Invesco Pan European Equity Fund
A-Acc shares
May 2017
This marketing document is exclusively for use by Professional Clients and Financial Advisers in Continental
Europe (as defined in the important information) and Ireland, and Qualified Investors in Switzerland. This
document may also be used by financial intermediaries in the United States as defined in the important
information. This document is not for consumer use, please do not redistribute.
Contents
Invesco Pan European Equity Fund
Investment philosophy and process
Portfolio performance and positioning
2
Invesco Pan European Equity Fund
Invesco Pan European Equity Fund
Key fund features
1
A flexible
investment
approach
 By not favoring any one particular investment style, the fund
can take advantage of the best mix of individual risk/reward
opportunities in the market at any particular point in time in
whatever stock, sector or country they are to be found
2
Capitalising on
valuation
anomalies
 The team’s investment approach seeks to capitalise on
valuation anomalies in the market, with the benchmark
considered more of a useful reference point
3
Avoiding reliance
on short-term
trends
 The investment team places more emphasis on the
long-term, avoiding any over-reliance on shorter term
trends such as momentum and other technical factors
4
Experienced team  The co-fund managers, John Surplice and Martin Walker,
have managed the fund since 1 July 2003 and offer clients an
average of over 15 years’ fund management experience
4
John Surplice & Martin Walker
Fund managers
John Surplice
Martin Walker
“Equity valuations in Europe remain compelling relative to history
and compared to peers. This offers very interesting investment
opportunities in my view, especially with earnings poised to recover,
as the macroeconomic backdrop improves.”
John Surplice, Fund manager
5
Invesco Pan European Equity Fund
Fund facts
Fund name
Invesco Pan European Equity Fund
Fund objectives
The Fund aims to provide long-term capital growth by investing in a portfolio of equity or
equity related instruments of European companies with an emphasis on larger companies1
Launch date
2 January 1991
Domicile
Luxembourg
Legal structure
Luxembourg SICAV with UCITS status
Base currency
EUR
Unit type
Accumulation and distribution
Reference index
MSCI Europe-ND
Share class
Unit type
Share class ccy
Annual
management fee
Minimum
investment
ISIN code
A
Acc
EUR
1.50%
EUR 1,000
LU0028118809
There may be additional share classes2 registered for sale in individual jurisdictions.
1 For the full objectives and investment policy please consult the current prospectus.
2 For information on fund and fund’s shares registrations, please refer to the appropriate internet site or your local Invesco office. Not all share classes are the
same nor do they necessarily suit every investor. There may be differences in fee structures, in minimum investment amounts, etc. Please check the fund
prospectus for additional information.
6
Investment philosophy and process
UK and European Equities Team in Henley
Large cap fund managers
Small cap fund managers
Analysts
Mark Barnett
Head of UK
Equities
Matthew
Perowne
Fund Manager
Adrian Bignell
European Fund
Manager
Frederick Bouverat
UK Investment
Analyst
Stephanie
Butcher
European
Fund Manager
John Surplice
European Fund
Manager
Jonathan Brown
UK Fund Manager
Tim Marshall
UK Senior Investment
Analyst
James
Goldstone
UK Fund Manager
Jeff Taylor
Head of European
Equities
Erik Esselink
European Fund
Manager
Steve Smith
Trainee European
Analyst
Ciaran Mallon
UK Fund Manager
Martin Walker
UK Fund Manager
Robin West
UK Fund Manager
Oliver Collin
European Fund
Manager
Average industry experience of 17 years
Source: Invesco as at 30 June 2016. Team composition is subject to change without notice.
8
Investment philosophy
 Valuation is the key determinant of future returns over the longer term
 Market inefficiencies create valuation opportunities
 As active Fund Managers we look to take advantage of these opportunities
 We are agnostic with regards to investment style, country or sector positioning
 We are reference index aware not reference index driven
 ‘Bottom up’ and ‘top down’ factors both add value
Our fundamental investment approach combines bottom up and
top down analysis to capitalise on valuation opportunities
For illustrative purposes only.
9
Investment process
Overview
Idea
generation
Fundamental
research
Portfolio
construction
Valuation
monitoring
Assessing & monitoring risk
Source: Invesco as at 30 September 2015. For illustrative purposes only.
10
Investment process
Idea generation
Where do ideas come
from?
What are we looking
for?
Internal resources
Signs of change

Fund Manager

European Investment team

Henley Investment colleagues

Company meetings

Proprietary portfolio valuation
tool in combination with HOLT
External resources

Trusted sell side analysts

Trusted sell side strategists
For illustrative purposes only.
11
For example:

Strategy

Management

Market perceptions/consensus

Macro trends

Structural trends

Valuation
Process
Idea generation
Fundamental
research
Portfolio
construction
Valuation
monitoring
Assessing and
monitoring risk
Investment process
Fundamental research
Generic illustration at idea inception– a number of areas for potential
consideration
Secular




Industry cycle
Government policy
Regulation
Demographics
Context
 Long-term scenarios incorporating
both potential & risks
 Compare with current share price
Company specific





Management
Market position
Strategy
Restructuring
Capital allocation
 Valuation risk
 Financial risk
For illustrative purposes only.
12
Portfolio
construction
Valuation
monitoring
Cyclical




Risk
 Forecast risk
 Other risks
Idea generation
Fundamental
research
Valuation
Content
Process
Stage of the cycle
Monetary policy
Fiscal policy
Lead indicators
Assessing and
monitoring risk
Investment process
Fundamental research
Considerable experience and use of valuation methodologies across a wide
variety of industries
Valuation tools
Semiconductors
Basic Materials
Energy
Industrials
Financials
Autos
Retail
Utilities
Telecoms Services
Infrastructure
Consumer
Services
IT Hardware
Media
IT Software
Health Care
Consumer Staples
Stability of earnings
For illustrative purposes only.
13
Asset intensity
Asset intensity
Industry Groups
Process
Idea generation
Fundamental
research
Price/Book Value vs
ROE
EV/Sales vs EBIT
Margin
Dividend Yield
EV/IC – vs
ROIC/WACC
Price/Book Value
vs ROE
EV/EBITDA
FCF Yield
EV/IC – vs
ROIC/WACC
PE
EV/EBITDA
EV/Sales vs EBIT
Margin
FCF Yield
PE
FCF Yield
Dividend Yield
Stability of earnings
Portfolio
construction
Valuation
monitoring
Assessing and
monitoring risk
Investment process
Portfolio construction
Stock weightings are determined by a number of factors:
Process
Idea generation
Size of holding influenced by:
 Our assessment of potential upside
 Our assessment of risk
 Individual stock contribution to risk
 Liquidity of stock
Other considerations:
 Reference Index aware but not reference
index driven
 Impact on the shape of the portfolio of new
purchase/sale
 Top down factors/turning points can also be
relevant at specific times
Fundamental
research
Portfolio
construction
Valuation
monitoring
Assessing and
monitoring risk
Portfolio
 Portfolio typically consists of between 65 to 75 stocks
 Active position typically not over 3% in any one stock
 Typically no more than 5% in any one stock
 Active share typically over 70%
 Cash position: Portfolio intended to be fully invested
We aim to create a well diversified portfolio of
active positions
Source: Invesco as at 30 September 2015. For illustrative purposes only. For the full objectives and investment policy please consult the current prospectus.
14
Investment process
Valuation monitoring
Valuation monitoring at a stock level
Our fundamental
research, incorporating
the key structural,
cyclical and company
specific drivers,
provides the basis for
our long-term
valuation scenarios.
Incorporating our own
assumptions into
models provided by
trusted 3rd party
analysts is an
important part of
generating our
long-term valuation
scenarios.
For illustrative purposes only.
15
We continuously
monitor these drivers
& risks and, if
required, adjust our
valuation scenarios
accordingly.
Selling a holding is
normally due to:
Greater/lower
confidence in the
delivery of the
individual drivers will
determine the potential
upside/downside.
 The anticipated
delivery of some or
all of the key drivers
have failed to
materialise
We focus on the
long-term.
 The drivers are fully
appreciated in the
share price
 Another stock with
better risk/reward
characteristics
Process
Idea generation
Fundamental
research
Portfolio
construction
Valuation
monitoring
Assessing and
monitoring risk
Investment process
Valuation monitoring
Valuation monitoring at a portfolio level
Process
Idea generation
We continuously
assess:
This framework
highlights:
 Pan European sector
valuations
 Country valuations
within each sector
 Any Pan European
sector valuations
which are
cheap/expensive
against their history
 Which countries
within Europe are
cheap/expensive
against their history
at a sector level
 Our positioning on
the same basis
We then compare these
valuations with our
positioning.
Valuation metrics used:
 Cyclically adjusted
PE (x)
 Price-to-Book (x)
Any anomalies are
flagged and further
investigated. Anomalies
can include:
1. Portfolio being high
exposed a sector in
a country whilst
cheaper opportunities
in the same sector
exist in another
country
2. Portfolio being low
exposed a sector in a
country whilst being
high exposed in the
same sector in
another country
Individual holdings
which have been
highlighted are
scrutinised.
For illustrative purposes only.
16
Fundamental
research
Portfolio
construction
Valuation
monitoring
Assessing and
monitoring risk
Investment process
Assessing and monitoring risk
A combination of fund manager judgment and
quantitative analysis at a:
 Stock level
 Portfolio level
Process
Idea generation
Fundamental
research
Portfolio
construction
Valuation
monitoring
Assessing and
monitoring risk
A number of monitoring structures and tools to
assist fund manager:
 Investment oversight team
 CIO challenge
 Independent risk team
For illustrative purposes only.
17
Investment process
Assessing and monitoring risk
(CONTINUED)
Process
CIO challenge
Analysis of past performance
& risk relative to product
objectives
Idea generation
Has the fund manager met
investment objectives?
Has the fund manager
expressed conviction?
Quantitative & qualitative
view of past decisions
Has the fund manager made
sound investment
judgements?
Analysis of current
investment portfolio
Has the fund manager
applied due diligence in the
current portfolio?
Fund manager judgment and use of quantitative tools
For illustrative purposes only.
18
Fundamental
research
Portfolio
construction
Valuation
monitoring
Assessing and
monitoring risk
Investment process
Assessing and monitoring risk
(CONTINUED)
Investment oversight team*:
 Regular in depth interaction to challenge investment team
 Assisting the CIO challenge process
 Provides much valued, thorough quantitative inputs for
investment team
EMEA Independent Risk Function (IRF):
 22 risk specialists monitoring and identifying operational and
portfolio risks
 GPMR1 team (80+ personnel) provides data for the IRF including
liquidity risk analysis and Value at Risk analysis
 Quarterly meetings with fund managers to discuss early warning
signs
Source: Invesco as at 30 April 2016.
* The Investment Oversight team has 4 dedicated specialists. 1GPMR: Global Performance Measurement and Risk.
19
Process
Idea generation
Fundamental
research
Portfolio
construction
Valuation
monitoring
Assessing and
monitoring risk
Portfolio performance and positioning
Invesco Pan European Equity Fund
Indexed performance
Indexed performance1
190
180
170
160
150
140
130
120
110
100
90
80
04.12
Fund
04.13
04.14
04.15
04.16
04.17
Index²
Past performance is not a guide to future returns.
1 (Source: © 2017 Morningstar) Fund returns are inclusive of gross income re-invested and net of the ongoing charge and portfolio transaction costs, cumulative
in fund currency. The figures do not reflect the entry charge payable by individual investors.
2 MSCI Europe-ND.
21
Invesco Pan European Equity Fund
Cumulative and calendar year performance
Cumulative performance1
in %
YTD
1 month
1 year
3 years
5 years
Fund
6.47
2.15
15.70
16.16
78.25
Index2
7.74
1.69
16.67
22.88
69.35
4
3
2
4
1
267/313
169/314
117/293
177/224
31/197
Quartile ranking
Absolute ranking
Mstar GIF OS Sector: Europe Large-Cap Blend Equity
Calendar year performance1
in %
2012
2013
2014
2015
2016
Fund
20.77
33.54
3.21
7.40
0.79
Index2
17.29
19.82
6.84
8.22
2.58
Past performance is not a guide to future returns.
1 (Source: © 2017 Morningstar) Fund returns are inclusive of gross income re-invested and net of the ongoing charge and portfolio transaction costs, cumulative
in fund currency. The figures do not reflect the entry charge payable by individual investors.
2 MSCI Europe-ND.
22
Invesco Pan European Equity Fund
Holdings and active weights
Holdings and active weights1
(total holdings: 70)
Top 10 holdings
%
Top 10 positive
+
Top 10 negative
–
Roche
3.5
Deutsche Post
2.3
Nestle
2.8
BP
2.8
2.1
HSBC
1.5
Deutsche Post
2.7
International Consolidated
Airlines
1.5
2.4
2.1
British American Tobacco
Barclays
Royal Dutch Shell ‘A’ (EUR)
1.3
2.3
2.1
Royal Dutch Shell ‘A’
Ahold Delhaize
Kingspan
1.3
2.3
2.0
Siemens
Airbus
Ahold Delhaize
2.0
1.3
2.2
Legal & General
Sanofi
Total
Michelin
2.2
Stora Enso
2.0
Bayer
1.2
International Consolidated
Airlines
2.2
Michelin
1.9
GlaxoSmithKline
1.1
Deutsche Boerse
1.9
Banco Santander
1.1
Legal & General
2.2
Barclays
1.9
Allianz
1.0
1 Source: Invesco as at 30 April 2017.
This is no financial advice and no recommendation to buy/hold/sell these securities. There is no guarantee that Invesco will hold these securities within its funds
in the future.
23
Invesco Pan European Equity Fund
Geographical weightings
Geographical weightings1
in %
Geographical weightings of the
fund in %1
Fund
Index
United Kingdom
30.1
27.0
United Kingdom
France
17.6
15.9
France
Switzerland
10.0
14.6
Switzerland
Germany
9.4
14.9
Germany
Italy
7.0
3.0
Spain
6.8
5.3
Netherlands
6.5
4.1
Finland
5.6
1.5
Others
5.1
13.6
Cash
1.9
0.0
1 Source: Invesco as at 30 April 2017.
Portfolio weightings can change any time and without warning.
24
Italy
Spain
Netherlands
Finland
Others
Cash
Invesco Pan European Equity Fund
Sector weightings
Sector weightings1
in %
Sector weightings of the fund in %1
Fund
Index
Financials
30.8
20.7
Energy
14.5
6.7
Industrials
14.4
13.5
Materials
8.7
8.1
Telecommunication services
8.6
4.0
Telecommunication
services
Information technology
6.4
4.4
Information
technology
Health care
5.3
12.9
Consumer discretionary
5.3
11.0
Others
4.2
18.7
Cash
1.9
0.0
1 Source: Invesco as at 30 April 2017.
Portfolio weightings can change any time and without warning.
25
Financials
Energy
Industrials
Materials
Health care
Consumer
discretionary
Others
Cash
Invesco Pan European Equity Fund
Financial characteristics1
EUR bn
Average weighted market capitalisation
53.41
Median market capitalisation
24.94
3 year characteristics2
Alpha
-2.68
Beta
1.17
Correlation
0.93
Information ratio
-0.30
Sharpe ratio
0.32
Tracking error in %
6.29
Volatility in %
For detailed information about the 3 year characteristics please see
http://www.invescoeurope.com/CE/Glossary.pdf.
1 Source: Invesco as at 30 April 2017.
2 Source: Morningstar as at 30 April 2017.
Portfolio weightings can change any time and without warning.
26
16.26
Important information
This marketing document is exclusively for use by Professional Clients and Financial Advisers in Continental Europe (as defined below) and Ireland, and
Qualified Investors in Switzerland. This document may also be used by financial intermediaries in the United States as defined below. Data as at
30.04.2017, unless otherwise stated. This document is not for consumer use, please do not redistribute. This document is not subject to regulatory
requirements that ensure impartiality of investment recommendations and investment strategy recommendations. Therefore, the prohibition of trading
before the release of investment recommendations and investment strategy recommendations 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.
Where securities are mentioned in this document they do not necessarily represent a specific portfolio holding and do not constitute a recommendation to purchase, hold or
sell. 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 - EUR) exclusively. This fund is domiciled in Luxembourg.
For the distribution of this document, Continental Europe is defined as Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Liechtenstein,
Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden and Switzerland.
Germany, Austria, Switzerland and Liechtenstein: This document is issued in Germany by Invesco Asset Management Deutschland GmbH. This document is issued in
Austria by Invesco Asset Management Österreich – Zweigniederlassung der Invesco Asset Management Deutschland GmbH, and in Switzerland as well as Liechtenstein 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 – Zweigniederlassung der Invesco Asset Management Deutschland 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. In Liechtenstein the KIID and Prospectus
are available in German and English on www.fundinfo.com, respectively. Paying agent in Switzerland: BNP PARIBAS SECURITIES SERVICES, Paris, succursale de Zurich,
Selnaustrasse 16, CH-8002 Zürich. Paying agent in Liechtenstein: LGT Bank AG, Herrengasse 12, FL-9490 Vaduz. 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. Ireland: Issued by Invesco Global Asset
Management DAC, Central Quay, Riverside IV, Sir John Rogerson’s Quay, Dublin 2, Ireland. Regulated in Ireland by the Central Bank of Ireland. www.invescoeurope.com
Additional information for Financial Intermediaries in the United States: This material is intended for distributors, platforms, financial advisors and investment
managers located in the United States in relation to their activities with offshore clients only. It must not be redistributed to end investors. This document is neither
intended for US Persons, nor US residents. This fund must not be marketed on the US soil. This fund is registered for distribution in a limited number of countries, and
should an activity create additional obligations (such as a local registration for sale or tax notification) for Invesco, you shall seek the prior formal approval of Invesco before
undertaking such activity. Any marketing material you create on the fund for end investors shall also be expressly approved by Invesco. Issued in the US by Invesco
Distributors, Inc., 11 Greenway Plaza, Suite 1000, Houston, Texas 77046. Invesco Distributors is the appointed US sub-distributor of the Invesco Funds SICAV and the
Invesco Fund Series 1-6.
CE2767/2016
27