REG-City Merchants HYT: Annual Financial Report

City Merchants High Yield Trust plc

Annual Financial Report Announcement

For the year ended 31 December 2009

Financial Information

Performance Statistics

At At

31 December 31 December %

2009 2008 Change

Total Return*

Total return per ordinary share +85.6

FTSE All-Share Index +30.1

FTSE Government Securities - All Stocks -1.2

Capital Return

Net asset value per ordinary share 156.69p 97.45p +60.8

Mid-market price per ordinary share 158.00p 104.50p +51.2

Premium per ordinary share 0.8% 7.2%

FTSE All-Share Index +25.0

FTSE Government Securities - All Stocks -5.4
Index

Gearing

Asset gearing 101 110

Actual gearing 110 130

Total expense ratio 1.2% 1.4%

* Source: Thomson Reuters Datastream

Chairman's Statement

2009 was a year of unprecedented volatility in high-yield markets. In the early
part of the year many of the Company's positions continued to be marked down
and the net asset value (`NAV') fell to 81p per ordinary share in mid-March.

Your Managers maintained their conviction with the result that the NAV had
recovered to 156.7p at the year-end. Overall, in the year under review the
Company achieved a total return of 85.6%. This compares with a return of 20.8%
in the Investment Management Association Sterling Strategic Bond Index, an
index of the performance of funds with similar investment objectives. Your
Company is the top performing fund compared to this index over one year to 31
December 2009 and, once again, over 5 years. After a disappointing 2008, I am
pleased to report a good performance in 2009.

As detailed in the Directors' Report in the Annual Financial Report, the
Company is proposing to pay total dividends in relation to 2009 of 13p per
ordinary share. 10.6 p of this dividend relates to the net income of the year
and the balance to the increase in valuation of the deferred tax asset.

Since the merger with `old' City Merchants in 2005, the Company's surplus
management expenses have reduced the tax charge to a negligible amount,
increasing the income available to be distributed as dividend.

Although this situation will come to an end during 2010, your Board aims to pay
dividends in relation to 2010 of 11p per ordinary share which, with the
additional 1p being paid in relation to 2009, will ensure shareholders receive
12p during 2010.

For 2011 and future years, the Company will again have a tax charge on most of
its income which will reduce the income available for dividend. Your Board will
continue to seek to provide a high level of dividend income relative to
prevailing interest rates but shareholders should not anticipate the
maintenance of annual dividends at present levels.

The Manager's Investment Report reviews the Company's performance during the
year and gives further details of the portfolio managers' strategy and their
view of the outlook for your Company. While the exceptional returns in 2009
will not be repeated, the Board believes that the portfolio is well-positioned
to provide opportunities for modest growth while continuing to produce an
attractive level of income for shareholders.

Share Issues

The Company raised £18.1 million by the issuance of 11,889,819 new ordinary
shares in connection with a scheme of reconstruction of another investment
trust and a simultaneous placing and offer for subscription. The issue became
effective on 30 October 2009 and the new ordinary shares were allotted at a
premium of 2% to NAV at the close of business on 28 October 2009.

Under the authority granted by shareholders at the 2008 and 2009 AGMs,
2,150,000 new ordinary shares were issued during the year at an average premium
of 4.88% to the NAV prevailing at the time of issue, raising around £2.5
million for the Company. This enhanced net assets by approximately £480,000,
providing a modest increase in NAV for existing shareholders.

VAT on Management Fees

The recovery of VAT previously paid on management fees, which had been ongoing
through 2008, is now substantially complete. £469,000 is included in the
results of the Company for the year ended 31 December 2009 in respect of
refunds of VAT on management fees recovered by the `old' City Merchants High
Yield Trust plc to the date of the merger. The Company recovered a further £
25,000 VAT paid on management fees for the period 2004 to 2007 and £14,000 in
interest. All amounts were credited to capital, apart from £16,000, adding 0.7p
to the NAV based on the share capital at the year-end.

The Board expects the Company to receive further refunds of VAT and interest
for earlier periods from 1990 to the 2005 merger date from the previous
manager, Midas Capital (who acquired Exeter Fund Managers), but the amounts are
not yet known.

Board Renewal

As already announced in my Statement last year, Win Robbins joined the Board in
March 2009 and Jonathan Hubbard-Ford stepped down after the last AGM in June
2009.

Robin Baillie had intimated last year that he would stand down from the Board
following the 2010 Annual General Meeting. He has been a Director of your
Company and its predecessor since its inception in May 1991. As senior
non-executive director, he has been very helpful to me since I became Chairman.
We thank him for all his hard work and substantial contribution to the Company.
Following Robin's retirement, it is envisaged that the Board will continue with
five Directors.

Annual General Meeting (`AGM')

As special business at the AGM, two Ordinary Resolutions and three Special
Resolutions will be proposed as follows:

Ordinary Resolution

1. Continuation of the Company

With Ordinary Resolution 5 the Directors seek to be released from their
obligation under the Company's Articles of Association to convene an
Extraordinary General Meeting of the Company to be held by 30 June 2010 at
which an extraordinary resolution would be proposed to wind up the Company.

2. Issuance of New Shares and Disapplication of Pre-emption Rights

With Ordinary Resolution 6 the Board is seeking to renew its authority to issue
up to 10% of the Company's issued ordinary share capital. With Special
Resolution 7 the Directors are seeking authority to issue new ordinary shares
for cash pursuant to the authority sought by Resolution 6, disapplying
pre-emption rights, up to an aggregate nominal amount of £145,598 (being
approximately 10% of the Company's issued ordinary share capital). This will
allow shares to be issued to new shareholders without having to be offered to
existing shareholders first, thus broadening the shareholder base of the
Company.

The two Resolutions provide the Directors with a degree of flexibility to
increase the size of the Company by the issue of new shares should any
favourable opportunities arise to the advantage of shareholders. The Directors
would not use the authority so as to dilute the interests of existing
shareholders by issuing shares at a price which is less than the NAV
attributable to the shares. These authorities will expire at the AGM in 2011.

3. Share Buybacks

With Special Resolution 8 your Board seeks to renew the authority to buy back
up to 14.99% of the Company's issued ordinary shares. Acquisitions under this
authority will be subject to restrictions referred to in the Notice of AGM.
Again, the interests of existing shareholders will be protected and the
authority will expire at the AGM in 2011.

4. Calling General Meetings at 14 days' notice

New UK legislation implementing the EU Shareholder Rights Directive has, with
effect from 3 August 2009, increased the notice period for a general meeting
from 14 days to 21 days. However, companies are able to pass a special
resolution each year permitting them to continue to call general meetings
(other than AGMs) on 14 days' notice if they allow voting by electronic means.

With Special Resolution 9 the Board is therefore asking for the authority to
call any general meetings other than AGMs on 14 days' notice, should that be
necessary.

Your Directors have carefully considered all the resolutions proposed in the
Notice of Annual General Meeting and believe them to be in the best interests
of the Company and its shareholders. The Directors therefore recommend that
shareholders vote in favour of each resolution.

I look forward to seeing shareholders at the Annual General Meeting of the
Company on 2 June 2010 when they will have an opportunity to meet members of
the Board and the portfolio managers.

Clive Nicholson

Chairman

22 April 2010

Manager's Investment Report

Market Background

The year commenced with risk markets volatile, equity markets reaching fresh
lows and credit spreads close to or surpassing their previous wides as economic
data continued to deteriorate. According to data from Merrill Lynch, European
high-yield spreads began the period at 2204bps, falling to 1825bps in January
before weakness saw them return to 2200bps during March. However, credit
markets rallied from mid-March as sentiment improved and economic data took a
less negative tone. High-yield spreads tightened significantly, ending the year
at 755bps, with the Merrill Lynch Euro High Yield Index seeing a total return
of 60.7%, in sterling terms, over the year. The banking sector was particularly
strong after a number of banks paid back government cash injections, reported
earnings that beat analysts' expectations and began to recapitalise. Sterling
Tier 1 bank debt, which declined by 39% in the first quarter of 2009,
subsequently rose by 99% over the remainder of the year. By way of example, the
Company's UBS 8.836% tier one holding fell from 69.4 (1 January) to 58.7 (31
March), before recovering to 98.0 (31 December). On the other hand, government
bond markets gave back much of their 2008 gains as they weakened following the
increase in risk appetite and concerns over the supply of government debt
needed to fund economic stimulus measures.

The new issue market saw record issuance for investment-grade bonds in 2009, as
companies' funding requirements were met by increased demand from inflows into
corporate bond funds. Activity was supported by the low risk-free rate and the
lack of attractively priced funding from banks. Typically, new issues were at a
discount to the secondary market and then heavily oversubscribed, trading up
after their issue. From the second quarter, the market became increasingly
supportive of high-yield issuers, having seen no issuance at all in 2008.
Issuers included Wind Telecom (11.75% coupon), IFCO Systems 10% and Pernod
Ricard 7%. Fiat, which issued a three-year bond in July at 9%, was able to
issue at 7.75% by September, attracting orders worth €8 billion for the €1.25
billion bond.

Although there has been an increase in defaults, with GM and Chrysler grabbing
the headlines, the number of defaults has remained lower than 2002's peak. With
the GM default having been anticipated by the market, the portfolio's holdings
in GM bonds saw price increases of 40% and 74% over the calendar year. Having
forecast in March that European high-yield defaults would peak at 21% in the
final quarter of 2009, Moody's reported in December the first decline in
defaults in the current cycle as the 12-month issuer-weighted default rate fell
from 10.5% in November to 10.2%. The market was unconcerned when US lender CIT
became the fifth largest bankruptcy ever in October, demonstrating how much
sentiment has improved since the Lehman Brothers bankruptcy.

Support from governments and policymakers continued. Central banks continued to
cut interest rates and inject liquidity. The US Federal Reserve's balance sheet
ballooned and there was a sharp fall in the amount of commercial paper
outstanding. The Federal Reserve also announced it would buy up to US$1.2
trillion of government and mortgage-related debt to help boost lending and
promote economic recovery. In the UK there was unconventional support in the
form of quantitative easing as the Bank of England began purchasing up to £200
billion of both government and corporate bonds. UK economic growth remained
weak. Third-quarter GDP was reported to have fallen by 0.2%, marking the sixth
consecutive quarterly fall, the longest contraction since quarterly records
began in 1955. This meant that UK GDP fell by almost 6% in the recession. The
initial estimate of fourth-quarter GDP growth was just 0.1%.

Portfolio Strategy

Having started the year at 97.45p, the Company's NAV per share fell to a low of
81.05p in March, before recovering to 156.69p at the end of the year.

The year began in the immediate aftermath of the collapse of Lehman Brothers
and the biggest reshaping of the financial landscape since the 1930s. Many of
the Company's positions had been severely marked down in the previous months
and the portfolio managers did not want to lock in losses by selling positions
that they expected to recover. They took the opportunity to reduce the
Company's borrowings and maintained gearing at a comfortable level. With
hindsight, the portfolio should have been positioned more defensively in 2008.
However, with markets recovering, the managers maintained their conviction and
saw many of the holdings go on to produce healthy returns. For example, Ford
Motors 7.45% recovered from US$0.23 to US$0.54 over the first half of 2009 and
went on to end the year at US$0.88, while the equity holding in Gate Gourmet
recovered from SFr5 to SFr34.7, an increase of almost 600%. Nonetheless, some
positions are unlikely to recover fully and it will be necessary to consider
the merits of retaining them.

In terms of portfolio activity, the managers continued to buy on weakness,
adding positions across high-yield and investment grade and in subordinated
bank capital, where they added to holdings such as HSBC and Credit Agricole at
attractive levels. HSBC 5.844% tier one, for example, was purchased at 42p in
late February and was trading at around 81p by the end of the year. A number of
new issues in the first half of the year, such as Wind Telecom 11.75% and IFCO
Systems 10%, were also added.

Over the second half of the year, and with primary markets once again
supporting high-yield issuers, the portfolio managers added a number of new
positions. These included investments in cable company UPC 9.625%, services
provider ISS 11%, Central Europe Distribution 8.875%, Smurfit (packaging)
7.75%, Virgin Media 8.875% and Agile Property 10%, as well as in several other
new issues on which they subsequently took profits. They also added
higher-yielding investment-grade positions, such as Catlin Insurance 7.249%,
Friends Provident 12.0% and London Stock Exchange 9.125%.

In terms of strategy, the portfolio managers believe that some of the more
attractive investment opportunities are to be found among better quality
high-yield issuers and higher-yielding investment-grade names. They also see
selective value in banks, insurance names and other financials where spreads
and yields remain attractive. On lower quality debt, such as subordinated
financials, spreads remain well above historical levels with yields typically
around 7%-10% on tier one debt. Bank debt has performed exceptionally well from
the lows in March 2009 and there are many examples of bonds that have tripled
in value. Nevertheless, despite the beginning of a recapitalisation of the
banking sector and a better understanding of the risk of holding these bonds,
the managers believe that there remains opportunity for further improvement.

Overall, there is reason to be pleased with the recovery in the NAV and with
the maintenance of the dividend. The Company remains modestly geared and there
is potential for the NAV to improve.

Outlook

Looking ahead, the asset class is in much better shape than it was a year ago,
default risk has declined significantly and values have recovered 2008's
losses. The past year has been one of the most extraordinary periods ever in
fixed-interest markets and the exceptional returns in 2009 will not be
repeated. Nonetheless, corporate bond markets began the new year strongly,
driven by positive sentiment and demand for income generating assets. Despite
lingering concerns over sovereign debt, credit spreads tightened further with a
rise in investor risk appetite leading to better performance from lower quality
bonds. According to data from Merrill Lynch, sterling BBB rated spreads
decreased by 60bps, while European high-yield spreads declined by 132bps over
the first quarter of 2010. Financials continued to improve as banks rebuilt
their balance sheets. For example, in March RBS offered to buyback some Tier 1
preference shares and exchange some Upper Tier 2 bonds for senior paper in
order to increase its core capital base, making it less likely that it will
need to call on the £8 billion emergency line the Government put in place last
November. Tier 1 bank spreads narrowed by a further 82bps. In primary markets,
there was renewed activity led by financials, while high-yield issues continued
to find support. In January, Moody's forecast that defaults will fall to just
2% by February 2011.

Although the past year's extraordinary gains will not be repeated, spreads on
sections of the market remain generous by historical standards and there is
reason to believe there is the potential for further modest upside from current
levels. While the average bond price within the portfolio recovered from 44 in
January 2009 to around 75 at the year-end, the managers think that with many
credits still offering double-digit yields and both markets and corporate
issuers in a recovery phase, high-yield bond markets continue to offer
opportunities. They believe the portfolio remains an attractive proposition as
an income-producing vehicle.

Invesco Asset Management Limited

Manager

Paul Read Paul Causer

Portfolio Managers

22 April 2010

Investments in Order of Valuation

at 31 December 2009

Issuer Issue Moody/S Sector Country of Market % of
&P
Incorporation Value Portfolio
Rating
£'000

Ford Motor 7.45% Jul 16 31 Caa1/ Consumer Goods USA 2,736 2.4
CCC

4.25% Nov 15 16 Caa1/ 2,489 2.2
Cnv CCC

5,225 4.6

LBG Capital 7.975% Sep 15 24 Ba3/BB- Financials UK 1,913 1.7

7.869% Aug 25 20 Ba3/BB- 800 0.7

6.439% May 23 20 Ba3/BB- 663 0.6

16.125% Dec 10 Ba2/BB 127 0.1
24

3,503 3.1

Premier Farnell Pfd 89.2P Cum NR/NR Industrials UK 3,025 2.6
Cnv Red

Aviva 6.125% Perpetual A3/BBB+ Financials UK 2,640 2.3

Intergen 9.5% Jun 30 17 Ba3/BB- Oil & Gas Holland 2,110 1.8

8.5% Jun 30 17 Ba3/BB- 224 0.2

2,334 2.0

Ineos 7.875% Feb 15 16 Caa3/ Basic Materials UK 2,313 2.0
CCC-

Balfour Beatty Prf 10.75P Gross NR/NR Industrials UK 2,157 1.9

Societe Generale Fltg 9.375% A1/BBB+ Financials France 912 0.8
Perpetual

Fltg 7.756% A1/BBB+ 828 0.7
Perpetual

Fltg 8.875% A1/BBB+ 297 0.3
Perpetual

2,037 1.8

Wind Acquisition 11.75% Jul 15 17 NR/NR Consumer Services Italy 967 0.8

9.75% Dec 01 15 NR/NR 946 0.8

1,913 1.6

UPC Germany 9.625% Dec 01 19 B3/B- Financials Germany 1,804 1.6

FMG Finance 9.75% Sep 01 13 B2/B Basic Materials Australia 1,786 1.6

Rexam Fltg 6.75% Jun Ba2/BB Industrials UK 1,781 1.6
29 67

First Hydro 9% Jul 31 21 NR/NR Utilities UK 1,709 1.5
Finance

Motors 8.375% Jul 05 33 WR/NR Consumer Goods USA 1,306 1.1
Liquidation

8.375% Jul 15 33 WR/NR 334 0.3

1,640 1.4

Central Europe 8.875% Dec 01 16 B1/B+ Consumer Services Spain 889 0.8

Distribution 8% Jul 25 12 B2/B 711 0.6

1,600 1.4

GMAC 6.625% Dec 17 10 Ca/CCC Financials USA 1,132 1.0

7.5% Dec 31 13 NR/CCC 141 0.1

8% Dec 31 18 Ca/CC 155 0.1

Prf Perpetual NR/C 161 0.1
Series G 7%

1,589 1.3

Pipe 9.75% Nov 01 13 Caa1/ Basic Materials UK 815 0.7
CCC-

7.75% Nov 01 11 B1/B- 679 0.6

1,494 1.3

Edcon Fltg Jun 15 15 Caa1/ Consumer Services South Africa 906 0.8
CCC+

Fltg Jun 15 14 B2/B+ 562 0.5

1,468 1.3

Gategroup Chf 5 Equity Consumer Goods Switzerland 1,408 1.2

Rea Finance 9.5% Dec 31 17 NR/NR Consumer Goods Holland 1,395 1.2

Unity Media 10.125% Feb 15 B2/B+ Consumer Services Germany 975 0.9
15

10.375% Feb 15 B2/B+ 325 0.3
15

8.75% Feb 15 15 B2/B+ 92 0.1

1,392 1.3

C10 Capital Fltg 6.277% May NR/NR Financials Mexico 1,339 1.2
09 49

Citigroup 7.5% Pref NR/NR Financials USA 1,297 1.1

Common Equity 41 0.0

1,338 1.1

Lucent 6.45% Mar 15 29 B1/B Technology USA 887 0.8
Technologies

6.5% Jan 15 28 B1/B 440 0.3

1,327 1.1

PTS Acquisition 9.75% Apr 15 17 Caa1/B- Healthcare USA 1,302 1.1

Legrand 8.5% Feb 15 25 Baa2/ Industrials France 1,298 1.1
BBB

General Accident Pfd 8.875% Cum NR/NR Financials UK 1,288 1.1
Irrd

Virgin Media 8.875% Oct 15 19 B2/B Consumer Services UK 1,025 0.9

Finance 9.75% Apr 15 14 WR/B 220 0.2

1,245 1.1

American Fltg 8.625% May Ba2/BBB Financials USA 580 0.5
22 38

International 8.175% May 15 58 Ba2/BBB 409 0.4

Fltg 4.875% Mar Ba2/BBB 245 0.2
15 67

1,234 1.1

NXP 8.625% Oct 15 15 C/CC Industrials Holland 666 0.6

7.875% Oct 15 14 C/CC 562 0.5

1,228 1.1

Catlin Insurance Fltg 7.249% NR/BBB+ Financials USA 1,198 1.0
Perpetual

Hertz 10.5% Jan 01 16 B3/CCC+ Consumer Goods USA 661 0.6

7.875% Jan 01 14 B2/CCC+ 421 0.4

1,082 1.0

Iron Mountain 6.75% Oct 15 18 B2/B+ Support Services USA 1,033 0.9

Kabel 10.75% Jul 01 14 B2/B Consumer Services Germany 702 0.6
Deutschland

10.625% Jul 01 B2/B 324 0.3
14

1,026 0.9

UBI Banca 8.75% Oct 29 12 NR/NR Financials Italy 1,005 0.9
International Cnv

Novae Fltg 8.375% Apr Ba1/NR Financials UK 1,000 0.9
27 17

Freescale Fltg Dec 15 14 Caa2/ Technology USA 999 0.9
Semiconductor CCC

Nordic Telephone 8.25% May 01 16 B1/BB- Telecommunications Denmark 951 0.8

Royal & Sun Fltg 8.5% Baa1/ Financials UK 918 0.8
Perpetual BBB+
Alliance

FCE Bank 9.375% Jan 17 14 B3/B Financials UK 902 0.8

Softbank 7.75% Oct 15 13 Ba2/BB Technology Japan 902 0.8

MWB 9.75% Jun 30 12 NR/NR Financials UK 900 0.8

Nielsen Finance 9% Aug 01 14 Caa1/B- Consumer Services USA 897 0.8

Reynolds 7.75% Oct 15 16 B1/BB- Industrials USA 897 0.8

Sl Finance 6.75% Perpetual A3/A- Financials UK 882 0.8

ASML 5.75% Jun 13 17 Baa3/NR Technology Holland 879 0.8

Smurfit Kappa 7.75% Nov 15 19 Ba2/BB Basic Materials Ireland 875 0.8

Acquisition

Standard 9.5% Dec 24 14 Baa1/ Financials UK 339 0.3
Chartered BBB+

Fltg Perpetual Baa1/NR 338 0.3

8.125% Perpetual Baa2/ 189 0.2
BBB

866 0.8

CGG Veritas 7.75% May 15 17 Ba3/BB Oil & Gas France 860 0.7

Stena 6.125% Feb 01 17 Ba2/BB+ Financials Sweden 855 0.7

Heating Finance 7.875% Mar 31 14 B2/B Financials UK 851 0.7

TRW Automotive 6.375% Mar 15 14 Caa1/B- Consumer Goods Namer 831 0.7

Rhodia Fltg Oct 15 13 B1/BB- Basic Materials France 826 0.7

Tereos Europe 6.375% Apr 15 14 B1/BB Basic Materials France 826 0.7

Ecclesiastical Pfd 8.625% Non NR/NR Financials UK 795 0.7
Cum Irrd

Insurance
Office

Codere 8.25% Jun 15 15 B2/B Consumer Services Spain 791 0.7

Grohe Fltg Jan 15 14 B3/B- Utilities Germany 751 0.7

Hellas Telecom Fltg Oct 15 12 Caa2/CC Telecommunications Greece 729 0.6

Fortis Bank Fltg Perpetual Ba3/BB Financials Belgium 706 0.6
Cnv

BCM Ireland Fltg Feb 15 17 NR/CCC+ Financials Ireland 689 0.6

Lloyds TSB 7.875% Perpetual B3/CC Financials UK 526 0.5

6.375% Apr 15 14 Aa3/A+ 160 0.1

686 0.6

Royal Bank of Fltg 7.64% B3/CC Financials UK 669 0.6
Scotland Perpetual

Carlson Wagonlit Fltg May 01 15 Caa2/ Consumer Services Holland 662 0.6
CCC-

Lottomatica Fltg 8.25% Mar Ba3/BB Consumer Services Italy 636 0.6
31 66

Peabody Energy 4.75% Dec 15 66 Ba3/B+ Basic Materials USA 632 0.6
Cnv

Agile Property 10% Nov 14 16 Ba3/BB Financials China 627 0.6

Ashtead 8.625% Aug 01 15 B2/B+ Industrials UK 312 0.3

8.625% Aug 01 15 B2/B+ 312 0.3

624 0.6

Ashtead Capital 9% Aug 15 16 B2/B+ Industrials UK 621 0.5

Northern Rock 9.375% Oct 17 21 Ca/BB Financials UK 590 0.5

8.399% Perpetual Ca/C 6 0.0

8% Pref WR/C 25 0.0

621 0.5

Pfleiderer Fltg 7.125% WR/NR Industrials Holland 616 0.5
Finance Perpetual

Expro Fin 8.5% Dec 15 16 B1/B+ Oil & Gas UK 615 0.5
Luxembourg

Friends 12% May 21 21 NR/BBB+ Financials UK 610 0.5
Provident

UBS Capital Fltg 8.836% Baa3/ Financials UK 610 0.5
Securities Perpetual BBB-

Polypore 8.75% May 15 12 B3/B- Healthcare USA 600 0.5

Petroplus 9.375% Sep 15 19 B1/B+ Financials Switzerland 308 0.3
Finance

4% Oct 16 15 Cnv NR/B+ 286 0.2

594 0.5

Norwegian Energy 12.9% Nov 20 14 NR/NR Oil & Gas Norway 590 0.5

Independent News Ord Eur 0.05 Equity Consumer Services UK 468 0.4
&

Media 5.75% May 17 09 NR/NR 111 0.1
(Default)

579 0.5

Lighthouse 8% Apr 30 14 Caa1/B Consumer Services Italy 578 0.5
International

Peel 9.875% Apr 30 11 NR/NR Financials UK 541 0.5

Linde Finance Fltg 8.125% Jul Baa3/ Consumer Goods Holland 526 0.5
14 66 BBB-

London Stock 9.125% Oct 18 19 Baa2/A- Financials UK 523 0.5
Exchange

Scottish Mutual 7.25% Perpetual Baa3/ Financials UK 522 0.5
BBB

Old Mutual 8% Perpetual Baa3/NR Financials UK 520 0.4
Capital Fund

Barclays Bank Fltg 14% Baa2/ Financials UK 511 0.4
Perpetual BBB+

William Hill 7.125% Nov 11 16 Ba1/BB+ Consumer Services UK 506 0.4

Axa Fltg 6.379% Baa1/ Financials France 495 0.4
Perpetual BBB+

Ifco Systems 10% Jun 30 16 Ba3/BB- Industrials Holland 486 0.4

PE Paper Escrow 11.75% Aug 01 14 Ba2/BB Basic Materials Austria 486 0.4

Luxfer Fltg Feb 06 12 Caa1/NR Industrials UK 485 0.4

ISS Financing 11% Jun 15 14 NR/B Financials UK 484 0.4

HeidelbergCement 8.5% Oct 31 19 B1/B+ Industrials Germany 469 0.4

Six Flags 12.25% Jul 15 16 WR/D Consumer Services USA 453 0.4

CEVA 12% Sep 01 14 NR/CCC Financials UK 451 0.4

Campofrio 8.25% Oct 31 16 B1/B+ Consumer Goods Spain 449 0.4

Rexel 8.25% Dec 15 16 B1/B+ Support Services France 448 0.4

Ardagh Glass 8.875% Jul 01 13 B3/B- Financials Holland 446 0.4

Warner Music 8.125% Apr 15 14 B1/B Consumer Services USA 445 0.4

Rentokil 5.75% Mar 31 16 NR/BBB- Support Services UK 443 0.4

Novasep 9.625% Dec 15 16 B3/B Basic Materials France 435 0.4

International 4.75% Jun 05 15 NR/BB Financials UK 432 0.4
Power Cnv

Voestalpine Fltg 7.125% NR/NR Basic Materials Austria 423 0.4
Perpetual

Australasian Ord Equity Basic Materials Australia 422 0.4
Resources

Travelport 10.875% Sep 01 Caa1/ Industrials USA 409 0.4
16 CCC

HSBC Capital Fltg 5.844% A3/A Financials UK 406 0.4
Funding Perpetual

Boats 11% Mar 31 17 NR/NR Financials Holland 402 0.3
Investments

Ausdrill Ord Equity Industrials Australia 394 0.3

Legal & General Fltg 6.385% Baa1/A- Financials UK 376 0.3
Perpetual

SPCM 8.25% Jun 15 13 B3/B+ Basic Materials France 359 0.3

Beverage 9.5% Jun 15 17 Caa1/B- Industrials Switzerland 348 0.3
Packaging

Fresenius US 9% Jul 15 15 Ba1/BB Healthcare USA 341 0.3

Cirsa Finance 7.875% Jul 15 12 B3/B+ Consumer Goods Czech 339 0.3

Wells Fargo Fltg 9.75% Ba1/A- Financials USA 331 0.3
Perpetual

Inmarsat 7.375% Dec 01 17 Ba2/BB+ Telecommunications UK 317 0.3

Alliance 8% Dec 31 13 Cnv Healthcare UK 313 0.3
Pharmaceutical

Santander Fltg 11.3% A2/A- Financials Spain 166 0.1
Perpetual

Fltg 6.5% Jul 27 Aa3/AA- 144 0.1
19

310 0.2

Allied Irish 12.5% Jun 25 19 A2/A- Financials Ireland 307 0.3
Banks

Pregis 12.375% Oct 15 Caa2/ Basic Materials USA 300 0.3
13 CCC+

Nexans 1.5% Jan 01 13 NR/BB+ Industrials France 286 0.2
Cnv

ABN Amro Fltg 5% Ba2/BB Financials Holland 275 0.2
Perpetual

ITV 4% Nov 09 16 Cnv B1/NR Consumer Services UK 273 0.2

Rothschilds Fltg Perpetual NR/NR Financials UK 263 0.2

Dixons 6.125% Nov 15 12 B1/NR Consumer Services UK 259 0.2

Korreden 11% Aug 01 14 NR/NR Financials France 237 0.2

HTM Sport & 10% Aug 01 12 NR/CCC- Consumer Goods Austria 231 0.2
Freizeit

Deutsche Fltg Feb 09 10 A3/BBB Financials Germany 221 0.2
Pfandbriefbank

SLM Fltg Dec 15 10 Ba1/ Financials USA 205 0.2
BBB-

Mondas 8% Oct 31 11 Cnv NR/NR Technology UK 200 0.1

Skipton Fltg 10% Dec 12 Ba2/NR Financials UK 200 0.1
18

Cattles 8.125% Jul 05 17 C Financials UK 166 0.1

6.875% Jan 17 14 C 6 -

172 0.1

Alcatel-Lucent 5% Jan 01 15 Cnv NR/B- Technology France 156 0.1

M&G Finance Fltg 7.5% NR/NR Industrials Brazil 154 0.1
Perpetual

Timberwest Stapled Unit Equity Basic Materials Canada 154 0.1
Forest

Credit Agricole Fltg 7.589% Aa3/A- Financials France 144 0.1
Perpetual

Investec Tier Fltg 7.075% B1/NR Financials UK 125 0.1
Perpetual

Lecta Fltg Feb 15 14 Caa1/B- Industrials France 103 0.1

Pearl Fltg 6.586% NR/NR Financials UK 90 0.1

Head Ord Equity Consumer Goods Holland 88 0.1

Pittards Ord 1P Equity Consumer Goods UK 82 0.1

Brazilian Common NR/NR Basic Materials Canada 74 0.1
Resources

Thule Drilling 12% Nov 15 49 NR/NR Basic Materials Norway 62 0.1

Corporate 10% Apr 28 11 NR/NR Support Services UK 56 -
Services

Chesapeake 7% Dec 15 14 WR/NR Basic Materials USA 31 -

10.375% Nov 15 WR/NR 15 -
11

46 -

GMA Resources Ord 1p Equity Basic Materials UK 31 -

Welsh Power `C' Shares Equity Utilities UK 23 -
(Unquoted)

Bradford & Fltg 6.462% C/NR Financials UK 22 -
Bingley Perpetual

Saphir Fltg 6.8509% C/D Financials Ireland 18 -
Perpetual

Mecachrome 9% May 15 14 WR/NR Industrials USA 18 -

International

Hollandwide 0.0% Aug 01 14 NR/NR Financials Holland 16 -
Parent

Ashpol 10% Cum Prf 100P NR/NR Financials UK 5 -

Advanced Ord (Post Recon) Equity Industrials Australia 5 -
Magnesium

114,652 100.0

Principal Risks and Uncertainties

The principal risk factors relating to the Company can be divided into the
following areas:

Investment Policy (incorporating the Investment Objective) and Process

The Company's investment objective is described on page 24 in the Annual
Financial Report. There is no guarantee that the Company's investment objective
will be achieved or will provide the returns sought by the Company.

Portfolio performance is substantially dependent on the performance of
fixed-interest and high-yielding stocks in the UK and elsewhere in the
Company's investment universe. These stocks are particularly influenced by
prevailing interest rates, government monetary policy and by demand for income.
The portfolio managers strive to maximise both capital growth and high income
from the investments and the Board naturally recognises the external influences
on portfolio performance.

As part of the Company's overall strategy, the Board will continue to seek to
manage the Company's affairs so as to maximise returns for shareholders. The
longer-term aim is to continue to increase the size of the Company by a
combination of growth in underlying asset values and by the issue of additional
equity capital. The Directors believe that this would continue to make the
Company's shares attractive to a broad spectrum of investors and improve
liquidity.

Risk management is an integral part of the investment management process. The
Manager effectively controls risk by ensuring that the Company's portfolio is
appropriately diversified. In-depth and continual analysis of the fundamentals
of all holdings should give the Manager a full understanding of the financial
risks associated with any particular stock.

Market Movement and Portfolio Performance

The majority of the Company's investments are traded on a number of the world's
major securities markets. The principal risk for investors in the Company is of
a significant fall in the markets and/or a prolonged period of decline in the
markets relative to other forms of investment. The value of investments held
within the portfolio is influenced by many factors including the general health
of the world economy, interest rates, inflation, government policies, industry
conditions, political and diplomatic events, tax laws and environmental laws
and by changing investor demand. The Manager strives to maximise the return
from the investments held, but these investments are influenced by market
conditions and the Board acknowledges the effects of external influences on
portfolio performance.

While the Board obviously cannot influence market movements, the performance of
the Manager is carefully monitored by the Board and the continuation of the
Manager's mandate is reviewed each year. The Board has established guidelines
to ensure that the investment policy that has been approved is pursued by the
Manager. The Board and the Manager maintain an active dialogue with the aim of
ensuring that the market rating of the Company's shares reflects the underlying
NAV and that buy back and issuance facilities help the management of this
process.

The past performance of the Company, and all of the investments in the
portfolio, are not necessarily indicative of future performance.

For a fuller discussion of the economic and market conditions facing the
Company and the current and future performance of the portfolio of the Company,
see both the Chairman's Statement and Manager's Investment Report in the Annual
Financial Report.

The Ordinary Shares

The market value of, and the income derived from, the Company's ordinary shares
can fluctuate and may go down as well as up. The market value may not always
reflect the NAV per ordinary share. The market price of an ordinary share may
therefore trade at a discount to its NAV which is published daily. As at 31
December 2009, the ordinary shares of the Company traded at a premium of 0.8%.

The market value of the ordinary shares will be affected by a number of
factors, including their dividend yield from time to time, prevailing interest
rates and supply and demand for those shares, along with wider economic factors
and changes in law, including tax law, and political factors. The market value
of an ordinary share may therefore vary considerably from its underlying NAV.
There can be no guarantee that any appreciation in the value of the Company's
investments will occur and investors may not get back the full value of their
investment.

Although the ordinary shares are listed on the Official List and admitted to
trading on the London Stock Exchange's main market for listed securities, it is
possible that there may not be a liquid market in the ordinary shares and
shareholders may have difficulty in selling them.

Gearing

Performance may be geared by means of a bank credit facility. There is no
guarantee that the Company's credit facility would be renewable at maturity on
terms acceptable to the Company. If it were not possible to renew this facility
or replace it with another, the amounts owing by the Company would need to be
funded by the sale of investments.

Gearing levels may change from time to time in accordance with the Manager's
assessment of risk and reward. As a consequence, any reduction in the value of
the Company's investments may lead to a correspondingly greater percentage
reduction in its net asset value (which is likely to affect the Company's share
price adversely). Any reduction in the number of shares in issue (for example,
as a result of buy backs) will, in the absence of a corresponding reduction in
borrowings, result in an increase in the Company's gearing.

High-Yield Fixed-Interest Securities

High-yield fixed-interest securities are subject to credit, liquidity, duration
and interest rate risks. Adverse changes in the financial position of an issuer
or in general economic conditions may impair the ability of the issuer to make
payments of principal and interest or may cause the liquidation or insolvency
of an issuer.

The majority of the Company's portfolio currently consists of
non-investment-grade securities. To the extent that the Company invests in
non-investment-grade securities, the Company may realise a higher current yield
than the yield offered by investment-grade securities. On the other hand,
investments in such securities involve a greater volatility of price and a
greater risk of default by the issuers of such securities, with consequent loss
of interest payment and principal. Non-investment-grade securities are likely
to have greater uncertainties of risk exposure to adverse conditions and will
be speculative with respect to an issuer's capacity to meet interest payments
and repay principal in accordance with its obligations. A lack of liquidity in
non-investment-grade securities may make it difficult for the Company to sell
those securities at or near their purported value.

Derivatives

The Company may enter into derivative transactions for efficient portfolio
management. Derivative instruments can be highly volatile and expose investors
to a high risk of loss. There is a risk that the return on a derivative does
not exactly correlate to the returns on the underlying investment, obligation
or market sector being hedged against. If there is an imperfect correlation,
the Company may be exposed to greater loss than if the derivative had not been
entered into.

Regulatory and Tax Related

The Company is subject to various laws and regulations by virtue of its status
as a company registered under the Companies Act 2006 as an investment company
and its listing on the London Stock Exchange. A serious breach of regulatory
rules may lead to suspension from the London Stock Exchange, a fine or a
qualified Audit Report. Other control failures, either by the Manager or any
other of the Company's service providers, may result in operational or
reputational problems, erroneous disclosures or loss of assets through fraud as
well as breaches of regulations.

The Manager reviews the level of compliance with s842 ICTA and other financial
regulatory requirements on a regular basis. All transactions, income and
expenditure are reported to the Board. The Board regularly considers all
perceived risks and the measures in place to control them. The Board ensures
that satisfactory assurances are received from service providers. The Manager's
Compliance and Internal Audit Officers produce regular reports for review by
the Company's Audit Committee. A breach of s842 ICTA could lead to the Company
being subject to capital gains tax on the sale of its investments.

Further details of the risk management policies and procedures as they relate
to the financial assets and liabilities of the Company are detailed in the
Annual Financial Report.

Related-party Transactions

Invesco Asset Management Limited, a wholly-owned subsidiary of Invesco Ltd,
acts as Manager and Company Secretary to the Company. Details of Invesco Asset
Management Limited's services and fees are given in notes 3 and 4 to the
financial statements in the Annual Financial Report. Full details of Directors'
interests are set out in the Report of the Directors in the Annual Financial
Report.

Statement of Directors' Responsibilities

in respect of the preparation of financial statements

The Directors are responsible for preparing the annual financial report in
accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each
financial year. Under that law the Directors have elected to prepare financial
statements in accordance with applicable law and United Kingdom Accounting
Standards (United Kingdom Generally Accepted Accounting Practice). Under
company law, the Directors must not approve the accounts unless they are
satisfied that they give a true and fair view of the state of affairs of the
Company and on the profit or loss of the Company for that period.

In preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject
to any material departures disclosed and explained in the financial statements;
and

• prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records which are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and which
enable them to ensure that the accounts comply with company law. They are also
responsible for safeguarding the assets of the Company and hence for taking
reasonable steps for the prevention and detection of fraud and other
irregularities.

Under applicable law and regulations, the Directors are also responsible for
preparing a Directors' Report (including a Business Review), a Directors'
Remuneration Report and a Corporate Governance Statement that comply with that
law and those regulations.

Each of the Directors of the Company, whose names are shown in the Annual
Financial Report, confirms that to the best of his/her knowledge:

• the accounts, which have been prepared in accordance with applicable
accounting standards, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company; and

• this annual financial report includes a fair review of the development and
performance of the business and the position of the Company, together with a
description of the principal tasks and uncertainties that it faces.

Clive Nicholson

Chairman

Signed on behalf of the Board of Directors

22 April 2010

Income Statement

for the year ended 31 December

2009 2008

Revenue Capital Total Revenue Capital Total

£'000 £'000 £'000 £'000 £'000 £'000

Gains/(losses) on - 32,293 32,293 - (35,092) (35,092)
investments

Foreign exchange profits - 2,260 2,260 - (6,257) (6,257)
/(losses)

Revenue 7,566 - 7,566 9,143 - 9,143

Investment management (371) (200) (571) (400) (215) (615)
fee

VAT recoverable on 16 9 25 132 71 203
management fees

Liquidation distribution - 469 469 - 314 314

Other expenses (441) (285) (726) (408) (1) (409)

Net return before 6,770 34,546 41,316 8,467 (41,180) (32,713)
finance costs and
taxation

Finance costs (225) (121) (346) (593) (320) (913)

Return on ordinary 6,545 34,425 40,970 7,874 (41,500) (33,626)
activities before
taxation

Tax on ordinary 2,421 - 2,421 (7) - (7)
activities

Return on ordinary 8,966 34,425 43,391 7,867 (41,500) (33,633)
activities after tax
for the financial year

Return per ordinary 14.5p 55.5p 70.0p 14.3p (75.6)p (61.3)p
share - basic

The total column represents the Company's profit and loss account. The
supplementary revenue and capital columns are presented for information
purposes as recommended by the guidance note issued by the Association of
Investment Companies. All items in the above statement derive from continuing
operations and the Company has no other gains or losses; therefore, no
statement of recognised gains or losses is presented. No operations were
acquired or discontinued in the year.

Reconciliation of Movements in Shareholders' Funds

for the year ended 31 December

Capital

Share Share Special Redemption Capital Revenue

Capital Premium Reserve Reserve Reserve Reserve Total

£'000 £'000 £'000 £'000 £'000 £'000 £'000

Balance at 31 December 1,062 112,604 11,644 8,410 (47,673) 4,221 90,268
2007

Return for the year from - - - - (41,500) 7,867 (33,633)
the income statement

Dividends paid in the - - - - - (6,548) (6,548)
year

Issue of new shares 113 7,059 - - - - 7,172

Balance at 31 December 1,175 119,663 11,644 8,410 (89,173) 5,540 57,259
2008

Return for the year from - - - - 34,425 8,966 43,391
the income statement

Dividends paid in the - - - - - (7,209) (7,209)
year

Issue of new shares 281 20,348 - - - - 20,629

Balance at 31 December 1,456 140,011 11,644 8,410 (54,748) 7,297 114,070
2009

Balance Sheet

as at 31 December

2009 2008

£'000 £'000

Fixed assets

Investments at fair value through profit or loss 114,652 63,192

Current assets

Debtors 7,988 5,797

Cash at bank 2,859 7,778

10,847 13,575

Creditors: amounts falling due within one year (11,429) (19,508)

Net current liabilities (582) (5,933)

Total assets less current liabilities 114,070 57,259

Capital and reserves

Share capital 1,456 1,175

Share premium 140,011 119,663

Special reserve 11,644 11,644

Capital redemption reserve 8,410 8,410

Capital reserve (54,748) (89,173)

Revenue reserve 7,297 5,540

Total equity Shareholders' funds 114,070 57,259

Net asset value per ordinary share 156.69p 97.45p

Cash Flow Statement

for the year ended 31 December

2009 2008

£'000 £'000

Net cash inflow from operating activities 5,360 7,603

Servicing of finance (437) (845)

Taxation - (1)

Net outflow from financial investment (12,673) (45)

Equity dividends paid (7,209) (6,548)

Cash (outflow)/inflow before financing (14,959) 164

Financing 10,040 6,085

(Decrease)/increase in cash (4,919) 6,249

Reconciliation of net cash flow to movement in
net debt

£'000 £'000

(Decrease)/increase in cash (4,919) 6,249

Cash outflow from decrease in debt 3,925 1,087

Change in debt resulting from cash flows (994) 7,336

Translation difference - exchange profits/ 1,886 (4,006)
(losses)

Movement in net debt in the year 892 3,330

Net debt at beginning of the year (9,141) (12,471)

Net debt at end of the year (8,249) (9,141)

Notes to the Financial Statements

1. Principal Accounting Policies

The principal accounting policies adopted in the preparation of these financial
statements are set out below. These policies have been consistently applied
during the year and the preceding year, unless otherwise stated.

(a) Basis of Preparation

Accounting Standards applied

The financial statements have been prepared in accordance with applicable law
and United Kingdom Accounting Standards (United Kingdom Generally Accepted
Accounting Practice) and with the Statement of Recommended Practice (`SORP')
`Financial Statements of Investment Trust Companies and Venture Capital
Trusts', issued by the Association of Investment Companies in 2009. The
financial statements are prepared on a going concern basis. The disclosures on
going concern in the Report of the Directors in the Annual Financial Report
form part of the financial statements.

2. Income

2009 2008

£'000 £'000

Income from listed investments

UK dividends 851 1,247

UK unfranked investment income - interest 1,644 965

Overseas interest 4,920 6,602

Overseas dividends 35 96

Scrip dividends 83 146

7,533 9,056

Other income

Interest on VAT recovered on management fees (note 3) 14 -

Deposit interest 19 87

33 87

Total income 7,566 9,143

Total income comprises:

Dividends 969 1,489

Interest 6,597 7,654

7,566 9,143

3. Management Fee

(a) Investment management fee

2009 2008

Revenue Capital Total Revenue Capital Total

£'000 £'000 £'000 £'000 £'000 £'000

Investment management 371 200 571 400 215 615
fee

Details of the management agreement are disclosed in the Report of the
Directors in the Annual Financial Report. At 31 December 2009 £199,000 (2008: £
101,000) was due for payment in respect of investment management fees.

(b) VAT recoverable on management fees

The Company recovered further VAT paid on management fees for the period 2004
to 2007 amounting to £25,000. This has been credited £16,000 to revenue and £
9,000 to capital, in the same proportions as originally charged to the income
and capital accounts.

In addition, £14,000 interest has been received on the total VAT amounts
recovered on management fees.

(c) Liquidation distribution

The Company recovered VAT paid on management fees by the old CMHYT to the date
of the merger amounting to £469,000 and this has been credited wholly to
capital in the income statement.

4. Return per Ordinary Share

Total return per ordinary share is based on the total return on ordinary
activities after tax. Revenue return per ordinary share is based on the revenue
return on ordinary activities after tax. Capital return per ordinary share is
based on the capital return on ordinary activities after tax.

All three returns are based on 62,018,845 (2008: 54,844,364) ordinary shares,
being the weighted average number of ordinary shares in issue during the year.

5. Dividends on Ordinary Shares

2009 2008

Pence £'000 Pence £'000

Dividends paid and recognised in the
year:

Interim paid in respect of previous 3 1,779 3 1,593
period

First interim paid 3 1,779 3 1,631

Second interim paid 3 1,823 3 1,639

Third interim paid 3 1,828 3 1,685

12 7,209 12 6,548

Set out below are the dividends that
have been declared

in respect of the financial year ended
31 December:

First interim paid 3 1,779 3 1,631

Second interim paid 3 1,823 3 1,639

Third interim paid 3 1,828 3 1,685

Fourth interim, paid on 26 February 1 609 3 1,763
2010

Fifth interim, paid on 26 February 2010 2 1,456 - -

Sixth interim, payable on 28 May 2010 1 728 - -

13 8,223 12 6,718

Dividends declared but not paid at the balance sheet date are not included as a
liability in that year's financial statements.

6. Share Capital

2009 2008

£'000 £'000

Authorised

5,174,116,742 ordinary shares of 2p (2008: 5,174,116,742) 103,482 103,482

2009 2008

£'000 £'000

Allotted and fully paid

72,799,105 ordinary shares of 2p (2008: 58,759,286) 1,456 1,175

On 2 November 2009, in connection with the scheme of reconstruction of Invesco
Perpetual European Absolute Return Trust plc and the simultaneous placing and
offer for subscription, the Company issued 11,889,819 new ordinary 2p shares at
a price of 152.3p per share, being 102% of the NAV per share at the close of
business on 28 October 2009. Of the gross proceeds of £18.1 million, £10.5
million was raised in the placing and offer for subscription. Further details
are shown in the Annual Financial Report.

During the year the Company issued 2,150,000 ordinary shares of 2p per share at
an average price of 117.2p per share.

7. Net Asset Value per Ordinary Share

The net asset value per ordinary share at 31 December 2009 is based on net
assets of £114,070,000 (2008: £57,259,000) and on 72,799,105 (2008: 58,759,286)
shares being the number of ordinary shares in issue at the year-end.

8. This Annual Financial Report announcement is not the Company's statutory
accounts. The statutory accounts for the year ended 31 December 2008 have been
delivered to the Registrar of Companies. The statutory accounts for the year
ended 31 December 2008 received an audit report which was unqualified, did not
include a reference to any matters to which the auditors drew attention by way
of emphasis without qualifying the report, and did not include a statement
under either section 498(2) or 498(3) of the Companies Act 2006. The statutory
accounts for the financial year ended 31 December 2009 have been approved and
audited but have not been filed.

9. The Audited Annual Financial Report will be posted to shareholders shortly.
Copies may be obtained during normal business hours from the Company's
registered office, 30 Finsbury Square, London, EC2A 1AG. A copy of the Annual
Financial Report will be available from Invesco Perpetual on the following
website: www.invescoperpetual.co.uk/investmenttrusts

The Annual General Meeting of the Company will be held at 2.30pm on 2 June 2010
at 30 Finsbury Square, London, EC2A 1AG.

By order of the Board

Invesco Asset Management Limited - Company Secretary

22 April 2010

END