Introducing PowerShares® Funds

Introducing PowerShares® Funds
By: Allen Teska CFP, CIM, FCSI June 12th, 2010 This presentation was not produced by Invesco PowerShares Capital Management LLC For advisor use only. No portion of this communication may be reproduced or distributed to members of the public.

Specialized investment capabilities globally
Invesco Aim Investment focus: U.S., international and global equities Invesco Global Strategies Investment focus: Global equity (global, non-U.S., and emerging market equities) Quantitative equity (quantitative active, enhanced and long/short strategies) Global asset allocation (tactical asset allocation, alternative beta and multi-asset class solutions Invesco Perpetual Investment focus: U.K. equities, fixed income and European equities Invesco Private Capital Investment focus: Fund-of-funds and venture capital private equities Invesco Trimark Investment focus: Canadian equities, fixed income and global value Invesco Asia-Pacific Investment focus: Asian Ex-Japanese, greater Chinese, Japanese and Australian equities Being a part of such a large and stable organization has provided us with numerous other advantages; the three of which I believe are paramount and relevant to you are 1) the financial resources to continue to add to the investment talent of the Trimark Team which is now comprised of 33 investment professionals by far the most we have ever had 2) allows us to continue to increase our advisor support on many different levels including increasing our wholesaler coverage, expanding our Professional Development education events and webcasts such as today. 3) As you will see on your screens Invesco has 11 distinct investment centres around the world and this provides us with one of the most diversified product offerings around. What you will continue to see from us in the future is Invesco Trimark selectively expanding our product offering in Canada to include additional products from other investment centres that compliment our existing product line-up. A great example of this is the recent launch of AIM Global Balanced Fund which includes the investment expertise of two out of Invesco’s 11 investment centres namely the EQV discipline from Invesco Aim and the fixed income expertise from Invesco’s Worldwide Fixed Income Team and of the introduction of the Invesco PowerShares Funds that will be the focus of today’s conversation. Invesco Worldwide Fixed Income Investment focus: Money market, stable value, global fixed income and alternatives/financial structures Invesco PowerShares Investment focus: ETFs Invesco Real Estate Investment focus: Global direct real estate investing and public real estate investing WL Ross Investment focus: Distressed and restructuring private equities Atlantic Trust Investment focus: High-net-worth multimanagement The listed investment centres do not all provide products or services that are available in Canada, nor are their products and services available on all platforms.

Our business Looking forward from a position of strength
And maybe at this point you may be asking yourself, so what is happening at Invesco? And why is my “trimark” wholesaler is here talking to me about ETFs? As you know, we have been Invesco Trimark in Canada for over a year now. And globally, we have leveraged the strength of the Invesco brand and anchored this locally with recognized and respected brands. Being a part of such a large and stable organization has provided us with numerous other advantages that you can directly identify with. This map here represents the 11 investment centres that form Invesco globally. In Canada, for 29 years, we have partnered with you and offer you enduring financial and business solutions. Over the years, we have evolved to bring you more complementary investment disciplines from our global operations. And we will continue to innovate and deliver new solutions that are relevant to your business. You can now access investment solutions from 7 investment centres (those identified with a Canadian leaf). [click to animate the 7 investment centres]. So today, you can of course access Trimark, but also, AIM with their Earnings, Growth & Quality approach to investment, Invesco Worldwide Fixed Income, Real Estate, Global Strategies, Perpetual (the largest mutual fund company in the U.K. – even larger than Fidelity – and of course: PowerShares, one of the leading ETF providers in the world, with 120 products. What does this mean for you? We’re tapping into the strengths of our global reach to bring you relevant solutions you can use -- There is no reason why you should not be doing business with Invesco. Let’s bring it back closer to home in Canada, where being part of Invesco has allowed us to continue to support our core Canadian business – the Trimark family of funds. During the 2008/2009 market downturn, a time when many investment management firms in Canada and around the world were forced to lay off investment professionals, we were actually hiring. In fact, we’ve hired 5 veteran portfolio managers and 7 equity analysts on the Trimark team over the last two years. Let me be clear - we could not have made this significant investment without the full commitment of Invesco to our business and the Trimark team in Canada. This is, and always will be the core of our business in Canada. The Trimark team is now more than 30 people strong, making it the deepest team we’ve ever had. Millions of Canadians have entrusted their savings to the Trimark investment discipline for over 27 years, and we’re well positioned to continue serving you and your clients well with high quality, prudent money management for generations to come. During the worst of the economic and market downturn in 2008, the focus of the Trimark discipline on high quality, well-managed companies – companies that could not only survive but profit from the inevitable stumbles of inferior competitors – helped us to have 80% of our assets under management ranked in the 1st and 2nd quartiles for the year. More importantly, our portfolio managers capitalized on what was perhaps a once in a generation opportunity to purchase stakes in some of the world’s best businesses at significantly discounted prices. We believe that this will set the stage for strong growth in our portfolios for you and your clients over the years to come – we are very well positioned. And what about 2009? Beginning in March, the markets snapped back from extremely depressed valuations in a rally that seemed nearly as sudden in moving up as it was in falling during the crash. And yet, not all areas of the market, as is often the case, have participated equally. The most outsized returns have come from those segments of the market that were most severely punished in the downturn – primarily lower quality companies, and also small and mid cap companies. And how have we performed? Has the Trimark discipline done its job? As you know, Trimark managers invest first and foremost in businesses that are high quality, with sustainable competitive advantages. So we’re not going to participate in any low quality rally. But, we do have several Trimark funds with a small or mid cap focus – and in every case, these funds have ranked in the 1st or 2nd quartile for 2009, delivering 1-year returns for our investors in the 40% to 60% range. Yes, make no mistake the Trimark discipline is alive and well. Yes, some of our funds that have more of a larger cap focus have lagged in this market, but we firmly believe that they are extremely well positioned for long term outperformance going forward, given the opportunities our managers capitalized on. So whether it is our core business or our new offerings …As markets evolve we are ready to bring relevant offerings – and this is how we came to bring the PowerShares ETFs to the Canadian marketplace. Denotes availability in the Canadian marketplace.

1 2 3 Agenda Growth of ETFs and Invesco PowerShares
PowerShares® Funds and their benefits So, today’s agenda… 3 Implementing PowerShares® Funds into your business

ETF growth and drivers Lower cost Tax efficient1
Access to specialized markets Client demand Advisor adoption ETFS have known strong and rapid growth over the last 10 years. Let me ask you this: who here had questions on ETFs 10 year ago? How about 5 year ago? How about now? Some of the contributing factors: Lower cost Tax-efficiency1 Access to specialized markets Advisor adoption Source: Barclays Global Investors 1 Relative to mutual funds. Invesco Trimark does not offer tax advice. Please consult your own tax advisor for information regarding your own tax situation.

Act like an institutional investor Institutional usage of ETFs
More than 1,950 U.S. institutions report holding at least one exchange-traded product (ETP) as of December 31, 2008 413 hedge fund managers 83 mutual fund complexes 37 insurance companies 24 pension funds 11 endowments/foundations 15 of the 20 largest hedge funds use ETFs Five of the six largest U.S. endowments report ETF usage among their top 10 holdings Harvard Management Company lists eight ETPs among top 10 equity holdings 17 of the 20 largest mutual fund complexes use ETFs in their portfolios Source: State Street Global Advisors; Bloomberg. Data as at December 31, Based on 13F-filings.

What are ETFs? Combine features of mutual funds and individual stocks
Provide exposure to a group of securities through the purchase of a single share Trade on all major exchanges at market-determined prices and can be bought and sold at any moment during market hours through brokerage accounts ETFs are quite simplistically a vehicle that holds a basket of underlying securities – not unlike the traditional mutual fund you may be more familiar with. One of the big difference is that it trades on the stock market and can be bought & sold at any moment during market hours. ETFs have been available only through brokerage accounts.

History of ETFs The first U.S. ETF was created in 1993 to mirror the price and yield of the S&P 500 Index1 Later, ETFs were modeled after narrower indices, tracking specific sectors, commodities or regions Most recently, ETFs have been modeled after “intelligent indices” History (comments from wikipedia.com) ETFs had their genesis in 1989 with , an S&P 500 proxy that traded on the American Stock Exchange and the Philadelphia Stock Exchange. This product, however, was short-lived after a lawsuit by the Chicago Mercantile Exchange was successful in stopping sales in the United States.[9] A similar product, Toronto Index Participation Shares, started trading on the Toronto Stock Exchange in The shares, which tracked the TSE 35 and later the TSE 100 stocks, proved to be popular. The popularity of these products led the American Stock Exchange to try to develop something that would satisfy SEC regulation in the United States.[9] Nathan Most, an executive with the exchange, developed Standard & Poor's Depositary Receipts (NYSE: SPY), which were introduced in January 1993.[10] Known as SPDRs or "Spiders," the fund became the largest ETF in the world. In May 1995 they introduced the MidCap SPDRs (NYSE: MDY). Barclays Global Investors, a subsidiary of Barclays plc, entered the fray in 1996 with World Equity Benchmark Shares, or WEBS, subsequently renamed iShares MSCI Index Fund Shares. WEBS tracked MSCI country indexes, originally 17, of the funds' index provider, Morgan Stanley. WEBS were particularly innovative because they gave casual investors easy access to foreign markets. While SPDRs were organized as unit investment trusts, WEBS were set up as a mutual fund, the first of their kind.[11] [12] In 1998, State Street Global Advisors introduced the "Sector Spiders", which follow the nine sectors of the S&P 500.[13] Also in 1998, the "Dow Diamonds" (NYSE: DIA) were introduced, tracking the notable Dow Jones Industrials Average. In 1999, the influential "cubes" (NASDAQ: QQQQ) were launched attempting to replicate the movement of the NASDAQ-100. Since then ETFs have proliferated, tailored to an increasingly specific array of regions, sectors, commodities, bonds, futures, and other asset classes. As of May 2008, there were 680 ETFs in the U.S., with $610 billion in assets, an increase of $125 billion over the previous twelve months.[14] 1 Source: “Actively Managed Exchange-Traded Funds,” sec.gov.

The benefits of ETFs Low expenses* Portfolio transparency
Near instant liquidity (NAV every 15 seconds) Trade at or near NAV Long or short (including downtick) Purchase on margin Flexible: Market/Stop/Limit orders Tax-efficient structure1 Options2 Here we have the benefits of ETFs. Most would agree low expenses and portfolio transparency would be 2 prominent features your clients may be more aware of. ETFs, by nature of being a product listed on the stock market, do have more “sophisticated” features as well – such as going long or short and margin purchases for example, but most may agree with me that that’s probably not where the appeal of ETFs would lie for most of your clients. * Ordinary brokerage commissions apply. 1 Relative to mutual funds. Invesco Trimark does not offer tax advice. Please consult your own tax advisor for information regarding your own tax situation. 2 Options may not be suitable for all investors. Shares are not individually redeemable and owners of the shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in creation units only, typically consisting of 50,000 shares.

Relationship between ETFs and indices
Index ETF Investors Licensing agreement Index owner ETF sponsor Such as: Research Affiliates® (FTSE RAFI) Standard and Poor’s (S&P) Morgan Stanley Capital International (MSCI) Indxis Such as: PowerShares (Invesco) iShares (Blackrock) SPDRs (State Street) Examples of what is an index owner and ETF sponsor will be animated – click twice to bring up both examples. So, what do we have here? Simple illustration of how the relationships between index owners and ETFs work. So on the left, we begin with indices. You’ll recognize names like Standard & Poor – who gives us the S&P indices, or Morgan Stanley Capital International (MSCI from which we often quote their MSCI World). Other index owner or index providers would be Research Affiliates – maybe not a household name for you right now, but a name that is being recognized more and more for their methodologies, especially in the institutional world. The index owner then enters in licensing agreements with distribution firms (ETF sponsors) – like the PowerShares, iShares (Blackrock) etc.

You can access PowerShares ETFs through a number of solutions
Through the NYSE for those IIROC licensed As a component of our Retirement Payout Portfolios (RPPs) Available through our new PowerShares® Funds

Innovative structure Innovative structure U.S.-listed ETF +
mutual fund U.S.–listed ETFs Lower cost Portfolio transparency1 Fully invested Provide access to wide range of markets and sectors More tax-efficient than Canadian-listed ETFs 1 ETFs disclose their full portfolio holdings daily PowerShares® Funds Mutual funds Familiar to investors and well-established in marketplace Enhanced tax efficiency when offered in a mutual fund corporation Easy to purchase (e.g., through pre-authorized chequing plans) Typically purchased in Canadian dollars When we created the PowerShares funds, we did it based on what advisors told us they wanted. Keeping the most prominent features of ETF – lower cost, transparency, access and combining with another benefit rich vehicle – the mutual funds. When combined together – you get the PowerShares Funds.

PowerShares® Funds structure
Structure with U.S.-listed ETF Structure without U.S.-listed ETF PowerShares® Funds PowerShares® Funds Invest in ETFs Replicate PowerShares ETF Replicates Index Index ¥ U.S.-dollar currency hedging on all PowerShares® Funds that purchase underlying U.S.-listed ETFs as well as PowerShares High Yield Corporate Bond Index Fund.

PowerShares® Funds compared to TSX-listed ETFs
PowerShares® Funds TSX-listed ETFs Low cost ü Portfolio transparency Access/diversification Intra-day liquidity Trade at NAV Sell short Limit and stop orders Listed options available Trade in C$ Available to MFDA and IIROC Compensation – Advisor Grid payout PAC, DRIPs and SWPs Small subsequent transactions Client services support Here we have another look at the features of ETF - compared against Canadian listed ETF this time. While on the funds you do not have the ability to trade in and out daily, we would argue that most investors and most of your clients don’t fit in that day traders philosophy and are looking for longer term positions. An compromise with the PowerShares funds – we have a 30 day transfer policy (when compared to the typical 90 days on our regular mutual funds).

Introducing… Full suite of PowerShares® Funds
Fixed income PowerShares 1-5 Year Laddered Corporate Bond Index Fund PowerShares Real Return Bond Index Fund PowerShares High Yield Corporate Bond Index Fund Dividend income PowerShares Diversified Yield Fund 17 PowerShares® Funds in total PowerShares Canadian Preferred Share Index Class PowerShares Canadian Dividend Index Class PowerShares Global Dividend Achievers Fund 10 corporate class funds 7 trust funds Fundamentals Weighted® PowerShares FTSE RAFI® Canadian Fundamental Index Class PowerShares FTSE RAFI® Emerging Markets Fundamental Class PowerShares FTSE RAFI® U.S. Fundamental Fund PowerShares FTSE RAFI® Global+ Fundamental Fund Our new launch of suite 2 has complete offering of core and satellite mandates totaling 17 PowerShares Funds. 10 of these mandates are in the corporate structure and 7 are offered as mutual fund trusts. We have bucketed the full suite into income solutions Can you explain why some funds are part of the corporate class structure and some are mutual fund trusts? When deciding between offering a product as a mutual fund trust or as part of a mutual fund corporation, we assess the situation on a case-by-case basis. Mutual fund trusts and corporations each have unique tax characteristics and rules, so we have to assess which legal structure is best suited for each new Product. Generally speaking, all Canadian equity funds and foreign equity funds with low dividend yields are best suited for corporations, while traditional bond funds and balanced funds are less ideal or even problematic from a tax perspective. Funds in the corporate class structure are only permitted to distribute income in the form of Canadian dividends and capital gains to investors. While interest income and foreign dividends help to grow the NAV of a fund, for tax purposes, they are trapped in the corporation and do not flow through to investors in the form of distributions like they do in mutual fund trusts The trapped interest income and foreign dividends is retained within the corporation and is offset with expenses of the corporation (the collective MERs). If the retained income exceeds the expenses available, then the corporation is required to pay tax on the excess income. Because PowerShares funds have lower MERs than traditional mutual funds, we have to more selective as to which funds are offered in the corporation PowerShares® Funds that generate a high level of income and/or foreign dividends were excluded from the corporate class structure to avoid the potential for a tax liability within the corporation Is someone wants to dig deeper afterwards: While none of our share classes within Invesco Trimark Corporate Class Inc has ever experienced this scenario since its inception in 1996, we prudently manage the tax position of the corporation to mitigate against this risk If this were to happen - For open account investors, the corporation essentially pays tax on behalf of investors (the tax payable is essentially the same compared to owning a trust version of the same fund). For registered investors, they will pay tax sooner than they would otherwise have to, thereby losing some of the tax deferral benefits of investing in a registered account. They would pay some tax now versus paying at the time they deregister their assets. PowerShares Golden Dragon China Class Intelligent access PowerShares India Class PowerShares Global Agriculture Class PowerShares Global Gold and Precious Metals Class PowerShares Global Water Class PowerShares Global Clean Energy Class

PowerShares® Funds and their benefits
Intelligent indices and access Enhanced portfolio risk management Greater tax efficiency in a lower-cost solution Intelligent indices and access Enhanced portfolio risk management Greater tax efficiency in a lower-cost solution

PowerShares Real Return Bond Index Fund
Fund facts Series A MER: 0.95%1 Trailer: 0.50% Series F MER: 0.37%1 Category/Asset class: Fixed income (Canadian Inflation Protection)2 Asset class size: $1.7B3 Median Fund MER in category: 1.89%4 Fee reduction against median: % Distributions: Income: semi-annually Capital gains: annually Index information Duration: Current gross yield: 1.48%5 Source: PC Bond. As at December 31, 2009 Why invest? Hedges against inflation over the long term Low credit risk of federal government default Provides valuable diversification in a fixed-income portfolio Provides a cost-effective way to access Real Return Bonds Index: DEX Real Return Canada Bond Index™ Index requirements Government of Canada Real Return Bonds Constituents with maturity greater than one year DEX Real Return Canada Bond Index™ has 6 constituents – all nice and liquid. Diversification: Corporate bonds offer the opportunity to invest in a variety of industry sectors. Corporate bonds can improve the diversification to an equity portfolio as well as diversify a fixed-income portfolio of government bonds or other fixed-income securities. Steady income: Corporate bonds provide a source of steady income for all types of investment portfolios. Most corporate bonds pay on a fixed semi-annual rate schedule. Attractive yields: Corporate bonds tend to provide higher yields than comparable maturity government bonds (5.57% to 4.56% for 10-year maturities) [UPDATE] due to their higher credit risk. In addition, when short-term yields are so close to those of long-term yields, it simply may not make sense to commit to long-term bonds. A gain of an extra 20 or 30 basis points doesn't quite compensate for the increase in volatility from longer-term bonds. Inflation protection – RRBs provide a good hedge against inflation by having their principal and coupons directly linked to changes in the Consumer Price Index (CPI). When the CPI rises, an RRB's principal is adjusted up, which also increases its semi-annual coupon payment because it is paid on the higher principal. Note, when the CPI drops in periods of deflation, the principal adjusts down, reducing the coupon payment too. Government guaranteed – The principal repayment and coupon payments are guaranteed by the Government of Canada, which is effectively the highest credit quality. There is essentially no risk with any investment held to maturity – every aspect of the investment is guaranteed, regardless of the size of the investment. With Government of Canada Bonds, there is also a high degree of liquidity. Source of income – Interest from RRBs is paid semi-annually. They carry a modest coupon rate (usually between 1% and 2.5%), but the real benefit is that the price will be adjusted systematically to keep pace with inflation. [CONFIRM tax treatment of adjustment] It is important to note that RRBs are best held in non-taxable accounts, as the inflation adjustments are made through additions to the principal amount. This means that they could create larger capital gains when sold, so keep the RRBs in your RSP or TFSA and you'll be adding some solid inflation-fighting punch with the security that only Canadian government bonds can provide. Diversification – RRBs are designed to be a core component of a fixed-income portfolio for long-term investors seeking a cost-efficient vehicle that generates interest income linked to inflation. RRBs are a good complement to a typical portfolio of bonds and not a replacement as the bonds' long-term maturities make them more sensitive to changes in interest rates. This can lead to a higher degree of volatility in the short term. PowerShares Real Return Bond Index Fund tracks the performance of the DEX Real Return Canada Bond Index. The index invests in Canadian federal real return bonds. Portfolio diversification – Adding RRBs is among the most direct ways of hedging against inflation, which makes this Fund a good complement to a typical portfolio of bonds and other types of bond funds. Lower-cost solution – We think investing in PowerShares Real Return Bond Index Fund is one of the best options for accessing Canadian RRBs due to its low fees. Real Return Bonds are well suited to passive fund management because of the low number of issues, which limit the ability for an active manager to add value in this category. Expense control is always important, but is significantly more important with bonds than with equities, especially in low interest-rate environments when bond yields are low. PowerShares Real Return Bond Index Fund has the lowest management fees¹ (Source required) among mutual funds in the Canadian Inflation Protected Fixed Income category. 1 As the Funds have not yet reach a full financial year, these MER are estimated. Please see “Important information – MER disclosure” slide at the end of the presentation for more details. Subject to change. It is Invesco’s intention to absorb operating expenses so that the operating expense portion of the MER for these Funds does not exceed 15 bps for Series A and 10 bps for Series F, exclusive of taxes. Invesco may increase that limit in its discretion. Fees may fluctuate depending on USD fluctuation and are subject to change as the underlying ETF charges its fees in USD and the Fund converts that expense to Canadian dollars for the purposes of calculating the MER. It is possible that the ETF fee, expressed as a percentage of the Fund’s assets, may be greater or less than the stated management fee rate for the ETF, depending on the USD-Cdn dollar exchange rate. We do not expect that these differences will be material. 2 Source: Investment Funds Institute of Canada (IFIC). As at October 31, 2009. 3 Source: IFIC. As at October 31, 2009. 4 As at October 31, Source: PALTrak. 5 Does not include principal adjustments (up or down), which are included in taxable income (as interest) at the time of the adjustment.

Less costly with greater tax efficiency Pricing – Series F
5 bps incremental fee over underlying ETF, expenses capped at 10 bps Estimated MER1 on average 50 bps lower than the fund category average5 Underlying PowerShares ETF fee4 Operating expense Estimated MER PowerShares® Fund list - Series F MAF cap2 Subtotal3 PowerShares FTSE RAFI Canadian Fundamental Index Class PowerShares Canadian Dividend Index Class PowerShares Global Agriculture Class PowerShares Global Gold and Precious Metals Class PowerShares Global Water Class PowerShares Global Clean Energy Class PowerShares Golden Dragon China Class PowerShares FTSE RAFI Emerging Markets Fundamental Class 0.55 0.10 0.68 0.68 0.50 0.10 0.63 0.63 0.05 0.10 0.16 0.75 0.91 0.05 0.10 0.16 0.75 0.91 0.05 0.10 0.16 0.75 0.91 0.05 0.10 0.16 0.75 0.91 0.05 0.10 0.16 0.60 0.76 1As the Funds have not yet reach a full financial year, these MER are estimated. Please see slide 77 for more details. 2Subject to change. It is Invesco’s intention to absorb operating expenses so that the operating expense portion of the MER for Series F of these Funds does not exceed 10 bps, exclusive of taxes. Invesco may increase that limit in its discretion. 3This includes an estimated value for the GST; based on a 5% charge against the MAF and fund expenses. 4As of October 31, 2009 (April 30, 2009 for PowerShares Golden Dragon China Class); fees may fluctuate depending on USD fluctuation and are subject to change as the underlying ETF charges its fees in USD and the Fund converts that expense to Canadian dollars for the purposes of calculating the MER. It is possible that the ETF fee, expressed as a percentage of the Fund’s assets, may be greater or less than the stated management fee rate for the ETF, depending on the USD-Cdn dollar exchange rate. We do not expect that these differences will be material. 5 Median fund MER, as at October ; Source: Morningstar Research Inc. 0.05 0.10 0.16 0.85 1.01

Enhanced portfolio risk management
Portfolio transparency As opposed to regular mutual funds, which publish their complete holdings semi-annually, PowerShares® Funds report a complete holdings listing daily Hedging U.S. dollar The Funds will hedge a substantial portion of the U.S. dollar The hedging activity will not impact the foreign currency exposure experienced by the underlying ETF

Share-for-share exchange defers capital gains recognition
Less costly with greater tax efficiency Corporate class funds – Impact of switching Share-for-share exchange defers capital gains recognition Roll over Trigger

Features of U.S.-listed ETFs: Greater tax efficiency
Superior tax treatment of underlying U.S.-listed ETFs – less likely than Canadian-listed ETFs to distribute capital gains Invesco PowerShares in particular has only once made a capital gains distribution on any of its 117 ETFs*, allowing more of your money to stay invested Allows more of your clients’ money to stay invested Greater tax efficiency PowerShares ETFs use a LI–FO (lowest in – first out) in-kind tax management strategy unique to ETFs. This method typically allows the fund manager, during the creation and redemption process, to purge the lowest cost basis stocks through in-kind, non-taxable stock transfers. This unique operational trait leaves the fund with the highest cost basis securities, which systematically reduces tax exposure. *As at January 7, Past performance no guarantee of future results.

A better portfolio PowerShares® Funds PowerShares® Funds
Intelligent indices and access Enhanced portfolio risk management Greater tax efficiency in a lower-cost solution A better portfolio

Introducing PowerShares® Funds Focus on Fixed Income
This presentation was not produced by Invesco PowerShares Capital Management LLC For advisor use only. No portion of this communication may be reproduced or distributed to members of the public.

Rethinking risk Defending a portfolio
Probability of economic environments Source: Invesco Analysis, percentage of months since August 1973, based on historical analysis, and should not be considered future-looking. 26

Asset allocation – Harvard style
Policy portfolio evolution 120% Cash 100% 1991 1991 1996 1996 2007 2008 2008 2000 1980 1980 1988 1988 Emerging markets equity 80% Absolute return & special situations 60% Private equities 40% Fixed income Developed foreign equities 20% At the forefront of portfolio construction are the well publicized endowments of Harvard (pioneered by former president Mohamed El-Erian) and Yale’s $22 billion headed by David Swenson. These sophisticated endowments go beyond the basic, bonds, stock, cash asset mix to include categories like real estate, infrastructure and other hard assets, Private Equity, as well as increased exposure to international and emerging markets. Here is a look at how Harvard (the largest endowment in the US) has evolved its asset allocation since 1980. In Canada, leading pensions such as OMERS, CPP, Ontario Teacher’s and the Caisse have increasingly embraced asset classes outside of the traditional. In 1990, Teachers entire $17 billion portfolio was in non-marketable Government of Ontario bonds, today that plan sits at $108.5 billion and is broadly diversified across equities (both active and passive), fixed income, private equity, as well as inflation sensitive holdings such as: real estate, infrastructure and commodities. Real assets 0% Domestic equities -20% Source: Harvard Management Company, Inc., as at December 31, 2007

Rethinking risk Economic environments and asset classes
Non-inflationary growth Recession Inflationary growth Developed equities Emerging equities Private equity Hedge funds: long-short equity Long-term government bonds Commodities Floating-rate securities Market neutral Natural resources Real estate A simple but very powerful framework to think about asset selection is to consider the economic environment in which different assets perform well. So if we start with the simplest, recession (define by the national bureau of economic recession) - but then there are the periods where we are not in recession – so in those cases, we need to think about is inflation accelerating or is it decelerating. We can see each of these represented in their respective boxes so inflationary growth, non-inflationary growth and recession. Now, different assets should in theory, do well in those different periods. So if you look at non-inflationary growth, that’s the kind of period that we experienced from early 1980s to the late 1990s, and in general, stocks should do very well, whether it’s domestic equities, international, emerging equities, private equity or even with hedge fund, if you have long/short equity hedge funds, they’re going to tend to have an equity bias to them. Those are the assets that are going to have a tail end when going through periods of non-inflationary growth. If we move to the middle column, in periods of recession, then the assets that do well then are long term government bonds and we can talk about the descriptor there being hedged on a later slide, but in general, if you want to protect against recession, there should be no better assets than government bonds. To the right, we think of inflationary growth – and the classic example of commodities, directorial estate, infrastructure. And so, if this is the theorical framework, the question is, empirically, has that been true or not? Risk means more things can happen than will happen 28

Starting with core fixed-income allocation
Increased diversification Higher potential returns for a given level of risk Fixed Income CORE Equities Fixed income Corporate bonds Government bonds How to use the PowerShares Funds in a portfolio let’s start with your core portfolio (equity/bond portfolio) – your fixed income allocation. Your typical fixed income portfolio may look like something like this – one shade of blue – or one type of investment (gov bonds), possibly two. Many investors understand the importance of calibrating their stock portfolios to ensure diversity among investment styles, market-cap sizes and global regions. Often however, those same investors neglect to give the same attention to their fixed-income portfolio. They may simply buy a bond or two and call it a day. By expanding your bonds beyond a traditional Canadian bond fund we can improve the risk-return profile of a portfolio: Increased diversification Higher potential returns for a given level of risk How? That’s what we’ll address next. For illustrative purposes only.

Bond exposure in different economic cycles
Canadian interest rates January 1980 to December 2009 Current opportunity With short term interest rates at record lows and an increasing bond supply in the market to finance growing deficits, strong returns from government bonds are unlikely over the next three-to-five years. In addition, the current move towards deleveraging in the economy is favourable for corporate bonds. As companies begin lowering debt on their balance sheet, their creditworthiness subsequently improves. Potential inflation protection – Short-term bonds may serve as defensive investments when interest rates are rising compared to long-term bonds, which may provide an offensive play for investors when the economy is contracting and interest rates are falling. [js1] [js1]Combine 2 yield curves on 1 chart Source: Bank of Canada

Bond exposure in different economic cycles
Why have more than 1 type of bond allocation? you can craft a diversified fixed-income portfolio that has exposure to bonds of varying credit qualities, maturities and global regions. This strategy may help you avoid being caught off guard when market conditions and interest rates change. The chart below shows how no single bond type outperforms all the time. This shows the importance of ensuring that a fixed income portfolio is well-diversified and the odds are against you if you try and time the bond markets. Source: Zephyr StyleADVISOR as at November 30, Short Term Corporate Bonds are represented by the DEX Short Term Corporate Bond Index. Real Return Bonds are represented by the DEX Real Return Canada Bond Index. Long Term Corporate Bonds are represented by the DEX Long Term Corporate Bond Index. Floating Rate Loans are represented by the Credit Suisse Leveraged Loan Index (USD). High Yield Bond are represented by the Merrill Lynch High Yield Master II (USD). Short Term Government Bonds are represented by the DEX Short Term Government Bond Index. Long Term Government Bonds are represented by the DEX Long Term Government Bond Index.

Better fixed-income through duration and credit risk management
Government bonds Investment-grade bonds Floating coupon High-yield bonds Trimark Government Plus Income Fund Trimark Canadian Bond Fund Trimark Floating Rate Income Fund PowerShares Real Return Bond Index Fund Trimark Global High Yield Bond Fund Trimark Advantage Bond Fund PowerShares High Yield Corporate Bond Index Fund PowerShares 1-5 Year Laddered Corporate Bond Index Fund Here’s our the suite of fixed income solutions available at Invesco Trimark, including the PowerShares Funds, fit on that spectrum.

PowerShares 1-5 Year Laddered Corporate Bond Index Fund
Fund facts Series A MER: 0.95%1 Trailer: 0.50% Series F MER: 0.37%1 Category/Asset class: Fixed income (Canadian Short-Term Fixed Income) Asset class size: $12.8B2 Median fund MER in category: 1.68%3 Fee reduction against median: 0.73% Distributions: Income: monthly Capital gains: annually Index information* Duration: 2.79 Gross yield information 5.06% Cash yield 2.79% YTM Source: PC Bond. As at January 14, 2010 Why invest? Provides diversification by bond issue and term to maturity Requires no extensive bond research Requires no continual portfolio maintenance Mitigates the effects of interest-rate risk and reinvestment-rate risk Compared to buying individual bonds, bond funds lessen the impact of single-security credit risk Bond funds make reinvestment of interest payments easier Provides a more cost-effective way to diversify a fixed-income portfolio Index: DEX Investment Grade 1-5 Year Laddered Corporate Bond Index Index requirements Select five corporate bonds for each term bucket with the highest volume 25 constituents weighted by market cap Investment grade or higher As the name suggests, a laddered bond portfolio is made up of several fixed income holdings, each having a successively longer term to maturity. Bonds close to maturity are reinvested back out at the long end (i.e. at the top of the "ladder") which will result in continuous rolling of the portfolio. A laddered bond strategy provides the potential for high current income, diversification of bonds and maturities, predictability of future income, and the ability to automatically adapt to a changing interest rate environment. A laddered bond strategy does all this without requiring investors to forecast future interest rates or make complicated reinvestment decisions. A "laddered approach" removes the necessity to forecast where interest rates are headed and focus instead on common factors that are desirable to fixed income investors: exposure to Corporate Bonds, high current income, greater predictability of future income relative to broad fixed-income funds, and adaptability to changing conditions. The laddered strategy spreads out the fixed income capital over a range of maturities. Income generated by the laddered portfolio strategy will gradually change in line with the overall direction taken by interest rates. With a laddered portfolio, under normal market conditions, you realize greater returns than from holding only short-term bonds, but with lower risk than holding only long-term bonds. Moreover, by spreading out the maturities of your portfolio, you mitigate the effects of interest rate changes. PowerShares 1-5 Year Laddered Corporate Bond Index Fund tracks the performance of the DEX Investment Grade 1-5 Year Laddered Corporate Bond Index. The index invests in investment-grade corporate bonds rated BBB or higher by recognized credit rating agencies. The index is divided into five equally weighted buckets with staggered maturity levels from one-to-five years. Portfolio diversification – Adding a laddered bond fund to your portfolio may provide diversification benefits, thereby mitigating the effects of interest rate changes over the long term Reduces single-security risk – PowerShares 1-5 Year Laddered Corporate Bond Index Fund is diversified in terms of default and interest-rate risk, which is an ideal way to manage risk. In contrast, investing in a single bond does not provide sufficient diversification against these risks. Lower-cost solution – Investing in PowerShares 1-5 Year Laddered Corporate Bond Index Fund offers a cost-effective way to gain access to a laddered bond portfolio without extensive research, high trading costs and portfolio maintenance. Expense control is always important, but is significantly more important with bonds than with equities, especially in low interest-rate environments when bond yields are low. 1 As the Funds have not yet reach a full financial year, these MER are estimated. Please see MER disclaimer slide for more details. Subject to change. It is Invesco’s intention to absorb operating expenses so that the operating expense portion of the MER for these Funds does not exceed 15 bps for Series A and 10 bps for Series F, exclusive of taxes. Invesco may increase that limit in its discretion. Fees may fluctuate depending on USD fluctuation and are subject to change as the underlying ETF charges its fees in USD and the Fund converts that expense to Canadian dollars for the purposes of calculating the MER. It is possible that the ETF fee, expressed as a percentage of the Fund’s assets, may be greater or less than the stated management fee rate for the ETF, depending on the U.S.-Cdn dollar exchange rate. We do not expect that these differences will be material. 2 Source: Investment Funds Institute of Canada (IFIC). As at October 31, 2009. 3 Source: IFIC. As at October 31, 2009. 4 As at October 31, Source: PALTrak.

PowerShares Real Return Bond Index Fund
Fund facts Series A MER: 0.95%1 Trailer: 0.50% Series F MER: 0.37%1 Category/Asset class: Fixed income (Canadian Inflation Protection)2 Asset class size: $1.7B3 Median Fund MER in category: 1.89%4 Fee reduction against median: % Distributions: Income: semi-annually Capital gains: annually Index information Duration: Current gross yield: 1.48%5 Source: PC Bond. As at December 31, 2009 Why invest? Hedges against inflation over the long term Low credit risk of federal government default Provides valuable diversification in a fixed-income portfolio Provides a cost-effective way to access Real Return Bonds Index: DEX Real Return Canada Bond Index™ Index requirements Government of Canada Real Return Bonds Constituents with maturity greater than one year DEX Real Return Canada Bond Index™ has 6 constituents – all nice and liquid. Diversification: Corporate bonds offer the opportunity to invest in a variety of industry sectors. Corporate bonds can improve the diversification to an equity portfolio as well as diversify a fixed-income portfolio of government bonds or other fixed-income securities. Steady income: Corporate bonds provide a source of steady income for all types of investment portfolios. Most corporate bonds pay on a fixed semi-annual rate schedule. Attractive yields: Corporate bonds tend to provide higher yields than comparable maturity government bonds (5.57% to 4.56% for 10-year maturities) [UPDATE] due to their higher credit risk. In addition, when short-term yields are so close to those of long-term yields, it simply may not make sense to commit to long-term bonds. A gain of an extra 20 or 30 basis points doesn't quite compensate for the increase in volatility from longer-term bonds. Inflation protection – RRBs provide a good hedge against inflation by having their principal and coupons directly linked to changes in the Consumer Price Index (CPI). When the CPI rises, an RRB's principal is adjusted up, which also increases its semi-annual coupon payment because it is paid on the higher principal. Note, when the CPI drops in periods of deflation, the principal adjusts down, reducing the coupon payment too. Government guaranteed – The principal repayment and coupon payments are guaranteed by the Government of Canada, which is effectively the highest credit quality. There is essentially no risk with any investment held to maturity – every aspect of the investment is guaranteed, regardless of the size of the investment. With Government of Canada Bonds, there is also a high degree of liquidity. Source of income – Interest from RRBs is paid semi-annually. They carry a modest coupon rate (usually between 1% and 2.5%), but the real benefit is that the price will be adjusted systematically to keep pace with inflation. [CONFIRM tax treatment of adjustment] It is important to note that RRBs are best held in non-taxable accounts, as the inflation adjustments are made through additions to the principal amount. This means that they could create larger capital gains when sold, so keep the RRBs in your RSP or TFSA and you'll be adding some solid inflation-fighting punch with the security that only Canadian government bonds can provide. Diversification – RRBs are designed to be a core component of a fixed-income portfolio for long-term investors seeking a cost-efficient vehicle that generates interest income linked to inflation. RRBs are a good complement to a typical portfolio of bonds and not a replacement as the bonds' long-term maturities make them more sensitive to changes in interest rates. This can lead to a higher degree of volatility in the short term. PowerShares Real Return Bond Index Fund tracks the performance of the DEX Real Return Canada Bond Index. The index invests in Canadian federal real return bonds. Portfolio diversification – Adding RRBs is among the most direct ways of hedging against inflation, which makes this Fund a good complement to a typical portfolio of bonds and other types of bond funds. Lower-cost solution – We think investing in PowerShares Real Return Bond Index Fund is one of the best options for accessing Canadian RRBs due to its low fees. Real Return Bonds are well suited to passive fund management because of the low number of issues, which limit the ability for an active manager to add value in this category. Expense control is always important, but is significantly more important with bonds than with equities, especially in low interest-rate environments when bond yields are low. PowerShares Real Return Bond Index Fund has the lowest management fees¹ (Source required) among mutual funds in the Canadian Inflation Protected Fixed Income category. 1 As the Funds have not yet reach a full financial year, these MER are estimated. Please see MER disclaimer slide for more details. Subject to change. It is Invesco’s intention to absorb operating expenses so that the operating expense portion of the MER for these Funds does not exceed 15 bps for Series A and 10 bps for Series F, exclusive of taxes. Invesco may increase that limit in its discretion. Fees may fluctuate depending on USD fluctuation and are subject to change as the underlying ETF charges its fees in USD and the Fund converts that expense to Canadian dollars for the purposes of calculating the MER. It is possible that the ETF fee, expressed as a percentage of the Fund’s assets, may be greater or less than the stated management fee rate for the ETF, depending on the USD-Cdn dollar exchange rate. We do not expect that these differences will be material. 2 Source: Investment Funds Institute of Canada (IFIC). As at October 31, 2009. 3 Source: IFIC. As at October 31, 2009. 4 As at October 31, Source: PALTrak. 5 Does not include principal adjustments (up or down), which are included in taxable income (as interest) at the time of the adjustment.

PowerShares High Yield Corporate Bond Index Fund
Fund facts Series A MER: 1.21%1 Trailer: 0.50% Series F MER: 0.63%1 Category/Asset class: Fixed Income (High-Yield Bond)2 Asset class size: $9B3 Median fund MER in category: 1.68%4 Fee reduction against median: 0.47% Distributions: Income: monthly Capital gains: annually Index information Duration: 3.15 Current gross yield: 7.29% Source: Merrill Lynch, as at December 31, 2009 Why invest? Provides diversification of high-yield bonds by issue and issuer Generally offers higher yields than common dividends Provides high current income Tracks an asset class with historically low correlation to investment-grade bonds and money market instruments Requires no extensive research of high-yield securities Compared to buying single bonds, bond funds lessen the impact of single-security credit risk Provides a more cost-effective way to add high-yield bonds to a fixed-income portfolio Index: BofA Merrill Lynch US High Yield 100 Index Index requirements A bond must be a constituent of the US High Yield Constrained Index (HUC0), have at least $200 million outstanding face value, have a remaining term to final maturity of at least two years, be issued by a corporation with a country of risk of the United States, Canada, the United Kingdom or a Euro member country, have a CCC3 or higher rating (based on an average of Moody’s, S&P and Fitch) Diversification – They may play an important role in a diversified fixed-income portfolio because they have historically demonstrated a low correlation to other asset classes, as illustrated in the correlation table below. Some investors may think of high-yield bonds as highly volatile. But from a price perspective, even though high-yield bonds pose higher credit risk than other types of fixed-income securities, they may be less sensitive to interest-rate changes. Why? High-yield bonds are typically issued in terms of 10 years or less and are callable after the fourth or fifth year [confirm]. High-yield bonds also trade on credit fundamentals to a larger extent than investment-grade bonds. PowerShares High Yield Corporate Bond Index Fund tracks the performance of the Bank of America Merrill Lynch US High Yield 100 Index. Portfolio diversification – Adding a high-yield bond fund to your portfolio may provide diversification benefits, thereby mitigating the effects of interest-rate changes over the long term. Reduces single-security risk –- High-yield bonds offer above-market yields but are very difficult to invest in individually without extensive research of high-yield securities. By choosing PowerShares High Yield Corporate Bond Index Fund you can confidently devote a portion of your portfolio to high-yield bond issues as a way to boost fixed-income returns without taking on the single-security risk of buying a single high-yield bond. U.S. currency hedged – Invest with greater confidence knowing your investments won’t be affected by changes in the value of the Canadian dollar relative to the U.S. dollar as PowerShares High Yield Corporate Bond Index Fund hedges a substantial portion of its U.S. currency exposure at all times. Lower-cost solution – Investing in PowerShares High Yield Corporate Bond Index Fund offers a cost-effective way to gain access to a high-yield bond portfolio without high trading costs and portfolio maintenance. 1 As the Funds have not yet reach a full financial year, these MER are estimated. Please see MER disclaimer slide for more details. Subject to change. It is Invesco’s intention to absorb operating expenses so that the operating expense portion of the MER for Series A of these Funds does not exceed 15 bps, exclusive of taxes, and operating expenses for series F not to exceed 10bps, exclusive of taxes. Invesco may increase that limit in its discretion. Fees may fluctuate depending on USD fluctuation and are subject to change as the underlying ETF charges its fees in USD and the Fund converts that expense to Canadian dollars for the purposes of calculating the MER. It is possible that the ETF fee, expressed as a percentage of the Fund’s assets, may be greater or less than the stated management fee rate for the ETF, depending on the USD-Cdn dollar exchange rate. We do not expect that these differences will be material. 2 Source: Investment Funds Institute of Canada (IFIC). As at October 31, 2009. 3 Source: IFIC. As at October 31, 2009. 4 As at October 31, Source: PALTrak.

Starting with core fixed-income allocation
Increased diversification Higher potential returns for a given level of risk Fixed Income CORE Equities Fixed income Corporate bonds Government bonds How to use the PowerShares Funds in a portfolio let’s start with your core portfolio (equity/bond portfolio) – your fixed income allocation. Your typical fixed income portfolio may look like something like this – one shade of blue – or one type of investment (gov bonds), possibly two. Many investors understand the importance of calibrating their stock portfolios to ensure diversity among investment styles, market-cap sizes and global regions. Often however, those same investors neglect to give the same attention to their fixed-income portfolio. They may simply buy a bond or two and call it a day. By expanding your bonds beyond a traditional Canadian bond fund we can improve the risk-return profile of a portfolio: Increased diversification Higher potential returns for a given level of risk How? That’s what we’ll address next. For illustrative purposes only.

PowerShares Diversified Yield Fund
Fund facts Series A MER: 1.63%1 Series T6: 1.63%1 Series T8 MER: 1.63%1 Trailer: 1.0% Series F MER: 0.53%1 Category/Asset class: Canadian Dividend2 Asset class size: $57B2 Median fund MER in category: %3 Fee reduction against median: 0.66% Distributions: Income: quarterly Capital gains: annually T6 and T8 monthly as per target payout Index information Duration: Current gross yield: 4.67%5 Why invest? Provides a current income stream and the potential for moderate capital appreciation Provides a diversified basket of income-producing vehicles Low-cost, single-ticket solution PowerShares Diversified Yield Fund 35% 15% 30% 20% PowerShares 1-5 yr Laddered Corporate Bond Index Fund PowerShares High Yield Corporate Bond Index Fund PowerShares Canadian Preferred Share Index Class PowerShares Canadian Dividend Index Class Solution for your clients Diversified basket of income producing vehicles. Provides current income stream and the potential for moderate capital appreciation Low cost option (1.63% for Series A, T6, T8) (0.53% for Series F) Solution for your business Low cost single ticket solution Diversified basket – no need to rebalance your portfolio (Monitors and rebalances the assets to the strategic target allocation ) Compensation for your advice: 1.00% annual trailer fee (Series A, T6, T8) The PowerShares Diversified Yield Fund rounds out our PS income solutions with a product that packages them together into a single ticket solution. It combines the 1-5yr laddered corporate bond, with high yield bonds for fixed income and adds on the tax-efficient Cdn dividends and pref dividends to give clients yield that many are looking for. And because the Cdn Div and Pref funds are in the corp structure they help minimize capital gains distributions from the fund. 1 As the Funds have not yet reach a full financial year, these MER are estimated. Please see MER disclaimer slide for more details. Subject to change. It is Invesco’s intention to absorb operating expenses so that the operating expense portion of the MER for these Funds does not exceed 15 bps for Series A and 10 bps for Series F, exclusive of taxes. Invesco may increase that limit in its discretion. Fees may fluctuate depending on USD fluctuation and are subject to change as the underlying ETF charges its fees in USD and the Fund converts that expense to Canadian dollars for the purposes of calculating the MER. It is possible that the ETF fee, expressed as a percentage of the Fund’s assets, may be greater or less than the stated management fee rate for the ETF, depending on the U.S.-Cdn dollar exchange rate. We do not expect that these differences will be material. 2 Source: Investment Funds Institute of Canada (IFIC). As at October 31, 2009. 3 As at October 31, Source: PALTrak. 4 Hypothetical duration calculated as a weighted average of the duration of the fixed-income indices underlying the component funds. Durations have been sourced from PC Bond. Data as at December 31, 2009. 5 Hypothetical yields have been calculated as a weighted average of the yields of the indices underlying the component funds. Yield sources: PC Bond, Bloomberg LP and Indxis Inc. Data as at December 31, 2009.

Questions Common Questions and answers – or take questions from the floor Can you explain why some of the funds are corporate and some come in the form of mutual fund trusts? (Cooke/Newman Answers) Can you explain how the USD Hedging works? Is there any foreign currency exposure? (Cooke/Newman Answers) How can you launch at such a low cost? And why is there not a DSC or LL option available? (Cooke/Newman Answers) Help me understand how the pricing of the PS Funds compares to ETFs? (Cooke/Newman Answers) Why would I choose to include indexing strategies when my business has been built on the basis of picking the best active managers? (Cooke/Newman Answers) Thank you Scott/Michael You will undoubtedly have other questions, which we would encourage you to include in your feedback form or reach out to your sales team to get the necessary information you require. Scott/Michael will be available to answer your questions as we wrap up the session as well. (see below for scripted answers) QUESTION 1 - Can you explain why some funds are part of the corporate class structure and some are mutual fund trusts? When deciding between offering a product as a mutual fund trust or as part of a mutual fund corporation, we assess the situation on a case-by-case basis. Mutual fund trusts and corporations each have unique tax characteristics and rules, so we have to assess which legal structure is best suited for each new Product. Generally speaking, all Canadian equity funds and foreign equity funds with low dividend yields are best suited for corporations, while traditional bond funds and balanced funds are less ideal or even problematic from a tax perspective. Funds in the corporate class structure are only permitted to distribute income in the form of Canadian dividends and capital gains to investors. While interest income and foreign dividends help to grow the NAV of a fund, for tax purposes, they are trapped in the corporation and do not flow through to investors in the form of distributions like they do in mutual fund trusts The trapped interest income and foreign dividends is retained within the corporation and is offset with expenses of the corporation (the collective MERs). If the retained income exceeds the expenses available, then the corporation is required to pay tax on the excess income. Because PowerShares funds have lower MERs than traditional mutual funds, we have to more selective as to which funds are offered in the corporation PowerShares® Funds that generate a high level of income and/or foreign dividends were excluded from the corporate class structure to avoid the potential for a tax liability within the corporation Is someone wants to dig deeper afterwards: While none of our share classes within Invesco Trimark Corporate Class Inc has ever experienced this scenario since its inception in 1996, we prudently manage the tax position of the corporation to mitigate against this risk If this were to happen - For open account investors, the corporation essentially pays tax on behalf of investors (the tax payable is essentially the same compared to owning a trust version of the same fund). For registered investors, they will pay tax sooner than they would otherwise have to, thereby losing some of the tax deferral benefits of investing in a registered account. They would pay some tax now versus paying at the time they deregister their assets. QUESTION 2- Can you explain how the USD Hedging works? Is there any foreign currency exposure? All PowerShares Funds that purchase underlying U.S.-listed ETFs and PowerShares High Yield Corporate Bond Index Fund will substantially hedge their U.S.-dollar currency exposure at all times. This will provide a Canadian investor with a return that is roughly the equivalent of a U.S. investor purchasing the underlying PowerShares ETF (before additional fees) This should not be construed as being currency neutral or fully currency hedged - where a PowerShares Fund buys shares of an Invesco PowerShares ETF, the investments held by the ETF may trade in foreign currencies and, thereby expose the ETF to currency risk relative to the U.S. dollar. The Invesco PowerShares ETFs do not hedge this exposure and, therefore, the Funds will be exposed to fluctuations in these currencies. We think this is a simpler approach for investors and advisors to understand and is the common practice with competitor ETFs Our portfolio management team in Houston substantially (95-97%) hedges the U.S. exposure with forward currency contracts at all times. It is a passive approach and no currency calls are made. The following PowerShares® Funds seek to reduce the risk of exchange-rate fluctuations between the U.S. and Canadian dollars by hedging a substantial portion of their U.S.-dollar exposure: PowerShares High Yield Corporate Bond Index Fund PowerShares Diversified Yield Fund (High Yield Bond component only) PowerShares Global Dividend Achievers Fund PowerShares FTSE RAFI U.S. Fundamental Fund PowerShares FTSE RAFI Global+ Fundamental Fund PowerShares FTSE RAFI Emerging Markets Fundamental Class PowerShares Global Agriculture Class PowerShares Global Gold and Precious Metals Class PowerShares Global Water Class PowerShares Global Clean Energy Class PowerShares Golden Dragon China Class PowerShares India Class QUESTION 3- How can you launch at such a low cost? And why is there not a DSC or LL option available? First and foremost, we are able to offer the PowerShares Funds because we own PowerShares! We do not hire the sub-advisory services from an external provider and therefore can eliminate the margin that would normally go to this source. This is one more example of how being part of Invesco provides you access to relevant and innovative solutions that cannot be matched in the Canadian marketplace. We also have a $2000 minimum initial investment per fund to help keep costs down for investors. Once that min is met subsequent investments may be $50. The initial min was put in place to ensure that the lowest possible pricing could be offered to investors who want to use these funds. Small accounts drive operating expenses of the fund very high, as reporting and fund admin requirements are on an account by account basis. By keeping the min higher, it allows us to offer lower pricing to those that are actually making a real investment in these funds. In addition most transaction sizes for ETFs are typically in excess of $2,000 per trade, so we think that a $2000 initial investment is very reasonable. The $50 subsequent purchase is a real benefit for investors as they re-balance portfolios or make smaller contributions over time. On average, investors in our funds have $5000 per fund, so this is not an overly strict test based on our existing book of business. And why is there not a DSC or LL option available? Like ETFs, the PowerShares Funds are designed to provide investors with lower fees relative to traditional mutual funds We also wanted to offer PowerShares Funds with purchase options that are most similar to the ones available for ETFs as we are trying to provide a similar client experience. One of the key features of ETFs is that they don’t carry LL or DSC lock-in periods which makes them more flexible to use and lower cost. While we recognize that many advisors appreciate having Low Load and DSC purchase options available, if we were to offer PowerShares Funds with a low load or DSC purchase option, most of the cost savings for investors would not be realized as the cost to finance LL and DSC commissions are very high. QUESTION 4- Help me understand how the pricing of the PowerShares Funds compare to ETFs? PowerShares® Funds, Series A, are approximately 40 basis points (bps) to 100 bps cheaper than mutual funds in the same category AND they still provide investors with the benefit of Investment advice and the additional services provided by advisors When it comes to fees, it’s important to make an apples-to-apples comparison (e.g., Series A to Series A, Series F to Series F). You need to consider the total costs of each investment to see the whole picture. Think of it as you would airline ticket prices that you might see advertised in a newspaper. One price could appear significantly lower than another, but upon closer examination of the fine print, you realize that one price does not include various taxes, fees, etc., while the other one does. To make a fair comparison, you need to consider the “all in” price for both offers. + Refer to Peter value of advice letter in their kit QUESTION 5- Why would I choose to include indexing strategies when my business has been built on the basis of picking the best active managers? The premise is that many advisors have built their practice on the basis of active manager selection. It is the view of many advisors that a move to include “passive” index based strategies such as the PSF would represent a departure from the value proposition they have been providing clients. The Trimark Fund example is a powerful example of active management at work: a concentrated portfolio unlike its benchmark in geographic or sector weights and based on the best stocks picks as per the Trimark discipline-worthy of active manager fees and backed by long term outperformance vs. peers and benchmarks. An advisor that truly believes in active management would also be accepting of the fact that even the best managers underperform (or deviate from) benchmark returns from time to time. This is called “active risk”. One way to manage active risk, preserve your asset allocation model and keep clients satisfied might be to pick active managers that track their benchmark closely but that begs the question: why pay higher fees for an active manager that attempts to mimic a benchmark? A better way for advisors to compensate for this “active risk” would be to look to lower cost, indexing strategies such as the PowerShares Funds. PSF are based on intelligent indexing strategies that also strive to outperform benchmarks but tend to track more closely the returns of the broader market with costs that fall well below active managers fees. The slide showing several of our RAFI PSF solutions illustrates the broad diversification of index solutions and why they will tend to track benchmark returns more closely. Many advisors want to see their “active” funds track more closely with benchmarks. This has resulted in the closet index peril: some of the largest actively managed mutual funds overcharge on expenses while copying an index fund. Why? As they get larger, big funds end up buying most if not all of the stocks within a particular index they are trying to beat but there’s almost no way they can outperform because they still incur trading costs, darting in and out of the market and forced to redeem shares during downturns. In the US, Morningstar has estimated that one out of seven large company funds tracks 90% of the S&P 500. If your clients hold some of these closest index funds, ask the question if the fees they are paying can be justified? Again, the solution is the PSF which provided diversification and lower cost exposure to equity markets. We believe that investors can and should do what institutions do. The largest institutional investors in the world such as CalPERs, CalSTERS and the New York State Retirement has been combining active and index strategies for many years for to achieve diversification, low cost, risk management, tax efficiency and portfolio transparency. Clearly, these institutions have embraced active and index strategies in building better portfolios. The answer for financial advisors is not to use one or the other. Rather, the answer-as many of the world’s largest investors have realized-is to recognize and leverage the strength and considerations of both index and active where appropriate. The PowerShares Funds are intelligent index-based solutions that deliver all the benefits of index investments while compensating advisors for the value of their advice. This presentation was not produced by Invesco PowerShares Capital Management LLC For advisor use only. No portion of this communication may be reproduced or distributed to members of the public.

Additional resources Additional sales support tools:
PowerShares® Funds Advisor Q&A PowerShares® Funds at-a-glance summary PowerShares® Funds client brochure Prospecting letter Co-op ad Client seminar kit

Important information MER disclosure
As the Funds have not completed a financial year, we are unable to provide an MER; however, based on the management fee for each Fund, the management fee for each underlying PowerShares ETF (where applicable), GST, and our commitment to cap operating expenses at 15 bps for Series A and 10 bps for Series F (exclusive of taxes), we expect that, once we have completed a full financial year, the MER for each Fund will be approximately as set forth in the previous tables. It is possible that MERs will be higher once the HST comes into effect or that we will be able to operate the Funds more efficiently than planned and, thereby, will not need to invoke the 15 bps cap (Series A) and 10 bps cap (Series F). (This slide can not be deleted)

Important information Risk disclosure
As with all investments there are associated inherent risks. This presentation is not intended to provide legal, accounting, tax or specific investment advice. If such advice is required, the services of a competent professional should be sought. The information contained in this presentation was obtained or compiled from sources believed to be reliable; however, Invesco Trimark cannot represent that it is accurate or complete. Commissions, trailing commissions, management fees and expenses may all be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the prospectus before investing. Copies are available from Invesco Trimark Ltd. (This slide can not be deleted.)

Important information General PowerShares® Funds disclosure
Units/shares of the Funds and of the underlying PowerShares ETFs are not in any way sponsored, endorsed, sold or promoted by any of the Funds’ or PowerShares ETFs’ underlying Index providers or their affiliates, and these companies make no representation or warranty, express or implied, as to the results to be obtained from the use of the Index. None of these companies are affiliated with Invesco Trimark Ltd., Invesco PowerShares Capital Management LLC, or Invesco Advisers, Inc., nor any of their affiliates. Products are not sponsored, endorsed, sold or promoted by any of the Index providers, and the Index providers make no representation regarding the advisability of investing in these Funds. (This slide can not be deleted.)

Important information PowerShares ETF disclosure
Invesco Canada may receive consideration for its role in marketing PowerShares ETFs to Canadian financial advisors. No prospectus for the Shares has been filed with Canadian securities regulators, and no Canadian securities regulator has expressed an opinion about the Shares. Invesco Canada and its affiliates do not provide tax advice, and nothing contained herein should be construed as tax advice. Investors should seek advice based on their particular circumstances from an independent tax advisor. Shares are not individually redeemable and owners of the shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in creation unit aggregations only, typically consisting of 50,000 shares. There are risks involved with investing in exchange-traded funds, including possible loss of money. The Funds are not actively managed and are subject to risks similar to stocks, including those regarding short selling and margin maintenance. Ordinary brokerage commissions apply. Shares of the Funds are not in any way sponsored, endorsed, sold or promoted by any of the Funds’ underlying index providers or their affiliates, and these companies make no representation or warranty, express or implied, as to the results to be obtained from the use of the indices. None of these companies are affiliated with Invesco PowerShares or Invesco Canada not any of their affiliates. The products are not sponsored, endorsed sold or promoted by any of the Index providers, and the Index providers make no representation regarding the advisability of investing in the Funds. An investor should consider the Funds’ investment objectives, risks, charges and expenses carefully before investing. For other information about the Funds, visit our website at invescopowershares.ca. Not CDIC insured ● No bank guarantee ● May lose value This slide can not be deleted

Important information Awards disclosure
Capital Link: A New York-based investor relations and financial communications firm with a strategic focus on CEFs and ETFs. The Awards are based on nominations by a committee of analysts who actively follow ETFs. The awards aim to identify and recognize annually those fund sponsors and executives who consistently apply high standards of financial disclosure, investor and shareholder relations and innovation. The Global ETF Awards and Workshop: Hosted by exchangetradedfunds.com. The Global ETF AWARDS® provides an opportunity for industry professionals worldwide to be recognized for their contributions to the growth of the ETF marketplace. Winners are selected by votes cast by ETF industry entities worldwide. Additionally, a series of awards are determined by analysis of statistical data. The William F. Sharpe Indexing Achievement Awards: Produced in conjunction with the Index Business Association are presented each year. The awards are chosen following a rigorous selection process, starting with a vetting committee of industry practitioners. The vetting committee reviews hundreds of nominations and narrows the field down to three finalists in each category. The finalists are voted upon by the world’s leading academics in the indexing research world. To the Fund Sponsor who came up with the most innovative New Product in the given year. To the Fund Sponsor who came up with the most innovative Index in the given year. To the Fund Sponsor who came up with the most innovative domestic product in the given year. To the Fund Sponsor who came up with the most innovative hybrid product in the given year. This disclaimer is needed when you use the slides 14 &15 from the master branch presentation which makes references to the Invesco PowerShares awards

Important information Trademark disclosure
FTSE is a trademark jointly owned by the London Stock Exchange PLC and The Financial Times Limited and is used by FTSE International Limited under licence. The FTSE RAFI® Index Series is calculated by FTSE International Limited (“FTSE”) in conjunction with Research Affiliates, LLC (“RA”). Neither FTSE nor RA sponsor, endorse or promote this product and are not in any way connected to it and do not accept any liability in relation to its issue, operation and trading. All intellectual property rights in the index values and constituent list vest in FTSE. Fundamental Index® and RAFI® trade names and patent concept are the exclusive property of Research Affiliates, LLC. U.S. Patent Number 7,620,577. Patent pending: US A1, US A1, US A1. Invesco Trimark Ltd. has obtained full licence from FTSE to use such intellectual property rights in the creation of this product. INDXIS and INDXIS SELECT CANADIAN ACHIEVERS™ are trademarks of Indxis and have been licensed for use by Invesco Trimark. The product is not sponsored, endorsed, sold or promoted by Indxis and Indxis makes no representation regarding the advisability of investing in PowerShares Canadian Dividend Index Class. PC-Bond is a business unit of TMX Group Inc. Copyright © TMX Inc. All rights reserved. The information contained herein with respect to PC-Bond may not be sold or modified or used to create any derivative work without the prior written consent of TMX Group Inc. PC-Bond and the parties from whom PC-Bond obtains data do not have any liability for the accuracy or completeness of the data provided or for delays, interruptions or omissions therein or the results to be obtained through the use of this data. Neither PC-Bond nor the parties from whom it obtains data make any representation, warranty or condition, either express or implied, as to the results to be obtained from the use of the data or as to the merchantable quality or fitness of the data for a particular purpose. “BofA Merrill Lynch” and “The BofA Merrill Lynch US High Yield 100 IndexSM” are reprinted with permission. © Copyright 2010 Merrill Lynch, Pierce, Fenner & Smith Incorporated (“BofAML”). All rights reserved. “BofAML” and “The BofA Merrill Lynch US High Yield 100 Index” are service marks of BofAML and/or its affiliates and have been licensed for use for certain purposes by Invesco Trimark Ltd. on behalf of PowerShares High Yield Corporate Bond Index Fund that is based on The BofA Merrill Lynch US High Yield 100 Index, and is not issued, sponsored, endorsed or promoted by BofAML and/or its affiliates nor is BofAML and/or its affiliates an adviser to PowerShares High Yield Corporate Bond Index Fund. BOFAML AND ITS AFFILIATES MAKE NO REPRESENTATION, EXPRESS OR IMPLIED, REGARDING THE ADVISABILITY OF INVESTING IN POWERSHARES HIGH YIELD CORPORATE BOND INDEX FUND OR THE BOFA MERRILL LYNCH US HIGH YIELD 100 INDEX AND DO NOT GUARANTEE THE QUALITY, ACCURACY, TIMELINESS AND/OR COMPLETENESS OF THE BOFA MERRILL LYNCH US HIGH YIELD 100 INDEX, INDEX VALUES OR ANY INDEX-RELATED DATA INCLUDED HEREIN, PROVIDED HEREWITH OR DERIVED THEREFROM AND ASSUME NO LIABILITY IN CONNECTION WITH THEM OR THEIR USE. As the index provider, BofAML is licensing certain trademarks, The BofA Merrill Lynch US High Yield 100 Index and trade names, which are composed by BofAML without regard to Invesco Trimark Ltd., Invesco Trimark Ltd. or PowerShares High Yield Corporate Bond Index Fund or any investor. BofA Merrill Lynch and BufA Merrill Lynch’s affiliates do not provide investment advice to PowerShares High Yield Corporate Bond Index Fund and are not responsible for the performance of PowerShares High Yield Corporate Bond Index Fund. This slide can not be deleted. Invesco and all associated trademarks are trademarks of Invesco Holding Company Limited, used under licence. Trimark and all associated trademarks are trademarks of Invesco Trimark Ltd. PowerShares and all associated trademarks are trademarks of Invesco PowerShares Capital Management LLC, used under licence. © Invesco Trimark Ltd., 2010

Thank you And to everyone, thank all of you for joining us today and a sincere thank you for your continued support of Invesco Trimark. This presentation was not produced by Invesco PowerShares Capital Management LLC For advisor use only. No portion of this communication may be reproduced or distributed to members of the public.

Introducing PowerShares® Funds

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Introducing PowerShares® Funds

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