Invesco Global Targeted Returns Fund

Transcription

1 Invesco Global Targeted Returns Fund December 2016 Multi Asset Team This marketing document is exclusively for use by Professional Clients and Financial Advisers in Continental Europe (as defined in the important information), and Qualified Investors in Switzerland and Professional Clients in the UK only and is not for consumer use. Please do not redistribute this document.

2 Investment proposition and philosophy

3 Invesco Global Targeted Returns Fund Business update Invesco Perpetual * Part of Invesco Ltd (AUM bn 1 ) Based in Henley-on-Thames Assets under management (AUM): 110.5bn (Including retail, offshore and institutional assets) Invesco Global Targeted Returns Fund Managed by the Invesco Perpetual Multi Asset team Launched on 18 December 2013 Assets under management: 17,524,960,435 across three domiciles; including 5,609,378,252 in the LUX-domiciled fund Performance: annualised from inception to 31 December 2016 Volatility: 3.90% annualised from inception to 31 December 2016 The data relates to a past period and past returns are not a guarantee of future returns. Source: Invesco as at 31 December *The fund featured in this document is managed by the firm s investment centre in Henley (UK), Invesco Perpetual. Invesco Perpetual is a business name of Invesco Asset Management Limited (IAML) and forms part of Invesco Limited. 1 As at 30 September Inception date 18 December Fund performance figures are shown in euro, inclusive of reinvested income and gross of the ongoing charges and portfolio transaction costs. The figures do not reflect the entry charge paid by individual investors. 3

4 Diversification benefit Invesco Global Targeted Returns Fund Investment proposition Investing in ideas Target return: 3-month EURIBOR plus 5% on a rolling, three-year annualised basis* Total independent risk Target volatility: Less than half global equity 1 volatility over a rolling, three-year period* Portfolio: Typically individual investment ideas across asset classes 2 with a time horizon of two to three years Portfolio risk Investment philosophy: Unconstrained research combined with a robust risk based fund management process For illustrative purposes only. *Gross of fees. There is no guarantee this performance target or volatility target will be achieved. 1 MSCI World ideas as at 31 December

5 Team and process

6 >8 years working together An experienced Multi Asset team Core investment team with broad multi discipline support A team of macro specialists solely focused on targeted return strategies Years of experience Invesco: broad multi discipline support David Millar, FIA: Head of Multi Asset 28 Dave Jubb, FIA: Fund Manager 34 Richard Batty, PhD: Fund Manager 22 Gwilym Satchell, PRM: Risk Manager 8 Sebastian Mackay: Fund Manager 16 Clive Emery: Product Director 19 Danielle Singer, CFA: Portfolio Director 15 Georgina Taylor: Research Director 16 Saul Shaul: Fund Analyst 10 Dilek Ulu, PhD: Fund Analyst* 3 Steven Hawes, CFA: Research Analyst 6 Mike Marshall, CFA: Risk Analyst 10 Investment expertise Invesco Ltd. s Chief Economist Monthly economic update 68 Henley-based investment professionals Monthly global equity meetings More than 650 Invesco investment professionals worldwide Global investor forum Invesco infrastructure Governance Dealing Operations Marketing support Source: Invesco as at 31 December Years of experience subject to rounding. Team composition is subject to change without notice. *Dilek Ulu joined the team in January

7 Investing in ideas A repeatable three-step process 1 Research Thematic T Economic E Approving ideas Analytic A Managers M 2 Fund management Risk Scenarios Structure Liquidity Combining ideas 3 Implementation Order Comply Execute Review Implementing ideas Review and Oversight For illustrative purposes only. 7

8 1. Research Approving ideas

9 Research note Inputs 1. Approving ideas A repeatable process The Multi Asset team Invesco Chief Economist Invesco Perpetual Investment Teams Invesco Investment Centres CIO Challenge Process External & Proprietary Research Monthly ideas TEAM meeting Monthly macro meeting Monthly macro update Regular Multi Asset team interaction Global equity meetings Global investment meeting 13 centres globally Global Investor Forum Quarterly oversight meeting with CIO office and investment team heads Weekly conference calls Asset class valuation models Idea generation Thematic T Economic E Analytic A Managers M 1 Research Must generate a positive return in our central economic thesis Initial sizing and implementation route Assigned a 1, 2 or 3 internal star rating* Approving ideas For illustrative purposes only. *Ratings are internal evaluations only. 9

10 1. Approving ideas Targeted ideas across asset classes 1 Research Idea 1: Diverging inflation US vs UK Inflation Products Idea 2: Global competitiveness Japanese Yen vs Korean Won Currencies Idea 3: Idea 4: Central bank policy Government Bonds The strength of the corporate sector Alpha Strategies European Curve Steepener European Divergence Currencies Corporate Bonds Alpha Strategies Volatility Instruments Inflation Products Equities Commodities Real Estate Government Bonds Source: Invesco as at 31 December Where securities are mentioned in this document they do not necessarily represent a specific portfolio holding and do not constitute a recommendation to purchase, hold or sell. For illustrative purposes only. 10

11 1. Approving ideas Idea 1: Diverging inflation Inflation US vs UK 1 Research Inflation expectations have moved significantly in the UK in response to the fall in sterling post the EU referendum. We think the level of inflation expectations have moved too far and are too high relative to the likely outcome for UK inflation going forward. In the US inflation expectations look too low for the likely continued pick-up in wages therefore we are long US inflation relative to UK inflation. Difference between UK and US 10-year inflation swaps 2,0 Inflation swap relative to underlying inflation 2,5 1,5 2,0 1,0 1,5 0,5 1,0 0,0 0,5-0,5 jan 12 jan 13 jan 14 jan 15 jan 16 UK 10-year inflation swap - US 10-year inflation swap 0,0 jan 16 mrt 16 mei 16 jul 16 sep 16 nov 16 US 10-year inflation swap - US inflation UK 10-year inflation swap - UK inflation Source: Bloomberg as at 31 December For illustrative purposes only. 11

12 KRW billions Year on year growth % 1. Approving ideas Idea 2: Global competitiveness Currency Japanese Yen vs Korean Won 1 Research We favour the Japanese yen, a measurably cheap defensive currency relative to the Korean won which is yet to devalue and is expensive versus its trading partners. Policy in Japan appears to be edging away from outright currency devaluation and given high debt levels in South Korea there is pressure on policy makers to potentially ease policy further. The Japanese yen has started to appreciate versus the Korean won Debt levels have continued to rise in Korea, despite income growth rates declining Added to the fund 80 feb 14 feb 15 feb 16 Japanese yen vs US dollar Korean won vs US dollar Total household debt, lhs Household income, YoY Household loans, YoY Source: Bloomberg as at 31 December For illustrative purposes only. LHC: February 2014 =

13 1. Approving ideas Idea 3: Central bank policy Interest Rates European Curve Steepener 1 Research ECB policy is likely to stay anchored against a backdrop of subdued economic growth, therefore interest rates will stay low and QE is likely to continue. Against this policy backdrop the yield curve is likely to steepen as investors start to price reflation and a higher term premium. The spot curve has already steepened and we expect the forward curve to move in the same direction. The spot curve has already steepened relative to the forward curve 1,4 1,2 Inflation expectations have recently surprised on the upside ,0 20 0,8 0 0,6-20 0,4-40 0,2-60 0,0 jan 15 jul 15 jan 16 jul 16 jan 17 Eurozone: 30-year - 5-year swap rates, 4-year forward Eurozone: 30-year - 5-year swap rates, spot -80 jan 10 jan 12 jan 14 jan 16 Citi Eurozone inflation surprise index Source: Bloomberg as at 31 December For illustrative purposes only. 13

14 1. Approving ideas Idea 4: Strength of the corporate sector Equity European Divergence 1 Research There are signs of some economic recovery in Europe. Earnings are forecast to grow 6% and combined with a 4% yield suggest reasonable returns in European equities. We mirror the stock selection of two of our colleagues European equity strategies in segregated sleeves to add alpha to the beta of the idea. We also cushion the idea using volatility of Banks and the Swiss Market index. Invesco European strategies vs Eurostoxx 600 The Swiss Market index may be vulnerable 240 given its concentration in defensive stocks Financials Oil & Gas Basic Materials Industrials 160 Telecom Equally weighted basket of two Invesco european strategies* Eurostoxx 600 Index Healthcare Consumer Goods Source: Datastream and Bloomberg as at 31 December January 2010 = 100. *This return represents the return of two Invesco European equity funds, whose strategies are represented in the Invesco Global Targeted Returns Fund. Performance figures are shown in euro, inclusive of reinvested income and net of the Ongoing Charge and portfolio transaction costs. The figures do not reflect the entry charge paid by individual investors. Eurostoxx Index returns are shown in euros, total return. An investment cannot be made directly into an index. Past performance is not a guide to future returns. 14

15 Approving ideas Our central economic thesis 1 Research Challenging global growth may fragment Longer-term structural growth rates will remain subdued Possible fiscal boost to US economic growth while other headwinds remain Future growth momentum in Europe not helped by political uncertainty Policy effectiveness impacted by financial linkages, e.g. US dollar Official monetary and/or fiscal policy choices becoming more difficult Strains in funding markets already imply monetary tightening (e.g. EM) Lower trend growth and policy rates likely to cap the upside for bond yields Low inflation view being challenged Risk that wage, commodity and/or protectionism inflationary pressures persist Chinese liquidity measures a new source of upward pressure on inflation But disinflationary forces still in place e.g. debt overhang and Asian devaluation Select opportunities in risk assets Further equity and credit market returns dominated by income Seeking alternative return sources to reduce reliance on broad markets Diversified alpha as an additional source of value Uncertain macro environment to be reflected in higher volatility Conflict between cyclical and structural drivers will cause increased volatility Volatility likely from non-market forces (e.g. political uncertainty) Long-term impacts from the misallocation of capital (e.g. through leverage) Source: Invesco Perpetual as at 31 December For illustrative purposes only. 15

16 2. Fund management Combining ideas

17 Robust risk management Inputs 2. Combining ideas Our fund management process Approved ideas Daily risk monitoring on desk and by independent risk function Weekly fund overview meeting Fund manager and risk manager decision meetings Independent risk function monthly meeting on stress tests Scenarios reviewed at least every 6 months Risk Scenarios Structure Liquidity 2 Fund management Combining ideas to achieve genuine diversification Scenario and stress testing to create a robust portfolio Combination of strategies and derivatives to take targeted exposure Combining ideas For illustrative purposes only. 17

18 2. Combining ideas Achieving diversification 2 Fund management Expected diversification from combining investment ideas Total independent risk 13.75% 2 Volatility - Asian Equities vs US Equities Interest Rates - Yield Compression Interest Rates - Sweden Interest Rates - Swap Spreads Interest Rates - Selective EM Debt Interest Rates - Japanese Curve Steepener Interest Rates - European Curve Steepener Diversification benefit 50% of global equity risk 3 Total portfolio risk 4.63% 1 Interest Rates - Australia vs US Inflation - US vs UK Equity - US Large Cap vs Small Cap Equity - Japan Currency - US Dollar vs Euro Currency - US Dollar vs Canadian Dollar Currency - Russian Ruble vs Canadian Dollar Currency - Japanese Yen vs Korean Won Currency - Indian Rupee vs Chinese Renminbi Currency - Chilean Peso vs Aus and NZ Dollars Credit - European Curve Flattener Commodity - Commodity Carry Credit - US High Yield Credit - Selective Credit Equity - UK Equity - Selective Asia Exposure 18 0 Independent risk Portfolio risk Equity - Global Equity - European Divergence Source: Invesco as at 30 December For illustrative purposes only. 1 Portfolio risk the expected volatility of the fund as measured by the standard deviation of the current portfolio of ideas over the last three and a half years. 2 Independent risk the expected volatility of an individual idea as measured by its standard deviation over the last three and a half years. 3 Global equity risk is the expected volatility of the MSCI World index as measured by its standard deviation over the last three and a half years, 12.57% as at 30 December 2016.

19 Simulation count 2. Combining ideas Stress testing and economic scenario analysis 2 Fund management Scenario Cash is King Labour market fights back Characteristics S&P %, US 10yr Treasuries +300bp US 5yr Treasuries + 200bp, S&P 500 experiences no growth Abegeddon Nikkei -40%, US dollar/japanese yen exchange rate +100% Sun Always Shines China Bust Recession 2017 Australian dollar +10%, long-dated Australian bonds +150bps Chinese equity volatility to 50, HSCEI index underperforms S&P 500 by 20%, Brazilian real -20% S&P %, US 10yr Treasuries -100bp Distribution of potential fund returns for a given scenario ,00% -4,00% -3,00% -2,00% -1,00% 0,00% 1,00% 2,00% 3,00% 4,00% 5,00% Fund returns 1 Green line indicates probability-weighted best estimate, red line indicates worst case using lower quartile outcomes. For illustrative purposes only. Source: Invesco Perpetual as of 31 December $ = US. 19

20 2. Combining ideas Structuring and risk managing individual ideas 2 Fund management Structuring an idea: This step takes account of the asset type, tenor, and market risk discussion from the research note Output from the risk and scenario analysis is used to improve the structure of the idea for the portfolio The fund management team considers potential offsets across the portfolio, e.g. commodity exposure of both the US dollar vs Canadian dollar and Norwegian krone vs Sterling ideas A variety of instruments could be used to: reduce risk create an asymmetric payoff structure improve scenario output Idea Review Process: Daily Price movements Weekly Performance, price relative to targets, triggers Quarterly Deep dive review of targets and implementation For illustrative purposes only. The dark blue line shows a payoff structure that has cushioned downside risk versus the light blue line For illustrative purposes only. 20

21 Blending ideas into a well balanced portfolio Contribution by idea examples 18 Sep Oct Jun Sep Dec Feb Jun Jun 2016 Portfolio returns (gross) -0.59% 0.12% -0.64% -2.35% MSCI World index (EUR-hedged) -8.12% % % -6.60% Equity - Sell Puts as Long US Equity Equity - Global Equity - Germany Volatility - UK Equity v Rates Equity - European Divergence Equity - Japan Equity - Sell Puts as Japanese Equity Credit - US High Yield Interest Rates - Selective EM Debt Equity - Selective Asia Exposure Equity - UK Volatility - Interest Rates Credit - European Curve Flattener Currency - Indian Rupee vs Chinese Renminbi Interest Rates - European Curve Steepener Currency - Russian Ruble vs Canadian Dollar Credit - Selective Credit Equity - EM vs US Interest Rates - Swap Spreads Interest Rates - Sweden Interest Rates - Japanese Curve Steepener Currency - Norwegian Krone vs UK Pound Equity - UK vs Switzerland Interest Rates - Australia vs US Interest Rates - Yield Compression Volatility - Selective FX Currency - Chilean Peso vs Aus and NZ Dollars Interest Rates - UK Currency - US Dollar vs Euro Interest Rates - US vs Europe Interest Rates - Australian Short Rates Volatility - Asian Equities vs US Equities Interest Rates - Japanese Curve Flattener Equity - US Large Cap vs Small Cap Interest Rates - US Duration Volatility - Australian Dollar vs US Dollar Commodity - Commodity Carry Interest Rates - UK vs France Equity - US Staples vs Discretionary Currency - US Dollar vs Canadian Dollar Currency - Japanese Yen vs Korean Won Past performance is not a guide to future returns. Source: Barclays Point. Contribution figures are estimates and should be used for indicative purposes only. Data cleansing and retrospective information availability may cause changes. Key: Shaded areas represent a sliding scale, whereby red corresponds to the negative performing ideas during the period and blue to the positive performing ideas during the period. Portfolio characteristics are subject to change without notice. MSCI World 100% euro hedged index, total return. Fund performance figures are shown in euro, inclusive of reinvested income and gross of ongoing charges and portfolio transaction costs. The figures do not reflect the entry charge paid by individual investors. Please see Net Performance slide for the impact of all fund charges, including the ongoing charges. Risk on Risk off 21

22 3. Implementation Implementing ideas

23 3. Implementing ideas Invesco global operational and trading platform Implementation through dealing desk Inputs Combined ideas Order Comply Execute Review 3 Implementation A global fund manager with global derivatives dealing capability. US$1.1 trillion traded by the Alternatives and FX dealing desk Global functional teams for performance measurement, risk and compliance Integrated global operating platform. Implementing ideas Source: Invesco, data as at 31 December For illustrative purposes only. Numbers are subject to rounding. 23

24 3. Implementing ideas A structured review process Daily: Independent risk function Report daily risk numbers, run Risk Profile Limit System. Weekly : Multi Asset team Review the fund including risk positions, implementation of ideas and fund performance. Monthly : Independent risk function/multi Asset team Discuss stress tests, compare risk models, risk and compliance review. Risk 3 manager Implementation Invesco Multi Asset Fund managers Quarterly: CIO Oversight Challenge CIO, Head of Investment Oversight and heads of investment desks challenge the Multi Asset team on ideas, strategy and implementation of the Global Targeted Returns strategy. For illustrative purposes only. GPMR = Global Performance Measurement and Risk. 24

25 4. Portfolio overview

26 APT output Assessing each individual trade and its contribution to portfolio risk % of global equity 1 Fund volatility % Fund Value 2 5,622,670, Sum of Independent Risk % 99% 1 month VaR 2.99% Equity beta 0.21 Cash cover req % Portfolio duration (years) 1.07 Idea Independent Risk Marginal Equity risk impact risk correlation Long Short Commodity - Commodity Carry % 2.2% Credit - European Curve Flattener % 19.9% Credit - Selective Credit % 1.1% Credit - US High Yield % 0.0% Currency - Chilean Peso vs Aus and NZ Dollars % 15.5% Currency - Indian Rupee vs Chinese Renminbi % 15.8% Currency - Japanese Yen vs Korean Won % 1.9% Currency - Russian Ruble vs Canadian Dollar % 4.9% Currency - US Dollar vs Canadian Dollar % 9.9% Currency - US Dollar vs Euro % 0.2% Equity - European Divergence % 12.1% Equity - Global % 14.4% Equity - Japan % 0.0% Equity - Selective Asia Exposure % 0.1% Equity - UK % 8.9% Equity - US Large Cap vs Small Cap % 2.9% Inflation - US vs UK % 11.6% Interest Rates - Australia vs US % 6.7% Interest Rates - European Curve Steepener % 7.9% Interest Rates - Japanese Curve Steepener % 6.5% Interest Rates - Selective EM Debt % 0.0% Interest Rates - Swap Spreads % 13.5% Interest Rates - Sweden % 18.1% Interest Rates - Yield Compression % 8.2% Volatility - Asian Equities vs US Equities % 10.3% Cash & Residual FX* % 13.4% Source: Invesco as at 31 December Sum of representative idea sizes: 289.5%. Definitions: Independent risk: The risk of the idea in isolation. Risk impact: The change in the portfolio s risk as a result of adding the idea to the portfolio. Marginal risk: The attribution of the overall portfolio volatility to each idea. For illustrative purposes only. This information relates to the portfolio based on market conditions as at 31 December 2016, subject to change. *Residual FX refers to the risk arising from unhedged currency exposure rather than an individual investment idea. 1 Global equity represented by the MSCI World index. Portfolio characteristics are subject to change without notice. 2 This fund value does not reflect the official valuation point. 26

27 APT output Risk contribution Commodity - Commodity Carry Credit - Selective Credit Currency - Chilean Peso vs Aus and NZ Dollars Currency - Japanese Yen vs Korean Won Currency - US Dollar vs Canadian Dollar Equity - European Divergence Equity - Japan Equity - UK Inflation - US vs UK Interest Rates - European Curve Steepener Interest Rates - Selective EM Debt Interest Rates - Sweden Volatility - Asian Equities vs US Equities Credit - European Curve Flattener Credit - US High Yield Currency - Indian Rupee vs Chinese Renminbi Currency - Russian Ruble vs Canadian Dollar Currency - US Dollar vs Euro Equity - Global Equity - Selective Asia Exposure Equity - US Large Cap vs Small Cap Interest Rates - Australia vs US Interest Rates - Japanese Curve Steepener Interest Rates - Swap Spreads Interest Rates - Yield Compression Risk off Partial Risk off Neutral Partial Risk on Risk on Commodity Credit Currency Equity Inflation Interest Rates Volatility Europe United Kingdom United States Germany India Chile Canada Hong Kong China Australia Russia Sweden France Switzerland New Zealand Japan Other Source: Invesco as at 31 December For illustrative purposes only. This information relates to the portfolio based on market conditions as at 31 December 2016, subject to change. Portfolio characteristics are subject to change without notice. 27

28 Creating a more robust portfolio Correlation analysis Asset class Correlation with Invesco Global Targeted Returns Fund Global stocks 0.32 US stocks 0.27 European stocks 0.42 Equities The fund provided good diversification with both global and US equities Emerging markets stocks 0.39 Global government bonds Bonds Fund performance was largely unrelated Global bonds to fixed income Commodities 0.07 Alternatives The fund provided good diversification Currency (USD) 0.30 with commodities and currency The Invesco Global Targeted Returns Fund typically has between independent investment ideas which seek to deliver truly diversified returns. This approach means the strategy could complement more traditional asset allocation approaches. Source: Bloomberg. Past performance is not a guide to future returns. Period covered: inception (18 December 2013) of the Invesco Global Targeted Returns Fund through 31 December Based on weekly returns. Global stocks are represented by the MSCI World Index. US stocks are represented by the S&P 500 index. European stocks are represented by the Eurostoxx 50 index. Emerging Market stocks are represented by the MSCI Emerging Market index. Global government bonds are represented by the Bloomberg Global Developed Sovereign Bond index. Global bonds are represented by the Barclays Global Aggregate index. Commodities are represented by the Bloomberg Commodity index. Currency is represented by the US Dollar index. An investment cannot be made directly into an index. 28

29 Invesco Global Targeted Returns Fund Contribution by investment idea Contribution (bp, gross) Investment ideas Q Q Q Q Commodity - Commodity Carry Credit - European Curve Flattener Credit - Selective Credit Credit - US High Yield MA Currency - Chilean Peso vs Australian and NZ Dollars Currency - Indian Rupee vs Chinese Renminbi Currency - Japanese Yen vs Korean Won Currency - Norwegian Krone vs UK Pound Currency - US Dollar vs Canadian Dollar Currency - US Dollar vs Euro Currency - Russian Ruble vs Canadian Dollar Equity - European Divergence Equity - Germany NA NA Equity - Global Equity - Japan Equity - Selective Asia Exposure Equity - UK Equity - US Large Cap vs Small Cap Equity - US Staples vs Discretionary Inflation - US vs UK NA NA NA 24 Interest Rates - Australia vs US Interest Rates - European Curve Steepener Interest Rates - Japanese Curve Steepener NA Interest Rates - Selective EM Debt Interest Rates - Swap Spreads Interest Rates - Sweden Interest Rates - UK Interest Rates - US Curve NA NA NA 18 Interest Rates - US vs UK NA NA Interest Rates - Yield Compression NA NA Volatility - Asian Equities vs US Equities Volatility - Interest Rates NA Volatility - Selective FX NA Volatility - UK Equity vs Rates 7 NA NA NA Cash & Residual FX* Total quarterly contribution (gross) Source: Barclays Point. Data is to end December Past performance is not a guide to future returns. *Residual FX refers to the risk arising from unhedged currency exposure rather than an individual investment idea. POINT Portfolio Return is calculated by the attribution system, Barclays POINT, using a portfolio constructed by a daily feed of positions and may differ from the gross return. The contribution figures are estimates and should be used for indicative purposes only. Data cleansing and retrospective information availability may cause changes. 29

30 Invesco Global Targeted Returns Fund Performance (%) Returns 3 months 6 months 1 year 3 years (Ann.) Since inception (Cum.) (Ann.) (Calendar year) (Calendar year) (Calendar year) Portfolio gross returns month Euribor Out/under performance Portfolio net returns month Euribor Out/under performance Realised volatility 4* Realised volatility of global equities 4* Realised volatility as a percentage of equity volatility 33.09% 31.79% 32.09% 31.49% 30.30% 33.09% Past performance is not a guide to future returns. Source: Invesco as at 31 December Inception date 18 December Performance figures are shown in euro, inclusive of reinvested income and gross of ongoing charges and portfolio transaction costs. The figures do not reflect the entry charge paid by individual investors. Reference index source: Bloomberg, in euro. 3 Fund (A Accumulation EUR share class) performance figures are shown in euro, inclusive of reinvested income and net of ongoing charges and portfolio transaction costs. The figures do not reflect the entry charge paid by individual investors. Reference index source: Bloomberg, in euro. 4 Standard deviation of weekly returns. Global equities represented by MSCI World index. *Periods over one year are annualised. 30

31 Invesco Global Targeted Returns Fund Gross performance versus equities (since inception) dec 13 mrt 14 jun 14 sep 14 dec 14 mrt 15 jun 15 sep 15 dec 15 mrt 16 jun 16 sep 16 dec 16 Invesco Global Targeted Returns Fund MSCI World 100% hedged to euro index, total return Past performance is not a guide to future returns. Source: Invesco and Bloomberg as at 31 December MSCI World 100% hedged to euro index, total return. Inception date 18 December Fund performance figures are shown in euro, inclusive of reinvested income and gross of ongoing charges and portfolio transaction costs. The figures do not reflect the entry charge paid by individual investors. Please see Net Performance slide for the impact of all fund charges, including the ongoing charges. 18 December 2013 =

32 Portfolio review and oversight Portfolio changes A slowly evolving portfolio Period Change Idea Q o o o o Volatility Japanese Yen vs US Dollar Commodity Commodity Carry Currency Russian Ruble vs Canadian Dollar Interest Rates US vs UK Volatility Australian Dollar vs US Dollar Credit Selective Credit (separated Credit US High Yield) Interest Rates Australia vs US (was vs Europe) Volatility Interest Rates (was Volatility UK Equity vs Rates) Interest Rates Selective EM Debt Q o o o Interest Rates Japanese Curve Steepener Volatility Selective FX (rolled in Volatility Japanese Yen vs US Dollar) Interest Rates Swedish Curve Flattener (was Interest Rates Sweden vs Europe) Interest Rates Australia vs US Q Q o o o o o /- +/o o o o Interest Rates Sweden (was Interest Rates Swedish Curve Flattener) Interest Rates Yield Compression (was Interest Rates US vs UK) Equity European Divergence (incorporating Equity Germany) Volatility Selective FX (removed Japanese Yen vs US Dollar leg) Currency Chilean Peso vs Australian and New Zealand Dollars (was Currency Chilean Peso vs Australian Dollar) Volatility Interest Rates Currency Norwegian Krone vs UK Pound Equity US Staples vs Discretionary Interest Rates UK Volatility Selective FX Interest Rates US Curve Inflation US vs UK Interest Rates Yield Compression Interest Rates European Curve Steepener Interest Rates Australia vs US Source: Invesco Perpetual as at 31 December indicates an idea was added, - indicates an idea was removed, o indicates an idea has changed. For illustrative purposes only. Portfolio characteristics may change without notice. 32

33 Removed idea: Currency Norwegian Krone vs UK Pound The Currency Norwegian Krone vs UK Pound initially saw declines due to the fall in oil prices. However, the idea contributed positively to the fund s performance in 2016 as oil prices recovered, boosting the Norwegian currency. At the same time, the pound has faltered pre and post the EU referendum. We review our investment ideas on a regular basis, and the decision was made to remove this idea as it reached its expected return. NOKGBP evolution since inception of the idea 105 Removed from fund feb 14 mei 14 aug 14 nov 14 feb 15 mei 15 aug 15 nov 15 feb 16 mei 16 aug 16 nov 16 Source: Bloomberg as at 30 November February 2014 =

34 Removed idea: Equity US Staples vs Discretionary The Equity US Consumer Staples vs Consumer Discretionary idea was removed from the portfolio in November After the US election results, the subsequent move in US 10 year Treasuries called into question the lower for longer view of yields in the US. While the team believes there are structural constraints on how high bond yields can go, the change in fundamentals and interest rate sensitivity of this idea provided rationale to remove the idea from the portfolio. Consumer Staples Consumer Discretionary vs MSCI World Removed from fund mei 15 aug 15 nov 15 feb 16 mei 16 aug 16 nov Consumer Staples - Consumer Discretionary MSCI World (RHS) Source: Bloomberg as at 30 November

35 Removed idea: Interest Rates UK The Interest rates UK idea was based on a belief that real interest rates in the UK would rise. It had two components: UK interest rates and UK inflation. Post the EU referendum result UK bond yields fell as market participants downgraded their assessment of UK economic growth. The team reviewed the idea as it had started to underperform and made the decision to remove the interest rate component of the idea and isolate a view on UK inflation only. This is now embedded within the Inflation US vs UK idea. Inflation expectations rose rapidly % 3,7 3,5 3,3 3,1 2,9 UK RPI zero coupon swap 5y5y 2,7 jan 16 feb 16 mrt 16 apr 16 mei 16 jun 16 jul 16 aug 16 sep 16 okt 16 nov 16 dec 16 Source: Bloomberg as at 31 December

36 Removed idea: Volatility Selective FX The Volatility Selective FX idea was based on the volatility of the euro rising relative to the volatility of sterling. However as uncertainty continued over the Brexit result, sterling remained very volatile. After a brief increase in the volatility of the euro the team decided to remove the idea from the portfolio as the central return expectation was downgraded and was not sufficient over our two- to three-year time horizon. Pick-up in euro volatility % CBOE/CME FX Euro Volatility index 0 jan 16 feb 16 mrt 16 apr 16 mei 16 jun 16 jul 16 aug 16 sep 16 okt 16 nov 16 dec 16 Source: Bloomberg as at 31 December

37 Index New/Removed idea: Interest Rates US Curve The Interest Rates US Curve idea was added to the portfolio in November 2016, but removed the following month. The idea performed well after a sharp sell-off in the belly of the curve (10-year Treasuries), relative to 5-year and 30-year Treasuries, following the Trump victory. However, this meant the idea s future return expectations were now too limited for inclusion in the fund. Relative bond return reflecting buying the 5-year and 30-year US government bonds and selling two times the 10- year US government bond jan 16 mrt 16 mei 16 jul 16 sep 16 nov 16 jan 17 US Govt 5y-10y-30y Butterfly Source: Bloomberg as at 31 December

38 New idea: Inflation US vs UK We believe the current inflation spike caused by sterling s fall in the UK is overdone. At the same time, we believe inflation expectations in the US are too modest, considering a continued pick-up in wages there. To implement this, we are buying a US inflation swap and selling the UK equivalent. Difference between UK and US 10-year inflation swaps 2,0 1,5 1,0 0,5 0,0-0,5 jan 12 jan 13 jan 14 jan 15 jan 16 UK 10-year inflation swap - US 10-year inflation swap Source: Bloomberg as at 31 December

39 Major implementation changes of ideas Interest Rates Yield Compression (was Interest Rates US vs UK) We still believe US interest rates will converge towards UK interest rates but have added a position in Japanese rates. The US yield curve has steepened and if interest rates start to move back in line with their monetary policy cycles then the difference between long rates in the US versus the UK and Japan will converge, in our view. Inflation US vs UK We have changed the implementation of this investment idea to match the relative size of each leg of the idea. Interest Rates European Curve Steepener We have changed the implementation of this investment idea by buying 5-year forward interest rate swaps rather than 10-year interest rates and are selling 30-year forward interest rate swaps. The weight of the idea has also been increased. Interest Rates Australia vs US We have changed the implementation of this investment idea to remove the duration in the idea. Source: Invesco as at 31 December

40 Invesco Ltd. Commitment to investment excellence High-quality results begin with specialised insight and disciplined oversight. We believe the best investment insights come from specialised investment teams with discrete investment perspectives, operating under a disciplined philosophy and process framework with strong risk oversight. Global Assets under Management of US$820.2/ bn Invesco Asia-Pacific Asia ex-japan Greater China India Japan Australia Locations: Beijing, Hong Kong, Melbourne, Mumbai, Shenzhen, Singapore, Sydney, Taipei, Tokyo Invesco Perpetual Global and regional equity, including UK, European, US, Asian, Japanese and emerging markets Fixed income Multi-asset Location: Henley (UK) Invesco Canada Trimark Investments Canadian, regional, sector and global equity Canadian and global fixed income Balanced portfolios Location: Toronto, Vancouver Invesco PowerShares Index-based exchange traded funds (ETFs) and actively managed ETFs Domestic and international equity Taxable and tax-free fixed income Commodities and currencies Location: Chicago Invesco Fixed Income Global liquidity Stable value Global and US broad fixed income Global alternatives and bank loans Locations: Atlanta, Chicago, Hong Kong, London, Louisville, New York, Palm Harbor, FL, Portland, San Diego Invesco Private Capital Private equity funds of funds Customised portfolios Locations: London, New York, San Francisco Invesco Fundamental Equities US growth equity US value equity International and global growth equity Sector equity Balanced portfolios Locations: Austin, Houston, San Francisco Invesco Quantitative Strategies US, global, regional and emerging equity Long/short strategies Active low volatility Balanced Solutions Locations: Boston, Frankfurt, Melbourne, New York, Tokyo, Toronto Invesco Global Asset Allocation Global macro Risk parity Commodities Active balanced solutions Locations: Atlanta, Frankfurt Invesco Real Estate Global direct real estate investing Global public real estate investing Locations: Atlanta, Beijing, Dallas, Hong Kong, London, Munich, New York, Newport Beach, Paris, San Francisco, Singapore, Sydney, Tokyo Invesco Global Core Equity Emerging markets International and global equity US equity Locations: Atlanta, San Francisco Invesco Unit Investment Trusts Equity trusts Closed-end trusts Tax-free fixed-income trusts Taxable fixed-income trusts Location: Chicago WL Ross & Co. Private Equity: contrarian buyouts, distressed and special situations Locations: Beijing, New Source: Invesco Ltd. as at 30 September Not all of the Invesco brands listed are available in all countries, York, Tokyo* nor are they available on all platforms. Please consult your Invesco representative for more information on any of the brands mentioned. *WL Ross joint venture. 40

41 Appendix

42 UK Equities European Equities Global Equities Emerging Equities US Equities Asian Equities Japan Equities Fixed Interest Multi Asset Henley: A world class investment centre Cross asset-class expertise, with a boutique culture 68 investment personnel with an average of 17 years experience Nick Mustoe Chief Investment Officer 110.5bn of AuM, invested across over 40 countries Investment professionals Average years at Invesco Perpetual Average years industry experience Invesco Perpetual Multi Asset team AUM AUM: 17.5bn across three domiciles Source: Invesco as at 31 December 2016 unless otherwise stated. 1 The Global Equities team is composed of 6 dedicated investment professionals and 14 Portfolio Managers/Analysts drawn from the Invesco Perpetual UK, European, Emerging, US, Asian and Japan equities teams. 2 As at 5 January

43 Clear focus on high quality conviction investing A proven track record Invesco funds in CE and in the UK managed by the Henley investment team 1 Asset Weighted Performance to 31 December 2016 (%) % 54% % 16% 34% % 11% 3 Years 5 Years 4th Quartile 3rd Quartile 2nd Quartile 1st Quartile The data relates to a past period and past returns are not a guarantee of future returns. Source: Invesco, Lipper and Morningstar 2016 as at 31 December Fund rankings are based on the Investment Association (IA) or Morningstar peer rankings of the primary share classes of funds domiciled in Dublin, Luxemburg and the UK. Fund-of-funds and passively managed products are excluded. May not sum due to rounding. 43

44 Seeking additional drivers of return Beyond the traditional balanced portfolio Illustrative Global balanced portfolio* Invesco Global Targeted Returns Fund Equities and interest rates explain 85% of the risk in an illustrative Global Balanced Portfolio 18% of the risk in Invesco Global Targeted Returns Fund Equity risk Interest rate risk Other risks 12 statistically significant factors** help explain the risk in Invesco Global Targeted Returns Fund Past performance is not a guide to future returns. Source: Invesco as at 31 August For illustrative purposes only. Subject to change. *Global balanced portfolio comprises of 60% global equities (30% FTSE 100, 15% Eurostoxx 50, 15% S&P 500) and 40% global bonds (20% Gilts, 20% Markit itraxx indices). Equity risk is represented by % volatility of the MSCI World index, interest rate risk represented by % volatility of 10 year US government bond, other risks, may include, but are not limited to currency risk, credit risk. Period covered: 180 weeks to 31 August Based on a regression analysis. An investment cannot be made directly in an index. 44

45 APT output Evolution of risk By asset type, % Q Q Q Q Q Q Q Q Q Q Q Q Q Commodity Credit Currency Equity Inflation Interest Rates Volatility By equity correlation, % Q Q Q Q Q Q Q Q Q Q Q Q Q Risk-Off Partial Risk-Off Neutral Partial Risk-On Risk-On Source: Invesco Perpetual as at 31 December

46 Invesco Global Targeted Returns Fund Portfolio physical investment Strategies The Multi Asset team has direct access to the fund management capabilities of its Henley-based colleagues and of the broader Invesco group. The Invesco Global Targeted Returns Fund will generally hold between 50-70% of its assets in strategies from within the Invesco Perpetual and Invesco range. Cash Ideas currently expressed through strategies include: Credit Selective Credit Credit US High Yield Equities European Divergence Equities Global Equities Selective Asia Equities UK Cash 1 The cash holdings are used as collateral against derivative positions which are used to implement fund ideas and manage risk. Securities/Strategies Cash will be managed by Invesco Global Liquidity, please refer to the following slide for more information Managed by Invesco Fixed income Counterparty exposures limited Global Credit Research team 1 Cash is expected to be 30-50% of the portfolio, but may be as high as 75%. For illustrative purposes only. This information relates to the portfolio based on market conditions as at 31 December 2016, subject to change. 46

47 Cash management Invesco Global Liquidity Invesco Global Liquidity has US$84.1 billion in assets worldwide The senior investment team has worked together for over a decade The cash allocation pool will be invested in money market instruments The Global Liquidity team aims to achieve: Preservation of principal Liquidity Yield Credit risk is mitigated by investing in a portfolio of high quality and well diversified short-term debt instruments, supported by an independent credit approval and monitoring process. The approved list requires a minimum short-term credit rating of A1/P1/F1. Market risk is mitigated by limiting the weighted average maturity of the portfolio to a maximum of 60 days. Liquidity risk is mitigated by holding a high proportion of cash in overnight deposits and liquid money market securities. Where appropriate, high quality European bills may be used. The aim is to achieve a balance between liquidity and yield. Due to the use of commercial papers and certificates of deposit, the cash portfolio should generate a slightly higher yield than overnight deposits. Source: Invesco as at 31 December

48 Collateral management Reducing counterparty risk 1. Introduction 2. Collateral requirements 3. Collateral coverage 4. Stress testing 5. Re-investment of collateral Invesco has a collateral policy to reduce counterparty risk on OTC derivatives transactions Invesco requires collateral for the following types of transactions: stock lending, reverse repurchase transactions, and OTC derivative transactions In practice, Invesco will generally only accept cash as collateral on OTC derivative transactions OTC derivative transactions won t trigger automatic collateral payments and will be based on appropriate materiality levels, therefore no initial margin exchanged Daily check on concentration and spread rules by portfolio ops; additional reporting provided to compliance and IRF In relation to OTC derivatives we operate a minimum transfer amount under the Credit Support Annex (CSA) where applicable: The fund will obtain or pay collateral where the netted unrealised gain or loss is greater than 250,000 in the base currency of the fund For smaller funds, where 250,000 is significantly more than 0.5% of the NAV, a smaller amount can be agreed and specified in the CSA Where the fund is in receipt of collateral or where collateral is re-invested for more than 20% of NAV then additional checks will need to be completed to ensure compliance with ESMA guidelines Stress tests on the liquidity of the collateral to be implemented if collateral exceeds 30% of the fund s NAV Liquidity stress tests are performed in line with portfolio liquidity stress tests by GPMR Cash collateral received as a result of transactions in OTC derivatives contracts will be held at the custodian of the fund Any cash collateral re-invested is done so in line with the ESMA guidelines For illustrative purposes only. 48

49 Operating platform Process & Controls: Company Boards; CIO Challenge Process; Daily, Monthly & Quarterly Risk Reviews (RPLS); IP Management Group; Internal Audits; Compliance Monitoring; Dealing Commission Committee; Breach Rectification Committee; Derivatives Committee; New Instruments Committee; Departmental Procedures; Breach Reporting; Counterparty Risk Committee; Periodic Management Information Reporting OVERSIGHT Broker Approval & Set Up Process Trade by Trade Broker Assessment Broker Contracts / MiFID / ISDA Price spot checking Transaction Cost Analysis Matching & Confirmation process Execution by G.T Function IM Procedures Compliance In Trade/Post Execution CRD, FMC, FX Connect, Bloomberg, SWIFT, GlobeOp, CTM TRADE EXECUTION Process & Controls Systems Workflow Steps Workflow Steps Systems Process & Controls RESOURCING IT Applications: Peoplesoft; Plateau; Success Factors; SharePoint; Complinet, ServiceNow Source: Invesco Perpetual as at 31 December Process & Controls: Annual Appraisals & Development Plans; Recruitment Process; Continual Professional Development; Regulatory Training; Resource & Succession Planning; Remuneration Policy; Conduct / Ethics Policies; Segregation of Duties 49

50 Oversight and risk Lines of defence First line Second line Third line Robust risk management within the Multi Asset team (APT, scenario testing, liquidity, etc.) Investment Oversight attendance at idea meetings, monthly risk meetings Quarterly oversight meeting chaired by CIO to provide challenge and a forum to assess investment team competence attended by CIO, Investment Oversight and investment team desk heads and Multi Asset fund managers Investment Oversight data access includes daily risk numbers, attribution analysis, ideas research Annual CIO Challenges of managers of sleeve strategies Risk limit system including the assessment of market risk (Riskmetrics VaR), liquidity (RC Banken), counterparty risk (including Counterparty Risk Committee), and leverage Monthly risk meeting with the Independent Risk Function (IRF) includes attendance of Investment Oversight Derivatives committee meets to approves new instruments for Multi Asset funds including attendance from first and second lines Derivatives Risk Management Policy Pre- and post-trade compliance monitoring Internal Audit (includes end-to-end process review) Fund Boards reporting from IRF to the boards For illustrative purposes only. 50

51 Independent risk function Independent Risk Function (IRF) Monitoring Daily Strategy notifications Derivatives oversight APT risk report The Multi Asset team includes the IRF in its notification s to enable the IRF to effectively identify and analyse complex, multi-legged derivative transactions after they are executed The IRF conduct monitoring of executed derivative transactions on an ongoing basis and to provide regular reporting/escalation to the Derivatives Committee The IRF have access to APT and run a daily report for market risk analysis purposes so as to identify any emerging risks early on Risk profile & limit system The IRF, on a daily basis, monitor the risk limits for market risk, liquidity risk, the sum of the notionals of all derivatives used and counterparty risk Monthly Investment risk meetings The Multi Asset team, the Investment Oversight team and the IRF meet at least monthly Quarterly Fund manager reviews The IRF meet with fund managers on a quarterly basis to discuss the key risks of their portfolios For illustrative purposes only. 51

52 Market risk Risk profile & limit system (RPLS) The RPLS includes internal risk limits developed by the Independent Risk Function in consultation with the fund manager taking into account the fund s investment objectives/strategy and risk profile. Green Yellow Amber Red Absolute VaR < Strategy Relative Volatility (upper bound) < N/A Strategy Relative Volatility (lower bound) > N/A Fund Relative Volatility < N/A In addition to Absolute VaR, the RPLS includes three further risk metrics computed by APT: a) each derivative strategy s (standalone, undiversified) Relative Volatility vs the MSCI World index (GBP) upper bound; b) each derivative strategy s (standalone, undiversified) Relative Volatility vs the MSCI World index (GBP) lower bound; and c) the portfolio s (total, diversified) Relative Volatility vs the MSCI World index (GBP). For illustrative purposes only. 52

53 % of portfolio Liquidity risk Monitored by Invesco GPMR using RC Banken system Based on potential outflows (using historical data or scenarios) and portfolio holdings Models largest 1/5 day outflows at a 90 to 99.9% confidence level based on Generalized Extreme Value distribution For each security, a bid-ask spread and tradable volume is estimated from a variety of internal and external sources in both normal and fire sale market conditions 1 Outputs of the model: portfolio breakdown by liquidity level, liquidity ratios, losses given the net outflows Liquidity estimates across time horizons in normal market conditions 100% 75% 50% 25% 0% 68% 91% 99% 100% 100% 100% 1 day 5 days 20 days 60 days 130 days 260 days Source: Invesco as at 23 December The timetable depicts an estimate of the amount of the 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. 1 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. 53

54 Team biographies David Millar: FIA, Head of Multi Asset and Fund Manager Based in Henley-on-Thames, David joined Invesco Perpetual in January 2013 and heads the Multi Asset team. After commencing his investment career with Scottish Widows in 1989, where he qualified as an actuary, David joined the Fixed Interest team at Scottish Widows Investment Partnership in 1996, becoming Head of Bond Strategy and chair of their Bond Policy Group. In 2008, he joined Standard Life Investments as Investment Director in their Multi-Asset Investing team. He was one of the portfolio managers within their Global Absolute Return Strategies capability and was chair of their Bond Investment Group. David holds a BSc (Hons) in Mathematical Statistics from the University of Cape Town and is a Fellow of the Institute and Faculty of Actuaries. Richard Batty: PhD, Fund Manager Based in Henley-on-Thames, Richard joined Invesco Perpetual in March 2013, and serves as a fund manager for the Multi Asset team. Previously, he had worked at Standard Life Investments since 2003 where he was the Global Investment Strategist in their Strategy team which is now part of Standard Life s Multi-Asset Investing team, gaining additional responsibilities for Global Tactical Asset Allocation in Prior to joining Standard Life Investments, he began his investment career at James Capel/HSBC as an equity strategist in During this part of his career, Richard became a highly-rated, senior member of its industry renowned Economics and Strategy group. In 1994, he was awarded a PhD in Financial Economics from Brunel University, where he was a part-time research assistant and taught both graduate and undergraduate students. Dave Jubb: FIA, Fund Manager Based in Henley-on-Thames, Dave joined the company in March 2013, and serves as a Fund Manager for the Multi Asset team. Prior to this, he worked at Standard Life Investments where he was an Investment Director, Multi-Asset Investing, and was one of the fund managers of the firm s Global Absolute Return Strategies capability. Dave joined Standard Life Group in 1982 as a computer programmer and after a period in the Actuarial Department of Standard Life Canada, he joined Standard Life Investments where he held positions as a fixed income fund manager and strategist before joining their Multi-Asset Investment team in Dave graduated from St Andrews University in 1982 with a BSc (Hons) in Mathematics and is a Fellow of the Institute and Faculty of Actuaries. Sebastian Mackay: Fund Manager, Multi Asset Based in Henley-on-Thames, Sebastian joined Invesco Perpetual in August 2016 and serves as a fund manager for the Multi Asset team. He began his career at Scottish Widows Investment Partnership in 2000, where he was a senior economist for the Fixed Interest team prior to joining the Aggregate Bonds team as an investment director. In 2011, Sebastian moved to Standard Life Investments, where he was an investment director for the Fixed Income team, before joining the Multi-Asset Investing team in Sebastian holds an MA (Hons) in Economics from the University of Edinburgh and an MSc in Financial Economics from the University of London, School of Oriental and African Studies. Source: Invesco as at 31 December Team composition is subject to change without notice. 54

55 Team biographies (continued) Gwilym Satchell: PRM TM Risk Manager Based in Henley-on-Thames, Gwilym joined the company in March Prior to this, he commenced his career in 2008 at Standard Life Investments, where he was involved in Multi-Asset Investing risk management, in particular the development of scenario analysis techniques. In addition, he was responsible for managing a range of liability-driven investment (LDI) funds. Gwilym holds the PRM designation which is an independent validation of skills and commitment to the highest standard of professionalism, integrity, and best practices within the risk management profession. He graduated from Warwick University in 2005 with a degree in Computer Science, and gained a Masters degree at the University of Edinburgh Business School in Clive Emery: Product Director Based in Henley-on-Thames, Clive joined the company in July 2015 and serves as a Product Director for the Multi Asset team. Clive commenced his career with Merrill Lynch in 1997, where he advised asset managers on European Equities. In 2004, he joined Dresdner Kleinwort Benson as a Director in their Equities Division becoming the Head of their Equity Hedge Fund team in He went on to join Société Générale in 2007 as the Head of their Equity Hedge Fund Advisory team. Clive graduated from the University of Exeter in 1995 with a BSc (Hons) in Economics & Politics and in 1997 he gained a Masters from the London School of Economics in the Politics & Economics of Transition for Eastern Europe. Danielle Singer: CFA, Portfolio Director Based in New York, Danielle serves as a Portfolio Director for Invesco Perpetual s Multi Asset team. Before joining Invesco in 2014, Danielle was a strategist of the Global Investment Solutions (GIS) team at UBS. Her responsibilities included participating in the review and setting of multi-asset and currency strategies and assisting clients as part of the GIS initiative. Prior to that, Danielle was an account manager for UBS's Institutional Investment Management group and an internal investment consultant during her more than 10 years with the firm. Danielle started her investment career in 2002 in financial services. She earned a BA degree at Middlebury College and an MBA at the University of Chicago with concentrations in analytic finance and econometrics. She holds the Series 3, 7 and 66 registrations. Danielle is a CFA charterholder and a member of the New York Society of Security Analysts. Georgina Taylor: Research Director Based in Henley-on-Thames, Georgina joined our company in June 2013 and is the Research Director for the Multi Asset team. Georgina commenced her career with HSBC in 2001 as an Equity Strategist. She went on to join the Equity Strategy team at Goldman Sachs in 2004 where she wrote global equity and asset allocation research. Georgina gained asset management experience at Legal & General Investment Management, contributing to the overall asset allocation outlook for the firm and multi asset funds. Before joining Invesco Perpetual Georgina was head of Equity Strategy, EMEA, at State Street Global Markets, producing and presenting on asset allocation and equity research. Georgina holds a BSc (Hons) in Economics from the University of Bath. Source: Invesco as at 31 December Team composition is subject to change without notice. 55

56 Team biographies (continued) Saul Shaul: Fund Analyst Based in Henley-on Thames, Saul joined the company in May 2012 as an IT contractor working in front office IT and was later assigned to the implementation project working on the technical build of Invesco Perpetual s Multi Asset investment platform. In January 2014 Saul joined the Multi Asset team as a fund analyst. Saul commenced his career in front office IT in 2006 and has worked as an IT contractor on several projects involving Fund Management and Trading systems. He graduated from The University of Portsmouth in 1998 with a degree in International Finance and Trade. Steven Hawes: CFA, Research Analyst Based in Henley-on-Thames, Steve joined the company in July 2010, and since January 2014 has served as a Research Analyst within the Multi Asset team. Steve joined Invesco Perpetual as a Client Services Executive, specialising in investment performance. He graduated from the Sheffield Hallam University in 2010 with a BA (Hons) in Business and Financial Services. He passed the Investment Management Certificate (IMC) in January 2013 and is a Chartered Financial Analyst (CFA ) charterholder. Dilek Ulu: PhD, Fund Analyst* Based in Henley-on-Thames, Dilek joined the company in November 2013, and since January 2017 has served as a Fund Analyst within the Multi Asset team. Dilek joined Invesco Perpetual as a Senior Risk Analyst in the Independent Risk Function where she worked as a lead investment risk analyst. She was responsible for risk oversight and monitoring activities for all funds managed within Europe, including the multi asset portfolios. Dilek holds a first degree in Economics and a Masters degree in Finance and Accounting from Haceteppe University. In 2013, Dilek was awarded a PhD in Finance from the University of Essex, where she worked on various projects covering risk management and derivatives while also teaching both postgraduate and undergraduate students. Mike Marshall: CFA, Risk Analyst Based in Henley-on-Thames, Michael joined the company in June 2013, and since March 2015 has served as a Risk Analyst within the Multi Asset team. Michael joined Invesco Perpetual as a Senior Valuations Analyst and subsequently managed the OTC Derivatives and Alternatives team, reporting to the Head of EMEA Portfolio Services. Prior to joining Invesco Perpetual, he held various Derivative Analyst positions at Tier 1 investment banks and other asset management firms working in a broad range of derivatives-related fields. Michael graduated from the University of Cape Town in 2006 with a Bachelor of Business Science (Hons) in Finance and Accounting and is a Chartered Financial Analyst (CFA ) charterholder. Source: Invesco as at 31 December Team composition is subject to change without notice. *Dilek Ulu joined the team in January

57 Other biographies Simon Ferguson: CFA, Senior Dealer, Alternatives and Foreign Exchange Based in Henley-on-Thames, Simon Ferguson joined Invesco in 2013 as a senior trader on the Alternatives and FX Trading desk, covering global derivative markets. Simon was previously a co-portfolio manager at Cayuga Capital, starting in July 2010 and implementing investment views through derivative instruments across the equity, fixed income, credit, FX and commodity markets. From 2002, he worked for Hermes Investment Management, running the Tactical Asset Allocation Overlay for the British Telecom pension scheme. Prior to that, Simon worked for a number of sell-side firms from 1993, including Goldman Sachs, Schroders and Julius Baer (Paris). Simon graduated from the University of Wales, Bangor, with a first-class degree in Economics. Simon also holds the Chartered Financial Analyst designation and has recently passed the Chartered Institute for Securities & Investment Level 4 Derivatives (IAD) exam. Dominic Baker: Fund Manager, Portfolio Implementation Based in Henley-on-Thames, Dominic joined Invesco Perpetual in February 2015 and has over 20 years experience as an equity fund manager. He started his career at Framlington in 1992 and moved to Threadneedle Investments in 2000 where he spent the following 11 years. He covered a variety of mandates on the European equities team before being appointed Head of UK Institutional Equities, which made him personally responsible for over 3bn of assets. More recently he has covered global equities at Tesco Pension Investment and UK equities at London based hedge fund, Zadig Asset Management. He is an associate member of the UK Society of Investment Professionals and has a BSc Hons in Business Studies with a speciality in Finance from the City University Business School Zander Sen: Fund Manager, Portfolio Implementation Based in Henley-on-Thames, Zander joined Invesco Perpetual in June He began his career at Swiss Life Asset Management (UK) in 1999, and subsequently moved on to King & Shaxson Asset Management and Dalton Strategic Partnership as a fund manager. At Schroders, he covered quantitative equity products, before joining HSBC Global Asset Management where he was responsible for managing a range of exchange-traded funds. Zander holds a BSc degree in Applied Physics and an MSc degree in Finance from the University of Strathclyde. He is a Chartered Financial Analyst (CFA ) charterholder. Alexandra Ivanova: Deputy Fund Manager, Portfolio Implementation Based in Henley-on-Thames, Alexandra joined the Invesco Perpetual Fixed interest team in June 2015 as a Deputy Fund Manager, Fixed Income Portfolio Implementation. Alexandra began her career with Municrest Investment Management Co., based in the US, in 2001 working as a fixed-income quantitative research analyst. In 2006 she joined Invesco Fixed Income in Louisville, KY, as an investment associate and in 2008 transferred to Invesco Fixed Income in London as a fixed-income quantitative research analyst. Alexandra holds MS in International Economics from the Yakutsk State University, Russia and BS in Finance and MBA degrees from the University of Louisville, KY. She is a Chartered Financial Analyst (CFA ) charterholder. Source: Invesco as at 31 December Team composition is subject to change without notice. 57