Invesco Emerging Markets Bond Fund A-SD shares

Transcription

1 Invesco Emerging Markets Bond Fund A-SD shares January 2016 This marketing document is exclusively for use by Professional Clients and Financial Advisers in Continental Europe and Qualified Investors in Switzerland. This document is not for consumer use, please do not redistribute.

2 Contents Invesco Emerging Markets Bond Fund Investment philosophy and process Portfolio performance and positioning 2

3 Invesco Emerging Markets Bond Fund

4 Invesco Emerging Markets Bond Fund Key fund features Higher income from an investment grade asset class Risk adjusted returns and portfolio diversification Experienced and resourced investment team During this period of low interest rates in domestic markets around the world, emerging markets offer the opportunity to earn a higher level of income from an investment grade or near investment grade rated asset class. In general, yields on emerging market bonds are higher than equivalently rated bonds issued by the developed markets Over the past decade emerging market bonds have delivered attractive risk adjusted and absolute returns relative to other fixed income asset classes, including government bonds and high yield debt. An allocation to emerging market debt can also help diversify your portfolio as emerging markets have a low to moderate correlation with many fixed income and equity asset classes Choosing a manager with the experience and resources necessary to navigate market cycles is essential. Our team of seasoned Emerging Markets specialists understands and seeks to exploit the multiple nuances particular to Emerging Markets investing. The team leverages a highly integrated global platform of more than 160 investment professionals in 11 locations 4

5 Joseph Portera, Rashique Rahman & Jorge Ordonez Fund managers Joseph Portera Rashique Rahman Jorge Ordonez In developed economies, ageing populations and persistently low interest rates are fuelling investors search for alternative sources of return. As a result, we believe emerging market bonds will generate solid returns over the medium term. Joseph Portera, Head of Global High Income 5

6 Invesco Emerging Markets Bond Fund Fund facts Fund name Fund objectives Invesco Emerging Markets Bond Fund The Fund intends to achieve a high level of income together with long term capital growth. The Fund intends to achieve its objective by investing primarily in debt securities of issuers in emerging market countries, which may be listed or traded elsewhere 1 Launch date 10 March 2000 Original launch date 15 January Domicile Legal structure Base currency Unit type Reference index Ireland Mutual Fund Irish Unit Trust authorised as UCITS USD Accumulation and distribution JP Morgan EMBI Global Diversified Share class Unit type Share class ccy Annual management fee Minimum investment ISIN codes A SD USD 1.0% USD 1,500 IE There may be additional share classes 3 registered for sale in individual jurisdictions. 1 For the full objectives and investment policy please consult the current prospectus. 2 The original fund launch date shown herein is different from the fund launch date shown in the KIID, as it indicates the launch date of a previous fund that was merged into the fund shown and therefore the track record starts with this previous fund. 3 For information on fund and fund s shares registrations, please refer to the appropriate internet site or your local Invesco office. Not all share classes are the same nor do they necessarily suit every investor. There may be differences in fee structures, in minimum investment amounts, etc. Please check the fund prospectus and the relevant KIIDs for additional information. 6

7 Investment philosophy and process

8 Invesco Fixed Income overview Global perspective, breadth of resources, and significant scale Global Investment Team footprint Scale of platform: US$ billion AUM Chicago Louisville San Diego London New York London Atlanta Palm Harbor Shenzhen Tokyo Mumbai Hong Kong Depth of resources: 223 professionals including 160 investment professionals Global footprint: 11 locations Source: Invesco, as of 30 September Subject to change without notice. Invesco Fixed Income does not include all the fixed income entities within Invesco Ltd., and is not limited to those fixed income assets within the GIPS -compliant firm Invesco Worldwide; therefore, the assets under management reported here for Invesco Fixed Income may not match the fixed income assets reported in the Invesco earnings statement. 8

9 Invesco Fixed Income overview Systematic and flexible process aligned to market opportunity Fixed income assets have pricing inefficiencies that we believe can be captured successfully by skilled managers Balancing our top-down and bottom-up decision-making process increases our ability to access these opportunities Top-down Bottom-up Strategic and tactical allocation Security and sub-sector selection Beta Alpha Economic Cycle For illustrative purposes only For illustrative purposes only. 9

10 Invesco Fixed Income overview Single and Multi-Sector solutions to meet client objectives Single sector disciplines + Risk Investment grade Mortgages High yield Bank loans Credit arbitrage Convertibles Emerging markets Municipals Multi-sector disciplines Core suite Absolute return Strategic real return Alpha Unconstrained bond Strategic income Global bond suite We will continue to develop products to meet market demands in both single sector and multisector disciplines Cash Stable value Multi-sector credit Return + Beta For illustrative purposes only and does not ensure future results of any product or strategy, nor does it constitute a recommendation of the suitability of any investment strategy for a particular investor. 10

11 Invesco Emerging Market Debt Our investment process aligns with our market philosophy We believe Stages of economic cycles heavily influence Emerging Market Debt Therefore Our investment process is centered around understanding where we are in the cycle, integrating the inputs from our emerging market and global macro teams with that of our bottom-up fundamental analysts Rapid growth, less robust information and fewer dedicated analytical resources creates pricing inefficiencies within emerging market debt Our process is designed to exploit this inefficiency to generate alpha across the emerging market debt universe external, local and corporate The breadth, volatility and liquidity constraints of emerging markets are less suited to mirroring indices We believe We look for value and construct portfolios independently, using top-down and bottom-up inputs without being tethered to index composition For illustrative purposes only. 11

12 Investment process Combining top-down and bottom-up perspectives Top-down (Global macro drivers) Investment Strategy Team (IST) Emerging Market Strategy Team (EMST) Risk management Portfolio construction and Portfolio management Continuous two-way communication flow EM sovereign credit analysis EM corporate credit analysis Bottom-up (Fundamental analysis) For illustrative purposes only. 12

13 Top-down process Emerging Market Strategy Team (EMST) provides EM macro inputs to platform EMST Structural economic analysis Cyclical analysis Fundamentals Technicals Valuation IST* Top-down outputs Investment themes Aggregate risk factors EM forecasts Asset allocation Provides views to platform For illustrative purposes only. * Investment Strategy Team. 13

14 Bottom-up process Fundamental corporate and sovereign analysis establishes allocation ratings Provides views to platform Underweight/ overweight Conviction Price target Time horizon Bottom-up outputs Valuation Security level analysis and rating Issuer level analysis and rating Initial screening process For illustrative purposes only. Sovereign and corporate research 14

15 Portfolio construction Portfolio manager aggregates multiple inputs to strive to construct portfolios with attractive risk/return profiles Top-down inputs Bottom-up inputs Additional inputs Portfolio manager Investment guidelines Exposures Scenario analysis/ Stress testing Risk factors Optimized Portfolio Ex-post risk management Portfolio attribution For illustrative purposes only. 15

16 Emerging market sovereign research process Maximizing analytical capabilities through integration of EM expertise, credit analysis and our global platform Initial screening process Macro top-down inputs Geo-political analysis Sector strategy Quantitative criteria Top down inputs drive more informed approach to bottom up recommendations Country level analysis Key economic indicators Qualitative factors Constant discussion EMST / PMs Market level considerations Sovereign credit Local market (Local rates, FX) Research analysts Valuation & allocation rating Relative value analysis across assets Derive country allocation ratings A E Research outputs determined in a consistent, comparable, transparent, & repeatable process across global analyst platform For illustrative purposes only. 16

17 Emerging market corporate research process Maximizing analytical capabilities through integration of EM expertise, credit analysis and our global platform Initial screening process Macro views Sovereign analysis Liquidity & technicals Region & sector screens Top down inputs drive more informed approach to bottom up recommendations Issuer level analysis & rating Cash flow & financial statement analysis Qualitative analysis Develop independent issuer fundamental rating & credit trend Constant discussion EMST / PMs Security level analysis & rating Bond specific analysis Arrive at security risk rating Research analysts Valuation & allocation rating Derive security allocation rating A E Research outputs determined in a consistent, comparable, transparent, & repeatable process across global analyst platform For illustrative purposes only. 17

18 Portfolio performance and positioning

19 Invesco Emerging Markets Bond Fund Indexed performance Indexed performance /10 12/11 12/12 12/13 12/14 12/15 Fund Index² A SD shares. Past performance is not a guide to future returns. 1 (Source: 2015 Morningstar) Mid to mid, gross income re-invested to 31 December 2015 unless otherwise stated. The figures do not reflect the entry charge payable by individual investors. 2 JP Morgan EMBI Global Diversified. 19

20 Invesco Emerging Markets Bond Fund Cumulative and calendar year performance Cumulative performance 1 in % YTD 1 month 1 year 3 years 5 years Fund Index Quartile ranking Absolute ranking 11/ /165 11/149 13/115 14/75 Mstar GIF OS Sector: Global Emerging Markets Bond Calendar year performance 1 in % Fund Index A SD shares. Past performance is not a guide to future returns. 1 (Source: 2015 Morningstar) Mid to mid, gross income re-invested to 31 December 2015 unless otherwise stated. The figures do not reflect the entry charge payable by individual investors. 2 JP Morgan EMBI Global Diversified. 20

21 Invesco Emerging Markets Bond Fund Geographical weightings Geographical weightings 1 Geographical weightings of the fund in % 1 in % Fund Index Mexico Russia China Kazakhstan Argentina Brazil Turkey Croatia Others Mexico Russia China Kazakhstan Argentina Brazil Turkey Croatia Others Cash Cash A SD shares. 1 Source: Invesco as at 31 December Portfolio weightings are subject to change without notice. 21

22 Invesco Emerging Markets Bond Fund Sector weightings Sector weightings 1 Sector weightings of the fund in % 1 in % Fund Index Quasi and Foreign Government Corporate Cash Quasi and Foreign Government Corporate Cash A SD shares. 1 Source: Invesco as at 31 December Portfolio weightings are subject to change without notice. 22

23 Invesco Emerging Markets Bond Fund Credit ratings Credit ratings 1 average rating: BB in % Fund Index AA A BBB BB B CCC and below Not rated Cash and FX A SD shares. 1 Source: Invesco as at 31 December Portfolio weightings can change any time and without warning. 23

24 Invesco Emerging Markets Bond Fund Maturity distribution 1 in % Fund Index 0 3 years years years years years Duration distribution 1 average duration: 5.6 in % Fund Index Under 3 years years years years years A SD shares. 1 Source: Invesco as at 31 December Portfolio weightings can change any time and without warning. 24

25 Invesco Emerging Markets Bond Fund Yield % 1 Gross current yield 6.05 Gross redemption yield year characteristics 2 Alpha Beta 1.09 Correlation 0.96 Information ratio Sharpe ratio 0.00 Tracking error in % 2.20 Volatility in % 7.53 For detailed information about the 3 year characteristics please see A SD shares. 1 Source: Invesco as at 31 December Source: Morningstar as at 31 December Portfolio weightings can change any time and without warning. 25

26 Important information This marketing document is exclusively for use by Professional Clients and Financial Advisers in Continental Europe and Qualified Investors in Switzerland. Data as at , unless otherwise stated. This document is not for consumer use, please do not redistribute. It is not subject to German regulatory requirements that ensure impartiality of financial analysis. Therefore, the prohibition of trading before the release of financial analysis does not apply. Past performance is not a guide to future returns. Where Invesco has expressed views and opinions, these may change and are not to be construed as investment advice. The value of investments and any income will fluctuate (this may partly be the result of exchange-rate fluctuations) and investors may not get back the full amount invested. As a large portion of the fund is invested in less developed countries, you should be prepared to accept significantly large fluctuations of the value of the fund. The fund may hold a significant amount of debt instruments which are of lower credit quality and may result in large fluctuations of the value of the fund. 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 more information on our funds, please refer to the most up to date relevant fund and share class-specific Key Investor Information Documents, the latest Annual or Interim Reports and the latest Prospectus, and constituent documents. This information is available using the contact details of the issuer and is without charge. Further information on our products is available using the contact details shown. Whilst great care has been taken to ensure that the information contained herein is accurate, no responsibility can be accepted for any errors, mistakes or omissions or for any action taken in reliance thereon. This marketing document is not an invitation to subscribe for shares in the fund and is by way of information only, it should not be considered financial advice. The performance data shown does not take account of the commissions and costs incurred on the issue and redemption of units. Any reference to a ranking, a rating or an award provides no guarantee for future performance results and is not constant over time. Persons interested in acquiring the fund should inform themselves as to (i) the legal requirements in the countries of their nationality, residence, ordinary residence or domicile; (ii) any foreign exchange controls and (iii) any relevant tax consequences. As with all investments, there are associated risks. This document is by way of information only. Asset management services are provided by Invesco in accordance with appropriate local legislation and regulations. The fund is available only in jurisdictions where its promotion and sale is permitted. Not all share classes of this fund may be available for public sale in all jurisdictions and not all share classes are the same nor do they necessarily suit every investor. Fee structure and minimum investment levels may vary dependent on share class chosen. Please check the most recent version of the fund prospectus in relation to the criteria for the individual share classes and contact your local Invesco office for full details of the fund registration status in your jurisdiction. Please be advised that the information provided in this document is referring to Class A (semi-annual distribution - USD) exclusively. This fund is domiciled in Ireland. Denmark, Italy and Portugal: The fund is not registered for public distribution in these jurisdictions. This document is provided only at the request of a Professional Client or Qualified Investor and is intended for the sole use of this person. Germany, Austria and Switzerland: This document is issued in Germany by Invesco Asset Management Deutschland GmbH. This document is issued in Austria by Invesco Asset Management Österreich GmbH and in Switzerland by Invesco Asset Management (Schweiz) AG. Subscriptions of shares are only accepted on the basis of the most up to date legal offering documents. The legal offering documents (fund & share class specific Key Investor Information Document, prospectus, annual & semi-annual reports, articles and trustee deed) are available free of charge at our website and in hardcopy and local language from the issuers: Invesco Asset Management Deutschland GmbH, An der Welle 5, D Frankfurt am Main, Invesco Asset Management Österreich GmbH, Rotenturmstrasse 16-18, A-1010 Wien, and Invesco Asset Management (Schweiz) AG, Talacker 34, CH-8001 Zurich, who acts as a representative for the funds distributed in Switzerland. Paying agent for the fund distributed in Switzerland: BNP PARIBAS SECURITIES SERVICES, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002 Zürich. CE2157/2015