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Invesco’s Japanese Equity Platform Citywire Conference New York 20th-22nd June 2011 This document is exclusively for use by professional clients and financial advisors in Continental Europe and is not for consumer use. These products are not available to US Investors. See Page 36 for Important Information. Please do not redistribute this document.
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Page 1: Invesco japan equity_citywire_ny_jun_2011

Invesco’s Japanese Equity Platform

Citywire Conference New York 20th-22nd June 2011

This document is exclusively for use by professional clients and financial advisors in Continental Europe and is not for consumer use. These products are not available to US Investors. See Page 36 for Important Information. Please do not redistribute this document.

Page 2: Invesco japan equity_citywire_ny_jun_2011

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A Table of Contents

1. At a Glance

Invesco Japanese Value Equity Fund

Invesco Japanese Equity Advantage Fund

2. Invesco Japanese Value Equity Fund

3. Invesco Japanese Equity Advantage Fund

4. Outlook: Why Japan now?

Appendix

Page 3: Invesco japan equity_citywire_ny_jun_2011

1. At a Glance Invesco Japanese Value Equity Fund Invesco Japanese Equity Advantage Fund

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Invesco Japanese Value Equity Fund

Large cap focus Currently 67 names held (as at the end of May 2011)

Relative value Relatively cheap + long-term growth consideration

Bottom–up team approach Six experienced investment professionals based in Tokyo

True long term investor Low turnover

Strong performance Proven long-term track record

Fund size: $650million

The Japanese equity value strategy total AUM: $6.4billion *Fund size and AUM are as at the end of May 2011

The Core Japanese Equity fund

Page 5: Invesco japan equity_citywire_ny_jun_2011

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Invesco Japanese Equity Advantage Fund

The fund focusing on strong franchise

1. Past performance should not be construed as a guarantee of future performance. As of 31 May, 2011. The ref. index* is TOPIX. Performance returns reflect the average annual rates of return. Invesco Japanese Equity Advantage Fund Class HN shares performance figures are presented NET of investment management fees and are quoted in JPY terms. Performance returns are compared to those of an unmanaged market index and are considered to be a relevant comparison to the portfolio. Comparisons of performance assume the reinvestment of all dividends and income. Performance figures are based on price comparison of NAV to NAV. Securities of small capitalization companies involve greater risk and the markets for such securities may be more volatile and less liquid. The performance before fund merger date is the one of MS INVF Japanese Equity Advantage Fund I shares.

Strong alpha has been generated over the ref. index by 3.88%1, annualised, for the last 5years

No style bias No style or market cap bias concentrating 41 names (as at the end of May 2011)

Franchise value Strong free cash flow based upon sustainable business franchise, leading to generate shareholder value

Bottom–up team approach Six experienced investment professionals based in Tokyo

True long term investor Low turnover

Strong performance Outperforming the ref. index* every year since inception, regardless of market cycles

Page 6: Invesco japan equity_citywire_ny_jun_2011

2. Invesco Japanese Value Equity Fund

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1. The views and opinions expressed herein are those of Invesco.

Investment Philosophy Focus on relative values with long term perspective

•Philosophy

Because financial markets tend to focus on short-term factors, stock prices often fail to reflect the intrinsic value of companies. We believe that longer-term investors can take advantage of these pricing anomalies by purchasing stocks of companies that are currently under-priced, and by selling them before their prices reach excessive levels.1

•Investment Approach

– Value-orientated, bottom-up approach to stock selection focuses on quality of earnings and competitiveness over the long-term with stock prices presenting attractive relative values.

– Preliminary valuation screens are based on price to cash flow, price to book value, and price to earnings

– In-depth fundamental research and company visits analyse business strategy, franchise, competitiveness, management quality and long-term growth opportunities

•Key Strengths

- Proven strong long-term track record

- Consistent investment style

- Stable and experienced investment team

- True long-term investor; low portfolio turnover

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Investment Decision Making Process

•Tokyo Investment Strategy Committee (monthly)

•Investment Environment Analysis

—Economic Outlook (Domestic/Overseas)

—Currencies

—Interest Rates

—Equity Markets

Investment Policy

Investment Research/ Stock selection

Portfolio Construction

•Screening

•Company Visits

•Stock Assessment and Evaluation Meeting

Risk Management

•Risk analysis (monthly)

•Performance analysis (monthly)

•Investment Risk Management Committee (monthly)

The information presented represents how the portfolio management team generally applies their investment processes under normal market conditions.

•Portfolio managers’ weighting decision

—Conviction

—Liquidity

—Reference Index

—Investment guideline

—Sell discipline

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Stock Selection Process In-depth analysis and substantial discussions with collective wisdom of the team

Quantitative screening

•Cheapest quartile (weighted average)

•Price/Book OR Price/Cash flow OR Price/Earnings

•Market capitalization \30 billion or more

The information presented represents how the portfolio management team generally applies their investment processes under normal

market conditions.

Investment universe: 1,700 Stocks

Fundamental screening

•Macro economic idea (Tokyo Investment Strategy Committee)

•Stock and industry idea (internal analysts)

•Interactive communication

In-depth research

Stock Assessment and Evaluation Meeting

•Long-term value

•Opportunity

•Catalyst Portfolio construction •Weight consideration •Liquidity •Valuation •Review •Stability

200-400 Stocks

100-150 Stocks

50-70 Stocks

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Portfolio Construction

• Approximately 50–70 stock holdings depending on market conditions

• Weighting consideration

• Diversification: Different Characteristics of Value

Growth Value

Temporarily undervalued due to short term market conditions while still holding world-class technologies and products

Cyclical Value Undervalued in the current business cycle

Stable Value Undervalued and not affected by business cycles

Deep Value Temporarily undervalued to an excess level due to specific conditions

Special Value Neglected in the market even with high growth and earnings potential

Conviction Valuation

Liquidity Diversification

This is conceptual and we do not set quantitative rules according to these classifications.

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Sell Discipline

Most Expensive

Sell Candidate Neutral (Hold)

33%1 25%1

Least Expensive

Purchase Candidate Price/Book, Price/Cash Flow or Price/Earnings

Source: Invesco

1.Weighted average base.

• Consider sales upon departure from the cheapest one third of screening universe (price/book, price/cash flow, price/earnings)

• Sell for material negative fundamental developments

Page 12: Invesco japan equity_citywire_ny_jun_2011

Invesco Japanese Value Equity Fund Cumulative Performance, Presented in JPY

1. Past performance should not be construed as a guarantee of future performance. Performance returns reflect the average annual rates of return. Periods less than 1 year are not annualized. Invesco Japanese Value Equity Fund Class HN shares performance figures are presented NET of investment management fees and are quoted in JPY terms. Performance returns are compared to those of an unmanaged market index and are considered to be a relevant comparison to the portfolio. Comparisons of performance assume the reinvestment of all dividends and income. Performance figures are based on price comparison of NAV to NAV.

2. Inception date is the date of former Morgan Stanley Investment Funds Japanese Value Equity Fund’s inception.

Notes: The performance before fund merger date is the one of MS INVF Japanese Value Equity Fund Class I shares.

Performance Returns1 as of 31 May, 2011 The inception date of the Fund is 24 May, 19932

-15

-10

-5

0

5(%)

Japanese Equity Value -4.65 -14.50 -9.02 -2.75 -1.18

TOPIX -2.68 -14.19 -10.36 -3.02 -2.45

1 Year 3 Years 5 Years 10 Years Since Inception

Page 13: Invesco japan equity_citywire_ny_jun_2011

Invesco Japanese Value Equity Fund Calendar Year Performance, Presented in JPY

1. Past performance should not be construed as a guarantee of future performance. Performance returns reflect the average annual rates of return. Periods less than 1 year are not annualized. Invesco Japanese Value Equity Fund Class HN shares performance figures are presented NET of investment management fees and are quoted in JPY terms. Performance returns are compared to those of an unmanaged market index and are considered to be a relevant comparison to the portfolio. Comparisons of performance assume the reinvestment of all dividends and income. Performance figures are based on price comparison of NAV to NAV.

2. Inception date is the date of former Morgan Stanley Investment Funds Japanese Value Equity Fund’s inception.

Notes: The performance before fund merger date is the one of MS INVF Japanese Value Equity Fund Class I shares.

Performance Returns1 as of 31 May, 2011 The inception date of the Fund is 24 May, 19932

-50

-40

-30

-20

-10

0

10

20

30

40

50

60(%)

Japanese Value

Equity Fund

-6.49 -0.87 13.99 -43.1 -5.35 12.35 34.88 11.27 19.96 -18.2 -19.4 -14.4 47.71 -3.78 -5.16 -1.3 0.7 4.61

TOPIX -5.65 0.96 7.62 -40.6 -11.1 3.02 45.23 11.34 25.19 -17.5 -18.9 -25 59.69 -6.57 -19.4 -6.06 2.09 9.11

2011

YTD2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994

Page 14: Invesco japan equity_citywire_ny_jun_2011

40

60

80

100

120

140

160

1993 1995 1997 1999 2001 2003 2005 2007 2009 2011

Series1 Series2

-20

-10

0

10

20

30

40

1993 1995 1997 1999 2001 2003 2005 2007 2009 2011

Cumulative return

1. Past performance should not be construed as a guarantee of future performance. Invesco Japanese Value Equity Fund Class HN shares performance figures are presented NET of investment management fees and are quoted in JPY terms. Performance returns are compared to those of an unmanaged market index and are considered to be a relevant comparison to the portfolio. Comparisons of performance assume the reinvestment of all dividends and income. Performance figures are based on price comparison of NAV to NAV.

2. Inception date is the date of former Morgan Stanley Investment Funds Japanese Value Equity Fund’s inception.

Notes: The performance before fund merger date is the one of MS INVF Japanese Value Equity Fund Class I shares.

Performance Returns1 as of 31 May, 2011 The inception date of the Fund is 24 May, 19932

(Excess)

24 May 1993=100

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Top/bottom active industry weightings Invesco Japanese Value Equity Fund

Top 5 industries

Value (%)

Topix (%)

Differences (%)

Electric Appliances 26.53 14.72 11.81

Chemicals 13.32 6.05 7.28

Machinery 10.41 5.50 4.91

Other Products 6.10 1.98 4.13

Wholesale Trade 8.44 5.52 2.92

Bottom 5 industries

Value (%)

Topix (%)

Differences (%)

Banks 0.00 9.03 -9.03

Information & Communication 1.86 5.99 -4.13

Electric Power & Gas 0.00 3.40 -3.40

Insurance 0.00 2.64 -2.64

Real Estate 0.00 2.29 -2.29

Subject to change daily. Provided for informational purposes only and should not be deemed as a recommendation to buy the securities mentioned or securities in the industries shown above.

As of 30 April, 2011

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Top 10 Holdings

Invesco Japanese Value Equity Fund

Top ten holdings are for informational purposes only and should not be considered a recommendation to buy the securities mentioned. The portfolio is actively managed, therefore, the securities listed may or may not be held in the portfolio today.

Company % of Portfolio Industry

Mitsubishi Corp. 3.87 Wholesale Trade

Canon 3.61 Electric Appliances

Toyota Motor 2.96 Transportation Equipment

Kyocera 2.94 Electric Appliances

Mitsubishi Heavy Industries 2.88 Machinery

Nissan Motor 2.85 Transportation Equipment

Toshiba 2.82 Electric Appliances

Astellas Pharmaceutical 2.41 Pharmaceutical

Fujitsu 2.28 Electric Appliances

Panasonic 2.24 Electric Appliances

Portfolio Weightings 28.85

As of 30 April, 2011

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Summary: Invesco Japanese Value Equity Fund

• Strong and stable investment team

• Consistent investment philosophy and process from long-term

perspectives

• Strong track record since the team’s formation in 1993

• Premier institutional accounts across the globe

• May be suitable for investors looking for core Japanese

exposure

Page 18: Invesco japan equity_citywire_ny_jun_2011

3. Invesco Japanese Equity Advantage Fund

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Key Features Focus on selected Japanese companies

•Philosophy

We believe investments at compelling valuations in companies with significant free cash flow, the cash that remains after capital investments, through their intangibles have a potential to add value for shareholders. Intangible values such as brand, technology and customer loyalty within a strong business franchise are difficult to create or replicate and allow companies to sustain a competitive advantage. The effective use of intangibles with controlled expenditures for tangible assets can generate strong free cash flow and increase shareholder value.

•Investment Approach

– No style or capitalisation bias, Bottom-up approach to stock selection focusing on identifying companies that generate substantial free cash flow through the effective use of not only their physical capital, but also their intangible values.

– Preliminary valuation screens are based on low capital expenditure (capex)-to-sales ratios, high operating profit margin improvement and high operating profit growth.

– In-depth fundamental research and company visits are the keys to the process and analyse various types of intangible values such as brand quality, customer loyalty, technology, etc.

•Key Strengths

- Strong outperformance over TOPIX; 3.88%1 since inception May, 2006, annualised, as of 31 May, 2011, including both the downward market in 2007 and 2008 and the upward market in 2009

- Differentiated portfolio derived by unique approach trying to exploit intangible investment opportunities

- Experienced and highly motivated Tokyo-based dedicated Japanese equity team

1. Past performance should not be construed as a guarantee of future performance. Performance returns reflect the average annual rates of return. Invesco Japanese Equity Advantage Fund Class HN shares performance figures are presented NET of investment management fees and are quoted in JPY terms. Performance figures are based on price comparison of NAV to NAV. Inception date is the date of the former Morgan Stanley Investment Funds Japanese Equity Advantage Fund’s inception.

Notes: The performance before fund merger date is the one of MS INVF Japanese Equity Advantage Fund I shares.

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Invesco Japanese Equity Advantage Fund Cumulative Performance, Presented in JPY

1. Past performance should not be construed as a guarantee of future performance. Performance returns reflect the average annual rates of return. Periods less than 1 year are not annualized. Invesco Japanese Equity Advantage Fund Class HN shares performance figures are presented NET of investment management fees and are quoted in JPY terms. Performance returns are compared to those of an unmanaged market index and are considered to be a relevant comparison to the portfolio. Comparisons of performance assume the reinvestment of all dividends and income. Performance figures are based on price comparison of NAV to NAV. Securities of small capitalization companies involve greater risk and the markets for such securities may be more volatile and less liquid.

2. Inception date is the date of the former Morgan Stanley Investment Funds Japanese Equity Advantage Fund’s inception. Notes: The performance before fund merger date is the one of MS INVF Japanese Equity Advantage Fund I shares.

Performance Returns1 as of 31 May, 2011 The inception date of the fund is 31 May, 20062

3.883.88

5.313.72

0.95

6.05

2.91

-20

-15

-10

-5

0

5

10

(%)

Japanese Equity Advantage -7.97 -1.73 2.16 -8.14 -9.97 -6.47 -6.47

TOPIX -10.89 -2.68 -1.56 -14.19 -15.28 -10.36 -10.36

Excess Return 2.91 0.95 3.72 6.05 5.31 3.88 3.88

3 Months 1 Year2 Years

(annualized)

3 Years

(annualized)

4 Years

(annualized)

5 Years

(annualized)

Since

inception

(annualized)

Page 21: Invesco japan equity_citywire_ny_jun_2011

21

Invesco Japanese Equity Advantage Fund Calendar Year Performance, Presented in JPY

1. Past performance should not be construed as a guarantee of future performance. Performance returns reflect the average annual rates of return. Periods less than 1 year are not annualized. Invesco Japanese Equity Advantage Fund Class HN shares performance figures are presented NET of investment management fees and are quoted in JPY terms. Performance returns are compared to those of an unmanaged market index and are considered to be a relevant comparison to the portfolio. Comparisons of performance assume the reinvestment of all dividends and income. Performance figures are based on price comparison of NAV to NAV. Securities of small capitalization companies involve greater risk and the markets for such securities may be more volatile and less liquid.

2. Inception date is the date of the former Morgan Stanley Investment Funds Japanese Equity Advantage Fund’s inception. Notes: The performance before fund merger date is the one of MS INVF Japanese Equity Advantage Fund I shares.

Performance Returns1 as of 31 May, 2011 The inception date of the fund is 31 May, 20062

2.823.820.76

8.60

1.93

-50

-40

-30

-20

-10

0

10

20

(%)

Japanese Equity Advantage -3.71 1.72 11.44 -32.01 -8.29

TOPIX -5.65 0.96 7.62 -40.62 -11.11

Excess Return 1.93 0.76 3.82 8.60 2.82

2011YTD 2010 2009 2008 2007

Page 22: Invesco japan equity_citywire_ny_jun_2011

22

1 year rolling excess return distribution

Upward market Downward market

TOPIX

Excess r

etu

rn v

s.

TO

PIX

Performance Returns1 as of 31 May, 2011 The inception date of the fund is 31 May, 20062

1.Past performance should not be construed as a guarantee of future performance. Performance returns reflect the average annual rates of return. Periods less than 1 year are not annualized. Invesco Japanese Equity Advantage Fund Class HN shares performance figures are presented NET of investment management fees and are quoted in JPY terms. Performance returns are compared to those of an unmanaged market index and are considered to be a relevant comparison to the portfolio. Comparisons of performance assume the reinvestment of all dividends and income. Performance figures are based on price comparison of NAV to NAV. Securities of small capitalization companies involve greater risk and the markets for such securities may be more volatile and less liquid.

2.Inception date is the date of the former Morgan Stanley Investment Funds Japanese Equity Advantage Fund’s inception.

Notes: The performance before fund merger date is the one of MS INVF Japanese Equity Advantage Fund I shares.

% of positive excess return vs.

TOPIX : 91%

% of positive excess return vs.

TOPIX : 73%

Upward market

(Positive TOPIX return) Downward market

(Negative TOPIX return)

Number of TOPIX 1 year return 15 33

Number of positive excess 1 year return 11 30

Win rate 73% 91%

-5%

0%

5%

10%

15%

20%

-50% -40% -30% -20% -10% 0% 10% 20% 30%

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23

Top 10 Holdings Invesco Japanese Equity Advantage Fund

Source: Invesco

There is no guarantee that the securities will be held by Invesco funds in the future. and should not be deemed as a recommendation to buy the securities mentioned or securities in the industries shown above.

Data as of 30 April, 2011

TOPIX Top 10 Company % of

Portfolio Industry Business

Toyota Motor Rakuten 5.00 Services Operator of well-known internet shopping mall website "Rakuten Ichiba"

Mitsubishi UFJ Fin Tsumura 4.97 Pharmaceutical Leading oriental herbal medicine producer in Japan

Honda Motor Canon 4.91 Electric Appliances Holds top market shares in laser printers and digital cameras

Canon Toyota Tsusho 4.55 Wholesale Trade Trading firm for automobile-related and other products

Sumitomo Mitsui Fin M3 4.22 Services Unique provider of medical-related information support service via website

Mitsubishi Corp Ricoh 4.18 Electric Appliances One of Japan’s leading copier machine makers

Mizuho Fin SMC 4.17 Machinery World's largest producer of FA pneumatic equipment

Takeda Pharmaceutical

Keyence 4.10 Electric Appliances Specialist of FA sensors

Softbank Hamamatsu Photonics

3.98 Electric Appliances R&D oriented company with cutting-edge optical technology as basic technology

Komatsu Marubeni Corp. 3.73 Wholesale Trade One of biggest Japanese general trading companies

Portfolio Weightings

43.82

Page 24: Invesco japan equity_citywire_ny_jun_2011

24

Free Cash Flow Yield Invesco Japanese Equity Advantage Fund Free Cash Flow Yield of the portfolio is higher than that of listed companies.

Note: Free cash flow of listed companies = Forward Net Profit + Forward Depreciation Cost – Forward CAPEX. Where data is available. The portfolio excludes firms whose market capitalization is less than ¥25 billion at the time of screening in the stock selection process as the strategy does not invest in firms with limited liquidity.

Source: Toyo Keizai, Invesco

1.For illustrative purposes. Past composition and performance should not be construed as a guarantee of future composition and performance

Free Cash-flow Yield (%)

Data as of 31 December, 2010

-6%

-4%

-2%

0%

2%

4%

6%

8%

Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10

Portfolio All Listed Companies

Listed Companies

(Mkt cap>¥25 billion)

10 year JGB Yeild

Page 25: Invesco japan equity_citywire_ny_jun_2011

25

Source: FactSet, Invesco

Subject to change daily. Provided for informational purposes only and should not be deemed as a recommendation to buy the securities mentioned or securities in the industries shown above.

Industry Weightings Invesco Japanese Equity Advantage Fund

(%) (%) Absolute terms Portfolio Relative terms Portfolio Ref. Index Differences Electric Appliances 25.06 Services 14.22 1.69 12.53 Services 14.22 Electric Appliances 25.06 14.72 10.34 Banks 8.39 Wholesale Trade 8.38 5.52 2.85 Wholesale Trade 8.38 Pharmaceutical 7.36 4.70 2.66 Pharmaceutical 7.36 Construction 4.38 2.19 2.19 Machinery 5.89 Precision Instruments 2.31 1.43 0.88 Information & Communication 5.47 Textiles & Apparels 1.40 0.97 0.44 Chemicals 4.62 Machinery 5.89 5.50 0.38 Construction 4.38 Fishery, Agriculture & Forestry 0.00 0.09 -0.09 Retail Trade 3.35 Iron & Steel 2.01 2.22 -0.21 Foods 2.83 Retail Trade 3.35 3.57 -0.22 Land Transportation 2.57 Warehousing & Harbor Trans Svc 0.00 0.23 -0.23 Precision Instruments 2.31 Foods 2.83 3.07 -0.24 Iron & Steel 2.01 Air Transportation 0.00 0.28 -0.28 Real Estate 1.78 Pulp & Paper 0.00 0.34 -0.34 Textiles & Apparels 1.40 Real Estate 1.78 2.29 -0.50 Fishery, Agriculture & Forestry 0.00 Marine Transportation 0.00 0.52 -0.52 Warehousing & Harbor Trans Svc 0.00 Information & Communication 5.47 5.99 -0.52 Air Transportation 0.00 Banks 8.39 9.03 -0.64 Pulp & Paper 0.00 Rubber Products 0.00 0.68 -0.68 Marine Transportation 0.00 Mining 0.00 0.71 -0.71 Rubber Products 0.00 Metal Products 0.00 0.73 -0.73 Mining 0.00 Other Financing Business 0.00 0.77 -0.77 Metal Products 0.00 Land Transportation 2.57 3.35 -0.78 Other Financing Business 0.00 Oil & Coal Products 0.00 0.97 -0.97 Oil & Coal Products 0.00 Securities & Commodity Futures 0.00 1.34 -1.34 Securities & Commodity Futures 0.00 Glass & Ceramics Products 0.00 1.38 -1.38 Glass & Ceramics Products 0.00 Nonferrous Metals 0.00 1.43 -1.43 Nonferrous Metals 0.00 Chemicals 4.62 6.05 -1.43 Other Products 0.00 Other Products 0.00 1.98 -1.98 Insurance 0.00 Insurance 0.00 2.64 -2.64 Electric Power & Gas 0.00 Electric Power & Gas 0.00 3.40 -3.40 Transportation Equipment 0.00 Transportation Equipment 0.00 10.23 -10.23

Data as of 30 April, 2011

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26

Stock Selection Process

Exclude Market Capitalisation less than JPY25 billion from the universe

Investment universe: 3,800 Securities *

Screenings

•Top quartile low capex to sales ratio or

•Top quartile operating margin improvement or

•Top quartile operating profit growth

Valuation Assessment

Comprehensive Research

•Valuations

•Free cash flow yields1 vs. 10 year JGB yields

Portfolio Construction

1,400 Securities

600 Securities

40 -60 Securities

*Including IPOs

Fundamentals Research

Intangible Fundamentals

•Brand

•Customers

•Technology

•Management

•Location

•Contracts

•Regulation

•History

Free Cash Flow Projection

100 Securities

1. Free cash flow is based on Invesco estimates. Free cash flow = Net income + Depreciation – Net working capital – Capex Free cash flow yield = Forward free cash flow per share ÷ Stock price

The information presented represents how the portfolio management team generally applies their investment processes under normal market conditions.

Page 27: Invesco japan equity_citywire_ny_jun_2011

27

Summary: Invesco Japanese Equity Advantage Fund

• Strong outperformance over the TOPIX regardless of market cycles since its inception

• Differentiated portfolio derived by a unique approach which tries to exploit intangible investment opportunities with robust philosophy and process

• Experienced and stable Tokyo-based Japanese equity team

• May be suitable for investors looking for a portfolio with a rigorous selection process for quality Japanese companies with strong franchise

Page 28: Invesco japan equity_citywire_ny_jun_2011

4. Why Japan now?

Page 29: Invesco japan equity_citywire_ny_jun_2011

29

Why Japan now?

• Recovery from the great disaster is surprisingly faster than previously expected

• BOJ is prepared for more accommodating monetary measures

• Currency headwind is moderating

• Well-positioned to benefit from strong growth in Asia

• Dramatically improved cost structure

• Significant piling of free cash flow

• Most attractive valuations in more than twenty years

• The market still under-owned

Favorable Risk/Reward Ratio for Investment in Japanese Equities

Forward Looking Statement Disclosure

These materials may contain statements that are not purely historical in nature but are ―forward-looking statements.‖ These include, among other things, projections, forecasts, estimates of income, yield or return, future performance targets, sample or pro forma portfolio structures or portfolio

composition, scenario analysis, specific investment strategies and proposed or pro forma levels of diversification or sector investment. These forward-looking statements can be identified by the use of forward looking terminology such

as ―may,‖ ―will,‖ ―should,‖ ―expect,‖ ―anticipate,‖ ―project,‖ ―estimate,‖ ―intend,‖ ―continue,‖ ―target,‖ ―believe,‖ the negatives thereof, other

variations thereon or comparable terminology. Forward looking statements are based upon certain assumptions, some of which are described herein.

Actual events are difficult to predict, are beyond Invesco’s control, and may substantially differ from those assumed. All forward-looking statements

included herein are based on information available on the date hereof and Invesco assumes no duty to update any forward-looking statement.

Accordingly, there can be no assurance that estimated returns or projections can be realized, that forward-looking statements will materialize or that actual

returns or results will not be materially lower than those presented.

Forward Looking Statement Disclosure

These materials may contain statements that are not purely historical in nature but are ―forward-looking statements.‖ These include, among other things, projections, forecasts, estimates of income, yield or return, future performance targets, sample or pro forma portfolio structures or portfolio composition, scenario analysis, specific investment strategies and proposed or pro forma levels of diversification or sector investment. These forward-looking statements can be identified by the use of forward looking terminology such as ―may,‖ ―will,‖ ―should,‖ ―expect,‖ ―anticipate,‖ ―project,‖ ―estimate,‖ ―intend,‖ ―continue,‖ ―target,‖ ―believe,‖ the negatives thereof, other variations thereon or comparable terminology. Forward looking statements are based upon certain assumptions, some of which are described herein. Actual events are difficult to predict, are beyond Invesco’s control, and may substantially differ from those assumed. All forward-looking statements included herein are based on information available on the date hereof and Invesco assumes no duty to update any forward-looking statement. Accordingly, there can be no assurance that estimated returns or projections can be realized, that forward-looking statements will materialize or that actual returns or results will not be materially lower than those presented.

Opinons may change without notice.

Page 30: Invesco japan equity_citywire_ny_jun_2011

Appendix

Page 31: Invesco japan equity_citywire_ny_jun_2011

31

Japanese Equity Team

Kunihiko Sugio

Chief Investment Officer

Chief Portfolio Manager – Japanese Equity Value

Kunihiko is the chief investment officer for Japan and a portfolio manager for our Japanese Equity Value portfolios. He joined Invesco Japan in 2010 and has 26 years of investment experience. Prior to joining the firm, he was a managing director at Morgan Stanley where he managed the Japanese Equity Value strategy. Prior to that, he was a director and a fund manager at Baring International Investment Management Company Limited, Tokyo. Before that, he worked for Okasan Securities Company Limited for eleven years in Tokyo, London and New York in Japanese equity research and institutional sales. Kunihiko received a B.A. in economics from Wakayama University.

Daiji Ozawa, CFA

Chief Portfolio Manager – Japanese Equity Value

Daiji is a portfolio manager for our Japanese Equity Value portfolios. He joined Invesco Japan in 2010 and has 24 years of investment experience. Prior to joining the Firm, he was a Japanese Equity Value portfolio manager at Morgan Stanley. Before that, he was Head of Investment (Equity) at Western Asset Management (Tokyo), and Director and Head of Equity Investments at Cititrust & Banking Corporation (Citigroup Asset Management). Prior to that, he was a senior portfolio manager at Tokyo-Mitsubishi Asset Management. He began his career as a banker at the Bank of Tokyo. Daiji received a B.A. in Political Science from Waseda University. He holds the Chartered Financial Analyst designation and is a Chartered Member of the Security Analysts Association of Japan.

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Japanese Equity Team

Tadao Minaguchi

Chief Portfolio Manager – Japanese Equity Advantage

Tadao is a portfolio manager for our Japanese Equity Advantage portfolios. He joined Invesco Japan in 2010 and has 17 years of investment experience. Prior to joining the firm, he worked at Morgan Stanley where he launched and managed the Japanese Equity Advantage strategy. Before being appointed as a portfolio manager, he served as a research analyst covering non-manufacturing sectors such as retails, services and financials and then being rotated his coverage to manufacturing sectors such as automobiles, machinery and electric appliances. Prior to that, he was a member of the investment banking department at J.P. Morgan. Tadao received his bachelors and masters degrees in law from Keio University. He is also a Chartered Member of the Security Analysts Association

Taku Kasai

Research Analyst

Taku is a research analyst focusing on Japanese equities. He joined Invesco Japan in 2010 and has 13 years of investment experience. Prior to joining the firm, he was a research analyst at Morgan Stanley. Prior to that, He worked as CPA in Deloitte Touche Tomatsu. He was in charge of 30 companies Audit, M&A and IPO consulting. Taku received a B.A. in economics from Aoyama Gakuin University and is a Chartered Member of the Security Analysts Association of Japan.

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Japanese Equity Team

Fumichika Tanemoto

Research Analyst

Fumichika is a research analyst focusing on Japanese equities. He joined Invesco Japan in 2010 and has 15 years of investment experience. Prior to joining the firm, he was at Morgan Stanley where he was responsible for research of Japanese equity Product. Prior to that, he served as a venture capitalist with Softbank Investment Corp. where he incubated 15 investments. Prior to that, he worked as a portfolio manager with Yasuda Mutual Life Insurance where he was responsible for their asset allocation and managed global equity portfolio, then transferred to Yasuda Capital Management’s corporate research department in 2001 where he was a research analyst focusing on the materials sector. Fumichika received Bachelors and Masters degrees in engineering from Tokyo Institute of Technology and an M.B.A. in finance from the Wharton school, University of Pennsylvania. He is also a Chartered Member of the Security Analysts Association of Japan.

Hideki Harada

Research Analyst

Hideki is a research analyst focusing on Japanese equities. He joined Invesco Japan in 2010 and has nine years of investment experience. He is a research analyst focusing on Japanese equities. Prior to joining the Firm, he was at Morgan Stanley where he was responsible for research of Japanese equity products. Prior to that, he was a Japanese equity research analyst at Daiwa SB Investments in the research department. Before that, he worked as a portfolio manager and research analyst at Dai-Ichi Kangyo Asset Management. Hideki received a B.S. major in Applied Physics from the Tokyo University of Science. He is also a Chartered Member of the Security Analysts Association of Japan.

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Team Structure Research Cooperative

Extensive investment experience

Highly stable team based in Tokyo and covering the full spectrum of investment opportunities

Domestic Demand Oriented Industry Hideki Harada (9) Daiji Ozawa (24)

Pharmaceutical Tadao Minaguchi (17) Taku Kasai (13)

Materials Taku Kasai (13) Fumichika Tanemoto (15)

Research

Value

Toshiyuki Miwa

Product Specialist

Emiko Shirakuma

Tetsuya Wakabayashi

Rick Mitsuru Kawamoto

Hiroshi Kanazawa

Trading

Kunihiko Sugio – Portfolio Manager Daiji Ozawa – Portfolio Manager

Tadao Minaguchi– Portfolio Manager

Automobile and Machinery Fumichika Tanemoto (15) Taku Kasai (13)

Technology Taku Kasai (13) Fumichika Tanemoto (15)

Financial Daiji Ozawa (24) Hideki Harada (9)

Information Communication and Services Fumichika Tanemoto (15) Tadao Minaguchi (17)

Utilities Kunihiko Sugio (26) Hideki Harada (9)

Kunihiko Sugio CIO

Keiko Nogawa

Chigusa Ueno

(#) Years of investment experience. As of 31 March, 2011

Advantage

Assistant Portfolio Manager

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Risk Management Multiple layers of risk management oversight

Risk Management Risk characteristics are defined using BARRA and reviewed on a regular basis Risk Monitor Each portfolio is monitored and reviewed by independent Risk Management Group Performance Analysis Each portfolio is formally reviewed monthly at Investment Risk Management Committee (IRMC)

Source: Invesco. For illustrative purposes only.

Board of Directors

Risk Management Committee (RMC)

Investment Division

IRMC Sub committee

Report

Report

Report

Report

Monitoring

Supervise

Monitor

Risk monitoring

Risk monitoring

Monitoring, Warning, Alert, Confirm Report of adjustment

Check result data

Trading Department

Fund Management System

Compliance Department

Investment Division Investment Support Department

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Important Information

This document is exclusively for use by professional clients and financial advisors in Continental Europe and is not for consumer use. Data as at 30/04/11, unless otherwise stated. Please do not redistribute this document.

The distribution and the offering of the strategy in certain jurisdictions may be restricted by law. Persons into whose possession this document may come are required to inform themselves about and to comply with any relevant restrictions. This does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. These products are currently not available to US Investors. Persons interested in acquiring the strategy 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.

This marketing document does not form part of any prospectus. 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. Opinions and forecasts are subject to change without notice. The value of investments and the income from them can go down as well as up (this may partly be the result of exchange rate fluctuations in investments which have an exposure to foreign currencies) and investors may not get back the amount invested. Past performance is not an indication of future performance, provides no guarantee for the future and is not constant over time. 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. There is potential for increased volatility in emerging stock markets, and only a modest proportion of investable wealth should be invested in them. Investing in funds focused on specific themes, particular areas of the market or small capitalisation companies may increase the risk associated with them due to the volatility and/or the concentrated nature of these investments. Investors should read the fund simplified and full prospectuses for specific risk factors and further information. This document is not an invitation to subscribe for shares in the fund and is by way of information only. It is not intended to provide specific investment advice including, without limitation, investment, financial, legal, accounting or tax advice, or to make any recommendations about the suitability of the fund(s) for the circumstances of any particular investor. You should take appropriate advice as to any securities, taxation or other legislation affecting you personally prior to investment. Asset management services are provided by Invesco in accordance with appropriate local legislation and regulations. www.invescoeurope.com

Forward Looking Statement Disclosure These materials may contain statements that are not purely historical in nature but are ―forward-looking statements.‖ These include, among other things, projections, forecasts, estimates of income, yield or return, future performance targets, sample or pro forma portfolio structures or portfolio composition, scenario analysis, specific investment strategies and proposed or pro forma levels of diversification or sector investment. These forward-looking statements can be identified by the use of forward looking terminology such as ―may,‖ ―will,‖ ―should,‖ ―expect,‖ ―anticipate,‖ ―project,‖ ―estimate,‖ ―intend,‖ ―continue,‖ ―target,‖ ―believe,‖ the negatives thereof, other variations thereon or comparable terminology. Forward looking statements are based upon certain assumptions, some of which are described herein. Actual events are difficult to predict, are beyond Invesco’s control, and may substantially differ from those assumed. All forward-looking statements included herein are based on information available on the date hereof and Invesco assumes no duty to update any forward-looking statement. Accordingly, there can be no assurance that estimated returns or projections can be realized, that forward-looking statements will materialize or that actual returns or results will not be materially lower than those presented.

Additional information for professional clients in Germany, Austria and Switzerland

This document is issued in Germany by Invesco Asset Management Deutschland GmbH regulated by Bundesanstalt für Finanzdienstleistungsaufsicht. This document is issued in Austria by Invesco Asset Management Österreich GmbH and in Switzerland by Invesco Asset Management (Schweiz) AG. Subscriptions of shares are only accepted on the basis of the current fund prospectus. Swiss investment professionals should consider this document only in connection with the relevant monthly fund fact sheet which contains further performance information. Prospectuses and reports are available free of charge at Invesco Asset Management Deutschland GmbH, An der Welle 5, D-60322 Frankfurt/M., Invesco Asset Management Österreich GmbH, Rotenturmstrasse 16-18, A-1010 Vienna, and Invesco Asset Management (Schweiz) AG, Genferstrasse 21, CH-8002 Zurich. Paying agent for the funds registered for sale in Switzerland: BNP Paribas Securities Services, Paris, Zürich branch, Selnaustrasse 16, CH-8002 Zurich.