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TAX NEWS - DECEMber 2009

SEC Announces $418 Million Fair Fund Distribution to Harmed Investors in Invesco Mutual Funds

Washington, D.C., Dec. 14, 2009 — The Securities and Exchange Commission today announced the Fair Fund distribution of approximately $418 million to more than one million investors who were affected by undisclosed market timing in certain Invesco mutual funds advised by Invesco Funds Group, Inc. (IFG).

The Fair Fund distribution stems from a prior SEC enforcement action against IFG. This distribution also includes money from two other Fair Funds related to separate unlawful marketing timing enforcement actions that affected Invesco investors.

Specifically, the IFG Fair Fund includes $325 million in disgorgement and penalties collected from IFG after the Commission brought settled administrative and cease-and-desist proceedings against IFG in 2004, as well as accrued interest of approximately $39 million. This distribution also includes approximately $45.8 million in disgorgement, penalties and accumulated interest from the Banc of America Capital Management, LLC, BACAP Distributors LLC, and Banc of America Securities, LLC Fair Fund; and approximately $8.7 million in disgorgement, penalties and accumulated interest from the Bear, Stearns & Co., Inc. and Bear, Stearns Securities Corp. Fair Fund.

The Sarbanes-Oxley Act of 2002 (SOX) gave the SEC authority to increase the amount of money returned to injured investors by allowing civil penalties to be included in Fair Fund distributions. Prior to SOX, only disgorgement could be returned to investors. The SEC has returned approximately $7 billion in Fair Funds to investors since gaining this authority after the passage of SOX.

The Fair Fund Administrator responsible for distribution is Boston Financial Data Services, Inc. (BFDS). Investor questions regarding the distribution may be directed to BFDS at (866) 700-0255. Information regarding the distribution also can be obtained at
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