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June 25, 2010

The combination of Invesco and Van Kampen/Morgan Stanley retail expands the depth and breadth of investment capabilities we offer clients and significantly enhances our U.S. market presence.

Invesco completed its acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, on June 1.

As a result of the combination, Invesco gained investment talent for a number of investment strategies, including U.S. Value Equity, U.S. Small Cap Growth Equity, Tax-Free Municipals, Bank Loans and others. With this enhanced expertise and a comprehensive range of diverse investment capabilities, Invesco is better positioned than ever to meet the needs of our clients across the globe.

Our primary focus since announcing the combination in October 2009 has been on ensuring that the investment teams joining Invesco are effectively transitioned and fully resourced so that they can continue to deliver quality investment services to our clients.

Since the announcement in October, we have been carefully reviewing the capabilities of the investment teams that would join Invesco at close and planning for the combination. The investment capabilities, teams and cultures of our organizations are highly complementary, which is facilitating the process of bringing the teams together.

Realignment of our U.S. Investment Teams

As we have communicated publicly, we are reviewing the full Invesco product line and making decisions that will sharpen our offering to clients. A key goal of this effort is to ensure we have deeply resourced and focused teams, and to reduce overlap and enhance efficiency across the product line for the benefit of shareholders. We anticipate this process will take 9-12 months to complete as any changes to U.S. funds must receive regulatory required approvals.

To align our capabilities, we are making changes to select portfolio management teams. We believe these changes will better enable Invesco to deliver quality investment services to shareholders and clients over the long term. A summary of changes to our portfolio management teams can be viewed by using the following links.

Large, Multi, Mid and Small-Cap Values; Core; Large, Multi-Cap Growth; Sector; Quantitative; International/Global Equities; Fixed Income Asset Allocation/Alternatives

*New managers joined the fund on June 25; Glass and Yaggy will remain on the fund until July 30.

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We believe the proposed changes will further position Invesco for long-term success. The realignment of the portfolio management teams for select investment strategies will:

• Contribute to our reputation as an independent, investment-focused organization known in the marketplace as being dedicated to delivering quality investment services to shareholders
• Build a solid foundation for future growth
• Ensure that our investment processes and strategies are supported by strong investment capabilities
• Reduce overlap in portfolio management capabilities and create scale within investment teams for the benefit of fund shareholders
• Provide clarity for our investment teams and the marketplace

Those individuals who will not be part of the organization going forward have been notified, and we are working with them to ensure a smooth transition of the business. For those individuals who are leaving Invesco, we are taking steps to help them as they contemplate the next phase in their careers. We appreciate their many contributions on behalf of clients, and wish them well in their future endeavors.

Focusing on Delivering Quality Investment Services

“Now that we have successfully closed the transaction, we are moving quickly to shape our U.S. investment team management structure for long-term success,” said Phil Taylor, senior managing director and head of North American Retail. “This will help ensure our investment teams remain focused on delivering quality investment services to our clients while providing a stable foundation as we begin the process of optimizing our product line.”

We will continue to communicate with you as we work to ensure a smooth transition of the management of the funds impacted by these changes. We value our relationship with you and remain dedicated to helping investors achieve their financial objectives.

Frequently Asked Questions

• 1. Will my mutual fund’s investment objective change?

  No. The funds will continue to be managed according to their prospectus guidelines.

• 2. How will these moves impact the investment processes at Invesco?

  These moves do not impact the investment processes. The portfolio management teams will continue to adhere to their current investment processes. In addition, Invesco has a robust oversight approach, which helps ensure the teams remain focused on adhering to their investment disciplines and delivering quality investment services to clients.

• 3. What are the plans for fund optimization?

  It is typical and expected that there will be some rationalization of funds when asset management firms are combined. Invesco has begun a thorough review of the fund lineup for the combined organization. The purpose of this review is to determine the optimal fund/product suite that delivers the best investment capabilities of the combined organization to our clients. Based on extensive and thoughtful evaluation, and with the approval of the fund board and fund shareholders, we will begin to merge some funds in the U.S. to sharpen the comprehensive range of capabilities and products we provide our clients. We anticipate this process will take from 9-12 months. Since we have not completed our evaluation, we cannot make a prediction regarding expected changes in AUM or the number of funds that will be impacted.

• 4. What are you doing to ensure the investment teams/leaders are fully engaged?

  We believe that the investment-focused culture of Invesco with its single business of asset management provides an attractive environment where talented investment professionals will be able to thrive in their work. We also recognize that rewarding and motivating investment talent is a critical component of our future growth as well as a successful combination with Van Kampen/Morgan Stanley Investment Management.

  In addition to our ongoing competitive compensation approach, we are guaranteeing full payment of salaries for 2010 and that bonuses will be paid consistent with existing compensation plans for the teams through 2010.

  In addition, long-term deferred compensation will be an important part of each team’s compensation, and they will participate in Invesco’s global equity program now that they are Invesco employees.