclusion in the portfolio. At this point, the fund management process begins, as the team considers how the ideas interact with each other. In particular, the team focuses on the riskreturn profile of each idea and how to combine the ideas into a single managed portfolio to achieve the fund s return and volatility targets over time. Secondly, each idea is assessed against the team s central economic outlook, but the team also tests how the portfolio and each idea would behave under various different economic scenarios. What if a scenario persisted where equities and bonds were positively correlated for an extended period of time, but both going down? It is important to understand these risks for the portfolio. At this stage of the process, the team assesses the best way to structure each idea and which instrument is the best representation of the initial investment idea. The liquidity for each idea is also scrutinised very closely to ensure the fund only has exposure to very liquid markets. The final stage of the process is the implementation of the investment ideas. The team benefits from the depth of knowledge and experience of Invesco s Global Alternatives and FX trading desk. The Multi Asset team has a dedicated dealer in Henley-on- Thames who has a direct input into the ideageneration process and provides the link to financial markets through the dealing desk s market knowledge and exposure. What is the process for an implemented investment idea to be dismissed? Is there a specific sell discipline? All investment ideas are reviewed on at least a quarterly basis. This continual review and renewal of commitment challenges and then evidences the investment team s continued confidence in each idea. Should the investment idea no longer meet the team s expectations in terms or return or risk, the investment idea will exit the portfolio. The fund works because of the combination of ideas therefore the fund managers will not automatically take an idea out of the fund as they may be left with an unbalanced portfolio. Is stop-loss being applied for investment ideas? Yes. The investment team documents the two to three year expected return for each investment idea. In general, the team sizes each idea to contribute between 25 and 50 basis points to the fund s total return, albeit this is not guaranteed. Is there a return target per investment idea or, in other words, do you expect to have returns distributed evenly across all ideas (diversification of returns)? Yes. The investment team documents the 2-3 year expected return for each investment idea. In general, the team sizes each idea to contribute between 25 and 50 basis points to the fund s total annualised return. Would you rather buy calls or sell puts when you have a directional view or vice versa? The team will take this on a case-by-case basis and always look for the most efficient and effective way of implementing ideas. The implementation of an idea may change over time as the cost of certain options or derivatives changes. For example the team currently sell puts as long equity in the US, this means the fund earns an income which in the team s view is more attractive than being long equities outright. Are there any limitations as to what ideas/investment themes are being employed, e.g. SRI, agriculture, weapons, etc.? No. The fund has an unconstrained research agenda. Can the fund enter a short position on one or more asset classes? Is there a limit for short positions? Yes. There is no limit for short positions. Can you think of market environments in which you would find it difficult to identify investment ideas? With an unconstrained research agenda, the team is able to explore many asset types and geographies for investment ideas. The fund management team has over 70 years investment experience. In addition, the team has access internally to some of the brightest minds in the business and externally has regular contact with numerous research providers. No drought of ideas is expected but of course the nature of the ideas will change depending upon the economic and market backdrop. Are investment ideas generated internally or externally? Are there sources the investment team can draw upon within Invesco? All investment ideas are generated internally by the Multi Asset team, but as previously mentioned, the team can enhance its research by making use of the firm s extensive infrastructure. Invesco Ltd. s Chief Economist (John Greenwood) provides the Multi Asset team with economic updates, while meetings involving Invesco Perpetual s CIO (Nick Mustoe) as well as representatives of our other investment teams facilitate the sharing of investment views and themes within the firm globally. External research calls are conducted on a weekly basis with a number of providers, with the aim of filtering research available from investment banks and other external strategists. Are there capacity constraints, if yes at what level and for which reasons? Invesco Perpetual does not set explicit capacity targets on its funds. There is no limit currently set for the Strategy, though this is an area which is consistently monitored. At present, the investment team believes there is sufficient capacity to grow the fund substantially. Capacity will be reviewed when the fund management team feels that assets under management have increased to a level that inhibits its ability to successfully execute the fund s Invesco Global Targeted Returns fund Frequently asked questions, August

6 investment strategy. The pro-active management of capacity across the life of the fund is key for Invesco Perpetual to preserve the interests of existing clients. Liquidity is a central consideration for this product. The team adopts a forward looking view of liquidity on the basis of the fund s AUM. The fund managers therefore manage the portfolio with a view of where they believe its level of assets will be in the future, as well as where they are currently. When an idea is added to the portfolio, it is intended to be on a two- to three-year view, so liquidity has to be available at the end of this time horizon, when the fund managers may want to close the position. How will the fund behave in up, down and flat equity markets? The fund targets a gross return of 5% p.a. above 3 month EURIBOR (or an equivalent reference rate) over a rolling, three-year period, and aims to achieve this in most market conditions. There is no guarantee that these targets will be achieved. Invesco Global Targeted Returns fund Frequently asked questions, August

7 Important information This marketing document is exclusively for use by Professional Clients and Financial Advisers in Continental Europe (as defined below) and Ireland, Qualified Investors in Switzerland and Professional Clients in Dubai, Jersey, Isle of Man, Malta, Cyprus and the UK. This document may also be used by financial intermediaries in the United States as defined below. This document is not for consumer use, please do not redistribute. Data as at , unless otherwise stated. This document is not subject to regulatory requirements that ensure impartiality of investment recommendations and investment strategy recommendations. Therefore, the prohibition of trading before the release of investment recommendations and investment strategy recommendations does not apply. Past performance is not a guide to future returns. Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals, they are subject to change without notice and are not to be construed as investment advice. The value of investments and any income will fluctuate (this may partly be the result of exchange-rate fluctuations) and investors may not get back the full amount invested. Debt instruments are exposed to credit risk which is the ability of the borrower to repay the interest and capital on the redemption date. The fund will invest in derivatives (complex instruments) which will be significantly leveraged resulting in large fluctuations in the value of the fund. The fund may hold debt instruments which are of lower credit quality and may result in large fluctuations of the value of the fund. The fund may invest in distressed securities which carry a significant risk of capital loss. This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities. For more information on our funds, please refer to the most up to date relevant fund and share class-specific Key Investor Information Documents, the latest Annual or Interim Reports and the latest Prospectus, and constituent documents. This information is available using the contact details of the issuer and is without charge. Further information on our products is available in English using the contact details shown. Whilst great care has been taken to ensure that the information contained herein is accurate, no responsibility can be accepted for any errors, mistakes or omissions or for any action taken in reliance thereon. The distribution and the offering of the fund or its share classes in certain jurisdictions may be restricted by law. Persons into whose possession this document may come are required to inform themselves about and to comply with any relevant restrictions. This does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. Persons interested in acquiring the fund should inform themselves as to (i) the legal requirements in the countries of their nationality, residence, ordinary residence or domicile; (ii) any foreign exchange controls and (iii) any relevant tax consequences. As with all investments, there are associated risks. This document is by way of information only. Asset management services are provided by Invesco in accordance with appropriate local legislation and regulations where applicable. The fund is available only in jurisdictions where its promotion and sale is permitted. Not all share classes of this fund may be available for public sale in all jurisdictions and not all share classes are the same nor do they necessarily suit every investor. Fee structure and minimum investment levels may vary dependent on share class chosen. Please be advised that the information provided in this document is referring to Class A (accumulation- EUR) exclusively. This fund is domiciled in Luxembourg. For the distribution of this document, Continental Europe is defined as Austria, Belgium, Finland, France, Germany, Greece, Italy, Liechtenstein, Luxembourg, Netherlands, Norway, Spain, Sweden and Switzerland. Germany, Austria, Switzerland and Liechtenstein: This document is issued in Germany by Invesco Asset Management Deutschland GmbH. This document is issued in Austria by Invesco Asset Management Österreich Zweigniederlassung der Invesco Asset Management Deutschland GmbH, and in Switzerland as well as Liechtenstein by Invesco Asset Management (Schweiz) AG. Subscriptions of shares are only accepted on the basis of the most up to date legal offering documents. The legal offering documents (fund & share class specific Key Investor Information Document, prospectus, annual & semi-annual reports, articles and trustee deed) are available free of charge at our website and in hardcopy and local language from the issuers: Invesco Asset Management Deutschland GmbH, An der Welle 5, D Frankfurt am Main, Invesco Asset Management Österreich Zweigniederlassung der Invesco Asset Management Deutschland GmbH, Rotenturmstrasse 16-18, A-1010 Wien, and Invesco Asset Management (Schweiz) AG, Talacker 34, CH-8001 Zurich, who acts as a representative for the funds distributed in Switzerland. In Liechtenstein the KIID and Prospectus are available in German and English on respectively. Paying agent in Switzerland: BNP PARIBAS SECURITIES SERVICES, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002 Zürich. Paying agent in Liechtenstein: LGT Bank AG, Herrengasse 12, FL-9490 Vaduz. Ireland: Issued by Invesco Global Asset Management DAC, Central Quay, Riverside IV, Sir John Rogerson s Quay, Dublin 2, Ireland. Regulated in Ireland by the Central Bank of Ireland. Dubai: Issued by Invesco Asset Management Limited, Po Box , DIFC Precinct Building No 4, Level 3, Office 305, Dubai, United Arab Emirates. Regulated by the Dubai Financial Services Authority. Jersey: Issued by Invesco International Limited, 2nd Floor, Orviss House, 17a Queen Street, St Helier, Jersey, JE2 4WD. Regulated by the Jersey Financial Services Commission. Isle of Man and Malta: Issued by Invesco Global Asset Management DAC, Central Quay, Riverside IV, Sir John Rogerson s Quay, Dublin 2, Ireland. Regulated in Ireland by the Central Bank of Ireland. Investments should be based on the full details of the Prospectuses. The Prospectuses, the fund and share class-specific Key Investor Information Documents and further information are available from Invesco Global Asset Management DAC. UK: Issued by Invesco Global Investment Funds Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK. Authorised and regulated by the Financial Conduct Authority. For the purposes of UK law, the fund is a recognised scheme under section 264 of the Financial Services & Markets Act The protections provided by the UK regulatory system, for the protection of Retail Clients, do not apply to offshore investments. Cyprus: Issued in Cyprus by Invesco Global Asset Management DAC, Central Quay, Riverside IV, Sir John Rogerson s Quay, Dublin 2, Ireland, which is regulated in Ireland by the Central Bank of Ireland. Any scheme provided by the Cyprus regulatory system, for the protection of retail clients, does not apply to offshore investments. Compensation under any such scheme will not be available. The Invesco Global Targeted Returns Fund is subject to the provisions of the European Directive 2009/65/EC. Additional information for financial intermediaries in the United States: This document is intended for distribution to US financial intermediaries for informational purposes and in relation to their activities with offshore clients only. The Funds are not registered under any US securities law, and may not be offered or sold directly or indirectly in the US, its territories or possessions, nor to any US persons, citizens or residents. The Fund must not be marketed on US soil. This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions. Issued in the US by Invesco Distributors, Inc., 11 Greenway Plaza, Suite 1000, Houston, Texas 77046, USA. Invesco Distributors, Inc. is the appointed US sub-distributor of the Invesco Funds SICAV and Invesco Fund Series 1-6. All entities are indirect, wholly owned subsidiaries of Invesco Ltd. CEUK752/2017 Invesco Global Targeted Returns fund Frequently asked questions, July