Invesco Hong Kong Limited

Fees and Compensation

Description

With regards to most of the IHKL’s managed or advisory portfolios, IHKL receives
payment of a fee which is based on the value of asset under management and
complexity of the mandate which are subject to negotiation.

Billing

Investment management fees are billed in arrears, meaning that IHKL invoices the
client after the billing period ended. Billing period would be subject to the
agreement with the client. Payment in full is expected upon invoice presentation.

Other Fees

Custodians may charge transaction fees on purchases or sales of certain mutual
funds. These transaction charges are usually small and incidental to the purchase
or sale of a security. Brokerage fees would also be incurred during the execution
of securities.

IHKL may buy or sell securities or investment products in which IHKL or IHKL’s
affiliates or the portfolios managed by IHKL or IHKL’s affiliates may have some
financial interest.

Concerning mutual funds, there may be other fees such as the initial fees or the
redemption charges which are stated in the relevant prospectuses.

                         Invesco Hong Kong Limited

Types of Clients

Description

IHKL generally provides investment advice/ managed assets for financial
institutions, investment companies, pension, trusts or foundations, corporations or
business entities, or other entities.
Client relationships vary in scope and length of service.

Account Minimums

In general, the minimum account size is $ 20 million of assets under management
for the separate accounts which have direct holdings on the investments.
For discretionary fund-of-funds accounts, the minimum account size is $ 5 million.
IHKL has the discretion to waive the account minimum. Accounts of less than $5
million may be set up when there is potential that the client will add additional funds
to the accounts bringing the total to $ 5 million within a reasonable time.

                           Invesco Hong Kong Limited

Methods of Analysis, Investment Strategies and Risk of Loss

Investment Strategies

IHKL employs several methods of analysis and investment strategies in managing
assets, each of which is discharged by discrete investment centers. These are
each described in the table below.
  Investment   Summary of philosophy and process            Sub
  center                                                    strategies/mandates
  Invesco       The team’s philosophy/core belief is that      •   China    Equity
  Hong Kong     the Chinese equity market is inefficient           investment
                for multiple reasons, including but not
  and China                                                        strategy
                limited    to,    misunderstanding     of
  Equity        industries and companies, greed and            •   Greater China
  Investment    fear, macro policy and headwinds,
                                                                   investment
  Team          sentiment, liquidity, and predominant
                retail market participation. However,              strategy
                through      top-down    insights    and
                disciplined in-depth research and
                analysis, we believe we can minimize
                the misunderstanding and derive a
                company’s true value and potential and
                benefit from this.

               Growth is the key driver of share price
               appreciation.

               We look to identify growth drivers as we
               believe alpha can be generated by
               identifying and investing in quality
               companies with good growth prospects.

               Cash Flow Generation Ability is also of
               paramount importance. The cash flow
               generation of a company is a critical
               factor in determining the quality of the
               company, as it evident a company’s
               soundness.

               We carefully decide the valuation we pay
               for the different growth categories
               (thematic growth, structural growth,
               cyclical growth, sustainable growth). For
               example, companies that deliver good
               cash flow may justify a higher valuation.

                        Invesco Hong Kong Limited

              On the other hand, cash flow generation
              may be lower for high-growth
              companies, given the need to invest. In
              this case, valuation needs to be
              supported by high growth.

Invesco       The team’s goal is to take advantage of       •   Asia ex-Japan
Asia Equity   market     inefficiencies   through       a       equities
Investment    disciplined bottom-up stock selection             investment
              process. The investment team believes
Team                                                            strategy
              that there are pockets of inefficiencies in
              the Asian equity markets, resulting in        •   India    equity
              frequent mispricing of stocks due to              investment
              over/under-reaction to new information.
                                                                strategy
              The team seeks to systematically take
              advantage of market inefficiencies            •   Asia       Asset
              through      identifying   changes       in       Allocation
              fundamentals by strictly adhering to a            investment
              disciplined investment process focusing
                                                                strategy
              on earnings and valuation of each
              company. The team’s investment style is       •   ASEAN Equity
              described as seeking ‘sustainable value           investment
              investment’. The team adopts a selective
                                                                strategy
              approach to invest in companies with
              sustainable leadership and competitive        •   China    Equity
              advantages at a discount to their fair            investment
              value. The team also believes that local          strategy
              knowledge is important. By having an
              experienced team conducting proprietary
              on the ground research and capturing the
              best ideas, the team gains an information
              advantage and an opportunity to achieve
              favourable returns.

China-A     The objective of China A-share Quality          •   China A-share
Investments Core Equity is to achieve long term capital         Quality  Core
            growth by investing in A shares of                  Equity
            Chinese companies listed on the
            Shanghai or Shenzhen Stock Exchanges,           •   China   Health
            via Stock Connect. It also invests in               Care Equity
            companies which are attractively valued
            and demonstrate sustainable growth,
...