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  • 1. Invesco Euro Corporate Bond FundPaul Read,Co-Manager Fixed Income,Invesco Perpetual7 June 2011Citywire Frankfurt ForumThis document is exclusively for useby professional clients in ContinentalEurope and is not for consumer use.Please do not redistribute thisdocument.
  • 2. The Invesco Henley Fixed Income Team • One of the UK’s 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 Awards47409/EH/LA-J/Citywire Frankfurt 0611 — — 8x winner of Lipper Fund Awards — 8x winner of Standard & Poor’s awards • 6 S&P rated funds, 6 OBSR rated funds Source: Invesco. *As at 23 May 2011. 2
  • 3. Spreads tighter, yields higher Euro investment grade spreads (bps) Euro investment grade yield to maturity (%) 350 5.0 300 4.5 250 4.0 200 3.5 150 3.047409/EH/LA-J/Citywire Frankfurt 0611 100 2.5 50 2.0 Apr 10 Jul 10 Oct 10 Jan 11 Mar 11 Apr 10 Jul 10 Oct 10 Jan 11 Mar 11 AA rated A rated BBB rated AA Rated A Rated BBB Rated Source: Merrill Lynch, data as at 30 April 2011. 3
  • 4. Euro credit markets – longer term Euro investment grade spreads (bps) Euro investment grade yield to maturity (%) 700 10 AA Rated AA Rated 600 A Rated 9 A Rated BBB Rated BBB Rated 8 500 7 400 6 300 5 200 447409/EH/LA-J/Citywire Frankfurt 0611 100 3 0 2 00 01 02 03 04 05 06 07 08 09 10 11 00 01 02 03 04 05 06 07 08 09 10 11 Source: Merrill Lynch, data as at 30 April 2011. 4
  • 5. Invesco Euro Corporate Bond Fund Key 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%)47409/EH/LA-J/Citywire Frankfurt 0611 Source: Invesco as at 31 March 2011. 5
  • 6. Invesco Euro Corporate Bond Fund Current investment strategy 1 2 3 Liquidity ~16% Core/defensive ~56% Attractive value ~28% Includes high yield, Includes cash, T1/ECN and hybrids short-dated paper, government and government guaranteed e.g. e.g. e.g. NAB 3.5% 2015 Pernod 4.875% 201647409/EH/LA-J/Citywire Frankfurt 0611 Ford 7.125% 2012 JPM 3.875% 2020 UPC 8.125% 2017 Germany 2.5% 2015 Telefonica 4.693% 2019 Lloyds 6.439% ECN France Telecom 3.875% 2020 UBS 8.836% T1 Source: Invesco as at 30 April 2011. There is no guarantee that the securities mentioned will be held by Invesco funds in the future 6
  • 7. Invesco Euro Corporate Bond Fund Still areas of value Average yield (%) 9 8 7.52 7 5.91 6 5.45 5 4.0847409/EH/LA-J/Citywire Frankfurt 0611 4 3 2 Corporate bond index High yield in fund (5% Hybrids in fund (10% of T1/ECNs in fund (13% average of fund) fund) of fund) Source: Invesco, Bloomberg LP. ‘Corporate bond average’ is Merrill Lynch Euro Corporate Bond Index yield. Fund data is average 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. 7
  • 8. Invesco Euro Corporate Bond Fund Bank exposure with YTD change % No. of Dec 10 % Apr 11 % holdings Apr 11 Covered 0.00 3.90 7 Senior 16.58 11.00 35 Lower Tier 2 6.42 7.03 26 Enhanced Capital Notes 3.37 2.55 1 Tier 1 14.02 10.40 20 Convertible 0.11 1.20 247409/EH/LA-J/Citywire Frankfurt 0611 Total 40.50 36.08 91 Source: Invesco as at 30 April 2011. Includes Banks and Building Societies. 8
  • 9. Subordinated bank capital • Cyclical stabilisation • Balance sheet risk reduction • Regulatory reform • Value47409/EH/LA-J/Citywire Frankfurt 0611 9
  • 10. Balance sheet risk reduction Example - Lloyds Banking Group 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 Key metrics Core 1 ratio 10.2% 11.5% 12.2% 13.3% Tier 1 ratio 11.6% 13.0% 13.6% 14.8% Loan/deposit ratio 155% 144% 136% 129%47409/EH/LA-J/Citywire Frankfurt 0611 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. 10
  • 11. 47409/EH/LA-J/Citywire Frankfurt 061111 0 100 200 300 400 500 Cons Non- Cyc Cons Cyc Energy Industrials Media Basic Industry Telecoms Source: Bloomberg LP, Merrill Lynch data, as at 30 April 2011. Utilities Insurance- Selected Euro investment grade spreads (bps) Sen Real Estate Banking- Snr Services Value concentrated in financials Cyc Capital Goods Lower Tier 2 Upper Tier 2 Tier 1
  • 12. Subordinated bank capital Sample of holdings • Lloyds 6.439% ECN 2020, 8.4% yield to maturity • Barclays 4.75% T1 2020 call, 9.3% yield to call • SocGen 7.756% T1 2013 call, 6.7% yield to call • BNP 7.781% T1 2018 call, 6.4% yield to call47409/EH/LA-J/Citywire Frankfurt 0611 There is no guarantee that the securities mentioned will be held by Invesco funds in the future. 12
  • 13. Invesco Euro Corporate Bond Fund Key purchases and sales in 2011 Steadily improving credit quality and increasing duration • Purchases — Wal-Mart 4.875% 2029, AA rated — EDF 4.5% 2040, A+ rated — Telecom Italia 5.25% 2055, BBB rated — McDonalds 4.0% 2021, A rated — Tesco 5.125% 2047, A- rated — Allianz 5.75% hybrid A+ rated • Sales47409/EH/LA-J/Citywire Frankfurt 0611 — Parpublica 5.25% 2017, BB+ rated — Barclays 4.75% T1 A- rated — LBG 6.439% 2020, BB rated — Rhodia FRN 2013, BB- rated There is no guarantee that the securities mentioned will be held by Invesco funds in the future. 13
  • 14. Invesco Euro Corporate Bond Fund Credit exposure (%) - quality improving Apr 11 Sep 10 Pps change Cash 3.22 3.08 +0.14 AAA 15.72 12.67 +3.05 AA 9.83 9.94 -0.11 A 26.29 22.00 +4.29 BBB 29.82 35.76 -5.94 BB 7.20 4.64 +2.5647409/EH/LA-J/Citywire Frankfurt 0611 B 2.24 5.54 -3.30 Source: Invesco as at 30 April 2011. Data excludes unrated bonds, CDS, futures & equities. 14
  • 15. Invesco Euro Corporate Bond Fund Modified duration 5.5 5 5 4.5 4.5 4 4 3.5 3.5 3 3 Modified duration (lhs)47409/EH/LA-J/Citywire Frankfurt 0611 2.5 2.5 10Yr bund yield, % 2 2 Apr Aug Dec Apr Aug Dec Apr Aug Dec Apr Aug Dec Apr Aug Dec Apr 06 06 06 07 07 07 08 08 08 09 09 09 10 10 10 11 Source: Invesco as at 30 April 2011. 15
  • 16. Direct peripheral exposure in the index is limited • Italy 8.6% of market — Banking 4.6% (Intesa Sanpaolo, Unicredit, Mediobanca, M del Paschi etc) — Utility 1.4% (Enel, Edison, Terna, A2A) — Energy 0.6% (ENI) — Insurance 0.6% (Generali, Assicurazioni) — Telcos 0.6% (Telecom Italia, Olivetti) • Spain 4.7% of market — Banking 1.8% (Santander, BBVA, Banesto, La Caixa, Banco Bilbao) — Energy/utility 1.6% (Enagas, Repsol, Gas Natural, Iberdrola)47409/EH/LA-J/Citywire Frankfurt 0611 — Telecom 1.1% (Telefonica) • Portugal (1.1%), Ireland (31bps), Greece (zero) Source: Data based on Merrill Lynch Euro Corporate Bond Index March 2011 There is no guarantee that the securities mentioned will be held by Invesco funds in the future. 16
  • 17. Invesco Euro Corporate Bond Fund Peripherals exposure %1 • Currently no exposure to Greece or Ireland • 0.35% in Portugal — Parpublica 0.14% — Portugal Telecom 0.21% • 5.45% in Italy — e.g. Lottomatica, A2A, Unicredit, Intesa, Tel Italia • 5.13% in Spain e.g BBVA, Santander, Telefonica, Gas Natural, Iberdrola47409/EH/LA-J/Citywire Frankfurt 0611 — Source: Invesco as at 30 April 2011. 1Exposure excludes government & government agency. There is no guarantee that the securities mentioned will be held by Invesco funds in the future. . 17
  • 18. High yield fundamentals supportive Moody’s Europe trailing 12-month high European high yield credit ratio forecasts yield default rate with forecast 20% 5 Actual Forecast Net debt/EBITDA EBITDA/Interest 18% 4.4 16% 4.1 4.1 14% 3.9 4 12% 3.7 3.6 3.5 10% 3.4 8% 3.1 3 6% 2.747409/EH/LA-J/Citywire Frankfurt 0611 4% 2% 0% 2 1999 2001 2003 2005 2007 2009 2011 2007 2008 2009 2010 2011E Source: Left hand chart, Moody’s Monthly Default Report, April 2011. Right hand chart, JP Morgan data as at January 2011. Data based on 56 high yield companies. 18
  • 19. But yields now quite low % of the high yield market (excluding financials) in each yield cohort 30 Mar-11 Mar-10 25 20 15 1047409/EH/LA-J/Citywire Frankfurt 0611 5 0 <5% 5%-6% 6%-7% 7%-8% 8%-9% 9%-10% >10% Source: Merrill Lynch European Currency High Yield Index, ex financials, 2% constrained. 19
  • 20. Invesco Euro Corporate Bond Fund Performance % Since Launch Cumulative returns YTD 1 year 3 years 5 years (31 March 2006) Invesco Euro Corporate Bond Fund 2.97 4.31 31.17 35.37 34.55 Mstar GIF OS EUR Corporate Bond 1.23 1.81 12.61 13.10 12.62 Rank 14/158 20/148 1/96 3/85 3/84 Quartile 1 1 1 1 1 Annualised returns Invesco Euro Corporate Bond Fund n/a n/a 9.48 6.24 6.02 Mstar GIF OS EUR Corporate Bond n/a n/a 4.05 2.49 2.37 Calendar year 2007 2008 2009 2010 Invesco Euro Corporate Bond Fund -0.7 -6.6 30.2 6.347409/EH/LA-J/Citywire Frankfurt 0611 Mstar GIF OS EUR Corporate Bond -1.1 -7.8 15.6 4.2 Quartile 2 3 1 1 Past performance is not a guide to future returns Performance figures are shown in euro on a mid-to-mid basis, for the ‘A’ share class, inclusive of gross reinvested income and net of the annual management charge and all other fund expenses. The figures do not reflect the initial charge paid by individual investors. Data Source © 2011 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information All data as at 30 April 2011. S&P Fund Rating as at February 2011. 20
  • 21. Appendix
  • 22. Credit ex financials Euro investment grade spreads (bps) Euro investment grade yield to maturity (%) 450 8 Telecoms Telecoms 400 Utilities Utilities 7 Industrials Industrials 350 300 6 250 5 200 150 447409/EH/LA-J/Citywire Frankfurt 0611 100 3 50 0 2 00 01 02 03 04 05 06 07 08 09 10 11 00 01 02 03 04 05 06 07 08 09 10 11 Source: Merrill Lynch, data as at 29 April 2011. 22
  • 23. High yield spreads and yields Spread (bps) Yield to maturity (%) 1000 12 All All BB Rated BB rated 900 B Rated 11 All ex financials B rated All ex financials 800 10 700 9 600 8 500 747409/EH/LA-J/Citywire Frankfurt 0611 400 6 300 5 Apr 10 Jul 10 Oct 10 Jan 11 Mar 11 Apr 10 Jul 10 Oct 10 Jan 11 Mar 11 Source: Merrill Lynch, data as at 30 April 2011, European Currency Index includes sterling and euro denominated bonds. 23
  • 24. Banks raising capital and de-risking Banks’ core T1 ratios European banks’ aggregate loan to deposit ratio 130 18% 16% 14% 12% 125 10% 8% 6% 120 4% 2% 0%47409/EH/LA-J/Citywire Frankfurt 0611 JP Morgan Standard Chartered Bank of America Morgan Stanley American Express HSBC SocGen Bank of Ireland UBS RBS Santander Nordea LBG ING Barclays SunTrust DB AIB BBVA BNP Unicredit Citigroup Intesa Sanpaolo Credit Agricole Wells Fargo Credit Suisse Capital One 115 110 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Source: Left hand chart, Goldman Sachs. Data to latest filings which is 1Q11 except Bank of Ireland & AIB which are 4Q10. Right hand chart, Credit Suisse to 31 March 2011. There is no guarantee that the securities mentioned will be held by Invesco funds in the future. 24
  • 25. German bund yields (%) 10-year yield (%) 30-year yield (%) 6 6 5 5 4 4 3 347409/EH/LA-J/Citywire Frankfurt 0611 2 2 00 01 02 03 04 05 06 07 08 09 10 11 00 01 02 03 04 05 06 07 08 09 10 11 Source: Bloomberg as at 29 April 2011. 25
  • 26. Invesco Euro Corporate Bond Fund Credit exposure % 100 90 80 70 60 50 40 3047409/EH/LA-J/Citywire Frankfurt 0611 20 10 0 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Cash+AAA AA A BBB High Yield NR Source: Invesco to 30 April 2011. NR is unrated investment grade bonds. 26
  • 27. Invesco Euro Corporate Bond Fund Top 10 country exposures %1 Country % of fund France 17.75 Germany 17.36 UK 16.44 US 10.44 Spain 8.09 Italy 7.41 Australia 4.87 Netherlands 4.1947409/EH/LA-J/Citywire Frankfurt 0611 Canada 1.88 Switzerland 1.40 Total 89.83 Source: Invesco as at 31 March 2011. 1Exposure refers to ultimate parent country of issuer. 27
  • 28. Invesco Euro Corporate Bond Fund Issue and issuer exposure % of % of Top 10 issues fund Top 10 issuers fund Germany 2.5% 2021 5.66 Federal Republic of Germany 7.40 Lloyds 6.439% ECN 2020 2.93 Lloyds Banking Group 4.43 Wal-Mart 4.875% 2029 2.82 Barclays Bank 3.58 Italy 2.25% 2013 2.13 Republic of Italy 2.93 CDP* 3.5% 2020 1.78 Wal-Mart 2.82 Germany 2.5% 2014 1.74 Societe Generale 2.70 Barclays 4.75% (T1) 2020 1.60 EDF 2.2547409/EH/LA-J/Citywire Frankfurt 0611 Scottish & Southern 7.756% 2015 1.45 RBS 2.24 Allianz 5.75% 2021 1.42 Telefonica 1.87 Societe Generale 7.756% (T1) 2013 1.37 CDP 1.78 Total Top 10 bond issues 22.89 Total Top 10 bond issuers 31.99 Source: Invesco as at 31 March 2011. *CDP is a wholly owned subsidiary of the Caisse de depot et placement du Quebec and is AAA/AAA. There is no guarantee that the securities mentioned will be held by Invesco funds in the future. 28
  • 29. Invesco Euro Corporate Bond Fund Performance characteristics47409/EH/LA-J/Citywire Frankfurt 0611 Source: Mercer MPA databases from 1 April 2006 to 31 December 2010. Performance figures are for the Invesco Euro Corporate Bond Fund, A share class, and are shown in Euros on a total return basis, and gross of the annual management charge and all other fund expenses. The figures do not reflect the initial (sales) charge paid by individual investors. Past performance is not a guide to future returns. S&P Fund Rating as at February 2011. 29
  • 30. Invesco Euro Corporate Bond Fund Performance characteristics47409/EH/LA-J/Citywire Frankfurt 0611 Source: Mercer MPA databases from 1 April 2006 to 31 December 2010. Performance figures are for the Invesco Euro Corporate Bond Fund, A share class, and are shown in Euros on a total return basis, and gross of the annual management charge and all other fund expenses. The figures do not reflect the initial (sales) charge paid by individual investors. Past performance is not a guide to future returns. S&P Fund Rating as at February 2011. 30
  • 31. Invesco Euro Corporate Bond Fund Performance characteristics • Ranked 1 (of 47) for return • Ranked 1 (of 47) for excess return • High confidence level and tracking error – indicating that historical results were statistically different from the Reference Index • Sharp ratio of 0.8 ranked 4 (of 47) - the higher the Sharpe ratio, the greater the excess return (or Risk Premium) earned per unit of risk47409/EH/LA-J/Citywire Frankfurt 0611 Source: Invesco as at 31 December 2010. Based on Mercer MPA performance characteristic data. S&P Fund Rating as at February 2011. 31
  • 32. Important information This presentation is for Professional Clients only and is not for consumer use. The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Past performance is not a guide to future returns. Where Lewis Aubrey-Johnson has expressed opinions, they are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals. Where securities are mentioned in this document they do not necessarily represent a specific portfolio holding and do not constitute a recommendation to purchase or sell. The IP Corporate Bond Fund, the Invesco Euro Corporate Bond Fund, the IP Monthly Income Plus Fund and the Invesco Pan European High Income Fund invest in bonds and other fixed income securities that are subject to the risk that issuers do not make payments on such securities. The funds may be adversely affected by a decrease in market liquidity which may impair the fund’s ability to acquire or to dispose of securities at their intrinsic value. The Invesco Euro Corporate Bond Fund may invest in high yield bonds which are regarded as being more speculative (than investment grade bonds) as to the issuer’s ability to make payments of principal and interest. The yields shown are expressed as a % per annum of the current NAV of the fund. They are an estimate for the next 12 months, assuming that the fund’s portfolio remains unchanged and there are no defaults or deferrals of coupon payments or capital repayments. Cash income is estimated coupons from bonds. The gross current yield is an indication of the expected cash income over the next 12 months. The estimated gross redemption yield is a longer-term picture indicating expected annual total return. This means that in addition to expected cash income, it includes the amortised annual value of unrealised capital gains or losses of bond holdings currently held by the fund, calculated with reference to their current market price and expected redemption value made upon maturity of the bonds. Neither of the yields is guaranteed. Nor do they reflect the fund charges or the initial charge of the fund. Investors may be subject to tax on distributions. The distribution and the offering of the Invesco Euro Corporate Bond Fund and the Invesco Pan European High Income Fund 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.47409/EH/LA-J/Citywire Frankfurt 0611 Persons interested in acquiring the funds 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. For the purposes of UK law, the funds are recognised schemes under section 264 of the Financial Services & Markets Act 2000. The protections provided by the UK regulatory system, for the protection of retail clients, do not apply to investments in the funds. Compensation under the UK’s Financial Services Compensation Scheme will not be available and UK cancellation rights do not apply to this fund. Further information on our products is available using the contact details shown. Invesco Global Investment Funds Limited and Invesco Fund Managers Limited Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK Website: www.invescointernational.co.uk / www.invescoperpetual.co.uk Authorised and regulated by the Financial Services Authority. 32
  • 33. Important information This document is exclusively for use by professional clients in Continental Europe and is not for consumer use. Data as at 30/04/11, unless otherwise stated. Please do not redistribute this document. 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 Additional information for professional clients in Germany, Austria and Switzerland47409/EH/LA-J/Citywire Frankfurt 0611 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, Stockerstrasse 14, 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. 33