Invesco Emerging Market Corporate Bond Fund A

Invesco Emerging Market Corporate Bond Fund A

Invesco Emerging Market Corporate Bond
Fund
A (EUR Hgd)-Acc Shares
31 May 2017
Summary of fund objective
Quarterly fund commentary
The objective of the Fund is to achieve a
high income yield and long-term capital
appreciation by investing primarily in debt
securities of emerging market corporate
issuers. For the full objectives and
investment policy please consult the
current prospectus.
Emerging markets (EM) corporate bonds returned 2.97% (USD total return) for the quarter,
as measured by the J.P. Morgan CEMBI Broad Diversified Index. EM corporate spreads
tightened 31 basis points (bps) to end the quarter at 261 bps. Returns were positive across
all regions lead by Latin America and Africa. Returns were also positive across sectors lead
by Metals & Mining and Industrials. Performance was driven by our overweight exposure to
Latin America - especially Brazil and Mexico. As Brazil continues to recover from a deep
recession we expect corporate and quasi-sovereign bonds there to offer good value. With
Mexico we think the initial weakness following the US presidential election was overdone and
we expect corporate debt (credit) to continue to recover. In addition, during the quarter we
increased off index exposure to sovereign and quasi-sovereign credit as we saw better
relative value in that segment of market. On the underweight side, we continue to be
underexposed to Asian credit as the region is broadly trading at historical tights. Looking
forward, we are adopting a cautious stance as spreads are broadly at pre financial crisis
tights leaving little cushion against negative developments. We expect to focus on more
liquid credits as well as potentially increasing duration (a measure of sensitivity to interest
rate changes).
Key facts
Michael Hyman
Atlanta
Managed fund since
October 2016
Rashique Rahman
Atlanta
Managed fund since
August 2015
Share class launch
04 May 2011
Original fund launch
04 May 2011
Legal status
Luxembourg SICAV with UCITS status
Share class currency
EUR
Share class type
Accumulation
Fund size
USD 161.91 mn
Reference index
JPM CEMBI Broad Diversified Index
Bloomberg code
IEMCAEH LX
ISIN code
LU0607516928
Settlement date
Trade Date + 3 Days
Morningstar RatingTM
AAA
Indexed performance*
Fund
Index
140
130
120
110
100
90
05/12
05/13
05/14
05/15
05/16
05/17
Data points are as at month end.
Cumulative performance*
in %
YTD
1 year
3 years
5 years
Fund
4.20
Index
4.79
7.18
8.03
26.35
8.50
15.62
33.17
Calendar year performance*
in %
2012
2013
2014
2015
2016
Fund
20.08
-3.85
4.93
-0.74
6.39
Index
15.01
-0.60
4.96
1.30
9.65
Standardised rolling 12 month performance**
in %
Fund
31.03.12
31.03.13
31.03.13
31.03.14
31.03.14
31.03.15
31.03.15
31.03.16
31.03.16
31.03.17
13.16
-1.88
4.00
-0.66
7.05
The standardised past performance information is updated on a quarterly basis.
Past performance is not a guide to future returns.
*Source: © 2017 Morningstar. Gross income re-invested to 31 May 2017 unless otherwise stated. The figures do not reflect the entry charge payable by individual
investors. **Gross income re-invested to 31 March 2017. All performance data on this factsheet is in the currency of the share class, apart from the index
performance which is shown in USD. Reference Index Source: Bloomberg. Please refer to Page 3 for Risk Warnings and Important Information.
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Invesco Emerging Market Corporate Bond Fund
A (EUR Hgd)-Acc Shares
31 May 2017
Geographical weightings of the fund in %*
Geographical weightings*
Brazil
g Russia
g Mexico
g Turkey
g Kazakhstan
g China
g Argentina
g Colombia
g Others
g Cash
g
in %
Sector weightings of the fund in %*
Fund
Index
Fund
Index
Brazil
11.7
5.8
Corporates
83.9
100.0
Russia
10.9
4.8
Sovereign
9.4
0.0
Mexico
8.7
4.5
Quasi-Sovereign
3.7
0.0
Turkey
7.1
4.2
Cash
3.0
0.0
Kazakhstan
6.1
0.8
China
4.2
5.8
Argentina
3.7
2.7
Colombia
3.5
3.8
41.1
67.8
3.0
0.0
Others
Cash
Corporates
Sovereign
g Quasi-Sovereign
g Cash
g
Maturity distribution*
g
in %
Yield %*
5.73
Gross Redemption Yield
5.68
Current NAV
EUR 13.37
12 month price high
EUR 13.37 (31/05/2017)
12 month price low
EUR 12.48 (01/06/2016)
Minimum investment 1
EUR 1,000
Entry charge
Up to 5.00%
Annual management fee
1.5%
Ongoing charges
1.80% (31/08/2016)
in %
Duration distribution*
Fund
Index
(average duration: 5.5)
0-3 years
8.4
19.1
in %
3-7 years
44.7
47.9
Under 3 years
7-10 years
26.7
18.5
3-4 years
10-15 years
4.5
2.1
14.9
0.8
15+ years
Gross Current Yield
NAV and fees
Sector weightings*
Others
Fund
Index
17.0
32.3
7.2
15.0
4-5 years
25.1
18.6
12.3
5-6 years
13.0
11.9
0.0
6+ years
37.8
22.3
Credit ratings*
(average rating: BB)
in %
Fund
Index
AAA
0.0
0.2
AA
1.4
4.5
A
6.0
21.0
BBB
38.2
39.7
BB
26.1
18.5
B
22.8
10.7
CCC and Below
2.3
0.8
Not Rated
0.3
4.7
Cash
3.0
0.0
Source: *Invesco. Portfolio weightings and allocations are subject to change.
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Invesco Emerging Market Corporate Bond Fund
A (EUR Hgd)-Acc Shares
31 May 2017
Risk Warnings
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. As a large portion of the fund is
invested in less developed countries, you should be prepared to accept significantly large fluctuations of the value of the fund.
Important Information
1
The minimum investment amounts are: USD 1,500 / EUR 1,000 / GBP 1,000 / CHF 1,500 / SEK 10,000. Please contact us or
refer to the most up to date Prospectus for details of minimum investment amounts in other currencies.
Where Invesco has expressed views and opinions, these may change. If investors are unsure if this product is suitable for them, they
should seek advice from a financial adviser. The distribution and the offering of the fund or its share classes 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. 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. Compensation under the UK’s Financial Services Compensation Scheme will not be
available and UK cancellation rights do not apply. The fund is available only in jurisdictions where its promotion and sale is permitted. 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. The ongoing charges figure is based on annualised expenses for the period ending
31/08/2016. This figure may vary from year to year. It excludes portfolio transaction costs except in the case of an entry or exit charge
paid by the Fund when buying or selling shares/units in another fund. Please refer to the most up to date relevant fund and share classspecific Key Investor Information Document, the latest Prospectus and Annual or Interim Short Reports for more information on our funds.
UK based investors should also refer to the relevant Supplementary Information Document. This information is available using the contact
details shown. The yields shown are expressed as a % per annum of the current NAV of the fund. They are an estimate for the next 12
months, assuming that the fund’s portfolio remains unchanged and there are no defaults or deferrals of coupon payments or capital
repayments. Cash income is estimated coupons from bonds. The gross current yield is an indication of the expected cash income over the
next 12 months. The estimated gross redemption yield is a longer-term picture indicating expected annual total return. This means that in
addition to expected cash income, it includes the amortised annual value of unrealised capital gains or losses of bond holdings currently
held by the fund, calculated with reference to their current market price and expected redemption value made upon maturity of the bonds.
Neither of the yields is guaranteed. Nor do they reflect the fund charges or the entry charge of the fund. Investors may be subject to tax
on distributions. Issued in Jersey by Invesco International Limited, 2nd Floor, Orviss House, 17a Queen Street, St Helier, Jersey, JE2
4WD. Regulated by the Jersey Financial Services Commission. Issued in the UK 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.
Issued in Dubai for Professional Clients only 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.
© 2017 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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