INVESCO Launches Absolute Return Fund

INVESCO LAUNCHES ABSOLUTE RETURN FUND INVESCO, part of the AMVESCAP group, one of the world's largest investment management organisations, announced today it is launching the INVESCO Absolute Return Fund. This will be the first INVESCO fund to target the hedge fund market outside the US. Brett Bastin, Head of Product Development for Absolute Return Strategies at INVESCO said: "The INVESCO Absolute Return Fund has two main advantages: i) compelling risk-adjusted absolute returns for investors in a variety of market environments, and ii) low correlation to traditional assets. These two advantages are especially attractive in the current volatile market conditions. We believe that the benefits of investing in absolute return strategies (i.e., Fund returns are not benchmarked to an index) may appeal to a large proportion of our existing client base as well as many new potential investors." The Fund will integrate a bottom-up long-short US equity market neutral strategy with a top-down futures strategy investing in US stock and US bond futures. It will apply a team-oriented, process-driven investment approach, which focuses on both return and risk. The Fund will be offered in all markets served by INVESCO where regulations permit, and it is targeted at institutional, high net worth and affluent investors. The Fund is a Dublin-domiciled, open-ended investment company and aims to provide a return of approximately 10% (after management and performance fees) on an annualised basis with annual volatility of about 8%. The Fund will invest in large cap US equities, as well as S&P500 Stock Index futures and US Treasury Bond futures. The Fund will be managed by INVESCO's Structured Products Group based in New York which has 10 years experience managing US equity market neutral and financial futures portfolios and whose team members have an average of 14 years investment experience. The team currently manages $1.5 bn* of assets in absolute return strategies. Bastin continued: "INVESCO recognises a growing demand for absolute return investments amongst investors outside the US. Offering this Fund is consistent with INVESCO's multi-product, multi-style approach. INVESCO's proven experience in this arena, managing US equity market neutral and financial future portfolios is reflected in a sizeable institutional client base in absolute return strategies." - Ends - INVESCO Absolute Return Fund Product Specifications Overall Portfolio Absolute Return Objective* (net of fees) 10.0 % Volatility 7.8 % Sharpe Ratio (net of fees) 1.3 Maximum Monthly Loss (last five years) 5.2 % Maximum Drawdown (last five years) 9.8 % Maximum Stock Position Size (Long or Short) 2 % Normal Cash Reserve 10 % - 20 % Normal Futures Margin 0 % - 10 % *Assumes US Treasury Bill rate of 3% Stocks Long Short Approximate Number of Holdings 140 140 Turnover 100 % 100% Industry Over/Underweight +/-1% of Short +/-1% of Long Portfolio Beta Equal to Short Equal to Long Futures S&P 500 Index futures holdings (long or short) Treasury Bond futures holdings (long or short) Terms Fund Domicile Ireland Fund Listing Irish Stock Exchange Fund Status Open-ended Legal Form Investment Company Subscriptions Twice monthly, at two days' notice Redemptions Monthly, at two days' notice Valuation Weekly Share Classes US Dollar Euro hedged Minimum Subscription Euro 125,000 Investment Advisor INVESCO Institutional (N.A.) Inc. Prime Broker Morgan Stanley & Co. Administrator PFPC International Management Fee 1.50 % p.a.-A shares; 1.00% p.a -C shares Performance Fee 15 % of new profits above Hurdle Performance Fee Hurdle 30 day US Treasury Bills Redemption Fee ( < 6 months, < 12 2 %, 1 % - may be waived by months) Directors Initial Fee Up to 3 % - A shares; 0% - C shares * Redemption Fee is payable to the Fund. Pre-launch Material For further information please contact: Shirley Hatherton/Jon Atkins/Jane Budge Jane Drew Lansons Communications INVESCO 020 490 8828 020 454 3949 Notes to Editors: INVESCO forms part of the AMVESCAP Group, one of the world's largest investment management organisations, which has more than 8,100 employees, offices in 22 countries, and US$364 billion of funds under management* AMVESCAP has a significant presence in the investment management industry in North America, Europe and Asia-Pacific, and services clients in more than 100 countries. It is listed on the London, New York, Paris and Toronto stock exchanges. Further information about INVESCO can be found on www.invesco.co.uk *Source: INVESCO as at 30th June 2002 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/09/16/20020916BIT00330/wkr0001.doc http://www.waymaker.net/bitonline/2002/09/16/20020916BIT00330/wkr0002.pdf

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