INVESTMENT MANAGER SUMMARY · 13/08/2014 · Firm Name Invesco Manager Tenure with Fund 11 Months Investment StrategyNehicle Commodities Contract Expiration Open Ended ASSETS' Total

Item No. 3: Annual Presentation by Invesco — Active Commodities Manager (August 13, 2014, Regular Retirement Board Meeting)

INVESTMENT MANAGER SUMMARY

MANAGEMENT

Firm Name

Invesco Manager Tenure with Fund

11 Months

Investment StrategyNehicle

Commodities Contract Expiration

Open Ended

ASSETS'

Total Firm AUM

$802.4 Billion Total Firm Assets in Strategy

$1.5 Billion

Total Assets Managed for WPERP

RP - $102.4 Million HP - $ 17.9 Million

' As of 6/30/2014

PERFORMANCE*

as of 6/30/2014 QTD YTD Inception2 Invesco Balanced Risk Commodity Strategy (gross) 1.75% 3.13% -3.17% Invesco Balanced Risk Commodity Strategy (est. net) 1.57% 2.77% -3.62%

DJ-UBS Commodities Index3 0.08% 7.08% 3.25%

Difference (net of fees) 1.49% -4.31% -6.87% `Source: BNY Mellon 2 Inception date of 9/1/2013 3 As of 6/30/2014, DJ-UBS Commodities changed its name to Bloomberg Commodities Index

FEES

Current Fee 0.70% First $100 Million 0.55% Over $100 Million

WATCH STATUS

N/A

PREVIOUSLY DISCLOSED LITIGATION

N/A

3

The Invesco Collective Trust Funds are bank collective trust funds for which Invesco National Trust Company serves as trustee and investment manager. They are available exclusively to qualified retirement plans. The funds are not FDIC insured or registered with the Securities and Exchange Commission. Fund investors and potential investors are strongly encouraged to review the funds' Declaration of Trust for additional information regarding the operation and investment objectives of the funds. Invesco Distributors, Inc., is the US distributor for the Invesco Collective Trust Funds. Both Invesco National Trust Company and Invesco Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This does not constitute an offer or solicitation of any security or product, nor constitute a recommendation of the suitability of any investment strategy for a particular investor. When evaluating whether a fund is appropriate for your investment goals, fund performance, fees and expenses are only a few of the criteria you should consider. You may also consider the investment objective, strategy and risks. Investment products offered are Not FDIC Insured, May Lose Value, and are Not Bank Guaranteed. 9599-08/14

Invesco Balanced-Risk Commodity Strategy Update for Second Quarter 2014

Water and Power Employees’ Retirement Plan August 13, 2014

Table of contents

2

Company Overview

Investment Process and Discipline

Market Overview

Water & Power Employees’ Retirement Plan Performance Review

Fee Schedule

Additional Information and Disclosures

Glossary of Investment Terms

3

Introduction

David Gluch, CFA – Client Portfolio Manager, Invesco Global Asset Allocation • Joined Invesco in 1995 • Served as head of U.S. Product Management from 2005 to 2012, overseeing

product positioning, strategy and servicing for the retail and institutional channels

• Received his B.B.A. in finance from University of Texas and is a CFA charter holder

Delia M. Roges – Managing Director, Public Funds Sales & Service Team • Joined Invesco in 2011 • Over 20 years of institutional investment management experience • Board of Regents Loyola Marymount University, Board of Advisors to the Dean

of the School of Education, Loyola Marymount University • MBA, University of Southern California; B.B.A.-Finance, Loyola Marymount

University

Presenter

Presentation Notes

Within the BRCS strategy, the team manages accounts for 3 public plans totalling $125M in AUM.

Explore Intentional Investing with Invesco

4

®

At Invesco, all of our people and all of our resources are dedicated to helping investors worldwide achieve their financial objectives. It’s a philosophy of investment excellence we call Intentional Investing®. As an independent firm, our global organization is solely focused on investment management: More than 750 investment professionals Global assets under management of

US$802.4 billion More than 6,000 employees worldwide

Invesco Asia-Pacific Asia ex-Japan Greater China Japan Australia Locations: Beijing, Hong Kong, Melbourne, New Delhi, Shenzhen, Sydney, Taipei, Tokyo

Invesco Canada Trimark Investments Canadian, regional, sector and global equity Canadian and global fixed income Balanced portfolios Location: Toronto

Invesco Fixed Income Global liquidity Stable value Global and US broad fixed income Global alternatives and bank loans

Locations: Atlanta, Chicago, Hong Kong, Houston, London, Louisville, Melbourne, New York, Palm Harbor, FL, San Diego, Tokyo

Invesco Fundamental Equity US growth equity US value equity International and global growth equity Sector equity Balanced portfolios Locations: Austin, Houston, San Francisco

Invesco Global Asset Allocation Global macro Risk parity Commodities Active balanced solutions Locations: Atlanta, Frankfurt

Invesco Perpetual Global and regional equity, including UK, European, Asian, Japanese and emerging markets Global macro Fixed income Location: Henley, UK

Invesco PowerShares Index-based exchange traded funds (ETFs) and notes (ETNs) and actively managed ETFs Domestic and international equity Taxable and tax-free fixed income Commodities and currencies

Location: Chicago

Invesco Private Capital Private equity funds of funds Customized portfolios Locations: London, New York, San Francisco

Invesco Quantitative Strategies Quantitative equity Enhanced Long/short strategies Locations: Boston, Frankfurt, New York, Tokyo

Invesco Real Estate Global direct real estate investing Global public real estate investing

Locations: Atlanta, Beijing, Dallas, Hong Kong, London, Luxembourg, Madrid, Milan, Munich, New York, Newport Beach, Paris, Prague, San Francisco, Seoul, Shanghai, Singapore, Sydney, Tokyo, Warsaw

Invesco Global Core Equity Emerging markets International and global equity US equity Locations: Atlanta, Hong Kong, San Francisco

Invesco Unit Investment Trusts Equity trusts Closed-end trusts Tax-free fixed-income trusts Taxable fixed-income trusts

Location: Chicago

WL Ross & Co. Distressed and restructuring private equity Energy private equity Locations: Beijing, Mumbai, New York, Tokyo

Source: Invesco. Invesco Ltd. client-related data, investment professional, employee data and AUM are as of June 30, 2014, and include all assets under advisement, distributed and overseen by Invesco, including those of its affiliates Invesco Distributors, Inc. and Invesco PowerShares Capital Management LLC, which have an agreement with Deutsche Bank to provide certain marketing services for the PowerShares DB products. Invesco PowerShares Capital Management LLC is the sponsor for the PowerShares QQQ and BLDRS products. ALPS Distributors, Inc. is the distributor of PowerShares QQQ, BLDRS Funds and the PowerShares DB Funds. Invesco PowerShares Capital Management LLC and Invesco Distributors, Inc. are wholly owned, indirect subsidiaries of Invesco Ltd. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail products. Invesco Ltd. is not affiliated with ALPS Distributors, Inc. or Deutsche Bank. The listed centers do not all provide products or services that are available in all jurisdictions, nor are their products and services available on all platforms. The entities listed are each wholly owned, indirect subsidiaries of Invesco Ltd., except ALPS Distributors Inc., Deutsche Bank and Invesco Great Wall in Shenzhen, which is a joint venture between Invesco and Great Wall Securities, and the Huaneng Invesco WLR Investment Consulting Company Ltd. in Beijing, which is a joint venture between Huaneng Capital Services and Invesco WLR Limited. Please consult your Invesco representative for more information.

5

Invesco Global Asset Allocation Investment strategies

Source: Invesco as of 06/30/14. 1Strategy will occasionally have small short positions in individual commodities. Short sales may cause the strategy to repurchase a security at a higher price, causing a loss. As there is no limit on how much the price of the security can increase, the strategy’s exposure is unlimited. Total GAA assets include $6.0 billion managed in multi-asset portfolios.

Global Asset Allocation: $29.6 B

Long-Only Long-Short

Multi-Asset Classes

Invesco Balanced-Risk Allocation Strategy (IBRA): $21.1 B

Invesco Global Markets Strategy (GMS): $539mm

Individual Asset Classes

Invesco Balanced-Risk Commodity Strategy (BRCS)1: $1.5 B Invesco Macro International Equity Strategy: $8.3mm

Invesco Macro Long/Short Strategy: $14.1mm

Research Focus:

Risk Allocation and Management – balance risk exposures and create well-defined risk budgets

Smart Beta – improve the expected Sharpe Ratio within asset classes

Tactical Allocation – improve the risk-return profile by shifting away from the strategic portfolio weights

Presenter

Presentation Notes

Within the BRCS strategy, the team manages accounts for 3 public plans totalling $125M in AUM.

Invesco Global Asset Allocation Investment team

6

As of 06/30/14. In addition to the members above, the team is supported by one Business Analyst and two Portfolio Analysts. Client portfolio managers (CPMs) are integrated with Invesco’s investment teams and involved in the ongoing research matters of their respective team’s portfolios. The primary responsibilities of the CPM are to represent the portfolios in the marketplace and to manage the business responsibilities of the investment team. The CPM does not manage fund assets.

Team founded in 2000

11 team members with 20 years average experience

Team Member

In the Industry Since

With the Firm Since

Education

Scott Wolle, CFA Chief Investment Officer

1991 1999 Duke University, M.B.A. Virginia Tech, B.Sc.

Mark Ahnrud, CFA Portfolio Manager

1985 2000 Duke University, M.B.A. Babson College, B.Sc.

Chris Devine, CFA Portfolio Manager

1996 1998 University of Georgia, M.B.A. Wake Forest University, B.A.

Scott Hixon, CFA Portfolio Manager, Head of Investment Research

1992 1994 Georgia State University, M.B.A. Georgia Southern University, B.B.A.

Christian Ulrich, CFA Portfolio Manager

1987 2000 KV Zurich Business School, Switzerland

John Centner Investment Systems Analyst

1999 2012 University of Tennessee, B.A.

Raymond Fu Quantitative Analyst

2007 2007 Georgia State University, M.S. Georgia Institute of Technology, B.Sc.

David Gluch, CFA Client Portfolio Manager

1995 1995 University of Texas, B.B.A.

Mike McHugh, CFA Client Portfolio Manager

1996 1998 Bellevue University, B.S.

Dr. Bernhard Pfaff Portfolio Manager

1998 2005 University of Freiburg i. Br., Doctorate Degree University of Freiburg i. Br.

Max Andres Widmer, CFA Client Portfolio Manager 1988 2013 Graduate School of Business Administration, (GSBA

Zurich, Switzerland), B.B.A.

Invesco Global Asset Allocation Key Invesco contacts

7

Source: Invesco. As of 06/30/14.

Delia Roges Managing Director, Invesco Public Funds 101 California Street, Suite 1800 San Francisco, CA 94111 415-445-3388 Dave Gluch, CFA Client Portfolio Manager, Invesco Global Asset Allocation 11 Greenway Plaza, Suite 1000 Houston, TX 77046 713-214-7994 George Avery Senior Product Manager, Invesco Global Asset Allocation 1555 Peachtree Street, NE Atlanta, GA 30309 404-439-3460 Scott Wolle, CFA Chief Investment Officer, Invesco Global Asset Allocation 1555 Peachtree Street, NE Atlanta, GA 30309 404-439-3064

Table of contents

8

Company Overview


Market Overview


Fee Schedule



Invesco Balanced-Risk Commodity Strategy Investment objective

9

Strategy objectives The investment objective is to provide total return.

Outperform the Bloomberg Commodity Index by 5% per year over a full market cycle

Better diversification than the index

Additional benefits No lock-up

Daily liquidity

Transparency

Please see the derivatives and leverage risk disclosures on page 31 of this document. The Dow Jones-UBS Commodity Index changed it’s name to the Bloomberg Commodity Index on 06/30/14.

Invesco Balanced-Risk Commodity Strategy Drivers of return: four key sources

10

Source: Invesco. As of 06/30/14. For illustrative purposes only.

Structural Sources Tactical Sources

Storage Difficulty Rebalancing Optimal Roll Tactical Allocation

Long-term returns driven by average term structure which is determined by difficulty of storage and scarcity

Potential rebalancing return is higher than that available for most other asset classes; most indices ignore this

Term structure of commodity futures creates opportunity to achieve higher returns than available through front-month investments

Alter exposure to commodities based on three considerations:

Supply and demand balance

Economic environment

Price trends

Invesco Balanced-Risk Commodity Strategy Step one: Investment universe

11

Agriculture/ Livestock

Energy Industrial Metals

Precious Metals

Ass

ets

Soy Meal

Soybeans

Soybean Oil

Sugar

Corn

Wheat

Cotton

Coffee

Live Cattle

WTI Crude

Brent Crude

Gasoline

Heating Oil

Gas Oil

Natural Gas

Copper

Aluminum

Gold

Silver

Source: Invesco. As of 06/30/14.

Universe covers each of the four major complexes

Minimum liquidity of $1 billion trading volume standardized for 10% volatility

Invesco Balanced-Risk Commodity Strategy Step one: Strategic asset selection and exposure design

12

Sources: Invesco analysis and Bloomberg. Time period represented: 10/90 – 12/13. Backwardation refers to a status where prices of futures contracts with a longer maturity are lower than the spot price of the commodity. Contango refers to a status where prices of futures contracts with a longer maturity are higher than the spot price of the commodity. For illustrative purposes only. Past performance cannot guarantee future results.

WTI Crude Oil

Heating Oil

Natural Gas

Gasoline

Copper

Gold Silver

Soy Meal

Wheat

Soybean Oil

Soybeans

Corn

Live Cattle

Gasoil

Cotton Coffee

Sugar

Aluminum

Brent

-20

-16

-12

-8

-4

0

4

8

12

16

20

-20 -10 0 10 20

Ave

rage

Ann

ualiz

ed E

xces

s Ret

urn

(%)

Average Annualized Term Structure (%)

Universe

Define universe of commodities: Liquid commodities

Backwardation Contango

Top 30% get a weight multiplier of 1.0 and the bottom 30% are excluded

Commodities between the 30th and 70th percentile are ranked according to their term structure

Term Structure Adjustment

Strategic allocation based on term structure to emphasize commodities that are scarce or difficult to store

100% 0%

Backwardation

Contango

Focus on Storage Difficulty Strategic Commodity Selection

Invesco Balanced-Risk Commodity Strategy Step one: Tactical sources of return - optimal roll yield

13

Sources: Invesco analysis and DataStream. Data from 12/31/91 to 12/31/13. For illustrative purposes only. Front Month return is the GSCI Crude Oil excess return. Optimal Roll return is the Deutsche Bank Optimum Yield Light Crude Oil excess return. Term Structure of futures contracts refers to the price curve formed by the prices of futures contracts over various expiration months. Past performance is not a guarantee of future results.

40

42

44

46

48

50

52

54

56

58

60

02/09 04/09 06/09 08/09 10/09 12/09

Con

trac

t Pr

ice

on 1

2/31

/08

(%)

Contract Expiration

-8.2

-1.9

0

5

10

15

20

20 30 40

Ann

ualiz

ed E

xces

s Ret

urn

(%)

Standard Deviation (Risk)

Optimal Roll 11.7 / 26.1

Front Month 4.2 / 32.2

Term Structure Optimal Roll vs. Front Month: Excess Return and Risk

Invesco Balanced-Risk Commodity Strategy Step two: Structural sources of return - portfolio construction

14

Sources: Invesco analysis and DataStream. As of 06/30/14. 1The Dow Jones-UBS Commodity Index changed it’s name to the Bloomberg Commodity Index on 06/30/14.

0

20

40

60

80

100

Wei

ght

(%)


36

Industrial Metals 17

Precious Metals 15

Energy 49


27

Industrial Metals

15

Precious Metals

9

0

20

40

60

80

100

Wei

ght

(%)

Energy 21


28

Industrial Metals 23

Precious Metals 28

Energy 25


25

Industrial Metals

25

Precious Metals

25

Energy 32

Asset weights drive risk allocation

Risk allocation drives asset weights

Bloomberg Commodity Index1

Asset Weight Risk Contribution (%)

Balanced-Risk Commodity Strategy Portfolio

Representative Strategic Risk Contribution (%) Representative Strategic Asset Weight

Invesco Balanced-Risk Commodity Strategy Step three: Tactical asset allocation 3% risk target

Strategic Allocation is calculated through volatility and correlation estimates and re-set monthly

Active positioning allows the asset weights to deviate from the long-term strategic allocation and is adjusted monthly

Depending on the tactical indicators, the portfolio can be positioned within the pre-determined risk ranges

15

Asset classes are subject to change and are not buy/sell recommendations. Source: Invesco analysis. Above figures do not represent specific time periods or actual portfolio results. For illustrative purposes only.

0

5

10

15

20

25

Agriculture Energy IndustrialMetals

PreciousMetals

0

10

20

30

40

Agriculture Energy IndustrialMetals

PreciousMetals

25% strategic allocation

0

25

50

75

100

Strategic

0

25

50

75

100

125

Tactical

75%

–125

%

Net

Not

iona

l Exp

osur

e (%

) N

otio

nal E

xpos

ure

(%)

Composition of Risk (%) Strategic

Net Investment (%) Strategic

Composition of Risk (%) Tactical Range

Net Investment (%) Tactical Range

Invesco Balanced-Risk Commodity Strategy Step three: Historical targeted risk contribution

16

Source: Invesco analysis. The risk contributions represent each asset class as a percentage of the total portfolio standard deviation in the month in which it was implemented. Data as of 06/30/14.

Minimum (%) Average (%) Maximum (%)

Agriculture 12.75 22.44 31.77

Energy 14.22 24.82 35.72

Industrial Metals 14.81 24.10 34.82

Precious Metals 13.69 28.65 37.37

0

25

50

75

100

Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14

75%

50%

25%

Agriculture

Energy

Industrial Metals

Precious Metals

Risk Contribution (%)

Table of contents

17

Company Overview


Market Overview


Fee Schedule



0

20

40

60

80

100

120

1 11 21 31 41 51 61 71 81 91 101

111

Inde

x Val

ue (

100=

Peak

)

Months from Peak

Commodity performance tends to reverse The experience since 2008 has been as bad as any in modern history

18

100

1,000

12/7

0

12/7

5

12/8

0

12/8

5

12/9

0

12/9

5

12/0

0

12/0

5

12/1

0

0

20

40

60

80

100

120

1 11 21 31 41 51 61 71 81 91 101

111

Inde

x Val

ue (

100=

Peak

)

Months from Peak

1974 1980

1997 2008

11/1974 10/1980

5/1997

6/2008

-46% -51%

-41%

-55%

Jan-14 -42%

2008

Best & Worst of

1974, 1980, 1997

After 72 months, the index is still 42% below prior peaks – nearly the

worst experience in modern history.

1974 had the fastest recovery at 5 years. 1980 took 10 years but

bottomed after 5.

Commodity excess return index1 Major losses and recoveries 2008 vs. best and worst experiences

Sources: DataStream and Invesco analysis. Data from 01/31/70 to 06/30/14. 1GSCI Commodity Index used for this analysis. Please note that a logarithmic scale is being used in the left chart. Past performance is not a guarantee of future results. The four periods of loss are named for the year in which the index reached a major local peak. The recovery is considered complete when the index exceeds the prior local peak. Excess return above treasury bills.

Invesco Balanced-Risk Commodity Strategy Representative asset class performance returns

19

Industrial Metals Energy Agriculture Precious Metals

Sources: Bloomberg L.P., GSCI and Invesco analysis. Data as of 06/30/14 based on continuous future return indices. commodities represented by the S&P GSCI sub-indices. *Not included in the Invesco Balanced-Risk Commodity Strategy strategic allocation. **Non-index assets included in the Invesco Balanced-Risk Commodity Strategy. The Dow Jones-UBS Commodity Index changed it’s name to the Bloomberg Commodity Index on 06/30/14. Past performance is not a guarantee of future results.

9.00 8.10 6.88 6.51 6.19 5.77

3.89 2.95 2.82 2.69 0.96 0.26 0.08

-4.17 -4.18 -5.26 -5.51

-14.35 -16.89

-19.74 -20-15-10-505

10

51.56

16.79 13.15 13.09 10.79 9.85 8.43 8.09 7.08 6.45 4.63 4.04 1.65 0.10

-1.74 -1.80 -2.43 -3.07 -5.98 -7.50 -100

102030405060

2Q 2014 (%)

Year-to-Date 2014 (%)

Invesco Balanced-Risk Commodity Strategy Term structure - based asset selection for strategic allocation

20

Source: Invesco analysis. As of 06/30/14. *Gold receives a full weight in the strategic allocation due to the requirement that each complex have at least one fully weighted asset. For illustrative purposes only. Term Structure of futures contracts refers to the price curve formed by the prices of futures contracts over various expiration months.

Strategic Commodity Selection and YTD Return

100% 70% 30% 0%

Soy Meal (13.15%) WTI Crude (10.79%) Soybean Oil (-1.80%)

Copper (-3.07%) Silver (8.09%) Live Cattle (16.79%)

Soybeans (8.43%) *Gold (9.85%) Corn (-2.43%)

Unleaded Gasoline (6.45%) Gas Oil (-1.74%) Coffee (51.56%)

Sugar (4.04%) Aluminum (0.10%) Wheat (-7.50%)

Brent Crude (4.63%) Cotton (-5.98%) Natural Gas (13.09%)

Heating Oil (1.65%)

Economic environment: Growth cycle Commodities and global GDP historical year over year change

21

-4%

-2%

0%

2%

4%

6%

8%

10%

-75%

-50%

-25%

0%

25%

50%

75%

100%

71 72 73 75 76 77 79 80 81 83 84 85 87 88 89 91 92 93 95 96 97 99 00 01 03 04 05 07 08 09 11 12 13

World R

eal GD

P year over year change2 G

SCI

Ligh

t En

ergy

Exc

ess

Ret

urn1

(Y/

Y)

Year

GSCI Light Energy World GDP Growth

Commodity excess returns tend to move along with the global GDP

Sources: DataStream, World Bank, Goldman Sachs and Invesco analysis. Data from 01/31/70 to 12/31/13. Past performance is not a guarantee of future results. 1 Excess return above treasury bills. 2 2013 estimate and 2014 forecast from Goldman Sachs Economic Research.

Table of contents

22

Company Overview


Market Overview


Fee Schedule



Invesco Balanced-Risk Commodity Trust Water & Power Employees’ Retirement Plan account portfolio summary

23

All data as of 06/30/14. Source: Invesco analysis. Water & Power’s combined account fee schedule is 70 bp on the first $100mm and 55 bp thereafter. 1Bloomberg Commodity Index. The Dow Jones-UBS Commodity Index changed it’s name to the Bloomberg Commodity Index on 06/30/14.

Total Account Summary Since Inception Month/

Year Market

Value ($) Portfolio

(gross %) Gross Excess Return

Portfolio (net %)

Net Excess Return

Benchmark1

(%)

06/2014 102,406,452 0.74 0.14 0.69 0.09 0.60

05/2014 101,651,613 0.00 2.87 -0.06 2.81 -2.87

04/2014 101,651,613 1.00 -1.44 0.94 -1.50 2.44

03/2014 100,645,121 -1.88 -2.29 -1.94 -1.53 0.41

02/2014 102,574,194 4.71 -1.53 4.66 -1.58 6.24

01/2014 97,961,290 -1.35 -1.65 -1.41 -1.71 0.30

12/2013 99,303,226 -0.59 -1.83 -0.65 -1.89 1.24

11/2013 99,890,323 -2.30 -1.50 -2.36 -1.56 -0.80

10/2013 102,238,710 -0.33 1.15 -0.38 1.10 -1.48

09/2013 102,574,194 -3.01 -0.46 -3.07 -0.52 -2.55

1.75 3.12

-3.17

1.57 2.77

-3.75

0.08

7.08

3.25

-6-4-202468

10

2Q 2014 YTD 2014 Since Inception (09/01/13)

Ret

urn

(%)

Portfolio (gross) Portfolio (net) Benchmark1 Client Performance Chart (%)

Performance Table (%)

Period Portfolio (gross %)

Portfolio (net %)

Benchmark1 Gross Excess Return

Net Excess Return

2Q 2014 1.75 1.57 0.08 1.67 1.49

YTD 2014 3.12 2.77 7.08 -3.96 -4.31

Since Inception -3.17 -3.75 3.25 -6.42 -7.00

Invesco Institutional Trust Balanced-Risk Commodity Fund Water & Power Retiree Health Benefits Fund portfolio summary

24

Total Account Summary

Since Inception Month/

Year Market

Value ($) Portfolio

(gross %) Gross Excess Return

Portfolio (net %)

Net Excess Return

Benchmark1

(%)

06/2014 17,892,408 0.56 -0.04 0.51 -0.09 0.60

05/2014 17,792,391 -0.09 2.78 -0.13 2.74 -2.87

04/2014 17,808,049 1.07 -1.37 1.02 -1.42 2.44

03/2014 17,619,746 -1.96 -2.37 -2.00 -2.41 0.41

02/2014 17,971,439 4.71 -1.53 4.66 -1.58 6.24

01/2014 17,162,600 -1.37 -1.67 -1.41 -1.71 0.30

12/2013 17,401,278 -0.66 -1.93 -0.71 -1.95 1.24

11/2013 17,516,213 -2.25 -1.45 -2.29 -1.49 -0.80

10/2013 17,920,277 -0.26 1.22 -0.31 1.17 -1.48

09/2013 17,966,323 -2.88 -0.33 -2.92 -0.37 -2.55

1.55 2.82

-3.28

1.41 2.55

-3.71

0.08

7.08

3.25

-6-4-202468

10

2Q 2014 YTD 2014 Since Inception (09/01/13)

Ret

urn

(%)

Portfolio (gross) Portfolio (net) Benchmark1 Client Performance Chart (%)

Performance Table (%)

Period Portfolio (gross %)

Portfolio (net %)

Benchmark1 Gross Excess Return

Net Excess Return

2Q 2014 1.55 1.41 0.08 1.67 1.33

YTD 2014 2.82 2.55 7.08 -3.96 -4.53

Since Inception -3.28 -3.71 3.25 -6.42 -6.96

All data as of 06/30/14. Source: Invesco analysis. Water & Power’s combined account fee schedule is 70 bp on the first $100mm and 55 bp thereafter. 1Bloomberg Commodity Index. The Dow Jones-UBS Commodity Index changed it’s name to the Bloomberg Commodity Index on 06/30/14.

25

Source: Invesco analysis and gross of fees. Data as of 06/30/14. *Portfolio performance inception: 09/01/13. Note: Returns are gross of fees; net returns will be lower. Past performance is not a guarantee of future results.

Attribution Returns Since Inception

Precious Metals (%)

Agriculture/ Livestock (%)

Energy (%)

Industrial Metals (%)

Active Positioning (%)

Cash (%)

Total (%)

Retirement Plan -2.38 0.99 0.52 0.01 -2.37 0.06 -3.17

Health Benefit -2.40 0.96 0.52 -0.01 -2.41 0.06 -3.28

0.06

-2.38

0.99

0.52 0.01

-2.37 -3.17

-4

-3

-2

-1

0

1

Since Inception Water & Power Employees’ Retirement Plan Return Attribution (%)

Water & Power Employees’ Retirement Plan Performance history as of June 30, 2014

0.06

-2.40

0.96

0.52 -0.01

-2.41 -3.28

-4

-3

-2

-1

0

1

Since Inception Water & Power Retiree Health Benefits Plan Return Attribution (%)

Invesco Balanced-Risk Commodity Fund Asset Growth

26

Portfolio Changes (Retirement Plan)

Amount

Initial Value Invested as of 9/1/13 $105,761,290

Net Additions/(Withdrawals) $0

Income Received $0

Market Appreciation $(3,354,840)

Market Value as of 6/30/14 $102,406,452

Portfolio Changes (Retiree Health Benefits Fund)

Amount

Initial Value Invested as of 9/1/13 $18,499,898

Net Additions/(Withdrawals) $0

Income Received $0

Market Appreciation $(607,490)

Market Value as of 6/30/14 $17,892,408

Invesco Balanced-Risk Commodity Strategy Asset allocation versus the Bloomberg Commodity Index

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Sources: Invesco analysis and Bloomberg. Past allocations are not a guarantee of future allocations. Data as of 06/30/14. The Dow Jones-UBS Commodity Index changed its name to the Bloomberg Commodity Index on 06/30/14.

Invesco BloombergAgriculture/Livestock 27.43 38.11%

Soybeans 11.26% 6.21%Soymeal 11.25% 3.01%Soybean Oil -1.64% 2.68%Sugar 7.61% 4.00%Corn -1.10% 7.35%Wheat -1.10% 3.25%Kansas Wheat 0.00% 1.27%Lean Hogs 0.00% 2.46%Cotton 1.33% 1.50%Coffee -0.73% 3.28%Live Cattle 0.55% 3.10%

Energy 23.25 31.36%WTI Crude Oil 22.57% 8.68%Brent Crude Oil 5.07% 6.14%Gasoline 8.14% 3.74%Heating Oil -15.29% 3.41%Gas Oil 0.78% 0.00%Natural Gas 1.98% 9.39%

Precious Metals 21.87% 14.57%Silver 5.57% 3.65%Gold 16.30% 10.92%

Industrial Metals 28.21% 15.96%Copper 30.70% 6.52%Aluminum -2.49% 4.54%Nickel 0.00% 2.73%Zinc 0.00% 2.17%

Grand Total 100.76% 100.00%

Table of contents

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Company Overview


Market Overview


Fee Schedule



Water and Power Employees’ Retirement Plan Fee Schedule

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• Management Fee: o 70 basis points on the first $100 million o 55 basis points thereafter

Table of contents

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Company Overview


Market Overview


Fee Schedule



Invesco disclaimer

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Derivatives Risk The Invesco Balanced-Risk Commodity Strategy invests (directly or indirectly) a substantial portion of its assets in "derivatives"–so-called because their value "derives" from the value of an underlying asset (including an underlying security), reference rate or index–the value of which may rise or fall more rapidly than other investments. The strategy invests principally in exchange-traded futures across a diverse mix of assets including equities, bonds and commodities. The Invesco Balanced-Risk Commodity Strategy is a long-only strategy, so the portfolio will hold no net short positions at any time. For some derivatives, it is possible to lose more than the amount invested in the derivative. If the portfolio uses derivatives to "hedge" a portfolio risk, it is possible that the hedge may not succeed. This may happen for various reasons, including unexpected changes in the value of the rest of the portfolio. Over the counter derivatives are also subject to counterparty risk, which is the risk that the other party to the contract will not fulfill its contractual obligation to complete the transaction with the Fund. Leverage Risk The Invesco Balanced-Risk Commodity Strategy employs leverage as a fundamental element within the investment strategy. The implementation of a risk parity strategy requires the use of leverage in order to increase the risk of the government bond allocation in the strategy so that it can be balanced against the portfolio’s exposure to stocks and commodities. The use of derivatives facilitates the ability to create the desired level of leverage in the portfolio. Leverage may cause the portfolio to be more volatile than if the portfolio had not been leveraged because leverage can exaggerate the effect of any increase or decrease in the value of securities held by the portfolio.

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Company Overview


Market Overview


Fee Disclosure



Backwardation. A status where prices of futures contracts with a longer maturity are lower than the spot price of the commodity.

Contango. A status where prices of futures contracts with a longer maturity are higher than the spot price of the commodity.

Front Month. Used in futures trading to refer to the contract month with an expiration date closest to the current date, which is often in the same month.

Futures Contract. A financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and price. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange.

Optimal Roll. Optimizing the roll yield by choosing the most attractive futures contract.

Roll Yield. The amount of return generated in a backwardated futures market that is achieved by rolling a short-term contract into a longer-term contract and profiting from the convergence toward a higher spot price.

Spot Price. The current price at which a particular security can be bought or sold at a specified time and place. A security's spot price is regarded as the explicit value of the security at any given time in the marketplace.

Standard Deviation. Standard deviation measures a fund’s range of total returns and identifies the spread of a fund’s short-term fluctuations.

Term Structure. Term Structure of futures contracts refers to the price curve formed by the prices of futures contracts over various expiration months.

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9599 – 08/14

Thank you

INVESTMENT MANAGER SUMMARY · 13/08/2014 · Firm Name Invesco Manager Tenure with Fund 11 Months Investment StrategyNehicle Commodities Contract Expiration Open Ended ASSETS' Total

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