LA Department of Water and Power Invesco International Equity

Annual Presentation October 13, 2010

For one-on-one institutional investor use only. Presentation Team

Michele T. Garren, CFA Douglas J. Gooding, CFA • Portfolio Manager • Head of Client Portfolio Management • Invesco Global Strategies • Invesco Global Strategies • Began investment career in 1987 • Began investment career in 1988 • M.B.A., New York University • B.B.A., University of Texas at Austin • B.B.A., Southern Methodist University • Phone: (404) 892-0896 • Phone: (404) 892-0896 • Email: [email protected] • Email: [email protected] • 1555 Peachtree Street NE • 1555 Peachtree Street NE Atlanta, GA 30309 Atlanta, GA 30309 Michael Bowman • Senior Director • Invesco • Began investment career in 1992 • B.A., University of Texas • Phone: (415) 445-3323 • Email: [email protected] • 101 California Street, Suite 1900 San Francisco, CA 94111 Invesco Investment Capabilities

Source: Invesco. All data as of Aug. 31, 2010, except assets under management data, which is as of June 30, 2010 and investment professional and employee data, which is as of July 27, 2010. Includes U.S. domiciled mutual funds, PowerShares ETFs and ETNs, UITs, subadvised, variable insurance funds, SMAs and money market funds distributed and overseen by Invesco. Invesco PowerShares Capital Management LLC is the sponsor for the PowerShares QQQ, BLDRS and DB products. Invesco Distributors, Inc. and its affiliate, Invesco PowerShares Capital Management LLC, have an agreement with Deutsche Bank to provide certain marketing services for the PowerShares DB products. Neither firm is affiliated with Deutsche Bank. Invesco PowerShares Capital Management LLC is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. ALPS Distributors, Inc. is the distributor of PowerShares QQQ, BLDRS Funds and the PowerShares DB Funds. Invesco Distributors, Inc. is not affiliated with ALPS Distributors, Inc. 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. All entities listed are wholly owned, indirect subsidiaries of Invesco Ltd., except 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 WL Ross. Please consult your Invesco representative for more information. 2 Invesco Global Equity Team

Kirk F. Holland W. Lindsay Davidson Kent A. Starke Michele T. Garren, CFA® Ingrid E. Baker, CFA® Frank J. Crown, CFA® Chief Executive Officer Managing Director, Portfolio Manager Portfolio Manager Head of Emerging Mkt Equities Portfolio Manager 1993 Global Equities 1992 1997 1999 1995 1984

Anuja R. Singha, Ph.D., CFA® Stephen K. Thomas, CFA® E. Sargent McGowan, CFA® Matthew R. Miller, CFA® Jeffrey J. Silverman, CFA® Ben Clark Portfolio Manager, Portfolio Manager Head of Developed Mkt Equities Portfolio Manager Portfolio Manager Portfolio Manager Head of Quantitative Research 2000 2002 2000 2002 2002 1998

Michelle L. Middleton, CFA® Michael P. Vanous, CFA® Jason Kindland, CFA® Shelly W. Flanagin Jennylyn F. Nogaliza Kerri L. Turner Portfolio Manager Portfolio Manager Portfolio Manager Portfolio Implementation Quantitative Analyst Quantitative Analyst 2000 1999 1997 1994 1994 2002

Douglas J. Gooding, CFA® Justin C. Boller, CFA® Carey L. Millikin Nicole A. Gibson Head of Client Portfolio Mgmt. Client Portfolio Manager Product Specialist Product Specialist 2002 1999 1990 1999

As of 08/10. Date shown represents the year the professional started with Invesco. The CFA® designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis. 3 Investment Philosophy

• We believe that a company’s demonstrated financial results are the best indicator of its future prospects.

• The inefficiency of global equity markets routinely provides investment opportunities when these prospects are not fully reflected in stock prices.

• Bottom-up stock selection, combining quantitative analysis and fundamental research, enables us to take advantage of these opportunities over the long-term.

• Risk should be assessed at both the security and portfolio level.

4 Investment Process

• Broad coverage of global equity markets • Incorporates up to 10 years of financial data ValuationValuation RankingRanking • Financial data adjusted for differences in accounting conventions and inflation • Proprietary three factor valuation model utilized to rank universe

• Companies targeted from within most attractive portion of universe • Broad representation across countries, sectors and range of capitalization • Long-term investment horizon FundamentalFundamental ResearchResearch • Assessment of — Key financial characteristics — Peer group positioning — Sustainability of profitability • For emerging market stocks, evaluate macro economic and political backdrop

• Model portfolio approach • Stock selection drives country and sector weights • Typical position size 1 – 3%, maximum holding 5% PortfolioPortfolio DesignDesign • Tracking error utilized to monitor overall portfolio risk • Sell discipline follows stock selection process • Turnover approximately 30% per year

5 International Equity CHARACTERISTICS QUARTER ENDED JUNE 30, 2010 Price/Earnings Price/Book Dividend Yield 30 3 4

25 3 20 2

15 2 Ratio Ratio Percent 10 1 1 5

0 0 0 2005 2007 2009 2Q10 2005200720092Q10 2005200720092Q10 Invesc o MSCI EAFE Invesco MSCI EAFE Invesco MSCI EAFE

5 Year ROE Debt to Capital ex-Financials Weighted Avg. Market Cap 20 40 $80

15 30 $60

10 20 $40 Percent Percent

5 10 $20 US Dollars (billions)

0 0 $0 2005 2007 2009 2Q10 2005 2007 2009 2Q10 2005 2007 2009 2Q10 Invesco MSCI EAFE Invesco MSCI EAFE Invesc o MSCI EAFE

Sources: MSCI Inc. via FactSet Research Systems Inc. and Invesco; all characteristics are calculated by FactSet with data for Debt to Capital ex-Financials based on current period holdings and prior calendar year-end financials. Benchmark: MSCI EAFE (Net) Index. The above information is taken from a representative international equity ex-emerging markets account and is presented for illustrative purposes only. Portfolio characteristics are subject to change. For complete MSCI Inc. disclaimer see page 31.

6 LA Department of Water and Power Retirement Fund PERFORMANCE SUMMARY AS OF AUGUST 31, 2010

Ending Market Value $328,619,902

Portfolio Portfolio Portfolio Portfolio Period (Gross) (Net) Benchmark** Period (Gross) (Net) Benchmark**

3QTD 5.90 5.83 5.95 Trailing Periods Ending August 31, 2010 YTD 2010 -7.96 -8.22 -6.53 1 Year (Since 8/31/09) -0.96 % -1.38 % -0.36 % 2009** 32.43 31.89 35.35 3 Years (Since 8/31/07) -9.02 -9.40 -9.45 2008 -38.75 -39.02 -43.56 5 Years (Since 8/31/05) 2.05 1.63 1.87 2007 8.67 8.21 12.44 Since Inception* 4.65 4.21 5.08 2006 26.24 25.72 25.71 2005 11.00 10.53 14.47 2004* 16.88 16.59 17.94

* Performance Inception: 06/03/04. ** MSCI EAFE + Canada Index changed to MSCI World ex-US IMI on 01/01/09. All trailing periods longer than 1 year are annualized returns. 7 LA Department of Water and Power Retiree Health Benefits Fund PERFORMANCE SUMMARY AS OF AUGUST 31, 2010

Ending Market Value $55,957,565

Portfolio Portfolio Period (Gross) (Net) Benchmark

3QTD 5.61 5.50 5.95 YTD 2010 -8.36 -8.62 -6.53 2009* 5.67 5.52 4.65 Since Inception* -3.17 -3.57 -2.19

* Performance Inception: 09/09/09. All trailing periods longer than 1 year are annualized returns. 8 LA Department of Water and Power Retirement Fund CHANGE IN MARKET VALUE AS OF AUGUST 31, 2010

Asset Growth

Initial Funding 06/03/04$ 270,000,000 Total Contributions - Total Withdrawals $ (30,359,219) Total Investment Change$ 88,979,121

Ending Market Value$ 328,619,902

9 LA Department of Water and Power Retiree Health Benefits Fund CHANGE IN MARKET VALUE AS OF AUGUST 31, 2010

Asset Growth

Initial Funding 09/09/09$ 36,607,332 Total Contributions$ 20,200,000 Total Withdrawals - Total Investment Change$ (849,767)

Ending Market Value$ 55,957,565

10 Performance Analysis SECTOR/GEOGRAPHY ONE YEAR ENDED AUGUST 31, 2010

Sector 12.5 • Global markets led by economically

defensive segments particularly 3.7 2.6 2.6 2.4 consumer staples. 1.1

Total Return % Return Total -5.7 • Emerging markets and commodity- -7.4 -9.7 price sensitive areas like Canada -11.3 also outperform. Energy Utilities Materials Financials Industrials Technology Health Care Information Consumer Discretionary Services Consumer Staples Consumer • Among larger developed markets, Telecommunicaton Europe and Japan trail over the past year. Geography 21.2 18.0

12.2 9.2 6.1 • Focus on Greek debt levels leads to 4.4 3.5 correction in Euro and broader 1.5

European equity markets in early % Return Total -5.9 2010. -6.4 Brazil China Japan UK States United Canada United MSCI EM MSCI Kingdom Europe ex Switzerland MSCI World MSCI

Sources: MSCI Inc. via FactSet Research Systems, Inc., Bloomberg and Invesco. Sector data represents MSCI EAFE Index sector returns. Country and regional returns also reflect MSCI data. Returns in US dollars with net dividends. For complete MSCI Inc. disclosure see page 31.

11 LA Department of Water and Power PERIOD ENDED AUGUST 31, 2010

Top 10 Holdings Sector Weightings

25 Security Country % Portfolio Portfolio MSC I World ex-US IMI

Zurich Financial Services Switzerland 2.8 20 Swisscom AG Switzerland 2.8

Imperial Tobacco Group PLC UK 2.7 15 Fuji Film Holdings Japan 2.5

Royal Dutc h Shell PLC UK 2.4

BHP Billiton LTD Australia 2.3 10

Sanofi-Aventis France 2.1 Total of Percent

Mitsubishi UFJ Financial Corp. Japan 2.0 5 Agrium Inc Canada 2.0

Banco Santander SA Spain 1.9 Total 23.5 % 0 Energy Utilities Telecom Staples Materials Financials Consumer Industrials Technology Information Consumer Health Care Discretionary

Sources: MSCI Inc. via FactSet Research Systems Inc. and Invesco. Portfolio holdings and sector weightings as of 08/31/10. This portfolio is actively managed. Current portfolio holdings may differ and are organized according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. For complete MSCI Inc. disclaimer see page 31. 12 LA Department of Water and Power COUNTRY WEIGHTINGS PERIOD ENDED AUGUST 31, 2010

MSCI World MSCI World Portfolio ex-US IMI Portfolio ex-US IMI Europe Pacific Basin Austria 0.3 0.4 Australia 6.1 7.5 Belgium 0.0 0.9 Hong Kong 4.9 2.4 Denmark 0.0 1.0 Japan 23.7 20.5 Finland 1.0 1.0 New Zealand 0.0 0.1 France 8.4 8.2 Singapore 0.6 1.6 Germany 4.9 6.6 Total Pacific Basin 35.3 % 32.1 % Greece 0.9 0.3 Ireland 0.3 0.3 Canada 9.5 % 10.30 Italy 2.3 2.6 Netherlands 2.8 2.2 Israel 0.0 % 0.8 % Norway 0.9 0.9 Portugal 0.0 0.3 Total Equities 96.9 % - Spain 5.9 3.1 Sweden 0.4 2.7 Cash 3.1 % - Switzerland 8.2 6.9 United Kingdom 15.8 19.4 Total 100.0 % 100.0 % Total Europe 52.1 % 56.8 %

Sources: MSCI Inc. via FactSet Research Systems Inc. and Invesco. Portfolio country weightings as of 08/31/10. Benchmark: MSCI EAFE (Net) Index. This portfolio is actively managed and current portfolio characteristics may differ. For complete MSCI Inc. disclaimer see page 31.

13 LA Department of Water and Power SECURITY HOLDINGS PERIOD ENDED AUGUST 31, 2010 Global Description Portfolio Description Description Portfolio Equity Consumer Discretionary Energy Financials cont'd Bayerisc he Motoren Werke AG (BMW) 1.2 Advantage Oil & Co. 0.2 Helvetia Holdings 0.2 Brembo SpA 0.2 EnCana Corp. 1.0 Henderson Land 1.4 Esprit Holdings 1.4 ENI SPA 1.6 Higashi- Nippon Bank Ltd. 0.2 Forzani Group Ltd 0.3 ERG SpA 0.2 IBJ Leasing Co. Ltd. 0.3 Intralot SA 0.1 Fairborne Energy Ltd. 0.2 Immobiliare Grande Dist. 0.1 Kanto Auto Works Ltd. 0.1 Galleon Energy Inc. 0.2 Intact Financials 1.3 Nissan Motor Co. 1.7 JKX Oil & Gas PLC 0.2 Irish Life & Permanent 0.1 Plastic Omnium 0.3 Nexen Inc 1.1 JACCS Co. Ltd. 0.2 Porsche Automobile 1.4 PA Resources 0.1 Macquarie Group 1.1 Praktiker Bau-und 0.1 Repsol-YPF SA 0.9 Mitsubishi UFJ Financial Corp. 2.0 Rona Inc. 0.2 Royal Dutch Shell PLC 2.4 Muenchener Rueckversicherungs 0.7 Token Corporation 0.2 StatoilHydro ASA 0.7 National Bank of Greece 0.7 Topre Corporation 0.1 Total SA 1.7 Storebrand ASA 0.2 Yamada Denki Co 1.3 Total Energy 10.5 % Toronto- Dominion 1.1 Total Consumer Discretionary 8.6 % Wereldhave NV 0.2 Financials Wihlborgs Fastigheter AB 0.2 Consumer Staples Amlin PLC 0.2 Wing Tai Holdings 0.2 Bonduelle S.C.A. 0.2 Australian & New Zealand Banking 1.4 Zurich Financial Services 2.8 Circle K Sunkus 0.2 Banco Santander 1.9 Total Financials 21.9 % Create SD Holdings Co. Ltd. 0.2 Bank of Saga LTD 0.2 Imperial Tobacco 2.7 Barclays 1.4 Metro Inc 1.0 BNP Paribas 1.2 Seven & I Holdings Co. Ltd. 1.1 Catlin Group LTD 0.2 Unilever NV 1.5 Chauc er Holdings PLC 0.2 Valor Co Ltd 0.2 Cheung Kong Holdings Ltd. 1.1 Total Consumer Staples 7.1 % Crédit Agricole SA 1.1

Please see the following page for important information on security holdings within this portfolio.

14 LA Department of Water and Power SECURITY HOLDINGS PERIOD ENDED AUGUST 31, 2010 Global Description Portfolio Description Description Portfolio Equity

Health Care Industrials cont'd Telecommunication Services Actelion Ltd. 1.1 Tat Hong Holdings 0.1 Nippon Telephone & Telegraph Corp. 1.1 Astrazeneca PLC 1.4 TNT NV 1.2 NTT Docomo Inc. 1.1 GlaxoSmithKline PLC 1.7 Total Industrials 9.9 % Swisscom AG 2.8 Recordati SpA 0.2 Telefonica SA 1.5 Sanofi-Aventis 2.1 Information Technology Telstra Corp 1.3 Takeda Pharmaceutical Co. Ltd. 1.5 Aastra Technology 0.2 Vodafone Group PLC 1.4 Torii Pharmac eutic al Co. 0.2 ALTEN 0.2 Total Telecommunic ation Servic es 9.2 % United Drug PLC 0.2 Canon Inc. 1.3 Total Health Care 8.4 % Eizo Nanao Corp. 0.2 Utilities Fuji Film Holdings Corp 2.5 Atco Ltd. 0.2 Industrials Murata Manufac turing Co. Ltd. 1.2 Iberdrola SA 1.5 Bando Chemical 0.2 Nokia Oyj. 1.0 International Power 1.7 Bouygues 1.5 Venture Corp. Ltd. 0.2 National Grid Transco 1.4 Cape PLC 0.2 Total Information Technology 6.8 % Okinawa Electric Power Co. 0.2 Davis Servic e Group PLC 0.2 Total Utilities 5.0 % East Japan Railway 1.1 Materials Flughafen Wien AG 0.3 Agrium Inc. 2.0 Hutchison Whampoa Ltd. 1.0 Aurubis AG 0.2 Total Equities 96.9 % JFE Shoji Holdings Inc . 0.2 BHP Billiton Ltd. 2.3 Kloeckner & Co. SE 0.1 Godo Steel Ltd. 0.2 Cash 3.1 % Mitsubishi Corp. 0.8 Harry Winston 0.3 Morgan Sindall PLC 0.2 Holcim Ltd. 1.4 National Express 0.2 Hudbay Minerals 0.3 Total Portfolio 100.0 % Nippon Densetsu 0.2 Salzgitter AG 0.9 Nippon Yusen KK 1.8 Sidenor Steel 0.1 Shinwa Kaiun Kaisha Ltd. 0.2 Sumitomo Chemical 1.8 Sixt AG 0.2 Total Materials 9.5 % Stolt-Nielsen SA 0.2

Sources: Portia and Invesco. Portfolio holdings as of 08/31/10. This complete list of portfolio holdings is actively managed and current portfolio holdings may differ. It should not be assumed that any of the holdings discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities or holdings discussed herein. 15 LA Department of Water and Power REGIONAL ATTRIBUTION YEAR TO DATE THROUGH AUGUST 31, 2010

MSCI World ex-US IMI LADWP Percent of Rate of Percent of Rate of Return Active Benchmark Return MarketsPortfolio (Gross) Contribution

38.68 % -12.42 % Europe 37.68 % -15.57 % -1.24 % 20.68 -0.89 Japan 22.62 1.72 0.60 19.11 -4.86 United Kingdom 17.64 -4.85 -0.23 21.54 -1.90 Other Developed 19.20 -3.75 -0.61 0.00 0.00 Cash 2.86 -0.60 0.05 100.00 % Total 100.00 % -1.43

Sources: MSCI Inc. via FactSet Research Systems Inc. and Invesco. Currency: US dollar. Note: Benchmark returns are based on FactSet’s calculations utilizing MSCI Inc. constituents with daily dividend reinvestment. The above performance is gross of investment fees.

16 LA Department of Water and Power SECTOR ATTRIBUTION YEAR TO DATE THROUGH AUGUST 31, 2010

MSCI World ex-US IMI LADWP Percent of Rate of Percent of Rate of Return Active Benchmark Return Sectors Portfolio (Gross) Contribution

10.25 % -2.13 % Consumer Discretionary 8.29 % -10.73 % -0.86 %

9.02 -0.11 Consumer Staples 7.30 -4.78 -0.46

9.39 -15.09 Energy 12.03 -21.12 -1.05 25.05 -9.08 Financials 20.48 -11.06 -0.22

7.38 -7.17 Health Care 7.76 -4.54 0.27

12.61 -2.59 Industrials 11.17 -2.34 -0.01

5.38 -7.26 Information Technology 7.76 -6.64 0.21

11.32 -6.53 Materials 9.87 -11.38 -0.46

4.80 -1.60 Telecommunication Services 7.76 5.75 0.83

4.79 -9.55 Utilities 4.73 -4.45 0.30

0.00 0.00 Cash 2.86 1.50 0.03

100.00 % Total 100.00 % -1.43

17 LA Department of Water and Power CONTRIBUTION TO PERFORMANCE YEAR TO DATE THROUGH AUGUST 31, 2010

Top Contributors

Stock Sector Total Return Contribution to Return

BMW AG Consumer Disc 49.92 % 0.51 % Zurich Financial Services AG Financials 14.82 0.49 Agrium Inc. Materials 23.39 0.46 International Power PLC Utilities 26.44 0.44 Telefonica S.A. Telecom 28.66 0.36 Intact Financial Corp. Financials 22.23 0.34 Swisscom AG Telecom 10.86 0.34 Nippon Yusen K.K. Industrials 32.22 0.33 BNP Paribas S.A. Financials 15.90 0.27 AstraZeneca PLC Health Care 18.02 0.26

18 LA Department of Water and Power CONTRIBUTION TO PERFORMANCE YEAR TO DATE THROUGH AUGUST 31, 2010

Bottom Contributors

Stock Sector Total Return Contribution to Return

National Bank of Greece S.A. Financials -55.43 % -0.75 % BP PLC Energy -36.26 -0.73 Societe Generale S.A. (France) Financials -34.58 -0.43 Porsche Automobil Holding SE Consumer Disc -21.46 -0.39 Macquarie Group Ltd. Financials -20.06 -0.39 Total S.A. ADS Energy -18.00 -0.37 Banco Santander S.A. Financials -19.31 -0.37 Nexen Inc. Energy -23.36 -0.37 Salzgitter AG Materials -27.42 -0.36 Esprit Holdings Ltd. Consumer Disc -17.38 -0.33

19 LA Department of Water and Power BARRA ANALYSIS

Benchmark MSCI World ex-US IMI Tracking Error 2.85 R-squared 0.99

Variance Standard Deviation (%) 1 Asset Selection 4.53 2.13 2Risk Indices 1.55 1.24 3 Industries 0.35 0.59 4 Country 0.99 0.99 5 Currency 1.27 1.13 6 World Equity 0.47 0.69 7 Covariance * 2 -1.02 N/A 8 Total Common Factor 4.63 9Active 8.13 2.85 10 Benchmark 644.30 25.38 11 Total 601.10 24.52

Source: BARRA. Benchmark: MSCI World ex US IMI. Analysis as of 08/31/10. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This is not to be construed as an offer to buy or sell any financial instruments and should not be relied upon as the sole investment making decision. This does not constitute a recommendation of the suitability of any investment strategy for a particular investor. It is not our intention to state, indicate or imply in any manner that current or past results are an indication of future profitability or expectations. As with all investments there are associated inherent risks. Please obtain and review all financial material carefully before investing. Portfolio characteristics are subject to change. For complete MSCI Inc. disclaimer see page 31.

20 LA Department of Water and Power Fee Schedule

• Fee Rate: — The CONTRACTOR fee shall be the sum of the following: • 42 basis points or.42% flat fee

21 LA Department of Water and Power Investment Guideline and Objective Summary

The Plan has appointed Manager(s) to manage a portion of the Plan’s assets. These assets will be managed in conformance with the objectives and guidelines delineated below and in accordance with the formal contract with the Retirement Board. Portfolio Guidelines • The portfolio shall be composed of cash equivalents and equity securities of companies doing business outside the United States with minimum market capitalization of $200 million. Equity securities shall be restricted to those issues listed on the major local-country stock exchanges. The markets that the Manager can invest in are those within the following index: • Morgan Stanley-Capital World ex-U.S. Equity Investable Market Index (MSCI World ex-U.S. Equity IMI) Investing in Emerging Markets is prohibited. Emerging markets shall be defined as those countries included in the MSCI Emerging Markets Investable Market Index. • The Manager shall not use (non-currency) derivatives within the portfolio without the expressed written consent of the plan. If Manager elects to use derivatives as part of its investment strategy, the Plan requires that the manager document the rationale for using such instruments. The Manager shall not invest in letter or restricted stock, naked options or future contracts, and uncovered short positions or commodities. Use of any derivative instrument for speculation is prohibited. • Currency hedging up to a maximum of 25% of the portfolio is permitted for defensive purposes. Currency hedging shall be effected through the use of forward currency contracts. • For prudent diversification the portfolio shall have a minimum of 30 issues quoted in at least 10 stock markets, although assets will not be specifically allocated to individual countries or markets. No more than 5% of the portfolio at the lesser of cost or market value shall be invested in any one issue. In addition, no issue shall be purchased in the Portfolio if more than 10% of the outstanding shares of that company are held by the Manager in the total of all of its accounts. • The cash portion should not normally exceed 10% of the portfolio. Cash equivalents may be U.S. dollar or non-U.S. dollar denominated.

22 LA Department of Water and Power Investment Guideline and Objective Summary

Portfolio Characteristics • It is expected that the portfolio will invest across a broad array of countries within the MSCI World ex-U.S. Equity IMI Index. Regional and country weights, however, may vary significantly from the index. • It is expected that the portfolio’s weighted average price/ earnings ratio on a trailing 12-month basis in general will be within a +/- 0.5x range of the market as represented by MSCI World ex-U.S. Equity IMI Index. • It is expected that the portfolio’s weighted average dividend yield in general will be within a +/- 0.5x range of the market as represented by the MSCI World ex-U.S. Equity IMI Index. • The portfolio’s market sensitivity (beta) in general will be no less than 0.80 and no greater than 1.30 of the market as represented by the MSCI World ex-U.S. Equity IMI Index on a 24-month rolling basis, using monthly holdings data. Performance Objectives • On an annual basis the Manager is expected to outperform the MSCI World ex-U.S. net dividends IMI return, net of fees, to be measured over a market cycle of three-to-five years.

23 Invesco Global Equity INVESTMENT COMMITTEES

Developed Markets Emerging Markets

Frank Crown, CFA® Ingrid Baker, CFA®*

Lindsay Davidson Michele Garren, CFA®

Michele Garren, CFA® Michelle Middleton, CFA®

Sargent McGowan, CFA®* Matthew Miller, CFA®

Matthew Miller, CFA® Anuja Singha, Ph.D., CFA®

Kent Starke

Stephen Thomas, CFA®

*Committee Chair. As of 08/10. The CFA® designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.

24 Invesco Global Equity Team RESEARCH ASSIGNMENTS

Developed Markets Portfolio Manager Region/Country Assignment Sector Assignment

Ingrid E. Baker, CFA ® Latin America, China, South Korea

Ben Clark Utilities

Frank J. Crown, CFA® Financials

Michele T. Garren, CFA® Eastern Europe (ex-Russia), Middle East Financials

E. Sargent McGowan, CFA® Industrials

Michelle L. Middleton, CFA® Russia, South Africa

Matthew R. Miller, CFA® Taiwan Telecom, Media, Technology

Jeff Silverman, CFA® Health Care

Anuja R. Singha, Ph.D., CFA® India, Southeast Asia Consumer Staples

Kent A. Starke Basic Materials, Energy

Stephen K. Thomas, CFA® Japan Consumer Durables

As of 08/31/10. The CFA® designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis. 25 Investment Team Biographies

In the Industry With the Firm Team Member Title/Responsibility Since Since Education W. Lindsay Davidson Managing Director, 1974 1984 Edinburgh University, M.A. Global Equities

Kent A. Starke Portfolio Manager 1983 1992 University of Georgia, B.B.A. Basic Materials, Energy Georgia State University, M.S.

Michele T. Garren, CFA Portfolio Manager 1987 1997 Southern Methodist University, Financials B.B.A. Eastern Europe (ex-Russia) New York University, M.B.A. Middle East

Ingrid E. Baker, CFA Head of Emerging Mkt Equities 1990 1999 Oberlin College, B.A. Latin America, China, IESE Business School, University of South Korea Navarra, Spain, M.B.A.

Frank J. Crown, CFA Portfolio Manager 1995 1995 Georgia State University, B.B.A. Financials

Anuja R. Singha, Ph.D., CFA Portfolio Manager, 1998 1998 Mills College, B.A. Head of Quantitative Research Emory University, Ph.D. Consumer Staples India, Southeast Asia

As of 08/10. The CFA® designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.

26 Investment Team Biographies

In the Industry With the Firm Team Member Title/Responsibility Since Since Education Stephen K. Thomas, CFA Portfolio Manager 1997 2000 University of Mississippi, B.B.A. Consumer Durables University of Mississippi, M.B.A. Japan

E. Sargent McGowan, CFA Head of Developed Mkt Equities 1996 2002 University of Virginia, B.S. Industrials University of North Carolina, M.B.A.

Matthew R. Miller, CFA Portfolio Manager 2000 2000 Emory University, B.A. Telecom, Media, Tech Taiwan

Jeffrey J. Silverman, CFA Portfolio Manager 1993 2002 Binghamton University, B.S. Healthcare Rutgers University, M.B.A.

Ben Clark Portfolio Manager 1996 2002 Morehouse College, B.A. Utilities Wharton School of the University of Pennsylvania, M.B.A.

Michelle L. Middleton, CFA Portfolio Manager 2000 2000 Georgia State University, B.B.A. Russia, South Africa Georgia State University, M.S.

27 Investment Team Biographies

In the Industry With the Firm Team Member Title/Responsibility Since Since Education Michael P. Vanous, CFA Portfolio Manager 1986 1999 Georgia State University, B.B.A. Georgia State University, M.B.A.

Jason Kindland, CFA Portfolio Manager 1997 1997 Georgia Institute of Technology, B.M.E. Emory University, M.B.A.

Shelly W. Flanagin Portfolio Implementation 1994 1994 Kennesaw State University, B.A.

28 Representative Global Equity Client List

Public Corporate Jointly Trusteed Arlington County ERS American Medical Association Boston Plasterers and Cement Masons City of Lansing ERS AT&T Local #534 City of Miami GESE Catholic Healthcare West Central Iowa Carpenters City of Oakland Park Firefighters & Police Dow Chemical Communications Workers Local #1109 Falmouth Contributory Retirement El Paso Corporation IBEW Local #654 Haverhill Contributory Retirement Hunterdon Medical Center Local #1482 Painters & Allied Products Los Angeles Dept. of Water & Power Northern Trust Global Advisors Longshoremen, Waterfront Employers Maryland State Retirement Scandinavian Airlines of N.A., Inc. ILA Pension & Welfare Massachusetts Housing Finance Agency Southern Company Metropolitan Atlanta Rapid Transit Medford Contributory Retirement Union Carbide Authority (MARTA)/ ATU Local #732 Minnesota State Board of Investment Verizon Investment Corporation New Jersey Building Laborers Missouri Local Government ERS Westinghouse Electric Company New Orleans ILA, AFL-CIO Public Education ERS of Missouri Workers’ Comp. Reinsurance Assn Ohio Bricklayers Public School RS of Missouri Pipe Trades District Council #36 Puerto Rico Commonwealth Rhode Island Carpenters Other Gov’t Employees & Judiciary Retirement Roofers’ Local #149 Puerto Rico State Insurance Fund American Cancer Society United Brotherhood of Carpenters and Puerto Rico Teachers Retirement Archdiocese of Seattle Joiners of America, Local Union #370 Quincy Contributory Retirement Catholic Diocese of St. Petersburg Sacramento County ERS Diocese of Orlando St. Petersburg Firefighters Georgia Power Foundation State of Connecticut Idylwood Partners I, L.P. State of North Carolina Lifeway Christian Resources Utah Retirement Systems Recording for Blind and Dyslexic, Inc. Webster Contributory Retirement Sisters of Mercy of the Americas, West

This is a list of Invesco’s Global Equity clients which excludes commingled funds, mutual funds, managed account programs, sub-advisor accounts, individuals and clients that have requested anonymity. This list is not based on criteria that pertains to investment performance and is as of 06/10. It is not known whether the clients listed here approve or disapprove of Invesco or the investment advisory services provided.

29 Invesco International Equity (EAFE) Composite

Period Invesco MSCI EAFE Period Invesco MSCI EAFE

YTD 2010 -7.73 % -7.95 % Trailing Periods Ended August 31, 2010 2Q 2010 -14.78 -13.97 1 Year 0.28 % -2.34 % 2009 35.66 31.78 3 Years -8.53 -10.75 2008 -39.79 -43.38 5 Years 2.52 0.96 2007 9.78 11.17 10 Years 3.22 1.10 2006 26.19 26.34 Since Ince ption* 7.65 4.15 2005 11.86 13.54 2004 21.66 20.25 2003 31.90 38.59 2002 -10.07 -15.94 2001 -14.19 -21.44 2000 -8.90 -14.17 1999 27.08 26.96 1998 13.26 20.00 1997 15.62 1.78 1996 22.52 6.05 1995 18.13 11.21

*Product inception: 01/01/95. Sources: MSCI Inc. via FactSet Research Systems Inc. and Invesco. Currency: US dollar. The performance shown is gross of fees and does not reflect the deduction of investment advisory fees and is supplemental to the GIPS® performance disclosure. Returns shown for this composite would be lower when reduced by the advisory fees and any other expenses which may be incurred in the management of an investment advisory account. Past performance does not guarantee future results. For complete MSCI Inc. disclosure see page 31. See pages 32-33 for complete net of fee performance and GIPS® disclosures.

30 Invesco Disclaimers MSCI Disclaimer: Source: MSCI Inc. Neither MSCI Inc. nor any other party involved in or related to compiling, computing or creating the MSCI Inc. data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI Inc., any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI Inc. data is permitted without MSCI Inc.’s express written consent.

GICS Holdings Disclaimer: The portfolio holdings are organized according to the Global Industry Classification Standard (GICS), which was developed by and is the exclusive property and service mark of MSCI Inc. and Standard & Poor's.

Confidentiality Notice: This publication may contain certain confidential and proprietary information of Invesco including descriptions of investments, models and methodologies, and data reflecting the analysis and strategies employed by Invesco. Unauthorized reproduction or distribution of these materials to other persons is prohibited. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This is not to be construed as an offer to buy or sell any financial instruments. As with all investments there are associated inherent risks. Please obtain and review all financial material carefully before investing. Past performance is not a guarantee of future results.

31 Invesco International Equity (EAFE) Composite GIPS® COMPLIANT SCHEDULE OF INVESTMENT PERFORMANCE

Composite Total Firm Gross Rate Net Rate MSCI Number of Assets Assets Composite Period of Return of Return EAFE Portfolios (Millions) (Billions) Dispersion

2009 35.66 % 34.58 % 31.78 % 11 $ 3,035 $ 298.2 2.24 % 2008 -39.79 -40.26 -43.38 12 2,492 254.6 0.49 2007 9.78 8.91 11.17 16 4,823 328.6 0.74 2006 26.20 25.20 26.34 18 5,167 243.8 0.49 2005 11.86 10.97 13.54 29 6,838 174.6 0.38 2004 21.66 20.70 20.25 42 8,213 168.0 0.28 2003 31.90 30.85 38.59 45 7,865 161.4 0.38 2002 -10.07 -10.79 -15.94 38 4,933 9.3 0.56 2001 -14.19 -14.87 -21.44 40 3,828 8.8 0.63 2000 -8.90 -9.62 -14.17 43 4,102 10.4 1.17 1999 27.08 26.07 26.96 64 3,945 9.5 2.17 1998 13.26 12.36 20.00 48 1,655 5.8 1.20 1997 15.62 14.70 1.78 25 766 4.0 1.33 1996 22.52 21.55 6.05 12 433 2.0 1.18 1995 18.13 17.19 11.21 8 327 1.0 1.23

Annual Compound Rates of Return Ended December 31, 2009

1 Year 35.66 % 34.58 % 31.78 % 3 Years -3.57 -4.33 -6.04 5 Years 4.83 4.00 3.54 10 Years 3.63 2.80 1.17 Since Inception* 8.58 7.72 4.92

*Product inception: 12/31/94. Currency: US dollar. See following page for complete performance GIPS® disclosure.

32 Invesco International Equity (EAFE) Composite GIPS® COMPLIANT PERFORMANCE NOTES Invesco Worldwide has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®). Notes: 1 Invesco Worldwide(“The Firm”) manages a broad array of investment strategies around the world. The Firm comprises all Invesco firms outside of North America, combined with two major Invesco firms within the United States, Invesco Institutional (N.A), Inc. (“IINA”), and Invesco Global Asset Management (N.A.), Inc. (“IGNA”). The Firm was incepted on 1st January 2003. For periods prior to 1st January 2006, the Firm excluded the managed account businesses within IINA and IGNA. From that date forward, these portfolios are included within the Firm definition. During 2006, the Firm completed a project to bring its stable value portfolios into compliance retroactively effective from 1st January 2001. During 2007, the Firm incorporated the fixed income business of Invesco Aim, an affiliate of IINA and IGNA, into its operating structure and currently includes this business, with the exception of the fixed income portion of balanced accounts managed by Invesco Aim, which are excluded from firm assets, within its Firm definition. Historic assets under management prior to 2006 and 2007, respectively, have not been restated to reflect these extensions of the Firm definition. IINA and IGNA were verified from 1st January 2001 and 1st January 1995, respectively. The ex-North America Invesco firms (previously defined separately for performance reporting purposes as “Invesco Global”) were verified from 1st January 1997. All verifications have been completed through 31 December 2008. Composite history and Firm assets prior to 1st January 2003 are those of its respective components. All entities within the Firm are directly or indirectly owned by Invesco Ltd. GIPS compliant firms whose assets are managed by subsidiaries of Invesco Ltd. are Invesco Worldwide, Invesco Aim Private Asset Management, Inc., Invesco Trimark Ltd., Invesco Aim U.S., and Atlantic Trust. Invesco Senior Secured Management, Inc. and Invesco Private Capital, Inc. are affiliates of the Firm. Each is an SEC registered investment adviser and is marketed as a separate entity. Their assets are excluded from total Firm assets. 2 The International Equity product targets to add value by focusing primarily on stock selection in the global equity markets that is driven by precise financial, valuation and global sector- based research criteria. We are committed to a long-term investment horizon based on low rates of portfolio turnover. Risk management efforts are employed at the stock and portfolio level to seek predictable and consistent returns relative the benchmark over time. 3 The Composite returns are benchmarked to the MSCI Europe Australasia Far East (Net) Index. The benchmark is used for comparative purposes only and generally reflects the risk or investment style of the product. Investments made by the Firm for the portfolios it manages according to respective strategies may differ significantly in terms of security holdings, industry weightings, and asset allocation from those of the benchmark. Accordingly, investment results and volatility will differ from those of the benchmark. 4 Valuations and portfolio total returns are computed and stated in U.S. Dollars. The firm consistently values all portfolios each day on a trade date basis. Portfolio level returns are calculated as time-weighted total returns on daily basis. Accrual accounting is used for all interest and dividend income. Past performance is not an indication of future results. 5 Composite dispersion is measured by the standard deviation across asset-weighted portfolio returns represented within the composite for the full year. 6 Gross-of-fee performance results are presented before management and custodial fees but after all trading commissions and withholding taxes on dividends, interest and capital gains, when applicable. Net-of-fee performance results are calculated by subtracting the highest tier of our published fee schedule for the product from the monthly returns.

The management fee schedule is as follows: 80 basis points on the first $25 million 60 basis points on the next $75 million 50 basis points thereafter.

7 The minimum portfolio size for the Composite is $20,000,000. 8 As of May 1, 2009, the Invesco International Equity Composite has been renamed the Invesco International Equity (EAFE) Composite. 9 The composite creation date is January 1, 1995. 10 Foreign currency exchange rates for calculation of the benchmark are based on the WM/Reuters Closing Spot Rates TM that are fixed at approximately 4:00 p.m. London time. The compositetaxes deducted calculations from the are individual based on portfolios exchange in rates the utilizicomposite.ng a 4:00 Withholding p.m. New taxesYork, deducted 9:00 p.m. from London portfolios time price. in the composite may vary depending on domicile of the individual clients. 1112 TheA complete benchmark list andis net description of withholding of Firm tax composites based the maximum and performance tax rate resultsapplicable is avai to lableinstitutional upon request. investors. Additional The composite informatio returnsn regarding are net ofpolicies withholding for calculating taxes based and onreporting actual withholdingreturns is available upon request. 13 At the close of business on December 31, 2009, Invesco Ltd. completed the merger of Invesco Aim Advisors, Inc., Invesco Global Asset Management (N.A.), Inc., Invesco AIM Capital Management, Inc., and Invesco Aim Private Asset Management, Inc. into Invesco Institutional (N.A.), Inc. which was renamed Invesco Advisers, Inc. Total firm assets as of 12/31/2009 do not reflect this merger. 14 On June 1, 2010, Invesco acquired Morgan Stanley's retail asset management business, including Van Kampen Investments. Through this transaction, Invesco acquired approximately $119 billion in assets under management including mutual funds and separate accounts. These assets were previously part of the Morgan Stanley GIPS firm and will now be part of the respective Invesco GIPS firms. Morgan Stanley was GIPS verified by Ernst & Young through December 31, 2008.

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