Download Invesco Global Investment Grade Corporate Bond Fund A

Invesco Global Investment Grade
Corporate Bond Fund
A-AD shares
March 2017
This marketing document is exclusively for use by Professional Clients and Financial Advisers in Continental
Europe (as defined in the important information) and Ireland, and Qualified Investors in Switzerland. This
document may also be used by financial intermediaries in the United States as defined in the important
information. This document is not for consumer use, please do not redistribute.
Contents
Invesco Global Investment Grade Corporate Bond Fund
Investment philosophy and process
Portfolio performance and positioning
2
Invesco Global Investment Grade
Corporate Bond Fund
Invesco Global Investment Grade Corporate
Bond Fund
Key fund features
1
Targets alpha
through global
thematic ideas
 The award winning1 Invesco Global Investment Grade
Corporate Bond Fund uses the flexibility of its guidelines to
target alpha through global thematic ideas. These themes are
implemented within a robust risk-disciplined framework with
the intention of performing well in any market environment.
The fund benefits from the broadest possible universe due to
its global mandate. This allows it to make full use of Invesco
Fixed Income’s (IFI) global platform in order to uncover
relative value opportunities across investment grade corporate
bond markets
2
Experienced
global team
 The IFI team has been actively investing in fixed income
markets for more than 30 years and currently manages
approximately US$270bn2 of assets on behalf of institutional
and private investors globally across a wide range of
strategies. With the ability to leverage off the experience of our
global team of over 160 investment professionals, the portfolio
managers are able to target the most attractive risk adjusted
returns within the investment universe
1 Lipper Fund Awards 2015 (which are awarded on an annual basis) – recognised for 5 year performance.
2 Invesco, as at 30 September 2016.
4
Lyndon Man & Luke Greenwood
Fund managers
Lyndon Man
Luke Greenwood
“I believe our thematic approach to investing will be key to delivering
attractive risk adjusted returns going forward.”
Lyndon Man, Fund manager
5
Invesco Global Investment Grade Corporate
Bond Fund
Fund facts
Fund name
Invesco Global Investment Grade Corporate Bond Fund
Fund objectives
The Fund intends to achieve, in the medium to long term, a competitive overall investment
return with relative security of capital in comparison to equities. The Fund will invest at least
two thirds of its total assets in investment grade corporate bonds. Up to one third of the total
assets of the Fund may be invested in cash, cash equivalent securities and other debt
securities1
Launch date
1 September 2009
Domicile
Luxembourg
Legal structure
Luxembourg SICAV with UCITS status
Base currency
USD
Unit type
Accumulation and distribution
Reference index
Bloomberg Barclays Global Aggregate Corporate Index (Hedged USD)
Share class
Unit type
Share class ccy
Annual
management fee
Minimum
investment
ISIN codes
A
AD
USD
0.75%
USD 1,500
LU0432616141
There may be additional share classes2 registered for sale in individual jurisdictions.
1 For the full objectives and investment policy please consult the current prospectus.
2 For information on fund and fund’s shares registrations, please refer to the appropriate internet site or your local Invesco office. 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 fund
prospectus for additional information.
6
Investment philosophy and process
Invesco Fixed Income overview
Global perspective, breadth of resources, and
significant scale
Global Investment Team footprint
Scope of fixed income platform:
US$269.8 billion AUM
London
Portland Chicago Toronto London
New York
Louisville
Atlanta
San Diego
Palm Harbor
Rates 19
Currency 14
Tokyo
Shenzhen
Hong
Hong
Kong
Mumbai
Kong
Credit 72
Depth of resources:
167 investment professionals
229 professionals
Global footprint:
10 locations in key markets
PM 77
Shenzhen and Mumbai represent Invesco subsidiaries Invesco Great Wall and Invesco Asset Management (India) Private Limited and are not included in the
official location count.
Source: Invesco, as of 30 September 2016. 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.
8
Invesco Fixed Income overview
We believe return opportunities arise from both market
direction and fundamentally-based security selection
Our philosophy ties opportunity to the economic cycle
 An economy’s cycle of expansions and
contractions matters for asset prices
 Successful long-term management
requires skill in determining market
direction and effective security selection
Market
Direction
Security
Selection
Themes
 Integrating local knowledge into a global
view strengthens our capabilities
 Multi-faceted risk management is critical
for exceptional long term performance
Economic
Cycle
We believe at different points in a
market cycle, market direction and
security selection differ in importance
Source: Invesco as of September 2016. For illustrative purposes only.
9
Invesco Fixed Income Overview
Disciplined process builds on our investment
philosophy as we seek to drive strong results
Our investment process
builds on key components
Macro Research
 Fundamentally–based macro
and credit research generate
investable views, themes and
input for strategy
Integrated
Strategy
Credit Research
Platform
Tool Kit
Portfolio
Management
Client Portfolio
Source: Invesco, as of September 2016. For illustrative purposes only.
10
 Integrated strategy determines
views on market direction, risk
positioning, and asset allocation
 Portfolio managers utilize platform
views (the tool kit) for client
portfolios
 Risk management is integrated
throughout our process
Invesco Global Investment Grade Corporate Bond
Fund
A truly global approach to corporate bond investing
Strong Track Record

First quartile versus
peers (1, 3 and 5yrs)1

Lipper Fund Awards2
Flexible Mandate

Truly global team:
Interconnected global team
seeking relative-value
opportunities

Investment grade focus:
with discretion to invest in
rising star/fallen angel
opportunities

Derivatives used for risk
mitigation (duration,
currency & credit) and
investment purposes
Unique Strategy

Thematic investing
targets strategic alpha

Tactical positioning targets
shorter term opportunities

Security selection
maximizes efficient portfolio
positioning
Source: Invesco, as of 30 September 2016. 1Morningstar as at 30 September 2016. 2Lipper Fund Awards 2015 (which are awarded on an annual basis) recognised for 5 year performance. For illustrative purposes only. Past performance is no guarantee of future returns. Any references to awards and ratings
provide no guarantee of future returns.
11
Portfolio Management
Transparent, robust and repeatable
Macro
Credit
IST
Platform Tool Kit
Portfolio Management
Strategy

Identify investment
opportunities
For illustrative purposes only.
12
Implementation
Risk Management

Market assessment

Diversification

Portfolio characteristics

Stress testing

Position sizing

Scenario analysis

Back testing
Strategy
Identify investment opportunities
Strategic
Tactical
Market Direction
Investment Themes

Fundamental

Regional

Macro hedging

Valuation

Capital structure

Macro investment

Technical

Yield curve

Sector

Basis
For illustrative purposes only.
13
Market Direction
Investment Themes

Rising star/fallen angel

Primary market
Implementation
Market assessment – Timing is key
Understanding market conditions
Liquidity
 Assessment of market
liquidity and implications for
trading costs
Seasonality
 Asset allocation timing
 Positive & negative demand
factors
For illustrative purposes only.
14
Flows
 Influence demand, resulting
in:
– Short-term momentum
– Long-term mean
reversion
Sentiment
 Changes in investor
sentiment typically leads to
the market overshooting
 Creates value opportunities
Issuance
 Makeup of supply pipeline
 Scarcity value or
oversupply?
Positioning Data
 Herd mentality
 Consensus trades
Implementation – Invesco Global Investment
Grade Corporate Bond Fund
Portfolio characteristics
Core
Investment grade credit (Minimum
70%1)
Country/sector
exposure
No internal limit – positions sized using
units of risk*
High yield
bonds
Typically between 5–10% to capture
rising star opportunities
Objective
Duration
management
Duration is generally in line with the
benchmark (+/- 1year)
Currency
Non-US dollar exposure predominantly
hedged
Derivatives
Used for efficient portfolio
management & investment purposes
1Whilst
Targeted
Risk Adjusted
Returns
the Prospectus allows for more flexibility with at least two thirds allocation in investment grade corporate bonds, historically allocation to sub-investment
grade corporate bonds has been less than 30%, which allows the fund to be included in the Morningstar GIFS Global Corporate Bond (US$ hedged) sector.
* One unit of risk is defined as 25bps of tracking error versus the benchmark. For illustrative purposes only. Please also refer to the important information slides.
15
Implementation
Position sizing
Key metrics
Strategy
Market
Assessment
Portfolio
Characteristics
For illustrative purposes only.
16

Tracking error

Price volatility

Interest rate sensitivity measures

Return correlation
Position
Sizing
Targeted
Risk Adjusted
Returns
Risk Management
Multi-layered approach
Continuous Oversight &
Review
Fund Management
Client
Portfolio

Diversification

Stress testing

Scenario analysis

Back testing
Senior Management

Challenge and review

Fund governance
Independent Risk Function

Independent risk analysis

Independent risk challenge
GPMR*
For illustrative purposes only. * Global Performance Measurement & Risk.
17

Attribution

Risk metrics
Portfolio performance and positioning
Invesco Global Investment Grade Corporate
Bond Fund
Indexed performance
Indexed performance1
140
130
120
110
100
90
80
02/12
Fund
02/13
02/14
02/15
02/16
02/17
Index²
A – AD shares. Past performance is not a guide to future returns.
1 (Source: © 2016 Morningstar) Fund returns are inclusive of gross income re-invested and net of the ongoing charge and portfolio transaction costs, cumulativ
The figures do not reflect the entry charge payable by individual investors.
2 Bloomberg Barclays Global Aggregate Corporate Index (Hedged USD).
There is currently a discretionary cap of operating expenses at a maximum of 0.05% in place. This figure forms part of the ongoing charge and may positively
impact the performance of the Share Class.
19
Invesco Global Investment Grade Corporate
Bond Fund
Cumulative and calendar year performance
Cumulative performance1
in %
YTD
1 month
1 year
3 years
5 years
Fund
1.94
1.43
8.91
17.34
31.11
Index2
1.34
1.21
6.56
12.82
24.00
1
1
1
1
1
3/51
4/51
6/49
1/33
1/25
Quartile ranking
Absolute ranking
Mstar GIF OS Sector: Offshore OE Global Corporate Bond – USD Hedged Sec
Calendar year performance1
in %
2012
2013
2014
2015
2016
Fund
12.31
1.03
10.12
1.04
6.07
Index2
10.92
0.07
7.60
-0.24
6.22
A – AD shares. Past performance is not a guide to future returns.
1 (Source: © 2016 Morningstar) Fund returns are inclusive of gross income re-invested and net of the ongoing charge and portfolio transaction costs, cumulativ
The figures do not reflect the entry charge payable by individual investors.
2 Bloomberg Barclays Global Aggregate Corporate Index (Hedged USD).
There is currently a discretionary cap of operating expenses at a maximum of 0.05% in place. This figure forms part of the ongoing charge and may positively
impact the performance of the Share Class.
20
Invesco Global Investment Grade Corporate
Bond Fund
Currency exposure and duration weight
Currency exposure and duration weight1
Fund in %
Index2
in %
Hedge in % Currency in %
WDR3
(Fund)
WDR
(Index)
USD
65.68
99.37
34.77
100.45
4.43
4.55
GBP
18.33
0.00
-18.48
-0.15
0.49
0.44
EUR
16.10
0.63
-15.96
0.14
1.03
1.13
AUD
0.06
0.00
-0.30
-0.24
0.05
0.01
NZD
0.05
0.00
-0.20
-0.15
0.00
0.00
CHF
0.00
0.00
0.00
0.00
0.00
0.03
JPY
0.00
0.00
-0.01
-0.01
0.00
0.06
SGD
0.00
0.00
-0.04
-0.04
0.00
0.00
Other
0.05
0.00
-0.05
0.00
0.08
0.14
Total
100.27
100.00
-0.27
100.00
6.08
6.36
A – AD shares.
1 Source: Invesco as at 28 February 2017.
2 Bloomberg Barclays Global Aggregate Corporate Index (Hedged USD).
3 Weighted average duration.
Portfolio weightings can change any time and without warning.
There is currently a discretionary cap of operating expenses at a maximum of 0.05% in place. This figure forms part of the ongoing charge and may positively
impact the performance of the Share Class.
21
Invesco Global Investment Grade Corporate
Bond Fund
Sector exposure
Sector exposure1
WDR
(Index)
Fund
average
rating
Index
average
rating
Fund in %
Index2 in %
WDR
(Fund)
88.4
98.6
4.3
6.3
BBB
BBB+
Quasi and Foreign Government
6.0
0.0
0.4
0.0
BBB+
AA-
Preferred Securities
0.0
0.0
0.0
0.0
–
BBB+
US Tax-Exempt Municipals
0.0
0.0
0.0
0.0
–
AAA
Other
1.0
1.4
1.4
0.1
–
–
Cash and FX
4.6
0.0
0.0
0.0
–
–
Corporate
A – AD shares.
1 Source: Invesco as at 28 February 2017.
2 Bloomberg Barclays Global Aggregate Corporate Index (Hedged USD).
Portfolio weightings can change any time and without warning.
There is currently a discretionary cap of operating expenses at a maximum of 0.05% in place. This figure forms part of the ongoing charge and may positively
impact the performance of the Share Class.
22
Invesco Global Investment Grade Corporate
Bond Fund
Credit ratings
Credit ratings1
average rating: BBB
Credit ratings of the fund in %1
in %
Fund
Index2
AAA
0.0
0.4
AA
0.5
9.4
AA
A
A
17.3
38.1
BBB
BBB
59.1
49.4
BB
BB
18.7
2.0
Cash and FX
Not rated
Cash and FX
-0.2
0.7
4.6
0.0
A – AD shares.
1 Source: Invesco as at 28 February 2017.
2 Bloomberg Barclays Global Aggregate Corporate Index (Hedged USD).
Portfolio weightings can change any time and without warning.
There is currently a discretionary cap of operating expenses at a maximum of 0.05% in place. This figure forms part of the ongoing charge and may positively
impact the performance of the Share Class.
23
Invesco Global Investment Grade Corporate
Bond Fund
Weighted average duration1
in years
Dollar Bloc
Europe
UK
Japan
Fund
4.6
1.0
0.5
0.0
Index2
4.7
1.2
0.4
0.1
Yield %1
Gross current yield
Gross redemption yield
4.77
4.43
3 year characteristics3
Alpha
Beta
Correlation
Information ratio
Sharpe ratio
Tracking error in %
Volatility in %
0.72
1.15
0.91
0.71
1.22
1.86
4.34
For detailed information about the 3 year characteristics please see
http://www.invescoeurope.com/CE/Glossary.pdf.
A – AD shares.
1 Source: Invesco as at 28 February 2017.
2 Bloomberg Barclays Global Aggregate Corporate Index (Hedged USD)
3 Source: Morningstar as at 28 February 2017.
Portfolio weightings can change any time and without warning. Dollar = US$. There is currently a discretionary cap of operating expenses at a maximum of 0.05%
in place. This figure forms part of the ongoing charge and may positively impact the performance of the Share Class.
24
Important information
This marketing document is exclusively for use by Professional Clients and Financial Advisers in Continental Europe (as defined below) and Ireland, and
Qualified Investors in Switzerland. This document may also be used by financial intermediaries in the United States as defined below. Data as at
28.02.2017, unless otherwise stated. This document is not for consumer use, please do not redistribute. This document is not subject to regulatory
requirements that ensure impartiality of investment recommendations and investment strategy recommendations. Therefore, the prohibition of trading
before the release of investment recommendations and investment strategy recommendations does not apply.
Past performance is not a guide to future returns. Where Invesco has expressed views and opinions, these may change and are not to be construed as investment
advice. 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. 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 fund. The fund will invest in derivatives (complex instruments) which will result in the fund being leveraged and may result in
large fluctuations in the value of the fund.
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. 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
Interim Reports and the latest Prospectus, and constituent documents. This information is available using the contact details of the issuer and is without charge. Further
information on our products is available using the contact details shown.
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. Persons interested in acquiring the 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. As with all investments, there are associated risks. This document is by way of information only. Asset management services are provided
by Invesco in accordance with appropriate local legislation and regulations. The fund is available only in jurisdictions where its promotion and sale is permitted. 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. Fee structure and
minimum investment levels may vary dependent on share class chosen. 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 be advised that the information
provided in this document is referring to Class A (annual distribution - USD) exclusively. This fund is domiciled in Luxembourg.
For the distribution of this document, Continental Europe is defined as Austria, Belgium, Finland, France, Germany, Italy, Liechtenstein, Luxembourg,
Netherlands, Norway, Spain, Sweden and Switzerland.
Germany, Austria, Switzerland and Liechtenstein: This document is issued in Germany by Invesco Asset Management Deutschland GmbH. This document is issued in
Austria by Invesco Asset Management Österreich – Zweigniederlassung der Invesco Asset Management Deutschland GmbH, and in Switzerland as well as Liechtenstein by
Invesco Asset Management (Schweiz) AG. Subscriptions of shares are only accepted on the basis of the most up to date legal offering documents. 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-60322 Frankfurt am Main,
Invesco Asset Management Österreich – Zweigniederlassung der Invesco Asset Management Deutschland GmbH, Rotenturmstrasse 16-18, A-1010 Wien, and Invesco Asset
Management (Schweiz) AG, Talacker 34, CH-8001 Zurich, who acts as a representative for the funds distributed in Switzerland. In Liechtenstein the KIID and Prospectus
are available in German and English on www.fundinfo.com, respectively. Paying agent in Switzerland: BNP PARIBAS SECURITIES SERVICES, Paris, succursale de Zurich,
Selnaustrasse 16, CH-8002 Zürich. Paying agent in Liechtenstein: LGT Bank AG, Herrengasse 12, FL-9490 Vaduz. Ireland: Issued by Invesco Global Asset Management
DAC, Central Quay, Riverside IV, Sir John Rogerson’s Quay, Dublin 2, Ireland. Regulated in Ireland by the Central Bank of Ireland. www.invescoeurope.com
Additional information for Financial Intermediaries in the United States: This material is intended for distributors, platforms, financial advisors and investment
managers located in the United States in relation to their activities with offshore clients only. It must not be redistributed to end investors. This document is neither
intended for US Persons, nor US residents. This fund must not be marketed on the US soil. This fund is registered for distribution in a limited number of countries, and
should an activity create additional obligations (such as a local registration for sale or tax notification) for Invesco, you shall seek the prior formal approval of Invesco before
undertaking such activity. Any marketing material you create on the fund for end investors shall also be expressly approved by Invesco. Issued in the US by Invesco
Distributors, Inc., 11 Greenway Plaza, Suite 1000, Houston, Texas 77046. Invesco Distributors is the appointed US sub-distributor of the Invesco Funds SICAV and the
Invesco Fund Series 1-6.
CE2721/2016
25