Invesco Secure Bond

Performance Update: 1 October 2011 to 31 December 2011

Performance Commentary

The fourth quarter of 2011 was a weak period for the BNP Paribas Millennium Index as markets were volatile throughout the quarter. Once again, events in the Eurozone dominated market movements. After heavy selling in equity and commodity markets in the third quarter, investors regained their risk appetite in the fourth quarter. The MSCI World Index (in dollar terms) of shares, the primary benchmark for investment portfolios, rose 7.11% but finished the year down -7.62%. Performance in world stock markets was mixed with the Japanese NIKKEI 225 losing -2.82%. Volatility (as measured by the VIX index) started the quarter at a very high level of 42.96% and remained high until December. In December it decreased significantly and finished at 23.40%. The negative performance for the underlying investment strategy was in a large part due to losses due to short positions on Chinese and European Equities in October. The index recorded a positive performance of 1.49% in August mostly benefited from long positions on emerging market equities and U.S. equities and from its short positions in European equities. In December the index recorded a small positive performance mostly benefited from long positions on American equities and from its short positions in European equities.

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For further information please contact Paddy Swan (pswan@invesco.ie) or James Finucane (jfinucane@invesco.ie).