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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANIES
Investment Company Act file number 811-09913
AIM Counselor Series Trust (Invesco Counselor Series Trust)
(Exact name of registrant as specified in charter)
11 Greenway Plaza, Suite 2500 Houston, Texas 77046
(Address of principal executive offices) (Zip code)
(Address of principal executive offices) (Zip code)
Philip A. Taylor 11 Greenway Plaza, Suite 2500 Houston, Texas 77046
(Name and address of agent for service)
(Name and address of agent for service)
Registrant’s telephone number, including area code: (713) 626-1919
Date of fiscal year end: 8/31
Date of reporting period: 2/29/12
Item 1. Reports to Stockholders.
Invesco California Tax-Free Income Fund
Semiannual Report to Shareholders § February 29, 2012
Nasdaq:
A: CLFAX § B: CLFBX § C: CLFCX § Y: CLFDX
| 2 | Fund Performance | |
| 4 | Letters to Shareholders | |
| 5 | Schedule of Investments | |
| 13 | Financial Statements | |
| 15 | Notes to Financial Statements | |
| 21 | Financial Highlights | |
| 22 | Fund Expenses | |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
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 | ||
Fund Performance
Performance summary
Fund vs. Indexes
Cumulative total returns, 8/31/11 to 2/29/12, 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 | 8.68 | % | ||
| Class B Shares | 8.64 | |||
| Class C Shares | 8.46 | |||
| Class Y Shares | 8.79 | |||
Barclays California Municipal Index▼ (Broad Market/Style-Specific Index) | 6.51 | |||
Lipper CA Municipal Debt Funds Index■ (Peer Group Index) | 8.06 | |||
Source(s): ▼Barclays via FactSet Research Systems Inc.; ■Lipper Inc. | ||||
| The Barclays California Municipal Index is an index of California investment grade municipal bonds. | ||
| The Lipper CA Municipal Debt Funds Index is an unmanaged index considered representative of California municipal debt funds tracked by Lipper. | ||
| The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes. | ||
| 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. | ||
| 2 | Invesco California Tax-Free Income Fund |
Average Annual Total Returns As of 2/29/12, including maximum applicable sales charges | ||||||||||||
| After Taxes | ||||||||||||
| on Distributions | ||||||||||||
| Before | After Taxes on | and Sale of | ||||||||||
| Taxes | Distributions | Fund Shares | ||||||||||
Class A Shares | ||||||||||||
| Inception (7/28/97) | 4.33 | % | 4.24 | % | 4.29 | % | ||||||
| 10 Years | 4.10 | 4.02 | 4.09 | |||||||||
| 5 Years | 3.49 | 3.47 | 3.57 | |||||||||
| 1 Year | 11.47 | 11.47 | 9.05 | |||||||||
Class B Shares | ||||||||||||
| Inception (7/11/84) | 6.47 | % | 6.36 | % | 6.33 | % | ||||||
| 10 Years | 4.63 | 4.54 | 4.56 | |||||||||
| 5 Years | 4.18 | 4.16 | 4.19 | |||||||||
| 1 Year | 12.07 | 12.07 | 9.52 | |||||||||
Class C Shares | ||||||||||||
| Inception (7/28/97) | 4.18 | % | 4.08 | % | 4.11 | % | ||||||
| 10 Years | 4.06 | 3.97 | 4.00 | |||||||||
| 5 Years | 3.99 | 3.97 | 3.94 | |||||||||
| 1 Year | 15.59 | 15.59 | 11.61 | |||||||||
Class Y Shares | ||||||||||||
| Inception (7/28/97) | 4.94 | % | 4.85 | % | 4.87 | % | ||||||
| 10 Years | 4.84 | 4.75 | 4.77 | |||||||||
| 5 Years | 4.77 | 4.74 | 4.71 | |||||||||
| 1 Year | 17.29 | 17.29 | 13.01 | |||||||||
Average Annual Total Returns As of 12/31/11, the most recent calendar quarter-end, including maximum applicable sales charges | ||||||||||||
| After Taxes | ||||||||||||
| on Distributions | ||||||||||||
| Before | After Taxes on | and Sale of | ||||||||||
| Taxes | Distributions | Fund Shares | ||||||||||
Class A Shares | ||||||||||||
| Inception (7/28/97) | 4.08 | % | 3.99 | % | 4.08 | % | ||||||
| 10 Years | 3.89 | 3.81 | 3.92 | |||||||||
| 5 Years | 2.81 | 2.78 | 2.99 | |||||||||
| 1 Year | 6.88 | 6.88 | 6.06 | |||||||||
Class B Shares | ||||||||||||
| Inception (7/11/84) | 6.35 | % | 6.24 | % | 6.23 | % | ||||||
| 10 Years | 4.42 | 4.33 | 4.39 | |||||||||
| 5 Years | 3.52 | 3.49 | 3.62 | |||||||||
| 1 Year | 7.33 | 7.33 | 6.44 | |||||||||
Class C Shares | ||||||||||||
| Inception (7/28/97) | 3.93 | % | 3.84 | % | 3.90 | % | ||||||
| 10 Years | 3.87 | 3.78 | 3.84 | |||||||||
| 5 Years | 3.32 | 3.30 | 3.38 | |||||||||
| 1 Year | 10.77 | 10.77 | 8.49 | |||||||||
Class Y Shares | ||||||||||||
| Inception (7/28/97) | 4.70 | % | 4.61 | % | 4.67 | % | ||||||
| 10 Years | 4.64 | 4.56 | 4.62 | |||||||||
| 5 Years | 4.10 | 4.07 | 4.15 | |||||||||
| 1 Year | 12.52 | 12.52 | 9.91 | |||||||||
Effective June 1, 2010, Class A, Class B, Class C and Class I shares of the predecessor fund, Morgan Stanley California Tax-Free Income Fund, advised by Morgan Stanley Investment Advisors Inc. were reorganized into Class A, Class B, Class C and Class Y shares, respectively, of Invesco California Tax-Free Income Fund. Returns shown above for Class A, Class B, Class C and Class Y shares are blended returns of the predecessor fund and Invesco California Tax-Free Income Fund. Share class returns will differ from the predecessor fund because of different expenses.
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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of
Fund shares. 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 and Class Y shares was 0.90%, 0.90%, 1.40% and 0.65%, 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 4.75% 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 Y 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.
After-tax returns are calculated using the historical highest individual federal marginal income tax rate. They do not reflect the effect of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their shares in tax-deferred accounts such as 401(k)s or IRAs. The Fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future.
| 3 | Invesco California Tax-Free Income Fund |
Letters to Shareholders
 Bruce Crockett | Dear Fellow Shareholders: | |
| Throughout 2011, we experienced volatile, challenging markets that presented both opportunities and risks for investors. Based on everything I’ve read, this year could potentially be just as interesting, with continued economic uncertainty and market volatility. | ||
| With this in mind, you’ll want to stay informed regarding the markets and keep up to date with news that affects your investment portfolio. Invesco’s website, invesco.com/us, provides a wealth of information about your investments and news regarding global markets. | ||
| Regardless of economic conditions and market trends, the Invesco Funds Board of Trustees remains committed to putting your interests first. Throughout 2011, we worked to manage costs, and this remains a continuing focus of your Board. We will continue to oversee the funds with the strong sense of responsibility for your money and your continued trust that we’ve always maintained. |
I would like to close by thanking Bob Baker for his distinguished 30-year service with the Invesco Funds Board and his unflagging commitment to our funds’ shareholders. As always, I encourage you to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving you in 2012.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Independent Chair
Invesco Funds Board of Trustees
 Philip Taylor | Dear Shareholders: | |
| This report provides important information about your Fund, including its short- and long-term performance. Also, this report includes a listing of investments held by your Fund at the close of the reporting period. | ||
| Investors are likely to confront both opportunities and challenges in 2012. As we saw in 2011, market sentiment can change suddenly and dramatically – and certainly without advance notice – depending on economic developments and world events. Similarly, your own situation, needs and goals can change, requiring adjustments in your financial strategy. | ||
| In addition to meeting with your financial adviser regularly to discuss your individual situation, you also may find it helpful to stay abreast of market trends and developments. Doing so may provide reassurance in times of economic uncertainty and market volatility such as we saw last year and may see again this year. |
Invesco can help you stay informed about your investments and market trends. On our website, invesco.com/us, we provide timely market updates and commentary from many of our portfolio managers and other investment professionals. Also on our website, you can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer at invesco.com/us.
If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.
All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.
Sincerely,
Philip Taylor
Senior Managing Director, Invesco Ltd.
Senior Managing Director, Invesco Ltd.
| 4 | Invesco California Tax-Free Income Fund |
Schedule of Investments
February 29, 2012
(Unaudited)
| Principal | ||||||||||||||||
| Interest | Maturity | Amount | ||||||||||||||
| Rate | Date | (000) | Value | |||||||||||||
| Municipal Obligations–105.40% | ||||||||||||||||
| California–98.92% | ||||||||||||||||
ABAG Finance Authority for Non-profit Corps. (Jewish Home of San Francisco); Series 2005, VRD RB (LOC–Wells Fargo Bank N.A.)(a)(b) | 0.09 | % | 11/15/35 | $ | 5,220 | $ | 5,220,000 | |||||||||
| ABAG Finance Authority for Non-profit Corps. (Sharp Healthcare); Series 2012 A, RB | 5.00 | % | 08/01/28 | 900 | 1,003,131 | |||||||||||
| Adelanto (City of) Public Utility Authority (Utility System); Series 2009 A, Ref. RB | 6.75 | % | 07/01/39 | 1,500 | 1,604,355 | |||||||||||
Alameda (County of) Joint Powers Authority (Juvenile Justice Refunding); Series 2008 A, Lease RB (INS–AGM)(c) | 5.00 | % | 12/01/25 | 750 | 826,920 | |||||||||||
| Alhambra (City of) (Atherton Baptist Homes); Series 2010 A, RB | 7.63 | % | 01/01/40 | 1,575 | 1,704,874 | |||||||||||
Alhambra Unified School District (Election of 1999); Series 1999 A, Unlimited Tax CAB GO Bonds (INS–AGM)(c)(d) | 0.00 | % | 09/01/20 | 1,925 | 1,449,313 | |||||||||||
Alvord Unified School District (Election of 2007); Series 2008 A, Unlimited Tax GO Bonds (INS–AGM)(c) | 5.00 | % | 08/01/28 | 590 | 653,543 | |||||||||||
Anaheim (City of) Public Financing Authority (Anaheim Public Improvements); Series 1997 C, Sub. Lease RB (INS–AGM)(c) | 6.00 | % | 09/01/16 | 4,000 | 4,536,120 | |||||||||||
| Anaheim (City of) Public Financing Authority (Electric System Distribution Facilities); Series 2011 A, RB | 5.38 | % | 10/01/36 | 2,500 | 2,875,800 | |||||||||||
Antelope Valley Healthcare District; Series 1997 A, Ref. RB (INS–AGM)(c) | 5.20 | % | 01/01/20 | 4,000 | 4,010,120 | |||||||||||
Apple Valley (Town of) Public Financing Authority (Town Hall Annex); Series 2007 A, Lease RB (INS–AMBAC)(c) | 5.00 | % | 09/01/27 | 2,365 | 2,562,809 | |||||||||||
Arcadia Unified School District (Election of 2006); Series 2007 A, Unlimited Tax GO Bonds (INS–AGM)(c) | 5.00 | % | 08/01/37 | 1,500 | 1,597,740 | |||||||||||
Bakersfield (City of); Series 2007 A, Wastewater RB (INS–AGM)(c) | 5.00 | % | 09/15/32 | 2,215 | 2,385,134 | |||||||||||
Bay Area Governments Association (California Capital); Series 2001 A, Lease RB (INS–AMBAC)(c) | 5.25 | % | 07/01/17 | 1,430 | 1,540,010 | |||||||||||
Bay Area Governments Association (West Sacramento); Series 2004 A, Lease RB (INS–SGI)(c) | 5.00 | % | 09/01/29 | 2,735 | 2,811,744 | |||||||||||
| Bay Area Toll Authority (San Francisco Bay Area); | ||||||||||||||||
Series 2008 F-1, Toll Bridge RB(e) | 5.00 | % | 04/01/39 | 1,250 | 1,338,888 | |||||||||||
| Series 2008 F-1, Toll Bridge RB | 5.00 | % | 04/01/39 | 2,500 | 2,677,775 | |||||||||||
Series 2009 F-1, Toll Bridge RB(e) | 5.25 | % | 04/01/26 | 4,685 | 5,461,820 | |||||||||||
Series 2009 F-1, Toll Bridge RB(e) | 5.25 | % | 04/01/29 | 5,205 | 5,953,063 | |||||||||||
Series 2009 F-1, Toll Bridge RB(e) | 5.13 | % | 04/01/39 | 1,500 | 1,634,025 | |||||||||||
| Beverly Hills Unified School District (Election of 2008); | ||||||||||||||||
Series 2009, Unlimited Tax CAB GO Bonds(d) | 0.00 | % | 08/01/26 | 1,465 | 862,782 | |||||||||||
Series 2009, Unlimited Tax CAB GO Bonds(d) | 0.00 | % | 08/01/32 | 3,045 | 1,245,679 | |||||||||||
Bonita Unified School District (Election of 2004); Series 2004 A, Unlimited Tax GO Bonds(f)(g) | 5.00 | % | 08/01/14 | 1,000 | 1,080,920 | |||||||||||
Brea Olinda Unified School District; Series 2002 A, Ref. COP (INS–AGM)(c) | 5.50 | % | 08/01/18 | 1,850 | 1,875,881 | |||||||||||
California (State of) Department of Water Resources (Central Valley); Series 2003 Y, Water System RB (INS–NATL)(c) | 5.00 | % | 12/01/25 | 5,000 | 5,255,000 | |||||||||||
| California (State of) Educational Facilities Authority (California College of the Arts); Series 2005, RB | 5.00 | % | 06/01/35 | 2,000 | 1,847,300 | |||||||||||
| California (State of) Educational Facilities Authority (Chapman University); Series 2011, RB | 5.00 | % | 04/01/31 | 1,250 | 1,365,838 | |||||||||||
California (State of) Educational Facilities Authority (Claremont McKenna College); Series 2007, RB(e) | 5.00 | % | 01/01/38 | 2,100 | 2,266,677 | |||||||||||
| California (State of) Educational Facilities Authority (Pitzer College); | ||||||||||||||||
| Series 2005 A, RB | 5.00 | % | 04/01/35 | 2,000 | 2,040,300 | |||||||||||
| Series 2009, RB | 6.00 | % | 04/01/40 | 2,000 | 2,285,160 | |||||||||||
California (State of) Educational Facilities Authority (University of Southern California); Series 2009 B, RB(e) | 5.25 | % | 10/01/39 | 1,800 | 2,032,992 | |||||||||||
| California (State of) Health Facilities Financing Authority (Adventist Health System West); Series 2009 A, RB | 5.75 | % | 09/01/39 | 500 | 557,450 | |||||||||||
| California (State of) Health Facilities Financing Authority (Catholic Healthcare West); | ||||||||||||||||
| Series 2009 A, RB | 6.00 | % | 07/01/39 | 500 | 573,465 | |||||||||||
| Series 2011 A, RB | 5.25 | % | 03/01/41 | 2,500 | 2,665,200 | |||||||||||
California (State of) Health Facilities Financing Authority (Children’s Hospital Los Angeles); Series 2010, RB (INS–AGM)(c) | 5.25 | % | 07/01/38 | 2,950 | 3,086,585 | |||||||||||
| California (State of) Health Facilities Financing Authority (Kaiser Permanente); Series 2006 A, RB | 5.25 | % | 04/01/39 | 2,000 | 2,083,780 | |||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 Invesco California Tax-Free Income Fund
| Principal | ||||||||||||||||
| Interest | Maturity | Amount | ||||||||||||||
| Rate | Date | (000) | Value | |||||||||||||
California–(continued) | ||||||||||||||||
| California (State of) Health Facilities Financing Authority (Providence Health & Services); | ||||||||||||||||
Series 2008, RB(f)(g) | 6.50 | % | 10/01/18 | $ | 20 | $ | 26,899 | |||||||||
| Series 2008, RB | 6.50 | % | 10/01/38 | 980 | 1,153,205 | |||||||||||
| California (State of) Health Facilities Financing Authority (Scripps Health); Series 2010 A, RB | 5.00 | % | 11/15/36 | 4,000 | 4,264,280 | |||||||||||
California (State of) Health Facilities Financing Authority (Stanford Hospital); Series 2008 A-2, Ref. RB | 5.25 | % | 11/15/40 | 2,000 | 2,203,660 | |||||||||||
| California (State of) Health Facilities Financing Authority (Sutter Health); Series 2011 B, RB | 5.50 | % | 08/15/26 | 1,000 | 1,191,760 | |||||||||||
| California (State of) Municipal Finance Authority (American Heritage Education Foundation); Series 2006 A, Education RB | 5.25 | % | 06/01/26 | 1,000 | 933,260 | |||||||||||
| California (State of) Municipal Finance Authority (Caritas); Series 2012 A, Mobile Home Park RB | 5.50 | % | 08/15/47 | 1,500 | 1,485,000 | |||||||||||
| California (State of) Municipal Finance Authority (Community Hospitals of Central California Obligated Group); | ||||||||||||||||
| Series 2007, COP | 5.00 | % | 02/01/20 | 2,055 | 2,164,696 | |||||||||||
| Series 2007, COP | 5.25 | % | 02/01/37 | 500 | 500,835 | |||||||||||
| California (State of) Municipal Finance Authority (Eisenhower Medical Center); | ||||||||||||||||
| Series 2010 A, RB | 5.50 | % | 07/01/30 | 1,000 | 1,051,430 | |||||||||||
| Series 2010 A, RB | 5.75 | % | 07/01/40 | 1,500 | 1,568,025 | |||||||||||
| California (State of) Municipal Finance Authority (Emerson College); Series 2011, RB | 5.75 | % | 01/01/33 | 1,315 | 1,453,233 | |||||||||||
| California (State of) Municipal Finance Authority (University of La Verne); Series 2010 A, RB | 6.13 | % | 06/01/30 | 1,000 | 1,099,360 | |||||||||||
California (State of) Pollution Control Financing Authority (Waste Management Inc.); Series 2002 A, Ref. Solid Waste Disposal RB(h) | 5.00 | % | 01/01/22 | 2,000 | 2,098,440 | |||||||||||
| California (State of) Public Works Board (Various Capital); Series 2011 A, Lease RB | 5.13 | % | 10/01/31 | 2,000 | 2,163,580 | |||||||||||
| California (State of) Statewide Communities Development Authority (Adventist Health System/West); Series 2005 A, Health Facility RB | 5.00 | % | 03/01/30 | 5,000 | 5,113,950 | |||||||||||
| California (State of) Statewide Communities Development Authority (Alliance for College-Ready Public Schools); Series 2012, School Facility RB | 6.10 | % | 07/01/32 | 820 | 823,969 | |||||||||||
| California (State of) Statewide Communities Development Authority (American Baptist Homes of the West); Series 2010, RB | 6.25 | % | 10/01/39 | 2,000 | 2,116,700 | |||||||||||
| California (State of) Statewide Communities Development Authority (California Baptist University); Series 2007 A, RB | 5.40 | % | 11/01/27 | 1,785 | 1,749,746 | |||||||||||
| California (State of) Statewide Communities Development Authority (Cedars Sinai Medical Center); Series 1992, Hospital COP | 6.50 | % | 08/01/12 | 295 | 300,109 | |||||||||||
| California (State of) Statewide Communities Development Authority (Cottage Health System Obligated Group); Series 2010, RB | 5.25 | % | 11/01/30 | 1,675 | 1,879,886 | |||||||||||
| California (State of) Statewide Communities Development Authority (John Muir Health); Series 2006 A, RB | 5.00 | % | 08/15/28 | 765 | 827,271 | |||||||||||
California (State of) Statewide Communities Development Authority (Methodist Hospital); Series 2009, RB (INS–FHA)(c) | 6.75 | % | 02/01/38 | 500 | 599,065 | |||||||||||
| California (State of) Statewide Communities Development Authority (Southern California Presbyterian Homes); | ||||||||||||||||
| Series 2009, Senior Living RB | 6.25 | % | 11/15/19 | 2,000 | 2,193,940 | |||||||||||
| Series 2009, Senior Living RB | 7.25 | % | 11/15/41 | 500 | 556,490 | |||||||||||
| California (State of) Statewide Communities Development Authority (University of California–Irvine East Campus Apartments); Series 2012, Ref. Student Housing RB | 5.38 | % | 05/15/38 | 2,000 | 2,089,200 | |||||||||||
| California (State of); | ||||||||||||||||
Series 1992, Unlimited Tax GO Bonds (INS–FGIC)(c) | 6.25 | % | 09/01/12 | 310 | 317,009 | |||||||||||
| Series 2009, Various Purpose Unlimited Tax GO Bonds | 5.75 | % | 04/01/31 | 5,000 | 5,835,550 | |||||||||||
| Series 2009, Various Purpose Unlimited Tax GO Bonds | 6.00 | % | 11/01/35 | 1,750 | 2,059,435 | |||||||||||
| Series 2009, Various Purpose Unlimited Tax GO Bonds | 6.00 | % | 04/01/38 | 1,250 | 1,450,175 | |||||||||||
| Series 2010, Unlimited Tax GO Bonds | 5.25 | % | 11/01/40 | 3,000 | 3,273,510 | |||||||||||
| Series 2010, Various Purpose Unlimited Tax GO Bonds | 5.50 | % | 03/01/40 | 1,000 | 1,110,200 | |||||||||||
| Series 2011, Various Purpose Unlimited Tax GO Bonds | 5.00 | % | 09/01/32 | 2,450 | 2,704,310 | |||||||||||
| Series 2011, Various Purpose Unlimited Tax GO Bonds | 5.00 | % | 10/01/41 | 2,500 | 2,673,750 | |||||||||||
| California County Tobacco Securitization Agency (The) (Los Angeles County Securitization Corp.); Series 2006, Tobacco Settlement Conv. Asset-Backed RB | 5.45 | % | 06/01/28 | 5,000 | 4,021,550 | |||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco California Tax-Free Income Fund
| Principal | ||||||||||||||||
| Interest | Maturity | Amount | ||||||||||||||
| Rate | Date | (000) | Value | |||||||||||||
California–(continued) | ||||||||||||||||
| California Infrastructure & Economic Development Bank (Broad Museum); Series 2011 A, RB | 5.00 | % | 06/01/21 | $ | 3,000 | $ | 3,736,260 | |||||||||
California Infrastructure & Economic Development Bank (California Science Center Phase II); Series 2006 B, RB (INS–NATL)(c) | 5.00 | % | 05/01/31 | 2,000 | 2,031,440 | |||||||||||
California Infrastructure & Economic Development Bank (Pacific Gas & Electric Co.); Series 2009 B, Ref. VRD RB (LOC–Mizuho Corporate Bank)(a)(b) | 0.13 | % | 11/01/26 | 2,100 | 2,100,000 | |||||||||||
California Special Districts Association Finance Corp. (Special Districts Finance Program); Series 1997 DD, COP (INS–AGM)(c) | 5.63 | % | 01/01/27 | 1,050 | 1,050,851 | |||||||||||
| California State University; | ||||||||||||||||
Series 2008 A, Systemwide RB (INS–AGM)(c) | 5.00 | % | 11/01/39 | 1,400 | 1,495,158 | |||||||||||
Series 2009 A, Systemwide RB (INS–AGC)(c) | 5.25 | % | 11/01/38 | 1,000 | 1,104,430 | |||||||||||
Castaic Lake Water Agency (Water System Improvement); Series 1994 A, Ref. COP (INS–NATL)(c) | 7.00 | % | 08/01/12 | 2,000 | 2,054,920 | |||||||||||
Chino Basin Regional Financing Authority (Inland Empire Utilities Agency); Series 2008 A, RB (INS–AMBAC)(c) | 5.00 | % | 11/01/33 | 725 | 765,383 | |||||||||||
Clovis Unified School District (Election of 2004); Series 2004 A, Unlimited Tax CAB GO Bonds (INS–NATL)(c)(d) | 0.00 | % | 08/01/29 | 735 | 324,128 | |||||||||||
| Corona-Norco Unified School District (Election of 2006); | ||||||||||||||||
Series 2009, Unlimited Tax CAB GO Bonds (INS–AGC)(c)(d) | 0.00 | % | 08/01/24 | 1,000 | 613,800 | |||||||||||
Series 2009, Unlimited Tax CAB GO Bonds (INS–AGC)(c)(d) | 0.00 | % | 08/01/25 | 1,000 | 582,130 | |||||||||||
Series 2009, Unlimited Tax CAB GO Bonds (INS–AGC)(c)(d) | 0.00 | % | 08/01/26 | 1,525 | 836,798 | |||||||||||
Desert Community College District (Election of 2004); Series 2007 C, Unlimited Tax GO Bonds (INS–AGM)(c) | 5.00 | % | 08/01/37 | 2,500 | 2,677,925 | |||||||||||
| Duarte (City of) (City of Hope National Medical Center); Series 1999 A, COP | 5.25 | % | 04/01/19 | 2,500 | 2,505,500 | |||||||||||
| East Bay Municipal Utility District; Series 2010 A, Ref. Sub. Water System RB | 5.00 | % | 06/01/36 | 2,000 | 2,286,560 | |||||||||||
| Eden (Township of) Healthcare District; Series 2010, COP | 6.13 | % | 06/01/34 | 1,000 | 1,068,620 | |||||||||||
El Dorado (County of) Irrigation District; Series 2009 A, COP (INS–AGC)(c) | 5.75 | % | 08/01/39 | 1,000 | 1,078,920 | |||||||||||
El Monte Union High School District (Election of 2008); Series 2009 A, Unlimited Tax GO Bonds (INS–AGC)(c) | 5.50 | % | 06/01/34 | 1,000 | 1,131,560 | |||||||||||
El Segundo Unified School District (Election of 2008); Series 2009 A, Unlimited Tax CAB GO Bonds(d) | 0.00 | % | 08/01/33 | 4,430 | 1,443,072 | |||||||||||
| Fairfield (City of) Community Facilities District No. 3 (North Cordelia General Improvements); Series 2008, Special Tax RB | 6.00 | % | 09/01/32 | 1,200 | 1,298,088 | |||||||||||
Fontana (City of) Public Financing Authority (North Fontana Redevelopment); Series 2003 A, Tax Allocation RB (INS–AMBAC)(c) | 5.38 | % | 09/01/25 | 1,500 | 1,514,280 | |||||||||||
Fontana (City of) Redevelopment Agency (Downtown Redevelopment); Series 2000, Ref. Tax Allocation RB (INS–NATL)(c) | 5.00 | % | 09/01/21 | 1,480 | 1,480,666 | |||||||||||
Foothill-Eastern Transportation Corridor Agency; Series 1999, Ref. Toll Road RB (INS–NATL)(c) | 5.13 | % | 01/15/19 | 4,000 | 3,999,920 | |||||||||||
| Fresno Unified School District; | ||||||||||||||||
Series 1999 C, Ref. Unlimited Tax GO Bonds (INS–NATL)(c) | 5.90 | % | 08/01/17 | 590 | 701,658 | |||||||||||
Series 1999 C, Ref. Unlimited Tax GO Bonds (INS–NATL)(c) | 5.90 | % | 08/01/18 | 630 | 756,680 | |||||||||||
Series 1999 C, Ref. Unlimited Tax GO Bonds (INS–NATL)(c) | 5.90 | % | 08/01/19 | 675 | 814,091 | |||||||||||
Series 1999 C, Ref. Unlimited Tax GO Bonds (INS–NATL)(c) | 5.90 | % | 08/01/20 | 720 | 870,250 | |||||||||||
| Gilroy Unified School District (Election of 2008); | ||||||||||||||||
Series 2009 A, Unlimited Tax CAB GO Bonds (INS–AGC)(c)(d) | 0.00 | % | 08/01/29 | 5,350 | 2,257,272 | |||||||||||
Series 2009 A, Unlimited Tax CAB GO Bonds (INS–AGC)(c)(d) | 0.00 | % | 08/01/31 | 3,650 | 1,355,683 | |||||||||||
Glendora (City of) Public Finance Authority; Series 2003 A, Project No. One Tax Allocation RB (INS–NATL)(c) | 5.00 | % | 09/01/24 | 2,425 | 2,438,168 | |||||||||||
Grossmont Union High School District (Election of 2004); Series 2006, Unlimited Tax CAB GO Bonds (INS–NATL)(c)(d) | 0.00 | % | 08/01/24 | 6,750 | 4,143,150 | |||||||||||
Hanford Joint Union High School District (Election of 1998); Series 2004 C, Unlimited Tax GO Bonds (INS–NATL)(c) | 5.70 | % | 08/01/28 | 2,230 | 2,399,435 | |||||||||||
Hawaiian Gardens (City of) Redevelopment Agency; Series 2006 A, Project No. One Tax Allocation RB (INS–AMBAC)(c) | 5.00 | % | 12/01/25 | 2,275 | 2,248,109 | |||||||||||
| Independent Cities Lease Finance Authority (San Juan Mobile Estates); Series 2006 A, Mobile Home Park RB | 5.13 | % | 05/15/41 | 2,000 | 1,913,800 | |||||||||||
Inglewood (City of) Redevelopment Agency (Merged Redevelopment); Series 1998 A, Ref. Tax Allocation RB (INS–AMBAC)(c) | 5.25 | % | 05/01/23 | 1,000 | 1,061,610 | |||||||||||
Irvine (City of) Public Facilities & Infrastructure Authority; Series 2002 B, Special Assessment RB (INS–AMBAC)(c) | 5.00 | % | 09/02/23 | 1,670 | 1,679,736 | |||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco California Tax-Free Income Fund
| Principal | ||||||||||||||||
| Interest | Maturity | Amount | ||||||||||||||
| Rate | Date | (000) | Value | |||||||||||||
California–(continued) | ||||||||||||||||
Irvine Unified School District (Community Facilities District No. 06-1- Portola Springs); Series 2010, Special Tax RB | 6.70 | % | 09/01/35 | $ | 515 | $ | 573,169 | |||||||||
Kern (County of) (Capital Improvements); Series 2009 A, COP (INS–AGC)(c) | 5.75 | % | 08/01/35 | 1,000 | 1,113,500 | |||||||||||
Kern (County of) Water Agency Improvement District No. 4; Series 2008 A, COP (INS–AGC)(c) | 5.00 | % | 05/01/28 | 1,700 | 1,885,657 | |||||||||||
Lodi (City of); Series 2007 A, Wastewater System Revenue COP (INS–AGM)(c) | 5.00 | % | 10/01/37 | 1,000 | 1,063,760 | |||||||||||
Long Beach (City of) Financing Authority; Series 1992, RB (INS–AMBAC)(c) | 6.00 | % | 11/01/17 | 17,620 | 19,066,250 | |||||||||||
| �� | ||||||||||||||||
| Long Beach (City of); Series 2010 A, Sr. Airport RB | 5.00 | % | 06/01/40 | 2,500 | 2,624,800 | |||||||||||
Los Angeles (City of) (FHA Insured Mortgage Loans–Section 8 Assisted); Series 1997 A, Ref. Mortgage RB (INS–NATL)(c) | 6.10 | % | 07/01/25 | 510 | 510,887 | |||||||||||
| Los Angeles (City of) Department of Airports (Los Angeles International Airport); | ||||||||||||||||
| Series 2010 A, Sr. RB | 5.00 | % | 05/15/35 | 2,500 | 2,779,625 | |||||||||||
| Series 2010 B, Sub. RB | 5.00 | % | 05/15/40 | 1,000 | 1,091,650 | |||||||||||
| Los Angeles (City of) Department of Water & Power; | ||||||||||||||||
Series 2004 C, Water System RB (INS–NATL)(c) | 5.00 | % | 07/01/26 | 1,000 | 1,078,570 | |||||||||||
Series 2011 A, Power System RB(e) | 5.00 | % | 07/01/22 | 1,800 | 2,217,348 | |||||||||||
| Series 2011 A, Water System RB | 5.25 | % | 07/01/39 | 1,500 | 1,715,790 | |||||||||||
Subseries 2006 A-1, Water System RB (INS–AMBAC)(c) | 5.00 | % | 07/01/36 | 1,485 | 1,584,658 | |||||||||||
Subseries 2007 A-1, Power System RB (INS–AMBAC)(c) | 5.00 | % | 07/01/37 | 1,000 | 1,078,230 | |||||||||||
Subseries 2008 A-1, Power System RB | 5.25 | % | 07/01/38 | 2,000 | 2,283,600 | |||||||||||
Los Angeles (City of); Series 2003 B, Ref. Wastewater System RB (INS–AGM)(c) | 5.00 | % | 06/01/22 | 5,000 | 5,277,450 | |||||||||||
Los Angeles (County of) (Disney Parking Ref.); Series 1998, COP (INS–AMBAC)(c) | 4.75 | % | 03/01/23 | 1,000 | 1,000,020 | |||||||||||
Los Angeles (County of) Metropolitan Transportation Authority; Series 2005 A, Proposition A First Tier Sr. Sales Tax RB (INS–AMBAC)(c) | 5.00 | % | 07/01/35 | 1,000 | 1,104,830 | |||||||||||
Los Angeles Community College District (Election of 2003); Series 2008 F-1, Unlimited Tax GO Bonds(e) | 5.00 | % | 08/01/33 | 2,000 | 2,217,860 | |||||||||||
Los Angeles County Schools Regionalized Business Services Corp. (Los Angeles County Schools Pooled Financing Program); Series 1999 A, CAB COP (INS–AMBAC)(c)(d) | 0.00 | % | 08/01/24 | 1,265 | 609,667 | |||||||||||
| Los Angeles Unified School District (Election of 2004); | ||||||||||||||||
Series 2007 H, Unlimited Tax GO Bonds (INS–AGM)(c) | 5.00 | % | 07/01/32 | 1,000 | 1,099,810 | |||||||||||
Series 2009-I, Unlimited Tax GO Bonds (INS–AGC)(c) | 5.00 | % | 01/01/34 | 3,000 | 3,320,610 | |||||||||||
Madera (County of) (Valley Children’s Hospital); Series 1995, COP (INS–NATL)(c) | 6.50 | % | 03/15/15 | 4,780 | 5,062,833 | |||||||||||
Menifee Union School District (Election of 2008); Series 2009 C, Unlimited Tax CAB GO Bonds (INS–AGC)(c)(d) | 0.00 | % | 08/01/35 | 940 | 265,879 | |||||||||||
Monrovia (City of) Financing Authority (Hillside Wilderness Preserve); Series 2002, Lease RB (INS–AMBAC)(c) | 5.00 | % | 12/01/20 | 1,105 | 1,148,592 | |||||||||||
Montclair (City of) Redevelopment Agency (Montclair Redevelopment Project No. V); Series 2001, Ref. Tax Allocation RB (INS–NATL)(c) | 5.00 | % | 10/01/20 | 1,840 | 1,843,091 | |||||||||||
Montebello Unified School District (Election of 2004); Series 2009 A-1, Unlimited Tax GO Bonds (INS–AGC)(c) | 5.25 | % | 08/01/34 | 1,000 | 1,090,620 | |||||||||||
Moorpark Unified School District (Election of 2008); Series 2009 A, Unlimited Tax CAB GO Bonds (INS–AGC)(c)(d) | 0.00 | % | 08/01/31 | 840 | 306,726 | |||||||||||
Morongo Band of Mission Indians (The) (Enterprise Casino); Series 2008 B, RB(i) | 6.50 | % | 03/01/28 | 1,000 | 985,550 | |||||||||||
Mountain View (City of) Shoreline Regional Park Community; Series 2001 A, Tax Allocation RB (INS–NATL)(c) | 5.25 | % | 08/01/16 | 1,570 | 1,581,665 | |||||||||||
| National City (City of) Community Development Commission (National City Redevelopment); Series 2011, Tax Allocation RB | 7.00 | % | 08/01/32 | 1,500 | 1,763,265 | |||||||||||
Norco (City of) Financing Authority; Series 2009, Ref. Enterprise RB (INS–AGM)(c) | 5.63 | % | 10/01/34 | 1,000 | 1,123,160 | |||||||||||
Oakland (City of) Joint Powers Financing Authority (Oakland Administration Buildings); Series 2008 B, Ref. Lease RB (INS–AGC)(c) | 5.00 | % | 08/01/26 | 1,215 | 1,316,513 | |||||||||||
| Oakland (Port of); | ||||||||||||||||
Series 2002 L, RB(f)(g)(h) | 5.00 | % | 11/01/21 | 110 | 113,446 | |||||||||||
Series 2002 L, RB (INS–NATL)(c)(h) | 5.00 | % | 11/01/21 | 890 | 908,485 | |||||||||||
Oceanside (City of); Series 2003 A, Ref. COP (INS–AMBAC)(c) | 5.20 | % | 04/01/23 | 1,300 | 1,329,926 | |||||||||||
Palm Springs (City of) Financing Authority (Convention Center); Series 2001A, Ref. Lease RB (INS–NATL)(c) | 5.25 | % | 11/01/19 | 1,340 | 1,354,995 | |||||||||||
| Palomar Pomerado Health; Series 2009, COP | 6.75 | % | 11/01/39 | 2,000 | 2,149,640 | |||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco California Tax-Free Income Fund
| Principal | ||||||||||||||||
| Interest | Maturity | Amount | ||||||||||||||
| Rate | Date | (000) | Value | |||||||||||||
California–(continued) | ||||||||||||||||
Panama-Buena Vista Union School District (School Construction); Series 2006, COP (INS–NATL)(c) | 5.00 | % | 09/01/30 | $ | 1,045 | $ | 1,089,224 | |||||||||
Paramount Unified School District (Election of 2006); Series 2007, Unlimited Tax GO Bonds (INS–AGM)(c) | 5.25 | % | 08/01/30 | 1,600 | 1,753,280 | |||||||||||
| Patterson Joint Unified School District (Election of 2008); | ||||||||||||||||
Series 2009 B, Unlimited Tax CAB GO Bonds (INS–AGM)(c)(d) | 0.00 | % | 08/01/44 | 6,250 | 956,188 | |||||||||||
Series 2009 B, Unlimited Tax CAB GO Bonds (INS–AGM)(c)(d) | 0.00 | % | 08/01/45 | 6,715 | 929,490 | |||||||||||
Series 2009 B, Unlimited Tax CAB GO Bonds (INS–AGM)(c)(d) | 0.00 | % | 08/01/46 | 7,050 | 955,839 | |||||||||||
Series 2009 B, Unlimited Tax CAB GO Bonds (INS–AGM)(c)(d) | 0.00 | % | 08/01/47 | 1,700 | 216,971 | |||||||||||
Pittsburg Unified School District (Election of 2006); Series 2009 B, Unlimited Tax GO Bonds (INS–AGM)(c) | 5.50 | % | 08/01/31 | 1,000 | 1,141,580 | |||||||||||
| Pomona (City of) Public Financing Authority (Merged Redevelopment); | ||||||||||||||||
Series 2001 AD, Tax Allocation RB (INS–NATL)(c) | 5.00 | % | 02/01/15 | 2,020 | 2,023,575 | |||||||||||
Series 2001 AD, Tax Allocation RB (INS–NATL)(c) | 5.00 | % | 02/01/16 | 1,110 | 1,111,698 | |||||||||||
| Series 2007 AW, Sub. RB | 5.13 | % | 02/01/33 | 1,000 | 945,370 | |||||||||||
Port Hueneme (City of) (Capital Improvement Program); Series 1992, Ref. COP (INS–NATL)(c) | 6.00 | % | 04/01/19 | 1,360 | 1,542,553 | |||||||||||
Poway Unified School District (Election of 2008–School Facilities Improvement District No. 2007-1); Series 2009 A, Unlimited Tax CAB GO Bonds(d) | 0.00 | % | 08/01/32 | 6,460 | 2,312,099 | |||||||||||
Rancho Cucamonga (City of) Redevelopment Agency (Rancho Redevelopment Housing Set Aside) Series 2007 A, Tax Allocation RB (INS–NATL)(c) | 5.00 | % | 09/01/34 | 1,000 | 1,000,000 | |||||||||||
Rancho Cucamonga (City of) Redevelopment Agency (Rancho Redevelopment); Series 2001, Tax Allocation RB (INS–NATL)(c) | 5.38 | % | 09/01/25 | 3,000 | 3,001,770 | |||||||||||
Rancho Mirage (City of) Joint Powers Financing Authority (Eisenhower Medical Center); Series 1997 B, COP (INS–NATL)(c) | 4.88 | % | 07/01/22 | 1,000 | 1,021,850 | |||||||||||
Redding (City of) Redevelopment Agency (Canby-Hilltop-Cypress Redevelopment); Series 2003 A, Tax Allocation RB (INS–NATL)(c) | 5.00 | % | 09/01/23 | 1,400 | 1,417,360 | |||||||||||
| Regents of the University of California; | ||||||||||||||||
| Series 2009 E, Medical Center Pooled RB | 5.50 | % | 05/15/27 | 2,500 | 2,786,625 | |||||||||||
Series 2009 O, General RB(e) | 5.75 | % | 05/15/23 | 705 | 881,476 | |||||||||||
Series 2009 O, General RB(e) | 5.75 | % | 05/15/25 | 1,050 | 1,296,477 | |||||||||||
Series 2009 Q, General RB(e)(j) | 5.00 | % | 05/15/34 | 920 | 1,008,752 | |||||||||||
Riverside (City of); Series 2008 D, Electric RB (INS–AGM)(c) | 5.00 | % | 10/01/28 | 500 | 557,000 | |||||||||||
| Riverside (City of); | ||||||||||||||||
Series 2008 B, Water RB (INS–AGM)(c) | 5.00 | % | 10/01/33 | 1,000 | 1,101,460 | |||||||||||
Series 2008 D, Electric RB (INS–AGM)(c) | 5.00 | % | 10/01/38 | 1,800 | 1,925,334 | |||||||||||
| Riverside (County of) Transportation Commission; Series 2010 A, Limited Sales Tax RB | 5.00 | % | 06/01/32 | 1,500 | 1,664,010 | |||||||||||
| Roseville Joint Union High School District (Election of 2004); | ||||||||||||||||
Series 2007 C, Unlimited Tax CAB GO Bonds (INS–AGM)(c)(d) | 0.00 | % | 08/01/24 | 2,515 | 1,506,560 | |||||||||||
Series 2007 C, Unlimited Tax CAB GO Bonds (INS–AGM)(c)(d) | 0.00 | % | 08/01/25 | 1,970 | 1,134,799 | |||||||||||
Series 2007 C, Unlimited Tax CAB GO Bonds (INS–AGM)(c)(d) | 0.00 | % | 08/01/26 | 1,350 | 711,869 | |||||||||||
| Sacramento (City of) Municipal Utility District; Series 2011 X, Ref. Electric RB | 5.00 | % | 08/15/27 | 2,150 | 2,454,870 | |||||||||||
| Sacramento (County of) Sanitation Districts Financing Authority (Sacramento Regional County Sanitation District); | ||||||||||||||||
Series 2006, RB (INS–NATL)(c) | 5.00 | % | 12/01/29 | 2,000 | 2,245,720 | |||||||||||
Series 2008 A, Ref. VRD Sub. Lien RB (LOC–JPMorgan Chase Bank, N.A.)(a)(b) | 0.14 | % | 12/01/36 | 2,965 | 2,965,000 | |||||||||||
| Series 2011 A, Ref. RB | 5.00 | % | 12/01/26 | 1,500 | 1,802,085 | |||||||||||
| Sacramento (County of); | ||||||||||||||||
Series 2008 A, Sr. Airport System RB (INS–AGM)(c) | 5.00 | % | 07/01/32 | 1,000 | 1,066,700 | |||||||||||
Series 2008 A, Sr. Airport System RB (INS–AGM)(c) | 5.00 | % | 07/01/41 | 1,015 | 1,070,987 | |||||||||||
| Series 2010, Sr. Airport System RB | 5.00 | % | 07/01/40 | 2,200 | 2,331,362 | |||||||||||
| San Buenaventura (City of) (Community Memorial Health System); Series 2011, RB | 7.50 | % | 12/01/41 | 2,000 | 2,255,120 | |||||||||||
San Diego (City of) Public Facilities Financing Authority (Southcrest & Central Imperial Redevelopment); Series 2007 B, Pooled Financing Tax Allocation RB (INS–Radian)(c) | 5.25 | % | 10/01/27 | 2,535 | 2,576,574 | |||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco California Tax-Free Income Fund
| Principal | ||||||||||||||||
| Interest | Maturity | Amount | ||||||||||||||
| Rate | Date | (000) | Value | |||||||||||||
California–(continued) | ||||||||||||||||
San Diego Community College District (Election of 2002); Series 2009, Unlimited Tax GO Bonds(e) | 5.25 | % | 08/01/33 | $ | 1,500 | $ | 1,735,470 | |||||||||
| San Diego Community College District (Election of 2006); Series 2011, Unlimited Tax GO Bonds | 5.00 | % | 08/01/31 | 2,500 | 2,893,225 | |||||||||||
San Francisco (City & County of) (Laguna Honda Hospital); Series 2005 I, Unlimited Tax GO Bonds(f)(g) | 5.00 | % | 06/15/12 | 8,000 | 8,273,120 | |||||||||||
| San Francisco (City & County of) Airport Commission (San Francisco International Airport); | ||||||||||||||||
| Series 2009 E, Second Series RB | 6.00 | % | 05/01/39 | 1,000 | 1,156,960 | |||||||||||
Series 2011 C, Ref. Second Series RB(h) | 5.00 | % | 05/01/23 | 5,000 | 5,731,250 | |||||||||||
| Series 2011 G, Second Series RB | 5.25 | % | 05/01/28 | 2,000 | 2,334,840 | |||||||||||
| San Francisco (City & County of) Public Utilities Commission (Water System Improvement Program); Subseries 2011 A, Water RB | 5.00 | % | 11/01/36 | 4,000 | 4,507,760 | |||||||||||
| San Francisco (City & County of) Redevelopment Financing Authority (Mission Bay North Redevelopment); Series 2011 C, Tax Allocation RB | 6.75 | % | 08/01/41 | 1,000 | 1,128,440 | |||||||||||
| San Francisco (City & County of) Redevelopment Financing Authority (Mission Bay South Redevelopment); Series 2011 D, Tax Allocation RB | 7.00 | % | 08/01/33 | 500 | 569,315 | |||||||||||
San Jose Evergreen Community College District (Election of 2004); Series 2008 B, Unlimited Tax CAB GO Bonds (INS–AGM)(c)(d) | 0.00 | % | 09/01/31 | 3,110 | 1,203,943 | |||||||||||
San Leandro (City of) (Joint Project Area Financing); Series 2001, COP (INS–NATL)(c) | 5.10 | % | 12/01/26 | 1,000 | 1,009,940 | |||||||||||
San Luis Obispo (County of) Financing Authority (Lopez Dam Improvement); Series 2011 A, Ref. RB (INS–AGM)(c) | 5.00 | % | 08/01/30 | 1,500 | 1,663,335 | |||||||||||
| Santa Clara (County of) Financing Authority (Multiple Facilities); Series 2008 L, Ref. Lease RB | 5.25 | % | 05/15/36 | 3,000 | 3,298,530 | |||||||||||
| Santa Monica Community College District (Election of 2002); | ||||||||||||||||
Series 2007 A, Unlimited Tax CAB GO Bonds (INS–NATL)(c)(d) | 0.00 | % | 08/01/23 | 1,385 | 910,319 | |||||||||||
Series 2007 A, Unlimited Tax CAB GO Bonds (INS–NATL)(c)(d) | 0.00 | % | 08/01/24 | 1,385 | 864,739 | |||||||||||
Series 2007 A, Unlimited Tax CAB GO Bonds (INS–NATL)(c)(d) | 0.00 | % | 08/01/25 | 1,380 | 820,438 | |||||||||||
| Santaluz Community Facilities District No. 2 (Improvement Area No. 1); | ||||||||||||||||
| Series 2011 A, Ref. Special Tax RB | 5.00 | % | 09/01/28 | 830 | 876,596 | |||||||||||
| Series 2011 A, Ref. Special Tax RB | 5.00 | % | 09/01/29 | 715 | 755,712 | |||||||||||
| Series 2011 A, Ref. Special Tax RB | 5.10 | % | 09/01/30 | 465 | 491,356 | |||||||||||
Shafter (City of) Community Development Agency (Shafter Community Development Project Area No. 1); Series 2006 A, Ref. Tax Allocation RB (INS–AGM)(c) | 5.00 | % | 11/01/36 | 1,460 | 1,514,327 | |||||||||||
| Sierra View Local Health Care District; Series 2007, RB | 5.25 | % | 07/01/32 | 1,500 | 1,536,675 | |||||||||||
| Simi Valley Unified School District (Election of 2004); | ||||||||||||||||
Series 2007 C, Unlimited Tax CAB GO Bonds (INS–AGM)(c)(d) | 0.00 | % | 08/01/28 | 3,480 | 1,622,759 | |||||||||||
Series 2007 C, Unlimited Tax CAB GO Bonds (INS–AGM)(c)(d) | 0.00 | % | 08/01/30 | 2,765 | 1,217,374 | |||||||||||
South Gate (City of) Public Financing Authority (South Gate Redevelopment Project No. 1); Series 2002, Tax Allocation RB (INS–SGI)(c) | 5.75 | % | 09/01/22 | 1,000 | 1,028,070 | |||||||||||
| Southern California Logistics Airport Authority; Series 2007, Tax Allocation RB | 5.38 | % | 12/01/22 | 2,365 | 1,621,846 | |||||||||||
| Southern California Metropolitan Water District; | ||||||||||||||||
Series 2005 A, RB (INS–AGM)(c) | 5.00 | % | 07/01/35 | 1,520 | 1,684,145 | |||||||||||
Series 2009 B, Ref. RB(e) | 5.00 | % | 07/01/27 | 8,585 | 10,110,125 | |||||||||||
Southern California Public Power Authority (Mead-Adelanto); Series 1994 A, RB (INS–AMBAC)(c)(k) | 9.36 | % | 07/01/15 | 3,500 | 4,249,000 | |||||||||||
Southern California Public Power Authority (Mead-Phoenix); Series 1994 A, RB (INS–AMBAC)(c)(k) | 9.36 | % | 07/01/15 | 2,500 | 3,036,900 | |||||||||||
| Southern California Public Power Authority (Milford Wind Corridor Phase II); | ||||||||||||||||
Series 2011-1, RB(e) | 5.25 | % | 07/01/29 | 2,100 | 2,500,176 | |||||||||||
Series 2011-1, RB(e) | 5.25 | % | 07/01/31 | 2,100 | 2,466,387 | |||||||||||
Temecula (City of) Redevelopment Agency (Temecula Redevelopment Project No. 1); Series 2002, Tax Allocation RB (INS–NATL)(c) | 5.13 | % | 08/01/27 | 2,150 | 2,151,032 | |||||||||||
| Tustin (City of) Public Financing Authority; Series 2011 A, Water RB | 5.00 | % | 04/01/41 | 1,000 | 1,105,630 | |||||||||||
Tustin Unified School District (School Facilities Improvement District No. 2002-1- Election of 2002); Series 2008 C, Unlimited Tax GO Bonds (INS–AGM)(c) | 5.00 | % | 06/01/28 | 750 | 840,623 | |||||||||||
Twin Rivers Unified School District (School Facility Bridge Funding Program); Series 2007, COP (INS–AGM)(c)(f)(l) | 3.50 | % | 05/31/13 | 1,000 | 1,001,150 | |||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco California Tax-Free Income Fund
| Principal | ||||||||||||||||
| Interest | Maturity | Amount | ||||||||||||||
| Rate | Date | (000) | Value | |||||||||||||
California–(continued) | ||||||||||||||||
Twin Rivers Unified School District; Series 2009, Unlimited Tax CAB GO BAN(d) | 0.00 | % | 04/01/14 | $ | 1,700 | $ | 1,652,893 | |||||||||
Val Verde Unified School District; Series 2009 A, Ref. COP (INS–AGC)(c) | 5.13 | % | 03/01/36 | 1,475 | 1,562,113 | |||||||||||
| Vernon (City of); Series 2009 A, Electric System RB | 5.13 | % | 08/01/21 | 2,000 | 2,173,980 | |||||||||||
| Walnut (City of) Energy Center Authority; Series 2010 A, Ref. RB | 5.00 | % | 01/01/35 | 3,000 | 3,184,440 | |||||||||||
West Contra Costa Unified School District; Series 2005, Unlimited Tax CAB GO Bonds (INS–NATL)(c)(d) | 0.00 | % | 08/01/25 | 2,500 | 1,348,575 | |||||||||||
Western Riverside (County of) Water & Wastewater Financing Authority (Eastern Municipal Water District Improvement); Series 2009, RB (INS–AGC)(c) | 5.63 | % | 09/01/39 | 1,000 | 1,114,410 | |||||||||||
Yosemite Community College District (Election of 2004); Series 2008 C, Unlimited Tax CAB GO Bonds (INS–AGM)(c)(d) | 0.00 | % | 08/01/24 | 4,685 | 2,875,653 | |||||||||||
| 432,073,047 | ||||||||||||||||
| Guam–0.78% | ||||||||||||||||
| Guam (Territory of) (Section 30); | ||||||||||||||||
| Series 2009 A, Limited Obligation RB | 5.38 | % | 12/01/24 | 1,000 | 1,070,330 | |||||||||||
| Series 2009 A, Limited Obligation RB | 5.63 | % | 12/01/29 | 660 | 706,101 | |||||||||||
| Guam (Territory of); Series 2011 A, Business Privilege Tax RB | 5.13 | % | 01/01/42 | 1,500 | 1,629,075 | |||||||||||
| 3,405,506 | ||||||||||||||||
| Puerto Rico–4.87% | ||||||||||||||||
| Puerto Rico (Commonwealth of) Aqueduct & Sewer Authority; Series 2012 A, Sr. Lien RB | 5.13 | % | 07/01/37 | 2,500 | 2,503,000 | |||||||||||
| Puerto Rico (Commonwealth of) Electric Power Authority; | ||||||||||||||||
| Series 2007 TT, RB | 5.00 | % | 07/01/37 | 2,000 | 2,038,800 | |||||||||||
| Series 2010 AAA, RB | 5.25 | % | 07/01/29 | 2,000 | 2,188,300 | |||||||||||
Puerto Rico (Commonwealth of) Public Buildings Authority; Series 2002 D, Conv. CAB RB(d)(f)(g) | 0.00 | % | 07/01/17 | 3,680 | 4,315,573 | |||||||||||
| Puerto Rico Sales Tax Financing Corp.; | ||||||||||||||||
| First Subseries 2010 C, RB | 5.00 | % | 08/01/35 | 1,500 | 1,593,630 | |||||||||||
First Subseries 2011 A-1, RB | 5.00 | % | 08/01/43 | 3,000 | 3,193,470 | |||||||||||
| Series 2011 C, RB | 5.00 | % | 08/01/40 | 5,000 | 5,423,900 | |||||||||||
| 21,256,673 | ||||||||||||||||
| Virgin Islands–0.83% | ||||||||||||||||
| Virgin Islands (Government of) Public Finance Authority (Matching Fund Loan Note–Diageo); Series 2009 A, Sub. RB | 6.63 | % | 10/01/29 | 1,675 | 1,917,808 | |||||||||||
| Virgin Islands (Government of) Public Finance Authority (Matching Fund Loan Note); Series 2010 A, Sr. Lien RB | 5.00 | % | 10/01/25 | 1,600 | 1,730,992 | |||||||||||
| 3,648,800 | ||||||||||||||||
TOTAL INVESTMENTS(m)–105.40% (Cost $423,731,273) | 460,384,026 | |||||||||||||||
| FLOATING RATE NOTE OBLIGATIONS–(5.64%) | ||||||||||||||||
Notes with interest rates ranging from 0.14% to 0.26% at 02/29/12 and contractual maturities of collateral ranging from 05/15/23 to 10/01/39 (See Note 1K)(n) | (24,620,000 | ) | ||||||||||||||
| OTHER ASSETS LESS LIABILITIES–0.24% | 1,027,507 | |||||||||||||||
| NET ASSETS–100.00% | $ | 436,791,533 | ||||||||||||||
Investment Abbreviations:
| AGC | – Assured Guaranty Corp. | |
| AGM | – Assured Guaranty Municipal Corp. | |
| AMBAC | – American Municipal Bond Assurance Corp. | |
| BAN | – Bond Anticipation Notes | |
| CAB | – Capital Appreciation Bonds | |
| Conv. | – Convertible | |
| COP | – Certificates of Participation | |
| FGIC | – Financial Guaranty Insurance Co. | |
| FHA | – Federal Housing Administration | |
| GO | – General Obligation | |
| INS | – Insurer | |
| LOC | – Letter of Credit | |
| NATL | – National Public Finance Guarantee Corp. | |
| Radian | – Radian Asset Assurance, Inc. | |
| RB | – Revenue Bonds | |
| Ref. | – Refunding | |
| SGI | – Syncora Guarantee, Inc. | |
| Sub. | – Subordinated | |
| Sr. | – Senior | |
| VRD | – Variable Rate Demand |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco California Tax-Free Income Fund
Notes to Schedule of Investments:
| (a) | Demand security payable upon demand by the Fund at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically. Rate shown is the rate in effect on February 29, 2012. | |
| (b) | Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary. | |
| (c) | Principal and/or interest payments are secured by the bond insurance company listed. | |
| (d) | Zero coupon bond issued at a discount. | |
| (e) | Underlying security related to Dealer Trusts entered into by the Fund. See Note 1K. | |
| (f) | Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put. | |
| (g) | Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral. | |
| (h) | Security subject to the alternative minimum tax. | |
| (i) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at February 29, 2012 represented 0.23% of the Fund’s Net Assets. | |
| (j) | Security is subject to a shortfall agreement which may require the Fund to pay amounts to counterparty in the event of a significant decline in the market value of the security underlying the Dealer Trusts. In case of a shortfall, the maximum potential amount of payments the Fund could ultimately be required to make under the agreement is $615,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security underlying the Dealer Trusts. | |
| (k) | Current coupon rate for inverse floating rate municipal obligations. This rate resets periodically as the auction rate on the related security changes. Positions in inverse floating rate municipal obligations have a total value of $7,285,900 which represents 1.67% of the Fund’s Net Assets. | |
| (l) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 29, 2012. | |
| (m) | This table provides a listing of those entities that have either issued, guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the issuer’s obligations but may be called upon to satisfy the issuer’s obligations. |
| Entities | Percentage | |||
| Assured Guaranty Municipal Corp. | 13.7 | % | ||
| National Public Finance Guarantee Corp. | 13.3 | |||
| American Municipal Bond Assurance Corp. | 9.9 | |||
| (n) | Floating rate note obligations related to securities held. The interest rates shown reflect the rates in effect at February 29, 2012. At February 29, 2012, the Fund’s investments with a value of $43,121,536 are held by Dealer Trusts and serve as collateral for the $24,620,000 in the floating rate note obligations outstanding at that date. |
By credit sector, based on Total Investments
as of February 29, 2012
| Revenue Bonds | 76.5 | % | ||
| General Obligation Bonds | 18.3 | |||
| Pre-refunded Bonds | 3.0 | |||
| Other | 2.2 | |||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 Invesco California Tax-Free Income Fund
Statement of Assets and Liabilities
February 29, 2012
(Unaudited)
| Assets: | ||||
| Investments, at value (Cost $423,731,273) | $ | 460,384,026 | ||
| Receivable for: | ||||
| Investments sold | 1,894,700 | |||
| Fund shares sold | 158,636 | |||
| Interest | 5,502,702 | |||
| Investment for trustee deferred compensation and retirement plans | 10,276 | |||
| Other assets | 9,242 | |||
| Total assets | 467,959,582 | |||
| Liabilities: | ||||
| Floating rate note obligations | 24,620,000 | |||
| Payable for: | ||||
| Investments purchased | 2,594,163 | |||
| Fund shares reacquired | 284,886 | |||
| Amount due custodian | 2,733,316 | |||
| Dividends | 663,509 | |||
| Accrued fees to affiliates | 132,420 | |||
| Accrued other operating expenses | 52,521 | |||
| Trustee deferred compensation and retirement plans | 87,234 | |||
| Total liabilities | 31,168,049 | |||
| Net assets applicable to shares outstanding | $ | 436,791,533 | ||
| Net assets consist of: | ||||
| Shares of beneficial interest | $ | 428,910,677 | ||
| Undistributed net investment income | 1,130,634 | |||
| Undistributed net realized gain (loss) | (29,902,531 | ) | ||
| Unrealized appreciation | 36,652,753 | |||
| $ | 436,791,533 | |||
| Net Assets: | ||||
| Class A | $ | 159,010,680 | ||
| Class B | $ | 225,318,928 | ||
| Class C | $ | 27,647,210 | ||
| Class Y | $ | 24,814,715 | ||
| Shares outstanding, $0.01 par value per share, with an unlimited number of shares authorized: | ||||
| Class A | 13,166,444 | |||
| Class B | 18,524,948 | |||
| Class C | 2,274,554 | |||
| Class Y | 2,046,920 | |||
| Class A: | ||||
| Net asset value per share | $ | 12.08 | ||
| Maximum offering price per share | ||||
| (Net asset value of $12.08 divided by 95.25%) | $ | 12.68 | ||
| Class B: | ||||
| Net asset value and offering price per share | $ | 12.16 | ||
| Class C: | ||||
| Net asset value and offering price per share | $ | 12.16 | ||
| Class Y: | ||||
| Net asset value and offering price per share | $ | 12.12 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 Invesco California Tax-Free Income Fund
Statement of Operations
For the six months ended February 29, 2012
(Unaudited)
| Investment income: | ||||
| Interest | $ | 10,596,139 | ||
| Expenses: | ||||
| | ||||
| Advisory fees | 990,439 | |||
| Administrative services fees | 63,386 | |||
| Custodian fees | 1,248 | |||
| Distribution fees: | ||||
| Class A | 184,004 | |||
| Class B | 275,031 | |||
| Class C | 93,335 | |||
| Interest, facilities and maintenance fees | 86,394 | |||
| Transfer agent fees | 76,837 | |||
| Trustees’ and officers’ fees and benefits | 24,499 | |||
| Other | 37,719 | |||
| Total expenses | 1,832,892 | |||
| Net investment income | 8,763,247 | |||
| Realized and unrealized gain (loss) from: | ||||
| Net realized gain (loss) from investment securities | (85,828 | ) | ||
| Change in net unrealized appreciation of investment securities | 26,589,565 | |||
| Net realized and unrealized gain | 26,503,737 | |||
| Net increase in net assets resulting from operations | $ | 35,266,984 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 Invesco California Tax-Free Income Fund
Statement of Changes in Net Assets
For the six months ended February 29, 2012 and the year ended August 31, 2011
(Unaudited)
| Six months | ||||||||
| ended | Year ended | |||||||
| February 29, | August 31, | |||||||
| 2012 | 2011 | |||||||
| Operations: | ||||||||
| Net investment income | $ | 8,763,247 | $ | 14,877,980 | ||||
| Net realized gain (loss) | (85,828 | ) | (6,917,277 | ) | ||||
| Change in net unrealized appreciation (depreciation) | 26,589,565 | (2,277,744 | ) | |||||
| Net increase in net assets resulting from operations | 35,266,984 | 5,682,959 | ||||||
| Distributions to shareholders from net investment income: | ||||||||
| Class A | (3,229,440 | ) | (2,485,113 | ) | ||||
| Class B | (4,663,537 | ) | (10,580,607 | ) | ||||
| Class C | (465,100 | ) | (701,576 | ) | ||||
| Class Y | (542,460 | ) | (1,184,834 | ) | ||||
| Total distributions from net investment income | (8,900,537 | ) | (14,952,130 | ) | ||||
| Share transactions–net: | ||||||||
| Class A | 602,285 | 121,086,985 | ||||||
| Class B | (8,871,441 | ) | (24,979,384 | ) | ||||
| Class C | 4,208,146 | 4,897,332 | ||||||
| Class Y | (870,931 | ) | (1,665,056 | ) | ||||
| Net increase (decrease) in net assets resulting from share transactions | (4,931,941 | ) | 99,339,877 | |||||
| Net increase in net assets | 21,434,506 | 90,070,706 | ||||||
| Net assets: | ||||||||
| Beginning of period | 415,357,027 | 325,286,321 | ||||||
| End of period (includes undistributed net investment income of $1,130,634 and $1,267,924, respectively) | $ | 436,791,533 | $ | 415,357,027 | ||||
Notes to Financial Statements
February 29, 2012
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco California Tax-Free Income Fund (the “Fund”), is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (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 twelve 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 to provide a high level of current income exempt from federal and California income tax, consistent with the preservation of capital.
The Fund currently consists of four different classes of shares: Class A, Class B, Class C and Class Y. 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 Y 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. 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. 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 conversion date will be subject to a CDSC.
15 Invesco California Tax-Free Income Fund
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. | |
| Securities are fair valued using an evaluated quote provided by an independent pricing service approved by the Board of Trustees. 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, yield, quality, coupon rate, maturity, type of issue, individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and principal payments. | ||
| Securities for which market quotations either are not readily available or are 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. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances. | ||
| 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. | ||
| B. | 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, adjusted for amortization of premiums and accretion of discounts on investments, is recorded on the accrual basis from settlement 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 gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized 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 Statement of Changes in Net Assets, or the net investment income per share and 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 realized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class. | ||
| C. | 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 income are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. | |
| E. | Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable and tax-exempt 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. | |
| In addition, the Fund intends to invest in such municipal securities to allow it to qualify to pay shareholders “exempt-interest dividends”, as defined in the Internal Revenue Code. | ||
| 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. | ||
| F. | Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets. | |
| G. | Interest, Facilities and Maintenance Fees — Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees and other expenses associated with lines of credit and interest and administrative expenses related to establishing and maintaining floating rate note obligations, if any. | |
| H. | 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. |
16 Invesco California Tax-Free Income Fund
| I. | 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 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. | |
| J. | Other Risks — The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located. | |
| Since, many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and a Fund’s investments in municipal securities. | ||
| There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service. | ||
| K. | Floating Rate Note Obligations — The Fund invests in inverse floating rate securities, such as Residual Interest Bonds (“RIBs”) or Tender Option Bonds (“TOBs”) for investment purposes and to enhance the yield of the Fund. Inverse floating rate investments tend to underperform the market for fixed rate bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Such transactions may be purchased in the secondary market without first owning the underlying bond or by the sale of fixed rate bonds by the Fund to special purpose trusts established by a broker dealer (“Dealer Trusts”) in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The Dealer Trusts finance the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Fund to retain residual interest in the bonds. The floating rate notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. The residual interests held by the Fund (inverse floating rate investments) include the right of the Fund (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Fund, thereby collapsing the Dealer Trusts. | |
| TOBs are presently classified as private placement securities. Private placement securities are subject to restrictions on resale because they have not been registered under the Securities Act of 1933, as amended or are otherwise not readily marketable. As a result of the absence of a public trading market for these securities, they may be less liquid than publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices realized from these sales could be less than those originally paid by the Fund or less than what may be considered the fair value of such securities. | ||
| The Fund accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Fund’s investment assets, and the related floating rate notes reflected as Fund liabilities under the caption Floating rate note obligations on the Statement of Assets and Liabilities. The Fund records the interest income from the fixed rate bonds under the caption Interest and records the expenses related to floating rate obligations and any administrative expenses of the Dealer Trusts as a component of Interest, facilities and maintenance fees on the Statement of Operations. | ||
| The Fund generally invests in inverse floating rate securities that include embedded leverage, thus exposing the Fund to greater risks and increased costs. The primary risks associated with inverse floating rate securities are varying degrees of liquidity and the changes in the value of such securities in response to changes in market rates of interest to a greater extent than the value of an equal principal amount of a fixed rate security having similar credit quality, redemption provisions and maturity which may cause the Fund’s net asset value to be more volatile than if it had not invested in inverse floating rate securities. In certain instances, the short-term floating rate interests created by the special purpose trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such interests for repayment of principal, may not be able to be remarketed to third parties. In such cases, the special purpose trust holding the long-term fixed rate bonds may be collapsed. In the case of RIBs or TOBs created by the contribution of long-term fixed income bonds by the Fund, the Fund will then be required to repay the principal amount of the tendered securities. During times of market volatility, illiquidity or uncertainty, the Fund could be required to sell other portfolio holdings at a disadvantageous time to raise cash to meet that obligation. |
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 pays 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 $500 million | 0 | .47% | ||
| Next $250 million | 0 | .445% | ||
| Next $250 million | 0 | .42% | ||
| Next $250 million | 0 | .395% | ||
| Over $1.25 billion | 0 | .37% | ||
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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).
17 Invesco California Tax-Free Income Fund
The Adviser has contractually agreed, through June 30, 2012, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses and/or reimbursement (excluding certain items discussed below) of Class A, Class B, Class C and Class Y shares to 0.85%, 1.35%, 1.35% and 0.60% of average daily net assets, respectively. 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 net annual fund operating expenses and/or reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (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 the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.
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 six months ended February 29, 2012, 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 are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 29, 2012, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.
Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”), an affiliate of the Adviser. The Fund has adopted a Plan of Distribution (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that the Fund will reimburse IDI for distribution related expenses that IDI incurs up to a maximum of the following annual rates: (1) Class A — up to 0.25% of the average daily net assets of Class A shares; (2) Class B — up to 1.00% of the average daily net assets of Class B shares; and (3) Class C — up to 1.00% of the average daily net assets of Class C shares.
In the case of Class B shares, provided that the Plan continues in effect, any cumulative expenses incurred by IDI, but not yet reimbursed to IDI, may be recovered through the payment of future distribution fees from the Fund pursuant to the Plan and contingent deferred sales charges paid by investors upon redemption of Class B shares.
For the six months ended February 29, 2012, expenses incurred under these agreements 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 six months ended February 29, 2012, IDI advised the Fund that IDI retained $13,204 in front-end sales commissions from the sale of Class A shares and $0, $12,515 and $261 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.
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 February 29, 2012. 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.
During the six months ended February 29, 2012, there were no significant transfers between investment levels.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Municipal Obligations | $ | — | $ | 460,384,026 | $ | — | $ | 460,384,026 | ||||||||
18 Invesco California Tax-Free Income Fund
NOTE 4—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 are eligible to participate in a retirement plan that provides 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.
During the six months ended February 29, 2012, the Fund paid legal fees of $0 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.
NOTE 5—Cash Balances and Borrowings
The Trust 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 due to custodian. To compensate the custodian bank for such overdrafts, the overdrawn Trust 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.
Inverse floating rate obligations resulting from the transfer of bonds to Dealer Trusts are accounted for as secured borrowings. The average floating rate notes outstanding and average annual interest and fees related to inverse floating rate note obligations during the six months ended February 29, 2012 were $21,924,286 and 0.79%, respectively.
NOTE 6—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
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. The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, 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. Additionally, post-enactment capital loss carryovers 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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2011, which expires as follows:
| Capital Loss | ||||
| Expiration | Carryforward* | |||
| August 31, 2015 | $ | 803,875 | ||
| August 31, 2016 | 6,835,050 | |||
| August 31, 2017 | 7,025,583 | |||
| August 31, 2018 | 6,678,872 | |||
| August 31, 2019 | 1,906,728 | |||
| $ | 23,250,108 | |||
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. |
19 Invesco California Tax-Free Income Fund
NOTE 7—Investment Securities
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 Trust during the six months ended February 29, 2012 was $46,010,320 and $56,820,157, respectively. Cost of investments 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 Investment Securities on a Tax Basis | ||||
| Aggregate unrealized appreciation of investment securities | $ | 41,629,120 | ||
| Aggregate unrealized (depreciation) of investment securities | (4,353,676 | ) | ||
| Net unrealized appreciation of investment securities | $ | 37,275,444 | ||
| Cost of investments for tax purposes is $423,108,582. | ||||
NOTE 8—Share Information
| Summary of Share Activity | ||||||||||||||||
| Six months ended | Year ended | |||||||||||||||
| February 29, 2012(a) | August 31, 2011 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Sold: | ||||||||||||||||
| Class A | 879,343 | $ | 10,237,962 | 432,719 | $ | 4,969,152 | ||||||||||
| Class B | 15,153 | 175,633 | 59,636 | 658,621 | ||||||||||||
| Class C | 675,306 | 7,876,318 | 165,169 | 1,907,834 | ||||||||||||
| Class Y | 85,766 | 1,021,049 | 24,439 | 277,898 | ||||||||||||
| Issued as reinvestment of dividends: | ||||||||||||||||
| Class A | 158,905 | 1,871,797 | 128,377 | 1,432,340 | ||||||||||||
| Class B | 166,025 | 1,987,520 | 484,791 | 5,409,350 | ||||||||||||
| Class C | 19,739 | 235,952 | 34,194 | 381,591 | ||||||||||||
| Class Y | 18,510 | 220,868 | 52,335 | 582,229 | ||||||||||||
Issued in connection with acquisitions:(b) | ||||||||||||||||
| Class A | — | — | 11,299,147 | 125,271,435 | ||||||||||||
| Class B | — | — | 325,145 | 3,632,906 | ||||||||||||
| Class C | — | — | 725,528 | 8,098,467 | ||||||||||||
| Class Y | — | — | 112,963 | 1,257,024 | ||||||||||||
| Reacquired: | ||||||||||||||||
| Class A | (1,000,185 | ) | (11,507,474 | ) | (946,367 | ) | (10,585,942 | ) | ||||||||
| Class B | (960,079 | ) | (11,034,594 | ) | (3,121,803 | ) | (34,680,261 | ) | ||||||||
| Class C | (330,385 | ) | (3,904,124 | ) | (498,429 | ) | (5,490,560 | ) | ||||||||
| Class Y | (182,733 | ) | (2,112,848 | ) | (341,225 | ) | (3,782,207 | ) | ||||||||
| Net increase (decrease) in share activity | (454,635 | ) | $ | (4,931,941 | ) | 8,936,619 | $ | 99,339,877 | ||||||||
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 62% 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. | |
| (b) | As of the opening of business on June 6, 2011, the Fund acquired all the net assets of Invesco Van Kampen California Insured Tax Free Fund pursuant to a plan of reorganization approved by the Trustees of the Fund on November 10, 2010 and by the shareholders of Invesco Van Kampen California Insured Tax Free Fund on April 14, 2011. The acquisition was accomplished by a tax-free exchange of 12,462,783 shares of the Fund for 8,677,034 shares outstanding of Invesco Van Kampen California Insured Tax Free Fund as of the close of business on June 3, 2011. Each class of Invesco Van Kampen California Insured Tax Free Fund was exchanged for the like class of shares of the Fund based on the relative net asset value of Invesco Van Kampen California Insured Tax Free Fund to the net asset value of the Fund on the close of business, June 3, 2011. Invesco Van Kampen California Insured Tax Free Fund’s net assets at that date of $138,259,833 including $(2,892,055) of unrealized appreciation (depreciation), was combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $275,128,915. The net assets of the Fund immediately after the acquisition were $413,388,748. |
20 Invesco California Tax-Free Income Fund
NOTE 9—Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Supplemental | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ratio of | ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| expenses | Ratio of | expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net gains | to average | expenses | to average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (losses) on | net assets | to average net | net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| securities | with fee | assets without | (excluding | Ratio of net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net asset | (both | Dividends | Distributions | waivers | fee waivers | interest, | investment | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| value, | Net | realized | Total from | from net | from net | Net asset | Net assets, | and/or | and/or | facilities and | income | |||||||||||||||||||||||||||||||||||||||||||||||||
| beginning | investment | and | investment | investment | realized | Total | value, end | Total | end of period | expenses | expenses | maintenance | to average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||
| of period | income | unrealized) | operations | income | gains | distributions | of period | return(a) | (000s omitted) | absorbed | absorbed | fees)(b) | net assets | turnover(c) | ||||||||||||||||||||||||||||||||||||||||||||||
| Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | $ | 11.34 | $ | 0.24 | (d) | $ | 0.74 | $ | 0.98 | $ | (0.24 | ) | $ | — | $ | (0.24 | ) | $ | 12.08 | 8.78 | % | $ | 159,011 | 0.85 | %(e) | 0.85 | %(e) | 0.81 | %(e) | 4.18 | %(e) | 11 | % | |||||||||||||||||||||||||||
| Year ended 08/31/11 | 11.75 | 0.52 | (d) | (0.41 | ) | 0.11 | (0.52 | ) | — | (0.52 | ) | 11.34 | 1.13 | 148,884 | 0.90 | 0.90 | 0.85 | 4.66 | 25 | |||||||||||||||||||||||||||||||||||||||||
| Eight months ended 08/31/10 | 11.21 | 0.37 | 0.52 | 0.89 | (0.35 | ) | — | (0.35 | ) | 11.75 | 8.05 | 26,015 | 0.88 | (f) | 0.91 | (f) | 0.84 | (f) | 4.88 | (f) | 15 | |||||||||||||||||||||||||||||||||||||||
| Year ended 12/31/09 | 10.23 | 0.51 | 0.97 | 1.48 | (0.50 | ) | — | (0.50 | ) | 11.21 | 14.74 | 24,377 | 0.86 | 0.92 | 0.85 | 4.65 | 19 | |||||||||||||||||||||||||||||||||||||||||||
| Year ended 12/31/08 | 11.83 | 0.49 | (1.56 | ) | (1.07 | ) | (0.49 | ) | (0.04 | ) | (0.53 | ) | 10.23 | (9.28 | ) | 22,799 | 0.86 | 0.90 | 0.86 | 4.33 | 10 | |||||||||||||||||||||||||||||||||||||||
| Year ended 12/31/07 | 12.16 | 0.50 | (0.31 | ) | 0.19 | (0.49 | ) | (0.03 | ) | (0.52 | ) | 11.83 | 1.62 | 24,645 | 1.00 | 1.04 | 0.84 | 4.12 | 5 | |||||||||||||||||||||||||||||||||||||||||
| Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 11.42 | 0.24 | (d) | 0.75 | 0.99 | (0.25 | ) | — | (0.25 | ) | 12.16 | 8.73 | (g) | 225,319 | 0.86 | (e)(g) | 0.86 | (e)(g) | 0.82 | (e)(g) | 4.17 | (e) | 11 | |||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 11.83 | 0.52 | (d) | (0.41 | ) | 0.11 | (0.52 | ) | — | (0.52 | ) | 11.42 | 1.16 | (g) | 220,478 | 0.89 | (g) | 0.89 | (g) | 0.84 | (g) | 4.67 | (g) | 25 | ||||||||||||||||||||||||||||||||||||
| Eight months ended 08/31/10 | 11.28 | 0.37 | 0.53 | 0.90 | (0.35 | ) | — | (0.35 | ) | 11.83 | 8.10 | 254,907 | 0.88 | (f) | 0.91 | (f) | 0.84 | (f) | 4.88 | (f) | 15 | |||||||||||||||||||||||||||||||||||||||
| Year ended 12/31/09 | 10.30 | 0.51 | 0.98 | 1.49 | (0.51 | ) | — | (0.51 | ) | 11.28 | 14.68 | 266,270 | 0.85 | 0.94 | 0.84 | 4.66 | 19 | |||||||||||||||||||||||||||||||||||||||||||
| Year ended 12/31/08 | 11.91 | 0.50 | (1.57 | ) | (1.07 | ) | (0.50 | ) | (0.04 | ) | (0.54 | ) | 10.30 | (9.23 | ) | 267,308 | 0.85 | 0.89 | 0.85 | 4.34 | 10 | |||||||||||||||||||||||||||||||||||||||
| Year ended 12/31/07 | 12.24 | 0.50 | (0.30 | ) | 0.20 | (0.50 | ) | (0.03 | ) | (0.53 | ) | 11.91 | 1.65 | 344,606 | 0.97 | 1.01 | 0.81 | 4.15 | 5 | |||||||||||||||||||||||||||||||||||||||||
| Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 11.41 | 0.21 | (d) | 0.76 | 0.97 | (0.22 | ) | — | (0.22 | ) | 12.16 | 8.85 | (h) | 27,647 | 1.36 | (e)(h) | 1.36 | (e)(h) | 1.32 | (e)(h) | 3.67 | (e) | 11 | |||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 11.82 | 0.46 | (d) | (0.40 | ) | 0.06 | (0.47 | ) | — | (0.47 | ) | 11.41 | 0.65 | 21,800 | 1.40 | 1.40 | 1.35 | 4.16 | 25 | |||||||||||||||||||||||||||||||||||||||||
| Eight months ended 08/31/10 | 11.27 | 0.34 | 0.52 | 0.86 | (0.31 | ) | — | (0.31 | ) | 11.82 | 7.76 | 17,528 | 1.38 | (f) | 1.41 | (f) | 1.34 | (f) | 4.38 | (f) | 15 | |||||||||||||||||||||||||||||||||||||||
| Year ended 12/31/09 | 10.29 | 0.46 | 0.97 | 1.43 | (0.45 | ) | — | (0.45 | ) | 11.27 | 14.11 | 17,245 | 1.36 | 1.42 | 1.35 | 4.15 | 19 | |||||||||||||||||||||||||||||||||||||||||||
| Year ended 12/31/08 | 11.90 | 0.44 | (1.57 | ) | (1.13 | ) | (0.44 | ) | (0.04 | ) | (0.48 | ) | 10.29 | (9.74 | ) | 17,105 | 1.36 | 1.40 | 1.36 | 3.83 | 10 | |||||||||||||||||||||||||||||||||||||||
| Year ended 12/31/07 | 12.23 | 0.44 | (0.30 | ) | 0.14 | (0.44 | ) | (0.03 | ) | (0.47 | ) | 11.90 | 1.14 | 22,800 | 1.50 | 1.54 | 1.34 | 3.62 | 5 | |||||||||||||||||||||||||||||||||||||||||
| Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 11.38 | 0.26 | (d) | 0.74 | 1.00 | (0.26 | ) | — | (0.26 | ) | 12.12 | 8.89 | 24,815 | 0.61 | (e) | 0.61 | (e) | 0.57 | (e) | 4.42 | (e) | 11 | ||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 11.79 | 0.55 | (d) | (0.41 | ) | 0.14 | (0.55 | ) | — | (0.55 | ) | 11.38 | 1.40 | 24,195 | 0.65 | 0.65 | 0.60 | 4.91 | 25 | |||||||||||||||||||||||||||||||||||||||||
| Eight months ended 08/31/10 | 11.25 | 0.39 | 0.52 | 0.91 | (0.37 | ) | — | (0.37 | ) | 11.79 | 8.21 | 26,837 | 0.63 | (f) | 0.66 | (f) | 0.59 | (f) | 5.13 | (f) | 15 | |||||||||||||||||||||||||||||||||||||||
| Year ended 12/31/09 | 10.26 | 0.54 | 0.98 | 1.52 | (0.53 | ) | — | (0.53 | ) | 11.25 | 15.10 | 27,388 | 0.61 | 0.67 | 0.60 | 4.90 | 19 | |||||||||||||||||||||||||||||||||||||||||||
| Year ended 12/31/08 | 11.86 | 0.52 | (1.56 | ) | (1.04 | ) | (0.52 | ) | (0.04 | ) | (0.56 | ) | 10.26 | (9.02 | ) | 28,450 | 0.61 | 0.65 | 0.61 | 4.58 | 10 | |||||||||||||||||||||||||||||||||||||||
| Year ended 12/31/07 | 12.20 | 0.53 | (0.32 | ) | 0.21 | (0.52 | ) | (0.03 | ) | (0.55 | ) | 11.86 | 1.80 | 49,024 | 0.76 | 0.80 | 0.60 | 4.36 | 5 | |||||||||||||||||||||||||||||||||||||||||
| (a) | 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. | |
| (b) | For the years ended August 31, 2011 and prior, ratio does not exclude facilities and maintenance fees. | |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the period ending August 31, 2011, the portfolio turnover calculation excludes the value of securities purchased of $139,542,348 and sold of $13,399,363 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco Van Kampen California Insured Tax Free Fund into the Fund. | |
| (d) | Calculated using average shares outstanding. | |
| (e) | Ratios are annualized and based on average daily net assets (000’s omitted) of $153,201, $221,233, $25,026 and $24,319 for Class A, Class B, Class C and Class Y Class shares, respectively. | |
| (f) | Annualized. | |
| (g) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.25% and 0.25% for the six months ended February 29, 2012 and the year ended August 31, 2012. | |
| (h) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.75%. |
21 Invesco California Tax-Free Income 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, and redemption fees, 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 September 1, 2011 through February 29, 2012.
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, contingent deferred sales charges on redemptions, and redemption fees, 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.
| HYPOTHETICAL | ||||||||||||||||||||||||||||||
| ACTUAL | (5% annual return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Ending | Expenses | Annualized | |||||||||||||||||||||||||
| Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||||||||||||||||||||
| Class | (09/01/11) | (02/29/12)1 | Period2 | (02/29/12) | Period2 | Ratio | ||||||||||||||||||||||||
| A | $ | 1,000.00 | $ | 1,066.20 | $ | 4.37 | $ | 1,020.64 | $ | 4.27 | 0.85 | % | ||||||||||||||||||
| B | 1,000.00 | 1,065.80 | 4.42 | 1,020.59 | 4.32 | 0.86 | ||||||||||||||||||||||||
| C | 1,000.00 | 1,065.40 | 6.98 | 1,018.10 | 6.82 | 1.36 | ||||||||||||||||||||||||
| Y | 1,000.00 | 1,066.60 | 3.13 | 1,021.83 | 3.07 | 0.61 | ||||||||||||||||||||||||
| 1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2011 through February 29, 2012, 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 182/366 to reflect the most recent fiscal half year. |
22 Invesco California Tax-Free Income Fund
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Invesco privacy policy
You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.
Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.
Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.
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 811-09913 and 333-36074.
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 12 months ended June 30, 2011, 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 U.S. 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. |
MS-CTFI-SAR-1 Invesco Distributors, Inc.
Invesco Core Plus Bond Fund
Semiannual Report to Shareholders § February 29, 2012
Semiannual Report to Shareholders § February 29, 2012
Nasdaq:
A: ACPSX § B: CPBBX § C: CPCFX § R: CPBRX § Y: CPBYX § Institutional: CPIIX
A: ACPSX § B: CPBBX § C: CPCFX § R: CPBRX § Y: CPBYX § Institutional: CPIIX
| 2 | Fund Performance | |
| 3 | Letters to Shareholders | |
| 4 | Schedule of Investments | |
| 23 | Financial Statements | |
| 25 | Notes to Financial Statements | |
| 35 | Financial Highlights | |
| 36 | Fund Expenses | |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
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 | ||||||
Fund Performance
Performance summary
Fund vs. Indexes
Cumulative total returns, 8/31/11 to 2/29/12, 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 | 3.89 | % | ||
| Class B Shares | 3.50 | |||
| Class C Shares | 3.50 | |||
| Class R Shares | 3.76 | |||
| Class Y Shares | 4.01 | |||
| Institutional Class Shares | 4.02 | |||
Barclays U.S. Aggregate Index▼ (Broad Market/Style-Specific Index) | 2.73 | |||
Lipper Intermediate Investment Grade Debt Funds Index▼ (Peer Group Index) | 3.33 | |||
Source(s): ▼Lipper Inc.
The Barclays U.S. Aggregate Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market.
The Lipper Intermediate Investment Grade Debt Funds Index is an unmanaged index considered representative of intermediate investment grade debt funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
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.
Average Annual Total Returns
As of 2/29/12, including maximum applicable sales charges
| Class A Shares | |||||||
| Inception (6/3/09) | 5.73 | % | |||||
| 1 | Year | 2.33 | |||||
| Class B Shares | |||||||
| Inception (6/3/09) | 5.85 | % | |||||
| 1 | Year | 1.64 | |||||
| Class C Shares | |||||||
| Inception (6/3/09) | 6.83 | % | |||||
| 1 | Year | 5.64 | |||||
| Class R Shares | |||||||
| Inception (6/3/09) | 7.36 | % | |||||
| 1 | Year | 7.17 | |||||
| Class Y Shares | |||||||
| Inception (6/3/09) | 7.90 | % | |||||
| 1 | Year | 7.70 | |||||
| Institutional Class Shares | |||||||
| Inception (6/3/09) | 7.90 | % | |||||
| 1 | Year | 7.71 | |||||
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 perfor-
Average Annual Total Returns
As of 12/31/11, the most recent calendar quarter-end, including maximum applicable sales charges
| Class A Shares | |||||||
| Inception (6/3/09) | 5.08 | % | |||||
| 1 | Year | 0.39 | |||||
| Class B Shares | |||||||
| Inception (6/3/09) | 5.19 | % | |||||
| 1 | Year | -0.47 | |||||
| Class C Shares | |||||||
| Inception (6/3/09) | 6.26 | % | |||||
| 1 | Year | 3.53 | |||||
| Class R Shares | |||||||
| Inception (6/3/09) | 6.79 | % | |||||
| 1 | Year | 5.05 | |||||
| Class Y Shares | |||||||
| Inception (6/3/09) | 7.36 | % | |||||
| 1 | Year | 5.67 | |||||
| Institutional Class Shares | |||||||
| Inception (6/3/09) | 7.32 | % | |||||
| 1 | Year | 5.58 | |||||
mance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a share-
holder would pay on Fund distributions or sale of Fund shares. 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 and Institutional Class shares was 0.75%, 1.50%, 1.50%, 1.00%, 0.50% and 0.50%, 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 and Institutional Class shares was 1.20%, 1.95%, 1.95%, 1.45%, 0.95% and 0.66%, 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 4.75% 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, Y and Institutional Class 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.
Had the adviser not waived fees and/or reimbursed expenses on Class A, B, C, R or Y shares, or on Institutional Class shares in the past, performance would have been lower.
| 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, 2013. See current prospectus for more information. |
2 Invesco Core Plus Bond Fund
Letters to Shareholders
Bruce Crockett
Dear Fellow Shareholders:
Throughout 2011, we experienced volatile, challenging markets that presented both opportunities and risks for investors. Based on everything I’ve read, this year could potentially be just as interesting, with continued economic uncertainty and market volatility.
With this in mind, you’ll want to stay informed regarding the markets and keep up to date with news that affects your investment portfolio. Invesco’s website, invesco.com/us, provides a wealth of information about your investments and news regarding global markets.
Regardless of economic conditions and market trends, the Invesco Funds Board of Trustees remains committed to putting your interests first. Throughout 2011, we worked to manage costs, and this remains a continuing focus of your Board. We will continue to oversee the funds with the strong sense of responsibility for your money and your continued trust that we’ve always maintained.
I would like to close by thanking Bob Baker for his distinguished 30-year service with the Invesco Funds Board and his unflagging commitment to our funds’ shareholders. As always, I encourage you to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving you in 2012.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Independent Chair
Invesco Funds Board of Trustees
Philip Taylor
Dear Shareholders:
This report provides important information about your Fund, including its short- and long-term performance. Also, this report includes a listing of investments held by your Fund at the close of the reporting period.
Investors are likely to confront both opportunities and challenges in 2012. As we saw in 2011, market sentiment can change suddenly and dramatically – and certainly without advance notice – depending on economic developments and world events. Similarly, your own situation, needs and goals can change, requiring adjustments in your financial strategy.
In addition to meeting with your financial adviser regularly to discuss your individual situation, you also may find it helpful to stay abreast of market trends and developments. Doing so may provide reassurance in times of economic uncertainty and market volatility such as we saw last year and may see again this year.
Invesco can help you stay informed about your investments and market trends. On our website, invesco.com/us, we provide timely market updates and commentary from many of our portfolio managers and other investment professionals. Also on our website, you can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer at invesco.com/us.
If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.
All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.
Sincerely,
Philip Taylor
Senior Managing Director, Invesco Ltd.
Senior Managing Director, Invesco Ltd.
3 Invesco Core Plus Bond Fund
Schedule of Investments
February 29, 2012
(Unaudited)
| Principal | ||||||||
| Amount | Value | |||||||
| U.S. Dollar Denominated Bonds and Notes–50.75%(a) | ||||||||
| Advertising–0.09% | ||||||||
| WPP Finance (United Kingdom), Sr. Unsec. Gtd. Global Notes, 8.00%, 09/15/14 | $ | 365,000 | $ | 421,550 | ||||
| Aerospace & Defense–0.17% | ||||||||
Bombardier Inc. (Canada), Sr. Unsec. Notes, 7.75%, 03/15/20(b) | 30,000 | 35,025 | ||||||
| Huntington Ingalls Industries, Inc., Sr. Unsec. Gtd. Global Notes, | ||||||||
| 6.88%, 03/15/18 | 10,000 | 10,575 | ||||||
| 7.13%, 03/15/21 | 30,000 | 32,400 | ||||||
| Spirit Aerosystems Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 12/15/20 | 10,000 | 10,900 | ||||||
| Textron Inc., Sr. Unsec. Notes, 4.63%, 09/21/16 | 675,000 | 717,946 | ||||||
| 806,846 | ||||||||
| Agricultural Products–0.24% | ||||||||
| Bunge Ltd. Finance Corp., Sr. Unsec. Gtd. Notes, 4.10%, 03/15/16 | 245,000 | 255,559 | ||||||
Cargill, Inc., Sr. Unsec. Notes, 5.60%, 09/15/12(b) | 60,000 | 61,546 | ||||||
| Corn Products International, Inc., Sr. Unsec. Notes, | ||||||||
| 3.20%, 11/01/15 | 75,000 | 77,945 | ||||||
| 6.63%, 04/15/37 | 635,000 | 741,197 | ||||||
| 1,136,247 | ||||||||
| Airlines–0.88% | ||||||||
American Airlines Inc., Sr. Sec. Gtd. Notes, 7.50%, 03/15/16(b)(c) | 105,000 | 88,200 | ||||||
American Airlines Pass Through Trust–Series 2011-1, Class A, Sr. Sec. Gtd. Pass Through Ctfs., 5.25%, 01/31/21 | 1,121,293 | 1,122,695 | ||||||
American Airlines Pass Through Trust,–Series 2011-1, Class B, Sec. Gtd. Pass Through Ctfs., 7.00%, 01/31/18(b) | 367,481 | 362,888 | ||||||
Continental Airlines Pass Through Trust, Series 2007-1, Class C, Sec. Global Pass Through Ctfs., 7.34%, 04/19/14 | 14,223 | 14,507 | ||||||
Series 2009-1, Sec. Pass Through Ctfs., 9.00%, 07/08/16 | 1,521,771 | 1,746,232 | ||||||
Series 2009-2, Class B, Sec. Global Pass Through Ctfs., 9.25%, 05/10/17 | 4,191 | 4,452 | ||||||
Series 2010-1, Class B, Sec. Pass Through Ctfs., 6.00%, 01/12/19 | 28,785 | 27,940 | ||||||
Delta Air Lines Pass Through Trust, Series 2009-1, Class A, Sr. Sec. Pass Through Ctfs., 7.75%, 12/17/19 | 561,437 | 635,126 | ||||||
Series 2010-1, Class B, Sec. Pass Through Ctfs., 6.38%, 01/02/16(b) | 85,000 | 81,812 | ||||||
Series 2010-2, Class B, Sec. Pass Through Ctfs., 6.75%, 11/23/15(b) | 10,000 | 9,650 | ||||||
Delta Air Lines, Inc., Sec. Notes, 12.25%, 03/15/15(b) | 25,000 | 27,250 | ||||||
Sr. Sec. Notes, 9.50%, 09/15/14(b) | 2,000 | 2,155 | ||||||
UAL Pass Through Trust, Series 2007-1, Class A, Sec. Gtd. Global Pass Through Ctfs., 6.64%, 07/02/22 | 66,235 | 69,837 | ||||||
Series 2009-1, Sr. Sec. Gtd. Global Pass Through Ctfs., 10.40%, 11/01/16 | 7,679 | 8,830 | ||||||
Series 2009-2A, Sec. Gtd. Global Pass Through Ctfs., 9.75%, 01/15/17 | 4,174 | 4,811 | ||||||
US Airways Pass Through Trust–Series 1998-1, Class C, Sec. Pass Through Ctfs., 6.82%, 01/30/14 | 25,557 | 23,193 | ||||||
| 4,229,578 | ||||||||
| Alternative Carriers–0.05% | ||||||||
Cogent Communications Group, Inc., Sr. Sec. Gtd. Notes, 8.38%, 02/15/18(b) | 30,000 | 31,425 | ||||||
| Intelsat Jackson Holdings S.A. (Luxembourg), Sr. Unsec. Gtd. Global Notes, 7.25%, 10/15/20 | 50,000 | 53,000 | ||||||
| Level 3 Communications Inc., | ||||||||
| Sr. Unsec. Global Notes, 11.88%, 02/01/19 | 20,000 | 22,850 | ||||||
| Level 3 Financing Inc., | ||||||||
Sr. Unsec. Gtd. Global Notes, 9.38%, 04/01/19 | 110,000 | 121,825 | ||||||
| Sr. Unsec. Gtd. Notes, | ||||||||
8.13%, 07/01/19(b) | 10,000 | 10,525 | ||||||
8.63%, 07/15/20(b) | 15,000 | 16,050 | ||||||
| 255,675 | ||||||||
| Aluminum–0.02% | ||||||||
| Century Aluminum Co., Sr. Sec. Gtd. Notes, 8.00%, 05/15/14 | 88,500 | 90,768 | ||||||
| Apparel Retail–0.20% | ||||||||
| Express LLC/Express Finance Corp., Sr. Unsec. Gtd. Global Notes, 8.75%, 03/01/18 | 54,000 | 59,805 | ||||||
| Gap, Inc. (The), Sr. Unsec. Notes, 5.95%, 04/12/21 | 679,000 | 683,244 | ||||||
| J. Crew Group, Inc., Sr. Unsec. Gtd. Global Notes, 8.13%, 03/01/19 | 80,000 | 80,400 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 Invesco Core Plus Bond Fund
| Principal | ||||||||
| Amount | Value | |||||||
Apparel Retail–(continued) | ||||||||
Limited Brands Inc., Sr. Unsec. Gtd. Global Notes, 8.50%, 06/15/19 | $ | 5,000 | $ | 5,987 | ||||
Sr. Unsec. Gtd. Notes, 6.63%, 04/01/21 | 120,000 | 132,900 | ||||||
| 962,336 | ||||||||
| Apparel, Accessories & Luxury Goods–0.07% | ||||||||
| Hanesbrands Inc., Sr. Unsec. Gtd. Global Notes, 6.38%, 12/15/20 | 95,000 | 99,750 | ||||||
| Jones Group/Appreal Group Holdings/Apparel Group USA/Footwear Accessories retail, Sr. Unsec. Notes, 6.88%, 03/15/19 | 117,000 | 114,075 | ||||||
| Quiksilver Inc., Sr. Unsec. Gtd. Global Notes, 6.88%, 04/15/15 | 100,000 | 100,500 | ||||||
| 314,325 | ||||||||
| Asset Management & Custody Banks–0.11% | ||||||||
| DJO Finance LLC/Corp., | ||||||||
Sr. Unsec. Gtd. Global Notes, 7.75%, 04/15/18 | 54,000 | 46,440 | ||||||
Sr. Unsec. Gtd. Sub. Global Notes, 9.75%, 10/15/17 | 21,000 | 16,196 | ||||||
First Data Corp., Sr. Sec. Gtd. Notes, 7.38%, 06/15/19(b) | 9,000 | 9,203 | ||||||
State Street Capital Trust III, Jr. Unsec. Gtd. Sub. Variable Rate Bonds, 5.54%(d)(e) | 445,000 | 445,556 | ||||||
| 517,395 | ||||||||
| Auto Parts & Equipment–0.06% | ||||||||
Allison Transmission Inc., Sr. Unsec. Gtd Notes, 7.13%, 05/15/19(b) | 121,000 | 124,932 | ||||||
| American Axle & Manufacturing, Inc., | ||||||||
| Sr. Unsec. Gtd. Notes, 7.75%, 11/15/19 | 45,000 | 48,150 | ||||||
| Dana Holding Corp., Sr. Unsec. Notes, 6.75%, 02/15/21 | 75,000 | 81,562 | ||||||
| Tenneco Inc., Sr. Unsec. Gtd. Global Notes, 6.88%, 12/15/20 | 45,000 | 48,713 | ||||||
| 303,357 | ||||||||
| Automobile Manufacturers–0.56% | ||||||||
| Automotores Gildemeister S.A. (Chile), | ||||||||
Sr. Unsec. Gtd. Notes, 8.25%, 05/24/21(b) | 100,000 | 104,580 | ||||||
| Ford Motor Co., Sr. Unsec. Global Notes, 7.45%, 07/16/31 | 188,000 | 242,520 | ||||||
FUEL Trust, Sec. Notes 3.98%, 06/15/16(b) | 2,300,000 | 2,338,483 | ||||||
| 2,685,583 | ||||||||
| Automotive Retail–0.28% | ||||||||
| Advance Auto Parts, Inc., Sr. Unsec. Gtd. Notes, 5.75%, 05/01/20 | 1,180,000 | 1,345,696 | ||||||
| Biotechnology–0.77% | ||||||||
| Gilead Sciences, Inc., Sr. Unsec. Global Notes, 5.65%, 12/01/41 | 3,325,000 | 3,705,728 | ||||||
STHI Holding Corp., Sec. Gtd. Notes, 8.00%, 03/15/18(b) | 20,000 | 21,550 | ||||||
| 3,727,278 | ||||||||
| Brewers–0.73% | ||||||||
| Anheuser-Busch InBev Worldwide Inc., Sr. Unsec. Gtd. Global Notes, | ||||||||
| 3.00%, 10/15/12 | 1,670,000 | 1,696,297 | ||||||
| 5.38%, 11/15/14 | 125,000 | 139,809 | ||||||
| SABMiller Holdings Inc., Sr. Unsec. Gtd. Notes, | ||||||||
3.75%, 01/15/22(b) | 950,000 | 985,434 | ||||||
4.95%, 01/15/42(b) | 670,000 | 710,858 | ||||||
| 3,532,398 | ||||||||
| Broadcasting–0.72% | ||||||||
| Clear Channel Communications, Inc., Sr. Sec. Gtd. Global Notes, 9.00%, 03/01/21 | 88,000 | 80,740 | ||||||
Clear Channel Worldwide Holdings Inc., Sr. Gtd. Sub. Notes, 7.63%, 03/15/20(b) | 8,000 | 8,000 | ||||||
Sr. Sub. Gtd. Notes, 7.63%, 03/15/20(b) | 30,000 | 30,000 | ||||||
| COX Communications Inc., Sr. Unsec. Notes, | ||||||||
9.38%, 01/15/19(b) | 25,000 | 33,711 | ||||||
8.38%, 03/01/39(b) | 1,220,000 | 1,720,137 | ||||||
| Discovery Communications LLC, Sr. Unsec. Gtd. Global Notes, 6.35%, 06/01/40 | 1,275,000 | 1,614,694 | ||||||
Videotron Ltee (Canada), Sr. Unsec. Notes, 5.00%, 07/15/22(b) | 5,000 | 5,000 | ||||||
| 3,492,282 | ||||||||
| Building Products–0.12% | ||||||||
American Standard Americas, Sr. Sec. Notes, 10.75%, 01/15/16(b) | 20,000 | 14,400 | ||||||
| Associated Materials LLC, Sr. Sec. Gtd. Global Notes, 9.13%, 11/01/17 | 65,000 | 63,862 | ||||||
Building Materials Corp. of America, Sr. Sec. Gtd. Notes, 7.50%, 03/15/20(b) | 95,000 | 103,312 | ||||||
Sr. Unsec. Notes, 6.88%, 08/15/18(b) | 36,000 | 38,880 | ||||||
| Gibraltar Industries Inc.–Series B, Sr. Unsec. Gtd. Sub. Global Notes, 8.00%, 12/01/15 | 60,000 | 61,388 | ||||||
| Nortek Inc, Sr. Unsec. Gtd. Global Notes, 8.50%, 04/15/21 | 141,000 | 136,946 | ||||||
Roofing Supply Group LLC/Roofing Supply Finance Inc., Sr. Sec. Notes, 8.63%, 12/01/17(b) | 108,000 | 117,315 | ||||||
USG Corp., Sr. Unsec. Gtd. Notes, 9.75%, 08/01/14(b) | 15,000 | 16,219 | ||||||
Sr. Unsec. Notes, 9.75%, 01/15/18 | 35,000 | 34,125 | ||||||
| 586,447 | ||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 Invesco Core Plus Bond Fund
| Principal | ||||||||
| Amount | Value | |||||||
| Cable & Satellite–1.28% | ||||||||
British Sky Broadcasting Group PLC (United Kingdom), Sr. Unsec. Gtd. Notes, 9.50%, 11/15/18(b) | $ | 25,000 | $ | 34,015 | ||||
| CCO Holdings LLC/CCO Holdings Capital Corp., Sr. Unsec. Gtd. Notes, 6.63%, 01/31/22 | 5,000 | 5,375 | ||||||
Comcast Corp., Sr. Unsec. Gtd. Global Notes, 6.50%, 01/15/15 | 20,000 | 22,924 | ||||||
Sr. Unsec. Gtd. Notes, 6.45%, 03/15/37 | 80,000 | 100,012 | ||||||
| DIRECTV Holdings LLC/ DIRECTV Financing Co., Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 05/15/16 | 2,175,000 | 2,287,828 | ||||||
Hughes Satellite Systems Corp., Sr. Sec. Gtd. Global Notes, 6.50%, 06/15/19 | 11,000 | 11,715 | ||||||
Sr. Unsec. Gtd. Global Notes, 7.63%, 06/15/21 | 26,000 | 28,340 | ||||||
Kabel BW GmbH (Germany), Sr. Sec. Gtd. Notes, 7.50%, 03/15/19(b) | 150,000 | 161,625 | ||||||
| NBC Universal Media LLC, Sr. Unsec. Global Notes, | ||||||||
| 2.10%, 04/01/14 | 775,000 | 792,006 | ||||||
| 5.15%, 04/30/20 | 350,000 | 406,039 | ||||||
| 5.95%, 04/01/41 | 740,000 | 898,491 | ||||||
| Time Warner Cable, Inc., Sr. Unsec. Gtd. Notes, | ||||||||
| 5.00%, 02/01/20 | 680,000 | 765,195 | ||||||
| 5.88%, 11/15/40 | 400,000 | 456,135 | ||||||
| Virgin Media Secured Finance PLC (United Kingdom), Sr. Sec. Gtd. Global Notes, 5.25%, 01/15/21 | 200,000 | 219,396 | ||||||
| 6,189,096 | ||||||||
| Casinos & Gaming–0.10% | ||||||||
| Ameristar Casinos Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 04/15/21 | 55,000 | 59,675 | ||||||
Caesars Entertainment Operating Co. Inc., Sec. Gtd. Global Notes, 12.75%, 04/15/18 | 15,000 | 12,975 | ||||||
Sr. Unsec. Gtd. Global Bonds, 5.63%, 06/01/15 | 5,000 | 3,875 | ||||||
Chester Downs & Marina LLC, Sr. Sec. Gtd. Notes, 9.25%, 02/01/20(b) | 10,000 | 10,500 | ||||||
MGM Resorts International, Sr. Unsec. Gtd. Global Notes, 6.63%, 07/15/15 | 150,000 | 152,625 | ||||||
Sr. Unsec. Gtd. Notes, 8.63%, 02/01/19(b) | 10,000 | 10,675 | ||||||
| Pinnacle Entertainment Inc., Sr. Unsec. Gtd. Global Notes, 8.63%, 08/01/17 | 30,000 | 32,737 | ||||||
Seneca Gaming Corp., Sr. Unsec. Gtd. Notes, 8.25%, 12/01/18(b) | 49,000 | 49,735 | ||||||
Snoqualmie Entertainment Authority, Sr. Sec. Floating Rate Notes, 4.53%, 02/01/14(b)(d) | 5,000 | 4,638 | ||||||
Sr. Sec. Notes, 9.13%, 02/01/15(b) | 30,000 | 29,700 | ||||||
| Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., Sec. Gtd. First Mortgage Global Notes, 7.75%, 08/15/20 | 85,000 | 96,475 | ||||||
| 463,610 | ||||||||
| Coal & Consumable Fuels–0.02% | ||||||||
| CONSOL Energy Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 04/01/20 | 35,000 | 38,237 | ||||||
Peabody Energy Corp., Sr. Unsec. Gtd. Notes, 6.00%, 11/15/18(b) | 37,000 | 38,989 | ||||||
Westmoreland Coal Co./Westmoreland Partners, Sr. Sec. Notes, 10.75%, 02/01/18(b) | 15,000 | 14,513 | ||||||
| 91,739 | ||||||||
| Communications Equipment–0.03% | ||||||||
| Avaya Inc., | ||||||||
Sr. Sec. Gtd. Notes, 7.00%, 04/01/19(b) | 65,000 | 65,894 | ||||||
Sr. Unsec. Gtd. Global Notes, 9.75%, 11/01/15 | 40,000 | 40,300 | ||||||
ViaSat Inc., Sr. Unsec. Gtd. Notes, 6.88%, 06/15/20(b) | 25,000 | 25,875 | ||||||
| 132,069 | ||||||||
| Computer & Electronics Retail–0.46% | ||||||||
| Best Buy Co. Inc., Sr. Unsec. Global Notes, 6.75%, 07/15/13 | 2,010,000 | 2,127,374 | ||||||
Rent-A-Center Inc., Sr. Unsec. Gtd Global Notes, 6.63%, 11/15/20 | 65,000 | 68,087 | ||||||
| 2,195,461 | ||||||||
| Computer Hardware–0.00% | ||||||||
| SunGard Data Systems Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 11/15/20 | 12,000 | 13,020 | ||||||
| Computer Storage & Peripherals–0.02% | ||||||||
Seagate HDD Cayman, Sr. Unsec. Gtd. Notes, 7.00%, 11/01/21(b) | 7,000 | 7,770 | ||||||
| Seagate HDD Cayman (Cayman Islands), Sr. Unsec. Gtd. Global Notes, 7.75%, 12/15/18 | 70,000 | 79,187 | ||||||
| 86,957 | ||||||||
| Construction & Engineering–0.05% | ||||||||
| Dycom Investments, Inc., Sr. Unsec. Gtd. Global Notes, 7.13%, 01/15/21 | 80,000 | 82,300 | ||||||
| MasTec, Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 02/01/17 | 45,000 | 46,350 | ||||||
| Tutor Perini Corp., Sr. Unsec. Gtd. Global Notes, 7.63%, 11/01/18 | 100,000 | 101,000 | ||||||
| 229,650 | ||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Core Plus Bond Fund
| Principal | ||||||||
| Amount | Value | |||||||
| Construction & Farm Machinery & Heavy Trucks–0.14% | ||||||||
| Case New Holland Inc., Sr. Unsec. Gtd. Global Notes, 7.88%, 12/01/17 | $ | 40,000 | $ | 47,300 | ||||
| Chrysler Group LLC/CG Co.-Issuer Inc., Sec. Gtd. Global Notes, 8.00%, 06/15/19 | 200,000 | 203,000 | ||||||
Commercial Vehicle Group, Inc., Sec. Gtd. Notes, 7.88%, 04/15/19(b) | 51,000 | 52,148 | ||||||
Lonking Holdings Ltd. (China), Sr. Unsec. Gtd. Notes, 8.50%, 06/03/16(b) | 200,000 | 186,564 | ||||||
| Manitowoc Co. Inc. (The), Sr. Unsec. Gtd. Notes, 8.50%, 11/01/20 | 35,000 | 39,025 | ||||||
| Navistar International Corp., Sr. Unsec. Gtd. Notes, 8.25%, 11/01/21 | 68,000 | 74,630 | ||||||
| Titan International Inc., Sr. Sec. Gtd. Global Notes, 7.88%, 10/01/17 | 50,000 | 53,375 | ||||||
| 656,042 | ||||||||
| Construction Materials–0.06% | ||||||||
Cemex Finance LLC, Sr. Sec. Gtd. Bonds, 9.50%, 12/14/16(b) | 100,000 | 99,033 | ||||||
| Ply Gem Industries Inc., Sr. Sec. Gtd. Global Notes, 8.25%, 02/15/18 | 65,000 | 63,294 | ||||||
| Texas Industries Inc., Sr. Unsec. Gtd. Global Notes, 9.25%, 08/15/20 | 125,000 | 120,000 | ||||||
| 282,327 | ||||||||
| Consumer Finance–0.29% | ||||||||
| Ally Financial Inc., Sr. Unsec. Gtd. Global Notes, | ||||||||
| 8.00%, 03/15/20 | 75,000 | 85,312 | ||||||
| 7.50%, 09/15/20 | 185,000 | 204,425 | ||||||
| 8.00%, 11/01/31 | 10,000 | 11,175 | ||||||
| National Money Mart Co. (Canada), Sr. Unsec. Gtd. Global Notes, 10.38%, 12/15/16 | 75,000 | 83,438 | ||||||
SLM Corp., Sr. Unsec. Medium-Term Global Notes, 6.25%, 01/25/16 | 355,000 | 371,202 | ||||||
Series A, Sr. Unsec. Medium-Term Notes, 5.00%, 10/01/13 | 615,000 | 629,728 | ||||||
| 1,385,280 | ||||||||
| Data Processing & Outsourced Services–0.04% | ||||||||
CoreLogic, Inc., Sr. Unsec. Gtd. Notes, 7.25%, 06/01/21(b) | 178,000 | 179,780 | ||||||
| SunGard Data Systems Inc., Sr. Unsec. Gtd. Global Notes, 7.38%, 11/15/18 | 20,000 | 21,600 | ||||||
| 201,380 | ||||||||
| Department Stores–0.21% | ||||||||
| Macy’s Retail Holdings, Inc., Sr. Unsec. Gtd. Notes, 5.35%, 03/15/12 | 955,000 | 956,194 | ||||||
| Sears Holdings Corp., Sr. Sec. Gtd. Global Notes, 6.63%, 10/15/18 | 45,000 | 39,150 | ||||||
| 995,344 | ||||||||
| Distillers & Vintners–0.01% | ||||||||
| Constellation Brands Inc., Sr. Unsec. Gtd. Global Notes, 7.25%, 05/15/17 | 60,000 | 68,025 | ||||||
| Diversified Banks–5.79% | ||||||||
| Abbey National Treasury Services PLC (United Kingdom), | ||||||||
Sr. Unsec. Gtd. Global Notes, 2.88%, 04/25/14 | 440,000 | 437,991 | ||||||
Sr. Unsec. Gtd. Medium-Term Euro Notes, 3.88%, 11/10/14(b) | 420,000 | 419,108 | ||||||
| Akbank TAS (Turkey), Sr. Unsec. Notes, | ||||||||
5.13%, 07/22/15(b) | 100,000 | 96,759 | ||||||
6.50%, 03/09/18(b) | 200,000 | 201,779 | ||||||
Alfa Bank OJSC Via Alfa Bond Issuance PLC (Ireland), Sr. Sec. Gtd. Loan Participation Notes 7.75%, 04/28/21(b) | 200,000 | 198,929 | ||||||
ANZ National Int’l Ltd. (New Zealand), Sr. Unsec. Gtd. Notes, 2.38%, 12/21/12(b) | 1,080,000 | 1,090,911 | ||||||
Banco Bradesco S.A. (Brazil), Sr. Unsec. Notes, 4.10%, 03/23/15(b) | 415,000 | 431,045 | ||||||
Banco de Bogota S.A. (Colombia), Sr. Unsec. Notes, 5.00%, 01/15/17(b) | 200,000 | 206,928 | ||||||
Banco del Estado (Chile), 3.88%, 02/08/22(b) | 150,000 | 149,268 | ||||||
Banco Satander S.A. (Brazil), Sr. Unsec. Notes, 4.63%, 02/13/17(b) | 150,000 | 149,774 | ||||||
| BanColombia S.A. (Colombia), Sr. Unsec. Global Notes, 5.95%, 06/03/21 | 250,000 | 259,938 | ||||||
Bangkok Bank PCL (Thailand), Sr. Unsec. Notes, 4.80%, 10/18/20(b) | 100,000 | 101,563 | ||||||
| Bank of Nova Scotia (Canada), Sr. Unsec. Global Notes, 2.38%, 12/17/13 | 1,525,000 | 1,573,691 | ||||||
| Barclays Bank PLC (United Kingdom), Unsec. Sub. Global Notes, 5.14%, 10/14/20 | 810,000 | 780,500 | ||||||
GTB Finance B.V. (Netherlands), Sr. Unsec. Gtd. Notes, 7.50%, 05/19/16(b) | 200,000 | 207,577 | ||||||
Hana Bank (South Korea), Sr. Unsec. Notes, 4.25%, 06/14/17(b) | 700,000 | 717,705 | ||||||
HBOS PLC (United Kingdom)–Series G, Unsec. Sub. Medium-Term Global Notes, 6.75%, 05/21/18(b) | 1,360,000 | 1,213,271 | ||||||
HSBC Finance Corp., Sr. Unsec. Global Notes, 7.00%, 05/15/12 | 115,000 | 116,364 | ||||||
Sr. Unsec. Sub. Global Notes, 6.68%, 01/15/21 | 531,000 | 571,046 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Core Plus Bond Fund
| Principal | ||||||||
| Amount | Value | |||||||
Diversified Banks–(continued) | ||||||||
ING Bank N.V. (Netherlands), Sr. Unsec. Notes, 3.00%, 09/01/15(b) | $ | 255,000 | $ | 250,980 | ||||
Unsec. Notes, 3.75%, 03/07/17(b) | 2,035,000 | 2,032,263 | ||||||
| Korea Development Bank (The) (South Korea), Sr. Unsec. Global Notes, 3.50%, 08/22/17 | 730,000 | 737,619 | ||||||
Lloyds TSB Bank PLC (United Kingdom), Sr. Unsec. Gtd. Global Notes, 4.88%, 01/21/16 | 1,040,000 | 1,077,474 | ||||||
Sr. Unsec. Gtd. Medium-Term Notes, 5.80%, 01/13/20(b) | 725,000 | 753,224 | ||||||
Unsec. Gtd. Sub. Medium-Term Notes, 6.50%, 09/14/20(b) | 955,000 | 920,167 | ||||||
Nordea Bank A.B. (Sweden), Sr. Unsec. Notes, 4.88%, 01/27/20(b) | 575,000 | 598,450 | ||||||
RBS Capital Trust II, Jr. Unsec. Gtd. Sub. Global Bonds, 6.43% 6.43%, 12/29/49(e)(f) | 11,000 | 7,645 | ||||||
Royal Bank of Scotland PLC (The) (United Kingdom), Sr. Unsec. Gtd. Global Notes, 4.88%, 03/16/15 | 975,000 | 1,014,107 | ||||||
Series 2, Sr. Unsec. Gtd. Global Notes, 3.40%, 08/23/13 | 475,000 | 482,393 | ||||||
Santander U.S. Debt S.A. Unipersonal (Spain), Sr. Unsec. Gtd. Notes, 3.72%, 01/20/15(b) | 700,000 | 669,443 | ||||||
Sberbank Via SB Capital S.A. (Russia), 6.13%, 02/07/22(b) | 200,000 | 204,121 | ||||||
Societe Generale S.A. (France), Sr. Unsec. Medium-Term Notes, 5.20%, 04/15/21(b) | 1,500,000 | 1,465,522 | ||||||
Sr. Unsec. Notes, 2.50%, 01/15/14(b) | 1,940,000 | 1,896,015 | ||||||
Standard Chartered Bank (United Kingdom), Unsec. Sub. Notes, 6.40%, 09/26/17(b) | 420,000 | 459,524 | ||||||
| Standard Chartered PLC (United Kingdom), Sr. Unsec. Notes, | ||||||||
5.50%, 11/18/14(b) | 1,880,000 | 2,015,680 | ||||||
3.85%, 04/27/15(b) | 775,000 | 800,940 | ||||||
| U.S. Bancorp., Sr. Unsec. Notes, 2.00%, 06/14/13 | 45,000 | 45,869 | ||||||
U.S. Bank N.A., Sub. Variable Rate Notes, 3.78%, 04/29/20(d) | 1,400,000 | 1,461,351 | ||||||
| VTB Bank OJSC Via VTB Capital S.A. (Luxembourg), Sr. Unsec. Loan Participation Notes, | ||||||||
6.32%, 02/22/18(b) | 1,415,000 | 1,432,065 | ||||||
6.55%, 10/13/20(b) | 660,000 | 660,638 | ||||||
| 27,909,637 | ||||||||
| Diversified Capital Markets–0.55% | ||||||||
| Credit Suisse AG (Switzerland), Sub. Global Notes, 5.40%, 01/14/20 | 545,000 | 548,490 | ||||||
UBS AG (Switzerland), Sr. Unsec. Global Notes, 5.88%, 12/20/17 | 200,000 | 221,804 | ||||||
Sr. Unsec. Medium-Term Bank Notes, 3.88%, 01/15/15 | 560,000 | 580,718 | ||||||
Sr. Unsec. Medium-Term Global Notes, 5.75%, 04/25/18 | 1,200,000 | 1,322,346 | ||||||
| 2,673,358 | ||||||||
| Diversified Chemicals–0.02% | ||||||||
| Huntsman International LLC, | ||||||||
Sr. Unsec. Gtd. Global Notes, 5.50%, 06/30/16 | 10,000 | 10,013 | ||||||
Sr. Unsec. Gtd. Sub. Global Notes, 8.63%, 03/15/21 | 73,000 | 82,946 | ||||||
| 92,959 | ||||||||
| Diversified Metals & Mining–0.99% | ||||||||
Anglo American Capital PLC (United Kingdom), Sr. Unsec. Gtd. Notes, 9.38%, 04/08/19(b) | 170,000 | 221,234 | ||||||
Freeport-McMoRan Copper & Gold Inc., Sr. Unsec. Global Notes, 3.55%, 03/01/22 | 500,000 | 499,054 | ||||||
Sr. Unsec. Notes, 8.38%, 04/01/17 | 3,150,000 | 3,301,200 | ||||||
Midwest Vanadium Pty. Ltd. (Australia), Sr. Sec. Gtd. Mortgage Notes, 11.50%, 02/15/18(b) | 45,000 | 31,727 | ||||||
| Southern Copper Corp., Sr. Unsec. Global Notes, | ||||||||
| 5.38%, 04/16/20 | 150,000 | 165,973 | ||||||
| 6.75%, 04/16/40 | 225,000 | 247,382 | ||||||
Vedanta Resources PLC (United Kingdom), Sr. Unsec. Notes, 9.50%, 07/18/18(b) | 100,000 | 103,017 | ||||||
| Volcan Cia Minera S.A.A (Peru), Sr. Unsec. Notes, 5.38%, 02/02/22 | 190,000 | 198,971 | ||||||
| 4,768,558 | ||||||||
| Diversified REIT’s–0.84% | ||||||||
Dexus Diversified Trust/Dexus Office Trust (Australia), Sr. Unsec. Gtd. Notes, 5.60%, 03/15/21(b) | 2,765,000 | 2,807,058 | ||||||
Qatari Diar Finance QSC (Qatar), Unsec. Gtd. Unsub. Notes, 5.00%, 07/21/20(b) | 1,175,000 | 1,250,618 | ||||||
| 4,057,676 | ||||||||
| Diversified Support Services–0.11% | ||||||||
| International Lease Finance Corp., Sr. Unsec. Global Notes, | ||||||||
| 8.63%, 09/15/15 | 5,000 | 5,582 | ||||||
| 5.75%, 05/15/16 | 400,000 | 407,750 | ||||||
| 6.25%, 05/15/19 | 100,000 | 102,250 | ||||||
| 515,582 | ||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Core Plus Bond Fund
| Principal | ||||||||
| Amount | Value | |||||||
| Drug Retail–0.12% | ||||||||
| CVS Pass Through Trust, | ||||||||
Sec. Global Pass Through Ctfs., 6.04%, 12/10/28 | $ | 212,403 | $ | 232,988 | ||||
Sec. Mortgage Pass Through Ctfs., 8.35%, 07/10/31(b) | 281,364 | 348,202 | ||||||
| 581,190 | ||||||||
| Electric Utilities–1.91% | ||||||||
Comission Federal de Electridad (Mexico), Sr. Unsec. Notes, 5.75%, 02/14/42(b) | 200,000 | 198,599 | ||||||
DCP Midstream LLC, Sr. Unsec. Notes, 9.75%, 03/15/19(b) | 1,254,000 | 1,645,815 | ||||||
Enel Finance International N.V. (Luxembourg), Sr. Unsec. Gtd. Notes, 3.88%, 10/07/14(b) | 1,270,000 | 1,286,215 | ||||||
| LSP Energy L.P./LSP Batesville Funding Corp.–Series D, Sr. Sec. Bonds, 8.16%, 07/15/25 | 5,000 | 4,200 | ||||||
Majapahit Holding B.V. (Netherlands), Sr. Unsec. Gtd. Notes, 7.75%, 01/20/20(b) | 100,000 | 121,444 | ||||||
| Ohio Power Co.–Series M, Sr. Unsec. Notes, 5.38%, 10/01/21 | 2,715,000 | 3,180,067 | ||||||
| PPL Electric Utilities Corp., Sec. First Mortgage Bonds, 6.25%, 05/15/39 | 770,000 | 1,038,559 | ||||||
| Virginia Electric & Power Co., Sr. Unsec. Notes, | ||||||||
| 5.10%, 11/30/12 | 780,000 | 806,179 | ||||||
| 5.00%, 06/30/19 | 800,000 | 937,476 | ||||||
| 9,218,554 | ||||||||
| Electrical Components & Equipment–0.01% | ||||||||
| Belden Inc., Sr. Gtd. Sub. Global Notes, 9.25%, 06/15/19 | 5,000 | 5,425 | ||||||
| Polypore International Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 11/15/17 | 55,000 | 58,025 | ||||||
| 63,450 | ||||||||
| Electronic Components–0.30% | ||||||||
| Corning, Inc., Sr. Unsec. Notes, | ||||||||
| 6.63%, 05/15/19 | 85,000 | 103,313 | ||||||
| 7.25%, 08/15/36 | 135,000 | 163,576 | ||||||
| 4.75%, 03/15/42 | 1,155,000 | 1,176,876 | ||||||
| 1,443,765 | ||||||||
| Electronic Manufacturing Services–0.03% | ||||||||
Sanmina-SCI Corp., Sr. Unsec. Gtd. Notes, 7.00%, 05/15/19(b) | 122,000 | 124,592 | ||||||
| Environmental & Facilities Services–0.24% | ||||||||
| Waste Management, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 03/15/14 | 1,050,000 | 1,133,926 | ||||||
| Forest Products–0.03% | ||||||||
Celulosa Arauco y Constitucion S.A. (Chile), Sr. Unsec. Notes, 4.75%, 01/11/22(b) | 110,000 | 111,997 | ||||||
Millar Western Forest Products Ltd. (Canada), Sr. Unsec. Notes, 8.50%, 04/01/21(b) | 20,000 | 15,250 | ||||||
| 127,247 | ||||||||
| Gas Utilities–0.03% | ||||||||
| Ferrellgas L.P./Ferrellgas Finance Corp., Sr. Unsec. Global Notes, 6.50%, 05/01/21 | 58,000 | 51,765 | ||||||
| Suburban Propane Partners, L.P./Suburban Energy Finance Corp., Sr. Unsec. Notes, 7.38%, 03/15/20 | 80,000 | 85,600 | ||||||
| 137,365 | ||||||||
| Gold–1.27% | ||||||||
| Barrick Gold Corp. (Canada), Sr. Unsec. Global Notes, 2.90%, 05/30/16 | 1,210,000 | 1,277,678 | ||||||
Gold Fields Orogen Holding BVI Ltd. (British Virgin Islands), Sr. Unsec. Gtd. Notes, 4.88%, 10/07/20(b) | 2,135,000 | 2,047,026 | ||||||
| Kinross Gold Corp. (Canada), Sr. Unsec. Gtd. Notes, | ||||||||
5.13%, 09/01/21(b) | 1,365,000 | 1,368,852 | ||||||
6.88%, 09/01/41(b) | 1,365,000 | 1,430,716 | ||||||
| 6,124,272 | ||||||||
| Health Care Equipment–0.14% | ||||||||
| Boston Scientific Corp., Sr. Unsec. Notes, 4.50%, 01/15/15 | 605,000 | 650,043 | ||||||
| CareFusion Corp., Sr. Unsec. Global Notes, 4.13%, 08/01/12 | 25,000 | 25,310 | ||||||
| 675,353 | ||||||||
| Health Care Facilities–0.08% | ||||||||
| HCA, Inc., Sr. Sec. Gtd. Global Notes, | ||||||||
| 7.88%, 02/15/20 | 42,000 | 46,410 | ||||||
| 5.88%, 03/15/22 | 90,000 | 92,475 | ||||||
| HealthSouth Corp., Sr. Unsec. Gtd. Notes, | ||||||||
| 7.25%, 10/01/18 | 10,000 | 10,825 | ||||||
| 8.13%, 02/15/20 | 45,000 | 49,725 | ||||||
| 7.75%, 09/15/22 | 5,000 | 5,463 | ||||||
Select Medical Holdings Corp., Sr. Unsec. Floating Rate Global Notes, 6.27%, 09/15/15(d) | 9,000 | 8,010 | ||||||
| Tenet Healthcare Corp., Sr. Unsec. Global Notes, | ||||||||
| 9.25%, 02/01/15 | 145,000 | 162,400 | ||||||
| 8.00%, 08/01/20 | 27,000 | 28,822 | ||||||
| 404,130 | ||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Core Plus Bond Fund
| Principal | ||||||||
| Amount | Value | |||||||
| Health Care Services–1.08% | ||||||||
| Express Scripts, Inc., | ||||||||
| Sr. Unsec. Gtd. Global Notes, | ||||||||
| 5.25%, 06/15/12 | $ | 50,000 | $ | 50,661 | ||||
| 6.25%, 06/15/14 | 2,525,000 | 2,783,264 | ||||||
Sr. Unsec. Gtd. Notes, 3.13%, 05/15/16 | 190,000 | 196,467 | ||||||
| Highmark, Inc., Sr. Unsec. Notes, | ||||||||
4.75%, 05/15/21(b) | 785,000 | 801,510 | ||||||
6.13%, 05/15/41(b) | 730,000 | 784,752 | ||||||
| Medco Health Solutions Inc., Sr. Unsec. Notes, 2.75%, 09/15/15 | 585,000 | 594,344 | ||||||
Universal Hospital Services Inc., Sec. Gtd. Global Variable Rate Notes, 8.50%, 06/01/15(d) | 15,000 | 15,487 | ||||||
| 5,226,485 | ||||||||
| Health Care Technology–0.01% | ||||||||
| MedAssets Inc., Sr. Unsec. Gtd. Global Notes, 8.00%, 11/15/18 | 45,000 | 48,488 | ||||||
| Homebuilding–0.07% | ||||||||
| Beazer Homes USA Inc., Sr. Unsec. Gtd. | ||||||||
| Global Notes, | ||||||||
| 6.88%, 07/15/15 | 80,000 | 75,200 | ||||||
| 8.13%, 06/15/16 | 27,000 | 25,245 | ||||||
| K. Hovnanian Enterprises Inc., Sr. Sec. Gtd. Global Notes, 10.63%, 10/15/16 | 165,000 | 154,687 | ||||||
| KB Home, Sr. Unsec. Gtd. Notes, 8.00%, 03/15/20 | 16,000 | 16,200 | ||||||
| Lennar Corp., Sr. Unsec. Gtd. Global Notes, 6.95%, 06/01/18 | 52,000 | 55,120 | ||||||
| M/I Homes Inc., Sr. Unsec. Gtd. Global Notes, 8.63%, 11/15/18 | 15,000 | 14,288 | ||||||
| Toll Brothers Finance Corp., Sr. Unsec. Gtd. Notes, 5.88%, 02/15/22 | 18,000 | 18,772 | ||||||
| 359,512 | ||||||||
| Hotels, Resorts & Cruise Lines–1.20% | ||||||||
| CityCenter Holdings LLC/CityCenter Finance Corp., Sec. Gtd. Global PIK Notes, 10.75%, 01/15/17 | 58,455 | 63,424 | ||||||
| Hyatt Hotels Corp., Sr. Unsec. Notes, | ||||||||
5.75%, 08/15/15(b) | 2,415,000 | 2,650,940 | ||||||
6.88%, 08/15/19(b) | 120,000 | 134,159 | ||||||
| Royal Caribbean Cruises Ltd., Sr. Unsec. Global Notes, 7.50%, 10/15/27 | 10,000 | 10,150 | ||||||
| Wyndham Worldwide Corp., Sr. Unsec. Notes, | ||||||||
| 7.38%, 03/01/20 | 1,035,000 | 1,268,951 | ||||||
| 5.63%, 03/01/21 | 1,530,000 | 1,677,263 | ||||||
| 5,804,887 | ||||||||
| Household Products–0.01% | ||||||||
| Central Garden & Pet Co., Sr. Gtd. Sub. Notes, 8.25%, 03/01/18 | 65,000 | 66,625 | ||||||
| Housewares & Specialties–0.01% | ||||||||
| American Greetings Corp., Sr. Unsec. Gtd. Notes, 7.38%, 12/01/21 | 35,000 | 36,313 | ||||||
| Independent Power Producers & Energy Traders–0.06% | ||||||||
AES Corp. (The), Sr. Unsec. Global Notes, 7.75%, 10/15/15 | 10,000 | 11,250 | ||||||
| 8.00%, 10/15/17 | 140,000 | 162,050 | ||||||
Calpine Corp., Sr. Sec. Gtd. Notes, 7.50%, 02/15/21(b) | 18,000 | 19,575 | ||||||
Sr. Sec. Notes,7.25%, 10/15/17(b) | 55,000 | 58,575 | ||||||
| NRG Energy Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 01/15/18 | 30,000 | 30,600 | ||||||
| 282,050 | ||||||||
| Industrial Conglomerates–0.85% | ||||||||
| General Electric Capital Corp., Sr. Unsec. Notes, 2.25%, 11/09/15 | 65,000 | 67,023 | ||||||
| Hutchison Whampoa International Ltd. (Hong Kong), Sr. Unsec. Gtd. Notes, | ||||||||
3.50%, 01/13/17(b) | 200,000 | 202,695 | ||||||
7.63%, 04/09/19(b) | 925,000 | 1,127,667 | ||||||
Unsec. Gtd. Notes, 5.75%, 09/11/19(b) | 1,000,000 | 1,111,200 | ||||||
Unsec. Gtd. Sub. Variable Rate Notes, 6.00%, 12/29/49(b)(d)(e) | 200,000 | 204,000 | ||||||
Sigma Alimentos S.A. de C.V. (Mexico), Sr. Unsec. Gtd. Notes, 5.63%, 04/14/18(b) | 1,350,000 | 1,402,147 | ||||||
| 4,114,732 | ||||||||
| Industrial Machinery–0.63% | ||||||||
Cleaver-Brooks Inc., Sr. Sec. Notes, 12.25%, 05/01/16(b) | 5,000 | 5,225 | ||||||
| Pentair, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 05/15/21 | 2,810,000 | 2,995,349 | ||||||
| SPX Corp., Sr. Unsec. Gtd. Global Notes, 6.88%, 09/01/17 | 20,000 | 22,350 | ||||||
| 3,022,924 | ||||||||
| Integrated Oil & Gas–0.52% | ||||||||
Gazprom OAO Via Gaz Capital S.A. (Luxembourg), Sr. Unsec. Loan Participation Notes, 4.95%, 05/23/16(b) | 200,000 | 209,235 | ||||||
Lukoil International Finance B.V. (Netherlands), Sr. Unsec. Gtd. Notes, 7.25%, 11/05/19(b) | NLG | 100,000 | 112,534 | |||||
Petrobras International Finance Co. (Brazil), Sr. Unsec. Gtd. Global Notes, 3.50%, 02/06/17 | 1,595,000 | 1,629,965 | ||||||
| 5.38%, 01/27/21 | 140,000 | 149,864 | ||||||
Petroleos de Venezuela S.A. (Venezuela), Sr. Unsec. Gtd. Notes, 8.50%, 11/02/17(b) | 200,000 | 182,332 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Core Plus Bond Fund
| Principal | ||||||||
| Amount | Value | |||||||
Integrated Oil & Gas–(continued) | ||||||||
Petroleos de Venezuela S.A. (Venezuela), REGS, Sr. Unsec. Gtd. Euro Notes, 8.50%, 11/02/17(b) | $ | 110,000 | $ | 100,925 | ||||
Petroleos Mexicanos (Mexico), Sr. Unsec. Gtd. Notes, 6.50%, 06/02/41(b) | 100,000 | 114,555 | ||||||
| 2,499,410 | ||||||||
| Integrated Telecommunication Services–0.74% | ||||||||
| AT&T Corp., Sr. Unsec. Gtd. Global Notes, 8.00%, 11/15/31 | 13,000 | 18,807 | ||||||
| AT&T Inc., Sr. Unsec. Global Notes, | ||||||||
| 2.95%, 05/15/16 | 160,000 | 170,532 | ||||||
| 4.45%, 05/15/21 | 85,000 | 95,828 | ||||||
| AT&T, Inc., Sr. Unsec. Global Notes, 2.50%, 08/15/15 | 905,000 | 949,684 | ||||||
| France Telecom S.A. (France), Sr. Unsec. Global Notes, 5.38%, 01/13/42 | 290,000 | 317,600 | ||||||
Indosat Palapa Co. B.V. (Netherlands), Sr. Unsec. Gtd. Notes, 7.38%, 07/29/20(b) | 200,000 | 226,080 | ||||||
Integra Telecom Holdings Inc., Sr. Sec. Notes, 10.75%, 04/15/16(b) | 10,000 | 8,750 | ||||||
| Oi S.A. (Brazil), 5.75%, 02/10/22 | 200,000 | 206,193 | ||||||
| Telefonica Emisiones S.A. Unipersonal (Spain), Sr. Unsec. Gtd. Global Notes, 5.46%, 02/16/21 | 415,000 | 418,751 | ||||||
| Verizon Communications, Inc., Sr. Unsec. Global Notes, 4.75%, 11/01/41 | 590,000 | 633,785 | ||||||
| Windstream Georgia Communications Corp., Sr. Unsec. Notes, 6.50%, 11/15/13 | 531,000 | 544,024 | ||||||
| 3,590,034 | ||||||||
| Internet Software & Services–0.03% | ||||||||
| Equinix Inc., Sr. Unsec. Notes, | ||||||||
| 8.13%, 03/01/18 | 15,000 | 16,875 | ||||||
| 7.00%, 07/15/21 | 100,000 | 111,250 | ||||||
| 128,125 | ||||||||
| Investment Banking & Brokerage–3.21% | ||||||||
Cantor Fitzgerald L.P., Bonds, 7.88%, 10/15/19(b) | 1,100,000 | 1,098,739 | ||||||
Charles Schwab Corp. (The), Jr. Unsec. Sub. Variable Rate Notes, 7.00%, 12/31/49(d) | 2,400,000 | 2,517,210 | ||||||
| E*Trade Financial Corp., Sr. Unsec. Notes, 6.75%, 06/01/16 | 5,000 | 5,087 | ||||||
| Goldman Sachs Group, Inc. (The), Sr. Unsec. Global Notes, | ||||||||
| 5.13%, 01/15/15 | 780,000 | 830,030 | ||||||
| 3.70%, 08/01/15 | 660,000 | 673,248 | ||||||
| 5.25%, 07/27/21 | 1,110,000 | 1,111,058 | ||||||
| 5.75%, 01/24/22 | 3,405,000 | 3,566,939 | ||||||
Unsec. Sub. Global Notes, 6.75%, 10/01/37 | 520,000 | 520,500 | ||||||
Macquarie Group Ltd. (Australia), Sr. Unsec. Notes, 6.00%, 01/14/20(b) | 505,000 | 474,996 | ||||||
| Morgan Stanley, Sr. Unsec. Global Notes, | ||||||||
| 6.00%, 05/13/14 | 955,000 | 998,282 | ||||||
| 4.00%, 07/24/15 | 450,000 | 449,247 | ||||||
| Sr. Unsec. Notes, | ||||||||
| 2.88%, 01/24/14 | 100,000 | 99,276 | ||||||
| 3.45%, 11/02/15 | 2,010,000 | 1,974,308 | ||||||
| 5.75%, 01/25/21 | 985,000 | 979,416 | ||||||
| Raymond James Financial, Inc., Sr. Unsec. Notes, 4.25%, 04/15/16 | 170,000 | 177,369 | ||||||
| 15,475,705 | ||||||||
| Leisure Facilities–0.01% | ||||||||
| Speedway Motorsports Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 02/01/19 | 25,000 | 26,281 | ||||||
| Leisure Products–0.01% | ||||||||
Toys R US-Delaware Inc., Sr. Sec. Gtd. Notes, 7.38%, 09/01/16(b) | 70,000 | 72,275 | ||||||
| Life & Health Insurance–1.44% | ||||||||
Forethought Financial Group, Inc., Sr. Unsec. Notes, 8.63%, 04/15/21(b) | 50,000 | 49,687 | ||||||
Nationwide Financial Services, Inc., Sr. Unsec. Notes, 5.38%, 03/25/21(b) | 735,000 | 727,778 | ||||||
Pacific Life Global Funding, Sr. Sec. Notes, 5.15%, 04/15/13(b) | 1,385,000 | 1,445,937 | ||||||
Pacific LifeCorp., Sr. Unsec. Notes, 6.00%, 02/10/20(b) | 425,000 | 468,845 | ||||||
Prudential Financial, Inc., Jr. Unsec. Sub. Variable Rate Global Notes, 8.88%, 06/15/38(d) | 1,640,000 | 1,955,700 | ||||||
Series D, Sr. Unsec. Disc. Medium-Term Notes, 4.75%, 09/17/15 | 550,000 | 602,363 | ||||||
| Sr. Unsec. Medium-Term Notes, | ||||||||
| 2.75%, 01/14/13 | 50,000 | 50,815 | ||||||
| 3.88%, 01/14/15 | 1,405,000 | 1,488,803 | ||||||
| 7.38%, 06/15/19 | 130,000 | 161,703 | ||||||
| 6,951,631 | ||||||||
| Life Sciences Tools & Services–0.48% | ||||||||
| Life Technologies Corp., Sr. Notes, 6.00%, 03/01/20 | 2,005,000 | 2,325,086 | ||||||
Patheon Inc. (Canada), Sr. Sec. Gtd. Notes, 8.63%, 04/15/17(b) | 5,000 | 4,525 | ||||||
| 2,329,611 | ||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Core Plus Bond Fund
| Principal | ||||||||
| Amount | Value | |||||||
| Managed Health Care–1.17% | ||||||||
| Cigna Corp., | ||||||||
| Sr. Unsec. Global Notes, | ||||||||
| 2.75%, 11/15/16 | $ | 1,235,000 | $ | 1,261,585 | ||||
| 5.38%, 02/15/42 | 1,730,000 | 1,843,547 | ||||||
| Sr. Unsec. Notes, | ||||||||
| 4.50%, 03/15/21 | 180,000 | 194,109 | ||||||
| 5.88%, 03/15/41 | 125,000 | 142,639 | ||||||
| UnitedHealth Group, Inc., Sr. Unsec. Notes, 4.88%, 02/15/13 | 2,120,000 | 2,209,069 | ||||||
| 5,650,949 | ||||||||
| Marine–0.00% | ||||||||
| Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S. Inc. (Greece), Sr. Sec. Gtd. Global Notes, 8.63%, 11/01/17 | 2,000 | 1,670 | ||||||
| Metal & Glass Containers–0.00% | ||||||||
| Ball Corp., Sr. Unsec. Gtd. Notes, 5.00%, 03/15/22 | 10,000 | 10,250 | ||||||
| Mortgage Backed Securities–0.14% | ||||||||
| U.S. Bank N.A., Sr. Unsec. Medium-Term Notes, 5.92%, 05/25/12 | 679,932 | 687,910 | ||||||
| Movies & Entertainment–0.33% | ||||||||
| AMC Entertainment Inc., Sr. Unsec. Gtd. Global Notes, 8.75%, 06/01/19 | 95,000 | 99,394 | ||||||
NAI Entertainment Holdings LLC, Sr. Sec. Notes, 8.25%, 12/15/17(b) | 30,000 | 33,225 | ||||||
Time Warner, Inc., Sr. Unsec. Gtd. Global Notes, 5.38%, 10/15/41 | 1,000,000 | 1,111,779 | ||||||
Sr. Unsec. Gtd. Notes, 5.88%, 11/15/16 | 285,000 | 337,223 | ||||||
| 1,581,621 | ||||||||
| Multi-Line Insurance–0.41% | ||||||||
| American Financial Group, Inc., Sr. Unsec. Notes, 9.88%, 06/15/19 | 10,000 | 12,498 | ||||||
| CNA Financial Corp., Sr. Unsec. Global Bonds, 5.88%, 08/15/20 | 20,000 | 21,717 | ||||||
Fairfax Financial Holdings Ltd. (Canada), Sr. Unsec. Notes, 5.80%, 05/15/21(b) | 3,000 | 2,801 | ||||||
Hartford Financial Services Group Inc., Jr. Unsec. Sub. Variable Rate Deb., 8.13%, 06/15/38(d) | 75,000 | 80,250 | ||||||
Liberty Mutual Group Inc., Jr. Unsec. Gtd. Sub. Bonds, 7.80%, 03/15/37 (Acquired 02/08/11-09/01/11; Cost $318,375)(b) | 320,000 | 313,600 | ||||||
Metropolitan Life Global Funding I, Sr. Sec. Global Notes, 5.13%, 04/10/13(b) | 1,460,000 | 1,529,625 | ||||||
Nationwide Mutual Insurance Co., Unsec. Sub. Notes, 9.38%, 08/05/39(b) | 25,000 | 31,332 | ||||||
| 1,991,823 | ||||||||
| Multi-Utilities–0.04% | ||||||||
Abu Dhabi National Energy Co. (Vietnam), Sr. Unsec. Notes, 5.88%, 12/13/21(b) | 200,000 | 210,489 | ||||||
| Office REIT’s–0.15% | ||||||||
| Digital Realty Trust L.P., Sr. Unsec. Gtd. Global Notes, 4.50%, 07/15/15 | 675,000 | 705,490 | ||||||
| DuPont Fabros Technology L.P., Sr. Unsec. Gtd. Global Notes, 8.50%, 12/15/17 | 30,000 | 33,300 | ||||||
| 738,790 | ||||||||
| Office Services & Supplies–0.24% | ||||||||
| IKON Office Solutions, Inc., Sr. Unsec. Notes, 6.75%, 12/01/25 | 5,000 | 4,900 | ||||||
| Steelcase, Inc., Sr. Unsec. Notes, 6.38%, 02/15/21 | 1,090,000 | 1,138,363 | ||||||
| 1,143,263 | ||||||||
| Oil & Gas Drilling–0.45% | ||||||||
| Atwood Oceanics Inc., Sr. Unsec. Notes, 6.50%, 02/01/20 | 6,000 | 6,375 | ||||||
| Transocean Inc., Sr. Unsec. Gtd. Global Notes, 4.95%, 11/15/15 | 930,000 | 1,003,779 | ||||||
| Transocean Inc. (Cayman Islands), Sr. Unsec. Gtd. Global Notes, 6.38%, 12/15/21 | 1,000,000 | 1,180,338 | ||||||
| 2,190,492 | ||||||||
| Oil & Gas Equipment & Services–0.05% | ||||||||
| Bristow Group, Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 09/15/17 | 82,000 | 86,305 | ||||||
| Key Energy Services, Inc., Sr. Unsec. Gtd. Notes, 6.75%, 03/01/21 | 90,000 | 94,725 | ||||||
| SESI, LLC, Sr. Unsec. Gtd. Global Notes, 6.38%, 05/01/19 | 77,000 | 81,427 | ||||||
| 262,457 | ||||||||
| Oil & Gas Exploration & Production–1.20% | ||||||||
| Anadarko Petroleum Corp., Sr. Unsec. Notes, 7.63%, 03/15/14 | 50,000 | 55,913 | ||||||
| Berry Petroleum Co., Sr. Unsec. Notes, 6.75%, 11/01/20 | 80,000 | 85,400 | ||||||
| Chaparral Energy Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 09/01/21 | 115,000 | 124,775 | ||||||
| Chesapeake Energy Corp., Sr. Unsec. Gtd. Notes, | ||||||||
| 6.63%, 08/15/20 | 91,000 | 95,209 | ||||||
| 6.13%, 02/15/21 | 5,000 | 5,063 | ||||||
| Cimarex Energy Co., Sr. Unsec. Gtd. Notes, 7.13%, 05/01/17 | 75,000 | 78,375 | ||||||
Continental Resources Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 10/01/19 | 45,000 | 50,625 | ||||||
| 7.13%, 04/01/21 | 50,000 | 55,938 | ||||||
Dolphin Energy Ltd. (Vietnam), Sr. Sec. Bonds, 5.50%, 12/15/21(b) | 200,000 | 208,772 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 Invesco Core Plus Bond Fund
| Principal | ||||||||
| Amount | Value | |||||||
Oil & Gas Exploration & Production–(continued) | ||||||||
| EXCO Resources Inc., Sr. Unsec. Gtd. Notes, 7.50%, 09/15/18 | $ | 121,000 | $ | 108,598 | ||||
| Forest Oil Corp., Sr. Unsec. Gtd. Global Notes, 7.25%, 06/15/19 | 40,000 | 40,400 | ||||||
Gazprom OAO Via Gaz Capital S.A. (Luxembourg), Sr. Unsec. Loan Participation Notes, 6.51%, 03/07/22(b) | 100,000 | 109,000 | ||||||
| McMoRan Exploration Co., Sr. Unsec. Gtd. Notes, 11.88%, 11/15/14 | 75,000 | 79,641 | ||||||
| Newfield Exploration Co., Sr. Unsec. Sub. Global Notes, 7.13%, 05/15/18 | 85,000 | 90,950 | ||||||
OGX Petroleo e Gas Participacoes S.A. (Brazil), Sr. Unsec. Gtd. Notes, 8.50%, 06/01/18(b) | 200,000 | 209,070 | ||||||
Pacific Rubiales Energy Corp. (Canada), Sr. Unsec. Gtd. Notes, 7.25%, 12/12/21(b) | 100,000 | 105,204 | ||||||
| Pemex Project Funding Master Trust, Sr. Unsec. Gtd. Global Bonds, 6.63%, 06/15/35 | 340,000 | 388,712 | ||||||
| Petrobras International Finance Co. (Cayman Islands), Sr. Unsec. Gtd. Global Notes, 5.75%, 01/20/20 | 645,000 | 712,486 | ||||||
| Petrobras International Finance Co. (Brazil), Sr. Unsec. Gtd. Global Notes, 6.88%, 01/20/40 | 625,000 | 736,244 | ||||||
| Petrohawk Energy Corp., Sr. Unsec. Gtd. Global Notes, 7.88%, 06/01/15 | 1,930,000 | 2,043,387 | ||||||
| Petroleos Mexicanos (Mexico), Sr. Unsec. Gtd. Global Notes, 5.50%, 01/21/21 | 20,000 | 21,992 | ||||||
| Plains Exploration & Production Co., Sr. Unsec. Gtd. Notes, | ||||||||
| 7.63%, 06/01/18 | 100,000 | 108,000 | ||||||
| 8.63%, 10/15/19 | 5,000 | 5,650 | ||||||
| QEP Resources Inc., Sr. Unsec. Notes, 5.38%, 10/01/22 | 30,000 | 30,450 | ||||||
| Range Resources Corp., Sr. Unsec. Gtd. Sub. Notes, | ||||||||
| 5.75%, 06/01/21 | 75,000 | 80,438 | ||||||
| 5.00%, 08/15/22 | 10,000 | 10,150 | ||||||
SM Energy Co., Sr. Unsec. Global Notes, 6.63%, 02/15/19 | 15,000 | 16,200 | ||||||
Sr. Unsec. Notes, 6.50%, 11/15/21(b) | 25,000 | 27,250 | ||||||
| Whiting Petroleum Corp., Sr. Unsec. Gtd. Sub. Notes, 6.50%, 10/01/18 | 75,000 | 80,719 | ||||||
WPX Energy Inc., Sr. Unsec. Notes, 6.00%, 01/15/22(b) | 35,000 | 36,225 | ||||||
| 5,800,836 | ||||||||
| Oil & Gas Refining & Marketing–0.02% | ||||||||
| United Refining Co., Sr. Sec. Gtd. Global Notes, 10.50%, 02/28/18 | 80,000 | 77,800 | ||||||
| Oil & Gas Storage & Transportation–1.38% | ||||||||
Atlas Pipeline Partners L.P./Atlas Pipeline Finance Corp., Sr. Unsec. Gtd. Notes, 8.75%, 06/15/18(b) | 37,000 | 39,821 | ||||||
Chesapeake Midstream Partners L.P./CHKM Finance Corp., Sr. Unsec. Gtd. Notes, 5.88%, 04/15/21(b) | 66,000 | 67,485 | ||||||
6.13%, 07/15/22(b) | 5,000 | 5,188 | ||||||
| Copano Energy LLC/Copano Energy Finance Corp., Sr. Unsec. Gtd. Notes, 7.13%, 04/01/21 | 132,000 | 140,250 | ||||||
| Energy Transfer Equity L.P., Sr. Sec. Gtd. Notes, 7.50%, 10/15/20 | 82,000 | 94,197 | ||||||
Enterprise Products Operating LLC, Sr. Unsec. Gtd. Global Notes, 5.25%, 01/31/20 | 150,000 | 169,917 | ||||||
Sr. Unsec. Gtd. Notes, 6.45%, 09/01/40 | 1,005,000 | 1,241,985 | ||||||
Series N, Sr. Unsec. Gtd. Notes, 6.50%, 01/31/19 | 420,000 | 503,006 | ||||||
Holly Energy Partners L.P./Holly Energy Finance Corp., Sr. Unsec. Notes, 6.50%, 03/01/20(b) | 7,000 | 7,175 | ||||||
| Inergy L.P./Inergy Finance Corp., Sr. Unsec. Gtd. Global Notes, 6.88%, 08/01/21 | 40,000 | 38,800 | ||||||
| MarkWest Energy Partners L.P./MarkWest Energy Finance Corp., Sr. Unsec. Gtd. Notes, | ||||||||
| 6.50%, 08/15/21 | 130,000 | 141,375 | ||||||
| 6.25%, 06/15/22 | 30,000 | 32,400 | ||||||
| Overseas Shipholding Group, Inc., Sr. Unsec. Notes, 8.13%, 03/30/18 | 35,000 | 22,662 | ||||||
| Regency Energy Partners L.P./Regency Energy Finance Corp., Sr. Unsec. Gtd. Notes, 6.88%, 12/01/18 | 25,000 | 27,156 | ||||||
| Spectra Energy Capital LLC, Sr. Unsec. Gtd. Notes, 5.65%, 03/01/20 | 2,000,000 | 2,269,811 | ||||||
Targa Resources Partners L.P./Targa Resources Partners Finance Corp., Sr. Unsec. Gtd. Global Notes, 6.88%, 02/01/21 | 80,000 | 85,800 | ||||||
Sr. Unsec. Gtd. Notes, 6.38%, 08/01/22(b) | 15,000 | 15,900 | ||||||
| Teekay Corp. (Canada), Sr. Unsec. Global Notes, 8.50%, 01/15/20 | 35,000 | 36,225 | ||||||
| Texas Eastern Transmission L.P., Sr. Unsec. Notes, 7.00%, 07/15/32 | 255,000 | 320,071 | ||||||
| Williams Partners L.P., Sr. Unsec. Global Notes, 3.80%, 02/15/15 | 1,305,000 | 1,381,318 | ||||||
| 6,640,542 | ||||||||
| Other Diversified Financial Services–4.46% | ||||||||
| Bank of America Corp., | ||||||||
| Sr. Unsec. Global Notes, | ||||||||
| 4.50%, 04/01/15 | 40,000 | 40,887 | ||||||
| 3.70%, 09/01/15 | 700,000 | 701,905 | ||||||
| 6.50%, 08/01/16 | 10,000 | 10,917 | ||||||
Series L, Sr. Unsec. Medium-Term Global Notes, 5.65%, 05/01/18 | 220,000 | 230,289 | ||||||
| Bear Stearns Cos., LLC (The), Unsec. Sub. Notes, 5.55%, 01/22/17 | 115,000 | 126,214 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 Invesco Core Plus Bond Fund
| Principal | ||||||||
| Amount | Value | |||||||
Other Diversified Financial Services–(continued) | ||||||||
Citigroup Inc., Sr. Unsec Global Notes, 5.88%, 01/30/42 | $ | 980,000 | $ | 1,063,801 | ||||
| Sr. Unsec. Global Notes, | ||||||||
| 6.01%, 01/15/15 | 2,145,000 | 2,341,229 | ||||||
| 6.13%, 05/15/18 | 330,000 | 369,693 | ||||||
| Citigroup, Inc., Sr. Unsec. Notes, 4.75%, 05/19/15 | 25,000 | 26,537 | ||||||
| Countrywide Financial Corp., Sr. Unsec. Gtd. Medium-Term Global Notes, 5.80%, 06/07/12 | 1,510,000 | 1,528,318 | ||||||
ERAC USA Finance LLC, Sr. Unsec. Gtd. Notes, 5.80%, 10/15/12(b) | 300,000 | 308,602 | ||||||
Unsec. Gtd. Notes, 2.25%, 01/10/14(b) | 2,000,000 | 2,017,245 | ||||||
General Electric Capital Corp., Sr. Unsec. Global Notes, 5.90%, 05/13/14 | 25,000 | 27,644 | ||||||
Series A, Sr. Unsec. Medium-Term Global Notes, 6.88%, 01/10/39 | 890,000 | 1,096,436 | ||||||
Intercorp Retail Trust (Cayman Islands), Sr. Sec. Gtd. Notes, 8.88%, 11/14/18(b) | 250,000 | 255,625 | ||||||
International Lease Finance Corp., Sr. Sec. Notes, 6.50%, 09/01/14(b) | 1,915,000 | 2,041,869 | ||||||
Sr. Unsec. Global Notes, 8.75%, 03/15/17 | 85,000 | 96,209 | ||||||
Sr. Unsec. Notes, 8.25%, 12/15/20 | 155,000 | 173,309 | ||||||
JPMorgan Chase & Co., Sr. Unsec. Floating Rate Medium-Term Notes, 1.14%, 02/26/13(d) | 40,000 | 40,184 | ||||||
| Sr. Unsec. Global Notes, | ||||||||
| 3.15%, 07/05/16 | 750,000 | 773,615 | ||||||
| 6.30%, 04/23/19 | 190,000 | 223,826 | ||||||
| 5.60%, 07/15/41 | 1,825,000 | 2,021,790 | ||||||
| JPMorgan Chase Capital XXVII–Series AA, Jr. Unsec. Gtd. Sub. Notes, 7.00%, 11/01/39 | 2,325,000 | 2,355,415 | ||||||
| Merrill Lynch & Co., Inc.–Series C, Sr. Unsec. Medium-Term Global Notes, 5.45%, 02/05/13 | 3,530,000 | 3,620,490 | ||||||
Twin Reefs Pass-Through Trust, Sec. Pass Through Ctfs., 1.39%, (Acquired 10/07/04-10/03/06; Cost $1,104,600)(b)(c)(e) | 1,110,000 | — | ||||||
| 21,492,049 | ||||||||
| Packaged Foods & Meats–0.65% | ||||||||
| Del Monte Corp., Sr. Unsec. Gtd. Global Notes, 7.63%, 02/15/19 | 75,000 | 75,375 | ||||||
| Grupo Bimbo S.A.B. de C.V. (Mexico), Sr. Unsec. Gtd. Notes, | ||||||||
4.88%, 06/30/20(b) | 1,065,000 | 1,141,679 | ||||||
4.50%, 01/25/22(b) | 100,000 | 103,812 | ||||||
| Kraft Foods Inc., Sr. Unsec. Global Notes, 2.63%, 05/08/13 | 960,000 | 980,506 | ||||||
Kraft Foods, Inc., Sr. Unsec. Global Notes, 5.38%, 02/10/20 | 460,000 | 537,123 | ||||||
| 7.00%, 08/11/37 | 70,000 | 92,667 | ||||||
MHP S.A. (Luxembourg), Sr. Unsec. Gtd. Notes, 10.25%, 04/29/15(b) | 200,000 | 193,325 | ||||||
Post Holdings Inc., Sr. Unsec. Notes, 7.38%, 02/15/22(b) | 10,000 | 10,725 | ||||||
| 3,135,212 | ||||||||
| Paper Packaging–0.00% | ||||||||
| Cascades Inc. (Canada), Sr. Unsec. Gtd. Global Notes, 7.88%, 01/15/20 | 10,000 | 10,275 | ||||||
| Paper Products–0.36% | ||||||||
| Boise Cascade LLC, Sr. Unsec. Gtd. Sub. Global Notes, 7.13%, 10/15/14 | 128,000 | 129,200 | ||||||
| Clearwater Paper Corp., Sr. Unsec. Gtd. Global Notes, 7.13%, 11/01/18 | 20,000 | 21,325 | ||||||
| International Paper Co., Sr. Unsec. Global Notes, | ||||||||
| 4.75%, 02/15/22 | 500,000 | 547,067 | ||||||
| 6.00%, 11/15/41 | 795,000 | 923,552 | ||||||
| Mercer International Inc., Sr. Unsec. Gtd. Global Notes, 9.50%, 12/01/17 | 70,000 | 73,500 | ||||||
NewPage Corp., Sr. Sec. Gtd. Global Notes, 11.38%, 12/31/14(c) | 40,000 | 24,100 | ||||||
| P.H. Glatfelter Co., Sr. Unsec. Gtd. Global Notes, 7.13%, 05/01/16 | 20,000 | 20,475 | ||||||
| 1,739,219 | ||||||||
| Personal Products–0.01% | ||||||||
| NBTY Inc., Sr. Unsec. Gtd. Global Notes, 9.00%, 10/01/18 | 60,000 | 66,450 | ||||||
| Pharmaceuticals–0.05% | ||||||||
| Elan Finance PLC/Corp. (Ireland), Sr. Unsec. Gtd. Global Notes, 8.75%, 10/15/16 | 100,000 | 111,000 | ||||||
| Endo Pharmaceuticals Holdings Inc., Sr. Unsec. Gtd. Global Notes, 7.00%, 12/15/20 | 75,000 | 82,688 | ||||||
Mylan Inc., Sr. Unsec. Gtd. Notes, 6.00%, 11/15/18(b) | 35,000 | 36,706 | ||||||
| 230,394 | ||||||||
| Railroads–0.25% | ||||||||
| CSX Corp., | ||||||||
Sr. Unsec. Global Notes, 6.15%, 05/01/37 | 130,000 | 159,096 | ||||||
Sr. Unsec. Notes, 5.50%, 04/15/41 | 900,000 | 1,044,392 | ||||||
| 1,203,488 | ||||||||
| Real Estate Services–0.01% | ||||||||
| CB Richard Ellis Services Inc., Sr. Unsec. Gtd. Global Notes, 6.63%, 10/15/20 | 28,000 | 29,890 | ||||||
| Regional Banks–0.44% | ||||||||
| BB&T Capital Trust II, Jr. Unsec. Ltd. Gtd. Sub. Global Notes, 6.75%, 06/07/36 | 26,000 | 26,554 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 Invesco Core Plus Bond Fund
| Principal | ||||||||
| Amount | Value | |||||||
Regional Banks–(continued) | ||||||||
CIT Group Inc., Sec. Gtd. Bonds, 7.00%, 05/02/17(b) | $ | 75,000 | $ | 75,281 | ||||
Sec. Gtd. Notes, 5.50%, 02/15/19(b) | 20,000 | 20,550 | ||||||
| First Niagara Financial Group Inc., Unsec. Sub. Notes, 7.25%, 12/15/21 | 650,000 | 681,599 | ||||||
Nationwide Building Society (United Kingdom), Sr. Unsec. Notes, 6.25%, 02/25/20(b) | 465,000 | 487,888 | ||||||
| PNC Funding Corp., Sr. Unsec. Gtd. Notes, 6.70%, 06/10/19 | 330,000 | 407,607 | ||||||
Regions Financial Corp., Sr. Unsec. Notes, 5.75%, 06/15/15 | 225,000 | 230,625 | ||||||
Unsec. Sub. Notes, 7.38%, 12/10/37 | 10,000 | 9,200 | ||||||
Synovus Financial Corp., Sr. Unsec. Global Notes, 7.88%, 02/15/19 | 35,000 | 36,225 | ||||||
Unsec. Sub. Global Notes, 5.13%, 06/15/17 | 135,000 | 123,525 | ||||||
| 2,099,054 | ||||||||
| Research & Consulting Services–0.02% | ||||||||
| FTI Consulting Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 10/01/20 | 102,000 | 109,650 | ||||||
| Retail REIT’s–0.06% | ||||||||
WEA Finance LLC, Sr. Unsec. Gtd. Notes, 7.13%, 04/15/18(b) | 250,000 | 299,467 | ||||||
| Semiconductor Equipment–0.06% | ||||||||
Amkor Technology Inc., Sr. Unsec. Global Notes, 7.38%, 05/01/18 | 42,000 | 45,623 | ||||||
| 6.63%, 06/01/21 | 35,000 | 36,706 | ||||||
| Freescale Semiconductor Inc., Sr. Unsec. Gtd. Global Notes, 8.05%, 02/01/20 | 100,000 | 99,500 | ||||||
Sensata Technologies B.V. (Netherlands), Sr. Unsec. Gtd. Notes, 6.50%, 05/15/19(b) | 120,000 | 124,800 | ||||||
| 306,629 | ||||||||
| Semiconductors–0.01% | ||||||||
Freescale Semiconductor Inc., Sr. Sec. Gtd. Notes, 9.25%, 04/15/18(b) | 55,000 | 61,187 | ||||||
| Sovereign Debt–2.71% | ||||||||
| Argentina Boden Bonos (Argentina), Sr. Unsec. Bonds, 7.00%, 10/03/15 | 400,000 | 378,489 | ||||||
| Chile Government International Bond (Chile), Sr. Unsec. Global Notes, 3.25%, 09/14/21 | 290,000 | 300,150 | ||||||
| Columbia Government International Bond (Colombia), Sr. Unsec. Global Bonds, 6.13%, 01/18/41 | 170,000 | 209,083 | ||||||
Dominican Republic International Bond (Mult. Countries), Sr. Unsec. Bonds, 7.50%, 05/06/21(b) | 100,000 | 103,100 | ||||||
Sr. Unsec. Notes, 9.04%, 01/23/18(b) | 65,579 | 72,464 | ||||||
Guatemala Government Bond (Mult. Countries),–REGS, Sr. Unsec. Bonds, 8.13%, 10/06/19(b)(g) | 150,000 | 187,500 | ||||||
REGS, Sr. Unsec. Euro Bonds, 8.13%, 10/06/19(b)(g) | 90,000 | 112,500 | ||||||
| Hungary Government International Bond (Hungary), Sr. Unsec. Global Notes, 4.75%, 02/03/15 | 60,000 | 57,450 | ||||||
Indonesia Government International Bond (Indonesia), Sr. Unsec. Bonds, 6.63%, 02/17/37(b) | 300,000 | 376,500 | ||||||
Lithuania Government International Bond (Lithuania), Sr. Unsec. Notes, 6.13%, 03/09/21(b) | 200,000 | 209,000 | ||||||
Mexico Government International Bond (Mexico), Sr. Unsec. Global Notes, 3.63%, 03/15/22 | 1,800,000 | 1,842,274 | ||||||
Series A, Sr. Unsec. Medium-Term Global Notes, 6.05%, 01/11/40 | 300,000 | 364,500 | ||||||
Pakistan Government International Bond (Pakistan), Unsec. Bonds, 6.88%, 06/01/17(b) | 175,000 | 127,750 | ||||||
| Panama Government International Bond (Panama), Sr. Unsec. Global Bonds, 5.20%, 01/30/20 | 250,000 | 286,625 | ||||||
Perusahaan Penerbit SBSN (Indonesia), Sr. Unsec. Notes, 4.00%, 11/21/18(b) | 200,000 | 204,700 | ||||||
Peruvian Government International Bond (Peru), Sr. Unsec. Global Bonds, 8.75%, 11/21/33(b) | 136,000 | 209,916 | ||||||
| Philippine Government International Bond (Philippines), Sr. Unsec. Global Bonds, | ||||||||
| 6.38%, 10/23/34 | 300,000 | 376,875 | ||||||
| 5.00%, 01/13/37 | 300,000 | 318,000 | ||||||
| Poland Government International Bond (Poland), Sr. Unsec. Global Notes, | ||||||||
| 5.13%, 04/21/21 | 220,000 | 236,500 | ||||||
| 5.00%, 03/23/22 | 210,000 | 223,923 | ||||||
Provincia de Buenos Aires (Argentina), Sr. Unsec. Notes, 11.75%, 10/05/15(b) | 300,000 | 283,593 | ||||||
Republic of Serbia, Sr. Unsec. Bonds, 6.75%, 11/01/24(b) | 65,000 | 62,725 | ||||||
Romanian Government International Bond (Romania), Sr. Unsec. Notes, 6.75%, 02/07/22(b) | 110,000 | 113,300 | ||||||
Russian Foreign Bond (Russia), Sr. Unsec. Euro Bonds, 5.00%, 04/29/20(b) | 600,000 | 643,500 | ||||||
Russian Foreign Bond–Eurobond (Russia), Sr. Unsec. Notes, 3.63%, 04/29/15(b) | 1,700,000 | 1,772,250 | ||||||
Senegal Government International Bond (Supranational), Sr. Unsec. Notes, 8.75%, 05/13/21(b) | 200,000 | 201,500 | ||||||
| South Africa Government (South Africa), Sr. Unsec. Global Bonds, 4.67%, 01/17/24 | 1,270,000 | 1,330,325 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 Invesco Core Plus Bond Fund
| Principal | ||||||||
| Amount | Value | |||||||
Sovereign Debt–(continued) | ||||||||
| South Africa Government International Bond (South Africa), Sr. Unsec. Global Notes, 5.88%, 05/30/22 | $ | 100,000 | $ | 117,375 | ||||
Sri Lanka Government International Bond (Sri Lanka), Sr. Unsec. Notes, 6.25%, 10/04/20(b) | 150,000 | 147,000 | ||||||
–REGS, Notes, 7.40%, 01/22/15(b) | 150,000 | 157,500 | ||||||
Turkey Government International Bond (Turkey), Sr. Unsec. Global Bonds, 5.63%, 03/30/21 | 150,000 | 155,813 | ||||||
Sr. Unsec. Global Notes, 6.75%, 05/30/40 | 100,000 | 107,750 | ||||||
Unsec. Global Notes, 5.13%, 03/25/22 | 200,000 | 198,750 | ||||||
| Ukraine Government International Bond (Ukraine), Sr. Unsec. Notes, | ||||||||
6.75%, 11/14/17(b) | 150,000 | 136,473 | ||||||
7.95%, 02/23/21(b) | 200,000 | 183,000 | ||||||
| Uruguay Government International Bond (Uruguay), Unsec. Global Notes, 8.00%, 11/18/22 | 250,000 | 342,875 | ||||||
| Venezuela Government International Bond (Venezuela), Sr. Unsec. Global Bonds., 9.25%, 09/15/27 | 600,000 | 536,694 | ||||||
Vietnam Government International Bond, Sr. Unsec. Bonds, 6.75%, 01/29/20(b) | 100,000 | 108,582 | ||||||
Wakala Global Sukuk BHD (Malaysia), Bonds, 2.99%, 07/06/16(b) | 250,000 | 254,896 | ||||||
| 13,051,200 | ||||||||
| Specialized Finance–0.67% | ||||||||
| National Rural Utilities Cooperative Finance Corp., | ||||||||
Sr. Sec. Collateral Trust Global Bonds, 10.38%, 11/01/18 | 2,130,000 | 3,123,400 | ||||||
Sr. Sec. Collateral Trust Notes, 2.63%, 09/16/12 | 25,000 | 25,281 | ||||||
Waha Aerospace B.V. (Netherlands), Sr. Unsec. Gtd. Unsub. Bonds 3.93%, 07/28/20(b) | 85,000 | 87,406 | ||||||
| 3,236,087 | ||||||||
| Specialized REIT’s–1.33% | ||||||||
| American Tower Corp., | ||||||||
Sr. Unsec. Global Notes, 4.63%, 04/01/15 | 430,000 | 458,545 | ||||||
Sr. Unsec. Notes, 4.50%, 01/15/18 | 100,000 | 103,536 | ||||||
| Entertainment Properties Trust, Sr. Unsec. Gtd. Global Notes, 7.75%, 07/15/20 | 3,880,000 | 4,170,400 | ||||||
| Host Hotels & Resorts L.P., Sr. Gtd. Global Notes, 6.00%, 11/01/20 | 70,000 | 76,475 | ||||||
| MPT Operating Partnership L.P./MPT Finance Corp., Sr. Unsec. Gtd. Global Notes, 6.88%, 05/01/21 | 10,000 | 10,700 | ||||||
| Omega Healthcare Investors, Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 10/15/22 6.75%, 10/15/22 | 20,000 | 21,575 | ||||||
| Senior Housing Properties Trust, Sr. Unsec. Notes, 4.30%, 01/15/16 4.30%, 01/15/16 | 1,495,000 | 1,500,980 | ||||||
| Ventas Realty L.P./Ventas Capital Corp., Sr. Unsec. Gtd. Notes, 4.75%, 06/01/21 | 50,000 | 51,588 | ||||||
| 6,393,799 | ||||||||
| Specialty Chemicals–0.05% | ||||||||
| Ferro Corp., Sr. Unsec. Notes, 7.88%, 08/15/18 | 90,000 | 94,725 | ||||||
| NewMarket Corp., Sr. Unsec. Gtd. Global Notes, 7.13%, 12/15/16 | 100,000 | 103,187 | ||||||
| PolyOne Corp., Sr. Unsec. Notes, 7.38%, 09/15/20 | 42,000 | 45,360 | ||||||
| 243,272 | ||||||||
| Specialty Stores–0.02% | ||||||||
| Michaels Stores Inc., Sr. Unsec. Gtd. Global Notes, 7.75%, 11/01/18 | 80,000 | 85,300 | ||||||
| Steel–1.41% | ||||||||
| ArcelorMittal (Luxembourg), Sr. Unsec. Global Notes, | ||||||||
| 3.75%, 08/05/15 | 30,000 | 30,603 | ||||||
| 4.50%, 02/25/17 | 2,125,000 | 2,141,258 | ||||||
| 6.13%, 06/01/18 | 845,000 | 890,025 | ||||||
| 5.50%, 03/01/21 | 280,000 | 277,588 | ||||||
| 6.25%, 02/25/22 | 20,000 | 20,707 | ||||||
| 7.00%, 10/15/39 | 1,225,000 | 1,204,247 | ||||||
| 6.75%, 03/01/41 | 280,000 | 273,335 | ||||||
| FMG Resources Pty. Ltd. (Australia), Sr. Unsec. Gtd. Notes, | ||||||||
7.00%, 11/01/15(b) | 40,000 | 42,600 | ||||||
6.38%, 02/01/16(b) | 75,000 | 78,004 | ||||||
| United States Steel Corp., Sr. Unsec. Notes, 7.00%, 02/01/18 | 50,000 | 52,125 | ||||||
| Vale Overseas Ltd. (Brazil), Sr. Unsec. Gtd. Global Notes, | ||||||||
| 4.63%, 09/15/20 | 730,000 | 785,281 | ||||||
| 4.38%, 01/11/22 | 170,000 | 178,086 | ||||||
| 6.88%, 11/10/39 | 655,000 | 811,932 | ||||||
| 6,785,791 | ||||||||
| Systems Software–0.01% | ||||||||
Allen Systems Group Inc., Sec. Gtd. Notes, 10.50%, 11/15/16 (Acquired 12/20/10-01/06/11; Cost: $40,963)(b) | 40,000 | 35,600 | ||||||
| Textiles–0.02% | ||||||||
| Levi Strauss & Co., Sr. Unsec. Global Notes, 7.63%, 05/15/20 | 100,000 | 106,500 | ||||||
| Tires & Rubber–0.02% | ||||||||
| Cooper Tire & Rubber Co., Sr. Unsec. Notes, 8.00%, 12/15/19 | 45,000 | 48,431 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 Invesco Core Plus Bond Fund
| Principal | ||||||||
| Amount | Value | |||||||
Tires & Rubber–(continued) | ||||||||
| Goodyear Tire & Rubber Co. (The), Sr. Unsec. Gtd. Notes, | ||||||||
| 8.25%, 08/15/20 | $ | 5,000 | $ | 5,475 | ||||
| 7.00%, 05/15/22 | 65,000 | 66,381 | ||||||
| 120,287 | ||||||||
| Tobacco–0.42% | ||||||||
| Altria Group, Inc., Sr. Unsec. Gtd. Global Notes, 4.75%, 05/05/21 | 1,845,000 | 2,033,267 | ||||||
| Trading Companies & Distributors–0.05% | ||||||||
| Aircastle Ltd., Sr. Notes, 9.75%, 08/01/18 | 15,000 | 16,950 | ||||||
| H&E Equipment Services Inc., Sr. Unsec. Gtd. Global Notes, 8.38%, 07/15/16 | 105,000 | 108,937 | ||||||
| Interline Brands, Inc., Sr. Unsec. Gtd. Global Notes, 7.00%, 11/15/18 | 37,000 | 39,220 | ||||||
| RSC Equipment Rental Inc./RSC Holdings III LLC, Sr. Unsec. Global Notes, 8.25%, 02/01/21 | 30,000 | 31,800 | ||||||
UR Financing Escrow Corp., Sec. Gtd. Notes, 5.75%, 07/15/18(b) | 5,000 | 5,138 | ||||||
Sr. Unsec. Notes, 7.63%, 04/15/22(b) | 20,000 | 20,650 | ||||||
| 222,695 | ||||||||
| Trucking–0.25% | ||||||||
Avis Budget Car Rental LLC/Avis Budget Finance Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 01/15/19 | 105,000 | 110,381 | ||||||
| 9.75%, 03/15/20 | 15,000 | 16,425 | ||||||
| Hertz Corp. (The), Sr. Unsec. Gtd. Global Notes, | ||||||||
| 7.50%, 10/15/18 | 10,000 | 10,825 | ||||||
| 6.75%, 04/15/19 | 100,000 | 105,250 | ||||||
| 7.38%, 01/15/21 | 25,000 | 27,250 | ||||||
Sr. Unsec. Gtd. Notes, 6.75%, 04/15/19(b) | 20,000 | 20,975 | ||||||
| Ryder System, Inc., Sr. Unsec. Medium-Term Notes, 3.15%, 03/02/15 | 860,000 | 896,993 | ||||||
| 1,188,099 | ||||||||
| Wireless Telecommunication Services–0.95% | ||||||||
| America Movil S.A.B de C.V. (Mexico), Sr. Unsec. Gtd. Global Notes, 6.13%, 03/30/40 | 1,115,000 | 1,356,628 | ||||||
| Clearwire Communications LLC/Clearwire Finance, Inc., Sr. Sec. Gtd. Notes, | ||||||||
12.00%, 12/01/15(b) | 100,000 | 98,250 | ||||||
14.75%, 12/01/16(b) | 10,000 | 10,525 | ||||||
| Cricket Communications, Inc., | ||||||||
| Sr. Unsec. Gtd. Global Notes, 7.75%, 10/15/20 | 167,000 | 167,417 | ||||||
| Crown Castle Towers LLC, Sr. Sec. Gtd. Notes, | ||||||||
3.21%, 08/15/15(b) | 25,000 | 25,813 | ||||||
4.88%, 08/15/20(b) | 1,835,000 | 1,935,925 | ||||||
Digicel Group Ltd. (Bermuda), Sr. Unsec. Notes, 8.88%, 01/15/15(b) | 200,000 | 204,750 | ||||||
| Intelsat Jackson Holdings S.A. (Luxembourg), Sr. Unsec. Gtd. Global Notes, 7.50%, 04/01/21 | 115,000 | 122,187 | ||||||
| MetroPCS Wireless Inc., Sr. Unsec. Gtd. Notes, | ||||||||
| 7.88%, 09/01/18 | 20,000 | 21,438 | ||||||
| 6.63%, 11/15/20 | 80,000 | 82,600 | ||||||
| Sprint Capital Corp., Sr. Unsec. Gtd. Global Notes, 6.90%, 05/01/19 | 82,000 | 72,570 | ||||||
| Sprint Nextel Corp., Sr. Unsec. Gtd. Notes, | ||||||||
9.00%, 11/15/18(b) | 40,000 | 44,800 | ||||||
7.00%, 03/01/20(b) | 20,000 | 20,425 | ||||||
Sr. Unsec. Notes, 11.50%, 11/15/21(b) | 15,000 | 16,444 | ||||||
VimpelCom Holdings B.V. (Netherlands), Sr. Unsec. Gtd. Notes, 7.50%, 03/01/22(b) | 200,000 | 196,300 | ||||||
Wind Acquisition Finance S.A. (Luxembourg), Sr. Sec. Gtd. Notes, 11.75%, 07/15/17(b) | 200,000 | 206,500 | ||||||
| 4,582,572 | ||||||||
| Total U.S. Dollar Denominated Bonds and Notes (Cost $229,659,690) | 243,340,788 | |||||||
| U.S. Government Sponsored Mortgage-Backed Securities–34.56% | ||||||||
| Collateralized Mortgage Obligations–0.71% | ||||||||
| Fannie Mae REMICS, | ||||||||
Series 2003-41, Class 1B, Pass Through Ctfs., 7.00%, 05/25/33 | 37,699 | 7,757 | ||||||
Series 2003-64, Class JI, Pass Through Ctfs., 6.00%, 07/25/33 | 68,854 | 11,802 | ||||||
Series 2005-35, Class AC, Pass Through Ctfs., 4.00%, 08/25/18 | 171,803 | 172,992 | ||||||
Series 2010-39, Class FE, Floating Rate Pass Through Ctfs., 1.01%, 06/25/37(d) | 1,960,308 | 1,983,250 | ||||||
FDIC Structured Sale Gtd. Notes,- Series 2010-S1, Class 1A, Floating Rate Pass Through Ctfs., 0.82%, 02/25/48 (Acquired 03/05/10; Cost $1,130,696)(b)(d) | 1,130,696 | 1,131,903 | ||||||
| Freddie Mac REMICS, Series 2575, Class KA Pass Through Ctfs., 5.00%, 11/15/17 | 124,842 | 128,548 | ||||||
| 3,436,252 | ||||||||
| Federal Home Loan Mortgage Corp. (FHLMC)–20.74% | ||||||||
| Pass Through Ctfs., | ||||||||
6.00%, 08/01/14 to 02/01/34 | 924,550 | 1,023,654 | ||||||
5.50%, 05/01/16 to 07/01/40 | 10,691,167 | 11,642,689 | ||||||
6.50%, 05/01/16 to 09/01/36 | 2,644,780 | 3,006,383 | ||||||
7.00%, 06/01/16 to 10/01/34 | 3,397,877 | 4,001,733 | ||||||
7.50%, 04/01/17 to 05/01/35 | 1,492,303 | 1,800,451 | ||||||
| 8.50%, 08/01/31 | 139,487 | 172,518 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
17 Invesco Core Plus Bond Fund
| Principal | ||||||||
| Amount | Value | |||||||
Federal Home Loan Mortgage Corp. (FHLMC)–(continued) | ||||||||
| 8.00%, 08/01/32 | $ | 114,877 | $ | 140,328 | ||||
5.00%, 07/01/34 to 06/01/40 | 15,080,790 | 16,430,579 | ||||||
| Pass Through Ctfs., ARM, | ||||||||
2.84%, 12/01/36(d) | 475,799 | 504,446 | ||||||
4.39%, 02/01/37(d) | 144,132 | 152,526 | ||||||
5.53%, 05/01/37(d) | 630,705 | 671,771 | ||||||
| Pass Through Ctfs., TBA | ||||||||
3.50%, 08/01/26 to 03/01/42 | 17,823,535 | 18,485,237 | ||||||
4.50%, 03/01/42(h) | 18,205,000 | 19,339,967 | ||||||
4.00%, 03/01/42(h) | 19,500,000 | 20,459,765 | ||||||
5.50%, 03/01/42(h) | 2,000,000 | 2,169,688 | ||||||
| 100,001,735 | ||||||||
| Federal National Mortgage Association (FNMA)–11.90% | ||||||||
| Pass Through Ctfs., | ||||||||
7.50%, 11/01/15 to 08/01/37 | 1,809,479 | 2,166,518 | ||||||
7.00%, 12/01/15 to 02/01/34 | 1,685,299 | 1,963,026 | ||||||
6.50%, 05/01/16 to 01/01/37 | 766,351 | 875,411 | ||||||
6.00%, 05/01/17 to 10/01/39 | 497,726 | 548,095 | ||||||
5.00%, 03/01/18 to 12/01/39 | 4,814,496 | 5,248,053 | ||||||
5.50%, 11/01/18 to 06/01/40 | 273,268 | 298,746 | ||||||
8.00%, 08/01/21 to 04/01/33 | 271,837 | 328,472 | ||||||
| 9.50%, 04/01/30 | 71,187 | 85,619 | ||||||
| 8.50%, 10/01/32 | 222,163 | 274,163 | ||||||
| Pass Through Ctfs., ARM, | ||||||||
2.39%, 05/01/35(d) | 1,028,981 | 1,084,708 | ||||||
2.61%, 01/01/37(d) | 451,931 | 478,289 | ||||||
4.56%, 03/01/38(d) | 243,254 | 257,566 | ||||||
| Pass Through Ctfs., TBA, | ||||||||
4.00%, 03/01/27 to 03/01/42(h) | 18,285,000 | 19,289,752 | ||||||
4.50%, 03/01/27(h) | 5,250,000 | 5,618,731 | ||||||
5.00%, 03/01/27 to 03/01/42(h) | 6,445,000 | 6,949,282 | ||||||
3.50%, 03/01/42(h) | 3,000,000 | 3,101,250 | ||||||
6.00%, 03/01/42(h) | 8,000,000 | 8,801,252 | ||||||
| 57,368,933 | ||||||||
| Government National Mortgage Association (GNMA)–1.21% | ||||||||
| Pass Through Ctfs., | ||||||||
7.50%, 06/15/23 to 05/15/32 | 72,623 | 84,014 | ||||||
9.00%, 09/15/24 to 10/15/24 | 25,855 | 26,183 | ||||||
| 8.50%, 02/15/25 | 8,057 | 8,213 | ||||||
8.00%, 08/15/25 to 09/15/26 | 117,089 | 134,780 | ||||||
| 6.56%, 01/15/27 | 179,493 | 207,580 | ||||||
7.00%, 04/15/28 to 09/15/32 | 619,754 | 737,354 | ||||||
6.00%, 11/15/28 to 02/15/33 | 248,545 | 280,848 | ||||||
6.50%, 01/15/29 to 09/15/34 | 381,872 | 445,576 | ||||||
| 5.50%, 06/15/35 | 351,064 | 391,790 | ||||||
5.00%, 07/15/35 to 08/15/35 | 187,550 | 207,593 | ||||||
| Pass Through Ctfs., ARM, | ||||||||
2.38%, 01/20/25 to 05/20/25(d) | 112,215 | 116,188 | ||||||
3.00%, 06/20/25(d) | 12,141 | 12,673 | ||||||
Pass Through Ctfs., TBA, 4.50%, 03/01/42(h) | 2,925,000 | 3,188,250 | ||||||
| 5,841,042 | ||||||||
| Total U.S. Government Sponsored Mortgage-Backed Securities (Cost $163,689,952) | 166,647,962 | |||||||
| Asset-Backed Securities–14.73% | ||||||||
ARI Fleet Lease Trust–Series 2010-A, Class A, Floating Rate Pass Through Ctfs., 1.70%, 08/15/18(b)(d) | 114,858 | 114,910 | ||||||
Banc of America Merrill Lynch Commercial Mortgage Inc., Series 2003-1, Class A2, Pass Through Ctfs., 4.65%, 09/11/36 | 39,663 | 40,581 | ||||||
Series 2005-6, Class A3, Variable Rate Pass Through Ctfs., 5.19%, 09/10/47(d) | 58,243 | 58,764 | ||||||
Banc of America Mortgage Securities Inc.–Series 2005-12, Class A2, Floating Rate Pass Through Ctfs., 1.14%, 01/25/36(d) | 1,269,758 | 996,773 | ||||||
Bear Stearns Adjustable Rate Mortgage Trust–Series 2003-6, Class 1A3, Floating Rate Pass Through Ctfs., 2.49%, 08/25/33(d) | 1,001,354 | 994,318 | ||||||
Bear Stearns Commercial Mortgage Securities, Series 2004-PWR6, Class A6, Pass Through Ctfs., 4.83%, 11/11/41 | 1,405,000 | 1,527,576 | ||||||
Series 2005-PWR8, Class A4, Pass Through Ctfs., 4.67%, 06/11/41 | 2,675,000 | 2,924,214 | ||||||
Series 2005-T18, Class A4, Variable Rate Pass Through Ctfs., 4.93%, 02/13/42(d) | 45,000 | 49,163 | ||||||
Series 2006-PW11, Class A4, Variable Rate Pass Through Ctfs., 5.46%, 03/11/39(d) | 2,948,000 | 3,350,359 | ||||||
Series 2006-PW11, Class AAB, Variable Rate Pass Through Ctfs., 5.46%, 03/11/39(d) | 31,760 | 33,633 | ||||||
Series 2006-T24, Class A3, Pass Through Ctfs., 5.53%, 10/12/41 | 834,124 | 869,005 | ||||||
Series 2006-T24, Class A4, Pass Through Ctfs., 5.54%, 10/12/41 | 3,040,000 | 3,473,890 | ||||||
Chase Issuance Trust–Series 2007-A17, Class A, Pass Through Ctfs., 5.12%, 10/15/14 | 2,560,000 | 2,636,545 | ||||||
Citibank Credit Card Issuance Trust–Series 2009-A5, Class A5, Pass Through Ctfs., 2.25%, 12/23/14 | 3,050,000 | 3,094,889 | ||||||
Citigroup Commercial Mortgage Trust–Series 2006-C4, Class A3, Variable Rate Pass Through Ctfs., 5.73%, 03/15/49(d) | 625,000 | 715,519 | ||||||
Citigroup Mortgage Loan Trust, Inc.–Series 2004-UST1, Class A4, Floating Rate Pass Through Ctfs., 2.36%, 08/25/34(d) | 3,030,863 | 3,012,243 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
18 Invesco Core Plus Bond Fund
| Principal | ||||||||
| Amount | Value | |||||||
Commercial Mortgage Trust–Series 2001-J2A, Class A2F, Floating Rate Pass Through Ctfs., 0.75%, 07/16/34(b)(d) | $ | 756 | $ | 756 | ||||
Countrywide Asset-Backed Ctfs., Series 2003-1, Class 3A, Floating Rate Pass Through Ctfs., 0.92%, 06/25/33(d) | 284,278 | 202,244 | ||||||
Series 2007-4, Class A1B, Pass Through Ctfs., 5.81%, 09/25/37 | 407,737 | 401,198 | ||||||
Countrywide Home Loan Mortgage Pass Through Trust–Series 2007-13, Class A10, Pass Through Ctfs., 6.00%, 08/25/37 | 1,820,000 | 1,529,715 | ||||||
Credit Suisse Mortgage Capital Ctfs., Series 2009-2R, Class 1A11, Floating Rate Pass Through Ctfs., 2.70%, 09/26/34(b)(d) | 1,349,726 | 1,280,962 | ||||||
Series 2010-6R, Class 1A1, Pass Through Ctfs., 5.50%, 02/27/37 (Acquired 03/01/10; Cost: $699,303)(b) | 678,935 | 703,547 | ||||||
DBUBS Mortgage Trust–Series 2011-LC1A, Class C, Variable Rate Pass Through Ctfs., 5.56%, 11/10/46 (Acquired 02/08/11; Cost: $2,009,461)(b)(d) | 2,000,000 | 2,081,905 | ||||||
Discover Card Master Trust–Series 2010-A1, Class A1, Floating Rate Pass Through Ctfs., 0.90%, 09/15/15(d) | 1,175,000 | 1,181,836 | ||||||
First Horizon Alternative Mortgage Securities, Series 2005-FA8, Class 2A1, Pass Through Ctfs., 5.00%, 11/25/20 | 641,683 | 619,512 | ||||||
Series 2006-FA5, Class A3, Pass Through Ctfs., 6.25%, 08/25/36 | 671,260 | 459,917 | ||||||
GE Capital Credit Card Master Note Trust–Series 2010-3, Class A, Pass Through Ctfs., 2.21%, 06/15/16 | 70,000 | 71,473 | ||||||
GS Mortgage Securities Corp. II–Series 2005-GG4, Class A4A, Pass Through Ctfs., 4.75%, 07/10/39 | 2,760,000 | 3,010,844 | ||||||
Harborview Mortgage Loan Trust–Series 2005-9, Class 2A1C, Floating Rate Pass Through Ctfs., 0.70%, 06/20/35(d) | 61,541 | 40,852 | ||||||
JP Morgan Chase Commercial Mortgage Securities Corp.–Series 2006-LDP9, Class A3, Pass Through Ctfs., 5.34%, 05/15/47 | 900,000 | 994,775 | ||||||
LB-UBS Commercial Mortgage Trust, Series 2005-C1, Class A4, Pass Through Ctfs., 4.74%, 02/15/30 | 780,000 | 845,162 | ||||||
Series 2005-C3, Class A3, Pass Through Ctfs., 4.65%, 07/15/30 | 10,571 | 10,596 | ||||||
Series 2005-C3, Class A5, Pass Through Ctfs., 4.74%, 07/15/30 | 3,000,000 | 3,274,641 | ||||||
Series 2006-C1, Class A4, Pass Through Ctfs., 5.16%, 02/15/31 | 845,000 | 946,919 | ||||||
Series 2006-C7, Class A3, Pass Through Ctfs., 5.35%, 11/15/38 | 300,000 | 340,763 | ||||||
Lehman Mortgage Trust–Series 2006-1, Class 3A5, Pass Through Ctfs., 5.50%, 02/25/36 | 878,560 | 774,661 | ||||||
Morgan Stanley Capital I, Series 2005-HQ5, Class A3, Pass Through Ctfs., 5.01%, 01/14/42 | 6,544 | 6,541 | ||||||
Series 2005-HQ7, Class A4, Variable Rate Pass Through Ctfs., 5.20%, 11/14/42(d) | 35,000 | 39,216 | ||||||
Series 2005-T19, Class A4A, Pass Through Ctfs., 4.89%, 06/12/47 | 2,638,000 | 2,924,685 | ||||||
Series 2008-T29, Class A1, Pass Through Ctfs., 6.23%, 01/11/43 | 646,131 | 659,395 | ||||||
Provident Bank Home Equity Loan Trust–Series 2000-2, Class A1, Floating Rate Pass Through Ctfs., 0.78%, 08/25/31(d) | 426,081 | 231,972 | ||||||
RBSCF Trust–Series 2010-RR3, Class MS4A, Variable Rate Pass Through Ctfs., 4.97%, 04/16/40(b)(d) | 3,600,000 | 3,833,784 | ||||||
Renaissance Home Equity Loan Trust–Series 2007-2, Class AV1, Floating Rate Pass Through Ctfs., 0.35%, 06/25/37(d) | 2,231 | 2,218 | ||||||
Santander Drive Auto Receivables Trust–Series 2011-1, Class D, Pass Through Ctfs., 4.01%, 02/15/17 | 1,545,000 | 1,554,323 | ||||||
Sequoia Mortgage Trust–Series 2012-1, Class 1A1, Floating Rate Pass Through Ctfs., 2.87%, 01/25/42(d) | 1,980,646 | 2,018,563 | ||||||
Specialty Underwriting & Residential Finance–Series 2004-BC2, Class A2, Floating Rate Pass Through Ctfs., 0.51%, 05/25/35(d) | 41,645 | 32,524 | ||||||
Structured Adjustable Rate Mortgage Loan Trust–Series 2007-3, Class 4A2, Floating Rate Pass Through Ctfs., 5.35%, 04/25/47(d) | 1,100,000 | 583,624 | ||||||
Structured Asset Investment Loan Trust–Series 2003-BC12, Class 3A, Floating Rate Pass Through Ctfs., 0.98%, 11/25/33(d) | 44,194 | 39,022 | ||||||
Suntrust Alternative Loan Trust–Series 2005-1F, Class 2A8, Pass Through Ctfs., 6.00%, 12/25/35 | 975,613 | 657,784 | ||||||
TIAA Seasoned Commercial Mortgage Trust–Series 2007-C4, Class A2, Variable Rate Pass Through Ctfs., 5.43%, 08/15/39(d) | 192,278 | 195,154 | ||||||
Wachovia Bank Commercial Mortgage Trust, Series 2005-C18, Class A4, Pass Through Ctfs., 4.94%, 04/15/42 | 3,670,000 | 4,033,396 | ||||||
Series 2005-C21, Class A4, Variable Rate Pass Through Ctfs., 5.20%, 10/15/44(d) | 1,520,000 | 1,686,943 | ||||||
Series 2005-C21, Class AJ, Variable Rate Pass Through Ctfs., 5.20%, 10/15/44(d) | 1,515,000 | 1,587,284 | ||||||
Series 2005-C21, Class AM, Variable Rate Pass Through Ctfs., 5.20%, 10/15/44(d) | 1,680,000 | 1,841,954 | ||||||
WaMu Mortgage Pass Through Ctfs., Series 2003-AR8, Class A, Floating Rate Pass Through Ctfs., 2.49%, 08/25/33(d) | 2,302,781 | 2,311,272 | ||||||
Series 2005-AR10, Class 1A3, Floating Rate Pass Through Ctfs., 2.49%, 09/25/35(d) | 525,000 | 415,513 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
19 Invesco Core Plus Bond Fund
| Principal | ||||||||
| Amount | Value | |||||||
Wells Fargo Mortgage Backed Securities Trust, Series 2004-K, Class 1A2, Floating Rate Pass Through Ctfs., 2.73%, 07/25/34(d) | $ | 1,273,952 | $ | 1,261,749 | ||||
Series 2004-Z, Class 2A1, Floating Rate Pass Through Ctfs., 2.61%, 12/25/34(d) | 2,540,261 | 2,421,893 | ||||||
| Total Asset-Backed Securities (Cost $62,919,549) | 71,003,469 | |||||||
| U.S. Treasury Securities–13.75% | ||||||||
| U.S. Treasury Bills–0.09% | ||||||||
0.10%, 11/15/12(i)(j) | 430,000 | 429,584 | ||||||
| U.S. Treasury Notes–11.52% | ||||||||
| 4.50%, 04/30/12 | 11,200,000 | 11,280,500 | ||||||
| 1.88%, 02/28/14 | 8,010,000 | 8,257,809 | ||||||
| 2.25%, 05/31/14 | 19,595,000 | 20,424,726 | ||||||
| 2.63%, 07/31/14 | 4,300,000 | 4,533,141 | ||||||
| 2.38%, 10/31/14 | 1,875,000 | 1,972,559 | ||||||
| 2.13%, 11/30/14 | 625,000 | 653,906 | ||||||
| 2.63%, 12/31/14 | 2,000,000 | 2,123,125 | ||||||
| 1.25%, 08/31/15 | 350,000 | 358,695 | ||||||
| 2.00%, 04/30/16 | 1,000,000 | 1,053,437 | ||||||
| 1.00%, 10/31/16 | 3,000,000 | 3,027,187 | ||||||
| 2.75%, 05/31/17 | 400,000 | 437,063 | ||||||
| 3.63%, 08/15/19 | 100,000 | 115,250 | ||||||
| 2.00%, 11/15/21 | 1,250,000 | 1,256,445 | ||||||
| 3.88%, 08/15/40 | 50,000 | 57,969 | ||||||
| 55,551,812 | ||||||||
| U.S. Treasury Bonds–1.94% | ||||||||
| 6.25%, 05/15/30 | 2,000,000 | 3,028,125 | ||||||
| 5.38%, 02/15/31 | 2,505,000 | 3,490,952 | ||||||
| 3.50%, 02/15/39 | 940,000 | 1,022,985 | ||||||
| 4.25%, 05/15/39 | 20,000 | 24,647 | ||||||
| 4.50%, 08/15/39 | 1,405,000 | 1,799,717 | ||||||
| 9,366,426 | ||||||||
| U.S. Treasury Inflation–Indexed Bonds–0.20% | ||||||||
0.13%, 01/15/22(k) | 897,444 | 934,744 | ||||||
| Total U.S. Treasury Securities (Cost $63,005,519) | 66,282,566 | |||||||
| U.S. Government Sponsored Agency Securities–1.02% | ||||||||
| Federal Home Loan Mortgage Corp. (FHLMC)–1.02% | ||||||||
| Federal Home Loan Mortgage Corp., | ||||||||
Sr. Unsec. Global Notes, 5.50%, 08/23/17 | 2,740,000 | 3,358,999 | ||||||
Sr. Unsec. Global Notes, 6.25%, 07/15/32 | 1,080,000 | 1,553,890 | ||||||
| Total U.S. Government Sponsored Agency Securities (Cost $4,261,654) | 4,912,889 | |||||||
| Non-U.S. Dollar Denominated Bonds & Notes–0.44%(l) | ||||||||
| Brazil–0.02% | ||||||||
Itau Unibanco Holding S.A., Sr. Unsec. Notes, 10.50%, 11/23/15(b) | BRL | 150,000 | 92,582 | |||||
| Canada–0.01% | ||||||||
Gateway Casinos & Entertainment Ltd., Sec. Gtd. Notes, 8.88%, 11/15/17(b) | CAD | 49,000 | 51,604 | |||||
| Ireland–0.05% | ||||||||
Nara Cable Funding Ltd., Sr. Sec. Notes, 8.88%, 12/01/18(b) | EUR | 100,000 | 128,214 | |||||
| RusHydro JSC via RusHydro Finance Ltd., Sr. Sec. Medium-Term Euro Loan Participation Notes, 7.88%, 10/28/15 | RUB | 2,800,000 | 94,345 | |||||
| 222,559 | ||||||||
| Italy–0.01% | ||||||||
Lottomatica S.p.A., REGS, Jr. Unsec. Sub., REGS Variable Rate Bonds, 8.25%, 03/31/66(b)(d) | EUR | 50,000 | 60,777 | |||||
| Luxembourg–0.04% | ||||||||
Cirsa Funding Luxembourg S.A., REGS, Sr. Gtd. Notes, 8.75%, 05/15/18(b) | EUR | 100,000 | 128,881 | |||||
Codere Finance Luxembourg S.A., REGS, Sr. Sec. Gtd. Notes, 8.25%, 06/15/15(b) | EUR | 50,000 | 66,605 | |||||
| 195,486 | ||||||||
| Mexico–0.07% | ||||||||
| Mexican Bonos, | ||||||||
Series M, Bonds, 8.00%, 06/11/20 | MXN | 2,000,000 | 176,207 | |||||
Series M10, Bonds, 7.75%, 12/14/17 | MXN | 350,000 | 30,384 | |||||
Series M20, Bonds, 10.00%, 12/05/24 | MXN | 1,300,000 | 132,146 | |||||
| 338,737 | ||||||||
| Netherlands–0.06% | ||||||||
Carlson Wagonlit B.V., REGS, Sr. Sec. Gtd. Floating Rate Notes, 6.88%, 05/01/15(b) | EUR | 100,000 | 127,382 | |||||
| Cemex Finance Europe BV (Netherlands), Gtd. Notes, 4.75%, 03/05/14 | EUR | 50,000 | 61,390 | |||||
Ziggo Bond Co. B.V. (Netherlands), Sr. Sec. Gtd. Notes, 8.00%, 05/15/18(b) | EUR | 75,000 | 106,152 | |||||
| 294,924 | ||||||||
| Peru–0.02% | ||||||||
Peruvian Government International Bond, Sr. Unsec. Notes, 8.60%, 08/12/17(b) | PEN | 210,000 | 93,363 | |||||
| South Korea–0.01% | ||||||||
Export-Import Bank of Korea, Sr. Unsec. Notes, 4.00%, 11/26/15(b) | PHP | 3,300,000 | 76,597 | |||||
| United Kingdom–0.09% | ||||||||
Boparan Finance PLC, REGS, Sr. Unsec. Gtd. Notes, 9.75%, 04/30/18(b) | EUR | 200,000 | 264,422 | |||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
20 Invesco Core Plus Bond Fund
| Principal | ||||||||
| Amount | Value | |||||||
United Kingdom–(continued) | ||||||||
Odeon & UCI Finco PLC, Sr. Sec. Gtd. Notes, 9.00%, 08/01/18(b) | GBP | 100,000 | $ | 158,682 | ||||
| 423,104 | ||||||||
| United States–0.06% | ||||||||
CEDC Finance Corp. International Inc., Sr. Sec. Gtd. Notes, 8.88%, 12/01/16(b) | EUR | 100,000 | 91,915 | |||||
Morgan Stanley, Sr. Unsec. Notes, 10.09%, 05/03/17(b) | BRL | 340,000 | 187,580 | |||||
| 279,495 | ||||||||
| Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $2,145,021) | 2,129,228 | |||||||
| Municipal Obligations–0.38% | ||||||||
| Georgia (State of) Municipal Electric Authority (Plant Vogtle Units 3 & 4 Project J); | ||||||||
Series 2010 A, Taxable RB, 6.64%, 04/01/57 | $ | 1,000,000 | 1,167,330 | |||||
Series 2010, Build America RB, 6.66%, 04/01/57 | 550,000 | 638,842 | ||||||
| Total Municipal Obligations (Cost $1,550,000) | 1,806,172 | |||||||
| Shares | ||||||||
| Preferred Stocks–0.02% | ||||||||
| Consumer Finance–0.01% | ||||||||
| Ally Financial, Inc., | ||||||||
Series A, 8.50% Variable Rate Pfd.(d) | 510 | 11,337 | ||||||
Series G, 7.00%(b) | 4 | 3,471 | ||||||
GMAC Capital Trust I, Series 2, 8.13% Jr. Gtd. Sub. Variable Rate Pfd.(d) | 555 | 13,032 | ||||||
| 27,840 | ||||||||
| Office REIT’s–0.00% | ||||||||
| DuPont Fabros Technology, Inc., Series B, 7.63% Pfd. | 200 | 5,090 | ||||||
| Regional Banks–0.01% | ||||||||
| Zions Bancorp., Series C, 9.50% Pfd. | 2,600 | 68,302 | ||||||
| Tires & Rubber–0.00% | ||||||||
| Goodyear Tire & Rubber Co. (The), $2.94 Conv. Pfd. | 165 | 7,702 | ||||||
| Total Preferred Stocks (Cost $110,469) | 108,934 | |||||||
| Money Market Funds–5.49% | ||||||||
Liquid Assets Portfolio–Institutional Class(m) | 13,241,353 | 13,241,353 | ||||||
Premier Portfolio–Institutional Class(m) | 13,241,352 | 13,241,352 | ||||||
| Total Money Market Funds (Cost $26,482,705) | 26,482,705 | |||||||
| TOTAL INVESTMENTS–120.86% (Cost $553,824,559) | 582,714,713 | |||||||
| OTHER ASSETS LESS LIABILITIES–(20.86%) | (100,558,442 | ) | ||||||
| NET ASSETS–100.00% | $ | 482,156,271 | ||||||
Investment Abbreviations:
| ARM | – Adjustable Rate Mortgage | |
| BRL | – Brazilian Real | |
| CAD | – Canadian Dollar | |
| Conv. | – Convertible | |
| Ctfs. | – Certificates | |
| Deb. | – Debentures | |
| Disc. | – Discounted | |
| EUR | – Euro | |
| GBP | – British Pound | |
| Gtd. | – Guaranteed | |
| Jr. | – Junior | |
| MXN | – Mexican Peso | |
| NZD | – New Zealand Dollar | |
| PEN | – Peru Nuevo Sol | |
| Pfd. | – Preferred | |
| PHP | – Philippine Peso | |
| PIK | – Payment in Kind | |
| RB | – Revenue Bonds | |
| REGS | – Regulation S | |
| REIT | – Real Estate Investment Trust | |
| REMICS | – Real Estate Mortgage Investment Conduits | |
| RUB | – Russian Rouble | |
| Sec. | – Secured | |
| Sr. | – Senior | |
| Sub. | – Subordinated | |
| TBA | – To Be Announced | |
| Unsec. | – Unsecured | |
| Unsub. | – Unsubordinated |
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) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at February 29, 2012 was 2012 was $83,970,413, which represented 17.42% of the Trust’s Net Assets. | |
| (c) | Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The aggregate value of these securities at February 29, 2012 was $112,300, which represented 0.02% of the Trust’s Net Assets | |
| (d) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 29, 2012. | |
| (e) | Perpetual bond with no specified maturity date. | |
| (f) | Interest payments have been suspended under European Union agreement for 24 months beginning April 30, 2010. | |
| (g) | Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put. | |
| (h) | Security purchased on a forward commitment basis. This security is subject to dollar roll transactions. See Note 1J. | |
| (i) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. | |
| (j) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1M and Note 4. | |
| (k) | Principal amount of security and interest payments are adjusted for inflation. | |
| (l) | Foreign denominated security. Principal amount is denominated in currency indicated. | |
| (m) | The money market fund and the Fund are affiliated by having the same investment adviser. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
21 Invesco Core Plus Bond Fund
By security type, based on Net Assets
as of February 29, 2012
| U.S. Dollar Denominated Bonds and Notes | 50.5 | % | ||
| U.S. Government Sponsored Mortgage-Backed Securities | 34.6 | |||
| Asset-Backed Securities | 14.7 | |||
| U.S. Treasury Securities | 13.8 | |||
| U.S. Government Sponsored Agency Securities | 1.0 | |||
Non-U.S. Dollar Denominated Bonds & Notes | 0.4 | |||
| Municipal Obligations | 0.4 | |||
| Money Market Funds Plus Other Assets Less Liabilities | (15.4 | ) | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
22 Invesco Core Plus Bond Fund
Statement of Assets and Liabilities
February 29, 2012
(Unaudited)
| Assets: | ||||
| Investments, at value (Cost $527,341,854) | $ | 556,232,008 | ||
| Investments in affiliated money market funds, at value and cost | 26,482,705 | |||
| Total investments, at value (Cost $553,824,559) | 582,714,713 | |||
| Cash | 7,245 | |||
| Foreign currencies, at value (Cost $251,070) | 251,338 | |||
| Receivable for: | ||||
| Investments sold | 13,280,971 | |||
| Variation margin | 68,312 | |||
| Fund shares sold | 1,419,026 | |||
| Dividends and interest | 4,597,942 | |||
| Fund expenses absorbed | 21,388 | |||
| Principal paydowns | 12,012 | |||
| Unrealized appreciation on swap agreements | 16,588 | |||
| Premiums paid on swap agreements | 62,718 | |||
| Investment for trustee deferred compensation and retirement plans | 36,748 | |||
| Other assets | 29,244 | |||
| Total assets | 602,518,245 | |||
| Liabilities: | ||||
| Payable for: | ||||
| Investments purchased | 119,327,364 | |||
| Fund shares reacquired | 437,454 | |||
| Dividends | 148,859 | |||
| Foreign currency contracts closed | 1,260 | |||
| Foreign currency contracts outstanding | 9,731 | |||
| Accrued fees to affiliates | 216,949 | |||
| Accrued other operating expenses | 141,785 | |||
| Trustee deferred compensation and retirement plans | 78,572 | |||
| Total liabilities | 120,361,974 | |||
| Net assets applicable to shares outstanding | $ | 482,156,271 | ||
| Net assets consist of: | ||||
| Shares of beneficial interest | $ | 547,159,744 | ||
| Undistributed net investment income | (1,227,281 | ) | ||
| Undistributed net realized gain (loss) | (92,756,339 | ) | ||
| Unrealized appreciation | 28,980,147 | |||
| $ | 482,156,271 | |||
| Net Assets: | ||||
| Class A | $ | 255,007,375 | ||
| Class B | $ | 24,006,669 | ||
| Class C | $ | 33,294,240 | ||
| Class R | $ | 2,667,717 | ||
| Class Y | $ | 5,490,936 | ||
| Institutional Class | $ | 161,689,334 | ||
| Shares outstanding, $0.01 par value per share, with an unlimited number of shares authorized: | ||||
| Class A | 23,700,870 | |||
| Class B | 2,231,714 | |||
| Class C | 3,095,353 | |||
| Class R | 248,021 | |||
| Class Y | 510,182 | |||
| Institutional Class | 15,033,575 | |||
| Class A: | ||||
| Net asset value per share | $ | 10.76 | ||
| Maximum offering price per share | ||||
| (Net asset value of $10.76 divided by 95.25%) | $ | 11.30 | ||
| Class B: | ||||
| Net asset value and offering price per share | $ | 10.76 | ||
| Class C: | ||||
| Net asset value and offering price per share | $ | 10.76 | ||
| Class R: | ||||
| Net asset value and offering price per share | $ | 10.76 | ||
| Class Y: | ||||
| Net asset value and offering price per share | $ | 10.76 | ||
| Institutional Class: | ||||
| Net asset value and offering price per share | $ | 10.76 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
23 Invesco Core Plus Bond Fund
Statement of Operations
For the six months ended February 29, 2012
(Unaudited)
| Investment income: | ||||
| Interest | $ | 10,107,386 | ||
| Dividends (net of foreign withholding taxes of $258) | 4,543 | |||
| Dividends from affiliated money market funds | 13,085 | |||
| Total investment income | 10,125,014 | |||
| Expenses: | ||||
| Advisory fees | 1,034,677 | |||
| Administrative services fees | 77,747 | |||
| Custodian fees | 18,237 | |||
| Distribution fees: | ||||
| Class A | 292,687 | |||
| Class B | 120,616 | |||
| Class C | 165,973 | |||
| Class R | 6,000 | |||
| Transfer agent fees — A, B, C, R and Y | 291,748 | |||
| Transfer agent fees — Institutional | 354 | |||
| Trustees’ and officers’ fees and benefits | 22,072 | |||
| Other | 92,148 | |||
| Total expenses | 2,122,259 | |||
| Less: Fees waived, expenses reimbursed and expense offset arrangement(s) | (403,408 | ) | ||
| Net expenses | 1,718,851 | |||
| Net investment income | 8,406,163 | |||
| Realized and unrealized gain (loss) from: | ||||
| Net realized gain (loss) from: | ||||
| Investment securities | 4,331,347 | |||
| Foreign currencies | (7,778 | ) | ||
| Foreign currency contracts | 42,746 | |||
| Futures contracts | 125,645 | |||
| Swap agreements | (74,273 | ) | ||
| 4,417,687 | ||||
| Change in net unrealized appreciation (depreciation) of: | ||||
| Investment securities | 5,019,957 | |||
| Foreign currencies | 5,332 | |||
| Foreign currency contracts | (1,187 | ) | ||
| Futures contracts | 5,757 | |||
| Swap agreements | (70,818 | ) | ||
| 4,959,041 | ||||
| Net realized and unrealized gain | 9,376,728 | |||
| Net increase in net assets resulting from operations | $ | 17,782,891 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
24 Invesco Core Plus Bond Fund
Statement of Changes in Net Assets
For the six months ended February 29, 2012 and the year ended August 31, 2011
(Unaudited)
| February 29, | August 31, | |||||||
| 2012 | 2011 | |||||||
| Operations: | ||||||||
| Net investment income | $ | 8,406,163 | $ | 3,753,920 | ||||
| Net realized gain | 4,417,687 | 1,916,741 | ||||||
| Change in net unrealized appreciation (depreciation) | 4,959,041 | (2,194,422 | ) | |||||
| Net increase in net assets resulting from operations | 17,782,891 | 3,476,239 | ||||||
| Distributions to shareholders from net investment income: | ||||||||
| Class A | (5,041,625 | ) | (2,136,426 | ) | ||||
| Class B | (429,293 | ) | (189,459 | ) | ||||
| Class C | (590,050 | ) | (236,568 | ) | ||||
| Class R | (48,743 | ) | (20,998 | ) | ||||
| Class Y | (120,024 | ) | (23,561 | ) | ||||
| Institutional Class | (3,666,428 | ) | (1,613,593 | ) | ||||
| Total distributions from net investment income | (9,896,163 | ) | (4,220,605 | ) | ||||
| Distributions to shareholders from net realized gains: | ||||||||
| Class A | (418,835 | ) | (112,008 | ) | ||||
| Class B | (43,158 | ) | (14,844 | ) | ||||
| Class C | (58,620 | ) | (13,430 | ) | ||||
| Class R | (4,312 | ) | (2,158 | ) | ||||
| Class Y | (9,454 | ) | (1,898 | ) | ||||
| Institutional Class | (289,097 | ) | (1,619 | ) | ||||
| Total distributions from net realized gains | (823,476 | ) | (145,957 | ) | ||||
| Share transactions–net: | ||||||||
| Class A | 25,833,009 | 218,551,835 | ||||||
| Class B | (744,465 | ) | 23,586,221 | |||||
| Class C | (688,302 | ) | 32,838,422 | |||||
| Class R | 329,435 | 2,155,216 | ||||||
| Class Y | 177,371 | 5,079,304 | ||||||
| Institutional Class | (7,298,819 | ) | 166,735,618 | |||||
| Net increase in net assets resulting from share transactions | 17,608,229 | 448,946,616 | ||||||
| Net increase in net assets | 24,671,481 | 448,056,293 | ||||||
| Net assets: | ||||||||
| Beginning of period | 457,484,790 | 9,428,497 | ||||||
| End of period (includes undistributed net investment income of $(1,227,281) and $262,719, respectively) | $ | 482,156,271 | $ | 457,484,790 | ||||
Notes to Financial Statements
February 29, 2012
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco Core Plus Bond Fund (the “Fund”), is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (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 twelve 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.
25 Invesco Core Plus Bond Fund
The Fund’s investment objective is total return, comprised of current income and capital appreciation.
The Fund currently consists of six different classes of shares: Class A, Class B, Class C, Class R, Class Y and Institutional Class. 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 and Institutional Class 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. 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. 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 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. | |
| Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. | ||
| A security listed or traded on an exchange (except convertible bonds) 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 ask 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 ask prices. For purposes of determining net asset value 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. | ||
| Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance. | ||
| Foreign securities (including foreign exchange contracts) 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 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 trade is not the current value as of the close of the NYSE. Foreign securities 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 are 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/ask 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. | ||
| 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. | ||
| B. | 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 is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes. | |
| 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 |
26 Invesco Core Plus Bond Fund
| 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 Statement of Changes in Net Assets, or the net investment income per share and 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 realized and unrealized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class. | ||
| C. | 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 income are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. | |
| E. | Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of 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 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. | ||
| F. | 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 the Institutional Class are charged to such 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. | |
| G. | 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. | |
| H. | 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 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. | |
| I. | Other Risks — The Funds may invest in obligations issued by agencies and instrumentalities of the U.S. Government that may vary in the level of support they receive from the government. The government may choose not to provide financial support to government sponsored agencies or instrumentalities if it is not legally obligated to do so. In this case, if the issuer defaulted, the underlying fund holding securities of such issuer might not be able to recover its investment from the U.S. Government. Many securities purchased by the Fund are not guaranteed by the U.S. Government. | |
| J. | Dollar Rolls and Forward Commitment Transactions — The Fund may enter into dollar roll transactions to enhance the Fund’s performance. The Fund executes its dollar roll transactions in the to be announced (“TBA”) market whereby the Fund makes a forward commitment to purchase a security and, instead of accepting delivery, the position is offset by the sale of the security with a simultaneous agreement to repurchase at a future date. | |
| The Fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions increase the Fund’s portfolio turnover rate. The Fund will segregate liquid assets in an amount equal to its dollar roll commitments. Dollar roll transactions are considered borrowings under the 1940 Act. | ||
| Dollar roll transactions involve the risk that a counter-party to the transaction may fail to complete the transaction. If this occurs, the Fund may lose the opportunity to purchase or sell the security at the agreed upon price. Dollar rolls transactions also involve the risk that the value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement. | ||
| K. | 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 |
27 Invesco Core Plus Bond Fund
| (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. | ||
| 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. | ||
| L. | Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into 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. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of 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 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. | |
| M. | Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities. | |
| N. | Swap Agreements — The Fund may enter into various swap transactions, including interest rate, total return, index, currency exchange rate and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk. | |
| Interest rate, total return, index, and currency exchange rate swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index. | ||
| A CDS is an agreement between two parties (“Counterparties”) to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. | ||
| Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets. | ||
| Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and |
28 Invesco Core Plus Bond Fund
| amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. The Fund segregates liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. The Fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to cover the Fund’s exposure to the counterparty. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. | ||
| O. | Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. |
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 pays 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 $500 million | 0 | .45% | ||
| Next $500 million | 0 | .425% | ||
| Next $1.5 billion | 0 | .40% | ||
| Next $2.5 billion | 0 | .375% | ||
| Over $5 billion | 0 | .35% | ||
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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2013, 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 and Institutional Class shares to 0.75%, 1.50%, 1.50%, 1.00%, 0.50% and 0.50%, respectively, of average daily net assets. 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 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 the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2013.
Further, the Adviser has contractually agreed, through at least June 30, 2012, 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 six months ended February 29, 2012, the Adviser waived advisory fees of $111,306 and reimbursed Fund expenses of $291,531.
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 six months ended February 29, 2012, 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 are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 29, 2012, 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 Y and Institutional Class 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 and Class R 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 and 0.50% of the average daily net assets of Class R shares. 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 six months ended February 29, 2012, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees.
29 Invesco Core Plus Bond Fund
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 six months ended February 29, 2012, IDI advised the Fund that IDI retained $64,715 in front-end sales commissions from the sale of Class A shares and $35, $14,305 and $1,085 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.
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 February 29, 2012. 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.
During the six months ended February 29, 2012, there were no significant transfers between investment levels.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Equity Securities | $ | 26,588,168 | $ | 3,471 | $ | — | $ | 26,591,639 | ||||||||
| U.S. Treasury Securities | — | 66,282,566 | — | 66,282,566 | ||||||||||||
| U.S. Government Sponsored Securities | — | 168,144,159 | — | 168,144,159 | ||||||||||||
| Corporate Debt Securities | — | 245,470,016 | 0 | 245,470,016 | ||||||||||||
| Asset-Backed Securities | — | 74,420,161 | — | 74,420,161 | ||||||||||||
| Municipal Obligations | — | 1,806,172 | — | 1,806,172 | ||||||||||||
| $ | 26,588,168 | $ | 556,126,545 | $ | 0 | $ | 582,714,713 | |||||||||
| Foreign Currency Contracts* | — | (9,731 | ) | — | (9,731 | ) | ||||||||||
| Futures* | 80,377 | — | — | 80,377 | ||||||||||||
| Swap Agreements* | — | 16,588 | — | 16,588 | ||||||||||||
| Total Investments | $ | 26,668,545 | $ | 556,133,402 | $ | 0 | $ | 582,801,947 | ||||||||
| * | Unrealized appreciation (depreciation). |
NOTE 4—Derivative Investments
Value of Derivative Instruments at Period-End
The table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of February 29, 2012:
| Value | ||||||||
| Risk Exposure/Derivative Type | Assets | Liabilities | ||||||
| Credit risk | ||||||||
Swap Agreements(a) | $ | 16,588 | $ | — | ||||
| Currency risk | ||||||||
Foreign Currency Contracts(b) | — | (9,731 | ) | |||||
| Interest rate risk | ||||||||
Futures contracts(c) | 80,377 | — | ||||||
| (a) | Values are disclosed on the Statement of Assets and Liabilities under Unrealized appreciation on swap agreements. | |
| (b) | Values are disclosed on the Statement of Assets and Liabilities under Foreign currency contracts outstanding | |
| (c) | Includes cumulative appreciation of futures contracts. Only current day’s variation margin receivable is reported within the Statement of Assets and Liabilities. |
30 Invesco Core Plus Bond Fund
Effect of Derivative Instruments for the six months ended February 29, 2012
The table below summarizes the gains (losses) on derivative instruments, detailed by primary risk exposure, recognized in earnings during the period:
| Location of Gain (Loss) on Statement of Operations | ||||||||||||
| Foreign Currency | Swap | |||||||||||
| Futures* | Contracts* | Agreements* | ||||||||||
| Realized Gain (Loss) | ||||||||||||
| Credit risk | $ | — | $ | — | $ | (74,273 | ) | |||||
| Index risk | — | 42,746 | — | |||||||||
| Interest rate risk | $ | 125,645 | — | — | ||||||||
| Change in Unrealized Appreciation (Depreciation) | ||||||||||||
| Credit risk | $ | — | $ | — | $ | (70,818 | ) | |||||
| Index risk | — | (1,187 | ) | — | ||||||||
| Interest rate risk | 5,757 | — | — | |||||||||
| Total | $ | 131,402 | $ | 41,559 | $ | (145,091 | ) | |||||
| * | The average notional value outstanding of futures, foreign currency contracts and swap agreements during the period was $42,815,922, $887,830 and $9,141,667. |
| Open Foreign Currency Contracts | ||||||||||||||||||||||
| Unrealized | ||||||||||||||||||||||
| Settlement | Contract to | Notional | Appreciation | |||||||||||||||||||
| Date | Counterparty | Deliver | Receive | Value | (Depreciation) | |||||||||||||||||
| 05/09/12 | RBC Capital Markets | EUR | 682,000 | USD | 901,195 | $ | 908,761 | $ | (7,566 | ) | ||||||||||||
| 05/17/12 | Morgan Stanley | GBP | 95,000 | USD | 148,866 | 151,031 | (2,165 | ) | ||||||||||||||
| $ | (9,731 | ) | ||||||||||||||||||||
| Closed Foreign Currency Contracts | ||||||||||||||||||||||
| Closed | Contract to | Notional | Realized | |||||||||||||||||||
| Date | Counterparty | Deliver | Receive | Value | Gain (Loss) | |||||||||||||||||
| 02/28/12 | RBC Capital Markets | EUR | 53,000 | USD | 70,034 | $ | 71,295 | $ | (1,260 | ) | ||||||||||||
| $ | (10,991 | ) | ||||||||||||||||||||
| EUR | – Euro | |
| GBP | – British Pound Sterling | |
| USD | – U.S. Dollar |
| Open Futures Contracts | ||||||||||||||||
| Unrealized | ||||||||||||||||
| Number of | Expiration | Notional | Appreciation | |||||||||||||
| Long Contracts | Contracts | Month | Value | (Depreciation) | ||||||||||||
| U.S. Ultra Bond | 34 | June-2012 | $ | 5,346,500 | $ | (33,009 | ) | |||||||||
| U.S. 5 Year Notes | 4 | June-2012 | 492,688 | 148 | ||||||||||||
| Subtotal | $ | 5,839,188 | $ | (32,861 | ) | |||||||||||
Short Contracts | ||||||||||||||||
| U.S. 10 Year Treasury | 214 | June-2012 | $ | (28,023,969 | ) | 113,238 | ||||||||||
| Total | $ | (22,184,781 | ) | $ | 80,377 | |||||||||||
| Open Credit Default Swap Agreements | ||||||||||||||||||||||||||||||
| Notional | ||||||||||||||||||||||||||||||
| Buy/Sell | Pay/Receive | Expiration | Implied | Amount | Upfront | Value Unrealized | ||||||||||||||||||||||||
| Counterparty | Reference Entity | Protection | Fixed Rate | Date | Credit Spread(a) | (000) | Payments | Appreciation | ||||||||||||||||||||||
| Bank of America | Royal Caribbean Cruises | Sell | 0.40 | %(b) | 03/20/17 | 4.91 | % | $ | 2,300,000 | $ | — | $ | 9,171 | |||||||||||||||||
| Morgan Stanley | Carnival Corp. | Buy | (0.40 | )(b) | 03/20/17 | 1.64 | 2,300,000 | 62,718 | 7,417 | |||||||||||||||||||||
| Total Credit Default Swap Agreements | $ | 16,588 | ||||||||||||||||||||||||||||
| (a) | Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing credit default swap contract and serve as an indicator of the current status of the payment/performance risk of the credit default swap contract. An implied credit spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally. |
31 Invesco Core Plus Bond Fund
NOTE 5—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended February 29, 2012, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $571.
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 are eligible to participate in a retirement plan that provides 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.
During the six months ended February 29, 2012, the Fund paid legal fees of $333 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.
NOTE 7—Cash Balances
The Fund may borrow for leveraging in an amount up to 5% of the Fund’s total assets (excluding the amount borrowed) at the time the borrowing is made. Such balances, if any at period end, are shown in the Statement of Assets and Liabilities under the payable caption amount due custodian. In doing so, 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. 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. A Fund may not purchase additional securities when any borrowings from banks exceeds 5% of the Fund’s total assets.
NOTE 8—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
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. The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, 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. Additionally, post-enactment capital loss carryovers 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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2011, which expires as follows:
| Capital Loss Carryforward* | ||||
| Expiration | ||||
| August 31, 2013 | $ | 25,477 | ||
| August 31, 2014 | 89,789 | |||
| August 31, 2015 | 13,284,149 | |||
| August 31, 2016 | 83,457,105 | |||
| $ | 96,856,520 | |||
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. |
32 Invesco Core Plus Bond Fund
NOTE 9—Investment Securities
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 six months ended February 29, 2012 was $723,470,121 and $701,745,461, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $17,816,958 and $20,660,981, respectively. Cost of investments 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 Investment Securities on a Tax Basis | ||||
| Aggregate unrealized appreciation of investment securities | $ | 31,339,201 | ||
| Aggregate unrealized (depreciation) of investment securities | (3,146,640 | ) | ||
| Net unrealized appreciation of investment securities | $ | 28,192,561 | ||
| Cost of investments for tax purposes is $554,522,152. | ||||
33 Invesco Core Plus Bond Fund
NOTE 10—Share Information
| Summary of Share Activity | ||||||||||||||||
| Six months ended | Year ended | |||||||||||||||
| February 29, 2012(a) | August 31, 2011 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Sold: | ||||||||||||||||
| Class A | 4,611,726 | $ | 48,752,798 | 3,555,224 | $ | 37,571,601 | ||||||||||
| Class B | 302,372 | 3,200,835 | 290,130 | 3,142,492 | ||||||||||||
| Class C | 596,966 | 6,312,204 | 830,507 | 8,927,924 | ||||||||||||
| Class R | 59,521 | 631,743 | 38,733 | 411,788 | ||||||||||||
| Class Y | 36,253 | 385,616 | 385,873 | 4,594,680 | ||||||||||||
| Institutional Class | 743,745 | 7,880,017 | 275,983 | 2,304,800 | ||||||||||||
| Issued as reinvestment of dividends: | ||||||||||||||||
| Class A | 450,543 | 4,777,563 | 173,838 | 1,840,925 | ||||||||||||
| Class B | 37,383 | 396,100 | 15,791 | 167,169 | ||||||||||||
| Class C | 52,207 | 553,079 | 19,819 | 209,824 | ||||||||||||
| Class R | 4,969 | 52,655 | 1,778 | 18,825 | ||||||||||||
| Class Y | 3,744 | 39,911 | 1,723 | 18,262 | ||||||||||||
| Institutional Class | 373,350 | 3,954,809 | 151,933 | 1,610,096 | ||||||||||||
| Automatic conversion of Class B shares to Class A shares: | ||||||||||||||||
| Class A | 205,388 | 2,230,240 | 134,643 | 1,421,518 | ||||||||||||
| Class B | (206,890 | ) | (2,230,240 | ) | (134,644 | ) | (1,421,518 | ) | ||||||||
Issued in connection with acquisitions:(b) | ||||||||||||||||
| Class A | — | — | 18,804,831 | 199,749,992 | ||||||||||||
| Class B | — | — | 2,274,003 | 24,149,182 | ||||||||||||
| Class C | — | — | 2,652,673 | 28,169,016 | ||||||||||||
| Class R | — | — | 197,182 | 2,093,222 | ||||||||||||
| Class Y | — | — | 124,611 | 806,833 | ||||||||||||
| Institutional Class | — | — | 17,608,624 | 187,448,352 | ||||||||||||
| Reacquired: | ||||||||||||||||
| Class A | (2,831,210 | ) | (29,927,592 | ) | (2,075,980 | ) | (22,032,201 | ) | ||||||||
| Class B | (203,503 | ) | (2,111,160 | ) | (231,759 | ) | (2,451,104 | ) | ||||||||
| Class C | (712,628 | ) | (7,553,585 | ) | (422,772 | ) | (4,468,342 | ) | ||||||||
| Class R | (33,574 | ) | (354,963 | ) | (34,795 | ) | (368,619 | ) | ||||||||
| Class Y | (23,416 | ) | (248,156 | ) | (31,966 | ) | (340,471 | ) | ||||||||
| Institutional Class | (1,810,434 | ) | (19,133,645 | ) | (2,320,283 | ) | (24,627,630 | ) | ||||||||
| Net increase in share activity | 1,656,512 | $ | 17,608,229 | 42,285,700 | $ | 448,946,616 | ||||||||||
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 26% 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. | |
| In addition, 30% of the outstanding shares of the fund are owned by affiliated mutual funds. Affiliated mutual funds are mutual funds that are advised by Invesco. | ||
| (b) | As of the opening of business on June 6, 2011, the Fund acquired all the net assets of Invesco Core Bond Fund and Invesco Van Kampen Core Plus Fixed Income Fund pursuant to a plan of reorganization approved by the Trustees of the Fund on November 10, 2010 and by the shareholders of Invesco Core Bond Fund and Invesco Van Kampen Core Plus Fixed Income Fund, respectively on April 14, 2011. The acquisition was accomplished by a tax-free exchange of 41,661,924 shares of the Fund for 38,907,567 shares outstanding of Invesco Core Bond Fund and 9,040,046 shares outstanding of Invesco Van Kampen Core Plus Fixed Income Fund as of the close of business on June 3, 2011. Each class of shares of Invesco Core Bond Fund and Invesco Van Kampen Core Plus Fixed Income Fund was exchanged for the like class of shares of the Fund based on the relative net asset value of Invesco Core Bond Fund and Invesco Van Kampen Core Plus Fixed Income Fund to the net asset value of the Fund on the close of business, June 3, 2011. Invesco Core Bond Fund’s net assets as of the close of business on June 3, 2011 of $354,673,244 including $21,363,557 of unrealized appreciation and Invesco Van Kampen Core Plus Fixed Income Fund’s net assets as of the close of business on June 3, 2011 of $87,743,353 including $4,538,159 of unrealized appreciation, were combined with the net assets of the Fund. The net assets of the Fund immediately before the acquisition were $17,795,783. The net assets of the Fund immediately following the reorginization were $460,212,380. |
34 Invesco Core Plus Bond Fund
NOTE 11—Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| expenses | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| to average | expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net gains | net assets | to average net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (losses) on | with fee | assets without | Ratio of net | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net asset | securities | Dividends | Distributions | waivers | fee waivers | investment | ||||||||||||||||||||||||||||||||||||||||||||||||||
| value, | Net | (both | Total from | from net | from net | Net asset | Net assets, | and/or | and/or | income | ||||||||||||||||||||||||||||||||||||||||||||||
| beginning | investment | realized and | investment | investment | realized | Total | value, end | Total | end of period | expenses | expenses | to average | Portfolio | |||||||||||||||||||||||||||||||||||||||||||
| of period | income(a) | unrealized) | operations | income | gains | distributions | of period | return(b) | (000s omitted) | absorbed | absorbed | net assets | turnover(c) | |||||||||||||||||||||||||||||||||||||||||||
| Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | $ | 10.60 | $ | 0.19 | $ | 0.22 | $ | 0.41 | $ | (0.23 | ) | $ | (0.02 | ) | $ | (0.25 | ) | $ | 10.76 | 3.89 | % | $ | 255,007 | 0.74 | %(d) | 0.99 | %(d) | 3.66 | %(d) | 136 | % | |||||||||||||||||||||||||
| Year ended 08/31/11 | 10.75 | 0.35 | (0.03 | ) | 0.32 | (0.32 | ) | (0.15 | ) | (0.47 | ) | 10.60 | 3.10 | 225,417 | 0.75 | 1.20 | 3.27 | 138 | ||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 10.29 | 0.37 | 0.65 | 1.02 | (0.49 | ) | (0.07 | ) | (0.56 | ) | 10.75 | 10.26 | 7,219 | 0.87 | 5.61 | 3.55 | 78 | |||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09(e) | 10.00 | 0.09 | 0.27 | 0.36 | (0.07 | ) | — | (0.07 | ) | 10.29 | 3.58 | 2,882 | 0.84 | (f) | 12.89 | (f) | 3.47 | (f) | 43 | |||||||||||||||||||||||||||||||||||||
| Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 10.60 | 0.15 | 0.22 | 0.37 | (0.19 | ) | (0.02 | ) | (0.21 | ) | 10.76 | 3.50 | 24,007 | 1.49 | (d) | 1.74 | (d) | 2.91 | (d) | 136 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 10.74 | 0.27 | (0.02 | ) | 0.25 | (0.24 | ) | (0.15 | ) | (0.39 | ) | 10.60 | 2.43 | 24,401 | 1.50 | 1.95 | 2.52 | 138 | ||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 10.29 | 0.29 | 0.64 | 0.93 | (0.41 | ) | (0.07 | ) | (0.48 | ) | 10.74 | 9.34 | 954 | 1.62 | 6.36 | 2.80 | 78 | |||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09(e) | 10.00 | 0.07 | 0.27 | 0.34 | (0.05 | ) | — | (0.05 | ) | 10.29 | 3.39 | 205 | 1.59 | (f) | 13.64 | (f) | 2.72 | (f) | 43 | |||||||||||||||||||||||||||||||||||||
| Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 10.60 | 0.15 | 0.22 | 0.37 | (0.19 | ) | (0.02 | ) | (0.21 | ) | 10.76 | 3.50 | 33,294 | 1.49 | (d) | 1.74 | (d) | 2.91 | (d) | 136 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 10.74 | 0.27 | (0.02 | ) | 0.25 | (0.24 | ) | (0.15 | ) | (0.39 | ) | 10.60 | 2.43 | 33,476 | 1.50 | 1.95 | 2.52 | 138 | ||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 10.29 | 0.29 | 0.64 | 0.93 | (0.41 | ) | (0.07 | ) | (0.48 | ) | 10.74 | 9.34 | 844 | 1.62 | 6.36 | 2.80 | 78 | |||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09(e) | 10.00 | 0.07 | 0.27 | 0.34 | (0.05 | ) | — | (0.05 | ) | 10.29 | 3.39 | 223 | 1.59 | (f) | 13.64 | (f) | 2.72 | (f) | 43 | |||||||||||||||||||||||||||||||||||||
| Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 10.60 | 0.18 | 0.21 | 0.39 | (0.21 | ) | (0.02 | ) | (0.23 | ) | 10.76 | 3.76 | 2,668 | 0.99 | (d) | 1.24 | (d) | 3.41 | (d) | 136 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 10.74 | 0.32 | (0.02 | ) | 0.30 | (0.29 | ) | (0.15 | ) | (0.44 | ) | 10.60 | 2.94 | 2,301 | 1.00 | 1.45 | 3.02 | 138 | ||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 10.29 | 0.34 | 0.64 | 0.98 | (0.46 | ) | (0.07 | ) | (0.53 | ) | 10.74 | 9.88 | 153 | 1.12 | 5.86 | 3.30 | 78 | |||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09(e) | 10.00 | 0.08 | 0.27 | 0.35 | (0.06 | ) | — | (0.06 | ) | 10.29 | 3.51 | 105 | 1.09 | (f) | 13.14 | (f) | 3.22 | (f) | 43 | |||||||||||||||||||||||||||||||||||||
| Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 10.60 | 0.21 | 0.21 | 0.42 | (0.24 | ) | (0.02 | ) | (0.26 | ) | 10.76 | 4.01 | 5,491 | 0.49 | (d) | 0.74 | (d) | 3.91 | (d) | 136 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 10.74 | 0.37 | (0.01 | ) | 0.36 | (0.35 | ) | (0.15 | ) | (0.50 | ) | 10.60 | 3.46 | 5,234 | 0.50 | 0.95 | 3.52 | 138 | ||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 10.29 | 0.40 | 0.63 | 1.03 | (0.51 | ) | (0.07 | ) | (0.58 | ) | 10.74 | 10.43 | 144 | 0.62 | 5.36 | 3.80 | 78 | |||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09(e) | 10.00 | 0.09 | 0.27 | 0.36 | (0.07 | ) | — | (0.07 | ) | 10.29 | 3.64 | 126 | 0.59 | (f) | 12.64 | (f) | 3.72 | (f) | 43 | |||||||||||||||||||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 10.60 | 0.21 | 0.21 | 0.42 | (0.24 | ) | (0.02 | ) | (0.26 | ) | 10.76 | 4.02 | 161,689 | 0.49 | (d) | 0.54 | (d) | 3.91 | (d) | 136 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 10.74 | 0.37 | (0.01 | ) | 0.36 | (0.35 | ) | (0.15 | ) | (0.50 | ) | 10.60 | 3.46 | 166,656 | 0.50 | 0.66 | 3.52 | 138 | ||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 10.29 | 0.40 | 0.64 | 1.04 | (0.52 | ) | (0.07 | ) | (0.59 | ) | 10.74 | 10.43 | 115 | 0.62 | 5.29 | 3.80 | 78 | |||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09(e) | 10.00 | 0.09 | 0.27 | 0.36 | (0.07 | ) | — | (0.07 | ) | 10.29 | 3.64 | 104 | 0.59 | (f) | 12.68 | (f) | 3.72 | (f) | 43 | |||||||||||||||||||||||||||||||||||||
| (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. For the period ending August 31,2011, the portfolio turnover calculation excludes the value of securities purchased of $390,261,951 and sold of $29,803,473 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco Core Bond Fund and Invesco Van Kampen Core Plus Fixed Income Fund into the Fund. | |
| (d) | Ratios are based on average daily net assets (000’s) of $235,436, $24,256, $33,377, $2,413, $5,297 and $161,604 for Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class shares, respectively. | |
| (e) | Commencement date of June 3, 2009. | |
| (f) | Annualized. |
35 Invesco Core Plus Bond 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, and redemption fees, 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 September 1, 2011 through February 29, 2012.
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, contingent deferred sales charges on redemptions, and redemption fees, 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.
| HYPOTHETICAL | ||||||||||||||||||||||||||||||
| (5% annual return before | ||||||||||||||||||||||||||||||
| ACTUAL | expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Ending | Expenses | Annualized | |||||||||||||||||||||||||
| Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||||||||||||||||||||
| Class | (09/01/11) | (02/29/12)1 | Period2 | (02/29/12) | Period2 | Ratio | ||||||||||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,038.90 | $ | 3.77 | $ | 1,021.17 | $ | 3.73 | 0.74 | % | ||||||||||||||||||
| Class B | 1,000.00 | 1,035.00 | 7.55 | 1,017.44 | 7.49 | 1.49 | ||||||||||||||||||||||||
| Class C | 1,000.00 | 1,035.00 | 7.55 | 1,017.44 | 7.49 | 1.49 | ||||||||||||||||||||||||
| Class R | 1,000.00 | 1,037.60 | 5.03 | 1,019.93 | 4.99 | 0.99 | ||||||||||||||||||||||||
| Class Y | 1,000.00 | 1,040.10 | 2.50 | 1,022.41 | 2.48 | 0.49 | ||||||||||||||||||||||||
| Institutional | 1,000.00 | 1,040.20 | 2.51 | 1,022.41 | 2.48 | 0.49 | ||||||||||||||||||||||||
| 1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2011 through February 29, 2012, 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 182/366 to reflect the most recent fiscal half year. |
36 Invesco Core Plus Bond Fund
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Invesco privacy policy
You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.
Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.
Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.
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 811-09913 and 333-36074.
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.
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 U.S. 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.
| CPB-SAR-1 | Invesco Distributors, Inc. |
Invesco Equally-Weighted S&P 500 Fund
Semiannual Report to Shareholders n February 29, 2012
Nasdaq:
A: VADAX § B: VADBX § C: VADCX § R: VADRX § Y: VADDX
Nasdaq:
A: VADAX § B: VADBX § C: VADCX § R: VADRX § Y: VADDX
| 2 | Fund Performance | |
| 3 | Letters to Shareholders | |
| 4 | Schedule of Investments | |
| 14 | Financial Statements | |
| 16 | Notes to Financial Statements | |
| 23 | Financial Highlights | |
| 24 | Fund Expenses | |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
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 | ||
Fund Performance
Performance summary
Fund vs. Indexes
Cumulative total returns, 8/31/11 to 2/29/12, 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 | 12.33 | % | ||
| Class B Shares | 11.94 | |||
| Class C Shares | 11.90 | |||
| Class R Shares | 12.17 | |||
| Class Y Shares | 12.49 | |||
S&P 500 Index▼ (Broad Market Index) | 13.30 | |||
S&P 500 Equal Weight Index§ (Style-Specific Index) | 12.56 | |||
Lipper Multi-Cap Core Funds Index▼ (Peer Group Index) | 11.16 | |||
| Source(s): ▼Lipper Inc.; §Invesco, Bloomberg L.P. | ||
The S&P 500® Index is an unmanaged index considered representative of the US stock market.
The S&P 500® Equal Weight Index is the equally weighted version of the S&P 500® Index.
The Lipper Multi-Cap Core Funds Index is an unmanaged index considered representative of multi-cap core funds tracked by Lipper.
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.
Average Annual Total Returns
As of 2/29/12, including maximum applicable sales
charges
charges
| Class A Shares | ||||||||
| Inception (7/28/97) | 6.58 | % | ||||||
| 10 | Years | 6.03 | ||||||
| 5 | Years | 1.37 | ||||||
| 1 | Year | -2.87 | ||||||
| Class B Shares | ||||||||
| Inception (12/1/87) | 10.57 | % | ||||||
| 10 | Years | 5.99 | ||||||
| 5 | Years | 1.46 | ||||||
| 1 | Year | -2.98 | ||||||
| Class C Shares | ||||||||
| Inception (7/28/97) | 6.21 | % | ||||||
| 10 | Years | 5.84 | ||||||
| 5 | Years | 1.77 | ||||||
| 1 | Year | 1.02 | ||||||
| Class R Shares | ||||||||
| Inception (3/31/08) | 5.69 | % | ||||||
| 1 | Year | 2.50 | ||||||
| Class Y Shares | ||||||||
| Inception (7/28/97) | 7.25 | % | ||||||
| 10 | Years | 6.89 | ||||||
| 5 | Years | 2.78 | ||||||
| 1 | Year | 3.01 | ||||||
Effective June 1, 2010, Class A, Class B, Class C, Class R, Class W and Class I shares of the predecessor fund, Morgan
Average Annual Total Returns
As of 12/31/11, the most recent calendar quarter-end, including maximum applicable sales charges
| Class A Shares | ||||||||
| Inception (7/28/97) | 5.96 | % | ||||||
| 10 | Years | 5.09 | ||||||
| 5 | Years | -0.15 | ||||||
| 1 | Year | -6.10 | ||||||
| Class B Shares | ||||||||
| Inception (12/1/87) | 10.21 | % | ||||||
| 10 | Years | 5.04 | ||||||
| 5 | Years | -0.06 | ||||||
| 1 | Year | -6.27 | ||||||
| Class C Shares | ||||||||
| Inception (7/28/97) | 5.60 | % | ||||||
| 10 | Years | 4.90 | ||||||
| 5 | Years | 0.25 | ||||||
| 1 | Year | -2.32 | ||||||
| Class R Shares | ||||||||
| Inception (3/31/08) | 3.32 | % | ||||||
| 1 | Year | -0.90 | ||||||
| Class Y Shares | ||||||||
| Inception (7/28/97) | 6.63 | % | ||||||
| 10 | Years | 5.94 | ||||||
| 5 | Years | 1.23 | ||||||
| 1 | Year | -0.39 | ||||||
Stanley Equally-Weighted S&P 500 Fund, advised by Morgan Stanley Investment Advisors Inc. were
reorganized into Class A, Class B, Class C, Class R, Class A and Class Y shares, respectively, of Invesco Equally-Weighted S&P 500 Fund. Returns shown above for Class A, Class B, Class C, Class R and Class Y shares are blended returns of the predecessor fund and Invesco Equally-Weighted S&P 500 Fund. Share class returns will differ from the predecessor fund because of different expenses.
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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. 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 R and Class Y shares was 0.56%, 1.31%, 1.31%, 0.81% and 0.31%, 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 and Class Y 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.
2 Invesco Equally-Weighted S&P 500 Fund
Letters to Shareholders
Bruce Crockett
Dear Fellow Shareholders:
Throughout 2011, we experienced volatile, challenging markets that presented both opportunities and risks for investors. Based on everything I’ve read, this year could potentially be just as interesting, with continued economic uncertainty and market volatility.
With this in mind, you’ll want to stay informed regarding the markets and keep up to date with news that affects your investment portfolio. Invesco’s website, invesco.com/us, provides a wealth of information about your investments and news regarding global markets.
Regardless of economic conditions and market trends, the Invesco Funds Board of Trustees remains committed to putting your interests first. Throughout 2011, we worked to manage costs, and this remains a continuing focus of your Board. We will continue to oversee the funds with the strong sense of responsibility for your money and your continued trust that we’ve always maintained.
I would like to close by thanking Bob Baker for his distinguished 30-year service with the Invesco Funds Board and his unflagging commitment to our funds’ shareholders. As always, I encourage you to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving you in 2012.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Philip Taylor
Dear Shareholders:
This report provides important information about your Fund, including its short- and long-term performance. Also, this report includes a listing of investments held by your Fund at the close of the reporting period.
Investors are likely to confront both opportunities and challenges in 2012. As we saw in 2011, market sentiment can change suddenly and dramatically – and certainly without advance notice – depending on economic developments and world events. Similarly, your own situation, needs and goals can change, requiring adjustments in your financial strategy.
In addition to meeting with your financial adviser regularly to discuss your individual situation, you also may find it helpful to stay abreast of market trends and developments. Doing so may provide reassurance in times of economic uncertainty and market volatility such as we saw last year and may see again this year.
Invesco can help you stay informed about your investments and market trends. On our website, invesco.com/us, we provide timely market updates and commentary from many of our portfolio managers and other investment professionals. Also on our website, you can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer at invesco.com/us.
If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.
All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.
Sincerely,
Philip Taylor
Senior Managing Director, Invesco Ltd.
3 Invesco Equally-Weighted S&P 500 Fund
Schedule of Investments(a)
February 29, 2012
(Unaudited)
| Shares | Value | |||||||
| Common Stocks & Other Equity Interests–98.30% | ||||||||
| Advertising–0.43% | ||||||||
| Interpublic Group of Cos., Inc. (The) | 216,785 | $ | 2,540,720 | |||||
| Omnicom Group Inc. | 47,667 | 2,356,657 | ||||||
| 4,897,377 | ||||||||
| Aerospace & Defense–2.37% | ||||||||
| Boeing Co. (The) | 27,750 | 2,079,863 | ||||||
| General Dynamics Corp. | 31,179 | 2,283,238 | ||||||
| Goodrich Corp. | 16,055 | 2,022,448 | ||||||
| Honeywell International Inc. | 37,109 | 2,210,583 | ||||||
| L-3 Communications Holdings, Inc. | 30,574 | 2,147,824 | ||||||
| Lockheed Martin Corp. | 25,558 | 2,259,583 | ||||||
| Northrop Grumman Corp. | 35,403 | 2,117,453 | ||||||
| Precision Castparts Corp. | 12,629 | 2,114,473 | ||||||
| Raytheon Co. | 43,300 | 2,187,516 | ||||||
| Rockwell Collins, Inc. | 36,695 | 2,175,647 | ||||||
| Textron Inc. | 110,582 | 3,042,111 | ||||||
| United Technologies Corp. | 27,221 | 2,283,025 | ||||||
| 26,923,764 | ||||||||
| Agricultural Products–0.20% | ||||||||
| Archer-Daniels-Midland Co. | 71,139 | 2,219,537 | ||||||
| Air Freight & Logistics–0.73% | ||||||||
| C.H. Robinson Worldwide, Inc. | 29,592 | 1,958,103 | ||||||
| Expeditors International of Washington, Inc. | 48,812 | 2,129,667 | ||||||
| FedEx Corp. | 23,212 | 2,088,848 | ||||||
| United Parcel Service, Inc.–Class B | 27,460 | 2,111,399 | ||||||
| 8,288,017 | ||||||||
| Airlines–0.18% | ||||||||
| Southwest Airlines Co. | 226,243 | 2,031,662 | ||||||
| Aluminum–0.20% | ||||||||
| Alcoa Inc. | 223,675 | 2,274,775 | ||||||
| Apparel Retail–1.19% | ||||||||
| Abercrombie & Fitch Co.–Class A | 42,314 | 1,937,558 | ||||||
| Gap, Inc. (The) | 107,681 | 2,515,428 | ||||||
| Limited Brands, Inc. | 51,317 | 2,387,780 | ||||||
| Ross Stores, Inc. | 41,927 | 2,235,967 | ||||||
| TJX Cos., Inc. (The) | 63,423 | 2,321,916 | ||||||
Urban Outfitters, Inc.(b) | 74,137 | 2,104,750 | ||||||
| 13,503,399 | ||||||||
| Apparel, Accessories & Luxury Goods–0.64% | ||||||||
| Coach, Inc. | 34,216 | 2,560,725 | ||||||
| Ralph Lauren Corp. | 14,163 | 2,460,538 | ||||||
| VF Corp. | 15,337 | 2,239,969 | ||||||
| 7,261,232 | ||||||||
| Application Software–1.04% | ||||||||
Adobe Systems Inc.(b) | 69,878 | 2,298,287 | ||||||
Autodesk, Inc.(b) | 63,159 | 2,390,568 | ||||||
Citrix Systems, Inc.(b) | 30,751 | 2,298,330 | ||||||
| Intuit Inc. | 38,055 | 2,201,101 | ||||||
Salesforce.com, Inc.(b) | 18,405 | 2,634,860 | ||||||
| 11,823,146 | ||||||||
| Asset Management & Custody Banks–2.08% | ||||||||
| Ameriprise Financial, Inc. | 42,332 | 2,360,432 | ||||||
| Bank of New York Mellon Corp. (The) | 103,063 | 2,278,723 | ||||||
| BlackRock, Inc. | 11,568 | 2,302,032 | ||||||
| Federated Investors, Inc.–Class B | 133,780 | 2,741,152 | ||||||
| Franklin Resources, Inc. | 20,943 | 2,468,970 | ||||||
Invesco Ltd.(c) | 102,420 | 2,536,943 | ||||||
| Legg Mason, Inc. | 83,819 | 2,295,802 | ||||||
| Northern Trust Corp. | 50,553 | 2,245,059 | ||||||
| State Street Corp. | 49,215 | 2,078,350 | ||||||
| T. Rowe Price Group Inc. | 36,303 | 2,235,902 | ||||||
| 23,543,365 | ||||||||
| Auto Parts & Equipment–0.43% | ||||||||
BorgWarner, Inc.(b) | 31,604 | 2,618,075 | ||||||
| Johnson Controls, Inc. | 68,044 | 2,220,276 | ||||||
| 4,838,351 | ||||||||
| Automobile Manufacturers–0.21% | ||||||||
| Ford Motor Co. | 192,251 | 2,380,067 | ||||||
| Automotive Retail–0.73% | ||||||||
AutoNation, Inc.(b) | 55,090 | 1,877,467 | ||||||
AutoZone, Inc.(b) | 6,044 | 2,263,357 | ||||||
CarMax, Inc.(b) | 64,906 | 1,991,965 | ||||||
O’Reilly Automotive, Inc.(b) | 24,668 | 2,133,782 | ||||||
| 8,266,571 | ||||||||
| Biotechnology–0.79% | ||||||||
| Amgen Inc. | 32,814 | 2,229,711 | ||||||
Biogen Idec Inc.(b) | 17,866 | 2,080,853 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 Invesco Equally-Weighted S&P 500 Fund
| Shares | Value | |||||||
Biotechnology–(continued) | ||||||||
Celgene Corp.(b) | 30,939 | $ | 2,268,602 | |||||
Gilead Sciences, Inc.(b) | 53,029 | 2,412,820 | ||||||
| 8,991,986 | ||||||||
| Brewers–0.18% | ||||||||
| Molson Coors Brewing Co.–Class B | 46,214 | 2,030,643 | ||||||
| Broadcasting–0.60% | ||||||||
| CBS Corp.–Class B | 79,330 | 2,371,967 | ||||||
Discovery Communications, Inc.–Class A(b) | 49,055 | 2,288,416 | ||||||
| Scripps Networks Interactive–Class A | 47,154 | 2,131,361 | ||||||
| 6,791,744 | ||||||||
| Building Products–0.23% | ||||||||
| Masco Corp. | 215,129 | 2,555,733 | ||||||
| Cable & Satellite–0.83% | ||||||||
| Cablevision Systems Corp.–Class A | 154,555 | 2,199,318 | ||||||
| Comcast Corp.–Class A | 84,465 | 2,481,582 | ||||||
DIRECTV–Class A(b) | 46,807 | 2,168,100 | ||||||
| Time Warner Cable Inc. | 31,675 | 2,513,094 | ||||||
| 9,362,094 | ||||||||
| Casinos & Gaming–0.36% | ||||||||
| International Game Technology | 125,515 | 1,885,235 | ||||||
| Wynn Resorts Ltd. | 18,651 | 2,210,890 | ||||||
| 4,096,125 | ||||||||
| Coal & Consumable Fuels–0.52% | ||||||||
Alpha Natural Resources, Inc.(b) | 100,437 | 1,864,111 | ||||||
| CONSOL Energy Inc. | 54,255 | 1,943,414 | ||||||
| Peabody Energy Corp. | 59,750 | 2,084,080 | ||||||
| 5,891,605 | ||||||||
| Commercial Printing–0.17% | ||||||||
| R. R. Donnelley & Sons Co. | 137,322 | 1,897,790 | ||||||
| Communications Equipment–1.64% | ||||||||
| Cisco Systems, Inc. | 109,842 | 2,183,659 | ||||||
F5 Networks, Inc.(b) | 18,797 | 2,348,873 | ||||||
| Harris Corp. | 57,467 | 2,507,285 | ||||||
JDS Uniphase Corp.(b) | 206,776 | 2,696,359 | ||||||
Juniper Networks, Inc.(b) | 107,388 | 2,444,151 | ||||||
Motorola Mobility Holdings Inc.(b) | 50,919 | 2,021,484 | ||||||
| Motorola Solutions, Inc. | 42,690 | 2,125,962 | ||||||
| QUALCOMM, Inc. | 37,455 | 2,328,952 | ||||||
| 18,656,725 | ||||||||
| Computer & Electronics Retail–0.35% | ||||||||
| Best Buy Co., Inc. | 84,975 | 2,098,882 | ||||||
| GameStop Corp.–Class A | 84,429 | 1,923,293 | ||||||
| 4,022,175 | ||||||||
| Computer Hardware–0.62% | ||||||||
Apple Inc.(b) | 5,171 | 2,804,957 | ||||||
Dell Inc.(b) | 131,110 | 2,268,203 | ||||||
| Hewlett-Packard Co. | 76,260 | 1,930,141 | ||||||
| 7,003,301 | ||||||||
| Computer Storage & Peripherals–1.02% | ||||||||
EMC Corp.(b) | 88,366 | 2,446,855 | ||||||
| Lexmark International, Inc.–Class A | 60,188 | 2,219,733 | ||||||
NetApp, Inc.(b) | 55,182 | 2,372,826 | ||||||
SanDisk Corp.(b) | 41,130 | 2,034,290 | ||||||
Western Digital Corp.(b) | 63,669 | 2,499,008 | ||||||
| 11,572,712 | ||||||||
| Construction & Engineering–0.59% | ||||||||
| Fluor Corp. | 40,976 | 2,478,228 | ||||||
Jacobs Engineering Group, Inc.(b) | 49,499 | 2,287,844 | ||||||
Quanta Services, Inc.(b) | 94,241 | 1,969,637 | ||||||
| 6,735,709 | ||||||||
| Construction & Farm Machinery & Heavy Trucks–1.08% | ||||||||
| Caterpillar Inc. | 22,597 | 2,580,803 | ||||||
| Cummins Inc. | 22,572 | 2,721,506 | ||||||
| Deere & Co. | 26,755 | 2,218,792 | ||||||
| Joy Global Inc. | 26,214 | 2,279,570 | ||||||
| PACCAR Inc. | 54,405 | 2,503,174 | ||||||
| 12,303,845 | ||||||||
| Construction Materials–0.20% | ||||||||
| Vulcan Materials Co. | 50,814 | 2,264,272 | ||||||
| Consumer Electronics–0.24% | ||||||||
| Harman International Industries, Inc. | 56,173 | 2,759,779 | ||||||
| Consumer Finance–0.82% | ||||||||
| American Express Co. | 42,034 | 2,223,178 | ||||||
| Capital One Financial Corp. | 45,415 | 2,297,999 | ||||||
| Discover Financial Services | 81,327 | 2,440,623 | ||||||
| SLM Corp. | 146,948 | 2,315,901 | ||||||
| 9,277,701 | ||||||||
| Data Processing & Outsourced Services–1.77% | ||||||||
| Automatic Data Processing, Inc. | 38,092 | 2,069,157 | ||||||
| Computer Sciences Corp. | 75,995 | 2,413,601 | ||||||
| Fidelity National Information Services, Inc. | 77,520 | 2,459,710 | ||||||
Fiserv, Inc.(b) | 34,312 | 2,274,886 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 Invesco Equally-Weighted S&P 500 Fund
| Shares | Value | |||||||
Data Processing & Outsourced Services–(continued) | ||||||||
| MasterCard, Inc.–Class A | 5,441 | $ | 2,285,220 | |||||
| Paychex, Inc. | 66,595 | 2,084,423 | ||||||
| Total System Services, Inc. | 102,580 | 2,244,450 | ||||||
| Visa Inc.–Class A | 20,223 | 2,353,351 | ||||||
| Western Union Co. | 110,830 | 1,936,200 | ||||||
| 20,120,998 | ||||||||
| Department Stores–1.06% | ||||||||
| JC Penney Co., Inc. | 60,372 | 2,390,731 | ||||||
| Kohl’s Corp. | 40,363 | 2,005,234 | ||||||
| Macy’s, Inc. | 63,505 | 2,411,285 | ||||||
| Nordstrom, Inc. | 41,900 | 2,246,678 | ||||||
Sears Holdings Corp.(b) | 42,690 | 2,973,785 | ||||||
| 12,027,713 | ||||||||
| Distillers & Vintners–0.57% | ||||||||
| Beam Inc. | 40,092 | 2,208,268 | ||||||
| Brown-Forman Corp.–Class B | 25,351 | 2,069,909 | ||||||
Constellation Brands, Inc.–Class A(b) | 100,900 | 2,203,656 | ||||||
| 6,481,833 | ||||||||
| Distributors–0.19% | ||||||||
| Genuine Parts Co. | 33,858 | 2,122,219 | ||||||
| Diversified Banks–0.61% | ||||||||
| Comerica, Inc. | 79,650 | 2,364,809 | ||||||
| U.S. Bancorp | 75,790 | 2,228,226 | ||||||
| Wells Fargo & Co. | 75,849 | 2,373,315 | ||||||
| 6,966,350 | ||||||||
| Diversified Chemicals–1.08% | ||||||||
| Dow Chemical Co. (The) | 74,755 | 2,505,040 | ||||||
| E. I. du Pont de Nemours and Co. | 44,806 | 2,278,385 | ||||||
| Eastman Chemical Co. | 53,635 | 2,903,263 | ||||||
| FMC Corp. | 23,322 | 2,308,178 | ||||||
| PPG Industries, Inc. | 24,366 | 2,223,398 | ||||||
| 12,218,264 | ||||||||
| Diversified Metals & Mining–0.37% | ||||||||
| Freeport-McMoRan Copper & Gold Inc. | 53,273 | 2,267,299 | ||||||
| Titanium Metals Corp. | 132,609 | 1,944,048 | ||||||
| 4,211,347 | ||||||||
| Diversified REIT’s–0.19% | ||||||||
| Vornado Realty Trust | 26,546 | 2,169,605 | ||||||
| Diversified Support Services–0.40% | ||||||||
| Cintas Corp. | 64,566 | 2,489,665 | ||||||
| Iron Mountain Inc. | 65,337 | 2,028,714 | ||||||
| 4,518,379 | ||||||||
| Drug Retail–0.38% | ||||||||
| CVS Caremark Corp. | 52,478 | 2,366,758 | ||||||
| Walgreen Co. | 57,737 | 1,914,559 | ||||||
| 4,281,317 | ||||||||
| Education Services–0.33% | ||||||||
Apollo Group, Inc.–Class A(b) | 39,292 | 1,675,411 | ||||||
| DeVry, Inc. | 57,788 | 2,053,208 | ||||||
| 3,728,619 | ||||||||
| Electric Utilities–2.24% | ||||||||
| American Electric Power Co., Inc. | 49,686 | 1,868,690 | ||||||
| Duke Energy Corp. | 93,792 | 1,962,129 | ||||||
| Edison International | 50,141 | 2,099,404 | ||||||
| Entergy Corp. | 27,506 | 1,832,725 | ||||||
| Exelon Corp. | 45,998 | 1,797,142 | ||||||
| FirstEnergy Corp. | 45,373 | 2,009,570 | ||||||
| NextEra Energy, Inc. | 34,051 | 2,026,375 | ||||||
| Northeast Utilities | 56,723 | 2,036,356 | ||||||
| Pepco Holdings, Inc. | 101,733 | 1,977,689 | ||||||
| Pinnacle West Capital Corp. | 42,260 | 1,987,488 | ||||||
| PPL Corp. | 68,565 | 1,957,531 | ||||||
| Progress Energy, Inc. | 36,688 | 1,947,399 | ||||||
| Southern Co. (The) | 44,233 | 1,954,656 | ||||||
| 25,457,154 | ||||||||
| Electrical Components & Equipment–0.77% | ||||||||
| Cooper Industries PLC (Ireland) | 38,122 | 2,333,829 | ||||||
| Emerson Electric Co. | 40,108 | 2,017,833 | ||||||
| Rockwell Automation, Inc. | 27,425 | 2,193,452 | ||||||
| Roper Industries, Inc. | 23,718 | 2,170,671 | ||||||
| 8,715,785 | ||||||||
| Electronic Components–0.41% | ||||||||
| Amphenol Corp.–Class A | 47,346 | 2,649,482 | ||||||
| Corning Inc. | 150,655 | 1,964,541 | ||||||
| 4,614,023 | ||||||||
| Electronic Equipment & Instruments–0.18% | ||||||||
| FLIR Systems, Inc. | 78,259 | 2,048,038 | ||||||
| Electronic Manufacturing Services–0.65% | ||||||||
| Jabil Circuit, Inc. | 101,471 | 2,620,996 | ||||||
| Molex Inc. | 86,581 | 2,346,345 | ||||||
| TE Connectivity Ltd. | 64,714 | 2,365,297 | ||||||
| 7,332,638 | ||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Equally-Weighted S&P 500 Fund
| Shares | Value | |||||||
| Environmental & Facilities Services–0.59% | ||||||||
| Republic Services, Inc. | 74,473 | $ | 2,221,530 | |||||
Stericycle, Inc.(b) | 25,755 | 2,234,761 | ||||||
| Waste Management, Inc. | 63,566 | 2,223,539 | ||||||
| 6,679,830 | ||||||||
| Fertilizers & Agricultural Chemicals–0.65% | ||||||||
| CF Industries Holdings, Inc. | 15,170 | 2,821,620 | ||||||
| Monsanto Co. | 28,918 | 2,237,675 | ||||||
| Mosaic Co. (The) | 40,950 | 2,364,862 | ||||||
| 7,424,157 | ||||||||
| Food Distributors–0.18% | ||||||||
| Sysco Corp. | 68,185 | 2,006,003 | ||||||
| Food Retail–0.72% | ||||||||
| Kroger Co. (The) | 83,111 | 1,977,211 | ||||||
| Safeway Inc. | 95,798 | 2,054,867 | ||||||
| SUPERVALU Inc. | 263,095 | 1,718,010 | ||||||
| Whole Foods Market, Inc. | 29,784 | 2,404,760 | ||||||
| 8,154,848 | ||||||||
| Footwear–0.20% | ||||||||
| NIKE, Inc.–Class B | 21,037 | 2,270,313 | ||||||
| Gas Utilities–0.34% | ||||||||
| AGL Resources Inc. | 48,051 | 1,915,794 | ||||||
| ONEOK, Inc. | 24,013 | 1,984,434 | ||||||
| 3,900,228 | ||||||||
| General Merchandise Stores–0.74% | ||||||||
Big Lots, Inc.(b) | 53,811 | 2,359,612 | ||||||
Dollar Tree, Inc.(b) | 23,793 | 2,105,918 | ||||||
| Family Dollar Stores, Inc. | 34,021 | 1,836,794 | ||||||
| Target Corp. | 37,749 | 2,139,991 | ||||||
| 8,442,315 | ||||||||
| Gold–0.17% | ||||||||
| Newmont Mining Corp. | 31,690 | 1,882,386 | ||||||
| Health Care Distributors–0.73% | ||||||||
| AmerisourceBergen Corp. | 53,621 | 2,002,744 | ||||||
| Cardinal Health, Inc. | 48,133 | 1,999,926 | ||||||
| McKesson Corp. | 25,360 | 2,117,814 | ||||||
| Patterson Cos. Inc. | 69,021 | 2,203,150 | ||||||
| 8,323,634 | ||||||||
| Health Care Equipment–2.60% | ||||||||
| Baxter International Inc. | 40,984 | 2,382,400 | ||||||
| Becton, Dickinson and Co. | 27,891 | 2,125,852 | ||||||
Boston Scientific Corp.(b) | 383,382 | 2,384,636 | ||||||
| C.R. Bard, Inc. | 22,870 | 2,141,089 | ||||||
CareFusion Corp.(b) | 81,902 | 2,113,891 | ||||||
| Covidien PLC (Ireland) | 45,467 | 2,375,651 | ||||||
Edwards Lifesciences Corp.(b) | 29,240 | 2,138,321 | ||||||
Intuitive Surgical, Inc.(b) | 4,560 | 2,332,987 | ||||||
| Medtronic, Inc. | 55,823 | 2,127,973 | ||||||
| St. Jude Medical, Inc. | 59,804 | 2,518,945 | ||||||
| Stryker Corp. | 42,644 | 2,287,424 | ||||||
Varian Medical Systems, Inc.(b) | 31,184 | 2,034,756 | ||||||
| Zimmer Holdings, Inc. | 41,467 | 2,519,120 | ||||||
| 29,483,045 | ||||||||
| Health Care Facilities–0.22% | ||||||||
Tenet Healthcare Corp.(b) | 445,833 | 2,518,956 | ||||||
| Health Care Services–1.00% | ||||||||
DaVita, Inc.(b) | 26,575 | 2,300,066 | ||||||
Express Scripts, Inc.(b) | 45,279 | 2,414,729 | ||||||
Laboratory Corp. of America Holdings(b) | 24,139 | 2,169,855 | ||||||
Medco Health Solutions, Inc.(b) | 36,070 | 2,437,971 | ||||||
| Quest Diagnostics Inc. | 35,038 | 2,033,956 | ||||||
| 11,356,577 | ||||||||
| Health Care Supplies–0.19% | ||||||||
| DENTSPLY International Inc. | 56,854 | 2,199,113 | ||||||
| Health Care Technology–0.23% | ||||||||
Cerner Corp.(b) | 34,969 | 2,581,761 | ||||||
| Home Entertainment Software–0.14% | ||||||||
Electronic Arts Inc.(b) | 97,432 | 1,591,065 | ||||||
| Home Furnishings–0.18% | ||||||||
| Leggett & Platt, Inc. | 90,518 | 2,048,422 | ||||||
| Home Improvement Retail–0.40% | ||||||||
| Home Depot, Inc. (The) | 48,752 | 2,319,133 | ||||||
| Lowe’s Cos., Inc. | 78,759 | 2,235,180 | ||||||
| 4,554,313 | ||||||||
| Homebuilding–0.69% | ||||||||
| D.R. Horton, Inc. | 164,214 | 2,354,829 | ||||||
| Lennar Corp.–Class A | 104,985 | 2,454,549 | ||||||
PulteGroup Inc.(b) | 342,115 | 3,017,454 | ||||||
| 7,826,832 | ||||||||
| Homefurnishing Retail–0.17% | ||||||||
Bed Bath & Beyond, Inc.(b) | 32,187 | 1,922,851 | ||||||
| Hotels, Resorts & Cruise Lines–0.80% | ||||||||
| Carnival Corp. | 58,180 | 1,762,272 | ||||||
| Marriott International Inc.–Class A | 68,997 | 2,434,214 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Equally-Weighted S&P 500 Fund
| Shares | Value | |||||||
Hotels, Resorts & Cruise Lines–(continued) | ||||||||
| Starwood Hotels & Resorts Worldwide, Inc. | 43,385 | $ | 2,338,452 | |||||
| Wyndham Worldwide Corp. | 56,560 | 2,488,074 | ||||||
| 9,023,012 | ||||||||
| Household Appliances–0.28% | ||||||||
| Whirlpool Corp. | 42,250 | 3,192,833 | ||||||
| Household Products–0.72% | ||||||||
| Clorox Co. (The) | 30,315 | 2,049,597 | ||||||
| Colgate-Palmolive Co. | 21,921 | 2,042,599 | ||||||
| Kimberly-Clark Corp. | 27,645 | 2,014,768 | ||||||
| Procter & Gamble Co. (The) | 30,250 | 2,042,480 | ||||||
| 8,149,444 | ||||||||
| Housewares & Specialties–0.21% | ||||||||
| Newell Rubbermaid Inc. | 131,459 | 2,405,700 | ||||||
| Human Resource & Employment Services–0.18% | ||||||||
| Robert Half International, Inc. | 72,687 | 2,066,491 | ||||||
| Hypermarkets & Super Centers–0.36% | ||||||||
| Costco Wholesale Corp. | 23,865 | 2,053,822 | ||||||
| Wal-Mart Stores, Inc. | 33,817 | 1,997,908 | ||||||
| 4,051,730 | ||||||||
| Independent Power Producers & Energy Traders–0.53% | ||||||||
AES Corp. (The)(b) | 171,355 | 2,323,574 | ||||||
| Constellation Energy Group Inc. | 50,579 | 1,833,995 | ||||||
NRG Energy, Inc.(b) | 107,622 | 1,840,336 | ||||||
| 5,997,905 | ||||||||
| Industrial Conglomerates–0.79% | ||||||||
| 3M Co. | 24,984 | 2,188,599 | ||||||
| Danaher Corp. | 42,496 | 2,245,064 | ||||||
| General Electric Co. | 115,847 | 2,206,885 | ||||||
| Tyco International Ltd. | 43,927 | 2,276,297 | ||||||
| 8,916,845 | ||||||||
| Industrial Gases–0.56% | ||||||||
| Air Products & Chemicals, Inc. | 23,873 | 2,154,299 | ||||||
| Airgas, Inc. | 25,738 | 2,119,010 | ||||||
| Praxair, Inc. | 18,989 | 2,069,801 | ||||||
| 6,343,110 | ||||||||
| Industrial Machinery–2.07% | ||||||||
| Dover Corp. | 35,100 | 2,247,102 | ||||||
| Eaton Corp. | 46,707 | 2,437,638 | ||||||
| Flowserve Corp. | 20,202 | 2,395,351 | ||||||
| Illinois Tool Works Inc. | 42,838 | 2,385,648 | ||||||
| Ingersoll-Rand PLC (Ireland) | 64,292 | 2,563,965 | ||||||
| Pall Corp. | 34,815 | 2,209,012 | ||||||
| Parker Hannifin Corp. | 26,266 | 2,358,949 | ||||||
| Snap-on, Inc. | 39,736 | 2,429,062 | ||||||
| Stanley Black & Decker Inc. | 31,228 | 2,398,310 | ||||||
| Xylem, Inc. | 79,876 | 2,075,179 | ||||||
| 23,500,216 | ||||||||
| Industrial REIT’s–0.21% | ||||||||
| Prologis, Inc. | 71,630 | 2,411,066 | ||||||
| Insurance Brokers–0.36% | ||||||||
| Aon Corp. | 43,927 | 2,056,223 | ||||||
| Marsh & McLennan Cos., Inc. | 64,778 | 2,021,073 | ||||||
| 4,077,296 | ||||||||
| Integrated Oil & Gas–1.19% | ||||||||
| Chevron Corp. | 19,537 | 2,131,877 | ||||||
| ConocoPhillips | 28,809 | 2,205,329 | ||||||
| Exxon Mobil Corp. | 24,582 | 2,126,343 | ||||||
| Hess Corp. | 36,283 | 2,355,492 | ||||||
| Murphy Oil Corp. | 37,757 | 2,414,183 | ||||||
| Occidental Petroleum Corp. | 22,073 | 2,303,759 | ||||||
| 13,536,983 | ||||||||
| Integrated Telecommunication Services–0.90% | ||||||||
| AT&T Inc. | 68,303 | 2,089,389 | ||||||
| CenturyLink Inc. | 55,886 | 2,249,411 | ||||||
| Frontier Communications Corp. | 400,524 | 1,838,405 | ||||||
| Verizon Communications Inc. | 50,814 | 1,936,522 | ||||||
| Windstream Corp. | 170,171 | 2,055,666 | ||||||
| 10,169,393 | ||||||||
| Internet Retail–1.10% | ||||||||
Amazon.com, Inc.(b) | 10,871 | 1,953,410 | ||||||
| Expedia, Inc. | 74,857 | 2,548,881 | ||||||
Netflix Inc.(b) | 28,223 | 3,125,133 | ||||||
Priceline.com Inc.(b) | 4,311 | 2,703,083 | ||||||
TripAdvisor Inc.(b) | 65,647 | 2,115,803 | ||||||
| 12,446,310 | ||||||||
| Internet Software & Services–0.97% | ||||||||
Akamai Technologies, Inc.(b) | 73,942 | 2,661,912 | ||||||
eBay Inc.(b) | 64,821 | 2,316,703 | ||||||
Google Inc.–Class A(b) | 3,148 | 1,946,251 | ||||||
| VeriSign, Inc. | 56,756 | 2,097,134 | ||||||
Yahoo! Inc.(b) | 131,723 | 1,953,452 | ||||||
| 10,975,452 | ||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Equally-Weighted S&P 500 Fund
| Shares | Value | |||||||
| Investment Banking & Brokerage–0.88% | ||||||||
| Charles Schwab Corp. (The) | 181,620 | $ | 2,520,886 | |||||
E*TRADE Financial Corp.(b) | 255,257 | 2,458,125 | ||||||
| Goldman Sachs Group, Inc. (The) | 21,870 | 2,518,112 | ||||||
| Morgan Stanley | 131,547 | 2,438,881 | ||||||
| 9,936,004 | ||||||||
| IT Consulting & Other Services–0.97% | ||||||||
| Accenture PLC–Class A (Ireland) | 36,390 | 2,166,661 | ||||||
Cognizant Technology Solutions Corp.–Class A(b) | 30,089 | 2,134,815 | ||||||
| International Business Machines Corp. | 10,734 | 2,111,700 | ||||||
SAIC, Inc.(b) | 161,920 | 1,978,662 | ||||||
Teradata Corp.(b) | 39,986 | 2,661,068 | ||||||
| 11,052,906 | ||||||||
| Leisure Products–0.38% | ||||||||
| Hasbro, Inc. | 57,923 | 2,045,841 | ||||||
| Mattel, Inc. | 70,503 | 2,287,117 | ||||||
| 4,332,958 | ||||||||
| Life & Health Insurance–1.47% | ||||||||
| Aflac, Inc. | 48,168 | 2,275,938 | ||||||
| Lincoln National Corp. | 106,460 | 2,644,466 | ||||||
| MetLife, Inc. | 65,185 | 2,512,882 | ||||||
| Principal Financial Group, Inc. | 83,712 | 2,315,474 | ||||||
| Prudential Financial, Inc. | 40,993 | 2,507,132 | ||||||
| Torchmark Corp. | 46,762 | 2,265,151 | ||||||
| Unum Group | 95,752 | 2,207,084 | ||||||
| 16,728,127 | ||||||||
| Life Sciences Tools & Services–1.13% | ||||||||
| Agilent Technologies, Inc. | 58,893 | 2,568,913 | ||||||
Life Technologies Corp.(b) | 50,670 | 2,397,198 | ||||||
| PerkinElmer, Inc. | 106,116 | 2,865,132 | ||||||
| Thermo Fisher Scientific, Inc. | 44,949 | 2,545,012 | ||||||
Waters Corp.(b) | 27,517 | 2,465,523 | ||||||
| 12,841,778 | ||||||||
| Managed Health Care–1.12% | ||||||||
| Aetna Inc. | 48,788 | 2,281,327 | ||||||
| CIGNA Corp. | 46,497 | 2,050,983 | ||||||
Coventry Health Care, Inc.(b) | 63,958 | 2,090,787 | ||||||
| Humana Inc. | 23,251 | 2,025,162 | ||||||
| UnitedHealth Group Inc. | 40,215 | 2,241,986 | ||||||
| WellPoint, Inc. | 30,339 | 1,991,148 | ||||||
| 12,681,393 | ||||||||
| Metal & Glass Containers–0.43% | ||||||||
| Ball Corp. | 56,903 | 2,280,672 | ||||||
Owens-Illinois, Inc.(b) | 107,740 | 2,574,986 | ||||||
| 4,855,658 | ||||||||
| Motorcycle Manufacturers–0.22% | ||||||||
| Harley-Davidson, Inc. | 53,708 | 2,501,719 | ||||||
| Movies & Entertainment–0.79% | ||||||||
| News Corp.–Class A | 116,052 | 2,305,953 | ||||||
| Time Warner Inc. | 56,969 | 2,119,817 | ||||||
| Viacom Inc.–Class B | 46,084 | 2,194,520 | ||||||
| Walt Disney Co. (The) | 55,792 | 2,342,706 | ||||||
| 8,962,996 | ||||||||
| Multi-Line Insurance–1.07% | ||||||||
American International Group, Inc.(b) | 84,357 | 2,464,912 | ||||||
| Assurant, Inc. | 50,001 | 2,123,542 | ||||||
Genworth Financial Inc.–Class A(b) | 314,789 | 2,861,432 | ||||||
| Hartford Financial Services Group, Inc. (The) | 125,835 | 2,606,043 | ||||||
| Loews Corp. | 53,316 | 2,086,788 | ||||||
| 12,142,717 | ||||||||
| Multi-Sector Holdings–0.22% | ||||||||
| Leucadia National Corp. | 89,409 | 2,547,262 | ||||||
| Multi-Utilities–2.66% | ||||||||
| Ameren Corp. | 62,143 | 1,992,926 | ||||||
| CenterPoint Energy, Inc. | 102,527 | 1,998,251 | ||||||
| CMS Energy Corp. | 94,421 | 2,021,554 | ||||||
| Consolidated Edison, Inc. | 32,963 | 1,915,150 | ||||||
| Dominion Resources, Inc. | 38,905 | 1,963,535 | ||||||
| DTE Energy Co. | 38,307 | 2,068,195 | ||||||
| Integrys Energy Group, Inc. | 38,114 | 1,983,071 | ||||||
| NiSource Inc. | 87,464 | 2,099,136 | ||||||
| PG&E Corp. | 49,289 | 2,054,366 | ||||||
| Public Service Enterprise Group Inc. | 62,977 | 1,938,432 | ||||||
| SCANA Corp. | 46,063 | 2,072,835 | ||||||
| Sempra Energy | 37,292 | 2,209,178 | ||||||
| TECO Energy, Inc. | 107,505 | 1,929,715 | ||||||
| Wisconsin Energy Corp. | 58,928 | 2,008,266 | ||||||
| Xcel Energy, Inc. | 74,614 | 1,976,525 | ||||||
| 30,231,135 | ||||||||
| Office Electronics–0.18% | ||||||||
| Xerox Corp. | 247,249 | 2,034,859 | ||||||
| Office REIT’s–0.18% | ||||||||
| Boston Properties, Inc. | 20,534 | 2,085,228 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Equally-Weighted S&P 500 Fund
| Shares | Value | |||||||
| Office Services & Supplies–0.36% | ||||||||
| Avery Dennison Corp. | 71,735 | $ | 2,187,917 | |||||
| Pitney Bowes Inc. | 107,446 | 1,947,996 | ||||||
| 4,135,913 | ||||||||
| Oil & Gas Drilling–1.08% | ||||||||
| Diamond Offshore Drilling, Inc. | 36,296 | 2,485,187 | ||||||
| Helmerich & Payne, Inc. | 35,326 | 2,165,484 | ||||||
Nabors Industries Ltd. (Bermuda)(b) | 117,716 | 2,563,855 | ||||||
Noble Corp. (Switzerland)(b) | 64,397 | 2,587,471 | ||||||
Rowan Cos., Inc.(b) | 65,971 | 2,432,351 | ||||||
| 12,234,348 | ||||||||
| Oil & Gas Equipment & Services–1.19% | ||||||||
| Baker Hughes Inc. | 42,904 | 2,157,213 | ||||||
Cameron International Corp.(b) | 41,441 | 2,308,678 | ||||||
FMC Technologies, Inc.(b) | 39,881 | 2,011,199 | ||||||
| Halliburton Co. | 62,045 | 2,270,227 | ||||||
| National Oilwell Varco Inc. | 30,070 | 2,481,677 | ||||||
| Schlumberger Ltd. | 29,450 | 2,285,614 | ||||||
| 13,514,608 | ||||||||
| Oil & Gas Exploration & Production–3.12% | ||||||||
| Anadarko Petroleum Corp. | 27,015 | 2,272,502 | ||||||
| Apache Corp. | 22,205 | 2,396,586 | ||||||
| Cabot Oil & Gas Corp. | 53,136 | 1,853,384 | ||||||
| Chesapeake Energy Corp. | 85,752 | 2,143,800 | ||||||
Denbury Resources Inc.(b) | 131,899 | 2,626,109 | ||||||
| Devon Energy Corp. | 32,597 | 2,389,686 | ||||||
| EOG Resources, Inc. | 20,173 | 2,296,898 | ||||||
| EQT Corp. | 36,263 | 1,922,664 | ||||||
| Marathon Oil Corp. | 71,970 | 2,439,063 | ||||||
Newfield Exploration Co.(b) | 53,244 | 1,916,784 | ||||||
| Noble Energy, Inc. | 21,880 | 2,136,582 | ||||||
| Pioneer Natural Resources Co. | 23,520 | 2,578,733 | ||||||
| QEP Resources Inc. | 68,256 | 2,330,260 | ||||||
| Range Resources Corp. | 32,733 | 2,084,437 | ||||||
Southwestern Energy Co.(b) | 58,840 | 1,945,250 | ||||||
WPX Energy Inc.(b) | 112,228 | 2,038,061 | ||||||
| 35,370,799 | ||||||||
| Oil & Gas Refining & Marketing–0.85% | ||||||||
| Marathon Petroleum Corp. | 61,657 | 2,561,848 | ||||||
| Sunoco, Inc. | 60,544 | 2,338,815 | ||||||
Tesoro Corp.(b) | 89,166 | 2,365,574 | ||||||
| Valero Energy Corp. | 96,032 | 2,351,824 | ||||||
| 9,618,061 | ||||||||
| Oil & Gas Storage & Transportation–0.58% | ||||||||
| El Paso Corp. | 78,885 | 2,193,792 | ||||||
| Spectra Energy Corp. | 67,003 | 2,102,554 | ||||||
| Williams Cos., Inc. (The) | 77,845 | 2,326,009 | ||||||
| 6,622,355 | ||||||||
| Other Diversified Financial Services–0.70% | ||||||||
| Bank of America Corp. | 378,958 | 3,020,295 | ||||||
| Citigroup Inc. | 75,703 | 2,522,424 | ||||||
| JPMorgan Chase & Co. | 61,792 | 2,424,718 | ||||||
| 7,967,437 | ||||||||
| Packaged Foods & Meats–2.50% | ||||||||
| Campbell Soup Co. | 60,225 | 2,006,697 | ||||||
| ConAgra Foods, Inc. | 77,428 | 2,032,485 | ||||||
Dean Foods Co.(b) | 183,822 | 2,253,658 | ||||||
| General Mills, Inc. | 49,611 | 1,900,597 | ||||||
| H.J. Heinz Co. | 37,201 | 1,960,865 | ||||||
| Hershey Co. (The) | 33,174 | 2,013,662 | ||||||
| Hormel Foods Corp. | 68,925 | 1,962,295 | ||||||
| J M Smucker Co. (The) | 25,671 | 1,933,540 | ||||||
| Kellogg Co. | 40,404 | 2,115,149 | ||||||
| Kraft Foods Inc.–Class A | 54,003 | 2,055,894 | ||||||
| McCormick & Co., Inc. | 40,413 | 2,038,836 | ||||||
| Mead Johnson Nutrition Co. | 27,023 | 2,101,038 | ||||||
| Sara Lee Corp. | 106,980 | 2,166,345 | ||||||
| Tyson Foods, Inc.–Class A | 96,739 | 1,829,334 | ||||||
| 28,370,395 | ||||||||
| Paper Packaging–0.38% | ||||||||
| Bemis Co., Inc. | 67,277 | 2,110,480 | ||||||
| Sealed Air Corp. | 113,121 | 2,220,565 | ||||||
| 4,331,045 | ||||||||
| Paper Products–0.40% | ||||||||
| International Paper Co. | 70,909 | 2,492,451 | ||||||
| MeadWestvaco Corp. | 68,446 | 2,072,545 | ||||||
| 4,564,996 | ||||||||
| Personal Products–0.38% | ||||||||
| Avon Products, Inc. | 117,857 | 2,202,747 | ||||||
| Estee Lauder Cos. Inc. (The)–Class A | 36,450 | 2,133,783 | ||||||
| 4,336,530 | ||||||||
| Pharmaceuticals–2.18% | ||||||||
| Abbott Laboratories | 35,899 | 2,032,242 | ||||||
| Allergan, Inc. | 23,554 | 2,110,203 | ||||||
| Bristol-Myers Squibb Co. | 57,585 | 1,852,510 | ||||||
| Eli Lilly & Co. | 48,620 | 1,907,849 | ||||||
Forest Laboratories, Inc.(b) | 67,880 | 2,207,458 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Equally-Weighted S&P 500 Fund
| Shares | Value | |||||||
Pharmaceuticals–(continued) | ||||||||
Hospira, Inc.(b) | 68,138 | $ | 2,427,076 | |||||
| Johnson & Johnson | 30,646 | 1,994,442 | ||||||
| Merck & Co., Inc. | 54,360 | 2,074,921 | ||||||
Mylan Inc.(b) | 94,376 | 2,212,173 | ||||||
| Perrigo Co. | 20,070 | 2,068,414 | ||||||
Pfizer Inc.(d) | 93,703 | 1,977,133 | ||||||
Watson Pharmaceuticals, Inc.(b) | 32,776 | 1,911,496 | ||||||
| 24,775,917 | ||||||||
| Property & Casualty Insurance–1.51% | ||||||||
| ACE Ltd. (Switzerland) | 29,525 | 2,117,238 | ||||||
| Allstate Corp. (The) | 74,529 | 2,342,446 | ||||||
Berkshire Hathaway Inc.–Class B(b) | 26,228 | 2,057,587 | ||||||
| Chubb Corp. (The) | 29,245 | 1,987,490 | ||||||
| Cincinnati Financial Corp. | 65,729 | 2,311,689 | ||||||
| Progressive Corp. (The) | 105,547 | 2,260,817 | ||||||
| Travelers Cos., Inc. (The) | 34,401 | 1,994,226 | ||||||
| XL Group PLC (Ireland) | 100,232 | 2,084,825 | ||||||
| 17,156,318 | ||||||||
| Publishing–0.58% | ||||||||
| Gannett Co., Inc. | 152,521 | 2,263,412 | ||||||
| McGraw-Hill Cos., Inc. (The) | 46,095 | 2,145,261 | ||||||
| Washington Post Co. (The)–Class B | 5,569 | 2,193,629 | ||||||
| 6,602,302 | ||||||||
| Railroads–0.54% | ||||||||
| CSX Corp. | 96,549 | 2,028,494 | ||||||
| Norfolk Southern Corp. | 28,223 | 1,944,565 | ||||||
| Union Pacific Corp. | 19,729 | 2,175,122 | ||||||
| 6,148,181 | ||||||||
| Real Estate Services–0.21% | ||||||||
CB Richard Ellis Group, Inc.–Class A(b) | 131,022 | 2,401,633 | ||||||
| Regional Banks–2.12% | ||||||||
| BB&T Corp. | 81,936 | 2,396,628 | ||||||
| Fifth Third Bancorp | 163,262 | 2,221,996 | ||||||
| First Horizon National Corp. | 265,577 | 2,496,424 | ||||||
| Huntington Bancshares Inc. | 387,148 | 2,262,880 | ||||||
| KeyCorp | 274,454 | 2,223,077 | ||||||
| M&T Bank Corp. | 27,086 | 2,210,759 | ||||||
| PNC Financial Services Group, Inc. | 35,769 | 2,128,971 | ||||||
| Regions Financial Corp. | 493,880 | 2,844,749 | ||||||
| SunTrust Banks, Inc. | 119,573 | 2,745,396 | ||||||
| Zions Bancorp. | 130,762 | 2,484,478 | ||||||
| 24,015,358 | ||||||||
| Research & Consulting Services–0.40% | ||||||||
| Dun & Bradstreet Corp. (The) | 27,844 | 2,301,307 | ||||||
| Equifax Inc. | 52,228 | 2,195,665 | ||||||
| 4,496,972 | ||||||||
| Residential REIT’s–0.55% | ||||||||
| Apartment Investment & Management Co.–Class A | 90,393 | 2,245,362 | ||||||
| AvalonBay Communities, Inc. | 15,280 | 1,981,358 | ||||||
| Equity Residential | 35,282 | 2,007,193 | ||||||
| 6,233,913 | ||||||||
| Restaurants–0.99% | ||||||||
Chipotle Mexican Grill, Inc.(b) | 6,188 | 2,414,682 | ||||||
| Darden Restaurants, Inc. | 45,114 | 2,300,363 | ||||||
| McDonald’s Corp. | 20,212 | 2,006,647 | ||||||
| Starbucks Corp. | 45,321 | 2,200,788 | ||||||
| Yum! Brands, Inc. | 34,151 | 2,262,162 | ||||||
| 11,184,642 | ||||||||
| Retail REIT’s–0.39% | ||||||||
| Kimco Realty Corp. | 122,168 | 2,245,448 | ||||||
| Simon Property Group, Inc. | 15,976 | 2,164,428 | ||||||
| 4,409,876 | ||||||||
| Semiconductor Equipment–0.81% | ||||||||
| Applied Materials, Inc. | 190,762 | 2,334,927 | ||||||
| KLA-Tencor Corp. | 42,801 | 2,071,568 | ||||||
Novellus Systems, Inc.(b) | 49,043 | 2,279,519 | ||||||
Teradyne, Inc.(b) | 149,286 | 2,451,276 | ||||||
| 9,137,290 | ||||||||
| Semiconductors–2.77% | ||||||||
Advanced Micro Devices, Inc.(b) | 384,129 | 2,823,348 | ||||||
| Altera Corp. | 57,805 | 2,222,602 | ||||||
| Analog Devices, Inc. | 57,686 | 2,261,868 | ||||||
Broadcom Corp.–Class A(b) | 68,613 | 2,548,973 | ||||||
First Solar, Inc.(b) | 61,754 | 1,994,654 | ||||||
Intel Corp.(d) | 84,829 | 2,280,204 | ||||||
| Linear Technology Corp. | 68,020 | 2,277,310 | ||||||
LSI Corp.(b) | 363,575 | 3,126,745 | ||||||
| Microchip Technology Inc. | 57,151 | 2,061,437 | ||||||
Micron Technology, Inc.(b) | 346,933 | 2,966,277 | ||||||
NVIDIA Corp.(b) | 145,860 | 2,209,779 | ||||||
| Texas Instruments Inc. | 68,684 | 2,290,611 | ||||||
| Xilinx, Inc. | 63,139 | 2,331,723 | ||||||
| 31,395,531 | ||||||||
| Soft Drinks–0.71% | ||||||||
Coca-Cola Co. (The) | 29,219 | 2,041,239 | ||||||
Coca-Cola Enterprises, Inc. | 76,437 | 2,209,029 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Equally-Weighted S&P 500 Fund
| Shares | Value | |||||||
Soft Drinks–(continued) | ||||||||
| Dr. Pepper Snapple Group, Inc. | 50,774 | $ | 1,931,951 | |||||
| PepsiCo, Inc. | 30,451 | 1,916,586 | ||||||
| 8,098,805 | ||||||||
| Specialized Consumer Services–0.18% | ||||||||
| H&R Block, Inc. | 128,293 | 2,091,176 | ||||||
| Specialized Finance–1.00% | ||||||||
| CME Group Inc. | 8,142 | 2,357,028 | ||||||
IntercontinentalExchange Inc.(b) | 16,744 | 2,310,002 | ||||||
| Moody’s Corp. | 60,446 | 2,333,820 | ||||||
NASDAQ OMX Group, Inc. (The)(b) | 82,004 | 2,159,985 | ||||||
| NYSE Euronext | 75,126 | 2,236,501 | ||||||
| 11,397,336 | ||||||||
| Specialized REIT’s–1.51% | ||||||||
| American Tower Corp. | 33,319 | 2,085,103 | ||||||
| HCP, Inc. | 50,514 | 1,995,303 | ||||||
| Health Care REIT, Inc. | 37,865 | 2,061,371 | ||||||
| Host Hotels & Resorts Inc. | 141,972 | 2,240,318 | ||||||
| Plum Creek Timber Co., Inc. | 55,902 | 2,189,122 | ||||||
| Public Storage | 15,348 | 2,057,707 | ||||||
| Ventas, Inc. | 37,250 | 2,083,020 | ||||||
| Weyerhaeuser Co. | 117,998 | 2,464,978 | ||||||
| 17,176,922 | ||||||||
| Specialty Chemicals–0.79% | ||||||||
| Ecolab Inc. | 36,011 | 2,160,660 | ||||||
| International Flavors & Fragrances Inc. | 37,975 | 2,165,715 | ||||||
| Sherwin-Williams Co. (The) | 23,281 | 2,401,435 | ||||||
| Sigma-Aldrich Corp. | 31,204 | 2,240,135 | ||||||
| 8,967,945 | ||||||||
| Specialty Stores–0.36% | ||||||||
| Staples, Inc. | 139,956 | 2,051,755 | ||||||
| Tiffany & Co. | 31,473 | 2,046,060 | ||||||
| 4,097,815 | ||||||||
| Steel–0.72% | ||||||||
| Allegheny Technologies, Inc. | 44,074 | 1,933,526 | ||||||
| Cliffs Natural Resources Inc. | 30,813 | 1,956,009 | ||||||
| Nucor Corp. | 50,540 | 2,200,006 | ||||||
| United States Steel Corp. | 76,171 | 2,073,375 | ||||||
| 8,162,916 | ||||||||
| Systems Software–1.20% | ||||||||
BMC Software, Inc.(b) | 59,408 | 2,224,235 | ||||||
| CA, Inc. | 97,941 | 2,647,345 | ||||||
Microsoft Corp.(d) | 75,790 | 2,405,575 | ||||||
| Oracle Corp. | 67,462 | 1,974,613 | ||||||
Red Hat, Inc.(b) | 41,363 | 2,045,814 | ||||||
Symantec Corp.(b) | 127,463 | 2,273,940 | ||||||
| 13,571,522 | ||||||||
| Thrifts & Mortgage Finance–0.37% | ||||||||
| Hudson City Bancorp, Inc. | 328,430 | 2,249,745 | ||||||
| People’s United Financial Inc. | 158,661 | 1,997,542 | ||||||
| 4,247,287 | ||||||||
| Tires & Rubber–0.16% | ||||||||
Goodyear Tire & Rubber Co. (The)(b) | 145,108 | 1,866,089 | ||||||
| Tobacco–0.76% | ||||||||
| Altria Group, Inc. | 67,624 | 2,035,482 | ||||||
| Lorillard, Inc. | 18,240 | 2,390,899 | ||||||
| Philip Morris International Inc. | 26,065 | 2,176,949 | ||||||
| Reynolds American Inc. | 48,464 | 2,032,096 | ||||||
| 8,635,426 | ||||||||
| Trading Companies & Distributors–0.42% | ||||||||
| Fastenal Co. | 47,575 | 2,506,251 | ||||||
| W.W. Grainger, Inc. | 11,009 | 2,286,900 | ||||||
| 4,793,151 | ||||||||
| Trucking–0.18% | ||||||||
| Ryder System, Inc. | 38,820 | 2,066,389 | ||||||
| Wireless Telecommunication Services–0.41% | ||||||||
MetroPCS Communications, Inc.(b) | 236,564 | 2,436,609 | ||||||
Sprint Nextel Corp.(b) | 875,814 | 2,163,261 | ||||||
| 4,599,870 | ||||||||
| Total Common Stocks & Other Equity Interests (Cost $572,959,885) | 1,115,641,728 | |||||||
| Money Market Funds–1.67% | ||||||||
Liquid Assets Portfolio–Institutional Class(e) | 9,449,458 | 9,449,458 | ||||||
Premier Portfolio–Institutional Class(e) | 9,449,459 | 9,449,459 | ||||||
| Total Money Market Funds (Cost $18,898,917) | 18,898,917 | |||||||
| TOTAL INVESTMENTS–99.97% (Cost $591,858,802) | 1,134,540,645 | |||||||
| OTHER ASSETS LESS LIABILITIES–0.03% | 314,956 | |||||||
| NET ASSETS–100.00% | $ | 1,134,855,601 | ||||||
Investment Abbreviations:
| REIT | – Real Estate Investment Trust |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 Invesco Equally-Weighted S&P 500 Fund
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 Fund’s Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. See Note 5. | |
| (d) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1I and Note 4. | |
| (e) | The money market fund and the Fund are affiliated by having the same investment adviser. |
By sector, based on Net Assets
as of February 29, 2012
| Financials | 16.3 | % | ||
| Consumer Discretionary | 16.2 | |||
| Information Technology | 14.2 | |||
| Industrials | 12.0 | |||
| Health Care | 10.2 | |||
| Energy | 8.5 | |||
| Consumer Staples | 7.6 | |||
| Materials | 6.2 | |||
| Utilities | 5.8 | |||
| Telecommunication Services | 1.3 | |||
| Money Market Funds Plus Other Assets Less Liabilities | 1.7 | |||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 Invesco Equally-Weighted S&P 500 Fund
Statement of Assets and Liabilities
February 29, 2012
(Unaudited)
| Assets: | ||||
| Investments, at value (Cost $571,102,279) | $ | 1,113,104,785 | ||
| Investments in affiliates (Cost $20,756,523) | 21,435,860 | |||
| Total investments, at value (Cost $591,858,802) | 1,134,540,645 | |||
| Receivable for: | ||||
| Fund shares sold | 1,643,413 | |||
| Dividends | 1,952,275 | |||
| Investment for trustee deferred compensation and retirement plans | 10,501 | |||
| Other assets | 111,935 | |||
| Total assets | 1,138,258,769 | |||
| Liabilities: | ||||
| Payable for: | ||||
| Fund shares reacquired | 2,335,197 | |||
| Variation margin | 104,170 | |||
| Accrued fees to affiliates | 715,057 | |||
| Accrued other operating expenses | 136,839 | |||
| Trustee deferred compensation and retirement plans | 111,905 | |||
| Total liabilities | 3,403,168 | |||
| Net assets applicable to shares outstanding | $ | 1,134,855,601 | ||
| Net assets consist of: | ||||
| Shares of beneficial interest | $ | 625,482,236 | ||
| Undistributed net investment income | 2,213,269 | |||
| Undistributed net realized gain (loss) | (35,932,790 | ) | ||
| Unrealized appreciation | 543,092,886 | |||
| $ | 1,134,855,601 | |||
| Net Assets: | ||||
| Class A | $ | 733,146,862 | ||
| Class B | $ | 62,281,226 | ||
| Class C | $ | 78,119,204 | ||
| Class R | $ | 4,796,061 | ||
| Class Y | $ | 256,512,248 | ||
| Shares outstanding, $0.01 par value per share, with an unlimited number of shares authorized: | ||||
| Class A | 22,211,166 | |||
| Class B | 1,883,006 | |||
| Class C | 2,435,890 | |||
| Class R | 145,530 | |||
| Class Y | 7,724,132 | |||
| Class A: | ||||
| Net asset value per share | $ | 33.01 | ||
| Maximum offering price per share | ||||
| (Net asset value of $33.01 divided by 94.50%) | $ | 34.93 | ||
| Class B: | ||||
| Net asset value and offering price per share | $ | 33.08 | ||
| Class C: | ||||
| Net asset value and offering price per share | $ | 32.07 | ||
| Class R: | ||||
| Net asset value and offering price per share | $ | 32.96 | ||
| Class Y: | ||||
| Net asset value and offering price per share | $ | 33.21 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 Invesco Equally-Weighted S&P 500 Fund
Statement of Operations
For the six months ended February 29, 2012
(Unaudited)
| Investment income: | ||||
| Dividends | $ | 9,991,793 | ||
| Dividends from affiliates | 33,175 | |||
| Total investment income | 10,024,968 | |||
| Expenses: | ||||
| Advisory fees | 601,284 | |||
| Administrative services fees | 135,137 | |||
| Custodian fees | 33,595 | |||
| Distribution fees: | ||||
| Class A | 803,313 | |||
| Class B | 342,053 | |||
| Class C | 348,857 | |||
| Class R | 5,504 | |||
| Transfer agent fees | 673,382 | |||
| Trustees’ and officers’ fees and benefits | 40,487 | |||
| Other | 216,645 | |||
| Total expenses | 3,200,257 | |||
| Less: Fees waived and expense offset arrangement(s) | (9,106 | ) | ||
| Net expenses | 3,191,151 | |||
| Net investment income | 6,833,817 | |||
| Realized and unrealized gain (loss) from: | ||||
| Net realized gain from: | ||||
| Investment securities | 20,520,132 | |||
| Futures contracts | 2,504,689 | |||
| 23,024,821 | ||||
| Change in net unrealized appreciation (depreciation) of: | ||||
| Investment securities | 93,294,483 | |||
| Futures contracts | (260,854 | ) | ||
| 93,033,629 | ||||
| Net realized and unrealized gain | 116,058,450 | |||
| Net increase in net assets resulting from operations | $ | 122,892,267 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 Invesco Equally-Weighted S&P 500 Fund
Statement of Changes in Net Assets
For the six months ended February 29, 2012 and the year ended August 31, 2011
(Unaudited)
| February 29, | August 31, | |||||||
| 2012 | 2011 | |||||||
| Operations: | ||||||||
| Net investment income | $ | 6,833,817 | $ | 12,202,732 | ||||
| Net realized gain | 23,024,821 | 74,515,602 | ||||||
| Change in net unrealized appreciation | 93,033,629 | 88,290,896 | ||||||
| Net increase in net assets resulting from operations | 122,892,267 | 175,009,230 | ||||||
| Distributions to shareholders from net investment income: | ||||||||
| Class A | (11,216,679 | ) | (8,801,770 | ) | ||||
| Class B | (345,338 | ) | (420,658 | ) | ||||
| Class C | (365,463 | ) | (250,401 | ) | ||||
| Class R | (19,599 | ) | (1,842 | ) | ||||
| Class Y | (4,510,536 | ) | (2,834,438 | ) | ||||
| Total distributions from net investment income | (16,457,615 | ) | (12,309,109 | ) | ||||
| Share transactions–net: | ||||||||
| Class A | 25,723,740 | (18,582,780 | ) | |||||
| Class B | (22,491,323 | ) | (55,334,686 | ) | ||||
| Class C | 2,469,564 | 1,679,975 | ||||||
| Class R | 3,278,867 | 995,638 | ||||||
| Class Y | 55,239,389 | (6,087,350 | ) | |||||
| Net increase (decrease) in net assets resulting from share transactions | 64,220,237 | (77,329,203 | ) | |||||
| Net increase in net assets | 170,654,889 | 85,370,918 | ||||||
| Net assets: | ||||||||
| Beginning of period | 964,200,712 | 878,829,794 | ||||||
| End of period (includes undistributed net investment income of $2,213,269 and $11,837,067, respectively) | $ | 1,134,855,601 | $ | 964,200,712 | ||||
Notes to Financial Statements
February 29, 2012
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco Equally-Weighted S&P 500 Fund (the “Fund”), is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (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 twelve 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 to achieve a high level of total return on its assets through a combination of capital appreciation and current income.
The Fund currently consists of five different classes of shares: Class A, Class B, Class C, Class R and Class Y. 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 and Class Y 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. 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. 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 conversion date will be subject to a CDSC.
16 Invesco Equally-Weighted S&P 500 Fund
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 bonds) 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 ask 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 ask prices. For purposes of determining net asset value 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 bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. | ||
| Foreign securities (including foreign exchange contracts) 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 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 trade is not the current value as of the close of the NYSE. Foreign securities 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 are 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/ask 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. | ||
| 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. | ||
| B. | 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 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 Statement of Changes in Net Assets, or the net investment income per share and 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. | ||
| C. | 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. |
17 Invesco Equally-Weighted S&P 500 Fund
| D. | Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. | |
| E. | Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of 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 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. | ||
| F. | Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets. | |
| G. | 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. | |
| H. | 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 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. | |
| I. | Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities. | |
| J. | Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. |
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 pays 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 $2 billion | 0 | .12% | ||
| Over $2 billion | 0 | .10% | ||
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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may 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 Sub-Adviser(s).
The Adviser has contractually agreed, through June 30, 2012, to waive advisory fees and/or reimburse expenses 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 and Class Y shares to 0.75%, 1.50%, 1.50%, 1.00% and 0.50% of average daily net assets, respectively. 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 net 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 the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.
18 Invesco Equally-Weighted S&P 500 Fund
Further, the Adviser has contractually agreed, through at least June 30, 2012, 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 six months ended February 29, 2012, the Adviser waived advisory fees of $8,825.
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 six months ended February 29, 2012, 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 are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 29, 2012, the expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.
Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”), an affiliate of the Adviser. The Fund has adopted a Plan of Distribution (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that the Fund will reimburse IDI for distribution related expenses that IDI incurs up to a maximum of the following annual rates: (1) Class A — up to 0.25% of the average daily net assets of Class A shares; (2) Class B — up to 1.00% of the average daily net assets of Class B shares; (3) Class C — up to 1.00% of the average daily net assets of Class C shares; and (4) Class R — up to 0.50% of the average daily net assets of Class R shares.
In the case of Class B shares, provided that the Plan continues in effect, any cumulative expenses incurred by IDI, but not yet reimbursed to IDI, may be recovered through the payment of future distribution fees from the Fund pursuant to the Plan and contingent deferred sales charges paid by investors upon redemption of Class B shares.
For the six months ended February 29, 2012, expenses incurred under these agreements 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 six months ended February 29, 2012, IDI advised the Fund that IDI retained $9,864 in front-end sales commissions from the sale of Class A shares and $13,991 and $2,437 from Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.
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 February 29, 2012. 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.
During the six months ended February 29, 2012, there were no significant transfers between investment levels.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Equity Securities | $ | 1,134,540,645 | $ | — | $ | — | $ | 1,134,540,645 | ||||||||
| Futures* | 411,043 | — | — | 411,043 | ||||||||||||
| Total Investments | $ | 1,134,951,688 | $ | — | $ | — | $ | 1,134,951,688 | ||||||||
| * | Unrealized appreciation. |
19 Invesco Equally-Weighted S&P 500 Fund
NOTE 4—Derivative Investments
Value of Derivative Instruments at Period-End
The table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of February 29, 2012:
| Value | ||||||||
| Risk Exposure/Derivative Type | Assets | Liabilities | ||||||
| Interest rate risk | ||||||||
Futures contracts(a) | $ | 411,043 | $ | — | ||||
| (a) | Includes cumulative appreciation of futures contracts. Only current day’s variation margin receivable (payable) is reported within the Statement of Assets and Liabilities. |
Effect of Derivative Instruments for the six months ended February 29, 2012
The table below summarizes the gains (losses) on derivative instruments, detailed by primary risk exposure, recognized in earnings during the period:
| Location of Gain (Loss) on | ||||
| Statement of Operations | ||||
| Futures* | ||||
| Realized Gain (Loss) | ||||
| Equity Risk | $ | 2,504,689 | ||
| Change in Unrealized Appreciation (Depreciation) | ||||
| Equity risk | (260,854 | ) | ||
| Total | $ | 2,243,835 | ||
| * | The average notional value of futures outstanding during the period was $15,569,663. |
| Open Futures Contracts | ||||||||||||||||
| Number of | Expiration | Notional | Unrealized | |||||||||||||
| Long Contracts | Contracts | Month | Value | Appreciation | ||||||||||||
S&P 500 E-Mini | 301 | March-2012 | $ | 20,534,220 | $ | 411,043 | ||||||||||
NOTE 5—Investments in Affiliates
The Fund’s Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. The following is a summary of the transactions in and earnings from investments in Invesco Ltd. for the six months ended February 29, 2012.
| Change in | ||||||||||||||||||||||||||||
| Value | Purchases | Proceeds | Unrealized | Realized | Value | Dividend | ||||||||||||||||||||||
| 08/31/11 | at Cost | from Sales | Appreciation | Gain (Loss) | 02/29/12 | Income | ||||||||||||||||||||||
| Invesco, Ltd. | $ | 1,615,707 | $ | 389,164 | $ | (128,869 | ) | $ | 706,353 | $ | (45,412 | ) | $ | 2,536,943 | $ | 25,111 | ||||||||||||
NOTE 6—Expense Offset Arrangement(s)
The expense offset arrangements are comprised of custodian credits which result from periodic overnight cash balances at the custodian. For the six months ended February 29, 2012, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $281.
NOTE 7—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 are eligible to participate in a retirement plan that provides 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.
During the six months ended February 29, 2012, the Fund paid legal fees of $578 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.
NOTE 8—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
20 Invesco Equally-Weighted S&P 500 Fund
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 9—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
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. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2011, which expires as follows:
| Capital Loss Carryforward* | ||||
| Expiration | Total | |||
| August 31, 2017 | $ | 23,943,880 | ||
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. |
NOTE 10—Investment Securities
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 six months ended February 29, 2012 was $180,826,433 and $134,115,824, respectively. Cost of investments 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 Investment Securities on a Tax Basis | ||||
| Aggregate unrealized appreciation of investment securities | $ | 519,406,044 | ||
| Aggregate unrealized (depreciation) of investment securities | (10,746,566 | ) | ||
| Net unrealized appreciation of investment securities | $ | 508,659,478 | ||
| Cost of investments for tax purposes is $625,881,167. | ||||
21 Invesco Equally-Weighted S&P 500 Fund
NOTE 11—Share Information
| Summary of Share Activity | ||||||||||||||||
| Six months ended | Year ended | |||||||||||||||
| February 29, 2012(a) | August 31, 2011 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Sold: | ||||||||||||||||
| Class A | 2,533,875 | $ | 77,353,232 | 3,133,592 | $ | 98,814,686 | ||||||||||
| Class B | 23,824 | 729,041 | 127,382 | 3,844,372 | ||||||||||||
| Class C | 294,431 | 8,698,778 | 634,600 | 19,144,631 | ||||||||||||
| Class R | 114,539 | 3,523,776 | 35,762 | 1,125,853 | ||||||||||||
| Class Y | 2,615,309 | 80,003,245 | 2,142,366 | 68,697,799 | ||||||||||||
| Issued as reinvestment of dividends: | ||||||||||||||||
| Class A | 326,598 | 9,824,076 | 257,336 | 7,789,564 | ||||||||||||
| Class B | 10,380 | 313,479 | 12,636 | 382,126 | ||||||||||||
| Class C | 11,418 | 334,337 | 7,811 | 229,099 | ||||||||||||
| Class R | 648 | 19,471 | 52 | 1,575 | ||||||||||||
| Class Y | 133,786 | 4,047,035 | 83,013 | 2,528,575 | ||||||||||||
| Automatic conversion of Class B shares to Class A shares: | ||||||||||||||||
| Class A | 539,227 | 16,696,456 | 1,120,505 | 34,961,343 | ||||||||||||
| Class B | (540,131 | ) | (16,696,456 | ) | (1,126,176 | ) | (34,961,343 | ) | ||||||||
| Reacquired: | ||||||||||||||||
| Class A | (2,584,224 | ) | (78,150,024 | ) | (5,164,472 | ) | (160,148,373 | ) | ||||||||
| Class B | (226,946 | ) | (6,837,387 | ) | (804,551 | ) | (24,599,841 | ) | ||||||||
| Class C | (223,249 | ) | (6,563,551 | ) | (586,530 | ) | (17,693,755 | ) | ||||||||
| Class R | (9,169 | ) | (264,380 | ) | (4,437 | ) | (131,790 | ) | ||||||||
| Class Y | (933,795 | ) | (28,810,891 | ) | (2,424,226 | ) | (77,313,724 | ) | ||||||||
| Net increase (decrease) in share activity | 2,086,521 | $ | 64,220,237 | (2,555,337 | ) | $ | (77,329,203 | ) | ||||||||
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 70% 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 Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
22 Invesco Equally-Weighted S&P 500 Fund
NOTE 12—Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Ratio of | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net gains | expenses | expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (losses) on | to average | to average net | Ratio of net | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net asset | securities | Dividends | Distributions | net assets | assets without | investment | ||||||||||||||||||||||||||||||||||||||||||||||||||
| value, | Net | (both | Total from | from net | from net | Net asset | Net assets, | with fee waivers | fee waivers | income | ||||||||||||||||||||||||||||||||||||||||||||||
| beginning | investment | realized and | investment | investment | realized | Total | value, end | Total | end of period | and/or expenses | and/or expenses | to average | Portfolio | |||||||||||||||||||||||||||||||||||||||||||
| of period | income(a) | unrealized) | operations | income | gains | distributions | of period | return(b) | (000s omitted) | absorbed | absorbed | net assets | turnover(c) | |||||||||||||||||||||||||||||||||||||||||||
| Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | $ | 29.89 | $ | 0.22 | $ | 3.42 | $ | 3.64 | $ | (0.52 | ) | $ | — | $ | (0.52 | ) | $ | 33.01 | 12.33 | % | $ | 733,147 | 0.58 | %(d) | 0.58 | %(d) | 1.42 | %(d) | 13 | % | ||||||||||||||||||||||||||
| Year ended 08/31/11 | 25.26 | 0.39 | 4.65 | 5.04 | (0.41 | ) | — | (0.41 | ) | 29.89 | 19.91 | 639,478 | 0.56 | 0.56 | 1.26 | 22 | ||||||||||||||||||||||||||||||||||||||||
| Two months 08/31/10 | 24.74 | 0.08 | 0.44 | 0.52 | — | — | — | 25.26 | 2.10 | 556,910 | 0.65 | (e) | 0.65 | (e) | 1.81 | (e) | 0 | |||||||||||||||||||||||||||||||||||||||
| Year ended 06/30/10 | 20.14 | 0.30 | 4.56 | 4.86 | (0.26 | ) | — | (0.26 | ) | 24.74 | 24.08 | 552,673 | 0.64 | 0.64 | 1.17 | 24 | ||||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 33.39 | 0.37 | (9.39 | ) | (9.02 | ) | (0.46 | ) | (3.77 | ) | (4.23 | ) | 20.14 | (24.61 | ) | 486,937 | 0.75 | (f) | 0.75 | (f) | 1.62 | (f) | 39 | |||||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 45.39 | 0.48 | (7.81 | ) | (7.33 | ) | (0.48 | ) | (4.19 | ) | (4.67 | ) | 33.39 | (17.31 | ) | 799,622 | 0.62 | (f) | 0.62 | (f) | 1.22 | (f) | 25 | |||||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 40.04 | 0.45 | 7.54 | 7.99 | (0.40 | ) | (2.24 | ) | (2.64 | ) | 45.39 | 20.44 | 1,070,820 | 0.62 | (f) | 0.62 | (f) | 1.05 | (f) | 14 | ||||||||||||||||||||||||||||||||||||
| Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 29.70 | 0.10 | 3.43 | 3.53 | (0.15 | ) | — | (0.15 | ) | 33.08 | 11.94 | 62,281 | 1.34 | (d) | 1.34 | (d) | 0.66 | (d) | 13 | |||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 25.05 | 0.16 | 4.60 | 4.76 | (0.11 | ) | — | (0.11 | ) | 29.70 | 18.98 | 77,702 | 1.31 | 1.31 | 0.51 | 22 | ||||||||||||||||||||||||||||||||||||||||
| Two months 08/31/10 | 24.56 | 0.05 | 0.44 | 0.49 | — | — | — | 25.05 | 2.00 | 110,367 | 1.40 | (e) | 1.40 | (e) | 1.06 | (e) | 0 | |||||||||||||||||||||||||||||||||||||||
| Year ended 06/30/10 | 20.08 | 0.10 | 4.54 | 4.64 | (0.16 | ) | — | (0.16 | ) | 24.56 | 23.09 | 118,559 | 1.39 | 1.39 | 0.42 | 24 | ||||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 33.02 | 0.20 | (9.22 | ) | (9.02 | ) | (0.15 | ) | (3.77 | ) | (3.92 | ) | 20.08 | (25.14 | ) | 155,328 | 1.50 | (f) | 1.50 | (f) | 0.87 | (f) | 39 | |||||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 44.85 | 0.18 | (7.74 | ) | (7.56 | ) | (0.08 | ) | (4.19 | ) | (4.27 | ) | 33.02 | (17.96 | ) | 352,174 | 1.37 | (f) | 1.37 | (f) | 0.47 | (f) | 25 | |||||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 39.57 | 0.12 | 7.45 | 7.57 | (0.05 | ) | (2.24 | ) | (2.29 | ) | 44.85 | 19.54 | 630,489 | 1.38 | (f) | 1.38 | (f) | 0.29 | (f) | 14 | ||||||||||||||||||||||||||||||||||||
| Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 28.81 | 0.09 | 3.32 | 3.41 | (0.15 | ) | — | (0.15 | ) | 32.07 | 11.90 | 78,119 | 1.34 | (d) | 1.34 | (d) | 0.66 | (d) | 13 | |||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 24.29 | 0.16 | 4.47 | 4.63 | (0.11 | ) | — | (0.11 | ) | 28.81 | 19.04 | 67,788 | 1.31 | 1.31 | 0.51 | 22 | ||||||||||||||||||||||||||||||||||||||||
| Two months 08/31/10 | 23.82 | 0.04 | 0.43 | 0.47 | — | — | — | 24.29 | 1.97 | 55,797 | 1.40 | (e) | 1.40 | (e) | 1.06 | (e) | 0 | |||||||||||||||||||||||||||||||||||||||
| Year ended 06/30/10 | 19.49 | 0.10 | 4.42 | 4.52 | (0.19 | ) | — | (0.19 | ) | 23.82 | 23.15 | 56,462 | 1.39 | 1.39 | 0.42 | 24 | ||||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 32.33 | 0.19 | (9.06 | ) | (8.87 | ) | (0.20 | ) | (3.77 | ) | (3.97 | ) | 19.49 | (25.17 | ) | 51,534 | 1.50 | (f) | 1.50 | (f) | 0.87 | (f) | 39 | |||||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 44.08 | 0.19 | (7.58 | ) | (7.39 | ) | (0.17 | ) | (4.19 | ) | (4.36 | ) | 32.33 | (17.89 | ) | 88,658 | 1.35 | (f) | 1.35 | (f) | 0.49 | (f) | 25 | |||||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 38.97 | 0.14 | 7.33 | 7.47 | (0.12 | ) | (2.24 | ) | (2.36 | ) | 44.08 | 19.53 | 124,080 | 1.34 | (f) | 1.34 | (f) | 0.33 | (f) | 14 | ||||||||||||||||||||||||||||||||||||
| Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 29.77 | 0.25 | 3.56 | 3.81 | (0.62 | ) | — | (0.62 | ) | 32.96 | 12.17 | 4,796 | 0.84 | (d) | 0.84 | (d) | 1.16 | (d) | 13 | |||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 25.14 | 0.31 | 4.63 | 4.94 | (0.31 | ) | — | (0.31 | ) | 29.77 | 19.62 | 1,176 | 0.81 | 0.81 | 1.01 | 22 | ||||||||||||||||||||||||||||||||||||||||
| Two months 08/31/10 | 24.63 | 0.07 | 0.44 | 0.51 | — | — | — | 25.14 | 2.07 | 205 | 0.90 | (e) | 0.90 | (e) | 1.56 | (e) | 0 | |||||||||||||||||||||||||||||||||||||||
| Year ended 06/30/10 | 20.10 | 0.23 | 4.56 | 4.79 | (0.26 | ) | — | (0.26 | ) | 24.63 | 23.78 | 208 | 0.89 | 0.89 | 0.92 | 24 | ||||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 33.36 | 0.30 | (9.35 | ) | (9.05 | ) | (0.44 | ) | (3.77 | ) | (4.21 | ) | 20.10 | (24.78 | ) | 73 | 1.00 | (f) | 1.00 | (f) | 1.37 | (f) | 39 | |||||||||||||||||||||||||||||||||
| Year ended 08/31/08(g) | 34.26 | 0.09 | (0.99 | ) | (0.90 | ) | — | — | — | 33.36 | (2.63 | ) | 97 | 0.86 | (e)(f) | 0.86 | (e)(f) | 0.98 | (e)(f) | 25 | ||||||||||||||||||||||||||||||||||||
| Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 30.13 | 0.26 | 3.22 | 3.48 | (0.40 | ) | — | (0.40 | ) | 33.21 | 12.49 | 256,512 | 0.34 | (d) | 0.34 | (d) | 1.66 | (d) | 13 | |||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 25.47 | 0.47 | 4.68 | 5.15 | (0.49 | ) | — | (0.49 | ) | 30.13 | 20.19 | 178,056 | 0.31 | 0.31 | 1.51 | 22 | ||||||||||||||||||||||||||||||||||||||||
| Two months 08/31/10 | 24.94 | 0.09 | 0.44 | 0.53 | — | — | — | 25.47 | 2.12 | 155,551 | 0.40 | (e) | 0.40 | (e) | 2.06 | (e) | 0 | |||||||||||||||||||||||||||||||||||||||
| Year ended 06/30/10 | 20.27 | 0.36 | 4.59 | 4.95 | (0.28 | ) | — | (0.28 | ) | 24.94 | 24.39 | 151,901 | 0.39 | 0.39 | 1.42 | 24 | ||||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 33.62 | 0.43 | (9.46 | ) | (9.03 | ) | (0.55 | ) | (3.77 | ) | (4.32 | ) | 20.27 | (24.41 | ) | 148,051 | 0.50 | (f) | 0.50 | (f) | 1.87 | (f) | 39 | |||||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 45.68 | 0.59 | (7.87 | ) | (7.28 | ) | (0.59 | ) | (4.19 | ) | (4.78 | ) | 33.62 | (17.11 | ) | 351,338 | 0.37 | (f) | 0.37 | (f) | 1.47 | (f) | 25 | |||||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 40.28 | 0.56 | 7.58 | 8.14 | (0.50 | ) | (2.24 | ) | (2.74 | ) | 45.68 | 20.72 | 537,295 | 0.38 | (f) | 0.38 | (f) | 1.29 | (f) | 14 | ||||||||||||||||||||||||||||||||||||
| (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. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns. | |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. | |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $659,614, $68,787, $70,155, $2,214 and $206,877 for Class A, Class B, Class C, Class R and Class Y, shares, respectively. | |
| (e) | Annualized. | |
| (f) | The ratios reflect the rebate of certain Fund expenses in connection with investments in a Morgan Stanley affiliate during the period. The effect of the rebate on the ratios is less than 0.005%. | |
| (g) | Commencement date of March 31, 2008. |
23 Invesco Equally-Weighted S&P 500 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, and redemption fees, 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 September 1, 2011 through February 29, 2012.
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, contingent deferred sales charges on redemptions, and redemption fees, 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.
| HYPOTHETICAL | ||||||||||||||||||||||||||||||
| (5% annual return before | ||||||||||||||||||||||||||||||
| ACTUAL | expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Ending | Expenses | Annualized | |||||||||||||||||||||||||
| Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||||||||||||||||||||
| Class | (09/01/11) | (02/29/12)1 | Period2 | (02/29/12) | Period2 | Ratio | ||||||||||||||||||||||||
| A | $ | 1,000.00 | $ | 1,123.30 | $ | 3.06 | $ | 1,021.98 | $ | 2.92 | 0.58 | % | ||||||||||||||||||
| B | 1,000.00 | 1,119.40 | 7.06 | 1,018.20 | 6.72 | 1.34 | ||||||||||||||||||||||||
| C | 1,000.00 | 1,119.40 | 7.06 | 1,018.20 | 6.72 | 1.34 | ||||||||||||||||||||||||
| R | 1,000.00 | 1,121.70 | 4.43 | 1,020.69 | 4.22 | 0.84 | ||||||||||||||||||||||||
| Y | 1,000.00 | 1,124.90 | 1.80 | 1,023.17 | 1.71 | 0.34 | ||||||||||||||||||||||||
| 1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2011 through February 29, 2012, 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 182/366 to reflect the most recent fiscal half year. |
24 Invesco Equally-Weighted S&P 500 Fund
| Go Paperless with eDelivery Visit invesco.com/edelivery to receive quarterly statements, tax forms, fund reports and prospectuses with a service that’s all about eeees: – Go green by reducing the number of trees used to produce paper. – economical. Help reduce your fund’s printing and delivery expenses and put more capital back in your fund’s returns. – efficient. Stop waiting for regular mail. Your documents will be sent via email as soon as they’re available. – easy. Download, save and print files using your home computer with a few clicks of your mouse. This service is provided by Invesco Investment Services, Inc. |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Invesco privacy policy
You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.
Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.
Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.
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 811-09913 and 333-36074.
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 12 months ended June 30, 2011, 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 U.S. 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.
| MS-EWSP-SAR-1 | Invesco Distributors, Inc. |
Invesco Floating Rate Fund
Semiannual Report to Shareholders § February 29, 2012
Semiannual Report to Shareholders § February 29, 2012
Nasdaq:
A: AFRAX § C: AFRCX § R: AFRRX § Y: AFRYX § Institutional: AFRIX
A: AFRAX § C: AFRCX § R: AFRRX § Y: AFRYX § Institutional: AFRIX
| 2 | Fund Performance | |
| 4 | Letters to Shareholders | |
| 5 | Schedule of Investments | |
| 23 | Financial Statements | |
| 26 | Notes to Financial Statements | |
| 33 | Financial Highlights | |
| 34 | Fund Expenses | |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
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 | ||
Fund Performance
Performance summary
Fund vs. Indexes
Cumulative total returns, 8/31/11 to 2/29/12, 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 | 6.65 | % | ||
| Class C Shares | 6.55 | |||
| Class R Shares | 6.65 | |||
| Class Y Shares | 6.93 | |||
| Institutional Class Shares | 6.98 | |||
Barclays U.S. Aggregate Index▼ (Broad Market Index) | 2.73 | |||
CS Leveraged Loan Indexn (Style-Specific Index) | 5.41 | |||
S&P/LSTA Leveraged Loan Indext (Former Style-Specific Index)* | 6.42 | |||
Lipper Loan Participation Funds Category Average▼ (Peer Group) | 6.33 | |||
| Source(s): ▼Lipper Inc.; nInvesco, Bloomberg L.P.; tInvesco, Standard & Poor’s | ||
| * | The Fund has elected to use the Credit Suisse Leveraged Loan Index as its style-specific benchmark because it reflects the Fund’s investment style more appropriately than the S&P/LSTA Leveraged Loan Index. | |
The Barclays U.S. Aggregate Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market.
The CS Leveraged Loan Index represents tradable, senior-secured, US-dollar-denominated non-investment-grade loans.
The S&P/LSTA Leveraged Loan Index is a weekly total return index that tracks the current outstanding balance and spread over Libor for fully funded term loans.
The Lipper Loan Participation Funds Category Average represents an average of all of the funds in the Lipper Loan Participation Funds category.
The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
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.
2 Invesco Floating Rate Fund
Average Annual Total Returns
As of 2/29/12, including maximum applicable sales charges
| Class A Shares | |||||||
| Inception (5/1/97) | 3.90 | % | |||||
| 10 | Years | 3.74 | |||||
| 5 | Years | 1.81 | |||||
| 1 | Year | -0.31 | |||||
| Class C Shares | |||||||
| Inception (3/31/00) | 3.20 | % | |||||
| 10 | Years | 3.58 | |||||
| 5 | Years | 1.79 | |||||
| 1 | Year | 0.86 | |||||
| Class R Shares | |||||||
| 10 | Years | 3.87 | % | ||||
| 5 | Years | 2.13 | |||||
| 1 | Year | 1.98 | |||||
| Class Y Shares | |||||||
| 10 | Years | 4.07 | % | ||||
| 5 | Years | 2.45 | |||||
| 1 | Year | 2.48 | |||||
| Institutional Class Shares | |||||||
| 10 | Years | 4.22 | % | ||||
| 5 | Years | 2.69 | |||||
| 1 | Year | 2.70 | |||||
On April 13, 2006, the Fund reorganized from a Closed-End Fund to an Open-End Fund. Performance shown for Class A shares prior to that date is that of the Closed-End Fund’s Class B shares and includes the management and 12b-1 fees applicable to B shares. The Closed-End Fund’s B-share performance reflects any applicable fee waivers or expense reimbursements.
On April 13, 2006, the Fund reorganized from a Closed-End Fund to an Open-End Fund. Performance shown for Class C shares prior to that date is that of the Closed-End Fund’s Class C shares and includes the management and 12b-1 fees applicable to C shares. The Closed-End Fund’s C-share performance reflects any applicable fee waivers or expense reimbursements.
Class R shares incepted on April 13, 2006. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.
Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A shares and
Average Annual Total Returns
As of 12/31/11, the most recent calendar quarter-end, including maximum applicable sales charges
| Class A Shares | |||||||
| Inception (5/1/97) | 3.74 | % | |||||
| 10 | Years | 3.55 | |||||
| 5 | Years | 1.52 | |||||
| 1 | Year | -1.00 | |||||
| Class C Shares | |||||||
| Inception (3/31/00) | 3.00 | % | |||||
| 10 | Years | 3.39 | |||||
| 5 | Years | 1.51 | |||||
| 1 | Year | 0.07 | |||||
| Class R Shares | |||||||
| 10 | Years | 3.69 | % | ||||
| 5 | Years | 1.85 | |||||
| 1 | Year | 1.31 | |||||
| Class Y Shares | |||||||
| 10 | Years | 3.88 | % | ||||
| 5 | Years | 2.16 | |||||
| 1 | Year | 1.80 | |||||
| Institutional Class Shares | |||||||
| 10 | Years | 4.01 | % | ||||
| 5 | Years | 2.38 | |||||
| 1 | Year | 1.88 | |||||
includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.
Institutional Class shares incepted on April 13, 2006. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.
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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. 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 C, Class R, Class Y and Institutional Class shares was 1.00%, 1.50%, 1.25%, 0.75% and 0.69%, 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 2.50% sales charge and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y and Institutional Class 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.
Had the adviser not waived fees and/ or reimbursed expenses in the past, performance would have been lower.
3 Invesco Floating Rate Fund
Letters to Shareholders
Bruce Crockett
Dear Fellow Shareholders:
Throughout 2011, we experienced volatile, challenging markets that presented both opportunities and risks for investors. Based on everything I’ve read, this year could potentially be just as interesting, with continued economic uncertainty and market volatility.
With this in mind, you’ll want to stay informed regarding the markets and keep up to date with news that affects your investment portfolio. Invesco’s website, invesco.com/us, provides a wealth of information about your investments and news regarding global markets.
Regardless of economic conditions and market trends, the Invesco Funds Board of Trustees remains committed to putting your interests first. Throughout 2011, we worked to manage costs, and this remains a continuing focus of your Board. We will continue to oversee the funds with the strong sense of responsibility for your money and your continued trust that we’ve always maintained.
I would like to close by thanking Bob Baker for his distinguished 30-year service with the Invesco Funds Board and his unflagging commitment to our funds’ shareholders. As always, I encourage you to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving you in 2012.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Independent Chair
Invesco Funds Board of Trustees
Philip Taylor
Dear Shareholders:
This report provides important information about your Fund, including its short- and long-term performance. Also, this report includes a listing of investments held by your Fund at the close of the reporting period.
Investors are likely to confront both opportunities and challenges in 2012. As we saw in 2011, market sentiment can change suddenly and dramatically – and certainly without advance notice – depending on economic developments and world events. Similarly, your own situation, needs and goals can change, requiring adjustments in your financial strategy.
In addition to meeting with your financial adviser regularly to discuss your individual situation, you also may find it helpful to stay abreast of market trends and developments. Doing so may provide reassurance in times of economic uncertainty and market volatility such as we saw last year and may see again this year.
Invesco can help you stay informed about your investments and market trends. On our website, invesco.com/us, we provide timely market updates and commentary from many of our portfolio managers and other investment professionals. Also on our website, you can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer at invesco.com/us.
If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.
| All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us. |
Sincerely,
Philip Taylor
Senior Managing Director, Invesco Ltd.
Senior Managing Director, Invesco Ltd.
4 Invesco Floating Rate Fund
Schedule of Investments(a)
February 29, 2012
(Unaudited)
| Interest | Maturity | Principal | ||||||||||||||
| Rate | Date | Amount | Value | |||||||||||||
| Senior Secured Floating Rate Interest Loans–91.96%(b)(c) | ||||||||||||||||
| Advertising–0.36% | ||||||||||||||||
| Advantage Sales & Marketing Inc., Second Lien Term Loan | 9.25 | % | 06/18/18 | $ | 318,170 | $ | 316,382 | |||||||||
| Affinion Group, Inc., Term Loan B | 5.00 | % | 10/10/16 | 2,696,561 | 2,543,207 | |||||||||||
| Lamar Media Corp., Term Loan B | 4.00 | % | 12/30/16 | 129,085 | 129,344 | |||||||||||
| 2,988,933 | ||||||||||||||||
| Aerospace & Defense–2.01% | ||||||||||||||||
| Aero Technology Supply | ||||||||||||||||
| Revolver Loan | 11.25 | % | 03/12/13 | 497,455 | 440,247 | |||||||||||
| Term Loan | 10.75 | % | 03/12/15 | 1,374,572 | 1,106,531 | |||||||||||
| Term Loan | 11.25 | % | 03/12/13 | 565,174 | 495,940 | |||||||||||
| ARINC Inc., Second Lien Term Loan | 6.25 | % | 10/25/15 | 1,142,269 | 1,125,135 | |||||||||||
| Dubai Aerospace Enterprise | ||||||||||||||||
| Term Loan B1 | 5.56 | % | 07/31/14 | 611,142 | 604,841 | |||||||||||
| Term Loan B2 | 5.41-5.56 | % | 07/31/14 | 585,008 | 578,977 | |||||||||||
| DynCorp International LLC, Term Loan | 6.25 | % | 07/07/16 | 2,513,416 | 2,513,806 | |||||||||||
| Hawker Beechcraft Corp., Term Loan | 2.58 | % | 03/26/14 | 964,893 | 721,561 | |||||||||||
| IAP Worldwide Services, Inc., Term Loan B | 9.25 | % | 12/30/12 | 3,274,459 | 2,992,037 | |||||||||||
| Sequa Corp. | ||||||||||||||||
| Term Loan B | 3.76-3.84 | % | 12/03/14 | 3,614,686 | 3,592,600 | |||||||||||
| Tranche 1 Term Loan | 6.25 | % | 12/03/14 | 979,877 | 988,040 | |||||||||||
| SI Organization, Inc., Term Loan B | 4.50 | % | 11/22/16 | 663,150 | 642,148 | |||||||||||
| Wyle Laboratories, Inc., Term Loan | 5.75 | % | 03/26/17 | 930,352 | 921,049 | |||||||||||
| 16,722,912 | ||||||||||||||||
| Air Freight & Logistics–0.17% | ||||||||||||||||
| CEVA Group PLC, Term Loan B | 0.48-5.55 | % | 08/31/16 | 1,476,033 | 1,377,330 | |||||||||||
| Airlines–0.51% | ||||||||||||||||
| Delta Air Lines, Inc. | ||||||||||||||||
Revolver Loan(d) | 0 | % | 03/28/13 | 1,500,000 | 1,455,750 | |||||||||||
| Term Loan B | 4.25 | % | 03/07/16 | 1,617,796 | 1,567,240 | |||||||||||
| Term Loan B | 5.50 | % | 04/20/17 | 1,200,103 | 1,178,021 | |||||||||||
| 4,201,011 | ||||||||||||||||
| Alternative Carriers–1.67% | ||||||||||||||||
| Level 3 Communications, Inc. | ||||||||||||||||
| Term Loan | 2.50-2.83 | % | 03/13/14 | 13,903,226 | 13,725,960 | |||||||||||
| Term Loan B | 5.75 | % | 09/01/18 | 181,224 | 182,979 | |||||||||||
| 13,908,939 | ||||||||||||||||
| Aluminum–0.12% | ||||||||||||||||
| Noranda Aluminum, Inc., Term Loan B | 5.75 | % | 02/28/19 | 1,034,484 | 1,037,303 | |||||||||||
| Apparel Retail–0.51% | ||||||||||||||||
Destination Maternity Corp., Term Loan B (Acquired 03/09/07; Cost $63,201) | 2.49-2.81 | % | 03/13/13 | 63,201 | 62,569 | |||||||||||
| J. Crew Group, Inc., Term Loan B | 4.75 | % | 03/07/18 | 4,226,517 | 4,149,425 | |||||||||||
| 4,211,994 | ||||||||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 Invesco Floating Rate Fund
| Interest | Maturity | Principal | ||||||||||||||
| Rate | Date | Amount | Value | |||||||||||||
| Apparel, Accessories & Luxury Goods–0.35% | ||||||||||||||||
| Levi Strauss & Co., Term Loan | 2.49 | % | 03/27/14 | $ | 3,000,000 | $ | 2,902,500 | |||||||||
| Application Software–0.03% | ||||||||||||||||
| Sabre Holdings Corp., Term Loan B | 2.24-2.55 | % | 09/30/14 | 230,055 | 216,787 | |||||||||||
| Auto Parts & Equipment–2.86% | ||||||||||||||||
| DEI Holdings, Inc., Term Loan B | 7.00-7.50 | % | 07/13/17 | 1,892,751 | 1,864,360 | |||||||||||
| Federal-Mogul Corp. | ||||||||||||||||
| Delay Draw Term Loan C2 | 2.18-2.20 | % | 12/27/15 | 1,141,232 | 1,095,868 | |||||||||||
| Term Loan B | 2.18-2.20 | % | 12/27/14 | 1,355,856 | 1,301,960 | |||||||||||
| Goodyear Tire & Rubber Co. (The), Second Lien Term Loan | 1.75 | % | 04/30/14 | 6,535,343 | 6,455,285 | |||||||||||
| Key Safety Systems, Inc. | ||||||||||||||||
Revolver Loan(d) | 0 | % | 03/08/13 | 70,758 | 66,113 | |||||||||||
| Revolver Loan | 2.50 | % | 03/08/13 | 1,929,242 | 1,802,607 | |||||||||||
| Term Loan B | 2.49-2.61 | % | 03/08/14 | 3,314,912 | 3,200,979 | |||||||||||
| Metaldyne, LLC, Term Loan B | 5.25 | % | 05/18/17 | 1,753,611 | 1,759,100 | |||||||||||
Schaeffler AG (Germany), Term Loan C2(e) | — | 01/27/17 | 2,244,775 | 2,256,235 | ||||||||||||
| Tenneco, Inc., Term Loan B | 4.69 | % | 06/03/16 | 2,561,000 | 2,565,482 | |||||||||||
| Veyance Technologies, Inc. | ||||||||||||||||
| First Lien Delay Draw Term Loan | 2.75 | % | 07/31/14 | 187,440 | 178,162 | |||||||||||
| First Lien Term Loan | 2.75 | % | 07/31/14 | 1,308,655 | 1,243,884 | |||||||||||
| 23,790,035 | ||||||||||||||||
| Automobile Manufacturers–0.89% | ||||||||||||||||
General Motors Co. LLC, Revolver Loan(d) | 0 | % | 10/27/15 | 8,254,240 | 7,434,016 | |||||||||||
| Automotive Retail–0.76% | ||||||||||||||||
| KAR Holdings, Inc., Term Loan B | 5.00 | % | 05/19/17 | 6,283,989 | 6,291,058 | |||||||||||
| Broadcasting–12.07% | ||||||||||||||||
| AMC Networks Inc., Term Loan B | 4.00 | % | 12/31/18 | 1,171,772 | 1,168,843 | |||||||||||
| Atlantic Broadband, Inc., Term Loan B | 4.00 | % | 03/08/16 | 61,448 | 61,435 | |||||||||||
| Barrington Broadcasting Group LLC, Term Loan | 7.50 | % | 06/14/17 | 326,197 | 328,914 | |||||||||||
| Bresnan Communications, LLC, Term Loan B | 4.50 | % | 12/14/17 | 1,405,266 | 1,404,682 | |||||||||||
Cequel Communications, LLC, Term Loan(e) | — | 02/14/19 | 4,689,731 | 4,651,088 | ||||||||||||
| Charter Communications, Inc. | ||||||||||||||||
| Term Loan B1 | 2.24 | % | 03/06/14 | 14,524 | 14,470 | |||||||||||
| Term Loan C | 3.83 | % | 09/06/16 | 9,422,423 | 9,377,242 | |||||||||||
| Clear Channel Communications, Inc. | ||||||||||||||||
Term Loan A(e) | — | 07/30/14 | 984,266 | 933,296 | ||||||||||||
| Term Loan A | 3.64 | % | 07/30/14 | 5,916,127 | 5,609,760 | |||||||||||
| Term Loan B | 3.89 | % | 01/29/16 | 8,834,100 | 7,287,161 | |||||||||||
| CSC Holdings, Inc., Incremental Term Loan B2 | 1.99 | % | 03/29/16 | 3,477,639 | 3,458,790 | |||||||||||
| FoxCo Acquisition LLC, Term Loan B | 4.75 | % | 07/14/15 | 1,346,232 | 1,345,391 | |||||||||||
| Gray Television Inc., Term Loan B | 3.77 | % | 12/31/14 | 101,428 | 100,620 | |||||||||||
| Harron Communications, L.P., Term Loan B | 5.25 | % | 10/06/17 | 2,518,685 | 2,507,679 | |||||||||||
| High Plains Broadcasting, LLC, Term Loan | 9.00 | % | 09/14/16 | 415,114 | 415,980 | |||||||||||
| Intelsat, Ltd., Tranche B | 5.25 | % | 04/02/18 | 8,882,598 | 8,894,722 | |||||||||||
| Kabel Deutschland (Germany), Term Loan F | 4.25 | % | 02/01/19 | 2,674,375 | 2,670,752 | |||||||||||
| LIN TV Corp., Term Loan B | 5.00 | % | 12/21/18 | 701,036 | 706,294 | |||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Floating Rate Fund
| Interest | Maturity | Principal | ||||||||||||||
| Rate | Date | Amount | Value | |||||||||||||
Broadcasting–(continued) | ||||||||||||||||
| Local TV LLC, Term Loan B2 | 4.25 | % | 05/07/15 | $ | 768,876 | $ | 766,953 | |||||||||
| Mediacom Communications Corp. | ||||||||||||||||
| Term Loan D1 | 1.94 | % | 01/31/15 | 1,971,099 | 1,902,111 | |||||||||||
| Term Loan D2 | 1.94 | % | 01/31/15 | 272,617 | 263,075 | |||||||||||
| Term Loan E | 4.50 | % | 10/23/17 | 1,983,143 | 1,972,226 | |||||||||||
| Term Loan F | 4.50 | % | 10/23/17 | 7,919,430 | 7,909,531 | |||||||||||
| Midcontinent Communications, Term Loan | 4.00 | % | 12/31/16 | 77,564 | 76,497 | |||||||||||
| NDS Group Ltd., Term Loan B | 4.00 | % | 03/10/18 | 1,677,760 | 1,665,177 | |||||||||||
| NEP II, Inc., Term Loan B2 | 3.49 | % | 02/16/17 | 4,127,406 | 4,020,775 | |||||||||||
| Newport Television, LLC, Term Loan | 9.00 | % | 09/14/16 | 1,553,080 | 1,556,319 | |||||||||||
| Raycom Media, Inc., Term Loan B | 4.50 | % | 05/31/17 | 2,123,579 | 2,092,617 | |||||||||||
| TWCC Holding Corp., Term Loan B | 4.25 | % | 02/11/17 | 4,519,909 | 4,536,452 | |||||||||||
| Univision Communications Inc., Extended Term Loan B1 | 4.49 | % | 03/31/17 | 14,679,529 | 13,676,623 | |||||||||||
| UPC Broadband Holding B.V. | ||||||||||||||||
| Facility AB Term Loan | 4.75 | % | 12/29/17 | 483,492 | 484,278 | |||||||||||
| Term Loan X | 3.77 | % | 12/31/17 | 5,500,000 | 5,424,375 | |||||||||||
| WaveDivision Holdings, LLC, Term Loan B | 2.48-2.53 | % | 06/30/14 | 371,737 | 356,867 | |||||||||||
| WOW! | ||||||||||||||||
| First Lien Term Loan | 2.75-4.75 | % | 06/30/14 | 353,333 | 340,857 | |||||||||||
| First Lien Term Loan A | 6.76-8.75 | % | 06/28/14 | 2,338,493 | 2,318,031 | |||||||||||
| 100,299,883 | ||||||||||||||||
| Building Products–0.66% | ||||||||||||||||
| Champion Window Manufacturing Inc., Term Loan | 10.50 | % | 12/31/13 | 1,134,955 | 933,500 | |||||||||||
| Custom Building Products, Inc., Term Loan | 5.75 | % | 03/19/15 | 1,638,554 | 1,642,651 | |||||||||||
| JMC Steel Group, Inc., Term Loan | 4.75 | % | 04/01/17 | 1,103,979 | 1,103,637 | |||||||||||
| Nortek, Inc., Term Loan B | 5.25-6.25 | % | 04/26/17 | 1,704,088 | 1,697,697 | |||||||||||
| United Subcontractors, Inc., Term Loan | 4.58 | % | 06/30/15 | 116,082 | 98,670 | |||||||||||
| 5,476,155 | ||||||||||||||||
| Casinos & Gaming–5.15% | ||||||||||||||||
| BLB Investors, LLC, Term Loan | 8.50 | % | 11/05/15 | 3,440,284 | 3,451,017 | |||||||||||
| Boyd Gaming Corp. | ||||||||||||||||
| Incremental Term Loan | 6.00 | % | 12/17/15 | 813,673 | 818,119 | |||||||||||
Revolver Loan(e) | — | 12/17/15 | 3,058,319 | 2,802,185 | ||||||||||||
| Term Loan | 3.74 | % | 12/17/15 | 468,679 | 457,431 | |||||||||||
| Caesars Entertainment Corporation | ||||||||||||||||
| Term Loan B1 | 3.24 | % | 01/28/15 | 4,161,934 | 3,909,887 | |||||||||||
| Term Loan B2 | 3.24 | % | 01/28/15 | 1,937,500 | 1,820,165 | |||||||||||
| Term Loan B3 | 3.24-3.58 | % | 01/28/15 | 10,604,158 | 9,961,970 | |||||||||||
| Term Loan B6 | 5.49 | % | 01/28/18 | 4,568,249 | 4,150,620 | |||||||||||
| Cannery Casino | ||||||||||||||||
| Delay Draw Term Loan | 4.49 | % | 05/18/13 | 1,950,234 | 1,885,389 | |||||||||||
| Second Lien Term Loan | 4.49 | % | 05/18/14 | 1,084,000 | 1,002,700 | |||||||||||
| Term Loan B | 4.49 | % | 05/18/13 | 1,967,028 | 1,901,624 | |||||||||||
| CCM Merger Corp., Term Loan | 7.00 | % | 03/01/17 | 2,341,631 | 2,347,485 | |||||||||||
| Isle of Capri Casinos, Inc., Term Loan B | 4.75 | % | 11/01/13 | 1,930,198 | 1,933,460 | |||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Floating Rate Fund
| Interest | Maturity | Principal | ||||||||||||||
| Rate | Date | Amount | Value | |||||||||||||
Casinos & Gaming–(continued) | ||||||||||||||||
| Las Vegas Sands Corp. | ||||||||||||||||
| Delay Draw Term Loan 1 | 2.75 | % | 11/23/16 | $ | 251 | $ | 244 | |||||||||
| Delay Draw Term Loan 2 | 2.75 | % | 11/23/15 | 2,935,010 | 2,853,579 | |||||||||||
| Term Loan B | 2.75 | % | 11/23/16 | 1,621,198 | 1,576,217 | |||||||||||
| Penn National Gaming, Inc., Term Loan B | 3.75 | % | 07/16/18 | 1,869,613 | 1,877,138 | |||||||||||
| 42,749,230 | ||||||||||||||||
| Coal & Consumable Fuels–0.40% | ||||||||||||||||
| Oxbow Carbon LLC, Extended Term Loan B | 3.74-4.08 | % | 05/08/16 | 3,374,610 | 3,353,520 | |||||||||||
| Commercial Printing–0.39% | ||||||||||||||||
| Cenveo, Inc., Term Loan B | 6.25 | % | 12/21/16 | 3,250,824 | 3,246,761 | |||||||||||
| Commodity Chemicals–0.71% | ||||||||||||||||
| Houghton International, Inc., Term Loan B1 | 6.75 | % | 01/29/16 | 1,885,430 | 1,894,857 | |||||||||||
| Unifrax I LLC, Term Loan B | 7.00 | % | 11/28/18 | 2,443,502 | 2,472,494 | |||||||||||
| Univar Corp., Term Loan B | 5.00 | % | 06/30/17 | 1,564,943 | 1,556,320 | |||||||||||
| 5,923,671 | ||||||||||||||||
| Communications Equipment–1.76% | ||||||||||||||||
| Avaya Inc., Term Loan B3 | 4.99 | % | 10/26/17 | 4,915,158 | 4,780,532 | |||||||||||
| CommScope, Inc., Term Loan B | 5.00 | % | 01/14/18 | 1,001,980 | 1,004,560 | |||||||||||
| Crown Castle International, Term Loan B | 4.00 | % | 01/31/19 | 528,999 | 527,652 | |||||||||||
| Genesys Telecommunications Laboratories | ||||||||||||||||
Term Loan(e) | — | 01/31/19 | 761,905 | 767,524 | ||||||||||||
| Term Loan | 6.75 | % | 01/31/19 | 1,432,460 | 1,443,024 | |||||||||||
| NTELOS Holdings Corporations, Term Loan B | 4.00 | % | 08/07/15 | 3,658,765 | 3,650,771 | |||||||||||
| TowerCo LLC, Term Loan B | 5.25 | % | 02/02/17 | 2,415,664 | 2,429,252 | |||||||||||
| 14,603,315 | ||||||||||||||||
| Computer Hardware–0.01% | ||||||||||||||||
| Quantum Corp., Term Loan B | 3.74 | % | 07/12/14 | 68,636 | 67,972 | |||||||||||
| Construction & Farm Machinery & Heavy Trucks–0.20% | ||||||||||||||||
| Manitowoc Company, Inc. (The), Term Loan B | 4.25 | % | 11/13/17 | 1,673,879 | 1,673,460 | |||||||||||
| Construction Materials–0.18% | ||||||||||||||||
| Hillman Group (The), Term Loan B | 5.00 | % | 05/27/16 | 1,538,653 | 1,533,844 | |||||||||||
| Data Processing & Outsourced Services–3.65% | ||||||||||||||||
| Affiliated Media Group Inc., Term Loan | 8.50 | % | 03/19/14 | 2,376,437 | 2,302,173 | |||||||||||
| Emdeon, Inc., Term Loan B | 6.75 | % | 11/02/18 | 2,615,794 | 2,653,867 | |||||||||||
| First Data Corp. | ||||||||||||||||
Delay Draw Term Loan (Acquired 01/20/11; Cost $1,390,729) | 2.99 | % | 09/24/14 | 1,489,402 | 1,351,632 | |||||||||||
Term Loan(e) | — | 03/24/18 | 1,420,138 | 1,279,452 | ||||||||||||
| Term Loan | 4.24 | % | 03/24/18 | 1,316,667 | 1,186,231 | |||||||||||
| Term Loan B1 | 2.99 | % | 09/24/14 | 4,314,823 | 4,136,039 | |||||||||||
| Term Loan B2 | 2.99 | % | 09/24/14 | 272,631 | 261,334 | |||||||||||
Term Loan B3(e) | — | 09/24/14 | 153,646 | 147,280 | ||||||||||||
| Term Loan B3 | 2.99 | % | 09/24/14 | 4,176,674 | 4,003,613 | |||||||||||
| iPayment, Inc., Term Loan | 5.75 | % | 05/08/17 | 2,285,128 | 2,285,699 | |||||||||||
| NCO Financial Systems, Inc., Term Loan B | 8.00 | % | 05/15/13 | 6,140,667 | 6,119,574 | |||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Floating Rate Fund
| Interest | Maturity | Principal | ||||||||||||||
| Rate | Date | Amount | Value | |||||||||||||
Data Processing & Outsourced Services–(continued) | ||||||||||||||||
Transunion Corp., Term Loan B(e) | 4.75 | % | 02/10/18 | $ | 725,229 | $ | 728,724 | |||||||||
| West Corp. | ||||||||||||||||
| Term Loan B4 | 4.49-4.78 | % | 07/15/16 | 561,397 | 563,443 | |||||||||||
| Term Loan B5 | 4.49-4.51 | % | 07/15/16 | 3,291,873 | 3,303,873 | |||||||||||
| 30,322,934 | ||||||||||||||||
| Diversified Chemicals–0.61% | ||||||||||||||||
| Flint Group Holdings S.A.R.L. | ||||||||||||||||
| Term Loan B5 | 4.80 | % | 12/31/14 | 795,787 | 720,851 | |||||||||||
| Term Loan C5 | 4.80 | % | 12/31/14 | 813,772 | 737,144 | |||||||||||
| Phillips Plastic Corp., Term Loan | 6.50 | % | 02/10/17 | 750,716 | 749,777 | |||||||||||
| PolyOne Corp., Term Loan | 5.00 | % | 12/20/17 | 885,805 | 890,455 | |||||||||||
| Taminco Global Chemical Corp., Term Loan B | 6.25 | % | 02/15/19 | 796,924 | 802,546 | |||||||||||
| Tronox Inc. | ||||||||||||||||
Delay Draw Term Loan(d) | 0 | % | 02/08/18 | 241,837 | 242,246 | |||||||||||
Term Loan B(e) | — | 02/08/18 | 886,737 | 888,236 | ||||||||||||
| 5,031,255 | ||||||||||||||||
| Diversified Metals & Mining–0.29% | ||||||||||||||||
| Walter Energy, Inc., Term Loan B | 4.00 | % | 04/02/18 | 2,391,383 | 2,386,301 | |||||||||||
| Diversified Real Estate Activities–0.02% | ||||||||||||||||
| Lake Las Vegas Resort | ||||||||||||||||
Revolver Loan (Acquired 07/15/10; Cost $20,888)(d) | 0 | % | 12/31/12 | 20,888 | 20,679 | |||||||||||
Revolver Loan (Acquired 08/16/10-02/29/12; Cost $13,153)(e) | — | 12/31/12 | 13,153 | 13,022 | ||||||||||||
Revolver Loan (Acquired 07/15/10-11/23/11; Cost $104,118) | 15.00 | % | 12/31/12 | 104,118 | 103,076 | |||||||||||
Super Senior Secured First Lien Term Loan (Acquired 11/23/11; Cost $16,054)(e) | — | 04/30/12 | 16,054 | 16,065 | ||||||||||||
Super Senior Secured First Lien Term Loan (Acquired 12/05/11-2/29/12; Cost $11,806) | 15.00 | % | 04/30/12 | 12,203 | 12,211 | |||||||||||
| 165,053 | ||||||||||||||||
| Diversified REIT’s–0.95% | ||||||||||||||||
| Capital Automotive REIT, Term Loan B | 5.00 | % | 03/13/17 | 7,944,348 | 7,888,737 | |||||||||||
| Diversified Support Services–1.21% | ||||||||||||||||
| Aramark Corp. | ||||||||||||||||
| Extended LOC | 0.15 | % | 07/26/16 | 82,161 | 81,745 | |||||||||||
| Extended Term Loan C | 3.83 | % | 07/26/16 | 1,103,105 | 1,097,512 | |||||||||||
| Bankruptcy Management Solutions, Inc. | ||||||||||||||||
| First Lien Term Loan B | 7.50 | % | 08/20/14 | 46,044 | 10,590 | |||||||||||
| Second Lien Term Loan | 8.26 | % | 08/20/15 | 19,396 | 284 | |||||||||||
| Brock Holdings III, Inc., First Lien Term Loan B | 6.00 | % | 03/16/17 | 2,457,528 | 2,442,685 | |||||||||||
| Central Parking Corp. | ||||||||||||||||
| Second Lien Term Loan | 5.13 | % | 11/22/14 | 25,522 | 21,055 | |||||||||||
| Syn LOC | 0.23 | % | 05/22/14 | 63,036 | 62,563 | |||||||||||
| Term Loan B | 2.75 | % | 05/22/14 | 136,840 | 135,814 | |||||||||||
| Merrill Corp. | ||||||||||||||||
| Second Lien Term Loan | 13.75-14.00 | % | 11/15/13 | 1,149,864 | 845,150 | |||||||||||
| Term Loan | 7.50 | % | 12/24/12 | 5,798,537 | 5,378,172 | |||||||||||
| 10,075,570 | ||||||||||||||||
| Drug Retail–0.97% | ||||||||||||||||
| General Nutrition Centers, Inc., Term Loan B | 4.25 | % | 03/02/18 | 1,625,992 | 1,626,837 | |||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Floating Rate Fund
| Interest | Maturity | Principal | ||||||||||||||
| Rate | Date | Amount | Value | |||||||||||||
Drug Retail–(continued) | ||||||||||||||||
| NBTY, Inc., Term Loan B | 4.25 | % | 10/01/17 | $ | 445,195 | $ | 446,146 | |||||||||
| Pantry, Inc. (The) | ||||||||||||||||
| Delay Draw Term Loan | 2.00 | % | 05/15/14 | 19,102 | 18,720 | |||||||||||
| Term Loan B | 2.00 | % | 05/15/14 | 66,731 | 65,396 | |||||||||||
| Rite Aid Corp. | ||||||||||||||||
| Tranche 2 | 2.00-2.02 | % | 06/04/14 | 4,050,031 | 3,959,533 | |||||||||||
| Tranche 5 | 4.50 | % | 03/03/18 | 2,000,000 | 1,975,410 | |||||||||||
| 8,092,042 | ||||||||||||||||
| Education Services–0.23% | ||||||||||||||||
| Bright Horizon Family Solutions, Inc., Term Loan B | 4.25-6.25 | % | 05/28/15 | 1,913,269 | 1,905,616 | |||||||||||
| Electric Utilities–0.88% | ||||||||||||||||
| AES Corp., Term Loan B | 4.25 | % | 05/27/18 | 4,070,813 | 4,076,410 | |||||||||||
| Bicent Power LLC, Second Lien Term Loan | 4.58 | % | 07/10/14 | 250,400 | 3,131 | |||||||||||
| BRSP LLC, Term Loan B | 7.50 | % | 06/24/14 | 2,181,427 | 2,192,334 | |||||||||||
| FirstLight Power Resources Inc. | ||||||||||||||||
| Second Lien Term Loan | 4.75 | % | 05/01/14 | 241,744 | 208,202 | |||||||||||
| Term Loan B | 2.75 | % | 11/01/13 | 781,762 | 744,144 | |||||||||||
NSG Holdings II, LLC Syn LOC (Acquired 03/13/07; Cost $26,584) | 2.05 | % | 06/15/14 | 26,570 | 26,038 | |||||||||||
Term Loan (Acquired 03/13/07; Cost $26,538) | 2.05 | % | 06/15/14 | 26,439 | 25,910 | |||||||||||
| 7,276,169 | ||||||||||||||||
| Electrical Components & Equipment–0.21% | ||||||||||||||||
| Aeroflex Inc., Term Loan B | 4.25 | % | 05/09/18 | 1,828,591 | 1,787,603 | |||||||||||
| Environmental & Facilities Services–0.03% | ||||||||||||||||
| Safety-Kleen Systems, Inc., Term Loan B | 5.00 | % | 02/21/17 | 225,861 | 226,567 | |||||||||||
| Food Distributors–2.04% | ||||||||||||||||
| Bolthouse Farms (Wm.), Inc., First Lien Term Loan | 5.50-5.75 | % | 02/11/16 | 1,870,848 | 1,877,574 | |||||||||||
| Dean Foods Co. | ||||||||||||||||
| Term Loan A | 3.25 | % | 04/02/14 | 1,247,460 | 1,237,430 | |||||||||||
| Term Loan B | 3.58 | % | 04/02/16 | 1,389,105 | 1,366,532 | |||||||||||
| Term Loan B | 3.50-3.83 | % | 04/02/17 | 3,143,218 | 3,092,549 | |||||||||||
| Farley’s & Sathers Candy Company, Inc., Term Loan B | 6.50 | % | 03/30/18 | 1,997,925 | 1,987,935 | |||||||||||
| Pierre Foods Inc. | ||||||||||||||||
| First Lien Term Loan | 7.00 | % | 09/30/16 | 4,482,430 | 4,493,636 | |||||||||||
| Second Lien Term Loan | 11.25 | % | 09/30/17 | 244,128 | 245,043 | |||||||||||
| Pinnacle Foods Group, Inc. (Aurora Foods) | ||||||||||||||||
Revolver Loan(d) | 0 | % | 04/02/13 | 1,000,000 | 922,500 | |||||||||||
| Term Loan D | 6.00 | % | 04/02/14 | 1,750,018 | 1,765,821 | |||||||||||
| 16,989,020 | ||||||||||||||||
| Food Retail–0.87% | ||||||||||||||||
Roundy’s Supermarkets, Inc., Term Loan B(e) | — | 02/13/19 | 2,586,860 | 2,596,146 | ||||||||||||
| SUPERVALU Inc., Term Loan B3 | 4.50 | % | 04/30/18 | 4,589,587 | 4,601,497 | |||||||||||
| 7,197,643 | ||||||||||||||||
| Gas Utilities–0.89% | ||||||||||||||||
| Obsidian Energy Co., LLC, Term Loan | 7.00 | % | 11/02/15 | 1,876,178 | 1,890,249 | |||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Floating Rate Fund
| Interest | Maturity | Principal | ||||||||||||||
| Rate | Date | Amount | Value | |||||||||||||
Gas Utilities–(continued) | ||||||||||||||||
| Star West Generation LLC, Term Loan B | 6.00 | % | 05/17/18 | $ | 4,482,263 | $ | 4,437,441 | |||||||||
| TPF Generation Holdings, LLC Second Lien Term Loan | 4.83 | % | 12/15/14 | 267,000 | 258,990 | |||||||||||
| Syn LOC D | 0.48 | % | 12/15/13 | 297,394 | 296,155 | |||||||||||
| Term Loan | 2.58 | % | 12/15/13 | 497,142 | 495,071 | |||||||||||
| 7,377,906 | ||||||||||||||||
| Health Care Distributors–0.75% | ||||||||||||||||
| Warner Chilcott PLC Term Loan B1 | 4.25 | % | 03/15/18 | 2,849,792 | 2,850,233 | |||||||||||
| Term Loan B2 | 4.25 | % | 03/15/18 | 1,424,896 | 1,425,117 | |||||||||||
| Term Loan B3 | 4.25 | % | 03/15/18 | 1,959,232 | 1,959,535 | |||||||||||
| 6,234,885 | ||||||||||||||||
| Health Care Equipment–1.79% | ||||||||||||||||
| Alere Inc. | ||||||||||||||||
| Incremental Term Loan B | 4.50 | % | 06/30/17 | 1,000,000 | 995,360 | |||||||||||
| Term Loan B | 4.50 | % | 06/30/17 | 1,662,729 | 1,654,306 | |||||||||||
| Biomet, Inc., Term Loan | 3.24-3.57 | % | 03/25/15 | 3,294,300 | 3,266,397 | |||||||||||
| Carestream Health, Inc., Term Loan B | 5.00 | % | 02/25/17 | 6,237,171 | 5,950,915 | |||||||||||
CONMED Corp., Term Loan (Acquired 04/13/06-02/04/10; Cost $807,220) | 1.75 | % | 04/13/13 | 864,930 | 851,956 | |||||||||||
| DJO Finance LLC, Term Loan | 3.24 | % | 05/20/14 | 2,152,204 | 2,127,217 | |||||||||||
| 14,846,151 | ||||||||||||||||
| Health Care Facilities–3.78% | ||||||||||||||||
| Community Health Systems, Extended Term Loan | 3.99-5.75 | % | 01/25/17 | 6,187,620 | 6,128,652 | |||||||||||
| DaVita Inc., Term Loan B | 4.50 | % | 10/20/16 | 4,993,140 | 5,020,153 | |||||||||||
| Golden Living, Term Loan B | 5.00 | % | 05/04/18 | 3,413,562 | 3,225,816 | |||||||||||
| HCA, Inc. | ||||||||||||||||
| Term Loan B2 | 3.83 | % | 03/31/17 | 2,106,169 | 2,081,885 | |||||||||||
| Term Loan B3 | 3.49 | % | 05/01/18 | 4,711,786 | 4,646,999 | |||||||||||
| HCR ManorCare, Inc., Term Loan B | 5.00 | % | 04/06/18 | 2,239,494 | 2,143,902 | |||||||||||
| Health Management Associates, Inc., Term Loan B | 4.50 | % | 11/16/18 | 3,641,498 | 3,627,387 | |||||||||||
| Kindred Healthcare, Inc., Term Loan B | 5.25 | % | 06/01/18 | 3,264,439 | 3,153,448 | |||||||||||
| Surgery Center Holdings Inc., Term Loan B | 6.50 | % | 02/06/17 | 1,459,455 | 1,375,536 | |||||||||||
| 31,403,778 | ||||||||||||||||
| Health Care Services–0.94% | ||||||||||||||||
| Fresenius Medical Care Holdings, Inc. | ||||||||||||||||
| Term Loan D1 | 3.50 | % | 09/10/14 | 219,787 | 220,140 | |||||||||||
| Term Loan D2 | 3.50 | % | 09/10/14 | 125,548 | 125,750 | |||||||||||
| Genoa Healthcare LLC Second Lien Term Loan | 14.00 | % | 02/10/15 | 757,463 | 549,161 | |||||||||||
| Term Loan B | 7.25 | % | 08/10/14 | 50,722 | 47,954 | |||||||||||
| Gentiva Health Services, Inc., Term Loan B1 | 4.75 | % | 08/17/16 | 1,431,066 | 1,370,603 | |||||||||||
| Harlan Laboratories, Inc, Term Loan B | 3.75-3.86 | % | 07/11/14 | 2,564,275 | 2,307,848 | |||||||||||
| Medpace, Inc, Term Loan B | 6.50-7.25 | % | 06/17/17 | 2,471,080 | 2,384,592 | |||||||||||
| Sun Healthcare Group, Inc., Term Loan | 8.75 | % | 10/18/16 | 879,599 | 785,042 | |||||||||||
| 7,791,090 | ||||||||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Floating Rate Fund
| Interest | Maturity | Principal | ||||||||||||||
| Rate | Date | Amount | Value | |||||||||||||
| Health Care Supplies–1.32% | ||||||||||||||||
| Bausch & Lomb Inc. | ||||||||||||||||
| Delay Draw Term Loan | 3.49 | % | 04/26/15 | $ | 99,589 | $ | 99,506 | |||||||||
Revolver Loan(d) | 0 | % | 10/25/13 | 1,800,000 | 1,705,500 | |||||||||||
| Revolver Loan | 2.99 | % | 10/25/13 | 200,000 | 189,500 | |||||||||||
| Term Loan B | 3.49-3.83 | % | 04/26/15 | 406,364 | 406,025 | |||||||||||
| Kinetic Concepts, Inc. | ||||||||||||||||
Term Loan B1(e) | — | 05/04/18 | 625,000 | 637,331 | ||||||||||||
| Term Loan B1 | 7.00 | % | 05/04/18 | 7,788,574 | 7,942,243 | |||||||||||
| 10,980,105 | ||||||||||||||||
| Health Care Technology–0.68% | ||||||||||||||||
| IMS Health, Inc., Term Loan B | 4.50 | % | 08/26/17 | 4,055,244 | 4,069,316 | |||||||||||
| Trizetto Group, Inc., Term Loan B | 4.75 | % | 05/02/18 | 1,609,368 | 1,603,043 | |||||||||||
| 5,672,359 | ||||||||||||||||
| Home Furnishings–0.55% | ||||||||||||||||
| National Bedding Co., LLC, Second Lien Term Loan | 5.25 | % | 02/28/14 | 4,580,185 | 4,532,963 | |||||||||||
| Hotels, Resorts & Cruise Lines–0.37% | ||||||||||||||||
| American Gaming Systems | ||||||||||||||||
| Delay Draw Term Loan | 3.25 | % | 05/14/13 | 500,959 | 388,243 | |||||||||||
| Term Loan B | 3.25 | % | 05/14/13 | 3,332,803 | 2,582,923 | |||||||||||
| Golden Nugget, Inc., Second Lien Term Loan | 3.50 | % | 12/31/14 | 116,593 | 95,606 | |||||||||||
| 3,066,772 | ||||||||||||||||
| Household Appliances–0.30% | ||||||||||||||||
| Goodman Global, Inc. | ||||||||||||||||
| First Lien Term Loan B | 5.75 | % | 10/28/16 | 2,267,335 | 2,287,174 | |||||||||||
| Second Lien Term Loan | 9.00 | % | 10/30/17 | 187,794 | 191,433 | |||||||||||
| 2,478,607 | ||||||||||||||||
| Household Products–3.14% | ||||||||||||||||
| Amscan Inc., Term Loan B | 6.75 | % | 12/02/17 | 2,879,815 | 2,884,941 | |||||||||||
| Nice-Pak Products Inc., Term Loan | 3.58-5.25 | % | 06/18/14 | 560,386 | 554,781 | |||||||||||
| Prestige Brands, Inc., Term Loan B | 5.25 | % | 01/31/19 | 1,151,355 | 1,158,793 | |||||||||||
| Reynolds Group Holdings Ltd. | ||||||||||||||||
| Term Loan B | 6.50 | % | 02/09/18 | 1,227,502 | 1,241,618 | |||||||||||
Term Loan C(e) | — | 08/09/18 | 1,425,120 | 1,443,233 | ||||||||||||
| Term Loan C | 6.50 | % | 08/09/18 | 12,917,833 | 13,082,019 | |||||||||||
| Spectrum Brands, Inc., Term Loan B | 5.00-6.25 | % | 06/17/16 | 3,950,765 | 3,965,028 | |||||||||||
| Sun Products Corp. (The) | ||||||||||||||||
| Second Lien Term Loan | 4.50 | % | 10/26/14 | 1,000,000 | 849,165 | |||||||||||
| Term Loan B | 2.25 | % | 04/25/14 | 998,319 | 933,429 | |||||||||||
| 26,113,007 | ||||||||||||||||
| Housewares & Specialties–0.15% | ||||||||||||||||
| Springs Window Fashions, LLC, Term Loan B | 6.00 | % | 05/31/17 | 1,261,151 | 1,239,081 | |||||||||||
| Human Resource & Employment Services–0.61% | ||||||||||||||||
| Koosharem Corp. | ||||||||||||||||
| First Lien Term Loan | 10.25 | % | 06/30/14 | 732,855 | 506,282 | |||||||||||
Second Lien Term Loan(f) | 11.50 | % | 12/31/14 | 362,300 | 54,345 | |||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 Invesco Floating Rate Fund
| Interest | Maturity | Principal | ||||||||||||||
| Rate | Date | Amount | Value | |||||||||||||
Human Resource & Employment Services–(continued) | ||||||||||||||||
| Kronos Inc. | ||||||||||||||||
| Extended First Lien Term Loan B | 5.33 | % | 06/11/17 | $ | 1,258,602 | $ | 1,253,492 | |||||||||
| Extended Second Lien Term Loan B | 10.58 | % | 06/11/18 | 3,255,649 | 3,289,573 | |||||||||||
| 5,103,692 | ||||||||||||||||
| Independent Power Producers & Energy Traders–1.77% | ||||||||||||||||
| Calpine Corp. | ||||||||||||||||
| Term Loan | 4.50 | % | 04/02/18 | 1,350,663 | 1,342,944 | |||||||||||
| Term Loan B | 4.50 | % | 04/01/18 | 2,104,047 | 2,092,023 | |||||||||||
| Energy Future Holdings Corp. | ||||||||||||||||
| Extended Term Loan | 4.76 | % | 10/10/17 | 5,010,431 | 2,812,104 | |||||||||||
| Term Loan | 3.76 | % | 10/10/14 | 8,325,283 | 5,100,984 | |||||||||||
| NRG Energy, Inc., Term Loan | 4.00 | % | 07/01/18 | 3,334,744 | 3,329,875 | |||||||||||
| 14,677,930 | ||||||||||||||||
| Industrial Conglomerates–0.24% | ||||||||||||||||
| BakerCorp International, Inc., Term Loan | 5.00 | % | 06/01/18 | 1,963,460 | 1,966,896 | |||||||||||
| Industrial Machinery–0.91% | ||||||||||||||||
| Capital Safety Group, Term Loan | 6.25 | % | 01/21/19 | 1,593,728 | 1,597,721 | |||||||||||
| Colfax Corp., Term Loan B | 4.50 | % | 01/13/19 | 2,867,413 | 2,874,223 | |||||||||||
| Husky Injection Molding Systems Ltd., Term Loan | 6.50 | % | 06/29/18 | 758,927 | 763,906 | |||||||||||
| Rexnord Corp., Term Loan B | 2.75-3.06 | % | 07/19/13 | 1,370,563 | 1,366,561 | |||||||||||
| Terex Corp., Term Loan | 5.50 | % | 04/28/17 | 984,434 | 994,279 | |||||||||||
| 7,596,690 | ||||||||||||||||
| Insurance Brokers–0.44% | ||||||||||||||||
| Sedgwick Claims Management Services, Inc., Term Loan B | 5.00 | % | 12/31/16 | 2,989,491 | 2,985,755 | |||||||||||
| Swett & Crawford Group, Inc. | ||||||||||||||||
| First Lien Term Loan | 2.49 | % | 04/03/14 | 372,427 | 309,115 | |||||||||||
| Second Lien Term Loan | 5.74 | % | 10/03/14 | 105,200 | 64,435 | |||||||||||
| USI Holdings Corp., Term Loan B | 2.75 | % | 05/05/14 | 311,203 | 306,276 | |||||||||||
| 3,665,581 | ||||||||||||||||
| Integrated Telecommunication Services–1.38% | ||||||||||||||||
| Consolidated Communications Holdings, Inc. | ||||||||||||||||
| Delay Draw Term Loan | 2.75 | % | 12/31/14 | 1,000,000 | 988,750 | |||||||||||
| Term Loan B | 2.75 | % | 12/31/14 | 3,000,000 | 2,966,250 | |||||||||||
| Integra Telecom, Inc., Term Loan B | 9.25 | % | 04/15/15 | 1,167,339 | 1,032,733 | |||||||||||
| Knology, Inc., Term Loan B | 4.00 | % | 08/18/17 | 2,591,198 | 2,577,594 | |||||||||||
| NeuStar, Inc., Term Loan | 5.00 | % | 11/08/18 | 1,940,974 | 1,951,484 | |||||||||||
| Syniverse Technologies, Term Loan B | 5.25 | % | 12/21/17 | 1,625,431 | 1,633,306 | |||||||||||
| Windstream Corp., Term Loan B2 | 3.00-3.33 | % | 12/17/15 | 339,697 | 340,153 | |||||||||||
| 11,490,270 | ||||||||||||||||
| Internet Software & Services–0.51% | ||||||||||||||||
| Digital Generation, Inc., Term Loan B | 5.75 | % | 07/26/18 | 1,759,497 | 1,728,706 | |||||||||||
| Go Daddy Operating Company, LLC, Term Loan | 7.00 | % | 12/17/18 | 1,132,575 | 1,143,459 | |||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 Invesco Floating Rate Fund
| Interest | Maturity | Principal | ||||||||||||||
| Rate | Date | Amount | Value | |||||||||||||
Internet Software & Services–(continued) | ||||||||||||||||
| SkillSoft Ltd. | ||||||||||||||||
| Term Loan B | 6.50 | % | 05/26/17 | $ | 769,455 | $ | 770,609 | |||||||||
| Term Loan C | 6.50 | % | 05/26/17 | 597,876 | 598,773 | |||||||||||
| 4,241,547 | ||||||||||||||||
| IT Consulting & Other Services–0.82% | ||||||||||||||||
| SunGard Data Systems, Inc. | ||||||||||||||||
| Incremental Term Loan B | 3.74 | % | 02/28/14 | 1,378,980 | 1,379,221 | |||||||||||
| U.S. Dollar Term Loan B | 3.99-4.15 | % | 02/28/16 | 5,388,715 | 5,394,320 | |||||||||||
| 6,773,541 | ||||||||||||||||
| Leisure Facilities–1.15% | ||||||||||||||||
| 24 Hour Fitness Worldwide Inc., Term Loan B | 7.50 | % | 04/22/16 | 4,186,607 | 4,121,191 | |||||||||||
| AMF Group | ||||||||||||||||
| First Lien Term Loan B | 2.74 | % | 06/08/13 | 1,289,782 | 1,176,926 | |||||||||||
| Second Lien Term Loan | 6.49 | % | 12/08/13 | 66,603 | 44,124 | |||||||||||
| Live Nation Entertainment, Inc., Term Loan B | 4.50 | % | 11/06/16 | 1,856,714 | 1,861,356 | |||||||||||
| Six Flags Entertainment Corp., Term Loan B | 4.25 | % | 12/20/18 | 2,396,565 | 2,391,521 | |||||||||||
| 9,595,118 | ||||||||||||||||
| Leisure Products–0.19% | ||||||||||||||||
Panavision Inc., Second Lien Term Loan (Acquired 07/26/06; Cost $9,500) | 8.08 | % | 03/30/12 | 9,500 | 1 | |||||||||||
| Topps Company Inc. (The), Term Loan B | 3.02 | % | 10/12/14 | 1,645,636 | 1,575,697 | |||||||||||
| 1,575,698 | ||||||||||||||||
| Marine–0.31% | ||||||||||||||||
| Dockwise Ltd. | ||||||||||||||||
| Term Loan B1 | 2.33 | % | 01/11/15 | 231,557 | 213,322 | |||||||||||
| Term Loan B2 | 2.33 | % | 01/11/15 | 980,696 | 905,918 | |||||||||||
| Term Loan C1 | 3.20 | % | 01/11/16 | 214,741 | 198,904 | |||||||||||
| Term Loan C2 | 3.20 | % | 01/11/16 | 980,696 | 905,918 | |||||||||||
| US Shipping LLC, Term Loan | 2.50-9.20 | % | 08/07/13 | 415,825 | 313,317 | |||||||||||
| 2,537,379 | ||||||||||||||||
| Metal & Glass Containers–0.40% | ||||||||||||||||
| BWAY Holding Company | ||||||||||||||||
| Term Loan B | 4.50 | % | 02/23/18 | 2,223,495 | 2,224,807 | |||||||||||
| Term Loan C | 4.50 | % | 02/23/18 | 204,968 | 205,089 | |||||||||||
| MAUSER Corp. | ||||||||||||||||
| Term Loan B2 | 2.74 | % | 06/13/15 | 500,000 | 449,375 | |||||||||||
| Term Loan C2 | 2.99 | % | 06/13/16 | 500,000 | 451,875 | |||||||||||
| 3,331,146 | ||||||||||||||||
| Movies & Entertainment–0.82% | ||||||||||||||||
| Alpha III Term Loan B1 | 2.37 | % | 12/31/13 | 3,305,382 | 3,195,891 | |||||||||||
| Term Loan B2 | 2.37 | % | 12/31/13 | 2,050,388 | 1,982,469 | |||||||||||
AMC Entertainment, Inc., Term Loan B3(e) | — | 02/22/18 | 1,354,813 | 1,342,708 | ||||||||||||
| Zuffa LLC, Term Loan | 2.25 | % | 06/19/15 | 302,404 | 293,116 | |||||||||||
| 6,814,184 | ||||||||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 Invesco Floating Rate Fund
| Interest | Maturity | Principal | ||||||||||||||
| Rate | Date | Amount | Value | |||||||||||||
| Oil & Gas Drilling–0.20% | ||||||||||||||||
| Glenn Pool Oil & Gas Trust I, Term Loan | 4.50 | % | 05/02/16 | $ | 1,638,520 | $ | 1,642,616 | |||||||||
| Oil & Gas Equipment & Services–0.43% | ||||||||||||||||
| CCS Corp. | ||||||||||||||||
| Delay Draw Term Loan | 3.24 | % | 11/14/14 | 949,774 | 922,269 | |||||||||||
| Term Loan B | 3.24 | % | 11/14/14 | 1,177,976 | 1,143,862 | |||||||||||
| Willbros Group, Inc., Term Loan B | 9.50 | % | 06/30/14 | 1,542,476 | 1,544,404 | |||||||||||
| 3,610,535 | ||||||||||||||||
| Oil & Gas Refining & Marketing–0.58% | ||||||||||||||||
| CITGO Petroleum Corp., Term Loan B | 8.00 | % | 06/24/15 | 794,392 | 804,322 | |||||||||||
| Western Refining, Inc., Term Loan B | 7.50 | % | 03/15/17 | 3,990,285 | 4,035,176 | |||||||||||
| 4,839,498 | ||||||||||||||||
| Oil & Gas Storage & Transportation–0.16% | ||||||||||||||||
| Buffalo Gulf Coast Terminals LLC, Term Loan | 7.50 | % | 10/31/17 | 1,366,237 | 1,369,652 | |||||||||||
| Other Diversified Financial Services–0.01% | ||||||||||||||||
| Tomkins PLC, Term Loan B | 4.25 | % | 09/29/16 | 44,796 | 44,869 | |||||||||||
| Packaged Foods & Meats–1.79% | ||||||||||||||||
| DelMonte Corp., Term Loan | 4.50 | % | 03/08/18 | 6,992,124 | 6,883,326 | |||||||||||
| Dole Foods Co., Inc. | ||||||||||||||||
| Term Loan B2 | 5.00-6.00 | % | 07/08/18 | 1,597,171 | 1,607,817 | |||||||||||
| Term Loan C2 | 5.00-6.00 | % | 07/08/18 | 2,966,176 | 2,985,945 | |||||||||||
| JBS USA, LLC, Term Loan B | 4.25 | % | 05/25/18 | 3,392,209 | 3,396,449 | |||||||||||
| 14,873,537 | ||||||||||||||||
| Paper Packaging–0.19% | ||||||||||||||||
| Ranpak Corp., Term Loan B | 4.75 | % | 04/20/17 | 538,078 | 539,423 | |||||||||||
| Sealed Air Corp., Term Loan B | 4.75 | % | 10/03/18 | 991,363 | 1,003,472 | |||||||||||
| 1,542,895 | ||||||||||||||||
| Paper Products–0.59% | ||||||||||||||||
| Exopack Holding Corp., Term Loan B | 6.50 | % | 05/31/17 | 2,817,199 | 2,818,607 | |||||||||||
| Hoffmaster Group, Inc., First Lien Term Loan | 7.00 | % | 01/03/18 | 1,384,027 | 1,386,332 | |||||||||||
| Xerium Technologies, Inc., Term Loan B | 5.50 | % | 05/26/17 | 689,896 | 689,320 | |||||||||||
| 4,894,259 | ||||||||||||||||
| Personal Products–0.52% | ||||||||||||||||
| FTD Group, Inc., Term Loan B | 4.75-5.75 | % | 06/11/18 | 2,354,102 | 2,312,905 | |||||||||||
| Revlon, Inc., Term Loan B | 4.75 | % | 11/19/17 | 2,003,688 | 2,004,309 | |||||||||||
| 4,317,214 | ||||||||||||||||
| Pharmaceuticals–1.87% | ||||||||||||||||
Catalent Pharma Solutions, Inc., Delay Draw Term Loan 2(e) | — | 09/15/17 | 1,735,383 | 1,743,331 | ||||||||||||
| Grifols S.A. (Spain), U.S. Term Loan B | 4.50 | % | 06/01/17 | 4,785,807 | 4,793,090 | |||||||||||
| Quintiles Transnational Corp., Term Loan B | 5.00 | % | 06/08/18 | 4,189,369 | 4,178,895 | |||||||||||
| RPI Finance Trust, Term Loan | 4.00 | % | 05/09/18 | 4,777,225 | 4,784,367 | |||||||||||
| 15,499,683 | ||||||||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 Invesco Floating Rate Fund
| Interest | Maturity | Principal | ||||||||||||||
| Rate | Date | Amount | Value | |||||||||||||
| Photographic Products–0.10% | ||||||||||||||||
| Eastman Kodak Company, DIP Term Loan | 8.50 | % | 07/20/13 | $ | 803,198 | $ | 816,250 | |||||||||
| Publishing–1.31% | ||||||||||||||||
| Endurance Business Media, Inc., First Lien Term Loan | 6.50 | % | 12/14/14 | 63,133 | 15,783 | |||||||||||
| F & W Publications, Inc., Term Loan | 7.75 | % | 06/09/14 | 50,213 | 46,447 | |||||||||||
| Gatehouse Media, Inc. | ||||||||||||||||
| Delay Draw Term Loan | 2.25 | % | 08/28/14 | 593,562 | 170,946 | |||||||||||
| Term Loan | 2.50 | % | 08/28/14 | 254,335 | 73,248 | |||||||||||
| Term Loan B | 2.25 | % | 08/28/14 | 995,336 | 286,657 | |||||||||||
Tribune Company, Term Loan B(f) | 5.25 | % | 06/04/14 | 15,661,594 | 10,251,845 | |||||||||||
| 10,844,926 | ||||||||||||||||
| Real Estate Management & Development–1.11% | ||||||||||||||||
| CBRE Group, Inc. | ||||||||||||||||
| Term Loan C | 3.49 | % | 03/05/18 | 335,783 | 334,776 | |||||||||||
| Term Loan D | 3.75 | % | 09/04/19 | 8,942,257 | 8,915,430 | |||||||||||
| 9,250,206 | ||||||||||||||||
| Real Estate Services–1.25% | ||||||||||||||||
| RE/MAX LLC, Term Loan B | 5.50 | % | 04/16/16 | 2,148,998 | 2,145,420 | |||||||||||
| Realogy Corp. | ||||||||||||||||
Extended Revolving Facility Commitments(e) | — | 04/10/16 | 3,345,514 | 2,828,348 | ||||||||||||
Extended LOC(e) | — | 10/10/16 | 5,284 | 4,930 | ||||||||||||
| Extended LOC | 0.11 | % | 10/10/16 | 23,695 | 22,106 | |||||||||||
| Extended Term Loan | 4.77 | % | 10/10/16 | 4,437,551 | 4,140,014 | |||||||||||
Term Loan(e) | — | 10/10/16 | 1,307,813 | 1,220,124 | ||||||||||||
| 10,360,942 | ||||||||||||||||
| Research & Consulting Services–0.72% | ||||||||||||||||
| IMG Worldwide, Inc., Term Loan B | 5.50 | % | 06/16/16 | 4,848,692 | 4,842,607 | |||||||||||
| TASC Inc., Term Loan B | 4.50 | % | 12/18/15 | 1,146,153 | 1,143,523 | |||||||||||
| 5,986,130 | ||||||||||||||||
| Restaurants–0.80% | ||||||||||||||||
| Burger King Holdings, Inc., Term Loan B | 4.50 | % | 10/19/16 | 2,151,748 | 2,149,973 | |||||||||||
| Caribbean Restaurants LLC, Term Loan B | 9.00 | % | 02/17/17 | 427,945 | 427,945 | |||||||||||
| FOCUS Brands Inc., Term Loan B | 6.25-7.25 | % | 02/21/18 | 827,616 | 832,271 | |||||||||||
| OSI Restaurant Partners, LLC | ||||||||||||||||
| Prefunded Revolver Credit | 0.36-2.56 | % | 06/14/13 | 1,388,628 | 1,359,857 | |||||||||||
| Term Loan | 2.56 | % | 06/14/14 | 1,887,461 | 1,848,353 | |||||||||||
| Quiznos Corp., First Lien Term Loan | 9.00 | % | 01/24/17 | 11,247 | 9,720 | |||||||||||
| 6,628,119 | ||||||||||||||||
| Semiconductors–0.39% | ||||||||||||||||
| Freescale Semiconductor, Inc. | ||||||||||||||||
Extended Term Loan(e) | — | 12/01/16 | 2,050,000 | 2,004,203 | ||||||||||||
| Extended Term Loan | 4.52 | % | 12/01/16 | 1,304,869 | 1,275,718 | |||||||||||
| 3,279,921 | ||||||||||||||||
| �� | ||||||||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 Invesco Floating Rate Fund
| Interest | Maturity | Principal | ||||||||||||||
| Rate | Date | Amount | Value | |||||||||||||
| Soft Drinks–0.20% | ||||||||||||||||
| DS Waters of America, Inc. | ||||||||||||||||
First Lien Term Loan(d) | 0 | % | 08/29/17 | $ | 272,093 | $ | 268,919 | |||||||||
| First Lien Term Loan | 10.50 | % | 08/29/17 | 1,383,139 | 1,367,004 | |||||||||||
| 1,635,923 | ||||||||||||||||
| Specialized Consumer Services–1.52% | ||||||||||||||||
| Global Tel*Link Corp., Term Loan B | 7.00 | % | 12/14/17 | 3,195,545 | 3,192,558 | |||||||||||
| Jacobson Corp., Term Loan B | 2.75 | % | 06/19/14 | 1,368,436 | 1,271,961 | |||||||||||
| ServiceMaster Company (The) | ||||||||||||||||
| Delay Draw Term Loan | 2.75 | % | 07/24/14 | 240,634 | 238,434 | |||||||||||
| Syn LOC | 0.33 | % | 07/24/14 | 5,000,000 | 4,800,000 | |||||||||||
| Term Loan B | 2.77-3.03 | % | 07/24/14 | 3,149,843 | 3,121,054 | |||||||||||
| 12,624,007 | ||||||||||||||||
| Specialized Finance–1.74% | ||||||||||||||||
| Harland Clarke Corp., Term Loan B | 2.74-3.08 | % | 06/30/14 | 3,303,679 | 3,033,190 | |||||||||||
| MoneyGram International, Inc. | ||||||||||||||||
| Term Loan B | 4.50 | % | 11/17/17 | 1,281,960 | 1,278,755 | |||||||||||
| Term Loan B1 | 4.50 | % | 11/17/17 | 951,393 | 949,014 | |||||||||||
| Nuveen Investments, LLC Add-on Extended First Lien Term Loan | 5.80-5.83 | % | 05/13/17 | 1,248,699 | 1,260,406 | |||||||||||
| Extended First Lien Term Loan | 5.74-5.83 | % | 05/13/17 | 6,662,470 | 6,666,634 | |||||||||||
| RJO Holdings Corp., Term Loan | 7.00 | % | 12/10/15 | 1,666,667 | 1,300,000 | |||||||||||
| 14,487,999 | ||||||||||||||||
| Specialty Chemicals–2.18% | ||||||||||||||||
| Hexion Specialty Chemicals, Inc. | ||||||||||||||||
Credit Linked Deposit (Acquired 06/02/06; Cost $87,966) | 0.20 | % | 05/05/13 | 87,966 | 84,931 | |||||||||||
| Term Loan C5 | 4.38 | % | 05/05/15 | 3,056,874 | 2,995,737 | |||||||||||
| Term Loan C7 | 4.38 | % | 05/05/15 | 4,137,855 | 4,044,754 | |||||||||||
MetoKote Corporation., Inc., Term Loan (Acquired 11/22/11-02/09/12; Cost $2,092,223) | 10.00 | % | 11/27/13 | 2,092,716 | 2,079,637 | |||||||||||
| OMNOVA Solutions Inc., Term Loan | 5.75 | % | 05/31/17 | 4,176,712 | 4,171,491 | |||||||||||
| Potters Holdings II, LP, First Lien Term Loan B | 6.00 | % | 05/06/17 | 1,580,252 | 1,580,900 | |||||||||||
| PQ Corp., Term Loan | 3.50 | % | 07/30/14 | 3,179,097 | 3,113,989 | |||||||||||
| 18,071,439 | ||||||||||||||||
| Specialty Stores–0.79% | ||||||||||||||||
| Academy Sports and Outdoors, Term Loan | 6.00 | % | 08/03/18 | 136,410 | 136,759 | |||||||||||
| Claire’s Stores, Inc. | ||||||||||||||||
Term Loan B(e) | — | 05/29/14 | 500,000 | 475,505 | ||||||||||||
| Term Loan B | 2.99-3.30 | % | 05/29/14 | 1,683,701 | 1,601,217 | |||||||||||
| Guitar Center, Inc., Term Loan | 5.83 | % | 04/10/17 | 2,500,000 | 2,342,850 | |||||||||||
| Gymboree Corp., Term Loan B | 5.00 | % | 02/23/18 | 101,226 | 95,626 | |||||||||||
| Michaels Stores, Inc., Term Loan B3 | 5.13 | % | 07/31/16 | 904,458 | 901,745 | |||||||||||
| PETCO Animal Supplies, Inc., Term Loan B | 4.50 | % | 11/24/17 | 1,051,202 | 1,049,373 | |||||||||||
| 6,603,075 | ||||||||||||||||
| Systems Software–1.18% | ||||||||||||||||
| Blackboard Inc. | ||||||||||||||||
| First Lien Term Loan | 7.50 | % | 10/04/18 | 2,869,679 | 2,843,981 | |||||||||||
| Second Lien Term Loan | 11.50 | % | 04/04/19 | 853,824 | 784,989 | |||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
17 Invesco Floating Rate Fund
| Interest | Maturity | Principal | ||||||||||||||
| Rate | Date | Amount | Value | |||||||||||||
Systems Software–(continued) | ||||||||||||||||
| Datatel, Inc., Term Loan | 6.25 | % | 07/19/18 | $ | 5,325,196 | $ | 5,395,089 | |||||||||
| Dealer Comp-rey, Term Loan B | 3.75 | % | 04/21/18 | 795,532 | 797,688 | |||||||||||
| 9,821,747 | ||||||||||||||||
| Textiles–0.08% | ||||||||||||||||
| Warnaco Group, Inc., Term Loan B | 3.75 | % | 06/17/18 | 672,863 | 672,005 | |||||||||||
| Trading Companies & Distributors–0.26% | ||||||||||||||||
| Flying Fortress Inc., Term Loan | 5.00 | % | 06/30/17 | 2,139,823 | 2,139,160 | |||||||||||
| Trucking–0.71% | ||||||||||||||||
| Avis Budget Car Rental, LLC, Term Loan B | 6.25 | % | 09/21/18 | 1,253,730 | 1,269,715 | |||||||||||
| Hertz Corp. | ||||||||||||||||
| LOC | 1.00 | % | 03/11/18 | 551,589 | 528,147 | |||||||||||
| Term Loan B | 3.75 | % | 03/11/18 | 236,183 | 236,108 | |||||||||||
| Kenan Advantage Group, Inc., Term Loan B | 4.50 | % | 06/11/16 | 1,240,902 | 1,240,902 | |||||||||||
| Swift Transportation Corp., Term Loan B | 6.00 | % | 12/21/16 | 2,576,567 | 2,584,077 | |||||||||||
| 5,858,949 | ||||||||||||||||
| Wireless Telecommunication Services–3.34% | ||||||||||||||||
| Asurion Corp. | ||||||||||||||||
| First Lien Term Loan | 5.50 | % | 05/24/18 | 6,103,338 | 6,097,784 | |||||||||||
Second Lien Term Loan(e) | — | 05/24/19 | 732,718 | 747,713 | ||||||||||||
| Cellular South, Inc., Term Loan B | 4.50 | % | 07/27/17 | 2,110,877 | 2,105,599 | |||||||||||
| FairPoint Communications, Inc., Term Loan | 6.50 | % | 01/22/16 | 2,305,734 | 1,956,600 | |||||||||||
| MetroPCS Communications, Inc., Term Loan B3 | 4.00-4.06 | % | 03/17/18 | 9,211,890 | 9,177,346 | |||||||||||
| RCN Corp., Term Loan | 6.50 | % | 08/26/16 | 3,806,425 | 3,791,104 | |||||||||||
| Securus Technologies, Inc., Term Loan B | 5.25 | % | 05/31/17 | 1,730,003 | 1,713,793 | |||||||||||
| U.S. TelePacific, Term Loan B | 5.75 | % | 02/23/17 | 2,304,135 | 2,194,689 | |||||||||||
| 27,784,628 | ||||||||||||||||
| Total Senior Secured Floating Rate Interest Loans (Cost $770,029,495) | 763,961,699 | |||||||||||||||
| Bonds and Notes–6.80% | ||||||||||||||||
| Agricultural Products–0.11% | ||||||||||||||||
Post Holdings Inc., Sr. Unsec. Notes(g) | 7.38 | % | 02/15/22 | 883,000 | 947,018 | |||||||||||
| Airlines–0.06% | ||||||||||||||||
Continental Airlines, Inc., Sr. Sec. Gtd. Notes(g) | 6.75 | % | 09/15/15 | 460,000 | 468,050 | |||||||||||
| Broadcasting–0.50% | ||||||||||||||||
Cequel Communications, LLC, Sr. Unsec. Notes(g) | 8.63 | % | 11/15/17 | 1,766,000 | 1,907,280 | |||||||||||
| CCO Holdings LLC/CCO Holdings Capital Corp., Sr. Unsec. Gtd. Notes | 6.63 | % | 01/31/22 | 878,000 | 943,850 | |||||||||||
UPCB Finance V Ltd. (Cayman Islands), Sr. Unsec. Gtd. Notes(g) | 7.25 | % | 11/15/21 | 1,074,000 | 1,125,713 | |||||||||||
UPCB Finance VI Ltd. (Cayman Islands), Sr. Sec. Notes(g) | 6.88 | % | 01/15/22 | 173,000 | 179,698 | |||||||||||
| 4,156,541 | ||||||||||||||||
| Commodity Chemicals–0.17% | ||||||||||||||||
| Lyondell Chemical Co. Sr. Sec. Gtd. Notes | 11.00 | % | 05/01/18 | 1,308,650 | 1,436,243 | |||||||||||
| Communications Equipment–0.25% | ||||||||||||||||
Goodman Networks, Inc., Sr. Sec. Notes(g) | 12.13 | % | 07/01/18 | 2,050,000 | 2,096,125 | |||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
18 Invesco Floating Rate Fund
| Interest | Maturity | Principal | ||||||||||||||
| Rate | Date | Amount | Value | |||||||||||||
| Diversified Chemicals–0.06% | ||||||||||||||||
Ineos Finance PLC (United Kingdom), Sr. Sec. Gtd. Bonds(g) | 8.38 | % | 02/15/19 | $ | 241,000 | $ | 257,870 | |||||||||
Taminco Global Chemical Corp., Sr. Sub. Gtd. Sub. Notes(g) | 9.75 | % | 03/31/20 | 226,000 | 236,170 | |||||||||||
| 494,040 | ||||||||||||||||
| Healthcare Equipment–0.60% | ||||||||||||||||
| Accellent Inc., Sr. Sec. Gtd. Global Notes | 8.38 | % | 02/01/17 | 1,688,000 | 1,723,870 | |||||||||||
| Apria Healthcare Group, Inc., Sr. Sec. Gtd. Global Notes | 11.25 | % | 11/01/14 | 3,075,000 | 3,259,500 | |||||||||||
| 4,983,370 | ||||||||||||||||
| Hotels, Resorts & Cruise Lines–0.04% | ||||||||||||||||
Chester Downs & Marina LLC, Sr. Sec. Gtd. Notes(g) | 9.25 | % | 02/01/20 | 331,000 | 347,550 | |||||||||||
| Household Products–0.61% | ||||||||||||||||
Reynolds Group Holdings Ltd., Sr. Sec. Notes(g) | 7.88 | % | 08/15/19 | 3,924,000 | 4,306,590 | |||||||||||
Sr. Unsec. Notes(g) | 9.88 | % | 08/15/19 | 743,000 | 774,577 | |||||||||||
| 5,081,167 | ||||||||||||||||
| Independent Power Producers & Energy Traders–1.62% | ||||||||||||||||
| Calpine Corp., | ||||||||||||||||
Sr. Sec. Gtd. Notes(g) | 7.50 | % | 02/15/21 | 2,577,695 | 2,803,243 | |||||||||||
Sr. Sec. Gtd. Notes(g) | 7.88 | % | 01/15/23 | 1,998,258 | 2,193,088 | |||||||||||
Sr. Sec. Notes(g) | 7.25 | % | 10/15/17 | 3,498,000 | 3,725,370 | |||||||||||
NRG Energy, Inc., Sr. Unsec. Gtd. Global Notes(g) | 7.63 | % | 05/15/19 | 4,698,000 | 4,698,000 | |||||||||||
| 13,419,701 | ||||||||||||||||
| Integrated Telecommunication Services–0.47% | ||||||||||||||||
| Paetec Holding Corp., Sr. Sec. Gtd. Global Notes | 8.88 | % | 06/30/17 | 578,000 | 634,355 | |||||||||||
| Sr. Unsec. Gtd. Global Notes | 9.88 | % | 12/01/18 | 1,515,000 | 1,693,013 | |||||||||||
Windstream Corp., Sr. Unsec. Gtd. Notes(g) | 7.50 | % | 06/01/22 | 1,484,000 | 1,576,750 | |||||||||||
| 3,904,118 | ||||||||||||||||
| Metal & Glass Containers–0.51% | ||||||||||||||||
Berry Plastics Holding Corp., Sec. Gtd. Floating Rate Global Notes(h) | 4.42 | % | 09/15/14 | 996,000 | 958,650 | |||||||||||
Sr. Sec. Gtd. Floating Rate Global Notes(h) | 5.32 | % | 02/15/15 | 3,246,000 | 3,254,927 | |||||||||||
| 4,213,577 | ||||||||||||||||
| Oil & Gas Refining & Marketing–0.39% | ||||||||||||||||
Coffeyville Resources LLC, Sr. Sec. Gtd. Notes(g) | 9.00 | % | 04/01/15 | 3,059,000 | 3,273,130 | |||||||||||
| Oil & Gas Storage & Transportation–0.11% | ||||||||||||||||
Targa Resources Partners L.P./Targa Resources Partners Finance Corp., Sr. Unsec. Gtd. Notes(g) | 6.38 | % | 08/01/22 | 865,000 | 916,900 | |||||||||||
| Paper Products–0.30% | ||||||||||||||||
| Verso Paper Holdings, LLC, Series B, Sr. Sec. Gtd. Floating Rate Global Notes | 4.30 | % | 08/01/14 | 228,000 | 159,600 | |||||||||||
Sr. Sec. Global Notes(h) | 11.50 | % | 07/01/14 | 2,277,000 | 2,336,771 | |||||||||||
| 2,496,371 | ||||||||||||||||
| Tires & Rubber–0.10% | ||||||||||||||||
| Goodyear Tire & Rubber Co., (The) Sr. Unsec. Gtd. Notes | 7.00 | % | 05/15/22 | 797,000 | 813,936 | |||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
19 Invesco Floating Rate Fund
| Interest | Maturity | Principal | ||||||||||||||
| Rate | Date | Amount | Value | |||||||||||||
| Trading Companies & Distributors–0.48% | ||||||||||||||||
Air Lease Corp. Sr. Unsec. Notes(g) | 7.38 | % | 01/30/19 | $ | 4,045,000 | $ | 3,969,156 | |||||||||
UR Financing Escrow Corp., Sec. Gtd. Notes(g) | 5.75 | % | 07/15/18 | 1 | 1 | |||||||||||
Sr. Unsec. Notes(g) | 7.38 | % | 05/15/20 | 1 | 1 | |||||||||||
| 3,969,158 | ||||||||||||||||
| Trucking–0.06% | ||||||||||||||||
| Avis Budget Car Rental, LLC, Sr. Unsec. Gtd. Global Notes | 9.63 | % | 03/15/18 | 434,000 | 476,315 | |||||||||||
| Wireless Telecommunication Services–0.36% | ||||||||||||||||
Wind Acquisition Finance S.A. (Luxembourg), Sr. Sec. Gtd. Notes(g) | 7.25 | % | 02/15/18 | 3,019,000 | 2,973,715 | |||||||||||
| Total Bonds and Notes (Cost $54,109,525) | 56,467,025 | |||||||||||||||
| Structured Products–2.12% | ||||||||||||||||
Apidos Cinco CDO Ltd., Series 2007-CX, Class D, Sub. Floating Rate Notes(g)(h) | 4.76 | % | 05/14/20 | 345,000 | 231,248 | |||||||||||
Apidos Quattro CDO Ltd., Series 2006-QA, Class E, Jr. Sub. Floating Rate Notes(g)(h) | 4.16 | % | 01/20/19 | 408,000 | 280,696 | |||||||||||
Ares XI CLO Ltd. (Cayman Islands), Series 2007-A, Class D, Mezzanine Floating Rate Notes(g)(h) | 3.58 | % | 10/11/21 | 724,000 | 520,047 | |||||||||||
Atrium CDO, Series 4A, Class D2, Sub. Bonds(g) | 9.18 | % | 06/08/19 | 205,000 | 177,033 | |||||||||||
Banc of America Large Loan Inc., Series 2010, Class HLTN, Floating Rate Pass Through Ctfs.(g)(h) | 2.00 | % | 11/15/15 | 9,597,223 | 8,964,329 | |||||||||||
Columbus Nova CLO Ltd., Series 2007-1A, Class E, Mezzanine Floating Rate Notes(g)(h) | 4.10 | % | 05/16/19 | 1,093,000 | 715,036 | |||||||||||
Flagship CLO VI, Series 2007-1A, Class E, Mezzanine Floating Rate Notes(g)(h) | 5.29 | % | 06/10/21 | 2,140,295 | 1,476,455 | |||||||||||
Four Corners CLO II, Ltd., Series 2006-2A, Class D, Deferrable Floating Rate Notes(g)(h) | 2.41 | % | 01/26/20 | 413,000 | 307,297 | |||||||||||
Halcyon Loan Investors CLO Ltd., Series 2007-2A, Class D, Mezzanine Floating Rate Notes(g)(h) | 4.16 | % | 04/24/21 | 917,000 | 610,326 | |||||||||||
ING Investment Management CLO III Ltd., Series 2006-3A, Class D, Sub. Floating Rate Notes(g)(h) | 4.07 | % | 12/13/20 | 1,188,000 | 800,597 | |||||||||||
ING Investment Management CLO IV Ltd., Series 2007-4A, Class D, Floating Rate Notes(g)(h) | 4.81 | % | 06/14/22 | 293,000 | 199,556 | |||||||||||
Madison Park Funding I Ltd., Series 2007-4A, Class E, Sub. Floating Rate Notes(g)(h) | 4.17 | % | 03/22/21 | 1,344,106 | 942,195 | |||||||||||
Pacifica CDO Ltd., Series 2006-6A, Class D, Sub. Floating Rate Notes(g)(h) | 4.26 | % | 08/15/21 | 565,000 | 364,453 | |||||||||||
Sierra CLO Ltd., Series 2006-2A, Class B2L, Sub. Floating Rate Notes(h) | 4.06 | % | 01/22/21 | 733,000 | 489,073 | |||||||||||
Silverado CLO Ltd., Series 2006-2A, Class D, Sub. Floating Rate Notes(g)(h) | 4.32 | % | 10/16/20 | 886,000 | 612,380 | |||||||||||
Symphony CLO VIII Ltd., Series 2012, Class A, Sr. Floating Rate Notes(g)(h) | 6.51 | % | 01/09/23 | 1,035,000 | 910,516 | |||||||||||
| Total Structured Products (Cost $18,190,383) | 17,601,237 | |||||||||||||||
| Shares | ||||||||||||||||
| Common Stocks & Other Equity Interests–1.41% | ||||||||||||||||
| Aerospace & Defense–0.07% | ||||||||||||||||
ACTS Aero Technical Support & Services, Inc.(i) | 122,977 | 553,398 | ||||||||||||||
| Auto Parts & Equipment–0.02% | ||||||||||||||||
Dayco Products, LLC(i) | 856 | 29,104 | ||||||||||||||
Dayco Products, LLC(i) | 3,261 | 110,874 | ||||||||||||||
| 139,978 | ||||||||||||||||
| Broadcasting–0.38% | ||||||||||||||||
ION Media Networks, Inc.(i) | 4,471 | 3,129,700 | ||||||||||||||
New Vision Television, Class A, Wts., expiring 09/30/14(i) | 5,707 | 0 | ||||||||||||||
New Vision Television, Class B, Wts., expiring 09/30/14(i) | 1,027 | 0 | ||||||||||||||
| 3,129,700 | ||||||||||||||||
| Building Products–0.17% | ||||||||||||||||
Masonite Worldwide Holdings (Canada)(i) | 53,093 | 1,420,238 | ||||||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
20 Invesco Floating Rate Fund
| Shares | Value | |||||||||||||||
| Casinos & Gaming–0.02% | ||||||||||||||||
BLB Worldwide Holdings, Inc.(i) | 18,663 | $ | 174,182 | |||||||||||||
| Commodity Chemicals–0.47% | ||||||||||||||||
LyondellBasell Industries N.V. (Netherlands)–Class A(i) | 89,865 | 3,880,371 | ||||||||||||||
| Construction & Engineering–0.00% | ||||||||||||||||
United Subcontractors, Inc.(i) | 4,587 | 9,173 | ||||||||||||||
| Diversified Real Estate Activities–0.00% | ||||||||||||||||
Lake Las Vegas Resort Class A,(i) | 518 | 36,264 | ||||||||||||||
Lake Las Vegas Resort Class B,(i) | 4 | 289 | ||||||||||||||
Lake Las Vegas Resort Warrant C, expiring 07/15/15,(i) | 17 | 0 | ||||||||||||||
Lake Las Vegas Resort Warrant D, expiring 07/15/15,(i) | 24 | 0 | ||||||||||||||
Lake Las Vegas Resort Warrant E, expiring 07/15/15,(i) | 27 | 0 | ||||||||||||||
Lake Las Vegas Resort Warrant F, expiring 07/15/15,(i) | 30 | 0 | ||||||||||||||
Lake Las Vegas Resort Warrant G, expiring 07/15/15,(i) | 34 | 0 | ||||||||||||||
| 36,553 | ||||||||||||||||
| Diversified Support Services–0.00% | ||||||||||||||||
Bankruptcy Management Solutions, Inc.(i) | 214 | 4 | ||||||||||||||
Bankruptcy Management Solutions, Inc., Wts., expiring 10/01/17(i) | 18 | 0 | ||||||||||||||
| 4 | ||||||||||||||||
| Environmental & Facilities Services–0.23% | ||||||||||||||||
Safety-Kleen Systems, Inc.(i)(j) | 150,812 | 1,904,002 | ||||||||||||||
| Integrated Telecommunication Services–0.02% | ||||||||||||||||
FairPoint Communications Inc.(i) | 44,928 | 168,929 | ||||||||||||||
| Marine–0.00% | ||||||||||||||||
US Shipping LLC(i) | 87,805 | 0 | ||||||||||||||
US Shipping LLC(i) | 6,189 | 0 | ||||||||||||||
| 0 | ||||||||||||||||
| Oil & Gas Storage & Transportation–0.02% | ||||||||||||||||
SemGroup Corp.(i) | 6,668 | 189,171 | ||||||||||||||
| Paper Products–0.00% | ||||||||||||||||
Xerium Technologies, Inc.(i) | 1,766 | 14,163 | ||||||||||||||
| Publishing–0.00% | ||||||||||||||||
Endurance Business Media, Inc.(i) | 124 | 1,235 | ||||||||||||||
F&W Publications, Inc.(i) | 288 | 36 | ||||||||||||||
F&W Publications, Inc., Wts., expiring 12/09/17(i) | 496 | 62 | ||||||||||||||
| 1,333 | ||||||||||||||||
| Specialty Chemicals–0.01% | ||||||||||||||||
MetoKote Corporation, Inc., Wts., expiring 11/22/23(i) | 61 | 63,590 | ||||||||||||||
| Total Common Stocks & Other Equity Interests (Cost $17,848,279) | 11,684,785 | |||||||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
21 Invesco Floating Rate Fund
| Shares | Value | |||||||||||||||
| Money Market Funds–1.69% | ||||||||||||||||
Liquid Assets Portfolio–Institutional Class(k) | 7,044,568 | $ | 7,044,568 | |||||||||||||
Premier Portfolio–Institutional Class(k) | 7,044,567 | 7,044,567 | ||||||||||||||
| Total Money Market Funds (Cost $14,089,135) | 14,089,135 | |||||||||||||||
| TOTAL INVESTMENTS–103.98% (Cost $874,266,817) | 863,803,881 | |||||||||||||||
| OTHER ASSETS LESS LIABILITIES–(3.98%) | (33,087,742 | ) | ||||||||||||||
| NET ASSETS–100.00% | $ | 830,716,139 | ||||||||||||||
Investment Abbreviations:
| CDO | – Collateralized Debt Obligation | |
| CLO | – Collateralized Loan Obligation | |
| Ctfs. | – Certificates | |
| DIP | – Debtor-in-possession | |
| Gtd. | – Guaranteed | |
| Jr. | – Junior | |
| LOC | – Line of Credit | |
| REIT | – Real Estate Investment Trust | |
| Sec. | – Secured | |
| Sr. | – Senior | |
| Sub. | – Subordinated | |
| Syn LOC | – Synthetic Letter of Credit | |
| Unsec. | – Unsecured | |
| Wts. | – Warrants |
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) | Senior secured corporate loans and senior secured debt securities are, at present, not readily marketable, not registered under the Securities Act of 1933, as amended and may be subject to contractual and legal restrictions on sale. Senior secured corporate loans and senior secured debt securities in the Fund’s portfolio generally have variable rates which adjust to a base, such as the London Inter-Bank Offered Rate (“LIBOR”), on set dates, typically every 30 days but not greater than one year; and/or have interest rates that float at a margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank. | |
| (c) | Senior secured floating rate interests often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the senior secured floating rate interests will have an expected average life of three to five years. | |
| (d) | All or a portion of this holding is subject to unfunded loan commitments. See Note 7. | |
| (e) | This floating rate interest will settle after February 29, 2012, at which time the interest rate will be determined. | |
| (f) | Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The aggregate value of these securities at February 29, 2012 was $10,306,190, which represented 1.24% of the Trust’s Net Assets | |
| (g) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at February 29, 2012 was $55,611,965, which represented 6.69% of the Trust’s Net Assets. | |
| (h) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 29, 2012. | |
| (i) | Non-income producing security. | |
| (j) | Acquired as part of a bankruptcy restructuring. | |
| (k) | The money market fund and the Fund are affiliated by having the same investment adviser. |
By credit quality rating, based on total investments
as of February 29, 2012
| Baa2 | 1.9 | % | ||
| Baa3 | 1.2 | |||
| Ba1 | 5.6 | |||
| Ba2 | 9.4 | |||
| Ba3 | 25.4 | |||
| B1 | 23.1 | |||
| B2 | 9.1 | |||
| B3 | 6.8 | |||
| CAA1 | 3.3 | |||
| CAA2 | 0.9 | |||
| CAA3 or lower | 0.3 | |||
| Not-Rated | 9.9 | |||
| Equity | 1.4 | |||
| Money Market Funds | 1.7 | |||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
22 Invesco Floating Rate Fund
Statement of Assets and Liabilities
February 29, 2012
(Unaudited)
| Assets: | ||||
| Investments, at value (Cost $860,177,682) | $ | 849,714,746 | ||
| Investments in affiliated money market funds, at value and cost | 14,089,135 | |||
| Total investments, at value (Cost $874,266,817) | 863,803,881 | |||
| Cash | 16,463,053 | |||
| Receivable for: | ||||
| Investments sold | 19,632,534 | |||
| Fund shares sold | 2,018,160 | |||
| Dividends and interest | 4,201,743 | |||
| Investments matured | 120,283 | |||
| Investment for trustee deferred compensation and retirement plans | 31,838 | |||
| Other assets | 216,194 | |||
| Total assets | 906,487,686 | |||
| Liabilities: | ||||
| Payable for: | ||||
| Investments purchased | 72,359,525 | |||
| Fund shares reacquired | 2,003,439 | |||
| Dividends | 940,930 | |||
| Accrued fees to affiliates | 378,688 | |||
| Trustee deferred compensation and retirement plans | 88,965 | |||
| Total liabilities | 75,771,547 | |||
| Net assets applicable to shares outstanding | $ | 830,716,139 | ||
| Net assets consist of: | ||||
| Shares of beneficial interest | $ | 870,291,364 | ||
| Undistributed net investment income | 346,256 | |||
| Undistributed net realized gain (loss) | (29,458,545 | ) | ||
| Unrealized appreciation (depreciation) | (10,462,936 | ) | ||
| $ | 830,716,139 | |||
| Net Assets: | ||||
| Class A | $ | 394,526,038 | ||
| Class C | $ | 252,278,660 | ||
| Class R | $ | 1,525,600 | ||
| Class Y | $ | 129,161,118 | ||
| Institutional Class | $ | 53,224,723 | ||
| Shares outstanding, $0.01 par value per share, with an unlimited number of shares authorized: | ||||
| Class A | 51,416,226 | |||
| Class C | 33,026,334 | |||
| Class R | 198,418 | |||
| Class Y | 16,860,556 | |||
| Institutional Class | 6,934,989 | |||
| Class A: | ||||
| Net asset value per share | $ | 7.67 | ||
| Maximum offering price per share (Net asset value of $7.67 divided by 97.50%) | $ | 7.87 | ||
| Class C: | ||||
| Net asset value and offering price per share | $ | 7.64 | ||
| Class R: | ||||
| Net asset value and offering price per share | $ | 7.69 | ||
| Class Y: | ||||
| Net asset value and offering price per share | $ | 7.66 | ||
| Institutional Class: | ||||
| Net asset value and offering price per share | $ | 7.67 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
23 Invesco Floating Rate Fund
Statement of Operations
For the six months ended February 29, 2012
(Unaudited)
| Investment income: | ||||
| Interest | $ | 23,845,832 | ||
| Dividends (net of foreign withholding taxes of $64,029) | 362,830 | |||
| Dividends from affiliated money market funds | 12,598 | |||
| Total investment income | 24,221,260 | |||
| Expenses: | ||||
| Advisory fees | 2,648,342 | |||
| Administrative services fees | 116,645 | |||
| Custodian fees | 18,567 | |||
| Distribution fees: | ||||
| Class A | 525,204 | |||
| Class C | 958,669 | |||
| Class R | 3,638 | |||
| Interest, facilities and maintenance fees | 83,667 | |||
| Transfer agent fees — A, C, R and Y | 464,015 | |||
| Transfer agent fees — Institutional | 279 | |||
| Trustees’ and officers’ fees and benefits | 38,941 | |||
| Other | 165,428 | |||
| Total expenses | 5,023,395 | |||
| Less: Fees waived and expense offset arrangement(s) | (18,096 | ) | ||
| Net expenses | 5,005,299 | |||
| Net investment income | 19,215,961 | |||
| Realized and unrealized gain (loss) from: | ||||
| Net realized gain (loss) from investment securities | (783,558 | ) | ||
| Change in net unrealized appreciation of investment securities | 36,185,279 | |||
| Net realized and unrealized gain | 35,401,721 | |||
| Net increase in net assets resulting from operations | $ | 54,617,682 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
24 Invesco Floating Rate Fund
Statement of Changes in Net Assets
For the six months ended February 29, 2012 and the year ended August 31, 2011
(Unaudited)
| February 29, | August 31, | |||||||
| 2012 | 2011 | |||||||
| Operations: | ||||||||
| Net investment income | $ | 19,215,961 | $ | 42,115,867 | ||||
| Net realized gain (loss) | (783,558 | ) | 3,254,086 | |||||
| Change in net unrealized appreciation (depreciation) | 36,185,279 | (32,747,303 | ) | |||||
| Net increase in net assets resulting from operations | 54,617,682 | 12,622,650 | ||||||
| Distributions to shareholders from net investment income: | ||||||||
| Class A | (9,822,000 | ) | (21,622,255 | ) | ||||
| Class C | (5,343,358 | ) | (10,387,775 | ) | ||||
| Class R | (32,206 | ) | (61,928 | ) | ||||
| Class Y | (2,798,342 | ) | (6,645,821 | ) | ||||
| Institutional Class | (1,276,989 | ) | (3,168,407 | ) | ||||
| Total distributions from net investment income | (19,272,895 | ) | (41,886,186 | ) | ||||
| Share transactions–net: | ||||||||
| Class A | (73,940,513 | ) | 106,565,026 | |||||
| Class C | (26,359,031 | ) | 86,405,542 | |||||
| Class R | (27,251 | ) | 456,201 | |||||
| Class Y | (1,348,277 | ) | 37,146,862 | |||||
| Institutional Class | 2,141,427 | 12,014,497 | ||||||
| Net increase (decrease) in net assets resulting from share transactions | (99,533,645 | ) | 242,588,128 | |||||
| Net increase (decrease) in net assets | (64,188,858 | ) | 213,324,592 | |||||
| Net assets: | ||||||||
| Beginning of period | 894,904,997 | 681,580,405 | ||||||
| End of period (includes undistributed net investment income of $346,256 and $403,190, respectively) | $ | 830,716,139 | $ | 894,904,997 | ||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
25 Invesco Floating Rate Fund
Statement of Cash Flows
For the six months ended February 29, 2012
(Unaudited)
| Cash provided by operating activities: | ||||
| Net increase in net assets resulting from operations | $ | 54,617,682 | ||
| Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities: | ||||
| Purchases of investments | (306,863,198 | ) | ||
| Proceeds from disposition of investments and principal payments | 404,567,648 | |||
| Decrease in receivables and other assets | 561,410 | |||
| Amortization of premiums and accretion of discounts on investment securities | (2,804,044 | ) | ||
| Decrease in accrued expenses and other payables | (23,436 | ) | ||
| Net unrealized appreciation on investment securities | (36,185,279 | ) | ||
| Net realized loss from investment securities | 783,558 | |||
| Net cash provided by operating activities | 114,654,341 | |||
| Cash provided by (used in) financing activities: | ||||
| Dividends paid to shareholders from net investment income | (7,631,704 | ) | ||
| Proceeds from shares of beneficial interest sold | 107,727,492 | |||
| Disbursements from shares of beneficial interest reacquired | (222,063,839 | ) | ||
| Net cash provided by (used in) financing activities | (121,968,051 | ) | ||
| Net decrease in cash and cash equivalents | (7,313,710 | ) | ||
| Cash and cash equivalents at beginning of period | 37,865,898 | |||
| Cash and cash equivalents at end of period | $ | 30,552,188 | ||
| Non-cash financing activities: | ||||
| Value of shares of beneficial interest issued in reinvestment of dividends paid to shareholders | $ | 13,012,770 | ||
Supplemental disclosure of cash flow information: | ||||
| Cash paid during the six months ended February 29, 2012 for interest, facilities and maintenance fees was $134,312. | ||||
Notes to Financial Statements
February 29, 2012
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco Floating Rate Fund (the “Fund”), is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (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 twelve 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 total return, comprised of current income and capital appreciation.
The Fund currently consists of five different classes of shares: Class A, Class C, Class R, Class Y and Institutional Class. 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 and Institutional Class shares are sold at net asset value.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
| A. | Security Valuations — Senior secured floating rate loans and senior secured floating rate debt securities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may reflect appropriate factors such as ratings, tranche type, industry, company performance, spread, individual trading characteristics, institution-size trading in similar groups of securities and other market data. | |
| Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales 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 (but not securities reported on the NASDAQ Stock Exchange) are valued based on the prices furnished by independent pricing services, in which case the securities |
26 Invesco Floating Rate Fund
| may be considered fair valued, or by market makers. Each security reported on the NASDAQ Stock Exchange is valued at the NASDAQ Official Closing Price (“NOCP”) as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price. | ||
| 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 the ask 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 ask prices. For purposes of determining net asset value 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 bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. | ||
| Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance. | ||
| Foreign securities (including foreign exchange contracts) 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 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 trade is not the current value as of the close of the NYSE. Foreign securities 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 are 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/ask 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. | ||
| 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. | ||
| B. | Securities Transactions and Investment Income — Securities transaction 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 is recorded on the accrual basis from the settlement date. Facility fees received may be amortized over the life of the loan. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes. | |
| 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 Statement of Changes in Net Assets, or the net investment income per share and 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 realized and unrealized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class. | ||
| C. | 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 |
27 Invesco Floating Rate Fund
| 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 income are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. | |
| E. | Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of 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 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. | ||
| F. | 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 the Institutional Class are charged to such 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. | |
| G. | 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. | |
| H. | 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 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. | |
| I. | Other Risks — The Fund may invest all or substantially of its assets in senior secured floating rate loans, senior secured debt securities or other securities rated below investment grade. These securities are generally considered to have speculative characteristics and are subject to greater risk of loss of principal and interest than higher rated securities. The value of lower quality debt securities and floating rate loans can be more volatile due to increased sensitivity to adverse issuer, political, regulatory, market or economic developments. | |
| The Fund invests in Corporate Loans from U.S. or non-U.S. companies (the “Borrowers”). The investment of the Fund in a Corporate Loan may take the form of participation interests or assignments. If the Fund purchases a participation interest from a syndicate of lenders (“Lenders”) or one of the participants in the syndicate (“Participant”), one or more of which administers the loan on behalf of all the Lenders (the “Agent Bank”), the Fund would be required to rely on the Lender that sold the participation interest not only for the enforcement of the Fund’s rights against the Borrower but also for the receipt and processing of payments due to the Fund under the Corporate Loans. As such, the Fund is subject to the credit risk of the Borrower and the Participant. Lenders and Participants interposed between the Fund and a Borrower, together with Agent Banks, are referred to as “Intermediate Participants”. | ||
| J. | Bank Loan Risk Disclosures — Although the resale, or secondary market for floating rate loans has grown substantially over the past decade, both in overall size and number of market participants, there is no organized exchange or broad of trade on which floating rate loans are traded. Instead, the secondary market for floating rate loans is a private, unregulated interdealer or interbank resale market. Such a market may therefore be subject to irregular trading activity, wide bid/ask spreads, and extended trade settlement periods. Similar to other asset classes, bank loan funds may be exposed to counterparty credit risk, or the risk than an entity with which the Fund has unsettled or open transactions may fail to or be unable to perform on its commitments. The Fund manages counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. | |
| K. | Redemption Fees — The Fund has a 2% redemption fee that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee is recorded as an increase in shareholder capital and is allocated among the share classes based on the relative net assets of each class. Effective January 1, 2012, the Fund eliminated the 2% redemption fee, if applicable, assessed on shares of the Fund redeemed or exchanged within 31 days of purchase. | |
| L. | Cash and Cash Equivalents — For the purposes of the Statement of Cash Flows the Fund defines Cash and Cash Equivalents as cash (including foreign currency), money market funds and other investments held in lieu of cash and excludes investments made with cash collateral received. | |
| M. | Securities Purchased on a When-Issued and Delayed Delivery Basis — The Fund may purchase and sell interests in Corporate Loans and Corporate Debt Securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date. |
28 Invesco Floating Rate Fund
| N. | Interest, Facilities and Maintenance Fees — Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees and other expenses associated with lines of credit and interest and administrative expenses related to establishing and maintaining floating rate note obligations, if any. |
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 pays 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 $500 million | 0 | .65% | ||
| Next $4.5 billion | 0 | .60% | ||
| Next $5 billion | 0 | .575% | ||
| Over $10 billion | 0 | .55% | ||
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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).
The Adviser has contractually agreed, through at least December 31, 2012, 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 reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y and Institutional Class shares to 1.50%, 2.00%, 1.75%, 1.25% and 1.25% of average daily net assets. 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 reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (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 the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on December 31, 2011. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.
Further, the Adviser has contractually agreed, through at least June 30, 2012, 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 six months ended February 29, 2012, the Adviser waived advisory fees of $17,351.
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 six months ended February 29, 2012, 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 are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 29, 2012, 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 C, Class R, Class Y and Institutional Class 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 C and Class R 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, 0.75% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. 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 six months ended February 29, 2012, 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 six months ended February 29, 2012, IDI advised the Fund that IDI retained $21,395 in front-end sales commissions from the sale of Class A shares and $22,436 and $49,643 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
29 Invesco Floating Rate Fund
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 February 29, 2012. 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.
During the six months ended February 29, 2012, there were no significant transfers between investment levels.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Equity Securities | $ | 19,762,007 | $ | 5,911,770 | $ | 100,143 | $ | 25,773,920 | ||||||||
| Corporate Debt Securities | — | 820,428,724 | — | 820,428,724 | ||||||||||||
| Asset-Backed Securities | — | 17,601,237 | — | 17,601,237 | ||||||||||||
| Total Investments | $ | 19,762,007 | $ | 843,941,731 | $ | 100,143 | $ | 863,803,881 | ||||||||
NOTE 4—Expense Offset Arrangement(s)
The expense offset arrangements are comprised of (1) transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions and (2) custodian credits which result from periodic overnight cash balances at the custodian. For the six months ended February 29, 2012, the Fund received credits from these arrangements, which resulted in the reduction of the Fund’s total expenses of $745.
NOTE 5—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 are eligible to participate in a retirement plan that provides 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.
During the six months ended February 29, 2012, the Fund paid legal fees of $0 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.
NOTE 6—Borrowings
On September 20, 2011, the Board of Trustees of the Fund approved a credit agreement with State Street Bank and Trust Company (“SSB”) in which the Fund may borrow up to the lesser of (1) $150,000,000 or (2) the limits set by its prospectus for borrowings. This agreement will expire on September 18, 2012. Prior to September 20, 2011, the Fund was party to a committed line of credit with JPMorgan Chase Bank.
Also, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, 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.
30 Invesco Floating Rate Fund
NOTE 7—Unfunded Loan Commitments
As of February 29, 2012, the Fund had unfunded loan commitments, which could be extended at the option of the borrower, pursuant to the following loan agreements with the following borrowers:
| Principal | ||||||||||
| Borrower | Amount | Value | ||||||||
| Bausch & Lomb, Inc. | Revolver Loan | $ | 1,800,000 | $ | 1,705,500 | |||||
| Delta Air Lines, Inc. | Revolver Loan | 1,500,000 | 1,455,750 | |||||||
| General Motors Co. LLC | Revolver Loan | 8,254,240 | 7,434,016 | |||||||
| Key Safety Systems, Inc. | Revolver Loan | 70,758 | 66,113 | |||||||
| Lake Las Vegas Resort | Revolver Loan | 20,888 | 20,679 | |||||||
| Pinnacle Foods Group, Inc. (Aurora Foods) | Revolver Loan | 1,000,000 | 922,500 | |||||||
| DS Waters of America, Inc. | Term Loan | 272,093 | 268,919 | |||||||
| Tronox Inc. | Delay Draw Term Loan | 241,837 | 242,246 | |||||||
| $ | 13,159,816 | $ | 12,115,723 | |||||||
NOTE 8—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
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. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2011, which expires as follows:
| Capital Loss | ||||
| Expiration | Carryforward* | |||
| August 31, 2012 | $ | 2,745,717 | ||
| August 31, 2013 | 5,482,284 | |||
| August 31, 2014 | 2,498,917 | |||
| August 31, 2016 | 1,685,685 | |||
| August 31, 2017 | 13,482,530 | |||
| Total capital loss carryforward | $ | 25,895,133 | ||
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. |
NOTE 9—Investment Securities
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 six months ended February 29, 2012 was $317,582,633 and $345,723,494, respectively. Cost of investments 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 Investment Securities on a Tax Basis | ||||
| Aggregate unrealized appreciation of investment securities | $ | 13,837,675 | ||
| Aggregate unrealized (depreciation) of investment securities | (27,004,211 | ) | ||
| Net unrealized appreciation (depreciation) of investment securities | $ | (13,166,536 | ) | |
| Cost of investments for tax purposes is $876,970,417. | ||||
31 Invesco Floating Rate Fund
NOTE 10—Share Information
| Summary of Share Activity | ||||||||||||||||
| Six months ended | Year ended | |||||||||||||||
| February 29, 2012(a) | August 31, 2011 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Sold: | ||||||||||||||||
| Class A | 6,459,612 | $ | 48,562,667 | 51,924,957 | $ | 402,865,246 | ||||||||||
| Class C | 2,178,046 | 16,313,765 | 20,380,816 | 157,385,082 | ||||||||||||
| Class R | 28,785 | 216,584 | 109,739 | 849,859 | ||||||||||||
| Class Y | 4,838,781 | 36,809,462 | 17,975,403 | 139,258,574 | ||||||||||||
| Institutional Class | 891,527 | 6,691,212 | 8,017,545 | 61,791,412 | ||||||||||||
| Issued as reinvestment of dividends: | ||||||||||||||||
| Class A | 898,726 | 6,790,386 | 2,102,175 | 16,229,673 | ||||||||||||
| Class C | 480,549 | 3,614,097 | 947,654 | 7,276,456 | ||||||||||||
| Class R | 3,810 | 28,793 | 7,276 | 56,294 | ||||||||||||
| Class Y | 175,589 | 1,326,889 | 365,792 | 2,813,264 | ||||||||||||
| Institutional Class | 166,065 | 1,252,605 | 339,446 | 2,621,455 | ||||||||||||
Reacquired:(b) | ||||||||||||||||
| Class A | (17,222,685 | ) | (129,293,566 | ) | (40,848,669 | ) | (312,529,893 | ) | ||||||||
| Class C | (6,203,987 | ) | (46,286,893 | ) | (10,289,375 | ) | (78,255,996 | ) | ||||||||
| Class R | (36,501 | ) | (272,628 | ) | (58,867 | ) | (449,952 | ) | ||||||||
| Class Y | (5,298,945 | ) | (39,484,628 | ) | (13,724,851 | ) | (104,924,976 | ) | ||||||||
| Institutional Class | (778,361 | ) | (5,802,390 | ) | (6,729,184 | ) | (52,398,370 | ) | ||||||||
| Net increase (decrease) in share activity | (13,418,989 | ) | $ | (99,533,645 | ) | 30,519,857 | $ | 242,588,128 | ||||||||
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 53% 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 Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. | |
| (b) | Net of redemption fees of $21,839 and $122,957 allocated among the classes based on relative net assets of each class for the six months ended February 29, 2012 and the year ended August 31, 2011, respectively. |
32 Invesco Floating Rate Fund
NOTE 11—Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||
| Ratio of | expenses | |||||||||||||||||||||||||||||||||||||||||||||||
| Net gains | expenses | to average net | ||||||||||||||||||||||||||||||||||||||||||||||
| (losses) on | to average | assets without | Ratio of net | |||||||||||||||||||||||||||||||||||||||||||||
| Net asset | securities | Dividends | net assets | fee waivers | investment | |||||||||||||||||||||||||||||||||||||||||||
| value, | Net | (both | Total from | from net | Net asset | Net assets, | with fee waivers | and/or | income to | |||||||||||||||||||||||||||||||||||||||
| beginning | investment | realized and | investment | investment | value, end | Total | end of period | and/or expenses | expenses | average | Portfolio | |||||||||||||||||||||||||||||||||||||
| of period | income(a) | unrealized) | operations | income | of period(b) | return(c) | (000s omitted) | absorbed | absorbed | net assets | turnover(d) | |||||||||||||||||||||||||||||||||||||
| Class A | ||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | $ | 7.36 | $ | 0.17 | $ | 0.31 | $ | 0.48 | $ | (0.17 | ) | $ | 7.67 | 6.65 | % | $ | 394,526 | 1.10 | %(e)(f) | 1.10 | %(e)(f) | 4.66 | %(e) | 38 | % | |||||||||||||||||||||||
| Year ended 08/31/11 | 7.47 | 0.35 | (0.11 | ) | 0.24 | (0.35 | ) | 7.36 | 3.07 | 450,750 | 0.99 | (f) | 1.00 | (f) | 4.53 | 152 | ||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 7.09 | 0.40 | 0.39 | (g) | 0.79 | (0.41 | ) | 7.47 | 11.28 | (g) | 359,476 | 1.12 | (f) | 1.14 | (f) | 5.34 | 106 | |||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 7.99 | 0.41 | (0.89 | ) | (0.48 | ) | (0.42 | ) | 7.09 | (4.97 | ) | 218,448 | 1.24 | (f) | 1.25 | (f) | 6.50 | 52 | ||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 8.67 | 0.53 | (0.68 | ) | (0.15 | ) | (0.53 | ) | 7.99 | (1.80 | ) | 141,803 | 1.36 | (f) | 1.37 | (f) | 6.36 | 66 | ||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 9.06 | 0.60 | (0.39 | ) | 0.21 | (0.60 | ) | 8.67 | 2.28 | 220,449 | 1.29 | (f) | 1.30 | (f) | 6.65 | 117 | ||||||||||||||||||||||||||||||||
| Class C | ||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 7.32 | 0.15 | 0.33 | 0.48 | (0.16 | ) | 7.64 | 6.55 | 252,279 | 1.60 | (e)(f) | 1.60 | (e)(f) | 4.16 | (e) | 38 | ||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 7.44 | 0.31 | (0.12 | ) | 0.19 | (0.31 | ) | 7.32 | 2.41 | 267,796 | 1.49 | (f) | 1.50 | (f) | 4.03 | 152 | ||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 7.06 | 0.36 | 0.39 | (g) | 0.75 | (0.37 | ) | 7.44 | 10.75 | (g) | 189,966 | 1.62 | (f) | 1.64 | (f) | 4.84 | 106 | |||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 7.97 | 0.38 | (0.90 | ) | (0.52 | ) | (0.39 | ) | 7.06 | (5.61 | ) | 103,975 | 1.74 | (f) | 1.75 | (f) | 6.00 | 52 | ||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 8.65 | 0.48 | (0.68 | ) | (0.20 | ) | (0.48 | ) | 7.97 | (2.31 | ) | 68,452 | 1.86 | (f) | 1.87 | (f) | 5.86 | 66 | ||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 9.04 | 0.56 | (0.39 | ) | 0.17 | (0.56 | ) | 8.65 | 1.76 | 81,479 | 1.79 | (f) | 1.80 | (f) | 6.15 | 117 | ||||||||||||||||||||||||||||||||
| Class R | ||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 7.37 | 0.17 | 0.32 | 0.49 | (0.17 | ) | 7.69 | 6.65 | 1,526 | 1.35 | (e)(f) | 1.35 | (e)(f) | 4.41 | (e) | 38 | ||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 7.49 | 0.33 | (0.12 | ) | 0.21 | (0.33 | ) | 7.37 | 2.68 | 1,491 | 1.24 | (f) | 1.25 | (f) | 4.28 | 152 | ||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 7.10 | 0.39 | 0.39 | (g) | 0.78 | (0.39 | ) | 7.49 | 11.15 | (g) | 1,080 | 1.37 | (f) | 1.39 | (f) | 5.09 | 106 | |||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 8.00 | 0.40 | (0.89 | ) | (0.49 | ) | (0.41 | ) | 7.10 | (5.19 | ) | 427 | 1.49 | (f) | 1.50 | (f) | 6.25 | 52 | ||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 8.66 | 0.51 | (0.66 | ) | (0.15 | ) | (0.51 | ) | 8.00 | (1.81 | ) | 330 | 1.61 | (f) | 1.62 | (f) | 6.11 | 66 | ||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 9.06 | 0.58 | (0.40 | ) | 0.18 | (0.58 | ) | 8.66 | 1.91 | 278 | 1.54 | (f) | 1.55 | (f) | 6.40 | 117 | ||||||||||||||||||||||||||||||||
| Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 7.34 | 0.18 | 0.32 | 0.50 | (0.18 | ) | 7.66 | 6.93 | 129,161 | 0.85 | (e)(f) | 0.85 | (e)(f) | 4.91 | (e) | 38 | ||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 7.46 | 0.37 | (0.12 | ) | 0.25 | (0.37 | ) | 7.34 | 3.19 | 125,900 | 0.74 | (f) | 0.75 | (f) | 4.78 | 152 | ||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 7.07 | 0.42 | 0.39 | (g) | 0.81 | (0.42 | ) | 7.46 | 11.72 | (g) | 93,479 | 0.87 | (f) | 0.89 | (f) | 5.59 | 106 | |||||||||||||||||||||||||||||||
| Year ended 08/31/09(h) | 7.29 | 0.41 | (0.24 | ) | 0.17 | (0.39 | ) | 7.07 | 3.48 | 20,176 | 1.00 | (f)(i) | 1.00 | (f)(i) | 6.74 | (i) | 52 | |||||||||||||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 7.36 | 0.19 | 0.31 | 0.50 | (0.19 | ) | 7.67 | 6.84 | 53,225 | 0.73 | (e)(f) | 0.73 | (e)(f) | 5.03 | (e) | 38 | ||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 7.47 | 0.38 | (0.12 | ) | 0.26 | (0.37 | ) | 7.36 | 3.40 | 48,967 | 0.68 | (f) | 0.69 | (f) | 4.84 | 152 | ||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 7.09 | 0.42 | 0.39 | (g) | 0.81 | (0.43 | ) | 7.47 | 11.65 | (g) | 37,580 | 0.79 | (f) | 0.81 | (f) | 5.67 | 106 | |||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 7.99 | 0.44 | (0.89 | ) | (0.45 | ) | (0.45 | ) | 7.09 | (4.62 | ) | 38,720 | 0.88 | (f) | 0.89 | (f) | 6.86 | 52 | ||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 8.67 | 0.56 | (0.68 | ) | (0.12 | ) | (0.56 | ) | 7.99 | (1.46 | ) | 50,786 | 1.01 | (f) | 1.02 | (f) | 6.71 | 66 | ||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 9.06 | 0.63 | (0.39 | ) | 0.24 | (0.63 | ) | 8.67 | 2.62 | 48,138 | 0.95 | (f) | 0.96 | (f) | 6.99 | 117 | ||||||||||||||||||||||||||||||||
| (a) | Calculated using average shares outstanding. | |
| (b) | Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share. | |
| (c) | 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. | |
| (d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. | |
| (e) | Ratios are annualized and based on average daily net assets (000’s omitted) of $422,471, $257,050, $1,463, $114,032 and $50,948 for Class A, Class C, Class R, Class Y and Institutional Class shares, respectively. | |
| (f) | Ratio includes line of credit expenses of 0.02%, 0.01%, 0.02%, 0.02%, 0.06% and 0.02% for the six months ended February 29, 2012 and the years ended August 31, 2011, August 31, 2010, August 31, 2009, August 31, 2008 and August 31, 2007, respectively. | |
| (g) | Includes the impact of valuation policy on Corporate Loans effective January 1, 2010. Had the policy change not occurred, Net gains on securities (both realized and unrealized) per share would have been $0.33, $0.33, $0.33, $0.33 and $0.33 for Class A, Class C, Class R, Class Y and Institutional Class shares, respectively, and total returns would have been lower. | |
| (h) | Commencement date of October 3, 2008. | |
| (i) | Annualized. |
33 Invesco Floating Rate 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, and redemption fees, 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 September 1, 2011 through February 29, 2012.
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, contingent deferred sales charges on redemptions, and redemption fees, 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.
| HYPOTHETICAL | ||||||||||||||||||||||||||||||
| ACTUAL | (5% annual return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Ending | Expenses | Annualized | |||||||||||||||||||||||||
| Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||||||||||||||||||||
| Class | (09/01/11) | (02/29/12)1 | Period2 | (02/29/12) | Period2 | Ratio | ||||||||||||||||||||||||
| A | $ | 1,000.00 | $ | 1,066.50 | $ | 5.65 | $ | 1,019.39 | $ | 5.52 | 1.10 | % | ||||||||||||||||||
| C | 1,000.00 | 1,065.50 | 8.22 | 1,016.91 | 8.02 | 1.60 | ||||||||||||||||||||||||
| R | 1,000.00 | 1,066.50 | 6.94 | 1,018.15 | 6.77 | 1.35 | ||||||||||||||||||||||||
| Y | 1,000.00 | 1,069.30 | 4.37 | 1,020.64 | 4.27 | 0.85 | ||||||||||||||||||||||||
| Institutional | 1,000.00 | 1,069.80 | 3.74 | 1,021.25 | 3.65 | 0.73 | ||||||||||||||||||||||||
| 1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2011 through February 29, 2012, 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 182/366 to reflect the most recent fiscal half year. |
34 Invesco Floating Rate Fund
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Invesco privacy policy
You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.
Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.
Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.
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 811-09913 and 333-36074.
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.
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 U.S. 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.
| FLR-SAR-1 | Invesco Distributors, Inc. |
Invesco S&P 500 Index Fund
Semiannual Report to Shareholders § February 29, 2012
Nasdaq:
A: SPIAX § B: SPIBX § C: SPICX § Y: SPIDX
| 2 | Fund Performance | |
| 3 | Letters to Shareholders | |
| 4 | Schedule of Investments | |
| 14 | Financial Statements | |
| 16 | Notes to Financial Statements | |
| 23 | Financial Highlights | |
| 24 | Fund Expenses | |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
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 | ||||||
Fund Performance
Performance summary
Fund vs. Indexes
Cumulative total returns, 8/31/11 to 2/29/12, 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 | 12.96 | % | ||
| Class B Shares | 12.50 | |||
| Class C Shares | 12.57 | |||
| Class Y Shares | 13.14 | |||
S&P 500 Index▼ (Broad Market/Style-Specific Index) | 13.30 | |||
Lipper S&P 500 Objective Funds Index▼ (Peer Group Index) | 13.15 | |||
| Source(s): ▼Lipper Inc. | ||
The S&P 500® Index is an unmanaged index considered representative of the US stock market.
The Lipper S&P 500 Objective Funds Index is an unmanaged index considered representative of S&P 500 funds tracked by Lipper.
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.
Average Annual Total Returns
As of 2/29/12, including maximum applicable sales charges
| Class A Shares | |||||||
| Inception (9/26/97) | 3.42 | % | |||||
| 10 | Years | 3.04 | |||||
| 5 | Years | 0.02 | |||||
| 1 | Year | -1.21 | |||||
| Class B Shares | |||||||
| Inception (9/26/97) | 3.39 | % | |||||
| 10 | Years | 2.99 | |||||
| 5 | Years | -0.01 | |||||
| 1 | Year | -1.33 | |||||
| Class C Shares | |||||||
| Inception (9/26/97) | 3.05 | % | |||||
| 10 | Years | 2.85 | |||||
| 5 | Years | 0.41 | |||||
| 1 | Year | 2.73 | |||||
| Class Y Shares | |||||||
| Inception (9/26/97) | 4.07 | % | |||||
| 10 | Years | 3.87 | |||||
| 5 | Years | 1.42 | |||||
| 1 | Year | 4.77 | |||||
Average Annual Total Returns
As of 12/31/11, the most recent calendar quarter-end, including maximum applicable sales charges
| Class A Shares | ||||||||
| Inception (9/26/97) | 2.85 | % | ||||||
| 10 | Years | 1.80 | ||||||
| 5 | Years | -1.78 | ||||||
| 1 | Year | -4.08 | ||||||
| Class B Shares | ||||||||
| Inception (9/26/97) | 2.81 | % | ||||||
| 10 | Years | 1.76 | ||||||
| 5 | Years | -1.80 | ||||||
| 1 | Year | -4.26 | ||||||
| Class C Shares | ||||||||
| Inception (9/26/97) | 2.48 | % | ||||||
| 10 | Years | 1.62 | ||||||
| 5 | Years | -1.40 | ||||||
| 1 | Year | -0.18 | ||||||
| Class Y Shares | ||||||||
| Inception (9/26/97) | 3.50 | % | ||||||
| 10 | Years | 2.62 | ||||||
| 5 | Years | -0.41 | ||||||
| 1 | Year | 1.78 | ||||||
Effective June 1, 2010, Class A, Class B, Class C and Class I shares of the predecessor fund, Morgan Stanley S&P 500 Index Fund, advised by Morgan Stanley Investment Advisors Inc. were reorganized into Class A, Class B, Class C and Class Y shares, respectively, of Invesco S&P 500 Index Fund. Returns shown above for Class A,
Class B, Class C and Class Y shares are blended returns of the predecessor fund and Invesco S&P 500 Index Fund. Share class returns will differ from the predecessor fund because of different expenses.
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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. 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, and Class Y shares was 0.61%, 1.36%, 1.27% and 0.36%, 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 Y 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.
2 Invesco S&P 500 Index Fund
Letters to Shareholders
Bruce Crockett
Dear Fellow Shareholders:
Throughout 2011, we experienced volatile, challenging markets that presented both opportunities and risks for investors. Based on everything I’ve read, this year could potentially be just as interesting, with continued economic uncertainty and market volatility.
With this in mind, you’ll want to stay informed regarding the markets and keep up to date with news that affects your investment portfolio. Invesco’s website, invesco.com/us, provides a wealth of information about your investments and news regarding global markets.
Regardless of economic conditions and market trends, the Invesco Funds Board of Trustees remains committed to putting your interests first. Throughout 2011, we worked to manage costs, and this remains a continuing focus of your Board. We will continue to oversee the funds with the strong sense of responsibility for your money and your continued trust that we’ve always maintained.
I would like to close by thanking Bob Baker for his distinguished 30-year service with the Invesco Funds Board and his unflagging commitment to our funds’ shareholders. As always, I encourage you to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving you in 2012.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Independent Chair
Invesco Funds Board of Trustees
Philip Taylor
Dear Shareholders:
This report provides important information about your Fund, including its short- and long-term performance. Also, this report includes a listing of investments held by your Fund at the close of the reporting period.
Investors are likely to confront both opportunities and challenges in 2012. As we saw in 2011, market sentiment can change suddenly and dramatically — and certainly without advance notice — depending on economic developments and world events. Similarly, your own situation, needs and goals can change, requiring adjustments in your financial strategy.
In addition to meeting with your financial adviser regularly to discuss your individual situation, you also may find it helpful to stay abreast of market trends and developments. Doing so may provide reassurance in times of economic uncertainty and market volatility such as we saw last year and may see again this year.
Invesco can help you stay informed about your investments and market trends. On our website, invesco.com/us, we provide timely market updates and commentary from many of our portfolio managers and other investment professionals. Also on our website, you can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer at invesco.com/us.
If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.
All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.
Sincerely,
Philip Taylor
Senior Managing Director, Invesco Ltd.
Senior Managing Director, Invesco Ltd.
3 Invesco S&P 500 Index Fund
Schedule of Investments(a)
February 29, 2012
(Unaudited)
| Shares | Value | |||||||
| Common Stocks & Other Equity Interests–99.07% | ||||||||
| Advertising–0.15% | ||||||||
| Interpublic Group of Cos., Inc. (The) | 19,302 | $ | 226,219 | |||||
| Omnicom Group Inc. | 11,547 | 570,884 | ||||||
| 797,103 | ||||||||
| Aerospace & Defense–2.59% | ||||||||
| Boeing Co. (The) | 31,108 | 2,331,544 | ||||||
| General Dynamics Corp. | 14,905 | 1,091,493 | ||||||
| Goodrich Corp. | 5,216 | 657,059 | ||||||
| Honeywell International Inc. | 32,375 | 1,928,579 | ||||||
| L-3 Communications Holdings, Inc. | 4,155 | 291,889 | ||||||
| Lockheed Martin Corp. | 11,104 | 981,705 | ||||||
| Northrop Grumman Corp. | 10,935 | 654,022 | ||||||
| Precision Castparts Corp. | 6,035 | 1,010,440 | ||||||
| Raytheon Co. | 14,486 | 731,833 | ||||||
| Rockwell Collins, Inc. | 6,285 | 372,638 | ||||||
| Textron Inc. | 11,643 | 320,299 | ||||||
| United Technologies Corp. | 37,925 | 3,180,770 | ||||||
| 13,552,271 | ||||||||
| Agricultural Products–0.17% | ||||||||
| Archer-Daniels-Midland Co. | 27,959 | 872,321 | ||||||
| Air Freight & Logistics–0.98% | ||||||||
| C.H. Robinson Worldwide, Inc. | 6,861 | 453,992 | ||||||
| Expeditors International of Washington, Inc. | 8,874 | 387,173 | ||||||
| FedEx Corp. | 13,277 | 1,194,797 | ||||||
| United Parcel Service, Inc.–Class B | 40,391 | 3,105,664 | ||||||
| 5,141,626 | ||||||||
| Airlines–0.06% | ||||||||
| Southwest Airlines Co. | 32,585 | 292,613 | ||||||
| Aluminum–0.09% | ||||||||
| Alcoa Inc. | 44,548 | 453,053 | ||||||
| Apparel Retail–0.53% | ||||||||
| Abercrombie & Fitch Co.–Class A | 3,616 | 165,577 | ||||||
| Gap, Inc. (The) | 14,521 | 339,210 | ||||||
| Limited Brands, Inc. | 10,294 | 478,980 | ||||||
| Ross Stores, Inc. | 9,676 | 516,021 | ||||||
| TJX Cos., Inc. (The) | 31,570 | 1,155,778 | ||||||
Urban Outfitters, Inc.(b) | 4,686 | 133,035 | ||||||
| 2,788,601 | ||||||||
| Apparel, Accessories & Luxury Goods–0.37% | ||||||||
| Coach, Inc. | 12,214 | 914,096 | ||||||
| Ralph Lauren Corp. | 2,679 | 465,423 | ||||||
| VF Corp. | 3,648 | 532,790 | ||||||
| 1,912,309 | ||||||||
| Application Software–0.60% | ||||||||
Adobe Systems Inc.(b) | 20,546 | 675,758 | ||||||
Autodesk, Inc.(b) | 9,492 | 359,272 | ||||||
Citrix Systems, Inc.(b) | 7,805 | 583,346 | ||||||
| Intuit Inc. | 12,441 | 719,587 | ||||||
Salesforce.com, Inc.(b) | 5,692 | 814,867 | ||||||
| 3,152,830 | ||||||||
| Asset Management & Custody Banks–1.12% | ||||||||
| Ameriprise Financial, Inc. | 9,469 | 527,992 | ||||||
| Bank of New York Mellon Corp. (The) | 50,756 | 1,122,215 | ||||||
| BlackRock, Inc. | 4,192 | 834,208 | ||||||
| Federated Investors, Inc.–Class B | 3,892 | 79,747 | ||||||
| Franklin Resources, Inc. | 6,092 | 718,186 | ||||||
Invesco Ltd.(c) | 18,876 | 467,559 | ||||||
| Legg Mason, Inc. | 5,201 | 142,455 | ||||||
| Northern Trust Corp. | 10,086 | 447,919 | ||||||
| State Street Corp. | 20,590 | 869,516 | ||||||
| T. Rowe Price Group Inc. | 10,573 | 651,191 | ||||||
| 5,860,988 | ||||||||
| Auto Parts & Equipment–0.25% | ||||||||
BorgWarner, Inc.(b) | 4,558 | 377,585 | ||||||
| Johnson Controls, Inc. | 28,478 | 929,237 | ||||||
| 1,306,822 | ||||||||
| Automobile Manufacturers–0.38% | ||||||||
| Ford Motor Co. | 159,060 | 1,969,163 | ||||||
| Automotive Retail–0.24% | ||||||||
AutoNation, Inc.(b) | 1,982 | 67,547 | ||||||
AutoZone, Inc.(b) | 1,164 | 435,895 | ||||||
CarMax, Inc.(b) | 9,476 | 290,818 | ||||||
O’Reilly Automotive, Inc.(b) | 5,361 | 463,726 | ||||||
| 1,257,986 | ||||||||
| Biotechnology–1.19% | ||||||||
| Amgen Inc. | 33,201 | 2,256,008 | ||||||
Biogen Idec Inc.(b) | 10,166 | 1,184,034 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 Invesco S&P 500 Index Fund
| Shares | Value | |||||||
Biotechnology–(continued) | ||||||||
Celgene Corp.(b) | 18,581 | $ | 1,362,452 | |||||
Gilead Sciences, Inc.(b) | 31,439 | 1,430,474 | ||||||
| 6,232,968 | ||||||||
| Brewers–0.06% | ||||||||
| Molson Coors Brewing Co.–Class B | 6,588 | 289,477 | ||||||
| Broadcasting–0.29% | ||||||||
| CBS Corp.–Class B | 27,390 | 818,961 | ||||||
Discovery Communications, Inc.–Class A(b) | 11,060 | 515,949 | ||||||
| Scripps Networks Interactive–Class A | 4,047 | 182,924 | ||||||
| 1,517,834 | ||||||||
| Building Products–0.03% | ||||||||
| Masco Corp. | 14,975 | 177,903 | ||||||
| Cable & Satellite–1.13% | ||||||||
| Cablevision Systems Corp.–Class A | 9,239 | 131,471 | ||||||
| Comcast Corp.–Class A | 114,053 | 3,350,877 | ||||||
DIRECTV–Class A(b) | 29,533 | 1,367,969 | ||||||
| Time Warner Cable Inc. | 13,356 | 1,059,665 | ||||||
| 5,909,982 | ||||||||
| Casinos & Gaming–0.11% | ||||||||
| International Game Technology | 12,456 | 187,089 | ||||||
| Wynn Resorts Ltd. | 3,275 | 388,219 | ||||||
| 575,308 | ||||||||
| Coal & Consumable Fuels–0.17% | ||||||||
Alpha Natural Resources, Inc.(b) | 9,199 | 170,733 | ||||||
| CONSOL Energy Inc. | 9,493 | 340,039 | ||||||
| Peabody Energy Corp. | 11,337 | 395,435 | ||||||
| 906,207 | ||||||||
| Commercial Printing–0.02% | ||||||||
| R. R. Donnelley & Sons Co. | 7,860 | 108,625 | ||||||
| Communications Equipment–2.13% | ||||||||
| Cisco Systems, Inc. | 225,016 | 4,473,318 | ||||||
F5 Networks, Inc.(b) | 3,338 | 417,116 | ||||||
| Harris Corp. | 4,816 | 210,122 | ||||||
JDS Uniphase Corp.(b) | 9,590 | 125,054 | ||||||
Juniper Networks, Inc.(b) | 22,016 | 501,084 | ||||||
Motorola Mobility Holdings Inc.(b) | 11,031 | 437,931 | ||||||
| Motorola Solutions, Inc. | 11,990 | 597,102 | ||||||
| QUALCOMM, Inc. | 70,357 | 4,374,798 | ||||||
| 11,136,525 | ||||||||
| Computer & Electronics Retail–0.08% | ||||||||
| Best Buy Co., Inc. | 12,283 | 303,390 | ||||||
| GameStop Corp.–Class A | 5,792 | 131,942 | ||||||
| 435,332 | ||||||||
| Computer Hardware–4.65% | ||||||||
Apple Inc.(b) | 38,901 | 21,101,458 | ||||||
Dell Inc.(b) | 63,916 | 1,105,747 | ||||||
| Hewlett-Packard Co. | 83,167 | 2,104,957 | ||||||
| 24,312,162 | ||||||||
| Computer Storage & Peripherals–0.77% | ||||||||
EMC Corp.(b) | 85,386 | 2,364,339 | ||||||
| Lexmark International, Inc.–Class A | 2,959 | 109,128 | ||||||
NetApp, Inc.(b) | 15,009 | 645,387 | ||||||
SanDisk Corp.(b) | 10,057 | 497,419 | ||||||
Western Digital Corp.(b) | 9,784 | 384,022 | ||||||
| 4,000,295 | ||||||||
| Construction & Engineering–0.17% | ||||||||
| Fluor Corp. | 7,101 | 429,468 | ||||||
Jacobs Engineering Group, Inc.(b) | 5,403 | 249,727 | ||||||
Quanta Services, Inc.(b) | 8,794 | 183,795 | ||||||
| 862,990 | ||||||||
| Construction & Farm Machinery & Heavy Trucks–1.26% | ||||||||
| Caterpillar Inc. | 27,064 | 3,090,979 | ||||||
| Cummins Inc. | 8,071 | 973,121 | ||||||
| Deere & Co. | 17,325 | 1,436,762 | ||||||
| Joy Global Inc. | 4,356 | 378,798 | ||||||
| PACCAR Inc. | 14,993 | 689,828 | ||||||
| 6,569,488 | ||||||||
| Construction Materials–0.05% | ||||||||
| Vulcan Materials Co. | 5,408 | 240,981 | ||||||
| Consumer Electronics–0.03% | ||||||||
| Harman International Industries, Inc. | 2,957 | 145,277 | ||||||
| Consumer Finance–0.85% | ||||||||
| American Express Co. | 42,295 | 2,236,982 | ||||||
| Capital One Financial Corp. | 23,176 | 1,172,706 | ||||||
| Discover Financial Services | 23,005 | 690,380 | ||||||
| SLM Corp. | 21,293 | 335,578 | ||||||
| 4,435,646 | ||||||||
| Data Processing & Outsourced Services–1.42% | ||||||||
| Automatic Data Processing, Inc. | 20,454 | 1,111,061 | ||||||
| Computer Sciences Corp. | 6,490 | 206,122 | ||||||
| Fidelity National Information Services, Inc. | 10,152 | 322,123 | ||||||
Fiserv, Inc.(b) | 5,890 | 390,507 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 Invesco S&P 500 Index Fund
| Shares | Value | |||||||
Data Processing & Outsourced Services–(continued) | ||||||||
| MasterCard, Inc.–Class A | 4,461 | $ | 1,873,620 | |||||
| Paychex, Inc. | 13,499 | 422,519 | ||||||
| Total System Services, Inc. | 6,785 | 148,456 | ||||||
| Visa Inc.–Class A | 21,286 | 2,477,052 | ||||||
| Western Union Co. (The) | 25,914 | 452,718 | ||||||
| 7,404,178 | ||||||||
| Department Stores–0.36% | ||||||||
| JC Penney Co., Inc. | 5,982 | 236,887 | ||||||
| Kohl’s Corp. | 10,606 | 526,906 | ||||||
| Macy’s, Inc. | 17,572 | 667,209 | ||||||
| Nordstrom, Inc. | 6,771 | 363,061 | ||||||
Sears Holdings Corp.(b) | 1,593 | 110,969 | ||||||
| 1,905,032 | ||||||||
| Distillers & Vintners–0.17% | ||||||||
| Beam Inc. | 6,506 | 358,351 | ||||||
| Brown-Forman Corp.–Class B | 4,243 | 346,441 | ||||||
Constellation Brands, Inc.–Class A(b) | 7,249 | 158,318 | ||||||
| 863,110 | ||||||||
| Distributors–0.08% | ||||||||
| Genuine Parts Co. | 6,506 | 407,796 | ||||||
| Diversified Banks–1.82% | ||||||||
| Comerica Inc. | 8,315 | 246,872 | ||||||
| U.S. Bancorp | 79,879 | 2,348,443 | ||||||
| Wells Fargo & Co. | 220,733 | 6,906,736 | ||||||
| 9,502,051 | ||||||||
| Diversified Chemicals–0.92% | ||||||||
| Dow Chemical Co. (The) | 49,466 | 1,657,606 | ||||||
| E. I. du Pont de Nemours and Co. | 38,671 | 1,966,420 | ||||||
| Eastman Chemical Co. | 5,741 | 310,760 | ||||||
| FMC Corp. | 2,899 | 286,914 | ||||||
| PPG Industries, Inc. | 6,428 | 586,555 | ||||||
| 4,808,255 | ||||||||
| Diversified Metals & Mining–0.33% | ||||||||
| Freeport-McMoRan Copper & Gold Inc. | 39,676 | 1,688,611 | ||||||
| Titanium Metals Corp. | 3,482 | 51,046 | ||||||
| 1,739,657 | ||||||||
| Diversified REIT’s–0.12% | ||||||||
| Vornado Realty Trust | 7,722 | 631,119 | ||||||
| Diversified Support Services–0.08% | ||||||||
| Cintas Corp. | 4,646 | 179,150 | ||||||
| Iron Mountain Inc. | 7,769 | 241,227 | ||||||
| 420,377 | ||||||||
| Drug Retail–0.71% | ||||||||
| CVS Caremark Corp. | 54,481 | 2,457,093 | ||||||
| Walgreen Co. | 37,222 | 1,234,282 | ||||||
| 3,691,375 | ||||||||
| Education Services–0.06% | ||||||||
Apollo Group, Inc.–Class A(b) | 4,852 | 206,889 | ||||||
| DeVry, Inc. | 2,521 | 89,571 | ||||||
| 296,460 | ||||||||
| Electric Utilities–1.82% | ||||||||
| American Electric Power Co., Inc. | 20,212 | 760,173 | ||||||
| Duke Energy Corp. | 55,784 | 1,167,001 | ||||||
| Edison International | 13,637 | 570,981 | ||||||
| Entergy Corp. | 7,371 | 491,130 | ||||||
| Exelon Corp. | 27,750 | 1,084,193 | ||||||
| FirstEnergy Corp. | 17,505 | 775,296 | ||||||
| NextEra Energy, Inc. | 17,685 | 1,052,434 | ||||||
| Northeast Utilities | 7,409 | 265,983 | ||||||
| Pepco Holdings, Inc. | 9,498 | 184,641 | ||||||
| Pinnacle West Capital Corp. | 4,593 | 216,009 | ||||||
| PPL Corp. | 24,205 | 691,053 | ||||||
| Progress Energy, Inc. | 12,347 | 655,379 | ||||||
| Southern Co. (The) | 36,077 | 1,594,243 | ||||||
| 9,508,516 | ||||||||
| Electrical Components & Equipment–0.54% | ||||||||
| Cooper Industries PLC (Ireland) | 6,613 | 404,848 | ||||||
| Emerson Electric Co. | 30,795 | 1,549,296 | ||||||
| Rockwell Automation, Inc. | 5,933 | 474,521 | ||||||
| Roper Industries, Inc. | 4,036 | 369,375 | ||||||
| 2,798,040 | ||||||||
| Electronic Components–0.24% | ||||||||
| Amphenol Corp.–Class A | 6,937 | 388,195 | ||||||
| Corning Inc. | 65,780 | 857,771 | ||||||
| 1,245,966 | ||||||||
| Electronic Equipment & Instruments–0.03% | ||||||||
| FLIR Systems, Inc. | 6,523 | 170,707 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco S&P 500 Index Fund
| Shares | Value | |||||||
| Electronic Manufacturing Services–0.19% | ||||||||
| Jabil Circuit, Inc. | 7,668 | $ | 198,064 | |||||
| Molex Inc. | 5,726 | 155,175 | ||||||
| TE Connectivity Ltd. | 17,766 | 649,347 | ||||||
| 1,002,586 | ||||||||
| Environmental & Facilities Services–0.26% | ||||||||
| Republic Services, Inc. | 13,176 | 393,040 | ||||||
Stericycle, Inc.(b) | 3,595 | 311,938 | ||||||
| Waste Management, Inc. | 19,267 | 673,960 | ||||||
| 1,378,938 | ||||||||
| Fertilizers & Agricultural Chemicals–0.57% | ||||||||
| CF Industries Holdings, Inc. | 2,736 | 508,896 | ||||||
| Monsanto Co. | 22,410 | 1,734,086 | ||||||
| Mosaic Co. (The) | 12,462 | 719,680 | ||||||
| 2,962,662 | ||||||||
| Food Distributors–0.14% | ||||||||
| Sysco Corp. | 24,691 | 726,409 | ||||||
| Food Retail–0.29% | ||||||||
| Kroger Co. (The) | 24,994 | 594,607 | ||||||
| Safeway Inc. | 14,226 | 305,148 | ||||||
| SUPERVALU Inc. | 8,882 | 58,000 | ||||||
| Whole Foods Market, Inc. | 6,683 | 539,585 | ||||||
| 1,497,340 | ||||||||
| Footwear–0.32% | ||||||||
| NIKE, Inc.–Class B | 15,525 | 1,675,458 | ||||||
| Gas Utilities–0.11% | ||||||||
| AGL Resources Inc. | 4,923 | 196,280 | ||||||
| ONEOK, Inc. | 4,355 | 359,897 | ||||||
| 556,177 | ||||||||
| General Merchandise Stores–0.46% | ||||||||
Big Lots, Inc.(b) | 2,787 | 122,210 | ||||||
Dollar Tree, Inc.(b) | 4,953 | 438,390 | ||||||
| Family Dollar Stores, Inc. | 4,950 | 267,250 | ||||||
| Target Corp. | 28,110 | 1,593,556 | ||||||
| 2,421,406 | ||||||||
| Gold–0.24% | ||||||||
| Newmont Mining Corp. | 20,710 | 1,230,174 | ||||||
| Health Care Distributors–0.38% | ||||||||
| AmerisourceBergen Corp. | 10,812 | 403,828 | ||||||
| Cardinal Health, Inc. | 14,461 | 600,855 | ||||||
| McKesson Corp. | 10,277 | 858,232 | ||||||
| Patterson Cos. Inc. | 3,664 | 116,955 | ||||||
| 1,979,870 | ||||||||
| Health Care Equipment–1.72% | ||||||||
| Baxter International Inc. | 23,601 | 1,371,926 | ||||||
| Becton, Dickinson and Co. | 8,978 | 684,303 | ||||||
Boston Scientific Corp.(b) | 62,011 | 385,708 | ||||||
| C.R. Bard, Inc. | 3,636 | 340,402 | ||||||
CareFusion Corp.(b) | 9,401 | 242,640 | ||||||
| Covidien PLC (Ireland) | 20,192 | 1,055,032 | ||||||
Edwards Lifesciences Corp.(b) | 4,766 | 348,538 | ||||||
Intuitive Surgical, Inc.(b) | 1,631 | 834,452 | ||||||
| Medtronic, Inc. | 44,172 | 1,683,837 | ||||||
| St. Jude Medical, Inc. | 13,351 | 562,344 | ||||||
| Stryker Corp. | 13,614 | 730,255 | ||||||
Varian Medical Systems, Inc.(b) | 4,679 | 305,305 | ||||||
| Zimmer Holdings, Inc. | 7,499 | 455,564 | ||||||
| 9,000,306 | ||||||||
| Health Care Facilities–0.02% | ||||||||
Tenet Healthcare Corp.(b) | 18,180 | 102,717 | ||||||
| Health Care Services–0.63% | ||||||||
DaVita, Inc.(b) | 3,954 | 342,219 | ||||||
Express Scripts, Inc.(b) | 20,363 | 1,085,959 | ||||||
Laboratory Corp. of America Holdings(b) | 4,144 | 372,504 | ||||||
Medco Health Solutions, Inc.(b) | 16,204 | 1,095,228 | ||||||
| Quest Diagnostics Inc. | 6,603 | 383,304 | ||||||
| 3,279,214 | ||||||||
| Health Care Supplies–0.04% | ||||||||
| DENTSPLY International Inc. | 5,898 | 228,135 | ||||||
| Health Care Technology–0.09% | ||||||||
Cerner Corp.(b) | 6,071 | 448,222 | ||||||
| Home Entertainment Software–0.04% | ||||||||
Electronic Arts Inc.(b) | 13,871 | 226,513 | ||||||
| Home Furnishings–0.03% | ||||||||
| Leggett & Platt, Inc. | 5,869 | 132,815 | ||||||
| Home Improvement Retail–0.87% | ||||||||
| Home Depot, Inc. (The) | 64,524 | 3,069,407 | ||||||
| Lowe’s Cos., Inc. | 52,427 | 1,487,878 | ||||||
| 4,557,285 | ||||||||
| Homebuilding–0.09% | ||||||||
| D.R. Horton, Inc. | 11,641 | 166,932 | ||||||
| Lennar Corp.–Class A | 6,731 | 157,371 | ||||||
PulteGroup Inc.(b) | 14,098 | 124,344 | ||||||
| 448,647 | ||||||||
| Homefurnishing Retail–0.11% | ||||||||
Bed Bath & Beyond Inc.(b) | 10,047 | 600,208 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco S&P 500 Index Fund
| Shares | Value | |||||||
| Hotels, Resorts & Cruise Lines–0.32% | ||||||||
| Carnival Corp. | 18,940 | $ | 573,692 | |||||
| Marriott International Inc.–Class A | 11,221 | 395,877 | ||||||
| Starwood Hotels & Resorts Worldwide, Inc. | 8,043 | 433,518 | ||||||
| Wyndham Worldwide Corp. | 6,387 | 280,964 | ||||||
| 1,684,051 | ||||||||
| Household Appliances–0.05% | ||||||||
| Whirlpool Corp. | 3,162 | 238,952 | ||||||
| Household Products–2.15% | ||||||||
| Clorox Co. (The) | 5,520 | 373,207 | ||||||
| Colgate-Palmolive Co. | 20,258 | 1,887,640 | ||||||
| Kimberly-Clark Corp. | 16,494 | 1,202,083 | ||||||
| Procter & Gamble Co. (The) | 115,161 | 7,775,671 | ||||||
| 11,238,601 | ||||||||
| Housewares & Specialties–0.04% | ||||||||
| Newell Rubbermaid Inc. | 12,117 | 221,741 | ||||||
| Human Resource & Employment Services–0.03% | ||||||||
| Robert Half International, Inc. | 5,983 | 170,097 | ||||||
| Hypermarkets & Super Centers–1.13% | ||||||||
| Costco Wholesale Corp. | 18,139 | 1,561,042 | ||||||
| Wal-Mart Stores, Inc. | 73,107 | 4,319,162 | ||||||
| 5,880,204 | ||||||||
| Independent Power Producers & Energy Traders–0.16% | ||||||||
AES Corp. (The)(b) | 26,986 | 365,930 | ||||||
| Constellation Energy Group Inc. | 8,436 | 305,889 | ||||||
NRG Energy, Inc.(b) | 9,624 | 164,571 | ||||||
| 836,390 | ||||||||
| Industrial Conglomerates–2.54% | ||||||||
| 3M Co. | 29,334 | 2,569,658 | ||||||
| Danaher Corp. | 23,844 | 1,259,678 | ||||||
General Electric Co.(d) | 441,898 | 8,418,157 | ||||||
| Tyco International Ltd. | 19,336 | 1,001,992 | ||||||
| 13,249,485 | ||||||||
| Industrial Gases–0.46% | ||||||||
| Air Products & Chemicals, Inc. | 8,795 | 793,661 | ||||||
| Airgas, Inc. | 2,853 | 234,887 | ||||||
| Praxair, Inc. | 12,546 | 1,367,514 | ||||||
| 2,396,062 | ||||||||
| Industrial Machinery–0.94% | ||||||||
| Dover Corp. | 7,758 | 496,667 | ||||||
| Eaton Corp. | 13,988 | 730,034 | ||||||
| Flowserve Corp. | 2,316 | 274,608 | ||||||
| Illinois Tool Works Inc. | 20,224 | 1,126,274 | ||||||
| Ingersoll-Rand PLC (Ireland) | 13,066 | 521,072 | ||||||
| Pall Corp. | 4,797 | 304,370 | ||||||
| Parker Hannifin Corp. | 6,314 | 567,060 | ||||||
| Snap-on Inc. | 2,425 | 148,240 | ||||||
| Stanley Black & Decker Inc. | 7,030 | 539,904 | ||||||
| Xylem, Inc. | 7,722 | 200,618 | ||||||
| 4,908,847 | ||||||||
| Industrial REIT’s–0.12% | ||||||||
| Prologis, Inc. | 19,180 | 645,599 | ||||||
| Insurance Brokers–0.26% | ||||||||
| Aon Corp. | 13,531 | 633,386 | ||||||
| Marsh & McLennan Cos., Inc. | 22,517 | 702,531 | ||||||
| 1,335,917 | ||||||||
| Integrated Oil & Gas–6.81% | ||||||||
| Chevron Corp. | 83,356 | 9,095,807 | ||||||
| ConocoPhillips | 55,575 | 4,254,266 | ||||||
| Exxon Mobil Corp. | 200,629 | 17,354,409 | ||||||
| Hess Corp. | 12,473 | 809,747 | ||||||
| Murphy Oil Corp. | 8,099 | 517,850 | ||||||
| Occidental Petroleum Corp. | 33,978 | 3,546,284 | ||||||
| 35,578,363 | ||||||||
| Integrated Telecommunication Services–2.61% | ||||||||
| AT&T Inc. | 248,043 | 7,587,635 | ||||||
| CenturyLink Inc. | 25,850 | 1,040,463 | ||||||
| Frontier Communications Corp. | 41,652 | 191,183 | ||||||
| Verizon Communications Inc. | 118,500 | 4,516,035 | ||||||
| Windstream Corp. | 24,393 | 294,667 | ||||||
| 13,629,983 | ||||||||
| Internet Retail–0.87% | ||||||||
Amazon.com, Inc.(b) | 15,226 | 2,735,960 | ||||||
| Expedia, Inc. | 3,925 | 133,646 | ||||||
Netflix Inc.(b) | 2,316 | 256,451 | ||||||
Priceline.com Inc.(b) | 2,083 | 1,306,082 | ||||||
TripAdvisor Inc.(b) | 3,925 | 126,503 | ||||||
| 4,558,642 | ||||||||
| Internet Software & Services–1.83% | ||||||||
Akamai Technologies, Inc.(b) | 7,510 | 270,360 | ||||||
eBay Inc.(b) | 48,090 | 1,718,737 | ||||||
Google Inc.–Class A(b) | 10,573 | 6,536,757 | ||||||
| VeriSign, Inc. | 6,654 | 245,865 | ||||||
Yahoo! Inc.(b) | 51,914 | 769,885 | ||||||
| 9,541,604 | ||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco S&P 500 Index Fund
| Shares | Value | |||||||
| Investment Banking & Brokerage–0.81% | ||||||||
| Charles Schwab Corp. (The) | 45,183 | $ | 627,140 | |||||
E*TRADE Financial Corp.(b) | 10,626 | 102,329 | ||||||
| Goldman Sachs Group, Inc. (The) | 20,606 | 2,372,575 | ||||||
| Morgan Stanley | 62,119 | 1,151,686 | ||||||
| 4,253,730 | ||||||||
| IT Consulting & Other Services–2.45% | ||||||||
| Accenture PLC–Class A (Ireland) | 26,825 | 1,597,161 | ||||||
Cognizant Technology Solutions Corp.–Class A(b) | 12,645 | 897,163 | ||||||
| International Business Machines Corp. | 49,332 | 9,705,084 | ||||||
SAIC, Inc.(b) | 11,561 | 141,275 | ||||||
Teradata Corp.(b) | 6,961 | 463,255 | ||||||
| 12,803,938 | ||||||||
| Leisure Products–0.12% | ||||||||
| Hasbro, Inc. | 4,828 | 170,525 | ||||||
| Mattel, Inc. | 14,174 | 459,805 | ||||||
| 630,330 | ||||||||
| Life & Health Insurance–0.96% | ||||||||
| Aflac, Inc. | 19,537 | 923,123 | ||||||
| Lincoln National Corp. | 12,626 | 313,630 | ||||||
| MetLife, Inc. | 44,268 | 1,706,531 | ||||||
| Principal Financial Group, Inc. | 12,772 | 353,274 | ||||||
| Prudential Financial, Inc. | 19,755 | 1,208,216 | ||||||
| Torchmark Corp. | 4,228 | 204,804 | ||||||
| Unum Group | 12,237 | 282,063 | ||||||
| 4,991,641 | ||||||||
| Life Sciences Tools & Services–0.45% | ||||||||
| Agilent Technologies, Inc. | 14,532 | 633,886 | ||||||
Life Technologies Corp.(b) | 7,458 | 352,838 | ||||||
| PerkinElmer, Inc. | 4,732 | 127,764 | ||||||
| Thermo Fisher Scientific, Inc. | 15,832 | 896,408 | ||||||
Waters Corp.(b) | 3,756 | 336,537 | ||||||
| 2,347,433 | ||||||||
| Managed Health Care–1.05% | ||||||||
| Aetna Inc. | 15,164 | 709,069 | ||||||
| Cigna Corp. | 11,948 | 527,026 | ||||||
Coventry Health Care, Inc.(b) | 6,026 | 196,990 | ||||||
| Humana Inc. | 6,842 | 595,938 | ||||||
| UnitedHealth Group Inc. | 44,620 | 2,487,565 | ||||||
| WellPoint, Inc. | 14,559 | 955,507 | ||||||
| 5,472,095 | ||||||||
| Metal & Glass Containers–0.08% | ||||||||
| Ball Corp. | 6,804 | 272,704 | ||||||
Owens-Illinois, Inc.(b) | 6,865 | 164,074 | ||||||
| 436,778 | ||||||||
| Motorcycle Manufacturers–0.09% | ||||||||
| Harley-Davidson, Inc. | 9,725 | 452,991 | ||||||
| Movies & Entertainment–1.46% | ||||||||
| News Corp.–Class A | 91,789 | 1,823,847 | ||||||
| Time Warner Inc. | 41,893 | 1,558,839 | ||||||
| Viacom Inc.–Class B | 23,113 | 1,100,641 | ||||||
| Walt Disney Co. (The) | 75,196 | 3,157,480 | ||||||
| 7,640,807 | ||||||||
| Multi-Line Insurance–0.34% | ||||||||
American International Group, Inc.(b) | 18,283 | 534,229 | ||||||
| Assurant, Inc. | 3,901 | 165,676 | ||||||
Genworth Financial Inc.–Class A(b) | 20,548 | 186,781 | ||||||
| Hartford Financial Services Group, Inc. | 18,656 | 386,366 | ||||||
| Loews Corp. | 12,780 | 500,209 | ||||||
| 1,773,261 | ||||||||
| Multi-Sector Holdings–0.05% | ||||||||
| Leucadia National Corp. | 8,291 | 236,211 | ||||||
| Multi-Utilities–1.31% | ||||||||
| Ameren Corp. | 10,138 | 325,126 | ||||||
| CenterPoint Energy, Inc. | 17,828 | 347,468 | ||||||
| CMS Energy Corp. | 10,546 | 225,790 | ||||||
| Consolidated Edison, Inc. | 12,259 | 712,248 | ||||||
| Dominion Resources, Inc. | 23,841 | 1,203,255 | ||||||
| DTE Energy Co. | 7,084 | 382,465 | ||||||
| Integrys Energy Group, Inc. | 3,236 | 168,369 | ||||||
| NiSource Inc. | 11,766 | 282,384 | ||||||
| PG&E Corp. | 16,988 | 708,060 | ||||||
| Public Service Enterprise Group Inc. | 21,174 | 651,736 | ||||||
| SCANA Corp. | 4,806 | 216,270 | ||||||
| Sempra Energy | 10,030 | 594,177 | ||||||
| TECO Energy, Inc. | 9,030 | 162,088 | ||||||
| Wisconsin Energy Corp. | 9,679 | 329,860 | ||||||
| Xcel Energy, Inc. | 20,298 | 537,694 | ||||||
| 6,846,990 | ||||||||
| Office Electronics–0.09% | ||||||||
| Xerox Corp. | 58,057 | 477,809 | ||||||
| Office REIT’s–0.12% | ||||||||
| Boston Properties, Inc. | 6,179 | 627,477 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco S&P 500 Index Fund
| Shares | Value | |||||||
| Office Services & Supplies–0.06% | ||||||||
| Avery Dennison Corp. | 4,448 | $ | 135,664 | |||||
| Pitney Bowes Inc. | 8,355 | 151,476 | ||||||
| 287,140 | ||||||||
| Oil & Gas Drilling–0.26% | ||||||||
| Diamond Offshore Drilling, Inc. | 2,957 | 202,466 | ||||||
| Helmerich & Payne, Inc. | 4,467 | 273,827 | ||||||
Nabors Industries Ltd.(b) | 12,036 | 262,144 | ||||||
Noble Corp.(b) | 10,565 | 424,502 | ||||||
Rowan Cos., Inc.(b) | 5,206 | 191,945 | ||||||
| 1,354,884 | ||||||||
| Oil & Gas Equipment & Services–1.77% | ||||||||
| Baker Hughes Inc. | 18,268 | 918,515 | ||||||
Cameron International Corp.(b) | 10,262 | 571,696 | ||||||
FMC Technologies, Inc.(b) | 9,972 | 502,888 | ||||||
| Halliburton Co. | 38,514 | 1,409,227 | ||||||
| National Oilwell Varco Inc. | 17,740 | 1,464,082 | ||||||
| Schlumberger Ltd. | 56,177 | 4,359,897 | ||||||
| 9,226,305 | ||||||||
| Oil & Gas Exploration & Production–2.19% | ||||||||
| Anadarko Petroleum Corp. | 20,842 | 1,753,229 | ||||||
| Apache Corp. | 16,074 | 1,734,867 | ||||||
| Cabot Oil & Gas Corp. | 8,747 | 305,095 | ||||||
| Chesapeake Energy Corp. | 27,593 | 689,825 | ||||||
Denbury Resources Inc.(b) | 16,627 | 331,044 | ||||||
| Devon Energy Corp. | 16,905 | 1,239,305 | ||||||
| EOG Resources, Inc. | 11,253 | 1,281,267 | ||||||
| EQT Corp. | 6,220 | 329,784 | ||||||
| Marathon Oil Corp. | 29,455 | 998,230 | ||||||
Newfield Exploration Co.(b) | 5,544 | 199,584 | ||||||
| Noble Energy, Inc. | 7,347 | 717,435 | ||||||
| Pioneer Natural Resources Co. | 5,096 | 558,725 | ||||||
| QEP Resources Inc. | 7,406 | 252,841 | ||||||
| Range Resources Corp. | 6,542 | 416,595 | ||||||
Southwestern Energy Co.(b) | 14,539 | 480,659 | ||||||
WPX Energy Inc.(b) | 8,223 | 149,330 | ||||||
| 11,437,815 | ||||||||
| Oil & Gas Refining & Marketing–0.29% | ||||||||
| Marathon Petroleum Corp. | 14,922 | 620,009 | ||||||
| Sunoco, Inc. | 4,512 | 174,299 | ||||||
Tesoro Corp.(b) | 5,953 | 157,933 | ||||||
| Valero Energy Corp. | 23,428 | 573,752 | ||||||
| 1,525,993 | ||||||||
| Oil & Gas Storage & Transportation–0.48% | ||||||||
| El Paso Corp. | 32,279 | 897,679 | ||||||
| Spectra Energy Corp. | 27,220 | 854,163 | ||||||
| Williams Cos., Inc. (The) | 24,670 | 737,140 | ||||||
| 2,488,982 | ||||||||
| Other Diversified Financial Services–2.62% | ||||||||
| Bank of America Corp. | 424,256 | 3,381,320 | ||||||
| Citigroup Inc. | 122,377 | 4,077,602 | ||||||
| JPMorgan Chase & Co. | 159,046 | 6,240,965 | ||||||
| 13,699,887 | ||||||||
| Packaged Foods & Meats–1.62% | ||||||||
| Campbell Soup Co. | 7,506 | 250,100 | ||||||
| ConAgra Foods, Inc. | 17,349 | 455,411 | ||||||
Dean Foods Co.(b) | 7,688 | 94,255 | ||||||
| General Mills, Inc. | 26,932 | 1,031,765 | ||||||
| H.J. Heinz Co. | 13,403 | 706,472 | ||||||
| Hershey Co. (The) | 6,366 | 386,416 | ||||||
| Hormel Foods Corp. | 5,753 | 163,788 | ||||||
| J M Smucker Co. (The) | 4,764 | 358,824 | ||||||
| Kellogg Co. | 10,371 | 542,922 | ||||||
| Kraft Foods Inc.–Class A | 73,950 | 2,815,276 | ||||||
| McCormick & Co., Inc. | 5,507 | 277,828 | ||||||
| Mead Johnson Nutrition Co. | 8,520 | 662,430 | ||||||
| Sara Lee Corp. | 24,726 | 500,702 | ||||||
| Tyson Foods, Inc.–Class A | 12,227 | 231,213 | ||||||
| 8,477,402 | ||||||||
| Paper Packaging–0.06% | ||||||||
| Bemis Co., Inc. | 4,356 | 136,648 | ||||||
| Sealed Air Corp. | 8,036 | 157,746 | ||||||
| 294,394 | ||||||||
| Paper Products–0.16% | ||||||||
| International Paper Co. | 18,294 | 643,034 | ||||||
| MeadWestvaco Corp. | 7,146 | 216,381 | ||||||
| 859,415 | ||||||||
| Personal Products–0.17% | ||||||||
| Avon Products, Inc. | 18,030 | 336,981 | ||||||
| Estee Lauder Cos. Inc. (The)–Class A | 9,349 | 547,290 | ||||||
| 884,271 | ||||||||
| Pharmaceuticals–5.67% | ||||||||
| Abbott Laboratories | 65,203 | 3,691,142 | ||||||
| Allergan, Inc. | 12,767 | 1,143,795 | ||||||
| Bristol-Myers Squibb Co. | 70,927 | 2,281,722 | ||||||
| Eli Lilly & Co. | 42,644 | 1,673,350 | ||||||
Forest Laboratories, Inc.(b) | 11,182 | 363,639 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco S&P 500 Index Fund
| Shares | Value | |||||||
Pharmaceuticals–(continued) | ||||||||
Hospira, Inc.(b) | 6,859 | $ | 244,318 | |||||
| Johnson & Johnson | 114,304 | 7,438,904 | ||||||
| Merck & Co., Inc. | 127,575 | 4,869,538 | ||||||
Mylan Inc.(b) | 17,852 | 418,451 | ||||||
| Perrigo Co. | 3,856 | 397,399 | ||||||
| Pfizer Inc. | 321,752 | 6,788,967 | ||||||
Watson Pharmaceuticals, Inc.(b) | 5,299 | 309,038 | ||||||
| 29,620,263 | ||||||||
| Property & Casualty Insurance–1.97% | ||||||||
| ACE Ltd. (Switzerland) | 14,097 | 1,010,896 | ||||||
| Allstate Corp. (The) | 21,151 | 664,776 | ||||||
Berkshire Hathaway Inc.–Class B(b) | 73,586 | 5,772,822 | ||||||
| Chubb Corp. (The) | 11,639 | 790,986 | ||||||
| Cincinnati Financial Corp. | 6,739 | 237,010 | ||||||
| Progressive Corp. (The) | 25,812 | 552,893 | ||||||
| Travelers Cos., Inc. (The) | 17,277 | 1,001,548 | ||||||
| XL Group PLC (Ireland) | 13,415 | 279,032 | ||||||
| 10,309,963 | ||||||||
| Publishing–0.15% | ||||||||
| Gannett Co., Inc. | 9,973 | 147,999 | ||||||
| McGraw-Hill Cos., Inc. (The) | 12,280 | 571,511 | ||||||
| Washington Post Co. (The)–Class B | 194 | 76,417 | ||||||
| 795,927 | ||||||||
| Railroads–0.79% | ||||||||
| CSX Corp. | 43,946 | 923,306 | ||||||
| Norfolk Southern Corp. | 14,067 | 969,216 | ||||||
| Union Pacific Corp. | 20,219 | 2,229,145 | ||||||
| 4,121,667 | ||||||||
| Real Estate Services–0.05% | ||||||||
CBRE Group, Inc.–Class A(b) | 13,574 | 248,811 | ||||||
| Regional Banks–0.90% | ||||||||
| BB&T Corp. | 29,179 | 853,486 | ||||||
| Fifth Third Bancorp | 38,498 | 523,958 | ||||||
| First Horizon National Corp. | 11,033 | 103,710 | ||||||
| Huntington Bancshares Inc. | 36,167 | 211,396 | ||||||
| KeyCorp | 39,884 | 323,060 | ||||||
| M&T Bank Corp. | 5,294 | 432,096 | ||||||
| PNC Financial Services Group, Inc. | 22,020 | 1,310,631 | ||||||
| Regions Financial Corp. | 52,692 | 303,506 | ||||||
| SunTrust Banks, Inc. | 22,477 | 516,072 | ||||||
| Zions Bancorp. | 7,713 | 146,547 | ||||||
| 4,724,462 | ||||||||
| Research & Consulting Services–0.07% | ||||||||
| Dun & Bradstreet Corp. (The) | 2,034 | 168,110 | ||||||
| Equifax Inc. | 5,055 | 212,512 | ||||||
| 380,622 | ||||||||
| Residential REIT’s–0.26% | ||||||||
| Apartment Investment & Management Co.–Class A | 5,049 | 125,417 | ||||||
| AvalonBay Communities, Inc. | 3,943 | 511,289 | ||||||
| Equity Residential | 12,415 | 706,289 | ||||||
| 1,342,995 | ||||||||
| Restaurants–1.50% | ||||||||
Chipotle Mexican Grill, Inc.(b) | 1,309 | 510,798 | ||||||
| Darden Restaurants, Inc. | 5,497 | 280,292 | ||||||
| McDonald’s Corp. | 42,828 | 4,251,964 | ||||||
| Starbucks Corp. | 31,199 | 1,515,023 | ||||||
| Yum! Brands, Inc. | 19,274 | 1,276,710 | ||||||
| 7,834,787 | ||||||||
| Retail REIT’s–0.38% | ||||||||
| Kimco Realty Corp. | 17,033 | 313,066 | ||||||
| Simon Property Group, Inc. | 12,297 | 1,665,998 | ||||||
| 1,979,064 | ||||||||
| Semiconductor Equipment–0.24% | ||||||||
| Applied Materials, Inc. | 54,649 | 668,904 | ||||||
| KLA-Tencor Corp. | 6,975 | 337,590 | ||||||
Novellus Systems, Inc.(b) | 2,826 | 131,353 | ||||||
Teradyne, Inc.(b) | 7,703 | 126,483 | ||||||
| 1,264,330 | ||||||||
| Semiconductors–2.16% | ||||||||
Advanced Micro Devices, Inc.(b) | 24,503 | 180,097 | ||||||
| Altera Corp. | 13,429 | 516,345 | ||||||
| Analog Devices, Inc. | 12,471 | 488,988 | ||||||
Broadcom Corp.–Class A(b) | 20,304 | 754,294 | ||||||
First Solar, Inc.(b) | 2,485 | 80,266 | ||||||
| Intel Corp. | 213,135 | 5,729,069 | ||||||
| Linear Technology Corp. | 9,532 | 319,131 | ||||||
LSI Corp.(b) | 23,585 | 202,831 | ||||||
| Microchip Technology Inc. | 7,991 | 288,235 | ||||||
Micron Technology, Inc.(b) | 41,336 | 353,423 | ||||||
NVIDIA Corp.(b) | 25,559 | 387,219 | ||||||
| Texas Instruments Inc. | 47,827 | 1,595,030 | ||||||
| Xilinx, Inc. | 10,984 | 405,639 | ||||||
| 11,300,567 | ||||||||
| Soft Drinks–2.20% | ||||||||
Coca-Cola Co. (The) | 95,066 | 6,641,311 | ||||||
Coca-Cola Enterprises, Inc. | 13,059 | 377,405 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco S&P 500 Index Fund
| Shares | Value | |||||||
Soft Drinks–(continued) | ||||||||
| Dr. Pepper Snapple Group, Inc. | 8,957 | $ | 340,814 | |||||
| PepsiCo, Inc. | 65,438 | 4,118,667 | ||||||
| 11,478,197 | ||||||||
| Specialized Consumer Services–0.04% | ||||||||
| H&R Block, Inc. | 12,259 | 199,822 | ||||||
| Specialized Finance–0.38% | ||||||||
| CME Group Inc. | 2,778 | 804,203 | ||||||
IntercontinentalExchange Inc.(b) | 3,069 | 423,399 | ||||||
| Moody’s Corp. | 8,176 | 315,675 | ||||||
NASDAQ OMX Group, Inc. (The)(b) | 5,316 | 140,024 | ||||||
| NYSE Euronext | 10,965 | 326,428 | ||||||
| 2,009,729 | ||||||||
| Specialized REIT’s–0.72% | ||||||||
| HCP, Inc. | 17,068 | 674,186 | ||||||
| Health Care REIT, Inc. | 7,943 | 432,417 | ||||||
| Host Hotels & Resorts Inc. | 29,560 | 466,457 | ||||||
| Plum Creek Timber Co., Inc. | 6,750 | 264,330 | ||||||
| Public Storage | 5,928 | 794,767 | ||||||
| Ventas, Inc. | 12,051 | 673,892 | ||||||
| Weyerhaeuser Co. | 22,452 | 469,022 | ||||||
| 3,775,071 | ||||||||
| Specialty Chemicals–0.32% | ||||||||
| Ecolab Inc. | 12,562 | 753,720 | ||||||
| International Flavors & Fragrances Inc. | 3,347 | 190,879 | ||||||
| Sherwin-Williams Co. (The) | 3,598 | 371,134 | ||||||
| Sigma-Aldrich Corp. | 5,082 | 364,837 | ||||||
| 1,680,570 | ||||||||
| Specialty Stores–0.15% | ||||||||
| Staples, Inc. | 29,275 | 429,172 | ||||||
| Tiffany & Co. | 5,313 | 345,398 | ||||||
| 774,570 | ||||||||
| Steel–0.25% | ||||||||
| Allegheny Technologies, Inc. | 4,403 | 193,160 | ||||||
| Cliffs Natural Resources Inc. | 5,947 | 377,516 | ||||||
| Nucor Corp. | 13,255 | 576,990 | ||||||
| United States Steel Corp. | 5,978 | 162,721 | ||||||
| 1,310,387 | ||||||||
| Systems Software–3.14% | ||||||||
BMC Software, Inc.(b) | 7,123 | 266,685 | ||||||
| CA, Inc. | 15,488 | 418,641 | ||||||
| Microsoft Corp. | 313,376 | 9,946,554 | ||||||
| Oracle Corp. | 164,697 | 4,820,681 | ||||||
Red Hat, Inc.(b) | 8,048 | 398,054 | ||||||
Symantec Corp.(b) | 30,854 | 550,436 | ||||||
| 16,401,051 | ||||||||
| Thrifts & Mortgage Finance–0.07% | ||||||||
| Hudson City Bancorp, Inc. | 22,077 | 151,227 | ||||||
| People’s United Financial Inc. | 15,094 | 190,034 | ||||||
| 341,261 | ||||||||
| Tires & Rubber–0.03% | ||||||||
Goodyear Tire & Rubber Co. (The)(b) | 10,227 | 131,519 | ||||||
| Tobacco–1.91% | ||||||||
| Altria Group, Inc. | 86,075 | 2,590,857 | ||||||
| Lorillard, Inc. | 5,651 | 740,733 | ||||||
| Philip Morris International Inc. | 72,704 | 6,072,238 | ||||||
| Reynolds American Inc. | 14,150 | 593,310 | ||||||
| 9,997,138 | ||||||||
| Trading Companies & Distributors–0.22% | ||||||||
| Fastenal Co. | 12,356 | 650,914 | ||||||
| W.W. Grainger, Inc. | 2,522 | 523,895 | ||||||
| 1,174,809 | ||||||||
| Trucking–0.02% | ||||||||
| Ryder System, Inc. | 2,189 | 116,520 | ||||||
| Wireless Telecommunication Services–0.28% | ||||||||
| American Tower Corp. | 16,449 | 1,029,378 | ||||||
MetroPCS Communications, Inc.(b) | 12,281 | 126,494 | ||||||
Sprint Nextel Corp.(b) | 125,395 | 309,726 | ||||||
| 1,465,598 | ||||||||
| Total Common Stocks & Other Equity Interests (Cost $356,123,580) | 517,484,624 | |||||||
| Money Market Funds–1.12% | ||||||||
Liquid Assets Portfolio–Institutional Class(e) | 2,940,288 | 2,940,288 | ||||||
Premier Portfolio–Institutional Class(e) | 2,940,289 | 2,940,289 | ||||||
| Total Money Market Funds (Cost $5,880,577) | 5,880,577 | |||||||
| TOTAL INVESTMENTS–100.19% (Cost $362,004,157) | 523,365,201 | |||||||
| OTHER ASSETS LESS LIABILITIES–(0.19%) | (1,014,312 | ) | ||||||
| NET ASSETS–100.00% | $ | 522,350,889 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 Invesco S&P 500 Index Fund
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) | Non-income producing security. | |
| (c) | Affiliated company during the period. The Investment Company Act of 1940 defines affiliates as those issuances 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 February 29, 2012 represented 0.09% of the Fund’s Net Assets. See Note 4. | |
| (d) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1I and Note 5. | |
| (e) | The money market fund and the Fund are affiliated by having the same investment adviser. |
By sector, based on Net Assets
as of February 29, 2012
| Information Technology | 20.0 | % | ||
| Financials | 14.0 | |||
| Energy | 12.0 | |||
| Health Care | 11.2 | |||
| Consumer Discretionary | 10.9 | |||
| Consumer Staples | 10.7 | |||
| Industrials | 10.6 | |||
| Materials | 3.6 | |||
| Utilities | 3.4 | |||
| Telecommunication Services | 2.7 | |||
| Money Market Funds Plus Other Assets Less Liabilities | 0.9 | |||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 Invesco S&P 500 Index Fund
Statement of Assets and Liabilities
February 29, 2012
(Unaudited)
| Assets: | ||||
| Investments, at value (Cost $355,683,031) | $ | 517,017,065 | ||
| Investments in affiliates, at value (Cost $6,321,126) | 6,348,136 | |||
| Total investments, at value (Cost $362,004,157) | 523,365,201 | |||
| Receivable for: | ||||
| Fund shares sold | 341,711 | |||
| Dividends | 1,249,841 | |||
| Fund expenses absorbed | 20,548 | |||
| Investment for trustee deferred compensation and retirement plans | 7,989 | |||
| Other assets | 31,264 | |||
| Total assets | 525,016,554 | |||
| Liabilities: | ||||
| Payable for: | ||||
| Investments purchased | 199,102 | |||
| Fund shares reacquired | 1,838,910 | |||
| Variation margin | 35,188 | |||
| Accrued fees to affiliates | 467,576 | |||
| Accrued other operating expenses | 100,608 | |||
| Trustee deferred compensation and retirement plans | 24,281 | |||
| Total liabilities | 2,665,665 | |||
| Net assets applicable to shares outstanding | $ | 522,350,889 | ||
| Net assets consist of: | ||||
| Shares of beneficial interest | $ | 467,308,956 | ||
| Undistributed net investment income | 2,696,630 | |||
| Undistributed net realized gain (loss) | (109,141,235 | ) | ||
| Unrealized appreciation | 161,486,538 | |||
| $ | 522,350,889 | |||
| Net Assets: | ||||
| Class A | $ | 400,322,844 | ||
| Class B | $ | 29,243,753 | ||
| Class C | $ | 73,922,863 | ||
| Class Y | $ | 18,861,429 | ||
| Shares outstanding, $0.01 par value per share, with an unlimited number of shares authorized: | ||||
| Class A | 27,236,055 | |||
| Class B | 2,023,147 | |||
| Class C | 5,171,629 | |||
| Class Y | 1,271,381 | |||
| Class A: | ||||
| Net asset value per share | $ | 14.70 | ||
| Maximum offering price per share (Net asset value of $14.70 divided by 94.50%) | $ | 15.56 | ||
| Class B: | ||||
| Net asset value and offering price per share | $ | 14.45 | ||
| Class C: | ||||
| Net asset value and offering price per share | $ | 14.29 | ||
| Class Y: | ||||
| Net asset value and offering price per share | $ | 14.84 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 Invesco S&P 500 Index Fund
Statement of Operations
For the six months ended February 29, 2012
(Unaudited)
| Investment income: | ||||
| Dividends | $ | 5,527,677 | ||
| Dividends from affiliates | 6,915 | |||
| Total investment income | 5,534,592 | |||
| Expenses: | ||||
| Advisory fees | 291,766 | |||
| Administrative services fees | 70,840 | |||
| Custodian fees | 33,078 | |||
| Distribution fees: | ||||
| Class A | 453,118 | |||
| Class B | 165,649 | |||
| Class C | 341,860 | |||
| Transfer agent fees | 468,124 | |||
| Trustees’ and officers’ fees and benefits | 23,581 | |||
| Other | 183,172 | |||
| Total expenses | 2,031,188 | |||
| Less: Fees waived and expense offset arrangement(s) | (101,678 | ) | ||
| Net expenses | 1,929,510 | |||
| Net investment income | 3,605,082 | |||
| Realized and unrealized gain (loss) from: | ||||
| Net realized gain (loss) from: | ||||
| Investment securities | (3,081,461 | ) | ||
| Futures contracts | 750,412 | |||
| (2,331,049 | ) | |||
| Change in net unrealized appreciation of: | ||||
| Investment securities | 58,746,056 | |||
| Futures contracts | 56,190 | |||
| 58,802,246 | ||||
| Net realized and unrealized gain | 56,471,197 | |||
| Net increase in net assets resulting from operations | $ | 60,076,279 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 Invesco S&P 500 Index Fund
Statement of Changes in Net Assets
For the six months ended February 29, 2012 and the year ended August 31, 2011
(Unaudited)
| Six months | ||||||||
| ended | Year ended | |||||||
| February 29, | August 31, | |||||||
| 2012 | 2011 | |||||||
| Operations: | ||||||||
| Net investment income | $ | 3,605,082 | $ | 6,814,993 | ||||
| Net realized gain (loss) | (2,331,049 | ) | (24,408,669 | ) | ||||
| Change in net unrealized appreciation | 58,802,246 | 106,353,853 | ||||||
| Net increase in net assets resulting from operations | 60,076,279 | 88,760,177 | ||||||
| Distributions to shareholders from net investment income: | ||||||||
| Class A | (6,590,989 | ) | (4,314,633 | ) | ||||
| Class B | (193,068 | ) | (343,807 | ) | ||||
| Class C | (511,460 | ) | (411,023 | ) | ||||
| Class Y | (356,716 | ) | (330,849 | ) | ||||
| Total distributions from net investment income | (7,652,233 | ) | (5,400,312 | ) | ||||
| Share transactions–net: | ||||||||
| Class A | (8,523,566 | ) | (22,350,952 | ) | ||||
| Class B | (12,180,778 | ) | (37,810,809 | ) | ||||
| Class C | (2,626,210 | ) | (9,480,958 | ) | ||||
| Class Y | 243,395 | (10,489,324 | ) | |||||
| Net increase (decrease) in net assets resulting from share transactions | (23,087,159 | ) | (80,132,043 | ) | ||||
| Net increase in net assets | 29,336,887 | 3,227,822 | ||||||
| Net assets: | ||||||||
| Beginning of period | 493,014,002 | 489,786,180 | ||||||
| End of period (includes undistributed net investment income of $2,696,630 and $6,743,781, respectively) | $ | 522,350,889 | $ | 493,014,002 | ||||
Notes to Financial Statements
February 29, 2012
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco S&P 500 Index Fund (the “Fund”) is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (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 twelve 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 to provide investment results that, before expenses, correspond to the total return (i.e., the combination of capital changes and income) of the Standard & Poor’s® 500 Composite Stock Price Index.
The Fund currently consists of four different classes of shares: Class A, Class B, Class C and Class Y. 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 Y 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. 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. 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 conversion date will be subject to a CDSC.
16 Invesco S&P 500 Index Fund
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 bonds) 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 ask 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 ask prices. For purposes of determining net asset value 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 bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. | ||
| Foreign securities (including foreign exchange contracts) 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 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 trade is not the current value as of the close of the NYSE. Foreign securities 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 are 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/ask 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. | ||
| 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. | ||
| B. | 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 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 Statement of Changes in Net Assets, or the net investment income per share and 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. | ||
| C. | 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 |
17 Invesco S&P 500 Index Fund
| 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 income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. | |
| E. | Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of 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 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. | ||
| F. | Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets. | |
| G. | 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. | |
| H. | 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 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. | |
| I. | Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities. | |
| J. | Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. |
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 pays 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 $2 billion | 0 | .12% | ||
| Over $2 billion | 0 | .10% | ||
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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may 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 Sub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2012, 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, and Class Y shares to 0.65%, 1.40%, 1.40% and 0.40%, respectively, of average daily net assets. 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
18 Invesco S&P 500 Index Fund
items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.
Further, the Adviser has contractually agreed, through at least June 30, 2012, 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 six months ended February 29, 2012, the Adviser waived advisory fees of $101,511.
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 six months ended February 29, 2012, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees.
Also, Invesco has entered into service agreements whereby State Street Bank and Trust Company (“SSB”) serves as the custodian, fund accountant and provides certain administrative services to the Fund.
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 are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 29, 2012, the expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.
Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”), an affiliate of the Adviser. The Fund has adopted a Plan of Distribution (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that the Fund will reimburse IDI for distribution related expenses that IDI incurs up to a maximum of the following annual rates: (1) Class A — up to 0.25% of the average daily net assets of Class A shares; (2) Class B — up to 1.00% of the average daily net assets of Class B shares; and (3) Class C — up to 1.00% of the average daily net assets of Class C shares.
In the case of Class B shares, provided that the Plan continues in effect, any cumulative expenses incurred by IDI, but not yet reimbursed to IDI, may be recovered through the payment of future distribution fees from the Fund pursuant to the Plan and contingent deferred sales charges paid by investors upon redemption of Class B shares.
For the six months ended February 29, 2012, expenses incurred under these agreements 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 six months ended February 29, 2012, IDI advised the Fund that IDI retained $20,899 in front-end sales commissions from the sale of Class A shares and $0, $8,378 and $1,799 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.
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 February 29, 2012. 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.
During the six months ended February 29, 2012, there were no significant transfers between investment levels.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Equity Securities | $ | 523,365,601 | $ | — | $ | — | $ | 523,365,601 | ||||||||
| Futures* | 125,494 | — | — | 125,494 | ||||||||||||
| Total Investments | $ | 523,491,095 | $ | — | $ | — | $ | 523,491,095 | ||||||||
| * | Unrealized appreciation |
19 Invesco S&P 500 Index Fund
NOTE 4—Investments in Affiliates
The Fund’s Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. The following is a summary of the transactions in and earnings from investments in Invesco Ltd. for the six months ended February 29, 2012.
| Change in | ||||||||||||||||||||||||||||
| Value | Purchases | Proceeds | Unrealized | Realized | Value | Dividend | ||||||||||||||||||||||
| 08/31/11 | at Cost | from Sales | Appreciation | Gain (Loss) | 02/29/12 | Income | ||||||||||||||||||||||
| Invesco Ltd. | $371,380 | $2,270 | $(29,368 | ) | $133,450 | $(10,173 | ) | $467,559 | $4,681 | |||||||||||||||||||
NOTE 5—Derivative Investments
Value of Derivative Instruments at Period-End
The table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of February 29, 2012:
| Value | ||||||||
| Risk Exposure/Derivative Type | Assets | Liabilities | ||||||
| Equity risk | ||||||||
Futures contracts(a) | $ | 125,494 | $ | — | ||||
| (a) | Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s variation margin receivable (payable) is reported within the Statement of Assets and Liabilities. |
Effect of Derivative Instruments for the six months ended February 29, 2012
The table below summarizes the gains on derivative instruments, detailed by primary risk exposure, recognized in earnings during the period:
| Location of Gain on | ||||
| Statement of Operations | ||||
| Futures* | ||||
| Realized Gain | ||||
| Equity risk | $ | 750,412 | ||
| Change in Unrealized Appreciation | ||||
| Equity risk | 56,190 | |||
| Total | $ | 806,602 | ||
| * | The average notional value outstanding of futures during the period was $27,095,675. |
| Open Futures Contracts | ||||||||||||||||
| Number of | Expiration | Notional | Unrealized | |||||||||||||
| Long Contracts | Contracts | Month | Value | Appreciation | ||||||||||||
E-Mini S&P 500 Index | 99 | March-2012 | $ | 6,753,780 | $ | 125,494 | ||||||||||
NOTE 6—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended February 29, 2012, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $167.
NOTE 7—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 are eligible to participate in a retirement plan that provides 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.
During the six months ended February 29, 2012, the Fund paid legal fees of $433 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.
20 Invesco S&P 500 Index Fund
NOTE 8—Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company (“SSB”), 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 9—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
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. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2011, which expires as follows:
| Capital Loss | ||||
| Expiration | Carryforward* | |||
| August 31, 2012 | $ | 20,294,770 | ||
| August 31, 2017 | 12,322,416 | |||
| August 31, 2018 | 19,847,353 | |||
| August 31, 2019 | 10,310,144 | |||
| $ | 62,774,683 | |||
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. |
NOTE 10—Investment Securities
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 six months ended February 29, 2012 was $8,092,588 and $34,968,273, respectively. Cost of investments 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 Investment Securities on a Tax Basis | ||||
| Aggregate unrealized appreciation of investment securities | $ | 187,481,745 | ||
| Aggregate unrealized (depreciation) of investment securities | (37,243,578 | ) | ||
| Net unrealized appreciation of investment securities | $ | 150,238,167 | ||
| Cost of investments for tax purposes is $373,127,034. | ||||
21 Invesco S&P 500 Index Fund
NOTE 11—Share Information
| Summary of Share Activity | ||||||||||||||||
| Six months ended | Year ended | |||||||||||||||
| February 29, 2012(a) | August 31, 2011 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Sold: | ||||||||||||||||
| Class A | 1,295,721 | $ | 17,777,597 | 3,081,251 | $ | 42,089,867 | ||||||||||
| Class B | 34,794 | 463,351 | 126,134 | 1,618,298 | ||||||||||||
| Class C | 239,112 | 3,131,111 | 396,254 | 5,177,490 | ||||||||||||
| Class Y | 102,476 | 1,415,080 | 363,427 | 5,144,798 | ||||||||||||
| Issued as reinvestment of dividends: | ||||||||||||||||
| Class A | 445,622 | 5,998,079 | 296,064 | 3,952,452 | ||||||||||||
| Class B | 12,813 | 169,909 | 23,301 | 305,005 | ||||||||||||
| Class C | 34,865 | 457,088 | 28,427 | 368,126 | ||||||||||||
| Class Y | 26,090 | 354,294 | 24,456 | 329,428 | ||||||||||||
| Automatic conversion of Class B shares to Class A shares: | ||||||||||||||||
| Class A | 686,857 | 9,459,874 | 1,898,796 | 25,882,392 | ||||||||||||
| Class B | (701,041 | ) | (9,459,874 | ) | (1,942,798 | ) | (25,882,392 | ) | ||||||||
| Reacquired: | ||||||||||||||||
| Class A | (3,095,848 | ) | (41,759,116 | ) | (6,906,032 | ) | (94,275,663 | ) | ||||||||
| Class B | (252,994 | ) | (3,354,164 | ) | (1,051,427 | ) | (13,851,720 | ) | ||||||||
| Class C | (476,251 | ) | (6,214,409 | ) | (1,143,111 | ) | (15,026,574 | ) | ||||||||
| Class Y | (112,965 | ) | (1,525,979 | ) | (1,149,798 | ) | (15,963,550 | ) | ||||||||
| Net increase (decrease) in share activity | (1,760,749 | ) | $ | (23,087,159 | ) | (5,955,056 | ) | $ | (80,132,043 | ) | ||||||
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 54% 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, and third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
22 Invesco S&P 500 Index Fund
NOTE 12 — Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||
| expenses | ||||||||||||||||||||||||||||||||||||||||||||||||
| to average | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||
| Net gains | net assets | expenses | ||||||||||||||||||||||||||||||||||||||||||||||
| (losses) on | with fee | to average net | Ratio of net | |||||||||||||||||||||||||||||||||||||||||||||
| Net asset | securities | Dividends | Net | waivers | assets without | investment | ||||||||||||||||||||||||||||||||||||||||||
| value, | Net | (both | Total from | from net | Net asset | assets, | and/or | fee waivers | income to | |||||||||||||||||||||||||||||||||||||||
| beginning | investment | realized and | investment | investment | value, end | Total | end of period | expenses | and/or expenses | average | Portfolio | |||||||||||||||||||||||||||||||||||||
| of period | income(a) | unrealized) | operations | income | of period | return(b) | (000s omitted)(c) | absorbed(d) | absorbed(d) | net assets(d) | turnover(e) | |||||||||||||||||||||||||||||||||||||
| Class A | ||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | $ | 13.25 | $ | 0.11 | $ | 1.58 | $ | 1.69 | $ | (0.24 | ) | $ | 14.70 | 12.96 | % | $ | 400,323 | 0.65 | %(f) | 0.69 | %(f) | 1.63 | %(f) | 1 | % | |||||||||||||||||||||||
| Year ended 08/31/11 | 11.36 | 0.19 | 1.85 | 2.04 | (0.15 | ) | 13.25 | 17.94 | 369,597 | 0.61 | 0.61 | 1.42 | 4 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 11.09 | 0.18 | 0.33 | 0.51 | (0.24 | ) | 11.36 | 4.44 | 335,583 | 0.60 | 0.69 | 1.47 | 7 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 13.94 | 0.21 | (2.83 | ) | (2.62 | ) | (0.23 | ) | 11.09 | (18.43 | ) | 349 | 0.59 | 0.74 | 2.11 | (g) | 7 | |||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 16.01 | 0.23 | (2.05 | ) | (1.82 | ) | (0.25 | ) | 13.94 | (11.55 | ) | 444 | 0.59 | 0.66 | 1.50 | (g) | 10 | |||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 14.17 | 0.21 | 1.85 | 2.06 | (0.22 | ) | 16.01 | 14.60 | 521 | 0.58 | 0.65 | 1.37 | (g) | 3 | ||||||||||||||||||||||||||||||||||
| Class B | ||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 12.92 | 0.06 | 1.55 | 1.61 | (0.08 | ) | 14.45 | 12.50 | 29,244 | 1.40 | (f) | 1.44 | (f) | 0.88 | (f) | 1 | ||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 11.10 | 0.09 | 1.80 | 1.89 | (0.07 | ) | 12.92 | 17.02 | 37,840 | 1.36 | 1.36 | 0.67 | 4 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 10.83 | 0.08 | 0.33 | 0.41 | (0.14 | ) | 11.10 | 3.68 | 64,102 | 1.35 | 1.44 | 0.72 | 7 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 13.54 | 0.13 | (2.73 | ) | (2.60 | ) | (0.11 | ) | 10.83 | (19.06 | ) | 110 | 1.34 | 1.49 | 1.36 | (h) | 7 | |||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 15.52 | 0.11 | (1.99 | ) | (1.88 | ) | (0.10 | ) | 13.54 | (12.20 | ) | 217 | 1.34 | 1.41 | 0.75 | (h) | 10 | |||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 13.72 | 0.09 | 1.79 | 1.88 | (0.08 | ) | 15.52 | 13.76 | 377 | 1.34 | 1.41 | 0.61 | (h) | 3 | ||||||||||||||||||||||||||||||||||
| Class C | ||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 12.79 | 0.06 | 1.54 | 1.60 | (0.10 | ) | 14.29 | 12.57 | 73,923 | 1.40 | (f) | 1.44 | (f) | 0.88 | (f) | 1 | ||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 10.99 | 0.10 | 1.77 | 1.87 | (0.07 | ) | 12.79 | 17.01 | (j) | 68,753 | 1.27 | (j) | 1.27 | (j) | 0.76 | (j) | 4 | |||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 10.74 | 0.08 | 0.33 | 0.41 | (0.16 | ) | 10.99 | 3.71 | 66,933 | 1.35 | 1.44 | 0.72 | 7 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 13.46 | 0.13 | (2.72 | ) | (2.59 | ) | (0.13 | ) | 10.74 | (19.01 | ) | 74 | 1.34 | 1.49 | 1.36 | (i) | 7 | |||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 15.46 | 0.11 | (1.98 | ) | (1.87 | ) | (0.13 | ) | 13.46 | (12.21 | ) | 104 | 1.33 | 1.40 | 0.76 | (i) | 10 | |||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 13.70 | 0.09 | 1.78 | 1.87 | (0.11 | ) | 15.46 | 13.68 | 132 | 1.33 | 1.40 | 0.62 | (i) | 3 | ||||||||||||||||||||||||||||||||||
| Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 13.40 | 0.13 | 1.60 | 1.73 | (0.29 | ) | 14.84 | 13.14 | 18,861 | 0.40 | (f) | 0.44 | (f) | 1.88 | (f) | 1 | ||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 11.48 | 0.23 | 1.86 | 2.09 | (0.17 | ) | 13.40 | 18.21 | 16,824 | 0.36 | 0.36 | 1.67 | 4 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 11.20 | 0.21 | 0.33 | 0.54 | (0.26 | ) | 11.48 | 4.72 | 23,168 | 0.35 | 0.44 | 1.72 | 7 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 14.09 | 0.25 | (2.87 | ) | (2.62 | ) | (0.27 | ) | 11.20 | (18.22 | ) | 23 | 0.34 | 0.49 | 2.36 | (k) | 7 | |||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 16.17 | 0.27 | (2.06 | ) | (1.79 | ) | (0.29 | ) | 14.09 | (11.28 | ) | 74 | 0.34 | 0.41 | 1.75 | (k) | 10 | |||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 14.31 | 0.25 | 1.86 | 2.11 | (0.25 | ) | 16.17 | 14.86 | 96 | 0.34 | 0.41 | 1.61 | (k) | 3 | ||||||||||||||||||||||||||||||||||
| (a) | Calculated using averages 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) | Net assets, end of period, for the years ended August 31, 2009 through August 31, 2007 are stated in millions. | |
| (d) | The ratios reflect the rebate of certain Fund expenses in connection with investments in a Morgan Stanley affiliate during the period. The effect of the rebate on the ratios for all classes was 0.00%, 0.00% and 0.00% for the years ended 2009, 2008 and 2007, respectively. The rebate was less than 0.005% for the years ended 2009, 2008 and 2007. | |
| (e) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. | |
| (f) | Ratios are annualized and based on average daily net assets (000’s omitted) of $369,960, $33,312, $68,775 and $16,903 for Class A, Class B, Class C and Class Y shares, respectively. | |
| (g) | Ratio of net investment income to average net assets without fee waivers and/or expense reimbursements was 1.96%, 1.43% and 1.30% for the years ended August 31, 2009 through August 31, 2007, respectively. | |
| (h) | Ratio of net investment income to average net assets without fee waivers and/or expense reimbursements was 1.21%, 0.68% and 0.54% for the years ended August 31, 2009 through August 31, 2007, respectively. | |
| (i) | Ratio of net investment income to average net assets without fee waivers and/or expense reimbursements was 1.21%, 0.69% and 0.55% for the years ended August 31, 2009 through August 31, 2007, respectively. | |
| (j) | 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 of .91% for the year ended August 31, 2011. | |
| (k) | Ratio of net investment income to average net assets without fee waivers and/or expense reimbursements was 2.21%, 1.68% and 1.54% for the years ended August 31, 2009 through August 31, 2007, respectively. |
23 Invesco S&P 500 Index 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, and redemption fees, 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 September 1, 2011 through February 29, 2012.
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, contingent deferred sales charges on redemptions, and redemption fees, 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.
| HYPOTHETICAL | ||||||||||||||||||||||||||||||
| (5% annual return before | ||||||||||||||||||||||||||||||
| ACTUAL | expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Ending | Expenses | Annualized | |||||||||||||||||||||||||
| Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||||||||||||||||||||
| Class | (09/01/11) | (02/29/12)1 | Period2 | (02/29/12) | Period2 | Ratio | ||||||||||||||||||||||||
| A | $ | 1,000.00 | $ | 1,129.60 | $ | 3.44 | $ | 1,021.63 | $ | 3.27 | 0.65 | % | ||||||||||||||||||
| B | 1,000.00 | 1,125.00 | 7.40 | 1,017.90 | 7.02 | 1.40 | ||||||||||||||||||||||||
| C | 1,000.00 | 1,125.70 | 7.40 | 1,017.90 | 7.02 | 1.40 | ||||||||||||||||||||||||
| Y | 1,000.00 | 1,131.40 | 2.12 | 1,022.87 | 2.01 | 0.40 | ||||||||||||||||||||||||
| 1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2011 through February 29, 2012, 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 182/366 to reflect the most recent fiscal half year. |
24 Invesco S&P 500 Index Fund
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Invesco privacy policy
You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.
Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.
Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.
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 811-09913 and 333-36074.
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 12 months ended June 30, 2011, 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 U.S. 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.
| MS-SPI-SAR-1 | Invesco Distributors, Inc. |
Invesco Global Real Estate Income Fund
Semiannual Report to Shareholders § February 29, 2012
Effective September 1, 2011, Invesco Select Real Estate Income Fund was renamed Invesco Global Real Estate Income Fund.
Nasdaq:
A: ASRAX § B: SARBX § C: ASRCX § Y: ASRYX § Institutional: ASRIX
A: ASRAX § B: SARBX § C: ASRCX § Y: ASRYX § Institutional: ASRIX
| 2 | Fund Performance | |
| 4 | Letters to Shareholders | |
| 5 | Schedule of Investments | |
| 10 | Financial Statements | |
| 12 | Notes to Financial Statements | |
| 18 | Financial Highlights | |
| 20 | Fund Expenses |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
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 | ||||||
Fund Performance
Performance summary
Fund vs. Indexes
Cumulative total returns, 8/31/11 to 2/29/12, 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 | 4.89 | % | ||
| Class B Shares | 4.49 | |||
| Class C Shares | 4.49 | |||
| Class Y Shares | 5.03 | |||
| Institutional Class Shares | 4.99 | |||
MSCI World Index▼(Broad Market Index) | 8.27 | |||
S&P 500 Index▼(Former Broad Market Index)* | 13.30 | |||
Custom Global Real Estate Income Index§ (Style-Specific Index) | 6.31 | |||
Custom Select Real Estate Income Indexw (Former Style-Specific Index)* | 7.88 | |||
Lipper Global Real Estate Funds Category Average▼ (Peer Group) | 4.49 | |||
Lipper Real Estate Funds Index▼ (Former Peer Group Index)* | 6.54 | |||
| Source(s): ▼Lipper Inc.; §Invesco, Lipper Inc.; wInvesco, Lipper Inc., Bloomberg | ||
| * | The Fund has elected to use the MSCI World Index as its broad-based securities market benchmark, the Custom Global Real Estate Income Index as its style specific benchmark and the Lipper Global Real Estate Funds Category Average as its peer group benchmark because those indices reflect the Fund’s investment style more appropriately than the S&P 500® Index, the Custom Select Real Estate Income Index and the Lipper Real Estate Funds Index. | |
The MSCI World IndexSM is an unmanaged index considered representative of stocks of developed countries.
The S&P 500® Index is an unmanaged index considered representative of the US stock market.
The Custom Global Real Estate Income Index, created by Invesco to serve as a benchmark for Invesco Global Real Estate Income Fund, is composed of the following indexes: FTSE EPRA/ NAREIT Developed Real Estate Index (50%) and Wachovia Hybrid and Preferred Securities REIT Index (50%).
The Custom Select Real Estate Income Index, created by Invesco to serve as a benchmark for Invesco Select Real Estate Income Fund, is composed of the following indexes: FTSE NAREIT Equity REIT Index (50%) and Wachovia Hybrid and Preferred Securities REIT Index (50%).
The Lipper Global Real Estate Funds Category Average represents an average of all funds in the Lipper Global Real Estate Funds category.
The Lipper Real Estate Funds Index is an unmanaged index considered representative of real estate funds tracked by Lipper.
The FTSE EPRA/NAREIT Developed Real Estate Index is an unmanaged index considered representative of global real estate companies and REITs.
The Wachovia Hybrid and Preferred Securities REIT Index measures the performance of US preferred shares.
The FTSE NAREIT Equity REIT Index is an unmanaged index considered representative of US REITs.
The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
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.
2 Invesco Global Real Estate Income Fund
Average Annual Total Returns
As of 2/29/12, including maximum applicable sales
charges
charges
| Class A Shares | ||||||||
| Inception (5/31/02) | 9.24 | % | ||||||
| 5 | Years | -0.42 | ||||||
| 1 | Year | -0.47 | ||||||
| Class B Shares | ||||||||
| Inception | 8.86 | % | ||||||
| 5 | Years | -0.26 | ||||||
| 1 | Year | -0.54 | ||||||
| Class C Shares | ||||||||
| Inception | 8.86 | % | ||||||
| 5 | Years | -0.06 | ||||||
| 1 | Year | 3.46 | ||||||
| Class Y Shares | ||||||||
| Inception | 9.93 | % | ||||||
| 5 | Years | 0.83 | ||||||
| 1 | Year | 5.54 | ||||||
| Institutional Class Shares | ||||||||
| Inception | 10.08 | % | ||||||
| 5 | Years | 1.13 | ||||||
| 1 | Year | 5.66 | ||||||
On March 12, 2007, the Fund reorganized from a Closed-End Fund to an Open-End Fund. Performance shown prior to that date is that of the Closed-End Fund’s Common shares and includes the fees applicable to Common shares. The Closed-End Fund’s Common shares performance reflects any applicable fee waivers or expense reimbursements.
Class B shares incepted on March 9, 2007. Performance shown prior to that date is that of Class A shares, restated to reflect the higher 12b-1 fees applicable to Class B shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.
Class C shares incepted on March 9, 2007. Performance shown prior to that date is that of Class A shares, restated to reflect the higher 12b-1 fees applicable to Class C shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.
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 A share performance reflects any applicable fee waivers or expense reimbursements.
Average Annual Total Returns
As of 12/31/11, the most recent calendar quarter-end, including maximum applicable sales charges
| Class A Shares | ||||||||
| Inception (5/31/02) | 8.76 | % | ||||||
| 5 | Years | -1.12 | ||||||
| 1 | Year | -1.99 | ||||||
| Class B Shares | ||||||||
| Inception | 8.39 | % | ||||||
| 5 | Years | -0.97 | ||||||
| 1 | Year | -2.12 | ||||||
| Class C Shares | ||||||||
| Inception | 8.39 | % | ||||||
| 5 | Years | -0.78 | ||||||
| 1 | Year | 1.86 | ||||||
| Class Y Shares | ||||||||
| Inception | 9.45 | % | ||||||
| 5 | Years | 0.09 | ||||||
| 1 | Year | 3.78 | ||||||
| Institutional Class Shares | ||||||||
| Inception | 9.60 | % | ||||||
| 5 | Years | 0.39 | ||||||
| 1 | Year | 3.91 | ||||||
Institutional Class shares incepted on March 9, 2007. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.
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 (reinvested at net asset value, except for periods prior to March 12, 2007 where reinvestments were made at the lower of the Closed-End Fund’s net asset value or market price), changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. 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 Y and Institutional Class shares was 1.31%, 2.06%, 2.06%, 1.06% and 0.97%, 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.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses. Class Y and Institutional class shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
Fund performance was positively impacted by a temporary 2% fee on redemptions that was in effect from March 12, 2007 to March 12, 2008. Without income from this temporary fee, returns would have been lower.
Had the adviser not waived fees and/ or reimbursed expenses in the past, performance would have been lower.
3 Invesco Global Real Estate Income Fund
Letters to Shareholders
Bruce Crockett
Dear Fellow Shareholders:
Throughout 2011, we experienced volatile, challenging markets that presented both opportunities and risks for investors. Based on everything I’ve read, this year could potentially be just as interesting, with continued economic uncertainty and market volatility.
With this in mind, you’ll want to stay informed regarding the markets and keep up to date with news that affects your investment portfolio. Invesco’s website, invesco.com/us, provides a wealth of information about your investments and news regarding global markets.
Regardless of economic conditions and market trends, the Invesco Funds Board of Trustees remains committed to putting your interests first. Throughout 2011, we worked to manage costs, and this remains a continuing focus of your Board. We will continue to oversee the funds with the strong sense of responsibility for your money and your continued trust that we’ve always maintained.
I would like to close by thanking Bob Baker for his distinguished 30-year service with the Invesco Funds Board and his unflagging commitment to our funds’ shareholders. As always, I encourage you to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving you in 2012.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Independent Chair
Invesco Funds Board of Trustees
Philip Taylor
Dear Shareholders:
This report provides important information about your Fund, including its short- and long-term performance. Also, this report includes a listing of investments held by your Fund at the close of the reporting period.
Investors are likely to confront both opportunities and challenges in 2012. As we saw in 2011, market sentiment can change suddenly and dramatically – and certainly without advance notice – depending on economic developments and world events. Similarly, your own situation, needs and goals can change, requiring adjustments in your financial strategy.
In addition to meeting with your financial adviser regularly to discuss your individual situation, you also may find it helpful to stay abreast of market trends and developments. Doing so may provide reassurance in times of economic uncertainty and market volatility such as we saw last year and may see again this year.
Invesco can help you stay informed about your investments and market trends. On our website, invesco.com/us, we provide timely market updates and commentary from many of our portfolio managers and other investment professionals. Also on our website, you can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer at invesco.com/us.
Invesco can help you stay informed about your investments and market trends. On our website, invesco.com/us, we provide timely market updates and commentary from many of our portfolio managers and other investment professionals. Also on our website, you can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer at invesco.com/us.
If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.
All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.
Sincerely,
Philip Taylor
Senior Managing Director, Invesco Ltd.
Senior Managing Director, Invesco Ltd.
4 Invesco Global Real Estate Income Fund
Schedule of Investments
February 29, 2012
(Unaudited)
| Shares | Value | |||||||
| Real Estate Investment Trusts, Common Stocks & Other Equity Interests–50.63% | ||||||||
| Australia–4.18% | ||||||||
| BWP Trust | 612,443 | $ | 1,194,901 | |||||
| CFS Retail Property Trust | 900,183 | 1,703,390 | ||||||
| Challenger Diversified Property Group | 3,324,438 | 1,870,994 | ||||||
| Charter Hall Group | 308,878 | 708,146 | ||||||
| Charter Hall Retail REIT | 819,593 | 2,750,012 | ||||||
| Commonwealth Property Office Fund | 792,263 | 826,678 | ||||||
| Dexus Property Group | 671,099 | 640,416 | ||||||
| Investa Office Fund | 2,732,265 | 1,824,538 | ||||||
| Mirvac Group | 1,592,653 | 2,037,859 | ||||||
| Stockland | 190,845 | 645,057 | ||||||
| Westfield Retail Trust | 449,149 | 1,203,086 | ||||||
| 15,405,077 | ||||||||
| Belgium–0.46% | ||||||||
| Befimmo S.C.A. Sicafi | 8,429 | 540,641 | ||||||
| Intervest Offices & Warehouses | 43,310 | 1,148,096 | ||||||
| 1,688,737 | ||||||||
| Canada–5.29% | ||||||||
| Artis REIT | 125,800 | 2,019,358 | ||||||
| Boardwalk REIT | 34,500 | 1,939,514 | ||||||
| Brookfield Canada Office Properties | 75,901 | 1,942,189 | ||||||
| Calloway REIT | 57,000 | 1,558,157 | ||||||
| Canadian Apartment Properties REIT | 71,800 | 1,670,425 | ||||||
| Chartwell Seniors Housing REIT | 170,700 | 1,581,290 | ||||||
| Chartwell Seniors Housing REIT | 82,700 | 766,097 | ||||||
| Cominar REIT | 73,600 | 1,707,098 | ||||||
| Dundee REIT | 54,900 | 1,907,829 | ||||||
| H&R REIT | 68,600 | 1,636,864 | ||||||
| Primaris Retail REIT | 73,100 | 1,603,193 | ||||||
| RioCan REIT | 41,900 | 1,147,922 | ||||||
| 19,479,936 | ||||||||
| China–0.61% | ||||||||
| Guangzhou R&F Properties Co. Ltd.–Class H | 656,000 | 866,074 | ||||||
| Shimao Property Holdings Ltd. | 555,500 | 722,068 | ||||||
| Soho China Ltd. | 918,000 | 666,091 | ||||||
| 2,254,233 | ||||||||
| Finland–0.03% | ||||||||
| Sponda Oyj | 30,000 | 126,283 | ||||||
| France–0.73% | ||||||||
| Mercialys | 77,987 | 2,705,204 | ||||||
| Germany–0.43% | ||||||||
| Alstria Office REIT-AG | 65,928 | 739,467 | ||||||
| Deutsche Euroshop AG | 24,361 | 838,866 | ||||||
| 1,578,333 | ||||||||
| Hong Kong–2.40% | ||||||||
| Champion REIT | 2,937,000 | 1,303,704 | ||||||
| Hang Lung Properties Ltd. | 718,000 | 2,706,042 | ||||||
| Hongkong Land Holdings Ltd. | 127,000 | 697,890 | ||||||
| Kerry Properties Ltd. | 429,000 | 2,023,921 | ||||||
| Sino Land Co. Ltd. | 1,179,000 | 2,103,783 | ||||||
| 8,835,340 | ||||||||
| Japan–4.95% | ||||||||
| Advance Residence Investment | 588 | 1,091,628 | ||||||
| Frontier Real Estate Investment Corp. | 173 | 1,415,242 | ||||||
| Global One Real Estate Investment Corp. | 172 | 1,263,181 | ||||||
| Industrial & Infrastructure Fund Investment Corp. | 322 | 1,717,148 | ||||||
| Japan Prime Realty Investment Corp. | 377 | 998,037 | ||||||
| Japan Real Estate Investment Corp. | 188 | 1,660,524 | ||||||
| Kenedix Realty Investment Corp. | 206 | 709,558 | ||||||
| Mitsui Fudosan Co., Ltd. | 69,000 | 1,311,902 | ||||||
| Nippon Building Fund Inc. | 137 | 1,310,678 | ||||||
| Nomura Real Estate Office Fund, Inc. | 309 | 1,788,467 | ||||||
| Nomura Real Estate Residential Fund, Inc. | 282 | 1,368,545 | ||||||
| ORIX JREIT Inc. | 99 | 462,787 | ||||||
| Tokyu Land Corp. | 395,000 | 1,903,804 | ||||||
| United Urban Investment Corp. | 1,122 | 1,233,938 | ||||||
| 18,235,439 | ||||||||
| Netherlands–0.72% | ||||||||
| Corio N.V. | 45,624 | 2,188,575 | ||||||
Eurocommercial Properties N.V.(a) | 12,827 | 461,430 | ||||||
| 2,650,005 | ||||||||
| New Zealand–1.84% | ||||||||
| AMP NZ Office Ltd. | 4,038,434 | 2,925,768 | ||||||
| Goodman Property Trust | 2,277,743 | 1,898,499 | ||||||
| Kiwi Income Property Trust | 2,293,202 | 1,940,054 | ||||||
| 6,764,321 | ||||||||
| Singapore–2.00% | ||||||||
| Ascendas REIT | 907,000 | 1,487,239 | ||||||
| Ascott Residence Trust | 620,000 | 525,987 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 Invesco Global Real Estate Income Fund
| Shares | Value | |||||||
Singapore–(continued) | ||||||||
| CapitaCommercial Trust | 547,000 | $ | 515,992 | |||||
| Fortune REIT | 1,365,000 | 693,394 | ||||||
| Frasers Centrepoint Trust | 1,387,000 | 1,669,329 | ||||||
| Mapletree Logistics Trust | 474,000 | 340,980 | ||||||
| Starhill Global REIT | 1,826,000 | 890,305 | ||||||
| Suntec REIT | 1,263,000 | 1,237,261 | ||||||
| 7,360,487 | ||||||||
| South Africa–1.83% | ||||||||
| Capital Property Fund | 429,034 | 503,100 | ||||||
| Fountainhead Property Trust | 1,911,557 | 1,844,641 | ||||||
| Growthpoint Properties Ltd. | 950,188 | 2,596,006 | ||||||
| Hyprop Investments Ltd. | 93,506 | 702,570 | ||||||
| Resilient Property Income Fund Ltd. | 49,005 | 239,709 | ||||||
| SA Corporate Real Estate Fund | 2,005,817 | 859,674 | ||||||
| 6,745,700 | ||||||||
| Sweden–0.39% | ||||||||
| Castellum AB | 45,000 | 592,177 | ||||||
| Hufvudstaden AB | 77,090 | 855,481 | ||||||
| 1,447,658 | ||||||||
| United Kingdom–4.47% | ||||||||
| British Land Co. PLC | 633,013 | 4,735,907 | ||||||
| Hammerson PLC | 390,843 | 2,436,028 | ||||||
| Hansteen Holdings PLC | 869,848 | 1,037,816 | ||||||
| Land Securities Group PLC | 348,695 | 3,744,252 | ||||||
| Safestore Holdings PLC | 493,771 | 934,734 | ||||||
| SEGRO PLC | 959,030 | 3,585,219 | ||||||
| 16,473,956 | ||||||||
| United States–20.30% | ||||||||
| Acadia Realty Trust | 37,500 | 794,625 | ||||||
| Alexandria Real Estate Equities, Inc. | 9,100 | 652,379 | ||||||
| AvalonBay Communities, Inc. | 16,500 | �� | 2,139,555 | |||||
| BioMed Realty Trust, Inc. | 74,500 | 1,372,290 | ||||||
| Cohen & Steers Quality Income Realty Fund, Inc. | 201,773 | 1,890,613 | ||||||
| Corporate Office Properties Trust | 33,500 | 821,420 | ||||||
| DCT Industrial Trust Inc. | 122,200 | 691,652 | ||||||
| DDR Corp. | 58,700 | 829,431 | ||||||
| DiamondRock Hospitality Co. | 211,900 | 2,110,524 | ||||||
| Digital Realty Trust, Inc. | 78,900 | 5,720,250 | ||||||
| Duke Realty Corp. | 49,500 | 687,060 | ||||||
| DuPont Fabros Technology Inc. | 18,700 | 428,230 | ||||||
| Equity Lifestyle Properties, Inc. | 22,600 | 1,503,126 | ||||||
| Essex Property Trust, Inc. | 13,200 | 1,847,868 | ||||||
| Federal Realty Investment Trust | 7,400 | 705,590 | ||||||
| General Growth Properties, Inc. | 31,500 | 512,505 | ||||||
| Government Properties Income Trust | 188,950 | 4,408,204 | ||||||
| Healthcare Realty Trust, Inc. | 142,800 | 2,951,676 | ||||||
| Highwoods Properties, Inc. | 20,000 | 640,000 | ||||||
| Hospitality Properties Trust | 381,300 | 9,429,549 | ||||||
| Inland Real Estate Corp. | 368,350 | 3,193,595 | ||||||
| Liberty Property Trust | 154,600 | 5,244,032 | ||||||
| LTC Properties, Inc. | 26,400 | 814,704 | ||||||
| Mack-Cali Realty Corp. | 57,700 | 1,650,220 | ||||||
| National Retail Properties Inc. | 263,500 | 7,022,275 | ||||||
| Neuberger Berman Real Estate Securities Income Fund Inc. | 9,750 | 40,365 | ||||||
| Pebblebrook Hotel Trust | 34,000 | 728,620 | ||||||
| Piedmont Office Realty Trust Inc.–Class A | 145,900 | 2,570,758 | ||||||
| Public Storage | 6,200 | 831,234 | ||||||
| RLJ Lodging Trust | 40,900 | 716,568 | ||||||
| Senior Housing Properties Trust | 316,950 | 6,782,730 | ||||||
| Ventas, Inc. | 32,500 | 1,817,400 | ||||||
| Weingarten Realty Investors | 27,900 | 694,710 | ||||||
| Weyerhaeuser Co. | 123,200 | 2,573,648 | ||||||
| 74,817,406 | ||||||||
| Total Common Stocks & Other Equity Interests (Cost $175,903,640) | 186,568,115 | |||||||
| Preferred Stocks–24.36% | ||||||||
| United States–24.36% | ||||||||
| Alexandria Real Estate Equities Inc., Series D, $1.75 Conv. Pfd. | 35,000 | 896,875 | ||||||
| BioMed Realty Trust, Inc., Series A, 7.38% Pfd. | 79,600 | 2,021,840 | ||||||
| Brandywine Realty Trust, Series D, 7.38% Pfd. | 10,355 | 262,189 | ||||||
| CBL & Associates Properties, Inc., Series D, 7.38% Pfd. | 184,700 | 4,663,675 | ||||||
| Corporate Office Properties Trust, Series J, 7.63% Pfd. | 22,000 | 558,360 | ||||||
| DuPont Fabros Technology, Inc., Series A, 7.88% Pfd. | 59,400 | 1,538,460 | ||||||
| Series B, 7.63% Pfd. | 140,400 | 3,573,180 | ||||||
| Eagle Hospitality Properties Trust Inc., Series A, 8.25% Pfd. | 195,800 | 507,612 | ||||||
| Entertainment Properties Trust, Series E, $2.25 Conv. Pfd. | 54,400 | 1,535,168 | ||||||
| Equity Lifestyle Properties, Inc., Series A, 8.03% Pfd. | 4,400 | 115,115 | ||||||
| Essex Property Trust, Inc., Series H, 7.13% Pfd. | 120,000 | 3,183,756 | ||||||
| Health Care REIT, Inc., Series I, $3.25 Conv. Pfd. | 82,500 | 4,380,750 | ||||||
| Series J, 6.50% Pfd. | 80,000 | 2,000,000 | ||||||
| Hersha Hospitality Trust, Series A, 8.00% Pfd. | 7,520 | 190,782 | ||||||
| Hospitality Properties Trust, Series C, 7.00% Pfd. | 98,800 | 2,492,724 | ||||||
| Series D, 7.13% Pfd. | 80,125 | 2,046,393 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Global Real Estate Income Fund
| Shares | Value | |||||||
United States–(continued) | ||||||||
| Inland Real Estate Corp., Series A, 8.13% Pfd. | 39,385 | $ | 1,001,954 | |||||
| Kilroy Realty Corp., Series E, 7.80% Pfd. | 86,195 | 2,223,831 | ||||||
| Series F, 7.50% Pfd. | 232,500 | 5,891,550 | ||||||
| LaSalle Hotel Properties, Series D, 7.50% Pfd. | 62,833 | 1,586,533 | ||||||
| Series G, 7.25% Pfd. | 91,450 | 2,264,302 | ||||||
| Series H, 7.50% Pfd. | 103,900 | 2,668,152 | ||||||
| National Retail Properties Inc., Series C, 7.38% Pfd. | 90,450 | 2,264,868 | ||||||
| Series D, 6.63% Pfd. | 136,000 | 3,402,720 | ||||||
| Pebblebrook Hotel Trust, Series A, 7.88% Pfd. | 98,700 | 2,593,096 | ||||||
| ProLogis, Inc., Series Q, 8.54% Pfd. | 950 | 55,070 | ||||||
| PS Business Parks, Inc. Series R, 6.88% Pfd. | 45,000 | 1,197,000 | ||||||
| Series S, 6.45% Pfd. | 120,000 | 3,048,000 | ||||||
| Public Storage, 5.90% Pfd. | 40,000 | 1,024,100 | ||||||
| 6.88% Pfd. | 23,100 | 652,344 | ||||||
| Series M, 6.63% Pfd. | 87,300 | 2,229,642 | ||||||
| Series Q, 6.50% Pfd. | 60,000 | 1,689,600 | ||||||
| Series R, 6.35% Pfd. | 120,000 | 3,250,800 | ||||||
| Regency Centers, Series 6, 6.63% Pfd. | 120,000 | 3,042,300 | ||||||
| SL Green Realty Corp., Series C, 7.63% Pfd. | 181,100 | 4,599,940 | ||||||
| Series D, 7.88% Pfd. | 29,200 | 747,520 | ||||||
| Sunstone Hotel Investors, Inc., Series A, 8.00% Pfd. | 60,000 | 1,492,800 | ||||||
| Series D, 8.00% Pfd. | 36,000 | 889,200 | ||||||
| Vornado Realty Trust, Series E, 7.00% Pfd. | 112,863 | 2,925,409 | ||||||
| Series H, 6.75% Pfd. | 91,800 | 2,350,080 | ||||||
| Series I, 6.63% Pfd. | 180,900 | 4,598,478 | ||||||
| Series J, 6.88% Pfd. | 80,000 | 2,112,000 | ||||||
| Total Preferred Stocks (Cost $86,741,959) | 89,768,168 | |||||||
| Principal | ||||||||
| Amount | ||||||||
| Mortgage-Backed Securities–13.90% | ||||||||
| Ireland–0.52% | ||||||||
Titan Europe PLC, Series 2005-CT1X, Class C, Floating Rate Pass Through Ctfs., 1.69%, 07/28/14(b)(f) | GBP | 1,270,321 | 1,934,941 | |||||
| United Kingdom–0.69% | ||||||||
Eclipse Ltd., Series 2006-4, Class A, Floating Rate Pass Through Ctfs., 1.33%, 10/25/18(b)(f) | GBP | 1,915,205 | 2,528,768 | |||||
| United States–12.69% | ||||||||
Banc of America Large Loan Inc., Series 2006-BIX1, Class E, Floating Rate Pass Through Ctfs., 0.49%, 10/15/19(b)(c) | $ | 1,900,000 | 1,816,010 | |||||
Bear Stearns Commercial Mortgage Securities, Series 2004-PWR6, Class B, Variable Rate Pass Through Ctfs. 4.95%, 11/11/41(b)(c) | 50,000 | 47,824 | ||||||
Series 2005-PWR7, Class AJ, Variable Rate Pass Through Ctfs., 5.17%, 02/11/41(b) | 2,000,000 | 2,067,945 | ||||||
Series 2005-PWR8, Class AJ, Pass Through Ctfs., 4.75%, 06/11/41 | 3,200,000 | 3,102,427 | ||||||
Series 2005-T18, Class AJ, Variable Rate Pass Through Ctfs., 5.01%, 02/13/42(b) | 350,000 | 367,885 | ||||||
Series 2006-T22, Class AJ, Variable Rate Pass Through Ctfs., 5.54%, 04/12/38(b) | 2,900,000 | 2,649,876 | ||||||
Series 2006-T24, Class AJ, Variable Rate Pass Through Ctfs. 5.60%, 10/12/41(b) | 5,950,000 | 5,034,792 | ||||||
Citigroup Commercial Mortgage Trust, Series 2005-EMG, Class D, Variable Rate Pass Through Ctfs., 5.03%, 09/20/51(b)(c) | 500,000 | 493,820 | ||||||
Series 2006-C5, Class AMP3, Variable Rate Pass Through Ctfs., 5.50%, 10/15/49(b)(c) | 3,269,285 | 3,092,825 | ||||||
Credit Suisse First Boston Mortgage Securities Corp., Series 2003-C3, Class G, Variable Rate Pass Through Ctfs., 4.62%, 05/15/38(b)(c) | 25,000 | 22,767 | ||||||
DLJ Commercial Mortgage Corp., Series 1998-CG1, Class B4, Variable Rate Pass Through Ctfs., 7.21%, 06/10/31(b)(c) | 340,000 | 357,997 | ||||||
GMAC Commercial Mortgage Securities Inc., Series 1998-C2, Class F, Pass Through Ctfs., 6.50%, 05/15/35(c) | 171,654 | 180,605 | ||||||
GS Mortgage Securities Corp. II, Series 2003-C1, Class J, Variable Rate Pass Through Ctfs., 5.31%, 01/10/40(b)(c) | 900,000 | 862,873 | ||||||
Series 2011-ALF, Class D, Pass Through Ctfs., 4.21%, 02/10/21(c) | 3,500,000 | 3,351,950 | ||||||
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2002-CIB5, Class S2, Variable Rate Pass Through Ctfs., 8.37%, 10/12/37(b)(c) | 1,885,303 | 1,921,936 | ||||||
Series 2011-C4, Class TAC1, Pass Through Ctfs., 7.99%, 07/15/46(c) | 1,979,468 | 2,097,618 | ||||||
LB-UBS Commercial Mortgage Trust, Series 2002-C7, Class B, Pass Through Ctfs., 5.08%, 01/15/36 | 96,000 | 98,338 | ||||||
Series 2005-C1, Class C, Variable Rate Pass Through Ctfs. 4.84%, 02/15/40(c) | 170,000 | 159,081 | ||||||
Series 2006-C4, Class AJ, Variable Rate Pass Through Ctfs., 5.89%, 06/15/38(b) | 5,260,000 | 4,408,033 | ||||||
Merrill Lynch Mortgage Trust, Series 2004-MKB1, Class B, Variable Rate Pass Through Ctfs., 5.28%, 02/12/42(b) | 25,000 | 24,836 | ||||||
Series 2005-CIP1, Class AJ,, Variable Rate Pass Through Ctfs.,, 5.14%, 07/12/38(b) | 2,850,000 | 2,623,352 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Global Real Estate Income Fund
| Principal | ||||||||
| Amount | Value | |||||||
United States–(continued) | ||||||||
Morgan Stanley Capital I, Series 2005-HQ7, Class AJ, Variable Rate Pass Through Ctfs., 5.20%, 11/14/42(b) | $ | 5,360,000 | $ | 5,417,783 | ||||
Series 2006-IQ11, Class B, Variable Rate Pass Through Ctfs., 5.73%, 10/15/42(b) | 270,000 | 234,670 | ||||||
TIAA Seasoned Commercial Mortgage Trust, Series 2007-C4, Class AJ, Variable Rate Pass Through Ctfs., 5.65%, 08/15/39(b) | 3,148,000 | 3,099,727 | ||||||
Wachovia Bank Commercial Mortgage Trust, Series 2003-C5, Class B, Pass Through Ctfs., 4.11%, 06/15/35 | 180,000 | 184,987 | ||||||
Series 2004-C15, Class 175B,, Variable Rate Pass Through Ctfs., 5.65%, 10/15/41(b)(c) | 2,700,000 | 2,664,288 | ||||||
Series 2004-C15, Class 175C,, Variable Rate Pass Through Ctfs., 5.65%, 10/15/41(b)(c) | 396,000 | 386,324 | ||||||
| 46,770,569 | ||||||||
| Total Mortgage-Backed Securities (Cost $50,362,233) | 51,234,278 | |||||||
| U.S. Dollar Denominated Bonds & Notes–3.77% | ||||||||
| Brazil–0.50% | ||||||||
BR Properties S.A., Sr. Unsec. Gtd. Notes, 9.00%(c)(d) | 1,850,000 | 1,858,116 | ||||||
| China–0.99% | ||||||||
Country Garden Holdings Co. Ltd., Sr. Unsec. Notes, 11.75%, 09/10/14(c) | 1,000,000 | 1,057,498 | ||||||
Franshion Development Ltd., Sr. Unsec. Gtd. Notes, 6.75%, 04/15/21(c) | 1,000,000 | 887,319 | ||||||
Shimao Property Holdings Ltd., Sr. Sec. Gtd. Notes, 8.00%, 12/01/16(c) | 1,900,000 | 1,700,500 | ||||||
| 3,645,317 | ||||||||
| United States–2.28% | ||||||||
| Brookdale Senior Living Inc., Sr. Unsec. Conv. Notes, 2.75%, 06/15/18 | 2,000,000 | 1,877,500 | ||||||
Host Hotels & Resorts L.P., Sr. Unsec. Gtd. Conv. Notes, 2.63%, 04/15/17(c)(e) | 2,000,000 | 2,010,000 | ||||||
| Omega Healthcare Investors, Inc., Sr. Unsec. Gtd. Global Notes, | ||||||||
| 6.75%, 10/15/22 | 1,450,000 | 1,564,188 | ||||||
| 7.00%, 01/15/16 | 2,000,000 | 2,051,250 | ||||||
| Senior Housing Properties Trust, Sr. Unsec. Notes, 4.30%, 01/15/16 | 900,000 | 903,600 | ||||||
| 8,406,538 | ||||||||
| Total U.S. Dollar Denominated Bonds & Notes (Cost $13,352,706) | 13,909,971 | |||||||
| Non U.S. Dollar Denominated Bonds & Notes–3.37%(f) | ||||||||
| Australia–3.37% | ||||||||
CFS Retail Property Trust, Sr. Unsec. Conv. Euro Notes, 5.75%, 07/04/14(e) | AUD | 2,100,000 | 2,268,084 | |||||
| Mirvac Group Finance Ltd., Sr. Unsec. Gtd. MTN, 8.00%, 09/16/16 | AUD | 5,000,000 | 5,549,401 | |||||
| Stockland Trust Management Ltd., Sr. Unsec. Gtd. MTN, 7.50%, 07/01/16 | AUD | 2,250,000 | 2,504,379 | |||||
| Westfield Retail Trust, DIP, Sr. Unsec. Gtd. MTN, 7.00%, 10/18/16 | AUD | 1,900,000 | 2,099,497 | |||||
| Total Non U.S. Dollar Denominated Bonds & Notes (Cost $11,788,768) | 12,421,361 | |||||||
| Shares | ||||||||
| Money Market Funds–3.84% | ||||||||
Liquid Assets Portfolio–Institutional Class(g) | 7,075,071 | 7,075,071 | ||||||
Premier Portfolio–Institutional Class(g) | 7,075,071 | 7,075,070 | ||||||
| Total Money Market Funds (Cost $14,150,141) | 14,150,141 | |||||||
| TOTAL INVESTMENTS–99.87% (Cost $352,299,447) | 368,052,034 | |||||||
| OTHER ASSETS LESS LIABILITIES–0.13% | 474,658 | |||||||
| NET ASSETS–100.00% | $ | 368,526,692 | ||||||
Investment Abbreviations:
| AUD | – Australian Dollar | |
| Conv. | – Convertible | |
| Ctfs. | – Certificates | |
| DIP | – Debtor-in-possession | |
| GBP | – British Pound | |
| Gtd. | – Guaranteed | |
| MTN | – Medium-Term Notes | |
| Pfd. | – Preferred | |
| REIT | – Real Estate Investment Trust | |
| Sr. | – Senior | |
| Unsec. | – Unsec. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Global Real Estate Income Fund
Notes to Schedule of Investments:
| (a) | Non-income producing security. | |
| (b) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 29, 2012. | |
| (c) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at February 29, 2012 was $24,969,352, which represented 6.78% of the Fund’s Net Assets. | |
| (d) | Perpetual bond with no specified maturity date. | |
| (e) | Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put. | |
| (f) | Foreign denominated security. Principal amount is denominated in currency indicated. | |
| (g) | The money market fund and the Fund are affiliated by having the same investment adviser. |
By country, based on Net Assets
as of February 29, 2012
| United States | 59.6 | % | ||
| Australia | 7.6 | |||
| Canada | 5.3 | |||
| United Kingdom | 5.2 | |||
| Japan | 4.9 | |||
| Hong Kong | 2.4 | |||
| Singapore | 2.0 | |||
| Countries each less than 2.0% of portfolio | 9.0 | |||
| Money Market Funds Plus Other Assets Less Liabilities | 4.0 | |||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Global Real Estate Income Fund
Statement of Assets and Liabilities
February 29, 2012
(Unaudited)
| Assets: | ||||
| Investments, at value (Cost $338,149,306) | $ | 353,901,893 | ||
| Investments in affiliated money market funds, at value and cost | 14,150,141 | |||
| Total investments, at value (Cost $352,299,447) | 368,052,034 | |||
| Cash | 1,659,763 | |||
| Foreign currencies, at value (Cost $478,665) | 459,551 | |||
| Receivable for: | ||||
| Investments sold | 11,500,037 | |||
| Fund shares sold | 3,409,823 | |||
| Dividends and interest | 1,234,333 | |||
| Investment for trustee deferred compensation and retirement plans | 30,735 | |||
| Other assets | 64,346 | |||
| Total assets | 386,410,622 | |||
| Liabilities: | ||||
| Payable for: | ||||
| Investments purchased | 17,069,613 | |||
| Fund shares reacquired | 511,812 | |||
| Accrued fees to affiliates | 164,350 | |||
| Accrued other operating expenses | 47,120 | |||
| Trustee deferred compensation and retirement plans | 91,035 | |||
| Total liabilities | 17,883,930 | |||
| Net assets applicable to shares outstanding | $ | 368,526,692 | ||
| Net assets consist of: | ||||
| Shares of beneficial interest | $ | 353,597,268 | ||
| Undistributed net investment income | 2,139,344 | |||
| Undistributed net realized gain (loss) | (2,951,013 | ) | ||
| Unrealized appreciation | 15,741,093 | |||
| $ | 368,526,692 | |||
| Net Assets: | ||||
| Class A | $ | 228,668,200 | ||
| Class B | $ | 1,671,235 | ||
| Class C | $ | 32,222,077 | ||
| Class Y | $ | 61,162,224 | ||
| Institutional Class | $ | 44,802,956 | ||
| Shares outstanding, $0.01 par value per share, with an unlimited number of shares authorized: | ||||
| Class A | 26,650,963 | |||
| Class B | 195,260 | |||
| Class C | 3,764,695 | |||
| Class Y | 7,146,838 | |||
| Institutional Class | 5,227,537 | |||
| Class A: | ||||
| Net asset value per share | $ | 8.58 | ||
| Maximum offering price per share | ||||
| (Net asset value of $8.58 divided by 94.50%) | $ | 9.08 | ||
| Class B: | ||||
| Net asset value and offering price per share | $ | 8.56 | ||
| Class C: | ||||
| Net asset value and offering price per share | $ | 8.56 | ||
| Class Y: | ||||
| Net asset value and offering price per share | $ | 8.56 | ||
| Institutional Class: | ||||
| Net asset value and offering price per share | $ | 8.57 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Global Real Estate Income Fund
Statement of Operations
For the six months ended February 29, 2012
(Unaudited)
| Investment income: | ||||
| Dividends (net of foreign withholding taxes of $180,456) | $ | 7,479,787 | ||
| Dividends from affiliated money market funds | 5,411 | |||
| Interest | 2,059,906 | |||
| Total investment income | 9,545,104 | |||
| Expenses: | ||||
| Advisory fees | 1,142,450 | |||
| Administrative services fees | 55,013 | |||
| Custodian fees | 22,655 | |||
| Distribution fees: | ||||
| Class A | 260,424 | |||
| Class B | 8,525 | |||
| Class C | 135,729 | |||
| Transfer agent fees — A, B, C and Y | 272,449 | |||
| Transfer agent fees — Institutional | 8,292 | |||
| Trustees’ and officers’ fees and benefits | 17,365 | |||
| Other | 107,520 | |||
| Total expenses | 2,030,422 | |||
| Less: Fees waived and expense offset arrangement(s) | (5,710 | ) | ||
| Net expenses | 2,024,712 | |||
| Net investment income | 7,520,392 | |||
| Realized and unrealized gain from: | ||||
| Net realized gain from: | ||||
| Investment securities | 2,784,883 | |||
| Foreign currencies | 43,082 | |||
| 2,827,965 | ||||
| Change in net unrealized appreciation (depreciation) of: | ||||
| Investment securities | 5,929,238 | |||
| Foreign currencies | (26,748 | ) | ||
| 5,902,490 | ||||
| Net realized and unrealized gain | 8,730,455 | |||
| Net increase in net assets resulting from operations | $ | 16,250,847 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Global Real Estate Income Fund
Statement of Changes in Net Assets
For the six months ended February 29, 2012 and the year ended August 31, 2011
(Unaudited)
| February 29, | August 31, | |||||||
| 2012 | 2011 | |||||||
| Operations: | ||||||||
| Net investment income | $ | 7,520,392 | $ | 10,145,196 | ||||
| Net realized gain | 2,827,965 | 31,820,565 | ||||||
| Change in net unrealized appreciation (depreciation) | 5,902,490 | (14,156,592 | ) | |||||
| Net increase in net assets resulting from operations | 16,250,847 | 27,809,169 | ||||||
| Distributions to shareholders from net investment income: | ||||||||
| Class A | (4,934,108 | ) | (6,385,644 | ) | ||||
| Class B | (34,764 | ) | (55,232 | ) | ||||
| Class C | (534,089 | ) | (635,236 | ) | ||||
| Class Y | (678,901 | ) | (1,010,913 | ) | ||||
| Institutional Class | (889,611 | ) | (1,576,407 | ) | ||||
| Total distributions from net investment income | (7,071,473 | ) | (9,663,432 | ) | ||||
| Share transactions–net: | ||||||||
| Class A | 19,667,671 | 43,730,695 | ||||||
| Class B | (141,139 | ) | (38,388 | ) | ||||
| Class C | 4,926,008 | 8,493,706 | ||||||
| Class Y | 33,694,760 | 2,300,978 | ||||||
| Institutional Class | 7,901,032 | (5,027,618 | ) | |||||
| Net increase in net assets resulting from share transactions | 66,048,332 | 49,459,373 | ||||||
| Net increase in net assets | 75,227,706 | 67,605,110 | ||||||
| Net assets: | ||||||||
| Beginning of period | 293,298,986 | 225,693,876 | ||||||
| End of period (includes undistributed net investment income of $2,139,344 and $1,690,425, respectively) | $ | 368,526,692 | $ | 293,298,986 | ||||
Notes to Financial Statements
February 29, 2012
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco Global Real Estate Income Fund, formerly Invesco Select Real Estate Income Fund, (the “Fund”) is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (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 twelve separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest.
The Fund’s investment objective is current income and, secondarily, capital appreciation.
The Fund currently consists of five different classes of shares: Class A, Class B, Class C, Class Y and Institutional Class. 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 Y and Institutional Class 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. 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. 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 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. | |
| A security listed or traded on an exchange (except convertible bonds) 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 |
12 Invesco Global Real Estate Income Fund
| 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 ask 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 ask prices. For purposes of determining net asset value 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 bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. | ||
| Foreign securities (including foreign exchange contracts) 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 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 trade is not the current value as of the close of the NYSE. Foreign securities 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 will be used to value debt obligations and Corporate Loans. | ||
| Securities for which market quotations are not readily available or are 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/ask 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. | ||
| 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. | ||
| B. | 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 is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes. | |
| 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 Statement of Changes in Net Assets, or the net investment income per share and 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 recharacterizes distributions received from REIT investments based on information provided by the REIT into the following categories: ordinary income, long-term and short-term capital gains, and return of capital. If information is not available timely from the REIT, the recharacterization will be based on available information which may include the previous year’s allocation. If new or additional information becomes available from the REIT at a later date, a recharacterization will be made in the following year. The Fund records as dividend income the amount recharacterized as ordinary income and as realized gain the amount recharacterized as capital gain in the Statement of Operations, and the amount recharacterized as return of capital in the Statement of Changes in Net Assets. These recharacterizations are reflected in the accompanying financial statements. | ||
| C. | 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 |
13 Invesco Global Real Estate Income Fund
| 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 income are declared and paid quarterly and are recorded on ex-dividend date. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. | |
| E. | Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of 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 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. | ||
| F. | 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 the Institutional Class are charged to such 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. | |
| G. | 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. | |
| H. | 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 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. | |
| I. | Other Risks — The Fund’s investments are concentrated in a comparatively narrow segment of the economy. Consequently, the Fund may tend to be more volatile than other mutual funds, and the value of the Fund’s investments may tend to rise and fall more rapidly. | |
| Because, the Fund concentrates its assets in the real estate industry, an investment in the Fund will be closely linked to the performance of the real estate markets. Property values may fall due to increasing vacancies or declining rents resulting from economic, legal, cultural or technological developments. |
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 pays 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 | .75% | ||
| Next $250 million | 0 | .74% | ||
| Next $500 million | 0 | .73% | ||
| Next $1.5 billion | 0 | .72% | ||
| Next $2.5 billion | 0 | .71% | ||
| Next $2.5 billion | 0 | .70% | ||
| Next $2.5 billion | 0 | .69% | ||
| Over $10 billion | 0 | .68% | ||
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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).
The Adviser has contractually agreed, through at least December 31, 2012, 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 Y and Institutional Class shares to 2.00%, 2.75%, 2.75%, 1.75% and 1.75% of average daily net assets. 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
14 Invesco Global Real Estate Income Fund
expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on December 31, 2012. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.
The Adviser has contractually agreed, through at least June 30, 2012, 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 six months ended February 29, 2012, the Adviser waived advisory fees of $5,431.
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 six months ended February 29, 2012, 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 are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 29, 2012, 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 Y and Institutional Class 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 and Class C 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 and 1.00% of the average daily net assets of Class B and Class C shares. 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 six months ended February 29, 2012, 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 six months ended February 29, 2012, IDI advised the Fund that IDI retained $38,032 in front-end sales commissions from the sale of Class A shares and $22, $824 and $1,566 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.
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 February 29, 2012. 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.
During the six months ended February 29, 2012, there were no significant transfers between investment levels.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Australia | $ | 3,065,894 | $ | 24,760,544 | $ | — | $ | 27,826,438 | ||||||||
| Belgium | 1,688,737 | — | — | 1,688,737 | ||||||||||||
| Brazil | — | 1,858,116 | — | 1,858,116 | ||||||||||||
| Canada | 18,713,839 | 766,097 | — | 19,479,936 | ||||||||||||
| China | 866,074 | 5,033,476 | — | 5,899,550 | ||||||||||||
| Finland | 126,283 | — | — | 126,283 | ||||||||||||
| France | 2,705,204 | — | — | 2,705,204 | ||||||||||||
| Germany | 1,578,333 | — | — | 1,578,333 | ||||||||||||
| Hong Kong | 2,103,783 | 6,731,557 | — | 8,835,340 | ||||||||||||
15 Invesco Global Real Estate Income Fund
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Ireland | — | 1,934,941 | — | 1,934,941 | ||||||||||||
| Japan | 12,617,428 | 5,618,011 | — | 18,235,439 | ||||||||||||
| Netherlands | 461,430 | 2,188,575 | — | 2,650,005 | ||||||||||||
| New Zealand | 3,838,553 | 2,925,768 | — | 6,764,321 | ||||||||||||
| Singapore | 1,924,678 | 5,435,809 | — | 7,360,487 | ||||||||||||
| South Africa | 4,149,694 | 2,596,006 | — | 6,745,700 | ||||||||||||
| Sweden | 1,447,658 | — | — | 1,447,658 | ||||||||||||
| United Kingdom | 16,473,956 | 2,528,768 | — | 19,002,724 | ||||||||||||
| United States | 163,915,071 | 69,997,751 | — | 233,912,822 | ||||||||||||
| Total Investments | $ | 235,676,615 | $ | 132,375,419 | $ | — | $ | 368,052,034 | ||||||||
NOTE 4—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended February 29, 2012, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $279.
NOTE 5—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 are eligible to participate in a retirement plan that provides 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.
During the six months ended February 29, 2012, the Fund paid legal fees of $0 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.
NOTE 6—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 7—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
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. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund utilized $30,344,253 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of August 31, 2011 which expires as follows:
| Capital Loss | ||||
| Expiration | Carryforward* | |||
| August 31, 2018 | $ | 4,322,301 | ||
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. |
16 Invesco Global Real Estate Income Fund
NOTE 8—Investment Securities
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 six months ended February 29, 2012 was $146,116,738 and $78,578,422, respectively. Cost of investments 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 Investment Securities on a Tax Basis | ||||
| Aggregate unrealized appreciation of investment securities | $ | 21,194,898 | ||
| Aggregate unrealized (depreciation) of investment securities | (8,330,032 | ) | ||
| Net unrealized appreciation of investment securities | $ | 12,864,866 | ||
| Cost of investments for tax purposes is $355,187,168. | ||||
NOTE 9—Share Information
| Summary of Share Activity | ||||||||||||||||
| Six months ended | Year ended | |||||||||||||||
| February 29, 2012(a) | August 31, 2011 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Sold: | ||||||||||||||||
| Class A | 6,836,700 | $ | 56,079,136 | 10,732,994 | $ | 89,560,522 | ||||||||||
| Class B | 24,753 | 202,557 | 66,731 | 550,871 | ||||||||||||
| Class C | 812,650 | 6,697,644 | 1,559,082 | 12,992,304 | ||||||||||||
| Class Y | 4,473,330 | 37,390,764 | 1,599,691 | 13,212,606 | ||||||||||||
| Institutional Class | 1,626,531 | 13,354,238 | 1,162,860 | 9,576,471 | ||||||||||||
| Issued as reinvestment of dividends: | ||||||||||||||||
| Class A | 446,620 | 3,596,538 | 611,409 | 5,004,588 | ||||||||||||
| Class B | 3,726 | 29,985 | 6,066 | 49,475 | ||||||||||||
| Class C | 55,012 | 442,612 | 65,429 | 535,195 | ||||||||||||
| Class Y | 64,720 | 519,342 | 99,207 | 808,386 | ||||||||||||
| Institutional Class | 105,948 | 852,778 | 180,704 | 1,471,367 | ||||||||||||
| Automatic conversion of Class B shares to Class A shares: | ||||||||||||||||
| Class A | 15,565 | 129,112 | 33,301 | 280,701 | ||||||||||||
| Class B | (15,591 | ) | (129,112 | ) | (33,373 | ) | (280,701 | ) | ||||||||
Reacquired:(b) | ||||||||||||||||
| Class A | (4,869,281 | ) | (40,137,115 | ) | (6,149,335 | ) | (51,115,116 | ) | ||||||||
| Class B | (29,522 | ) | (244,569 | ) | (43,772 | ) | (358,033 | ) | ||||||||
| Class C | (272,695 | ) | (2,214,248 | ) | (608,844 | ) | (5,033,793 | ) | ||||||||
| Class Y | (516,724 | ) | (4,215,346 | ) | (1,418,430 | ) | (11,720,014 | ) | ||||||||
| Institutional Class | (776,221 | ) | (6,305,984 | ) | (1,930,006 | ) | (16,075,456 | ) | ||||||||
| Net increase in share activity | 7,985,521 | $ | 66,048,332 | 5,933,714 | $ | 49,459,373 | ||||||||||
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 52% 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. | |
| (b) | Net of redemption fees of $2,724 allocated among the classes based on relative net assets of each class for the six months ended February 29, 2012. |
17 Invesco Global Real Estate Income Fund
NOTE 10—Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated. Information presented prior to March 12, 2007 includes financial data for the common shares of the Closed-End Fund.
| Class A* | ||||||||||||||||||||||||||||
| Six months | Eight months | |||||||||||||||||||||||||||
| ended | ended | Year ended | ||||||||||||||||||||||||||
| February 29, | Year ended August 31 | August 31, | December 31, | |||||||||||||||||||||||||
| 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||||
| Net asset value, beginning of period | $ | 8.39 | $ | 7.77 | $ | 6.62 | $ | 8.38 | $ | 16.27 | $ | 17.35 | $ | 17.49 | ||||||||||||||
| Net investment income | 0.20 | (a) | 0.32 | (a) | 0.28 | (a) | 0.27 | (a) | 0.42 | (a) | 0.44 | (a) | 0.86 | |||||||||||||||
| Net gains (losses) on securities (both realized and unrealized) | 0.19 | 0.61 | 1.14 | (1.75 | ) | (1.54 | ) | (1.54 | ) | 3.88 | ||||||||||||||||||
Less distributions paid to preferred shareholders of Closed-End Fund from net investment income(b) | N/A | N/A | N/A | N/A | N/A | N/A | (0.20 | ) | ||||||||||||||||||||
| Total from investment operations | 0.39 | 0.93 | 1.42 | (1.48 | ) | (1.12 | ) | (1.10 | ) | 4.54 | ||||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||||||||
| Dividends from net investment income | (0.20 | ) | (0.31 | ) | (0.27 | ) | (0.28 | ) | (0.65 | ) | (0.38 | ) | (0.89 | ) | ||||||||||||||
| Distributions from net realized gains | — | — | — | — | (6.18 | ) | (0.09 | ) | (3.84 | ) | ||||||||||||||||||
| Total distributions | (0.20 | ) | (0.31 | ) | (0.27 | ) | (0.28 | ) | (6.83 | ) | (0.47 | ) | (4.73 | ) | ||||||||||||||
| Increase from common shares of Closed-End Fund repurchased | N/A | N/A | N/A | N/A | N/A | — | 0.05 | |||||||||||||||||||||
| Redemption fees added to shares of beneficial interest | — | — | — | — | 0.06 | 0.49 | N/A | |||||||||||||||||||||
| Net asset value, end of period | $ | 8.58 | (c) | $ | 8.39 | $ | 7.77 | $ | 6.62 | $ | 8.38 | $ | 16.27 | $ | 17.35 | |||||||||||||
| Market value, end of period | N/A | N/A | N/A | N/A | N/A | N/A | $ | 16.67 | ||||||||||||||||||||
| Total return at net asset value | 4.77 | %(d) | 12.11 | %(d) | 21.85 | %(d) | (17.12 | )%(d) | (7.47 | )%(d)(e) | (3.59 | )%(d)(e) | 29.15 | %(f) | ||||||||||||||
| Total return at market value | N/A | N/A | N/A | N/A | N/A | N/A | 44.88 | %(f) | ||||||||||||||||||||
| Ratios/supplemental data: | ||||||||||||||||||||||||||||
| Net assets, end of period (000s omitted) | $ | 228,668 | $ | 203,100 | $ | 147,568 | $ | 94,979 | $ | 111,529 | $ | 224,000 | $ | 678,394 | ||||||||||||||
| Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
With fee waivers and/or expense reimbursements | 1.33 | %(g) | 1.30 | % | 1.37 | % | 1.73 | % | 1.32 | % | 1.08 | %(h) | 0.96 | %(i) | ||||||||||||||
Without fee waivers and/or expense reimbursements | 1.33 | %(g) | 1.30 | % | 1.38 | % | 1.74 | % | 1.33 | % | 1.23 | %(h) | 1.33 | %(i) | ||||||||||||||
| Ratio of net investment income to average net assets | 4.92 | %(g) | 3.83 | % | 3.93 | % | 4.83 | % | 3.91 | % | 3.82 | %(h) | 4.59 | %(i) | ||||||||||||||
| Ratio of distributions to preferred shareholders of Closed-End Fund to average net applicable to common shares of Closed-End Fund | N/A | N/A | N/A | N/A | N/A | N/A | 1.30 | %(i) | ||||||||||||||||||||
| Portfolio turnover rate(j) | 26 | % | 101 | % | 77 | % | 59 | % | 73 | % | 24 | % | 23 | % | ||||||||||||||
| * | Prior to March 12, 2007, the Fund operated as a Closed-End Fund. On such date, holders of common shares of Closed-End Fund received Class A shares of the Fund equal to the number of Closed-End Fund common shares they owed prior to the Reorganization. | |
| (a) | Calculated using average shares outstanding. | |
| (b) | Based on average number of common shares outstanding of Closed-End Fund. | |
| (c) | Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share. | |
| (d) | 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. Not annualized for periods less than one year, if applicable. | |
| (e) | Includes the impact of the temporary 2% redemption fee which was effective March 12, 2007 through March 11, 2008. | |
| (f) | Total return assumes an investment at the common share market price at the beginning of the period indicated, reinvestment of all distributions for the period in accordance with the Trust’s dividend reinvestment plan, and sale of all shares at the closing common share market price at the end of the period indicated. Not annualized for periods less than one year, if applicable. | |
| (g) | Ratios are annualized and based on average daily net assets (000’s omitted) of $209,484. | |
| (h) | Annualized. | |
| (i) | Ratios do not reflect the effect of dividend payments to preferred shareholders; income ratios reflect income earned on investments made with assets attributable to preferred shares of Closed-End Fund. | |
| (j) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
18 Invesco Global Real Estate Income Fund
NOTE 10—Financial Highlights (continued)
| Ratio of | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| expenses | expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net gains | to average | to average net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (losses) on | net assets | assets without | Ratio of net | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net asset | securities | Dividends | Distributions | with fee | fee waivers | investment | ||||||||||||||||||||||||||||||||||||||||||||||||||
| value, | Net | (both | Total from | from net | from net | Net asset | Net assets, | waivers and/or | and/or | income to | ||||||||||||||||||||||||||||||||||||||||||||||
| beginning | investment | realized and | investment | investment | realized | Total | value, end | Total | end of period | expenses | expenses | average | Portfolio | |||||||||||||||||||||||||||||||||||||||||||
| of period | income(a) | unrealized) | operations | income | gains | distributions | of period | return(b) | (000s omitted) | absorbed | absorbed | net assets | turnover(c) | |||||||||||||||||||||||||||||||||||||||||||
| Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | $ | 8.36 | $ | 0.17 | $ | 0.19 | $ | 0.36 | $ | (0.16 | ) | $ | — | $ | (0.16 | ) | $ | 8.56 | (d) | 4.49 | % | $ | 1,671 | 2.08 | %(e) | 2.08 | %(e) | 4.17 | %(e) | 26 | % | |||||||||||||||||||||||||
| Year ended 08/31/11 | 7.75 | 0.26 | 0.59 | 0.85 | (0.24 | ) | — | (0.24 | ) | 8.36 | 11.15 | 1,772 | 2.05 | 2.05 | 3.08 | 101 | ||||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 6.60 | 0.23 | 1.14 | 1.37 | (0.22 | ) | — | (0.22 | ) | 7.75 | 21.02 | 1,676 | 2.12 | 2.13 | 3.18 | 77 | ||||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 8.37 | 0.23 | (1.77 | ) | (1.54 | ) | (0.23 | ) | — | (0.23 | ) | 6.60 | (17.91 | ) | 680 | 2.48 | 2.49 | 4.08 | 59 | |||||||||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 16.23 | 0.28 | (1.40 | )(f) | (1.12 | ) | (0.56 | ) | (6.18 | ) | (6.74 | ) | 8.37 | (8.01 | ) | 1,126 | 2.07 | 2.08 | 3.16 | 73 | ||||||||||||||||||||||||||||||||||||
| Eight months ended 08/31/07(g) | 17.34 | 0.22 | (1.09 | )(f) | (0.87 | ) | (0.24 | ) | — | (0.24 | ) | 16.23 | (5.10 | ) | 162 | 2.04 | (h) | 2.04 | (h) | 2.86 | (h) | 24 | ||||||||||||||||||||||||||||||||||
| Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 8.36 | 0.17 | 0.19 | 0.36 | (0.16 | ) | — | (0.16 | ) | 8.56 | (d) | 4.49 | 32,222 | 2.08 | (e) | 2.08 | (e) | 4.17 | (e) | 26 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 7.75 | 0.26 | 0.59 | 0.85 | (0.24 | ) | — | (0.24 | ) | 8.36 | 11.15 | 26,511 | 2.05 | 2.05 | 3.08 | 101 | ||||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 6.60 | 0.23 | 1.14 | 1.37 | (0.22 | ) | — | (0.22 | ) | 7.75 | 21.02 | 16,692 | 2.12 | 2.13 | 3.18 | 77 | ||||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 8.38 | 0.23 | (1.78 | ) | (1.55 | ) | (0.23 | ) | — | (0.23 | ) | 6.60 | (18.00 | ) | 4,296 | 2.48 | 2.49 | 4.08 | 59 | |||||||||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 16.23 | 0.29 | (1.40 | )(f) | (1.11 | ) | (0.56 | ) | (6.18 | ) | (6.74 | ) | 8.38 | (7.90 | ) | 1,932 | 2.07 | 2.08 | 3.16 | 73 | ||||||||||||||||||||||||||||||||||||
| Eight months ended 08/31/07(g) | 17.34 | 0.22 | (1.09 | )(f) | (0.87 | ) | (0.24 | ) | — | (0.24 | ) | 16.23 | (5.10 | ) | 356 | 2.04 | (h) | 2.04 | (h) | 2.86 | (h) | 24 | ||||||||||||||||||||||||||||||||||
| Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 8.36 | 0.21 | 0.20 | 0.41 | (0.21 | ) | — | (0.21 | ) | 8.56 | (d) | 5.03 | 61,162 | 1.08 | (e) | 1.08 | (e) | 5.17 | (e) | 26 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 7.75 | 0.34 | 0.60 | 0.94 | (0.33 | ) | — | (0.33 | ) | 8.36 | 12.28 | 26,139 | 1.05 | 1.05 | 4.08 | 101 | ||||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 6.60 | 0.31 | 1.13 | 1.44 | (0.29 | ) | — | (0.29 | ) | 7.75 | 22.21 | 22,047 | 1.12 | 1.13 | 4.18 | 77 | ||||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09(g) | 7.15 | 0.26 | (0.63 | ) | (0.37 | ) | (0.18 | ) | — | (0.18 | ) | 6.60 | (4.23 | ) | 2,755 | 1.53 | (h) | 1.53 | (h) | 5.03 | (h) | 59 | ||||||||||||||||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 8.38 | 0.21 | 0.19 | 0.40 | (0.21 | ) | — | (0.21 | ) | 8.57 | (d) | 4.99 | 44,803 | 0.93 | (e) | 0.93 | (e) | 5.32 | (e) | 26 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 7.76 | 0.35 | 0.61 | 0.96 | (0.34 | ) | — | (0.34 | ) | 8.38 | 12.52 | 35,777 | 0.96 | 0.96 | 4.17 | 101 | ||||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 6.62 | 0.32 | 1.13 | 1.45 | (0.31 | ) | — | (0.31 | ) | 7.76 | 22.27 | 37,711 | 0.92 | 0.93 | 4.38 | 77 | ||||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 8.39 | 0.31 | (1.77 | ) | (1.46 | ) | (0.31 | ) | — | (0.31 | ) | 6.62 | (16.75 | ) | 33,753 | 1.11 | 1.12 | 5.45 | 59 | |||||||||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 16.27 | 0.37 | (1.37 | )(f) | (1.00 | ) | (0.70 | ) | (6.18 | ) | (6.88 | ) | 8.39 | (6.91 | ) | 12,696 | 0.88 | 0.89 | 4.35 | 73 | ||||||||||||||||||||||||||||||||||||
| Eight months ended 08/31/07(g) | 17.34 | 0.32 | (1.09 | )(f) | (0.77 | ) | (0.30 | ) | — | (0.30 | ) | 16.27 | (4.53 | ) | 10 | 0.89 | (h) | 0.89 | (h) | 4.01 | (h) | 24 | ||||||||||||||||||||||||||||||||||
| (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) | Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share. | |
| (e) | Ratios are annualized and based on average daily net assets (000’s omitted) of $1,714, $27,295, $32,404 and $36,190 for Class B, Class C, Class Y and Institutional Class shares, respectively. | |
| (f) | Includes the impact of the temporary 2% redemption fee which was effective March 12, 2007 through March 11, 2008. Redemption fees added to shares of beneficial interest for Class B, Class C and Institutional Class shares were $0.05, $0.05 and $0.04 per share and $0.47, $0.47 and $0.48 per share for the years ended August 31, 2008 and the eight months ended August 31, 2007, respectively. | |
| (g) | Commencement date of March 9, 2007 for Class B, Class C and Institutional Class shares and October 3, 2008 for Class Y shares. | |
| (h) | Annualized. |
19 Invesco Global Real Estate Income 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, and redemption fees, 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 September 1, 2011 through February 29, 2012.
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, contingent deferred sales charges on redemptions, and redemption fees, 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.
| HYPOTHETICAL | ||||||||||||||||||||||||||||||
| (5% annual return before | ||||||||||||||||||||||||||||||
| ACTUAL | expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Ending | Expenses | Annualized | |||||||||||||||||||||||||
| Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||||||||||||||||||||
| Class | (09/01/11) | (02/29/12)1 | Period2 | (02/29/12) | Period2 | Ratio | ||||||||||||||||||||||||
| A | $ | 1,000.00 | $ | 1,048.90 | $ | 6.78 | $ | 1,018.25 | $ | 6.67 | 1.33 | % | ||||||||||||||||||
| B | 1,000.00 | 1,044.90 | 10.58 | 1,014.52 | 10.42 | 2.08 | ||||||||||||||||||||||||
| C | 1,000.00 | 1,044.90 | 10.58 | 1,014.52 | 10.42 | 2.08 | ||||||||||||||||||||||||
| Y | 1,000.00 | 1,050.30 | 5.51 | 1,019.49 | 5.42 | 1.08 | ||||||||||||||||||||||||
| Institutional | 1,000.00 | 1,049.90 | 4.74 | 1,020.24 | 4.67 | 0.93 | ||||||||||||||||||||||||
| 1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2011 through February 29, 2012, 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 182/366 to reflect the most recent fiscal half year. |
20 Invesco Global Real Estate Income Fund
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Invesco privacy policy
You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.
Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.
Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.
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 811-09913 and 333-36074.
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 12 months ended June 30, 2011, 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 U.S. 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.
| GREI-SAR-1 | Invesco Distributors, Inc. |
Invesco U.S. Quantitative Core Fund
Semiannual Report to Shareholders § February 29, 2012
Effective March 1, 2012, Invesco Structured Core Fund was renamed Invesco
U.S. Quantitative Core Fund.
Semiannual Report to Shareholders § February 29, 2012
Effective March 1, 2012, Invesco Structured Core Fund was renamed Invesco
U.S. Quantitative Core Fund.
Nasdaq:
A: SCAUX § B: SBCUX § C: SCCUX § R: SCRUX § Y: SCAYX
Investor: SCNUX § Institutional: SCIUX
Investor: SCNUX § Institutional: SCIUX
| 2 | Fund Performance | |
| 4 | Letters to Shareholders | |
| 5 | Schedule of Investments | |
| 8 | Financial Statements | |
| 10 | Notes to Financial Statements | |
| 17 | Financial Highlights | |
| 18 | Fund Expenses | |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
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
Fund Performance
Performance summary
Fund vs. Indexes
Cumulative total returns, 8/31/11 to 2/29/12, 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 | 12.66 | % | ||
| Class B Shares | 12.37 | |||
| Class C Shares | 12.24 | |||
| Class R Shares | 12.47 | |||
| Class Y Shares | 12.88 | |||
| Investor Class Shares | 12.76 | |||
| Institutional Class Shares | 12.89 | |||
S&P 500 Index▼ (Broad Market/Style-Specific Index) | 13.30 | |||
Lipper Large-Cap Core Funds Index▼ (Peer Group Index) | 11.83 | |||
Source(s): ▼Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the US stock market.
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 indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
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.
2 Invesco U.S. Quantitative Core Fund
Average Annual Total Returns
As of 2/29/12, including maximum applicable sales charges
| Class A Shares | ||||||||
| Inception (3/31/06) | 0.38 | % | ||||||
| 5 | Years | -1.49 | ||||||
| 1 | Year | -1.21 | ||||||
| Class B Shares | ||||||||
| Inception (3/31/06) | 0.50 | % | ||||||
| 5 | Years | -1.37 | ||||||
| 1 | Year | -0.95 | ||||||
| Class C Shares | ||||||||
| Inception (3/31/06) | 0.60 | % | ||||||
| 5 | Years | -1.10 | ||||||
| 1 | Year | 2.93 | ||||||
| Class R Shares | ||||||||
| Inception (3/31/06) | 1.11 | % | ||||||
| 5 | Years | -0.60 | ||||||
| 1 | Year | 4.34 | ||||||
| Class Y Shares | ||||||||
| Inception | 1.54 | % | ||||||
| 5 | Years | -0.15 | ||||||
| 1 | Year | 5.04 | ||||||
| Investor Class Shares | ||||||||
| Inception | 1.38 | % | ||||||
| 5 | Years | -0.33 | ||||||
| 1 | Year | 4.66 | ||||||
| Institutional Class Shares | ||||||||
| Inception (3/31/06) | 1.63 | % | ||||||
| 5 | Years | -0.09 | ||||||
| 1 | Year | 4.92 | ||||||
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 A share performance reflects any applicable fee waivers or expense reimbursements.
Investor Class shares incepted on April 25, 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 A share performance reflects any applicable fee waivers or expense reimbursements.
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
Average Annual Total Returns
As of 12/31/11, the most recent calendar quarter-end, including maximum applicable sales charges
As of 12/31/11, the most recent calendar quarter-end, including maximum applicable sales charges
| Class A Shares | ||||||||
| Inception (3/31/06) | -1.26 | % | ||||||
| 5 | Years | -3.49 | ||||||
| 1 | Year | -4.75 | ||||||
| Class B Shares | ||||||||
| Inception (3/31/06) | -1.13 | % | ||||||
| 5 | Years | -3.37 | ||||||
| 1 | Year | -4.91 | ||||||
| Class C Shares | ||||||||
| Inception (3/31/06) | -1.02 | % | ||||||
| 5 | Years | -3.09 | ||||||
| 1 | Year | -0.92 | ||||||
| Class R Shares | ||||||||
| Inception (3/31/06) | -0.51 | % | ||||||
| 5 | Years | -2.59 | ||||||
| 1 | Year | 0.52 | ||||||
| Class Y Shares | ||||||||
| Inception | -0.11 | % | ||||||
| 5 | Years | -2.18 | ||||||
| 1 | Year | 1.14 | ||||||
| Investor Class Shares | ||||||||
| Inception | -0.27 | % | ||||||
| 5 | Years | -2.37 | ||||||
| 1 | Year | 0.74 | ||||||
| Institutional Class Shares | ||||||||
| Inception (3/31/06) | -0.01 | % | ||||||
| 5 | Years | -2.10 | ||||||
| 1 | Year | 1.01 | ||||||
value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. 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 R, Class Y, Investor Class and Institutional Class shares was 1.22%, 1.97%, 1.97%, 1.47%, 0.97%, 1.22% and 0.77%, 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 Y, Investor Class and Institutional Class 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.
Had the adviser not waived fees and/ or reimbursed expenses, performance would have been lower for Class A, Class B, Class C, Class R, Class Y and Investor Class shares. Had the adviser not waived fees and/or reimbursed expenses in the past, performance would have been lower for Institutional Class shares.
3 Invesco U.S. Quantitative Core Fund
Letters to Shareholders
Bruce Crockett
Dear Fellow Shareholders:
Throughout 2011, we experienced volatile, challenging markets that presented both opportunities and risks for investors. Based on everything I’ve read, this year could potentially be just as interesting, with continued economic uncertainty and market volatility.
With this in mind, you’ll want to stay informed regarding the markets and keep up to date with news that affects your investment portfolio. Invesco’s website, invesco.com/us, provides a wealth of information about your investments and news regarding global markets.
Regardless of economic conditions and market trends, the Invesco Funds Board of Trustees remains committed to putting your interests first. Throughout 2011, we worked to manage costs, and this remains a continuing focus of your Board. We will continue to oversee the funds with the strong sense of responsibility for your money and your continued trust that we’ve always maintained.
I would like to close by thanking Bob Baker for his distinguished 30-year service with the Invesco Funds Board and his unflagging commitment to our funds’ shareholders. As always, I encourage you to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving you in 2012.
Sincerely,
Bruce L. Crockett
Independent Chair
Independent Chair
Invesco Funds Board of Trustees
Philip Taylor
Dear Shareholders:
This report provides important information about your Fund, including its short- and long-term performance. Also, this report includes a listing of investments held by your Fund at the close of the reporting period.
Investors are likely to confront both opportunities and challenges in 2012. As we saw in 2011, market sentiment can change suddenly and dramatically — and certainly without advance notice — depending on economic developments and world events. Similarly, your own situation, needs and goals can change, requiring adjustments in your financial strategy.
In addition to meeting with your financial adviser regularly to discuss your individual situation, you also may find it helpful to stay abreast of market trends and developments. Doing so may provide reassurance in times of economic uncertainty and market volatility such as we saw last year and may see again this year.
Invesco can help you stay informed about your investments and market trends. On our website, invesco.com/us, we provide timely market updates and commentary from many of our portfolio managers and other investment professionals. Also on our website, you can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer at invesco.com/us.
If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.
All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.
Sincerely,
Philip Taylor
Senior Managing Director, Invesco Ltd.
Senior Managing Director, Invesco Ltd.
4 Invesco U.S. Quantitative Core Fund
Schedule of Investments(a)
February 29, 2012
(Unaudited)
| Shares | Value | |||||||
| Common Stocks & Other Equity Interests–98.37% | ||||||||
| Aerospace & Defense–0.66% | ||||||||
| Textron Inc. | 83,500 | $ | 2,297,085 | |||||
| Airlines–0.79% | ||||||||
United Continental Holdings Inc.(b) | 134,300 | 2,773,295 | ||||||
| Biotechnology–2.32% | ||||||||
| Amgen Inc. | 119,500 | 8,120,025 | ||||||
| Cable & Satellite–0.19% | ||||||||
| DISH Network Corp.–Class A | 22,600 | 659,242 | ||||||
| Casinos & Gaming–1.22% | ||||||||
| Wynn Resorts Ltd. | 36,200 | 4,291,148 | ||||||
| Communications Equipment–0.18% | ||||||||
| Motorola Solutions, Inc. | 13,000 | 647,400 | ||||||
| Computer & Electronics Retail–0.22% | ||||||||
| GameStop Corp.–Class A | 33,300 | 758,574 | ||||||
| Computer Hardware–7.51% | ||||||||
Apple Inc.(b) | 34,920 | 18,942,005 | ||||||
Dell Inc.(b) | 425,100 | 7,354,230 | ||||||
| 26,296,235 | ||||||||
| Computer Storage & Peripherals–2.60% | ||||||||
| Lexmark International, Inc.–Class A | 90,700 | 3,345,016 | ||||||
SanDisk Corp.(b) | 62,200 | 3,076,412 | ||||||
| Seagate Technology PLC (Ireland) | 102,800 | 2,699,528 | ||||||
| 9,120,956 | ||||||||
| Construction & Engineering–0.70% | ||||||||
| KBR, Inc. | 67,200 | 2,440,704 | ||||||
| Construction & Farm Machinery & Heavy Trucks–0.43% | ||||||||
| Caterpillar Inc. | 13,200 | 1,507,572 | ||||||
| Consumer Finance–4.08% | ||||||||
| American Express Co. | 127,500 | 6,743,475 | ||||||
| Discover Financial Services | 250,900 | 7,529,509 | ||||||
| 14,272,984 | ||||||||
| Data Processing & Outsourced Services–2.51% | ||||||||
| MasterCard, Inc.–Class A | 3,680 | 1,545,600 | ||||||
| Visa Inc.–Class A | 62,300 | 7,249,851 | ||||||
| 8,795,451 | ||||||||
| Department Stores–2.14% | ||||||||
| Macy’s, Inc. | 197,800 | 7,510,466 | ||||||
| Diversified Metals & Mining–0.38% | ||||||||
| Freeport-McMoRan Copper & Gold Inc. | 31,500 | 1,340,640 | ||||||
| Education Services–1.38% | ||||||||
Apollo Group, Inc.–Class A(b) | 113,300 | 4,831,112 | ||||||
| Electronic Manufacturing Services–0.16% | ||||||||
| Jabil Circuit, Inc. | 21,200 | 547,596 | ||||||
| Fertilizers & Agricultural Chemicals–2.52% | ||||||||
| CF Industries Holdings, Inc. | 33,550 | 6,240,300 | ||||||
| Monsanto Co. | 33,500 | 2,592,230 | ||||||
| 8,832,530 | ||||||||
| Gold–0.69% | ||||||||
| IAMGOLD Corp. (Canada) | 40,300 | 609,336 | ||||||
| Yamana Gold Inc. (Canada) | 104,100 | 1,807,176 | ||||||
| 2,416,512 | ||||||||
| Health Care Distributors–1.55% | ||||||||
| Cardinal Health, Inc. | 80,400 | 3,340,620 | ||||||
| McKesson Corp. | 25,100 | 2,096,101 | ||||||
| 5,436,721 | ||||||||
| Home Entertainment Software–0.84% | ||||||||
| Activision Blizzard, Inc. | 246,600 | 2,946,870 | ||||||
| Hotels, Resorts & Cruise Lines–0.23% | ||||||||
| Wyndham Worldwide Corp. | 18,200 | 800,618 | ||||||
| Household Products–0.08% | ||||||||
| Procter & Gamble Co. (The) | 4,000 | 270,080 | ||||||
| Hypermarkets & Super Centers–2.30% | ||||||||
| Wal-Mart Stores, Inc. | 136,200 | 8,046,696 | ||||||
| Industrial Conglomerates–4.77% | ||||||||
| 3M Co. | 53,200 | 4,660,320 | ||||||
| General Electric Co. | 632,900 | 12,056,745 | ||||||
| 16,717,065 | ||||||||
| Industrial Machinery–0.18% | ||||||||
| ITT Corp. | 24,900 | 621,255 | ||||||
| Integrated Oil & Gas–8.31% | ||||||||
| Chevron Corp. | 57,600 | 6,285,312 | ||||||
| ConocoPhillips | 109,500 | 8,382,225 | ||||||
| Exxon Mobil Corp. | 167,000 | 14,445,500 | ||||||
| 29,113,037 | ||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 Invesco U.S. Quantitative Core Fund
| Shares | Value | |||||||
| Integrated Telecommunication Services–5.90% | ||||||||
| AT&T Inc. | 377,900 | $ | 11,559,961 | |||||
| Verizon Communications Inc. | 238,500 | 9,089,235 | ||||||
| 20,649,196 | ||||||||
| Internet Retail–0.06% | ||||||||
| Expedia, Inc. | 5,800 | 197,490 | ||||||
| Internet Software & Services–0.76% | ||||||||
| IAC/InterActiveCorp | 58,200 | 2,653,920 | ||||||
| IT Consulting & Other Services–0.93% | ||||||||
| International Business Machines Corp. | 16,550 | 3,255,881 | ||||||
| Managed Health Care–8.43% | ||||||||
| Aetna Inc. | 125,000 | 5,845,000 | ||||||
| Cigna Corp. | 51,600 | 2,276,076 | ||||||
Coventry Health Care, Inc.(b) | 21,800 | 712,642 | ||||||
| Humana Inc. | 73,300 | 6,384,430 | ||||||
| UnitedHealth Group Inc. | 151,100 | 8,423,825 | ||||||
| WellPoint, Inc. | 89,700 | 5,887,011 | ||||||
| 29,528,984 | ||||||||
| Movies & Entertainment–1.57% | ||||||||
| News Corp.–Class A | 277,500 | 5,513,925 | ||||||
| Oil & Gas Equipment & Services–2.14% | ||||||||
| National Oilwell Varco Inc. | 90,900 | 7,501,977 | ||||||
| Oil & Gas Exploration & Production–0.19% | ||||||||
WPX Energy Inc.(b) | 36,300 | 659,208 | ||||||
| Oil & Gas Refining & Marketing–3.06% | ||||||||
Tesoro Corp.(b) | 245,200 | 6,505,156 | ||||||
| Valero Energy Corp. | 171,800 | 4,207,382 | ||||||
| 10,712,538 | ||||||||
| Other Diversified Financial Services–4.95% | ||||||||
| Citigroup Inc. | 258,900 | 8,626,548 | ||||||
| JPMorgan Chase & Co. | 222,100 | 8,715,204 | ||||||
| 17,341,752 | ||||||||
| Paper Products–0.18% | ||||||||
| International Paper Co. | 18,300 | 643,245 | ||||||
| Pharmaceuticals–6.49% | ||||||||
| Eli Lilly & Co. | 177,300 | 6,957,252 | ||||||
Forest Laboratories, Inc.(b) | 155,600 | 5,060,112 | ||||||
| Pfizer Inc. | 507,200 | 10,701,920 | ||||||
| 22,719,284 | ||||||||
| Property & Casualty Insurance–1.09% | ||||||||
Berkshire Hathaway Inc.–Class B(b) | 48,800 | 3,828,360 | ||||||
| Publishing–1.23% | ||||||||
| McGraw-Hill Cos., Inc. (The) | 92,300 | 4,295,642 | ||||||
| Regional Banks–0.05% | ||||||||
| KeyCorp | 20,500 | 166,050 | ||||||
| Retail REIT’s–0.32% | ||||||||
| Simon Property Group, Inc. | 8,200 | 1,110,936 | ||||||
| Semiconductor Equipment–0.13% | ||||||||
| KLA-Tencor Corp. | 9,100 | 440,440 | ||||||
| Specialized Consumer Services–0.41% | ||||||||
| H&R Block, Inc. | 87,600 | 1,427,880 | ||||||
| Specialized Finance–1.82% | ||||||||
| Moody’s Corp. | 165,200 | 6,378,372 | ||||||
| Specialized REIT’s–1.52% | ||||||||
| Public Storage | 39,800 | 5,335,986 | ||||||
| Specialty Stores–0.12% | ||||||||
| PetSmart, Inc. | 7,500 | 418,050 | ||||||
| Systems Software–4.69% | ||||||||
| Microsoft Corp. | 341,700 | 10,845,558 | ||||||
Symantec Corp.(b) | 313,400 | 5,591,056 | ||||||
| 16,436,614 | ||||||||
| Tobacco–3.08% | ||||||||
| Philip Morris International Inc. | 129,300 | 10,799,136 | ||||||
| Wireless Telecommunication Services–0.31% | ||||||||
Sprint Nextel Corp.(b) | 435,800 | 1,076,426 | ||||||
| Total Common Stocks & Other Equity Interests (Cost $291,008,192) | 344,503,161 | |||||||
| Principal | ||||||||
| Amount | ||||||||
| U.S. Treasury Bills–0.32% | ||||||||
0.025%, 03/15/12(c)(d) | $ | 1,000,000 | 999,985 | |||||
0.035%, 03/15/12(c)(d) | 110,000 | 109,998 | ||||||
| Total U.S. Treasury Bills (Cost $1,109,989) | 1,109,983 | |||||||
| Shares | ||||||||
| Money Market Funds–1.52% | ||||||||
Liquid Assets Portfolio–Institutional Class(e) | 2,664,373 | 2,664,373 | ||||||
Premier Portfolio–Institutional Class(e) | 2,664,373 | 2,664,373 | ||||||
| Total Money Market Funds (Cost $5,328,746) | 5,328,746 | |||||||
| TOTAL INVESTMENTS–100.21% (Cost $297,446,927) | 350,941,890 | |||||||
| OTHER ASSETS LESS LIABILITIES–(0.21)% | (720,021 | ) | ||||||
| NET ASSETS–100.00% | $ | 350,221,869 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco U.S. Quantitative Core Fund
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) | Non-income producing security. | |
| (c) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1I and Note 4. | |
| (d) | Securities are traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. | |
| (e) | The money market fund and the Fund are affiliated by having the same investment adviser. |
By sector, based on Net Assets
as of February 29, 2012
| Information Technology | 20.3 | % | ||
| Health Care | 18.8 | |||
| Financials | 13.8 | |||
| Energy | 13.7 | |||
| Consumer Discretionary | 8.8 | |||
| Industrials | 7.5 | |||
| Telecommunication Services | 6.2 | |||
| Consumer Staples | 5.5 | |||
| Materials | 3.8 | |||
| U.S. Treasury Bills, Money Market Funds Plus Other Assets Less Liabilities | 1.6 | |||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco U.S. Quantitative Core Fund
Statement of Assets and Liabilities
February 29, 2012
(Unaudited)
| Assets: | ||||
| Investments, at value (Cost $292,118,181) | $ | 345,613,144 | ||
| Investments in affiliated money market funds, at value and cost | 5,328,746 | |||
| Total investments, at value (Cost $297,446,927) | 350,941,890 | |||
| Receivable for: | ||||
| Fund shares sold | 23,852 | |||
| Dividends | 822,991 | |||
| Investment for trustee deferred compensation and retirement plans | 128,156 | |||
| Other assets | 63,726 | |||
| Total assets | 351,980,615 | |||
| Liabilities: | ||||
| Payable for: | ||||
| Fund shares reacquired | 1,137,656 | |||
| Variation margin | 31,223 | |||
| Accrued fees to affiliates | 284,634 | |||
| Accrued other operating expenses | 78,748 | |||
| Trustee deferred compensation and retirement plans | 226,485 | |||
| Total liabilities | 1,758,746 | |||
| Net assets applicable to shares outstanding | $ | 350,221,869 | ||
| Net assets consist of: | ||||
| Shares of beneficial interest | $ | 444,829,817 | ||
| Undistributed net investment income | 1,536,275 | |||
| Undistributed net realized gain (loss) | (149,921,195 | ) | ||
| Unrealized appreciation | 53,776,972 | |||
| $ | 350,221,869 | |||
| Net Assets: | ||||
| Class A | $ | 203,136,992 | ||
| Class B | $ | 19,484,170 | ||
| Class C | $ | 44,572,262 | ||
| Class R | $ | 1,008,621 | ||
| Class Y | $ | 3,869,497 | ||
| Investor Class | $ | 65,142,949 | ||
| Institutional Class | $ | 13,007,378 | ||
| Shares outstanding, $0.01 par value per share, with an unlimited number of shares authorized: | ||||
| Class A | 24,671,182 | |||
| Class B | 2,394,648 | |||
| Class C | 5,489,072 | |||
| Class R | 123,106 | |||
| Class Y | 468,140 | |||
| Investor Class | 7,888,234 | |||
| Institutional Class | 1,573,631 | |||
| Class A: | ||||
| Net asset value per share | $ | 8.23 | ||
| Maximum offering price per share | ||||
| (Net asset value of $8.23 divided by 94.50%) | $ | 8.71 | ||
| Class B: | ||||
| Net asset value and offering price per share | $ | 8.14 | ||
| Class C: | ||||
| Net asset value and offering price per share | $ | 8.12 | ||
| Class R: | ||||
| Net asset value and offering price per share | $ | 8.19 | ||
| Class Y: | ||||
| Net asset value and offering price per share | $ | 8.27 | ||
| Investor Class: | ||||
| Net asset value and offering price per share | $ | 8.26 | ||
| Institutional Class: | ||||
| Net asset value and offering price per share | $ | 8.27 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco U.S. Quantitative Core Fund
Statement of Operations
For the six months ended February 29, 2012
(Unaudited)
| Investment income: | ||||
| Dividends (net of foreign withholding taxes of $2,049) | $ | 3,666,069 | ||
| Dividends from affiliated money market funds | 3,172 | |||
| Total investment income | 3,669,241 | |||
| Expenses: | ||||
| Advisory fees | 1,001,654 | |||
| Administrative services fees | 68,659 | |||
| Custodian fees | 3,952 | |||
| Distribution fees: | ||||
| Class A | 245,188 | |||
| Class B | 96,566 | |||
| Class C | 221,538 | |||
| Class R | 2,824 | |||
| Investor Class | 76,335 | |||
| Transfer agent fees — A, B, C, R, Y and Investor | 465,975 | |||
| Transfer agent fees — Institutional | 2,147 | |||
| Trustees’ and officers’ fees and benefits | 21,374 | |||
| Other | 67,112 | |||
| Total expenses | 2,273,324 | |||
| Less: Fees waived, expenses reimbursed and expense offset arrangement(s) | (371,239 | ) | ||
| Net expenses | 1,902,085 | |||
| Net investment income | 1,767,156 | |||
| Realized and unrealized gain (loss) from: | ||||
| Net realized gain (loss) from: | ||||
| Investment securities | (2,699,075 | ) | ||
| Futures contracts | 778,274 | |||
| (1,920,801 | ) | |||
| Change in net unrealized appreciation of: | ||||
| Investment securities | 40,249,386 | |||
| Futures contracts | 673 | |||
| 40,250,059 | ||||
| Net realized and unrealized gain | 38,329,258 | |||
| Net increase in net assets resulting from operations | $ | 40,096,414 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco U.S. Quantitative Core Fund
Statement of Changes in Net Assets
For the six months ended February 29, 2012 and the year ended August 31, 2011
(Unaudited)
| February 29, | August 31, | |||||||
| 2012 | 2011 | |||||||
| Operations: | ||||||||
| Net investment income | $ | 1,767,156 | $ | 1,439,286 | ||||
| Net realized gain (loss) | (1,920,801 | ) | 17,950,764 | |||||
| Change in net unrealized appreciation (depreciation) | 40,250,059 | (31,884,101 | ) | |||||
| Net increase (decrease) in net assets resulting from operations | 40,096,414 | (12,494,051 | ) | |||||
| Distributions to shareholders from net investment income: | ||||||||
| Class A | (930,525 | ) | (18,026 | ) | ||||
| Class B | (41,450 | ) | (754 | ) | ||||
| Class C | (95,868 | ) | (862 | ) | ||||
| Class R | (5,087 | ) | (14,776 | ) | ||||
| Class Y | (21,355 | ) | (2,233 | ) | ||||
| Investor Class | (288,346 | ) | (849,485 | ) | ||||
| Institutional Class | (71,710 | ) | (175,166 | ) | ||||
| Total distributions from net investment income | (1,454,341 | ) | (1,061,302 | ) | ||||
| Share transactions–net: | ||||||||
| Class A | (23,700,885 | ) | 223,179,943 | |||||
| Class B | (3,424,302 | ) | 22,788,387 | |||||
| Class C | (8,898,051 | ) | 53,420,675 | |||||
| Class R | (405,154 | ) | (255,424 | ) | ||||
| Class Y | (401,989 | ) | 4,036,558 | |||||
| Investor Class | (5,841,797 | ) | (17,699,092 | ) | ||||
| Institutional Class | (83,238 | ) | (2,143,210 | ) | ||||
| Net increase (decrease) in net assets resulting from share transactions | (42,755,416 | ) | 283,327,837 | |||||
| Net increase (decrease) in net assets | (4,113,343 | ) | 269,772,484 | |||||
| Net assets: | ||||||||
| Beginning of period | 354,335,212 | 84,562,728 | ||||||
| End of period (includes undistributed net investment income of $1,536,275 and $1,223,460, respectively) | $ | 350,221,869 | $ | 354,335,212 | ||||
Notes to Financial Statements
February 29, 2012
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco U.S. Quantitative Core Fund (the “Fund”), is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (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 twelve 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 seven different classes of shares: Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class. Investor Class shares of the Fund are offered only to certain grandfathered 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
10 Invesco U.S. Quantitative Core Fund
CDSC. Class R, Class Y, Investor Class and Institutional Class 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. 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. 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 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. | |
| A security listed or traded on an exchange (except convertible bonds) 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 ask 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 ask prices. For purposes of determining net asset value 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 bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. | ||
| Foreign securities (including foreign exchange contracts) 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 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 trade is not the current value as of the close of the NYSE. Foreign securities 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 are 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/ask 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. | ||
| 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. | ||
| B. | 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 is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes. | |
| 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 Statement of Changes in Net Assets, or the net investment income per share and 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. |
11 Invesco U.S. Quantitative Core Fund
| C. | 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 income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. | |
| E. | Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of 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 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. | ||
| F. | 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 the Institutional Class are charged to such 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. | |
| G. | 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. | |
| H. | 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 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. | |
| I. | Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities. | |
| J. | Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. |
12 Invesco U.S. Quantitative Core Fund
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 pays 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 | .60% | ||
| Next $250 million | 0 | .575% | ||
| Next $500 million | 0 | .55% | ||
| Next $1.5 billion | 0 | .525% | ||
| Next $2.5 billion | 0 | .50% | ||
| Next $2.5 billion | 0 | .475% | ||
| Next $2.5 billion | 0 | .45% | ||
| Over $10 billion | 0 | .425% | ||
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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2012, 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 (excluding certain items discussed below) of Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class shares to 1.00%, 1.75%, 1.75%, 1.25%, 0.75%, 1.00% and 0.75% of average daily net assets. 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 operating expenses after fee waiver 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 the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.
Further, the Adviser has contractually agreed, through at least June 30, 2012, 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 six months ended February 29, 2012, the Adviser waived advisory fees $3,368 and reimbursed class level expenses of $220,937, $21,754, $49,906, $1,272, $4,111 and $68,785 of Class A, Class B, Class C, Class R, Class Y and Investor Class shares, respectively.
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 six months ended February 29, 2012, 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 are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 29, 2012, 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 Y, Investor Class and Institutional Class 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 assets of Class B and Class C shares, 0.50% of the average daily net assets of Class R shares and 0.25% of the average daily net assets of Investor Class shares. 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 six months ended February 29, 2012, 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 six months ended February 29, 2012, IDI advised the Fund that IDI retained $4,939 in front-end sales commissions from the sale of Class A shares and $5, $18,460 and $1,033 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
13 Invesco U.S. Quantitative Core Fund
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 February 29, 2012. 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.
During the six months ended February 29, 2012, there were no significant transfers between investment levels.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Equity Securities | $ | 349,831,907 | $ | — | $ | — | $ | 349,831,907 | ||||||||
| U.S. Treasury Securities | — | 1,109,983 | — | 1,109,983 | ||||||||||||
| $ | 349,831,907 | $ | 1,109,983 | $ | — | $ | 350,941,890 | |||||||||
| Futures* | 282,009 | — | — | 282,009 | ||||||||||||
| Total Investments | $ | 350,113,916 | $ | 1,109,983 | $ | — | $ | 351,223,899 | ||||||||
| * | Unrealized appreciation. |
NOTE 4—Derivative Investments
Value of Derivative Instruments at Period-End
The table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of February 29, 2012:
| Value | ||||||||
| Risk Exposure/Derivative Type | Assets | Liabilities | ||||||
| Market risk | ||||||||
Futures contracts(a) | $ | 282,009 | $ | — | ||||
| (a) | Includes cumulative appreciation of futures contracts. Only current day’s variation margin receivable is reported within the Statement of Assets and Liabilities. |
Effect of Derivative Instruments for the six months ended February 29, 2012
The table below summarizes the gains on derivative instruments, detailed by primary risk exposure, recognized in earnings during the period:
| Location of Gain on | ||||
| Statement of | ||||
| Operations | ||||
| Futures* | ||||
| Realized Gain | ||||
| Market risk | $ | 778,274 | ||
| Change in Unrealized Appreciation | ||||
| Market risk | 673 | |||
| Total | $ | 778,947 | ||
| * | The average notional value of futures outstanding during the period was $6,514,039. |
| Open Futures Contracts | ||||||||||||||||
| Number of | Expiration | Notional | Unrealized | |||||||||||||
| Long Contracts | Contracts | Month | Value | Appreciation | ||||||||||||
E-Mini S&P 500 Index | 88 | March-2012 | $ | 6,003,360 | $ | 282,009 | ||||||||||
14 Invesco U.S. Quantitative Core Fund
NOTE 5—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended February 29, 2012, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $1,106.
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 are eligible to participate in a retirement plan that provides 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.
During the six months ended February 29, 2012, the Fund paid legal fees of $0 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.
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—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
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. The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, 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. Additionally, post-enactment capital loss carryovers 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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2011, which expires as follows:
| Capital Loss Carryforward* | ||||||||||||
| Expiration | Short-Term | Long-Term | Total | |||||||||
| August 31, 2015 | $ | 27,608,981 | $ | — | $ | 27,608,981 | ||||||
| August 31, 2016 | 54,204,215 | — | 54,204,215 | |||||||||
| August 31, 2018 | 63,999,476 | — | 63,999,476 | |||||||||
| Total capital loss carryforward | $ | 145,812,672 | $ | — | $ | 145,812,672 | ||||||
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. To the extent that unrealized gains as of May 23, 2011, the date of reorganization of Invesco Select Equity Fund and Invesco Van Kampen Premium Income Fund into the Fund are realized on securities held in each fund at such date of reorganization, the capital loss carryforward may be further limited for up to five years from the date of the reorganization. |
NOTE 9—Investment Securities
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 six months ended February 29, 2012 was $66,205,706 and $107,746,975, respectively. Cost of investments 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 Investment Securities on a Tax Basis | ||||
| Aggregate unrealized appreciation of investment securities | $ | 56,948,240 | ||
| Aggregate unrealized (depreciation) of investment securities | (5,359,663 | ) | ||
| Net unrealized appreciation of investment securities | $ | 51,588,577 | ||
| Cost of investments for tax purposes is $299,353,313. | ||||
15 Invesco U.S. Quantitative Core Fund
NOTE 10—Share Information
| Summary of Share Activity | ||||||||||||||||
| Six months ended | Year ended | |||||||||||||||
| February 29, 2012(a) | August 31, 2011 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Sold: | ||||||||||||||||
| Class A | 821,791 | $ | 6,167,382 | 444,064 | $ | 3,252,631 | ||||||||||
| Class B | 32,853 | 243,977 | 30,958 | 318,539 | ||||||||||||
| Class C | 150,982 | 1,136,601 | 60,904 | 612,804 | ||||||||||||
| Class R | 4,576 | 33,987 | 28,885 | 217,255 | ||||||||||||
| Class Y | 28,891 | 220,589 | 28,172 | 202,660 | ||||||||||||
| Investor Class | 364,266 | 2,739,511 | 1,130,397 | 8,652,358 | ||||||||||||
| Institutional Class | 77,062 | 556,009 | 110,714 | 848,843 | ||||||||||||
| Issued as reinvestment of dividends: | ||||||||||||||||
| Class A | 110,291 | 819,459 | 2,411 | 17,863 | ||||||||||||
| Class B | 4,705 | 34,581 | 3 | 17 | ||||||||||||
| Class C | 9,743 | 71,514 | 107 | 789 | ||||||||||||
| Class R | 494 | 3,648 | 1,985 | 14,673 | ||||||||||||
| Class Y | 2,083 | 15,520 | 280 | 2,075 | ||||||||||||
| Investor Class | 37,687 | 280,769 | 111,078 | 825,308 | ||||||||||||
| Institutional Class | 9,615 | 71,634 | 23,584 | 174,990 | ||||||||||||
| Automatic conversion of Class B shares to Class A shares: | ||||||||||||||||
| Class A | 195,564 | 1,473,934 | 151,051 | 1,168,291 | ||||||||||||
| Class B | (197,828 | ) | (1,473,934 | ) | (152,536 | ) | (1,168,291 | ) | ||||||||
Issued in connection with acquisitions:(b) | ||||||||||||||||
| Class A | — | — | 30,466,369 | 244,337,285 | ||||||||||||
| Class B | — | — | 3,267,037 | 25,973,165 | ||||||||||||
| Class C | — | — | 7,619,899 | 60,448,451 | ||||||||||||
| Class Y | — | — | 603,577 | 4,854,243 | ||||||||||||
| Reacquired: | ||||||||||||||||
| Class A | (4,290,491 | ) | (32,161,660 | ) | (3,430,939 | ) | (25,596,127 | ) | ||||||||
| Class B | (302,405 | ) | (2,228,926 | ) | (316,001 | ) | (2,335,043 | ) | ||||||||
| Class C | (1,376,294 | ) | (10,106,166 | ) | (1,011,485 | ) | (7,641,369 | ) | ||||||||
| Class R | (59,938 | ) | (442,789 | ) | (65,749 | ) | (487,352 | ) | ||||||||
| Class Y | (84,793 | ) | (638,098 | ) | (132,590 | ) | (1,022,420 | ) | ||||||||
| Investor Class | (1,191,702 | ) | (8,862,077 | ) | (3,589,166 | ) | (27,176,758 | ) | ||||||||
| Institutional Class | (93,419 | ) | (710,881 | ) | (419,448 | ) | (3,167,043 | ) | ||||||||
| Net increase (decrease) in share activity | (5,746,267 | ) | $ | (42,755,416 | ) | 34,963,561 | $ | 283,327,837 | ||||||||
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 19% 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. | |
| (b) | As of the opening of business on May 23, 2011, the Fund acquired all of the net assets of Invesco Select Equity Fund and Invesco Van Kampen Equity Premium Income Fund pursuant to a plan of reorganization approved by the Trustees of the Fund on November 10, 2010 and by the shareholders of Invesco Select Equity Fund and Invesco Van Kampen Equity Premium Income Fund on April 14, 2011. The acquisition was accomplished by a tax-free exchange of 41,956,882 shares of the Fund for 11,395,760 shares outstanding of Invesco Select Equity Fund and 14,365,444 shares outstanding of Invesco Van Kampen Equity Premium Income Fund as of the close of business on May 20, 2011. Class A, Class B, Class C and Class Y shares of Invesco Select Equity Fund and Class A, Class B, Class C and Class Y shares of Invesco Van Kampen Equity Premium Income Fund were exchanged for Class A, Class B, Class C and Class Y shares of the Fund, respectively, based on the relative net asset value of Invesco Select Equity Fund and Invesco Van Kampen Equity Premium Income Fund to the net asset value of the Fund on the close of business, May 20, 2011. Invesco Select Equity Fund’s net assets at that date of $213,098,974, including $34,790,682 of unrealized appreciation, and Invesco Van Kampen Equity Premium Income Fund’s net assets at that date of $122,514,170, including $9,911,355 of unrealized appreciation, were combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $90,413,859. The net assets of the Fund immediately following the acquisition were $426,027,003. |
16 Invesco U.S. Quantitative Core Fund
NOTE 11—Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Ratio of | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net gains | expenses | expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (losses) on | to average | to average net | Ratio of net | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net asset | Net | securities | Dividends | Distributions | net assets | assets without | investment | |||||||||||||||||||||||||||||||||||||||||||||||||
| value, | investment | (both | Total from | from net | from net | Net asset | Net assets, | with fee waivers | fee waivers | income (loss) | ||||||||||||||||||||||||||||||||||||||||||||||
| beginning | income | realized and | investment | investment | realized | Total | value, end | Total | end of period | and/or expenses | and/or expenses | to average | Portfolio | |||||||||||||||||||||||||||||||||||||||||||
| of period | (loss) | unrealized) | operations | income | gains | distributions | of period | return(a) | (000s omitted) | absorbed | absorbed | net assets | turnover(b) | |||||||||||||||||||||||||||||||||||||||||||
| Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | $ | 7.34 | $ | 0.05 | (c) | $ | 0.88 | $ | 0.93 | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | $ | 8.23 | 12.66 | % | $ | 203,137 | 1.00 | %(d) | 1.23 | %(d) | 1.17 | %(d) | 20 | % | |||||||||||||||||||||||||
| Year ended 08/31/11 | 6.29 | 0.07 | (c) | 1.06 | 1.13 | (0.08 | ) | — | (0.08 | ) | 7.34 | 18.00 | 204,311 | 1.00 | 1.22 | 0.90 | 125 | |||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 6.47 | 0.06 | (c) | (0.12 | ) | (0.06 | ) | (0.12 | ) | — | (0.12 | ) | 6.29 | (1.07 | ) | 1,265 | 1.00 | 1.31 | 0.93 | 71 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 9.89 | 0.11 | (c) | (2.16 | ) | (2.05 | ) | (0.07 | ) | (1.30 | ) | (1.37 | ) | 6.47 | (18.66 | ) | 1,618 | 0.66 | 1.29 | 1.85 | 77 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 11.19 | 0.14 | (c) | (1.37 | ) | (1.23 | ) | (0.02 | ) | (0.05 | ) | (0.07 | ) | 9.89 | (11.03 | ) | 951 | 0.75 | 1.93 | 1.34 | 118 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 10.19 | 0.08 | (c) | 1.10 | 1.18 | (0.18 | ) | — | (0.18 | ) | 11.19 | 11.60 | 1,532 | 1.02 | 6.88 | 0.67 | 79 | |||||||||||||||||||||||||||||||||||||||
| Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 7.26 | 0.02 | (c) | 0.88 | 0.90 | (0.02 | ) | — | (0.02 | ) | 8.14 | 12.37 | 19,484 | 1.75 | (d) | 1.98 | (d) | 0.42 | (d) | 20 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 6.22 | 0.01 | (c) | 1.06 | 1.07 | (0.03 | ) | — | (0.03 | ) | 7.26 | 17.15 | 20,750 | 1.75 | 1.97 | 0.15 | 125 | |||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 6.37 | 0.01 | (c) | (0.13 | ) | (0.12 | ) | (0.03 | ) | — | (0.03 | ) | 6.22 | (1.85 | ) | 173 | 1.75 | 2.06 | 0.18 | 71 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 9.79 | 0.06 | (c) | (2.13 | ) | (2.07 | ) | (0.05 | ) | (1.30 | ) | (1.35 | ) | 6.37 | (19.10 | ) | 211 | 1.41 | 2.04 | 1.10 | 77 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 11.14 | 0.06 | (c) | (1.36 | ) | (1.30 | ) | — | (0.05 | ) | (0.05 | ) | 9.79 | (11.71 | ) | 165 | 1.50 | 2.68 | 0.59 | 118 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 10.16 | (0.01 | )(c) | 1.10 | 1.09 | (0.11 | ) | — | (0.11 | ) | 11.14 | 10.74 | 847 | 1.77 | 7.63 | (0.08 | ) | 79 | ||||||||||||||||||||||||||||||||||||||
| Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 7.25 | 0.02 | (c) | 0.87 | 0.89 | (0.02 | ) | — | (0.02 | ) | 8.12 | 12.24 | 44,572 | 1.75 | (d) | 1.98 | (d) | 0.42 | (d) | 20 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 6.22 | 0.01 | (c) | 1.05 | 1.06 | (0.03 | ) | — | (0.03 | ) | 7.25 | 16.99 | 48,592 | 1.75 | 1.97 | 0.15 | 125 | |||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 6.37 | 0.01 | (c) | (0.13 | ) | (0.12 | ) | (0.03 | ) | — | (0.03 | ) | 6.22 | (1.85 | ) | 219 | 1.75 | 2.06 | 0.18 | 71 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 9.79 | 0.06 | (c) | (2.13 | ) | (2.07 | ) | (0.05 | ) | (1.30 | ) | (1.35 | ) | 6.37 | (19.10 | ) | 254 | 1.41 | 2.04 | 1.10 | 77 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 11.14 | 0.06 | (c) | (1.36 | ) | (1.30 | ) | — | (0.05 | ) | (0.05 | ) | 9.79 | (11.71 | ) | 249 | 1.50 | 2.68 | 0.59 | 118 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 10.16 | (0.01 | )(c) | 1.10 | 1.09 | (0.11 | ) | — | (0.11 | ) | 11.14 | 10.74 | 1,043 | 1.77 | 7.63 | (0.08 | ) | 79 | ||||||||||||||||||||||||||||||||||||||
| Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 7.31 | 0.03 | (c) | 0.88 | 0.91 | (0.03 | ) | — | (0.03 | ) | 8.19 | 12.47 | 1,009 | 1.25 | (d) | 1.48 | (d) | 0.92 | (d) | 20 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 6.27 | 0.05 | (c) | 1.06 | 1.11 | (0.07 | ) | — | (0.07 | ) | 7.31 | 17.68 | 1,300 | 1.25 | 1.47 | 0.65 | 125 | |||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 6.45 | 0.05 | (c) | (0.12 | ) | (0.07 | ) | (0.11 | ) | — | (0.11 | ) | 6.27 | (1.30 | ) | 1,335 | 1.25 | 1.56 | 0.68 | 71 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 9.86 | 0.10 | (c) | (2.15 | ) | (2.05 | ) | (0.06 | ) | (1.30 | ) | (1.36 | ) | 6.45 | (18.70 | ) | 77 | 0.91 | 1.54 | 1.60 | 77 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 11.17 | 0.11 | (c) | (1.37 | ) | (1.26 | ) | — | (0.05 | ) | (0.05 | ) | 9.86 | (11.32 | ) | 53 | 1.00 | 2.18 | 1.09 | 118 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 10.18 | 0.05 | (c) | 1.10 | 1.15 | (0.16 | ) | — | (0.16 | ) | 11.17 | 11.33 | 684 | 1.27 | 7.13 | 0.42 | 79 | |||||||||||||||||||||||||||||||||||||||
| Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 7.37 | 0.05 | (c) | 0.89 | 0.94 | (0.04 | ) | — | (0.04 | ) | 8.27 | 12.88 | 3,869 | 0.75 | (d) | 0.98 | (d) | 1.42 | (d) | 20 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 6.32 | 0.09 | (c) | 1.06 | 1.15 | (0.10 | ) | — | (0.10 | ) | 7.37 | 18.24 | 3,846 | 0.75 | 0.97 | 1.15 | 125 | |||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 6.50 | 0.08 | (c) | (0.13 | ) | (0.05 | ) | (0.13 | ) | — | (0.13 | ) | 6.32 | (0.85 | ) | 142 | 0.75 | 1.06 | 1.18 | 71 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09(e) | 8.29 | 0.12 | (c) | (0.54 | ) | (0.42 | ) | (0.07 | ) | (1.30 | ) | (1.37 | ) | 6.50 | (2.50 | ) | 211 | 0.43 | (f) | 1.07 | (f) | 2.08 | (f) | 77 | ||||||||||||||||||||||||||||||||
| Investor Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 7.36 | 0.05 | (c) | 0.89 | 0.94 | (0.04 | ) | — | (0.04 | ) | 8.26 | 12.76 | 65,143 | 1.00 | (d) | 1.23 | (d) | 1.17 | (d) | 20 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 6.32 | 0.07 | (c) | 1.05 | 1.12 | (0.08 | ) | — | (0.08 | ) | 7.36 | 17.76 | 63,890 | 1.00 | 1.22 | 0.90 | 125 | |||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 6.50 | 0.06 | (c) | (0.12 | ) | (0.06 | ) | (0.12 | ) | — | (0.12 | ) | 6.32 | (1.07 | ) | 69,635 | 1.00 | 1.31 | 0.93 | 71 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 9.90 | 0.12 | (c) | (2.15 | ) | (2.03 | ) | (0.07 | ) | (1.30 | ) | (1.37 | ) | 6.50 | (18.43 | ) | 88,674 | 0.66 | 1.29 | 1.85 | 77 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/08(e) | 10.73 | 0.05 | (0.88 | ) | (0.83 | ) | — | — | — | 9.90 | (7.73 | ) | 136,838 | 0.60 | (f) | 1.10 | (f) | 1.49 | (f) | 118 | ||||||||||||||||||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 7.37 | 0.05 | (c) | 0.89 | 0.94 | (0.04 | ) | — | (0.04 | ) | 8.27 | 12.89 | 13,007 | 0.72 | (d) | 0.72 | (d) | 1.45 | (d) | 20 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 6.32 | 0.09 | (c) | 1.06 | 1.15 | (0.10 | ) | — | (0.10 | ) | 7.37 | 18.24 | 11,645 | 0.74 | 0.77 | 1.18 | 125 | |||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 6.50 | 0.08 | (c) | (0.12 | ) | (0.04 | ) | (0.14 | ) | — | (0.14 | ) | 6.32 | (0.83 | ) | 11,793 | 0.75 | 0.91 | 1.18 | 71 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 9.91 | 0.13 | (c) | (2.16 | ) | (2.03 | ) | (0.08 | ) | (1.30 | ) | (1.38 | ) | 6.50 | (18.32 | ) | 22,128 | 0.41 | 0.89 | 2.10 | 77 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 11.21 | 0.16 | (c) | (1.36 | ) | (1.20 | ) | (0.05 | ) | (0.05 | ) | (0.10 | ) | 9.91 | (10.79 | ) | 29,374 | 0.50 | 1.57 | 1.59 | 118 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 10.20 | 0.10 | (c) | 1.10 | 1.20 | (0.19 | ) | — | (0.19 | ) | 11.21 | 11.85 | 942 | 0.77 | 6.55 | 0.92 | 79 | |||||||||||||||||||||||||||||||||||||||
| (a) | 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. | |
| (b) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the period ended August 31, 2011, the portfolio turnover calculation excludes the value of securities purchased of $286,080,448 and sold of $155,521,831 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco Select Equity Fund and Invesco Van Kampen Equity Premium Income Fund into the Fund. | |
| (c) | Calculated using average shares outstanding. | |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $197,228, $19,419, $44,224, $1,136, $3,670, $61,403 and $12,039 for Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class shares, respectively. | |
| (e) | Commencement date of October 3, 2008 and April 25, 2008 for Class Y and Investor Class shares, respectively. | |
| (f) | Annualized. |
NOTE 12—Subsequent Event
Effective March 1, 2012, the Fund changed its name to Invesco U.S. Quantitative Core Fund.
17 Invesco U.S. Quantitative Core 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, and redemption fees, 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 September 1, 2011 through February 29, 2012.
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, contingent deferred sales charges on redemptions, and redemption fees, 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.
| HYPOTHETICAL | ||||||||||||||||||||||||||||||
| (5% annual return before | ||||||||||||||||||||||||||||||
| ACTUAL | expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Ending | Expenses | Annualized | |||||||||||||||||||||||||
| Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||||||||||||||||||||
| Class | (09/01/11) | (02/29/12)1 | Period2 | (02/29/12) | Period2 | Ratio | ||||||||||||||||||||||||
| A | $ | 1,000.00 | $ | 1,126.60 | $ | 5.29 | $ | 1,019.89 | $ | 5.02 | 1.00 | % | ||||||||||||||||||
| B | 1,000.00 | 1,123.70 | 9.24 | 1,016.16 | 8.77 | 1.75 | ||||||||||||||||||||||||
| C | 1,000.00 | 1,122.40 | 9.23 | 1,016.16 | 8.77 | 1.75 | ||||||||||||||||||||||||
| R | 1,000.00 | 1,124.70 | 6.60 | 1,018.65 | 6.27 | 1.25 | ||||||||||||||||||||||||
| Y | 1,000.00 | 1,128.80 | 3.97 | 1,021.13 | 3.77 | 0.75 | ||||||||||||||||||||||||
| Investor | 1,000.00 | 1,127.60 | 5.29 | 1,019.89 | 5.02 | 1.00 | ||||||||||||||||||||||||
| Institutional | 1,000.00 | 1,128.90 | 3.81 | 1,021.28 | 3.62 | 0.72 | ||||||||||||||||||||||||
| 1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2011 through February 29, 2012, 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 182/366 to reflect the most recent fiscal half year. |
18 Invesco U.S. Quantitative Core Fund
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Invesco privacy policy
You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.
Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.
Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.
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 811-09913 and 333-36074.
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.
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 U.S. 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.
| USQC-SAR-1 | Invesco Distributors, Inc. |
Invesco Van Kampen American Franchise Fund
Semiannual Report to Shareholders § February 29, 2012
Nasdaq:
A: VAFAX § B: VAFBX § C: VAFCX § R: VAFRX § Y: VAFIX § Institutional: VAFNX
A: VAFAX § B: VAFBX § C: VAFCX § R: VAFRX § Y: VAFIX § Institutional: VAFNX
| 2 | Fund Performance | |
| 4 | Letters to Shareholders | |
| 5 | Schedule of Investments | |
| 8 | Financial Statements | |
| 10 | Notes to Financial Statements | |
| 17 | Financial Highlights | |
| 18 | Fund Expenses | |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
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 | ||
Fund Performance
Performance summary
Fund vs. Indexes
Cumulative total returns, 8/31/11 to 2/29/12, 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 | 9.45 | % | ||
| Class B Shares | 9.49 | |||
| Class C Shares | 9.01 | |||
| Class R Shares | 9.29 | |||
| Class Y Shares | 9.57 | |||
| Institutional Class Shares | 9.60 | |||
S&P 500 Index▼(Broad Market Index) | 13.30 | |||
Russell 1000 Growth Index ▼(Style-Specific Index) | 13.76 | |||
Lipper Large-Cap Growth Funds Index▼(Peer Group Index) | 12.52 | |||
Source(s): ▼ Lipper Inc.
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 Large-Cap Growth Funds Index is an unmanaged index considered representative of large-cap growth funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
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.
2 Invesco Van Kampen American Franchise Fund
Average Annual Total Returns
As of 2/29/12, including maximum applicable
sales charges
sales charges
| Class A Shares | ||||||||
| Inception (6/23/05) | 4.88 | % | ||||||
| 5 Years | 2.48 | |||||||
| 1 Year | -5.19 | |||||||
| Class B Shares | ||||||||
| Inception (6/23/05) | 5.03 | % | ||||||
| 5 Years | 2.61 | |||||||
| 1 Year | -4.96 | |||||||
| Class C Shares | ||||||||
| Inception (6/23/05) | 5.01 | % | ||||||
| 5 Years | 2.95 | |||||||
| 1 Year | -1.48 | |||||||
| Class R Shares | ||||||||
| Inception | 5.49 | % | ||||||
| 5 Years | 3.38 | |||||||
| 1 Year | 0.00 | |||||||
| Class Y Shares | ||||||||
| Inception (6/23/05) | 6.00 | % | ||||||
| 5 Years | 3.90 | |||||||
| 1 Year | 0.37 | |||||||
| Institutional Class Shares | ||||||||
| Inception | 5.84 | % | ||||||
| 5 Years | 3.75 | |||||||
| 1 Year | 0.53 | |||||||
Effective June 1, 2010, Class A, Class B, Class C and Class I shares of the predecessor fund, Van Kampen American Franchise Fund, advised by Van Kampen Asset Management were reorganized into Class A, Class B, Class C and Class Y shares, respectively, of Invesco Van Kampen American Franchise Fund. Returns shown above for Class A, Class B, Class C and Class Y shares are blended returns of the predecessor fund and Invesco Van Kampen American Franchise Fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R shares incepted on May 23, 2011. Performance shown prior to that date is that of the predecessor fund’s Class A shares, restated to reflect the higher 12b-1 fees applicable to Class R shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.
Institutional Class shares incepted on December 22, 2010. Performance shown prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share
Average Annual Total Returns
As of 12/31/11, the most recent calendar quarter-end, including maximum applicable sales charges
| Class A Shares | ||||||||
| Inception (6/23/05) | 2.95 | % | ||||||
| 5 Years | -0.20 | |||||||
| 1 Year | -11.94 | |||||||
| Class B Shares | ||||||||
| Inception (6/23/05) | 3.12 | % | ||||||
| 5 Years | -0.11 | |||||||
| 1 Year | -11.73 | |||||||
| Class C Shares | ||||||||
| Inception (6/23/05) | 3.11 | % | ||||||
| 5 Years | 0.25 | |||||||
| 1 Year | -8.36 | |||||||
| Class R Shares | ||||||||
| Inception | 3.58 | % | ||||||
| 5 Years | 0.68 | |||||||
| 1 Year | -7.10 | |||||||
| Class Y Shares | ||||||||
| Inception (6/23/05) | 4.08 | % | ||||||
| 5 Years | 1.16 | |||||||
| 1 Year | -6.73 | |||||||
| Institutional Class Shares | ||||||||
| Inception | 3.91 | % | ||||||
| 5 Years | 1.02 | |||||||
| 1 Year | -6.51 | |||||||
performance reflects any applicable fee waivers or expense reimbursements.
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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. 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 and Institutional Class shares was 1.05%, 1.05%, 1.59%, 1.30%, 0.80% and 0.68 respectively.1,2 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 and Institutional Class shares was 1.16%, 1.16%, 1.70%, 1.41%, 0.91 and 0.68%, 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. For shares purchased prior to June 1, 2010, the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the sixth year. For shares purchased on or after June 1, 2010, the CDSC on Class B shares declines from 5% 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 Y and Institutional Class 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.
Had the adviser not waived fees and/ or reimbursed expenses for Class B shares in the past, performance would have been lower.
| 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, 2013. See current prospectus for more information. | |
| 2 | Total annual Fund operating expenses after any contractual fee waivers by the distributor in effect through at least June 30, 2013. See current prospectus for more information. |
3 Invesco Van Kampen American Franchise Fund
Letters to Shareholders
Bruce Crockett
Dear Fellow Shareholders:
Throughout 2011, we experienced volatile, challenging markets that presented both opportunities and risks for investors. Based on everything I’ve read, this year could potentially be just as interesting, with continued economic uncertainty and market volatility.
With this in mind, you’ll want to stay informed regarding the markets and keep up to date with news that affects your investment portfolio. Invesco’s website, invesco.com/us, provides a wealth of information about your investments and news regarding global markets.
Regardless of economic conditions and market trends, the Invesco Funds Board of Trustees remains committed to putting your interests first. Throughout 2011, we worked to manage costs, and this remains a continuing focus of your Board. We will continue to oversee the funds with the strong sense of responsibility for your money and your continued trust that we’ve always maintained.
I would like to close by thanking Bob Baker for his distinguished 30-year service with the Invesco Funds Board and his unflagging commitment to our funds’ shareholders. As always, I encourage you to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving you in 2012.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Invesco Funds Board of Trustees
Philip Taylor
Dear Shareholders:
This report provides important information about your Fund, including its short- and long-term performance. Also, this report includes a listing of investments held by your Fund at the close of the reporting period.
Investors are likely to confront both opportunities and challenges in 2012. As we saw in 2011, market sentiment can change suddenly and dramatically – and certainly without advance notice – depending on economic developments and world events. Similarly, your own situation, needs and goals can change, requiring adjustments in your financial strategy.
In addition to meeting with your financial adviser regularly to discuss your individual situation, you also may find it helpful to stay abreast of market trends and developments. Doing so may provide reassurance in times of economic uncertainty and market volatility such as we saw last year and may see again this year.
Invesco can help you stay informed about your investments and market trends. On our website, invesco.com/us, we provide timely market updates and commentary from many of our portfolio managers and other investment professionals. Also on our website, you can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer at invesco.com/us.
If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.
All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.
Sincerely,
Philip Taylor
Senior Managing Director, Invesco Ltd.
Senior Managing Director, Invesco Ltd.
4 Invesco Van Kampen American Franchise Fund
Schedule of Investments(a)
February 29, 2012
(Unaudited)
| Shares | Value | |||||||
| Common Stocks & Other Equity Interests–98.90% | ||||||||
| Aerospace & Defense–2.64% | ||||||||
| Boeing Co. (The) | 773,062 | $ | 57,940,997 | |||||
| Precision Castparts Corp. | 617,758 | 103,431,222 | ||||||
| 161,372,219 | ||||||||
| Apparel, Accessories & Luxury Goods–0.95% | ||||||||
| Coach, Inc. | 179,855 | 13,460,348 | ||||||
Prada S.p.A. (Italy)(b)(c) | 3,450,100 | 19,315,333 | ||||||
Prada S.p.A. (Italy)(c) | 4,525,100 | 25,333,705 | ||||||
| 58,109,386 | ||||||||
| Application Software–1.36% | ||||||||
Citrix Systems, Inc.(c) | 1,112,429 | 83,142,943 | ||||||
| Asset Management & Custody Banks–1.19% | ||||||||
| BlackRock, Inc. | 367,123 | 73,057,477 | ||||||
| Auto Parts & Equipment–0.34% | ||||||||
BorgWarner, Inc.(c) | 253,010 | 20,959,348 | ||||||
| Automotive Retail–0.58% | ||||||||
AutoZone, Inc.(c) | 94,064 | 35,225,087 | ||||||
| Biotechnology–1.82% | ||||||||
Celgene Corp.(c) | 610,444 | 44,760,806 | ||||||
Gilead Sciences, Inc.(c) | 1,456,195 | 66,256,873 | ||||||
| 111,017,679 | ||||||||
| Broadcasting–0.70% | ||||||||
| CBS Corp.–Class B | 1,426,120 | 42,640,988 | ||||||
| Cable & Satellite–3.85% | ||||||||
| Comcast Corp.–Class A | 2,686,579 | 78,931,691 | ||||||
DIRECTV–Class A(c) | 2,995,927 | 138,771,339 | ||||||
| DISH Network Corp.–Class A | 616,844 | 17,993,339 | ||||||
| 235,696,369 | ||||||||
| Casinos & Gaming–1.31% | ||||||||
| Las Vegas Sands Corp. | 1,436,577 | 79,888,047 | ||||||
| Communications Equipment–3.84% | ||||||||
F5 Networks, Inc.(c) | 268,555 | 33,558,633 | ||||||
Juniper Networks, Inc.(c) | 1,308,882 | 29,790,154 | ||||||
| QUALCOMM, Inc. | 2,754,959 | 171,303,351 | ||||||
| 234,652,138 | ||||||||
| Computer Hardware–10.83% | ||||||||
Apple Inc.(c) | 1,221,062 | 662,352,871 | ||||||
| Computer Storage & Peripherals–3.88% | ||||||||
EMC Corp.(c) | 5,438,894 | 150,602,975 | ||||||
NetApp, Inc.(c) | 1,545,093 | 66,438,999 | ||||||
SanDisk Corp.(c) | 411,138 | 20,334,885 | ||||||
| 237,376,859 | ||||||||
| Construction & Engineering–1.23% | ||||||||
Foster Wheeler AG (Switzerland)(c) | 3,062,211 | 75,422,257 | ||||||
| Construction & Farm Machinery & Heavy Trucks–1.48% | ||||||||
| Cummins Inc. | 748,936 | 90,299,214 | ||||||
| Data Processing & Outsourced Services–2.39% | ||||||||
| MasterCard, Inc.–Class A | 138,388 | 58,122,960 | ||||||
| Visa Inc.–Class A | 756,537 | 88,038,211 | ||||||
| 146,161,171 | ||||||||
| Department Stores–1.56% | ||||||||
| Macy’s, Inc. | 2,515,475 | 95,512,586 | ||||||
| Diversified Banks–0.48% | ||||||||
| Wells Fargo & Co. | 940,390 | 29,424,803 | ||||||
| Diversified Metals & Mining–0.56% | ||||||||
| Freeport-McMoRan Copper & Gold Inc. | 797,413 | 33,937,897 | ||||||
| Drug Retail–1.64% | ||||||||
| CVS Caremark Corp. | 2,228,926 | 100,524,563 | ||||||
| Fertilizers & Agricultural Chemicals–1.53% | ||||||||
| Monsanto Co. | 703,985 | 54,474,360 | ||||||
| Mosaic Co. (The) | 671,911 | 38,802,860 | ||||||
| 93,277,220 | ||||||||
| Footwear–1.01% | ||||||||
| NIKE, Inc.–Class B | 574,368 | 61,985,795 | ||||||
| Gold–1.51% | ||||||||
| Goldcorp, Inc. (Canada) | 1,908,881 | 92,580,729 | ||||||
| Health Care Equipment–0.94% | ||||||||
| Baxter International Inc. | 440,885 | 25,628,645 | ||||||
| Medtronic, Inc. | 832,726 | 31,743,515 | ||||||
| 57,372,160 | ||||||||
| Health Care Services–1.47% | ||||||||
Express Scripts, Inc.(c) | 1,686,278 | 89,929,206 | ||||||
| Health Care Technology–0.74% | ||||||||
Allscripts Healthcare Solutions, Inc.(c) | 2,348,911 | 45,380,961 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 Invesco Van Kampen American Franchise Fund
| Shares | Value | |||||||
| Heavy Electrical Equipment–1.51% | ||||||||
ABB Ltd.–ADR (Switzerland)(c) | 4,519,464 | $ | 92,603,817 | |||||
| Home Improvement Retail–0.67% | ||||||||
| Home Depot, Inc. (The) | 858,901 | 40,857,921 | ||||||
| Hotels, Resorts & Cruise Lines–0.82% | ||||||||
| Starwood Hotels & Resorts Worldwide, Inc. | 934,338 | 50,360,818 | ||||||
| Industrial Conglomerates–2.65% | ||||||||
| Danaher Corp. | 2,021,497 | 106,795,686 | ||||||
| General Electric Co. | 2,908,058 | 55,398,505 | ||||||
| 162,194,191 | ||||||||
| Industrial Machinery–0.83% | ||||||||
| Ingersoll-Rand PLC (Ireland) | 1,276,482 | 50,906,102 | ||||||
| Integrated Oil & Gas–2.60% | ||||||||
| Exxon Mobil Corp. | 783,872 | 67,804,928 | ||||||
| Occidental Petroleum Corp. | 873,047 | 91,119,915 | ||||||
| 158,924,843 | ||||||||
| Internet Retail–1.57% | ||||||||
Amazon.com, Inc.(c) | 533,478 | 95,860,662 | ||||||
| Internet Software & Services–5.04% | ||||||||
Baidu, Inc.–ADR (China)(c) | 461,459 | 63,081,445 | ||||||
eBay Inc.(c) | 2,079,486 | 74,320,830 | ||||||
Google Inc.–Class A(c) | 276,210 | 170,766,832 | ||||||
| 308,169,107 | ||||||||
| Investment Banking & Brokerage–0.79% | ||||||||
| Goldman Sachs Group, Inc. (The) | 421,513 | 48,533,007 | ||||||
| IT Consulting & Other Services–1.88% | ||||||||
Cognizant Technology Solutions Corp.–Class A(c) | 1,616,899 | 114,718,984 | ||||||
| Life Sciences Tools & Services–1.34% | ||||||||
| Agilent Technologies, Inc. | 1,876,284 | 81,843,508 | ||||||
| Managed Health Care–1.24% | ||||||||
| UnitedHealth Group Inc. | 1,361,963 | 75,929,437 | ||||||
| Oil & Gas Drilling–1.48% | ||||||||
| Ensco PLC–ADR (United Kingdom) | 1,556,639 | 90,752,054 | ||||||
| Oil & Gas Equipment & Services–5.17% | ||||||||
Cameron International Corp.(c) | 1,036,171 | 57,725,086 | ||||||
| Halliburton Co. | 4,123,481 | 150,878,170 | ||||||
| National Oilwell Varco Inc. | 215,547 | 17,789,094 | ||||||
Weatherford International Ltd.(c) | 5,611,541 | 89,672,425 | ||||||
| 316,064,775 | ||||||||
| Oil & Gas Exploration & Production–1.99% | ||||||||
| Anadarko Petroleum Corp. | 1,034,055 | 86,984,707 | ||||||
| Noble Energy, Inc. | 355,487 | 34,713,305 | ||||||
| 121,698,012 | ||||||||
| Other Diversified Financial Services–2.55% | ||||||||
| JPMorgan Chase & Co. | 3,971,045 | 155,823,806 | ||||||
| Packaged Foods & Meats–0.30% | ||||||||
| Mead Johnson Nutrition Co. | 237,305 | 18,450,464 | ||||||
| Pharmaceuticals–1.67% | ||||||||
| Allergan, Inc. | 1,143,390 | 102,436,310 | ||||||
| Railroads–1.42% | ||||||||
| Union Pacific Corp. | 788,011 | 86,878,213 | ||||||
| Restaurants–1.69% | ||||||||
| Starbucks Corp. | 2,129,844 | 103,425,225 | ||||||
| Semiconductors–2.31% | ||||||||
Broadcom Corp.–Class A(c) | 2,285,174 | 84,894,214 | ||||||
| Texas Instruments Inc. | 860,740 | 28,705,679 | ||||||
| Xilinx, Inc. | 742,876 | 27,434,411 | ||||||
| 141,034,304 | ||||||||
| Soft Drinks–2.07% | ||||||||
Coca-Cola Co. (The) | 1,307,488 | 91,341,111 | ||||||
Monster Beverage Corp.(c) | 617,704 | 35,326,492 | ||||||
| 126,667,603 | ||||||||
| Systems Software–5.03% | ||||||||
Check Point Software Technologies Ltd. (Israel)(c) | 878,909 | 51,117,348 | ||||||
| Microsoft Corp. | 1,977,553 | 62,767,532 | ||||||
| Oracle Corp. | 3,249,653 | 95,117,343 | ||||||
Rovi Corp.(c) | 2,780,611 | 98,656,078 | ||||||
| 307,658,301 | ||||||||
| Trucking–0.91% | ||||||||
| J.B. Hunt Transport Services, Inc. | 1,089,083 | 55,771,940 | ||||||
| Wireless Telecommunication Services–1.54% | ||||||||
| American Tower Corp. | 1,504,280 | 94,137,842 | ||||||
| Total Common Stocks & Other Equity Interests (Cost $4,736,008,851) | 6,049,001,219 | |||||||
| Money Market Funds–1.23% | ||||||||
Liquid Assets Portfolio–Institutional Class(d) | 37,700,528 | 37,700,528 | ||||||
Premier Portfolio–Institutional Class(d) | 37,700,527 | 37,700,527 | ||||||
| Total Money Market Funds (Cost $75,401,055) | 75,401,055 | |||||||
| TOTAL INVESTMENTS–100.13% (Cost $4,811,409,906) | 6,124,402,274 | |||||||
| OTHER ASSETS LESS LIABILITIES–(0.13)% | (7,780,697 | ) | ||||||
| NET ASSETS–100.00% | $ | 6,116,621,577 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Van Kampen American Franchise Fund
Investment Abbreviations:
| ADR | – American Depositary Receipt |
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) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at February 29, 2012 represented 0.32% of the Fund’s Net Assets. | |
| (c) | Non-income producing security. | |
| (d) | The money market fund and the Fund are affiliated by having the same investment adviser. |
By sector, based on Net Assets
as of February 29, 2012
| Information Technology | 36.5 | % | ||
| Consumer Discretionary | 15.1 | |||
| Industrials | 12.7 | |||
| Energy | 11.2 | |||
| Health Care | 9.2 | |||
| Financials | 6.6 | |||
| Consumer Staples | 4.0 | |||
| Materials | 3.6 | |||
| Money Market Funds Plus Other Assets Less Liabilities | 1.1 | |||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Van Kampen American Franchise Fund
Statement of Assets and Liabilities
February 29, 2012
(Unaudited)
| Assets: | ||||
| Investments, at value (Cost $4,736,008,851) | $ | 6,049,001,219 | ||
| Investments in affiliated money market funds, at value and cost | 75,401,055 | |||
| Total investments, at value (Cost $4,811,409,906) | 6,124,402,274 | |||
| Receivable for: | ||||
| Investments sold | 29,393,038 | |||
| Fund shares sold | 4,041,466 | |||
| Dividends | 3,670,115 | |||
| Investment for trustee deferred compensation and retirement plans | 200,618 | |||
| Other assets | 66,839 | |||
| Total assets | 6,161,774,350 | |||
| Liabilities: | ||||
| Payable for: | ||||
| Investments purchased | 31,119,762 | |||
| Fund shares reacquired | 7,472,196 | |||
| Accrued fees to affiliates | 5,024,550 | |||
| Accrued other operating expenses | 894,002 | |||
| Trustee deferred compensation and retirement plans | 642,263 | |||
| Total liabilities | 45,152,773 | |||
| Net assets applicable to shares outstanding | $ | 6,116,621,577 | ||
| Net assets consist of: | ||||
| Shares of beneficial interest | $ | 5,474,997,412 | ||
| Undistributed net investment income (loss) | (8,304,299 | ) | ||
| Undistributed net realized gain (loss) | (663,063,904 | ) | ||
| Unrealized appreciation | 1,312,992,368 | |||
| $ | 6,116,621,577 | |||
| Net Assets: | ||||
| Class A | $ | 5,061,687,390 | ||
| Class B | $ | 338,396,758 | ||
| Class C | $ | 275,130,767 | ||
| Class R | $ | 19,902,878 | ||
| Class Y | $ | 107,200,467 | ||
| Institutional Class | $ | 314,303,317 | ||
| Shares outstanding, $0.01 par value per share, with an unlimited number of shares authorized: | ||||
| Class A | 398,958,856 | |||
| Class B | 27,261,727 | |||
| Class C | 22,168,027 | |||
| Class R | 1,572,151 | |||
| Class Y | 8,395,354 | |||
| Institutional Class | 24,666,232 | |||
| Class A: | ||||
| Net asset value per share | $ | 12.69 | ||
| Maximum offering price per share (Net asset value of $12.69 divided by 94.50%) | $ | 13.43 | ||
| Class B: | ||||
| Net asset value and offering price per share | $ | 12.41 | ||
| Class C: | ||||
| Net asset value and offering price per share | $ | 12.41 | ||
| Class R: | ||||
| Net asset value and offering price per share | $ | 12.66 | ||
| Class Y: | ||||
| Net asset value and offering price per share | $ | 12.77 | ||
| Institutional Class: | ||||
| Net asset value and offering price per share | $ | 12.74 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Van Kampen American Franchise Fund
Statement of Operations
For the six months ended February 29, 2012
(Unaudited)
| Investment income: | ||||
| Dividends (net of foreign withholding taxes of $66,901) | $ | 22,066,060 | ||
| Dividends from affiliated money market funds | 68,434 | |||
| Total investment income | 22,134,494 | |||
| Expenses: | ||||
| Advisory fees | 17,241,087 | |||
| Administrative services fees | 333,331 | |||
| Custodian fees | 68,197 | |||
| Distribution fees: | ||||
| Class A | 5,874,204 | |||
| Class B | 423,885 | |||
| Class C | 1,286,190 | |||
| Class R | 44,271 | |||
| Transfer agent fees — A, B, C, R and Y | 8,594,091 | |||
| Transfer agent fees — Institutional | 49,396 | |||
| Trustees’ and officers’ fees and benefits | 183,135 | |||
| Other | 361,736 | |||
| Total expenses | 34,459,523 | |||
| Less: Fees waived, expenses reimbursed and expense offset arrangement(s) | (4,507,022 | ) | ||
| Net expenses | 29,952,501 | |||
| Net investment income (loss) | (7,818,007 | ) | ||
| Realized and unrealized gain (loss) from: | ||||
| Net realized gain (loss) from: | ||||
| Investment securities (includes net gains (losses) on securities sold to affiliates of $(861,599)) | (87,196,884 | ) | ||
| Foreign currencies | 15,047 | |||
| (87,181,837 | ) | |||
| Change in net unrealized appreciation (depreciation) of: | ||||
| Investment securities | 624,418,239 | |||
| Foreign currencies | (33,289 | ) | ||
| 624,384,950 | ||||
| Net realized and unrealized gain | 537,203,113 | |||
| Net increase in net assets resulting from operations | $ | 529,385,106 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Van Kampen American Franchise Fund
Statement of Changes in Net Assets
For the six months ended February 29, 2012 and the year ended August 31, 2011
(Unaudited)
| February 29, | August 31, | |||||||
| 2012 | 2011 | |||||||
| Operations: | ||||||||
| Net investment income (loss) | $ | (7,818,007 | ) | $ | (8,859,907 | ) | ||
| Net realized gain (loss) | (87,181,837 | ) | 121,385,964 | |||||
| Change in net unrealized appreciation (depreciation) | 624,384,950 | (601,644,385 | ) | |||||
| Net increase (decrease) in net assets resulting from operations | 529,385,106 | (489,118,328 | ) | |||||
| Distributions to shareholders from net realized gains: | ||||||||
| Class A | (49,936,226 | ) | — | |||||
| Class B | (3,657,664 | ) | — | |||||
| Class C | (2,791,849 | ) | — | |||||
| Class R | (188,148 | ) | — | |||||
| Class Y | (1,138,913 | ) | — | |||||
| Institutional Class | (2,112,110 | ) | — | |||||
| Total distributions from net realized gains | (59,824,910 | ) | — | |||||
| Share transactions–net: | ||||||||
| Class A | (218,319,184 | ) | 5,136,608,852 | |||||
| Class B | (60,208,603 | ) | 381,002,155 | |||||
| Class C | (12,064,056 | ) | 261,483,995 | |||||
| Class R | 637,506 | 19,367,257 | ||||||
| Class Y | (17,725,943 | ) | 124,644,695 | |||||
| Institutional Class | 88,165,794 | 215,213,465 | ||||||
| Net increase (decrease) in net assets resulting from share transactions | (219,514,486 | ) | 6,138,320,419 | |||||
| Net increase in net assets | 250,045,710 | 5,649,202,091 | ||||||
| Net assets: | ||||||||
| Beginning of period | 5,866,575,867 | 217,373,776 | ||||||
| End of period (includes undistributed net investment income of $(8,304,299) and $(486,292), respectively) | $ | 6,116,621,577 | $ | 5,866,575,867 | ||||
Notes to Financial Statements
February 29, 2012
Unaudited
NOTE 1—Significant Accounting Policies
Invesco Van Kampen American Franchise Fund (the “Fund”), is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (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 twelve 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 capital appreciation.
The Fund currently consists of six different classes of shares: Class A, Class B, Class C, Class R, Class Y and Institutional Class. 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 and Institutional Class 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. 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. 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 conversion date will be subject to a CDSC.
10 Invesco Van Kampen American Franchise Fund
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 bonds) 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 ask 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 ask prices. For purposes of determining net asset value 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 bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. | ||
| Foreign securities (including foreign exchange contracts) 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 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 trade is not the current value as of the close of the NYSE. Foreign securities 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 are 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/ask 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. | ||
| 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. | ||
| B. | 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 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 Statement of Changes in Net Assets, or the net investment income per share and 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. | ||
| C. | 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. |
11 Invesco Van Kampen American Franchise Fund
| D. | Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. | |
| E. | Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of 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 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. | ||
| F. | 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 the Institutional Class are charged to such 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. Prior to the Reorganization, incremental transfer agency fees which are unique to each class of shares of the Acquired Fund were charged to the operations of such class. | |
| G. | 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. | |
| H. | 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 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. | |
| I. | 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. | |
| 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. | ||
| J. | Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into 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. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of 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 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. |
12 Invesco Van Kampen American Franchise Fund
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 pays 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 $250 million | 0.67% | |||
| Next $500 million | 0.645% | |||
| Next $550 million | 0.62% | |||
| Next $3.45 billion | 0.60% | |||
| Next $250 million | 0.595% | |||
| Next $2.25 billion | 0.57% | |||
| Next $2.5 billion | 0.545% | |||
| Over $10 billion | 0.52% | |||
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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may 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 Sub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2013, 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 and Institutional Class shares to 1.05%, 1.22%, 1.80%, 1.30%, 0.80% and 0.80%, respectively, of average daily net assets. 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 the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2013. To the extent that the annualized expense ratio does not exceed the expense limitation, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.
Further, the Adviser has contractually agreed, through at least June 30, 2012, 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 six months ended February 29, 2012, the Adviser waived advisory fees of $118,263 and reimbursed class level expenses of $3,794,347, $273,802, $207,813, $14,298 and $84,642 of Class A, Class B, Class C, Class R and Class Y shares, respectively.
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 six months ended February 29, 2012, 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 are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 29, 2012, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.
Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A, Class B, Class C and Class R shares to compensate IDI for the sale, distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will incur annual fees of up to 0.25% of Class A average daily net assets, up to 1.00% each of Class B and Class C average daily net assets and up to 0.50% of Class R average daily net assets.
With respect to Class B and Class C shares, the Fund is authorized to reimburse in future years any distribution related expenses that exceed the maximum annual reimbursement rate for such class, so long as such reimbursement does not cause the Fund to exceed the Class B and Class C maximum annual reimbursement rate, respectively. With respect to Class A shares, distribution related expenses that exceed the maximum annual reimbursement rate for such class are not carried forward to future years and the Fund will not reimburse IDI for any such expenses.
IDI has contractually agreed to limit Rule 12b-1 plan fees on Class B shares to 0.42% of average annual net assets through at least June 30, 2013.
For the six months ended February 29, 2012, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees. IDI did not waive Rule 12b-1 plan fees under this limitation during the period.
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 six months ended February 29, 2012, IDI advised the Fund that IDI retained $167,193 in front-end sales commissions from the sale of Class A shares and $482, $170,958 and $12,506 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.
13 Invesco Van Kampen American Franchise 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 February 29, 2012. 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.
During the six months ended February 29, 2012, there were no significant transfers between investment levels.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Equity Securities | $ | 6,079,753,236 | $ | 44,649,038 | $ | — | $ | 6,124,402,274 | ||||||||
NOTE 4—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 are eligible to participate in a retirement plan that provides 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.
During the six months ended February 29, 2012, the Fund paid legal fees of $468 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.
NOTE 5—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 six months ended February 29, 2012, the Fund engaged in securities sales of $3,051,672, which resulted in net realized gains (losses) of $(861,599).
NOTE 6—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended February 29, 2012, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $13,857.
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.
14 Invesco Van Kampen American Franchise Fund
NOTE 8—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
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. The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, 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. Additionally, post-enactment capital loss carryovers 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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2011, which expires as follows:
| Capital Loss | ||||
| Expiration | Carryforward* | |||
| August 31, 2016 | $ | 436,460,438 | ||
| August 31, 2018 | 110,503,496 | |||
| Total capital loss carryforward | $ | 546,963,934 | ||
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. To the extent that unrealized gains as of May 23, 2011, the date of reorganization of Invesco Large Cap Growth Fund and Invesco Van Kampen Capital Growth Fund and Invesco Van Kampen Enterprises into the Fund and realized on securities held in each fund at such date of reorganization, the capital loss carryforward may be further limited for up to five years from the date of the reorganization. |
NOTE 9—Investment Securities
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 six months ended February 29, 2012 was $2,277,742,296 and $2,386,531,194, respectively. Cost of investments 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 Investment Securities on a Tax Basis | ||||
| Aggregate unrealized appreciation of investment securities | $ | 1,355,270,587 | ||
| Aggregate unrealized (depreciation) of investment securities | (71,114,634 | ) | ||
| Net unrealized appreciation of investment securities | $ | 1,284,155,953 | ||
| Cost of investments for tax purposes is $4,840,246,321. | ||||
15 Invesco Van Kampen American Franchise Fund
NOTE 10—Share Information
| Summary of Share Activity | ||||||||||||||||
| Six months ended | Year ended | |||||||||||||||
| February 29, 2012(a) | August 31, 2011 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Sold: | ||||||||||||||||
| Class A | 7,391,185 | $ | 85,493,993 | 15,799,630 | $ | 194,566,281 | ||||||||||
| Class B | 132,581 | 1,507,088 | 715,055 | 8,527,696 | ||||||||||||
| Class C | 952,558 | 10,727,905 | 2,491,661 | 30,223,787 | ||||||||||||
| Class R | 222,584 | 2,527,945 | 128,847 | 1,596,002 | ||||||||||||
| Class Y | 1,804,239 | 21,230,371 | 4,844,371 | 60,928,311 | ||||||||||||
| Institutional Class | 9,882,363 | 111,710,883 | 1,771,287 | 22,307,656 | ||||||||||||
| Issued as reinvestment of dividends: | ||||||||||||||||
| Class A | 4,169,084 | 47,194,029 | — | — | ||||||||||||
| Class B | 323,077 | 3,579,695 | — | — | ||||||||||||
| Class C | 249,426 | 2,768,627 | — | — | ||||||||||||
| Class R | 18,142 | 205,184 | — | — | ||||||||||||
| Class Y | 98,939 | 1,126,921 | — | — | ||||||||||||
| Institutional Class | 208,154 | 2,364,625 | — | — | ||||||||||||
Issued in connection with acquisitions:(b) | ||||||||||||||||
| Class A | — | — | 407,652,673 | 5,222,483,910 | ||||||||||||
| Class B | — | — | 34,111,525 | 427,773,604 | ||||||||||||
| Class C | — | — | 20,203,402 | 254,475,232 | ||||||||||||
| Class R | — | — | 1,514,559 | 19,398,869 | ||||||||||||
| Class Y | — | — | 7,427,093 | 95,663,760 | ||||||||||||
| Institutional Class | — | — | 16,008,613 | 205,368,045 | ||||||||||||
| Automatic conversion of Class B shares to Class A shares: | ||||||||||||||||
| Class A | 3,334,109 | 38,876,867 | 2,508,702 | 30,977,368 | ||||||||||||
| Class B | (3,246,429 | ) | (38,876,867 | ) | (2,563,046 | ) | (30,977,368 | ) | ||||||||
| Reacquired: | ||||||||||||||||
| Class A | (33,632,271 | ) | (389,884,073 | ) | (25,492,374 | ) | (311,418,707 | ) | ||||||||
| Class B | (2,492,496 | ) | (26,418,519 | ) | (2,034,031 | ) | (24,321,777 | ) | ||||||||
| Class C | (2,236,101 | ) | (25,560,588 | ) | (1,944,263 | ) | (23,215,024 | ) | ||||||||
| Class R | (180,389 | ) | (2,095,623 | ) | (131,592 | ) | (1,627,614 | ) | ||||||||
| Class Y | (3,482,117 | ) | (40,083,235 | ) | (2,560,884 | ) | (31,947,376 | ) | ||||||||
| Institutional Class | (2,204,167 | ) | (25,909,714 | ) | (1,000,018 | ) | (12,462,236 | ) | ||||||||
| Net increase (decrease) in share activity | (18,687,529 | ) | $ | (219,514,486 | ) | 479,451,210 | $ | 6,138,320,419 | ||||||||
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 24% 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. | |
| (b) | As of the open of business on May 23, 2011, the Fund acquired all the net assets of Invesco Large Cap Growth Fund, Invesco Van Kampen Capital Growth Fund and Invesco Van Kampen Enterprise Fund pursuant to a plan of reorganization approved by the Trustees of the Fund on November 10, 2010 and by the shareholders of Invesco Large Cap Growth Fund, Invesco Van Kampen Capital Growth Fund and Invesco Van Kampen Enterprise Fund on April 14, 2011. The acquisition was accomplished by a tax-free exchange of 486,917,865 shares of the Fund for 106,999,397, 277,821,622 and 50,537,139 shares outstanding of Invesco Large Cap Growth Fund, Invesco Van Kampen Capital Growth Fund and Invesco Van Kampen Enterprise Fund, respectively, as of the close of business on May 20, 2011. Each class of Invesco Large Cap Growth Fund, Invesco Van Kampen Capital Growth Fund and Invesco Van Kampen Enterprise Fund was exchanged for the like class of shares of the Fund based on the relative net asset value of Invesco Large Cap Growth Fund, Invesco Van Kampen Capital Growth Fund and Invesco Van Kampen Enterprise Fund to the net asset value of the Fund on the close of business, May 20, 2011. Invesco Large Cap Growth Fund, Invesco Van Kampen Capital Growth Fund and Invesco Van Kampen Enterprise Fund net assets at that date of $1,350,805,388, $3,945,324,161 and $929,033,871, respectively, including $1,276,200,577 of unrealized appreciation, was combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $392,208,046. The net assets of the Fund immediately following the acquisition were $6,617,371,465. |
16 Invesco Van Kampen American Franchise Fund
NOTE 11—Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Ratio of | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net gains | expenses | expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (losses) on | to average | to average net | Ratio of net | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net asset | Net | securities | Dividends | Distributions | net assets | assets without | investment | |||||||||||||||||||||||||||||||||||||||||||||||||
| value, | investment | (both | Total from | from net | from net | Net asset | Net assets, | with fee waivers | fee waivers | income (loss) | ||||||||||||||||||||||||||||||||||||||||||||||
| beginning | income | realized and | investment | investment | realized | Total | value, end | Total | end of period | and/or expenses | and/or expenses | to average | Portfolio | |||||||||||||||||||||||||||||||||||||||||||
| of period | (loss)(a) | unrealized) | operations | income | gains | distributions | of period | return | (000s omitted) | absorbed | absorbed | net assets | turnover(b) | |||||||||||||||||||||||||||||||||||||||||||
| Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | $ | 11.72 | $ | (0.02 | ) | $ | 1.11 | $ | 1.09 | $ | — | $ | (0.12 | ) | $ | (0.12 | ) | $ | 12.69 | 9.45 | %(c) | $ | 5,061,687 | 1.04 | %(d) | 1.21 | %(d) | (0.26 | )%(d) | 41 | % | |||||||||||||||||||||||||
| Year ended 08/31/11 | 9.79 | (0.05 | ) | 1.98 | 1.93 | — | — | — | 11.72 | 19.71 | (c) | 4,894,163 | 1.06 | 1.17 | (0.43 | ) | 179 | |||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 8.87 | 0.01 | 1.03 | 1.04 | (0.12 | ) | — | (0.12 | ) | 9.79 | 11.75 | (c) | 168,731 | 1.30 | 1.30 | 0.11 | 101 | |||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 10.23 | 0.13 | (1.33 | ) | (1.20 | ) | (0.16 | ) | — | (0.16 | ) | 8.87 | (11.40 | )(e) | 200,127 | 1.35 | 1.41 | 1.60 | 105 | |||||||||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 12.19 | 0.13 | (1.20 | ) | (1.07 | ) | (0.31 | ) | (0.58 | ) | (0.89 | ) | 10.23 | (9.31 | )(e) | 241,026 | 1.24 | 1.24 | 1.22 | 18 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 11.41 | 0.36 | 0.52 | 0.88 | (0.10 | ) | — | (0.10 | ) | 12.19 | 7.75 | (e) | 394,013 | 1.19 | 1.19 | 2.93 | 39 | |||||||||||||||||||||||||||||||||||||||
| Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 11.47 | (0.01 | ) | 1.07 | 1.06 | — | (0.12 | ) | (0.12 | ) | 12.41 | 9.49 | (c)(f) | 338,397 | 1.04 | (d)(f) | 1.21 | (d)(f) | (0.26 | )(d)(f) | 41 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 9.64 | (0.08 | ) | 1.91 | 1.83 | — | — | — | 11.47 | 18.98 | (c)(f) | 373,157 | 1.28 | (f) | 1.65 | (f) | (0.64 | )(f) | 179 | |||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 8.75 | (0.06 | ) | 1.01 | 0.95 | (0.06 | ) | — | (0.06 | ) | 9.64 | 10.89 | (c) | 22,332 | 2.05 | 2.05 | (0.64 | ) | 101 | |||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 10.08 | 0.07 | (1.31 | ) | (1.24 | ) | (0.09 | ) | — | (0.09 | ) | 8.75 | (12.09 | )(g) | 23,466 | 2.10 | 2.16 | 0.86 | 105 | |||||||||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 12.03 | 0.05 | (1.18 | ) | (1.13 | ) | (0.24 | ) | (0.58 | ) | (0.82 | ) | 10.08 | (9.98 | )(g) | 28,330 | 2.00 | 2.00 | 0.45 | 18 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 11.30 | 0.26 | 0.53 | 0.79 | (0.06 | ) | — | (0.06 | ) | 12.03 | 7.01 | (g) | 38,428 | 1.95 | 1.95 | 2.15 | 39 | |||||||||||||||||||||||||||||||||||||||
| Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 11.51 | (0.06 | ) | 1.08 | 1.02 | — | (0.12 | ) | (0.12 | ) | 12.41 | 9.01 | (c) | 275,131 | 1.79 | (d) | 1.96 | (d) | (1.01 | )(d) | 41 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 9.68 | (0.11 | ) | 1.94 | 1.83 | — | — | — | 11.51 | 18.90 | (c)(h) | 266,990 | 1.60 | (h) | 1.71 | (h) | (0.97 | )(h) | 179 | |||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 8.76 | (0.05 | ) | 1.03 | 0.98 | (0.06 | ) | — | (0.06 | ) | 9.68 | 11.14 | (c)(h) | 23,718 | 1.93 | (h) | 1.93 | (h) | (0.52 | )(h) | 101 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 10.10 | 0.06 | (1.30 | ) | (1.24 | ) | (0.10 | ) | — | (0.10 | ) | 8.76 | (12.11 | )(i) | 25,063 | 2.16 | 2.22 | 0.78 | 105 | |||||||||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 12.02 | 0.06 | (1.18 | ) | (1.12 | ) | (0.22 | ) | (0.58 | ) | (0.80 | ) | 10.10 | (9.89 | )(i)(j) | 26,600 | 1.92 | (j) | 1.92 | (j) | 0.55 | (j) | 18 | |||||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 11.30 | 0.26 | 0.53 | 0.79 | (0.07 | ) | — | (0.07 | ) | 12.02 | 6.99 | (i) | 46,382 | 1.95 | 1.95 | 2.15 | 39 | |||||||||||||||||||||||||||||||||||||||
| Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 11.71 | (0.03 | ) | 1.10 | 1.07 | — | (0.12 | ) | (0.12 | ) | 12.66 | 9.29 | (c) | 19,903 | 1.29 | (d) | 1.46 | (d) | (0.51 | )(d) | 41 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/11(k) | 12.81 | (0.02 | ) | (1.08 | ) | (1.10 | ) | — | — | — | 11.71 | (8.59 | ) | 17,698 | 1.30 | (l) | 1.42 | (l) | (0.66 | )(l) | 179 | |||||||||||||||||||||||||||||||||||
| Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 11.78 | (0.00 | ) | 1.11 | 1.11 | — | (0.12 | ) | (0.12 | ) | 12.77 | 9.57 | (c) | 107,200 | 0.79 | (d) | 0.96 | (d) | (0.01 | )(d) | 41 | |||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 9.83 | (0.02 | ) | 1.97 | 1.95 | — | — | — | 11.78 | 19.84 | (c) | 117,471 | 0.81 | 0.92 | (0.18 | ) | 179 | |||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/10 | 8.91 | 0.04 | 1.02 | 1.06 | (0.14 | ) | — | (0.14 | ) | 9.83 | 11.95 | (c) | 2,592 | 1.05 | 1.05 | 0.35 | 101 | |||||||||||||||||||||||||||||||||||||||
| Year ended 08/31/09 | 10.27 | 0.14 | (1.31 | ) | (1.17 | ) | (0.19 | ) | — | (0.19 | ) | 8.91 | (11.07 | )(m) | 1,451 | 1.10 | 1.18 | 1.77 | 105 | |||||||||||||||||||||||||||||||||||||
| Year ended 08/31/08 | 12.23 | 0.18 | (1.22 | ) | (1.04 | ) | (0.34 | ) | (0.58 | ) | (0.92 | ) | 10.27 | (9.05 | )(m) | 108 | 1.00 | 1.00 | 1.65 | 18 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/07 | 11.44 | 0.42 | 0.48 | 0.90 | (0.11 | ) | — | (0.11 | ) | 12.23 | 7.93 | (m) | 1,635 | 0.93 | 0.93 | 3.42 | 39 | |||||||||||||||||||||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 11.75 | 0.01 | 1.10 | 1.11 | — | (0.12 | ) | (0.12 | ) | 12.74 | 9.60 | (c) | 314,303 | 0.69 | (d) | 0.69 | (d) | 0.09 | (d) | 41 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11(k) | 12.07 | (0.00 | ) | (0.32 | ) | (0.32 | ) | — | — | — | 11.75 | (2.65 | )(c) | 197,097 | 0.66 | (l) | 0.66 | (l) | (0.03 | )(l) | 179 | |||||||||||||||||||||||||||||||||||
| (a) | Calculated using average shares outstanding. | |
| (b) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. | |
| (c) | 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. | |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $4,725,184, $340,971, $258,794, $17,806, $105,407 and $229,318 for Class A, Class B, Class C, Class R, Class Y and Institutional Class shares, respectively. | |
| (e) | Assumes reinvestment of all distributions for the period and does not include payment of the maximum sales charge of 5.75% or contingent deferred sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be imposed on certain redemptions made within eighteen months of purchase. If the sales charges were included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 0.25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
| (f) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.25% and 0.47% for the six months ended February 29, 2012 and the year ended August 31, 2011, respectively. | |
| (g) | Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 5%, charged on certain redemptions made within one year of purchase and declining to 0% after the fifth year. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
| (h) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.79% and 0.88% for the periods ended August 31, 2011 and 2010, respectively. | |
| (i) | Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 1%, charged on certain redemptions made within one year of purchase. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
| (j) | The Total return, Ratio of expenses to average net assets and Ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of less than 1%. | |
| (k) | Commencement date of May 23, 2011 for Class R and December 22, 2010 for Institutional Class. | |
| (l) | Annualized. | |
| (m) | Assumes reinvestment of all distributions for the period. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption on Fund shares. |
17 Invesco Van Kampen American Franchise 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, and redemption fees, 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 September 1, 2011 through February 29, 2012.
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, contingent deferred sales charges on redemptions, and redemption fees, 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.
| HYPOTHETICAL | ||||||||||||||||||||||||||||||
| ACTUAL | (5% annual return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Ending | Expenses | Annualized | |||||||||||||||||||||||||
| Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||||||||||||||||||||
| Class | (09/01/11) | (02/29/12)1 | Period2 | (02/29/12) | Period2 | Ratio | ||||||||||||||||||||||||
| A | $ | 1,000.00 | $ | 1,094.50 | $ | 5.42 | $ | 1,019.69 | $ | 5.22 | 1.04 | % | ||||||||||||||||||
| B | 1,000.00 | 1,094.90 | 5.42 | 1,019.69 | 5.22 | 1.04 | ||||||||||||||||||||||||
| C | 1,000.00 | 1,090.10 | 9.30 | 1,015.96 | 8.97 | 1.79 | ||||||||||||||||||||||||
| R | 1,000.00 | 1,092.90 | 6.71 | 1,018.45 | 6.47 | 1.29 | ||||||||||||||||||||||||
| Y | 1,000.00 | 1,095.70 | 4.12 | 1,020.93 | 3.97 | 0.79 | ||||||||||||||||||||||||
| Institutional | 1,000.00 | 1,096.00 | 3.60 | 1,021.43 | 3.47 | 0.69 | ||||||||||||||||||||||||
| 1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2011 through February 29, 2012, 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 182/366 to reflect the most recent fiscal half year. |
18 Invesco Van Kampen American Franchise Fund
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Invesco privacy policy
You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.
Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.
Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.
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 811-09913 and 333-36074.
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 12 months ended June 30, 2011, 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 U.S. 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.
| VK-AMFR-SAR-1 | Invesco Distributors, Inc. |
Invesco Van Kampen Equity and Income Fund
Semiannual Report to Shareholders § February 29, 2012
Semiannual Report to Shareholders § February 29, 2012
Nasdaq:
A: ACEIX § B: ACEQX § C: ACERX § R: ACESX § Y: ACETX § Institutional: ACEKX
A: ACEIX § B: ACEQX § C: ACERX § R: ACESX § Y: ACETX § Institutional: ACEKX
| 2 | Fund Performance | |
| 4 | Letters to Shareholders | |
| 5 | Schedule of Investments | |
| 16 | Financial Statements | |
| 18 | Notes to Financial Statements | |
| 26 | Financial Highlights | |
| 27 | Fund Expenses | |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
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 | ||||||
Fund Performance
Performance summary
Fund vs. Indexes
Cumulative total returns, 8/31/11 to 2/29/12, 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 | 8.60 | % | ||
| Class B Shares | 8.56 | |||
| Class C Shares | 8.21 | |||
| Class R Shares | 8.44 | |||
| Class Y Shares | 8.74 | |||
| Institutional Class Shares | 8.83 | |||
Russell 1000 Value Index▼ (Broad Market Index) | 12.84 | |||
Barclays U.S. Government/Credit Index▼ (Style-Specific Index) | 3.20 | |||
Source(s): ▼Lipper Inc.
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 Barclays U.S. Government/Credit Index includes treasuries and agencies that represent the government portion of the index, and includes publicly issued US corporate and foreign debentures and secured notes that meet specified maturity, liquidity, and quality requirements to represent the credit interests.
The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
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.
2 Invesco Van Kampen Equity and Income Fund
Average Annual Total Returns
As of 2/29/12, including maximum applicable sales charges
| Class A Shares | ||||||||
| Inception (8/3/60) | 10.10 | % | ||||||
| 10 | Years | 4.87 | ||||||
| 5 | Years | 1.32 | ||||||
| 1 | Year | -6.33 | ||||||
| Class B Shares | ||||||||
| Inception (5/1/92) | 9.22 | % | ||||||
| 10 | Years | 5.03 | ||||||
| 5 | Years | 2.03 | ||||||
| 1 | Year | -5.63 | ||||||
| Class C Shares | ||||||||
| Inception (7/6/93) | 8.47 | % | ||||||
| 10 | Years | 4.70 | ||||||
| 5 | Years | 1.75 | ||||||
| 1 | Year | -2.47 | ||||||
| Class R Shares | ||||||||
| Inception (10/1/02) | 7.03 | % | ||||||
| 5 | Years | 2.24 | ||||||
| 1 | Year | -0.96 | ||||||
| Class Y Shares | ||||||||
| Inception (12/22/04) | 4.78 | % | ||||||
| 5 | Years | 2.76 | ||||||
| 1 | Year | -0.46 | ||||||
| Institutional Class Shares | ||||||||
| 10 | Years | 5.55 | % | |||||
| 5 | Years | 2.63 | ||||||
| 1 | Year | -0.39 | ||||||
Effective June 1, 2010, Class A, Class B, Class C, Class I and Class R shares of the predecessor fund, Van Kampen Equity and Income Fund, advised by Van Kampen Asset Management were reorganized into Class A, Class B, Class C, Class Y and Class R shares, respectively, of Invesco Van Kampen Equity and Income Fund. Returns shown above for Class A, Class B, Class C, Class R and Class Y shares are blended returns of the predecessor fund and Invesco Van Kampen Equity and Income Fund. Share class returns will differ from the predecessor fund because of different expenses.
Institutional Class shares incepted on June 1, 2010. Performance shown prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.
Average Annual Total Returns
As of 12/31/11, the most recent calendar quarter-end, including maximum applicable sales charges
| Class A Shares | ||||||||
| Inception (8/3/60) | 10.02 | % | ||||||
| 10 | Years | 4.34 | ||||||
| 5 | Years | 0.13 | ||||||
| 1 | Year | -6.67 | ||||||
| Class B Shares | ||||||||
| Inception (5/1/92) | 8.99 | % | ||||||
| 10 | Years | 4.48 | ||||||
| 5 | Years | 0.76 | ||||||
| 1 | Year | -6.22 | ||||||
| Class C Shares | ||||||||
| Inception (7/6/93) | 8.22 | % | ||||||
| 10 | Years | 4.14 | ||||||
| 5 | Years | 0.51 | ||||||
| 1 | Year | -2.96 | ||||||
| Class R Shares | ||||||||
| Inception (10/1/02) | 6.50 | % | ||||||
| 5 | Years | 0.99 | ||||||
| 1 | Year | -1.57 | ||||||
| Class Y Shares | ||||||||
| Inception (12/22/04) | 4.04 | % | ||||||
| 5 | Years | 1.52 | ||||||
| 1 | Year | -0.97 | ||||||
| Institutional Class Shares | ||||||||
| 10 | Years | 4.99 | % | |||||
| 5 | Years | 1.40 | ||||||
| 1 | Year | -0.78 | ||||||
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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. 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 R, Class Y and Institutional Class shares was 0.81%, 1.56%,
1.53%, 1.06%, 0.56% and 0.39%, 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. For shares purchased prior to June 1, 2010, the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the sixth year. For shares purchased on or after June 1, 2010, the CDSC on Class B shares declines from 5% 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 Y and Institutional Class 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.
Had the adviser not waived fees and/or reimbursed expenses for Class B shares, performance would have been lower.
3 Invesco Van Kampen Equity and Income Fund
Letters to Shareholders
Bruce Crockett
Dear Fellow Shareholders:
Throughout 2011, we experienced volatile, challenging markets that presented both opportunities and risks for investors. Based on everything I’ve read, this year could potentially be just as interesting, with continued economic uncertainty and market volatility.
With this in mind, you’ll want to stay informed regarding the markets and keep up to date with news that affects your investment portfolio. Invesco’s website, invesco.com/us, provides a wealth of information about your investments and news regarding global markets.
Regardless of economic conditions and market trends, the Invesco Funds Board of Trustees remains committed to putting your interests first. Throughout 2011, we worked to manage costs, and this remains a continuing focus of your Board. We will continue to oversee the funds with the strong sense of responsibility for your money and your continued trust that we’ve always maintained.
I would like to close by thanking Bob Baker for his distinguished 30-year service with the Invesco Funds Board and his unflagging commitment to our funds’ shareholders. As always, I encourage you to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving you in 2012.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Independent Chair
Invesco Funds Board of Trustees
Philip Taylor
Dear Shareholders:
This report provides important information about your Fund, including its short- and long-term performance. Also, this report includes a listing of investments held by your Fund at the close of the reporting period.
Investors are likely to confront both opportunities and challenges in 2012. As we saw in 2011, market sentiment can change suddenly and dramatically – and certainly without advance notice – depending on economic developments and world events. Similarly, your own situation, needs and goals can change, requiring adjustments in your financial strategy.
In addition to meeting with your financial adviser regularly to discuss your individual situation, you also may find it helpful to stay abreast of market trends and developments. Doing so may provide reassurance in times of economic uncertainty and market volatility such as we saw last year and may see again this year.
Invesco can help you stay informed about your investments and market trends. On our website, invesco.com/us, we provide timely market updates and commentary from many of our portfolio managers and other investment professionals. Also on our website, you can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer at invesco.com/us.
If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.
All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.
Sincerely,
Philip Taylor
Senior Managing Director, Invesco Ltd.
Senior Managing Director, Invesco Ltd.
4 Invesco Van Kampen Equity and Income Fund
Schedule of Investments(a)
February 29, 2012
(Unaudited)
| Shares | Value | |||||||
| Common Stocks & Other Equity Interests–62.84% | ||||||||
| Agricultural Products–0.71% | ||||||||
| Archer-Daniels-Midland Co. | 2,499,514 | $ | 77,984,837 | |||||
| Asset Management & Custody Banks–1.13% | ||||||||
| Northern Trust Corp. | 1,334,689 | 59,273,539 | ||||||
| State Street Corp. | 1,528,789 | 64,560,759 | ||||||
| 123,834,298 | ||||||||
| Cable & Satellite–2.81% | ||||||||
| Comcast Corp.–Class A | 6,096,580 | 179,117,521 | ||||||
| Time Warner Cable Inc. | 1,623,754 | 128,828,642 | ||||||
| 307,946,163 | ||||||||
| Computer Hardware–1.43% | ||||||||
Dell Inc.(b) | 4,125,456 | 71,370,389 | ||||||
| Hewlett-Packard Co. | 3,398,092 | 86,005,708 | ||||||
| 157,376,097 | ||||||||
| Data Processing & Outsourced Services–0.60% | ||||||||
| Western Union Co. (The) | 3,754,860 | 65,597,404 | ||||||
| Diversified Banks–1.75% | ||||||||
| Comerica Inc. | 1,661,067 | 49,317,079 | ||||||
| U.S. Bancorp | 1,960,640 | 57,642,816 | ||||||
| Wells Fargo & Co. | 2,725,860 | 85,292,160 | ||||||
| 192,252,055 | ||||||||
| Diversified Chemicals–0.74% | ||||||||
| PPG Industries, Inc. | 885,065 | 80,762,181 | ||||||
| Diversified Support Services–0.54% | ||||||||
| Cintas Corp. | 1,529,893 | 58,992,674 | ||||||
| Drug Retail–0.63% | ||||||||
| Walgreen Co. | 2,099,865 | 69,631,523 | ||||||
| Electric Utilities–2.27% | ||||||||
| American Electric Power Co., Inc. | 2,225,560 | 83,703,312 | ||||||
| Edison International | 1,486,468 | 62,238,415 | ||||||
| Entergy Corp. | 594,317 | 39,599,342 | ||||||
| FirstEnergy Corp. | 1,437,480 | 63,665,989 | ||||||
| 249,207,058 | ||||||||
| Food Distributors–0.89% | ||||||||
| Sysco Corp. | 3,336,654 | 98,164,361 | ||||||
| Health Care Distributors–0.53% | ||||||||
| Cardinal Health, Inc. | 1,391,539 | 57,818,445 | ||||||
| Health Care Equipment–1.04% | ||||||||
| Medtronic, Inc. | 3,007,701 | 114,653,562 | ||||||
| Home Improvement Retail–0.86% | ||||||||
| Home Depot, Inc. (The) | 1,975,358 | 93,967,780 | ||||||
| Hotels, Resorts & Cruise Lines–0.58% | ||||||||
| Carnival Corp. | 2,102,452 | 63,683,271 | ||||||
| Household Products–2.05% | ||||||||
Energizer Holdings, Inc.(b) | 522,946 | 39,979,222 | ||||||
| Procter & Gamble Co. (The) | 2,732,701 | 184,511,971 | ||||||
| 224,491,193 | ||||||||
| Industrial Conglomerates–4.52% | ||||||||
| General Electric Co. | 17,329,649 | 330,129,813 | ||||||
| Tyco International Ltd. | 3,206,317 | 166,151,347 | ||||||
| 496,281,160 | ||||||||
| Industrial Machinery–0.93% | ||||||||
| Ingersoll-Rand PLC (Ireland) | 2,572,938 | 102,608,767 | ||||||
| Insurance Brokers–1.83% | ||||||||
| Marsh & McLennan Cos., Inc. | 6,423,210 | 200,404,152 | ||||||
| Integrated Oil & Gas–4.18% | ||||||||
| ConocoPhillips | 581,750 | 44,532,963 | ||||||
| Exxon Mobil Corp. | 1,149,904 | 99,466,696 | ||||||
| Hess Corp. | 1,420,773 | 92,236,583 | ||||||
| Occidental Petroleum Corp. | 792,356 | 82,698,196 | ||||||
| Royal Dutch Shell PLC–ADR (United Kingdom) | 1,919,825 | 140,320,009 | ||||||
| 459,254,447 | ||||||||
| Integrated Telecommunication Services–0.84% | ||||||||
| Verizon Communications Inc. | 2,418,346 | 92,163,166 | ||||||
| Internet Software & Services–1.82% | ||||||||
eBay Inc.(b) | 5,578,073 | 199,360,329 | ||||||
| Investment Banking & Brokerage–0.69% | ||||||||
| Charles Schwab Corp. (The) | 5,497,150 | 76,300,442 | ||||||
| Investment Companies–Exchange Traded Funds–0.26% | ||||||||
| SPDR S&P Homebuilders ETF | 1,400,900 | 28,228,135 | ||||||
| IT Consulting & Other Services–0.71% | ||||||||
Amdocs Ltd.(b) | 2,541,784 | 77,956,515 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 Invesco Van Kampen Equity and Income Fund
| Shares | Value | |||||||
| Managed Health Care–1.64% | ||||||||
| Cigna Corp. | 953,228 | $ | 42,046,887 | |||||
| UnitedHealth Group Inc. | 2,481,226 | 138,328,350 | ||||||
| 180,375,237 | ||||||||
| Movies & Entertainment–2.51% | ||||||||
| Time Warner Inc. | 3,591,369 | 133,634,841 | ||||||
| Viacom Inc.–Class B | 2,987,281 | 142,254,321 | ||||||
| 275,889,162 | ||||||||
| Oil & Gas Equipment & Services–1.38% | ||||||||
| Baker Hughes Inc. | 1,164,366 | 58,544,322 | ||||||
Cameron International Corp.(b) | 823,049 | 45,852,060 | ||||||
| Schlumberger Ltd. | 613,331 | 47,600,619 | ||||||
| 151,997,001 | ||||||||
| Oil & Gas Exploration & Production–2.36% | ||||||||
| Anadarko Petroleum Corp. | 2,108,417 | 177,360,038 | ||||||
| Devon Energy Corp. | 962,328 | 70,548,266 | ||||||
WPX Energy Inc.(b) | 631,362 | 11,465,534 | ||||||
| 259,373,838 | ||||||||
| Oil & Gas Storage & Transportation–0.52% | ||||||||
| Williams Cos., Inc. (The) | 1,894,087 | 56,595,320 | ||||||
| Other Diversified Financial Services–4.29% | ||||||||
| Citigroup Inc. | 3,878,137 | 129,219,525 | ||||||
| JPMorgan Chase & Co. | 8,696,243 | 341,240,575 | ||||||
| 470,460,100 | ||||||||
| Packaged Foods & Meats–1.61% | ||||||||
| Kraft Foods Inc.–Class A | 1,969,714 | 74,987,012 | ||||||
| Unilever N.V.–New York Shares (Netherlands) | 3,054,144 | 101,733,537 | ||||||
| 176,720,549 | ||||||||
| Personal Products–1.07% | ||||||||
| Avon Products, Inc. | 6,266,708 | 117,124,772 | ||||||
| Pharmaceuticals–4.75% | ||||||||
| Abbott Laboratories | 522,327 | 29,568,932 | ||||||
| Bristol-Myers Squibb Co. | 3,709,037 | 119,319,720 | ||||||
| Eli Lilly & Co. | 558,150 | 21,901,806 | ||||||
Hospira, Inc.(b) | 425,475 | 15,155,420 | ||||||
| Merck & Co., Inc. | 3,536,585 | 134,991,449 | ||||||
| Pfizer Inc. | 9,496,341 | 200,372,795 | ||||||
| 521,310,122 | ||||||||
| Property & Casualty Insurance–0.50% | ||||||||
| Chubb Corp. (The) | 804,377 | 54,665,461 | ||||||
| Regional Banks–2.40% | ||||||||
| BB&T Corp. | 2,360,045 | 69,031,316 | ||||||
| Fifth Third Bancorp | 4,045,596 | 55,060,562 | ||||||
| PNC Financial Services Group, Inc. | 2,337,988 | 139,157,046 | ||||||
| 263,248,924 | ||||||||
| Semiconductor Equipment–0.58% | ||||||||
| Applied Materials, Inc. | 5,178,777 | 63,388,230 | ||||||
| Semiconductors–0.62% | ||||||||
| Intel Corp. | 2,514,879 | 67,599,948 | ||||||
| Soft Drinks–1.33% | ||||||||
Coca-Cola Co. (The) | 1,037,398 | 72,472,624 | ||||||
| PepsiCo, Inc. | 1,174,328 | 73,912,205 | ||||||
| 146,384,829 | ||||||||
| Systems Software–1.73% | ||||||||
| Microsoft Corp. | 5,969,785 | 189,480,976 | ||||||
| Wireless Telecommunication Services–1.21% | ||||||||
| Vodafone Group PLC–ADR (United Kingdom) | 4,890,005 | 132,470,235 | ||||||
| Total Common Stocks & Other Equity Interests (Cost $6,209,411,363) | 6,896,004,719 | |||||||
| Principal | ||||||||
| Amount | ||||||||
| U.S. Dollar Denominated Bonds and Notes–21.12% | ||||||||
| Advertising–0.25% | ||||||||
| Interpublic Group of Cos., Inc. (The), | ||||||||
Sr. Unsec. Conv. Global Notes, 4.25%, 03/15/23(c) | $ | 6,673,000 | 6,731,389 | |||||
4.75%, 03/15/23(c) | 14,400,000 | 16,704,000 | ||||||
| WPP Finance (United Kingdom), Sr. Unsec. Gtd. Global Notes, 8.00%, 09/15/14 | 3,225,000 | 3,724,652 | ||||||
| 27,160,041 | ||||||||
| Aerospace & Defense–0.03% | ||||||||
| Raytheon Co., Sr. Unsec. Notes, 1.63%, 10/15/15 | 2,910,000 | 2,975,554 | ||||||
| Agricultural Products–0.06% | ||||||||
| Corn Products International, Inc., | ||||||||
Sr. Unsec. Notes, 4.63%, 11/01/20 | 1,875,000 | 1,992,917 | ||||||
| 6.63%, 04/15/37 | 3,940,000 | 4,598,921 | ||||||
| 6,591,838 | ||||||||
| Airlines–0.08% | ||||||||
Continental Airlines, Inc.–Series 2010-1, Class A, Sec. Pass Through Ctfs., 4.75%, 01/12/21 | 4,751,679 | 5,018,961 | ||||||
Delta Air Lines Pass Through Trust–Series 2010-1, Class A, Sec. Pass Through Ctfs., 6.20%, 07/02/18 | 2,967,638 | 3,242,144 | ||||||
| 8,261,105 | ||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Van Kampen Equity and Income Fund
| Principal | ||||||||
| Amount | Value | |||||||
| Alternative Carriers–0.13% | ||||||||
Tw Telecom Inc., Sr. Unsec. Conv. Deb., 2.38%, 04/01/26(c) | $ | 11,720,000 | $ | 14,503,500 | ||||
| Application Software–0.20% | ||||||||
| Cadence Design Systems, Inc.–Series B, Sr. Unsec. Conv. Global Notes, 1.50%, 12/15/13 | 22,000,000 | 21,945,000 | ||||||
| Asset Management & Custody Banks–0.40% | ||||||||
Affiliated Managers Group, Inc., Sr. Unsec. Conv. Notes, 3.95%, 08/15/38(c) | 39,246,000 | 43,661,175 | ||||||
| Automobile Manufacturers–0.10% | ||||||||
Daimler Finance North America LLC, Sr. Unsec. Gtd. Notes, 1.88%, 09/15/14(d) | 10,880,000 | 10,818,420 | ||||||
| Automotive Retail–0.16% | ||||||||
| Advance Auto Parts, Inc., Sr. Unsec. Gtd. Notes, 5.75%, 05/01/20 | 9,195,000 | 10,486,165 | ||||||
AutoZone, Inc., Sr. Unsec. Global Notes, 6.50%, 01/15/14 | 5,400,000 | 5,906,683 | ||||||
Sr. Unsec. Notes, 5.88%, 10/15/12 | 1,040,000 | 1,073,744 | ||||||
| 17,466,592 | ||||||||
| Biotechnology–1.38% | ||||||||
| Amylin Pharmaceuticals Inc., Sr. Unsec. Conv. Global Notes, 3.00%, 06/15/14 | 33,647,000 | 32,427,296 | ||||||
| Gilead Sciences, Inc.–Series D, Sr. Unsec. Conv. Notes, 1.63%, 05/01/16 | 75,120,000 | 94,181,700 | ||||||
| Vertex Pharmaceuticals Inc., Sr. Unsec. Sub. Conv. Notes, 3.35%, 10/01/15 | 22,048,000 | 24,914,240 | ||||||
| 151,523,236 | ||||||||
| Brewers–0.14% | ||||||||
| Anheuser-Busch InBev Worldwide, Inc., Sr. Unsec. Gtd. Global Notes, | ||||||||
| 3.63%, 04/15/15 | 6,145,000 | 6,627,402 | ||||||
| 5.38%, 01/15/20 | 950,000 | 1,135,155 | ||||||
| FBG Financial Ltd. (Australia), Sr. Unsec. Gtd. Notes, | ||||||||
5.13%, 06/15/15(d) | 6,965,000 | 7,613,715 | ||||||
| 15,376,272 | ||||||||
| Broadcasting–0.07% | ||||||||
| COX Communications Inc., | ||||||||
Sr. Unsec. Global Notes, 5.45%, 12/15/14 | 400,000 | 446,715 | ||||||
| Sr. Unsec. Notes, | ||||||||
8.38%, 03/01/39(d) | 655,000 | 923,516 | ||||||
| 7.25%, 11/15/15 | 5,000,000 | 5,917,995 | ||||||
| 7,288,226 | ||||||||
| Cable & Satellite–0.48% | ||||||||
| Comcast Corp., Sr. Unsec. Gtd. Global Notes, | ||||||||
| 5.70%, 05/15/18 | 4,735,000 | 5,578,351 | ||||||
Sr. Unsec. Gtd. Notes, 6.45%, 03/15/37 | 2,000,000 | 2,500,290 | ||||||
COX Communications Inc., Sr. Unsec. Notes 6.25%, 06/01/18(d) | 3,700,000 | 4,317,539 | ||||||
| DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 05/15/16 | 14,640,000 | 15,399,450 | ||||||
| NBCUniversal Media LLC, | ||||||||
Sr. Unsec. Global Notes, 2.10%, 04/01/14 | 3,425,000 | 3,500,154 | ||||||
| 5.15%, 04/30/20 | 3,320,000 | 3,851,573 | ||||||
| 5.95%, 04/01/41 | 3,365,000 | 4,085,707 | ||||||
Time Warner Cable, Inc., Sr. Unsec. Gtd. Global Notes, 8.75%, 02/14/19 | 3,935,000 | 5,207,605 | ||||||
Sr. Unsec. Gtd. Notes, 5.88%, 11/15/40 | 7,235,000 | 8,250,346 | ||||||
| 52,691,015 | ||||||||
| Casinos & Gaming–1.01% | ||||||||
| International Game Technology, Sr. Unsec. Conv. Notes, 3.25%, 05/01/14 | 38,202,000 | 42,499,725 | ||||||
| MGM Resorts International, Sr. Unsec. Gtd. Conv. Notes, 4.25%, 04/15/15 | 63,088,000 | 67,819,600 | ||||||
| 110,319,325 | ||||||||
| Communications Equipment–0.29% | ||||||||
Ciena Corp., Sr. Unsec. Conv. Notes, 4.00%, 03/15/15(d) | 29,353,000 | 32,104,844 | ||||||
| Computer & Electronics Retail–0.05% | ||||||||
| Best Buy Co., Inc., Sr. Unsec. Notes, 5.50%, 03/15/21 | 6,025,000 | 5,889,924 | ||||||
| Computer Hardware–0.05% | ||||||||
| Hewlett-Packard Co., Sr. Unsec. Global Notes, 2.63%, 12/09/14 | 5,620,000 | 5,825,607 | ||||||
| Computer Storage & Peripherals–0.87% | ||||||||
| SanDisk Corp., Sr. Unsec. Conv. Notes, 1.00%, 05/15/13 | 94,995,000 | 95,707,462 | ||||||
| Construction Materials–0.50% | ||||||||
| Cemex S.A.B. de C.V. (Mexico), Unsec. Sub. Conv. Notes, 4.88%, 03/15/15 | 60,100,000 | 55,066,625 | ||||||
| Consumer Finance–0.07% | ||||||||
| American Express Credit Corp.–Series C, Sr. Unsec. Medium-Term Global Notes, 7.30%, 08/20/13 | 7,230,000 | 7,858,312 | ||||||
| Capital One Financial Corp., Sr. Unsec. Notes, 6.75%, 09/15/17 | 220,000 | 255,279 | ||||||
| 8,113,591 | ||||||||
| Department Stores–0.04% | ||||||||
| Macy’s Retail Holdings, Inc., Sr. Unsec. Gtd. Notes, 5.35%, 03/15/12 | 4,792,000 | 4,797,990 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Van Kampen Equity and Income Fund
| Principal | ||||||||
| Amount | Value | |||||||
| Diversified Banks–1.99% | ||||||||
| Abbey National Treasury Services PLC (United Kingdom), Sr. Unsec. Gtd. Global Notes, | ||||||||
| 2.88%, 04/25/14 | $ | 2,560,000 | $ | 2,548,312 | ||||
| 4.00%, 04/27/16 | 2,930,000 | 2,890,805 | ||||||
Sr. Unsec. Gtd. Medium-Term Euro Notes, 3.88%, 11/10/14(d) | 4,750,000 | 4,739,911 | ||||||
| Ally Financial, Inc., Gtd. Notes, 2.20%, 12/19/12 | 11,750,000 | 11,933,397 | ||||||
| Bank of Nova Scotia (Canada), Sr. Unsec. Global Notes, 2.38%, 12/17/13 | 6,110,000 | 6,305,082 | ||||||
| Barclays Bank PLC (United Kingdom), Sr. Unsec. Global Notes, | ||||||||
| 6.75%, 05/22/19 | 8,500,000 | 9,756,546 | ||||||
| 2.75%, 02/23/15 | 2,535,000 | 2,552,405 | ||||||
Unsec. Sub. Global Notes, 5.14%, 10/14/20 | 5,015,000 | 4,832,355 | ||||||
BPCE S.A. (France), Sr. Unsec. Notes, 2.38%, 10/04/13(d) | 7,025,000 | 6,902,735 | ||||||
| Citibank N.A., Sr. Unsec. Gtd. Notes, 1.75%, 12/28/12 | 18,400,000 | 18,626,705 | ||||||
Danske Bank A/S (Denmark), Sr. Unsec. Notes, 3.88%, 04/14/16(d) | 9,435,000 | 9,266,131 | ||||||
HBOS PLC (United Kingdom), Unsec. Sub. Medium-Term Global Notes, 6.75%, 05/21/18(d) | 8,535,000 | 7,614,170 | ||||||
HSBC Bank PLC (United Kingdom), Sr. Unsec. Notes, 4.13%, 08/12/20(d) | 8,540,000 | 8,841,612 | ||||||
HSBC Finance Corp., Sr. Unsec. Global Notes, 7.00%, 05/15/12 | 6,600,000 | 6,678,257 | ||||||
Sr. Unsec. Sub. Global Notes, 6.68%, 01/15/21 | 828,000 | 890,445 | ||||||
ING Bank N.V. (Netherlands), Sr. Unsec. Notes, 2.00%, 10/18/13(d) | 4,500,000 | 4,444,934 | ||||||
Unsec. Notes, 3.75%, 03/07/17(d) | 9,590,000 | 9,577,101 | ||||||
| Korea Development Bank (The) (South Korea), Sr. Unsec. Global Notes, 4.38%, 08/10/15 | 3,460,000 | 3,627,809 | ||||||
Lloyds TSB Bank PLC (United Kingdom), Sr. Unsec. Gtd. Global Notes, 4.88%, 01/21/16 | 9,750,000 | 10,101,320 | ||||||
Sr. Unsec. Gtd. Medium-Term Notes, 5.80%, 01/13/20(d) | 1,360,000 | 1,412,944 | ||||||
National Australia Bank Ltd. (Australia), Sr. Unsec. Bonds, 3.75%, 03/02/15(d) | 3,390,000 | 3,548,784 | ||||||
Nordea Bank A.B. (Sweden), Sr. Unsec. Notes, 4.88%, 01/27/20(d) | 4,495,000 | 4,678,315 | ||||||
Series 2, Sr. Unsec. Notes, 3.70%, 11/13/14(d) | 880,000 | 912,786 | ||||||
Rabobank Nederland N.V. (Netherlands), Sr. Unsec. Medium-Term Global Notes, 4.75%, 01/15/20(d) | 9,100,000 | 9,745,029 | ||||||
| Royal Bank of Scotland PLC (The) (United Kingdom), Sr. Unsec. Gtd. Global Notes, 4.88%, 03/16/15 | 8,215,000 | 8,544,503 | ||||||
Santander U.S. Debt S.A. Unipersonal (Spain), Sr. Unsec. Gtd. Notes, 3.72%, 01/20/15(d) | 3,200,000 | 3,060,311 | ||||||
Societe Generale S.A. (France), Sr. Unsec. Notes, 2.50%, 01/15/14(d) | 11,940,000 | 11,669,287 | ||||||
Standard Chartered Bank (United Kingdom), Unsec. Sub. Notes, 6.40%, 09/26/17(d) | 2,310,000 | 2,527,383 | ||||||
| Standard Chartered PLC (United Kingdom), Sr. Unsec. Notes, | ||||||||
5.50%, 11/18/14(d) | 1,140,000 | 1,222,274 | ||||||
3.85%, 04/27/15(d) | 4,190,000 | 4,330,242 | ||||||
| U.S. Bancorp., Sr. Unsec. Notes, 2.00%, 06/14/13 | 8,165,000 | 8,322,682 | ||||||
| U.S. Bank N.A., Sub. Notes, 3.78%, 04/29/20 | 8,200,000 | 8,559,340 | ||||||
Wells Fargo & Co., Sr. Unsec. Global Notes, 3.63%, 04/15/15 | 750,000 | 803,637 | ||||||
Sr. Unsec. Notes, 5.63%, 12/11/17 | 8,095,000 | 9,377,895 | ||||||
| Westpac Banking Corp. (Australia), Sr. Unsec. Global Notes, 2.10%, 08/02/13 | 7,235,000 | 7,324,337 | ||||||
| 218,169,781 | ||||||||
| Diversified Capital Markets–0.14% | ||||||||
| Credit Suisse AG (Switzerland), | ||||||||
| Sr. Unsec. Medium-Term Global Notes, | ||||||||
| 5.30%, 08/13/19 | 3,630,000 | 3,863,859 | ||||||
Sub. Global Notes, 5.40%, 01/14/20 | 1,820,000 | 1,831,656 | ||||||
Unsec. Sub. Global Notes, 6.00%, 02/15/18 | 1,677,000 | 1,769,329 | ||||||
UBS AG (Switzerland), Sr. Unsec. Global Notes, 5.88%, 12/20/17 | 5,200,000 | 5,766,916 | ||||||
Sr. Unsec. Medium-Term Bank Notes, 3.88%, 01/15/15 | 1,435,000 | 1,488,089 | ||||||
Sr. Unsec. Medium-Term Global Notes, 5.75%, 04/25/18 | 520,000 | 573,016 | ||||||
| 15,292,865 | ||||||||
| Diversified Metals & Mining–0.24% | ||||||||
Anglo American Capital PLC (United Kingdom), Sr. Unsec. Gtd. Notes, 9.38%, 04/08/19(d) | 3,185,000 | 4,144,884 | ||||||
| Freeport-McMoRan Copper & Gold Inc., | ||||||||
| Sr. Unsec. Notes, 8.38%, 04/01/17 | 5,865,000 | 6,146,520 | ||||||
| Sr. Unsec. Global Notes 1.40%, 02/13/15 | 5,940,000 | 5,957,611 | ||||||
| Rio Tinto Finance USA Ltd. (Australia), Sr. Unsec. Gtd. Global Notes, 9.00%, 05/01/19 | 5,240,000 | 7,232,322 | ||||||
| Southern Copper Corp., | ||||||||
Sr. Unsec. Global Notes, 5.38%, 04/16/20 | 1,170,000 | 1,294,588 | ||||||
| 6.75%, 04/16/40 | 1,695,000 | 1,863,608 | ||||||
| 26,639,533 | ||||||||
| Diversified Real Estate Activities–0.01% | ||||||||
| Brookfield Asset Management, Inc. (Canada), Sr. Unsec. Notes, 7.13%, 06/15/12 | 1,410,000 | 1,430,092 | ||||||
| Diversified REIT’s–0.16% | ||||||||
Dexus Diversified Trust/Dexus Office Trust (Australia), Sr. Unsec. Gtd. Notes, 5.60%, 03/15/21(d) | 16,355,000 | 16,603,773 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Van Kampen Equity and Income Fund
| Principal | ||||||||
| Amount | Value | |||||||
Diversified REIT’s–(continued) | ||||||||
Qatari Diar Finance QSC (Qatar), Unsec. Gtd. Unsub. Notes, 5.00%, 07/21/20(d) | $ | 440,000 | $ | 468,316 | ||||
| 17,072,089 | ||||||||
| Diversified Support Services–0.06% | ||||||||
| Cintas Corp. No. 2, Sr. Unsec. Gtd. Notes, 2.85%, 06/01/16 | 6,305,000 | 6,516,481 | ||||||
| Drug Retail–0.08% | ||||||||
| CVS Pass-Through Trust, Sec. Global Pass Through Ctfs., 6.04%, 12/10/28 | 7,481,769 | 8,206,890 | ||||||
| Electric Utilities–0.17% | ||||||||
Electricite de France S.A. (France), Sr. Unsec. Notes, 4.60%, 01/27/20(d) | 2,150,000 | 2,282,589 | ||||||
| Enel Finance International N.V. (Luxembourg), | ||||||||
Sr. Unsec. Gtd. Notes, 3.88%, 10/07/14(d) | 600,000 | 607,660 | ||||||
5.13%, 10/07/19(d) | 6,755,000 | 6,593,999 | ||||||
Iberdola Finance Ireland Ltd. (Ireland), Sr. Unsec. Gtd. Notes, 3.80%, 09/11/14(d) | 2,175,000 | 2,216,556 | ||||||
| Louisville Gas & Electric Co., Sec. First Mortgage Global Bonds, 1.63%, 11/15/15 | 5,525,000 | 5,612,751 | ||||||
| Ohio Power Co.–Series M, Sr. Unsec. Notes, 5.38%, 10/01/21 | 1,050,000 | 1,229,860 | ||||||
| PPL Electric Utilities Corp., Sec. First Mortgage Bonds, 6.25%, 05/15/39 | 355,000 | 478,816 | ||||||
| 19,022,231 | ||||||||
| Electronic Components–0.02% | ||||||||
| Corning, Inc., | ||||||||
Sr. Unsec. Notes, 6.63%, 05/15/19 | 730,000 | 887,276 | ||||||
| 7.25%, 08/15/36 | 1,185,000 | 1,435,834 | ||||||
| 2,323,110 | ||||||||
| Environmental & Facilities Services–0.06% | ||||||||
| Waste Management, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 03/15/14 | 6,205,000 | 6,700,965 | ||||||
| Food Retail–0.04% | ||||||||
| Delhaize Group S.A. (Belgium), Sr. Unsec. Gtd. Bonds, 5.88%, 02/01/14 | 3,850,000 | 4,151,919 | ||||||
| General Merchandise Stores–0.09% | ||||||||
| Target Corp., Sr. Unsec. Global Notes, 2.90%, 01/15/22 | 9,830,000 | 9,969,987 | ||||||
| Gold–0.16% | ||||||||
| Barrick Gold Corp. (Canada), Sr. Unsec. Global Notes, 2.90%, 05/30/16 | 6,045,000 | 6,383,113 | ||||||
Gold Fields Orogen Holding BVI Ltd. (British Virgin Islands), Sr. Unsec. Gtd. Notes, 4.88%, 10/07/20(d) | 12,145,000 | 11,644,560 | ||||||
| 18,027,673 | ||||||||
| Health Care Equipment–0.54% | ||||||||
| Boston Scientific Corp., Sr. Unsec. Notes, 4.50%, 01/15/15 | 3,015,000 | 3,239,468 | ||||||
| CareFusion Corp., Sr. Unsec. Global Notes, 4.13%, 08/01/12 | 4,770,000 | 4,829,236 | ||||||
| NuVasive Inc., Sr. Unsec. Conv. Notes, 2.75%, 07/01/17 | 13,684,000 | 11,853,765 | ||||||
| Teleflex Inc., Sr. Unsec. Sub. Conv. Notes, 3.88%, 08/01/17 | 33,647,000 | 39,409,049 | ||||||
| 59,331,518 | ||||||||
| Health Care Facilities–0.44% | ||||||||
| LifePoint Hospitals Inc., Sr. Unsec. Sub. Conv. Notes, 3.50%, 05/15/14 | 46,059,000 | 48,649,819 | ||||||
| Health Care Services–0.54% | ||||||||
| Express Scripts Holding Co., | ||||||||
| Sr. Unsec. Gtd. Global Notes, | ||||||||
| 5.25%, 06/15/12 | 14,295,000 | 14,483,891 | ||||||
| 6.25%, 06/15/14 | 1,300,000 | 1,432,967 | ||||||
Sr. Unsec. Gtd. Notes, 3.13%, 05/15/16 | 3,800,000 | 3,929,334 | ||||||
| Medco Health Solutions Inc., Sr. Unsec. Notes, 2.75%, 09/15/15 | 3,535,000 | 3,591,466 | ||||||
| Omnicare Inc., | ||||||||
| Sr. Unsec. Gtd. Sub. Conv. Notes, | ||||||||
| 3.75%, 12/15/25 | 14,335,000 | 20,570,725 | ||||||
| Series OCR, Sr. Unsec. Gtd. Conv. Deb., | ||||||||
3.25%, 12/15/35(c) | 16,126,000 | 15,601,905 | ||||||
| 59,610,288 | ||||||||
| Hotels, Resorts & Cruise Lines–0.47% | ||||||||
Gaylord Entertainment Co., Sr. Unsec. Gtd. Conv. Notes, 3.75%, 10/01/14(d) | 31,562,000 | 40,083,740 | ||||||
Hyatt Hotels Corp., Sr. Unsec. Notes, 5.75%, 08/15/15(d) | 1,400,000 | 1,536,777 | ||||||
Wyndham Worldwide Corp., Sr. Unsec. Notes, 7.38%, 03/01/20 | 430,000 | 527,197 | ||||||
| 5.63%, 03/01/21 | 8,170,000 | 8,956,362 | ||||||
| 51,104,076 | ||||||||
| Housewares & Specialties–0.08% | ||||||||
| Tupperware Brands Corp., Sr. Unsec. Gtd. Global Notes, 4.75%, 06/01/21 | 8,615,000 | 8,914,986 | ||||||
| Hypermarkets & Super Centers–0.01% | ||||||||
| Wal-Mart Stores, Inc., Sr. Unsec. Global Notes, 6.50%, 08/15/37 | 730,000 | 996,971 | ||||||
| Industrial Conglomerates–0.65% | ||||||||
| General Electric Capital Corp., | ||||||||
| Sr. Unsec. Global Notes, 5.90%, 5/13/14 | 1,465,000 | 1,619,915 | ||||||
| Sr. Unsec. Medium-Term Global Notes, | ||||||||
| 4.65%, 10/17/21 | 4,860,000 | 5,299,069 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Van Kampen Equity and Income Fund
| Principal | ||||||||
| Amount | Value | |||||||
Industrial Conglomerates–(continued) | ||||||||
| Series G, | ||||||||
Sr. Unsec. Gtd. Medium-Term Global Notes, 2.63%, 12/28/12 | $ | 48,180,000 | $ | 49,116,183 | ||||
Sr. Unsec. Medium-Term Notes, 6.00%, 08/07/19 | 8,500,000 | 9,913,077 | ||||||
| General Electric Co., Sr. Unsec. Global Notes, 5.25%, 12/06/17 | 4,445,000 | 5,251,629 | ||||||
| Koninklije Philips Electronics N.V. (Netherlands), Sr. Unsec. Global Notes, 5.75%, 03/11/18 | 115,000 | 135,689 | ||||||
| 71,335,562 | ||||||||
| Industrial Machinery–0.13% | ||||||||
| Pentair, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 05/15/21 | 13,490,000 | 14,379,805 | ||||||
| Integrated Oil & Gas–0.13% | ||||||||
| Hess Corp., Sr. Unsec. Global Notes, 5.60%, 02/15/41 | 3,325,000 | 3,851,240 | ||||||
Petroleos Mexicanos (Mexico), Sr. Unsec. Gtd. Notes, 4.88%, 01/24/22(d) | 7,430,000 | 7,808,914 | ||||||
| Shell International Finance B.V. (Netherlands), Sr. Unsec. Gtd. Global Notes, 3.10%, 06/28/15 | 1,965,000 | 2,117,441 | ||||||
| 13,777,595 | ||||||||
| Integrated Telecommunication Services–0.44% | ||||||||
| AT&T Corp., Sr. Unsec. Gtd. Global Notes, 8.00%, 11/15/31 | 63,000 | 91,143 | ||||||
| AT&T, Inc., | ||||||||
| Sr. Unsec. Global Notes, 1.60%, 02/15/17 | 5,940,000 | 5,963,659 | ||||||
| 2.50%, 08/15/15 | 450,000 | 472,219 | ||||||
| 5.35%, 09/01/40 | 2,077,000 | 2,332,291 | ||||||
| 6.15%, 09/15/34 | 3,675,000 | 4,438,836 | ||||||
| Deutsche Telekom International Finance B.V. (Netherlands), Sr. Unsec. Gtd. Global Bonds, 8.75%, 06/15/30 | 2,545,000 | 3,644,458 | ||||||
| France Telecom S.A. (France), Sr. Unsec. Global Notes, 5.38%, 01/13/42 | 3,260,000 | 3,570,262 | ||||||
| Telecom Italia Capital S.A. (Luxembourg), Sr. Unsec. Gtd. Global Notes, 7.00%, 06/04/18 | 9,615,000 | 9,949,698 | ||||||
| Verizon Communications, Inc., | ||||||||
Sr. Unsec. Global Notes, 3.00%, 04/01/16 | 3,575,000 | 3,821,173 | ||||||
| 6.35%, 04/01/19 | 4,090,000 | 5,073,974 | ||||||
| 8.95%, 03/01/39 | 3,500,000 | 5,580,469 | ||||||
| 4.75%, 11/01/41 | 2,925,000 | 3,142,067 | ||||||
| Windstream Georgia Communications Corp., Sr. Unsec. Notes, 6.50%, 11/15/13 | 672,000 | 688,482 | ||||||
| 48,768,731 | ||||||||
| Internet Retail–0.07% | ||||||||
| Expedia Inc., Sr. Unsec. Gtd. Global Notes, 5.95%, 08/15/20 | 7,765,000 | 7,960,738 | ||||||
| Investment Banking & Brokerage–1.15% | ||||||||
| Charles Schwab Corp. (The), Sr. Unsec. Notes, 4.45%, 07/22/20 | 7,880,000 | 8,655,355 | ||||||
| Goldman Sachs Group, Inc. (The), | ||||||||
Sr. Unsec. Conv. Medium-Term Notes, 1.00%, 03/15/17(d) | 61,461,000 | 57,242,931 | ||||||
| Sr. Unsec. Global Notes, | ||||||||
| 3.70%, 08/01/15 | 1,350,000 | 1,377,099 | ||||||
| 6.15%, 04/01/18 | 15,845,000 | 17,206,175 | ||||||
| 5.25%, 07/27/21 | 5,510,000 | 5,515,250 | ||||||
Unsec. Sub. Global Notes, 6.75%, 10/01/37 | 4,585,000 | 4,589,409 | ||||||
Macquarie Group Ltd. (Australia), Sr. Unsec. Notes, 6.00%, 01/14/20(d) | 950,000 | 893,557 | ||||||
| Morgan Stanley, | ||||||||
| Sr. Unsec. Global Notes, | ||||||||
| 4.00%, 07/24/15 | 12,875,000 | 12,853,446 | ||||||
| 3.80%, 04/29/16 | 5,560,000 | 5,433,479 | ||||||
| Sr. Unsec. Notes, | ||||||||
| 3.45%, 11/02/15 | 9,855,000 | 9,680,001 | ||||||
| 5.75%, 01/25/21 | 3,135,000 | 3,117,226 | ||||||
| 126,563,928 | ||||||||
| IT Consulting & Other Services–0.00% | ||||||||
| International Business Machines Corp., Sr. Unsec. Global Notes, 7.63%, 10/15/18 | 100,000 | 135,734 | ||||||
| Life & Health Insurance–0.29% | ||||||||
| Aegon N.V. (Netherlands), Sr. Unsec. Global Bonds, 4.63%, 12/01/15 | 3,100,000 | 3,267,936 | ||||||
| Aflac Inc., Sr. Unsec. Global Notes, 4.00%, 02/15/22 | 5,100,000 | 5,191,226 | ||||||
MetLife, Inc., Sr. Unsec. Global Notes, 4.75%, 02/08/21 | 3,565,000 | 3,950,403 | ||||||
Series A, Sr. Unsec. Notes, 6.82%, 08/15/18 | 3,070,000 | 3,747,523 | ||||||
Pacific LifeCorp., Sr. Unsec. Notes, 6.00%, 02/10/20(d) | 3,425,000 | 3,778,342 | ||||||
| Prudential Financial, Inc., Series D, | ||||||||
Sr. Unsec. Medium-Term Notes, 3.88%, 01/14/15 | 950,000 | 1,006,664 | ||||||
| 4.75%, 09/17/15 | 5,030,000 | 5,508,887 | ||||||
| 7.38%, 06/15/19 | 1,020,000 | 1,268,744 | ||||||
| 6.63%, 12/01/37 | 3,475,000 | 4,138,632 | ||||||
| 31,858,357 | ||||||||
| Managed Health Care–0.10% | ||||||||
| Aetna, Inc., Sr. Unsec. Global Notes, 3.95%, 09/01/20 | 9,990,000 | 10,706,610 | ||||||
| Mortgage Backed Securities–0.01% | ||||||||
| U.S. Bank N.A., Sr. Unsec. Medium-Term Notes, 5.92%, 05/25/12 | 1,011,140 | 1,023,005 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Van Kampen Equity and Income Fund
| Principal | ||||||||
| Amount | Value | |||||||
| Movies & Entertainment–0.39% | ||||||||
Liberty Interactive LLC, Sr. Unsec. Conv. Notes, 3.13%, 03/30/23(c) | $ | 33,234,000 | $ | 39,963,885 | ||||
| Time Warner, Inc., Sr. Unsec. Gtd. Notes, 5.88%, 11/15/16 | 2,655,000 | 3,141,494 | ||||||
| 43,105,379 | ||||||||
| Multi-Line Insurance–0.06% | ||||||||
| CNA Financial Corp., Sr. Unsec. Global Bonds, 5.88%, 08/15/20 | 4,915,000 | 5,336,971 | ||||||
Liberty Mutual Group Inc., Sr. Unsec. Notes, 5.75%, 03/15/14(d) | 730,000 | 760,936 | ||||||
| 6,097,907 | ||||||||
| Office Electronics–0.01% | ||||||||
| Xerox Corp., Sr. Unsec. Notes, 4.25%, 02/15/15 | 820,000 | 875,454 | ||||||
| Office REIT’s–0.05% | ||||||||
| Digital Realty Trust L.P., Sr. Unsec. Gtd. Global Notes, 4.50%, 07/15/15 | 5,210,000 | 5,445,334 | ||||||
| Oil & Gas Drilling–0.01% | ||||||||
| Noble Holding International Ltd., Sr. Unsec. Gtd. Global Notes, 2.50%, 03/15/17 | 1,150,000 | 1,159,965 | ||||||
| Oil & Gas Equipment & Services–0.23% | ||||||||
| Helix Energy Solutions Group, Inc., | ||||||||
Sr. Unsec. Conv. Notes, 3.25%, 12/15/25(c) | 25,155,000 | 25,375,106 | ||||||
| Oil & Gas Exploration & Production–0.16% | ||||||||
| Petrobras International Finance Co. (Brazil), Sr. Unsec. Gtd. Global Notes, 6.88%, 01/20/40 | 260,000 | 306,278 | ||||||
| Petroleos Mexicanos (Mexico), Sr. Unsec. Gtd. Global Notes, 5.50%, 01/21/21 | 6,200,000 | 6,817,517 | ||||||
| Southwestern Energy Co., | ||||||||
Sr. Unsec. Gtd. Notes, 4.10%, 03/15/22(d) | 9,585,000 | 9,573,210 | ||||||
| XTO Energy, Inc., Sr. Unsec. Notes, 5.75%, 12/15/13 | 310,000 | 337,817 | ||||||
| 17,034,822 | ||||||||
| Oil & Gas Storage & Transportation–0.16% | ||||||||
| Enterprise Products Operating LLC, | ||||||||
Sr. Unsec. Gtd. Global Notes, 5.25%, 01/31/20 | 2,380,000 | 2,696,013 | ||||||
Sr. Unsec. Gtd. Notes, 6.45%, 09/01/40 | 555,000 | 685,872 | ||||||
Series N, Sr. Unsec. Gtd. Notes, 6.50%, 01/31/19 | 4,420,000 | 5,293,538 | ||||||
| Spectra Energy Capital LLC, | ||||||||
Sr. Unsec. Gtd. Notes, 5.65%, 03/01/20 | 1,100,000 | 1,248,396 | ||||||
| 7.50%, 09/15/38 | 2,245,000 | 2,915,711 | ||||||
| Texas Eastern Transmission L.P., Sr. Unsec. Notes, 7.00%, 07/15/32 | 3,835,000 | 4,813,619 | ||||||
| 17,653,149 | ||||||||
| Other Diversified Financial Services–1.51% | ||||||||
Bank of America Corp., Sr. Unsec. Global Notes, 5.75%, 12/01/17 | 2,825,000 | 2,981,449 | ||||||
Sr. Unsec. Medium-Term Notes, 7.38%, 05/15/14 | 315,000 | 342,000 | ||||||
Series L, Sr. Unsec. Medium-Term Global Notes, 5.65%, 05/01/18 | 16,030,000 | 16,779,712 | ||||||
| Bear Stearns Cos., LLC (The), Sr. Unsec. Global Notes, 7.25%, 02/01/18 | 8,140,000 | 9,855,011 | ||||||
| Citigroup Funding, Inc., Unsec. Gtd. Unsub. Global Notes, 2.25%, 12/10/12 | 70,500,000 | 71,573,444 | ||||||
| Citigroup, Inc., | ||||||||
| Sr. Unsec. Global Notes, | ||||||||
| 6.01%, 01/15/15 | 1,615,000 | 1,762,744 | ||||||
| 6.13%, 11/21/17 | 11,440,000 | 12,805,053 | ||||||
| 8.50%, 05/22/19 | 4,200,000 | 5,227,152 | ||||||
Sr. Unsec. Notes, 4.75%, 05/19/15 | 1,000,000 | 1,061,473 | ||||||
| ERAC USA Finance LLC, | ||||||||
Sr. Unsec. Gtd. Notes, 5.80%, 10/15/12(d) | 1,715,000 | 1,764,174 | ||||||
2.75%, 07/01/13(d) | 5,060,000 | 5,135,117 | ||||||
| JPMorgan Chase & Co., | ||||||||
Sr. Unsec. Global Notes, 4.75%, 05/01/13 | 1,280,000 | 1,335,534 | ||||||
| 4.40%, 07/22/20 | 5,700,000 | 5,970,514 | ||||||
| 4.50%, 01/24/22 | 7,380,000 | 7,881,581 | ||||||
Sr. Unsec. Notes, 6.00%, 01/15/18 | 7,395,000 | 8,603,399 | ||||||
Unsec. Sub. Global Notes, 5.13%, 09/15/14 | 1,530,000 | 1,641,071 | ||||||
| Merrill Lynch & Co., Inc., Sr. Unsec. Medium-Term Notes, 6.88%, 04/25/18 | 9,445,000 | 10,279,242 | ||||||
Twin Reefs Pass-Through Trust, Sec. Pass Through Ctfs., 1.39%, 12/10/34 (Acquired 12/07/04-10/23/06; Cost $1,609,000)(d)(e)(f) | 1,610,000 | — | ||||||
| 164,998,670 | ||||||||
| Packaged Foods & Meats–0.20% | ||||||||
Grupo Bimbo S.A.B. de C.V. (Mexico), Sr. Unsec. Gtd. Notes, 4.88%, 06/30/20(d) | 5,095,000 | 5,461,836 | ||||||
| Kraft Foods Inc., | ||||||||
| Sr. Unsec. Global Notes, | ||||||||
| 5.38%, 02/10/20 | 2,205,000 | 2,574,689 | ||||||
| 7.00%, 08/11/37 | 7,160,000 | 9,478,504 | ||||||
| 6.88%, 02/01/38 | 842,000 | 1,112,285 | ||||||
Sr. Unsec. Notes, 6.88%, 01/26/39 | 2,125,000 | 2,800,320 | ||||||
| 21,427,634 | ||||||||
| Paper Products–0.04% | ||||||||
| International Paper Co., | ||||||||
| Sr. Unsec. Global Notes, 6.00%, 11/15/41 | 3,880,000 | 4,507,400 | ||||||
| Pharmaceuticals–0.66% | ||||||||
| Endo Pharmaceuticals Holdings Inc., Sr. Unsec. Sub. Conv. Notes, 1.75%, 04/15/15 | 28,137,000 | 39,040,087 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Van Kampen Equity and Income Fund
| Principal | ||||||||
| Amount | Value | |||||||
Pharmaceuticals–(continued) | ||||||||
| Salix Pharmaceuticals Ltd., Sr. Unsec. Conv. Notes, 2.75%, 05/15/15 | $ | 25,391,000 | $ | 33,643,075 | ||||
| 72,683,162 | ||||||||
| Property & Casualty Insurance–0.00% | ||||||||
| CNA Financial Corp., Sr. Unsec. Notes, 7.35%, 11/15/19 | 425,000 | 494,246 | ||||||
| Railroads–0.04% | ||||||||
| CSX Corp., | ||||||||
Sr. Unsec. Global Notes, 6.15%, 05/01/37 | 1,750,000 | 2,141,686 | ||||||
Sr. Unsec. Notes, 5.50%, 04/15/41 | 1,660,000 | 1,926,323 | ||||||
| 4,068,009 | ||||||||
| Regional Banks–0.25% | ||||||||
| Key Bank NA, Sr. Unsec. Gtd. Global Notes, 3.20%, 06/15/12 | 7,500,000 | 7,563,459 | ||||||
Nationwide Building Society (United Kingdom), Sr. Unsec. Notes, 6.25%, 02/25/20(d) | 8,845,000 | 9,280,353 | ||||||
PNC Funding Corp., Sr. Unsec. Gtd. Global Notes, 5.13%, 02/08/20 | 5,305,000 | 6,117,159 | ||||||
Sr. Unsec. Gtd. Notes, 6.70%, 06/10/19 | 3,635,000 | 4,489,853 | ||||||
| 27,450,824 | ||||||||
| Restaurants–0.01% | ||||||||
| Yum! Brands, Inc., Sr. Unsec. Global Bonds, 6.25%, 03/15/18 | 1,175,000 | 1,402,012 | ||||||
| Retail REIT’s–0.06% | ||||||||
WEA Finance LLC, Sr. Unsec. Gtd. Notes, 7.13%, 04/15/18(d) | 5,290,000 | 6,336,731 | ||||||
| Semiconductor Equipment–0.19% | ||||||||
Novellus Systems Inc., Sr. Unsec. Conv. Notes, 2.63%, 05/15/41(d) | 15,729,000 | 20,762,280 | ||||||
| Semiconductors–0.85% | ||||||||
Linear Technology Corp., Sr. Unsec. Conv. Notes, 3.00%, 05/01/27(c)(d) | 36,420,000 | 39,060,450 | ||||||
Micron Technology Inc.–Series A, Sr. Unsec. Conv. Notes, 1.50%, 08/01/31(c)(d) | 24,953,000 | 27,229,961 | ||||||
Xilinx Inc., Jr. Unsec. Sub. Conv. Notes, 3.13%, 03/15/37(d) | 20,622,000 | 26,679,713 | ||||||
| 92,970,124 | ||||||||
| Sovereign Debt–0.21% | ||||||||
| Brazilian Government International Bond (Brazil), Sr. Unsec. Global Bonds, 6.00%, 01/17/17 | 16,505,000 | 19,599,687 | ||||||
| Peruvian Government International Bond (Peru), Sr. Unsec. Global Notes, 7.13%, 03/30/19 | 1,650,000 | 2,093,438 | ||||||
Russian Foreign Bond–Eurobond (Russia), Sr. Unsec. Notes, 3.63%, 04/29/15(d) | 800,000 | 834,000 | ||||||
| 22,527,125 | ||||||||
| Specialized Finance–0.03% | ||||||||
| National Rural Utilities Cooperative Finance Corp., | ||||||||
| Sr. Sec. Collateral Trust Notes, 2.63%, 09/16/12 | 440,000 | 444,945 | ||||||
| 3.05%, 02/15/22 | 2,550,000 | 2,586,305 | ||||||
| 3,031,250 | ||||||||
| Specialized REIT’s–0.15% | ||||||||
| American Tower Corp., | ||||||||
Sr. Unsec. Global Notes, 4.63%, 04/01/15 | 2,425,000 | 2,585,982 | ||||||
Sr. Unsec. Notes, 4.50%, 01/15/18 | 4,620,000 | 4,783,352 | ||||||
| Senior Housing Properties Trust, Sr. Unsec. Notes, 4.30%, 01/15/16 | 6,620,000 | 6,646,480 | ||||||
| Ventas Realty L.P./Ventas Capital Corp., Sr. Unsec. Gtd. Notes, 4.25%, 03/01/22 | 2,635,000 | 2,628,336 | ||||||
| 16,644,150 | ||||||||
| Steel–0.28% | ||||||||
| ArcelorMittal (Luxembourg), | ||||||||
Sr. Unsec. Global Bonds, 9.85%, 06/01/19 | 7,005,000 | 8,459,307 | ||||||
Sr. Unsec. Global Notes, 3.75%, 08/05/15 | 8,775,000 | 8,951,503 | ||||||
| 6.13%, 06/01/18 | 390,000 | 410,781 | ||||||
| 5.50%, 03/01/21 | 1,325,000 | 1,313,588 | ||||||
| 7.00%, 10/15/39 | 910,000 | 894,583 | ||||||
| 6.75%, 03/01/41 | 1,325,000 | 1,293,459 | ||||||
| Vale Overseas Ltd. (Brazil), | ||||||||
Sr. Unsec. Gtd. Global Notes, 5.63%, 09/15/19 | 3,655,000 | 4,172,277 | ||||||
| 4.63%, 09/15/20 | 320,000 | 344,233 | ||||||
| 6.88%, 11/10/39 | 4,075,000 | 5,051,334 | ||||||
| 30,891,065 | ||||||||
| Systems Software–0.25% | ||||||||
| Symantec Corp.–Class B, Sr. Unsec. Conv. Global Notes, 1.00%, 06/15/13 | 24,728,000 | 27,695,360 | ||||||
| Thrifts & Mortgage Finance–0.11% | ||||||||
| MGIC Investment Corp., Sr. Unsec. Conv. Notes, 5.00%, 05/01/17 | 16,283,000 | 12,334,372 | ||||||
| Tobacco–0.01% | ||||||||
| Altria Group, Inc., Sr. Unsec. Gtd. Global Notes, 4.13%, 09/11/15 | 715,000 | 784,762 | ||||||
| Trading Companies & Distributors–0.00% | ||||||||
| GATX Corp., Sr. Unsec. Notes, 4.75%, 10/01/12 | 450,000 | 459,636 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 Invesco Van Kampen Equity and Income Fund
| Principal | ||||||||
| Amount | Value | |||||||
| Trucking–0.04% | ||||||||
| Ryder System, Inc., Sr. Unsec. Medium-Term Notes, 3.15%, 03/02/15 | $ | 4,030,000 | $ | 4,203,351 | ||||
| Wireless Telecommunication Services–0.53% | ||||||||
| America Movil S.A.B. de C.V. (Mexico), Sr. Unsec. Gtd. Global Notes, 2.38%, 09/08/16 | 4,450,000 | 4,563,682 | ||||||
Crown Castle Towers LLC, Sr. Sec. Gtd. Notes, 3.21%, 08/15/15(d) | 5,095,000 | 5,260,588 | ||||||
| SBA Communications Corp., Sr. Unsec. Conv. Notes, 1.88%, 05/01/13 | 40,663,000 | 48,439,799 | ||||||
| 58,264,069 | ||||||||
| Total U.S. Dollar Denominated Bonds and Notes (Cost $2,147,968,742) | 2,317,412,029 | |||||||
| U.S. Treasury Securities–8.14% | ||||||||
| U.S. Treasury Notes–6.60% | ||||||||
| 0.75%, 05/31/12 | 17,760,000 | 17,787,750 | ||||||
| 1.75%, 08/15/12 | 4,080,000 | 4,110,003 | ||||||
| 4.38%, 08/15/12 | 500,000 | 509,693 | ||||||
| 1.38%, 09/15/12 | 21,200,000 | 21,336,641 | ||||||
| 1.50%, 12/31/13 | 28,000,000 | 28,614,687 | ||||||
| 1.75%, 03/31/14 | 12,000,000 | 12,356,250 | ||||||
| 2.63%, 07/31/14 | 95,125,000 | 100,282,559 | ||||||
| 2.38%, 10/31/14 | 231,415,000 | 243,455,812 | ||||||
| 2.13%, 11/30/14 | 77,385,000 | 80,964,056 | ||||||
| 2.25%, 01/31/15 | 19,650,000 | 20,678,555 | ||||||
| 2.50%, 03/31/15 | 495,000 | 525,705 | ||||||
| 2.13%, 05/31/15 | 4,445,000 | 4,677,668 | ||||||
| 2.00%, 04/30/16 | 17,445,000 | 18,377,217 | ||||||
| 1.75%, 05/31/16 | 950,000 | 991,414 | ||||||
| 3.75%, 11/15/18 | 34,750,000 | 40,255,703 | ||||||
| 1.25%, 01/31/19 | 25,000,000 | 24,789,062 | ||||||
| 3.63%, 08/15/19 | 58,350,000 | 67,248,375 | ||||||
| 3.38%, 11/15/19 | 20,000,000 | 22,700,000 | ||||||
| 2.63%, 11/15/20 | 6,500,000 | 6,964,141 | ||||||
| 2.13%, 08/15/21 | 2,440,000 | 2,488,800 | ||||||
| 2.00%, 11/15/21 | 4,700,000 | 4,724,234 | ||||||
| 723,838,325 | ||||||||
| U.S. Treasury Bonds–1.51% | ||||||||
| 8.00%, 11/15/21 | 3,557,000 | 5,516,129 | ||||||
| 6.88%, 08/15/25 | 20,000 | 30,388 | ||||||
| 6.13%, 11/15/27 | 19,110,000 | 27,876,713 | ||||||
| 5.38%, 02/15/31 | 5,205,000 | 7,253,655 | ||||||
| 3.50%, 02/15/39 | 31,890,000 | 34,705,289 | ||||||
| 4.25%, 05/15/39 | 9,900,000 | 12,200,203 | ||||||
| 4.50%, 08/15/39 | 1,060,000 | 1,357,794 | ||||||
| 4.38%, 11/15/39 | 13,200,000 | 16,588,688 | ||||||
| 4.63%, 02/15/40 | 18,150,000 | 23,711,273 | ||||||
| 4.38%, 05/15/40 | 1,280,000 | 1,610,200 | ||||||
| 4.25%, 11/15/40 | 500,000 | 616,875 | ||||||
| 3.13%, 11/15/41 | 34,000,000 | 34,281,562 | ||||||
| 165,748,769 | ||||||||
| U.S. Treasury Bills–0.03% | ||||||||
0.10%, 11/15/12(g)(h) | 3,200,000 | 3,196,902 | ||||||
| Total U.S. Treasury Securities (Cost $830,213,674) | 892,783,996 | |||||||
| Shares | ||||||||
| Preferred Stocks–1.96% | ||||||||
| Health Care Facilities–0.24% | ||||||||
| HealthSouth Corp., Series A, $65.00 Conv. Pfd. | 27,000 | 26,838,000 | ||||||
| Health Care Services–0.15% | ||||||||
| Omnicare Capital Trust II, Series B, $2.00 Conv. Pfd. | 356,855 | 16,772,185 | ||||||
| Multi-Utilities–0.44% | ||||||||
| CenterPoint Energy, Inc. $1.97 Conv. Pfd. | 1,300,669 | 48,775,087 | ||||||
| Oil & Gas Storage & Transportation–0.37% | ||||||||
| El Paso Energy Captial Trust I $2.38 Conv. Pfd | 875,900 | 40,221,328 | ||||||
| Regional Banks–0.44% | ||||||||
| KeyCorp, Series A, $7.75 Conv. Pfd. | 427,098 | 47,860,602 | ||||||
| Research & Consulting Services–0.06% | ||||||||
| Nielsen Holdings N.V.,(Netherlands) $3.13 Conv. Pfd. | 106,910 | 6,147,325 | ||||||
| Trucking–0.26% | ||||||||
2010 Swift Mandatory Common Exchange Security Trust, $0.66 Conv. Pfd.(d) | 2,398,700 | 28,271,798 | ||||||
| Total Preferred Stocks (Cost $188,512,415) | 214,886,325 | |||||||
| Principal | ||||||||
| Amount | ||||||||
| U.S. Government Sponsored Agency Securities–1.18% | ||||||||
| Federal Home Loan Mortgage Corp. (FHLMC)–0.69% | ||||||||
Sr. Unsec. Global Bonds, 6.75%, 03/15/31 | $ | 7,000,000 | 10,420,495 | |||||
Sr. Unsec. Global Notes, 3.00%, 07/28/14 | 23,700,000 | 25,172,643 | ||||||
Unsec. Global Notes, 4.88%, 06/13/18 | 33,680,000 | 40,570,393 | ||||||
| 76,163,531 | ||||||||
| �� | ||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 Invesco Van Kampen Equity and Income Fund
| Principal | ||||||||
| Amount | Value | |||||||
| Federal National Mortgage Association (FNMA)–0.49% | ||||||||
Sr. Unsec. Global Bonds, 6.63%, 11/15/30 | $ | 6,315,000 | $ | 9,270,293 | ||||
| Sr. Unsec. Global Notes, | ||||||||
| 2.88%, 12/11/13 | 600,000 | 627,100 | ||||||
| 4.38%, 10/15/15 | 38,850,000 | 43,971,105 | ||||||
| 53,868,498 | ||||||||
| Total U.S. Government Sponsored Agency Securities (Cost $118,959,151) | 130,032,029 | |||||||
| Municipal Obligations–0.14% | ||||||||
| California (State of); Series 2009, Unlimited Tax GO Bonds, 5.95%, 04/01/16 | 2,390,000 | 2,726,512 | ||||||
| Georgia (State of) Municipal Electric Authority (Plant Vogtle Units 3 & 4 Project J); Series 2010 A, Taxable Build America RB, 6.64%, 04/01/57 | 2,600,000 | 3,035,058 | ||||||
| Georgia (State of) Municipal Electric Authority; Series 2010, Build America RB, 6.66%, 04/01/57 | 4,980,000 | 5,784,419 | ||||||
| Texas (State of) Transportation Commission; Series 2010 B, Taxable First Tier Build America RB, 5.03%, 04/01/26 | 3,450,000 | 4,204,550 | ||||||
| Total Municipal Obligations (Cost $13,487,817) | 15,750,539 | |||||||
| Asset-Backed Securities–0.06% | ||||||||
ARI Fleet Lease Trust–Series 2010-A, Class A, Floating Rate Pass Through Ctfs., 1.70%, 08/15/18(d)(i) | 885,366 | 885,765 | ||||||
GE Dealer Floorplan Master Note Trust–Series 2009 2A, Class A, Floating Rate Pass Through Ctfs., 1.80%, 10/20/14(d)(i) | 5,200,000 | 5,242,276 | ||||||
| Nomura Asset Acceptance Corp.–Series 2005 AR1, Floating Rate Pass Through Ctfs., 0.52%, 02/25/35 | 15,880 | 14,951 | ||||||
| Total Asset-Backed Securities (Cost $6,101,245) | 6,142,992 | |||||||
| U.S. Government Sponsored Mortgage-Backed Securities–0.00% | ||||||||
| Federal Home Loan Mortgage Corp. (FHLMC)–0.00% | ||||||||
Pass Through Ctfs., 6.50%, 05/01/29 | 4 | 5 | ||||||
| 5.50%, 02/01/37 | 525 | 570 | ||||||
| 575 | ||||||||
| Federal National Mortgage Association (FNMA)–0.00% | ||||||||
Pass Through Ctfs., 7.00%, 06/01/12 to 07/01/32 | 117,958 | 136,040 | ||||||
| 5.50%, 03/01/21 | 363 | 396 | ||||||
| 8.00%, 08/01/21 | 8,399 | 9,513 | ||||||
| 145,949 | ||||||||
| Government National Mortgage Association (GNMA)–0.00% | ||||||||
Pass Through Ctfs., 8.00%, 04/15/26 to 01/20/31 | 46,817 | 52,285 | ||||||
| 7.50%, 12/20/30 | 3,545 | 4,282 | ||||||
| 56,567 | ||||||||
| Total U.S. Government Sponsored Mortgage-Backed Securities (Cost $184,272) | 203,091 | |||||||
| Shares | ||||||||
| Money Market Funds–4.12% | ||||||||
Liquid Assets Portfolio–Institutional Class(j) | 226,159,541 | 226,159,541 | ||||||
Premier Portfolio–Institutional Class(j) | 226,159,541 | 226,159,541 | ||||||
| Total Money Market Funds (Cost $452,319,082) | 452,319,082 | |||||||
| TOTAL INVESTMENTS–99.56% (Cost $9,967,157,761) | 10,925,534,802 | |||||||
| OTHER ASSETS LESS LIABILITIES–0.44% | 48,787,714 | |||||||
| NET ASSETS–100.00% | $ | 10,974,322,516 | ||||||
Investment Abbreviations:
| ADR | – American Depositary Receipt | |
| Conv. | – Convertible | |
| Ctfs. | – Certificates | |
| Deb. | – Debentures | |
| ETF | – Exchange-Traded Fund | |
| GO | – General Obligation | |
| Gtd. | – Guaranteed | |
| Jr. | – Junior | |
| Pfd. | – Preferred | |
| RB | – Revenue Bonds | |
| REIT | – Real Estate Investment Trust | |
| Sec. | – Secured | |
| SPDR | – Standard & Poor’s Depositary Receipt | |
| Sr. | – Senior | |
| Sub. | – Subordinated | |
| Unsec. | – Unsecured | |
| Unsub. | – Unsubordinated |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 Invesco Van Kampen Equity and Income Fund
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) | Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put. | |
| (d) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at February 29, 2012 was $498,717,769, which represented 4.54% of the Fund’s Net Assets. | |
| (e) | Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The value of this security at February 29, 2012 represented less than 1% of the Fund’s Net Assets. | |
| (f) | Perpetual bond with no specified maturity date. | |
| (g) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. | |
| (h) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1I and Note 4. | |
| (i) | Interest or dividend rate is redetermined quarterly. Rate shown is the rate in effect on February 29, 2012. | |
| (j) | The money market fund and the Fund are affiliated by having the same investment adviser. |
By security type, based on Net Assets
as of February 29, 2012
| Common Stocks & Other Equity Interests | 62.8 | % | ||
| U.S. Dollar Denominated Bonds and Notes | 21.1 | |||
| U.S. Treasury Securities | 8.1 | |||
| Preferred Stocks | 2.0 | |||
| U.S. Government Sponsored Agency Securities | 1.2 | |||
| Municipal Obligations | 0.1 | |||
| Asset-Backed Securities | 0.1 | |||
| Money Market Funds Plus Other Assets Less Liabilities | 4.6 | |||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 Invesco Van Kampen Equity and Income Fund
Statement of Assets and Liabilities
February 29, 2012
(Unaudited)
| Assets: | ||||
| Investments, at value (Cost $9,514,838,679) | $ | 10,473,215,720 | ||
| Investments in affiliated money market funds, at value and cost | 452,319,082 | |||
| Total investments, at value (Cost $9,967,157,761) | 10,925,534,802 | |||
| Foreign currencies, at value (Cost $22,510,822) | 22,790,843 | |||
| Receivable for: | ||||
| Investments sold | 42,574,458 | |||
| Variation margin | 555,031 | |||
| Fund shares sold | 7,964,113 | |||
| Dividends and interest | 49,715,982 | |||
| Principal paydowns | 378 | |||
| Investment for trustee deferred compensation and retirement plans | 285,999 | |||
| Other assets | 334,607 | |||
| Total assets | 11,049,756,213 | |||
| Liabilities: | ||||
| Payable for: | ||||
| Investments purchased | 39,071,993 | |||
| Fund shares reacquired | 25,324,923 | |||
| Foreign currency contracts outstanding | 935,570 | |||
| Accrued fees to affiliates | 8,337,324 | |||
| Accrued other operating expenses | 917,089 | |||
| Trustee deferred compensation and retirement plans | 846,798 | |||
| Total liabilities | 75,433,697 | |||
| Net assets applicable to shares outstanding | $ | 10,974,322,516 | ||
| Net assets consist of: | ||||
| Shares of beneficial interest | $ | 10,344,610,686 | ||
| Undistributed net investment income | 37,451,079 | |||
| Undistributed net realized gain (loss) | (365,989,239 | ) | ||
| Unrealized appreciation | 958,249,990 | |||
| $ | 10,974,322,516 | |||
| Net Assets: | ||||
| Class A | $ | 8,061,504,470 | ||
| Class B | $ | 890,271,805 | ||
| Class C | $ | 1,208,026,810 | ||
| Class R | $ | 194,312,081 | ||
| Class Y | $ | 404,013,947 | ||
| Institutional Class | $ | 216,193,403 | ||
| Shares outstanding, $0.01 par value per share, with an unlimited number of shares authorized: | ||||
| Class A | 915,639,887 | |||
| Class B | 103,046,278 | |||
| Class C | 139,314,161 | |||
| Class R | 21,983,358 | |||
| Class Y | 45,872,087 | |||
| Institutional Class | 24,534,775 | |||
| Class A: | ||||
| Net asset value per share | $ | 8.80 | ||
| Maximum offering price per share (Net asset value of $8.80 divided by 94.50%) | $ | 9.31 | ||
| Class B: | ||||
| Net asset value and offering price per share | $ | 8.64 | ||
| Class C: | ||||
| Net asset value and offering price per share | $ | 8.67 | ||
| Class R: | ||||
| Net asset value and offering price per share | $ | 8.84 | ||
| Class Y: | ||||
| Net asset value and offering price per share | $ | 8.81 | ||
| Institutional Class: | ||||
| Net asset value and offering price per share | $ | 8.81 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 Invesco Van Kampen Equity and Income Fund
Statement of Operations
For the six months ended February 29, 2012
(Unaudited)
| Investment income: | ||||
| Dividends (net of foreign withholding taxes of $1,358,912) | $ | 98,979,779 | ||
| Dividends from affiliated money market funds | 202,557 | |||
| Interest | 57,891,124 | |||
| Total investment income | 157,073,460 | |||
| Expenses: | ||||
| Advisory fees | 18,726,688 | |||
| Administrative services fees | 407,550 | |||
| Custodian fees | 75,707 | |||
| Distribution fees: | ||||
| Class A | 9,662,774 | |||
| Class B | 4,651,308 | |||
| Class C | 5,870,400 | |||
| Class R | 457,198 | |||
| Transfer agent fees — A, B, C, R and Y | 9,761,186 | |||
| Transfer agent fees — Institutional | 29,149 | |||
| Trustees’ and officers’ fees and benefits | 326,887 | |||
| Other | 161,499 | |||
| Total expenses | 50,130,346 | |||
| Less: Fees waived and expense offset arrangement(s) | (3,134,822 | ) | ||
| Net expenses | 46,995,524 | |||
| Net investment income | 110,077,936 | |||
| Realized and unrealized gain (loss) from: | ||||
| Net realized gain (loss) from: | ||||
| Investment securities | (100,122,287 | ) | ||
| Foreign currencies | (89,726 | ) | ||
| Foreign currency contracts | 17,101,455 | |||
| Futures contracts | (14,170,294 | ) | ||
| (97,280,852 | ) | |||
| Change in net unrealized appreciation (depreciation) of: | ||||
| Investment securities | 857,409,665 | |||
| Foreign currencies | 277,808 | |||
| Foreign currency contracts | (1,030,015 | ) | ||
| Futures contracts | 8,508,719 | |||
| 865,166,177 | ||||
| Net realized and unrealized gain | 767,885,325 | |||
| Net increase in net assets resulting from operations | $ | 877,963,261 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
17 Invesco Van Kampen Equity and Income Fund
Statement of Changes in Net Assets
For the six months ended February 29, 2012 and the year ended August 31, 2011
(Unaudited)
| Six months ended | Year ended | |||||||
| February 29, | August 31, | |||||||
| 2012 | 2011 | |||||||
| Operations: | ||||||||
| Net investment income | $ | 110,077,936 | $ | 194,686,900 | ||||
| Net realized gain (loss) | (97,280,852 | ) | 710,295,404 | |||||
| Change in net unrealized appreciation | 865,166,177 | 221,667,945 | ||||||
| Net increase in net assets resulting from operations | 877,963,261 | 1,126,650,249 | ||||||
| Distributions to shareholders from net investment income: | ||||||||
| Class A | (82,746,692 | ) | (150,003,794 | ) | ||||
| Class B | (9,704,079 | ) | (22,043,921 | ) | ||||
| Class C | (8,458,351 | ) | (14,081,775 | ) | ||||
| Class R | (1,750,848 | ) | (3,025,566 | ) | ||||
| Class Y | (4,653,359 | ) | (9,905,470 | ) | ||||
| Institutional Class | (2,352,633 | ) | (1,974,595 | ) | ||||
| Total distributions from net investment income | (109,665,962 | ) | (201,035,121 | ) | ||||
| Share transactions–net: | ||||||||
| Class A | (411,417,969 | ) | (294,013,394 | ) | ||||
| Class B | (188,195,532 | ) | (393,976,120 | ) | ||||
| Class C | (93,468,486 | ) | (98,154,582 | ) | ||||
| Class R | (1,374,670 | ) | (4,687,717 | ) | ||||
| Class Y | (43,732,066 | ) | (22,575,978 | ) | ||||
| Institutional Class | 43,888,845 | 87,888,812 | ||||||
| Net increase (decrease) in net assets resulting from share transactions | (694,299,878 | ) | (725,518,979 | ) | ||||
| Net increase in net assets | 73,997,421 | 200,096,149 | ||||||
| Net assets: | ||||||||
| Beginning of period | 10,900,325,095 | 10,700,228,946 | ||||||
| End of period (includes undistributed net investment income of $37,451,079 and $37,039,105, respectively) | $ | 10,974,322,516 | $ | 10,900,325,095 | ||||
Notes to Financial Statements
February 29, 2012
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco Van Kampen Equity and Income Fund (the “Fund”), is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (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 twelve 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 to seek the highest possible income consistent with safety of principal. Long-term growth of capital is an important secondary investment objective.
The Fund currently consists of six different classes of shares: Class A, Class B, Class C, Class R, Class Y and Institutional Class. 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 and Institutional Class 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. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other
18 Invesco Van Kampen Equity and Income Fund
Invesco Funds offering such shares until they convert. 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 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. | |
| Debt obligations (including convertible bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. | ||
| A security listed or traded on an exchange (except convertible bonds) 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 ask 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 ask prices. For purposes of determining net asset value 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. | ||
| Foreign securities (including foreign exchange contracts) 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 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 trade is not the current value as of the close of the NYSE. | ||
| Foreign securities 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 are 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/ask 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. | ||
| 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. | ||
| B. | 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 is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes. | |
| 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 Statement of Changes in Net Assets, or the net investment income per share and 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. |
19 Invesco Van Kampen Equity and Income Fund
| C. | 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 income are declared and paid quarterly and are recorded on ex-dividend date. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. | |
| E. | Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of 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 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. | ||
| F. | 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 the Institutional Class are charged to such 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. Prior to the Reorganization, incremental transfer agency fees which are unique to each class of shares of the Acquired Fund were charged to the operations of such class. | |
| G. | 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. | |
| H. | 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 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. | |
| I. | Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities. | |
| J. | 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. | |
| 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. |
20 Invesco Van Kampen Equity and Income Fund
| K. | Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into 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. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of 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 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. | |
| L. | Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. |
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 pays 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 $150 million | 0 | .50% | ||
| Next $100 million | 0 | .45% | ||
| Next $100 million | 0 | .40% | ||
| Over $350 million | 0 | .35% | ||
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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may 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 Sub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2012, 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 (excluding certain items discussed below) of Class A, Class B, Class C, Class R, Class Y and Institutional Class shares to 0.82%, 0.95%, 1.57%, 1.07%, 0.57% and 0.57% of average daily net assets. 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 operating expenses after fee waiver 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 the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Adviser did not waive fees and/or reimburse expenses during the period under this limitation.
Further, the Adviser has contractually agreed, through at least June 30, 2012, 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 six months ended February 29, 2012, the Adviser waived advisory fees of $242,309.
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 six months ended February 29, 2012, 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 are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 29, 2012, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.
Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A shares, Class B shares, Class C shares and Class R shares to compensate IDI for the sale, distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will incur annual fees of up to 0.25% of Class A average daily net assets, up to 1.00% each of Class B and Class C average daily net assets and up to 0.50% of Class R average daily net assets.
With respect to Class B and Class C shares, the Fund is authorized to reimburse in future years any distribution related expenses that exceed the maximum annual reimbursement rate for such class, so long as such reimbursement does not cause the Fund to exceed the Class B and Class C maximum annual reimbursement rate, respectively. With respect to Class A shares, distribution related expenses that exceed the maximum annual reimbursement rate for such class are not carried forward to future years and the Fund will not reimburse IDI for any such expenses.
IDI has contractually agreed to limit Rule 12b-1 fees to 0.38% of Class B average daily net assets through at least June 30, 2012.
12b-1 fees before fee waivers incurred under the Plan are detailed in the Statement of Operations as distribution fees. For the six months ended February 29, 2012, 12b-1 fees incurred for Class B shares were $1,767,497 after fee waivers of $2,883,811.
21 Invesco Van Kampen Equity and Income Fund
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 six months ended February 29, 2012, IDI advised the Fund that IDI retained $634,728 in front-end sales commissions from the sale of Class A shares and $3,929, $472,528 and $17,653 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.
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 February 29, 2012. 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.
During the six months ended February 29, 2012, there were no significant transfers between investment levels.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Equity Securities | $ | 7,453,177,916 | $ | 110,032,210 | $ | — | $ | 7,563,210,126 | ||||||||
| U.S. Treasury Securities | — | 892,783,996 | — | 892,783,996 | ||||||||||||
| U.S. Government Sponsored Securities | — | 130,235,120 | — | 130,235,120 | ||||||||||||
| Corporate Debt Securities | — | 2,294,884,904 | 0 | 2,294,884,904 | ||||||||||||
| Asset Backed Securities | — | 6,142,992 | — | 6,142,992 | ||||||||||||
| Municipal Obligations | — | 15,750,539 | — | 15,750,539 | ||||||||||||
| Foreign Government Debt Securities | — | 22,527,125 | — | 22,527,125 | ||||||||||||
| $ | 7,453,177,916 | $ | 3,472,356,886 | $ | 0 | $ | 10,925,534,802 | |||||||||
| Foreign Currency Contracts* | — | (935,570 | ) | — | (935,570 | ) | ||||||||||
| Futures* | 528,498 | — | — | 528,498 | ||||||||||||
| Total Investments | $ | 7,453,706,414 | $ | 3,471,421,316 | $ | 0 | $ | 10,925,127,730 | ||||||||
| * | Unrealized appreciation (depreciation) |
NOTE 4—Derivative Investments
Value of Derivative Instruments at Period-End
The table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of February 29, 2012:
| Value | ||||||||
| Risk Exposure/Derivative Type | Assets | Liabilities | ||||||
| Currency risk | ||||||||
Foreign currency contracts(a) | $ | — | $ | (935,570 | ) | |||
| Interest rate risk | ||||||||
Futures contracts(b) | $ | 579,987 | $ | (51,489 | ) | |||
| (a) | Values are disclosed on the Statement of Assets and Liabilities under Foreign currency contracts outstanding. | |
| (b) | Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s variation margin receivable is reported within the Statement of Assets and Liabilities. |
22 Invesco Van Kampen Equity and Income Fund
Effect of Derivative Instruments for the six months ended February 29, 2012
The table below summarizes the gains (losses) on derivative instruments, detailed by primary risk exposure, recognized in earnings during the period:
| Location of Gain (Loss) on | ||||||||
| Statement of Operations | ||||||||
| Foreign Currency | ||||||||
| Futures* | Contracts* | |||||||
| Realized Gain (Loss) | ||||||||
| Currency risk | $ | — | $ | 17,101,455 | ||||
| Interest rate risk | (14,170,294 | ) | — | |||||
| Change in Unrealized Appreciation (Depreciation) | ||||||||
| Currency risk | $ | — | $ | (1,030,015 | ) | |||
| Interest rate risk | 8,508,719 | — | ||||||
| Total | $ | (5,661,575 | ) | $ | 16,071,440 | |||
| * | The average notional value outstanding of futures and foreign currency contracts during the period was $501,243,984 and $323,890,363, respectively. |
| Open Futures Contracts | ||||||||||||||||
| Unrealized | ||||||||||||||||
| Number of | Expiration | Notional | Appreciation | |||||||||||||
| Long Contracts | Contracts | Month | Value | (Depreciation) | ||||||||||||
| U.S. Treasury 2 Year Notes | 797 | June-2012 | $ | 175,526,798 | $ | (51,489 | ) | |||||||||
Short Contracts | ||||||||||||||||
| U.S. Treasury 5 Year Notes | 1,169 | June-2012 | (143,987,922 | ) | 207,600 | |||||||||||
| U.S. Treasury 10 Year Notes | 798 | June-2012 | (104,500,594 | ) | 372,387 | |||||||||||
| Subtotal | $ | (248,488,516 | ) | $ | 579,987 | |||||||||||
| Total | $ | (72,961,718 | ) | $ | 528,498 | |||||||||||
| Open Foreign Currency Contracts | ||||||||||||||||||||||||
| Unrealized | ||||||||||||||||||||||||
| Settlement | Contract to | Notional | Appreciation | |||||||||||||||||||||
| Date | Counterparty | Deliver | Receive | Value | (Depreciation) | |||||||||||||||||||
| 03/15/2012 | State Street | EUR | 34,220,645 | USD | 45,412,678 | $ | 45,587,135 | $ | (174,457 | ) | ||||||||||||||
| 03/15/2012 | Bank of New York | EUR | 139,026,875 | USD | 184,537,322 | 185,205,068 | (667,746 | ) | ||||||||||||||||
| 03/15/2012 | State Street | GBP | 62,936,819 | USD | 100,014,158 | 100,107,525 | (93,367 | ) | ||||||||||||||||
| Total open foreign currency contracts | $ | 330,899,728 | $ | (935,570 | ) | |||||||||||||||||||
| Currency Abbreviations: | ||
| EUR | – Euro | |
| GBP | – British Pound Sterling | |
| USD | – U.S. Dollar | |
NOTE 5—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 six months ended February 29, 2012, the Fund engaged in securities purchases of $767,612.
NOTE 6—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended February 29, 2012, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $8,702.
23 Invesco Van Kampen Equity and Income Fund
NOTE 7—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 are eligible to participate in a retirement plan that provides 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.
During the six months ended February 29, 2012, the Fund paid legal fees of $601 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.
NOTE 8—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 9—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
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. The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, 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. Additionally, post-enactment capital loss carryovers 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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2011, which expires as follows:
| Capital Loss | ||||
| Expiration | Carryforward* | |||
| August 31, 2015 | $ | 40,242,087 | ||
| August 31, 2016 | 111,861,101 | |||
| August 31, 2017 | 102,541,594 | |||
| Total capital loss carryforward | $ | 254,644,782 | ||
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. To the extent that unrealized gains as of May 23, 2011, the date of reorganization of Invesco Balanced Fund and Invesco Basic Balanced Fund into the Fund and realized on securities held in each fund at such date of reorganization, the capital loss carryforward may be further limited for up to five years from the date of the reorganization. |
NOTE 10—Investment Securities
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 six months ended February 29, 2012 was $854,467,745 and $1,727,606,500, respectively. Cost of investments 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 Investment Securities on a Tax Basis | ||||
| Aggregate unrealized appreciation of investment securities | $ | 1,187,718,411 | ||
| Aggregate unrealized (depreciation) of investment securities | (266,412,846 | ) | ||
| Net unrealized appreciation of investment securities | $ | 921,305,565 | ||
| Cost of investments for tax purposes is $10,004,229,237. | ||||
24 Invesco Van Kampen Equity and Income Fund
NOTE 11—Share Information
| Summary of Share Activity | ||||||||||||||||
| Six months ended | Year ended | |||||||||||||||
| February 29, 2012(a) | August 31, 2011 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Sold: | ||||||||||||||||
| Class A | 41,286,990 | $ | 340,906,844 | 98,031,251 | $ | 841,524,407 | ||||||||||
| Class B | 592,792 | 4,836,267 | 4,314,780 | 35,442,243 | ||||||||||||
| Class C | 2,566,841 | 20,902,193 | 8,570,105 | 73,027,813 | ||||||||||||
| Class R | 3,652,148 | 30,295,070 | 6,592,227 | 57,106,122 | ||||||||||||
| Class Y | 8,649,858 | 72,957,572 | 21,595,593 | 186,789,017 | ||||||||||||
| Institutional Class | 7,490,587 | 60,357,807 | 12,398,629 | 103,169,510 | ||||||||||||
| Issued as reinvestment of dividends: | ||||||||||||||||
| Class A | 9,280,516 | 75,877,013 | 16,308,100 | 136,884,446 | ||||||||||||
| Class B | 1,131,517 | 9,080,520 | 2,490,833 | 20,476,183 | ||||||||||||
| Class C | 924,124 | 7,457,385 | 1,497,465 | 12,382,375 | ||||||||||||
| Class R | 213,107 | 1,750,451 | 358,603 | 3,023,225 | ||||||||||||
| Class Y | 540,444 | 4,413,947 | 1,136,447 | 9,551,241 | ||||||||||||
| Institutional Class | 287,448 | 2,352,380 | 233,353 | 1,974,351 | ||||||||||||
| Automatic conversion of Class B shares to Class A shares: | ||||||||||||||||
| Class A | 12,837,731 | 106,679,342 | 29,939,971 | 258,765,594 | ||||||||||||
| Class B | (12,851,703 | ) | (106,679,342 | ) | (30,510,407 | ) | (258,765,594 | ) | ||||||||
Issued in connection with acquisitions:(b) | ||||||||||||||||
| Class A | — | — | 65,351,925 | 588,917,667 | ||||||||||||
| Class B | — | — | 6,813,818 | 60,220,062 | ||||||||||||
| Class C | — | — | 12,039,953 | 106,937,496 | ||||||||||||
| Class R | — | — | 809,078 | 7,322,872 | ||||||||||||
| Class Y | — | — | 268,205 | 2,415,975 | ||||||||||||
| Institutional Class | — | — | 25,520 | 230,109 | ||||||||||||
| Reacquired: | ||||||||||||||||
| Class A | (113,028,697 | ) | (934,881,168 | ) | (247,798,564 | ) | (2,120,105,508 | ) | ||||||||
| Class B | (11,995,035 | ) | (95,432,977 | ) | (30,002,075 | ) | (251,349,014 | ) | ||||||||
| Class C | (14,970,111 | ) | (121,828,064 | ) | (34,522,121 | ) | (290,502,266 | ) | ||||||||
| Class R | (4,020,124 | ) | (33,420,191 | ) | (8,375,268 | ) | (72,139,936 | ) | ||||||||
| Class Y | (14,798,398 | ) | (121,103,585 | ) | (26,462,868 | ) | (221,332,211 | ) | ||||||||
| Institutional Class | (2,276,348 | ) | (18,821,342 | ) | (2,060,952 | ) | (17,485,158 | ) | ||||||||
| Net increase (decrease) in share activity | (84,486,313 | ) | $ | (694,299,878 | ) | (90,956,399 | ) | $ | (725,518,979 | ) | ||||||
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 28% 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. | |
| (b) | As of the open of business day on May 23, 2011, the Fund acquired all the net assets of Invesco Balanced Fund and Invesco Basic Balanced Fund pursuant to a plan of reorganization approved by the Trustees of the Fund on November 10, 2010 and by the shareholders of Invesco Balanced Fund and Invesco Basic Balanced Fund on April 14, 2011. The acquisition was accomplished by a tax-free exchange of 85,308,499 shares of the Fund for 11,505,036 and 53,265,217 shares outstanding of Invesco Balanced Fund and Invesco Basic Balanced Fund, respectively as of the close of business on May 20, 2011. Each class of Invesco Balanced Fund and Invesco Basic Balanced Fund was exchanged for the like class of shares of the Fund based on the relative net asset value of Invesco Balanced Fund and Invesco Basic Balanced Fund to the net asset value of the Fund on the close of business, May 20, 2011. Invesco Balanced Fund and Invesco Basic Balanced Fund’s net assets at that date of $155,118,564 and $610,925,617, respectively, including $7,987,998 and $82,271,409 of unrealized appreciation, respectively, was combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $11,740,080,547. The net assets of the Fund immediately following the acquisition were $12,506,124,728. |
25 Invesco Van Kampen Equity and Income Fund
NOTE 12—Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Ratio of | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net gains | expenses | expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (losses) on | to average | to average net | Ratio of net | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net asset | securities | Dividends | Distributions | net assets | assets without | investment | ||||||||||||||||||||||||||||||||||||||||||||||||||
| value, | Net | (both | Total from | from net | from net | Net asset | Net assets, | with fee waivers | fee waivers | income | ||||||||||||||||||||||||||||||||||||||||||||||
| beginning | investment | realized and | investment | investment | realized | Total | value, end | Total | end of period | and/or expenses | and/or expenses | to average | Portfolio | |||||||||||||||||||||||||||||||||||||||||||
| of period | income(a) | unrealized) | operations | income | gains | distributions | of period | return | (000s omitted) | absorbed | absorbed | net assets | turnover(b) | |||||||||||||||||||||||||||||||||||||||||||
| Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | $ | 8.19 | $ | 0.09 | $ | 0.61 | $ | 0.70 | $ | (0.09 | ) | $ | — | $ | (0.09 | ) | $ | 8.80 | 8.60 | %(c) | $ | 8,061,504 | 0.81 | %(d) | 0.81 | %(d) | 2.16 | %(d) | 10 | % | ||||||||||||||||||||||||||
| Year ended 08/31/11 | 7.53 | 0.15 | 0.66 | 0.81 | (0.15 | ) | — | (0.15 | ) | 8.19 | 10.78 | (c) | 7,908,623 | 0.81 | 0.81 | 1.74 | 22 | |||||||||||||||||||||||||||||||||||||||
| Eight months ended 08/31/10 | 7.79 | 0.10 | (0.28 | ) | (0.18 | ) | (0.08 | ) | — | (0.08 | ) | 7.53 | (2.40 | )(c) | 7,560,462 | 0.78 | (e) | 0.78 | (e) | 1.89 | (e) | 24 | ||||||||||||||||||||||||||||||||||
| Year ended 12/31/09 | 6.45 | 0.15 | 1.34 | 1.49 | (0.15 | ) | — | (0.15 | ) | 7.79 | 23.51 | (f) | 8,395,716 | 0.82 | 0.82 | 2.15 | 78 | |||||||||||||||||||||||||||||||||||||||
| Year ended 12/31/08 | 8.84 | 0.20 | (2.36 | ) | (2.16 | ) | (0.22 | ) | (0.01 | ) | (0.23 | ) | 6.45 | (24.78 | )(f) | 8,214,093 | 0.79 | 0.79 | 2.59 | 56 | ||||||||||||||||||||||||||||||||||||
| Year ended 12/31/07 | 9.12 | 0.22 | 0.08 | 0.30 | (0.22 | ) | (0.36 | ) | (0.58 | ) | 8.84 | 3.26 | (f) | 13,332,525 | 0.76 | 0.76 | 2.32 | 35 | ||||||||||||||||||||||||||||||||||||||
| Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 8.04 | 0.08 | 0.60 | 0.68 | (0.08 | ) | — | (0.08 | ) | 8.64 | 8.56 | (c) | 890,272 | 0.94 | (d) | 1.56 | (d) | 2.03 | (d) | 10 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 7.39 | 0.14 | 0.65 | 0.79 | (0.14 | ) | — | (0.14 | ) | 8.04 | 10.69 | (c)(g) | 1,014,527 | 0.84 | (g) | 0.98 | (g) | 1.71 | (g) | 22 | ||||||||||||||||||||||||||||||||||||
| Eight months ended 08/31/10 | 7.64 | 0.09 | (0.27 | ) | (0.18 | ) | (0.07 | ) | — | (0.07 | ) | 7.39 | (2.40 | )(c)(g) | 1,278,734 | 0.91 | (e)(g) | 0.91 | (e)(g) | 1.76 | (e)(g) | 24 | ||||||||||||||||||||||||||||||||||
| Year ended 12/31/09 | 6.33 | 0.14 | 1.32 | 1.46 | (0.15 | ) | — | (0.15 | ) | 7.64 | 23.48 | (h)(i) | 1,594,135 | 0.82 | (i) | 0.82 | (i) | 2.16 | (i) | 78 | ||||||||||||||||||||||||||||||||||||
| Year ended 12/31/08 | 8.68 | 0.20 | (2.32 | ) | (2.12 | ) | (0.22 | ) | (0.01 | ) | (0.23 | ) | 6.33 | (24.78 | )(h)(i) | 1,693,758 | 0.79 | (i) | 0.79 | (i) | 2.59 | (i) | 56 | |||||||||||||||||||||||||||||||||
| Year ended 12/31/07 | 8.97 | 0.17 | 0.08 | 0.25 | (0.18 | ) | (0.36 | ) | (0.54 | ) | 8.68 | 2.71 | (h)(i) | 2,978,302 | 1.25 | (i) | 1.25 | (i) | 1.83 | (i) | 35 | |||||||||||||||||||||||||||||||||||
| Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 8.07 | 0.06 | 0.60 | 0.66 | (0.06 | ) | — | (0.06 | ) | 8.67 | 8.21 | (c) | 1,208,027 | 1.56 | (d) | 1.56 | (d) | 1.41 | (d) | 10 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 7.42 | 0.09 | 0.65 | 0.74 | (0.09 | ) | — | (0.09 | ) | 8.07 | 9.95 | (c)(j) | 1,216,936 | 1.54 | (j) | 1.54 | (j) | 1.01 | (j) | 22 | ||||||||||||||||||||||||||||||||||||
| Eight months ended 08/31/10 | 7.68 | 0.06 | (0.27 | ) | (0.21 | ) | (0.05 | ) | — | (0.05 | ) | 7.42 | (2.81 | )(c)(j) | 1,211,089 | 1.52 | (e)(j) | 1.52 | (e)(j) | 1.15 | (e)(j) | 24 | ||||||||||||||||||||||||||||||||||
| Year ended 12/31/09 | 6.36 | 0.09 | 1.33 | 1.42 | (0.10 | ) | — | (0.10 | ) | 7.68 | 22.63 | (i)(k) | 1,375,516 | 1.56 | (i) | 1.56 | (i) | 1.40 | (i) | 78 | ||||||||||||||||||||||||||||||||||||
| Year ended 12/31/08 | 8.72 | 0.14 | (2.32 | ) | (2.18 | ) | (0.17 | ) | (0.01 | ) | (0.18 | ) | 6.36 | (25.33 | )(i)(k) | 1,340,367 | 1.50 | (i) | 1.50 | (i) | 1.88 | (i) | 56 | |||||||||||||||||||||||||||||||||
| Year ended 12/31/07 | 9.01 | 0.14 | 0.08 | 0.22 | (0.15 | ) | (0.36 | ) | (0.51 | ) | 8.72 | 2.41 | (k) | 2,334,402 | 1.51 | 1.51 | 1.57 | 35 | ||||||||||||||||||||||||||||||||||||||
| Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 8.23 | 0.08 | 0.61 | 0.69 | (0.08 | ) | — | (0.08 | ) | 8.84 | 8.44 | (c) | 194,312 | 1.06 | (d) | 1.06 | (d) | 1.91 | (d) | 10 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 7.57 | 0.13 | 0.66 | 0.79 | (0.13 | ) | — | (0.13 | ) | 8.23 | 10.45 | (c) | 182,135 | 1.06 | 1.06 | 1.49 | 22 | |||||||||||||||||||||||||||||||||||||||
| Eight months ended 08/31/10 | 7.83 | 0.09 | (0.28 | ) | (0.19 | ) | (0.07 | ) | — | (0.07 | ) | 7.57 | (2.51 | )(c) | 172,143 | 1.03 | (e) | 1.03 | (e) | 1.64 | (e) | 24 | ||||||||||||||||||||||||||||||||||
| Year ended 12/31/09 | 6.48 | 0.13 | 1.35 | 1.48 | (0.13 | ) | — | (0.13 | ) | 7.83 | 23.25 | (l) | 169,713 | 1.07 | 1.07 | 1.88 | 78 | |||||||||||||||||||||||||||||||||||||||
| Year ended 12/31/08 | 8.87 | 0.18 | (2.36 | ) | (2.18 | ) | (0.20 | ) | (0.01 | ) | (0.21 | ) | 6.48 | (24.89 | )(l) | 148,399 | 1.04 | 1.04 | 2.35 | 56 | ||||||||||||||||||||||||||||||||||||
| Year ended 12/31/07 | 9.16 | 0.19 | 0.08 | 0.27 | (0.20 | ) | (0.36 | ) | (0.56 | ) | 8.87 | 2.87 | (l) | 192,906 | 1.01 | 1.01 | 2.07 | 35 | ||||||||||||||||||||||||||||||||||||||
| Class Y(m) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 8.20 | 0.10 | 0.61 | 0.71 | (0.10 | ) | — | (0.10 | ) | 8.81 | 8.74 | (c) | 404,014 | 0.56 | (d) | 0.56 | (d) | 2.41 | (d) | 10 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 7.54 | 0.17 | 0.67 | 0.84 | (0.18 | ) | — | (0.18 | ) | 8.20 | 11.04 | (c) | 422,009 | 0.56 | 0.56 | 1.99 | 22 | |||||||||||||||||||||||||||||||||||||||
| Eight months ended 08/31/10 | 7.79 | 0.11 | (0.28 | ) | (0.17 | ) | (0.08 | ) | — | (0.08 | ) | 7.54 | (2.15 | )(c) | 414,203 | 0.53 | (e) | 0.53 | (e) | 2.15 | (e) | 24 | ||||||||||||||||||||||||||||||||||
| Year ended 12/31/09 | 6.45 | 0.16 | 1.35 | 1.51 | (0.17 | ) | — | (0.17 | ) | 7.79 | 23.82 | (n) | 530,010 | 0.57 | 0.57 | 2.34 | 78 | |||||||||||||||||||||||||||||||||||||||
| Year ended 12/31/08 | 8.84 | 0.22 | (2.36 | ) | (2.14 | ) | (0.24 | ) | (0.01 | ) | (0.25 | ) | 6.45 | (24.60 | )(n) | 358,154 | 0.54 | 0.54 | 2.85 | 56 | ||||||||||||||||||||||||||||||||||||
| Year ended 12/31/07 | 9.12 | 0.24 | 0.08 | 0.32 | (0.24 | ) | (0.36 | ) | (0.60 | ) | 8.84 | 3.52 | (n) | 392,848 | 0.51 | 0.51 | 2.57 | 35 | ||||||||||||||||||||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 8.20 | 0.11 | 0.61 | 0.72 | (0.11 | ) | — | (0.11 | ) | 8.81 | 8.83 | (c) | 216,193 | 0.40 | (d) | 0.40 | (d) | 2.57 | (d) | 10 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 7.54 | 0.19 | 0.65 | 0.84 | (0.18 | ) | — | (0.18 | ) | 8.20 | 11.16 | (c) | 156,096 | 0.39 | 0.39 | 2.16 | 22 | |||||||||||||||||||||||||||||||||||||||
| Eight months ended 08/31/10(o) | 7.59 | 0.03 | (0.04 | ) | (0.01 | ) | (0.04 | ) | — | (0.04 | ) | 7.54 | (0.13 | )(c) | 63,598 | 0.45 | (e) | 0.45 | (e) | 1.79 | (e) | 24 | ||||||||||||||||||||||||||||||||||
| (a) | Calculated using average shares outstanding. | |
| (b) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the period ending August 31, 2011 the portfolio turnover calculation excludes the value of securities purchased of $602,192,170 and sold of $70,835,642 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco Balanced Fund and Invesco Basic Balanced Fund into the Fund. | |
| (c) | 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. | |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $7,778,916, $935,373, $1,180,902, $183,884, $379,985, and $193,558 for Class A, Class B, Class C, Class R, Class Y and Institutional Class shares, respectively. | |
| (e) | Annualized. | |
| (f) | Assumes reinvestment of all distributions for the period and does not include payment of the maximum sales charge of 5.75% or contingent deferred sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be imposed on certain redemptions made within eighteen months of purchase. If the sales charges were included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 0.25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
| (g) | 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 of 0.28% and 0.38% for the year ended August 31, 2011 and eight months ended August 31, 2010, respectively. | |
| (h) | Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 5%, charged on certain redemptions made within one year of purchase and declining to 0% after the fifth year. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
| (i) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of less than 1%. | |
| (j) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.97% and 0.99% for the year ended August 31, 2011 and the eight months ended August 31, 2010, respectively. | |
| (k) | Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 1%, charged on certain redemptions made within one year of purchase. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
| (l) | Assumes reinvestment of all distributions for the period. These returns include combined Rule 12b-1 fees and service fees of up to 0.50% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption on Fund shares. | |
| (m) | On June 1, 2010, the Fund’s former Class I shares were reorganized into Class Y shares. | |
| (n) | Assumes reinvestment of all distributions for the period. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption on Fund shares. | |
| (o) | Commencement date of June 1, 2010. |
26 Invesco Van Kampen Equity and Income 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, and redemption fees, 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 September 1, 2011, through February 29, 2012.
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, contingent deferred sales charges on redemptions, and redemption fees, 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.
| HYPOTHETICAL | ||||||||||||||||||||||||||||||
| ACTUAL | (5% annual return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Ending | Expenses | Annualized | |||||||||||||||||||||||||
| Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||||||||||||||||||||
| Class | (09/01/11) | (02/29/12)1 | Period2 | (02/29/12) | Period2 | Ratio | ||||||||||||||||||||||||
| A | $ | 1,000.00 | $ | 1,086.00 | $ | 4.20 | $ | 1,020.84 | $ | 4.07 | 0.81 | % | ||||||||||||||||||
| B | 1,000.00 | 1,085.60 | 4.87 | 1,020.19 | 4.72 | 0.94 | ||||||||||||||||||||||||
| C | 1,000.00 | 1,082.10 | 8.08 | 1,017.11 | 7.82 | 1.56 | ||||||||||||||||||||||||
| R | 1,000.00 | 1,084.40 | 5.49 | 1,019.59 | 5.32 | 1.06 | ||||||||||||||||||||||||
| Y | 1,000.00 | 1,087.40 | 2.91 | 1,022.08 | 2.82 | 0.56 | ||||||||||||||||||||||||
| Institutional | 1,000.00 | 1,088.30 | 2.06 | 1,022.89 | 2.00 | 0.40 | ||||||||||||||||||||||||
| 1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2011 through February 29, 2012, 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 182/366 to reflect the most recent fiscal half year. |
27 Invesco Van Kampen Equity and Income Fund
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Invesco privacy policy
You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.
Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.
Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.
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 811-09913 and 333-36074.
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 12 months ended June 30, 2011, 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 U.S. 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.
| VK-EQI-SAR-1 | Invesco Distributors, Inc. |
Invesco Van Kampen Growth and Income Fund
Semiannual Report to Shareholders § February 29, 2012
Nasdaq:
A: ACGIX § B: ACGJX § C: ACGKX § R: ACGLX § Y: ACGMX § Institutional: ACGQX
| 2 | Fund Performance | |
| 4 | Letters to Shareholders | |
| 5 | Schedule of Investments | |
| 8 | Financial Statements | |
| 10 | Notes to Financial Statements | |
| 17 | Financial Highlights | |
| 18 | Fund Expenses | |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
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 | ||
Fund Performance
Performance summary
Fund vs. Indexes
Cumulative total returns, 8/31/11 to 2/29/12, 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 | 10.96 | % | ||
| Class B Shares | 10.98 | |||
| Class C Shares | 10.60 | |||
| Class R Shares | 10.76 | |||
| Class Y Shares | 11.03 | |||
| Institutional Class Shares | 11.17 | |||
S&P 500 Index▼ (Broad Market Index) | 13.30 | |||
Russell 1000 Value Index▼(Style-Specific Index) | 12.84 | |||
Lipper Large-Cap Value Funds Index▼(Peer Group Index) | 11.75 | |||
Source(s): ▼Lipper Inc. | ||||
| 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. | ||
| The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes. | ||
| 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. | ||
| 2 | Invesco Van Kampen Growth and Income Fund |
| Average Annual Total Returns | ||||
| As of 2/29/12, including maximum applicable sales charges | ||||
Class A Shares | ||||
| Inception (8/1/46) | 9.21 | % | ||
| 10 Years | 4.23 | |||
| 5 Years | -0.50 | |||
| 1 Year | -7.35 | |||
Class B Shares | ||||
| Inception (8/2/93) | 8.74 | % | ||
| 10 Years | 4.51 | |||
| 5 Years | 0.26 | |||
| 1 Year | -6.77 | |||
Class C Shares | ||||
| Inception (8/2/93) | 8.30 | % | ||
| 10 Years | 4.07 | |||
| 5 Years | -0.09 | |||
| 1 Year | -3.65 | |||
Class R Shares | ||||
| Inception (10/1/02) | 7.24 | % | ||
| 5 Years | 0.38 | |||
| 1 Year | -2.27 | |||
Class Y Shares | ||||
| Inception (10/19/04) | 5.35 | % | ||
| 5 Years | 0.88 | |||
| 1 Year | -1.77 | |||
Institutional Class Shares | ||||
| 10 Years | 4.90 | % | ||
| 5 Years | 0.79 | |||
| 1 Year | -1.55 | |||
Effective June 1, 2010, Class A, Class B, Class C, Class R and Class I shares of the predecessor fund, Van Kampen Growth and Income Fund, advised by Van Kampen Asset Management were reorganized into Class A, Class B, Class C, Class R and Class Y shares, respectively, of Invesco Van Kampen Growth and Income Fund. Returns shown above for Class A, Class B, Class C, Class R and Class Y shares are blended returns of the predecessor fund and Invesco Van Kampen Growth and Income Fund. Share class returns will differ from the predecessor fund because of different expenses.
Institutional Class shares incepted on June 1, 2010. Performance shown prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.
| Average Annual Total Returns | ||||
| As of 12/31/11, the most recent calendar quarter-end, including maximum applicable sales charges | ||||
Class A Shares | ||||
| Inception (8/1/46) | 9.13 | % | ||
| 10 Years | 3.59 | |||
| 5 Years | -2.07 | |||
| 1 Year | -7.48 | |||
Class B Shares | ||||
| Inception (8/2/93) | 8.43 | % | ||
| 10 Years | 3.86 | |||
| 5 Years | -1.36 | |||
| 1 Year | -6.92 | |||
Class C Shares | ||||
| Inception (8/2/93) | 7.99 | % | ||
| 10 Years | -3.43 | |||
| 5 Years | -1.67 | |||
| 1 Year | -3.76 | |||
Class R Shares | ||||
| Inception (10/1/02) | 6.62 | % | ||
| 5 Years | -1.21 | |||
| 1 Year | -2.33 | |||
Class Y Shares | ||||
| Inception (10/19/04) | 4.50 | % | ||
| 5 Years | -0.72 | |||
| 1 Year | -1.89 | |||
Institutional Class Shares | ||||
| 10 Years | 4.25 | % | ||
| 5 Years | -0.83 | |||
| 1 Year | -1.72 | |||
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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. 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 R, Class Y and Institutional Class shares was 0.84%, 0.84%,
1.58%, 1.09%, 0.59% and 0.40%, 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. For shares purchased prior to June 1, 2010, the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the sixth year. For shares purchased on or after June 1, 2010, the CDSC on Class B shares declines from 5% 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 Y and Institutional Class 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.
| 3 | Invesco Van Kampen Growth and Income Fund |
Letters to Shareholders
 Bruce Crockett | Dear Fellow Shareholders: | |
| Throughout 2011, we experienced volatile, challenging markets that presented both opportunities and risks for investors. Based on everything I’ve read, this year could potentially be just as interesting, with continued economic uncertainty and market volatility. | ||
| With this in mind, you’ll want to stay informed regarding the markets and keep up to date with news that affects your investment portfolio. Invesco's website, invesco.com/us, provides a wealth of information about your investments and news regarding global markets. | ||
| Regardless of economic conditions and market trends, the Invesco Funds Board of Trustees remains committed to putting your interests first. Throughout 2011, we worked to manage costs, and this remains a continuing focus of your Board. We will continue to oversee the funds with the strong sense of responsibility for your money and your continued trust that we’ve always maintained. |
I would like to close by thanking Bob Baker for his distinguished 30-year service with the Invesco Funds Board and his unflagging commitment to our funds’ shareholders. As always, I encourage you to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving you in 2012.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Independent Chair
Invesco Funds Board of Trustees
 Philip Taylor | Dear Shareholders: | |
| This report provides important information about your Fund, including its short- and long-term performance. Also, this report includes a listing of investments held by your Fund at the close of the reporting period. | ||
| Investors are likely to confront both opportunities and challenges in 2012. As we saw in 2011, market sentiment can change suddenly and dramatically – and certainly without advance notice – depending on economic developments and world events. Similarly, your own situation, needs and goals can change, requiring adjustments in your financial strategy. | ||
| In addition to meeting with your financial adviser regularly to discuss your individual situation, you also may find it helpful to stay abreast of market trends and developments. Doing so may provide reassurance in times of economic uncertainty and market volatility such as we saw last year and may see again this year. |
Invesco can help you stay informed about your investments and market trends. On our website, invesco.com/us, we provide timely market updates and commentary from many of our portfolio managers and other investment professionals. Also on our website, you can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer at invesco.com/us.
If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.
All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.
Sincerely,
Philip Taylor
Senior Managing Director, Invesco Ltd.
Senior Managing Director, Invesco Ltd.
| 4 | Invesco Van Kampen Growth and Income Fund |
Schedule of Investments(a)
February 29, 2012
(Unaudited)
| Shares | Value | |||||||
| Common Stocks & Other Equity Interests–92.27% | ||||||||
| Agricultural Products–1.06% | ||||||||
| Archer-Daniels-Midland Co. | 2,436,221 | $ | 76,010,095 | |||||
| Asset Management & Custody Banks–1.65% | ||||||||
| Northern Trust Corp. | 1,270,355 | 56,416,466 | ||||||
| State Street Corp. | 1,470,285 | 62,090,135 | ||||||
| 118,506,601 | ||||||||
| Cable & Satellite–4.11% | ||||||||
| Comcast Corp.–Class A | 5,953,759 | 174,921,439 | ||||||
| Time Warner Cable Inc. | 1,522,464 | 120,792,294 | ||||||
| 295,713,733 | ||||||||
| Computer Hardware–2.09% | ||||||||
Dell Inc.(b) | 4,037,173 | 69,843,093 | ||||||
| Hewlett-Packard Co. | 3,200,261 | 80,998,606 | ||||||
| 150,841,699 | ||||||||
| Data Processing & Outsourced Services–0.88% | ||||||||
| Western Union Co. | 3,635,576 | 63,513,513 | ||||||
| Diversified Banks–2.59% | ||||||||
| Comerica Inc. | 1,613,946 | 47,918,057 | ||||||
| U.S. Bancorp | 1,843,039 | 54,185,347 | ||||||
| Wells Fargo & Co. | 2,693,867 | 84,291,098 | ||||||
| 186,394,502 | ||||||||
| Diversified Chemicals–1.03% | ||||||||
| PPG Industries, Inc. | 815,666 | 74,429,523 | ||||||
| Diversified Support Services–0.76% | ||||||||
| Cintas Corp. | 1,421,449 | 54,811,073 | ||||||
| Drug Retail–0.94% | ||||||||
| Walgreen Co. | 2,033,334 | 67,425,355 | ||||||
| Electric Utilities–3.38% | ||||||||
| American Electric Power Co., Inc. | 2,163,844 | 81,382,173 | ||||||
| Edison International | 1,467,123 | 61,428,440 | ||||||
| Entergy Corp. | 576,638 | 38,421,390 | ||||||
| FirstEnergy Corp. | 1,398,062 | 61,920,166 | ||||||
| 243,152,169 | ||||||||
| Food Distributors–1.30% | ||||||||
| Sysco Corp. | 3,189,428 | 93,832,972 | ||||||
| Health Care Distributors–0.75% | ||||||||
| Cardinal Health, Inc. | 1,302,748 | 54,129,179 | ||||||
| Health Care Equipment–1.55% | ||||||||
| Medtronic, Inc. | 2,933,850 | 111,838,362 | ||||||
| Home Improvement Retail–1.27% | ||||||||
| Home Depot, Inc. (The) | 1,928,089 | 91,719,194 | ||||||
| Hotels, Resorts & Cruise Lines–0.86% | ||||||||
| Carnival Corp. | 2,047,751 | 62,026,378 | ||||||
| Household Products–3.04% | ||||||||
Energizer Holdings, Inc.(b) | 512,089 | 39,149,204 | ||||||
| Procter & Gamble Co. (The) | 2,665,727 | 179,989,887 | ||||||
| 219,139,091 | ||||||||
| Industrial Conglomerates–6.63% | ||||||||
| General Electric Co. | 16,559,225 | 315,453,236 | ||||||
| Tyco International Ltd. | 3,127,736 | 162,079,280 | ||||||
| 477,532,516 | ||||||||
| Industrial Machinery–1.36% | ||||||||
| Ingersoll-Rand PLC (Ireland) | 2,458,554 | 98,047,134 | ||||||
| Insurance Brokers–2.71% | ||||||||
| Marsh & McLennan Cos., Inc. | 6,243,733 | 194,804,470 | ||||||
| Integrated Oil & Gas–6.14% | ||||||||
| ConocoPhillips | 566,614 | 43,374,302 | ||||||
| Exxon Mobil Corp. | 1,076,496 | 93,116,904 | ||||||
| Hess Corp. | 1,384,664 | 89,892,387 | ||||||
| Occidental Petroleum Corp. | 754,736 | 78,771,796 | ||||||
| Royal Dutch Shell PLC–ADR (United Kingdom) | 1,869,875 | 136,669,164 | ||||||
| 441,824,553 | ||||||||
| Integrated Telecommunication Services–1.21% | ||||||||
| Verizon Communications Inc. | 2,280,021 | 86,891,600 | ||||||
| Internet Software & Services–2.60% | ||||||||
eBay Inc.(b) | 5,238,198 | 187,213,197 | ||||||
| Investment Banking & Brokerage–1.03% | ||||||||
| Charles Schwab Corp. (The) | 5,318,421 | 73,819,683 | ||||||
| Investment Companies–Exchange Traded Funds–0.37% | ||||||||
| SPDR S&P Homebuilders ETF | 1,326,800 | 26,735,020 | ||||||
| IT Consulting & Other Services–1.01% | ||||||||
Amdocs Ltd.(b) | 2,363,120 | 72,476,890 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 Invesco Van Kampen Growth and Income Fund
| Shares | Value | |||||||
| Managed Health Care–2.44% | ||||||||
| Cigna Corp. | 932,555 | $ | 41,135,001 | |||||
| UnitedHealth Group Inc. | 2,414,655 | 134,617,016 | ||||||
| 175,752,017 | ||||||||
| Movies & Entertainment–3.71% | ||||||||
| Time Warner Inc. | 3,453,034 | 128,487,395 | ||||||
| Viacom Inc.–Class B | 2,915,947 | 138,857,396 | ||||||
| 267,344,791 | ||||||||
| Oil & Gas Equipment & Services–2.05% | ||||||||
| Baker Hughes Inc. | 1,111,664 | 55,894,466 | ||||||
Cameron International Corp.(b) | 809,405 | 45,091,953 | ||||||
| Schlumberger Ltd. | 598,655 | 46,461,614 | ||||||
| 147,448,033 | ||||||||
| Oil & Gas Exploration & Production–3.51% | ||||||||
| Anadarko Petroleum Corp. | 2,056,106 | 172,959,637 | ||||||
| Devon Energy Corp. | 937,870 | 68,755,250 | ||||||
WPX Energy Inc.(b) | 609,908 | 11,075,929 | ||||||
| 252,790,816 | ||||||||
| Oil & Gas Storage & Transportation–0.76% | ||||||||
| Williams Cos., Inc. (The) | 1,834,957 | 54,828,515 | ||||||
| Other Diversified Financial Services–6.32% | ||||||||
| Citigroup Inc. | 3,814,404 | 127,095,941 | ||||||
| JPMorgan Chase & Co. | 8,352,352 | 327,746,293 | ||||||
| 454,842,234 | ||||||||
| Packaged Foods & Meats–2.36% | ||||||||
| Kraft Foods Inc.–Class A | 1,881,474 | 71,627,715 | ||||||
| Unilever N.V.–New York Shares (Netherlands) | 2,955,790 | 98,457,365 | ||||||
| 170,085,080 | ||||||||
| Personal Products–1.58% | ||||||||
| Avon Products, Inc. | 6,107,438 | 114,148,016 | ||||||
| Pharmaceuticals–6.93% | ||||||||
| Abbott Laboratories | 508,240 | 28,771,466 | ||||||
| Bristol-Myers Squibb Co. | 3,603,357 | 115,919,995 | ||||||
| Eli Lilly & Co. | 548,671 | 21,529,850 | ||||||
Hospira, Inc.(b) | 415,244 | 14,790,991 | ||||||
| Merck & Co., Inc. | 3,372,911 | 128,744,013 | ||||||
| Pfizer Inc. | 8,966,497 | 189,193,087 | ||||||
| 498,949,402 | ||||||||
| Property & Casualty Insurance–0.74% | ||||||||
| Chubb Corp. (The) | 784,138 | 53,290,018 | ||||||
| Regional Banks–3.53% | ||||||||
| BB&T Corp. | 2,327,657 | 68,083,967 | ||||||
| Fifth Third Bancorp | 3,998,114 | 54,414,332 | ||||||
| PNC Financial Services Group, Inc. | 2,218,342 | 132,035,716 | ||||||
| 254,534,015 | ||||||||
| Semiconductor Equipment–0.87% | ||||||||
| Applied Materials, Inc. | 5,111,714 | 62,567,379 | ||||||
| Semiconductors–0.93% | ||||||||
| Intel Corp. | 2,486,953 | 66,849,297 | ||||||
| Soft Drinks–1.98% | ||||||||
Coca-Cola Co. (The) | 1,011,973 | 70,696,434 | ||||||
| PepsiCo, Inc. | 1,146,227 | 72,143,527 | ||||||
| 142,839,961 | ||||||||
| Systems Software–2.49% | ||||||||
| Microsoft Corp. | 5,648,263 | 179,275,868 | ||||||
| Wireless Telecommunication Services–1.75% | ||||||||
| Vodafone Group PLC–ADR (United Kingdom) | 4,646,369 | 125,870,136 | ||||||
| Total Common Stocks & Other Equity Interests (Cost $5,869,800,515) | 6,644,244,080 | |||||||
| Money Market Funds–7.35% | ||||||||
Liquid Assets Portfolio–Institutional Class(c) | 264,619,255 | 264,619,255 | ||||||
Premier Portfolio–Institutional Class(c) | 264,619,256 | 264,619,256 | ||||||
| Total Money Market Funds (Cost $529,238,511) | 529,238,511 | |||||||
| TOTAL INVESTMENTS–99.62% (Cost $6,399,039,026) | 7,173,482,591 | |||||||
| OTHER ASSETS LESS LIABILITIES–0.38% | 27,322,349 | |||||||
| NET ASSETS–100.00% | $ | 7,200,804,940 | ||||||
Investment Abbreviations:
| ADR | – American Depositary Receipt | |
| ETF | – Exchange-Traded Fund |
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. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Van Kampen Growth and Income Fund
By sector, based on Net Assets
as of February 29, 2012
| Financials | 18.6 | % | ||
| Energy | 12.5 | |||
| Consumer Staples | 12.3 | |||
| Health Care | 11.7 | |||
| Information Technology | 11.0 | |||
| Consumer Discretionary | 10.0 | |||
| Industrials | 8.8 | |||
| Utilities | 3.4 | |||
| Telecommunication Services | 3.0 | |||
| Materials | 1.0 | |||
| Money Market Funds Plus Other Assets Less Liabilities | 7.7 | |||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Van Kampen Growth and Income Fund
Statement of Assets and Liabilities
February 29, 2012
(Unaudited)
| Assets: | ||||
| Investments, at value (Cost $5,869,800,515) | $ | 6,644,244,080 | ||
| Investments in affiliated money market funds, at value and cost | 529,238,511 | |||
| Total investments, at value (Cost $6,399,039,026) | 7,173,482,591 | |||
| Foreign currencies, at value (Cost $18,250,513) | 18,487,192 | |||
| Receivable for: | ||||
| Investments sold | 13,346,066 | |||
| Fund shares sold | 9,059,463 | |||
| Dividends | 19,174,196 | |||
| Investment for trustee deferred compensation and retirement plans | 39,107 | |||
| Other assets | 77,413 | |||
| Total assets | 7,233,666,028 | |||
| Liabilities: | ||||
| Payable for: | ||||
| Investments purchased | 16,988,669 | |||
| Fund shares reacquired | 9,555,964 | |||
| Foreign currency contracts outstanding | 883,015 | |||
| Accrued fees to affiliates | 4,691,564 | |||
| Accrued other operating expenses | 489,547 | |||
| Trustee deferred compensation and retirement plans | 252,329 | |||
| Total liabilities | 32,861,088 | |||
| Net assets applicable to shares outstanding | $ | 7,200,804,940 | ||
| Net assets consist of: | ||||
| Shares of beneficial interest | $ | 6,800,234,705 | ||
| Undistributed net investment income | 29,220,388 | |||
| Undistributed net realized gain (loss) | (402,447,381 | ) | ||
| Unrealized appreciation | 773,797,228 | |||
| $ | 7,200,804,940 | |||
| Net Assets: | ||||
| Class A | $ | 4,380,961,405 | ||
| Class B | $ | 150,751,085 | ||
| Class C | $ | 262,471,860 | ||
| Class R | $ | 165,517,351 | ||
| Class Y | $ | 1,776,084,914 | ||
| Institutional Class | $ | 465,018,325 | ||
| Shares outstanding, $0.01 par value per share, with an unlimited number of shares authorized: | ||||
| Class A | 220,945,593 | |||
| Class B | 7,655,823 | |||
| Class C | 13,360,519 | |||
| Class R | 8,344,910 | |||
| Class Y | 89,502,814 | |||
| Institutional Class | 23,404,416 | |||
| Class A: | ||||
| Net asset value per share | $ | 19.83 | ||
| Maximum offering price per share (Net asset value of $19.83 divided by 94.50%) | $ | 20.98 | ||
| Class B: | ||||
| Net asset value and offering price per share | $ | 19.69 | ||
| Class C: | ||||
| Net asset value and offering price per share | $ | 19.65 | ||
| Class R: | ||||
| Net asset value and offering price per share | $ | 19.83 | ||
| Class Y: | ||||
| Net asset value and offering price per share | $ | 19.84 | ||
| Institutional Class: | ||||
| Net asset value and offering price per share | $ | 19.87 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Van Kampen Growth and Income Fund
Statement of Operations
For the six months ended February 29, 2012
(Unaudited)
| Investment income: | ||||
| Dividends (net of foreign withholding taxes of $1,253,842) | $ | 87,835,851 | ||
| Dividends from affiliated money market funds | 251,522 | |||
| Total investment income | 88,087,373 | |||
| Expenses: | ||||
| Advisory fees | 11,947,621 | |||
| Administrative services fees | 349,444 | |||
| Custodian fees | 73,672 | |||
| Distribution fees: | ||||
| Class A | 5,258,732 | |||
| Class B | 169,581 | |||
| Class C | 1,195,996 | |||
| Class R | 385,781 | |||
| Transfer agent fees — A, B, C, R and Y | 6,786,419 | |||
| Transfer agent fees — Institutional | 108,479 | |||
| Trustees’ and officers’ fees and benefits | 203,557 | |||
| Other | 403,421 | |||
| Total expenses | 26,882,703 | |||
| Less: Fees waived and expense offset arrangement(s) | (290,645 | ) | ||
| Net expenses | 26,592,058 | |||
| Net investment income | 61,495,315 | |||
| Realized and unrealized gain (loss) from: | ||||
| Net realized gain (loss) from: | ||||
| Investment securities | (50,619,072 | ) | ||
| Foreign currencies | (63,195 | ) | ||
| Foreign currency contracts | 16,546,031 | |||
| (34,136,236 | ) | |||
| Change in net unrealized appreciation (depreciation) of: | ||||
| Investment securities | 704,050,758 | |||
| Foreign currencies | 236,678 | |||
| Foreign currency contracts | (995,264 | ) | ||
| 703,292,172 | ||||
| Net realized and unrealized gain | 669,155,936 | |||
| Net increase in net assets resulting from operations | $ | 730,651,251 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Van Kampen Growth and Income Fund
Statement of Changes in Net Assets
For the six months ended February 29, 2012 and the year ended August 31, 2011.
(Unaudited)
| Six months | ||||||||
| ended | Year ended | |||||||
| February 29, | August 31, | |||||||
| 2012 | 2011 | |||||||
| Operations: | ||||||||
| Net investment income | $ | 61,495,315 | $ | 89,477,094 | ||||
| Net realized gain (loss) | (34,136,236 | ) | 390,544,941 | |||||
| Change in net unrealized appreciation | 703,292,172 | 329,001,327 | ||||||
| Net increase in net assets resulting from operations | 730,651,251 | 809,023,362 | ||||||
| Distributions to shareholders from net investment income: | ||||||||
| Class A | (32,379,880 | ) | (49,752,247 | ) | ||||
| Class B | (1,260,878 | ) | (2,289,778 | ) | ||||
| Class C | (1,042,975 | ) | (994,066 | ) | ||||
| Class R | (998,761 | ) | (1,231,024 | ) | ||||
| Class Y | (14,204,158 | ) | (20,659,588 | ) | ||||
| Institutional Class | (3,208,555 | ) | (2,010,774 | ) | ||||
| Total distributions from net investment income | (53,095,207 | ) | (76,937,477 | ) | ||||
| Share transactions–net: | ||||||||
| Class A | (192,527,042 | ) | (497,901,045 | ) | ||||
| Class B | (37,043,362 | ) | (91,521,932 | ) | ||||
| Class C | (20,637,241 | ) | (44,889,378 | ) | ||||
| Class R | 2,300,844 | 11,454,379 | ||||||
| Class Y | 71,083,228 | 198,824,176 | ||||||
| Institutional Class | 119,040,372 | 279,255,628 | ||||||
| Net increase (decrease) in net assets resulting from share transactions | (57,783,201 | ) | (144,778,172 | ) | ||||
| Net increase in net assets | 619,772,843 | 587,307,713 | ||||||
| Net assets: | ||||||||
| Beginning of period | 6,581,032,097 | 5,993,724,384 | ||||||
| End of period (includes undistributed net investment income of $29,220,388 and $20,820,280, respectively) | $ | 7,200,804,940 | $ | 6,581,032,097 | ||||
Notes to Financial Statements
February 29, 2012
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco Van Kampen Growth and Income Fund (the “Fund”), is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (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 twelve 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 to seek income and long-term growth of capital.
The Fund currently consists of six different classes of shares: Class A, Class B, Class C, Class R, Class Y and Institutional Class. 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 and Institutional Class 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. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other
10 Invesco Van Kampen Growth and Income Fund
Invesco Funds offering such shares until they convert. 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 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. | |
| A security listed or traded on an exchange (except convertible bonds) 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 ask 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 ask prices. For purposes of determining net asset value 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 bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. | ||
| Foreign securities (including foreign exchange contracts) 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 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 trade is not the current value as of the close of the NYSE. Foreign securities 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 are 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/ask 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. | ||
| 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. | ||
| B. | 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 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 Statement of Changes in Net Assets, or the net investment income per share and 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. | ||
| C. | 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 |
11 Invesco Van Kampen Growth and Income Fund
| 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 income are declared and paid quarterly and are recorded on ex-dividend date. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. | |
| E. | Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of 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 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. | ||
| F. | 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 the Institutional Class are charged to such 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. Prior to the Reorganization, incremental transfer agency fees which are unique to each class of shares of the Acquired Fund were charged to the operations of such class. | |
| G. | 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. | |
| H. | 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 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. | |
| I. | 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. | |
| 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. | ||
| J. | Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into 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. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of 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 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. |
12 Invesco Van Kampen Growth and Income Fund
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 pays 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 $150 million | 0 | .50% | ||
| Next $100 million | 0 | .45% | ||
| Next $100 million | 0 | .40% | ||
| Over $350 million | 0 | .35% | ||
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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2012, 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 and Institutional Class shares to 0.88%, 1.63%, 1.63%, 1.13%, 0.63% and 0.63% of average daily net assets. 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 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 the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Adviser did not waive fees and/or reimburse expenses during the period under this limitation.
Further, the Adviser has contractually agreed, through at least June 30, 2012, 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 six months ended February 29, 2012, the Adviser waived advisory fees of $287,886.
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 six months ended February 29, 2012, 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 are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 29, 2012, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.
Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A, Class B, Class C and Class R shares to compensate IDI for the sale, distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will incur annual fees of up to 0.25% of Class A average daily net assets, up to 1.00% each of Class B and Class C average daily net assets and up to 0.50% of Class R average daily net assets.
With respect to Class B and Class C shares, the Fund is authorized to reimburse in future years any distribution related expenses that exceed the maximum annual reimbursement rate for such class, so long as such reimbursement does not cause the Fund to exceed the Class B and Class C maximum annual reimbursement rate, respectively. With respect to Class A shares, distribution related expenses that exceed the maximum annual reimbursement rate for such class are not carried forward to future years and the Fund will not reimburse IDI for any such expenses.
For the six months ended February 29, 2012, expenses incurred under these agreements 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 six months ended February 29, 2012, IDI advised the Fund that IDI retained $144,622 in front-end sales commissions from the sale of Class A shares and $1,252, $78,894 and $5,280 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.
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. |
13 Invesco Van Kampen Growth and Income Fund
| 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 February 29, 2012. 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.
During the six months ended February 29, 2012, there were no significant transfers between investment levels.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Equity Securities | $ | 7,173,482,591 | $ | — | $ | — | $ | 7,173,482,591 | ||||||||
| Foreign Currency Contracts* | — | (883,015 | ) | — | (883,015 | ) | ||||||||||
| Total Investments | $ | 7,173,482,591 | $ | (883,015 | ) | $ | — | $ | 7,172,599,576 | |||||||
| * | Unrealized appreciation (depreciation). |
NOTE 4—Derivative Investments
Value of Derivative Instruments at Period-End
The table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of February 29, 2012:
| Value | ||||||||
| Risk Exposure/Derivative Type | Assets | Liabilities | ||||||
| Currency risk | ||||||||
Foreign Currency Contracts(a) | $ | — | $ | (883,015 | ) | |||
| (a) | Values are disclosed on the Statement of Assets and Liabilities under Foreign currency contracts outstanding. |
Effect of Derivative Instruments for the six months ended February 29, 2012
The table below summarizes the gains (losses) on derivative instruments, detailed by primary risk exposure, recognized in earnings during the period:
| Location of Gain (Loss) on | ||||
| Statement of Operations | ||||
| Foreign Currency | ||||
| Contracts* | ||||
| Realized Gain | ||||
| Currency risk | $ | 16,546,031 | ||
| Change in Unrealized Appreciation (Depreciation) | ||||
| Currency risk | (995,264 | ) | ||
| Total | $ | 15,550,767 | ||
| * | The average notional value outstanding of foreign currency contracts was $309,035,488. |
| Open Foreign Currency Contracts | ||||||||||||||||||||||
| Unrealized | ||||||||||||||||||||||
| Settlement | Contract to | Notional | Appreciation | |||||||||||||||||||
| Date | Counterparty | Deliver | Receive | Value | (Depreciation) | |||||||||||||||||
| 03/15/12 | Bank of New York | EUR | 129,601,281 | USD | 172,026,260 | $ | 172,648,735 | $ | (622,475 | ) | ||||||||||||
| 03/15/12 | State Street Bank | EUR | 33,385,006 | USD | 44,303,740 | 44,473,937 | (170,197 | ) | ||||||||||||||
| 03/15/12 | State Street Bank | GBP | 60,898,977 | USD | 96,775,783 | $ | 96,866,126 | $ | (90,343 | ) | ||||||||||||
| $ | (883,015 | ) | ||||||||||||||||||||
Currency Abbreviations:
| EUR | – Euro | |
| GBP | – British Pound Sterling | |
| USD | – U.S. Dollar |
14 Invesco Van Kampen Growth and Income Fund
NOTE 5—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 six months ended February 29, 2012, the Fund engaged in securities purchases of $757,894.
NOTE 6—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended February 29, 2012, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $2,759.
NOTE 7—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 are eligible to participate in a retirement plan that provides 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.
During the six months ended February 29, 2012, the Fund paid legal fees of $494 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.
NOTE 8—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 9—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
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. The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, 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. Additionally, post-enactment capital loss carryovers 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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2011, which expires as follows:
| Capital Loss Carryforward* | ||||
| Capital Loss | ||||
| Expiration | Carryforward* | |||
| August 31, 2016 | $ | 12,303,518 | ||
| August 31, 2017 | 344,772,500 | |||
| Total capital loss carryforward | $ | 357,076,018 | ||
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. |
15 Invesco Van Kampen Growth and Income Fund
NOTE 10—Investment Securities
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 six months ended February 29, 2012 was $823,060,614 and $1,042,266,291, respectively. Cost of investments 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 Investment Securities on a Tax Basis | ||||
| Aggregate unrealized appreciation of investment securities | $ | 942,551,966 | ||
| Aggregate unrealized (depreciation) of investment securities | (179,231,278 | ) | ||
| Net unrealized appreciation of investment securities | $ | 763,320,688 | ||
| Cost of investments for tax purposes is $6,410,161,903. | ||||
NOTE 11—Share Information
| Summary of Share Activity | ||||||||||||||||
| Six months ended | Year ended | |||||||||||||||
| February 29, 2012(a) | August 31, 2011 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Sold: | ||||||||||||||||
| Class A | 27,040,233 | $ | 478,893,834 | 36,245,786 | $ | 693,700,987 | ||||||||||
| Class B | 54,962 | 1,004,584 | 438,546 | 8,100,844 | ||||||||||||
| Class C | 346,670 | 6,337,147 | 1,063,972 | 20,372,767 | ||||||||||||
| Class R | 1,479,210 | 26,953,257 | 2,659,405 | 51,394,097 | ||||||||||||
| Class Y | 13,341,638 | 247,603,220 | 35,839,552 | 683,384,836 | ||||||||||||
| Institutional Class | 8,196,809 | 152,603,794 | 17,685,144 | 338,759,065 | ||||||||||||
| Issued as reinvestment of dividends: | ||||||||||||||||
| Class A | 1,682,117 | 30,477,073 | 2,499,969 | 46,491,378 | ||||||||||||
| Class B | 65,618 | 1,179,519 | 115,560 | 2,128,328 | ||||||||||||
| Class C | 51,742 | 931,992 | 48,175 | 883,466 | ||||||||||||
| Class R | 54,961 | 997,479 | 65,955 | 1,229,378 | ||||||||||||
| Class Y | 756,012 | 13,700,691 | 1,043,596 | 19,488,200 | ||||||||||||
| Institutional Class | 176,759 | 3,208,446 | 105,285 | 2,010,645 | ||||||||||||
| Automatic conversion of Class B shares to Class A shares: | ||||||||||||||||
| Class A | 1,298,083 | 23,500,990 | 3,922,878 | 76,286,897 | ||||||||||||
| Class B | (1,290,184 | ) | (23,500,990 | ) | (3,952,448 | ) | (76,286,897 | ) | ||||||||
Issued in connection with acquisitions:(b) | ||||||||||||||||
| Class A | — | — | 2,699,773 | 54,844,342 | ||||||||||||
| Class B | — | — | 1,176,109 | 23,721,474 | ||||||||||||
| Class C | — | — | 191,857 | 3,863,281 | ||||||||||||
| Class Y | — | — | 3,646,445 | 74,111,693 | ||||||||||||
| Reacquired: | ||||||||||||||||
| Class A | (39,448,240 | ) | (725,398,939 | ) | (71,652,843 | ) | (1,369,224,649 | ) | ||||||||
| Class B | (855,207 | ) | (15,726,475 | ) | (2,608,096 | ) | (49,185,681 | ) | ||||||||
| Class C | (1,531,168 | ) | (27,906,380 | ) | (3,720,137 | ) | (70,008,892 | ) | ||||||||
| Class R | (1,373,038 | ) | (25,649,892 | ) | (2,146,765 | ) | (41,169,096 | ) | ||||||||
| Class Y | (10,301,338 | ) | (190,220,683 | ) | (29,884,311 | ) | (578,160,553 | ) | ||||||||
| Institutional Class | (1,996,308 | ) | (36,771,868 | ) | (3,366,863 | ) | (61,514,082 | ) | ||||||||
| Net increase (decrease) in share activity | (2,250,669 | ) | $ | (57,783,201 | ) | (7,883,456 | ) | $ | (144,778,172 | ) | ||||||
| (a) | There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund and owns 22% of the outstanding shares of the Fund. IDI has an agreement with this entity to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to this entity, which is 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 this entity are also owned beneficially. | |
| (b) | As of the opening of business on May 23, 2011, the Fund acquired all the net assets of Invesco Fundamental Value Fund and Invesco Large Cap Relative Value Fund pursuant to a plan of reorganization approved by the Trustees of the Fund on November 10, 2010 and by the shareholders of Invesco Fundamental Value Fund and Invesco Large Cap Relative Value Fund on April 14, 2011. The acquisitions were accomplished by a tax-free exchange of 7,714,184 shares of the Fund for 3,780,748 shares outstanding of Invesco Fundamental Value Fund and 10,106,294 shares outstanding of Invesco Large Cap Relative Fund as of the close of business on May 20, 2011. Invesco Fundamental Value Fund’s net assets at that date of $42,883,547 including $7,514,659 of unrealized appreciation and Invesco Large Cap Relative Value Fund’s net assets at that date of $113,657,243 including $3,426,387 of unrealized appreciation, were combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $7,418,140,055. The net assets of the Fund immediately following the acquisition were $7,574,680,845. |
16 Invesco Van Kampen Growth and Income Fund
NOTE 12—Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Ratio of | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net gains | expenses | expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (losses) | to average | to average net | Ratio of net | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net asset | on securities | Dividends | Distributions | net assets | assets without | investment | ||||||||||||||||||||||||||||||||||||||||||||||||||
| value, | Net | (both | Total from | from net | from net | Net asset | Net assets, | with fee waivers | fee waivers | income | ||||||||||||||||||||||||||||||||||||||||||||||
| beginning | investment | realized and | investment | investment | realized | Total | value, end | Total | end of period | and/or expenses | and/or expenses | to average | Portfolio | |||||||||||||||||||||||||||||||||||||||||||
| of period | income(a) | unrealized) | operations | income | gains | distributions | of period | return | (000s omitted) | absorbed | absorbed | net assets | turnover(b) | |||||||||||||||||||||||||||||||||||||||||||
| Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | $ | 18.01 | $ | 0.16 | $ | 1.80 | $ | 1.96 | $ | (0.14 | ) | $ | — | $ | (0.14 | ) | $ | 19.83 | 10.96 | %(c) | $ | 4,380,961 | 0.84 | %(d) | 0.85 | %(d) | 1.78 | %(d) | 13 | % | ||||||||||||||||||||||||||
| Year ended 08/31/11 | 16.06 | 0.24 | 1.91 | 2.15 | (0.20 | ) | — | (0.20 | ) | 18.01 | 13.37 | (c) | 4,149,537 | 0.83 | 0.84 | 1.23 | 23 | |||||||||||||||||||||||||||||||||||||||
| Nine months ended 08/31/10 | 17.19 | 0.18 | (1.13 | ) | (0.95 | ) | (0.18 | ) | — | (0.18 | ) | 16.06 | (5.60 | )(c) | 4,122,779 | 0.74 | (e) | 0.74 | (e) | 1.36 | (e) | 23 | ||||||||||||||||||||||||||||||||||
| Year ended 11/30/09 | 13.87 | 0.23 | 3.34 | 3.57 | (0.25 | ) | — | (0.25 | ) | 17.19 | 26.24 | (f) | 4,496,159 | 0.88 | 0.88 | 1.58 | 51 | |||||||||||||||||||||||||||||||||||||||
| Year ended 11/30/08 | 22.72 | 0.33 | (7.86 | ) | (7.53 | ) | (0.37 | ) | (0.95 | ) | (1.32 | ) | 13.87 | (35.05 | )(f) | 4,416,052 | 0.79 | 0.79 | 1.78 | 42 | ||||||||||||||||||||||||||||||||||||
| Year ended 11/30/07 | 22.62 | 0.36 | 1.21 | 1.57 | (0.39 | ) | (1.08 | ) | (1.47 | ) | 22.72 | 7.26 | (f) | 7,793,361 | 0.77 | 0.77 | 1.58 | 26 | ||||||||||||||||||||||||||||||||||||||
| Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 17.88 | 0.16 | 1.79 | 1.95 | (0.14 | ) | — | (0.14 | ) | 19.69 | 10.98 | (c)(g) | 150,751 | 0.80 | (d)(g) | 0.81 | (d)(g) | 1.82 | (d)(g) | 13 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 15.93 | 0.23 | 1.90 | 2.13 | (0.18 | ) | — | (0.18 | ) | 17.88 | 13.36 | (c)(g) | 173,129 | 0.83 | (g) | 0.84 | (g) | 1.23 | (g) | 23 | ||||||||||||||||||||||||||||||||||||
| Nine months ended 08/31/10 | 17.05 | 0.16 | (1.12 | ) | (0.96 | ) | (0.16 | ) | — | (0.16 | ) | 15.93 | (5.69 | )(c)(g) | 231,193 | 0.89 | (e)(g) | 0.89 | (e)(g) | 1.21 | (e)(g) | 23 | ||||||||||||||||||||||||||||||||||
| Year ended 11/30/09 | 13.76 | 0.22 | 3.32 | 3.54 | (0.25 | ) | — | (0.25 | ) | 17.05 | 26.32 | (h)(i) | 320,577 | 0.89 | (i) | 0.89 | (i) | 1.59 | (i) | 51 | ||||||||||||||||||||||||||||||||||||
| Year ended 11/30/08 | 22.57 | 0.32 | (7.81 | ) | (7.49 | ) | (0.37 | ) | (0.95 | ) | (1.32 | ) | 13.76 | (35.09 | )(h)(i) | 365,277 | 0.84 | (i) | 0.84 | (i) | 1.72 | (i) | 42 | |||||||||||||||||||||||||||||||||
| Year ended 11/30/07 | 22.47 | 0.34 | 1.20 | 1.54 | (0.36 | ) | (1.08 | ) | (1.44 | ) | 22.57 | 7.18 | (h)(i) | 777,590 | 0.85 | (i) | 0.85 | (i) | 1.50 | (i) | 26 | |||||||||||||||||||||||||||||||||||
| Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 17.84 | 0.10 | 1.78 | 1.88 | (0.07 | ) | — | (0.07 | ) | 19.65 | 10.60 | (c)(j) | 262,472 | 1.54 | (d)(j) | 1.55 | (d)(j) | 1.08 | (d)(j) | 13 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 15.91 | 0.09 | 1.90 | 1.99 | (0.06 | ) | — | (0.06 | ) | 17.84 | 12.52 | (c)(j) | 258,606 | 1.57 | (j) | 1.58 | (j) | 0.49 | (j) | 23 | ||||||||||||||||||||||||||||||||||||
| Nine months ended 08/31/10 | 17.03 | 0.08 | (1.12 | ) | (1.04 | ) | (0.08 | ) | — | (0.08 | ) | 15.91 | (6.13 | )(c) | 269,051 | 1.49 | (e) | 1.49 | (e) | 0.61 | (e) | 23 | ||||||||||||||||||||||||||||||||||
| Year ended 11/30/09 | 13.74 | 0.12 | 3.32 | 3.44 | (0.15 | ) | — | (0.15 | ) | 17.03 | 25.36 | (i)(k) | 316,283 | 1.62 | (i) | 1.62 | (i) | 0.84 | (i) | 51 | ||||||||||||||||||||||||||||||||||||
| Year ended 11/30/08 | 22.53 | 0.20 | (7.81 | ) | (7.61 | ) | (0.23 | ) | (0.95 | ) | (1.18 | ) | 13.74 | (35.54 | )(i)(k) | 301,306 | 1.51 | (i) | 1.51 | (i) | 1.06 | (i) | 42 | |||||||||||||||||||||||||||||||||
| Year ended 11/30/07 | 22.43 | 0.20 | 1.21 | 1.41 | (0.23 | ) | (1.08 | ) | (1.31 | ) | 22.53 | 6.53 | (i)(k) | 591,037 | 1.48 | (i) | 1.48 | (i) | 0.87 | (i) | 26 | |||||||||||||||||||||||||||||||||||
| Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 18.02 | 0.14 | 1.79 | 1.93 | (0.12 | ) | — | (0.12 | ) | 19.83 | 10.76 | (c) | 165,517 | 1.09 | (d) | 1.10 | (d) | 1.53 | (d) | 13 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 16.07 | 0.19 | 1.92 | 2.11 | (0.16 | ) | — | (0.16 | ) | 18.02 | 13.08 | (c) | 147,453 | 1.08 | 1.09 | 0.98 | 23 | |||||||||||||||||||||||||||||||||||||||
| Nine months ended 08/31/10 | 17.19 | 0.14 | (1.11 | ) | (0.97 | ) | (0.15 | ) | — | (0.15 | ) | 16.07 | (5.72 | )(c) | 122,188 | 0.99 | (e) | 0.99 | (e) | 1.11 | (e) | 23 | ||||||||||||||||||||||||||||||||||
| Year ended 11/30/09 | 13.87 | 0.18 | 3.35 | 3.53 | (0.21 | ) | — | (0.21 | ) | 17.19 | 26.00 | (l) | 107,371 | 1.13 | 1.13 | 1.29 | 51 | |||||||||||||||||||||||||||||||||||||||
| Year ended 11/30/08 | 22.73 | 0.29 | (7.88 | ) | (7.59 | ) | (0.32 | ) | (0.95 | ) | (1.27 | ) | 13.87 | (35.25 | )(l) | 78,522 | 1.04 | 1.04 | 1.53 | 42 | ||||||||||||||||||||||||||||||||||||
| Year ended 11/30/07 | 22.62 | 0.30 | 1.22 | 1.52 | (0.33 | ) | (1.08 | ) | (1.41 | ) | 22.73 | 7.03 | (l) | 140,227 | 1.02 | 1.02 | 1.33 | 26 | ||||||||||||||||||||||||||||||||||||||
| Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 18.03 | 0.19 | 1.78 | 1.97 | (0.16 | ) | — | (0.16 | ) | 19.84 | 11.03 | (c) | 1,776,085 | 0.59 | (d) | 0.60 | (d) | 2.03 | (d) | 13 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 16.08 | 0.28 | 1.92 | 2.20 | (0.25 | ) | — | (0.25 | ) | 18.03 | 13.64 | (c) | 1,544,968 | 0.58 | 0.59 | 1.48 | 23 | |||||||||||||||||||||||||||||||||||||||
| Nine months ended 08/31/10 | 17.21 | 0.21 | (1.13 | ) | (0.92 | ) | (0.21 | ) | — | (0.21 | ) | 16.08 | (5.41 | )(c) | 1,206,652 | 0.49 | (e) | 0.49 | (e) | 1.61 | (e) | 23 | ||||||||||||||||||||||||||||||||||
| Year ended 11/30/09 | 13.88 | 0.26 | 3.35 | 3.61 | (0.28 | ) | — | (0.28 | ) | 17.21 | 26.60 | (m) | 1,095,692 | 0.63 | 0.63 | 1.81 | 51 | |||||||||||||||||||||||||||||||||||||||
| Year ended 11/30/08 | 22.74 | 0.38 | (7.87 | ) | (7.49 | ) | (0.42 | ) | (0.95 | ) | (1.37 | ) | 13.88 | (34.90 | )(m) | 844,058 | 0.54 | 0.54 | 2.04 | 42 | ||||||||||||||||||||||||||||||||||||
| Year ended 11/30/07 | 22.63 | 0.41 | 1.23 | 1.64 | (0.45 | ) | (1.08 | ) | (1.53 | ) | 22.74 | 7.57 | (m) | 1,185,286 | 0.52 | 0.52 | 1.83 | 26 | ||||||||||||||||||||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 18.05 | 0.20 | 1.80 | 2.00 | (0.18 | ) | — | (0.18 | ) | 19.87 | 11.17 | (c) | 465,018 | 0.44 | (d) | 0.45 | (d) | 2.18 | (d) | 13 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 16.08 | 0.32 | 1.92 | 2.24 | (0.27 | ) | — | (0.27 | ) | 18.05 | 13.87 | (c) | 307,338 | 0.39 | 0.40 | 1.67 | 23 | |||||||||||||||||||||||||||||||||||||||
| Nine months ended 08/31/10(n) | 16.48 | 0.05 | (0.39 | ) | (0.34 | ) | (0.06 | ) | — | (0.06 | ) | 16.08 | (2.05 | )(c) | 41,861 | 0.45 | (e) | 0.45 | (e) | 1.31 | (e) | 23 | ||||||||||||||||||||||||||||||||||
| (a) | Calculated using average shares outstanding. | |
| (b) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year August 31, 2011, the portfolio calculation excludes the value of securities purchased of $ 138,016,999 and sold of $13,000,923 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco Fundamental Value Fund and Invesco Large Cap Relative Value Fund into the Fund. | |
| (c) | 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. | |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $4,233,487, $158,652, $252,989, $155,160, $1,598,665 and $358,627 for Class A, Class B, Class C, Class R, Class Y and Institutional Class, respectively. | |
| (e) | Annualized. | |
| (f) | Assumes reinvestment of all distributions for the period and does not include payment of the maximum sales charge of 5.75% or contingent deferred sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be imposed on certain redemptions made within eighteen months of purchase. If the sales charges were included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 0.25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of the Fund shares. | |
| (g) | 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 of 0.22%, 0.25% and 0.40% for the six months ended February 29, 2012, the year ended August 31, 2011 and nine months ended August 31, 2010, respectively. | |
| (h) | Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 5%, charged on certain redemptions made within one year of purchase and declining to 0% after the fifth year. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
| (i) | 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 of less than 1%. | |
| (j) | 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 of 0.95% and 0.99% for the six months ended February 29, 2012 and year ended August 31, 2011, respectively. | |
| (k) | Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 1%, charged on certain redemptions made within one year of purchase. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
| (l) | Assumes reinvestment of all distributions for the period. These returns include combined Rule 12b-1 fees and service fees of up to 0.50% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
| (m) | Assumes reinvestment of all distributions for the period. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
| (n) | Commencement date of June 1, 2010. |
17 Invesco Van Kampen Growth and Income 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, and redemption fees, 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 September 1, 2011 through February 29, 2012.
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, contingent deferred sales charges on redemptions, and redemption fees, 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.
| HYPOTHETICAL | ||||||||||||||||||||||||||||||
| ACTUAL | (5% annual return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Ending | Expenses | Annualized | |||||||||||||||||||||||||
| Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||||||||||||||||||||
| Class | (09/01/11) | (02/29/12)1 | Period2 | (02/29/12) | Period2 | Ratio | ||||||||||||||||||||||||
| A | $ | 1,000.00 | $ | 1,109.60 | $ | 4.41 | $ | 1,020.69 | $ | 4.22 | 0.84 | % | ||||||||||||||||||
| B | 1,000.00 | 1,109.80 | 4.20 | 1,020.89 | 4.02 | 0.80 | ||||||||||||||||||||||||
| C | 1,000.00 | 1,106.00 | 8.06 | 1,017.21 | 7.72 | 1.54 | ||||||||||||||||||||||||
| R | 1,000.00 | 1,107.60 | 5.71 | 1,019.44 | 5.47 | 1.09 | ||||||||||||||||||||||||
| Y | 1,000.00 | 1,110.30 | 3.10 | 1,021.93 | 2.97 | 0.59 | ||||||||||||||||||||||||
| Institutional | 1,000.00 | 1,111.70 | 2.31 | 1,022.68 | 2.21 | 0.44 | ||||||||||||||||||||||||
| 1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2011 through February 29, 2012, 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 182/366 to reflect the most recent fiscal half year. |
18 Invesco Van Kampen Growth and Income Fund
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Invesco privacy policy
You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.
Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.
Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.
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 811-09913 and 333-36074.
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 12 months ended June 30, 2011, 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 U.S. 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. |
VK-GRI-SAR-1 Invesco Distributors, Inc.
Invesco Van Kampen Pennsylvania
Tax Free Income Fund
Semiannual Report to Shareholders § February 29, 2012
Nasdaq:
A: VKMPX § B: VKPAX § C: VKPCX § Y: VKPYX
| 2 | Fund Performance | |
| 4 | Letters to Shareholders | |
| 5 | Schedule of Investments | |
| 10 | Financial Statements | |
| 12 | Notes to Financial Statements | |
| 18 | Financial Highlights | |
| 19 | Fund Expenses | |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
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 | ||
Fund Performance
Performance summary
Fund vs. Indexes
Cumulative total returns, 8/31/11 to 2/29/12, 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 | 7.12 | % | ||
| Class B Shares | 7.30 | |||
| Class C Shares | 6.71 | |||
| Class Y Shares | 7.24 | |||
Barclays Municipal Bond Index▼ (Broad Market Index) | 5.67 | |||
Barclays Pennsylvania Municipal Index■ (Style-Specific Index) | 5.84 | |||
| Source(s): ▼Lipper Inc.; ■Barclays via FactSet Research Systems Inc. | ||
The Barclays Municipal Bond Index is an unmanaged index considered representative of the tax-exempt bond market.
The Barclays Pennsylvania Municipal Index tracks the performance of Pennsylvania issued investment grade municipal bonds with maturities greater than 2 years.
The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
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.
2 Invesco Van Kampen Pennsylvania Tax Free Income Fund
Average Annual Total Returns
As of 2/29/12, including maximum applicable sales charges
| After Taxes | ||||||||||||||||
| on Distributions | ||||||||||||||||
| Before | After Taxes on | and Sale of | ||||||||||||||
| Taxes | Distributions | Fund Shares | ||||||||||||||
| Class A Shares | ||||||||||||||||
| Inception (5/1/87) | 5.95% | 5.93% | 5.91% | |||||||||||||
| 10 Years | 3.70 | 3.68 | 3.75 | |||||||||||||
| 5 Years | 2.69 | 2.68 | 2.89 | |||||||||||||
| 1 Year | 7.96 | 7.96 | 6.67 | |||||||||||||
| Class B Shares | ||||||||||||||||
| Inception (5/3/93) | 4.35% | 4.33% | 4.36% | |||||||||||||
| 10 Years | 3.68 | 3.66 | 3.68 | |||||||||||||
| 5 Years | 3.05 | 3.04 | 3.16 | |||||||||||||
| 1 Year | 8.98 | 8.98 | 7.39 | |||||||||||||
| Class C Shares | ||||||||||||||||
| Inception (8/13/93) | 3.78% | 3.77% | 3.80% | |||||||||||||
| 10 Years | 3.46 | 3.44 | 3.47 | |||||||||||||
| 5 Years | 2.92 | 2.92 | 3.01 | |||||||||||||
| 1 Year | 11.54 | 11.54 | 8.80 | |||||||||||||
| Class Y Shares | ||||||||||||||||
| 10 Years | 4.26% | 4.23% | 4.26% | |||||||||||||
| 5 Years | 3.79 | 3.79 | 3.87 | |||||||||||||
| 1 Year | 13.67 | 13.67 | 10.55 | |||||||||||||
Average Annual Total Returns
As of 12/31/11, the most recent calendar quarter-end, including maximum applicable sales charges
| After Taxes | ||||||||||||||||
| on Distributions | ||||||||||||||||
| Before | After Taxes on | and Sale of | ||||||||||||||
| Taxes | Distributions | Fund Shares | ||||||||||||||
| Class A Shares | ||||||||||||||||
| Inception (5/1/87) | 5.85% | 5.83% | 5.83% | |||||||||||||
| 10 Years | 3.63 | 3.61 | 3.71 | |||||||||||||
| 5 Years | 2.21 | 2.21 | 2.49 | |||||||||||||
| 1 Year | 4.58 | 4.58 | 4.46 | |||||||||||||
| Class B Shares | ||||||||||||||||
| Inception (5/3/93) | 4.20% | 4.19% | 4.24% | |||||||||||||
| 10 Years | 3.59 | 3.57 | 3.62 | |||||||||||||
| 5 Years | 2.52 | 2.51 | 2.72 | |||||||||||||
| 1 Year | 5.07 | 5.07 | 4.81 | |||||||||||||
| Class C Shares | ||||||||||||||||
| Inception (8/13/93) | 3.63% | 3.62% | 3.68% | |||||||||||||
| 10 Years | 3.38 | 3.36 | 3.41 | |||||||||||||
| 5 Years | 2.44 | 2.43 | 2.60 | |||||||||||||
| 1 Year | 7.92 | 7.92 | 6.43 | |||||||||||||
| Class Y Shares | ||||||||||||||||
| 10 Years | 4.17% | 4.15% | 4.20% | |||||||||||||
| 5 Years | 3.30 | 3.29 | 3.45 | |||||||||||||
| 1 Year | 10.01 | 10.01 | 8.16 | |||||||||||||
Effective June 1, 2010, Class A, Class B and Class C shares of the predecessor fund, Van Kampen Pennsylvania Tax Free Income Fund, advised by Van Kampen Asset Management were reorganized into Class A, Class B and Class C shares, respectively, of Invesco Van Kampen Pennsylvania Tax Free Income Fund. Returns shown above for Class A, Class B and Class C shares are blended returns of the predecessor fund and Invesco Van Kampen Pennsylvania Tax Free Income Fund. Share class returns will differ from the predecessor fund because of different expenses.
Class Y shares incepted on June 1, 2010. Performance shown prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.
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. Before tax performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. 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 and Class Y shares was 1.02%, 1.02%, 1.77% and 0.77%, 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 4.75% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. For shares purchased prior to June 1, 2010, the CDSC on Class B shares declines from 5% at the
time of purchase to 0% at the beginning of the seventh year. For shares purchased on or after June 1, 2010, the CDSC on Class B shares declines from 5% 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 Y 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.
After-tax returns are calculated using the historical highest individual federal marginal income tax rate. They do not reflect the effect of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their shares in tax-deferred accounts such as 401(k)s or IRAs. The Fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future.
3 Invesco Van Kampen Pennsylvania Tax Free Income Fund
Letters to Shareholders
Bruce Crockett
Dear Fellow Shareholders:
Throughout 2011, we experienced volatile, challenging markets that presented both opportunities and risks for investors. Based on everything I’ve read, this year could potentially be just as interesting, with continued economic uncertainty and market volatility.
With this in mind, you’ll want to stay informed regarding the markets and keep up to date with news that affects your investment portfolio. Invesco’s website, invesco.com/us, provides a wealth of information about your investments and news regarding global markets.
Regardless of economic conditions and market trends, the Invesco Funds Board of Trustees remains committed to putting your interests first. Throughout 2011, we worked to manage costs, and this remains a continuing focus of your Board. We will continue to oversee the funds with the strong sense of responsibility for your money and your continued trust that we’ve always maintained.
I would like to close by thanking Bob Baker for his distinguished 30-year service with the Invesco Funds Board and his unflagging commitment to our funds’ shareholders. As always, I encourage you to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving you in 2012.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Independent Chair
Invesco Funds Board of Trustees
Philip Taylor
Dear Shareholders:
This report provides important information about your Fund, including its short- and long-term performance. Also, this report includes a listing of investments held by your Fund at the close of the reporting period.
Investors are likely to confront both opportunities and challenges in 2012. As we saw in 2011, market sentiment can change suddenly and dramatically – and certainly without advance notice – depending on economic developments and world events. Similarly, your own situation, needs and goals can change, requiring adjustments in your financial strategy.
In addition to meeting with your financial adviser regularly to discuss your individual situation, you also may find it helpful to stay abreast of market trends and developments. Doing so may provide reassurance in times of economic uncertainty and market volatility such as we saw last year and may see again this year.
Invesco can help you stay informed about your investments and market trends. On our website, invesco.com/us, we provide timely market updates and commentary from many of our portfolio managers and other investment professionals. Also on our website, you can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer at invesco.com/us.
If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.
All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.
Sincerely,
Philip Taylor
Senior Managing Director, Invesco Ltd.
Senior Managing Director, Invesco Ltd.
4 Invesco Van Kampen Pennsylvania Tax Free Income Fund
Schedule of Investments
February 29, 2012
(Unaudited)
| Principal | ||||||||||||||||
| Interest | Maturity | Amount | ||||||||||||||
| Rate | Date | (000) | Value | |||||||||||||
| Municipal Obligations–100.96% | ||||||||||||||||
| Pennsylvania–89.26% | ||||||||||||||||
| Allegheny (County of) Higher Education Building Authority (Duquesne University); | ||||||||||||||||
Series 1998, Ref. University RB (INS–AMBAC)(a) | 5.50 | % | 03/01/20 | $ | 1,750 | $ | 1,991,482 | |||||||||
| Series 2011 A, University RB | 5.50 | % | 03/01/31 | 550 | 624,558 | |||||||||||
| Allegheny (County of) Higher Education Building Authority (Robert Morris University); Series 2008 A, University RB | 6.00 | % | 10/15/38 | 1,000 | 1,036,930 | |||||||||||
| Allegheny (County of) Hospital Development Authority (Ohio Valley General Hospital); Series 2005 A, RB | 5.00 | % | 04/01/25 | 1,600 | 1,448,160 | |||||||||||
| Allegheny (County of) Hospital Development Authority (University of Pittsburgh Medical Center); Series 2009, RB | 5.63 | % | 08/15/39 | 1,250 | 1,378,625 | |||||||||||
Allegheny (County of) Industrial Development Authority (AFCO Cargo PIT, LLC); Series 1999, Cargo Facilities Lease RB(b) | 6.63 | % | 09/01/24 | 935 | 831,505 | |||||||||||
| Allegheny (County of) Industrial Development Authority (Residential Resources, Inc.); Series 2006, Lease RB | 5.10 | % | 09/01/26 | 980 | 986,262 | |||||||||||
| Allegheny (County of) Redevelopment Authority (Pittsburgh Mills); Series 2004, Tax Allocation RB | 5.60 | % | 07/01/23 | 1,220 | 1,222,220 | |||||||||||
Allegheny (County of) Residential Finance Authority; Series 2006 TT, Single Family Mortgage RB (CEP–GNMA)(b) | 5.00 | % | 05/01/35 | 1,110 | 1,134,853 | |||||||||||
Allegheny (County of); Series 2008 C-61, Unlimited Tax GO Bonds (INS–AGC)(a) | 5.00 | % | 12/01/33 | 500 | 542,710 | |||||||||||
Allegheny Valley Joint School District; Series 2004 A, Unlimited Tax GO Bonds (INS–NATL)(a) | 5.00 | % | 11/01/28 | 1,500 | 1,571,895 | |||||||||||
Beaver (County of); Series 2009, Unlimited Tax GO Notes (INS–AGM)(a) | 5.55 | % | 11/15/31 | 1,390 | 1,543,790 | |||||||||||
Berks (County of) Industrial Development Authority (One Douglassville); Series 2007 A, Ref. First Mortgage RB(b) | 6.13 | % | 11/01/34 | 470 | 432,522 | |||||||||||
| Berks (County of) Municipal Authority (Albright College); Series 2004, RB | 5.50 | % | 10/01/18 | 1,895 | 1,908,511 | |||||||||||
Bethlehem Area School District; Series 2010, Unlimited Tax GO Bonds (INS–AGM)(a) | 5.25 | % | 01/15/26 | 1,000 | 1,135,230 | |||||||||||
| Bucks (County of) Industrial Development Authority (Ann’s Choice, Inc. Facility); | ||||||||||||||||
| Series 2005 A, Retirement Community RB | 6.13 | % | 01/01/25 | 1,500 | 1,510,110 | |||||||||||
| Series 2005 A, Retirement Community RB | 5.90 | % | 01/01/27 | 1,000 | 999,940 | |||||||||||
| Bucks (County of) Industrial Development Authority (Lutheran Community Telford Center); Series 2007, RB | 5.75 | % | 01/01/37 | 2,000 | 1,749,620 | |||||||||||
| Central Bradford Progress Authority (Guthrie Healthcare System); Series 2011, RB | 5.38 | % | 12/01/41 | 700 | 770,238 | |||||||||||
Centre (County of) Hospital Authority (Mt. Nittany Medical Center); Series 2009, RB (INS–AGC)(a) | 6.13 | % | 11/15/39 | 1,000 | 1,052,860 | |||||||||||
| Chartiers Valley Industrial & Commercial Development Authority (Asbury Health Center); | ||||||||||||||||
| Series 2006, Ref. First Mortgage RB | 5.25 | % | 12/01/15 | 500 | 514,880 | |||||||||||
| Series 2006, Ref. First Mortgage RB | 5.75 | % | 12/01/22 | 900 | 914,292 | |||||||||||
| Cumberland (County of) Municipal Authority (Asbury Pennsylvania Obligated Group); Series 2010, RB | 6.00 | % | 01/01/40 | 870 | 877,482 | |||||||||||
| Cumberland (County of) Municipal Authority (Association of Independent Colleges & Universities of Pennsylvania Financing Program-Dickinson College); Series 2009, RB | 5.00 | % | 11/01/39 | 750 | 819,023 | |||||||||||
| Cumberland (County of) Municipal Authority (Diakon Lutheran Ministries); Series 2007, RB | 5.00 | % | 01/01/36 | 1,000 | 1,004,620 | |||||||||||
| Cumberland (County of) Municipal Authority (Messiah Village); Series 2008 A, RB | 5.63 | % | 07/01/28 | 1,000 | 1,011,860 | |||||||||||
| Dauphin (County of) General Authority (Pinnacle Health System); Series 2009 A, Health System RB | 6.00 | % | 06/01/36 | 2,215 | 2,435,082 | |||||||||||
| Dauphin (County of) General Authority (Riverfront Office); Series 1998, Office & Parking RB | 6.00 | % | 01/01/25 | 1,105 | 907,570 | |||||||||||
Delaware (County of) Authority (Cabrini College); Series 1999, College RB (INS–Radian)(a) | 5.75 | % | 07/01/23 | 220 | 220,235 | |||||||||||
| Delaware (County of) Authority (Neumann College); Series 2008, College RB | 6.25 | % | 10/01/38 | 225 | 241,002 | |||||||||||
Delaware (County of) Industrial Development Authority (Aqua Pennsylvania, Inc.); Series 2005 A, Water Facilities RB (INS–NATL)(a)(b) | 5.00 | % | 11/01/38 | 1,500 | 1,545,765 | |||||||||||
Delaware (County of) Industrial Development Authority (Philadelphia Suburban Water); Series 2001, Water Facilities RB (INS–AMBAC)(a)(b) | 5.35 | % | 10/01/31 | 2,500 | 2,522,625 | |||||||||||
| Delaware River Port Authority; Series 2010 D, RB | 5.00 | % | 01/01/40 | 1,000 | 1,068,400 | |||||||||||
| Delaware Valley Regional Financial Authority; | ||||||||||||||||
| Series 2002, RB | 5.75 | % | 07/01/17 | 3,535 | 4,119,194 | |||||||||||
| Series 2002, RB | 5.75 | % | 07/01/32 | 1,000 | 1,157,310 | |||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 Invesco Van Kampen Pennsylvania Tax Free Income Fund
| Principal | ||||||||||||||||
| Interest | Maturity | Amount | ||||||||||||||
| Rate | Date | (000) | Value | |||||||||||||
Pennsylvania–(continued) | ||||||||||||||||
| Erie (City of) Higher Education Building Authority (Mercyhurst College); | ||||||||||||||||
| Series 2004 B, Ref. College RB | 5.00 | % | 03/15/23 | $ | 1,000 | $ | 1,034,030 | |||||||||
| Series 2008, College RB | 5.50 | % | 03/15/38 | 500 | 526,180 | |||||||||||
| Franklin (County of) Industrial Development Authority (Chambersburg Hospital); Series 2010, RB | 5.38 | % | 07/01/42 | 1,000 | 1,051,340 | |||||||||||
| Geisinger Authority (Geisinger Health System); | ||||||||||||||||
Series 2005 C, VRD Health System RB(c) | 0.09 | % | 08/01/28 | 500 | 500,000 | |||||||||||
Series 2011 A-1, Health System RB | 5.13 | % | 06/01/41 | 500 | 545,350 | |||||||||||
Series 2011 C, VRD Health System RB(c) | 0.08 | % | 06/01/41 | 1,500 | 1,500,000 | |||||||||||
Greensburg Salem School District; Series 2002, Ref. Unlimited Tax GO Bonds (INS–NATL)(a) | 5.38 | % | 09/15/17 | 1,415 | 1,449,271 | |||||||||||
| Lancaster (County of) Hospital Authority (Brethren Village); Series 2008 A, RB | 6.50 | % | 07/01/40 | 750 | 773,393 | |||||||||||
| Lancaster (County of) Hospital Authority (St. Anne’s Home for the Aged, Inc.); Series 1999, Health Center RB | 6.60 | % | 04/01/24 | 1,000 | 1,000,300 | |||||||||||
| Lehigh (County of) General Purpose Authority (KidsPeace Obligated Group); Series 1998, RB | 6.00 | % | 11/01/23 | 1,760 | 844,782 | |||||||||||
Lehigh (County of) General Purpose Authority (St. Luke’s Bethlehem); Series 2003, Hospital RB(d)(e) | 5.25 | % | 08/15/13 | 980 | 1,050,815 | |||||||||||
| Lehigh (County of) Industrial Development Authority (Lifepath, Inc.); Series 1998, Health Facility RB | 6.30 | % | 06/01/28 | 1,085 | 981,600 | |||||||||||
| Lycoming (County of) Authority (Pennsylvania College of Technology); Series 2011, RB | 5.00 | % | 07/01/30 | 750 | 828,548 | |||||||||||
| Lycoming (County of) Authority (Susquehanna Health System); Series 2009 A, Heath System RB | 5.75 | % | 07/01/39 | 1,250 | 1,320,662 | |||||||||||
| Monroe (County of) Hospital Authority (Pocono Medical Center); | ||||||||||||||||
Series 2003, RB(d)(e) | 6.00 | % | 01/01/14 | 1,000 | 1,104,150 | |||||||||||
| Series 2007, RB | 5.13 | % | 01/01/37 | 1,500 | 1,528,830 | |||||||||||
| Montgomery (County of) Higher Education & Health Authority (Abington Memorial Hospital); Series 2002 A, Hospital RB | 5.13 | % | 06/01/32 | 2,100 | 2,129,253 | |||||||||||
Montgomery (County of) Industrial Development Authority (ACTS Retirement-Life Community); Series 2009 A-1, RB | 6.25 | % | 11/15/29 | 1,000 | 1,117,360 | |||||||||||
| Montgomery (County of) Industrial Development Authority (Philadelphia Presbytery Homes, Inc.); Series 2010, RB | 6.63 | % | 12/01/30 | 1,500 | 1,654,530 | |||||||||||
| Montgomery (County of) Industrial Development Authority (Whitemarsh Community); Series 2008, Mortgage RB | 7.00 | % | 02/01/36 | 500 | 500,680 | |||||||||||
| Montgomery (County of) Industrial Development Authority (Whitemarsh Continuing Care); | ||||||||||||||||
| Series 2005, Mortgage RB | 6.13 | % | 02/01/28 | 1,100 | 1,052,040 | |||||||||||
| Series 2005, Mortgage RB | 6.25 | % | 02/01/35 | 250 | 230,868 | |||||||||||
| Mt. Lebanon Hospital Authority (St. Clair Memorial Hospital); Series 2002 A, RB | 5.63 | % | 07/01/32 | 2,000 | 2,009,040 | |||||||||||
| Northampton (County of) General Purpose Authority (Lehigh University); Series 2009, Higher Education RB | 5.50 | % | 11/15/33 | 1,000 | 1,138,380 | |||||||||||
| Northampton (County of) General Purpose Authority (St. Luke’s Hospital); | ||||||||||||||||
| Series 2008 A, Hospital RB | 5.50 | % | 08/15/35 | 1,000 | 1,043,260 | |||||||||||
Series 2010 C, Hospital RB(d)(f) | 4.50 | % | 08/15/16 | 1,000 | 1,093,120 | |||||||||||
| Pennsylvania (Sate of) Economic Development Financing Agency (Forum Place); Series 2012, Governmental Lease RB | 5.00 | % | 03/01/34 | 500 | 538,970 | |||||||||||
| Pennsylvania (State of) Economic Development Financing Authority (Allegheny Energy Supply Co.); Series 2009, RB | 7.00 | % | 07/15/39 | 1,830 | 2,109,441 | |||||||||||
| Pennsylvania (State of) Economic Development Financing Authority (Philadelphia Biosolids Facility); Series 2009, Sewage Sludge Disposal RB | 6.25 | % | 01/01/32 | 1,000 | 1,101,960 | |||||||||||
Pennsylvania (State of) Economic Development Financing Authority (Waste Management, Inc.); Series 2005 A, Solid Waste Disposal RB(b) | 5.10 | % | 10/01/27 | 1,300 | 1,338,350 | |||||||||||
| Pennsylvania (State of) Higher Educational Facilities Authority (Edinboro University Foundation); Series 2010, RB | 6.00 | % | 07/01/43 | 500 | 530,215 | |||||||||||
| Pennsylvania (State of) Higher Educational Facilities Authority (St. Joseph’s University); | ||||||||||||||||
| Series 2010 A, RB | 5.00 | % | 11/01/34 | 500 | 541,455 | |||||||||||
| Series 2010 A, RB | 5.00 | % | 11/01/40 | 500 | 536,500 | |||||||||||
| Pennsylvania (State of) Higher Educational Facilities Authority (Thomas Jefferson University); | ||||||||||||||||
| Series 2002, RB | 5.38 | % | 01/01/25 | 645 | 658,081 | |||||||||||
| Series 2002, RB | 5.50 | % | 01/01/19 | 355 | 366,832 | |||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (Trustees of the University of Pennsylvania); Series 2005 C, RB(g) | 5.00 | % | 07/15/38 | 4,700 | 4,950,933 | |||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Van Kampen Pennsylvania Tax Free Income Fund
| Principal | ||||||||||||||||
| Interest | Maturity | Amount | ||||||||||||||
| Rate | Date | (000) | Value | |||||||||||||
Pennsylvania–(continued) | ||||||||||||||||
| Pennsylvania (State of) Turnpike Commission; | ||||||||||||||||
| Series 2008 B-1, Sub. RB | 5.50 | % | 06/01/33 | $ | 1,000 | $ | 1,097,010 | |||||||||
Series 2009 C, Sub. Conv. CAB RB (INS–AGM)(a)(h) | 0.00 | % | 06/01/33 | 2,000 | 1,955,920 | |||||||||||
Series 2009 E, Sub. Conv. CAB RB(h) | 0.00 | % | 12/01/38 | 1,435 | 1,270,032 | |||||||||||
| Series 2010 A 1, Motor License Fund Special RB | 5.00 | % | 12/01/38 | 500 | 544,330 | |||||||||||
Series 2010 A-2, Motor License Fund Special Conv. CAB RB(h) | 0.00 | % | 12/01/34 | 1,000 | 899,630 | |||||||||||
Series 2010 B 2, Conv. CAB RB(h) | 0.00 | % | 12/01/30 | 625 | 568,013 | |||||||||||
Series 2010 B 2, Conv. CAB RB(h) | 0.00 | % | 12/01/35 | 500 | 441,620 | |||||||||||
| Philadelphia (City of) Hospitals & Higher Education Facilities Authority (Children’s Hospital of Philadelphia); Series 2011, RB | 5.00 | % | 07/01/41 | 570 | 613,337 | |||||||||||
| Philadelphia (City of) Hospitals & Higher Education Facilities Authority (Jefferson Health System); Series 2010 B, RB | 5.00 | % | 05/15/40 | 1,500 | 1,601,310 | |||||||||||
| Philadelphia (City of) Industrial Development Authority (Independence Charter School); Series 2007 A, RB | 5.50 | % | 09/15/37 | 1,235 | 1,108,857 | |||||||||||
| Philadelphia (City of) Industrial Development Authority (MaST Charter School); Series 2010, RB | 6.00 | % | 08/01/35 | 700 | 771,099 | |||||||||||
| Philadelphia (City of) Industrial Development Authority (Please Touch Museum); Series 2006, RB | 5.25 | % | 09/01/31 | 1,250 | 1,021,325 | |||||||||||
Philadelphia (City of) Industrial Development Authority; Series 1990, Commercial Development RB(b) | 7.75 | % | 12/01/17 | 2,505 | 2,508,181 | |||||||||||
| Philadelphia (City of) Municipal Authority (Municipal Services Building Lease); | ||||||||||||||||
Series 1990, CAB RB (INS–AGM)(a)(h) | 0.00 | % | 03/15/12 | 3,775 | 3,774,245 | |||||||||||
Series 1990, CAB RB (INS–AGM)(a)(h) | 0.00 | % | 03/15/13 | 4,400 | 4,361,852 | |||||||||||
| Philadelphia (City of); | ||||||||||||||||
| Ninth Series 2010, Gas Works RB | 5.25 | % | 08/01/40 | 1,500 | 1,561,545 | |||||||||||
Series 2005 A, Airport RB (INS–NATL)(a)(b) | 5.00 | % | 06/15/25 | 1,000 | 1,035,390 | |||||||||||
Series 2009 A, Ref. Unlimited Tax GO Bonds (INS–AGC)(a) | 5.50 | % | 08/01/24 | 1,000 | 1,149,860 | |||||||||||
Series 2010 C, Water & Wastewater RB (INS–AGM)(a) | 5.00 | % | 08/01/35 | 1,250 | 1,371,850 | |||||||||||
| Series 2011, Unlimited Tax GO Bonds | 6.00 | % | 08/01/36 | 500 | 577,265 | |||||||||||
Philadelphia School District; Series 2008 E, Limited Tax GO Bonds (INS–BHAC)(a) | 5.13 | % | 09/01/23 | 1,500 | 1,709,445 | |||||||||||
| Philidelphia (City of) Industrial Development Authority (Discovery Charter School); Series 2012, RB | 6.25 | % | 04/01/42 | 1,000 | 1,014,120 | |||||||||||
Pittsburgh (City of) & Allegheny (County of) Sports & Exhibition Authority (Regional Asset District); Series 2010, Ref. Sales Tax RB (INS–AGM)(a) | 5.00 | % | 02/01/31 | 1,000 | 1,103,580 | |||||||||||
Radnor Township School District; Series 2005 B, Unlimited Tax GO Bonds (INS–AGM)(a) | 5.00 | % | 02/15/35 | 1,000 | 1,087,030 | |||||||||||
State Public School Building Authority (Harrisburg School District); Series 2009 A, RB (INS–AGC)(a) | 5.00 | % | 11/15/33 | 1,000 | 1,075,990 | |||||||||||
| Susquehanna Area Regional Airport Authority; | ||||||||||||||||
Series 2003 A, Airport System RB (INS–AMBAC)(a)(b) | 5.50 | % | 01/01/19 | 2,500 | 2,514,250 | |||||||||||
| Series 2003 D, Sub. Airport System RB | 5.38 | % | 01/01/18 | 2,340 | 2,276,609 | |||||||||||
| Union (County of) Hospital Authority (Evangelical Community Hospital); Series 2011, Ref. & Improvement RB | 7.00 | % | 08/01/41 | 1,000 | 1,129,110 | |||||||||||
Upper St. Clair Township School District; Series 2002, Unlimited Tax GO Bonds(d)(e) | 5.38 | % | 07/15/12 | 1,200 | 1,223,772 | |||||||||||
| Washington (County of) Industrial Development Authority (Washington Jefferson College); Series 2010, College RB | 5.25 | % | 11/01/30 | 500 | 550,310 | |||||||||||
Washington (County of) Redevelopment Authority (Victory Centre Tanger Outlet Development); Series 2006 A, Tax Allocation RB(f) | 5.45 | % | 07/01/35 | 1,460 | 1,468,614 | |||||||||||
| Washington (County of); | ||||||||||||||||
Series 2002 A, Unlimited Tax GO Bonds(d)(e) | 5.13 | % | 09/01/12 | 350 | 358,817 | |||||||||||
Series 2002 A, Unlimited Tax GO Bonds (INS–AMBAC)(a) | 5.13 | % | 09/01/27 | 650 | 655,935 | |||||||||||
| Westmoreland (County of) Industrial Development Authority (Redstone Presbyterian Senior Care Obligated Group); | ||||||||||||||||
| Series 2005 A, Retirement Community RB | 5.75 | % | 01/01/26 | 2,500 | 2,447,300 | |||||||||||
| Series 2005 A, Retirement Community RB | 5.88 | % | 01/01/32 | 900 | 855,468 | |||||||||||
| Wilkes-Barre (City of) Finance Authority (University of Scranton); Series 2010, RB | 5.00 | % | 11/01/40 | 850 | 917,218 | |||||||||||
| 132,532,119 | ||||||||||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Van Kampen Pennsylvania Tax Free Income Fund
| Principal | ||||||||||||||||
| Interest | Maturity | Amount | ||||||||||||||
| Rate | Date | (000) | Value | |||||||||||||
| Puerto Rico–7.41% | ||||||||||||||||
| Puerto Rico (Commonwealth of) Aqueduct & Sewer Authority; Series 2008 A, Sr. Lien RB | 6.00 | % | 07/01/38 | $ | 1,000 | $ | 1,078,710 | |||||||||
| Puerto Rico (Commonwealth of) Electric Power Authority; | ||||||||||||||||
| Series 2008 WW, RB | 5.25 | % | 07/01/33 | 1,500 | 1,588,050 | |||||||||||
| Series 2008 WW, RB | 5.50 | % | 07/01/21 | 1,000 | 1,131,580 | |||||||||||
| Series 2010 XX, RB | 5.75 | % | 07/01/36 | 1,000 | 1,097,340 | |||||||||||
Puerto Rico (Commonwealth of) Infrastructure Financing Authority; Series 2005 C, Ref. Special Tax RB (INS–AMBAC)(a) | 5.50 | % | 07/01/27 | 600 | 678,048 | |||||||||||
| Puerto Rico Sales Tax Financing Corp.; | ||||||||||||||||
First Subseries 2010, Conv. CAB RB(h) | 0.00 | % | 08/01/33 | 1,065 | 841,669 | |||||||||||
First Subseries 2010 A, CAB RB(h) | 0.00 | % | 08/01/34 | 3,500 | 1,053,745 | |||||||||||
First Subseries 2010 A, CAB RB(h) | 0.00 | % | 08/01/35 | 5,000 | 1,401,400 | |||||||||||
| First Subseries 2010 A, RB | 5.38 | % | 08/01/39 | 470 | 508,686 | |||||||||||
| Series 2011 C, RB | 5.00 | % | 08/01/40 | 1,500 | 1,627,170 | |||||||||||
| 11,006,398 | ||||||||||||||||
| Guam–2.43% | ||||||||||||||||
| Guam (Territory of) (Section 30); Series 2009 A, Limited Obligation RB | 5.75 | % | 12/01/34 | 1,250 | 1,331,450 | |||||||||||
| Guam (Territory of) Power Authority; Series 2010 A, RB | 5.50 | % | 10/01/40 | 410 | 416,142 | |||||||||||
| Guam (Territory of) Waterworks Authority; Series 2010, Water & Wastewater System RB | 5.63 | % | 07/01/40 | 1,000 | 1,004,211 | |||||||||||
| Guam (Territory of); Series 2011 A, Business Privilege Tax RB | 5.13 | % | 01/01/42 | 785 | 852,549 | |||||||||||
| 3,604,352 | ||||||||||||||||
| Virgin Islands–1.86% | ||||||||||||||||
| Virgin Islands (Government of) Public Finance Authority (Matching Fund Loan Note–Diageo); Series 2009 A, Sub. RB | 6.63 | % | 10/01/29 | 750 | 858,720 | |||||||||||
| Virgin Islands (Government of) Public Finance Authority (Matching Fund Loan Note); Series 2010 A, Sr. Lien RB | 5.00 | % | 10/01/29 | 500 | 527,285 | |||||||||||
| Virgin Islands (Government of) Water & Power Authority; Series 2007 A, Electric System RB | 5.00 | % | 07/01/25 | 1,335 | 1,375,223 | |||||||||||
| 2,761,228 | ||||||||||||||||
TOTAL INVESTMENTS(i)–100.96% (Cost $142,200,459) | 149,904,097 | |||||||||||||||
| FLOATING RATE NOTE OBLIGATIONS–(2.11%) | ||||||||||||||||
Note with an interest rate of 0.16% at 02/29/12 and contractual maturity of collateral of 07/15/38 (See Note 1L)(j) | (3,135,000 | ) | ||||||||||||||
| OTHER ASSETS LESS LIABILITIES–1.15% | 1,716,065 | |||||||||||||||
| NET ASSETS–100.00% | $ | 148,485,162 | ||||||||||||||
Investment Abbreviations:
| AGC | – Assured Guaranty Corp. | |
| AGM | – Assured Guaranty Municipal Corp. | |
| AMBAC | – American Municipal Bond Assurance Corp. | |
| BHAC | – Berkshire Hathaway Assurance Corp. | |
| CAB | – Capital Appreciation Bonds | |
| CEP | – Credit Enhancement Provider | |
| Conv. | – Convertible | |
| GNMA | – Government National Mortgage Association | |
| GO | – General Obligation | |
| INS | – Insurer | |
| NATL | – National Public Finance Guarantee Corp. | |
| Radian | – Radian Asset Assurance, Inc. | |
| RB | – Revenue Bonds | |
| Ref. | – Refunding | |
| Sr. | – Senior | |
| Sub. | – Subordinated | |
| VRD | – Variable Rate Demand |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Van Kampen Pennsylvania Tax Free Income Fund
Notes to Schedule of Investments:
| (a) | Principal and/or interest payments are secured by the bond insurance company listed. | |
| (b) | Security subject to the alternative minimum tax. | |
| (c) | Demand security payable upon demand by the Fund at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically. Rate shown is the rate in effect on February 29, 2012. | |
| (d) | Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put. | |
| (e) | Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral. | |
| (f) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 29, 2012. | |
| (g) | Underlying security related to Dealer Trusts entered into by the Trust. See Note 1L. | |
| (h) | Zero coupon bond issued at a discount. | |
| (i) | This table provides a listing of those entities that have either issued, guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the issuer’s obligations but may be called upon to satisfy the issuer’s obligation. |
| Entities | Percentage | |||
| Assurance Guaranty Municipal Corp. | 10.9 | % | ||
| American Municipal Bond Assurance Corp. | 5.6 | |||
| (j) | Floating rate note obligations related to security held. The interest rate shown reflects the rate in effect at February 29, 2012. At February 29, 2012, the Fund’s investment with a value of $4,950,933 are held by Dealer Trusts and serve as collateral for the $3,135,000 in the floating rate note obligations outstanding at that date. |
| Philadelphia (City of) Municipal Authority (Municipal Services Building Lease) | 5.5 | % | ||
| Pennsylvania (State of) Turnpike Commission | 4.6 | |||
| Philadelphia (City of) | 3.8 | |||
| Puerto Rico Sales Tax Financing Corp. | 3.7 | |||
| Delaware Valley Regional Financial Authority | 3.6 | |||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Van Kampen Pennsylvania Tax Free Income Fund
Statement of Assets and Liabilities
February 29, 2012
(Unaudited)
| Assets: | ||||
| Investments, at value (Cost $142,200,459) | $ | 149,904,097 | ||
| Cash | 1,358,419 | |||
| Receivable for: | ||||
| Fund shares sold | 190,313 | |||
| Interest | 1,633,727 | |||
| Investment for trustee deferred compensation and retirement plans | 7,138 | |||
| Other assets | 280 | |||
| Total assets | 153,093,974 | |||
| Liabilities: | ||||
| Floating rate note obligations | 3,135,000 | |||
| Payable for: | ||||
| Investments purchased | 980,020 | |||
| Fund shares reacquired | 193,432 | |||
| Dividends | 190,573 | |||
| Accrued fees to affiliates | 45,496 | |||
| Accrued other operating expenses | 52,579 | |||
| Trustee deferred compensation and retirement plans | 11,712 | |||
| Total liabilities | 4,608,812 | |||
| Net assets applicable to shares outstanding | $ | 148,485,162 | ||
| Net assets consist of: | ||||
| Shares of beneficial interest | $ | 147,916,412 | ||
| Undistributed net investment income | 392,834 | |||
| Undistributed net realized gain (loss) | (7,527,722 | ) | ||
| Unrealized appreciation | 7,703,638 | |||
| $ | 148,485,162 | |||
| Net Assets: | ||||
| Class A | $ | 135,108,080 | ||
| Class B | $ | 2,689,545 | ||
| Class C | $ | 10,498,140 | ||
| Class Y | $ | 189,397 | ||
| Shares outstanding, $0.01 par value per share, with an unlimited number of shares authorized: | ||||
| Class A | 8,122,029 | |||
| Class B | 161,338 | |||
| Class C | 630,135 | |||
| Class Y | 11,382 | |||
| Class A: | ||||
| Net asset value per share | $ | 16.63 | ||
| Maximum offering price per share | ||||
| (Net asset value of $16.63 divided by 95.25%) | $ | 17.46 | ||
| Class B: | ||||
| Net asset value and offering price per share | $ | 16.67 | ||
| Class C: | ||||
| Net asset value and offering price per share | $ | 16.66 | ||
| Class Y: | ||||
| Net asset value and offering price per share | $ | 16.64 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Van Kampen Pennsylvania Tax Free Income Fund
Statement of Operations
For the six months ended February 29, 2012
(Unaudited)
| Investment income: | ||||
| Interest | $ | 3,839,544 | ||
| Expenses: | ||||
| Advisory fees | 432,253 | |||
| Administrative services fees | 24,864 | |||
| Custodian fees | 2,726 | |||
| Distribution fees: | ||||
| Class A | 163,486 | |||
| Class C | 50,021 | |||
| Interest, facilities and maintenance fees | 10,964 | |||
| Transfer agent fees | 37,548 | |||
| Trustees’ and officers’ fees and benefits | 13,327 | |||
| Other | 37,964 | |||
| Total expenses | 773,153 | |||
| Net investment income | 3,066,391 | |||
| Realized and unrealized gain (loss) from: | ||||
| Net realized gain (loss) from investment securities | (246,877 | ) | ||
| Change in net unrealized appreciation of investment securities | 7,176,767 | |||
| Net realized and unrealized gain | 6,929,890 | |||
| Net increase in net assets resulting from operations | $ | 9,996,281 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Van Kampen Pennsylvania Tax Free Income Fund
Statement of Changes in Net Assets
For the six months ended February 29, 2012 and the year ended August 31, 2011
(Unaudited)
| February 29, | August 31, | |||||||
| 2012 | 2011 | |||||||
| Operations: | ||||||||
| Net investment income | $ | 3,066,391 | $ | 6,469,917 | ||||
| Net realized gain (loss) | (246,877 | ) | (204,374 | ) | ||||
| Change in net unrealized appreciation (depreciation) | 7,176,767 | (4,601,295 | ) | |||||
| Net increase in net assets resulting from operations | 9,996,281 | 1,664,248 | ||||||
| Distributions to shareholders from net investment income: | ||||||||
| Class A | (2,742,470 | ) | (5,718,833 | ) | ||||
| Class B | (60,751 | ) | (145,393 | ) | ||||
| Class C | (171,777 | ) | �� | (361,071 | ) | |||
| Class Y | (4,046 | ) | (7,449 | ) | ||||
| Total distributions from net investment income | (2,979,044 | ) | (6,232,746 | ) | ||||
| Share transactions–net: | ||||||||
| Class A | (1,611,261 | ) | (6,996,668 | ) | ||||
| Class B | (514,177 | ) | (1,483,029 | ) | ||||
| Class C | 337,360 | (1,051,715 | ) | |||||
| Class Y | 1,175 | 16,165 | ||||||
| Net increase (decrease) in net assets resulting from share transactions | (1,786,903 | ) | (9,515,247 | ) | ||||
| Net increase (decrease) in net assets | 5,230,334 | (14,083,745 | ) | |||||
| Net assets: | ||||||||
| Beginning of period | 143,254,828 | 157,338,573 | ||||||
| End of period (includes undistributed net investment income of $392,834 and $305,487, respectively) | $ | 148,485,162 | $ | 143,254,828 | ||||
Notes to Financial Statements
February 29, 2012
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco Van Kampen Pennsylvania Tax Free Income Fund (the “Fund”), is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (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 twelve 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 to provide only Pennsylvania investors with a high level of current income which is exempt from federal and Pennsylvania state income taxes and, where possible under local law, local income and personal property taxes, through investment primarily in a varied portfolio of medium- and lower-grade municipal securities.
The Fund currently consists of four different classes of shares: Class A, Class B, Class C and Class Y. 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 Y 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. 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. 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 conversion date will be subject to a CDSC.
12 Invesco Van Kampen Pennsylvania Tax Free Income Fund
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. | |
| Securities are fair valued using an evaluated quote provided by an independent pricing service approved by the Board of Trustees. 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, yield, quality, coupon rate, maturity, type of issue, individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and principal payments. | ||
| Securities for which market quotations either are not readily available or are 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. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances. | ||
| 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. | ||
| B. | 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 is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes. | |
| 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 Statement of Changes in Net Assets, or the net investment income per share and 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 realized and unrealized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class. | ||
| C. | 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 income are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. | |
| E. | Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable and tax-exempt 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. | |
| In addition, the Fund intends to invest in such municipal securities to allow it to qualify to pay shareholders “exempt-interest dividends”, as defined in the Internal Revenue Code. | ||
| 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. | ||
| F. | Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets. | |
| G. | Interest, Facilities and Maintenance Fees — Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees and other expenses associated with lines of credit and interest and administrative expenses related to establishing and maintaining floating rate note obligations, if any. | |
| H. | 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. |
13 Invesco Van Kampen Pennsylvania Tax Free Income Fund
| I. | 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 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. | |
| J. | Other Risks — The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located. | |
| Since many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and a Fund’s investments in municipal securities. | ||
| There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service. | ||
| K. | Securities Purchased on a When-Issued and Delayed Delivery Basis — The Fund may purchase and sell interests in portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date. | |
| L. | Floating Rate Note Obligations — The Fund invests in inverse floating rate securities, such as Residual Interest Bonds (“RIBs”) or Tender Option Bonds (“TOBs”) for investment purposes and to enhance the yield of the Fund. Inverse floating rate investments tend to underperform the market for fixed rate bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Such transactions may be purchased in the secondary market without first owning the underlying bond or by the sale of fixed rate bonds by the Fund to special purpose trusts established by a broker dealer (“Dealer Trusts”) in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The Dealer Trusts finance the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Fund to retain residual interest in the bonds. The floating rate notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. The residual interests held by the Fund (inverse floating rate investments) include the right of the Fund (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Fund, thereby collapsing the Dealer Trusts. | |
| TOBs are presently classified as private placement securities. Private placement securities are subject to restrictions on resale because they have not been registered under the Securities Act of 1933, as amended or are otherwise not readily marketable. As a result of the absence of a public trading market for these securities, they may be less liquid than publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices realized from these sales could be less than those originally paid by the Fund or less than what may be considered the fair value of such securities. | ||
| The Fund accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Fund’s investment assets, and the related floating rate notes reflected as Fund liabilities under the caption Floating rate note obligations on the Statement of Assets and Liabilities. The Fund records the interest income from the fixed rate bonds under the caption Interest and records the expenses related to floating rate obligations and any administrative expenses of the Dealer Trusts as a component of Interest, facilities and maintenance fees on the Statement of Operations. | ||
| The Fund generally invests in inverse floating rate securities that include embedded leverage, thus exposing the Fund to greater risks and increased costs. The primary risks associated with inverse floating rate securities are varying degrees of liquidity and the changes in the value of such securities in response to changes in market rates of interest to a greater extent than the value of an equal principal amount of a fixed rate security having similar credit quality, redemption provisions and maturity which may cause the Fund’s net asset value to be more volatile than if it had not invested in inverse floating rate securities. In certain instances, the short-term floating rate interests created by the special purpose trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such interests for repayment of principal, may not be able to be remarketed to third parties. In such cases, the special purpose trust holding the long-term fixed rate bonds may be collapsed. In the case of RIBs or TOBs created by the contribution of long-term fixed income bonds by the Fund, the Fund will then be required to repay the principal amount of the tendered securities. During times of market volatility, illiquidity or uncertainty, the Fund could be required to sell other portfolio holdings at a disadvantageous time to raise cash to meet that obligation. |
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 pays 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 $500 million | 0 | .60% | ||
| Over $500 million | 0 | .50% | ||
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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management,
14 Invesco Van Kampen Pennsylvania Tax Free Income Fund
Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).
The Adviser has contractually agreed, through June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class B, Class C and Class Y shares to 1.13%, 1.88%, 1.88% and 0.88% of average daily net assets, respectively. 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 net annual operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (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 the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Adviser did not waive fees and/or reimburse expenses during the period under this limitation.
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 six months ended February 29, 2012, 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 are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 29, 2012, the expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.
Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A shares, Class B shares and Class C shares to compensate IDI for the sale, distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will incur annual fees of up to 0.25% of Class A average daily net assets and up to 1.00% each of Class B and Class C average daily net assets.
With respect to Class B and Class C shares, the Fund is authorized to reimburse in future years any distribution related expenses that exceed the maximum annual reimbursement rate for such class, so long as such reimbursement does not cause the Fund to exceed the Class B and Class C maximum annual reimbursement rate, respectively. With respect to Class A shares, distribution related expenses that exceed the maximum annual reimbursement rate for such class are not carried forward to future years and the Fund will not reimburse IDI for any such expenses.
For the six months ended February 29, 2012, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees. Class B distribution fees were reduced by $3,616 during the period.
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 six months ended February 29, 2012, IDI advised the Fund that IDI retained $5,991 in front-end sales commissions from the sale of Class A shares and $3, $1,866 and $20 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.
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 February 29, 2012. 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.
During the six months ended February 29, 2012, there were no significant transfers between investment levels.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Equity Securities | $ | — | $ | 149,904,097 | $ | — | $ | 149,904,097 | ||||||||
15 Invesco Van Kampen Pennsylvania Tax Free Income Fund
NOTE 4—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 are eligible to participate in a retirement plan that provides 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.
During the six months ended February 29, 2012, the Fund paid legal fees of $0 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.
NOTE 5—Cash Balances and Borrowings
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company (“SSB”), 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.
Inverse floating rate obligations resulting from the transfer of bonds to Dealer Trusts are accounted for as secured borrowings. The average floating rate notes outstanding and average annual interest and fees related to inverse floating rate note obligations during the six months ended February 29, 2012 were $3,135,000 and 0.70%, respectively.
NOTE 6—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
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. The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, 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. Additionally, post-enactment capital loss carryovers 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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2011, which expires as follows:
| Capital Loss Carryforward* | ||||||||||||
| Expiration | Short-Term | Long-Term | Total | |||||||||
| August 31, 2016 | $ | 7,726 | $ | — | $ | 7,726 | ||||||
| August 31, 2017 | 5,935,990 | — | 5,935,990 | |||||||||
| August 31, 2018 | 1,085,533 | — | 1,085,533 | |||||||||
| $ | 7,029,249 | $ | — | $ | 7,029,249 | |||||||
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. |
NOTE 7—Investment Securities
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 six months ended February 29, 2012 was $4,974,289 and $9,118,784, respectively. Cost of investments 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 Investment Securities on a Tax Basis | ||||
| Aggregate unrealized appreciation of investment securities | $ | 9,968,387 | ||
| Aggregate unrealized (depreciation) of investment securities | (2,139,333 | ) | ||
| Net unrealized appreciation of investment securities | $ | 7,829,054 | ||
| Cost of investments for tax purposes is $142,075,043. | ||||
16 Invesco Van Kampen Pennsylvania Tax Free Income Fund
NOTE 8—Share Information
| Summary of Share Activity | ||||||||||||||||
| Six months ended | Year ended | |||||||||||||||
| February 29, 2012(a) | August 31, 2011 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Sold: | ||||||||||||||||
| Class A | 141,125 | $ | 2,294,212 | 328,452 | $ | 5,195,467 | ||||||||||
| Class B | 3,645 | 58,894 | 7,253 | 112,271 | ||||||||||||
| Class C | 28,705 | 463,777 | 85,450 | 1,346,149 | ||||||||||||
| Class Y | — | — | 3,213 | 49,072 | ||||||||||||
| Issued as reinvestment of dividends: | ||||||||||||||||
| Class A | 102,459 | 1,667,780 | 226,447 | 3,533,901 | ||||||||||||
| Class B | 1,992 | 32,499 | 5,309 | 82,803 | ||||||||||||
| Class C | 6,777 | 110,435 | 15,348 | 240,054 | ||||||||||||
| Class Y | 72 | 1,175 | 106 | 1,660 | ||||||||||||
| Automatic conversion of Class B shares to Class A shares: | ||||||||||||||||
| Class A | 13,868 | 222,705 | 61,948 | 965,762 | ||||||||||||
| Class B | (14,839 | ) | (222,705 | ) | (62,106 | ) | (965,762 | ) | ||||||||
| Reacquired: | ||||||||||||||||
| Class A | (357,892 | ) | (5,795,958 | ) | (1,074,556 | ) | (16,691,798 | ) | ||||||||
| Class B | (22,512 | ) | (382,865 | ) | (45,831 | ) | (712,341 | ) | ||||||||
| Class C | (14,425 | ) | (236,852 | ) | (171,056 | ) | (2,637,918 | ) | ||||||||
| Class Y | — | — | (2,268 | ) | (34,567 | ) | ||||||||||
| Net increase (decrease) in share activity | (111,025 | ) | $ | (1,786,903 | ) | (622,291 | ) | $ | (9,515,247 | ) | ||||||
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 35% 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. |
17 Invesco Van Kampen Pennsylvania Tax Free Income Fund
NOTE 9—Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ratio of | expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net gains | expenses | to average net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (losses) on | to average | assets excluding | Ratio of net | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net asset | securities | Dividends | Distributions | net assets | interest, | investment | ||||||||||||||||||||||||||||||||||||||||||||||||||
| value, | Net | (both | Total from | from net | from net | Net asset | Net assets, | with fee waivers | facilities and | income | ||||||||||||||||||||||||||||||||||||||||||||||
| beginning | investment | realized and | investment | investment | realized | Total | value, end | Total | end of period | and/or expenses | maintenance | to average | Portfolio | |||||||||||||||||||||||||||||||||||||||||||
| of period | income(a) | unrealized) | operations | income | gains | distributions | of period | return | (000s omitted) | absorbed | fees(b) | net assets | turnover(c) | |||||||||||||||||||||||||||||||||||||||||||
| Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | $ | 15.85 | $ | 0.35 | $ | 0.77 | $ | 1.12 | $ | (0.34 | ) | $ | — | $ | (0.34 | ) | $ | 16.63 | 7.12 | %(d) | $ | 135,108 | 1.03 | %(e) | 1.01 | %(e) | 4.30 | %(e) | 3 | % | ||||||||||||||||||||||||||
| Year ended 08/31/11 | 16.29 | 0.70 | (0.47 | ) | 0.23 | (0.67 | ) | — | (0.67 | ) | 15.85 | 1.58 | (d) | 130,344 | 1.02 | 1.00 | 4.47 | 13 | ||||||||||||||||||||||||||||||||||||||
| Period ended 08/31/10 | 15.93 | 0.66 | 0.38 | 1.04 | (0.68 | ) | — | (0.68 | ) | 16.29 | 6.74 | (d) | 141,406 | 1.14 | (f) | 1.10 | (f) | 4.54 | (f) | 15 | ||||||||||||||||||||||||||||||||||||
| Year ended 09/30/09 | 14.76 | 0.73 | 1.18 | 1.91 | (0.74 | ) | — | (0.74 | ) | 15.93 | 13.60 | (g) | 141,191 | 1.21 | 1.13 | 5.05 | 17 | |||||||||||||||||||||||||||||||||||||||
| Year ended 09/30/08 | 16.84 | 0.72 | (2.03 | ) | (1.31 | ) | (0.73 | ) | (0.04 | ) | (0.77 | ) | 14.76 | (8.02 | )(g) | 137,435 | 1.32 | 1.06 | 4.43 | 25 | ||||||||||||||||||||||||||||||||||||
| Year ended 09/30/07 | 17.43 | 0.70 | (0.53 | ) | 0.17 | (0.68 | ) | (0.08 | ) | (0.76 | ) | 16.84 | 0.95 | (g) | 160,539 | 1.44 | 1.08 | 4.08 | 25 | |||||||||||||||||||||||||||||||||||||
| Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 15.86 | 0.37 | 0.78 | 1.15 | (0.34 | ) | — | (0.34 | ) | 16.67 | 7.30 | (d)(h) | 2,690 | 0.70 | (e) | 0.68 | (e) | 4.63 | (e) | 3 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 16.23 | 0.70 | (0.45 | ) | 0.25 | (0.62 | ) | — | (0.62 | ) | 15.86 | 1.68 | (d)(h) | 3,062 | 1.02 | (h) | 1.00 | (h) | 4.47 | (h) | 13 | |||||||||||||||||||||||||||||||||||
| Period ended 08/31/10 | 15.89 | 0.59 | 0.38 | 0.97 | (0.63 | ) | — | (0.63 | ) | 16.23 | 6.27 | (d)(h) | 4,682 | 1.64 | (f)(h) | 1.60 | (f)(h) | 4.05 | (f)(h) | 15 | ||||||||||||||||||||||||||||||||||||
| Year ended 09/30/09 | 14.72 | 0.68 | 1.18 | 1.86 | (0.69 | ) | — | (0.69 | ) | 15.89 | 13.21 | (i)(j) | 5,364 | 1.57 | (j) | 1.49 | (j) | 4.70 | (j) | 17 | ||||||||||||||||||||||||||||||||||||
| Year ended 09/30/08 | 16.78 | 0.63 | (2.01 | ) | (1.38 | ) | (0.64 | ) | (0.04 | ) | (0.68 | ) | 14.72 | (8.46 | )(i)(j) | 6,161 | 1.81 | (j) | 1.55 | (j) | 3.94 | (j) | 25 | |||||||||||||||||||||||||||||||||
| Year ended 09/30/07 | 17.38 | 0.57 | (0.54 | ) | 0.03 | (0.55 | ) | (0.08 | ) | (0.63 | ) | 16.78 | 0.20 | (i) | 8,919 | 2.19 | 1.83 | 3.32 | 25 | |||||||||||||||||||||||||||||||||||||
| Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 15.88 | 0.29 | 0.77 | 1.06 | (0.28 | ) | — | (0.28 | ) | 16.66 | 6.71 | (d) | 10,498 | 1.78 | (e) | 1.76 | (e) | 3.55 | (e) | 3 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 16.31 | 0.58 | (0.45 | ) | 0.13 | (0.56 | ) | — | (0.56 | ) | 15.88 | 0.89 | (d) | 9,670 | 1.77 | 1.75 | 3.72 | 13 | ||||||||||||||||||||||||||||||||||||||
| Period ended 08/31/10 | 15.95 | 0.55 | 0.38 | 0.93 | (0.57 | ) | — | (0.57 | ) | 16.31 | 6.01 | (d) | 11,083 | 1.89 | (f) | 1.85 | (f) | 3.79 | (f) | 15 | ||||||||||||||||||||||||||||||||||||
| Year ended 09/30/09 | 14.78 | 0.62 | 1.18 | 1.80 | (0.63 | ) | — | (0.63 | ) | 15.95 | 12.74 | (k) | 6,776 | 1.96 | 1.89 | 4.28 | 17 | |||||||||||||||||||||||||||||||||||||||
| Year ended 09/30/08 | 16.86 | 0.59 | (2.02 | ) | (1.43 | ) | (0.61 | ) | (0.04 | ) | (0.65 | ) | 14.78 | (8.71 | )(k) | 4,546 | 2.07 | 1.81 | 3.68 | 25 | ||||||||||||||||||||||||||||||||||||
| Year ended 09/30/07 | 17.45 | 0.58 | (0.54 | ) | 0.04 | (0.55 | ) | (0.08 | ) | (0.63 | ) | 16.86 | 0.19 | (k) | 4,793 | 2.19 | 1.83 | 3.33 | 25 | |||||||||||||||||||||||||||||||||||||
| Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 15.86 | 0.37 | 0.77 | 1.14 | (0.36 | ) | — | (0.36 | ) | 16.64 | 7.24 | (d) | 189 | 0.78 | (e) | 0.76 | (e) | 4.55 | (e) | 3 | ||||||||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 16.30 | 0.74 | (0.47 | ) | 0.27 | (0.71 | ) | — | (0.71 | ) | 15.86 | 1.84 | (d) | 179 | 0.77 | 0.75 | 4.72 | 13 | ||||||||||||||||||||||||||||||||||||||
| Period ended 08/31/10(l) | 15.94 | 0.19 | 0.36 | 0.55 | (0.19 | ) | — | (0.19 | ) | 16.30 | 3.49 | (d) | 167 | 0.85 | (f) | 0.81 | (f) | 4.75 | (f) | 15 | ||||||||||||||||||||||||||||||||||||
| (a) | Calculated using average shares outstanding. | |
| (b) | For the years ended September 30, 2009 and prior, ratio does not exclude facilities and maintenance fees. | |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. | |
| (d) | 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. | |
| (e) | Ratios are annualized and based on average daily net assets (000’s omitted) of $131,718, $2,915, $10,059 and $183 for Class A, Class B, Class C and Class Y shares, respectively. | |
| (f) | Annualized. | |
| (g) | Assumes reinvestment of all distributions for the period and does not include payment of the maximum sales charge of 4.75% or contingent deferred sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be imposed on certain redemptions made within eighteen months of purchase. If the sales charges were included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 0.25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
| (h) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.25% and 0.74% for the year ended August 31, 2011 and the period ended August 31, 2010, respectively. | |
| (i) | Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 5%, charged on certain redemptions made within one year of purchase and declining to 0% after the fifth year. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
| (j) | The Total return, Ratio of expenses to average net assets and Ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of less than 1%. | |
| (k) | Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 1%, charged on certain redemptions made within one year of purchase. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
| (l) | Commencement date of June 1, 2010. |
18 Invesco Van Kampen Pennsylvania Tax Free Income 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, and redemption fees, 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 September 1, 2011 through February 29, 2012.
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, contingent deferred sales charges on redemptions, and redemption fees, 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.
| HYPOTHETICAL | ||||||||||||||||||||||||||||||
| ACTUAL | (5% annual return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Ending | Expenses | Annualized | |||||||||||||||||||||||||
| Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||||||||||||||||||||
| Class | (09/01/11) | (02/29/12)1 | Period2,3 | (02/29/12) | Period2,3 | Ratio3 | ||||||||||||||||||||||||
| A | $ | 1,000.00 | $ | 1,071.20 | $ | 5.30 | $ | 1,019.74 | $ | 5.17 | 1.03 | % | ||||||||||||||||||
| B | 1,000.00 | 1,073.00 | 5.31 | 1,019,74 | 5.17 | 1.03 | ||||||||||||||||||||||||
| C | 1,000.00 | 1,067.10 | 9.15 | 1,016.01 | 8.92 | 1.78 | ||||||||||||||||||||||||
| Y | 1,000.00 | 1,072.40 | 4.02 | 1,020.98 | 3.92 | 0.78 | ||||||||||||||||||||||||
| 1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2011 through February 29, 2012, 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 182/366 to reflect the most recent fiscal half year. |
| 3 | The annualized expense ratio for Class B shares has been restated to reflect estimated 12b-1 on-going expenses for the current fiscal year. The annualized expense ratio, the actual expenses paid during the period and the hypothetical expenses paid during the period prior to restatement were 0.70%, $3.61 and $3.52, respectively. |
19 Invesco Van Kampen Pennsylvania Tax Free Income Fund
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Invesco privacy policy
You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.
Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.
Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.
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 811-09913 and 333-36074.
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 12 months ended June 30, 2011, 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 U.S. 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.
| VK-PTFI-SAR-1 | Invesco Distributors, Inc. |
Invesco Van Kampen Small Cap Growth Fund
Semiannual Report to Shareholders § February 29, 2012
Nasdaq:
A: VASCX § B: VBSCX § C: VCSCX § Y: VISCX
| 2 | Fund Performance | |
| 3 | Letters to Shareholders | |
| 4 | Schedule of Investments | |
| 8 | Financial Statements | |
| 10 | Notes to Financial Statements | |
| 16 | Financial Highlights | |
| 17 | Fund Expenses | |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
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 | ||
Fund Performance
Performance summary
Fund vs. Indexes
Cumulative total returns, 8/31/11 to 2/29/12, 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 | 13.90 | % | ||
| Class B Shares | 13.94 | |||
| Class C Shares | 13.55 | |||
| Class Y Shares | 13.98 | |||
S&P 500 Index▼ (Broad Market Index) | 13.30 | |||
Russell 2000 Growth Index▼ (Style-Specific Index) | 12.99 | |||
Lipper Small-Cap Growth Funds Index▼(Peer Group Index) | 12.97 | |||
| Source(s): ▼Lipper Inc. | ||
The S&P 500® Index is an unmanaged index considered representative of the US stock market.
The Russell 2000® Growth Index is an unmanaged index considered representative of small-cap growth stocks. The Russell 2000 Growth Index is a trademark/ service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.
The Lipper Small-Cap Growth Funds Index is an unmanaged index considered representative of small-cap growth funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
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.
Average Annual Total Returns
As of 2/29/12, including maximum applicable
sales charges
sales charges
| Class A Shares | ||||||||
| Inception (11/27/00) | 1.69 | % | ||||||
| 10 Years | 7.30 | |||||||
| 5 Years | 2.84 | |||||||
| 1 Year | -5.14 | |||||||
| Class B Shares | ||||||||
| Inception (11/27/00) | 1.68 | % | ||||||
| 10 Years | 7.36 | |||||||
| 5 Years | 3.33 | |||||||
| 1 Year | -4.04 | |||||||
| Class C Shares | ||||||||
| Inception (11/27/00) | 1.46 | % | ||||||
| 10 Years | 7.13 | |||||||
| 5 Years | 3.24 | |||||||
| 1 Year | -1.10 | |||||||
| Class Y Shares | ||||||||
| Inception (2/2/06) | 4.39 | % | ||||||
| 5 Years | 4.27 | |||||||
| 1 Year | 0.65 | |||||||
Average Annual Total Returns
As of 12/31/11, the most recent calendar quarter-end, including maximum applicable sales charges
| Class A Shares | ||||||||
| Inception (11/27/00) | 0.66 | % | ||||||
| 10 Years | 5.03 | |||||||
| 5 Years | 0.71 | |||||||
| 1 Year | -8.73 | |||||||
| Class B Shares | ||||||||
| Inception (11/27/00) | 0.65 | % | ||||||
| 10 Years | 5.07 | |||||||
| 5 Years | 1.16 | |||||||
| 1 Year | -7.53 | |||||||
| Class C Shares | ||||||||
| Inception (11/27/00) | 0.44 | % | ||||||
| 10 Years | 4.86 | |||||||
| 5 Years | 1.11 | |||||||
| 1 Year | -4.80 | |||||||
| Class Y Shares | ||||||||
| Inception (2/2/06) | 2.49 | % | ||||||
| 5 Years | 2.12 | |||||||
| 1 Year | -3.15 | |||||||
Effective June 1, 2010, Class A, Class B, Class C and Class I shares of the predecessor fund, Van Kampen Small Cap Growth Fund, advised by Van Kampen Asset Management were
reorganized into Class A, Class B, Class C and Class Y shares, respectively, of Invesco Van Kampen Small Cap Growth Fund. Returns shown above for Class A, Class B, Class C
and Class Y shares are blended returns of the predecessor fund and Invesco Van Kampen Small Cap Growth Fund. Share class returns will differ from the predecessor fund because of different expenses.
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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. 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 and Class Y shares was 1.42%, 1.44%, 2.10% and 1.17%, 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. For shares purchased prior to June 1, 2010, the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the sixth year. For shares purchased on or after June 1, 2010, the CDSC on Class B shares declines from 5% 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 Y 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.
2 Invesco Van Kampen Small Cap Growth Fund
Letters to Shareholders
Bruce Crockett
Dear Fellow Shareholders:
Throughout 2011, we experienced volatile, challenging markets that presented both opportunities and risks for investors. Based on everything I’ve read, this year could potentially be just as interesting, with continued economic uncertainty and market volatility.
With this in mind, you’ll want to stay informed regarding the markets and keep up to date with news that affects your investment portfolio. Invesco’s website, invesco.com/us, provides a wealth of information about your investments and news regarding global markets.
Regardless of economic conditions and market trends, the Invesco Funds Board of Trustees remains committed to putting your interests first. Throughout 2011, we worked to manage costs, and this remains a continuing focus of your Board. We will continue to oversee the funds with the strong sense of responsibility for your money and your continued trust that we’ve always maintained.
I would like to close by thanking Bob Baker for his distinguished 30-year service with the Invesco Funds Board and his unflagging commitment to our funds’ shareholders. As always, I encourage you to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving you in 2012.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Independent Chair
Invesco Funds Board of Trustees
Philip Taylor
Dear Shareholders:
This report provides important information about your Fund, including its short- and long-term performance. Also, this report includes a listing of investments held by your Fund at the close of the reporting period.
Investors are likely to confront both opportunities and challenges in 2012. As we saw in 2011, market sentiment can change suddenly and dramatically — and certainly without advance notice — depending on economic developments and world events. Similarly, your own situation, needs and goals can change, requiring adjustments in your financial strategy.
In addition to meeting with your financial adviser regularly to discuss your individual situation, you also may find it helpful to stay abreast of market trends and developments. Doing so may provide reassurance in times of economic uncertainty and market volatility such as we saw last year and may see again this year.
Invesco can help you stay informed about your investments and market trends. On our website, invesco.com/us, we provide timely market updates and commentary from many of our portfolio managers and other investment professionals. Also on our website, you can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer at invesco.com/us.
If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.
All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.
Sincerely,
Philip Taylor
Senior Managing Director, Invesco Ltd.
Senior Managing Director, Invesco Ltd.
3 Invesco Van Kampen Small Cap Growth Fund
Schedule of Investments(a)
February 29, 2012
(Unaudited)
| Shares | Value | |||||||
| Common Stocks & Other Equity Interests–96.16% | ||||||||
| Aerospace & Defense–0.92% | ||||||||
Esterline Technologies Corp.(b) | 160,727 | $ | 10,439,219 | |||||
| Air Freight & Logistics–0.75% | ||||||||
| UTI Worldwide, Inc. | 527,630 | 8,515,948 | ||||||
| Airlines–0.80% | ||||||||
Spirit Airlines Inc.(b) | 467,806 | 9,136,251 | ||||||
| Alternative Carriers–0.86% | ||||||||
AboveNet, Inc.(b) | 140,545 | 9,776,310 | ||||||
| Apparel Retail–2.52% | ||||||||
| DSW Inc.–Class A | 203,497 | 11,477,231 | ||||||
Express, Inc.(b) | 461,407 | 10,981,487 | ||||||
Genesco Inc.(b) | 92,697 | 6,316,373 | ||||||
| 28,775,091 | ||||||||
| Apparel, Accessories & Luxury Goods–1.46% | ||||||||
Hanesbrands, Inc.(b) | 346,859 | 9,965,259 | ||||||
Under Armour, Inc.–Class A(b)(c) | 75,156 | 6,706,922 | ||||||
| 16,672,181 | ||||||||
| Application Software–7.40% | ||||||||
Aspen Technology, Inc.(b) | 544,784 | 11,200,759 | ||||||
Bottomline Technologies, Inc.(b) | 268,606 | 7,547,829 | ||||||
BroadSoft Inc.(b)(c) | 212,759 | 7,738,045 | ||||||
Cadence Design Systems, Inc.(b) | 624,325 | 7,348,305 | ||||||
Compuware Corp.(b) | 1,124,999 | 10,136,241 | ||||||
Guidewire Software Inc.(b)(c) | 108,304 | 2,449,836 | ||||||
Informatica Corp.(b) | 167,282 | 8,223,583 | ||||||
Parametric Technology Corp.(b) | 446,445 | 11,920,082 | ||||||
Solarwinds, Inc.(b)(c) | 231,669 | 8,631,987 | ||||||
Taleo Corp.–Class A(b) | 201,628 | 9,238,595 | ||||||
| 84,435,262 | ||||||||
| Asset Management & Custody Banks–0.85% | ||||||||
Affiliated Managers Group, Inc.(b) | 90,793 | 9,659,467 | ||||||
| Auto Parts & Equipment–1.42% | ||||||||
Modine Manufacturing Co.(b) | 649,255 | 5,895,235 | ||||||
TRW Automotive Holdings Corp.(b) | 226,504 | 10,360,293 | ||||||
| 16,255,528 | ||||||||
| Automotive Retail–0.79% | ||||||||
Asbury Automotive Group Inc.(b)(c) | 347,366 | 9,007,200 | ||||||
| Biotechnology–3.81% | ||||||||
Amarin Corp. PLC–ADR (United Kingdom)(b)(c) | 463,235 | 3,590,071 | ||||||
BioMarin Pharmaceutical Inc.(b)(c) | 303,403 | 10,846,657 | ||||||
Cubist Pharmaceuticals, Inc.(b)(c) | 245,889 | 10,538,803 | ||||||
Incyte Corp.(b)(c) | 398,910 | 6,765,514 | ||||||
Onyx Pharmaceuticals, Inc.(b) | 143,505 | 5,499,112 | ||||||
United Therapeutics Corp.(b) | 131,199 | 6,262,128 | ||||||
| 43,502,285 | ||||||||
| Building Products–0.75% | ||||||||
Owens Corning Inc.(b) | 269,550 | 8,531,257 | ||||||
| Commodity Chemicals–0.23% | ||||||||
| Koppers Holdings, Inc. | 69,190 | 2,603,620 | ||||||
| Communications Equipment–1.09% | ||||||||
Aruba Networks Inc.(b)(c) | 125,021 | 2,699,203 | ||||||
NETGEAR, Inc.(b) | 230,292 | 8,652,071 | ||||||
Ubiquiti Networks Inc.(b)(c) | 40,465 | 1,063,420 | ||||||
| 12,414,694 | ||||||||
| Construction & Engineering–0.70% | ||||||||
MasTec Inc.(b)(c) | 453,895 | 7,984,013 | ||||||
| Construction & Farm Machinery & Heavy Trucks–1.43% | ||||||||
AGCO Corp.(b) | 175,986 | 9,086,157 | ||||||
WABCO Holdings Inc.(b) | 121,938 | 7,254,092 | ||||||
| 16,340,249 | ||||||||
| Construction Materials–0.85% | ||||||||
| Eagle Materials Inc. | 309,659 | 9,717,099 | ||||||
| Data Processing & Outsourced Services–2.42% | ||||||||
Cardtronics, Inc.(b) | 376,926 | 10,022,462 | ||||||
VeriFone Systems, Inc.(b)(c) | 238,878 | 11,439,868 | ||||||
Wright Express Corp.(b) | 99,342 | 6,147,283 | ||||||
| 27,609,613 | ||||||||
| Diversified Chemicals–1.08% | ||||||||
| Solutia Inc. | 439,243 | 12,347,121 | ||||||
| Electric Utilities–0.51% | ||||||||
| ITC Holdings Corp. | 77,669 | 5,862,456 | ||||||
| Electrical Components & Equipment–1.48% | ||||||||
| Belden Inc. | 142,580 | 5,627,633 | ||||||
Regal-Beloit Corp.(c) | 167,369 | 11,297,407 | ||||||
| 16,925,040 | ||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 Invesco Van Kampen Small Cap Growth Fund
| Shares | Value | |||||||
| Electronic Equipment & Instruments–0.66% | ||||||||
| Cognex Corp. | 175,455 | $ | 7,481,401 | |||||
| Environmental & Facilities Services–1.36% | ||||||||
Progressive Waste Solutions Ltd. (Canada)(c) | 265,616 | 5,439,816 | ||||||
| Waste Connections Inc. | 308,187 | 10,022,241 | ||||||
| 15,462,057 | ||||||||
| Fertilizers & Agricultural Chemicals–0.67% | ||||||||
Intrepid Potash, Inc.(b)(c) | 303,556 | 7,676,931 | ||||||
| Footwear–1.24% | ||||||||
Crocs, Inc.(b) | 223,423 | 4,390,262 | ||||||
Steven Madden, Ltd.(b) | 227,286 | 9,814,209 | ||||||
| 14,204,471 | ||||||||
| Health Care Distributors–0.64% | ||||||||
PSS World Medical, Inc.(b)(c) | 301,315 | 7,300,862 | ||||||
| Health Care Equipment–5.16% | ||||||||
Arthrocare Corp.(b) | 170,937 | 4,461,456 | ||||||
DexCom Inc.(b)(c) | 257,878 | 2,782,504 | ||||||
HeartWare International Inc.(b)(c) | 83,245 | 6,098,529 | ||||||
| Hill-Rom Holdings, Inc. | 224,778 | 7,635,709 | ||||||
Insulet Corp.(b)(c) | 389,285 | 7,676,700 | ||||||
Masimo Corp.(b) | 270,388 | 5,894,458 | ||||||
Sirona Dental Systems, Inc.(b) | 164,645 | 8,215,785 | ||||||
Thoratec Corp.(b) | 188,039 | 6,487,345 | ||||||
Volcano Corp.(b)(c) | 346,259 | 9,705,640 | ||||||
| 58,958,126 | ||||||||
| Health Care Facilities–0.73% | ||||||||
Health Management Associates Inc.–Class A(b) | 1,135,233 | 8,378,020 | ||||||
| Health Care Services–3.42% | ||||||||
Catalyst Health Solutions, Inc.(b) | 174,144 | 10,800,411 | ||||||
HMS Holdings Corp.(b)(c) | 299,520 | 9,650,535 | ||||||
Mednax, Inc.(b)(c) | 133,565 | 9,935,900 | ||||||
Team Health Holdings, Inc.(b)(c) | 400,906 | 8,695,651 | ||||||
| 39,082,497 | ||||||||
| Health Care Supplies–0.83% | ||||||||
Align Technology, Inc.(b) | 148,950 | 3,814,610 | ||||||
Meridian Bioscience, Inc.(c) | 315,816 | 5,691,004 | ||||||
| 9,505,614 | ||||||||
| Health Care Technology–0.85% | ||||||||
Allscripts Healthcare Solutions, Inc.(b) | 502,056 | 9,699,722 | ||||||
| Homebuilding–0.86% | ||||||||
PulteGroup Inc.(b)(c) | 1,111,814 | 9,806,199 | ||||||
| Housewares & Specialties–1.11% | ||||||||
Jarden Corp.(c) | 360,286 | 12,707,287 | ||||||
| Industrial Machinery–1.60% | ||||||||
| Actuant Corp.–Class A | 438,148 | 12,342,629 | ||||||
| IDEX Corp. | 141,943 | 5,933,218 | ||||||
| 18,275,847 | ||||||||
| Internet Software & Services–2.90% | ||||||||
comScore Inc.(b)(c) | 247,322 | 5,438,611 | ||||||
j2 Global, Inc.(c) | 199,610 | 5,902,468 | ||||||
LogMeIn, Inc.(b) | 152,992 | 5,639,285 | ||||||
| NIC Inc. | 467,348 | 5,650,237 | ||||||
ValueClick, Inc.(b)(c) | 503,774 | 10,478,499 | ||||||
| 33,109,100 | ||||||||
| Investment Banking & Brokerage–0.84% | ||||||||
Stifel Financial Corp.(b)(c) | 254,977 | 9,569,287 | ||||||
| Investment Companies–Exchange Traded Funds–4.09% | ||||||||
| iShares Russell 2000 Growth Index Fund | 374,600 | 35,066,306 | ||||||
iShares Russell 2000 Index Fund(c) | 143,000 | 11,581,570 | ||||||
| 46,647,876 | ||||||||
| IT Consulting & Other Services–0.47% | ||||||||
| MAXIMUS, Inc. | 129,035 | 5,382,050 | ||||||
| Leisure Products–0.72% | ||||||||
Polaris Industries Inc.(c) | 124,669 | 8,235,634 | ||||||
| Managed Health Care–0.64% | ||||||||
Health Net Inc.(b) | 192,916 | 7,280,650 | ||||||
| Metal & Glass Containers–0.70% | ||||||||
| Greif Inc.–Class A | 155,270 | 7,951,377 | ||||||
| Movies & Entertainment–0.90% | ||||||||
| Cinemark Holdings, Inc. | 492,639 | 10,306,008 | ||||||
| Office Services & Supplies–1.22% | ||||||||
| Interface, Inc.–Class A | 463,372 | 5,676,307 | ||||||
| Steelcase Inc.–Class A | 944,375 | 8,291,612 | ||||||
| 13,967,919 | ||||||||
| Oil & Gas Drilling–0.89% | ||||||||
Atwood Oceanics, Inc.(b)(c) | 213,135 | 10,136,701 | ||||||
| Oil & Gas Equipment & Services–2.44% | ||||||||
Key Energy Services, Inc.(b) | 526,868 | 8,988,368 | ||||||
Oil States International, Inc.(b) | 123,186 | 10,005,167 | ||||||
Superior Energy Services, Inc.(b)(c) | 301,247 | 8,838,587 | ||||||
| 27,832,122 | ||||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 Invesco Van Kampen Small Cap Growth Fund
| Shares | Value | |||||||
| Oil & Gas Exploration & Production–3.42% | ||||||||
| Berry Petroleum Co.–Class A | 110,720 | $ | 5,974,451 | |||||
Gulfport Energy Corp.(b) | 261,798 | 8,801,649 | ||||||
Oasis Petroleum Inc.(b)(c) | 238,365 | 7,644,365 | ||||||
Rosetta Resources, Inc.(b) | 185,067 | 9,445,820 | ||||||
Swift Energy Co.(b)(c) | 238,435 | 7,160,203 | ||||||
| 39,026,488 | ||||||||
| Packaged Foods & Meats–0.80% | ||||||||
| B&G Foods Inc. | 394,236 | 9,177,814 | ||||||
| Paper Packaging–0.66% | ||||||||
| Packaging Corp. of America | 255,518 | 7,573,554 | ||||||
| Personal Products–0.65% | ||||||||
Elizabeth Arden, Inc.(b) | 198,376 | 7,369,668 | ||||||
| Pharmaceuticals–1.34% | ||||||||
| Medicis Pharmaceutical Corp.–Class A | 285,618 | 9,979,493 | ||||||
Salix Pharmaceuticals, Ltd.(b) | 107,835 | 5,318,422 | ||||||
| 15,297,915 | ||||||||
| Property & Casualty Insurance–0.90% | ||||||||
| ProAssurance Corp. | 117,336 | 10,297,407 | ||||||
| Regional Banks–2.03% | ||||||||
BBCN Bancorp, Inc.(b) | 556,216 | 5,701,214 | ||||||
Signature Bank(b) | 128,260 | 7,613,514 | ||||||
SVB Financial Group(b)(c) | 166,476 | 9,868,697 | ||||||
| 23,183,425 | ||||||||
| Research & Consulting Services–0.61% | ||||||||
Acacia Research(b) | 176,021 | 6,952,830 | ||||||
| Restaurants–1.20% | ||||||||
BJ’s Restaurants Inc.(b) | 120,543 | 5,984,960 | ||||||
Bravo Brio Restaurant Group Inc.(b)(c) | 399,992 | 7,711,846 | ||||||
| 13,696,806 | ||||||||
| Semiconductor Equipment–1.89% | ||||||||
Cymer, Inc.(b)(c) | 117,177 | 5,387,798 | ||||||
Nanometrics Inc.(b)(c) | 119,458 | 2,096,488 | ||||||
Teradyne, Inc.(b) | 854,469 | 14,030,381 | ||||||
| 21,514,667 | ||||||||
| Semiconductors–4.01% | ||||||||
Cypress Semiconductor Corp.(b) | 384,725 | 6,636,506 | ||||||
Lattice Semiconductor Corp.(b) | 1,464,005 | 9,647,793 | ||||||
Microsemi Corp.(b)(c) | 485,649 | 10,159,777 | ||||||
Semtech Corp.(b)(c) | 370,686 | 10,642,395 | ||||||
Volterra Semiconductor Corp.(b) | 284,058 | 8,729,103 | ||||||
| 45,815,574 | ||||||||
| Specialty Chemicals–1.74% | ||||||||
| Cytec Industries Inc. | 185,595 | 11,035,479 | ||||||
Rockwood Holdings Inc.(b) | 166,093 | 8,844,452 | ||||||
| 19,879,931 | ||||||||
| Specialty Stores–1.84% | ||||||||
| Signet Jewelers Ltd. (Bermuda) | 114,313 | 5,361,280 | ||||||
| Tractor Supply Co. | 117,903 | 10,077,169 | ||||||
Vitamin Shoppe, Inc.(b)(c) | 132,148 | 5,607,040 | ||||||
| 21,045,489 | ||||||||
| Systems Software–3.82% | ||||||||
Ariba Inc.(b) | 266,526 | 8,387,573 | ||||||
CommVault Systems, Inc.(b) | 177,865 | 9,172,498 | ||||||
Fortinet Inc.(b) | 231,780 | 6,269,649 | ||||||
Imperva Inc.(b) | 62,765 | 2,325,443 | ||||||
MICROS Systems, Inc.(b) | 184,737 | 9,593,393 | ||||||
Rovi Corp.(b) | 222,709 | 7,901,715 | ||||||
| 43,650,271 | ||||||||
| Tires & Rubber–0.71% | ||||||||
| Cooper Tire & Rubber Co. | 491,060 | 8,151,596 | ||||||
| Trading Companies & Distributors–1.91% | ||||||||
United Rentals, Inc.(b)(c) | 211,204 | 8,802,983 | ||||||
WESCO International, Inc.(b) | 207,487 | 13,048,857 | ||||||
| 21,851,840 | ||||||||
| Trucking–1.57% | ||||||||
| Landstar System, Inc. | 174,329 | 9,424,226 | ||||||
| Werner Enterprises, Inc. | 351,349 | 8,509,673 | ||||||
| 17,933,899 | ||||||||
| Total Common Stocks & Other Equity Interests (Cost $887,701,923) | 1,097,886,836 | |||||||
| Money Market Funds–5.13% | ||||||||
Liquid Assets Portfolio–Institutional Class(d) | 29,268,240 | 29,268,240 | ||||||
Premier Portfolio–Institutional Class(d) | 29,268,241 | 29,268,241 | ||||||
| Total Money Market Funds (Cost $58,536,481) | 58,536,481 | |||||||
| TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–101.29% (Cost $946,238,404) | 1,156,423,317 | |||||||
| Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
| Money Market Funds–20.78% | ||||||||
Liquid Assets Portfolio–Institutional Class (Cost $237,201,352)(d)(e) | 237,201,352 | 237,201,352 | ||||||
| TOTAL INVESTMENTS–122.07% (Cost $1,183,439,756) | 1,393,624,669 | |||||||
| OTHER ASSETS LESS LIABILITIES–(22.07)% | (251,949,093 | ) | ||||||
| NET ASSETS–100.00% | $ | 1,141,675,576 | ||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Van Kampen Small Cap Growth Fund
Investment Abbreviations:
| ADR | – American Depositary Receipt |
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 February 29, 2012. | |
| (d) | The money market fund and the Fund are affiliated by having the same investment adviser. | |
| (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 1J. |
By sector, based on Net Assets
as of February 29, 2012
| Information Technology | 23.8 | % | ||
| Health Care | 17.4 | |||
| Consumer Discretionary | 15.4 | |||
| Industrials | 14.5 | |||
| Financials | 9.6 | |||
| Energy | 6.7 | |||
| Materials | 5.9 | |||
| Consumer Staples | 1.5 | |||
| Telecommunication Services | 0.9 | |||
| Utilities | 0.5 | |||
| Money Market Funds Plus Other Assets Less Liabilities | 3.8 | |||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Van Kampen Small Cap Growth Fund
Statement of Assets and Liabilities
February 29, 2012
(Unaudited)
| Assets: | ||||
| Investments, at value (Cost $887,701,923) | $ | 1,097,886,836 | ||
| Investments in affiliated money market funds, at value and cost | 295,737,833 | |||
| Total investments, at value (Cost $1,183,439,756) | 1,393,624,669 | |||
| Receivable for: | ||||
| Investments sold | 8,162,605 | |||
| Fund shares sold | 4,676,846 | |||
| Dividends | 320,767 | |||
| Fund expenses absorbed | 218,953 | |||
| Investment for trustee deferred compensation and retirement plans | 12,135 | |||
| Other assets | 38,427 | |||
| Total assets | 1,407,054,402 | |||
| Liabilities: | ||||
| Payable for: | ||||
| Investments purchased | 22,447,460 | |||
| Fund shares reacquired | 4,131,804 | |||
| Collateral upon return of securities loaned | 237,201,352 | |||
| Accrued fees to affiliates | 1,313,195 | |||
| Accrued other operating expenses | 235,994 | |||
| Trustee deferred compensation and retirement plans | 49,021 | |||
| Total liabilities | 265,378,826 | |||
| Net assets applicable to shares outstanding | $ | 1,141,675,576 | ||
| Net assets consist of: | ||||
| Shares of beneficial interest | $ | 935,953,873 | ||
| Undistributed net investment income (loss) | (3,917,963 | ) | ||
| Undistributed net realized gain (loss) | (545,247 | ) | ||
| Unrealized appreciation | 210,184,913 | |||
| $ | 1,141,675,576 | |||
| Net Assets: | ||||
| Class A | $ | 850,757,819 | ||
| Class B | $ | 16,182,965 | ||
| Class C | $ | 51,837,005 | ||
| Class Y | $ | 222,897,787 | ||
| Shares outstanding, $0.01 par value per share, with an unlimited number of shares authorized: | ||||
| Class A | 78,717,746 | |||
| Class B | 1,610,744 | |||
| Class C | 5,279,734 | |||
| Class Y | 20,256,652 | |||
| Class A: | ||||
| Net asset value per share | $ | 10.81 | ||
| Maximum offering price per share | ||||
| (Net asset value of $10.81 divided by 94.50%) | $ | 11.44 | ||
| Class B: | ||||
| Net asset value and offering price per share | $ | 10.05 | ||
| Class C: | ||||
| Net asset value and offering price per share | $ | 9.82 | ||
| Class Y: | ||||
| Net asset value and offering price per share | $ | 11.00 | ||
| * | At February 29, 2012, securities with an aggregate value of $203,642,071 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Van Kampen Small Cap Growth Fund
Statement of Operations
For the six months ended February 29, 2012
(Unaudited)
| Investment income: | ||||
| Dividends (net of foreign withholding taxes of $12,610) | $ | 2,970,114 | ||
| Dividends from affiliated money market funds (includes securities lending income of $400,000) | 451,265 | |||
| Total investment income | 3,421,379 | |||
| Expenses: | ||||
| Advisory fees | 4,171,490 | |||
| Administrative services fees | 139,727 | |||
| Custodian fees | 16,122 | |||
| Distribution fees: | ||||
| Class A | 1,003,455 | |||
| Class B | 19,394 | |||
| Class C | 244,247 | |||
| Transfer agent fees | 1,919,779 | |||
| Trustees’ and officers’ fees and benefits | 43,323 | |||
| Other | 274,857 | |||
| Total expenses | 7,832,394 | |||
| Less: Fees waived and expense offset arrangement(s) | (509,555 | ) | ||
| Net expenses | 7,322,839 | |||
| Net investment income (loss) | (3,901,460 | ) | ||
| Realized and unrealized gain from: | ||||
| Net realized gain from investment securities (includes net gains from securities sold to affiliates of $147,089) | 4,060,247 | |||
| Change in net unrealized appreciation of investment securities | 143,718,937 | |||
| Net realized and unrealized gain | 147,779,184 | |||
| Net increase in net assets resulting from operations | $ | 143,877,724 | ||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Van Kampen Small Cap Growth Fund
Statement of Changes in Net Assets
For the six months ended February 29, 2012 and the year ended August 31, 2011.
(Unaudited)
| Six months | ||||||||
| ended | Year ended | |||||||
| February 29, | August 31, | |||||||
| 2012 | 2011 | |||||||
| Operations: | ||||||||
| Net investment income (loss) | $ | (3,901,460 | ) | $ | (12,418,666 | ) | ||
| Net realized gain | 4,060,247 | 156,490,689 | ||||||
| Change in net unrealized appreciation | 143,718,937 | 61,326,821 | ||||||
| Net increase in net assets resulting from operations | 143,877,724 | 205,398,844 | ||||||
| Distributions to shareholders from net realized gains: | ||||||||
| Class A | (81,968,048 | ) | — | |||||
| Class B | (1,718,916 | ) | — | |||||
| Class C | (5,413,962 | ) | — | |||||
| Class Y | (21,572,101 | ) | — | |||||
| Total distributions from net realized gains | (110,673,027 | ) | — | |||||
| Share transactions–net: | ||||||||
| Class A | 4,455,266 | (15,344,006 | ) | |||||
| Class B | (1,049,033 | ) | (6,818,997 | ) | ||||
| Class C | (169,717 | ) | (13,825,956 | ) | ||||
| Class Y | (17,342,722 | ) | (10,814,267 | ) | ||||
| Net increase (decrease) in net assets resulting from share transactions | (14,106,206 | ) | (46,803,226 | ) | ||||
| Net increase in net assets | 19,098,491 | 158,595,618 | ||||||
| Net assets: | ||||||||
| Beginning of period | 1,122,577,085 | 963,981,467 | ||||||
| End of period (includes undistributed net investment income (loss) of $(3,917,963) and $(16,503), respectively) | $ | 1,141,675,576 | $ | 1,122,577,085 | ||||
Notes to Financial Statements
February 29, 2012
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco Van Kampen Small Cap Growth Fund (the “Fund”), is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (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 twelve 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 to seek capital appreciation.
The Fund currently consists of four different classes of shares: Class A, Class B, Class C and Class Y. 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 Y 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. 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. 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 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. | |
| A security listed or traded on an exchange (except convertible bonds) 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 |
10 Invesco Van Kampen Small Cap Growth Fund
| 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 ask 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 ask prices. For purposes of determining net asset value 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 bonds) 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, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments. | ||
| Foreign securities (including foreign exchange contracts) 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 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 trade is not the current value as of the close of the NYSE. Foreign securities 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 are 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/ask 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. | ||
| 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. | ||
| B. | 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 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 Statement of Changes in Net Assets, or the net investment income per share and 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. | ||
| C. | 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 income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
11 Invesco Van Kampen Small Cap Growth Fund
| E. | Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of 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 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. | ||
| F. | Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets. Prior to the Reorganization, incremental transfer agency fees which are unique to each class of shares of the Acquired Fund were charged to the operations of such class. | |
| G. | 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. | |
| H. | 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 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. | |
| I. | Redemption Fees — The Fund has a 2% redemption fee that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee is recorded as an increase in shareholder capital and is allocated among the share classes based on the relative net assets of each class. Effective January 1, 2012, the Fund will eliminate the 2% redemption fee, if applicable, assessed on shares of the Fund redeemed or exchanged within 31 days of purchase. | |
| J. | 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. 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. 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 fails to return the securities. 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. 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, is included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any. |
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 pays 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 $500 million | 0 | .80% | ||
| Next $500 million | 0 | .75% | ||
| Over $1.0 billion | 0 | .70% | ||
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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2012, 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 and Class Y shares to 1.38%, 2.13%, 2.13% and 1.13%, respectively, of average daily net assets. 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 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 the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.
12 Invesco Van Kampen Small Cap Growth Fund
Further, the Adviser has contractually agreed, through at least June 30, 2012, 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 (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the six months ended February 29, 2012, the Adviser waived advisory fees of $508,859.
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 six months ended February 29, 2012, 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 are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 29, 2012, the expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.
Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A shares, Class B shares and Class C shares to compensate IDI for the sale, distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will incur annual fees of up to 0.25% of Class A average daily net assets and up to 1.00% each of Class B and Class C average daily net assets.
With respect to Class B and Class C shares, the Fund is authorized to reimburse in future years any distribution related expenses that exceed the maximum annual reimbursement rate for such class, so long as such reimbursement does not cause the Fund to exceed the Class B and Class C maximum annual reimbursement rate, respectively. With respect to Class A shares, distribution related expenses that exceed the maximum annual reimbursement rate for such class are not carried forward to future years and the Fund will not reimburse IDI for any such expenses.
For the six months ended February 29, 2012, expenses incurred under these agreements 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 six months ended February 29, 2012, IDI advised the Fund that IDI retained $16,404 in front-end sales commissions from the sale of Class A shares and $193, $8,027 and $1,009 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.
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 February 29, 2012. 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.
During the six months ended February 29, 2012, there were no significant transfers between investment levels.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Equity Securities | $ | 1,393,624,669 | $ | — | $ | — | $ | 1,393,624,669 | ||||||||
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 six months ended February 29, 2012, the Fund engaged in securities sales of $1,522,332, which resulted in net realized gains of $147,089.
13 Invesco Van Kampen Small Cap Growth Fund
NOTE 5—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended February 29, 2012, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $696.
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 are eligible to participate in a retirement plan that provides 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.
During the six months ended February 29, 2012, the Fund did not pay any legal fees for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.
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—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
The Fund did not have a capital loss carryforward as of August 31, 2011.
NOTE 9—Investment Securities
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 six months ended February 29, 2012 was $384,942,358 and $475,041,727, respectively. Cost of investments 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 Investment Securities on a Tax Basis | ||||
| Aggregate unrealized appreciation of investment securities | $ | 227,615,053 | ||
| Aggregate unrealized (depreciation) of investment securities | (21,995,272 | ) | ||
| Net unrealized appreciation of investment securities | $ | 205,619,781 | ||
| Cost of investments for tax purposes is $1,188,004,888. | ||||
14 Invesco Van Kampen Small Cap Growth Fund
NOTE 10—Share Information
| Summary of Share Activity | ||||||||||||||||
| Six months ended | Year ended | |||||||||||||||
| February 29, 2012(a) | August 31, 2011 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Sold: | ||||||||||||||||
| Class A | 9,105,804 | $ | 93,504,332 | 27,335,662 | $ | 305,615,460 | ||||||||||
| Class B | 25,126 | 241,555 | 121,453 | 1,227,517 | ||||||||||||
| Class C | 208,684 | 1,984,838 | 732,345 | 7,621,915 | ||||||||||||
| Class Y | 2,513,247 | 26,380,303 | 9,655,115 | 109,865,214 | ||||||||||||
| Issued as reinvestment of dividends: | ||||||||||||||||
| Class A | 8,188,780 | 79,758,715 | — | — | ||||||||||||
| Class B | 175,506 | 1,588,334 | — | — | ||||||||||||
| Class C | 584,164 | 5,175,695 | — | — | ||||||||||||
| Class Y | 2,008,021 | 19,899,485 | — | — | ||||||||||||
| Automatic conversion of Class B shares to Class A shares: | ||||||||||||||||
| Class A | 136,537 | 1,418,025 | 280,405 | 3,196,083 | ||||||||||||
| Class B | (142,456 | ) | (1,418,025 | ) | (299,369 | ) | (3,196,083 | ) | ||||||||
Reacquired:(b) | ||||||||||||||||
| Class A | (16,462,572 | ) | (170,225,806 | ) | (29,021,472 | ) | (324,155,549 | ) | ||||||||
| Class B | (156,927 | ) | (1,460,897 | ) | (464,581 | ) | (4,850,431 | ) | ||||||||
| Class C | (779,030 | ) | (7,330,250 | ) | (2,092,933 | ) | (21,447,871 | ) | ||||||||
| Class Y | (6,046,433 | ) | (63,622,510 | ) | (10,441,601 | ) | (120,679,481 | ) | ||||||||
| Net increase (decrease) in share activity | (641,549 | ) | $ | (14,106,206 | ) | (4,194,976 | ) | $ | (46,803,226 | ) | ||||||
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 39% 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 Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. | |
| (b) | Net of redemption fees of $12,221 and $34,933 allocated among the classes based on relative net assets of each class for the six months ended February 29, 2012 and the year ended August 31, 2011, respectively. |
15 Invesco Van Kampen Small Cap Growth Fund
NOTE 11—Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Ratio of | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||
| Net gains | expenses | expenses | ||||||||||||||||||||||||||||||||||||||||||||||
| (losses) on | to average | to average net | Ratio of net | |||||||||||||||||||||||||||||||||||||||||||||
| Net asset | Net | securities | Distributions | net assets | assets without | investment | ||||||||||||||||||||||||||||||||||||||||||
| value, | investment | (both | Total from | from net | Net asset | Net assets, | with fee waivers | fee waivers | income (loss) | |||||||||||||||||||||||||||||||||||||||
| beginning | income | realized and | investment | realized | value, end | Total | end of period | and/or expenses | and/or expenses | to average | Portfolio | |||||||||||||||||||||||||||||||||||||
| of period | (loss)(a) | unrealized) | operations | gains | of period(b) | return | (000s omitted) | absorbed | absorbed | net assets | turnover(c) | |||||||||||||||||||||||||||||||||||||
| Class A | ||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | $ | 10.56 | $ | (0.04 | ) | $ | 1.39 | $ | 1.35 | $ | (1.10 | ) | $ | 10.81 | 13.90 | %(d) | $ | 850,758 | 1.37 | %(e) | 1.46 | %(e) | (0.74 | )%(e) | 38 | % | ||||||||||||||||||||||
| Year ended 08/31/11 | 8.74 | (0.11 | ) | 1.93 | 1.82 | — | 10.56 | 20.82 | (d) | 820,988 | 1.38 | 1.42 | (1.01 | ) | 114 | |||||||||||||||||||||||||||||||||
| Five months ended 08/31/10 | 9.62 | (0.04 | ) | (0.84 | ) | (0.88 | ) | — | 8.74 | (9.15 | )(d) | 691,456 | 1.34 | (f) | 1.34 | (f) | (1.04 | )(f) | 63 | |||||||||||||||||||||||||||||
| Year ended 03/31/10 | 6.93 | (0.09 | ) | 2.78 | 2.69 | — | 9.62 | 38.82 | (g) | 748,998 | 1.39 | 1.39 | (1.04 | ) | 234 | |||||||||||||||||||||||||||||||||
| Year ended 03/31/09 | 10.15 | (0.09 | ) | (3.13 | ) | (3.22 | ) | — | 6.93 | (31.72 | )(g) | 402,611 | 1.40 | 1.40 | (1.00 | ) | 219 | |||||||||||||||||||||||||||||||
| Year ended 03/31/08 | 10.70 | (0.10 | ) | 0.29 | 0.19 | (0.74 | ) | 10.15 | 0.79 | (g) | 317,560 | 1.38 | 1.38 | (0.92 | ) | 194 | ||||||||||||||||||||||||||||||||
| Year ended 03/31/07 | 10.80 | (0.09 | ) | (0.01 | ) | (0.10 | ) | — | 10.70 | (0.83 | )(g) | 226,581 | 1.47 | 1.47 | (0.92 | ) | 321 | |||||||||||||||||||||||||||||||
| Class B | ||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 9.89 | (0.03 | ) | 1.29 | 1.26 | (1.10 | ) | 10.05 | 13.94 | (d)(h) | 16,183 | 1.36 | (e)(h) | 1.45 | (e)(h) | (0.73 | )(e)(h) | 38 | ||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 8.18 | (0.11 | ) | 1.82 | 1.71 | — | 9.89 | 20.90 | (d)(h) | 16,910 | 1.40 | (h) | 1.44 | (h) | (1.03 | )(h) | 114 | |||||||||||||||||||||||||||||||
| Five months ended 08/31/10 | 9.03 | (0.05 | ) | (0.80 | ) | (0.85 | ) | — | 8.18 | (9.41 | )(d)(h) | 19,249 | 1.63 | (f)(h) | 1.63 | (f)(h) | (1.33 | )(f)(h) | 63 | |||||||||||||||||||||||||||||
| Year ended 03/31/10 | 6.51 | (0.09 | ) | 2.61 | 2.52 | — | 9.03 | 38.71 | (i)(j) | 23,169 | 1.53 | (j) | 1.53 | (j) | (1.19 | )(j) | 234 | |||||||||||||||||||||||||||||||
| Year ended 03/31/09 | 9.59 | (0.14 | ) | (2.94 | ) | (3.08 | ) | — | 6.51 | (32.12 | )(i)(j) | 22,044 | 2.04 | (j) | 2.04 | (j) | (1.65 | )(j) | 219 | |||||||||||||||||||||||||||||
| Year ended 03/31/08 | 10.22 | (0.18 | ) | 0.29 | 0.11 | (0.74 | ) | 9.59 | 0.03 | (i) | 42,722 | 2.14 | 2.14 | (1.68 | ) | 194 | ||||||||||||||||||||||||||||||||
| Year ended 03/31/07 | 10.39 | (0.16 | ) | (0.01 | ) | (0.17 | ) | — | 10.22 | (1.64 | )(i) | 50,593 | 2.22 | 2.22 | (1.68 | ) | 321 | |||||||||||||||||||||||||||||||
| Class C | ||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 9.73 | (0.07 | ) | 1.26 | 1.19 | (1.10 | ) | 9.82 | 13.43 | (d) | 51,837 | 2.12 | (e) | 2.21 | (e) | (1.49 | )(e) | 38 | ||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 8.10 | (0.17 | ) | 1.80 | 1.63 | — | 9.73 | 20.12 | (d)(k) | 51,212 | 2.06 | (k) | 2.10 | (k) | (1.69 | )(k) | 114 | |||||||||||||||||||||||||||||||
| Five months ended 08/31/10 | 8.95 | (0.07 | ) | (0.78 | ) | (0.85 | ) | — | 8.10 | (9.50 | )(d) | 53,673 | 2.09 | (f) | 2.09 | (f) | (1.79 | )(f) | 63 | |||||||||||||||||||||||||||||
| Year ended 03/31/10 | 6.50 | (0.14 | ) | 2.59 | 2.45 | — | 8.95 | 37.69 | (l) | 62,523 | 2.14 | 2.14 | (1.79 | ) | 234 | |||||||||||||||||||||||||||||||||
| Year ended 03/31/09 | 9.58 | (0.14 | ) | (2.94 | ) | (3.08 | ) | — | 6.50 | (32.15 | )(l) | 39,064 | 2.14 | 2.14 | (1.75 | ) | 219 | |||||||||||||||||||||||||||||||
| Year ended 03/31/08 | 10.21 | (0.18 | ) | 0.29 | 0.11 | (0.74 | ) | 9.58 | 0.03 | (l) | 42,395 | 2.14 | 2.14 | (1.67 | ) | 194 | ||||||||||||||||||||||||||||||||
| Year ended 03/31/07 | 10.38 | (0.16 | ) | (0.01 | ) | (0.17 | ) | — | 10.21 | (1.64 | )(l) | 31,672 | 2.22 | 2.22 | (1.68 | ) | 321 | |||||||||||||||||||||||||||||||
| Class Y(m) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 02/29/12 | 10.72 | (0.03 | ) | 1.41 | 1.38 | (1.10 | ) | 11.00 | 13.98 | (d) | 222,898 | 1.12 | (e) | 1.21 | (e) | (0.49 | )(e) | 38 | ||||||||||||||||||||||||||||||
| Year ended 08/31/11 | 8.84 | (0.09 | ) | 1.97 | 1.88 | — | 10.72 | 21.27 | (d) | 233,467 | 1.13 | 1.17 | (0.76 | ) | 114 | |||||||||||||||||||||||||||||||||
| Five months ended 08/31/10 | 9.73 | (0.03 | ) | (0.86 | ) | (0.89 | ) | — | 8.84 | (9.15 | )(d) | 199,603 | 1.09 | (f) | 1.09 | (f) | (0.80 | )(f) | 63 | |||||||||||||||||||||||||||||
| Year ended 03/31/10 | 6.99 | (0.06 | ) | 2.80 | 2.74 | — | 9.73 | 39.20 | (n) | 267,593 | 1.14 | 1.14 | (0.76 | ) | 234 | |||||||||||||||||||||||||||||||||
| Year ended 03/31/09 | 10.20 | (0.07 | ) | (3.14 | ) | (3.21 | ) | — | 6.99 | (31.47 | )(n) | 91,594 | 1.15 | 1.15 | (0.75 | ) | 219 | |||||||||||||||||||||||||||||||
| Year ended 03/31/08 | 10.74 | (0.07 | ) | 0.27 | 0.20 | (0.74 | ) | 10.20 | 0.88 | (n) | 81,038 | 1.14 | 1.14 | (0.63 | ) | 194 | ||||||||||||||||||||||||||||||||
| Year ended 03/31/07 | 10.80 | (0.07 | ) | 0.01 | (0.06 | ) | — | 10.74 | (0.56 | )(n) | 15,477 | 1.22 | 1.22 | (0.67 | ) | 321 | ||||||||||||||||||||||||||||||||
| (a) | Calculated using average shares outstanding. | |
| (b) | Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share. | |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. | |
| (d) | 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. | |
| (e) | Ratios are annualized and based on average daily net assets (000’s omitted) of $807,175, $15,929, $49,145, and $219,012 for Class A, Class B, Class C, and Class Y Class shares, respectively. | |
| (f) | Annualized. | |
| (g) | Assumes reinvestment of all distributions for the period and does not include payment of the maximum sales charge of 5.75% or contingent deferred sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be imposed on certain redemptions made within eighteen months of purchase. If the sales charges were included, total returns would be lower. These returns include combined Rule 12b-1 and service fees of up to 0.25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
| (h) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.24%, 0.27% and 0.54% for the six months ended February 29, 2012, the year ended August 31, 2011 and the five months ended August 31, 2010, respectively. | |
| (i) | Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 5%, charged on certain redemptions made within one year of purchase and declining to 0% after the fifth year. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
| (j) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fess of less than 1%. | |
| (k) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.93% for the year ended August 31, 2011. | |
| (l) | Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 1%, charged on certain redemptions made within one year of purchase. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
| (m) | On June 1, 2010, the Fund’s former Class I shares were reorganized into Class Y Shares. | |
| (n) | Assumes reinvestment of all distributions for the period. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
16 Invesco Van Kampen Small Cap Growth 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, and redemption fees, 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 September 1, 2011 through February 29, 2012.
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, contingent deferred sales charges on redemptions, and redemption fees, 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.
| HYPOTHETICAL | ||||||||||||||||||||||||||||||
| (5% annual return before | ||||||||||||||||||||||||||||||
| ACTUAL | expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Ending | Expenses | Annualized | |||||||||||||||||||||||||
| Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||||||||||||||||||||
| Class | (09/01/11) | (02/29/12)1 | Period2 | (02/29/12) | Period2 | Ratio | ||||||||||||||||||||||||
| A | $ | 1,000.00 | $ | 1,139.00 | $ | 7.29 | $ | 1,018.05 | $ | 6.87 | 1.37 | % | ||||||||||||||||||
| B | 1,000.00 | 1,139.40 | 7.26 | 1,018.08 | 6.85 | 1.37 | ||||||||||||||||||||||||
| C | 1,000.00 | 1,135.50 | 11.26 | 1,014.32 | 10.62 | 2.12 | ||||||||||||||||||||||||
| Y | 1,000.00 | 1,139.80 | 5.96 | 1,019.29 | 5.62 | 1.12 | ||||||||||||||||||||||||
| 1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2011 through February 29, 2012, 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 182/366 to reflect the most recent fiscal half year. |
17 Invesco Van Kampen Small Cap Growth Fund
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Invesco privacy policy
You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.
Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.
Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.
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 811-09913 and 333-36074.
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 12 months ended June 30, 2011, 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 U.S. 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.
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 U.S. 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.
| VK-SCG-SAR-1 | Invesco Distributors, Inc. |
ITEM 2. CODE OF ETHICS.
| As of the end of the period covered by this report, the Registrant had adopted a code of ethics (the “Code”) that applies to the Registrant’s principal executive officer (“PEO”) and principal financial officer (“PFO”). There were no amendments to the Code 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.
| Not applicable. |
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
| Not applicable. |
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 INVESTMENT 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 March 21, 2012, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal Executive Officer (“PEO”) and Principal Financial Officer (“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 March 21, 2012, 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 the report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
ITEM 12. EXHIBITS.
| 12(a) (1) | Not applicable. | |
| 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. |
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 Counselor Series Trust (Invesco Counselor Series Trust)
| By: | /s/ Philip A. Taylor | |||
| Principal Executive Officer | ||||
| Date: | May 7, 2012 |
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/ Philip A. Taylor | |||
| Principal Executive Officer | ||||
| Date: | May 7, 2012 | |||
| By: | /s/ Sheri Morris | |||
| Sheri Morris | ||||
| Principal Financial Officer | ||||
| Date: | May 7, 2012 |
EXHIBIT INDEX
| 12(a) (1) | Not applicable. | |
| 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. |