Global Investment Series Annual Report Authorised Corporate Director s Short Report

Transcription

1 Global Investment Series Annual Report Authorised Corporate Director s Short Report Issued October 2017 For the year 1 September 2016 to 31 August 2017

2 Contents 01 Invesco Perpetual Global Balanced Index Fund 08 Invesco Perpetual Global Equity Fund 17 Invesco Perpetual Global Equity Income Fund 27 Invesco Perpetual Global ex UK Core Equity Index Fund 35 Invesco Perpetual Global ex UK Enhanced Index Fund 45 Invesco Perpetual Global Opportunities Fund Further Information This Short Report, which is unaudited, has been prepared by the Authorised Corporate Director (the Manager ) in respect of the Invesco Perpetual Global Investment Series (the Company ) in accordance with the Open-Ended Investment Companies Regulations The Manager s Long Form Financial Statements, and the Prospectus which contains a written statement of the Terms and Conditions of the Company, can be obtained using the contact details shown on the back cover. Terms used in this report shall have the same meaning as defined in the Prospectus. Remuneration policy Following recent changes to the rules applicable to UCITS management companies (such as the Manager, Invesco Fund Managers Limited), the Manager adopted on 18 March 2016 a revised remuneration policy which is consistent with the new remuneration principles applicable to UCITS management companies. Its purpose is to ensure that the remuneration of the staff of the Manager is consistent with and promotes sound and effective risk management, does not encourage risk-taking which is inconsistent with the risk profiles, rules or instruments of incorporation of itself and the UCITS it manages (including the Company) and does not impair the Manager s compliance with its duty to act in the best interests of the UCITS it manages. Further information is available in the Manager s UCITS Remuneration Policy document which can be obtained from the Literature and forms section of our website ( Paper copies can be obtained, free of charge, upon request to the Manager using the contact details shown on the back cover. The rules require the Manager to disclose in the Company s annual report, certain quantitative disclosures concerning the Manager s remuneration policy, including: (i) the total and aggregate amount of remuneration paid by the Manager to its staff (including any amounts paid directly by the Company); (ii) the number of beneficiaries; (iii) a description of how the remuneration and benefits have been calculated; and (iv) certain information regarding the Manager s oversight of its remuneration policy and details of any changes to the Manager s remuneration policies since the previous annual report. However, as noted above, the revised policy has been in place for less than a full performance period. Consequently, in accordance with the relevant rules, the aforementioned disclosures are not included in this report as the available partial-year information would not provide materially relevant, reliable, comparable and clear information to investors. The Manager will disclose the quantitative UCITS remuneration data in the next annual report for the Company where information for a full performance year will be available.

3 Invesco Perpetual Global Balanced Index Fund Investment objective and policy The Sub-Fund aims to achieve long term capital growth with some income generation from investment primarily through a portfolio of investments in global equities and bonds. In pursuing this objective, the fund managers may include investments that they consider appropriate which include transferable securities, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions as detailed in Appendix 2 of the most recent Prospectus. Risk profile 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. Over time, inflation may erode the value of investments. The Sub-Fund may use derivatives (complex instruments) in an attempt to reduce the overall risk of its investments, reduce the costs of investing and/or generate additional capital or income, although this may not be achieved. The use of such complex instruments may result in greater fluctuations of the value of the Sub-Fund. The Manager, however, will ensure that the use of derivatives within the Sub-Fund does not materially alter the overall risk profile of the Sub-Fund. The Sub- Fund s performance may be adversely affected by variations in the relative strength of world currencies or if Sterling strengthens against those currencies. Strategy, review and outlook The Sub-Fund rose by 13.7 over the twelve months to the end of August 2017, compared to a rise of 11.0 by the benchmark Invesco Composite Index 1. This placed the Sub-Fund in the first quartile of its peer group, the IA Mixed Investment Shares Sector NR, which ended the period on average Fund and sector average performance data source: Lipper, in Sterling, with income reinvested and net of the ongoing charge and portfolio transaction costs. Performance figures are based on the Accumulation (No Trail) share class. The figures do not reflect the entry charge paid by individual investors. Invesco Composite Index 1 data source: Eagle Pace, total return, in Sterling. Past performance is not a guide to future returns. The Sub-Fund consists of global equities, bonds and cash. The weighting of the three asset classes in the Sub-Fund is determined by our Tactical Asset Allocation Model. The equity range is between 50 and 85 and the bond range between 0 and 40. Over 50 of the Sub-Fund will always be invested in UK assets. The Sub-Fund s weighting in equities fluctuated during the review period. Until December 2016 we had a moderately bullish signal for global 01 Invesco Perpetual Global Investment Series

4 Invesco Perpetual Global Balanced Index Fund equities which changed to a bullish signal until August Our view was based on attractive valuation, positive trends, a low level of risk aversion and a solid economic environment. Bond allocation ranged between 15 and 20. The equity proportion of the Sub-Fund is actively managed and returned a positive absolute performance. Our performance is generated through a quantitative bottom-up investment process driven by stock selection and based on four concepts: Earnings Expectations, Market Sentiment, Management & Quality and Value. Relative risk is controlled with the help of an optimiser, an analysis tool that recommends trades to maximise portfolio exposure to the selected stocks within pre-determined risk/return parameters. In terms of portfolio construction, we tightly constrain the risk taken in sectors, countries and currencies. Looking at the sources of active return, stock selection helped performance. Especially, our exposure to stocks with attractive Value scores added to performance. Other factors, like implied active sector weightings had a positive impact on relative performance. Here, our underweights in Energy stocks compared to the index added some basis points. Our overweight in AUD compared to the index also helped over the reporting period. Our diversified and disciplined approach to stock selection favours companies that, in our view, are attractively valued, have good earnings and price momentum and have management that acts in the interest of shareholders. We believe that we can add value through the systematic application of fundamental and behavioural insights. Disciplined portfolio construction and cost effective trading are integral to our investment process, which we believe should help us preserve value added through stock selection and reduce the probability of significant underperformance. Michael Fraikin and Alexander Uhlmann, Fund Managers Where Michael Fraikin and Alexander Uhlmann have expressed opinions, they are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco Perpetual investment professionals. 1 The Invesco Composite Index is calculated by reference to the FTSE All-Share ex Investment Trusts Index (50), the MSCI World ex UK Index (Net Total Return) (25), the FTSE Actuaries UK Conventional Gilts All Stocks Index (15) and UK 3 Month GBP LIBOR (10), expressed in Sterling and total return. These indices, in the proportions indicated, are in line with the expected asset allocation of the Sub-Fund. 02 Invesco Perpetual Global Investment Series

5 Invesco Perpetual Global Balanced Index Fund Fund facts Launch date 31 October 2006 Fund size at million Accounting date 31 August Ex-dividend date 1 September Distribution payable 31 October Fund Management Fee - No Trail class 0.70 per annum Entry charge 5 Operating charges figure for the year ended No Trail class 0.70 Operating charges figure for the year ended No Trail class 0.70 The operating charges figure is equivalent to the FMF, which we also refer to as the ongoing charge in our Key Investor Information Documents (KIIDs) and our literature. 03 Invesco Perpetual Global Investment Series

6 Invesco Perpetual Global Balanced Index Fund Risk and Reward Profiles for the year 1 September 2016 to 31 August 2017 Lower Risk Higher Risk Typically lower rewards Typically higher rewards The risk category shown is not a measure of capital losses or gains, but of how significant the rises and falls in the share class prices have been historically. For example a share class whose price has experienced significant rises and falls will be in a higher risk category, whereas a share class whose price has experienced less significant rises and falls will be in a lower risk category. As the Share Class risk category has been calculated using historical data, it may not be a reliable indication of the Share Class future risk profile. Please note that the Share Class risk category may change in the future and is not guaranteed. The lowest risk category does not mean a risk free investment. A share class in risk category 4 indicates its price has experienced moderate rises and falls historically. The risk category for this Sub-Fund changed from 5 to 4 on 1 February For more information on our Sub-Funds risk and reward profiles, please refer to the most up to date relevant Sub-Fund and share class specific Key Investor Information Documents (KIIDs), which are available at or by contacting us. 04 Invesco Perpetual Global Investment Series

7 Invesco Perpetual Global Balanced Index Fund Distributions to to p p Accumulation shares (No Trail) Payable 31 October Price and revenue record by share class Highest Lowest Net share share revenue price price per share Accounting year p p p Accumulation shares (No Trail) Year ended 31 August Year ended 31 August Year ended 31 August Invesco Perpetual Global Investment Series

8 Net asset value Invesco Perpetual Global Balanced Index Fund Net asset value per share p Net asset value per share p Percentage growth Accumulation shares (No Trail) Net asset value per share calculated on the last business day of the period at bid market value at close of business. at Performance close of business. to 31 August 2017 Invesco Perpetual Global Balanced Index Fund (Accumulation shares (No Trail)) Invesco Composite Index 1 IA Mixed Investment Shares Sector NR Fund ranking Since Since Since Percentage growth Since Since /138 23/135 35/119 17/102 11/58 1 The Invesco Composite Index is calculated by reference to the FTSE All-Share ex Investment Trusts Index (50), the MSCI World ex UK Index (Net Total Return) (25), the FTSE Actuaries UK Conventional Gilts All Stocks Index (15) and 3 Month LIBOR (10), expressed in Sterling and total return. These indices, in the proportions indicated, are in line with the expected asset allocation for the Sub-Fund. Standardised rolling 12 month performance Percentage growth Invesco Perpetual Global Balanced Index Fund (Accumulation shares (No Trail)) This standardised past performance information is updated on a quarterly basis. Should you require up to date past performance information, this is available on our website or by contacting us. Fund and sector average performance data source: Lipper, in Sterling, with income reinvested and net of the ongoing charge and portfolio transaction costs. The figures do not reflect the entry charge paid by individual investors. Invesco Composite Index data source: Eagle Pace, total return, in Sterling. The value of investments and any income from them will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Past performance is not a guide to future returns. Current tax levels and reliefs may change. Depending on individual circumstances, this may affect investment returns. 06 Invesco Perpetual Global Investment Series

9 Invesco Perpetual Global Balanced Index Fund Portfolio classification As at As at Investment Equities Australia Canada China Denmark Finland 0.52 France Germany Israel 0.41 Japan Luxembourg Netherlands Norway Republic of Ireland 0.88 Singapore 0.16 Sweden 0.87 Switzerland United Kingdom United States Bonds Futures and Derivatives Total investments Net other assets Net assets largest investments As at 31 August 2017: As at 31 August 2016: UK Treasury /12/ UK Treasury /9/ Invesco Global Structured Equity Fund 6.07 Royal Dutch Shell 3.57 BP 2.52 GlaxoSmithKline 2.46 British American Tobacco 2.21 Vodafone 2.17 Rio Tinto 1.99 HSBC 1.94 UK Treasury /9/ Invesco Global Structured Equity Fund 5.99 UK Treasury /12/ UK Treasury /9/ British American Tobacco 2.76 GlaxoSmithKline 2.68 BP 2.60 Royal Dutch Shell 2.32 Vodafone 2.25 National Grid Invesco Perpetual Global Investment Series

10 Invesco Perpetual Global Equity Fund Investment objective and policy The Sub-Fund aims to achieve capital growth by investing in equities quoted on world stock markets. In pursuing this objective, the fund managers may include investments that they consider appropriate which include transferable securities, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions as detailed in Appendix 2 of the most recent Prospectus. Risk profile 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. Over time, inflation may erode the value of investments. Although the Sub-Fund invests mainly in established markets, it can invest in emerging and developing markets, where there is potential for a decrease in market liquidity, which may mean that it is not easy to buy or sell securities. There may also be difficulties in dealing and settlement, and custody problems could arise. The Sub-Fund may use derivatives (complex instruments) in an attempt to reduce the overall risk of its investments, reduce the costs of investing and/or generate additional capital or income, although this may not be achieved. The use of such complex instruments may result in greater fluctuations of the value of the Sub-Fund. The Manager, however, will ensure that the use of derivatives within the Sub-Fund does not materially alter the overall risk profile of the Sub-Fund. The Sub-Fund s performance may be adversely affected by variations in the relative strength of world currencies or if Sterling strengthens against those currencies. Strategy, review and outlook The Sub-Fund rose by 23.1 over the twelve months to the end of August 2017, compared to a rise of 19.7 by the benchmark, the MSCI AC World Index. This placed the Sub-Fund in the first quartile of its peer group, the IA Global Sector NR, which ended the period an average of Fund and sector average performance data source: Lipper, in Sterling, with income reinvested and net of the ongoing charge and portfolio transaction costs. Performance figures are based on the Z Accumulation share class. The figures do not reflect the entry charge paid by individual investors. MSCI AC World Index data source: Lipper LIM, total return, in Sterling. Past performance is not a guide to future returns. Global equity markets reached all-time highs in July after more than US$10 trillion was added to their value in the first half of 2017 (source: Bloomberg, as at 17 July 2017). Investor appetite for risk remained robust with tolerance across many different asset classes at a three-year high, based on measures of volatility, and in line with levels seen before the 2008 global financial crisis (source Citigroup/Bloomberg, as at 17 July 2017). Economic data largely supported the global growth story over the twelve months. Yet potential headwinds remain. Geopolitical tensions, the struggles of the Trump administration, another terror attack in Europe and Tropical Storm Harvey all dominated headlines in August, yet global equity markets shrugged off the tension to remain in positive territory. 08 Invesco Perpetual Global Investment Series

11 Invesco Perpetual Global Equity Fund Strong Sub-Fund performance was largely due to stock selection in US financials, industrials, materials and consumer stocks. The portfolio has large positions in US financials, in particular, JPMorgan Chase, Citigroup and First Republic Bank, having long believed that the US financial system was recovering well from the events of the global financial crisis. The sector performed particularly strongly this year after the US Federal Reserve determined that all 34 big banks had sufficiently strong enough capital positions to significantly increase share buybacks and dividend payments in their annual Comprehensive Capital Analysis and Review (the first time in seven years that all banks had been cleared). Within the portfolio, JPMorgan Chase announced a quarterly dividend increase of 12 and an increased share buyback of US$19bn. Citigroup doubled its dividend and approved a US$15bn buyback. Their respective share prices benefited as a result. The materials and industrials sectors have benefitted from the recovery in global economic activity this year. Overall, the global economy continues to expand at a healthy pace across regions and the picture remains solid into year end. The industrials sector also experienced a boost from airlines with the share price of International Consolidated Airlines rising on increased profit expectations. Growing consumer demand against a backdrop of solid economic growth has also seen stocks such as Thomas Cook increase on strong revenue growth and good profitability. Relative to the index, the Sub-Fund s overweight exposure to the struggling energy sector detracted from returns, despite strong stock selection. We acknowledge our contrarian views, nevertheless we continue to see the sector as being attractively valued with improving cash generation, which underpins the current dividend payments. The construction of the Sub-Fund s portfolio is entirely driven by stock selection, seeking to invest in the best investment ideas from anywhere in the world. Our approach seeks to identify companies trading at a discount to their long term intrinsic value. Such discounts are often caused by the trading activities of shorter term market participants. We seek to exploit these pricing anomalies. Nick Mustoe (lead) and the Invesco Perpetual Global Equity Group 1, Fund Managers Where Nick Mustoe and the fund managers in Invesco Perpetual Global Equity Group have expressed opinions, they are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco Perpetual investment professionals. 1 The Invesco Perpetual Global Equity Group comprises CIO Nick Mustoe, Fund Managers John Surplice, Tony Roberts, Ian Hargreaves, Stephen Anness, Martin Walker, Dean Newman and Simon Laing, Investment Strategist Martin Weiss and Product Manager Arwel Green. 09 Invesco Perpetual Global Investment Series

12 Invesco Perpetual Global Equity Fund Fund facts Launch date 30 September 1989 Fund size at ,533 million Accounting date 31 August Ex-dividend date 1 September Distribution payable 31 October Fund Management Fee - Trail classes 1.67 per annum - No Trail classes 1.17 per annum - Z classes 0.92 per annum - Y classes 0.87 per annum Entry charge 5 Operating charges figure for the year ended Trail classes No Trail classes Z classes Y classes 0.87 Operating charges figure for the year ended Trail classes No Trail classes Z classes Y classes 0.87 The operating charges figure is equivalent to the FMF, which we also refer to as the ongoing charge in our Key Investor Information Documents (KIIDs) and our literature. 10 Invesco Perpetual Global Investment Series

13 Invesco Perpetual Global Equity Fund Risk and Reward Profiles for the year 1 September 2016 to 31 August 2017 Lower Risk Higher Risk Typically lower rewards Typically higher rewards The risk category shown is not a measure of capital losses or gains, but of how significant the rises and falls in the share class prices have been historically. For example a share class whose price has experienced significant rises and falls will be in a higher risk category, whereas a share class whose price has experienced less significant rises and falls will be in a lower risk category. As the Share Class risk category has been calculated using historical data, it may not be a reliable indication of the Share Class future risk profile. Please note that the Share Class risk category may change in the future and is not guaranteed. The lowest risk category does not mean a risk free investment. A share class in risk category 5 indicates its price has experienced significant rises and falls historically. The risk category for this Sub-Fund changed from 6 to 5 on 1 December For more information on our Sub-Funds risk and reward profiles, please refer to the most up to date relevant Sub-Fund and share class specific Key Investor Information Documents (KIIDs), which are available at or by contacting us. 11 Invesco Perpetual Global Investment Series

14 Invesco Perpetual Global Equity Fund Distributions to to p p Accumulation shares Payable 31 October Accumulation shares (No Trail) Payable 31 October Z Accumulation shares Payable 31 October Y Accumulation shares Payable 31 October Income shares Payable 31 October Income shares (No Trail) Payable 31 October Z Income shares Payable 31 October Y Income shares Payable 31 October Invesco Perpetual Global Investment Series

15 Invesco Perpetual Global Equity Fund Price and revenue record by share class Highest Lowest Net share share revenue price price per share Accounting year p p p Accumulation shares Year ended 31 August Year ended 31 August Year ended 31 August Accumulation shares (No Trail) Year ended 31 August Year ended 31 August Year ended 31 August Z Accumulation shares Year ended 31 August Year ended 31 August Year ended 31 August Y Accumulation shares Year ended 31 August Year ended 31 August Year ended 31 August Income shares Year ended 31 August Year ended 31 August Year ended 31 August Income shares (No Trail) Year ended 31 August Year ended 31 August Year ended 31 August Z Income shares Year ended 31 August Year ended 31 August Year ended 31 August Y Income shares Year ended 31 August Year ended 31 August Year ended 31 August Invesco Perpetual Global Investment Series

16 Invesco Perpetual Global Equity Fund Net asset value Net asset value per share p Net asset value per share p Percentage growth Accumulation shares Accumulation shares (No Trail) Z Accumulation shares Y Accumulation shares Income shares Income shares (No Trail) Z Income shares Y Income shares Net asset value per share calculated on the last business day of the period at bid market value at close of business. 14 Invesco Perpetual Global Investment Series

17 Invesco Perpetual Global Equity Fund Performance to 31 August 2017 Invesco Perpetual Global Equity Fund (Z Accumulation shares) 1 MSCI AC World Index* IA Global Sector NR Fund Ranking Since Since Since Percentage growth Since Since /194 25/ /174 40/141 38/92 * Reference benchmark for performance comparison purposes only. Standardised rolling 12 month performance Percentage growth Invesco Perpetual Global Equity Fund (Z Accumulation shares) This standardised past performance information is updated on a quarterly basis. Should you require up to date past performance information, this is available on our website or by contacting us. Fund and sector average performance data source: Lipper, in Sterling, with income reinvested and net of the ongoing charge and portfolio transaction costs. The figures do not reflect the entry charge paid by individual investors. MSCI AC World Index data source: Lipper LIM, total return, in Sterling. The value of investments and any income from them will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Past performance is not a guide to future returns. Current tax levels and reliefs may change. Depending on individual circumstances, this may affect investment returns. 1 Effective 18 April 2016, the primary share class changed from Income share class to Z Accumulation share class. Performance figures are based on the Z Accumulation share class. As this was launched on 12 November 2012, for the years prior to this launch date, performance figures are based on the Accumulation share class, without any adjustment for fees. 15 Invesco Perpetual Global Investment Series

18 Invesco Perpetual Global Equity Fund Portfolio classification As at As at Investment Equities Brazil Canada China Finland France Germany Hong Kong India Italy Japan Mexico 0.87 Netherlands Norway Philippines 0.01 Russia South Korea Spain 0.31 Taiwan 1.20 Switzerland United Kingdom United States Total investments Net other assets Net assets For the year ended 31 August 2017, unquoted securities amounted to 0.00 (31 August ) of the Net Asset Value of the Sub-Fund. 10 largest investments As at 31 August 2017: As at 31 August 2016: Citigroup 3.21 Deutsche Post 2.51 ebay 2.47 JPMorgan Chase 2.43 MasterCard 2.31 Michelin 2.25 Chevron 2.24 Airbus 2.09 Royal Dutch Shell 2.09 Capgemini 2.08 Citigroup 3.14 ebay 2.89 Novartis 2.67 Airbus 2.33 MasterCard 2.31 JPMorgan Chase 2.30 Royal Dutch Shell 2.29 Priceline 2.25 Capgemini 2.20 Pfizer Invesco Perpetual Global Investment Series

19 Invesco Perpetual Global Equity Income Fund Investment objective and policy The Sub-Fund aims to generate a rising level of income, together with long-term capital growth, investing primarily in global equities. In pursuing this objective, the fund managers may include investments that they consider appropriate which include transferable securities, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions as detailed in Appendix 2 of the most recent Prospectus. Risk profile 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. Over time, inflation may erode the value of investments. As one of the key objectives of the Sub-Fund is to provide income, the ongoing charge is taken from capital rather than income. This can erode capital and reduce the potential for capital growth. Although the Sub-Fund invests mainly in established markets, it can invest in emerging and developing markets, where there is potential for a decrease in market liquidity, which may mean that it is not easy to buy or sell securities. There may also be difficulties in dealing and settlement, and custody problems could arise. The Sub-Fund may use derivatives (complex instruments) in an attempt to reduce the overall risk of its investments, reduce the costs of investing and/or generate additional capital or income, although this may not be achieved. The use of such complex instruments may result in greater fluctuations of the value of the Sub-Fund. The Manager, however, will ensure that the use of derivatives within the Sub-Fund does not materially alter the overall risk profile of the Sub-Fund. The Sub- Fund s performance may be adversely affected by variations in the relative strength of world currencies or if Sterling strengthens against those currencies. Strategy, review and outlook The Sub-Fund rose by 18.3 over the twelve months to the end of August 2017, compared to a rise of 18.8 by the benchmark, the MSCI World Index TR. This placed the Sub-Fund in the second quartile of its peer group, the IA Global Equity Income Sector NR, which ended the period an average of Fund and sector average performance data source: Lipper, in Sterling, with income reinvested and net of the ongoing charge and portfolio transaction costs. Performance figures are based on the Z Accumulation share class. The figures do not reflect the entry charge paid by individual investors. MSCI World Index TR data source: Lipper LIM, total return, in Sterling. Past performance is not a guide to future returns. Global equity markets reached all-time highs in July after more than US$10 trillion was added to their value in the first half of 2017 (source: Bloomberg, as at 17 July 2017). Investor appetite for risk remained robust with tolerance across many different asset classes at a threeyear high, based on measures of volatility, and in line with levels seen before the 2008 global financial crisis (source Citigroup/Bloomberg, as at 17 July 2017). Economic data largely supported the global growth story over the twelve months. Yet potential headwinds remain. Geopolitical tensions, the struggles of the Trump administration, another terror attack in Europe and Tropical Storm Harvey all dominated headlines in August, yet global equity markets shrugged off the tension to remain in positive territory. 17 Invesco Perpetual Global Investment Series

20 Invesco Perpetual Global Equity Income Fund Strong Sub-Fund performance was largely due to stock selection in US financials. The portfolio has large positions in the sector, in particular, JPMorgan Chase and Citigroup, having long believed that the US financial system was recovering well from the events of the global financial crisis. The sector performed particularly strongly this year after the US Federal Reserve determined that all 34 big banks had sufficiently strong enough capital positions to significantly increase share buybacks and dividend payments in their annual Comprehensive Capital Analysis and Review (the first time in seven years that all banks had been cleared). Within the portfolio, JPMorgan Chase announced a quarterly dividend increase of 12 and an increased share buyback of US$19bn. Citigroup doubled its dividend and approved a US$15bn buyback. Their respective share prices benefited as a result. Nick Mustoe (lead) and the Invesco Perpetual Global Equity Income Group 1, Fund Managers Where Nick Mustoe and the fund managers in Invesco Perpetual Global Equity Income Group have expressed opinions, they are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco Perpetual investment professionals. 1 The Invesco Perpetual Global Equity Income Group comprises CIO Nick Mustoe, Mark Barnett Head of UK Equities, and Fund Managers Simon Clinch, Stephanie Butcher, Tim Dickson, Tony Roberts and Andrew Hall. Stock selection within the struggling energy sector was also positive, though the Sub-Fund s overweight exposure relative to the MSCI World benchmark index detracted from returns. We acknowledge our contrarian views, nevertheless we continue to see the sector as being attractively valued with improving cash generation, which underpins the current dividend payments. Both country and sector exposures are as a result of our bottom-up stock selection process. The Sub-Fund reflects the most attractive risk-adjusted share price upside opportunities that we have identified through our research process. 18 Invesco Perpetual Global Investment Series

21 Invesco Perpetual Global Equity Income Fund Fund facts Launch date 2 March 2009 Fund size at million Accounting date 31 August Ex-dividend date 1 March and 1 September Distribution payable 30 April and 31 October Fund Management Fee - Trail classes 1.67 per annum - No Trail classes 1.17 per annum - Z classes 0.92 per annum - Y classes 0.87 per annum Entry charge 5 Operating charges figure for the year ended Trail classes No Trail classes Z classes Y classes 0.87 Operating charges figure for the year ended Trail classes No Trail classes Z classes Y classes 0.87 The operating charges figure is equivalent to the FMF, which we also refer to as the ongoing charge in our Key Investor Information Documents (KIIDs) and our literature. 19 Invesco Perpetual Global Investment Series

22 Invesco Perpetual Global Equity Income Fund Risk and Reward Profiles for the year 1 September 2016 to 31 August 2017 Lower Risk Higher Risk Typically lower rewards Typically higher rewards The risk category shown is not a measure of capital losses or gains, but of how significant the rises and falls in the share class prices have been historically. For example a share class whose price has experienced significant rises and falls will be in a higher risk category, whereas a share class whose price has experienced less significant rises and falls will be in a lower risk category. As the Share Class risk category has been calculated using historical data, it may not be a reliable indication of the Share Class future risk profile. Please note that the Share Class risk category may change in the future and is not guaranteed. The lowest risk category does not mean a risk free investment. A share class in risk category 5 indicates its price has experienced significant rises and falls historically. For more information on our Sub-Funds risk and reward profiles, please refer to the most up to date relevant Sub-Fund and share class specific Key Investor Information Documents (KIIDs), which are available at or by contacting us. 20 Invesco Perpetual Global Investment Series

23 Invesco Perpetual Global Equity Income Fund Distributions to to p p Accumulation shares Paid 30 April Payable 31 October Accumulation shares (No Trail) Paid 30 April Payable 31 October Z Accumulation shares Paid 30 April Payable 31 October Y Accumulation shares Paid 30 April Payable 31 October Income shares Paid 30 April Payable 31 October Income shares (No Trail) Paid 30 April Payable 31 October Z Income shares Paid 30 April Payable 31 October Y Income shares Paid 30 April Payable 31 October Invesco Perpetual Global Investment Series

24 Invesco Perpetual Global Equity Income Fund Price and revenue record by share class Highest Lowest Net share share revenue price price per share Accounting year p p p Accumulation shares Year ended 31 August Year ended 31 August Year ended 31 August Accumulation shares (No Trail) Year ended 31 August Year ended 31 August Year ended 31 August Z Accumulation shares Year ended 31 August Year ended 31 August Year ended 31 August Y Accumulation shares Year ended 31 August Year ended 31 August Year ended 31 August Income shares Year ended 31 August Year ended 31 August Year ended 31 August Income shares (No Trail) Year ended 31 August Year ended 31 August Year ended 31 August Z Income shares Year ended 31 August Year ended 31 August Year ended 31 August Y Income shares Year ended 31 August Year ended 31 August Year ended 31 August Invesco Perpetual Global Investment Series

25 Invesco Perpetual Global Equity Income Fund Net asset value Accumulation shares Accumulation shares (No Trail) Z Accumulation shares Y Accumulation shares Income shares Income shares (No Trail) Z Income shares Y Income shares Net asset value per share p Net asset value per share p Percentage growth Net asset value per share calculated on the last business day of the period at bid market value at close of business. 23 Invesco Perpetual Global Investment Series

26 Invesco Perpetual Global Equity Income Fund Performance to 31 August 2017 Invesco Perpetual Global Equity Income Fund (Z Accumulation shares) 1 MSCI World Index TR* IA Global Equity Income Sector NR Fund Ranking Since Since Since Percentage growth Since Since launch /39 10/38 16/31 6/22 2/13 * Reference benchmark for performance comparison purposes only. Standardised rolling 12 month performance Percentage growth Invesco Perpetual Global Equity Income Fund (Z Accumulation shares) This standardised past performance information is updated on a quarterly basis. Should you require up to date past performance information, this is available on our website or by contacting us. Fund and sector average performance data source: Lipper, in Sterling, with income reinvested and net of the ongoing charge and portfolio transaction costs. The figures do not reflect the entry charge paid by individual investors. MSCI World Index TR data source: Lipper LIM, total return, in Sterling. The value of investments and any income from them will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Past performance is not a guide to future returns. Current tax levels and reliefs may change. Depending on individual circumstances, this may affect investment returns. 1 Effective 18 April 2016, the primary share class changed from Income share class to Z Accumulation share class. Performance figures are based on the Z Accumulation share class. As this was launched on 12 November 2012, for the periods prior to this launch date, performance figures are based on the Accumulation share class, without any adjustment for fees. 24 Invesco Perpetual Global Investment Series

27 Invesco Perpetual Global Equity Income Fund Portfolio classification As at As at Investment Equities Australia Canada 1.91 China France Germany Hong Kong Italy Japan Netherlands Norway South Korea 1.77 Spain 2.84 Sweden Switzerland Taiwan United Kingdom United States Total investments Net other assets/(liabilities) 0.25 (0.17) Net assets Invesco Perpetual Global Investment Series

28 Invesco Perpetual Global Equity Income Fund 10 largest investments As at 31 August 2017: As at 31 August 2016: JPMorgan Chase 3.38 Microsoft 2.99 Novartis 2.88 CaixaBank 2.84 ING 2.80 Chevron 2.69 Orange 2.58 Taiwan Semiconductor Manufacturing 2.55 Intesa Sanpaolo 2.43 Pfizer 2.40 JPMorgan Chase 3.23 Novartis 3.21 Chevron 2.99 Pfizer 2.93 Amgen 2.92 Microsoft 2.92 BT 2.84 Philip Morris International 2.76 British American Tobacco 2.70 Nielson Invesco Perpetual Global Investment Series

29 Invesco Perpetual Global ex UK Core Equity Index Fund Investment objective and policy The Sub-Fund aims to achieve long term capital growth from investment primarily through a portfolio of investments in global companies, excluding the UK. In pursuing this objective, the fund managers may include investments that they consider appropriate which include transferable securities, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions as detailed in Appendix 2 of the most recent Prospectus. Risk profile 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. Over time, inflation may erode the value of investments. The Sub-Fund may use derivatives (complex instruments) in an attempt to reduce the overall risk of its investments, reduce the costs of investing and/or generate additional capital or income, although this may not be achieved. The use of such complex instruments may result in greater fluctuations of the value of the Sub-Fund. The Manager, however, will ensure that the use of derivatives within the Sub-Fund does not materially alter the overall risk profile of the Sub-Fund. The Sub-Fund s performance may be adversely affected by variations in the relative strength of world currencies or if Sterling strengthens against those currencies. Strategy, review and outlook The Sub-Fund rose by 18.4 over the twelve months to the end of August 2017, compared to a rise of 18.4 by the benchmark MSCI World ex UK Index (Net Total Return). This placed the Sub-Fund in the second quartile of its peer group, the IA Global Sector NR, which ended the period on average Fund and sector average performance data source: Lipper, in Sterling, with income reinvested and net of the ongoing charge and portfolio transaction costs. Performance figures are based on the Accumulation (No Trail) share class. The figures do not reflect the entry charge paid by individual investors. MSCI World ex UK Index (Net Total Return) data source: Lipper LIM, total return, in Sterling. Past performance is not a guide to future returns. Our performance is generated through a quantitative bottom-up investment process driven by stock selection and based on four concepts: Earnings Expectations, Market Sentiment, Management & Quality and Value. Relative risk is controlled with the help of an optimiser, an analysis tool that recommends trades to maximise portfolio exposure to the selected stocks within pre-determined risk/return parameters. In terms of portfolio construction, we tightly constrain the risk taken in sectors, countries and currencies. 27 Invesco Perpetual Global Investment Series

30 Invesco Perpetual Global ex UK Core Equity Index Fund Global equity markets ended higher during the reporting period, supported by solid corporate earnings growth and a rebound in global economic activity. US equity markets continued their positive trend that had started after the election and further benefitted from a number of encouraging economic data prints in December. Trump s pro-growth, deregulatory and reflationary policy stance renewed investors risk-on sentiment and fuelled the rotation into more cyclical areas of the market. In terms of relative performance, the Sub-Fund has underperformed its benchmark over the last twelve months. Looking at the performance attribution of the Sub-Fund, the impact from stock selection was mixed. While our exposure to Value, i.e. an overweight in attractively valued companies, added to performance, contribution from remaining factors was flat. Our diversified and disciplined approach to stock selection favours companies that, in our view, are attractively valued, have good earnings and price momentum and have management that acts in the interest of shareholders. We believe that we can add value through the systematic application of fundamental and behavioural insights. Disciplined portfolio construction and cost effective trading are integral to our investment process, which we believe should help us preserve value added from stock selection and reduce the probability of significant underperformance. Michael Fraikin and Alexander Uhlmann, Fund Managers Where Michael Fraikin and Alexander Uhlmann have expressed opinions, they are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco Perpetual investment professionals. Stock specific effects weighed on performance with our underweights in Microsoft and Facebook detracting the most in terms of relative performance. Furthermore, underweighting US and Japanese stocks hurt performance. Over the last few months we have made a number of adjustments within the Sub-Fund. We bought Everest Re and Electrolux with trade weights of 1.4 and 1.0, respectively. Additionally, we increased our position in Cadence Design Systems, a US IT company, by 0.9. At the time of purchase, the results for these stocks from our stock selection model showed attractive Value and Earnings Expectation scores. On the other hand, we sold out of Dollarama and Western Union which had portfolio weightings of 1.6 and 1.2, respectively. Furthermore, we decreased our holdings in Atlas Copco by 0.6. Those stocks were sold due to unattractive Value scores and risk considerations. 28 Invesco Perpetual Global Investment Series

31 Invesco Perpetual Global ex UK Core Equity Index Fund Fund facts Launch date 31 October 2006 Fund size at million Accounting date 31 August Ex-dividend date 1 September Distribution payable 31 October Fund Management Fee - No Trail class 0.70 per annum Entry charge 5 Operating charges figure for the year ended No Trail class 0.70 Operating charges figure for the year ended No Trail class 0.70 The operating charges figure is equivalent to the FMF, which we also refer to as the ongoing charge in our Key Investor Information Documents (KIIDs) and our literature. 29 Invesco Perpetual Global Investment Series

32 Invesco Perpetual Global ex UK Core Equity Index Fund Risk and Reward Profiles for the year 1 September 2016 to 31 August 2017 Lower Risk Higher Risk Typically lower rewards Typically higher rewards The risk category shown is not a measure of capital losses or gains, but of how significant the rises and falls in the share class prices have been historically. For example a share class whose price has experienced significant rises and falls will be in a higher risk category, whereas a share class whose price has experienced less significant rises and falls will be in a lower risk category. As the Share Class risk category has been calculated using historical data, it may not be a reliable indication of the Share Class future risk profile. Please note that the Share Class risk category may change in the future and is not guaranteed. The lowest risk category does not mean a risk free investment. A share class in risk category 5 indicates its price has experienced significant rises and falls historically. For more information on our Sub-Funds risk and reward profiles, please refer to the most up to date relevant Sub-Fund and share class specific Key Investor Information Documents (KIIDs), which are available at or by contacting us. 30 Invesco Perpetual Global Investment Series