Invesco Global Equity Income Fund

Invesco Global Equity Income Fund

May 2015

Continental Europe and Professional Clients in the UK and for Qualified Investors in Switzerland and is not for consumer use. Please do not redistribute.

Contents

Invesco Global Equity Income Fund

Investment team and philosophy

Investment process

Portfolio positioning

Portfolio performance

Appendix

0 10 20 30 40 50 60 70 80 90 100

3 months 1 year 3 years Since

managed* Invesco Global Equity Income Fund

MSCI World index

Invesco Global Equity Income Fund

Fund profile

Past performance is not a guide to future performance.

Source: Lipper as at 31 March 2015. Fund performance figures are shown for the A Acc share class, in USD on a mid-to-mid basis, inclusive of reinvested income and net of ongoing charges and portfolio transaction costs. The figures do not reflect the entry charge paid by individual investors. Benchmark source:

Investment

objective

Aims to generate a rising level of

income, together with long-term

capital growth, investing primarily in

global equities

Fund inception

2 March 2009

Invesco Global Equity Income Fund

has been managed by Invesco since

5 July 2010

Benchmark

MSCI World index ND

Fund manager

Nick Mustoe

(Supported by the Invesco Perpetual

Global Equity Income Group)

Investment

philosophy and

process

Unconstrained, valuation-led,

bottom-up investment approach

We aim to construct a high

conviction portfolio of the best global

quality income ideas

No. of holdings

40 – 70

Market cap

All cap

Average holding

period

3 years

Invesco Global Equity Income Fund

Invesco Perpetual Global Equity Income Group

Bringing together the best regional quality income ideas

Specialist regional income managers

Name

Role

Industry experience

(years)

Firm tenure

(years)

Simon Clinch

US - regional specialist

17

3

Stephanie Butcher

Europe ex UK – regional specialist

21

12

Mark Barnett

UK – regional specialist

23

19

Tim Dickson

Asia ex Japan – regional specialist

22

7

Tony Roberts

Japan – regional specialist

20

15

Management

Nick Mustoe

Chief Investment Officer, Invesco Perpetual

30

5

Strategy oversight and implementation

Martin Weiss

Investment Strategist

24

10

Arwel Green

Product Manager, Global Equities & Multi-Asset

14

14

Product Director

John Botham

Product Director, Global Equities

22

1

7

Invesco Perpetual Global Equity Income Group

The benefits of our team approach



Seasoned fund managers, not analysts



Best of breed stocks - the highest conviction quality income ideas from

regional portfolios



Ownership of the idea within the portfolio



Portfolio construction experience and expertise

Investment philosophy

Quality income and capital upside

We seek companies that:



Can

grow margins

&

increase financial returns

across an economic cycle



Exhibit

strong and sustainable free cash flow



Engage in

capital allocation that benefits shareholders



We believe offer

attractive income and capital upside

opportunities

Investment process

High Conviction

Unconstrained

Valuation driven

Competition for capital

Typically 40 – 70 stocks.

Position sizes are based

on risk/reward

assessment

Multi-level system of risk

management

Ideas are generated from

the research capability of

our regional equity

investment teams.

Idea generation

Exhaustive bottom-up

analysis of the business

and its valuation

Comprehensive

understanding of the

industry

Must meet our quality

income criteria.

Fundamental research

Portfolio construction

& risk management

Investment process

Idea generation

11

Source: Invesco Perpetual as at 31 March 2015. For illustrative purposes only.

Regional equity investment

teams

Over 15,000 companies

All market coverage

Best regional income ideas

5 regional income

specialists

The best regional quality

income ideas

GEIG



Invesco Perpetual has a long history

of successful active equity income

investing



Ideas are sourced from the

Henley-based equity investment team (32

members)



Deep knowledge of local markets is

key to identifying attractive regional

income opportunities



5 regional income specialists,

represent the wider team



The best regional quality income

ideas are presented to the Global

Equity Income Group (GEIG)

Investment process

Fundamental research

Company valuation

Financials

We seek to understand current and future:



Revenues



Margins



Return on capital



Balance sheet structure and stability



Earnings and cash flow volatility

Company management



Capital allocation and dividend policy



Alignment of interests



Track record and strategic vision



Corporate governance

Macro/Industry

We seek to assess the:



Drivers of a business and its position within the

industry



Competitive and regulatory environment



Key high level risks and opportunities

Our approach is valuation-led and focuses on companies with strong balance

sheets, growing dividends and attractive organic growth opportunities.

Investment process

Portfolio construction

13

For illustrative purposes only.



Competition for capital: each fund manager pitches their best ideas to the

Global Equity Income Group for debate and challenge.



Consideration given to:

- Investment case

- Dividend income growth potential

- Relative attraction to existing holdings and geographical alternatives in the same

sector

- Absolute and relative risk/reward opportunity



CIO confirms stock inclusion and weight in portfolio, based on input from

debate



Portfolio is monitored to ensure diversification



Each individual fund manager ‘owns’ the stock once added and is

responsible for monitoring and updating



Holdings are sold if:

- They become fully valued

- There is a change in the investment thesis for that stock

- There exists a more attractive investment opportunity elsewhere.

Portfolio of our best

quality income ideas

globally

Investment process

Constant portfolio monitoring

Prompt

portfolio

review

Po

rtfolio

ove

rs

ig

h

t

Global macro

insight

Po

rtfolio positioning

and analysis

Constant

monitoring

Regional specialists

Chief Investment

Officer

Investment strategist

Investment oversight

team

Day to day

contact with market

Ongoing analysis of

portfolio holdings

Investment process

Multi-faceted risk management



Independent Risk Function



Global Performance and

Risk Management Team



CIO Challenge

– Adherence to philosophy

and process

– Scenario modelling

– Assesses conviction, and

rationale for holdings

– Portfolio behaviour under

different market

conditions

15

17

Our outlook for global equities in 2015



Equities look broadly fair value at a global level



But economic growth looks underpinned, hence we would expect

continued earnings growth



Valuations look better in Europe, Japan and Asia versus the US

on most valuation measures



Europe is our biggest overweight, we are more optimistic than

consensus on the growth outlook



We have a clear preference for economically sensitive stocks,

defensive earnings/bond proxies are overvalued in our view



Signs of structural change in Japan interest us, though

identifying attractive companies fulfilling our criteria is proving

more difficult

Source; Invesco as at June 2015.

Invesco Global Equity Income Fund

Current sector positioning



We see

economically sensitive sectors looking better value

than defensives or ‘ bond proxies’



We are

cautious on utilities and technology

stocks



We

like financials and industrials

, particularly in Europe



We have

neutralised our long standing underweight in the

energy

19

6

7

8

9

10

11

12

13

14

-500

-400

-300

-200

-100

0

100

200

300

2011

2012

2013

2014E 2015E 2016E

B3 Capital Surplus/(deficit) (EUR bn, LHS) B3 CET1 (%, RHS)

European Banking sector*: capital deficit turning to a

surplus, 2011-2016E (€bn)

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

2006

2008

2010

2012

2014E

2016E

Europe Dividend Yield

Banks Dividend Yield

Capital re-build presents the opportunity for stronger

European banks to grow dividends

Source: Citi Research as at 14 January 2015. Capital Surplus/(deficit) is before 2014-2016E dividends. Calculations assume minimum mortgage risk-weights of 15% with a +50% surcharge on internal model-based market risk RWAs. Target B3 CET 1 ratio is calculated by applying a B3 “fully loaded” ratio of between 10%-14.5% to each bank (based on Citi 2016E target forecasts). Each bank’s corresponding deficit/surplus has been calculated and cumulatively added to generate a sector deficit/surplus. For illustrative purposes only. *Stocks included: Banco Santander, BBVA, BNP Paribas, Bank of Ireland, Crédit Agricole, Natixis, Société Générale, Banco BPI, Banco Popolare, Banco Popular, Bankinter, Banco de Sabadell, BP Milano, CaixaBank, Commerzbank, Erste Bank, Intesa Sanpaolo, KBC, Mediobanca, Monte Dei Paschi, Piraeus Bank, UBI Banca, Unicredit, Credit Suisse, HSBC, ING, Lloyds Banking Group, Standard Chartered, Barclays, Deutsche Bank, Raiffeisen Bank International, RBS, Danske Bank, DNB, UBS, Nordea, SE Banken AB, SHB, Swedbank. 2014E to 2016E based on Citi Research estimates. Right-hand chart: UBS European Equity Strategy as at 29 August 2014. 2014E-2016E are based on UBS estimates. Data is based on UBS European coverage universe which consists of c.600 companies with total market cap of €7.5trn. UBS European banks universe consists of c.40 companies with a market cap of c.€900bn. *B3 CET 1 = Basel III Common Equity Tier 1 ratio.

European Banks dividend yield vs. the market

Globally, cyclicals looking cheap relative to

defensives

-25

-20

-15

-10

-5

0

5

10

15

Jan 80

Jan 85

Jan 90

Jan 95

Jan 00

Jan 05

Jan 10

Jan 15

Source: Invesco and Datastream as at 7 May 2015. Data shows price/book value ratio between four cyclical sectors (oil, industrials,

21

0.5

0.7

0.9

1.1

1.3

1.5

50 55 60 65 70 75 80 85 90 95 00 05 10 15

Year

Parity

Energy

Understandably unloved at present

Source: Empirical Research Partners Analysis as at 7 May 2015. 1_{Capitalisation-weighted data.}

Integrated oils relative to all other large cap stocks

Relative

price to book ratios, 1950 to May 2015



Low levels of leverage on corporate

balance sheets



Renewed management focus on

shareholder returns



Significant capex and opex reductions sow

seeds for rising prices and better

profitability in 2016 and 2017.



Dividends still secure in 2015 even at

Depressed earnings and valuation

Stock example: Aircraft manufacturer

Source: Datastream, Company data, Goldman Sachs Global Investment Research as at April 2015. For illustrative purposes only.

0

100

200

300

400

500

600

700

800

900

0

500

1,000

1,500

2,000

2,500

3,000

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15E

20

16E

20

17E

20

18E

20

19E

20

20E

P&L Expensed R&D (€mn)

Deliveries (RHS)

Historic and projected aircraft deliveries & P&L expensed

R&D (€mn)



Leading manufacturer of commercial

planes. Also produces military equipment



Strong backlog order book



Current profitability and cash generation

impacted by high R&D costs and

investment…



Net cash on balance sheet



Should lead to enhanced cash returns

2016 onwards.

23

30

40

50

60

70

80

90

Mar 12

Mar 13

Mar 14

Mar 15

Depressed sentiment and valuation

Example: What happens in Vegas, happens in Macau?

Source: Chart: Bloomberg as at 31 March 2015. Recent news bullet points sourced from newsletters and Chinese daily newspapers published between 10 February and 27 March 2015. For illustrative purposes only.

American casino and resort operating Co.

Share

price, USD



Leading global casino operator



Strong position in structural growth

markets in Asia



Chinese anti corruption drive provides

long term buying opportunity



Valued on 15x 2016 earnings, 4% yield

Entry point

December 2014

Recent news



February 2015:

Tycoon linked to

Macau casino laundering executed by

China



March 2015:

Fight against graft

targets Macau casinos

0.24 -1.72 6.35 -0.37 -2.07 1.64 3.98 -8.15 2.48 -3.16 3.65 2.89 2.20 1.63 2.76 1.49 2.76 1.49 3.95 4.01

-10

-8

-6

-4

-2

0

2

4

6

8

10

Energy Materials Industrials Cons. Disc. Cons. Staples Health Care Financials IT Telecoms Utilities

Invesco Global Equity Income Fund active sector weights

MSCI World index sector yields

Active sector weights vs. MSCI World index sector yields (%)

Invesco Global Equity Income Fund

25

Invesco Global Equity Income Fund

Top ten holdings

Source: Invesco & Bloomberg as at 31 March 2015.

1_{Last 12 month dividend yield. As at 6 May 2015.}

2_{Based on Bloomberg projected compound annual growth rate of dividend over three years. As at 6 May 2015.}

Holdings may change without notice. This is no financial advice and no recommendation to buy/hold/sell these securities.

Stocks

Portfolio weight (%)

Dividend yield

(%)

3 year dividend CAGR

(%)

Novartis

3.49

2.79

8.27

BT

3.29

2.51

11.96

Legal & General

3.13

4.34

12.46

Pfizer

2.79

3.23

6.92

Reed Elsevier

2.73

2.42

3.71

Amgen

2.67

1.65

17.13

United Technologies

2.63

2.10

6.49

British American Tobacco

2.56

4.13

5.72

Roche

2.42

3.05

8.44

Airbus 2.33

1.95

6.27

28.13

38.63

21.04

2.67

5.53

2.04

61.25

17.81

21.04

8.62

1.78

2.89

0

10

20

30

40

50

60

70

North America

Europe ex. UK

United Kingdom

Japan

Pacific Rim

Australasia

Invesco Global Equity Income Fund

MSCI World Index

*

Portfolio breakdown (%)

Invesco Global Equity Income Fund

27

Shorter-term concerns ignore the potential for

recovery and attractive valuations in Europe…

Cyclically adjusted PEs for different geographies

Current cyclically

adjusted PE (x)

LT Median (x)

(Discount)/Premium

US

26.0

22.6

15%

Asia Pacific exc Japan AC

19.1

20.8

-8%

Europe

17.6

19.5

-10%

Switzerland

23.2

21.3

9%

UK

14.7

18.2

-19%

EMU

14.5

20.5

-29%

Germany

21.3

20.1

6%

France

17.9

23.0

-22%

Spain

14.1

19.2

-26%

Italy

12.6

25.7

-51%

Past performance is not a guide to future returns. Source: JP Morgan Cazenove, Thomson Datastream as at 8 April 2015. 1_{Underlying data started from 31}

January 1970 for MSCI Europe, MSCI US, MSCI UK , MSCI Germany and MSCI Switzerland. 2_{Underlying data started from 30 September 1971. MSCI index.} 3_{Underlying data started from 31 January 1973. Thomson Datastream index.} 4_{Underlying data started from 31 January 1980. MSCI index.}5_{Underlying data started}

from 29 April 1984. MSCI index. 6_{Index captures large and mid cap representation across 4 of 5 Developed Markets countries excluding Japan and 8 Emerging}

Markets countries in the Asia Pacific region. Underlying data started from 30 November 1995. MSCI index. Current cyclically adjusted PE (x) as at 8 April 2015. All cyclically adjusted P/E data based on 10 year average nominal earnings.

Invesco Global Equity Income Fund

Net performance

29

Past performance is not a guide to future returns. Source: Morningstar © 2015 as at 31 March 2015. *Periods greater than one year are annualized. Fund and sector performance figures are shown for the A share class in USD on a mid-to-mid basis, inclusive of gross reinvested income and net of ongoing charges and portfolio transaction costs. The figures do not reflect the entry charge paid by individual investors. Benchmark source: Invesco, net return, in USD. **Invesco has managed the fund since 5 July 2010.

Calendar year returns USD (%)

2010

2011

2012

2013

2014

Invesco Global Equity Income Fund A Acc. USD

9.29

4.90

15.07

28.89

-0.84

MSCI World index

11.76

-5.54

15.83

26.68

4.94

GIF OS Global Equity Income Sector

-Quartile

2

1

2

1

3

Annualised returns USD (%)*

YTD

1 year

3 years

Since

managed**

Invesco Global Equity Income Fund A Acc. USD

2.59

-0.03

39.62

14.64

MSCI World index

2.31

6.03

41.20

13.90

Invesco Global Equity Income Fund

An attractive risk-return profile

Past performance is not a guide to future performance. 6 7 8 9 10 11 12 13 14 8 9 10 11 12 13 14

Annualised return

Annualised risk

Invesco Global

Equity Income

Fund

MSCI World

index

Global Equity

Income sector

Higher risk

Higher return

Higher risk

Lower return

Lower risk

Higher return

Lower risk

Lower return

Risk versus return (%)

31

Invesco Global Equity Income Fund

Underlying portfolio characteristics

Source: Bloomberg as at 31 May 2015. Characteristics are trailing 12 month figures.

Characteristic

Portfolio

MSCI World index

Dividend Yield

3.3%

2.4%

Price to Earnings

19.5x

19.8x

Free Cashflow Yield

8.5%

4.4%

Invesco Global Equity Income strategy

Summary

An unconstrained approach

Means that we seek the best quality income ideas wherever they may be

Regional income expertise

Brings together our best quality income ideas globally

Detailed fundamental analysis

Is valuation-led and identifies companies demonstrating quality income characteristics

Conviction-led portfolio construction

Means that we only include our best ideas and size our positions accordingly

Independent risk management

A consistent investment approach

-4

-2

0

2

4

Portfolio Style Tilt – Dec 2014

-4

-2

0

2

4

35

Outlook for global equities

80

90

100

110

120

Jan 14

Apr 14

Jul 14

Oct 14

Jan 15

Apr 15

S&P500

Euro Stoxx 50

FTSE 100

Nikkei 225

Source: LHC: Bloomberg as at 27 April 2015. All data shown in US$. 1 January 2014 = 100. RHC: Barclays 7 April 2015. EM = Emerging Markets.

-9.0

-6.0

-3.0

0.0

3.0

6.0

9.0

12.0

Dec 12

Jul 13

Feb 14

Sep 14

Apr 15

EM

US

Japan

Europe-ex-UK

UK

Stock market performance

Earnings revisions

Japan and Europe

outperforming in

2015

Strong dollar

hurting US

earnings revisions

17.3

15.7

15.4

13.7

12.7

16.8

5

10

15

20

25

30

35

USA

UK

Japan

APxJ

EM

The

World

+/-1 Stdev.

Current

Median

Outlook for global equities

-10

-5

0

5

10

15

20

MSCI Japan

MSCI AC Asia ex

Japan

MSCI UK

Contribution

to YTD total returns

(%pt)

EPS Change

PE Re-rating

Dividends

Markets are rising due to rerating,

not earnings growth

Markets are not looking cheap

Total contribution of EPS

Change

, PE Re-rating & Dividends

37

-10

-5

0

5

10

15

20

25

30

35

%

Outlook for global equities

Wide dispersion in sector returns over the last 12 months

Source: Bloomberg as at 27 April 2015 in US$. Global sectors are MSCI World sectors.

Important information

This marketing document is exclusively for use by Professional Clients and Financial Advisers in Continental Europe and Qualified Investors in Switzerland. Data as at 31.03.2015, unless otherwise stated. This document is not for consumer use, please do not redistribute. 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.

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. This marketing document is not an invitation to subscribe for shares in the fund and is by way of information only, it should not be considered financial advice. The performance data shown does not take account of the commissions and costs incurred on the issue and redemption of units. Any reference to a ranking, a rating or an award provides no guarantee for future performance results and is not constant over time. 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 check the most recent version of the fund prospectus in relation to the criteria for the individual share classes and contact your local Invesco office for full details of the fund registration status in your jurisdiction. Please be advised that the information provided in this document is referring to Class A (accumulation - USD) 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. 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, 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. This fund is domiciled in Luxembourg.