Asia Infrastructure & Asia Consumer Demand –Back to focus · 3Q09 QoQ, seasonally-adjusted Source...
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Asia Infrastructure & Asia Consumer Demand – Back to focus
Presentation byCorinna LauHead of Asian Products
1. Asia in a Snapshot
3
Stronger Asian economic recovery expected for 2009 and 2010
Source: Invesco. Data and estimates as at September 2009
Asia2008A
(%)2009F
(%)2010F
(%)
China 9.0 8.2 8.0India 9.0 6.4 7.1Indonesia 6.1 4.0 5.5Philippines 4.6 1.5 3.7Australia 2.1 0.3 1.8South Korea 2.5 0.0 4.5New Zealand 0.4 -0.6 2.0Hong Kong 2.5 -2.6 5.3Malaysia 4.7 -3.0 4.0Thailand 2.6 -3.0 5.0Singapore 1.3 -3.0 4.5Taiwan 0.5 -4.3 3.6
US 0.4 -2.7 1.5EU-12 0.7 -3.8 1.5Japan -0.7 -5.6 0.9
GDP Growth
4
-55
-41
-55 -53
-33
-60-51 -55
-39-33
92
5665
73
31
48
85
75
9
25
-80
-60
-40
-20
0
20
40
60
80
100
Cons
umer
Disc
retio
nary
Cons
umer
Sta
ples
Ener
gy
Finan
cials
Healt
h Ca
re
Indu
stria
ls
Info
rmat
ion
Tech
nolo
gy
Mater
ials
Tele
com
mun
icatio
n Se
rvice
s
Utilit
ies
Returns in USD (%)
2008 YT - Oct 2009
Source: Invesco, Factset, as of 31 October 2009
Asian markets – is the rally sustainable?
MSCI AC Asia Pacific ex Japan – Returns by Sectors
-55 -52 -48
-64-58 -56
-42
-52 -55-49 -47 -49 -52 -48
-37 -40
65
54 51
73
100
5144
40
55 5561 58
63
36
1823
-80
-60
-40
-20
0
20
40
60
80
100
120
Aust
ralia
(ASX
)
Chin
a (M
SCI C
hina
)
Hong
Kong
(HSI
)
Indi
a (B
SE 1
00)
Indo
nesia
(JCI
)
Kore
a (K
OSPI)
Mala
ysia
(KLC
I)
New Z
ealan
d (N
ZSE
50)
Philip
pine
s (P
COMP)
Sing
apor
e (S
TI)
Taiw
an (T
WSE
)
Thail
and
(SET
)
MSCI A
C As
ia Pa
cific
ex Ja
pan
MSCI U
KMSC
I USA
MSCI W
orld
Returns in USD (%)
2008 YT - Oct 2009
MSCI AC Asia Pacific ex Japan – Returns by Countries
5
Risk appetite is coming backRisk premium not far from historical lows
JPMorgan EMBI Plus Sovereign Spread
Source: Bloomberg, as at 26 October 2009
100
200
300
400
500
600
700
800
900
03/07 06/07 09/07 12/07 03/08 06/08 09/08 12/08 03/09 06/09 09/09
basis points
100
200
300
400
500
600
700
800
900basis points
Before the financial crisis
Lehman collapse @865bp
6
Abundant liquidity likely to continue
-10
-5
0
5
10
15
20
25
1984 1988 1992 1996 2000 2004 2008-60
-40
-20
0
20
40
60
80
100
120
140Asian Domestic Excess Liquidity %YoY (LHS)
MSCI AC Asia ex-Jp US$ Index 12-m % Chg (RHS)
Source (LHS): CEIC, MSCI, Citi Estimates, Oct 2009Source (RHS): Datastream, EIU, UBS Estimates, Oct 2009
Asia – Indicators of domestic liquidity conditions
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Asia: others Asia: Energy
Asia: Food Asia: CPI (%y/y)
Contribution to CPI growth
7
External environment is stabilizing globally
Standardized leading indicators
Source: Bloomberg, CEIC, UBS WMR, as at 24 June 2009
(5)
(4)
(3)
(2)
(1)
0
1
2
1998 2000 2002 2004 2006 2008
CN: manufacturing PMI
JP: Tankan surveyEurozone: EC business climate indicator
US: ISM manufacturing PMI
8
China’s stimulus policy is working
China electricity generation growthChina PMI, new orders and input prices
Source (top left): CEIC, Deutsche Bank, as of 19 October 2009.Source (top right): Haver, Citi Investment Research and Analysis as at 5 Nov 2009. SA = seasonally adjusted Note: data for January 2007, Jan 2008, and Jan 2009 were not released due to the holiday effects from Chinese New Year.Source (bottom left): Bloomberg, 11 September 2009. Source (bottom right): National Bureau of Statistics, Citi, 11 September 2009. Note: Average growth for Jan-Feb. Source: CEIC Data.
-10%
-5%
0%
5%
10%
15%
20%
25%
Jun 0
7Ju
l 07
Aug
07
Sep
07
Oct
07
Nov
07
Dec
07
Jan -
Feb
08
Mar
08
Apr
08
May
08
Jun 0
8Ju
l 08
Aug
08
Sep
08
Oct
08
Nov
08
Dec
08
Jan -
Feb
09
Mar
09
Apr
09
May
09
Jun 0
9Ju
l 09
Aug
09
YoY
20
30
40
50
60
70
80
1/05 10/05 7/06 4/07 1/08 10/08 7/09
Input Prices
New Orders
PMI
4
6
8
10
12
14
16
18
20
2006 2006 2007 2007 2008 2008 2009 2009
%YoY SA
Industry production GrowthNew Fixed Asset Investment Projects (RMB bn)
9
Asian Exports Picking Up Asian Exports y-o-y
Source: Invesco, Datastream, as of September 2009 for China, Taiwan, and Japan; as of October 2009 for Korea.
-60%
-40%
-20%
0%
20%
40%
60%
2002 2003 2004 2005 2006 2007 2008 2009
ChinaTaiwanKoreaJapan
%YOY(US$)
10
Stimulatory monetary policy across the regionLower interest rates to support economic recovery
Source: Bloomberg, as at 4 November 2009*Reserve Bank of Australia (RBA) started to increase rates by 0.25% each on 6 October and 4 November to 3.5%.
Country/CityInterest rates
(latest)Interest rates
(lower by)
Australia* Sep-08 7.25% 3.50% -3.75%
China Sep-08 7.47% 5.31% -2.16%
Hong Kong Oct-08 3.50% 0.50% -3.00%
India Oct-08 9.00% 4.75% -4.25%
Indonesia Oct-08 9.50% 6.50% -3.00%
Korea Sep-08 5.25% 2.00% -3.25%
Malaysia Nov-08 3.50% 2.00% -1.50%
New Zealand Jun-08 8.25% 2.50% -5.75%
Philippines Nov-08 6.00% 4.00% -2.00%
Singapore Sep-08 2.23% 0.69% -1.54%
Taiwan Jun-08 3.63% 1.25% -2.38%
Thailand Oct-08 3.75% 1.25% -2.50%
Interest Rate(before easing)
11
Asian economies offer growth vs. worldQuarter-on-Quarter GDP Growth in Asia Trend GDP growth in a world of slower globalization
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
Aust
ralia
New Z
ealan
d**
Hong
Kong
Indo
nesia
Mala
ysia
Philip
pine
sSi
ngpo
reSo
uth
Kore
aTa
iwan
*Th
aila
ndIn
dia*
Chin
a*
4Q081Q092Q093Q09
QoQ, seasonally-adjusted
Source (top left): Bloomberg, the government, 9 Nov 2009. Note: *China, India, Taiwan - only yoy data available. **New Zealand -data for 3Q 2008, 4Q 2008 & 1Q 2009. All other data on qoq.Source (top right): UBS, September 2009. Note: Projected trend growth figures are estimated using data on historical relationships between investment share of GDP, population, savings and GDP per capita. Source (bottom left & right): Datastream, EIU, OECD Outlook, UBS Estimates, August 2009. Estimates for 2009 and 2010
Real GDP growth % y-o-y Asia GDP as % of World GDP
-8.0
-4.0
0.0
4.0
8.0
12.0
1996 1998 2000 2002 2004 2006 2008 2010E
8%
10%
12%
14%
16%
18%
20%
1996 1998 2000 2002 2004 2006 2008 2010E
Japan
USEU
OECD
Asia ex-Japan (2007 Nominal GDP weighted)
Asia ex-Japan
12
Asia Pacific ex Japan Earnings gathering momentum – next driver
Source: Merrill Lynch Asia Pacific Quantitative Strategy, MSCI, IBES. As at 28 October 2009.
Earnings revision ratio by country – last 3 months
2.52.4
1.81.7 1.7
1.6 1.6 1.61.5 1.5
1.31.2
1.1
0.8
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Sin
gapore
Thailand
Kore
a
Mala
ysi
a
Taiw
an
Asi
a P
ac
ex-J
apan
Indonesi
a
India
Hong K
ong
Chin
a
Aust
ralia
Japan
Philip
pin
es
New
Zeala
nd
3m
Earn
ings
Revis
ion R
atio
13
Asia ex-Japan trailing PBAsia ex-Japan trailing PE
Source: DataStream, Goldman Sachs, as at 11 Nov 2009
Asia ex Japan PE and PB valuations
+1 SD
-1 SD
Average
+1 SD
-1 SD
Average
(X)
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Nov-
95
Nov-
96
Nov-
97
Nov-
98
Nov-
99
Nov-
00
Nov-
01
Nov-
02
Nov-
03
Nov-
04
Nov-
05
Nov-
06
Nov-
07
Nov-
08
Nov-
09
(X)
5
7
9
11
13
15
17
19
21
23
25
Dec
-94
Dec
-95
Dec
-96
Dec
-97
Dec
-98
Dec
-99
Dec
-00
Dec
-01
Dec
-02
Dec
-03
Dec
-04
Dec
-05
Dec
-06
Dec
-07
Dec
-08
14
Asia - Earnings and valuation summary
Source: Invesco – as at 31 December 2008 , Citigroup Investment Research – as at 6 November 2009*India: Year ended March 31; 2008F = FY09, 2009F = FY10
177.128.423.7
17.272.116.815.61.5
14.934.815.321.011.620.012.752.0
2010F
5-yr average PER (x)
(Historical)
PER (x)EPS Growth (%)
17.019.353.538.7-84.7MSCI Japan14.913.817.7-8.4-29.7MSCI AC World15.514.117.5-2.3-27.5MSCI USA
10.910.612.518.113.9Thailand15.817.630.224.2-67.3Taiwan14.315.017.5-19.8-13.2Singapore15.014.216.417.4-13.2Philippines15.214.114.3-21.4-17.5New Zealand15.315.618.0-9.6-21.8Malaysia10.310.013.545.4-38.0Korea12.113.615.7-0.1-1.6Indonesia18.216.519.85.9-7.5India*15.817.219.20.7-33.1Hong Kong14.914.217.013.1-10.9China17.215.217.1-13.5-13.7Australia12.416.124.48.8-25.1MSCI Asia Pacific ex Japan
2010F2009F2009F2008F
2. Infrastructure is happening
16
Huge potential in Asia infrastructure developmentInfrastructure spending by country (ex-Japan, ex-Middle East)
Asia will spend over US$1tn, 2008-12e
Source: CLSA Asia-Pacific Markets as at 31 March 2008
Estimates US$800bn, 2009-10e
Source: CLSA Asia-Pacific Markets as at April 2009
India23%
Hong Kong 1%
Indonesia 6%
Korea 5%
Malaysia 4%
Philippines 2%
Singapore 1%
Taiwan 4%
Thailand 4%
China48%
Vietnam 2%
Hong Kong 2%
India 12%
Indonesia 1%
Korea 5%
Malaysia 2%
Philippines 1%
Taiwan 4%
Singapore 1%
Thailand 3%
China 69%
17
Rising urbanisation to drive infrastructureAsia’s urban population grows non-stop
Source: Asian Development Bank, 16 December 2008
Urban population growth (%)
2.04 2.182.332.7World
1.4 1.461.521.52Oceania
1.37 1.510.571.24North America
0.13 0.140.370.78Europe
3.08 3.523.775.04China
3.4 3.843.994.11South-East Asia
2.61 2.883.093.78Asia
2000-2005 1995-2000 1990-1995 1985-1990 Region/country
18
Transport Infrastructure on a fast trackDeveloping Asia ranks high in passenger density, but low per capita
0 500 1000 1500
Canada
USA
Russia
Germany
UK
France
China
India
Japan
Source: China Railway Yearbook 2007e, Credit Suisse, December 08
Density of passenger transportation China and India rank low by rail length per capita
0 3 6 9 12 15 18
China
India
Japan
UK
Germany
France
Russia
USA
Canada
10,000 person.km/kmRailway density by populationkm/10 k person
19
China - US$1.2tr infrastructure spending under the current 5-year plan
Source: Ministry of Communication China, Deutsche Bank, 6 July 2007.RMB-USD rate at 6.83 for the projection
8,550
463
2,800
5,287
140
507
2,940
200
1,500
2006-2010 Plan (RMB bn)
2001-2005 Actual (RMB bn)
1,71064%5,252Grand total
9328%363Water
56043%1,965Power
1,05782%2,898Total transportation
2847%95Airports
101207%165Port / Waterway
58851%1,950Roads
400%200Metro / City Rail
300207%488Railway
Average p.a. (RMB bn)Growth %Sector
20
China – additional fiscal stimulus on infrastructure
Source: SCMP, National Development and Reform Commission, as at 19 May 2009
Key Infrastructure ProjectsRmb 1.5 trillion
Agricultural Infrastructure Projects
Rmb 370 billionLow-income group housingRmb 400 billion
Earthquake recovery & reconstructionRmb 1 trillion
Innovation &Technology upgradingRmb 370 billion
Energy conservation& emission reductionRmb 210 billion
Social programmesRmb 150 billion
Rmb 4 trillionStimulus Package
Supported industries by government:
Steel, Auto, Shipyards, Petrochemical, Textiles, Light industries, Non-ferrous metals, Equip manufacturing,
Information Technology, Properties
21
China - Beneficiary of railway spending
Monthly railway capex
Source: Ministry of Railway, JP Morgan as at 13 August 2009 *USD29bn = Rmb201bn in 1H 2009
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Rmb 'm
2006 2007 2008 2009
CAPEXRailway
Rmb800bn2011E
Rmb700bn2010E
Rmb600bn2009E
Source: CARS, MOR, CLSA September 2009.*Picture source: site.ourail.com, CLSA September 2009.
Rail network density – China remains low
22
Australia - CAPEX to benefit E&C and resources sectors
E&C = Engineering & ConstructionSource: Merrill Lynch, "Global Energy-Playing the Australian Capex Wave", 17 August 2009
0
20
40
60
80
100
120
2008 2009 2010 2011 2012 2013
Base load Gov ernment stimulus Resources capex Risked LNG capex Priv ate sector E&C
Australian E&C capex profile, US$300bn+
23
Supportive government policiesKorea - US$37.1 bn economic stimulus package
Source: Ministry of Strategy and Finance, BNP Paribas 7 January 2009
The Green New Deal - Project name
9 core projects
4 Rivers Maintenance 14,478
Green transportation system 9,654
Nationwide building & structure information system 372
Anti-flood system and dam construction 942
Green car & clean energy 2,053
Waste water purification system 930
Green Forest 2,417
Green buildings 8,050
Urban stream rehabilitation 484
27 affiliates programs
Total
39,378
10,671
50,049
Total (KRW bn)
24
India infrastructure sector Ride on improving macro and easing liquidity conditions
0
500
1,000
1,500
2,000
2,500
3,000
05/0
7
08/0
7
12/0
7
02/0
8
05/0
8
08/0
8
12/0
8
02/0
9
05/0
9
Amount
(Rs bn)
Bank credit to the infrastructure sector
Source: Anand Rathi Research, RBI, September 2009.
Under XIth Plan (2008-2012)
Source: India Plan documents, UBS estimates, September 2009. “Cross the wall of worry to join the herd”
Sector FY10 FY11 FY12 Total %
Power 716 915 1,041 2,672 29
Roads & Bridges 645 779 874 2,298 25
Railways 389 437 645 1,471 16
Irrigation 316 348 383 1,047 11
Water supply & sanitation
294 324 356 974 11
Ports 113 142 157 412 5
Airports 45 125 70 240 3
Total 2,517 3,071 3,525 9,113 100
In US$ bn 52 64 73 189
25
Supportive government policiesTaiwan – add to the US$132bn `i-Taiwan’ projects64% increase in infrastructure spending in 2009
Source: Directorate-General of Budget, Accounting and Statistics (Executive Yuan), January 2009
151 147 144 149157
134 139132
215
0
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
NT$bn
+64% yoy
Central Government budgeted Infrastructure Expenditure
Cumulative spending p.a. for “i-Taiwan”*
400
470
570
690
790 780
680
560
460
0
100
200
300
400
500
600
700
800
900
200820092010201120122013201420152016
NT$bn
0
100
200
300
400
500
600
700
800
900
*Includes “i-Taiwan” projects and additional infrastructure spending. Source: Credit Suisse estimates, 23 April 2008
26
Opening of two integrated resorts (cost US$6.9bn) in 2010 will strengthen Singapore economy, benefiting transport & social infrastructure sectors
Singapore - Integrated resorts
Source: Genting Singapore. Dated August 2009.
Marina Bay Sands Singapore Resorts World at Sentosa
Source: Marina Bay Sands Singapore.
27
Indonesia - Strong GDP growth to drive infrastructure spending
Source: PLN, CIMB – Infrastructure The third pillar research, 26 June 2009
• The major gas distributor to benefit from 10GW power expansion plan• Coal and mining contractor to benefit from rising coal demand
28
Hong Kong 10 Mega ProjectsOpportunities on US$32bn social infrastructure
Project Name DescriptionContract Value
Railway Projects- West HK Island MTR 3km long subway project, connecting west HK Island to existing
Island MTR Line. Now the project is under tendering.HK$8.1bn
- South HK Island MTR 7km long subway project, connecting south HK Island to existing Island MTR line. Scheduled to tender in 1H10.
HK$7.0bn
- Shatin to Central Link A railway project will connect Central to Shatin. Scheduled to tender in 2H10.
HK$37.4bn
- Guangzhou-Shenzhen-HK High Speed Railway
26km long high-speed railway project. Scheduled to tender from 2H09 to 1H10 and start construction in 2011.
HK$30.0bn
- HK-Shenzhen Airport Railway Link
Link to shorten travelling time between HK to Shenzhen Airport to 17 mins. The Project is in preliminary study stage.
Road & Bridge Projects- HK-Macau-Zhuhai Bridge A bridge will connect HK with Macau and Zhuhai. The project is in
design stage. Construction scheduled to tender in 2010.HK$72.6bn
- Tuen Mun Western Bypass & Tuen Mun-Chek Lap Kok Link
Northwest New Territories and Lantau Island. Scheduled to tender in 2011.
HK$20.0bn
Other Infrastructure Projects- Kai Tak Redevelopment A plan to redevelop old Kai Tak Airport site into a comprehensive
project including tourism and residential sites. Scheduled to tender in 2H09.
- Development of Lok Ma Chau Loop (HK-Shenzhen Border)
Government of HK & Shenzhen are jointly researching and planning the development and other cross-boundary issues.
- New Development Areas The New Development Areas will provide land for housing, employment, environment-friendly industries. Now the project is in planning stage.
Source: HK Government Policy Address 2007/2008, HK$250bn≅USD32bn @exchange rate 7.75As of 30 April 2009.
29
Thailand Infrastructure Prime beneficiaries on stable politics
Breakdown of stimulus package (SP2) THB1.57trn investment programmes (2009-12)
Source: Public Debt Management Office, Ministry of Finance, RBS 20 August 2009.*THB1.57trn ≅ USD46bn
Health care facilities7%
Education facilities10%
Telecommunications2%
Energy14%
Others11%
Water resources17%
Transportation39%
30
In a year of slowing economiesSector performance - coincidence or correlation?
2008 1998 1997MSCI Sector Performance % % %
Asia ex Japan GDP growth 6.2 2.3 6.8
AC Asia Pacific ex JP (51.6) (4.4) (34.2)
Energy (55.1) (37.4) (11.9)
Materials (55.0) (12.8) (35.8)
Industrials (59.8) (3.0) (48.2)
Consumer Discretionary (55.4) 4.8 (36.7)
Consumer Staples (41.1) (4.4) (24.7)
Health Care (32.7) (9.9) (24.2)
Financials (52.7) (3.7) (38.6)
Information Technology (51.3) (7.0) 15.1
Telecommunication Services (39.1) (3.4) (22.2)
Utilities (32.9) (4.4) (26.6)
Source: MSCI AC Asia Pacific ex Japan Index, FactSet 11 September 2009, average GDP growth from UBS.
31
In a year of growing economiesSector performance - coincidence or correlation?
2006 2007MSCI Sector Performance % %
Asia Pacific ex Jp GDP growth 9.0 9.6
AC Asia Pacific ex Jp 33.1 37.5
Energy 43.8 84.7
Materials 33.0 67.0
Industrials 34.0 58.8
- Capital Goods 33.2 75.1
- Transportation 36.2 42.8
Consumer Discretionary 16.4 22.1
Consumer Staples 42.8 40.8
Financials 41.5 29.3
Health Care 36.2 43.4
Information Technology 13.1 3.0
Total Return
Source: MSCI AC Asia Pacific ex Japan Index, FactSet 11 September 2009, average GDP growth from UBS.
3. Next step – Asian Consumers on the rise
33
From exporters to consumersPrivate consumption in Asia to pick-up the slack from collapsing exports
Source: Datastream, EIU & UBS estimates, data ending 2008, as of May 2009
With Asia’s key export markets unlikely to recover soon, we think the focus will shift back to domestic consumption as a driver of future economic growth.
Nominal Private consumption (LHS)
Merchandise Exports (RHS)
55%
56%
57%
58%
59%
60%
61%
1992 1994 1996 1998 2000 2002 2004 2006 2008
50%
60%
70%
80%
90%
100%
110%
34
Source: CEIC, Nomura Research, May 2009
The pace of change to a consumption-based economy is consistent with historical trendsChina and India are expected to follow the similar pattern experienced in developing nations in the past
As per capita income rises, the shift to a consumption-based economy is expected to speed up.
USD
35
Young population and favorable demographics
Source: Datastream, CEIC, UBS Estimates, September 2008
Population size and age profiles are the foundation of consumption growth
The emergence of the new working class will continue to drive up consumer spending across a broad range of industries.
Persons in ‘000
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
10 to 19years old
20 to 29years old
30 to 39years old
40 to 49Years old
50 to 59Years old
60 to 69Years old
Europe
Japan
US
Asia ex Japan
36
PPP = Purchasing Power ParitySource (LHS): Datastream, CEIC, UBS Estimates, February 2009Source (RHS): Datastream, EIU, UBS Estimates, August 2009. Estimates for 2009-2012
Asian consumer market is the 2nd
largest in the world
Consumer spending in US$ million in 2008
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
US Asiaex
Japan
JapanGermanyUK France China Italy Brazil Spain
Asia ex-Japan
Asian consumers – the current and future driver of growth for the region and the world.
Growing importance of the Asian consumers
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
1996 1999 2002 2005 2008 2011E
GDP per capita in US$, simple average, PPP
Asia GDP per capita has doubled between 1998 - 2008
Asia ex-Japan
37
2. R
ISIN
G
INCO
ME
3. FINANCIAL
SERVICES
INCREASE
4. S
PENDIN
G
DESIR
E
INCR
EASE
S
1. ECONOMIC
GROWTH
Simple consumer demand model
Source: Invesco. For illustrative purposes only.
38
Source: Data ending December 2007, Goldman Sachs, April 2008
Asian savings rates high & debt levels low
Asian has savings to deploy Room to finance higher spending needs
Consumer finance will play a key role to enhance consumer spending in Asia, especially on big ticket items.
%
0
20
40
60
80
100
120
1997 1999 2001 2003 2005 2007
Asia ex-Japan
Japan
EU
UK
US
%
10
15
20
25
30
35
40
45
1997 1999 2001 2003 2005 2007
Asia ex-Japan
Japan
EU
UK
US
Savings to GDP ratio Consumer Credit to GDP ratio
39
Source: 1. Asia = China, Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand2. State of World Population 2007, Unleashing the Potential of Urban Growth, United Nations, June 20073. Datastream, CIEC, UBS, February 20094. Capgemini and Merrill Lynch World Wealth Report 2009, June 20095. The “Bird of Gold”: The Rise of India’s Consumer Market, McKinsey Global Institute, March 20076. From “Made in China” to “Sold in China”: The rise of the Chinese urban consumer, McKinsey Global Institute, November 20067. UBS estimates, May 2009. Passenger vehicle includes sedan, SUV, MPV and Minivan
Asia consumer demand in numbersDid you know?
the number of consumers in Asia1, representing 45% of the world’s total population23.0bn
the number of high-net-worth-individuals with at least US$1 million in liquid financial assets, totaling US$7.4 trillions4
the total US$ consumer spending in Asia in 2008, the 2nd largest consumer market behind the US3
the approximate number of middle class consumers in both India and China by 2025 (India = 583 million5; China = 612 million6)600m
the number of passenger vehicles sold in China in 2008, the 2nd largest auto market in the world76.8m
2.6m
3.7tn
40
Discretionary spendingContribution of Asian consumption to global consumption set to increase (Data ending 2007)
Source: Euromonitor, UBS Estimates, February 2009
Consumption patterns is expected to change with improving fundamentals, especially in discretionary spending. Brand differentiation will be key.
Opportunities
34.0% 33.4%
31.9%
22.7%
20.8% 20.5% 19.7% 19.7% 18.8%
17.6% 16.8%
12.4%
0
5
10
15
20
25
30
35
40
Food Communications Education Alcohol andTobacco
Aggregate Housing Clothing andFootwear
Non-alcoholicbeverages
Leisure Householdgoods andservices
Transport Health andmedical
Asia incl Japan - % Asia ex Japan - %
%
41
China – Retail & appliance sector to bear fruitAppliance ownership among urban citizens
Source: CEIC, UBS, as of 22 October 2009
Appliance ownership among rural citizens
(Rmb) ASP in H109 ASP in Q309
Refrigerators 2050.5 2094.5
Colour TV 1203.6 1667.6
Mobile phone 534.9 612.5
Washing machine 1075.0 1106
Air-conditioner 2540.8 2651.6
Computer 3328.1 3346.6
Water heater 986.0 1963.8
Average Selling Price (ASP) generally higher than 1H2009
42
India – Attractive demographic profile lifts consumption spending
Source (LHS): Morgan Stanley Research, August 2009Source (RHS):United Nations Population Division, UBS, as of November 2009
Fast-Moving-Consumer-Goods (FMCG)
3
910
16
12
12
10
12
15
-8
-1
1
CY03 CY04 CY05 CY06 CY07 CY08
Urban FMCG Growth
Rural FMCG Growth
20
15
10
5
0
-5
-10
%
Youthful Age Pyramid
43
Singapore – Tourism and properties on the rise
Source (LHS): CEIC, GS Global ECS Research, August 2009. Estimated data for the years 2009-2015.Source (RHS): URA, Credit Suisse Estimates, August 2009. Data ending July 2009
Visitors arrivals
0
5
10
15
20
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
8.9
9.810.3 10.1
9.3
10.711.6
12.413.2
14.0
14.8
Mn
0
500
1000
1500
2000
2500
3000
Aug-07 Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
Launched in current month Sold in current month
Lannch-and-take up-rate
Property developers launch and take-up rate
Units
44
Korea – Re-emergence of confidence and sales growth
Source: BOK, Macquarie Research, August 2009. Data ending August 2009Source: Ministry of Knowledge Economy, Macquarie Research, August 2009. Data ending July 2009
Same-store-sales (SSS) growth
Discount store SSS Dept. store SSS
-15
-10
-5
0
5
10
15
20
01/02 01/03 01/04 01/05 01/06 01/07 01/08 01/09
% YoY
50
60
70
80
90
100
110
120
130
99 00 01 02 03 04 05 06 07 08 09
Index
Consumer sentiment
Consumer sentiment Economic outlook
Consumer spending sentiment
45
Philippines - Robust OFW remittancesStrong remittances have been the foundation for solid consumer spending
Source: Bangko Central ng Pilipinas, Deutsche Bank , August 2009. Data ending June 2009
Overseas-foreign-workers (OFW) remittances
-
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
Jan-05
Apr-05
Jul-05
Oct-05
Jan-06
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
-10.0
0.0
10.0
20.0
30.0
40.0
50.0
US$bn % yoy
USD %
46
Automobiles ownershipStill early stage of growth in emerging Asia
Source: Nomura Research, May 2009
Affordability and better road system are driving the demand in automobiles ownership.
47
Consumer financeMortgage and credit card penetrations set to grow
Source: UBS Estimates, February 2009
Two of the most basic forms of consumer finance have low penetration across Asia, compared to the developed world.
Mortgage penetration in 2008E Credit card penetration vs. private consumption per capita (2007)
0
10
20
30
40
50
Aust
ralia
Tai
wan
Hongko
ng
Kore
a
Sin
gap
ore
Mal
aysi
a
India
Indones
ia
Chin
a
Thai
land
Phili
ppin
es
2008E Mortgage penetration: # of households
�
Philippines
Australia
Japan
Thailand
Taiwan
Singapore
Malaysia
Korea
IndonesiaIndia
Hong Kong
China0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
0 5 10 15 20 25
No. of credit card/Working populatiom
Private consumption per capita 2007 (US$ '000)
48
China & India – Growing opportunities in financial leveraging
Credit card fees continue to grow strongly
RMB bn
Source (LHS): RBI, UBS estimates, November 2009. FY07 = March 2006 to March 2007.Source (RHS): CEIC, November 2009.
Retail loans as % of GDP
India China
49
Insurance
Abundant opportunities in insuring emerging consumers
Source: Nomura Research, May 2009
Life insurance premium vs. GDP remains low in emerging Asia against developed countries – China (1.8%), India (4.0%), Indonesia (1.1%).
50
Investment opportunities through the cycle
Broad exposures to the rising of the Asian consumers
Source: Invesco, August 2009
The Asia Consumer Demand theme offers an unique opportunity to invest through economic cycles, while riding on the positive long-term secular up-trend.
Adding domestic cyclicals with attractive valuations and good growth prospects, which the business will benefit from the upswing in economic conditions.
Possible exposures: Continue to add consumer discretionary industries such as automobiles, consumer durables & services, high-end retailing, consumer electronics and media to position for recovery.
Relatively defensive industries, where earnings are more visible, cash flows are stable and healthy balance sheet.
Possible exposures: Food & staples retailing, food beverages and tobacco, household & personal products, internet, telecoms.
Cyclical slowdown Economic trough Recovery
Short-term earnings risk remains, but operational weakness bottoming out.
Possible exposures: Residential properties, consumer finance, and continue to add consumer discretionary industries, while reducing relatively defensive stocks.
Industries that may benefit from government stimulus measures, and beaten-down high quality consumer discretionary industries.
Possible exposures: Industries that are more exposed to mass-market and rural consumers such as in consumer staples and selective consumer discretionary industries.
Appendix 1 - Invesco Asia Infrastructure Fund
52
Invesco Asia Infrastructure Fund Performance
* Launch date 31 March 2006**MSCI AC Asia Pacific ex Japan ND Index^ Annualized figures
Past performance is not an indication of future performance, provides no guarantee for the future and is not constant over time. Performance figures are shown in USD on a mid-to-mid basis, inclusive of gross reinvested income and net of the annual management charge and all other fund expenses. The figures do not reflect the initial charge paid by individual investors. Data Source © 2007 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. All data as at 30 October 2009.
2
5.7
5.7
6.8
6.2
3 yrs^
4
63.5
65.8
49.3
48.4
1 yr^
74.3-55.938.81.2Invesco Asia Infrastructure Fund A Acc
4
-50.8
-51.9
-55.7
Year 2008
144Quartile (C class)
37.057.66.7Morningstar IM EQ Asia Pac ex Japan
36.562.79.0Reference Index**
75.439.51.4Invesco Asia Infrastructure Fund C
Year 2007
YTD3 mths% returns as at 30/10/09 in USD
53
Non-infrastructure sectors led the rally
• Year-to-October, the performance of the reference index* has been driven by non-infrastructure sectors such as consumer discretionary and I.T.
• Infrastructure-related sectors such as telecom and utilities lagged behind.
Source: Invesco, as of 30 October 2009*Reference Index - MSCI AC Asia Pacific ex Japan ND Index
Average Total Average TotalINV_MSCI_SEC_TBR Weight Return Weight Return
Consumer Discretionary 0.26 51.98 5.19 90.66Consumer Staples -- -- 6.00 56.10Energy 8.85 76.93 8.16 64.87Financials 6.25 76.28 34.22 72.63Health Care 0.00 16.30 1.37 31.01Industrials 36.21 52.22 9.43 48.13Information Technology 2.54 49.24 12.60 83.94Materials 11.36 66.31 12.08 74.52Telecommunication Services 16.36 1.50 7.26 8.60Utilities 10.66 22.93 3.68 24.70[Cash] 4.87 0.45 -- --~Others 2.64 31.92 -- --Total 100.00 41.36 100.00 62.71
Invesco Asia Infrastructure Reference Index
54
Invesco Asia Infrastructure FundEstimated weighted average EPS growth & valuation of companies held within the fund
Source: Company weighted average forecasts: Invesco, IBES as at 30 October 2009. Market forecasts: consensus & Citigroup forecasts as at 6 November 2009. The calculations are based on the weighted average of the estimated EPS growth of all the companies held within the fund.There is no guarantee that the EPS growth will be sustained in the future.* Tracking error as compared to the reference index, MSCI AC Asia Pacific ex Japan Index^ using without cash Mkt Cap US$bn(wavg)
Tracking error: 6.79%*
Average weighted market capitalisation: US$24.48bn^
PEG Div. Yield
2009F 2010F 2009F 2010F 2009F 2009F
Weighted Ave. 13.1% 27.7% 21.1x 15.7x 1.61x 2.3%
Asia Pacific ex Japan Market 3.6% 22.6% 17.6x 14.4x 4.89x 3.1%
EPS Growth PER
55
Invesco Asia Infrastructure FundPortfolio details
Source: Invesco, Factset, Morningstar, as at 30 October 2009. Reference index: MSCI AC Asia Pacific ex Japan ND Index.Past performance is not an indication of future performance, provides no guarantee for the future and is not constant over time. The information provided on the investments and investment strategy (including current investment themes, the research and investment process, and portfolio characteristics, weightings, and allocation) represents the views of the portfolio manager at the time this material was completed and is subject to change without notice.
Reference Top 5 Industry Group Portfolio Index
% %
Capital Goods 29.3 6.0Materials 17.8 12.4Energy 11.1 8.0Transportation 9.5 2.5Utilities 7.6 3.1
Country Weighting Portfolio Reference Index% %
China 27.8 19.3
Australia 15.2 28.6
Korea 15.2 13.3
India 10.5 7.5
Taiwan 7.7 11.5
Indonesia 5.9 1.9
Singapore 5.7 4.7
Hong Kong 5.6 8.3
Thailand 1.9 1.3
Malaysia 1.6 2.9
Philippines 0.7 0.4
Pakistan 0.3 0.0
United Arab Emirates 0.3 0.0
New Zealand 0.0 0.4
Cash 1.6 0.0
Total 100.0 100.0
Price (A Class) 12.42Price (C Class) 12.69Fund Size 2,896.98m
30 Oct 2009USD
56
Invesco Asia Infrastructure FundTop 10 holdings
Source: Invesco, Bloomberg, IBES as at 30 October 2009; EPS = Earnings Per Share; CAGR = Compounded Average Growth RateThere is no guarantee that this security will be held by Invesco funds in the future.The information provided on the investments and investment strategy (including current investment themes, the research and investment process, and portfolio characteristics, weightings, and allocation) represents the views of the portfolio manager at the time this material was completed and is subject to change without notice.
Portfolio Weight (%)CountryStock
1.81TaiwanHon Hai Precision
2.16IndonesiaUnited Tractors
2.20IndiaLarsen & Toubro
2.33KoreaPOSCO
2.52ChinaChina Mobile Ltd
2.56AustraliaBHP Billiton Ltd
2.59AustraliaLeighton Holdings
2.75ChinaChina Res Power
3.18IndiaBharat Heavy Elect
3.22AustraliaRio Tinto Limited
57
Diversified opportunitiesGood degree of market breadth
Infrastructure projects can be mainly classified as:
Commercial infrastructure - private sector initiatives to cater for technology advancement.
e.g.: Consumer Discretionary sector: satellites, cable networks.
Social infrastructure - to provide public sector facilities for the society. This sector will be using the public private partnership (PPP) concept in order to encourage operation efficiency.
e.g.: Industrial sector: train stations, Health Care sector: hospitals, Consumer Discretionary sector:schools and stadiums.
Utilities - to provide essential services for the community.
e.g.: Utilities sector: gas/energy/electricity generation, distribution and retailing; water distribution and waste treatment.
Economic infrastructure - to support the long term growth of the economy. These assets long concession period and high barrier to entry.
e.g.: Industrial sector: roads, airports and ports.
For illustrative purposes only.
58
Infrastructure value chainGood degree of market depth
Investment opportunities exist throughout the infrastructure value chain
For illustrative purposes only.
59
Invesco Asia Infrastructure FundYour key to unlocking the growth potential of asian infrastructure
*Factset. Stock universe as at 31 March 2009.**Source: Invesco. Relates to assets managed by the Asia Pacific region.
Capture capital growth potential: Asian infrastructure companies should benefit from the positive macro development and have the potential to outperform.
Early entry into a multi-year theme: Asian infrastructure is a secular growth theme where we are only at the beginning of a long and sustainable cycle.
An exciting opportunity: Invesco Asia Infrastructure Fund offers opportunity to ride on the infrastructure theme.
Abundant bottom-up opportunities: Selection from a large universe of over 3,000* securities. The infrastructure value chain runs from project financing, development to maintenance.
Quality management: Invesco is very experienced in Asian investment, having invested in the region since 1962, with US$19.2 billion of assets under management as at 30 Sept 2009.**
Objective: Aims to achieve long term capital growth from investments in a diversified portfolio of Asian securities of issuers
which are principally engaged in infrastructure activities.
60
Invesco Asia Infrastructure FundPortfolio Construction
Focus on high-quality companies that have the potential to deliver above-average earnings growth in the long run.
Develop a long-term proprietary view on companies in the infrastructure-related sectors.
Not benchmark driven – higher tracking error is likely. Portfolio is not constrained by the reference index.
No preference on market caps – equal emphasis on large, mid and small cap stocks as long as liquidity permits.
61
Invesco Asia Infrastructure Fundstock-pickingBy Invesco’s Asian investment team
Stocks selection will be subject to the prevailing market conditions and availability at time of investment.Numbers are approximate. For illustrative purposes only. Past performance is not an indication of future performance, provides no guarantee for the future and is not constant over time. Source: Invesco, Factset. Universe as at 31 March 2009.*EPS growth as compared with MSCI AC Asia Pacific ex Japan ND.
Target high-quality companies with:
Portfolio of 70 – 130 stocks
Universe of around 3,000
companies
Above-average EPS growth*(in past 3 out of 4 years)
Positive operating cash flow(in past 3 out of 4 years)
Solid balance sheet
Competitive business modeland strong leadership market position (attractive ROE, sustainable EBIT margin)
Appendix 2 – Asia Consumer Demand Fund
63
Invesco Asia Consumer Demand Fund Performance
Past performance is not an indication of future performance, provides no guarantee for the future and is not constant over time. Source: © 2009 Morningstar, as at 30 October 2009, NAV to NAV, A share (Distribution), total return in USD terms with dividend reinvested. Reference index refers to MSCI AC Asia Pacific ex Japan ND Index. Inception date of the Fund was March 2008. Peer group quartile ranks refer to the Fund’s ranking among the Hong Kong Securities and Futures Commission authorised funds categorised by Morningstar under the Equity Asia Pacific ex Japan group. Calendar year performance: 2008 (since fund inception to end-December 2008): -38.0%.
1121Peer Group Quartile Ranks
65.8
69.8
1-year
-9.262.79.0Reference Index
-0.560.58.9Invesco Asia Consumer Fund A (Distribution)
Since inceptionYTD3-month
% return as of 30 October 09 in USD
64
Invesco Asia Consumer Demand FundEstimated weighted average EPS growth & valuation of companies held within the fund
Source: Company weighted average forecasts: Invesco, IBES, as at 30 October 2009. Market forecasts: consensus & Citigroup forecasts, as at 6 November 2009. The calculations are based on the weighted average of the estimated EPS growth of all the companies held within the fund on 30 October 2009. There is no guarantee that the EPS growth will be sustained in the future.
Div. YieldEPS Growth PER PEG
4.89x
1.86x
PEG 2009F
Dividend Yield
3.1%
2.2%
2010F
18.8x24.0x28.8%12.9%Weighted Average
14.4x17.6x22.6%3.6%Asia Pacific ex Japan Market
2010F2009F2010F2009F
PEREPS Growth
65
Invesco Asia Consumer Demand FundPortfolio details
Source: Invesco, Factset, Morningstar, as at 30 October 2009. Reference index: MSCI AC Asia Pacific ex Japan ND Index.Past performance is not an indication of future performance, provides no guarantee for the future and is not constant over time. The information provided on the investments and investment strategy (including current investment themes, the research and investment process, and portfolio characteristics, weightings, and allocation) represents the views of the portfolio manager at the time this material was completed and is subject to change without notice.
149.4mFund Size
9.85Price (A Distribution)
USD
5.1Health Care
8.1Industrials
9.9Consumer Staples
29.5
37.1
Portfolio %
Consumer Discretionary
Financials
Top 5 Sector
13.5Korea
0.0Cash
4.1Other Markets
3.2Indonesia
4.2Singapore
5.7Hong Kong
9.7Taiwan
11.5Australia
13.0India
35.1
Portfolio %
China
Country Weighting
66
Invesco Asia Consumer Demand FundTop 10 holdings
Source: Invesco, Bloomberg, as at 30 October 2009; EPS =Earnings Per Share; CAGR= Compounded Average Growth Rate. There is no guarantee that these securities will be held by Invesco funds in the future.
1.7ChinaChina Mobile
1.7IndiaItc
1.7ChinaUni-President China
1.7AustraliaWestpac Bkg Corp
1.7IndiaIcici Bank
1.7ChinaSinopharm Group Co
1.8KoreaHyundai Motor Co
1.9ChinaInd & Com Bk China
3.0ChinaChina Life Insurance
1.6ChinaPing AN Insurance
Portfolio Weight (%)CountryStock
67
Valuations: Consumer staples & Consumer discretionary
Source: Factset, Datastream, MSCI, GS Global ECS Research, November 2009
Unlike in the West, consumer staples in the East offer fast growth due to the early phase of adoption in quality living standards.
MSCI Asia ex Japan/Consumer Staples 12-month Trailing Price to Book Value Ratio, ending 12 Nov 2009
0.75
1.25
1.75
2.25
2.75
3.25
3.75
4.25
4.75
Dec
-95
Dec
-96
Dec
-97
Dec
-98
Dec
-99
Dec
-00
Dec
-01
Dec
-02
Dec
-03
Dec
-04
Dec
-05
Dec
-06
Dec
-07
Dec
-08
MSCI AC ASIA EX JPConsumer Staples
Mean
Mean+1SD Mean-1SD
MSCI Asia ex Japan/Consumer Discretionary 12-month Trailing Price to Book Value Ratio, ending 12 Nov 2009
0.7
1.2
1.7
2.2
2.7
3.2
Dec-
95
Sep-9
6
Jun-9
7
Mar-
98
Dec-
98
Sep-9
9
Jun-0
0
Mar-
01
Dec-
01
Sep-0
2
Jun-0
3
Mar-
04
Dec-
04
Sep-0
5
Jun-0
6
Mar-
07
Dec-
07
Sep-0
8
Jun-0
9
MSCI AC ASIA EX JPConsumer Discretionary
Mean
Mean+1SD Mean-1SD
68
• Retail Banks• Diversified Financials• Insurance• Real Estate
• Wireless services• Fixed-line services
•Automobile & Components•Consumer Durables & Apparel•Consumer Services•Media
• Food & Staples Retailing• Food Beverages & Tobacco• Household & Personal
Products
• Gas Distributors• Electric Utilities • Medical & Nursing
• Pharmaceuticals & Biotechnology• Hospital & nursing management
Asia Consumer Demand
Telecom Services
Invesco Asia Consumer Demand Fund
A diversified investment universe directly targeting the rise of the Asian consumers
Source: Invesco. The industry classifications are for illustration purpose only, which may differ from the actual industry breakdown of the Invesco Asia Consumer Demand Fund
Utilities
HealthCare
Consumer Discretionary
• Computers & peripherals• Home entertainment• Digital imaging & accessories• Mobile phone• Internet service providers/gaming
Consumer Staples
Consumer Information Technology
Financials
69
Objective: Aims to achieve long-term capital growth from investment in a diversified portfolio of Asian equities of companies likely to benefit from, or is related to, the growth in domestic consumption in the region.
Invesco Asia Consumer Demand FundBenefits
Provide early entry to the world’s fastest-growing consumer market: Asia is arguably the fastest-growing consumer market, which offers multi-year growth prospects for the long-term investors to benefit from the rising spending power of Asian consumers.
An exciting opportunity: Invesco Asia Consumer Demand Fund offers an opportunity to invest in the boom in the Asia Consumer Demand theme.
Capture abundant investment ideas: The Fund aims to uncover investment opportunities from a large universe of nearly 6,000 consumer demand-related securities in Asia, primarily through our bottom-up stock selection process.
Allow diversification across different sub-sectors: Investment opportunities exist across a range of Asia consumer demand-driven sectors, such as Consumer Discretionary, Consumer Staples, Consumer Financials, Consumer Information Technology, Health Care, Telecom Services and Utilities.
70
Consumer Demand
Universe of around
6,000 companies
Targeting high-quality companies with strong management that may exhibit:
Stocks selection will be subject to the prevailing market conditions and availability at time of investment. Numbers are approximate. #Target Holdings is an unofficial guidance based on the current stock universe and AUM of the Fund as of 1 August 2009. Consumer Demand Universe as of 30 November 2007. * EPS (earnings per share) growth as compared with MSCI AC Asia Pacific ex Japan. ROE = Return on equity; EBIT = Earnings before interest and tax.
Above-average EPS growth*
Strong operating cash flow
Solid balance sheet
Competitive business model and strong leadership market position (attractive ROE, sustainable EBIT margin)
Invesco Asia Consumer Demand FundStock selection
Target Holdings: 60-80 stocks#
Risk considerations
The value of investments and investment income may rise and fall (this may be partly due to exchange rate fluctuations in investments which have an exposure to foreign currencies) and investors may not get back the full amount invested.
Although the fund invests mainly in established markets, it also invests in emerging and developing markets, where difficulties in dealing, settlement and custody problems could arise. As this is a theme based fund, investors should be prepared to accept a higher degree of risk than for a fund with a broader investment mandate.
The fund invests in Asian equities which are generally less liquid than developed markets.
The fund is suitable for investors who are seeking capital appreciation over a 5 to 10-year time frame and are prepared to accept risk to their capital and a higher level of volatility in the value of their investments. Invesco would classify this type of investment as being more “specialist“ than a mainstream developed-market equity fund. Only a small portion of investable wealth should be invested in the fund.
The fund’s positioning and performance can vary significantly from that of the reference index and the peer group.
A more detailed description of risk factors is set out under ”Risk Warnings” in the Full Prospectus.
7272
Important Information
This marketing document is exclusively for use by professional clients and financial advisors in Continental Europe and is not for retail client use. Please do not redistribute. Data as at 31 October 2009, unless otherwise stated.
For information on fund registrations, please refer to the appropriate internet site or your local Invesco office. This marketing document does not form part of any prospectus. Whilst great care has been taken to ensure that the information contained herein is accurate, no responsibility can be accepted for any errors, mistakes or omissions or for any action taken in reliance thereon. Opinions and forecasts are subject to change without notice. The value of investments and the income from them can go down as well as up (this may partly be the result of exchange rate fluctuations in investments which have an exposure to foreign currencies) and investors may not get back the amount invested. Past performance is not an indication of future performance provides no guarantee for the future and is not constant over time. The performance data shown does not take account of the commissions and costs incurred on the issue and redemption of units. Any reference to a ranking, a rating or an award provides no guarantee for futureperformance results and is not constant over time. There is potential for increased volatility in emerging stock markets, and only a modest proportion of investable wealth should be invested in them. Investing in funds focused on specific themes, particular areas of the market or small capitalisation companies may increase the risk associated with them due to the volatility and/or the concentrated nature of these investments. Investors should read the fund simplified and full prospectuses for specific risk factors and further information. This document is not an invitation to subscribe for shares in the fund and is by way of information only. It is not intended to provide specific investment advice including, without limitation, investment, financial, legal, accounting or tax advice, or to make any recommendations about the suitability of the fund(s) for the circumstances of any particular investor. You should take appropriate advice as to any securities, taxation or other legislation affecting you personally prior to investment. Asset management services are provided by Invesco in accordance with appropriate local legislation and regulations. www.invescoeurope.com
Additional information for professional clients in Germany, Austria and Switzerland:
This document is issued in Germany by Invesco Asset Management Deutschland GmbH regulated by Bundesanstalt fürFinanzdienstleistungsaufsicht. This document is issued in Austria by Invesco Asset Management Österreich GmbH and in Switzerland by Invesco Asset Management (Schweiz) AG Subscriptions of shares are only accepted on the basis of the current fund prospectus. Swiss professional clients should consider this document only in connection with the relevant monthly fund fact sheet which contains further performance information. Prospectuses and reports are available free of charge at Invesco Asset Management Deutschland GmbH, An der Welle 5, D-60322 Frankfurt/M., Invesco Asset Management Österreich GmbH, Rotenturmstrasse 16-18, A-1010 Vienna, and Invesco Asset Management (Schweiz) AG, Genferstrasse 21, CH-8002 Zurich.