Invesco Balanced-Risk Allocation FundThird Quarter 2012This marketing document is exclusively for use by ProfessionalClien...
Table of Contents    1. Invesco Organizational Structure    2. Fund Overview and Investment Process    3. Fund Performance...
1. Invesco Organizational Structure
Invesco Investment CapabilitiesIntentional InvestingSM is the science and art of                                          ...
Invesco Global Asset AllocationCapabilities                                        Global Asset Allocation                ...
Invesco Global Asset Allocation TeamTeam Member                        In the Industry Since          With the Firm Since ...
2. Investment Process
Invesco Balanced-Risk Allocation FundOverview                                              Balanced-Risk Allocation Fund1 ...
Invesco Balanced-Risk Allocation Fund 3-Step Investment Process                         1                      Focus on E...
Invesco Balanced-Risk Allocation FundDifferent Economic Scenarios are likely to favor different Asset Classes             ...
Invesco Balanced-Risk Allocation StrategyInvestment Objectives by Asset Class                 Equities                    ...
Invesco Balanced-Risk Allocation StrategyStep one: asset selection and equity exposure design                             ...
Invesco Balanced-Risk Allocation StrategyStep one: asset selection and fixed income exposure design                       ...
Invesco Balanced-Risk Allocation StrategyStep one: asset selection and commodity exposure design                          ...
Invesco Balanced-Risk Allocation FundStrategic Asset Allocation                  Equities1                                ...
Invesco Balanced-Risk Allocation FundAsset Weight vs. Risk Contribution     Illustrative Equity Tilted Balanced Portfolio ...
Invesco Balanced-Risk Allocation FundActive Positioning: From the Strategic to the Tactical Allocation                    ...
Invesco Balanced-Risk Allocation FundActive Positioning: From the Strategic to the Tactical Allocation                    ...
Invesco Balanced-Risk Allocation Fund     Targeted Risk Contribution Since Fund Inception*                                ...
3. Fund Performance and Positioning
Invesco Balanced-Risk Allocation Fund   Performance as of 30 September 2012                          Balanced-Risk Allocat...
Invesco Balanced-Risk Allocation Composite – EUR UCITS Performance as of 30 September 2012               200              ...
Invesco Balanced-Risk Allocation Fund                                                                                     ...
Invesco Balanced-Risk Allocation FundTargeted Active Positioning and Risk Allocation as of 30 September 2012     Equities ...
4. Additional Information
% Targeted Asset Class26                                                                                                  ...
Invesco Balanced-Risk Allocation FundBenefits  Seeks to balance the                                     Unlike traditional...
Invesco Balanced-Risk Allocation FundFund FactsFund name                                  Invesco Balanced-Risk Allocation...
Invesco Balanced-Risk Allocation Composite – EUR UCITSGIPS® Compliant Schedule of Investment Performance                  ...
Invesco Balanced-Risk Allocation Composite – EUR UCITSGIPS® Compliant Schedule of Investment Performance                  ...
Important InformationThis marketing document is exclusively for use by Professional Clients and financial advisors in Cont...
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Invesco asset management

  1. 1. Invesco Balanced-Risk Allocation FundThird Quarter 2012This marketing document is exclusively for use by ProfessionalClients and financial advisors in Continental Europe and is notfor consumer use. Please do not redistribute this document.
  2. 2. Table of Contents 1. Invesco Organizational Structure 2. Fund Overview and Investment Process 3. Fund Performance and Positioning 4. Additional Information2
  3. 3. 1. Invesco Organizational Structure
  4. 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 US$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 30 June 2012. Invesco Ltd. assets under management are as of June 30, 2012, and include all assets under advisement, distributed andoverseen by Invesco, including those of its affiliates Invesco Distributors, Inc. and Invesco PowerShares Capital Management LLC, which have an agreement with Deutsche Bank to provide certain marketing services for thePowerShares DB products. Invesco PowerShares Capital Management LLC is the sponsor for the PowerShares QQQ and BLDRS products and unit investment trusts. ALPS Distributors, Inc. is the distributor of PowerShares QQQ,BLDRS Funds and the PowerShares DB Funds. Invesco PowerShares Capital Management LLC and Invesco Distributors, Inc. are wholly owned, indirect subsidiaries of Invesco Ltd. Invesco Distributors, Inc. is the US distributor forInvesco Ltd.’s retail products. Invesco Ltd. is not affiliated with ALPS Distributors, Inc. or Deutsche Bank. The listed centers do not all provide products or services that are available in all jurisdictions, nor are their products andservices available on all platforms. The entities listed are each wholly owned, indirect subsidiaries of Invesco Ltd., except ALPS Distributors Inc., Deutsche Bank and Invesco Great Wall in Shenzhen, which is a joint venture betweenInvesco and Great Wall Securities, and the Huaneng Invesco WLR Investment Consulting Company Ltd. in Beijing, which is a joint venture between Huaneng Capital Services and WL Ross & Co. Please consult your Invescorepresentative for more information.4
  5. 5. Invesco Global Asset AllocationCapabilities Global Asset Allocation $23.8 B Risk Parity Strategies Commodity Strategies Market Selection Strategies US$16.0 B US$1.1 B US$6.7 B  Balanced-Risk Allocation  Balanced-Risk Commodity  Global Market Strategies Strategy Strategy  Active Balanced  Balanced-Risk Retirement Strategy  Premium Income Strategy  US$23.8 billion in assets  Team founded in 2000  10 team members with over 17 years average experienceSource: Invesco. Data as of 30/09/12.5
  6. 6. Invesco Global Asset Allocation TeamTeam Member In the Industry Since With the Firm Since EducationScott Wolle, CFA Virginia Tech, B.Sc. 1991 1999Chief Investment Officer Duke University, M.B.A.Mark Ahnrud, CFA Babson College, B.Sc. 1985 2000Portfolio Manager Duke University, M.B.A.Chris Devine, CFA Wake Forest University, B.A. 1996 1998Portfolio Manager University of Georgia, M.B.A.Scott Hixon, CFA Georgia Southern University, B.B.A.Portfolio Manager, Head of 1992 1994 Georgia State University, M.B.A.Investment ResearchChristian Ulrich, CFA 1987 2000 KV Zurich Business School, SwitzerlandPortfolio ManagerJohn CentnerInvestment Systems 1999 2012 BA, University of TennesseeAnalystRaymond Fu Georgia Institute of Technology, B.Sc. 2007 2007Quantitative Analyst Georgia State University, M.S.David Gluch, CFA 1995 1995 University of Texas, B.B.A.Client Portfolio ManagerMike McHugh, CFA 1996 1998 Bellevue University, B.S.Client Portfolio ManagerDr. Bernhard Pfaff University of Freiburg i. Br., Doctorate Degree 1998 2005Portfolio Manager University of Freiburg i. Br.As of 09/12. 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.6
  7. 7. 2. Investment Process
  8. 8. 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: Balance 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).8
  9. 9. 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. 9
  10. 10. 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.10
  11. 11. 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 $1 billion in daily trading volume standardized to 10% volatility • Minimize counter-party exposure • Transparent pricingSource: Invesco analysis. For illustrative purposes only.11
  12. 12. Invesco Balanced-Risk Allocation StrategyStep one: asset selection and equity exposure design Performance by Market Capitalization Austria Norway Equity Market (sorted by market capitalization) Avoids Concentration Risk: Belgium Capitalization-based benchmarks result Denmark in overly concentrated portfolios Singapore without an improvement in expected Italy return. Netherlands Hong Kong Spain Sweden Balances Risk: Australia With no clear indication of higher Switzerland Sharpe ratios for larger markets, the Germany appropriate allocation decision is based France on an equal risk contribution. 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.12
  13. 13. Invesco Balanced-Risk Allocation StrategyStep one: 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 Universe ≥$100 billion GDP and readily and/or market dislocations. Exposures available CDS spread 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.Source: Invesco analysis. *Credit Default Swaps.1For illustrative purposes only.13
  14. 14. Invesco Balanced-Risk Allocation StrategyStep one: asset selection and commodity exposure design 20 Backwardation Term Structure: 16 Certain commodities tend to Gasoline 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 Aluminum -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.14
  15. 15. 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 Russell 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.15
  16. 16. 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 Contribution1 Asset Weight 160% 140% Fixed Income 120% Weight % Fixed Risk allocation 100% Income drives weights 80% Fixed Income Stocks Commodities 60% Commodities 40% Commodities 20% Stocks Stocks 0% Unlevered Portfolio Risk Levered Portfolio Risk = 5.5%* = 8%*Sources: Invesco analysis and THOMSON REUTERS DataStream. 1The risk contribution refers to Invesco’s targeted strategic allocation whereby 1/3of the overall targeted portfolio risk is assigned to the various asset classes used within the strategy. * Risk target (standard deviation of monthlyreturns). For illustrative purposes only.16
  17. 17. 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.17
  18. 18. Invesco Balanced-Risk Allocation FundActive Positioning: From the Strategic to the Tactical Allocation Composition of Risk Level of Risk  Strategic Allocation is Strategic Strategic calculated through 10% volatility and correlation 33% 8,0 % estimates and re-set 8% monthly 22% 6% Risk (%) Risk (%)  Active positioning 4% allows the asset 11% weights to deviate from 2% the long-term strategic 0% 0% allocation and is Equities Fixed Income Commodities Strategic adjusted monthly Tactical Range Tactical Range  Depending on the 50% tactical indicators, the 10% 40% portfolio can be 8,0 % 6-10 33% strategic allocation 8% positioned within the 30% pre-determined risk 6% ranges Risk (%) Risk (%) 20% 4%  Scaled to a risk target 10% 2% of 2% 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.18
  19. 19. 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 35.76 49.85 Fixed Income 18.72 32.75 49.93 Commodities 22.00 31.48 39.88 Source: Invesco analysis. *Fund Inception: 01/09/09. Data as of 30/09/12. Based upon the targeted risk contribution. 19
  20. 20. 3. Fund Performance and Positioning
  21. 21. Invesco Balanced-Risk Allocation Fund Performance as of 30 September 2012 Balanced-Risk Allocation Fund 60% MSCI World & 40% JPM Europe Government Bond Index 20% 13.08% 13.05% 13.94% 12.28% 10.56% 10% 7.30% 8.51% Return (EUR) 6.20% 5.56% 5.46% 3.17% 1.40% 0% -0.76% -0.55% -1.60% -4.42% -10% Greek Financial Sovereign Debt Global Economic Recovery Recovery Recovery Recovery 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 - 05/12 06/12 - 09/12 Since Launch*Returns % as of YTD 3 Years Since Launch Since Launch 3 Months 1 Year 2011 2010 2009*30 September 2012 2012 (annualized) (cumulative)* (annualized)*Invesco Balanced-RiskAllocation Fund (Class A acc 5.00 7.28 12.61 12.08 42.90 12.28 11.65 13.30 5.30NAV)60% MSCI World/40% JPM 4.53 11.41 19.61 10.07 36.26 10.56 1.57 13.53 6.06Europe Gov’t Bond IndexExcess vs. Index 0.47 -4.13 -7.00 2.01 6.64 1.72 10.08 -0.23 -0.76 *Launch date: 01/09/09. As of 30/09/12. 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. 21
  22. 22. Invesco Balanced-Risk Allocation Composite – EUR UCITS Performance as of 30 September 2012 200 180 Composite Attribution Since Inception* (Gross Annualized) % 160 140 Fixed Income 6.09 120 Upside (%) Equities 1.93 100 60% MSCI World & Commodities 4.09 80 IBRA Composite – 40% JPM Europe 60 EUR UCITS Government Bond Active Positioning 1.14 40 Index Cash 0.71 20 Total 13.96 0 0 20 40 60 80 100 120 140 160 180 200 Downside (%) Avg Return No. Months Avg Return (%) vs. Market Month (%) 1 Year (%) Market Benchmark (%) (%) Annualized Return Up Down Since Inception Up Down Up Down Up Down Best Worst Best Worst R2 (Gross) Capture CaptureIBRA Composite – EUR UCITS 13.96 26 10 2.08 -1.40 1.68 -0.03 4.12 -3.30 18.57 8.96 94.8 5.1 0.160% MSCI World & 40% JPM 10.07 24 12 1.77 -1.07 1.77 -1.07 4.55 -3.38 19.61 -0.50 100.0 100.0 1.0Europe Government Bond Index *Inception date: 30/09/09. As of 30/09/12. 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 performance attribution table above represents the gross performance of the Invesco Balanced-Risk Allocation Composite – EUR UCITS composite and shows the attribution to total return by asset class. The tactical attribution is the result of over-/under-weights of the various asset class exposures vs. the strategic allocation. This information is supplemental to the Invesco Balanced-Risk Allocation Composite – EUR UCITS GIPS® performance. Details of the composite can be found in the Performance Disclosures section on pages 29-30. 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. 23. Invesco Balanced-Risk Allocation Fund 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 07/06/2012 08/17/2012 09/28/2012 Sources: Bloomberg L.P. and Invesco analysis. Daily data from 01/10/09 to 30/09/12. 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. This information is supplemental to the Invesco Balanced-Risk Allocation Composite – EUR UCITS GIPS® performance. For complete performance GIPS® disclosure, see pages 29-30.23
  24. 24. Invesco Balanced-Risk Allocation FundTargeted Active Positioning and Risk Allocation as of 30 September 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 4.20 44.34 37.14 Fixed Income 2.02 21.34 72.66 Commodities 3.25 34.32 30.92 Total 9.47% 100.00% 140.72Source: Invesco analysis. As of 30/09/12.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.24
  25. 25. 4. Additional Information
  26. 26. % Targeted Asset Class26 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 12/10 12.10 Source: Invesco analysis. *Fund Launch: 01/09/09. Data from 09/09 to 09/12. 01/11 01.11 Invesco Balanced-Risk Allocation Fund 02/11 02.11 03/11 03.11 Targeted Notional Exposure Since Fund Launch* 04/11 04.11 05/11 05.11 06/11 06.11 07/11 07.11 08/11 08.11 09/11 09.11 10/11 10.11 11/11 11.11 12/11 12.11 Stocks 01/12 01.12 02/12 02.12 03/12 03.12 Bonds 04/12 04.12 05/12 05.12 06/12 06.12 07/12 07.12 08/12 08.12 Commodities 09/12 09.12
  27. 27. 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.27
  28. 28. 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.28
  29. 29. Invesco Balanced-Risk Allocation Composite – EUR UCITSGIPS® Compliant Schedule of Investment Performance Composite Total Firm Gross Rate Net Rate Benchmark Composite Benchmark Number of Assets Assets CompositePeriod of Return of Return Return 3-Yr Std Dev 3-Yr Std Dev Portfolios (EUR Millions) (EUR Billions) Dispersion2011 13.62 % 12.78 % 1.57 % N/A % N/A % 1 $ 533.0 $ 369.6 N/A %2010 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/A Annual Compound Rates of Return Ended December 31, 2011 1 Year 13.62 % 12.78 % 1.57 % 2 Years 14.41 13.56 7.39 Since Inception* 14.74 13.89 8.32Currency: EURO. *Inception date: 30/09/09. Invesco Worldwide has prepared and presented this report in compliance with the USand Canadian version of the Global Investments Performance Standards (GIPS®). For complete GIPS® disclosure, see followingpage.Invesco Worldwide claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared andpresented this report in compliance with the GIPS standards. Invesco Worldwide has been independently verified for the periods 1stJanuary 2003 thru 31st December 2011. The legacy firms that constitute Invesco Worldwide have been verified since 2001 orearlier. 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 ona firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance withthe GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.29
  30. 30. Invesco Balanced-Risk Allocation Composite – EUR UCITSGIPS® Compliant Schedule of Investment Performance Invesco Worldwide has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS ®). 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 Canada 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. 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, 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 respective components.2 The Invesco Balanced-Risk Allocation Composite - EUR UCITS objective is to provide total returns with a low to moderate correlation to traditional financial market indices. The Composite seeks to achieve this objective by investing, under normal conditions, in derivatives and other financially linked instruments whose 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 of investment 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 is used for comparative purposes only. 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 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 times capital.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 Composite dispersion is measured by the standard deviation across asset-weighted portfolio returns represented within the composite for the full year. The three-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36 months. The standard deviation 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 the product 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 compliant presentations is available upon request.30
  31. 31. 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 30.09.12, 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 not get backthe full amount invested. Whilst the overall risk of the Fund intends to be consistent with that of a balanced portfolio of equity and debt securities, thismay not be achieved. The Fund will make significant use of financial derivatives for investment purposes in excess of the value of the portfolio thatcould lead to large fluctuations in the value of the Fund. The fund uses derivatives to gain leverage which can potentially be up to three times thevalue of its net assets. The Fund will gain exposure to commodities to diversify the risk of the fund. Commodities are generally considered to be highrisk investments and may result in large fluctuations in the value of the Fund. Debt instruments are exposed to credit risk which is the ability of theborrower to repay the interest and capital on the redemption date. If you are unsure of any of these risks please contact your advisor. Opinions andforecasts 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. This information is available usingthe contact details of the issuer and is without charge. The information is also available from our website www.invescoeurope.comWhilst 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 wayof information only.Not all share classes of this fund may be available for public sale in all jurisdictions and not all share classes are the same nor do they necessarily suitevery investor. There may be differences in fee structures, in minimum investment amounts, etc. Please check the most recent version of the fundprospectus in relation to the criteria for the individual share classes and contact your local Invesco office for full details of the fund registration statusin your jurisdiction. Please be advised that the information provided in this document is referring to Class A (accumulation - EUR) exclusively.Denmark: The fund is not registered for sale in these jurisdictions. This document is provided only at the request of a professional client or qualifiedinvestor and is intended for the sole use of this person. Portugal: The funds shares are not currently registered for sale. As a consequence, thefund’s shares may not be offered or distributed by way of public advertisement or public offer in this/these jurisdiction(s). The funds shares may onlybe offered and the legal offering documents (KIID, prospectus, annual reports) and marketing materials of the fund may only be distributed inthis/these jurisdiction(s) without public solicitation and in compliance with the private placement rules set forth in the laws, rules and regulations ofthe jurisdiction concerned. Germany, Austria and Switzerland: This document is issued in Germany by Invesco Asset Management DeutschlandGmbH regulated by Bundesanstalt für Finanzdienstleistungsaufsicht. This document is issued in Austria by Invesco Asset Management ÖsterreichGmbH and in Switzerland by Invesco Asset Management (Schweiz) AG. Subscriptions of shares are only accepted on the basis of the most up to datelegal offering documents. Swiss professional clients should consider this document only in connection with the relevant monthly fund fact sheet whichcontains further performance information. The legal offering documents (fund & share class specific Key Investor Information Document, prospectus,annual & semi-annual reports, articles and trustee deed) are available free of charge at our website www.invescoeurope.com and from the issuers: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 thefunds registered for sale in Switzerland: BNP PARIBAS SECURITIES SERVICES, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002 Zurich.31

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