Aim Equity Funds NCSR Certified annual shareholder report (management investment company)

Aim Equity Funds N-CSRCertified annual shareholder report (management investment company)

OMB APPROVAL

OMB Number: 3235-0570

Expires: August 31, 2020

Estimated average burden

hours per response: 20.6

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES


Investment Company Act file number		811-01424

AIM Equity Funds (Invesco Equity Funds)
(Exact name of registrant as specified in charter)

11 Greenway Plaza, Suite 1000 Houston, Texas 77046
(Address of principal executive offices) (Zip code)

Sheri Morris 11 Greenway Plaza, Suite 1000 Houston, Texas 77046
(Name and address of agent for service)

Registrant’s telephone number, including area code: (713) 626-1919

Date of fiscal year end: 10/31

Date of reporting period: 10/31/17

Item 1. Report to Stockholders.

LOGO

Letters to Shareholders

LOGO

Philip Taylor

Dear Shareholders:

This annual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Inside is a discussion of how your Fund was managed and the factors that affected its performance during the reporting period.

American voters went to the polls just days after the start of the reporting period, and their decisions quickly affected markets. The US stock market rallied strongly after the election, with major market indexes rising, and setting record highs, throughout the reporting period. Generally positive economic data, strong corporate earnings and hope for tax and regulatory reform contributed to the rally. US and global bond markets, as well as emerging market equities, sold off immediately following the election – with the US bond market eventually recovering most of its losses. Overseas, economic data were mixed, prompting the European Central Bank and central

banks in China and Japan, among other countries, to maintain extraordinarily accommodative monetary policies. Citing positive economic trends – specifically, realized and expected labor market conditions and inflation – the US Federal Reserve raised interest rates three times during the reporting period: first in December 2016, and then again in March and June 2017. Health care and tax reform proved to be more difficult than expected to enact, with little progress achieved by the end of the reporting period.

Short-term market volatility can prompt some investors to abandon their investment plans – and can cause others to settle for whatever returns the market has to offer. The investment professionals at Invesco, in contrast, invest with high conviction. This means that, no matter the asset class or the strategy, each investment team has a passion to exceed. We want to help investors achieve better outcomes, such as seeking higher returns, helping mitigate risk and generating income. Of course, investing with high conviction can’t guarantee a profit or ensure success; no investment strategy can. To learn more about how we invest with high conviction, visit invesco.com/HighConviction.

You, too, can invest with high conviction by maintaining a long-term investment perspective and by working with your financial adviser on a regular basis. During periods of short-term market volatility or uncertainty, your financial adviser can keep you focused on your long-term investment goals – a new home, a child’s college education or a secure retirement. He or she also can share research about the economy, the markets and individual investment options.

Visit our website for more information on your investments

Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.”

In addition to the resources accessible on our website and through our mobile app, you can obtain timely updates to help you stay informed about the markets and the economy by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com. Our goal is to provide you the information you want, when and where you want it.

Finally, I’m pleased to share with you Invesco’s commitment to both the Principles for Responsible Investment and to considering environmental, social and governance issues in our robust investment process. I invite you to learn more at invesco.com/esg.

Have questions?

For questions about your account, contact an Invesco client services representative at 800 959 4246. For Invesco-related questions or comments, please email me directly at phil@invesco.com.

All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.

Sincerely,

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

2 Invesco Charter Fund

∎

Assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus.

∎

Monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.

We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper, Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.

I trust the measures outlined above provide assurance that you have a worthy advocate when it comes to choosing the Invesco Funds.

As always, please contact me at bruce@brucecrockett.com with any questions or concerns you may have. On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.

Sincerely,

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

3 Invesco Charter Fund

Management’s Discussion of Fund Performance

Performance summary

For the fiscal year ended October 31, 2017, Class A shares of Invesco Charter Fund (the Fund), at net asset value (NAV), underperformed the Russell 1000 Index, the Fund’s style-specific benchmark.

Your Fund’s long-term performance appears later in this report.

Fund vs. Indexes

Total returns, 10/31/16 to 10/31/17, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.


Class A Shares	13.83	%
Class B Shares	12.96
Class C Shares	12.98
Class R Shares	13.53
Class S Shares	13.94
Class Y Shares	14.13
Class R5 Shares	14.19
Class R6 Shares	14.27
S&P 500 Index^▼(Broad Market Index)	23.63
Russell 1000 Index^▼(Style-Specific Index)	23.67
Lipper Large Cap Core Funds Index^∎(Peer Group Index)	22.74
Source(s): ^▼FactSet Research Systems Inc.; ^∎Lipper Inc.

Market conditions and your Fund

Despite highly destructive hurricanes that threatened to derail a years-long recovery, the US economy continued to expand throughout the fiscal year ended October 31, 2017. Gross domestic product (GDP) – the value of all goods and services produced in the US – grew by 1.8% in the fourth quarter of 2016, by 1.2% in the first quarter and by 3.1% in the second quarter of 2017.¹ Inflation remained subdued even as the labor market continued to strengthen. Unemployment continued its multi-year decline, hitting just 4.2% in September – a 16-year low.²

Given signs of an improving economy, the US Federal Reserve (the Fed) raised interest rates three times during the reporting period, most recently in June 2017.³ The Fed pledged that “realized and expected economic conditions

relative to its objectives of maximum employment and 2 percent inflation” will guide its future actions. At the close of the reporting period, Fed policy remained accommodative, and the fed funds target rate stood at a range of 1.00% to 1.25% – up 75 basis points for the reporting period.³ (A basis point is 0.01%.)

Despite the Fed’s actions, major US stock market indexes repeatedly hit all-time highs throughout the reporting period. The stock market rally began immediately following the outcome of the US presidential election in November 2016, based on investors’ hopes for reduced regulation, lowered corporate and personal tax rates and increased infrastructure spending. The stock market rally continued throughout the reporting period, fueled by generally positive economic data, strong corporate earnings and improved consumer

confidence – even as the prospect for health care and tax reform faded somewhat.

During the fiscal year, stock selection in the consumer staples sector was the largest contributor to the Fund’s performance relative to its style-specific benchmark, as was underweight exposure to the sector. Stock selection in the telecommunication services sector also added to the Fund’s performance. The largest detractors from the Fund’s performance included the Fund’s cash position, as well as stock selection in the health care, information technology (IT) and energy sectors.

The largest individual contributor to the Fund’s performance was Progressive. During the fiscal year, the company reported better-than-expected earnings and total revenue gains across its personal lines segment. American Express also benefited from strong revenue and earnings growth. In addition, Cognizant Technology Solutions advanced due to consistently upbeat revenue growth across its primary business units, as well as stronger performance overseas during the fiscal year.

The largest individual detractor from the Fund’s performance was Range Resources, a natural gas company, which saw its stock price weaken due to declining gas prices. We sold our position in Range Resources during the reporting period. Shares of semiconductor company Qualcomm suffered after it was sued by Apple (not a Fund holding), one of its biggest customers, for unfair business practices. Also detracting from the Fund’s performance for the reporting period was Allergan, which fell amid criticism following a controversial patent agreement.

Finally, the Fund’s conservative positioning and allocation to cash hampered


Portfolio Composition
By sector				% of total net assets



Information Technology	20.1	%
Consumer Discretionary	18.7
Financials	16.4
Health Care	14.0
Industrials	9.3
Energy	4.4
Consumer Staples	1.7
Materials	1.3
Utilities	1.2
Telecommunication Services	1.0
Real Estate	0.8
Money Market Funds Plus Other Assets Less Liabilities	11.1


Top 10 Equity Holdings*
% of total net assets



1. Alphabet Inc.-Class C	3.2	%
2. Cognizant Technology Solutions Corp.-Class A	3.1
3. AIA Group Ltd.	2.9
4. Oracle Corp.	2.8
5. Stanley Black & Decker Inc.	2.5
6. Comcast Corp.-Class A	2.5
7. American Express Co.	2.5
8. Delphi Automotive PLC	2.5
9. Taiwan Semiconductor Manufacturing Co. Ltd.	2.4
10. Thermo Fisher Scientific, Inc.	2.1


Total Net Assets	$	3.8 billion

Total Number of Holdings*		54

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.

*Excluding money market fund holdings.

Data presented here are as of October 31, 2017.

4 Invesco Charter Fund

its performance during the fiscal year. We have been active in deploying cash during periods of market volatility but continue to be selective due to valuations.

During the reporting period, the Fund’s largest overweight position relative to its style-specific benchmark was in the consumer discretionary sector. The Fund also had slight overweight position in the financials sector. Our underweight positions were in the consumer staples, energy, health care, industrials, information technology, materials, real estate, telecommunication services and utilities sectors.

Following our mandate as a conservative cornerstone for our clients’ portfolios, we continue to focus on high quality companies with attractive valuations and strong future growth prospects.

We thank you for your continued investment in Invesco Charter Fund.

1	Source: Bureau of Economic Analysis

2	Sources: Bureau of Labor Statistics, Bloomberg

3	Source: US Federal Reserve

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.


		Ronald Sloan Chartered Financial Analyst, Portfolio Manager and Co-Chief Investment Officer of
Invesco’s Global Core Equity Team, is lead manager of Invesco Charter Fund. He joined Invesco in 1998. Mr. Sloan earned a BS in business administration and an MBA from the University of Missouri.

		Brian Nelson Chartered Financial Analyst, Portfolio Manager, is manager of Invesco Charter Fund. He
joined Invesco in 2004. Mr. Nelson earned a BA from the University of California, Santa Barbara.

5 Invesco Charter Fund

Your Fund’s Long-Term Performance

Results of a $10,000 Investment – Oldest Share Class(es)

Fund and index data from 10/31/07

LOGO

Past performance cannot guarantee comparable future results

The data shown in the chart include re-invested distributions, applicable sales charges and Fund expenses including

management fees. Index results include reinvested dividends, but they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses and management fees; performance

of a market index does not. Performance shown in the chart and table(s) does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

6 Invesco Charter Fund


Average Annual Total Returns
As of 10/31/17, including maximum applicable sales charges



Class A Shares
Inception (11/26/68)	10.49	%
10 Years	4.98
5 Years	8.72
1 Year	7.54

Class B Shares
Inception (6/26/95)	7.13	%
10 Years	4.95
5 Years	8.83
1 Year	7.96

Class C Shares
Inception (8/4/97)	4.70	%
10 Years	4.79
5 Years	9.12
1 Year	11.98

Class R Shares
Inception (6/3/02)	6.62	%
10 Years	5.31
5 Years	9.66
1 Year	13.53

Class S Shares
10 Years	5.66	%
5 Years	10.06
1 Year	13.94

Class Y Shares
10 Years	5.82	%
5 Years	10.22
1 Year	14.13

Class R5 Shares
Inception (7/30/91)	8.26	%
10 Years	5.98
5 Years	10.31
1 Year	14.19

Class R6 Shares
10 Years	5.80	%
5 Years	10.41
1 Year	14.27

Class S shares incepted on September 25, 2009. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.

Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.

Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.

The performance data quoted represent


Average Annual Total Returns
As of 9/30/17, the most recent calendar quarter end, including maximum applicable sales charges



Class A Shares
Inception (11/26/68)	10.52	%
10 Years	5.23
5 Years	8.60
1 Year	5.66

Class B Shares
Inception (6/26/95)	7.19	%
10 Years	5.20
5 Years	8.71
1 Year	5.90

Class C Shares
Inception (8/4/97)	4.75	%
10 Years	5.04
5 Years	9.02
1 Year	9.99

Class R Shares
Inception (6/3/02)	6.70	%
10 Years	5.56
5 Years	9.57
1 Year	11.49

Class S Shares
10 Years	5.91	%
5 Years	9.94
1 Year	11.86

Class Y Shares
10 Years	6.06	%
5 Years	10.12
1 Year	12.05

Class R5 Shares
Inception (7/30/91)	8.31	%
10 Years	6.23
5 Years	10.20
1 Year	12.18

Class R6 Shares
10 Years	6.05	%
5 Years	10.30
1 Year	12.26

past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this

report for Class A, Class B, Class C, Class R, Class S, Class Y, Class R5 and Class R6 shares was 1.12%, 1.87%, 1.87%, 1.37%, 1.02%, 0.87%, 0.76% and 0.69%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R, Class S, Class Y, Class R5 and Class R6 shares was 1.13%, 1.88%, 1.88%, 1.38%, 1.03%, 0.88%, 0.77% and 0.70%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class S, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

1	Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2019. See current prospectus for more information.

7 Invesco Charter Fund

Invesco Charter Fund’s investment objective is long-term growth of capital.

∎

Unless otherwise stated, information presented in this report is as of October 31, 2017, and is based on total net assets.

∎

Unless otherwise noted, all data provided by Invesco.

∎

To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

About share classes

∎

Class B shares may not be purchased for new or additional investments. Please see the prospectus for more information.

∎

Class R shares are generally available only to employee benefit plans. Please see the prospectus for more information.

∎

Class S shares and Class Y shares are available only to certain investors. Please see the prospectus for more information.

∎

Class R5 shares and Class R6 shares are available for use by retirement plans that meet certain standards and for institutional investors. Class R6 shares are also available through intermediaries that have established an agreement with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts. Please see the prospectus for more information.

Principal risks of investing in the Fund

∎

Cash/cash equivalents risk. In rising markets, holding cash or cash equivalents will negatively affect the Fund’s performance relative to its benchmark.

∎

Debt Securities Risk. The prices of debt securities held by the Fund will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s distributable income because interest payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities if the issuer or borrower fails to meet its obligations to make interest payments

and/or to repay principal in a timely manner. Changes in an issuer’s financial strength, the market’s perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. The Adviser’s credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event.

∎

Derivatives risk. The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the economic exposure created by owning the derivative. As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative, which may make the Fund’s returns more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives or their

cost. Also, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions.

∎

Foreign securities risk. The Fund’s foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Unless the Fund has hedged its foreign securities risk, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful.

∎

Management risk. The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment objective.

∎

Market risk. The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. Individual stock prices tend to go up and down more dramatically than those of certain other types of investments, such as bonds. During a general downturn in the financial

This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

8 Invesco Charter Fund

markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value.

∎

Small- and mid-capitalization companies risks. Small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of more established companies, and their returns may vary, sometimes significantly, from the overall securities market.

About indexes used in this report

∎

The S&P 500^® Index is an unmanaged index considered representative of the US stock market.

∎

The Russell 1000^® Index is an unmanaged index considered representative of large-cap stocks. The Russell 1000 Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

∎

The Lipper Large Cap Core Funds Index is an unmanaged index considered representative of large-cap core funds tracked by Lipper.

∎

The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

∎

A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Other information

∎

The returns shown in management’s discussion of Fund performance are based on net asset values (NAVs) calculated for shareholder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the NAVs for shareholder transactions and the returns based on those NAVs may differ from the NAVs and returns reported in the Financial Highlights.

∎

Industry classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

9 Invesco Charter Fund

Schedule of Investments^(a)

October 31, 2017


	Shares		Value
Common Stocks & Other Equity Interests–88.85%
Advertising–1.21%
Publicis Groupe S.A. (France)		701,687	$	45,741,435

Aerospace & Defense–3.01%
General Dynamics Corp.		281,346		57,107,611
United Technologies Corp.		471,752		56,497,020
				113,604,631

Air Freight & Logistics–1.14%
United Parcel Service, Inc.–Class B		365,678		42,978,135

Apparel, Accessories & Luxury Goods–2.79%
Hanesbrands, Inc.		1,625,888		36,582,480
LVMH Moet Hennessy Louis Vuitton S.E. (France)		229,261		68,395,638
				104,978,118

Asset Management & Custody Banks–1.10%
Northern Trust Corp.		441,366		41,276,548

Auto Parts & Equipment–2.50%
Delphi Automotive PLC		949,140		94,325,533

Biotechnology–6.01%
Biogen Inc.^(b)		231,829		72,251,826
BioMarin Pharmaceutical Inc.^(b)		285,324		23,422,247
Celgene Corp.^(b)		755,377		76,270,416
Shire PLC–ADR		370,209		54,653,955
				226,598,444

Cable & Satellite–2.51%
Comcast Corp.–Class A		2,626,674		94,639,064

Casinos & Gaming–1.17%
Wynn Resorts Ltd.		297,930		43,941,696

Consumer Finance–2.51%
American Express Co.		988,927		94,462,307

Data Processing & Outsourced Services–1.28%
Mastercard Inc.–Class A		323,060		48,061,636

Distillers & Vintners–1.76%
Diageo PLC (United Kingdom)		1,936,229		66,154,067

Diversified Banks–2.93%
Svenska Handelsbanken AB–Class A (Sweden)		3,435,774		49,178,413
U.S. Bancorp		1,126,268		61,246,454
				110,424,867

Electric Utilities–1.19%
Duke Energy Corp.		508,588		44,913,406

Electronic Manufacturing Services–1.61%
TE Connectivity Ltd.		666,737		60,653,065


	Shares		Value
Footwear–1.29%
NIKE, Inc.–Class B		887,252	$	48,789,987

General Merchandise Stores–1.18%
Dollar General Corp.		551,257		44,563,616

Health Care Facilities–1.53%
HCA Healthcare, Inc.^(b)		762,761		57,702,870

Health Care Supplies–1.36%
Dentsply Sirona Inc.		837,538		51,148,446

Home Improvement Retail–1.86%
Home Depot, Inc. (The)		423,729		70,245,794

Household Appliances–1.00%
Whirlpool Corp.		230,475		37,781,767

Housewares & Specialties–1.60%
Newell Brands, Inc.		1,474,143		60,115,552

Industrial Conglomerates–1.40%
Siemens AG (Germany)		369,162		52,679,510

Industrial Gases–1.32%
Air Liquide S.A. (France)		390,392		49,706,103

Industrial Machinery–3.72%
Illinois Tool Works Inc.		291,791		45,671,127
Stanley Black & Decker Inc.		586,302		94,717,088
				140,388,215

Insurance Brokers–1.73%
Marsh & McLennan Cos., Inc.		807,374		65,340,778

Integrated Oil & Gas–1.62%
Suncor Energy, Inc. (Canada)		1,801,230		61,169,771

Internet & Direct Marketing Retail–1.55%
Priceline Group Inc. (The)^(b)		30,626		58,555,687

Internet Software & Services–4.91%
Alphabet Inc.–Class C^(b)		119,035		121,015,742
eBay Inc.^(b)		1,702,829		64,094,484
				185,110,226

IT Consulting & Other Services–3.08%
Cognizant Technology Solutions Corp.– Class A		1,533,104		116,009,980

Life & Health Insurance–2.87%
AIA Group Ltd. (Hong Kong)		14,373,200		108,148,132

Life Sciences Tools & Services–2.06%
Thermo Fisher Scientific, Inc.		399,635		77,461,252

Multi-Sector Holdings–2.02%
Berkshire Hathaway Inc.–Class A^(b)		272		76,287,840

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

10 Invesco Charter Fund


	Shares		Value
Oil & Gas Equipment & Services–1.25%
Halliburton Co.		1,101,780	$	47,090,077

Oil & Gas Exploration & Production–1.51%
Concho Resources Inc.^(b)		424,341		56,950,806

Pharmaceuticals–3.01%
Allergan PLC		360,529		63,896,555
Merck & Co., Inc.		901,659		49,672,394
				113,568,949

Property & Casualty Insurance–1.85%
Progressive Corp. (The)		1,431,658		69,650,162

Regional Banks–1.38%
First Republic Bank		533,714		51,983,744

Retail REIT’s–0.80%
GGP Inc.		1,555,929		30,278,378

Semiconductors–4.72%
Analog Devices, Inc.		474,834		43,352,344
QUALCOMM Inc.		848,898		43,302,287
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)		11,294,019		91,213,202
				177,867,833


	Shares		Value
Systems Software–4.55%
Microsoft Corp.		793,721	$	66,021,713
Oracle Corp.		2,073,123		105,521,960
				171,543,673

Wireless Telecommunication Services–0.96%
Vodafone Group PLC–ADR (United Kingdom)		1,248,837		36,191,296
Total Common Stocks & Other Equity Interests (Cost $2,429,731,139)				3,349,083,396

Money Market Funds–10.93%
Invesco Government & Agency Portfolio–Institutional Class, 0.95%^(c)		247,163,734		247,163,734
Invesco Treasury Portfolio–Institutional Class, 0.94%^(c)		164,775,822		164,775,822
Total Money Market Funds (Cost $411,939,556)				411,939,556
TOTAL INVESTMENTS IN SECURITIES–99.78% (Cost $2,841,670,695)				3,761,022,952
OTHER ASSETS LESS LIABILITIES–0.22%				8,241,320
NET ASSETS–100.00%			$	3,769,264,272

Investment Abbreviations:


ADR		– American Depositary Receipt
REIT		– Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)	Non-income producing security.

^(c)	The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of October 31, 2017.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

11 Invesco Charter Fund

Statement of Assets and Liabilities

October 31, 2017


Assets:
Investments in securities, at value (Cost $2,429,731,139)	$	3,349,083,396
Investments in affiliated money market funds, at value and cost		411,939,556
Foreign currencies, at value (Cost $10,385,236)		10,550,734
Receivable for:
Investments sold		528,195
Fund shares sold		509,626
Dividends		2,013,803
Investment for trustee deferred compensation and retirement plans		1,804,254
Other assets		95,541
Total assets		3,776,525,105

Liabilities:
Payable for:
Fund shares reacquired		2,978,943
Accrued fees to affiliates		2,254,018
Accrued trustees’ and officers’ fees and benefits		6,075
Accrued other operating expenses		25,276
Trustee deferred compensation and retirement plans		1,996,521
Total liabilities		7,260,833
Net assets applicable to shares outstanding	$	3,769,264,272

Net assets consist of:
Shares of beneficial interest	$	2,617,454,668
Undistributed net investment income		16,839,398
Undistributed net realized gain		215,474,449
Net unrealized appreciation		919,495,757
	$	3,769,264,272


Net Assets:
Class A	$	3,363,072,923
Class B	$	12,493,822
Class C	$	167,072,678
Class R	$	30,186,705
Class S	$	19,028,400
Class Y	$	129,284,793
Class R5	$	29,835,372
Class R6	$	18,289,579

Shares outstanding, no par value, with an unlimited number of shares authorized:
Class A		179,391,753
Class B		710,822
Class C		9,465,440
Class R		1,626,992
Class S		1,014,250
Class Y		6,862,143
Class R5		1,524,008
Class R6		934,250
Class A:
Net asset value per share	$	18.75
Maximum offering price per share
(Net asset value of $18.75 ¸ 94.50%)	$	19.84
Class B:
Net asset value and offering price per share	$	17.58
Class C:
Net asset value and offering price per share	$	17.65
Class R:
Net asset value and offering price per share	$	18.55
Class S:
Net asset value and offering price per share	$	18.76
Class Y:
Net asset value and offering price per share	$	18.84
Class R5:
Net asset value and offering price per share	$	19.58
Class R6:
Net asset value and offering price per share	$	19.58

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

12 Invesco Charter Fund

Statement of Operations

For the year ended October 31, 2017


Investment income:
Dividends (net of foreign withholding taxes of $1,571,447)	$	59,483,269
Dividends from affiliated money market funds		2,762,951
Total investment income		62,246,220

Expenses:
Advisory fees		24,127,945
Administrative services fees		601,722
Custodian fees		231,053
Distribution fees:
Class A		8,637,424
Class B		200,922
Class C		1,861,891
Class R		168,106
Class S		28,579
Transfer agent fees — A, B, C, R, S and Y		6,869,820
Transfer agent fees — R5		35,174
Transfer agent fees — R6		1,698
Trustees’ and officers’ fees and benefits		95,173
Registration and filing fees		178,092
Reports to shareholders		1,105,426
Professional services fees		67,489
Other		64,776
Total expenses		44,275,290
Less: Fees waived and expense offset arrangement(s)		(576,745	)
Net expenses		43,698,545
Net investment income		18,547,675

Realized and unrealized gain from:
Net realized gain from:
Investment securities (includes net gains (losses) from securities sold to affiliates of $(577,325))		237,243,898
Foreign currencies		241,964
		237,485,862
Change in net unrealized appreciation of:
Investment securities		249,500,636
Foreign currencies		217,432
		249,718,068
Net realized and unrealized gain		487,203,930
Net increase in net assets resulting from operations	$	505,751,605

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

13 Invesco Charter Fund

Statement of Changes in Net Assets

For the years ended October 31, 2017 and 2016


	2017			2016
Operations:
Net investment income	$	18,547,675		$	35,185,443
Net realized gain		237,485,862			380,414,262
Change in net unrealized appreciation (depreciation)		249,718,068			(293,152,839	)
Net increase in net assets resulting from operations		505,751,605			122,446,866

Distributions to shareholders from net investment income:
Class A		(30,633,877	)		(40,042,458	)
Class B		(22,307	)		(101,578	)
Class C		(165,647	)		(516,916	)
Class R		(212,669	)		(336,604	)
Class S		(181,181	)		(222,679	)
Class Y		(1,150,067	)		(2,354,903	)
Class R5		(463,957	)		(1,147,498	)
Class R6		(40,672	)		(1,886,883	)
Total distributions from net investment income		(32,870,377	)		(46,609,519	)

Distributions to shareholders from net realized gains:
Class A		(329,859,254	)		(428,206,831	)
Class B		(2,669,783	)		(5,446,571	)
Class C		(19,825,289	)		(27,716,876	)
Class R		(3,292,840	)		(4,925,504	)
Class S		(1,746,058	)		(2,152,527	)
Class Y		(9,572,906	)		(19,900,365	)
Class R5		(3,507,497	)		(8,997,994	)
Class R6		(290,493	)		(13,770,029	)
Total distributions from net realized gains		(370,764,120	)		(511,116,697	)

Share transactions–net:
Class A		(195,241,082	)		(49,993,523	)
Class B		(15,347,934	)		(15,153,462	)
Class C		(36,929,723	)		(16,283,874	)
Class R		(6,325,944	)		(4,284,253	)
Class S		132,278			822,416
Class Y		21,372,829			(63,518,983	)
Class R5		(9,692,424	)		(64,238,142	)
Class R6		15,232,725			(98,538,831	)
Net increase (decrease) in net assets resulting from share transactions		(226,799,275	)		(311,188,652	)
Net increase (decrease) in net assets		(124,682,167	)		(746,468,002	)

Net assets:
Beginning of year		3,893,946,439			4,640,414,441
End of year (includes undistributed net investment income of $16,839,398 and $30,952,356, respectively)	$	3,769,264,272		$	3,893,946,439

Notes to Financial Statements

October 31, 2017

NOTE 1—Significant Accounting Policies

Invesco Charter Fund (the “Fund”) is a series portfolio of AIM Equity Funds (Invesco Equity Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of three separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

14 Invesco Charter Fund

The Fund’s investment objective is long-term growth of capital.

The Fund currently consists of eight different classes of shares: Class A, Class B, Class C, Class R, Class S, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class S, Class Y, Class R5 and Class R6 shares are sold at net asset value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert to Class A shares. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert to Class A shares. Generally, Class B shares will automatically convert to Class A shares on or about the month-end, which is at least eight years after the date of purchase. Redemption of Class B shares prior to the conversion date will be subject to a CDSC.

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

15 Invesco Charter Fund

Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.	Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.

Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

16 Invesco Charter Fund

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

J.	Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:


Average Daily Net Assets	Rate
First $250 million		0	.695%
Next $4.05 billion		0	.615%
Next $3.9 billion		0	.57%
Next $1.8 billion		0	.545%
Over $10 billion		0	.52%

For the year ended October 31, 2017, the effective advisory fees incurred by the Fund was 0.62%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class B, Class C, Class R, Class S, Class Y, Class R5 and Class R6 shares to 2.00%, 2.75%, 2.75%, 2.25%, 1.90%, 1.75%, 1.75% and 1.75%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the year ended October 31, 2017, the Adviser waived advisory fees of $490,073.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class B, Class C, Class R, Class S, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B, Class C, Class R and Class S shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class B

17 Invesco Charter Fund

and Class C shares, 0.50% of the average daily net assets of Class R shares and 0.15% of the average daily net assets of Class S shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of Class A, Class B, Class C and Class R shares and 0.15% of the average daily net assets of Class S shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2017, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2017, IDI advised the Fund that IDI retained $157,034 in front-end sales commissions from the sale of Class A shares and $7,431, $409 and $4,594 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

For the year ended October 31, 2017, the Fund incurred $2,783 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.

NOTE 3—Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 —

Prices are determined using quoted prices in an active market for identical assets.

Level 2 —

Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 —

Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of October 31, 2017. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the year ended October 31, 2017, there were transfers from Level 1 to Level 2 of $91,213,202 and from Level 2 to Level 1 of $66,154,067, due to foreign fair value adjustments.


	Level 1		Level 2		Level 3		Total
Common Stocks & Other Equity Interests	$	3,208,691,781	$	140,391,615	$	—	$	3,349,083,396
Money Market Funds		411,939,556		—		—		411,939,556
Total Investments	$	3,620,631,337	$	140,391,615	$	—	$	3,761,022,952

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the year ended October 31, 2017, the Fund engaged in securities purchases of $4,643,302 and securities sales of $616,244, which resulted in net realized gains (losses) of $(577,325).

NOTE 5—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2017, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $86,672.

18 Invesco Charter Fund

NOTE 6—Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 7—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 8—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2017 and 2016:


	2017		2016
Ordinary income	$	38,353,715	$	46,609,519
Long-term capital gain		365,280,782		511,116,697
Total distributions	$	403,634,497	$	557,726,216

Tax Components of Net Assets at Period-End:


	2017
Undistributed ordinary income	$	18,694,838
Undistributed long-term gain		227,841,943
Net unrealized appreciation — investments		916,250,212
Net unrealized appreciation — other		143,500
Temporary book/tax differences		(1,855,440	)
Capital loss carryforward		(9,265,449	)
Shares of beneficial interest		2,617,454,668
Total net assets	$	3,769,264,272

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation difference is attributable primarily to wash sales.

The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund has a capital loss carryforward as of October 31, 2017, which expires as follows:


Capital Loss Carryforward*
Expiration	Short-Term		Long-Term		Total
October 31, 2018	$	9,265,449	$	—	$	9,265,449

Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

19 Invesco Charter Fund

NOTE 9—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2017 was $1,044,271,466 and $1,556,008,997, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	1,023,931,972
Aggregate unrealized (depreciation) of investments		(107,681,760	)
Net unrealized appreciation of investments	$	916,250,212

Cost of investments for tax purposes is $2,844,772,740.

NOTE 10—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of distributions, partnerships and foreign currency transactions, on October 31, 2017, undistributed net investment income was increased by $209,744, undistributed net realized gain was decreased by $209,359 and shares of beneficial interest was decreased by $385. This reclassification had no effect on the net assets of the Fund.

20 Invesco Charter Fund

NOTE 11—Share Information


	Summary of Share Activity
	Years ended October 31,
	2017^(a)						2016
	Shares			Amount			Shares			Amount
Sold:
Class A		4,569,205		$	82,741,213			5,334,229		$	94,685,694
Class B		24,867			422,361			27,826			468,455
Class C		436,199			7,444,011			701,037			11,808,469
Class R		303,397			5,418,192			368,052			6,559,975
Class S		36,177			651,636			37,290			673,670
Class Y		6,641,648			119,752,597			3,193,027			58,366,827
Class R5		164,547			3,105,751			568,624			10,445,497
Class R6		946,512			18,478,115			231,849			4,451,467

Issued as reinvestment of dividends:
Class A		20,317,114			352,501,925			25,760,253			434,833,073
Class B		163,588			2,679,564			334,842			5,364,162
Class C		1,186,808			19,511,118			1,631,764			26,222,439
Class R		203,583			3,503,660			314,013			5,259,713
Class S		111,080			1,927,239			139,733			2,357,300
Class Y		580,352			10,098,134			1,057,284			17,889,253
Class R5		219,408			3,964,698			576,673			10,091,783
Class R6		18,273			330,017			895,192			15,656,912

Automatic conversion of Class B shares to Class A shares:
Class A		801,175			14,494,313			849,593			15,165,383
Class B		(851,102	)		(14,494,313	)		(897,893	)		(15,165,383	)

Reacquired:
Class A		(35,709,531	)		(644,978,533	)		(33,114,867	)		(594,677,673	)
Class B		(232,862	)		(3,955,546	)		(342,950	)		(5,820,696	)
Class C		(3,732,740	)		(63,884,852	)		(3,181,030	)		(54,314,782	)
Class R		(846,331	)		(15,247,796	)		(906,761	)		(16,103,941	)
Class S		(135,278	)		(2,446,597	)		(125,808	)		(2,208,554	)
Class Y		(5,915,191	)		(108,477,902	)		(7,665,882	)		(139,775,063	)
Class R5		(890,881	)		(16,762,873	)		(4,388,890	)		(84,775,422	)
Class R6		(185,291	)		(3,575,407	)		(6,959,527	)		(118,647,210	)
Net increase (decrease) in share activity		(11,775,274	)	$	(226,799,275	)		(15,562,327	)	$	(311,188,652	)

^(a)

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 40% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

21 Invesco Charter Fund

NOTE 12—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.


	Net asset value, beginning of period		Net investment income (loss)^(a)			Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends from net investment income			Distributions from net realized gains			Total distributions			Net asset value, end of period		Total return^(b)			Net assets, end of period (000’s omitted)		Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed			Ratio of net investment income (loss) to average net assets			Portfolio turnover^(c)
Class A
Year ended 10/31/17	$	18.31	$	0.09		$	2.29		$	2.38		$	(0.17	)	$	(1.77	)	$	(1.94	)	$	18.75		13.83	%	$	3,363,073		1.10	%^(d)		1.11	%^(d)		0.50	%^(d)		30	%
Year ended 10/31/16		20.30		0.16			0.34			0.50			(0.21	)		(2.28	)		(2.49	)		18.31		3.54			3,467,887		1.11			1.12			0.88			28
Year ended 10/31/15		23.28		0.19			(0.74	)		(0.55	)		(0.13	)		(2.30	)		(2.43	)		20.30		(2.53	)		3,869,488		1.07			1.08			0.89			47
Year ended 10/31/14		22.22		0.12			2.09			2.21			(0.20	)		(0.95	)		(1.15	)		23.28		10.48			4,517,960		1.05			1.07			0.53			23
Year ended 10/31/13		17.73		0.19			4.49			4.68			(0.19	)		—			(0.19	)		22.22		26.63			4,529,846		1.05			1.07			0.94			35
Class B
Year ended 10/31/17		17.26		(0.04	)		2.15			2.11			(0.02	)		(1.77	)		(1.79	)		17.58		12.96			12,494		1.85	^(d)		1.86	^(d)		(0.25	)^(d)		30
Year ended 10/31/16		19.24		0.02			0.32			0.34			(0.04	)		(2.28	)		(2.32	)		17.26		2.74			27,731		1.86			1.87			0.13			28
Year ended 10/31/15		22.21		0.03			(0.70	)		(0.67	)		—			(2.30	)		(2.30	)		19.24		(3.22	)		47,808		1.82			1.83			0.14			47
Year ended 10/31/14		21.25		(0.05	)		2.00			1.95			(0.04	)		(0.95	)		(0.99	)		22.21		9.62			78,125		1.80			1.82			(0.22	)		23
Year ended 10/31/13		16.96		0.04			4.30			4.34			(0.05	)		—			(0.05	)		21.25		25.63			108,696		1.80			1.82			0.19			35
Class C
Year ended 10/31/17		17.32		(0.04	)		2.16			2.12			(0.02	)		(1.77	)		(1.79	)		17.65		12.98			167,073		1.85	^(d)		1.86	^(d)		(0.25	)^(d)		30
Year ended 10/31/16		19.30		0.02			0.32			0.34			(0.04	)		(2.28	)		(2.32	)		17.32		2.73			200,499		1.86			1.87			0.13			28
Year ended 10/31/15		22.27		0.03			(0.70	)		(0.67	)		—			(2.30	)		(2.30	)		19.30		(3.22	)		239,765		1.82			1.83			0.14			47
Year ended 10/31/14		21.30		(0.05	)		2.01			1.96			(0.04	)		(0.95	)		(0.99	)		22.27		9.64			282,091		1.80			1.82			(0.22	)		23
Year ended 10/31/13		17.00		0.04			4.31			4.35			(0.05	)		—			(0.05	)		21.30		25.63			283,655		1.80			1.82			0.19			35
Class R
Year ended 10/31/17		18.13		0.05			2.26			2.31			(0.12	)		(1.77	)		(1.89	)		18.55		13.53			30,187		1.35	^(d)		1.36	^(d)		0.25	^(d)		30
Year ended 10/31/16		20.12		0.11			0.34			0.45			(0.16	)		(2.28	)		(2.44	)		18.13		3.24			35,654		1.36			1.37			0.63			28
Year ended 10/31/15		23.07		0.13			(0.72	)		(0.59	)		(0.06	)		(2.30	)		(2.36	)		20.12		(2.72	)		44,079		1.32			1.33			0.64			47
Year ended 10/31/14		22.03		0.06			2.07			2.13			(0.14	)		(0.95	)		(1.09	)		23.07		10.19			67,910		1.30			1.32			0.28			23
Year ended 10/31/13		17.59		0.14			4.44			4.58			(0.14	)		—			(0.14	)		22.03		26.23			77,769		1.30			1.32			0.69			35
Class S
Year ended 10/31/17		18.32		0.11			2.28			2.39			(0.18	)		(1.77	)		(1.95	)		18.76		13.94			19,028		1.00	^(d)		1.01	^(d)		0.60	^(d)		30
Year ended 10/31/16		20.32		0.18			0.34			0.52			(0.24	)		(2.28	)		(2.52	)		18.32		3.63			18,364		1.01			1.02			0.98			28
Year ended 10/31/15		23.30		0.21			(0.74	)		(0.53	)		(0.15	)		(2.30	)		(2.45	)		20.32		(2.42	)		19,329		0.97			0.98			0.99			47
Year ended 10/31/14		22.24		0.14			2.09			2.23			(0.22	)		(0.95	)		(1.17	)		23.30		10.57			23,137		0.95			0.97			0.63			23
Year ended 10/31/13		17.75		0.21			4.48			4.69			(0.20	)		—			(0.20	)		22.24		26.73			24,014		0.95			0.97			1.04			35
Class Y
Year ended 10/31/17		18.39		0.14			2.29			2.43			(0.21	)		(1.77	)		(1.98	)		18.84		14.13			129,285		0.85	^(d)		0.86	^(d)		0.75	^(d)		30
Year ended 10/31/16		20.40		0.20			0.34			0.54			(0.27	)		(2.28	)		(2.55	)		18.39		3.76			102,182		0.86			0.87			1.13			28
Year ended 10/31/15		23.38		0.25			(0.75	)		(0.50	)		(0.18	)		(2.30	)		(2.48	)		20.40		(2.24	)		183,005		0.82			0.83			1.14			47
Year ended 10/31/14		22.31		0.18			2.09			2.27			(0.25	)		(0.95	)		(1.20	)		23.38		10.75			479,371		0.80			0.82			0.78			23
Year ended 10/31/13		17.81		0.24			4.49			4.73			(0.23	)		—			(0.23	)		22.31		26.89			469,066		0.80			0.82			1.19			35
Class R5
Year ended 10/31/17		19.05		0.16			2.38			2.54			(0.24	)		(1.77	)		(2.01	)		19.58		14.19			29,835		0.77	^(d)		0.78	^(d)		0.83	^(d)		30
Year ended 10/31/16		21.03		0.23			0.36			0.59			(0.29	)		(2.28	)		(2.57	)		19.05		3.92			38,682		0.75			0.76			1.24			28
Year ended 10/31/15		24.04		0.27			(0.78	)		(0.51	)		(0.20	)		(2.30	)		(2.50	)		21.03		(2.22	)		110,943		0.73			0.74			1.23			47
Year ended 10/31/14		22.90		0.20			2.16			2.36			(0.27	)		(0.95	)		(1.22	)		24.04		10.87			414,713		0.72			0.74			0.86			23
Year ended 10/31/13		18.29		0.26			4.61			4.87			(0.26	)		—			(0.26	)		22.90		26.99			413,033		0.72			0.74			1.27			35
Class R6
Year ended 10/31/17		19.05		0.17			2.38			2.55			(0.25	)		(1.77	)		(2.02	)		19.58		14.27			18,290		0.69	^(d)		0.70	^(d)		0.91	^(d)		30
Year ended 10/31/16		21.04		0.24			0.36			0.60			(0.31	)		(2.28	)		(2.59	)		19.05		3.99			2,948		0.68			0.69			1.31			28
Year ended 10/31/15		24.05		0.29			(0.77	)		(0.48	)		(0.23	)		(2.30	)		(2.53	)		21.04		(2.12	)		125,997		0.64			0.65			1.32			47
Year ended 10/31/14		22.91		0.22			2.16			2.38			(0.29	)		(0.95	)		(1.24	)		24.05		10.96			135,294		0.63			0.65			0.95			23
Year ended 10/31/13		18.29		0.28			4.62			4.90			(0.28	)		—			(0.28	)		22.91		27.15			130,764		0.63			0.65			1.36			35

^(a)	Calculated using average shares outstanding.

^(b)

Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.

^(c)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)	Ratios are based on average daily net assets (000’s omitted) of $3,454,970, $20,092, $186,189, $33,621, $19,052, $134,592, $35,009 and $7,197 for Class A, Class B, Class C, Class R, Class S, Class Y, Class R5 and Class R6 shares, respectively.

NOTE 13—Subsequent Event

On December 1, 2017, the Fund’s Board of Trustees approved the early conversion of the remaining assets in the Fund’s Class B shares into Class A shares to occur on or about January 26, 2018. At the close of business on or about January 26, 2018, (the “Conversion Date”) all outstanding Class B shares of the Fund will be converted to Class A shares of the Fund, which is prior to the date the Class B shares would normally be converted to Class A shares. Once the conversion is completed, Class B shares will be closed and become inactive. No contingent deferred sales charges will be payable in connection with this early conversion. The conversion of the Fund’s Class B shares into Class A shares on the Conversion Date is not expected to be a taxable event for federal income tax purposes, and should not result in the recognition of gain or loss by converting shareholders, although each shareholder should consult with his or her own tax adviser.

22 Invesco Charter Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Equity Funds (Invesco Equity Funds)

and Shareholders of Invesco Charter Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Charter Fund (one of the portfolios constituting the AIM Equity Funds (Invesco Equity Funds), hereafter referred to as the “Fund”) as of October 31, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of October 31, 2017 by correspondence with the custodian, transfer agent and brokers, and when replies were not received from brokers, we performed other auditing procedures, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Houston, Texas

December 21, 2017

23 Invesco Charter Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period May 1, 2017 through October 31, 2017.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.


Class	Beginning Account Value (05/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
Class	Beginning Account Value (05/01/17)		Ending Account Value (10/31/17)¹		Expenses Paid During Period²		Ending Account Value (10/31/17)		Expenses Paid During Period²		Annualized Expense Ratio
A	$	1,000.00	$	1,044.00	$	5.56	$	1,019.76	$	5.50		1.08	%
B		1,000.00		1,039.60		9.41		1,015.98		9.30		1.83
C		1,000.00		1,039.50		9.41		1,015.98		9.30		1.83
R		1,000.00		1,042.10		6.85		1,018.50		6.77		1.33
S		1,000.00		1,044.00		5.05		1,020.27		4.99		0.98
Y		1,000.00		1,044.90		4.28		1,021.02		4.23		0.83
R5		1,000.00		1,045.40		3.87		1,021.42		3.82		0.75
R6		1,000.00		1,045.90		3.51		1,021.78		3.47		0.68

The actual ending account value is based on the actual total return of the Fund for the period May 1, 2017 through October 31, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 184/365 to reflect the most recent fiscal half year.

24 Invesco Charter Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Equity Funds (Invesco Equity Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco Charter Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Senior Officer’s evaluation is prepared as part of his

responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable. In addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee.

The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A.	Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the

greater uncertainty that may be associated with entering into a new relationship. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B.	Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance during the past one, three and five calendar years to the performance of funds in the Broadridge performance universe and against the Lipper Large-Cap Core Funds Index. The Board noted that performance of Class A shares of the Fund was in the third quintile of its performance universe for the one year period and the fifth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was below the performance of the Index for the one, three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.	Advisory and Sub-Advisory Fees

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group at a common asset level. The Board noted that the contractual management fee rate for Class A shares of the Fund was above the median contractual management fee rate of funds in its expense group. The Board noted that the term

25 Invesco Charter Fund

“contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group.

The Board also compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was above the rate of one mutual fund advised by Invesco Advisers using a similar investment process.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to certain other types of client accounts. These additional services include provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended.

Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets for other client accounts. Invesco Advisers advised the Board that advance notice of redemptions is often provided to Invesco Advisers by institutional clients. The Board did note that sub-advisory fee rates charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts tended to be more comparable, reflecting a similar scope of services.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D.	Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

E.	Profitability and Financial Resources

The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds and the Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund to be excessive given the nature, quality and extent of the services provided. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

F.	Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board also noted how the Fund’s rate compared to the effective sub-adviser fee rate of one fund sub-advised by Invesco Advisers. The Board also considered that it receives periodic reports from the Chief Compliance Officer of the Invesco Funds demonstrating that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

26 Invesco Charter Fund

Tax Information

Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.

The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.

The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2017:


Federal and State Income Tax
Long-Term Capital Gain Distributions	$	365,280,782
Qualified Dividend Income*		100	%
Corporate Dividends Received Deduction*		100	%
U.S. Treasury Obligations*		0	%

The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.


Non-Resident Alien Shareholders
Qualified Short-Term Gains	$	5,067,614

27 Invesco Charter Fund

Trustees and Officers

The address of each trustee and officer is AIM Equity Funds (Invesco Equity Funds) (the “Trust”), 11 Greenway Plaza, Suite 1000, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirement or removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors are elected and qualified. Column two below includes length of time served with predecessor entities, if any.


Name, Year of Birth and Position(s) Held with the Trust	Trustee and/ or Officer Since	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Directorship(s) Held by Trustee During Past 5 Years
Interested Persons
Martin L. Flanagan¹ — 1960 Trustee	2007	Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Chairman and Chief Executive Officer, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Holding Company (US), Inc. (formerly IVZ Inc.) (holding company), Invesco Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)	158	None
Philip A. Taylor² — 1954 Trustee and Senior Vice President	2006	Head of the Americas and Senior Managing Director, Invesco Ltd.; Director, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.) (financial services holding company); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent); Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); Director, Chairman and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Trustee and Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management). Formerly: Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, Van Kampen Exchange Corp; President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust); Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust only); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent); Director and Chairman, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company), Invesco Canada Holdings Inc. (holding company), Trimark Investments Ltd./Placements Trimark Ltèe and Invesco Financial Services Ltd/Services Financiers Invesco Ltèe; Chief Executive Officer, Invesco Canada Fund Inc. (corporate mutual fund company); Director and Chairman, Van Kampen Investor Services Inc.; Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company) and Van Kampen Investments Inc.; Director and President, AIM GP Canada Inc. (general partner for limited partnerships) and Van Kampen Advisors, Inc.; Director and Chief Executive Officer, Invesco Trimark Dealer Inc. (registered broker dealer); Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), and Short-Term Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.	158	None

¹	Mr. Flanagan is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer of the Adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the Adviser.

²	Mr. Taylor is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer and a director of the Adviser.

T-1 Invesco Charter Fund

Trustees and Officers—(continued)


Name, Year of Birth and Position(s) Held with the Trust	Trustee and/ or Officer Since	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Directorship(s) Held by Trustee During Past 5 Years
Independent Trustees
Bruce L. Crockett — 1944 Trustee and Chair	1993	Chairman, Crockett Technologies Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer, COMSAT Corporation; Chairman, Board of Governors of INTELSAT (international communications company); ACE Limited (insurance company); Independent Directors Council and Investment Company Institute: Member of the Audit Committee, Investment Company Institute; Member of the Executive Committee and Chair of the Governance Committee, Independent Directors Council	158	Director and Chairman of the Audit Committee, ALPS (Attorneys Liability Protection Society) (insurance company); Director and Member of the Audit Committee, Ferroglobe PLC (metallurgical company)
David C. Arch — 1945 Trustee	2010	Chairman of Blistex Inc. (consumer health care products manufacturer); Member, World Presidents’ Organization	158	Board member of the Illinois Manufacturers’ Association
James T. Bunch — 1942 Trustee	2003	Managing Member, Grumman Hill Group LLC (family office/private equity investments) Formerly: Chairman of the Board, Denver Film Society; Chairman of the Board of Trustees, Evans Scholarship Foundation; Chairman, Board of Governors, Western Golf Association	158	Trustee, Evans Scholarship Foundation
Jack M. Fields — 1952 Trustee	1997	Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Discovery Learning Alliance (non-profit) Formerly: Owner and Chief Executive Officer, Dos Angeles Ranch L.P. (cattle, hunting, corporate entertainment); Director, Insperity, Inc. (formerly known as Administaff) (human resources provider); Chief Executive Officer, Texana Timber LP (sustainable forestry company); Director of Cross Timbers Quail Research Ranch (non-profit); and member of the U.S. House of Representatives	158	None
Cynthia Hostetler — 1962 Trustee	2017	Non-Executive Director and Trustee of a number of public and private business corporations Formerly: Head of Investment Funds and Private Equity, Overseas Private Investment Corporation; President, First Manhattan Bancorporation, Inc.; Attorney, Simpson Thacher & Bartlett LLP	158	Vulcan Materials Company (construction materials company); Trilinc Global Impact Fund; Aberdeen Investment Funds (4 portfolios); Artio Global Investment LLC (mutual fund complex); Edgen Group, Inc. (specialized energy and infrastructure products distributor)
Eli Jones — 1961 Trustee	2016	Professor and Dean, Mays Business School — Texas A&M University Formerly: Professor and Dean, Walton College of Business, University of Arkansas and E.J. Ourso College of Business, Louisiana State University; Director, Arvest Bank	158	Insperity, Inc. (formerly known as Administaff) (human resources provider)
Prema Mathai-Davis — 1950 Trustee	1998	Retired. Formerly: Chief Executive Officer, YWCA of the U.S.A.	158	None
Teresa M. Ressel — 1962 Trustee	2017	Non-executive director and trustee of a number of public and private business corporations Formerly: Chief Financial Officer, Olayan America, The Olayan Group (international investor/commercial/industrial); Chief Executive Officer, UBS Securities LLC; Group Chief Operating Officer, Americas, UBS AG; Assistant Secretary for Management & Budget and CFO, US Department of the Treasury; Chief Compliance Officer, Kaiser Permanente (healthcare consortium); Program Manager, Hewlett-Packard; Nuclear Engineering, General Dynamics Corporation (aerospace and defense company)	158	Atlantic Power Corporation (power generation company); ON Semiconductor Corp. (semiconductor supplier)
Larry Soll — 1942 Trustee	2003	Retired. Formerly: Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)	158	None
Ann Barnett Stern — 1957 Trustee	2017	President and Chief Executive Officer, Houston Endowment Inc. (private philanthropic institution) Formerly: Executive Vice President and General Counsel, Texas Children’s Hospital; Attorney, Beck, Redden and Secrest, LLP; Business Law Instructor, University of St. Thomas; Attorney, Andrews & Kurth LLP	158	Federal Reserve Bank of Dallas
Raymond Stickel, Jr. — 1944 Trustee	2005	Retired. Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios); Partner, Deloitte & Touche	158	None
Robert C. Troccoli — 1949 Trustee	2016	Adjunct Professor, University of Denver — Daniels College of Business Formerly: Senior Partner, KPMG LLP	158	None

T-2 Invesco Charter Fund

Trustees and Officers—(continued)


Name, Year of Birth and Position(s) Held with the Trust	Trustee and/ or Officer Since	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Directorship(s) Held by Trustee During Past 5 Years
Independent Trustees—(continued)
Christopher L. Wilson — 1957 Trustee	2017	Managing Partner, CT2, LLC (investing and consulting firm) Formerly: President/Chief Executive Officer, Columbia Funds, Bank of America Corporation; President/Chief Executive Officer, CDC IXIS Asset Management Services, Inc.; Principal & Director of Operations, Scudder Funds, Scudder, Stevens & Clark, Inc.; Assistant Vice President, Fidelity Investments	158	TD Asset Management USA Inc. (mutual fund complex) (22 portfolios); ISO New England, Inc. (non-profit organization managing regional electricity market)
Other Officers
Sheri Morris — 1964 President, Principal Executive Officer and Treasurer	1999	President, Principal Executive Officer and Treasurer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust Formerly: Vice President and Principal Financial Officer, The Invesco Funds; Vice President, Invesco Aim Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust	N/A	N/A
Russell C. Burk — 1958 Senior Vice President and Senior Officer	2005	Senior Vice President and Senior Officer, The Invesco Funds	N/A	N/A
John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary	2006	Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Managing Director, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.) and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust; Manager and Secretary, Invesco Indexing LLC Formerly: Director, Secretary, General Counsel and Senior Vice President, Van Kampen Exchange Corp.; Director, Vice President and Secretary, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Director and Vice President, Van Kampen Advisors Inc.; Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; Director, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco AIM Advisers, Inc. and Van Kampen Investments Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco AIM Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)	N/A	N/A
Gregory G. McGreevey — 1962 Senior Vice President	2012	Senior Managing Director, Invesco Ltd.; Director, Chairman, President, and Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President, Invesco Management Group, Inc.; Director, Invesco Mortgage Capital, Inc. and Invesco Senior Secured Management, Inc.; and Senior Vice President, The Invesco Funds Formerly: Assistant Vice President, The Invesco Funds	N/A	N/A

T-3 Invesco Charter Fund

Trustees and Officers—(continued)


Name, Year of Birth and Position(s) Held with the Trust	Trustee and/ or Officer Since	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Directorship(s) Held by Trustee During Past 5 Years
Other Officers—(continued)
Kelli Gallegos — 1970 Vice President, Principal Financial Officer and Assistant Treasurer	2008	Vice President, Principal Financial Officer and Assistant Treasurer, The Invesco Funds; Assistant Treasurer, Invesco PowerShares Capital Management LLC, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust Formerly: Assistant Vice President, The Invesco Funds	N/A	N/A
Tracy Sullivan — 1962 Vice President, Chief Tax Officer and Assistant Treasurer	2008	Vice President, Chief Tax Officer and Assistant Treasurer, The Invesco Funds; Assistant Treasurer, Invesco PowerShares Capital Management LLC, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust Formerly: Assistant Vice President, The Invesco Funds	N/A	N/A
Crissie M. Wisdom — 1969 Anti-Money Laundering Compliance Officer	2013	Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser), Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.), Invesco Distributors, Inc., Invesco Investment Services, Inc., Invesco Management Group, Inc., The Invesco Funds, and PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust; Anti-Money Laundering Compliance Officer and Bank Secrecy Act Officer, INVESCO National Trust Company and Invesco Trust Company; and Fraud Prevention Manager and Controls and Risk Analysis Manager for Invesco Investment Services, Inc. Formerly: Anti-Money Laundering Compliance Officer, Van Kampen Exchange Corp.	N/A	N/A
Robert R. Leveille — 1969 Chief Compliance Officer	2016	Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser); and Chief Compliance Officer, The Invesco Funds Formerly: Chief Compliance Officer, Putnam Investments and the Putnam Funds	N/A	N/A

The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon request, without charge, by calling 1.800.959.4246. Please refer to the Fund’s Statement of Additional Information for information on the Fund’s sub-advisers.

T-4 Invesco Charter Fund

Explore High-Conviction Investing with Invesco

LOGO

Go paperless with eDelivery

Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.

With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:

∎

Fund reports and prospectuses

∎

Quarterly statements

∎

Daily confirmations

∎

Tax forms

Invesco mailing information

Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.

Important notice regarding delivery of security holder documents

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are shown below.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.


SEC file numbers: 811-01424 and 002-25469		Invesco Distributors, Inc.		CHT-AR-1		12112017		1247

LOGO

Letters to Shareholders

LOGO

Philip Taylor

Dear Shareholders:

eventually recovering most of its losses. Overseas, economic data were mixed, prompting the European Central Bank and central banks in China and Japan, among other countries, to maintain extraordinarily accommodative monetary policies. Citing positive economic trends – specifically, realized and expected labor market conditions and inflation – the US Federal Reserve raised interest rates three times during the reporting period: first in December 2016, and then again in March and June 2017. Health care and tax reform proved to be more difficult than expected to enact, with little progress achieved by the end of the reporting period.

Visit our website for more information on your investments

Have questions?

For questions about your account, contact an Invesco client services representative at 800 959 4246. For Invesco-related questions or comments, please email me directly at phil@invesco.com.

All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.

Sincerely,

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

2 Invesco Diversified Dividend Fund

LOGO

Bruce Crockett

Dear Fellow Shareholders:

Among the many important lessons I’ve learned in more than 40 years in a variety of business endeavors is the value of a trusted advocate.

As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment, including but not limited to:

∎ Ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time.

∎ Monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions.

∎

Assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus.

∎

Monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.

I trust the measures outlined above provide assurance that you have a worthy advocate when it comes to choosing the Invesco Funds.

Sincerely,

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

3 Invesco Diversified Dividend Fund

Management’s Discussion of Fund Performance

Performance summary

For the fiscal year ended October 31, 2017, Class A shares of Invesco Diversified Dividend Fund (the Fund), at net asset value (NAV), underperformed the Russell 1000 Value Index, the Fund’s style-specific benchmark.

Your Fund’s long-term performance appears later in this report.

Fund vs. Indexes


Class A Shares	11.65	%
Class B Shares	10.83
Class C Shares	10.84
Class R Shares	11.40
Class Y Shares	11.93
Investor Class Shares	11.69
Class R5 Shares	11.99
Class R6 Shares	12.15
S&P 500 Index^▼ (Broad Market Index)	23.63
Russell 1000 Value Index^▼(Style-Specific Index)	17.78
Lipper Large-Cap Value Funds Index^∎ (Peer Group Index)	20.67

Source(s): ^▼FactSet Research Systems Inc.;^∎Lipper Inc.

Market conditions and your Fund

The US economy continued to expand throughout the fiscal year ended October 31, 2017. This improvement led the US Federal Reserve (the Fed) to raise interest rates three times during the reporting period, most recently in June 2017.¹ At the close of the reporting period, Fed policy remained accommodative, and the fed funds target rate upper bound was 1.25% – up 75 basis points for the reporting period.¹ (A basis point is 0.01%.)

rally continued throughout the reporting period, fueled by generally positive economic data, strong corporate earnings and improved consumer confidence.

Within the S&P 500 Index, information technology (IT) and financials were the best-performing sectors for the fiscal year, while telecommunication services, energy and consumer staples were the worst-performing sectors. It is important to view the market’s performance within the context of a full market cycle. This cycle, which began in June 2009, is one of the longest expansions on record with one of the largest bull markets, despite a historically low recovery in revenue versus previous cycle troughs.² In this environment, we remained focused on our assessment of each investment’s risk reward profile.

During the reporting period, our total return approach continued to emphasize long-term capital appreciation, current

income and capital preservation. We believe the Fund may serve as an equity foundation within a well-diversified asset allocation strategy, complementing more aggressive and cyclical investments. We look for dividend-paying companies with strong profitability, solid balance sheets and capital allocation policies that support sustained or increasing dividends and share repurchases. We perform extensive fundamental research, incorporating both financial statement analysis and an assessment of the potential reward relative to the downside risk, to determine a fair valuation over our two- to three-year investment horizon for each stock. We believe this process may provide a valuable combination of dividend income, price appreciation and capital preservation. We also maintain a rigorous sell discipline and consider selling or reducing shares in stocks that no longer meet our investment criteria.

During the fiscal year, holdings in the financials sector were the largest contributors to the Fund’s performance. American Express, Hartford Financial Services and Zions Bancorp were the top three contributors. Shares of American Express rose as the company’s co-branded card business stabilized amid a backdrop of technological and competitive industry changes. The company also showed strong top-line growth as it executed on its strategy to expand lending into the small and medium market channels. The company’s long-term CEO also announced his retirement, putting an end to an overhang on the stock over succession plans. Hartford’s stock price appreciated following an expansion in earnings within its property and casualty operations, management’s renewed focus on improving underwriting results within the company’s personal auto lines operation, as well as a favorable state regulatory ruling concerning the company’s ability to


Portfolio Composition


By sector		% of total net assets


Consumer Staples	19.7	%
Utilities	16.4
Financials	13.8
Industrials	8.4
Consumer Discretionary	6.9
Energy	6.8
Health Care	5.9
Telecommunication Services	5.1
Materials	2.3
Real Estate	1.6
Information Technology	0.9
Money Market Funds Plus Other Assets Less Liabilities	12.2

Top 10 Equity Holdings*

% of total net assets


1. General Mills, Inc.	2.9	%
2. Hartford Financial Services Group, Inc. (The)	2.8
3. PPL Corp.	2.8
4. Coca-Cola Co. (The)	2.7
5. Exelon Corp.	2.7
6. AT&T Inc.	2.6
7. Suncor Energy, Inc.	2.2
8. TOTAL S.A.	2.0
9. Entergy Corp.	2.0
10. Dominion Energy, Inc.	2.0


Total Net Assets	$	23.8 billion

Total Number of Holdings*		70

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.

*Excluding money market fund holdings.

Data presented here are as of October 31, 2017.

4 Invesco Diversified Dividend Fund

potentially divest non-core businesses. Zions reported higher earnings as loan growth increased from strength in residential mortgages and moderate growth in commercial loans. The company also saw improved profitability through continued efficiency initiatives. Concerns about the company’s energy loan portfolio abated, benefiting its asset quality and stock price. In addition, Zion’s regulatory capital and liquidity levels remained high.

Within the consumer staples sector, General Mills was the largest detractor from the Fund’s performance. The company saw weaker revenue trends driven by declines in its yogurt, and meals and baking categories. Management is focused on increasing innovation in yogurt and building on its organics and naturals platform to reinvigorate growth.

Telecommunication services sector holding BT Group was also a large detractor from the Fund’s performance. The company’s stock price declined due to losses within its global services business, as well as the loss of several key public service contracts in the UK. During the reporting period, the company faced regulatory uncertainty regarding independence of its infrastructure unit and pricing regulation of its products.

Within the Fund’s style-specific benchmark, financials, materials and IT were the best-performing sectors, while telecommunication services, energy and consumer staples were the worst-performing sectors during the fiscal year. The Fund’s overweight position in the consumer staples sector detracted from its performance versus the style-specific index. The Fund’s underweight positions in the financials and IT sectors also detracted from the Fund’s relative performance, as did the Fund’s unusually large cash position in a rising market environment. While the Fund’s cash position was higher than normal for much of the fiscal year, it did decrease and end the reporting period closer to normal levels. Strong stock selection and underweight position in the energy sector helped the Fund’s relative performance.

The Fund has successfully navigated multiple market cycles over its history with a consistent long-term mandate to emphasize capital appreciation, current income and capital preservation.

It has been our privilege to oversee Invesco Diversified Dividend Fund, and we thank you for your continued investment.

1	Source: US Federal Reserve

2	Sources: National Bureau of Economic Research, Ned Davis Research and FactSet Research Systems Inc.

See important Fund and, if applicable, index disclosures later in this report.

Meggan Walsh

Chartered Financial Analyst, Portfolio Manager and Head of Invesco’s Dividend Value Team, is lead

manager of Invesco Diversified Dividend Fund. She joined Invesco in 1991. Ms. Walsh earned a BS in finance from the University of Maryland and an MBA from Loyola University Maryland.

Robert Botard

Chartered Financial Analyst, Portfolio Manager, is manager of Invesco Diversified Dividend Fund. He joined Invesco in 1993.

Mr. Botard earned a BBA in finance and a BBA in international business from The University of Texas at Austin. He also earned a Master of International Management degree from the Thunderbird School of Global Management.

Kristina Bradshaw

Chartered Financial Analyst, Portfolio Manager, is manager of Invesco Diversified Dividend Fund. She joined Invesco in 2006.

Ms. Bradshaw earned a BBA with honors from The University of Texas at Austin and an MBA from Stanford University’s Graduate School of Business.

Chris McMeans

Chartered Financial Analyst, Portfolio Manager is manager of Invesco Diversified Dividend Fund. He joined Invesco in 2008.

Mr. McMeans earned a BA in economics from The University of Texas at Austin and an MBA with honors from the University of Houston.

5 Invesco Diversified Dividend Fund

Your Fund’s Long-Term Performance

Results of a $10,000 Investment – Oldest Share Class(es)

Fund and index data from 10/31/07

LOGO

Past performance cannot guarantee comparable future results.

The data shown in the chart include reinvested distributions, applicable sales charges Fund expenses including management fees. Results for Class B shares are calculated as if a hypothetical

shareholder had liquidated his entire investment in the Fund at the close of the reporting period and paid the contingent deferred sales charges, if applicable. Index results include reinvested dividends, but they do not reflect sales charges. Performance of the peer group,

if applicable, reflects fund expenses and management fees; performance of a market index does not. Performance shown in the chart and table(s) does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

6 Invesco Diversified Dividend Fund


Average Annual Total Returns
As of 10/31/17, including maximum applicable sales charges

Class A Shares
Inception (12/31/01)	7.54	%
10 Years	6.85
5 Years	11.27
1 Year	5.49

Class B Shares
Inception (12/31/01)	7.56	%
10 Years	6.81
5 Years	11.43
1 Year	5.83

Class C Shares
Inception (12/31/01)	7.15	%
10 Years	6.66
5 Years	11.70
1 Year	9.84

Class R Shares
Inception (10/25/05)	8.22	%
10 Years	7.21
5 Years	12.25
1 Year	11.40

Class Y Shares
10 Years	7.70	%
5 Years	12.81
1 Year	11.93

Investor Class Shares
Inception (7/15/05)	8.05	%
10 Years	7.51
5 Years	12.57
1 Year	11.69

Class R5 Shares
Inception (10/25/05)	8.83	%
10 Years	7.82
5 Years	12.87
1 Year	11.99

Class R6 Shares
10 Years	7.67	%
5 Years	12.99
1 Year	12.15

Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.

Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance


Average Annual Total Returns
As of 9/30/17, the most recent calendar quarter end, including maximum applicable sales charges

Class A Shares
Inception (12/31/01)	7.54	%
10 Years	6.83
5 Years	11.26
1 Year	4.29

Class B Shares
Inception (12/31/01)	7.56	%
10 Years	6.81
5 Years	11.42
1 Year	4.51

Class C Shares
Inception (12/31/01)	7.15	%
10 Years	6.65
5 Years	11.66
1 Year	8.46

Class R Shares
Inception (10/25/05)	8.23	%
10 Years	7.20
5 Years	12.25
1 Year	10.10

Class Y Shares
10 Years	7.69	%
5 Years	12.81
1 Year	10.61

Investor Class Shares
Inception (7/15/05)	8.06	%
10 Years	7.50
5 Years	12.56
1 Year	10.38

Class R5 Shares
Inception (10/25/05)	8.84	%
10 Years	7.81
5 Years	12.86
1 Year	10.68

Class R6 Shares
10 Years	7.65	%
5 Years	12.96
1 Year	10.78

for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6 shares was 0.82%,

1.57%, 1.57%, 1.07%, 0.57%, 0.78%, 0.52% and 0.42%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R Class Y, Investor Class, Class R5 and Class R6 shares was 0.84%, 1.59%, 1.59%, 1.09%, 0.59%, 0.80%, 0.54% and 0.44%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the be-ginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Investor Class, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

1	Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2019. See current prospectus for more information.

7 Invesco Diversified Dividend Fund

Invesco Diversified Dividend Fund’s investment objective is long-term growth of capital and, secondarily, current income.

∎

Unless otherwise stated, information presented in this report is as of October 31, 2017, and is based on total net assets.

∎

Unless otherwise noted, all data provided by Invesco.

∎

To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

About share classes

∎

Class B shares may not be purchased for new or additional investments. Please see the prospectus for more information.

∎

Class R shares are generally available only to employer sponsored retirement and benefit plans. Please see the prospectus for more information.

∎

Class Y shares and Investor Class shares are available only to certain investors. Please see the prospectus for more information.

∎

Class R5 shares and Class R6 shares are available for use by retirement plans that meet certain standards and for institutional investors. Class R6 shares are also available through intermediaries that have established an agreement with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts. Please see the prospectus for more information.

Principal risks of investing in the Fund

∎

over short periods of time. Currency hedging strategies, if used, are not always successful.

∎

Value investing style risk. A value investing style subjects the Fund to the risk that the valuations never improve or that the returns on value equity securities are less than returns on other styles of investing or the overall stock market.

About indexes used in this report

∎

The S&P 500^® Index is an unmanaged index considered representative of the US stock market.

∎

The Russell 1000^® Value Index is an unmanaged index considered representative of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

∎

The Lipper Large-Cap Value Funds Index is an unmanaged index considered representative of large-cap value funds tracked by Lipper.

∎

Other information

∎

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

8 Invesco Diversified Dividend Fund

Schedule of Investments^(a)

October 31, 2017


	Shares		Value
Common Stocks & Other Equity Interests–87.83%
Aerospace & Defense–1.74%
General Dynamics Corp.		1,319,381	$	267,807,955
Raytheon Co.		815,787		147,004,818
				414,812,773

Air Freight & Logistics–1.23%
United Parcel Service, Inc.–Class B		2,495,588		293,306,458

Apparel Retail–0.69%
TJX Cos., Inc. (The)		2,345,756		163,733,769

Apparel, Accessories & Luxury Goods–0.84%
Columbia Sportswear Co.		1,388,853		86,636,650
Tapestry, Inc.		2,741,614		112,269,093
				198,905,743

Asset Management & Custody Banks–0.94%
Federated Investors, Inc.–Class B		3,998,788		124,242,343
Legg Mason, Inc.		2,623,031		100,147,324
				224,389,667

Brewers–1.54%
Heineken N.V. (Netherlands)		3,772,794		367,679,654

Consumer Finance–1.76%
American Express Co.		4,382,919		418,656,423

Data Processing & Outsourced Services–0.92%
Automatic Data Processing, Inc.		1,893,467		220,134,473

Drug Retail–0.84%
Walgreens Boots Alliance, Inc.		3,025,145		200,476,359

Electric Utilities–11.56%
American Electric Power Co., Inc.		4,778,425		355,562,604
Duke Energy Corp.		4,313,392		380,915,648
Entergy Corp.		5,531,589		477,154,867
Exelon Corp.		15,899,927		639,336,065
PPL Corp.		17,654,917		663,118,682
SSE PLC (United Kingdom)		12,938,128		237,524,468
				2,753,612,334

Electrical Components & Equipment–2.62%
ABB Ltd. (Switzerland)		11,297,425		295,653,424
Emerson Electric Co.		5,077,995		327,327,557
				622,980,981

Food Distributors–1.29%
Sysco Corp.		5,516,540		306,829,955

General Merchandise Stores–1.67%
Target Corp.		6,757,334		398,952,999

Health Care Equipment–0.78%
Stryker Corp.		1,193,719		184,871,261


	Shares		Value
Hotels, Resorts & Cruise Lines–0.53%
Accor S.A. (France)		2,523,210	$	125,904,373

Household Products–3.16%
Kimberly-Clark Corp.		2,662,730		299,583,752
Procter & Gamble Co. (The)		5,255,638		453,771,785
				753,355,537

Housewares & Specialties–0.55%
Newell Brands, Inc.		3,238,815		132,078,876

Human Resource & Employment Services–0.54%
Robert Half International, Inc.		2,477,549		128,262,712

Industrial Conglomerates–0.18%
Siemens AG (Germany)		293,059		41,819,593

Industrial Machinery–2.10%
Flowserve Corp.^(b)		7,512,040		331,055,603
Pentair PLC (United Kingdom)		2,392,531		168,577,734
				499,633,337

Integrated Oil & Gas–5.01%
Royal Dutch Shell PLC–Class B (United Kingdom)		5,683,775		182,967,919
Suncor Energy, Inc. (Canada)		15,422,400		523,603,689
TOTAL S.A. (France)		8,746,675		487,747,512
				1,194,319,120

Integrated Telecommunication Services–5.10%
AT&T Inc.		18,303,357		615,907,963
BT Group PLC (United Kingdom)		82,493,968		285,249,721
Deutsche Telekom AG (Germany)		17,239,901		314,094,377
				1,215,252,061

Motorcycle Manufacturers–1.05%
Harley-Davidson, Inc.		5,263,542		249,176,078

Movies & Entertainment–0.88%
Time Warner Inc.		2,127,874		209,148,735

Multi-Line Insurance–2.83%
Hartford Financial Services Group, Inc. (The)		12,256,855		674,739,868

Multi-Utilities–4.86%
Consolidated Edison, Inc.		4,595,299		395,425,479
Dominion Energy, Inc.		5,872,555		476,499,113
Sempra Energy		2,421,182		284,488,885
				1,156,413,477

Oil & Gas Equipment & Services–0.23%
Baker Hughes, a GE Co.		1,716,916		53,962,670

Oil & Gas Exploration & Production–1.54%
ConocoPhillips		7,158,652		366,165,050

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

9 Invesco Diversified Dividend Fund


	Shares		Value
Packaged Foods & Meats–7.41%
Campbell Soup Co.		6,324,540	$	299,593,460
Danone S.A. (France)		1,965,033		160,555,155
General Mills, Inc.		13,370,983		694,221,438
Kraft Heinz Co. (The)		4,060,155		313,971,786
Mondelez International, Inc.–Class A		7,171,554		297,117,482
				1,765,459,321

Paper Packaging–2.29%
Avery Dennison Corp.		1,215,284		129,026,702
International Paper Co.		5,236,518		299,895,386
Sonoco Products Co.		2,264,695		117,288,554
				546,210,642

Personal Products–0.78%
L’Oreal S.A. (France)		835,132		185,862,088

Pharmaceuticals–5.15%
Bayer AG (Germany)		1,833,697		239,511,352
Bristol-Myers Squibb Co.		7,003,419		431,830,815
Eli Lilly and Co.		4,274,574		350,258,594
Johnson & Johnson		1,467,509		204,585,430
				1,226,186,191

Property & Casualty Insurance–0.97%
Travelers Cos., Inc. (The)		1,746,496		231,323,395

Regional Banks–7.31%
Cullen/Frost Bankers, Inc.		1,626,972		160,256,742
Fifth Third Bancorp		9,751,225		281,810,402
KeyCorp		12,069,575		220,269,744
M&T Bank Corp.		2,404,392		400,980,454


	Shares		Value
Regional Banks–(continued)
PNC Financial Services Group, Inc. (The)		2,238,830	$	306,249,556
Zions Bancorp.		7,990,117		371,220,836
				1,740,787,734

Restaurants–0.71%
Darden Restaurants, Inc.		2,049,866		168,642,476

Soft Drinks–2.68%
Coca-Cola Co. (The)		13,909,040		639,537,659

Specialized REIT’s–1.59%
Weyerhaeuser Co.		10,542,405		378,577,764

Tobacco–1.96%
Altria Group, Inc.		2,640,117		169,548,314
Philip Morris International Inc.		2,850,249		298,250,055
				467,798,369
Total Common Stocks & Other Equity Interests (Cost $16,224,353,620)				20,919,959,975

Money Market Funds–12.22%
Invesco Government & Agency Portfolio–Institutional Class, 0.95%^(c)		1,746,351,642		1,746,351,642
Invesco Treasury Portfolio– Institutional Class, 0.94%^(c)		1,164,234,429		1,164,234,429
Total Money Market Funds (Cost $2,910,586,071)				2,910,586,071
TOTAL INVESTMENTS IN SECURITIES–100.05% (Cost $19,134,939,691)				23,830,546,046
OTHER ASSETS LESS LIABILITIES–(0.05)%				(11,301,729	)
NET ASSETS–100.00%			$	23,819,244,317

Investment Abbreviations:


REIT		– Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)

Affiliated company during the period. The Investment Company Act of 1940 defines an “affiliated person” as an issuance in which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the Investment Company Act of 1940) of that issuer. The value of this security as of October 31, 2017 represented 1.39% of the Fund’s Net Assets. See Note 5.

^(c)	The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of October 31, 2017.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

10 Invesco Diversified Dividend Fund


Open Forward Foreign Currency Contracts
Settlement Date	Counterparty	Contract to						Unrealized Appreciation (Depreciation)
Settlement Date	Counterparty	Deliver			Receive			Unrealized Appreciation (Depreciation)
11/17/2017	Citigroup Global Markets Inc.		CAD	108,815,368		USD	88,724,576	$	4,364,405
11/17/2017	Citigroup Global Markets Inc.		EUR	188,270,775		USD	226,199,975		6,682,672
11/17/2017	Goldman Sachs International		CAD	108,815,368		USD	88,703,529		4,343,358
11/17/2017	Goldman Sachs International		EUR	191,022,784		USD	229,513,383		6,787,331
11/17/2017	Merrill Lynch International		CAD	108,815,368		USD	88,673,241		4,313,071
11/17/2017	Merrill Lynch International		EUR	213,687,286		USD	255,902,447		6,750,358
11/17/2017	State Street Bank and Trust Co.		EUR	216,167,337		USD	259,459,642		7,415,898
Subtotal									40,657,093
11/17/2017	Citigroup Global Markets Inc.		USD	1,924,239		CAD	2,411,820		(54,452	)
11/17/2017	Goldman Sachs International		USD	1,655,911		CAD	2,041,639		(73,111	)
11/17/2017	State Street Bank and Trust Co.		USD	4,663,078		EUR	3,942,163		(66,651	)
Subtotal									(194,214	)
Total Forward Foreign Currency Contracts — Currency Risk								$	40,462,879

Abbreviations:


CAD		– Canadian Dollar
EUR		– Euro
USD		– United States Dollar

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

11 Invesco Diversified Dividend Fund

Statement of Assets and Liabilities

October 31, 2017


Assets:
Investments in securities, at value (Cost $15,895,830,759)	$	20,588,904,372
Investments in affiliates, at value (Cost $3,239,108,932)		3,241,641,674
Other investments:
Unrealized appreciation on forward foreign currency contracts outstanding		40,657,093
Foreign currencies, at value (Cost $335,682)		418,877
Receivable for:
Investments sold		42,021,067
Fund shares sold		32,312,905
Dividends		35,584,850
Investment for trustee deferred compensation and retirement plans		791,633
Other assets		410,545
Total assets		23,982,743,016

Liabilities:
Other investments:
Unrealized depreciation on forward foreign currency contracts outstanding		194,214
Payable for:
Investments purchased		117,989,576
Fund shares reacquired		36,040,648
Accrued fees to affiliates		8,102,494
Accrued trustees’ and officers’ fees and benefits		29,875
Accrued other operating expenses		142,116
Trustee deferred compensation and retirement plans		999,776
Total liabilities		163,498,699
Net assets applicable to shares outstanding	$	23,819,244,317

Net assets consist of:
Shares of beneficial interest	$	18,849,182,518
Undistributed net investment income		96,932,291
Undistributed net realized gain		137,234,475
Net unrealized appreciation		4,735,895,033
	$	23,819,244,317


Net Assets:
Class A	$	6,029,664,193
Class B	$	9,091,765
Class C	$	840,124,892
Class R	$	358,417,692
Class Y	$	4,278,325,142
Investor Class	$	2,113,750,364
Class R5	$	3,845,847,952
Class R6	$	6,344,022,317

Shares outstanding, no par value, with an unlimited number of shares authorized:
Class A		298,820,740
Class B		455,865
Class C		42,174,962
Class R		17,707,027
Class Y		211,797,117
Investor Class		104,830,514
Class R5		190,557,894
Class R6		314,287,884
Class A:
Net asset value per share	$	20.18
Maximum offering price per share
(Net asset value of $20.18 ¸ 94.50%)	$	21.35
Class B:
Net asset value and offering price per share	$	19.94
Class C:
Net asset value and offering price per share	$	19.92
Class R:
Net asset value and offering price per share	$	20.24
Class Y:
Net asset value and offering price per share	$	20.20
Investor Class:
Net asset value and offering price per share	$	20.16
Class R5:
Net asset value and offering price per share	$	20.18
Class R6:
Net asset value and offering price per share	$	20.19

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

12 Invesco Diversified Dividend Fund

Statement of Operations

For the year ended October 31, 2017


Investment income:
Dividends (net of foreign withholding taxes of $8,441,718)	$	565,816,987
Dividends from affiliates		28,503,913
Total investment income		594,320,900

Expenses:
Advisory fees		85,422,458
Administrative services fees		1,156,978
Custodian fees		735,459
Distribution fees:
Class A		15,422,467
Class B		130,283
Class C		8,527,619
Class R		1,518,057
Investor Class		4,390,728
Transfer agent fees — A, B, C, R, Y and Investor		22,893,339
Transfer agent fees — R5		3,817,498
Transfer agent fees — R6		142,112
Trustees’ and officers’ fees and benefits		328,870
Registration and filing fees		846,820
Reports to shareholders		3,131,520
Professional services fees		225,099
Other		239,158
Total expenses		148,928,465
Less: Fees waived and expense offset arrangement(s)		(4,158,149	)
Net expenses		144,770,316
Net investment income		449,550,584

Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		229,948,391
Foreign currencies		(704,756	)
Forward foreign currency contracts		(65,805,540	)
		163,438,095
Change in net unrealized appreciation (depreciation) of:
Investment securities		1,734,729,683
Foreign currencies		(68,766	)
Forward foreign currency contracts		26,168,084
		1,760,829,001
Net realized and unrealized gain		1,924,267,096
Net increase in net assets resulting from operations	$	2,373,817,680

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

13 Invesco Diversified Dividend Fund

Statement of Changes in Net Assets

For the years ended October 31, 2017 and 2016


	2017			2016
Operations:
Net investment income	$	449,550,584		$	281,720,602
Net realized gain		163,438,095			489,070,361
Change in net unrealized appreciation		1,760,829,001			120,872,570
Net increase in net assets resulting from operations		2,373,817,680			891,663,533

Distributions to shareholders from net investment income:
Class A		(104,371,576	)		(87,597,660	)
Class B		(127,541	)		(186,213	)
Class C		(8,002,015	)		(5,342,554	)
Class R		(4,314,212	)		(2,826,974	)
Class Y		(98,168,591	)		(38,800,678	)
Investor Class		(37,353,627	)		(35,300,336	)
Class R5		(75,226,213	)		(55,949,846	)
Class R6		(81,891,302	)		(29,669,892	)
Total distributions from net investment income		(409,455,077	)		(255,674,153	)

Distributions to shareholders from net realized gains:
Class A		(151,389,232	)		(187,921,659	)
Class B		(388,597	)		(884,906	)
Class C		(20,020,835	)		(18,558,267	)
Class R		(6,235,896	)		(8,075,563	)
Class Y		(102,046,387	)		(46,717,282	)
Investor Class		(52,848,731	)		(78,259,112	)
Class R5		(87,151,961	)		(96,137,321	)
Class R6		(68,937,644	)		(33,943,581	)
Total distributions from net realized gains		(489,019,283	)		(470,497,691	)

Share transactions-net:
Class A		(387,579,942	)		1,217,893,699
Class B		(8,203,248	)		(6,485,243	)
Class C		4,014,291			328,459,436
Class R		101,239,116			33,543,725
Class Y		303,448,708			2,439,382,508
Investor Class		(150,451,618	)		101,759,931
Class R5		176,556,635			990,438,812
Class R6		3,470,617,666			1,759,334,300
Net increase in net assets resulting from share transactions		3,509,641,608			6,864,327,168
Net increase in net assets		4,984,984,928			7,029,818,857

Net assets:
Beginning of year		18,834,259,389			11,804,440,532
End of year (includes undistributed net investment income of $96,932,291 and $57,541,540, respectively)	$	23,819,244,317		$	18,834,259,389

Notes to Financial Statements

October 31, 2017

NOTE 1—Significant Accounting Policies

Invesco Diversified Dividend Fund (the “Fund”) is a series portfolio of AIM Equity Funds (Invesco Equity Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of three separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

14 Invesco Diversified Dividend Fund

The Fund’s investment objective is long-term growth of capital and, secondarily, current income.

The Fund currently consists of eight different classes of shares: Class A, Class B, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6. Class Y and Investor Class shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Investor Class, Class R5 and Class R6 shares are sold at net asset value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert to Class A shares. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert to Class A shares. Generally, Class B shares will automatically convert to Class A shares on or about the month-end, which is at least eight years after the date of purchase. Redemption of Class B shares prior to the conversion date will be subject to a CDSC.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.

15 Invesco Diversified Dividend Fund

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

Distributions — Distributions from net investment income, if any, are declared and paid quarterly and are recorded on the ex-dividend date. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

16 Invesco Diversified Dividend Fund

J.	Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Daily Net Assets	Rate
First $350 million		0	.60%
Next $350 million		0	.55%
Next $1.3 billion		0	.50%
Next $2 billion		0	.45%
Next $2 billion		0	.40%
Next $2 billion		0	.375%
Over $8 billion		0	.35%

For the year ended October 31, 2017, the effective advisory fees incurred by the Fund was 0.38%.

The Adviser has contractually agreed, through at least June 30, 2018, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class B, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6 shares to 2.00%, 2.75%, 2.75%, 2.25%, 1.75%, 2.00%, 1.75% and 1.75%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

For the year ended October 31, 2017, the Adviser waived advisory fees of $4,097,896.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class B, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B, Class C, Class R and Investor Class shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net

17 Invesco Diversified Dividend Fund

assets of Class B and Class C shares and 0.50% of the average daily net assets of Class R shares. The Fund, pursuant to the Investor Class Plan, reimburses IDI for its allocated share of expenses incurred pursuant to the Investor Class Plan for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Investor Class shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2017, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2017, IDI advised the Fund that IDI retained $1,595,391 in front-end sales commissions from the sale of Class A shares and $148,346, $862 and $175,234 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

For the year ended October 31, 2017, the Fund incurred $861 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.

NOTE 3—Additional Valuation Information

Level 1 —

Prices are determined using quoted prices in an active market for identical assets.

Level 2 —

Level 3 —

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the year ended October 31, 2017, there were transfers from Level 2 to Level 1 of $1,140,676,887, due to foreign fair value adjustments.


	Level 1		Level 2		Level 3		Total
Common Stocks & Other Equity Interests	$	20,201,827,280	$	718,132,695	$	—	$	20,919,959,975
Money Market Funds		2,910,586,071		—		—		2,910,586,071
		23,112,413,351		718,132,695		—		23,830,546,046
Forward Foreign Currency Contracts*		—		40,462,879		—		40,462,879
Total Investments	$	23,112,413,351	$	758,595,574	$	—	$	23,871,008,925

*	Unrealized appreciation.

NOTE 4—Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a Fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

18 Invesco Diversified Dividend Fund

Value of Derivative Investments at Period–End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of October 31, 2017:


	Value
Derivative Assets	Currency Risk
Unrealized appreciation on forward foreign currency contracts outstanding	$	40,657,093
Derivatives not subject to master netting agreements		—
Total Derivative Assets subject to master netting agreements	$	40,657,093

	Value
Derivative Liabilities	Currency Risk
Unrealized depreciation on forward foreign currency contracts outstanding	$	(194,214	)
Derivatives not subject to master netting agreements		—
Total Derivative Liabilities subject to master netting agreements	$	(194,214	)

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of October 31, 2017.


	Financial Derivative Assets		Financial Derivative Liabilities					Collateral (Received)/Pledged
Counterparty	Forward Foreign Currency Contracts		Forward Foreign Currency Contracts			Net Value of Derivatives		Non-Cash		Cash		Net Amount
Citigroup Global Markets Inc.	$	11,047,077	$	(54,452	)	$	10,992,625	$	—	$	—	$	10,992,625
Goldman Sachs International		11,130,689		(73,111	)		11,057,578		—		—		11,057,578
Merrill Lynch International		11,063,429		—			11,063,429		—		—		11,063,429
State Street Bank & Trust Co.		7,415,898		(66,651	)		7,349,247		—		—		7,349,247
Total	$	40,657,093	$	(194,214	)	$	40,462,879		—		—	$	40,462,879

Effect of Derivative Investments for the year ended October 31, 2017

The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:


	Location of Gain (Loss) on Statement of Operations
	Currency Risk
Realized Gain (Loss):
Forward foreign currency contracts	$	(65,805,540	)
Change in Net Unrealized Appreciation:
Forward foreign currency contracts		26,168,084
Total	$	(39,637,456	)

The table below summarizes the average notional value of forward foreign currency contracts outstanding during the period.

Forward

Foreign Currency
Contracts

Average notional value

932,585,393

NOTE 5—Investments in Other Affiliates

The 1940 Act defines an “affiliated person” as an issuance in which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The following is a summary of the investments in other affiliates (excluding affiliated money market funds) for the year ended October 31, 2017.

Value

10/31/16

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation

Realized
Gain

Value

10/31/17

Dividend
Income

Flowserve Corp.

243,325,101

80,528,736

—

7,201,766

—

331,055,603

5,265,041

NOTE 6—Expense Offset Arrangement(s)

19 Invesco Diversified Dividend Fund

NOTE 7—Trustees’ and Officers’ Fees and Benefits

NOTE 8—Cash Balances

NOTE 9—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2017 and 2016:


	2017		2016
Ordinary income	$	409,455,077	$	267,023,011
Long-term capital gain		489,019,283		459,148,833
Total distributions	$	898,474,360	$	726,171,844

Tax Components of Net Assets at Period-End:


	2017
Undistributed ordinary income	$	105,276,934
Undistributed long-term gain		170,862,617
Net unrealized appreciation — investments		4,695,026,788
Net unrealized appreciation (depreciation) — foreign currencies		(174,202	)
Temporary book/tax differences		(930,338	)
Shares of beneficial interest		18,849,182,518
Total net assets	$	23,819,244,317

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to forward foreign currency contracts and wash sales.

The Fund does not have a capital loss carryforward as of October 31, 2017.

NOTE 10—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2017 was $4,904,489,197 and $1,520,904,785, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	4,892,518,905
Aggregate unrealized (depreciation) of investments		(197,492,117	)
Net unrealized appreciation of investments	$	4,695,026,788

Cost of investments for tax purposes is $19,175,982,137.

20 Invesco Diversified Dividend Fund

NOTE 11—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of foreign currency transactions, on October 31, 2017, undistributed net investment income was decrease by $704,756 and undistributed net realized gain was increased by $704,756. This reclassification had no effect on the net assets of the Fund.

NOTE 12—Share Information


	Summary of Share Activity
	Years ended October 31,
	2017^(a)						2016
	Shares			Amount			Shares			Amount
Sold:
Class A		74,830,049		$	1,469,085,962			108,979,405		$	2,005,788,792
Class B		53,228			1,029,356			151,159			2,737,031
Class C		12,129,887			235,075,117			23,552,942			427,973,231
Class R		9,917,689			196,514,334			6,720,938			124,503,593
Class Y		214,593,938			4,224,691,102			167,451,174			3,100,807,223
Investor Class		5,057,606			99,030,821			13,026,207			240,459,190
Class R5		50,291,041			985,430,188			70,801,603			1,300,534,108
Class R6		203,344,265			4,030,093,052			106,486,741			1,989,408,864

Issued as reinvestment of dividends:
Class A		12,344,710			240,902,638			13,066,538			230,265,852
Class B		25,244			485,276			58,325			1,007,338
Class C		1,345,778			25,875,317			1,259,068			21,799,540
Class R		538,188			10,541,545			616,089			10,841,357
Class Y		8,930,366			174,828,820			4,198,659			74,674,258
Investor Class		4,310,879			84,051,057			6,012,378			105,660,767
Class R5		7,966,357			155,655,406			7,939,892			140,140,576
Class R6		7,642,194			149,715,670			3,528,232			62,800,636

Automatic conversion of Class B shares to Class A shares:
Class A		343,370			6,781,802			327,801			6,042,821
Class B		(347,375	)		(6,781,802	)		(331,527	)		(6,042,821	)

Reacquired:
Class A		(106,628,670	)		(2,104,350,344	)		(55,515,159	)		(1,024,203,766	)
Class B		(151,421	)		(2,936,078	)		(231,547	)		(4,186,791	)
Class C		(13,191,725	)		(256,936,143	)		(6,658,102	)		(121,313,335	)
Class R		(5,332,458	)		(105,816,763	)		(5,633,746	)		(101,801,225	)
Class Y		(206,476,128	)		(4,096,071,214	)		(39,830,247	)		(736,098,973	)
Investor Class		(16,949,114	)		(333,533,496	)		(13,325,518	)		(244,360,026	)
Class R5		(48,840,360	)		(964,528,959	)		(24,574,635	)		(450,235,872	)
Class R6		(35,840,069	)		(709,191,056	)		(16,074,584	)		(292,875,200	)
Net increase in share activity		179,907,469		$	3,509,641,608			372,002,086		$	6,864,327,168

^(a)

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 46% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

21 Invesco Diversified Dividend Fund

NOTE 13—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.


	Net asset value, beginning of period		Net investment income^(a)		Net gains on securities (both realized and unrealized)		Total from investment operations		Dividends from net investment income			Distributions from net realized gains			Total distributions			Net asset value, end of period		Total return^(b)			Net assets, end of period (000’s omitted)		Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed			Ratio of net investment income to average net assets			Portfolio turnover^(c)
Class A
Year ended 10/31/17	$	18.83	$	0.37	$	1.79	$	2.16	$	(0.34	)	$	(0.47	)	$	(0.81	)	$	20.18		11.65	%	$	6,029,664		0.80	%^(d)		0.82	%^(d)		1.85	%^(d)		8	%
Year ended 10/31/16		18.78		0.33		0.76		1.09		(0.31	)		(0.73	)		(1.04	)		18.83		6.27			5,985,548		0.80			0.82			1.79			11
Year ended 10/31/15		18.17		0.30		0.95		1.25		(0.28	)		(0.36	)		(0.64	)		18.78		7.09			4,715,635		0.82			0.83			1.63			11
Year ended 10/31/14		16.52		0.28		1.78		2.06		(0.25	)		(0.16	)		(0.41	)		18.17		12.68			4,206,935		0.83			0.84			1.59			6
Year ended 10/31/13		13.54		0.25		3.20		3.45		(0.26	)		(0.21	)		(0.47	)		16.52		26.07			3,700,473		0.86			0.87			1.65			9
Class B
Year ended 10/31/17		18.61		0.21		1.78		1.99		(0.19	)		(0.47	)		(0.66	)		19.94		10.83			9,092		1.55	^(d)		1.57	^(d)		1.10	^(d)		8
Year ended 10/31/16		18.58		0.19		0.74		0.93		(0.17	)		(0.73	)		(0.90	)		18.61		5.41			16,309		1.55			1.57			1.04			11
Year ended 10/31/15		17.97		0.16		0.95		1.11		(0.14	)		(0.36	)		(0.50	)		18.58		6.35			22,845		1.57			1.58			0.88			11
Year ended 10/31/14		16.35		0.14		1.76		1.90		(0.12	)		(0.16	)		(0.28	)		17.97		11.77			29,691		1.58			1.59			0.84			6
Year ended 10/31/13		13.40		0.13		3.17		3.30		(0.14	)		(0.21	)		(0.35	)		16.35		25.16			35,912		1.61			1.62			0.90			9
Class C
Year ended 10/31/17		18.59		0.21		1.77		1.98		(0.18	)		(0.47	)		(0.65	)		19.92		10.84			840,125		1.55	^(d)		1.57	^(d)		1.10	^(d)		8
Year ended 10/31/16		18.56		0.19		0.74		0.93		(0.17	)		(0.73	)		(0.90	)		18.59		5.41			778,829		1.55			1.57			1.04			11
Year ended 10/31/15		17.95		0.16		0.95		1.11		(0.14	)		(0.36	)		(0.50	)		18.56		6.36			440,482		1.57			1.58			0.88			11
Year ended 10/31/14		16.33		0.14		1.76		1.90		(0.12	)		(0.16	)		(0.28	)		17.95		11.79			348,340		1.58			1.59			0.84			6
Year ended 10/31/13		13.38		0.13		3.17		3.30		(0.14	)		(0.21	)		(0.35	)		16.33		25.19			276,653		1.61			1.62			0.90			9
Class R
Year ended 10/31/17		18.88		0.32		1.80		2.12		(0.29	)		(0.47	)		(0.76	)		20.24		11.40			358,418		1.05	^(d)		1.07	^(d)		1.60	^(d)		8
Year ended 10/31/16		18.84		0.28		0.75		1.03		(0.26	)		(0.73	)		(0.99	)		18.88		5.93			237,638		1.05			1.07			1.54			11
Year ended 10/31/15		18.22		0.26		0.96		1.22		(0.24	)		(0.36	)		(0.60	)		18.84		6.87			204,956		1.07			1.08			1.38			11
Year ended 10/31/14		16.57		0.23		1.79		2.02		(0.21	)		(0.16	)		(0.37	)		18.22		12.36			138,078		1.08			1.09			1.34			6
Year ended 10/31/13		13.58		0.22		3.20		3.42		(0.22	)		(0.21	)		(0.43	)		16.57		25.77			109,444		1.11			1.12			1.40			9
Class Y
Year ended 10/31/17		18.85		0.42		1.79		2.21		(0.39	)		(0.47	)		(0.86	)		20.20		11.93			4,278,325		0.55	^(d)		0.57	^(d)		2.10	^(d)		8
Year ended 10/31/16		18.80		0.38		0.75		1.13		(0.35	)		(0.73	)		(1.08	)		18.85		6.53			3,670,662		0.55			0.57			2.04			11
Year ended 10/31/15		18.19		0.35		0.95		1.30		(0.33	)		(0.36	)		(0.69	)		18.80		7.36			1,183,312		0.57			0.58			1.88			11
Year ended 10/31/14		16.54		0.32		1.79		2.11		(0.30	)		(0.16	)		(0.46	)		18.19		12.95			841,750		0.58			0.59			1.84			6
Year ended 10/31/13		13.56		0.29		3.19		3.48		(0.29	)		(0.21	)		(0.50	)		16.54		26.35			485,248		0.61			0.62			1.90			9
Investor Class
Year ended 10/31/17		18.81		0.37		1.79		2.16		(0.34	)		(0.47	)		(0.81	)		20.16		11.69	^(e)		2,113,750		0.75	^(d)(e)		0.77	^(d)(e)		1.90	^(d)(e)		8
Year ended 10/31/16		18.77		0.33		0.76		1.09		(0.32	)		(0.73	)		(1.05	)		18.81		6.29	^(e)		2,114,404		0.76	^(e)		0.78	^(e)		1.83	^(e)		11
Year ended 10/31/15		18.16		0.31		0.96		1.27		(0.30	)		(0.36	)		(0.66	)		18.77		7.16	^(e)		2,002,938		0.80	^(e)		0.81	^(e)		1.65	^(e)		11
Year ended 10/31/14		16.51		0.29		1.78		2.07		(0.26	)		(0.16	)		(0.42	)		18.16		12.70	^(e)		1,972,400		0.76	^(e)		0.77	^(e)		1.66	^(e)		6
Year ended 10/31/13		13.53		0.25		3.20		3.45		(0.26	)		(0.21	)		(0.47	)		16.51		26.11			1,910,866		0.86			0.87			1.64			9
Class R5
Year ended 10/31/17		18.83		0.43		1.79		2.22		(0.40	)		(0.47	)		(0.87	)		20.18		11.99			3,845,848		0.49	^(d)		0.51	^(d)		2.16	^(d)		8
Year ended 10/31/16		18.78		0.39		0.76		1.15		(0.37	)		(0.73	)		(1.10	)		18.83		6.59			3,410,571		0.50			0.52			2.09			11
Year ended 10/31/15		18.17		0.36		0.95		1.31		(0.34	)		(0.36	)		(0.70	)		18.78		7.41			2,385,096		0.53			0.54			1.92			11
Year ended 10/31/14		16.52		0.33		1.78		2.11		(0.30	)		(0.16	)		(0.46	)		18.17		12.99			1,947,461		0.54			0.55			1.88			6
Year ended 10/31/13		13.54		0.29		3.20		3.49		(0.30	)		(0.21	)		(0.51	)		16.52		26.47			1,408,407		0.57			0.58			1.94			9
Class R6
Year ended 10/31/17		18.83		0.45		1.79		2.24		(0.41	)		(0.47	)		(0.88	)		20.19		12.15			6,344,022		0.39	^(d)		0.41	^(d)		2.26	^(d)		8
Year ended 10/31/16		18.79		0.41		0.74		1.15		(0.38	)		(0.73	)		(1.11	)		18.83		6.63			2,620,298		0.40			0.42			2.19			11
Year ended 10/31/15		18.17		0.37		0.97		1.34		(0.36	)		(0.36	)		(0.72	)		18.79		7.57			849,176		0.43			0.44			2.02			11
Year ended 10/31/14		16.52		0.35		1.78		2.13		(0.32	)		(0.16	)		(0.48	)		18.17		13.10			937,485		0.44			0.45			1.98			6
Year ended 10/31/13		13.54		0.31		3.19		3.50		(0.31	)		(0.21	)		(0.52	)		16.52		26.56			535,077		0.48			0.49			2.03			9

^(a)	Calculated using average shares outstanding.

^(b)

^(c)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)	Ratios are based on average daily net assets (000’s omitted) of $6,168,987, $13,028, $852,762, $303,611, $5,062,000, $2,165,646, $3,818,614 and $4,014,625 for Class A, Class B, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6 shares, respectively.

^(e)	The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees 0.20%, 0.21%, 0.23% and 0.18% for the years ended October 31, 2017, 2016, 2015 and 2014, respectively.

NOTE 14—Subsequent Event

22 Invesco Diversified Dividend Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Equity Funds (Invesco Equity Funds)

and Shareholders of Invesco Diversified Dividend Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Diversified Dividend Fund (one of the portfolios constituting the AIM Equity Funds (Invesco Equity Funds), hereafter referred to as the “Fund”) as of October 31, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of October 31, 2017 by correspondence with the custodian, transfer agent and brokers, and when replies were not received from brokers, we performed other auditing procedures, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Houston, Texas

December 21, 2017

23 Invesco Diversified Dividend Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


Class	Beginning Account Value (05/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
Class	Beginning Account Value (05/01/17)		Ending Account Value (10/31/17)¹		Expenses Paid During Period²		Ending Account Value (10/31/17)		Expenses Paid During Period²		Annualized Expense Ratio
A	$	1,000.00	$	1,030.30	$	4.09	$	1,021.17	$	4.08		0.80	%
B		1,000.00		1,026.20		7.92		1,017.39		7.88		1.55
C		1,000.00		1,026.20		7.92		1,017.39		7.88		1.55
R		1,000.00		1,029.00		5.37		1,019.91		5.35		1.05
Y		1,000.00		1,031.60		2.82		1,022.43		2.80		0.55
Investor		1,000.00		1,030.50		3.94		1,021.32		3.92		0.77
R5		1,000.00		1,031.80		2.51		1,022.74		2.50		0.49
R6		1,000.00		1,032.90		2.05		1,023.19		2.04		0.40

²	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 184/365 to reflect the most recent fiscal half year.

24 Invesco Diversified Dividend Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Equity Funds (Invesco Equity Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco Diversified Dividend Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2017.

The Board’s Fund Evaluation Process

evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable. In addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A.	Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an

existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

B.	Fund Investment Performance

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Large-Cap Value Funds Index. The Board noted that performance of Class A shares of the Fund was in the third quintile of its performance universe for the one year period and the first quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was below the performance of the Index for the one year period and above the performance of the Index for the three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.	Advisory and Sub-Advisory Fees

25 Invesco Diversified Dividend Fund

Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group.

The Board also compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was below the rate of one mutual fund and below the rate of an offshore fund advised by Invesco Advisers using a similar investment process.

that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D.	Economies of Scale and Breakpoints

E.	Profitability and Financial Resources

F.	Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from the Chief Compliance Officer of the

Invesco Funds demonstrating that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

26 Invesco Diversified Dividend Fund

Tax Information

Form 1099-DIV, Form 1042-S and other year–end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.

The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.

The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2017:


Federal and State Income Tax
Long-Term Capital Gain Distributions	$	489,019,283
Qualified Dividend Income*		100	%
Corporate Dividends Received Deduction*		100	%
U.S. Treasury Obligations*		0	%

The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.

27 Invesco Diversified Dividend Fund

Trustees and Officers


Name, Year of Birth and Position(s) Held with the Trust	Trustee and/ or Officer Since	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Directorship(s) Held by Trustee During Past 5 Years
Interested Persons
Martin L. Flanagan¹ — 1960 Trustee	2007	Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Chairman and Chief Executive Officer, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Holding Company (US), Inc. (formerly IVZ Inc.) (holding company), Invesco Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)	158	None
Philip A. Taylor² — 1954 Trustee and Senior Vice President	2006	Head of the Americas and Senior Managing Director, Invesco Ltd.; Director, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.) (financial services holding company); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent); Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); Director, Chairman and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Trustee and Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management). Formerly: Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, Van Kampen Exchange Corp; President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust); Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust only); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent); Director and Chairman, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company), Invesco Canada Holdings Inc. (holding company), Trimark Investments Ltd./Placements Trimark Ltèe and Invesco Financial Services Ltd/Services Financiers Invesco Ltèe; Chief Executive Officer, Invesco Canada Fund Inc. (corporate mutual fund company); Director and Chairman, Van Kampen Investor Services Inc.; Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company) and Van Kampen Investments Inc.; Director and President, AIM GP Canada Inc. (general partner for limited partnerships) and Van Kampen Advisors, Inc.; Director and Chief Executive Officer, Invesco Trimark Dealer Inc. (registered broker dealer); Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), and Short-Term Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.	158	None

¹	Mr. Flanagan is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer of the Adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the Adviser.

²	Mr. Taylor is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer and a director of the Adviser.

T-1 Invesco Diversified Dividend Fund

Trustees and Officers—(continued)


Name, Year of Birth and Position(s) Held with the Trust	Trustee and/ or Officer Since	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Directorship(s) Held by Trustee During Past 5 Years
Independent Trustees
Bruce L. Crockett — 1944 Trustee and Chair	1993	Chairman, Crockett Technologies Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer, COMSAT Corporation; Chairman, Board of Governors of INTELSAT (international communications company); ACE Limited (insurance company); Independent Directors Council and Investment Company Institute: Member of the Audit Committee, Investment Company Institute; Member of the Executive Committee and Chair of the Governance Committee, Independent Directors Council	158	Director and Chairman of the Audit Committee, ALPS (Attorneys Liability Protection Society) (insurance company); Director and Member of the Audit Committee, Ferroglobe PLC (metallurgical company)
David C. Arch — 1945 Trustee	2010	Chairman of Blistex Inc. (consumer health care products manufacturer); Member, World Presidents’ Organization	158	Board member of the Illinois Manufacturers’ Association
James T. Bunch — 1942 Trustee	2003	Managing Member, Grumman Hill Group LLC (family office/private equity investments) Formerly: Chairman of the Board, Denver Film Society; Chairman of the Board of Trustees, Evans Scholarship Foundation; Chairman, Board of Governors, Western Golf Association	158	Trustee, Evans Scholarship Foundation
Jack M. Fields — 1952 Trustee	1997	Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Discovery Learning Alliance (non-profit) Formerly: Owner and Chief Executive Officer, Dos Angeles Ranch L.P. (cattle, hunting, corporate entertainment); Director, Insperity, Inc. (formerly known as Administaff) (human resources provider); Chief Executive Officer, Texana Timber LP (sustainable forestry company); Director of Cross Timbers Quail Research Ranch (non-profit); and member of the U.S. House of Representatives	158	None
Cynthia Hostetler — 1962 Trustee	2017	Non-Executive Director and Trustee of a number of public and private business corporations Formerly: Head of Investment Funds and Private Equity, Overseas Private Investment Corporation; President, First Manhattan Bancorporation, Inc.; Attorney, Simpson Thacher & Bartlett LLP	158	Vulcan Materials Company (construction materials company); Trilinc Global Impact Fund; Aberdeen Investment Funds (4 portfolios); Artio Global Investment LLC (mutual fund complex); Edgen Group, Inc. (specialized energy and infrastructure products distributor)
Eli Jones — 1961 Trustee	2016	Professor and Dean, Mays Business School — Texas A&M University Formerly: Professor and Dean, Walton College of Business, University of Arkansas and E.J. Ourso College of Business, Louisiana State University; Director, Arvest Bank	158	Insperity, Inc. (formerly known as Administaff) (human resources provider)
Prema Mathai-Davis — 1950 Trustee	1998	Retired. Formerly: Chief Executive Officer, YWCA of the U.S.A.	158	None
Teresa M. Ressel — 1962 Trustee	2017	Non-executive director and trustee of a number of public and private business corporations Formerly: Chief Financial Officer, Olayan America, The Olayan Group (international investor/commercial/industrial); Chief Executive Officer, UBS Securities LLC; Group Chief Operating Officer, Americas, UBS AG; Assistant Secretary for Management & Budget and CFO, US Department of the Treasury; Chief Compliance Officer, Kaiser Permanente (healthcare consortium); Program Manager, Hewlett-Packard; Nuclear Engineering, General Dynamics Corporation (aerospace and defense company)	158	Atlantic Power Corporation (power generation company); ON Semiconductor Corp. (semiconductor supplier)
Larry Soll — 1942 Trustee	2003	Retired. Formerly: Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)	158	None
Ann Barnett Stern — 1957 Trustee	2017	President and Chief Executive Officer, Houston Endowment Inc. (private philanthropic institution) Formerly: Executive Vice President and General Counsel, Texas Children’s Hospital; Attorney, Beck, Redden and Secrest, LLP; Business Law Instructor, University of St. Thomas; Attorney, Andrews & Kurth LLP	158	Federal Reserve Bank of Dallas
Raymond Stickel, Jr. — 1944 Trustee	2005	Retired. Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios); Partner, Deloitte & Touche	158	None
Robert C. Troccoli — 1949 Trustee	2016	Adjunct Professor, University of Denver — Daniels College of Business Formerly: Senior Partner, KPMG LLP	158	None

T-2 Invesco Diversified Dividend Fund

Trustees and Officers—(continued)


Name, Year of Birth and Position(s) Held with the Trust	Trustee and/ or Officer Since	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Directorship(s) Held by Trustee During Past 5 Years
Independent Trustees—(continued)
Christopher L. Wilson — 1957 Trustee	2017	Managing Partner, CT2, LLC (investing and consulting firm) Formerly: President/Chief Executive Officer, Columbia Funds, Bank of America Corporation; President/Chief Executive Officer, CDC IXIS Asset Management Services, Inc.; Principal & Director of Operations, Scudder Funds, Scudder, Stevens & Clark, Inc.; Assistant Vice President, Fidelity Investments	158	TD Asset Management USA Inc. (mutual fund complex) (22 portfolios); ISO New England, Inc. (non-profit organization managing regional electricity market)
Other Officers
Sheri Morris — 1964 President, Principal Executive Officer and Treasurer	1999	President, Principal Executive Officer and Treasurer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust Formerly: Vice President and Principal Financial Officer, The Invesco Funds; Vice President, Invesco Aim Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust	N/A	N/A
Russell C. Burk — 1958 Senior Vice President and Senior Officer	2005	Senior Vice President and Senior Officer, The Invesco Funds	N/A	N/A
John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary	2006	Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Managing Director, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.) and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust; Manager and Secretary, Invesco Indexing LLC Formerly: Director, Secretary, General Counsel and Senior Vice President, Van Kampen Exchange Corp.; Director, Vice President and Secretary, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Director and Vice President, Van Kampen Advisors Inc.; Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; Director, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco AIM Advisers, Inc. and Van Kampen Investments Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco AIM Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)	N/A	N/A
Gregory G. McGreevey — 1962 Senior Vice President	2012	Senior Managing Director, Invesco Ltd.; Director, Chairman, President, and Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President, Invesco Management Group, Inc.; Director, Invesco Mortgage Capital, Inc. and Invesco Senior Secured Management, Inc.; and Senior Vice President, The Invesco Funds Formerly: Assistant Vice President, The Invesco Funds	N/A	N/A

T-3 Invesco Diversified Dividend Fund

Trustees and Officers—(continued)


Name, Year of Birth and Position(s) Held with the Trust	Trustee and/ or Officer Since	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Directorship(s) Held by Trustee During Past 5 Years
Other Officers—(continued)
Kelli Gallegos — 1970 Vice President, Principal Financial Officer and Assistant Treasurer	2008	Vice President, Principal Financial Officer and Assistant Treasurer, The Invesco Funds; Assistant Treasurer, Invesco PowerShares Capital Management LLC, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust Formerly: Assistant Vice President, The Invesco Funds	N/A	N/A
Tracy Sullivan — 1962 Vice President, Chief Tax Officer and Assistant Treasurer	2008	Vice President, Chief Tax Officer and Assistant Treasurer, The Invesco Funds; Assistant Treasurer, Invesco PowerShares Capital Management LLC, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust Formerly: Assistant Vice President, The Invesco Funds	N/A	N/A
Crissie M. Wisdom — 1969 Anti-Money Laundering Compliance Officer	2013	Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser), Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.), Invesco Distributors, Inc., Invesco Investment Services, Inc., Invesco Management Group, Inc., The Invesco Funds, and PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust; Anti-Money Laundering Compliance Officer and Bank Secrecy Act Officer, INVESCO National Trust Company and Invesco Trust Company; and Fraud Prevention Manager and Controls and Risk Analysis Manager for Invesco Investment Services, Inc. Formerly: Anti-Money Laundering Compliance Officer, Van Kampen Exchange Corp.	N/A	N/A
Robert R. Leveille — 1969 Chief Compliance Officer	2016	Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser); and Chief Compliance Officer, The Invesco Funds Formerly: Chief Compliance Officer, Putnam Investments and the Putnam Funds	N/A	N/A

T-4 Invesco Diversified Dividend Fund

Explore High-Conviction Investing with Invesco

LOGO

Go paperless with eDelivery

Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.

With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:

∎

Fund reports and prospectuses

∎

Quarterly statements

∎

Daily confirmations

∎

Tax forms

Invesco mailing information

Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information


SEC file numbers: 811-01424 and 002-25469		Invesco Distributors, Inc.		DDI-AR-1 12112017 1446

LOGO

Letters to Shareholders

LOGO

Philip Taylor

Dear Shareholders:

European Central Bank and central banks in China and Japan, among other countries, to maintain extraordinarily accommodative monetary policies. Citing positive economic trends – specifically, realized and expected labor market conditions and inflation – the US Federal Reserve raised interest rates three times during the reporting period: first in December 2016, and then again in March and June 2017. Health care and tax reform proved to be more difficult than expected to enact, with little progress achieved by the end of the reporting period.

Visit our website for more information on your investments

Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.”

In addition to the resources accessible on our website and through our mobile app, you can obtain timely updates to help you stay informed about the markets and the economy by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com. Our goal is to provide you the information you want, when and where you want it.

Have questions?

For questions about your account, contact an Invesco client services representative at 800 959 4246. For Invesco-related questions or comments, please email me directly at phil@invesco.com.

All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.

Sincerely,

LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

2 Invesco Summit Fund

∎

Assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus.

∎

Monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.

I trust the measures outlined above provide assurance that you have a worthy advocate when it comes to choosing the Invesco Funds.

Sincerely,

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

3 Invesco Summit Fund

Management’s Discussion of Fund Performance

Performance summary

For the fiscal year ended October 31, 2017, Class A shares of Invesco Summit Fund (the Fund), at net asset value (NAV), underperformed the Russell 1000 Growth Index, the Fund’s style-specific benchmark.

Your Fund’s long-term performance appears later in this report.

Fund vs. Indexes


Class A Shares	29.20	%
Class B Shares	28.21
Class C Shares	28.15
Class P Shares	29.32
Class S Shares	29.29
Class Y Shares	29.46
Class R5 Shares	29.56
Class R6 Shares*	29.36
S&P 500 Index^▼(Broad Market Index)	23.63
Russell 1000 Growth Index^▼(Style-Specific Index)	29.71
Lipper Multi-Cap Growth Funds Index^∎ (Peer Group Index)	28.87
Source(s): ^▼FactSet Research Systems Inc.; ^∎Lipper Inc.
*Class R6 shares incepted on April 4, 2017. See page 7 for more information.

Market conditions and your Fund

Despite highly destructive hurricanes that threatened to derail a years-long recovery, the US economy continued to expand throughout the fiscal year ended October 31, 2017. Gross domestic product (GDP) – the value of all goods and services produced in the US – grew by 1.8% in the fourth quarter of 2016, and by 1.2% in the first quarter of 2017 and by 3.1% in the second quarter of 2017.¹ Inflation remained subdued even as the labor market continued to strengthen. Unemployment continued its multiyear decline, hitting just 4.2% in September – a 16-year low.²

Despite the Fed’s actions, major US stock market indexes repeatedly hit alltime highs throughout the reporting period. The stock market rally began immediately following the outcome of the US presidential election in November 2016, based on investors’ hopes for reduced regulation, lowered corporate and personal tax rates and increased infrastructure spending. The stock market rally continued throughout the reporting period, fueled by generally positive economic data, strong corporate earnings and improved consumer

confidence – even as the prospect for health care and tax reform faded somewhat.

In this market environment, the Fund had double-digit positive returns at NAV and performed in line with its style-specific index. On the positive side, relative performance was driven by Fund exposure to the information technology (IT), consumer discretionary and consumer staples sectors. In contrast, underperformance in the health care, energy and telecommunication services sectors detracted from relative returns.

The Fund outperformed its style-specific index by the widest margin in the IT sector, driven by positive stock selection in and overweight exposure to the sector. Video game developer Take-Two Interactive Software posted a strong return and led Fund performance for the reporting period. The company benefited from renewed interest in the company’s “Grand Theft Auto” game, as consumer demand for new downloadable content (DLC) was better than expected. Take-Two was also helped by anticipation for expected new releases in 2018, including, “Red Dead Redemption 2,” “NBA 2K18,” a new title in the Borderlands series and, potentially an NBA 2K eSports league. Alibaba Group, an e-commerce company based in China, was also a leading contributor to relative performance. Alibaba was helped by strength in its core retail segment, driven by increased video and social interaction on the Alibaba platform.

Solid stock selection in the consumer discretionary sector also contributed to the Fund’s relative performance. Retail and e-commerce giant Amazon.com was a leading contributor to Fund performance during the reporting period. After a short pause in the second half of 2016, the company’s stock price rose throughout the reporting period on better-than-expected


Portfolio Composition
By sector				% of total net assets



Information Technology	45.3	%
Consumer Discretionary	20.7
Health Care	11.9
Industrials	7.3
Consumer Staples	5.8
Financials	3.2
Materials	2.0
Energy	1.4
Telecommunication Services	1.2
Real Estate	0.9
Money Market Funds Plus Other Assets Less Liabilities	0.3


Top 10 Equity Holdings*
	% of total net assets

1.	Alphabet Inc.-Class C	6.7	%
2.	Amazon.com, Inc.	6.1
3.	Facebook, Inc.-Class A	6.0
4.	Visa Inc.-Class A	4.5
5.	Apple Inc.	4.1
6.	UnitedHealth Group Inc.	2.9
7.	Alibaba Group Holding Ltd.-ADR	2.9
8.	Electronic Arts Inc.	2.7
9.	Take-Two Interactive Software, Inc.	2.5
10.	Activision Blizzard, Inc.	2.4


Total Net Assets	$	2.1 billion

Total Number of Holdings*		90

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.

*Excluding money market fund holdings.

Data presented here are as of October 31, 2017.

4 Invesco Summit Fund

quarterly results as Amazon continued to take market share in the retail space. The acquisition of Whole Foods also aided the company’s performance. Royal Caribbean Cruises also contributed to performance within the sector. The stock price rose during the fiscal year as cruise bookings and pricing were trending ahead of expectations. The company’s 2018 outlook was also positive, with bookings coming in ahead of expectations. Investors have been generally positive on cruise lines, as many believe the industry has some protection from Amazon.

Stock selection in and underweight exposure to the consumer staples sector contributed to relative Fund performance as well. Underweight exposure to the sector was beneficial as consumer staples was one of the weaker-performing sectors within the style-specific index during the reporting period due to what many investors believed were extended valuations and slow global economic growth. The leading contributor to performance in the consumer staples sector was Lamb Weston, a global supplier of french fries to restaurants and retailers. We added the company in January of this year due to its significant market share in the industry. Lamb Weston has since produced better-than-expected quarterly results and acted as a contributor to Fund performance.

Some of the Fund’s outperformance was offset by the impact of other low-performing sectors. Stock selection in and underweight exposure to the health care sector was a detractor from relative Fund results. Pharmaceutical giant Allergan was the leading detractor in the sector. The company was negatively affected by uncertainty around potential generic competition for its dry eye drug Restasis. Amgen, a biotechnology company, was also a notable detractor from relative performance during the reporting period. The stock declined after the company issued concerning guidance surrounding the durability of its legacy franchises.

Overweight exposure to the energy sector was also a detractor from relative performance. The energy sector was the worst-performing sector in the style-specific index during the reporting period as crude prices declined on concerns over increasing US energy supplies and fears that the OPEC cuts enacted in November 2016 would not be continued after June 2017. Despite OPEC members eventually agreeing to extend the cuts in May of this year that are expected to last through

March 2018, the sector still has yet to fully recover. The Fund’s holdings were not immune to the decline in the sector, as Newfield Exploration and Halliburton were two of the largest detractors from both absolute and relative performance during the reporting period.

We think the traditional business cycle recovery has not fully materialized, as results over the last several years have been mixed, depending on which sector we evaluate. However, it is possible that this is just a very slow normalization, and we believe is some evidence we may yet see a more classic recovery and reacceleration in growth. Given this scenario, we are seeking opportunities in companies that are taking market share within their respective industries. Though we anticipate a possible slowdown in the economy, we continue to prudently balance the Fund between dynamic growth opportunities and more durable growth opportunities.

Thank you for your investment in Invesco Summit Fund and for sharing our long-term investment horizon.

1	Source: Bureau of Economic Analysis

2	Sources: Bureau of Labor Statistics, Bloomberg

3	Source: US Federal Reserve

See important Fund and, if applicable, index disclosures later in this report.

Erik Voss

Chartered Financial Analyst, Portfolio Manager, is lead manager of Invesco Summit Fund. He joined Invesco

in 2010. Mr. Voss earned a BS in mathematics and an MS in finance from the University of Wisconsin.

Ido Cohen

Portfolio Manager, is manager of Invesco Summit Fund. He joined Invesco in 2010. Mr. Cohen earned a BS in

economics from The Wharton School of the University of Pennsylvania.

5 Invesco Summit Fund

Your Fund’s Long-Term Performance

Results of a $10,000 Investment – Oldest Share Class(es)

Fund and index data from 10/31/07

LOGO

Past performance cannot guarantee comparable future results.

The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including management fees. Results for Class B shares are calculated as if a hypothetical

6 Invesco Summit Fund


Average Annual Total Returns
As of 10/31/17, including maximum applicable sales charges

Class A Shares
Inception (10/31/05)	7.94	%
10 Years	6.23
5 Years	15.06
1 Year	22.12

Class B Shares
Inception (10/31/05)	7.92	%
10 Years	6.22
5 Years	15.25
1 Year	23.21

Class C Shares
Inception (10/31/05)	7.63	%
10 Years	6.03
5 Years	15.48
1 Year	27.15

Class P Shares
Inception (11/1/82)	9.57	%
10 Years	7.00
5 Years	16.53
1 Year	29.32

Class S Shares
10 Years	6.93	%
5 Years	16.46
1 Year	29.29

Class Y Shares
10 Years	7.08	%
5 Years	16.62
1 Year	29.46

Class R5 Shares
10 Years	7.18	%
5 Years	16.74
1 Year	29.56

Class R6 Shares
10 Years	6.85	%
5 Years	16.40
1 Year	29.36

Class S shares incepted on September 25, 2009. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.

Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.

Class R5 shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.


Average Annual Total Returns
As of 9/30/17, the most recent calendar quarter end, including maximum applicable sales charges

Class A Shares
Inception (10/31/05)	7.74	%
10 Years	6.21
5 Years	13.74
1 Year	16.27

Class B Shares
Inception (10/31/05)	7.72	%
10 Years	6.19
5 Years	13.92
1 Year	17.10

Class C Shares
Inception (10/31/05)	7.44	%
10 Years	6.01
5 Years	14.18
1 Year	21.11

Class P Shares
Inception (11/1/82)	9.50	%
10 Years	6.97
5 Years	15.20
1 Year	23.20

Class S Shares
10 Years	6.91	%
5 Years	15.15
1 Year	23.18

Class Y Shares
10 Years	7.05	%
5 Years	15.30
1 Year	23.32

Class R5 Shares
10 Years	7.15	%
5 Years	15.41
1 Year	23.30

Class R6 Shares
10 Years	6.83	%
5 Years	15.07
1 Year	23.21

Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise

stated. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class P, Class S, Class Y, Class R5 and Class R6 shares was 1.05%, 1.80%, 1.80%, 0.90%,0.95%, 0.80%, 0.74% and 0.73%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Class A share performance reflects the maximum 5.50% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class P, Class S, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or contingent deferred sales charge (CDSC); therefore, returns shown are at net asset value.

The performance numbers shown do not reflect the creation and sales charges and other fees assessed by the AIM Summit Investors Plans, which were dissolved effective December 8, 2006.

The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

7 Invesco Summit Fund

Invesco Summit Fund’s investment objective is long-term growth of capital.

∎

Unless otherwise stated, information presented in this report is as of October 31, 2017, and is based on total net assets.

∎

Unless otherwise noted, all data provided by Invesco.

∎

To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

About share classes

∎

Class B shares may not be purchased for new or additional investments. Please see the prospectus for more information.

∎

Class P shares, Class S shares and Class Y shares are available only to certain investors. Please see the prospectus for more information.

∎

Class R5 shares and Class R6 shares are available for use by retirement plans that meet certain standards and for institutional investors. Class R6 shares are also available through intermediaries that have established an agreement with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts. Please see the prospectus for more information.

Principal risks of investing in the Fund

∎

Growth investing risk. Growth stocks tend to be more expensive relative to the issuing company’s earnings or assets

compared with other types of stock. As a result, they tend to be more sensitive to changes in, or investors’ expectations of, the issuing company’s earnings and can be more volatile.

∎

Sector focus risk. The Fund may from time to time invest a significant amount of its assets (i.e. over 25%) in one market sector or group of related industries. In this event, the Fund’s performance will depend to a greater extent on the overall condition of the sector or group of industries and there is increased risk that the Fund will lose significant value if conditions adversely affect that sector or group of industries.

∎

more limited product lines and markets, less experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of more established companies, and their returns may vary, sometimes significantly, from the overall securities market.

About indexes used in this report

∎

The S&P 500^® Index is an unmanaged index considered representative of the US stock market.

∎

The Russell 1000^® Growth Index is an unmanaged index considered representative of large-cap growth stocks. The Russell 1000 Growth Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

∎

The Lipper Multi-Cap Growth Funds Index is an unmanaged index considered representative of multicap growth funds tracked by Lipper.

∎

Other information

∎


This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.

NOT FDIC INSURED \| MAY LOSE VALUE \| NO BANK GUARANTEE

8 Invesco Summit Fund

Schedule of Investments^(a)

October 31, 2017


	Shares		Value
Common Stocks & Other Equity Interests–99.72%
Aerospace & Defense–3.35%
Northrop Grumman Corp.		57,617	$	17,027,552
Raytheon Co.		156,002		28,111,561
Teledyne Technologies Inc.^(b)		158,144		26,878,154
				72,017,267

Airlines–0.56%
Alaska Air Group, Inc.		181,912		12,011,649

Application Software–1.80%
salesforce.com, inc.^(b)		377,385		38,621,581

Biotechnology–4.07%
Alexion Pharmaceuticals, Inc.^(b)		225,201		26,947,552
Amgen Inc.		28,071		4,918,601
Celgene Corp.^(b)		461,122		46,559,488
Incyte Corp.^(b)		80,401		9,105,413
				87,531,054

Cable & Satellite–3.26%
Altice USA, Inc.–Class A^(b)(c)		353,640		8,374,195
Charter Communications, Inc.–Class A^(b)		80,715		26,972,532
Comcast Corp.–Class A		267,907		9,652,689
DISH Network Corp.–Class A^(b)		517,844		25,136,148
				70,135,564

Coal & Consumable Fuels–0.57%
Peabody Energy Corp.^(b)		396,232		12,239,606

Commodity Chemicals–0.63%
Westlake Chemical Corp.		158,418		13,451,272

Consumer Electronics–1.86%
Sony Corp. (Japan)		920,400		40,073,319

Data Processing & Outsourced Services–6.05%
Mastercard Inc.–Class A		141,197		21,005,878
Vantiv, Inc.–Class A^(b)		176,581		12,360,670
Visa Inc.–Class A		879,195		96,693,866
				130,060,414

Diversified Banks–0.43%
Bank of America Corp.		339,649		9,302,986

Electronic Equipment & Instruments–0.62%
Keysight Technologies, Inc.^(b)		299,726		13,388,760

Environmental & Facilities Services–1.51%
Waste Connections, Inc. (Canada)		213,032		15,054,971
Waste Management, Inc.		212,044		17,423,656
				32,478,627

Financial Exchanges & Data–1.42%
Intercontinental Exchange, Inc.		310,765		20,541,566


	Shares		Value
Financial Exchanges & Data–(continued)
London Stock Exchange Group PLC (United Kingdom)		141,068	$	7,047,916
S&P Global Inc.		18,898		2,956,970
				30,546,452

Health Care Equipment–1.56%
Boston Scientific Corp.^(b)		666,982		18,768,873
Intuitive Surgical, Inc.^(b)		39,066		14,663,814
				33,432,687

Home Entertainment Software–9.42%
Activision Blizzard, Inc.		793,268		51,951,121
Electronic Arts Inc.^(b)		483,533		57,830,547
Nintendo Co., Ltd. (Japan)		100,900		39,303,645
Take-Two Interactive Software, Inc.^(b)		482,911		53,434,102
				202,519,415

Home Improvement Retail–3.31%
Home Depot, Inc. (The)		177,458		29,418,987
Lowe’s Cos., Inc.		520,491		41,613,256
				71,032,243

Hotels, Resorts & Cruise Lines–2.56%
Norwegian Cruise Line Holdings Ltd.^(b)		623,363		34,752,487
Royal Caribbean Cruises Ltd.		163,310		20,212,879
				54,965,366

Housewares & Specialties–0.62%
Newell Brands, Inc.		325,260		13,264,103

Industrial Gases–0.36%
Praxair, Inc.		52,380		7,653,766

Industrial Machinery–0.44%
Stanley Black & Decker Inc.		58,653		9,475,392

Internet & Direct Marketing Retail–7.88%
Amazon.com, Inc.^(b)		118,569		131,051,944
Netflix Inc.^(b)		38,042		7,472,590
Priceline Group Inc. (The)^(b)		16,113		30,807,412
				169,331,946

Internet Software & Services–16.61%
Alibaba Group Holding Ltd.–ADR (China)^(b)		331,772		61,341,325
Alphabet Inc.–Class A^(b)		10,830		11,187,823
Alphabet Inc.–Class C^(b)		142,541		144,912,882
Facebook, Inc.–Class A^(b)		715,941		128,912,337
Sea Ltd.–ADR (Singapore)^(b)(c)		698,416		10,532,113
				356,886,480

Investment Banking & Brokerage–1.10%
Charles Schwab Corp. (The)		23,440		1,051,049
E*TRADE Financial Corp.^(b)		434,730		18,949,881
Lazard Ltd.–Class A		74,170		3,526,042
				23,526,972

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

9 Invesco Summit Fund


	Shares		Value
Life Sciences Tools & Services–1.07%
PRA Health Sciences, Inc.^(b)		125,220	$	10,196,665
Thermo Fisher Scientific, Inc.		65,647		12,724,358
				22,921,023

Managed Health Care–2.86%
UnitedHealth Group Inc.		292,455		61,479,890

Movies & Entertainment–0.40%
IMAX Corp.^(b)		358,095		8,683,804

Oil & Gas Equipment & Services–0.01%
Halliburton Co.		5,049		215,794

Oil & Gas Exploration & Production–0.77%
Cimarex Energy Co.		41,611		4,865,574
Newfield Exploration Co.^(b)		72,048		2,218,358
Parsley Energy, Inc.–Class A^(b)		347,053		9,231,610
Pioneer Natural Resources Co.		1,472		220,314
				16,535,856

Packaged Foods & Meats–4.76%
Blue Buffalo Pet Products, Inc.^(b)		460,672		13,327,241
Lamb Weston Holdings, Inc.		302,230		15,410,708
Marine Harvest ASA (Norway)		1,036,566		20,240,721
Mondelez International, Inc.–Class A		329,087		13,634,074
Pinnacle Foods Inc.		128,184		6,975,773
Tyson Foods, Inc.–Class A		448,076		32,669,221
				102,257,738

Personal Products–0.26%
Estee Lauder Cos. Inc. (The)–Class A		20,703		2,314,803
Unilever N.V. (United Kingdom)		54,417		3,163,496
				5,478,299

Pharmaceuticals–2.33%
Allergan PLC		140,857		24,964,086
Zoetis Inc.		394,865		25,200,284
				50,164,370

Regional Banks–0.29%
SVB Financial Group^(b)		28,856		6,327,544

Research & Consulting Services–0.21%
Equifax Inc.		42,492		4,611,657

Restaurants–0.13%
Papa John’s International, Inc.		39,881		2,713,902

Semiconductor Equipment–0.63%
Applied Materials, Inc.		106,259		5,996,195
ASML Holding N.V.–New York Shares (Netherlands)		42,132		7,615,359
				13,611,554

Semiconductors–3.98%
Broadcom Ltd.		193,294		51,012,219
Integrated Device Technology, Inc.^(b)		843,999		26,223,049


	Shares		Value
Semiconductors–(continued)
NVIDIA Corp.		39,991	$	8,270,539
				85,505,807

Soft Drinks–0.76%
Monster Beverage Corp.^(b)		274,151		15,881,567
PepsiCo, Inc.		3,803		419,205
				16,300,772

Specialized Consumer Services–0.49%
Service Corp. International		299,499		10,620,235

Specialized REIT’s–0.87%
Crown Castle International Corp.		102,790		11,006,753
SBA Communications Corp.–Class A^(b)		49,449		7,772,394
				18,779,147

Specialty Chemicals–1.04%
Sherwin-Williams Co. (The)		56,372		22,275,396

Specialty Stores–0.20%
National Vision Holdings, Inc.^(b)		148,553		4,278,326

Systems Software–2.13%
Microsoft Corp.		439,244		36,536,316
ServiceNow, Inc.^(b)		72,225		9,127,073
				45,663,389

Technology Hardware, Storage & Peripherals–4.08%
Apple Inc.		519,167		87,759,990

Trading Companies & Distributors–1.27%
Watsco, Inc.		164,038		27,323,810

Wireless Telecommunication Services–1.19%
Sprint Corp.^(b)		3,594,179		23,505,930
T-Mobile US, Inc.^(b)		34,897		2,085,794
				25,591,724
Total Common Stocks & Other Equity Interests (Cost $1,186,838,204)				2,143,046,948

Money Market Funds–0.03%
Invesco Government & Agency Portfolio–Institutional Class, 0.95%^(d)		355,676		355,676
Invesco Treasury Portfolio–Institutional Class, 0.94%^(d)		237,118		237,118
Total Money Market Funds (Cost $592,794)				592,794
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)–99.75% (Cost $1,187,430,998)				2,143,639,742

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

10 Invesco Summit Fund


	Shares		Value
Money Market Fund–0.46%
Invesco Government & Agency Portfolio– Institutional Class, 0.95% (Cost $9,909,467)^(d)(e)		9,909,467	$	9,909,467
TOTAL INVESTMENTS IN SECURITIES–100.21% (Cost $1,197,340,465)				2,153,549,209
OTHER ASSETS LESS LIABILITIES–(0.21)%				(4,503,870	)
NET ASSETS–100.00%			$	2,149,045,339

Investment Abbreviations:


ADR		– American Depositary Receipt
REIT		– Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)	Non-income producing security.

^(c)	All or a portion of this security was out on loan at October 31, 2017.

^(d)	The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of October 31, 2017.

^(e)	The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

11 Invesco Summit Fund

Statement of Assets and Liabilities

October 31, 2017


Assets:
Investments in securities, at value (Cost $1,186,838,204)*	$	2,143,046,948
Investments in affiliated money market funds, at value and cost		10,502,261
Receivable for:
Investments sold		5,318,659
Fund shares sold		415,868
Dividends		475,889
Investment for trustee deferred compensation and retirement plans		422,919
Other assets		93,846
Total assets		2,160,276,390

Liabilities:
Payable for:
Collateral upon return of securities loaned		9,909,467
Fund shares reacquired		290,039
Accrued fees to affiliates		534,766
Accrued trustees’ and officers’ fees and benefits		4,839
Accrued other operating expenses		21,971
Trustee deferred compensation and retirement plans		469,969
Total liabilities		11,231,051
Net assets applicable to shares outstanding	$	2,149,045,339

Net assets consist of:
Shares of beneficial interest	$	1,119,832,965
Undistributed net investment income		(204,399	)
Undistributed net realized gain		73,209,615
Net unrealized appreciation		956,207,158
	$	2,149,045,339


Net Assets:
Class A	$	77,519,135
Class B	$	347,085
Class C	$	9,324,602
Class P	$	2,044,420,856
Class S	$	3,521,093
Class Y	$	13,880,685
Class R5	$	20,282
Class R6	$	11,601

Shares outstanding, no par value, with an unlimited number of shares authorized:
Class A		3,849,923
Class B		18,789
Class C		506,386
Class P		100,259,350
Class S		173,926
Class Y		682,340
Class R5		993
Class R6		568
Class A:
Net asset value per share	$	20.14
Maximum offering price per share
(Net asset value of $20.14 ¸ 94.50%)	$	21.31
Class B:
Net asset value and offering price per share	$	18.47
Class C:
Net asset value and offering price per share	$	18.41
Class P:
Net asset value and offering price per share	$	20.39
Class S:
Net asset value and offering price per share	$	20.24
Class Y:
Net asset value and offering price per share	$	20.34
Class R5:
Net asset value and offering price per share	$	20.42
Class R6:
Net asset value and offering price per share	$	20.42

*	At October 31, 2017, securities with an aggregate value of $7,942,854 were on loan to brokers.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

12 Invesco Summit Fund

Statement of Operations

For the year ended October 31, 2017


Investment income:
Dividends (net of foreign withholding taxes of $102,147)	$	17,784,601
Dividends from affiliated money market funds (includes securities lending income of $36,411)		65,642
Total investment income		17,850,243

Expenses:
Advisory fees		12,425,454
Administrative services fees		436,920
Custodian fees		69,122
Distribution fees:
Class A		151,447
Class B		3,384
Class C		65,641
Class P		1,875,233
Class S		5,161
Transfer agent fees — A, B, C, P, S and Y		2,120,164
Transfer agent fees — R5		13
Transfer agent fees — R6		5
Trustees’ and officers’ fees and benefits		51,953
Registration and filing fees		120,988
Reports to shareholders		205,943
Professional services fees		63,119
Other		38,915
Total expenses		17,633,462
Less: Fees waived and expense offset arrangement(s)		(54,224	)
Net expenses		17,579,238
Net investment income		271,005

Realized and unrealized gain from:
Net realized gain from:
Investment securities (includes net gains (losses) from securities sold to affiliates of $(47,186))		75,431,586
Foreign currencies		15,698
		75,447,284
Change in net unrealized appreciation of:
Investment securities		426,300,052
Foreign currencies		3,243
		426,303,295
Net realized and unrealized gain		501,750,579
Net increase in net assets resulting from operations	$	502,021,584

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

13 Invesco Summit Fund

Statement of Changes in Net Assets

For the years ended October 31, 2017 and 2016


	2017			2016
Operations:
Net investment income	$	271,005		$	1,605,230
Net realized gain		75,447,284			104,976,732
Change in net unrealized appreciation (depreciation)		426,303,295			(94,175,179	)
Net increase in net assets resulting from operations		502,021,584			12,406,783

Distributions to shareholders from net investment income:
Class P		(1,095,288	)		—
Class S		(455	)		—
Class Y		(6,596	)		—
Class R5		(38	)		—
Total distributions from net investment income		(1,102,377	)		—

Distributions to shareholders from net realized gains:
Class A		(3,020,626	)		(3,614,176	)
Class B		(17,091	)		(41,771	)
Class C		(305,415	)		(383,143	)
Class P		(101,344,615	)		(115,878,847	)
Class S		(189,501	)		(227,949	)
Class Y		(238,831	)		(155,911	)
Class R5		(993	)		(1,127	)
Total distributions from net realized gains		(105,117,072	)		(120,302,924	)

Share transactions–net:
Class A		14,871,919			3,485,315
Class B		3,229			(227,529	)
Class C		3,074,179			644,565
Class P		(44,084,588	)		(9,421,646	)
Class S		(334,883	)		(151,816	)
Class Y		8,572,792			1,461,091
Class R6		10,005			—
Net increase (decrease) in net assets resulting from share transactions		(17,887,347	)		(4,210,020	)
Net increase (decrease) in net assets		377,914,788			(112,106,161	)

Net assets:
Beginning of year		1,771,130,551			1,883,236,712
End of year (includes undistributed net investment income of $(204,399) and $613,834, respectively)	$	2,149,045,339		$	1,771,130,551

Notes to Financial Statements

October 31, 2017

NOTE 1—Significant Accounting Policies

Invesco Summit Fund (the “Fund”) is a series portfolio of AIM Equity Funds (Invesco Equity Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of three separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

The Fund’s investment objective is long-term growth of capital.

The Fund currently consists of eight different classes of shares: Class A, Class B, Class C, Class P, Class S, Class Y, Class R5 and Class R6. On April 4, 2017, the Fund began offering Class R6 shares. Class P shares are not sold to members of the general public. Only shareholders who had accounts in the AIM Summit Investors Plans I and AIM Summit Investors Plans II at the close of business on December 8, 2006, may continue to purchase Class P shares as described in the Fund’s prospectus. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waiver shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class P, Class S, Class Y, Class R5 and Class R6 shares are sold at net asset

14 Invesco Summit Fund

value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert to Class A shares. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert to Class A shares. Generally, Class B shares will automatically convert to Class A shares on or about the month-end, which is at least eight years after the date of purchase. Redemption of Class B shares prior to the conversion date will be subject to a CDSC.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.

15 Invesco Summit Fund

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

D.	Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

16 Invesco Summit Fund

K.	Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates


Average Daily Net Assets	Rate
First $10 million		1	.00%
Next $140 million		0	.75%
Over $150 million		0	.625%

For the year ended October 31, 2017, the effective advisory fees incurred by the Fund was 0.64%.

The Adviser has contractually agreed, through at least June 30, 2018, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class B, Class C, Class P, Class S, Class Y, Class R5 and Class R6 shares to 2.00%, 2.75%, 2.75%, 1.85%, 1.90%, 1.75%, 1.75% and 1.75%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

For the year ended October 31, 2017, the Adviser waived advisory fees of $8,615.

17 Invesco Summit Fund

The Fund has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class B, Class C, Class P, Class S, Class Y, Class R5 and Class R6 shares. The Fund has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B, Class C shares, Class P shares and Class S shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class B and Class C shares, 0.10% of the average daily net assets of Class P shares and 0.15% of the average daily net assets of Class S shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of Class A, Class B and Class C shares, 0.10% of the average daily net assets of Class P shares and 0.15% of the average daily net assets of Class S shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2017, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2017, IDI advised the Fund that IDI retained $48,341 in front-end sales commissions from the sale of Class A shares and $1,098, $37 and $64 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

For the year ended October 31, 2017, the Fund incurred $15,605 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.

NOTE 3—Additional Valuation Information

Level 1 —

Prices are determined using quoted prices in an active market for identical assets.

Level 2 —

Level 3 —

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period.

During the year ended October 31, 2017, there were no material transfers between valuation levels.


	Level 1		Level 2		Level 3		Total
Common Stocks & Other Equity Interests	$	2,063,669,984	$	79,376,964	$	—	$	2,143,046,948
Money Market Funds		10,502,261		—		—		10,502,261
Total Investments	$	2,074,172,245	$	79,376,964	$	—	$	2,153,549,209

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the year ended October 31, 2017, the Fund engaged in securities sales of $2,620,089, which resulted in net realized gains (losses) of $(47,186).

18 Invesco Summit Fund

NOTE 5—Expense Offset Arrangement(s)

NOTE 6—Trustees’ and Officers’ Fees and Benefits

NOTE 7—Cash Balances

NOTE 8—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2017 and 2016:


	2017		2016
Ordinary income	$	1,102,377	$	—
Long-term capital gain		105,117,072		120,302,924
Total distributions	$	106,219,449	$	120,302,924

Tax Components of Net Assets at Period-End:


	2017
Undistributed ordinary income	$	5,888,472
Undistributed long-term gain		72,869,226
Net unrealized appreciation — investments		950,892,470
Net unrealized appreciation (depreciation) — foreign currencies		(1,586	)
Temporary book/tax differences		(436,208	)
Shares of beneficial interest		1,119,832,965
Total net assets	$	2,149,045,339

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales.

The Fund does not have a capital loss carryforward as of October 31, 2017.

19 Invesco Summit Fund

NOTE 9—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2017 was $604,422,578 and $682,080,356, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.


Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	974,066,785
Aggregate unrealized (depreciation) of investments		(23,174,315	)
Net unrealized appreciation of investments	$	950,892,470

Cost of investments for tax purposes is $1,202,656,739.

NOTE 10—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of foreign currency transactions and partnerships, on October 31, 2017, undistributed net investment income was increased by $13,139 and undistributed net realized gain was decreased by $13,139. This reclassification had no effect on the net assets of the Fund.

NOTE 11—Share Information


	Summary of Share Activity
	Years ended October 31,
	2017						2016
	Shares			Amount			Shares			Amount
Sold:
Class A		1,616,698		$	29,365,182			1,586,776		$	25,588,835
Class B		14,112			224,817			8,187			126,342
Class C		377,457			6,417,661			209,372			3,205,647
Class P		1,741,281			31,130,630			2,250,146			36,399,297
Class S		4,783			84,978			9,453			154,193
Class Y		633,118			11,532,147			425,083			6,711,110
Class R6^(a)		568			10,005			—			—

Issued as reinvestment of dividends:
Class A		173,488			2,779,270			205,393			3,292,454
Class B		1,135			16,791			2,679			40,164
Class C		19,988			294,614			24,777			370,418
Class P		6,231,181			100,945,132			7,072,427			114,502,599
Class S		11,806			189,951			14,167			227,949
Class Y		14,223			229,700			8,724			140,813

Automatic conversion of Class B shares to Class A shares:
Class A		10,175			178,740			13,153			209,023
Class B		(11,042	)		(178,740	)		(14,108	)		(209,023	)

Reacquired:
Class A		(982,545	)		(17,451,273	)		(1,635,699	)		(25,604,997	)
Class B		(3,617	)		(59,639	)		(12,798	)		(185,012	)
Class C		(217,575	)		(3,638,096	)		(202,095	)		(2,931,500	)
Class P		(9,754,579	)		(176,160,350	)		(9,931,393	)		(160,323,542	)
Class S		(32,871	)		(609,812	)		(34,384	)		(533,958	)
Class Y		(179,003	)		(3,189,055	)		(342,458	)		(5,390,832	)
Net increase (decrease) in share activity		(331,219	)	$	(17,887,347	)		(342,598	)	$	(4,210,020	)

^(a)	Commencement date April 4, 2017.

20 Invesco Summit Fund

NOTE 12—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.


	Net asset value, beginning of period		Net investment income (loss)^(a)			Net gains on securities (both realized and unrealized)		Total from investment operations			Dividends from net investment income			Distributions from net realized gains			Total distributions			Net asset value, end of period		Total return^(b)			Net assets, end of period (000’s omitted)		Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed			Ratio of net investment income (loss) to average net assets			Portfolio turnover^(c)
Class A
Year ended 10/31/17	$	16.56	$	(0.02	)	$	4.60	$	4.58		$	—		$	(1.00	)	$	(1.00	)	$	20.14		29.20	%	$	77,519		1.04	%^(d)		1.04	%^(d)		(0.13	)%^(d)		31	%
Year ended 10/31/16		17.59		(0.01	)		0.11		0.10			—			(1.13	)		(1.13	)		16.56		0.81			50,217		1.05			1.05			(0.05	)		47
Year ended 10/31/15		18.62		(0.03	)		1.44		1.41			—			(2.44	)		(2.44	)		17.59		8.86			50,349		1.04			1.04			(0.16	)		49
Year ended 10/31/14		16.40		(0.03	)		2.62		2.59			(0.03	)		(0.34	)		(0.37	)		18.62		16.06			30,382		1.05			1.05			(0.18	)		52
Year ended 10/31/13		12.67		0.03			3.72		3.75			(0.02	)		—			(0.02	)		16.40		29.68			23,025		1.06			1.06			0.20			49
Class B
Year ended 10/31/17		15.38		(0.14	)		4.23		4.09			—			(1.00	)		(1.00	)		18.47		28.21			347		1.79	^(d)		1.79	^(d)		(0.88	)^(d)		31
Year ended 10/31/16		16.53		(0.12	)		0.10		(0.02	)		—			(1.13	)		(1.13	)		15.38		0.09			280		1.80			1.80			(0.80	)		47
Year ended 10/31/15		17.77		(0.15	)		1.35		1.20			—			(2.44	)		(2.44	)		16.53		7.20			566		1.79			1.79			(0.91	)		49
Year ended 10/31/14		15.76		(0.15	)		2.50		2.35			—			(0.34	)		(0.34	)		17.77		15.19			676		1.80			1.80			(0.93	)		52
Year ended 10/31/13		12.25		(0.08	)		3.59		3.51			—			—			—			15.76		28.65			831		1.81			1.81			(0.55	)		49
Class C
Year ended 10/31/17		15.34		(0.15	)		4.22		4.07			—			(1.00	)		(1.00	)		18.41		28.15			9,325		1.79	^(d)		1.79	^(d)		(0.88	)^(d)		31
Year ended 10/31/16		16.49		(0.12	)		0.10		(0.02	)		—			(1.13	)		(1.13	)		15.34		0.09			5,008		1.80			1.80			(0.80	)		47
Year ended 10/31/15		17.73		(0.15	)		1.35		1.20			—			(2.44	)		(2.44	)		16.49		8.02			4,855		1.79			1.79			(0.91	)		49
Year ended 10/31/14		15.73		(0.16	)		2.50		2.34			—			(0.34	)		(0.34	)		17.73		15.15			2,337		1.80			1.80			(0.93	)		52
Year ended 10/31/13		12.22		(0.08	)		3.59		3.51			—			—			—			15.73		28.72			2,122		1.81			1.81			(0.55	)		49
Class P
Year ended 10/31/17		16.75		0.00			4.65		4.65			(0.01	)		(1.00	)		(1.01	)		20.39		29.32			2,044,421		0.89	^(d)		0.89	^(d)		0.02	^(d)		31
Year ended 10/31/16		17.75		0.02			0.11		0.13			—			(1.13	)		(1.13	)		16.75		0.98			1,708,869		0.90			0.90			0.10			47
Year ended 10/31/15		18.74		(0.00	)		1.45		1.45			—			(2.44	)		(2.44	)		17.75		9.03			1,821,733		0.89			0.89			(0.01	)		49
Year ended 10/31/14		16.50		(0.01	)		2.63		2.62			(0.04	)		(0.34	)		(0.38	)		18.74		16.22			1,829,660		0.90			0.90			(0.03	)		52
Year ended 10/31/13		12.75		0.05			3.74		3.79			(0.04	)		—			(0.04	)		16.50		29.84			1,746,339		0.91			0.91			0.35			49
Class S
Year ended 10/31/17		16.63		(0.01	)		4.62		4.61			(0.00	)		(1.00	)		(1.00	)		20.24		29.29			3,521		0.94	^(d)		0.94	^(d)		(0.03	)^(d)		31
Year ended 10/31/16		17.64		0.01			0.11		0.12			—			(1.13	)		(1.13	)		16.63		0.92			3,164		0.95			0.95			0.05			47
Year ended 10/31/15		18.66		(0.01	)		1.43		1.42			—			(2.44	)		(2.44	)		17.64		8.90			3,546		0.94			0.94			(0.06	)		49
Year ended 10/31/14		16.43		(0.01	)		2.62		2.61			(0.04	)		(0.34	)		(0.38	)		18.66		16.18			3,685		0.95			0.95			(0.08	)		52
Year ended 10/31/13		12.70		0.04			3.73		3.77			(0.04	)		—			(0.04	)		16.43		29.74			4,490		0.96			0.96			0.30			49
Class Y
Year ended 10/31/17		16.71		0.02			4.64		4.66			(0.03	)		(1.00	)		(1.03	)		20.34		29.46			13,881		0.79	^(d)		0.79	^(d)		0.12	^(d)		31
Year ended 10/31/16		17.69		0.03			0.12		0.15			—			(1.13	)		(1.13	)		16.71		1.10			3,576		0.80			0.80			0.20			47
Year ended 10/31/15		18.67		0.02			1.44		1.46			—			(2.44	)		(2.44	)		17.69		9.13			2,170		0.79			0.79			0.09			49
Year ended 10/31/14		16.45		0.01			2.61		2.62			(0.06	)		(0.34	)		(0.40	)		18.67		16.23			699		0.80			0.80			0.07			52
Year ended 10/31/13		12.72		0.06			3.73		3.79			(0.06	)		—			(0.06	)		16.45		29.90			514		0.81			0.81			0.45			49
Class R5
Year ended 10/31/17		16.77		0.03			4.66		4.69			(0.04	)		(1.00	)		(1.04	)		20.42		29.56			20		0.76	^(d)		0.76	^(d)		0.15	^(d)		31
Year ended 10/31/16		17.75		0.04			0.11		0.15			—			(1.13	)		(1.13	)		16.77		1.10			17		0.74			0.74			0.26			47
Year ended 10/31/15		18.71		0.04			1.44		1.48			—			(2.44	)		(2.44	)		17.75		9.24			18		0.68			0.68			0.20			49
Year ended 10/31/14		16.46		0.03			2.63		2.66			(0.07	)		(0.34	)		(0.41	)		18.71		16.50			541		0.69			0.69			0.18			52
Year ended 10/31/13		12.73		0.08			3.72		3.80			(0.07	)		—			(0.07	)		16.46		30.05			114		0.71			0.71			0.55			49
Class R6
Year ended 10/31/17^(e)		17.61		0.01			2.80		2.81			—			—			—			20.42		15.96			12		0.77	^(d)(f)		0.77	^(d)(f)		0.14	^(d)(f)		31

^(a)	Calculated using average shares outstanding.

^(b)

^(c)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)	Ratios are based on average daily net assets (000’s omitted) of $60,579, $338, $6,564, $1,875,233, $3,441, $7,894, $18 and $11 for Class A, Class B, Class C, Class P, Class S Class Y, Class R5 and Class R6 shares, respectively.

^(e)	Commencement date of April 4, 2017.

^(f)	Annualized.

21 Invesco Summit Fund

Note 13—Subsequent Event

22 Invesco Summit Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Equity Funds (Invesco Equity Funds)

and Shareholders of Invesco Summit Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Summit Fund (one of the portfolios constituting the AIM Equity Funds (Invesco Equity Funds), hereafter referred to as the “Fund”) as of October 31, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of October 31, 2017 by correspondence with the custodian, transfer agent and brokers, and when replies were not received from brokers, we performed other auditing procedures, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Houston, Texas

December 21, 2017

23 Invesco Summit Fund

Calculating your ongoing Fund expenses

Example

Actual expenses

Hypothetical example for comparison purposes


Class	Beginning Account Value (05/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
Class	Beginning Account Value (05/01/17)		Ending Account Value (10/31/17)¹		Expenses Paid During Period²		Ending Account Value (10/31/17)		Expenses Paid During Period²		Annualized Expense Ratio
A	$	1,000.00	$	1,127.00	$	5.58	$	1,019.96	$	5.30		1.04	%
B		1,000.00		1,122.10		9.57		1,016.18		9.10		1.79
C		1,000.00		1,121.90		9.57		1,016.18		9.10		1.79
P		1,000.00		1,127.10		4.77		1,020.72		4.53		0.89
S		1,000.00		1,126.90		5.04		1,020.47		4.79		0.94
Y		1,000.00		1,128.10		4.24		1,021.22		4.02		0.79
R5		1,000.00		1,128.20		4.02		1,021.42		3.82		0.75
R6		1,000.00		1,128.20		4.08		1,021.37		3.87		0.76

²	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 184/365 to reflect the most recent fiscal half year.

24 Invesco Summit Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Equity Funds (Invesco Equity Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco Summit Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2017.

The Board’s Fund Evaluation Process

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A.	Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the

B.	Fund Investment Performance

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Multi-Cap Growth Funds Index. The Board noted that performance of Class A shares of the Fund was in the third quintile of its performance universe for the one and three year periods and the second quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was below the performance of the Index for the one year period and above the performance of the Index for the three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.	Advisory and Sub-Advisory Fees

25 Invesco Summit Fund

management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group.

The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other mutual funds or client accounts with investment strategies comparable to those of the Fund.

D.	Economies of Scale and Breakpoints

E.	Profitability and Financial Resources

F.	Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits received by Invesco Advisers and its affiliates

from the relationship with the Fund, including the fees received for providing transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Adviser’s or the Affiliated Sub-Adviser’s expenses. The Board also considered that it receives periodic reports from the Chief Compliance Officer of the Invesco Funds demonstrating that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

26 Invesco Summit Fund

Tax Information

The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.

The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2017:


Federal and State Income Tax
Long-Term Capital Gain Distributions	$	105,117,072
Qualified Dividend Income*		100	%
Corporate Dividends Received Deduction*		100	%
U.S. Treasury Obligations*		0	%

The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.

27 Invesco Summit Fund

Trustees and Officers


Name, Year of Birth and Position(s) Held with the Trust	Trustee and/ or Officer Since	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Directorship(s) Held by Trustee During Past 5 Years
Interested Persons
Martin L. Flanagan¹ — 1960 Trustee	2007	Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Chairman and Chief Executive Officer, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Holding Company (US), Inc. (formerly IVZ Inc.) (holding company), Invesco Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)	158	None
Philip A. Taylor² — 1954 Trustee and Senior Vice President	2006	Head of the Americas and Senior Managing Director, Invesco Ltd.; Director, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.) (financial services holding company); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent); Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); Director, Chairman and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Trustee and Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management). Formerly: Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, Van Kampen Exchange Corp; President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust); Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust only); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent); Director and Chairman, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company), Invesco Canada Holdings Inc. (holding company), Trimark Investments Ltd./Placements Trimark Ltèe and Invesco Financial Services Ltd/Services Financiers Invesco Ltèe; Chief Executive Officer, Invesco Canada Fund Inc. (corporate mutual fund company); Director and Chairman, Van Kampen Investor Services Inc.; Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company) and Van Kampen Investments Inc.; Director and President, AIM GP Canada Inc. (general partner for limited partnerships) and Van Kampen Advisors, Inc.; Director and Chief Executive Officer, Invesco Trimark Dealer Inc. (registered broker dealer); Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), and Short-Term Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.	158	None

¹	Mr. Flanagan is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer of the Adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the Adviser.

²	Mr. Taylor is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer and a director of the Adviser.

T-1 Invesco Summit Fund

Trustees and Officers—(continued)


Name, Year of Birth and Position(s) Held with the Trust	Trustee and/ or Officer Since	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Directorship(s) Held by Trustee During Past 5 Years
Independent Trustees
Bruce L. Crockett — 1944 Trustee and Chair	1993	Chairman, Crockett Technologies Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer, COMSAT Corporation; Chairman, Board of Governors of INTELSAT (international communications company); ACE Limited (insurance company); Independent Directors Council and Investment Company Institute: Member of the Audit Committee, Investment Company Institute; Member of the Executive Committee and Chair of the Governance Committee, Independent Directors Council	158	Director and Chairman of the Audit Committee, ALPS (Attorneys Liability Protection Society) (insurance company); Director and Member of the Audit Committee, Ferroglobe PLC (metallurgical company)
David C. Arch — 1945 Trustee	2010	Chairman of Blistex Inc. (consumer health care products manufacturer); Member, World Presidents’ Organization	158	Board member of the Illinois Manufacturers’ Association
James T. Bunch — 1942 Trustee	2003	Managing Member, Grumman Hill Group LLC (family office/private equity investments) Formerly: Chairman of the Board, Denver Film Society; Chairman of the Board of Trustees, Evans Scholarship Foundation; Chairman, Board of Governors, Western Golf Association	158	Trustee, Evans Scholarship Foundation
Jack M. Fields — 1952 Trustee	1997	Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Discovery Learning Alliance (non-profit) Formerly: Owner and Chief Executive Officer, Dos Angeles Ranch L.P. (cattle, hunting, corporate entertainment); Director, Insperity, Inc. (formerly known as Administaff) (human resources provider); Chief Executive Officer, Texana Timber LP (sustainable forestry company); Director of Cross Timbers Quail Research Ranch (non-profit); and member of the U.S. House of Representatives	158	None
Cynthia Hostetler — 1962 Trustee	2017	Non-Executive Director and Trustee of a number of public and private business corporations Formerly: Head of Investment Funds and Private Equity, Overseas Private Investment Corporation; President, First Manhattan Bancorporation, Inc.; Attorney, Simpson Thacher & Bartlett LLP	158	Vulcan Materials Company (construction materials company); Trilinc Global Impact Fund; Aberdeen Investment Funds (4 portfolios); Artio Global Investment LLC (mutual fund complex); Edgen Group, Inc. (specialized energy and infrastructure products distributor)
Eli Jones — 1961 Trustee	2016	Professor and Dean, Mays Business School — Texas A&M University Formerly: Professor and Dean, Walton College of Business, University of Arkansas and E.J. Ourso College of Business, Louisiana State University; Director, Arvest Bank	158	Insperity, Inc. (formerly known as Administaff) (human resources provider)
Prema Mathai-Davis — 1950 Trustee	1998	Retired. Formerly: Chief Executive Officer, YWCA of the U.S.A.	158	None
Teresa M. Ressel — 1962 Trustee	2017	Non-executive director and trustee of a number of public and private business corporations Formerly: Chief Financial Officer, Olayan America, The Olayan Group (international investor/commercial/industrial); Chief Executive Officer, UBS Securities LLC; Group Chief Operating Officer, Americas, UBS AG; Assistant Secretary for Management & Budget and CFO, US Department of the Treasury; Chief Compliance Officer, Kaiser Permanente (healthcare consortium); Program Manager, Hewlett-Packard; Nuclear Engineering, General Dynamics Corporation (aerospace and defense company)	158	Atlantic Power Corporation (power generation company); ON Semiconductor Corp. (semiconductor supplier)
Larry Soll — 1942 Trustee	2003	Retired. Formerly: Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)	158	None
Ann Barnett Stern — 1957 Trustee	2017	President and Chief Executive Officer, Houston Endowment Inc. (private philanthropic institution) Formerly: Executive Vice President and General Counsel, Texas Children’s Hospital; Attorney, Beck, Redden and Secrest, LLP; Business Law Instructor, University of St. Thomas; Attorney, Andrews & Kurth LLP	158	Federal Reserve Bank of Dallas
Raymond Stickel, Jr. — 1944 Trustee	2005	Retired. Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios); Partner, Deloitte & Touche	158	None
Robert C. Troccoli — 1949 Trustee	2016	Adjunct Professor, University of Denver — Daniels College of Business Formerly: Senior Partner, KPMG LLP	158	None

T-2 Invesco Summit Fund

Trustees and Officers—(continued)


Name, Year of Birth and Position(s) Held with the Trust	Trustee and/ or Officer Since	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Directorship(s) Held by Trustee During Past 5 Years
Independent Trustees—(continued)
Christopher L. Wilson — 1957 Trustee	2017	Managing Partner, CT2, LLC (investing and consulting firm) Formerly: President/Chief Executive Officer, Columbia Funds, Bank of America Corporation; President/Chief Executive Officer, CDC IXIS Asset Management Services, Inc.; Principal & Director of Operations, Scudder Funds, Scudder, Stevens & Clark, Inc.; Assistant Vice President, Fidelity Investments	158	TD Asset Management USA Inc. (mutual fund complex) (22 portfolios); ISO New England, Inc. (non-profit organization managing regional electricity market)
Other Officers
Sheri Morris — 1964 President, Principal Executive Officer and Treasurer	1999	President, Principal Executive Officer and Treasurer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust Formerly: Vice President and Principal Financial Officer, The Invesco Funds; Vice President, Invesco Aim Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust	N/A	N/A
Russell C. Burk — 1958 Senior Vice President and Senior Officer	2005	Senior Vice President and Senior Officer, The Invesco Funds	N/A	N/A
John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary	2006	Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Managing Director, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.) and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust; Manager and Secretary, Invesco Indexing LLC Formerly: Director, Secretary, General Counsel and Senior Vice President, Van Kampen Exchange Corp.; Director, Vice President and Secretary, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Director and Vice President, Van Kampen Advisors Inc.; Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; Director, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco AIM Advisers, Inc. and Van Kampen Investments Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco AIM Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)	N/A	N/A
Gregory G. McGreevey — 1962 Senior Vice President	2012	Senior Managing Director, Invesco Ltd.; Director, Chairman, President, and Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President, Invesco Management Group, Inc.; Director, Invesco Mortgage Capital, Inc. and Invesco Senior Secured Management, Inc.; and Senior Vice President, The Invesco Funds Formerly: Assistant Vice President, The Invesco Funds	N/A	N/A

T-3 Invesco Summit Fund

Trustees and Officers—(continued)


Name, Year of Birth and Position(s) Held with the Trust	Trustee and/ or Officer Since	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Directorship(s) Held by Trustee During Past 5 Years
Other Officers—(continued)
Kelli Gallegos — 1970 Vice President, Principal Financial Officer and Assistant Treasurer	2008	Vice President, Principal Financial Officer and Assistant Treasurer, The Invesco Funds; Assistant Treasurer, Invesco PowerShares Capital Management LLC, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust Formerly: Assistant Vice President, The Invesco Funds	N/A	N/A
Tracy Sullivan — 1962 Vice President, Chief Tax Officer and Assistant Treasurer	2008	Vice President, Chief Tax Officer and Assistant Treasurer, The Invesco Funds; Assistant Treasurer, Invesco PowerShares Capital Management LLC, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust Formerly: Assistant Vice President, The Invesco Funds	N/A	N/A
Crissie M. Wisdom — 1969 Anti-Money Laundering Compliance Officer	2013	Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser), Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.), Invesco Distributors, Inc., Invesco Investment Services, Inc., Invesco Management Group, Inc., The Invesco Funds, and PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust; Anti-Money Laundering Compliance Officer and Bank Secrecy Act Officer, INVESCO National Trust Company and Invesco Trust Company; and Fraud Prevention Manager and Controls and Risk Analysis Manager for Invesco Investment Services, Inc. Formerly: Anti-Money Laundering Compliance Officer, Van Kampen Exchange Corp.	N/A	N/A
Robert R. Leveille — 1969 Chief Compliance Officer	2016	Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser); and Chief Compliance Officer, The Invesco Funds Formerly: Chief Compliance Officer, Putnam Investments and the Putnam Funds	N/A	N/A

T-4 Invesco Summit Fund

Explore High-Conviction Investing with Invesco

LOGO

Go paperless with eDelivery

Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.

With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:

∎

Fund reports and prospectuses

∎

Quarterly statements

∎

Daily confirmations

∎

Tax forms

Invesco mailing information

Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.

Important notice regarding delivery of security holder documents

Fund holdings and proxy voting information


SEC file numbers: 811-01424 and 002-25469		Invesco Distributors, Inc.		SUM-AR-1		12132017		1016

ITEM 2.

CODE OF ETHICS.

There were no amendments to the Code of Ethics (the “Code”) that applies to the Registrant’s Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”) during the period covered by the report. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code to the PEO or PFO during the period covered by this report.

ITEM 3.

AUDIT COMMITTEE FINANCIAL EXPERT.

The Board of Trustees has determined that the Registrant has at least one audit committee financial expert serving on its Audit Committee. The Audit Committee financial expert is Raymond Stickel, Jr. Mr. Stickel is “independent” within the meaning of that term as used in Form N-CSR.

ITEM 4.

PRINCIPAL ACCOUNTANT FEES AND SERVICES.

PricewaterhouseCoopers LLP informed the Trust that it has identified an issue related to its independence under Rule 2-01(c)(1)(ii)(A) of Regulation S-X (referred to as the Loan Rule). The Loan Rule prohibits accounting firms, such as PricewaterhouseCoopers LLP, from being deemed independent if they have certain financial relationships with their audit clients or certain affiliates of those clients. The Trust is required under various securities laws to have its financial statements audited by an independent accounting firm.

The Loan Rule specifically provides that an accounting firm would not be independent if it or certain affiliates and covered persons receives a loan from a lender that is a record or beneficial owner of more than ten percent of an audit client’s equity securities (referred to as a “more than ten percent owner”). For purposes of the Loan Rule, audit clients include the Funds as well as all registered investment companies advised by the Adviser and its affiliates, including other subsidiaries of the Adviser’s parent company, Invesco Ltd. (collectively, the Invesco Fund Complex). PricewaterhouseCoopers LLP informed the Trust it and certain affiliates and covered persons have relationships with lenders who hold, as record owner, more than ten percent of the shares of certain funds within the Invesco Fund Complex, which may implicate the Loan Rule.

On June 20, 2016, the SEC Staff issued a “no-action” letter to another mutual fund complex (see Fidelity Management & Research Company et al., No-Action Letter) related to the audit independence issue described above. In that letter, the SEC confirmed that it would not recommend enforcement action against a fund that relied on audit services performed by an audit firm that was not in compliance with the Loan Rule in certain specified circumstances. In connection with prior independence determinations, PricewaterhouseCoopers LLP communicated, as contemplated by the no-action letter, that it believes that it remains objective and impartial and that a reasonable investor possessing all the facts would conclude that PricewaterhouseCoopers LLP is able to exhibit the requisite objectivity and impartiality to report on the Funds’ financial statements as the independent registered public accounting firm. PricewaterhouseCoopers LLP also represented that it has complied with PCAOB Rule 3526(b)(1) and (2), which are conditions to the Funds relying on the no action letter, and affirmed that it is an independent accountant within the meaning of PCAOB Rule 3520. Therefore, the Adviser, the Funds and PricewaterhouseCoopers LLP concluded that PricewaterhouseCoopers LLP could continue as the Funds’ independent registered public accounting firm. The Invesco Fund Complex relied upon the no-action letter in reaching this conclusion.

If in the future the independence of PricewaterhouseCoopers LLP is called into question under the Loan Rule by circumstances that are not addressed in the SEC’s no-action letter, the Funds will need to take other action in order for the Funds’ filings with the SEC containing financial statements to be deemed compliant with applicable securities laws. Such additional actions could result in additional costs, impair the ability of the Funds to issue new shares or have other material adverse effects on the Funds. The SEC no-action relief was initially set to expire 18 months from issuance but has been extended by the SEC without an expiration date, except that the no-action letter will be withdrawn upon the effectiveness of any amendments to the Loan Rule designed to address the concerns expressed in the letter.

(a) to (d)

Fees Billed by PWC Related to the Registrant

PWC billed the Registrant aggregate fees for services rendered to the Registrant for the last two fiscal years as follows:


	Fees Billed for Services Rendered to the Registrant for fiscal year end 2017	Fees Billed for Services Rendered to the Registrant for fiscal year end 2016
Audit Fees	$ 88,275	$ 84,875
Audit-Related Fees⁽¹⁾	$ 1,500	$ 0
Tax Fees⁽²⁾	$ 46,402	$ 25,225
All Other Fees	$ 0	$ 0
Total Fees	$ 136,177	$ 110,100

(g) PWC billed the Registrant aggregate non-audit fees of $47,902 for the fiscal year ended 2017, and $25,225 for the fiscal year ended 2016, for non-audit services rendered to the Registrant.

(1)

Audit-Related fees for the fiscal year end 2017 include fees billed for reviewing regulatory filings.

(2)

Tax fees for the fiscal year end October 31, 2017 includes fees billed for reviewing tax returns and/or services related to tax compliance. Tax fees for fiscal year end October 31, 2016 includes fees billed for reviewing tax returns and/or services related to tax compliance.

Fees Billed by PWC Related to Invesco and Invesco Affiliates

PWC billed Invesco Advisers, Inc. (“Invesco”), the Registrant’s adviser, and any entity controlling, controlled by or under common control with Invesco that provides ongoing services to the Registrant (“Invesco Affiliates”) aggregate fees for pre-approved non-audit services rendered to Invesco and Invesco Affiliates for the last two fiscal years as follows:


	Fees Billed for Non- Audit Services Rendered to Invesco and Invesco Affiliates for fiscal year end 2017 That Were Required to be Pre-Approved by the Registrant’s Audit Committee	Fees Billed for Non- Audit Services Rendered to Invesco and Invesco Affiliates for fiscal year end 2016 That Were Required to be Pre-Approved by the Registrant’s Audit Committee
Audit-Related Fees	$ 662,000	$ 635,000
Tax Fees	$ 0	$ 0
All Other Fees	$ 1,245,000	$ 2,193,000
Total Fees⁽¹⁾	$ 1,907,000	$ 2,828,000

(1)	Audit-Related fees for the year end 2017 include fees billed related to reviewing controls at a service organization. Audit-Related fees for the year end 2016 include fees billed related to reviewing controls at a service organization.

All other fees for the year end 2017 include fees billed related to the assessments for certain of the company’s risk management tools, current state analysis against regulatory requirements and identification of structural and organizational alternatives, informed by industry practices, for certain of the company’s administrative activities and functions All other fees for the year end 2016 include fees billed related to the identification of structural and organizational alternatives, informed by industry practices, for certain of the company’s administrative activities and functions.

(e)(2) There were no amounts that were pre-approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.

(g) Including the fees for services not required to be pre-approved by the registrant’s audit committee, PWC billed Invesco and Invesco Affiliates aggregate non-audit fees of $4,890,000 for the fiscal year ended October 31, 2017, and $5,032,000 for the fiscal year ended October 31, 2016, for non-audit services rendered to Invesco and Invesco Affiliates.

PWC provided audit services to the Investment Company complex of approximately $22 million.

(h) The Audit Committee also has considered whether the provision of non-audit services that were rendered to Invesco and Invesco Affiliates that were not required to be pre-approved pursuant to SEC regulations, if any, is compatible with maintaining PWC’s independence.

(f) Not applicable.

(e)(1)

PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES

POLICIES AND PROCEDURES

As adopted by the Audit Committees

of the Invesco Funds (the “Funds”)

Last Amended March 29, 2017

Statement of Principles

The Audit Committees (the “Audit Committee”) of the Boards of Trustees of the Funds (the “Board”) have adopted these policies and procedures (the “Procedures”) with respect to the pre-approval of audit and non-audit services to be provided by the Funds’ independent auditor (the “Auditor”) to the Funds, and to the Funds’ investment adviser(s) and any entity controlling, controlled by, or under common control with the investment adviser(s) that provides ongoing services to the Funds (collectively, “Service Affiliates”).

Under Section 202 of the Sarbanes-Oxley Act of 2002, all audit and non-audit services provided to the Funds by the Auditor must be preapproved by the Audit Committee. Rule 2-01 of Regulation S-X requires that the Audit Committee also pre-approve a Service Affiliate’s engagement of the Auditor for non-audit services if the engagement relates directly to the operations and financial reporting of the Funds (a “Service Affiliate’s Covered Engagement”).

These Procedures set forth the procedures and the conditions pursuant to which the Audit Committee may pre-approve audit and non-audit services for the Funds and a Service Affiliate’s Covered Engagement pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”) and other organizations and regulatory bodies applicable to the Funds (“Applicable Rules”).¹ They address both general pre-approvals without consideration of specific case-by-case services (“general pre-approvals”) and pre-approvals on a case-by-case basis (“specific pre-approvals”). Any services requiring pre-approval that are not within the scope of general pre-approvals hereunder are subject to specific pre-approval. These Procedures also address the delegation by the Audit Committee of pre-approval authority to the Audit Committee Chair or Vice Chair.

II.

Pre-Approval of Fund Audit Services

The annual Fund audit services engagement, including terms and fees, is subject to specific pre-approval by the Audit Committee. Audit services include the annual financial statement audit and other procedures required to be performed by an independent auditor to be able to form an opinion on the Funds’ financial statements. The Audit Committee will receive, review and consider sufficient information concerning a proposed Fund audit engagement to make a reasonable evaluation of the Auditor’s qualifications and independence. The Audit Committee will oversee the Fund audit services engagement as necessary, including approving any changes in terms, audit scope, conditions and fees.

In addition to approving the Fund audit services engagement at least annually and specifically approving any changes, the Audit Committee may generally or specifically pre-approve engagements for other audit services, which are those services that only an independent auditor reasonably can provide. Other audit services may include services associated with SEC registration statements, periodic reports and other documents filed with the SEC.

¹ Applicable Rules include, for example, New York Stock Exchange (“NYSE”) rules applicable to closed-end funds managed by Invesco and listed on NYSE.

III.

General and Specific Pre-Approval of Non-Audit Fund Services

The Audit Committee will consider, at least annually, the list of General Pre-Approved Non-Audit Services which list may be terminated or modified at any time by the Audit Committee. To inform the Audit Committee’s review and approval of General Pre-Approved Non-Audit Services, the Funds’ Treasurer (or his or her designee) and Auditor shall provide such information regarding independence or other matters as the Audit Committee may request.

Any services or fee ranges that are not within the scope of General Pre-Approved Non-Audit Services have not received general pre-approval and require specific pre-approval. Each request for specific pre-approval by the Audit Committee for services to be provided by the Auditor to the Funds must be submitted to the Audit Committee by the Funds’ Treasurer (or his or her designee) and must include detailed information about the services to be provided, the fees or fee ranges to be charged, and other relevant information sufficient to allow the Audit Committee to consider whether to pre-approve such engagement, including evaluating whether the provision of such services will impair the independence of the Auditor and is otherwise consistent with Applicable Rules.

IV.

Non-Audit Service Types

The Audit Committee may provide either general or specific pre-approval of audit-related, tax or other services, each as described in more detail below.

Audit-Related Services

“Audit-related services” are assurance and related services that are reasonably related to the performance of the audit or review of the Fund’s financial statements or that are traditionally performed by an independent auditor. Audit-related services include, among others, accounting consultations related to accounting, financial reporting or disclosure matters not classified as “Audit services”; assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; services related to mergers, acquisitions or dispositions; compliance with ratings agency requirements and interfund lending activities; and assistance with internal control reporting requirements.

Tax Services

“Tax services” include, but are not limited to, the review and signing of the Funds’ federal tax returns, the review of required distributions by the Funds and consultations regarding tax matters such as the tax treatment of new investments or the impact of new regulations. The Audit Committee will not approve proposed services of the Auditor which the Audit Committee believes are to be provided in connection with a service or transaction initially recommended by the Auditor, the sole business purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee will consult with the Funds’ Treasurer (or his or her designee) and may consult with outside counsel or advisers as necessary to ensure the consistency of tax services rendered by the Auditor with the foregoing policy. The Auditor shall not represent any Fund or any Service Affiliate before a tax court, district court or federal court of claims.

Each request to provide tax services under either the general or specific pre-approval of the Audit Committee will include a description from the Auditor in writing of (i) the scope of the service, the fee structure for the engagement, and any side letter or other amendment to the engagement letter, or any other agreement (whether oral, written, or otherwise) between the Auditor and the Funds, relating to the service; and (ii) any compensation arrangement or other agreement, such as a referral agreement, a referral fee or fee-sharing arrangement, between the Auditor (or an affiliate of the Auditor) and any person (other than the Funds or Service Affiliates receiving the services) with respect to the promoting, marketing, or recommending of a transaction covered by the service. The Auditor will also discuss with

the Audit Committee the potential effects of the services on the independence of the Auditor, and document the substance of its discussion with the Audit Committee.

Other Services

The Audit Committee may pre-approve other non-audit services so long as the Audit Committee believes that the service will not impair the independence of the Auditor. Appendix I includes a list of services that the Auditor is prohibited from performing by the SEC rules. Appendix I also includes a list of services that would impair the Auditor’s independence unless the Audit Committee reasonably concludes that the results of the services will not be subject to audit procedures during an audit of the Funds’ financial statements.

Pre-Approval of Service Affiliate’s Covered Engagements

Rule 2-01 of Regulation S-X requires that the Audit Committee pre-approve a Service Affiliate’s engagement of the Auditor for non-audit services if the engagement relates directly to the operations and financial reporting of the Funds, defined above as a “Service Affiliate’s Covered Engagement”.

The Audit Committee may provide either general or specific pre-approval of any Service Affiliate’s Covered Engagement, including for audit-related, tax or other services, as described above, if the Audit Committee believes that the provision of the services to a Service Affiliate will not impair the independence of the Auditor with respect to the Funds. Any Service Affiliate’s Covered Engagements that are not within the scope of General Pre-Approved Non-Audit Services have not received general pre-approval and require specific pre-approval.

Each request for specific pre-approval by the Audit Committee of a Service Affiliate’s Covered Engagement must be submitted to the Audit Committee by the Funds’ Treasurer (or his or her designee) and must include detailed information about the services to be provided, the fees or fee ranges to be charged, a description of the current status of the pre-approval process involving other audit committees in the Invesco investment company complex (as defined in Rule 2-201 of Regulation S-X) with respect to the proposed engagement, and other relevant information sufficient to allow the Audit Committee to consider whether the provision of such services will impair the independence of the Auditor from the Funds. Additionally, the Funds’ Treasurer (or his or her designee) and the Auditor will provide the Audit Committee with a statement that the proposed engagement requires pre-approval by the Audit Committee, the proposed engagement, in their view, will not impair the independence of the Auditor and is consistent with Applicable Rules, and the description of the proposed engagement provided to the Audit Committee is consistent with that presented to or approved by the Invesco audit committee.

Information about all Service Affiliate engagements of the Auditor for non-audit services, whether or not subject to pre-approval by the Audit Committee, shall be provided to the Audit Committee at least quarterly, to allow the Audit Committee to consider whether the provision of such services is compatible with maintaining the Auditor’s independence from the Funds. The Funds’ Treasurer and Auditor shall provide the Audit Committee with sufficiently detailed information about the scope of services provided and the fees for such services, to ensure that the Audit Committee can adequately consider whether the provision of such services is compatible with maintaining the Auditor’s independence from the Funds.

VI.

Pre-Approved Fee Levels or Established Amounts

Pre-approved fee levels or ranges for audit and non-audit services to be provided by the Auditor to the Funds, and for a Service Affiliate’s Covered Engagement, under general pre-approval or specific pre-approval will be set periodically by the Audit Committee. Any proposed fees exceeding 110% of the maximum pre-approved fee levels or ranges for such services or engagements will be promptly presented

to the Audit Committee and will require specific pre-approval by the Audit Committee before payment of any additional fees is made.

VII.

Delegation

The Audit Committee hereby delegates, subject to the dollar limitations set forth below, specific authority to its Chair, or in his or her absence, Vice Chair, to pre-approve audit and non-audit services proposed to be provided by the Auditor to the Funds and/or a Service Affiliate’s Covered Engagement, between Audit Committee meetings. Such delegation does not preclude the Chair or Vice Chair from declining, on a case by case basis, to exercise his or her delegated authority and instead convening the Audit Committee to consider and pre-approve any proposed services or engagements.

Notwithstanding the foregoing, the Audit Committee must pre-approve: (a) any non-audit services to be provided to the Funds for which the fees are estimated to exceed $500,000; (b) any Service Affiliate’s Covered Engagement for which the fees are estimated to exceed $500,000; or (c) any cost increase to any previously approved service or engagement that exceeds the greater of $250,000 or 50% of the previously approved fees up to a maximum increase of $500,000.

VIII.

Compliance with Procedures

Notwithstanding anything herein to the contrary, failure to pre-approve any services or engagements that are not required to be pre-approved pursuant to the de minimis exception provided for in Rule 2-01(c)(7)(i)(C) of Regulation S-X shall not constitute a violation of these Procedures. The Audit Committee has designated the Funds’ Treasurer to ensure services and engagements are pre-approved in compliance with these Procedures. The Funds’ Treasurer will immediately report to the Chair of the Audit Committee, or the Vice Chair in his or her absence, any breach of these Procedures that comes to the attention of the Funds’ Treasurer or any services or engagements that are not required to be pre-approved pursuant to the de minimis exception provided for in Rule 2-01(c)(7)(i)(C) of Regulation S-X.

On at least an annual basis, the Auditor will provide the Audit Committee with a summary of all non-audit services provided to any entity in the investment company complex (as defined in section 2-01(f)(14) of Regulation S-X, including the Funds and Service Affiliates) that were not pre-approved, including the nature of services provided and the associated fees.

IX.

Amendments to Procedures

All material amendments to these Procedures must be approved in advance by the Audit Committee. Non-material amendments to these Procedures may be made by the Legal and Compliance Departments and will be reported to the Audit Committee at the next regularly scheduled meeting of the Audit Committee.

Appendix I

Non-Audit Services That May Impair the Auditor’s Independence

The Auditor is not independent if, at any point during the audit and professional engagement, the Auditor provides the following non-audit services:

•

Management functions;

•

Human resources;

•

Broker-dealer, investment adviser, or investment banking services ;

•

Legal services;

•

Expert services unrelated to the audit;

•

Any service or product provided for a contingent fee or a commission;

•

Services related to marketing, planning, or opining in favor of the tax treatment of confidential transactions or aggressive tax position transactions, a significant purpose of which is tax avoidance;

•

Tax services for persons in financial reporting oversight roles at the Fund; and

•

Any other service that the Public Company Oversight Board determines by regulation is impermissible.

An Auditor is not independent if, at any point during the audit and professional engagement, the Auditor provides the following non-audit services unless it is reasonable to conclude that the results of the services will not be subject to audit procedures during an audit of the Funds’ financial statements:

•

Bookkeeping or other services related to the accounting records or financial statements of the audit client;

•

Financial information systems design and implementation;

•

Appraisal or valuation services, fairness opinions, or contribution-in-kind reports;

•

Actuarial services; and

•

Internal audit outsourcing services.

ITEM 5.

AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6.

SCHEDULE OF INVESTMENTS.

Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.

ITEM 7.

DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8.

PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT COMPANIES.

Not applicable.

ITEM 9.

PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None

ITEM 11.

CONTROLS AND PROCEDURES.

(a)

As of November 17, 2017, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the PEO and PFO, to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of November 17, 2017, the Registrant’s disclosure controls and procedures were reasonably designed to ensure: (1) that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure.

(b)

There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 12.

DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 13.

EXHIBITS.

13(a) (1)

Code of Ethics.

13(a) (2)

Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: AIM Equity Funds (Invesco Equity Funds)


By:		/s/ Sheri Morris
		Sheri Morris
		Principal Executive Officer

Date:		January 8, 2018

Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.


By:		/s/ Sheri Morris
		Sheri Morris
		Principal Executive Officer

Date:		January 8, 2018


By:		/s/ Kelli Gallegos
		Kelli Gallegos
		Principal Financial Officer

Date:		January 8, 2018

EXHIBIT INDEX


12(a) (1)		Code of Ethics.

12(a) (2)		Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.

12(a) (3)		Not applicable.

12(b)		Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.

Bruce Crockett

Dear Fellow Shareholders:
Among the many important lessons I’ve learned in more than 40 years in a variety of business endeavors is the value of a trusted advocate.
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment, including but not limited to:

∎ Ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time.

∎ Monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions.