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Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
Jeff taylor citywire germany june 2012 final
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Jeff taylor citywire germany june 2012 final

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  • 1. From macro-driven markets to stockspecifics:What Europe’s equities have to offerPresented by:Jeffrey TaylorHead of European Equities,Invesco Perpetual, Henley21st and 22nd June 2012This presentation is for Professional Clients inContinental Europe only and is not for consumer use.
  • 2. European Equities: Fear, loathing & opportunities • Markets have been driven almost entirely by macro worries and „tail risks • Eurozone crisis resolution: slow, chaotic with knock-on effects on the economy • Greece has unsettled markets again, but sorting out the Eurozone favourably is still the most likely outcome: - German economic self interest - LTROs show meaningful policy response is probable - Significant reform in the periphery49522/EH/Pan Euro Equity French Fly-in/Jun12 - Not all is bad in the European economy. • Markets driven by fear reach extremes: „safe havens‟ become dangerous, „risk‟ becomes attractive • Buying under-valued stocks is the best way to make money: time to look at out-of-favour stocks, sectors and countries 2
  • 3. Markets driven by fear reach extreme conclusions Dutch long bond yields at a 500 year low Eurostoxx 50 is 3 standard deviations „oversold‟ relative to the US S&P 500 20 Netherlands 10-year Government Bond Yield 4.5 4.2 3.9 15 3.6 3.3 10 3.049522/EH/Pan Euro Equity French Fly-in/Jun12 2.7 5 2.4 2.1 0 1.8 89 92 95 98 01 04 07 10 13 1517 1822 1842 1862 1882 1902 1922 1943 1964 1984 2004 Eurostoxx 50 relative to S&P 500 (dollar terms) Source for both charts: BofA Merrill Lynch Global Equity Strategy, Global Financial Data, Bloomberg Left hand chart: Annual data prior to 1814, monthly thereafter. No data available during 1577-1599; 1700-1746; 1748-1761; 1763-1797; 1977-1813 3
  • 4. Markets driven by fear reach extreme conclusions Spain vs. Germany: two very international markets, yet two very different valuations. Nationality of listing has distracted the market from other fundamentals. Shiller PE (10 year historic earnings) of the Spanish Geographical split of 2010 sales of DAX and IBEX IBEX relative to the German DAX constituents Home country Rest of Europe Americas Asia/ Pacific RoW/ Unspecified 1.6 100% 7.3% 12.4% 90% 10.4% 0.2% 1.4 80% 17.9% 26.8% 1.2 70%49522/EH/Pan Euro Equity French Fly-in/Jun12 60% 1.0 50% 35.7% 26.0% 40% 0.8 30% 0.6 20% 34.6% 28.7% 10% 0.4 3/97 4/98 5/99 6/00 7/01 8/02 9/03 10/0411/05 1/07 2/08 3/09 4/10 5/11 0% DAX IBEX Shiller PE of Spain / Germany Source: Deutsche Bank as at 14 May 2012 5
  • 5. Fear, loathing and investor positioning: global investors have seldom been less interested The engagement by global investors in European equities is already extremely low: a good starting point for the future Global asset allocators over/underweight positions in Eurozone equities & performance of Eurozone equities –v- global equities 11/5/12 60 1 0 5 1 5 4 50 1 0 4 40 1 5 3 30 1 0 3 20 1 5 249522/EH/Pan Euro Equity French Fly-in/Jun12 10 1 0 2 0 1 5 1 -10 1 0 1 -20 1 5 0 -30 1 0 0 -40 -50 95 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 1 0 0 2 1 0 1 2 1 0 2 Net % O weight Eurozone Potentially Underowned Eurozone Rel. to World(R.H.SCALE) Potentially O erowned v Source: DATASTREAM Source: BofA Merrill Lynch Global Fund Manager Survey. Data as at 16 May 2012. Past performance is not a guide to future returns. 6
  • 6. German economic self interest and recent actions by the ECB suggest it is wrong to underestimate the durability of the Euro Major components of Germany‟s €192bn* trade balance in 2011 • ECB under Draghi clearly more active as witnessed Exports Trade balance % of total trade by 3 year unlimited LTRO Country (€bn) (€bn) balance operations, greater France 101.6 35.1 18.3 flexibility on collateral USA 73.2 25.2 13.1 • QE not allowed for the Netherlands 69.3 -12.9 -6.7 monetary financing of UK 65.3 20.4 10.6 states, but is allowed as Italy 62.1 13.8 7.2 a monetary policy tool49522/EH/Pan Euro Equity French Fly-in/Jun12 Austria 57.9 20.2 10.5 • EFSF, ESM, SMP tools China 64.8 -14.4 -7.5 Belgium 47.0 8.7 4.5 • Greek € exit would raise Poland 43.5 11.1 5.8 spectre of „contagion‟ in the periphery: expect Spain 34.9 12.3 6.4 significant policy Czech Rep. 30.6 -2.4 -1.2 response to counter it Russia 34.4 -6.2 -3.2 Source: Credit Suisse, Statistisches Bundesamt, 2011 data latest available. *Equivalent of 7.8% of 2011 GDP. 7
  • 7. Actions are being taken to improve the functioning of peripheral economies long term… Spain Italy • Pension reform – retirement age • Pension reform – retirement at 67 increased to 67 years and linked to life expectancy • Labour market reform – reduced • Labour market – reform Article 18 collective bargaining, increased flexibility to tackle gap between young and old, to adapt to cycle, reduced bureaucracy to small and large companies start-up businesses • Balanced budget – now voted into • Budgetary & financial stability law – law balanced budget enshrined in constitution,49522/EH/Pan Euro Equity French Fly-in/Jun12 • Liberalisation – pharmacies, taxis, much tighter control over regional govt. professional services finances • Privatisation/competition – public • Banking reforms – clean-up of real tendering of contracts for electricity, estate books, recapitalisation, gas, refuse collection consolidation • Energy reform – regulatory certainty, decrease reliance on imports, lower prices Source: Spain – Fidentiis, meetings with Ministry of the Economy, ICO; Italy – meetings with Banca d‟Italia, Ministry of Finance. As of 16 May 2012. 9
  • 8. …and meanwhile, Spain is not as hopeless as the media like to suggest Spain: Not just a real estate crisis. Strong export growth (exports at 31% of GDP in Q4 2011), better unit labour cost trends, true unemployment levels well below the official rate of 25%, plus a fast-track programme to pay arrears owed to suppliers by regional governments worth 3% of GDP Exports of Goods and Services Nominal Unit Labour Costs (Index 2005=100) (Index 2005=100)49522/EH/Pan Euro Equity French Fly-in/Jun12 Source: Tesoro Público, Eurostat, Fidentiis, ICO as at 4 May 2012. 10
  • 9. € crisis cloud has a silver lining: a weaker exchange rate boosts future Eurozone growth Estimated impact (%) of past changes in the trade-weighted € exchange rate on annual GDP growth, as achieved in the past and as expected in future assuming a € unchanged from the current level 1.0 0.549522/EH/Pan Euro Equity French Fly-in/Jun12 % more/less 0.0 GDP growth -0.5 -1.0 -1.5 * * * 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: OECD, Credit Suisse as at 8 May 2012. *2012-2014 figures are estimates. 12
  • 10. Valuation is the key to future returns Starting point is important... 25% 10 Year Annualised Nominal Return 20% 15% R² = 0.811 10%49522/EH/Pan Euro Equity French Fly-in/Jun12 5% 0% -5% 10 15 20 25 30 35 40 45 50 MSCI Europe - Cyclically adjusted PE Source: Citi as at 8 March 2012. Each square on this chart shows returns over the following decade from a range of cyclically adjusted Pes. The period covered is since 1980 . 14
  • 11. What are markets assuming? Given austerity and de-leveraging, market implying a decline in ROE going forward… 4.5 18% 4.0 16% 14% 3.5 12% 3.0 10% 2.5 8%49522/EH/Pan Euro Equity French Fly-in/Jun12 2.0 6% 1.5 4% 1.0 2% 88 90 92 94 96 98 00 02 04 06 08 10 Price to Book ratio (X) Return on equity (RHS) Source: Goldman Sachs as at 21 March 2012. 15
  • 12. What are markets assuming? …implying a significant reduction in margins from current levels, assuming more „normal‟ market conditions… 12 10 8 649522/EH/Pan Euro Equity French Fly-in/Jun12 4 2 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 Current net profit margin (%) Implied net profit margin in 10 years time (%) Source: Goldman Sachs as at 21 March 2012. (1) Assuming ERP of 3.5% (the long term historic average), long term real sales growth of 2.5% per annum (compared to historical average of 4% per annum) and 12 month forward inflation expectations. 16
  • 13. What are markets assuming? …despite rising profit margins and ROE recovering strongly since 2008/2009… Europe excl. financials: Net profit margin Europe excl. financials: Return on equity 10 9 20 18 8 16 7 14 6 12 5 1049522/EH/Pan Euro Equity French Fly-in/Jun12 4 8 3 6 2 4 1 2 0 0 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 Profit margin (%) Linear (Profit margin, %) ROE (%) Linear (ROE, %) Source: Goldman Sachs as at 21 March 2012 . 17
  • 14. European dividend yields currently attractive relative to other asset classes (%) 5 Equities Corp Bonds Government Bonds Money Markets 4.3 4 3.8 3.6 3.2 3 2.5 2 2.1 1.749522/EH/Pan Euro Equity French Fly-in/Jun12 1 0 European div US div yield AA € corp bond German 10 yr US 10yr bond German 3m US 3m rates yield yield Bund yield yield rates Current (%) 10-year average (%) Source: UBS as at 31 March 2012. 18
  • 15. What do we like? How are our funds positioned? We are active “long-only” investors, who are driven by underlying valuations of stocks, not by labels like “value” or “growth”. Stock-picking is thus very important, but we also look at macro-economic factors when building portfolios At present we are positioned for a slow growth environment, but the likely resolution of the Euro crisis means that we do not wish to be too defensively invested: defensive stocks can be too expensive, cyclical/financial stocks can be too cheap49522/EH/Pan Euro Equity French Fly-in/Jun12 Favoured areas at present include: Defensives: pharmaceuticals, service industries with steady growth, selected telecoms, motorway stocks – not most consumer staples Industrials: aerospace, transport, paper – not most capital goods Financials: insurance, selected banks Source: Invesco as at 29th May 2012, stocks classified as Industrials by MSCI Europe. For illustrative purposes only. 19
  • 16. A defensive sector we like Healthcare: Cheap, cash flow generative and with more growth than the consensus assumes MSCI Europe Healthcare – FCF Yield and Dividend Yield (%) 10 9 8 7 6 5 449522/EH/Pan Euro Equity French Fly-in/Jun12 3 2 1 0 MS Europe Health Care - FCF Yield (%) MS Europe Health Care - Dividend Yield (%) Source: Nomura as at 23 April 2012. 20
  • 17. Recent market dislocation has produced opportunities Repsol € Repsol Repsol / MSCI EMU (rhs) Index • International energy company 26 0.35 headquartered in Spain 0.33 • Expropriation of Argentinian subsidiary 24 0.31 YPF hit the share this spring, but share 22 price decline has substantially surpassed 0.29 what would be justified by this alone 0.27 20 • Spanish listing and status as major 0.25 18 component of IBEX35 has hit share 0.2349522/EH/Pan Euro Equity French Fly-in/Jun12 • Repsol (ex YPF) offers significantly 16 0.21 faster growth than the industry 0.19 average, yet the share price implies 14 0.17 falling returns and no asset growth 12 0.15 • Position increased Jul-10 Jul-11 Jan-11 Jan-10 Jan-12 Mar-10 May-10 Mar-11 May-11 Mar-12 May-12 Nov-10 Nov-11 Sep-10 Sep-11 Source: Invesco Perpetual, Datastream as at 15 May 2012 . For illustrative purposes only. 21
  • 18. Recent market dislocation has produced opportunities ING € ING ING / MSCI EMU (rhs) Index • International banking and insurance 10 0.1 group active in Europe, the Americas and Asia 0.095 9 • Split of the bank and insurance 0.09 underway, continuing disposals of major 8 parts of the group to come (Asia) 0.085 • Core Benelux banking franchise is well- 7 0.08 capitalised and well-funded with a relatively conservative asset mix49522/EH/Pan Euro Equity French Fly-in/Jun12 0.075 6 0.07 • Share has suffered disproportionately 5 due to some exposure to peripheral 0.065 bonds and ‟risk off‟ market mood 4 0.06 • Share price implies only a low single- Jul-10 Jul-11 Jan-10 Jan-11 Jan-12 Mar-10 May-10 Mar-11 May-11 Mar-12 May-12 Nov-10 Nov-11 Sep-10 Sep-11 digit PE on bank, P/TB of 0.4x • Position increased Source: Invesco Perpetual, Datastream as at 15 May 2012 . For illustrative purposes only. 22
  • 19. What do we like? UK consumer selectively becoming more interesting N Brown – Absolute & relative to MSCI Europe N Brown N Brown/MSCI Europe (RHS) N Brown plc 320 • Mail order/internet retailer of „outsize‟ 3.7 clothing 300 • Leading position in a growth market 3.5 Share price (p) 280 3.3 • Large family holding results in prudent long term management 3.1 260 • Should benefit from pressure easing on 2.9 UK households into 201249522/EH/Pan Euro Equity French Fly-in/Jun12 240 2.7 • …and also from lower cotton prices 220 • Attractive valuation for a company with 2.5 growth opportunities 200 2.3 (PE 10x Yield 5%) Jul-10 Jul-11 Sep-10 Sep-11 Jan-10 Jan-11 Jan-12 Mar-11 Mar-10 May-10 May-11 Mar-12 Nov-10 Nov-11 Source: Datastream as at 20 March 2012. For illustrative purposes only . 23
  • 20. What are we avoiding ? Expensive defensives – eg. most consumer staples Nestlé: market prices in ever higher returns49522/EH/Pan Euro Equity French Fly-in/Jun12 Novartis: share price would need an improbable collapse of returns to be justified Source: HOLT ValueSearch Credit Suisse as at 16 May 2012. For illustrative purposes only. 24
  • 21. What are we avoiding? Businesses facing challenges European Utilities: Net debt to EBITDA and FCF to dividend cover (x) 3.5 6 3.0 5 4 2.5 3 2.0 2 1.5 149522/EH/Pan Euro Equity French Fly-in/Jun12 1.0 0 0.5 -1 0.0 -2 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 FW Europe Gas Water & Utiliti - Debt/EBITDA (x) FW Europe Gas Water & Utiliti - FCF/Dividend Cover (X) RHS Source: Nomura as at 23 April 2012. 25
  • 22. What are we avoiding? Cyclicals with margin and multiple risk Atlas Copco & LVMH relative to MSCI Europe LVMH / MSCI Europe Atlas Copco / MSCI Europe • Certain cyclical companies do not 0.15 discount a downturn 0.13 • Relative performance at all time highs, growth expectations too 0.11 ambitious and peak margins expected to remain 0.09 • We are zero weighted in names like49522/EH/Pan Euro Equity French Fly-in/Jun12 LVMH and Atlas Copco 0.07 0.05 0.03 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 May-10 May-07 May-08 May-09 May-11 May-12 Sep-11 Sep-07 Sep-08 Sep-09 Sep-10 Source: Datastream 16 May 2012. Rebased to 100 as at January 2007. For illustrative purposes only . 26
  • 23. Portfolio data
  • 24. Invesco Pan European Equity Fund Top 10 holdings Stock % in fund Novartis 4.61 Roche 3.59 BT 2.79 Safran 2.55 UBS 2.5049522/EH/Pan Euro Equity French Fly-in/Jun12 Michelin 2.38 Daimler 2.30 GlaxoSmithKline 2.29 UPM-Kymmene 2.27 Obrascon Huarte Lain 2.21 Source: Invesco Perpetual as at 30 April 2012. There is no guarantee that the securities mentioned will be held by this fund in the future. Portfolio characteristics are subject to change and are not buy/sell recommendations. 28
  • 25. Invesco Pan European Equity Fund Top 10 active holdings1 Stock % overweight Novartis 2.64 Safran 2.45 BT 2.39 Obrascon Huarte Lain 2.21 Michelin 2.1849522/EH/Pan Euro Equity French Fly-in/Jun12 UPM-Kymmene 2.17 Reed Elsevier 1.98 Deutsche Boerse 1.93 SBM Offshore 1.85 EADS 1.83 Source: Invesco Perpetual as at 30 April 2012. 1Relative to MSCI Europe ND. There is no guarantee that the securities mentioned will be held by this fund in the future. Portfolio characteristics are subject to change and are not buy/sell recommendations 29
  • 26. Invesco Pan European Equity Fund Active sector weightings (%)1 Industrials 10.02 Consumer Discretionary 3.75 Financials 1.68 Health Care 1.44 Information Technology 0.48 Telecommunication Services -0.8949522/EH/Pan Euro Equity French Fly-in/Jun12 Materials -3.24 Energy -3.81 Utilities -4.61 Consumer Staples -6.03 -8 -6 -4 -2 0 2 4 6 8 10 12 Source: Invesco as at 30 April 2012. 1 Relative to MSCI Europe ND. Portfolio characteristics are subject to change. 30
  • 27. Invesco Pan European Equity Fund Active country weightings (%)1 Netherlands 7.90 Spain 4.89 Finland 2.61 Ireland 2.28 Portugal 1.42 Norway 0.79 Greece -0.13 Austria -0.39 Belgium -1.26 Denmark49522/EH/Pan Euro Equity French Fly-in/Jun12 -1.84 Sweden -1.88 Italy -2.13 Switzerland -2.60 United Kingdom -3.09 France -3.69 Germany -4.06 -6 -4 -2 0 2 4 6 8 10 Source: Invesco as at 30 April 2012. 1 Relative to MSCI Europe ND. Portfolio characteristics are subject to change. 31
  • 28. Invesco Pan European Equity Fund Gross performance (%) Calendar year returns (€) 2004 2005 2006 2007 2008 2009 2010 2011 Invesco Pan European Equity Fund 18.46 28.32 25.38 0.21 -41.08 36.80 17.00 -6.77 MSCI Europe (NRI) 12.18 26.09 19.61 2.69 -43.65 31.60 11.10 -8.08 Out/underperformance +6.28 +2.23 +5.77 -2.48 +2.57 +5.20 +5.90 +1.31 Annualised returns (€) YTD 1 year 3 years 5 years49522/EH/Pan Euro Equity French Fly-in/Jun12 Invesco Pan European Equity Fund 8.32 -4.67 17.15 -2.25 MSCI Europe (NRI) 6.05 -6.24 11.75 -5.04 Out/underperformance +2.27 +1.57 +5.4 +2.79 Past performance is not a guide to future returns. Source: Invesco Perpetual as at 30 April 2012. Fund performance figures are shown in euros on a mid-to-mid basis, inclusive of reinvested income and gross of the annual management charge and all other fund expenses. The figures do not reflect the entry charge paid by individual investors. Benchmark figures are total return, in euros. John Surplice and Martin Walker took over management of this fund in July 2003. 32
  • 29. Invesco Pan European Equity Fund Net performance (%) Calendar year returns (€) 2004 2005 2006 2007 2008 2009 2010 2011 Invesco Pan European 16.15 25.84 22.93 -1.80 -42.26 34.08 14.68 -8.59 Equity Fund (A-Acc) Mstar GIF OS Europe 9.97 25.11 18.50 0.56 -43.69 29.50 11.58 -11.20 Large Cap Blend Equity Quartile 1 2 1 4 2 1 2 2 Cumulative returns (€) YTD 1 year 3 years 5 years49522/EH/Pan Euro Equity French Fly-in/Jun12 Invesco Pan European 7.61 -6.53 51.46 -19.25 Equity Fund (A-Acc) Mstar GIF OS Europe 7.72 -6.77 34.35 -26.68 Large Cap Blend Equity Quartile 3 3 1 2 Past performance is not a guide to future returns Source: Morningstar © 2012 as at 30 April 2012. Fund and sector performance figures are shown in euros on a mid-to-mid basis, inclusive of gross reinvested income and net of the annual management charge and all other fund expenses. The figures do not reflect the entry charge paid by individual investors. John Surplice and Martin Walker took over management of this fund in July 2003. 33
  • 30. Invesco Pan European Fund Attribution summary 2011 10 largest positive attributors 10 largest negative attributors • EADS • Royal Dutch Shell* • Roche • Intl Cons Airline • Rhodia • Deutsche Boerse • Imperial Tobacco • Thyssenkrupp • BT Group • Rentokil Initial • Novartis • Nestle* • Resolution • Stora Enso49522/EH/Pan Euro Equity French Fly-in/Jun12 • G4S • Societe Generale • ASML Holding • Husqvarna • Lloyds Banking Group* • Sanofi* Main positive sectors: Industrials, Financials, Materials, Telecoms, Healthcare Main negative sectors: Consumer discretionary, Energy Source : Invesco Perpetual as at 31 December 2011. * indicate stocks not owned. 34
  • 31. Invesco Pan European Fund Attribution summary ytd to end April 10 largest positive attributors 10 largest negative attributors • Rentokil Initial • BBVA • Safran • SBM Offshore • EADS • Santander • Daimler • Storebrand • Michelin • HSBC* • C&C Group • Novartis • UPM-Kymmene • Mediaset49522/EH/Pan Euro Equity French Fly-in/Jun12 • Deutsche Boerse • Post NL • Henkel • Novo-Nordisk* • Intl Cons Airline • Carphone Warehouse Main positive sectors: Industrials, Telecoms, Consumer staples, Utilities*,Consumer discretionary Main negative sectors: Financials, Healthcare Source : Invesco Perpetual as at 30 April 2012. * indicate sectors/stocks not owned. 35
  • 32. Invesco Pan European Equity Fund 3 year ex post tracking error history Invesco Pan European Equity Fund rolling 3 year annualised TE vs MSCI Europe (€) 7 6 5 4 349522/EH/Pan Euro Equity French Fly-in/Jun12 2 1 0 Jun 06 Dec 06 Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Invesco Pan European Equity Fund Source: Invesco Perpetual 29 February 2012. 36
  • 33. Invesco Pan European Equity Fund Risk and return characteristics49522/EH/Pan Euro Equity French Fly-in/Jun12 Past performance is not a guide to future returns. Source: Mercer MPA databases from 1 July 2003 to 31 December 2011. Performance figures are for the Invesco Pan European Equity Fund, A share class, and are shown in Euros on a total return basis, and gross of the annual management charge and all other fund expenses. The figures do not reflect the entry charge paid by individual investors. 37
  • 34. Important Information This marketing document is exclusively for use by Professional Clients and financial advisors in Continental Europe and is not for consumer use. Data as at 30. April 2012, unless otherwise stated. Please do not redistribute this document. The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may get back the full amount invested. 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 and share class-specific Key Investor Information Documents, the latest Annual or Semi Annual Reports and the latest Prospectus, Articles and Trust Deeds. This information is available using the contact details of the issuer and is without charge. The information is also available from our website ww.invescoeurope.com Whilst great care has been taken to ensure that the information contained herein is accurate, no responsibility can be accepted for any errors, mistakes or omissions or for any action taken in reliance thereon. This document is not an invitation to subscribe for shares in the fund and is by way of information only.49522/EH/Pan Euro Equity French Fly-in/Jun12 Germany, Austria and Switzerland: This document is issued in Germany by Invesco Asset Management Deutschland GmbH, An der Welle 5, D-60322 Frankfurt, regulated by Bundesanstalt für Finanzdienstleistungsaufsicht. This document is issued in Austria by Invesco Asset Management Österreich GmbH, Rothenturmstr. 16-18, A-1010 Vienna and in Switzerland by Invesco Asset Management (Schweiz) AG, Stockerstr. 14, CH-8002 Zurich. Subscriptions of shares are only accepted on the basis of the most up to date legal offering documents. Swiss professional clients should consider this document only in connection with the relevant monthly fund fact sheet which contains further performance information. 38

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