CMO-PPT-1I 2.09invescoaim.com FOR INSTITUTIONAL INVESTOR USE ONLY — NOT FOR USE WITH THE PUBLIC 1 Important Information This material is for institutional

CMO-PPT-1I 2.09 invescoaim.comFOR INSTITUTIONAL INVESTOR USE ONLY — NOT FOR USE WITH THE PUBLIC1

Important Information

This material is for institutional investor use only and may not be quoted, reproduced or shown to the public, nor used in written form as sales literature for public use.

Consider the investment objectives, risks, and charges and expenses carefully. For this and other information about AIM funds, obtain a prospectus from invescoaim.com. Investors should read it carefully before investing.

Note: Not all products, materials or services available at all firms. Advisors, please contact your home office.

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The views and opinions expressed are those of the speaker and are subject to change based on factors such as market and economic conditions. The author’s views and opinions are not necessarily those of Invesco Aim and are not guaranteed or warranted by Invesco Aim. These views and opinions are not an offer to buy a particular security and should not be relied upon as investment advice. Past performance cannot guarantee comparable future results.

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Performance quoted is past performance and cannot guarantee comparable future results; current performance may be higher or lower.

Results shown assume the reinvestment of dividends.

An investment cannot be made directly in an index.

Investments with higher return potential carry greater risk for loss.

Investing in small companies involves greater risks not associated with investing in more established companies, such as business risk, significant stock price fluctuations and illiquidity.

Foreign securities have additional risks, including exchange rate changes, political and economic upheaval, the relative lack of information about these companies, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Investing in emerging markets involves greater risk than investing in more established markets such as risks relating to the relatively smaller size and lesser liquidity of these markets, high inflation rates, adverse political developments and lack of timely information.

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Diversification and asset allocation do not assure profit or eliminate the risk of loss.

The S&P 500® Index is an unmanaged index considered representative of the U.S. stock market.

Government securities, such as U.S. Treasury bills, notes and bonds offer a high degree of safety and they guarantee the timely payment of principal and interest if held to maturity.

U.S. T-bills are short-term securities with maturities of one year or less.

Long-term government bonds used in this illustration have a maturity of approximately 20 years.

The Consumer Price Index (CPI) is a measure of change in consumer prices, as determined by the U.S. Bureau of Labor Statistics.

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Consumer Confidence — So Bad It Might Be Good

Source: Copyright 2008© S1060A. Ned Davis Research, Inc. All rights reserved. Data as of Dec. 31, 2008

Plunges have often coincided with market bottoms.

Dow Jones Industrial Average

Consumer Confidence


Record Cash Stash

Source: Copyright 2008© S423A. Ned Davis Research, Inc. All rights reserved. Data as of Dec. 31, 2008

“Stock investors lose faith, pull out record

amounts.”-The Wall Street Journal, Dec. 22, 2008

“Stock investors lose faith, pull out record

amounts.”-The Wall Street Journal, Dec. 22, 2008

Money Market Assets Compared to the Wilshire 5000


Stock Market Volatility Volatility equals risk

Source: Copyright 2009© S0237. Ned Davis Research, Inc. All rights reserved. Data as of Jan. 30, 2009

Volatility has spiked from recent lows, shaking investors out of stocks.

Because stocks are volatile they have historically delivered an “equity risk premium.”

S&P 500 Volatility Index100-day average of absolute change in S&P 500 Index

S&P 500 Index


Taxable Bond Yield Spreads Versus U.S. Treasury Bonds

Source: Copyright 2009© B0384. Ned Davis Research, Inc. All rights reserved. Data as of Jan. 29, 2009

U.S. Government Agency Bonds

Mortgage- Backed Securities

Investment-Grade Corporate Bonds

High-Yield Bonds


Municipal Bond Yields Versus U.S. Agency Yields

Municipal bond yields are still at historically high premiums versus U.S. agency yields.

Source: Copyright 2009© B471. Ned Davis Research, Inc. All rights reserved. Data as of Jan. 29, 2009

Municipal Bond Yields as a Percent of Agency Yields


Sources: Standard & Poor’s, National Bureau of Economic Research, data as of Nov. 30, 2008

10

100

1000

10000

Nov-6

1

Nov-6

3

Nov-6

5

Nov-6

7

Nov-6

9

Nov-7

1

Nov-7

3

Nov-7

5

Nov-7

7

Nov-7

9

Nov-8

1

Nov-8

3

Nov-8

5

Nov-8

7

Nov-8

9

Nov-9

1

Nov-9

3

Nov-9

5

Nov-9

7

Nov-9

9

Nov-0

1

Nov-0

3

Nov-0

5

Nov-0

7

Clear bands indicate recession.

S&P 500

Stocks Have Bottomed Mid Recession

Nov-0

8


Source: Copyright 2008© S01724. Ned Davis Research, Inc. All rights reserved. Data as of Dec. 18, 2008

Recessions have lasted a median of 10 months.

Stocks Have Bottomed Mid Recession


The Economy

“I need some short-term stimulus.”


Gross Domestic Product Growth — Actual and Forecast

Sources: Bureau of Economic Analysis as of Jan. 30, 2009, Wall Street Journal, Jan. 9-12, 2009

2.8

-0.5

-3.8

2.0

1.2

-0.8

-3.3

-5

-3

-1

1

3

5

7

9

1997-I

1997-III

1998-I

1998-III

1999-I

1999-III

2000-I

2000-III

2001-I

2001-III

2002-I

2002-III

2003-I

2003-III

2004-I

2004-III

2005-I

2005-III

2006-I

2006-III

2007-I

2007-III

2008-I

2008-III

2009-I

2009-III

Q/Q

% C

han

ge (

an

nu

aliz

ed)

Gross Domestic Product (A)

January 2009 Consensus GDP Forecast (E)

Key Recovery Drivers: Homebuilding, Business Investment in Capital Expenditures and Inventories and Consumer Spending on Durables (Autos)

Stimuli: Plunge in Energy, Lower Mortgage Rates and Fiscal Stimulus Package

Key Recovery Drivers: Homebuilding, Business Investment in Capital Expenditures and Inventories and Consumer Spending on Durables (Autos)

Stimuli: Plunge in Energy, Lower Mortgage Rates and Fiscal Stimulus Package


Cyclical Versus Steady Growth Components of Gross Domestic Product

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1960Q

1

1962Q

1

1964Q

1

1966Q

1

1968Q

1

1970Q

1

1972Q

1

1974Q

1

1976Q

1

1978Q

1

1980Q

1

1982Q

1

1984Q

1

1986Q

1

1988Q

1

1990Q

1

1992Q

1

1994Q

1

1996Q

1

1998Q

1

2000Q

1

2002Q

1

2004Q

1

2006Q

1

2008Q

1

$ B

illio

ns

0

2,000

4,000

6,000

8,000

10,000

12,000

Consumer Durables + Business Fixed Investment + ResidentialInvestment (left scale)

Other Components of GDP (right scale)

20% of GDP

80% of GDP

Source: Bureau of Economic Analysis, data as of Jan. 30, 2009


Housing Starts Outlook — Actual and Forecast

Sources: U.S. Census Bureau. December data released Jan. 22, 2009. Mortgage Bankers Association’s housing starts forecast dated Jan. 12, 2009. Joint Center for Housing Studies, Harvard University, March 2006

500

700

900

1,100

1,300

1,500

1,700

1,900

Sep-0

6N

ov-0

6Ja

n-0

7M

ar-0

7M

ay-0

7

Jul-0

7S

ep-0

7N

ov-0

7Ja

n-0

8M

ar-0

8M

ay-0

8

Jul-0

8S

ep-0

8N

ov-0

8

Q1 0

9 (E

)

Q3 0

9 (E

)

Q1 1

0 (E

)

Q3 1

0 (E

)

600

800

1,000

1,200

1,400

1,600

1,800

Annual Growth in Number of Households (actual and estimated)

Housing Starts (estimated)

Housing Starts (actual)


Housing Outlook — Affordability

Source: Copyright 2009© E876D. Ned Davis Research, Inc. All rights reserved. Data as of Dec. 31, 2008.

Housing affordability has recovered to record highs with the drop in home prices and mortgage rates.


Vehicle Sales Outlook

Cars

Light Trucks

Total Cars and Light Trucks

0

5

10

15

20

25

Jan-9

0

Jan-9

1

Jan-9

2

Jan-9

3

Jan-9

4

Jan-9

5

Jan-9

6

Jan-9

7

Jan-9

8

Jan-9

9

Jan-0

0

Jan-0

1

Jan-0

2

Jan-0

3

Jan-0

4

Jan-0

5

Jan-0

6

Jan-0

7

Jan-0

8

New

Unit S

ale

s S

AA

R (

mill

ions)

New vehicle sales have sunk below last year’s estimated scrappage.1

1 RL Polk and Co. estimates a 2007 scrappage rate of 5.2% applied to 244 million total stock of vehicles (U.S. Department of Transportation data).

Source: Bureau of Economic Analysis


Consumer Spending Versus Household Net WorthHow significant is the wealth effect on consumer spending?

Sources: Federal Reserve data through Sep. 30, 2008, Bureau of Economic Analysis, data through Dec. 31, 2008.

3.5

4.0

4.5

5.0

5.5

6.0

6.5

1960Q

11961Q

11962Q

11963Q

11964Q

11965Q

11966Q

11967Q

11968Q

11969Q

11970Q

11971Q

11972Q

11973Q

11974Q

11975Q

11976Q

11977Q

11978Q

11979Q

11980Q

11981Q

11982Q

11983Q

11984Q

11985Q

11986Q

11987Q

11988Q

11989Q

11990Q

11991Q

11992Q

11993Q

11994Q

11995Q

11996Q

11997Q

11998Q

11999Q

12000Q

12001Q

12002Q

12003Q

12004Q

12005Q

12006Q

12007Q

12008Q

1

Ratio

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

$ B

illio

ns

Household Net Worth ÷ Disposable Personal Income (left scale)

Disposable Personal Income (right scale)

Personal Consumption Expenditures (right scale)


Big Picture: Echo Boom Bigger Than Baby Boom and Still GrowingLabor force to grow 0.8% per year through 2016

Sources: 1909 to 2004: U.S. Census Bureau, The 2007 Statistical Abstract. 2005 to 2007: U.S. Department of Health and Human Services, National Center for Health Statistics. Preliminary data for 2006 and 2007: Bureau of Labor Statistics.

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

190

9

191

2

191

5

191

8

192

1

192

4

192

7

193

0

193

3

193

6

193

9

194

2

194

5

194

8

195

1

195

4

195

7

196

0

196

3

196

6

196

9

197

2

197

5

197

8

198

1

198

4

198

7

199

0

199

3

199

6

199

9

200

2

200

5

Liv

e B

irth

s (0

00

)

Echo Boomers

(1977–2007)

120 million

Baby Boomers

(1946–1976)

117 million

U.S. Live Births 1909–2006

Is this the next baby boom?USA TodayJuly 17, 2008


U.S. Dollar

Source: Copyright© Thechartstore.com, with permission, monthly data through Nov. 30, 2008.

Trade-Weighted U.S. Dollar Index


Federal Reserve PolicyShock and awe

“Sure we have mortgage money. It’s just that you can’t have any.”


The Federal Budget

“You’re in luck, in a way. Now is the time to be sick — while Medicare still has some money.”


Federal Budget Deficit Actual and projected

- 14%

- 12%

- 10%

- 8%

- 6%

- 4%

- 2%

0%

2%

4%

19

40

19

44

19

48

19

52

19

56

19

60

19

64

19

68

19

72

19

76

19

80

19

84

19

88

19

92

19

96

20

00

20

04

20

08

20

12

(E)

20

16

(E)

20

20

(E)

Perc

ent

(%)

of

GD

P

Source: Actual: Bureau of Economic Analysis quarterly data seasonally adjusted annual rates through Sept. 30, 2008. Projected: Congressional Budget Office, January 2009 forecast adjusted for estimated 2009 fiscal stimulus package

Projected

(dotted line)


Federal Debt and GDP GrowthActual and projected

GDP

Treasury Debt Held by the

Public

0

5,000

10,000

15,000

20,000

25,000

1997Q

3

1998Q

3

1999Q

3

2000Q

3

2001Q

3

2002Q

3

2003Q

3

2004Q

3

2005Q

3

2006Q

3

2007Q

3

2008Q

3

2009Q

4(E

)

2010Q

4(E

)

2011Q

4(E

)

2012Q

4(E

)

2013Q

4(E

)

2014Q

4(E

)

2015Q

4(E

)

2016Q

4(E

)

2017Q

4(E

)

2018Q

4(E

)

2019Q

4(E

)

GD

P (

$ B

illio

ns)

0

2,000

4,000

6,000

8,000

10,000

12,000

Debt

($ B

illio

ns)

Projected

(dotted lines)

Sources: U.S. Treasury and Bureau of Economic Analysis data through Sep. 30, 2008. The Congressional Budget Office’s January 2009 baseline forecast was adjusted for estimated 2009 fiscal stimulus package.


Public DebtAs a percent of GDP compared to other nations

J apan

Belgium

Germany

Canada

France

U.S.

Netherlands

Brazil

Switzerland

U.K.

Sweden

I ndia

Norway

I taly

0

20

40

60

80

100

120

140

160

180

% o

f G

DP

Source: CIA World Factbook, last updated December 2008 with 2007 estimates.


Stock Market

“How much are those?”


10452

1

S&P 500 — Earnings Drive Stock Prices

1 Range of bottom-up/top-down estimated 2009 S&P 500 earnings Per Share (left scale): $76.43/$63.002 Average 2009 S&P 500 year-end forecast (right scale) of the 12 Wall Street strategists surveyed by Barron’s, published Dec. 22, 2008Source: Thomson Baseline, data through Dec. 22, 2008. Reuters survey of consensus estimates is as of Dec. 19, 2008.


Stock Market Arithmetic 7% earnings growth + reinvested dividends = ~10%

1 Growth paths are compounded monthly to yield 5% and 7% annually. 2 Excludes write-offs. Data through Nov. 30, 2008. Source: Copyright 2008© Yardeni Research, Inc. Strategist’s Handbook, Dec. 5, 2008, page 18. All rights reserved. Used with permission.

1

2


S&P 500 Total Return Index Since 1925

Source: Copyright© Thechartstore.com, with permission, data through Oct. 31, 2008.

Trend Line Slope = 11%


S&P 500 Index Total Return Since 1989

Source: Baseline, data through Nov. 25, 2008.

Trend Line Slope = 11%

“History suggests that this is a smart time to invest in U.S. equities.”

- Warren Buffet Oct. 17, 2008

“History suggests that this is a smart time to invest in U.S. equities.”

- Warren Buffet Oct. 17, 2008


Investment Strategy

“Winning is crucial to my retirement plans.”


Take Wall Street’s Advice?

1 Published Dec. 17, 20072 Specialty retail3 Semiconductors4 Beverages5 Pharmaceuticals

Seven out of 12 strategists missed consumer staples.

Good Call Bad Call Missed

Barron’s 2008 Forecast1 Survey of 12 stock market strategists sector picks for 2008

Consumer Discretionary

Consumer Staples Energy Financials Health Care Industrials

Information Technology Materials

Telecommunication Services Utilities

Deutsche Bank X X X

Merrill Lynch X X X X

UBS X X X

Morgan Stanley X X X X

Goldman Sachs X X X X

Bear Stearns X X

JP Morgan X X X

Citigroup X2 X X3

Bank of America Securities X X X

Credit Suisse X4 X5 X

Lehman Brothers X X X

ISI Group X X

Total 2 5 5 4 8 2 8 0 2 1

Actual 2008 Sector Return (Rank)

-35%

(5)

-18%

(1)

-36%

(6)

-57%

(10)

-24%

(2)

-42%

(7)

-44%

(8)

-47%

(9)

-34%

(4)

-32%

(3)


Take Wall Street’s Advice?

1 Published Dec. 22, 20082 Retailers3 Health care equipment4 Semiconductors

Barron’s 2009 Forecast1 Survey of 12 stock market strategists sector picks for 2009

Consumer Discretionary

Consumer Staples Energy Financials Health Care Industrials

Information Technology Materials

Telecommunication Services Utilities

Robert Doll Blackrock X X X

Larry Adam DB Private Wealth

X X X

Alison Deans Neuberger Berman

X X X

Jerry WebmanOppenheimer Funds

X X

Chris HyzyU.S. Trust X X X X

James PaulsenWells Capital Management

X X X X

Tobias LevkovichCitigroup X2 X X3 X4 X

David KostinGoldman Sachs X X

Tom LeeJP Morgan X X X

Rich BernsteinMerrill Lynch X X X

Abhijit ChakrabortiMorgan Stanley

X X X X

Jason TrennertStrategas X X X

Total 4 6 2 4 10 1 6 1 3 2


Modern Portfolio Theory

“Your mother called to remind you to diversify.”


Modern Portfolio Theory = Asset Allocation

Source: Riskglossary.com

Modern portfolio theory was introduced by Harry Markowitz with his paper “Portfolio Selection,” which appeared in the 1952 Journal of Finance.

Thirty-eight years later, he shared a Nobel Prize with Merton Miller and William Sharpe for what has become a broad theory for portfolio selection.

Modern Portfolio Theory

Diversify

Optimize

Rebalance


Asset Allocation Harvard-Yale Style

Source: Barron’s, June 2, 2008

Mohammed El-Erian, Pimco CEO and CIO and former president of Harvard’s endowment:

“U.S.-based individual investors have too much invested in the U.S. and not enough internationally.”

“Use weakness to get exposure to emerging economies because that is where the growth is going to be long term.”

“People should be asking how much inflation protection they have. At some point, real estate will be attractive again as an inflation hedge.”

Portfolio for a New EraIn “When Markets Collide,” El-Erian proposes this neutral asset mix for long-term investors.

EquitiesU.S. 15%

Other advanced economies 15%

Emerging economies 12%

Private 7%

49%

BondsU.S. 5%

International 9%

Real AssetsReal estate 6%

Commodities 11%

Inflation protected bonds 5%

Infrastructure 5%

27%

Special Opportunities 8%

Expected long-term real return 5%–7%

Expected standard deviation 8%–12%

Source: “When Markets Collide”


About Risk

Investing in small companies involves greater risks not associated with investing in more established companies, such as business risk, significant stock price fluctuations and illiquidity.

Foreign securities have additional risks, including exchange rate changes, political and economic upheaval, the relative lack of information about these companies, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Investing in emerging markets involves greater risk than investing in more established markets such as risks relating to the relatively smaller size and lesser liquidity of these markets, high inflation rates, adverse political developments and lack of timely information.


Investment Theme: Dividend Growth Dividend growers have historically done the best

Source: Copyright 2008© S09. Ned Davis Research, Inc. All rights reserved. Used with permission. Data as of Oct. 31, 2008

Past performance cannot guarantee comparable future results.


World Energy Demand Actual and projected

OECD

Non-OECD

0

100

200

300

400

500

600

700

800

2005 2010 2015 2020 2025 2030

Bri

tish

Th

erm

al U

nit

s (q

uad

rilli

on)

Sources: Energy Information Agency, U.S. Department of Energy, International Energy Outlook, June 2008

Total Energy Demand Projected to Increase 50% by 2030

Continued Dependence on Fossil Fuels

Compound annual growth rates from 2007 to 2030

Liquids (1.2%)

Natural gas (1.7%)

Coal (2.0%)

Nuclear (1.5%)

Renewables (1.9%)

0

50

100

150

200

250

1980

1983

1986

1989

1992

1995

1998

2001

2004

2007

2010

2013

2016

2019

2022

2025

2028

Bri

tish

Therm

al

Unit

s (q

uadri

llio

n)


To Conclude

• Stock market volatility has cycled up and down over time. Spikes have marked stock market turns.

• The economy is in recession.

• Stocks have bottomed mid recession.

• Stocks have historically low forward price-earnings multiples.

• Stocks have an 11% long-term trend.

• Taxable and tax-exempt bonds are on sale.

• Commodities have corrected sharply.

• Asset allocation (modern portfolio theory) is one of the best investment methods yet.

• El-Erian’s recommended asset allocation is something to consider.

“It’s just a correction.The fundamentals are still good.”


And Don’t Believe Everything You Hear

A study by Media Research Center of a year’s worth of economic coverage on ABC, CBS and NBC found more than twice as many stories and briefs focused on negative aspects of the economy (62%) compared to good news (31%).

Source: Media Research Center, “Bad News Bears,” October 2006

“We were wondering if now would be a good time to panic?”


“I’m looking for a hedge against my hedge funds.”

Thank You

CMO-PPT-1I 2.09 Invesco Aim Distributors, Inc.

FOR INSTITUTIONAL INVESTOR USE ONLY — NOT FOR USE WITH THE PUBLIC

Invesco AimSM is a service mark of Invesco Aim Management Group, Inc. Invesco Aim Advisors, Inc., Invesco Aim Capital Management, Inc., Invesco Aim Private Asset Management, Inc. and Invesco PowerShares Capital Management LLC are the investment advisors for the products and services represented by Invesco Aim; they each provide investment advisory services to individual and institutional clients and do not sell securities. Please refer to each fund’s prospectus for information on the fund’s subadvisors. Invesco Aim Distributors, Inc. is the U.S. distributor for the retail mutual funds, exchange-traded funds and institutional money market funds represented by Invesco Aim. All entities are indirect, wholly owned subsidiaries of Invesco Ltd.

All data provided by Invesco Aim unless otherwise noted.

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Documents

CMO-PPT-1I 2.09invescoaim.com FOR INSTITUTIONAL INVESTOR USE ONLY — NOT FOR USE WITH THE PUBLIC 1 Important Information This material is for institutional