Invesco em corp_bonds_citywiregstaad_9_2013

Invesco Emerging Market Corporate BondsCitywire Switzerland 2013

September , 2013

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Table of contents

Perspective on Emerging Market Corporate Bonds

Invesco overview

Invesco investment philosophy and process

Portfolio positioning and performance

Appendix

2

Perspective on Emerging Market Corporate Bonds

Year-to-date Index Performance 2013Emerging Markets Debt versus High Yield, Investment Grade and US Treasuries

Global HY: JP Morgan Global High YieldEMBIG Div: JP Morgan Emerging Markets Bond Index Global Diversified – EM Sovereign Bond IndexGBI-EM Global Div: JP Morgan Government Bond Index- Emerging Markets Global Diversified – EM Treasuries IndexJULI: JPMorgan US Liquid Index – Investment Grade CorporatesCEMBI Broad Div: JP Morgan Corporate Emerging Market Bond Index Broad Diversified GBI-US: JP Morgan Government Bond Index – US Treasuries

Source: JP Morgan, data through September 3, 2013, chart created by Invesco.

4

85

90

95

100

105

110

31.

Dez

12

07.

Jan

1314

. Ja

n 13

21.

Jan

1328

. Ja

n 13

04.

Feb

1311

. Fe

b 13

18.

Feb

1325

. Fe

b 13

04.

Mrz

13

11.

Mrz

13

18.

Mrz

13

25.

Mrz

13

01.

Apr

13

08.

Apr

13

15.

Apr

13

22.

Apr

13

29.

Apr

13

06.

Mai

13

13.

Mai

13

20.

Mai

13

27.

Mai

13

03.

Jun

1310

. Ju

n 13

17.

Jun

1324

. Ju

n 13

01.

Jul 1

308

. Ju

l 13

15.

Jul 1

322

. Ju

l 13

29.

Jul 1

305

. Aug

13

12.

Aug

13

19.

Aug

13

26.

Aug

13

02.

Sep

13

Global HY Market Index Value JULI All Cumulative Total Return AllEMBIG Div Cum Tot Ret Idx CEMBI Broad Div Cum Tot Ret IdxGBI-EM Global Div Index Total Return Index US $ GBI-US Total Return Index Level US $

Cumulative Total Return – 31 Dec 2012 – 3 Sep 2013

What is the Emerging Market Corporate Bond universe?

40%

27%

19%

14%

Asia

Latin America

Mid-East /Africa

Europe

Source: JPMorgan, as of 30 June 2013, unless otherwise indicated.

6%6%

6%

6%

6%

5%

6%

5%5%5%

13%

8%

16%

9%

Russia

Hong Kong

Brazil

Mexico

Korea

China

India

UAE

Qatar

Singapore

Other Asia

Other Europe

Other LatAm

Other ME/Af

EM Indices CEMBI Broad (EM Corporates) US$678 billion EMBI Global (US$ ext): US$554 billion EURO EMBI Global: € 66 billion GBI-EM Broad (local): US$1,478 billionEM Total: US$2,796 billion

CEMBI Broad Diversified by Country

Corporate Indices CEMBI Broad (EM Corporates): US$678 billion Barclays US Aggregate: US$15,345billion Barclays US High Yield US$1,157 billion Barclays US Corporate US$3,561billion

42 Total CountriesAverage Credit Quality: Baa2/BBB

CEMBI Broad Diversified by Region

5

Emerging Market Corporate Bonds Asset class continues to mature

75

100

125

150

175

200

225

250

275

Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12

Source: Data for CEMBI Broad Diversified Index from JPMorgan, data through 30 June 2013, chart created by Invesco.

CEMBI Broad Diversified Index (Cumulative Total Return) – Growth of US $100, 31 Dec 2001 – 30 June 2013

Global Credit Crisis (Fall ’08)

Refco Bankruptcy filing (Oct ’05)

Conseco Bankruptcy

filing (Dec ’02)

Global Crossing Bankruptcy filing

(Jan ’02)

WorldCom Bankruptcy filing

(Jul ’02)

Lehman Brothers Bankruptcy filing

(Sept ’08)

WaMu Bankruptcy filing (Sept ’08) Gen. Motors

Bankruptcy filing (Jun ’09)

CIT Group Bankruptcy filing

(Nov ’09)

Argentine Devaluation/Default

(2002)

Gro

wth

of

US $

100

6

34.8 33.8 31.011.9

44.967.0 61.4

125139.3

26.4 41.8 52.9

28.3

24.1

41.934.5

65.569.0

23.626.7

36.9

9.9

47.7

75.177.2

99.9 80.6

13.021.5

28.6

7.1

19.9

26.729.3

39.0 47.1

0

50

100

150

200

250

300

350

2005 2006 2007 2008 2009 2010 2011 2012 2013FAsia Emerging Europe Latin America Middle East & Africa

EM corporate hard currency issuance remains high Diverse regions of issuance

7

Source: JPMorgan, EM Corporate Weekly Analytics, April 2013. F is forecasted values.

100

150

200

250

300

350

400

Apr 10 Jul 10 Okt 10 Jan 11 Apr 11 Jul 11 Okt 11 Jan 12 Apr 12 Jul 12 Okt 12 Jan 13 Apr 13 Jul 13

CEMBI Broad Div IG Subindex JULI (US IG Credit)

Spread

84 bps

Emerging Market IG corporate still attractive relative to US IG credit

Source: Barclays, data through June 30, 2013, chart created by Invesco.

8

7.3%

15.4%

6.3%

0.1% 0.0% 0.2% 0.0%1.9%

10.7%

1.5% 0.5%2.7% 2.2%

4.5%

8.1%

3.0%

0.1% 0.0% 0.1% 0.0%0.7%

3.5%

0.5% 0.1%0.9% 0.6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F

Default rate % HY debt stock Default rate % total debt stock

EM corporate default rate history

Source: JP Morgan, Emerging Market Corporates Reference Presentation: May 2013

9

Invesco overview

Explore Intentional Investing with Invesco

11

®

Specialized Fixed Income capabilities delivered globally

12

Data as of June 30, 2013 unless otherwise stated. Dates represent launch of initial product managed in this strategy. Invesco Fixed Income does not include all the fixed income entities within Invesco Ltd., and is not limited to those fixed income assets within the GIPS-compliant firm Invesco Worldwide; therefore, the assets under management reported here for Invesco Fixed Income may not match the fixed income assets reported in the Invesco earnings statement.

Invesco Fixed IncomeUS$234.0 billion in AUM 162 investment professionals Operating in eleven cities across five

countries

Global LiquidityUS$79.1 billion in AUMSince 1980 Prime, government and

tax-free products Focus on safety and liquidity

while seeking to deliver a competitive yield Multiple currencies

Broad Fixed Income US$58.6 billion in AUMSince 1977 Core, core plus,

intermediate Mortgage-backed securities

(MBS)/Asset-backed securities (ABS), investment grade, high yield, emerging markets, municipals and convertibles Global, non-US dollar,

European, broad alpha

Stable Value US$47.6 billion in AUMSince 1985 Diversified and cost-

effective approach using commingled funds Tremendous flexibility —

a highly customized stable value design with a variety of existing strategies

Alternatives US$48.7 billion in AUMSince 1990 Senior secured bank loans Structured securities (bank

loans, ABS and credit default swaps) Credit opportunity/Credit

arbitrage Real estate investment trust Participant in the Public-

Private Investment Program for Legacy Assets

North America Asia Europe AustraliaAtlantaChicagoHoustonLouisvilleNew YorkSan DiegoPalm Harbor

Hong KongTokyo

London Melbourne

Invesco Global High Income investment capabilities

13

*Denotes EM and/or HY team member presence. Team information as of August, 2013. Subject to change without notice. AUM Data as of June 30, 2013.

High Yield Debt 11 dedicated investment professionals Assets under management of US$2.9B Average years of experience 18 years Average years at Invesco 7 years Strategies offered: High Yield, BB-rated High

Yield

Global High Income Combines the capabilities of Invesco’s

Emerging Market and High Yield teams Assets under management for Global

High Income strategy: US$5.3 billion Investment professionals in Asia, UK and

US.

Emerging Market Debt

5 dedicated investment professionals Assets under management of US$2.4B Average years of experience 18 years Average years at Invesco 7 years Strategies offered: Emerging Market Debt,

Emerging Market Local Currency Debt, Emerging Market Corporate Bond

London

Hong Kong

Atlanta

Emerging Market Corporate BondsInvesco philosophy and process

Invesco Emerging Market Corporate Bond strategyInvestment philosophy and approach

Our philosophy: We believe EM corporate debt is a unique and often misunderstood asset class, so we have a dedicated team focusing on total return using a bottom-up fundamental process specifically suited for EM corporate debt.

Unlike many peers, we have followed these companies for many years, invested throughout the capital structure, and have seen operating performance through diverse cycles.

Our approach:We seek to create value by actively managing risks particular to EM corporate debt to increase investment results.

We focus on country/market specific risks that may not surface in conventional developed market corporate credit analysis

We closely monitor market/segment trading technicals

We have a strong grasp on the local backdrop: legal, accounting, politics, etc.

The opinions expressed are those of Invesco, are based on current market conditions and are subject to change without notice.

15

Invesco Emerging Market Corporate Bond strategySpecialised investment process

We do not use a generic U.S. centric corporate debt process. Our process takes into account the unique characteristics of EM corporate debt:

Inverted capital structure

Local accounting

Relationship with local banks

Legal backdrop

Local operating environment

Local politics and sovereign support

16

Invesco Emerging Market Corporate Bond strategyThorough investment process

Investment Approach

Screening is just the beginning of the process− We look at a wide range of credits. There are more than 700 bonds in the CEMBI

Broad Diversified so industry and country screening is the starting point.

Effective modeling is our backbone− We don’t stop at EBITDA, but we understand true free cash flow (period change in

cash and cash equivalents), differentiate between discretionary/non-discretionary free cash flow.

Being on the ground is critical to adding alpha− Country visits, intensive contact with regulators, bankers, local analysts, local

industry experts allow us to develop an independent view on company/industry dynamics that go beyond sell-side views and street consensus.

Forensic accounting and analysis improves our technique− We allocate significant time learning from our (and others) mistakes. Given recent

cases of fraud, we must establish effective channel checks. External auditor approval is not a 100% sign of integrity.

Source: Invesco, as of 30 June 2013.

17

Invesco Emerging Market Corporate Bond strategyComprehensive Investment Process

For illustrative purposes only.

We seek to avoid downside loss by choosing companies that meet our corporate governance checklist:

We prefer companies with long experience in local and/or international equity markets.

Status as a listed company

The more independent members, the better. A track record of objectivity versus controlling

shareholders’ interests.

Fair composition of the Board of

Directors

Despite subordination, we often prefer this “on the ground” stamp of approval for smaller companies.

Local banks as investors

While not a bulletproof stamp of approval, a positive sign.

Presence of locally based “Big 4”

auditors

Those companies willing to provide protection for minority investors will often be more willing to treat other stakeholders fairly.

Protection for minority investors

18

Invesco Emerging Market Corporate Bond strategyInvestment process example: West China Cement Ltd.

Source: Invesco. For illustrative purposes only and is not a recommendation to purchase any security. The opinions expressed are based on current market conditions and are subject to change without notice. There is no guarantee that these securities will be held by Invesco in the future. All currency figures are in USD.

Effective modeling is an important part of our investment process – we will generally forecast cash flow 5 years out

Modeling helps us determine an issuer’s ability to repay debt and identify risk

We strive to understand true free cash flow (period change in cash and equivalent) – analyze beyond EBITDA

Differentiate between discretionary and non-discretionary free cash flow

West China Cement

Income Statement 2013 2013 ($) 2016 2016 ($)Annual Revenues 4,722.2 760.4$ 7,215.8 1,196.7$ % Change 28.9% 31.0% 14.5% 14.7%

Cost of Raw Materials (1,093) (176) (1,602) (266) Cost of Coal (1,252) (202) (1,730) (287) Cost of Electricity (641) (103) (939) (156) Other Costs (693) (112) (930) (154) COGS (3,679.9) (592.6)$ (5,200.7) (862.5)$ Gross Profit 1,042.3 167.8$ 2,015.2 334.2$ Operating Expense (330.6) (53.2)$ (505.1) (83.8)$ VAT Refund 236.1 38.0$ 360.8 59.8$ EBIT 947.9 152.6$ 1,870.9 310.3$ Depreciation and Amortizatio (385.8) (62.1)$ (442.7) (73.4)$ EBITDA Breakdown 2013 2013 ($) 2016 2016 ($)EBITDA 1,333.7 214.8$ 2,313.5 383.7$ EBITDA/t 74.3 12.0$ 96.2 16.0$ EBITDA Margin 28.2% 28.2% 32.1% 32.1%% Change 25.9% 27.9% 19.0% 19.2%

Working Capital (162.8) (25.2)$ (55.2) (9.1)$ Interest Expense (Pro‐Forma) (267.1) (43.0)$ (181.7) (30.1)$ Interest Rate 7.4% 7.4% 7.4% 7.4%

Cash Taxes (133.4) (21.5)$ (231.4) (38.4)$ % of EBITDA 10.0% 10.0% 10.0% 10.0%

Capex (750.0) (120.8)$ (750.0) (124.4)$ % of Revenues 15.9% 15.9% 10.4% 10.4%

M&A ‐ ‐$ ‐ ‐$ % of Revenues 0.0% 0.0% 0.0% 0.0%

Debt Amortization 170.0 44.1$ (2,412.0) (400.0)$ Equity Contribution ‐ ‐$ ‐ ‐$ Dividends (66.7) (10.7)$ (115.7) (19.2)$ % of EBITDA 5.0% 5.0% 5.0% 5.0%

Others ‐ ‐$ ‐ ‐$ Free Cash Flow 123.8 19.9$ (1,432.4) (237.5)$

19



20

Strengths OpportunitiesRegional leader protected by mountainous geographical barriers

Price coordination in a highly consolidated cement market

Strengthening corporate governance

China Western Development

Urbanization in China

Guizhou market

Weaknesses ThreatsLow cash balance

Minimum geographic diversification

Ambitious expansion plans

Collapse of price coordination

Lack of funding for infrastructure projects

Unfavorable weather

SWOT Analysis



21

Consideration Score (1 - 5) Weight IssuerChairman/Shareholders/Management least - most creditor favorable 20% 3.0Disclosure Quality low - high 20% 3.0Business Model complicated - simple 20% 5.0Street Coverage limited - sufficient 20% 4.0Track Record poor - good 20% 2.0Overall weak - strong 100% 3.4

Corporate Governance

Covenant HighlightsDebt incurrenceFCCR >= 3.0x prior to 12/31/2011FCCR >= 3.25x from 1/1/2012 through 12/31/2012FCCR >= 3.50x thereafterDebt incurred by restricted subsidiaries up to 15% of total assetsCarve-out: 10% of total assets

Change of controlPut option @ 101 requires ratings downgrade to trigger

Restricted paymentsCarve-out: US$10mm up-front credit and 4% of total assets

Invesco Emerging Market Corporate Bond strategyInvestment process — construction

Portfolio construction

Currency:− Primarily USD denominated bonds− Max local currency exposure of 25%

Off-index weights:− Max off-index country weights each limited to a 5% portfolio weighting

Industry:− Max sector exposure limited to 1.5 times index weight

Duration:− Range is within 1.5 years of index


22

Why Invesco for Emerging Market Corporates?

As of 30 June 20131 JPMorgan, Emerging Markets Outlook and Strategy, April 2013. The opinions expressed are based on current market conditions and

are subject to change without notice.

1 Experienced dedicated emerging markets corporate team

Invesco has had a dedicated EM Corporate portfolio manager/analyst in place since 2006, with over 18 years of experience trading, analyzing and investing throughout the capital structure of emerging market companies.

2 Process is tailored to EM Corporate Bonds

We do not use a generic U.S. centric corporate debt process. Our process takes into account the unique characteristics of EM corporate debt.

3 Proprietary and effective modeling We don’t stop at EBITDA, but we understand true free cash flow and differentiate between discretionary/non-discretionary free cash flow. We will model cash flow out for 5 years.

4 Emphasize downside protection We seek to avoid downside loss by choosing companies that meet our corporate governance checklist.

5 Forensic accounting and analysis improves our technique

We allocate significant time learning from ours (and others’ mistakes). Given recent cases of fraud, we must establish effective channel checks. External auditor approval is not a 100% sign of integrity.

23

Portfolio positioning and performance

Strategy Invesco Emerging Market Corporate Bond

Objective Current income with a secondary objective of long term growth of capital

Benchmark JP Morgan CEMBI Broad Diversified

Strategy Assets US$189 million

Available Vehicles SICAVInstitutional Separate Account

Portfolio Manager Jack Deino, CFA –Head of Emerging Market Debt

Investment Philosophy and Process

An emerging market strategy focused on maximizing total return over a credit cycle. Using bottom-up fundamental research and top-down risk positioning guidance, the team employs a total return approach that seeks to deliver current income, capital appreciation, and capital preservation over a full credit cycle. Risk management helps ensures broad diversification and guard against undue correlations.

Typical Number of Holdings

Minimum 35

Avg. Credit Quality1 BBB-

Key Points

The senior PM, Jack Deino, has 19 years of experience investing throughout the capital structure of emerging market companies. He is supported by a dedicated emerging markets debt team. PMs have an average of 18 years of experience. Core members have been in place since 2006.

Process designed to perform through full credit cycle

Index aware but we are not index replicators

Commitment to diversification: country/sector/issuer

Invesco Emerging Market Corporate BondsStrategy profile - as of 31 July 2013

Sources: Invesco; JPMorgan. See Appendix for additional information, including rankings, and important disclosures.1 Average Credit Quality (ACQ) is an internal measurement calculated by taking the highest rating of the 3 major rating agencies (S&P, Moody’s and Fitch) at a

security level. It is then changed into a numerical value, asset weighted and then calculated to be shown at the portfolio level in Moody’s format. Non-rated securities are not included in the average quality calculation. Information on non-rated securities is provided in the Quality Distribution chart, if applicable. ACQ calculations may vary across the industry and should not be the only factor in analyzing a portfolio. Please review all information carefully before investing.

-5.13-2.93

5.61

8.50

-4.77-2.75

2.33

4.70

-10

-5

0

5

10

3 months YTD 1 year Since Inception*

Invesco EM Corporate Composite JP Morgan CEMBI Broad Div Idx

*Inception date: 31/05/2011Past performance is not an indication of future performance. Performance is gross of fees and is supplemental to the composite performance, which includes net of fee performance, in the full GIPS disclosures. Returns less than one year are cumulative; all others are annualised.

Cumulative performance as of 31 July, 2013

25

-5.1-2.9

5.6

8.5

-4.8-2.8 2.3

4.7

-10

-5

0

5

10

3 months YTD 1 year Since Inception*Invesco EM Corporate Composite JP Morgan CEMBI Broad Div Idx

Invesco Emerging Market Corporate BondsStrategy characteristics - as of 31 July 2013

10

4237

9

0

28

38

1610

20

10

20

30

40

50

A & Above Baa Ba B SubInvesco EM Corp Composite JPM CEMBI Diversified

Source: Invesco, JPMorgan EMBI Monitor. Past performance is not a guide to future returns. Performance is gross of fees and is supplemental to the composite performance, which includes net of fee performance, in the full GIPS disclosures on slides 34 and 35. 1 Average Credit Quality (ACQ) is an internal measurement calculated by taking the highest rating of the 3 major rating agencies (S&P, Moody’s & Fitch) at a

security level. It is then changed into a numerical value, asset weighted and then calculated to be shown at the portfolio level in Moody’s format. Non-rated securities are not included in the average quality calculation. Information on non-rated securities is provided in the Quality Distribution chart, if applicable. ACQ calculations may vary across the industry and should not be the only factor in analyzing a portfolio. Please review all information carefully before investing.

*Inception date: 31/05/2011.

Credit Distribution (%)

Invesco EM Corporate Bond

Composite

JPM CEMBI Broad Div

Yield-To-Maturity 5.87 5.34

Average Duration 5.56 4.99

Average Maturity 7.93 6.82

Average Quality1 BBB- BBB

Number of Issuers 114 485

Annualised gross performance US$ (%)

26

Invesco Emerging Market Corporate Bonds Top country and industry weights versus benchmark*

27

12.8 12.6

9.99.2

6.86.2 6.1 5.9

4.6 4.45.6 5.3 5.5

4.1 3.82.4

5.5 5.24.2 4.0

0

2

4

6

8

10

12

14

Russia Brazil Mexico Peru Colombia Indonesia China United ArabEmirates

Turkey Chile

Invesco EM Corporate Bond Composite JPM CEMBI Broad Div

1 Does not total 100% due to rounding.Source: Invesco, JP Morgan; as of July 31, 2013.* Benchmark: The JP Morgan Corporate Emerging Market Bond Index - Broad Diversified is a global benchmark for US-dollar corporate emerging market bonds.

13

1

34

20

79

0

5

13

04

75

35

41

7

13

25

12

1

9

0

5

10

15

20

25

30

35

40

Consumer Diversified Financial Industrial Infra--structure

Metals &Mining

Oil & Gas Pulp &Paper

Real Estate TMT Transport Utilities

Invesco Emerging Market Corporate Bond Composite JPM CEMBI Brd Div

Top 10 Countries (%)

Industry (%)

Invesco Emerging Market Corporate Bonds - strategyInvesco Emerging Market team views

Sectors we like: Brazilian/Turkey/Singapore Bank Sub-

Debt– Favor credit where overly-pessimistic

perceptions differ from reality, and dislocations between senior and sovereign debt exist

Senior Debt of Top Tier Russian Financials– Favor financials with abundant access to low-

cost funding, strong sovereign support and superior relative value

Russian Telecoms – Favor telcos with ample geographical

diversification, defensive cash flows, potential for improving valuations, deleveraging trend, and attractive valuation

Mexican Corporates − Focus on selective names benefitting from

supportive political and macro backdrop. Mexico will clearly benefit from pick-up in US growth

Chinese Property and Industrials− Biased toward listed first tier developers with good

corporate governance, and either companies focused on the low end mass market in growing areas, and/or with good liquidity/diversification in first tier cities

Select Indian Credits- Focus on credits that are hedged against or actually benefit from benefit from weak INR but have sold-off

Select Commodity Names-Focus on credits with solid capital structure and liquidity that have sold off due to softer commodity prices regardless of the real impact on credit metrics

As of 31 August 2013. The opinions expressed are based on current market conditions and are subject to change without notice.

Opportunities: As a general theme, we are finding value in EM corporates relative to similarly rated US corporate debt

28

Appendix

Invesco Emerging Market Corporate Biographies

30

Jack Deino, CFA, Co-Head of Emerging Market Debt, Senior Portfolio ManagerJack Deino is Co-Head of Emerging Market Debt within Invesco Fixed Income. He oversees Emerging Market corporate bond research and trading for Invesco. Jack joined Invesco in 2006 in his current role. He has more than eighteen years of experience trading, analyzing and investing throughout the capital structure of emerging market companies. He assisted in the restructuring of diverse credits following the Argentine reorganizations and has held positions at Inverlat International, Daiwa Securities America, Zephyr Management, ORIX Capital Markets, and APS Financial Corporation. Jack earned a Bachelor of Arts in Latin American Studies from the University of Texas at Austin and is fluent in both Portuguese and Spanish. He is a CFA charterholder and is a member of the CFA Institute.

Mark Yu, CFA, AnalystMark Yu is an Analyst with Invesco Fixed Income. He is responsible for the analysis and investment recommendations for emerging markets corporate bonds. Mark joined the predecessor firm Morgan Stanley/Van Kampen in 2007 as an Analyst with the municipal investment team and assumed his current role with the emerging market team in 2011. Previously, he was with State Street as a Senior Associate modeling interest rate derivatives. Mark earned a Bachelor of Science degree in Engineering from the University of Science and Technology Beijing. He also earned a Masters of Science in Engineering from the University of Maryland and a Masters of Science in Financial Engineering from the University of Michigan. Mark holds the Chartered Financial Analyst designation (CFA) and is a member of the CFA Institute. He is fluent in Mandarin.

Security example of the composite:OGX – Avoidance of an underperforming credit

For illustrative purposes only.

31

Security example of the composite:Country Garden

For illustrative purposes only. All currency figures above are in USD.

Effective modeling is an important part of our investment process – we will generally forecast cash flow 5 years out

32

Income Statement 2012 ($) 2013 ($) … 2017($)Recognized GFA 6,160,000.0 6,574,659.5 6,734,716.8 As a percentage of contracted GFA 80.6% 85.0% 85.0%

Average Selling Price 1,077.9 1,036.7 1,113.0 As a percentage of ASP X M2 109.1% 100.0% 100.0%

Revenue 6,639.6 6,815.7 7,495.6 As a percentage of Cash Sales 88.0% 85.0% 85.0%

EBITDA 1,569.2 1,976.6 2,211.2 As a percentage of Revenues 23.6% 29.0% 29.5%

Cash Costs / Outflow 2012 ($) 2013 ($) … 2017($)Cash Construction Cost (3,804.0) (4,369.0) (4,739.5) As a percentage of Period Cash Revenues ‐46.5% ‐53.0% ‐53.0%

Land Premium Payable (1,505.8) (1,896.0) (1,967.4) As a percentage of Period Cash Revenues ‐18.4% ‐23.0% ‐22.0%

SG&A (332.9) (577.0) (626.0) As a percentage of Period Cash Revenues ‐4.1% ‐7.0% ‐7.0%

Interest Expense (396.3) (395.1) (402.1) As a Percentage of Gross Debt ‐7.3% ‐7.3% ‐7.3%

Cash Taxes (792.5) (164.9) (178.9) As a percentage of Period Cash Revenues ‐9.7% ‐2.0% ‐2.0%

Dividends (404.2) (164.9) (178.9) % Change ‐4.9% ‐2.0% ‐2.0%

Increase/Decrease in Debt 761.1 25.6 ‐ Others (792.51) (164.87) (178.85) As a percentage of Period Cash Revenues ‐9.7% ‐2.0% ‐2.0%

Cash Flow 2012 ($) 2013 ($) … 2017 ($)Free Cash Flow 918.6 537.3 671.0 % Change ‐192.6% ‐41.5% 3.5%

Free Cash Flow 918.6 537.3 671.0

Security example of the composite:Country Garden

Summary Overview

Issuer - Country Garden Holdings Company Limited

Guarantor - Each of current subsidiaries and certain future subsidiaries will guarantee the new notes with unconditional guarantees. However, PRC subs and Power Great Enterprises Limited (employee stock option sub) will not guarantee the notes

Subsidiary Debt Cap - Cannot exceed 15% of total assets

Description - 7.5% Senior Notes due 2023.

Ranking - Pari Passu with Senior Unsecured

Change of Control - Repurchase at 101 plus accrued interest.

Permitted Holders - Mr. Yeung Kwok Keung, daughter Yang Huiyan and affiliates must own at least 80% of capital and voting stock

Sovereign Rating - Baa1/A/BBB, STABLE/STABLE/STABLE

Issuer Rating - Ba3/BB-/BB-, stable/STABLE/STABLE

Governing Law - New York

Exchange Listed - Singapore Exchange Securities Trading Limited

Rating Outlook

Our positive outlook reflects Country Garden's strong pre-sales performance in the past year. We believe the company can sustain this level of sales, given China's stabilizing property market in the next 12-18 months.

The outlook also takes into account Country Garden's efficient business model, specifically, its turnover of inventory, which is one of the quickest amongst Ba-rated developers.

As at 30 June 2013. For illustrative purposes only.

33

Invesco Emerging Market Corporate BondsSchedule of investment performance as of 31 Dec 2012 (1 of 2)

Invesco Worldwide claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Invesco Worldwide has been independently verified for the periods 1st January 2003 thru 31st December 2011. The legacy firms that constitute Invesco Worldwide have been verified since 2001 or earlier. The verification reports are available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

Gross Rate ofReturn

(%)

Net Rate ofReturn

(%)

BenchmarkReturn

(%)

Composite 3-Yr St Dev

(%)

Benchmark 3-Yr St Dev

(%)

Numberof

Portfolios

Composite Assets

(USD millions)

Total FirmAssets

(USD billions)

Composite Dispersion

(%)

2012 22.55 20.49 15.01 n/a n/a 1 120.4 497.1 n/a2011 0.32 (0.48) (1.24) n/a n/a 1 11.0 479.8 n/a

Annual Compound Rates of Return Ending 31 Dec 2012:

1 Year 22.55 20.49 15.01Since Inception (31/05/2011) 13.94 12.15 8.38

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Invesco Emerging Market Corporate BondsSchedule of investment performance as of 31 Dec 2012 (2 of 2)Notes:1. Invesco Worldwide (“The Firm”) manages a broad array of investment strategies around the world. The Firm comprises US-based Invesco Advisers,

Inc. and all wholly owned Invesco firms outside of North America. All entities within the Firm are directly or indirectly owned by Invesco Ltd. GIPS-compliant firms whose assets are managed by subsidiaries of Invesco Ltd. are Invesco Trimark Ltd. and Atlantic Trust. Invesco Senior Secured Management, Inc. Invesco Private Capital, Inc. and Invesco PowerShares Capital Management LLC are also affiliates of the Firm. Each is an SEC-registered investment advisor and is marketed as a separate entity. Invesco Great Wall Fund Management Co. Ltd (IGW) is a fund management company established under China Securities Regulatory Commission’s approval. Their assets are excluded from total Firm assets. On Dec. 31, 2009, Invesco Aim Advisors, Inc. (AIM), Invesco AIM Capital Management, Inc. (ACM), Invesco Aim Private Asset Management, Inc. (APAM) and Invesco Global Asset Management (N.A.), Inc. merged into Invesco Institutional (N.A.), Inc., which was then renamed Invesco Advisers, Inc. Prior to 2010, AIM, ACM and APAM were part of separate GIPS firms and not included in the Firm. On June 1, 2010, Invesco acquired Morgan Stanley Investment Management’s (MSIM) retail asset business, including Van Kampen Investments. Through this transaction, Invesco acquired approximately US$119 billion in assets under management. Prior to the acquisition, MSIM was GIPS compliant and verified by an independent verifier through Dec. 31, 2008. Assets under management prior to 2010 have not been restated to reflect either the above-referenced investment advisor merger or the MSIM acquisition. Composite history and Firm assets prior to Jan. 1, 2010, are those of its respective components.

2. The Composite includes all discretionary fee paying portfolios that are managed to the strategy of emerging market corporate bonds. The benchmark for this composite is the JP Morgan CEMBI Broad Diversified Index. The objective of portfolios allocated to this composite is to achieve a high income yield and long-term capital appreciation by investing primarily in debt securities of emerging market corporate issuers. Portfolios intend to invest in securities and financial derivative instruments within the investment universe which is defined as all cash, debt securities (including asset backed securities), financial derivative instruments on debt and credit markets and all currencies worldwide. Companies in emerging markets shall mean: (i) companies having their registered office in an emerging market, (ii) companies established or located elsewhere but carrying out their business activities predominantly in emerging markets or (iii) holding companies the interests of which are predominantly invested in equity of companies having their registered office in an emerging market.

3. The Composite returns are benchmarked to the JP Morgan CEMBI Broad Diversified Composite Index. The benchmark is used for comparative purposes only and generally reflects the risk or investment style of the product. Investments made by the Firm for the portfolios it manages according to respective strategies may differ significantly in terms of security holdings, industry weightings, and asset allocation from those of the benchmark. Accordingly, investment results and volatility will differ from those of the benchmark.

4. Interest rate futures, options, swaps, and forwards may be used to replicate cash investments, manage yield curve or other risk positions and to pursue investment strategies generally allowed by the Composite. Derivatives must be included in the duration calculations of portfolios in the Composite and must abide by the duration, credit quality, and all other constraints of Composite accounts. Funds in this composite are allowed to hedge the currency exposure for both hedging and return enhancement.

5. Valuations and portfolio total returns are computed and stated in US Dollars. The firm consistently values all portfolios each day on a trade date basis. Portfolio level returns are calculated as time-weighted total returns on daily basis. Accrual accounting is used for all interest and dividend income. Past performance is not an indication of future results.

6. Composite dispersion is measured by the standard deviation across asset-weighted portfolio returns represented within the composite for the full year. The three-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36 months. The standard deviation is not presented when there is less than 36 months.

7. Gross-of-fee performance results are presented before management and custodial fees but after all trading commissions. Net-of-fee performance results are calculated by subtracting of management, registrar, custody, trustee and audit fees.The management fee schedule is as follows:

65 basis points on the first US$50 million55 basis points on the next US$50 million50 basis points thereafter.

8. Effective January 1, 2011 the minimum portfolio size for the Composite is US$5,000,000.9. The composite creation date is 14 July 2011. 10. Foreign currency exchange rates for calculation of the composite and benchmark are based on the WM/Reuters Closing Spot Rates TM that are fixed

at approximately 4:00 p.m. London time.11. A complete list of composite descriptions is available upon request. Polices for valuing portfolios, calculating performance, and preparing

compliant presentations is available upon request.

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Descriptions of indices

As of 31 March 2013.

Emerging Markets Bond Index Global (EMBI Global): The EMBI Global tracks total returns for US-dollar-denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans, Eurobonds.

Emerging Markets Bond Index Global Diversified (EMBI Global Diversified): The EMBI Global Diversified is a uniquely-weighted version of the EMBI Global. It limits the weights of those index countries with larger debt stocks by only including specified portions of these countries’ eligible current face amounts of debt outstanding. The countries covered in the EMB Global Diversified are identical to those covered by the EMBI Global.

EURO Emerging Markets Bond Index Global (EURO EMBIG): The EURO Emerging Markets Bond Index Global (EURO EMBIG) tracks total returns for euro-denominated, straight fixed coupon instruments issued by emerging market sovereign and quasi-sovereign entities.

Government Bond Index-Emerging Markets (GBI-EM): The GBI-EM is the first comprehensive, global local emerging markets index, and consists of regularly traded, liquid fixed-rate, domestic currency government bonds to which international investors can gain exposure. Variations of the index (GBI-EM Global, GBI-EM Global Diversified, GBI-EM Diversified) are available to allow investors to select the most appropriate benchmark for their objectives. GBI-EM Global is an investable benchmark that includes only those countries that are directly accessible by most of the international investor base. GBI-EM Global Diversified is a uniquely-weighted version of the GBI-EM Global.

Corporate Emerging Markets Bond Index (CEMBI): The CEMBI tracks total returns of US-dollar-denominated debt instruments issued by corporate entities in emerging market countries. Two variations are available: CEMBI Broad and CEMBI. The CEMBI Broad is the most comprehensive corporate benchmark followed by the CEMBI, which consists of an investable universe of corporate bonds. Both indices are also available in Diversified versions.

Indonesia Iraq Ivory CoastJamaicaJordan KazakhstanLebanonLatviaLithuaniaMalaysia Mexico MongoliaMoroccoNamibiaNigeriaPakistan Panama ParaguayPeru

EURO EMBIG, by Country

Brazil Bulgaria China Croatia Hungary Lithuania Mexico Morocco Philippines Poland RomaniaRussia South Africa Turkey Ukraine Venezuela

GBI-EM Broad/GBI-EM Broad Div, by Country

Argentina Brazil Chile China Colombia Hungary India Indonesia Malaysia Mexico Peru PhilippinesPoland Russia South Africa Thailand Turkey

CEMBI, by Country

Brazil ChileChinaCzech RepColombia Egypt Hong Kong HungaryIsrael India IndonesiaJamaica KazakhstanKoreaKuwaitMacauMexico MalaysiaMongoliaNigeriaPeru

AngolaArgentina AzerbaijianBelizeBelarus Brazil Bulgaria Chile China Colombia Costa RicaCroatiaDominican Rep Ecuador Egypt El Salvador Gabon Georgia Ghana GuatelmalaHungaryIndia

EMBI Global/EMBI Global Div, by Country

PhilippinesPolandQatarRussia SingaporeSouth AfricaTaiwan ThailandTurkeyUnited Arab EmiratesUkraineVenezuela

The Philippines Poland RomaniaRussia Serbia SenegalSouth Africa Sri Lanka Turkey Ukraine Uruguay Venezuela Vietnam

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IMF definitions of advanced economies and emerging and developing economies

Advanced economiesComposed of 34 countries: Australia, Austria, Belgium, Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong SAR, Iceland, Ireland, Israel, Italy, Japan, Korea, Luxembourg, Malta, Netherlands, New Zealand, Norway, Portugal, San Marino, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan Province of China, United Kingdom, and United States.

Emerging and developing economiesComposed of 151 Countries: Algeria, Angola, Antigua and Barbuda, Argentina, Armenia, Azerbaijan, The Bahamas, Bahrain, Bangladesh, Barbados, Belarus, Belize, Benin, Bhutan, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Brunei Darussalam, Bulgaria, Burkina Faso, Burundi, Cambodia, Cameroon, Cape Verde, Central African Republic, Chad, Chile, China, Colombia, Comoros, Democratic Republic of the Congo, Republic of Congo, Costa Rica, Côte d'Ivoire, Croatia, Djibouti, Dominica, Dominican Republic, Ecuador, Egypt, El Salvador, Equatorial Guinea, Eritrea, Ethiopia, Fiji, Gabon, The Gambia, Ghana, Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Hungary, India, Indonesia, Iran, Iraq, Jamaica, Jordan, Kazakhstan, Kenya, Kiribati, Kosovo, Kuwait, Kyrgyz Republic, Lao P.D.R., Latvia, Lebanon, Lesotho, Liberia, Libya, Lithuania, FYR Macedonia, Madagascar, Malawi, Malaysia, Maldives, Mali, Marshall Islands, Mauritania, Mauritius, Mexico, Micronesia, Moldova, Mongolia, Montenegro, Morocco, Mozambique, Myanmar, Namibia, Nepal, Nicaragua, Niger, Nigeria, Oman, Pakistan, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Poland, Qatar, Romania, Russia, Rwanda, Samoa, São Tomé and Príncipe, Saudi Arabia, Senegal, Serbia, Seychelles, Sierra Leone, Solomon Islands, South Africa, South Sudan, Sri Lanka, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sudan1, Suriname, Swaziland, Syria2, Tajikistan, Tanzania, Thailand, Timor-Leste, Togo, Tonga, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Tuvalu, Uganda, Ukraine, United Arab Emirates, Uruguay, Uzbekistan, Vanuatu, Venezuela, Vietnam, Yemen, Zambia, and Zimbabwe.

1 Data for 2011 exclude South Sudan after July 9. Data for 2012 and onward pertain to the current Sudan.2 Data are excluded from 2011 and onward due to the uncertain political situation. Source: World Economic Outlook Database, the most recent date available; the database is updated in April and October each year.

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Explore Intentional Investing with Invesco

Manage Investments

Our dedicated investment professionals search the world for the best opportunities, and each investment team follows a clear, disciplined process to build portfolios and mitigate risk.

Provide choices

We manage investment strategies across all major asset classes and deliver them through a variety of vehicles to meet your needs.1

Connect with our clients

We’re committed to giving you the expert insights you need to make informed investing decisions, and we are well-equipped to provide high-quality support for investors and advisors.

1 Not all investors are eligible to invest in each investment vehicle.

At Invesco, all of our people and all of our resources are dedicated to helping investors achieve their financial objectives. It’s a philosophy we call Intentional Investing®, and it guides the way we:

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Important information

This document is for Professional Clients and Financial Advisers in Continental Europe and is not for consumer use. Please do not redistribute this document.Opinions and forecasts are subject to change without notice. Whilst great care has been taken to ensure that the information is accurate, no responsibility can be accepted for any errors, mistakes or omissions or for any action taken in reliance thereon.

Data as at 30 June 2013, unless otherwise stated. Where Invesco has expressed views and opinions, these may change. The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Past performance is not a guide to future returns. Where securities are mentioned in this document they do not necessarily represent a specific portfolio holding and do not constitute a recommendation to purchase or sell. Further information on our products is available using the contact details below.

www.invescoeurope.com

This document is issued in Switzerland by Invesco Asset Management (Schweiz) AG, Stockerstrasse 14, CH-8002 Zürich, who acts as representative for the funds distributed in Switzerland. Paying agent for the funds distributed for sale in Switzerland: BNP PARIBAS SECURITIES SERVICES, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002 Zurich.

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