Invesco Global Total Return (EUR) Bond Fund

Invesco Global Total Return (EUR) Bond Fund
Monthly Fund Report July 2015 (covering June)
July 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, Jersey, Guernsey, Isle of Man and the UK. This document is not for consumer use,
please do not redistribute.
1
Fund Facts
A-shares
Fund Performance
ISIN
Bloomberg
LU0534239909
INVGTRA LX
C-shares
AuM
1.41bn EUR
Fund Managers:
Paul Causer
Paul Read
Domicile:
Luxembourg
Reference Index:
Euribor 3 Month Index (EUR)
Euribor 3 Month EUR
Fund Characteristics
June was a challenging month for corporate bond markets, with uncertainty as a result of events in
Greece and a significant sell off in government bond markets both affecting performance of the asset
class. The government bond sector came under pressure at the start of the month following the release
of Eurozone inflation data that showed prices were increasing at a rate higher than the market had
expected. This caused German Bund yields to rise aggressively, which in turn had a negative impact on
the more interest rate sensitive bonds. The fall in risk appetite as a result of the Greek crisis meant
that credit spreads widened. Meanwhile in the US, the latest Federal Open Market Committee meeting
showed that committee members had pushed out their expectations for the start date for any hike in
US interest rates while also reducing their expectation for the level of interest rates in 2016 and 2017.
Nonetheless, US Treasuries were not immune to the global sell off in government markets with US
Treasuries yields higher by the end of the month. European high yield market felt the effect of higher
government bond yields and increasingly acrimonious negotiations between Greece and its creditors
both negatively affected sentiment. According to data from Merrill Lynch, Bunds returned -2.1% while
Euro investment grade corporate bonds returned 1.9%. This compares to a -1.9% return for the Gilt
market and -2.9% for sterling investment grade corporate bonds, both of which have higher duration
than their European counterparts. European currency high yield returned -1.8% with Spanish and
Italian government bonds returning -2.5 and -2.7% respectively (all total returns in Euro hedged
terms).
Performance (EUR)
1
3M
6M
1Y
3Y
Since
Inception*
32.92
3Y
5Y
Fund (A-shares)
-2.49
0.93
1.97
16.47
0.95
-
Reference Index
0.00
0.01
0.07
0.58
2.72
Batting Average
75.00
-
Active Return
-2.49
0.92
1.90
15.89
30.20
Gain/Loss Ratio
2.91
-
M'Star GIF Quartile Ranking
4
2
1
1
-
Information Ratio
1.50
-
Source fund/sector: Morningstar as of 30 June 15, GIF OS OE Global Flexible Bond-EUR Hedged Sector
Sharpe Ratio
1.49
-
Source index: Invesco as at 30 June 15, on a total return basis in EUR
3.29
-
1
Alpha (statistical)
Tracking Error
(Annualised Data)
Source: Morningstar as of 30 June 15
Awards & Gradings
Morningstar Rating 30.06.15
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
We remain relatively defensive and hold a number of government bond positions along with a
significant allocation to cash. In credit, we have a focus on the financial sector, in particular
subordinated bank debt. We also have significant exposure to corporate bonds, both high yield and
investment grade. Our high yield holdings are concentrated in the higher quality BB rating category.
Some of our investment grade allocation is in USD-denominated bonds where we see opportunities for
relative value.
Outlook
Despite the recent sell off in bond markets, bond yields remain low by historical standards with
many areas of the market in our view offering an unattractive level of reward compared to their
risks. Given this backdrop, our strategy remains defensive, with high allocations to liquidity. This
means in periods of market stress we have the ability to drive hard bargains. Many of our corporate
holdings are in the financial sector where we think the level of income available produces a
reasonable level of compensation for the credit risk on offer.
© 2015 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 Global Total Return (EUR) Bond Fund
Monthly Fund Report July 2015 (covering June)
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, Jersey, Guernsey, Isle of Man and the UK. This document is not for
consumer use, please do not redistribute. Data as at 30.06.2015, 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. The fund will invest in derivatives (complex instruments) which will be
leveraged resulting in large 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. 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 (accumulation - EUR)
exclusively. This fund is domiciled in Luxembourg.
Denmark: The fund is not registered for public distribution in this jurisdiction. This document is provided only to Professional Clients and must
not be redistributed to retail clients. 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 I nvestor 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, Talacker 34, CH-8001
Zurich, 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: 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. The Invesco Global Total Return (EUR) Bond 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-onThames, 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.
CE/UK 408/10072015
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