Invesco Funds Series 3 Interim Report (Unaudited) For the six months ended 31 May 2015

Transcription

1 Invesco s Series 3 Interim Report (Unaudited) For the six months ended 31 May 2015

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3 Health Care 01 Investment Policy and Description of the Series 02 Investment Adviser s Report on behalf of the Manager 03 Performance Record 03 Price and Income Record Portfolio Statement 07 Changes in the Composition of the Portfolio Technology 01 Investment Policy and Description of the Series 08 Investment Adviser s Report on behalf of the Manager 09 Performance Record 09 Price and Income Record Portfolio Statement 12 Changes in the Composition of the Portfolio 13 Balance Sheet 31 May Balance Sheet 30 November Balance Sheet 31 May Income Statement 31 May Income Statement 30 November Income Statement 31 May Statement of Changes in Net Assets attributable to holders of Redeemable Participating Shares 31 May Statement of Changes in Net Assets attributable to holders of Redeemable Participating Shares 30 November Statement of Changes in Net Assets attributable to holders of Redeemable Participating Shares 31 May Notes to the Financial Statements 27 Statement of the Manager s and Trustee s Responsibilities 28 General Information Invesco s Series 3

4 Investment Policy and Description of the Series Investment Objectives and Policies Health Care (the ) aims to achieve long- term capital growth by investing in healthcare companies throughout the world. The Manager ( Asset Management Limited ) will invest principally in four different sectors of the healthcare market, these being pharmaceuticals, biotechnology, healthcare services and medical technology and supplies. The Manager will seek to achieve the investment objective by investing primarily in equity or equity related securities. At least 70% of the s total assets (without taking into account ancillary liquid assets) will be invested in healthcare companies throughout the world. Technology (the ) aims to achieve long-term capital growth by investing in technology companies throughout the world. For the purposes of the, a technology company is one which operates in fields such as information processing (including computer systems, software development, communication systems and instrumentation development), telecommunications, information services, internet related technology and services, medical and healthcare technology and general electronics. The Manager will seek to achieve the investment objective by investing primarily in equity or equity related securities. At least 70% of the s total assets (without taking into account ancillary liquid assets) will be invested in technology companies throughout the world. While the technological capability and quality of product is an important factor in investment selection, the decisive factor in selecting investments will be the confidence that the Manager has in the ability of the relevant company s management to achieve its goals and objectives. The may invest in any recognised Market. Description of the Series The Invesco s Series 3 (the Series ) is a multi-portfolio Irish unit trust comprising Health Care and Technology (the s ). The Series is authorised by The Central Bank in Ireland as a UCITS under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011, (as amended) and by the Hong Kong Securities and Futures Commission (SFC) under the Hong Kong Securities and Futures Ordinance (Cap. 571) and has been recognised by The Financial Services Authority in the United Kingdom under Section 264 of the Financial Services and Markets Act 2000 (the Act ). The s also endeavour to comply with regulatory standards of the other jurisdictions where the s are authorized for distribution. The s issue units to unitholders. As per the consolidated prospectus, these units are referred to as Shares and the unitholder is referred to as the Shareholder throughout these Financial Statements. Both s are funds in the Invesco range of s managed by Invesco Global Asset Management Limited. Asset Management Limited is an indirect wholly-owned subsidiary of Invesco Ltd. Both s are approved by the Central Bank of Ireland. Both s are also approved by the SFC. In giving authorisation for the s the SFC does not take responsibility for the financial soundness of a fund nor for the correctness of any statements made or opinions expressed in this regard. The s are not registered under the United States Investment Company Act of 1940 (as amended) and Shares in the s ( Shares ) have not been registered under the United States Securities Act of 1933 (as amended). Accordingly, Shares may not be offered, sold or delivered in the United States or to US Persons as defined in the current Prospectus of the Series (the Prospectus ). Share prices are available through the Invesco internet site (for Shareholders in Hong Kong please refer to and, if required by local law or regulation, published in local leading financial newspapers including, in the case of Hong Kong, the Hong Kong Economic Times, the South China Morning Post and the Hong Kong Economic Journal. Share prices are currently also available from Reuters and Bloomberg. Any investment in the s should be considered long-term. There can be no guarantee that the amounts subscribed for Shares will be ultimately realised. Changes in rates of exchange between currencies may cause the value of an investment in the s to diminish or increase. This report to Shareholders does not constitute an offer or invitation to purchase Shares in either of the s. An updated Consolidated Prospectus for Invesco s Series 1, 2, 3, 4, 5, 6 and the Invesco Series was issued on 19 May This contains all current and relevant information (as at the date of issue) regarding the Series and other s within the Invesco s Series 1, 2, 3, 4, 5, 6 and the Invesco Series. This report to Shareholders has been prepared on the basis of the Prospectus. If you wish to receive a copy of this Prospectus please contact any Invesco office. Charges Share Launch Date Annual Annual Annual Distributor Administration Fee Fee Actual % % % Management Fee Annual Trustee Fee Max % Health Care A-AD Shares AA 01/03/ B-AD Shares AA 07/04/ C-AD Shares AA 03/03/ Z-AD Shares AA 21/08/ Technology A-AD Shares AA 03/01/ B-AD Shares AA 07/04/ C-AD Shares AA 13/01/ Z-AD Shares AA 21/08/ Distribution Frequency AA = Annual The Manager s annual fee is based on the daily net asset value of both s and is paid monthly. The Manager will also be paid a fee in respect of the duties as Administrator ( Asset Management Limited ) and Registrar ( Asset Management Limited ) for each. The Administration fee will be calculated daily and will be paid monthly on the last business day of each month at the rates set out above based on the net asset value of each Share Class of each on each business day. The charges are deductible from the income of each or from capital in the event of an income shortfall. The Manager may pay a portion of it s administration fees to the Sub- Administrator ( BNY Mellon Services (Ireland) Limited) in consideration for the Sub-Administrator providing certain administrative functions to the funds. The Trustee ( BNY Mellon Trust Company (Ireland) Limited ) will be paid a fee calculated on a sliding scale to a maximum rate of %* per annum of the net asset value of each class of each Share of the on the last business day of the month and paid monthly. The assets of a are exclusively available to satisfy the rights of Shareholders in relation to that and the rights of creditors whose claims have arisen in connection with the creation, operation or liquidation of that. * Up to 31 December 2014 the Maximum Trustee fee charged was %. Effective from 1 January 2015 the Maximum Annual Trustee fee was reduced to %. 01 Invesco s Series 3

5 Health Care Investment Adviser s Report on behalf of the Manager During the six months to end 31 May 2015, the s A Shares rose by 10.60% (US$, total return), outperforming its benchmark, the MSCI World Health Care Index, which returned 8.42%. The slightly lagged its peer group sector, which rose by an average of 11.26%, putting the in the second quartile for the period. As global growth remained subdued during the six months ending 31 May 2015, regional central bank policies and economic trends continued to diverge, leading to increased market volatility and a significantly stronger US dollar. Weak growth in China, Japan and Europe, persistently low oil prices, and the possibility of a change in the US Federal Reserve s ( FED ) stance on interest rates weighed on investors during the period, as did concerns that Greece would fail to reach an agreement with the Eurozone on a financial bailout plan. Investor fears were eventually eased as the European Central Bank introduced its long awaited quantitative easing program. Conversely, as many expected, the FED signaled that it was prepared to increase short-term interest rates, likely sometime in the second half of However, mixed US economic data, including much weaker than expected first quarter GDP could delay the timing of the FED s policy action. Despite the volatility during the period, the major US and global indexes produced gains, and the MSCI World Index also had a positive return. Within the index, the health care and consumer discretionary sectors delivered strong gains, while the utilities and energy sectors posted losses. Relative to the MSCI World Health Care Index, stock selection in the biotechnology and pharmaceutical industries positively impacted fund performance during the period. The s overweight in drug retail and health care facilities also positively impacted the s performance relative to the benchmark. An underweight and stock selection in managed care negatively impacted the s relative return. In a rising market, the s cash position also position detracted from results relative to the index. The top individual contributor to the s return was Salix Pharmaceuticals, a company that specializes in developing and marketing products for the prevention and treatment of gastrointestinal disorders. Reflecting the ongoing trend towards consolidation in the sector, Valeant (not a fund holding) completed its approximately $11 billion acquisition of Salix in April. The largest detractor during the period was Alexion Pharmaceuticals, a biopharmaceutical company that specializes in drugs for extremely rare blood and neurological diseases. During the period, the company made an offer to acquire Synageva BioPharma, another firm specializing in rare diseases. The acquisition is expected to strengthen the company s pipeline and diversify its product line; however, the offer was made at a significant premium to Synageva s share price. Investors viewed the deal price skeptically, and Alexion s shares sold off as a result. As part of our policy to manage risk, the held derivative instruments in the form of currency forwards in order to hedge our European currency exposure. Given the strength in the US dollar, the net cumulative effect of these derivative contracts was slightly positive for overall fund performance during the reporting period. Though we maintained an underweight in large-cap pharmaceuticals versus the benchmark, it was the s largest absolute industry exposure, and we increased our allocation to the industry over the course of the reporting period. The s largest overweight position relative to the benchmark was in the biotechnology industry. We continue to emphasize specialty pharmaceuticals and biotechnology stocks based on their generally robust in-line portfolios, compelling pipelines and our opinion that many of these companies could be targets of ongoing consolidation within the industry. We are primarily focused on companies with new product cycles, less reimbursement risk and less competition. At the end of the reporting period, the was primarily invested in US stocks, and the s non-us allocation was focused mainly on European large-cap pharmaceuticals, which had fewer patent expiration concerns than their US counterparts. Dated: 11 June 2015 Asset Management Limited 02 Invesco s Series 3

6 Health Care Performance Percentage change over: (All expressed in the share class base currency, mid to mid, gross income reinvested) Ccy Last 6 months Last 12 months Last 5 years (Cumulative) Health Care A-AD Shares USD Health Care B-AD Shares USD Health Care C-AD Shares USD Health Care Z-AD Shares USD n/a MSCI World Health Care Index (benchmark) USD Morningstar GIF OS Sector Equity Health Care* USD Source: Morningstar * For comparative purposes The Net Asset Value Information for 31 May 2015, 30 November 2014 and 31 May 2014 can be found on pages 13, 14 and 15. Price and Income Record The table below shows the highest and lowest NAV prices of Shares in the s in the last 10 years. There has never been an annual income distribution of the since its launch. The was redomiciled to Ireland on 15 September 1995 at a price of $18.96 per Share, excluding all managers initial charges. Highest Lowest Highest Lowest Highest Lowest Highest Lowest NAV Price NAV Price NAV Price NAV Price NAV Price NAV Price NAV Price NAV Price A-AD A-AD B-AD B-AD C-AD C-AD Z-AD Z-AD Calendar Shares Shares Shares Shares Shares Shares Shares Shares Year $ $ $ $ $ $ $ $ n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Figures to 30 June Source: Asset Management Limited Distributions, if any, are paid annually to A-AD, B-AD, C-AD and Z-AD Shareholders on or after 21 January and are set out in Note 8. Reports on the progress of the are published on or before 31 March and 31 July each year and shall be made available to Shareholders free of charge on request. The price of Shares and the income from them can go down as well as up. Please note that past performance is not necessarily a guide to future performance. 03 Invesco s Series 3

7 Health Care Portfolio Statement As at 31 May 2015 The Portfolio of Investments - (analysed by industrial sector) Fair Value of (Ordinary shares quoted unless otherwise stated) Value Investment Holding $ % PHARMACEUTICALS (55.77%) AbbVie Inc 320,399 21,617, ACADIA Pharmaceuticals Inc 98,882 3,970, Actavis plc 99,662 31,194, Agile Therapeutics Inc 136,462 1,318, Akorn Inc 70,412 3,181, AstraZeneca Plc 226,356 15,593, Bayer AG 95,756 13,919, Bristol-Myers Squibb Co 214,429 14,827, Cardinal Health Inc 72,123 6,356, Cempra Inc 50,819 1,844, DBV Technologies SA 142,509 3,391, Depomed Inc 155,498 3,217, Dyax Corp 90,186 2,385, Endo International Plc 117,967 9,783, Express Scripts Holding Co 113,501 10,127, GlaxoSmithKline Plc 475,755 21,304, Hikma Pharmaceuticals Plc 145,871 4,657, IGI Laboratories Inc 66, , Jazz Pharmaceuticals Plc 33,646 6,053, Johnson & Johnson 64,374 6,512, Keryx Biopharmaceuticals Inc 177,203 1,805, Lipocine Inc 230,310 1,625, McKesson Corp 39,574 9,414, Merck & Co Inc 281,127 16,783, Mylan NV 142,364 10,347, Neurocrine Biosciences Inc 78,482 3,355, Nippon Shinyaku Co Ltd 177,000 5,401, Novartis AG 233,966 24,381, Perrigo Co Plc 16,344 3,169, Pfizer Inc 455,737 15,695, Receptos Inc 21,218 3,497, Roche Holding AG 71,487 21,311, Sanofi 282,819 14,288, Sarepta Therapeutics Inc 52,882 1,346, Shire Plc 100,864 26,192, Supernus Pharmaceuticals Inc 252,643 3,403, Synergy Pharmaceuticals Inc 417,927 1,805, Teva Pharmaceutical Industries Ltd 205,543 12,505, Vanda Pharmaceuticals Inc 202,358 2,043, XenoPort Inc 135, , Zogenix Inc 1,052,807 1,568, ,450, BIOTECHNOLOGY (22.39%) Alder Biopharmaceuticals Inc 117,682 4,970, Alexion Pharmaceuticals Inc 51,998 8,638, AMAG Pharmaceuticals Inc 62,805 4,303, Amgen Inc 56,932 8,957, ARIAD Pharmaceuticals Inc 345,000 3,105, Avalanche Biotechnologies Inc 81,659 3,044, Biogen Inc 33,548 13,422, BioMarin Pharmaceutical Inc 110,577 14,083, Bluebird Bio Inc 45,953 8,843, Celgene Corp 125,183 14,387, Invesco s Series 3

8 Health Care Portfolio Statement (continued) As at 31 May 2015 The Portfolio of Investments - (analysed by industrial sector) Fair Value of (Ordinary shares quoted unless otherwise stated) Value Investment Holding $ % BIOTECHNOLOGY (22.39%) (continued) Celldex Therapeutics Inc 94,294 2,736, Gilead Sciences Inc 142,910 16,127, Incyte Corp 125,282 13,537, Medicines Co 112,146 3,154, Medivation Inc 50,686 6,671, Prothena Corp Plc 54,279 1,872, Puma Biotechnology Inc 8,209 1,642, Spark Therapeutics Inc 22,990 1,581, Tekmira Pharmaceuticals Corp 92,197 1,311, Vertex Pharmaceuticals Inc 102,920 13,112, ,504, HEALTHCARE-SERVICES (8.05%) Aetna Inc 98,092 11,420, Air Methods Corp 81,686 3,439, Community Health Systems Inc 156,270 8,582, HCA Holdings Inc 83,733 6,848, Tenet Healthcare Corp 75,879 4,025, UnitedHealth Group Inc 94,781 11,340, Universal Health Services Inc 51,466 6,684, ,342, HEALTHCARE-PRODUCTS (3.63%) Olympus Corp 189,200 6,484, ResMed Inc 130,501 7,653, Wright Medical Group Inc 344,145 9,422, ,561, ELECTRONICS (1.76%) Agilent Technologies Inc 75,503 3,152, Thermo Fisher Scientific Inc 63,894 8,315, ,468, RETAIL (1.44%) Raia Drogasil SA 290,300 3,352, Rite Aid Corp 693,438 6,025, ,378, SOFTWARE (0.90%) Allscripts Healthcare Solutions Inc 405,261 5,876, COMMERCIAL SERVICES (0.24%) Qualicorp SA 207,200 1,546, Total Value of Investments (Cost $456,234,611) 612,127, Open Forward Foreign Exchange Contracts Counterparty Maturity Date Unrealised Gain/(Loss) $ Value of % Gain Buy USD 333,777 Sell EUR 300,000 BNY Mellon 12/06/2015 4, Total unrealised gain on open forward foreign exchange contracts 4, Invesco s Series 3

9 Health Care Portfolio Statement (continued) As at 31 May 2015 The Portfolio of Investments - (analysed by industrial sector) Fair Value of (Ordinary shares quoted unless otherwise stated) Value Investment Holding $ % Open Forward Foreign Exchange Contracts (continued) Counterparty Maturity Date Unrealised Gain/(Loss) $ Value of % Loss Buy EUR 300,000 Sell USD 337,412 BNY Mellon 12/06/2015 (8,586) (0.00) Buy USD 5,774,507 Sell CHF 5,661,063 BNY Mellon 12/06/2015 (240,906) (0.04) Buy USD 4,297,914 Sell EUR 3,964,999 BNY Mellon 12/06/2015 (48,064) (0.01) Total unrealised loss on open forward foreign exchange contracts (297,556) (0.05) Total loss on open forward foreign exchange contracts (292,605) (0.05) Total Financial Assets 612,131, Total Financial Liabilities (including derivatives) (297,556) (0.05) Cash and Cash Equivalents (see Note 4 for details) 42,062, Adjustment from bid-market prices to mid-market prices 138, Other Net Current Liabilities (4,087,995) (0.62) Total Value of the at 31 May ,947, % of Analysis of total assets Total Assets Transferable securities admitted to an official stock exchange listing or dealt in on another regulated market Other assets Invesco s Series 3

10 Health Care Changes in the Composition of the Portfolio For the six months ended 31 May 2015 Purchases Cost $ Sales Proceeds $ Actavis plc 20,137,753 Salix Pharmaceuticals Ltd 12,443,529 Shire Plc 17,071,242 HCA Holdings Inc 8,447,590 Merck & Co Inc 16,679,125 Perrigo Co Plc 7,111,537 AstraZeneca Plc 16,393,697 Abbott Laboratories 6,638,496 Vertex Pharmaceuticals Inc 7,682,832 CVS Health Corp 6,321,387 AbbVie Inc 7,672,914 NPS Pharmaceuticals Inc 5,536,212 Teva Pharmaceutical Industries Ltd 6,945,798 ResMed Inc 4,690,325 Amgen Inc 4,424,627 Tenet Healthcare Corp 4,354,983 Rite Aid Corp 4,353,649 Biogen Inc 3,545,645 Avalanche Biotechnologies Inc 4,152,318 Incyte Corp 3,457,586 Depomed Inc 3,681,465 Medivation Inc 3,415,675 Bluebird Bio Inc 3,679,384 Vertex Pharmaceuticals Inc 3,285,699 Wright Medical Group Inc 3,536,673 Teva Pharmaceutical Industries Ltd 3,118,381 Medivation Inc 3,423,343 Express Scripts Holding Co 3,004,445 Supernus Pharmaceuticals Inc 3,376,891 Gilead Sciences Inc 2,692,542 Neurocrine Biosciences Inc 3,375,863 Alexion Pharmaceuticals Inc 2,479,244 Alder Biopharmaceuticals Inc 3,370,363 Intercept Pharmaceuticals Inc 2,469,919 Puma Biotechnology Inc 3,323,426 Exact Sciences Corp 2,384,377 Akorn Inc 3,245,329 Jazz Pharmaceuticals Plc 1,682,701 Novartis AG 3,243,904 Cardinal Health Inc 1,678,803 GlaxoSmithKline Plc 3,134,806 Puma Biotechnology Inc 1,538,006 Incyte Corp 3,068,768 Nippon Shinyaku Co Ltd 1,508,029 Medicines Co/The 3,025,055 BioMarin Pharmaceutical Inc 1,441,347 Roche Holding AG 2,705,909 Insmed Inc 1,007,291 AMAG Pharmaceuticals Inc 2,682,149 Other Sales 4,331,746 ARIAD Pharmaceuticals Inc 2,512,013 Total proceeds of sales since 01 December 2014 $98,585,495 Pfizer Inc 2,176,781 Prothena Corp Plc 2,160,869 Bayer AG 2,032,852 Other Purchases 32,177,686 Total cost of purchases since 01 December 2014 $195,447, Invesco s Series 3

11 Technology Investment Adviser s Report on behalf of the Manager Equity markets declined early in the period largely due to macroeconomic fears and a sharp drop in energy prices. US equities recovered before the end of calendar year 2014, however as lower oil prices contributed to consumer spending helping to boost economic growth. Even as other global regions, including Japan and Europe continued to struggle. As the calendar year 2015 began, the US economy continued to expand, albeit slowly, yet volatility remained as the potential impact of a strengthening dollar, a slowing Chinese economy and fluctuating energy prices weighed on investors. Concerns of Greece failing to reach an agreement with the Eurozone on a financial bailout plan also hampered equity markets. Investor fears were eventually eased as the European Central Bank introduced its long awaited quantitative easing program and energy prices stabilized. Despite the volatility during the period, markets continued their upward trajectory. In this environment, the MSCI World Index also had a positive return, and the health care, consumer discretionary and information technology sectors delivered the highest returns. During the six months to 31 May 2015, the s A Shares rose 4.17% (US$, total return) versus its benchmark, the MSCI World Information Technology (IT) index, which returned 4.24% over the same period. This placed the in the 3rd quartile of its peer group, the GIF OS Equity Technology sector, which rose by an average of 5.31%. Relative to the benchmark, stock selection in the software & services industry detracted from performance. Additional detractors from relative performance came from overweight in the media industry, as well as a modest cash position. By contrast, stock selection in the semiconductors & semiconductor equipment industry was the greatest contributor to fund performance. During the period under review, the had an overweight exposure, relative to the MSCI World IT index, in the health care equipment and services industries. The also had significant exposure to the pharmaceuticals, biotechnology & life sciences, retailing, media and consumer durables & apparel industries which have no benchmark exposure. By contrast, the was underweight in the technology hardware & equipment and software & services industries. The is currently biased toward growth technology, including biopharmaceuticals, and away from mature technology. It emphasizes innovation, transformative technology and opportunities, which we expect will take market share from mature companies, including the gamechanging technologies of mobile, security, cloud and biopharmaceuticals. We remain optimistic about technology spending given strong corporate balance sheets and companies needs to invest in more robust security solutions. We are also optimistic about future growth in the IT sector. In our opinion, the increased pace of health care innovation will continue to drive attractive long-term growth rates due to successful human genome mapping and recent productivity improvements, both of which fostered faster and more effective targeting of promising therapeutics. We attempt to harness multi-year secular trends, which should benefit long-term investors regardless of near-term economic strength. Dated: 17 June 2015 Asset Management Limited 08 Invesco s Series 3

12 Technology Performance Percentage change over: (All expressed in share class base currency, mid to mid, gross income reinvested) Ccy Last 6 months Last 12 months Last 5 years (Cumulative) Technology A-AD Shares USD Technology B-AD Shares USD Technology C-AD Shares USD Technology Z-AD Shares USD n/a MSCI Worldwide Information Technology Index (benchmark) USD Morningstar GIF OS Sector Equity Technology* USD Source: Morningstar * For comparative purposes The Net Asset Value Information for 31 May 2015, 30 November 2014 and 31 May 2014 can be found on pages 13, 14 and 15. Price and Income Record The table below shows the highest and lowest NAV prices of Shares in the s in the last 10 years. There has never been an annual income distribution on the since its launch. The was redomiciled to Ireland on 15 March 1993 at a price of $52.69 per Share, excluding all managers initial charges. Highest Lowest Highest Lowest Highest Lowest Highest Lowest NAV Price NAV Price NAV Price NAV Price NAV Price NAV Price NAV Price NAV Price A-AD A-AD B-AD B-AD C-AD C-AD Z-AD Z-AD Calendar Shares Shares Shares Shares Shares Shares Shares Shares Year $ $ $ $ $ $ $ $ n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Figures to 30 June 2015 Source: Asset Management Limited Distributions, if any are paid annually to A-AD, B-AD, C-AD and Z-AD Shareholders on or after 21 January and are set out in Note 8. Reports on the progress of the are published on or before 31 March and 31 July each year and shall be made available to Shareholders free of charge on request. The price of Shares and the income from them can go down as well as up. Please note that past performance is not necessarily a guide to future performance. 09 Invesco s Series 3

13 Technology Portfolio Statement As at 31 May 2015 The Portfolio of Investments - (analysed by industrial sector) Fair Value of (Ordinary shares quoted unless otherwise stated) Value Investment Holding $ % INTERNET (21.34%) Alibaba Group Holding Ltd 31,749 2,886, Amazon.com Inc 9,535 4,067, Facebook Inc 66,134 5,299, Google Inc Class A 9,356 5,183, Google Inc Class C 3,448 1,860, LinkedIn Corp 7,829 1,535, Monitise Plc 3,043, , Netflix Inc , Priceline Group Inc 2,495 2,970, Twitter Inc 31,963 1,176, ,157, SOFTWARE (11.83%) Autodesk Inc 9, , Check Point Software Technologies Ltd 37,565 3,199, Oracle Corp 43,522 1,908, Salesforce.com inc 68,884 5,007, ServiceNow Inc 49,063 3,847, ,502, SEMICONDUCTORS (11.83%) ARM Holdings Plc 13, , Avago Technologies Ltd 24,838 3,534, Micron Technology Inc 21, , NXP Semiconductors NV 42,257 4,681, ON Semiconductor Corp 144,025 1,869, Skyworks Solutions Inc 28,882 3,108, ,502, BIOTECHNOLOGY (10.76%) Amgen Inc 12,273 1,931, Biogen Inc 5,483 2,193, Celgene Corp 43,356 4,982, Gilead Sciences Inc 29,621 3,342, Vertex Pharmaceuticals Inc 5, , ,185, PHARMACEUTICALS (9.78%) Actavis plc 15,243 4,771, Alkermes Plc 68,008 4,074, Bristol-Myers Squibb Co 45,437 3,141, ,987, COMPUTERS (9.75%) Apple Inc 90,744 11,957, COMMERCIAL SERVICES (5.55%) MasterCard Inc 44,559 4,136, Visa Inc 38,332 2,667, ,803, TELECOMMUNICATIONS (5.49%) Cisco Systems Inc 129,350 3,796, Palo Alto Networks Inc 7,920 1,316, Sprint Corp 348,839 1,618, ,731, MEDIA (4.40%) DISH Network Corp 56,142 3,946, Invesco s Series 3

14 Technology Portfolio Statement (continued) As at 31 May 2015 The Portfolio of Investments - (analysed by industrial sector) Fair Value of (Ordinary shares quoted unless otherwise stated) Value Investment Holding $ % MEDIA (4.40%) (continued) Time Warner Cable Inc 7,941 1,448, ,395, HOME FURNISHINGS (4.40%) Harman International Industries Inc 28,948 3,539, Sony Corp 59,300 1,848, ,388, HEALTHCARE-PRODUCTS (1.51%) Medtronic Plc 23,991 1,852, ELECTRONICS (1.26%) Thermo Fisher Scientific Inc 11,858 1,543, DIVERSIFIED FINANCIAL SERVICES (1.06%) Charles Schwab Corp 40,862 1,303, CHEMICALS (0.47%) Monsanto Co 4, , Total Value of Investments (Cost $97,219,048) 121,883, Total Financial assets 121,883, Cash and Cash Equivalents (see Note 4 for details) 895, Adjustment from bid-market prices to mid-market prices 20, Other Net Current Liabilities (220,419) (0.18) Total Value of the at 31 May ,578, % of Analysis of total assets Total Assets Transferable securities admitted to an official stock exchange listing or dealt in on another regulated market Other assets Invesco s Series 3

15 Technology Changes in the Composition of the Portfolio For the six months ended 31 May 2015 Purchases Cost $ Sales Proceeds $ Cisco Systems Inc 3,835,174 Micron Technology Inc 3,607,892 Apple Inc 3,765,949 Alliance Data Systems Corp 3,391,240 Check Point Software Technologies Ltd 3,148,651 NXP Semiconductors NV 3,284,408 Twitter Inc 2,016,032 QUALCOMM Inc 2,933,428 Oracle Corp 1,958,560 Applied Materials Inc 2,746,030 Medtronic Plc 1,916,455 Avago Technologies Ltd 2,712,949 LinkedIn Corp 1,869,726 Facebook Inc 2,579,669 Amazon.com Inc 1,863,116 VMware Inc 2,388,584 Sony Corp 1,816,797 Palo Alto Networks Inc 2,323,119 Biogen Inc 1,789,164 Google Inc 2,205,140 Alkermes Plc 1,669,005 F5 Networks Inc 2,199,015 Applied Materials Inc 1,600,139 Gilead Sciences Inc 1,822,327 Alibaba Group Holding Ltd 1,591,108 MasterCard Inc 1,781,236 ON Semiconductor Corp 1,575,771 Amgen Inc 1,727,472 Actavis plc 1,561,917 Salesforce.com inc 1,605,293 Google Inc 1,500,303 Time Warner Cable Inc 1,515,926 Gilead Sciences Inc 1,419,250 Texas Instruments Inc 1,514,195 Charles Schwab Corp 1,242,491 Yelp Inc 1,456,853 Avago Technologies Ltd 1,203,944 Biogen Inc 1,409,101 Priceline Group Inc 1,156,018 AbbVie Inc 1,384,357 Harman International Industries Inc 1,017,856 Activision Blizzard Inc 1,042,831 NXP Semiconductors NV 1,001,710 Skyworks Solutions Inc 981,214 Time Warner Cable Inc 852,569 Splunk Inc 979,752 Celgene Corp 805,344 Thermo Fisher Scientific Inc 890,251 Bristol-Myers Squibb Co 783,493 Visa Inc 791,965 Vertex Pharmaceuticals Inc 741,144 DISH Network Corp 791,765 Facebook Inc 731,524 Apple Inc 560,867 ServiceNow Inc 661,766 Other Sales 3,981,474 Skyworks Solutions Inc 655,561 Total proceeds of sales since 01 December 2014 $54,608,353 Netflix Inc 617,163 MasterCard Inc 615,146 Monsanto Co 614,779 Autodesk Inc 608,320 Visa Inc 570,325 Other Purchases 4,377,722 Total cost of purchases since 01 December 2014 $53,153, Invesco s Series 3

16 Balance Sheet As at 31 May 2015 Health Care Technology Notes $ $ Assets Cash and cash equivalents 4 42,062, ,624 Balances due from brokers 349,109 Amounts due on creations 930, ,328 Financial assets at fair value through profit or loss 7 612,131, ,883,089 Other accrued income and prepaid expenses 851,659 17,035 Total assets 655,977, ,308,185 Liabilities Balances due to brokers 48, ,486 Amounts due on liquidations 4,656, ,616 Financial liabilities at fair value through profit or loss 7 297,556 Management fee payable 908, ,503 Administrator s fee payable 181,215 25,561 Accrued expenses 75,978 43,725 Total liabilities (excluding net assets attributable to holders of redeemable participating Shares) 6,167, ,891 Net assets attributable to holders of redeemable participating Shares (bid prices) 649,809, ,558,294 Adjustment from bid prices to mid-market prices 138,504 20,589 Net assets attributable to holders of redeemable participating Shares (mid-market prices) 649,947, ,578,883 Net Asset Value per A-AD Shares Net Asset Value per B-AD Shares Net Asset Value per C-AD Shares Net Asset Value per Z-AD Shares The accompanying Notes 1 to 12 on pages 22 to 26 form part of these Financial Statements. 13 Invesco s Series 3

17 Balance Sheet As at 30 November 2014 Health Care Technology $ $ Assets Cash and cash equivalents 62,384,181 4,680,756 Balances due from brokers 507,396 Amounts due on creations 5,210, ,270 Financial assets at fair value through profit or loss 450,819, ,355,642 Other accrued income and prepaid expenses 471,783 45,666 Total assets 518,885, ,908,730 Liabilities Balances due to brokers 141,638 Amounts due on liquidations 986, ,506 Financial liabilities at fair value through profit or loss 16,680 Management fee payable 687, ,279 Administrator s fee payable 136,890 23,760 Accrued expenses 73,518 53,379 Total liabilities (excluding net assets attributable to holders of redeemable participating Shares) 1,901, ,562 Net assets attributable to holders of redeemable participating Shares (bid prices) 516,984, ,450,168 Adjustment from bid prices to mid-market prices 101,325 20,120 Net assets attributable to holders of redeemable participating Shares (mid-market prices) 517,085, ,470,288 Net Asset Value per A-AD Shares Net Asset Value per B-AD Shares Net Asset Value per C-AD Shares Net Asset Value per Z-AD Shares Invesco s Series 3

18 Balance Sheet As at 31 May 2014 Health Care Technology $ $ Assets Cash and cash equivalents 39,626,650 2,736,633 Balances due from brokers 366, ,157 Amounts due on creations 52,443 Financial assets at fair value through profit or loss 391,318, ,305,608 Other accrued income and prepaid expenses 726,455 18,936 Total assets 432,091, ,933,334 Liabilities Balances due to brokers 863,984 Amounts due on liquidations 11,232,403 1,906,205 Financial liabilities at fair value through profit or loss 98,314 Management fee payable 630, ,126 Administrator s fee payable 125,471 25,236 Accrued expenses 66,814 58,266 Total liabilities (excluding net assets attributable to holders of redeemable participating Shares) 12,153,318 2,986,817 Net assets attributable to holders of redeemable participating Shares (bid prices) 419,937, ,946,517 Adjustment from bid prices to mid-market prices 80,136 17,775 Net assets attributable to holders of redeemable participating Shares (mid-market prices) 420,017, ,964,292 Net Asset Value per A-AD Shares Net Asset Value per B-AD Shares Net Asset Value per C-AD Shares Net Asset Value per Z-AD Shares Invesco s Series 3

19 Income Statement For the six months ended 31 May 2015 Health Care Technology Notes $ $ Revenue Interest income 33,565 2,480 Income from stock lending 11,413 Dividend income 3,868, ,054 Net gain on financial assets and liabilities at fair value through profit or loss (realised and unrealised) 7 65,059,617 5,982,681 Total investment income 68,973,129 6,293,215 Expenses Management fee 5,229, ,734 Administrator s fee 1,046, ,107 Trustee fee 17,191 3,422 Safekeeping and servicing fees 5,750 1,047 Auditor s fee 8,431 6,695 Other operating expenses 66,172 42,250 Total operating expenses 6,373,770 1,043,255 Operating profit 62,599,359 5,249,960 Finance costs Bank overdraft interest (412) (29) Total finance costs (412) (29) Profit before tax 62,598,947 5,249,931 Withholding tax on dividends and other investment income (976,355) (45,521) Increase in net assets attributable to holders of redeemable participating Shares (bid values) 61,622,592 5,204,410 Movement on adjustment from bid prices to mid market prices 37, Increase in net assets attributable to holders of redeemable participating Shares (mid market values) 61,659,771 5,204,879 The accompanying Notes 1 to 12 on pages 22 to 26 form part of these Financial Statements. The s had no recognised gains or losses in the financial year other than those dealt with in the Income Statement. Gains and losses arose solely from continuing operations. 16 Invesco s Series 3

20 Income Statement For the year ended 30 November 2014 Health Care Technology $ $ Revenue Interest income 76, Income from stock lending 7,569 Dividend income 4,618, ,185 Net gain on financial assets and liabilities at fair value through profit or loss (realised and unrealised) 79,816,724 21,038,567 Total investment income 84,519,774 21,583,191 Expenses Management fee 7,292,518 1,534,422 Administrator s fee 1,459, ,022 Trustee fee 28,545 7,929 Safekeeping and servicing fees 14,914 3,921 Auditor s fee 17,026 13,571 Other operating expenses 158,222 96,529 Total operating expenses 8,970,525 1,997,394 Operating profit 75,549,249 19,585,797 Finance costs Bank overdraft interest (149) (76) Total finance costs (149) (76) Profit before tax 75,549,100 19,585,721 Withholding tax on dividends and other investment income (1,139,048) (118,757) Increase in net assets attributable to holders of redeemable participating Shares (bid values) 74,410,052 19,466,964 Movement on adjustment from bid prices to mid market prices 43,441 (2,930) Increase in net assets attributable to holders of redeemable participating Shares (mid market values) 74,453,493 19,464, Invesco s Series 3

21 Income Statement For the six months ended 31 May 2014 Health Care Technology $ $ Revenue Interest income 22, Income from stock lending 7,570 Dividend income 2,874, ,520 Net gain on financial assets and liabilities at fair value through profit or loss (realised and unrealised) 20,538,945 10,580,648 Total investment income 23,443,164 10,852,606 Expenses Management fee 3,347, ,430 Administrator s fee 669, ,241 Trustee fee 12,193 3,639 Safekeeping and servicing fees 7,291 1,927 Auditor s fee 8,549 6,839 Other operating expenses 75,186 57,782 Total operating expenses 4,120,691 1,003,858 Operating profit 19,322,473 9,848,748 Finance costs Bank overdraft interest (46) (75) Total finance costs (46) (75) Profit before tax 19,322,427 9,848,673 Withholding tax on dividends and other investment income (778,286) (60,430) Increase in net assets attributable to holders of redeemable participating Shares (bid values) 18,544,141 9,788,243 Movement on adjustment from bid prices to mid market prices 22,252 (5,275) Increase in net assets attributable to holders of redeemable participating Shares (mid market values) 18,566,393 9,782, Invesco s Series 3

22 Statement of Changes in Net Assets attributable to Holders of Redeemable Participating Shares For the six months ended 31 May 2015 Health Care Technology $ $ Net assets attributable to holders of redeemable participating Shares at beginning of period (bid prices) 516,984, ,450,168 Adjustment from bid prices to mid-market prices 101,325 20,120 Net assets attributable to holders of redeemable participating Shares at beginning of period (mid-market prices) 517,085, ,470,288 Increase in net assets attributable to holders of redeemable participating Shares at bid prices 61,622,592 5,204,410 Movement on adjustment from bid prices to mid-market prices 37, Increase in net assets attributable to holders of redeemable participating Shares 61,659,771 5,204,879 Share Transactions Proceeds from redeemable participating Shares issued 168,387,983 18,204,728 Cost of redeemable participating Shares redeemed (97,185,757) (23,301,012) Net assets attributable to holders of redeemable participating Shares at the end of period (mid-market prices) 649,947, ,578,883 The accompanying Notes 1 to 12 on pages 22 to 26 form part of these Financial Statements. 19 Invesco s Series 3

23 Statement of Changes in Net Assets attributable to Holders of Redeemable Participating Shares For the year ended 30 November 2014 Health Care Technology $ $ Net assets attributable to holders of redeemable participating Shares at beginning of year (bid prices) 289,082,832 99,935,534 Adjustment from bid prices to mid-market prices 57,884 23,050 Net assets attributable to holders of redeemable participating Shares at beginning of year (mid-market prices) 289,140,716 99,958,584 Increase in net assets attributable to holders of redeemable participating Shares at bid prices 74,410,052 19,466,964 Movement on adjustment from bid prices to mid-market prices 43,441 (2,930) Increase in net assets attributable to holders of redeemable participating Shares 74,453,493 19,464,034 Share Transactions Proceeds from redeemable participating Shares issued 364,995,025 56,094,490 Cost of redeemable participating Shares redeemed (211,503,331) (53,046,820) Net assets attributable to holders of redeemable participating Shares at the end of year (mid-market prices) 517,085, ,470, Invesco s Series 3

24 Statement of Changes in Net Assets attributable to Holders of Redeemable Participating Shares For the six months ended 31 May 2014 Health Care Technology $ $ Net assets attributable to holders of redeemable participating Shares at beginning of period (bid prices) 289,082,832 99,935,534 Adjustment from bid prices to mid-market prices 57,884 23,050 Net assets attributable to holders of redeemable participating Shares at beginning of period (mid-market prices) 289,140,716 99,958,584 Increase in net assets attributable to holders of redeemable participating Shares at bid prices 18,544,141 9,788,243 Movement on adjustment from bid prices to mid-market prices 22,252 (5,275) Increase in net assets attributable to holders of redeemable participating Shares 18,566,393 9,782,968 Share Transactions Proceeds from redeemable participating Shares issued 201,582,050 38,445,486 Cost of redeemable participating Shares redeemed (89,271,196) (31,222,746) Net assets attributable to holders of redeemable participating Shares at the end of period (mid-market prices) 420,017, ,964, Invesco s Series 3

25 Notes to the Financial Statements For the six months ended 31 May Significant Accounting Policies (a) Basis of Preparation The condensed financial statements have been prepared under the historical cost convention as modified by the revaluation of financial assets and financial liabilities held at fair value through profit or loss. These condensed Financial Statements have been prepared in accordance with Irish law and pronouncements on half yearly reports issued by the. Accounting Standards Board and the European Communities (UCITS) Regulations, 2011 (as amended), (the UCITS Regulations ). These condensed financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the annual financial statements for the year ended 30 November 2014, which have been prepared in accordance with accounting Standards generally accepted in Ireland. The s have availed of the exemption permitted to open-ended investment funds under FRS 1 not to prepare a cash flow statement. Dividends, interest and capital gains received on investments made by the s may be subject to withholding taxes imposed by the country from which the investment income/gains are received and such taxes may not be recoverable by the s or its Shareholders. (b) Foreign Currency Translation (i) Functional and presentation currency Items included in each s Financial Statements are measured using the currency of the primary economic environment in which it operates ( the functional currency ). This is the US Dollar ($). The US Dollar is also the presentation currency. The Financial Statements are presented in the s functional and presentation currency and rounded to the nearest whole number. They are prepared on the fair value basis for financial assets and financial liabilities at fair value through profit or loss and derivative financial instruments. Other financial assets and financial liabilities are stated at amortised cost or redemption amount (redeemable Shares). (ii) Assets and liabilities in foreign currencies are translated into US Dollars at the rates of exchange ruling at the Balance Sheet date. Income and expenditure transactions are translated at the rates of exchange ruling at the date of the transactions. The principal exchange rates used: $ May November May 2014 Australian Dollar Brazilian Real Canadian Dollar Czech Koruna Danish Krone Egyptian Pound Euro Hong Kong Dollar Indian Rupee Indonesian Rupiah 13, , , Japanese Yen Malaysian Ringgit New Zealand Dollar Nigeria Naira Norwegian Kroner Philippine Peso Pound Sterling Singapore Dollar South African Rand South Korean Won 1, , , Swedish Krona Swiss Franc Taiwan Dollar Thailand Baht Turkish Lira Uruguay Peso Invesco s Series 3 Restatement of Net Asset Value in accordance with Financial Reporting Standard No. 26 (Financial instruments: Recognition and Measurement) To determine the net asset value of each for subscriptions and redemptions, investments have been valued based on the mid market prices at 12.00pm (Irish time) on the relevant trading day. For Financial Statements purposes, investments are valued based on bid prices and an adjustment to mid market prices is shown. This adjustment from bid to mid for the six months ended 31 May 2015 is shown in the Balance Sheet on page 13. The movement in the adjustment from the current six months end to the previous year end is shown in the Income Statement on page 16. The net asset value per Share is disclosed in Note UK Reporting The offshore s (Tax) Regulations 2009 and Subsequent Regulations Amendments ( the Regulations ) introduced new provisions to update offshore funds regime and came into effect for periods of accounting commencing after 1 December The Reporting s Regime requires: 1. the reporting fund status is applied for once and in advance. 2. the relevant Share classes to report details of Income annually, within six months of their accounting year end to both Investors and UK authorities. 3. Investors to provide details of reportable income on their annual tax return. The following Share Classes currently have UK Reporting Status; Health Care Technology A-Dist, C-Dist & Z-Dist A-Dist, C-Dist & Z-Dist The Statement of Reportable Income for the financial year ended 30 November 2014 is available through the following Invesco websites Soft Commissions and Related Party Transactions The s, (consistent with obtaining the best net result, including best execution), may enter into agreements with counterparties whereby those counterparties may make payments for investment services provided to the s. Investment services are used by the s to improve or add to the services provided to its clients. Although each and every service may not be used to service each and every account managed by the s, the Directors of the Manager consider that those investment services received are, in the aggregate, of significant assistance in fulfilling its investment responsibilities and are of demonstrable benefit to all clients. Only services that in the view of the Directors of the Manager assist in the provision of investment services to the s clients will be paid for by counterparties. Allowable investment services include services that provide assistance to the s in their investment performance. Those services include, but are not necessarily limited to, furnishing analysis, research and advisory services including economic factors and trends, portfolio valuation and analysis, performance measurement, market prices services and the use of specialised computer software and hardware or other information facilities.