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Invesco Euro Corporate Bond Fund

Paul Read,

Co-Manager Fixed Income,Invesco Perpetual

7 June 2011

Citywire Frankfurt Forum

This document is exclusively for use by professional clients in Continental Europe and is not for consumer use. Please do not redistribute this document.

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The Invesco Henley Fixed Income Team

One of the UKs largest managers of retail fixed income funds

16.3bn assets under management*

Both lead managers over 25 years in fixed income markets including a 16 year track record at Invesco

45 awards for investment performance 5x winner of Investment Week Awards 8x winner of Lipper Fund Awards 8x winner of Standard & Poors awards

6 S&P rated funds, 6 OBSR rated funds

Source: Invesco. *As at 23 May 2011.

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Spreads tighter, yields higher

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AA rated A rated BBB rated

Euro investment grade spreads (bps)

Source: Merrill Lynch, data as at 30 April 2011.

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AA Rated A Rated BBB Rated

Euro investment grade yield to maturity (%)

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Euro credit markets longer term

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Euro investment grade spreads (bps)

Source: Merrill Lynch, data as at 30 April 2011.

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Euro investment grade yield to maturity (%)

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Invesco Euro Corporate Bond FundKey features

Euro denominated fund

Minimum 70% investment grade credit

Up to 30% in a combination of high yield and government bonds

No duration restrictions

Little or no currency risk (sector permits up to 10%)

Source: Invesco as at 31 March 2011.

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Invesco Euro Corporate Bond FundCurrent investment strategy

Source: Invesco as at 30 April 2011. There is no guarantee that the securities mentioned will be held by Invesco funds in the future

Attractive value ~28%

Includes high yield, T1/ECN and hybrids

e.g.

Pernod 4.875% 2016 UPC 8.125% 2017

Lloyds 6.439% ECNUBS 8.836% T1

Core/defensive ~56%

e.g.

NAB 3.5% 2015JPM 3.875% 2020

Telefonica 4.693% 2019France Telecom 3.875% 2020

Liquidity ~16%

Includes cash, short-dated paper,

government and government guaranteed

e.g.

Ford 7.125% 2012Germany 2.5% 2015

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Source: Invesco, Bloomberg LP. Corporate bond average is Merrill Lynch Euro Corporate Bond Index yield. Fund data isaverage position-weighted yield as at 30 April 2011. Hybrids and T1/ECNs are yield to call. High yield is ex-subordinated sub-investment grade rated bonds. Gross current yield 4.91%; gross redemption yield 5.40% as at 30 April 2011.

Invesco Euro Corporate Bond FundStill areas of value

4.08

5.455.91

7.52

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Corporate bond indexaverage

High yield in fund (5%of fund)

Hybrids in fund (10% offund)

T1/ECNs in fund (13%of fund)

Average yield (%)

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Invesco Euro Corporate Bond FundBank exposure with YTD change %

Source: Invesco as at 30 April 2011. Includes Banks and Building Societies.

40.50

0.11

14.02

3.37

6.42

16.58

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Dec 10 %

73.90Covered

2010.40Tier 1

12.55Enhanced Capital Notes

21.20Convertible

267.03Lower Tier 2

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11.00

Apr 11 %

Total

Senior

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No. of holdings Apr 11

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Subordinated bank capital

Cyclical stabilisation

Balance sheet risk reduction

Regulatory reform

Value

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Balance sheet risk reductionExample - Lloyds Banking Group

13.3%12.2%11.5%10.2%Core 1 ratio

129%136%144%155%Loan/deposit ratio

14.8%13.6%13.0%11.6%Tier 1 ratio

Key metrics

Balance sheet (m) 12/10 12/11E 12/12E 12/13E

Total assets 991,574 929,817 891,862 865,293

Risk weighted assets 406,372 382,163 395,048 384,270

Customer deposits 393,633 407,108 431,174 455,240

Source: Goldman Sachs estimates data as at 30th March 2011. There is no guarantee that the securities mentioned will be held by Invesco funds in the future.

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Source: Bloomberg LP, Merrill Lynch data, as at 30 April 2011.

Value concentrated in financials

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