Your SlideShare is downloading. ×
0
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Citywire event 092012 ahnrud complied 30_08_12
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Citywire event 092012 ahnrud complied 30_08_12

416

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
416
On Slideshare
0
From Embeds
0
Number of Embeds
11
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Invesco Balanced-Risk Allocation FundSecond Quarter 2012This presentation is for Professional Clients only and is not to be redistributed.
  • 2. Table of Contents 1. Invesco Organizational Structure 2. Fund Overview and Investment Process 3. Fund Performance and Positioning 4. Additional Information2
  • 3. 1. Invesco Organizational Structure
  • 4. Invesco Investment CapabilitiesIntentional InvestingSM is the science and art of Invesco Invesco Invesco Global Fundamentalinvesting with purpose, prudence and diligence. Asia-Pacific Equities StrategiesIt‘s the philosophy that forms the foundation of our Investment Focus:  Asian ex Japan Investment Focus: Investment Focus:  Global equity (global, non-  US growth equity„investors first“ approach, exemplified by our  Greater China  Japan  US core equity US and emerging market equities)  Australia  US value equity  Canadian equitiescommitment to investment excellence, depth of Locations: Beijing, Hong Kong, Melbourne,  International and global growth equity  Global quantitative equity (quantitative active,investment capabilities and organizational strength. Shenzhen, Sydney, Taipei, Tokyo  Sector equity  Balanced portfolios enhanced and long/short strategies)As an independent firm, our global organization is Locations: Austin, Houston, San Francisco  Global asset allocation (global macro, risk parity,solely focused on investment management: commodities and active balanced solutions) Locations: Atlanta, Boston, Frankfurt, Melbourne, New York, Tokyo, Toronto More than 600 investment professionals Global assets under management Invesco Fixed Income Invesco Perpetual Atlantic Trust of $672.8 billion Investment Focus: Investment Focus: • Global and regional Investment Focus:  High-net-worth wealth Investment expertise in 11 countries • Global money markets and cash management equities including UK, European, Asian, management  US-equities; master More than 6,000 employees worldwide • Stable value • Global and US broad Japanese and emerging markets limited partnerships (MLPs) fixed income • Fixed income  Multi-manager investment • Global alternatives and Locations: Henley, UK program bank loans Locations: Atlanta, Austin, Locations: Chicago, Hong Baltimore, Boston, Chicago, Kong, Houston, London, Denver, Houston, New York, Louisville, Melbourne, New Newport Beach, CA, San York, Palm Harbor, FL, San Francisco, Washington, D.C. Diego, Tokyo Invesco Real Estate Invesco PowerShares Invesco Canada Invesco Private Invesco Unit WL Ross & Co. Capital Investment Trusts Investment Focus: Investment Focus: Investment Focus: Investment Focus:  Global direct real estate Index-based ETFs and ETNs Trimark Investment  Distressed and Investment Focus: Investment Focus: investing and actively managed ETFs  Canadian, regional, restructuring private  Private equity funds of  Equity trusts  Global public real estate  Domestic and international sector and global equity equities funds  Closed-end trusts investing equity  Canadian and global  Energy private equities  Customized portfolios  Tax-free fixed-income Locations: Atlanta, Dallas,  Taxable and tax-free fixed fixed income Locations: Beijing, Mumbai, Locations: London, New trusts Hong Kong, London, income  Balanced portfolios New York, Tokyo York, San Francisco  Taxable fixed-income Luxemburg, Madrid, Munich,  Commodities and Locations: Toronto trusts New York, Newport Beach, currencies Location: Chicago CA, Paris, Prague, San Location: Chicago Fransisco, Seoul, Shanghai, Singapore, TokyoSource: Invesco. Client-related data, investment professional and employee data are as of June30, 2012. Invesco Ltd. assets under management are as of June 30, 2012.4
  • 5. Invesco Global Asset AllocationCapabilities Global Asset Allocation US$18.4 B Risk Parity Strategies Commodity Strategies Market Selection Strategies US$11.4 B US$0.9 B US$6.1 B  Balanced-Risk Allocation  Balanced-Risk Commodity  Active Balanced Strategy Strategy  Macro Overlay  Balanced-Risk Retirement  Capital Protection Strategy  Premium Income Strategy  US$18.4 billion in assets  Team founded in 2000  10 team members with over 17 years average experienceSource: Invesco. Data as of 30/06/12.5
  • 6. Invesco Global Asset Allocation Team In the With the Team Member Education Industry Since Firm Since Scott Wolle, CFA 1991 1999 Duke University, M.B.A. Chief Investment Officer Virginia Tech, B.S. Mark Ahnrud, CFA 1985 2000 Duke University, M.B.A. Portfolio Manager Babson College, B.S. John Centner 1999 2012 University of Tennessee, B.A. Investment Analyst Chris Devine, CFA 1996 1998 University of Georgia, M.B.A. Portfolio Manager Wake Forest University, B.A. Raymond Fu 2007 2007 Georgia State University, M.S. Quantitative Analyst Georgia Institute of Technology, B.S.As of 06/12. The investment team is supported by 4 traders based in London, Hong Kong and Atlanta, 4 dedicated Operations full timeemployees and 2 product managers. The CFA® designation is globally recognized and attests to a charterholder’s success in a rigorous andcomprehensive study program in the field of investment management and research analysis.6
  • 7. Invesco Global Asset Allocation Team In the With the Team Member Education Industry Since Firm Since David Gluch, CFA 1995 1995 University of Texas, B.B.A. Client Portfolio Manager* Scott Hixon, CFA 1992 1994 Georgia State University, M.B.A. Portfolio Manager, Head Georgia Southern University, B.B.A. of Investment Research Mike McHugh, CFA 1996 1998 Bellevue University, B.S. Client Portfolio Manager* Dr. Bernhard Pfaff 1998 2005 University of Freiburg i. Br., Portfolio Manager Doctorate Degree and Diploma Christian Ulrich, CFA 1987 2000 KV Zurich Business School, Portfolio Manager SwitzerlandAs of 06/12. The investment team is supported by 4 traders based in London, Hong Kong and Atlanta, 4 dedicated Operations full timeemployees and 2 product managers. The CFA® designation is globally recognized and attests to a charterholder’s success in a rigorous andcomprehensive study program in the field of investment management and research analysis. *The primary responsibilities of the client portfoliomanager (CPM) are to represent the investment team in the marketplace and to help manage the team’s business responsibilities. The CPM doesnot manage fund assets.7
  • 8. 2. Investment Process
  • 9. Invesco Balanced-Risk Allocation FundOverview Balanced-Risk Allocation Fund1 Total return asset allocation solution that seeks to balance the risk across economic outcomes. Strategic Asset Allocation: Tactical Allocation: Balances risk equally among long- Uses active positioning only investments. Economic to enhance return outcomes covered by investments in derivatives of equities, government bonds and commodities21The Fund will make significant use of financial derivative instruments for investment purposes. This means that the net asset value of the Fundmay, at times, be highly volatile. The use of financial derivative instruments involves certain risks (including market or communication breakdown)and there is no assurance that the objectives for the use of such instruments will be achieved. Please refer to the risk warnings at the end of thispresentation.2The aggregate notional/contract value of long financial derivative instruments positions can be as much as 200% (expressed in net assets of thefund).9
  • 10. Invesco Balanced-Risk Allocation Fund 3-Step Investment Process 1  Focus on Economic Diversification  Seeks Intelligent Beta: purpose-build asset class exposures Asset  Targets highly liquid assets SelectionStrategic 2  Seeks to balance risk across assets  Aims to minimize risk of large drawdowns Portfolio Construction 3  Goal of capturing additional return with active positioningTactical  Aims to adapt to the current market environment Active Positioning For illustrative purposes only. Although every effort will be made, it cannot be guaranteed that the stated targets will be reached. 10
  • 11. Invesco Balanced-Risk Allocation FundDifferent Economic Scenarios are likely to favor different Asset Classes Inflationary Growth Non-Inflationary Growth Included: Included:  Commodities  Developed Equities Excluded: Inflation Growth Excluded:  Direct Real Estate Hedges Assets  Emerging Equities  Infrastructure  Private Equity  TIPS  High Yield/Credit Deflation Hedges  Long-Term Government Bonds (hedged) RecessionSource: Invesco analysis. For illustrative purposes only.11
  • 12. Invesco Balanced-Risk Allocation StrategyInvestment Objectives by Asset Class Equities Fixed Income Commodities Objective: Objective: Objectives: Attractive Return Effective “Shock Attractive Return per Unit of Risk Absorber” During per Unit of Risk Recessions & Crises High Correlation with Unexpected Inflation Non-Inflationary Growth Recession Inflationary Growth • High liquidity: at least US$1 billion in daily trading volume standardized to 10% volatility • Minimize counter-party exposure • Transparent pricingSource: Invesco analysis. For illustrative purposes only.12
  • 13. Invesco Balanced-Risk Allocation StrategyStep one: asset selection and equity exposure design Performance by Market Capitalization Austria Norway Equity Market (sorted by market capitalization) Balances Risk: Belgium With no clear indication of higher Denmark Sharpe ratios for larger markets, the Singapore appropriate allocation decision is based Italy on an equal risk contribution. Netherlands Hong Kong Spain Sweden Avoids Concentration Risk: Australia Capitalization-based benchmarks result Switzerland in overly concentrated portfolios Germany without an improvement in expected France return. Canada Japan UK US -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 Range of Sharpe ratiosSources: THOMSON REUTERS DataStream, MSCI Inc. via FactSet Research Systems, Inc. and Invesco analysis. Maximum and minimum rolling 10year Sharpe ratios from 31/12/81 through 31/12/11. Sorted by 31/12/11 market capitalization in ascending order. For illustrative purposes only.13
  • 14. Invesco Balanced-Risk Allocation StrategyStep two: asset selection and fixed income exposure design Credit Adjustment1 Asset Selection: Fixed income assets should be chosen on the basis of their ability to react in Define universe of countries: an uncorrelated way to macroeconomic ≥US$100 billion GDP and Universe readily available CDS spread and/or market dislocations. Exposures data. should reflect volatility and quality characteristics. Define cut-offs for safe-haven and risky assets: 25th Duration Weights: Safe-Haven Risky percentile defines safe-haven Strategically, each market contributes and 50th represents risky. an equal amount to portfolio modified duration. This creates a bias toward higher yielding markets. Map the selected markets to 100% the percentiles and weights. 0% ≤25th percentile for full weight; median and above Credit Quality Adjustment: receive no weight. The markets in the strategy are compared to a broad universe of countries to evaluate credit quality. The process reduces or eliminates exposure Credit Quality Adjust the duration-weights to to markets whose CDS* spread is Adjustment reflect country credit risk. above the bottom quartile.Sources: Bloomberg and Invesco analysis from 01/10/09 through 30/06/12. *Credit Default Swaps.1For illustrative purposes only.14
  • 15. Invesco Balanced-Risk Allocation StrategyStep three: asset selection and commodity exposure design 20 Backwardation Term Structure: 16 Certain commodities tend to Gasonline exhibit backwardation over time Average Annualized Excess Return vs. Cash (%) which contributes to positive 12 returns Brent 8 Gasoil Soy Meal Heizöl Silver Copper Sugar Optimal Roll: 4 WTI Crude Oil Gold Understanding the dynamics Soybeans around the differing contract 0 Live Cattle maturities is important and can Soybean Oil add value Aluminium -4 Coffee Corn Cotton -8 Rebalancing: Wheat Our research shows that correlations within a commodity -12 complex (i.e. metals) are high. Conversely, correlations across -16 Natural Gas commodity complexes are low. Contango This creates opportunities for -20 rebalancing return. -20 -15 -10 -5 0 5 10 15 20 Average Annualized Term Structure (%)Sources: Invesco analysis and THOMSON REUTERS DataStream. Time period represented: 12/91 – 12/11. Backwardation refers to a statuswhere prices of futures contracts with a longer maturity are lower than the spot price of the commodity. Contango refers to a status whereprices of futures contracts with a longer maturity are higher than the spot price of the commodity. Past performance is not a guarantee of futureresults. For illustrative purposes only.15
  • 16. Invesco Balanced-Risk Allocation FundStrategic Asset Allocation Equities1 Fixed Income1 Commodities1 Hang Japanese US Seng S&P Govt 500 Treasuries WTI / Index Bonds Div. Agrar- Brent Diversified WTI Crude/ rohstoffe Rohöl Agriculture Brent Crude Tokyo Russel Canadian Stock Price Govt Bonds UK Gilts 2000 Index Index Gold Kupfer Copper Gold EuroStoxx FTSE 100 Australian German 50® Index Index Govt Bunds Bonds 1/3 des gesamten 1/3 Total Portfolio Risk 1/3 Total Portfolio Risk 1/3 Total Portfolio Risk Portfoliorisikos Equity, Fixed Income and Commodity exposures are achieved with 2CFTC-approved exchange traded futures and other derivative instruments (Exchange Traded Commodities (ETCs)/Exchange Traded Funds (ETFs) Cash is invested in short term cash instruments, such as German Bills (or local equivalent), overnight deposits and money market funds1Can be implemented with physical securities, but is typically implemented with derivatives or financially linked instruments.2US Commodity Futures Trading Commission.Source: Invesco. For illustrative purposes only. For fixed income securities, modified duration is used to determine the initial risk-balanced allocationamong the individual markets. These weights can be further adjusted to reflect a country’s creditworthiness. Although the objective is to achieve arisk profile corresponding to the risks of a mixed portfolio with equities and fixed income, there is no guarantee that this aim will be achieved andthe net asset value of the fund can be very volatile from time to time. Asset classes are subject to change and are not buy/sell recommendations.16
  • 17. Invesco Balanced-Risk Allocation FundAsset Weight vs. Risk Contribution Illustrative Equity Tilted Balanced Portfolio Asset Weight Risk Contribution 100% Fixed Income 80% Fixed Income Weight % 60% Weights drive 40% risk allocation Stocks 20% Stocks 0% Risk = 10% Invesco Balanced-Risk Allocation Fund Risk Contribution Asset Weight 160% 140% Fixed Income 120% Fixed Weight % 100% Risk allocation Income drives weights 80% Fixed 60% Income Stocks Commodities Commodities 40% Commodities 20% Stocks Stocks 0% Unlevered Portfolio Risk Levered Portfolio Risk = 5.5%* = 8%*Sources: Invesco analysis and THOMSON REUTERS DataStream. For illustrative purposes only. Commodities are represented bythe S&P Goldman Sachs Commodity Index. Fixed Income is represented by the Barclays Treasury Index. Equities are representedby the S&P 500 Index. Asset classes are subject to change and are not buy/sell recommendations. *Risk target.17
  • 18. Invesco Balanced-Risk Allocation FundActive Positioning: From the Strategic to the Tactical Allocation 100% Valuation Active Positioning: 90% 15-20% of Target Determine whether assets are attractively priced relative to 80% fundamentals. Classic financial Risk Premia: concepts are utilized. Annualized Excess Return 70% 80-85% of Target 60% Economic Environment 50% Consider the effect of monetary 40% policy and the economic environment on asset prices. 30% 20% Investor Positioning 10% Assess the impact of historic price movements on likely 0% future returns. Expected Long Term Sources of ReturnSource: Invesco analysis. For illustrative purposes only. Although every effort will be made, it cannot be guaranteed that the stated targets will bereached. The annualized contribution to total return is the contribution on top of the cash return.18
  • 19. Invesco Balanced-Risk Allocation FundActive Positioning: From the Strategic to the Tactical Allocation Composition of Risk Level of Risk  Strategic Allocation is calculated through Strategic Strategic volatility and correlation 10% estimates and re-set 33% 8,0 % 8% monthly 22% 6%  Active positioning Risk (%) Risk (%) 4% allows the asset 11% weights to deviate from 2% the long-term strategic allocation and is 0% 0% Equities Fixed Income Commodities Strategic adjusted monthly Tactical Range Tactical Range  Depending on the 50% tactical indicators, the 10% portfolio can be 40% 33% strategic 8,0 % 6-10 positioned within the allocation 8% pre-determined risk 30% 6% ranges Risk (%) Risk (%) 20% 4%  Tracking error target of 10% 2% 2% relative to strategic allocation 0% 0% Equities Fixed Income Commodities TacticalAsset classes are subject to change and are not buy/sell recommendations. Source: Invesco analysis. Above figures do not represent specific timeperiods or actual portfolio results. For illustrative purposes only.19
  • 20. Invesco Balanced-Risk Allocation Fund Targeted Risk Contribution Since Fund Inception* Equities Fixed Income Commodities 100%Risk Contribution (%) 75% 66% 50% 33% 25% 0% Minimum (%) Average (%) Maximum (%) Equities 16.73 34.79 49.85 Fixed Income 18.72 33.64 49.93 Commodities 22.00 31.57 39.88 Source: Invesco analysis. *Fund Inception: 01/09/09. Data as of 30/06/12. Based upon the targeted risk contribution. 20
  • 21. 3. Fund Performance and Positioning
  • 22. Invesco Balanced-Risk Allocation Fund Performance as of 30 June 2012 Balanced-Risk Allocation Fund 60% MSCI World & 40% JPM Europe Government Bond Index 20% 13.11% 13.05% 13.60% 11.51% 8.51% 9.51% 10% 7.30% 6.80%Return (EUR) 3.17% 1.40% 0.17% 0% -1.35% -1.16% -4.64% -10% Greek Sovereign Debt Global Economic Recovery Recovery Recovery Financial Crisis Concerns Slowdown -20% 09/09 - 03/10 04/10 - 06/10 07/10 - 04/11 05/11 - 09/11 10/11 - 03/12 04/12 - 06/12 Since Launch* Annualized Attribution Since Returns % as of Since Launch Since Launch 3 Months 1 Year Launch* (Gross) % 30 June 2012 cumulative* annualized* Fixed Income 6.40 Invesco Balanced-Risk Allocation -1.16 10.74 36.10 11.51 Fund (Class A acc NAV) Equities 1.97 60% MSCI World/40% JPM Europe Commodities 3.13 0.17 8.99 29.33 9.51 Gov’t Bond Index Active Positioning 1.07 Excess vs. Index -1.33 1.75 6.77 2.00 Cash 0.76 *Launch date: 01/09/09. As of 30/06/12. Past performance is not an indication for future performance, provides no guarantee for the future and is not constant over time. Source: Morningstar, mid to mid, gross income reinvested in fund currency. The figures do not reflect the initial charge payable by individual investors. Past performance is not an indication of future performance, provides no guarantee for the future and is not constant over time. The value of investments and income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Current tax levels may change. Depending on individual circumstances, this may affect investment returns. 22
  • 23. Invesco Balanced-Risk Allocation Fund Performance as of 30 June 2012 200 180 160 140 Upside (%) 120 100 Invesco Balanced-Risk 60% MSCI World & 40% JPM 80 Allocation Fund Europe Government Bond Index 60 40 20 0 0 20 40 60 80 100 120 140 160 180 200 Downside (%) No. Months Avg Return (%) Avg Return vs. Month (%) 1 Year (%) Market Benchmark (%) Market (%) Up Down Up Down Up Up Down Down Best Worst Best Worst R2 Capture CaptureInvesco Balanced-Risk Allocation Fund 24 10 2.06 -1.56 1.63 -0.17 3.99 -3.42 16.64 8.48 83.1 17.6 0.160% MSCI World & 40% JPM Europe Government 22 12 1.92 -1.14 1.92 -1.14 4.62 -3.30 15.99 -0.55 100.0 100.0 1.0Bond Index *Launch date: 01/09/09. As of 30/06/12. Past performance is not an indication for future performance, provides no guarantee for the future and is not constant over time. Source: Zephyr StyleADVISOR. The value of investments and income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Current tax levels may change. Depending on individual circumstances, this may affect investment returns. 23
  • 24. Invesco Balanced-Risk Allocation Fund - UCITS Rolling 30 Day Volatility 30 Invesco Balanced-Risk Allocation Fund A 28 60% MSCI World/40% JPM Europe Govt. Bond 26 24 22 20 18 Volatility (%) 16 14 12 10 8 6 4 2 0 10/02/2009 11/13/2009 12/25/2009 02/05/2010 03/19/2010 04/30/2010 06/11/2010 07/23/2010 09/03/2010 10/15/2010 11/26/2010 01/07/2011 02/18/2011 04/01/2011 05/13/2011 06/24/2011 08/05/2011 09/16/2011 10/28/2011 12/09/2011 01/20/2012 03/02/2012 04/13/2012 05/25/2012 Sources: Bloomberg L.P. and Invesco analysis. Daily data from 01/10/09 to 30/06/12. Volatility is measured by the daily standard deviation of the fund. The Custom Balanced Risk Allocation Style Index is represented by 60% MSCI World IndexSM, which is an unmanaged index considered representative of stocks of developed countries, and 40% JPMorgan European Government Bond Index, which is an unmanaged index considered representative of EUR sovereign debt fixed-income markets. An investment cannot be made directly in an index. Past performance cannot guarantee comparable future results.24
  • 25. Invesco Balanced-Risk Allocation FundTargeted Active Positioning and Risk Allocation as of 30 June 2012 Equities Fixed Income Commodities  Euroland  Australian Gov’t Agriculture Energy  Hongkong  Canadian Gov’t Diversified  Japan  German Bunds  ● Brent Crude Agriculture  UK  Japanese Gov’t Precious  WTI Crude Metals  US Large-Cap  UK Gov’t Industrial  Gold  US Small-Cap  US Treasuries Metals  CopperOverweight position  Neutral position ● Underweight Position  Target Marginal Risk Target Notional Complex Target Risk Allocation Contribution Asset Weight Equities 3.15 36.35 30.76 Fixed Income 2.92 33.69 81.84 Commodities 2.60 29.95 27.21 Total 8.67% 100.00% 139.81Source: Invesco analysis. As of 30/06/12.Explanatory notes: The indicators (overweight, underweight, neutral) are in relation to the strategic allocation for the fund. The total target(levered) portfolio risk from the strategic allocation is 8% (approx. 2.7% from each asset class or one third of 8%, in accordance with the equalrisk contribution concept). The 8 % target portfolio risk from the strategic allocation is expanded to a range of 6% - 10% for the active positioningto reflect over- and underweight positions. Target risk weights are derived from the target risk from each asset class. Asset class weightsrepresent the month-end asset class exposure.Risk is measured as standard deviation. Can be implemented with physical securities, derivatives or financially linked instruments.25
  • 26. 4. Additional Information
  • 27. % Targeted Asset Class27 Total Notional Weights of Notional Exposure (%) Exposure 0% 20% 40% 60% 80% 100% 130% 140% 150% 160% 180% 190% 200% 170% 09/09 09.09 10/09 10.09 11/09 11.09 12/09 12.09 01/10 01.10 02/10 02.10 03/10 03.10 04/10 04.10 05/10 05.10 06/10 06.10 07/10 07.10 08/10 08.10 09/10 09.10 10/10 10.10 11/10 11.10 Source: Invesco analysis. *Fund Inception: 31/08/09/ Data from 09/09 to 06/12. Invesco Balanced-Risk Allocation Fund 12/10 12.10 01/11 01.11 02/11 02.11 03/11 03.11 Targeted Notional Exposure Since Fund Inception* 04/11 04.11 05/11 05.11 06/11 06.11 07/11 07.11 08/11 08.11 09/11 09.11 Stocks 10/11 10.11 11/11 11.11 12/11 12.11 Bonds 01/12 01.12 02/12 02.12 03/12 03.12 04/12 04.12 05/12 05.12 Commodities 06/12 06.12
  • 28. Invesco Balanced-Risk Allocation FundBenefits Seeks to balance the Unlike traditional In addition, a tactical risk across economic balanced portfolios in asset allocation model is outcomes by investing in which equity risk is applied to enhance asset classes that are typically dominant, the return potential. expected to perform fund aims to limit differently in each downside risk by economic environment. weighting each asset class so that it contributes a relatively equal amount of risk to the portfolio over time.Please refer to the risk warnings at the end of this presentation and included in the Prospectus.28
  • 29. Invesco Balanced-Risk Allocation FundFund FactsFund name Invesco Balanced-Risk Allocation Fund Invesco Global Asset Allocation team, AtlantaFund manager Lead, Scott Wolle, CFA CIO, Invesco Global Asset AllocationLaunch date September 2009Domicile LuxembourgLegal structure Sub-fund of Invesco Funds, SICAV with UCITS statusBase currency EURUnit type Accumulation and distributionReference index 60% MSCI World / 40% JPM Europe Government Bond Available Annual Minimum Unit type Ccy Initial charge ISIN codes share classes mgmt. fee investment A Acc EUR up to 5.25% 1.25% USD 1,500 LU0432616737 A Dist EUR up to 5.25% 1.25% USD 1,500 LU0482498176 A USD-hgd* Acc USD up to 5.25% 1.25% USD 1,500 LU0482498762 C Acc EUR up to 5.25% 0.75% USD 250,000 LU0432616810 C GBP-hgd* Acc GBP up to 5.25% 0.75% GBP 250,000 LU0432617032 C USD-hgd* Acc USD up to 5.25% 0.75% USD 250,000 LU0482498846 E Acc EUR up to 3.0928% 1.75% EUR 500 LU0432616901*Base currency hedged.29
  • 30. Important InformationThis marketing document is exclusively for use by Professional Clients and financial advisors in Continental Europe and is not forconsumer use. Data as at 30.04.12, unless otherwise stated. Please do not redistribute this document.This marketing document does not form part of any prospectus. Whilst great care has been taken to ensure that the information contained herein isaccurate, no responsibility can be accepted for any errors, mistakes or omissions or for any action taken in reliance thereon.Past performance is not an indication of future performance, provides no guarantee for the future and is not constant over time. The performancedata 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 oran award provides no guarantee for future performance results and is not constant over time.This document is not an invitation to subscribe for shares in the fund and is by way of information only. It is not intended to provide specificinvestment advice including, without limitation, investment, financial, legal, accounting or tax advice, or to make any recommendations about thesuitability of the fund(s) for the circumstances of any particular investor. You should take appropriate advice as to any securities, taxation or otherlegislation affecting you personally prior to investment. Asset management services are provided by Invesco in accordance with appropriate locallegislation and regulations. www.invescoeurope.comThe value of investments and the income from them can go down as well as up (this may partly be the result of exchange rate fluctuations ininvestments which have an exposure to foreign currencies) and investors may not get back the amount invested. Whilst the overall risk of the Fundintends to be consistent with that of a balanced portfolio of equity and debt securities, this may not be achieved. The Fund will make significant use offinancial derivatives for investment purposes in excess of the value of the portfolio that could lead to large fluctuations in the value of the Fund. Thefund uses derivatives to gain leverage which can potentially be up to three times the value of its net assets. The Fund will gain exposure tocommodities to diversify the risk of the fund. Commodities are generally considered to be high risk investments and may result in large fluctuations inthe value of the Fund. Debt instruments are exposed to credit risk which is the ability of the borrower to repay the interest and capital on theredemption date. If you are unsure of any of these risks please contact your advisor.Opinions and forecasts are subject to change without notice. For more information on our funds, please refer to the most up to date relevant fund andshare class-specific Key Investor Information Documents, the latest Annual or Semi Annual Reports and the latest Prospectus. This information isavailable using the contact details of the issuer and is without charge. The information is also available from our website www.invescoeurope.comThis document is issued in Switzerland by Invesco Asset Management (Schweiz) AG, Stockerstrasse 14, CH-8002 Zurich. Subscriptions of shares areonly accepted on the basis of the most up to date legal offering documents. Swiss professional clients should consider this document only inconnection with the relevant monthly fund fact sheet which contains further performance information. The legal offering documents (fund & shareclass specific Key Investor Information Document, prospectus, annual & semi-annual reports, articles and trustee deeds) are available free of chargeat our website www.invesco.ch and from the issuer. Paying agent for the funds registered for sale in Switzerland: BNP PARIBAS SECURITIESSERVICES, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002 Zurich.30

×