Invesco pan european_structured_equity_fund_for_citywire

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Invesco pan european_structured_equity_fund_for_citywire

  1. 1. Invesco Pan European Structured Equity FundHow low volatility equity strategies can help you squeeze more return out of equity allocations whilst taking less riskCITYWIRE Berlin 2011 presented by: Michael Fraikin Head of Portfolio Management and Thorsten Paarmann, CFA Senior Portfolio Manager Invesco Global Quantitative EquityThis presentation is exclusivelyfor use by professional clientsand financial advisors inContinental Europe and is not forretail client use. Please do notredistribute.
  2. 2. Table of contents1. The Case for Low Volatility Equities – Theory vs. Practice2. Investment Process – An innovative approach3. Performance – Consistent alphaAppendix2
  3. 3. 1. The Case for Low Volatility Equities –Theory vs. Practice
  4. 4. Portfolio Theory vs. Practice Efficient Frontier• Markowitz Theory: Higher Market Portfolio Return Market Index = well diversified equity portfolio Returns only achievable when taking higher risks Minimum Variance Portfolio = combination of equities with lowest possible risk - Low Volatility / Minimum Variance Portfolio inferior to market portfolio Risk• Practice: Invesco study on 60% risk-return relationship of Stoxx 600 members over 40% Annualised Return the period 2002 to 2010 20% - A negative regression line 0% shows that stocks with higher volatility do not -20% outperform lower -40% volatility stocks The slope of the regression line is negative! -60% 0% 10% 20% 30% 40% 50% 60% 70% 80% Annualised Volatility Source Bloomberg, Invesco Research, European equities members of the Stoxx 600 over the period 30.06.2002 to 30.06.2010 (8 years). Volatility is calculated as annualised standard deviation of monthly returns.4
  5. 5. Invesco’s stocks universe grouped by (historic) volatility 10 = least volatile 10% of universe; 1 = most volatile 10% of universe Volatility Deciles 2%• Lower volatility stocks generate equally attractive 0% performance as annualised relative performance higher volatility stocks -2% - taking higher risks is not -4% rewarded Europe World• Highest volatility stocks -6% underperform on average -8% 10 9 8 7 6 5 4 3 2 1 Source: Invesco Research Data from 12/1996 to 06/2011. 10 represents the 10% stocks with the lowest volatility. For illustrative purposes only. 5
  6. 6. Possible explanations for this “Volatility Anomaly”• Limited Arbitrage Opportunities — Leverage restrictions limit possibility to combine a low beta portfolio with leverage — Shorting potential of high volatility stocks is constrained: top volatility stocks tend to be small stocks which are costly to trade and where borrowing is limited• Lottery effect — Equities with higher volatility are able to produce higher returns and investors are willing to pay a premium for this possibility• Blind reliance on the theoretically assumed higher return for higher risk• Separation of allocation and selection — Strategic asset allocation is typically separated from asset/fund selection — High beta is a simple strategy for expected outperformance in an asset class6
  7. 7. Performance of European risk factors relative to the market average• A number of risk factors add value over the long term, -Momentum (investing in recent outperformers) -Attractive Valuation (earnings yield, dividend yield)• Volatility is the style factor with the worst relative performance -picking the most risky stocks is not a successful long term strategy. Source: Barra, Invesco Research Data from 12/1994 to 06/2011; logarithmic returns For illustrative purposes only. 7
  8. 8. The case for Low Volatility / Minimum Variance Investing• Growing interest in Low Volatility / Minimum Variance — MSCI launched Minimum Volatility Indices — Increasing number of offerings both in institutional but also retail products• Reasons for the surge in interest — Above index performance with less risk over longer periods  The idea that higher risk equals higher return seems discredited — Consistent with a desire to move away from cap weighted indices — Better suited in an absolute return context• Attractive strategy characteristics — Low correlation of active returns relative to traditional equity investments — Reduced drawdowns from an equity investment8
  9. 9. 2. Investment Process –An innovative approach
  10. 10. What makes Invesco’s process unique?• High alpha/high conviction investment strategy• Lower volatility of fund reduces drawdown risk• Diversification benefit from unique return pattern10
  11. 11. Pan European Structured Equity FundMoving away from a benchmark focus• “Best ideas portfolio” — Even stronger focus on the most attractive stocks1 — No longer allocation of unattractive index heavyweights1• Maximising impact of our core competence: stock selection — Higher tracking error vs. MSCI Europe ND due to more leeway in country, sector and industry weights• Strong risk management — Constrained portfolio volatility leading to a portfolio beta < 1 — We only take risks where we expect to be rewarded  technically speaking: portfolio optimisation against cash benchmark (similar to maximisation of Sharpe Ratio2)1 Based on Invesco’s stock attractiveness forecast.2 Sharpe Ratio: Excess Return over cash relative to volatility level to achieve that return.11
  12. 12. Philosophy We believe we can add value for our clients through the systematic application of fundamental and behavioral insights.12
  13. 13. Quantifying our insights: Stock Selection Model Overview Stock Selection Universe Earnings Management Concepts Price Trend Relative Value Momentum Action Are earnings improving What is the price What is management Are valuations or deteriorating? action telling us? doing? attractive? • Earnings Revisions • Price Momentum • Capital Allocation • Cash Flow Yield • Earnings Momentum • Business Cycle • Earnings Accruals • Earnings Yield • Revisions Against Reversal • Fundamental Health • Dividend Yield Factors1 Trend • Short-Term Reversal Score • Cash Yield • Sales Revisions • Volatility Jump • Liability Payback Horizon Forecasted ReturnFor illustrative purposes only1Not all factors are used in all regions and sub-models.Additional factors are used in specific sub-models and definitions may vary across regions.13
  14. 14. Engineering the Optimal Portfolio Stock Return Stock Risk Forecasts Forecasts Transaction Cost Optimization Portfolio Guidelines Forecast through GPMS1 & Constraints Final Review Portfolio1Global Portfolio Management SystemFor illustrative purposes only14
  15. 15. Invesco Pan European Structured Equity FundLargest sector weights 20,2% Health Care 11,9% 19,2% Consumer Staples 14,1% Telecommunication 12,7% Services 7,4% Portfolio 11,5% MSCI Europe Utilities 5,4% Consumer 9,0% Discretionary 8,0% 8,1% Financials 18,9% 0% 5% 10% 15% 20% 25% Source: Invesco, MSCI, BARRA; Data as at 30 September 2011. ‘MSCI Europe’ is MSCI Europe ND.15
  16. 16. 3. Performance –Consistent alpha
  17. 17. Invesco Pan European Structured Equity FundExcellent track record since change of strategy in 2006 Performance Fund vs. Benchmark 10% 60% 5.44% 1.10% 1.10% 0% 50%• Consistent -0.23% -1.27% performance -10% -7.30% -10.26% -5.23% -5.23% 40% over all periods -15.61% -20% 30% Volatility Fund vs. Benchmark -30% 18.72% 17.74% 17.74% 20%• Portfolio 14.03% 14.46% 15.42% 15.42% 12.19% significantly less -40% 10% volatile than benchmark -50% 0% YTD 1 year 3 years * 5 years * since 29/09/06 * Invesco Pan European Structured Fund A MSCI Europe NDR Volatility Fund (rhs) Volatility MSCI Europe (rhs)Source: Invesco, MSCI. Data as at 30 September 2011. ‘MSCI Europe NDR’ is MSCI Europe ND. Fund performance: Mid tomid, Gross income reinvested, net of fees (A-Shares). Past performance is not an indication of future performance,provides no guarantee for the future and is not constant over time. Volatility is calculated on the basis of monthly data andis not shown YTD as respective figures have therefore little meaning. *annualised under current strategy17
  18. 18. Invesco Pan European Structured Equity Fund Attribution analysis year to date 2011, A-Shares• 8% alpha net of fees Contribution Analysis (Return in % ) - portfolio volatility Analysis Period: January until September 2011 (15.10%) significantly 9 months below benchmark Fund: Pan European Structured Equity (18.62%) Benchmark: MSCI Europe ndr* Fonds -7.29 Return (%) - tracking error 5.52% *net dividend reinvested 15.10 Risk (%)*• Main performance Active Benchmark drivers 8.32 -15.61 5.52 18.62 - Low volatility positive - Country/sector positions residual of stock selection Volatility Countries & Stock Sectors Style Factors (Beta) Currencies Selection - Style factors: smaller cap 4.26 -1.09 1.71 -0.68 4.12 stock exposure hurt 2.00 1.96 2.16 2.59 1.12 - Stock selection strong Source: Invesco, MSCI, BARRA; Data as at 30 September 2011. The above information is based on analysis using the BARRA Performance Analyst. Performance figures are annualised and are shown EUR, inclusive of net reinvested income and net of the annual management charge and all other fund expenses (A-Shares). Past performance is not an indication of future performance, provides no guarantee for the future and is not constant over time. *Risk is measured in standard deviations. 18
  19. 19. Performance behaviour of the fund: Bear Market “Normal” Market Bull Market Monthly index performance <-3% -3% - +3% > +3% Average monthly net alpha 1.8% 0.6% -0.9% 6% 35% 3% 30%• Strongest alpha contribution when 0% 25% investor needs it the -3% 20% most, i.e. to reduce drawdowns in bear -6% active performance (left hand scale) 15% markets -9% Perf. MSCI (right hand scale) 10%• Some 60 bps/month positive alpha net of -12% 5% fees in normal -15% 0% market environment -18% -5%• In strong bull markets portfolio -21% -10% tends not to fully -24% -15% participate in rally -13% -9% -4% -3% -2% -1% 0% 1% 2% 3% 4% Source: Invesco, MSCI; For illustrative purposes only. Source: Invesco. Data as at 30 September 2011. ‘MSCI’ is MSCI Europe ND. Fund performance (A Shares): Mid to mid, Gross income reinvested, net of fees. Past performance is not an indication of future performance, provides no guarantee for the future and is not constant over time. 19
  20. 20. Reasons to consider investing in theInvesco Pan European Structured Equity Fund• High alpha/high conviction investment strategy — ‘Best ideas portfolio’: High alpha potential from stock selection due to unconstrained optimisation approach — built on 25+ years of stock selection process using proven fundamental and behavioural concepts• Lower volatility of fund reduces drawdown risk — More efficient use of available risk budget without compromising the return potential• Diversification benefit from unique return pattern — Minimum variance approach combined with quantitative stock selection results in outperformance pattern that differs from those of traditional managers20
  21. 21. Fund facts Invesco Pan European Structured Equity Fund Fund Name Invesco Pan European Structured Equity Fund Launch Date June 2002 Fund Manager Michael Fraikin, Thorsten Paarmann, CFA Investment Team Invesco Global Quantitative Equity Domicile Luxembourg Legal Status Luxembourg SICAV with UCITS III status Fund Currency EUR Unit Types Accumulation Initial Fee (A) and (C) 5.25%, (E) 3.0928% Management Fees (A) 1.3% p.a., (C) 0.8% p.a., (E) 2.25% p.a. Minimum Investment (A) USD 1,500; (C) USD 250,000; (E) EUR 500 Reference Index MSCI Europe ND ISIN (A) LU0119750205; (C) LU0119753134; (E) LU0119753308 S&P Rating AA Morningstar Rating Source: Invesco, as at 30 September 2011. Any reference to a ranking, rating or an award provides no guarantee for futureperformance results. 21
  22. 22. Appendix:
  23. 23. Global Quantitative EquityTEAM Bernhard Langer, CFA, CIO, Global Quantitative Equity Research Benefits of Group Structure: Bob D’ Amore Dr. Stephan Holtmeier Zhanar Omarova Karl Georg Bayer Satoshi Ikeda Sergey Protchenko • All portfolios are Ralph Coutant, CFA Jochen Jenkner Ruth Rodriguez team-managed Bartholomaeus Ende Dr. Matthias Kerling Peter Secakusuma Anna Gulko, CFA Dr. Jens Langewand Dr. Margit Steiner • Functional team Dr. Martin Hennecke Edward Leung, PhD Andrew Waisburd, PhD approach that Anne-Marie Hofmann Dr. Gangolf Mittelhäußer permits us to focus on what we do best Portfolio Management • Well rounded team of over 40 Manuela von Ditfurth Anthony Munchak, CFA Daniel Tsai, CFA experienced Uwe Draeger Glen Murphy, CFA Anne Unflat Michael Fraikin Robert Nakouzi Alexander Tavernaro, CFA professionals at Nils Huter Francis Orlando, CFA Alexander Uhlmann, CFA five locations: Dr. Martin Kolrep Thorsten Paarmann, CFA Donna Wilson - Frankfurt Helena Korczok-Nestorov Nicole Schnuderl Hiroaki Yamazaki - New York Ken Masse, CFA Hiroshi Tanizawa - Boston - Melbourne - Tokyo Portfolio Management Associates Jennifer An Karen Buckley Jan Kurras Karin Arnefors Julian Keuerleber Daveka PersaudSource: Invesco. As of September 30, 2011.23
  24. 24. Global Quantitative EquitySTRATEGIES • Managing over US$20 billion • Experienced team of over 40 investment professionals • Global research agenda to continually improve forecasts • Unified approach to stock return forecasting and portfolio constructionA Rich History of Development1983 1991 1992 1995 1996 1999 2000 2001 2002 2003 2005 2006 2007 2008 2009 2010U.S. Financial U.S. Equitized U.S. European Eurobloc Global Absolute Global European/ European Directional Global U.S. EmergingStructured Futures Small U.S. Enhanced Structured Structured Structured Return Balanced Global Market Long-Short Market Unconstrained MarketsCore Equity Cap Market Index Core Core Core (multi- Solutions Unconstrained Neutral (130/30) Neutral Core; Neutral strategy U.S. Mkt hedge fund Neutral approach)Note: This is a representative list of Global Quantitative Equity strategies and is not inclusive of all products offered. BalancedSolutions mandates are managed in conjunction with Invesco’s Global Asset Allocation investment team.Source: Invesco. As of June 30, 2011.24
  25. 25. Key portfolio characteristics• Well diversified portfolio — Maximum absolute position1 2.0% — Maximum industry and sector weight1 25.0%• Universe of largest and most liquid European equities — Minimum requirements on market capitalisation and free float — Holdings always monitored relative to ADV (average daily trading volume)• Targeted absolute risk below equity market — Portfolio Beta typically below 1• Always 100% invested in European equities — No strategic cash positions — No short positions 1 At rebalancing25
  26. 26. Information Coefficients*Positive prognostic ability over last four quarters 0,10 Earnings Momentum 0,05 Price Trend 0,00 Management Action -0,05 Relative Value -0,10 2003 2004 2005 2006 2007 2008 2009 2010 last 6 months Q4 2010 Q1 2011 Q2 2011 Q3 2011 Earnings Momentum 0.05 0.01 0.13 0.03 Price Trend 0.03 0.02 0.08 0.00 Management & Quality 0.06 0.02 -0.05 0.09 Relative Value 0.05 -0.03 -0.02 -0.06 Alpha 0.08 0.01 0.05 0.03 Source: Invesco, as at: 30.09.2011 *Information Coefficients (ICs): correlation between our return forecasts and the actual returns the stocks achieved over the last month.26
  27. 27. European Quantitative UnconstrainedComposite returnsPercent 40 31,6 31,4 European Unconstrained 30 25,9 19,6 20 17,2 MSCI Europe ND 1 ,1 1 10 2,8 2,7 0 -6,2 -10 -20 -15,6 -30 -40 -35,2 -43,7 -50 YTD 2011 2010 2009 2008 2007 2006 Annualized Periods Inception Through September 2011 YTD 1 year 3 years 5 years 12/31/05 European Unconstrained -6.19% 1.36% 5.27% 0.00% 3.41% MSCI Europe ND -15.62% -10.26% -1.27% -5.23% -2.71% Excess Return 9.42% 11.62% 6.54% 5.23% 6.12%Source: Invesco, MSCI; Data gross of fees, as of 30/09/2011. Past performance is not an indication of future performance,provides no guarantee for the future and is not constant over time. Please see important information on GIPS in the appendix.27
  28. 28. Invesco European Quantitative Unconstrained Composite Schedule of Investment Performance Gross Rate of Net Rate of Benchmark Composite 3- Benchmark Number Composite Total Firm Composite Return Return Return Yr St Dev 3-Yr St Dev of Assets Assets (1) Dispersion (%) (%) (%) (%) (%) Portfolios (EUR millions) (EUR billions) (%)2010 17,15 16,28 11,10 17,47 21,06 1 392 354,3 n/a2009 25,94 25,00 31,60 17,23 20,38 2 271 207,8 n/a2008 (35,16) (35,65) (43,65) 15,92 16,40 2 251 183,1 n/a2007 2,81 2,04 2,69 n/a n/a 2 218 224,8 n/a2006 31,43 30,45 19,61 n/a n/a 2 52 184,9 n/a Annualized Compound Rates of Return Ending December 31, 2010:1 Year 17,15 16,28 11,102 Years 21,47 20,56 20,913 Years (1,47) (2,20) (6,25)4 Years (0,42) (1,16) (4,09)Since Inception (31/12/2005) 5,27 4,48 0,24 Invesco Worldwide claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Invesco Worldwide has been independently verified for the periods 1st January 2003 thru 31st December 2009. The legacy firms that constitute Invesco Worldwide have been verified since 2001 or earlier. The verification reports are available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. Notes:1 Invesco Worldwide (“The Firm”) manages a broad array of investment strategies around the world. The Firm comprises U.S.-based Invesco Advisers, Inc. and all wholly owned Invesco firms outside of North America. All entities within the Firm are directly or indirectly owned by Invesco Ltd. GIPS-compliant firms whose assets are managed by subsidiaries of Invesco Ltd. are Invesco Trimark Ltd. and Atlantic Trust. Invesco Senior Secured Management, Inc. Invesco Private Capital, Inc. and Invesco PowerShares Capital Management LLC are also affiliates of the Firm. Each is an SEC-registered investment adviser and is marketed as a separate entity. Invesco Great Wall Fund Management Co. Ltd (IGW) is a fund management company established under China Securities Regulatory Commission’s approval. Their assets are excluded from total Firm assets. On Dec. 31, 2009, Invesco Aim Advisors, Inc. (AIM), Invesco AIM Capital Management, Inc. (ACM), Invesco Aim Private Asset Management, Inc. (APAM) and Invesco Global Asset Management (N.A.), Inc. merged into Invesco Institutional (N.A.), Inc., which was then renamed Invesco Advisers, Inc. Prior to 2010, AIM, ACM and APAM were part of separate GIPS firms and not included in the Firm. All Firm verifications have been completed through Dec. 31, 2009. On June 1, 2010, Invesco acquired Morgan Stanley Investment Management’s (MSIM) retail asset business, including Van Kampen Investments. Through this transaction, Invesco acquired approximately $119 billion in assets under management. Prior to the acquisition, MSIM was GIPS compliant and verified by an independent verifier through Dec. 31, 2008. Assets under management prior to 2010 have not been restated to reflect either the above-referenced investment adviser merger or the MSIM acquisition. Composite history and Firm assets prior to Jan. 1, 2010, are those of its respective components.2 The European Quantitative Unconstrained strategy aims to provide adequate long term total returns in Euro at a risk smaller than that of the equity market. In the strategy the expected return of an equity portfolio is optimized versus the expected risk using GQE forecasts of stock attractiveness. Whilst absolute limits on regions, countries, industry and stock weights exist, the strategy is likely to exhibit risk substantially below that of a global equity index and a different return pattern. Portfolios are hedged into the base currency. 28
  29. 29. Invesco European Quantitative Unconstrained Composite Schedule of Investment Performance3 The Composite returns are benchmarked to the MSCI Europe (Net) Index. The benchmark is used for comparative purposes only and generally reflects the risk or investment style of the product. Investments made by the Firm for the portfolios it manages according to respective strategies may differ significantly in terms of security holdings, industry weightings, and asset allocation from those of the benchmark. Accordingly, investment results and volatility will differ from those of the benchmark.4 Stock index futures may be used to equitize cash balances as permitted by the client. Currency forwards are used to hedge foreign exchange risk exposure. Leverage is not permitted.5 Valuations and portfolio total returns are computed and stated in Euro. The firm consistently values all portfolios each day on a trade date basis. Portfolio level returns are calculated as time-weighted total returns on daily basis. Accrual accounting is used for all interest and dividend income. Past performance is not an indication of future results.6 Carve-outs from multi-asset class portfolios are included within this composite. Cash is allocated to the constituent equity segment carve-out returns to arrive at a total return for each portfolio. Prior to 31 December 2006, the cash allocation was based on 12 month moving average of representative equity-only portfolios managed according to the same strategy. Effective 1 January 2007, carve-out returns are calculated by allocating cash according to the target cash position for the strategy. As of 31 December 2006, 2007, 2008, 2009, carve-outs comprised 100% of the composite.7 Composite dispersion is measured by the standard deviation across asset-weighted portfolio returns represented within the composite for the full year.8 The significant cash flow policy for this composite requires the temporary removal of portfolios for the period impacted when external cash flows equal or exceed 200% for inflows or 67% for outflows. This policy applies to all Frankfurt-managed structured product composites except single-account composites where the performance track record would otherwise be interrupted. Prior to 1 January 2007 portfolios were removed from composites when external cash flows were 10% or more.9 Gross-of-fee performance results are presented before management and custodial fees but after all trading commissions and withholding taxes on dividends, interest and capital gains, when applicable. Net-of-fee performance results are calculated by subtracting the highest tier of our published fee schedule for the product from the monthly returns. The management fee schedule is as follows: 75 basis points on the first €25 million 70 basis points on the next €50 million 55 basis points on the next €125 million 40 basis points on the next €300 million Negotiable thereafter.10 The minimum portfolio size for the Composite is €800,000.11 The composite creation date is July 31, 2006.12 As of September 30, 2010, the European Unconstrained Optimization Equity composite was renamed the European Quantitative Unconstrained composite.13 Foreign currency exchange rates for calculation of the composite and benchmark are based on the WM/Reuters Closing Spot Rates TM that are fixed at approximately 4:00 p.m. London time.14 The benchmarks is net of withholding tax based the maximum tax rate applicable to institutional investors. The composite returns are net of withholding taxes based on actual withholding taxes deducted from the individual portfolios in the composite. Withholding taxes deducted from portfolios in the composite may vary depending on domicile of the individual clients.15 A complete list of composite descriptions is available upon request. Polices for valuing portfolios, calculating performance, and preparing compliant presentations is available upon request. 29
  30. 30. Important informationThis document is exclusively for use by professional clients and financial advisors in Continental Europe and is not for consumer use. Dataas at 30 September 2011, unless otherwise stated. Please do not redistribute this document.The information provided on the investments and investment strategy (including current investment themes, the research and investment process, andportfolio characteristics, weightings, and allocation) represents the views of the portfolio manager at the time this material was completed, and is subject tochange without notice.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. Opinions and forecasts aresubject to change without notice. The value of investments and the income from them can go down as well as up (this may partly be the result of exchangerate fluctuations in investments which have an exposure to foreign currencies) and investors may not get back the amount invested. Past performance is notan indication of future performance, provides no guarantee for the future and is not constant over time. The performance data shown does not take accountof 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 forfuture performance results and is not constant over time. There is potential for increased volatility in emerging stock markets, and only a modest proportionof investable wealth should be invested in them. Investing in funds focused on specific themes, particular areas of the market or small capitalisationcompanies may increase the risk associated with them due to the volatility and/or the concentrated nature of these investments. Investors should read thefund simplified and full prospectuses for specific risk factors and further information. This document is not an invitation to subscribe for shares in the fundand is by way of information only. It is not intended to provide specific investment advice including, without limitation, investment, financial, legal,accounting or tax advice, or to make any recommendations about the suitability of the fund(s) for the circumstances of any particular investor. You shouldtake appropriate advice as to any securities, taxation or other legislation affecting you personally prior to investment. Asset management services areprovided by Invesco in accordance with appropriate local legislation and regulations. www.invescoeurope.comAdditional information for investment professionals in Germany, Austria and Switzerland:This document is issued in Germany by Invesco Asset Management Deutschland GmbH regulated by Bundesanstalt für Finanzdienstleistungsaufsicht. Thisdocument 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 current fund prospectus. Swiss investment professionals should consider this document only inconnection with the relevant monthly fund fact sheet which contains further performance information. Prospectuses and reports are available free of chargeat Invesco Asset Management Deutschland GmbH, An der Welle 5, D-60322 Frankfurt am Main, Invesco Asset Management Österreich GmbH,Rotenturmstrasse 16-18, A-1010 Vienna, and Invesco Asset Management (Schweiz) AG, Stockerstrasse 14, CH-8002 Zurich. Paying agent for the fund inSwitzerland: BNP Paribas Securities Services S.A., Paris, Zurich Branch, Selnaustrasse 16, CH-8022 Zurich.30

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