Clarification of investment objective and policy of the underlying fund of L45 Invesco India Bond

26 February 2019

We have been notified by Invesco Management S.A. (“The Company”) of a clarification of investment objective and policy of the underlying fund into which L45 Invesco India Bond invests. This change will come into effect from 18 March 2019 (the “Effective Date”).

Below are the key areas for your attention we have extracted from the shareholder circular of the underlying fund of L45 Invesco India Bond.

Clarification of the investment objective and policy of the underlying fund of L45 Invesco India Bond

The investment objective and policy of the underlying fund of L45 Invesco India Bond will be clarified by reducing the maximum proportion of the NAV that may be invested in contingent convertibles from 20% to 10% of the NAV of the underlying fund.

In addition, the following sentence around the underlying fund’s currency hedging policy will be removed:

“Non-USD investments are intended to be hedged back into USD at the discretion of the Investment Manager.”

This clarification is made to align more closely with the existing practice where the hedging practice is discretionary and not systematic to the investment process. Furthermore, the current investment policy already allows the use of derivatives for hedging purposes. As a result, removing the sentence does not preclude the investment manager’s ability to hedge non-USD exposure at their discretion in the future.

This clarification will not impact the interests of existing investors, the operation and/or the way in which the underlying fund is being managed or its risk profile.

Should you have any questions regarding these changes, please contact International Funds & Investments.