Notification of changes to the underlying fund of Invesco India Bond

08 Apr 2026

Notification of changes to the underlying fund of:

• L45 Invesco India Bond
• H40 Invesco India Bond*

(Together the “Affected Mirror Funds”)

We have been notified by the directors and management company of Invesco Funds (“Invesco”) of upcoming changes to the underlying fund of the Affected Mirror Funds. These changes will take effect from 30 April 2026 (the "Effective Date").

Update to prospectus and policy

Invesco have decided to update the investment objective and policy of the underlying fund of the Affected Mirror Funds. The update will allow the underlying fund of the Affected Mirror Funds to invest in debt securities issued by non-Indian issuers but denominated in Indian Rupee (“INR”). These securities form a natural part of the investment universe of an Indian Bond fund, as they are subject to macroeconomic conditions similar to those affecting Indian-domiciled companies, such as interest rate movements, inflation, and exchange rates. 

In addition, to provide greater flexibility to the Investment Manager, the underlying fund of the Affected Mirror Funds will be permitted to use derivatives for investment purposes. This change will also be reflected in the investment objective and policy of the underlying fund of the Affected Mirror Funds and the following paragraph will be added: 

“The Fund’s use of derivatives may include but is not limited to derivatives on credit, rates, and currencies and can be used to achieve both long and short positions. Such derivatives may include (but are not limited to) credit default swaps, total return swaps, interest rate swaps, currency forwards, futures and options.”

The above changes will have no impact on the investment process, nor the risk profile of the underlying fund of the Affected Mirror Funds.

Change of the methodology to calculate the global exposure and update to benchmark

At the time of the launch of the underlying fund of the Affected Mirror Funds, there were no appropriate indices available for use as a relevant benchmark for global exposure purposes. New indices have been launched and there is now a benchmark identified as an appropriate index for the calculation of the global exposure and for performance comparison.

From the Effective Date, the methodology used to calculate the global exposure of the underlying fund of the Affected Mirror Funds will be amended from Absolute Value at Risk (VaR) to Relative VaR approach using the JP Morgan GBI-EM Global India Market Index. This new benchmark will also be used as a comparator for performance comparison purposes. Currently, the underlying fund of the Affected Mirror Funds uses the CRISIL 91 Day Treasury Bill Index as its comparator. However, since this index, as a proxy for cash returns, does not align with the investment approach of the underlying fund of the Affected Mirror Funds, the new comparator is expected to provide a more suitable proxy for assessing performance.

The expected level of leverage of the underlying fund of the Affected Mirror Funds will also be updated from 50% to 40%.

These changes will take effect automatically and policyholders do not need to take any action. We recommend that policyholders seek the advice of their usual financial adviser before making any investment decisions.

Should you have any questions regarding this change, please contact the Investment Marketing Team.

*Fund applicable to Hong Kong designated policyholders.