Invesco Fixed Income Invesco Active Multi-Sector Credit Fund Luxembourg Domiciled SICAV with UCITS status

Transcription

1 Invesco Fixed Income Invesco Active Multi-Sector Credit Fund Luxembourg Domiciled SICAV with UCITS status February 2015 This marketing document is for Professional Clients and Financial Advisers in Continental Europe, Qualified Investors in Switzerland and Professional Clients in Dubai, Jersey, Guernsey, Isle of Man and the UK. This document is not for consumer use. Please do not redistribute.

2 Invesco Ltd. Clarity of purpose with a mission aligned with our clients Global Reach Over 750 investment professionals in more than 20 countries Backed by the strength of Invesco Ltd. with US$789.6 billion in AUM globally Client Focus Business focused exclusively on asset management Processes aligned with goal of producing strong, long-term investment results Competitive rewards aligned with client success High- Performance Culture Source: Invesco. As of 30 September A culture of accountability and ownership around performance Multiple levels of management engagement regarding performance and risk Comprehensive risk management and attribution processes

3 Invesco Fixed Income Overview Global perspective, breadth of resources, and significant scale Global Investment Team Footprint Scale of platform: US$242.8 billion AUM Chicago London New York London Louisville Atlanta Houston Mumbai Shenzhen Tokyo Hong Kong Depth of resources: 220 professionals including 160 investment professionals Global footprint: 10 locations Rates 19 Currency 14 Credit 72 PM 77 Source: Invesco, as of 31 December Subject to change without notice. Invesco Fixed Income does not include all the fixed income entities within Invesco Ltd., and is not limited to those fixed income assets within the GIPS -compliant firm Invesco Worldwide; therefore, the assets under management reported here for Invesco Fixed Income may not match the fixed income assets reported in the Invesco earnings statement. 3

4 Invesco Active Multi-Sector Credit Fund Luxembourg Domiciled SICAV with UCITS status

5 Active Multi-Sector Credit Evergreen solution for credit exposure over a full cycle Client Need Strong need for income and return Client Challenges Ability to achieve income and return objective while managing risk + + Approach Active management and asset flexibility provide potential to generate income and alpha and avoid undue risk 5 IFI Solution A discretionary, multi-sector strategy targeting favorable outcomes in income, total return, and risk from a balance of tactical beta capture and discriminating security selection in core credit asset classes For illustrative purposes only.

6 Invesco Active Multi-Sector Credit Fund Design Combining structure and discretion Strategic Allocation Tactical Asset Allocation Bands Investment Grade Max Allocation Investment Grade Corporates Emerging Market Debt 42% 15% Investment Grade 60% 30% 30% Non-Investment Grade 40% 30% Min Allocation Opportunistic Credit / Cash & Cash Equivalents Bank Loans* 29% Non-Investment Grade 15% 10% 15% 6 High Yield Bonds 14% Risk parity across sectors ensures return is driven by high-conviction tactical allocation and security selection decisions Investment Grade Corporates 1 Opportunistic Credit defined as Municipal Bonds, Collatoralised Mortgage Backed Securities and other credit assets as chosen at the discretion of the fund managers Well-defined tactical allocation ranges establish opportunity for portfolio managers to exercise discretion Source: Invesco, 31 December For illustrative purposes only. There can be no assurance that the fund s actual investment allocations will be within the minimum and maximum investment allocation boundaries described herein or will match the investment parameters set forth above. *Please note: Bank Loans cannot be invested in directly by the fund. Exposure to eligible loans will generally be taken via investment in Collateralised Loan Obligations (CLOs), collective investment schemes, Floating Rate Notes (FRNs) as well as swaps and other derivatives on UCITS eligible loan indices. 0% Emerging Market Debt Bank Loans* 0% High Yield Bonds Opportunistic Credit 1 Cash & Cash Equivalents

7 Active Multi-Sector Credit Team An interconnected and inclusive approach with clear accountability Active Multi-Sector Credit Portfolio Team Client Mgmt Responsibilities Final portfolio decisions and aggregate performance ownership Asset allocation across sectors Aggregate risk management Joseph Portera Lead Portfolio Manager 33 Years Experience Carolyn Gibbs Senior Portfolio Manager & Strategist 29 Years Experience Erik Jensen Senior Portfolio Manager 39 Years Experience Greg Freer Co-Head, Investment Solutions 20 Years Experience Credit Sector Teams Invesco Strategy Team (IST) High Yield Bonds Scott Roberts Co-Head 20 Investment Professionals Emerging Market Debt Jack Deino Head 15 Investment Professionals Bank Loans* 29 Investment Professionals 1 Investment Grade Mike Hyman Head 25 Investment Professionals Responsibilities Security selection Sub-sector allocation Source: Invesco. As of 31 December Subject to change without notice. Years subject to rounding. *Please note: Bank Loans cannot be invested in directly by the fund. Exposure to eligible loans will generally be taken via investment in Collateralised Loan Obligations (CLOs), collective investment schemes, Floating Rate Notes (FRNs) as well as swaps and other derivatives on UCITS eligible loan indices. 1 The Banks Loans team provide research to the Active Multi-Sector Credit Portfolio team so that they can implement exposure to eligible loans. 7 Rob Waldner Head of Global Macro and Chief Strategist Greg McGreevey CEO Invesco Fixed Income Mark Matthews Head of Global Quantitative Research Raymund Uy Head of Currencies Tony Wong Head of Global Research Michael Hyman Head of Global Investment Grade Credit Carolyn Gibbs Senior Portfolio Manager & Strategist Joseph Portera Head of Global High Income Scott Baskind Head of Global Senior Loans Responsibilities Macro view Risk positioning

8 Invesco Fixed Income Process Overview Structural Formulation Proven process for forecasting market direction for risk positioning 8 Top- Down Bottom- Up Risk Management Cyclical Analysis Tactical Risk Positioning Portfolio Management High Conviction Ideas Security Analysis Industry and Country Selection Source: Invesco, as of 31 December For illustrative purposes only. Portfolio Attribution Active sector-rotation decisions Portfolio management team responsible for leveraging platform breadth Risk management and attribution examined through different lenses at every process stage Deep, global research team agnostically finding value

9 Active MSC Investment Process Top-down process defines market directional beta and optimal risk positioning Seasoned Macro Professionals Structural Economic Analysis Cyclical Analysis Fundamentals Technicals Valuation Investment Strategy Team ( IST ) Structured and proprietary macro analysis and strategy Structural review of long-term economic trends to establish 3 5 year views Assessment of cyclical factors expected to drive growth and inflation to determine 12- to 18-month views 9 Inflation, growth, and financial outlook for G20 Relative value allocation of beta risk leading to targeted views for credits, rates, and currencies Aggregate risk positioning Source: Invesco, as of 31 December For illustrative purposes only. Proprietary research across fundamentals, technicals and valuation to establish short term view Examination of rates, currencies, and credit to determine optimal risk positioning and tactical asset allocation

10 Active MSC Investment Process Bottom-up process identifies relative value opportunities across countries, industries, companies and issuers Specialized Credit Research Teams Relative value score (A to E) identifies level of conviction for sub-sector, country, issuer, and security Thematic and opportunistic ideas Sector Heads Focused security and sector-level research and analysis Asset modeling and monitoring based on standardized scoring Global coordination of credit teams to determine sub-sector opportunities and leverage views across the capital structure Credit analysis informed by top down views 10 Sector Themes, Catalysts and Scorecards Investment Grade Emerging Markets Issuer Fundamentals and Risk Bank Loans High Yield Source: Invesco, as of 31 December For illustrative purposes only. Industry and Country Characteristics Opportunistic Sector PMs and research analysts synthesize research into thematic and high-conviction ideas

11 Invesco Fixed Income Overview Process integrates views from multiple sources A Disciplined, Repeatable Process Fundamentals Teams IST Quantitative research 11 Action Outcome Week 1 Week 2 Week 3 Week 4 Econometric and market analysis Structural and cyclical analysis, market performance Bottom-up sector and relative-value analysis IST Senior sector heads Senior research analysts Excess return forecasts Debate and analyze topdown and bottom-up views IST Valuation IST Senior sector heads Portfolio Managers Draft model portfolio and risk positioning Source: Invesco, as of 31 December For illustrative purposes only. Finalize credit, rate and currency, views and themes Tactical asset allocation, risk positioning, model portfolio Process drives consistency in analysis of fundamentals, technicals, and valuations across rates, currencies, and credit Provides basis for recommended weighting of targeted sectors Culture of inclusion ensures full potential of Invesco Fixed Income s global resources provide actionable insights Structured process, with flexibility to adapt to market events

12 Invesco Fixed Income Overview Our Credit, Rates and Currency views Bullish A B C D E Bearish View B C D Credit IG Muni HY Muni High Yield Bank Loans CMBS EM Corporates Global IG US IG EM Hard ABS Non Agency RMBS EM Local Rates Currency Source: Invesco, as of January For illustrative purposes only. These are views of the presenters as of January 2015 and subject to change without notice. 12 Mexico India Indonesia Australia Mexico Indonesia Germany Canada Japan Italy China Brazil S. Korea China Russia India Brazil South Korea Russia Turkey UK New Zealand New Zealand Thailand Japan UK South Africa US Colombia Australia Taiwan Canada Swiss South Africa Singapore Europe

13 Active MSC Investment Process Portfolio construction completed by experienced PMs Our investment ideas are sourced from macro and sector specific teams Our Views Portfolio Impact Macro IST Views Total portfolio risk risk Split across macro risks risks factors Sector allocation Client Portfolio Sector Views Credit Sector themes positioning Sector Credit positioning themes Portfolio Manager Targeted Objective 13 Security Selection Capture winners Capture winners Avoid losers Avoid losers Primary market Pinpoint? opportunities market opportunities Source: Invesco, as of 31 December For illustrative purposes only.

14 Invesco Advantage for Active MSC Management Team and Platform Strength Multi-Sector Approach Integrated Risk Management Interconnected global team sources relative-value opportunities Clearly defined roles and accountabilities Alignment to client interests Full-cycle design applies risk parity for strategic allocation Active tactical asset allocation drives value Process ensures consistency in asset allocation, security selection, and portfolio construction Risk budgeting and management through multiple lenses Holistic risk management through real time portfolio and sleeve analytics Source: Invesco, as of 31 December For illustrative purposes only. As with all investments, there are associated inherent risks. Please also refer to the important information on the last slide of this presentation. 14

15 Invesco Active Multi-Sector Credit Fund Current Positioning

16 Volatility of Asset Class Returns Requires Management Over a Full Cycle Relative Rank Annual Returns (%) Yield to Maturity (%) Investment Grade High Yield Emerging Markets Bank Loans* YR Treasuries Total Return (%) Yield (%) Past performance is not a guide to future returns. Barclays, S&P LSTA, Credit Suisse, Bloomberg as of 31 December Returns show annualized gross performance. Relative rank shows performance from best to worst, 1 being the best within each period. Performance of respective indices: Investment Grade Barclays Global Aggregate Credit USD Hedged, High Yield Barclays Global High Yield USD Hedged, Emerging Markets Barclays EM Hard Currency USD Hedged and Bank Loans S&P Leveraged Loan Index. An investment cannot be made in an index. *Please note: Bank Loans cannot be invested in directly by the fund. Exposure to eligible loans will generally be taken via investment in Collateralised Loan Obligations (CLOs), collective investment schemes, Floating Rate Notes (FRNs) as well as swaps and other derivatives on UCITS eligible loan indices. 16

17 Volatility of Asset Class Returns Also Needs to be Managed Intra-Cycle Relative Rank Monthly Returns (%) Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Investment Grade High Yield Emerging Markets Bank Loans YR Treasuries Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Total Return (%) Yield (%) Past performance is not a guide to future returns. Source: Barclays, S&P LSTA, Bloomberg as of 31 December Returns show gross performance. Relative rank shows performance from best to worst, 1 being the best within each period. Performance of respective indices: Investment Grade Barclays Global Aggregate Credit USD Hedged, High Yield Barclays Global High Yield USD Hedged, Emerging Markets Barclays EM Hard Currency USD Hedged and Bank Loans S&P Leveraged Loan Index. An investment cannot be made in an index. *Please note: Bank Loans cannot be invested in directly by the fund. Exposure to eligible loans will generally be taken via investment in Collateralised Loan Obligations (CLOs), collective investment schemes, Floating Rate Notes (FRNs) as well as swaps and other derivatives on UCITS eligible loan indices. 17

18 Invesco Active Multi-Sector Credit Fund Asset allocation Current Tactical Bands Asset allocation 6.4% 1.3% Investment Grade Range Non-Investment Grade Range 45% 30% - 70% 40% 50% 60% 70% 48% 30% - 60% 30% 40% 50% 60% 28.8% 12.3% 32.4% Sector Limits Investment Grade Corporates Emerging Market Debt 32.4% 30% - 60% 30% 40% 50% 60% 12.3% 0% - 30% 0% 10% 20% 30% 18.8% Bank Loans* 28.8% 15% - 40% 15% 20% 25% 30% 35% 40% 18 Investment Grade Corporates High Yield Bonds Opportunistic Credit 1 Emerging Market Debt Bank Loans* Cash & Cash Equivalents High Yield Bonds 18.8% 0% - 30% 0% 10% 20% 30% Opportunistic Credit 1 6.4% 10% 0% 5% 10% Source: Invesco, as at 31 December Portfolio allocation is subject to change and current allocation may differ. 1 Opportunistic Credit defined as Municipal Bonds, Collatoralised Mortgage Backed Securities and other credit assets as chosen at the discretion of the fund managers. *Please note: Bank Loans cannot be invested in directly by the fund. Exposure to eligible loans will generally be taken via investment in Collateralised Loan Obligations (CLOs), collective investment schemes, Floating Rate Notes (FRNs) as well as swaps and other derivatives on UCITS eligible loan indices.

19 Invesco Active Multi-Sector Credit Fund Characteristics Fund Index Duration (yrs) Average Maturity (yrs) Gross Nominal Yield (%) Average Quality BBB BBB- Credit quality distribution AAA AA A BBB BB B % NAV % Active Issuer domicile (Top 10 by %) Top 5 industries (%)* Source: Invesco, as of 31 December *Barclays Level four classifications; excludes funds. Portfolio characteristics are subject to change without notice United States Cayman Islands United Kingdom Mexico Japan China Germany Brazil Hong Kong Turkey Electric 15% Communications 17% Energy 10% Asset backed 34% Banking 24%

20 Invesco Active Multi-Sector Credit Fund Summary of terms Objective and Strategy Structure The fund aims to provide a total return over a full market cycle. Luxembourg domiciled SICAV with UCITS status Strategic Allocations 29% 15% Investment Grade Emerging Markets Debt (0% 30%) Investment Grade Corporates (30% 60%) 40% 70% 14% 42% Non-Investment Grade High Yield Bonds (0% 30%) Bank Loans* (15% 40%) 30% 60% Tactical Positioning Key Characteristics Share classes +/- 15% between investment grade and non-investment grade strategic portfolio allocations. May take opportunistic positions in up to 10% in other credit assets (MBS, CLOs etc.) and tactical positions in cash & cash equivalents up to 15%. Non-US $ Exposure < 5% Duration Exposure < 5 years Issuer Exposure <5% Industry Limit <20% Please speak with your local sales representative. Benchmark Volatility Target Liquidity Settlement Investment Team 20 Benchmark agnostic Less than that of High Yield, which is 10.6%, historically. Daily (Dealing cut off time 12 noon Irish time each business day) Trade date + 3 days Lead: Joseph Portera, Erik Jensen and Carolyn Gibbs Source: Invesco as of 31 December Subject to change without notice. *Please note: Bank Loans cannot be invested in directly by the fund. Exposure to eligible loans will generally be taken via investment in Collateralised Loan Obligations (CLOs), collective investment schemes, Floating Rate Notes (FRNs) as well as swaps and other derivatives on UCITS eligible loan indices.

21 Important information (1) This marketing document is for Professional Clients and Financial Advisers in Continental Europe, Qualified Investors in Switzerland and Professional Clients in Dubai, Jersey, Guernsey, Isle of Man and the UK. This document is not for consumer use. Please do not redistribute. Data as at 31 December 2014, unless otherwise stated. The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Past performance is not a guide to future returns. Where Invesco has expressed views and opinions, these may change. Where securities are mentioned in this document they do not necessarily represent a specific portfolio holding and do not constitute a recommendation to purchase, hold or sell. Debt instruments are exposed to credit risk which is the ability of the borrower to repay the interest and capital on the redemption date. Changes in interest rates will result in fluctuations in the value of the Invesco Active Multi-Sector Credit Fund. The fund will invest in derivatives (complex instruments) which will be leveraged resulting in large fluctuations in the value of the Invesco Active Multi-Sector Credit Fund. As a large portion of the Invesco Active Multi-Sector Credit Fund is invested in less developed countries, you should be prepared to accept significantly large fluctuations of the value of the fund. The Invesco Active Multi-Sector Credit Fund may hold a significant amount of debt instruments which are of lower credit quality and may result in large fluctuations of the value of the fund. 21 The fund s performance may be adversely affected by variations in the exchange rates between the base currency of the fund and the currencies in which the investments are made. The distribution and the offering of the Invesco Active Multi-Sector Credit Fund or its share classes in certain jurisdictions may be restricted by law. Persons into whose possession this document may come are required to inform themselves about and to comply with any relevant restrictions. This does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. Persons interested in acquiring the Invesco Active Multi-Sector Credit Fund should inform themselves as to (i) the legal requirements in the countries of their nationality, residence, ordinary residence or domicile; (ii) any foreign exchange controls and (iii) any relevant tax consequences. The Invesco Active Multi-Sector Credit Fund is available only in jurisdictions where its promotion and sale is permitted. For the purposes of UK law, the Invesco Active Multi-Sector Credit Fund is a recognised scheme under section 264 of the Financial Services & Markets Act The protections provided by the UK regulatory system, for the protection of Retail Clients, do not apply to offshore investments. Whilst great care has been taken to ensure that the information contained herein is accurate, no responsibility can be accepted for any errors, mistakes or omissions or for any action taken in reliance thereon. This marketing document is not an invitation to subscribe for shares in the fund and is by way of information only, it should not be considered financial advice. 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 by way of information only. Asset management services are provided by Invesco in accordance with appropriate local legislation and regulations.

22 Important information (2) Please be advised that the information in this document is referring to share class A accumulation EUR. 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 suit every investor. There may be differences in fee structures, in minimum investment amounts, etc. Please check the most recent version of the fund prospectus in relation to the criteria for the individual share classes and contact your local Invesco office for full details of the fund registration status in your jurisdiction. Please refer to the most up to date relevant fund and share class-specific Key Investor Information Document for more information on our funds. Further information on our products is available using the contact details shown. Denmark: The fund is not registered for public distribution in these jurisdictions. This document is provided only at the request of a Professional Client or Qualified Investor and is intended for the sole use of this person. Portugal: The fund's shares are not all currently registered for sale. As a consequence, the unregistered shares may not be offered or distributed by way of public advertisement or public offer in this/these jurisdiction(s). The unregistered shares may only be offered and the legal offering documents (KIID, prospectus, annual reports) and marketing materials of the fund may only be distributed in this/these jurisdiction(s) without public solicitation and in compliance with the private placement rules set forth in the laws, rules and regulations of the jurisdiction concerned. Germany, Austria and Switzerland: This document is issued in Germany by Invesco Asset Management Deutschland GmbH regulated by Bundesanstalt für Finanzdienstleistungsaufsicht. This document is issued in Austria by Invesco Asset Management Österreich GmbH and in Switzerland by Invesco Asset Management (Schweiz) AG. Subscriptions of shares are only accepted on the basis of the most up to date legal offering documents. 22 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 and in hardcopy and local language from the issuers: Invesco Asset Management Deutschland GmbH, An der Welle 5, D Frankfurt am Main, Invesco Asset Management Österreich GmbH, Rotenturmstrasse 16-18, A-1010 Wien, and Invesco Asset Management (Schweiz) AG, Talacker 34, CH 8001 Zürich, who acts as a representative for the funds distributed in Switzerland. Paying agent for the fund distributed in Switzerland: BNP PARIBAS SECURITIES SERVICES, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002 Zürich. Dubai: Issued in Dubai by Invesco Asset Management Limited, PO Box , DIFC Precinct Building No 4, Level 3, Office 305, Dubai, United Arab Emirates. Regulated by the Dubai Financial Services Authority. Jersey and Guernsey: Issued in Jersey and Guernsey by Invesco International Limited, 2nd Floor, Orviss House, 17a Queen Street, St Helier, Jersey, JE2 4WD. Regulated by the Jersey Financial Services Commission. In Guernsey, the fund can only be promoted to Professional Clients. Isle of Man: Issued in the Isle of Man by Invesco Global Asset Management Limited, George s Quay House, 43 Townsend Street, Dublin 2, Ireland. Regulated in Ireland by the Central Bank of Ireland. The Invesco Active Multi-Sector Credit Fund, is an unregulated scheme that cannot be promoted to retail clients in the Isle of Man. The participants in the scheme will not be protected by any statutory compensation scheme. UK: Issued in the UK by Invesco Global Investment Funds Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK. Authorised and regulated by the Financial Conduct Authority.