Invesco Pan European High Income Fund
Focus Fund

Invesco Pan European High Income Fund

The largest European-focused multi-asset balanced fund† using active asset allocation to achieve income and capital growth.

†Source: ©2025 Morningstar as of 31 March 2025. The largest fund in Morningstar Category - EAA Fund EUR Cautious Allocation.

    • The Fund invests primarily in European securities (debt and equity).
    • Investors should note the dynamic asset allocation risk, liquidity risk, risk of Eurozone crisis, risk of investing in convertibles/convertible bonds/convertible debts, sovereign debt risk, concentration risk of investing in higher yielding European debt securities and equities, risk of investing in perpetual bonds, risk associated with investments in debt instruments with loss-absorption features including senior non-preferred debts, contingent convertible bonds which are subject to the risk of being written down or converted to ordinary shares upon the occurrence of pre-defined trigger events and may result in a significant or total reduction in the value of such instruments, currency exchange risk, RMB currency and conversion risks of RMB hedged share classes, equities risk, credit rating risk, volatility risk, general investment risk. Investment in bonds or other fixed income securities is subject to (a) interest rate risk (b) credit risk (including default risk, downgrading risk and liquidity risk) and (c) risks relating to high yield bonds/non-investment grade bonds and/or un-rated bonds.
    • Financial derivative instruments (FDI) may be used for efficient portfolio management and hedging purpose and for investment purposes. Risks associated with FDI include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. As a result of the use of FDI for investment purposes, investors should note the additional/high leverage risk. Also, the active FDI positions implemented by the Fund may not be correlated with its underlying securities positions held by the Fund which may lead to a significant or total loss to the Fund.
    • For certain share class(es), the Fund may at discretion pay dividend out of capital and/or effectively out of capital, which amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction of the net asset value per share in respect of such share class after the monthly distribution date. (Note 1)
    • In addition, investors of Monthly Distribution-1 share classes that are currency hedged (MD-1 hedged) should be aware of the uncertainty of relative interest rates. The net asset value of the MD-1 hedged may fluctuate and may significantly differ from other share class due to fluctuation of the interest rate differential between the currency in which the MD-1 hedged is denominated and the base currency of the Fund and may result in a greater erosion of capital than other non-hedged share class. (Note 2)
    • The value of the Fund can be volatile and could go down substantially.
    • Investors should not base their investment decision on this material alone.

Why Europe?

Accommodative monetary policy

With Eurozone inflation being under controlled, the market is expecting 3 to 4 interest rate cuts by the European Central Bank this year. The low-interest environment could boost corporate earnings and bond prices.

Interest rate projection for the U.S. and Europe

Source: Bloomberg as of 13 April 2025.

Default rate remains at a low level

A lower interest rate environment helps reduce borrowing costs, making it easier for companies to repay loans.

Moody’s trailing 12-month high yield default rate with baseline forecast

Source: Moody’s Default Trends – Global, February 2025.

Attractive valuation

The valuation gap between U.S. and European stocks remains high. Additionally, the European market is more cyclical than the U.S. market, offering better potential returns during economic recovery.

Valuation differences between U.S. and European equities

Source: Bloomberg as of 28 February 2025. U.S. equities are represented by the MSCI USA Index; European equities are represented by the MSCI Europe Index. Investments cannot be made directly into an index. Past performance does not guarantee future results.

Why Invesco Pan European High Income Fund?

Active asset allocation

Active asset allocation

  • Flexible allocation between bonds, equities and cash at different stages of the economic cycle.
Attractive income

Attractive income

  • A (USD Hgd)-MD1 and A (HKD Hgd)-MD1 share classes yielded 7.61% and 6.91% respectively.*

Record date: 31/03/2025
*Aims to pay dividend on monthly basis. Dividend is not guaranteed. For MD-1 shares, dividend may be paid out of capital.

(Please refer to Note 1 and/or Note 2 of the "Important information")
Morningstar 5-star rated fund^

Morningstar 5-star rated fund^

  • A (EUR)-QD share class is ranked in the 1st quartile year-to-date, over 1 year, 3 years, 5 years, 10 years and since inception.^

Source: Invesco as at 31 March 2025.
*Annualized dividend (%) = (Amount/Share X Frequency) ÷ Price on record date. Upon dividend distribution, the Fund's net asset value may fall on the ex-dividend date. For Frequency, Monthly = 12. All distributions below USD 50/HKD 400 will be automatically applied in the purchase of further shares of the same class. Positive distribution yield does not imply a positive return.
^Any reference to a ranking, a rating or an award provides no guarantee for future performance results and is not constant over time. Performance is sourced from ©2025 Morningstar, data as of 31 March 2025. Past performance is not indicative of future performance. Investors may not get back the full amount invested. A (EUR)-QD Shares (Cumulative performance: Year-to-date: 1.22%, 1 year: 4.79%, 3 year: 9.48%, 5 year: 30.36%, 10 year: 26.49%; Calendar year performance: 2024: 5.17%, 2023: 9.43%, 2022: -9.81%, 2021: 5.02% and 2020: 2.10%). Peer group: EAA Fund EUR Cautious Allocation.

Portfolio characteristics

Fund size €6.56 billion
Average credit rating BB
Duration# 2.99
Total holdings 470
Asset breakdown
Geographical weightings
Credit ratings
Equity - Sector breakdown

Source: Invesco as at 31 March 2025. Geographical weightings, sector weightings and portfolio holdings are subject to change without notice. The weightings for each breakdown are rounded to the nearest tenth or hundredth of a percent; therefore, the aggregate weights for each breakdown may not equal 100%. #Only calculate the bond sector.

Distribution information*

*Aims to pay dividend on monthly basis. Dividend is not guaranteed; For MD-1 shares, dividend may be paid out of capital. (Please refer to Note 1 and/or Note 2 of the "Important information")

  Intended frequency

Record date

Amount/Share

Annualized dividend (%)

A (EUR)-MD1 Shares

Monthly

31/03/25

0.0400

6.11%

A (AUD Hgd)-MD1 Shares

Monthly

31/03/25

0.0460

6.79%

A (CAD Hgd)-MD1 Shares

Monthly

31/03/25

0.0510

7.16%

A (HKD Hgd)-MD1 Shares

Monthly

31/03/25

0.4790

6.91%

A (NZD Hgd)-MD1 Shares

Monthly

31/03/25

0.0530

7.64%

A (USD Hgd)-MD1 Shares

Monthly

31/03/25

0.0580

7.61%

Source: Invesco as at 31 March 2025.
Annualized dividend (%) = (Amount/Share X Frequency) ÷ Price on record date. Upon dividend distribution, the Fund's net asset value may fall on the ex-dividend date. For Frequency, Monthly = 12. All distributions below USD 50/EUR 50/AUD 50/NZD 50/CAD 50/HKD 400 will be automatically applied in the purchase of further shares of the same class. Positive distribution yield does not imply a positive return.