Third Quarter 2012
Invesco Balanced-Risk Allocation Fund
This marketing document is exclusively for use by Professional Clients and financial advisors in Continental Europe and is not for consumer use. Please do not redistribute this document.
Table of Contents
2
1. Invesco Organizational Structure
2. Fund Overview and Investment Process
3. Fund Performance and Positioning
4. Additional Information
1. Invesco Organizational Structure
Invesco Investment Capabilities
4
Invesco Asia-Pacific
Investment Focus: Asian ex Japan Greater China Japan Australia Locations: Beijing, Hong Kong, Melbourne, Shenzhen, Sydney, Taipei, Tokyo
Invesco Fundamental Equities
Investment Focus: US growth equity US core equity US value equity International and global
growth equity Sector equity Balanced portfolios Locations: Austin, Houston, San Francisco
Invesco Perpetual
Investment Focus: • Global and regional
equities including UK, European, Asian, Japanese and emerging markets
• Fixed income Locations: Henley, UK
Invesco Unit Investment Trusts
Investment Focus: Equity trusts Closed-end trusts Tax-free fixed-income
trusts Taxable fixed-income
trusts Location: Chicago
Source: Invesco. Client-related data, investment professional and employee data are as of 30 June 2012. Invesco Ltd. assets under management are as of June 30, 2012, and include all assets under advisement, distributed and
overseen by Invesco, including those of its affiliates Invesco Distributors, Inc. and Invesco PowerShares Capital Management LLC, which have an agreement with Deutsche Bank to provide certain marketing services for the
PowerShares DB products. Invesco PowerShares Capital Management LLC is the sponsor for the PowerShares QQQ and BLDRS products and unit investment trusts. ALPS Distributors, Inc. is the distributor of PowerShares QQQ,
BLDRS Funds and the PowerShares DB Funds. Invesco PowerShares Capital Management LLC and Invesco Distributors, Inc. are wholly owned, indirect subsidiaries of Invesco Ltd. Invesco Distributors, Inc. is the US distributor for
Invesco Ltd.’s retail products. Invesco Ltd. is not affiliated with ALPS Distributors, Inc. or Deutsche Bank. The listed centers do not all provide products or services that are available in all jurisdictions, nor are their products and
services available on all platforms. The entities listed are each wholly owned, indirect subsidiaries of Invesco Ltd., except ALPS Distributors Inc., Deutsche Bank and Invesco Great Wall in Shenzhen, which is a joint venture between
Invesco and Great Wall Securities, and the Huaneng Invesco WLR Investment Consulting Company Ltd. in Beijing, which is a joint venture between Huaneng Capital Services and WL Ross & Co. Please consult your Invesco
representative for more information.
Intentional InvestingSM is the science and art of investing with purpose, prudence and diligence. It‘s the philosophy that forms the foundation of our „investors first“ approach, exemplified by our commitment to investment excellence, depth of investment capabilities and organizational strength. As an independent firm, our global organization is solely focused on investment management: More than 600 investment professionals Global assets under management
of US$672.8 billion Investment expertise in 11 countries More than 6,000 employees worldwide
Invesco Global Strategies
Investment Focus: Global equity (global, non-
US and emerging market equities)
Canadian equities Global quantitative equity
(quantitative active, enhanced and long/short strategies)
Global asset allocation (global macro, risk parity, commodities and active balanced solutions)
Locations: Atlanta, Boston, Frankfurt, Melbourne, New York, Tokyo, Toronto
Atlantic Trust
Investment Focus: High-net-worth wealth
management US-equities; master
limited partnerships (MLPs)
Multi-manager investment program
Locations: Atlanta, Austin, Baltimore, Boston, Chicago, Denver, Houston, New York, Newport Beach, CA, San Francisco, Washington, D.C.
Invesco Fixed Income
Investment Focus: • Global money markets
and cash management • Stable value • Global and US broad
fixed income • Global alternatives and
bank loans Locations: Chicago, Hong Kong, Houston, London, Louisville, Melbourne, New York, Palm Harbor, FL, San Diego, Tokyo
WL Ross & Co.
Investment Focus: Distressed and
restructuring private equities
Energy private equities Locations: Beijing, Mumbai, New York, Tokyo
Invesco Real Estate
Investment Focus: Global direct real estate
investing Global public real estate
investing Locations: Atlanta, Dallas, Hong Kong, London, Luxemburg, Madrid, Munich, New York, Newport Beach, CA, Paris, Prague, San Fransisco, Seoul, Shanghai, Singapore, Tokyo
Invesco PowerShares
Investment Focus: Index-based ETFs and ETNs and actively managed ETFs Domestic and international
equity Taxable and tax-free fixed
income Commodities and
currencies Location: Chicago
Invesco Canada
Investment Focus: Trimark Investment Canadian, regional,
sector and global equity Canadian and global
fixed income Balanced portfolios Locations: Toronto
Invesco Private Capital
Investment Focus: Private equity funds of
funds Customized portfolios Locations: London, New York, San Francisco
Invesco Global Asset Allocation Capabilities
Source: Invesco. Data as of 30/09/12.
Balanced-Risk Allocation Strategy
Balanced-Risk Retirement Strategy
Premium Income Strategy
Risk Parity Strategies US$16.0 B
Global Asset Allocation
$23.8 B
Balanced-Risk Commodity Strategy
Commodity Strategies US$1.1 B
Global Market Strategies
Active Balanced
Market Selection Strategies US$6.7 B
US$23.8 billion in assets
Team founded in 2000
10 team members with over 17 years average experience
5
Invesco Global Asset Allocation Team
As of 09/12. The investment team is supported by 4 traders based in London, Hong Kong and Atlanta, 4 dedicated Operations full time
employees and 2 product managers. The CFA® designation is globally recognized and attests to a charterholder’s success in a rigorous and
comprehensive study program in the field of investment management and research analysis. *The primary responsibilities of the client portfolio
manager (CPM) are to represent the investment team in the marketplace and to help manage the team’s business responsibilities. The CPM does
not manage fund assets.
6
Team Member In the Industry Since With the Firm Since Education
Scott Wolle, CFA Chief Investment Officer
1991 1999 Virginia Tech, B.Sc. Duke University, M.B.A.
Mark Ahnrud, CFA Portfolio Manager
1985 2000 Babson College, B.Sc. Duke University, M.B.A.
Chris Devine, CFA Portfolio Manager
1996 1998 Wake Forest University, B.A. University of Georgia, M.B.A.
Scott Hixon, CFA Portfolio Manager, Head of Investment Research
1992 1994 Georgia Southern University, B.B.A. Georgia State University, M.B.A.
Christian Ulrich, CFA Portfolio Manager
1987 2000 KV Zurich Business School, Switzerland
John Centner Investment Systems Analyst
1999 2012 BA, University of Tennessee
Raymond Fu Quantitative Analyst
2007 2007 Georgia Institute of Technology, B.Sc. Georgia State University, M.S.
David Gluch, CFA Client Portfolio Manager
1995 1995 University of Texas, B.B.A.
Mike McHugh, CFA Client Portfolio Manager
1996 1998 Bellevue University, B.S.
Dr. Bernhard Pfaff Portfolio Manager
1998 2005 University of Freiburg i. Br., Doctorate Degree University of Freiburg i. Br.
2. Investment Process
Invesco Balanced-Risk Allocation Fund Overview
1The Fund will make significant use of financial derivative instruments for investment purposes. This means that the net asset value of the Fund may, at times, be highly volatile. The use of financial derivative instruments involves certain risks (including market or communication breakdown) and there is no assurance that the objectives for the use of such instruments will be achieved. Please refer to the risk warnings at the end of this presentation.
2The aggregate notional/contract value of long financial derivative instruments positions can be as much as 200% (expressed in net assets of the fund).
8
Total return asset allocation solution that seeks to balance the risk across economic outcomes.
Balanced-Risk Allocation Fund1
Strategic Asset Allocation:
Balance risk equally among long-only investments. Economic outcomes covered by investments in derivatives of equities, government bonds and commodities2
Tactical Allocation:
Uses active positioning to enhance return
Invesco Balanced-Risk Allocation Fund 3-Step Investment Process
For illustrative purposes only. Although every effort will be made, it cannot be guaranteed that the stated targets will be reached.
9
Focus on Economic Diversification
Seeks Intelligent Beta: purpose-build asset class exposures
Targets highly liquid assets Asset
Selection
1
Seeks to balance risk across assets
Aims to minimize risk of large drawdowns Portfolio
Construction
2
Goal of capturing additional return with active positioning
Aims to adapt to the current market environment Active
Positioning
3
Str
ate
gic
Tacti
cal
Invesco Balanced-Risk Allocation Fund Different Economic Scenarios are likely to favor different Asset Classes
Source: Invesco analysis. For illustrative purposes only.
10
Included: Commodities
Excluded:
Direct Real Estate
Infrastructure
TIPS
Inflationary Growth
Included: Developed Equities
Excluded:
Emerging Equities
Private Equity
High Yield/Credit
Non-Inflationary Growth
Long-Term Government Bonds (hedged)
Recession
Growth Assets
Inflation Hedges
Deflation Hedges
11
Investment Objectives by Asset Class
Source: Invesco analysis. For illustrative purposes only.
Invesco Balanced-Risk Allocation Strategy
• High liquidity: at least $1 billion in daily trading volume standardized to 10% volatility
• Minimize counter-party exposure
• Transparent pricing
Equities
Non-Inflationary Growth
Objective: Attractive Return per Unit of Risk
Fixed Income
Recession
Objective: Effective “Shock Absorber” During Recessions & Crises
Commodities
Inflationary Growth
Objectives: Attractive Return per Unit of Risk High Correlation with Unexpected Inflation
Performance by Market Capitalization
Invesco Balanced-Risk Allocation Strategy Step one: asset selection and equity exposure design
Sources: THOMSON REUTERS DataStream, MSCI Inc. via FactSet Research Systems, Inc. and Invesco analysis. Maximum and minimum rolling 10 year Sharpe ratios from 31/12/81 through 31/12/11. Sorted by 31/12/11 market capitalization in ascending order. For illustrative purposes only.
Balances Risk: With no clear indication of higher Sharpe ratios for larger markets, the appropriate allocation decision is based on an equal risk contribution.
-1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00
US
UK
Japan
Canada
France
Germany
Switzerland
Australia
Sweden
Spain
Hong Kong
Netherlands
Italy
Singapore
Denmark
Belgium
Norway
Austria
Range of Sharpe ratios
Eq
uit
y M
arket
(sorte
d b
y m
arket
cap
itali
zati
on
)
Avoids Concentration Risk: Capitalization-based benchmarks result in overly concentrated portfolios without an improvement in expected return.
12
Invesco Balanced-Risk Allocation Strategy Step one: asset selection and fixed income exposure design
Source: Invesco analysis. *Credit Default Swaps.
1For illustrative purposes only.
Asset Selection: Fixed income assets should be chosen on the basis of their ability to react in an uncorrelated way to macroeconomic and/or market dislocations. Exposures should reflect volatility and quality characteristics.
Duration Weights: Strategically, each market contributes an equal amount to portfolio modified duration. This creates a bias toward higher yielding markets.
Credit Quality Adjustment: The markets in the strategy are compared to a broad universe of countries to evaluate credit quality. The process reduces or eliminates exposure to markets whose CDS* spread is above the bottom quartile.
Credit Adjustment1
13
Universe Define universe of countries: ≥$100 billion GDP and readily available CDS spread data.
Safe-Haven Risky
Define cut-offs for safe-haven and risky assets: 25th percentile defines safe-haven and 50th represents risky.
Map the selected markets to the percentiles and weights. ≤25th percentile for full weight; median and above receive no weight.
Credit Quality Adjustment
Adjust the duration-weights to reflect country credit risk.
0% 100%
Invesco Balanced-Risk Allocation Strategy Step one: asset selection and commodity exposure design
Sources: Invesco analysis and THOMSON REUTERS DataStream. Time period represented: 12/91 – 12/11. Backwardation refers to a status where prices of futures contracts with a longer maturity are lower than the spot price of the commodity. Contango refers to a status where prices of futures contracts with a longer maturity are higher than the spot price of the commodity. Past performance is not a guarantee of future results. For illustrative purposes only.
Term Structure: Certain commodities tend to exhibit backwardation over time which contributes to positive returns
Optimal Roll: Understanding the dynamics around the differing contract maturities is important and can add value
Rebalancing: Our research shows that correlations within a commodity complex (i.e. metals) are high. Conversely, correlations across commodity complexes are low. This creates opportunities for rebalancing return.
14
WTI Crude Oil
Heizöl
Natural Gas
Gasoline
Copper
Gold
Silver
Soy Meal
Wheat
Soybean Oil
Soybeans
Corn
Live Cattle
Gasoil
Cotton
Coffee
Sugar
Aluminum
Brent
-20
-16
-12
-8
-4
0
4
8
12
16
20
-20 -15 -10 -5 0 5 10 15 20
Averag
e A
nn
uali
zed
Excess R
etu
rn
vs.
Cash
(%
)
Average Annualized Term Structure (%)
Contango
Backwardation
1/3 des gesamten Portfoliorisikos
Div. Agrar-rohstoffe
WTI / Brent Rohöl
Gold Kupfer
Invesco Balanced-Risk Allocation Fund Strategic Asset Allocation
1Can be implemented with physical securities, but is typically implemented with derivatives or financially linked instruments.
2US Commodity Futures Trading Commission.
Source: Invesco. For illustrative purposes only. For fixed income securities, modified duration is used to determine the initial risk-balanced allocation among the individual markets. These weights can be further adjusted to reflect a country’s creditworthiness. Although the objective is to achieve a risk profile corresponding to the risks of a mixed portfolio with equities and fixed income, there is no guarantee that this aim will be achieved and the net asset value of the fund can be very volatile from time to time. Asset classes are subject to change and are not buy/sell recommendations.
15
Equities1 Commodities1
1/3 Total Portfolio Risk 1/3 Total Portfolio Risk 1/3 Total Portfolio Risk
Hang Seng Index
S&P 500
Tokyo Stock Price
Index
EuroStoxx 50® Index
Russell 2000 Index
FTSE 100 Index
Japanese Gov't Bonds
US Treasuries
Canadian Gov't Bonds
Australian Gov't Bonds
German Bunds
UK Gilts
Diversified Agriculture
WTI Crude/ Brent Crude
Copper Gold
Equity, Fixed Income and Commodity exposures are achieved with 2CFTC-approved exchange traded futures and other derivative instruments (Exchange Traded Commodities (ETCs)/Exchange Traded Funds (ETFs)
Cash is invested in short term cash instruments, such as German Bills (or local equivalent), overnight deposits and money market funds
Fixed Income1
Asset Weight Risk Contribution1
Risk Contribution Asset Weight
Invesco Balanced-Risk Allocation Fund Asset Weight vs. Risk Contribution
Sources: Invesco analysis and THOMSON REUTERS DataStream. 1The risk contribution refers to Invesco’s targeted strategic allocation whereby 1/3 of the overall targeted portfolio risk is assigned to the various asset classes used within the strategy. * Risk target (standard deviation of monthly returns). For illustrative purposes only.
16
Commodities Stocks
Fixed Income
Fixed Income
Stocks
Weights drive risk allocation
Risk allocation drives weights
Stocks
Fixed Income
0%
20%
40%
60%
80%
100%
Weig
ht
%
Illustrative Equity Tilted Balanced Portfolio
Invesco Balanced-Risk Allocation Fund
Risk = 10%
Unlevered Portfolio Risk = 5.5%*
Levered Portfolio Risk = 8%*
Stocks Stocks
Commodities
Commodities
Fixed Income
Fixed Income
0%
20%
40%
60%
80%
100%
120%
140%
160%
Weig
ht
%
Active Positioning: 15-20% of Target
Risk Premia: 80-85% of Target
Invesco Balanced-Risk Allocation Fund Active Positioning: From the Strategic to the Tactical Allocation
Source: Invesco analysis. For illustrative purposes only. Although every effort will be made, it cannot be guaranteed that the stated targets will be reached. The annualized contribution to total return is the contribution on top of the cash return.
Determine whether assets are attractively priced relative to fundamentals. Classic financial concepts are utilized.
Valuation
Consider the effect of monetary policy and the economic environment on asset prices.
Economic Environment
Assess the impact of historic price movements on likely future returns.
Investor Positioning
17
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
An
nu
alized
Excess R
etu
rn
Expected Long Term Sources of Return
Invesco Balanced-Risk Allocation Fund Active Positioning: From the Strategic to the Tactical Allocation
Asset classes are subject to change and are not buy/sell recommendations. Source: Invesco analysis. Above figures do not represent specific time periods or actual portfolio results. For illustrative purposes only.
18
0%
10%
20%
30%
40%
50%
Equities Fixed Income Commodities
Ris
k (
%)
33% strategic allocation
Strategic Strategic
0%
11%
22%
33%
Equities Fixed Income Commodities
Ris
k (
%)
0%
2%
4%
6%
8%
10%
Strategic
Ris
k (
%)
8,0 %
Composition of Risk Level of Risk
Tactical Range Tactical Range
0%
2%
4%
6%
8%
10%
Tactical
Ris
k (
%)
8,0 %
6-1
0
Strategic Allocation is
calculated through
volatility and correlation
estimates and re-set
monthly
Active positioning
allows the asset
weights to deviate from
the long-term strategic
allocation and is
adjusted monthly
Depending on the
tactical indicators, the
portfolio can be
positioned within the
pre-determined risk
ranges
Scaled to a risk target
of 2%
Invesco Balanced-Risk Allocation Fund Targeted Risk Contribution Since Fund Inception*
Source: Invesco analysis. *Fund Inception: 01/09/09. Data as of 30/09/12. Based upon the targeted risk contribution.
19
Minimum (%) Average (%) Maximum (%)
Equities 16.73 35.76 49.85
Fixed Income 18.72 32.75 49.93
Commodities 22.00 31.48 39.88
33%
66%
0%
25%
50%
75%
100%
Ris
k C
on
trib
uti
on
(%
)
Equities Fixed Income Commodities
3. Fund Performance and Positioning
Invesco Balanced-Risk Allocation Fund Performance as of 30 September 2012
*Launch date: 01/09/09. As of 30/09/12. Past performance is not an indication for future performance, provides no guarantee for the future and is not constant over time. Source: Morningstar, mid to mid, gross income reinvested in fund currency. The figures do not reflect the initial charge payable by individual investors.
21
Recovery Greek Financial
Crisis Recovery
Sovereign Debt Concerns
Recovery Global Economic
Slowdown Recovery
Returns % as of 30 September 2012
3 Months YTD 2012
1 Year 3 Years
(annualized) Since Launch (cumulative)*
Since Launch (annualized)*
2011 2010 2009*
Invesco Balanced-Risk Allocation Fund (Class A acc NAV)
5.00 7.28 12.61 12.08 42.90 12.28 11.65 13.30 5.30
60% MSCI World/40% JPM Europe Gov’t Bond Index
4.53 11.41 19.61 10.07 36.26 10.56 1.57 13.53 6.06
Excess vs. Index 0.47 -4.13 -7.00 2.01 6.64 1.72 10.08 -0.23 -0.76
7.30%
1.40%
13.05%
3.17%
8.51%
-1.60%
5.46%
12.28% 13.08%
-0.76%
6.20%
-4.42%
13.94%
-0.55%
5.56%
10.56%
-20%
-10%
0%
10%
20%
09/09 - 03/10 04/10 - 06/10 07/10 - 04/11 05/11 - 09/11 10/11 - 03/12 04/12 - 05/12 06/12 - 09/12 Since Launch*
Retu
rn
(EU
R)
Balanced-Risk Allocation Fund 60% MSCI World & 40% JPM Europe Government Bond Index
Invesco Balanced-Risk Allocation Composite – EUR UCITS Performance as of 30 September 2012
*Inception date: 30/09/09. As of 30/09/12. Past performance is not an indication for future performance, provides no guarantee for the future and is not constant over time. Source: Zephyr StyleADVISOR. The performance attribution table above represents the gross performance of the Invesco Balanced-Risk Allocation Composite – EUR UCITS composite and shows the attribution to total return by asset class. The tactical attribution is the result of over-/under-weights of the various asset class exposures vs. the strategic allocation. This information is supplemental to the Invesco Balanced-Risk Allocation Composite – EUR UCITS GIPS® performance. Details of the composite can be found in the Performance Disclosures section on pages 29-30. The value of investments and income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Current tax levels may change. Depending on individual circumstances, this may affect investment returns.
22
0
20
40
60
80
100
120
140
160
180
200
0 20 40 60 80 100 120 140 160 180 200
Upsid
e (
%)
Downside (%)
IBRA Composite – EUR UCITS
60% MSCI World & 40% JPM Europe Government Bond Index
No. Months Avg Return (%)
Avg Return vs. Market
(%) Month (%) 1 Year (%) Market Benchmark (%)
Annualized Return Since Inception
(Gross) Up Down Up Down Up Down Best Worst Best Worst
Up Capture
Down Capture
R2
IBRA Composite – EUR UCITS 13.96 26 10 2.08 -1.40 1.68 -0.03 4.12 -3.30 18.57 8.96 94.8 5.1 0.1
60% MSCI World & 40% JPM
Europe Government Bond Index 10.07 24 12 1.77 -1.07 1.77 -1.07 4.55 -3.38 19.61 -0.50 100.0 100.0 1.0
Composite Attribution Since Inception* (Gross Annualized) %
Fixed Income 6.09
Equities 1.93
Commodities 4.09
Active Positioning 1.14
Cash 0.71
Total 13.96
Invesco Balanced-Risk Allocation Fund
Sources: Bloomberg L.P. and Invesco analysis. Daily data from 01/10/09 to 30/09/12. Volatility is measured by the daily standard deviation of the fund. The Custom Balanced Risk Allocation Style Index is represented by 60% MSCI World IndexSM, which is an unmanaged index considered representative of stocks of developed countries, and 40% JPMorgan European Government Bond Index, which is an unmanaged index considered representative of EUR sovereign debt fixed-income markets. An investment cannot be made directly in an index. Past performance cannot guarantee comparable future results. This information is supplemental to the Invesco Balanced-Risk Allocation Composite – EUR UCITS GIPS® performance. For complete performance GIPS® disclosure, see pages 29-30.
Rolling 30 Day Volatility
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
10/0
2/2
009
11/1
3/2
009
12/2
5/2
009
02/0
5/2
010
03/1
9/2
010
04/3
0/2
010
06/1
1/2
010
07/2
3/2
010
09/0
3/2
010
10/1
5/2
010
11/2
6/2
010
01/0
7/2
011
02/1
8/2
011
04/0
1/2
011
05/1
3/2
011
06/2
4/2
011
08/0
5/2
011
09/1
6/2
011
10/2
8/2
011
12/0
9/2
011
01/2
0/2
012
03/0
2/2
012
04/1
3/2
012
05/2
5/2
012
07/0
6/2
012
08/1
7/2
012
09/2
8/2
012
Vola
tility
(%
)
Invesco Balanced-Risk Allocation Fund A
60% MSCI World/40% JPM Europe Govt. Bond
23
Euroland
Hongkong
Japan
UK
US Large-Cap
US Small-Cap
Equities
Invesco Balanced-Risk Allocation Fund Targeted Active Positioning and Risk Allocation as of 30 September 2012
Source: Invesco analysis. As of 30/09/12.
Explanatory notes: The indicators (overweight, underweight, neutral) are in relation to the strategic allocation for the fund. The total target (levered) portfolio risk from the strategic allocation is 8% (approx. 2.7% from each asset class or one third of 8%, in accordance with the equal risk contribution concept). The 8 % target portfolio risk from the strategic allocation is expanded to a range of 6% - 10% for the active positioning to reflect over- and underweight positions. Target risk weights are derived from the target risk from each asset class. Asset class weights represent the month-end asset class exposure.
Risk is measured as standard deviation. Can be implemented with physical securities, derivatives or financially linked instruments.
24
Australian Gov’t
Canadian Gov’t
● German Bunds
Japanese Gov’t
UK Gov’t
US Treasuries
Overweight position Neutral position ● Underweight Position
Complex Target Marginal Risk
Contribution Target Risk Allocation
Target Notional Asset Weight
Equities 4.20 44.34 37.14
Fixed Income 2.02 21.34 72.66
Commodities 3.25 34.32 30.92
Total 9.47% 100.00% 140.72
Fixed Income Commodities
Agriculture Energy
Diversified Agriculture
Brent Crude
Precious Metals
WTI Crude
Gold Industrial Metals
Copper
4. Additional Information
Invesco Balanced-Risk Allocation Fund Targeted Notional Exposure Since Fund Launch*
Source: Invesco analysis. *Fund Launch: 01/09/09. Data from 09/09 to 09/12.
26
130%
140%
150%
160%
170%
180%
190%
200%
09.0
9
10.0
9
11.0
9
12.0
9
01.1
0
02.1
0
03.1
0
04.1
0
05.1
0
06.1
0
07.1
0
08.1
0
09.1
0
10.1
0
11.1
0
12.1
0
01.1
1
02.1
1
03.1
1
04.1
1
05.1
1
06.1
1
07.1
1
08.1
1
09.1
1
10.1
1
11.1
1
12.1
1
01.1
2
02.1
2
03.1
2
04.1
2
05.1
2
06.1
2
07.1
2
08.1
2
09.1
2
To
tal
No
tio
nal
Exp
osu
re (
%)
0%
20%
40%
60%
80%
100%
09/0
9
10/0
9
11/0
9
12/0
9
01/1
0
02/1
0
03/1
0
04/1
0
05/1
0
06/1
0
07/1
0
08/1
0
09/1
0
10/1
0
11/1
0
12/1
0
01/1
1
02/1
1
03/1
1
04/1
1
05/1
1
06/1
1
07/1
1
08/1
1
09/1
1
10/1
1
11/1
1
12/1
1
01/1
2
02/1
2
03/1
2
04/1
2
05/1
2
06/1
2
07/1
2
08/1
2
09/1
2% T
arg
ete
d A
sset
Cla
ss
Weig
hts
of
No
tio
nal
Exp
osu
re
Stocks Bonds Commodities
Invesco Balanced-Risk Allocation Fund Benefits
Please refer to the risk warnings at the end of this presentation and included in the Prospectus.
27
Seeks to balance the
risk across economic
outcomes by investing in
asset classes that are
expected to perform
differently in each
economic environment.
Unlike traditional
balanced portfolios in
which equity risk is
typically dominant, the
fund aims to limit
downside risk by
weighting each asset
class so that it
contributes a relatively
equal amount of risk to
the portfolio over time.
In addition, a tactical
asset allocation model is
applied to enhance
return potential.
Invesco Balanced-Risk Allocation Fund Fund Facts
Fund name Invesco Balanced-Risk Allocation Fund
Fund manager
Invesco Global Asset Allocation team, Atlanta
Lead, Scott Wolle, CFA
CIO, Invesco Global Asset Allocation
Launch date September 2009
Domicile Luxembourg
Legal structure Sub-fund of Invesco Funds, SICAV with UCITS status
Base currency EUR
Unit type Accumulation and distribution
Reference index 60% MSCI World / 40% JPM Europe Government Bond
Available share classes
Unit type Ccy Initial charge Annual mgmt. fee
Minimum investment
ISIN codes
A Acc EUR up to 5.25% 1.25% USD 1,500 LU0432616737
A Dist EUR up to 5.25% 1.25% USD 1,500 LU0482498176
A USD-hgd* Acc USD up to 5.25% 1.25% USD 1,500 LU0482498762
C Acc EUR up to 5.25% 0.75% USD 250,000 LU0432616810
C GBP-hgd* Acc GBP up to 5.25% 0.75% GBP 250,000 LU0432617032
C USD-hgd* Acc USD up to 5.25% 0.75% USD 250,000 LU0482498846
E Acc EUR up to 3.0928% 1.75% EUR 500 LU0432616901
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*Base currency hedged.
GIPS® Compliant Schedule of Investment Performance
Currency: EURO. *Inception date: 30/09/09. Invesco Worldwide has prepared and presented this report in compliance with the US and Canadian version of the Global Investments Performance Standards (GIPS®). For complete GIPS® disclosure, see following page. Invesco Worldwide claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Invesco Worldwide has been independently verified for the periods 1st January 2003 thru 31st December 2011. The legacy firms that constitute Invesco Worldwide have been verified since 2001 or earlier. The verification reports are available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.
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Composite Assets (EUR Millions)
Gross Rate of Return
Number of Portfolios
Composite Dispersion
Net Rate of Return
Benchmark Return Period
Total Firm Assets (EUR Billions)
2011 13.62 % 12.78 % 1.57 % N/A % N/A % 1 $ 533.0 $ 369.6 N/A %2010 15.21 14.35 13.53 N/A N/A 1 46.0 354.3 N/A
2009 (3 months) 4.10 3.90 3.81 N/A N/A 1 3.0 207.8 N/A
Annual Compound Rates of Return Ended December 31, 2011
1 Year 13.62 % 12.78 % 1.57 %
2 Years 14.41 13.56 7.39
Since Inception* 14.74 13.89 8.32
Composite 3-Yr Std Dev
Benchmark 3-Yr Std Dev
Invesco Balanced-Risk Allocation Composite – EUR UCITS
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Invesco Worldwide has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®).
Notes:
1 Invesco Worldwide (“The Firm”) manages a broad array of investment strategies around the world. The Firm comprises U.S.-based Invesco Advisers, Inc. and all wholly owned Invesco firms outside
of North America. All entities within the Firm are directly or indirectly owned by Invesco Ltd. GIPS-compliant firms whose assets are managed by subsidiaries of Invesco Ltd. are Invesco Canada
Ltd. and Atlantic Trust. Invesco Senior Secured Management, Inc. Invesco Private Capital, Inc. and Invesco PowerShares Capital Management LLC are also affiliates of the Firm. Each is an SEC-
registered investment adviser and is marketed as a separate entity. Invesco Great Wall Fund Management Co. Ltd (IGW) is a fund management company established under China Securities
Regulatory Commission’s approval. Their assets are excluded from total Firm assets. On Dec. 31, 2009, Invesco Aim Advisors, Inc. (AIM), Invesco AIM Capital Management, Inc. (ACM), Invesco
Aim Private Asset Management, Inc. (APAM) and Invesco Global Asset Management (N.A.), Inc. merged into Invesco Institutional (N.A.), Inc., which was then renamed Invesco Advisers, Inc. Prior to
2010, AIM, ACM and APAM were part of separate GIPS firms and not included in the Firm. On June 1, 2010, Invesco acquired Morgan Stanley Investment Management’s (MSIM) retail asset
business, including Van Kampen Investments. Through this transaction, Invesco acquired approximately $119 billion in assets under management. Prior to the acquisition, MSIM was GIPS compliant
and verified by an independent verifier through Dec. 31, 2009. Assets under management prior to 2010 have not been restated to reflect either the above-referenced investment adviser merger or the
MSIM acquisition. Composite history and Firm assets prior to Jan. 1, 2010, are those of its respective components.
2 The Invesco Balanced-Risk Allocation Composite - EUR UCITS objective is to provide total returns with a low to moderate correlation to traditional financial market indices. The Composite seeks to
achieve this objective by investing, under normal conditions, in derivatives and other financially linked instruments whose performance is expected to correspond to US and international fixed
income, equity and commodity markets. Relative to traditional balanced portfolios, the fund will seek to provide greater capital loss protection during down markets by using a proprietary investment
process that seeks to balance the amount of investment risk contributed by its exposure to the equity, fixed income and commodity markets. The Composite is denominated in Euro.
3 The composite is benchmarked to a custom benchmark consisting of 60% MSCI World / 40% JP Morgan Global Government Bond Europe. The benchmark is used for comparative purposes only.
Investments made by the Firm for the portfolios it manages according to respective strategies may differ significantly in terms of security holdings, industry weightings, and asset allocation from those
of the benchmark. Accordingly, investment results and volatility will differ from those of the benchmark.
4 The Balanced-Risk Allocation – EUR UCITS strategy invests primarily in long-only commodity, equity and bond futures and exchange traded commodities (ETC) in different regions around the globe
targeting equity-like returns with bond-like risk. The composite’s notional value will generally not exceed 2.5 times capital.
5 Valuations and portfolio total returns are computed and stated in Euro. The firm consistently values all portfolios each day on a trade date basis. Portfolio level returns are calculated as time-
weighted total returns on daily basis. Accrual accounting is used for all interest and dividend income. Past performance is not an indication of future results.
6 Composite dispersion is measured by the standard deviation across asset-weighted portfolio returns represented within the composite for the full year. The three-year annualized standard deviation
measures the variability of the composite and the benchmark returns over the preceding 36 months. The standard deviation is not presented when there is less than 36 months.
7 Gross-of-fee performance results are presented before management and custodial fees but after all trading commissions and withholding taxes on dividends, interest and capital gains, when
applicable. Net-of-fee performance results are calculated by subtracting the highest tier of our published fee schedule for the product from the monthly returns. The management fee is 75 basis
points.
8 The composite creation date is September 30, 2009.
9 A complete list of composite descriptions is available upon request. Polices for valuing portfolios, calculating performance, and preparing compliant presentations is available upon request.
GIPS® Compliant Schedule of Investment Performance
Invesco Balanced-Risk Allocation Composite – EUR UCITS
This marketing document is exclusively for use by Professional Clients and financial advisors in Continental Europe and is not for
consumer use. Data as at 30.09.12, unless otherwise stated. Please do not redistribute this document.
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. Whilst the overall risk of the Fund intends to be consistent with that of a balanced portfolio of equity and debt securities, this may not be achieved. The Fund will make significant use of financial derivatives for investment purposes in excess of the value of the portfolio that could lead to large fluctuations in the value of the Fund. The fund uses derivatives to gain leverage which can potentially be up to three times the value of its net assets. The Fund will gain exposure to commodities to diversify the risk of the fund. Commodities are generally considered to be high risk investments and may result in large fluctuations in the value of the Fund. Debt instruments are exposed to credit risk which is the ability of the borrower to repay the interest and capital on the redemption date. If you are unsure of any of these risks please contact your advisor. Opinions and forecasts are subject to change without notice. For more information on our funds, please refer to the most up to date relevant fund and share class-specific Key Investor Information Documents, the latest Annual or Semi Annual Reports and the latest Prospectus. This information is available using the contact details of the issuer and is without charge. The information is also available from our website www.invescoeurope.com
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 document is not an invitation to subscribe for shares in the fund and is by way of information only.
Not all share classes of this fund may be available for public sale in all jurisdictions and not all share classes are the same nor do they necessarily suit every investor. There may be differences in fee structures, in minimum investment amounts, etc. Please check the most recent version of the fund prospectus in relation to the criteria for the individual share classes and contact your local Invesco office for full details of the fund registration status in your jurisdiction. Please be advised that the information provided in this document is referring to Class A (accumulation - EUR) exclusively.
Denmark: The fund is not registered for sale in these jurisdictions. This document is provided only at the request of a professional client or qualified investor and is intended for the sole use of this person. Portugal: The fund's shares are not currently registered for sale. As a consequence, the fund’s shares may not be offered or distributed by way of public advertisement or public offer in this/these jurisdiction(s). The fund's shares may only be offered and the legal offering documents (KIID, prospectus, annual reports) and marketing materials of the fund may only be distributed in this/these jurisdiction(s) without public solicitation and in compliance with the private placement rules set forth in the laws, rules and regulations of the jurisdiction concerned. Germany, Austria and Switzerland: This document is issued in Germany by Invesco Asset Management Deutschland GmbH regulated by Bundesanstalt für Finanzdienstleistungsaufsicht. This document is issued in Austria by Invesco Asset Management Österreich GmbH and in Switzerland by Invesco Asset Management (Schweiz) AG. Subscriptions of shares are only accepted on the basis of the most up to date legal offering documents. Swiss professional clients should consider this document only in connection with the relevant monthly fund fact sheet which contains further performance information. The legal offering documents (fund & share class specific Key Investor Information Document, prospectus, annual & semi-annual reports, articles and trustee deed) are available free of charge at our website www.invescoeurope.com and from the issuers: Invesco Asset Management Deutschland GmbH, An der Welle 5, D-60322 Frankfurt am Main, Invesco Asset Management Österreich GmbH, Rotenturmstrasse 16-18, A-1010 Vienna, and Invesco Asset Management (Schweiz) AG, Stockerstrasse 14, CH-8002 Zurich. Paying agent for the
funds registered for sale in Switzerland: BNP PARIBAS SECURITIES SERVICES, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002 Zurich.
Important Information
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