Invesco Fixed Income Finding the path in a …assets.invescohub.com/fixedincome/IFI_Brochure_EN.pdfInvesco Fixed Income 5 Invesco Fixed Income: facts and philosophy The team has been

Invesco Fixed IncomeFinding the path in a challenging environment

This marketing document is exclusively for use by Professional Clients and Financial Advisers in Continental Europe (as defined in the important information). This document is not for consumer use, please do not redistribute.

2 Invesco Fixed Income

Depth of resources*Managed by Invesco Fixed Income team:* USD assets under management

314 billion USD

Invesco Fixed Income team: We offer a comprehensive range of strategies to help meet client objectives (in billion USD)*

Invesco Fixed Income Facts and figures at a glance

* Source: Invesco, as of 31 March 2018.* * Approximately 23.8 bn USD of Stable Value Assets are managed within our Global Fixed Income and Structured Securities teams and are reflected in

the line items of those groups above. This is not to be construed as an offer to buy or sell any financial instruments or constitute a recommendation of the suitability of any investment strategy for a particular investor. Not all capabilities are available to all investors or in all jurisdictions. Subject to change without notice.

226 professionals

169 investment professionals

Fixed Income AUM 314 bn USD (complete strategies)

Global Liquidity Stable Value** Structured Securities Municipals Global Investment Grade Multi Sector High Yield Emerging Markets Bank Loans

Our teams provide broad market coverage and specialized expertise*

Portfolio Management and Trading

74

Within Invesco Ltd., the asset class of “Fixed Income” is the second largest*

421 bn USDAUM

59 bn USDAUM

146 bn USDAUM

80 bn USDAUM

228 bn USDAUM

Equity Fixed Income

Balanced Alternatives Money Market

Global Research95

Business Professionals57

106

30

40

27

47

11

45

44

Invesco Fixed Income 3

* * Invesco Fixed Income.* * Source: Invesco, as of 31 March 2018.

Invesco investment centers worldwide** Location of Invesco Fixed Income Team

EuropeFrankfurtHenleyLondonLuxembourg Madrid Milan MunichParis Prague Warsaw

AustraliaMelbourneSydney

North AmericaAtlantaAustinBostonChicagoDallasHoustonLouisvilleNew YorkNewport BeachPalm HarbourPortlandSan DiegoSan FranciscoTorontoVancouver

Asia Hong KongHyderabad

MumbaiPeking Seoul

Shanghai ShenzhenSingapore

Taipei Tokyo

Shenzhen and Mumbai represent wholly owned Invesco subsidiaries and are not included in the official Invesco Fixed Income location count.

Invesco Fixed Income teams are connected through open dialogue We serve a diverse mix of institutional investors and understand their unique challenges

– Recorded

– Global Macro Research– Investment Strategy Team (IST)– Emerging Market Strategy Team (EMST)– Asset class research teams– Portfolio management teams– Sector Teams – one of 9 teams meets every week– Credit Strategy Team – IFI* Sector Forum

– Global investment teams in one location

Corporations (Pension & Treasury)

Consultants Financial Institutions

Foundations & Endowments

Insurers Public Funds Sovereigns & Central Banks

Unions/Multi- Employers

Daily morning call

Weekly meetings

Monthly meetings

Semi-annual Investor Summit


Finding the path in a challenging environment

Navigating the global fixed income markets is becoming an increasingly complex proposition for investors. The economic background remains challenging, and many investors are uncertain about where the market will go. At the same time, there seems to be a “sea of sameness” on the product side, offering many options but few real choices.

Global breadth and local depth Today, investors who are looking for good, long-term investment results face fast-moving fixed income markets, where local events can quickly become global phenomena. How can investors meet their objectives? What is critical for building risk-adjusted portfolios, and how can truly distinct strategies be developed?

The members of Invesco Fixed Income – headquartered in Atlanta – share a conviction: Team depth, perspective, and collaboration are critical for assessing and implementing investment opportunities for clients. The team’s global breadth and local depth provide a comprehensive network of subject-matter experts across the globe. The purpose-built connectivity and rigorous enforcement of credit and risk processes create a nexus of trusted and vetted information flow. Each portfolio manager can rely upon this flow to make the most informed decisions for each unique client mandate.

Strategies based on investment themesThe Invesco Fixed Income teams work together to generate key process elements necessary to produce attractive risk-adjusted returns across multiple market environments:

• A broad, deep and diverse toolkit of ideas. The large interconnected team is focused on multiple regions, sectors, industries, and issuers.

• Investment ideas grounded in disciplined fundamental research. Experienced investment analysts integrate fundamental research and relative value analysis into investable ideas using processes designed to be repeatable and comparable across the team.

• Collaboration and challenge to strengthen views. The organisation of teams and structure of formal meetings are designed to examine views through multiple lenses.

• Standardized framework enhances the ability to compare the relative value, opportunity and risk of ideas. Consistent application of processes and transparent communication in a common language facilitate uniform assessment and implementation of risks and opportunities.

• Comprehensive perspective on how the ideas will work together in a portfolio to achieve objectives. Experience and judgment are combined with systematic processes to drive consistency in analysis. Transparent and accessible views leveraged through sophisticated risk management tools allow timely implementation of ideas in client portfolios.

“ Being prepared to innovate amid changing markets is critical for meeting client needs and maintaining their trust.”


Invesco Fixed Income: facts and philosophy The team has been actively investing in fixed income markets across a wide range of strategies for more than 30 years. It currently manages approximately USD 312 billion of assets on behalf of institutional and private investors globally.

With the ability to tap the experience of the global team and over 170 investment professionals, the portfolio managers can target the most attractive risk-adjusted returns within the investment universe. The investment professionals are organized into global teams offering a wide range of capabilities, from cash to core to alternatives. The global teams benefit from experienced local professionals connected through open dialogue and a common, integrated approach to macro analysis, credit research and portfolio management.

“ We aim to offer investors real freedom to choose between distinct fixed income strategies to arrive at their investment objectives.”

Invesco Fixed Income has a collaborative culture entirely focused on delivering investment excellence to clients

Organizational Strength and Presence

Global Platform

Research-Based Investment Process

Performance-Driven Culture

Collaborative Team Approach

For illustrative purposes only.

Invesco Fixed Income is a key part of a financially strong, global asset manager solely dedicated to investment management

A global team of experienced professionals whose knowledge of local markets strengthens the investment process

A structured and disciplined process that integrates macro and credit research to uncover value

A culture focused on understanding market dynamics and improving consistency of investment returns

A culture of inclusion that compounds expertise by working together effectively to drive results


Factor investing in the fixed income space

Value, momentum, low volatility: such characteristics are widely recognised as factors that can explain equity risk and returns in the equity space. Should investors think about factors in the fixed income space? Yes, say Invesco Fixed Income’s specialists Jay Raol, Shawn Pope, Matt Haler and Amritpal Sidhu: key macro and credit factors can help explain fixed income risk and returns and aid in asset allocation. Read more in this extract from our interview.

Shawn: Factors can be a source of excess returns, different from traditional asset class returns. They can help investors to better control risk in their portfolios: factor correlations tend to be more stable than asset class or sector correlations. And factors can be used in conjunction with traditional security selection to construct portfolios.

“ Factors can be a source of excess returns.”

Amritpal: IFI believes that factors are not specific to asset classes – in other words, factors can translate investor behavior into investment risk and returns in any asset class. Drawing on factors’ extremely long history of backtesting and recognized track record within the equity space, Invesco Fixed Income has translated equity factor ideas into investment ideas for currencies, government bonds and corporate bonds.

Jay: Macro factors are based on broad macroeconomic concepts. We believe that growth, inflation and financial conditions are the primary macro factors driving fixed income markets.

For example, when growth expectations are revised up by market participants, it is likely that government bond prices will fall while equities, commodity prices and emerging market currencies will rise. If market participants revise up their inflation expectations, bond and equity prices will likely fall, while commodity prices will likely rise. Finally, when financial conditions tighten, equity and commodity prices will likely fall, while government bonds and the dollar will likely rise.

Jay: First, we use only those factors that have a strong fundamental rationale. Second, we look for factors that receive less attention from academia and competitors by focusing on factors that help in beta replication and hedging. Third, we employ a robust, quantitative backtest to identify how factors are dependent on different economic conditions. Finally, we have defined factors so that they are complementary to fundamental investment management. This allows us to bring together quantitative and qualitative active management.

“ Bringing together quantitative and qualitative active management.”

How can factors benefit investors?

Why should factors be used in fixed income?

What are “macro factors” and how are they applied in fixed income?

What is your team’s factor philosophy?


Matt: While factor backtesting is an important part of understanding how factors will likely contribute to portfolio risk and return, our starting point for portfolio construction is the client’s constraints and risk preferences. We then use portfolio construction, risk and scenario analysis tools to build a portfolio most suitable for these preferences. Some client risk and return objectives do not fall into either an actively or passively managed product. For those clients, we seek to customize factor strategies. Recently, we have created portfolio construction machinery to help size security allocation to achieve factor tilts in line with portfolio constraints. We have evolved these processes to monitor how the factor strategy is performing and how successfully it is being translated into the client’s portfolio. We plan to build on this work to create a portfolio management system that can scale in additional mandates with different constraints.

“ We seek to customize factor strategies.”

Jay: We seek to employ factors in multiple ways to best suit the needs of our clients. Factors allow us to work more closely with clients to better understand their existing portfolios. We also believe that these factor strategies can be a solid foundation for our active product offerings on which we can build further active investment ideas.

“ We seek to employ factors in multiple ways to best suit the needs of our clients.”

How does IFI create factor portfolios?

How does Invesco Fixed Income use these factors in strategies?

Shawn Pope Macro Quantitative Analyst

Amritpal Sidhu Quantitative Analyst

Matthew Haler Senior Analyst

Jay Raol Senior Macro Analyst


Invesco Fixed Income: the team’s strategic approach

Invesco Fixed Income believes that return opportunities arise from both market direction and fundamentally based security selection. The team’s disciplined process builds on a focused investment philosophy.

Collaborative team approach with a disciplined processThe team employs a structured and disciplined process to maintain consistency, but builds in flexibility to adapt to dynamic markets. The investment process integrates macroeconomic and credit analysis into a broad risk and asset allocation strategy and key themes to guide decision-making. It caters to changing market environments, targeting continuity of results, and is based on key beliefs:

• Economic cycles matter for asset prices• In different phases of a market cycle, direction and security selection differ in

importance• Successful long-term investing requires both the ability to assess market direction

and select securities effectively• Integrating local macro and credit knowledge into a global view strengthens

capabilities• Multi-faceted risk management is critical for portfolio construction

Investment processThe best investment insights come from independent experts, collaborating within a disciplined, yet flexible structure. Our investment process integrates macro and credit views into risk positioning, asset allocation views and key themes to guide investing. Portfolio managers combine these views with their own to create optimal portfolios. Together with highly sophisticated risk management techniques, this enables rigorously structured and consistent outcomes that target solid risk-adjusted returns over the long-term.

In a nutshellInvesco Fixed Income's global breadth and local depth provide a comprehensive network of subject matter experts across the globe. The purposefully built connectivity and rigorous enforcement of our credit and risk processes create a nexus of trusted and vetted information flow. This helps us to make the most informed decisions for our funds.

“ The team’s disciplined process builds on a focused investment philosophy.”


Investment process

For illustrative purposes only.

Investment Strategy Team (IST)

Research teams (macro and credit)

IFI risk management

Integrated strategic view Macro views Credit views

– Macro and credit synthesis – Excess return forecasts – Normalised model portfolio

– Economic regime & policy assessment

– Rates and currency valuation

– Fundamental analysis

– Valuation assessment

– Security analysis

Platform tool kit

Risk positioning and asset allocation

Macro and sector Investable themes

Rates, currency, credit selection (“best ideas”)

Portfolio management

Assessment and implementation of platform views

Risk-aware portfolio construction targeting client objectives

Portfolio

“ We believe return opportunities arise from both market direction and fundamentally-based security selection.”


Invesco Fixed Income: selected funds at a glance

“ We start with client risk and return objectives and strategies designed to meet those goals. We then construct portfolios aligned with these objectives, sourcing ideas from across our global platform.”

Invesco Fixed Income: four selected funds*

Invesco Euro Bond Fund Invesco Euro Short Term Bond Fund

Invesco Global Investment Grade Corporate Bond Fund

Invesco Active Multi-Sector Credit Fund

ScopePrimarily a diversified portfolio of sovereign and investment grade corporate bonds denominated in euros, with the flexibility to seek value across high yield, emerging markets and European currencies.

Primarily a diversified portfolio of short dated sovereign and investment grade corporate bonds denominated in euros, with flexibility to invest in longer dated, non-euro or high yield bonds in measured amounts.

Primarily a diversified portfolio of global investment grade corporate bonds, with the flexibility to seek value in high yield bonds for so-called “rising stars” and

“fallen angels” as well as subordinated debt.

With a flexible multi-sector approach, the fund managers combine investment grade corporates, emerging market debt, bank loans and high yield bonds.** The strategic asset allocation process applies a risk balanced approach to each of the credit sectors.

Goals*The fund aims to provide long-term capital growth, together with income. It will seek to consistently outperform the benchmark over the medium to long term.

The fund aims to provide long-term capital growth and attractive yield relative to peers, while mitigating the impact of a rising interest rate environment.

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 seeks to provide attractive returns over a full market cycle through security selection, strategic and tactical asset allocation and a disciplined risk management process.

Portfolio asset allocation Government Bonds 25.0%

Government Related 5.5%

Corporate Bonds 66.2%• Financial 32.8%• Industrial 28.8%• Utility 4.6%

Government Bonds 46.0%






Global Investment Grade 34.0%

Bank Loans 21.4%

High Yield 15.2%

Emerging Market 14.9%

Opportunistic 14.6%

Average rating (ø) BBB A- BBB BBB-

Credit ratings distribution

AAA 3.0% AAA 15.8% AAA – AAA 0.6%

AA 3.2% AA 8.6% AA 0.9% AA 2.4%

A 12.6% A 13.4% A 16.1% A 12.6%

BBB 55.0% BBB 50.7% BBB 61.8% BBB 39.2%

Below investment grade 23.7% Below investment grade 5.8% Below investment grade 16.6% Below investment grade 39.3%

Coll. investment scheme – Coll. investment scheme – Coll. investment scheme 0.9% Coll. investment scheme –

FX – FX – FX – FX -0.4%

Cash & cash equivalents 2.5% Cash & cash equivalents 5.7% Cash & cash equivalents 3.8% Cash & cash equivalents 6.3%

Derivatives -0.1% Derivatives –

Gross redemption yield 2.84% 0.79% 4.22% 4.5%

* Source: Invesco, as of 31 March 2018. For the full objectives and investment policy please consult the current prospectus. Portfolio weightings and allocation are subject to change.

** 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.


Invesco Fixed Income: four selected funds*

Invesco Euro Bond Fund Invesco Euro Short Term Bond Fund



ScopePrimarily a diversified portfolio of sovereign and investment grade corporate bonds denominated in euros, with the flexibility to seek value across high yield, emerging markets and European currencies.

Primarily a diversified portfolio of short dated sovereign and investment grade corporate bonds denominated in euros, with flexibility to invest in longer dated, non-euro or high yield bonds in measured amounts.

Primarily a diversified portfolio of global investment grade corporate bonds, with the flexibility to seek value in high yield bonds for so-called “rising stars” and

“fallen angels” as well as subordinated debt.

With a flexible multi-sector approach, the fund managers combine investment grade corporates, emerging market debt, bank loans and high yield bonds.** The strategic asset allocation process applies a risk balanced approach to each of the credit sectors.

Goals*The fund aims to provide long-term capital growth, together with income. It will seek to consistently outperform the benchmark over the medium to long term.

The fund aims to provide long-term capital growth and attractive yield relative to peers, while mitigating the impact of a rising interest rate environment.

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 seeks to provide attractive returns over a full market cycle through security selection, strategic and tactical asset allocation and a disciplined risk management process.

Portfolio asset allocation Government Bonds 25.0%









Global Investment Grade 34.0%

Bank Loans 21.4%

High Yield 15.2%

Emerging Market 14.9%

Opportunistic 14.6%

Average rating (ø) BBB A- BBB BBB-

Credit ratings distribution

AAA 3.0% AAA 15.8% AAA – AAA 0.6%

AA 3.2% AA 8.6% AA 0.9% AA 2.4%

A 12.6% A 13.4% A 16.1% A 12.6%

BBB 55.0% BBB 50.7% BBB 61.8% BBB 39.2%

Below investment grade 23.7% Below investment grade 5.8% Below investment grade 16.6% Below investment grade 39.3%

Coll. investment scheme – Coll. investment scheme – Coll. investment scheme 0.9% Coll. investment scheme –

FX – FX – FX – FX -0.4%

Cash & cash equivalents 2.5% Cash & cash equivalents 5.7% Cash & cash equivalents 3.8% Cash & cash equivalents 6.3%

Derivatives -0.1% Derivatives –

Gross redemption yield 2.84% 0.79% 4.22% 4.5%

* Source: Invesco, as of 31 March 2018. For the full objectives and investment policy please consult the current prospectus. Portfolio weightings and allocation are subject to change.

** 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.

Please read the risk warnings related to these funds on page 20.

“ Depending on your view of the effects of the likely coming interest rate hikes, you can choose from a comprehensive range of strategies and funds to help meet your objectives.”


Invesco Euro Bond Fund Asset allocation targets relative value opportunities across the full breadth of euro bond markets

The Invesco Euro Bond Fund1 utilises the flexibility of its guidelines within a clearly defined investment process to capture attractive investment opportunities through asset allocation, security selection and relative value trades.

Why the Invesco Euro Bond Fund?

• Flexible approach The investment focus is on euro-denominated sovereign and corporate bonds, with scope to take positions in high yield sovereigns and corporates, securitised assets and emerging markets. The fund managers can invest globally in euro-denominated debt, and they use active currency management. Derivatives can be used for risk mitigation and investment purposes.

• Asset allocation With a strong focus on asset allocation, the fund managers target strategic alpha while also leveraging from the global research team to select individual securities.

• Strong performance track record The fund is in the first quartile of its peer group (Mstar GIF OS Sector: EUR Diversified Bond) over 1, 3 and 5 years2.

Fund characteristics

“ The growth and inflation outlook remains challenged in Europe, but we believe this uncertainty will continue to present opportunities best captured by the flexibility of the fund.”

Past performance is not a guide to future returns.1 As of 7 August 2015, the name of the fund has been changed to Invesco Euro Bond Fund. The fund

objectives and reference index have also been changed with the same effective date. For the full objective and investment policy please consult the current prospectus.

2 Source: Morningstar as of 31 March 2018. Any reference to a ranking, a rating or an award provides no guarantee for future performance results and is not constant over time.

Lyndon Man Fund manager

Invesco Euro Bond Fund

Euro-denominated bonds(minimum 70%)*

Core

Maximum of 30%Non-euro bonds

Typically between +/- 3 years versus the benchmark

Durationmanagement

To capture rising star opportunities and for diversification benefits

High yieldcorporate bonds

Non-euro currency exposure typicallyless than 15%

Currency

Used for efficient portfolio management and investment purposes

Derivatives

ObjectiveTargeted

risk- adjustedreturns

* Whilst the Prospectus states the fund will primarily invest in a diverse portfolio of euro denominated bonds, historically the allocation to non-euro denominated bonds has been less than 30%, which allows the fund to be included in the Morningstar GIFS EUR Diversified Bond. For the full objectives please consult the current prospectus. For illustrative purposes only. Source: Invesco, as of 31 March 2018.


Fund objectives The Fund aims to provide long-term capital growth, together with income. The Fund seeks to achieve its objective by investing primarily in a diversified portfolio of debt securities denominated in Euro, issued worldwide by corporations, governments, supranational bodies, local authorities and national public bodies.1

Past performance is not a guide to future returns.1 For the full objectives and investment policy please consult the current prospectus.2 The investment objective and reference index for the fund was changed on 7 August 2015. From this date

the reference index changed from Barclays Pan European Aggregate Index to Barclays Euro Aggregate Index. In addition, the fund’s peer group changed from Morningstar GIFS Europe Bond to Morningstar GIFS EUR Diversified Bond. For the full objective and investment policy please consult the current prospectus.

Fund facts

Fund name Invesco Euro Bond Fund2

Fund manager Lyndon Man, Luke Greenwood

Fund volume EUR 730.25mn

Launch date 1 April 1996

Reference index Bloomberg Barclays Euro-Aggregate Index

Base currency EUR

Domicile Luxembourg

Legal structure Luxembourg SICAV with UCITS status

Annual management fee 0.75%

ISIN code A Shares (EUR, acc) LU0066341099

Lyndon Man Fund manager

Indexed performance

Invesco Euro Bond Fund Bloomberg Barclays Euro-Aggregate Index

90

100

110

120

130

03/13 03/14 03/15 03/16 03/17 03/18

Cumulative performance (%) YTD 1 year 3 years 5 years

Fund 0.14 2.73 2.21 27.30

Index 0.73 2.37 2.48 19.51

Quartile ranking 2 1 1 1

Calendar year performance (%) 2013 2014 2015 2016 2017

Fund 2.49 13.05 4.09 3.27 2.31

Index 2.17 11.10 1.00 3.32 0.68

Rolling 12-month returns (%) 31.03.1331.03.14

31.03.1431.03.15

31.03.1531.03.16

31.03.1631.03.17

31.03.1731.03.18

Fund 6.10 17.40 -2.11 1.63 2.73

Index 4.88 11.19 0.68 -0.56 2.37

5 year risk-return statisticsFund Peer group percentile

Sharpe Ratio (arith.) 1.16 8

Information Ratio (arith.) 0.62 5

Source: © 2018 Morningstar. Indexed performance: performance of an investment of 100 in share class currency. Gross income re-invested to 31 March 2018 unless otherwise stated. The figures do not reflect the entry charge payable by individual investors. Mstar GIF OS Sector: EUR Diversified Bond


Invesco Euro Short Term Bond Fund More than Cash Plus

The Invesco Euro Short Term Bond Fund uses the flexibility of its guidelines to capture attractive investment opportunities by actively managing short-term bonds whilst reducing the fund’s interest rate sensitivity compared to the market.

Why the Invesco Euro Short Term Bond Fund?

• High quality core For their fund, the fund managers predominantly invest in euro-denominated investment grade bonds with a maximum maturity of 5 years. They maintain a short duration profile, typically between 1 and 3 years.

• Flexibility to seek value The fund managers can target opportunities in global bond markets. They can tactically invest in high yield and longer dated bonds, and they may selectively take active currency positions.

• Strong performance track record The fund is in the first quartile of its peer group (Mstar GIF OS Sector: EUR Diversified Bond - Short Term) over 5 years1.


“ In my view, the current interest rate environment lends itself to actively managed, less interest-rate-sensitive funds, and our job is to try and protect capital whilst maximising the return.”

Past performance is not a guide to future returns. Any reference to a ranking, a rating or an award provides no guarantee for future performance results and is not constant over time.1 Source: Morningstar, as of 31 March 2018.

Luke Greenwood Fund manager

Invesco Euro Short Term Bond Fund

Core

Maximum of 30%*Non-euro bonds

Typically 1–3 yearsDurationmanagement

We do not see exposure exceeding 8%

High yield bonds

Non-euro exposure typically less than 5%

Currency


Derivatives

ObjectiveTargeted


* Whilst the Prospectus allows for more flexibility, historically the fund has not exceeded the allocations shown which allows the fund to be included in the Morningstar GIF OS EUR Diversified Bond – Short Term sector. For illustrative purposes only. For the full objectives and investment policy please consult the current prospectus. Source: Invesco, as of 31 March 2018.

Euro-denominated investment grade bonds with a maximum maturity of 5 years


Past performance is not a guide to future returns.1 Source: Invesco, as of 31 March 2018. For the full objectives and investment policy please consult the current

prospectus.

Fund objectives The objective of the Fund is to provide capital growth by investing primarily in short-term investment grade debt securities (including Money Market Instruments and money market funds) denominated in Euros. For the avoidance of doubt, the Fund will not invest greater than 10% of its NAV in money market funds1

Fund facts

Fund name Invesco Euro Short Term Bond Fund



Launch date 4 May 2011

Reference index Bloomberg Barclays Euro Aggregate 1–3 Year Index

Base currency EUR

Domicile Luxembourg




Luke Greenwood Fund manager

Indexed performance

Invesco Euro Short Term Bond Fund Bloomberg Barclays Euro Aggregate 1-3 Year Index

95

100

105

110

03/13 03/14 03/15 03/16 03/17 03/18


Fund -0.35 0.09 0.36 6.05

Index 0.02 0.07 0.69 4.40



Fund 2.41 2.49 0.37 0.84 0.50

Index 1.96 1.80 0.59 0.59 -0.12


31.03.1431.03.15

31.03.1531.03.16

31.03.1631.03.17

31.03.1731.03.18

Fund 3.14 2.46 -0.60 0.87 0.09

Index 2.12 1.53 0.45 0.17 0.07




Source: © 2018 Morningstar. Indexed performance: performance of an investment of 100 in share class currency. Gross income re-invested to 31 March 2018 unless otherwise stated. The figures do not reflect the entry charge payable by individual investors. Mstar GIF OS Sector: EUR Diversified Bond - Short Term


Invesco Global Investment Grade Corporate Bond Fund A theme based global approach

The Invesco Global Investment Grade Corporate Bond Fund uses the flexibility of its guidelines to target alpha through global thematic ideas. The approach builds on the traditional tenets of credit investing (market direction, security selection and market timing) but with three additional stages to the investment process to refine the investment strategy: thematics, relative value and macro overlays.

Why the Invesco Global Investment Grade Corporate Bond Fund?

• Thematics Identifying what we believe to be the key long term drivers of credit markets going forward.

• Relative value Credit cycles have changed since the global financial crisis. The timing and differing reactions of central banks worldwide led to a dispersion, which has led to a variation in terms of where regions, sectors and asset classes sit in the credit cycle therefore offering relative value opportunities.

• Macro overlays In order to efficiently hedge credit risk during periods of corporate bond weakness, the team use derivatives to mitigate the negative effects. This means they do not have to trade in and out of corporate bonds, which can be costly, to improve the risk-adjusted returns.


“ I believe our theme based approach to investing will be key to delivering attractive risk-adjusted returns going forward.”

Lyndon Man Fund Manager


Investment grade credit (Minimum 70%)*

Core

No internal limit – positions sized using units of risk**

Country/sectorexposure

Typically between 5–10% to capture rising star opportunities

High yield bonds

Duration is generally in line with the benchmark (+/- 1 year)

Duration management

Non-US dollar exposure predominantly hedged

Currency


Derivatives

ObjectiveTargeted


** While 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. Source: Invesco, as of 31 March 2018.


Past performance is not a guide to future returns.1 For the full objectives and investment policy please consult the current prospectus.

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 securities.1

Fund facts

Fund name Invesco Global Investment Grade Corporate Bond Fund


Fund volume USD 1.58bn

Launch date 1 September 2009

Reference index Bloomberg Barclays Global Aggregate Corporate Index (Hedged USD)

Base currency USD

Domicile Luxembourg



ISIN code A Shares (USD, ad) LU0432616141

Indexed performance

Invesco Global Investment Grade Corporate Bond Fund Bloomberg Barclays Global Aggregate Corporate Index (Hedged USD)

90

100

110

120

130

03/13 03/14 03/15 03/16 03/17 03/18


Fund -1.72 2.56 9.31 24.89

Index -1.41 2.97 8.81 18.47



Fund 1.03 10.12 1.04 6.07 6.62

Index 0.07 7.60 -0.24 6.22 5.70


31.03.1431.03.15

31.03.1531.03.16

31.03.1631.03.17

31.03.1731.03.18

Fund 3.77 10.11 0.57 5.97 2.56

Index 2.26 7.08 1.03 3.99 2.97




Source: © 2018 Morningstar. Indexed performance: performance of an investment of 100 in share class currency. Gross income re-invested to 31 March 2018 unless otherwise stated. The figures do not reflect the entry charge payable by individual investors. Mstar GIF OS Sector: Global Corporate Bond - USD Hedged Sec.


Invesco Active Multi-Sector Credit Fund Dynamic approach to investing in fixed income

Looking at the overall landscape of fixed-income markets, it is clear that it is going to be difficult to generate returns from plain vanilla, traditional fixed income type instruments. The fund managers apply a flexible and dynamic multi-sector strategy and invest in a range of core credit asset classes: investment grade, bank loans/floating rate securities1, emerging market debt and high yield bonds.

Why the Invesco Active Multi-Sector Credit Fund?

• True multi-sector approach Coverage of credit markets globally with expertise in the respective regions, industries, issuers and securities. The strategic allocation is grounded in “risk balance”, each asset class contributes an equal amount of risk to the portfolio. We believe a risk parity approach results in a more stable, diversified asset allocation over time. Tactical asset allocation is employed seeking to maximise returns arising from varying asset class returns through the credit cycle. The approach includes an allocation to replicate bank loan exposure, which has historically provided stable and comparatively high returns. The fund managers are convinced that the bank loans’ floating-rate nature fits perfectly into our current interest rate environment.

• Integrated risk management The fund managers apply real time portfolio risk management across the entire portfolio. With a holistic view to portfolio risk they make sure that there are no unintended concentrations in risk positioning.

• Flexible and efficient approach Opportunistic allocation to tactically take advantage of relative value opportunities as the fund managers see fit. They can use derivatives for investment purposes resulting in the efficient implementation of credit sector exposure.


“ Credit investing has the potential to mitigate the negative impact of a rising interest rate environment.”Joseph Portera Leading portfolio manager

Past performance is not a guide to future returns.1 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.

Strategic & Tactical Fund Allocation

Well-defined tactical allocation ranges establish opportunity for portfolio managers to exercise discretion.Risk parity across sectors ensures return is driven by high-conviction tactical allocation and security selection decisions.

1 Opportunistic Credits can consist of bonds from sectors including (but not limited to) RMBS, CMBS Convertible Bonds

Investment Grade Non-Investment Grade

Opportunistic Bucket and Cash

15%

30%

40%

0%

15%15%

30%

15% 15%

30%

40%

60%

0%

30%

Max Allocation

Min Allocation

Investment Grade Corporates

Emerging Market Dept

Bank Loans High Yield Bonds Opportunistic Credit & Risk Management1

Short Term Cash

Full Cycle Strategic Allocation


Past performance is not a guide to future returns.1 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. Portfolio weightings are subject to change without notice.

2 Name and strategy changed from Invesco Absolute Return Bond Fund on 18.09.2014. The original strategy started at 14 October 1999.

Fund objectives The Fund aims to provide a positive total return over a full market cycle. The Fund seeks to achieve this through an active strategic and tactical asset allocation process to credit-related debt securities globally. With a flexible multi-sector approach, the fund managers combine investment grade corporates, emerging market debt, bank loans and high yield bonds.1

Fund facts

Fund name Invesco Active Multi-Sector Credit Fund2

Fund manager Joseph Portera (lead) and the Multi-Sector Credit Team


Launch date 18 September 20142

Base currency EUR

Domicile Luxembourg




Joseph Portera Leading portfolio manager

Indexed performance


95

100

105

110

115

08/14 02/15 08/15 02/16 08/16 02/17 08/17 02/18

Cumulative performance (%) YTD 1 year 3 yearsSince

inception2

Fund -1.30 0.86 5.52 8.53

Quartile ranking 3 2 1 –


Fund – – -0.91 5.90 4.44


31.03.1431.03.15

31.03.1531.03.16

31.03.1631.03.17

31.03.1731.03.18

Fund – – -2.62 7.44 0.86

Risk-return statistics since inception2

Fund Peer group percentile


Source: © 2018 Morningstar. The track record of the share class is shown from 18 September 2014 onwards as the name of the fund and the objective changed on that date. Gross income re-invested to 31 March 2018 unless otherwise stated. The figures do not reflect the entry charge payable by individual investors. Gross income re-invested to 31 March 2018. All performance data on this factsheet is in the currency of the share class. Please refer to Page 20 for Risk Warnings and Important Information. There is currently a discretionary cap on the ongoing charge of 0.75% in place. This discretionary cap may positively impact the performance of the Share Class.

ContactAmsterdam +31 2 05 61 62 62 www.invesco.nlBrussels +32 26 41 01 70 www.invesco.beFrankfurt +49 69 29807 800 www.de.invesco.comMadrid +34 91 78 13 02 0 www.invesco.esMilan +39 02 88074 1 www.invesco.itParis +33 1 56 62 43 77 www.invesco.frStockholm +46 84 63 11 09 www.invesco.euVienna +43 1 316 20 0 www.invesco.atZurich +41442879000 www.invesco.ch

www.invesco.eu

Risk warningsThe 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 uses derivatives (complex instruments) for investment purposes, which may result in the Fund being significantly leveraged and may result in large fluctuations in the value of the fund.Invesco Euro Bond Fund, Invesco Global Investment Grade Corporate Bond Fund: Investments in debt instruments which are of lower credit quality may result in large fluctuations in the value of the Fund. The fund may invest in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events. Invesco Euro Bond Fund, Invesco Active Multi-Sector Credit Fund: The fund may hold a large amount of Asset Backed Securities (ABS) (complex instruments) as well as other lower quality debt securities which may impact the liquidity of the fund under certain circumstances. The fund may invest in distressed securities which carry a significant risk of capital loss. Invesco Active Multi-Sector Credit Fund: As a large portion of the fund is invested in less developed countries, you should be prepared to accept significantly large fluctuations in the value of the fund. Investments in debt instruments which are of lower credit quality may result in large fluctuations in the value of the Fund.

Important informationThis marketing document is exclusively for use by Professional Clients and Financial Advisers in Continental Europe (as defined below) and Qualified Investors in Switzerland. By accepting this document, you consent to communicate with us in English, unless you inform us otherwise. This document is not for consumer use, please do not redistribute. Data as at 31.03.2018, unless otherwise stated. This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities. Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. For more information on our funds, please refer to the most up to date relevant fund and share class-specific Key Investor Information Documents, the latest Annual or 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. 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. 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 funds 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 funds are available only in jurisdictions where their promotion and sale are permitted. Not all share classes of the funds 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 (accumulation - EUR) for Invesco Euro Bond and Invesco Euro Short Term Bond funds and Class A (Annual Distribution – USD) for Invesco Global Investment Grade Corporate Bond Fund exclusively. The funds are domiciled in Luxembourg.For the distribution of this document, Continental Europe is defined as Austria, Belgium, Finland, France, Germany, Italy, 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. Paying agent in Switzerland: BNP PARIBAS SECURITIES SERVICES, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002 Zürich. Belgium, Finland, France, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden: This document is issued by Invesco Asset Management S.A., 16-18 rue de Londres, 75009 Paris, France. 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.invesco.eu[EMEA3483/2018]