52157 final ibra citywire jun13

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52157 final ibra citywire jun13

  1. 1. Invesco PerpetualBalanced Risk FundsCitywire Private Client Manager Retreat12-14 June 2013Christian Ulrich This presentation is for Professional Clientsonly and is not for consumer use.Portfolio Manager, Global Asset Allocation
  2. 2. Table of contents1. Invesco organizational structure2. Fund overview and investment process3. Fund positioning and performance4. Additional information
  3. 3. 1. Invesco organizationalstructure
  4. 4. Invesco investment capabilities4Source: Invesco Ltd. as at 31 March 2013. Not all of the Invesco brands listed are available in all countries, nor are they available on allplatforms. Please consult your Invesco representative for more information on any of the brands mentioned.US and Canada Asia UK and CE Australia
  5. 5. Invesco Global Asset AllocationStrategiesSource: Invesco. Data as of 31/03/13. Not all strategies mentioned may be available in all jurisdictions.5 $30.5 billion in assets Team founded in 2000 11 team members 19 years average experienceGlobal Asset Allocation — $30.5 BRisk Parity$23.1 BAlternative and Absolute Return$1.3 BMulti-Asset$ 6.1 B Balanced-Risk Allocation Balanced-Risk Retirement Balanced-Risk Commodity Global Markets Active Balanced Premium Income
  6. 6. 2. Investment process
  7. 7. Invesco Perpetual Balanced Risk FundsOverview – Diversified Growth with Balanced-Risk7Investment approach1 A risk controlled multi-asset portfolio seeking to achieve long-term capital growth throughdiversification across differing economic environments Apply an intelligent beta selection design (strategic portfolio) with an active overlay (tactical portfolio)Investment objective Seeks to reduce downside risk compared to more traditional balanced multi-asset portfolios Targets specific average portfolio volatility (6,8 or 10%) over a full market cycle2Additional benefits Daily liquidity No lock-up High capacity High transparency1 The funds will make significant use of financial derivatives (complex instruments) which will result in the funds being leveraged and may result in largefluctuations in the value of the funds. Leverage on certain types of transactions including derivatives may impair the funds’ liquidity, cause them to liquidatepositions at unfavourable times or otherwise cause the funds not to achieve their intended objective. Leverage occurs when the economic exposure created bythe use of derivatives is greater than the amount invested resulting in the funds being exposed to a greater loss than the initial investment.2 Portfolio volatility measured by standard deviation. Invesco Perpetual cannot guarantee these targets will be achieved.
  8. 8. Invesco Perpetual Balanced Risk FundsVolatility and performance targetsUK domiciled vehicles for the Balanced risk strategy werelaunched on 20 February 2012:Invesco Perpetual Balanced Risk 6 Fund seeks to target 6%average volatility over a full market cycle1Invesco Perpetual Balanced Risk 8 Fund seeks to target 8%average volatility over a full market cycle1Invesco Perpetual Balanced Risk 10 Fund will seek to target 10%average volatility over a full market cycle181Please note there is no guarantee these volatility targets will be achieved.
  9. 9. Invesco Perpetual Balanced Risk FundsInvestment process9Strategic1 Focus on Economic Diversification Seeks intelligent beta: purpose-build asset class exposures Targets highly liquid assets2 Seeks to balance risk across assets Aims to minimize risk of large drawdownsTactical3 Goal of capturing additional return with active positioning Aims to adapt to the current market environmentAssetselectionPortfolioconstructionActivepositioningFor illustrative purposes only.
  10. 10. Invesco Perpetual Balanced Risk FundsDifferent economic scenarios are likelyto favor different asset classesSource: Invesco analysis. For illustrative purposes only.10GrowthAssetsDeflationHedgesInflationHedgesInflationary GrowthIncluded: CommoditiesExcluded: Direct Real Estate Infrastructure TIPSNon-Inflationary GrowthIncluded: Developed EquitiesExcluded: Emerging Equities Private Equity High Yield/CreditRecession Long-Term Government Bonds(hedged)
  11. 11. Invesco Perpetual Balanced Risk FundsInvestment objectives by asset classSource: Invesco analysis. For illustrative purposes only.11Commodities Equities Fixed IncomeObjectives Attractive return per unitof risk High correlation withunexpected inflationObjective Attractive return per unitof riskObjective Effective “shock absorber”during recessions and crisesInflationary Growth Non-Inflationary Growth Recession High liquidity: at least $1 billion in daily trading volume standardized to 10% volatility Minimize counter-party exposure Transparent pricing
  12. 12. Invesco Perpetual Balanced Risk FundsStep one: Asset selection and commodity exposure designSources: Invesco analysis and THOMSON REUTERS DataStream. Time period represented: 10/90 – 12/12. Backwardation refers to a status where prices offutures contracts with a longer maturity are lower than the spot price of the commodity. Contango refers to a status where prices of futures contracts with a longermaturity are higher than the spot price of the commodity. Past performance is not a guarantee of future results. For illustrative purposes only.12Storage DifficultyStudies show that due to scarcity orstorage difficulty, certain commoditiestend to exhibit backwardation over timewhich can contribute to positive returns.Optimal RollUnderstanding the dynamics around thediffering contract maturities is importantand can add value.RebalancingOur research shows that correlationswithin a commodity complex (i.e.metals) are high. Conversely,correlations across commoditycomplexes are low. This createsopportunities for rebalancing return.WTI Crude OilHeating OilNatural GasGasolineCopperGoldSilverSoy MealWheatSoybean OilSoybeansCornLive CattleGasoilCottonCoffeeSugarAluminumBrent-20-16-12-8-4048121620-20 -10 0 10 20AverageAnnualizedExcessReturn(%)Average Annualized Term Structure (%)100% 0%BackwardationContango0.270.72 0.710.540.650.000.250.500.751.00AcrossComplexesEnergy PreciousMetalsIndustrialMetalsAgricultureAverageCorrelationCorrelation Within Commodity Complexes
  13. 13. Invesco Perpetual Balanced Risk FundsStep one: Asset selection and equity exposure designSources: THOMSON REUTERS DataStream, MSCI Inc. via FactSet Research Systems, Inc. and Invesco analysis. Maximum and minimum rolling 10 year Sharperatios from 31/12/81 through 31/12/12. Sorted by 31/12/12 market capitalization in ascending order. For illustrative purposes only.13-1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00USUKJapanCanadaFranceGermanySwitzerlandAustraliaSwedenSpainHong KongNetherlandsItalySingaporeDenmarkBelgiumNorwayAustriaRange of Sharpe ratiosEquityMarket(sortedbymarketcapitalization)Balances RiskWith no clear indication of higherSharpe ratios for larger markets,the allocation decision is based onan equal risk contribution.Avoids Concentration RiskCapitalization-based benchmarksresult in overly concentratedportfolios without an improvementin expected return.Performance by Market Capitalization
  14. 14. Credit adjustment1Invesco Perpetual Balanced Risk FundsStep one: Asset selection and fixed income exposure designSource: Invesco analysis. *Credit Default Swaps.1For illustrative purposes only.UniverseDefine universe of countries:≥ US$100 billion GDP andreadily available CDS spreaddata.safe-haven riskyDefine cut-offs for safe-havenand risky assets: 25th percentiledefines safe-haven and 50threpresents risky.Map the selected markets to thepercentiles and weights. ≤25thpercentile gets no credit qualityadjustment, median and aboveare removed from portfolio.Credit quality adjustmentAdjust the duration-weights toreflect country credit risk.0%100%14Asset SelectionFixed income assets are chosen on thebasis of their ability to react in anuncorrelated way to macroeconomicand/or market dislocations. Exposuresreflect volatility and qualitycharacteristics.Duration WeightsEach market contributes an equalamount to portfolio modified duration.This creates a bias toward higheryielding markets.Credit Quality AdjustmentThe markets in the strategy arecompared to a broad universe ofcountries to evaluate credit quality. Theprocess reduces or eliminates exposureto markets whose CDS* spread isabove the bottom quartile.
  15. 15. Invesco Perpetual Balanced-Risk FundsStep two: Strategic asset allocationSource: Invesco. For fixed income securities, modified duration is used to determine the initial risk-balanced allocation among the individual markets. Theseweights can be further adjusted to reflect a country’s creditworthiness. Although the objective is to achieve a risk profile corresponding to the risks of a mixedportfolio with equities and fixed income, there is no guarantee that this aim will be achieved and the net asset value of the funds can be very volatile from time totime. Asset classes are subject to change and are not buy/sell recommendations. For illustrative purposes only. The funds will gain fixed income exposure via the use of government bond futures and equity exposure through equityindex futures. The fund will gain commodity exposure through the use of exchange traded notes and exchange tradedfunds on commodities and derivatives on commodity indices. Fixed income and equity exposure will mainly be todeveloped markets but may also include emerging markets. Commodity exposure will include but is not restricted toprecious metals, agriculture, energy and industrial metals sectors. Due to the extensive use of derivatives funds will maintain a high level of its assets in cash, treasury bills, cashequivalent instruments including affiliated money market funds, which may serve as margin or collateral onderivative positions15Risk is balanced within the asset classesNon-Inflationary Growth Recession Inflationary GrowthHangSengIndexS&P500IndexTokyoStock PriceIndexEuroStoxx50® IndexRussell2000 IndexFTSE 100IndexJapaneseGovt BondsUSTreasuriesCanadianGovt BondsAustralianGovtBondsGermanBundsUK GiltsDiversifiedAgricultureOptimizedEnergyCopper GoldEquities Fixed Income Commodities
  16. 16. Invesco Perpetual Balanced Risk FundsStep two: Portfolio construction-asset weight vs. risk weight160%20%40%60%80%100%0%20%40%60%80%100%Traditional Multi-AssetPortfolioModern Multi-AssetPortfolioWeight%Weight%FixedIncomeStocksPropertyAbsolute returnUK FixedIncomeCashOverseas stocksPrivate EquityUK stocksBalanced-Risk Allocation PortfolioTargeted Strategic Risk Contribution2StocksCommoditiesFixedIncomeRisk Contribution1StocksFixedIncomeUKStocksPrivateEquityOverseasStocksAbsoluteReturnPropertyStrategic Asset Weight3(8% volatility target)*0%20%40%60%80%100%120%140%Weight%FixedIncomeStocksCommoditiesCommoditiesFixedIncomeStocksUnlevered Portfolio Risk= 5.9%Levered Portfolio Risk= 8%Sources: Invesco analysis and DataStream. The Modern Multi-Asset strategy is represented by 30% FTSE All-Share Index, 20% MSCI World ex-UK Index, 2%MSCI Europe Index, 2% MSCI USA Index (representing Private Equity), 20% Merrill Lynch UK Gilts 10-15 Year, 10% IPD All Properties Index, 6% HFRI FundWeighted Composite and 4% Merrill Lynch 3-month Sterling LIBOR. 1Approximation based on past results. 2The risk contribution refers to Invesco’s targetedstrategic allocation whereby 1/3 of the overall targeted portfolio risk is assigned to the various asset classes used within the strategy. 3Strategic asset weightfigures are approximations, base on actual portfolio results. *Invesco Perpetual cannot guarantee this target will be achieved. For illustrative purposes only.
  17. 17. Invesco Perpetual Balanced Risk FundsStep three: Active positioningSource: Invesco analysis. Although every effort will be made, it cannot be guaranteed that the stated targets will be reached. The annualized contribution to totalreturn is the contribution on top of the cash return. For illustrative purposes only.170102030405060708090100AnnualizedExcessReturnActive Positioning15-20% of TargetRisk Premia80-85% of TargetExpected sources of return (%)ValuationDetermine whether assets areattractively priced relative tofundamentals. Classic financialconcepts are utilized.Economic environmentConsider the effect of monetary policyand the economic environment onasset prices.Investor positioningAssess the impact of historic pricemovements on likely future returns.
  18. 18. Invesco Perpetual Balanced Risk FundsStep three: From strategic to tactical risk allocation18Sources: Invesco analysis and DataStream. *Risk target. Invesco Perpetual cannot guarantee these targets will be achieved. Strategic asset weights areapproximations, based on actual portfolio results. Asset classes are subject to change and are not buy/sell recommendations. For illustrative purposes only.Invesco Perpetual Balanced Risk FundsInvesco Perpetual Balanced Risk FundsRiskallocationdrives assetweightsStocks Stocks StocksFixedIncomeFixedIncomeFixedIncome0%20%40%60%80%100%120%140%160%180%IPBR 6%* IPBR 8%* IPBR 10%*Weight(%)StocksFixedIncomeCommoditiesRisk Contribution Strategic Asset WeightCommoditiesCommoditiesCommodities01020304050Equities Fixed Income Commodities33% strategic allocationComposition of Risk (%)Tactical range0%2%4%6%8%10%12%14%IPBR 6%* IPBR 8%* IPBR 10%*Risk(%)Tactical Allocation Range7.5 – 12.5%6 – 10%4.5 – 7.5%Strategic Allocation iscalculated through volatilityand correlation estimates andre-set monthly.Active positioning allows theasset weights to deviate fromthe long-term strategicallocation and is adjustedmonthly.Depending on the tacticalindicators, the portfolio canbe positioned within the pre-determined risk ranges.Scaled to proportionate risktargets.
  19. 19. 3. Fund positioning andperformance
  20. 20. Invesco Perpetual Balanced Risk FundsPooled vehicles and uses20Vehicles UsesTargetVolatility1ICVC Luxembourg-based UCITS6%Same Strategy as8%; allallocations 0.75xInvesco PerpetualBalanced Risk 6Fund (GBP)Diversified Growth Balanced exposure to economic outcomes Moderate levels of target risk Tactical shifts Long-only funds8% Invesco PerpetualBalanced Risk 8Fund (GBP)InvescoBalanced-RiskAllocation Fund(GBP, USD, EUR)Core Investment Broad asset class exposure Generally lower circulation to traditional assetclasses Distinctive approach typically results in lowcorrelation with other investment managers Tactical shifts10%Same Strategy as8%; allallocations 1.25xInvesco PerpetualBalanced Risk 10Fund (GBP)Alternatives Allocation Non-traditional investment approach Use of derivatives Use of leveragePlease note that separate accounts are available to clients with a minimum investment of $250,000 million (or local currency equivalent).1Please note there is no guarantee these volatility targets will be achieved.
  21. 21. Invesco Perpetual Balanced Risk FundsPerformance (%)21Source: Invesco Perpetual as at 30 April 2013. 1All fund inception: 29/02/12 - annualised.Gross fund performance figures are shown in sterling on a mid-to-mid basis, inclusive of net reinvested income and gross of the annual management charge andall other fund expenses for the Accumulation share class. Net fund performance figures are shown in sterling on a mid-to-mid basis, inclusive of net reinvestedincome and net of the annual management charge and all other fund expenses. The figures do not reflect the entry charge paid by individual investors.3 months YTD 1 year Sinceinception1SinceinceptionSharpeRatioInvesco Perpetual Balanced-Risk 6% (GBP – gross)(GBP – net)1.531.163.352.856.604.974.512.870.98Invesco Perpetual Balanced Risk 8% (GBP - gross)(GBP – net)2.171.814.263.768.636.975.964.301.04Invesco Perpetual Balanced Risk 10% (GBP - gross)(GBP – net)2.952.585.755.2411.319.597.665.961.08Past performance is not a guide to future returns
  22. 22. Invesco Balanced-Risk Allocation Fund (UCITS)Performance as of 30 April 2013Source: Morningstar ©2012. All rights reserved as at 30 April 2013. Fund performance figures are shown in Euros on a mid-to-mid basis, inclusive of grossreinvested income and net of the annual management charge and all other fund expenses for the A share class. The figures do not reflect the entry charge paid byindividual investors. Benchmark and index information source: Thomson Reuters DataStream net total return Euros.*Launch date: 01/09/09.221001101201301401501609/1/200910/01/200911/02/200912/02/200901/06/201002/05/201003/09/201004/12/201005/12/201006/11/201007/13/201008/12/201009/13/201010/13/201011/12/201012/14/201001/18/201102/17/201103/22/201104/21/201105/25/201106/24/201107/26/201108/25/201109/26/201110/26/201111/25/201112/29/20111/31/201203/01/201204/02/201205/04/201206/05/201207/05/201208/06/201209/05/201210/05/201211/06/201212/06/201201/11/201302/12/201303/14/201304/17/2013CumulativeReturns(%)Invesco Balanced-Risk Allocation Fund (Class A acc NAV)60% MSCI World/40% JPM Europe Govt Bond IndexEU adopts emergencyplan for GreeceComputer error causesUS stock market to crashStart of unrest inTunisia and EgyptEarthquakeand Tsunamiin JapanDowngradeof Greeceand Portugalcredit ratingSecond rescue packagefor GreeceS&PdowngradesUS creditratingUS SuperCommittee failson deficitagreementElections in Franceand GreecePast performance is not a guide to future returns. Please note that these composite figures are not representativeof the Invesco Perpetual Balanced Risk Funds.
  23. 23. Invesco Balanced-Risk Allocation Composite (UCITS)Performance attribution as of 30 April 201323Source: Invesco Perpetual as of 30/04/13. *Inception date: 30/09/09. Returns are gross of fees; net returns will be lower. The attribution/contribution figuresare estimates and should be used for indicative purposes only. Data cleansing and retrospective information availability may cause changes. This slide issupplemental information to the GIPS-compliant presentation on slides 29 and 30.0.124.423.864.001.37 7.646.130246810121416Cash Bonds Stocks Commodities ActivePositioningDiversification Total0.855.483.151.661.75 12.8902468101214Cash Bonds Stocks Commodities ActivePositioningTotalIBRA Attribution Bonds Stocks Commodities ActivePositioningCash TotalReturn Since Inception* 5.48 3.15 1.66 1.75 0.85 12.89Risk Since Inception 4.42 3.86 4.00 1.37 0.12 6.13DiversificationBenefitSince Inception Return Attribution (%) Since Inception Risk Attribution (%)Past performance is not a guide to future returns. Please note that these composite figures are not representative of the InvescoPerpetual Balanced Risk Funds.
  24. 24. Invesco Perpetual Balanced Risk FundsTarget tactical strategy, risk allocations and notional assetweights1as of 30 April 201324Source: Invesco analysis.1 Target refers to portfolio allocations for the upcoming month. The indicators (positive, negative, neutral) are in relation to the strategic allocation for the fund. Arisk allocation of 33% to each asset class is representative of the strategic allocation. Risk represents ex-ante standard deviation. Ex-ante standard deviationmeasures a fund’s range of total returns and identifies the spread of a fund’s fluctuations over a defined, forward-looking, period of time. The risk level derivedfrom each underlying asset determines how much the asset will contribute from a dollar-weight standpoint. Can be implemented with derivatives or financiallylinked instruments. This is not a recommendation to buy or sell any financial instrument.CommoditiesAgriculture EnergyDiversifiedAgricultureBrent CrudePrecious Metals WTI CrudeGold Industrial MetalsCopperEquitiesEurolandHong KongJapanUKUS Large CapUS Small CapFixed IncomeN Australian Gov’tN Canadian Gov’tN German BundsJapanese Gov’tUK Gov’tUS TreasuriesOverweight positionN Neutral positionUnderweight position.Target Risk Allocations and Notional Asset Weights (IPBR 8%)Asset class Marginal Risk % Contribution % Asset Weight %Equities 4.50 47.16 40.25Fixed Income 2.51 26.25 79.66Commodities 2.54 26.59 27.39TOTAL 9.55 100.00 147.30
  25. 25. 4. Additional information
  26. 26. Invesco Balanced-Risk Allocation Fund (UCITS)Targeted risk contribution since fund inception*260%25%50%75%100%09/09 12/09 03/10 06/10 09/10 12/10 03/11 06/11 09/11 12/11 03/12 06/12 09/12 12/12 03/13Minimum (%) Average (%) Maximum (%)Commodities 22.00 31.09 39.88Fixed Income 18.72 32.10 49.93Equities 16.73 36.81 49.85Risk Contribution (%)EquitiesFixed IncomeCommodities66%33%Source: Invesco analysis. *Fund Inception: 01/09/09. Data as of 30/04/13. Based upon the targeted risk contribution.
  27. 27. 02468101214161820222426283010/02/200912/25/200903/19/201006/11/201009/03/201011/26/201002/18/201105/13/201108/05/201110/28/201101/20/201204/13/201207/06/201209/28/201212/28/201203/25/2013Volatility(%)Invesco Balanced-Risk Allocation Fund A60% MSCI World/40% JPM Europe Govt. BondInvesco Balanced-Risk Allocation Fund (UCITS)Rolling 30-Day Volatility* Traditional Balanced: 60% MSCI World (EUR) 40% JP Morgan Government Bond Europe. Sources: Bloomberg L.P. and Invesco analysis. Daily data from01/10/09 to 30/04/13. Volatility is measured by the daily standard deviation of the fund. The Custom Balanced Risk Allocation Style Index is represented by60% MSCI World IndexSM, which is an unmanaged index considered representative of stocks of developed countries, and 40% JPMorgan European GovernmentBond Index, which is an unmanaged index considered representative of EUR sovereign debt fixed-income markets. An investment cannot be made directly in anindex. The blue line at 8% represents the ex-ante risk target for the fund; the dashed lines at 6% and 10% represent the ex-ante tactical risk range for thefund.27Past performance is not a guide to future returns
  28. 28. Invesco Global Asset Allocation TeamAs of 03/13. The investment team is supported by 4 traders based in London, Hong Kong and Atlanta, four dedicated Operations full time employeesand two product managers. The CFA® designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensivestudy program in the field of investment management and research analysis. The primary responsibilities of the client portfolio manager (CPM) are torepresent the investment team in the marketplace and to help manage the team’s business responsibilities. The CPM does not manage fund assets.28Team Member In theIndustry SinceWith theFirm SinceEducationScott Wolle, CFAChief Investment Officer1991 1999 Duke University, M.B.A.Virginia Tech, B.Sc.Mark Ahnrud, CFAPortfolio Manager1985 2000 Duke University, M.B.A.Babson College, B.Sc.Chris Devine, CFAPortfolio Manager1996 1998 University of Georgia, M.B.A.Wake Forest University, B.A.Scott Hixon, CFAPortfolio Manager, Headof Investment Research1992 1994 Georgia State University, M.B.A.Georgia Southern University, B.B.A.Christian Ulrich, CFAPortfolio Manager1987 2000 KV Zurich Business School, SwitzerlandJohn CentnerInvestment Systems Analyst1999 2012 BA, University of TennesseeRaymond FuQuantitative Analyst2007 2007 Georgia State University, M.S.Georgia Institute of Technology, B.Sc.David Gluch, CFAClient Portfolio Manager11995 1995 University of Texas, B.B.A.Mike McHugh, CFAClient Portfolio Manager11996 1998 Bellevue University, B.S.Dr. Bernhard PfaffPortfolio Manager1998 2005 University of Freiburg i. Br., Doctorate DegreeUniversity of Freiburg i. Br.Max Andres Widmer, CFAClient Portfolio Manager1 1988 2013Graduate School of Business Administration,(GSBA Zurich, Switzerland), B.B.A.
  29. 29. Invesco Balanced-Risk Allocation Composite EUR UCITSSchedule of investment performance (1)Currency: EURO. *Inception date: 30/09/09. Invesco Worldwide has prepared and presented this report in compliance with the US and Canadian version of theGlobal Investments Performance Standards (GIPS®). For complete GIPS® disclosure, see following page.Invesco Worldwide claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance withthe GIPS standards. Invesco Worldwide has been independently verified for the periods 1st January 2003 thru 31st December 2011. The legacy firms thatconstitute 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) thefirm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracyof any specific composite presentation.Gross rateof return(%)Net rateof return(%)Benchmarkreturn(%)Composite3-Yr AnnSt Dev (%)Benchmark3-Yr AnnSt Dev (%)No ofportfoliosCompositeassets(Eur mn)Total firmassets1(Eur bn)Compositedispersion(%)2012 8.90 8.08 12.22 6.49 5.98 1 2609 377.0 N/A2011 13.62 12.78 1.57 N/A N/A 1 533.0 369.6 N/A2010 15.21 14.35 13.53 N/A N/A 1 46.0 354.3 N/A2009(3 months)4.10 3.90 3.81 N/A N/A 1 3.0 207.8 N/AAnnualised compound rates of return ending 31 December 20121 year 8.90 8.08 12.222 years 11.24 10.41 6.763 years 12.54 11.70 8.97Sinceinception*12.91 12.07 9.51Past performance is not a guide to future returns. Please note that these composite figures are not representative of theInvesco Perpetual Balanced Risk Funds.29
  30. 30. Invesco Balanced-Risk Allocation Composite EUR UCITSSchedule of investment performance (2)1. Invesco Worldwide (“The Firm”) manages a broad array of investment strategies around the world. The Firm comprises U.S.-based Invesco Advisers, Inc. andall wholly owned Invesco firms outside of North America. All entities within the Firm are directly or indirectly owned by Invesco Ltd. GIPS-compliant firmswhose assets are managed by subsidiaries of Invesco Ltd. are Invesco Canada Ltd. and Atlantic Trust. Invesco Senior Secured Management, Inc. InvescoPrivate Capital, Inc. and Invesco PowerShares Capital Management LLC are also affiliates of the Firm. Each is an SEC-registered investment adviser and ismarketed as a separate entity. Invesco Great Wall Fund Management Co. Ltd (IGW) is a fund management company established under China SecuritiesRegulatory Commission’s approval. Their assets are excluded from total Firm assets. On Dec. 31, 2009, Invesco Aim Advisors, Inc. (AIM), Invesco AIM CapitalManagement, Inc. (ACM), Invesco Aim Private Asset Management, Inc. (APAM) and Invesco Global Asset Management (N.A.), Inc. merged into InvescoInstitutional (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 includedin the Firm. 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 andverified by an independent verifier through Dec. 31, 2009. 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 respectivecomponents.2. The Invesco Balanced-Risk Allocation Composite - EUR UCITS objective is to provide total returns with a low to moderate correlation to traditional financialmarket indices. The Composite seeks to achieve this objective by investing, under normal conditions, in derivatives and other financially linked instrumentswhose performance is expected to correspond to US and international fixed income, equity and commodity markets. Relative to traditional balanced portfolios,the fund will seek to provide greater capital loss protection during down markets by using a proprietary investment process that seeks to balance the amount ofinvestment risk contributed by its exposure to the equity, fixed income and commodity markets. The Composite is denominated in Euro.3. The composite is benchmarked to a custom benchmark consisting of 60% MSCI World / 40% JP Morgan Global Government Bond Europe. The benchmark isused for comparative purposes only. Investments made by the Firm for the portfolios it manages according to respective strategies may differ significantly interms of security holdings, industry weightings, and asset allocation from those of the benchmark. Accordingly, investment results and volatility will differ fromthose of the benchmark.4. The Balanced-Risk Allocation – EUR UCITS strategy invests primarily in long-only commodity, equity and bond futures and exchange traded commodities (ETC)in different regions around the globe targeting equity-like returns with bond-like risk. The composite’s notional value will generally not exceed 2.5 timescapital.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 levelreturns are calculated as time-weighted total returns on daily basis. Accrual accounting is used for all interest and dividend income. Past performance is not anindication of future results.6. Composite dispersion is measured by the standard deviation across asset-weighted portfolio returns represented within the composite for the full year. Thethree-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36 months. The standarddeviation is not presented when there is less than 36 months.7. 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 theproduct from the monthly returns. The management fee is 75 basis points.8. The composite creation date is September 30, 2009.9. A complete list of composite descriptions is available upon request. Polices for valuing portfolios, calculating performance, and preparing compliantpresentations is available upon request.Source: Invesco as at 31 December 2012. Please note that these composite figures are not representative of the Invesco PerpetualBalanced-Risk Funds.30
  31. 31. Important information (1)This presentation is for Professional Clients only and is not forconsumer use.The value of investments and any income will fluctuate (this maypartly be the result of exchange rate fluctuations) and investors maynot get back the full amount invested.Past performance is not a guide to future returns.Where Invesco has expressed opinions, these may change.Invesco Balanced-Risk Allocation FundWhilst the overall risk of the Fund intends to be consistent with that ofa balanced portfolio of equity and debt securities, this may not beachieved.The Fund will make significant use of financial derivatives forinvestment purposes in excess of the value of the portfolio that couldlead to large fluctuations in the value of the Fund.The fund uses derivatives to gain leverage which can potentially be upto three times the value of its net assets.The Fund will gain exposure to commodities to diversify the risk of thefund. Commodities are generally considered to be high riskinvestments and may result in large fluctuations in the value of theFund.Debt instruments are exposed to credit risk which is the ability of theborrower to repay the interest and capital on the redemption date.Invesco Perpetual Balanced-Risk 6, 8 and 10 FundsThe funds will make significant use of financial derivatives (complexinstruments) which will result in the funds being leveraged and mayresult in large fluctuations in the value of the funds. Leverage oncertain types of transactions including derivatives may impair thefunds’ liquidity, cause them to liquidate positions at unfavourable timesor otherwise cause the funds not to achieve their intended objective.Leverage occurs when the economic exposure created by the use ofderivatives is greater than the amount invested resulting in the fundsbeing exposed to a greater loss than the initial investment.The funds will gain exposure to commodities which are generallyconsidered to be high risk investments and may result in largefluctuations in the value of the funds.Fixed income securities to which the funds are exposed are open tocredit risk which may result in issuers not always making interest andor other payments nor is the solvency of the issuers guaranteed.31
  32. 32. Important information (2)The distribution and the offering of the Invesco Balanced-RiskAllocation Fund in certain jurisdictions may be restricted by law.Persons into whose possession this document may come are requiredto inform themselves about and to comply with any relevantrestrictions. This does not constitute an offer or solicitation by anyonein any jurisdiction in which such an offer is not authorised or to anyperson to whom it is unlawful to make such an offer or solicitation.Persons interested in acquiring the Invesco Balanced-Risk AllocationFund should inform themselves as to (i) the legal requirements in thecountries of their nationality, residence, ordinary residence or domicile;(ii) any foreign exchange controls and (iii) any relevant taxconsequences.The Invesco Balanced-Risk Allocation Fund is available only injurisdictions where its promotion and sale is permitted.For the purposes of UK law, the Invesco Balanced-Risk Allocation Fundis a recognised scheme under section 264 of the Financial Services &Markets Act 2000. The protections provided by the UK regulatorysystem, for the protection of Retail Clients, do not apply to offshoreinvestments.Further informationFurther information on our offshore fund range please refer to therelevant, most up to date fund and share-class specific Key InvestorInformation Documents.For further information on our ICVC funds please refer to the relevant,most up to date fund and share-class specific Key Investor InformationDocuments and the Supplementary Information Document availablefrom Invesco Fund Managers Limited using the contact details shownbelow.32Issued by:Invesco Fund Managers Limited, Invesco Global Investment Funds Limited and Invesco Asset Management LimitedAuthorised and regulated by the Financial Conduct AuthorityRegistered Address: 30 Finsbury Square, London EC2A 1AG .

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