Citywire event 092012 ahnrud complied 30_08_12
-
Upload
citywirewebsite -
Category
Economy & Finance
-
view
606 -
download
0
description
Transcript of Citywire event 092012 ahnrud complied 30_08_12
Second Quarter 2012
Invesco Balanced-Risk Allocation Fund
This presentation is for Professional Clients only and is not to be redistributed.
Table of Contents
2
1. Invesco Organizational Structure
2. Fund Overview and Investment Process
3. Fund Performance and Positioning
4. Additional Information
1. Invesco Organizational Structure
Invesco Investment Capabilities
4
Invesco Asia-Pacific
Investment Focus: Asian ex Japan Greater China Japan Australia Locations: Beijing, Hong Kong, Melbourne, Shenzhen, Sydney, Taipei, Tokyo
Invesco Fundamental Equities
Investment Focus: US growth equity US core equity US value equity International and global
growth equity Sector equity Balanced portfolios Locations: Austin, Houston, San Francisco
Invesco Perpetual
Investment Focus: • Global and regional
equities including UK, European, Asian, Japanese and emerging markets
• Fixed income Locations: Henley, UK
Invesco Unit Investment Trusts
Investment Focus: Equity trusts Closed-end trusts Tax-free fixed-income
trusts Taxable fixed-income
trusts Location: Chicago
Source: Invesco. Client-related data, investment professional and employee data are as of June30, 2012. Invesco Ltd. assets under management are as of June 30, 2012.
Intentional InvestingSM is the science and art of investing with purpose, prudence and diligence. It‘s the philosophy that forms the foundation of our „investors first“ approach, exemplified by our commitment to investment excellence, depth of investment capabilities and organizational strength. As an independent firm, our global organization is solely focused on investment management: More than 600 investment professionals Global assets under management
of $672.8 billion Investment expertise in 11 countries More than 6,000 employees worldwide
Invesco Global Strategies
Investment Focus: Global equity (global, non-
US and emerging market equities)
Canadian equities Global quantitative equity
(quantitative active, enhanced and long/short strategies)
Global asset allocation (global macro, risk parity, commodities and active balanced solutions)
Locations: Atlanta, Boston, Frankfurt, Melbourne, New York, Tokyo, Toronto
Atlantic Trust
Investment Focus: High-net-worth wealth
management US-equities; master
limited partnerships (MLPs)
Multi-manager investment program
Locations: Atlanta, Austin, Baltimore, Boston, Chicago, Denver, Houston, New York, Newport Beach, CA, San Francisco, Washington, D.C.
Invesco Fixed Income
Investment Focus: • Global money markets
and cash management • Stable value • Global and US broad
fixed income • Global alternatives and
bank loans Locations: Chicago, Hong Kong, Houston, London, Louisville, Melbourne, New York, Palm Harbor, FL, San Diego, Tokyo
WL Ross & Co.
Investment Focus: Distressed and
restructuring private equities
Energy private equities Locations: Beijing, Mumbai, New York, Tokyo
Invesco Real Estate
Investment Focus: Global direct real estate
investing Global public real estate
investing Locations: Atlanta, Dallas, Hong Kong, London, Luxemburg, Madrid, Munich, New York, Newport Beach, CA, Paris, Prague, San Fransisco, Seoul, Shanghai, Singapore, Tokyo
Invesco PowerShares
Investment Focus: Index-based ETFs and ETNs and actively managed ETFs Domestic and international
equity Taxable and tax-free fixed
income Commodities and
currencies Location: Chicago
Invesco Canada
Investment Focus: Trimark Investment Canadian, regional,
sector and global equity Canadian and global
fixed income Balanced portfolios Locations: Toronto
Invesco Private Capital
Investment Focus: Private equity funds of
funds Customized portfolios Locations: London, New York, San Francisco
Invesco Global Asset Allocation Capabilities
Source: Invesco. Data as of 30/06/12.
Balanced-Risk Allocation Strategy
Balanced-Risk Retirement Strategy
Premium Income Strategy
Risk Parity Strategies US$11.4 B
Global Asset Allocation
US$18.4 B
Balanced-Risk Commodity Strategy
Commodity Strategies US$0.9 B
Active Balanced
Macro Overlay
Capital Protection
Market Selection Strategies US$6.1 B
US$18.4 billion in assets
Team founded in 2000
10 team members with over 17 years average experience
5
Invesco Global Asset Allocation Team
As of 06/12. The investment team is supported by 4 traders based in London, Hong Kong and Atlanta, 4 dedicated Operations full time
employees and 2 product managers. The CFA® designation is globally recognized and attests to a charterholder’s success in a rigorous and
comprehensive study program in the field of investment management and research analysis.
Team Member In the
Industry Since With the
Firm Since Education
Scott Wolle, CFA Chief Investment Officer
1991 1999 Duke University, M.B.A. Virginia Tech, B.S.
Mark Ahnrud, CFA Portfolio Manager
1985 2000 Duke University, M.B.A. Babson College, B.S.
John Centner Investment Analyst
1999 2012 University of Tennessee, B.A.
Chris Devine, CFA Portfolio Manager
1996 1998 University of Georgia, M.B.A. Wake Forest University, B.A.
Raymond Fu Quantitative Analyst
2007 2007 Georgia State University, M.S. Georgia Institute of Technology, B.S.
6
Invesco Global Asset Allocation Team
Team Member In the
Industry Since With the
Firm Since Education
David Gluch, CFA Client Portfolio Manager*
1995 1995 University of Texas, B.B.A.
Scott Hixon, CFA Portfolio Manager, Head of Investment Research
1992 1994 Georgia State University, M.B.A. Georgia Southern University, B.B.A.
Mike McHugh, CFA Client Portfolio Manager*
1996 1998 Bellevue University, B.S.
Dr. Bernhard Pfaff Portfolio Manager
1998 2005 University of Freiburg i. Br., Doctorate Degree and Diploma
Christian Ulrich, CFA Portfolio Manager
1987 2000 KV Zurich Business School, Switzerland
As of 06/12. The investment team is supported by 4 traders based in London, Hong Kong and Atlanta, 4 dedicated Operations full time
employees and 2 product managers. The CFA® designation is globally recognized and attests to a charterholder’s success in a rigorous and
comprehensive study program in the field of investment management and research analysis. *The primary responsibilities of the client portfolio
manager (CPM) are to represent the investment team in the marketplace and to help manage the team’s business responsibilities. The CPM does
not manage fund assets.
7
2. Investment Process
Invesco Balanced-Risk Allocation Fund Overview
1The Fund will make significant use of financial derivative instruments for investment purposes. This means that the net asset value of the Fund may, 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 this presentation.
2The aggregate notional/contract value of long financial derivative instruments positions can be as much as 200% (expressed in net assets of the fund).
9
Total return asset allocation solution that seeks to balance the risk across economic outcomes.
Balanced-Risk Allocation Fund1
Strategic Asset Allocation:
Balances risk equally among long-only investments. Economic outcomes covered by investments in derivatives of equities, government bonds and commodities2
Tactical Allocation:
Uses active positioning to enhance return
Invesco Balanced-Risk Allocation Fund 3-Step Investment Process
For illustrative purposes only. Although every effort will be made, it cannot be guaranteed that the stated targets will be reached.
10
Focus on Economic Diversification
Seeks Intelligent Beta: purpose-build asset class exposures
Targets highly liquid assets Asset
Selection
1
Seeks to balance risk across assets
Aims to minimize risk of large drawdowns Portfolio
Construction
2
Goal of capturing additional return with active positioning
Aims to adapt to the current market environment Active
Positioning
3
Str
ate
gic
Tacti
cal
Invesco Balanced-Risk Allocation Fund Different Economic Scenarios are likely to favor different Asset Classes
Source: Invesco analysis. For illustrative purposes only.
11
Included: Commodities
Excluded:
Direct Real Estate
Infrastructure
TIPS
Inflationary Growth
Included: Developed Equities
Excluded:
Emerging Equities
Private Equity
High Yield/Credit
Non-Inflationary Growth
Long-Term Government Bonds (hedged)
Recession
Growth Assets
Inflation Hedges
Deflation Hedges
12
Investment Objectives by Asset Class
Source: Invesco analysis. For illustrative purposes only.
Invesco Balanced-Risk Allocation Strategy
• High liquidity: at least US$1 billion in daily trading volume standardized to 10% volatility
• Minimize counter-party exposure
• Transparent pricing
Equities
Non-Inflationary Growth
Objective: Attractive Return per Unit of Risk
Fixed Income
Recession
Objective: Effective “Shock Absorber” During Recessions & Crises
Commodities
Inflationary Growth
Objectives: Attractive Return per Unit of Risk High Correlation with Unexpected Inflation
Performance by Market Capitalization
Invesco Balanced-Risk Allocation Strategy Step one: asset selection and equity exposure design
Sources: THOMSON REUTERS DataStream, MSCI Inc. via FactSet Research Systems, Inc. and Invesco analysis. Maximum and minimum rolling 10 year Sharpe ratios from 31/12/81 through 31/12/11. Sorted by 31/12/11 market capitalization in ascending order. For illustrative purposes only.
Avoids Concentration Risk: Capitalization-based benchmarks result in overly concentrated portfolios without an improvement in expected return.
-1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00
US
UK
Japan
Canada
France
Germany
Switzerland
Australia
Sweden
Spain
Hong Kong
Netherlands
Italy
Singapore
Denmark
Belgium
Norway
Austria
Range of Sharpe ratios
Eq
uit
y M
arket
(sorte
d b
y m
arket
cap
itali
zati
on
)
Balances Risk: With no clear indication of higher Sharpe ratios for larger markets, the appropriate allocation decision is based on an equal risk contribution.
13
Invesco Balanced-Risk Allocation Strategy Step two: asset selection and fixed income exposure design
Sources: Bloomberg and Invesco analysis from 01/10/09 through 30/06/12. *Credit Default Swaps.
1For illustrative purposes only.
Asset Selection: Fixed income assets should be chosen on the basis of their ability to react in an uncorrelated way to macroeconomic and/or market dislocations. Exposures should reflect volatility and quality characteristics.
Duration Weights: Strategically, each market contributes an equal amount to portfolio modified duration. This creates a bias toward higher yielding markets.
Credit Quality Adjustment: The markets in the strategy are compared to a broad universe of countries to evaluate credit quality. The process reduces or eliminates exposure to markets whose CDS* spread is above the bottom quartile.
Credit Adjustment1
14
Universe
Define universe of countries: ≥US$100 billion GDP and readily available CDS spread data.
Safe-Haven Risky
Define cut-offs for safe-haven and risky assets: 25th percentile defines safe-haven and 50th represents risky.
Map the selected markets to the percentiles and weights. ≤25th percentile for full weight; median and above receive no weight.
Credit Quality Adjustment
Adjust the duration-weights to reflect country credit risk.
0% 100%
Invesco Balanced-Risk Allocation Strategy Step three: asset selection and commodity exposure design
Sources: Invesco analysis and THOMSON REUTERS DataStream. Time period represented: 12/91 – 12/11. Backwardation refers to a status where prices of futures 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 longer maturity are higher than the spot price of the commodity. Past performance is not a guarantee of future results. For illustrative purposes only.
Term Structure: Certain commodities tend to exhibit backwardation over time which contributes to positive returns
Optimal Roll: Understanding the dynamics around the differing contract maturities is important and can add value
Rebalancing: Our research shows that correlations within a commodity complex (i.e. metals) are high. Conversely, correlations across commodity complexes are low. This creates opportunities for rebalancing return.
15
WTI Crude Oil
Heizöl
Natural Gas
Gasonline
Copper
Gold
Silver
Soy Meal
Wheat
Soybean Oil
Soybeans
Corn
Live Cattle
Gasoil
Cotton
Coffee
Sugar
Aluminium
Brent
-20
-16
-12
-8
-4
0
4
8
12
16
20
-20 -15 -10 -5 0 5 10 15 20
Averag
e A
nn
uali
zed
Excess R
etu
rn
vs.
Cash
(%
)
Average Annualized Term Structure (%)
Contango
Backwardation
1/3 des gesamten Portfoliorisikos
Div. Agrar-rohstoffe
WTI / Brent Rohöl
Gold Kupfer
Invesco Balanced-Risk Allocation Fund Strategic Asset Allocation
1Can 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 allocation among the individual markets. These weights 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 mixed portfolio with equities and fixed income, there is no guarantee that this aim will be achieved and the net asset value of the fund can be very volatile from time to time. Asset classes are subject to change and are not buy/sell recommendations.
16
Equities1 Commodities1
1/3 Total Portfolio Risk 1/3 Total Portfolio Risk 1/3 Total Portfolio Risk
Hang Seng Index
S&P 500
Tokyo Stock Price
Index
EuroStoxx 50® Index
Russel 2000 Index
FTSE 100 Index
Japanese Gov't Bonds
US Treasuries
Canadian Gov't Bonds
Australian Gov't Bonds
German Bunds
UK Gilts
Diversified Agriculture
WTI Crude/ Brent Crude
Copper Gold
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 funds
Fixed Income1
Asset Weight Risk Contribution
Risk Contribution Asset Weight
Invesco Balanced-Risk Allocation Fund Asset Weight vs. Risk Contribution
Sources: Invesco analysis and THOMSON REUTERS DataStream. For illustrative purposes only. Commodities are represented by the S&P Goldman Sachs Commodity Index. Fixed Income is represented by the Barclays Treasury Index. Equities are represented by the S&P 500 Index. Asset classes are subject to change and are not buy/sell recommendations. *Risk target.
17
Commodities Stocks
Fixed Income
Fixed Income
Stocks
Weights drive risk allocation
Risk allocation drives weights
Stocks
Fixed Income
0%
20%
40%
60%
80%
100%
Weig
ht
%
Illustrative Equity Tilted Balanced Portfolio
Invesco Balanced-Risk Allocation Fund
Risk = 10%
0%
20%
40%
60%
80%
100%
120%
140%
160%
Weig
ht
%
Fixed Income
Commodities
Stocks
Fixed Income
Commodities
Stocks
Unlevered Portfolio Risk = 5.5%*
Levered Portfolio Risk = 8%*
Active Positioning: 15-20% of Target
Risk Premia: 80-85% of Target
Invesco Balanced-Risk Allocation Fund Active Positioning: From the Strategic to the Tactical Allocation
Source: Invesco analysis. For illustrative purposes only. Although every effort will be made, it cannot be guaranteed that the stated targets will be reached. The annualized contribution to total return is the contribution on top of the cash return.
Determine whether assets are attractively priced relative to fundamentals. Classic financial concepts are utilized.
Valuation
Consider the effect of monetary policy and the economic environment on asset prices.
Economic Environment
Assess the impact of historic price movements on likely future returns.
Investor Positioning
18
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
An
nu
alized
Excess R
etu
rn
Expected Long Term Sources of Return
Invesco Balanced-Risk Allocation Fund Active Positioning: From the Strategic to the Tactical Allocation
Asset classes are subject to change and are not buy/sell recommendations. Source: Invesco analysis. Above figures do not represent specific time periods or actual portfolio results. For illustrative purposes only.
19
0%
10%
20%
30%
40%
50%
Equities Fixed Income Commodities
Ris
k (
%)
33% strategic allocation
Strategic Strategic
0%
11%
22%
33%
Equities Fixed Income Commodities
Ris
k (
%)
0%
2%
4%
6%
8%
10%
Strategic
Ris
k (
%)
8,0 %
Composition of Risk Level of Risk
Tactical Range Tactical Range
0%
2%
4%
6%
8%
10%
Tactical
Ris
k (
%)
8,0 %
6-1
0
Strategic Allocation is
calculated through
volatility and correlation
estimates and re-set
monthly
Active positioning
allows the asset
weights to deviate from
the long-term strategic
allocation and is
adjusted monthly
Depending on the
tactical indicators, the
portfolio can be
positioned within the
pre-determined risk
ranges
Tracking error target of
2% relative to strategic
allocation
Invesco Balanced-Risk Allocation Fund Targeted Risk Contribution Since Fund Inception*
Source: Invesco analysis. *Fund Inception: 01/09/09. Data as of 30/06/12. Based upon the targeted risk contribution.
20
Minimum (%) Average (%) Maximum (%)
Equities 16.73 34.79 49.85
Fixed Income 18.72 33.64 49.93
Commodities 22.00 31.57 39.88
33%
66%
0%
25%
50%
75%
100%
Ris
k C
on
trib
uti
on
(%
)
Equities Fixed Income Commodities
3. Fund Performance and Positioning
Invesco Balanced-Risk Allocation Fund Performance as of 30 June 2012
*Launch date: 01/09/09. As of 30/06/12. Past performance is not an indication for future performance, provides no guarantee for the future and is not constant over time. Source: Morningstar, mid to mid, gross income reinvested in fund currency. The figures do not reflect the initial charge payable by individual investors. Past performance is not an indication of future performance, provides no guarantee for the future and is not constant over time. The value of investments and income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Current tax levels may change. Depending on individual circumstances, this may affect investment returns.
22
Annualized Attribution Since Launch* (Gross) %
Fixed Income 6.40
Equities 1.97
Commodities 3.13
Active Positioning 1.07
Cash 0.76
Recovery Greek
Financial Crisis Recovery
Sovereign Debt Concerns
Recovery Global Economic
Slowdown
7.30%
1.40%
13.05%
3.17%
8.51%
-1.16%
11.51% 13.11%
-1.35%
6.80%
-4.64%
13.60%
0.17%
9.51%
-20%
-10%
0%
10%
20%
09/09 - 03/10 04/10 - 06/10 07/10 - 04/11 05/11 - 09/11 10/11 - 03/12 04/12 - 06/12 Since Launch*
Retu
rn
(EU
R)
Balanced-Risk Allocation Fund 60% MSCI World & 40% JPM Europe Government Bond Index
Returns % as of 30 June 2012
3 Months 1 Year Since Launch cumulative*
Since Launch annualized*
Invesco Balanced-Risk Allocation Fund (Class A acc NAV)
-1.16 10.74 36.10 11.51
60% MSCI World/40% JPM Europe Gov’t Bond Index
0.17 8.99 29.33 9.51
Excess vs. Index -1.33 1.75 6.77 2.00
Invesco Balanced-Risk Allocation Fund Performance as of 30 June 2012
*Launch date: 01/09/09. As of 30/06/12. Past performance is not an indication for future performance, provides no guarantee for the future and is not constant over time. Source: Zephyr StyleADVISOR. The value of investments and income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Current tax levels may change. Depending on individual circumstances, this may affect investment returns.
23
0
20
40
60
80
100
120
140
160
180
200
0 20 40 60 80 100 120 140 160 180 200
Upsid
e (
%)
Downside (%)
Invesco Balanced-Risk Allocation Fund
60% MSCI World & 40% JPM Europe Government Bond Index
No. Months Avg Return (%) Avg Return vs. Market (%)
Month (%) 1 Year (%) Market Benchmark (%)
Up Down Up Down Up Down Best Worst Best Worst Up
Capture Down
Capture R2
Invesco Balanced-Risk Allocation Fund 24 10 2.06 -1.56 1.63 -0.17 3.99 -3.42 16.64 8.48 83.1 17.6 0.1
60% MSCI World & 40% JPM Europe Government
Bond Index 22 12 1.92 -1.14 1.92 -1.14 4.62 -3.30 15.99 -0.55 100.0 100.0 1.0
Invesco Balanced-Risk Allocation Fund - UCITS
Sources: Bloomberg L.P. and Invesco analysis. Daily data from 01/10/09 to 30/06/12. Volatility is measured by the daily standard deviation of the fund. The Custom Balanced Risk Allocation Style Index is represented by 60% MSCI World IndexSM, which is an unmanaged index considered representative of stocks of developed countries, and 40% JPMorgan European Government Bond Index, which is an unmanaged index considered representative of EUR sovereign debt fixed-income markets. An investment cannot be made directly in an index. Past performance cannot guarantee comparable future results.
Rolling 30 Day Volatility
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
10/0
2/2
009
11/1
3/2
009
12/2
5/2
009
02/0
5/2
010
03/1
9/2
010
04/3
0/2
010
06/1
1/2
010
07/2
3/2
010
09/0
3/2
010
10/1
5/2
010
11/2
6/2
010
01/0
7/2
011
02/1
8/2
011
04/0
1/2
011
05/1
3/2
011
06/2
4/2
011
08/0
5/2
011
09/1
6/2
011
10/2
8/2
011
12/0
9/2
011
01/2
0/2
012
03/0
2/2
012
04/1
3/2
012
05/2
5/2
012
Vola
tility
(%
)
Invesco Balanced-Risk Allocation Fund A
60% MSCI World/40% JPM Europe Govt. Bond
24
Euroland
Hongkong
Japan
UK
US Large-Cap
US Small-Cap
Equities
Invesco Balanced-Risk Allocation Fund Targeted Active Positioning and Risk Allocation as of 30 June 2012
Source: Invesco analysis. As of 30/06/12.
Explanatory notes: The indicators (overweight, underweight, neutral) are in relation to the strategic allocation for the fund. The total target (levered) portfolio risk from the strategic allocation is 8% (approx. 2.7% from each asset class or one third of 8%, in accordance with the equal risk contribution concept). The 8 % target portfolio risk from the strategic allocation is expanded to a range of 6% - 10% for the active positioning to reflect over- and underweight positions. Target risk weights are derived from the target risk from each asset class. Asset class weights represent the month-end asset class exposure.
Risk is measured as standard deviation. Can be implemented with physical securities, derivatives or financially linked instruments.
25
Australian Gov’t
Canadian Gov’t
German Bunds
Japanese Gov’t
UK Gov’t
US Treasuries
Overweight position Neutral position ● Underweight Position
Complex Target Marginal Risk
Contribution Target Risk Allocation
Target Notional Asset Weight
Equities 3.15 36.35 30.76
Fixed Income 2.92 33.69 81.84
Commodities 2.60 29.95 27.21
Total 8.67% 100.00% 139.81
Fixed Income Commodities
Agriculture Energy
Diversified Agriculture
● Brent Crude
Precious Metals
WTI Crude
Gold Industrial Metals
Copper
4. Additional Information
Invesco Balanced-Risk Allocation Fund Targeted Notional Exposure Since Fund Inception*
Source: Invesco analysis. *Fund Inception: 31/08/09/ Data from 09/09 to 06/12.
27
130%
140%
150%
160%
170%
180%
190%
200%
09.0
9
10.0
9
11.0
9
12.0
9
01.1
0
02.1
0
03.1
0
04.1
0
05.1
0
06.1
0
07.1
0
08.1
0
09.1
0
10.1
0
11.1
0
12.1
0
01.1
1
02.1
1
03.1
1
04.1
1
05.1
1
06.1
1
07.1
1
08.1
1
09.1
1
10.1
1
11.1
1
12.1
1
01.1
2
02.1
2
03.1
2
04.1
2
05.1
2
06.1
2
To
tal
No
tio
nal
Exp
osu
re (
%)
0%
20%
40%
60%
80%
100%
09/0
9
10/0
9
11/0
9
12/0
9
01/1
0
02/1
0
03/1
0
04/1
0
05/1
0
06/1
0
07/1
0
08/1
0
09/1
0
10/1
0
11/1
0
12/1
0
01/1
1
02/1
1
03/1
1
04/1
1
05/1
1
06/1
1
07/1
1
08/1
1
09/1
1
10/1
1
11/1
1
12/1
1
01/1
2
02/1
2
03/1
2
04/1
2
05/1
2
06/1
2% T
arg
ete
d A
sset
Cla
ss
Weig
hts
of
No
tio
nal
Exp
osu
re
Stocks Bonds Commodities
Invesco Balanced-Risk Allocation Fund Benefits
Please refer to the risk warnings at the end of this presentation and included in the Prospectus.
28
Seeks to balance the
risk across economic
outcomes by investing in
asset classes that are
expected to perform
differently in each
economic environment.
Unlike traditional
balanced portfolios in
which equity risk is
typically dominant, the
fund aims to limit
downside risk by
weighting each asset
class so that it
contributes a relatively
equal amount of risk to
the portfolio over time.
In addition, a tactical
asset allocation model is
applied to enhance
return potential.
Invesco Balanced-Risk Allocation Fund Fund Facts
Fund name Invesco Balanced-Risk Allocation Fund
Fund manager
Invesco Global Asset Allocation team, Atlanta
Lead, Scott Wolle, CFA
CIO, Invesco Global Asset Allocation
Launch date September 2009
Domicile Luxembourg
Legal structure Sub-fund of Invesco Funds, SICAV with UCITS status
Base currency EUR
Unit type Accumulation and distribution
Reference index 60% MSCI World / 40% JPM Europe Government Bond
Available share classes
Unit type Ccy Initial charge Annual mgmt. fee
Minimum investment
ISIN codes
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
29
*Base currency hedged.
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 30.04.12, unless otherwise stated. Please do not redistribute this document.
This marketing document does not form part of any prospectus. Whilst great care has been taken to ensure that the information contained herein is accurate, no responsibility can be accepted for any errors, mistakes or omissions or for any action taken in reliance thereon.
Past performance is not an indication of future performance, provides no guarantee for the future and is not constant over time. The performance data shown does not take account of the commissions and costs incurred on the issue and redemption of units. Any reference to a ranking, a rating or an award provides no guarantee for future performance results and is not constant over time.
This document is not an invitation to subscribe for shares in the fund and is by way of information only. It is not intended to provide specific investment advice including, without limitation, investment, financial, legal, accounting or tax advice, or to make any recommendations about the suitability of the fund(s) for the circumstances of any particular investor. You should take appropriate advice as to any securities, taxation or other legislation affecting you personally prior to investment. Asset management services are provided by Invesco in accordance with appropriate local legislation and regulations. www.invescoeurope.com
The value of investments and the income from them can go down as well as up (this may partly be the result of exchange rate fluctuations in investments which have an exposure to foreign currencies) and investors may not get back the amount invested. Whilst the overall risk of the Fund intends to be consistent with that of a balanced portfolio of equity and debt securities, this may not be achieved. The Fund will make significant use of financial derivatives for investment purposes in excess of the value of the portfolio that could 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 the value of its net assets. The Fund will gain exposure to commodities to diversify the risk of the fund. Commodities are generally considered to be high risk 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 the borrower to repay the interest and capital on the redemption date. If you are unsure of any of these risks please contact your advisor.
Opinions and forecasts are subject to change without notice. For more information on our funds, please refer to the most up to date relevant fund and share class-specific Key Investor Information Documents, the latest Annual or Semi Annual Reports and the latest Prospectus. This information is available using the contact details of the issuer and is without charge. The information is also available from our website www.invescoeurope.com
This document is issued in Switzerland by Invesco Asset Management (Schweiz) AG, Stockerstrasse 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. The legal offering documents (fund & share class specific Key Investor Information Document, prospectus, annual & semi-annual reports, articles and trustee deeds) are available free of charge at our website www.invesco.ch and from the issuer. Paying agent for the funds registered for sale in Switzerland: BNP PARIBAS SECURITIES SERVICES, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002 Zurich.
Important Information
30