Invesco Global Emerging Markets Strategy November 2018 Doug - - PowerPoint PPT Presentation

Invesco Global Emerging Markets Strategy

November 2018

This presentation is for Professional Clients only and is not for consumer use.

Doug Turnbull Senior Analyst

1

Challenges and opportunities from volatility’s return § Crises to avoid § Unjustified contagion to benefit from § Misplaced fears

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The broader investment case for Global Emerging Markets § Valuation for this point in the cycle

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The Invesco GEMs proposition to benefit from that § What defines us and our investment approach § The product set and its key characteristics § How we are currently positioned

Opportunities are to be found between the headlines and the reality today

Caught in a Trap, or Islands in the Stream Looking for the opportunities after a tougher 2018

2

Challenges to avoid and opportunities to pursue

§ Growth has been stimulated for too long to create electoral success § And relied on foreign funding for their large current account deficit § Result is high inflation and currency depreciation § Rebalancing through some fiscal discipline and high rates can work, but is painful now § Focused on good companies at great valuations

Turkey – an idiosyncratic own goal An avoidable political crisis some time in the making

Source: Emerging Advisors Monthly GEM Chartbook September 2018.

• 10%
• 5%

0% 5%

• 20%
• 10%

0% 10% 20% Mar-91 Aug-96 Feb-02 Aug-07 Jan-13 Jul-18

GDP, LHS (5 y/y 3qma) Current account balance, RHS (12m, % of GDP)

Turkey: GDP & Current Account Balance

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• 50%

0% 50% 100% 100 200 300 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

FX rate index, LHS, (EOP, Jan 2010=100) PPI inflation, RHS, % 3mma

Turkey: FX vs PPI inflation

Company fundamentals: § 50% of sales from Turkey in resilient category, helped by tourism § 50% overseas in MENA countries with fast growth from low penetration levels ‘Crisis’ impact: § Reduced exposure to forex debt § Strong pricing power at low ticket level § Most costs are Lira denominated Company valuation: § Gone from being the most expensive to cheapest Coke bottler in the world § CFO: “We’re a 10-country Coke bottler valued at just $1bn. Unheard of.”

Coca Cola Icecek – looking for safe bargains Opportunities do still exist in Turkey

Source: Invesco as at 30 September 2018. 5

§ Rand liquidity and bond market depth hurting SA as a proxy § Removal of Zuma does help; institutional credibility maintained § Seeing attractively priced opportunities to add names § Russia supported by strong oil price § The risk of sanctions is casting a long shadow § But valuations are (more than) reflecting that

South Africa and Russia Babies in the bathwater?

Source: Bloomberg as at 15 October 2018. 6

90 100 110 120 130 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 South African Rand Russian Ruble

Sanctions impact: § Sanctions on banks directly would be economic warfare § More likely are tough but targeted moves Company fundamentals: § Strong brand and dominant market share § World-leading tech capabilities § Russian growth supported by oil, with upside risk from structural reform § Russia is still under-banked § Owned by the Central Bank Company valuation: § Dividend yield ~10%, 5x Price/Earnings

Sberbank – considering the facts

Source: Invesco as at 30 September 2018. 7

0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 PBC "Total social finance"

Growth rate (%y-o-y 3mma)

China – credit growth has been slowing

Source: Emerging Advisers as at 23 September 2018. 8

72 73 74 75 76 77 78 79 2013 2014 2015 2016 2017 2018

Industrial capacity utilization rate (%)

China – restructuring leading to better utilization

Source: UBS as at 15 August 2018. 9

§ DFM is a Tier 1 Chinese SOE, majority owned by the Central Government § DFM owns 50% in joint ventures with Nissan, Honda & Peugeot in China, which account for over 90% of DFM’s earnings § In 2017, these JVs sold over 10% of all passenger vehicles sold in China § DFM also owns 12% of PSA Peugeot group and has a very cash rich balance sheet § When we combine the stake in PSA Group, net cash at the corporate level and JV level combined, we get a value in excess of the market capitalisation of the company. This implies negative value for the stakes in joint ventures § Over the last decade, DFM has grown earnings at a 14%

• CAGR. The shares trade on below 4X PE with a dividend yield

in excess of 4%

Dongfeng Motor (DFM): Chinese auto manufacturer

Sources: Invesco, Bloomberg as at 12 October 2018.

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Earnings per share 2 4 6 5 10 15 20 25 07 08 09 10 11 12 13 14 15 16 17 18 PE ratio, x (LHS) Dividend Yield. % (RHS) P/E & Dividend Yield

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 05 06 07 08 09 10 11 12 13 14 15 16 17 18 Overall consumption Gross capital formation

Contribution to Chinese real GDP growth (3qma)

China – restructuring its economy

Source: Emerging Advisors Group as at 30 June 2018. 11

50 100 150 200 250 300 350 400 450 500 Jan 14 Jan 15 Jan 16 Jan 17 Jan 18 Autohome Alibaba BitAuto JD.com Baidu Tencent NetEase

Share price performance of Chinese internet-related companies, normalised to 100 on 1 Jan 2014

China – the new economy

Source: Bloomberg. Weekly data to 7 September 2018. Alibaba, JD.com and Autohome’s performance is normalised to 100 at IPO data (Sept14, May14 and Dec13 respectively). For illustrative purposes only. 12

The investment case for Emerging Markets as an asset class

§ Trade War – Political rather than economic narrows scope – Don’t overstate importance of impact, or continuity of long term trends – Look for beneficiaries § US monetary policy tightening – Emerging markets better positioned vs recent past with mostly stable macro § China Slowdown – Slower but better growth

Facing major Emerging Markets concerns

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After recent weakness, we believe: § There is limited optimism priced into the market § We can be comfortable with company earnings prospects § The risk/return balance for Emerging Markets looks attractive

5% 10% 15% 20% 25% 30% Jan 03 Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Jan 18 Private credit Total assets

EM credit growth

Global Emerging Markets credit growth – little sign of excess

Source: Emerging Advisers Group. EM credit growth (mid-weighted, % y/y 3mma) as at 30 June 2018. 15

• 10%
• 5%

0% 5% 10% 15% Mar 00 Sep 01 Mar 03 Sep 04 Mar 06 Sep 07 Mar 09 Sep 10 Mar 12 Sep 13 Mar 15 Sep 16 Mar 18 Asia CEE Latam ME/Afr

Current account balance by region

Global Emerging Markets current accounts – generally solid

Source: Emerging Advisers Group. Current balance (12m cum, % GDP) as at 30 June 2018. 16

0% 20% 40% 60% 80% 100% 120% 140% Dec 95 Dec 99 Dec 03 Dec 07 Dec 11 Dec 15 EM Europe US JP

Net Debt % Equity

Global Emerging Markets – corporate balance sheets in good health

Source: Worldscope, FactSet, Citi Research as at 16 October 2018. 17

Oper CF / (Capex+Div)

Global Emerging Markets – improving free cash flow generation

Source: Worldscope, FactSet, Citi Research as at 16 October 2018. 18

0.50 0.70 0.90 1.10 1.30 1.50 1.70 1.90 Dec 95 Dec 00 Dec 05 Dec 10 Dec 15 US EU JP EM Oper CF / (Capex+Div)

20 40 60 80 100 120 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

MSCI Emerging Markets relative to MSCI World

Global Emerging Markets – macro overview Relative performance of GEMS turning

Source: Datastream as at 1 August 2018. 1 January 1994 = 100. 19

• 30
• 20
• 10

10 20 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

MSCI Emerging Markets index – FY2 earnings revisions (3MMA, %)

Global Emerging Markets – macro overview Earnings revisions more supportive after years of decline

Source: Morgan Stanley as at end July 2018. Earnings Revision Breadth Definition: (Number of up revisions minus number of down revision)/total number of available analysts forecasts. FY2 refers to next year’s earnings, and rolls over each February. 20

60 70 80 90 100 110 120 130 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 Emerging Markets US

Trend in net income margins (rebased to 100)

60 70 80 90 100 110 120 130 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 Emerging Markets US

Trend in ROE (rebased to 100)

Margin evolution and return on equity Revisions well supported by fundamentals

Source: MSCI, IBES, Thomson Reuters Datastream, HSBC 12-month forward calculations as at 17 April 2018. LHC: 100 = 18/01/2004. RHC: 100 = 18/01/2004. 21

• 9
• 8
• 7
• 6
• 5
• 4
• 3
• 2
• 1

02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

P/E of MSCI Emerging Markets less P/E of S&P500

Global Emerging Markets – macro overview Emerging markets trading at biggest discount to US market in 16 years

Source: Bloomberg as at 17 July 2018. 22

0.5 1.0 1.5 2.0 2.5 3.0 3.5 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17

MSCI Emerging Markets price-to-book value ratio, x

Global Emerging Markets – macro overview Valuations still look reasonable in absolute terms

Source: Datastream as at 31 July 2018. 23

Invesco Global Emerging Markets Fund (UK)

Henley-based Asian & Emerging Market Equities Team

Source: Invesco. Team structure as of 30 September 2018. Years as at 30 September 2018; years refers to time in team and () refers to industry experience. Subject to rounding.1 Stuart Parks will be retiring in July 2019, 2 Dean Newman will be retiring in December 2018; both will continue to manage portfolios and engage with clients throughout transition period.. 25 Fund Managers & Analysts Product Management

Ian Hargreaves Fund Manager (Co-head) 24 years (24) William Lam Fund Manager (Co-head) 12 years (18) Tim Dickson Fund Manager 10 years (26) John Pellegry Product Director 16 years (23) Charles Bond Deputy FM 6 years (8) Fiona Yang Analyst 1 years (6) James McDermottroe Analyst 5 years (5) Nicholas Mason Fund Manager 12 years (19) Jonathan de Vos Senior Analyst 3 years (17) Douglas Turnbull Senior Analyst 1 year (11) Fund Manager Assistants

Dana Draper FM Assistant 19 years (19)

Stuart Parks1 Fund Manager 25 years (34) Dean Newman2 Fund Manager 25 years (33)

Karen Holroyd FM Assistant 2 years (2)

Photo unavailable

Retail (Luxembourg) Reference benchmark Index Fund Manager(s) AUM ($m) Invesco Asian Equity Fund MSCI AC Asia ex Japan Stuart Parks, William Lam, Ian Hargreaves $1,292 Invesco Asian Focus Equity Fund MSCI AC Asia ex Japan Ian Hargreaves $10.7 Invesco Pacific Equity Fund1 MSCI AC Pacific William Lam, Charles Bond, Tony Roberts $246 Invesco Emerging Markets Equity Fund MSCI Emerging Markets Dean Newman, William Lam, Ian Hargreaves $57 Invesco Latin American Equity Fund MSCI EM Latin America Nicholas Mason $5.1 Invesco Emerging Europe Equity Fund MSCI EM Eastern Europe Nicholas Mason $23 Retail (UK) Fund Manager(s) AUM (£m) Invesco Asian Fund (UK) MSCI AC Asia Pacific ex Japan William Lam £2,407 Invesco Asia Trust plc MSCI AC Asia ex Japan Ian Hargreaves £221 Invesco Asian Equity Income Fund (UK) MSCI AC Asia Pacific ex Japan Tim Dickson £42 Invesco Pacific Fund (UK)1 MSCI AC Pacific William Lam, Charles Bond, Tony Roberts £342 Invesco Global Emerging Markets Fund (UK) MSCI Emerging Markets Dean Newman, William Lam, Ian Hargreaves £362 Invesco Latin American Fund (UK) MSCI EM Latin America Nicholas Mason £140 Invesco Emerging European Fund (UK) MSCI EM Eastern Europe Nicholas Mason £43 Institutional Segregated accounts2 Fund Manager(s) AUM ($m) Asia ex Japan strategy (9 accounts) Stuart Parks, Ian Hargreaves, Tim Dickson, William Lam $7,772 Asia Pacific ex Japan strategy (4 accounts) Stuart Parks, Ian Hargreaves, Tim Dickson, William Lam $1,772

Henley-based Asian & Emerging Markets Equities Team Product range

Source: Invesco. AUM data as at 30 September 2018. 1Includes the Japanese portion of the strategy (42% of AuM). 2Institutional segregated accounts are co-managed by Stuart, Ian and Tim with the exception of two accounts which are mandated to be identical to the Invesco Asian Fund (UK) and the Invesco Asian Equity Fund, in which case the fund manager(s) for the account is (are) the one(s) managing the retail fund in question including William Lam. 3Includes multi-asset sleeves representing 9.4% of total AuM (73% in the Asia ex Japan strategy and 27% in the Asia Pacific ex Japan strategy). The strategy (eg “Asia ex Japan”) reflects the index against which the fund/mandate is benchmarked. $=USD. 26 Total team assets under management: $17.6bn3

Team objective: significantly outperform the market over 3-5 year rolling periods1 § Target stocks which trade at a significant discount to our estimate of fair value § Seek to reduce risk by holding a diversified portfolio Our principles of investing: § Valuation is paramount: a good company is not necessarily a good investment § 3–5 year investment horizon: we look to capitalise on the market’s short-termism § Fundamental approach: we develop a clear investment case and build conviction § Top-down macro input: economic outlook helps to guide country and sector weights

Overview of our investment approach

Source: Invesco. 1There is no guarantee this target will be achieved. 27

Value Time "Fair Value" share price Buy below estimated fair value

We look for stocks trading below our estimate of fair value

The investment lifecycle

For illustrative purposes only. 28 Sell at estimated fair value

§ Our company shortlist includes 50–70 holdings + approx. 30 candidates § These are ranked by our estimated total annual return for the next 3 years

Company shortlist

For illustrative purposes only. This table is an illustration and simplification of our proprietary stock comparison tool with earnings-per-share estimates and an earnings-based valuation ratio (P/E) as inputs. A more complete version of the stock comparison table, particularly for financial companies, would include return-on-equity estimates and asset-based valuation ratios such as the price-to-book ratio as inputs. *CAGR: cumulative annual growth rate. Dividends are included in the total CAGR estimate but not apparent in the above table. 29

Company Current P/E EPS 3-y CAGR* Fair P/E in 3 years Total return 3-y CAGR* Stock A 3.1x

• 3%

6x +24.9% Stock B 11.2x 14% 13x +22.7% Stock Y 19.6x 10% 16x +6.4% Stock Z 8.0x

• 3%

9x +4.7% Stock C 34.1x 31% 25x +18.1%

Weightings determined by risk and return:

§ Bottom-up ex-ante: – Level of conviction in thesis – Maximal potential upside for minimal intrinsic risk – Contribution to portfolio risk – Liquidity considerations § Top-down ex-post: – Asset allocation ‘sense check’ – Risk budget in context of market outlook

Process:

Source: Invesco as at 31 March 2018. For illustrative purposes only.

10 20 30 40 50 >2% 1-2% <1% Stocks % of Invesco Global Emerging Markets Fund (UK)

30

Portfolio position sizing distribution

§ Dynamic portfolio optimisation with ongoing team discussion and challenge § Lead managers the ultimate decision makers Aim is for a well-diversified portfolio of active positions without inherent style bias

Naspers Novatek Alibaba FEMSA Banco do Brasil Methanex HDFC China Mobile Credicorp Vale NMC Health Bitauto

Out-performance

• ver the long-

term With better risk adjusted returns

• vs. reference

benchmark on traditional metrics Has led to high information ratio And strong downside defence helping lower risk to capital Achieved by strong active stock selection Without relying

• n any strong

style bias And always ensuring sufficient liquidity

Invesco Global Emerging Markets Fund (UK) Past performance profile

Source: Invesco as at 31 December 2017, since fund inception on 30 September 2003. Past performance is not a guide to future returns. 31

In line with our philosophy, the result of this has been:

16.0 16.5 17.0 17.5 18.0 18.5 19.0 13.0 13.5 14.0 14.5 15.0

Annualised return Annualised risk

MSCI EM index IA Global Emerging Markets Higher risk Higher relative return Higher risk Lower relative return Lower risk Higher relative return Lower risk Lower relative return

Return and standard deviation, net of fees in GBP (%) Monthly calculations: 3 years to 30 September 2018

Invesco Global Emerging Markets Fund (UK) Better risk-adjusted returns than the market and peers

Past performance is not a guide to future performance. Source: Lipper and Invesco as at 30 September 2018. The risk return profile is shown for the Invesco Global Emerging Markets Fund (UK) (Z Acc share class) in sterling, inclusive of reinvested income and net of the Ongoing Charge and portfolio transaction costs. Index and peer figures are total return, in sterling. 32

Invesco Global Emerging Markets Fund (UK)

60 65 70 75 80 85 90 95 100 105 110 1 2 3 4 5 6 7 8 9 10 Number of years

Up capture (%)

60 65 70 75 80 85 90 95 100 105 110 1 2 3 4 5 6 7 8 9 10 Number of years

Down capture (%)

Invesco Global Emerging Markets Fund (UK) Up/downside capture has led to attractive relative profile

Past performance is not a guide to future returns. Source: Invesco as at 31 December 2017. An upside capture ratio over 100 indicates a portfolio has generally outperformed the reference benchmark during periods of positive returns for the benchmark. Meanwhile, a downside capture ratio of less than 100 indicates that a fund has lost less than its reference benchmark in periods when the benchmark has fallen. Relative to the MSCI Emerging Markets Index. 33 Since 01/04/07 Since 01/04/07

• 4
• 2

2 4 6 8 10 12 14

Consumer Disc. Consumer Staples Energy Financials Health Care Cash Industrials IT Materials Real Estate Telecoms Utilities

% Outperformance Stock selection effect Market allocation effect

Invesco Global Emerging Markets Fund (UK) Stock selection driving outperformance, 2013–2017

Past performance is not a guide to future returns. Source: Invesco (CAPeR)- Russell - Top-Down with independent groups. Stock Selection effect includes “Interaction Effect”. Time period 1 January 2013 to 31 December 2017. Index: MSCI Emerging Markets. Performance numbers, portfolio returns and attributions are shown in GBP and are gross of management fees and expenses. The attribution figures are estimates and should be used for indicative purposes only. Data cleansing and retrospective information availability may cause changes. *The “Interaction Effect”, which is the relative return that is not solely attributed to either asset allocation or stock selection has been included in the “Stock Selection Effect”. 1Source: Lipper as at 30 September 2018. Performance figures are based on the Z (Acc) share class. Performance figures for all share classes can be found in the relevant Key Investor Information Document. Performance figures are shown in sterling, inclusive of reinvested income and net of the Ongoing Charge and portfolio transaction costs. Reference benchmark and other index information source: Datastream, total return, in sterling. Index: Total Return, in GBP.

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Outperformance 32.08% Fund performance 83.61% Reference benchmark performance 51.53%

12-month net rolling returns1 30/09/13 to 30/09/14 30/09/14 to 30/09/15 30/09/15 to 30/09/16 30/09/16 to 30/09/17 30/09/17 to 30/09/18 Global Emerging Markets Fund (UK) 7.75

• 11.08

40.49 18.34

• 0.01

MSCI Emerging Markets 4.19

• 13.61

36.18 18.57 2.05

Invesco Global Emerging Markets Fund (UK) Stylistic tilts – current and vs. 5yr historic range

Source: Style Research as at 31 December 2017. 35

• 2
• 1

1 2 3 4

Book to Price Earnings Yield Free Cash Flow Yield Return on Equity Earnings Growth Forecast FY1 Revisions Forecast Sales Gr Long Term Returns Stability Market Cap Momentum ST Debt to Equity Exposure to Inflation Exposure to Oil Return

Standard Deviations from market mean

Value Growth Other Specific

§ Style agnosticism short term leads broadly to style neutrality long-term § Good investments usually have elements of multiple styles, both growth and value over time – Hence “GARP”-type exposures implied

Country Fund Index Active

Russia 6.92 3.70 3.22 South Africa 8.93 6.09 2.85 Greece 2.57 0.29 2.28 Mexico 4.57 3.16 1.41 United Arab Emirates 2.02 0.66 1.36 Kazakhstan 1.30 0.00 1.30 Argentina 1.29 0.00 1.29 Colombia 1.65 0.47 1.19 South Korea 15.95 14.88 1.07 Chile 1.78 1.10 0.68 Peru 1.08 0.41 0.67 Poland 1.89 1.22 0.67 Cash 0.62 0.00 0.62 Turkey 1.01 0.61 0.40 Pakistan 0.00 0.06

• 0.06

Egypt 0.00 0.13

• 0.13

Czech Republic 0.00 0.19

• 0.19

Brazil 5.91 6.19

• 0.28

Hungary 0.00 0.29

• 0.29

Philippines 0.65 0.96

• 0.31

India 7.92 8.53

• 0.61

Indonesia 1.25 1.95

• 0.70

Qatar 0.00 0.94

• 0.94

Thailand 1.54 2.48

• 0.94

Taiwan 10.64 12.29

• 1.65

Malaysia 0.00 2.43

• 2.43

HK & China 20.51 30.99

• 10.48

Invesco Global Emerging Markets Fund (UK) Country over/underweights1 (%)

Source: Invesco as at 30 September 2018. 1Relative to MSCI Emerging Markets index. Numbers are subject to rounding and relate to country of exposure.

• 12
• 8
• 4

4

HK & China Taiwan Qatar India Hungary Czech Republic Pakistan Cash Peru South Korea Argentina United Arab Emirates Greece Russia 36

Active country weights

Region Fund MSCI Emerging Markets Asia 58.5 73.9 EMEA 24.6 14.7 Latin America 16.3 11.3 Cash 0.6 0.0

• 3
• 2
• 1

1 2 3 4 5 Telecoms Diversified Financials Real Estate Pharma, Biotech & Life Sciences Utilities Insurance Tech Hardware & Equipment Automobiles & Components Software & Services Banks

§ Banks mostly in Asia, and valuations compelling especially in rate normalising environments § Exposure to internet stocks, especially in China, driving S&S top overweight § Hardware linked to that, mostly in Asia, and offering attractive valuations ex-cash § Telecoms the flip-side of this, as they have to fund network expansion etc. § Energy may be underweight, but our factor exposure is positive

Invesco Global Emerging Markets Fund (UK) Sub-sector breakdown and net active positions1, %

Source: Invesco as at 30 September 2018. 1Relative to MSCI Emerging Markets index, top and bottom 5 actives only. 37

§ A robust, repeatable, and proven process – Undertaken consistently by an experienced and flexible team, in the supportive Henley environment – Investing with a long time horizon, and a commitment to active management § A thorough understanding of our companies, and a strong valuation discipline, build conviction at the heart of the process – Combined with a robust risk monitoring process § A strong risk-adjusted track record demonstrated both in rising and falling markets – And GEM valuations and fundamentals currently supportive for the asset class

What the Invesco Global Emerging Markets Fund (UK) offers

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Invesco Global Emerging Markets Fund (UK): A core proposition for long-term client portfolios

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. The fund invests in emerging and developing markets, where there is potential for a decrease in market liquidity, which may mean that it is not easy to buy or sell securities. There may also be difficulties in dealing and settlement, and custody problems could arise. The fund may use derivatives (complex instruments) in an attempt to reduce the overall risk of its investments, reduce the costs of investing and/or generate additional capital or income, although this may not be achieved. The use of such complex instruments may result in greater fluctuations of the value of the fund. The Manager, however, will ensure that the use

• f derivatives within the fund does not materially alter the overall

risk profile of the fund.

Investment risks

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This presentation is for Professional Clients only and is not for consumer use. All data is as at 30.09.2018 and sourced from Invesco unless

• therwise stated.

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. 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. For the most up to date information on our funds, please refer to the relevant fund and share class-specific Key Investor Information Documents, the Supplementary Information Document, the Annual or Interim Reports and the Prospectus, which are available using the contact details shown. For details of fund specific risks, please refer to the relevant Key Investor Information Documents. Issued by Invesco Fund Managers Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH,

• UK. Authorised and regulated by the Financial Conduct Authority.

Important information

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