INVESTING IN RISK PARITY Invesco Advisers, Inc. and ...

1 INVESTING IN RISK PARITY STRATEGIES, NORTH AMERICAOCTOBER 2012 Considering the use of risk PARITY strategies for balancing risk and protecting members from volatility in their partnermedia partnerSPUBLISHED BYCLEAR PATH ANALYSIS: INVESTING IN RISK PARITY STRATEGIES, NORTH AMERICA2 MaDS GOSvIGChief Executive OfficerNOW: PensionsRUTH HUGHES-GUDEnManaging Director - US Institutional Sales & Service TeamInvescoPaTRICk BaUMannAssistant TreasurerHarris CorporationROn vIRTUEI nvestments ManagerJM Family Enterprises SCOTT WOLLE Chief Investment Officer.

2 Global Asset AllocationInvescoSECTIOn 1 white PaPERRisk PARITY : Challenging the Traditional asset allocation Framework of Target Date Funds PETER GaLLaGHER, National Sales Manager, Institutional Business Development, Invesco SCOTT WOLLE, Chief Investment Officer, Global Asset Allocation.

3 Invesco SECTIOn 2 9 InTEGRaTInG RISk PARITY STRaTEGIES InTO a DB anD DC PEnSIOn PLanS ROUnDTaBLE DEBaTE 10 What are The Merits of Risk PARITY Strategies in the Modern Investment Portfolio and How Can They Equalize Risk in an Era of Market volatility?

4 MODERaTOR: nOEL HILLMann, Managing Director & Head of Publishing, Clear Path AnalysisPanELLISTS: RUTH HUGHES-GUDEn, Managing Director- US Institutional Sales & Service Team, Invesco PaTRICk BaUMann, Assistant Treasurer, Harris Corporation ROn vIRTUE, Investments Manager, JM Family Enterprises SPECIaL InTERvIEW 13 How has Risk PARITY Proved Itself in the European Investment Market? InTERvIEW: nOEL HILLMann, Managing Director & Head of Publishing, Clear Path AnalysisInTERvIEWEE: MaDS GOSvIG, Chief Executive Officer, NOW: Pensions ContentSINVESTING IN RISK PARITY STRATEGIES, NORTH AMERICACLEAR PATH ANALYSIS.

5 INVESTING IN RISK PARITY STRATEGIES, NORTH AMERICA3media partnerSreport partnerInvesco is one of the largest global, independent investment managers, with more than 600 dedicated investment professionals worldwide and an operational network spanning more than 20 countries. Our philosophy is Intentional InvestingSM - the science and art of INVESTING with purpose, prudence and diligence. Intentional INVESTING forms the foundation of our investors first approach, exemplified by our commitment to investment excellence, depth of investment capabilities and organizational strength.

6 TO REaD MORE FREE REPORTS : +44 (0) 207 936 9450 E: BBY DE FRaInEMarketing & Operations Manager+44 (0) 207 936 9450 JIM aLLEnGraphic Design & Web Manager+44 (0) 207 936 9475nOEL HILLMannManaging Director & Head of Publishing+44 (0) 207 936 9447 JESSICa MCGHIEP ublisher & PR Manager+44 (0) 207 936 9357 JEnnIFER MEnOSCaLMarketing Assistant+44 (0) 207 936 9450 FOR MORE InFORMaTIOn vISIT: T: +44 (0) 207 936 9450 E: Path analysis specialises in the publishing of high quality, free online reports in the financial services and investment sectors, including.

7 FInanCE TECHnOLOGY FUnD ManaGEMEnT OPERaTIOnS InSURanCE InvESTMEnT STRaTEGY PEnSIOnS aDMInISTRaTIOn & OPERaTIOnS PRIvaTE & RETaIL InvESTMEnTDOWNLOAD FREEFINANCIAL REPORTS FROM ATION HEDGING & REAL RETURN 2012 PUBLISHED BYOctOBEr 2012 Exploring the outlook for inflation, setting an asset allocation plan, creating out performance (in either a high or recessionary inflation environment) as well as examining the tools and processes to manage the risks partnerSSponSorrEPOrt PartnEr INVESTING IN RISK PARITY SOLUTIONS, NORTH AMERICAOCTOBER 2012 Considering the use of risk PARITY solutions for balancing risk and protecting members from volatility in their partnermedia partnerSPUBLISHED BYFUND OUTSOURCING 2012 PUBLISHED BYSEPTEMBER 2012 The second annual report where hedge fund, private equity.

8 Traditional and alternative fund managers share their insights regarding outsourcing key functions to a third party in the current market partnerSSponSorSGLOBAL EXCH ANGE TECHNOLOGY & DATAPUBLISHED BYJUNE 2012 The global exchange community, comes together, with technology solution providers to consider how the best exchange groups are innovating and upgrading systems and data partnerSSponSorSOLV E NC Y II: THE GLOBAL DIMENSIONPUBLISHED BYSEPtEmBEr 2012 Solvency II will drive a sea change in how insurers do business here in Europe and further afield, this report looks at some of the key issues those on the global stage will byAuto-EnrolmEnt for PEnsion schEmEsPUBLISHED BYJanUarY 2012 THE onLInE rEPorT wHErE PEnSIon ScHEmE managErS, Hr anD FInancE DIrEcTorS DIScUSS kEY ISSUES F acED wITH aUTo-EnroLmEnT, ParTIcULarLY F rom an SmE PErSPEcTIvE.

9 AnD waYS To ovErcomE THE cHaLLEngES oF rESPonSIBILITY, FLExIBILITY anD coSTS oF partnersCLEAR PATH ANALYSIS: INVESTING IN RISK PARITY STRATEGIES, NORTH AMERICA5white paperRisk PARITY : Challenging the Traditional Asset Allocation Framework of Target Date FundsSince the Pension Protection act of 2006, target date funds (TDFs) have been the focus of many discussions by those who are focused on the retirement security of plan participants. at the same time, defined contribution (DC) plans are in the midst of a major shift from supplemental assets for retirees to the primary means of saving for retirement.

10 Combine these trends with the fact that TDFs are projected to be the largest recipient of future DC participant contributions, and you definitely have something worth monitoring closely. The to vs. through glide path debate is important, but the backbone of the TDF the asset allocation framework itself and its embedded assumptions certainly deserves more attention. THE CHaLLEnGE anD RISk OF TaRGET DaTE FUnDSFrom a fiduciary perspective, the focus and resources dedicated to a plan s TDFs will likely increase due to the expected concentration of assets that is expected to occur in the near future.