Invesco Funds Series 3 Interim Report (Unaudited) For the six months ended 31 May 2017

Transcription

1 Invesco s Series 3 Interim Report (Unaudited) For the six months ended 31 May 2017

2 Health Care 01 Investment Policy and Description of the Series 02 Investment Adviser s Report on behalf of the Manager 03 Performance 03 Price and Income Record Portfolio Statement 06 Changes in the Composition of the Portfolio Technology 01 Investment Policy and Description of the Series 07 Investment Adviser s Report on behalf of the Manager 08 Performance 08 Price and Income Record Portfolio Statement 11 Changes in the Composition of the Portfolio 12 Statement of Financial Position 31 May Statement of Financial Position 30 November Income Statement 31 May Income Statement 31 May Statement of Changes in Net Assets attributable to Holders of Redeemable Participating 31 May Statement of Changes in Net Assets attributable to Holders of Redeemable Participating 31 May Notes to the Financial Statements 25 Statement of the Manager s and Depositary s Responsibilities 26 Additional Information 27 General Information Invesco s Series 3

3 Investment Policy and Description of the Series Investment Objectives and Policies Health Care (the ) aims to achieve long- term capital growth by investing in healthcare companies throughout the world. The Manager ( Asset Management DAC ) will invest principally in four different sectors of the healthcare market, these being pharmaceuticals, biotechnology, healthcare services and medical technology and supplies. The Manager will seek to achieve the investment objective by investing primarily in equity or equity related securities. At least 70% of the s total assets (without taking into account ancillary liquid assets) will be invested in healthcare companies throughout the world. Technology (the ) aims to achieve long-term capital growth by investing in technology companies throughout the world. For the purposes of the, a technology company is one which operates in fields such as information processing (including computer systems, software development, communication systems and instrumentation development), telecommunications, information services, internet related technology and services, medical and healthcare technology and general electronics. The Manager will seek to achieve the investment objective by investing primarily in equity or equity related securities. At least 70% of the s Net Asset Value (NAV) (without taking into account ancillary liquid assets) will be invested in technology companies throughout the world. While the technological capability and quality of product is an important factor in investment selection, the decisive factor in selecting investments will be the confidence that the Manager has in the ability of the relevant company s management to achieve its goals and objectives. The may invest in any recognised Market. Description of the Series The Invesco s Series 3 (the Series ) is a multi-portfolio Irish unit trust comprising Health Care and Technology (the s ). The Series is authorised by the Central Bank of Ireland (the Central Bank ) as an undertaking for collective investment in transferable securities pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (as amended) (the UCITS Regulations ) and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (the Central Bank UCITS Regulations ). The Series is also authorised by the Hong Kong Securities and Futures Commission (SFC) under the Hong Kong Securities and Futures Ordinance (Cap. 571) and has been recognised by the Financial Conduct Authority under Section 264 of the Financial Services and Markets Act 2000 (the Act ). The s also endeavour to comply with regulatory standards of the other jurisdictions where the s are authorised for distribution. The s issue units to unitholders. As per the consolidated prospectus, these units are referred to as and the unitholder is referred to as the Shareholder throughout these Financial Statements. Both s are funds in the Invesco range of s managed by Asset Management DAC, ( the Manager ). Asset Management DAC is an indirect wholly-owned subsidiary of Invesco Ltd. Both s are approved by the Central Bank of Ireland. Both s are also approved by the SFC. In giving authorisation for the s the SFC does not take responsibility for the financial soundness of a fund nor for the correctness of any statements made or opinions expressed in this regard. The s are not registered under the United States Investment Company Act of 1940 (as amended) and in the s ( ) have not been registered under the United States Securities Act of 1933 (as amended). Accordingly, may not be offered, sold or delivered in the United States or to US Persons as defined in the current Prospectus of the Series (the Prospectus ). Share prices are available through the Invesco internet site (for Shareholders in Hong Kong please refer to and, if required by local law or regulation, published in local leading financial newspapers including, in the case of Hong Kong, the Hong Kong Economic Times, the South China Morning Post and the Hong Kong Economic Journal. Share prices are currently also available from Reuters and Bloomberg. Any investment in the s should be considered long-term. There can be no guarantee that the amounts subscribed for will be ultimately realised. Changes in rates of exchange between currencies may cause the value of an investment in the s to diminish or increase. This report to Shareholders does not constitute an offer or invitation to purchase in either of the s. An updated Consolidated Prospectus for Invesco s Series 1, 2, 3, 4, 5, 6 and the Invesco Series was issued on 15 February This contains all current and relevant information (as at the date of issue) regarding the Series and other s within the Invesco s Series 1, 2, 3, 4, 5, 6 and the Invesco Series. This report to Shareholders has been prepared on the basis of the Prospectus. If you wish to receive a copy of this Prospectus please contact any Invesco office. Charges Share Launch Date Annual Management Fee Annual Distributor Fee % % Annual Administration Fee Actual % Annual Depositary Fee Actual % Health Care A-AD AA 01/03/ B-AD AA 07/04/ C-AD AA 03/03/ Z-AD * AA 21/08/ Technology A-AD AA 03/01/ B-AD AA 07/04/ C-AD AA 13/01/ Z-AD * AA 21/08/ * Effective 10 May 2017 the actual administration fee was reduced by 10 basis points. Refer to note 11 for further details. Distribution Frequency AA = Annual The Manager s annual fee is based on the daily net asset value ( NAV ) of both s and is paid monthly. The Manager will also be paid a fee in respect of the duties as Administrator ( Asset Management DAC ) and Registrar ( Asset Management DAC ) for each. The Administration fee will be calculated daily and will be paid monthly on the last business day of each month at the rates set out above based on the net asset value of each Share Class of each on each business day. The charges are deductible from the income of each or from capital in the event of an income shortfall. The Manager may pay a portion of its administration fees to the Sub-Administrator (BNY Mellon Services (Ireland) Designated Activity Company) in consideration for the Sub-Administrator providing certain administrative functions to the s. BNY Mellon Trust Company (Ireland) Limited ( the Depositary ) will be paid a fee calculated on a sliding scale to a maximum rate of % per annum of the net asset value of each class of each Share of the on the last business day of the month and paid monthly. The assets of a are exclusively available to satisfy the rights of Shareholders in relation to that and the rights of creditors whose claims have arisen in connection with the creation, operation or liquidation of that. 01 Invesco s Series 3

4 Health Care Investment Adviser s Report on behalf of the Manager During the six months to end 31 May 2017, the s A returned 5.63% (US Dollar, total return), underperforming its benchmark, the MSCI World Health Care Index, which returned 14.83%. The also lagged its peer group sector, which had an average return of 11.83%, putting the in the fourth quartile for the period. The period began amid a surge in US stocks, following the surprise US presidential election results. The rally continued into 2017 amid optimism about the new administration s plans for tax reform, and regulatory easing, which investors believed would encourage economic growth. However, a shift in market trends occurred as the US Dollar weakened, volatility was largely absent, and emerging market equities posted strong gains. This represented a reversal from the immediate post-election period, and broadly reflected an increasingly risk-on mindset. Investors continued to react to US politics, but stronger economic data during the period also supported optimism. Consumer confidence and better Euro zone employment fueled positive sentiment, while investors generally shrugged off a rate increase by the US Federal Reserve in March. For the period, the information technology sector posted strong gains, whereas energy stocks declined amid an increase in oil inventories and declines in oil prices. Health care stocks (as measure by the MSCI World Health Care Index) participated in the rally. For the, stock selection and an overweight in the biotechnology industry was the largest detractor from performance relative to the benchmark. The strategy s relative performance was also hurt by stock selection and an underweight in health care equipment. Investors continued to avoid biotechnology given the uncertain pricing environment and rotated into perceived safe health care safe havens such as medical devices. Part of this underperformance was offset by an overweight in managed care and a lack of exposure to health care services relative to the benchmark. The largest individual contributor to the s return was Vertex Pharmaceuticals, a company focused on developing and commercializing therapies for the treatment of cystic fibrosis. The company s shares increased sharply in March due to positive results from a late-stage clinical trial for the company s combination drug therapy for cystic-fibrosis. The largest detractor during the period was Alexion Pharmaceuticals, a biopharmaceutical company. fell in May following an investigation into potentially improper sales practices in Brazil as the market overreacted to an investigation that comprises around 5% of sales. In addition, the newly arrived CEO began replacing the management team with his own hires. We believe the new CEO will be a positive change and the company fundamentals remain sound, and we increased our position in the company as we believe it has been unduly punished by the market. Management seems to agree, as in June the CEO bought over $1M in stock and also hired CFO Paul Clancy, a respected industry veteran who was previously CFO at large-cap biotechnology company Biogen. The s largest relative and absolute exposure was in the biotechnology industry where we believe valuations are attractive, growth is robust, pipelines are strong, and there is pipeline and takeout optionality not priced into the stocks. Clarity from the Trump Administration on drug prices should lift a major sector overhang and enable biotechnology stocks to trade more on their intrinsic value. We believe this development will also trigger a rotation out of devices and parts of health care services where the is positioned with an underweight position. Dated: 29 June 2017 Asset Management DAC 02 Invesco s Series 3

5 Health Care Performance (All expressed in the share class base currency, mid to mid, gross income reinvested) Ccy Last 6 months Percentage change over: Last Last 5 years 12 months (Cumulative) Health Care A-AD Health Care B-AD Health Care C-AD Health Care Z-AD n/a MSCI World HealthCare Index (benchmark) Morningstar GIF OS Sector Equity Health Care* Source: Morningstar. * For comparative purposes. The NAV Information for 31 May 2017, 30 November 2016 and 30 November 2015 can be found on page 14. Price and Income Record The table below shows the highest and lowest NAV prices of in the s in the last 10 years. There has never been an annual income distribution of the since its launch. The was redomiciled to Ireland on 15 September 1995 at a price of $18.96 per Share, excluding all managers initial charges. Calendar Year Highest A-AD Lowest A-AD Highest B-AD Lowest B-AD Highest C-AD Lowest C-AD Highest Z-AD Lowest Z-AD n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Figures to 30 June Source: Asset Management DAC. Distributions, if any, are paid annually to A-AD, B-AD, C-AD and Z-AD Shareholders on or after 11 December and are set out in Note 9. Reports on the progress of the are published on or before 31 March and 31 July each year and shall be made available to Shareholders free of charge on request. The price of and the income from them can go down as well as up. Please note that past performance is not necessarily a guide to future performance. 03 Invesco s Series 3

6 Health Care Portfolio Statement As at 31 May 2017 The Portfolio of Investments (analysed by industrial sector) Fair Value of (Ordinary shares quoted unless otherwise stated) Value Investment Holding $ % PHARMACEUTICALS (39.81%) (30 November 2016: 46.26%) ACADIA Pharmaceuticals Inc 63,542 1,630, Aclaris Therapeutics Inc 133,086 3,112, Aerie Pharmaceuticals Inc 51,372 2,849, Agile Therapeutics Inc 272, , Allergan Plc 29,728 6,607, Array BioPharma Inc 421,582 3,315, AstraZeneca Plc 166,345 5,656, Bayer AG 61,621 8,086, Bristol-Myers Squibb Co 205,507 11,084, Cardinal Health Inc 47,288 3,478, Clovis Oncology Inc 71,446 3,733, DBV Technologies SA 116,463 3,865, Eli Lilly & Co 169,831 13,303, Endo International Plc 271,397 3,515, Heron Therapeutics Inc 127,514 1,692, Hikma Pharmaceuticals Plc 115,043 2,484, Jazz Pharmaceuticals Plc 41,584 6,160, Lipocine Inc 31, , McKesson Corp 24,588 3,986, Merck & Co Inc 297,956 19,329, Neurocrine Biosciences Inc 59,700 2,597, Nippon Shinyaku Co Ltd 86,300 5,032, Novartis AG 133,579 10,760, Roche Holding AG 52,014 14,328, Sanofi 221,752 10,879, Sarepta Therapeutics Inc 78,709 2,292, Shire Plc 134,287 23,218, Supernus Pharmaceuticals Inc 79,511 2,816, TESARO Inc 15,957 2,288, Teva Pharmaceutical Industries Ltd 110,296 3,065, Zogenix Inc 172,485 2,151, ,352, BIOTECHNOLOGY (28.26%) (30 November 2016: 27.91%) Alder Biopharmaceuticals Inc 83,603 1,346, Alexion Pharmaceuticals Inc 131,802 12,885, Amgen Inc 63,480 9,765, BioCryst Pharmaceuticals Inc 210,076 1,158, Biogen Inc 53,933 13,293, BioMarin Pharmaceutical Inc 183,099 16,094, Bluebird Bio Inc 47,481 3,707, Celgene Corp 213,869 24,620, Dermira Inc 116,133 3,190, Exact Sciences Corp 155,433 5,075, Illumina Inc 28,732 4,987, Incyte Corp 92,984 12,131, Paratek Pharmaceuticals Inc 76,680 1,547, Prothena Corp Plc 54,167 2,724, REGENXBIO Inc 62,065 1,038, Spark Therapeutics Inc 29,021 1,488, Ultragenyx Pharmaceutical Inc 34,078 1,806, Vertex Pharmaceuticals Inc 116,398 14,015, ,877, HEALTHCARE-SERVICES (14.25%) (30 November 2016: 11.18%) Aetna Inc 89,911 13,088, Anthem Inc 36,668 6,722, Brookdale Senior Living Inc 155,553 2,139, Invesco s Series 3

7 Health Care Portfolio Statement (continued) As at 31 May 2017 The Portfolio of Investments (analysed by industrial sector) Fair Value of (Ordinary shares quoted unless otherwise stated) Value Investment Holding $ % HEALTHCARE-SERVICES (14.25%) (30 November 2016: 11.18%) (continued) Centene Corp 67,403 4,949, Envision Healthcare Corp 51,880 2,845, HCA Healthcare Inc 55,202 4,526, Humana Inc 41,079 9,465, Molina Healthcare Inc 49,109 3,255, Tenet Healthcare Corp 183,405 3,199, UnitedHealth Group Inc 69,734 12,310, Universal Health Services Inc 30,109 3,466, ,969, HEALTHCARE-PRODUCTS (12.65%) (30 November 2016: 7.85%) DENTSPLY SIRONA Inc 120,995 7,575, Edwards Lifesciences Corp 50,335 5,767, Olympus Corp 210,900 7,700, ResMed Inc 64,382 4,506, Thermo Fisher Scientific Inc 122,208 21,173, Wright Medical Group NV 268,344 7,196, Zimmer Biomet Holdings Inc 39,177 4,639, ,560, ELECTRONICS (1.15%) (30 November 2016: 0.85%) Agilent Technologies Inc 88,440 5,339, COMMERCIAL SERVICES (0.91%) (30 November 2016: 0.60%) HealthEquity Inc 54,516 2,466, Qualicorp SA 203,000 1,764, ,231, RETAIL (0.53%) (30 November 2016: 2.44%) Raia Drogasil SA 109,900 2,434, Total Value of Investments (Cost $397,741,483) 451,764, Total Financial Assets 451,764, Cash and Cash Equivalents (see Note 5 for details) 9,134, Bank Overdraft (see Note 5 and Note 6 for details) (2,688) (0.00) Other Net Current Assets 2,145, Total Value of the at 31 May ,041, % of Analysis of total assets Total Assets Transferable securities admitted to an official stock exchange listing or dealt in on another regulated market Other assets Invesco s Series 3

8 Health Care Changes in the Composition of the Portfolio For the six months ended 31 May 2017 Purchases Cost $ Sales Proceeds $ Alexion Pharmaceuticals Inc 10,905,440 Eli Lilly & Co 14,141,249 Eli Lilly & Co 9,688,547 AbbVie Inc 12,097,767 DENTSPLY SIRONA Inc 7,529,954 Walgreens Boots Alliance Inc 9,446,932 Anthem Inc 5,915,427 McKesson Corp 6,892,523 Illumina Inc 5,198,294 Roche Holding AG 6,786,525 Clovis Oncology Inc 5,039,580 Sanofi 6,450,109 BioMarin Pharmaceutical Inc 5,023,306 Teva Pharmaceutical Industries Ltd 6,103,523 Centene Corp 4,885,979 Gilead Sciences Inc 6,050,084 Zimmer Biomet Holdings Inc 4,729,644 Johnson & Johnson 5,185,089 Shire Plc 4,701,740 Pfizer Inc 5,072,627 Edwards Lifesciences Corp 4,700,952 Celgene Corp 4,025,474 Aerie Pharmaceuticals Inc 2,663,467 Allergan Plc 3,960,693 Molina Healthcare Inc 2,630,185 Amgen Inc 3,909,332 Teva Pharmaceutical Industries Ltd 2,490,114 HCA Healthcare Inc 3,676,434 Paratek Pharmaceuticals Inc 1,856,402 Biogen Inc 3,516,354 Bayer AG 1,591,809 Wright Medical Group NV 2,948,951 HealthEquity Inc 699,890 United Therapeutics Corp 2,747,328 Exact Sciences Corp 587,086 Bayer AG 2,640,386 Endo International Plc 382,654 Shire Plc 2,280,813 Total cost of purchases since 01 December ,220,470 Incyte Corp 2,277,262 UnitedHealth Group Inc 2,246,437 Merck & Co Inc 2,149,297 Bristol-Myers Squibb Co 2,097,944 Medicines Co 2,092,142 Jazz Pharmaceuticals Plc 2,045,724 Novartis AG 1,933,154 Spark Therapeutics Inc 1,540,347 Bioverativ Inc 1,435,155 Other Sales 14,963,667 Total proceeds of sales since 01 December ,713, Invesco s Series 3

9 Technology Investment Adviser s Report on behalf of the Manager For the six month period ending May 31, 2017, global equity markets posted strong positive returns. With volatility largely absent, emerging market equities outperformed their developed market counterparts. Markets began 2017 with a broad rally that marked the best first quarter for equities since Improved consumer confidence and Eurozone employment data fueled positive market sentiment, while investors generally shrugged off the US Federal Reserve interest rate hikes in December 2016 and March For the reporting period as a whole, the information technology (IT) and financials sectors led performance. In contrast, the energy sector and more defensive sectors such as consumer staples and utilities underperformed. During the six month period ending 31 May 2017, the s A returned 20.56% (ollar, total return) outperforming its benchmark, the NASDAQ Composite Total Return Index, which returned 17.09% over the same period. The s peer group, the GIF OS Equity Technology sector, returned 21.78%. Relative outperformance was driven by security selection and overweight exposure in the software industry. Additional contributors to relative performance came from stock selection and underweight exposure in the banks industry, as well as an overweight exposure and security selection in the internet software & services space. In contrast, stock selection and overweight exposure in the biotechnology sector was the key detractor from both absolute and relative performance. Security selection in the wireless telecommunications services industry detracted from relative performance as well. During the period under review, the s largest overweight exposures relative to the NASDAQ Composite Index were in the software, household durables and IT services industries. By contrast, the s largest underweight exposures were in the hotels, restaurants, & leisure, communications equipment and food products industries. We attempt to harness multi-year secular trends, which should benefit longterm investors regardless of near-term economic strength. Current areas of emphasis are those expected to take market share from mature technology, including the game-changing technologies of mobile, security, cloud and biopharmaceuticals. We remain optimistic about prospects for IT spending given strong enterprise balance sheets and their need to invest in new technologies. We also believe the increased pace of health care innovation will continue to drive attractive long-term growth rates. Dated: 29 June 2017 Asset Management DAC 07 Invesco s Series 3

10 Technology Performance (All expressed in share class base currency, mid to mid, gross income reinvested) Ccy Last 6 months Percentage change over: Last Last 5 years 12 months (Cumulative) Technology A-AD Technology B-AD Technology C-AD Technology Z-AD n/a NASDAQ Composite Index (benchmark) Morningstar GIF OS Sector Equity Technoloay* Source: Morningstar. *For comparative purposes. The NAV Information for 31 May 2017, 30 November 2016 and 30 November 2015 can be found on page 14. Price and Income Record The table below shows the highest and lowest NAV prices of in the s in the last 10 years. There has never been an annual income distribution on the since its launch. The was redomiciled to Ireland on 15 March 1993 at a price of $52.69 per Share, excluding all managers initial charges. Calendar Year Highest A-AD Lowest A-AD Highest B-AD Lowest B-AD Highest C-AD Lowest C-AD Highest Z-AD Lowest Z-AD n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Figures to 30 June Source: Asset Management DAC. Distributions, if any are paid annually to A-AD, B-AD, C-AD and Z-AD Shareholders on or after 11 December and are set out in Note 9. Reports on the progress of the are published on or before 31 March and 31 July each year and shall be made available to Shareholders free of charge on request. The price of and the income from them can go down as well as up. Please note that past performance is not necessarily a guide to future performance. 08 Invesco s Series 3

11 Technology Portfolio Statement As at 31 May 2017 The Portfolio of Investments (analysed by industrial sector) Fair Value of (Ordinary shares quoted unless otherwise stated) Value Investment Holding $ % INTERNET (25.92%) (30 November 2016: 23.49%) Alibaba Group Holding Ltd 38,481 4,767, Alphabet Inc Class A 7,755 7,725, Alphabet Inc Class C 1,665 1,624, Amazon.com Inc 10,319 10,283, Baidu Inc 6,820 1,295, Facebook Inc 39,605 6,034, Priceline Group Inc 1,043 1,937, ,668, SOFTWARE (17.52%) (30 November 2016: 15.56%) Activision Blizzard Inc 52,892 3,098, Electronic Arts Inc 28,357 3,199, First Data Corp 100,722 1,693, Microsoft Corp 73,969 5,207, salesforce.com Inc 35,266 3,204, ServiceNow Inc 8, , Take-Two Interactive Software Inc 39,248 2,985, Ubisoft Entertainment SA 44,461 2,447, ,764, SEMICONDUCTORS (9.12%) (30 November 2016: 10.31%) Applied Materials Inc 38,047 1,733, Broadcom Ltd 21,876 5,246, Integrated Device Technology Inc 100,954 2,586, NVIDIA Corp 15,702 2,274, ,840, COMPUTERS (8.11%) (30 November 2016: 7.64%) Apple Inc 68,555 10,535, BIOTECHNOLOGY (5.99%) (30 November 2016: 9.51%) Alexion Pharmaceuticals Inc 13,339 1,304, Biogen Inc 2, , BioMarin Pharmaceutical Inc 11,887 1,044, Celgene Corp 28,984 3,336, Incyte Corp 11,982 1,563, ,775, DIVERSIFIED FINANCIAL SERVICES (5.10%) (30 November 2016: 2.07%) Mastercard Inc 19,448 2,364, Visa Inc 45,048 4,265, ,630, HOME FURNISHINGS (4.05%) (30 November 2016: 4.34%) Sony Corp 144,500 5,262, TOYS/GAMES/HOBBIES (3.69%) (30 November 2016: 1.93%) Nintendo Co Ltd 15,800 4,797, MEDIA (3.44%) (30 November 2016: 4.51%) DISH Network Corp 70,279 4,471, PHARMACEUTICALS (3.13%) (30 November 2016: 3.24%) Allergan Plc 8,233 1,829, Eli Lilly & Co 14,626 1,145, Merck & Co Inc 16,690 1,082, ,058, TELECOMMUNICATIONS (2.72%) (30 November 2016: 3.20%) Sprint Corp 417,742 3,532, AEROSPACE/DEFENSE (2.66%) (30 November 2016: 4.09%) Raytheon Co 21,226 3,456, HEALTHCARE-PRODUCTS (2.38%) (30 November 2016: 2.67%) Intuitive Surgical Inc , Invesco s Series 3

12 Technology Portfolio Statement (continued) As at 31 May 2017 The Portfolio of Investments (analysed by industrial sector) Fair Value of (Ordinary shares quoted unless otherwise stated) Value Investment Holding $ % HEALTHCARE-PRODUCTS (2.38%) (30 November 2016: 2.67%) (continued) Stryker Corp 9,209 1,307, Thermo Fisher Scientific Inc 8,794 1,523, ,093, HEALTHCARE-SERVICES (1.98%) (30 November 2016: 0.85%) UnitedHealth Group Inc 14,594 2,576, BANKS (1.12%) (30 November 2016: 1.38%) SVB Financial Group 8,386 1,457, AGRICULTURE (1.08%) (30 November 2016: 1.09%) Philip Morris International Inc 11,713 1,405, COMMERCIAL SERVICES (Nil) (30 November 2016: 3.65%) Total Value of Investments (Cost $90,095,021) 127,326, Total Financial Assets 127,326, Cash and Cash Equivalents (see Note 5 for details) 2,327, Bank Overdraft (see Note 5 and Note 6 for details) (950) (0.00) Other Net Current Assets 257, Total Value of the at 31 May ,910, % of Analysis of total assets Total Assets Transferable securities admitted to an official stock exchange listing or dealt in on another regulated market Other assets Invesco s Series 3

13 Technology Changes in the Composition of the Portfolio For the six months ended 31 May 2017 Purchases Cost $ Sales Proceeds $ Nintendo Co Ltd 2,017,673 QUALCOMM Inc 3,068,783 Amazon.com Inc 1,950,125 Amgen Inc 2,843,217 Alibaba Group Holding Ltd 1,889,737 Apple Inc 2,083,103 NVIDIA Corp 1,816,200 Alphabet Inc Class A 1,926,965 UnitedHealth Group Inc 1,743,243 Microsoft Corp 1,829,787 Ubisoft Entertainment SA 1,738,019 Raytheon Co 1,810,504 Incyte Corp 1,522,745 Amazon.com Inc 1,772,286 Baidu Inc 1,288,073 Alphabet Inc Class C 1,652,174 Stryker Corp 1,271,195 Medtronic Plc 1,466,265 Merck & Co Inc 1,174,515 Biogen Inc 1,465,878 Take-Two Interactive Software Inc 989,688 Time Warner Inc 1,381,041 Alexion Pharmaceuticals Inc 845,815 Facebook Inc 1,359,388 DISH Network Corp 802,087 Sprint Corp 1,092,368 Broadcom Ltd 711,268 Visa Inc 976,676 Biogen Inc 709,040 Harman International Industries Inc 975,559 Sony Corp 674,194 First Data Corp 957,485 Priceline Group Inc 628,085 DISH Network Corp 920,069 Sprint Corp 551,051 Broadcom Ltd 905,726 Facebook Inc 516,692 Alexion Pharmaceuticals Inc 889,596 Electronic Arts Inc 372,379 Celgene Corp 880,190 Apple Inc 348,708 Allergan Plc 809,629 Eli Lilly & Co 299,764 Alkermes Plc 788,055 Applied Materials Inc 285,031 salesforce.com Inc 683,299 Activision Blizzard Inc 268,514 Sony Corp 678,257 Intuitive Surgical Inc 262,039 Alibaba Group Holding Ltd 658,309 Other Purchases 1,501,631 Integrated Device Technology Inc 594,403 Total cost of purchases since 01 December ,177,511 Mastercard Inc 546,298 Thermo Fisher Scientific Inc 535,167 Electronic Arts Inc 524,925 NXP Semiconductors NV 511,451 Activision Blizzard Inc 493,892 Nintendo Co Ltd 471,224 SVB Financial Group 468,319 Take-Two Interactive Software Inc 421,441 Other Sales 3,496,810 Total proceeds of sales since 01 December ,938, Invesco s Series 3

14 Statement of Financial Position As at 31 May 2017 Health Care Technology Notes $ $ Assets Cash and cash equivalents 5/6 9,134,916 2,327,404 Balances due from brokers 291, ,830 Amounts due on creations 2,283, ,449 Financial assets at fair value through profit or loss 451,764, ,326,759 Other accrued income and prepaid expenses 502,848 99,009 Total assets 463,977, ,644,451 Liabilities Bank overdraft 5/6 (2,688) (950) Balances due to brokers (646,146) Amounts due on liquidations (656,649) (2,323) Management fee payable (170,194) (35,791) Administrator s fee payable (33,433) (4,027) Accrued expenses (72,466) (44,803) Total liabilities (excluding net assets attributable to holders of redeemable participating ) (935,430) (734,040) Net assets attributable to holders of redeemable participating 463,041, ,910,411 The accompanying Notes 1 to 13 on pages 19 to 24 form part of these Financial Statements. 12 Invesco s Series 3

15 Statement of Financial Position As at 30 November 2016 Health Care Technology $ $ Assets Cash and cash equivalents 15,038, ,749 Amounts due on creations 375,275 48,487 Financial assets at fair value through profit or loss 480,299, ,861,753 Other accrued income and prepaid expenses 363,986 92,927 Total assets 496,077, ,659,916 Liabilities Pre-funded trades (100,299) (6,337) Amounts due on liquidations (990,351) (142,663) Management fee payable (181,224) (34,014) Administrator s fee payable (35,648) (3,673) Accrued expenses (77,106) (48,991) Total liabilities (excluding net assets attributable to holders of redeemable participating ) (1,384,628) (235,678) Net assets attributable to holders of redeemable participating 494,693, ,424, Invesco s Series 3

16 Statement of Financial Position 31 May 2017 Total NAV in sub-fund currency Total NAV per Share in Number of Share in class issue currency 30 November 2016 Total NAV in sub-fund currency Total NAV per Share in Number of Share in class issue currency 30 November 2015 Total NAV in sub-fund currency Total NAV per Share in Number of Share in class issue currency Health Care () A-AD 269,691,208 2,224, ,227,290 2,450, ,239,089 2,775, B-AD 17, , , C-AD 192,847,401 1,404, ,952,626 1,643, ,871,335 1,728, Z-AD 485,734 37, ,433 40, ,091 52, Technology () A-AD 76,911,423 3,973, ,260,104 4,252, ,683,239 4,777, B-AD 10, , , C-AD 52,971,823 2,432, ,141,345 2,894, ,595,588 2,858, Z-AD 17,120 1, ,145 1, ,273 2, Invesco s Series 3

17 Income Statement For the six months ended 31 May 2017 Health Care Technology Notes $ $ Income Interest income 37,717 2,776 Dividend income 3,548, ,246 Other income 172 Net gain on financial assets and liabilities at fair value through profit or loss (realised and unrealised) 8 31,025,063 23,223,236 Total investment income 34,611,417 23,708,258 Expenses Management fee (4,313,693) (771,275) Administrator s fee (863,174) (179,111) Depositary fee (15,396) (3,807) Safekeeping and servicing fee (5,933) (1,596) Auditor s fee (7,092) (5,848) Other operating expenses (80,364) (22,133) Total operating expenses (5,285,652) (983,770) Operating profit 29,325,765 22,724,488 Finance costs Bank overdraft interest (2,024) (8) Total finance costs (2,024) (8) Profit before tax 29,323,741 22,724,480 Withholding tax (954,452) (109,653) Increase in net assets attributable to holders of redeemable participating 28,369,289 22,614,827 The accompanying Notes 1 to 13 on pages 19 to 24 form part of these Financial Statements. The s had no recognised gains or losses in the financial period other than those dealt with in the Income Statement. Gains and losses arose solely from continuing operations. 15 Invesco s Series 3

18 Income Statement For the six months ended 31 May 2016 Health Care Technology $ $ Income Interest income 23,041 3,806 Income from stock lending 40,163 2,191 Dividend income 5,100, ,119 Net loss on financial assets and liabilities at fair value through profit or loss (realised and unrealised) (56,765,352) (10,125,996) Total investment loss (51,601,402) (9,640,880) Expenses Management fee (4,831,152) (780,869) Administrator s fee (966,785) (182,244) Depositary fee (17,174) (3,873) Safekeeping and servicing fee (5,894) (1,568) Auditor s fee (8,708) (6,558) Other operating expenses (118,569) (28,591) Total operating expenses (5,948,282) (1,003,703) Operating loss (57,549,684) (10,644,583) Finance costs Bank overdraft interest (90) (226) Total finance costs (90) (226) Loss before tax (57,549,774) (10,644,809) Withholding tax (1,336,546) (127,955) Decrease in net assets attributable to holders of redeemable participating (58,886,320) (10,772,764) 16 Invesco s Series 3

19 Statement of Changes in Net Assets attributable to Holders of Redeemable Participating For the six months ended 31 May 2017 Health Care Technology $ $ Net assets attributable to holders of redeemable participating at beginning of period 494,693, ,424,238 Increase in net assets attributable to holders of redeemable participating 28,369,289 22,614,827 Share Transactions Proceeds from redeemable participating issued 17,510,935 9,436,081 Cost of redeemable participating redeemed (77,531,365) (22,564,735) Net assets attributable to holders of redeemable participating at the end of period 463,041, ,910,411 The accompanying Notes 1 to 13 on pages 19 to 24 form part of these Financial Statements. 17 Invesco s Series 3

20 Statement of Changes in Net Assets attributable to Holders of Redeemable Participating For the six months ended 31 May 2016 Health Care Technology $ $ Net assets attributable to holders of redeemable participating at beginning of period 617,848, ,324,663 Decrease in net assets attributable to holders of redeemable participating (58,886,320) (10,772,764) Share Transactions Proceeds from redeemable participating issued 55,791,520 27,907,036 Cost of redeemable participating redeemed (83,672,006) (27,473,216) Net assets attributable to holders of redeemable participating at the end of period 531,081, ,985, Invesco s Series 3

21 Notes to the Financial Statements For the six months ended 31 May Significant Accounting Policies (a) Basis of Preparation The condensed financial statements have been prepared under the historical cost convention as modified by the revaluation of financial assets and financial liabilities held at fair value through profit or loss. These condensed financial statements have been prepared in accordance with accounting standards generally accepted in Ireland (Irish GAAP) including Financial Reporting Standard ( FRS ) 104 Interim Financial Reporting and the European Communities (UCITS) Regulations, 2011, (the UCITS Regulations ) and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48( 1)) (UCITSs) Regulations 2015 (the Central Bank UCITS Regulations ). These condensed financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the annual financial statements for the year ended 30 November 2016, which have been prepared in accordance with accounting standards generally accepted in Ireland. Investments The s classify their investments in transferable securities and money market instruments as financial assets at fair value through profit or loss. For the purpose of determining the redemption value of the redeemable participating in the Portfolios, the investments held by the Portfolios are valued using amortised cost as a best estimate of fair value. Under FRS 102, in accounting for all of its financial instruments, an entity is required to apply either: (a) the full requirements of Sections 11 Basic Financial Instruments and Section 12 Other Financial Instruments Issues of FRS 102, or (b) the recognition and measurement provisions of International Accounting Standards 39 Financial Instruments: Recognition and Measurement ( IAS 39 ) as adopted for use in the European Union and the disclosure requirements of Sections 11 and 12, or (c) the recognition and measurement provisions of International Financial Reporting Standards ( IFRS ) 9 Financial Instruments and the disclosure requirements of Sections 11 and 12. The s have elected to apply the recognition and measurement provisions of IAS 39 and the disclosure requirements of Sections 11 and 12. In normal market conditions, the difference between the two valuation bases is not significant. The s have availed of the exemption permitted to open-ended investment funds under FRS102, Section 7 Statement of Cash Flows not to prepare a cash flow statement. Dividends, interest and capital gains received on investments made by the s may be subject to withholding taxes imposed by the country from which the investment income/gains are received and such taxes may not be recoverable by the s or its Shareholders. (b) Foreign Currency Translation (i) Functional and presentation currency Items included in each s Financial Statements are measured using the currency of the primary economic environment in which it operates ( the functional currency ). This is the US Dollar ($). The US Dollar is also the presentation currency. The Financial Statements are presented in the s functional and presentation currency and rounded to the nearest whole number. They are prepared on the fair value basis for financial assets and financial liabilities at fair value through profit or loss and derivative financial instruments. Other financial assets and financial liabilities are stated at amortised cost or redemption amount (redeemable ). (ii) Assets and liabilities in foreign currencies are translated into US Dollars at the rates of exchange ruling at the Statement of Financial Position date. Income and expenditure transactions are translated at the rates of exchange ruling at the date of the transactions. The principal exchange rates used: US$ May November May 2016 Australian Dollar Brazilian Real Canadian Dollar Czech Koruna Danish Krone Egyptian Pound Euro Hong Kong Dollar Indian Rupee Indonesian Rupiah 13, , , Japanese Yen Malaysian Ringgit New Zealand Dollar Nigeria Naira Norwegian Kroner Philippine Peso Pound Sterling Singapore Dollar South African Rand South Korean Won 1, , , Swedish Krona Swiss Franc Taiwan Dollar Thailand Baht Turkish Lira Uruguay Peso To determine the net asset value of each for subscriptions and redemptions, investments have been valued based on the mid market prices at 12.00pm (Irish time) on the relevant trading day. For Financial Statements purposes, investments are valued based on mid market prices. 2. UK Reporting The offshore s (Tax) Regulations 2009 and Subsequent Regulations Amendments ( the Regulations ) introduced new provisions to update offshore funds regime and came into effect for periods of accounting commencing after 1 December The Reporting s Regime requires: 1. The reporting fund status is applied for once and in advance. 2. The relevant Share classes to report details of Income annually, within six months of their accounting year end to both Investors and UK authorities. 3. Investors to provide details of reportable income on their annual tax return. The following Share Classes currently have UK Reporting Status; Health Care Technology A-Dist, C-Dist & Z-Dist A-Dist, C-Dist & Z-Dist The Statement of Reportable Income for the financial year ended 30 November 2016 is available through the following Invesco websites Invesco s Series 3

22 Notes to the Financial Statements (continued) For the six months ended 31 May Soft Commissions and Related Party Transactions The s, (consistent with obtaining the best net result, including best execution), may enter into agreements with counterparties whereby those counterparties may make payments for investment services provided to the s. Investment services are used by the s to improve or add to the services provided to its clients. Although each and every service may not be used to service each and every account managed by the s, the Directors of the Manager consider that those investment services received are, in the aggregate, of significant assistance in fulfilling its investment responsibilities and are of demonstrable benefit to all clients. Only services that in the view of the Directors of the Manager assist in the provision of investment services to the s clients will be paid for by counterparties. Allowable investment services include services that provide assistance to the s in their investment performance. Those services include, but are not necessarily limited to, furnishing analysis, research and advisory services including economic factors and trends, portfolio valuation and analysis, performance measurement, market prices services and the use of specialised computer software and hardware or other information facilities. The s will ensure adherence to the investment decision making responsibilities to their clients in accordance with the laws of the countries that have jurisdiction over their clients or business. This may vary in application with respect to the appropriateness of those investment services provided. The s select counterparties to execute transactions on the basis that transactions will only be executed provided the placing of orders will not operate against the best interest of the s clients and that the multiple is at a level which is generally accepted market practice. The s will endeavour to obtain best execution on all transactions for all clients. In addition, clients may direct the s to pay commission to counterparties for products and services that would otherwise have to be paid for. In such cases, the commission is used for the exclusive benefit of the client whose transactions generated that commission. The Manager, Administrator and Global Distributor ( Asset Management DAC) are deemed to be Related Parties under Financial Reporting Standard No Fees charged, out of the, by the Manager and Administrator are disclosed in the Income Statement on page 15. Amounts payable at the period end are disclosed in the Statement of Financial Position on page 12. The Manager may pay a portion of its administration fees to BNY Mellon Services (Ireland) Designated Activity Company, the Sub-Administrator, in consideration for the Sub-Administrator providing certain administration functions to the s. Fees for the Global Distributor are paid from the Management fee. The Manager, Asset Management DAC is a wholly owned subsidiary of Invesco UK Limited, which is a wholly owned subsidiary of Invesco Limited, the group parent company. Directors Fees are not paid by the s during the period under review. Directors fees are paid by Asset Management DAC. There were no Director s holdings in the s for the period ended 31 May 2017 and the year ended 30 November Invesco UK Limited, held a beneficial interest in the shares representing approximately the following percentages of the total number of shares in issue of the relevant class: Seed Capital Invesco UK Limited held the following redeemable participating in the s and class as detailed below: Number of at the start of the Period Number of acquired in the Period Number of redeemed in the Period Number of at Period end Percentage of Total For the Period Ended 31 May 2017 Health Care B-AD Health Care Z-AD Technology Z-AD Number of at the start of the year Number of acquired in the year Number of redeemed in the year Number of Percentage of at Total year end For the Year Ended 30 November 2016 Health Care B-AD Health Care Z-AD Technology Z-AD Fair Value Estimation The s have adopted the Amendments to FRS 102 Fair Value Hierarchy Disclosures, which is effective for accounting periods beginning on or after 1 January The fair value of financial assets and liabilities traded in active markets (such as publicly trading securities) are based on quoted market prices at 12:00pm (Irish Time) on 31 May 2017 for Financial Statement purposes. The quoted market price used for financial assets held by the s is the current mid price. The appropriate quoted market price for financial liabilities is the current asking price. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm s length basis. 20 Invesco s Series 3

23 Notes to the Financial Statements (continued) For the six months ended 31 May Fair Value Estimation (continued) The s are exposed to daily cash redemptions of redeemable. They therefore invest the majority of their assets in investments that are traded in an active market and can be readily disposed of; they invest only a limited proportion of their assets in investments not actively traded on a recognised market. For instruments for which there is no active market, the s may use internally developed models, which are usually based on valuation methods and techniques generally recognised as standard within the industry. Valuation models are used primarily to value unlisted equity instruments for which markets were or have been inactive during the financial period. Some of the inputs to these models may not be market observable and are therefore estimated based on assumptions. The output of a model is always an estimate or approximation of a value that cannot be determined with certainty, and valuation techniques employed may not fully reflect all factors relevant to the positions the s hold. Valuations are therefore adjusted, where appropriate, to allow for additional factors including model risk, liquidity risk and counterparty risk. The carrying value of other receivables and payables are assumed to approximate their fair values. The s classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1). Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2). Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3). The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability. The determination of what constitutes observable requires significant judgement by the Directors of the Manager. The s consider observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments. The following tables analyse within the fair value hierarchy the s financial assets and liabilities measured at fair value in accordance with FRS102 and FRED 62 Amendments to FRS 102 Fair Value Hierarchy Disclosures. 31 May 2017 Health Care Level 1 Level 2 Level 3 Total Financial assets designated at fair value through profit or loss at inception: $ $ $ $ Equity securities 451,764, ,764,638 Total Investments 451,764, ,764,638 Technology Level 1 Level 2 Level 3 Total Financial assets designated at fair value through profit or loss at inception: $ $ $ $ Equity securities 127,326, ,326,759 Total Investments 127,326, ,326, Invesco s Series 3