Invesco Bond Fund 30 June 2014

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Invesco Bond Fund

30 June 2014

-1-Invesco Asset Management Asia Ltd 景順投資管理亞洲有限公司 41/F Citibank Tower, 3 Garden Road, Central, Hong Kong Invesco Funds Hotline: (852) 3191 8282 Invesco Distributors Hotline: (852) 3191 8000

Important Information

- The Fund is an investment fund investing in fixed interest and floating rate securities, including (a) bonds and debentures issued by governments, local authorities and public authorities; (b) corporate bonds and debentures whether secured or unsecured (including securities convertible into or exchangeable for equity shares) held for long term investment purposes; and (c) securities issued by public international bodies.

- Investors should note the credit risk, interest rate risk, risk with international investing, concentration risk of investing in fixed interest and floating rate securities and investment risk associated with the investment.

- If investors invest in share class denominated/dealt in a different currency than the base currency, due to fluctuations in currency markets, returns to investors, when converted back into the currency in which the investor subscribes and redeems, may be different to the return calculated by reference to the base currency.

- Financial derivative instruments may be used for efficient portfolio management purposes or to attempt to hedge or reduce the overall risk of its investments. Should the Investment Adviser’s expectations in employing techniques and financial derivative instruments for efficient portfolio management and hedging purposes be incorrect or ineffective, the Fund may suffer a substantial loss having an adverse effect on the net asset value of the shares. Since financial derivative instruments may be geared instruments, their use may result in greater fluctuations of the net asset value of the Fund.

- The value of the product can be volatile and could go down substantially within a short period of time.

- The investment decision is yours but you should not invest unless the intermediary who sells this product to you has advised you that this product is suitable for you and has explained why, including how investing in it would be consistent with your investment objectives.

- Investors should not only base on this marketing material alone to make investment decisions.

Summary of fund objective

The objective of the Fund is to achieve long-term returns through investment in fixed interest and floating rate securities while maintaining a high income yield. For the full objectives and investment policy please consult the current prospectus.

Key facts

Mark Nash London

Managed fund since June 2010

Share class launch

A (USD)-MD Shares 30/7/04

Legal status

Mutual Fund - Irish Unit Trust authorised as UCITS

Share class base currency USD

Current NAV

A (USD)-SD Shares USD 29.04

A (USD)-MD Shares USD 28.99

12 month price high

A (USD)-MD Shares USD 28.99 (30/06/14) A (USD)-SD Shares USD 29.23 (08/05/14)

12 month price low

A (USD)-MD Shares USD 26.71 (08/07/13) A (USD)-SD Shares USD 26.78 (08/07/13)

Fund size USD 393.22 mn Minimum investment USD 1,500 Initial Charge 5.00%

Annual management fee

0.75%

Settlement date

Any business day

Reference index

JP Morgan GBI Global (Traded)

Morningstar Rating™

AAA

Quarterly fund commentary

Global bond market returns ended the quarter mixed, as regional data drove core government (such as Gilts, Bunds and Treasuries) yields in different directions. Gilt and Treasury yields were pushed higher amidst rising anticipation of future interest rate hikes on signs of improving economies while Bund yields fell at the end of the quarter in response to weaker Eurozone economic data and further monetary policy easing by the European Central Bank. More forward-looking data reflects a picture of very modest growth in the Eurozone. In Japan, investors were encouraged by data that appears to show the impact of April’s consumption tax hike has not been as severe as previously feared. Allocations to sovereign debt from selected peripheral Eurozone countries were beneficial for overall fund performance as yield spreads continued to tighten with core government bonds. The fund benefited from its positioning in Portugal, Slovenia and Spain. Furthermore, improving fundamentals were supportive for the fund’s holdings in investment grade and high yield corporate bonds. Going into the third quarter, the fund is positioned for higher yields in US and Japanese bonds. Country preferences include New Zealand and Mexico which we expect to outperform other developed market bonds.

Invesco Bond Fund (A (USD)-MD Shares) Index

Indexed performance* 06/09 06/10 06/11 06/12 06/13 06/14 90 100 110 120 130 Cumulative performance*

in % YTD 1 year 3 years 5 years

A (USD)-SD Shares 6.38 9.04 7.23 22.54

A (USD)-MD Shares 6.37 9.00 7.25 22.54

Index 5.05 6.50 4.88 20.51

Calendar year performance*

in % 2013 2012 2011 2010 2009

A (USD)-SD Shares -4.28 3.09 6.68 3.85 2.37

A (USD)-MD Shares -4.26 3.10 6.66 3.83 2.36

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Invesco Bond Fund

30 June 2014

Top 10 holdings (total holdings: 92)

Holding Market %

Japan Government Ten Year Bond 1.900 Jun 20 17 Japan 11.0

Portugal Obrigcoes Do Tesourp 4.750 Jun 14 19 Portugal 5.6

New Zealand Government Bond 6.000 May 15 21 New Zealand 4.6

Japan Government Twenty Year Bond 2.000 Jun 20 25 Japan 4.4

Italy Buoni Poliennali Del Telsoro 4.500 Mar 01 24 Italy 4.3

Spain Government Bond 4.400 Oct 31 23 Spain 4.2

Italy Buoni Poliennali Del Tesoro 2.100 Sep 15 16 Italy 3.9

Mexican Bonos 10.00 Dec 05 24 Mexico 3.6

Italy Buoni Poliennali Del Tesoro 2.500 May 01 19 Italy 3.3

Cyprus Government International Bond 4.750 Jun 25 19 Cyprus 3.1

References

IVRS code

A (USD)-SD Shares 701

A (USD)-MD Shares 721

Bloomberg code

A (USD)-SD Shares INVBDDA ID

A (USD)-MD Shares INVBDAM ID

ISIN code

A (USD)-SD Shares IE0003702192 A (USD)-MD Shares IE00B01VPY04

Published NAV

South China Morning Post Hong Kong Economic Times Hong Kong Economic Journal

Yield

in %

Gross Current Yield 3.71

Gross Redemption Yield 2.72

Credit ratings average rating: BBB+ in % AAA 6.8 AA 16.5 A 27.5 BBB 31.9 BB 15.3 B 5.8 CCC and Below 2.4 Cash and FX -6.2 Sector weightings in % Sovereign 77.1 Corporate 22.6

Quasi and Foreign Government 5.3

Securitised 0.8 Other 0.4 Cash and FX -6.2 Currency exposure % Dollar Bloc 47.7 Europe 25.4 Japan 21.8 UK 5.2

Weighted average duration

in years Europe 2.2 Dollar Bloc 1.8 Japan 1.4 UK 0.6 3 year characteristics* A (USD)-MD Shares Volatility 5.05

Peer Group Volatility 5.02

Dividend Date: A-SD Share (21 June, 21 December); A-MD Share (21st of every month).

The current yield of a bond fund is the average current yield of underlying bonds in gross in the portfolio. Current yield of an individual bond refers to the annual interest divided by the market price of a bond. The figure is not the dividend yield received by the investors and is subject to change from time to time. Duration in Years refers to the weighted average maturity of the cash flows in the underlying bonds, where the present values of the cash flow serve the weights. The greater the duration, the greater its percentage price sensitivity to changes in interest rates. Volatility is measured by the standard deviation of the fund, based on its annual rates of return over the past 3 years in base currency of the fund. Peer Group Volatility refers to the volatility of the offshore and international funds which are categorized under USD Diversified Bond Sector by Morningstar.

Important Information

Investment involves risks. Past performance is not indicative of future performance. Investors should read the relevant prospectus for details, including the risk factors and product features. This material has not been reviewed by the Securities and Futures Commission and is issued by Invesco Asset Management Asia Limited. All fund performance data are sourced from ©2014 Morningstar. Other information are sourced from Invesco. Where securities are mentioned in this document they do not necessarily represent a specific portfolio holding and do not constitute a recommendation to purchase or sell. A decision to invest in shares of a fund must be based on the most up to date legal offering documents. The distribution and the offering of funds 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 funds 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. The fund is not offered for sale in any jurisdiction in which the fund is not authorised to be publicly sold. The fund is available only in jurisdictions where its promotion and sale is permitted. ©2014 Morningstar, Inc. 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. Asset allocation data is derived by Morningstar using full holdings data provided by Invesco. Morningstar Licensed Tools and Content powered by Interactive Data Managed Solutions.

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1 FOR THE ATTENTION OF HONG KONG INVESTORS

This statement provides you with key information about this product.

This statement is a part of the consolidated prospectus for Invesco Funds Series 1-5

dated 28 July 2014 (the “Prospectus”) and should be read in conjunction

with the Prospectus.

You should not invest in this product based on this statement alone.

Quick Facts

Fund Manager: Invesco Global Asset Management Ltd Investment Adviser: Invesco Asset Management Ltd, located in the UK. (Internal delegation) Base Currency: US Dollar Dealing Frequency: Daily Trustee: BNY Mellon Trust Company (Ireland) Ltd Financial Year End: 30 November Dividend/ Distribution Policy: Monthly Distribution (Dividends, if any, will be paid to the

investors): A-MD Semi-annual Distribution (Dividends, if any, will be paid to the investors): A, B & C Accumulation (Dividends, if any, will be re-invested into the Fund): A(EUR Hgd), C(Accum-STG),

C(Accum-USD) & C(EUR Hgd) Minimum Investment/ Minimum Subscription Amount:

Share class A A(EUR Hgd) A-MD

Initial (in any of the dealing currencies listed in the Application Form) USD1,500 EUR1,000 GBP1,000 HKD10,000 JPY120,000 AUD1,500 CAD1,500 NZD2,000 USD1,500 EUR1,000 GBP1,000 HKD10,000 JPY120,000 AUD1,500 CAD1,500 NZD2,000 USD1,500 EUR1,000 GBP1,000 HKD10,000 JPY120,000 AUD1,500 CAD1,500 NZD2,000 Additional - - -

Share class B C C(Accum-STG)

Initial (in any of the dealing currencies listed in the Application Form) USD1,500 EUR1,000 GBP1,000 HKD10,000 JPY120,000 AUD1,500 CAD1,500 NZD2,000 USD250,000 EUR200,000 GBP150,000 HKD2,000,000 JPY20,000,000 AUD250,000 CAD250,000 NZD300,000 USD250,000 EUR200,000 GBP150,000 HKD2,000,000 JPY20,000,000 AUD250,000 CAD250,000 NZD300,000 Additional - - -

PRODUCT KEY FACTS

Invesco Bond Fund

A sub-fund of Invesco Funds Series 2

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Invesco Bond Fund

Share class C(Accum-USD) C(EUR Hgd) Initial (in any of the

dealing currencies listed in the Application Form) USD250,000 EUR200,000 GBP150,000 HKD2,000,000 JPY20,000,000 AUD250,000 CAD250,000 NZD300,000 USD250,000 EUR200,000 GBP150,000 HKD2,000,000 JPY20,000,000 AUD250,000 CAD250,000 NZD300,000 Additional - -

What is this product?

Invesco Bond Fund (the “Fund”) is a sub-fund of Invesco Funds Series 2, constituted in the form of a unit trust. It is domiciled in Ireland and its home regulator is the Central Bank of Ireland.

Objectives and Investment Strategy

The objective of the Fund is to achieve long-term returns through investment in fixed interest and floating rate securities while maintaining a high income yield. The Manager will seek to achieve the investment objective by investing at least 70% of the Fund’s total assets (without taking into account ancillary liquid assets) worldwide in a geographically diversified portfolio of fixed interest and floating rate securities providing a spread among various major currencies and maturities and comprising any or all of the following types of security:

(a) bonds and debentures issued by governments, local authorities and public authorities;

(b) corporate bonds and debentures whether secured or unsecured (including securities convertible into or exchangeable for equity shares) held for long term investment purposes; and

(c) securities issued by public international bodies.

The portfolio will normally be invested primarily in securities issued or guaranteed by a government including local authorities or public authorities of any state which is a member of the European Union or United States of America, Canada, Japan, Australia, New Zealand, Norway, Switzerland, Hong Kong and Singapore.

The Manager’s approach to fixed interest and floating rate investment entails the close monitoring of economies, interest and currency exchange rates so as to identify securities which are likely to benefit from falling interest rates, markets which offer attractive yields and prospects and

movements in currency exchange rates.

The Fund will not invest more than one third of its total assets in aggregate in money market instruments, bank deposits or convertible bonds and bonds with warrants attached. Investments in convertible bonds and bonds with warrants attached may in aggregate not exceed 25% of the Fund’s total assets. The Fund will not invest in equity securities.

The Fund may use derivatives (including but not limited to futures, forwards, non-deliverable forwards, swaps and complex options structures) extensively for hedging and efficient portfolio management purposes. Such derivatives may also incorporate derivatives on derivatives (i.e.

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Invesco Bond Fund

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What are the key risks?

Investment involves risks. Please refer to the Prospectus for details including the risks factors.

 Credit risk

- Investment in bonds or other fixed income securities are subject to the risk that issuers not make payments on interest and principal of such securities. An issuer suffering from an

adverse change in its financial condition could lower the quality of a security leading to greater price volatility on that security.

- A security having a low credit rating may also offset such security’s liquidity, making it more difficult to sell. As the Fund may invest in non-investment grade bonds, it is more susceptible to these problems and the value of such securities may be more volatile. This may, in turn, have an adverse effect on the net asset value of the Fund.

- In the event of a bankruptcy or other default of the issuer, the Fund may experience both delays in liquidating the underlying securities and loses including a possible decline in value of the underlying securities during the period when the Fund seeks to enforce its rights thereto. - Securities which were investment grade at the time of acquisition may be downgraded. The

risk of any such downgrading will vary over time. The Fund’s investment policy does not specifically require the Fund to sell such securities if they should fall below investment grade. Investments in below investment grade securities carry a higher risk of default and therefore may adversely impact the Fund and/or the interests of investors.

 Interest rate risk - The bonds or fixed income securities that the Fund invests in may fall in value if the interest rates change and this will adversely impact the net asset value of the Fund. Longer term debt securities are usually more sensitive to interest rate changes.

 Risk with international investing - Since the Fund invests on an international basis, the value of the assets of the Fund may be affected by uncertainties of the underlying countries such as political, economic or other developments in the law or regulations of the countries in which the Fund may invest. Besides, as the Fund invests in securities denominated in different currencies other than the base currency of the Fund; changes in foreign currency exchange rates will affect the value of Shares held in the Fund.As such, this may adversely impact the Fund and/or the interests of investors.

 Concentration risk - As the Fund will invest in fixed interest and floating rate securities, such concentration in a particular sector may lead to higher volatility than more diversified funds.

 Investment risk - There can be no assurance that the Fund will achieve its investment objective. There is no guarantee of the repayment of principal. The instruments invested by the Fund may fall in value.

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Invesco Bond Fund

 Risk relating to those Share Classes denominated/dealt in a different currency than the

base currency -

For those classes of Shares denominated/dealt in a different currency than the base currency, due to fluctuations in currency markets, returns to investors, when converted back into the currency in which the investor subscribes and redeems, may be different to the return calculated by reference to the base currency. This means the returns may go down and adversely impact the investors.

Therefore, the value of those investments (when converted to the base currency of that Fund) may fluctuate due to changes in exchange rates. The price of shares/units and the income from them can go down as well as up and investors may not realise their initial investment.

For the Hedged Share Classes, there is no guarantee that the exposure of the currency in which the Shares are denominated can be fully hedged at all times against the base currency of the Fund. Investors should also note that the successful implementation of the strategy may

substantially reduce the benefit to Shareholders in the relevant class of Shares, or decrease the value of the Share class currency against the base currency of the Fund. In the event that investors request payment of redemption proceeds in a currency other than the currency in which the Shares are denominated, the exposure of that currency to the currency in which the Shares are denominated will not be hedged.

 Risk of investing in financial derivative instruments - Investments of the Fund may be composed of financial derivative instruments used for efficient portfolio management or to attempt to hedge or reduce the overall risk of its investments. Should the Investment Adviser’s expectations in employing techniques and financial derivative instruments for efficient portfolio management and hedging purposes be incorrect or ineffective, the Fund may suffer a substantial loss having an adverse effect on the net asset value of the shares. Since financial derivative instruments may be geared instruments, their use may result in greater fluctuations of the net asset value of the Fund.

Is there any guarantee?

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Invesco Bond Fund

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What are the fees and charges?

Charges which may be payable by you

You may have to pay the following fees when dealing in the shares of the Fund.

Fee What you pay

Subscription fee/ Initial charge Class A, A(EUR Hgd), A-MD, C, C(Accum-STG), C(Accum-USD) & C(EUR Hgd): Not exceeding 5.00% of the gross investment amount

Class B: NIL

Switching fee Up to 1.00% of the value of the shares being switched. Redemption fee N/A

Contingent Deferred Sales Charge (“CDSC”)

(Class B only)

Redemption Applicable rate (during X years since purchase) of CDSC

1st Year 4%

2nd Year 3%

3rd Year 2%

4th Year 1%

After end of 4th Year None

The CDSC will be calculated by reference to the lesser of (i) the current market value (based on the net asset value per share ruling on the date of redemption); or (ii) the acquisition cost of the Class B shares being redeemed.

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Invesco Bond Fund

Ongoing fees payable by the Fund

The following expenses will be paid out of the Fund. They affect you because they reduce the return you get on your investments.

Annual rate (as a % of the Fund’s value) Management fee* Class A, A(EUR Hgd), A-MD & B: 0.75%

Class C, C(Accum-STG), C(Accum-USD) & C(EUR Hgd): 0.50%

C

Trustee fee/ Trustee charge Up to 0.0075% U

Performance fee N/A N

Service Agent fee Class A, A(EUR Hgd) & A-MD: Up to 0.13%

Class B, C, C(Accum-STG), C(Accum-USD) & C(EUR Hgd): Up to 0.10%

C

Distribution fee Class A, A(EUR Hgd), A-MD, C, C(Accum-STG), C(Accum-USD) & C(EUR Hgd): NIL

Class B: Up to 1.00%

C

C * The management charge may be increased, up to a maximum of 2.5% of the net asset value of the Fund, plus VAT (if

any), upon at least 1 month’s written notice to Shareholders, or longer if required. The maximum annual management charge of 2.5% may not be increased and take effect without the (a) prior approval of the relevant regulatory

authority (b) prior approval by ordinary resolution of the Shareholders of the Fund (c) upon at least 1 month’s (or longer if required) written notice to Shareholders after the passing of the ordinary resolution of the Shareholders of the fund.

Other fees

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Invesco Bond Fund

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Additional Information

 You generally buy and redeem shares at the Fund’s next-determined NAV after the Hong Kong Sub-Distributor and Representative, Invesco Asset Management Asia Limited, receives your request in good order on or before 5:00 pm, Hong Kong time, being the Fund’s dealing cut-off time. Before placing your subscription or redemption orders, please check with your distributor for the distributor’s internal cut-off time (which may be earlier than the fund’s dealing cut-off time).

 The NAV of this Fund is calculated each “Business Day” as defined in the Prospectus and the price of shares published each Hong Kong business day (i.e. a day on which banks in Hong Kong are open for normal banking business) at www.invesco.com.hk. This website has not been reviewed by the Securities and Futures Commission (SFC). The prices are also available in the South China Morning Post, the Hong Kong Economic Times and the Hong Kong Economic Journal.

 Investors may obtain other information of this product at www.invesco.com.hk. This website has not been reviewed by the Securities and Futures Commission (SFC).

Important

If you are in doubt, you should seek professional advice.

The SFC takes no responsibility for the contents of this statement and makes no representation as to its accuracy or completeness.