Delivering value to clients and shareholders Martin L. Flanagan - - PowerPoint PPT Presentation

Delivering value to clients and shareholders

Martin L. Flanagan

President and CEO February 11, 2011

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Forw ard-looking statem ents

This presentation, and comments made in the associated presentation today, may include “forward-looking statements.” Forward-looking statements include information concerning future results of our operations, expenses, earnings, liquidity, cash flow and capital expenditures, industry or market conditions, AUM, acquisitions, debt and our ability to obtain additional financing or make payments, regulatory developments, demand for and pricing of our products and other aspects of our business or general economic conditions. In addition, words such as “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “projects,” “forecasts,” and future or conditional verbs such as “will,” “may,” “could,” “should,” and “would” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. There can be no assurance that actual results will not differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in

• ur most recent Form 10-K and subsequent Forms 10-Q, filed with the Securities and

Exchange Commission. You may obtain these reports from the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update the information in any public disclosure if any forward-looking statement later turns out to be inaccurate.

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Discussion topics Delivering value through our multi-year focus on strategy Winning in the global marketplace Questions Appendix

3

Our global resources include:

• $616.5 billion in assets under management around the globe
• Specialized investment teams managing investments across a wide range of

asset classes and investment styles

• More than 600 investment professionals and more than 5,000 employees

worldwide

• Local client support in more than 20 countries, serving clients in more than 100

countries

Our clients benefit from our:

• Commitment to investment excellence
• Depth of investment capabilities
• Organizational strength

I nvesco: W ho w e are

A leading independent global investment manager

Source: I nvesco. I nvestment professional and employee data as of 12/ 31/ 2010. Invesco Ltd. AUM is as of 12/ 31/ 2010 and includes all assets under advisement, distributed and overseen by Invesco Distributors, Inc. and its affiliate Invesco PowerShares Capital Management LLC which has an agreement with Deutsche Bank to provide certain marketing services for the PowerShares DB products. I nvesco PowerShares Capital Management LLC is the sponsor for the PowerShares QQQ and BLDRS products, unit investment trusts. ALPS Distributors, I nc. is the distributor

• f PowerShares QQQ, BLDRS Funds and the PowerShares DB Funds. I nvesco PowerShares Capital Management LLC and I nvesco Distributors,
• Inc. are wholly-owned, indirect subsidiaries of I nvesco Ltd. I nvesco Distributors, I nc. is the U.S. distributor for I nvesco Ltd.’s retail products.

I nvesco Ltd. is not affiliated with ALPS Distributors, I nc. or Deutsche Bank.

4

I nvesco strategic priorities are focused on client success

The markets are global and so is our company Deliver our investm ent capabilities anyw here in the w orld to m eet client needs Achieve strong investm ent perform ance Perpetuate a high- perform ance organization Harness the pow er of our global operating platform

Take advantage of

• ur w orld of opportunity

as a prem ier global investm ent m anagem ent firm 1 2 3 4

5

Com m itm ent to investm ent excellence

1

Achieve strong investment performance

High-quality results begin w ith specialized insight and disciplined

• versight.

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

• wned, 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 WL Ross & Co. Please consult your Invesco representative for more information.

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Perform ance m easurem ent and risk assessm ent

• Independent risk

management controls and processes are in place within each investment team and across Invesco.

• Investment performance

reporting and risk management drive transparency throughout the organization.

• Institutionalized oversight

seeks to ensure quality: – Investment team CIOs. – Executive management. – Fund Boards. – Invesco Ltd. Board. I nvestm ent-centric culture

High-quality results begin w ith specialized insight and disciplined oversight. We believe the best investment insights come from specialized investment teams with discrete investment perspectives, operating under a disciplined philosophy and process with strong risk oversight and quality controls.

• Each discrete investment

team has a clearly articulated investment philosophy and process, aligned with client expectations.

• Tested strategies have

been developed through experience of deep investment teams through multiple market cycles.

• CIOs have clearly defined

accountability to manage investment disciplines and develop talent. Disciplined, repeatable investm ent philosophies and processes

All data as of Dec. 31, 2010

• Invesco has more than 600

investment professionals around the globe.

• Investment teams have access

to advanced investment technology, proprietary tools and platforms.

• Client support and

administrative platforms provide scale and best practices, minimizing non- investment distractions.

• Competitive rewards system

aligns pay with investment performance and recognizes talent.

Com m itm ent to investm ent excellence

1

Achieve strong investment performance

7 SYM-FLANAGAN-PPT-1I 9.10 invesco.com

FOR U.S. I NSTITUTIONAL I NVESTOR USE ONLY — NOT FOR USE WITH THE PUBLI C

Board of Directors and I ndependent Fund Boards Executive Managem ent Team Global Perform ance Measurem ent and Risk

• Facilitates investment oversight function
• Independently reviews investment

execution and process application

• Monitors consistency of investment

results with mandates, market environments, client and CIO expectations

• 50 professionals

Com pliance and I nternal Audit

Facilitate and monitor internal control at all levels I nvestm ent Credit/ Asset/ Liability Financial Operational Business

Risk Areas of Focus I nvestm ent Risk Managem ent Managing our core risks through the Investment Centers Business/ Operational Risk Managem ent Managing all other risks in the business

Risk Managem ent Facilitation Risk Managem ent Em bedded in the Business I nternal Control Risk Oversight and Governance

Corporate Risk Managem ent Com m ittee

• Timely and consistent identification,

evaluation, and mitigation of operational and business risk

• Senior executives from all major business

functions including:

– Investment management/ trading – Product management – Administration – Portfolio operations – Legal and compliance – Finance and internal audit

Com m itm ent to investm ent excellence

Invesco’s enterprise risk governance framework

1

Achieve strong investment performance

8

A m ulti-year focus has driven strong investm ent perform ance

Aggregate performance analysis – asset-weighted

52% 48% 32% 68%

1 -Year 3 -Year

% Assets top half of peer group % Assets bottom half of peer group

% Assets in Top Half of Peer Group

78% 22%

5 -Year

38% 62% 53% 47%

1 -Year 3 -Year

63% 37%

5 -Year 2 0 0 5 2 0 1 0

1

Achieve strong investment performance

Includes AUM of $379.6 billion (62% of total IVZ) for 1 year, $375.1 billion (61% of total IVZ) for three year, and $361 billion (59% of total IVZ) for 5 year. Peer group rankings are sourced from a widely-used third party ranking agency in each fund’s market (Lipper, Morningstar, Russell, Mercer, eVestment Alliance, SITCA) and asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and prior month-end for Australian retail funds due to their late release by third parties. Rankings for the most representative fund in each GIPS composite are applied to all products within each GIPS composite. Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary direct real estate, unit investment trusts and CDOs. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor’s experience.

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• Market cap
• Investment style
• Global/ regional/

single country

• Developed/

emerging

• Sector
• Quantitative
• Directional long/ short

(130/ 30)

• Active balanced
• Global macro
• Risk parity (risk

premia capture)

• Target maturity
• Target risk
• Traditional balanced
• Duration
• Quality
• Sector
• Global/ regional
• Developed/

emerging

• Taxability
• Municipals

– Investment grade – High yield – State specific

• Absolute return

– Market neutral – Multistrategy

• Private equity

– Fund of funds – Buyout, emerging

• Capital protection

(Europe/ Australia)

• Commodities
• Financial structures

– Bank loans – Credit arbitrage – Opportunistic

• Real estate

– Public real estate

securities

– Private direct – U.S., Asian,

European, global Variable insurance funds Separately managed accounts/ unified managed accounts Sub- advised Private placements Exchange-traded funds (ETFs) Mutual funds (open/ closed end,

• n/ offshore)

Collective trusts Institutional separate accounts

Fixed I ncom e and Money Market Our w ide range of investm ent capabilities is designed to support a variety of financial

• bjectives. We offer a wide range of single-country, regional and global capabilities across major

equity, fixed income and alternative asset classes, delivered through a diverse set of investment vehicles.

Unit investment trusts (UITs)

A w ide range of investm ent capabilities

Equity Alternative

AUM: $ 2 9 9 .1 B AUM: $ 1 9 5 .2 B AUM: $ 7 8 .7 B

Customized solutions

Asset Allocation

AUM: $ 4 3 .5 B

Delivered to investors through diverse investm ent vehicles

Depth of investm ent capabilities

2

Deliver investment capabilities to clients anywhere in the world

Source: I nvesco. I nvestment professional and employee data as of 12/ 31/ 2010. Invesco Ltd. AUM is as of 12/ 31/ 2010 and includes all assets under advisement, distributed and overseen by Invesco Distributors, Inc. and its affiliate Invesco PowerShares Capital Management LLC which has an agreement with Deutsche Bank to provide certain marketing services for the PowerShares DB products. I nvesco PowerShares Capital Management LLC is the sponsor for the PowerShares QQQ and BLDRS products, unit investment trusts. ALPS Distributors, I nc. is the distributor

• f PowerShares QQQ, BLDRS Funds and the PowerShares DB Funds. I nvesco PowerShares Capital Management LLC and I nvesco Distributors,
• Inc. are wholly-owned, indirect subsidiaries of I nvesco Ltd. I nvesco Distributors, I nc. is the U.S. distributor for I nvesco Ltd.’s retail products.

I nvesco Ltd. is not affiliated with ALPS Distributors, I nc. or Deutsche Bank.

1 0

W e are achieving strong flow s in nearly every part of our global business

• 10
• 8
• 6
• 4
• 2

2 4 6 8 10 12

2008 2009 2010

*Asia Pacific flows exclude the 2Q10 inflow ($15.8bn) and 4Q10 outflow ($18.6bn) from the previously disclosed passive mandate sourced in Japan

US Continental Europe Asia Pacific UK/ Middle East Canada

( 8 .5 ) ( 6 .4 ) ( 5 .7 ) ( 6 .7 ) 7 .0 1 0 .9 1 0 .4 ( 0 .9 ) ( 0 .4 ) ( 3 .4 ) ( 4 .7 ) 5 .3 2 .1 3 .4 2 .2 ($,bn) *

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Deliver investment capabilities to clients anywhere in the world

1 1

The pow er of a unified operations approach

Equity trading & com pliance Settlem ent & m atching Data m anagem ent Reconciliations Portfolio accounting FA – fund valuation

I nstitutional & factsheet reporting

3

Harness the power of our global operating platform

US Institu- tional US Retail Canada UK Cross- Border CE AP 2 0 0 5 2 0 1 1 Common, scalable, global processes and platforms

M/ M # 1 M/ M # 1 M/ M # 1 Merrin/ MacGregor # 4

Single equity trading platform

Om geo Tradesuite Portia P/ A Mercator

Global settlements standardization

Portia Manual/ I DD

Single security master

Sm artstream FMC Recon

Single reconciliation system

Portia FMC

Single portfolio accounting system*

PAS MPow er FMC TPAs

PAS/ TPAs*

Manual Manual CRS Morningstar Manual

Global Client Communication Platform

* Transition still in progress.

1 2

The pow er of a unified operations approach

See the schedule of Non-GAAP information in the appendix of this presentation for a reconciliation of net revenues, adjusted operating income, and adjusted EPS to the most directly comparable U.S. GAAP financial measure.

44.8 38.2 35.2 35.5 34.1 32.0

I nvesco Ltd. adjusted operating expense per average assets (basis points) 3

Harness the power of our global operating platform

• Adj. operating

expense / average AUM

2005 2006 2007 2008 2009 2010 20.7% 31.8% 37.4% 33.2% 28.5% 34.5%

Adj.

• perating m argin
• Adj. operating expense yield is equal to adj. operating expense divided by average assets under management.

1 3

The pow er of a unified operations approach

See the schedule of Non-GAAP information in the appendix of this presentation for a reconciliation of net revenues, adjusted operating income, and adjusted EPS to the most directly comparable U.S. GAAP financial measure.

16.9 32.0 34.1 35.5 35.2 38.2 44.8 53.1 56.4 55.9 56.5 47.7 48.9 11.7 17.8 21.1 17.6 13.6

I nvesco Ltd. operating m etrics per average assets (basis points) 3

Harness the power of our global operating platform

Net revenue yield

• Adj. operating

incom e / average AUM

2005 2006 2007 2008 2009 2010 20.7% 31.8% 37.4% 33.2% 28.5% 34.5%

Adj.

• perating m argin

Net revenue yield is equal to net revenues divided by average assets under management.

• Adj. operating

expense / average AUM

1 4

Ensuring an engaged and high-perform ing w orkforce

4

Perpetuate a high-performing organization

I nstitutionalizing Talent Managem ent / Succession Planning Survey results

• Institutionalizing our talent approach since 2006, with 83% of the top 2

layers of management in new/ expanded assignments and over 37% of all high performers in new roles

• Align top jobs with top talent, provide stretch assignments to high

potentials and respond to management succession needs

• Include all our employees in development planning and one-on-one

development discussions with their managers

90% 97% 9 7 % I am willing to work beyond what is required to help Invesco succeed 76% 76% 8 8 % In my opinion, Invesco is truly oriented to the client 78% 90% 9 3 % I have a clear understanding of the overall goals/ objectives of Invesco 87% 94% 9 3 % I fully support the values for which Invesco stands 79% 81% 9 2 % I am proud to be associated with Invesco Financial Services Results MS/ VK Results I nvesco Em ployee Results 2 0 0 9 Em ployee Survey questions

• Integrated over 700 key investment, distribution and support

professionals into the organization through acquisitions

• Transitioned 600 contract employees in Hyderabad to become

employees into the Invesco organization

• Made several significant strategic hires such as CIO role in Invesco

Perpetual and head of US Institutional Sales among others

• Trained 4X as many participants in 2010 as we did 3 years ago
• Increased training budget to be in line with the industry benchmark
• Deliver training to employees where/ when they want it…

.via online, classroom and intact teams

• All key senior investment professionals receive deferred equity;

approximately 25% of all employees receive deferred equity

• Align executives with shareholders with 60-70% of executive’s annual

incentives delivered in deferred company stock

• Align pay with performance by putting larger year-end rewards in the

hands of our best performers across the firm Grow ing through strategic talent acquisition Focusing on Talent Developm ent Aligning rew ards w ith clients and shareholders

1 5

Capital m anagem ent priorities

• Reinvest in the business
• Acquisitions, when they make strategic and financial sense
• Dividends – moderately increasing (4% -6% per year) with no target

payout ratio

• Share repurchases
• …

while maintaining our investment-grade credit ratings

1 6

• Fills a strategic product gap
• Fills a strategic geographic

gap

• Augments an existing, but

under-performing capability

• Filling identified gap
• rganically would be

prohibitively difficult

• Internal rate of return (IRR)

in excess of 20%

• Investment payback within 7

years

• Accretive to earnings in year
• ne
• Competitive valuation and

comparable multiples Strategic requirem ents Financial requirem ents

Creating value through a thoughtful acquisition strategy

Acquisition criteria are built on meeting strategic and financial objectives

1 7

• Sep. 2006

12/ 31/ 10

• Oct. 2006

12/ 31/ 10

$6.3B $2.6B $11.1B $55.7B

21% Run rate ROIC $107m Run rate direct contribution

(4Q10 annualized)

$515m Invested capital to date

Creating value through a thoughtful acquisition strategy

A deeper look into PowerShares and WL Ross & Co

Pow erShares Capital Managem ent LLC AUM W L Ross & Co. AUM Net inflow s since acquisition + $ 2 6 .8 B + $ 7 .1 B

1 8

Creating value through a thoughtful acquisition strategy

A deeper look into the Morgan Stanley/ Van Kampen combination

Achieve strong investment performance

• Combined investment team fully resourced at close (e.g., market

data, trading, research) to ensure ongoing focus and continued strong performance

• Compensation approach to appropriately recognize, reward and

retain key investment professionals

Deliver our investment capabilities globally Harness our global

• perating platform

Perpetuate a high- performing

• rganization
• Broad and deep coverage of key growth channels and top clients

with a knowledgeable, combined sales force

• Joint client development teams established post-close growth

initiatives for key clients, leveraging broader product line and value-added services

• Intensive product training pre-close to ensure client-facing

professionals are fully prepared to support clients

• Simplified brand with strong, unified market messages
• New business integrated with minimal transition issues – ready to

deliver for clients on Day 1

• At close, Van Kampen or MSIM employees joining Invesco were

fully aligned with the organization and engaged

• Completed platform integration at close allowing full access and

exchangeability among the combined VK, MS and Invesco line-up

• Single open-end fund board at close
• Achieved targeted expense synergies

1 9

617 460 377 386 529 482 766 1,079 450 826 566 898 Ending AUM $ Billions Adjusted operating m argin Percent Adjusted EPS Dollars Adjusted operating incom e $ Millions 2006 2007 2008 2009 2010 34.5 28.5 33.2 20.7 37.4 31.8 2005 2006 2007 2008 2009 2010 1.38 0.89 1.32 1.74 1.23 0.63 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 2005 + 58.7% + 21.1% + 55.1% + 34.2%

** See the schedule of Non-GAAP information in the appendix of this presentation for a reconciliation of net revenues, adjusted operating income, and adjusted EPS to the most directly comparable U.S. GAAP financial measure.

5 YR CAGR + 14.8% 5 YR CAGR + 10.8% 5 YR CAGR + 17.0% 5 YR CAGR + 9.8%

Our m ulti-year focus has driven strong operating results

2 0

Our m ulti-year focus has driven strong shareholder results

• 50%

0% 50% 100% 150% 2005 2006 2007 2008 2009 2010 Asset Manager Index Invesco S&P 500

* Asset Manager Index is the average total return of Affiliated Managers Group, Alliance Bernstein, BlackRock, Eaton Vance, Federated Investors, Franklin Resources, GAMCO Investors, Invesco Ltd., Janus, Legg Mason, Schroders Plc, T. Rowe Price, and Waddell & Reed over the 5 year period from December 31, 2005 through December 31, 2010 7 2 .2 % 3 3 .5 % 1 1 .9 % *

2 1

Discussion topics Delivering value through our multi-year focus on strategy Winning in the global marketplace Questions Appendix

2 2

Focus and Experience

• Exclusive focus on investment management
• Proven management team with a solid track record
• Brand awareness and global relevance
• Independence
• Strong investment culture

Delivery of I nvestm ent Excellence

• Consistent, repeatable long-term investment processes
• Deep, stable teams
• Consistent investment performance through market cycles
• Aligned compensation
• Strong risk management and oversight

Deep Client Relationships

• Knowledge of clients and their evolving needs
• Broad, all-weather product line
• Client relationship diversity via asset class, geography of origin

and channel representation

• Available resources to continue investing in the business
• Operating capability that benefits clients and shareholders
• Global footprint
• Financial stability and strength; ability and willingness to take a

long-term view

• Company culture strongly aligned with investment focus

Organizational strength

Success Driver Areas of Em phasis

W hat w ill global w inners look like?

2 3

1 Source: US Census Bureau, Population Division, International Programs Center; CIA World Fact Book, Eurostat.

Global population

Opportunity to capture growth of assets in emerging, population-heavy markets

307 34 194 82 60 62 128 1,339 1,198 62

US Canada Brazil UK Germany Italy France Japan China India

14% 30% 57%

Selected countries only

6.85 billion people worldwide1 People by country, in millions

2 4

GDP grow th rate expectations

Emerging economies expected to maintain superior growth rates

4.6 4.3 2 4 6 8 10 12

W

• r

l d U S C a n a d a B r a z i l U K G e r m a n y F r a n c e J a p a n C h i n a I n d i a

Forecasted GDP Growth (%)

1 GDP is shown on purchasing power parity (PPP) basis Source: International Monetary Fund, staff estimates, July 2010

2010 & 2011 expected GDP growth rates1 Forecasted GDP growth (% ) 2010 2011

2 5

Household financial assets and global savings levels

Staying focused on where global wealth is today while preparing for the future

44.5 6.6 16.5 4.2 6.1 3.0

US Canada UK Germany Japan China Household financial assets worldwide1 US$ trillions

1 Source: US Federal Reserve; UK Office of National Statistics; Bank of Japan; Cerulli

Selected countries only

2 6

Household financial assets and global savings levels

Staying focused on where global wealth is today while preparing for the future

14.0 50.4 25.4 27.0 15.1 24.0

US Canada UK Germany Japan China^ Savings levels worldwide1 % of nominal GDP, 3-year average

1 Source: OECD Economic Outlook 87 database May 2010. Based on gross national income less consumption (both private and public) as a % of GDP ^ As of 2008. Source: Bank for International Settlements

Selected countries only

2 7

Significant differences in DB/ DC m arket sizes globally

Adoption of DB and DC plans varies considerably by country

1 Source: Towers Watson 2010 Global Pension Asset Study; pension assets include IRAs

2009 DB/ DC split

3,152 Japan 1,213 Canada 990 Netherlands 178 France 411 Germ any 102 I reland 1,791 UK 13,196 US 583 Sw itzerland 392 Brazil 201 South Africa 85 Hong Kong 996 Australia DB DC

9 9 % 9 7 % 9 2 % 7 5 % 6 5 % 6 1 % 6 1 % 4 5 % 4 2 % 3 4 % 2 7 % 2 2 % 1 8 % 5 9 % 4 1 % 8 2 % 7 8 % 7 3 % 6 6 % 5 8 % 5 5 % 3 9 % 3 9 % 3 5 % 2 5 % 8 % 3 % 1 %

2009 pension assets1 US$ billions

W orld 2 3 ,2 9 0

2 8

• The US remains the dominant market for asset managers, with nearly

half of all global household financial assets.

• Emerging markets, especially China, are growing at rates substantially

higher than the US and the developed world.

• Combined with enormous populations, the expected growth in both India

and China will have a profound impact on the global distribution of wealth, disposable income, and AUM over the next 15-20 years.

• Population age differences between emerging and developed markets will

result in differing investment needs and horizons among countries.

• Asset allocation and pension type differ substantially among countries.
• Global trend toward DC continues, though significant opportunity remains

for managers to increase DB market share.

Sum m ary of significant global trends

A dynamic, challenging marketplace that offers significant opportunities These trends underscore the need to be well-diversified with broad capabilities globally across asset classes

2 9

Source: McKinsey & Company Global Banking Pools; Empirical Research Partners Note: Includes all institutional and retail AUM. Note multiple break points in scale for US and Western Europe

12,120 21,470 1,314

Africa Eastern Europe Middle East Latin America Canada Asia & Pacific United States Western Europe

I nvesco has a strong global presence

A meaningful presence in the world’s fastest-growing, wealthiest regions

1,067 286 419 182 6,351 8.6 7.6 11.4 12.3 18.0 16.2 15.2 10.8

Total AUM US$ billions, 2009 Total AUM Growth 2009-2012 CAGR % Invesco presence

    

3 0

By Asset Class I ndustry AUM: $ 5 4 .6 T I nvesco AUM: $ 6 1 6 .5 B

Sources: Cerulli, EFAMA, Invesco estimates. Totals may not equal 100% due to rounding. Industry data as of June 2010

By Client Dom icile

4 9 % Equity Fixed Income 1 2 % Money Market 1 1 % 7 % Alternatives Asset Allocation 2 2 % 6 1 %

I nvesco w ell-diversified globally

Our diversification is aligned with the industry and clients

Asset Allocation Alternatives Money Market Equity Fixed Income

I ndustry I nvesco I ndustry I nvesco

US 45% Middle East/ Africa 4% Europe 27% UK 6% Canada 3% Latin America 2% Japan 7% Australia 2% Greater China 2% Other Asia 2% US 66% Middle East/ Africa 2% Europe 6% UK 13% Canada 4% Japan 5% Australia 1% Greater China 3% 4 8 % 1 1 % 1 3 % 7 % 2 1 %

3 1

I nvesco has a strong, com petitive position in key m arkets

North Am erica UK, Europe and the Middle East Asia-Pacific

• Among top ten US retail firms with $177 billion in AUM
• 57% of US retail assets rated 4 or 5 stars on a loan-waived basis
• 4th largest ETF provider in the US; Invesco PowerShares more than $50 billion

in franchise assets

• 5th largest US closed-end fund manager with $12 billion
• 2nd largest US UIT provider with $15 billion
• Top 10 position in the Canadian retail market, with $25 billion in AUM; second
• nly to Fidelity in the ranks of independent asset managers in Canada
• $110 billion in sourced assets across 13 countries
• Invesco Perpetual ranked # 1 for retail AUM in the UK
• Invesco Perpetual consistently among top 2 firms in sales over the last 5 years

and a growing institutional manager

• One of the leading players in the Continental European cross-border fund

market, a €2 trillion market that is growing fast

• Growing distribution in the Middle East; major mandates with the key Sovereign

Wealth funds

• $40.7 billion in client assets across 6 countries
• First US joint venture (JV) asset management company established in China;

currently rank 1st out of 35 JVs in Chinese equities

• Invesco ranks 5th largest global manager and 8th out of all 123 managers in

Japanese equities in Japan’s huge pension market

• Strong momentum in institutional business -- $3.3 billion new sales in Greater

China and $640 million in Australia since 2Q 2009

3 2

Focus and Experience

• Exclusive focus on investment management
• Proven management team with a solid track record
• Growing brand awareness and strong global relevance
• Independence
• Investment-centric culture

Delivery of I nvestm ent Excellence

• Specialized, stable investment teams with discrete investment

perspectives and experience across diverse market cycles

• Disciplined, repeatable investment philosophy and processes
• Strong risk management and oversight
• Compensation aligned with performance

Deep Client Relationships

• Enhanced client coverage with Van Kampen/ Morgan Stanley retail

acquisition

• Deep knowledge of clients and their evolving needs
• Comprehensive, all-weather product line
• Strong client relationship diversity via asset class, geography of
• rigin and channel representation
• Company culture is an investment culture
• Broad and deep global footprint
• Solid margins, financial stability, and resources to continue long-

term investment in the business

• Survey results demonstrate highly engaged and motivated staff

Organizational strength

Success Driver I nvesco position

I nvesco is w ell-positioned as a global w inner

3 3

Discussion topics Delivering value through our multi-year focus on strategy Winning in the global marketplace Questions Appendix

3 4

Discussion topics Delivering value through our multi-year focus on strategy Winning in the global marketplace Questions Appendix

3 5

Reconciliation of non-GAAP results to US GAAP results

( 2 .5)

• Change in contingent consideration estim ates, net of tax

3 0 .3 1 2 .6 1 3 .3 1 2 .0 1 0 .0 2 5 .9 Am ortization of other intangibles 2 2 .9 2 8 .4 3 9 .7 4 5 .5 2 .9

• Proportional share of operating incom e from JV investm ents

4 5 .3 8 .0 6 .2 8 .7 1 1 .3 1 3 .5 Managem ent fees earned from consolidated investm ent products elim inated upon consolidation 2 1 .1 1 4 .4 1 2 .4 7 .9 7 .2 6 .1 Deferred incom e taxes on intangible assets 2 0 .0 2 0 .0 2 0 .0 2 5 .0

• Am ortization of acquisition-related prepaid com pensation

4 0 2 .5 $ 0 .5 5 $ 0 .6 3 2 5 1 .6

• 2 5 .7
• 2 1 9 .8

1 4 .2 % 2 0 .7 % 4 5 0 .1

• 1 6 .3
• 4 0 7 .9

2 ,1 7 2 .1 ( 8 .0)

• ( 7 0 6 .0)

2 ,8 7 2 .6 2 0 0 5 4 0 6 .1 $ 1 .1 9 $ 1 .2 3 4 9 9 .7

• 9 .8
• 4 8 2 .7

2 3 .4 % 3 1 .8 % 7 6 6 .2

• ( 5 .9)
• 7 5 9 .2

2 ,4 1 2 .8 ( 2 6 .5) 8 .1 ( 8 2 6 .8) 3 ,2 4 6 .7 2 0 0 6 4 1 1 .9 $ 1 .6 4 $ 1 .7 4 7 1 8 .2

• 1 1 .7
• 6 7 3 .6

2 5 .6 % 3 7 .4 % 1 ,0 7 8 .6

• 1 .8
• 2 5 .0
• 9 9 4 .3

2 ,8 8 1 .9 ( 1 5 .2) 6 0 .6 ( 1 ,0 5 1 .1) 3 ,8 7 8 .9 2 0 0 7 3 9 9 .1 $ 1 .2 1 $ 1 .3 2 5 2 7 .1

• 1 3 .0
• 4 8 1 .7

2 2 .6 % 3 3 .2 % 8 2 6 .1

• 5 .3
• 2 0 .0
• 7 4 7 .8

2 ,4 9 0 .2 ( 5 .4) 5 7 .3 ( 8 7 5 .5) 3 ,3 0 7 .6 2 0 0 8 4 2 3 .6 $ 0 .7 6 $ 0 .8 9 3 7 8 .1

• 1 2 .3

8 .9 3 2 2 .5 1 8 .4 % 2 8 .5 % 5 6 5 .6

• 9 .5
• 2 0 .0

1 0 .8 4 8 4 .3 1 ,9 8 4 .6 ( 2 .0) 4 4 .7 ( 6 9 3 .4) 2 ,6 2 7 .3 2 0 0 9 4 6 3 .2 $ 1 .0 1 $ 1 .3 8 6 3 9 .7 1 7 .0 ( 6 .8) ( 5 .3) 2 7 .4 1 0 3 .1 4 6 5 .7 1 6 .9 % 3 4 .5 % 8 9 7 .7 9 .3 5 4 .9 2 4 .2 ( 3 .8) 2 0 .0 1 5 0 .0 5 8 9 .9 2 ,6 0 2 .2 ( 0 .3) 4 2 .2 ( 9 7 2 .7) 3 ,4 8 7 .7 2 0 1 0 Change in contingent consideration estim ates Consolidation of investm ent products ( $ m illions) Operating revenues, US GAAP basis Third-party distribution, service and advisory Proportional share of net revenues from JV investm ents Other revenues recorded by consolidated investm ent products Net revenues Operating incom e, US GAAP basis Transaction and integration charges Am ortization of acquisition-related prepaid com pensation Com pensation expense related to m arket valuation changes in deferred com pensation plans Consolidation of investm ent products Other reconciling item s Adjusted operating incom e Operating m argin* Adjusted operating m argin* * Net incom e attributable to com m on shareholders, US GAAP basis Transaction and integration charges, net of tax Am ortization of other intangibles, net of tax Deferred com pensation plan m arket valuation changes and dividend incom e less com pensation expense, net of tax Other reconciling item s Adjusted net incom e Average shares outstanding, diluted Diluted EPS Adjusted EPS* * *

* Operating margin is equal to operating income divided by operating revenues. ** Adjusted operating margin is equal to net operating income divided by net revenues. *** Adjusted EPS is equal to adjusted net income divided by the weighted average shares outstanding amount used in the calculation of diluted EPS.