Reporting Sheet - Invesco Europe

Invesco Pan European High Income Fund
Monthly Fund Report January 2015 (covering December)
January 2015
This marketing document is exclusively for use by Professional Clients and Financial Advisers
in Continental Europe, Qualified Investors in Switzerland and Professional Clients in Dubai,
Guernsey, Jersey, Isle of Man, Malta and the UK. This document is not for consumer use,
please do not redistribute.
Fund Facts
Fund Performance
ISIN
Bloomberg
A-shares
LU0243957312
INVCERA LX
AuM
4.75bn EUR
Fund Managers:
Paul Causer
Paul Read
Stephanie Butcher
Domicile:
Luxembourg
Reference Index:
Mstar GIF OS EUR Cautious
Allocation
1
European bond markets delivered a positive return through December with performance
once again skewed toward higher quality bonds. Falling inflation expectations, driven by
the continuing decline in crude oil prices, helped to drive government bond yields lower,
which in turn benefitted corporate bonds. Supply in the European high yield market was
relatively quiet with Barclays estimating issuance of €2.3bn across all currencies in
December 2014. According to data from Merrill Lynch, European currency high yield bonds
had a total return of -0.3%, whilst, euro investment grade corporate bonds returned 0.4%.
(all returns are hedged to euro terms). The MSCI Europe Equity index returned 3.2% (€
total return).
GIFS EUR Cautious Allocation
Fund Characteristics
Performance (EUR)
1
3M
6M
1Y
3Y
5Y
3Y
5Y
Fund (A-shares)
0.84
0.69
7.27
53.57
69.30
5.20
3.80
Reference Index
0.92
1.69
5.07
14.19
15.38
Batting Average
80.56
75.00
Active Return
-0.08
-1.00
2.20
39.38
53.92
Gain/Loss Ratio
6.44
2.62
M'Star GIF Quartile Ranking
2
2
1
1
1
Information Ratio
2.28
1.22
Source fund/sector: Morningstar as of 31 December 14, GIF OS sector = EUR Cautious Allocation Sector
Sharpe Ratio
2.19
1.11
Source index: Morningstar as at 31 December 14, on a total return basis in EUR
4.50
6.66
1
Alpha (statistical)
Tracking Error
(Annualised Data)
Source: Morningstar as of 31 December 14
Awards & Gradings
Morningstar Rating 31.12.14
Fund returns on mid-to-mid basis, gross income re-invested, cumulative, in fund currency. The figures do not
reflect the entry charge payable by individual investors. Past performance is not an indication of future
performance, provides no guarantee for the future and is not constant over time. Investors must be
aware that their investment may be subject to the risk of adverse foreign exchange rate movements. Current
tax levels may change. Depending on individual circumstances, this may affect investment returns.
Fund Positioning
The fund is exposed to larger, high quality, well established companies that we consider
less likely to default. The key exposure within the fund remains bank capital, in particular
subordinated debt. These securities provide an additional amount of yield to compensate
for their subordinated capital structure. We still retain our allocation to high quality
government bonds, as well as a significant weighting to cash for liquidity purposes. This is
part of a defensive strategy that means the fund can react quickly when opportunites
present themselves. In equities, we remain focused on stocks with strong cashflow and
the ability to maintain a growing level of dividends.
Outlook
Corporate bond yields remain very low by historical standards and we have believed for
some time that many areas of the market offer an unattractive level of reward compared
to their risks. Our strategy is defensive and we have significant exposure to highly liquid
assets and cash. We believe yields in some parts of the financial sector are relatively
attractive. In our view, structural reforms within the sector remain supportive of
subordinated bank debt. We also see some opportunities in junior debt across other
sectors. One consequence of the historically low level of bond yields is that equities now
have a very low hurdle rate to beat. Given this, we would expect equities to outperform
bonds in the medium term.
© 2014 Morningstar. All Rights Reserved. The
information contained herein: (1) is
proprietary to Morningstar and/or its content
providers; (2) may not be copied or
distributed; and (3) is not warranted to be
accurate, complete or timely. Neither
Morningstar nor its content providers are
responsible for any damages or losses arising
from any use of this information.
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Invesco Pan European High Income Fund
Monthly Fund Report January 2015 (covering December)
This marketing document is exclusively for use by Professional Clients and Financial Advisers in Continental Europe, Qualified
Investors in Switzerland and Professional Clients in Dubai, Guernsey, Jersey, Isle of Man, Malta and the UK. This document is not
for consumer use, please do not redistribute. Data as at 31.12.2014, unless otherwise stated. It is not subject to German
regulatory requirements that ensure impartiality of financial analysis. Therefore, the prohibition of trading before the release of
financial analysis 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 may hold a significant amount of debt instruments which are of lower credit quality and may result in large fluctuations of the value of
the fund.
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. The distribution and the offering of the fund in certain jurisdictions may be
restricted by law. Persons into whose possession this document may come are required to inform themselves about and to comply with any
relevant restrictions. This does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to
any person to whom it is unlawful to make such an offer or solicitation. Persons interested in acquiring the 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 where applicable. 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 be advised that the information provided in this document is referring to Class A (quarterly
distribution - EUR) exclusively.
Denmark and Greece: The fund is not registered for public distribution in these jurisdictions. This document is provided only at the request of
a Professional Client or Qualified Investor and is intended for the sole use of this person. Portugal: The fund's shares are not all currently
registered for sale. As a consequence, the unregistered shares may not be offered or distributed by way of public advertisement or public offer
in this/these jurisdiction(s). The unregistered shares may only be offered and the legal offering documents (KIID, prospectus, annual reports)
and marketing materials of the fund may only be distributed in this/these jurisdiction(s) without public solicitation and in compliance with the
private placement rules set forth in the laws, rules and regulations of the jurisdiction concerned. Germany, Austria and Switzerland: This
document is issued in Germany by Invesco Asset Management Deutschland GmbH regulated by Bundesanstalt für Finanzdienstleistungsaufsicht.
This document is issued in Austria by Invesco Asset Management Österreich GmbH and in Switzerland by Invesco Asset Management (Schweiz)
AG. Subscriptions of shares are only accepted on the basis of the most up to date legal offering documents. 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 GmbH, Rotenturmstrasse 16-18, A-1010 Wien, and Invesco Asset
Management (Schweiz) AG, Stockerstrasse 14, CH-8002 Zürich, who acts as a representative for the funds distributed in Switzerland. Paying
agent for the fund distributed in Switzerland: BNP PARIBAS SECURITIES SERVICES, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002
Zürich.
www.invescoeurope.com
Dubai: Issued by Invesco Asset Management Limited, Po Box 506599, DIFC Precinct Building No 4, Level 3, Office 305, Dubai, United Arab
Emirates. Regulated by the Dubai Financial Services Authority. Jersey and Guernsey: Issued by Invesco International Limited, 2nd Floor,
Orviss House, 17a Queen Street, St Helier, Jersey, JE2 4WD. Regulated by the Jersey Financial Services Commission. In Guernsey, the fund can
only be promoted to Professional Clients. Isle of Man and Malta: Issued by Invesco Global Asset Management Limited, George’s Quay House,
43 Townsend Street, Dublin 2, Ireland. Regulated in Ireland by the Central Bank of Ireland. Investments should be based on the full details of
the Prospectuses. The Prospectuses, the fund and share class-specific Key Investor Information Documents and further information are available
from Invesco Global Asset Management Limited. The Invesco Pan European High Income Fund is an unregulated scheme that cannot be
promoted to retail clients in the Isle of Man. The participants in the scheme will not be protected by any statutory compensation scheme. UK:
Issued by Invesco Global Investment Funds Limited. Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH,
UK. Authorised and regulated by the Financial Conduct Authority. For the purposes of UK law, the fund is a recognised scheme under section
264 of the Financial Services & Markets Act 2000. The protections provided by the UK regulatory system, for the protection of Retail Clients, do
not apply to offshore investments.
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