UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-09913
AIM Counselor Series Trust (Invesco Counselor Series Trust)
(Exact name of registrant as specified in charter)
11 Greenway Plaza, Suite 1000 Houston, Texas 77046
(Address of principal executive offices) (Zip code)
Sheri Morris 11 Greenway Plaza, Suite 1000 Houston, Texas 77046
(Name and address of agent for service)
Registrant’s telephone number, including area code: (713)626-1919
Date of fiscal year end: 8/31
Date of reporting period: 2/28/19
Item 1. Report to Stockholders.
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![]() | Semiannual Report to Shareholders
| February 28, 2019 | ||
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Invesco American Franchise Fund
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Nasdaq: | ||||
A: VAFAX ∎ C: VAFCX ∎ R: VAFRX ∎ Y: VAFIX ∎ R5: VAFNX ∎ R6: VAFFX |
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2
| Fund Performance
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4
| Letters to Shareholders
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5
| Schedule of Investments
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8
| Financial Statements
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11
| Notes to Financial Statements
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17
| Financial Highlights
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18 | Fund Expenses
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800 959 4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most currentmonth-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, 8/31/18 to 2/28/19, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) orfront-end sales charges, which would have reduced performance.
|
| |||
Class A Shares | -7.02 | % | ||
Class C Shares | -7.34 | |||
Class R Shares | -7.09 | |||
Class Y Shares | -6.87 | |||
Class R5 Shares | -6.85 | |||
Class R6 Shares | -6.82 | |||
S&P 500 Index▼(Broad Market Index) | -3.04 | |||
Russell 1000 Growth Index∎ (Style-Specific Index) | -4.52 | |||
LipperLarge-Cap Growth Funds Index◆(Peer Group Index) | -3.34 | |||
Source(s):▼FactSet Research Systems Inc.;∎RIMES Technologies Corp.;◆Lipper Inc. |
|
TheS&P 500®Indexis an unmanaged index considered representative of the US stock market.
TheRussell 1000®Growth Indexis an unmanaged index considered representative oflarge-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.
TheLipperLarge-Cap Growth Funds Indexis an unmanaged index considered representative oflarge-cap growth funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes described 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.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us.Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
2 Invesco American Franchise Fund
Average Annual Total Returns |
| |||||
As of 2/28/19, including maximum applicable sales charges |
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Class A Shares |
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Inception (6/23/05) | 8.55 | % | ||||
10 Years | 15.50 | |||||
5 Years | 8.15 | |||||
1 Year | -3.87 | |||||
Class C Shares* |
| |||||
Inception (6/23/05) | 8.42 | % | ||||
10 Years | 15.33 | |||||
5 Years | 8.58 | |||||
1 Year | 0.08 | |||||
Class R Shares |
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10 Years | 15.87 | % | ||||
5 Years | 9.12 | |||||
1 Year | 1.52 | |||||
Class Y Shares |
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Inception (6/23/05) | 9.26 | % | ||||
10 Years | 16.45 | |||||
5 Years | 9.66 | |||||
1 Year | 2.03 | |||||
Class R5 Shares |
| |||||
10 Years | 16.50 | % | ||||
5 Years | 9.75 | |||||
1 Year | 2.02 | |||||
Class R6 Shares |
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10 Years | 16.48 | % | ||||
5 Years | 9.85 | |||||
1 Year | 2.15 | |||||
*Effective January 26, 2019, Class C share performance includes the conversion to A shares after 10 years. |
|
Effective June 1, 2010, Class A, 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 C and Class Y shares, respectively, of Invesco Van Kampen American Franchise Fund (renamed Invesco American Franchise Fund). Returns shown above, prior to June 1, 2010, for Class A, Class C and Class Y shares are blended returns of the predecessor fund and Invesco 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 higher12b-1 fees applicable to Class R shares.
Average Annual Total Returns |
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As of 12/31/18, the most recent calendar quarter end, including maximum applicable sales charges |
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Class A Shares |
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Inception (6/23/05) | 7.65 | % | ||||
10 Years | 12.12 | |||||
5 Years | 6.03 | |||||
1 Year | -9.08 | |||||
Class C Shares |
| |||||
Inception (6/23/05) | 7.32 | % | ||||
10 Years | 11.93 | |||||
5 Years | 6.44 | |||||
1 Year | -5.34 | |||||
Class R Shares |
| |||||
10 Years | 12.47 | % | ||||
5 Years | 6.96 | |||||
1 Year | -4.01 | |||||
Class Y Shares |
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Inception (6/23/05) | 8.36 | % | ||||
10 Years | 13.02 | |||||
5 Years | 7.51 | |||||
1 Year | -3.50 | |||||
Class R5 Shares |
| |||||
10 Years | 13.07 | % | ||||
5 Years | 7.60 | |||||
1 Year | -3.50 | |||||
Class R6 Shares |
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10 Years | 13.06 | % | ||||
5 Years | 7.68 | |||||
1 Year | -3.43 |
Class R5 shares incepted on December 22, 2010. Performance shown prior to that date is that of the predecessor fund’s Class A shares and includes the12b-1 fees applicable to Class A shares.
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recentmonth-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, Class R5 and Class R6 shares was 1.01%, 1.76%, 1.26%, 0.76%, 0.71% and 0.62%, 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 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, Class R5 and Class R6 shares do not have afront-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 Invesco American Franchise Fund
Letters to Shareholders
![]() | Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time; monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory andsub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper, Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
![]() | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward. Our website,invesco.com/us, offers a wide range of market insights and investment |
perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
4 Invesco American Franchise Fund
Schedule of Investments(a)
February 28, 2019
(Unaudited)
Shares | Value | |||||||
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Common Stocks & Other Equity Interests-99.70% |
| |||||||
Aerospace & Defense-3.79% |
| |||||||
Airbus S.E. (France) | 1,359,757 | $ | 176,126,579 | |||||
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Boeing Co. (The) | 172,986 | 76,106,921 | ||||||
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Harris Corp. | 411,067 | 67,797,280 | ||||||
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Raytheon Co. | 387,099 | 72,193,964 | ||||||
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392,224,744 | ||||||||
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Agricultural & Farm Machinery-0.60% |
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Deere & Co. | 379,693 | 62,284,840 | ||||||
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Application Software-4.80% |
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Adobe Systems, Inc.(b) | 555,076 | 145,707,450 | ||||||
| ||||||||
salesforce.com, inc.(b) | 2,147,126 | 351,377,170 | ||||||
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497,084,620 | ||||||||
| ||||||||
Asset Management & Custody Banks-0.23% |
| |||||||
KKR & Co., Inc. | 1,089,648 | 24,222,875 | ||||||
| ||||||||
Biotechnology-0.70% |
| |||||||
Alexion Pharmaceuticals, Inc.(b) | 423,972 | 57,376,131 | ||||||
| ||||||||
BioMarin Pharmaceutical, Inc.(b) | 167,124 | 15,585,984 | ||||||
| ||||||||
72,962,115 | ||||||||
| ||||||||
Commodity Chemicals-0.60% |
| |||||||
Lyondell Chemical Co., Class A | 722,522 | 61,790,081 | ||||||
| ||||||||
Consumer Electronics-1.45% |
| |||||||
Sony Corp. (Japan) | 3,114,800 | 149,692,337 | ||||||
| ||||||||
Data Processing & Outsourced Services-8.86% |
| |||||||
First Data Corp.(b) | 2,277,871 | 57,265,677 | ||||||
| ||||||||
Mastercard, Inc., Class A | 1,115,949 | 250,831,857 | ||||||
| ||||||||
PayPal Holdings, Inc.(b) | 2,007,821 | 196,907,005 | ||||||
| ||||||||
Visa, Inc., Class A | 2,778,931 | 411,615,260 | ||||||
| ||||||||
916,619,799 | ||||||||
| ||||||||
Distillers & Vintners-0.56% |
| |||||||
Constellation Brands, Inc., Class A | 343,964 | 58,184,950 | ||||||
| ||||||||
Diversified Support Services-1.36% |
| |||||||
Cintas Corp. | 679,601 | 140,405,567 | ||||||
| ||||||||
Environmental & Facilities Services-1.52% |
| |||||||
Republic Services, Inc. | 623,248 | 48,881,341 | ||||||
| ||||||||
Waste Management, Inc. | 1,068,144 | 108,149,580 | ||||||
| ||||||||
157,030,921 | ||||||||
| ||||||||
Financial Exchanges & Data-2.03% |
| |||||||
London Stock Exchange Group PLC (United Kingdom) | 1,363,644 | 81,516,701 | ||||||
| ||||||||
S&P Global, Inc. | 642,039 | 128,645,354 | ||||||
| ||||||||
210,162,055 | ||||||||
|
Shares | Value | |||||||
| ||||||||
Health Care Equipment-5.05% | ||||||||
Abbott Laboratories | 1,170,742 | $ | 90,872,994 | |||||
| ||||||||
Boston Scientific Corp.(b) | 2,583,438 | 103,647,533 | ||||||
| ||||||||
Intuitive Surgical, Inc.(b) | 233,896 | 128,083,788 | ||||||
| ||||||||
Stryker Corp. | 611,182 | 115,213,919 | ||||||
| ||||||||
Teleflex Inc. | 291,762 | 84,564,298 | ||||||
| ||||||||
522,382,532 | ||||||||
| ||||||||
Home Improvement Retail-3.74% | ||||||||
Home Depot, Inc. (The) | 353,296 | 65,409,221 | ||||||
| ||||||||
Lowe’s Cos., Inc. | 3,056,386 | 321,195,605 | ||||||
| ||||||||
386,604,826 | ||||||||
| ||||||||
Hotels, Resorts & Cruise Lines-2.96% |
| |||||||
Norwegian Cruise Line Holdings Ltd.(b) | 1,122,885 | 62,353,804 | ||||||
| ||||||||
Royal Caribbean Cruises Ltd. | 2,058,434 | 243,883,260 | ||||||
| ||||||||
306,237,064 | ||||||||
| ||||||||
Industrial Gases-0.83% | ||||||||
Air Products and Chemicals, Inc. | 474,065 | 85,891,097 | ||||||
| ||||||||
Industrial Machinery-0.49% | ||||||||
Stanley Black & Decker, Inc. | 386,137 | 51,136,123 | ||||||
| ||||||||
Interactive Home Entertainment-5.71% |
| |||||||
Activision Blizzard, Inc. | 4,337,369 | 182,776,729 | ||||||
| ||||||||
Electronic Arts, Inc.(b) | 1,301,699 | 124,676,730 | ||||||
| ||||||||
Nintendo Co., Ltd. (Japan) | 791,100 | 216,536,615 | ||||||
| ||||||||
Take-Two Interactive Software, | 769,791 | 67,171,963 | ||||||
| ||||||||
591,162,037 | ||||||||
| ||||||||
Interactive Media & Services-10.78% |
| |||||||
Alphabet, Inc., Class A(b) | 547,591 | 616,888,641 | ||||||
| ||||||||
Facebook, Inc., Class A(b) | 3,088,819 | 498,689,828 | ||||||
| ||||||||
1,115,578,469 | ||||||||
| ||||||||
Internet & Direct Marketing Retail-12.92% |
| |||||||
Alibaba Group Holding Ltd., ADR (China)(b) | 2,224,624 | 407,172,931 | ||||||
| ||||||||
Amazon.com, Inc.(b) | 519,509 | 851,906,443 | ||||||
| ||||||||
Booking Holdings, Inc.(b) | 46,104 | 78,240,332 | ||||||
| ||||||||
1,337,319,706 | ||||||||
| ||||||||
Investment Banking & Brokerage-0.54% |
| |||||||
Goldman Sachs Group, Inc. (The) | 285,522 | 56,162,177 | ||||||
| ||||||||
Life Sciences Tools & Services-4.32% |
| |||||||
Illumina, Inc.(b) | 613,957 | 192,027,331 | ||||||
| ||||||||
IQVIA Holdings, Inc.(b) | 850,123 | 119,102,232 | ||||||
| ||||||||
Thermo Fisher Scientific, Inc. | 525,058 | 136,289,305 | ||||||
| ||||||||
447,418,868 | ||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 Invesco American Franchise Fund
Shares | Value | |||||||
| ||||||||
Managed Health Care-3.40% | ||||||||
Anthem, Inc. | 230,535 | $ | 69,328,791 | |||||
| ||||||||
UnitedHealth Group, Inc. | 1,165,402 | 282,283,672 | ||||||
| ||||||||
351,612,463 | ||||||||
| ||||||||
Movies & Entertainment-2.06% | ||||||||
Netflix, Inc.(b) | 442,353 | 158,406,609 | ||||||
| ||||||||
Vivendi S.A. (France) | 1,863,328 | 54,547,423 | ||||||
| ||||||||
212,954,032 | ||||||||
| ||||||||
Oil & Gas Exploration & Production-0.90% |
| |||||||
Diamondback Energy, Inc. | 226,614 | 23,325,379 | ||||||
| ||||||||
Noble Energy, Inc. | 3,159,711 | 69,987,599 | ||||||
| ||||||||
93,312,978 | ||||||||
| ||||||||
Oil & Gas Refining & Marketing-1.33% |
| |||||||
Marathon Petroleum Corp. | 2,224,542 | 137,943,849 | ||||||
| ||||||||
Packaged Foods & Meats-0.99% | ||||||||
Tyson Foods, Inc., Class A | 1,666,681 | 102,767,550 | ||||||
| ||||||||
Pharmaceuticals-1.22% | ||||||||
Zoetis, Inc. | 1,340,094 | 126,277,058 | ||||||
| ||||||||
Railroads-1.28% | ||||||||
Canadian Pacific Railway Ltd. (Canada) | 268,028 | 55,342,421 | ||||||
| ||||||||
Union Pacific Corp. | 458,855 | 76,949,984 | ||||||
| ||||||||
132,292,405 | ||||||||
| ||||||||
Semiconductor Equipment-1.40% |
| |||||||
Applied Materials, Inc. | 1,563,635 | 59,949,766 | ||||||
| ||||||||
ASML Holding N.V., New York Shares (Netherlands) | 466,584 | 85,324,216 | ||||||
| ||||||||
145,273,982 | ||||||||
| ||||||||
Semiconductors-1.46% | ||||||||
Broadcom, Inc. | 293,320 | 80,768,595 | ||||||
|
Shares | Value | |||||||
| ||||||||
Semiconductors-(continued) | ||||||||
NVIDIA Corp. | 458,361 | $ | 70,706,768 | |||||
| ||||||||
151,475,363 | ||||||||
| ||||||||
Specialty Chemicals-0.69% | ||||||||
Sherwin-Williams Co. (The) | 164,160 | 71,114,112 | ||||||
| ||||||||
Systems Software-6.70% | ||||||||
Microsoft Corp. | 3,979,039 | 445,771,739 | ||||||
| ||||||||
Palo Alto Networks, Inc.(b) | 624,619 | 153,824,921 | ||||||
| ||||||||
ServiceNow, Inc.(b) | 390,172 | 93,422,784 | ||||||
| ||||||||
693,019,444 | ||||||||
| ||||||||
Technology Hardware, Storage & Peripherals-2.13% |
| |||||||
Apple Inc. | 1,272,131 | 220,269,483 | ||||||
| ||||||||
Tobacco-2.30% | ||||||||
Altria Group, Inc. | 697,057 | 36,532,757 | ||||||
| ||||||||
Philip Morris International Inc. | 2,323,473 | 202,002,743 | ||||||
| ||||||||
238,535,500 | ||||||||
| ||||||||
Total Common Stocks & Other Equity Interests |
| 10,319,406,022 | ||||||
| ||||||||
Money Market Funds-0.33% | ||||||||
Invesco Government & Agency Portfolio-Institutional Class, 2.30%(c) | 11,951,919 | 11,951,919 | ||||||
| ||||||||
Invesco Liquid Assets Portfolio- Institutional Class, 2.51%(c) | 8,538,012 | 8,540,573 | ||||||
| ||||||||
Invesco Treasury Portfolio-Institutional Class, 2.29%(c) | 13,659,335 | 13,659,335 | ||||||
| ||||||||
Total Money Market Funds |
| 34,151,827 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES-100.03% |
| 10,353,557,849 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES-(0.03)% |
| (3,059,079 | ) | |||||
| ||||||||
NET ASSETS-100.00% | $ | 10,350,498,770 | ||||||
|
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) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the7-day SEC standardized yield as of February 28, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco American Franchise Fund
Portfolio Composition
By sector, based on Net Assets
as of February 28, 2019
Information Technology | 25.35% | |||
| ||||
Consumer Discretionary | 21.07 | |||
| ||||
Communication Services | 18.55 | |||
| ||||
Health Care | 14.69 | |||
| ||||
Industrials | 9.04 | |||
| ||||
Consumer Staples | 3.85 | |||
| ||||
Financials | 2.80 | |||
| ||||
Energy | 2.23 | |||
| ||||
Materials | 2.12 | |||
| ||||
Money Market Funds, Plus Other Assets Less Liabilities | 0.30 | |||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco American Franchise Fund
Statement of Assets and Liabilities
February 28, 2019
(Unaudited)
Assets: | ||||
Investments in securities, at value | $ | 10,319,406,022 | ||
| ||||
Investments in affiliated money market funds, at value (Cost $34,151,635) | 34,151,827 | |||
| ||||
Foreign currencies, at value (Cost $269) | 274 | |||
| ||||
Receivable for: | ||||
Investments sold | 53,175,789 | |||
| ||||
Fund shares sold | 1,377,842 | |||
| ||||
Dividends | 6,913,480 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 2,428,107 | |||
| ||||
Other assets | 168,660 | |||
| ||||
Total assets | 10,417,622,001 | |||
| ||||
Liabilities: | ||||
Payable for: | ||||
Investments purchased | 52,359,934 | |||
| ||||
Fund shares reacquired | 7,515,927 | |||
| ||||
Accrued fees to affiliates | 4,187,097 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 22,901 | |||
| ||||
Accrued other operating expenses | 349,555 | |||
| ||||
Trustee deferred compensation and retirement plans | 2,687,817 | |||
| ||||
Total liabilities | 67,123,231 | |||
| ||||
Net assets applicable to shares outstanding | $ | 10,350,498,770 | ||
| ||||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 5,955,222,772 | ||
| ||||
Distributable earnings | 4,395,275,998 | |||
| ||||
$ | 10,350,498,770 | |||
| ||||
Net Assets: | ||||
Class A | $ | 9,629,282,962 | ||
| ||||
Class C | $ | 147,934,464 | ||
| ||||
Class R | $ | 31,806,640 | ||
| ||||
Class Y | $ | 329,191,118 | ||
| ||||
Class R5 | $ | 81,221,522 | ||
| ||||
Class R6 | $ | 131,062,064 | ||
|
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 492,716,616 | |||
| ||||
Class C | 8,350,486 | |||
| ||||
Class R | 1,666,497 | |||
| ||||
Class Y | 16,420,765 | |||
| ||||
Class R5 | 4,040,340 | |||
| ||||
Class R6 | 6,478,124 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 19.54 | ||
| ||||
Maximum offering price per share | $ | 20.68 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 17.72 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 19.09 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 20.05 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 20.10 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 20.23 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco American Franchise Fund
Statement of Operations
For the six months ended February 28, 2019
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $249,283) | $ | 43,392,129 | ||
| ||||
Dividends from affiliated money market funds (includes securities lending income of $7,094) | 933,455 | |||
| ||||
Total investment income | 44,325,584 | |||
| ||||
Expenses: | ||||
Advisory fees | 29,869,105 | |||
| ||||
Administrative services fees | 496,514 | |||
| ||||
Custodian fees | 15,212 | |||
| ||||
Distribution fees: | ||||
Class A | 11,666,432 | |||
| ||||
Class C | 1,581,466 | |||
| ||||
Class R | 83,245 | |||
| ||||
Transfer agent fees - A, C, R and Y | 7,134,198 | |||
| ||||
Transfer agent fees - R5 | 38,798 | |||
| ||||
Transfer agent fees - R6 | 4,527 | |||
| ||||
Trustees’ and officers’ fees and benefits | 90,544 | |||
| ||||
Registration and filing fees | 96,348 | |||
| ||||
Reports to shareholders | 183,879 | |||
| ||||
Professional services fees | 32,872 | |||
| ||||
Other | 36,471 | |||
| ||||
Total expenses | 51,329,611 | |||
| ||||
Less: Fees waived and expense offset arrangement(s) | (128,508 | ) | ||
| ||||
Net expenses | 51,201,103 | |||
| ||||
Net investment income (loss) | (6,875,519 | ) | ||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
| ||||
Investment securities (includes net gains (losses) from securities sold to affiliates of $(152,328)) | 374,497,380 | |||
| ||||
Foreign currencies | (71,102 | ) | ||
| ||||
374,426,278 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | (1,194,819,118 | ) | ||
| ||||
Foreign currencies | 1,240 | |||
| ||||
(1,194,817,878 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (820,391,600 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (827,267,119 | ) | |
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco American Franchise Fund
Statement of Changes in Net Assets
For the six months ended February 28, 2019 and the year ended August 31, 2018
(Unaudited)
February 28, 2019 | August 31, 2018 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | (6,875,519 | ) | $ | (19,723,687 | ) | ||
| ||||||||
Net realized gain | 374,426,278 | 958,613,075 | ||||||
| ||||||||
Change in net unrealized appreciation (depreciation) | (1,194,817,878 | ) | 1,056,071,409 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | (827,267,119 | ) | 1,994,960,797 | |||||
| ||||||||
Distributions to shareholders from distributable earnings(1): | ||||||||
Class A | (804,913,334 | ) | (478,520,623 | ) | ||||
| ||||||||
Class B | – | (2,479,794 | ) | |||||
| ||||||||
Class C | (33,225,403 | ) | (20,255,914 | ) | ||||
| ||||||||
Class R | (3,005,885 | ) | (1,865,721 | ) | ||||
| ||||||||
Class Y | (27,603,239 | ) | (13,953,873 | ) | ||||
| ||||||||
Class R5 | (6,608,373 | ) | (3,494,510 | ) | ||||
| ||||||||
Class R6 | (10,724,224 | ) | (6,684,184 | ) | ||||
| ||||||||
Total distributions to shareholders from distributable earnings | (886,080,458 | ) | (527,254,619 | ) | ||||
| ||||||||
Share transactions-net: | ||||||||
Class A | 652,348,101 | (145,332,102 | ) | |||||
| ||||||||
Class B | – | (62,310,041 | ) | |||||
| ||||||||
Class C | (181,021,639 | ) | (16,924,402 | ) | ||||
| ||||||||
Class R | (696,790 | ) | (888,078 | ) | ||||
| ||||||||
Class Y | 14,366,341 | 60,767,520 | ||||||
| ||||||||
Class R5 | 7,674,063 | 7,510,265 | ||||||
| ||||||||
Class R6 | 11,135,123 | (10,728,006 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | 503,805,199 | (167,904,844 | ) | |||||
| ||||||||
Net increase (decrease) in net assets | (1,209,542,378 | ) | 1,299,801,334 | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 11,560,041,148 | 10,260,239,814 | ||||||
| ||||||||
End of period | $ | 10,350,498,770 | $ | 11,560,041,148 | ||||
|
(1) | The Securities and Exchange Commission eliminated the requirement to disclose distribution components separately, except for tax return of capital. For the year ended August 31, 2018, distributions to shareholders from distributable earnings consisted of distributions from net realized gains. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco American Franchise Fund
Notes to Financial Statements
February 28, 2019
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco 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 anopen-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to seek long-term capital appreciation.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with afront-end sales charge unless certain waiver criteria are met. 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, Class R5 and Class R6 shares are sold at net asset value.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946,Financial Services - Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations– Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in theover-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments inopen-end andclosed-end registered investment companies that do not trade on an exchange are valued at theend-of-day net asset value per share. Investments inopen-end andclosed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such asinstitution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
11 Invesco American Franchise Fund
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 orlosses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on theex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination– For the purposes of making investment selection decisions and presentation in the Schedule of Investments, theinvestment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions– Distributions from net investment income, if any, are declared daily and paid monthly. Distributions from net realized capitalgain, if any, are generally declared and paid annually and recorded on theex-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 of 1986, asamended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses–Fees provided for under the Rule12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transferagency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets.Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates–The preparation of financial statements in conformity with accounting principles generally accepted in theUnited 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 theperiod-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 Fund is indemnifiedagainst certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Securities Lending– The Fund may lend portfolio securities having a market value up toone-third of the Fund’s total assets. Such loans aresecured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund |
12 Invesco American Franchise Fund
will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
J. | Foreign Currency Translations– Foreign currency is valued at the close of the NYSE based on quotations posted by banks and majorcurrency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the 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. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
K. | Forward Foreign Currency Contracts– The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt deliveryand settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount(non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the dailymark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |
| ||
First $250 million | 0.695% | |
| ||
Next $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% | |
|
For the six months ended February 28, 2019, the effective advisory fees incurred by the Fund was 0.58%.
Under the terms of a mastersub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “AffiliatedSub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such AffiliatedSub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such AffiliatedSub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2019, 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 C, Class R, Class Y, Class R5 and Class R6 shares to 2.00%, 2.75%, 2.25%, 1.75%, 1.75% and 1.75%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the
13 Invesco American Franchise Fund
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 ornon-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2019. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limit.
Further, the Adviser has contractually agreed, through at least June 30, 2020, 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 28, 2019, the Adviser waived advisory fees of $41,289.
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 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into asub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and 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 orsub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer agent fees.
Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A, 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% of Class C average daily net assets and up to 0.50% of Class R average daily net assets. The fees are accrued daily and paid monthly.
With respect to 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 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 28, 2019, expenses incurred under these arrangements are shown in the Statement of Operations asDistribution 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 28, 2019, IDI advised the Fund that IDI retained $383,681 infront-end sales commissions from the sale of Class A shares and $6,795 and $6,717 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the six months ended February 28, 2019, the Fund incurred $35,835 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 - | Prices are determined using quoted prices in an active market for identical assets. |
Level 2 - | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. |
Level 3 - | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of February 28, 2019. 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.
14 Invesco American Franchise Fund
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments in Securities | ||||||||||||||||
| ||||||||||||||||
Common Stocks & Other Equity Interests | $ | 9,722,503,068 | $ | 596,902,954 | $– | $ | 10,319,406,022 | |||||||||
| ||||||||||||||||
Money Market Funds | 34,151,827 | – | – | 34,151,827 | ||||||||||||
| ||||||||||||||||
Total Investments | $ | 9,756,654,895 | $ | 596,902,954 | $– | $ | 10,353,557,849 | |||||||||
|
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 Rule17a-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 28, 2019, the Fund engaged in securities purchases of $0 and securities sales of $443,535, which resulted in net realized gains (losses) of $(152,328).
NOTE 5–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $87,219.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefitsinclude 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, andTrustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan.Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any atperiod-end, are shown in the Statement of Assets and Liabilities under the payable captionAmount 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. The Fund may not purchase additional securities when any borrowings from banks exceed 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 GAAP. 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 fiscalyear-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. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of August 31, 2018.
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2019 was $2,453,363,964 and $2,823,162,937, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reportingperiod-end.
15 Invesco American Franchise Fund
Unrealized Appreciation (Depreciation) of Investments on a TaxBasis
| ||||
Aggregate unrealized appreciation of investments | $ | 4,199,376,554 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (79,785,987 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 4,119,590,567 | ||
|
Cost of investments for tax purposes is $6,233,967,282.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended February 28, 2019(a) | Year ended August 31, 2018 | |||||||||||||||
|
|
|
| |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 18,361,163 | $ | 354,157,531 | 15,878,174 | $ | 336,279,096 | ||||||||||
| ||||||||||||||||
Class B(b) | – | – | 11,213 | 222,192 | ||||||||||||
| ||||||||||||||||
Class C | 845,412 | 15,861,730 | 1,956,690 | 38,381,580 | ||||||||||||
| ||||||||||||||||
Class R | 118,217 | 2,336,593 | 385,858 | 7,948,431 | ||||||||||||
| ||||||||||||||||
Class Y | 2,044,167 | 41,808,606 | 5,667,513 | 123,150,034 | ||||||||||||
| ||||||||||||||||
Class R5 | 558,674 | 11,583,847 | 953,465 | 20,609,344 | ||||||||||||
| ||||||||||||||||
Class R6 | 598,667 | 12,129,274 | 1,100,474 | 23,450,394 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 42,328,670 | 759,771,875 | 23,082,251 | 454,951,201 | ||||||||||||
| ||||||||||||||||
Class B(b) | – | – | 127,537 | 2,441,051 | ||||||||||||
| ||||||||||||||||
Class C | 1,927,229 | 31,443,325 | 1,060,110 | 19,294,012 | ||||||||||||
| ||||||||||||||||
Class R | 171,297 | 3,004,543 | 96,419 | 1,865,721 | ||||||||||||
| ||||||||||||||||
Class Y | 1,242,260 | 22,857,584 | 576,480 | 11,593,017 | ||||||||||||
| ||||||||||||||||
Class R5 | 358,106 | 6,607,064 | 173,387 | 3,493,738 | ||||||||||||
| ||||||||||||||||
Class R6 | 572,179 | 10,625,365 | 327,912 | 6,636,942 | ||||||||||||
| ||||||||||||||||
Conversion of Class B shares to Class A shares:(c) | ||||||||||||||||
Class A | – | – | 2,428,444 | 52,988,647 | ||||||||||||
| ||||||||||||||||
Class B | – | – | (2,523,779 | ) | (52,988,647 | ) | ||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (23,291,700 | ) | (461,581,305 | ) | (47,013,118 | ) | (989,551,046 | ) | ||||||||
| ||||||||||||||||
Class B(b) | – | – | (603,399 | ) | (11,984,637 | ) | ||||||||||
| ||||||||||||||||
Class C | (13,352,845 | ) | (228,326,694 | ) | (3,804,108 | ) | (74,599,994 | ) | ||||||||
| ||||||||||||||||
Class R | (324,405 | ) | (6,037,926 | ) | (512,785 | ) | (10,702,230 | ) | ||||||||
| ||||||||||||||||
Class Y | (2,482,077 | ) | (50,299,849 | ) | (3,442,724 | ) | (73,975,531 | ) | ||||||||
| ||||||||||||||||
Class R5 | (515,041 | ) | (10,516,848 | ) | (767,131 | ) | (16,592,817 | ) | ||||||||
| ||||||||||||||||
Class R6 | (554,786 | ) | (11,619,516 | ) | (1,871,050 | ) | (40,815,342 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | 28,605,187 | $ | 503,805,199 | (6,712,167 | ) | $ | (167,904,844 | ) | ||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 27% 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) | Class B shares activity for the period September 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
16 Invesco 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 | Ratio of net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(losses) | to average | to average net | investment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset | Net | on securities | Dividends | Distributions | net assets | assets without | income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
value, | investment | (both | Total from | from net | from net | Net asset | Net assets, | with fee waivers | fee waivers | (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 (b) | (000’s omitted) | absorbed | absorbed | net assets | turnover (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $ | 23.12 | $ | (0.01 | ) | $ | (1.77 | ) | $ | (1.78 | ) | $ | – | $ | (1.80 | ) | $ | (1.80 | ) | $ | 19.54 | (7.02 | )% | $ | 9,629,283 | 0.99 | %(d) | 0.99 | %(d) | (0.12 | )%(d) | 24 | % | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 20.25 | (0.04 | ) | 3.97 | 3.93 | – | (1.06 | ) | (1.06 | ) | 23.12 | 20.30 | 10,524,889 | 1.01 | 1.01 | (0.17 | ) | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 16.96 | (0.03 | ) | 3.99 | 3.96 | – | (0.67 | ) | (0.67 | ) | 20.25 | 24.19 | 9,333,084 | 1.06 | 1.06 | �� | (0.15 | ) | 48 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 16.49 | (0.01 | ) | 1.30 | 1.29 | – | (0.82 | ) | (0.82 | ) | 16.96 | 7.99 | 8,253,739 | 1.08 | 1.08 | (0.04 | ) | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 18.07 | (0.05 | ) | 0.08 | 0.03 | – | (1.61 | ) | (1.61 | ) | 16.49 | 0.27 | 8,320,796 | 1.05 | 1.05 | (0.28 | ) | 74 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 14.82 | (0.04 | ) | 3.99 | 3.95 | (0.02 | ) | (0.68 | ) | (0.70 | ) | 18.07 | 27.22 | 9,034,217 | 1.08 | 1.08 | (0.27 | ) | 77 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class C |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 21.23 | (0.08 | ) | (1.63 | ) | (1.71 | ) | – | (1.80 | ) | (1.80 | ) | 17.72 | (7.34 | ) | 147,934 | 1.74 | (d) | 1.74 | (d) | (0.87 | )(d) | 24 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 18.81 | (0.18 | ) | 3.66 | 3.48 | – | (1.06 | ) | (1.06 | ) | 21.23 | 19.43 | 401,863 | 1.76 | 1.76 | (0.92 | ) | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 15.92 | (0.15 | ) | 3.71 | 3.56 | – | (0.67 | ) | (0.67 | ) | 18.81 | 23.23 | 370,960 | 1.81 | 1.81 | (0.90 | ) | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 15.64 | (0.12 | ) | 1.22 | 1.10 | – | (0.82 | ) | (0.82 | ) | 15.92 | 7.18 | 367,233 | 1.83 | 1.83 | (0.79 | ) | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 17.34 | (0.17 | ) | 0.08 | (0.09 | ) | – | (1.61 | ) | (1.61 | ) | 15.64 | (0.46 | ) | 381,264 | 1.80 | 1.80 | (1.03 | ) | 74 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 14.34 | (0.16 | ) | 3.84 | 3.68 | – | (0.68 | ) | (0.68 | ) | 17.34 | 26.23 | 417,687 | 1.83 | 1.83 | (1.02 | ) | 77 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 22.65 | (0.04 | ) | (1.72 | ) | (1.76 | ) | – | (1.80 | ) | (1.80 | ) | 19.09 | (7.09 | ) | 31,807 | 1.24 | (d) | 1.24 | (d) | (0.37 | )(d) | 24 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 19.91 | (0.09 | ) | 3.89 | 3.80 | – | (1.06 | ) | (1.06 | ) | 22.65 | 19.99 | 38,537 | 1.26 | 1.26 | (0.42 | ) | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 16.72 | (0.07 | ) | 3.93 | 3.86 | – | (0.67 | ) | (0.67 | ) | 19.91 | 23.93 | 34,479 | 1.31 | 1.31 | (0.40 | ) | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 16.31 | (0.05 | ) | 1.28 | 1.23 | – | (0.82 | ) | (0.82 | ) | 16.72 | 7.70 | 28,686 | 1.33 | 1.33 | (0.29 | ) | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 17.93 | (0.09 | ) | 0.08 | (0.01 | ) | – | (1.61 | ) | (1.61 | ) | 16.31 | 0.03 | 30,716 | 1.30 | 1.30 | (0.53 | ) | 74 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 14.74 | (0.09 | ) | 3.96 | 3.87 | – | (0.68 | ) | (0.68 | ) | 17.93 | 26.83 | 31,760 | 1.33 | 1.33 | (0.52 | ) | 77 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 23.63 | 0.01 | (1.79 | ) | (1.78 | ) | – | (1.80 | ) | (1.80 | ) | 20.05 | (6.87 | ) | 329,191 | 0.74 | (d) | 0.74 | (d) | 0.13 | (d) | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 20.62 | 0.02 | 4.05 | 4.07 | – | (1.06 | ) | (1.06 | ) | 23.63 | 20.63 | 368,991 | 0.76 | 0.76 | 0.08 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 17.22 | 0.02 | 4.05 | 4.07 | – | (0.67 | ) | (0.67 | ) | 20.62 | 24.47 | 264,309 | 0.81 | 0.81 | 0.10 | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 16.69 | 0.04 | 1.31 | 1.35 | – | (0.82 | ) | (0.82 | ) | 17.22 | 8.26 | 147,246 | 0.83 | 0.83 | 0.21 | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 18.22 | (0.01 | ) | 0.09 | 0.08 | – | (1.61 | ) | (1.61 | ) | 16.69 | 0.56 | 152,179 | 0.80 | 0.80 | (0.03 | ) | 74 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 14.93 | (0.00 | ) | 4.01 | 4.01 | (0.04 | ) | (0.68 | ) | (0.72 | ) | 18.22 | 27.48 | 141,094 | 0.83 | 0.83 | (0.02 | ) | 77 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 23.68 | 0.02 | (1.80 | ) | (1.78 | ) | – | (1.80 | ) | (1.80 | ) | 20.10 | (6.85 | ) | 81,222 | 0.70 | (d) | 0.70 | (d) | 0.17 | (d) | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 20.66 | 0.03 | 4.05 | 4.08 | – | (1.06 | ) | (1.06 | ) | 23.68 | 20.64 | 86,177 | 0.71 | 0.71 | 0.13 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 17.23 | 0.03 | 4.07 | 4.10 | – | (0.67 | ) | (0.67 | ) | 20.66 | 24.63 | 67,740 | 0.72 | 0.72 | 0.19 | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 16.68 | 0.05 | 1.32 | 1.37 | – | (0.82 | ) | (0.82 | ) | 17.23 | 8.39 | 53,789 | 0.71 | 0.71 | 0.33 | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 18.20 | 0.01 | 0.08 | 0.09 | – | (1.61 | ) | (1.61 | ) | 16.68 | 0.62 | 50,052 | 0.71 | 0.71 | 0.06 | 74 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 14.90 | 0.02 | 4.01 | 4.03 | (0.05 | ) | (0.68 | ) | (0.73 | ) | 18.20 | 27.65 | 52,164 | 0.70 | 0.70 | 0.11 | 77 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 23.81 | 0.03 | (1.81 | ) | (1.78 | ) | – | (1.80 | ) | (1.80 | ) | 20.23 | (6.82 | ) | 131,062 | 0.61 | (d) | 0.61 | (d) | 0.26 | (d) | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 20.75 | 0.05 | 4.07 | 4.12 | – | (1.06 | ) | (1.06 | ) | 23.81 | 20.75 | 139,584 | 0.62 | 0.62 | 0.22 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 17.29 | 0.05 | 4.08 | 4.13 | – | (0.67 | ) | (0.67 | ) | 20.75 | 24.72 | 130,807 | 0.64 | 0.64 | 0.27 | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 16.72 | 0.07 | 1.32 | 1.39 | – | (0.82 | ) | (0.82 | ) | 17.29 | 8.49 | 120,754 | 0.63 | 0.63 | 0.42 | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 18.22 | 0.03 | 0.08 | 0.11 | – | (1.61 | ) | (1.61 | ) | 16.72 | 0.73 | 86,444 | 0.62 | 0.62 | 0.15 | 74 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 14.92 | 0.03 | 4.01 | 4.04 | (0.06 | ) | (0.68 | ) | (0.74 | ) | 18.22 | 27.69 | 137,509 | 0.63 | 0.63 | 0.18 | 77 |
(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 year ended August 31, 2014, the portfolio turnover calculation excludes the value of securities purchased of $1,921,954,452 and sales of $1,568,687,370 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco Constellation Fund into the Fund. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $9,410,492, $318,915, $33,574, $327,891, $78,818 and $128,056 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
17 Invesco 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, 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, 2018 through February 28, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Expense Ratio | ||||||||||
Beginning Account Value (09/01/18) | Ending Account Value (02/28/19)1 | Expenses Paid During Period 2 | Ending Account Value (02/28/19) | Expenses Paid During Period 2 | ||||||||
Class A | $1,000.00 | $929.80 | $4.74 | $1,019.89 | $4.96 | 0.99% | ||||||
Class C | 1,000.00 | 926.60 | 8.31 | 1,016.17 | 8.70 | 1.74 | ||||||
Class R | 1,000.00 | 929.10 | 5.93 | 1,018.65 | 6.21 | 1.24 | ||||||
Class Y | 1,000.00 | 931.30 | 3.54 | 1,021.12 | 3.71 | 0.74 | ||||||
Class R5 | 1,000.00 | 931.50 | 3.35 | 1,021.32 | 3.51 | 0.70 | ||||||
Class R6 | 1,000.00 | 931.80 | 2.92 | 1,021.77 | 3.06 | 0.61 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2018 through February 28, 2019, 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 181/365 to reflect the most recent fiscal half year. |
18 Invesco American Franchise Fund
Explore High-Conviction Investing with Invesco
Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
∎ Fund reports and prospectuses
∎ Quarterly statements
∎ Daily confirmations
∎ Tax forms
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on FormN-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s FormsN-Q (or any successor Form) on the SEC website at sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov. | ![]() | |
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd. |
SEC file numbers:811-09913 and333-36074 | Invesco Distributors, Inc. | VK-AMFR-SAR-1 | 04222019 0757 |
| ||||
![]() | Semiannual Report to Shareholders
| February 28, 2019 | ||
| ||||
Invesco California Tax-Free Income Fund
| ||||
Nasdaq: | ||||
A: CLFAX∎ C: CLFCX∎ Y: CLFDX∎ R6: CLFSX |
| ||||
2 | Fund Performance | |||
4 | Letters to Shareholders | |||
5 | Schedule of Investments | |||
14 | Financial Statements | |||
18 | Notes to Financial Statements | |||
24 | Financial Highlights | |||
25 | Fund Expenses |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800 959 4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most currentmonth-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, 8/31/18 to 2/28/19, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) orfront-end sales charges, which would have reduced performance.
Class A Shares | 0.94 | % | ||
Class C Shares | 0.76 | |||
Class Y Shares | 1.06 | |||
Class R6 Shares | 1.19 | |||
S&P Municipal Bond Index▼ (Broad Market Index) | 2.21 | |||
S&P Municipal Bond California 5+ Year Investment Grade Index▼ (Style-Specific Index) | 2.16 | |||
Lipper California Municipal Debt Funds Index∎(Peer Group Index) | 1.33 |
Source(s):▼RIMES Technologies Corp.;∎Lipper Inc.
TheS&P Municipal Bond Index is a broad, market value-weighted index that seeks to measure the performance of the US municipal bond market.
TheS&P Municipal Bond California 5+ Year Investment Grade Index tracks the performance of investment-grade, California-issued US municipal bonds with maturities equal to or greater than five years.
TheLipper California 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 described 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.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us.Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
2 Invesco California Tax-Free Income Fund
Average Annual Total Returns
As of 2/28/19, including maximum applicable
sales charges
Class A Shares
Inception (7/28/97) | 4.05 | % | ||
10 Years | 4.53 | |||
5 Years | 2.80 | |||
1 Year | -1.69 | |||
Class C Shares* | ||||
Inception (7/28/97) | 4.03 | % | ||
10 Years | 4.46 | |||
5 Years | 3.17 | |||
1 Year | 1.15 | |||
Class Y Shares | ||||
Inception (7/28/97) | 4.52 | % | ||
10 Years | 5.24 | |||
5 Years | 3.93 | |||
1 Year | 2.90 | |||
Class R6 Shares | ||||
10 Years | 5.04 | % | ||
5 Years | 3.81 | |||
1 Year | 3.09 |
* | Effective January 26, 2019, Class C share performance includes the conversion to A shares after 10 years. |
Effective June 1, 2010, Class A, Class C and Class I shares of the predecessor fund, Morgan Stanley CaliforniaTax-Free Income Fund, advised by Morgan Stanley Investment Advisors Inc. were reorganized into Class A, Class C and Class Y shares, respectively, of Invesco CaliforniaTax-Free Income Fund. Returns shown above, prior to June 1, 2010, for Class A, Class C and Class Y shares are blended returns of the predecessor fund and Invesco CaliforniaTax-Free Income Fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares and includes the12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recentmonth-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
Average Annual Total Returns
As of 12/31/18, the most recent calendar quarter end, including maximum applicable sales charges
Class A Shares
Inception (7/28/97) | 4.03 | % | ||
10 Years | 5.04 | |||
5 Years | 3.34 | |||
1 Year | -4.25 | |||
Class C Shares | ||||
Inception (7/28/97) | 3.74 | % | ||
10 Years | 4.97 | |||
5 Years | 3.75 | |||
1 Year | -1.47 | |||
Class Y Shares | ||||
Inception (7/28/97) | 4.51 | % | ||
10 Years | 5.76 | |||
5 Years | 4.53 | |||
1 Year | 0.30 | |||
Class R6 Shares | ||||
10 Years | 5.55 | % | ||
5 Years | 4.38 | |||
1 Year | 0.47 |
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 Y and Class R6 shares was 1.27%, 1.75%, 1.03% and 0.96%, 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 4.25% 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 Y and Class R6 shares do not have afront-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 Invesco California Tax-Free Income Fund
Letters to Shareholders
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time; monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature
of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory andsub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper, Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website,invesco.com/us, offers a wide range of market insights and investment perspectives.
On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at
800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
4 Invesco California Tax-Free Income Fund
Schedule of Investments
February 28, 2019
(Unaudited)
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
Municipal Obligations-110.38%(a) | ||||||||||||||
California-107.16% | ||||||||||||||
ABAG Finance Authority ForNon-profit Corps. (Sharp Healthcare); Series 2014 A, RB | 5.00% | 08/01/2043 | $ | 500 | $ 545,740 | |||||||||
Alhambra (City of) (Atherton Baptist Homes); Series 2010 A, RB(b)(c) | 7.63% | 01/01/2020 | 1,575 | 1,653,750 | ||||||||||
Alhambra Elementary School District (Election of 1999); Series 1999 A, Unlimited Tax CAB GO Bonds (INS-AGM)(d)(e) | 0.00% | 09/01/2020 | 1,925 | 1,880,146 | ||||||||||
Anaheim (City of) Public Financing Authority (Electric System Distribution Facilities); Series 2011 A, RB (b)(c) | 5.38% | 04/01/2021 | 2,500 | 2,704,650 | ||||||||||
Bay Area Toll Authority (San Francisco Bay Area); | ||||||||||||||
Series 2009F-1, Toll Bridge RB(b)(c)(f) | 5.13% | 04/01/2019 | 1,500 | 1,504,275 | ||||||||||
Series 2009F-1, Toll Bridge RB(b)(c)(f) | 5.25% | 04/01/2019 | 4,685 | 4,698,821 | ||||||||||
Series 2009F-1, Toll Bridge RB(b)(c)(f) | 5.25% | 04/01/2019 | 5,205 | 5,220,355 | ||||||||||
Series 2017F-1, Toll Bridge RB(b)(c)(f) | 5.00% | 04/01/2056 | 3,465 | 3,867,079 | ||||||||||
Series 2017, Ref. Sub. Toll Bridge RB | 4.00% | 04/01/2037 | 1,720 | 1,803,282 | ||||||||||
Series 2017, Ref. Sub. Toll Bridge RB | 4.00% | 04/01/2049 | 630 | 642,411 | ||||||||||
Bay Area Water Supply & Conservation Agency; Series 2013 A, RB | 5.00% | 10/01/2034 | 1,950 | 2,168,361 | ||||||||||
Beverly Hills Unified School District (Election of 2008); | ||||||||||||||
Series 2009, Unlimited Tax CAB GO Bonds(e) | 0.00% | 08/01/2026 | 1,465 | 1,242,584 | ||||||||||
Series 2009, Unlimited Tax CAB GO Bonds(e) | 0.00% | 08/01/2032 | 3,045 | 2,036,131 | ||||||||||
California (County of) Tobacco Securitization Agency (Alameda County Tobacco Asset Securitization Corp.); Series 2006C, Tobacco Settlement Sub. CAB RB(e) | 0.00% | 06/01/2055 | 12,000 | 557,640 | ||||||||||
California (County of) Tobacco Securitization Agency (Gold Country Settlement Funding Corp.); | ||||||||||||||
Series 2006, Tobacco Settlement Asset-Backed CAB RB(e) | 0.00% | 06/01/2033 | 1,455 | 646,937 | ||||||||||
California (County of) Tobacco Securitization Agency (Los Angeles County Securitization Corp.); | ||||||||||||||
Series 2006, Tobacco Settlement Asset-Backed RB(g) | 5.70% | 06/01/2046 | 1,030 | 1,030,309 | ||||||||||
California (State of); | ||||||||||||||
Series 2004A-3, VRD GO Bonds (LOC - State Street B&T Co.)(h)(i) | 1.30% | 05/01/2034 | 600 | 600,000 | ||||||||||
Series 2004 A9, Ref. VRD Unlimited Tax GO Bonds(LOC-State Street B&T Co.)(h)(i) | 1.50% | 03/12/2019 | 505 | 505,000 | ||||||||||
Series 2009, Various Purpose Unlimited Tax GO Bonds(b)(c) | 6.00% | 04/01/2019 | 440 | 441,540 | ||||||||||
Series 2009, Various Purpose Unlimited Tax GO Bonds | 5.75% | 04/01/2031 | 5,000 | 5,015,350 | ||||||||||
Series 2009, Various Purpose Unlimited Tax GO Bonds | 6.00% | 11/01/2035 | 1,750 | 1,800,295 | ||||||||||
Series 2009, Various Purpose Unlimited Tax GO Bonds | 6.00% | 04/01/2038 | 810 | 812,633 | ||||||||||
Series 2010, Unlimited Tax GO Bonds | 5.25% | 11/01/2040 | 3,000 | 3,150,660 | ||||||||||
Series 2011, Various Purpose Unlimited Tax GO Bonds | 5.00% | 09/01/2032 | 2,450 | 2,632,843 | ||||||||||
Series 2011, Various Purpose Unlimited Tax GO Bonds | 5.00% | 10/01/2041 | 2,500 | 2,684,100 | ||||||||||
Series 2012, Ref. Unlimited Tax GO Bonds | 5.25% | 02/01/2030 | 1,000 | 1,094,870 | ||||||||||
Series 2015, Unlimited Tax GO Bonds | 5.00% | 08/01/2045 | 1,000 | 1,117,500 | ||||||||||
Series 2016, Various Purpose Unlimited Tax GO Bonds(f) | 5.00% | 09/01/2045 | 3,400 | 3,845,944 | ||||||||||
Series 2017, Ref. Unlimited Tax GO Bonds | 5.00% | 08/01/2035 | 1,370 | 1,584,309 | ||||||||||
California (State of) (Green Bonds); Series 2014, Various Purpose Unlimited Tax GO Bonds | 5.00% | 10/01/2037 | 1,745 | 1,967,731 | ||||||||||
California (State of) Community College Financing Authority (Orange Coast PropertiesLLC- Orange Coast College); Series 2018, RB | 5.25% | 05/01/2048 | 665 | 728,481 | ||||||||||
California (State of) Educational Facilities Authority (Loma Linda University); Series 2017 A, Ref. RB | 5.00% | 04/01/2042 | 1,715 | 1,922,464 | ||||||||||
California (State of) Educational Facilities Authority (Pitzer College); Series 2009, | 6.00% | 04/01/2020 | 2,000 | 2,097,360 | ||||||||||
California (State of) Educational Facilities Authority (Stanford University); Series 2010, RB(f) | 5.25% | 04/01/2040 | 4,520 | 5,965,044 | ||||||||||
California (State of) Health Facilities Financing Authority (Adventist Health System West); Series 2009 A, RB(b)(c) | 5.75% | 09/01/2019 | 500 | 510,495 | ||||||||||
California (State of) Health Facilities Financing Authority (Catholic Healthcare West); | ||||||||||||||
Series 2009 A, RB(b)(c) | 6.00% | 07/01/2019 | 500 | 507,370 | ||||||||||
Series 2011 A, RB | 5.25% | 03/01/2041 | 2,500 | 2,637,575 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 Invesco California Tax-Free Income Fund
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
California-(continued) | ||||||||||||||
California (State of) Health Facilities Financing Authority (Cedars Sinai Medical Center); | ||||||||||||||
Series 2015, Ref. RB | 5.00% | 11/15/2031 | $ | 1,300 | $ 1,522,898 | |||||||||
Series 2015, Ref. RB | 5.00% | 11/15/2032 | 1,250 | 1,459,887 | ||||||||||
Series 2015, Ref. RB | 5.00% | 11/15/2033 | 1,000 | 1,157,750 | ||||||||||
California (State of) Health Facilities Financing Authority (Cedars-Sinai Medical Center); Series 2009, RB(b)(c) | 5.00% | 08/15/2019 | 1,050 | 1,066,548 | ||||||||||
California (State of) Health Facilities Financing Authority (Children’s Hospital Los Angeles); | ||||||||||||||
Series 2010, RB(b)(c) | 5.25% | 07/01/2020 | 2,950 | 3,095,730 | ||||||||||
Series 2017 A, Ref. RB | 5.00% | 08/15/2047 | 1,715 | 1,883,807 | ||||||||||
California (State of) Health Facilities Financing Authority (Lucile Salter Packard Children’s Hospital at Stanford); Series 2017, RB | 4.00% | 11/15/2047 | 560 | 568,658 | ||||||||||
California (State of) Health Facilities Financing Authority (Scripps Health); Series | 5.00% | 11/15/2036 | 4,000 | 4,096,360 | ||||||||||
California (State of) Health Facilities Financing Authority (St. Joseph Health System); Series 2013 A, RB | 5.00% | 07/01/2037 | 1,000 | 1,102,110 | ||||||||||
California (State of) Health Facilities Financing Authority (Stanford Hospital); Series | 5.25% | 11/15/2021 | 2,000 | 2,201,960 | ||||||||||
California (State of) Health Facilities Financing Authority (Sutter Health); | ||||||||||||||
Series 2011 B, RB(b)(c) | 5.50% | 08/15/2020 | 1,000 | 1,058,230 | ||||||||||
Series 2018 A, RB | 5.00% | 11/15/2048 | 3,000 | 3,363,330 | ||||||||||
California (State of) Municipal Finance Authority (American Heritage Education Foundation); | ||||||||||||||
Series 2016A, Ref. RB | 5.00% | 06/01/2036 | 1,000 | 1,087,830 | ||||||||||
Series 2016A, Ref. RB | 5.00% | 06/01/2046 | 1,140 | 1,215,958 | ||||||||||
California (State of) Municipal Finance Authority (Bella Mente Montessori Academy); | ||||||||||||||
Series 2018 A, Charter School Lease RB(j) | 5.00% | 06/01/2038 | 280 | 293,059 | ||||||||||
Series 2018 A, Charter School Lease RB(j) | 5.00% | 06/01/2048 | 380 | 394,793 | ||||||||||
California (State of) Municipal Finance Authority (California Baptist University); Series 2016A, RB(j) | 5.00% | 11/01/2046 | 1,000 | 1,070,800 | ||||||||||
California (State of) Municipal Finance Authority (Caritas Affordable Housing, Inc.); | ||||||||||||||
Series 2014 A, Sr. Mobile Home Park RB | 5.25% | 08/15/2039 | 1,200 | 1,302,060 | ||||||||||
Series 2014 A, Sr. Mobile Home Park RB | 5.25% | 08/15/2049 | 1,420 | 1,532,748 | ||||||||||
California (State of) Municipal Finance Authority (Caritas Projects); | ||||||||||||||
Series 2012 A, Sr. Mobile Home Park RB | 5.50% | 08/15/2047 | 1,500 | 1,593,120 | ||||||||||
Series 2017 A, Ref. Sr. Mobile Home Park RB | 4.00% | 08/15/2037 | 1,055 | 1,073,157 | ||||||||||
California (State of) Municipal Finance Authority(CHF-Davis I, LLC - West Village Student Housing Project); Series 2018, Student Housing RB | 5.00% | 05/15/2043 | 1,650 | 1,810,413 | ||||||||||
California (State of) Municipal Finance Authority (Community Medical Centers); Series 2017 A, Ref. RB | 5.00% | 02/01/2047 | 1,380 | 1,499,094 | ||||||||||
California (State of) Municipal Finance Authority (Eisenhower Medical Center); | ||||||||||||||
Series 2010 A, RB(b)(c) | 5.50% | 07/01/2020 | 1,000 | 1,051,990 | ||||||||||
Series 2010 A, RB(b)(c) | 5.75% | 07/01/2020 | 1,500 | 1,582,875 | ||||||||||
Series 2017 A, Ref. RB | 5.00% | 07/01/2047 | 1,000 | 1,091,280 | ||||||||||
California (State of) Municipal Finance Authority (Emerson College); Series 2011, | 5.75% | 01/01/2022 | 1,315 | 1,470,538 | ||||||||||
California (State of) Municipal Finance Authority (Linxs APM); Series 2018 A, Sr. Lien RB(k) | 5.00% | 12/31/2038 | 2,005 | 2,249,810 | ||||||||||
California (State of) Municipal Finance Authority (Palmdale Aerospace Academy (The)); Series 2018 A, Charter School RB(j) | 5.00% | 07/01/2049 | 600 | 623,532 | ||||||||||
California (State of) Municipal Finance Authority (Touro College and University System); Series 2014 A, RB | 5.25% | 01/01/2034 | 620 | 669,141 | ||||||||||
California (State of) Municipal Finance Authority (University of La Verne); | ||||||||||||||
Series 2010 A, RB(b)(c) | 6.12% | 06/01/2020 | 1,000 | 1,057,680 | ||||||||||
Series 2017 A, Ref. RB | 5.00% | 06/01/2043 | 600 | 672,930 | ||||||||||
California (State of) Pollution Control Finance Authority; Series 2012, Water Furnishing RB(j)(k) | 5.00% | 07/01/2037 | 3,000 | 3,146,670 | ||||||||||
California (State of) Pollution Control Financing Authority (San Diego County Water Authority); Ref. RB(j) | 5.00% | 07/01/2039 | 2,000 | 2,242,200 | ||||||||||
California (State of) Pollution Control Financing Authority (Waste Management Inc.); Series 2015B-1, Ref. Solid Waste Disposal RB(k) | 3.00% | 11/01/2025 | 1,500 | 1,529,370 | ||||||||||
California (State of) Public Works Board (Various Capital); Series 2011 A, Lease RB | 5.13% | 10/01/2031 | 2,000 | 2,159,800 | ||||||||||
California (State of) Public Works Board (Various Correctional Facilities); Series 2014 A, Lease RB | 5.00% | 09/01/2039 | 3,000 | 3,358,950 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco California Tax-Free Income Fund
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
California-(continued) | ||||||||||||||
California (State of) School Finance Authority (Alliance for College-Ready Public Schools); | ||||||||||||||
Series 2013 A, School Facility RB | 6.30% | 07/01/2043 | $ | 840 | $ 937,734 | |||||||||
Series 2015, School Facility RB(j) | 5.00% | 07/01/2045 | 1,265 | 1,348,313 | ||||||||||
California (State of) School Finance Authority (Aspire Public Schools); | ||||||||||||||
Series 2015 A, Ref. Charter School RB(j) | 5.00% | 08/01/2045 | 1,000 | 1,063,650 | ||||||||||
Series 2016, Ref. Charter School RB(j) | 5.00% | 08/01/2046 | 750 | 797,978 | ||||||||||
California (State of) School Finance Authority (Green Dot Public Schools); | ||||||||||||||
Series 2015 A, School Facility RB(j) | 5.00% | 08/01/2045 | 1,500 | 1,600,605 | ||||||||||
Series 2018 A, School Facility RB(j) | 5.00% | 08/01/2038 | 1,000 | 1,106,650 | ||||||||||
California (State of) School Finance Authority (KIPP LA); | ||||||||||||||
Series 2015 A, Facilities RB(j) | 5.00% | 07/01/2045 | 500 | 534,090 | ||||||||||
Series 2017 A, RB(j) | 5.00% | 07/01/2037 | 590 | 650,994 | ||||||||||
Series 2017 A, RB(j) | �� | 5.00% | 07/01/2047 | 370 | 401,291 | |||||||||
California (State of) School Finance Authority (New Designs Charter School); Series 2012 A, Educational Facilities RB | 5.25% | 06/01/2032 | 1,550 | 1,594,485 | ||||||||||
California (State of) Statewide Communities Development Authority (Adventist Health System); | ||||||||||||||
Series 2015, Ref. RB | 5.00% | 03/01/2033 | 775 | 883,686 | ||||||||||
Series 2015, Ref. RB | 5.00% | 03/01/2045 | 2,315 | 2,572,359 | ||||||||||
California (State of) Statewide Communities Development Authority (Alliance for College-Ready Public Schools); Series 2012, School Facility RB | 6.10% | 07/01/2032 | 820 | 872,308 | ||||||||||
California (State of) Statewide Communities Development Authority (American Baptist Homes of the West); Series 2010, RB | 6.25% | 10/01/2039 | 2,000 | 2,046,800 | ||||||||||
California (State of) Statewide Communities Development Authority (California Baptist University); | ||||||||||||||
Series 2014 A, RB | 5.13% | 11/01/2023 | 715 | 757,514 | ||||||||||
Series 2017 A, Ref. RB(j) | 5.00% | 11/01/2041 | 875 | 949,121 | ||||||||||
California (State of) Statewide Communities Development Authority (Cottage Health System Obligated Group); Series 2010, RB | 5.25% | 11/01/2030 | 1,675 | 1,768,699 | ||||||||||
California (State of) Statewide Communities Development Authority (Front Porch Communities & Services); Series 2017, Ref. RB | 5.00% | 04/01/2047 | 2,015 | 2,234,736 | ||||||||||
California (State of) Statewide Communities Development Authority (Henry Mayo Newhall Memorial Hospital); Series 2014 A, RB (INS-AGM)(d) | 5.25% | 10/01/2043 | 600 | 659,490 | ||||||||||
California (State of) Statewide Communities Development Authority (Huntington Memorial Hospital); Series 2014 B, Ref. RB | 5.00% | 07/01/2044 | 750 | 815,925 | ||||||||||
California (State of) Statewide Communities Development Authority (John Muir Health); Series 2016A, Ref. RB | 5.00% | 08/15/2051 | 3,000 | 3,320,970 | ||||||||||
California (State of) Statewide Communities Development Authority (Lancer Educational Student Housing); Series 2016, Ref. RB(j) | 5.00% | 06/01/2046 | 1,000 | 1,056,480 | ||||||||||
California (State of) Statewide Communities Development Authority (Loma Linda University Medical Center); | ||||||||||||||
Series 2014, RB | 5.50% | 12/01/2054 | 1,500 | 1,613,820 | ||||||||||
Series 2016A, RB(j) | 5.25% | 12/01/2056 | 830 | 882,888 | ||||||||||
California (State of) Statewide Communities Development Authority (Methodist Hospital of Sothern California); Series 2018; Hospital RB | 5.00% | 01/01/2048 | 495 | 538,362 | ||||||||||
California (State of) Statewide Communities Development Authority (Methodist Hospital); Series 2009, RB(b)(c) | 6.75% | 08/01/2019 | 445 | 454,541 | ||||||||||
California (State of) Statewide Communities Development Authority (NCCD-Hooper Street LLC-California College of the Arts); Series 2019, College Housing RB(j) | 5.25% | 07/01/2039 | 1,640 | 1,751,766 | ||||||||||
California (State of) Statewide Communities Development Authority (Southern California Presbyterian Homes); | ||||||||||||||
Series 2009, Senior Living RB(j) | 6.25% | 11/15/2019 | 455 | 466,762 | ||||||||||
Series 2009, Senior Living RB(j) | 7.25% | 11/15/2041 | 500 | 516,215 | ||||||||||
California (State of) Statewide Communities Development Authority (Terraces at San Joaquin Garden); Series 2012, RB | 5.62% | 10/01/2032 | 1,000 | 1,054,960 | ||||||||||
California (State of) Statewide Communities Development Authority (University of California - Irvine East Campus Apartments); Series 2012, Ref. Student Housing RB | 5.38% | 05/15/2038 | 2,000 | 2,120,920 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco California Tax-Free Income Fund
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
California-(continued) | ||||||||||||||
California (State of) Statewide Finance Authority (Pooled Tobacco Securitization); Series 2006A, Tobacco Settlement CAB Turbo RB(e) | 0.00% | 06/01/2046 | $ | 8,000 | $ 1,371,360 | |||||||||
California Infrastructure & Economic Development Bank (Academy Motion Picture Arts and Sciences Obligated Group); | ||||||||||||||
Series 2015, Ref. RB | 5.00% | 11/01/2035 | 1,000 | 1,121,820 | ||||||||||
Series 2015, Ref. RB | 5.00% | 11/01/2041 | 4,265 | 4,728,733 | ||||||||||
California Infrastructure & Economic Development Bank (Broad Museum); Series | 5.00% | 06/01/2021 | 2,000 | 2,154,340 | ||||||||||
California Public Finance Authority (Henry Mayo Newhall Hospital); | ||||||||||||||
Series 2017, Ref. RB | 5.00% | 10/15/2037 | 1,000 | 1,083,580 | ||||||||||
Series 2017, Ref. RB | 5.00% | 10/15/2047 | 1,000 | 1,071,280 | ||||||||||
California State University; | ||||||||||||||
Series 2009 A, Systemwide RB(b)(c) | 5.25% | 05/01/2019 | 1,000 | 1,006,120 | ||||||||||
Series 2012 A, Systemwide RB(f) | 5.00% | 11/01/2037 | 6,750 | 7,492,163 | ||||||||||
Cerritos Community College District (Election of 2012); Series 2018 B, Unlimited Tax GO Bonds | 4.00% | 08/01/2043 | 1,870 | 1,945,099 | ||||||||||
Clovis Unified School District (Election of 2004); Series 2004 A, Unlimited Tax CAB GO Bonds (INS -NATL)(d)(e) | 0.00% | 08/01/2029 | 735 | 543,349 | ||||||||||
East Bay Municipal Utility District; Series 2010 A, Ref. Sub. Water System RB(b)(c) | 5.00% | 06/01/2020 | 2,000 | 2,089,040 | ||||||||||
Eden (Township of) Healthcare District; Series 2010, COP(b)(c) | 6.12% | 06/01/2020 | 1,000 | 1,057,040 | ||||||||||
El Monte Union High School District (Election of 2008); Series 2009 A, Unlimited Tax GO Bonds(b)(c) | 5.50% | 06/01/2019 | 1,000 | 1,009,900 | ||||||||||
El Segundo Unified School District (Election of 2008); Series 2009 A, Unlimited Tax CAB GO Bonds(e) | 0.00% | 08/01/2033 | 4,430 | 2,746,910 | ||||||||||
Emeryville (City of) Public Financing Authority (Alameda County); | ||||||||||||||
Series 2014 A, Ref. Tax Allocation RB (INS-AGM)(d) | 5.00% | 09/01/2032 | 445 | 512,235 | ||||||||||
Series 2014 A, Ref. Tax Allocation RB (INS-AGM)(d) | 5.00% | 09/01/2033 | 385 | 441,876 | ||||||||||
Series 2014 A, Ref. Tax Allocation RB (INS-AGM)(d) | 5.00% | 09/01/2034 | 500 | 569,140 | ||||||||||
Escondido Union School District (Election of 2014); Series 2018 B, Unlimited Tax GO Bonds | 4.00% | 08/01/2047 | 1,690 | 1,737,945 | ||||||||||
Fairfield (City of) Community Facilities District No. 3 (North Cordelia General Improvements); Series 2008, Special Tax RB(b) | 6.00% | 03/01/2019 | 1,800 | 1,800,000 | ||||||||||
Foothill-Eastern Transportation Corridor Agency; Series 2015, Ref. CAB Toll Road RB (INS-AGM)(d)(e) | 0.00% | 01/15/2035 | 2,745 | 1,554,192 | ||||||||||
Fremont Community Facilities District No. 1 (Pacific Commons); | ||||||||||||||
Series 2015, Ref. Special Tax RB | 5.00% | 09/01/2035 | 815 | 883,965 | ||||||||||
Series 2015, Ref. Special Tax RB | 5.00% | 09/01/2045 | 905 | 970,721 | ||||||||||
Fullerton (City of) Community Facilities District No. 1 (Amerige Heights); | ||||||||||||||
Series 2012, Ref. Special Tax RB | 5.00% | 09/01/2026 | 1,960 | 2,144,005 | ||||||||||
Series 2012, Ref. Special Tax RB | 5.00% | 09/01/2032 | 1,090 | 1,189,648 | ||||||||||
Gilroy Unified School District (Election of 2008); | ||||||||||||||
Series 2009 A, Unlimited Tax CAB GO Bonds(b)(e) | 0.00% | 08/01/2029 | 615 | 482,246 | ||||||||||
Series 2009 A, Unlimited Tax CAB GO Bonds (INS-AGC)(d)(e) | 0.00% | 08/01/2029 | 4,735 | 3,514,743 | ||||||||||
Series 2009 A, Unlimited Tax CAB GO Bonds(b)(e) | 0.00% | 08/01/2031 | 2,235 | 1,622,074 | ||||||||||
Series 2009 A, Unlimited Tax CAB GO Bonds (INS-AGC)(d)(e) | 0.00% | 08/01/2031 | 1,415 | 956,710 | ||||||||||
Glendora (City of) Public Finance Authority; Series 2003 A, Project No. One Tax Allocation RB (INS -NATL)(d) | 5.00% | 09/01/2024 | 2,425 | 2,431,717 | ||||||||||
Golden State Tobacco Securitization Corp.; | ||||||||||||||
Series 2013 A, Enhanced Tobacco Settlement Asset-Backed RB | 5.00% | 06/01/2030 | 2,000 | 2,220,380 | ||||||||||
Series 2015 A, Ref. Tobacco Settlement Asset-Backed RB | 5.00% | 06/01/2040 | 695 | 768,726 | ||||||||||
Series 2015 A, Ref. Tobacco Settlement Asset-Backed RB | 5.00% | 06/01/2045 | 1,165 | 1,280,253 | ||||||||||
Series 2017A-1, Ref. Tobacco Settlement RB | 5.00% | 06/01/2029 | 1,000 | 1,137,210 | ||||||||||
Series 2018A-1, Ref. Tobacco Settlement Asset-Backed RB | 5.00% | 06/01/2047 | 2,240 | 2,162,317 | ||||||||||
Series 2018A-2, Ref. Tobacco Settlement Asset-Backed RB | 5.00% | 06/01/2047 | 3,000 | 2,895,960 | ||||||||||
Hollister Joint Powers Financing Authority; Series 2016, Ref. Wastewater RB (INS-AGM)(d) | 5.00% | 06/01/2036 | 1,270 | 1,462,761 | ||||||||||
Inglewood (City of) Redevelopment Agency (Merged Redevelopment); Series 1998 A, Ref. Tax Allocation RB (INS -AMBAC)(d) | 5.25% | 05/01/2023 | 830 | 875,193 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco California Tax-Free Income Fund
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
California-(continued) | ||||||||||||||
Inland Empire Tobacco Securitization Authority; | ||||||||||||||
Series 2007 A, Tobacco Settlement RB | 4.63% | 06/01/2021 | $ | 1,325 | $ 1,324,589 | |||||||||
Series 2007C-1, Asset-Backed Tobacco Settlement CAB Turbo RB(e) | 0.00% | 06/01/2036 | 8,000 | 2,422,560 | ||||||||||
Series 2007C-2, Asset-Backed Tobacco Settlement CAB Turbo RB(e) | 0.00% | 06/01/2047 | 14,000 | 1,915,760 | ||||||||||
Irvine (City of) Community Facilities DistrictNo. 2013-3 (Great Park Improvement Area No. 1); | ||||||||||||||
Series 2014, Special Tax RB | 5.00% | 09/01/2044 | 445 | 473,057 | ||||||||||
Series 2014, Special Tax RB | 5.00% | 09/01/2049 | 445 | 471,923 | ||||||||||
Irvine Ranch Water District; Series 2016, Special Assessment RB(f) | 5.25% | 02/01/2046 | 4,305 | 4,991,691 | ||||||||||
Irvine Unified School District; Series 2015, Ref. Special Tax RB (INS-BAM)(d) | 5.00% | 09/01/2038 | 3,500 | 3,916,220 | ||||||||||
Irvine Unified School District (Community Facilities DistrictNo. 06-1- Portola Springs); Series 2010, Special Tax RB | 6.70% | 09/01/2035 | 515 | 540,245 | ||||||||||
Irvine Unified School District (Community Facilities DistrictNo. 09-1); Series 2017 B, Special Tax RB | 5.00% | 09/01/2047 | 500 | 545,095 | ||||||||||
Irvine Unified School DistrictNo. 09-1; Series 2018 A, Ref. Special Tax RB | 5.00% | 09/01/2045 | 1,000 | 1,091,710 | ||||||||||
Long Beach (City of); | ||||||||||||||
Series 2010 A, Sr. Airport RB | 5.00% | 06/01/2040 | 2,500 | 2,597,300 | ||||||||||
Series 2015, Marina System RB | 5.00% | 05/15/2045 | 2,370 | 2,560,903 | ||||||||||
Long Beach (City of) Bond Finance Authority (Aquarium of the Pacific); Series 2012, Ref. RB | 5.00% | 11/01/2029 | 2,000 | 2,155,620 | ||||||||||
Long Beach (City of) Bond Finance Authority (Natural Gas Purchase); Series 2007 A, RB | 5.50% | 11/15/2032 | 2,665 | 3,326,320 | ||||||||||
Los Alamitos Unified School District; Series 2013, Unlimited Tax Conv. CAB GO | 6.01% | 08/01/2040 | 1,660 | 1,463,871 | ||||||||||
Los Angeles (City of) Community Facilities District No. 4 (Playa Vista - Phase 1); Series 2014, Ref. Special Tax RB | 5.00% | 09/01/2031 | 600 | 679,992 | ||||||||||
Los Angeles (City of) Department of Airports (Los Angeles International Airport); | ||||||||||||||
Series 2010 A, Sr. RB | 5.00% | 05/15/2035 | 2,500 | 2,599,025 | ||||||||||
Series 2010 B, Sub. RB | 5.00% | 05/15/2040 | 1,000 | 1,038,520 | ||||||||||
Series 2013, RB(k) | 5.00% | 05/15/2043 | 3,000 | 3,277,650 | ||||||||||
Los Angeles (City of) Department of Water & Power; | ||||||||||||||
Series 2011 A, Power System RB(f) | 5.00% | 07/01/2022 | 1,800 | 1,946,106 | ||||||||||
Series 2011 A, Waterworks RB | 5.25% | 07/01/2039 | 1,500 | 1,589,355 | ||||||||||
Los Angeles (City of) Harbor Department; Series 2014 A, Ref. RB(k) | 5.00% | 08/01/2036 | 1,000 | 1,124,680 | ||||||||||
Los Angeles County Schools Regionalized Business Services Corp. (Los Angeles County Schools Pooled Financing Program); Series 1999 A, CAB COP (INS -AMBAC)(d)(e) | 0.00% | 08/01/2024 | 1,265 | 1,107,773 | ||||||||||
Los Angeles Unified School District (Election of 2004); Series 2009 I, Unlimited Tax GO Bonds (INS -AGC)(d) | 5.00% | 01/01/2034 | 3,000 | 3,032,160 | ||||||||||
Marin (County of) Water District Financing Authority; Series 2017, Sub. RB(f) | 5.00% | 07/01/2047 | 3,120 | 3,563,102 | ||||||||||
Menifee Union School District (Election of 2008); Series 2009 C, Unlimited Tax CAB GO Bonds (INS -AGC)(d)(e) | 0.00% | 08/01/2035 | 940 | 526,889 | ||||||||||
Montclair (City of) Redevelopment Agency (Montclair Redevelopment Project No. V); Series 2001, Ref. Tax Allocation RB (INS -NATL)(d) | 5.00% | 10/01/2020 | 475 | 475,190 | ||||||||||
Montebello Unified School District (Election of 2004); Series 2009A-1, Unlimited Tax GO Bonds(b)(c) | 5.25% | 08/01/2019 | 1,000 | 1,015,600 | ||||||||||
Moorpark Unified School District (Election of 2008); Series 2009 A, Unlimited Tax CAB GO Bonds (INS -AGC)(d)(e) | 0.00% | 08/01/2031 | 840 | 563,791 | ||||||||||
Mt. San Antonio (City of) Community College District (Election 2008); Series 2013 A, Unlimited Tax Conv.CAB GO Bonds(g) | 6.25% | 08/01/2043 | 2,035 | 1,749,428 | ||||||||||
National City (City of) Community Development Commission (National City Redevelopment); Series 2011, Tax Allocation RB(b)(c) | 7.00% | 08/01/2021 | 1,500 | 1,695,765 | ||||||||||
Norco (City of) Financing Authority; Series 2009, Ref. Enterprise RB (INS-AGM)(d) | 5.62% | 10/01/2034 | 1,000 | 1,021,590 | ||||||||||
Northern California Transmission Agency (California-Oregon Transmission); Series 2016, Ref. RB | 5.00% | 05/01/2038 | 1,250 | 1,418,975 | ||||||||||
Oakland Unified School District (County of Alameda); Series 2015 A, Unlimited Tax GO Bonds | 5.00% | 08/01/2040 | 1,070 | 1,226,627 | ||||||||||
Orange (County of) Community Facilities DistrictNo. 2015-1 (Esencia Village); | ||||||||||||||
Series 2015 A, Special Tax RB | 5.00% | 08/15/2035 | 125 | 135,211 | ||||||||||
Series 2015 A, Special Tax RB | 5.25% | 08/15/2045 | 1,855 | 2,013,009 | ||||||||||
Orange (County of) Community Facilities DistrictNo. 2016-1 (Esencia Village); Series 2016A, Special Tax RB | 5.00% | 08/15/2046 | 2,000 | 2,140,160 | ||||||||||
Orange (County of) Water District; Series 2003 A, VRD COP(LOC-Citibank N.A.)(h)(i) | 1.58% | 03/12/2019 | 2,500 | 2,500,000 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco California Tax-Free Income Fund
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
California-(continued) | ||||||||||||||
Oroville (City of) (Oroville Hospital); Series 2019, RB | 5.25% | 04/01/2039 | $ | 1,325 | $ 1,470,763 | |||||||||
Palomar Community College District; Series 2010, Unlimited Tax Conv. CAB GO Bonds (g) | 6.37% | 08/01/2045 | 3,330 | 2,704,326 | ||||||||||
Palomar Pomerado Health; Series 2009, COP(b)(c) | 6.75% | 11/01/2019 | 2,000 | 2,067,940 | ||||||||||
Port Hueneme (City of) (Capital Improvement Program); Series 1992, Ref. COP (INS -NATL)(d) | 6.00% | 04/01/2019 | 230 | 230,651 | ||||||||||
Rancho Cordova (City of) Community Facilities DistrictNo. 2003-1 (Sunridge Anatolia); Series 2012, Ref. Special Tax RB | 5.00% | 09/01/2027 | 1,000 | 1,076,490 | ||||||||||
Redding (City of) Redevelopment Agency (Canby-Hilltop-Cypress Redevelopment); Series 2003 A, Tax Allocation RB (INS -NATL)(d) | 5.00% | 09/01/2023 | 1,400 | 1,403,710 | ||||||||||
Regents of the University of California; | ||||||||||||||
Series 2009 O, General RB(b)(c)(f) | 5.75% | 05/15/2019 | 705 | 711,070 | ||||||||||
Series 2009 O, General RB(b)(c)(f) | 5.75% | 05/15/2019 | 1,050 | 1,059,041 | ||||||||||
Series 2016 L, Ref. Medical Center Pooled RB(f) | 5.00% | 05/15/2041 | 3,420 | 3,832,418 | ||||||||||
Series 2018 O, Limited RB | 5.00% | 05/15/2048 | 3,000 | 3,413,100 | ||||||||||
Riverside (City of); | ||||||||||||||
Series 2008 B, Water RB (INS-AGM)(d) | 5.00% | 10/01/2033 | 1,000 | 1,002,760 | ||||||||||
Series 2008 D, Electric RB (INS-AGM)(d) | 5.00% | 10/01/2038 | 1,590 | 1,594,325 | ||||||||||
Riverside (County of) Community Facilities DistrictNo. 07-2 (Clinton Keith); Series 2015, Special Tax Bonds | 5.00% | 09/01/2044 | 1,000 | 1,072,620 | ||||||||||
Riverside (County of) Public Financing Authority (Desert Communities and Interstate 215 Corridor); | ||||||||||||||
Series 2017 A, Ref. Tax Allocation RB (INS-BAM)(d) | 5.00% | 10/01/2034 | 1,000 | 1,157,400 | ||||||||||
Series 2017 A, Ref. Tax Allocation RB (INS-BAM)(d) | 4.00% | 10/01/2040 | 500 | 511,425 | ||||||||||
Riverside (County of) Transportation Commission; Series 2010 A, Limited Sales Tax | 5.00% | 06/01/2020 | 1,500 | 1,565,835 | ||||||||||
Romoland School District Community FacilitiesNo. 2004-1; Series 2015, Ref. Special Tax Bonds | 5.00% | 09/01/2038 | 1,000 | 1,076,200 | ||||||||||
Sacramento (County of); | ||||||||||||||
Series 2010, Sr. Airport System RB | 5.00% | 07/01/2040 | 2,200 | 2,286,856 | ||||||||||
Series 2018 C, Ref. Sr. Airport System RB(k) | 5.00% | 07/01/2039 | 1,685 | 1,919,266 | ||||||||||
San Buenaventura (City of) (Community Memorial Health System); Series 2011, RB | 7.50% | 12/01/2041 | 2,000 | 2,180,860 | ||||||||||
San Diego (City of) Public Facilities Financing Authority; | ||||||||||||||
Series 2016 A, Ref. Sr. Sewer RB | 5.00% | 05/15/2039 | 1,565 | 1,794,226 | ||||||||||
Series 2016 B, Ref. Sub. Water RB | 5.00% | 08/01/2036 | 1,500 | 1,732,380 | ||||||||||
Subseries 2012 A, Ref. Water RB | 5.00% | 08/01/2032 | 2,215 | 2,449,768 | ||||||||||
San Diego (City of) Regional Building Authority (County Operations Center); Series 2016 A, Ref. RB | 5.00% | 10/15/2034 | 1,500 | 1,754,745 | ||||||||||
San Diego (County of) Regional Airport Authority; Series 2017 B, Sub. Airport RB(k) | 5.00% | 07/01/2037 | 1,000 | 1,131,850 | ||||||||||
San Diego (County of) Regional Transportation Commission; Series 2014 A, Sales & Use Tax RB(f) | 5.00% | 04/01/2048 | 2,980 | 3,359,205 | ||||||||||
San Diego Community College District (Election of 2002); Series 2009, Unlimited Tax GO Bonds(b)(c)(f) | 5.25% | 08/01/2019 | 1,500 | 1,523,715 | ||||||||||
San Diego Community College District (Election of 2006); Series 2011, Unlimited Tax GO Bonds(b)(c) | 5.00% | 08/01/2021 | 2,500 | 2,714,225 | ||||||||||
San Diego Unified School District; Series 2012R-2, Ref. Unlimited Tax Conv. CAB GO Bonds(g) | 6.62% | 07/01/2041 | 1,250 | 1,039,112 | ||||||||||
San Francisco (City & County of) Airport Commission (San Francisco International Airport); | ||||||||||||||
Series 2009 E, Second Series RB(b)(c) | 6.00% | 05/01/2019 | 80 | 80,584 | ||||||||||
Series 2009 E, Second Series RB | 6.00% | 05/01/2039 | 920 | 926,716 | ||||||||||
Series 2011 C, Ref. Second Series RB(k) | 5.00% | 05/01/2023 | 5,000 | 5,323,350 | ||||||||||
Series 2011 G, Ref. Second Series Government Loan Program RB(b)(c) | 5.25% | 05/03/2021 | 1,450 | 1,566,290 | ||||||||||
Series 2011 G, Ref. Second Series Government Loan Program RB | 5.25% | 05/01/2028 | 550 | 592,466 | ||||||||||
Series 2018 D, Second Series RB(f)(k) | 5.25% | 05/01/2048 | 4,500 | 5,156,190 | ||||||||||
San Francisco (City & County of) Public Utilities Commission (Water System Improvement Program); Subseries 2011 A, Water RB | 5.00% | 11/01/2036 | 4,000 | 4,360,160 | ||||||||||
San Francisco (City & County of) Redevelopment Financing Authority (Mission Bay North | ||||||||||||||
Redevelopment); Series 2011 C, Tax Allocation RB(b)(c) | 6.75% | 02/01/2021 | 1,000 | 1,100,180 | ||||||||||
San Francisco (City & County of) Redevelopment Financing Authority (Mission Bay South Redevelopment); Series 2011 D, Tax Allocation RB(b)(c) | 7.00% | 02/01/2021 | 500 | 552,035 | ||||||||||
San Francisco (City & County of) Successor Agency to the Redevelopment Agency (Mission Bay South Redevelopment); Series 2014 A, Tax Allocation RB | 5.00% | 08/01/2043 | 1,060 | 1,178,561 | ||||||||||
San Francisco (City & County of) Successor Agency to the Redevelopment Agency Community Facilities District No. 6(Mission Bay South Public Improvement); Series | 5.00% | 08/01/2033 | 500 | 538,040 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco California Tax-Free Income Fund
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
California-(continued) | ||||||||||||||
San Francisco (City of) Bay Area Rapid Transit District; | ||||||||||||||
Series 2012 A, Sales Tax RB | 5.00% | 07/01/2036 | $ | 730 | $ 807,314 | |||||||||
Series 2015 A, Ref. RB | 5.00% | 07/01/2032 | 1,500 | 1,753,695 | ||||||||||
San Francisco (City of) Bay Area Rapid Transit District (Election of 2016 Green Bond); Series 2017A-1, Unlimited Tax GO Bonds(f) | 5.00% | 08/01/2047 | 3,425 | 3,945,634 | ||||||||||
San Joaquin Hills Transportation Corridor Agency; | ||||||||||||||
Series 2014 A, Ref. Sr. Lien Toll Road RB | 5.00% | 01/15/2044 | 1,730 | 1,866,099 | ||||||||||
Series 2014 B, Ref. Jr. Lien Toll Road RB | 5.25% | 01/15/2044 | 2,000 | 2,157,240 | ||||||||||
San Jose Evergreen Community College District (Election of 2004); Series 2008 B, Unlimited Tax CAB GO Bonds (INS-AGM)(d)(e) | 0.00% | 09/01/2031 | 3,110 | 2,161,201 | ||||||||||
San Luis Obispo (County of) Financing Authority (Lopez Dam Improvement); Series 2011 A, Ref. RB (INS -AGM)(d) | 5.00% | 08/01/2030 | 1,500 | 1,609,020 | ||||||||||
San Mateo (City of) Foster School District (Election 2008); Series 2010, Unlimited Tax Conv. CAB GO Bonds(g) | 6.62% | 08/01/2042 | 510 | 460,969 | ||||||||||
Santa Margarita Water District (Community Facilities DistrictNo. 2013-1); | ||||||||||||||
Series 2013, Special Tax RB | 5.63% | 09/01/2036 | 1,000 | 1,074,490 | ||||||||||
Series 2013, Special Tax RB | 5.62% | 09/01/2043 | 1,000 | 1,073,850 | ||||||||||
Santaluz Community Facilities District No. 2 (Improvement Area No. 1); | ||||||||||||||
Series 2011 A, Ref. Special Tax RB | 5.00% | 09/01/2028 | 820 | 878,917 | ||||||||||
Series 2011 A, Ref. Special Tax RB | 5.00% | 09/01/2029 | 710 | 761,014 | ||||||||||
Series 2011 A, Ref. Special Tax RB | 5.10% | 09/01/2030 | 460 | 493,700 | ||||||||||
Silicon Valley Tobacco Securitization Authority (Santa Clara); Series 2007 A, Tobacco Settlement CAB Turbo RB(e) | 0.00% | 06/01/2036 | 4,000 | 1,450,680 | ||||||||||
Simi Valley Unified School District (Election of 2004); | ||||||||||||||
Series 2007 C, Unlimited Tax CAB GO Bonds (INS-AGM)(d)(e) | 0.00% | 08/01/2028 | 3,480 | 2,665,123 | ||||||||||
Series 2007 C, Unlimited Tax CAB GO Bonds (INS-AGM)(d)(e) | 0.00% | 08/01/2030 | 2,765 | 1,940,947 | ||||||||||
South Orange (County of) Public Financing Authority (Ladera Ranch); Series 2014 A, Ref. Sr. Lien Special Tax RB | 5.00% | 08/15/2034 | 895 | 959,395 | ||||||||||
Southern California Metropolitan Water District; Series 2009 B, Ref. RB(f) | 5.00% | 07/01/2027 | 8,585 | 8,683,813 | ||||||||||
Southern California Public Power Authority (Milford Wind Corridor Phase II); | ||||||||||||||
Series 2011 1, RB(f) | 5.25% | 07/01/2031 | 2,100 | 2,260,860 | ||||||||||
Series2011-1, RB(f) | 5.25% | 07/01/2029 | 2,100 | 2,261,868 | ||||||||||
Southern California Tobacco Securitization Authority (San Diego County Tobacco Asset Securitization Corp.); | ||||||||||||||
Series 2006A-1, Sr. Tobacco Settlement Asset-Backed RB | 5.00% | 06/01/2037 | 860 | 860,026 | ||||||||||
Series 2006A-1, Sr. Tobacco Settlement Asset-Backed RB | 5.13% | 06/01/2046 | 3,840 | 3,840,115 | ||||||||||
Tustin (City of) Public Financing Authority; Series 2011 A, Water RB(b)(c) | 5.00% | 04/01/2021 | 1,000 | 1,074,210 | ||||||||||
Tustin Unified School District (Community Facilities DistrictNo. 97-1); Series 2015, Ref. Special Tax RB (INS-BAM)(d) | 5.00% | 09/01/2038 | 3,000 | 3,382,260 | ||||||||||
Val Verde Unified School District; Series 2009 A, Ref. COP (INS-AGC)(d) | 5.13% | 03/01/2036 | 1,475 | 1,475,000 | ||||||||||
Walnut (City of) Energy Center Authority; Series 2010 A, Ref. RB | 5.00% | 01/01/2035 | 3,000 | 3,076,200 | ||||||||||
West Contra Costa Unified School District; Series 2005, Unlimited Tax CAB GO Bonds (INS -NATL)(d)(e) | 0.00% | 08/01/2025 | 2,500 | 2,174,000 | ||||||||||
Western Riverside (County of) Water & Wastewater Financing Authority (Eastern Municipal Water District Improvement); Series 2009, RB (INS-AGC)(d) | 5.62% | 09/01/2039 | 1,000 | 1,019,180 | ||||||||||
Whittier (City of) (Presbyterian Intercommunity Hospital, Inc.); Series 2014, Health Facility RB | 5.00% | 06/01/2044 | 1,500 | 1,616,520 | ||||||||||
Woodland (City of) Community Facilities District 1; Series 2019, Special Tax RB | 5.00% | 09/01/2044 | 1,155 | 1,255,600 | ||||||||||
Yosemite Community College District (Election of 2004); Series 2008 C, Unlimited Tax CAB GO Bonds (INS-AGM)(d)(e) | 0.00% | 08/01/2024 | 4,685 | 4,182,440 | ||||||||||
433,259,660 | ||||||||||||||
Guam-1.78% | ||||||||||||||
Guam (Territory of); Series 2011 A, Business Privilege Tax RB | 5.13% | 01/01/2042 | 1,500 | 1,540,740 | ||||||||||
Guam (Territory of) (Section 30); | ||||||||||||||
Series 2009 A, Limited Obligation RB(b)(c) | 5.37% | 12/01/2019 | 1,000 | 1,028,450 | ||||||||||
Series 2009 A, Limited Obligation RB(b)(c) | 5.62% | 12/01/2019 | 660 | 679,991 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco California Tax-Free Income Fund
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||||
| ||||||||||||||||
Guam-(continued) | ||||||||||||||||
Guam (Territory of) International Airport Authority; Series 2013 C, General RB(k) | 6.25% | 10/01/2034 | $ | 1,000 | $ | 1,139,680 | ||||||||||
| ||||||||||||||||
Guam (Territory of) Waterworks Authority; Series 2014 A, Ref. Water & Wastewater System RB | 5.00% | 07/01/2035 | 765 | 815,505 | ||||||||||||
| ||||||||||||||||
Port Authority of Guam; Series 2018 A, RB | 5.00% | 07/01/2048 | 1,825 | 1,996,076 | ||||||||||||
| ||||||||||||||||
7,200,442 | ||||||||||||||||
| ||||||||||||||||
Virgin Islands-1.02% | ||||||||||||||||
Virgin Islands (Government of) Port Authority; | ||||||||||||||||
Series 2014 A, Ref. Marine RB(k) | 5.00% | 09/01/2029 | 1,645 | 1,616,048 | ||||||||||||
| ||||||||||||||||
Series 2014 A, Ref. RB(k) | 5.00% | 09/01/2033 | 1,500 | 1,451,070 | ||||||||||||
| ||||||||||||||||
Virgin Islands (Government of) Public Finance Authority; Series 2015, RB(j) | 5.00% | 09/01/2030 | 1,000 | 1,076,570 | ||||||||||||
| ||||||||||||||||
4,143,688 | ||||||||||||||||
| ||||||||||||||||
Puerto Rico-0.42% | ||||||||||||||||
Children’s Trust Fund; Series 2002, Tobacco Settlement Asset-Backed RB | 5.38% | 05/15/2033 | 870 | 878,413 | ||||||||||||
| ||||||||||||||||
Puerto Rico Sales Tax Financing Corp.; Series 2018A-1, CAB RB(e) | 0.00% | 07/01/2027 | 1,120 | 814,016 | ||||||||||||
| ||||||||||||||||
1,692,429 | ||||||||||||||||
| ||||||||||||||||
TOTAL INVESTMENTS IN SECURITIES(l)-110.38% (Cost $424,060,252) | 446,296,219 | |||||||||||||||
| ||||||||||||||||
FLOATING RATE NOTE OBLIGATIONS-(11.76)% | ||||||||||||||||
Notes with interest and fee rates ranging from 2.24% to 2.56% at 02/28/2019 and contractual maturities of collateral ranging from 07/01/2022 to 04/01/2056 | (47,555,000 | ) | ||||||||||||||
| ||||||||||||||||
OTHER ASSETS LESS LIABILITIES-1.38% | 5,588,357 | |||||||||||||||
| ||||||||||||||||
NET ASSETS-100.00% | $ | 404,329,576 | ||||||||||||||
|
Investment Abbreviations: | ||
AGC | - Assured Guaranty Corp. | |
AGM | - Assured Guaranty Municipal Corp. | |
AMBAC | - American Municipal Bond Assurance Corp. | |
BAM | - Build America Mutual Assurance Co. | |
CAB | - Capital Appreciation Bonds | |
Conv. | - Convertible | |
COP | - Certificates of Participation | |
GO | - General Obligation | |
INS | - Insurer | |
Jr. | - Junior | |
LOC | - Letter of Credit | |
NATL | - National Public Finance Guarantee Corp. | |
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.
12 Invesco California Tax-Free Income Fund
Notes to Schedule of Investments:
(a) | Calculated as a percentage of net assets. Amounts in excess of 100% are due to the Fund’s use of leverage. |
(b) | Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral. |
(c) | Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put. |
(d) | Principal and/or interest payments are secured by the bond insurance company listed. |
(e) | Zero coupon bond issued at a discount. |
(f) | Underlying security related to TOB Trusts entered into by the Fund. See Note1J. |
(g) | Convertible CAB. The interest rate shown represents the coupon rate at which the bond will accrue at a specified future date. |
(h) | Demand security payable upon demand by the Fund at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically by the issuer or agent based on current market conditions. Rate shown is the rate in effect on February 28, 2019. |
(i) | Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary. |
(j) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). 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 28, 2019 was $21,974,427, which represented 5.43% of the Fund’s Net Assets. |
(k) | Security subject to the alternative minimum tax. |
(l) | Entities may either issue, guarantee, back or otherwise enhance the credit quality of a security. The entities are not primarily responsible for the issuer’s obligation but may be called upon to satisfy issuer’s obligations. No concentration of any single entity was greater than 5% each. |
(m) | Floating rate note obligations related to securities held. The interest and fee rates shown reflect the rates in effect at February 28, 2019. At February 28, 2019, the Fund’s investments with a value of $75,888,394 are held by TOB Trusts and serve as collateral for the $47,555,000 in the floating rate note obligations outstanding at that date. |
Portfolio Composition
By credit sector, based on total investments
as of February 28, 2019
Revenue Bonds | 71.9% | |
General Obligation Bonds | 16.8 | |
Pre-refunded Bonds | 11.3 |
Open Futures Contracts(a) | ||||||||||||||||||||
Short Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation | |||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
U.S. Treasury 10 Year Notes | 191 | June-2019 | $(23,302,000) | $68,186 | $68,186 |
(a) | Futures contracts collateralized by $245,000 held with Goldman Sachs & Co., the futures commission merchant. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 Invesco California Tax-Free Income Fund
Statement of Assets and Liabilities
February 28, 2019
(Unaudited)
Assets: | ||
Investments in securities, at value | ||
(Cost $424,060,252) | $446,296,219 | |
Other investments: | ||
Variation margin receivable – futures contracts | 41,780 | |
Deposits with brokers: | ||
Cash collateral – OTC Derivatives | 245,000 | |
Cash | 187,238 | |
Receivable for: | ||
Fund shares sold | 1,014,855 | |
Interest | 5,085,617 | |
Investment for trustee deferred compensation and retirement plans | 66,842 | |
Other assets | 44,195 | |
Total assets | 452,981,746 | |
Liabilities: | ||
Floating rate note obligations | 47,555,000 | |
Payable for: | ||
Dividends | 484,639 | |
Fund shares reacquired | 251,795 | |
Accrued fees to affiliates | 134,487 | |
Accrued trustees’ and officers’ fees and benefits | 3,696 | |
Accrued other operating expenses | 101,394 | |
Trustee deferred compensation and retirement plans | 121,159 | |
Total liabilities | 48,652,170 | |
Net assets applicable to shares outstanding | $404,329,576 | |
Net assets consist of: | ||
Shares of beneficial interest | $397,824,925 | |
Distributable earnings | 6,504,651 | |
$404,329,576 |
Net Assets: | ||
Class A | $318,833,495 | |
Class C | $ 31,318,321 | |
Class Y | $ 42,414,084 | |
Class R6 | $ 11,763,676 | |
Shares outstanding, no par value, with an unlimited number of shares authorized: | ||
Class A | 27,319,103 | |
Class C | 2,665,011 | |
Class Y | 3,621,162 | |
Class R6 | 1,003,523 | |
Class A: | ||
Net asset value per share | $ 11.67 | |
Maximum offering price per share | ||
(Net asset value of $11.67 ÷ 95.75%) | $ 12.19 | |
Class C: | ||
Net asset value and offering price per share | $ 11.75 | |
Class Y: | ||
Net asset value and offering price per share | $ 11.71 | |
Class R6: | ||
Net asset value and offering price per share | $ 11.72 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 Invesco California Tax-Free Income Fund
Statement of Operations
For the six months ended February 28, 2019
(Unaudited)
Investment income: | ||||
Interest | $ | 9,567,726 | ||
| ||||
Expenses: | ||||
Advisory fees | 938,346 | |||
| ||||
Administrative services fees | 45,384 | |||
| ||||
Custodian fees | (470 | ) | ||
| ||||
Distribution fees: | ||||
Class A | 372,425 | |||
| ||||
Class C | 167,210 | |||
| ||||
Interest, facilities and maintenance fees | 608,131 | |||
| ||||
Transfer agent fees – A, C and Y | 190,586 | |||
| ||||
Transfer agent fees – R6 | 22 | |||
| ||||
Trustees’ and officers’ fees and benefits | 13,203 | |||
| ||||
Registration and filing fees | 12,668 | |||
| ||||
Reports to shareholders | 12,220 | |||
| ||||
Professional services fees | 20,342 | |||
| ||||
Taxes | 26,899 | |||
| ||||
Other | 12,344 | |||
| ||||
Total expenses | 2,419,310 | |||
| ||||
Less: Expense offset arrangement(s) | (264 | ) | ||
| ||||
Net expenses | 2,419,046 | |||
| ||||
Net investment income | 7,148,680 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities | (1,253,061 | ) | ||
| ||||
Futures contracts | (483,691 | ) | ||
| ||||
(1,736,752 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | (1,674,535 | ) | ||
| ||||
Futures contracts | 68,186 | |||
| ||||
(1,606,349 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (3,343,101 | ) | ||
| ||||
Net increase in net assets resulting from operations | $ | 3,805,579 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 Invesco California Tax-Free Income Fund
Statement of Changes in Net Assets
For the six months ended February 28, 2019 and the year ended August 31, 2018
(Unaudited)
February 28, | August 31, | |||||||
2019 | 2018 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 7,148,680 | $ | 14,698,223 | ||||
| ||||||||
Net realized gain (loss) | (1,736,752 | ) | (1,075,869 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | (1,606,349 | ) | (11,749,146 | ) | ||||
| ||||||||
Net increase in net assets resulting from operations | 3,805,579 | 1,873,208 | ||||||
| ||||||||
Distributions to shareholders from distributable earnings(1): | ||||||||
Class A | (5,439,526 | ) | (11,286,198 | ) | ||||
| ||||||||
Class B | – | (74,772 | ) | |||||
| ||||||||
Class C | (676,379 | ) | (1,587,707 | ) | ||||
| ||||||||
Class Y | (799,772 | ) | (1,664,405 | ) | ||||
| ||||||||
Class R6 | (229,509 | ) | (232,741 | ) | ||||
| ||||||||
Total distributions to shareholders from distributable earnings | (7,145,186 | ) | (14,845,823 | ) | ||||
| ||||||||
Share transactions-net: | ||||||||
Class A | 14,034,962 | (21,912,047 | ) | |||||
| ||||||||
Class B | – | (6,256,180 | ) | |||||
| ||||||||
Class C | (18,204,516 | ) | (807,095 | ) | ||||
| ||||||||
Class Y | (2,284,865 | ) | 1,108,834 | |||||
| ||||||||
Class R6 | 334,500 | 11,657,490 | ||||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (6,119,919 | ) | (16,208,998 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (9,459,526 | ) | (29,181,613 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 413,789,102 | 442,970,715 | ||||||
| ||||||||
End of period | $ | 404,329,576 | $ | 413,789,102 | ||||
|
(1) | The Securities and Exchange Commission eliminated the requirement to disclose distribution components separately, except for tax return of capital. For the year ended August 31, 2018, distributions to shareholders from distributable earnings consisted of distributions from net investment income. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 Invesco California Tax-Free Income Fund
Statement of Cash Flows
For the six month ended February 28, 2019
(Unaudited)
Cash provided by operating activities: | ||||
Net increase in net assets resulting from operations | $ | 3,805,579 | ||
| ||||
Adjustments to reconcile the change in net assets from operations to net cash provided by operating activities: | ||||
Purchases of investments | (39,142,778 | ) | ||
| ||||
Proceeds from sales of investments | 51,490,450 | |||
| ||||
Purchases of short-term investments, net | (3,605,000 | ) | ||
| ||||
Amortization of premium on investment securities | 1,207,655 | |||
| ||||
Accretion of discount on investment securities | (1,116,526 | ) | ||
| ||||
Decrease in receivables and other assets | 61,366 | |||
| ||||
Decrease in accrued expenses and other payables | (25,524 | ) | ||
| ||||
Increase in variation margin receivable - futures contracts | (41,780 | ) | ||
| ||||
Net realized loss from investment securities | 1,253,061 | |||
| ||||
Net change in unrealized depreciation on investment securities | 1,674,535 | |||
| ||||
Increase in cash collateral swap agreements | (245,000 | ) | ||
| ||||
Net cash provided by operating activities | 15,316,038 | |||
| ||||
Cash provided by (used in) financing activities: | ||||
Dividends paid to shareholders from distributable earnings | (2,760,913 | ) | ||
| ||||
Proceeds from shares of beneficial interest sold | 56,755,815 | |||
| ||||
Proceeds of TOB Trusts | 1,505,000 | |||
| ||||
Repayments of TOB Trusts | (3,620,000 | ) | ||
| ||||
Disbursements from shares of beneficial interest reacquired | (68,088,719 | ) | ||
| ||||
Net cash provided by (used in) financing activities | (16,208,817 | ) | ||
| ||||
Net decrease in cash and cash equivalents | (892,779 | ) | ||
| ||||
Cash and cash equivalents at beginning of period | 1,080,017 | |||
| ||||
Cash and cash equivalents at end of period | $ | 187,238 | ||
| ||||
Non-cash financing activities: | ||||
Value of shares of beneficial interest issued in reinvestment of dividends paid to shareholders | $ | 4,338,162 | ||
| ||||
Supplemental disclosure of cash flow information: | ||||
| ||||
Cash paid during the period for interest, facilities and maintenance fees | $ | 608,131 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
17 Invesco California Tax-Free Income Fund
Notes to Financial Statements
February 28, 2019
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco CaliforniaTax-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 anopen-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each 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 C, Class Y and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with afront-end sales charge unless certain waiver criteria are met. 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 Class R6shares are sold at net asset value.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946,Financial Services -Investment Companies. The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations- Securities, including restricted securities, are valued according to the following policy. |
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 asinstitution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Securities for which market quotations either are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. 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.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
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 (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities.Pay-in-kind interest income andnon-cash dividend income received in the form of securitiesin-lieu of cash are recorded at the fair value of the securities received. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates 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, |
18 Invesco California Tax-Free Income Fund
the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions- Distributions from net investment income, if any, are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on theex-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 Trust intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Trust’s taxable earnings to shareholders. As such, the Trust 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 Trust recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Trust’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
In addition, the Trust intends to invest in such municipal securities to allow it to qualify to pay shareholders “exempt dividends”, as defined in the Internal Revenue Code.
The Trust files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Trust 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 Rule12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R6are 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. | 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 the credit agreement. |
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 theperiod-end date and before the date the financial statements are released to print. |
I. | Indemnifications- Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Fund is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
J. | Floating Rate Note Obligations- The Fund invests in inverse floating rate securities, such as Tender Option Bonds (“TOBs”), for investment purposes and to enhance the yield of the Fund. Such securities may be purchased in the secondary market without first owning an underlying bond but generally are created through the sale of fixed rate bonds by the Fund to special purpose trusts established by a broker dealer or by the Fund (“TOB Trusts”) in exchange for cash and residual interests in the TOB Trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The TOB Trusts finance the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Fund to retain residual interests in the bonds. The floating rate notes issued by the TOB Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the TOB Trusts for redemption at par at each reset date. The residual interests held by the Fund (inverse floating rate securities) 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 TOB Trust to the Fund, thereby collapsing the TOB Trust. Inverse floating rate securities 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. |
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 decreases in the value of such securities in response to changes in interest rates to a greater extent than fixed rate securities 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 notes created by the TOB Trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such notes for repayment of principal, may not be able to be remarketed to third parties. In such cases, the TOB Trust holding the fixed rate bonds may be collapsed with the entity that contributed the fixed rate bonds to the TOB Trust. In the case where a TOB Trust is collapsed with the Fund, the Fund will be required to repay the principal amount of the tendered securities, which may require the Fund to sell other portfolio holdings to raise cash to meet that obligation. The Fund could therefore be required to sell other portfolio holdings at a disadvantageous time or price to raise cash to meet this obligation, which risk will be heightened during times of market volatility, illiquidity or uncertainty. The embedded leverage in the TOB Trust could cause the Fund to lose more money than the value of the asset it has contributed to the TOB Trust and greater levels of leverage create the potential for greater losses. In addition, a Fund may enter into reimbursement agreements with the liquidity provider of certain TOB transactions in connection with certain residuals held by the Fund. These agreements commit a Fund to reimburse the liquidity provider to the extent that the liquidity provider must provide cash to a TOB Trust, including following the termination of a TOB Trust resulting from a mandatory tender event (“liquidity shortfall”). The reimbursement agreement will effectively make the Fund liable for the amount of the negative difference, if any, between the liquidation value of the underlying security and the purchase price of the floating rate notes issued by the TOB Trust.
The Fund accounts for the transfer of fixed rate bonds to the TOB 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 captionFloating rate note obligations on the
19 Invesco California Tax-Free Income Fund
Statement of Assets and Liabilities. The carrying amount of the Fund’s floating rate note obligations as reported on the Statement of Assets and Liabilities approximates its fair value. 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 TOB Trusts as a component ofInterest, facilities and maintenance fees on the Statement of Operations.
Final rules implementing section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Volcker Rule”) prohibit banking entities from engaging in proprietary trading of certain instruments and limit such entities’ investments in, and relationships with, “covered funds”, as defined in the rules. These rules preclude banking entities and their affiliates from sponsoring and/or providing services for existing TOB Trusts. A new TOB structure is being utilized by the Fund wherein the Fund, as holder of the residuals, will perform certain duties previously performed by banking entities as “sponsors” of TOB Trusts. These duties may be performed by a third-party service provider. The Fund’s expanded role under the new TOB structure may increase its operational and regulatory risk. The new structure is substantially similar to the previous structure; however, pursuant to the Volcker Rule, the remarketing agent would not be able to repurchase tendered floaters for its own account upon a failed remarketing. In the event of a failed remarketing, a banking entity serving as liquidity provider may loan the necessary funds to the TOB Trust to purchase the tendered floaters. The TOB Trust, not the Fund, would be the borrower and the loan from the liquidity provider will be secured by the purchased floaters now held by the TOB Trust. However, as previously described, the Fund would bear the risk of loss with respect to any liquidity shortfall to the extent it entered into a reimbursement agreement with the liquidity provider.
Further, the SEC and various banking agencies have adopted rules implementing credit risk retention requirements for asset-backed securities (the “Risk Retention Rules”). The Risk Retention Rules require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s municipal bonds. The Fund has adopted policies intended to comply with the Risk Retention Rules. The Risk Retention Rules may adversely affect the Fund’s ability to engage in TOB Trust transactions or increase the costs of such transactions in certain circumstances.
There can be no assurances that the new TOB structure will continue to be a viable form of leverage. Further, there can be no assurances that alternative forms of leverage will be available to the Fund in order to maintain current levels of leverage. Any alternative forms of leverage may be less advantageous to the Fund, and may adversely affect the Fund’s net asset value, distribution rate and ability to achieve its investment objective.
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 (the “1933 Act”), 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 atypical, 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.
K. | 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 the Fund’s investments in municipal securities.
There is some risk that a portion or all of the interest received from certaintax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |
First $ 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% |
For the six months ended February 28, 2019, the effective advisory fees incurred by the Fund was 0.47%.
Under the terms of a mastersub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “AffiliatedSub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such AffiliatedSub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such AffiliatedSub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2019, 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 C, Class Y and Class R6 shares to 1.50%, 2.00%, 1.25% and 1.25%, respectively, of the Fund’s average daily net assets (the “expense limits”). Prior to their conversion to Class A shares, the expense limit for Class B shares was 2.00% 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 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 ornon-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2019. During its term, the fee
20 Invesco California Tax-Free Income Fund
waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limit.
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 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into asub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and 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 orsub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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 Rule12b-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; and (2) Class C - up to 0.75% of the average daily net assets of Class C shares. The fees are accrued daily and paid monthly.
For the six months ended February 28, 2019, expenses incurred under these agreements are shown in the Statement of Operations asDistributionfees.
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 28, 2019, IDI advised the Fund that IDI retained $7,586 infront-end sales commissions from the sale of Class A shares and $8,076 and $254 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Fund are officers and directors of Invesco.
NOTE 3–Additional Valuation Information
Generally Accepted Accounting Principles (“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 28, 2019. 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.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments in Securities | ||||||||||||||||
| ||||||||||||||||
Municipal Obligations | $ – | $446,296,219 | $– | $446,296,219 | ||||||||||||
| ||||||||||||||||
Other Investments - Assets* | ||||||||||||||||
| ||||||||||||||||
Futures Contracts | 68,186 | – | – | 68,186 | ||||||||||||
| ||||||||||||||||
Total Investments | $68,186 | $446,296,219 | $– | $446,364,405 | ||||||||||||
| ||||||||||||||||
* Unrealized appreciation. |
NOTE 4–Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions andclose-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
21 Invesco California Tax-Free Income Fund
Value of Derivative Investments atPeriod-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of February 28, 2019:
Value | ||
Interest | ||
Derivative Assets | Rate Risk | |
Unrealized appreciation on futures contracts – Exchange-Traded(a) | $68,186 | |
Derivatives not subject to master netting agreements | - | |
Total Derivative Assets subject to master netting agreements | $68,186 | |
(a) The daily variation margin receivable (payable) atperiod-end is recorded in the Statement of Assets and Liabilities. | ||
Effect of Derivative Investments for the six months ended February 28, 2019 |
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain (Loss) on | |||||
Statement of Operations | |||||
Interest | |||||
Rate Risk | |||||
Realized (Loss): | |||||
Futures contracts | $ | (483,691 | ) | ||
Change in Net Unrealized Appreciation: | |||||
Futures contracts | 68,186 | ||||
Total | $ | (415,505 | ) |
The table below summarizes the four-month average notional value of derivatives held during the period.
Futures | ||
Contracts | ||
Average notional value | $19,322,063 |
NOTE 5–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $264.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefitsinclude 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, andTrustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan.Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances and Borrowings
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any atperiod-end, are shown in the Statement of Assets and Liabilities under the payable captionAmount 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 TOB Trusts are accounted for as secured borrowings. The average floating rate notes outstanding and average annual interest and fee rate related to inverse floating rate note obligations during the six months ended February 28, 2019 were $48,210,000 and 2.54%, respectively.
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 GAAP. 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 fiscalyear-end.
22 Invesco California Tax-Free Income Fund
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2018, as follows:
Capital Loss Carryforward*
| ||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||
August 31, 2018 | $ | 1,906,728 | $ | - | $1,906,728 | |||||
Not subject to expiration | 5,873,184 | 7,114,208 | 12,957,392 | |||||||
$ | 7,749,912 | $ | 7,114,208 | $14,864,120 |
* | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2019 was $39,219,294 and $51,250,150, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reportingperiod-end.
Unrealized Appreciation (Depreciation) of Investments on a TaxBasis
| ||||
Aggregate unrealized appreciation of investments | $ | 24,564,818 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (1,660,542 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 22,904,276 | ||
|
Cost of investments for tax purposes is $423,460,129.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
February 28, 2019(a) | August 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 3,556,326 | $ | 41,257,464 | 2,499,917 | $ | 29,773,939 | ||||||||||
| ||||||||||||||||
Class B(b) | – | – | 2 | 23 | ||||||||||||
| ||||||||||||||||
Class C | 439,797 | 5,136,124 | 1,412,191 | 16,962,855 | ||||||||||||
| ||||||||||||||||
Class Y | 619,465 | 7,203,919 | 1,598,496 | 19,122,183 | ||||||||||||
| ||||||||||||||||
Class R6 | 324,768 | 3,788,641 | 1,102,949 | 13,173,581 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 284,513 | 3,301,334 | 601,520 | 7,139,093 | ||||||||||||
| ||||||||||||||||
Class B(b) | – | – | 2,711 | 32,853 | ||||||||||||
| ||||||||||||||||
Class C | 37,318 | 435,645 | 89,874 | 1,073,253 | ||||||||||||
| ||||||||||||||||
Class Y | 37,380 | 435,511 | 71,708 | 854,632 | ||||||||||||
| ||||||||||||||||
Class R6 | 14,222 | 165,672 | 15,319 | 181,167 | ||||||||||||
| ||||||||||||||||
Conversion of Class B shares to Class A shares:(c) | ||||||||||||||||
Class A | – | – | 353,611 | 4,215,042 | ||||||||||||
| ||||||||||||||||
Class B | – | – | (347,895 | ) | (4,215,042 | ) | ||||||||||
|
23 Invesco California Tax-Free Income Fund
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
February 28, 2019(a) | August 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (2,633,363 | ) | (30,523,836 | ) | (5,308,093 | ) | (63,040,121 | ) | ||||||||
| ||||||||||||||||
Class B(b) | – | – | (173,722 | ) | (2,074,014 | ) | ||||||||||
| ||||||||||||||||
Class C | (2,036,291 | ) | (23,776,285 | ) | (1,576,923 | ) | (18,843,203 | ) | ||||||||
| ||||||||||||||||
Class Y | (852,864 | ) | (9,924,295 | ) | (1,575,593 | ) | (18,867,981 | ) | ||||||||
| ||||||||||||||||
Class R6 | (311,167 | ) | (3,619,813 | ) | (143,404 | ) | (1,697,258 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (519,896 | ) | $ | (6,119,919 | ) | (1,377,332 | ) | $ | (16,208,998 | ) | ||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 60% 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) | Class B shares activity for the period September 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
NOTE 11–Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income(a) | Net gains on securities (both | Total from investment operations | Dividends from net investment income | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets waivers and/or expenses | Ratio of net assets without fee expenses absorbed | Supplemental to average net assets waivers | Ratio of net to average | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $11.76 | $0.21 | $(0.09 | ) | $0.12 | $(0.21 | ) | $11.67 | 1.02 | % | $318,833 | 1.19 | %(d) | 1.19 | %(d) | 0.89 | %(d) | 3.60 | %(d) | 9 | % | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 12.12 | 0.41 | (0.35 | ) | 0.06 | (0.42 | ) | 11.76 | 0.48 | 307,176 | 1.27 | 1.27 | 0.92 | 3.46 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 12.63 | 0.45 | (0.51 | ) | (0.06 | ) | (0.45 | ) | 12.12 | (0.41 | ) | 338,904 | 1.02 | 1.02 | 0.88 | 3.70 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 12.09 | 0.46 | 0.54 | 1.00 | (0.46 | ) | 12.63 | 8.37 | 353,372 | 0.94 | 0.94 | 0.87 | 3.71 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 12.15 | 0.48 | (0.06 | ) | 0.42 | (0.48 | ) | 12.09 | 3.48 | 300,873 | 0.91 | 0.91 | 0.86 | 3.94 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 11.20 | 0.49 | 0.95 | 1.44 | (0.49 | ) | 12.15 | 13.14 | 296,200 | 0.93 | 0.93 | 0.87 | 4.25 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 11.84 | 0.18 | (0.09 | ) | 0.09 | (0.18 | ) | 11.75 | 0.76 | 31,318 | 1.69 | (d) | 1.69 | (d) | 1.39 | (d) | 3.10 | (d) | 9 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 12.19 | 0.36 | (0.35 | ) | 0.01 | (0.36 | ) | 11.84 | 0.07 | (e) | 50,017 | 1.75 | (e) | 1.75 | (e) | 1.40 | (e) | 2.98 | (e) | 18 | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 12.71 | 0.39 | (0.52 | ) | (0.13 | ) | (0.39 | ) | 12.19 | (0.94 | ) | 52,424 | 1.52 | 1.52 | 1.38 | 3.20 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 12.16 | 0.40 | 0.54 | 0.94 | (0.39 | ) | 12.71 | 7.88 | 57,137 | 1.44 | 1.44 | 1.37 | 3.21 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 12.23 | 0.42 | (0.07 | ) | 0.35 | (0.42 | ) | 12.16 | 2.87 | 28,335 | 1.41 | 1.41 | 1.36 | 3.44 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 11.27 | 0.44 | 0.96 | 1.40 | (0.44 | ) | 12.23 | 12.62 | (e) | 20,485 | 1.43 | (e) | 1.43 | (e) | 1.37 | (e) | 3.75 | (e) | 12 | ||||||||||||||||||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 11.81 | 0.22 | (0.10 | ) | 0.12 | (0.22 | ) | 11.71 | 1.06 | 42,414 | 0.94 | (d) | 0.94 | (d) | 0.64 | (d) | 3.85 | (d) | 9 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 12.16 | 0.44 | (0.34 | ) | 0.10 | (0.45 | ) | 11.81 | 0.83 | 45,078 | 1.03 | 1.03 | 0.68 | 3.70 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 12.68 | 0.48 | (0.52 | ) | (0.04 | ) | (0.48 | ) | 12.16 | (0.24 | ) | 45,285 | 0.77 | 0.77 | 0.63 | 3.95 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 12.13 | 0.49 | 0.55 | 1.04 | (0.49 | ) | 12.68 | 8.70 | 39,091 | 0.69 | 0.69 | 0.62 | 3.96 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 12.20 | 0.51 | (0.07 | ) | 0.44 | (0.51 | ) | 12.13 | 3.65 | 23,698 | 0.66 | 0.66 | 0.61 | 4.19 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 11.24 | 0.52 | 0.96 | 1.48 | (0.52 | ) | 12.20 | 13.48 | 22,380 | 0.69 | 0.69 | 0.63 | 4.49 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 11.80 | 0.23 | (0.08 | ) | 0.15 | (0.23 | ) | 11.72 | 1.28 | 11,764 | 0.85 | (d) | 0.85 | (d) | 0.55 | (d) | 3.94 | (d) | 9 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 12.17 | 0.45 | (0.37 | ) | 0.08 | (0.45 | ) | 11.80 | 0.70 | 11,518 | 0.96 | 0.96 | 0.61 | 3.77 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17(f) | 11.97 | 0.19 | 0.21 | 0.40 | (0.20 | ) | 12.17 | 3.40 | 10 | 0.81 | (g) | 0.81 | (g) | 0.67 | (g) | 3.91 | (g) | 18 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $303,934, $44,959, $42,486 and $11,226 for Class A, Class C, Class Y and Class R6 shares, respectively. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual12b-1 fees of 0.72% and 0.74% for the years ended August 31, 2018 and 2014, respectively. |
(f) | Commencement date of April 4, 2017. |
(g) | Annualized. |
24 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, 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, 2018 through February 28, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||
Beginning Account Value (09/01/18) | Ending Account Value (02/28/19)1 | Expenses Paid During Period2 | Ending Account Value (02/28/19) | Expenses Paid During Period2 | Annualized Expense Ratio | |||||||
Class A | $1,000.00 | $1,010.20 | $5.93 | $1,018.89 | $5.96 | 1.19% | ||||||
Class C | 1,000.00 | 1,007.60 | 8.41 | 1,016.41 | 8.45 | 1.69 | ||||||
Class Y | 1,000.00 | 1,010.60 | 4.69 | 1,020.13 | 4.71 | 0.94 | ||||||
Class R6 | 1,000.00 | 1,012.80 | 4.24 | 1,020.58 | 4.26 | 0.85 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2018 through February 28, 2019, 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 181/365 to reflect the most recent fiscal half year. |
25 Invesco California Tax-Free Income Fund
Explore High-Conviction Investing with Invesco
Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
⬛ | Fund reports and prospectuses |
⬛ | Quarterly statements |
⬛ | Daily confirmations |
⬛ | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on FormN-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s FormsN-Q (or any successor Form) on the SEC website at sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov. | ![]() | |
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd. |
SEC file numbers:811-09913 and333-36074 | Invesco Distributors, Inc. | MS-CTFI-SAR-1 | 04242019 0745 |
|
Semiannual Report to Shareholders February 28, 2019
Invesco Core Plus Bond Fund
Nasdaq: A: ACPSX ∎ C: CPCFX ∎ R: CPBRX ∎ Y: CPBYX ∎ R5: CPIIX ∎ R6: CPBFX | |
| ||||
2 |
Fund Performance | |||
4 | Letters to Shareholders | |||
5 | Schedule of Investments | |||
37 | Financial Statements | |||
40 | Notes to Financial Statements | |||
50 | Financial Highlights | |||
52 | Fund Expenses |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800 959 4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most currentmonth-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, 8/31/18 to 2/28/19, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) orfront-end sales charges, which would have reduced performance. | ||
Class A Shares | 1.10% | |
Class C Shares | 0.62 | |
Class R Shares | 0.97 | |
Class Y Shares | 1.22 | |
Class R5 Shares | 1.13 | |
Class R6 Shares | 1.25 | |
Bloomberg Barclays U.S. Aggregate Bond Index▼ (Broad Market/Style-Specific Index) | 1.99 | |
Lipper Core Plus Bond Funds Index∎(Peer Group Index) | 1.97 | |
Source(s):▼FactSet Research Systems Inc.;∎Lipper Inc. | ||
TheBloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index considered representative of the US investment grade, fixed-rate bond market. | ||
TheLipper Core Plus Bonds Funds Index is an unmanaged index considered representative of core plus bond funds tracked by Lipper. | ||
The Fund is not managed to track the performance of any particular index, including the indexes described 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. |
For more information about your Fund |
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. |
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends. |
2 | Invesco Core Plus Bond Fund |
Average Annual Total Returns |
| |||
As of 2/28/19, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (6/3/09) | 3.88 | % | ||
5 Years | 1.96 | |||
1 Year | -2.91 | |||
Class C Shares* | ||||
Inception (6/3/09) | 3.55 | % | ||
5 Years | 2.06 | |||
1 Year | -0.38 | |||
Class R Shares | ||||
Inception (6/3/09) | 4.08 | % | ||
5 Years | 2.59 | |||
1 Year | 1.11 | |||
Class Y Shares | ||||
Inception (6/3/09) | 4.61 | % | ||
5 Years | 3.10 | |||
1 Year | 1.61 | |||
Class R5 Shares | ||||
Inception (6/3/09) | 4.59 | % | ||
5 Years | 3.11 | |||
1 Year | 1.61 | |||
Class R6 Shares | ||||
Inception | 4.55 | % | ||
5 Years | 3.18 | |||
1 Year | 1.67 | |||
* Effective January 26, 2019, Class C share performance includes the conversion to A shares after 10 years. |
|
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recentmonth-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 C, Class R, Class Y, Class R5 and Class R6
Average Annual Total Returns |
| |||
As of 12/31/18, the most recent calendar quarter end, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (6/3/09) | 3.69 | % | ||
5 Years | 1.97 | |||
1 Year | -6.81 | |||
Class C Shares | ||||
Inception (6/3/09) | 3.38 | % | ||
5 Years | 2.09 | |||
1 Year | -4.30 | |||
Class R Shares | ||||
Inception (6/3/09) | 3.90 | % | ||
5 Years | 2.60 | |||
1 Year | -2.87 | |||
Class Y Shares | ||||
Inception (6/3/09) | 4.42 | % | ||
5 Years | 3.11 | |||
1 Year | -2.46 | |||
Class R5 Shares | ||||
Inception (6/3/09) | 4.42 | % | ||
5 Years | 3.14 | |||
1 Year | -2.38 | |||
Class R6 Shares | ||||
Inception | 4.37 | % | ||
5 Years | 3.21 | |||
1 Year | -2.32 |
shares was 0.76%, 1.51%, 1.01%, 0.51%, 0.51% and 0.45%, 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 C, Class R, Class Y, Class R5 and Class R6 shares was 0.84%, 1.59%, 1.09%, 0.59%, 0.56% and 0.46%, 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 4.25% 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, Class R5 and Class R6 shares do not have afront-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2020. See current prospectus for more information. |
2 | Total annual Fund operating expenses after any contractual fee waivers by the adviser in effect through at least December 31, 2019. See current prospectus for more information. |
3 | Invesco Core Plus Bond Fund |
Letters to Shareholders
Bruce Crockett |
| Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time; monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the Bruce Crockett investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | ||
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory andsub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper, Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. | ||||
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. | ||||
Sincerely, | ||||
| ||||
Bruce L. Crockett | ||||
Independent Chair | ||||
Invesco Funds Board of Trustees |
Andrew Schlossberg |
| Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward. Our website,invesco.com/us, offers a wide range of market insights and investment perspectives. | ||
On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246. | ||||
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. | ||||
Sincerely, | ||||
![]() | ||||
Andrew Schlossberg | ||||
Head of the Americas, |
Senior Managing Director, Invesco Ltd.
4 | Invesco Core Plus Bond Fund |
Schedule of Investments(a)
February 28, 2019
(Unaudited)
Principal Amount | Value | |||||||
U.S. Dollar Denominated Bonds & Notes-45.53% |
| |||||||
Aerospace & Defense-0.24% |
| |||||||
BBA U.S. Holdings, Inc., Sr. Unsec. Notes, 5.38%, 05/01/2026(b) | $ | 119,000 | $ | 121,529 | ||||
L3 Technologies, Inc., Sr. Unsec. Gtd. Global Notes, 3.85%, 12/15/2026 | 600,000 | 597,962 | ||||||
Moog, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 12/01/2022(b) | 97,000 | 98,778 | ||||||
Northrop Grumman Corp., Sr. Unsec. Global Notes, 3.25%, 01/15/2028 | 600,000 | 575,236 | ||||||
Spirit AeroSystems, Inc., Sr. Unsec. Gtd. Global Notes, 4.60%, 06/15/2028 | 675,000 | 671,770 | ||||||
TransDigm UK Holdings PLC, Sr. Unsec. Sub. Gtd. Notes, 6.88%, 05/15/2026(b) | 321,000 | 313,777 | ||||||
TransDigm, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 6.50%, 07/15/2024 | 55,000 | 55,688 | ||||||
6.50%, 05/15/2025 | 201,000 | 201,000 | ||||||
Sr. Unsec. Sub. Notes, 7.50%, 03/15/2027(b) | 5,884,000 | 5,927,542 | ||||||
Triumph Group, Inc., Sr. Unsec. Gtd. Global Notes, 7.75%, 08/15/2025 | 368,000 | 350,520 | ||||||
Sr. Unsec. Sub. Gtd. Global Notes, 4.88%, 04/01/2021 | 188,000 | 186,120 | ||||||
9,099,922 | ||||||||
Agricultural & Farm Machinery-0.01% |
| |||||||
Titan International, Inc., Sr. Sec. Gtd. First Lien Global Notes, 6.50%, 11/30/2023 | 341,000 | 319,688 | ||||||
Agricultural Products-0.01% |
| |||||||
Kernel Holding S.A. (Ukraine), REGS, Sr. Unsec. Gtd. Euro Notes, 8.75%, 01/31/2022(b) | 266,000 | 268,031 | ||||||
Air Freight & Logistics-0.31% |
| |||||||
Adani Abbot Point Terminal Pty Ltd. (Australia), Sr. Sec. Gtd. Notes, 4.45%, 12/15/2022(b) | 13,216,000 | 11,708,084 | ||||||
XPO Logistics, Inc., Sr. Unsec. Gtd. Notes, 6.50%, | 67,000 | 68,424 | ||||||
11,776,508 |
Principal Amount | Value | |||||||
Airlines-3.28% | ||||||||
Air Canada Pass Through Trust (Canada), Series2017-1, Class AA, Sec. Pass Through Ctfs., 3.30%, 01/15/2030(b) | $ | 5,161,397 | $ | 4,961,093 | ||||
American Airlines Pass Through Trust, Series2016-3, Class AA, Sr. Sec. First Lien Pass Through Ctfs., 3.00%, 10/15/2028 | 4,569,366 | 4,333,853 | ||||||
Series2016-3, Class B, Sec. Third Lien Pass Through Ctfs., 3.75%, 10/15/2025 | 4,761,373 | 4,622,679 | ||||||
Series2017-1, Class AA, Sr. Sec. First Lien Pass Through Ctfs., 3.65%, 02/15/2029 | 6,164,100 | 6,068,317 | ||||||
Series2017-1, Class B, Sec. Third Lien Pass Through Ctfs., 4.95%, 02/15/2025 | 4,852,018 | 4,937,545 | ||||||
Series2017-2, Class A, Sec. Second Lien Pass Through Ctfs., 3.60%, 10/15/2029 | 8,932,550 | 8,551,314 | ||||||
Series2017-2, Class B, Sec. Third Lien Pass Through Ctfs., 3.70%, 10/15/2025 | 6,195,141 | 6,020,496 | ||||||
Avianca Holdings S.A./Avianca Leasing LLC/Grupo Taca Holdings Ltd. (Colombia), REGS, Sr. Unsec. Gtd. Euro Notes, 8.38%, 05/10/2020(b) | 8,219,000 | 8,023,799 | ||||||
Delta Air Lines, Inc., Sr. Unsec. Global Notes, 2.88%, 03/13/2020 | 4,744,000 | 4,740,474 | ||||||
2.60%, 12/04/2020 | 8,050,000 | 7,953,932 | ||||||
3.40%, 04/19/2021 | 2,569,000 | 2,566,451 | ||||||
3.63%, 03/15/2022 | 7,899,000 | 7,877,814 | ||||||
3.80%, 04/19/2023 | 4,552,000 | 4,517,782 | ||||||
4.38%, 04/19/2028 | 4,429,000 | 4,261,016 | ||||||
LATAM Airlines Group S.A. Pass Through Trust (Chile), Series2015-1, Class A, Sr. Sec. First Lien Global Pass Through Ctfs., 4.20%, 11/15/2027 | 5,405,927 | 5,252,399 | ||||||
Latam Finance Ltd. (Chile), Sr. Unsec. Gtd. Notes, 7.00%, 03/01/2026(b) | 225,000 | 226,406 | ||||||
Norwegian Air Shuttle ASA Pass Through Trust (Norway), Series2016-1, Class B, Sec. Pass Through Ctfs., 7.50%, 11/10/2023(b) | 15,675,333 | 16,137,756 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Airlines-(continued) | ||||||||
United Airlines Pass Through Trust, Series2018-1, Class A, Sec. Second Lien Pass Through Ctfs., 3.70%, 03/01/2030 | $ | 11,567,000 | $ | 11,222,288 | ||||
Series2018-1, Class AA, Sr. Sec. First Lien Pass Through Ctfs., 3.50%, 03/01/2030 | 11,797,000 | 11,502,076 | ||||||
Series2019-1, Class A, Pass Through Ctfs., 4.55%, 08/25/2031 | 2,290,000 | 2,332,594 | ||||||
US Airways Pass Through Trust, Series2012-1, Class B, Sec. Second Lien Pass Through Ctfs., 8.00%, 04/01/2021 | 6,555 | 6,686 | ||||||
126,116,770 | ||||||||
Alternative Carriers-0.06% |
| |||||||
CenturyLink, Inc., Series S, Sr. Unsec. Notes, 6.45%, 06/15/2021 | 468,000 | 487,305 | ||||||
Series Y, Sr. Unsec. Global Notes, 7.50%, 04/01/2024 | 722,000 | 765,546 | ||||||
Level 3 Financing, Inc., Sr. Unsec. Gtd. Global Notes, 5.38%, 05/01/2025 | 837,000 | 837,000 | ||||||
5.25%, 03/15/2026 | 366,000 | 360,052 | ||||||
2,449,903 | ||||||||
Aluminum-0.11% | ||||||||
Novelis Corp., | 154,000 | 155,492 | ||||||
5.88%, 09/30/2026(b) | 37,000 | 36,168 | ||||||
PT Indonesia Asahan Aluminium (Persero) (Indonesia), Sr. Unsec. Notes, 5.23%, 11/15/2021(b) | 3,530,000 | 3,648,908 | ||||||
Sr. Unsec. Sub. Notes, 5.71%, 11/15/2023(b) | 200,000 | 211,397 | ||||||
4,051,965 | ||||||||
Apparel Retail-0.11% | ||||||||
Hot Topic, Inc., Sr. Sec. Gtd. First Lien Notes, 9.25%, | 226,000 | 227,695 | ||||||
L Brands, Inc., | 3,691,000 | 3,764,820 | ||||||
6.88%, 11/01/2035 | 281,000 | 243,767 | ||||||
6.75%, 07/01/2036 | 22,000 | 18,700 | ||||||
4,254,982 | ||||||||
Apparel, Accessories & Luxury Goods-0.01% |
| |||||||
Hanesbrands, Inc., | 31,000 | 31,121 | ||||||
4.88%, 05/15/2026(b) | 547,000 | 541,530 | ||||||
572,651 |
Principal Amount | Value | |||||||
Asset Management & Custody Banks-0.54% |
| |||||||
Affiliated Managers Group, Inc., | $ | 660,000 | $ | 678,456 | ||||
Apollo Management Holdings L.P., Sr. Unsec. Gtd. Notes, 4.00%, 05/30/2024(b) | 5,598,000 | 5,543,908 | ||||||
Blackstone Holdings Finance Co. LLC, Sr. Unsec. Gtd. Notes, 5.00%, 06/15/2044(b) | 3,581,000 | 3,601,657 | ||||||
Carlyle Finance LLC, | 2,866,000 | 2,760,507 | ||||||
5.65%, 09/15/2048(b) | 7,657,000 | 7,447,414 | ||||||
Prime Security Services Borrower LLC/Prime Finance, Inc., Sec. Gtd. Second Lien Notes, 9.25%, 05/15/2023(b) | 638,000 | 674,366 | ||||||
20,706,308 | ||||||||
Auto Parts & Equipment-0.12% |
| |||||||
Aptiv PLC, Sr. Unsec. Sub. Gtd. Global Notes, 5.40%, 03/15/2049 | 3,647,000 | 3,630,880 | ||||||
Dana, Inc., Sr. Unsec. Notes, 5.50%, 12/15/2024 | 414,000 | 412,447 | ||||||
Delphi Technologies PLC, Sr. Unsec. Gtd. Notes, 5.00%, 10/01/2025(b) | 166,000 | 148,363 | ||||||
Flexi-Van Leasing, Inc., Sec. Second Lien Notes, 10.00%, 02/15/2023(b) | 191,000 | 162,350 | ||||||
Hertz Corp. (The), | 66,000 | 67,650 | ||||||
Sr. Unsec. Gtd. Global Notes, 5.88%, 10/15/2020 | 340,000 | 340,850 | ||||||
4,762,540 | ||||||||
Automobile Manufacturers-3.17% |
| |||||||
Ford Motor Credit Co. LLC, | 5,293,000 | 5,252,686 | ||||||
5.09%, 01/07/2021 | 12,522,000 | 12,760,352 | ||||||
3.81%, 10/12/2021 | 8,681,000 | 8,573,510 | ||||||
5.60%, 01/07/2022 | 7,258,000 | 7,440,552 | ||||||
4.69%, 06/09/2025 | 10,169,000 | 9,612,742 | ||||||
General Motors Co., Sr. Unsec. Global Notes, 4.88%, 10/02/2023 | 370,000 | 382,119 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Automobile Manufacturers-(continued) |
| |||||||
General Motors Financial Co., Inc., Series B, Jr. Unsec. Sub. Global Notes Floating Rate, 6.50%(c)(d) | $ | 12,452,000 | $ | 11,318,557 | ||||
Sr. Unsec. Gtd. Global Floating Rate Notes, 3.65% (3 mo. USD LIBOR + 0.85%), 04/09/2021(d) | 6,385,000 | 6,325,487 | ||||||
Sr. Unsec. Gtd. Notes, 3.15%, 01/15/2020 | 4,124,000 | 4,124,480 | ||||||
Sr. Unsec. Sub. Global Notes, 5.10%, 01/17/2024 | 9,190,000 | 9,416,229 | ||||||
Hyundai Capital America, Sr. Unsec. Notes, 3.95%, 02/01/2022(b) | 11,179,000 | 11,248,052 | ||||||
4.30%, 02/01/2024(b) | 19,392,000 | 19,445,436 | ||||||
J.B. Poindexter & Co., Inc., Sr. Unsec. Bonds, 7.13%, 04/15/2026(b) | 602,000 | 594,475 | ||||||
Toyota Motor Corp. (Japan), Sr. Unsec. Global Bonds, 3.42%, 07/20/2023 | 300,000 | 303,750 | ||||||
Volkswagen Group of America Finance LLC (Germany), Sr. Unsec. Gtd. Floating Rate Notes, 3.46% (3 mo. USD LIBOR + 0.77%), | 6,674,000 | 6,687,129 | ||||||
3.64% (3 mo. USD LIBOR + 0.94%), 11/12/2021(b)(d) | 7,881,000 | 7,890,765 | ||||||
Sr. Unsec. Gtd. Notes, 4.25%, 11/13/2023(b) | 600,000 | 611,310 | ||||||
121,987,631 | ||||||||
Automotive Retail-0.03% | ||||||||
Lithia Motors, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 08/01/2025(b) | 85,000 | 84,469 | ||||||
Murphy Oil USA, Inc., Sr. Unsec. Gtd. Global Notes, 5.63%, 05/01/2027 | 472,000 | 477,900 | ||||||
Penske Automotive Group, Inc., Sr. Unsec. Sub. Gtd. Notes, 5.50%, 05/15/2026 | 584,000 | 575,211 | ||||||
1,137,580 | ||||||||
Brewers-0.10% | ||||||||
Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide Inc. (Belgium), Sr. Unsec. Gtd. Notes, 3.65%, 02/01/2026(b) | 485,000 | 478,977 | ||||||
Anheuser-Busch InBev Worldwide, Inc. (Belgium), Sr. Unsec. Gtd. Global Notes, 5.45%, 01/23/2039 | 3,317,000 | 3,491,587 | ||||||
3,970,564 |
Principal Amount | Value | |||||||
Broadcasting-0.16% | ||||||||
AMC Networks, Inc., Sr. Unsec. Gtd. Global Notes, 5.00%, 04/01/2024 | $ | 155,000 | $ | 154,177 | ||||
4.75%, 08/01/2025 | 44,000 | 42,900 | ||||||
CBS Corp., Sr. Unsec. Gtd. Notes, 3.50%, 01/15/2025 | 275,000 | 268,443 | ||||||
Clear Channel Worldwide Holdings, Inc., Series B, Sr. Unsec. Gtd. Sub. Global Notes, 7.63%, 03/15/2020 | 242,000 | 243,029 | ||||||
Fox Corp., Sr. Unsec. Sub. Gtd. Notes, 5.58%, 01/25/2049(b) | 3,470,000 | 3,678,015 | ||||||
Gray Escrow, Inc., Sr. Unsec. Notes, 7.00%, 05/15/2027(b) | 185,000 | 196,100 | ||||||
Netflix, Inc., Sr. Unsec. Global Notes, 5.75%, 03/01/2024 | 184,000 | 196,046 | ||||||
Sr. Unsec. Notes, 5.88%, 11/15/2028(b) | 901,000 | 940,689 | ||||||
Nexstar Broadcasting, Inc., Sr. Unsec. Gtd. Notes, 5.63%, 08/01/2024(b) | 112,000 | 111,440 | ||||||
Tribune Media Co., Sr. Unsec. Gtd. Global Notes, 5.88%, 07/15/2022 | 123,000 | 125,768 | ||||||
TV Azteca, S.A.B. de C.V. (Mexico), REGS, Sr. Unsec. Gtd. Euro Notes, 8.25%, 08/09/2024(b) | 265,000 | 260,031 | ||||||
6,216,638 | ||||||||
Building Products-0.04% | ||||||||
Owens Corning, Sr. Unsec. Global Notes, 4.20%, 12/01/2024 | 500,000 | 497,656 | ||||||
Standard Industries, Inc., Sr. Unsec. Notes, 6.00%, 10/15/2025(b) | 486,000 | 509,693 | ||||||
5.00%, 02/15/2027(b) | 429,000 | 409,695 | ||||||
1,417,044 | ||||||||
Cable & Satellite-0.96% | ||||||||
Altice Financing S.A. (Luxembourg), Sr. Sec. Gtd. First Lien Bonds, 7.50%, 05/15/2026(b) | 400,000 | 388,000 | ||||||
Sr. Sec. Gtd. First Lien Notes, 6.63%, 02/15/2023(b) | 200,000 | 205,998 | ||||||
Altice Luxembourg S.A. (Luxembourg), Sr. Unsec. Gtd. Notes, 7.75%, 05/15/2022(b) | 440,000 | 438,900 | ||||||
CCO Holdings LLC/CCO Holdings Capital Corp., Sr. Unsec. Global Notes, 5.75%, 09/01/2023 | 245,000 | 250,206 | ||||||
Sr. Unsec. Notes, 5.75%, 02/15/2026(b) | 1,785,000 | 1,854,240 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Cable & Satellite-(continued) | ||||||||
Charter Communications Operating, LLC/Charter Communications Operating Capital Corp., Sr. Sec. Gtd. First Lien Global Notes, 4.46%, 07/23/2022 | $ | 265,000 | $ | 272,022 | ||||
4.91%, 07/23/2025 | 260,000 | 269,602 | ||||||
5.38%, 04/01/2038 | 5,235,000 | 5,072,224 | ||||||
5.38%, 05/01/2047 | 4,585,000 | 4,354,177 | ||||||
Comcast Corp., | 4,479,000 | 4,620,459 | ||||||
4.60%, 10/15/2038 | 5,889,000 | 6,067,138 | ||||||
3.40%, 07/15/2046 | 500,000 | 421,647 | ||||||
Cox Communications, Inc., Sr. Unsec. Notes, 3.35%, 09/15/2026(b) | 4,933,000 | 4,663,297 | ||||||
CSC Holdings, LLC, | 200,000 | 203,500 | ||||||
Sr. Unsec. Notes, 10.88%, 10/15/2025(b) | 500,000 | 581,250 | ||||||
Sr. Unsec. Sub. Notes, 7.75%, 07/15/2025(b) | 395,000 | 422,650 | ||||||
Discovery Communications LLC, | 365,000 | 343,927 | ||||||
DISH DBS Corp., | 387,000 | 395,707 | ||||||
5.88%, 11/15/2024 | 1,757,000 | 1,486,334 | ||||||
Globo Comunicação e Participações S.A. (Brazil), | 267,000 | 261,863 | ||||||
Intelsat Jackson Holdings S.A. (Luxembourg), | 834,000 | 769,365 | ||||||
Sr. Unsec. Gtd. Notes, 8.50%, 10/15/2024(b) | 295,000 | 299,336 | ||||||
Sirius XM Radio, Inc., | 475,000 | 494,000 | ||||||
5.38%, 07/15/2026(b) | 409,000 | 411,556 | ||||||
Telenet Finance Luxembourg Notes S.a r.l. (Belgium), Sr. Sec. First Lien Notes, 5.50%, 03/01/2028(b) | 400,000 | 387,000 | ||||||
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH (Germany), Sr. Sec. Gtd. First Lien Bonds, 5.00%, | 400,000 | 411,500 | ||||||
UPC Holding B.V. (Netherlands), Sr. Sec. First Lien Notes, 5.50%, 01/15/2028(b) | 200,000 | 206,000 |
Principal Amount | Value | |||||||
Cable & Satellite-(continued) | ||||||||
Virgin Media Bristol LLC (United Kingdom), Sr. Sec. Gtd. First Lien Notes, 5.50%, 08/15/2026(b) | $ | 700,000 | $ | 698,250 | ||||
Virgin Media Finance PLC (United Kingdom), Sr. Unsec. Gtd. Notes, 6.00%, 10/15/2024(b) | 200,000 | 206,000 | ||||||
VTR Finance B.V. (Chile), Sr. Sec. First Lien Notes, 6.88%, 01/15/2024(b) | 224,000 | 231,000 | ||||||
Ziggo B.V. (Netherlands), Sr. Sec. Gtd. First Lien Notes, 5.50%, 01/15/2027(b) | 250,000 | 241,875 | ||||||
36,929,023 | ||||||||
Casinos & Gaming-0.16% | ||||||||
Boyd Gaming Corp., | 163,000 | 170,539 | ||||||
6.00%, 08/15/2026 | 126,000 | 129,701 | ||||||
MGM Resorts International, | 110,000 | 121,000 | ||||||
6.00%, 03/15/2023 | 485,000 | 508,644 | ||||||
4.63%, 09/01/2026 | 350,000 | 334,250 | ||||||
Sands China Ltd. (Macau), Sr. Unsec. Global Notes, 5.40%, 08/08/2028 | 3,670,000 | 3,733,979 | ||||||
Scientific Games International, Inc., Sr. Unsec. Gtd. Global Notes, 10.00%, 12/01/2022 | 547,000 | 577,085 | ||||||
Studio City Finance Ltd. (Macau), Sr. Unsec. Gtd. Notes, 7.25%, 02/11/2024(b) | 200,000 | 203,980 | ||||||
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., Sr. Unsec. Gtd. Notes, 5.50%, 03/01/2025(b) | 436,000 | 435,586 | ||||||
6,214,764 | ||||||||
Coal & Consumable Fuels-0.01% |
| |||||||
SunCoke Energy Partners L.P./SunCoke Energy Partners Finance Corp., Sr. Unsec. Gtd. Notes, 7.50%, 06/15/2025(b) | 547,000 | 557,940 | ||||||
Commodity Chemicals-0.03% |
| |||||||
Alpek SAB de C.V. (Mexico), REGS, Sr. Unsec. Gtd. Euro Notes, 4.50%, 11/20/2022(b) | 300,000 | 304,500 | ||||||
Braskem Finance Ltd. (Brazil), REGS, Sr. Unsec. Gtd. Euro Notes, 7.38%(b)(c) | 186,000 | 187,862 | ||||||
Koppers, Inc., Sr. Unsec. Gtd. Notes, 6.00%, 02/15/2025(b) | 159,000 | 139,920 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Commodity Chemicals-(continued) |
| |||||||
Nufarm Australia Ltd./Nufarm Americas, Inc. (Australia), Sr. Unsec. Gtd. Notes, 5.75%, 04/30/2026(b) | $ | 170,000 | $ | 159,278 | ||||
Valvoline, Inc., Sr. Unsec. Gtd. Global Notes, 5.50%, 07/15/2024 | 243,000 | 244,519 | ||||||
1,036,079 | ||||||||
Communications Equipment-0.03% |
| |||||||
CommScope Technologies LLC, Sr. Unsec. Gtd. Notes, 6.00%, 06/15/2025(b) | 446,000 | 422,585 | ||||||
Hughes Satellite Systems Corp., Sr. Sec. Gtd. First Lien Global Notes, 5.25%, 08/01/2026 | 614,000 | 602,487 | ||||||
Sr. Unsec. Gtd. Global Notes, 7.63%, 06/15/2021 | 249,000 | 267,675 | ||||||
1,292,747 | ||||||||
Construction & Engineering-0.00% |
| |||||||
AECOM, Sr. Unsec. Gtd. Global Notes, 5.13%, 03/15/2027 | 97,000 | 92,514 | ||||||
William Lyon Homes, Inc., Sr. Unsec. Gtd. Global Notes, 6.00%, 09/01/2023 | 79,000 | 73,865 | ||||||
166,379 | ||||||||
Construction Machinery & Heavy Trucks-0.22% |
| |||||||
Meritor, Inc., Sr. Unsec. Gtd. Notes, 6.25%, 02/15/2024 | 209,000 | 213,441 | ||||||
Oshkosh Corp., Sr. Unsec. Gtd. Global Notes, 5.38%, 03/01/2025 | 179,000 | 182,133 | ||||||
Terex Corp., Sr. Unsec. Gtd. Notes, 5.63%, 02/01/2025(b) | 546,000 | 531,668 | ||||||
Wabtec Corp., Sr. Unsec. Gtd. Global Notes, 4.15%, 03/15/2024 | 4,879,000 | 4,875,921 | ||||||
4.70%, 09/15/2028 | 2,597,000 | 2,582,305 | ||||||
8,385,468 | ||||||||
Construction Materials-0.10% |
| |||||||
CRH America Finance, Inc. (Ireland), Sr. Unsec. Gtd. Notes, 3.95%, 04/04/2028(b) | 4,106,000 | 3,935,337 | ||||||
Consumer Finance-0.57% | ||||||||
Ally Financial, Inc., Sr. Unsec. Global Notes, 4.13%, 03/30/2020 | 4,449,000 | 4,482,367 | ||||||
5.13%, 09/30/2024 | 919,000 | 967,248 | ||||||
4.63%, 03/30/2025 | 750,000 | 766,650 | ||||||
Sr. Unsec. Gtd. Global Notes, 8.00%, 03/15/2020 | 145,000 | 152,069 | ||||||
Capital One Financial Corp., Sr. Unsec. Global Notes, 3.75%, 03/09/2027 | 5,947,000 | 5,710,392 |
Principal Amount | Value | |||||||
Consumer Finance-(continued) |
| |||||||
Discover Financial Services, Class C, Jr. Unsec. Sub. Global Notes, 5.50%(c)(d) | $ | 132,000 | $ | 124,256 | ||||
Navient Corp., Sr. Unsec. Medium-Term Notes, 8.00%, 03/25/2020 | 235,000 | 246,005 | ||||||
7.25%, 01/25/2022 | 870,000 | 915,675 | ||||||
Sr. Unsec. Unsub. Global Notes, 7.25%, 09/25/2023 | 683,000 | 706,905 | ||||||
Synchrony Financial, Sr. Unsec. Global Notes, 4.50%, 07/23/2025 | 5,120,000 | 5,003,041 | ||||||
Unifin Financiera, S.A.B. de C.V., SOFOM, E.N.R. (Mexico), Sr. Unsec. Notes, 7.38%, 02/12/2026(b) | 3,013,000 | 2,728,271 | ||||||
21,802,879 | ||||||||
Copper-0.73% | ||||||||
First Quantum Minerals Ltd. (Zambia), Sr. Unsec. Gtd. Notes, | 200,000 | 203,675 | ||||||
7.50%, 04/01/2025(b) | 800,000 | 775,000 | ||||||
Freeport-McMoRan Inc., Sr. Unsec. Gtd. Global Notes, | 24,790,000 | 24,859,412 | ||||||
5.40%, 11/14/2034 | 1,706,000 | 1,565,255 | ||||||
Southern Copper Corp. (Peru), Sr. Unsec. Global Notes, 7.50%, 07/27/2035 | 200,000 | 246,500 | ||||||
Taseko Mines Ltd. (Canada), Sr. Sec. Gtd. First Lien Notes, 8.75%, 06/15/2022(b) | 333,000 | 311,355 | ||||||
27,961,197 | ||||||||
Data Processing & Outsourced Services-0.14% |
| |||||||
Fidelity National Information Services, Inc., Sr. Unsec. Global Notes, 4.50%, 08/15/2046 | 4,764,000 | 4,335,433 | ||||||
First Data Corp., Sec. Gtd. Second Lien Notes, 5.75%, 01/15/2024(b) | 953,000 | 987,155 | ||||||
Sr. Sec. Gtd. First Lien Notes, 5.00%, 01/15/2024(b) | 80,000 | 82,151 | ||||||
5,404,739 | ||||||||
Department Stores-0.47% |
| |||||||
Macy’s Retail Holdings, Inc., Sr. Unsec. Gtd. Notes, 4.38%, 09/01/2023 | 17,966,000 | 17,694,101 | ||||||
SACI Falabella (Chile), Sr. Unsec. Notes, 3.75%, 10/30/2027(b) | 200,000 | 190,000 | ||||||
17,884,101 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Distillers & Vintners-0.13% | ||||||||
Constellation Brands, Inc., Sr. Unsec. Gtd. Floating Rate Global Notes, 3.38% (3 mo. USD LIBOR + 0.70%), 11/15/2021(d) | $ | 5,132,000 | $ | 5,112,082 | ||||
Diversified Banks-5.95% | ||||||||
ABN AMRO Bank N.V. (Netherlands), Sr. Unsec. Notes, 2.45%, 06/04/2020(b) | 6,244,000 | 6,207,248 | ||||||
Africa Finance Corp. (Supranational), REGS, Sr. Unsec. Medium-Term Euro Notes, 4.38%, 04/29/2020(b) | 320,000 | 321,315 | ||||||
Australia and New Zealand Banking Group Ltd. (Australia), Jr. Unsec. Sub. Notes, | 10,519,000 | 11,060,413 | ||||||
Banco de Bogotá S.A. (Colombia), Sr. Unsec. Notes, 4.38%, 08/03/2027(b) | 400,000 | 388,104 | ||||||
Banco del Estado de Chile (Chile), REGS, Sr. Unsec. Euro Notes, 4.13%, 10/07/2020(b) | 300,000 | 303,615 | ||||||
Sr. Unsec. Notes, 2.67%, 01/08/2021(b) | 7,638,000 | 7,525,969 | ||||||
Banco do Brasil S.A. (Brazil), REGS, Jr. Unsec. Euro Notes, 8.50%(b)(c)(d) | 5,349,000 | 5,698,076 | ||||||
Banco Safra S.A. (Brazil), Sr. Unsec. Notes, 4.13%, 02/08/2023(b) | 250,000 | 248,437 | ||||||
Bank of America Corp., Unsec. Sub. Medium-Term Notes, 4.20%, 08/26/2024 | 4,663,000 | 4,756,360 | ||||||
Barclays Bank PLC (United Kingdom), Unsec. Sub. Global Notes, 7.63%, 11/21/2022 | 200,000 | 215,917 | ||||||
Barclays PLC (United Kingdom), Jr. Unsec. Sub. Global Bonds, 6.63%(c)(d) | 7,410,000 | 7,401,716 | ||||||
REGS, Jr. Unsec. Sub. Euro Bonds, 7.88%(b)(c)(d) | 200,000 | 210,252 | ||||||
Unsec. Sub. Global Notes, 4.84%, 05/09/2028 | 2,345,000 | 2,264,797 | ||||||
BBVA Bancomer S.A. (Mexico), Jr. Unsec. Sub. Notes, 7.25%, 04/22/2020(b) | 5,605,000 | 5,808,237 | ||||||
Sr. Unsec. Notes, 4.38%, 04/10/2024(b) | 1,385,000 | 1,390,194 | ||||||
BNP Paribas S.A. (France), Sr. Unsec. Notes, 2.38%, 05/21/2020 | 6,282,000 | 6,250,291 | ||||||
Unsec. Sub. Floating Rate Notes, 4.38% (5 yr. U.S. Swap Rate + 1.48%), 03/01/2033(b)(d) | 11,980,000 | 11,490,555 | ||||||
BPCE S.A. (France), Jr. Unsec. Sub. Bonds, 12.50%(b)(c)(d) | 3,375,000 | 3,548,846 |
Principal Amount | Value | |||||||
Diversified Banks-(continued) | ||||||||
Citigroup Inc., Series A, Jr. Unsec. Sub. Global Notes, 5.95%(c)(d) | $ | 272,000 | $ | 277,855 | ||||
Series Q, Jr. Unsec. Sub. Global Notes, 5.95%(c)(d) | 1,480,000 | 1,499,011 | ||||||
Series T, Jr. Unsec. Sub. Global Notes, 6.25%(c)(d) | 6,669,000 | 7,016,655 | ||||||
Unsec. Sub. Global Notes, 5.50%, 09/13/2025 | 6,552,000 | 7,083,526 | ||||||
Unsec. Sub. Notes, 4.45%, 09/29/2027 | 9,614,000 | 9,656,834 | ||||||
Cooperatieve Rabobank UA (Netherlands), Jr. Unsec. Sub. Notes, 11.00%(b)(c)(d) | 16,376,000 | 16,805,870 | ||||||
Crédit Agricole S.A. (France), REGS, Jr. Unsec. Sub. Euro Notes, 8.13%(b)(c)(d) | 202,000 | 225,741 | ||||||
Development Bank of Kazakhstan JSC (Kazakhstan), REGS, Sr. Unsec. Euro Notes, 4.13%, 12/10/2022(b) | 300,000 | 302,058 | ||||||
DIB Sukuk Ltd. (United Arab Emirates), REGS, Sr. Unsec. Euro Bonds, 3.66%, | 200,000 | 198,850 | ||||||
Discover Bank, Sr. Unsec. Global Bonds, 3.45%, 07/27/2026 | 335,000 | 317,097 | ||||||
Dresdner Funding Trust I (Germany), REGS, Jr. Unsec. Sub. Euro Notes, 8.15%, 06/30/2031(b) | 241,000 | 300,437 | ||||||
Export-Import Bank of India (India), REGS, Sr. Unsec. Euro Bonds, 3.38%, 08/05/2026(b) | 200,000 | 188,206 | ||||||
REGS, Sr. Unsec. Medium-Term Euro Notes, 3.88%, 10/02/2019(b) | 630,000 | 631,484 | ||||||
3.13%, 07/20/2021(b) | 325,000 | 320,834 | ||||||
Global Bank Corp. (Panama), Sr. Unsec. Notes, 4.50%, | 7,642,000 | 7,701,608 | ||||||
HSBC Holdings PLC (United Kingdom), Jr. Unsec. Sub. Global Floating Rate Bonds, 6.00% (5 yr. U.S. Swap Rate + 3.74%)(c)(d) | 10,561,000 | 10,299,351 | ||||||
Sr. Unsec. Global Floating Rate Notes, 3.68% (3 mo. USD LIBOR + 1.00%), 05/18/2024(d) | 6,489,000 | 6,432,791 | ||||||
Unsec. Sub. Global Notes, 4.38%, 11/23/2026 | 570,000 | 573,895 | ||||||
Industrial Senior Trust (Guatemala), REGS, Sr. Unsec. Gtd. Euro Notes, 5.50%, 11/01/2022(b) | 500,000 | 505,000 | ||||||
ING Bank N.V. (Netherlands), Sr. Unsec. Notes, 2.75%, | 5,088,000 | 5,056,747 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Diversified Banks-(continued) |
| |||||||
ING Groep N.V. (Netherlands), Jr. Unsec. Sub. Global Notes, 6.50%(c)(d) | $ | 200,000 | $ | 199,800 | ||||
REGS, Jr. Unsec. Sub. Euro Bonds, 6.88%(b)(c)(d) | 200,000 | 208,464 | ||||||
JPMorgan Chase & Co., Series I, Jr. Unsec. Sub. Global Floating Rate Notes, 6.22% (3 mo. USD LIBOR | 8,921,000 | 8,976,533 | ||||||
Series W, Jr. Unsec. Sub. Global Floating Rate Notes, 3.68% (3 mo. USD LIBOR + 1.00%), 05/15/2047(d) | 11,797,000 | 9,337,031 | ||||||
Sr. Unsec. Floating Rate Global Notes, 3.66% (3 mo. USD LIBOR + 0.89%), 07/23/2024(d) | 14,136,000 | 14,123,126 | ||||||
Sr. Unsec. Global Floating Rate Notes, 3.78% (3 mo. USD LIBOR + 1.34%), 02/01/2028(d) | 5,425,000 | 5,421,195 | ||||||
Sr. Unsec. Medium-Term Global Bonds, 2.30%, 08/15/2021 | 8,152,000 | 8,004,225 | ||||||
Unsec. Sub. Global Notes, 3.63%, 12/01/2027 | 5,110,000 | 4,947,504 | ||||||
Lloyds Banking Group PLC (United Kingdom), Unsec. Global Notes, 4.65%, 03/24/2026 | 500,000 | 493,779 | ||||||
Multibank, Inc. (Panama), Sr. Unsec. Notes, 4.38%, 11/09/2022(b) | 200,000 | 199,000 | ||||||
Nordea Bank AB (Finland), Jr. Unsec. Sub. Notes, 5.50%(b)(c)(d) | 3,560,000 | 3,555,550 | ||||||
QNB Finance Ltd. (Qatar), REGS, Sr. Unsec. Gtd. Medium-Term Euro Notes, 2.13%, 09/07/2021(b) | 340,000 | 330,458 | ||||||
Royal Bank of Scotland Group PLC (The) (United Kingdom), Jr. Unsec. Sub. Bonds, | 425,000 | 436,050 | ||||||
Jr. Unsec. Sub. Notes, | 200,000 | 214,960 | ||||||
Sr. Unsec. Floating Rate Notes, 3.50% (3 mo. USD LIBOR + 1.48%), | 430,000 | 424,265 | ||||||
Societe Generale S.A. (France), Jr. Unsec. Sub. Floating Rate Notes, 7.38% (5 yr. U.S. Swap Rate + 6.23%)(b)(c)(d) | 2,988,000 | 3,100,050 | ||||||
REGS, Jr. Unsec. Sub. Euro Notes, 7.38%(b)(c)(d) | 202,000 | 209,575 |
Principal Amount | Value | |||||||
Diversified Banks-(continued) | ||||||||
Standard Chartered PLC (United Kingdom), Jr. Unsec. Sub. Floating Rate Notes, 7.75% (5 yr. U.S. Swap Rate + 5.72%)(b)(c)(d) | $ | 5,720,000 | $ | 6,000,137 | ||||
REGS, Jr. Unsec. Sub. Euro Bonds, 7.50%(b)(c)(d) | 200,000 | 209,500 | ||||||
Sr. Unsec. Floating Rate Notes, 3.91% (3 mo. USD LIBOR + 1.15%), | 3,722,000 | 3,717,563 | ||||||
Wells Fargo & Co., Unsec. Sub. Global Notes, 5.38%, 11/02/2043 | 7,491,000 | 8,161,276 | ||||||
228,754,233 | ||||||||
Diversified Capital Markets-0.14% |
| |||||||
Credit Suisse Group AG (Switzerland), Jr. Unsec. Sub. Notes, 7.50%(b)(c)(d) | 305,000 | 327,033 | ||||||
REGS, Jr. Unsec. Sub. Euro Bonds, 7.13%(b)(c)(d) | 201,000 | 208,454 | ||||||
Credit Suisse Group Funding (Guernsey) Ltd. (Switzerland), Sr. Unsec. Gtd. Global Notes, 3.75%, 03/26/2025 | 725,000 | 717,176 | ||||||
UBS AG (Switzerland), Sr. Unsec. Medium-Term Global Bonds, 4.88%, 08/04/2020 | 3,987,000 | 4,089,882 | ||||||
5,342,545 | ||||||||
Diversified Chemicals-0.67% |
| |||||||
Chemours Co. (The), Sr. Unsec. Gtd. Global Notes, 7.00%, 05/15/2025 | 75,000 | 78,375 | ||||||
CNAC (HK) Finbridge Co. Ltd. (China), REGS, Sr. Unsec. Gtd. Euro Bonds, 3.00%, 07/19/2020(b) | 300,000 | 297,889 | ||||||
Dow Chemical Co. (The), Sr. Unsec. Notes, 4.55%, 11/30/2025(b) | 500,000 | 517,383 | ||||||
OCP S.A. (Morocco), REGS, Sr. Unsec. Euro Notes, 4.50%, 10/22/2025(b) | 700,000 | 696,054 | ||||||
Sr. Unsec. Notes, 4.50%, 10/22/2025(b) | 1,940,000 | 1,929,064 | ||||||
Office Cherifien des Phosphates (Morocco), REGS, Sr. Unsec. Euro Notes, 6.88%, 04/25/2044(b) | 400,000 | 437,731 | ||||||
SABIC Capital II B.V. (Saudi Arabia), Sr. Unsec. Gtd. Bonds, 4.00%, 10/10/2023(b) | 200,000 | 202,975 | ||||||
4.50%, 10/10/2028(b) | 200,000 | 206,000 | ||||||
Sasol Financing USA LLC (South Africa), Sr. Unsec. Gtd. Global Notes, 5.88%, 03/27/2024 | 13,274,000 | 13,769,774 | ||||||
6.50%, 09/27/2028 | 7,116,000 | 7,487,857 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Diversified Chemicals-(continued) |
| |||||||
Trinseo Materials Operating S.C.A./Trinseo Materials Finance, Inc., Sr. Unsec. Gtd. Notes, 5.38%, 09/01/2025(b) | $ | 97,000 | $ | 91,665 | ||||
25,714,767 | ||||||||
Diversified Metals & Mining-0.06% |
| |||||||
Corp. Nacional del Cobre de Chile (Chile), Sr. Unsec. Notes, 3.63%, 08/01/2027(b) | 200,000 | 197,736 | ||||||
Hudbay Minerals, Inc. (Canada), Sr. Unsec. Gtd. Notes, 7.63%, 01/15/2025(b) | 448,000 | 466,480 | ||||||
Minmetals Bounteous Finance (BVI) Ltd. (China), REGS, Sr. Unsec. Gtd. Euro Bonds, 3.50%, 07/30/2020(b) | 300,000 | 299,650 | ||||||
3.13%, 07/27/2021(b) | 300,000 | 295,569 | ||||||
MMC Norilsk Nickel OJSC via MMC Finance DAC (Russia), Sr. Unsec. Notes, 6.63%, | 295,000 | 313,948 | ||||||
Teck Resources Ltd. (Canada), Sr. Unsec. Notes, 6.13%, 10/01/2035 | 603,000 | 638,252 | ||||||
Vedanta Resources PLC (India), Sr. Unsec. Notes, 6.38%, | 262,000 | 248,546 | ||||||
2,460,181 | ||||||||
Diversified REITs-0.35% | ||||||||
STORE Capital Corp., Sr. Unsec. Global Notes, 4.63%, 03/15/2029 | 5,290,000 | 5,232,173 | ||||||
Trust F/1401 (Mexico), Sr. Unsec. Notes, 5.25%, 01/30/2026(b) | 8,353,000 | 8,311,319 | ||||||
13,543,492 | ||||||||
Electric Utilities-0.17% | ||||||||
Adani Transmission Ltd. (India), Sr. Sec. First Lien Notes, 4.00%, 08/03/2026(b) | 200,000 | 179,437 | ||||||
CLP Power Hong Kong Financing Ltd. (Hong Kong), REGS, Sr. Unsec. Gtd. Medium-Term Euro Notes, 3.13%, 05/06/2025(b) | 200,000 | 194,844 | ||||||
Electricite de France S.A. (France), Sr. Unsec. Notes, 4.88%, 09/21/2038(b) | 550,000 | 542,948 | ||||||
Eskom Holdings SOC Ltd. (South Africa), Sr. Unsec. Gtd. Notes, 6.35%, 08/10/2028(b) | 222,000 | 228,033 | ||||||
Israel Electric Corp. Ltd. (The) (Israel), REGS, Sr. Sec. Medium-Term Global Notes, 4.25%, 08/14/2028(b) | 200,000 | 198,030 |
Principal Amount | Value | |||||||
Electric Utilities-(continued) |
| |||||||
Korea East-West Power Co. Ltd. (South Korea), Sr. Unsec. Notes, 3.88%, 07/19/2023(b) | $ | 200,000 | $ | 204,060 | ||||
Korea Hydro & Nuclear Power Co., Ltd. (South Korea), REGS, Sr. Unsec. Medium-Term Euro Notes, 3.00%, 09/19/2022(b) | 200,000 | 198,585 | ||||||
Sr. Unsec. Notes, 3.75%, 07/25/2023(b) | 200,000 | 203,765 | ||||||
Perusahaan Listrik Negara PT (Indonesia), REGS, Sr. Unsec. Medium-Term Euro Notes, 5.45%, 05/21/2028(b) | 200,000 | 209,112 | ||||||
Southern Co. (The), Series B, Jr. Unsec. Sub. Global Floating Rate Notes, 5.50% (3 mo. USD LIBOR + 3.63%), 03/15/2057(d) | 3,932,000 | 3,955,188 | ||||||
State Grid Overseas Investment (2016) Ltd. (China), Sr. Unsec. Gtd. | 200,000 | 194,370 | ||||||
Trinidad Generation Unlimited (Trinidad), REGS, Sr. Unsec. Euro Notes, 5.25%, | 400,000 | 388,004 | ||||||
6,696,376 | ||||||||
Electrical Components & Equipment-0.01% |
| |||||||
EnerSys, Sr. Unsec. Gtd. Notes, 5.00%, 04/30/2023(b) | 269,000 | 269,000 | ||||||
Electronic Equipment & Instruments-0.01% |
| |||||||
Itron, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 01/15/2026(b) | 266,000 | 259,350 | ||||||
Electronic Manufacturing Services-0.01% |
| |||||||
Jabil, Inc., Sr. Unsec. Global Notes, 3.95%, 01/12/2028 | 280,000 | 252,504 | ||||||
Environmental & Facilities Services-0.03% |
| |||||||
Core & Main L.P., Sr. Unsec. Notes, 6.13%, 08/15/2025(b) | 359,000 | 347,332 | ||||||
Hulk Finance Corp. (Canada), Sr. Unsec. Notes, 7.00%, | 654,000 | 622,935 | ||||||
Waste Pro USA, Inc., Sr. Unsec. Notes, 5.50%, 02/15/2026(b) | 245,000 | 238,875 | ||||||
1,209,142 | ||||||||
Fertilizers & Agricultural Chemicals-0.01% |
| |||||||
OCI N.V. (Netherlands), Sr. Sec. Gtd. | 211,000 | 219,176 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Financial Exchanges & Data-0.02% |
| |||||||
Moody’s Corp., Sr. Unsec. Global Notes, 4.88%, 02/15/2024 | $ | 700,000 | $ | 740,892 | ||||
MSCI, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 11/15/2024(b) | 175,000 | 180,250 | ||||||
921,142 | ||||||||
Food Distributors-0.01% | ||||||||
US Foods, Inc., Sr. Unsec. Gtd. Notes, 5.88%, 06/15/2024(b) | 365,000 | 373,771 | ||||||
Food Retail-0.01% | ||||||||
Albertsons Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC, Sr. Unsec. Gtd. Global Notes, 6.63%, 06/15/2024 | 513,000 | 515,565 | ||||||
Gas Utilities-0.03% | ||||||||
AmeriGas Partners, L.P./AmeriGas Finance Corp., Sr. Unsec. Global Notes, 5.63%, 05/20/2024 | 124,000 | 125,860 | ||||||
5.88%, 08/20/2026 | 298,000 | 300,146 | ||||||
Ferrellgas L.P./Ferrellgas Finance Corp., Sr. Unsec. Global Notes, 6.50%, 05/01/2021 | 221,000 | 198,900 | ||||||
Sr. Unsec. Gtd. Global Notes, 6.75%, 06/15/2023 | 81,000 | 72,900 | ||||||
Suburban Propane Partners, L.P./Suburban Energy Finance Corp., Sr. Unsec. Global Notes, 5.50%, 06/01/2024 | 631,000 | 626,267 | ||||||
1,324,073 | ||||||||
General Merchandise Stores-0.01% |
| |||||||
Dollar Tree, Inc., Sr. Unsec. Global Notes, 3.70%, 05/15/2023 | 250,000 | 248,089 | ||||||
4.00%, 05/15/2025 | 250,000 | 245,718 | ||||||
493,807 | ||||||||
Health Care Distributors-0.02% |
| |||||||
AmerisourceBergen Corp., Sr. Unsec. Global Notes, 4.30%, 12/15/2047 | 770,000 | 672,724 | ||||||
Health Care Equipment-0.24% |
| |||||||
Hill-Rom Holdings, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 02/15/2025(b) | 472,000 | 472,000 | ||||||
Teleflex Inc., Sr. Unsec. Gtd. Global Notes, 4.88%, 06/01/2026 | 39,000 | 39,731 | ||||||
4.63%, 11/15/2027 | 385,000 | 383,583 |
Principal Amount | Value | |||||||
Health Care Equipment-(continued) |
| |||||||
Zimmer Biomet Holdings, Inc., Sr. Unsec. Global Floating Rate Notes, 3.55% (3 mo. USD LIBOR + 0.75%), 03/19/2021(d) | $ | 8,322,000 | $ | 8,289,479 | ||||
9,184,793 | ||||||||
Health Care Facilities-0.11% |
| |||||||
Acadia Healthcare Co., Inc., Sr. Unsec. Gtd. Global Notes, 6.50%, 03/01/2024 | 63,000 | 63,000 | ||||||
Encompass Health Corp., Sr. Unsec. Gtd. Global Notes, 5.75%, 09/15/2025 | 475,000 | 482,125 | ||||||
HCA Healthcare, Inc., Sr. Unsec. Notes, 6.25%, 02/15/2021 | 130,000 | 136,544 | ||||||
HCA, Inc., Sr. Sec. Gtd. First Lien Notes, 5.25%, 04/15/2025 | 987,000 | 1,047,280 | ||||||
5.50%, 06/15/2047 | 939,000 | 970,298 | ||||||
Sr. Unsec. Gtd. Notes, 5.38%, 02/01/2025 | 130,000 | 135,160 | ||||||
5.88%, 02/15/2026 | 444,000 | 470,085 | ||||||
5.38%, 09/01/2026 | 123,000 | 126,610 | ||||||
Tenet Healthcare Corp., Sr. Sec. Gtd. First Lien Global Notes, 6.00%, 10/01/2020 | 180,000 | 186,300 | ||||||
Sr. Unsec. Global Notes, 8.13%, 04/01/2022 | 390,000 | 417,787 | ||||||
6.75%, 06/15/2023 | 117,000 | 120,364 | ||||||
4,155,553 | ||||||||
Health Care REITs-0.33% | ||||||||
HCP, Inc., Sr. Unsec. Global Notes, 4.00%, 12/01/2022 | 4,586,000 | 4,658,964 | ||||||
4.25%, 11/15/2023 | 4,598,000 | 4,701,931 | ||||||
MPT Operating Partnership L.P./MPT Finance Corp., Sr. Unsec. Gtd. Global Notes, 5.00%, 10/15/2027 | 815,000 | 810,925 | ||||||
Physicians Realty L.P., Sr. Unsec. Gtd. Global Notes, 4.30%, 03/15/2027 | 325,000 | 317,117 | ||||||
Senior Housing Properties Trust, Sr. Unsec. Notes, 6.75%, 12/15/2021 | 1,942,000 | 2,030,153 | ||||||
Welltower Inc., Sr. Unsec. Notes, 5.25%, 01/15/2022 | 300,000 | 313,996 | ||||||
12,833,086 | ||||||||
Health Care Services-0.94% |
| |||||||
AMN Healthcare, Inc., Sr. Unsec. Gtd. | 138,000 | 136,620 | ||||||
Community Health Systems, Inc., Sr. Sec. Notes, 8.00%, 03/15/2026(b) | 301,000 | 297,036 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Health Care Services-(continued) |
| |||||||
CVS Health Corp., Sr. Unsec. Global Notes, 4.10%, 03/25/2025 | $ | 920,000 | $ | 933,528 | ||||
DaVita, Inc., Sr. Unsec. Gtd. Global Notes, 5.00%, 05/01/2025 | 111,000 | 107,498 | ||||||
Eagle Holding Co. II, LLC, Sr. Unsec. PIK Notes, 8.38% PIK Rate, 7.63% Cash Rate, 05/15/2022(b)(e) | 184,000 | 184,920 | ||||||
Halfmoon Parent, Inc., Sr. Sec. Floating Rate Notes, 3.68% (3 mo. USD LIBOR + 0.89%), 07/15/2023(b)(d) | 10,138,000 | 10,083,032 | ||||||
Sr. Sec. Notes, 3.40%, 09/17/2021(b) | 8,569,000 | 8,619,377 | ||||||
3.75%, 07/15/2023(b) | 12,587,000 | 12,747,993 | ||||||
4.13%, 11/15/2025(b) | 900,000 | 914,405 | ||||||
Heartland Dental, LLC, Sr. Unsec. Notes, 8.50%, 05/01/2026(b) | 414,000 | 380,880 | ||||||
MEDNAX, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 12/01/2023(b) | 253,000 | 256,479 | ||||||
Sr. Unsec. Notes, 6.25%, 01/15/2027(b) | 534,000 | 538,299 | ||||||
MPH Acquisition Holdings LLC, Sr. Unsec. Gtd. Notes, 7.13%, 06/01/2024(b) | 319,000 | 318,601 | ||||||
Surgery Center Holdings, Inc., Sr. Unsec. Gtd. Notes, 8.88%, 04/15/2021(b) | 253,000 | 258,692 | ||||||
6.75%, 07/01/2025(b) | 81,000 | 74,115 | ||||||
Team Health Holdings, Inc., Sr. Unsec. Gtd. Notes, 6.38%, 02/01/2025(b) | 160,000 | 127,800 | ||||||
35,979,275 | ||||||||
Home Improvement Retail-0.01% |
| |||||||
Hillman Group, Inc. (The), Sr. Unsec. Gtd. Notes, 6.38%, 07/15/2022(b) | 265,000 | 229,225 | ||||||
Homebuilding-0.50% | ||||||||
Ashton Woods USA LLC/Ashton Woods Finance Co., Sr. Unsec. Notes, 6.88%, 02/15/2021(b) | 157,000 | 151,505 | ||||||
Beazer Homes USA, Inc., Sr. Unsec. Gtd. Global Notes, 8.75%, 03/15/2022 | 145,000 | 150,981 | ||||||
6.75%, 03/15/2025 | 566,000 | 529,917 | ||||||
5.88%, 10/15/2027 | 31,000 | 27,241 | ||||||
KB Home, Sr. Unsec. Gtd. Notes, 8.00%, 03/15/2020 | 148,000 | 154,845 |
Principal Amount | Value | |||||||
Homebuilding-(continued) | ||||||||
Lennar Corp., Sr. Unsec. Gtd. Global Notes, 8.38%, 01/15/2021 | $ | 40,000 | $ | 43,350 | ||||
5.38%, 10/01/2022 | 157,000 | 162,299 | ||||||
4.75%, 11/15/2022 | 310,000 | 318,041 | ||||||
5.25%, 06/01/2026 | 582,000 | 586,365 | ||||||
MDC Holdings, Inc., Sr. Unsec. Gtd. Notes, 6.00%, 01/15/2043 | 19,236,000 | 16,446,780 | ||||||
Meritage Homes Corp., Sr. Unsec. Gtd. Global Notes, 7.15%, 04/15/2020 | 55,000 | 56,994 | ||||||
6.00%, 06/01/2025 | 83,000 | 85,698 | ||||||
SRS Distribution, Inc., Sr. Unsec. Gtd. Notes, 8.25%, | 175,000 | 171,938 | ||||||
Taylor Morrison Communities, Inc./Taylor Morrison Holdings II, Inc., Sr. Unsec. Gtd. Notes, 5.88%, 04/15/2023(b) | 463,000 | 464,157 | ||||||
19,350,111 | ||||||||
Hotel & Resort REITs-0.07% |
| |||||||
Hospitality Properties Trust, Sr. Unsec. Notes, 4.95%, 02/15/2027 | 2,247,000 | 2,182,963 | ||||||
Host Hotels & Resorts L.P., Series F, Sr. Unsec. Global Notes, 4.50%, 02/01/2026 | 620,000 | 617,325 | ||||||
2,800,288 | ||||||||
Hotels, Resorts & Cruise Lines-0.23% |
| |||||||
Choice Hotels International, Inc., Sr. Unsec. Gtd. Notes, 5.75%, 07/01/2022 | 290,000 | 307,266 | ||||||
Royal Caribbean Cruises Ltd., Sr. Unsec. Global Notes, 3.70%, 03/15/2028 | 9,079,000 | 8,497,756 | ||||||
8,805,022 | ||||||||
Household Products-0.38% |
| |||||||
Controladora Mabe S.A. de C.V. (Mexico), Sr. Unsec. Gtd. Notes, 5.60%, 10/23/2028(b) | 225,000 | 223,594 | ||||||
Reynolds Group Holdings, Inc., Sr. Sec. Gtd. First Lien Global Notes, 5.75%, 10/15/2020 | 13,120,749 | 13,163,392 | ||||||
Reynolds Group Issuer, Inc./LLC, Sr. Sec. Gtd. First Lien Notes, 5.13%, 07/15/2023(b) | 42,000 | 42,052 | ||||||
Sr. Unsec. Gtd. Notes, 7.00%, 07/15/2024(b) | 893,000 | 916,088 | ||||||
Spectrum Brands, Inc., Sr. Unsec. Gtd. Global Notes, 5.75%, 07/15/2025 | 305,000 | 300,044 | ||||||
14,645,170 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Housewares & Specialties-0.02% |
| |||||||
Newell Brands Inc., Sr. Unsec. Global Notes, 4.20%, 04/01/2026 | $ | 925,000 | $ | 869,436 | ||||
Hypermarkets & Super Centers-0.00% |
| |||||||
Cencosud S.A. (Chile), REGS, Sr. Unsec. Gtd. Euro Notes, 4.38%, 07/17/2027(b) | 200,000 | 186,800 | ||||||
Independent Power Producers & Energy Traders-0.06% |
| |||||||
AES Corp. (The), Sr. Unsec. Notes, 5.50%, 04/15/2025 | 912,000 | 942,780 | ||||||
Calpine Corp., Sr. Unsec. Global Notes, 5.38%, 01/15/2023 | 143,000 | 141,927 | ||||||
Colbun S.A. (Chile), Sr. Unsec. Notes, 3.95%, 10/11/2027(b) | 200,000 | 193,127 | ||||||
Emirates SembCorp Water & Power Co. PJSC (United Arab Emirates), Sr. Sec. Notes, 4.45%, 08/01/2035(b) | 200,000 | 198,000 | ||||||
NRG Energy, Inc., Sr. Unsec. Gtd. Global Notes, 6.25%, 05/01/2024 | 590,000 | 611,269 | ||||||
6.63%, 01/15/2027 | 62,000 | 66,263 | ||||||
2,153,366 | ||||||||
Industrial Conglomerates-0.01% |
| |||||||
CITIC Ltd. (China), REGS, Sr. Unsec. Medium-Term Euro Notes, 3.13%, 02/28/2022(b) | 200,000 | 196,518 | ||||||
Industrial Machinery-0.03% |
| |||||||
Cleaver-Brooks, Inc., Sr. Sec. Notes, 7.88%, 03/01/2023(b) | 554,000 | 542,920 | ||||||
EnPro Industries, Inc., Sr. Unsec. Gtd. Notes, 5.75%, 10/15/2026(b) | 205,000 | 207,050 | ||||||
Mueller Industries, Inc., Unsec. Sub. Deb., 6.00%, 03/01/2027 | 279,000 | 274,117 | ||||||
1,024,087 | ||||||||
Integrated Oil & Gas-0.35% |
| |||||||
BP Capital Markets America, Inc., Sr. Unsec. Gtd. Global Notes, 3.41%, 02/11/2026 | 5,921,000 | 5,915,187 | ||||||
Ecopetrol S.A. (Colombia), Sr. Unsec. Global Notes, 5.88%, 05/28/2045 | 100,000 | 101,205 | ||||||
Petrobras Global Finance B.V. (Brazil), Sr. Unsec. Gtd. Global Notes, 5.75%, 02/01/2029 | 733,000 | 734,099 | ||||||
7.25%, 03/17/2044 | 170,000 | 182,176 | ||||||
Petróleos del Perú S.A. (Peru), Sr. Unsec. Notes, 4.75%, | 375,000 | 370,313 |
Principal Amount | Value | |||||||
Integrated Oil & Gas-(continued) |
| |||||||
Petroleos Mexicanos (Mexico), Sr. Unsec. Gtd. Global Notes, 5.38%, 03/13/2022 | $ | 150,000 | $ | 151,073 | ||||
6.50%, 03/13/2027 | 4,374,000 | 4,244,530 | ||||||
6.50%, 01/23/2029 | 94,000 | 89,121 | ||||||
6.35%, 02/12/2048 | 1,925,000 | 1,605,257 | ||||||
Petroleum Co. of Trinidad and Tobago Ltd. (Trinidad), REGS, Sr. Unsec. Euro Notes, 9.75%, 08/14/2019(b) | 100,000 | 98,375 | ||||||
13,491,336 | ||||||||
Integrated Telecommunication Services-1.64% |
| |||||||
AT&T Inc., Sr. Unsec. Global Notes, 3.40%, 05/15/2025 | 3,812,000 | 3,717,743 | ||||||
5.25%, 03/01/2037 | 360,000 | 364,005 | ||||||
4.75%, 05/15/2046 | 4,247,000 | 3,949,737 | ||||||
5.70%, 03/01/2057 | 4,698,000 | 4,803,465 | ||||||
Sr. Unsec. Gtd. Global Notes, 5.15%, 02/15/2050 | 35,788,000 | 34,798,574 | ||||||
Sr. Unsec. Notes, 4.45%, 04/01/2024 | 200,000 | 207,197 | ||||||
Cincinnati Bell, Inc., Sr. Unsec. Gtd. Notes, 7.00%, 07/15/2024(b) | 92,000 | 83,720 | ||||||
Sr. Unsec. Notes, 8.00%, 10/15/2025(b) | 31,000 | 28,210 | ||||||
CommScope Finance LLC, Sr. Sec. Notes, 5.50%, 03/01/2024(b) | 4,578,000 | 4,669,560 | ||||||
CommScope, Inc., Sr. Sec. Notes, 6.00%, 03/01/2026(b) | 1,576,000 | 1,617,370 | ||||||
Frontier Communications Corp., Sr. Unsec. Global Notes, 10.50%, 09/15/2022 | 31,000 | 22,320 | ||||||
11.00%, 09/15/2025 | 618,000 | 397,838 | ||||||
Numericable-SFR S.A. (France), Sr. Sec. Gtd. First Lien Notes, 7.38%, 05/01/2026(b) | 200,000 | 197,174 | ||||||
Telecom Italia Capital S.A. (Italy), Sr. Unsec. Gtd. Global Notes, 6.38%, 11/15/2033 | 34,000 | 32,130 | ||||||
7.20%, 07/18/2036 | 672,000 | 676,838 | ||||||
Türk Telekomünikasyon A.S. (Turkey), Sr. Unsec. Notes, | 7,005,000 | 7,011,192 | ||||||
Verizon Communications Inc., Sr. Unsec. Global Bonds, 5.25%, 03/16/2037 | 350,000 | 381,563 | ||||||
62,958,636 | ||||||||
Interactive Media & Services-0.88% |
| |||||||
Match Group, Inc., Sr. Unsec. Notes, 5.63%, 02/15/2029(b) | 9,499,000 | 9,481,190 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Interactive Media & Services-(continued) |
| |||||||
Tencent Holdings Ltd. (China), Sr. Unsec. Notes, 3.38%, 05/02/2019(b) | $ | 5,779,000 | $ | 5,783,939 | ||||
2.99%, 01/19/2023(b) | 5,274,000 | 5,178,391 | ||||||
3.60%, 01/19/2028(b) | 6,192,000 | 5,999,419 | ||||||
3.93%, 01/19/2038(b) | 7,975,000 | 7,430,218 | ||||||
33,873,157 | ||||||||
Internet & Direct Marketing Retail-0.58% |
| |||||||
Alibaba Group Holding Ltd. (China), Sr. Unsec. Global Notes, 3.60%, 11/28/2024 | 200,000 | 202,085 | ||||||
4.20%, 12/06/2047 | 5,425,000 | 5,130,859 | ||||||
4.40%, 12/06/2057 | 5,440,000 | 5,198,444 | ||||||
QVC, Inc., Sr. Sec. Gtd. First Lien Global Notes, 4.45%, 02/15/2025 | 380,000 | 370,086 | ||||||
5.45%, 08/15/2034 | 12,403,000 | 11,423,430 | ||||||
22,324,904 | ||||||||
Investment Banking & Brokerage-1.16% |
| |||||||
Cantor Fitzgerald, L.P., Unsec. Notes, 6.50%, 06/17/2022(b) | 1,727,000 | 1,816,714 | ||||||
Goldman Sachs Group, Inc. (The), Series P, Jr. Unsec. Sub. Floating Rate Notes, 5.00% (3 mo. USD LIBOR + 2.87%)(c)(d) | 7,805,000 | 7,192,112 | ||||||
Sr. Unsec. Floating Rate Notes, 3.27% (3 mo. USD LIBOR + | 7,286,000 | 7,070,854 | ||||||
Sr. Unsec. Global Notes, 3.75%, 05/22/2025 | 5,664,000 | 5,642,512 | ||||||
Jefferies Group LLC/Jefferies Group Capital Finance, Inc., Sr. Unsec. Global Notes, 4.15%, 01/23/2030 | 335,000 | 292,830 | ||||||
Morgan Stanley, Series G, Unsec. Sub. Medium-Term Global Notes, 4.35%, 09/08/2026 | 4,867,000 | 4,891,713 | ||||||
Series MPLE, Sr. Unsec. Notes, 3.00%, 02/07/2024 | 4,000,000 | 3,019,659 | ||||||
Sr. Unsec. Global Floating Rate Notes, 3.59% (3 mo. USD LIBOR + 1.34%), 07/22/2028(d) | 10,764,000 | 10,460,102 | ||||||
Sr. Unsec. Medium-Term Global Notes, 5.50%, 07/28/2021 | 3,712,000 | 3,908,700 | ||||||
Raymond James Financial, Inc., Sr. Unsec. Global Notes, 4.95%, 07/15/2046 | 295,000 | 296,060 | ||||||
44,591,256 | ||||||||
Leisure Facilities-0.01% | ||||||||
Six Flags Entertainment Corp., Sr. Unsec. Gtd. Notes, 4.88%, 07/31/2024(b) | 380,000 | 375,250 |
Principal Amount | Value | |||||||
Life & Health Insurance-1.56% |
| |||||||
American Equity Investment Life Holding Co., Sr. Unsec. Global Notes, 5.00%, 06/15/2027 | $ | 7,395,000 | $ | 7,348,096 | ||||
Athene Holding Ltd., Sr. Unsec. Notes, 4.13%, 01/12/2028 | 12,847,000 | 12,004,517 | ||||||
Global Atlantic Financial Group Ltd., Sr. Unsec. Notes, 8.63%, 04/15/2021(b) | 50,000 | 54,913 | ||||||
Harborwalk Funding Trust, Unsec. Sub. Floating Rate Notes, 5.08% (3 mo. USD LIBOR + 3.19%), 02/15/2069(b)(d) | 21,305,000 | 21,305,000 | ||||||
MetLife, Inc., Series C, Jr. Unsec. Sub. Floating Rate Global Notes, 5.25% (3 mo. USD LIBOR + 3.58%)(c)(d) | 7,496,000 | 7,552,857 | ||||||
Series D, Jr. Unsec. Sub. Global Floating Rate Notes, 5.88%(c)(d) | 200,000 | 201,705 | ||||||
Pacific Life Insurance Co., Unsec. Sub. Floating Rate Notes, 4.30% (3 mo. USD LIBOR + 2.80%), 10/24/2067(b)(d) | 6,207,000 | 5,542,674 | ||||||
Prudential Financial, Inc., Jr. Unsec. Sub. Global Floating Rate Notes, 5.63% (3 mo. USD LIBOR + 3.92%), 06/15/2043(d) | 5,590,000 | 5,805,355 | ||||||
59,815,117 | ||||||||
Managed Health Care-0.03% |
| |||||||
Centene Corp., Sr. Unsec. Notes, 5.38%, 06/01/2026(b) | 582,000 | 605,280 | ||||||
Molina Healthcare, Inc., Sr. Unsec. Gtd. Notes, 4.88%, 06/15/2025(b) | 120,000 | 118,650 | ||||||
WellCare Health Plans, Inc., Sr. Unsec. Notes, 5.25%, 04/01/2025 | 265,000 | 271,546 | ||||||
5.38%, 08/15/2026(b) | 173,000 | 178,406 | ||||||
1,173,882 | ||||||||
Marine-0.00% | ||||||||
Hidrovias International Finance S.a.r.l. (Brazil), Sr. Unsec. Gtd. Notes, 5.95%, 01/24/2025(b) | 200,000 | 188,500 | ||||||
Marine Ports & Services-0.02% |
| |||||||
DP World Crescent Ltd. (United Arab Emirates), Sr. Unsec. Notes, 4.85%, 09/26/2028(b) | 200,000 | 205,997 | ||||||
DP World Ltd. (United Arab Emirates), REGS, Sr. Unsec. Medium-Term Euro Notes, 6.85%, 07/02/2037(b) | 200,000 | 239,140 | ||||||
Sr. Unsec. Bonds, 5.63%, 09/25/2048(b) | 200,000 | 202,091 | ||||||
647,228 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Metal & Glass Containers-0.03% |
| |||||||
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. (Ireland), Sr. Unsec. Gtd. Notes, 6.00%, 02/15/2025(b) | $ | 200,000 | $ | 198,000 | ||||
Ball Corp., Sr. Unsec. Gtd. Global Notes, 5.25%, 07/01/2025 | 405,000 | 426,262 | ||||||
Berry Global, Inc., Sec. Gtd. Second Lien Global Notes, 6.00%, 10/15/2022 | 60,000 | 61,800 | ||||||
Sec. Gtd. Second Lien Notes, 5.50%, 05/15/2022 | 87,000 | 88,414 | ||||||
Flex Acquisition Co., Inc., Sr. Unsec. Notes, 7.88%, | 280,000 | 268,800 | ||||||
OI European Group B.V., Sr. Unsec. Gtd. Notes, 4.00%, 03/15/2023(b) | 80,000 | 78,400 | ||||||
1,121,676 | ||||||||
Movies & Entertainment-0.02% |
| |||||||
21st Century Fox America, Inc., Sr. Unsec. Gtd. Global Notes, 6.55%, 03/15/2033 | 180,000 | 230,800 | ||||||
AMC Entertainment Holdings, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 5.75%, 06/15/2025 | 310,000 | 287,138 | ||||||
Warner Media, LLC, Sr. Unsec. Gtd. Global Deb., 5.35%, 12/15/2043 | 245,000 | 244,356 | ||||||
762,294 | ||||||||
Multi-line Insurance-0.50% |
| |||||||
Acrisure LLC/Acrisure Finance, Inc., Sr. Sec. Notes, 8.13%, 02/15/2024(b) | 75,000 | 76,969 | ||||||
AIG Global Funding, Sr. Sec. First Lien Notes, 2.70%, 12/15/2021(b) | 5,386,000 | 5,263,538 | ||||||
American Financial Group, Inc., Sr. Unsec. Notes, 3.50%, 08/15/2026 | 590,000 | 559,301 | ||||||
Fairfax Financial Holdings Ltd. (Canada), Sr. Unsec. Global Notes, 4.85%, 04/17/2028 | 7,920,000 | 7,800,568 | ||||||
XLIT Ltd. (Bermuda), Unsec. Gtd. Sub. Bonds, 5.50%, 03/31/2045 | 5,097,000 | 5,428,443 | ||||||
19,128,819 | ||||||||
Multi-Utilities-0.56% | ||||||||
Abu Dhabi National Energy Co. PJSC (United Arab Emirates), Sr. Unsec. Notes, 4.88%, | 200,000 | 208,980 | ||||||
CenterPoint Energy, Inc., Series A, Jr. Unsec. Sub. Notes, 6.13%(c)(d) | 21,001,000 | 21,350,982 |
Principal Amount | Value | |||||||
Multi-Utilities-(continued) | ||||||||
Sempra Energy, Sr. Unsec. Global Notes, 2.90%, 02/01/2023 | $ | 140,000 | $ | 135,515 | ||||
21,695,477 | ||||||||
Office REITs-0.02% | ||||||||
Alexandria Real Estate Equities, Inc., Sr. Unsec. Gtd. Global Notes, 3.95%, 01/15/2027 | 325,000 | 320,333 | ||||||
Hudson Pacific Properties, L.P., Sr. Unsec. Gtd. Notes, 3.95%, 11/01/2027 | 335,000 | 316,857 | ||||||
Select Income REIT, Sr. Unsec. Global Notes, 4.50%, 02/01/2025 | 330,000 | 313,556 | ||||||
950,746 | ||||||||
Office Services & Supplies-0.24% |
| |||||||
Pitney Bowes, Inc., Sr. Unsec. Global Notes, 3.88%, 10/01/2021 | 8,285,000 | 8,077,875 | ||||||
4.95%, 04/01/2023 | 1,205,000 | 1,138,725 | ||||||
9,216,600 | ||||||||
Oil & Gas Drilling-0.04% | ||||||||
Diamond Offshore Drilling, Inc., Sr. Unsec. Global Notes, 4.88%, 11/01/2043 | 134,000 | 84,420 | ||||||
Ensco PLC, Sr. Unsec. Global Notes, 4.50%, 10/01/2024 | 20,000 | 15,500 | ||||||
7.75%, 02/01/2026 | 513,000 | 432,202 | ||||||
Noble Holding International Ltd., Sr. Unsec. Gtd. Global Notes, 7.75%, 01/15/2024 | 256,000 | 228,800 | ||||||
Precision Drilling Corp. (Canada), Sr. Unsec. Gtd. Global Notes, 6.50%, 12/15/2021 | 37,201 | 37,573 | ||||||
7.75%, 12/15/2023 | 19,000 | 19,333 | ||||||
5.25%, 11/15/2024 | 443,000 | 405,345 | ||||||
Transocean, Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 04/15/2031 | 269,000 | 223,942 | ||||||
Vantage Drilling International, Sr. Sec. Gtd. First Lien Global Notes, 7.50%, 11/01/2019(f)(g) | 356,000 | 0 | ||||||
1,447,115 | ||||||||
Oil & Gas Equipment & Services-0.01% |
| |||||||
Archrock Partners, L.P./Archrock Partners Finance Corp., Sr. Unsec. Gtd. Global Notes, 6.00%, 10/01/2022 | 85,000 | 84,575 | ||||||
SESI LLC, Sr. Unsec. Gtd. Global Notes, 7.13%, 12/15/2021 | 223,000 | 207,390 | ||||||
291,965 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
17 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Oil & Gas Exploration & Production-1.08% |
| |||||||
Antero Resources Corp., Sr. Unsec. Gtd. Global Notes, 5.63%, 06/01/2023 | $ | 249,000 | $ | 250,556 | ||||
Ascent Resources Utica Holdings, LLC/ARU Finance Corp., Sr. Unsec. Notes, 10.00%, 04/01/2022(b) | 340,000 | 368,050 | ||||||
California Resources Corp., Sec. Gtd. Second Lien Notes, 8.00%, | 161,000 | 129,001 | ||||||
Callon Petroleum Co., Sr. Unsec. Gtd. Global Notes, 6.13%, 10/01/2024 | 550,000 | 556,875 | ||||||
CNOOC Curtis Funding No. 1 Pty Ltd. (China), REGS, Sr. Unsec. Gtd. Euro Notes, 4.50%, | 200,000 | 207,778 | ||||||
CNOOC Finance (2015) U.S.A. LLC (China), Sr. Unsec. Gtd. Global Notes, 3.50%, 05/05/2025 | 400,000 | 396,531 | ||||||
Concho Resources, Inc., Sr. Unsec. Gtd. Global Notes, 4.38%, 01/15/2025 | 565,000 | 573,097 | ||||||
Continental Resources, Inc., Sr. Unsec. Gtd. Global Notes, 5.00%, 09/15/2022 | 22,972,000 | 23,227,436 | ||||||
Denbury Resources, Inc., Sr. Unsec. Gtd. Sub. Notes, 5.50%, 05/01/2022 | 80,000 | 59,200 | ||||||
Dolphin Energy Ltd. LLC (United Arab Emirates), REGS, Sr. Sec. Euro Bonds, 5.50%, | 600,000 | 630,987 | ||||||
Enterprise Products Operating LLC, Series D, Jr. Unsec. Gtd. Sub. Deb., 4.88%, 08/16/2077(d) | 7,829,000 | 7,099,812 | ||||||
EP Energy LLC/Everest Acquisition Finance, Inc., Sr. Sec. Gtd. First Lien Notes, 8.00%, | 152,000 | 107,920 | ||||||
Gazprom OAO Via Gaz Capital S.A. (Russia), Sr. Unsec. Bonds, 5.15%, 02/11/2026(b) | 350,000 | 350,411 | ||||||
Gulfport Energy Corp., Sr. Unsec. Gtd. Global Notes, 6.63%, 05/01/2023 | 35,000 | 34,475 | ||||||
6.00%, 10/15/2024 | 544,000 | 495,040 | ||||||
Harvest Operations Corp. (South Korea), Sr. Unsec. Gtd. Notes, 4.20%, 06/01/2023(b) | 200,000 | 206,212 | ||||||
Jagged Peak Energy LLC, Sr. Unsec. Gtd. Notes, 5.88%, 05/01/2026(b) | 424,000 | 430,360 | ||||||
Newfield Exploration Co., Sr. Unsec. Global Notes, 5.63%, 07/01/2024 | 389,000 | 416,959 | ||||||
Oasis Petroleum, Inc., Sr. Unsec. Gtd. Global Notes, 6.88%, 01/15/2023 | 504,000 | 502,110 |
Principal Amount | Value | |||||||
Oil & Gas Exploration & Production-(continued) |
| |||||||
Parsley Energy, LLC/Parsley Finance Corp., Sr. Unsc. Gtd. Notes, 5.63%, 10/15/2027(b) | $ | 177,000 | $ | 176,115 | ||||
Sr. Unsec. Gtd. Notes, 6.25%, 06/01/2024(b) | 413,000 | 424,358 | ||||||
Pertamina Persero PT (Indonesia), REGS, Sr. Unsec. Medium-Term Euro Notes, 4.30%, 05/20/2023(b) | 200,000 | 202,456 | ||||||
QEP Resources, Inc., Sr. Unsec. Global Notes, 5.25%, 05/01/2023 | 79,000 | 76,433 | ||||||
5.63%, 03/01/2026 | 77,000 | 72,573 | ||||||
Sr. Unsec. Notes, 6.88%, 03/01/2021 | 355,000 | 368,756 | ||||||
Range Resources Corp., Sr. Unsec. Gtd. Global Notes, 5.88%, 07/01/2022 | 157,000 | 159,355 | ||||||
4.88%, 05/15/2025 | 531,000 | 489,018 | ||||||
Sinopec Group Overseas Development 2015 Ltd. (China), REGS, Sr. Unsec. Gtd. Euro Notes, 2.50%, 04/28/2020(b) | 300,000 | 297,758 | ||||||
SM Energy Co., Sr. Unsec. Global Notes, 6.13%, 11/15/2022 | 462,000 | 462,000 | ||||||
6.63%, 01/15/2027 | 54,000 | 51,705 | ||||||
Southwestern Energy Co., Sr. Unsec. Gtd. Global Notes, 7.50%, 04/01/2026 | 217,000 | 226,765 | ||||||
7.75%, 10/01/2027 | 502,000 | 523,962 | ||||||
Tengizchevroil Finance Co. International Ltd. (Kazakhstan), REGS, Sr. Sec. Gtd. Euro Bonds, 4.00%, 08/15/2026(b) | 200,000 | 193,190 | ||||||
Tullow Oil PLC (Ghana), Sr. Unsec. Notes, 7.00%, 03/01/2025(b) | 205,000 | 203,821 | ||||||
Whiting Petroleum Corp., Sr. Unsec. Gtd. Global Notes, 6.25%, 04/01/2023 | 632,000 | 638,320 | ||||||
WildHorse Resource Development Corp., Sr. Unsec. Gtd. Global Notes, 6.88%, 02/01/2025 | 561,000 | 571,519 | ||||||
WPX Energy, Inc., Sr. Unsec. Notes, 5.25%, 09/15/2024 | 514,000 | 514,642 | ||||||
41,695,556 | ||||||||
Oil & Gas Refining & Marketing-0.03% |
| |||||||
Empresa Nacional del Petroleo (Chile), Sr. Unsec. Notes, 5.25%, 11/06/2029(b) | 233,000 | 246,705 | ||||||
Parkland Fuel Corp. (Canada), Sr. Unsec. Notes, 6.00%, | 240,000 | 237,000 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
18 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Oil & Gas Refining & Marketing-(continued) |
| |||||||
Puma International Financing S.A. (Singapore), Sr. Unsec. Gtd. Notes, 5.00%, | $ | 200,000 | $ | 172,006 | ||||
Reliance Industries Ltd. (India), REGS, Sr. Unsec. Euro Notes, 4.13%, 01/28/2025(b) | 250,000 | 250,378 | ||||||
Sunoco L.P./Sunoco Finance Corp., Sr. Unsec. Gtd. Global Notes, 4.88%, 01/15/2023 | 229,000 | 232,435 | ||||||
1,138,524 | ||||||||
Oil & Gas Storage & Transportation-2.20% |
| |||||||
Abu Dhabi Crude Oil Pipeline LLC (United Arab Emirates), Sr. Sec. Notes, 3.65%, | 200,000 | 196,675 | ||||||
Buckeye Partners, L.P., Sr. Unsec. Global Notes, 5.60%, 10/15/2044 | 9,914,000 | 9,163,787 | ||||||
Energy Transfer Equity, L.P., Sr. Sec. First Lien Notes, 5.88%, 01/15/2024 | 213,000 | 228,975 | ||||||
Energy Transfer Partners, L.P., Series A, Jr. Unsec. Sub. Global Rate Notes, 6.25%(c)(d) | 8,121,000 | 7,402,088 | ||||||
Sr. Unsec. Gtd. Notes, 4.75%, 01/15/2026 | 815,000 | 830,779 | ||||||
EQT Midstream Partners L.P., Sr. Unsec. Notes, 4.00%, 08/01/2024 | 840,000 | 811,843 | ||||||
Holly Energy Partners L.P./Holly Energy Finance Corp., Sr. Unsec. Gtd. Notes, 6.00%, 08/01/2024(b) | 158,000 | 162,740 | ||||||
Kinder Morgan, Inc., Sr. Unsec. Gtd. Medium-Term Global Notes, 7.80%, 08/01/2031 | 2,350,000 | 2,938,662 | ||||||
7.75%, 01/15/2032 | 7,887,000 | 9,903,791 | ||||||
MPLX L.P., Sr. Unsec. Global Bonds, 4.50%, 07/15/2023 | 560,000 | 579,265 | ||||||
NGPL PipeCo. LLC, Sr. Unsec. Notes, 7.77%, 12/15/2037(b) | 2,153,000 | 2,580,909 | ||||||
Plains All American Pipeline, L.P., Series B, Jr. Unsec. Sub. Notes, 6.13%(c)(d) | 25,343,000 | 23,468,252 | ||||||
SemGroup Corp., Sr. Unsec. Gtd. Global Notes, 6.38%, 03/15/2025 | 185,000 | 175,288 | ||||||
Targa Resources Partners L.P./Targa Resources Partners Finance Corp., Sr. Unsec. Gtd. Global Bonds, 5.25%, 05/01/2023 | 6,533,000 | 6,639,096 | ||||||
5.13%, 02/01/2025 | 592,000 | 597,920 | ||||||
Sr. Unsec. Gtd. Notes, 5.88%, 04/15/2026(b) | 407,000 | 425,315 |
Principal Amount | Value | |||||||
Oil & Gas Storage & Transportation-(continued) |
| |||||||
Western Gas Partners, L.P., Sr. Unsec. Notes, 5.30%, 03/01/2048 | $ | 5,564,000 | $ | 5,102,937 | ||||
Williams Cos., Inc. (The), Sr. Unsec. Global Notes, 4.55%, 06/24/2024 | 574,000 | 594,950 | ||||||
Sr. Unsec. Notes, 4.13%, 11/15/2020 | 12,548,000 | 12,700,699 | ||||||
7.88%, 09/01/2021 | 109,000 | 119,857 | ||||||
84,623,828 | ||||||||
Other Diversified Financial Services-0.07% |
| |||||||
Arab Petroleum Investments Corp. (Supranational), Sr. Unsec. Notes, 4.13%, 09/18/2023(b) | 200,000 | 204,878 | ||||||
Banco BTG Pactual S.A. (Brazil), Unsec. Sub. Floating Rate Notes, 7.75% (5 yr. U.S. Treasury Yield Curve Rate + 5.26%), 02/15/2029(b)(d) | 300,000 | 300,150 | ||||||
Corp. Financiera de Desarrollo S.A. (Peru), REGS, Sr. Unsec. Euro Bonds, 3.25%, 07/15/2019(b) | 200,000 | 200,340 | ||||||
Fondo MIVIVIENDA S.A. (Peru), REGS, Sr. Unsec. Euro Notes, 3.50%, 01/31/2023(b) | 300,000 | 298,203 | ||||||
Huarong Finance II Co., Ltd. (China), REGS, Sr. Unsec. Gtd. Medium-Term Floating Rate Euro Notes, 2.88% (5 yr. U.S. Treasury Yield Curve Rate + 6.71%)(b)(c)(d) | 200,000 | 190,479 | ||||||
Intertrust Group B.V. (Netherlands), Sr. Unsec. Bonds, 3.38%, 11/15/2025(b) | 150,000 | 174,794 | ||||||
LPL Holdings, Inc., Sr. Unsec. Gtd. Notes, 5.75%, | 175,000 | 177,406 | ||||||
Peru Enhanced Pass-Through Finance Ltd. (Peru), REGS,Class A-2, Sr. Sec. First Lien Pass Through Euro Ctfs., 0.00%, 06/02/2025(b)(h) | 273,707 | 242,231 | ||||||
SPARC EM SPC Panama Metro Line 2 S.P. (Cayman Islands), Sr. Sec. Notes, 0.00%, 12/05/2022(b)(h) | 512,498 | 470,857 | ||||||
Tempo Acquisition LLC/Tempo Acquisition Finance Corp., Sr. Unsec. Notes, 6.75%, 06/01/2025(b) | 267,000 | 271,005 | ||||||
VFH Parent LLC/OrchestraCo-Issuer, Inc., Sec. Gtd. Second Lien Notes, 6.75%, 06/15/2022(b) | 60,000 | 61,703 | ||||||
2,592,046 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
19 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Packaged Foods & Meats-0.05% |
| |||||||
B&G Foods, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 04/01/2025 | $ | 332,000 | $ | 318,899 | ||||
JBS Investments GmbH, Sr. Unsec. Gtd. Notes, 7.25%, 04/03/2024(b) | 500,000 | 518,380 | ||||||
Kraft Heinz Foods Co. (The), Sr. Unsec. Gtd. Global Notes, 4.38%, 06/01/2046 | 400,000 | 332,012 | ||||||
Lamb Weston Holdings, Inc., Sr. Unsec. Gtd. Notes, 4.63%, 11/01/2024(b) | 494,000 | 497,705 | ||||||
TreeHouse Foods, Inc., Sr. Unsec. Gtd. Notes, 6.00%, | 249,000 | 257,404 | ||||||
1,924,400 | ||||||||
Paper Packaging-0.03% | ||||||||
International Paper Co., Sr. Unsec. Global Notes, 5.00%, 09/15/2035 | 700,000 | 706,037 | ||||||
Plastipak Holdings, Inc., Sr. Unsec. Notes, 6.25%, 10/15/2025(b) | 449,000 | 413,080 | ||||||
1,119,117 | ||||||||
Paper Products-0.36% | ||||||||
Celulosa Arauco y Constitución S.A. (Chile), Sr. Unsec. Global Notes, 4.50%, 08/01/2024 | 200,000 | 203,650 | ||||||
Mercer International, Inc. (Canada), Sr. Unsec. Global Notes, 7.75%, 12/01/2022 | 26,000 | 27,089 | ||||||
6.50%, 02/01/2024 | 392,000 | 401,800 | ||||||
5.50%, 01/15/2026 | 98,000 | 94,080 | ||||||
Schweitzer-Mauduit International, Inc., Sr. Unsec. Gtd. Notes, 6.88%, 10/01/2026(b) | 434,000 | 427,490 | ||||||
Suzano Austria GmbH (Brazil), Sr. Unsec. Gtd. Notes, 6.00%, 01/15/2029(b) | 6,475,000 | 6,893,932 | ||||||
7.00%, 03/16/2047(b) | 5,192,000 | 5,706,008 | ||||||
13,754,049 | ||||||||
Personal Products-0.01% | ||||||||
Natura Cosmeticos S.A. (Brazil), Sr. Unsec. Notes, 5.38%, 02/01/2023(b) | 200,000 | 202,376 |
Principal Amount | Value | |||||||
Pharmaceuticals-0.74% | ||||||||
Bausch Health Cos. Inc., REGS, Sr. Sec. Gtd. First Lien Euro Notes, 7.00%, 03/15/2024(b) | $ | 150,000 | $ | 158,438 | ||||
Sr. Sec. Gtd. First Lien Notes, 5.50%, 11/01/2025(b) | 129,000 | 130,613 | ||||||
Sr. Sec. Notes, 5.75%, 08/15/2027(b) | 1,043,000 | 1,054,734 | ||||||
Sr. Unsec. Gtd. Notes, 5.88%, 05/15/2023(b) | 33,000 | 32,959 | ||||||
6.13%, 04/15/2025(b) | 175,000 | 168,875 | ||||||
Bayer US Finance II LLC (Germany), Sr. Unsec. Gtd. Floating Rate Notes, 3.80% | 11,953,000 | 11,709,274 | ||||||
Sr. Unsec. Gtd. Notes, 3.88%, 12/15/2023(b) | 7,293,000 | 7,277,003 | ||||||
Elanco Animal Health Inc., Sr. Unsec. Notes, 3.91%, 08/27/2021(b) | 7,201,000 | 7,284,409 | ||||||
Endo Dac/Endo Finance LLC/Endo Finco, Inc., Sr. Unsec. Gtd. Notes, 6.00%, 07/15/2023(b) | 200,000 | 166,750 | ||||||
HLF Financing S.a.r.l. LLC/Herbalife International, Inc., Sr. Unsec. Gtd. Notes, 7.25%, 08/15/2026(b) | 238,000 | 243,069 | ||||||
Teva Pharmaceutical Finance IV, B.V. (Israel), Sr. Unsec. Gtd. Global Notes, 3.65%, 11/10/2021 | 265,000 | 258,533 | ||||||
28,484,657 | ||||||||
Property & Casualty Insurance-0.01% |
| |||||||
Allstate Corp. (The), Sr. Unsec. Notes, 4.20%, 12/15/2046 | 310,000 | 309,655 | ||||||
Publishing-0.11% | ||||||||
Meredith Corp., Sr. Unsec. Gtd. Global Notes, 6.88%, 02/01/2026 | 4,206,000 | 4,364,987 | ||||||
Railroads-0.10% | ||||||||
Autoridad del Canal de Panamá (Panama), REGS, Sr. Unsec. Euro Bonds, 4.95%, | 300,000 | 313,875 | ||||||
CSX Corp., Sr. Unsec. Global Notes, 4.65%, 03/01/2068 | 3,387,000 | 3,170,286 | ||||||
Kenan Advantage Group, Inc. (The), Sr. Unsec. Notes, 7.88%, 07/31/2023(b) | 202,000 | 197,582 | ||||||
3,681,743 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
20 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Regional Banks-0.26% | ||||||||
Banco Internacional del Peru SAA Interbank (Peru), REGS, Sr. Unsec. Medium-Term Euro Notes, 3.38%, 01/18/2023(b) | $ | 150,000 | $ | 147,225 | ||||
CIT Group, Inc., Sr. Unsec. Global Notes, 5.00%, 08/01/2023 | 536,000 | 556,909 | ||||||
Synovus Financial Corp., Sr. Unsec. Global Notes, 3.13%, 11/01/2022 | 5,096,000 | 4,930,380 | ||||||
Unsec. Sub. Floating Rate Notes, 5.90% (5 yr. U.S. Swap Rate + 3.38%), 02/07/2029(d) | 4,399,000 | 4,431,993 | ||||||
10,066,507 | ||||||||
Reinsurance-0.01% | ||||||||
Reinsurance Group of America, Inc., Sr. Unsec. Medium-Term Notes, 4.70%, 09/15/2023 | 310,000 | 322,954 | ||||||
Research & Consulting Services-0.00% |
| |||||||
IHS Markit Ltd., Sr. Unsec. Gtd. Notes, 5.00%, 11/01/2022(b) | 174,000 | 180,334 | ||||||
Restaurants-0.36% | ||||||||
1011778 BC ULC/ New Red Finance, Inc. (Canada), Sec. Gtd. Second Lien Notes, 5.00%, 10/15/2025(b) | 4,608,000 | 4,480,128 | ||||||
Aramark Services, Inc., Sr. Unsec. Gtd. Notes, 5.00%, | 109,000 | 111,180 | ||||||
IRB Holding Corp., Sr. Unsec. Gtd. Notes, 6.75%, 02/15/2026(b) | 9,611,000 | 9,106,422 | ||||||
KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, Sr. Unsec. Gtd. Notes, 4.75%, 06/01/2027(b) | 84,000 | 82,925 | ||||||
13,780,655 | ||||||||
Security & Alarm Services-0.01% |
| |||||||
Brink’s Co. (The), Sr. Unsec. Gtd. Notes, 4.63%, 10/15/2027(b) | 223,000 | 212,965 | ||||||
Semiconductor Equipment-0.17% |
| |||||||
Lam Research Corp., Sr. Unsec. Sub. Global Notes, 3.75%, 03/15/2026 | 120,000 | 120,203 | ||||||
4.00%, 03/15/2029 | 3,390,000 | 3,395,714 | ||||||
4.88%, 03/15/2049 | 3,005,000 | 3,018,362 | ||||||
6,534,279 | ||||||||
Semiconductors-1.16% | ||||||||
Analog Devices, Inc., Sr. Unsec. Global Notes, 3.13%, 12/05/2023 | 4,238,000 | 4,152,544 |
Principal Amount | Value | |||||||
Semiconductors-(continued) |
| |||||||
Broadcom Corp./Broadcom Cayman Finance Ltd., Sr. Unsec. Gtd. Global Notes, 3.00%, 01/15/2022 | $ | 9,827,000 | $ | 9,651,585 | ||||
3.50%, 01/15/2028 | 3,514,000 | 3,114,553 | ||||||
Micron Technology, Inc., Sr. Unsec. Global Notes, 5.50%, 02/01/2025 | 437,000 | 451,181 | ||||||
5.33%, 02/06/2029 | 3,165,000 | 3,174,464 | ||||||
Sr. Unsec. Sub. Global Notes, 4.98%, 02/06/2026 | 5,430,000 | 5,401,422 | ||||||
NXP B.V./NXP Funding LLC (Netherlands), Sr. Unsec. Gtd. Notes, 3.88%, 09/01/2022(b) | 13,736,000 | 13,734,764 | ||||||
4.63%, 06/01/2023(b) | 4,702,000 | 4,804,645 | ||||||
44,485,158 | ||||||||
Soft Drinks-0.20% | ||||||||
Keurig Dr Pepper Inc., Sr. Unsec. Gtd. Notes, 3.55%, | 7,662,000 | 7,709,962 | ||||||
Sovereign Debt-0.59% | ||||||||
Abu Dhabi Government International Bond (United Arab Emirates), REGS, Sr. Unsec. Euro Bonds, 4.13%, | 200,000 | 198,727 | ||||||
Argentine Republic Government International Bond (Argentina), Sr. Unsec. Global Bonds, 6.25%, 04/22/2019 | 300,000 | 301,015 | ||||||
Bahamas Government International Bond (Bahamas), Sr. Unsec. Notes, 6.00%, 11/21/2028(b) | 427,000 | 440,877 | ||||||
Banque Ouest Africaine de Développement (Supranational), Sr. Unsec. Notes, 5.00%, 07/27/2027(b) | 200,000 | 198,254 | ||||||
Bermuda Government International Bond (Bermuda), REGS, Sr. Unsec. Euro Notes, 3.72%, 01/25/2027(b) | 200,000 | 196,066 | ||||||
Colombia Government International Bond (Colombia), Sr. Unsec. Global Notes, 3.88%, 04/25/2027 | 300,000 | 296,028 | ||||||
Egypt Government International Bond (Egypt), Sr. Unsec. Notes, 6.20%, 03/01/2024(b) | 200,000 | 203,353 | ||||||
7.60%, 03/01/2029(b) | 200,000 | 205,260 | ||||||
8.70%, 03/01/2049(b) | 200,000 | 207,903 | ||||||
Export Credit Bank of Turkey (Turkey), Sr. Unsec. Bonds, 8.25%, 01/24/2024(b) | 200,000 | 208,459 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
21 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Sovereign Debt-(continued) |
| |||||||
Indonesia Government International Bond (Indonesia), REGS, Sr. Unsec. Euro Notes, 5.25%, 01/08/2047(b) | $ | 200,000 | $ | 210,413 | ||||
Sr. Unsec. Global Bonds, 4.75%, 02/11/2029 | 200,000 | 209,224 | ||||||
5.35%, 02/11/2049 | 206,000 | 220,582 | ||||||
Jamaica Government International Bond (Jamaica), Sr. Unsec. Global Notes, 6.75%, 04/28/2028 | 303,000 | 336,506 | ||||||
8.00%, 03/15/2039 | 200,000 | 238,148 | ||||||
7.88%, 07/28/2045 | 4,332,000 | 5,155,080 | ||||||
KSA Sukuk Ltd. (Saudi Arabia), Sr. Unsec. Notes, 3.63%, | 200,000 | 196,961 | ||||||
Latvia Government International Bond (Latvia), REGS, Sr. Unsec. Euro Notes, 2.75%, | 200,000 | 199,431 | ||||||
Mexico Government International Bond (Mexico), Sr. Unsec. Global Notes, 4.50%, 04/22/2029 | 200,000 | 201,402 | ||||||
Oman Government International Bond (Oman), Sr. Unsec. Notes, 4.13%, 01/17/2023(b) | 9,487,000 | 9,141,664 | ||||||
Papua New Guinea Government International Bond (Papua New Guinea), Sr. Unsec. Notes, 8.38%, 10/04/2028(b) | 200,000 | 213,000 | ||||||
Paraguay Government International Bond (Paraguay), Sr. Unsec. Notes, 5.40%, 03/30/2050(b) | 200,000 | 203,448 | ||||||
Philippine Government International Bond (Philippines), Sr. Unsec. Global Bonds, 3.95%, 01/20/2040 | 200,000 | 204,849 | ||||||
Provincia de Buenos Aires (Argentina), REGS, Sr. Unsec. Euro Notes, 5.75%, 06/15/2019(b) | 500,000 | 501,380 | ||||||
Qatar Government International Bond (Qatar), Sr. Unsec. Notes, 4.50%, 04/23/2028(b) | 200,000 | 211,646 | ||||||
5.10%, 04/23/2048(b) | 230,000 | 248,692 | ||||||
Republic of Argentina (Argentina), Sr. Unsec. Global Bonds, 6.88%, 04/22/2021 | 345,000 | 328,181 | ||||||
Republic of Poland Government International Bond (Poland), Sr. Unsec. Global Notes, 4.00%, 01/22/2024 | 150,000 | 155,944 | ||||||
Russian Foreign Bond (Russia), Sr. Unsec. Bonds, 4.38%, | 200,000 | 195,517 | ||||||
5.25%, 06/23/2047(b) | 200,000 | 198,705 |
Principal Amount | Value | |||||||
Sovereign Debt-(continued) |
| |||||||
Saudi Government International Bond (Saudi Arabia), Sr. Unsec. Bonds, 5.25%, 01/16/2050(b) | $ | 395,000 | $ | 414,019 | ||||
Sr. Unsec. Notes, 2.88%, 03/04/2023(b) | 280,000 | 275,620 | ||||||
4.38%, 04/16/2029(b) | 415,000 | 423,959 | ||||||
Slovenia Government International Bond (Slovenia), REGS, Sr. Unsec. Euro Notes, 5.25%, 02/18/2024(b) | 300,000 | 329,781 | ||||||
Trinidad & Tobago Government International Bond (Trinidad), Sr. Unsec. Notes, 4.50%, 08/04/2026(b) | 200,000 | 193,750 | ||||||
22,663,844 | ||||||||
Specialized Consumer Services-0.01% |
| |||||||
ServiceMaster Co., LLC (The), Sr. Unsec. Gtd. Notes, 5.13%, 11/15/2024(b) | 259,000 | 260,942 | ||||||
Sr. Unsec. Notes, 7.45%, 08/15/2027 | 191,000 | 198,640 | ||||||
459,582 | ||||||||
Specialized Finance-1.47% | ||||||||
AerCap Global Aviation Trust (Ireland), Jr. Unsec. Gtd. Sub. Floating Rate Notes, 6.50% (3 mo. USD LIBOR + 4.30%), 06/15/2045(b)(d) | 33,723,000 | 33,723,000 | ||||||
Aircastle Ltd., Sr. Unsec. Global Notes, 7.63%, 04/15/2020 | 55,000 | 57,345 | ||||||
Sr. Unsec. Notes, 5.00%, 04/01/2023 | 327,000 | 332,836 | ||||||
Aviation Capital Group LLC, Sr. Unsec. Floating Rate Notes, 3.42% (3 mo. USD LIBOR + 0.67%), 07/30/2021(b)(d) | 4,679,000 | 4,647,761 | ||||||
Sr. Unsec. Notes, 4.13%, 08/01/2025(b) | 5,549,000 | 5,426,333 | ||||||
3.50%, 11/01/2027(b) | 9,841,000 | 9,150,293 | ||||||
Park Aerospace Holdings Ltd. (Ireland), Sr. Unsec. Gtd. Notes, 5.25%, 08/15/2022(b) | 2,937,000 | 3,013,979 | ||||||
56,351,547 | ||||||||
Specialized REITs-0.43% | ||||||||
American Tower Corp., Sr. Unsec. Notes, 5.05%, 09/01/2020 | 260,000 | 267,214 | ||||||
Crown Castle International Corp., Sr. Unsec. Global Bonds, 3.80%, 02/15/2028 | 9,255,000 | 8,946,991 | ||||||
Equinix, Inc., Sr. Unsec. Notes, 5.88%, 01/15/2026 | 981,000 | 1,030,050 | ||||||
GLP Capital L.P./GLP Financing II, Inc., Sr. Unsec. Gtd. Notes, 5.38%, 04/15/2026 | 156,000 | 161,568 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
22 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Specialized REITs-(continued) |
| |||||||
Iron Mountain US Holdings, Inc., Sr. Unsec. Gtd. Notes, 5.38%, 06/01/2026(b) | $ | 522,000 | $ | 508,950 | ||||
Iron Mountain, Inc., Sr. Unsec. Gtd. Notes, 6.00%, 08/15/2023 | 142,000 | 145,905 | ||||||
Sr. Unsec. Sub. Gtd. Notes, 5.25%, 03/15/2028(b) | 138,000 | 132,825 | ||||||
Rayonier Am Products, Inc., Sr. Unsec. Gtd. Notes, 5.50%, 06/01/2024(b) | 585,000 | 544,389 | ||||||
Regency Centers, L.P., Sr. Unsec. Gtd. Notes, 4.13%, 03/15/2028 | 4,719,000 | 4,733,291 | ||||||
SBA Communications Corp., Sr. Unsec. Global Notes, 4.88%, 09/01/2024 | 158,000 | 158,395 | ||||||
16,629,578 | ||||||||
Specialty Chemicals-0.20% |
| |||||||
Ashland LLC, Sr. Unsec. Gtd. Global Notes, 4.75%, 08/15/2022 | 180,000 | 185,625 | ||||||
Braskem Netherlands Finance B.V. (Brazil), REGS, Sr. Unsec. Gtd. Euro Notes, 4.50%, 01/10/2028(b) | 200,000 | 197,250 | ||||||
GCP Applied Technologies, Inc., Sr. Unsec. Gtd. Notes, 5.50%, 04/15/2026(b) | 389,000 | 393,862 | ||||||
Huntsman International LLC, Sr. Unsec. Global Notes, 4.50%, 05/01/2029 | 6,387,000 | 6,295,006 | ||||||
Platform Specialty Products Corp., Sr. Unsec. Gtd. Notes, 5.88%, 12/01/2025(b) | 258,000 | 262,355 | ||||||
PolyOne Corp., Sr. Unsec. Global Notes, 5.25%, 03/15/2023 | 183,000 | 188,033 | ||||||
PQ Corp., Sr. Sec. Gtd. First Lien Notes, 6.75%, 11/15/2022(b) | 93,000 | 97,041 | ||||||
7,619,172 | ||||||||
Steel-0.11% | ||||||||
ArcelorMittal (Luxembourg), Sr. Unsec. Global Notes, 7.00%, 10/15/2039 | 230,000 | 252,855 | ||||||
Cleveland-Cliffs, Inc., Sr. Unsec. Gtd. Global Notes, 5.75%, 03/01/2025 | 519,000 | 508,620 | ||||||
POSCO (South Korea), Sr. Unsec. Notes, 4.00%, 08/01/2023(b) | 228,000 | 232,127 | ||||||
Steel Dynamics, Inc., Sr. Unsec. Gtd. Global Notes, 5.13%, 10/01/2021 | 2,592,000 | 2,609,820 | ||||||
United States Steel Corp., Sr. Unsec. Global Notes, 6.88%, 08/15/2025 | 574,000 | 568,260 |
Principal Amount | Value | |||||||
Steel-(continued) | ||||||||
Vale Canada Ltd. (Brazil), Sr. Unsec. Global Bonds, 7.20%, 09/15/2032 | $ | 200,000 | $ | 211,000 | ||||
4,382,682 | ||||||||
Systems Software-0.19% | ||||||||
Microsoft Corp., Sr. Unsec. Global Notes, 4.25%, 02/06/2047 | 245,000 | 261,294 | ||||||
VMware, Inc., Sr. Unsec. Global Notes, 2.30%, 08/21/2020 | 6,811,000 | 6,734,030 | ||||||
2.95%, 08/21/2022 | 280,000 | 274,401 | ||||||
7,269,725 | ||||||||
Technology Distributors-0.06% |
| |||||||
Avnet, Inc., Sr. Unsec. Global Notes, 4.63%, 04/15/2026 | 2,049,000 | 2,039,347 | ||||||
CDW LLC/CDW Finance Corp., Sr. Unsec. Gtd. Notes, 5.00%, 09/01/2025 | 163,000 | 165,445 | ||||||
2,204,792 | ||||||||
Technology Hardware, Storage & Peripherals-0.66% |
| |||||||
Apple Inc., Sr. Unsec. Global Notes, 4.25%, 02/09/2047 | 255,000 | 261,219 | ||||||
Dell International LLC/EMC Corp., Sr. Sec. Gtd. First Lien Notes, 4.42%, 06/15/2021(b) | 7,273,000 | 7,408,539 | ||||||
6.02%, 06/15/2026(b) | 5,674,000 | 6,022,672 | ||||||
8.35%, 07/15/2046(b) | 9,074,000 | 10,632,609 | ||||||
Sr. Unsec. Gtd. Notes, 7.13%, 06/15/2024(b) | 850,000 | 902,010 | ||||||
25,227,049 | ||||||||
Textiles-0.01% | ||||||||
Eagle Intermediate Global Holding B.V./Ruyi US Finance LLC (China), Sr. Sec. Gtd. First Lien Bonds, 7.50%, | 501,000 | 488,099 | ||||||
Thrifts & Mortgage Finance-0.01% |
| |||||||
Nationwide Building Society (United Kingdom), Unsec. Sub. Floating Rate Notes, 4.13% (5 yr. USD ICE Swap Rate + 1.85%), 10/18/2032(b)(d) | 335,000 | 305,931 | ||||||
ZAR Sovereign Capital Fund Pty. Ltd. (South Africa), Sr. Unsec. Euro Notes, 3.90%, 06/24/2020 | 200,000 | 199,829 | ||||||
505,760 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
23 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Tobacco-1.23% | ||||||||
Altria Group, Inc., Sr. Unsec. Gtd. Global Notes, 3.80%, 02/14/2024 | $ | 7,895,000 | $ | 7,900,338 | ||||
4.40%, 02/14/2026 | 6,477,000 | 6,537,529 | ||||||
4.80%, 02/14/2029 | 9,076,000 | 9,075,786 | ||||||
5.80%, 02/14/2039 | 5,269,000 | 5,266,357 | ||||||
3.88%, 09/16/2046 | 12,102,000 | 9,189,454 | ||||||
5.95%, 02/14/2049 | 4,790,000 | 4,795,056 | ||||||
6.20%, 02/14/2059 | 4,672,000 | 4,665,620 | ||||||
47,430,140 | ||||||||
Trading Companies & Distributors-0.34% |
| |||||||
Air Lease Corp., Sr. Unsec. Global Notes, 3.63%, 12/01/2027 | 340,000 | 309,810 | ||||||
BMC East, LLC, Sr. Sec. Gtd. First Lien Notes, 5.50%, 10/01/2024(b) | 481,000 | 461,159 | ||||||
BOC Aviation Ltd. (Singapore), Sr. Unsec. Floating Rate Notes, 3.95% (3 mo. USD LIBOR + 1.13%), | 10,404,000 | 10,404,000 | ||||||
H&E Equipment Services, Inc., Sr. Unsec. Gtd. Global Notes, 5.63%, 09/01/2025 | 271,000 | 269,306 | ||||||
Herc Rentals, Inc., Sec. Gtd. Second Lien Notes, 7.75%, 06/01/2024(b) | 419,000 | 448,979 | ||||||
United Rentals North America, Inc., Sr. Unsec. Gtd. Global Notes, 5.50%, 07/15/2025 | 130,000 | 133,250 | ||||||
6.50%, 12/15/2026 | 130,000 | 136,013 | ||||||
Sr. Unsec. Gtd. Notes, 5.88%, 09/15/2026 | 340,000 | 349,350 | ||||||
5.50%, 05/15/2027 | 722,000 | 723,805 | ||||||
13,235,672 | ||||||||
Trucking-0.51% | ||||||||
Avis Budget Car Rental LLC/Avis Budget Finance, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 03/15/2025(b) | 304,000 | 289,940 | ||||||
DAE Funding LLC (United Arab Emirates), Sr. Unsec. Gtd. Notes, 4.00%, 08/01/2020(b) | 6,449,000 | 6,449,000 | ||||||
Penske Truck Leasing Co., L.P./PTL Finance Corp., Sr. Unsec. Notes, 3.90%, 02/01/2024(b) | 500,000 | 497,384 | ||||||
SMBC Aviation Capital Finance DAC (Ireland), Sr. Unsec. Gtd. Notes, 3.00%, 07/15/2022(b) | 4,160,000 | 4,065,207 | ||||||
4.13%, 07/15/2023(b) | 8,347,000 | 8,462,600 | ||||||
19,764,131 |
Principal Amount | Value | |||||||
Wireless Telecommunication Services-2.81% |
| |||||||
Axiata SPV2 Bhd. (Malaysia), REGS, Sr. Unsec. Medium-Term Euro Notes, 4.36%, 03/24/2026(b) | $ | 200,000 | $ | 201,097 | ||||
Bharti Airtel Ltd. (India), REGS, Sr. Unsec. Euro Notes, 4.38%, 06/10/2025(b) | 200,000 | 186,999 | ||||||
Digicel Group One Ltd. (Jamaica), Sr. Sec. Sub. First Lien Notes, 8.25%, 12/30/2022(b) | 130,000 | 87,425 | ||||||
Digicel Group Two Ltd. (Jamaica), Sr. Unsec. Sub. Notes, 8.25%, 09/30/2022(b) | 124,000 | 53,320 | ||||||
Empresa Nacional de Telecomunicaciones S.A. (Chile), REGS, Sr. Unsec. Euro Notes, 4.88%, 10/30/2024(b) | 700,000 | 714,029 | ||||||
Oztel Holdings SPC Ltd. (Oman), Sr. Sec. Gtd. Bonds, 6.63%, | 12,396,000 | 12,161,145 | ||||||
Sr. Sec. Gtd. Notes, 5.63%, 10/24/2023(b) | 11,655,000 | 11,744,977 | ||||||
SixSigma Networks Mexico, S.A. de C.V. (Mexico), Sr. Unsec. Gtd. Notes, 7.50%, 05/02/2025(b) | 325,000 | 315,250 | ||||||
Sprint Communications, Inc., Sr. Unsec. Global Notes, 11.50%, 11/15/2021 | 140,000 | 163,772 | ||||||
Sr. Unsec. Gtd. Notes, 7.00%, 03/01/2020(b) | 105,000 | 108,675 | ||||||
Sprint Corp., Sr. Unsec. Gtd. Global Notes, 7.25%, 09/15/2021 | 179,000 | 189,516 | ||||||
7.63%, 02/15/2025 | 149,000 | 156,450 | ||||||
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC,Class A-1, Sr. Sec. Gtd. First Lien Asset-Backed Notes, 3.36%, 09/20/2021(b) | 18,623,000 | 18,576,443 | ||||||
Sr. Sec. Gtd. First Lien Notes, 4.74%, 03/20/2025(b) | 29,781,000 | 29,892,679 | ||||||
5.15%, 03/20/2028(b) | 30,339,000 | 30,642,390 | ||||||
T-Mobile USA, Inc., Sr. Unsec. Gtd. Global Bonds, 6.50%, 01/15/2026 | 1,661,000 | 1,777,270 | ||||||
Sr. Unsec. Gtd. Global Notes, 6.38%, 03/01/2025 | 962,000 | 1,003,486 | ||||||
107,974,923 | ||||||||
Total U.S. Dollar Denominated Bonds & Notes (Cost $1,775,072,395) |
| 1,750,670,444 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
24 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Asset-Backed Securities-17.71% |
| |||||||
Adjustable Rate Mortgage Trust, Series2004-2, Class 6A1, Variable Rate Pass Through Ctfs., 4.48%, 02/25/2035(i) | $ | 1,458,049 | $ | 1,466,617 | ||||
Series2005-1, Class 4A1, Variable Rate Pass Through Ctfs., 4.40%, 05/25/2035(i) | 1,180,997 | 1,180,684 | ||||||
Angel Oak Mortgage Trust, LLC, Series2017-3, Class A1, Variable Rate Pass Through Ctfs., 2.71%, 11/25/2047(b)(i) | 3,397,514 | 3,383,997 | ||||||
Series2018-1, Class A1, Variable Rate Pass Through Ctfs., 3.26%, 04/27/2048(b)(i) | 11,921,635 | 11,909,960 | ||||||
Avery Point VI CLO Ltd., Series2015-6A, Class AR, Floating Rate Pass Through Ctfs., 3.78% (3 mo. USD LIBOR + 1.05%), 08/05/2027(b)(d) | 23,491,000 | 23,409,416 | ||||||
Banc of America Commercial Mortgage Trust, Series 2015-UBS7, Class AS, Variable Rate Pass Through Ctfs., 3.99%, 09/15/2048(i) | 4,394,000 | 4,461,101 | ||||||
Bear Stearns Adjustable Rate Mortgage Trust, Series2003-6, Class 1A3, Variable Rate Pass Through Ctfs., 4.38%, 08/25/2033(i) | 149,525 | 149,209 | ||||||
Series2004-10, Class 21A1, Variable Rate Pass Through Ctfs., 4.53%, 01/25/2035(i) | 617,249 | 623,573 | ||||||
Series2006-1, Class A1, Floating Rate Pass Through Ctfs., 4.91% (1 yr. U.S. Treasury Yield Curve Rate + 2.25%), 02/25/2036(d) | 604,552 | 610,917 | ||||||
Bear StearnsALT-A Trust, Series2004-11, Class 2A3, Variable Rate Pass Through Ctfs., 4.28%, 11/25/2034(i) | 2,166,896 | 2,140,675 | ||||||
BX Trust, Series 2017-SLCT, Class A, Floating Rate Pass Through Ctfs., 3.41% (1 mo. USD LIBOR + 0.92%), 07/15/2034(b)(d) | 6,522,410 | 6,512,199 | ||||||
CAL Funding III Ltd., Series2018-2A, Class A, Pass Through Ctfs., 4.34%, 09/25/2043(b) | 9,104,167 | 9,263,106 | ||||||
CFCRE Commercial Mortgage Trust, Series2011-C2, Class C, Variable Rate Pass Through Ctfs., 5.76%, 12/15/2047(b)(i) | 5,000,000 | 5,284,269 |
Principal Amount | Value | |||||||
CGDBB Commercial Mortgage Trust, Series 2017-BIOC, Class A, Floating Rate Pass Through Ctfs., 3.28% (1 mo. USD LIBOR + 0.79%), 07/15/2032(b)(d) | $ | 12,581,000 | $ | 12,574,751 | ||||
Series 2017-BIOC, Class B, Floating Rate Pass Through Ctfs., 3.46% (1 mo. USD LIBOR + 0.97%), | 4,250,000 | 4,245,169 | ||||||
Series 2017-BIOC, Class C, Floating Rate Pass Through Ctfs., 3.54% (1 mo. USD LIBOR + 1.05%), | 17,124,000 | 16,999,322 | ||||||
Series 2017-BIOC, Class D, Floating Rate Pass Through Ctfs., 4.09% (1 mo. USD LIBOR + 1.60%), | 4,973,000 | 4,989,768 | ||||||
CGRBS Commercial Mortgage Trust, Series 2013-VN05, Class A, Pass Through Ctfs., 3.37%, 03/13/2035(b) | 1,647,256 | 1,669,746 | ||||||
Chase Mortgage Trust, Series2016-1, Class M3, Variable Rate Pass Through Ctfs., 3.75%, 04/25/2045(b)(i) | 2,738,868 | 2,725,455 | ||||||
Series2016-2, Class M2, Variable Rate Pass Through Ctfs., 3.75%, 12/25/2045(b)(i) | 10,721,805 | 10,766,302 | ||||||
Series2016-2, Class M3, Variable Rate Pass Through Ctfs., 3.75%, 12/25/2045(b)(i) | 4,771,023 | 4,716,111 | ||||||
Citigroup Commercial Mortgage Trust, Series2012-GC8, Class B, Pass Through Ctfs., 4.29%, 09/10/2045(b) | 1,300,000 | 1,325,745 | ||||||
Series 2013-GC11, Class D, Variable Rate Pass Through Ctfs., 4.42%, 04/10/2023(b)(i) | 752,554 | 751,914 | ||||||
Series 2015-GC27, Class A5, Pass Through Ctfs., 3.14%, 02/10/2048 | 1,233,335 | 1,227,154 | ||||||
Citigroup Mortgage Loan Trust, Inc., Series 2004-HYB3, Class 2A, Variable Rate Pass Through Ctfs., 3.97%, 09/25/2034(i) | 1,551,475 | 1,504,924 | ||||||
Series 2004-UST1, Class A4, Variable Rate Pass Through Ctfs., 4.30%, 08/25/2034(i) | 440,468 | 430,012 | ||||||
COLT Mortgage Loan Trust, Series2018-1, Class A1, Variable Rate Pass Through Ctfs., 2.93%, 02/25/2048(b)(i) | 4,883,849 | 4,859,128 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
25 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Commercial Mortgage Trust, Series2013-SFS, Class A1, Pass Through Ctfs., 1.87%, 04/12/2035(b) | $ | 385,956 | $ | 376,845 | ||||
Series 2015-CR25, Class B, Variable Rate Pass Through Ctfs., 4.54%, 08/10/2048(i) | 5,267,000 | 5,429,424 | ||||||
Series2016-GCT, Class B, Pass Through Ctfs., 3.09%, 08/10/2029(b) | 4,595,000 | 4,538,048 | ||||||
Series2016-GCT, Class C, Variable Rate Pass Through Ctfs., 3.46%, 08/10/2029(b)(i) | 2,115,000 | 2,095,454 | ||||||
Countrywide Home Loans Mortgage Pass Through Trust, Series2007-13, Class A10, Pass Through Ctfs., 6.00%, 08/25/2037 | 339,041 | 277,621 | ||||||
Credit Suisse First Boston Mortgage Securities Corp., Series2004-AR5, Class 3A1, Variable Rate Pass Through Ctfs., 4.31%, 06/25/2034(i) | 1,826,887 | 1,844,181 | ||||||
CSAIL Commercial Mortgage Trust, Series2015-C3, Class A4, Pass Through Ctfs., 3.72%, 08/15/2048 | 1,125,283 | 1,147,303 | ||||||
CSWF, Series2018-TOP, Class B, Floating Rate Pass Through Ctfs., 3.79% (1 mo. USD LIBOR + 1.30%), 08/15/2035(b)(d) | 12,819,000 | 12,807,146 | ||||||
DB Master Finance LLC, Series2015-1A, Class A2II, Pass Through Ctfs., 3.98%, 02/20/2045(b) | 14,302,080 | 14,370,936 | ||||||
DBUBS Mortgage Trust, Series 2011-LC1A, Class E, Variable Rate Pass Through Ctfs., 5.70%, 11/10/2046(b)(i) | 638,333 | 661,147 |
Principal Amount | Value | |||||||
Deephaven Residential Mortgage Trust, Series2017-2A, Class A2, Variable Rate Pass Through Ctfs., 2.61%, 06/25/2047(b)(i) | $ | 824,633 | $ | 815,516 | ||||
Series2017-2A, Class A3, Variable Rate Pass Through Ctfs., 2.71%, 06/25/2047(b)(i) | 891,712 | 881,963 | ||||||
Series2017-3A, Class A1, Variable Rate Pass Through Ctfs., 2.58%, 10/25/2047(b)(i) | 7,437,333 | 7,405,100 | ||||||
Series2017-3A, Class A2, Variable Rate Pass Through Ctfs., 2.71%, 10/25/2047(b)(i) | 2,066,172 | 2,060,572 | ||||||
Series2018-1A, Class A1, Variable Rate Pass Through Ctfs., 2.98%, 12/25/2057(b)(i) | 10,498,294 | 10,460,538 | ||||||
Deutsche Mortgage Securities IncRe-REMIC Trust Certificates, Series2007-WM1, Class A1, Variable Rate Pass Through Ctfs., 3.66%, 06/27/2037(b)(i) | 7,160,809 | 7,255,817 | ||||||
First Horizon Alternative Mortgage Securities Trust, Series2005-FA8, Class 2A1, Pass Through Ctfs., 5.00%, 11/25/2020 | 61,308 | 61,393 | ||||||
Galton Funding Mortgage Trust, Series2018-1, Class A43, Variable Rate Pass Through Ctfs., 3.50%, 11/25/2057(b)(i) | 5,996,122 | 6,003,785 | ||||||
GMACM Mortgage Loan Trust, Series2006-AR1, Class 1A1, Variable Rate Pass Through Ctfs., 4.27%, 04/19/2036(i) | 742,825 | 669,212 | ||||||
GS Mortgage Securities Corp II, Series 2013-KING, Class A, Pass Through Ctfs., 2.71%, 12/10/2027(b) | 1,364,981 | 1,361,692 | ||||||
GS Mortgage Securities Trust, Series2013-G1, Class A1, Pass Through Ctfs., 2.06%, 04/10/2031(b) | 701,717 | 689,922 | ||||||
GSR Mortgage Loan Trust, Series2005-AR6, Class 3A2, Variable Rate Pass Through Ctfs., 4.12%, 09/25/2035(i) | 287,947 | 288,145 | ||||||
Harborview Mortgage Loan Trust, Series2005-9, Class 2A1C, Floating Rate Pass Through Ctfs., 2.93% (1 mo. USD LIBOR + 0.45%), 06/20/2035(d) | 26,065 | 26,229 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
26 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Hertz Vehicle Financing II L.P., Series2015-1A, Class A, Pass Through Ctfs., 2.73%, 03/25/2021(b) | $ | 13,789,000 | $ | 13,733,066 | ||||
Series2018-1A, Class A, Pass Through Ctfs., 3.29%, 02/25/2024(b) | 8,320,000 | 8,221,783 | ||||||
Series2018-1A, Class C, Pass Through Ctfs., 4.39%, 02/25/2024(b) | 3,217,000 | 3,155,516 | ||||||
Series2019-1A, Class A, Pass Through Ctfs., 3.71%, 03/25/2023(b) | 13,100,000 | 13,157,230 | ||||||
Series2019-1A, Class B, Pass Through Ctfs., 4.10%, 03/25/2023(b) | 12,500,000 | 12,563,106 | ||||||
Series2019-1A, Class C, Pass Through Ctfs., 4.99%, 03/25/2023(b) | 4,000,000 | 4,020,936 | ||||||
HMH Trust, Series2017-NSS, Class A, Pass Through Ctfs., 3.06%, 07/05/2031(b) | 9,500,000 | 9,339,636 | ||||||
Home Partners of America Trust, Series2018-1, Class A, Floating Rate Pass Through Ctfs., 3.38% (1 mo. USD LIBOR + 0.90%), 07/17/2037(b)(d) | 8,174,100 | 8,159,550 | ||||||
Series2018-1, Class B, Floating Rate Pass Through Ctfs., 3.58% (1 mo. USD LIBOR + 1.10%), | 7,990,000 | 7,926,487 | ||||||
Series2018-1, Class C, Floating Rate Pass Through Ctfs., 3.73% (1 mo. USD LIBOR + 1.25%), | 3,610,000 | 3,575,375 | ||||||
ICG US CLO Ltd., Series2016-1A, Class A1R, Floating Rate Pass Through Ctfs., 3.89% (3 mo. USD LIBOR + 1.14%), | 11,399,000 | 11,341,967 | ||||||
InTown Hotel Portfolio Trust, Series 2018-STAY, Class A, Floating Rate Pass Through Ctfs., 3.19% (1 mo. USD LIBOR + 0.70%), | 15,995,000 | 15,883,948 | ||||||
Series 2018-STAY, Class B, Floating Rate Pass Through Ctfs., 3.54% (1 mo. USD LIBOR + 1.05%), | 8,640,000 | 8,557,429 |
Principal Amount | Value | |||||||
Invitation Homes Trust, Series 2017-SFR2, Class A, Floating Rate Pass Through Ctfs., 3.33% (1 mo. USD LIBOR + 0.85%), 12/17/2036(b)(d) | $ | 5,994,738 | $ | 6,004,109 | ||||
Series 2017-SFR2, Class B, Floating Rate Pass Through Ctfs., 3.63% (1 mo. USD LIBOR + 1.15%), | 3,221,000 | 3,217,547 | ||||||
Series 2017-SFR2, Class C, Floating Rate Pass Through Ctfs., 3.93% (1 mo. USD LIBOR + 1.45%), | 6,188,000 | 6,197,869 | ||||||
Series 2017-SFR2, Class D, Floating Rate Pass Through Ctfs., 4.28% (1 mo. USD LIBOR + 1.80%), | 4,706,000 | 4,737,212 | ||||||
Series 2018-SFR1, Class A, Floating Rate Pass Through Ctfs., 3.18% (1 mo. USD LIBOR + 0.70%), | 31,589,079 | 31,186,302 | ||||||
Jimmy Johns Funding LLC, Series2017-1A, Class A2I, Pass Through Ctfs., 3.61%, 07/30/2047(b) | 16,872,651 | 16,734,474 | ||||||
Series2017-1A, Class A2II, Pass Through Ctfs., 4.85%, 07/30/2047(b) | 9,160,500 | 9,261,214 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series2012-LC9, Class B, Variable Rate Pass Through Ctfs., 3.81%, 12/15/2047(b)(i) | 5,000,000 | 5,052,923 | ||||||
JP Morgan Mortgage Trust, Series2005-A3, Class 1A1, Variable Rate Pass Through Ctfs., 4.14%, 06/25/2035(i) | 737,690 | 730,675 | ||||||
Series2005-A3, Class 6A5, Variable Rate Pass Through Ctfs., 3.87%, 06/25/2035(i) | 799,170 | 806,409 | ||||||
Series2005-A5, Class 1A2, Variable Rate Pass Through Ctfs., 4.25%, 08/25/2035(d) | 767,610 | 778,434 | ||||||
Series2005-A6, Class 7A1, Variable Rate Pass Through Ctfs., 4.35%, 08/25/2035(i) | 602,155 | 590,493 | ||||||
Series2007-A4, Class 3A1, Variable Rate Pass Through Ctfs., 3.70%, 06/25/2037(i) | 951,962 | 887,736 | ||||||
Series 20153, Class B2, Variable Rate Pass Through Ctfs., 3.68%, 05/25/2045(b)(i) | 9,150,640 | 9,102,184 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
27 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
JPMBB Commercial Mortgage Securities Trust, Series2013-C17, Class C, Variable Rate Pass Through Ctfs., 4.89%, 01/15/2047(i) | $ | 12,750,000 | $ | 13,249,915 | ||||
Series2015-C31, Class A3, Pass Through Ctfs., 3.80%, 08/15/2048 | 1,064,445 | 1,092,929 | ||||||
Series2016-C1, Class B, Variable Rate Pass Through Ctfs., 4.74%, 03/15/2049(i) | 5,083,000 | 5,348,110 | ||||||
Lehman Mortgage Trust, Series2006-1, Class 3A5, Pass Through Ctfs., 5.50%, 02/25/2036 | 258,851 | 244,846 | ||||||
MAD Mortgage Trust, Series 2017-330M, Class A, Variable Rate Pass Through Ctfs., 3.29%, 08/15/2034(b)(i) | 11,633,000 | 11,576,801 | ||||||
Merrill Lynch Mortgage Investors Trust, Series2005-3, Class 3A, Floating Rate Pass Through Ctfs., 4.24% (1 mo. USD LIBOR + 0.25%), 11/25/2035(d) | 1,024,115 | 1,032,577 | ||||||
Series2005-A5, Class A9, Variable Rate Pass Through Ctfs., 3.99%, 06/25/2035(i) | 1,344,479 | 1,345,250 | ||||||
Morgan Stanley Capital I Trust, Series 2006-HQ10, Class AJ, Variable Rate Pass Through Ctfs., 5.39%, 11/12/2041(i) | 49,977 | 49,864 | ||||||
Series 2014-150E, Class C, Variable Rate Pass Through Ctfs., 4.30%, 09/09/2032(b)(i) | 3,350,000 | 3,430,401 | ||||||
Series2017-CLS, Class A, Floating Rate Pass Through Ctfs., 3.19% (1 mo. USD LIBOR + 0.70%), | 18,372,000 | 18,261,221 | ||||||
Series2017-CLS, Class B, Floating Rate Pass Through Ctfs., 3.34% (1 mo. USD LIBOR + 0.85%), | 9,024,000 | 8,941,692 | ||||||
Series2017-CLS, Class C, Floating Rate Pass Through Ctfs., 3.49% (1 mo. USD LIBOR + 1.00%), | 6,124,000 | 6,041,575 | ||||||
Natixis Commercial Mortgage Securities Trust, Series 2018-285M, Class E, Variable Rate Pass Through Ctfs., 3.79%, | 6,250,000 | 6,120,337 | ||||||
OCP CLO Ltd., Series2014-7A, Class A1RR, Floating Rate Pass Through Ctfs., 3.88% (3 mo. USD LIBOR + 1.12%), | 17,619,000 | 17,502,556 |
Principal Amount | Value | |||||||
Provident Home Equity Loan Trust, Series2000-2, Class A1, Floating Rate Pass Through Ctfs., 3.03% (1 mo. USD LIBOR + 0.54%), 08/25/2031(d) | $ | 168,980 | $ | 146,470 | ||||
Residential Funding Mortgage Sec I Trust, Series2005-S9, Class A10, Pass Through Ctfs., 6.25%, 12/25/2035 | 1,001,778 | 954,296 | ||||||
Sequoia Mortgage Trust, Series2013-3, Class A1, Variable Rate Pass Through Ctfs., 2.00%, 03/25/2043(i) | 1,511,255 | 1,409,283 | ||||||
Series2013-4, Class A3, Variable Rate Pass Through Ctfs., 1.55%, 04/25/2043(i) | 1,193,913 | 1,116,994 | ||||||
Series2013-7, Class A2, Variable Rate Pass Through Ctfs., 3.00%, 06/25/2043(i) | 1,287,089 | 1,248,633 | ||||||
Shellpoint Asset Funding Trust, Series2013-1, Class A3, Variable Rate Pass Through Ctfs., 3.75%, 07/25/2043(b)(i) | 2,104,664 | 2,085,349 | ||||||
Specialty Underwriting & Residential Finance Trust, Series2004-BC2, Class A2, Floating Rate Pass Through Ctfs., 3.03% (1 mo. USD LIBOR + 0.54%), | 41,645 | 39,309 | ||||||
Starwood Waypoint Homes Trust, Series2017-1, Class D, Floating Rate Pass Through Ctfs., 4.44% (1 mo. USD LIBOR + 1.95%), | 16,580,000 | 16,597,442 | ||||||
Structured Adjustable Rate Mortgage Loan Trust, Series2004-12, Class 3A2, Variable Rate Pass Through Ctfs., 4.47%, 09/25/2034(i) | 1,032,749 | 1,023,495 | ||||||
Series2004-8, Class 3A, Variable Rate Pass Through Ctfs., 4.39%, 07/25/2034(i) | 1,452,880 | 1,448,120 | ||||||
Suntrust Alternative Loan Trust, Series2005-1F, Class 2A8, Pass Through Ctfs., 6.00%, 12/25/2035 | 241,500 | 238,477 | ||||||
Thornburg Mortgage Securities Trust, Series2003-6, Class A2, Floating Rate Pass Through Ctfs., 2.99% (1 mo. USD LIBOR + 0.50%), 12/25/2033(d) | 643,036 | 599,071 | ||||||
Series2005-1, Class A3, Variable Rate Pass Through Ctfs., 4.38%, 04/25/2045(i) | 1,325,406 | 1,339,414 | ||||||
Series2005-2, Class A1, Variable Rate Pass Through Ctfs., 3.78%, 07/25/2045(d) | 1,638,972 | 1,613,019 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
28 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Thunderbolt II Aircraft Lease Ltd. (Cayman Islands), Series2018-A, Class A, Pass Through Ctfs., 4.15%, 09/15/2038(b)(i)(j) | $ | 10,915,179 | $ | 11,006,946 | ||||
Series2018-A, Class B, Pass Through Ctfs., 5.07%, 09/15/2038(b)(i)(j) | 8,459,506 | 8,439,937 | ||||||
Towd Point Mortgage Trust, Series2017-2, Class A1, Variable Rate Pass Through Ctfs., 2.75%, 04/25/2057(b)(i) | 5,137,744 | 5,039,757 | ||||||
Triton Container Finance VI LLC, Series2018-2A, Class A, Pass Through Ctfs., 4.19%, 06/22/2043(b) | 10,233,067 | 10,342,632 | ||||||
UBS-Barclays Commercial Mortgage Trust, Series2012-C3, Class A4, Pass Through Ctfs., 3.09%, 08/10/2049 | 264,769 | 265,016 | ||||||
Series2012-C4, Class A5, Pass Through Ctfs., 2.85%, 12/10/2045 | 532,433 | 528,327 | ||||||
UBS-Citigroup Commercial Mortgage Trust, Series2011-C1, Class C, Variable Rate Pass Through Ctfs., 6.05%, 01/10/2045(b)(i) | 4,500,000 | 4,789,766 | ||||||
Verus Securitization Trust, Series2018-1, Class A1, Variable Rate Pass Through Ctfs., 2.93%, 02/25/2048(b)(i) | 12,787,483 | 12,736,369 | ||||||
Series2018-3, Class A1, Variable Pass Through Ctfs., 4.11%, 10/25/2058(b)(i) | 7,079,488 | 7,126,953 | ||||||
Series2019-1, Class A1, Variable Pass Through Ctfs., 3.84%, 02/25/2059(b)(i) | 21,736,000 | 21,762,896 | ||||||
WaMu Mortgage Pass Through Trust, Series2007-HY2, Class 2A2, Variable Rate Pass Through Ctfs., 4.15%, 11/25/2036(i) | 696,352 | 658,925 |
Principal Amount | Value | |||||||
Wells Fargo Mortgage Backed Securities Trust, Series2003-J, Class 2A1, Variable Rate Pass Through Ctfs., 4.58%, 10/25/2033(i) | $ | 518,774 | $ | 525,833 | ||||
Series2004-Z, Class 2A1, Variable Rate Pass Through Ctfs., 4.97%, 12/25/2034(i) | 289,304 | 295,514 | ||||||
Series 2005-AR14, Class A1, Variable Rate Pass Through Ctfs., 4.55%, 08/25/2035(i) | 386,765 | 394,815 | ||||||
Series 2005-AR16, Class 4A8, Variable Rate Pass Through Ctfs., 4.50%, 10/25/2035(i) | 4,620,000 | 4,701,360 | ||||||
Series2005-AR2, Class 2A2, Variable Rate Pass Through Ctfs., 5.14%, 03/25/2035(i) | 867,293 | 892,814 | ||||||
Series2006-AR8, Class 1A3, Variable Rate Pass Through Ctfs., 4.66%, 04/25/2036(i) | 433,576 | 434,521 | ||||||
Wendy’s Funding LLC, Series2018-1A, Class A2II, Pass Through Ctfs., 3.88%, 03/15/2048(b) | 11,137,500 | 10,786,557 | ||||||
WFRBS Commercial Mortgage Trust, Series2011-C5, Class B, Variable Rate Pass Through Ctfs., 5.67%, 11/15/2044(b)(i) | 5,000,000 | 5,259,613 | ||||||
Series2012-C6, Class B, Pass Through Ctfs., 4.70%, 04/15/2045 | 5,739,000 | 5,909,714 | ||||||
Series2012-C9, Class D, Variable Rate Pass Through Ctfs., 4.78%, 10/15/2022(b)(i) | 568,832 | 559,077 | ||||||
Series2013-C14, Class A5, Pass Through Ctfs., 3.34%, 06/15/2046 | 1,485,143 | 1,500,510 | ||||||
Series2013-C15, Class B, Variable Rate Pass Through Ctfs., 4.47%, 08/15/2046(i) | 3,800,000 | 3,935,725 | ||||||
Series2013-C16, Class B, Variable Rate Pass Through Ctfs., 5.04%, 09/15/2046(i) | 3,127,000 | 3,329,442 | ||||||
Total Asset-Backed Securities | 680,953,288 | |||||||
U.S. Treasury Securities-15.76% |
| |||||||
U.S. Treasury Bills-0.36% | ||||||||
2.40% - 2.43%, | 13,905,000 | 13,795,899 | ||||||
U.S. Treasury Bonds-3.69% |
| |||||||
3.38%, 11/15/2048 | 134,081,600 | 141,778,197 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
29 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
U.S. Treasury Notes-11.71% |
| |||||||
2.50%, 01/31/2021 | $ | 13,073,800 | $ | 13,067,672 | ||||
2.50%, 02/15/2022 | 18,091,400 | 18,094,933 | ||||||
2.50%, 01/31/2024 | 177,039,100 | 176,869,668 | ||||||
2.38%, 02/29/2024 | 11,898,000 | 11,819,455 | ||||||
2.63%, 01/31/2026 | 37,287,300 | 37,313,517 | ||||||
2.63%, 02/15/2029 | 194,728,300 | 193,142,330 | ||||||
450,307,575 | ||||||||
Total U.S. Treasury Securities (Cost $609,146,559) | 605,881,671 | |||||||
U.S. Government Sponsored Agency Mortgage-Backed Securities-12.88% |
| |||||||
Collateralized Mortgage Obligations-0.03% |
| |||||||
Fannie Mae REMICs, IO 7.00%, 05/25/2033 | 7,742 | 1,560 | ||||||
6.00%, 07/25/2033 | 6,999 | 1,624 | ||||||
Freddie Mac Multifamily Securitization, 1.16%, , 03/25/2024(i) | 24,784,291 | 1,201,280 | ||||||
1,204,464 | ||||||||
Federal Home Loan Mortgage Corp. (FHLMC)-3.56% |
| |||||||
Pass Through Ctfs., 6.00%, 07/01/2019 to 02/01/2034 | 296,942 | 320,181 | ||||||
7.00%, 07/01/2019 to 10/01/2034 | 861,746 | 946,474 | ||||||
3.50%, 08/01/2026 | 596,585 | 607,622 | ||||||
7.50%, 05/01/2030 to 05/01/2035 | 764,461 | 868,880 | ||||||
8.50%, 08/01/2031 | 38,928 | 46,066 | ||||||
3.00%, 02/01/2032 | 2,503,783 | 2,502,242 | ||||||
6.50%, 07/01/2032 to 09/01/2036 | 326,968 | 361,335 | ||||||
8.00%, 08/01/2032 | 34,562 | 40,285 | ||||||
5.50%, 01/01/2034 to 07/01/2040 | 2,124,014 | 2,280,125 | ||||||
5.00%, 07/01/2034 to 06/01/2040 | 2,616,099 | 2,805,171 | ||||||
4.50%, 02/01/2040 to 10/01/2046 | 29,051,691 | 30,570,115 | ||||||
Floating Rate Pass Through Ctfs., ARM, 5.00%, (1 yr. USD LIBOR + 2.00%), 12/01/2036(d) | 75,225 | 79,637 | ||||||
4.70%, (1 yr. USD LIBOR + 2.06%), 02/01/2037(d) | 17,181 | 18,206 | ||||||
4.39%, (1 yr. USD LIBOR + 1.88%), 05/01/2037(d) | 137,516 | 144,800 | ||||||
Series K730, Class AM, IO, Variable Rate Pass Through Ctfs., 3.59%, , 01/25/2025(i) | 7,859,000 | 8,079,198 | ||||||
Series K731, Class A2, Pass Through Ctfs., 3.60%, , 02/25/2025(i) | 18,951,000 | 19,568,117 |
Principal Amount | Value | |||||||
Federal Home Loan Mortgage Corp. (FHLMC)-(continued) |
| |||||||
Series K062, Class A1, Pass Through Ctfs., 3.03%, , 09/25/2026 | $ | 18,348,796 | $ | 18,455,687 | ||||
Series K087, Class A1, Pass Through Ctfs., 3.59%, 10/25/2027 | 20,100,437 | 20,649,259 | ||||||
3.77%, 12/25/2028 | 16,541,600 | 17,237,323 | ||||||
Series K071, Class A2, Pass Through Ctfs., 3.29%, , 11/25/2027 | 11,136,000 | 11,205,468 | ||||||
136,786,191 | ||||||||
Federal National Mortgage Association (FNMA)-7.51% |
| |||||||
Pass Through Ctfs., 5.50%, 03/01/2021 to 06/01/2040 | 1,518,674 | 1,650,419 | ||||||
7.50%, 03/01/2021 to 08/01/2037 | 666,341 | 757,138 | ||||||
6.00%, 03/01/2022 to 10/01/2039 | 25,835 | 27,367 | ||||||
6.50%, 07/01/2028 to 01/01/2037 | 113,635 | 125,760 | ||||||
7.00%, 07/01/2029 to 02/01/2034 | 480,770 | 530,259 | ||||||
9.50%, 04/01/2030 | 8,301 | 9,281 | ||||||
3.50%, 12/01/2030 to 11/01/2046 | 36,916,072 | 37,172,042 | ||||||
8.50%, 10/01/2032 | 65,344 | 78,364 | ||||||
8.00%, 04/01/2033 | 62,248 | 73,069 | ||||||
5.00%, 12/01/2039 | 692,934 | 742,206 | ||||||
3.00%, 08/01/2043 | 3,900,480 | 3,832,543 | ||||||
4.50%, 10/01/2048 | 49,420,922 | 51,196,242 | ||||||
Pass Through Ctfs., TBA, 2.50%, 03/01/2034(m) | 40,620,000 | 39,832,194 | ||||||
3.50%, 03/01/2034 to 03/01/2049(m) | 81,500,000 | 82,122,996 | ||||||
Floating Rate Pass Through Ctfs., ARM, 4.45%, (1 yr. U.S. Treasury Yield Curve Rate + 2.20%), 05/01/2035(d) | 197,947 | 208,071 | ||||||
4.73%, (1 yr. USD LIBOR + 1.67%), 01/01/2037(d) | 81,516 | 85,574 | ||||||
4.19%, (1 yr. USD LIBOR + 1.73%), 03/01/2038(d) | 56,711 | 59,449 | ||||||
Series CA2774, Pass Through Ctfs., 4.00%,, 12/01/2048 | 35,342,991 | 36,307,487 | ||||||
Series BN0332, Pass Through Ctfs., 4.00%,, 12/01/2048 | 32,998,214 | 33,898,757 | ||||||
288,709,218 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
30 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Government National Mortgage Association |
| |||||||
Pass Through Ctfs., 7.50%, 06/15/2023 to 05/15/2032 | $ | 15,479 | $ | 16,109 | ||||
9.00%, 09/15/2024 to 10/15/2024 | 9,057 | 9,085 | ||||||
8.50%, 02/15/2025 | 4,804 | 4,817 | ||||||
8.00%, 08/15/2025 to 09/15/2026 | 28,731 | 29,576 | ||||||
6.56%, 01/15/2027 | 116,779 | 128,369 | ||||||
7.00%, 10/15/2028 to 09/15/2032 | 249,402 | 275,482 | ||||||
6.00%, 11/15/2028 to 02/15/2033 | 67,576 | 74,279 | ||||||
6.50%, 01/15/2029 to 09/15/2034 | 135,759 | 149,270 | ||||||
5.50%, 06/15/2035 | 62,623 | 68,617 | ||||||
5.00%, 07/15/2035 to 08/15/2035 | 55,318 | 57,621 | ||||||
4.00%, 03/20/2048 | 9,285,128 | 9,605,460 | ||||||
Floating Rate Pass Through Ctfs., ARM, 3.38%, (1 yr. U.S. Treasury Yield Curve Rate + 1.50%), 01/20/2025(d) | 25,717 | 26,339 | ||||||
3.63%, (1 yr. U.S. Treasury Yield Curve Rate + 1.50%), 05/20/2025(d) | 8,473 | 8,681 | ||||||
3.75%, (1 yr. U.S. Treasury Yield Curve Rate + 1.50%), 06/20/2025(d) | 5,483 | 5,539 | ||||||
Pass Through Ctfs., TBA, 3.00%, , 03/01/2049(m) | 59,000,000 | 58,230,235 | ||||||
68,689,479 | ||||||||
Total U.S. Government Sponsored Agency Mortgage-Backed Securities |
| 495,389,352 | ||||||
Shares | ||||||||
Preferred Stocks-1.50% |
| |||||||
Diversified Banks-1.31% | ||||||||
Bank of America Corp., Series L, $72.50 Conv. Pfd. | 1,100 | 1,425,600 | ||||||
Wells Fargo & Co., Class A, Series L, $75.00 Conv. Pfd. | 38,152 | 48,949,016 | ||||||
50,374,616 | ||||||||
Investment Banking & Brokerage-0.17% |
| |||||||
Morgan Stanley, Series F, 6.88% Pfd. | 249,737 | 6,775,365 | ||||||
Regional Banks-0.02% | ||||||||
PNC Financial Services Group, Inc. (The), Series P, 6.13% Pfd. | 24,592 | 651,688 | ||||||
Total Preferred Stocks (Cost $57,854,372) |
| 57,801,669 |
Principal Amount | Value | |||||||||||
Agency Credit Risk Transfer Notes-0.68% |
| |||||||||||
Fannie Mae Connecticut Avenue Securities, , 5.34%, (1mo. USD LIBOR + 2.85%) 11/25/2029(d) | $ | 11,000,000 | $ | 11,464,064 | ||||||||
Freddie Mac, Series 2017-HQA2, Class M2, Floating Rate STACR® Debt Notes, 5.16%, (1 mo. USD LIBOR + 2.65%) 12/25/2029(d) | 9,000,000 | 9,300,061 | ||||||||||
Freddie Mac Whole Loan Securities Trust, Series2016-2, Class M3, Pass Through Ctfs., 3.50%, 05/25/2047 | 5,484,099 | 5,481,004 | ||||||||||
Total Agency Credit Risk Transfer Notes |
| 26,245,129 | ||||||||||
Variable Rate Senior Loan Interests-0.28%(n) |
| |||||||||||
Other Diversified Financial Services-0.28% |
| |||||||||||
Refinitiv US Holdings, Inc., Term Loan B, 6.24% (1 mo. USD LIBOR + 3.75%), 10/01/2025 (Cost $10,984,270) | 11,011,800 | 10,861,379 | ||||||||||
Non-U.S. Dollar Denominated Bonds & Notes-0.27%(o) |
| |||||||||||
Brewers-0.04% | ||||||||||||
Molson Coors International L.P., Series MPLE, Sr. Unsec. Sub. Gtd. Notes, 3.44%, 07/15/2026 | CAD | 2,000,000 | 1,466,970 | |||||||||
Sunshine Mid B.V., Sr. Sec. Gtd. First Lien Bonds, 6.50%, 05/15/2026(b) | EUR | 100,000 | 112,569 | |||||||||
1,579,539 | ||||||||||||
Diversified Banks-0.02% |
| |||||||||||
ABN AMRO Bank N.V., REGS, Jr. Unsec. Sub. Euro Bonds, 4.75%(b)(c)(d) | EUR | 200,000 | 217,662 | |||||||||
Caixabank, S.A., REGS, Jr. Unsec Sub. Euro Bonds, 6.75%(b)(c)(d) | EUR | 200,000 | 238,621 | |||||||||
Erste Group Bank AG, REGS, Jr. Unsec. Sub. Euro Bonds, 6.50%(b)(c)(d) | EUR | 200,000 | 247,916 | |||||||||
704,199 | ||||||||||||
Diversified Chemicals-0.00% |
| |||||||||||
Chemours Co. (The), Sr. Unsec. Gtd. Euro Bonds, 4.00%, 05/15/2026 | EUR | 141,000 | 160,109 | |||||||||
Food Retail-0.00% | ||||||||||||
Iceland Bondco PLC, Sr. Sec. Gtd. First Lien Notes, 4.63%, 03/15/2025(b) | GBP | 100,000 | 117,008 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
31 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||||
Integrated Telecommunication Services-0.10% |
| |||||||||
AT&T Inc., Series MPLE, Sr. Unsec. Global Notes, 5.10%, 11/25/2048 | CAD | 5,000,000 | $ | 3,758,881 | ||||||
Sovereign Debt-0.02% |
| |||||||||
Indonesia Treasury Bond, Series FR78, Sr. Unsec. Bonds, 8.25%, 05/15/2029 | IDR | 2,243,000,000 | 164,986 | |||||||
Peru Government Bond, REGS, Sr. Unsec. Bonds, 6.15%, 08/12/2032(b) | PEN | 800,000 | 250,748 | |||||||
Turkey Government International Bond, Sr. Unsec. Global Euro Notes, 4.63%, 03/31/2025 | EUR | 300,000 | 344,986 | |||||||
760,720 | ||||||||||
Steel-0.01% |
| |||||||||
Vale S.A., Sr. Unsec. Medium-Term Euro Notes, 3.75%, 01/10/2023 | EUR | 150,000 | 179,388 | |||||||
Technology Hardware, Storage & Peripherals-0.08% |
| |||||||||
Apple Inc., Series MPLE, Sr. Unsec. Sub. Bonds, 2.51%, 08/19/2024 | CAD | 4,000,000 | 3,008,990 | |||||||
TotalNon-U.S. Dollar Denominated Bonds & Notes |
| 10,268,834 | ||||||||
Municipal Obligations-0.02% |
| |||||||||
Georgia (State of) Municipal Electric Authority (Plant Vogtle Units 3 & 4 Project M) Series 2010 A, Taxable Build America RB, 6.66%, 04/01/2057 | $ | 549,000 | 622,352 |
Shares | Value | |||||||
Common Stocks & Other Equity Interests-0.00% |
| |||||||
Auto Parts & Equipment-0.00% |
| |||||||
Exide Technologies(p) | 14,555 | $ | 14,555 | |||||
Other Diversified Financial Services-0.00% |
| |||||||
iPayment Holdings, Inc.,-Wts., expiring 12/29/2022(g)(p) | 172,245 | 0 | ||||||
Paper Packaging-0.00% |
| |||||||
WestRock Co. | 65 | 2,430 | ||||||
Specialty Chemicals-0.00% |
| |||||||
Ingevity Corp.(p) | 10 | 1,152 | ||||||
Total Common Stocks & Other Equity Interests |
| 18,137 | ||||||
Money Market Funds-8.80% |
| |||||||
Invesco Government & Agency Portfolio-Institutional Class, 2.30%(q) | 118,378,968 | 118,378,968 | ||||||
Invesco Liquid Assets Portfolio- Institutional Class, 2.51%(q) | 84,536,509 | 84,561,870 | ||||||
Invesco Treasury Portfolio- Institutional Class, 2.29%(q) | 135,290,250 | 135,290,250 | ||||||
Total Money Market Funds (Cost $338,218,648) | 338,231,088 | |||||||
Options Purchased-0.11% |
| |||||||
(Cost $4,909,347)(r) | 4,076,848 | |||||||
TOTAL INVESTMENTS IN SECURITIES-103.54% |
| 3,981,020,191 | ||||||
OTHER ASSETS LESS LIABILITIES-(3.54)% |
| (135,989,621 | ) | |||||
NET ASSETS-100.00% | $ | 3,845,030,570 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
32 | Invesco Core Plus Bond Fund |
Abbreviations:
ARM | – Adjustable Rate Mortgage | |
CAD | – Canadian Dollar | |
CLO | – Collateralized Loan Obligation | |
Conv. | – Convertible | |
Ctfs. | – Certificates | |
Deb. | – Debentures | |
EUR | – Euro | |
GBP | – British Pound Sterling | |
Gtd. | – Guaranteed | |
IDR | – Indonesia Rupiah | |
IO | – Interest Only | |
Jr. | – Junior | |
LIBOR | – London Interbank Offered Rate | |
PEN | – Peru Nuevo Sol | |
Pfd. | – Preferred | |
PIK | –Pay-in-Kind | |
RB | – Revenue Bonds | |
REGS | – Regulation S | |
REIT | – Real Estate Investment Trust | |
REMICs | – Real Estate Mortgage Investment Conduits | |
Sec. | – Secured | |
Sr. | – Senior | |
STACR® | – Structured Agency Credit Risk | |
Sub. | – Subordinated | |
TBA | – To Be Announced | |
Unsec. | – Unsecured | |
Unsub. | – Unsubordinated | |
USD | – U.S. Dollar | |
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) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). 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 28, 2019 was $1,327,340,211, which represented 34.52% of the Fund’s Net Assets. |
(c) | Perpetual bond with no specified maturity date. |
(d) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2019. |
(e) | All or a portion of this security isPay-in-Kind.Pay-in-Kind securities pay interest income in the form of securities. |
(f) | Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The value of this security at February 28, 2019 represented less than 1 of the Fund’s Net Assets. |
(g) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(h) | Zero coupon bond issued at a discount. |
(i) | Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on February 28, 2019. |
(j) | Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date. |
(k) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
(l) | All or a portion of the value was pledged and/or designated as collateral to cover margin requirements for open futures contracts and swap agreements. See Note 1K and Note 1N. |
(m) | Security purchased on a forward commitment basis. This security is subject to dollar roll transactions. See Note 1G. |
(n) | Variable rate senior loan interests are, at present, not readily marketable, not registered under the Securities Act of 1933, as amended (the “1933 Act”), and may be subject to contractual and legal restrictions on sale. Variable rate senior loan interests in the Fund’s portfolio generally have variable rates which adjust to a base, such as the London Interbank Offered Rate (“LIBOR”), on set dates, typically every 30 days, but not greater than one year, and/or have interest rates that float at margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank. |
(o) | Foreign denominated security. Principal amount is denominated in the currency indicated. |
(p) | Non-income producing security. |
(q) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the7-day SEC standardized yield as of February 28, 2019. |
(r) | The table below details options purchased: See Note 1L and Note 1M. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
33 | Invesco Core Plus Bond Fund |
Open Futures Contracts | ||||||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
U.S. Treasury 5 Year Notes | 761 | June-2019 | $ | 87,182,063 | $ | (192,061 | ) | $ | (192,061 | ) | ||||||||||
U.S. Treasury 10 Year Notes | 1,817 | June-2019 | 221,674,000 | (685,700 | ) | (685,700 | ) | |||||||||||||
U.S. Treasury Long Bonds | 500 | June-2019 | 72,234,375 | (501,190 | ) | (501,190 | ) | |||||||||||||
U.S. Treasury Ultra Bonds | 611 | June-2019 | 97,511,781 | (1,017,434 | ) | (1,017,434 | ) | |||||||||||||
Subtotal–Long Futures Contracts | (2,396,385 | ) | (2,396,385 | ) | ||||||||||||||||
Short Futures Contracts | ||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
U.S. Treasury 2 Year Notes | 14 | June-2019 | (2,970,734 | ) | (467 | ) | (467 | ) | ||||||||||||
U.S. Treasury 10 Year Ultra Bonds | 2,369 | June-2019 | (306,674,453 | ) | 2,084,777 | 2,084,777 | ||||||||||||||
Subtotal–Short Futures Contracts | 2,084,310 | 2,084,310 | ||||||||||||||||||
Total Futures Contracts | $ | (312,075 | ) | $ | (312,075 | ) |
Open Exchange-Traded Equity Options Purchased | ||||||||||||||||||||||||
Description | Type of Contract | Expiration Date | Number of Contracts | Exercise Price | Notional Value | Value | ||||||||||||||||||
Equity Risk | ||||||||||||||||||||||||
AbbVie, Inc. | Call | 01/15/2021 | 60 | $ | 85.00 | $ | 510,000 | $ | 45,750 | |||||||||||||||
Amazon.com, Inc. | Call | 06/19/2020 | 3 | 1,730.00 | 519,000 | 60,255 | ||||||||||||||||||
Apple Inc. | Call | 01/17/2020 | 46 | 230.00 | 1,058,000 | 8,211 | ||||||||||||||||||
Booking Holdings, Inc. | Call | 06/19/2020 | 1 | 2,040.00 | 204,000 | 9,000 | ||||||||||||||||||
Chevron Corp. | Call | 01/15/2021 | 38 | 120.00 | 456,000 | 43,320 | ||||||||||||||||||
Cisco Systems, Inc. | Call | 01/15/2021 | 110 | 50.00 | 550,000 | 80,850 | ||||||||||||||||||
Consumer Discretionary Select Sector SPDR Fund | Call | 01/17/2020 | 90 | 112.00 | 1,008,000 | 61,200 | ||||||||||||||||||
Consumer Staples Select Sector SPDR Fund | Call | 01/17/2020 | 105 | 54.00 | 432,000 | 30,608 | ||||||||||||||||||
Health Care Select Sector SPDR Fund | Call | 01/15/2021 | 125 | 96.00 | 1,200,000 | 79,687 | ||||||||||||||||||
Intel Corp. | Call | 01/15/2021 | 95 | 52.50 | 498,750 | 73,625 | ||||||||||||||||||
Micron Technology, Inc. | Call | 01/15/2021 | 10 | 42.00 | 42,000 | 9,975 | ||||||||||||||||||
Microsoft Corp. | Call | 01/17/2020 | 60 | 115.00 | 690,000 | 51,600 | ||||||||||||||||||
Oracle Corp. Call | Call | 01/17/2020 | 40 | 52.50 | 210,000 | 16,800 | ||||||||||||||||||
Procter & Gamble Co. (The) | Call | 01/15/2021 | 30 | 100.00 | 300,000 | 23,850 | ||||||||||||||||||
Unitedhealth Group, Inc. | Call | 01/17/2020 | 21 | 270.00 | 567,000 | 20,895 | ||||||||||||||||||
Verizon Communications Inc. | Call | 01/17/2020 | 70 | 60.00 | 420,000 | 14,735 | ||||||||||||||||||
Visa, Inc. | Call | 01/17/2020 | 14 | 145.00 | 203,000 | 20,475 | ||||||||||||||||||
Walt Disney Co. (The) | Call | 01/17/2020 | 50 | 120.00 | 600,000 | 27,125 | ||||||||||||||||||
Open Exchange-Traded Equity Options Purchased |
| 968 | $ | 677,961 |
Open Exchange-Traded Index Options Purchased | ||||||||||||||||||||||||
Description | Type of Contract | Expiration Date | Number of Contracts | Exercise Price | Notional Value(a) | Value | ||||||||||||||||||
Equity Risk | ||||||||||||||||||||||||
S&P 500 Index | Call | 06/19/2020 | 2 | $2,675.00 | $ | 535,000 | $ | 54,970 | ||||||||||||||||
S&P 500 Index | Call | 06/19/2020 | 64 | 2,750.00 | 17,600,000 | 1,448,000 | ||||||||||||||||||
S&P 500 Index | Call | 12/18/2020 | 31 | 2,800.00 | 8,680,000 | 746,945 | ||||||||||||||||||
Subtotal | 97 | 2,249,915 |
(a) | Notional Value is calculated by multiplying the Number of Contracts by the Exercise Price by the multiplier. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
34 | Invesco Core Plus Bond Fund |
OpenOver-The-Counter Foreign Currency Options Purchased | ||||||||||||||||||||||||
Description | Type of Contract | Counterparty | Expiration Date | Exercise Price | Notional Value | Value | ||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||
USD versus GBP | Call | Citibank NA | 04/05/2019 | GBP 1.38 | USD 82,650,000 | $ | 167,945 | |||||||||||||||||
Subtotal – Foreign Currency Call Options Purchased |
| 167,945 | ||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||
EUR versus GBP | Put | Citibank NA | 04/05/2019 | GBP 0.85 | EUR 70,000,000 | 698,917 | ||||||||||||||||||
EUR versus USD | Put | | Morgan Stanley & Co International PLC | | 05/16/2019 | USD 1.11 | EUR 136,200,000 | 282,110 | ||||||||||||||||
Subtotal – Foreign Currency Put Options Purchased |
| 981,027 | ||||||||||||||||||||||
Total Foreign Currency Options Purchased |
| $ | 1,148,972 |
Open Exchange-Traded Equity Options Written | ||||||||||||||||||||||||||||||||
Description | Type of Contract | Expiration Date | Number of Contracts | Exercise Price | Premiums Received | Notional Value(a) | Value | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||||
Equity Risk | ||||||||||||||||||||||||||||||||
AbbVie, Inc. | Call | 01/15/2021 | 20 | $ | 105.00 | $ | (7,179 | ) | $ | 210,000 | $ | (5,580 | ) | $ 1,599 | ||||||||||||||||||
Amazon.com, Inc. | Call | 01/17/2020 | 40 | 2,400.00 | (16,108 | ) | 240,000 | (1,675 | ) | 14,433 | ||||||||||||||||||||||
Amazon.com, Inc. | Call | 06/19/2020 | 2 | 2,300.00 | (18,296 | ) | 460,000 | (10,085 | ) | 8,211 | ||||||||||||||||||||||
Apple Inc. | Call | 01/17/2020 | 11 | 280.00 | (11,461 | ) | 308,000 | (286 | ) | 11,175 | ||||||||||||||||||||||
Booking Holdings, Inc. | Call | 01/17/2020 | 1 | 2,200.00 | (4,347 | ) | 220,000 | (2,410 | ) | 1,937 | ||||||||||||||||||||||
Cisco Systems, Inc. | Call | 01/15/2021 | 1 | 60.00 | (8,279 | ) | 240,000 | (13,000 | ) | (4,722 | ) | |||||||||||||||||||||
Consumer Staples Select Sector SPDR Fund | Call | 01/17/2020 | 25 | 65.00 | (1,224 | ) | 162,500 | (238 | ) | 987 | ||||||||||||||||||||||
Consumer Staples Select Sector SPDR Fund | Call | 01/17/2020 | 25 | 0.00 | (3,599 | ) | 0 | (7,287 | ) | (3,689 | ) | |||||||||||||||||||||
Micron Technology, Inc. | Call | 01/15/2021 | 5 | 55.00 | (2,485 | ) | 27,500 | (2,875 | ) | (390 | ) | |||||||||||||||||||||
Microsoft Corp. | Call | 01/17/2020 | 15 | 135.00 | (7,709 | ) | 202,500 | (3,548 | ) | 4,162 | ||||||||||||||||||||||
Unitedhealth Group, Inc. | Call | 01/17/2020 | 2 | 280.00 | (2,369 | ) | 56,000 | (1,415 | ) | 954 | ||||||||||||||||||||||
Unitedhealth Group, Inc. | Call | 01/17/2020 | 3 | 300.00 | (2,772 | ) | 90,000 | (1,050 | ) | 1,722 | ||||||||||||||||||||||
Verizon Communications Inc. | Call | 01/17/2020 | 70 | 60.00 | (9,587 | ) | 420,000 | (14,735 | ) | (5,148 | ) | |||||||||||||||||||||
Visa, Inc. | Call | 01/17/2020 | 4 | 175.00 | (1,860 | ) | 70,000 | (1,132 | ) | 728 | ||||||||||||||||||||||
Walt Disney Co. (The) | Call | 01/17/2020 | 12 | 130.00 | (3,374 | ) | 156,000 | (3,024 | ) | 350 | ||||||||||||||||||||||
Total Exchange-Traded Equity Options Written |
| (100,649 | ) | $ | (68,340 | ) | $32,309 |
(a) | Notional Value is calculated by multiplying the Number of Contracts by the Exercise Price by the multiplier. |
Open Forward Foreign Currency Contracts | ||||||||||||||
Settlement Date | Contract to | Unrealized (Depreciation) | ||||||||||||
Counterparty | Deliver | Receive | ||||||||||||
Currency Risk | ||||||||||||||
05/20/2019 | Morgan Stanley | USD 30,444,800 | EUR 26,800,000 | $ | 235,973 | |||||||||
05/28/2019 | JP Morgan Chase Bank | USD 73,498,246 | NOK 631,765,641 | 591,539 | ||||||||||
05/31/2019 | Citibank, N.A. | EUR 61,018,005 | CHF 60,411,662 | 12,527 | ||||||||||
11/08/2019 | Morgan Stanley | EUR 11,450,000 | USD 13,505,100 | 207,315 | ||||||||||
Subtotal–Appreciation | 1,047,354 | |||||||||||||
Currency Risk | ||||||||||||||
05/28/2019 | Citibank, N.A. | CAD 20,013,591 | USD 15,191,942 | (47,705 | ) | |||||||||
05/28/2019 | Citibank, N.A. | GBP 128,227 | USD 167,441 | (3,357 | ) | |||||||||
05/28/2019 | Goldman Sachs & Co. | EUR 12,746,902 | USD 14,556,173 | (46,291 | ) | |||||||||
05/31/2019 | Goldman Sachs & Co. | CHF 60,411,662 | USD 60,801,827 | (228,705 | ) | |||||||||
11/08/2019 | Citibank, N.A. | USD 12,896,396 | EUR 11,045,000 | (68,970 | ) | |||||||||
Subtotal–Depreciation | (395,028 | ) | ||||||||||||
Total Forward Foreign Currency Contracts | $ | 652,326 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
35 | Invesco Core Plus Bond Fund |
Open Centrally Cleared Interest Rate Swap Agreements | ||||||||||||||||||||||||||||
Pay/ Receive Floating Rate | Floating Rate Index | Payment Frequency | (Pay)/ Receive | Payment Frequency | Maturity Date | Notional Value | Upfront Payments | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||
Receive | 6 Month EUR LIBOR | Semi-Annually | 0.815 | % | Semi-Annually | 01/14/2029 | € | 70,000,000 | $– | $ | 984,990 | $ | 984,990 | |||||||||||||||
Subtotal - Appreciation | – | 984,990 | 984,990 | |||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||
Pay | 6 Month AUD BBSW | Semi-Annually | (2.566 | ) | Semi-Annually | 01/11/2029 | 120,000,000 | – | (1,358,649 | ) | (1,358,649 | ) | ||||||||||||||||
Subtotal - Depreciation | – | (1,358,649 | ) | (1,358,649 | ) | |||||||||||||||||||||||
Total Centrally Cleared Interest Rate Swap Agreements |
| $– | $ | (373,659 | ) | $ | (373,659 | ) |
Abbreviations:
BBSW | -Bank Bill Swap Rate | |
CAD | -Canadian Dollar | |
CHF | -Swiss Franc | |
EUR | -Euro | |
GBP | -British Pound Sterling | |
LIBOR | -London Interbank Offered Rate | |
NOK | -Norway Krone | |
SPDR | -Standard & Poor’s Depositary Receipt | |
USD | -U.S. Dollar |
Portfolio Composition
By security type, based on Total Investments
as of February 28, 2019
U.S. Dollar Denominated Bonds & Notes | 44.0 | % | ||
Asset-Backed Securities | 17.1 | |||
U.S. Treasury Securities | 15.2 | |||
U.S. Government Sponsored Agency Mortgage-Backed Securities | 12.4 | |||
Preferred Stocks | 1.5 | |||
Security types each less than 1% portfolio | 1.3 | |||
Money Market Funds | 8.5 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
36 | Invesco Core Plus Bond Fund |
Statement of Assets and Liabilities
February 28, 2019
(Unaudited)
Assets: | ||||
Investments in securities, at value | $ | 3,642,789,103 | ||
Investments in affiliated money market funds, at value | 338,231,088 | |||
Other investments: | ||||
Variation margin receivable-centrally cleared swap agreements | 386,720 | |||
Unrealized appreciation on forward foreign currency contracts outstanding | 1,047,354 | |||
Cash | 4,776,532 | |||
Foreign currencies, at value | 6,183,272 | |||
Receivable for: | ||||
Investments sold | 88,255,913 | |||
Fund shares sold | 5,983,148 | |||
Fund expenses absorbed | 77,584 | |||
Dividends | 1,286,484 | |||
Interest | 25,836,540 | |||
Investments matured, at value | 81,446 | |||
Principal paydowns | 784 | |||
Investment for trustee deferred compensation and retirement plans | 132,398 | |||
Other assets | 92,910 | |||
Total assets | 4,115,161,276 | |||
Liabilities: | ||||
Other investments: | ||||
Options written, at value (premiums received $100,649) | 68,340 | |||
Variation margin payable - futures contracts | 995,852 | |||
Unrealized depreciation on forward foreign currency contracts outstanding | 395,028 | |||
Payable for: | ||||
Investments purchased | 261,338,121 | |||
Dividends | 1,394,474 | |||
Fund shares reacquired | 5,084,301 | |||
Accrued fees to affiliates | 691,078 | |||
Accrued trustees’ and officers’ fees and benefits | 10,497 | |||
Trustee deferred compensation and retirement plans | 153,015 | |||
Total liabilities | 270,130,706 | |||
Net assets applicable to shares outstanding | $ | 3,845,030,570 |
Net assets consist of: | ||||
Shares of beneficial interest | $ | 4,006,741,981 | ||
Distributable earnings | (161,711,411 | ) | ||
$ | 3,845,030,570 | |||
Net Assets: | ||||
Class A | $ | 923,854,282 | ||
Class C | $ | 73,764,557 | ||
Class R | $ | 15,158,203 | ||
Class Y | $ | 820,295,509 | ||
Class R5 | $ | 5,509,570 | ||
Class R6 | $ | 2,006,448,449 | ||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 88,428,005 | |||
Class C | 7,063,363 | |||
Class R | 1,451,318 | |||
Class Y | 78,445,003 | |||
Class R5 | 527,591 | |||
Class R6 | 192,171,426 | |||
Class A: | ||||
Net asset value per share | $ | 10.45 | ||
Maximum offering price per share | $ | 10.91 | ||
Class C: | ||||
Net asset value and offering price per share | $ | 10.44 | ||
Class R: | ||||
Net asset value and offering price per share | $ | 10.44 | ||
Class Y: | ||||
Net asset value and offering price per share | $ | 10.46 | ||
Class R5: | ||||
Net asset value and offering price per share | $ | 10.44 | ||
Class R6: | ||||
Net asset value and offering price per share | $ | 10.44 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
37 | Invesco Core Plus Bond Fund |
Statement of Operations
For the six months ended February 28, 2019
(Unaudited)
Investment income: | ||||
Interest (net of foreign withholding taxes of $239) | $ | 78,232,974 | ||
Dividends | 2,119,331 | |||
Dividends from affiliated money market funds | 3,113,665 | |||
Total investment income | 83,465,970 | |||
Expenses: | ||||
Advisory fees | 7,780,645 | |||
Administrative services fees | 287,631 | |||
Custodian fees | 46,619 | |||
Distribution fees: | ||||
Class A | 1,091,096 | |||
Class C | 535,413 | |||
Class R | 36,514 | |||
Transfer agent fees – A, C, R and Y | 1,378,813 | |||
Transfer agent fees – R5 | 2,734 | |||
Transfer agent fees – R6 | 53,392 | |||
Trustees’ and officers’ fees and benefits | 39,425 | |||
Registration and filing fees | 121,747 | |||
Reports to shareholders | 199,674 | |||
Professional services fees | 41,514 | |||
Other | 87,298 | |||
Total expenses | 11,702,515 | |||
Less: Fees waived and expense offset arrangement(s) | (1,009,755 | ) | ||
Net expenses | 10,692,760 | |||
Net investment income | 72,773,210 | |||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities | (42,769,627 | ) | ||
Foreign currencies | 1,010 | |||
Forward foreign currency contracts | (8,988,715 | ) | ||
Futures contracts | (6,166,065 | ) | ||
Option contracts written | 3,920,595 | |||
Swap agreements | 1,482,254 | |||
(52,520,548 | ) | |||
Change in net unrealized appreciation (depreciation) of: | 17,644,265 | |||
Foreign currencies | 45,188 | |||
Forward foreign currency contracts | (443,000 | ) | ||
Futures contracts | 869,592 | |||
Option contracts written | (1,814,853 | ) | ||
Swap agreements | 3,775,698 | |||
20,076,890 | ||||
Net realized and unrealized gain (loss) | (32,443,658 | ) | ||
Net increase in net assets resulting from operations | $ | 40,329,552 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
38 | Invesco Core Plus Bond Fund |
Statement of Changes in Net Assets
For the six months ended February 28, 2019 and the year ended August 31, 2018
(Unaudited)
February 28, 2019 | August 31, 2018 | |||||||
Operations: | ||||||||
Net investment income | $ | 72,773,210 | $ | 122,914,123 | ||||
Net realized gain (loss) | (52,520,548 | ) | (57,853,055 | ) | ||||
Change in net unrealized appreciation (depreciation) | 20,076,890 | (116,160,777 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 40,329,552 | (51,099,709 | ) | |||||
Distributions to shareholders from distributable earnings(1): | ||||||||
Class A | (16,367,068 | ) | (25,777,403 | ) | ||||
Class B | - | (19,146 | ) | |||||
Class C | (1,588,823 | ) | (2,981,838 | ) | ||||
Class R | (255,005 | ) | (366,792 | ) | ||||
Class Y | (17,403,289 | ) | (44,624,566 | ) | ||||
Class R5 | (109,303 | ) | (192,160 | ) | ||||
Class R6 | (40,829,778 | ) | (49,953,506 | ) | ||||
Total distributions to shareholders from distributable earnings | (76,553,266 | ) | (123,915,411 | ) | ||||
Return of capital: | ||||||||
Class A | - | (1,152,623 | ) | |||||
Class B | - | (3,497 | ) | |||||
Class C | - | (179,531 | ) | |||||
Class R | - | (17,840 | ) | |||||
Class Y | - | (1,872,061 | ) | |||||
Class R5 | - | (8,012 | ) | |||||
Class R6 | - | (1,989,623 | ) | |||||
Total return of capital | - | (5,223,187 | ) | |||||
Share transactions–net: | ||||||||
Class A | 42,840,547 | 122,084,041 | ||||||
Class B | - | (3,035,643 | ) | |||||
Class C | (48,220,501 | ) | (905,235 | ) | ||||
Class R | 1,126,936 | 4,355,347 | ||||||
Class Y | (102,850,992 | ) | (272,131,008 | ) | ||||
Class R5 | (107,599 | ) | 1,116,718 | |||||
Class R6 | (96,102,545 | ) | 1,062,065,636 | |||||
Net increase (decrease) in net assets resulting from share transactions | (203,314,154 | ) | 913,549,856 | |||||
Net increase (decrease) in net assets | (239,537,868 | ) | 733,311,549 | |||||
Net assets: | ||||||||
Beginning of period | 4,084,568,438 | 3,351,256,889 | ||||||
End of period | $ | 3,845,030,570 | $ | 4,084,568,438 |
(1) | The Securities and Exchange Commission eliminated the requirement to disclose distribution components separately, except for tax return of capital. For the year ended August 31, 2018, distributions to shareholders from distributable earnings consisted of distributions from net investment income. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
39 | Invesco Core Plus Bond Fund |
Notes to Financial Statements
February 28, 2019
(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 authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
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 C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. 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, Class R5 and Class R6 shares are sold at net asset value.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946,Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations– Securities, including restricted securities, are valued according to the following policy. |
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Swap agreements are fair valued using an evaluated quote, if available, 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, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
40 | Invesco Core Plus Bond Fund |
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
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 (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. 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. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
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 net investment income, if any, are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes– The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
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 Class R5 and Class R6 are allocated to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
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 the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
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 the 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 |
41 | Invesco Core Plus Bond Fund |
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. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. | Forward Foreign Currency Contracts– The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
K. | 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 (“Counterparties”) 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. |
L. | Call Options Purchased and Written- The Fund may write covered call options and/or buy call options. A covered call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security or foreign currency at the stated exercise price during the option period. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written. |
When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written covered call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written covered call option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized and unrealized gains and losses on call options written are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Option contracts written. A risk in writing a covered call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.
When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities. The amount of the investment is subsequently “marked-to-market” to reflect the current value of the option purchased. Realized and unrealized gains and losses on call options purchased are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
M. | Put Options Purchased and Written- The Fund may purchase and write put options including options on securities indexes, or foreign currency and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract. |
42 | Invesco Core Plus Bond Fund |
Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.
Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the underlying portfolio securities. The Fund may write put options to earn additional income in the form of option premiums if it expects the price of the underlying instrument to remain stable or rise during the option period so that the option will not be exercised. The risk in this strategy is that the price of the underlying securities may decline by an amount greater than the premium received. Put options written are reported as a liability in the Statement of Assets and Liabilities. Realized and unrealized gains and losses on put options purchased and put options written are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities and Option contracts written, respectively. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
N. | Swap Agreements– The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/ OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/ or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. |
Interest rate, total return, index, and currency 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.
In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.
A CDS is an agreement between 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. 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 designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.
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.
An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.
Changes in the value of centrally cleared and OTC 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
43 | Invesco Core Plus Bond Fund |
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 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 cash or liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. Cash held as collateral is recorded as deposits with brokers on the Statement of Assets and Liabilities. 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. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
Notional amounts of each individual credit default swap agreement outstanding as of February 28, 2019 for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.
O. | 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 theto 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 involve the risk that a Counterparty 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 roll 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. Dollar roll transactions covered in this manner are not treated as senior securities for purposes of a Fund’s fundamental investment limitation on senior securities and borrowings.
P. | Other Risks– The Fund 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 Fund may not be able to recover its investment in such issuer from the U.S. Government. Many securities purchased by the Fund are not guaranteed by the U.S. Government. |
Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.
Q. | Leverage Risk– Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction. |
R. | Collateral–To the extent the Fund has designated 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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |
First $ 500 million | 0.450% | |
Next $500 million | 0.425% | |
Next $1.5 billion | 0.400% | |
Next $2.5 billion | 0.375% | |
Over $5 billion | 0.350% |
For the six months ended February 28, 2019, the effective advisory fees incurred by the Fund was 0.40%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least December 31, 2019, 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 C, Class R, Class Y, Class R5 and Class R6 shares to 0.75%, 1.50%, 1.00%, 0.50%, 0.50% and 0.50%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on December 31, 2019. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees.
44 | Invesco Core Plus Bond Fund |
Further, the Adviser has contractually agreed, through at least June 30, 2020, 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 28, 2019, the Adviser waived advisory fees of $163,639 and reimbursed class level expenses of $393,546, $48,280, $6,585, $393,113, $1,171 and $0 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 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 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and 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 services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2019, expenses incurred under the agreement are shown in the Statement of Operationsas 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, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class 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 C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 28, 2019, expenses incurred under the Plans are shown in the Statement of Operations asDistribution 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 28, 2019, IDI advised the Fund that IDI retained $71,778 in front-end sales commissions from the sale of Class A shares and $13,129 and $7,571 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.
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 28, 2019. 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.
45 | Invesco Core Plus Bond Fund |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
U.S. Dollar Denominated Bonds & Notes | $ | - | $ | 1,750,670,444 | $0 | $ | 1,750,670,444 | |||||||||
Asset-Backed Securities | - | 680,953,288 | - | 680,953,288 | ||||||||||||
U.S. Treasury Securities | - | 605,881,671 | - | 605,881,671 | ||||||||||||
U.S. Government Sponsored Agency Mortgage-Backed Securities | - | 495,389,352 | - | 495,389,352 | ||||||||||||
Preferred Stocks | 57,801,669 | - | - | 57,801,669 | ||||||||||||
Agency Credit Risk Transfer Notes | - | 26,245,129 | - | 26,245,129 | ||||||||||||
Variable Rate Senior Loan Interests | - | 10,861,379 | - | 10,861,379 | ||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes | - | 10,268,834 | - | 10,268,834 | ||||||||||||
Municipal Obligations | - | 622,352 | - | 622,352 | ||||||||||||
Common Stocks & Other Equity Interests | 3,582 | 14,555 | 0 | 18,137 | ||||||||||||
Money Market Funds | 338,231,088 | - | - | 338,231,088 | ||||||||||||
Options Purchased | 2,927,876 | 1,148,972 | - | 4,076,848 | ||||||||||||
Investments Matured | - | 81,446 | - | 81,446 | ||||||||||||
Total Investments in Securities | 398,964,215 | 3,582,137,422 | 0 | 3,981,101,637 | ||||||||||||
Other Investments - Assets* | ||||||||||||||||
Futures Contracts | 2,084,777 | - | - | 2,084,777 | ||||||||||||
Forward Foreign Currency Contracts | - | 1,047,354 | - | 1,047,354 | ||||||||||||
Swap Agreements | - | 984,990 | - | 984,990 | ||||||||||||
2,084,777 | 2,032,344 | - | 4,117,121 | |||||||||||||
Other Investments - Liabilities* | ||||||||||||||||
Futures Contracts | (2,396,852 | ) | - | - | (2,396,852 | ) | ||||||||||
Forward Foreign Currency Contracts | - | (395,028 | ) | - | (395,028 | ) | ||||||||||
Options Written | (68,340 | ) | - | - | (68,340 | ) | ||||||||||
Swap Agreements | - | (1,358,649 | ) | - | (1,358,649 | ) | ||||||||||
(2,465,192 | ) | (1,753,677 | ) | - | (4,218,869 | ) | ||||||||||
Total Other Investments | (380,415 | ) | 278,667 | - | (101,748 | ) | ||||||||||
Total Investments | $ | 398,583,800 | $ | 3,582,416,089 | $0 | $ | 3,980,999,889 |
* | Forward foreign currency contracts, futures contracts and swap agreements are valued at unrealized appreciation (depreciation). Options written are shown at value. |
NOTE 4–Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
46 | Invesco Core Plus Bond Fund |
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of February 28, 2019:
Value | ||||||||||||||
Derivative Assets | Currency Risk | Equity Risk | Interest Rate Risk | Total | ||||||||||
Unrealized appreciation on futures contracts – Exchange-Traded(a) | $ | - | $- | $ | 2,084,777 | $ | 2,084,777 | |||||||
Unrealized appreciation on swap agreements – Centrally Cleared(a) | - | - | 984,990 | 984,990 | ||||||||||
Unrealized appreciation on forward foreign currency contracts outstanding | 1,047,354 | - | - | 1,047,354 | ||||||||||
Options purchased, at value – Exchange-Traded(b) | - | - | 2,927,876 | 2,927,876 | ||||||||||
Options purchased, at value – OTC(b) | 1,148,972 | - | - | 1,148,972 | ||||||||||
Total Derivative Assets | 2,196,326 | - | 5,997,643 | 8,193,969 | ||||||||||
Derivatives not subject to master netting agreements | - | - | (5,997,643 | ) | (5,997,643 | ) | ||||||||
Total Derivative Assets subject to master netting agreements | $ | 2,196,326 | $- | $ | - | $ | 2,196,326 |
(a) | The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities. |
(b) | Options purchased, at value as reported in the Schedule of Investments. |
Value | ||||||||||||||||
Derivative Liabilities | Currency Risk | Equity Risk | Interest Rate Risk | Total | ||||||||||||
Unrealized depreciation on futures contracts – Exchange-Traded(a) | $ | - | $ | - | $ | (2,396,852 | ) | $ | (2,396,852 | ) | ||||||
Unrealized depreciation on swap agreements – Centrally Cleared(a) | - | - | (1,358,649 | ) | (1,358,649 | ) | ||||||||||
Unrealized depreciation on forward foreign currency contracts outstanding | (395,028 | ) | - | - | (395,028 | ) | ||||||||||
Options written, at value – Exchange-Traded | - | (68,340 | ) | - | (68,340 | ) | ||||||||||
Total Derivative Liabilities | (395,028 | ) | (68,340 | ) | (3,755,501 | ) | (4,218,869 | ) | ||||||||
Derivatives not subject to master netting agreements | - | 68,340 | 3,755,501 | 3,823,841 | ||||||||||||
Total Derivative Liabilities subject to master netting agreements | $ | (395,028 | ) | $ | - | $ | - | $ | (395,028 | ) |
(a) | The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities. |
(b) | Options purchased, at value as reported in the Schedule of Investments. |
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of February 28, 2019.
Financial Derivative Assets | Financial Derivative Liabilities | Collateral | ||||||||||||||||||||||||||||
Forward Foreign | Options | Total | Forward Foreign | Net Value of | (Received)/Pledged | Net | ||||||||||||||||||||||||
Counterparty | Currency Contracts | Purchased | Assets | Currency Contracts | Derivatives | Non-Cash | Cash | Amount | ||||||||||||||||||||||
Citibank, N.A. | $ 12,527 | $ 866,862 | $ | 879,389 | $(120,032 | ) | $ | 759,357 | $- | $ (759,357 | ) | $ | - | |||||||||||||||||
Goldman Sachs & Co. | - | - | - | (274,996 | ) | (274,996 | ) | - | - | (274,996 | ) | |||||||||||||||||||
JP Morgan Chase Bank | 591,539 | - | 591,539 | - | 591,539 | - | - | 591,539 | ||||||||||||||||||||||
Morgan Stanley | 443,288 | 282,110 | 725,398 | - | 725,398 | - | (500,000 | ) | 225,398 | |||||||||||||||||||||
Total | $10,47,354 | $ | 1,148,972 | $ | 2,196,326 | $(395,028 | ) | $ | 1,801,298 | $- | $(1,259,357 | ) | $ | 541,941 |
47 | Invesco Core Plus Bond Fund |
Effect of Derivative Investments for the six months ended February 28, 2019
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain (Loss) on Statement of Operations | ||||||||||||||||||||
Credit Risk | Currency Risk | Equity Risk | Interest Rate Risk | Total | ||||||||||||||||
Realized Gain (Loss): | ||||||||||||||||||||
Forward foreign currency contracts | $ | - | $ | (8,988,715 | ) | $ | - | $ | - | $ | (8,988,715 | ) | ||||||||
Futures contracts | - | - | - | (6,166,065 | ) | (6,166,065 | ) | |||||||||||||
Options purchased(a) | (1,208,657 | ) | (2,713,808 | ) | (130,662 | ) | (1,903,750 | ) | (5,956,877 | ) | ||||||||||
Options written | - | 1,716,644 | 12,573 | 2,191,378 | 3,920,595 | |||||||||||||||
Swap agreements | (993,441 | ) | - | - | 2,475,695 | 1,482,254 | ||||||||||||||
Change in Net Unrealized Appreciation (Depreciation): | ||||||||||||||||||||
Forward foreign currency contracts | - | (443,000 | ) | - | - | (443,000 | ) | |||||||||||||
Futures contracts | - | - | - | 869,592 | 869,592 | |||||||||||||||
Options purchased(a) | - | 107,505 | (534,321 | ) | - | (426,816 | ) | |||||||||||||
Options written | - | (1,682,780 | ) | 24,076 | (156,149 | ) | (1,814,853 | ) | ||||||||||||
Swap agreements | - | - | - | 3,775,698 | 3,775,698 | |||||||||||||||
Total | $ | (2,202,098 | ) | $ | (12,004,154 | ) | $ | (628,334 | ) | $ | 1,086,399 | $ | (13,748,187 | ) |
(a) | Options purchased are included in the net realized gain (loss) from investment securities and the change in net unrealized appreciation (depreciation) of investment securities. |
The table below summarizes the average notional value of derivatives held during the period.
Forward Foreign Currency Contracts | Futures Contracts | Equity Options Purchased | Index Options Purchased | Swaptions Purchased | Foreign Currency Options Purchased | Equity Options Written | Swaptions Written | Foreign Currency Options Written | Swap Agreements | |||||||||||||||||||||||||||||||
Average notional value | $970,872,109 | $ | 924,155,622 | $ | 18,890,592 | $ | 23,807,500 | $ | 250,000,000 | $ | 206,736,475 | $ | 2,920,958 | $ | 154,570,000 | $ | 80,000,000 | $ | 578,164,084 | |||||||||||||||||||||
Average Contracts | - | - | 10,032 | 507 | - | - | 1,491 | - | - | - |
NOTE 5–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $3,421.
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, andTrustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan.Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund 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. 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. 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. The Fund may not purchase additional securities when any borrowings from banks exceed 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 GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss
48 | Invesco Core Plus Bond Fund |
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. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2018, as follows:
Capital Loss Carryforward* | ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
Not subject to expiration | $ | 60,416,517 | $ | 4,887,734 | $ | 65,304,251 |
* | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2019 was $5,316,796,284 and $6,163,059,692, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $2,597,331,473 and $2,391,939,976, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a TaxBasis | ||||
Aggregate unrealized appreciation of investments | $ | 24,062,630 | ||
Aggregate unrealized (depreciation) of investments | (64,050,445 | ) | ||
Net unrealized (depreciation) of investments | $ | (39,987,815 | ) |
Cost of investments for tax purposes is $4,020,987,704.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
Six months ended February 28, 2019(a) | Year ended August 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Sold: | ||||||||||||||||
Class A | 12,313,428 | 127,590,321 | 26,826,117 | 288,639,138 | ||||||||||||
Class B(b) | - | - | 6,748 | 74,038 | ||||||||||||
Class C | 1,306,293 | 13,488,207 | 4,510,488 | 48,760,686 | ||||||||||||
Class R | 346,633 | 3,593,451 | 918,412 | 9,911,883 | ||||||||||||
Class Y | 23,096,021 | 239,890,592 | 112,450,633 | 1,215,135,403 | ||||||||||||
Class R5 | 41,551 | 429,436 | 660,164 | 7,082,251 | ||||||||||||
Class R6 | 12,656,299 | 131,181,186 | 119,453,038 | 1,266,680,236 | ||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 1,437,574 | 14,891,071 | 2,315,982 | 24,739,891 | ||||||||||||
Class B(b) | - | - | 1,369 | 14,958 | ||||||||||||
Class C | 126,589 | 1,308,875 | 255,705 | 2,730,753 | ||||||||||||
Class R | 24,043 | 248,998 | 35,798 | 382,039 | ||||||||||||
Class Y | 1,166,914 | 12,096,912 | 3,167,089 | 34,018,398 | ||||||||||||
Class R5 | 10,531 | 109,026 | 18,658 | 199,687 | ||||||||||||
Class R6 | 3,852,669 | 39,881,035 | 4,832,635 | 51,408,112 | ||||||||||||
Conversion of Class B shares to Class A shares:(c) | ||||||||||||||||
Class A | - | - | 180,127 | 1,954,379 | ||||||||||||
Class B | - | - | (179,986 | ) | (1,954,379 | ) |
49 | Invesco Core Plus Bond Fund |
Summary of Share Activity | ||||||||||||||||||
Six months ended February 28, 2019(a) | Year ended August 31, 2018 | |||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||
Reacquired: | ||||||||||||||||||
Class A | (9,629,888 | ) | (99,640,845 | ) | (18,049,396 | ) | (193,249,367) | |||||||||||
Class B(b) | - | - | (107,475 | ) | (1,170,260) | |||||||||||||
Class C | (6,082,480 | ) | (63,017,583 | ) | (4,901,731 | ) | (52,396,674) | |||||||||||
Class R | (262,017 | ) | (2,715,513 | ) | (555,488 | ) | (5,938,575) | |||||||||||
Class Y | (34,322,679 | ) | (354,838,496 | ) | (142,999,308 | ) | (1,521,284,809) | |||||||||||
Class R5 | (62,249 | ) | (646,061 | ) | (577,065 | ) | (6,165,220) | |||||||||||
Class R6 | (25,864,278 | ) | (267,164,766 | ) | (24,229,180 | ) | (256,022,712) | |||||||||||
Net increase (decrease) in share activity | (19,845,046 | ) | $ (203,314,154 | ) | 84,033,334 | $ 913,549,856 |
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 66% 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) | Class B shares activity for the period March 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
NOTE 11–Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends investment | Return of capital | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers absorbed | Ratio of expenses to average net fee waivers and/or expenses absorbed | Ratio of net investment income to average net assets | Portfolio turnover (c) | ||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $10.53 | $0.18 | $(0.07 | ) | $0.11 | $(0.19 | ) | $ - | $ - | $(0.19 | ) | $10.45 | 1.10 | % | $923,854 | 0.74 | %(d) | 0.84 | %(d) | 3.56 | %(d) | 195 | % | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 11.03 | 0.31 | (0.48 | ) | (0.17 | ) | (0.32 | ) | (0.01 | ) | - | (0.33 | ) | 10.53 | (1.51 | ) | 887,784 | 0.74 | 0.82 | 2.96 | 383 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 11.05 | 0.28 | 0.03 | 0.31 | (0.31 | ) | - | (0.02 | ) | (0.33 | ) | 11.03 | 2.88 | 805,356 | 0.76 | 0.88 | 2.54 | 547 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 10.63 | 0.25 | 0.51 | 0.76 | (0.34 | ) | - | - | (0.34 | ) | 11.05 | 7.33 | 684,628 | 0.83 | 0.92 | 2.40 | 518 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 10.92 | 0.30 | (0.20 | ) | 0.10 | (0.39 | ) | - | - | (0.39 | ) | 10.63 | 0.91 | 495,226 | 0.84 | 0.97 | 2.78 | 537 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 10.41 | 0.39 | 0.58 | 0.97 | (0.46 | ) | - | - | (0.46 | ) | 10.92 | 9.44 | 333,641 | 0.81 | 1.03 | 3.62 | 398 | |||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 10.53 | 0.14 | (0.08 | ) | 0.06 | (0.15 | ) | - | - | (0.15 | ) | 10.44 | 0.62 | 73,765 | 1.49 | (d) | 1.59 | (d) | 2.81 | (d) | 195 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 11.02 | 0.24 | (0.48 | ) | (0.24 | ) | (0.24 | ) | (0.01 | ) | - | (0.25 | ) | 10.53 | (2.16 | ) | 123,285 | 1.49 | 1.57 | 2.21 | 383 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 11.05 | 0.20 | 0.02 | 0.22 | (0.23 | ) | - | (0.02 | ) | (0.25 | ) | 11.02 | 2.02 | 130,591 | 1.51 | 1.63 | 1.79 | 547 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 10.63 | 0.17 | 0.51 | 0.68 | (0.26 | ) | - | - | (0.26 | ) | 11.05 | 6.53 | 108,579 | 1.58 | 1.67 | 1.65 | 518 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 10.91 | 0.22 | (0.19 | ) | 0.03 | (0.31 | ) | - | - | (0.31 | ) | 10.63 | 0.25 | 65,160 | 1.59 | 1.72 | 2.03 | 537 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 10.41 | 0.31 | 0.57 | 0.88 | (0.38 | ) | - | - | (0.38 | ) | 10.91 | 8.53 | 38,142 | 1.56 | 1.78 | 2.87 | 398 | |||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 10.53 | 0.17 | (0.08 | ) | 0.09 | (0.18 | ) | - | - | (0.18 | ) | 10.44 | 0.97 | 15,158 | 0.99 | (d) | 1.09 | (d) | 3.31 | (d) | 195 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 11.02 | 0.29 | (0.47 | ) | (0.18 | ) | (0.30 | ) | (0.01 | ) | - | (0.31 | ) | 10.53 | (1.67 | ) | 14,134 | 0.99 | 1.07 | 2.71 | 383 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 11.05 | 0.25 | 0.02 | 0.27 | (0.28 | ) | - | (0.02 | ) | (0.30 | ) | 11.02 | 2.53 | 10,403 | 1.01 | 1.13 | 2.29 | 547 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 10.63 | 0.23 | 0.51 | 0.74 | (0.32 | ) | - | - | (0.32 | ) | 11.05 | 7.06 | 7,545 | 1.08 | 1.17 | 2.15 | 518 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 10.91 | 0.27 | (0.19 | ) | 0.08 | (0.36 | ) | - | - | (0.36 | ) | 10.63 | 0.75 | 5,848 | 1.09 | 1.22 | 2.53 | 537 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 10.41 | 0.36 | 0.57 | 0.93 | (0.43 | ) | - | - | (0.43 | ) | 10.91 | 9.07 | 3,554 | 1.06 | 1.28 | 3.37 | 398 | |||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 10.54 | 0.20 | (0.07 | ) | 0.13 | (0.21 | ) | - | - | (0.21 | ) | 10.46 | 1.22 | 820,296 | 0.49 | (d) | 0.59 | (d) | 3.81 | (d) | 195 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 11.03 | 0.35 | (0.48 | ) | (0.13 | ) | (0.35 | ) | (0.01 | ) | - | (0.36 | ) | 10.54 | (1.17 | ) | 932,839 | 0.49 | 0.57 | 3.21 | 383 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 11.06 | 0.30 | 0.03 | 0.33 | (0.34 | ) | - | (0.02 | ) | (0.36 | ) | 11.03 | 3.04 | 1,278,700 | 0.51 | 0.63 | 2.79 | 547 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 10.64 | 0.28 | 0.51 | 0.79 | (0.37 | ) | - | - | (0.37 | ) | 11.06 | 7.59 | 282,260 | 0.58 | 0.67 | 2.65 | 518 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 10.92 | 0.33 | (0.19 | ) | 0.14 | (0.42 | ) | - | - | (0.42 | ) | 10.64 | 1.25 | 102,380 | 0.59 | 0.72 | 3.03 | 537 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 10.42 | 0.42 | 0.56 | 0.98 | (0.48 | ) | - | - | (0.48 | ) | 10.92 | 9.61 | 9,699 | 0.56 | 0.78 | 3.87 | 398 | |||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 10.53 | 0.20 | (0.08 | ) | 0.12 | (0.21 | ) | - | - | (0.21 | ) | 10.44 | 1.13 | 5,510 | 0.49 | (d) | 0.54 | (d) | 3.81 | (d) | 195 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 11.03 | 0.34 | (0.48 | ) | (0.14 | ) | (0.35 | ) | (0.01 | ) | - | (0.36 | ) | 10.53 | (1.27 | ) | 5,660 | 0.49 | 0.50 | 3.21 | 383 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 11.05 | 0.30 | 0.04 | 0.34 | (0.34 | ) | - | (0.02 | ) | (0.36 | ) | 11.03 | 3.17 | 4,807 | 0.50 | 0.51 | 2.80 | 547 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 10.63 | 0.28 | 0.51 | 0.79 | (0.37 | ) | - | - | (0.37 | ) | 11.05 | 7.60 | 90 | 0.58 | 0.60 | 2.65 | 518 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 10.91 | 0.33 | (0.19 | ) | 0.14 | (0.42 | ) | - | - | (0.42 | ) | 10.63 | 1.25 | 668 | 0.59 | 0.60 | 3.03 | 537 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 10.40 | 0.41 | 0.58 | 0.99 | (0.48 | ) | - | - | (0.48 | ) | 10.91 | 9.72 | 1,495 | 0.56 | 0.60 | 3.87 | 398 |
50 | Invesco Core Plus Bond Fund |
Net asset value, beginning of period | Net investment income(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends investment | Return of capital | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers absorbed | Ratio of expenses to average net fee waivers and/or expenses absorbed | Ratio of net investment income to average net assets | Portfolio turnover (c) | ||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $10.52 | $0.20 | $(0.07 | ) | $0.13 | $ (0.21 | ) | $ - | $ - | $(0.21 | ) | $10.44 | 1.25 | % | $2,006,448 | 0.44 | %(d) | 0.45 | %(d) | 3.86 | %(d) | 195 | % | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 11.02 | 0.35 | (0.48 | ) | (0.13 | ) | (0.36 | ) | (0.01 | ) | - | (0.37 | ) | 10.52 | (1.21 | ) | 2,120,867 | 0.43 | 0.44 | 3.27 | 383 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 11.05 | 0.30 | 0.03 | 0.33 | (0.34 | ) | - | (0.02 | ) | (0.36 | ) | 11.02 | 3.12 | 1,118,319 | 0.47 | 0.48 | 2.83 | 547 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 10.63 | 0.30 | 0.50 | 0.80 | (0.38 | ) | - | - | (0.38 | ) | 11.05 | 7.71 | 1,147,393 | 0.48 | 0.50 | 2.75 | 518 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 10.91 | 0.34 | (0.19 | ) | 0.15 | (0.43 | ) | - | - | (0.43 | ) | 10.63 | 1.32 | 275,013 | 0.52 | 0.53 | 3.10 | 537 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 10.41 | 0.42 | 0.56 | 0.98 | (0.48 | ) | - | - | (0.48 | ) | 10.91 | 9.64 | 267,254 | 0.54 | 0.56 | 3.89 | 398 |
(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. Not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $880,110, $107,970, $14,727, $879,142, $5,512 and $2,029,940 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
51 | 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, 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, 2018 through February 28, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||||||||||||||||||||
Beginning Account Value (09/01/18) | Ending Account Value (02/28/19)1 | Expenses Paid During Period2 | Ending Account Value (02/28/19) | Expenses Paid During Period2 | Annualized Ratio | |||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,011.00 | $ | 3.69 | $ | 1,021.12 | $ | 3.71 | 0.74 | % | ||||||||||||||||||
Class C | 1,000.00 | 1,006.20 | 7.41 | 1,017.41 | 7.45 | 1.49 | ||||||||||||||||||||||||
Class R | 1,000.00 | 1,009.70 | 4.93 | 1,019.89 | 4.96 | 0.99 | ||||||||||||||||||||||||
Class Y | 1,000.00 | 1,012.20 | 2.44 | 1,022.36 | 2.46 | 0.49 | ||||||||||||||||||||||||
Class R5 | 1,000.00 | 1,011.30 | 2.44 | 1,022.36 | 2.46 | 0.49 | ||||||||||||||||||||||||
Class R6 | 1,000.00 | 1,012.50 | 2.20 | 1,022.61 | 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, 2018 through February 28, 2019, 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 181/365 to reflect the most recent fiscal half year. |
52 | Invesco Core Plus Bond Fund |
Explore High-Conviction Investing with Invesco
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Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
∎ | Fund reports and prospectuses |
∎ | Quarterly statements |
∎ | Daily confirmations |
∎ | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q (or any successor Form) on the SEC website at sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd. | ![]() |
SEC file numbers: 811-09913 and 333-36074 | Invesco Distributors, Inc. | CPB-SAR-1 | 04222019 | 1242 |
| ||||
![]() | Semiannual Report to Shareholders
| February 28, 2019
| ||
Invesco Equally-Weighted S&P 500 Fund
| ||||
Nasdaq: | ||||
A: VADAX ⬛ C: VADCX ⬛ R: VADRX ⬛ Y: VADDX ⬛ R6: VADFX |
| ||||||
2 |
Fund Performance | |||||
4 |
Letters to Shareholders | |||||
5 |
Schedule of Investments | |||||
14 |
Financial Statements | |||||
17 |
Notes to Financial Statements | |||||
23 |
Financial Highlights | |||||
24 |
Fund Expenses |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800 959 4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most currentmonth-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 |
Performance summary
| ||||
Fund vs. Indexes | ||||
Cumulative total returns, 8/31/18 to 2/28/19, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) orfront-end sales charges, which would have reduced performance. |
| |||
Class A Shares | -2.07 | % | ||
Class C Shares | -2.43 | |||
Class R Shares | -2.20 | |||
Class Y Shares | -1.94 | |||
Class R6 Shares | -1.91 | |||
S&P 500 Indexq(Broad Market Index) | -3.04 | |||
S&P 500 Equal Weight Indexq(Style-Specific Index) | -1.81 | |||
Lipper Multi-Cap Core Funds Index∎ (Peer Group Index) | -3.88 | |||
Source(s):qFactSet Research Systems Inc.;∎Lipper Inc. | ||||
TheS&P 500®Indexis an unmanaged index considered representative of the US stock market. TheS&P 500®Equal Weight Indexis the equally weighted version of the S&P 500 Index. TheLipperMulti-Cap Core Funds Indexis an unmanaged index considered representative ofmulti-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.
|
|
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us.Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends. |
2 | Invesco Equally-Weighted S&P 500 Fund |
Average Annual Total Returns |
| |||
As of 2/28/19, including maximum applicable sales charges | ||||
Class A Shares | ||||
Inception (7/28/97) | 8.40 | % | ||
10 Years | 17.42 | |||
5 Years | 7.63 | |||
1 Year | -1.04 | |||
Class C Shares* | ||||
Inception (7/28/97) | 8.31 | % | ||
10 Years | 17.22 | |||
5 Years | 8.08 | |||
1 Year | 2.98 | |||
Class R Shares | ||||
Inception (3/31/08) | 9.69 | % | ||
10 Years | 17.79 | |||
5 Years | 8.59 | |||
1 Year | 4.46 | |||
Class Y Shares | ||||
Inception (7/28/97) | 8.94 | % | ||
10 Years | 18.38 | |||
5 Years | 9.13 | |||
1 Year | 5.01 | |||
Class R6 Shares | ||||
10 Years | 18.35 | % | ||
5 Years | 9.26 | |||
1 Year
| 5.10 | |||
*Effective January 26, 2019, Class C share performance includes the conversion to A shares after 10 years. |
|
Effective June 1, 2010, Class A, Class C, Class R, Class W and Class I shares of the predecessor fund, Morgan Stanley Equally-Weighted S&P 500 Fund, advised by Morgan Stanley Investment Advisors Inc. were reorganized into Class A, Class C, Class R, Class A and Class Y shares, respectively, of Invesco Equally-Weighted S&P 500 Fund. Returns shown above, prior to June 1, 2010, for Class A, 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.
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of the Fund’s and the predecessor fund’s Class A shares and includes the12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit
Average Annual Total Returns |
| |||
As of 12/31/18, the most recent calendar quarter end, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (7/28/97) | 7.81 | % | ||
10 Years | 13.57 | |||
5 Years | 5.34 | |||
1 Year | -13.16 | |||
Class C Shares | ||||
Inception (7/28/97) | 7.30 | % | ||
10 Years | 13.38 | |||
5 Years | 5.77 | |||
1 Year | -9.62 | |||
Class R Shares | ||||
Inception (3/31/08) | 8.53 | % | ||
10 Years | 13.93 | |||
5 Years | 6.27 | |||
1 Year | -8.33 | |||
Class Y Shares | ||||
Inception (7/28/97) | 8.36 | % | ||
10 Years | 14.50 | |||
5 Years | 6.80 | |||
1 Year | -7.87 | |||
Class R6 Shares | ||||
10 Years | 14.46 | % | ||
5 Years | 6.93 | |||
1 Year | -7.78 |
invesco.com/performance for the most recentmonth-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 Class R6 shares was 0.53%, 1.21%, 0.78%, 0.28% and 0.16%, 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 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 Class R6 shares do not have afront-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 Invesco Equally-Weighted S&P 500 Fund
Bruce Crockett | Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory andsub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper, Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward. Our website,invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings |
and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
4 Invesco Equally-Weighted S&P 500 Fund
February 28, 2019
(Unaudited)
Shares | Value | |||||||
| ||||||||
Common Stocks & Other Equity Interests-98.69% |
| |||||||
Advertising-0.37% |
| |||||||
Interpublic Group of Cos., Inc. (The) | 615,230 | $ | 14,168,747 | |||||
| ||||||||
Omnicom Group, Inc. | 180,314 | 13,649,770 | ||||||
| ||||||||
27,818,517 | ||||||||
| ||||||||
Aerospace & Defense-2.41% |
| |||||||
Arconic, Inc. | 692,212 | 12,799,000 | ||||||
| ||||||||
Boeing Co. (The) | 42,867 | 18,859,765 | ||||||
| ||||||||
General Dynamics Corp. | 80,867 | 13,765,181 | ||||||
| ||||||||
Harris Corp. | 92,033 | 15,179,003 | ||||||
| ||||||||
Huntington Ingalls Industries, Inc. | 68,906 | 14,429,605 | ||||||
| ||||||||
L3 Technologies, Inc. | 71,431 | 15,125,514 | ||||||
| ||||||||
Lockheed Martin Corp. | 47,494 | 14,695,119 | ||||||
| ||||||||
Northrop Grumman Corp. | 52,012 | 15,081,399 | ||||||
| ||||||||
Raytheon Co. | 80,448 | 15,003,552 | ||||||
| ||||||||
Textron, Inc. | 276,213 | 14,998,366 | ||||||
| ||||||||
TransDigm Group, Inc.(b) | 39,400 | 17,103,146 | ||||||
| ||||||||
United Technologies Corp. | 115,018 | 14,454,312 | ||||||
| ||||||||
181,493,962 | ||||||||
| ||||||||
Agricultural & Farm Machinery-0.20% |
| |||||||
Deere & Co. | 91,699 | 15,042,304 | ||||||
| ||||||||
Agricultural Products-0.17% |
| |||||||
Archer-Daniels-Midland Co. | 306,304 | 13,017,920 | ||||||
| ||||||||
Air Freight & Logistics-0.77% |
| |||||||
C.H. Robinson Worldwide, Inc. | 161,420 | 14,589,140 | ||||||
| ||||||||
Expeditors International of Washington, Inc. | 193,874 | 14,530,856 | ||||||
| ||||||||
FedEx Corp. | 74,217 | 13,433,277 | ||||||
| ||||||||
United Parcel Service, Inc., Class B | 138,498 | 15,262,480 | ||||||
| ||||||||
57,815,753 | ||||||||
| ||||||||
Airlines-0.93% |
| |||||||
Alaska Air Group, Inc. | 219,329 | 13,532,599 | ||||||
| ||||||||
American Airlines Group, Inc. | 421,606 | 15,021,822 | ||||||
| ||||||||
Delta Air Lines, Inc. | 255,358 | 12,660,650 | ||||||
| ||||||||
Southwest Airlines Co. | 272,793 | 15,287,320 | ||||||
| ||||||||
United Continental Holdings, Inc. (b) | 155,735 | 13,675,090 | ||||||
| ||||||||
70,177,481 | ||||||||
| ||||||||
Alternative Carriers-0.14% |
| |||||||
CenturyLink, Inc. | 803,779 | 10,601,845 | ||||||
| ||||||||
Apparel Retail-0.97% |
| |||||||
Foot Locker, Inc. | 277,390 | 16,510,253 | ||||||
| ||||||||
Gap, Inc. (The) | 513,500 | 13,042,900 | ||||||
| ||||||||
L Brands, Inc. | 443,213 | 11,585,588 | ||||||
| ||||||||
Ross Stores, Inc. | 172,506 | 16,358,744 | ||||||
|
Shares | Value | |||||||
| ||||||||
Apparel Retail-(continued) |
| |||||||
TJX Cos., Inc. (The) | 302,172 | $ | 15,498,402 | |||||
| ||||||||
72,995,887 | ||||||||
| ||||||||
Apparel, Accessories & Luxury Goods-1.52% |
| |||||||
Capri Holdings Ltd.(b) | 360,154 | 16,423,022 | ||||||
| ||||||||
Hanesbrands, Inc. | 1,006,946 | 18,719,126 | ||||||
| ||||||||
PVH Corp. | 146,596 | 16,835,085 | ||||||
| ||||||||
Ralph Lauren Corp. | 134,622 | 16,850,636 | ||||||
| ||||||||
Tapestry, Inc. | 394,920 | 13,798,505 | ||||||
| ||||||||
Under Armour, Inc., Series A(b) | 367,641 | 8,290,305 | ||||||
| ||||||||
Under Armour, Inc., Series C(b) | 376,916 | 7,568,473 | ||||||
| ||||||||
VF Corp. | 181,826 | 15,884,319 | ||||||
| ||||||||
114,369,471 | ||||||||
| ||||||||
Application Software-1.71% |
| |||||||
Adobe Systems, Inc.(b) | 59,409 | 15,594,862 | ||||||
| ||||||||
ANSYS, Inc.(b) | 91,270 | 16,178,520 | ||||||
| ||||||||
Assurant, Inc.(b) | 316,155 | 18,099,874 | ||||||
| ||||||||
Autodesk, Inc.(b) | 103,910 | 16,938,369 | ||||||
| ||||||||
Citrix Systems, Inc.(b) | 125,198 | 13,208,389 | ||||||
| ||||||||
Intuit, Inc. | 68,004 | 16,805,829 | ||||||
| ||||||||
salesforce.com, inc.(b) | 99,709 | 16,317,378 | ||||||
| ||||||||
Synopsys, Inc.(b) | 155,895 | 15,851,404 | ||||||
| ||||||||
128,994,625 | ||||||||
| ||||||||
Asset Management & Custody Banks-1.82% |
| |||||||
Affiliated Managers Group, Inc. | 143,066 | 15,681,464 | ||||||
| ||||||||
Ameriprise Financial, Inc. | 124,005 | 16,322,778 | ||||||
| ||||||||
Bank of New York Mellon Corp. (The) | 280,753 | 14,733,918 | ||||||
| ||||||||
BlackRock, Inc. | 35,742 | 15,841,569 | ||||||
| ||||||||
Franklin Resources, Inc. | 435,583 | 14,204,362 | ||||||
| ||||||||
Invesco Ltd.(c) | 806,150 | 15,599,003 | ||||||
| ||||||||
Northern Trust Corp. | 158,206 | 14,744,799 | ||||||
| ||||||||
State Street Corp. | 215,083 | 15,458,015 | ||||||
| ||||||||
T. Rowe Price Group, Inc. | 148,573 | 14,921,186 | ||||||
| ||||||||
137,507,094 | ||||||||
| ||||||||
Auto Parts & Equipment-0.44% |
| |||||||
Aptiv PLC | 207,190 | 17,219,561 | ||||||
| ||||||||
BorgWarner, Inc. | 394,578 | 16,023,813 | ||||||
| ||||||||
33,243,374 | ||||||||
| ||||||||
Automobile Manufacturers-0.39% |
| |||||||
Ford Motor Co. | 1,603,786 | 14,065,203 | ||||||
| ||||||||
General Motors Co. | 389,294 | 15,369,327 | ||||||
| ||||||||
29,434,530 | ||||||||
| ||||||||
Automotive Retail-0.75% |
| |||||||
Advance Auto Parts, Inc. | 83,430 | 13,497,305 | ||||||
| ||||||||
AutoZone, Inc.(b) | 15,683 | 14,725,867 | ||||||
|
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 | |||||||
| ||||||||
Automotive Retail-(continued) |
| |||||||
CarMax, Inc.(b) | 223,235 | $ | 13,862,894 | |||||
| ||||||||
O’Reilly Automotive, Inc.(b) | 39,245 | 14,597,570 | ||||||
| ||||||||
56,683,636 | ||||||||
| ||||||||
Biotechnology-1.80% |
| |||||||
AbbVie, Inc. | 159,610 | 12,647,496 | ||||||
| ||||||||
Alexion Pharmaceuticals, Inc.(b) | 124,866 | 16,898,116 | ||||||
| ||||||||
Amgen, Inc. | 71,141 | 13,522,481 | ||||||
| ||||||||
Biogen, Inc.(b) | 43,440 | 14,248,754 | ||||||
| ||||||||
Celgene Corp.(b) | 200,355 | 16,653,508 | ||||||
| ||||||||
Gilead Sciences, Inc. | 208,391 | 13,549,583 | ||||||
| ||||||||
Incyte Corp.(b) | 206,252 | 17,785,110 | ||||||
| ||||||||
Regeneron Pharmaceuticals, Inc. (b) | 35,847 | 15,440,737 | ||||||
| ||||||||
Vertex Pharmaceuticals, Inc.(b) | 80,349 | 15,165,874 | ||||||
| ||||||||
135,911,659 | ||||||||
| ||||||||
Brewers-0.18% |
| |||||||
Molson Coors Brewing Co., Class B | 220,390 | 13,589,247 | ||||||
| ||||||||
Broadcasting-0.38% |
| |||||||
CBS Corp., Class B | 284,376 | 14,278,519 | ||||||
| ||||||||
Discovery, Inc., Class A(b) | 155,511 | 4,494,268 | ||||||
| ||||||||
Discovery, Inc., Class C(b) | 357,977 | 9,754,873 | ||||||
| ||||||||
28,527,660 | ||||||||
| ||||||||
Building Products-1.06% |
| |||||||
A.O. Smith Corp. | 329,974 | 17,135,550 | ||||||
| ||||||||
Allegion PLC | 158,242 | 14,235,450 | ||||||
| ||||||||
Fortune Brands Home & Security, Inc. | 338,056 | 15,929,199 | ||||||
| ||||||||
Johnson Controls International PLC | 427,409 | 15,074,715 | ||||||
| ||||||||
Masco Corp. | 462,568 | 17,374,054 | ||||||
| ||||||||
79,748,968 | ||||||||
| ||||||||
Cable & Satellite-0.59% |
| |||||||
Charter Communications, Inc., Class A(b) | 44,160 | 15,231,226 | ||||||
| ||||||||
Comcast Corp., Class A | 376,011 | 14,540,345 | ||||||
| ||||||||
DISH Network Corp., Class A(b) | 445,816 | 14,493,478 | ||||||
| ||||||||
44,265,049 | ||||||||
| ||||||||
Casinos & Gaming-0.40% |
| |||||||
MGM Resorts International | 516,411 | 13,813,994 | ||||||
| ||||||||
Wynn Resorts Ltd. | 128,061 | 16,204,839 | ||||||
| ||||||||
30,018,833 | ||||||||
| ||||||||
Commodity Chemicals-0.19% |
| |||||||
Lyondell Chemical Co., Class A | 165,949 | 14,191,958 | ||||||
| ||||||||
Communications Equipment-1.01% |
| |||||||
Arista Networks, Inc.(b) | 61,994 | 17,683,788 | ||||||
| ||||||||
Cisco Systems, Inc. | 298,216 | 15,438,642 | ||||||
| ||||||||
F5 Networks, Inc.(b) | 82,592 | 13,887,019 | ||||||
| ||||||||
Juniper Networks, Inc. | 492,050 | 13,324,714 | ||||||
| ||||||||
Motorola Solutions, Inc. | 107,889 | 15,441,074 | ||||||
| ||||||||
75,775,237 | ||||||||
|
Shares | Value | |||||||
| ||||||||
Computer & Electronics Retail-0.23% |
| |||||||
Best Buy Co., Inc. | 246,780 | $ | 16,988,335 | |||||
| ||||||||
Construction & Engineering-0.65% |
| |||||||
Fluor Corp. | 415,327 | 15,616,295 | ||||||
| ||||||||
Jacobs Engineering Group, Inc. | 232,780 | 17,174,508 | ||||||
| ||||||||
Quanta Services, Inc. | 451,412 | 16,088,324 | ||||||
| ||||||||
48,879,127 | ||||||||
| ||||||||
Construction Machinery & Heavy Trucks-0.79% |
| |||||||
Caterpillar, Inc. | 107,787 | 14,803,467 | ||||||
| ||||||||
Cummins, Inc. | 102,093 | 15,731,510 | ||||||
| ||||||||
PACCAR, Inc. | 241,545 | 16,376,751 | ||||||
| ||||||||
Wabtec Corp. | 176,406 | 12,923,483 | ||||||
| ||||||||
59,835,211 | ||||||||
| ||||||||
Construction Materials-0.40% |
| |||||||
Martin Marietta Materials, Inc. | 78,188 | 14,683,707 | ||||||
| ||||||||
Vulcan Materials Co. | 137,135 | 15,285,067 | ||||||
| ||||||||
29,968,774 | ||||||||
| ||||||||
Consumer Electronics-0.23% |
| |||||||
Garmin Ltd. | 209,767 | 17,614,135 | ||||||
| ||||||||
Consumer Finance-0.83% |
| |||||||
American Express Co. | 129,273 | 13,927,873 | ||||||
| ||||||||
Capital One Financial Corp. | 173,558 | 14,505,978 | ||||||
| ||||||||
Discover Financial Services | 221,032 | 15,828,101 | ||||||
| ||||||||
Synchrony Financial | 566,982 | 18,489,283 | ||||||
| ||||||||
62,751,235 | ||||||||
| ||||||||
Copper-0.22% |
| |||||||
Freeport-McMoRan, Inc. | 1,292,740 | 16,676,346 | ||||||
| ||||||||
Data Processing & Outsourced Services-2.83% |
| |||||||
Alliance Data Systems Corp. | 78,901 | 13,649,873 | ||||||
| ||||||||
Automatic Data Processing, Inc. | 101,351 | 15,509,743 | ||||||
| ||||||||
Broadridge Financial Solutions, Inc. | 141,408 | 14,317,560 | ||||||
| ||||||||
Fidelity National Information Services, Inc. | 130,645 | 14,129,257 | ||||||
| ||||||||
Fiserv, Inc.(b) | 179,132 | 15,170,689 | ||||||
| ||||||||
FleetCor Technologies, Inc.(b) | 77,237 | 18,017,847 | ||||||
| ||||||||
Global Payments, Inc. | 134,489 | 17,534,676 | ||||||
| ||||||||
Jack Henry & Associates, Inc. | 104,012 | 13,795,112 | ||||||
| ||||||||
Mastercard, Inc., Class A | 69,954 | 15,723,561 | ||||||
| ||||||||
Paychex, Inc. | 207,348 | 15,969,943 | ||||||
| ||||||||
PayPal Holdings, Inc.(b) | 159,034 | 15,596,464 | ||||||
| ||||||||
Total System Services, Inc. | 161,458 | 15,241,635 | ||||||
| ||||||||
Visa, Inc., Class A | 101,148 | 14,982,042 | ||||||
| ||||||||
Western Union Co. (The) | 751,609 | 13,431,253 | ||||||
| ||||||||
213,069,655 | ||||||||
| ||||||||
Department Stores-0.52% |
| |||||||
Kohl’s Corp. | 223,125 | 15,067,631 | ||||||
| ||||||||
Macy’s, Inc. | 446,398 | 11,066,206 | ||||||
|
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 | |||||||
| ||||||||
Department Stores-(continued) |
| |||||||
Nordstrom, Inc. | 281,099 | $ | 13,290,361 | |||||
| ||||||||
39,424,198 | ||||||||
| ||||||||
Distillers & Vintners-0.36% |
| |||||||
Brown-Forman Corp., Class B | 290,358 | 14,369,817 | ||||||
| ||||||||
Constellation Brands, Inc., Class A | 75,380 | 12,751,281 | ||||||
| ||||||||
27,121,098 | ||||||||
| ||||||||
Distributors-0.40% |
| |||||||
Genuine Parts Co. | 138,162 | 15,029,262 | ||||||
| ||||||||
LKQ Corp.(b) | 555,458 | 15,386,187 | ||||||
| ||||||||
30,415,449 | ||||||||
| ||||||||
Diversified Banks-1.00% |
| |||||||
Bank of America Corp. | 558,180 | 16,231,874 | ||||||
| ||||||||
Citigroup Inc. | 248,350 | 15,889,433 | ||||||
| ||||||||
JPMorgan Chase & Co. | 136,246 | 14,218,633 | ||||||
| ||||||||
U.S. Bancorp | 280,292 | 14,488,293 | ||||||
| ||||||||
Wells Fargo & Co. | 293,602 | 14,647,804 | ||||||
| ||||||||
75,476,037 | ||||||||
| ||||||||
Diversified Chemicals-0.39% |
| |||||||
DowDuPont, Inc. | 258,890 | 13,780,715 | ||||||
| ||||||||
Eastman Chemical Co. | 191,108 | 15,802,720 | ||||||
| ||||||||
29,583,435 | ||||||||
| ||||||||
Diversified Support Services-0.44% |
| |||||||
Cintas Corp. | 80,500 | 16,631,300 | ||||||
| ||||||||
Copart, Inc.(b) | 284,435 | 16,687,801 | ||||||
| ||||||||
33,319,101 | ||||||||
| ||||||||
Drug Retail-0.16% |
| |||||||
Walgreens Boots Alliance, Inc. | 173,536 | 12,354,028 | ||||||
| ||||||||
Electric Utilities-2.58% |
| |||||||
Alliant Energy Corp. | 301,506 | 13,830,080 | ||||||
| ||||||||
American Electric Power Co., Inc. | 170,781 | 13,858,878 | ||||||
| ||||||||
Duke Energy Corp. | 150,570 | 13,500,106 | ||||||
| ||||||||
Edison International | 229,111 | 13,721,458 | ||||||
| ||||||||
Entergy Corp. | 152,197 | 14,204,546 | ||||||
| ||||||||
Evergy, Inc. | 225,705 | 12,619,167 | ||||||
| ||||||||
Eversource Energy | 195,846 | 13,672,009 | ||||||
| ||||||||
Exelon Corp. | 290,358 | 14,108,495 | ||||||
| ||||||||
FirstEnergy Corp. | 349,290 | 14,233,568 | ||||||
| ||||||||
NextEra Energy, Inc. | 75,392 | 14,152,586 | ||||||
| ||||||||
Pinnacle West Capital Corp. | 149,434 | 14,007,943 | ||||||
| ||||||||
PPL Corp. | 446,690 | 14,370,017 | ||||||
| ||||||||
Southern Co. (The) | 288,701 | 14,345,553 | ||||||
| ||||||||
Xcel Energy, Inc. | 257,136 | 14,106,481 | ||||||
| ||||||||
194,730,887 | ||||||||
| ||||||||
Electrical Components & Equipment-0.82% |
| |||||||
AMETEK, Inc. | 194,121 | 15,448,149 | ||||||
| ||||||||
Eaton Corp. PLC | 193,599 | 15,443,392 | ||||||
| ||||||||
Emerson Electric Co. | 226,079 | 15,407,284 | ||||||
|
Shares | Value | |||||||
| ||||||||
Electrical Components & Equipment-(continued) |
| |||||||
Rockwell Automation, Inc. | 87,177 | $ | 15,566,325 | |||||
| ||||||||
61,865,150 | ||||||||
| ||||||||
Electronic Components-0.41% |
| |||||||
Amphenol Corp., Class A | 164,154 | 15,425,552 | ||||||
| ||||||||
Corning, Inc. | 434,752 | 15,133,717 | ||||||
| ||||||||
30,559,269 | ||||||||
| ||||||||
Electronic Equipment & Instruments-0.47% |
| |||||||
FLIR Systems, Inc. | 316,889 | 16,303,939 | ||||||
| ||||||||
Keysight Technologies, Inc.(b) | 222,218 | 18,757,421 | ||||||
| ||||||||
35,061,360 | ||||||||
| ||||||||
Electronic Manufacturing Services-0.44% |
| |||||||
IPG Photonics Corp.(b) | 115,807 | 17,953,559 | ||||||
| ||||||||
TE Connectivity Ltd. | 187,181 | 15,365,689 | ||||||
| ||||||||
33,319,248 | ||||||||
| ||||||||
Environmental & Facilities Services-0.59% |
| |||||||
Republic Services, Inc. | 183,609 | 14,400,454 | ||||||
| ||||||||
Rollins, Inc. | 373,339 | 14,806,625 | ||||||
| ||||||||
Waste Management, Inc. | 149,926 | 15,180,007 | ||||||
| ||||||||
44,387,086 | ||||||||
| ||||||||
Fertilizers & Agricultural Chemicals-0.58% |
| |||||||
CF Industries Holdings, Inc. | 324,875 | 13,709,725 | ||||||
| ||||||||
FMC Corp. | 176,952 | 15,837,204 | ||||||
| ||||||||
Mosaic Co. (The) | 441,780 | 13,814,461 | ||||||
| ||||||||
43,361,390 | ||||||||
| ||||||||
Financial Exchanges & Data-1.38% |
| |||||||
Cboe Global Markets, Inc. | 135,436 | 12,989,667 | ||||||
| ||||||||
CME Group, Inc., Class A | 72,821 | 13,246,868 | ||||||
| ||||||||
Intercontinental Exchange, Inc. | 177,227 | 13,673,063 | ||||||
| ||||||||
Moody’s Corp. | 93,898 | 16,255,622 | ||||||
| ||||||||
MSCI, Inc. | 90,822 | 16,776,640 | ||||||
| ||||||||
Nasdaq, Inc. | 157,895 | 14,458,445 | ||||||
| ||||||||
S&P Global, Inc. | 82,007 | 16,431,742 | ||||||
| ||||||||
103,832,047 | ||||||||
| ||||||||
Food Distributors-0.19% |
| |||||||
Sysco Corp. | 208,773 | 14,102,616 | ||||||
| ||||||||
Food Retail-0.18% |
| |||||||
Kroger Co. (The) | 462,411 | 13,562,515 | ||||||
| ||||||||
Footwear-0.21% |
| |||||||
NIKE, Inc., Class B | 188,394 | 16,151,018 | ||||||
| ||||||||
Gas Utilities-0.22% |
| |||||||
Atmos Energy Corp. | 169,268 | 16,732,142 | ||||||
| ||||||||
General Merchandise Stores-0.60% |
| |||||||
Dollar General Corp. | 130,159 | 15,418,635 | ||||||
| ||||||||
Dollar Tree, Inc.(b) | 159,145 | 15,330,438 | ||||||
|
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 | |||||||
| ||||||||
General Merchandise Stores-(continued) |
| |||||||
Target Corp. | 203,427 | $ | 14,776,937 | |||||
| ||||||||
45,526,010 | ||||||||
| ||||||||
Gold-0.19% | ||||||||
Newmont Mining Corp. | 410,214 | 13,996,502 | ||||||
| ||||||||
Health Care Distributors-0.76% |
| |||||||
AmerisourceBergen Corp. | 173,030 | 14,413,399 | ||||||
| ||||||||
Cardinal Health, Inc. | 272,956 | 14,832,429 | ||||||
| ||||||||
Henry Schein, Inc.(b) | 216,762 | 12,853,987 | ||||||
| ||||||||
McKesson Corp. | 117,128 | 14,893,996 | ||||||
| ||||||||
56,993,811 | ||||||||
| ||||||||
Health Care Equipment-3.03% |
| |||||||
Abbott Laboratories | 193,106 | 14,988,888 | ||||||
| ||||||||
ABIOMED, Inc.(b) | 43,215 | 14,455,417 | ||||||
| ||||||||
Baxter International, Inc. | 207,979 | 15,542,271 | ||||||
| ||||||||
Becton, Dickinson and Co. | 59,037 | 14,687,815 | ||||||
| ||||||||
Boston Scientific Corp.(b) | 381,682 | 15,313,082 | ||||||
| ||||||||
Danaher Corp. | 136,097 | 17,287,041 | ||||||
| ||||||||
Edwards Lifesciences Corp.(b) | 85,331 | 14,445,685 | ||||||
| ||||||||
Hologic, Inc.(b) | 325,804 | 15,361,659 | ||||||
| ||||||||
IDEXX Laboratories, Inc.(b) | 71,814 | 15,154,908 | ||||||
| ||||||||
Intuitive Surgical, Inc.(b) | 27,783 | 15,214,249 | ||||||
| ||||||||
Medtronic PLC | 145,798 | 13,194,719 | ||||||
| ||||||||
ResMed, Inc. | 120,996 | 12,393,620 | ||||||
| ||||||||
Stryker Corp. | 82,037 | 15,464,795 | ||||||
| ||||||||
Teleflex Inc. | 13,118 | 3,802,121 | ||||||
| ||||||||
Varian Medical Systems, Inc.(b) | 114,728 | 15,414,854 | ||||||
| ||||||||
Zimmer Biomet Holdings, Inc. | 125,370 | 15,560,924 | ||||||
| ||||||||
228,282,048 | ||||||||
| ||||||||
Health Care Facilities-0.41% |
| |||||||
HCA Healthcare, Inc. | 107,821 | 14,991,432 | ||||||
| ||||||||
Universal Health Services Inc., Class B | 112,787 | 15,658,219 | ||||||
| ||||||||
30,649,651 | ||||||||
| ||||||||
Health Care REITs-0.56% |
| |||||||
HCP, Inc. | 471,995 | 14,523,286 | ||||||
| ||||||||
Ventas, Inc. | 218,418 | 13,705,729 | ||||||
| ||||||||
Welltower, Inc. | 188,889 | 14,036,342 | ||||||
| ||||||||
42,265,357 | ||||||||
| ||||||||
Health Care Services-0.86% |
| |||||||
Cigna Corp. | 66,534 | 11,606,191 | ||||||
| ||||||||
CVS Health Corp. | 190,097 | 10,993,309 | ||||||
| ||||||||
DaVita, Inc.(b) | 235,508 | 13,400,405 | ||||||
| ||||||||
Laboratory Corp. of America Holdings(b) | 99,440 | 14,740,986 | ||||||
| ||||||||
Quest Diagnostics, Inc. | 159,853 | 13,835,277 | ||||||
| ||||||||
64,576,168 | ||||||||
| ||||||||
Health Care Supplies-0.63% |
| |||||||
Align Technology, Inc.(b) | 63,386 | 16,415,073 | ||||||
| ||||||||
Cooper Cos., Inc. (The) | 54,663 | 15,633,071 | ||||||
|
Shares | Value | |||||||
| ||||||||
Health Care Supplies-(continued) |
| |||||||
DENTSPLY SIRONA, Inc. | 369,603 | $ | 15,434,621 | |||||
| ||||||||
47,482,765 | ||||||||
| ||||||||
Health Care Technology-0.18% |
| |||||||
Cerner Corp.(b) | 244,396 | 13,673,956 | ||||||
| ||||||||
Home Furnishings-0.44% |
| |||||||
Leggett & Platt, Inc. | 377,882 | 17,163,400 | ||||||
| ||||||||
Mohawk Industries, Inc.(b) | 116,807 | 15,899,769 | ||||||
| ||||||||
33,063,169 | ||||||||
| ||||||||
Home Improvement Retail-0.40% |
| |||||||
Home Depot, Inc. (The) | 79,309 | 14,683,268 | ||||||
| ||||||||
Lowe’s Cos., Inc. | 146,361 | 15,381,078 | ||||||
| ||||||||
30,064,346 | ||||||||
| ||||||||
Homebuilding-0.61% |
| |||||||
D.R. Horton, Inc. | 384,908 | 14,969,072 | ||||||
| ||||||||
Lennar Corp., Class A | 339,822 | 16,304,660 | ||||||
| ||||||||
PulteGroup, Inc. | 533,551 | 14,405,877 | ||||||
| ||||||||
45,679,609 | ||||||||
| ||||||||
Hotel & Resort REITs-0.20% |
| |||||||
Host Hotels & Resorts, Inc. | 768,518 | 15,070,638 | ||||||
| ||||||||
Hotels, Resorts & Cruise Lines-1.02% |
| |||||||
Carnival Corp. | 242,574 | 14,011,074 | ||||||
| ||||||||
Hilton Worldwide Holdings, Inc. | 190,150 | 15,801,465 | ||||||
| ||||||||
Marriott International, Inc., Class A | 126,919 | 15,899,143 | ||||||
| ||||||||
Norwegian Cruise Line Holdings Ltd. (b) | 286,943 | 15,933,945 | ||||||
| ||||||||
Royal Caribbean Cruises Ltd. | 127,595 | 15,117,456 | ||||||
| ||||||||
76,763,083 | ||||||||
| ||||||||
Household Appliances-0.23% |
| |||||||
Whirlpool Corp. | 120,708 | 17,081,389 | ||||||
| ||||||||
Household Products-0.90% |
| |||||||
Church &Dwight Co., Inc. | 198,810 | 13,081,698 | ||||||
| ||||||||
Clorox Co. (The) | 83,054 | 13,125,024 | ||||||
| ||||||||
Colgate-Palmolive Co. | 209,670 | 13,810,963 | ||||||
| ||||||||
Kimberly-Clark Corp. | 116,370 | 13,595,507 | ||||||
| ||||||||
Procter & Gamble Co. (The) | 141,393 | 13,934,280 | ||||||
| ||||||||
67,547,472 | ||||||||
| ||||||||
Housewares & Specialties-0.13% |
| |||||||
Newell Brands, Inc. | 618,852 | 10,043,968 | ||||||
| ||||||||
Human Resource & Employment Services-0.21% |
| |||||||
Robert Half International, Inc. | 236,569 | 16,131,640 | ||||||
| ||||||||
Hypermarkets& Super Centers-0.39% |
| |||||||
Costco Wholesale Corp. | 65,991 | 14,434,872 | ||||||
| ||||||||
Walmart, Inc. | 148,767 | 14,726,445 | ||||||
| ||||||||
29,161,317 | ||||||||
| ||||||||
Independent Power Producers & Energy Traders-0.37% |
| |||||||
AES Corp. (The) | 856,693 | 14,760,820 | ||||||
|
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 | |||||||
| ||||||||
Independent Power Producers & Energy Traders-(continued) |
| |||||||
NRG Energy, Inc. | 322,879 | $ | 13,457,597 | |||||
| ||||||||
28,218,417 | ||||||||
| ||||||||
Industrial Conglomerates-0.89% |
| |||||||
3M Co. | 69,679 | 14,450,728 | ||||||
| ||||||||
General Electric Co. | 1,998,804 | 20,767,573 | ||||||
| ||||||||
Honeywell International, Inc. | 100,147 | 15,429,648 | ||||||
| ||||||||
Roper Technologies, Inc. | 49,898 | 16,149,488 | ||||||
| ||||||||
66,797,437 | ||||||||
| ||||||||
Industrial Gases-0.41% |
| |||||||
Air Products and Chemicals, Inc. | 87,923 | 15,929,889 | ||||||
| ||||||||
Linde PLC (United Kingdom) | 87,071 | 15,084,180 | ||||||
| ||||||||
31,014,069 | ||||||||
| ||||||||
Industrial Machinery-2.04% |
| |||||||
Dover Corp. | 179,038 | 16,208,310 | ||||||
| ||||||||
Flowserve Corp. | 327,130 | 14,527,843 | ||||||
| ||||||||
Fortive Corp. | 198,435 | 16,186,343 | ||||||
| ||||||||
Illinois Tool Works, Inc. | 104,274 | 15,023,798 | ||||||
| ||||||||
Ingersoll-Rand PLC | 142,380 | 15,029,633 | ||||||
| ||||||||
Parker-Hannifin Corp. | 90,479 | 15,938,781 | ||||||
| ||||||||
Pentair PLC (United Kingdom) | 349,379 | 14,862,583 | ||||||
| ||||||||
Snap-on, Inc. | 92,751 | 14,840,160 | ||||||
| ||||||||
Stanley Black & Decker, Inc. | 115,445 | 15,288,381 | ||||||
| ||||||||
Xylem, Inc. | 208,805 | 15,775,218 | ||||||
| ||||||||
153,681,050 | ||||||||
| ||||||||
Industrial REITs-0.39% |
| |||||||
Duke Realty Corp. | 486,965 | 14,399,555 | ||||||
| ||||||||
Prologis, Inc. | 210,835 | 14,771,100 | ||||||
| ||||||||
29,170,655 | ||||||||
| ||||||||
Insurance Brokers-0.80% |
| |||||||
Aon PLC | 88,826 | 15,236,324 | ||||||
| ||||||||
Arthur J. Gallagher & Co. | 184,203 | 14,787,817 | ||||||
| ||||||||
Marsh & McLennan Cos., Inc. | 164,629 | 15,313,790 | ||||||
| ||||||||
Willis Towers Watson PLC | 88,866 | 15,286,729 | ||||||
| ||||||||
60,624,660 | ||||||||
| ||||||||
Integrated Oil & Gas-0.56% |
| |||||||
Chevron Corp. | 120,040 | 14,354,383 | ||||||
| ||||||||
Exxon Mobil Corp. | 180,791 | 14,287,913 | ||||||
| ||||||||
Occidental Petroleum Corp. | 209,896 | 13,884,620 | ||||||
| ||||||||
42,526,916 | ||||||||
| ||||||||
Integrated Telecommunication Services-0.37% |
| |||||||
AT&T Inc. | 452,159 | 14,071,188 | ||||||
| ||||||||
Verizon Communications Inc. | 239,387 | 13,625,908 | ||||||
| ||||||||
27,697,096 | ||||||||
| ||||||||
Interactive Home Entertainment-0.53% |
| |||||||
Activision Blizzard, Inc. | 286,162 | 12,058,867 | ||||||
| ||||||||
Electronic Arts, Inc.(b) | 170,462 | 16,326,850 | ||||||
|
Shares | Value | |||||||
| ||||||||
Interactive Home Entertainment-(continued) |
| |||||||
Take-Two Interactive Software, Inc. (b) | 132,072 | $ | 11,524,603 | |||||
| ||||||||
39,910,320 | ||||||||
| ||||||||
Interactive Media & Services-0.71% |
| |||||||
Alphabet, Inc., Class A(b) | 6,429 | 7,242,590 | ||||||
| ||||||||
Alphabet, Inc., Class C(b) | 6,623 | 7,417,230 | ||||||
| ||||||||
Facebook, Inc., Class A(b) | 94,850 | 15,313,532 | ||||||
| ||||||||
TripAdvisor, Inc.(b) | 225,110 | 11,969,099 | ||||||
| ||||||||
Twitter, Inc.(b) | 380,937 | 11,725,241 | ||||||
| ||||||||
53,667,692 | ||||||||
| ||||||||
Internet & Direct Marketing Retail-0.78% |
| |||||||
Amazon.com, Inc.(b)(d) | 8,583 | 14,074,661 | ||||||
| ||||||||
Booking Holdings, Inc.(b) | 7,561 | 12,831,320 | ||||||
| ||||||||
eBay, Inc.(b) | 472,648 | 17,558,873 | ||||||
| ||||||||
Expedia Group, Inc. | 115,445 | 14,235,523 | ||||||
| ||||||||
58,700,377 | ||||||||
| ||||||||
Internet Services & Infrastructure-0.41% |
| |||||||
Akamai Technologies, Inc.(b) | 209,896 | 14,621,355 | ||||||
| ||||||||
VeriSign, Inc.(b) | 89,501 | 15,934,758 | ||||||
| ||||||||
30,556,113 | ||||||||
| ||||||||
Investment Banking & Brokerage-1.01% |
| |||||||
Charles Schwab Corp. (The) | 331,737 | 15,263,219 | ||||||
| ||||||||
E*TRADE Financial Corp. | 313,760 | 15,371,102 | ||||||
| ||||||||
Goldman Sachs Group, Inc. (The) | 79,088 | 15,556,610 | ||||||
| ||||||||
Morgan Stanley | 344,708 | 14,470,842 | ||||||
| ||||||||
Raymond James Financial, Inc. | 183,807 | 15,178,782 | ||||||
| ||||||||
75,840,555 | ||||||||
| ||||||||
IT Consulting & Other Services-0.98% |
| |||||||
Accenture PLC, Class A | 87,855 | 14,178,040 | ||||||
| ||||||||
Cognizant Technology Solutions Corp., Class A | 201,626 | 14,311,414 | ||||||
| ||||||||
DXC Technology Co. | 240,736 | 15,854,873 | ||||||
| ||||||||
Gartner, Inc.(b) | 98,211 | 13,975,425 | ||||||
| ||||||||
International Business Machines Corp. | 113,963 | 15,741,709 | ||||||
| ||||||||
74,061,461 | ||||||||
| ||||||||
Leisure Products-0.40% |
| |||||||
Hasbro Inc. | 162,553 | 13,800,750 | ||||||
| ||||||||
Mattel, Inc.(b) | 1,158,970 | 16,712,347 | ||||||
| ||||||||
30,513,097 | ||||||||
| ||||||||
Life & Health Insurance-1.69% |
| |||||||
Aflac, Inc. | 306,304 | 15,051,778 | ||||||
| ||||||||
Brighthouse Financial, Inc.(b) | 427,944 | 16,569,992 | ||||||
| ||||||||
Lincoln National Corp. | 255,262 | 15,958,980 | ||||||
| ||||||||
MetLife, Inc. | 351,356 | 15,877,778 | ||||||
| ||||||||
Principal Financial Group, Inc. | 313,256 | 16,489,796 | ||||||
| ||||||||
Prudential Financial, Inc. | 165,888 | 15,900,365 | ||||||
| ||||||||
Torchmark Corp. | 177,135 | 14,624,266 | ||||||
| ||||||||
Unum Group | 460,231 | 17,194,230 | ||||||
| ||||||||
127,667,185 | ||||||||
|
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 | |||||||
| ||||||||
Life Sciences Tools & Services-1.44% |
| |||||||
Agilent Technologies, Inc. | 197,004 | $ | 15,649,998 | |||||
| ||||||||
Illumina, Inc.(b) | 41,855 | 13,090,988 | ||||||
| ||||||||
IQVIA Holdings, Inc.(b) | 115,778 | 16,220,498 | ||||||
| ||||||||
Mettler-Toledo International, Inc.(b) | 23,273 | 15,846,818 | ||||||
| ||||||||
PerkinElmer, Inc. | 163,194 | 15,366,347 | ||||||
| ||||||||
Thermo Fisher Scientific, Inc. | 58,346 | 15,144,871 | ||||||
| ||||||||
Waters Corp.(b) | 72,308 | 17,514,444 | ||||||
| ||||||||
108,833,964 | ||||||||
| ||||||||
Managed Health Care-0.90% |
| |||||||
Anthem, Inc. | 49,583 | 14,911,096 | ||||||
| ||||||||
Centene Corp.(b) | 214,290 | 13,048,118 | ||||||
| ||||||||
Humana, Inc. | 45,557 | 12,985,567 | ||||||
| ||||||||
UnitedHealth Group, Inc. | 51,559 | 12,488,621 | ||||||
| ||||||||
WellCare Health Plans, Inc.(b) | 57,647 | 14,618,126 | ||||||
| ||||||||
68,051,528 | ||||||||
| ||||||||
Metal & Glass Containers-0.21% |
| |||||||
Ball Corp. | 284,612 | 15,591,045 | ||||||
| ||||||||
Motorcycle Manufacturers-0.19% | ||||||||
Harley-Davidson, Inc. | 393,555 | 14,608,762 | ||||||
| ||||||||
Movies & Entertainment-0.80% |
| |||||||
Netflix, Inc.(b) | 51,207 | 18,337,227 | ||||||
| ||||||||
Twenty-First Century Fox, Inc., Class A | 190,810 | 9,622,548 | ||||||
| ||||||||
Twenty-First Century Fox, Inc., Class B | 88,176 | 4,422,908 | ||||||
| ||||||||
Viacom, Inc., Class B | 478,272 | 13,975,108 | ||||||
| ||||||||
Walt Disney Co. (The) | 121,784 | 13,742,107 | ||||||
| ||||||||
60,099,898 | ||||||||
| ||||||||
Multi-line Insurance-0.82% |
| |||||||
American International Group, Inc. | 364,477 | 15,745,407 | ||||||
| ||||||||
Assurant, Inc. | 151,387 | 15,591,347 | ||||||
| ||||||||
Hartford Financial Services Group, Inc. (The) | 331,094 | 16,342,800 | ||||||
| ||||||||
Loews Corp. | 303,178 | 14,437,336 | ||||||
| ||||||||
62,116,890 | ||||||||
| ||||||||
Multi-Sector Holdings-0.39% |
| |||||||
Berkshire Hathaway, Inc., Class B(b) | 68,320 | 13,752,816 | ||||||
| ||||||||
Jefferies Financial Group, Inc. | 774,617 | 15,701,487 | ||||||
| ||||||||
29,454,303 | ||||||||
| ||||||||
Multi-Utilities-1.84% |
| |||||||
Ameren Corp. | 195,734 | 13,944,090 | ||||||
| ||||||||
CenterPoint Energy, Inc. | 466,356 | 14,055,970 | ||||||
| ||||||||
CMS Energy Corp. | 258,351 | 14,054,294 | ||||||
| ||||||||
Consolidated Edison, Inc. | 162,999 | 13,439,268 | ||||||
| ||||||||
Dominion Energy, Inc. | 177,642 | 13,161,496 | ||||||
| ||||||||
DTE Energy Co. | 115,582 | 14,281,312 | ||||||
| ||||||||
NiSource, Inc. | 497,062 | 13,410,733 | ||||||
| ||||||||
Public Service Enterprise Group, Inc. | 245,362 | 14,429,739 | ||||||
| ||||||||
Sempra Energy | 115,319 | 13,889,020 | ||||||
|
Shares | Value | |||||||
| ||||||||
Multi-Utilities-(continued) |
| |||||||
WEC Energy Group, Inc. | 183,758 | $ | 14,017,060 | |||||
| ||||||||
138,682,982 | ||||||||
| ||||||||
Office REITs-0.76% |
| |||||||
Alexandria Real Estate Equities, Inc. | 111,544 | 15,157,714 | ||||||
| ||||||||
Boston Properties, Inc. | 108,670 | 14,419,422 | ||||||
| ||||||||
SL Green Realty Corp. | 153,049 | 13,884,605 | ||||||
| ||||||||
Vornado Realty Trust | 199,886 | 13,454,327 | ||||||
| ||||||||
56,916,068 | ||||||||
| ||||||||
Oil & Gas Drilling-0.17% |
| |||||||
Helmerich & Payne, Inc. | 233,656 | 12,664,155 | ||||||
| ||||||||
Oil & Gas Equipment & Services-1.01% |
| |||||||
Baker Hughes a GE Co. | 637,028 | 16,804,799 | ||||||
| ||||||||
Halliburton Co. | 471,181 | 14,460,545 | ||||||
| ||||||||
National Oilwell Varco, Inc. | 512,153 | 14,411,985 | ||||||
| ||||||||
Schlumberger Ltd. | 349,469 | 15,397,604 | ||||||
| ||||||||
TechnipFMC PLC (United Kingdom) | 678,463 | 15,122,940 | ||||||
| ||||||||
76,197,873 | ||||||||
| ||||||||
Oil & Gas Exploration & Production-2.45% |
| |||||||
Anadarko Petroleum Corp. | 268,188 | 11,666,178 | ||||||
| ||||||||
Apache Corp. | 451,860 | 14,992,715 | ||||||
| ||||||||
Cabot Oil & Gas Corp. | 586,197 | 14,432,170 | ||||||
| ||||||||
Cimarex Energy Co. | 199,361 | 14,336,050 | ||||||
| ||||||||
Concho Resources Inc.(b) | 118,798 | 13,067,780 | ||||||
| ||||||||
ConocoPhillips | 211,684 | 14,362,760 | ||||||
| ||||||||
Devon Energy Corp. | 528,802 | 15,604,947 | ||||||
| ||||||||
Diamondback Energy, Inc. | 147,387 | 15,170,544 | ||||||
| ||||||||
EOG Resources, Inc. | 136,532 | 12,834,008 | ||||||
| ||||||||
Hess Corp. | 268,452 | 15,529,948 | ||||||
| ||||||||
Marathon Oil Corp. | 908,527 | 15,081,548 | ||||||
| ||||||||
Noble Energy, Inc. | 627,088 | 13,889,999 | ||||||
| ||||||||
Pioneer Natural Resources Co. | 99,636 | 14,043,694 | ||||||
| ||||||||
185,012,341 | ||||||||
| ||||||||
Oil & Gas Refining & Marketing-0.76% |
| |||||||
HollyFrontier Corp. | 252,666 | 12,936,499 | ||||||
| ||||||||
Marathon Petroleum Corp. | 228,231 | 14,152,604 | ||||||
| ||||||||
Phillips 66 | 157,367 | 15,163,884 | ||||||
| ||||||||
Valero Energy Corp. | 186,415 | 15,204,008 | ||||||
| ||||||||
57,456,995 | ||||||||
| ||||||||
Oil & Gas Storage & Transportation-0.61% |
| |||||||
Kinder Morgan, Inc. | 845,038 | 16,190,928 | ||||||
| ||||||||
ONEOK, Inc. | 227,018 | 14,588,177 | ||||||
| ||||||||
Williams Cos., Inc. (The) | 582,697 | 15,552,183 | ||||||
| ||||||||
46,331,288 | ||||||||
| ||||||||
Packaged Foods & Meats-2.11% | ||||||||
Campbell Soup Co. | 348,933 | 12,568,567 | ||||||
| ||||||||
Conagra Brands, Inc. | 457,151 | 10,683,619 | ||||||
| ||||||||
General Mills, Inc. | 365,549 | 17,228,324 | ||||||
| ||||||||
Hershey Co. (The) | 126,672 | 14,020,057 | ||||||
|
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 | |||||||
| ||||||||
Packaged Foods & Meats-(continued) |
| |||||||
Hormel Foods Corp. | 306,579 | $ | 13,293,265 | |||||
| ||||||||
JM Smucker Co. (The) | 134,080 | 14,200,413 | ||||||
| ||||||||
Kellogg Co. | 226,378 | 12,736,026 | ||||||
| ||||||||
Kraft Heinz Co. (The) | 287,911 | 9,555,766 | ||||||
| ||||||||
Lamb Weston Holdings, Inc. | 180,195 | 12,489,315 | ||||||
| ||||||||
McCormick & Co, Inc. | 90,150 | 12,258,597 | ||||||
| ||||||||
Mondelez International, Inc., Class A | 313,760 | 14,796,922 | ||||||
| ||||||||
Tyson Foods, Inc., Class A | 247,092 | 15,235,693 | ||||||
| ||||||||
159,066,564 | ||||||||
| ||||||||
Paper Packaging-0.98% |
| |||||||
Avery Dennison Corp. | 149,827 | 16,187,309 | ||||||
| ||||||||
International Paper Co. | 314,554 | 14,412,864 | ||||||
| ||||||||
Packaging Corp. of America | 146,235 | 13,978,604 | ||||||
| ||||||||
Sealed Air Corp. | 402,599 | 17,561,369 | ||||||
| ||||||||
WestRock Co. | 307,961 | 11,511,582 | ||||||
| ||||||||
73,651,728 | ||||||||
| ||||||||
Personal Products-0.48% |
| |||||||
Coty, Inc., Class A | 1,869,256 | 20,561,816 | ||||||
| ||||||||
Estee Lauder Cos., Inc. (The), Class A | 101,081 | 15,863,652 | ||||||
| ||||||||
36,425,468 | ||||||||
| ||||||||
Pharmaceuticals-1.83% |
| |||||||
Allergan PLC | 92,182 | 12,694,383 | ||||||
| ||||||||
Bristol-Myers Squibb Co. | 262,168 | 13,543,599 | ||||||
| ||||||||
Eli Lilly and Co. | 122,077 | 15,417,104 | ||||||
| ||||||||
Johnson & Johnson | 102,738 | 14,038,120 | ||||||
| ||||||||
Merck & Co., Inc. | 178,664 | 14,523,597 | ||||||
| ||||||||
Mylan N.V.(b) | 470,370 | 12,413,064 | ||||||
| ||||||||
Nektar Therapeutics(b) | 374,260 | 15,172,500 | ||||||
| ||||||||
Perrigo Co. PLC | 239,765 | 11,676,556 | ||||||
| ||||||||
Pfizer, Inc. | 311,969 | 13,523,856 | ||||||
| ||||||||
Zoetis, Inc. | 154,485 | 14,557,122 | ||||||
| ||||||||
137,559,901 | ||||||||
| ||||||||
Property & Casualty Insurance-1.02% |
| |||||||
Allstate Corp. (The) | 172,310 | 16,262,618 | ||||||
| ||||||||
Chubb Ltd. | 106,651 | 14,280,569 | ||||||
| ||||||||
Cincinnati Financial Corp. | 172,072 | 14,939,291 | ||||||
| ||||||||
Progressive Corp. (The) | 220,390 | 16,066,431 | ||||||
| ||||||||
Travelers Cos., Inc. (The) | 113,348 | 15,065,082 | ||||||
| ||||||||
76,613,991 | ||||||||
| ||||||||
Publishing-0.19% |
| |||||||
News Corp., Class A | 839,715 | 10,933,089 | ||||||
| ||||||||
News Corp., Class B | 271,086 | 3,608,155 | ||||||
| ||||||||
14,541,244 | ||||||||
| ||||||||
Railroads-0.83% |
| |||||||
CSX Corp. | 207,568 | 15,083,967 | ||||||
| ||||||||
Kansas City Southern | 141,349 | 15,356,155 | ||||||
| ||||||||
Norfolk Southern Corp. | 90,563 | 16,237,946 | ||||||
|
Shares | Value | |||||||
| ||||||||
Railroads-(continued) |
| |||||||
Union Pacific Corp. | 95,841 | $ | 16,072,536 | |||||
| ||||||||
62,750,604 | ||||||||
| ||||||||
Real Estate Services-0.22% |
| |||||||
CBRE Group, Inc., Class A(b) | 332,949 | 16,567,542 | ||||||
| ||||||||
Regional Banks-3.01% |
| |||||||
BB&T Corp. | 299,261 | 15,253,333 | ||||||
| ||||||||
Citizens Financial Group, Inc. | 451,561 | 16,680,663 | ||||||
| ||||||||
Comerica, Inc. | 198,089 | 17,255,533 | ||||||
| ||||||||
Fifth Third Bancorp | 577,038 | 15,914,708 | ||||||
| ||||||||
First Republic Bank | 147,371 | 15,471,008 | ||||||
| ||||||||
Huntington Bancshares, Inc. | 1,122,782 | 16,179,289 | ||||||
| ||||||||
KeyCorp | 903,123 | 15,949,152 | ||||||
| ||||||||
M&T Bank Corp. | 92,444 | 15,998,359 | ||||||
| ||||||||
People’s United Financial, Inc. | 896,017 | 15,913,262 | ||||||
| ||||||||
PNC Financial Services Group, Inc. (The) | 115,309 | 14,531,240 | ||||||
| ||||||||
Regions Financial Corp. | 1,014,422 | 16,636,521 | ||||||
| ||||||||
SunTrust Banks, Inc. | 261,867 | 16,987,312 | ||||||
| ||||||||
SVB Financial Group(b) | 71,275 | 17,616,329 | ||||||
| ||||||||
Zions Bancorp. N.A. | 328,942 | 16,808,936 | ||||||
| ||||||||
227,195,645 | ||||||||
| ||||||||
Reinsurance-0.19% |
| |||||||
Everest Re Group, Ltd. | 63,462 | 14,349,393 | ||||||
| ||||||||
Research & Consulting Services-0.79% |
| |||||||
Equifax, Inc. | 140,607 | 15,397,872 | ||||||
| ||||||||
IHS Markit Ltd.(b) | 279,833 | 14,878,721 | ||||||
| ||||||||
Nielsen Holdings PLC | 531,269 | 13,919,248 | ||||||
| ||||||||
Verisk Analytics, Inc., Class A(b) | 120,040 | 15,176,657 | ||||||
| ||||||||
59,372,498 | ||||||||
| ||||||||
Residential REITs-1.13% |
| |||||||
Apartment Investment & Management Co., Class A | 280,919 | 13,745,367 | ||||||
| ||||||||
AvalonBay Communities, Inc. | 73,109 | 14,229,205 | ||||||
| ||||||||
Equity Residential | 195,370 | 14,396,815 | ||||||
| ||||||||
Essex Property Trust, Inc. | 52,097 | 14,578,824 | ||||||
| ||||||||
Mid-America Apartment Communities, Inc. | 134,741 | 13,956,473 | ||||||
| ||||||||
UDR, Inc. | 325,261 | 14,448,094 | ||||||
| ||||||||
85,354,778 | ||||||||
| ||||||||
Restaurants-1.00% |
| |||||||
Chipotle Mexican Grill, Inc.(b) | 29,845 | 18,131,733 | ||||||
| ||||||||
Darden Restaurants, Inc. | 132,404 | 14,843,812 | ||||||
| ||||||||
McDonald’s Corp. | 74,549 | 13,705,088 | ||||||
| ||||||||
Starbucks Corp. | 209,125 | 14,693,123 | ||||||
| ||||||||
Yum! Brands, Inc. | 149,010 | 14,081,445 | ||||||
| ||||||||
75,455,201 | ||||||||
| ||||||||
Retail REITs-1.11% |
| |||||||
Federal Realty Investment Trust | 104,378 | 13,943,857 | ||||||
| ||||||||
Kimco Realty Corp. | 830,654 | 14,611,204 | ||||||
| ||||||||
Macerich Co. (The) | 286,042 | 12,471,431 | ||||||
|
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 | |||||||
| ||||||||
Retail REITs-(continued) |
| |||||||
Realty Income Corp. | 205,972 | $ | 14,245,024 | |||||
| ||||||||
Regency Centers Corp. | 222,182 | 14,497,375 | ||||||
| ||||||||
Simon Property Group, Inc. | 74,806 | 13,551,855 | ||||||
| ||||||||
83,320,746 | ||||||||
| ||||||||
Semiconductor Equipment-0.68% |
| |||||||
Applied Materials, Inc. | 418,507 | 16,045,558 | ||||||
| ||||||||
KLA-Tencor Corp. | 152,656 | 17,630,241 | ||||||
| ||||||||
Lam Research Corp. | 100,939 | 17,774,349 | ||||||
| ||||||||
51,450,148 | ||||||||
| ||||||||
Semiconductors-2.70% |
| |||||||
Advanced Micro Devices, Inc.(b) | 686,645 | 16,156,757 | ||||||
| ||||||||
Analog Devices, Inc. | 156,574 | 16,747,155 | ||||||
| ||||||||
Broadcom, Inc. | 53,620 | 14,764,803 | ||||||
| ||||||||
Intel Corp. | 285,504 | 15,120,292 | ||||||
| ||||||||
Maxim Integrated Products, Inc. | 258,890 | 14,091,383 | ||||||
| ||||||||
Microchip Technology, Inc. | 190,734 | 16,569,063 | ||||||
| ||||||||
Micron Technology, Inc.(b) | 399,539 | 16,333,154 | ||||||
| ||||||||
NVIDIA Corp. | 93,302 | 14,392,766 | ||||||
| ||||||||
Qorvo, Inc.(b) | 225,780 | 15,836,209 | ||||||
| ||||||||
QUALCOMM, Inc. | 237,143 | 12,661,065 | ||||||
| ||||||||
Skyworks Solutions, Inc. | 198,926 | 16,244,297 | ||||||
| ||||||||
Texas Instruments, Inc. | 144,963 | 15,334,186 | ||||||
| ||||||||
Xilinx, Inc. | 153,842 | 19,276,403 | ||||||
| ||||||||
203,527,533 | ||||||||
| ||||||||
Soft Drinks-0.57% |
| |||||||
Coca-Cola Co. (The) | 276,941 | 12,556,505 | ||||||
| ||||||||
Monster Beverage Corp.(b) | 259,332 | 16,553,162 | ||||||
| ||||||||
PepsiCo, Inc. | 119,913 | 13,866,739 | ||||||
| ||||||||
42,976,406 | ||||||||
| ||||||||
Specialized Consumer Services-0.16% |
| |||||||
H&R Block, Inc. | 506,458 | 12,230,961 | ||||||
| ||||||||
Specialized REITs-1.69% | ||||||||
American Tower Corp., Class A | 82,017 | 14,447,294 | ||||||
| ||||||||
Crown Castle International Corp. | 119,285 | 14,165,094 | ||||||
| ||||||||
Digital Realty Trust, Inc. | 119,525 | 13,520,668 | ||||||
| ||||||||
Equinix, Inc. | 35,317 | 14,956,749 | ||||||
| ||||||||
Extra Space Storage, Inc. | 140,405 | 13,470,456 | ||||||
| ||||||||
Iron Mountain, Inc. | 390,183 | 13,820,282 | ||||||
| ||||||||
Public Storage | 67,155 | 14,202,611 | ||||||
| ||||||||
SBA Communications Corp., Class A(b) | 79,212 | 14,302,519 | ||||||
| ||||||||
Weyerhaeuser Co. | 568,633 | 14,153,275 | ||||||
| ||||||||
127,038,948 | ||||||||
| ||||||||
Specialty Chemicals-1.18% |
| |||||||
Albemarle Corp. | 160,812 | 14,680,527 | ||||||
| ||||||||
Celanese Corp., Series A | 157,622 | 16,123,154 | ||||||
| ||||||||
Ecolab, Inc. | 88,458 | 14,941,441 | ||||||
| ||||||||
International Flavors & Fragrances, Inc. | 100,842 | 12,857,355 | ||||||
| ||||||||
PPG Industries, Inc. | 136,450 | 15,278,307 | ||||||
|
Shares | Value | |||||||
| ||||||||
Specialty Chemicals-(continued) |
| |||||||
Sherwin-Williams Co. (The) | 35,399 | $ | 15,334,847 | |||||
| ||||||||
89,215,631 | ||||||||
| ||||||||
Specialty Stores-0.63% |
| |||||||
Bunge Ltd. | 153,203 | 14,607,906 | ||||||
| ||||||||
Tiffany & Co. | 165,306 | 15,710,682 | ||||||
| ||||||||
Ultra Beauty, Inc.(b) | 55,354 | 17,297,572 | ||||||
| ||||||||
47, 616,160 | ||||||||
| ||||||||
Steel-0.19% |
| |||||||
Nucor Corp. | 242,316 | 14,677,080 | ||||||
| ||||||||
Systems Software-0.99% |
| |||||||
Fortinet, Inc.(b) | 187,412 | 16,265,488 | ||||||
| ||||||||
Microsoft Corp. | 128,870 | 14,437,306 | ||||||
| ||||||||
Oracle Corp. | 293,224 | 15,285,767 | ||||||
| ||||||||
Red Hat, Inc.(b) | 77,417 | 14,136,344 | ||||||
| ||||||||
Symantec Corp. | 633,484 | 14,247,055 | ||||||
| ||||||||
74,371,960 | ||||||||
| ||||||||
Technology Hardware, Storage & Peripherals-1.44% |
| |||||||
Apple Inc. | 82,572 | 14,297,342 | ||||||
| ||||||||
Hewlett Packard Enterprise Co. | 960,918 | 15,739,837 | ||||||
| ||||||||
HP, Inc. | 620,820 | 12,248,779 | ||||||
| ||||||||
NetApp, Inc. | 222,435 | 14,502,762 | ||||||
| ||||||||
Seagate Technology PLC | 354,455 | 16,503,425 | ||||||
| ||||||||
Western Digital Corp. | 352,352 | 17,723,305 | ||||||
| ||||||||
Xerox Corp. | 558,865 | 17,268,928 | ||||||
| ||||||||
108,284,378 | ||||||||
| ||||||||
Tobacco-0.37% |
| |||||||
Altria Group, Inc. | 259,135 | 13,581,265 | ||||||
| ||||||||
Philip Morris International Inc. | 165,627 | 14,399,612 | ||||||
| ||||||||
27,980,877 | ||||||||
| ||||||||
Trading Companies & Distributors-0.64% |
| |||||||
Fastenal Co. | 253,651 | 15,964,794 | ||||||
| ||||||||
United Rentals, Inc.(b) | 129,150 | 17,382,299 | ||||||
| ||||||||
W.W. Grainger, Inc. | 48,043 | 14,642,065 | ||||||
| ||||||||
47,989,158 | ||||||||
| ||||||||
Trucking-0.21% |
| |||||||
JB Hunt Transport Services, Inc. | 147,418 | 15,872,496 | ||||||
| ||||||||
Water Utilities-0.19% |
| |||||||
American Water Works Co., Inc. | 140,665 | 14,294,377 | ||||||
| ||||||||
Total Common Stocks & Other Equity Interests (Cost $5,008,436,786) |
| 7,438,835,409 | ||||||
| ||||||||
Money Market Funds-1.22% |
| |||||||
Invesco Government & Agency Portfolio-Institutional Class, 2.30%(e) | 32,149,078 | 32,149,078 | ||||||
| ||||||||
Invesco Liquid Assets Portfolio- Institutional Class, 2.51%(e) | 22,957,743 | 22,964,630 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 Invesco Equally-Weighted S&P 500 Fund
Shares | Value | |||||||
| ||||||||
Invesco Treasury Portfolio-Institutional Class, 2.29%(e) | 36,741,803 | $ | 36,741,803 | |||||
| ||||||||
Total Money Market Funds |
| 91,855,511 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES-99.91% (Cost $5,100,292,253) |
| 7,530,690,920 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES-0.09% | 6,639,520 | |||||||
| ||||||||
NET ASSETS-100.00% | $ | 7,537,330,440 | ||||||
|
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) | The Fund’s Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. The value of this security as of February 28, 2019 represented less than 1% of the Fund’s Net Assets. 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 1J. |
(e) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the7-day SEC standardized yield as of February 28, 2019. |
Portfolio Composition
By sector, based on Net Assets
as of February 28, 2019
Industrials | 14.27% | |||
| ||||
Information Technology | 14.07 | |||
| ||||
Financials | 13.96 | |||
| ||||
Consumer Discretionary | 12.65 | |||
| ||||
Health Care | 11.84 | |||
| ||||
Consumer Staples | 6.06 | |||
| ||||
Real Estate | 6.06 | |||
| ||||
Energy | 5.56 | |||
| ||||
Utilities | 5.20 | |||
| ||||
Materials | 4.94 | |||
| ||||
Communication Services | 4.08 | |||
| ||||
Money Market Funds, Plus Other Assets Less Liabilities | 1.31 | |||
|
Open Futures Contracts | ||||||||||||||||||
| ||||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation (Depreciation) | |||||||||||||
| ||||||||||||||||||
Equity Risk | ||||||||||||||||||
| ||||||||||||||||||
E-Mini S&P 500 Index | 745 | March-2019 | $103,730,075 | $(90,787) | $(90,787) | |||||||||||||
|
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 28, 2019
(Unaudited)
Assets: | ||||
Investments in securities, at value | $ | 7,423,236,406 | ||
| ||||
Investments in affiliates, at value | 107,454,514 | |||
| ||||
Cash | 795,463 | |||
| ||||
Receivable for: | 233,657 | |||
| ||||
Fund shares sold | 7,066,584 | |||
| ||||
Dividends | 13,718,248 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 202,075 | |||
| ||||
Other assets | 105,396 | |||
| ||||
Total assets | 7,552,812,343 | |||
| ||||
Liabilities: | ||||
Other investments: | ||||
Variation margin payable - futures contracts | 386,969 | |||
| ||||
Payable for: | ||||
Fund shares reacquired | 11,110,417 | |||
| ||||
Accrued fees to affiliates | 2,804,761 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 17,826 | |||
| ||||
Accrued other operating expenses | 917,417 | |||
| ||||
Trustee deferred compensation and retirement plans | 244,513 | |||
| ||||
Total liabilities | 15,481,903 | |||
| ||||
Net assets applicable to shares outstanding | $ | 7,537,330,440 | ||
| ||||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 5,146,205,007 | ||
| ||||
Distributable earnings | 2,391,125,433 | |||
| ||||
$ | 7,537,330,440 | |||
|
Net Assets: | ||||
Class A | $ | 2,246,372,728 | ||
| ||||
Class C | $ | 1,100,474,201 | ||
| ||||
Class R | $ | 136,764,296 | ||
| ||||
Class Y | $ | 2,983,345,167 | ||
| ||||
Class R6 | $ | 1,070,374,048 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 38,190,710 | |||
| ||||
Class C | 19,562,207 | |||
| ||||
Class R | 2,337,280 | |||
| ||||
Class Y | 50,233,883 | |||
| ||||
Class R6 | 18,003,317 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 58.82 | ||
| ||||
Maximum offering price per share | $ | 62.24 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 56.26 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 58.51 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 59.39 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 59.45 | ||
|
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 28, 2019
(Unaudited)
Investment income: | ||||
Dividends | $ | 73,679,040 | ||
| ||||
Dividends from affiliated money market funds (includes securities lending income of $79,168) | 994,108 | |||
| ||||
Total investment income | 74,673,148 | |||
| ||||
Expenses: | ||||
Advisory fees | 3,901,135 | |||
| ||||
Administrative services fees | 402,174 | |||
| ||||
Custodian fees | 37,682 | |||
| ||||
Distribution fees: | ||||
Class A | 2,611,396 | |||
| ||||
Class C | 5,675,016 | |||
| ||||
Class R | 324,927 | |||
| ||||
Transfer agent fees – A, C, R and Y | 3,742,368 | |||
| ||||
Transfer agent fees – R6 | 24,964 | |||
| ||||
Trustees’ and officers‘ fees and benefits | 68,119 | |||
| ||||
Registration and filing fees | 100,473 | |||
| ||||
Licensing fees | 745,339 | |||
| ||||
Reports to shareholders | 201,535 | |||
| ||||
Professional services fees | 60,906 | |||
| ||||
Other | 63,141 | |||
| ||||
Total expenses | 17,959,175 | |||
| ||||
Less: Fees waived and expense offset arrangement(s) | (32,529 | ) | ||
| ||||
Net expenses | 17,926,646 | |||
| ||||
Net investment income | 56,746,502 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
| ||||
Investment securities | 123,098,602 | |||
| ||||
Futures contracts | (6,776,677 | ) | ||
| ||||
116,321,925 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | (369,849,817 | ) | ||
| ||||
Futures contracts | (778,228 | ) | ||
| ||||
(370,628,045 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (254,306,120 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (197,559,618 | ) | |
|
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 28, 2019 and the year ended August 31, 2018
(Unaudited)
February 28, 2019 | August 31, 2018 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 56,746,502 | $ | 101,774,209 | ||||
| ||||||||
Net realized gain | 116,321,925 | 295,114,640 | ||||||
| ||||||||
Change in net unrealized appreciation (depreciation) | (370,628,045 | ) | 808,580,285 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | (197,559,618 | ) | 1,205,469,134 | |||||
| ||||||||
Distributions to shareholders from distributable earnings(1): | ||||||||
Class A | (126,203,759 | ) | (60,472,409 | ) | ||||
| ||||||||
Class B | - | (51,520 | ) | |||||
| ||||||||
Class C | (63,410,742 | ) | (26,444,242 | ) | ||||
| ||||||||
Class R | (7,423,559 | ) | (3,426,997 | ) | ||||
| ||||||||
Class Y | (183,732,668 | ) | (100,099,097 | ) | ||||
| ||||||||
Class R6 | (64,278,995 | ) | (30,682,341 | ) | ||||
| ||||||||
Total distributions to shareholders from distributable earnings | (445,049,723 | ) | (221,176,606 | ) | ||||
| ||||||||
Share transactions-net: | ||||||||
Class A | 127,848,219 | (85,392,367 | ) | |||||
| ||||||||
Class B | - | (3,301,772 | ) | |||||
| ||||||||
Class C | (51,775,992 | ) | (21,468,146 | ) | ||||
| ||||||||
Class R | 10,031,052 | (12,092,846 | ) | |||||
| ||||||||
Class Y | (186,505,258 | ) | (295,793,726 | ) | ||||
| ||||||||
Class R6 | 151,818,944 | 70,474,012 | ||||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | 51,416,965 | (347,574,845 | ) | |||||
| ||||||||
Net increase (decrease) in net assets | (591,192,376 | ) | 636,717,683 | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 8,128,522,816 | 7,491,805,133 | ||||||
| ||||||||
End of period | $ | 7,537,330,440 | $ | 8,128,522,816 | ||||
|
(1) | For the year ended August 31, 2018, distributions to shareholders from distributable earnings consisted of distributions from net investment income and distributions from net realized gains. The Securities and Exchange Commission eliminated the requirement to disclose the distribution components separately. For the year ended August 31, 2018, distributions from net investment income were $29,659,224, $16,753, $9,106,520, $1,527,437, $53,078,211 and $16,786,276 and distributions from net realized gains were $30,813,185, $34,767, $17,337,722, $1,899,560, $47,020,886 and $13,896,065 for Class A, Class B, Class C, Class R, Class Y and Class R6 shares, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 Invesco Equally-Weighted S&P 500 Fund
February 28, 2019
(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 authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is total return through growth of capital and current income.
The Fund currently consists of five different classes of shares: Class A, Class C, Class R, Class Y and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. 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 Class R6 shares are sold at net asset value.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946,Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations- Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
17 Invesco Equally-Weighted S&P 500 Fund
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 (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on theex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
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 net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on theex-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 of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses- Fees provided for under the Rule12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R6 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 theperiod-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 the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Securities Lending- The Fund may lend portfolio securities having a market value up toone-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be |
18 Invesco Equally-Weighted S&P 500 Fund
purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
J. | 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 (“Counterparties”) 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. |
K. | Collateral– To the extent the Fund has designated 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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
| ||||
First $2 billion | 0.12% | |||
| ||||
Over $2 billion | 0.10% | |||
|
For the six months ended February 28, 2019, the effective advisory fees incurred by the Fund was 0.11%.
Under the terms of a mastersub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and a separatesub-advisory agreement with Invesco Capital Management LLC (collectively, the “AffiliatedSub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such AffiliatedSub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such AffiliatedSub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2019, 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 C, Class R, Class Y and Class R6 shares to 2.00%, 2.75%, 2.25%, 1.75% and 1.75%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary ornon-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2019. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limit.
Further, the Adviser has contractually agreed, through at least June 30, 2020, 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 28, 2019, the Adviser waived advisory fees of $25,512.
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 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into asub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and 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 orsub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer agent fees.
19 Invesco Equally-Weighted S&P 500 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 28, 2019, IDI advised the Fund that IDI retained $261,209 infront-end sales commissions from the sale of Class A shares and $9,402 and $44,595 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.
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 28, 2019. 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.
Level 1 | Level 2 | Level 3 | Total | |||||||||
| ||||||||||||
Investments in Securities | ||||||||||||
| ||||||||||||
Common Stocks & Other Equity Interests | $ | 7,438,835,409 | $- | $- | $ | 7,438,835,409 | ||||||
| ||||||||||||
Money Market Funds | 91,855,511 | - | - | 91,855,511 | ||||||||
| ||||||||||||
Total Investments in Securities | 7,530,690,920 | - | - | 7,530,690,920 | ||||||||
| ||||||||||||
Other Investments - Liabilities* | ||||||||||||
| ||||||||||||
Futures Contracts | (90,787 | ) | - | - | (90,787 | ) | ||||||
| ||||||||||||
Total Investments | $ | 7,530,600,133 | $- | $- | $ | 7,530,600,133 | ||||||
|
* | Unrealized appreciation (depreciation). |
NOTE 4–Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions andclose-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
Value of Derivative Investments atPeriod-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of February 28, 2019:
Value | ||||
Derivative Liabilities | Equity Risk | |||
| ||||
Unrealized depreciation on futures contracts - Exchange-Traded(a) | $ | (90,787 | ) | |
| ||||
Derivatives not subject to master netting agreements | 90,787 | |||
| ||||
Total Derivative Liabilities subject to master netting agreements | $ | - | ||
|
(a) | Only current day’s variation margin receivable is reported within the Statement of Assets and Liabilities. |
20 Invesco Equally-Weighted S&P 500 Fund
Effect of Derivative Investments for the six months ended February 28, 2019
The table below summarizes the (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Loss on Statement of Operations | ||||
Equity Risk | ||||
| ||||
Realized (Loss): | ||||
Futures contracts | $(6,776,677) | |||
| ||||
Change in Net Unrealized (Depreciation): | ||||
Futures contracts | (778,228) | |||
| ||||
Total | $(7,554,905) | |||
|
The table below summarizes the average notional value of derivatives held during the period.
Futures Contracts | ||||
| ||||
Average notional value | $ | 56,566,531 | ||
|
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 28, 2019.
Value 08/31/18 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value 02/28/19 | Dividend Income | ||||||||
| ||||||||||||||
Invesco Ltd. | $13,342,569 | $5,544,659 | $(636,999) | $(2,116,441) | $(534,785) | $15,599,003 | $446,639 | |||||||
|
NOTE 6–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $7,017.
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, andTrustees’andOfficers’Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan.Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 8–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any atperiod-end, are shown in the Statement of Assets and Liabilities under the payable captionAmount 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. The Fund may not purchase additional securities when any borrowings from banks exceed 5% of the Fund’s total assets.
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 GAAP. 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 fiscalyear-end.
Capital loss carry forward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date
21 Invesco Equally-Weighted S&P 500 Fund
will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of August 31, 2018.
NOTE 10–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Trust during the six months ended February 28, 2019 was $924,194,908 and $1,228,836,591, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reportingperiod-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
| ||||
Aggregate unrealized appreciation of investments | $ | 2,521,109,226 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (179,679,305 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 2,341,429,921 | ||
|
Cost of investments for tax purposes is $5,189,170,212.
NOTE 11–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended February 28, 2019(a) | Year ended August 31, 2018 | |||||||||||||||
|
|
|
| |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 5,178,614 | $ | 297,607,503 | 5,770,756 | $ | 348,451,748 | ||||||||||
| ||||||||||||||||
Class B(b) | – | – | 680 | 39,286 | ||||||||||||
| ||||||||||||||||
Class C | 1,848,016 | 101,395,257 | 3,167,491 | 183,252,922 | ||||||||||||
| ||||||||||||||||
Class R | 443,018 | 25,559,665 | 691,345 | 41,539,901 | ||||||||||||
| ||||||||||||||||
Class Y | 7,273,228 | 422,365,342 | 13,675,120 | 832,580,158 | ||||||||||||
| ||||||||||||||||
Class R6 | 2,874,829 | 174,375,434 | 5,330,475 | 319,399,367 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 2,146,785 | 115,604,240 | 935,175 | 55,568,115 | ||||||||||||
| ||||||||||||||||
Class B(b) | – | – | 826 | 48,839 | ||||||||||||
| ||||||||||||||||
Class C | 1,121,642 | 57,866,941 | 424,100 | 24,199,130 | ||||||||||||
| ||||||||||||||||
Class R | 138,220 | 7,408,583 | 57,829 | 3,421,169 | ||||||||||||
| ||||||||||||||||
Class Y | 2,749,406 | 149,436,193 | 1,357,075 | 81,343,086 | ||||||||||||
| ||||||||||||||||
Class R6 | 1,163,347 | 63,274,464 | 505,764 | 30,345,827 | ||||||||||||
| ||||||||||||||||
Conversion of Class B shares to Class A shares:(c) | ||||||||||||||||
Class A | – | – | 41,105 | 2,597,848 | ||||||||||||
| ||||||||||||||||
Class B | – | – | (41,102 | ) | (2,597,848 | ) | ||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (4,954,382 | ) | (285,363,524 | ) | (8,160,022 | ) | (492,010,078 | ) | ||||||||
| ||||||||||||||||
Class B(b) | – | – | (13,501 | ) | (792,049 | ) | ||||||||||
| ||||||||||||||||
Class C | (3,874,696 | ) | (211,038,190 | ) | (3,964,268 | ) | (228,920,198 | ) | ||||||||
| ||||||||||||||||
Class R | (397,372 | ) | (22,937,196 | ) | (952,042 | ) | (57,053,916 | ) | ||||||||
| ||||||||||||||||
Class Y | (13,019,421 | ) | (758,306,793 | ) | (19,961,043 | ) | (1,209,716,970 | ) | ||||||||
| ||||||||||||||||
Class R6 | (1,469,679 | ) | (85,830,954 | ) | (4,551,974 | ) | (279,271,182 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | 1,221,555 | $ | 51,416,965 | (5,686,211 | ) | $ | (347,574,845 | ) | ||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 46% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
(b) | Class B shares activity for the period September 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
22 Invesco Equally-Weighted S&P 500 Fund
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income to average net assets | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $ | 64.04 | $ | 0.44 | $ | (2.09 | ) | $ | (1.65 | ) | $ | (0.82 | ) | $ | (2.75 | ) | $ | (3.57 | ) | $ | 58.82 | (2.07 | )% | $ | 2,246,373 | 0.51 | %(d) | 0.51 | %(d) | 1.51 | %(d) | 12 | % | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 56.49 | 0.75 | 8.45 | 9.20 | (0.81 | ) | (0.84 | ) | (1.65 | ) | 64.04 | 16.52 | 2,293,892 | 0.53 | 0.53 | 1.23 | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 50.91 | 0.74 | 5.54 | 6.28 | (0.54 | ) | (0.16 | ) | (0.70 | ) | 56.49 | 12.41 | 2,103,146 | 0.53 | 0.53 | 1.37 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 46.87 | 0.75 | 4.57 | 5.32 | (0.66 | ) | (0.62 | ) | (1.28 | ) | 50.91 | 11.69 | 1,957,456 | 0.54 | 0.54 | 1.58 | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 48.54 | 0.67 | (1.18 | ) | (0.51 | ) | (0.49 | ) | (0.67 | ) | (1.16 | ) | 46.87 | (1.07 | ) | 1,789,491 | 0.54 | 0.54 | 1.36 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 40.07 | 0.59 | 9.45 | 10.04 | (0.48 | ) | (1.09 | ) | (1.57 | ) | 48.54 | 25.64 | 1,506,665 | 0.56 | 0.56 | 1.31 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 61.18 | 0.21 | (1.98 | ) | (1.77 | ) | (0.40 | ) | (2.75 | ) | (3.15 | ) | 56.26 | (2.43 | ) | 1,100,474 | 1.27 | (d) | 1.27 | (d) | 0.75 | (d) | 12 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 54.05 | 0.32 | 8.09 | 8.41 | (0.44 | ) | (0.84 | ) | (1.28 | ) | 61.18 | 15.75 | (e) | 1,252,161 | 1.21 | (e) | 1.21 | (e) | 0.55 | (e) | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 48.82 | 0.32 | 5.30 | 5.62 | (0.23 | ) | (0.16 | ) | (0.39 | ) | 54.05 | 11.56 | 1,126,361 | 1.28 | 1.28 | 0.62 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 45.03 | 0.41 | 4.39 | 4.80 | (0.39 | ) | (0.62 | ) | (1.01 | ) | 48.82 | 10.90 | (e) | 941,775 | 1.23 | (e) | 1.23 | (e) | 0.89 | (e) | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 46.79 | 0.29 | (1.12 | ) | (0.83 | ) | (0.26 | ) | (0.67 | ) | (0.93 | ) | 45.03 | (1.81 | ) | 750,898 | 1.29 | 1.29 | 0.61 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 38.75 | 0.25 | 9.14 | 9.39 | (0.26 | ) | (1.09 | ) | (1.35 | ) | 46.79 | 24.73 | 349,739 | 1.31 | 1.31 | 0.56 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 63.64 | 0.36 | (2.07 | ) | (1.71 | ) | (0.67 | ) | (2.75 | ) | (3.42 | ) | 58.51 | (2.20 | ) | 136,764 | 0.77 | (d) | 0.77 | (d) | 1.25 | (d) | 12 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 56.15 | 0.59 | 8.42 | 9.01 | (0.68 | ) | (0.84 | ) | (1.52 | ) | 63.64 | 16.25 | 137,036 | 0.78 | 0.78 | 0.98 | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 50.63 | 0.60 | 5.50 | 6.10 | (0.42 | ) | (0.16 | ) | (0.58 | ) | 56.15 | 12.13 | 132,316 | 0.78 | 0.78 | 1.12 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 46.65 | 0.63 | 4.54 | 5.17 | (0.57 | ) | (0.62 | ) | (1.19 | ) | 50.63 | 11.38 | 111,116 | 0.79 | 0.79 | 1.33 | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 48.36 | 0.54 | (1.17 | ) | (0.63 | ) | (0.41 | ) | (0.67 | ) | (1.08 | ) | 46.65 | (1.33 | ) | 89,588 | 0.79 | 0.79 | 1.11 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 39.95 | 0.48 | 9.43 | 9.91 | (0.41 | ) | (1.09 | ) | (1.50 | ) | 48.36 | 25.35 | 65,777 | 0.81 | 0.81 | 1.06 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 64.71 | 0.52 | (2.12 | ) | (1.60 | ) | (0.97 | ) | (2.75 | ) | (3.72 | ) | 59.39 | (1.94 | ) | 2,983,345 | 0.27 | (d) | 0.27 | (d) | 1.75 | (d) | 12 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 57.06 | 0.91 | 8.53 | 9.44 | (0.95 | ) | (0.84 | ) | (1.79 | ) | 64.71 | 16.80 | 3,444,820 | 0.28 | 0.28 | 1.48 | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 51.40 | 0.88 | 5.59 | 6.47 | (0.65 | ) | (0.16 | ) | (0.81 | ) | 57.06 | 12.69 | 3,318,343 | 0.28 | 0.28 | 1.62 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 47.30 | 0.88 | 4.61 | 5.49 | (0.77 | ) | (0.62 | ) | (1.39 | ) | 51.40 | 11.97 | 2,116,654 | 0.29 | 0.29 | 1.83 | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 48.95 | 0.80 | (1.19 | ) | (0.39 | ) | (0.59 | ) | (0.67 | ) | (1.26 | ) | 47.30 | (0.83 | ) | 1,945,879 | 0.29 | 0.29 | 1.61 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 40.38 | 0.71 | 9.52 | 10.23 | (0.57 | ) | (1.09 | ) | (1.66 | ) | 48.95 | 25.95 | 1,021,247 | 0.31 | 0.31 | 1.56 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 64.83 | 0.55 | (2.13 | ) | (1.58 | ) | (1.05 | ) | (2.75 | ) | (3.80 | ) | 59.45 | (1.91 | ) | 1,070,374 | 0.16 | (d) | 0.16 | (d) | 1.86 | (d) | 12 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 57.15 | 0.98 | 8.56 | 9.54 | (1.02 | ) | (0.84 | ) | (1.86 | ) | 64.83 | 16.96 | 1,000,614 | 0.16 | 0.16 | 1.60 | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 51.47 | 0.95 | 5.60 | 6.55 | (0.71 | ) | (0.16 | ) | (0.87 | ) | 57.15 | 12.84 | 808,668 | 0.16 | 0.16 | 1.74 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 47.37 | 0.97 | 4.58 | 5.55 | (0.83 | ) | (0.62 | ) | (1.45 | ) | 51.47 | 12.08 | 681,025 | 0.16 | 0.16 | 1.96 | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 48.99 | 0.87 | (1.20 | ) | (0.33 | ) | (0.62 | ) | (0.67 | ) | (1.29 | ) | 47.37 | (0.70 | ) | 178,731 | 0.16 | 0.16 | 1.74 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 40.39 | 0.78 | 9.49 | 10.27 | (0.58 | ) | (1.09 | ) | (1.67 | ) | 48.99 | 26.05 | 1,253 | 0.22 | 0.22 | 1.65 | 17 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $2,140,468, $1,144,561, $131,048, $3,033,372 and $1,017,482 for Class A, Class C, Class R, Class Y and Class R6 shares, respectively. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual12b-1 fees of 0.93% and 0.94% for the years ended August 31, 2018 and 2016, respectively. |
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, 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, 2018 through February 28, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Beginning Account Value | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized | |||||||||||||||||||||
Ending Account Value (02/28/19)1 | Expenses Paid During Period 2 | Ending Account Value | Expenses Paid During Period 2 | |||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 979.30 | $ | 2.50 | $ | 1,022.27 | $ | 2.56 | 0.51% | |||||||||||||
Class C | 1,000.00 | 975.70 | 6.22 | 1,018.50 | 6.36 | 1.27 | ||||||||||||||||||
Class R | 1,000.00 | 978.00 | 3.78 | 1,020.98 | 3.86 | 0.77 | ||||||||||||||||||
Class Y | 1,000.00 | 980.60 | 1.33 | 1,023.46 | 1.35 | 0.27 | ||||||||||||||||||
Class R6 | 1,000.00 | 980.90 | 0.79 | 1,024.00 | 0.80 | 0.16 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2018 through February 28, 2019, 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 181/365 to reflect the most recent fiscal half year. |
24 Invesco Equally-Weighted S&P 500 Fund
Explore High-Conviction Investing with Invesco
Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
∎ Fund reports and prospectuses
∎ Quarterly statements
∎ Daily confirmations
∎ Tax forms
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on FormN-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s FormsN-Q (or any successor Form) on the SEC website at sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov. | ![]() | |
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd. |
SEC file numbers:811-09913 and333-36074 | Invesco Distributors, Inc. | MS-EWSP-SAR-1 | 04222019 | 0759 |
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![]() |
Semiannual Report to Shareholders
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February 28, 2019
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Invesco Equity and Income Fund
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Nasdaq: A: ACEIX∎ C: ACERX∎ R: ACESX∎ Y: ACETX∎ R5: ACEKX∎ R6: IEIFX |
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2 | Fund Performance
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4 | Letters to Shareholders
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5 | Schedule of Investments
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18 | Financial Statements
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21 | Notes to Financial Statements
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28 | Financial Highlights
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30 | Fund Expenses
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800 959 4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most currentmonth-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
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Performance summary
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Fund vs. Indexes |
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Cumulative total returns, 8/31/18 to 2/28/19, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) orfront-end sales charges, which would have reduced performance. |
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Class A Shares | -3.08% | |||
Class C Shares | -3.44 | |||
Class R Shares | -3.28 | |||
Class Y Shares | -3.04 | |||
Class R5 Shares | -3.02 | |||
Class R6 Shares | -2.88 | |||
Russell 1000 Value Indexq (Broad Market Index) | -1.62 | |||
Bloomberg Barclays U.S. Government/Credit Index∎ (Style-Specific Index) | 1.90 | |||
Lipper Mixed-Asset Target Allocation Growth Funds Index¨ (Peer Group Index) | -1.98 | |||
Source(s):qRIMES Technologies Corp.;∎FactSet Research Systems Inc.;¨Lipper Inc.
TheRussell 1000®Value Index is an unmanaged index considered representative oflarge-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. TheBloomberg Barclays U.S. Government/Credit Index is a broad-based benchmark that includes investment grade, US dollar-denominated, fixed-rate Treasuries, government-related and corporate securities. TheLipper Mixed-Asset Target Allocation Growth Funds Index is an unmanaged index considered representative of mixed-asset target allocation growth funds tracked by Lipper. The Fund is not managed to track the performance of any particular index, including the indexes described 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.
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For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
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2 | Invesco Equity and Income Fund |
Average Annual Total Returns |
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As of 2/28/19, including maximum applicable sales charges |
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Class A Shares |
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Inception (8/3/60) | 9.93 | % | ||
10 Years | 10.83 | |||
5 Years | 4.54 | |||
1 Year | -6.75 | |||
Class C Shares* | ||||
Inception (7/6/93) | 8.79 | % | ||
10 Years | 10.64 | |||
5 Years | 4.94 | |||
1 Year | -2.92 | |||
Class R Shares | ||||
Inception (10/1/02) | 7.60 | % | ||
10 Years | 11.17 | |||
5 Years | 5.44 | |||
1 Year | -1.64 | |||
Class Y Shares | ||||
Inception (12/22/04) | 6.80 | % | ||
10 Years | 11.73 | |||
5 Years | 5.97 | |||
1 Year | -1.06 | |||
Class R5 Shares | ||||
10 Years | 11.78 | % | ||
5 Years | 6.04 | |||
1 Year | -1.01 | |||
Class R6 Shares | ||||
10 Years | 11.75 | % | ||
5 Years | 6.15 | |||
1 Year | -0.91 | |||
* Effective January 26, 2019, Class C share performance includes the conversion to A shares after 10 years. |
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Effective June 1, 2010, Class A, 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 C, Class Y and Class R shares, respectively, of Invesco Van Kampen Equity and Income Fund (renamed Invesco Equity and Income Fund). Returns shown above, prior to June 1, 2010, for Class A, Class C, Class R and Class Y shares are blended returns of the predecessor fund and Invesco Equity and Income Fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R5 shares incepted on June 1, 2010. Performance shown prior to that date is that of the predecessor fund’s Class A shares and includes the12b-1 fees applicable to Class A shares.
Average Annual Total Returns |
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As of 12/31/18, the most recent calendar quarter end, including maximum applicable sales charges |
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Class A Shares |
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Inception (8/3/60) | 9.79 | % | ||
10 Years | 8.39 | |||
5 Years | 2.98 | |||
1 Year | -14.64 | |||
Class C Shares | ||||
Inception (7/6/93) | 7.98 | % | ||
10 Years | 8.22 | |||
5 Years | 3.39 | |||
1 Year | -11.08 | |||
Class R Shares | ||||
Inception (10/1/02) | 7.09 | % | ||
10 Years | 8.74 | |||
5 Years | 3.90 | |||
1 Year | -9.82 | |||
Class Y Shares | ||||
Inception (12/22/04) | 6.20 | % | ||
10 Years | 9.29 | |||
5 Years | 4.41 | |||
1 Year | -9.42 | |||
Class R5 Shares | ||||
10 Years | 9.32 | % | ||
5 Years | 4.48 | |||
1 Year | -9.38 | |||
Class R6 Shares | ||||
10 Years | 9.29 | % | ||
5 Years | 4.58 | |||
1 Year | -9.29 |
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recentmonth-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 C, Class R, Class Y, Class R5 and Class R6 shares was 0.78%, 1.52%, 1.03%, 0.53%, 0.48% and 0.39%, 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 C, Class R, Class Y, Class R5 and Class R6 shares was 0.79%, 1.53%, 1.04%, 0.54%, 0.49% 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 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, Class R5 and Class R6 shares do not have afront-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2020. See current prospectus for more information. |
3 | Invesco Equity and Income Fund |
Letters to Shareholders
Bruce Crockett | Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time; monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory andsub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper, Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. |
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward. Our website,invesco.com/us, offers a wide range of market insights and investment perspectives. | |
On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246. All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
4 | Invesco Equity and Income Fund |
Schedule of Investments(a)
February 28, 2019
(Unaudited)
Shares | Value | |||||||
Common Stocks & Other Equity Interests-63.26% |
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Aerospace & Defense-1.26% |
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General Dynamics Corp. | 1,003,030 | $ | 170,735,767 | |||||
Apparel, Accessories & Luxury Goods-0.67% |
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Capri Holdings Ltd.(b) | 1,986,838 | 90,599,813 | ||||||
Asset Management & Custody Banks-1.02% |
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Northern Trust Corp. | 245,509 | 22,881,439 | ||||||
State Street Corp. | 1,606,365 | 115,449,452 | ||||||
138,330,891 | ||||||||
Automobile Manufacturers-1.73% |
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General Motors Co. | 5,941,555 | 234,572,591 | ||||||
Biotechnology-0.61% | ||||||||
Celgene Corp.(b) | 995,818 | 82,772,392 | ||||||
Broadcasting-0.49% | ||||||||
CBS Corp., Class B | 1,319,214 | 66,237,735 | ||||||
Building Products-1.12% | ||||||||
Johnson Controls International PLC | 4,302,154 | 151,736,972 | ||||||
Cable & Satellite-1.99% | ||||||||
Charter Communications, Inc., Class A(b) | 503,657 | 173,716,336 | ||||||
Comcast Corp., Class A | 2,481,234 | 95,949,319 | ||||||
269,665,655 | ||||||||
Communications Equipment-1.70% |
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Cisco Systems, Inc. | 4,018,489 | 208,037,176 | ||||||
Juniper Networks, Inc. | 802,406 | 21,729,154 | ||||||
229,766,330 | ||||||||
Diversified Banks-9.02% | ||||||||
Bank of America Corp. | 12,648,243 | 367,810,906 | ||||||
Citigroup Inc. | 6,600,116 | 422,275,422 | ||||||
JPMorgan Chase & Co. | 2,416,977 | 252,235,720 | ||||||
Wells Fargo & Co. | 3,584,445 | 178,827,961 | ||||||
1,221,150,009 | ||||||||
Diversified Chemicals-0.81% | ||||||||
DowDuPont, Inc. | 2,051,881 | 109,221,626 | ||||||
Electric Utilities-0.73% | ||||||||
Duke Energy Corp. | 580,922 | 52,085,467 | ||||||
FirstEnergy Corp. | 1,152,463 | 46,962,867 | ||||||
99,048,334 | ||||||||
Fertilizers & Agricultural Chemicals-1.06% |
| |||||||
Mosaic Co. (The) | 2,529,488 | 79,097,090 | ||||||
Nutrien Ltd. (Canada) | 1,187,039 | 64,622,403 | ||||||
143,719,493 |
Shares | Value | |||||||
Food Distributors-0.85% | ||||||||
US Foods Holding Corp.(b) | 3,244,297 | $ | 114,329,026 | |||||
Health Care Distributors-0.90% |
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McKesson Corp. | 954,885 | 121,423,177 | ||||||
Health Care Equipment-1.60% |
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Medtronic PLC | 974,494 | 88,191,707 | ||||||
Zimmer Biomet Holdings, Inc. | 1,036,315 | 128,627,418 | ||||||
216,819,125 | ||||||||
Health Care Services-1.02% |
| |||||||
CVS Health Corp. | 2,379,996 | 137,635,169 | ||||||
Home Improvement Retail-0.67% |
| |||||||
Kingfisher PLC (United Kingdom) | 28,194,307 | 90,534,528 | ||||||
Hotels, Resorts & Cruise Lines-1.46% |
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Carnival Corp. | 3,409,809 | 196,950,568 | ||||||
Industrial Machinery-0.89% | ||||||||
Ingersoll-Rand PLC | 1,141,981 | 120,547,514 | ||||||
Insurance Brokers-1.29% | ||||||||
Aon PLC | 230,216 | 39,488,950 | ||||||
Willis Towers Watson PLC | 782,880 | 134,671,018 | ||||||
174,159,968 | ||||||||
Integrated Oil & Gas-3.63% | ||||||||
BP PLC (United Kingdom) | 22,161,425 | 157,080,459 | ||||||
Occidental Petroleum Corp. | 2,299,587 | 152,117,680 | ||||||
Royal Dutch Shell PLC, Class A (United Kingdom) | 5,835,572 | 181,851,510 | ||||||
491,049,649 | ||||||||
Internet & Direct Marketing Retail-0.82% |
| |||||||
eBay, Inc. | 2,991,852 | 111,147,302 | ||||||
Investment Banking & Brokerage-2.55% |
| |||||||
Goldman Sachs Group, Inc. (The) | 679,413 | 133,640,537 | ||||||
Morgan Stanley | 5,027,934 | 211,072,669 | ||||||
344,713,206 | ||||||||
IT Consulting & Other Services-0.80% |
| |||||||
Cognizant Technology Solutions Corp., Class A | 1,516,218 | 107,621,154 | ||||||
Managed Health Care-0.73% | ||||||||
Anthem, Inc. | 328,839 | 98,891,752 | ||||||
Multi-line Insurance-1.68% | ||||||||
American International Group, Inc. | 5,270,170 | 227,671,344 | ||||||
Oil & Gas Equipment & Services-1.31% |
| |||||||
Schlumberger Ltd. | 1,520,421 | 66,989,749 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Equity and Income Fund |
Shares |
Value | |||||||
Oil & Gas Equipment & Services-(continued) |
| |||||||
TechnipFMC PLC | 4,936,357 | $ | 110,031,398 | |||||
177,021,147 | ||||||||
Oil & Gas Exploration & Production-3.36% |
| |||||||
Anadarko Petroleum Corp. | 2,375,355 | 103,327,942 | ||||||
Canadian Natural Resources Ltd. (Canada) | 2,966,830 | 84,273,799 | ||||||
Devon Energy Corp. | 5,303,818 | 156,515,669 | ||||||
Marathon Oil Corp. | 6,648,120 | 110,358,792 | ||||||
454,476,202 | ||||||||
Other Diversified Financial Services-1.11% |
| |||||||
AXA Equitable Holdings, Inc. | 3,011,478 | 57,579,459 | ||||||
Voya Financial, Inc. | 1,832,299 | 92,659,361 | ||||||
150,238,820 | ||||||||
Packaged Foods & Meats-1.46% |
| |||||||
Mondelez International, Inc., Class A | 4,187,170 | 197,466,937 | ||||||
Pharmaceuticals-5.41% | ||||||||
Bristol-Myers Squibb Co. | 2,084,970 | 107,709,550 | ||||||
Johnson & Johnson | 2,032,802 | 277,762,065 | ||||||
Merck & Co., Inc. | 1,325,444 | 107,745,343 | ||||||
Novartis AG (Switzerland) | 1,557,447 | 142,067,006 | ||||||
Sanofi (France) | 1,157,691 | 96,785,896 | ||||||
732,069,860 | ||||||||
Railroads-0.85% | ||||||||
CSX Corp. | 1,590,437 | 115,577,057 | ||||||
Regional Banks-2.96% | ||||||||
Citizens Financial Group, Inc. | 5,333,514 | 197,020,007 | ||||||
Fifth Third Bancorp | 2,001,224 | 55,193,758 | ||||||
First Horizon National Corp. | 3,485,894 | 54,484,523 | ||||||
PNC Financial Services Group, Inc. (The) | 742,285 | 93,542,756 | ||||||
400,241,044 | ||||||||
Semiconductors-1.95% |
| |||||||
Intel Corp. | 3,698,008 | 195,846,504 | ||||||
QUALCOMM, Inc. | 1,275,918 | 68,121,262 | ||||||
263,967,766 | ||||||||
Systems Software-1.47% |
| |||||||
Oracle Corp. | 3,806,469 | 198,431,229 | ||||||
Technology Hardware, Storage & Peripherals-0.73% |
| |||||||
Apple Inc. | 573,528 | 99,306,373 | ||||||
Tobacco-1.55% | ||||||||
Philip Morris International Inc. | 2,418,848 | 210,294,645 | ||||||
Total Common Stocks & Other Equity Interests |
| 8,560,142,170 |
Principal Amount | Value | |||||||
U.S. Dollar Denominated Bonds & Notes-18.83% |
| |||||||
Aerospace & Defense-0.08% |
| |||||||
BAE Systems Holdings Inc. (United Kingdom), Sr. Unsec. Gtd. Notes, 2.85%, 12/15/2020(c) | $ | 3,091,000 | $ | 3,066,152 | ||||
Precision Castparts Corp., Sr. Unsec. Global Notes, 2.50%, 01/15/2023 | 4,150,000 | 4,094,958 | ||||||
United Technologies Corp., Sr. unsec. Global Notes, 4.45%, 11/16/2038 | 3,239,000 | 3,224,202 | ||||||
10,385,312 | ||||||||
Agricultural & Farm Machinery-0.11% |
| |||||||
Deere & Co., Sr. Unsec. Notes, 2.60%, 06/08/2022 | 14,645,000 | 14,582,195 | ||||||
Agricultural Products-0.03% |
| |||||||
Ingredion Inc., Sr. Unsec. Notes, 6.63%, 04/15/2037 | 3,940,000 | 4,740,518 | ||||||
Air Freight & Logistics-0.12% |
| |||||||
FedEx Corp., | 4,310,000 | 4,537,098 | ||||||
Sr. Unsec. Gtd. Notes, 5.10%, 01/15/2044 | 8,875,000 | 8,972,528 | ||||||
United Parcel Service, Inc., Sr. Unsec. Notes, 3.40%, 11/15/2046 | 2,608,000 | 2,276,515 | ||||||
15,786,141 | ||||||||
Airlines-0.16% | ||||||||
American Airlines Pass Through Trust, Series2014-1, Class A, Sr. Sec. First Lien Pass Through Ctfs., 3.70%, 04/01/2028 | 3,515,412 | 3,466,021 | ||||||
Continental Airlines Pass Through Trust, Series2010-1, Class A, Sr. Sec. First Lien Pass Through Ctfs., 4.75%, 01/12/2021 | 2,131,391 | 2,170,221 | ||||||
Series2012-1, Class A, Sr. Sec. First Lien Pass Through Ctfs., 4.15%, 04/11/2024 | 4,193,458 | 4,240,006 | ||||||
United Airlines Pass Through Trust, Series2014-2, Class A, Sr. Sec. First Lien Pass Through Ctfs., 3.75%, 09/03/2026 | 4,524,053 | 4,484,693 | ||||||
Series2018-1, Class AA, Sr. Sec. First Lien Pass Through Ctfs., 3.50%, 03/01/2030 | 5,286,000 | 5,153,850 | ||||||
Virgin Australia Pass Through Trust (Australia), Series2013-1, Class A, Sec. Gtd. First Lien Pass Through Ctfs., 5.00%, 10/23/2023(c) | 1,561,283 | 1,588,918 | ||||||
21,103,709 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Equity and Income Fund |
Principal Amount | Value | |||||||
Application Software-0.88% |
| |||||||
Citrix Systems, Inc., Sr. Unsec. Conv. Notes, 0.50%, 04/15/2019 | $ | 21,913,000 | $ | 32,116,613 | ||||
Nuance Communications, Inc., Sr. Unsec. Conv. Bonds, 1.00%, 12/15/2035(d) | 29,489,000 | 27,561,540 | ||||||
Sr. Unsec. Conv. Global Bonds, 1.25%, 04/01/2025 | 16,761,000 | 16,665,999 | ||||||
RealPage, Inc., Sr. Unsec. Conv. Bonds, 1.50%, 11/15/2022 | 6,658,000 | 10,343,423 | ||||||
Workday, Inc., Sr. Unsec. Conv. Notes, 0.25%, 10/01/2022 | 22,666,000 | 32,732,786 | ||||||
119,420,361 | ||||||||
Asset Management & Custody Banks-0.12% |
| |||||||
Apollo Management Holdings L.P., Sr. Unsec. Gtd. Notes, 4.00%, 05/30/2024(c) | 4,260,000 | 4,218,837 | ||||||
Blackstone Holdings Finance Co. LLC, Sr. Unsec. Gtd. Notes, 5.00%, 06/15/2044(c) | 3,975,000 | 3,997,930 | ||||||
Brookfield Asset Management Inc. (Canada), Sr. Unsec. Notes, 4.00%, 01/15/2025 | 4,515,000 | 4,469,380 | ||||||
Carlyle Holdings Finance LLC, Sr. Unsec. Gtd. Notes, 3.88%, 02/01/2023(c) | 1,033,000 | 1,033,861 | ||||||
KKR Group Finance Co. III LLC, Sr. Unsec. Gtd. Bonds, 5.13%, 06/01/2044(c) | 3,217,000 | 3,174,731 | ||||||
16,894,739 | ||||||||
Automobile Manufacturers-0.17% |
| |||||||
Ford Motor Credit Co. LLC, Sr. Unsec. Global Notes, 3.10%, 05/04/2023 | 2,847,000 | 2,620,105 | ||||||
3.81%, 01/09/2024 | 4,473,000 | 4,170,287 | ||||||
4.13%, 08/04/2025 | 7,006,000 | 6,406,432 | ||||||
General Motors Co., Sr. Unsec. Global Notes, 6.60%, 04/01/2036 | 4,317,000 | 4,463,548 | ||||||
General Motors Financial Co., Inc., Sr. Unsec. Gtd. Global Notes, 5.25%, 03/01/2026 | 5,467,000 | 5,547,624 | ||||||
23,207,996 | ||||||||
Automotive Retail-0.05% |
| |||||||
Advance Auto Parts, Inc., Sr. Unsec. Gtd. Notes, 4.50%, 12/01/2023 | 6,415,000 | 6,588,350 | ||||||
Biotechnology-0.72% |
| |||||||
AbbVie Inc., Sr. Unsec. Global Notes, 4.50%, 05/14/2035 | 7,233,000 | 6,798,256 | ||||||
BioMarin Pharmaceutical Inc., Sr. Unsec. Sub. Conv. Notes, 1.50%, 10/15/2020 | 23,901,000 | 27,874,541 |
Principal Amount | Value | |||||||
Biotechnology-(continued) |
| |||||||
Celgene Corp., | $ | 4,735,000 | $ | 4,823,477 | ||||
4.63%, 05/15/2044 | 13,875,000 | 13,005,745 | ||||||
Gilead Sciences, Inc., Sr. Unsec. Global Notes, 2.55%, 09/01/2020 | 17,923,000 | 17,863,074 | ||||||
4.40%, 12/01/2021 | 4,988,000 | 5,147,717 | ||||||
Neurocrine Biosciences, Inc., Sr. Unsec. Conv. Notes, 2.25%, 05/15/2024 | 17,930,000 | 22,278,025 | ||||||
97,790,835 | ||||||||
Brewers-0.29% | ||||||||
Anheuser-Busch Cos LLC/ Anheuser-Busch InBev Worldwide Inc. (Belgium), Sr. Unsec. Gtd. Notes, 4.70%, 02/01/2036(c) | 10,870,000 | 10,537,403 | ||||||
Anheuser-Busch InBev Finance, Inc. (Belgium), Sr. Unsec. Gtd. Notes, 4.90%, 02/01/2046(c) | 12,141,000 | 11,707,339 | ||||||
Heineken N.V. (Netherlands), Sr. Unsec. Notes, 3.50%, | 9,734,000 | 9,479,559 | ||||||
Molson Coors Brewing Co., Sr. Unsec. Gtd. Global Notes, 1.45%, 07/15/2019 | 3,501,000 | 3,483,041 | ||||||
4.20%, 07/15/2046 | 4,057,000 | 3,451,108 | ||||||
38,658,450 | ||||||||
Broadcasting-0.68% |
| |||||||
Fox Corp., Sr. Unsec. Sub. Gtd. Notes, 5.48%, 01/25/2039(c) | 7,885,000 | 8,290,502 | ||||||
Liberty Media Corp., Liberty Formula One, Sr. Unsec. Conv. Bonds, 1.00%, 01/30/2023 | 5,397,000 | 5,679,716 | ||||||
Sr. Unsec. Conv. Deb., 2.25%, 09/30/2046(d) | 14,987,000 | 7,751,816 | ||||||
Sr. Unsec. Conv. Notes, 1.38%, 10/15/2023 | 61,171,000 | 70,601,060 | ||||||
92,323,094 | ||||||||
Cable & Satellite-0.81% |
| |||||||
Charter Communications Operating, LLC/Charter Communications Operating Capital Corp., Sr. Sec. Gtd. First Lien Global Notes, 4.46%, 07/23/2022 | 10,845,000 | 11,132,360 | ||||||
Comcast Corp., Sr. Unsec. Gtd. Global Notes, 4.15%, 10/15/2028 | 9,915,000 | 10,222,059 | ||||||
3.90%, 03/01/2038 | 8,010,000 | 7,592,131 | ||||||
4.60%, 10/15/2038 | 4,030,000 | 4,151,905 | ||||||
Sr. Unsec. Gtd. Notes, 6.45%, 03/15/2037 | 2,465,000 | 3,038,843 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Equity and Income Fund |
Principal Amount | Value | |||||||
Cable & Satellite-(continued) |
| |||||||
DISH Network Corp., Sr. Unsec. Conv. Bonds, 3.38%, 08/15/2026 | $ | 47,161,000 | $ | 40,624,485 | ||||
GCI Liberty, Inc., Sr. Unsec. Conv. Deb., 1.75%, 09/30/2046(c)(d) | 22,928,000 | 25,162,792 | ||||||
NBCUniversal Media LLC, Sr. Unsec. Gtd. Global Notes, 5.15%, 04/30/2020 | 3,320,000 | 3,406,715 | ||||||
5.95%, 04/01/2041 | 3,365,000 | 3,980,939 | ||||||
109,312,229 | ||||||||
Commodity Chemicals-0.06% |
| |||||||
Basell Finance Co. B.V. (Netherlands), Sr. Unsec. Gtd. Deb., 8.10%, 03/15/2027(c) | 7,384,000 | 8,859,800 | ||||||
Communications Equipment-0.36% |
| |||||||
Finisar Corp., Sr. Unsec. Conv. Bonds, 0.50%, 12/15/2036(d) | 10,562,000 | 10,335,868 | ||||||
Viavi Solutions Inc., Sr. Unsec. Conv. Notes, 1.75%, 06/01/2023(c) | 14,372,000 | 16,513,428 | ||||||
1.00%, 03/01/2024 | 19,034,000 | 22,191,721 | ||||||
49,041,017 | ||||||||
Consumer Finance-0.14% |
| |||||||
American Express Co., Unsec. Sub. Global Notes, 3.63%, 12/05/2024 | 3,423,000 | 3,463,527 | ||||||
Capital One Financial Corp., Sr. Unsec. Global Notes, 3.20%, 01/30/2023 | 10,060,000 | 9,916,100 | ||||||
Synchrony Financial, Sr. Unsec. Global Notes, 3.95%, 12/01/2027 | 5,795,000 | 5,312,634 | ||||||
18,692,261 | ||||||||
Data Processing & Outsourced Services-0.09% |
| |||||||
Fiserv, Inc., Sr. Unsec. Sub. Global Notes, 3.80%, 10/01/2023 | 5,200,000 | 5,236,077 | ||||||
Visa, Inc., Sr. Unsec. Global Notes, 4.15%, 12/14/2035 | 7,245,000 | 7,606,916 | ||||||
12,842,993 | ||||||||
Diversified Banks-1.79% |
| |||||||
ANZ New Zealand (Int’l) Ltd. (New Zealand), Sr. Unsec. Gtd. Notes, 2.88%, 01/25/2022(c) | 3,545,000 | 3,508,887 | ||||||
Australia and New Zealand Banking Group Ltd. (Australia), Sr. Unsec. Medium-Term Global Notes, 2.70%, 11/16/2020 | 30,315,000 | 30,190,835 | ||||||
2.30%, 06/01/2021 | 7,448,000 | 7,328,807 |
Principal Amount | Value | |||||||
Diversified Banks-(continued) |
| |||||||
Bank of America Corp., Sr. Unsec. Medium-Term Notes, 3.25%, 10/21/2027 | $ | 5,705,000 | $ | 5,464,871 | ||||
Bank of Montreal (Canada), Sr. Unsec. Medium-Term Notes, 2.10%, 12/12/2019 | 26,340,000 | 26,214,960 | ||||||
BBVA Bancomer S.A. (Mexico), Sr. Unsec. Notes, | 6,875,000 | 6,900,781 | ||||||
Citigroup Inc., Sr. Unsec. Global Notes, 3.67% (3 mo. USD LIBOR + 1.39%), 07/24/2028(e) | 5,405,000 | 5,298,366 | ||||||
Unsec. Sub. Global Notes, 6.68%, 09/13/2043 | 8,000,000 | 9,884,141 | ||||||
5.30%, 05/06/2044 | 2,765,000 | 2,933,836 | ||||||
Unsec. Sub. Notes, 4.75%, 05/18/2046 | 4,145,000 | 4,092,024 | ||||||
Commonwealth Bank of Australia (Australia), Sr. Unsec. Notes, 2.25%, 03/10/2020(c) | 10,540,000 | 10,475,511 | ||||||
Cooperatieve Rabobank UA (Netherlands), Jr. Unsec. Sub. Notes, 11.00%(c)(f) | 7,975,000 | 8,184,344 | ||||||
Discover Bank, Sr. Unsec. Notes, 3.35%, 02/06/2023 | 5,380,000 | 5,318,197 | ||||||
JPMorgan Chase & Co., Series V, Jr. Unsec. Sub. Global Notes, 5.00%(f) | 6,410,000 | 6,410,000 | ||||||
Sr. Unsec. Global Notes, 3.20%, 06/15/2026 | 4,365,000 | 4,241,536 | ||||||
3.51% (3 mo. USD LIBOR + 0.95%), 01/23/2029(e) | 11,170,000 | 10,882,508 | ||||||
4.26% (3 mo. USD LIBOR + 1.58%), 02/22/2048(e) | 5,355,000 | 5,287,040 | ||||||
3.90% (3 mo. USD LIBOR + 1.22%), 01/23/2049(e) | 11,170,000 | 10,412,214 | ||||||
Mizuho Bank Ltd. (Japan), Sr. Unsec. Gtd. Notes, 2.65%, 09/25/2019(c) | 7,110,000 | 7,103,507 | ||||||
Mizuho Financial Group Cayman 3 Ltd. (Japan), Unsec. Gtd. Sub. Notes, 4.60%, 03/27/2024(c) | 545,000 | 556,397 | ||||||
National Australia Bank Ltd. (Australia), Sr. Unsec. Notes, 1.88%, 07/12/2021 | 9,725,000 | 9,462,405 | ||||||
SMBC Aviation Capital Finance DAC (Ireland), Sr. Unsec. Gtd. Notes, 2.65%, 07/15/2021(c) | 3,225,000 | 3,148,831 | ||||||
Societe Generale S.A. (France), Sr. Unsec. Notes, 2.63%, 09/16/2020(c) | 8,565,000 | 8,496,879 | ||||||
Unsec. Sub. Notes, 5.00%, 01/17/2024(c) | 7,365,000 | 7,549,269 | ||||||
Standard Chartered PLC (United Kingdom), Sr. Unsec. Notes, 3.05%, | 7,250,000 | 7,197,554 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Equity and Income Fund |
Principal Amount | Value | |||||||
Diversified Banks-(continued) |
| |||||||
Sumitomo Mitsui Banking Corp. (Japan), Sr. Unsec. Gtd. Medium-Term Global Notes, | $ | 7,235,000 | $ | 7,198,097 | ||||
U.S. Bancorp, Series W, Unsec. Sub. Medium-Term Notes, | 3,245,000 | 3,180,973 | ||||||
Wells Fargo & Co., Sr. Unsec. Medium-Term Notes, | 6,840,000 | 6,841,353 | ||||||
Unsec. Sub. Medium-Term Notes, | 4,515,000 | 4,550,405 | ||||||
4.65%, 11/04/2044 | 14,430,000 | 14,374,722 | ||||||
242,689,250 | ||||||||
Diversified Capital Markets-0.56% |
| |||||||
Credit Suisse AG (Switzerland), Unsec. Sub. Notes, | 6,536,000 | 7,001,285 | ||||||
Credit Suisse Group AG (Switzerland), Sr. Unsec. Conv. Medium-Term Notes, | 75,750,000 | 69,530,925 | ||||||
76,532,210 | ||||||||
Diversified Chemicals-0.02% |
| |||||||
Eastman Chemical Co., Sr. Unsec. Global Notes, | 2,529,000 | 2,522,257 | ||||||
Diversified Metals & Mining-0.02% |
| |||||||
Rio Tinto Finance USA Ltd. (Australia), Sr. Unsec. Gtd. Global Notes, 7.13%, 07/15/2028 | 2,175,000 | 2,764,044 | ||||||
Diversified REITs-0.02% | ||||||||
Regency Centers, L.P., Sr. Unsec. Gtd. Notes, 4.65%, 03/15/2049 | 2,970,000 | 2,945,469 | ||||||
Drug Retail-0.13% | ||||||||
CVS Pass Through Trust, Sr. Sec. | 7,220,602 | 7,781,929 | ||||||
Walgreens Boots Alliance, Inc., | 6,129,000 | 6,165,571 | ||||||
4.50%, 11/18/2034 | 4,519,000 | 4,371,838 | ||||||
18,319,338 | ||||||||
Electric Utilities-0.18% | ||||||||
Electricite de France S.A. (France), Jr. Unsec. Sub. Notes, | 6,390,000 | 6,163,698 | ||||||
Sr. Unsec. Notes, 4.60%, 01/27/2020(c) | 2,150,000 | 2,189,536 | ||||||
4.88%, 01/22/2044(c) | 9,110,000 | 8,753,466 |
Principal Amount | Value | |||||||
Electric Utilities-(continued) |
| |||||||
NextEra Energy Capital Holdings, Inc., Sr. Unsec. Gtd. Deb., | $ | 5,572,000 | $ | 5,443,320 | ||||
Ohio Power Co., Series M, Sr. Unsec. Notes, 5.38%, 10/01/2021 | 1,050,000 | 1,114,207 | ||||||
PPL Electric Utilities Corp., Sr. Sec. First Mortgage Bonds, | 355,000 | 446,621 | ||||||
24,110,848 | ||||||||
Environmental & Facilities Services-0.03% |
| |||||||
Waste Management, Inc., Sr. Unsec. Gtd. Global Notes, | 4,786,000 | 4,659,544 | ||||||
Financial Exchanges & Data-0.07% |
| |||||||
Moody’s Corp., Sr. Unsec. Global Notes, 4.50%, 09/01/2022 | 9,185,000 | 9,521,747 | ||||||
Food Retail-0.01% | ||||||||
Alimentation Couche-Tard Inc. (Canada), Sr. Unsec. Gtd. Notes, 4.50%, 07/26/2047(c) | 1,188,000 | 1,076,587 | ||||||
General Merchandise Stores-0.03% |
| |||||||
Dollar General Corp., | 3,650,000 | 3,599,967 | ||||||
Health Care Distributors-0.08% |
| |||||||
McKesson Corp., Sr. Unsec. Global Notes, 2.28%, 03/15/2019 | 11,085,000 | 11,082,979 | ||||||
Health Care Equipment-1.29% |
| |||||||
Becton, Dickinson and Co., Sr. Unsec. Global Notes, | 7,465,000 | 7,221,279 | ||||||
Sr. Unsec. Notes, 2.68%, 12/15/2019 | 2,786,000 | 2,775,743 | ||||||
DexCom, Inc., Sr. Unsec. Conv. Notes, | 25,054,000 | 37,641,380 | ||||||
Sr. Unsec. Notes, 0.75%, 12/01/2023(c) | 30,543,000 | 33,653,133 | ||||||
Insulet Corp., Sr. Unsec. Conv. Notes, 1.38%, 11/15/2024(c) | 4,536,000 | 5,463,648 | ||||||
Medtronic, Inc., Sr. Unsec. Gtd. Global Notes, 3.15%, 03/15/2022 | 10,944,000 | 11,039,318 | ||||||
4.38%, 03/15/2035 | 3,635,000 | 3,833,140 | ||||||
4.63%, 03/15/2044 | 5,490,000 | 6,050,706 | ||||||
NuVasive, Inc., Sr. Unsec. Conv. Notes, 2.25%, 03/15/2021 | 20,477,000 | 23,101,128 | ||||||
Wright Medical Group N.V., Sr. Unsec. Conv. Bonds, 2.25%, 11/15/2021 | 9,978,000 | 15,403,537 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Equity and Income Fund |
Principal Amount | Value | |||||||
Health Care Equipment-(continued) |
| |||||||
Wright Medical Group, Inc., Sr. Unsec. Gtd. Conv. Notes, | $ | 25,471,000 | $ | 28,400,165 | ||||
174,583,177 | ||||||||
Health Care REITs-0.32% |
| |||||||
HCP, Inc., | 30,889,000 | 30,816,099 | ||||||
4.20%, 03/01/2024 | 4,690,000 | 4,775,968 | ||||||
3.88%, 08/15/2024 | 5,085,000 | 5,106,074 | ||||||
Ventas Realty L.P., Sr. Unsec. Gtd. Notes, | 2,080,000 | 2,306,342 | ||||||
43,004,483 | ||||||||
Health Care Services-0.26% |
| |||||||
CVS Health Corp., Sr. Unsec. Global Bonds, | 3,740,000 | 3,674,021 | ||||||
Sr. Unsec. Global Notes, 4.10%, 03/25/2025 | 13,266,000 | 13,461,064 | ||||||
Express Scripts Holding Co., Sr. Unsec. Gtd. Global Notes, 2.25%, 06/15/2019 | 5,685,000 | 5,673,810 | ||||||
Halfmoon Parent, Inc., Sr. Sec. Unsub. Notes, 4.80%, 08/15/2038(c) | 3,240,000 | 3,240,559 | ||||||
Laboratory Corp. of America Holdings, Sr. Unsec. Notes, 3.20%, 02/01/2022 | 6,132,000 | 6,106,398 | ||||||
4.70%, 02/01/2045 | 2,694,000 | 2,532,441 | ||||||
34,688,293 | ||||||||
Home Improvement Retail-0.05% |
| |||||||
Home Depot, Inc. (The), Sr. Unsec. Global Notes, 2.00%, 04/01/2021 | 6,883,000 | 6,792,400 | ||||||
Homebuilding-0.06% | ||||||||
MDC Holdings, Inc., Sr. Unsec. Gtd. Notes, 6.00%, 01/15/2043 | 10,130,000 | 8,661,150 | ||||||
Hotel & Resort REITs-0.03% |
| |||||||
Hospitality Properties Trust, | 1,310,000 | 1,336,131 | ||||||
4.50%, 06/15/2023 | 2,765,000 | 2,751,407 | ||||||
4,087,538 | ||||||||
Housewares & Specialties-0.04% |
| |||||||
Tupperware Brands Corp., Sr. Unsec. Gtd. Global Notes, 4.75%, 06/01/2021 | 5,638,000 | 5,764,782 |
Principal Amount | Value | |||||||
Insurance Brokers-0.05% |
| |||||||
Marsh & McLennan Cos., Inc., Sr. Unsec. Sub. Global Notes, | $ | 3,810,000 | $ | 3,957,685 | ||||
Willis North America, Inc., Sr. Unsec. Gtd. Global Notes, 3.60%, 05/15/2024 | 2,470,000 | 2,447,795 | ||||||
6,405,480 | ||||||||
Integrated Oil & Gas-0.14% |
| |||||||
Husky Energy Inc. (Canada), Sr. Unsec. Global Notes, 3.95%, 04/15/2022 | 3,630,000 | 3,675,759 | ||||||
Occidental Petroleum Corp., Sr. Unsec. Global Notes, 3.40%, 04/15/2026 | 4,005,000 | 4,013,018 | ||||||
Petróleos Mexicanos (Mexico), Sr. Unsec. Gtd. Global Notes, 4.88%, 01/24/2022 | 7,430,000 | 7,403,995 | ||||||
Suncor Energy Inc. (Canada), Sr. Unsec. Notes, 3.60%, 12/01/2024 | 3,379,000 | 3,400,960 | ||||||
18,493,732 | ||||||||
Integrated Telecommunication Services-0.52% |
| |||||||
AT&T Inc., | 5,334,000 | 5,293,409 | ||||||
3.40%, 05/15/2025 | 2,967,000 | 2,893,637 | ||||||
4.30%, 02/15/2030 | 3,526,000 | 3,462,590 | ||||||
4.50%, 05/15/2035 | 4,755,000 | 4,486,496 | ||||||
5.35%, 09/01/2040 | 2,077,000 | 2,087,897 | ||||||
5.15%, 03/15/2042 | 1,370,000 | 1,336,941 | ||||||
4.80%, 06/15/2044 | 10,275,000 | 9,661,803 | ||||||
5.15%, 11/15/2046 | 3,698,000 | 3,621,206 | ||||||
Orange S.A. (France), Sr. Unsec. Global Notes, | 14,365,000 | 14,245,193 | ||||||
Telefónica Emisiones, S.A.U. (Spain), Sr. Unsec. Gtd. Global Notes, | 3,600,000 | 4,241,088 | ||||||
4.67%, 03/06/2038 | 3,505,000 | 3,216,374 | ||||||
5.21%, 03/08/2047 | 6,725,000 | 6,452,040 | ||||||
Verizon Communications Inc., Sr. Unsec. Global Notes, | 3,285,000 | 3,292,995 | ||||||
4.81%, 03/15/2039 | 5,062,000 | 5,216,606 | ||||||
4.13%, 08/15/2046 | 857,000 | 785,853 | ||||||
70,294,128 | ||||||||
Internet & Direct Marketing Retail-0.53% |
| |||||||
Amazon.com, Inc., Sr. Unsec. Global Notes, | 17,678,000 | 17,674,851 | ||||||
Ctrip.com International, Ltd. (China), Sr. Unsec. Conv. Bonds, | 30,912,000 | 30,450,700 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Equity and Income Fund |
Principal Amount | Value | |||||||
Internet & Direct Marketing Retail-(continued) |
| |||||||
Liberty Expedia Holdings, Inc., Sr. Unsec. Conv. Deb., | $ | 15,152,000 | $ | 14,945,963 | ||||
QVC, Inc., Sr. Sec. Gtd. First Lien Global Notes, | 8,810,000 | 8,114,200 | ||||||
71,185,714 | ||||||||
Investment Banking & Brokerage-0.52% |
| |||||||
Goldman Sachs Group, Inc. (The), Sr. Unsec. Global Notes, | 5,510,000 | 5,768,126 | ||||||
Unsec. Sub. Notes, 4.25%, 10/21/2025 | 5,807,000 | 5,836,418 | ||||||
GS Finance Corp., Series 0001, Sr. Unsec. Conv. Medium-Term Notes, | 56,790,000 | 52,357,540 | ||||||
Morgan Stanley, Sr. Unsec. Medium-Term Global Notes, | 6,870,000 | 6,985,702 | ||||||
70,947,786 | ||||||||
IT Consulting & Other Services-0.04% |
| |||||||
DXC Technology Co., Sr. Unsec. Global Notes, | 4,954,000 | 5,047,566 | ||||||
Life & Health Insurance-0.38% |
| |||||||
Athene Global Funding, Sec. Notes, | 12,280,000 | 12,475,015 | ||||||
Jackson National Life Global Funding, Sr. Sec. Notes, | 5,295,000 | 5,148,111 | ||||||
3.25%, 01/30/2024(c) | 4,885,000 | 4,848,822 | ||||||
Metropolitan Life Global Funding I, Sec. Notes, 2.05%, 06/12/2020(c) | 5,740,000 | 5,680,393 | ||||||
Nationwide Financial Services, Inc., Sr. Unsec. Notes, | 4,250,000 | 4,472,644 | ||||||
Prudential Financial, Inc., Sr. Unsec. Global Notes, | 4,898,000 | 4,518,058 | ||||||
3.94%, 12/07/2049 | 4,856,000 | 4,523,129 | ||||||
Reliance Standard Life Global Funding II, Sr. Sec. First Lien Notes, | 4,985,000 | 4,970,357 | ||||||
Teachers Insurance and Annuity Association of America, Unsec. Sub. Notes, | 4,869,000 | 4,801,194 | ||||||
51,437,723 | ||||||||
Movies & Entertainment-0.17% |
| |||||||
Live Nation Entertainment, Inc., Sr. Unsec. Conv. Notes, | 20,716,000 | 23,200,863 |
Principal Amount | Value | |||||||
Multi-line Insurance-0.11% |
| |||||||
American Financial Group, Inc., Sr. Unsec. Notes, | $ | 5,075,000 | $ | 4,587,140 | ||||
American International Group, Inc., Sr. Unsec. Global Notes, | 3,855,000 | 3,848,255 | ||||||
4.38%, 01/15/2055 | 7,405,000 | 6,271,113 | ||||||
14,706,508 | ||||||||
Multi-Utilities-0.08% |
| |||||||
NiSource Inc., Sr. Unsec. Global Notes, 4.38%, 05/15/2047 | 6,015,000 | 5,821,546 | ||||||
Sempra Energy, Sr. Unsec. Global Notes, 3.80%, 02/01/2038 | 5,871,000 | 5,192,360 | ||||||
11,013,906 | ||||||||
Office REITs-0.06% |
| |||||||
Government Properties Income Trust, Sr. Unsec. Global Notes, 4.00%, 07/15/2022 | 7,200,000 | 7,084,122 | ||||||
Highwoods Realty L.P., Sr. Unsec. Notes, 3.20%, 06/15/2021 | 1,650,000 | 1,634,164 | ||||||
8,718,286 | ||||||||
Oil & Gas Drilling-0.18% |
| |||||||
Ensco Jersey Finance Ltd., Sr. Unsec. Gtd. Conv. Bonds, | 19,995,000 | 16,158,539 | ||||||
Nabors Industries Inc., Sr. Unsec. Gtd. Conv. Bonds, | 10,882,000 | 7,661,505 | ||||||
23,820,044 | ||||||||
Oil & Gas Equipment & Services-0.18% |
| |||||||
Helix Energy Solutions Group, Inc., Sr. Unsec. Conv. Notes, | 10,666,000 | 10,537,368 | ||||||
Oil States International, Inc., Sr. Unsec. Conv. Notes, | 15,097,000 | 13,273,615 | ||||||
23,810,983 | ||||||||
Oil & Gas Exploration & Production-0.18% |
| |||||||
Anadarko Petroleum Corp., Sr. Unsec. Notes, 6.60%, 03/15/2046 | 4,830,000 | 5,718,022 | ||||||
Chesapeake Energy Corp., Sr. Unsec. Gtd. Conv. Bonds, 5.50%, 09/15/2026 | 10,145,000 | 9,317,432 | ||||||
ConocoPhillips Co., Sr. Unsec. Gtd. Global Notes, 4.15%, 11/15/2034 | 2,403,000 | 2,381,832 | ||||||
Noble Energy, Inc., Sr. Unsec. Global Notes, 5.25%, 11/15/2043 | 7,940,000 | 7,475,067 | ||||||
24,892,353 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco Equity and Income Fund |
Principal Amount | Value | |||||||
Oil & Gas Storage & Transportation-0.68% |
| |||||||
Enable Midstream Partners, L.P., Sr. Unsec. Global Notes, 2.40%, 05/15/2019 | $ | 4,395,000 | $ | 4,389,139 | ||||
Energy Transfer Partners, L.P., Sr. Unsec. Gtd. Notes, 4.20%, 09/15/2023 | 1,638,000 | 1,672,040 | ||||||
4.90%, 03/15/2035 | 3,640,000 | 3,403,327 | ||||||
Enterprise Products Operating LLC, Sr. Unsec. Gtd. Global Bonds, 6.45%, 09/01/2040 | 555,000 | 675,074 | ||||||
Sr. Unsec. Gtd. Global Notes, 5.25%, 01/31/2020 | 2,889,000 | 2,946,811 | ||||||
4.25%, 02/15/2048 | 7,354,000 | 6,899,928 | ||||||
Sr. Unsec. Gtd. Notes, 2.55%, 10/15/2019 | 3,770,000 | 3,764,094 | ||||||
Kinder Morgan, Inc., Sr. Unsec. Gtd. Notes, 5.30%, 12/01/2034 | 4,203,000 | 4,337,447 | ||||||
MPLX L.P., | 18,525,000 | 19,162,292 | ||||||
Sr. Unsec. Global Notes, 4.50%, 04/15/2038 | 8,564,000 | 7,899,582 | ||||||
Plains All American Pipeline L.P./PAA Finance Corp., Sr. Unsec. Global Notes, 3.65%, 06/01/2022 | 4,275,000 | 4,253,024 | ||||||
Spectra Energy Partners, L.P., Sr. Unsec. Global Notes, 4.50%, 03/15/2045 | 5,468,000 | 5,329,061 | ||||||
Sunoco Logistics Partners Operations L.P., Sr. Unsec. Gtd. Notes, 5.50%, 02/15/2020 | 5,405,000 | 5,499,813 | ||||||
5.30%, 04/01/2044 | 8,165,000 | 7,672,027 | ||||||
Texas Eastern Transmission L.P., Sr. Unsec. Notes, 7.00%, 07/15/2032 | 3,835,000 | 4,652,223 | ||||||
Western Gas Partners, L.P., Sr. Unsec. Notes, 5.45%, 04/01/2044 | 9,710,000 | 8,957,503 | ||||||
91,513,385 | ||||||||
Other Diversified Financial Services-1.01% |
| |||||||
Convertible Trust - Consumer, Series2018-1, Sr. Unsec. Medium-Term Notes, 0.25%, 01/17/2024 | 57,077,000 | 60,387,466 | ||||||
Convertible Trust - Healthcare, Series2018-1, Sr. Unsec. Medium-Term Notes, 0.25%, 02/05/2024 | 56,758,000 | 56,973,680 | ||||||
ERAC USA Finance LLC, Sr. Unsec. Gtd. Notes, | 9,335,000 | 9,294,033 | ||||||
MassMutual Global Funding II, Sec. Notes, 2.00%, 04/15/2021(c) | 10,205,000 | 9,994,454 | ||||||
136,649,633 |
Principal Amount | Value | |||||||
Packaged Foods & Meats-0.07% |
| |||||||
General Mills, Inc., Sr. Unsec. Global Notes, 2.20%, 10/21/2019 | $ | 8,595,000 | $ | 8,556,368 | ||||
Mead Johnson Nutrition Co. (United Kingdom), Sr. Unsec. Gtd. Global Notes, 4.13%, 11/15/2025 | 648,000 | 675,857 | ||||||
9,232,225 | ||||||||
Paper Packaging-0.11% |
| |||||||
International Paper Co., Sr. Unsec. Global Notes, 6.00%, 11/15/2041 | 2,855,000 | 3,068,504 | ||||||
Packaging Corp. of America, Sr. Unsec. Global Notes, 4.50%, 11/01/2023 | 11,003,000 | 11,428,771 | ||||||
14,497,275 | ||||||||
Pharmaceuticals-0.71% |
| |||||||
Allergan Funding SCS, Sr. Unsec. Gtd. Global Notes, 4.85%, 06/15/2044 | 9,265,000 | 8,578,707 | ||||||
Bayer US Finance II LLC (Germany), Sr. Unsec. Gtd. Notes, 2.13%, 07/15/2019(c) | 3,055,000 | 3,043,933 | ||||||
4.38%, 12/15/2028(c) | 9,800,000 | 9,547,284 | ||||||
Bayer US Finance LLC (Germany), Sr. Unsec. Gtd. Notes, | 21,949,000 | 21,854,012 | ||||||
3.00%, 10/08/2021(c) | 6,079,000 | 5,996,347 | ||||||
Jazz Investments I Ltd., Sr. Unsec. Gtd. Conv. Bonds, 1.88%, 08/15/2021 | 14,556,000 | 14,824,078 | ||||||
Medicines Co. (The), Sr. Unsec. Conv. Bonds, 2.75%, 07/15/2023 | 9,593,000 | 7,746,664 | ||||||
Mylan N.V., Sr. Unsec. Gtd. Global Notes, 3.15%, 06/15/2021 | 4,535,000 | 4,486,495 | ||||||
Pacira Pharmaceuticals, Inc., Sr. Unsec. Conv. Notes, 2.38%, 04/01/2022 | 7,610,000 | 7,683,924 | ||||||
Perrigo Finance Unlimited Co., Sr. Unsec. Gtd. Global Notes, 3.50%, 03/15/2021 | 520,000 | 507,712 | ||||||
Supernus Pharmaceuticals, Inc., Sr. Unsec. Conv. Notes, | 7,244,000 | 7,341,026 | ||||||
Zoetis, Inc., Sr. Unsec. Global Notes, 4.70%, 02/01/2043 | 4,101,000 | 4,227,178 | ||||||
95,837,360 | ||||||||
Property & Casualty Insurance-0.25% |
| |||||||
Allstate Corp. (The), Sr. Unsec. Bonds, 3.28%, 12/15/2026 | 3,260,000 | 3,233,552 | ||||||
CNA Financial Corp., Sr. Unsec. Global Bonds, 5.88%, 08/15/2020 | 4,915,000 | 5,097,829 | ||||||
Liberty Mutual Group Inc., Sr. Unsec. Gtd. Bonds, | 9,030,000 | 8,882,949 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 | Invesco Equity and Income Fund |
Principal Amount | Value | |||||||
Property & Casualty Insurance-(continued) |
| |||||||
Markel Corp., Sr. Unsec. Notes, 5.00%, 03/30/2043 | $ | 4,185,000 | $ | 4,114,079 | ||||
Travelers Cos., Inc. (The), Sr. Unsec. Global Notes, 4.60%, 08/01/2043 | 6,455,000 | 6,881,360 | ||||||
WR Berkley Corp., Sr. Unsec. Global Notes, 4.63%, 03/15/2022 | 5,040,000 | 5,169,282 | ||||||
33,379,051 | ||||||||
Railroads-0.17% |
| |||||||
Burlington Northern Santa Fe, LLC, Sr. Unsec. Deb., 5.15%, 09/01/2043 | 9,530,000 | 10,815,755 | ||||||
CSX Corp., Sr. Unsec. Notes, 5.50%, 04/15/2041 | 1,660,000 | 1,849,110 | ||||||
Union Pacific Corp., Sr. Unsec. Notes, 4.85%, 06/15/2044 | 5,560,000 | 5,680,159 | ||||||
4.15%, 01/15/2045 | 4,410,000 | 4,147,140 | ||||||
22,492,164 | ||||||||
Regional Banks-0.07% |
| |||||||
Citizens Financial Group, Inc., Sr. Unsec. Global Notes, 2.38%, 07/28/2021 | 4,700,000 | 4,606,455 | ||||||
SunTrust Banks, Inc., Unsec. Sub. Global Notes, 3.30%, 05/15/2026 | 4,670,000 | 4,548,276 | ||||||
9,154,731 | ||||||||
Reinsurance-0.03% |
| |||||||
Reinsurance Group of America, Inc., | 3,711,000 | 3,866,070 | ||||||
Renewable Electricity-0.04% |
| |||||||
Oglethorpe Power Corp., Sr. Sec. First Mortgage Bonds, 4.55%, 06/01/2044 | 5,806,000 | 5,480,846 | ||||||
Semiconductor Equipment-0.17% |
| |||||||
Applied Materials, Inc., Sr. Unsec. Global Notes, 2.63%, 10/01/2020 | 22,800,000 | 22,705,647 | ||||||
Semiconductors-0.95% |
| |||||||
Broadcom Corp./Broadcom Cayman Finance Ltd., Sr. Unsec. Gtd. Global Notes, 3.63%, 01/15/2024 | 6,975,000 | 6,784,249 | ||||||
Cree, Inc., Sr. Unsec. Conv. Notes, | 33,830,000 | 37,699,306 | ||||||
Microchip Technology, Inc., | 20,600,000 | 23,724,588 | ||||||
Micron Technology, Inc., Series G, Sr. Unsec. Conv. Global Bonds, 3.00%, 11/15/2043(d) | 15,332,000 | 21,522,862 |
Principal Amount | Value | |||||||
Semiconductors-(continued) |
| |||||||
NXP B.V./NXP Funding LLC (Netherlands), Sr. Sec. Gtd. Global Notes, | $ | 7,660,000 | $ | 7,978,120 | ||||
ON Semiconductor Corp., Sr. Unsec. Gtd. Conv. Bonds, 1.00%, 12/01/2020 | 17,148,000 | 22,102,074 | ||||||
Silicon Laboratories Inc., Sr. Unsec. Conv. Bonds, 1.38%, 03/01/2022 | 5,936,000 | 6,446,069 | ||||||
Texas Instruments, Inc., Sr. Unsec. Notes, 2.63%, 05/15/2024 | 2,275,000 | 2,228,150 | ||||||
128,485,418 | ||||||||
Specialized REITs-0.24% |
| |||||||
Crown Castle International Corp., Sr. Unsec. Global Bonds, 3.80%, 02/15/2028 | 10,479,000 | 10,130,256 | ||||||
Sr. Unsec. Global Notes, 4.75%, 05/15/2047 | 470,000 | 444,763 | ||||||
EPR Properties, Sr. Unsec. Gtd. Global Notes, 4.75%, 12/15/2026 | 17,525,000 | 17,656,810 | ||||||
Life Storage LP, Sr. Unsec. Gtd. Global Notes, 3.50%, 07/01/2026 | 4,667,000 | 4,413,007 | ||||||
32,644,836 | ||||||||
Specialty Chemicals-0.01% |
| |||||||
Sherwin-Williams Co. (The), Sr. Unsec. Global Notes, 4.50%, 06/01/2047 | 1,665,000 | 1,557,512 | ||||||
Systems Software-0.28% |
| |||||||
FireEye, Inc., Series A, Sr. Unsec. Conv. Bonds, 1.00%, 06/01/2035(d) | 17,382,000 | 16,947,450 | ||||||
Series B, Sr. Unsec. Conv. Bonds, 1.63%, | 17,616,000 | 16,375,869 | ||||||
Microsoft Corp., Sr. Unsec. Global Notes, 3.50%, 02/12/2035 | 4,259,000 | 4,171,723 | ||||||
37,495,042 | ||||||||
Technology Distributors-0.06% |
| |||||||
Avnet, Inc., Sr. Unsec. Global Notes, 4.63%, 04/15/2026 | 7,645,000 | 7,608,984 | ||||||
Technology Hardware, Storage & Peripherals-0.43% |
| |||||||
Apple Inc., | 7,303,000 | 7,186,647 | ||||||
3.35%, 02/09/2027 | 3,495,000 | 3,497,304 | ||||||
Dell International LLC/EMC Corp., | 7,237,000 | 7,610,338 | ||||||
8.35%, 07/15/2046(c) | 278,000 | 325,751 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 | Invesco Equity and Income Fund |
Principal Amount | Value | |||||||
Technology Hardware, Storage & Peripherals-(continued) |
| |||||||
SanDisk Corp., Sr. Unsec. Gtd. Conv. Bonds, | $ | 24,327,000 | $ | 21,326,751 | ||||
Western Digital Corp., Sr. Unsec. Gtd. Conv. Notes, | 20,616,000 | 18,222,297 | ||||||
58,169,088 | ||||||||
Tobacco-0.21% | ||||||||
Altria Group, Inc., Sr. Unsec. Gtd. Global Notes, | 12,541,000 | 12,534,711 | ||||||
Philip Morris International Inc., Sr. Unsec. Global Notes, | 3,940,000 | 4,015,662 | ||||||
4.88%, 11/15/2043 | 11,740,000 | 11,609,835 | ||||||
28,160,208 | ||||||||
Trading Companies & Distributors-0.09% |
| |||||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust (Ireland), Sr. Unsec. Gtd. Global Notes, | 4,189,000 | 4,210,208 | ||||||
Air Lease Corp., Sr. Unsec. Global Notes, | 627,000 | 602,232 | ||||||
4.25%, 09/15/2024 | 4,355,000 | 4,355,850 | ||||||
Aircastle Ltd., Sr. Unsec. Notes, | 3,090,000 | 3,077,237 | ||||||
12,245,527 | ||||||||
Trucking-0.10% |
| |||||||
Aviation Capital Group LLC, Sr. Unsec. Notes, | 6,230,000 | 6,087,644 | ||||||
4.88%, 10/01/2025(c) | 7,745,000 | 7,867,010 | ||||||
13,954,654 | ||||||||
Wireless Telecommunication Services-0.15% |
| |||||||
América Móvil, S.A.B. de C.V. (Mexico), Sr. Unsec. Global Notes, | 6,610,000 | 6,674,615 | ||||||
Rogers Communications Inc. (Canada), Sr. Unsec. Gtd. Global Notes, | 6,080,000 | 6,001,495 | ||||||
4.30%, 02/15/2048 | 8,020,000 | 7,766,876 | ||||||
20,442,986 | ||||||||
Total U.S. Dollar Denominated Bonds & Notes |
| 2,547,183,777 | ||||||
U.S. Treasury Securities-11.28% |
| |||||||
U.S. Treasury Bills-0.01% |
| |||||||
2.40% - 2.43%, 06/27/2019(g)(h) | 1,055,000 | 1,046,722 |
Principal Amount | Value | |||||||
U.S. Treasury Bonds-1.19% |
| |||||||
4.50%, 02/15/2036 | $ | 9,250,000 | $ | 11,324,927 | ||||
3.38%, 11/15/2048 | 141,016,900 | 149,111,600 | ||||||
160,436,527 | ||||||||
U.S. Treasury Notes-10.08% |
| |||||||
3.63%, 08/15/2019 | 58,350,000 | 58,642,890 | ||||||
3.38%, 11/15/2019 | 10,000,000 | 10,056,250 | ||||||
2.50%, 01/31/2021 | 515,861,000 | 515,619,190 | ||||||
2.50%, 02/15/2022 | 122,192,000 | 122,215,865 | ||||||
2.50%, 01/31/2024 | 445,966,700 | 445,539,897 | ||||||
2.63%, 01/31/2026 | 26,831,000 | 26,849,866 | ||||||
2.63%, 02/15/2029 | 186,978,700 | 185,455,846 | ||||||
1,364,379,804 | ||||||||
Total U.S. Treasury Securities |
| 1,525,863,053 | ||||||
Shares | ||||||||
Preferred Stocks-0.54% |
| |||||||
Asset Management & Custody Banks-0.18% |
| |||||||
AMG Capital Trust II, $2.58 Conv. Pfd. | 483,000 | 24,690,332 | ||||||
Diversified Banks-0.03% | ||||||||
Wells Fargo & Co., | 142,800 | 3,637,116 | ||||||
Oil & Gas Storage & Transportation-0.33% |
| |||||||
El Paso Energy Capital Trust I, | 875,900 | 44,005,216 | ||||||
Total Preferred Stocks |
| 72,332,664 |
Principal Amount | ||||||||
U.S. Government Sponsored Agency Securities-0.13% |
| |||||||
Federal Home Loan Mortgage Corp. (FHLMC)-0.07% |
| |||||||
Federal Home Loan Mortgage Corp., Unsec. Global Notes, | $ | 7,000,000 | 9,478,763 | |||||
Federal National Mortgage Association (FNMA)-0.06% |
| |||||||
Federal National Mortgage Association, Unsec. Global Notes, | 6,315,000 | 8,454,945 | ||||||
Total U.S. Government Sponsored Agency Securities (Cost $17,453,056) |
| 17,933,708 | ||||||
Municipal Obligations-0.04% |
| |||||||
Georgia (State of) Municipal Electric Authority (Plant Vogtle Units 3 & 4 Project M) Series 2010 A, Taxable Build America RB, | 4,971,000 | 5,635,175 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 | Invesco Equity and Income Fund |
Principal Amount | Value | |||||||
U.S. Government Sponsored Agency Mortgage-Backed Securities-0.00% |
| |||||||
Federal Home Loan Mortgage Corp. (FHLMC)-0.00% |
| |||||||
Pass Through Ctfs., | $ | 1 | $ | 1 | ||||
5.50%, 02/01/2037 | 16 | 17 | ||||||
18 | ||||||||
Federal National Mortgage Association (FNMA)–0.00% |
| |||||||
Pass Through Ctfs., | 20 | 21 | ||||||
7.00%, 06/01/2032 to 07/01/2032 | 8,078 | 8,103 | ||||||
8,124 | ||||||||
Government National Mortgage Association (GNMA)-0.00% |
| |||||||
Pass Through Ctfs., 8.00%, | 16,959 | 17,437 | ||||||
7.50%, 12/20/2030 | 1,141 | 1,328 | ||||||
18,765 | ||||||||
Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $26,630) |
| 26,907 |
Shares | Value | |||||||
Money Market Funds-5.61% |
| |||||||
Invesco Government & Agency Portfolio-Institutional Class, | 256,725,551 | $ | 256,725,551 | |||||
Invesco Liquid Assets Portfolio- Institutional Class, 2.51%(i) | 193,295,857 | 193,353,845 | ||||||
Invesco Treasury Portfolio- Institutional Class, 2.29%(i) | 309,403,207 | 309,403,207 | ||||||
Total Money Market Funds (Cost $759,457,532) | 759,482,603 | |||||||
TOTAL INVESTMENTS IN SECURITIES- |
| 13,488,600,057 | ||||||
OTHER ASSETS LESS LIABILITIES-0.31% |
| 42,530,900 | ||||||
NET ASSETS-100.00% | $ | 13,531,130,957 |
Abbreviations: | ||
Conv. | - Convertible | |
Ctfs. | - Certificates | |
Deb. | - Debentures | |
Gtd. | - Guaranteed | |
Jr. | - Junior | |
LIBOR | - London Interbank Offered Rate | |
Pfd. | - Preferred | |
RB | - Revenue Bonds | |
REIT | - Real Estate Investment Trust | |
Sec. | - Secured | |
Sr. | - Senior | |
Sub. | - Subordinated | |
Unsec. | - Unsecured | |
Unsub. | - Unsubordinated | |
USD | - U.S. Dollar |
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 purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). 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 28, 2019 was $591,787,695, which represented 4.37% of the Fund’s Net Assets. |
(d) | Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put. |
(e) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2019. |
(f) | Perpetual bond with no specified maturity date. |
(g) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1K. |
(h) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
(i) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the7-day SEC standardized yield as of February 28, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 | Invesco Equity and Income Fund |
Portfolio Composition
By security type, based on Net Assets
as of February 28, 2019
Common Stocks & Other Equity Interests | 63.26 | % | ||
U.S. Dollar Denominated Bonds & Notes | 18.83 | |||
U.S. Treasury Securities | 11.28 | |||
Security types each less than 1% of portfolio | 0.71 | |||
Money Market Funds Plus Other Assets Less Liabilities | 5.92 |
Open Futures Contracts | ||||||||||||||||||||
| ||||||||||||||||||||
Short Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation | |||||||||||||||
| ||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
| ||||||||||||||||||||
U.S. Treasury 5 Year Notes | 267 | June-2019 | $ | (30,654,302 | ) | $ 66,115 | $ 66,115 | |||||||||||||
| ||||||||||||||||||||
U.S. Treasury 10 Year Notes | 604 | June-2019 | (73,903,625 | ) | 215,625 | 215,625 | ||||||||||||||
| ||||||||||||||||||||
Total Futures Contracts | $281,740 | $281,740 | ||||||||||||||||||
|
Open Forward Foreign Currency Contracts | ||||||||||||||||||||||
| ||||||||||||||||||||||
Settlement |
Contract to | Unrealized Appreciation | ||||||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||||
| ||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||
| ||||||||||||||||||||||
03/01/2019 | Bank of New York Mellon (The) | CHF | 50,005,715 | USD | 50,576,931 | $ | 473,514 | |||||||||||||||
| ||||||||||||||||||||||
03/01/2019 | Bank of New York Mellon (The) | EUR | 31,813,350 | USD | 36,455,554 | 269,479 | ||||||||||||||||
| ||||||||||||||||||||||
03/01/2019 | Bank of New York Mellon (The) | USD | 53,150,904 | CHF | 53,129,803 | 82,705 | ||||||||||||||||
| ||||||||||||||||||||||
03/01/2019 | Bank of New York Mellon (The) | USD | 35,833,456 | EUR | 31,540,759 | 42,560 | ||||||||||||||||
| ||||||||||||||||||||||
03/01/2019 | Bank of New York Mellon (The) | USD | 159,506,532 | GBP | 121,971,601 | 2,270,460 | ||||||||||||||||
| ||||||||||||||||||||||
03/01/2019 | State Street Bank & Trust Co. | CHF | 50,005,744 | USD | 50,594,154 | 490,708 | ||||||||||||||||
| ||||||||||||||||||||||
03/01/2019 | State Street Bank & Trust Co. | EUR | 31,813,348 | USD | 36,470,027 | 283,954 | ||||||||||||||||
| ||||||||||||||||||||||
03/01/2019 | State Street Bank & Trust Co. | USD | 46,886,157 | CHF | 46,881,655 | 87,097 | ||||||||||||||||
| ||||||||||||||||||||||
03/01/2019 | State Street Bank & Trust Co. | USD | 36,452,461 | EUR | 32,085,939 | 43,671 | ||||||||||||||||
| ||||||||||||||||||||||
03/01/2019 | State Street Bank & Trust Co. | USD | 141,182,265 | GBP | 107,934,211 | 1,976,239 | ||||||||||||||||
| ||||||||||||||||||||||
03/29/2019 | Bank of New York Mellon (The) | CAD | 41,042,019 | USD | 31,223,482 | 13,771 | ||||||||||||||||
| ||||||||||||||||||||||
03/29/2019 | State Street Bank & Trust Co. | CAD | 36,874,337 | USD | 28,047,527 | 7,060 | ||||||||||||||||
| ||||||||||||||||||||||
Subtotal-Appreciation | 6,041,218 | |||||||||||||||||||||
| ||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||
| ||||||||||||||||||||||
03/01/2019 | Bank of New York Mellon (The) | CAD | 38,839,502 | USD | 29,280,391 | (234,030 | ) | |||||||||||||||
| ||||||||||||||||||||||
03/01/2019 | Bank of New York Mellon (The) | GBP | 114,952,904 | USD | 151,703,577 | (764,168 | ) | |||||||||||||||
| ||||||||||||||||||||||
03/01/2019 | Bank of New York Mellon (The) | USD | 31,108,498 | CAD | 40,917,007 | (15,366 | ) | |||||||||||||||
| ||||||||||||||||||||||
03/01/2019 | State Street Bank & Trust Co. | CAD | 38,839,525 | USD | 29,293,725 | (220,713 | ) | |||||||||||||||
| ||||||||||||||||||||||
03/01/2019 | State Street Bank & Trust Co. | GBP | 114,952,908 | USD | 151,713,699 | (754,052 | ) | |||||||||||||||
| ||||||||||||||||||||||
03/01/2019 | State Street Bank & Trust Co. | USD | 27,944,072 | CAD | 36,762,019 | (8,345 | ) | |||||||||||||||
| ||||||||||||||||||||||
03/29/2019 | Bank of New York Mellon (The) | CHF | 53,065,956 | USD | 53,223,071 | (72,590 | ) | |||||||||||||||
| ||||||||||||||||||||||
03/29/2019 | Bank of New York Mellon (The) | EUR | 31,499,887 | USD | 35,868,922 | (36,178 | ) | |||||||||||||||
| ||||||||||||||||||||||
03/29/2019 | Bank of New York Mellon (The) | GBP | 121,820,232 | USD | 159,532,121 | (2,252,976 | ) | |||||||||||||||
| ||||||||||||||||||||||
03/29/2019 | State Street Bank & Trust Co. | CAD | 5,726,000 | USD | 4,352,913 | (1,326 | ) | |||||||||||||||
| ||||||||||||||||||||||
03/29/2019 | State Street Bank & Trust Co. | CHF | 53,066,269 | USD | 53,202,471 | (93,504 | ) | |||||||||||||||
| ||||||||||||||||||||||
03/29/2019 | State Street Bank & Trust Co. | EUR | 31,510,339 | USD | 35,881,075 | (35,937 | ) | |||||||||||||||
| ||||||||||||||||||||||
03/29/2019 | State Street Bank & Trust Co. | GBP | 121,822,600 | USD | 159,557,080 | (2,231,163 | ) | |||||||||||||||
| ||||||||||||||||||||||
Subtotal-Depreciation | (6,720,348 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||
Total Forward Foreign Currency Contracts | $ | (679,130 | ) | |||||||||||||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 | Invesco Equity and Income Fund |
Abbreviations: |
CAD –Canadian Dollar |
CHF –Swiss Franc |
EUR –Euro |
GBP –British Pound Sterling |
USD –U.S. Dollar |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
17 | Invesco Equity and Income Fund |
Statement of Assets and Liabilities
February 28, 2019
(Unaudited)
Assets: | ||||
Investments in securities, at value | $ | 12,729,117,454 | ||
Investments in affiliated money market funds, at value (Cost $759,457,532) | 759,482,603 | |||
Other investments: | ||||
Variation margin receivable - futures contracts | 283,813 | |||
Unrealized appreciation on forward foreign currency contracts outstanding | 6,041,218 | |||
Foreign currencies, at value (Cost $211,005) | 209,273 | |||
Receivable for: | ||||
Investments sold | 57,082,539 | |||
Fund shares sold | 7,121,802 | |||
Dividends | 20,270,212 | |||
Interest | 22,292,565 | |||
Investment for trustee deferred compensation and retirement plans | 1,285,623 | |||
Other assets | 181,184 | |||
Total assets | 13,603,368,286 | |||
Liabilities: | ||||
Other investments: | ||||
Unrealized depreciation on forward foreign currency contracts outstanding | 6,720,348 | |||
Payable for: | ||||
Investments purchased | 33,841,403 | |||
Fund shares reacquired | 23,303,635 | |||
Amount due custodian | 125,261 | |||
Accrued fees to affiliates | 6,132,225 | |||
Accrued trustees’ and officers’ fees and benefits | 30,982 | |||
Accrued other operating expenses | 614,246 | |||
Trustee deferred compensation and retirement plans | 1,469,229 | |||
Total liabilities | 72,237,329 | |||
Net assets applicable to shares outstanding | $ | 13,531,130,957 | ||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 11,580,670,883 | ||
Distributable earnings | 1,950,460,074 | |||
$ | 13,531,130,957 |
Net Assets: | ||||
Class A | $ | 10,041,455,259 | ||
Class C | $ | 643,049,099 | ||
Class R | $ | 170,609,736 | ||
Class Y | $ | 1,035,660,505 | ||
Class R5 | $ | 459,093,962 | ||
Class R6 | $ | 1,181,262,396 | ||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 1,006,481,756 | |||
Class C | 65,777,561 | |||
Class R | 17,005,959 | |||
Class Y | 103,773,737 | |||
Class R5 | 45,996,328 | |||
Class R6 | 118,398,584 | |||
Class A: | ||||
Net asset value per share | $ | 9.98 | ||
Maximum offering price per share | $ | 10.56 | ||
Class C: | ||||
Net asset value and offering price per share | $ | 9.78 | ||
Class R: | ||||
Net asset value and offering price per share | $ | 10.03 | ||
Class Y: | ||||
Net asset value and offering price per share | $ | 9.98 | ||
Class R5: | ||||
Net asset value and offering price per share | $ | 9.98 | ||
Class R6: | ||||
Net asset value and offering price per share | $ | 9.98 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
18 | Invesco Equity and Income Fund |
Statement of Operations
For the six months ended February 28, 2019
(Unaudited)
Investment income: | ||||
Interest | $ | 58,889,575 | ||
| ||||
Dividends (net of foreign withholding taxes of $1,689,313) | 113,941,700 | |||
| ||||
Dividends from affiliated money market funds | 6,713,845 | |||
| ||||
Total investment income | 179,545,120 | |||
| ||||
Expenses: | ||||
Advisory fees | 23,932,463 | |||
| ||||
Administrative services fees | 607,730 | |||
| ||||
Custodian fees | 20,305 | |||
| ||||
Distribution fees: | ||||
Class A | 11,884,411 | |||
| ||||
Class C | 5,831,233 | |||
| ||||
Class R | 449,400 | |||
| ||||
Transfer agent fees - A, C, R and Y | 9,236,188 | |||
| ||||
Transfer agent fees - R5 | 227,357 | |||
| ||||
Transfer agent fees - R6 | 41,520 | |||
| ||||
Trustees’ and officers’ fees and benefits | 117,980 | |||
| ||||
Registration and filing fees | 169,921 | |||
| ||||
Reports to shareholders | 379,824 | |||
| ||||
Professional services fees | 61,888 | |||
| ||||
Other | 94,000 | |||
| ||||
Total expenses | 53,054,220 | |||
| ||||
Less: Fees waived and expense offset arrangement(s) | (374,599 | ) | ||
| ||||
Net expenses | 52,679,621 | |||
| ||||
Net investment income | 126,865,499 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
| ||||
Investment securities | 339,779,102 | |||
| ||||
Foreign currencies | (847,716 | ) | ||
| ||||
Forward foreign currency contracts | 2,041,939 | |||
| ||||
Futures contracts | (1,601,784 | ) | ||
| ||||
339,371,541 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | (951,963,138 | ) | ||
| ||||
Foreign currencies | (67,503 | ) | ||
| ||||
Forward foreign currency contracts | 3,429,605 | |||
| ||||
Futures contracts | 316,097 | |||
| ||||
(948,284,939 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (608,913,398 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (482,047,899 | ) | |
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
19 | Invesco Equity and Income Fund |
Statement of Changes in Net Assets
For the six months ended February 28, 2019 and the year ended August 31, 2018
(Unaudited)
February 28, 2019 | August 31, 2018 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 126,865,499 | $ | 224,691,544 | ||||
| ||||||||
Net realized gain | 339,371,541 | 790,431,159 | ||||||
| ||||||||
Change in net unrealized appreciation (depreciation) | (948,284,939 | ) | 147,862,088 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | (482,047,899 | ) | 1,162,984,791 | |||||
| ||||||||
Distributions to shareholders from distributable earnings(1): | ||||||||
Class A | (662,106,054 | ) | (667,570,895 | ) | ||||
| ||||||||
Class B | - | (4,290,893 | ) | |||||
| ||||||||
Class C | (87,965,679 | ) | (91,883,104 | ) | ||||
| ||||||||
Class R | (12,287,112 | ) | (13,397,959 | ) | ||||
| ||||||||
Class Y | (78,353,047 | ) | (82,863,114 | ) | ||||
| ||||||||
Class R5 | (32,217,425 | ) | (32,795,473 | ) | ||||
| ||||||||
Class R6 | (82,647,201 | ) | (67,258,264 | ) | ||||
| ||||||||
Total distributions to shareholders from distributable earnings | (955,576,518 | ) | (960,059,702 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | 864,767,734 | (61,133,576 | ) | |||||
| ||||||||
Class B | - | (97,942,010 | ) | |||||
| ||||||||
Class C | (634,961,497 | ) | (141,090,843 | ) | ||||
| ||||||||
Class R | (12,828,961 | ) | (14,236,143 | ) | ||||
| ||||||||
Class Y | (37,692,926 | ) | (26,965,048 | ) | ||||
| ||||||||
Class R5 | 10,609,568 | 31,553,367 | ||||||
| ||||||||
Class R6 | 105,207,720 | 337,947,720 | ||||||
| ||||||||
Net increase in net assets resulting from share transactions | 295,101,638 | 28,133,467 | ||||||
| ||||||||
Net increase (decrease) in net assets | (1,142,522,779 | ) | 231,058,556 | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 14,673,653,736 | 14,442,595,180 | ||||||
| ||||||||
End of period | $ | 13,531,130,957 | $ | 14,673,653,736 | ||||
|
(1) | For the year ended August 31, 2018, distributions to shareholders from distributable earnings consisted of distributions from net investment income and distributions from net realized gains. The Securities and Exchange Commission eliminated the requirement to disclose the distribution components separately, except for tax return of capital. For the year ended August 31, 2018, distributions from net investment income were $204,059,936, $731,363, $19,632,122, $3,720,765, $27,131,829, $11,210,000 and $23,986,409 for Class A, Class B, Class C, Class R, Class Y, Class R5 and Class R6shares, respectively, and distributions from net realized gains were $463,510,959, $3,559,530, $72,250,982, $9,677,194, $55,731,285, $21,585,473 and $43,271,855 for Class A, Class B, Class C, Class R, Class Y, Class R5 and Class R6shares, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
20 | Invesco Equity and Income Fund |
Notes to Financial Statements
February 28, 2019
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco 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 anopen-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is current income and, secondarily, capital appreciation.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with afront-end sales charge unless certain waiver criteria are met. 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, Class R5 and Class R6shares are sold at net asset value.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946,Financial Services - Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations- Securities, including restricted securities, are valued according to the following policy. |
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such asinstitution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in theover-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments inopen-end andclosed-end registered investment companies that do not trade on an exchange are valued at theend-of-day net asset value per share. Investments inopen-end andclosed-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) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
21 | Invesco Equity and Income Fund |
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 orlosses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities.Pay-in-kind interest income andnon-cash dividend income received in the form of securitiesin-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on theex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates 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, theinvestment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions- Distributions from net investment income, if any, are declared and paid quarterly and are recorded on theex-dividend date.Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on theex-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 of 1986, asamended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses -Fees provided for under the Rule12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transferagency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6are allocated to each share class based on relative net assets.Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates -The preparation of financial statements in conformity with accounting principles generally accepted in theUnited 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 theperiod-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 Fund is indemnifiedagainst certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations- Foreign currency is valued at the close of the NYSE based on quotations posted by banks and majorcurrency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the 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 |
22 | Invesco Equity and Income Fund |
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. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. | Forward Foreign Currency Contracts– The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt deliveryand settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount(non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the dailymark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
K. | Futures Contracts– The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movementsand/or currency risks. A futures contract is an agreement between Counterparties 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. |
L. | Collateral–To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’spractice 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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
First $150 million | 0.50% | |||
Next $100 million | 0.45% | |||
Next $100 million | 0.40% | |||
Over $350 million | 0.35% |
For the six months ended February 28, 2019, the effective advisory fees incurred by the Fund was 0.35%.
Under the terms of a mastersub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “AffiliatedSub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such AffiliatedSub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such AffiliatedSub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2019, 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 C, Class R, Class Y, Class R5 and Class R6shares to 1.50%, 2.25%, 1.75%, 1.25%, 1.25% and 1.25%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary ornon-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement.
23 | Invesco Equity and Income Fund |
Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2019. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limit.
Further, the Adviser has contractually agreed, through at least June 30, 2020, 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 28, 2019, the Adviser waived advisory fees of $342,288.
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 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into asub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and 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 orsub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer agent fees.
Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A 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% of Class C average daily net assets and up to 0.50% of Class R average daily net assets. The fees are accrued daily and paid monthly.
With respect to 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 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 28, 2019, expenses incurred under these agreements are shown in the Statement of Operations asDistributionfees.
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 28, 2019, IDI advised the Fund that IDI retained $1,141,083 infront-end sales commissions from the sale of Class A shares and $19,787 and $29,135 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the six months ended February 28, 2019, the Fund incurred $33,633 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 - | Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 - | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 - | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of February 28, 2019. 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.
24 | Invesco Equity and Income Fund |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments in Securities | ||||||||||||||||
| ||||||||||||||||
Common Stocks & Other Equity Interests | $ | 8,560,142,170 | $ | – | $– | $ | 8,560,142,170 | |||||||||
| ||||||||||||||||
U.S. Dollar Denominated Bonds & Notes | – | 2,547,183,777 | – | 2,547,183,777 | ||||||||||||
| ||||||||||||||||
U.S. Treasury Securities | – | 1,525,863,053 | – | 1,525,863,053 | ||||||||||||
| ||||||||||||||||
Preferred Stocks | 47,642,332 | 24,690,332 | – | 72,332,664 | ||||||||||||
| ||||||||||||||||
U.S. Government Sponsored Agency Securities | – | 17,933,708 | – | 17,933,708 | ||||||||||||
| ||||||||||||||||
Municipal Obligations | – | 5,635,175 | – | 5,635,175 | ||||||||||||
| ||||||||||||||||
U.S. Government Sponsored Agency Mortgage-Backed Securities | – | 26,907 | – | 26,907 | ||||||||||||
| ||||||||||||||||
Money Market Funds | 759,482,603 | – | – | 759,482,603 | ||||||||||||
| ||||||||||||||||
Total Investments in Securities | 9,367,267,105 | 4,121,332,952 | – | 13,488,600,057 | ||||||||||||
| ||||||||||||||||
Other Investments - Assets* | ||||||||||||||||
| ||||||||||||||||
Futures Contracts | 281,740 | – | – | 281,740 | ||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | 6,041,218 | – | 6,041,218 | ||||||||||||
| ||||||||||||||||
281,740 | 6,041,218 | – | 6,322,958 | |||||||||||||
| ||||||||||||||||
Other Investments - Liabilities* | ||||||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | (6,720,348 | ) | – | (6,720,348 | ) | ||||||||||
| ||||||||||||||||
Total Other Investments | 281,740 | (679,130 | ) | – | (397,390 | ) | ||||||||||
| ||||||||||||||||
Total Investments | $ | 9,367,548,845 | $ | 4,120,653,822 | $– | $ | 13,488,202,667 | |||||||||
|
* | Unrealized appreciation (depreciation). |
NOTE 4–Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions andclose-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
Value of Derivative Investments atPeriod-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of February 28, 2019:
Value | ||||||||||||
Derivative Assets | Currency Risk | Interest Rate Risk | Total | |||||||||
| ||||||||||||
Unrealized appreciation on futures contracts – Exchange-Traded(a) | $ | - | $ | 281,740 | $ | 281,740 | ||||||
| ||||||||||||
Unrealized appreciation on forward foreign currency contracts outstanding | 6,041,218 | - | 6,041,218 | |||||||||
| ||||||||||||
Total Derivative Assets | 6,041,218 | 281,740 | 6,322,958 | |||||||||
| ||||||||||||
Derivatives not subject to master netting agreements | - | (281,740 | ) | (281,740 | ) | |||||||
| ||||||||||||
Total Derivative Assets subject to master netting agreements | $ | 6,041,218 | $ | - | $ | 6,041,218 | ||||||
|
(a) | The daily variation margin receivable (payable) atperiod-end is recorded in the Statement of Assets and Liabilities. |
Value | ||||||||||
Derivative Liabilities | Currency Risk | Interest Rate Risk | Total | |||||||
| ||||||||||
Unrealized depreciation on forward foreign currency contracts outstanding | $ | (6,720,348 | ) | $- | $ | (6,720,348 | ) | |||
| ||||||||||
Derivatives not subject to master netting agreements | - | - | - | |||||||
| ||||||||||
Total Derivative Liabilities subject to master netting agreements | $ | (6,720,348 | ) | $- | $ | (6,720,348 | ) | |||
|
(a) | The daily variation margin receivable (payable) atperiod-end is recorded in the Statement of Assets and Liabilities. |
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of February 28, 2019.
25 | Invesco Equity and Income Fund |
Financial Derivative Assets | Financial Derivative Liabilities | Collateral | ||||||||||||
Forward Foreign |
Forward Foreign | Net Value of Derivatives | (Received)/Pledged | Net Amount | ||||||||||
Counterparty | Non-Cash | Cash | ||||||||||||
| ||||||||||||||
Bank of New York Mellon (The) | $3,152,489 | $(3,375,307) | $(222,818) | $- | $ - | $(222,818) | ||||||||
| ||||||||||||||
State Street Bank & Trust Co. | 2,888,729 | (3,345,041) | (456,312) | - | - | (456,312) | ||||||||
| ||||||||||||||
Total | $6,041,218 | $(6,720,348) | $(679,130) | $- | $- | $(679,130) | ||||||||
|
Effect of Derivative Investments for the six months ended February 28, 2019
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain (Loss) on Statement of Operations | ||||||||||||
Currency Risk | Interest Rate Risk | Total | ||||||||||
| ||||||||||||
Realized Gain (Loss): | ||||||||||||
Forward foreign currency contracts | $ | 2,041,939 | $ | - | $ | 2,041,939 | ||||||
| ||||||||||||
Futures contracts | - | (1,601,784 | ) | (1,601,784 | ) | |||||||
| ||||||||||||
Change in Net Unrealized Appreciation: | ||||||||||||
Forward foreign currency contracts | 3,429,605 | - | 3,429,605 | |||||||||
| ||||||||||||
Futures contracts | - | 316,097 | 316,097 | |||||||||
| ||||||||||||
Total | $ | 5,471,544 | $ | (1,285,687 | ) | $ | 4,185,857 | |||||
|
The table below summarizes the average notional value of derivatives held during the period.
Forward Foreign Currency Contracts | Futures Contracts | |||||||
Average notional value | $937,483,291 | $108,464,656 |
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 28, 2019.
NOTE 5–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $32,311.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefitsinclude 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, andTrustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan.Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any atperiod-end, are shown in the Statement of Assets and Liabilities under the payable captionAmount 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. The Fund may not purchase additional securities when any borrowings from banks exceed 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 GAAP. 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 fiscalyear-end.
26 | Invesco Equity and Income Fund |
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of August 31, 2018.
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2019 was $8,854,538,744 and $9,469,435,762, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reportingperiod-end.
Unrealized Appreciation (Depreciation) of Investments on a TaxBasis
| ||||
Aggregate unrealized appreciation of investments | $ | 2,205,708,423 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (441,477,906 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 1,764,230,517 | ||
| ||||
Cost of investments for tax purposes is $11,723,972,150. |
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended February 28, 2019(a) | Year ended August 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 106,227,718 | $ | 1,048,806,107 | 88,715,954 | $ | 979,887,250 | ||||||||||
| ||||||||||||||||
Class B(b) | – | – | 13,659 | 152,215 | ||||||||||||
| ||||||||||||||||
Class C | 6,017,287 | 59,934,062 | 14,162,681 | 153,710,123 | ||||||||||||
| ||||||||||||||||
Class R | 1,131,757 | 11,640,140 | 2,793,491 | 30,995,546 | ||||||||||||
| ||||||||||||||||
Class Y | 12,540,114 | 128,201,145 | 29,531,802 | 326,511,194 | ||||||||||||
| ||||||||||||||||
Class R5 | 3,282,254 | 32,261,246 | 15,139,415 | 167,817,844 | ||||||||||||
| ||||||||||||||||
Class R6 | 14,257,104 | 144,046,370 | 45,463,679 | 503,264,008 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 65,821,159 | 622,229,541 | 57,817,563 | 629,395,051 | ||||||||||||
| ||||||||||||||||
Class B(b) | – | – | 399,451 | 4,248,025 | ||||||||||||
| ||||||||||||||||
Class C | 8,739,133 | 80,715,271 | 7,945,545 | 84,929,671 | ||||||||||||
| ||||||||||||||||
Class R | 1,292,067 | 12,281,608 | 1,222,956 | 13,387,873 | ||||||||||||
| ||||||||||||||||
Class Y | 6,987,609 | 66,114,844 | 6,438,247 | 70,032,993 | ||||||||||||
| ||||||||||||||||
Class R5 | 3,399,534 | 32,196,037 | 3,013,420 | 32,773,490 | ||||||||||||
| ||||||||||||||||
Class R6 | 8,610,355 | 81,453,898 | 6,094,703 | 66,269,720 | ||||||||||||
| ||||||||||||||||
Conversion of Class B shares to Class A shares:(c) | ||||||||||||||||
Class A | – | – | 6,009,369 | 69,408,211 | ||||||||||||
| ||||||||||||||||
Class B | – | – | (6,168,664 | ) | (69,408,211 | ) | ||||||||||
|
27 | Invesco Equity and Income Fund |
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended February 28, 2019(a) | Year ended August 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (79,893,315 | ) | (806,267,914 | ) | (157,400,342 | ) | (1,739,824,088 | ) | ||||||||
| ||||||||||||||||
Class B(b) | - | - | (2,995,990 | ) | (32,934,039 | ) | ||||||||||
| ||||||||||||||||
Class C | (80,994,225 | ) | (775,610,830 | ) | (35,044,976 | ) | (379,730,637 | ) | ||||||||
| ||||||||||||||||
Class R | (3,608,362 | ) | (36,750,709 | ) | (5,269,679 | ) | (58,619,562 | ) | ||||||||
| ||||||||||||||||
Class Y | (23,166,173 | ) | (232,008,915 | ) | (38,217,171 | ) | (423,509,235 | ) | ||||||||
| ||||||||||||||||
Class R5 | (5,234,693 | ) | (53,847,715 | ) | (15,330,385 | ) | (169,037,967 | ) | ||||||||
| ||||||||||||||||
Class R6 | (11,951,269 | ) | (120,292,548 | ) | (21,009,915 | ) | (231,586,008 | ) | ||||||||
| ||||||||||||||||
Net increase in share activity | 33,458,054 | $ | 295,101,638 | 3,324,813 | $ | 28,133,467 | ||||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 41% 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) | Class B shares activity for the period September 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
NOTE 11–Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income to average net assets | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||
Class A |
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Six months ended 02/28/19 | $11.10 | $0.10 | $(0.48 | ) | $(0.38 | ) | $(0.14 | ) | $(0.60 | ) | $(0.74 | ) | $9.98 | (3.08 | )% | $10,041,455 | 0.77 | %(d) | 0.78 | %(d) | 1.88 | %(d) | 68% | |||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.96 | 0.17 | 0.70 | 0.87 | (0.22 | ) | (0.51 | ) | (0.73 | ) | 11.10 | 8.21 | 10,151,828 | 0.77 | 0.78 | 1.55 | 129 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 10.22 | 0.19 | 1.02 | 1.21 | (0.18 | ) | (0.29 | ) | (0.47 | ) | 10.96 | 12.04 | 10,072,836 | 0.79 | 0.80 | 1.79 | 94 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 10.01 | 0.15 | 0.55 | 0.70 | (0.22 | ) | (0.27 | ) | (0.49 | ) | 10.22 | 7.43 | 10,054,983 | 0.79 | 0.80 | 1.57 | 93 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 11.42 | 0.15 | (0.33 | ) | (0.18 | ) | (0.28 | ) | (0.95 | ) | (1.23 | ) | 10.01 | (1.65 | ) | 9,879,022 | 0.79 | 0.80 | 1.38 | 69 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 10.43 | 0.22 | (e) | 1.56 | 1.78 | (0.20 | ) | (0.59 | ) | (0.79 | ) | 11.42 | 17.86 | 10,181,796 | 0.79 | 0.80 | 1.99 | (e) | 60 | |||||||||||||||||||||||||||||||||||||
Class C |
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Six months ended 02/28/19 | 10.89 | 0.06 | (0.47 | ) | (0.41 | ) | (0.10 | ) | (0.60 | ) | (0.70 | ) | 9.78 | (3.44 | ) | 643,049 | 1.50 | (d) | 1.51 | (d) | 1.15 | (d) | 68 | |||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.76 | 0.09 | 0.69 | 0.78 | (0.14 | ) | (0.51 | ) | (0.65 | ) | 10.89 | 7.43 | (f) | 1,437,488 | 1.51 | (f) | 1.52 | (f) | 0.81 | (f) | 129 | |||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 10.04 | 0.11 | 1.00 | 1.11 | (0.10 | ) | (0.29 | ) | (0.39 | ) | 10.76 | 11.21 | 1,559,156 | 1.54 | 1.55 | 1.04 | 94 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 9.83 | 0.08 | 0.55 | 0.63 | (0.15 | ) | (0.27 | ) | (0.42 | ) | 10.04 | 6.71 | (f) | 1,636,583 | 1.52 | (f) | 1.53 | (f) | 0.84 | (f) | 93 | |||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 11.24 | 0.07 | (0.33 | ) | (0.26 | ) | (0.20 | ) | (0.95 | ) | (1.15 | ) | 9.83 | (2.48 | ) | 1,667,769 | 1.54 | 1.55 | 0.63 | 69 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 10.27 | 0.13 | (e) | 1.55 | 1.68 | (0.12 | ) | (0.59 | ) | (0.71 | ) | 11.24 | 17.03 | 1,624,965 | 1.54 | 1.55 | 1.24 | (e) | 60 | |||||||||||||||||||||||||||||||||||||
Class R |
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Six months ended 02/28/19 | 11.16 | 0.08 | (0.49 | ) | (0.41 | ) | (0.12 | ) | (0.60 | ) | (0.72 | ) | 10.03 | (3.28 | ) | 170,610 | 1.02 | (d) | 1.03 | (d) | 1.63 | (d) | 68 | |||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 11.01 | 0.14 | 0.72 | 0.86 | (0.20 | ) | (0.51 | ) | (0.71 | ) | 11.16 | 8.00 | 203,003 | 1.02 | 1.03 | 1.30 | 129 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 10.27 | 0.17 | 1.02 | 1.19 | (0.16 | ) | (0.29 | ) | (0.45 | ) | 11.01 | 11.71 | 214,107 | 1.04 | 1.05 | 1.54 | 94 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 10.05 | 0.13 | 0.56 | 0.69 | (0.20 | ) | (0.27 | ) | (0.47 | ) | 10.27 | 7.24 | 216,293 | 1.04 | 1.05 | 1.32 | 93 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 11.47 | 0.13 | (0.34 | ) | (0.21 | ) | (0.26 | ) | (0.95 | ) | (1.21 | ) | 10.05 | (1.98 | ) | 221,987 | 1.04 | 1.05 | 1.13 | 69 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 10.47 | 0.19 | (e) | 1.58 | 1.77 | (0.18 | ) | (0.59 | ) | (0.77 | ) | 11.47 | 17.60 | 232,455 | 1.04 | 1.05 | 1.74 | (e) | 60 | |||||||||||||||||||||||||||||||||||||
Class Y |
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Six months ended 02/28/19 | 11.11 | 0.11 | (0.49 | ) | (0.38 | ) | (0.15 | ) | (0.60 | ) | (0.75 | ) | 9.98 | (3.04 | ) | 1,035,661 | 0.52 | (d) | 0.53 | (d) | 2.13 | (d) | 68 | |||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.96 | 0.20 | 0.71 | 0.91 | (0.25 | ) | (0.51 | ) | (0.76 | ) | 11.11 | 8.58 | 1,192,995 | 0.52 | 0.53 | 1.80 | 129 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 10.22 | 0.22 | 1.01 | 1.23 | (0.20 | ) | (0.29 | ) | (0.49 | ) | 10.96 | 12.32 | 1,202,149 | 0.54 | 0.55 | 2.04 | 94 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 10.01 | 0.18 | 0.55 | 0.73 | (0.25 | ) | (0.27 | ) | (0.52 | ) | 10.22 | 7.70 | 819,708 | 0.54 | 0.55 | 1.82 | 93 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 11.43 | 0.17 | (0.33 | ) | (0.16 | ) | (0.31 | ) | (0.95 | ) | (1.26 | ) | 10.01 | (1.49 | ) | 784,238 | 0.54 | 0.55 | 1.63 | 69 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 10.43 | 0.24 | (e) | 1.58 | 1.82 | (0.23 | ) | (0.59 | ) | (0.82 | ) | 11.43 | 18.25 | 719,931 | 0.54 | 0.55 | 2.24 | (e) | 60 | |||||||||||||||||||||||||||||||||||||
Class R5 |
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Six months ended 02/28/19 | 11.11 | 0.11 | (0.49 | ) | (0.38 | ) | (0.15 | ) | (0.60 | ) | (0.75 | ) | 9.98 | (3.02 | ) | 459,094 | 0.46 | (d) | 0.47 | (d) | 2.19 | (d) | 68 | |||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.96 | 0.20 | 0.72 | 0.92 | (0.26 | ) | (0.51 | ) | (0.77 | ) | 11.11 | 8.64 | 494,838 | 0.47 | 0.48 | 1.85 | 129 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 10.23 | 0.22 | 1.01 | 1.23 | (0.21 | ) | (0.29 | ) | (0.50 | ) | 10.96 | 12.28 | 457,500 | 0.48 | 0.49 | 2.10 | 94 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 10.02 | 0.18 | 0.56 | 0.74 | (0.26 | ) | (0.27 | ) | (0.53 | ) | 10.23 | 7.78 | 438,538 | 0.47 | 0.48 | 1.89 | 93 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 11.43 | 0.18 | (0.32 | ) | (0.14 | ) | (0.32 | ) | (0.95 | ) | (1.27 | ) | 10.02 | (1.32 | ) | 411,579 | 0.47 | 0.48 | 1.70 | 69 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 10.43 | 0.25 | (e) | 1.58 | 1.83 | (0.24 | ) | (0.59 | ) | (0.83 | ) | 11.43 | 18.33 | 402,366 | 0.48 | 0.49 | 2.30 | (e) | 60 |
28 | Invesco Equity and Income Fund |
Net asset value, beginning of period | Net investment income(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee and/or expenses absorbed | Ratio of net investment income to average net assets | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $11.10 | $0.12 | $ | (0.48) | $ | (0.36) | $ | (0.16) | $ | (0.60) | $ | (0.76) | | $ 9.98 | | (2.88 | )% | $1,181,262 | 0.37 | %(d) | 0.38 | %(d) | 2.28 | %(d) | 68 | % | ||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.96 | 0.21 | 0.71 | 0.92 | (0.27 | ) | (0.51 | ) | (0.78 | ) | 11.10 | 8.64 | 1,193,501 | 0.38 | 0.39 | 1.94 | 129 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 10.22 | 0.24 | 1.01 | 1.25 | (0.22 | ) | (0.29 | ) | (0.51 | ) | 10.96 | 12.50 | 843,229 | 0.38 | 0.39 | 2.20 | 94 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 10.01 | 0.19 | 0.56 | 0.75 | (0.27 | ) | (0.27 | ) | (0.54 | ) | 10.22 | 7.89 | 283,631 | 0.37 | 0.38 | 1.99 | 93 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 11.43 | 0.19 | (0.33 | ) | (0.14 | ) | (0.33 | ) | (0.95 | ) | (1.28 | ) | 10.01 | (1.33 | ) | 191,328 | 0.37 | 0.38 | 1.80 | 69 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 10.43 | 0.26 | (e) | 1.58 | 1.84 | (0.25 | ) | (0.59 | ) | (0.84 | ) | 11.43 | 18.44 | 149,346 | 0.39 | 0.40 | 2.39 | (e) | 60 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $9,593,996, $1,201,229, $181,250, $1,091,062, $461,398 and $1,152,950 and for Class A, Class C, Class R, Class Y, Class R5 and Class R6shares, respectively. |
(e) | Net investment income per share and the ratio of net investment income to average net assets includes significant dividends received during the period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.16 and 1.47%, $0.07 and 0.72%, $0.13 and 1.22%, $0.18 and 1.72%, $0.19 and 1.78% and $0.20 and 1.87% for Class A, Class C, Class R, Class Y, Class R5 and Class R6shares, respectively. |
(f) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets, for Class C shares, reflect actual12b-1 fees of 0.99% and 0.98% for the years ended August 31, 2018 and August 31, 2016, respectively. |
29 | Invesco 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, 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, 2018 through February 28, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
ACTUAL | HYPOTHETICAL (5% annual return before | |||||||||||||||||||||||||||||
Beginning Account Value (09/01/18) |
Ending Account Value (02/28/19)1 |
Expenses Paid During Period2 |
Ending Account Value (02/28/19) |
Expenses Paid During Period2 |
Annualized Expense Ratio | |||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 969.20 | $ | 3.76 | $ | 1,020.98 | $ | 3.86 | 0.77 | % | ||||||||||||||||||
Class C | 1,000.00 | 965.60 | 7.31 | 1,017.36 | 7.50 | 1.50 | ||||||||||||||||||||||||
Class R | 1,000.00 | 967.20 | 4.98 | 1,019.74 | 5.11 | 1.02 | ||||||||||||||||||||||||
Class Y | 1,000.00 | 969.60 | 2.54 | 1,022.22 | 2.61 | 0.52 | ||||||||||||||||||||||||
Class R5 | 1,000.00 | 969.80 | 2.25 | 1,022.51 | 2.31 | 0.46 | ||||||||||||||||||||||||
Class R6 | 1,000.00 | 971.20 | 1.81 | 1,022.96 | 1.86 | 0.37 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2018 through February 28, 2019, 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 181/365 to reflect the most recent fiscal half year. |
30 | Invesco Equity and Income Fund |
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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 FormN-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s FormsN-Q (or any successor Form) on the SEC website at sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines.
The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd. |
SEC file numbers: 811-09913 and 333-36074 | Invesco Distributors, Inc. | VK-EQI-SAR-1 | 04222019 0800 |
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![]() | Semiannual Report to Shareholders
| February 28, 2019
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Invesco Floating Rate Fund | ||||
Nasdaq: A: AFRAX ∎ C: AFRCX ∎ R: AFRRX ∎ Y: AFRYX ∎ R5: AFRIX ∎ R6: AFRFX |
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2 | Fund Performance | �� | ||||
4 | Letters to Shareholders | |||||
5 | Schedule of Investments | |||||
27 | Financial Statements | |||||
31 | Notes to Financial Statements | |||||
39 | Financial Highlights | |||||
41 | Fund Expenses |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800 959 4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most currentmonth-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
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Fund vs. Indexes |
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Cumulative total returns, 8/31/18 to 2/28/19, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) orfront-end sales charges, which would have reduced performance. |
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Class A Shares | 0.86 | % | ||
Class C Shares | 0.74 | |||
Class R Shares | 0.74 | |||
Class Y Shares | 0.99 | |||
Class R5 Shares | 0.88 | |||
Class R6 Shares | 1.02 | |||
Bloomberg Barclays U.S. Aggregate Bond Indexq(Broad Market Index) | 1.99 | |||
Credit Suisse Leveraged Loan Index∎(Style-Specific Index) | 1.39 | |||
Lipper Loan Participation Funds Classification Average¨(Peer Group) | 0.85 | |||
Source(s):qFactset Research Systems Inc.;∎Bloomberg L.P.;¨Lipper Inc. | ||||
TheBloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index considered representative of the US investment grade, fixed-rate bond market. |
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TheCredit Suisse Leveraged Loan Index represents tradable, senior-secured, US dollar-denominatednon-investment grade loans. |
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TheLipper Loan Participation Funds Classification Average represents an average of all of the funds in the Lipper Loan Participation Funds classification. |
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The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes. |
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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.
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For more information about your Fund |
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us.Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. |
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends. |
2 | Invesco Floating Rate Fund |
Average Annual Total Returns |
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As of 2/28/19, including maximum applicable sales charges |
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Class A Shares |
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Inception (5/1/97) | 3.99 | % | ||
10 Years | 7.35 | |||
5 Years | 2.65 | |||
1 Year | 0.18 | |||
Class C Shares* | ||||
Inception (3/31/00) | 3.61 | % | ||
10 Years | 7.09 | |||
5 Years | 2.64 | |||
1 Year | 1.31 | |||
Class R Shares | ||||
Inception (4/13/06) | 3.39 | % | ||
10 Years | 7.34 | |||
5 Years | 2.88 | |||
1 Year | 2.43 | |||
Class Y Shares | ||||
Inception (10/3/08) | 5.39 | % | ||
10 Years | 7.88 | |||
5 Years | 3.42 | |||
1 Year | 2.94 | |||
Class R5 Shares | ||||
Inception (4/13/06) | 3.94 | % | ||
10 Years | 7.92 | |||
5 Years | 3.40 | |||
1 Year | 2.97 | |||
Class R6 Shares | ||||
10 Years | 7.85 | % | ||
5 Years | 3.47 | |||
1Year | 3.03 | |||
* Effective January 26, 2019, Class C share performance includes the conversion to A shares after 10 years. |
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Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recentmonth-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.
Average Annual Total Returns |
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As of 12/31/18, the most recent calendar quarter end, including maximum applicable sales charges |
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Class A Shares | ||||
Inception (5/1/97) | 3.83 | % | ||
10 Years | 7.83 | |||
5 Years | 1.96 | |||
1 Year | -2.65 | |||
Class C Shares | ||||
Inception (3/31/00) | 3.18 | % | ||
10 Years | 7.55 | |||
5 Years | 1.92 | |||
1 Year | -1.81 | |||
Class R Shares | ||||
Inception (4/13/06) | 3.12 | % | ||
10 Years | 7.83 | |||
5 Years | 2.19 | |||
1 Year | -0.44 | |||
Class Y Shares | ||||
Inception (10/3/08) | 5.07 | % | ||
10 Years | 8.36 | |||
5 Years | 2.72 | |||
1 Year | 0.04 | |||
Class R5 Shares | ||||
Inception (4/13/06) | 3.67 | % | ||
10 Years | 8.42 | |||
5 Years | 2.71 | |||
1 Year | -0.05 | |||
Class R6 Shares | ||||
10 Years | 8.33 | % | ||
5 Years | 2.79 | |||
1 Year | 0.13 |
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 C, Class R, Class Y, Class R5 and Class R6 shares was 1.08%, 1.58%, 1.33%, 0.83%, 0.82% and 0.74%, 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 C, Class R, Class Y, Class R5 and Class R6 shares was 1.09%, 1.59%, 1.34%, 0.84%, 0.83% and 0.75%, 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, Class R5 and Class R6 shares do not have afront-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2020. See current prospectus for more information. |
3 | Invesco Floating Rate Fund |
Letters to Shareholders
Bruce Crockett | Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time; monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory andsub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper, Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. |
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward. Our website,invesco.com/us, offers a wide range of market insights and investment perspectives. | |
On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246. All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
4 | Invesco Floating Rate Fund |
Schedule of Investments
February 28, 2019
(Unaudited)
Principal | ||||||||||||||||||
Interest | Maturity | Amount | ||||||||||||||||
Rate | Date | (000)(a) | Value | |||||||||||||||
Variable Rate Senior Loan Interests-90.18%(b)(c) | ||||||||||||||||||
Aerospace & Defense-2.26% | ||||||||||||||||||
Consolidated Aerospace Manufacturing, LLC, Term Loan (1 mo. USD LIBOR + 3.75%) | 6.24 | % | 08/11/2022 | $ | 1,797 | $ | 1,794,648 | |||||||||||
DAE Aviation Holdings, Inc., Term Loan (1 mo. USD LIBOR + 3.75%) | 6.24 | % | 07/07/2022 | 649 | 651,048 | |||||||||||||
Greenrock Finance, Inc., Term Loan B (3 mo. USD LIBOR + 3.50%) | 6.31 | % | 06/28/2024 | 3,820 | 3,801,653 | |||||||||||||
IAP Worldwide Services | 8.30 | % | 07/18/2019 | 877 | 876,686 | |||||||||||||
Second Lien Term Loan (3 mo. USD LIBOR + 6.50%) | 9.31 | % | 07/18/2019 | 990 | 983,363 | |||||||||||||
Leidos Innovations Corp., Term Loan B (1 mo. USD LIBOR + 1.75%) | 4.25 | % | 08/22/2025 | 29 | 28,824 | |||||||||||||
Maxar Technologies Ltd. (Canada), Term Loan B (1 mo. USD LIBOR + 2.75%) | 5.25 | % | 10/04/2024 | 6,000 | 5,156,418 | |||||||||||||
Peraton Corp., Term Loan (3 mo. USD LIBOR + 5.25%)(d) | 8.06 | % | 04/29/2024 | 3,353 | 3,277,632 | |||||||||||||
Perspecta, Inc., Term Loan B (1 mo. USD LIBOR + 2.25%) | 4.74 | % | 05/31/2025 | 1,471 | 1,449,317 | |||||||||||||
Space Exploration Technologies Corp., Term Loan (1 mo. USD LIBOR + 4.25%)(d) | 6.73 | % | 11/21/2025 | 3,960 | 3,960,213 | |||||||||||||
TransDigm, Inc. | 4.99 | % | 05/30/2025 | 13,427 | 13,259,629 | |||||||||||||
Term Loan F (1 mo. USD LIBOR + 2.50%) | 4.99 | % | 06/09/2023 | 6,940 | 6,869,944 | |||||||||||||
Term Loan G (1 mo. USD LIBOR + 2.50%) | 4.99 | % | 08/22/2024 | 1,152 | 1,137,997 | |||||||||||||
Vectra Co. | 5.74 | % | 03/08/2025 | 1,489 | 1,431,821 | |||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 7.25%) | 9.75 | % | 03/08/2026 | 989 | 954,021 | |||||||||||||
Wesco Aircraft Hardware Corp., Term Loan B (1 mo. USD LIBOR + 2.50%) | 5.00 | % | 02/28/2021 | 2,705 | 2,667,873 | |||||||||||||
Xebec Global Holdings, LLC, Term Loan (3 mo. USD LIBOR + 5.50%) | 8.28 | % | 02/12/2024 | 1,763 | 1,745,007 | |||||||||||||
50,046,094 | ||||||||||||||||||
Air Transport-0.86% | ||||||||||||||||||
American Airlines, Inc., Term Loan (1 mo. USD LIBOR + 1.75%) | 4.23 | % | 06/27/2025 | 80 | 78,987 | |||||||||||||
Avolon TLB Borrower 1 (US) LLC, Term LoanB-3 (1 mo. USD LIBOR + 2.00%) | 4.48 | % | 01/15/2025 | 12,321 | 12,333,556 | |||||||||||||
eTraveli Group Holding AB (Sweden), Term Loan B(f) | - | 11/29/2024 | EUR | 668 | 761,196 | |||||||||||||
Gol LuxCo S.A. (Luxembourg), Term Loan (3 mo. USD LIBOR + 6.50%) | 6.50 | % | 08/31/2020 | 5,842 | 5,914,674 | |||||||||||||
19,088,413 | ||||||||||||||||||
Automotive-1.89% | ||||||||||||||||||
Allison Transmission, Inc., Term Loan (1 mo. USD LIBOR + 1.75%) | 4.24 | % | 09/23/2022 | 48 | 48,101 | |||||||||||||
American Axle & Manufacturing, Inc., Term Loan B (1 mo. USD LIBOR + 2.25%) | 4.74 | % | 04/06/2024 | 2,030 | 1,994,951 | |||||||||||||
Belron Finance US LLC, Term Loan B (3 mo. USD LIBOR + 2.50%)(d) | 5.19 | % | 11/13/2025 | 473 | 472,993 | |||||||||||||
Dayco Products, LLC, Term Loan (3 mo. USD LIBOR + 4.25%)(d) | 6.88 | % | 05/19/2023 | 1,944 | 1,895,256 | |||||||||||||
Garrett Borrowing LLC (Switzerland) | 2.75 | % | 09/27/2025 | EUR | 374 | 421,244 | ||||||||||||
Term Loan B (3 mo. USD LIBOR + 3.00%) | 5.33 | % | 09/27/2025 | 1,278 | 1,261,458 | |||||||||||||
Mavis Tire Express Services Corp. | 5.74 | % | 03/20/2025 | 2,304 | 2,284,313 | |||||||||||||
Delayed Draw Term Loan(e) | 5.74 | % | 03/20/2025 | 307 | 304,490 | |||||||||||||
Midas Intermediate Holdco II, LLC, Term Loan (3 mo. USD LIBOR + 2.75%) | 5.57 | % | 08/18/2021 | 2,463 | 2,429,067 | |||||||||||||
Navistar Financial Corp., Term Loan B (1 mo. USD LIBOR + 3.75%) | 6.25 | % | 07/31/2025 | 3,298 | 3,302,521 | |||||||||||||
Navistar, Inc., Term Loan B (1 mo. USD LIBOR + 3.50%) | 6.02 | % | 11/06/2024 | 392 | 391,172 | |||||||||||||
Superior Industries International, Inc., Term Loan (1 mo. USD LIBOR + 4.00%)(d) | 6.49 | % | 05/22/2024 | 2,878 | 2,820,428 | |||||||||||||
Tenneco, Inc., Term Loan B (1 mo. USD LIBOR + 2.75%) | 5.24 | % | 10/01/2025 | 7,986 | 7,946,153 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Floating Rate Fund |
Principal | ||||||||||||||||||
Interest | Maturity | Amount | ||||||||||||||||
Rate | Date | (000)(a) | Value | |||||||||||||||
Automotive-(continued) | ||||||||||||||||||
ThermaSys Corp. | 8.80 | % | 10/02/2023 | $ | 334 | $ | 304,055 | |||||||||||
Term Loan (3 mo. USD LIBOR + 6.00%) | 8.80 | % | 01/01/2024 | 1,827 | 1,662,949 | |||||||||||||
TI Group Automotive Systems, L.L.C., Term Loan (1 mo. USD LIBOR + 2.50%) | 4.99 | % | 06/30/2025 | 256 | 253,390 | |||||||||||||
Tower Automotive Holdings USA, LLC, Term Loan (1 mo. USD LIBOR + 2.75%) | 5.31 | % | 03/07/2024 | 4,159 | 4,034,235 | |||||||||||||
Transtar Holding Co. | 0.00 | % | 04/10/2022 | 243 | 241,919 | |||||||||||||
First Lien Term Loan (1 mo. USD LIBOR + 4.25%)(d) | 6.75 | % | 04/11/2022 | 2,289 | 2,220,308 | |||||||||||||
PIK Term Loan, 7.75% PIK, 1.00% Cash Rate | 7.75 | % | 04/11/2022 | 779 | 747,367 | |||||||||||||
Wand NewCo 3, Inc., Term Loan(f) | – | 01/24/2026 | 4,801 | 4,820,309 | ||||||||||||||
Winter Park Intermediate, Inc., First Lien Term Loan (1 mo. USD LIBOR + 4.75%)(d) | 7.24 | % | 04/04/2025 | 2,129 | 2,086,171 | |||||||||||||
41,942,850 | ||||||||||||||||||
Beverage & Tobacco-0.40% | ||||||||||||||||||
AI Aqua Merger Sub, Inc. | 5.74 | % | 12/13/2023 | 6,004 | 5,798,887 | |||||||||||||
First Lien Incremental Term Loan (1 mo. USD LIBOR + 3.25%) | 5.75 | % | 12/13/2023 | 1,755 | 1,697,223 | |||||||||||||
Arterra Wines Canada, Inc., First Lien Term LoanB-1 (3 mo. USD LIBOR + 2.75%) | 5.54 | % | 12/15/2023 | 1,454 | 1,453,848 | |||||||||||||
8,949,958 | ||||||||||||||||||
Building & Development-2.40% | ||||||||||||||||||
American Builders & Contractors Supply Co., Inc., Term LoanB-2 (1 mo. USD LIBOR + 2.00%) | 4.49 | % | 10/31/2023 | 5,578 | 5,551,825 | |||||||||||||
Beacon Roofing Supply, Inc., Term Loan B (1 mo. USD LIBOR + 2.25%) | 4.77 | % | 01/02/2025 | 176 | 175,060 | |||||||||||||
Capital Automotive L.P. | 5.00 | % | 03/24/2024 | 8,861 | 8,754,160 | |||||||||||||
Second Lien Term Loan B (1 mo. USD LIBOR + 6.00%) | 8.49 | % | 03/24/2025 | 3,915 | 3,924,684 | |||||||||||||
DiversiTech Holdings, Inc. | 10.31 | % | 06/02/2025 | 232 | 224,829 | |||||||||||||
Term LoanB-1 (3 mo. USD LIBOR + 3.00%) | 5.80 | % | 06/03/2024 | 2,131 | 2,083,398 | |||||||||||||
Financiere Persea (Proxiserve), Term Loan B(f) | – | 02/26/2026 | EUR | 473 | 538,222 | |||||||||||||
Forterra Finance, LLC, Second Lien Term Loan (1 mo. USD LIBOR + 3.00%) | 5.49 | % | 10/25/2023 | 2,712 | 2,530,941 | |||||||||||||
Pisces Midco, Inc., Term Loan (3 mo. USD LIBOR + 3.75%) | 6.55 | % | 04/12/2025 | 2,416 | 2,355,556 | |||||||||||||
Quikrete Holdings, Inc., First Lien Term Loan (1 mo. USD LIBOR + 3.25%) | 5.24 | % | 11/15/2023 | 6,140 | 6,069,868 | |||||||||||||
Re/Max, LLC, Term Loan (1 mo. USD LIBOR + 2.75%) | 5.24 | % | 12/15/2023 | 4,794 | 4,754,613 | |||||||||||||
Realogy Group LLC, Term Loan (1 mo. USD LIBOR + 2.25%) | 4.74 | % | 02/08/2025 | 8,747 | 8,553,711 | |||||||||||||
SRS Distribution, Inc., Term Loan (1 mo. USD LIBOR + 3.25%) | 5.74 | % | 05/23/2025 | 4,805 | 4,723,651 | |||||||||||||
Werner FinCo L.P., Term Loan (3 mo. USD LIBOR + 4.00%) | 6.80 | % | 07/24/2024 | 3,023 | 2,928,214 | |||||||||||||
53,168,732 | ||||||||||||||||||
Business Equipment & Services-9.96% | ||||||||||||||||||
Allied Universal Holdco LLC, First Lien Term Loan (1 mo. USD LIBOR + 3.75%) | 6.24 | % | 07/28/2022 | 5,206 | 5,129,599 | |||||||||||||
Alorica, Inc., Term Loan B (1 mo. USD LIBOR + 3.75%) | 6.24 | % | 06/30/2022 | 547 | 539,618 | |||||||||||||
Altran Technologies (France), Term Loan B (3 mo. USD LIBOR + 2.25%) | 5.04 | % | 03/20/2025 | 996 | 981,731 | |||||||||||||
Asurion LLC | 5.49 | % | 08/04/2022 | 28 | 28,288 | |||||||||||||
Term LoanB-6 (1 mo. USD LIBOR + 3.00%) | 5.49 | % | 11/03/2023 | 18,807 | 18,830,449 | |||||||||||||
Term LoanB-7 (1 mo. USD LIBOR + 3.00%) | 5.49 | % | 11/03/2024 | 880 | 881,587 | |||||||||||||
Second Lien Term LoanB-2 (1 mo. USD LIBOR + 6.50%) | 9.00 | % | 08/04/2025 | 21,640 | 22,055,124 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Floating Rate Fund |
Principal | ||||||||||||||||||
Interest | Maturity | Amount | ||||||||||||||||
Rate | Date | (000)(a) | Value | |||||||||||||||
Business Equipment & Services-(continued) | ||||||||||||||||||
Blackhawk Network Holdings, Inc. | 5.49% | 06/15/2025 | $ | 2,882 | $ | 2,861,941 | ||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 7.00%) | 9.50% | 06/15/2026 | 1,111 | 1,103,368 | ||||||||||||||
Blucora, Inc., Term Loan (1 mo. USD LIBOR + 3.00%)(d) | 5.49% | 05/22/2024 | 1,578 | 1,576,025 | ||||||||||||||
Brand Energy & Infrastructure Services, Inc., Term Loan (3 mo. USD LIBOR + 4.25%) | 6.96% | 06/21/2024 | 4,175 | 4,089,156 | ||||||||||||||
Brightview Landscapes, LLC | 0.00% | 08/15/2023 | 992 | 917,917 | ||||||||||||||
Term Loan (1 mo. USD LIBOR + 2.50%) | 5.00% | 08/15/2025 | 1,273 | 1,273,911 | ||||||||||||||
Camelia Bidco Ltd. (United Kingdom), Term LoanB-1 (3 mo. GBP LIBOR + 4.75%) | 5.66% | 10/14/2024 | GBP | 3,136 | 4,131,900 | |||||||||||||
Cast & Crew Payroll, LLC, First Lien Term Loan(f) | – | 02/07/2026 | 1,904 | 1,914,477 | ||||||||||||||
Checkout Holding Corp., Term Loan (1 mo. USD LIBOR + 7.50%) | 9.99% | 02/15/2023 | 767 | 747,459 | ||||||||||||||
CRCI Longhorn Holdings, Inc. | 6.02% | 08/08/2025 | 407 | 400,871 | ||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 7.25%)(d) | 9.77% | 08/08/2026 | 218 | 217,033 | ||||||||||||||
Crossmark Holdings, Inc. | 10.00% | 12/20/2019 | 507 | 506,823 | ||||||||||||||
Second Lien Term Loan (3 mo. USD LIBOR + 7.50%) | 10.31% | 12/21/2020 | 576 | 7,566 | ||||||||||||||
First Lien Term Loan (3 mo. USD LIBOR + 3.50%) | 6.30% | 12/20/2019 | 4,425 | 1,227,979 | ||||||||||||||
Dream Secured Bondco AB, Term Loan B1F (3 mo. EURIBOR + 3.50%) | 3.50% | 10/21/2022 | EUR | 849 | 964,337 | |||||||||||||
Dun & Bradstreet Corp. (The), Term Loan(f) | – | 02/06/2026 | 6,780 | 6,797,573 | ||||||||||||||
First Data Corp. | 4.49% | 07/08/2022 | 9,296 | 9,293,902 | ||||||||||||||
Term Loan A (1 mo. USD LIBOR + 1.50%) | 3.99% | 10/26/2023 | 18,977 | 18,909,396 | ||||||||||||||
Term Loan (1 mo. USD LIBOR + 2.00%) | 4.49% | 04/26/2024 | 1,884 | 1,883,524 | ||||||||||||||
Gartner, Inc., Term Loan A (1 mo. USD LIBOR + 1.50%)(d) | 3.99% | 03/20/2022 | 433 | 433,121 | ||||||||||||||
Genesys Telecom Holdings, U.S., Inc., Term LoanB-3 (1 mo. USD LIBOR + 3.25%) | 5.74% | 12/01/2023 | 655 | 648,669 | ||||||||||||||
GI Revelation Acquisition LLC | 7.50% | 04/16/2025 | 3,053 | 3,034,324 | ||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 9.00%) | 11.50% | 04/16/2026 | 1,073 | 1,030,478 | ||||||||||||||
Global Payments, Inc. | 4.24% | 04/21/2023 | 1,307 | 1,300,827 | ||||||||||||||
Term LoanB-4 (1 mo. USD LIBOR + 1.75%) | 4.24% | 10/17/2025 | 3,540 | 3,518,738 | ||||||||||||||
GlobalLogic Holdings, Inc. | 0.00% | 08/01/2025 | 87 | 87,208 | ||||||||||||||
Term Loan (1 mo. USD LIBOR + 3.25%) | 5.74% | 08/01/2025 | 610 | 608,930 | ||||||||||||||
Hillman Group, Inc., Term Loan (3 mo. USD LIBOR + 4.00%) | 6.80% | 05/30/2025 | 4,820 | 4,677,564 | ||||||||||||||
INDIGOCYAN Midco Ltd., Term Loan B (3 mo. GBP LIBOR + 4.75%)(d) | 5.60% | 06/23/2024 | GBP | 1,337 | 1,775,096 | |||||||||||||
ION Trading Technologies S.a.r.l., Term Loan (2 mo. USD LIBOR + 4.00%) | 6.64% | 11/21/2024 | 1,775 | 1,690,353 | ||||||||||||||
Iron Mountain, Inc., Term Loan B (1 mo. USD LIBOR + 1.75%) | 4.24% | 01/02/2026 | 3,213 | 3,156,828 | ||||||||||||||
KAR Auction Services, Inc., Term LoanB-5 (3 mo. USD LIBOR + 2.50%) | 5.31% | 03/09/2023 | 4,618 | 4,618,431 | ||||||||||||||
Karman Buyer Corp., First Lien Term Loan (1 mo. USD LIBOR + 3.25%) | 5.74% | 07/23/2021 | 10,164 | 8,954,245 | ||||||||||||||
KBR, Inc., Term Loan B (1 mo. USD LIBOR + 3.75%) | 6.24% | 04/25/2025 | 5,488 | 5,507,000 | ||||||||||||||
LegalZoom.com, Inc., Term Loan (1 mo. USD LIBOR + 4.50%) | 6.99% | 11/21/2024 | 1,552 | 1,563,629 | ||||||||||||||
Monitronics International, Inc., Term LoanB-2 (3 mo. USD LIBOR + 5.50%) | 8.31% | 09/30/2022 | 9,077 | 7,983,246 | ||||||||||||||
On Assignment, Inc., Term Loan B (1 mo. USD LIBOR + 2.00%) | 4.49% | 04/02/2025 | 1,410 | 1,406,928 | ||||||||||||||
Outfront Media Capital LLC, Term Loan (1 mo. USD LIBOR + 2.00%) | 4.52% | 03/18/2024 | 75 | 75,247 | ||||||||||||||
Prime Security Services Borrower, LLC, First Lien Term LoanB-1 (1 mo. USD LIBOR + 2.75%) | 5.24% | 05/02/2022 | 7,277 | 7,268,154 | ||||||||||||||
Prometric Holdings, Inc., Term Loan (1 mo. USD LIBOR + 3.00%) | 5.50% | 01/29/2025 | 143 | 142,211 | ||||||||||||||
Red Ventures, LLC (New Imagitas, Inc.), Term LoanB-1 (1 mo. USD LIBOR + 3.00%) | 5.49% | 11/08/2024 | 194 | 194,071 | ||||||||||||||
Refinitiv US Holdings, Inc., Term Loan B (1 mo. USD LIBOR + 3.75%) | 6.24% | 10/01/2025 | 18,509 | 18,256,615 | ||||||||||||||
ServiceMaster Co. (The), Term Loan C (1 mo. USD LIBOR + 2.50%) | 4.99% | 11/08/2023 | 1,047 | 1,045,267 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Floating Rate Fund |
Principal | ||||||||||||||||||
Interest | Maturity | Amount | ||||||||||||||||
Rate | Date | (000)(a) | Value | |||||||||||||||
Business Equipment & Services-(continued) | ||||||||||||||||||
Spin Holdco, Inc., First Lien Term LoanB-1 (3 mo. USD LIBOR + 3.25%) | 6.03% | 11/14/2022 | $ | 15,696 | $ | 15,573,718 | ||||||||||||
Tempo Acquisition LLC, Term Loan (1 mo. USD LIBOR + 3.00%) | 5.49% | 05/01/2024 | 16 | 16,259 | ||||||||||||||
TNS, Inc., First Lien Term Loan (1 mo. USD LIBOR + 4.00%) | 6.50% | 02/14/2020 | 430 | 423,424 | ||||||||||||||
Ventia Deco LLC, Term Loan B (3 mo. USD LIBOR + 4.00%)(d) | 6.30% | 05/21/2022 | 2,928 | 2,934,990 | ||||||||||||||
Wash MultiFamily Acquisition, Inc. | 5.74% | 05/16/2022 | 5,295 | 5,110,147 | ||||||||||||||
First Lien Term Loan (1 mo. USD LIBOR + 3.25%) | 5.74% | 05/16/2022 | 875 | 844,220 | ||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 7.00%) | 9.50% | 05/12/2023 | 222 | 215,207 | ||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 7.00%) | 9.50% | 05/14/2023 | 39 | 37,693 | ||||||||||||||
West Corp. | 6.63% | 10/10/2024 | 6,002 | 5,702,782 | ||||||||||||||
Term LoanB-1 (1 mo. USD LIBOR + 3.50%) | 6.13% | 10/10/2024 | 2,770 | 2,606,663 | ||||||||||||||
WEX, Inc., Term LoanB-2 (1 mo. USD LIBOR + 2.25%) | 4.74% | 06/30/2023 | 1,083 | 1,079,725 | ||||||||||||||
220,793,562 | ||||||||||||||||||
Cable & Satellite Television-5.76% | ||||||||||||||||||
Altice Financing S.A. (Luxembourg) | 5.24% | 07/15/2025 | 1,857 | 1,802,068 | ||||||||||||||
Term Loan (1 mo. USD LIBOR + 2.75%) | 5.23% | 01/31/2026 | 3,182 | 3,098,802 | ||||||||||||||
Altice France S.A. (France) | 6.17% | 01/31/2026 | 13,160 | 12,777,685 | ||||||||||||||
Term LoanB-13 (1 mo. USD LIBOR + 4.00%) | 6.49% | 08/14/2026 | 11,943 | 11,650,098 | ||||||||||||||
Atlantic Broadband Finance, LLC, Term Loan B (1 mo. USD LIBOR + 2.38%) | 4.87% | 01/03/2025 | 7,927 | 7,865,927 | ||||||||||||||
Charter Communications Operating, LLC, Term Loan B (1 mo. USD LIBOR + 2.00%) | 4.50% | 04/30/2025 | 821 | 820,327 | ||||||||||||||
CSC Holdings, LLC | 4.74% | 07/17/2025 | 19,390 | 19,197,924 | ||||||||||||||
Term Loan (1 mo. USD LIBOR + 2.25%) | 4.74% | 01/15/2026 | 7,621 | 7,545,033 | ||||||||||||||
Term Loan (1 mo. USD LIBOR + 2.50%) | 4.99% | 01/25/2026 | 5,565 | 5,548,846 | ||||||||||||||
Mediacom Illinois LLC, Term Loan N (1 wk. USD LIBOR + 1.75%) | 4.17% | 02/15/2024 | 2,523 | 2,502,596 | ||||||||||||||
TDC A/S, Term Loan (1 mo. EURIBOR + 2.75%) | 2.75% | 06/04/2025 | EUR | 516 | 588,090 | |||||||||||||
Telenet Financing USD LLC, Term Loan AN (1 mo. USD LIBOR + 2.25%) | 4.74% | 08/15/2026 | 11,205 | 11,072,374 | ||||||||||||||
UPC Financing Partnership, Term Loan AR (1 mo. USD LIBOR + 2.50%) | 4.99% | 01/15/2026 | 18,084 | 18,080,247 | ||||||||||||||
Virgin Media Bristol LLC, Term Loan K (1 mo. USD LIBOR + 2.50%) | 4.99% | 01/15/2026 | 16,800 | 16,709,248 | ||||||||||||||
Ziggo Secured Finance Partnership, Term Loan E (1 mo. USD LIBOR + 2.50%) | 4.99% | 04/15/2025 | 8,507 | 8,416,966 | ||||||||||||||
127,676,231 | ||||||||||||||||||
Chemicals & Plastics-3.66% | ||||||||||||||||||
Alpha US Bidco, Inc., Term LoanB-1 (3 mo. USD LIBOR + 3.00%) | 5.80% | 01/31/2024 | 470 | 464,046 | ||||||||||||||
Ashland LLC, Term Loan B (1 mo. USD LIBOR + 1.75%) | 4.24% | 05/17/2024 | 669 | 668,562 | ||||||||||||||
Avantor, Inc., Term LoanB-1 (3 mo. EURIBOR + 3.75%) | 3.75% | 11/21/2024 | EUR | 5,121 | 5,846,123 | |||||||||||||
BCPE Max Dutch Bidco BV, Term Loan B (3 mo. EURIBOR + 4.75%) | 4.75% | 10/01/2025 | EUR | 750 | 861,526 | |||||||||||||
Cabot Microelectronics Corp., Term Loan (1 mo. USD LIBOR + 2.25%) | 4.75% | 11/14/2025 | 3,902 | 3,896,658 | ||||||||||||||
Colouroz Investment LLC | 5.78% | 09/07/2021 | 3,167 | 2,975,313 | ||||||||||||||
Term Loan C (3 mo. USD LIBOR + 3.00%) | 5.78% | 09/07/2021 | 523 | 491,854 | ||||||||||||||
Diamond (BC) B.V. (Netherlands), Term Loan B (2 mo. USD LIBOR + 3.00%) | 5.75% | 09/06/2024 | 2,497 | 2,416,165 | ||||||||||||||
Encapsys, LLC | 5.74% | 11/07/2024 | 641 | 635,046 | ||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 7.50%)(d) | 10.00% | 11/07/2025 | 330 | 316,920 | ||||||||||||||
Ferro Corp. | 5.05% | 02/14/2024 | 67 | 66,494 | ||||||||||||||
Term LoanB-3 (3 mo. USD LIBOR + 2.25%) | 5.05% | 02/14/2024 | 66 | 65,080 | ||||||||||||||
Gemini HDPE LLC, Term Loan (3 mo. USD LIBOR + 2.50%) | 5.25% | 08/07/2024 | 2,172 | 2,156,110 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Floating Rate Fund |
Principal | ||||||||||||||||||||
Interest | Maturity | Amount | ||||||||||||||||||
Rate | Date | (000)(a) | Value | |||||||||||||||||
Chemicals & Plastics-(continued) | ||||||||||||||||||||
H.B. Fuller Co., Term Loan (1 mo. USD LIBOR + 2.00%) | 4.48% | 10/20/2024 | $ | 2,308 | $ | 2,289,229 | ||||||||||||||
HII Holding Corp. | 5.74% | 12/20/2019 | 1,952 | 1,952,264 | ||||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 8.50%)(d) | 11.00% | 12/21/2020 | 2,525 | 2,524,595 | ||||||||||||||||
Ignition Midco B.V. (Netherlands), Term Loan B (6mo. EURIBOR + 4.75%) | 4.75% | 07/02/2025 | EUR | 1,618 | 1,850,952 | |||||||||||||||
Ineos US Finance LLC, Term Loan (1 mo. USD LIBOR + 2.00%) | 4.49% | 03/31/2024 | 2,968 | 2,934,927 | ||||||||||||||||
Invictus US NewCo LLC | 5.58% | 03/28/2025 | 2,016 | 2,013,811 | ||||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 6.75%)(d) | 9.24% | 03/30/2026 | 1,074 | 1,071,592 | ||||||||||||||||
KPEX Holdings, Inc. | 5.74% | 01/31/2025 | 972 | 939,348 | ||||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 7.00%) | 9.50% | 01/31/2026 | 419 | 404,279 | ||||||||||||||||
Messer Industries USA, Inc., Term LoanB-1 | 0.00% | 10/01/2025 | 8,553 | 8,511,996 | ||||||||||||||||
Natgasoline LLC, Term Loan (3 mo. USD LIBOR + 3.50%)(d) | 6.25% | 11/14/2025 | 1,794 | 1,798,221 | ||||||||||||||||
Oxea Corp., Term LoanB-2 (1 mo. USD LIBOR + 3.50%) | 6.06% | 10/14/2024 | 373 | 372,766 | ||||||||||||||||
PQ Corp., Term LoanB-1 (3 mo. USD LIBOR + 2.50%) | 5.25% | 02/05/2025 | 919 | 914,797 | ||||||||||||||||
Proampac PG Borrower LLC, First Lien Term Loan (3 mo. USD LIBOR + 3.50%) | 6.14% | 11/18/2023 | 2,746 | 2,704,617 | ||||||||||||||||
Starfruit US Holdco LLC, Term Loan (1 mo. USD LIBOR + 3.25%) | 5.77% | 10/01/2025 | 22,296 | 22,212,010 | ||||||||||||||||
Tata Chemicals North America, Inc., Term Loan (3 mo. USD LIBOR + 2.75%) | 5.56% | 08/07/2020 | 1,804 | 1,799,407 | ||||||||||||||||
Trinseo Materials Finance, Inc., Term Loan (1 mo. USD LIBOR + 2.00%) | 4.49% | 09/06/2024 | 1,080 | 1,068,938 | ||||||||||||||||
Tronox Finance LLC | 5.49% | 09/23/2024 | 1,324 | 1,322,472 | ||||||||||||||||
Term Loan (1 mo. USD LIBOR + 3.00%) | 5.49% | 09/23/2024 | 574 | 573,071 | ||||||||||||||||
Univar, Inc. | – | 07/01/2024 | EUR | 660 | 755,529 | |||||||||||||||
Term Loan(f) | – | 07/01/2024 | 871 | 871,404 | ||||||||||||||||
Venator Finance S.a.r.l., Term Loan (1 mo. USD LIBOR + 3.00%) | 5.49% | 08/08/2024 | 665 | 657,691 | ||||||||||||||||
Versum Materials, Term Loan (3 mo. USD LIBOR + 2.00%) | 4.80% | 09/29/2023 | 744 | 745,017 | ||||||||||||||||
81,148,830 | ||||||||||||||||||||
Clothing & Textiles-0.81% | ||||||||||||||||||||
ABG Intermediate Holdings 2 LLC | 5.99% | 09/26/2024 | 9,325 | 9,220,127 | ||||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 7.75%) | 10.25% | 09/29/2025 | 3,343 | 3,296,775 | ||||||||||||||||
Ascena Retail Group, Inc., Term Loan B (1 mo. USD LIBOR + 4.50%) | 7.00% | 08/21/2022 | 1,411 | 1,299,197 | ||||||||||||||||
International Textile Group, Inc., First Lien Term Loan (1 mo. USD LIBOR + 5.00%) | 7.51% | 05/01/2024 | 1,836 | 1,803,793 | ||||||||||||||||
Oak Parent, Inc., Term Loan (1 mo. USD LIBOR + 4.50%) | 6.99% | 10/26/2023 | 1,992 | 1,887,117 | ||||||||||||||||
Tumi, Inc., Term Loan B (1 mo. USD LIBOR + 1.75%) | 4.24% | 04/25/2025 | 407 | 397,506 | ||||||||||||||||
Varsity Brands Holding Co., Inc., First Lien Term Loan (1 mo. USD LIBOR + 3.50%) | 5.99% | 12/15/2024 | 0 | 184 | ||||||||||||||||
17,904,699 | ||||||||||||||||||||
Conglomerates-0.33% | ||||||||||||||||||||
CTC AcquiCo GmbH (Germany) | 2.75% | 03/07/2025 | EUR | 1,251 | 1,405,497 | |||||||||||||||
Term LoanB-2 (3 mo. USD LIBOR + 3.00%) | 5.63% | 03/07/2025 | 1,636 | 1,615,307 | ||||||||||||||||
Penn Engineering & Manufacturing Corp., Term Loan B (1 mo. USD LIBOR + 2.75%) | 5.25% | 06/27/2024 | 1,866 | 1,855,880 | ||||||||||||||||
Safe Fleet Holdings LLC | 5.52% | 02/01/2025 | 1,102 | 1,077,316 | ||||||||||||||||
First Lien Term Loan (1 mo. USD LIBOR + 3.75%) | 6.27% | 02/03/2025 | 801 | 788,792 | ||||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 6.75%) | 9.27% | 02/02/2026 | 526 | 502,577 | ||||||||||||||||
7,245,369 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Floating Rate Fund |
Principal | ||||||||||||||||||||
Interest | Maturity | Amount | ||||||||||||||||||
Rate | Date | (000)(a) | Value | |||||||||||||||||
Containers & Glass Products-2.41% | ||||||||||||||||||||
Atlas Packaging GmbH (Germany), Term Loan B (6mo. EURIBOR + 4.50%) | 4.50% | 07/31/2025 | EUR | 1,739 | $ | 1,945,715 | ||||||||||||||
Berlin Packaging, LLC | 5.54% | 11/07/2025 | $ | 6,303 | 6,208,294 | |||||||||||||||
Term LoanB-1 (1 mo. USD LIBOR + 3.00%) | 5.51% | 11/07/2025 | 1,963 | 1,914,259 | ||||||||||||||||
Berry Global, Inc. | 4.61% | 10/01/2022 | 437 | 436,324 | ||||||||||||||||
Term Loan R (1 mo. USD LIBOR + 2.00%) | 4.52% | 01/19/2024 | 1,372 | 1,367,613 | ||||||||||||||||
Term Loan (1 mo. USD LIBOR + 1.75%) | 4.27% | 01/06/2021 | 178 | 177,557 | ||||||||||||||||
Term Loan S (1 mo. USD LIBOR + 1.75%) | 4.27% | 02/08/2020 | 67 | 66,448 | ||||||||||||||||
BWAY Holding Co., Term Loan (3 mo. USD LIBOR + 3.25%) | 6.03% | 04/03/2024 | 2,185 | 2,146,387 | ||||||||||||||||
Consolidated Container Company LLC, First Lien Term Loan (1 mo. USD LIBOR + 3.50%) | 5.24% | 05/22/2024 | 1,210 | 1,203,668 | ||||||||||||||||
Crown Americas LLC, Term Loan B (1 mo. USD LIBOR + 2.00%) | 4.49% | 04/03/2025 | 94 | 94,314 | ||||||||||||||||
Duran Group, Term LoanB-2 (3 mo. USD LIBOR + 4.00%)(d) | 6.78% | 03/21/2024 | 9,625 | 9,432,475 | ||||||||||||||||
Flex Acquisition Co., Inc., Incremental Term Loan B (1 mo. USD LIBOR + 3.25%) | 5.76% | 06/29/2025 | 4,708 | 4,645,829 | ||||||||||||||||
Fort Dearborn Holding Co., Inc. | 6.79% | 10/19/2023 | 5,043 | 4,898,229 | ||||||||||||||||
Second Lien Term Loan (3 mo. USD LIBOR + 8.50%) | 11.30% | 10/19/2024 | 393 | 364,871 | ||||||||||||||||
Hoffmaster Group, Inc., Term LoanB-1 (1 mo. USD LIBOR + 4.00%) | 6.49% | 11/21/2023 | 3,731 | 3,728,920 | ||||||||||||||||
Klockner Pentaplast of America, Inc. (Luxembourg) | 4.75% | 06/30/2022 | EUR | 851 | 874,791 | |||||||||||||||
Term Loan (1 mo. USD LIBOR + 4.25%) | 6.74% | 06/30/2022 | 863 | 790,901 | ||||||||||||||||
Libbey Glass, Inc., Term Loan (1 mo. USD LIBOR + 3.00%) | 5.52% | 04/09/2021 | 581 | 548,832 | ||||||||||||||||
Multi-Color Corp., Term Loan B (1 mo. USD LIBOR + 2.00%) | 4.49% | 10/31/2024 | 546 | 545,258 | ||||||||||||||||
Ranpak Corp. | 9.73% | 10/03/2022 | 247 | 246,725 | ||||||||||||||||
Term LoanB-1 (1 mo. USD LIBOR + 3.25%) | 5.74% | 10/01/2021 | 812 | 810,771 | ||||||||||||||||
Refresco Group, N.V. (Netherlands), Term LoanB-3 (3 mo. USD LIBOR + 3.25%)(d) | 5.93% | 03/28/2025 | 1,596 | 1,588,024 | ||||||||||||||||
Reynolds Group Holdings, Inc., Incremental Term Loan (1 mo. USD LIBOR + 2.75%) | 5.24% | 02/05/2023 | 7,283 | 7,262,276 | ||||||||||||||||
Trident TPI Holdings, Inc. | 3.50% | 10/17/2024 | EUR | 449 | 494,861 | |||||||||||||||
Term LoanB-1 (1 mo. USD LIBOR + 3.25%) | 5.74% | 10/17/2024 | 1,572 | 1,536,954 | ||||||||||||||||
53,330,296 | ||||||||||||||||||||
Cosmetics & Toiletries-0.81% | ||||||||||||||||||||
Alphabet Holding Co., Inc., First Lien Term Loan (1 mo. USD LIBOR + 3.50%) | 5.99% | 09/26/2024 | 6,699 | 6,420,702 | ||||||||||||||||
Anastasia Parent, LLC, Term Loan (1 mo. USD LIBOR + 3.75%) | 6.25% | 08/11/2025 | 1,443 | 1,375,573 | ||||||||||||||||
Coty, Inc., Term Loan B (1 mo. USD LIBOR + 2.25%) | 4.76% | 04/05/2025 | 9,644 | 9,439,100 | ||||||||||||||||
Prestige Brands, Inc., Term LoanB-4 (1 mo. USD LIBOR + 2.00%) | 4.49% | 01/26/2024 | 681 | 678,292 | ||||||||||||||||
17,913,667 | ||||||||||||||||||||
Drugs-1.64% | ||||||||||||||||||||
BPA Laboratories | 8.55% | 04/29/2020 | 1,202 | 1,160,089 | ||||||||||||||||
Second Lien Term Loan (3 mo. USD LIBOR + 7.75%)(d) | 10.56% | 04/29/2020 | 1,045 | 972,112 | ||||||||||||||||
Catalent Pharma Solutions, Inc., Term Loan (1 mo. USD LIBOR + 2.25%) | 4.74% | 05/20/2024 | 16 | 16,384 | ||||||||||||||||
Endo LLC, Term Loan (1 mo. USD LIBOR + 4.25%) | 6.75% | 04/29/2024 | 9,273 | 9,302,553 | ||||||||||||||||
Phoenix Guarantor, Inc. | 0.00% | 02/12/2026 | 336 | 333,482 | ||||||||||||||||
Term Loan | 0.00% | 02/12/2026 | 3,694 | 3,668,296 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Floating Rate Fund |
Principal | ||||||||||||||||||||
Interest | Maturity | Amount | ||||||||||||||||||
Rate | Date | (000)(a) | Value | |||||||||||||||||
Drugs-(continued) | ||||||||||||||||||||
Valeant Pharmaceuticals International, Inc. (Canada) | 5.51% | 06/01/2025 | $ | 11,015 | $ | 11,035,106 | ||||||||||||||
Term Loan (1 mo. USD LIBOR + 2.75%) | 5.26% | 11/27/2025 | 10,003 | 9,985,969 | ||||||||||||||||
36,473,991 | ||||||||||||||||||||
Ecological Services & Equipment-1.21% | ||||||||||||||||||||
Advanced Disposal Services, Inc., Term Loan (1 wk. USD LIBOR + 2.25%) | 4.67% | 11/10/2023 | 4,476 | 4,478,958 | ||||||||||||||||
EnergySolutions, LLC, Term Loan (3 mo. USD LIBOR + 3.75%) | 6.55% | 05/11/2025 | 2,051 | 1,819,134 | ||||||||||||||||
GFL Environmental, Inc. (Canada), Incremental Term Loan (1 mo. USD LIBOR + 3.00%) | 5.49% | 05/30/2025 | 15,489 | 15,263,782 | ||||||||||||||||
Patriot Container Corp., Second Lien Term Loan (1 mo. USD LIBOR + 7.75%)(d) | 10.25% | 03/20/2026 | 861 | 830,669 | ||||||||||||||||
Tunnel Hill Partners, L.P., Term Loan B | 5.99% | 02/08/2026 | 1,508 | 1,497,390 | ||||||||||||||||
WCA Waste Systems, Inc., Term Loan (1 mo. USD LIBOR + 2.50%) | 4.99% | 08/12/2023 | 2,922 | 2,886,973 | ||||||||||||||||
26,776,906 | ||||||||||||||||||||
Electronics & Electrical-8.68% | ||||||||||||||||||||
4L Technologies, Inc., Term Loan (1 mo. USD LIBOR + 4.50%) | 6.99% | 05/08/2020 | 6,471 | 6,390,161 | ||||||||||||||||
Applied Systems, Inc., Second Lien Term Loan (1 mo. USD LIBOR + 7.00%) | 9.50% | 09/19/2025 | 162 | 164,509 | ||||||||||||||||
Barracuda Networks, Inc., First Lien Term Loan (1 mo. USD LIBOR + 3.25%) | 5.73% | 02/12/2025 | 183 | 183,080 | ||||||||||||||||
Blackboard, Inc., Term LoanB-4 (3 mo. USD LIBOR + 5.00%) | 7.78% | 06/30/2021 | 84 | 81,005 | ||||||||||||||||
Brave Parent Holdings, Inc., First Lien Term Loan (1 mo. USD LIBOR + 4.00%) | 6.49% | 04/18/2025 | 1,057 | 1,050,199 | ||||||||||||||||
Canyon Valor Cos., Inc., First Lien Term Loan (3 mo. USD LIBOR + 2.75%) | 5.55% | 06/16/2023 | 3,950 | 3,908,487 | ||||||||||||||||
CommScope, Inc. | 4.49% | 12/29/2022 | 420 | 420,114 | ||||||||||||||||
Term Loan(f) | - | 04/01/2026 | 10,172 | 10,220,157 | ||||||||||||||||
Diebold Nixdorf, Inc. | 11.75% | 08/31/2022 | 5,188 | 5,525,295 | ||||||||||||||||
Term Loan B(f) | - | 11/06/2023 | EUR | 1,051 | 1,092,583 | |||||||||||||||
Term Loan B (3 mo. USD LIBOR + 2.75%) | 5.31% | 11/06/2023 | 3,557 | 3,347,735 | ||||||||||||||||
DigiCert Holdings, Inc., Second Lien Term Loan (1 mo. USD LIBOR + 8.00%) | 10.50% | 10/31/2025 | 663 | 648,558 | ||||||||||||||||
Dynatrace LLC, Second Lien Term Loan (1 mo. USD LIBOR + 7.00%) | 9.49% | 08/21/2026 | 299 | 297,795 | ||||||||||||||||
Energizer Holdings, Inc., Term Loan B (1 mo. USD LIBOR + 2.25%) | 4.74% | 12/17/2025 | 2,270 | 2,271,393 | ||||||||||||||||
Epicor Software Corp., First Lien Term Loan (1 mo. USD LIBOR + 3.25%) | 5.75% | 06/01/2022 | 152 | 150,766 | ||||||||||||||||
Everest Bidco S.A.S. (France), First Lien Term Loan B (3 mo. EURIBOR + 4.00%) | 4.00% | 07/04/2025 | EUR | 2,794 | 3,179,593 | |||||||||||||||
Finastra USA, Inc., First Lien Term Loan (3 mo. USD LIBOR + 3.50%) | 6.30% | 06/13/2024 | 2,997 | 2,972,810 | ||||||||||||||||
Go Daddy Operating Company, LLC, Term LoanB-1 (1 mo. USD LIBOR + 2.25%) | 4.74% | 02/15/2024 | 8,246 | 8,241,038 | ||||||||||||||||
Hyland Software, Inc., Second Lien Term Loan (1 mo. USD LIBOR + 7.00%) | 9.50% | 07/07/2025 | 626 | 626,471 | ||||||||||||||||
IGT Holding IV AB, Term Loan B (3 mo. USD LIBOR + 3.75%) | 6.57% | 07/31/2024 | 2,944 | 2,900,009 | ||||||||||||||||
I-Logic Technologies Bidco Ltd., Term Loan (3 mo. EURIBOR + 3.25%) | 4.25% | 12/21/2024 | EUR | 476 | 540,588 | |||||||||||||||
Imperva, Inc. | 0.00% | 01/11/2027 | 1,722 | 1,694,075 | ||||||||||||||||
Term Loan (1 mo. USD LIBOR + 4.00%) | 6.52% | 01/10/2026 | 700 | 699,562 | ||||||||||||||||
Integrated Device Technology, Inc., Term LoanB-1 (1 mo. USD LIBOR + 2.50%) | 4.99% | 04/04/2024 | 1,910 | 1,907,412 | ||||||||||||||||
MA Finance Co., LLC, Term LoanB-2 (1 mo. USD LIBOR + 2.25%) | 4.74% | 11/19/2021 | 8,978 | 8,910,956 | ||||||||||||||||
Marcel Bidco LLC | - | 09/27/2025 | 743 | 736,708 | ||||||||||||||||
Term LoanB-2(f) | - | 09/27/2025 | EUR | 277 | 314,681 | |||||||||||||||
Mavenir Systems, Inc., Term Loan (1 mo. USD LIBOR + 6.00%) | 8.52% | 05/08/2025 | 4,459 | 4,414,830 | ||||||||||||||||
McAfee, LLC, Term Loan B (1 mo. USD LIBOR + 3.75%) | 6.24% | 09/30/2024 | 1,039 | 1,043,052 | ||||||||||||||||
Mediaocean LLC, First Lien Term Loan (1 mo. USD LIBOR + 4.25%) | 6.75% | 08/15/2022 | 4,212 | 4,201,276 | ||||||||||||||||
Microchip Technology, Inc., Term Loan (1 mo. USD LIBOR + 2.00%) | 4.50% | 05/29/2025 | 4,803 | 4,797,118 | ||||||||||||||||
Mirion Technologies, Inc., Term Loan(f) | - | 03/04/2026 | 2,292 | 2,016,499 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco Floating Rate Fund |
Principal | ||||||||||||||||||||
Interest | Maturity | Amount | ||||||||||||||||||
Rate | Date | (000)(a) | Value | |||||||||||||||||
Electronics & Electrical-(continued) | ||||||||||||||||||||
MKS Instruments, Inc., Term LoanB-5 | 4.74% | 01/30/2026 | $ | 330 | $ | 329,741 | ||||||||||||||
Neustar, Inc. | 5.99% | 08/08/2024 | 3,102 | 2,993,309 | ||||||||||||||||
Term LoanB-5(f) | - | 08/08/2024 | 1,776 | 1,744,816 | ||||||||||||||||
Oberthur Technologies of America Corp. (France) | 3.75% | 01/10/2024 | EUR | 4,267 | 4,786,548 | |||||||||||||||
Term LoanB-1 (3 mo. USD LIBOR + 3.75%) | 6.55% | 01/10/2024 | 1,744 | 1,720,241 | ||||||||||||||||
OEConnection LLC | 6.50% | 11/22/2024 | 1,058 | 1,050,337 | ||||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 8.00%) (Acquired 11/22/2017; Cost $403,511)(d) | 10.50% | 11/21/2025 | 407 | 404,293 | ||||||||||||||||
Omnitracs, Inc., Term Loan (3 mo. USD LIBOR + 2.75%) | 5.58% | 03/23/2025 | 5,837 | 5,751,996 | ||||||||||||||||
Optiv, Inc. | 9.75% | 02/01/2025 | 1,153 | 1,097,119 | ||||||||||||||||
Term Loan (1 mo. USD LIBOR + 3.25%) | 5.74% | 02/01/2024 | 5,961 | 5,729,907 | ||||||||||||||||
Plantronics, Inc., Term Loan B (1 mo. USD LIBOR + 2.50%) | 4.99% | 07/02/2025 | 6,277 | 6,261,076 | ||||||||||||||||
Project Accelerate Parent, LLC, First Lien Term Loan (1 mo. USD LIBOR + 4.25%) | 6.77% | 01/02/2025 | 1,897 | 1,902,063 | ||||||||||||||||
Project Leopard Holdings, Inc. | 6.74% | 07/07/2023 | 2,077 | 2,058,811 | ||||||||||||||||
Term Loan (1 mo. USD LIBOR + 4.50%) | 6.99% | 07/07/2023 | 1,484 | 1,472,617 | ||||||||||||||||
Quest Software US Holdings, Inc., First Lien Term Loan (3 mo. USD LIBOR + 4.25%) | 7.00% | 05/16/2025 | 10,544 | 10,520,770 | ||||||||||||||||
Renaissance Holding Corp. | 5.74% | 05/30/2025 | 258 | 252,810 | ||||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 7.00%) | 9.50% | 05/29/2026 | 723 | 666,770 | ||||||||||||||||
Resideo Funding, Inc, Term Loan B (2 mo. USD LIBOR + 2.00%) | 4.63% | 10/25/2025 | 1,344 | 1,343,503 | ||||||||||||||||
Riverbed Technology, Inc., Term Loan (1 mo. USD LIBOR + 4.00%) | 5.75% | 04/24/2022 | 8,478 | 7,741,120 | ||||||||||||||||
Sandvine Corp. (Canada) | 7.02% | 10/31/2025 | 3,879 | 3,821,157 | ||||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 8.00%)(d) | 10.50% | 11/02/2026 | 564 | 558,521 | ||||||||||||||||
Science Applications International Corp., Term Loan B (1 mo. USD LIBOR + 1.75%) | 4.24% | 10/31/2025 | 3,412 | 3,386,640 | ||||||||||||||||
Severin Acquisition, LLC, Term Loan (1 mo. USD LIBOR + 3.25%) | 5.99% | 08/01/2025 | 117 | 115,980 | ||||||||||||||||
SonicWall U.S. Holdings, Inc., Term Loan (3 mo. USD LIBOR + 3.50%) | 6.18% | 05/16/2025 | 511 | 500,055 | ||||||||||||||||
SS&C Technologies, Inc. | 4.74% | 04/16/2025 | 10,684 | 10,649,432 | ||||||||||||||||
Term LoanB-4 (1 mo. USD LIBOR + 2.25%) | 4.74% | 04/16/2025 | 4,092 | 4,078,913 | ||||||||||||||||
Term LoanB-5 (1 mo. USD LIBOR + 2.25%) | 4.74% | 04/16/2025 | 4,338 | 4,326,223 | ||||||||||||||||
Sybil Software LLC, Term Loan (3 mo. USD LIBOR + 2.50%) | 5.30% | 09/29/2023 | 7,716 | 7,722,366 | ||||||||||||||||
TTM Technologies, Inc., Term Loan B (1 mo. USD LIBOR + 2.50%) | 5.01% | 09/28/2024 | 5,624 | 5,560,558 | ||||||||||||||||
Vertafore, Inc., Term Loan (3 mo. USD LIBOR + 3.25%) | 6.05% | 07/02/2025 | 385 | 380,872 | ||||||||||||||||
Wall Street Systems Delaware, Inc., Term Loan (2 mo. USD LIBOR + 3.00%) | 5.64% | 11/21/2024 | 1,735 | 1,673,933 | ||||||||||||||||
Western Digital Corp., Term LoanB-4 (1 mo. USD LIBOR + 1.75%) | 4.23% | 04/29/2023 | 3,429 | 3,374,772 | ||||||||||||||||
Xperi Corp., Term LoanB-1 (1 mo. USD LIBOR + 2.50%) | 4.99% | 12/01/2023 | 3,552 | 3,504,972 | ||||||||||||||||
192,430,756 | ||||||||||||||||||||
Financial Intermediaries-1.25% | ||||||||||||||||||||
Advisor Group, Inc., Term Loan (1 mo. USD LIBOR + 3.75%) | 6.25% | 08/17/2025 | 2,364 | 2,369,537 | ||||||||||||||||
Edelman Financial Center, LLC (The), First Lien Term Loan | 6.04% | 07/19/2025 | 320 | 320,222 | ||||||||||||||||
Evergood 4 APS (Denmark) | 8.00% | 02/06/2027 | EUR | 1,154 | 1,309,335 | |||||||||||||||
Term LoanB-3(f) | - | 02/06/2025 | EUR | 176 | 201,180 | |||||||||||||||
GEO Group, Inc., Term Loan (1 mo. USD LIBOR + 2.00%) | 4.50% | 03/22/2024 | 2,746 | 2,692,432 | ||||||||||||||||
LPL Holdings, Inc., Term Loan B (1 mo. USD LIBOR + 2.25%) | 4.73% | 09/23/2024 | 1,051 | 1,044,993 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 | Invesco Floating Rate Fund |
Principal | ||||||||||||||||||||
Interest | Maturity | Amount | ||||||||||||||||||
Rate | Date | (000)(a) | Value | |||||||||||||||||
Financial Intermediaries-(continued) | ||||||||||||||||||||
MoneyGram International, Inc., Term Loan (1 mo. USD LIBOR + 3.25%) | 5.74% | 03/27/2020 | $ | 8,580 | $ | 7,958,343 | ||||||||||||||
RPI Finance Trust, Term LoanB-6 (1 mo. USD LIBOR + 2.00%) | 4.49% | 03/27/2023 | 6,869 | 6,867,252 | ||||||||||||||||
SGG Holdings S.A. (Luxembourg), Term Loan B (6 mo. EURIBOR + 3.75%) | 3.75% | 07/11/2025 | EUR | 1,145 | 1,295,188 | |||||||||||||||
Stiphout Finance LLC (Virgin Islands (British)) | 5.49% | 10/26/2022 | 3,816 | 3,734,504 | ||||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 7.25%) (Acquired 07/21/2015; Cost $42,429)(d) | 9.75% | 10/26/2023 | 43 | 39,602 | ||||||||||||||||
27,832,588 | ||||||||||||||||||||
Food Products-3.66% | ||||||||||||||||||||
8th Avenue Food & Provisions, Inc., Second Lien Term Loan (1 mo. USD LIBOR + 7.75%) | 10.27% | 10/01/2026 | 1,152 | 1,152,235 | ||||||||||||||||
CHG PPC Parent LLC, Term Loan (1 mo. USD LIBOR + 2.75%) | 5.24% | 03/31/2025 | 1,864 | 1,852,154 | ||||||||||||||||
CSM Bakery Supplies LLC, First Lien Term Loan (3 mo. USD LIBOR + 4.00%) | 6.80% | 07/03/2020 | 5,705 | 5,400,625 | ||||||||||||||||
Dole Food Co., Inc., Term Loan B (3 mo. USD LIBOR + 2.75%) | 5.25% | 04/06/2024 | 8,260 | 8,174,455 | ||||||||||||||||
H-Food Holdings, LLC | 6.18% | 05/23/2025 | 9,567 | 9,469,251 | ||||||||||||||||
Term LoanB-2 (1 mo. USD LIBOR + 4.00%) | 6.49% | 05/23/2025 | 274 | 273,889 | ||||||||||||||||
Hostess Brands, LLC, Term Loan B (1 mo. USD LIBOR + 2.25%) | 4.89% | 08/03/2022 | 2 | 1,557 | ||||||||||||||||
Jacobs Douwe Egberts International B.V., Term Loan B (1 mo. USD LIBOR + 2.00%) | 4.56% | 11/01/2025 | 6,107 | 6,086,438 | ||||||||||||||||
JBS USA Lux S.A., Term Loan (3 mo. USD LIBOR + 2.50%) | 5.26% | 10/30/2022 | 22,802 | 22,782,242 | ||||||||||||||||
MastronardiProduce-USA, Inc., Term Loan B (1 mo. USD LIBOR + 3.25%) | 5.76% | 05/01/2025 | 1,414 | 1,410,880 | ||||||||||||||||
Nomad Foods US LLC (United Kingdom), Term LoanB-4 (1 mo. USD LIBOR + 2.25%) | 4.74% | 05/15/2024 | 3,458 | 3,406,162 | ||||||||||||||||
Post Holdings, Inc., Series A Term Loan (1 mo. USD LIBOR + 2.00%) | 4.49% | 05/24/2024 | 1,968 | 1,964,339 | ||||||||||||||||
QCE LLC, PIK Term Loan, 10.00% PIK Rate | 10.00% | 06/30/2019 | 6 | 622 | ||||||||||||||||
Shearer’s Foods, LLC | 6.74% | 06/30/2021 | 2,996 | 2,983,265 | ||||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 6.75%) (Acquired 06/19/2014; Cost $454,541) | 9.25% | 06/30/2022 | 449 | 436,830 | ||||||||||||||||
United Natural Foods, Inc., Term Loan B (1 mo. USD LIBOR + 4.25%) | 6.74% | 10/22/2025 | 17,721 | 15,772,084 | ||||||||||||||||
81,167,028 | ||||||||||||||||||||
Food Service-2.10% | ||||||||||||||||||||
Aramark Services, Inc., Term LoanB-3 (1 mo. USD LIBOR + 1.75%) | 4.24% | 03/11/2025 | 17 | 16,768 | ||||||||||||||||
Carlisle FoodService Products, Inc. | 0.00% | 03/20/2025 | 91 | 87,906 | ||||||||||||||||
Term Loan | 5.49% | 03/20/2025 | 399 | 386,795 | ||||||||||||||||
Houston Foods, Inc., Term Loan (1 mo. USD LIBOR + 3.75%) | 6.24% | 07/20/2025 | 3,685 | 3,643,577 | ||||||||||||||||
IRB Holding Corp., Term Loan B (1 mo. USD LIBOR + 3.25%) | 5.75% | 02/05/2025 | 4,610 | 4,583,819 | ||||||||||||||||
New Red Finance, Inc., Term LoanB-3 (1 mo. USD LIBOR + 2.25%) | 4.74% | 02/16/2024 | 16,147 | 16,049,960 | ||||||||||||||||
NPC International, Inc. | 6.05% | 04/19/2024 | 2,471 | 2,329,848 | ||||||||||||||||
Second Lien Term Loan (2 mo. USD LIBOR + 7.50%) | 10.14% | 04/18/2025 | 669 | 615,047 | ||||||||||||||||
Restaurant Technologies, Inc., Second Lien Term Loan (1 mo. USD LIBOR + 6.50%)(d) | 8.99% | 10/01/2026 | 1,367 | 1,370,904 | ||||||||||||||||
Tacala Investment Corp., Second Lien Term Loan (1 mo. USD LIBOR + 7.00%) | 9.50% | 02/01/2026 | 872 | 864,609 | ||||||||||||||||
TMK Hawk Parent, Corp., Term Loan (1 mo. USD LIBOR + 3.50%) | 6.00% | 08/28/2024 | 2,962 | 2,590,438 | ||||||||||||||||
US Foods, Inc., Term Loan (1 mo. USD LIBOR + 2.00%) | 4.49% | 06/27/2023 | 12,655 | 12,604,022 | ||||||||||||||||
Weight Watchers International, Inc., Term Loan (3 mo. USD LIBOR + 4.75%) | 7.56% | 11/29/2024 | 1,364 | 1,327,655 | ||||||||||||||||
46,471,348 | ||||||||||||||||||||
Forest Products-0.08% | ||||||||||||||||||||
American Greetings Corp., Term Loan (1 mo. USD LIBOR + 4.50%) | 6.99% | 04/06/2024 | 1,821 | 1,816,182 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 | Invesco Floating Rate Fund |
Principal | ||||||||||||||||||||
Interest | Maturity | Amount | ||||||||||||||||||
Rate | Date | (000)(a) | Value | |||||||||||||||||
Health Care-3.22% | ||||||||||||||||||||
Acadia Healthcare Co., Inc. | 4.99% | 02/11/2022 | $ | 1,724 | $ | 1,721,962 | ||||||||||||||
Term LoanB-4 (1 mo. USD LIBOR + 2.50%) | 4.99% | 02/16/2023 | 6,498 | 6,489,984 | ||||||||||||||||
Argon Medical Devices Holdings, Inc. | 6.24% | 01/23/2025 | 47 | 46,637 | ||||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 8.00%)(d) | 10.50% | 01/23/2026 | 220 | 219,192 | ||||||||||||||||
athenahealth, Inc., Term Loan B | 0.00% | 02/11/2026 | 8,662 | 8,635,363 | ||||||||||||||||
BVI Medical, Inc., Term Loan(f) | - | 02/18/2026 | EUR | 472 | 542,594 | |||||||||||||||
Convatec, Inc., Term Loan B (3 mo. USD LIBOR + 2.25%) | 5.05% | 10/31/2023 | 171 | 170,231 | ||||||||||||||||
Dentalcorp Perfect Smile ULC (Canada) | 5.58% | 06/06/2025 | 86 | 85,532 | ||||||||||||||||
First Lien Term Loan (1 mo. USD LIBOR + 3.75%) | 6.24% | 06/06/2025 | 344 | 341,113 | ||||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 7.50%) | 10.00% | 06/08/2026 | 1,837 | 1,809,422 | ||||||||||||||||
Second Lien Term Loan(e) | 10.11% | 06/08/2026 | 459 | 452,356 | ||||||||||||||||
Explorer Holdings, Inc., Term Loan (3 mo. USD LIBOR + 3.75%) | 6.56% | 05/02/2023 | 291 | 292,066 | ||||||||||||||||
Global Healthcare Exchange, LLC, Term Loan (3 mo. USD LIBOR + 3.25%) | 6.07% | 06/28/2024 | 2,565 | 2,542,049 | ||||||||||||||||
GoodRx, Inc., Term Loan (1 mo. USD LIBOR + 3.00%) | 5.50% | 10/10/2025 | 151 | 150,257 | ||||||||||||||||
Greatbatch, Ltd., Term Loan B (1 mo. USD LIBOR + 3.00%) | 5.51% | 10/27/2022 | 409 | 409,875 | ||||||||||||||||
HC Group Holdings III, Inc., First Lien Term Loan (1 mo. USD LIBOR + 3.75%) | 6.24% | 04/07/2022 | 2,494 | 2,474,947 | ||||||||||||||||
Heartland Dental, LLC | 0.00% | 04/30/2025 | 25 | 24,585 | ||||||||||||||||
Term Loan | 6.24% | 04/30/2025 | 180 | 177,804 | ||||||||||||||||
IQVIA, Inc., Term LoanB-2 (1 mo. USD LIBOR + 2.00%) | 4.80% | 01/17/2025 | 738 | 737,610 | ||||||||||||||||
IWH UK Midco Ltd., Term Loan B (3 mo. EURIBOR + 4.00%) | 4.00% | 01/31/2025 | EUR | 1,145 | 1,290,343 | |||||||||||||||
Kinetic Concepts, Inc., Term Loan (3 mo. USD LIBOR + 3.25%) | 6.05% | 02/02/2024 | 5,880 | 5,877,021 | ||||||||||||||||
MPH Acquisition Holdings LLC, Term Loan (3 mo. USD LIBOR + 2.75%) | 5.55% | 06/07/2023 | 6,929 | 6,872,415 | ||||||||||||||||
Nidda Healthcare Holding AG (Germany) | 5.37% | 08/21/2024 | GBP | 486 | 643,931 | |||||||||||||||
Term Loan D (3 mo. EURIBOR+ 4.00%) | 4.00% | 08/21/2024 | EUR | 1,978 | 2,258,691 | |||||||||||||||
Ortho-Clinical Diagnostics, Inc., Term Loan (1 mo. USD LIBOR + 3.25%) | 5.75% | 06/30/2025 | 6,699 | 6,644,765 | ||||||||||||||||
PAREXEL International Corp., Term Loan (1 mo. USD LIBOR + 2.75%) | 5.24% | 09/27/2024 | 2,864 | 2,787,158 | ||||||||||||||||
Prophylaxis B.V. (Netherlands), Term Loan B (3 mo. EURIBOR + 4.00%) | 4.00% | 06/05/2025 | EUR | 2,577 | 2,777,829 | |||||||||||||||
Surgery Center Holdings, Inc., First Lien Term Loan (1 mo. USD LIBOR + 3.25%) | 5.75% | 09/02/2024 | 1,112 | 1,087,182 | ||||||||||||||||
Syneos Health, Inc., Term Loan B (1 mo. USD LIBOR + 2.00%) | 4.49% | 08/01/2024 | 151 | 148,284 | ||||||||||||||||
Team Health Holdings, Inc., Term Loan (1 mo. USD LIBOR + 2.75%) | 5.24% | 02/06/2024 | 3,413 | 3,100,164 | ||||||||||||||||
Terveys-ja hoivapalvelut Suomi Oy (Finland) | 4.25% | 08/11/2025 | EUR | 1,802 | 2,069,493 | |||||||||||||||
Second Lien Term Loan (3 mo. EURIBOR + 7.50%) | 7.50% | 07/19/2026 | EUR | 986 | 1,118,899 | |||||||||||||||
Unilabs Diagnostics AB (Sweden), Revolver Loan(d)(e) | 0.00% | 04/01/2021 | EUR | 1,850 | 2,067,980 | |||||||||||||||
Verscend Holding Corp., Term Loan B (1 mo. USD LIBOR + 4.50%) | 7.00% | 08/27/2025 | 5,279 | 5,295,834 | ||||||||||||||||
71,363,568 | ||||||||||||||||||||
Home Furnishings-0.94% | ||||||||||||||||||||
Comfort Holding, LLC, First Lien Term Loan (1 mo. USD LIBOR + 4.75%) | 7.24% | 02/05/2024 | 2,418 | 2,294,248 | ||||||||||||||||
Global Appliance, Inc., Term Loan B (1 mo. USD LIBOR + 4.00%) | 6.50% | 09/29/2024 | 2,878 | 2,874,083 | ||||||||||||||||
Hayward Industries, Inc., First Lien Term Loan (1 mo. USD LIBOR + 3.50%) | 5.99% | 08/05/2024 | 29 | 28,800 | ||||||||||||||||
Hilding Anders AB, Term Loan B (3 mo. EURIBOR + 4.50%) | 4.50% | 11/29/2024 | EUR | 2,191 | 2,032,485 | |||||||||||||||
Lifetime Brands, Inc., Term Loan B (1 mo. USD LIBOR + 3.50%) | 5.99% | 02/28/2025 | 1,099 | 1,086,889 | ||||||||||||||||
PGT Innovations, Inc., Term Loan (2 mo. USD LIBOR + 3.50%) | 6.04% | 02/16/2022 | 133 | 132,655 | ||||||||||||||||
Serta Simmons Bedding, LLC, First Lien Term Loan (1 mo. USD LIBOR + 3.50%) | 6.01% | 11/08/2023 | 5,461 | 4,573,945 | ||||||||||||||||
SIWF Holdings, Inc., Term Loan (1 mo. USD LIBOR + 4.25%) | 6.73% | 06/15/2025 | 3,754 | 3,748,444 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 | Invesco Floating Rate Fund |
Principal | ||||||||||||||||||||
Interest | Maturity | Amount | ||||||||||||||||||
Rate | Date | (000)(a) | Value | |||||||||||||||||
Home Furnishings-(continued) | ||||||||||||||||||||
TGP Holdings III, LLC | 7.05% | 09/25/2024 | $ | 3,307 | $ | 3,157,714 | ||||||||||||||
Second Lien Term Loan (3 mo. USD LIBOR + 8.50%)(d) | 11.31% | 09/25/2025 | 882 | 856,017 | ||||||||||||||||
20,785,280 | ||||||||||||||||||||
Industrial Equipment-1.79% | ||||||||||||||||||||
Airxcel, Inc., First Lien Term Loan (1 mo. USD LIBOR + 4.50%) | 7.00% | 04/28/2025 | 694 | 663,220 | ||||||||||||||||
Alpha AB Bidco BV, Term Loan B(f) | - | 07/30/2025 | EUR | 705 | 803,018 | |||||||||||||||
Altra Industrial Motion Corp., Term Loan B (1 mo. USD LIBOR + 2.00%) | 4.49% | 10/01/2025 | 3,238 | 3,209,972 | ||||||||||||||||
Clark Equipment Co., Term Loan B (3 mo. USD LIBOR + 2.00%) | 4.80% | 05/18/2024 | 3,694 | 3,658,477 | ||||||||||||||||
Columbus McKinnon Corp., Term Loan (3 mo. USD LIBOR + 2.50%) | 5.30% | 01/31/2024 | 56 | 56,055 | ||||||||||||||||
DXP Enterprises, Inc., Term Loan (1 mo. USD LIBOR + 4.75%)(d) | 7.25% | 08/29/2023 | 1,431 | 1,430,700 | ||||||||||||||||
Engineered Machinery Holdings, Inc. | 6.05% | 07/19/2024 | 1,748 | 1,698,416 | ||||||||||||||||
First Lien Incremental Term Loan (1 wk. USD LIBOR + 4.25%) | 7.07% | 07/19/2024 | 1,171 | 1,166,256 | ||||||||||||||||
Second Lien Term Loan (3 mo. USD LIBOR + 7.25%) | 10.06% | 07/18/2025 | 1,647 | 1,626,168 | ||||||||||||||||
Gardner Denver, Inc., Term LoanB-1 (1 mo. USD LIBOR + 2.75%) | 5.24% | 07/30/2024 | 3,310 | 3,313,547 | ||||||||||||||||
Generac Power Systems, Inc., Term Loan (1 mo. USD LIBOR + 1.75%) | 4.26% | 05/31/2023 | 2,159 | 2,146,393 | ||||||||||||||||
Hamilton Holdco LLC, Term Loan B (3 mo. USD LIBOR + 2.00%)(d) | 4.81% | 07/02/2025 | 3,804 | 3,799,399 | ||||||||||||||||
Milacron LLC, Term Loan B (1 mo. USD LIBOR + 3.00%) | 4.99% | 09/28/2023 | 6,718 | 6,646,650 | ||||||||||||||||
MX Holdings US, Inc., Term LoanB-1-C (1 mo. USD LIBOR + 3.00%) | 5.49% | 07/31/2025 | 3,390 | 3,398,268 | ||||||||||||||||
New VAC US LLC, Term Loan B (3 mo. USD LIBOR + 4.00%)(d) | 6.80% | 03/08/2025 | 1,207 | 1,199,529 | ||||||||||||||||
Rexnord LLC/ RBS Global, Inc., Term Loan B (1 mo. USD LIBOR + 2.00%) | 4.49% | 08/21/2024 | 73 | 72,501 | ||||||||||||||||
Robertshaw US Holding Corp. | 6.00% | 02/28/2025 | 2,481 | 2,334,963 | ||||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 8.00%)(d) | 10.50% | 02/28/2026 | 1,100 | 979,137 | ||||||||||||||||
Tank Holding Corp., Term Loan (1 mo. USD LIBOR + 3.25%) | 5.76% | 03/16/2022 | 1,088 | 1,086,190 | ||||||||||||||||
Terex Corp., Term Loan (1 mo. USD LIBOR + 2.00%) | 4.49% | 01/31/2024 | 453 | 449,431 | ||||||||||||||||
39,738,290 | ||||||||||||||||||||
Insurance-1.04% | ||||||||||||||||||||
Alliant Holdings Intermediate, LLC, Term Loan (1 mo. USD LIBOR + 2.75%) | 5.23% | 05/09/2025 | 1,208 | 1,197,160 | ||||||||||||||||
AmWINS Group, LLC, First Lien Term Loan (1 mo. USD LIBOR + 2.75%) | 5.25% | 01/25/2024 | 4,012 | 3,999,221 | ||||||||||||||||
FrontDoor, Inc., Term Loan (1 mo. USD LIBOR + 2.50%) | 5.00% | 08/16/2025 | 272 | 271,647 | ||||||||||||||||
Hub International Ltd., Term Loan (3 mo. USD LIBOR + 2.75%) | 5.52% | 04/25/2025 | 8,254 | 8,189,454 | ||||||||||||||||
USI, Inc., Term Loan (3 mo. USD LIBOR + 3.00%) | 5.80% | 05/16/2024 | 9,544 | 9,472,492 | ||||||||||||||||
23,129,974 | ||||||||||||||||||||
Leisure Goods, Activities & Movies-3.07% | ||||||||||||||||||||
Alpha Topco Ltd. (United Kingdom), Term Loan B (1 mo. USD LIBOR + 2.50%) | 4.99% | 02/01/2024 | 17,939 | 17,624,775 | ||||||||||||||||
AMC Entertainment, Inc. | 4.74% | 12/15/2022 | 1,807 | 1,798,992 | ||||||||||||||||
Term Loan | 0.00% | 12/15/2023 | 5,922 | 5,896,404 | ||||||||||||||||
Ancestry.com Operations, Inc., First Lien Term Loan (1 mo. USD LIBOR + 3.25%) | 5.75% | 10/19/2023 | 1,486 | 1,482,787 | ||||||||||||||||
Crown Finance US, Inc., Term Loan (1 mo. USD LIBOR + 2.50%) | 4.99% | 02/28/2025 | 14,701 | 14,630,795 | ||||||||||||||||
CWGS Group, LLC, Term Loan (1 mo. USD LIBOR + 2.75%) | 5.27% | 11/08/2023 | 3,360 | 3,186,504 | ||||||||||||||||
Dorna Sports, S.L., Term LoanB-2 (6 mo. USD LIBOR + 3.00%) | 5.88% | 04/12/2024 | 1,980 | 1,934,902 | ||||||||||||||||
Equinox Holdings, Inc., Second Lien Term Loan (1 mo. USD LIBOR + 7.00%) | 9.49% | 09/06/2024 | 362 | 364,282 | ||||||||||||||||
Fitness International, LLC, Term Loan B (1 mo. USD LIBOR + 3.25%) | 5.74% | 04/18/2025 | 3,904 | 3,889,830 | ||||||||||||||||
Invictus Media S.L.U. (Spain) | 4.50% | 06/26/2025 | EUR | 1,417 | 1,616,778 | |||||||||||||||
Term LoanB-2 (6 mo. EURIBOR + 4.50%) | 4.50% | 06/26/2025 | EUR | 849 | 969,188 | |||||||||||||||
Lakeland Tours, LLC, Term Loan (3 mo. USD LIBOR + 4.00%) | 6.79% | 12/15/2024 | 2,122 | 2,108,074 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 | Invesco Floating Rate Fund |
Principal | ||||||||||||||||||||
Interest | Maturity | Amount | ||||||||||||||||||
Rate | Date | (000)(a) | Value | |||||||||||||||||
Leisure Goods, Activities & Movies-(continued) | ||||||||||||||||||||
Life Time Fitness, Inc., Term Loan (1 mo. USD LIBOR + 2.75%) | 5.38% | 06/10/2022 | $ | 486 | $ | 483,942 | ||||||||||||||
Live Nation Entertainment, Inc., Term LoanB-3 (1 mo. USD LIBOR + 1.75%) | 4.25% | 10/31/2023 | 99 | 98,286 | ||||||||||||||||
Orbiter International S.a.r.l. (Luxembourg), Term LoanB-2 (3 mo. CHF LIBOR + 4.25%) | 4.25% | 07/11/2024 | CHF | 1,039 | 1,033,425 | |||||||||||||||
Sabre GLBL, Inc., Term Loan B (1 mo. USD LIBOR + 2.00%) | 4.49% | 02/22/2024 | 199 | 199,147 | ||||||||||||||||
Shutterfly, Inc. | 5.25% | 08/17/2024 | 2,318 | 2,297,948 | ||||||||||||||||
Term Loan B (1 mo. USD LIBOR + 2.50%) | 4.99% | 08/17/2024 | 1,285 | 1,264,885 | ||||||||||||||||
SSH Group Holdings, Inc. | 6.90% | 07/30/2025 | 668 | 661,839 | ||||||||||||||||
Second Lien Term Loan (2 mo. USD LIBOR + 8.25%)(d) | 10.90% | 07/30/2026 | 654 | 657,016 | ||||||||||||||||
UFC Holdings, LLC, First Lien Term Loan (1 mo. USD LIBOR + 3.25%) | 5.75% | 08/18/2023 | 5,777 | 5,790,267 | ||||||||||||||||
67,990,066 | ||||||||||||||||||||
Lodging & Casinos-3.58% | ||||||||||||||||||||
AMCP Clean Acquisition Co., LLC | 7.06% | 06/16/2025 | 748 | 736,549 | ||||||||||||||||
Delayed Draw Term Loan(e) | 7.15% | 06/16/2025 | 180 | 177,660 | ||||||||||||||||
B&B Hotels SAS, Term Loan B (3 mo. EURIBOR + 3.00%) | 3.00% | 03/14/2023 | EUR | 3,071 | 3,463,026 | |||||||||||||||
Belmond Interfin Ltd. (Bermuda), Term Loan (1 mo. USD LIBOR + 2.75%) | 5.24% | 07/03/2024 | 159 | 159,337 | ||||||||||||||||
Caesars Resort Collection, LLC, Term Loan B (1 mo. USD LIBOR + 2.75%) | 5.24% | 12/22/2024 | 21,134 | 21,101,026 | ||||||||||||||||
CityCenter Holdings, LLC, Term Loan B (1 mo. USD LIBOR + 2.25%) | 4.74% | 04/18/2024 | 1,641 | 1,632,160 | ||||||||||||||||
Four Seasons Hotels Ltd., First Lien Term Loan (1 mo. USD LIBOR + 2.00%) | 4.49% | 11/30/2023 | 80 | 80,036 | ||||||||||||||||
Golden Nugget, Inc., Term Loan B (1 mo. USD LIBOR + 2.75%) | 5.24% | 10/04/2023 | 3,551 | 3,540,901 | ||||||||||||||||
Hilton Worldwide Finance, LLC, Term LoanB-2 (1 mo. USD LIBOR + 1.75%) | 4.24% | 10/25/2023 | 95 | 94,893 | ||||||||||||||||
Penn National Gaming, Inc., Incremental Term LoanB-1 (3 mo. USD LIBOR + 2.25%) | 4.84% | 10/15/2025 | 2,259 | 2,253,103 | ||||||||||||||||
Scientific Games International, Inc., Term LoanB-5 (1 mo. USD LIBOR + 2.75%) | 5.31% | 08/14/2024 | 15,014 | 14,906,292 | ||||||||||||||||
Stars Group (US)Co-Borrower, LLC, Term Loan (3 mo. USD LIBOR + 3.50%) | 6.31% | 07/10/2025 | 10,153 | 10,171,109 | ||||||||||||||||
Station Casinos LLC, Term Loan B (1 mo. USD LIBOR + 3.00%) | 5.00% | 06/08/2023 | 6,895 | 6,876,288 | ||||||||||||||||
Twin River Management Group, Inc., Term Loan (3 mo. USD LIBOR + 3.50%) | 6.31% | 07/10/2020 | 5,484 | 5,494,480 | ||||||||||||||||
VICI Properties 1 LLC, Term Loan B (1 mo. USD LIBOR + 2.00%) | 4.48% | 12/20/2024 | 6,667 | 6,640,026 | ||||||||||||||||
Wyndham Hotels & Resorts, Inc., Term Loan B (1 mo. USD LIBOR + 1.75%) | 4.24% | 05/30/2025 | 2,019 | 2,012,262 | ||||||||||||||||
79,339,148 | ||||||||||||||||||||
Nonferrous Metals & Minerals-0.61% | ||||||||||||||||||||
American Rock Salt Co. LLC, Term Loan (1 mo. USD LIBOR + 3.75%) | 6.24% | 03/21/2025 | 2,251 | 2,249,168 | ||||||||||||||||
Covia Holdings Corp., Term Loan (3 mo. USD LIBOR + 3.75%) | 6.55% | 06/01/2025 | 6,058 | 5,288,649 | ||||||||||||||||
Form Technologies LLC | 5.77% | 01/28/2022 | 2,442 | 2,409,677 | ||||||||||||||||
Second Lien Term Loan (3 mo. USD LIBOR + 8.50%)(d) | 11.31% | 01/30/2023 | 25 | 24,597 | ||||||||||||||||
U.S. Silica Co., Term Loan (1 mo. USD LIBOR + 4.00%) | 6.50% | 05/01/2025 | 2,065 | 1,966,959 | ||||||||||||||||
US Salt, LLC, Term Loan(d)(f) | - | 01/16/2026 | 1,496 | 1,499,594 | ||||||||||||||||
13,438,644 | ||||||||||||||||||||
Oil & Gas-5.68% | ||||||||||||||||||||
BCP Raptor, LLC, Term Loan (3 mo. USD LIBOR + 4.25%) | 6.88% | 06/24/2024 | 4,070 | 3,902,148 | ||||||||||||||||
BCP Renaissance Parent LLC, Term Loan (3 mo. USD LIBOR + 3.50%) | 6.25% | 10/31/2024 | 12 | 12,407 | ||||||||||||||||
Brazos Delaware II, LLC, Term Loan (1 mo. USD LIBOR + 4.00%) | 6.48% | 05/21/2025 | 3,594 | 3,457,372 | ||||||||||||||||
Bronco Midstream Funding, LLC, Term Loan (1 mo. USD LIBOR + 3.50%) | 5.99% | 08/14/2023 | 765 | 763,164 | ||||||||||||||||
California Resources Corp. | 12.87% | 12/31/2021 | 2,430 | 2,557,435 | ||||||||||||||||
Term Loan (1 mo. USD LIBOR + 4.75%) | 7.24% | 12/31/2022 | 3,947 | 3,898,991 | ||||||||||||||||
Centurion Pipeline Co., LLC, Term Loan (3 mo. USD LIBOR + 3.25%) | 6.05% | 09/29/2025 | 1,217 | 1,218,949 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 | Invesco Floating Rate Fund |
Principal | ||||||||||||||||||
Interest | Maturity | Amount | ||||||||||||||||
Rate | Date | (000)(a) | Value | |||||||||||||||
Oil & Gas-(continued) | ||||||||||||||||||
Crestwood Holdings LLC, Term Loan (1 mo. USD LIBOR + 7.50%) | 10.01% | 03/06/2023 | $ | 5,546 | $ | 5,488,494 | ||||||||||||
Delek US Holdings, Inc., Term Loan (1 mo. USD LIBOR + 2.25%) | 4.75% | 03/31/2025 | 1,704 | 1,686,660 | ||||||||||||||
Encino Acquisition Partners Holdings, LLC, Second Lien Term Loan (1 mo. USD LIBOR + 6.75%)(d) | 9.24% | 10/29/2025 | 2,360 | 2,300,555 | ||||||||||||||
Fieldwood Energy LLC | 9.75% | 04/11/2023 | 8,689 | 7,110,435 | ||||||||||||||
First Lien Term Loan (1 mo. USD LIBOR + 5.25%) | 7.74% | 04/11/2022 | 4,536 | 4,150,490 | ||||||||||||||
Revolver Loan(d)(e) | 0.00% | 04/11/2021 | 27,701 | 27,424,096 | ||||||||||||||
Glass Mountain Pipeline Holdings, LLC, Term Loan (1 mo. USD LIBOR + 4.50%) | 7.00% | 12/23/2024 | 2,865 | 2,795,544 | ||||||||||||||
Gulf Finance, LLC, Term Loan B (3 mo. USD LIBOR + 5.25%) | 7.87% | 08/25/2023 | 8,503 | 6,866,202 | ||||||||||||||
HGIM Corp., Term Loan (3 mo. USD LIBOR + 6.00%) | 8.75% | 07/02/2023 | 3,301 | 3,273,097 | ||||||||||||||
Lucid Energy Group II Borrower, LLC, First Lien Term Loan (1 mo. USD LIBOR + 3.00%) | 5.49% | 02/17/2025 | 2,627 | 2,462,643 | ||||||||||||||
McDermott Technology (Americas), Inc., Term Loan B (1 mo. USD LIBOR + 5.00%) | 7.49% | 05/12/2025 | 8,162 | 7,874,894 | ||||||||||||||
Medallion Midland Acquisition, LLC, Term Loan (1 mo. USD LIBOR + 3.25%) | 5.74% | 10/30/2024 | 2,284 | 2,228,633 | ||||||||||||||
Moda Ingleside Energy Center LLC, Term Loan (1 mo. USD LIBOR + 3.25%) | 5.74% | 09/29/2025 | 1,132 | 1,134,044 | ||||||||||||||
Navitas Midstream Midland Basin, LLC, Term Loan (1 mo. USD LIBOR + 4.50%) | 6.99% | 12/13/2024 | 3,298 | 3,143,978 | ||||||||||||||
Osum Production Corp. (Canada), Term Loan (3 mo. USD LIBOR + 5.50%)(d) | 8.30% | 07/31/2020 | 4,637 | 4,196,764 | ||||||||||||||
Paragon Offshore Finance Co. (Cayman Islands), Term Loan | 0.00% | 07/16/2021 | 17 | 0 | ||||||||||||||
PetroleumGEO-Services ASA, Term Loan (3 mo. USD LIBOR + 2.50%) | 5.31% | 03/19/2021 | 6,814 | 6,587,959 | ||||||||||||||
Seadrill Operating L.P., Term Loan (3 mo. USD LIBOR + 6.00%) | 8.80% | 02/21/2021 | 16,781 | 14,079,322 | ||||||||||||||
Southcross Energy Partners, L.P., Term Loan (3 mo. USD LIBOR + 4.25%) | 7.05% | 08/04/2021 | 1,814 | 1,639,397 | ||||||||||||||
Tribune Resources, Inc., Term Loan (1 mo. USD LIBOR + 6.50%) | 9.02% | 03/30/2023 | 917 | 919,137 | ||||||||||||||
Weatherford International Ltd. (Bermuda), Term Loan (1 mo. USD LIBOR + 1.43%) | 3.93% | 07/13/2020 | 4,772 | 4,688,861 | ||||||||||||||
125,861,671 | ||||||||||||||||||
Publishing-0.94% | ||||||||||||||||||
Adtalem Global Education, Inc., Term Loan B (1 mo. USD LIBOR + 3.00%) | 5.49% | 04/11/2025 | 1,625 | 1,620,478 | ||||||||||||||
Ascend Learning, LLC, Term Loan (1 mo. USD LIBOR + 3.00%) | 5.49% | 07/12/2024 | 641 | 636,529 | ||||||||||||||
Cengage Learning, Inc., Term Loan B (1 mo. USD LIBOR + 4.25%) | 6.74% | 06/07/2023 | 7,834 | 7,263,217 | ||||||||||||||
Merrill Communications LLC, Term Loan (3 mo. USD LIBOR + 5.25%) | 8.00% | 06/01/2022 | 31 | 31,229 | ||||||||||||||
Nielsen Finance LLC, Term LoanB-4 (1 mo. USD LIBOR + 2.00%) | 4.52% | 10/04/2023 | 704 | 700,844 | ||||||||||||||
ProQuest LLC, Term Loan (1 mo. USD LIBOR + 3.25%) | 5.74% | 10/24/2021 | 1,515 | 1,513,866 | ||||||||||||||
Southern Graphics, Inc., First Lien Term Loan (1 mo. USD LIBOR + 3.25%) | 5.79% | 12/31/2022 | 3,080 | 2,805,660 | ||||||||||||||
Tribune Media Co., Term Loan C (1 mo. USD LIBOR + 3.00%) | 5.49% | 01/27/2024 | 6,343 | 6,351,323 | ||||||||||||||
20,923,146 | ||||||||||||||||||
Radio & Television-1.75% | ||||||||||||||||||
E.W. Scripps Co., Term Loan B (1 mo. USD LIBOR + 2.00%) | 4.49% | 10/02/2024 | 1,227 | 1,195,219 | ||||||||||||||
Gray Television, Inc. | 4.77% | 02/07/2024 | 576 | 573,394 | ||||||||||||||
Term Loan C (1 mo. USD LIBOR + 2.50%) | 4.98% | 01/02/2026 | 6,228 | 6,221,617 | ||||||||||||||
iHeartCommunications, Inc. | 0.00% | 01/30/2020 | 25,820 | 18,213,595 | ||||||||||||||
Term Loan E(h)(i) | 0.00% | 07/30/2019 | 1,521 | 1,072,597 | ||||||||||||||
Mission Broadcasting, Inc., Term LoanB-3 (1 mo. USD LIBOR + 2.25%) | 4.76% | 01/17/2024 | 300 | 297,088 | ||||||||||||||
NEP/NCP HoldCo, Inc., Second Lien Term Loan (1 mo. USD LIBOR + 7.00%) | 9.49% | 10/19/2026 | 1,718 | 1,687,601 | ||||||||||||||
Nexstar Broadcasting, Inc., Term LoanB-3 (1 mo. USD LIBOR + 2.25%) | 4.74% | 01/17/2024 | 1,658 | 1,640,266 | ||||||||||||||
Sinclair Television Group, Inc., Term Loan B (1 mo. USD LIBOR + 2.25%) | 4.75% | 01/03/2024 | 8,013 | 7,996,133 | ||||||||||||||
38,897,510 | ||||||||||||||||||
Retailers (except Food & Drug)-1.37% | ||||||||||||||||||
Bass Pro Group, LLC, Term Loan (1 mo. USD LIBOR + 5.00%) | 7.49% | 09/25/2024 | 8,660 | 8,655,923 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
17 | Invesco Floating Rate Fund |
Principal | ||||||||||||||||||
Interest | Maturity | Amount | ||||||||||||||||
Rate | Date | (000)(a) | Value | |||||||||||||||
Retailers (except Food & Drug)-(continued) | ||||||||||||||||||
Claire’s Stores, Inc. | 6.31% | 10/12/2022 | $ | 33 | $ | 32,817 | ||||||||||||
Term Loan (6 mo. USD LIBOR + 7.25%)(h) | 9.94% | 09/15/2038 | 109 | 167,737 | ||||||||||||||
Fossil Group, Inc., Term Loan (1 wk. USD LIBOR + 8.00%) | 10.42% | 12/31/2020 | 914 | 915,918 | ||||||||||||||
Fullbeauty Brands Holdings Corp. | 12.74% | 02/07/2022 | 762 | 767,333 | ||||||||||||||
First Lien Term Loan (1 mo. USD LIBOR + 4.75%) | 11.74% | 10/14/2022 | 5,429 | 1,818,692 | ||||||||||||||
National Vision, Inc. | 0.00% | 03/13/2019 | 3,004 | 2,763,997 | ||||||||||||||
First Lien Term Loan (1 mo. USD LIBOR + 2.50%) | 4.99% | 11/20/2024 | 837 | 835,599 | ||||||||||||||
Payless, Inc. | 10.78% | 02/10/2022 | 1,535 | 759,742 | ||||||||||||||
Term LoanA-2(i) | 11.78% | 08/10/2022 | 2,881 | 849,893 | ||||||||||||||
Petco Animal Supplies, Inc., Term Loan (3 mo. USD LIBOR + 3.25%) | 5.99% | 01/26/2023 | 9,032 | 7,102,277 | ||||||||||||||
Savers, Inc., Term Loan (3 mo. USD LIBOR + 3.75%) | 6.52% | 07/09/2019 | 4,921 | 4,689,339 | ||||||||||||||
Vivarte (France), PIK Term Loan, 7.00% PIK Rate, 4.00% Cash Rate(g) | 7.00% | 10/29/2019 | EUR | 1,178 | 922,330 | |||||||||||||
30,281,597 | ||||||||||||||||||
Surface Transport-1.09% | ||||||||||||||||||
Commercial Barge Line Co., First Lien Term Loan (1 mo. USD LIBOR + 8.75%) | 11.25% | 11/12/2020 | 4,047 | 2,810,981 | ||||||||||||||
Kenan Advantage Group, Inc. | 5.49% | 07/29/2022 | 1,844 | 1,816,007 | ||||||||||||||
Term Loan (1 mo. USD LIBOR + 3.00%) | 5.49% | 07/29/2022 | 6,941 | 6,836,845 | ||||||||||||||
Odyssey Logistics & Technology Corp., First Lien Term Loan | 6.49% | 10/12/2024 | 816 | 812,191 | ||||||||||||||
PODS LLC, Term LoanB-4 (1 mo. USD LIBOR + 2.75%) | 5.27% | 12/06/2024 | 7,413 | 7,387,868 | ||||||||||||||
U.S. Shipping Corp., Term LoanB-2 (1 mo. USD LIBOR + 4.25%) | 6.75% | 06/26/2021 | 3,184 | 3,075,253 | ||||||||||||||
XPO Logistics, Inc., Term Loan B (1 mo. USD LIBOR + 2.00%) | 4.49% | 02/24/2025 | 1,448 | 1,437,051 | ||||||||||||||
24,176,196 | ||||||||||||||||||
Telecommunications-7.96% | ||||||||||||||||||
CenturyLink, Inc., Term Loan B (1 mo. USD LIBOR + 2.75%) | 5.24% | 01/31/2025 | 22,116 | 21,810,428 | ||||||||||||||
Colorado Buyer, Inc., Term Loan (1 mo. USD LIBOR + 3.00%) | 5.52% | 05/01/2024 | 3,602 | 3,564,807 | ||||||||||||||
Communications Sales & Leasing, Inc., Term Loan B (1 mo. USD LIBOR + 3.00%) | 5.49% | 10/24/2022 | 7,245 | 6,710,601 | ||||||||||||||
Consolidated Communications, Inc., Term Loan (1 mo. USD LIBOR + 3.00%) | 5.50% | 10/04/2023 | 12,642 | 12,349,889 | ||||||||||||||
Frontier Communications Corp. | 7.38% | 10/12/2021 | 1,344 | 1,337,268 | ||||||||||||||
Term LoanB-1 (1 mo. USD LIBOR + 3.75%) | 6.25% | 06/15/2024 | 1,805 | 1,744,910 | ||||||||||||||
Hargray Communications Group, Inc., Term Loan (1 mo. USD LIBOR + 3.00%) | 5.49% | 05/16/2024 | 66 | 65,496 | ||||||||||||||
Intelsat Jackson Holdings S.A. (Luxembourg) | 6.23% | 11/27/2023 | 1,749 | 1,751,066 | ||||||||||||||
Term LoanB-5 | 6.63% | 01/02/2024 | 4,187 | 4,248,229 | ||||||||||||||
Level 3 Financing, Inc., Term Loan B (1 mo. USD LIBOR + 2.25%) | 4.73% | 02/22/2024 | 14,582 | 14,552,136 | ||||||||||||||
Lumentum Holdings, Inc., Term Loan (1 mo. USD LIBOR + | 4.99% | 12/10/2025 | 193 | 191,999 | ||||||||||||||
MLN US Holdco LLC, Term Loan B (1 mo. USD LIBOR + 4.50%) | 7.00% | 11/30/2025 | 3,090 | 3,077,685 | ||||||||||||||
MTN Infrastructure TopCo, Inc., Term Loan (1 mo. USD LIBOR + 3.00%) | 5.49% | 11/15/2024 | 5,065 | 5,047,180 | ||||||||||||||
Odyssey Investissement S.A.S., Term Loan B (3 mo. EURIBOR + 3.75%) | 3.75% | 04/25/2025 | EUR | 3,213 | 3,663,487 | |||||||||||||
Radiate Holdco, LLC, Term Loan (1 mo. USD LIBOR + 3.00%) | 5.49% | 02/01/2024 | 6,730 | 6,703,719 | ||||||||||||||
SBA Senior Finance II LLC, Term Loan (1 mo. USD LIBOR + 2.00%) | 4.50% | 04/11/2025 | 10,688 | 10,602,687 | ||||||||||||||
Sprint Communications, Inc. | 5.00% | 02/02/2024 | 22,948 | 22,709,313 | ||||||||||||||
Term Loan (1 mo. USD LIBOR + 3.00%) | 5.50% | 02/02/2024 | 9,041 | 8,959,519 | ||||||||||||||
Syniverse Holdings, Inc., Term Loan C (1 mo. USD LIBOR + 5.00%) | 7.49% | 03/09/2023 | 6,352 | 6,021,580 | ||||||||||||||
Telesat LLC, Term LoanB-4 (3 mo. USD LIBOR + 2.50%) | 5.31% | 11/17/2023 | 15,160 | 15,153,854 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
18 | Invesco Floating Rate Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||||||
Telecommunications-(continued) | ||||||||||||||||||||
U.S. TelePacific Corp., Term Loan (3 mo. USD LIBOR + 5.00%) | 7.81% | 05/02/2023 | $ | 6,129 | $ | 6,033,752 | ||||||||||||||
Windstream Services, LLC | 8.49% | 03/29/2021 | 11,780 | 11,452,680 | ||||||||||||||||
Term LoanB-7 (1 mo. USD LIBOR + 3.25%) | 5.74% | 02/17/2024 | 5,195 | 4,980,421 | ||||||||||||||||
Zayo Group,LLC | 4.49% | 01/19/2021 | 884 | 882,435 | ||||||||||||||||
Term LoanB-2 (3 mo. USD LIBOR + 2.25%) | 4.74% | 01/19/2024 | 2,930 | 2,920,480 | ||||||||||||||||
176,535,621 | ||||||||||||||||||||
Utilities-6.97% | ||||||||||||||||||||
AES Corp. (The), Term Loan (3 mo. USD LIBOR + 1.75%) | 4.38% | 05/24/2022 | 217 | 217,601 | ||||||||||||||||
AI Alpine AT BidCo GmbH (Austria) | 3.50% | 10/25/2025 | EUR | 962 | 1,086,605 | |||||||||||||||
Term Loan B (3 mo. USD LIBOR + 3.25%)(d) | 5.99% | 10/25/2025 | 34 | 33,576 | ||||||||||||||||
Aria Energy Operating LLC, Term Loan (1 mo. USD LIBOR + 4.50%) | 7.00% | 05/27/2022 | 922 | 923,436 | ||||||||||||||||
Brookfield WEC Holdings, Inc. | 6.24% | 08/01/2025 | 9,962 | 9,994,180 | ||||||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 6.75%) | 9.25% | 08/03/2026 | 1,924 | 1,932,239 | ||||||||||||||||
Calpine Construction Finance Co., L.P., Term Loan (1 mo. USD LIBOR + 2.50%) | 4.99% | 01/15/2025 | 10,670 | 10,590,214 | ||||||||||||||||
Calpine Corp. | 5.31% | 01/15/2023 | 6,345 | 6,326,228 | ||||||||||||||||
Term Loan (3 mo. USD LIBOR + 2.50%) | 5.31% | 05/31/2023 | 4,690 | 4,671,839 | ||||||||||||||||
Term Loan (3 mo. USD LIBOR + 2.50%) | 5.31% | 01/15/2024 | 10,780 | 10,735,120 | ||||||||||||||||
Eastern Power, LLC, Term Loan (1 mo. USD LIBOR + 3.75%) | 6.24% | 10/02/2023 | 6,173 | 6,148,064 | ||||||||||||||||
Granite Acquisition, Inc. | 6.30% | 12/17/2021 | 3,919 | 3,925,532 | ||||||||||||||||
First Lien Term Loan C (3 mo. USD LIBOR + 3.50%) | 6.30% | 12/17/2021 | 620 | 621,440 | ||||||||||||||||
Second Lien Term Loan (3 mo. USD LIBOR + 7.25%) | 10.06% | 12/19/2022 | 961 | 959,519 | ||||||||||||||||
Lightstone Holdco LLC | 6.24% | 01/30/2024 | 10,242 | 10,055,279 | ||||||||||||||||
Term Loan C (1 mo. USD LIBOR + 3.75%) | 6.24% | 01/30/2024 | 565 | 554,353 | ||||||||||||||||
Nautilus Power, LLC, Term Loan (1 mo. USD LIBOR + 4.50%) | 6.74% | 05/16/2024 | 4,095 | 4,096,549 | ||||||||||||||||
NRG Energy, Inc., Term Loan (1 mo. USD LIBOR + 1.75%) | 4.24% | 06/30/2023 | 29,617 | 29,537,469 | ||||||||||||||||
Pacific Gas and Electric Co. | - | 01/29/2020 | 1,822 | 1,820,666 | ||||||||||||||||
Term Loan(f) | - | 12/31/2020 | 5,466 | 5,461,999 | ||||||||||||||||
PowerTeam Services, LLC, First Lien Term Loan (3 mo. USD LIBOR + 3.25%) | 6.07% | 03/06/2025 | 2,133 | 2,053,423 | ||||||||||||||||
Revere Power, LLC | - | 02/01/2026 | 2,154 | 2,137,836 | ||||||||||||||||
Term Loan C(f) | - | 02/01/2026 | 339 | 336,289 | ||||||||||||||||
Southeast PowerGen LLC, Term Loan B (1 mo. USD LIBOR + 3.50%) | 6.00% | 12/02/2021 | 561 | 537,726 | ||||||||||||||||
USIC Holding, Inc., First Lien Term Loan (1 mo. USD LIBOR + 3.25%) | 5.74% | 12/08/2023 | 3,315 | 3,283,008 | ||||||||||||||||
Vistra Operations Co. LLC | 4.49% | 08/04/2023 | 16,243 | 16,214,223 | ||||||||||||||||
Term Loan (1 mo. USD LIBOR + 2.00%) | 4.49% | 12/31/2025 | 20,287 | 20,225,096 | ||||||||||||||||
154,479,509 | ||||||||||||||||||||
Total Variable Rate Senior Loan Interests (Cost $2,040,769,978) | 1,999,117,720 | |||||||||||||||||||
U.S. Dollar Denominated Bonds & Notes-4.84% | ||||||||||||||||||||
Aerospace & Defense-0.84% | ||||||||||||||||||||
TransDigm, Inc. Sr. Sec. Notes(j) | 6.25% | 03/15/2026 | 18,023 | 18,518,632 | ||||||||||||||||
Air Transport-0.19% | ||||||||||||||||||||
Mesa Airlines, Inc. Class B | 5.75% | 07/15/2025 | 4,210 | 4,181,995 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
19 | Invesco Floating Rate Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||||||
Automotive-0.11% | ||||||||||||||||||||
Schaeffler AG (Germany)(j) | 4.12% | 09/15/2021 | $ | 640 | $ | 636,800 | ||||||||||||||
Schaeffler AG (Germany)(j) | 4.75% | 09/15/2026 | 1,965 | 1,826,861 | ||||||||||||||||
2,463,661 | ||||||||||||||||||||
Business Equipment & Services-0.06% | ||||||||||||||||||||
Dun & Bradstreet Corp. (The)(j) | 6.88% | 08/15/2026 | 1,368 | 1,375,298 | ||||||||||||||||
Cable & Satellite Television-1.33% | ||||||||||||||||||||
Altice Financing S.A. Sr. Sec. Gtd. First Lien Bonds (Luxembourg)(j) | 7.50% | 05/15/2026 | 10,469 | 10,154,930 | ||||||||||||||||
Altice Financing S.A. Sr. Sec. Gtd. First Lien Notes (Luxembourg)(j) | 6.63% | 02/15/2023 | 851 | 876,521 | ||||||||||||||||
CSC Holdings, LLC Sr. Unsec. Deb.(j) | 5.50% | 05/15/2026 | 10,933 | 11,124,327 | ||||||||||||||||
Numericable-SFR S.A. (France)(j) | 8.12% | 02/01/2027 | 2,544 | 2,563,080 | ||||||||||||||||
Numericable-SFR S.A. Sr. Sec. Gtd. First Lien Notes (France)(j) | 7.37% | 05/01/2026 | 3,732 | 3,679,267 | ||||||||||||||||
Virgin Media Bristol LLC Sr. Sec. Gtd. First Lien Notes (United Kingdom)(j) | 5.50% | 08/15/2026 | 1,027 | 1,024,433 | ||||||||||||||||
29,422,558 | ||||||||||||||||||||
Chemicals & Plastics-0.19% | ||||||||||||||||||||
Alpha US Bidco, Inc. (Germany)(j) | 8.75% | 06/01/2023 | 1,560 | 1,501,500 | ||||||||||||||||
Avantor, Inc.(j) | 6.00% | 10/01/2024 | 2,731 | 2,792,447 | ||||||||||||||||
4,293,947 | ||||||||||||||||||||
Containers & Glass Products-0.24% | ||||||||||||||||||||
Ardagh Glass Finance PLC (Ireland)(j) | 4.62% | 05/15/2023 | 1,643 | 1,659,430 | ||||||||||||||||
Ardagh Glass Finance PLC (Ireland)(j) | 4.25% | 09/15/2022 | 1,695 | 1,696,187 | ||||||||||||||||
Reynolds Group Holdings, Inc. (3 mo. USD LIBOR + 3.50%)(j)(k) | 6.29% | 07/15/2021 | 1,868 | 1,884,345 | ||||||||||||||||
Reynolds Group Holdings, Inc. Sr. Sec. Gtd. First Lien Global Notes | 5.75% | 10/15/2020 | 130 | 130,282 | ||||||||||||||||
5,370,244 | ||||||||||||||||||||
Electronics & Electrical-0.70% | ||||||||||||||||||||
Blackboard, Inc.(j) | 9.75% | 10/15/2021 | 4,356 | 3,201,660 | ||||||||||||||||
CommScope, Inc. Sr. Sec. Notes(j) | 6.00% | 03/01/2026 | 7,119 | 7,305,874 | ||||||||||||||||
CommScope, Inc. Unsec. Notes(j) | 8.25% | 03/01/2027 | 2,177 | 2,264,189 | ||||||||||||||||
Dell International LLC/EMC Corp. Sr. Sec. Gtd. First Lien Notes(j) | 5.45% | 06/15/2023 | 1,385 | 1,456,448 | ||||||||||||||||
Riverbed Technology, Inc.(j) | 8.87% | 03/01/2023 | 1,853 | 1,301,473 | ||||||||||||||||
15,529,644 | ||||||||||||||||||||
Financial Intermediaries-0.09% | ||||||||||||||||||||
Cabot Financial S.A. (United Kingdom) | 6.50% | 04/01/2021 | GBP | 1,500 | 1,979,688 | |||||||||||||||
Health Care-0.45% | ||||||||||||||||||||
Community Health Systems, Inc. Sr. Sec. Notes | 8.00% | 03/15/2026 | 9,997 | 9,865,339 | ||||||||||||||||
Industrial Equipment-0.01% | ||||||||||||||||||||
Altra Industrial Motion Corp. Sr. Unsec. Gtd.Notes(j) | 6.13% | 10/01/2026 | 287 | 294,175 | ||||||||||||||||
Lodging & Casinos-0.08% | ||||||||||||||||||||
ESH Hospitality, Inc.(j) | 5.25% | 05/01/2025 | 1,390 | 1,386,525 | ||||||||||||||||
VICI Properties 1 LLC | 8.00% | 10/15/2023 | 315 | 346,401 | ||||||||||||||||
1,732,926 | ||||||||||||||||||||
Nonferrous Metals & Minerals-0.13% | ||||||||||||||||||||
TiZir Ltd. (United Kingdom)(j) | 9.50% | 07/19/2022 | 2,748 | 2,856,222 | ||||||||||||||||
Oil & Gas-0.01% | ||||||||||||||||||||
Pacific Drilling S.A. Sr. Sec. Bonds(j) | 8.38% | 10/01/2023 | 145 | 146,088 | ||||||||||||||||
Publishing-0.03% | ||||||||||||||||||||
Clear Channel Worldwide Holdings, Inc. Unsec. Sub.Gtd.Notes(j) | 9.25% | 02/15/2024 | 730 | 767,413 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
20 | Invesco Floating Rate Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Radio & Television-0.24% | ||||||||||||||||
Clear Channel International B.V.(j) | 8.75% | 12/15/2020 | $ | 5,141 | $ | 5,288,804 | ||||||||||
Steel-0.00% | ||||||||||||||||
ERP Iron Ore, LLC 1.50 PIK Rate, 10.30% Cash Rate(d)(g) | 8.00% | 12/31/2019 | 56 | 39,038 | ||||||||||||
Telecommunications-0.11% | ||||||||||||||||
Communications Sales & Leasing, Inc.(j) | 6.00% | 04/15/2023 | 1,200 | 1,116,000 | ||||||||||||
Goodman Networks, Inc. | 8.00% | 05/11/2022 | 2,535 | 1,305,469 | ||||||||||||
Windstream Services, LLC(h)(j) | 9.00% | 06/30/2025 | 12 | 7,260 | ||||||||||||
2,428,729 | ||||||||||||||||
Utilities-0.03% | ||||||||||||||||
Calpine Corp.(j) | 5.25% | 06/01/2026 | 678 | 666,135 | ||||||||||||
Total U.S. Dollar Denominated Bonds & Notes (Cost $113,496,560) | 107,220,536 | |||||||||||||||
Shares | ||||||||||||||||
Common Stocks & Other Equity Interests-2.01%(l) | ||||||||||||||||
Aerospace & Defense-0.10% | ||||||||||||||||
IAP Worldwide Services (Acquired07/18/2014-08/18/2014; Cost $145,528)(d)(m) | 134 | 2,197,222 | ||||||||||||||
Automotive-0.02% | ||||||||||||||||
Dayco Products, LLC(m) | 3,261 | 120,249 | ||||||||||||||
Dayco Products, LLC(m) | 3,266 | 120,434 | ||||||||||||||
Transtar Holding Co., Class A(d)(m) | 3,149,478 | 236,211 | ||||||||||||||
476,894 | ||||||||||||||||
Building & Development-0.07% | ||||||||||||||||
Lake at Las Vegas Joint Venture, LLC, Class A (Acquired04/28/2010-07/15/2010; | 518 | 0 | ||||||||||||||
Lake at Las Vegas Joint Venture, LLC, Class B (Acquired 06/30/2010; | 4 | 0 | ||||||||||||||
Masonite International Corp.(m) | 27,093 | 1,502,307 | ||||||||||||||
1,502,307 | ||||||||||||||||
Business Equipment & Services-0.03% | ||||||||||||||||
Checkout Holding Corp.(d) | 15,070 | 339,075 | ||||||||||||||
EmployBridge Holding Co. (Acquired05/16/2014-01/20/2015; | 43,971 | 420,495 | ||||||||||||||
759,570 | ||||||||||||||||
Cable & Satellite Television-0.13% | ||||||||||||||||
Ion Media Networks, Inc., Class A (Acquired01/17/2006-12/17/2009; | 4,471 | 2,850,262 | ||||||||||||||
Chemicals & Plastics-0.00% | ||||||||||||||||
Lyondell Chemical Co., Class A | 218 | 18,643 | ||||||||||||||
Drugs-0.00% | ||||||||||||||||
BPA Laboratories, Class A, Wts. expiring 04/29/2024 (Acquired 04/29/2014; | 3,490 | 0 | ||||||||||||||
BPA Laboratories, Class B, Wts. expiring 04/29/2024 (Acquired 04/29/2014; | 5,595 | 0 | ||||||||||||||
0 | ||||||||||||||||
Food Products-0.00% | ||||||||||||||||
QCE LLC (Acquired 06/30/2014; Cost $52)(d)(m) | 17 | 0 | ||||||||||||||
Health Care-0.00% | ||||||||||||||||
New Millennium Holdco(m) | 259,087 | 25,391 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
21 | Invesco Floating Rate Fund |
Shares | Value | |||||||
Lodging & Casinos-0.14% | ||||||||
Caesars Entertainment Operating Co., LLC(m) | 83,880 | $ | 723,046 | |||||
Twin River Management Group, Inc.(m) | 18,663 | 2,388,864 | ||||||
3,111,910 | ||||||||
Oil & Gas-0.84% | ||||||||
AF Global, Inc. (Acquired 06/08/2017; Cost $66,943)(d)(m) | 1,049 | 58,744 | ||||||
CJ Holding Co.(m) | 47,780 | 825,161 | ||||||
Fieldwood Energy LLC(m) | 67,619 | 2,287,787 | ||||||
HGIM Corp.(d)(m) | 6,310 | 230,315 | ||||||
HGIM Corp., Wts. expiring 07/02/2043(d)(m) | 28,193 | 1,029,044 | ||||||
Pacific Drilling S.A.(h)(m) | 178,023 | 2,723,752 | ||||||
Paragon Offshore Finance Co., Class A (Cayman Islands)(h)(m) | 4,595 | 4,740 | ||||||
Paragon Offshore Finance Co., Class B (Cayman Islands)(h)(m) | 2,298 | 84,451 | ||||||
Samson Investment Co.(m) | 261,209 | 5,909,854 | ||||||
Transocean Ltd.(m) | 428,980 | 3,504,767 | ||||||
Tribune Resources, Inc., First Lien Wts. expiring 04/03/2023 (Acquired 04/03/2018; | 170,533 | 5,116 | ||||||
Tribune Resources, Inc.(m) | 658,667 | 1,888,069 | ||||||
18,551,800 | ||||||||
Publishing-0.11% | ||||||||
F&W Publications, Inc. (Acquired09/17/2007-11/19/2009; Cost $357,143)(d)(m) | 288 | 173 | ||||||
Merrill Communications LLC, Class A (Acquired 03/08/2013; Cost $307,685)(m) | 133,776 | 2,474,856 | ||||||
Tribune Publishing Co.(m) | 2,262 | 27,279 | ||||||
2,502,308 | ||||||||
Retailers (except Food & Drug)-0.05% | ||||||||
Claire’s Stores, Inc.(h) | 1,210,692 | 545,527 | ||||||
Payless, Inc.(m) | 146,073 | 474,737 | ||||||
1,020,264 | ||||||||
Surface Transport-0.00% | ||||||||
U.S. Shipping Corp. (Acquired09/28/2007-09/30/2009; Cost $0)(d)(m) | 6,189 | 62 | ||||||
U.S. Shipping Corp., CPR (Acquired09/28/2007-09/30/2009; Cost $87,805)(d)(m) | 87,805 | 74,634 | ||||||
74,696 | ||||||||
Telecommunications-0.02% | ||||||||
Consolidated Communications, Inc. | 32,797 | 325,674 | ||||||
Goodman Networks, Inc. (Acquired 05/31/2017; Cost $1,595)(d)(m) | 159,473 | 0 | ||||||
325,674 | ||||||||
Utilities-0.50% | ||||||||
Bicent Power, LLC, Series A, Wts. expiring 08/21/2022 (Acquired 08/21/2012; | 101 | 0 | ||||||
Bicent Power, LLC, Series B, Wts. expiring 08/21/2022 (Acquired 08/21/2012; | 165 | 0 | ||||||
Vistra Operations Co. LLC | 410,978 | 10,701,867 | ||||||
Vistra Operations Co. LLC, Rts. expiring 12/31/2046(m) | 410,978 | 307,823 | ||||||
Vistra Operations Co. LLC (Acquired 10/03/2016; Cost $316,284)(d)(m) | 672,945 | 168,236 | ||||||
11,177,926 | ||||||||
Total Common Stocks & Other Equity Interests (Cost $58,654,860) | 44,594,867 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
22 | Invesco Floating Rate Fund |
Interest Rate | Maturity Date | Principal (000)(a) | Value | |||||||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes-1.44% | ||||||||||||||||||||
Automotive-0.13% | ||||||||||||||||||||
Federal-Mogul Holdings Corp. | 5.00% | 07/15/2024 | EUR | 538 | $ | 642,980 | ||||||||||||||
Federal-Mogul Holdings Corp. (3 mo. EURIBOR + 4.88%)(k) | 4.88% | 04/15/2024 | EUR | 2,000 | 2,300,969 | |||||||||||||||
2,943,949 | ||||||||||||||||||||
Building & Development-0.11% | ||||||||||||||||||||
Haya Finance 2017 S.A. (Spain) (3 mo. EURIBOR + 5.13%)(k) | 5.13% | 11/15/2022 | EUR | 291 | 307,272 | |||||||||||||||
Haya Finance 2017 S.A. (Spain) | 5.25% | 11/15/2022 | EUR | 344 | 361,739 | |||||||||||||||
LSF10 Wolverine Investment SCA (Denmark) | 5.00% | 03/15/2024 | EUR | 319 | 364,619 | |||||||||||||||
LSF10 Wolverine Investment SCA (Denmark) (3 mo. EURIBOR + 4.63%)(k) | 4.63% | 03/15/2024 | EUR | 1,142 | 1,302,539 | |||||||||||||||
2,336,169 | ||||||||||||||||||||
Business Equipment & Services-0.10% | ||||||||||||||||||||
Dream Secured Bondco AB (Sweden) | 3.50% | 12/01/2023 | EUR | 1,266 | 1,464,703 | |||||||||||||||
Nexi S.p.A. (Italy) (3 mo. EURIBOR + 3.63%)(k) | 3.63% | 05/01/2023 | EUR | 455 | 522,094 | |||||||||||||||
Refinitiv US Holdings, Inc. REGS, Sr. Unsec. Bonds(j) | 4.50% | 05/15/2026 | EUR | 132 | 149,606 | |||||||||||||||
Refinitiv US Holdings, Inc. REGS, Sr. Unsec. Bonds(j) | 6.88% | 11/15/2026 | EUR | 167 | 182,531 | |||||||||||||||
2,318,934 | ||||||||||||||||||||
Cable & Satellite Television-0.21% | ||||||||||||||||||||
Altice Financing S.A. (Luxembourg) | 4.75% | 01/15/2028 | EUR | 1,299 | 1,257,939 | |||||||||||||||
Altice France S.A. (France) | 5.88% | 02/01/2027 | EUR | 2,984 | 3,479,166 | |||||||||||||||
4,737,105 | ||||||||||||||||||||
Containers & Glass Products-0.02% | ||||||||||||||||||||
Ardagh Glass Finance PLC (Luxembourg) | 6.63% | 09/15/2023 | EUR | 423 | 488,478 | |||||||||||||||
Financial Intermediaries-0.38% | ||||||||||||||||||||
AnaCap Financial Europe S.A. SICAV-RAIF (Luxembourg) (3 mo. EURIBOR + 5.00%)(k) | 5.00% | 08/01/2024 | EUR | 500 | 448,013 | |||||||||||||||
Cabot Financial S.A. (United Kingdom) (3 mo. EURIBOR + 5.88%)(k) | 5.88% | 11/15/2021 | EUR | 908 | 1,029,757 | |||||||||||||||
Garfunkelux Holdco 3 S.A. (Luxembourg) (3 mo. EURIBOR + 4.50%)(k) | 4.50% | 09/01/2023 | EUR | 336 | 316,513 | |||||||||||||||
Garfunkelux Holdco 3 S.A. (Luxembourg) (3 mo. EURIBOR + 3.50%)(k) | 3.50% | 09/01/2023 | EUR | 1,402 | 1,289,267 | |||||||||||||||
Garfunkelux Holdco 3 S.A. REGS, Sr. Sec. Gtd. First Lien Euro Notes (Luxembourg)(j) | 8.50% | 11/01/2022 | GBP | 996 | 1,162,109 | |||||||||||||||
Nemean Bondco PLC (Jersey) | 7.37% | 02/01/2024 | GBP | 1,370 | 1,718,738 | |||||||||||||||
Nemean Bondco PLC (Jersey) (3 mo. GBP LIBOR + 6.50%)(k) | 7.41% | 02/01/2023 | GBP | 1,955 | 2,417,015 | |||||||||||||||
8,381,412 | ||||||||||||||||||||
Health Care-0.08% | ||||||||||||||||||||
IDH Finance PLC (United Kingdom) (3 mo. GBP LIBOR + 6.00%)(k) | 6.87% | 08/15/2022 | GBP | 1,500 | 1,666,227 | |||||||||||||||
Home Furnishings-0.33% | ||||||||||||||||||||
International Design Group S.p.A. REGS, Sr. Sec. Bonds (Italy) (3 mo. EURIBOR + 6.00%)(j)(k) | 6.00% | 11/15/2025 | EUR | 810 | 898,301 | |||||||||||||||
International Design Group S.p.A. REGS, Sr. Sec. Bonds (Italy) (3 mo. EURIBOR + 6.50%)(j)(k) | 6.50% | 11/15/2025 | EUR | 648 | 729,137 | |||||||||||||||
Shop Direct Funding PLC (United Kingdom) | 7.75% | 11/15/2022 | GBP | 4,711 | 5,615,329 | |||||||||||||||
7,242,767 | ||||||||||||||||||||
Lodging & Casinos-0.08% | ||||||||||||||||||||
Travelodge Hotels Ltd. (United Kingdom) (3 mo. GBP LIBOR + 4.88%)(k) | 5.74% | 05/15/2023 | GBP | 1,400 | 1,844,801 | |||||||||||||||
TotalNon-U.S. Dollar Denominated Bonds & Notes (Cost $33,416,050) | 31,959,842 | |||||||||||||||||||
Structured Products-0.30% | ||||||||||||||||||||
Clontarf Park CLO, Series2017-1A, Class D (3 mo. EURIBOR + 5.10%)(j)(k) | 5.10% | 08/05/2030 | EUR | 387 | 406,990 | |||||||||||||||
NewStar Berkeley Fund CLO LLC, Series2016-1A, Class D (3 mo. USD LIBOR + 5.10%)(j)(k) | 7.87% | 10/25/2028 | $ | 2,899 | 2,856,356 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
23 | Invesco Floating Rate Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
OCP Euro CLO (Ireland), | 5.35 | % | 06/18/2030 | EUR | 100 | $ | 108,781 | |||||||||
| ||||||||||||||||
Series2017-2, Class E (3 mo. EURIBOR + 5.00%)(j)(k) | 5.00 | % | 01/15/2032 | EUR | 437 | 470,969 | ||||||||||
| ||||||||||||||||
Octagon Investment Partners XIX Ltd., Series2014-1A, Class E (3 mo. USD LIBOR + 4.85%)(j)(k) | 7.64 | % | 04/15/2026 | $ | 2,920 | 2,832,509 | ||||||||||
| ||||||||||||||||
Total Structured Products (Cost $6,630,857) | 6,675,605 | |||||||||||||||
| ||||||||||||||||
Shares | ||||||||||||||||
Preferred Stocks-0.01% | ||||||||||||||||
Retailers (except Food & Drug)-0.00% | ||||||||||||||||
Claire’s Stores, Inc.(h) | 183 | 29,738 | ||||||||||||||
| ||||||||||||||||
Vivarte (France) (Acquired 01/12/2018; Cost $0)(d)(m) | 7,780 | 0 | ||||||||||||||
| ||||||||||||||||
Vivarte (France), Class A Preference Shares (Acquired 01/12/2018; | 259 | 0 | ||||||||||||||
| ||||||||||||||||
Vivarte (France), Class B Preference Shares (Acquired 01/12/2018; | 259 | 0 | ||||||||||||||
| ||||||||||||||||
29,738 | ||||||||||||||||
| ||||||||||||||||
Telecommunications-0.01% | ||||||||||||||||
Goodman Networks, Inc., SeriesA-1 (Acquired 05/31/2017; | 189,735 | 142,301 | ||||||||||||||
| ||||||||||||||||
Total Preferred Stocks (Cost $111,236) | 172,039 | |||||||||||||||
| ||||||||||||||||
Money Market Funds-2.20% | ||||||||||||||||
Invesco Government & Agency Portfolio-Institutional Class, 2.30%(n) | 17,089,553 | 17,089,553 | ||||||||||||||
| ||||||||||||||||
Invesco Liquid Assets Portfolio-Institutional Class, 2.51%(n) | 12,206,891 | 12,210,553 | ||||||||||||||
| ||||||||||||||||
Invesco Treasury Portfolio-Institutional Class, 2.29%(n) | 19,531,161 | 19,531,161 | ||||||||||||||
| ||||||||||||||||
Total Money Market Funds (Cost $48,831,267) | 48,831,267 | |||||||||||||||
| ||||||||||||||||
TOTAL INVESTMENTS IN SECURITIES-100.98% (Cost $2,301,910,808) | 2,238,571,876 | |||||||||||||||
| ||||||||||||||||
OTHER ASSETS LESS LIABILITIES-(0.98)% | (21,679,259 | ) | ||||||||||||||
| ||||||||||||||||
NET ASSETS-100.00% | $ | 2,216,892,617 | ||||||||||||||
|
Investment Abbreviations:
CHF | - Swiss Franc | |
CLO | - Collateralized Loan Obligation | |
Deb. | - Debentures | |
EUR | - Euro | |
EURIBOR | - Euro Interbank Offered Rate | |
GBP | - British Pound Sterling | |
Gtd. | - Guaranteed | |
LIBOR | - London Interbank Offered Rate | |
PIK | -Pay-in-Kind | |
REGS | - Regulation S | |
Rts. | - Rights | |
Sec. | - Secured | |
Sr. | - Senior | |
Sub. | - Subordinated | |
Unsec. | - Unsecured | |
USD | - U.S. Dollar | |
Wts. | - Warrants |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
24 | Invesco Floating Rate Fund |
Notes to Schedule of Investment
(a) | Principal amounts are denominated in U.S. dollars unless otherwise noted. |
(b) | Variable rate senior loan 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 any accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the variable rate senior loan interests will have an expected average life of three to five years. |
(c) | Variable rate senior loan interests are, at present, not readily marketable, not registered under the Securities Act of 1933, as amended (the “1933 Act”), and may be subject to contractual and legal restrictions on sale. Variable rate senior loan interests in the Fund’s portfolio generally have variable rates which adjust to a base, such as the London Interbank Offered Rate (“LIBOR”), on set dates, typically every 30 days, but not greater than one year, and/or have interest rates that float at margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank. |
(d) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(e) | All or a portion of this holding is subject to unfunded loan commitments. The state interest rate reflects the weighted average of the reference rate and spread for the funded portion, if any, and the commitment fees on the portion of the loan that is unfunded. See Note 7. |
(f) | This variable rate interest will settle after February 28, 2019, at which time the interest rate will be determined. |
(g) | All or a portion of this security isPay-in-Kind.Pay-in-Kind securities pay interest income in the form of securities. |
(h) | The borrower has filed for protection in federal bankruptcy court. |
(i) | Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The aggregate value of these securities at February 28, 2019 was $20,895,827, which represented less than 1% of the Fund’s Net Assets. |
(j) | Security purchased or received in a transaction exempt from registration under the 1933 Act. 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 28, 2019 was $99,169,613, which represented 4.47% of the Fund’s Net Assets. |
(k) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2019. |
(l) | Acquired through the restructuring of senior loans. |
(m) | Non-income producing security. |
(n) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the7-day SEC standardized yield as of February 28, 2019. |
Portfolio Composition*†
By credit quality, based on total investments
as of February 28, 2019
BBB | 0.10 | % | ||
BBB- | 7.5 | |||
BB+ | 4.9 | |||
BB | 13.4 | |||
BB- | 13.3 | |||
B+ | 16.3 | |||
B | 21.1 | |||
B- | 8.8 | |||
CCC+ | 2.3 | |||
CCC | 1.5 | |||
CCC- | 0.2 | |||
CC | 0.4 | |||
D | 1.1 | |||
Not-Rated | 7.1 | |||
Equity | 2 |
† | Source: Standard & Poor’s. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice.“Non-Rated” indicates the debtor was not rated, and should not be interpreted as indicating low quality. For more information on Standard & Poor’s rating methodology, please visit standardandpoors.com and select “Understanding Ratings” under Rating Resources on the homepage. |
* | Excluding money market fund holdings. |
Open Forward Foreign Currency Contracts | ||||||||||||||
Settlement |
Contract to | Unrealized Appreciation | ||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||
Currency Risk | ||||||||||||||
03/15/2019 | Bank of America, N.A. | USD 22,812,583 | EUR 20,164,928 | $ | 145,095 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
25 | Invesco Floating Rate Fund |
Open Forward Foreign Currency Contracts-(continued) | ||||||||||||||||||||||
Settlement |
Contract to | Unrealized Appreciation | ||||||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||||
| ||||||||||||||||||||||
03/15/2019 | Barclays Capital | EUR | 20,162,621 | USD | 23,242,784 | $ | 287,733 | |||||||||||||||
| ||||||||||||||||||||||
03/15/2019 | Barclays Capital | USD | 12,723,663 | GBP | 9,883,178 | 392,264 | ||||||||||||||||
| ||||||||||||||||||||||
03/15/2019 | Citibank N.A. | EUR | 20,162,621 | USD | 23,246,292 | 291,241 | ||||||||||||||||
| ||||||||||||||||||||||
03/15/2019 | Citibank N.A. | SEK | 23,239 | USD | 2,618 | 100 | ||||||||||||||||
| ||||||||||||||||||||||
03/15/2019 | Goldman Sachs International | EUR | 20,162,621 | USD | 23,244,598 | 289,547 | ||||||||||||||||
| ||||||||||||||||||||||
03/15/2019 | Goldman Sachs International | USD | 22,825,590 | EUR | 20,164,928 | 132,088 | ||||||||||||||||
| ||||||||||||||||||||||
03/15/2019 | J.P. Morgan Chase Bank, N.A. | CHF | 1,044,270 | USD | 1,066,959 | 19,568 | ||||||||||||||||
| ||||||||||||||||||||||
03/15/2019 | J.P. Morgan Chase Bank, N.A. | EUR | 20,170,168 | USD | 23,250,314 | 286,671 | ||||||||||||||||
| ||||||||||||||||||||||
03/15/2019 | J.P. Morgan Chase Bank, N.A. | SEK | 23,213 | USD | 2,615 | 99 | ||||||||||||||||
| ||||||||||||||||||||||
03/15/2019 | J.P. Morgan Chase Bank, N.A. | USD | 1,039,105 | CHF | 1,044,270 | 8,286 | ||||||||||||||||
| ||||||||||||||||||||||
03/15/2019 | J.P. Morgan Chase Bank, N.A. | USD | 22,818,221 | EUR | 20,163,246 | 137,541 | ||||||||||||||||
| ||||||||||||||||||||||
03/15/2019 | J.P. Morgan Chase Bank, N.A. | USD | 12,623,928 | GBP | 9,806,539 | 390,291 | ||||||||||||||||
| ||||||||||||||||||||||
03/15/2019 | J.P. Morgan Chase Bank, N.A. | USD | 5,031 | SEK | 46,453 | 3 | ||||||||||||||||
| ||||||||||||||||||||||
03/15/2019 | Royal Bank of Canada | USD | 22,827,707 | EUR | 20,164,928 | 129,971 | ||||||||||||||||
| ||||||||||||||||||||||
Subtotal–Appreciation | 2,510,498 | |||||||||||||||||||||
| ||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||
| ||||||||||||||||||||||
03/15/2019 | Barclays Capital | GBP | 6,479,674 | USD | 8,319,587 | (279,563 | ) | |||||||||||||||
| ||||||||||||||||||||||
03/15/2019 | Citibank N.A. | GBP | 6,485,137 | USD | 8,322,909 | (283,490 | ) | |||||||||||||||
| ||||||||||||||||||||||
03/15/2019 | Goldman Sachs International | GBP | 245,232 | USD | 319,253 | (6,193 | ) | |||||||||||||||
| ||||||||||||||||||||||
03/15/2019 | J.P. Morgan Chase Bank, N.A. | GBP | 6,479,674 | USD | 8,318,891 | (280,259 | ) | |||||||||||||||
| ||||||||||||||||||||||
04/15/2019 | Bank of America, N.A. | EUR | 20,320,463 | USD | 23,051,432 | (143,819 | ) | |||||||||||||||
| ||||||||||||||||||||||
04/15/2019 | Barclays Capital | GBP | 9,963,965 | USD | 12,849,011 | (395,113 | ) | |||||||||||||||
| ||||||||||||||||||||||
04/15/2019 | Goldman Sachs International | EUR | 20,347,410 | USD | 23,094,976 | (131,033 | ) | |||||||||||||||
| ||||||||||||||||||||||
04/15/2019 | J.P. Morgan Chase Bank, N.A. | CHF | 1,043,747 | USD | 1,041,808 | (8,127 | ) | |||||||||||||||
| ||||||||||||||||||||||
04/15/2019 | J.P. Morgan Chase Bank, N.A. | EUR | 20,318,768 | USD | 23,057,332 | (135,985 | ) | |||||||||||||||
| ||||||||||||||||||||||
04/15/2019 | J.P. Morgan Chase Bank, N.A. | GBP | 9,940,301 | USD | 12,817,411 | (395,258 | ) | |||||||||||||||
| ||||||||||||||||||||||
04/15/2019 | J.P. Morgan Chase Bank, N.A. | SEK | 46,453 | USD | 5,044 | (3 | ) | |||||||||||||||
| ||||||||||||||||||||||
04/15/2019 | Royal Bank of Canada |
| EUR
|
|
| 20,320,463
|
|
| USD
|
|
| 23,066,896
|
|
| (128,356
| )
| ||||||
| ||||||||||||||||||||||
Subtotal–Depreciation
| (2,187,199 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||
Total Forward Foreign Currency Contracts
| $
| 323,299
|
| |||||||||||||||||||
|
Currency Abbreviations: |
CHF - Swiss Franc |
EUR - Euro |
GBP - British Pound Sterling |
SEK - Sweden Krona |
USD - U.S. Dollar |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
26 | Invesco Floating Rate Fund |
Statement of Assets and Liabilities
February 28, 2019
(Unaudited)
Assets: | ||||
Investments in securities, at value | $ | 2,189,740,609 | ||
Investments in affiliated money market funds, at value (Cost $48,831,267) | 48,831,267 | |||
Other investments: | ||||
Unrealized appreciation on forward foreign currency contracts outstanding | 2,510,498 | |||
Cash | 20,146,727 | |||
Foreign currencies, at value | 23,816,858 | |||
Receivable for: | ||||
Investments sold | 111,870,259 | |||
Fund shares sold | 962,069 | |||
Interest | 10,108,722 | |||
Investments matured, at value | 245,059 | |||
Investment for trustee deferred compensation and retirement plans | 179,057 | |||
Other assets | 80,037 | |||
Total assets | 2,408,491,162 | |||
Liabilities: | ||||
Other investments: | ||||
Unrealized depreciation on forward foreign currency contracts outstanding | 2,187,199 | |||
Payable for: | ||||
Investments purchased | 137,976,795 | |||
Dividends | 2,043,613 | |||
Fund shares reacquired | 12,974,650 | |||
Accrued fees to affiliates | 523,705 | |||
Accrued trustees’ and officers’ fees and benefits | 7,447 | |||
Accrued other operating expenses | 666,387 | |||
Trustee deferred compensation and retirement plans | 203,282 | |||
Unfunded loan commitments | 35,015,467 | |||
Total liabilities | 191,598,545 | |||
Net assets applicable to shares outstanding | $ | 2,216,892,617 | ||
Net assets consist of: |
| |||
Shares of beneficial interest | $ | 2,399,390,507 | ||
Distributable earnings | (182,497,890 | ) | ||
$ | 2,216,892,617 |
Net Assets: | ||||
Class A | $ | 621,916,341 | ||
Class C | $ | 256,010,594 | ||
Class R | $ | 5,317,919 | ||
Class Y | $ | 721,238,757 | ||
Class R5 | $ | 6,015,102 | ||
Class R6 | $ | 606,393,904 | ||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 83,335,559 | |||
Class C | 34,457,307 | |||
Class R | 711,591 | |||
Class Y | 96,780,871 | |||
Class R5 | 805,518 | |||
Class R6 | 81,378,248 | |||
Class A: |
| |||
Net asset value per share | $ | 7.46 | ||
Maximum offering price per share | $ | 7.65 | ||
Class C: |
| |||
Net asset value and offering price per share | $ | 7.43 | ||
Class R: |
| |||
Net asset value and offering price per share | $ | 7.47 | ||
Class Y: |
| |||
Net asset value and offering price per share | $ | 7.45 | ||
Class R5: |
| |||
Net asset value and offering price per share | $ | 7.47 | ||
Class R6: |
| |||
Net asset value and offering price per share | $ | 7.45 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
27 | Invesco Floating Rate Fund |
Statement of Operations
For the six months ended February 28, 2019
(Unaudited)
Investment income: | ||||
Interest | $ | 67,282,566 | ||
| ||||
Dividends | 472,339 | |||
| ||||
Dividends from affiliated money market funds | 778,196 | |||
| ||||
Other income | 277,099 | |||
| ||||
Total investment income | 68,810,200 | |||
| ||||
Expenses: | ||||
Advisory fees | 7,326,278 | |||
| ||||
Administrative services fees | 219,708 | |||
| ||||
Custodian fees | 211,910 | |||
| ||||
Distribution fees: | ||||
Class A | 713,973 | |||
| ||||
Class C | 1,307,345 | |||
| ||||
Class R | 13,501 | |||
| ||||
Interest, facilities and maintenance fees | 636,111 | |||
| ||||
Transfer agent fees – A, C, R & Y | 770,205 | |||
| ||||
Transfer agent fees – R5 | 2,650 | |||
| ||||
Transfer agent fees – R6 | 15,091 | |||
| ||||
Trustees’ and officers’ fees and benefits | 27,759 | |||
| ||||
Registration and filing fees | 68,978 | |||
| ||||
Reports to shareholders | 94,381 | |||
| ||||
Professional services fees | 115,650 | |||
| ||||
Other | 106,723 | |||
| ||||
Total expenses | 11,630,263 | |||
| ||||
Less: Fees waived and expense offset arrangement(s) | (50,318 | ) | ||
| ||||
Net expenses | 11,579,945 | |||
| ||||
Net investment income | 57,230,255 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities | (18,666,578 | ) | ||
| ||||
Foreign currencies | (203,246 | ) | ||
| ||||
Forward foreign currency contracts | 3,919,095 | |||
| ||||
(14,950,729 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | (25,700,538 | ) | ||
| ||||
Foreign currencies | 317,400 | |||
| ||||
Forward foreign currency contracts | (904,634 | ) | ||
| ||||
(26,287,772 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (41,238,501 | ) | ||
| ||||
Net increase in net assets resulting from operations | $ | 15,991,754 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
28 | Invesco Floating Rate Fund |
Statement of Changes in Net Assets
For the six months ended February 28, 2019 and the year ended August 31, 2018
(Unaudited)
February 28, 2019 | August 31, 2018 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 57,230,255 | $ | 110,339,643 | ||||
| ||||||||
Net realized gain (loss) | (14,950,729 | ) | 1,487,494 | |||||
| ||||||||
Change in net unrealized appreciation (depreciation) | (26,287,772 | ) | 4,131,229 | |||||
| ||||||||
Net increase in net assets resulting from operations | 15,991,754 | 115,958,366 | ||||||
| ||||||||
Distributions to shareholders from distributable earnings(1): | ||||||||
Class A | (13,361,540 | ) | (25,495,503 | ) | ||||
| ||||||||
Class C | (7,247,625 | ) | (15,358,742 | ) | ||||
| ||||||||
Class R | (119,265 | ) | (235,757 | ) | ||||
| ||||||||
Class Y | (21,222,141 | ) | (42,632,667 | ) | ||||
| ||||||||
Class R5 | (132,439 | ) | (150,846 | ) | ||||
| ||||||||
Class R6 | (15,118,208 | ) | (28,890,761 | ) | ||||
| ||||||||
Total distributions to shareholders from distributable earnings | (57,201,218 | ) | (112,764,276 | ) | ||||
| ||||||||
Share transactions-net: | ||||||||
Class A | 43,962,854 | (45,642,976 | ) | |||||
| ||||||||
Class C | (124,729,076 | ) | (61,311,478 | ) | ||||
| ||||||||
Class R | (186,290 | ) | (770,602 | ) | ||||
| ||||||||
Class Y | (224,530,372 | ) | (14,750,347 | ) | ||||
| ||||||||
Class R5 | 1,397,516 | 1,865,416 | ||||||
| ||||||||
Class R6 | 670,147 | (3,772,361 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (303,415,221 | ) | (124,382,348 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (344,624,685 | ) | (121,188,258 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 2,561,517,302 | 2,682,705,560 | ||||||
| ||||||||
End of period | $ | 2,216,892,617 | $ | 2,561,517,302 | ||||
|
(1) | The Securities and Exchange Commission eliminated the requirement to disclose distribution components separately, except for tax return of capital. For the year ended August 31, 2018, distributions to shareholders from distributable earnings consisted of distributions from net investment income. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
29 | Invesco Floating Rate Fund |
Statement of Cash Flows
For the six month ended February 28, 2019
(Unaudited)
Cash provided by operating activities: | ||||
Net increase in net assets resulting from operations | $ | 15,991,754 | ||
| ||||
Adjustments to reconcile the change in net assets from operations to net cash provided by operating activities: |
| |||
Purchases of investments | (649,758,066 | ) | ||
| ||||
Proceeds from sales of investments | 845,295,738 | |||
| ||||
Amortization of premium on investment securities | (1,247,896 | ) | ||
| ||||
Decrease in receivables and other assets | 1,041,010 | |||
| ||||
Increase in accrued expenses and other payables | 100,155 | |||
| ||||
Net realized loss from investment securities | 18,666,578 | |||
| ||||
Net change in unrealized depreciation on investment securities | 25,700,538 | |||
| ||||
Net change in unrealized depreciation of forward foreign currency contracts | 904,634 | |||
| ||||
Net cash provided by operating activities | 256,694,445 | |||
| ||||
Cash provided by (used in) financing activities: | ||||
Dividends paid to shareholders from distributable earnings | (14,772,938 | ) | ||
| ||||
Proceeds from shares of beneficial interest sold | 449,523,801 | |||
| ||||
Disbursements from shares of beneficial interest reacquired | (783,962,979 | ) | ||
| ||||
Net cash provided by (used in) financing activities | (349,212,116 | ) | ||
| ||||
Net decrease in cash and cash equivalents | (92,517,671 | ) | ||
| ||||
Cash and cash equivalents at beginning of period | 185,312,523 | |||
| ||||
Cash and cash equivalents at end of period | $ | 92,794,852 | ||
| ||||
Non-cash financing activities: | ||||
Value of shares of beneficial interest issued in reinvestment of dividends paid to shareholders | $ | 43,054,076 | ||
| ||||
Supplemental disclosure of cash flow information: | ||||
| ||||
Cash paid during the period for interest, facilities and maintenance fees | $ | 636,111 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
30 | Invesco Floating Rate Fund |
Notes to Financial Statements
February 28, 2019
(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 anopen-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
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 C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with afront-end sales charge unless certain waiver criteria are met. 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, Class R5 and Class R6 shares are sold at net asset value.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946,Financial Services - Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations- Variable rate senior loan interests are fair valued using quotes provided by an independent pricing service. 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 securities) 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 theover-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 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 asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments inopen-end andclosed-end registered investment companies that do not trade on an exchange are valued at theend-of-day net asset value per share. Investments inopen-end andclosed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such asinstitution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may includeend-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
31 | Invesco Floating Rate Fund |
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Fund’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
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 (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities.Pay-in-kind interest income andnon-cash dividend income received in the form of securitiesin-lieu of cash are recorded at the fair value of the securities received. Facility fees received may be amortized over the life of the loan. Dividend income (net of withholding tax, if any) is recorded on theex-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.
Other income is comprised primarily of amendment fees which are recorded when received. Amendment fees are received in return for changes in the terms of the loan or note.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates 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 net investment income, if any, are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on theex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | 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. |
F. | Securities Purchased on a When-Issued and Delayed DeliveryBasis– 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. |
G. | Federal Income Taxes –The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
H. | Expenses –Fees provided for under the Rule12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets.Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency |
32 | Invesco Floating Rate Fund |
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. |
I. | 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 the credit agreement. |
J. | 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 theperiod-end date and before the date the financial statements are released to print. |
K. | Indemnifications– Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Fund is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
L. | 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 the 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. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
M. | Forward Foreign Currency Contracts– The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount(non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the dailymark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
N. | Industry Focus–To the extent that the Fund invests a greater amount of its assets in securities of issuers in the banking and financial services industries, the Fund’s performance will depend to a greater extent on the overall condition of those industries. The value of these securities can be sensitive to changes in government regulation, interest rates and economic downturns in the U.S. and abroad. |
O. | Bank Loan Risk– 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 board 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, which may impair the Fund’s ability to sell bank loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments. Extended trade settlement periods may result in cash not being immediately available to the Fund. As a result, the Fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. 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 seeks to manage counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. |
P. | Other Risks– The Fund may invest all or substantially all of its assets in senior secured floating rate loans and senior secured debt securities that are determined to be 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. ornon-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
33 | Invesco Floating Rate Fund |
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”. |
Q. | Leverage Risk– The Fund may utilize leverage to seek to enhance the yield of the Fund by borrowing. There are risks associated with borrowing in an effort to increase the yield and distributions on the common shares, including that the costs of the financial leverage may exceed the income from investments purchased with such leverage proceeds, the higher volatility of the net asset value of the shares, and that fluctuations in the interest rates on the borrowing may affect the yield and distributions to the common shareholders. There can be no assurance that the Fund’s leverage strategy will be successful. |
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |
First $500 million | 0.65% | |
Next $4.5 billion | 0.60% | |
Next $5 billion | 0.575% | |
Over $10 billion | 0.55% |
For the six months ended February 28, 2019, the effective advisory fees incurred by the Fund was 0.61%.
Under the terms of a mastersub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separatesub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “AffiliatedSub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such AffiliatedSub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such AffiliatedSub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2019, 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, Class R5 and Class R6 shares to 1.50%, 2.00%, 1.75%, 1.25%, 1.25% and 1.25%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary ornon-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2019. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limit.
Further, the Adviser has contractually agreed, through at least June 30, 2020, 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 28, 2019, the Adviser waived advisory fees of $48,383.
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 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees.
Also, Invesco has entered into service agreements whereby State Street Bank and Trust Company (“SSB”) serves as custodian and 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 orsub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule12b-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. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 28, 2019, expenses incurred under the Plans are shown in the Statement of Operations asDistribution 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
34 | Invesco Floating Rate Fund |
proceeds prior to remittance to the shareholder. During the six months ended February 28, 2019, IDI advised the Fund that IDI retained $33,817 infront-end sales commissions from the sale of Class A shares and $40,742 and $7,144 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.
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 28, 2019. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended February 28, 2019, there were transfers from Level 3 to Level 2 of $31,906,210, due to third-party vendor quotations utilizing more than one market quote and from Level 2 to Level 3 of $40,353,668, due to third party vendor quotations utilizing single market quotes.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments in Securities | ||||||||||||||||
| ||||||||||||||||
Variable Rate Senior Loan Interests | $ | – | $ | 1,884,224,022 | $ | 114,893,698 | $ | 1,999,117,720 | ||||||||
| ||||||||||||||||
U.S. Dollar Denominated Bonds & Notes | – | 107,181,498 | 39,038 | 107,220,536 | ||||||||||||
| ||||||||||||||||
Common Stocks & Other Equity Interests | 20,352,496 | 17,053,277 | 7,189,094 | 44,594,867 | ||||||||||||
| ||||||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes | – | 31,959,842 | – | 31,959,842 | ||||||||||||
| ||||||||||||||||
Structured Products | – | 6,675,605 | – | 6,675,605 | ||||||||||||
| ||||||||||||||||
Preferred Stocks | – | 29,738 | 142,301 | 172,039 | ||||||||||||
| ||||||||||||||||
Money Market Funds | 48,831,267 | – | – | 48,831,267 | ||||||||||||
| ||||||||||||||||
Investments Matured | – | 152,015 | 93,044 | 245,059 | ||||||||||||
| ||||||||||||||||
Total Investments in Securities | 69,183,763 | 2,047,275,997 | 122,357,175 | 2,238,816,935 | ||||||||||||
| ||||||||||||||||
Other Investments - Assets* | ||||||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | 2,510,498 | – | 2,510,498 | ||||||||||||
| ||||||||||||||||
Other Investments - Liabilities* | ||||||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | (2,187,199 | ) | – | (2,187,199 | ) | ||||||||||
| ||||||||||||||||
Total Other Investments | – | 323,299 | – | 323,299 | ||||||||||||
| ||||||||||||||||
Total Investments | $ | 69,183,763 | $ | 2,047,599,296 | $ | 122,357,175 | $ | 2,239,140,234 | ||||||||
|
* | Unrealized appreciation (depreciation). |
A reconciliation of Level 3 investments is presented when the Fund had a significant amount of Level 3 investments at the beginning and/or end of the reporting period in relation to net assets.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) during the six months ended February 28, 2019:
Change in | ||||||||||||||||||||||||||||||||||||
Accrued | Unrealized | Transfers | Transfers | |||||||||||||||||||||||||||||||||
Value | Purchases | Proceeds | Discounts/ | Realized | Appreciation | into | out of | Value | ||||||||||||||||||||||||||||
August 31, 2018 | at Cost | from Sales | Premiums | Gain | (Depreciation) | Level 3 | Level 3 | February 28, 2019 | ||||||||||||||||||||||||||||
Variable Rate Senior Loan Interests | $125,107,531 | $23,097,079 | $(42,153,350) | $(192,138) | $236,723 | $(1,587,806) | $39,812,273 | $(29,426,614) | $114,893,698 |
35 | Invesco Floating Rate Fund |
Change in | ||||||||||||||||||||||||||||||||||||
Accrued | Unrealized | Transfers | Transfers | |||||||||||||||||||||||||||||||||
Value | Purchases | Proceeds | Discounts/ | Realized | Appreciation | into | out of | Value | ||||||||||||||||||||||||||||
August 31, 2018 | at Cost | from Sales | Premiums | Gain | (Depreciation) | Level 3 | Level 3 | February 28, 2019 | ||||||||||||||||||||||||||||
U.S. Dollar Denominated Bonds & Notes | 44,615 | - | - | 8,711 | - | (14,288 | ) | - | - | 39,038 | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Common Stocks & Other Equity Interests | 8,448,586 | 4,932,125 | - | - | - | (4,253,416 | ) | 541,395 | (2,479,596 | ) | 7,189,094 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Preferred Stocks | 0 | - | - | - | - | 142,301 | - | - | 142,301 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Investments Matured | 74,634 | 18,456 | - | - | - | (46 | ) | - | - | 93,044 | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Total | $133,675,366 | $28,047,660 | $(42,153,350 | ) | $(183,427 | ) | $236,723 | $(5,713,255 | ) | $40,353,668 | $(31,906,210 | ) | $122,357,175 | |||||||||||||||||||||||
|
Securities determined to be Level 3 at the end of the reporting period were valued primarily by utilizing quotes from a third-party vendor pricing service. A significant change in third-party pricing information could result in a significantly lower or higher value in Level 3 investments.
NOTE 4–Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions andclose-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
Value of Derivative Investments atPeriod-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of February 28, 2019:
Value | ||||
Currency | ||||
Derivative Assets | Risk | |||
| ||||
Unrealized appreciation on forward foreign currency contracts outstanding | $ | 2,510,498 | ||
| ||||
Derivatives not subject to master netting agreements | - | |||
| ||||
Total Derivative Assets subject to master netting agreements | $ | 2,510,498 | ||
| ||||
Value | ||||
Currency | ||||
Derivative Liabilities | Risk | |||
| ||||
Unrealized depreciation on forward foreign currency contracts outstanding | $ | (2,187,199 | ) | |
| ||||
Derivatives not subject to master netting agreements | - | |||
| ||||
Total Derivative Liabilities subject to master netting agreements | $ | (2,187,199 | ) | |
|
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of February 28, 2019.
Financial | Financial | |||||||||||||||||||
Derivative | Derivative | |||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||
Forward Foreign | Forward Foreign | Net Value of | Collateral (Received)/Pledged | Net | ||||||||||||||||
Counterparty | Currency Contracts | Currency Contracts | Derivatives | Non-Cash | Cash | Amount | ||||||||||||||
| ||||||||||||||||||||
Bank of America, N.A. | $ 145,095 | $(143,819 | ) | $ 1,276 | $- | $- | $ 1,276 | |||||||||||||
| ||||||||||||||||||||
Barclays Capital | 679,997 | (674,676 | ) | 5,321 | - | - | 5,321 | |||||||||||||
| ||||||||||||||||||||
Citibank, N.A. | 291,341 | (283,490 | ) | 7,851 | - | - | 7,851 | |||||||||||||
| ||||||||||||||||||||
Goldman Sachs International | 421,635 | (137,226 | ) | 284,409 | - | - | 284,409 | |||||||||||||
| ||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | 842,459 | (819,632 | ) | 22,827 | - | - | 22,827 | |||||||||||||
| ||||||||||||||||||||
Royal Bank of Canada | 129,971 | (128,356 | ) | 1,615 | - | - | 1,615 | |||||||||||||
| ||||||||||||||||||||
Total | $2,510,498 | $(2,187,199 | ) | $323,299 | $- | $- | $323,299 | |||||||||||||
|
36 | Invesco Floating Rate Fund |
Effect of Derivative Investments for the six months ended February 28, 2019
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain (Loss) on | ||
Statement of Operations | ||
Currency | ||
Risk | ||
Realized Gain: | ||
Forward foreign currency contracts | $3,919,095 | |
Change in Net Unrealized (Depreciation): | ||
Forward foreign currency contracts | (904,634) | |
Total | $3,014,461 |
The table below summarizes the average notional value of derivatives held during the period.
Forward | ||
Foreign Currency | ||
Contracts | ||
Average notional value | $353,882,851 |
NOTE 5–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $1,935.
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, andTrustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan.Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Unfunded Loan Commitments
As of February 28, 2019, 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:
Borrower | Type | Principal Amount(a) | Value | |||||||
AMCP Clean Acquisition Co., LLC | Delayed Draw Term Loan | $ | 109,767 | $ 108,121 | ||||||
Brightview Landscapes, LLC | First Lien Revolver Loan | 992,343 | 917,917 | |||||||
Carlisle Foodservice Products, Inc. | Delayed Draw Term Loan | 90,664 | 87,906 | |||||||
Dentalcorp Perfect Smile ULC | First Lien Delayed Draw Term Loan | 86,233 | 85,532 | |||||||
Dentalcorp Perfect Smile ULC | Second Lien Term Loan | 118,485 | 116,708 | |||||||
Fieldwood Energy LLC | Revolver Loan | 27,701,107 | 27,424,096 | |||||||
GlobalLogic Holdings, Inc. | Delayed Draw Term Loan | 87,317 | 87,208 | |||||||
Heartland Dental, LLC | Delayed Draw Term Loan | 24,848 | 24,585 | |||||||
IAP Worldwide Services | First Lien Term Loan | 789,017 | 789,017 | |||||||
Mavis Tire Express Services Corp. | Delayed Draw Term Loan | 303,133 | 300,481 | |||||||
National Vision, Inc. | First Lien Revolver Loan | 3,004,345 | 2,763,997 | |||||||
Transtar Holding Co. | Term Loan | 242,525 | 241,919 | |||||||
Unilabs Diagnostics AB | Revolver Loan | EUR | 1,849,988 | 2,067,980 | ||||||
$ 35,015,467 |
(a) | Principal amounts are denominated in U.S. Dollars unless otherwise noted. |
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 GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss
37 | Invesco Floating Rate Fund |
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 fiscalyear-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. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2018, as follows:
Capital Loss Carryforward* | ||||||||
Expiration | Short-Term | Long-Term | Total | |||||
Not subject to expiration | $– | $98,061,987 | $98,061,987 |
* | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2019 was $588,668,243 and $848,028,482, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a TaxBasis | ||||
Aggregate unrealized appreciation of investments | $ 18,896,824 | |||
Aggregate unrealized (depreciation) of investments | (94,163,496 | ) | ||
Net unrealized (depreciation) of investments | $(75,266,672 | ) |
Cost of investments for tax purposes is $2,314,406,906.
NOTE 10–Cash Balances
The Board of Trustees of the Fund approved a revolving line of credit agreement with SSB in which the Fund may borrow up to the lesser of (1) $500,000,000 or (2) the limits set by its prospectus for borrowings. During the six months ended February 28, 2019, the Fund did not draw on the revolving line of credit. This agreement will expire on July 17, 2019.
Additionally, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any atperiod-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 11–Senior Loan Participation Commitments
The Fund invests in participations, assignments, or acts as a party to the primary lending syndicate of a Senior Loan interest to corporations, partnerships, and other entities. When the Fund purchases a participation of a Senior Loan interest, the Fund typically enters into a contractual agreement with the lender or other third party selling the participation, but not with the borrower directly. As such, the Fund assumes the credit risk of the borrower, selling participant or other persons interpositioned between the Fund and the borrower.
At the six months ended February 28, 2019, the following sets forth the selling participants with respect to interest in Senior Loans purchased by the Fund on a participation basis.
Principal | ||||||||
Selling Participant | Amount | Value | ||||||
Goldman Sachs Lending Partners LLC | $3,004,345 | $2,763,997 |
38 | Invesco Floating Rate Fund |
NOTE 12–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended February 28, 2019(a) | Year ended August 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 23,196,928 | $ 172,015,051 | 18,929,188 | $ 143,533,968 | ||||||||||||
| ||||||||||||||||
Class C | 4,051,153 | 30,084,522 | 6,770,878 | 51,103,833 | ||||||||||||
| ||||||||||||||||
Class R | 147,808 | 1,111,270 | 136,694 | 1,037,418 | ||||||||||||
| ||||||||||||||||
Class Y | 27,603,784 | 206,463,278 | 48,907,919 | 370,331,167 | ||||||||||||
| ||||||||||||||||
Class R5 | 310,998 | 2,330,222 | 336,775 | 2,554,713 | ||||||||||||
| ||||||||||||||||
Class R6 | 4,787,453 | 35,664,416 | 10,475,341 | 79,226,341 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 1,324,175 | 9,848,822 | 2,462,146 | 18,658,658 | ||||||||||||
| ||||||||||||||||
Class C | 679,721 | 5,034,374 | 1,509,699 | 11,390,606 | ||||||||||||
| ||||||||||||||||
Class R | 90,221 | 680,448 | 27,068 | 205,416 | ||||||||||||
| ||||||||||||||||
Class Y | 1,664,389 | 12,363,559 | 3,661,736 | 27,711,614 | ||||||||||||
| ||||||||||||||||
Class R5 | 17,680 | 131,413 | 17,965 | 136,259 | ||||||||||||
| ||||||||||||||||
Class R6 | 2,019,964 | 14,995,460 | 3,793,428 | 28,707,181 | ||||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (18,590,965 | ) | (137,901,019 | ) | (27,425,782 | ) | (207,835,602 | ) | ||||||||
| ||||||||||||||||
Class C | (21,725,757 | ) | (159,847,972 | ) | (16,415,089 | ) | (123,805,917 | ) | ||||||||
| ||||||||||||||||
Class R | (262,972 | ) | (1,978,008 | ) | (265,294 | ) | (2,013,436 | ) | ||||||||
| ||||||||||||||||
Class Y | (59,942,493 | ) | (443,357,209 | ) | (54,539,771 | ) | (412,793,128 | ) | ||||||||
| ||||||||||||||||
Class R5 | (143,003 | ) | (1,064,119 | ) | (108,892 | ) | (825,556 | ) | ||||||||
| ||||||||||||||||
Class R6 | (6,708,895 | ) | (49,989,729 | ) | (14,773,649 | ) | (111,705,883 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (41,479,811 | ) | $(303,415,221 | ) | (16,499,640 | ) | $(124,382,348 | ) | ||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 56% 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. |
NOTE 13–Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income(a) | Net gains on securities | Total from investment operations | Dividends from net investment income | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of net assets | Ratio of to average net and/or expenses | Supplemental to average | Ratio of net to average | Portfolio turnover (c) | ||||||||||||||||||||||||||||||||||||||
Class A |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $7.57 | $0.17 | $(0.11 | ) | $ 0.06 | $(0.17 | ) | $7.46 | 0.86 | % | $ 621,916 | 1.07 | %(d)(e) | 1.07 | %(d)(e) | 1.02 | %(e) | 4.66 | %(e) | 25 | % | |||||||||||||||||||||||||||||
Year ended 08/31/18 | 7.56 | 0.31 | 0.02 | 0.33 | (0.32 | ) | 7.57 | 4.47 | 585,865 | 1.07 | (d) | 1.08 | (d) | – | 4.15 | 51 | ||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 7.42 | 0.31 | 0.14 | 0.45 | (0.31 | ) | 7.56 | 6.17 | 630,740 | 1.06 | (d) | 1.07 | (d) | – | 4.05 | 68 | ||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 7.56 | 0.36 | (0.14 | ) | 0.22 | (0.36 | ) | 7.42 | 3.12 | 661,442 | 1.10 | (d) | 1.11 | (d) | – | 4.93 | 70 | |||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 7.95 | 0.35 | (0.38 | ) | (0.03 | ) | (0.36 | ) | 7.56 | (0.42 | ) | 850,891 | 1.06 | (d) | 1.06 | (d) | – | 4.51 | 59 | |||||||||||||||||||||||||||||||
Year ended 08/31/14 | 7.93 | 0.32 | 0.03 | 0.35 | (0.33 | ) | 7.95 | 4.33 | 1,025,092 | 1.03 | (d) | 1.04 | (d) | – | 4.01 | 82 | ||||||||||||||||||||||||||||||||||
Class C |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 7.53 | 0.15 | (0.10 | ) | 0.05 | (0.15 | ) | 7.43 | 0.74 | 256,011 | 1.57 | (d)(e) | 1.57 | (d)(e) | 1.52 | (e) | 4.16 | (e) | 25 | |||||||||||||||||||||||||||||||
Year ended 08/31/18 | 7.53 | 0.28 | 0.00 | 0.28 | (0.28 | ) | 7.53 | 3.81 | 387,685 | 1.57 | (d) | 1.58 | (d) | – | 3.65 | 51 | ||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 7.39 | 0.27 | 0.14 | 0.41 | (0.27 | ) | 7.53 | 5.65 | 448,408 | 1.56 | (d) | 1.57 | (d) | – | 3.55 | 68 | ||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 7.52 | 0.32 | (0.13 | ) | 0.19 | (0.32 | ) | 7.39 | 2.74 | 458,340 | 1.60 | (d) | 1.61 | (d) | – | 4.43 | 70 | |||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 7.92 | 0.31 | (0.39 | ) | (0.08 | ) | (0.32 | ) | 7.52 | (1.07 | ) | 570,097 | 1.56 | (d) | 1.56 | (d) | – | 4.01 | 59 | |||||||||||||||||||||||||||||||
Year ended 08/31/14 | 7.90 | 0.28 | 0.03 | 0.31 | (0.29 | ) | 7.92 | 3.91 | 691,152 | 1.53 | (d) | 1.54 | (d) | – | 3.51 | 82 |
39 | Invesco Floating Rate Fund |
Net asset value, beginning of period | Net investment income(a) | Net gains on securities | Total from investment operations | Dividends from net investment income | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of net assets with fee waivers | Ratio of to average net and/or expenses | Supplemental to average | Ratio of net to average | Portfolio turnover (c) | ||||||||||||||||||||||||||||||||||||||
Class R |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $7.58 | $0.16 | $(0.11 | ) | $ 0.05 | $(0.16 | ) | $7.47 | 0.74 | % | $ 5,318 | 1.32 | %(d)(e) | 1.32 | %(d)(e) | 1.27 | %(e) | 4.41 | %(e) | 25 | % | |||||||||||||||||||||||||||||
Year ended 08/31/18 | 7.57 | 0.30 | 0.01 | 0.31 | (0.30 | ) | 7.58 | 4.21 | 5,583 | 1.32 | (d) | 1.33 | (d) | – | 3.90 | 51 | ||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 7.44 | 0.29 | 0.13 | 0.42 | (0.29 | ) | 7.57 | 5.76 | 6,345 | 1.31 | (d) | 1.32 | (d) | – | 3.80 | 68 | ||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 7.57 | 0.34 | (0.13 | ) | 0.21 | (0.34 | ) | 7.44 | 3.00 | 6,191 | 1.35 | (d) | 1.36 | (d) | – | 4.68 | 70 | |||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 7.97 | 0.33 | (0.39 | ) | (0.06 | ) | (0.34 | ) | 7.57 | (0.79 | ) | 11,969 | 1.31 | (d) | 1.31 | (d) | – | 4.26 | 59 | |||||||||||||||||||||||||||||||
Year ended 08/31/14 | 7.95 | 0.30 | 0.03 | 0.33 | (0.31 | ) | 7.97 | 4.18 | 11,152 | 1.28 | (d) | 1.29 | (d) | – | 3.76 | 82 | ||||||||||||||||||||||||||||||||||
Class Y |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 7.56 | 0.18 | (0.11 | ) | 0.07 | (0.18 | ) | 7.45 | 0.99 | 721,239 | 0.82 | (d)(e) | 0.82 | (d)(e) | 0.77 | (e) | 4.91 | (e) | 25 | |||||||||||||||||||||||||||||||
Year ended 08/31/18 | 7.55 | 0.33 | 0.02 | 0.35 | (0.34 | ) | 7.56 | 4.72 | 963,386 | 0.82 | (d) | 0.83 | (d) | – | 4.40 | 51 | ||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 7.41 | 0.32 | 0.15 | 0.47 | (0.33 | ) | 7.55 | 6.43 | 977,034 | 0.81 | (d) | 0.82 | (d) | – | 4.30 | 68 | ||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 7.54 | 0.38 | (0.13 | ) | 0.25 | (0.38 | ) | 7.41 | 3.51 | 648,603 | 0.85 | (d) | 0.86 | (d) | – | 5.18 | 70 | |||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 7.94 | 0.37 | (0.39 | ) | (0.02 | ) | (0.38 | ) | 7.54 | (0.31 | ) | 805,611 | 0.81 | (d) | 0.81 | (d) | – | 4.76 | 59 | |||||||||||||||||||||||||||||||
Year ended 08/31/14 | 7.92 | 0.34 | 0.03 | 0.37 | (0.35 | ) | 7.94 | 4.69 | 802,508 | 0.78 | (d) | 0.79 | (d) | – | 4.26 | 82 | ||||||||||||||||||||||||||||||||||
Class R5 |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 7.58 | 0.18 | (0.11 | ) | 0.07 | (0.18 | ) | 7.47 | 1.02 | 6,015 | 0.83 | (d)(e) | 0.83 | (d)(e) | 0.78 | (e) | 4.90 | (e) | 25 | |||||||||||||||||||||||||||||||
Year ended 08/31/18 | 7.57 | 0.33 | 0.02 | 0.35 | (0.34 | ) | 7.58 | 4.73 | 4,696 | 0.81 | (d) | 0.82 | (d) | – | 4.41 | 51 | ||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 7.43 | 0.32 | 0.15 | 0.47 | (0.33 | ) | 7.57 | 6.43 | 2,830 | 0.82 | (d) | 0.83 | (d) | – | 4.29 | 68 | ||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 7.56 | 0.38 | (0.13 | ) | 0.25 | (0.38 | ) | 7.43 | 3.52 | 1,858 | 0.84 | (d) | 0.85 | (d) | – | 5.19 | 70 | |||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 7.96 | 0.37 | (0.39 | ) | (0.02 | ) | (0.38 | ) | 7.56 | (0.29 | ) | 3,466 | 0.80 | (d) | 0.80 | (d) | – | 4.77 | 59 | |||||||||||||||||||||||||||||||
Year ended 08/31/14 | 7.94 | 0.34 | 0.03 | 0.37 | (0.35 | ) | 7.96 | 4.72 | 8,087 | 0.76 | (d) | 0.77 | (d) | – | 4.28 | 82 | ||||||||||||||||||||||||||||||||||
Class R6 |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 7.56 | 0.18 | (0.11 | ) | 0.07 | (0.18 | ) | 7.45 | 1.02 | 606,394 | 0.74 | (d)(e) | 0.74 | (d)(e) | 0.69 | (e) | 4.99 | (e) | 25 | |||||||||||||||||||||||||||||||
Year ended 08/31/18 | 7.55 | 0.34 | 0.02 | 0.36 | (0.35 | ) | 7.56 | 4.83 | 614,302 | 0.73 | (d) | 0.74 | (d) | – | 4.49 | 51 | ||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 7.41 | 0.33 | 0.15 | 0.48 | (0.34 | ) | 7.55 | 6.53 | 617,349 | 0.72 | (d) | 0.73 | (d) | – | 4.39 | 68 | ||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 7.56 | 0.39 | (0.16 | ) | 0.23 | (0.38 | ) | 7.41 | 3.34 | 555,172 | 0.75 | (d) | 0.76 | (d) | – | 5.28 | 70 | |||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 7.95 | 0.38 | (0.38 | ) | 0.00 | (0.39 | ) | 7.56 | (0.06 | ) | 97,902 | 0.70 | (d) | 0.70 | (d) | – | 4.87 | 59 | ||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 7.94 | 0.35 | 0.01 | 0.36 | (0.35 | ) | 7.95 | 4.66 | 83,025 | 0.69 | (d) | 0.70 | (d) | – | 4.35 | 82 |
(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) | Ratio includes line of credit expense of 0.05%, 0.05%, 0.05%, 0.05%, 0.03%, and 0.02% for the six months ended February 28, 2019 and the years ended August 31, 2018, 2017, 2016, 2015 and 2014, respectively. |
(e) | Ratios are annualized and based on average daily net assets (000’s omitted) of $575,912, $351,514, $5,445, $873,894, $5,345 and $608,555 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
40 | 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, 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, 2018 through February 28, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Beginning Account Value (09/01/18) | ACTUAL |
HYPOTHETICAL (5% annual return before expenses) | Annualized Expense Ratio | |||||||||||||||||||||||||||
Ending (02/28/19)1 | Expenses Period2 | Ending (02/28/19) | Expenses Period2 | |||||||||||||||||||||||||||
Class A | $1,000.00 | $1,008.60 | $5.33 | $1,019.49 | $5.36 | 1.07 | % | |||||||||||||||||||||||
Class C | 1,000.00 | 1,007.40 | 7.81 | 1,017.01 | 7.85 | 1.57 | ||||||||||||||||||||||||
Class R | 1,000.00 | 1,007.40 | 6.57 | 1,018.25 | 6.61 | 1.32 | ||||||||||||||||||||||||
Class Y | 1,000.00 | 1,009.90 | 4.09 | 1,020.73 | 4.11 | 0.82 | ||||||||||||||||||||||||
Class R5 | 1,000.00 | 1,008.80 | 4.13 | 1,020.68 | 4.16 | 0.83 | ||||||||||||||||||||||||
Class R6 | 1,000.00 | 1,010.20 | 3.69 | 1,021.12 | 3.71 | 0.74 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2018 through February 28, 2019, 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 181/365 to reflect the most recent fiscal half year. |
41 | Invesco Floating Rate Fund |
Explore High-Conviction Investing with Invesco
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Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
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∎ | Fund reports and prospectuses |
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∎ | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on FormN-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s FormsN-Q (or any successor Form) on the SEC website at sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd. |
SEC file numbers: 811-09913 and 333-36074 | Invesco Distributors, Inc. | FLR-SAR-1 | 04292019 1041 |
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Semiannual Report to Shareholders | February 28, 2019 | ||||
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Invesco Global Real Estate Income Fund | |||||
Nasdaq: | |||||
A: ASRAX◾ C: ASRCX◾ Y: ASRYX◾ R5: ASRIX◾ R6: ASRFX |
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2 | Fund Performance | |||
4 | Letters to Shareholders | |||
5 | Schedule of Investments | |||
9 | Financial Statements | |||
12 | Notes to Financial Statements | |||
18 | Financial Highlights | |||
19 | Fund Expenses |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800 959 4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most currentmonth-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, 8/31/18 to 2/28/19, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) orfront-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 1.95 | % | ||
Class C Shares | 1.68 | |||
Class Y Shares | 2.19 | |||
Class R5 Shares | 2.15 | |||
Class R6 Shares | 2.19 | |||
MSCI World Index▼ (Broad Market Index) | -3.34 | |||
Custom Invesco Global Real Estate Income Index∎ (Style-Specific Index) | 2.25 | |||
Lipper Global Real Estate Funds Classification Average◆ (Peer Group) | 1.99 | |||
Source(s):▼RIMES Technologies Corp.;∎Invesco, RIMES Technologies Corp.;◆Lipper Inc. |
|
TheMSCI World IndexSM is an unmanaged index considered representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes fornon-resident investors.
TheCustom Invesco Global Real Estate Income Index is composed of the FTSE NAREIT All Equity REITs Index, through August 31, 2011, and the FTSE EPRA/NAREIT Developed Index, which is computed using the net return by withholding applicable taxes, thereafter.
TheLipper Global Real Estate Funds Classification Average represents an average of all funds in the Lipper Global Real Estate Funds classification.
TheFTSE NAREIT All Equity REITs Index is considered representative of US REITs.
TheFTSE EPRA/NAREIT Developed Index is considered representative of global real estate companies and REITs.
The Fund is not managed to track the performance of any particular index, including the indexes described 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.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends. |
2 Invesco Global Real Estate Income Fund
Average Annual Total Returns |
| |||||
As of 2/28/19, including maximum applicable sales charges
| ||||||
Class A Shares |
| |||||
Inception (5/31/02) | 7.79 | % | ||||
10 Years | 11.90 | |||||
5 Years | 3.70 | |||||
1 Year | 1.94 | |||||
Class C Shares* |
| |||||
Inception (3/9/07) | 3.09 | % | ||||
10 Years | 11.71 | |||||
5 Years | 4.12 | |||||
1 Year | 6.21 | |||||
Class Y Shares |
| |||||
Inception (10/3/08) | 7.32 | % | ||||
10 Years | 12.83 | |||||
5 Years | 5.17 | |||||
1 Year | 8.29 | |||||
Class R5 Shares |
| |||||
Inception (3/9/07) | 4.13 | % | ||||
10 Years | 12.95 | |||||
5 Years | 5.25 | |||||
1 Year | 8.39 | |||||
Class R6 Shares |
| |||||
10 Years | 12.86 | % | ||||
5 Years | 5.32 | |||||
1 Year | 8.49 | |||||
* Effective January 26, 2019, Class C share performance includes the conversion to A shares after 10 years. |
|
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 theclosed-end fund’s common shares and includes the fees applicable to common shares.
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions (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
Average Annual Total Returns |
| |||||
As of 12/31/18, the most recent calendar quarter end, including maximum applicable sales charges
|
| |||||
Class A Shares |
| |||||
Inception (5/31/02) | 7.35 | % | ||||
10 Years | 8.50 | |||||
5 Years | 3.08 | |||||
1 Year | -9.59 | |||||
Class C Shares |
| |||||
Inception (3/9/07) | 2.32 | % | ||||
10 Years | 8.28 | |||||
5 Years | 3.46 | |||||
1 Year | -6.08 | |||||
Class Y Shares |
| |||||
Inception (10/3/08) | 6.60 | % | ||||
10 Years | 9.35 | |||||
5 Years | 4.51 | |||||
1 Year | -4.11 | |||||
Class R5 Shares |
| |||||
Inception (3/9/07) | 3.49 | % | ||||
10 Years | 9.52 | |||||
5 Years | 4.61 | |||||
1 Year | -4.00 | |||||
Class R6 Shares |
| |||||
10 Years | 9.41 | % | ||||
5 Years | 4.68 | |||||
1 Year | -3.91 |
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 Y, Class R5 and Class R6 shares was 1.25%, 2.00%, 1.00%, 0.93 and 0.83%, 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 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 Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance 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.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 Invesco Global Real Estate Income Fund
Letters to Shareholders
Bruce Crockett | Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time; monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory andsub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper, Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward. Our website,invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including |
performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at
800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
4 Invesco Global Real Estate Income Fund
Schedule of Investments
February 28, 2019
(Unaudited)
Shares | Value | |||||||
Common Stocks & Other Equity Interests–62.55% | ||||||||
Australia-3.16% | ||||||||
Dexus | 511,073 | $ 4,357,607 | ||||||
Goodman Group | 578,071 | 5,248,701 | ||||||
GPT Group (The) | 1,021,760 | 4,239,996 | ||||||
Mirvac Group | 2,970,622 | 5,415,533 | ||||||
Scentre Group | 3,768,487 | 10,345,194 | ||||||
29,607,031 | ||||||||
Canada-1.84% | ||||||||
Allied Properties REIT | 166,600 | 6,078,093 | ||||||
Chartwell Retirement Residences | 83,110 | 947,338 | ||||||
H&R Real Estate Investment Trust | 307,000 | 5,298,051 | ||||||
Killam Apartment REIT | 69,700 | 948,083 | ||||||
Pembina Pipeline Corp. | 108,592 | 3,974,156 | ||||||
17,245,721 | ||||||||
China-0.12% | ||||||||
Guangzhou R&F Properties Co. Ltd., Class H | 594,000 | 1,108,554 | ||||||
France–2.76% | ||||||||
ICADE | 55,605 | 4,734,104 | ||||||
Klepierre S.A. | 192,308 | 6,722,138 | ||||||
Unibail-Rodamco-Westfield | 88,797 | 14,342,297 | ||||||
25,798,539 | ||||||||
Germany-3.34% | ||||||||
Aroundtown S.A. | 441,323 | 3,714,671 | ||||||
Deutsche Wohnen S.E. | 101,881 | 4,751,264 | ||||||
Grand City Properties S.A. | 307,675 | 7,244,270 | ||||||
LEG Immobilien AG | 59,657 | 6,660,825 | ||||||
Vonovia S.E. | 183,872 | 8,927,605 | ||||||
31,298,635 | ||||||||
Hong Kong-5.70% | ||||||||
CK Asset Holdings Ltd. | 1,025,000 | 8,507,118 | ||||||
Hang Lung Properties Ltd. | 1,780,000 | 4,204,108 | ||||||
Hongkong Land Holdings Ltd. | 281,700 | 2,019,789 | ||||||
Link REIT | 626,000 | 7,077,614 | ||||||
New World Development Co. Ltd. | 6,397,000 | 10,203,121 | ||||||
Sino Land Co. Ltd. | 1,554,000 | 2,894,294 | ||||||
Sun Hung Kai Properties Ltd. | 931,000 | 15,396,061 | ||||||
Swire Properties Ltd. | 753,400 | 3,023,294 | ||||||
53,325,399 | ||||||||
Ireland-0.16% | ||||||||
Green REIT PLC | 873,069 | 1,463,788 | ||||||
Japan-6.99% | ||||||||
Advance Residence Investment Corp. | 989 | 2,750,550 |
Shares | Value | |||||
Japan-(continued) | ||||||
Daiwa Office Investment Corp. | 418 | $ 2,786,292 | ||||
GLPJ-REIT(a) | 3,993 | 4,166,204 | ||||
Hulic Co., Ltd. | 261,500 | 2,402,871 | ||||
InvIncible Investment Corp. | 4,203 | 1,911,740 | ||||
Japan Hotel REIT Investment Corp. | 4,025 | 3,101,848 | ||||
Japan Real Estate Investment Corp. | 953 | 5,514,601 | ||||
Japan Rental Housing Investments Inc. | 5,335 | 4,207,119 | ||||
Japan Retail Fund Investment Corp. | 1,967 | 3,963,782 | ||||
Kenedix Office Investment Corp. | 212 | 1,414,374 | ||||
Mitsubishi Estate Co., Ltd. | 387,200 | 6,653,477 | ||||
Mitsui Fudosan Co., Ltd. | 517,500 | 12,245,155 | ||||
Mitsui Fudosan Logistics Park Inc.(a) | 731 | 2,160,898 | ||||
Nippon Prologis REIT Inc.(a) | 984 | 2,090,443 | ||||
ORIX JREIT Inc. | 1,769 | 2,897,945 | ||||
Sumitomo Realty & Development Co., Ltd. | 120,900 | 4,516,463 | ||||
Tokyo Tatemono Co., Ltd. | 98,300 | 1,140,285 | ||||
United Urban Investment Corp. | 998 | 1,546,876 | ||||
65,470,923 | ||||||
Netherlands-0.50% | ||||||
InterXion Holding N.V.(a) | 72,085 | 4,721,567 | ||||
Singapore-1.60% | ||||||
Ascendas REIT | 1,590,700 | 3,294,349 | ||||
CapitaLand Commercial Trust | 2,367,000 | 3,396,435 | ||||
City Developments Ltd. | 523,700 | 3,466,472 | ||||
Mapletree Commercial Trust | 2,092,000 | 2,738,787 | ||||
Mapletree Logistics Trust | 2,083,200 | 2,126,343 | ||||
15,022,386 | ||||||
Spain-0.78% | ||||||
Ferrovial, S.A. | 114,788 | 2,645,258 | ||||
Merlin Properties SOCIMI, S.A. | 362,051 | 4,692,490 | ||||
7,337,748 | ||||||
Sweden-0.56% | ||||||
Hufvudstaden AB, Class A | 187,795 | 3,029,421 | ||||
Wihlborgs Fastigheter AB | 167,462 | 2,224,365 | ||||
5,253,786 | ||||||
Switzerland-0.84% | ||||||
Swiss Prime Site AG(a) | 92,661 | 7,821,942 | ||||
United Kingdom-3.21% | ||||||
Assura PLC | 4,591,470 | 3,513,870 | ||||
Big Yellow Group PLC | 200,042 | 2,601,518 | ||||
Land Securities Group PLC | 700,735 | 8,361,059 | ||||
SEGRO PLC | 571,050 | 5,006,493 | ||||
Tritax Big Box REIT PLC | 2,371,326 | 4,475,630 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 Invesco Global Real Estate Income Fund
Shares | Value | |||||
United Kingdom-(continued) | ||||||
Workspace Group PLC | 465,521 | $ 6,060,209 | ||||
30,018,779 | ||||||
United States-30.99% | ||||||
Alexandria Real Estate Equities, Inc. | 38,383 | 5,215,866 | ||||
American Campus Communities, Inc. | 230,105 | 10,368,531 | ||||
American Tower Corp., Class A | 57,782 | 10,178,299 | ||||
Apple Hospitality REIT, Inc. | 300,635 | 4,954,465 | ||||
AvalonBay Communities, Inc. | 112,841 | 21,962,244 | ||||
Boston Properties, Inc. | 128,634 | 17,068,445 | ||||
Crown Castle International Corp. | 139,499 | 16,565,506 | ||||
CyrusOne Inc. | 116,558 | 5,809,251 | ||||
Digital Realty Trust, Inc. | 65,989 | 7,464,676 | ||||
Duke Realty Corp. | 185,068 | 5,472,461 | ||||
EastGroup Properties, Inc. | 32,106 | 3,392,320 | ||||
Essex Property Trust, Inc. | 43,674 | 12,221,732 | ||||
Extra Space Storage, Inc. | 46,893 | 4,498,914 | ||||
Federal Realty Investment Trust | 48,274 | 6,448,924 | ||||
HCP, Inc. | 241,456 | 7,429,601 | ||||
Healthcare Realty Trust, Inc. | 265,238 | 8,394,783 | ||||
Highwoods Properties, Inc. | 80,886 | 3,745,831 | ||||
Hudson Pacific Properties Inc. | 376,846 | 12,518,824 | ||||
Liberty Property Trust | 151,918 | 7,190,279 | ||||
Macerich Co. (The) | 20,243 | 882,595 | ||||
Mid-America Apartment Communities, Inc. | 125,392 | 12,988,103 | ||||
National Retail Properties, Inc. | 189,420 | 9,868,782 | ||||
Park Hotels & Resorts Inc. | 155,046 | 4,843,637 | ||||
PotlatchDeltic Corp. | 125,292 | 4,509,259 | ||||
Prologis, Inc. | 174,819 | 12,247,819 | ||||
Public Storage | 75,794 | 16,029,673 | ||||
QTS Realty Trust, Inc., Class A | 133,626 | 5,576,213 | ||||
Retail Opportunity Investments Corp. | 186,971 | 3,210,292 | ||||
RLJ Lodging Trust | 174,459 | 3,239,704 | ||||
Simon Property Group, Inc. | 110,976 | 20,104,412 | ||||
Sunstone Hotel Investors, Inc. | 280,976 | 4,228,689 | ||||
Ventas, Inc. | 61,177 | 3,838,857 | ||||
Washington REIT | 230,910 | 6,116,806 | ||||
Weingarten Realty Investors | 141,325 | 4,071,573 | ||||
Welltower, Inc. | 40,146 | 2,983,249 | ||||
Weyerhaeuser Co. | 182,657 | 4,546,333 | ||||
290,186,948 | ||||||
Total Common Stocks & Other Equity Interests |
| 585,681,746 |
Principal Amount | Value | |||||
Collateralized Mortgage Obligations-18.12% | ||||||
United States-18.12% | ||||||
Banc of America Merrill Lynch Large Loan Inc., | $ | 6,650,000 | $ 6,092,098 | |||
Series 2016-FR13, Class A, Variable Rate Pass Through Ctfs., 1.65%, 08/27/2045(b)(d) | 5,000,000 | 4,493,011 | ||||
Barclays Commercial Mortgage Securities LLC, Series 2013-TYSN, Class E, Pass Through Ctfs., 3.71%, 09/05/2032(b) | 7,800,000 | 7,789,585 | ||||
Braemar Hotels & Resorts Trust, | 7,000,000 | 6,928,515 | ||||
BX Trust, Series 2018-MCSF, Class E, Floating Rate Pass Through Ctfs., 4.64% (1 mo. USD LIBOR + 2.15%), 04/15/2035(b)(e) | 9,500,000 | 9,336,740 | ||||
Citigroup Commercial Mortgage Trust, | 1,220,000 | 1,265,713 | ||||
Commercial Mortgage Trust, | 15,000,000 | 14,945,477 | ||||
Series 2014-CR21, Class D, Variable Rate Pass Through Ctfs., 3.92%, 12/10/2047(b)(d) | 10,711,000 | 9,303,432 | ||||
GS Mortgage Securities Corp. Trust, | 8,244,000 | 8,212,998 | ||||
JP Morgan Chase Commercial Mortgage Securities Trust, | 7,805,000 | 7,495,358 | ||||
Series 2015-FRR2, Class AK36, Variable Rate Pass Through Ctfs., 2.26%, 12/27/2046(b)(d) | 9,890,000 | 8,965,325 | ||||
JPMBB Commercial Mortgage Securities Trust, | 10,000,000 | 10,057,630 | ||||
Series2014-C23, Class RIM, Pass Through Ctfs., 4.30%, 09/15/2047(b) | 10,000,000 | 9,781,713 | ||||
Morgan Stanley Bank of America Merrill Lynch Trust, | 14,190,000 | 13,459,001 | ||||
Series2013-C12, Class D, Variable Rate Pass Through Ctfs., 4.77%, 10/15/2046(b)(d) | 13,510,000 | 13,452,569 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Global Real Estate Income Fund
Principal Amount | Value | |||||
United States-(continued) | ||||||
Morgan Stanley Capital I Trust, | $ | 7,700,000 | $ 7,661,217 | |||
Series 2017, Class E, Floating Rate Pass Through Ctfs., 4.44% (1 mo. USD LIBOR + 1.95%), 11/15/2034(b)(e) | 216,000 | 214,767 | ||||
Series 2006-IQ11, Class B, Variable Rate Pass Through Ctfs., 6.28%, 10/15/2042(d) | 270,000 | 272,533 | ||||
Natixis Commercial Mortgage Securities Trust, Series 2018-285M, Class E, Variable Rate Pass Through Ctfs., 3.79%, 11/15/2032(b)(d) | 11,150,000 | 10,918,681 | ||||
Wells Fargo Commercial Mortgage Trust, | 12,590,000 | 12,599,014 | ||||
Series2018-BXI, Class F, Floating Rate Pass Through Ctfs., 4.95% (1 mo. USD LIBOR + 2.46%), 12/15/2036(b)(e) | 6,400,000 | 6,419,883 | ||||
Total Collateralized Mortgage Obligations |
| 169,665,260 | ||||
Shares | ||||||
Preferred Stocks-14.74% | ||||||
United States-14.74% | ||||||
American Homes 4 Rent, Series D, 6.50% Pfd. | 198,066 | 5,129,909 | ||||
American Homes 4 Rent, Series E, 6.35% Pfd. | 357,532 | 9,163,545 | ||||
American Homes 4 Rent, Series H, 6.25% Pfd. | 228,400 | 5,712,284 | ||||
American Homes 4 Rent, Series F, 5.88% Pfd. | 170,449 | 4,184,523 | ||||
American Homes 4 Rent, Series G, 5.88% Pfd. | 137,500 | 3,415,500 | ||||
Apartment Investment & Management Co., Series A, 6.88% Pfd. | 37,450 | 978,568 | ||||
Crown Castle International Corp., Series A, $68.75 Conv. Pfd. | 10,636 | 11,858,183 | ||||
DCP Midstream L.P., Series B, 7.88% Floating Rate Pfd., (3 mo. USD LIBOR + 4.92%)(e) | 200,900 | 4,867,807 | ||||
DCP Midstream, L.P., Series C, 7.95% Floating Rate Pfd., (3 mo. USD LIBOR + 4.88%)(e) | 78,100 | 1,936,099 | ||||
Digital Realty Trust, Inc., Series J, 5.25% Pfd. | 136,500 | 3,203,655 | ||||
Digital Realty Trust, Inc., Series H, 7.38% Pfd. | 333,877 | 8,480,476 | ||||
Digital Realty Trust, Inc., Series I, 6.35% Pfd | 165,900 | 4,311,741 | ||||
Eagle Hospitality Properties Trust Inc., Series A, 8.25% Pfd. | 195,800 | 979 |
Shares | Value | |||||
United States-(continued) | ||||||
National Retail Properties, Inc., | 117,108 | $ 2,658,352 | ||||
National Retail Properties, Inc., | 65,900 | 1,617,845 | ||||
NuStar Logistics L.P., 9.07% Variable Rate Pfd., (3 mo. USD LIBOR + 6.73%)(e) | 199,400 | 4,947,114 | ||||
Pebblebrook Hotel Trust, Series C, 6.50% Pfd. | 173,470 | 4,432,158 | ||||
Pebblebrook Hotel Trust, 6.38% Pfd. | 179,361 | 4,634,688 | ||||
Pebblebrook Hotel Trust, Series F, 6.30% Pfd. | 58,006 | 1,439,129 | ||||
Public Storage, Series U, 5.63% Pfd. | 89,470 | 2,270,749 | ||||
Public Storage, Series Z, 6.00% Pfd. | 106,340 | 2,725,494 | ||||
Public Storage, Series D, 4.95% Pfd. | 231,300 | 5,412,420 | ||||
Public Storage, Series F, 5.15% Pfd. | 13,700 | 328,115 | ||||
Public Storage, Series Y, 6.38% Pfd. | 397,914 | 10,079,162 | ||||
QTS Realty Trust Inc., Series A, 7.13% Pfd. | 181,573 | 4,630,111 | ||||
Sempra Energy, Series A, $6.00 Conv. Pfd. | 78,304 | 8,121,691 | ||||
Summit Hotel Properties Inc., Series E, 6.25% Pfd. | 252,049 | 5,620,693 | ||||
Sunstone Hotel Investors, Inc., Series E, 6.95% Pfd. | 139,400 | 3,715,010 | ||||
Targa Resources Partners L.P., Series A, 9.00% Floating Rate Pfd., (1 mo. USD LIBOR + 7.71%)(e) | 284,600 | 7,689,892 | ||||
Taubman Centers, Inc., Series J, 6.50% Pfd. | 83,310 | 2,116,074 | ||||
Vornado Realty Trust, Series L, 5.40% Pfd. | 97,600 | 2,350,208 | ||||
Total Preferred Stocks (Cost $140,203,196) |
| 138,032,174 | ||||
Principal Amount | ||||||
U.S. Dollar Denominated Bonds & Notes-2.42% | ||||||
United States-2.42% | ||||||
Alexandria Real Estate Equities, Inc., | ||||||
Sr. Unsec. Gtd. Notes, 4.60%, 04/01/2022 | $ | 5,000,000 | 5,163,826 | |||
CenterPoint Energy, Inc., Series A, Jr. Unsec. Sub. Notes, 6.13%(f) | 1,958,000 | 1,990,630 | ||||
Dominion Energy, Inc., Series A, Jr. Unsec. Sub. Conv. Investment Units, 6.75%, 08/15/2019 | 130,600 | 6,433,356 | ||||
EnLink Midstream Partners L.P., Series C, Jr. Unsec. Sub. Variable Rate Notes, 6.00% (3 mo. USD LIBOR + 4.11%)(e)(f) | 1,825,000 | 1,491,938 | ||||
Equinix, Inc., Sr. Unsec. Notes, | 4,975,000 | 5,127,359 | ||||
Targa Resources Partners L.P./Targa Resources Partners Finance Corp., Sr. Unsec. Gtd. Global Notes, 4.25%, 11/15/2023 | 2,500,000 | 2,475,000 | ||||
Total U.S. Dollar Denominated Bonds & Notes |
| 22,682,109 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Global Real Estate Income Fund
Shares | Value | |||||
Money Market Funds-1.92% | ||||||
Invesco Government & Agency Portfolio, Institutional Class, | 6,287,374 | $ 6,287,374 | ||||
Invesco Liquid Assets Portfolio, Institutional Class, 2.51%(g) | 4,490,172 | 4,491,519 | ||||
Invesco Treasury Portfolio, Institutional Class, 2.29%(g) | 7,185,570 | 7,185,570 | ||||
Total Money Market Funds (Cost $17,964,248) |
| 17,964,463 | ||||
TOTAL INVESTMENTS IN SECURITIES-99.75% |
| 934,025,752 | ||||
OTHER ASSETS LESS LIABILITIES-0.25% |
| 2,370,606 | ||||
NET ASSETS-100.00% | $ 936,396,358 |
Investment Abbreviations:
Conv. | - Convertible |
Ctfs. | - Certificates |
Gtd. | - Guaranteed |
Jr. | - Junior |
LIBOR | - London Interbank Offered Rate |
Pfd. | - Preferred |
REIT | - Real Estate Investment Trust |
Sr. | - Senior |
Sub. | - Subordinated |
Unsec. | - Unsecured |
USD | - U.S. Dollar |
Notes to Schedule of Investments:
(a) | Non-income producing security. |
(b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). 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 28, 2019 was $169,392,727, which represented 18.09% of the Fund’s Net Assets. |
(c) | Zero coupon bond issued at a discount. |
(d) | Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on February 28, 2019. |
(e) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2019. |
(f) | Perpetual bond with no specified maturity date. |
(g) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the7-day SEC standardized yield as of February 28, 2019. |
Portfolio Composition
By country, based on Net Assets
as of February 28, 2019
United States | 66.27 | % | ||
Japan | 6.99 | |||
Hong Kong | 5.70 | |||
Germany | 3.34 | |||
United Kingdom | 3.21 | |||
Australia | 3.16 | |||
France | 2.76 | |||
Other Countries, Each Less than 2% | 6.40 | |||
Money Market Funds Plus Other Assets Less Liabilities | 2.17 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Global Real Estate Income Fund
Statement of Assets and Liabilities
February 28, 2019
(Unaudited)
Assets: | ||
Investments in securities, at value | $916,061,289 | |
Investments in affiliated money market funds, at value (Cost $17,964,248) | 17,964,463 | |
Foreign currencies, at value (Cost $1,067,702) | 1,064,966 | |
Receivable for: | ||
Investments sold | 119,253 | |
Fund shares sold | 554,257 | |
Dividends | 1,237,514 | |
Interest | 718,802 | |
Investment for trustee deferred compensation and retirement plans | 136,466 | |
Other assets | 45,291 | |
Total assets | 937,902,301 | |
Liabilities: | ||
Payable for: | ||
Investments purchased | 14,875 | |
Fund shares reacquired | 690,769 | |
Accrued fees to affiliates | 448,665 | |
Accrued trustees’ and officers’ fees and benefits | 4,855 | |
Accrued other operating expenses | 195,599 | |
Trustee deferred compensation and retirement plans | 151,180 | |
Total liabilities | 1,505,943 | |
Net assets applicable to shares outstanding | $936,396,358 | |
Net assets consist of: | ||
Shares of beneficial interest | $898,820,909 | |
Distributable earnings | 37,575,449 | |
$936,396,358 |
Net Assets: | ||||
Class A | $ | 172,122,169 | ||
| ||||
Class C | $ | 38,994,264 | ||
| ||||
Class Y | $ | 591,637,843 | ||
| ||||
Class R5 | $ | 4,094,411 | ||
| ||||
Class R6 | $ | 129,547,671 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 18,864,397 | |||
| ||||
Class C | 4,282,167 | |||
| ||||
Class Y | 65,041,434 | |||
| ||||
Class R5 | 448,885 | |||
| ||||
Class R6 | 14,202,878 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 9.12 | ||
| ||||
Maximum offering price per share | $ | 9.65 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 9.11 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 9.10 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 9.12 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 9.12 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Global Real Estate Income Fund
Statement of Operations
For the six months ended February 28, 2019
(Unaudited)
Investment income: | ||||
Interest | $ | 5,665,052 | ||
| ||||
Dividends (net of foreign withholding taxes of $327,374) | 15,463,217 | |||
| ||||
Dividends from affiliated money market funds | 259,360 | |||
| ||||
Total investment income | 21,387,629 | |||
| ||||
Expenses: | ||||
Advisory fees | 3,625,764 | |||
| ||||
Administrative services fees | 105,222 | |||
| ||||
Custodian fees | 15,144 | |||
| ||||
Distribution fees: | ||||
Class A | 211,257 | |||
| ||||
Class C | 224,695 | |||
| ||||
Transfer agent fees – A, C and Y | 1,008,514 | |||
| ||||
Transfer agent fees – R5 | 2,238 | |||
| ||||
Transfer agent fees – R6 | 4,686 | |||
| ||||
Trustees’ and officers’ fees and benefits | 16,688 | |||
| ||||
Registration and filing fees | 45,310 | |||
| ||||
Reports to shareholders | 97,871 | |||
| ||||
Professional services fees | 45,248 | |||
| ||||
Other | 24,539 | |||
| ||||
Total expenses | 5,427,176 | |||
| ||||
Less: Fees waived and expense offset arrangement(s) | (15,792 | ) | ||
| ||||
Net expenses | 5,411,384 | |||
| ||||
Net investment income | 15,976,245 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
| ||||
Investment securities | (4,141,282 | ) | ||
| ||||
Foreign currencies | 25,661 | |||
| ||||
(4,115,621 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | 7,684,976 | |||
| ||||
Foreign currencies | 8,925 | |||
| ||||
7,693,901 | ||||
| ||||
Net realized and unrealized gain | 3,578,280 | |||
| ||||
Net increase in net assets resulting from operations | $ | 19,554,525 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Global Real Estate Income Fund
Statement of Changes in Net Assets
For the six months ended February 28, 2019 and the year ended August 31, 2018
(Unaudited)
February 28, 2019 | August 31, 2018 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 15,976,245 | $ | 37,937,684 | ||||
| ||||||||
Net realized gain (loss) | (4,115,621 | ) | 733,222 | |||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 7,693,901 | (2,184,147 | ) | |||||
| ||||||||
Net increase in net assets resulting from operations | 19,554,525 | 36,486,759 | ||||||
| ||||||||
Distributions to shareholders from distributable earnings(1): | ||||||||
Class A | (3,168,257 | ) | (8,484,298 | ) | ||||
| ||||||||
Class B | – | (6,683 | ) | |||||
| ||||||||
Class C | (690,023 | ) | (1,934,737 | ) | ||||
| ||||||||
Class Y | (12,645,457 | ) | (25,515,547 | ) | ||||
| ||||||||
Class R5 | (97,576 | ) | (290,676 | ) | ||||
| ||||||||
Class R6 | (2,688,066 | ) | (6,295,516 | ) | ||||
| ||||||||
Total distributions to shareholders from distributable earnings | (19,289,379 | ) | (42,527,457 | ) | ||||
| ||||||||
Share transactions-net: | ||||||||
Class A | (16,033,695 | ) | (53,138,358 | ) | ||||
| ||||||||
Class B | – | (474,886 | ) | |||||
| ||||||||
Class C | (12,612,139 | ) | (17,862,650 | ) | ||||
| ||||||||
Class Y | (79,974,331 | ) | 218,321,594 | |||||
| ||||||||
Class R5 | (1,573,804 | ) | (1,734,899 | ) | ||||
| ||||||||
Class R6 | (6,219,551 | ) | (14,277,066 | ) | ||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (116,413,520 | ) | 130,833,735 | |||||
| ||||||||
Net increase (decrease) in net assets | (116,148,374 | ) | 124,793,037 | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 1,052,544,732 | 927,751,695 | ||||||
| ||||||||
End of period | $ | 936,396,358 | $ | 1,052,544,732 | ||||
|
(1) | The Securities and Exchange Commission eliminated the requirement to disclose distribution components separately, except for tax return of capital. For the year ended August 31, 2018, distributions to shareholders from distributable earnings consisted of distributions from net investment income. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Global Real Estate Income Fund
Notes to Financial Statements
February 28, 2019
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Global 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 anopen-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
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 C, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with afront-end sales charge unless certain waiver criteria are met. 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, Class R5 and Class R6 shares are sold at net asset value.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946,Financial Services - Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations- Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in theover-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments inopen-end andclosed-end registered investment companies that do not trade on an exchange are valued at theend-of-day net asset value per share. Investments inopen-end andclosed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such asinstitution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
12 Invesco Global Real Estate Income Fund
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 orlosses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities.Pay-in-kind interest income andnon-cash dividend income received in the form of securitiesin-lieu of cash are recorded at the fair value of the securities received. 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 theex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
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 on a timely basis 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 as a reduction of the cost of the related investment. 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, theinvestment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions- Distributions from net investment income, if any, are declared and paid quarterly and are recorded on theex-dividend date.Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on theex-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 of 1986, asamended (the “Internal Revenue Code”) necessary to qualify as a regulated investment company and to distribute substantially all of the Trust’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Trust’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Trust 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 Rule12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transferagency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets.Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates- The preparation of financial statements in conformity with accounting principles generally accepted in theUnited 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 theperiod-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 indemnifiedagainst certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations- Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major |
13 Invesco Global Real Estate Income Fund
currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the 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. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. | Forward Foreign Currency Contracts- The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt deliveryand settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount(non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the dailymark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
K. | Other Risks- The Fund’s investments are concentrated in a comparatively narrow segment of the economy. Consequently, the Fund may tendto 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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | ||||
First $250 million | 0.75 | % | |||
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 | % |
For the six months ended February 28, 2019, the effective advisory fees incurred by the Fund was 0.74%.
Under the terms of a mastersub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “AffiliatedSub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such AffiliatedSub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such AffiliatedSub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2019, 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 C, Class Y, Class R5 and Class R6 shares to 2.00%, 2.75%, 1.75%, 1.75% and 1.75%, respectively, of the Fund’s average daily net assets (the ”expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the net annual fund operating expenses and/or reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary ornon-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2019.
14 Invesco Global Real Estate Income Fund
During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limit.
Further, the Adviser has contractually agreed, through at least June 30, 2020, 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 28, 2019, the Adviser waived advisory fees of $14,894.
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 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into asub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and 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 orsub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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 Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule12b-1 under the 1940 Act with respect to the Fund’s Class A 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 C shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 28, 2019, expenses incurred under the Plans are shown in the Statement of Operations asDistribution 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 28, 2019, IDI advised the Fund that IDI retained $4,172 infront-end sales commissions from the sale of Class A shares and $2,124 and $1,376 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.
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 28, 2019. 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.
15 Invesco Global Real Estate Income Fund
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Investments in Securities | |||||||||||||||||
Australia | $ | 29,607,031 | $ | – | $ | – | $29,607,031 | ||||||||||
Canada | 17,245,721 | – | – | 17,245,721 | |||||||||||||
China | – | 1,108,554 | – | 1,108,554 | |||||||||||||
France | 19,076,401 | 6,722,138 | – | 25,798,539 | |||||||||||||
Germany | 22,371,030 | 8,927,605 | – | 31,298,635 | |||||||||||||
Hong Kong | 27,726,217 | 25,599,182 | – | 53,325,399 | |||||||||||||
Ireland | 1,463,788 | – | – | 1,463,788 | |||||||||||||
Japan | 49,489,543 | 15,981,380 | – | 65,470,923 | |||||||||||||
Netherlands | 4,721,567 | – | – | 4,721,567 | |||||||||||||
Singapore | 11,555,914 | 3,466,472 | – | 15,022,386 | |||||||||||||
Spain | 2,645,258 | 4,692,490 | – | 7,337,748 | |||||||||||||
Sweden | 2,224,365 | 3,029,421 | – | 5,253,786 | |||||||||||||
Switzerland | 7,821,942 | – | – | 7,821,942 | |||||||||||||
United Kingdom | 30,018,779 | – | – | 30,018,779 | |||||||||||||
United States | 434,651,499 | 185,914,992 | – | 620,566,491 | |||||||||||||
Money Market Funds | 17,964,463 | – | – | 17,964,463 | |||||||||||||
Total Investments | $ | 678,583,518 | $ | 255,442,234 | $ | – | $934,025,752 |
NOTE 4–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $898.
NOTE 5–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefitsinclude 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, andTrustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan.Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 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 atperiod-end, are shown in the Statement of Assets and Liabilities under the payable captionAmount 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 GAAP. 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 fiscalyear-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. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2018, as follows:
16 Invesco Global Real Estate Income Fund
Capital Loss Carryforward* |
| ||||||||||||||
Expiration | Short-Term | Long-Term | Total | ||||||||||||
Not subject to expiration | $ | 1,129,141 | $ | 2,695,372 | $ | 3,824,513 |
* | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 8–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2019 was $199,598,835 and $300,602,650, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reportingperiod-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| |||
| ||||
Aggregate unrealized appreciation of investments | $ | 66,103,514 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (27,438,155 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 38,665,359 | ||
| ||||
Cost of investments for tax purposes is $895,360,393. |
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
February 28, 2019(a) | August 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 1,290,676 | $ | 11,443,541 | 2,352,683 | $ | 21,075,015 | ||||||||||
| ||||||||||||||||
Class B(b) | – | – | 51 | 462 | ||||||||||||
| ||||||||||||||||
Class C | 168,150 | 1,472,387 | 252,180 | 2,271,886 | ||||||||||||
| ||||||||||||||||
Class Y | 8,962,977 | 78,508,542 | 44,027,948 | 395,465,821 | ||||||||||||
| ||||||||||||||||
Class R5 | 28,857 | 256,505 | 109,764 | 989,529 | ||||||||||||
| ||||||||||||||||
Class R6 | 228,955 | 2,002,364 | 1,078,932 | 9,693,490 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 291,723 | 2,580,363 | 781,229 | 7,037,420 | ||||||||||||
| ||||||||||||||||
Class B(b) | – | – | 617 | 5,613 | ||||||||||||
| ||||||||||||||||
Class C | 58,082 | 512,962 | 163,554 | 1,473,882 | ||||||||||||
| ||||||||||||||||
Class Y | 638,947 | 5,624,161 | 1,822,584 | 16,371,139 | ||||||||||||
| ||||||||||||||||
Class R5 | 9,945 | 88,000 | 27,660 | 248,859 | ||||||||||||
| ||||||||||||||||
Class R6 | 303,723 | 2,680,076 | 698,413 | 6,279,825 | ||||||||||||
| ||||||||||||||||
Conversion of Class B shares to Class A shares:(c) | ||||||||||||||||
Class A | – | – | 33,725 | 309,934 | ||||||||||||
| ||||||||||||||||
Class B | – | – | (33,848 | ) | (309,934 | ) | ||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (3,425,293 | ) | (30,057,599 | ) | (9,062,612 | ) | (81,560,727 | ) | ||||||||
| ||||||||||||||||
Class B(b) | – | – | (18,872 | ) | (171,027 | ) | ||||||||||
| ||||||||||||||||
Class C | (1,654,445 | ) | (14,597,488 | ) | (2,406,386 | ) | (21,608,418 | ) | ||||||||
| ||||||||||||||||
Class Y | (18,356,418 | ) | (164,107,034 | ) | (21,612,083 | ) | (193,515,366 | ) | ||||||||
| ||||||||||||||||
Class R5 | (220,748 | ) | (1,918,309 | ) | (330,249 | ) | (2,973,287 | ) | ||||||||
| ||||||||||||||||
Class R6 | (1,248,590 | ) | (10,901,991 | ) | (3,379,609 | ) | (30,250,381 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (12,923,459 | ) | $ | (116,413,520 | ) | 14,505,681 | $ | 130,833,735 | ||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 46% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
In addition, 8% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser.
(b) | Class B shares activity for the period September 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
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.
Net asset value, beginning of period | Net investment income(a) | Net gains (losses) on securities realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized | Total distributions | Net asset of period | Total return (b) | Net assets, (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net fee waivers and/or expenses absorbed | Ratio of net investment income to average net assets | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $ | 9.11 | $ | 0.13 | $ | 0.04 | $ | 0.17 | $ | (0.16 | ) | $ | – | $ | (0.16 | ) | $ | 9.12 | 1.95 | % | $ | 172,122 | 1.30 | %(d) | 1.30 | %(d) | 3.05 | %(d) | 21 | % | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 9.18 | 0.30 | (0.02 | ) | 0.28 | (0.35 | ) | – | (0.35 | ) | 9.11 | 3.11 | 188,658 | 1.24 | 1.24 | 3.33 | 59 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 9.30 | 0.26 | (0.02 | ) | 0.24 | (0.36 | ) | – | (0.36 | ) | 9.18 | 2.76 | 244,129 | 1.25 | 1.25 | 2.88 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 8.81 | 0.30 | 0.67 | 0.97 | (0.28 | ) | (0.20 | ) | (0.48 | ) | 9.30 | 11.54 | 385,887 | 1.24 | 1.24 | 3.37 | 60 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 9.48 | 0.29 | (0.57 | ) | (0.28 | ) | (0.38 | ) | (0.01 | ) | (0.39 | ) | 8.81 | (3.08 | ) | 499,799 | 1.22 | 1.22 | 3.12 | 60 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 8.52 | 0.29 | 1.19 | 1.48 | (0.42 | ) | (0.10 | ) | (0.52 | ) | 9.48 | 18.13 | 609,824 | 1.27 | 1.27 | 3.26 | 61 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 9.09 | 0.10 | 0.05 | 0.15 | (0.13 | ) | – | (0.13 | ) | 9.11 | 1.68 | 38,994 | 2.05 | (d) | 2.05 | (d) | 2.30 | (d) | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 9.16 | 0.23 | (0.02 | ) | 0.21 | (0.28 | ) | – | (0.28 | ) | 9.09 | 2.34 | 51,925 | 1.99 | 1.99 | 2.58 | 59 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 9.28 | 0.19 | (0.02 | ) | 0.17 | (0.29 | ) | – | (0.29 | ) | 9.16 | 1.99 | 70,537 | 2.00 | 2.00 | 2.13 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 8.79 | 0.23 | 0.67 | 0.90 | (0.21 | ) | (0.20 | ) | (0.41 | ) | 9.28 | 10.72 | 95,245 | 1.99 | 1.99 | 2.62 | 60 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 9.46 | 0.22 | (0.57 | ) | (0.35 | ) | (0.31 | ) | (0.01 | ) | (0.32 | ) | 8.79 | (3.83 | ) | 103,988 | 1.97 | 1.97 | 2.37 | 60 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 8.51 | 0.23 | 1.18 | 1.41 | (0.36 | ) | (0.10 | ) | (0.46 | ) | 9.46 | 17.14 | 118,319 | 2.02 | 2.02 | 2.51 | 61 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 9.08 | 0.14 | 0.05 | 0.19 | (0.17 | ) | – | (0.17 | ) | 9.10 | 2.19 | 591,638 | 1.05 | (d) | 1.05 | (d) | 3.30 | (d) | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 9.15 | 0.32 | (0.02 | ) | 0.30 | (0.37 | ) | – | (0.37 | ) | 9.08 | 3.37 | 670,338 | 0.99 | 0.99 | 3.58 | 59 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 9.28 | 0.28 | (0.03 | ) | 0.25 | (0.38 | ) | – | (0.38 | ) | 9.15 | 2.91 | 453,479 | 1.00 | 1.00 | 3.13 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 8.79 | 0.32 | 0.67 | 0.99 | (0.30 | ) | (0.20 | ) | (0.50 | ) | 9.28 | 11.84 | 396,910 | 0.99 | 0.99 | 3.62 | 60 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 9.45 | 0.31 | (0.55 | ) | (0.24 | ) | (0.41 | ) | (0.01 | ) | (0.42 | ) | 8.79 | (2.75 | ) | 398,283 | 0.97 | 0.97 | 3.37 | 60 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 8.50 | 0.32 | 1.17 | 1.49 | (0.44 | ) | (0.10 | ) | (0.54 | ) | 9.45 | 18.33 | 428,854 | 1.02 | 1.02 | 3.51 | 61 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 9.11 | 0.15 | 0.04 | 0.19 | (0.18 | ) | – | (0.18 | ) | 9.12 | 2.15 | 4,094 | 0.91 | (d) | 0.91 | (d) | 3.44 | (d) | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 9.18 | 0.33 | (0.02 | ) | 0.31 | (0.38 | ) | – | (0.38 | ) | 9.11 | 3.46 | 5,745 | 0.92 | 0.92 | 3.65 | 59 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 9.30 | 0.29 | (0.02 | ) | 0.27 | (0.39 | ) | – | (0.39 | ) | 9.18 | 3.10 | 7,557 | 0.93 | 0.93 | 3.20 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 8.81 | 0.33 | 0.67 | 1.00 | (0.31 | ) | (0.20 | ) | (0.51 | ) | 9.30 | 11.91 | 12,898 | 0.90 | 0.90 | 3.71 | 60 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 9.47 | 0.32 | (0.56 | ) | (0.24 | ) | (0.41 | ) | (0.01 | ) | (0.42 | ) | 8.81 | (2.68 | ) | 14,204 | 0.91 | 0.91 | 3.43 | 60 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 8.52 | 0.32 | 1.18 | 1.50 | (0.45 | ) | (0.10 | ) | (0.55 | ) | 9.47 | 18.40 | 24,749 | 0.91 | 0.91 | 3.62 | 61 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 9.11 | 0.15 | 0.04 | 0.19 | (0.18 | ) | – | (0.18 | ) | 9.12 | 2.19 | 129,548 | 0.82 | (d) | 0.82 | (d) | 3.53 | (d) | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 9.17 | 0.34 | (0.02 | ) | 0.32 | (0.38 | ) | – | (0.38 | ) | 9.11 | 3.66 | 135,878 | 0.82 | 0.82 | 3.75 | 59 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 9.30 | 0.29 | (0.02 | ) | 0.27 | (0.40 | ) | – | (0.40 | ) | 9.17 | 3.09 | 151,573 | 0.84 | 0.84 | 3.29 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 8.81 | 0.34 | 0.67 | 1.01 | (0.32 | ) | (0.20 | ) | (0.52 | ) | 9.30 | 12.00 | 155,908 | 0.82 | 0.82 | 3.79 | 60 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 9.48 | 0.33 | (0.57 | ) | (0.24 | ) | (0.42 | ) | (0.01 | ) | (0.43 | ) | 8.81 | (2.70 | ) | 1,449 | 0.84 | 0.84 | 3.50 | 60 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 8.52 | 0.34 | 1.18 | 1.52 | (0.46 | ) | (0.10 | ) | (0.56 | ) | 9.48 | 18.62 | 1,420 | 0.87 | 0.87 | 3.66 | 61 |
(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. Not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $170,406, $45,311, $641,981, $4,525 and $129,095 for Class A, Class C, Class Y, Class R5 and Class R6 shares, respectively. |
18 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, 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, 2018 through February 28, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
HYPOTHETICAL | ||||||||||||
ACTUAL | (5% annual return before expenses) | |||||||||||
Beginning | Ending | Expenses | Ending | Expenses | Annualized | |||||||
Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||
(09/01/18) | (02/28/19)1 | Period2 | (02/28/19) | Period2 | Ratio | |||||||
Class A | $1,000.00 | $1,019.50 | $6.51 | $1,018.35 | $6.51 | 1.30% | ||||||
Class C | 1,000.00 | 1,016.80 | 10.25 | 1,014.63 | 10.24 | 2.05 | ||||||
Class Y | 1,000.00 | 1,021.90 | 5.26 | 1,019.59 | 5.26 | 1.05 | ||||||
Class R5 | 1,000.00 | 1,021.50 | 4.56 | 1,020.28 | 4.56 | 0.91 | ||||||
Class R6 | 1,000.00 | 1,021.90 | 4.11 | 1,020.73 | 4.11 | 0.82 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2018 through February 28, 2019, 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 181/365 to reflect the most recent fiscal half year. |
19 Invesco Global Real Estate Income Fund
Explore High-Conviction Investing with Invesco
Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
◾ Fund reports and prospectuses
◾ Quarterly statements
◾ Daily confirmations
◾ Tax forms
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on FormN-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s FormsN-Q (or any successor Form) on the SEC website at sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov. Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd. |
|
SEC file numbers:811-09913 and333-36074 | Invesco Distributors, Inc. | GREI-SAR-1 04222019 0801 |
| ||||
![]() | Semiannual Report to Shareholders
| February 28, 2019 | ||
| ||||
Invesco Growth and Income Fund
| ||||
Nasdaq: | ||||
A: ACGIX ∎ C: ACGKX ∎ R: ACGLX ∎ Y: ACGMX ∎ R5: ACGQX ∎ R6: GIFFX
|
| ||||
2
| Fund Performance
| |||
4
| Letters to Shareholders
| |||
5
| Schedule of Investments
| |||
9
| Financial Statements
| |||
12
| Notes to Financial Statements
| |||
18
| Financial Highlights
| |||
20 | Fund Expenses
|
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800 959 4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most currentmonth-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
| ||||
Fund vs. Indexes Cumulative total returns, 8/31/18 to 2/28/19, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) orfront-end sales charges, which would have reduced performance. |
| |||
Class A Shares | -4.90 | % | ||
Class C Shares | -5.27 | |||
Class R Shares | -5.06 | |||
Class Y Shares | -4.81 | |||
Class R5 Shares | -4.77 | |||
Class R6 Shares | -4.75 | |||
S&P 500 Index▼ (Broad Market Index) | | -3.04 | | |
Russell 1000 Value Index∎ (Style-Specific Index) | -1.62 | |||
Lipper Large-Cap Value Funds Index¨ (Peer Group Index) | | -2.41 | | |
Source(s):▼FactSet Research Systems Inc.;∎RIMES Technologies Corp.;¨Lipper Inc.
| ||||
TheS&P 500®Indexis an unmanaged index considered representative of the US stock market. TheRussell 1000®Value Indexis an unmanaged index considered representative oflarge-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. TheLipperLarge-Cap Value Funds Indexis an unmanaged index considered representative oflarge-cap value funds tracked by Lipper. The Fund is not managed to track the performance of any particular index, including the indexes described 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. |
|
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us.Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
2 Invesco Growth and Income Fund
Average Annual Total Returns |
| |||||
As of 2/28/19, including maximum applicable sales charges
|
| |||||
Class A Shares |
| |||||
Inception (8/1/46) | 9.36 | % | ||||
10 Years | 13.42 | |||||
5 Years | 5.92 | |||||
1 Year | -8.33 | |||||
Class C Shares* |
| |||||
Inception (8/2/93) | 9.24 | % | ||||
10 Years | 13.22 | |||||
5 Years | 6.34 | |||||
1 Year | -4.56 | |||||
Class R Shares |
| |||||
Inception (10/1/02) | 8.62 | % | ||||
10 Years | 13.77 | |||||
5 Years | 6.85 | |||||
1 Year | -3.29 | |||||
Class Y Shares |
| |||||
Inception (10/19/04) | 8.09 | % | ||||
10 Years | 14.34 | |||||
5 Years | 7.39 | |||||
1 Year | -2.78 | |||||
Class R5 Shares |
| |||||
10 Years | 14.42 | % | ||||
5 Years | 7.49 | |||||
1 Year | -2.70 | |||||
Class R6 Shares |
| |||||
10 Years | 14.37 | % | ||||
5 Years | 7.58 | |||||
1 Year | -2.61 | |||||
* Effective January 26, 2019, Class C share performance includes the conversion to A shares after 10 years. |
|
Effective June 1, 2010, Class A, 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 C, Class R and Class Y shares, respectively, of Invesco Van Kampen Growth and Income Fund (renamed Invesco Growth and Income Fund). Returns shown above, prior to June 1, 2010, for Class A, Class C, Class R and Class Y shares are blended returns of the predecessor fund and Invesco Growth and Income Fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R5 shares incepted on June 1, 2010. Performance shown prior to that date is that of the predecessor fund’s Class A shares and includes the12b-1 fees applicable to Class A shares.
Class R6 shares incepted on September 24, 2012. Performance
Average Annual Total Returns |
| |||||
As of 12/31/18, the most recent calendar quarter end, including maximum applicable sales charges
|
| |||||
Class A Shares |
| |||||
Inception (8/1/46) | 9.20 | % | ||||
10 Years | 9.64 | |||||
5 Years | 3.61 | |||||
1 Year | -18.22 | |||||
Class C Shares |
| |||||
Inception (8/2/93) | 8.29 | % | ||||
10 Years | 9.44 | |||||
5 Years | 4.01 | |||||
1 Year | -14.86 | |||||
Class R Shares |
| |||||
Inception (10/1/02) | 7.91 | % | ||||
10 Years | 9.98 | |||||
5 Years | 4.52 | |||||
1 Year | -13.71 | |||||
Class Y Shares |
| |||||
Inception (10/19/04) | 7.27 | % | ||||
10 Years | 10.53 | |||||
5 Years | 5.05 | |||||
1 Year | -13.24 | |||||
Class R5 Shares |
| |||||
10 Years | 10.60 | % | ||||
5 Years | 5.14 | |||||
1 Year | -13.20 | |||||
Class R6 Shares |
| |||||
10 Years | 10.55 | % | ||||
5 Years | 5.23 | |||||
1 Year | -13.12 |
shown prior to that date is that of Class A shares and includes the12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recentmonth-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, Class R5 and Class R6 shares was 0.80%, 1.53%, 1.05%,
0.55%, 0.48% and 0.38%, 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 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, Class R5 and Class R6 shares do not have afront-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 Invesco Growth and Income Fund
![]() | Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory andsub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper, Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
![]() | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward. Our website,invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings |
and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
4 Invesco Growth and Income Fund
February 28, 2019
(Unaudited)
Shares | Value | |||||||
| ||||||||
Common Stocks & Other Equity Interests-95.75% |
| |||||||
Aerospace & Defense-1.86% |
| |||||||
General Dynamics Corp. | 790,579 | $ | 134,572,357 | |||||
| ||||||||
Apparel, Accessories & Luxury Goods-0.99% |
| |||||||
Capri Holdings Ltd.(b) | 1,576,302 | 71,879,371 | ||||||
| ||||||||
Asset Management & Custody Banks-1.52% |
| |||||||
Northern Trust Corp. | 195,040 | 18,177,728 | ||||||
| ||||||||
State Street Corp. | 1,274,386 | 91,590,122 | ||||||
| ||||||||
109,767,850 | ||||||||
| ||||||||
Automobile Manufacturers-2.59% |
| |||||||
General Motors Co. | 4,752,122 | 187,613,777 | ||||||
| ||||||||
Biotechnology-0.90% |
| |||||||
Celgene Corp.(b) | 786,744 | 65,394,161 | ||||||
| ||||||||
Broadcasting-0.73% |
| |||||||
CBS Corp., Class B | 1,047,330 | 52,586,439 | ||||||
| ||||||||
Building Products-1.68% |
| |||||||
Johnson Controls International PLC | 3,456,921 | 121,925,604 | ||||||
| ||||||||
Cable & Satellite-2.93% |
| |||||||
Charter Communications, Inc., Class A(b) | 392,850 | 135,497,893 | ||||||
| ||||||||
Comcast Corp., Class A | 1,977,889 | 76,484,968 | ||||||
| ||||||||
211,982,861 | ||||||||
| ||||||||
Communications Equipment-2.60% |
| |||||||
Cisco Systems, Inc. | 3,272,014 | 169,392,165 | ||||||
| ||||||||
Juniper Networks, Inc. | 691,982 | 18,738,872 | ||||||
| ||||||||
188,131,037 | ||||||||
| ||||||||
Diversified Banks-13.45% |
| |||||||
Bank of America Corp. | 10,056,786 | 292,451,337 | ||||||
| ||||||||
Citigroup Inc. | 5,281,054 | 337,881,835 | ||||||
| ||||||||
JPMorgan Chase & Co. | 1,927,793 | 201,184,478 | ||||||
| ||||||||
Wells Fargo & Co. | 2,863,415 | 142,855,774 | ||||||
| ||||||||
974,373,424 | ||||||||
| ||||||||
Diversified Chemicals-1.20% |
| |||||||
DowDuPont, Inc. | 1,627,318 | 86,622,137 | ||||||
| ||||||||
Electric Utilities-1.09% |
| |||||||
Duke Energy Corp. | 461,203 | 41,351,461 | ||||||
| ||||||||
FirstEnergy Corp. | 930,687 | 37,925,495 | ||||||
| ||||||||
79,276,956 | ||||||||
| ||||||||
Fertilizers & Agricultural Chemicals-1.67% |
| |||||||
Mosaic Co. (The) | 2,159,818 | 67,537,509 | ||||||
| ||||||||
Nutrien Ltd. (Canada) | 985,684 | 53,660,637 | ||||||
| ||||||||
121,198,146 | ||||||||
|
Shares | Value | |||||||
| ||||||||
Food Distributors-1.26% |
| |||||||
US Foods Holding Corp.(b) | 2,597,099 | $ | 91,521,769 | |||||
| ||||||||
Health Care Distributors-1.33% |
| |||||||
McKesson Corp. | 755,433 | 96,060,860 | ||||||
| ||||||||
Health Care Equipment-2.43% |
| |||||||
Medtronic PLC | 818,022 | 74,030,991 | ||||||
| ||||||||
Zimmer Biomet Holdings, Inc. | 823,102 | 102,163,420 | ||||||
| ||||||||
176,194,411 | ||||||||
| ||||||||
Health Care Services-1.51% |
| |||||||
CVS Health Corp. | 1,890,731 | 109,340,974 | ||||||
| ||||||||
Home Improvement Retail-1.00% |
| |||||||
Kingfisher PLC (United Kingdom) | 22,471,691 | 72,158,679 | ||||||
| ||||||||
Hotels, Resorts & Cruise Lines-2.19% |
| |||||||
Carnival Corp. | 2,741,728 | 158,362,209 | ||||||
| ||||||||
Industrial Machinery-1.34% |
| |||||||
Ingersoll-Rand PLC | 916,035 | 96,696,655 | ||||||
| ||||||||
Insurance Brokers-1.94% |
| |||||||
Aon PLC | 182,890 | 31,371,122 | ||||||
| ||||||||
Willis Towers Watson PLC | 634,612 | 109,165,956 | ||||||
| ||||||||
140,537,078 | ||||||||
| ||||||||
Integrated Oil & Gas-5.82% |
| |||||||
BP PLC (United Kingdom) | 17,337,303 | 122,887,022 | ||||||
| ||||||||
Occidental Petroleum Corp. | 2,127,431 | 140,729,561 | ||||||
| ||||||||
Royal Dutch Shell PLC, Class A (United Kingdom) | 5,066,305 | 157,879,161 | ||||||
| ||||||||
421,495,744 | ||||||||
| ||||||||
Internet & Direct Marketing Retail-1.23% |
| |||||||
eBay, Inc.(b) | 2,400,092 | 89,163,418 | ||||||
| ||||||||
Investment Banking & Brokerage-3.77% |
| |||||||
Goldman Sachs Group, Inc. (The) | 539,655 | 106,150,139 | ||||||
| ||||||||
Morgan Stanley | 3,968,640 | 166,603,507 | ||||||
| ||||||||
272,753,646 | ||||||||
| ||||||||
IT Consulting & Other Services-1.27% |
| |||||||
Cognizant Technology Solutions Corp., Class A | 1,295,024 | 91,920,803 | ||||||
| ||||||||
Managed Health Care-1.13% |
| |||||||
Anthem, Inc. | 273,192 | 82,157,030 | ||||||
| ||||||||
Multi-line Insurance-2.50% |
| |||||||
American International Group, Inc. | 4,192,699 | 181,124,597 | ||||||
| ||||||||
Oil & Gas Equipment & Services-1.95% |
| |||||||
Schlumberger Ltd. | 1,210,527 | 53,335,820 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 Invesco Growth and Income Fund
Shares | Value | |||||||
| ||||||||
Oil & Gas Equipment & Services-(continued) |
| |||||||
TechnipFMC PLC (United Kingdom) | 3,951,378 | $ | 88,076,215 | |||||
| ||||||||
141,412,035 | ||||||||
| ||||||||
Oil & Gas Exploration & Production-5.15% |
| |||||||
Anadarko Petroleum Corp. | 1,883,707 | 81,941,255 | ||||||
| ||||||||
Canadian Natural Resources Ltd. (Canada) | 2,811,298 | 79,855,860 | ||||||
| ||||||||
Devon Energy Corp. | 4,131,879 | 121,931,749 | ||||||
| ||||||||
Marathon Oil Corp. | 5,352,801 | 88,856,497 | ||||||
| ||||||||
372,585,361 | ||||||||
| ||||||||
Other Diversified Financial Services-1.64% |
| |||||||
AXA Equitable Holdings, Inc. | 2,383,501 | 45,572,539 | ||||||
| ||||||||
Voya Financial, Inc. | 1,447,538 | 73,201,997 | ||||||
| ||||||||
118,774,536 | ||||||||
| ||||||||
Packaged Foods & Meats-2.15% |
| |||||||
Mondelez International, Inc., Class A | 3,305,211 | 155,873,751 | ||||||
| ||||||||
Pharmaceuticals-8.40% |
| |||||||
Bristol-Myers Squibb Co. | 1,664,046 | 85,964,616 | ||||||
| ||||||||
Johnson & Johnson | 1,617,295 | 220,987,189 | ||||||
| ||||||||
Merck & Co., Inc. | 1,055,291 | 85,784,605 | ||||||
| ||||||||
Novartis AG (Switzerland) | 1,494,451 | 136,320,644 | ||||||
| ||||||||
Sanofi (France) | 945,111 | 79,013,671 | ||||||
| ||||||||
608,070,725 | ||||||||
| ||||||||
Railroads-1.25% |
| |||||||
CSX Corp. | 1,248,574 | 90,733,873 | ||||||
| ||||||||
Regional Banks-4.44% |
| |||||||
Citizens Financial Group, Inc. | 4,295,536 | 158,677,100 | ||||||
| ||||||||
Fifth Third Bancorp | 1,589,825 | 43,847,373 | ||||||
|
Shares | Value | |||||||
| ||||||||
Regional Banks-(continued) |
| |||||||
First Horizon National Corp. | 2,856,489 | $ | 44,646,923 | |||||
| ||||||||
PNC Financial Services Group, Inc. (The) | 589,594 | 74,300,636 | ||||||
| ||||||||
321,472,032 | ||||||||
| ||||||||
Semiconductors-3.10% |
| |||||||
Intel Corp. | 3,167,630 | 167,757,685 | ||||||
| ||||||||
QUALCOMM, Inc. | 1,060,053 | 56,596,229 | ||||||
| ||||||||
224,353,914 | ||||||||
| ||||||||
Systems Software-2.25% |
| |||||||
Oracle Corp. | 3,131,238 | 163,231,437 | ||||||
| ||||||||
Technology Hardware, Storage & Peripherals-1.09% |
| |||||||
Apple Inc. | 453,939 | 78,599,538 | ||||||
| ||||||||
Tobacco-2.40% |
| |||||||
Philip Morris International Inc. | 1,999,164 | 173,807,318 | ||||||
| ||||||||
Total Common Stocks & Other Equity Interests (Cost $5,353,126,461) |
| 6,933,726,513 | ||||||
| ||||||||
Money Market Funds-3.53% |
| |||||||
Invesco Government & Agency Portfolio-Institutional Class, 2.30%(c) | 89,521,017 | 89,521,017 | ||||||
| ||||||||
Invesco Liquid Assets Portfolio-Institutional Class, 2.51%(c) | 63,936,727 | 63,955,908 | ||||||
| ||||||||
Invesco Treasury Portfolio-Institutional Class, 2.29%(c) | 102,309,733 | 102,309,733 | ||||||
| ||||||||
Total Money Market Funds (Cost $255,779,115) |
| 255,786,658 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES-99.28% (Cost $5,608,905,576) |
| 7,189,513,171 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES-0.72% |
| 52,249,332 | ||||||
| ||||||||
NET ASSETS-100.00% | $ | 7,241,762,503 | ||||||
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the7-day SEC standardized yield as of February 28, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Growth and Income Fund
Portfolio Composition
By sector, based on Net Assets
as of February 28, 2019
Financials | 29.26% | |||
| ||||
Health Care | 15.70 | |||
| ||||
Energy | 12.92 | |||
| ||||
Information Technology | 10.31 | |||
| ||||
Consumer Discretionary | 8.00 | |||
| ||||
Industrials | 6.13 | |||
| ||||
Consumer Staples | 5.81 | |||
| ||||
Communication Services | 3.66 | |||
| ||||
Materials | 2.87 | |||
| ||||
Utilities | 1.09 | |||
| ||||
Money Market Funds, Plus Other Assets Less Liabilities | 4.25 | |||
|
Open Forward Foreign Currency Contracts | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
Settlement | Contract to | Unrealized | ||||||||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||||||
| ||||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
03/01/2019 | Bank of New York Mellon (The) | CHF | 47,983,072 | USD | 48,531,183 | $ | 454,361 | |||||||||||||||||
| ||||||||||||||||||||||||
03/01/2019 | Bank of New York Mellon (The) | EUR | 25,971,651 | USD | 29,761,434 | 219,996 | ||||||||||||||||||
| ||||||||||||||||||||||||
03/01/2019 | Bank of New York Mellon (The) | USD | 51,001,043 | CHF | 50,980,796 | 79,359 | ||||||||||||||||||
| ||||||||||||||||||||||||
03/01/2019 | Bank of New York Mellon (The) | USD | 29,253,569 | EUR | 25,749,114 | 34,745 | ||||||||||||||||||
| ||||||||||||||||||||||||
03/01/2019 | Bank of New York Mellon (The) | USD | 131,135,601 | GBP | 100,276,892 | 1,866,620 | ||||||||||||||||||
| ||||||||||||||||||||||||
03/01/2019 | State Street Bank & Trust Co. | CHF | 47,983,099 | USD | 48,547,709 | 470,860 | ||||||||||||||||||
| ||||||||||||||||||||||||
03/01/2019 | State Street Bank & Trust Co. | EUR | 25,971,649 | USD | 29,773,249 | 231,813 | ||||||||||||||||||
| ||||||||||||||||||||||||
03/01/2019 | State Street Bank & Trust Co. | USD | 44,989,694 | CHF | 44,985,375 | 83,574 | ||||||||||||||||||
| ||||||||||||||||||||||||
03/01/2019 | State Street Bank & Trust Co. | USD | 29,758,909 | EUR | 26,194,186 | 35,652 | ||||||||||||||||||
| ||||||||||||||||||||||||
03/01/2019 | State Street Bank & Trust Co. | USD | 116,070,615 | GBP | 88,736,289 | 1,624,731 | ||||||||||||||||||
| ||||||||||||||||||||||||
03/29/2019 | Bank of New York Mellon (The) | CAD | 38,890,447 | USD | 29,586,634 | | 13,049 | | ||||||||||||||||
| ||||||||||||||||||||||||
03/29/2019 | State Street Bank & Trust Co. | CAD | 34,941,250 | USD | 26,577,174 | 6,690 | ||||||||||||||||||
| ||||||||||||||||||||||||
Subtotal–Appreciation | 5,121,450 | |||||||||||||||||||||||
| ||||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
03/01/2019 | Bank of New York Mellon (The) | CAD | 36,803,394 | USD | 27,745,406 | (221,761 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
03/01/2019 | Bank of New York Mellon (The) | GBP | 94,506,588 | USD | 124,720,534 | (628,248 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
03/01/2019 | Bank of New York Mellon (The) | USD | 29,477,677 | CAD | 38,771,989 | (14,560 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
03/01/2019 | State Street Bank & Trust Co. | CAD | 36,803,416 | USD | 27,758,041 | (209,142 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
03/01/2019 | State Street Bank & Trust Co. | GBP | 94,506,592 | USD | 124,728,855 | (619,931 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
03/01/2019 | State Street Bank & Trust Co. | USD | 26,479,142 | CAD | 34,834,821 | (7,908 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
03/29/2019 | Bank of New York Mellon (The) | CHF | 50,919,531 | USD | 51,070,291 | (69,654 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
03/29/2019 | Bank of New York Mellon (The) | EUR | 25,715,748 | USD | 29,282,522 | (29,534 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
03/29/2019 | Bank of New York Mellon (The) | GBP | 100,171,970 | USD | 131,182,207 | (1,852,607 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
03/29/2019 | State Street Bank & Trust Co. | CAD | 5,425,821 | USD | 4,124,718 | (1,257 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
03/29/2019 | State Street Bank & Trust Co. | CHF | 50,919,832 | USD | 51,050,524 | (89,722 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
03/29/2019 | State Street Bank & Trust Co. | EUR | 25,724,281 | USD | 29,292,444 | (29,338 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
03/29/2019 | State Street Bank & Trust Co. | GBP | 100,173,917 | USD | 131,202,729 | (1,834,670 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
Subtotal–Depreciation | (5,608,332 | ) | ||||||||||||||||||||||
| ||||||||||||||||||||||||
Total Forward Foreign Currency Contracts | $ | (486,882 | ) | |||||||||||||||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Growth and Income Fund
Abbreviations:
CAD –Canadian Dollar
CHF –Swiss Franc
EUR –Euro
GBP –British Pound Sterling
USD –U.S. Dollar
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Growth and Income Fund
Statement of Assets and Liabilities
February 28, 2019
(Unaudited)
Assets: | ||||
Investments in securities, at value | $ | 6,933,726,513 | ||
| ||||
Investments in affiliated money market funds, at value (Cost $255,779,115) | 255,786,658 | |||
| ||||
Other investments: | ||||
Unrealized appreciation on forward foreign currency contracts outstanding | 5,121,450 | |||
| ||||
Foreign currencies, at value (Cost $785) | 781 | |||
| ||||
Receivable for: | ||||
Investments sold | 44,397,988 | |||
| ||||
Fund shares sold | 4,028,811 | |||
| ||||
Dividends | 15,950,656 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 691,548 | |||
| ||||
Other assets | 89,280 | |||
| ||||
Total assets | 7,259,793,685 | |||
| ||||
Liabilities: | ||||
Other investments: | ||||
Unrealized depreciation on forward foreign currency contracts outstanding | 5,608,332 | |||
| ||||
Payable for: | ||||
Fund shares reacquired | 8,245,399 | |||
| ||||
Accrued fees to affiliates | 3,010,280 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 17,124 | |||
| ||||
Accrued other operating expenses | 358,972 | |||
| ||||
Trustee deferred compensation and retirement plans | 791,075 | |||
| ||||
Total liabilities | 18,031,182 | |||
| ||||
Net assets applicable to shares outstanding | $ | 7,241,762,503 | ||
| ||||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 5,552,980,721 | ||
| ||||
Distributable earnings | 1,688,781,782 | |||
| ||||
$ | 7,241,762,503 | |||
|
Net Assets: | ||||
Class A | $ | 3,615,217,103 | ||
| ||||
Class C | $ | 87,984,848 | ||
| ||||
Class R | $ | 100,474,814 | ||
| ||||
Class Y | $ | 1,091,651,373 | ||
| ||||
Class R5 | $ | 822,749,871 | ||
| ||||
Class R6 | $ | 1,523,684,494 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 156,467,901 | |||
| ||||
Class C | 3,861,777 | |||
| ||||
Class R | 4,344,973 | |||
| ||||
Class Y | 47,198,038 | |||
| ||||
Class R5 | 35,531,526 | |||
| ||||
Class R6 | 65,784,872 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 23.11 | ||
| ||||
Maximum offering price per share (Net asset value of $23.11 ÷ 94.50%) | $ | 24.46 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 22.78 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 23.12 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 23.13 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 23.16 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 23.16 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Growth and Income Fund
Statement of Operations
For the six months ended February 28, 2019
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $1,509,749) | $ | 92,445,232 | ||
| ||||
Dividends from affiliated money market funds | 2,012,052 | |||
| ||||
Total investment income | 94,457,284 | |||
| ||||
Expenses: | ||||
Advisory fees | 13,026,551 | |||
| ||||
Administrative services fees | 399,533 | |||
| ||||
Custodian fees | 19,310 | |||
| ||||
Distribution fees: | ||||
Class A | 4,450,398 | |||
| ||||
Class C | 952,925 | |||
| ||||
Class R | 255,583 | |||
| ||||
Transfer agent fees – A, C, R and Y | 4,464,764 | |||
| ||||
Transfer agent fees – R5 | 418,596 | |||
| ||||
Transfer agent fees – R6 | 30,170 | |||
| ||||
Trustees’ and officers’ fees and benefits | 66,053 | |||
| ||||
Registration and filing fees | 94,714 | |||
| ||||
Reports to shareholders | 182,328 | |||
| ||||
Professional services fees | 59,172 | |||
| ||||
Other | 51,694 | |||
| ||||
Total expenses | 24,471,791 | |||
| ||||
Less: Fees waived and expense offset arrangement(s) | (113,035 | ) | ||
| ||||
Net expenses | 24,358,756 | |||
| ||||
Net investment income | 70,098,528 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
| ||||
Investment securities | 274,142,278 | |||
| ||||
Foreign currencies | (877,438 | ) | ||
| ||||
Forward foreign currency contracts | 2,499,287 | |||
| ||||
275,764,127 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | (757,148,455 | ) | ||
| ||||
Foreign currencies | (61,305 | ) | ||
| ||||
Forward foreign currency contracts | 3,221,354 | |||
| ||||
(753,988,406 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (478,224,279 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (408,125,751 | ) | |
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Growth and Income Fund
Statement of Changes in Net Assets
For the six months ended February 28, 2019 and the year ended August 31, 2018
(Unaudited)
February 28, 2019 | August 31, 2018 | |||||||
| ||||||||
Operations: |
| |||||||
Net investment income | $ | 70,098,528 | $ | 130,010,029 | ||||
| ||||||||
Net realized gain | 275,764,127 | 727,729,175 | ||||||
| ||||||||
Change in net unrealized appreciation (depreciation) | (753,988,406 | ) | 77,446,989 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | (408,125,751 | ) | 935,186,193 | |||||
| ||||||||
Distributions to shareholders from distributable earnings(1): |
| |||||||
Class A | (392,491,374 | ) | (432,363,532 | ) | ||||
| ||||||||
Class B | – | (1,466,175 | ) | |||||
| ||||||||
Class C | (23,459,884 | ) | (26,078,358 | ) | ||||
| ||||||||
Class R | (11,081,450 | ) | (12,771,763 | ) | ||||
| ||||||||
Class Y | (127,630,317 | ) | (133,315,379 | ) | ||||
| ||||||||
Class R5 | (92,431,115 | ) | (92,772,524 | ) | ||||
| ||||||||
Class R6 | (169,374,661 | ) | (180,655,314 | ) | ||||
| ||||||||
Total distributions to shareholders from distributable earnings | (816,468,801 | ) | (879,423,045 | ) | ||||
| ||||||||
Share transactions–net: |
| |||||||
Class A | 250,446,251 | (44,106,092 | ) | |||||
| ||||||||
Class B | – | (18,639,866 | ) | |||||
| ||||||||
Class C | (114,067,827 | ) | (10,800,593 | ) | ||||
| ||||||||
Class R | 2,044,448 | (5,141,530 | ) | |||||
| ||||||||
Class Y | 18,696,937 | 106,745,901 | ||||||
| ||||||||
Class R5 | 28,310,926 | 126,551,900 | ||||||
| ||||||||
Class R6 | 102,440,907 | 14,120,000 | ||||||
| ||||||||
Net increase in net assets resulting from share transactions | 287,871,642 | 168,729,720 | ||||||
| ||||||||
Net increase (decrease) in net assets | (936,722,910 | ) | 224,492,868 | |||||
| ||||||||
Net assets: |
| |||||||
Beginning of period | 8,178,485,413 | 7,953,992,545 | ||||||
| ||||||||
End of period | $ | 7,241,762,503 | $ | 8,178,485,413 | ||||
|
(1) | For the year ended August 31, 2018, distributions to shareholders from distributable earnings consisted of distributions from net investment income and distributions from net realized gains. The Securities and Exchange Commission eliminated the requirement to disclose the distribution components separately, except for tax return of capital. For the year ended August 31, 2018, distributions from net investment income were $74,100,240, $177,081, $2,842,803, $1,924,086, $25,569,891, $18,771,654 and $37,369,692 for Class A, Class B, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively, and distributions from net realized gains were $358,263,292, $1,289,094, $23,235,555, $10,847,677, $107,745,488, $74,000,870 and $143,285,622 for Class A, Class B, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Growth and Income Fund
February 28, 2019
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco 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 anopen-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is total return through growth of capital and current income.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with afront-end sales charge unless certain waiver criteria are met. 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, Class R5 and Class R6 shares are sold at net asset value.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946,Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations- Securities, including restricted securities, are valued according to the following policy. |
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such asinstitution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in theover-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments inopen-end andclosed-end registered investment companies that do not trade on an exchange are valued at theend-of-day net asset value per share. Investments inopen-end andclosed-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) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
12 Invesco Growth and Income Fund
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 (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on theex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
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 net investment income, if any, are declared and paid quarterly and are recorded on theex-dividend date. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on theex-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 of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses –Fees provided for under the Rule12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets.Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
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 theperiod-end date and before the date the financial statements are released to print. |
H. | Industry Focus- To the extent that the Fund invests a greater amount of its assets in securities of issuers in the banking and financial services industries, the Fund’s performance will depend to a greater extent on the overall condition of those industries. The value of these securities can be sensitive to changes in government regulation, interest rates and economic downturns in the U.S. and abroad. |
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 the 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. |
13 Invesco Growth and Income Fund
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. | Forward Foreign Currency Contracts- The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount(non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the dailymark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||||
| ||||||
First $150 million | 0.50% | |||||
| ||||||
Next $100 million | 0.45% | |||||
| ||||||
Next $100 million | 0.40% | |||||
| ||||||
Over $350 million | 0.35% | |||||
|
For the six months ended February 28, 2019, the effective advisory fees incurred by the Fund was 0.36%.
Under the terms of a mastersub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “AffiliatedSub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such AffiliatedSub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such AffiliatedSub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2019, 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 C, Class R, Class Y, Class R5 and Class R6 shares to 2.00%, 2.75%, 2.25%, 1.75%, 1.75% and 1.75%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause 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 ornon-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2019. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limit.
Further, the Adviser has contractually agreed, through at least June 30, 2020, 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 28, 2019, the Adviser waived advisory fees of $103,879.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Trust has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Trust. For the six months ended February 28, 2019, expenses incurred under this agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into asub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Trust.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Trust has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Trust 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 orsub-accounting services are charged back to the Trust, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer agent fees.
Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A, 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
14 Invesco Growth and Income Fund
average daily net assets, up to 1.00% of Class C average daily net assets and up to 0.50% of Class R average daily net assets. The fees are accrued daily and paid monthly.
With respect to 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 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 28, 2019, expenses incurred under these agreements are shown in the Statement of Operations asDistribution 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 28, 2019, IDI advised the Fund that IDI retained $160,389 infront-end sales commissions from the sale of Class A shares and $3,783 and $1,830 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the six months ended February 28, 2019, the Fund incurred $25,745 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
Generally Accepted Accounting Principles (“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 28, 2019. 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.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments in Securities | ||||||||||||||||
| ||||||||||||||||
Common Stocks & Other Equity Interests | $ | 6,933,726,513 | $ | – | $– | $ | 6,933,726,513 | |||||||||
| ||||||||||||||||
Money Market Funds | 255,786,658 | – | – | 255,786,658 | ||||||||||||
| ||||||||||||||||
Total Investments in Securities | 7,189,513,171 | – | – | 7,189,513,171 | ||||||||||||
| ||||||||||||||||
Other Investments - Assets* | ||||||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | 5,121,450 | – | 5,121,450 | ||||||||||||
| ||||||||||||||||
Other Investments - Liabilities* | ||||||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | (5,608,332 | ) | – | (5,608,332 | ) | ||||||||||
| ||||||||||||||||
Total Other Investments | – | (486,882 | ) | – | (486,882 | ) | ||||||||||
| ||||||||||||||||
Total Investments | $ | 7,189,513,171 | $ | (486,882 | ) | $– | $ | 7,189,026,289 | ||||||||
|
* | Unrealized appreciation (depreciation). |
NOTE 4–Derivative Investments
The Trust may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a trust may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions andclose-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Trust does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
15 Invesco Growth and Income Fund
Value of Derivative Investments atPeriod-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of February 28, 2019:
Value | ||||
Derivative Assets | Currency Risk | |||
| ||||
Unrealized appreciation on forward foreign currency contracts outstanding | $5,121,450 | |||
| ||||
Derivatives not subject to master netting agreements | - | |||
| ||||
Total Derivative Assets subject to master netting agreements | $5,121,450 | |||
|
Value | ||||
Derivative Liabilities | Currency Risk | |||
| ||||
Unrealized depreciation on forward foreign currency contracts outstanding | $ | (5,608,332 | ) | |
| ||||
Derivatives not subject to master netting agreements | - | |||
| ||||
Total Derivative Liabilities subject to master netting agreements | $ | (5,608,332 | ) | |
|
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of February 28, 2019.
Financial Derivative Assets | Financial Derivative Liabilities | Collateral (Received)/Pledged | ||||||||||||||
Forward Foreign |
Forward Foreign |
Net Value of | Net | |||||||||||||
Counterparty | Non-Cash | Cash | ||||||||||||||
| ||||||||||||||||
Bank of New York Mellon (The) | $2,668,130 | $(2,816,364) | $(148,234 | ) | $- | $- | $(148,234 | ) | ||||||||
| ||||||||||||||||
State Street Bank & Trust Co. | 2,453,320 | (2,791,968) | (338,648 | ) | - | - | (338,648 | ) | ||||||||
| ||||||||||||||||
Total | $5,121,450 | $(5,608,332) | $(486,882 | ) | $- | $- | $(486,882 | ) | ||||||||
|
Effect of Derivative Investments for the six months ended February 28, 2019
The table below summarizes the gains on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain on Statement of Operations | ||||
Currency Risk | ||||
| ||||
Realized Gain: | ||||
Forward foreign currency contracts | $2,499,287 | |||
| ||||
Change in Net Unrealized Appreciation: | ||||
Forward foreign currency contracts | 3,221,354 | |||
| ||||
Total | $5,720,641 | |||
|
The table below summarizes the average notional value of forward foreign currency contracts held during the period.
Forward Foreign Currency Contracts | ||||
| ||||
Average notional value | $812,775,105 | |||
|
NOTE 5–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $9,156.
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, andTrustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former
16 Invesco Growth and Income Fund
Trustees who also participate in a retirement plan and receive benefits under such plan.Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any atperiod-end, are shown in the Statement of Assets and Liabilities under the payable captionAmount 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 GAAP. 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 fiscalyear-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. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of August 31, 2018.
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2019 was $839,759,951 and $1,348,326,466, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reportingperiod-end.
Unrealized Appreciation (Depreciation) of Investments on a TaxBasis | ||||
| ||||
Aggregate unrealized appreciation of investments | $1,824,026,569 | |||
| ||||
Aggregate unrealized (depreciation) of investments | (284,476,361 | ) | ||
| ||||
Net unrealized appreciation of investments | $1,539,550,208 | |||
|
Cost of investments for tax purposes is $5,649,476,081.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended February 28, 2019(a) | Year ended August 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 11,832,316 | $ | 272,938,845 | 12,142,515 | $ | 333,985,416 | ||||||||||
| ||||||||||||||||
Class B(b) | – | – | 1,748 | 49,140 | ||||||||||||
| ||||||||||||||||
Class C | 430,367 | 9,795,218 | 837,159 | 22,842,780 | ||||||||||||
| ||||||||||||||||
Class R | 289,626 | 6,851,693 | 560,415 | 15,432,322 | ||||||||||||
| ||||||||||||||||
Class Y | 3,674,205 | 87,939,997 | 9,734,057 | 267,911,219 | ||||||||||||
| ||||||||||||||||
Class R5 | 2,943,815 | 69,408,253 | 8,217,159 | 225,342,220 | ||||||||||||
| ||||||||||||||||
Class R6 | 6,517,096 | 157,821,480 | 13,411,692 | 370,076,030 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 17,140,916 | 369,199,984 | 15,302,905 | 408,842,647 | ||||||||||||
| ||||||||||||||||
Class B(b) | – | – | 53,025 | 1,404,068 | ||||||||||||
| ||||||||||||||||
Class C | 1,023,683 | 21,688,382 | 918,205 | 24,246,579 | ||||||||||||
| ||||||||||||||||
Class R | 513,967 | 11,074,532 | 476,435 | 12,741,923 | ||||||||||||
| ||||||||||||||||
Class Y | 5,283,765 | 113,984,448 | 4,446,429 | 118,848,666 | ||||||||||||
| ||||||||||||||||
Class R5 | 4,277,032 | 92,426,332 | 3,460,373 | 92,593,352 | ||||||||||||
| ||||||||||||||||
Class R6 | 7,715,259 | 166,762,540 | 6,643,791 | 177,799,605 | ||||||||||||
|
17 Invesco Growth and Income Fund
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended February 28, 2019(a) | Year ended August 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Conversion of Class B shares to Class A shares:(c) | ||||||||||||||||
Class A | – | – | 430,282 | 12,508,305 | ||||||||||||
| ||||||||||||||||
Class B | – | – | (435,199 | ) | (12,508,305 | ) | ||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (16,291,466 | ) | (391,692,578 | ) | (29,000,432 | ) | (799,442,460 | ) | ||||||||
| ||||||||||||||||
Class B(b) | – | – | (270,122 | ) | (7,584,769 | ) | ||||||||||
| ||||||||||||||||
Class C | (6,563,338 | ) | (145,551,427 | ) | (2,133,616 | ) | (57,889,952 | ) | ||||||||
| ||||||||||||||||
Class R | (650,257 | ) | (15,881,777 | ) | (1,211,242 | ) | (33,315,775 | ) | ||||||||
| ||||||||||||||||
Class Y | (7,750,970 | ) | (183,227,508 | ) | (10,174,298 | ) | (280,013,984 | ) | ||||||||
| ||||||||||||||||
Class R5 | (5,513,530 | ) | (133,523,659 | ) | (6,965,081 | ) | (191,383,672 | ) | ||||||||
| ||||||||||||||||
Class R6 | (8,902,723 | ) | (222,143,113 | ) | (19,234,756 | ) | (533,755,635 | ) | ||||||||
| ||||||||||||||||
Net increase in share activity | 15,969,763 | $ 287,871,642 | 7,211,444 | $ 168,729,720 | ||||||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 29% 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) | Class B shares activity for the period September 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income(a) | Net gains realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized | Total distributions | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of net assets with fee waivers and/or expenses absorbed | Ratio of to average net absorbed | Ratio of net to average | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $27.50 | $0.00 | $(1.56) | $(1.56) | $(0.23 | ) | $(2.60) | $(2.83 | ) | $23.11 | (4.90) | % | $3,615,217 | 0.81 | %(d) | 0.81 | %(d) | 1.76 | %(d) | 12 | % | |||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 27.42 | 0.40 | 2.76 | 3.16 | (0.52) | (2.56) | (3.08) | 27.50 | 11.96 | 3,954,641 | 0.80 | 0.80 | 1.44 | 29 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 25.12 | 0.53(e) | 3.64 | 4.17 | (0.42) | (1.45) | (1.87) | 27.42 | 16.90 | 3,972,916 | 0.82 | 0.82 | 1.96(e) | 16 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 25.44 | 0.38 | 1.44 | 1.82 | (0.42) | (1.72) | (2.14) | 25.12 | 7.93 | 4,058,588 | 0.83 | 0.83 | 1.59 | 18 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 29.30 | 0.35 | (1.09) | (0.74) | (0.54) | (2.58) | (3.12) | 25.44 | (2.61) | 4,450,596 | 0.84 | 0.84 | 1.29 | 23 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 24.92 | 0.55 | (e) | 4.78 | 5.33 | (0.33 | ) | (0.62 | ) | (0.95 | ) | 29.30 | 21.84 | 5,302,375 | 0.83 | 0.84 | 2.03 | (e) | 31 | |||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 27.15 | 0.00 | (1.64 | ) | (1.64 | ) | (0.13 | ) | (2.60 | ) | (2.73 | ) | 22.78 | (5.27 | ) | 87,985 | 1.53 | (d) | 1.53 | (d) | 1.04 | (d) | 12 | |||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 27.09 | 0.19 | 2.74 | 2.93 | (0.31 | ) | (2.56 | ) | (2.87 | ) | 27.15 | 11.17 | (f) | 243,564 | 1.53 | (f) | 1.53 | (f) | 0.71 | (f) | 29 | |||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 24.84 | 0.32 | (e) | 3.60 | 3.92 | (0.22 | ) | (1.45 | ) | (1.67 | ) | 27.09 | 16.00 | 253,253 | 1.57 | 1.57 | 1.21 | (e) | 16 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 25.17 | 0.20 | 1.43 | 1.63 | (0.24 | ) | (1.72 | ) | (1.96 | ) | 24.84 | 7.14 | (f) | 290,579 | 1.55 | (f) | 1.55 | (f) | 0.87 | (f) | 18 | |||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 29.01 | 0.15 | (1.08 | ) | (0.93 | ) | (0.33 | ) | (2.58 | ) | (2.91 | ) | 25.17 | (3.33 | ) | 309,526 | 1.59 | 1.59 | 0.54 | 23 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 24.68 | 0.34 | (e) | 4.73 | 5.07 | (0.12 | ) | (0.62 | ) | (0.74 | ) | 29.01 | 20.94 | 334,902 | 1.58 | 1.59 | 1.28 | (e) | 31 | |||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 27.52 | 0.00 | (1.61 | ) | (1.61 | ) | (0.19 | ) | (2.60 | ) | (2.79 | ) | 23.12 | (5.06 | ) | 100,475 | 1.06 | (d) | 1.06 | (d) | 1.51 | (d) | 12 | |||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 27.43 | 0.33 | 2.77 | 3.10 | (0.45 | ) | (2.56 | ) | (3.01 | ) | 27.52 | 11.71 | 115,360 | 1.05 | 1.05 | 1.19 | 29 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 25.14 | 0.46 | (e) | 3.64 | 4.10 | (0.36 | ) | (1.45 | ) | (1.81 | ) | 27.43 | 16.55 | 119,766 | 1.07 | 1.07 | 1.71 | (e) | 16 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 25.45 | 0.32 | 1.45 | 1.77 | (0.36 | ) | (1.72 | ) | (2.08 | ) | 25.14 | 7.69 | 116,837 | 1.08 | 1.08 | 1.34 | 18 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 29.31 | 0.29 | (1.10 | ) | (0.81 | ) | (0.47 | ) | (2.58 | ) | (3.05 | ) | 25.45 | (2.86 | ) | 139,084 | 1.09 | 1.09 | 1.04 | 23 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 24.93 | 0.48 | (e) | 4.78 | 5.26 | (0.26 | ) | (0.62 | ) | (0.88 | ) | 29.31 | 21.53 | 181,301 | 1.08 | 1.09 | 1.78 | (e) | 31 | |||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 27.53 | 0.00 | (1.54 | ) | (1.54 | ) | (0.26 | ) | (2.60 | ) | (2.86 | ) | 23.13 | (4.81 | ) | 1,091,651 | 0.56 | (d) | 0.56 | (d) | 2.01 | (d) | 12 | |||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 27.44 | 0.47 | 2.77 | 3.24 | (0.59 | ) | (2.56 | ) | (3.15 | ) | 27.53 | 12.27 | 1,266,205 | 0.55 | 0.55 | 1.69 | 29 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 25.15 | 0.59 | (e) | 3.64 | 4.23 | (0.49 | ) | (1.45 | ) | (1.94 | ) | 27.44 | 17.13 | 1,152,199 | 0.57 | 0.57 | 2.21 | (e) | 16 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 25.46 | 0.44 | 1.46 | 1.90 | (0.49 | ) | (1.72 | ) | (2.21 | ) | 25.15 | 8.24 | 1,851,513 | 0.58 | 0.58 | 1.84 | 18 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 29.33 | 0.42 | (1.10 | ) | (0.68 | ) | (0.61 | ) | (2.58 | ) | (3.19 | ) | 25.46 | (2.39 | ) | 1,886,928 | 0.59 | 0.59 | 1.54 | 23 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 24.94 | 0.62 | (e) | 4.78 | 5.40 | (0.39 | ) | (0.62 | ) | (1.01 | ) | 29.33 | 22.17 | 2,186,472 | 0.58 | 0.59 | 2.28 | (e) | 31 | |||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 27.56 | 0.00 | (1.53 | ) | (1.53 | ) | (0.27 | ) | (2.60 | ) | (2.87 | ) | 23.16 | (4.77 | ) | 822,750 | 0.48 | (d) | 0.48 | (d) | 2.09 | (d) | 12 | |||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 27.47 | 0.49 | 2.77 | 3.26 | (0.61 | ) | (2.56 | ) | (3.17 | ) | 27.56 | 12.35 | 932,196 | 0.48 | 0.48 | 1.76 | 29 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 25.17 | 0.61 | (e) | 3.65 | 4.26 | (0.51 | ) | (1.45 | ) | (1.96 | ) | 27.47 | 17.26 | 799,681 | 0.49 | 0.49 | 2.29 | (e) | 16 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 25.49 | 0.46 | 1.45 | 1.91 | (0.51 | ) | (1.72 | ) | (2.23 | ) | 25.17 | 8.31 | 765,516 | 0.48 | 0.48 | 1.94 | 18 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 29.36 | 0.45 | (1.10 | ) | (0.65 | ) | (0.64 | ) | (2.58 | ) | (3.22 | ) | 25.49 | (2.29 | ) | 738,797 | 0.48 | 0.48 | 1.65 | 23 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 24.97 | 0.65 | (e) | 4.78 | 5.43 | (0.42 | ) | (0.62 | ) | (1.04 | ) | 29.36 | 22.27 | 880,275 | 0.47 | 0.48 | 2.39 | (e) | 31 |
18 Invesco Growth and Income Fund
Net asset value, beginning of period | Net income(a) | Net gains on securities | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return (b) | Net assets, end of period | Ratio of expenses to average net assets with fee waivers and/ or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net to average | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $ | 27.57 | $ | 0.00 | $(1.53 | ) | $(1.53) | $(0.28 | ) | $(2.60 | ) | $(2.88 | ) | $ | 23.16 | (4.75 | )% | $ | 1,523,684 | 0.38 | %(d) | 0.38 | %(d) | 2.19 | %(d) | 12 | % | |||||||||||||||||||||||||||||
Year ended 08/31/18 | 27.48 | 0.51 | 2.77 | 3.28 | (0.63 | ) | (2.56 | ) | (3.19 | ) | 27.57 | 12.46 | 1,666,520 | 0.38 | 0.38 | 1.86 | 29 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 25.18 | 0.64 | (e) | 3.65 | 4.29 | (0.54 | ) | (1.45 | ) | (1.99 | ) | 27.48 | 17.36 | 1,638,500 | 0.39 | 0.39 | 2.39 | (e) | 16 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 25.49 | 0.49 | 1.46 | 1.95 | (0.54 | ) | (1.72 | ) | (2.26 | ) | 25.18 | 8.46 | 680,404 | 0.38 | 0.38 | 2.04 | 18 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 29.36 | 0.48 | (1.10 | ) | (0.62 | ) | (0.67 | ) | (2.58 | ) | (3.25 | ) | 25.49 | (2.19 | ) | 720,155 | 0.38 | 0.38 | 1.75 | 23 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 24.97 | 0.68 | (e) | 4.78 | 5.46 | (0.45 | ) | (0.62 | ) | (1.07 | ) | 29.36 | 22.38 | 647,350 | 0.38 | 0.39 | 2.48 | (e) | 31 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $3,592,698, $196,620, $103,080, $1,141,228, $843,666 and $1,520,997 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
(e) | Net investment income per share and the ratio of net investment income to average net assets includes significant dividends received during the year ended August 31, 2017. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.40 and 1.47%, $0.19 and 0.72%, $0.33 and 1.22%, $0.46 and 1.72%, $0.48 and 1.80% and $0.51 and 1.90% for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. Net investment income per share and the ratio of net investment income to average net assets includes significant dividends received during the year ended August 31, 2014. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.34 and 1.24%, $0.13 and 0.49%, $0.27 and 0.99%, $0.41 and 1.49%, $0.44 and 1.60% and $0.47 and 1.69% for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
(f) | The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual12b-1 fees of 0.98% for the years ended August 31, 2018 and 2016, respectively. |
19 Invesco 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, 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, 2018 through February 28, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Beginning | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized | |||||||||
Ending Account Value (02/28/19)1 | Expenses Paid During Period2 | Ending Account Value (02/28/19) | Expenses Paid During Period2 | |||||||||
Class A | $1,000.00 | $951.00 | $3.92 | $1,020.78 | $4.06 | 0.81% | ||||||
Class C | 1,000.00 | 947.30 | 7.39 | 1,017.21 | 7.65 | 1.53 | ||||||
Class R | 1,000.00 | 949.40 | 5.12 | 1,019.54 | 5.31 | 1.06 | ||||||
Class Y | 1,000.00 | 951.90 | 2.71 | 1,022.02 | 2.81 | 0.56 | ||||||
Class R5 | 1,000.00 | 952.30 | 2.32 | 1,022.41 | 2.41 | 0.48 | ||||||
Class R6 | 1,000.00 | 952.50 | 1.84 | 1,022.91 | 1.91 | 0.38 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2018 through February 28, 2019, 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 181/365 to reflect the most recent fiscal half year. |
20 Invesco Growth and Income Fund
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Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on FormN-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s FormsN-Q (or any successor Form) on the SEC website at sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov. Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd. | ![]() |
SEC file numbers:811-09913 and333-36074 Invesco Distributors, Inc. VK-GRI-SAR-1 04222019 0802
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| Semiannual Report to Shareholders
| February 28, 2019 | ||
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Invesco Low Volatility Equity Yield Fund | ||||
Nasdaq: | ||||
A: SCAUX∎ C: SCCUX∎ R: SCRUX∎ Y: SCAYX∎ Investor: SCNUX∎ R5: SCIUX∎ R6: SLESX |
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2 | Fund Performance | |||||
4 | Letters to Shareholders | |||||
5 | Schedule of Investments | |||||
8 | Financial Statements | |||||
11 | Notes to Financial Statements | |||||
17 | Financial Highlights | |||||
18 | Fund Expenses |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800 959 4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most currentmonth-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, 8/31/18 to 2/28/19, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) orfront-end sales charges, which would have reduced performance. |
| |||
Class A Shares | -7.78% | |||
Class C Shares | -8.20 | |||
Class R Shares | -7.94 | |||
Class Y Shares | -7.71 | |||
Investor Class Shares | -7.84 | |||
Class R5 Shares | -7.70 | |||
Class R6 Shares | -7.61 | |||
S&P 500 Indexq(Broad Market Index) | - 3.04 | |||
Russell 1000 Index∎(Style-Specific Index) | - 3.07 | |||
Lipper Equity Income Funds Index¨(Peer Group Index) | - 1.53 | |||
Source(s):qFactSet Research Systems Inc.;∎ RIMES Technologies Corp.;¨Lipper Inc. | ||||
TheS&P 500®Indexis an unmanaged index considered representative of the US stock market. | ||||
TheRussell 1000®Indexis an unmanaged index considered representative oflarge-cap stocks. The Russell 1000 Index is a trademark/service mark of the Frank Russell Co. Russell®is a trademark of the Frank Russell Co. |
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TheLipper Equity Income Funds Indexis an unmanaged index considered representative of equity income funds tracked by Lipper. | ||||
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes. |
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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.
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For more information about your Fund Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us.Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
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2 | Invesco Low Volatility Equity Yield Fund |
Average Annual Total Returns |
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As of 2/28/19, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (3/31/06) | 4.49 | % | ||
10 Years | 11.39 | |||
5 Years | 3.60 | |||
1 Year | -4.46 | |||
Class C Shares* | ||||
Inception (3/31/06) | 4.34 | % | ||
10 Years | 11.12 | |||
5 Years | 3.99 | |||
1 Year | -0.71 | |||
Class R Shares | ||||
Inception (3/31/06) | 4.69 | % | ||
10 Years | 11.73 | |||
5 Years | 4.52 | |||
1 Year | 0.78 | |||
Class Y Shares | ||||
Inception (10/3/08) | 8.16 | % | ||
10 Years | 12.27 | |||
5 Years | 5.04 | |||
1 Year | 1.38 | |||
Investor Class Shares | ||||
Inception (4/25/08) | 5.03 | % | ||
10 Years | 11.98 | |||
5 Years | 4.76 | |||
1 Year | 1.03 | |||
Class R5 Shares | ||||
Inception (3/31/06) | 5.30 | % | ||
10 Years | 12.39 | |||
5 Years | 5.22 | |||
1 Year | 1.45 | |||
Class R6 Shares | ||||
10 Years | 12.09 | % | ||
5 Years | 4.95 | |||
1 Year | 1.57 | |||
* Effective January 26, 2019, Class C share performance includes the conversion to A shares after 10 years. |
|
Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares and includes the12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recentmonth-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum
Average Annual Total Returns |
| |||
As of 12/31/18, the most recent calendar quarter end, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (3/31/06) | 3.76 | % | ||
10 Years | 8.02 | |||
5 Years | 1.80 | |||
1 Year | -14.30 | |||
Class C Shares | ||||
Inception (3/31/06) | 3.44 | % | ||
10 Years | 7.80 | |||
5 Years | 2.19 | |||
1 Year | -10.83 | |||
Class R Shares | ||||
Inception (3/31/06) | 3.97 | % | ||
10 Years | 8.36 | |||
5 Years | 2.69 | |||
1 Year | -9.55 | |||
Class Y Shares | ||||
Inception (10/3/08) | 7.28 | % | ||
10 Years | 8.91 | |||
5 Years | 3.21 | |||
1 Year | -9.09 | |||
Investor Class Shares | ||||
Inception (4/25/08) | 4.17 | % | ||
10 Years | 8.63 | |||
5 Years | 2.95 | |||
1 Year | -9.33 | |||
Class R5 Shares | ||||
Inception (3/31/06) | 4.58 | % | ||
10 Years | 9.01 | |||
5 Years | 3.38 | |||
1 Year | -8.94 | |||
Class R6 Shares | ||||
10 Years | 8.71 | % | ||
5 Years | 3.10 | |||
1 Year | -8.91 |
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, Investor Class, Class R5 and Class R6 shares was 1.21%, 1.96%, 1.46%, 0.96%, 1.21%, 0.79% and 0.75%, 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 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, Investor Class, Class R5 and Class R6 shares do not have afront-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 | Invesco Low Volatility Equity Yield Fund |
Letters to Shareholders
| ||
Bruce Crockett | Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time; monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory andsub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper, Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. | ||
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. | ||
Sincerely, | ||
![]() | ||
Bruce L. Crockett Independent Chair | ||
Invesco Funds Board of Trustees |
Andrew Schlossberg |
Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward. Our website,invesco.com/us, offers a wide range of market insights and investment perspectives. | |
On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log in” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246. All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. | ||
Sincerely, | ||
![]() | ||
Andrew Schlossberg | ||
Head of the Americas, | ||
Senior Managing Director, Invesco Ltd. |
4 | Invesco Low Volatility Equity Yield Fund |
Schedule of Investments(a)
February 28, 2019
(Unaudited)
Shares | Value | |||||||
Common Stocks & Other Equity Interests-97.69% |
| |||||||
Agricultural Products-0.58% |
| |||||||
Archer-Daniels-Midland Co. | 32,300 | $ | 1,372,750 | |||||
Airlines-1.71% | ||||||||
United Continental Holdings, Inc.(b) | 46,200 | 4,056,822 | ||||||
Alternative Carriers-0.44% | ||||||||
CenturyLink, Inc. | 78,700 | 1,038,053 | ||||||
Apparel, Accessories & Luxury Goods-0.22% |
| |||||||
Ralph Lauren Corp. | 4,200 | 525,714 | ||||||
Application Software-1.56% | ||||||||
Citrix Systems, Inc.(b) | 35,000 | 3,692,500 | ||||||
Asset Management & Custody Banks-0.26% |
| |||||||
Waddell & Reed Financial, Inc., Class A | 33,400 | 618,234 | ||||||
Auto Parts & Equipment-0.20% | ||||||||
Garrett Motion Inc. (Switzerland)(b) | 28,300 | 473,742 | ||||||
Automobile Manufacturers-1.47% |
| |||||||
General Motors Co. | 88,300 | 3,486,084 | ||||||
Biotechnology-10.77% | ||||||||
AbbVie, Inc. | 45,100 | 3,573,724 | ||||||
Alexion Pharmaceuticals, Inc.(b) | 14,700 | 1,989,351 | ||||||
Amgen, Inc. | 21,750 | 4,134,240 | ||||||
Biogen, Inc.(b) | 13,100 | 4,296,931 | ||||||
Gilead Sciences, Inc. | 60,000 | 3,901,200 | ||||||
Regeneron Pharmaceuticals, Inc.(b) | 9,180 | 3,954,193 | ||||||
United Therapeutics Corp.(b) | 29,400 | 3,712,926 | ||||||
25,562,565 | ||||||||
Broadcasting-1.13% | ||||||||
AMC Networks Inc., Class A(b) | 30,900 | 2,030,439 | ||||||
TEGNA Inc. | 49,800 | 655,866 | ||||||
2,686,305 | ||||||||
Building Products-0.18% |
| |||||||
Resideo Technologies Inc.(b) | 16,300 | 418,910 | ||||||
Coal & Consumable Fuels-1.36% |
| |||||||
Peabody Energy Corp. | 104,300 | 3,217,655 | ||||||
Commodity Chemicals-2.47% |
| |||||||
Lyondell Chemical Co., Class A | 30,900 | 2,642,568 | ||||||
Methanex Corp. (Canada) | 57,000 | 3,214,800 | ||||||
5,857,368 | ||||||||
Construction Machinery & Heavy Trucks-1.67% |
| |||||||
Allison Transmission Holdings, Inc. | 79,600 | 3,956,120 |
Shares | Value | |||||||
Consumer Electronics-1.45% |
| |||||||
Garmin Ltd. | 40,900 | $ | 3,434,373 | |||||
Consumer Finance-2.16% |
| |||||||
Navient Corp. | 228,400 | 2,791,048 | ||||||
Santander Consumer USA Holdings, Inc. | 114,200 | 2,345,668 | ||||||
5,136,716 | ||||||||
Data Processing & Outsourced |
| |||||||
Automatic Data Processing, Inc. | 24,150 | 3,695,675 | ||||||
Department Stores-3.05% | ||||||||
Kohl’s Corp. | 59,800 | 4,038,294 | ||||||
Macy’s, Inc. | 128,900 | 3,195,431 | ||||||
7,233,725 | ||||||||
Diversified Banks-3.91% | ||||||||
Bank of Montreal (Canada) | 16,200 | 1,262,628 | ||||||
Canadian Imperial Bank of Commerce (Canada) | 47,200 | 4,004,448 | ||||||
Toronto-Dominion Bank (The) (Canada) | 70,000 | 4,016,600 | ||||||
9,283,676 | ||||||||
Drug Retail-1.27% | ||||||||
Walgreens Boots Alliance, Inc. | 42,300 | 3,011,337 | ||||||
Electric Utilities-6.59% | ||||||||
Entergy Corp. | 51,000 | 4,759,830 | ||||||
Exelon Corp. | 93,300 | 4,533,447 | ||||||
FirstEnergy Corp. | 111,700 | 4,551,775 | ||||||
Hawaiian Electric Industries Inc. | 8,300 | 317,724 | ||||||
OGE Energy Corp. | 7,900 | 335,908 | ||||||
Southern Co. (The) | 23,200 | 1,152,808 | ||||||
15,651,492 | ||||||||
Electronic Equipment & Instruments-0.57% |
| |||||||
Zebra Technologies Corp., Class A(b) | 6,750 | 1,353,443 | ||||||
Fertilizers & Agricultural Chemicals-1.64% |
| |||||||
CF Industries Holdings, Inc. | 92,000 | 3,882,400 | ||||||
Footwear-1.98% | ||||||||
Deckers Outdoor Corp.(b) | 31,800 | 4,704,810 | ||||||
Forest Products-0.11% | ||||||||
Norbord Inc. (Canada) | 10,500 | 271,425 | ||||||
Gas Utilities-0.46% | ||||||||
UGI Corp. | 20,100 | 1,103,490 | ||||||
Health Care Facilities-3.73% | ||||||||
Encompass Health Corp. | 50,000 | 3,157,000 | ||||||
HCA Healthcare, Inc. | 29,500 | 4,101,680 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Low Volatility Equity Yield Fund |
Shares | Value | |||||||
Health Care Facilities-(continued) |
| |||||||
Tenet Healthcare Corp.(b) | 55,400 | $ | 1,583,332 | |||||
8,842,012 | ||||||||
Health Care REITs-2.34% | ||||||||
Medical Properties Trust, Inc. | 45,400 | 827,642 | ||||||
National Health Investors, Inc. | 24,600 | 1,919,538 | ||||||
Omega Healthcare Investors, Inc. | 78,100 | 2,803,790 | ||||||
5,550,970 | ||||||||
Health Care Supplies-0.31% |
| |||||||
Haemonetics Corp.(b) | 8,500 | 738,395 | ||||||
Hotel & Resort REITs-1.00% |
| |||||||
Hospitality Properties Trust | 43,000 | 1,164,010 | ||||||
Xenia Hotels & Resorts, Inc. | 61,900 | 1,208,907 | ||||||
2,372,917 | ||||||||
Hotels, Resorts & Cruise Lines-3.01% |
| |||||||
Extended Stay America, Inc.(c) | 192,100 | 3,503,904 | ||||||
Hyatt Hotels Corp., Class A | 50,000 | 3,638,500 | ||||||
7,142,404 | ||||||||
Household Appliances-0.61% |
| |||||||
Helen of Troy Ltd.(b) | 12,900 | 1,446,219 | ||||||
Household Products-2.33% |
| |||||||
Church & Dwight Co., Inc. | 30,500 | 2,006,900 | ||||||
Procter & Gamble Co. (The) | 35,700 | 3,518,235 | ||||||
5,525,135 | ||||||||
Industrial REITs-0.63% | ||||||||
EastGroup Properties, Inc. | 14,200 | 1,500,372 | ||||||
Internet & Direct Marketing Retail-0.29% |
| |||||||
Liberty Expedia Holdings, Inc., | 15,600 | 691,080 | ||||||
IT Consulting & Other Services-1.66% |
| |||||||
Booz Allen Hamilton Holding Corp. | 66,400 | 3,509,904 | ||||||
CACI International, Inc., Class A(b) | 2,300 | 419,198 | ||||||
3,929,102 | ||||||||
Life & Health Insurance-0.42% |
| |||||||
Athene Holding Ltd.(b) | 22,600 | 1,006,830 | ||||||
Mortgage REITs-0.87% | ||||||||
AGNC Investment Corp. | 18,800 | 331,820 | ||||||
Chimera Investment Corp. | 34,000 | 628,660 | ||||||
Granite Point Mortgage Trust Inc. | 9,800 | 186,396 | ||||||
MFA Financial, Inc. | 74,600 | 542,342 | ||||||
Starwood Property Trust, Inc. | 16,500 | 370,095 | ||||||
2,059,313 | ||||||||
Oil & Gas Exploration & Production-1.83% |
| |||||||
ConocoPhillips | 64,000 | 4,342,400 | ||||||
Oil & Gas Refining & Marketing-0.32% |
| |||||||
HollyFrontier Corp. | 14,700 | 752,640 |
Shares | Value | |||||||
Packaged Foods & Meats-1.12% |
| |||||||
TreeHouse Foods, Inc.(b) | 43,800 | $ | 2,653,404 | |||||
Paper Products-1.40% | ||||||||
Domtar Corp. | 65,200 | 3,319,332 | ||||||
Personal Products-1.62% |
| |||||||
Herbalife Nutrition Ltd.(b) | 68,600 | 3,848,460 | ||||||
Pharmaceuticals-5.21% | ||||||||
Allergan PLC | 23,750 | 3,270,612 | ||||||
Eli Lilly and Co. | 28,200 | 3,561,378 | ||||||
Endo International PLC(b) | 179,700 | 1,974,903 | ||||||
Merck & Co., Inc. | 43,700 | 3,552,373 | ||||||
12,359,266 | ||||||||
Regional Banks-1.60% | ||||||||
Popular, Inc., (Puerto Rico) | 67,400 | 3,800,012 | ||||||
Research & Consulting Services-0.16% |
| |||||||
Thomson Reuters Corp. (Canada) | 7,100 | 386,311 | ||||||
Residential REITs-1.38% |
| |||||||
Apartment Investment & Management Co., Class A | 14,643 | 716,482 | ||||||
Equity LifeStyle Properties, Inc. | 5,000 | 543,200 | ||||||
Equity Residential | 27,300 | 2,011,737 | ||||||
3,271,419 | ||||||||
Restaurants-2.37% | ||||||||
Brinker International, Inc. | 43,900 | 2,009,303 | ||||||
Starbucks Corp. | 51,400 | 3,611,364 | ||||||
5,620,667 | ||||||||
Retail REITs-0.55% | ||||||||
Simon Property Group, Inc. | 650 | 117,754 | ||||||
Spirit Realty Capital, Inc. | 30,800 | 1,190,112 | ||||||
1,307,866 | ||||||||
Semiconductors-1.10% | ||||||||
Broadcom, Inc. | 9,500 | 2,615,920 | ||||||
Soft Drinks-1.34% | ||||||||
Coca-Cola Co. (The) | 70,300 | 3,187,402 | ||||||
Specialized Consumer Services-1.45% |
| |||||||
H&R Block, Inc. | 142,700 | 3,446,205 | ||||||
Specialized REITs-5.17% |
| |||||||
CubeSmart | 39,900 | 1,222,536 | ||||||
EPR Properties | 35,300 | 2,593,844 | ||||||
Gaming and Leisure Properties, Inc. | 13,000 | 472,940 | ||||||
Geo Group, Inc. (The) | 43,000 | 976,960 | ||||||
Lamar Advertising Co., Class A | 46,300 | 3,591,491 | ||||||
Life Storage, Inc. | 35,000 | 3,416,000 | ||||||
12,273,771 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Low Volatility Equity Yield Fund |
Shares | Value | |||||||
Specialty Stores–1.66% | ||||||||
Dicks Sporting Goods Inc. | 101,000 | $ | 3,945,060 | |||||
Technology Hardware, Storage & Peripherals–3.44% |
| |||||||
HP, Inc. | 154,800 | 3,054,204 | ||||||
NetApp, Inc. | 57,000 | 3,716,400 | ||||||
Xerox Corp. | 44,800 | 1,384,320 | ||||||
8,154,924 | ||||||||
Total Common Stocks & Other Equity Interests (Cost $221,533,199) |
| 231,815,192 | ||||||
Principal | ||||||||
Amount | ||||||||
U.S. Treasury Securities–0.23% |
| |||||||
U.S. Treasury Bills–0.23% | ||||||||
2.31%, 03/14/2019 (Cost $549,552)(d)(e) | $ | 550,000 | 549,552 |
Shares | Value | |||||||
Money Market Funds–2.03% | ||||||||
Invesco Government & Agency | 1,689,749 | $ | 1,689,749 | |||||
Invesco Liquid Assets Portfolio-Institutional | 1,206,724 | 1,207,086 | ||||||
Invesco Treasury Portfolio-Institutional | 1,931,141 | 1,931,141 | ||||||
Total Money Market Funds |
| 4,827,976 | ||||||
TOTAL INVESTMENTS IN |
| 237,192,720 | ||||||
OTHER ASSETS LESS LIABILITIES–0.05% |
| 115,565 | ||||||
NET ASSETS–100.00% | $ | 237,308,285 |
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) | Each share is comprised of one share of common stock of Extended Stay America, Inc. one share of Class B stock of ESH Hospitality, Inc. |
(d) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1I. |
(e) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
(f) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the7-day SEC standardized yield as of February 28, 2019. |
Portfolio Composition
By sector, based on Net Assets
as of February 28, 2019
Health Care | 20.02 | % | ||
Consumer Discretionary | 17.76 | |||
Real Estate | 11.07 | |||
Information Technology | 9.89 | |||
Financials | 9.22 | |||
Consumer Staples | 8.26 | |||
Utilities | 7.05 | |||
Materials | 5.62 | |||
Industrials | 3.72 | |||
Energy | 3.51 | |||
Communication Services | 1.57 | |||
U.S. Treasury Bills, Money Market Funds, Plus Other Assets Less Liabilities | 2.31 |
Open Futures Contracts | ||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation | |||||||||||
Equity Risk | ||||||||||||||||
E-Mini S&P 500 Index | 36 | March-2019 | $ | 5,012,460 | $ | 336,174 | $336,174 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Low Volatility Equity Yield Fund |
Statement of Assets and Liabilities
February 28, 2019
(Unaudited)
Assets: | ||||
Investments in securities, at value | $ | 232,364,744 | ||
Investments in affiliated money market | 4,827,976 | |||
Foreign currencies, at value (Cost $1,912) | 1,913 | |||
Receivable for: | 75,435 | |||
Dividends | 399,407 | |||
Investment for trustee deferred compensation and retirement plans | 193,332 | |||
Other assets | 59,402 | |||
Total assets | 237,922,209 | |||
Liabilities: | ||||
Other investments: | 19,134 | |||
Payable for: | 187,468 | |||
Accrued fees to affiliates | 115,769 | |||
Accrued trustees’ and officers’ fees and benefits | 3,375 | |||
Accrued other operating expenses | 81,868 | |||
Trustee deferred compensation and retirement plans | 206,310 | |||
Total liabilities | 613,924 | |||
Net assets applicable to shares outstanding | $ | 237,308,285 | ||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 230,288,189 | ||
Distributable earnings | 7,020,096 | |||
$ | 237,308,285 | |||
Net Assets: | ||||
Class A | $ | 169,421,189 | ||
Class C | $ | 5,830,348 | ||
Class R | $ | 343,636 | ||
Class Y | $ | 9,078,909 | ||
Investor Class | $ | 39,778,682 | ||
Class R5 | $ | 11,440,344 | ||
Class R6 | $ | 1,415,177 |
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 15,521,532 | |||
Class C | 544,041 | |||
Class R | 31,632 | |||
Class Y | 827,778 | |||
Investor Class | 3,631,674 | |||
Class R5 | 1,041,551 | |||
Class R6 | 128,891 | |||
Class A: | ||||
Net asset value per share | $ | 10.92 | ||
Maximum offering price per share | $ | 11.56 | ||
Class C: | ||||
Net asset value and offering price per share | $ | 10.72 | ||
Class R: | ||||
Net asset value and offering price per share | $ | 10.86 | ||
Class Y: | ||||
Net asset value and offering price per share | $ | 10.97 | ||
Investor Class: | ||||
Net asset value and offering price per share | $ | 10.95 | ||
Class R5: | ||||
Net asset value and offering price per share | $ | 10.98 | ||
Class R6: | ||||
Net asset value and offering price per share | $ | 10.98 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Low Volatility Equity Yield Fund |
Statement of Operations
For the six months ended February 28, 2019
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $37,339) | $ | 3,275,374 | ||
Dividends from affiliated money market funds | 64,917 | |||
Total investment income | 3,340,291 | |||
Expenses: | ||||
Advisory fees | 723,054 | |||
Administrative services fees | 34,526 | |||
Custodian fees | 3,004 | |||
Distribution fees: | ||||
Class A | 198,354 | |||
Class C | 93,224 | |||
Class R | 722 | |||
Investor Class | 52,075 | |||
Transfer agent fees – A, C, R, Y and Investor | 212,429 | |||
Transfer agent fees – R5 | 1,419 | |||
Transfer agent fees – R6 | 48 | |||
Trustees’ and officers’ fees and benefits | 11,335 | |||
Registration and filing fees | 46,913 | |||
Reports to shareholders | 23,883 | |||
Professional services fees | 21,425 | |||
Other | 13,082 | |||
Total expenses | 1,435,493 | |||
Less: Fees waived and expense offset arrangement(s) | (6,927 | ) | ||
Net expenses | 1,428,566 | |||
Net investment income | 1,911,725 | |||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities | (3,713,715 | ) | ||
Foreign currencies | 243 | |||
Futures contracts | (545,394 | ) | ||
(4,258,866 | ) | |||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | (19,351,419 | ) | ||
Foreign currencies | 88 | |||
Futures contracts | 162,316 | |||
(19,189,015 | ) | |||
Net realized and unrealized gain (loss) | (23,447,881 | ) | ||
Net increase (decrease) in net assets resulting from operations | $ | (21,536,156 | ) |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Low Volatility Equity Yield Fund |
Statement of Changes in Net Assets
For the six months ended February 28, 2019 and the year ended August 31, 2018
(Unaudited)
February 28, 2019 | August 31, 2018 | |||||||
Operations: | ||||||||
Net investment income | $ | 1,911,725 | $ | 3,562,190 | ||||
Net realized gain (loss) | (4,258,866 | ) | 19,087,351 | |||||
Change in net unrealized appreciation (depreciation) | (19,189,015 | ) | 11,482,018 | |||||
Net increase (decrease) in net assets resulting from operations | (21,536,156 | ) | 34,131,559 | |||||
Distributions to shareholders from distributable earnings(1): | ||||||||
Class A | (3,603,549 | ) | (2,847,497 | ) | ||||
Class B | - | (9,092 | ) | |||||
Class C | (417,857 | ) | (229,135 | ) | ||||
Class R | (6,767 | ) | (4,638 | ) | ||||
Class Y | (224,651 | ) | (217,670 | ) | ||||
Investor Class | (971,962 | ) | (775,351 | ) | ||||
Class R5 | (282,800 | ) | (300,493 | ) | ||||
Class R6 | (30,003 | ) | (8,820 | ) | ||||
Total distributions to shareholders from distributable earnings | (5,537,589 | ) | (4,392,696 | ) | ||||
Share transactions-net: | ||||||||
Class A | 11,266,685 | (14,450,270 | ) | |||||
Class B | - | (1,395,465 | ) | |||||
Class C | (15,609,940 | ) | (3,395,533 | ) | ||||
Class R | 101,101 | (136,073 | ) | |||||
Class Y | (313,620 | ) | (3,459,134 | ) | ||||
Investor Class | (2,829,209 | ) | (3,969,471 | ) | ||||
Class R5 | 295,264 | (3,067,653 | ) | |||||
Class R6 | 228,502 | 1,258,032 | ||||||
Net increase (decrease) in net assets resulting from share transactions | (6,861,217 | ) | (28,615,567 | ) | ||||
Net increase (decrease) in net assets | (33,934,962 | ) | 1,123,296 | |||||
Net assets: | ||||||||
Beginning of period | 271,243,247 | 270,119,951 | ||||||
End of period | $ | 237,308,285 | $ | 271,243,247 |
(1) | The Securities and Exchange Commission eliminated the requirement to disclose distribution components separately, except for tax return of capital. For the year ended August 31, 2018, distributions to shareholders from distributable earnings consisted of distributions from net investment income. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Low Volatility Equity Yield Fund |
Notes to Financial Statements
February 28, 2019
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Low Volatility Equity Yield 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 anopen-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is income and long-term growth of capital.
The Fund currently consists of seven different classes of shares: Class A, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6. Class Y and Investor Class shares are available only to certain investors. Class A shares are sold with afront-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Investor Class, Class R5 and Class R6 shares are sold at net asset value.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946,Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in theover-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments inopen-end andclosed-end registered investment companies that do not trade on an exchange are valued at theend-of-day net asset value per share. Investments inopen-end andclosed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such asinstitution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
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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 (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities.Pay-in-kind interest income andnon-cash dividend income received in the form of securitiesin-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on theex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates 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 net investment income, if any, are declared and paid quarterly and are recorded on theex-dividend date. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on theex-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 of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses– Fees provided for under the Rule12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6are allocated to each share class based on relative net assets.Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
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 theperiod-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 the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
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 (“Counterparties”) 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 |
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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 designated 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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
First $250 million | 0.60% | |||
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% |
For the six months ended February 28, 2019, the effective advisory fees incurred by the Fund was 0.60%.
Under the terms of a mastersub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “AffiliatedSub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such AffiliatedSub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such AffiliatedSub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2019, to waive advisory fees and/or reimburse expenses 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, Investor Class, Class R5 and Class R6 shares to 2.00%, 2.75%, 2.25%, 1.75%, 2.00%, 1.75% and 1.75%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary ornon-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2019. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limit.
Further, the Adviser has contractually agreed, through at least June 30, 2020, 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 28, 2019, the Adviser waived advisory fees of $3,236.
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 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into asub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and 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 orsub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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, Investor Class, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule12b-1 under the 1940 Act with respect to the Fund’s Class A, 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 C shares and 0.50% of the average daily net assets of Class R shares. The Fund, pursuant to the Investor Class Plan, reimburses IDI for its allocated share of expenses incurred pursuant to the Investor Class Plan for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Investor Class shares. 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
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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 28, 2019, expenses incurred under the Plans are shown in the Statement of Operations asDistribution 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 28, 2019, IDI advised the Fund that IDI retained $6,415 infront-end sales commissions from the sale of Class A shares and $816 and $212 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.
NOTE 3–Additional Valuation Information
Generally Accepted Accounting Principles (“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 28, 2019. 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.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||||||||
Common Stocks & Other Equity Interests | $ | 231,815,192 | $ | – | $– | $ | 231,815,192 | |||||||||||||||||||||
U.S. Treasury Securities | – | 549,552 | – | 549,552 | ||||||||||||||||||||||||
Money Market Funds | 4,827,976 | – | – | 4,827,976 | ||||||||||||||||||||||||
Total Investments in Securities | 236,643,168 | 549,552 | – | 237,192,720 | ||||||||||||||||||||||||
Other Investments - Assets* | ||||||||||||||||||||||||||||
Futures Contracts | 336,174 | – | – | 336,174 | ||||||||||||||||||||||||
Total Investments | $ | 236,979,342 | $ | 549,552 | $– | $ | 237,528,894 |
* | Unrealized appreciation (depreciation). |
NOTE 4–Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions andclose-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
Value of Derivative Investments atPeriod-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of February 28, 2019:
Value | ||||
Derivative Assets | Equity Risk | |||
Unrealized appreciation on futures contracts – Exchange-Traded(a) | $ | 336,174 | ||
Derivatives not subject to master netting agreements | (336,174 | ) | ||
Total Derivative Assets subject to master netting agreements | $ | – |
(a) | The daily variation margin receivable (payable) atperiod-end is recorded in the Statement of Assets and Liabilities. |
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Effect of Derivative Investments for the six months ended February 28, 2019
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain (Loss) on | ||
Statement of Operations | ||
Equity Risk | ||
Realized (Loss): | $(545,394) | |
Change in Net Unrealized Appreciation: | 162,316 | |
Total | $(383,078) |
The table below summarizes the average notional value of derivatives held during the period.
Futures | ||||
Contracts | ||||
Average notional value | $ | 6,093,208 |
NOTE 5–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $3,691.
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, andTrustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan.Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any atperiod-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 GAAP. 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 fiscalyear-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. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of August 31, 2018.
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2019 was $129,788,472 and $139,320,702, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reportingperiod-end.
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Unrealized Appreciation (Depreciation) of Investments on a TaxBasis | ||||
Aggregate unrealized appreciation of investments | $18,377,642 | |||
Aggregate unrealized (depreciation) of investments | (7,933,092 | ) | ||
Net unrealized appreciation of investments | $10,444,550 | |||
Cost of investments for tax purposes is $227,084,344. |
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
Six months ended February 28, 2019(a) | Year ended August 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Sold: | ||||||||||||||||
Class A | 1,769,907 | $ | 18,826,775 | 477,803 | $ | 5,459,288 | ||||||||||
Class B(b) | – | – | 766 | 8,651 | ||||||||||||
Class C | 92,043 | 1,009,607 | 122,796 | 1,385,278 | ||||||||||||
Class R | 9,046 | 100,233 | 2,142 | 23,643 | ||||||||||||
Class Y | 95,092 | 1,038,292 | 318,282 | 3,643,035 | ||||||||||||
Investor Class | 40,366 | 440,216 | 151,983 | 1,736,071 | ||||||||||||
Class R5 | 1,637 | 18,055 | 35,765 | 403,115 | ||||||||||||
Class R6 | 34,635 | 362,585 | 124,329 | 1,474,240 | ||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 316,060 | 3,307,231 | 236,073 | 2,636,182 | ||||||||||||
Class B(b) | – | – | 819 | 8,970 | ||||||||||||
Class C | 36,432 | 370,663 | 18,887 | 206,361 | ||||||||||||
Class R | 619 | 6,408 | 397 | 4,402 | ||||||||||||
Class Y | 18,163 | 191,294 | 15,976 | 178,996 | ||||||||||||
Investor Class | 89,779 | 943,127 | 67,157 | 752,458 | ||||||||||||
Class R5 | 26,695 | 282,328 | 24,740 | 278,677 | ||||||||||||
Class R6 | 2,748 | 29,030 | 713 | 8,121 | ||||||||||||
Conversion of Class B shares to Class A shares:(c) | ||||||||||||||||
Class A | – | – | 105,439 | 1,259,997 | ||||||||||||
Class B | – | – | (108,653 | ) | (1,259,997 | ) | ||||||||||
Reacquired: | ||||||||||||||||
Class A | (996,426 | ) | (10,867,321 | ) | (2,098,931 | ) | (23,805,737 | ) | ||||||||
Class B(b) | – | – | (13,971 | ) | (153,089 | ) | ||||||||||
Class C | (1,623,931 | ) | (16,990,210 | ) | (446,150 | ) | (4,987,172 | ) | ||||||||
Class R | (469 | ) | (5,540 | ) | (14,904 | ) | (164,118 | ) | ||||||||
Class Y | (142,891 | ) | (1,543,206 | ) | (638,088 | ) | (7,281,165 | ) | ||||||||
Investor Class | (397,062 | ) | (4,212,552 | ) | (565,725 | ) | (6,458,000 | ) | ||||||||
Class R5 | (473 | ) | (5,119 | ) | (314,914 | ) | (3,749,445 | ) | ||||||||
Class R6 | (15,079 | ) | (163,113 | ) | (19,402 | ) | (224,329 | ) | ||||||||
Net increase (decrease) in share activity | (643,109 | ) | $ | (6,861,217 | ) | (2,516,671 | ) | $ | (28,615,567 | ) |
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 11% 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) | Class B shares activity for the period September 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
16 | Invesco Low Volatility Equity Yield Fund |
NOTE 11–Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net income to average net assets | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $ | 12.13 | $ | 0.09 | $ | (1.04 | ) | $ | (0.95 | ) | $ | (0.06 | ) | $ | (0.20 | ) | $ | (0.26 | ) | $ | 10.92 | (7.78 | )% | $ | 169,421 | 1.16 | %(d) | 1.16 | %(d) | 1.61 | %(d) | 54 | % | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.86 | 0.15 | 1.31 | 1.46 | (0.19 | ) | - | (0.19 | ) | 12.13 | 13.57 | 175,074 | 1.21 | 1.21 | 1.35 | 119 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 9.97 | 0.24 | 0.90 | 1.14 | (0.25 | ) | - | (0.25 | ) | 10.86 | 11.65 | 170,628 | 1.21 | 1.21 | 2.33 | 108 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 9.40 | 0.25 | 0.62 | 0.87 | (0.30 | ) | - | (0.30 | ) | 9.97 | 9.40 | 173,949 | 1.20 | 1.20 | 2.59 | 107 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 11.75 | 0.26 | (1.43 | ) | (1.17 | ) | (0.31 | ) | (0.87 | ) | (1.18 | ) | 9.40 | (10.72 | ) | 177,739 | 1.15 | 1.15 | 2.49 | 101 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 9.98 | 0.31 | 1.92 | 2.23 | (0.29 | ) | (0.17 | ) | (0.46 | ) | 11.75 | 22.91 | 224,786 | 1.14 | 1.14 | 2.80 | 109 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 11.92 | 0.05 | (1.04 | ) | (0.99 | ) | (0.01 | ) | (0.20 | ) | (0.21 | ) | 10.72 | (8.20 | ) | 5,830 | 1.91 | (d) | 1.91 | (d) | 0.86 | (d) | 54 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.68 | 0.07 | 1.27 | 1.34 | (0.10 | ) | - | (0.10 | ) | 11.92 | 12.64 | 24,319 | 1.96 | 1.96 | 0.60 | 119 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 9.80 | 0.16 | 0.89 | 1.05 | (0.17 | ) | - | (0.17 | ) | 10.68 | 10.87 | 25,022 | 1.96 | 1.96 | 1.58 | 108 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 9.24 | 0.17 | 0.61 | 0.78 | (0.22 | ) | - | (0.22 | ) | 9.80 | 8.59 | 28,435 | 1.95 | 1.95 | 1.84 | 107 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 11.56 | 0.18 | (1.41 | ) | (1.23 | ) | (0.22 | ) | (0.87 | ) | (1.09 | ) | 9.24 | (11.37 | ) | 29,959 | 1.90 | 1.90 | 1.74 | 101 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 9.82 | 0.22 | 1.89 | 2.11 | (0.20 | ) | (0.17 | ) | (0.37 | ) | 11.56 | 22.01 | 40,119 | 1.89 | 1.89 | 2.05 | 109 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 12.07 | 0.07 | (1.04 | ) | (0.97 | ) | (0.04 | ) | (0.20 | ) | (0.24 | ) | 10.86 | (7.94 | ) | 344 | 1.41 | (d) | 1.41 | (d) | 1.36 | (d) | 54 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.81 | 0.13 | 1.29 | 1.42 | (0.16 | ) | - | (0.16 | ) | 12.07 | 13.25 | 271 | 1.46 | 1.46 | 1.10 | 119 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 9.92 | 0.21 | 0.91 | 1.12 | (0.23 | ) | - | (0.23 | ) | 10.81 | 11.42 | 376 | 1.46 | 1.46 | 2.08 | 108 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 9.35 | 0.22 | 0.62 | 0.84 | (0.27 | ) | - | (0.27 | ) | 9.92 | 9.16 | 268 | 1.45 | 1.45 | 2.34 | 107 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 11.69 | 0.24 | (1.43 | ) | (1.19 | ) | (0.28 | ) | (0.87 | ) | (1.15 | ) | 9.35 | (10.93 | ) | 170 | 1.40 | 1.40 | 2.24 | 101 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 9.93 | 0.28 | 1.91 | 2.19 | (0.26 | ) | (0.17 | ) | (0.43 | ) | 11.69 | 22.60 | 206 | 1.39 | 1.39 | 2.55 | 109 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 12.19 | 0.10 | (1.05 | ) | (0.95 | ) | (0.07 | ) | (0.20 | ) | (0.27 | ) | 10.97 | (7.71 | ) | 9,079 | 0.91 | (d) | 0.91 | (d) | 1.86 | (d) | 54 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.91 | 0.18 | 1.32 | 1.50 | (0.22 | ) | - | (0.22 | ) | 12.19 | 13.89 | 10,450 | 0.96 | 0.96 | 1.60 | 119 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 10.02 | 0.27 | 0.90 | 1.17 | (0.28 | ) | - | (0.28 | ) | 10.91 | 11.89 | 12,671 | 0.96 | 0.96 | 2.58 | 108 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 9.45 | 0.27 | 0.62 | 0.89 | (0.32 | ) | - | (0.32 | ) | 10.02 | 9.64 | 8,152 | 0.95 | 0.95 | 2.84 | 107 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 11.80 | 0.29 | (1.43 | ) | (1.14 | ) | (0.34 | ) | (0.87 | ) | (1.21 | ) | 9.45 | (10.43 | ) | 4,861 | 0.90 | 0.90 | 2.74 | 101 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 10.02 | 0.33 | 1.94 | 2.27 | (0.32 | ) | (0.17 | ) | (0.49 | ) | 11.80 | 23.24 | 5,383 | 0.89 | 0.89 | 3.05 | 109 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Investor Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 12.17 | 0.09 | (1.05 | ) | (0.96 | ) | (0.06 | ) | (0.20 | ) | (0.26 | ) | 10.95 | (7.84 | ) | 39,779 | 1.16 | (d) | 1.16 | (d) | 1.61 | (d) | 54 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.90 | 0.16 | 1.30 | 1.46 | (0.19 | ) | - | (0.19 | ) | 12.17 | 13.53 | 47,454 | 1.21 | 1.21 | 1.35 | 119 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 10.00 | 0.24 | 0.91 | 1.15 | (0.25 | ) | - | (0.25 | ) | 10.90 | 11.73 | 46,259 | 1.21 | 1.21 | 2.33 | 108 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 9.43 | 0.25 | 0.62 | 0.87 | (0.30 | ) | - | (0.30 | ) | 10.00 | 9.38 | 53,620 | 1.20 | 1.20 | 2.59 | 107 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 11.78 | 0.27 | (1.44 | ) | (1.17 | ) | (0.31 | ) | (0.87 | ) | (1.18 | ) | 9.43 | (10.68 | ) | 52,880 | 1.15 | 1.15 | 2.49 | 101 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 10.01 | 0.31 | 1.92 | 2.23 | (0.29 | ) | (0.17 | ) | (0.46 | ) | 11.78 | 22.85 | 65,428 | 1.14 | 1.14 | 2.80 | 109 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 12.21 | 0.11 | (1.06 | ) | (0.95 | ) | (0.08 | ) | (0.20 | ) | (0.28 | ) | 10.98 | (7.70 | ) | 11,440 | 0.75 | (d) | 0.75 | (d) | 2.02 | (d) | 54 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.93 | 0.20 | 1.32 | 1.52 | (0.24 | ) | - | (0.24 | ) | 12.21 | 14.06 | 12,374 | 0.79 | 0.79 | 1.77 | 119 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 10.03 | 0.29 | 0.91 | 1.20 | (0.30 | ) | - | (0.30 | ) | 10.93 | 12.20 | 13,858 | 0.77 | 0.77 | 2.77 | 108 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 9.46 | 0.29 | 0.62 | 0.91 | (0.34 | ) | - | (0.34 | ) | 10.03 | 9.82 | 13,194 | 0.77 | 0.77 | 3.02 | 107 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 11.82 | 0.31 | (1.44 | ) | (1.13 | ) | (0.36 | ) | (0.87 | ) | (1.23 | ) | 9.46 | (10.35 | ) | 13,881 | 0.75 | 0.75 | 2.89 | 101 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 10.03 | 0.35 | 1.94 | 2.29 | (0.33 | ) | (0.17 | ) | (0.50 | ) | 11.82 | 23.48 | 16,272 | 0.75 | 0.75 | 3.19 | 109 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 12.20 | 0.11 | (1.05 | ) | (0.94 | ) | (0.08 | ) | (0.20 | ) | (0.28 | ) | 10.98 | (7.61 | ) | 1,415 | 0.74 | (d) | 0.74 | (d) | 2.03 | (d) | 54 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.93 | 0.21 | 1.30 | 1.51 | (0.24 | ) | - | (0.24 | ) | 12.20 | 14.00 | 1,301 | 0.75 | 0.75 | 1.81 | 119 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17(e) | 10.58 | 0.12 | 0.31 | 0.43 | (0.08 | ) | - | (0.08 | ) | 10.93 | 4.05 | 10 | 0.75 | (f) | 0.75 | (f) | 2.79 | (f) | 108 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $159,998, $18,799, $291, $9,326, $42,005, $11,340 and $1,255 for Class A, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6shares, respectively. |
(e) | Commencement date of April 4, 2017. (f) Annualized. |
17 | Invesco Low Volatility Equity Yield Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service(12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2018 through February 28, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||||||||||||||||||||
Beginning (09/01/18) | Ending Account Value (02/28/19)1 | Expenses Paid During Period2 | Ending Account Value (02/28/19) | Expenses Paid During Period2 | Annualized Expense Ratio | |||||||||||||||||||||||||
Class A | $1,000.00 | $922.20 | $5.53 | $1,019.04 | $5.81 | 1.16 | % | |||||||||||||||||||||||
Class C | 1,000.00 | 918.00 | 9.08 | 1,015.32 | 9.54 | 1.91 | ||||||||||||||||||||||||
Class R | 1,000.00 | 920.60 | 6.71 | 1,017.80 | 7.05 | 1.41 | ||||||||||||||||||||||||
Class Y | 1,000.00 | 922.90 | 4.34 | 1,020.28 | 4.56 | 0.91 | ||||||||||||||||||||||||
Investor Class | 1,000.00 | 921.60 | 5.53 | 1,019.04 | 5.81 | 1.16 | ||||||||||||||||||||||||
Class R5 | 1,000.00 | 923.00 | 3.58 | 1,021.08 | 3.76 | 0.75 | ||||||||||||||||||||||||
Class R6 | 1,000.00 | 923.90 | 3.53 | 1,021.12 | 3.71 | 0.74 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2018 through February 28, 2019, 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 181/365 to reflect the most recent fiscal half year. |
18 | Invesco Low Volatility Equity Yield Fund |
Explore High-Conviction Investing with Invesco
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Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
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∎ | Fund reports and prospectuses |
∎ | Quarterly statements |
∎ | Daily confirmations |
∎ | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on FormN-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s FormsN-Q (or any successor Form) on the SEC website at sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines.
The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov. | ||
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd. |
SEC file numbers: 811-09913 and 333-36074 | Invesco Distributors, Inc. | LVEY-SAR-1 | 04222019 | 0802 |
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Semiannual Report to Shareholders
| February 28, 2019 | |||
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Invesco Pennsylvania Tax Free Income Fund
Nasdaq: A: VKMPX ∎ C: VKPCX ∎ Y: VKPYX ∎ R6: VKPSX |
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2 | Fund Performance | |||
4 | Letters to Shareholders | |||
5 | Schedule of Investments | |||
11 | Financial Statements | |||
15 | Notes to Financial Statements | |||
20 | Financial Highlights | |||
22 | Fund Expenses |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800 959 4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most currentmonth-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
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Fund vs. Indexes |
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Cumulative total returns, 8/31/18 to 2/28/19, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) orfront-end sales charges, which would have reduced performance. |
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Class A Shares | 1.39 | % | ||
Class C Shares | 1.07 | |||
Class Y Shares | 1.58 | |||
Class R6 Shares | 1.62 | |||
S&P Municipal Bond Index▼ (Broad Market Index) | 2.21 | |||
S&P Municipal Bond Pennsylvania 5+ Year Investment Grade Index▼(Style-Specific Index) | 2.89 | |||
Lipper Pennsylvania Municipal Debt Funds Index∎(Peer Group Index) | 2.27 | |||
Source(s):▼RIMES Technologies Corp.;∎Lipper Inc. | ||||
TheS&P Municipal Bond Indexis a broad, market value-weighted index that seeks to measure the performance of the US municipal bond market. |
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TheS&P Municipal Bond Pennsylvania 5+ Year Investment Grade Indextracks the performance of investment grade, Pennsylvania-issued US municipals with maturities are equal to or greater than five years. |
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TheLipper Pennsylvania Municipal Debt Funds Indexis an unmanaged index considered representative of funds that limit assets to those securities that are exempt from taxation in Pennsylvania. |
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The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes. |
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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.
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For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
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2 | Invesco Pennsylvania Tax Free Income Fund |
Average Annual Total Returns |
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As of 2/28/19, including maximum applicable sales charges |
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Class A Shares | ||||
Inception (5/1/87) | 5.33 | % | ||
10 Years | 4.74 | |||
5 Years | 2.78 | |||
1 Year | -1.32 | |||
Class C Shares* |
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Inception (8/13/93) | 3.85 | % | ||
10 Years | 4.41 | |||
5 Years | 2.92 | |||
1 Year | 1.33 | |||
Class Y Shares |
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10 Years | 5.43 | % | ||
5 Years | 3.95 | |||
1 Year | 3.34 | |||
Class R6 Shares |
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10 Years | 5.25 | % | ||
5 Years | 3.80 | |||
1 Year | 3.40 | |||
*Effective January 26, 2019, Class C share performance includes the conversion to A shares after 10 years. |
|
Effective June 1, 2010, Class A 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 and Class C shares, respectively, of Invesco Van Kampen Pennsylvania Tax Free Income Fund (renamed Invesco Pennsylvania Tax Free Income Fund). Returns shown above, prior to June 1, 2010, for Class A and Class C shares are blended returns of the predecessor fund and Invesco 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 the12b-1 fees applicable to Class A shares.
Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares and includes the12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recentmonth-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance
Average Annual Total Returns |
| |||
As of 12/31/18, the most recent calendar quarter end, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (5/1/87) | 5.33 | % | ||
10 Years | 5.36 | |||
5 Years | 3.36 | |||
1 Year | -3.46 | |||
Class C Shares |
| |||
Inception (8/13/93) | 3.37 | % | ||
10 Years | 5.03 | |||
5 Years | 3.50 | |||
1 Year | -0.89 | |||
Class Y Shares |
| |||
10 Years | 6.05 | % | ||
5 Years | 4.53 | |||
1 Year | 1.15 | |||
Class R6 Shares |
| |||
10 Years | 5.86 | % | ||
5 Years | 4.37 | |||
1 Year | 1.19 |
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 Y and Class R6 shares was 1.36%, 2.11%, 1.11% and 1.07%, 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 4.25% 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 Y and Class R6 shares do not have afront-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 | Invesco Pennsylvania Tax Free Income Fund |
Letters to Shareholders
Bruce Crockett | Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time; monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory andsub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper, Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. |
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward. |
Our website,invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246. All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
4 | Invesco Pennsylvania Tax Free Income Fund |
Schedule of Investments
February 28, 2019
(Unaudited)
Interest Rate | Maturity Date | Principal Amount | Value | |||||||||||
MunicipalObligations-110.43%(a) | ||||||||||||||
Pennsylvania-105.64% | ||||||||||||||
Allegheny (County of); Series2016C-76, Unlimited Tax GO Bonds(b) | 5.00% | 11/01/2041 | $2,820 | $ | 3,156,200 | |||||||||
Allegheny (County of) Higher Education Building Authority (Carnegie Mellon University); Series 2008 A, VRD University RB(c) | 1.56% | 12/01/2037 | 1,000 | 1,000,000 | ||||||||||
Allegheny (County of) Higher Education Building Authority (Chatham University); Series 2012 A, University RB | 5.00% | 09/01/2035 | 1,000 | 1,029,000 | ||||||||||
Allegheny (County of) Higher Education Building Authority (Duquesne University); | ||||||||||||||
Series 1998, Ref. University RB (INS -AMBAC)(d) | 5.50% | 03/01/2020 | 660 | 673,200 | ||||||||||
Series 2011 A, University RB(e)(f) | 5.50% | 03/01/2021 | 550 | 590,981 | ||||||||||
Allegheny (County of) Hospital Development Authority (Allegheny Health Network Obligated Group); Series 2018 A, Ref. RB(b)(g) | 5.00% | 04/01/2047 | 2,115 | 2,316,475 | ||||||||||
Allegheny (County of) Hospital Development Authority (University of Pittsburgh Medical Center); Series 2009, RB | 5.62% | 08/15/2039 | 1,250 | 1,268,637 | ||||||||||
Allegheny (County of) Industrial Development Authority (Residential Resources, Inc.); Series 2006, Lease RB | 5.10% | 09/01/2026 | 980 | 981,470 | ||||||||||
Allegheny (County of) Sanitary Authority; Series 2015, Ref. RB(b) | 5.00% | 12/01/2045 | 2,120 | 2,358,988 | ||||||||||
Allentown Neighborhood Improvement Zone Development Authority (City Center); | ||||||||||||||
Series 2017, Tax RB(h) | 5.00% | 05/01/2022 | 325 | 342,326 | ||||||||||
Series 2018, Tax RB(h) | 5.00% | 05/01/2042 | 615 | 660,276 | ||||||||||
Berks (County of) Industrial Development Authority (Highlands at Wyomissing); | ||||||||||||||
Series 2017 A, Ref. Healthcare Facilities RB | 5.00% | 05/15/2037 | 750 | 799,905 | ||||||||||
Series 2017 C, Healthcare Facilities RB | 5.00% | 05/15/2047 | 325 | 343,944 | ||||||||||
Berks (County of) Municipal Authority (Reading Hospital Medical Center); Series 2012 A, RB | 5.00% | 11/01/2040 | 1,000 | 1,060,230 | ||||||||||
Bethlehem (City of); | ||||||||||||||
Series 2014, Ref. Gtd. Water RB (INS-BAM)(d) | 5.00% | 11/15/2030 | 425 | 466,761 | ||||||||||
Series 2014, Ref. Gtd. Water RB (INS-BAM)(d) | 5.00% | 11/15/2031 | 425 | 466,289 | ||||||||||
Bethlehem Area School District; Series 2010, Unlimited Tax GO Bonds(e)(f) | 5.25% | 01/15/2020 | 1,000 | 1,031,170 | ||||||||||
Bucks (County of) Industrial Development Authority (Pennswood Village); Series 2018, Ref. RB | 5.00% | 10/01/2037 | 270 | 291,754 | ||||||||||
Central Bradford Progress Authority (Guthrie Healthcare System); Series 2011, RB | 5.38% | 12/01/2041 | 1,100 | 1,178,705 | ||||||||||
Centre (County of) Hospital Authority (Mt. Nittany Medical Center); | ||||||||||||||
Series 2011, RB(e)(f) | 6.25% | 11/15/2021 | 500 | 559,715 | ||||||||||
Series 2016A, Ref. RB | 5.00% | 11/15/2046 | 500 | 544,825 | ||||||||||
Chester (County of) Industrial Development Authority (Avon Grove Charter School); Series 2017 A, Ref. RB | 5.00% | 12/15/2051 | 770 | 785,300 | ||||||||||
Chester (County of) Industrial Development Authority (Colleguim Charter School); Series 2017 A, RB | 5.25% | 10/15/2047 | 695 | 704,584 | ||||||||||
Chester (County of) Industrial Development Authority (Renaissance Academy Charter School); Series 2014, RB | 5.00% | 10/01/2044 | 1,000 | 1,044,420 | ||||||||||
Chester (County of) Industrial Development Authority (University Student Housing, LLC at West Chester University of Pennsylvania); Series 2013, Student Housing RB | 5.00% | 08/01/2045 | 750 | 774,802 | ||||||||||
Commonwealth Financing Authority; | ||||||||||||||
Series 2018, Tobacco Master Settlement Payment RB(b)(g) | 5.00% | 06/01/2034 | 2,500 | 2,839,425 | ||||||||||
Series 2018, Tobacco Master Settlement Payment RB(b) | 5.00% | 06/01/2035 | 500 | 564,675 | ||||||||||
Cumberland (County of) Municipal Authority (Asbury Pennsylvania Obligated Group); Series 2010, RB | 6.00% | 01/01/2040 | 870 | 886,130 | ||||||||||
Cumberland (County of) Municipal Authority (Association of Independent Colleges & Universities of Pennsylvania Financing Program-Dickinson College); Series 2009, RB(e)(f) | 5.00% | 11/01/2019 | 750 | 766,365 | ||||||||||
Cumberland (County of) Municipal Authority (Diakon Lutheran Ministries); Series 2015, Ref. RB | 5.00% | 01/01/2038 | 1,270 | 1,343,533 | ||||||||||
Dauphin (County of) General Authority (Pinnacle Health System); | ||||||||||||||
Series 2009, Health System RB | 6.00% | 06/01/2036 | 340 | 342,961 | ||||||||||
Series 2009, Ref. Health System RB(e)(f) | 6.00% | 06/01/2019 | 1,875 | 1,895,025 | ||||||||||
Series 2016A, Ref. Health System RB | 5.00% | 06/01/2034 | 510 | 570,853 | ||||||||||
Delaware (County of) Authority (Villanova University); Series 2015, RB | 5.00% | 08/01/2045 | 215 | 243,885 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Pennsylvania Tax Free Income Fund |
Interest Rate | Maturity Date | Principal Amount | Value | |||||||||||
Pennsylvania-(continued) | ||||||||||||||
Delaware (County of) Industrial Development Authority (Covanta); Series 2015, Ref. RB | 5.00% | 07/01/2043 | $ 425 | $ | 428,166 | |||||||||
Delaware River Port Authority; Series 2010 D, RB(e)(f) | 5.00% | 01/01/2020 | 1,000 | 1,028,150 | ||||||||||
Delaware River Port Authority (Port District); | ||||||||||||||
Series 2012, Ref. RB | 5.00% | 01/01/2025 | 540 | 594,594 | ||||||||||
Series 2012, Ref. RB | 5.00% | 01/01/2027 | 535 | 585,039 | ||||||||||
Delaware Valley Regional Financial Authority; Series 2002, RB | 5.75% | 07/01/2032 | 1,000 | 1,290,070 | ||||||||||
Doylestown (City of) Hospital Authority; Series 2013 A, RB (INS-AGM)(d) | 5.00% | 07/01/2024 | 1,000 | 1,107,760 | ||||||||||
DuBois (City of) Hospital Authority (Penn Highlands Healthcare; Series 2018, Ref. Hospital RB | 5.00% | 07/15/2048 | 650 | 715,052 | ||||||||||
East Hempfield (Township of) Industrial Development Authority (Student Services Inc. Student Housing); | ||||||||||||||
Series 2013, RB | 5.00% | 07/01/2035 | 500 | 521,870 | ||||||||||
Series 2014, RB | 5.00% | 07/01/2039 | 250 | 260,410 | ||||||||||
East Hempfield (Township of) Industrial Development Authority (Willow Valley Communities); | ||||||||||||||
Series 2016, Ref. RB | 5.00% | 12/01/2030 | 210 | 235,490 | ||||||||||
Series 2016, Ref. RB | 5.00% | 12/01/2039 | 370 | 401,047 | ||||||||||
Fayette (County of) Hospital Authority (Fayette Regional Health System); Series 2007 B, VRD Hospital RB(LOC-PNC Bank N.A.)(c)(i) | 1.73% | 06/01/2037 | 600 | 600,000 | ||||||||||
Franklin (County of) Industrial Development Authority (Chambersburg Hospital); Series 2010, RB | 5.37% | 07/01/2042 | 1,000 | 1,040,870 | ||||||||||
Franklin (County of) Industrial Development Authority (Menno-Haven, Inc.); Series 2018, Ref. RB | 5.00% | 12/01/2053 | 700 | 712,376 | ||||||||||
Fulton (County of) Industrial Development Authority (The Fulton County Medical Center); Series 2016, Ref. Hospital RB | 5.00% | 07/01/2040 | 1,515 | 1,528,908 | ||||||||||
Geisinger Authority (Geisinger Health System Foundation); Series 2013 A, VRD Health System RB(c) | 1.53% | 10/01/2043 | 100 | 100,000 | ||||||||||
Geisinger Authority (Geisinger Health System); | ||||||||||||||
Series 2011A-1, Health System RB | 5.13% | 06/01/2041 | 500 | 531,620 | ||||||||||
Series 2017A-1, Ref. Health System RB(b) | 5.00% | 02/15/2045 | 2,190 | 2,427,155 | ||||||||||
Lancaster (County of) Hospital Authority (Brethren Village); Series 2017, Ref. RB | 5.13% | 07/01/2037 | 1,135 | 1,182,931 | ||||||||||
Lancaster (County of) Hospital Authority (Landis Homes Retirement Community); Series 2015, Ref. Health Center RB | 5.00% | 07/01/2045 | 625 | 651,075 | ||||||||||
Lancaster (County of) Hospital Authority (Masonic Villages); | ||||||||||||||
Series 2008 D, Ref. VRD RB (LOC - JP Morgan Chase Bank N.A.)(c)(i) | 1.59% | 07/01/2034 | 3,445 | 3,445,000 | ||||||||||
Series 2015, Ref. RB | 5.00% | 11/01/2035 | 210 | 228,106 | ||||||||||
Lehigh (County of) General Purpose Authority (Bible Fellowship Church Homes, Inc.); Series 2013, RB | 5.25% | 07/01/2042 | 825 | 830,181 | ||||||||||
Lehigh (County of) General Purpose Authority (Kidspeace Obligation Group); | ||||||||||||||
Series 2014 A, RB | 7.50% | 02/01/2044 | 651 | 650,493 | ||||||||||
Series 2014 B, Conv. CAB RB(j) | 7.50% | 02/01/2044 | 172 | 55,925 | ||||||||||
Series 2014 C, RB(k) | 0.00% | 02/01/2044 | 516 | 103 | ||||||||||
Lycoming (County of) Authority (Pennsylvania College of Technology); Series 2011, RB | 5.00% | 07/01/2030 | 750 | 790,035 | ||||||||||
Lycoming (County of) Authority (Susquehanna Health System); Series 2009 A, Health System RB | 5.75% | 07/01/2039 | 1,250 | 1,264,475 | ||||||||||
Montgomery (County of) Higher Education & Health Authority (Abington Memorial Hospital Obligated Group); Series 2012, RB(e)(f) | 5.00% | 06/01/2022 | 1,400 | 1,541,344 | ||||||||||
Montgomery (County of) Higher Education & Health Authority (Holy Redeemer Health System); Series 2014, Ref. RB | 5.00% | 10/01/2027 | 390 | 426,024 | ||||||||||
Montgomery (County of) Higher Education & Health Authority (Philadelphia Presbytery House); Series 2017, Ref. RB | 5.00% | 12/01/2037 | 750 | 788,722 | ||||||||||
Montgomery (County of) Higher Education & Health Authority (Thomas Jefferson University); Series 2018 A, Ref. RB | 5.00% | 09/01/2048 | 270 | 298,604 | ||||||||||
Montgomery (County of) Industrial Development Authority (ACTS Retirement-Life Communities, Inc.); | ||||||||||||||
Series 2009A-1, RB(e)(f) | 6.25% | 11/15/2019 | 1,000 | 1,031,730 | ||||||||||
Series 2012, Ref. RB | 5.00% | 11/15/2028 | 900 | 957,924 | ||||||||||
Montgomery (County of) Industrial Development Authority (Albert Einstein Healthcare); Series 2015, Ref. Health System RB | 5.25% | 01/15/2045 | 850 | 913,741 | ||||||||||
Montgomery (County of) Industrial Development Authority (Philadelphia Presbytery Homes, Inc.); Series 2010, RB(e)(f) | 6.62% | 12/01/2021 | 1,500 | 1,696,590 | ||||||||||
Northampton (County of) General Purpose Authority (LaFayette College); Series 2017, Ref. Hospital Facilities RB(b) | 5.00% | 11/01/2047 | 1,635 | 1,844,296 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Pennsylvania Tax Free Income Fund |
Interest Rate | Maturity Date | Principal Amount | Value | |||||||||||
Pennsylvania-(continued) | ||||||||||||||
Northampton (County of) General Purpose Authority (Lehigh University); Series 2009, Higher Education RB(e)(f) | 5.50% | 05/15/2019 | $1,000 | $ | 1,007,880 | |||||||||
Northampton (County of) General Purpose Authority (St. Luke’s University Health Network); | ||||||||||||||
Series 2016, Ref. Hospital RB | 5.00% | 08/15/2036 | 330 | 368,089 | ||||||||||
Series 2018 A, Ref. Hospital RB | 4.00% | 08/15/2048 | 645 | 639,730 | ||||||||||
Northampton (County of) Industrial Development Authority (Morningstar Senior Living, Inc.); Series 2012, RB | 5.00% | 07/01/2032 | 920 | 934,573 | ||||||||||
Pennsylvania (Commonwealth of); | ||||||||||||||
First Series 2014, Unlimited Tax GO Bonds(b) | 5.00% | 06/15/2034 | 3,000 | 3,362,341 | ||||||||||
Series 2018 A, Ref. COP | 5.00% | 07/01/2043 | 590 | 651,301 | ||||||||||
Series 2018 A, Ref. COP | 4.00% | 07/01/2046 | 540 | 544,752 | ||||||||||
Pennsylvania (State of) Economic Development Financing Agency (Forum Place); Series 2012, Governmental Lease RB | 5.00% | 03/01/2034 | 500 | 524,275 | ||||||||||
Pennsylvania (State of) Economic Development Financing Authority (Amtrak); Series 2012 A, Ref. Exempt Facilities RB(l) | 5.00% | 11/01/2041 | 1,200 | 1,284,012 | ||||||||||
Pennsylvania (State of) Economic Development Financing Authority (Capital Region Parking System); Series 2013, Jr. Parking System RB | 6.00% | 07/01/2053 | 920 | 1,058,193 | ||||||||||
Pennsylvania (State of) Economic Development Financing Authority (National Gypson Co.); Series 2014, Ref. Exempt Facilities RB(l) | 5.50% | 11/01/2044 | 635 | 659,943 | ||||||||||
Pennsylvania (State of) Economic Development Financing Authority (PA Bridges Finco L.P.); Series 2015, RB (l) | 5.00% | 12/31/2034 | 1,235 | 1,355,708 | ||||||||||
Pennsylvania (State of) Economic Development Financing Authority (Philadelphia Biosolids Facility); Series 2009, Sewage Sludge Disposal RB | 6.25% | 01/01/2032 | 1,000 | 1,024,850 | ||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (AICUP FinancingProgram-Del Valley College); Series 2012, RB | 5.00% | 11/01/2042 | 535 | 532,758 | ||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (Edinboro University Foundation); Series 2010, RB(e)(f) | 6.00% | 07/01/2020 | 500 | 527,900 | ||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (La Salle University); Series 2012, RB | 5.00% | 05/01/2042 | 1,180 | 1,207,435 | ||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (Shippensburg University Student Services); Series 2012, RB(e)(f) | 5.00% | 10/01/2022 | 1,300 | 1,444,352 | ||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (St. Joseph’s University); Series 2010 A, RB | 5.00% | 11/01/2034 | 500 | 521,415 | ||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (Temple University); First Series 2012, RB | 5.00% | 04/01/2042 | 570 | 610,088 | ||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (Thomas Jefferson University); Series 2015, Ref. RB | 5.25% | 09/01/2050 | 845 | 950,118 | ||||||||||
Pennsylvania (State of) Higher Educational Facilities Authority (Trustees of the University of Pennsylvania); Series 2017, RB(b) | 5.00% | 08/15/2046 | 2,200 | 2,506,790 | ||||||||||
Pennsylvania (State of) Turnpike Commission; | ||||||||||||||
Series 2009 C, Conv. CAB RB (INS-AGM)(d)(j) | 6.25% | 06/01/2033 | 2,000 | 2,448,680 | ||||||||||
Series 2009 E, Conv. CAB RB(j) | 6.37% | 12/01/2038 | 1,435 | 1,780,921 | ||||||||||
Series 2010A-1, Motor License Fund Special RB(e)(f) | 5.00% | 12/01/2019 | 500 | 512,470 | ||||||||||
Series 2018A-2, RB | 5.00% | 12/01/2043 | 535 | 601,613 | ||||||||||
Series 2018 B, Sub. Oil Franchise Tax RB | 5.25% | 12/01/2048 | 630 | 717,469 | ||||||||||
Subseries 2010A-2, Ref. Motor License Fund Special RB(e)(f) | 5.50% | 12/01/2020 | 820 | 874,399 | ||||||||||
Subseries 2010A-2, Sub. Motor License Fund Special RB(e)(f) | 5.50% | 12/01/2020 | 180 | 191,941 | ||||||||||
Subseries 2010B-2, Motor License Fund Special RB(e)(f) | 5.00% | 12/01/2020 | 235 | 248,581 | ||||||||||
Subseries 2010B-2, Ref. Sub. Special Turnpike RB(e)(f) | 5.00% | 12/01/2020 | 265 | 280,314 | ||||||||||
Subseries 2010B-2, Sub. RB(e)(f) | 5.13% | 12/01/2020 | 500 | 529,965 | ||||||||||
Subseries 2010B-2, Sub. Special Turnpike RB(e)(f) | 5.00% | 12/01/2020 | 125 | 131,891 | ||||||||||
Subseries 2017B-1, Sub. Turnpike RB | 5.25% | 06/01/2047 | 1,000 | 1,108,180 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Pennsylvania Tax Free Income Fund |
Interest Rate | Maturity Date | Principal Amount | Value | |||||||||||
Pennsylvania-(continued) | ||||||||||||||
Philadelphia (City of); | ||||||||||||||
Ninth Series 2010, Gas Works RB(e)(f) | 5.25% | 08/01/2020 | $ 390 | $ 409,348 | ||||||||||
Ninth Series 2010, Gas Works RB | 5.25% | 08/01/2040 | 610 | 635,773 | ||||||||||
Series 2009 A, Ref. Unlimited Tax GO Bonds(e)(f) | 5.50% | 08/01/2019 | 110 | 111,773 | ||||||||||
Series 2009 A, Ref. Unlimited Tax GO Bonds (INS-AGC)(d) | 5.50% | 08/01/2024 | 890 | 903,679 | ||||||||||
Series 2010 C, Water & Wastewater RB(e)(f) | 5.00% | 08/01/2020 | 970 | 1,016,153 | ||||||||||
Series 2010 C, Water & Wastewater RB(e)(f) | 5.00% | 08/01/2020 | 280 | 293,121 | ||||||||||
Series 2011, Unlimited Tax GO Bonds(e)(f) | 6.00% | 08/01/2020 | 500 | 530,725 | ||||||||||
Series 2017 A, Ref. Unlimited Tax GO Bonds | 5.00% | 08/01/2036 | 700 | 779,121 | ||||||||||
Series 2017 A, Water & Wastewater RB(b)(g) | 5.25% | 10/01/2052 | 2,070 | 2,360,752 | ||||||||||
Series 2017 B, Ref. Airport RB(l) | 5.00% | 07/01/2047 | 1,000 | 1,100,310 | ||||||||||
Series 2017, Ref. Unlimited Tax GO Bonds | 5.00% | 08/01/2041 | 880 | 961,849 | ||||||||||
Philadelphia (City of) Authority for Industrial Development (The Children’s Hospital of Philadelphia); Series 2014 A, Hospital RB(b) | 5.00% | 07/01/2042 | 1,500 | 1,641,990 | ||||||||||
Philadelphia (City of) Authority for Industrial Development (Wesley Enhanced Living Obligated Group); Series 2017, Ref. Sr. Living Facilities RB | 5.00% | 07/01/2042 | 1,000 | 1,015,580 | ||||||||||
Philadelphia (City of) Hospitals & Higher Education Facilities Authority (Jefferson Health System); Series 2010 B, RB(e)(f) | 5.00% | 05/15/2020 | 1,500 | 1,558,920 | ||||||||||
Philadelphia (City of) Hospitals & Higher Education Facilities Authority (Temple University Health System); Series 2017, Ref. RB | 5.00% | 07/01/2032 | 1,000 | 1,088,690 | ||||||||||
Philadelphia (City of) Industrial Development Authority (Architecture & Design Charter High School); Series 2013, RB | 6.12% | 03/15/2043 | 585 | 447,016 | ||||||||||
Philadelphia (City of) Industrial Development Authority (Discovery Charter School); Series 2012, RB | 6.25% | 04/01/2042 | 1,000 | 1,009,380 | ||||||||||
Philadelphia (City of) Industrial Development Authority (First Philadelphia Preparatory Charter School); Series 2014 A, RB | 7.00% | 06/15/2033 | 875 | 968,494 | ||||||||||
Philadelphia (City of) Industrial Development Authority (Independence Charter School); Series 2007 A, RB | 5.50% | 09/15/2037 | 1,235 | 1,237,013 | ||||||||||
Philadelphia (City of) Industrial Development Authority (Kipp Philadelphia Charter School); Series 2016B, RB | 5.00% | 04/01/2046 | 640 | 640,352 | ||||||||||
Philadelphia (City of) Industrial Development Authority (MaST Charter School); Series 2010, RB(e)(f) | 6.00% | 08/01/2020 | 700 | 740,992 | ||||||||||
Philadelphia (City of) Industrial Development Authority (MaST I Charter School); Series 2016 A, Ref. RB | 5.25% | 08/01/2046 | 1,500 | 1,518,270 | ||||||||||
Philadelphia (City of) Industrial Development Authority (New Foundations Charter School); Series 2012, RB(e)(f) | 6.62% | 12/15/2022 | 750 | 879,855 | ||||||||||
Philadelphia (City of) Industrial Development Authority (Performing Arts Charter School); Series 2013, RB (h) | 6.50% | 06/15/2033 | 945 | 974,011 | ||||||||||
Philadelphia (City of) Industrial Development Authority (University of the Arts); Series 2017, Ref. RB(h) | 5.00% | 03/15/2045 | 540 | 533,790 | ||||||||||
Philadelphia (State of) Authority for Industrial Development (Cultural and Commercials Corridors); Series 2016, Ref. City Agreement RB | 5.00% | 12/01/2031 | 840 | 948,855 | ||||||||||
Philadelphia (State of) Authority for Industrial Development (Temple University); First Series 2015, Ref. RB | 5.00% | 04/01/2045 | 530 | 588,358 | ||||||||||
Philadelphia School District; | ||||||||||||||
Series 2007 A, Ref. Unlimited Tax GO Bonds (INS -NATL)(d) | 5.00% | 06/01/2025 | 535 | 614,073 | ||||||||||
Series 2008 E, Limited Tax GO Bonds (INS -BHAC)(d) | 5.13% | 09/01/2023 | 250 | 250,860 | ||||||||||
Pittsburgh (City of) & Allegheny (County of) Sports & Exhibition Authority (Regional Asset District); | 5.00% | 02/01/2031 | 1,000 | 1,038,520 | ||||||||||
Pittsburgh (City of) Water & Sewer Authority; Series 2013 A, Ref. First Lien RB | 5.00% | 09/01/2031 | 500 | 555,910 | ||||||||||
State Public School Building Authority (Harrisburg School District); | ||||||||||||||
Series 2009, RB(e)(f) | 5.00% | 05/15/2019 | 165 | 166,139 | ||||||||||
Series 2009, RB(e)(f) | 5.00% | 05/15/2019 | 165 | 166,139 | ||||||||||
Series 2009, RB(e)(f) | 5.00% | 05/15/2019 | 670 | 674,623 | ||||||||||
Series 2016 A, Ref. RB (INS-AGM)(d) | 5.00% | 12/01/2030 | 1,055 | 1,219,675 | ||||||||||
Susquehanna Area Regional Airport Authority; Series 2012 A, Airport System RB(l) | 5.00% | 01/01/2027 | 1,185 | 1,282,751 | ||||||||||
Union (County of) Hospital Authority (Evangelical Community Hospital); Series 2011, Ref. & Improvement RB(e)(f) | 7.00% | 08/01/2021 | 1,000 | 1,123,260 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Pennsylvania Tax Free Income Fund |
Interest Rate | Maturity Date | Principal Amount | Value | |||||||||||
Pennsylvania–(continued) | ||||||||||||||
Washington (County of) Industrial Development Authority (Washington Jefferson College); Series 2010, College RB(e)(f) | 5.25% | 05/01/2020 | $ 500 | $ | 521,030 | |||||||||
Washington (County of) Redevelopment Authority; Series 2018, Ref. Tax Allocation RB | 5.00% | 07/01/2028 | 500 | 516,465 | ||||||||||
Westmoreland (County of) Municipal Authority; Series 2013, RB(e)(f) | 5.00% | 08/15/2023 | 750 | 854,880 | ||||||||||
Wilkes-Barre (City of) Finance Authority (University of Scranton); Series 2010, | 5.00% | 11/01/2020 | 850 | 897,523 | ||||||||||
132,507,630 | ||||||||||||||
Guam–3.54% | ||||||||||||||
Guam (Territory of); Series 2011 A, Business Privilege Tax RB | 5.13% | 01/01/2042 | 785 | 806,320 | ||||||||||
Guam (Territory of) (Section 30); Series 2009 A, Limited Obligation RB(e)(f) | 5.75% | 12/01/2019 | 1,250 | 1,289,000 | ||||||||||
Guam (Territory of) Power Authority; | ||||||||||||||
Series 2010 A, RB(e)(f) | 5.50% | 10/01/2020 | 410 | 434,502 | ||||||||||
Series 2012 A, Ref. RB | 5.00% | 10/01/2034 | 520 | 545,589 | ||||||||||
Guam (Territory of) Waterworks Authority; | ||||||||||||||
Series 2010, Water & Wastewater System RB(e)(f) | 5.62% | 07/01/2020 | 1,000 | 1,051,990 | ||||||||||
Series 2014 A, Ref. Water & Wastewater System RB | 5.00% | 07/01/2029 | 285 | 310,582 | ||||||||||
4,437,983 | ||||||||||||||
Virgin Islands–0.84% | ||||||||||||||
Virgin Islands (Government of) Port Authority; Series 2014 A, Ref. Marine RB(l) | 5.00% | 09/01/2029 | 575 | 564,880 | ||||||||||
Virgin Islands (Government of) Public Finance Authority (Matching Fund Loan Note); Series 2009 B, Ref. Sr. Lien RB | 5.00% | 10/01/2025 | 500 | 490,000 | ||||||||||
1,054,880 | ||||||||||||||
Puerto Rico–0.41% | ||||||||||||||
Children’s Trust Fund; Series 2002, Tobacco Settlement Asset-Backed RB | 5.38% | 05/15/2033 | 260 | 262,514 | ||||||||||
Puerto Rico Sales Tax Financing Corp.; Series 2018A-1, CAB RB(k) | 0.00% | 07/01/2027 | 350 | 254,380 | ||||||||||
516,894 | ||||||||||||||
TOTAL INVESTMENTS IN SECURITIES(m)-110.43% (Cost $133,541,433) | 138,517,387 | |||||||||||||
FLOATING RATE NOTE OBLIGATIONS–(12.15)% | ||||||||||||||
Notes with interest and fee rates ranging from 2.26% to 2.36% at 02/28/2019 and contractual maturities of collateral ranging from 06/01/2034 to 10/01/2052 (See Note 1K)(n) | (15,235,000 | ) | ||||||||||||
OTHER ASSETS LESS LIABILITIES–1.72% | 2,147,782 | |||||||||||||
NET ASSETS–100.00% | $125,430,169 |
Investment Abbreviations:
AGC | – Assured Guaranty Corp. | |
AGM | – Assured Guaranty Municipal Corp. | |
AMBAC | – American Municipal Bond Assurance Corp. | |
BAM | – Build America Mutual Assurance Co. | |
BHAC | – Berkshire Hathaway Assurance Corp. | |
CAB | – Capital Appreciation Bonds | |
Conv. | – Convertible | |
COP | – Certificates of Participation | |
GO | – General Obligation | |
Gtd. | – Guaranteed | |
INS | – Insurer | |
Jr. | – Junior | |
LOC | – Letter of Credit | |
NATL | – National Public Finance Guarantee Corp. | |
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.
9 | Invesco Pennsylvania Tax Free Income Fund |
Notes to Schedule of Investments:
(a) | Calculated as a percentage of net assets. Amounts in excess of 100% are due to the Fund’s use of leverage. |
(b) | Underlying security related to TOB Trusts entered into by the Fund. See Note 1K. |
(c) | Demand security payable upon demand by the Fund at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically by the issuer or agent based on current market conditions. Rate shown is the rate in effect on February 28, 2019. |
(d) | Principal and/or interest payments are secured by the bond insurance company listed. |
(e) | Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral. |
(f) | Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put. |
(g) | Security is subject to a reimbursement agreement which may require the Fund to pay amounts to a counterparty in the event of a significant decline in the market value of the security underlying the TOB Trusts. In case of a shortfall, the maximum potential amount of payments the Fund could ultimately be required to make under the agreement is $4,790,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security underlying the TOB Trusts. |
(h) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). 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 28, 2019 was $2,510,403, which represented 2.00% of the Fund’s Net Assets. |
(i) | Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary. |
(j) | Convertible CAB. The interest rate shown represents the coupon rate at which the bond will accrue at a specified future date. |
(k) | Zero coupon bond issued at a discount. |
(l) | Security subject to the alternative minimum tax. |
(m) | Entities may either issue, guarantee, back or otherwise enhance the credit quality of a security. The entities are not primarily responsible for the issuer’s obligation but may be called upon to satisfy issuer’s obligations. No concentration of any single entity was greater than 5% each. |
(n) | Floating rate note obligations related to securities held. The interest and fee rates shown reflect the rates in effect at February 28, 2019. At February 28, 2019, the Fund’s investments with a value of $25,379,086 are held by TOB Trusts and serve as collateral for the $15,235,000 in the floating rate note obligations outstanding at that date. |
Portfolio Composition
By credit sector, based on total investments
as of February 28, 2019
Revenue Bonds | 71.1 | % | ||
Pre-refunded Bonds | 20.7 | |||
General Obligation Bonds | 7.3 | |||
Other | 0.9 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Pennsylvania Tax Free Income Fund |
Statement of Assets and Liabilities
February 28, 2019
(Unaudited)
Assets: | ||||
Investments in securities, at value | $ | 138,517,387 | ||
Receivable for: | ||||
Investments sold | 390,000 | |||
Fund shares sold | 1,063,545 | |||
Interest | 1,532,586 | |||
Investment for trustee deferred compensation and retirement plans | 41,362 | |||
Other assets | 27,039 | |||
Total assets | 141,571,919 | |||
Liabilities: | ||||
Floating rate note obligations | 15,235,000 | |||
Payable for: | ||||
Dividends | 162,312 | |||
Fund shares reacquired | 34,605 | |||
Amount due custodian | 554,234 | |||
Accrued fees to affiliates | 38,980 | |||
Accrued trustees’ and officers’ fees and benefits | 3,149 | |||
Accrued other operating expenses | 68,362 | |||
Trustee deferred compensation and retirement plans | 45,108 | |||
Total liabilities | 16,141,750 | |||
Net assets applicable to shares outstanding | $ | 125,430,169 | ||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 125,006,947 | ||
Distributable earnings | 423,222 | |||
$ | 125,430,169 |
Net Assets: | ||||
Class A | $ | 109,019,076 | ||
Class C | $ | 5,731,204 | ||
Class Y | $ | 9,636,715 | ||
Class R6 | $ | 1,043,174 | ||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 6,838,873 | |||
Class C | 359,072 | |||
Class Y | 603,864 | |||
Class R6 | 65,364 | |||
Class A: | ||||
Net asset value per share | $ | 15.94 | ||
Maximum offering price per share | $ | 16.65 | ||
Class C: | ||||
Net asset value and offering price per share | $ | 15.96 | ||
Class Y: | ||||
Net asset value and offering price per share | $ | 15.96 | ||
Class R6: | ||||
Net asset value and offering price per share | $ | 15.96 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco Pennsylvania Tax Free Income Fund |
Statement of Operations
For the six months ended February 28, 2019
(Unaudited)
Investment income: | ||||
Interest | $2,890,691 | |||
Expenses: | ||||
Advisory fees | 303,754 | |||
Administrative services fees | 19,595 | |||
Custodian fees | 568 | |||
Distribution fees: | ||||
Class A | 130,678 | |||
Class C | 41,210 | |||
Interest, facilities and maintenance fees | 240,327 | |||
Transfer agent fees – A, C and Y | 47,111 | |||
Trustees’ and officers’ fees and benefits | 10,164 | |||
Registration and filing fees | 28,962 | |||
Reports to shareholders | 11,787 | |||
Professional services fees | 38,179 | |||
Other | 16,638 | |||
Total expenses | 888,973 | |||
Less: Expense offset arrangement(s) | (295 | ) | ||
Net expenses | 888,678 | |||
Net investment income | 2,002,013 | |||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from Investment securities | (866,963 | ) | ||
Change in net unrealized appreciation (depreciation) of Investment securities | 577,010 | |||
Net realized and unrealized gain (loss) | (289,953 | ) | ||
Net increase in net assets resulting from operations | $1,712,060 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 | Invesco Pennsylvania Tax Free Income Fund |
Statement of Changes in Net Assets
For the six months ended February 28, 2019 and the year ended August 31, 2018
(Unaudited)
February 28, 2019 | August 31, 2018 | |||||||
Operations: | ||||||||
Net investment income | $ | 2,002,013 | $ | 5,506,334 | ||||
Net realized gain (loss) | (866,963 | ) | (261,608 | ) | ||||
Change in net unrealized appreciation (depreciation) | 577,010 | (3,927,613 | ) | |||||
Net increase in net assets resulting from operations | 1,712,060 | 1,317,113 | ||||||
Distributions to shareholders from distributable earnings(1): | ||||||||
Class A | (2,186,769 | ) | (4,179,503 | ) | ||||
Class B | – | (5,238 | ) | |||||
Class C | (140,092 | ) | (301,057 | ) | ||||
Class Y | (166,977 | ) | (274,889 | ) | ||||
Class R6 | (23,081 | ) | (26,987 | ) | ||||
Total distributions to shareholders from distributable earnings | (2,516,919 | ) | (4,787,674 | ) | ||||
Sharetransactions-net: | ||||||||
Class A | 2,077,377 | (1,690,730 | ) | |||||
Class B | – | (409,496 | ) | |||||
Class C | (3,211,665 | ) | (1,039,714 | ) | ||||
Class Y | 3,043,346 | (98,829 | ) | |||||
Class R6 | 2,401 | 1,054,603 | ||||||
Net increase (decrease) in net assets resulting from share transactions | 1,911,459 | (2,184,166 | ) | |||||
Net increase (decrease) in net assets | 1,106,600 | (5,654,727 | ) | |||||
Net assets: | ||||||||
Beginning of period | 124,323,569 | 129,978,296 | ||||||
End of period | $ | 125,430,169 | $ | 124,323,569 |
(1) | The Securities and Exchange Commission eliminated the requirement to disclose distribution components separately, except for tax return of capital. For the year ended August 31, 2018, distributions to shareholders from distributable earnings consisted of distributions from net investment income. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 | Invesco Pennsylvania Tax Free Income Fund |
Statement of Cash Flows
For the six month ended February 28, 2019
(Unaudited)
Cash provided by operating activities: | ||||
Net increase in net assets resulting from operations | $ | 1,712,060 | ||
Adjustments to reconcile the change in net assets from operations to net cash provided by operating activities: |
| |||
Purchases of investments | (6,823,930 | ) | ||
Proceeds from sales of investments | 8,448,921 | |||
Purchases of short-term investments, net | (3,145,000 | ) | ||
Amortization of premium on investment securities | 493,370 | |||
Accretion of discount on investment securities | (5,668 | ) | ||
Decrease in receivables and other assets | 49,894 | |||
Increase in accrued expenses and other payables | 49,782 | |||
Net realized loss from investment securities | 866,963 | |||
Net change in unrealized appreciation on investment securities | (577,010 | ) | ||
Net cash provided by operating activities | 1,069,382 | |||
Cash provided by (used in) financing activities: | ||||
Dividends paid to shareholders from distributable earnings | (826,693 | ) | ||
Increase in payable for amount due custodian | 554,234 | |||
Proceeds from shares of beneficial interest sold | 15,686,266 | |||
Proceeds of TOB Trusts | 10,000 | |||
Disbursements from shares of beneficial interest reacquired | (16,559,607 | ) | ||
Net cash provided by (used in) financing activities | (1,135,800 | ) | ||
Net decrease in cash and cash equivalents | (66,418 | ) | ||
Cash and cash equivalents at beginning of period | 66,418 | |||
Cash and cash equivalents at end of period | $ | – | ||
Non-cash financing activities: | ||||
Value of shares of beneficial interest issued in reinvestment of dividends paid to shareholders | $ | 1,660,660 | ||
Supplemental disclosure of cash flow information: |
| |||
Cash paid during the period for interest, facilities and maintenance fees | $ | 240,327 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 | Invesco Pennsylvania Tax Free Income Fund |
Notes to Financial Statements
February 28, 2019
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco 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 anopen-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to provide only Pennsylvania investors with a high level of current income exempt from federal and Pennsylvania state income taxes and, where possible under local law, local income and personal property taxes, through investment in a varied portfolio of medium-and lower-grade municipal securities.
The Fund currently consists of four different classes of shares: Class A, Class C, Class Y and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with afront-end sales charge unless certain waiver criteria are met. 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 Class R6 shares are sold at net asset value.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946,Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations- Securities, including restricted securities, are valued according to the following policy. |
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 asinstitution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Securities for which market quotations either are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. 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.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
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 (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities.Pay-in-kind interest income andnon-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on theex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates 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, |
15 | Invesco Pennsylvania Tax Free Income Fund |
the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D. | Distributions- Distributions from net investment income, if any, are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on theex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | 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. |
F. | Federal Income Taxes- The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable andtax-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. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
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.
G. | Expenses- Fees provided for under the Rule12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R6 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. |
H. | 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. |
I. | 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 theperiod-end date and before the date the financial statements are released to print. |
J. | Indemnifications- Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Fund is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
K. | Floating Rate Note Obligations- The Fund invests in inverse floating rate securities, such as Tender Option Bonds (“TOBs”), for investment purposes and to enhance the yield of the Fund. Such securities may be purchased in the secondary market without first owning an underlying bond but generally are created through the sale of fixed rate bonds by the Fund to special purpose trusts established by a broker dealer or by the Fund (“TOB Trusts”) in exchange for cash and residual interests in the TOB Trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The TOB Trusts finance the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Fund to retain residual interests in the bonds. The floating rate notes issued by the TOB Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the TOB Trusts for redemption at par at each reset date. The residual interests held by the Fund (inverse floating rate securities) 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 TOB Trust to the Fund, thereby collapsing the TOB Trust. Inverse floating rate securities 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. |
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 decreases in the value of such securities in response to changes in interest rates to a greater extent than fixed rate securities 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 notes created by the TOB Trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such notes for repayment of principal, may not be able to be remarketed to third parties. In such cases, the TOB Trust holding the fixed rate bonds may be collapsed with the entity that contributed the fixed rate bonds to the TOB Trust. In the case where a TOB Trust is collapsed with the Fund, the Fund will be required to repay the principal amount of the tendered securities, which may require the Fund to sell other portfolio holdings to raise cash to meet that obligation. The Fund could therefore be required to sell other portfolio holdings at a disadvantageous time or price to raise cash to meet this obligation, which risk will be heightened during times of market volatility, illiquidity or uncertainty. The embedded leverage in the TOB Trust could cause the Fund to lose more money than the value of the asset it has contributed to the TOB Trust and greater levels of leverage create the potential for greater losses. In addition, a Fund may enter into reimbursement agreements with the liquidity provider of certain TOB transactions in connection with certain residuals held by the Fund. These agreements commit a Fund to reimburse the liquidity provider to the extent that the liquidity provider must provide cash to a TOB Trust, including following the termination of a TOB Trust resulting from a mandatory tender event (“liquidity shortfall”). The reimbursement agreement will effectively make the Fund liable for
16 | Invesco Pennsylvania Tax Free Income Fund |
the amount of the negative difference, if any, between the liquidation value of the underlying security and the purchase price of the floating rate notes issued by the TOB Trust.
The Fund accounts for the transfer of fixed rate bonds to the TOB 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 captionFloating rate note obligationson the Statement of Assets and Liabilities. The carrying amount of the Fund’s floating rate note obligations as reported on the Statement of Assets and Liabilities approximates its fair value. 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 TOB Trusts as a component ofInterest, facilities and maintenance feeson the Statement of Operations.
Final rules implementing section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Volcker Rule”) prohibit banking entities from engaging in proprietary trading of certain instruments and limit such entities’ investments in, and relationships with, “covered funds”, as defined in the rules. These rules preclude banking entities and their affiliates from sponsoring and/or providing services for existing TOB Trusts. A new TOB structure is being utilized by the Fund wherein the Fund, as holder of the residuals, will perform certain duties previously performed by banking entities as “sponsors” of TOB Trusts. These duties may be performed by a third-party service provider. The Fund’s expanded role under the new TOB structure may increase its operational and regulatory risk. The new structure is substantially similar to the previous structure; however, pursuant to the Volcker Rule, the remarketing agent would not be able to repurchase tendered floaters for its own account upon a failed remarketing. In the event of a failed remarketing, a banking entity serving as liquidity provider may loan the necessary funds to the TOB Trust to purchase the tendered floaters. The TOB Trust, not the Fund, would be the borrower and the loan from the liquidity provider will be secured by the purchased floaters now held by the TOB Trust. However, as previously described, the Fund would bear the risk of loss with respect to any liquidity shortfall to the extent it entered into a reimbursement agreement with the liquidity provider.
Further, the SEC and various banking agencies have adopted rules implementing credit risk retention requirements for asset-backed securities (the “Risk Retention Rules”). The Risk Retention Rules require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s municipal bonds. The Fund has adopted policies intended to comply with the Risk Retention Rules. The Risk Retention Rules may adversely affect the Fund’s ability to engage in TOB Trust transactions or increase the costs of such transactions in certain circumstances.
There can be no assurances that the new TOB structure will continue to be a viable form of leverage. Further, there can be no assurances that alternative forms of leverage will be available to the Fund in order to maintain current levels of leverage. Any alternative forms of leverage may be less advantageous to the Fund, and may adversely affect the Fund’s net asset value, distribution rate and ability to achieve its investment objective.
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 (the “1933 Act”), 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 atypical, 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.
L. | 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 the Fund’s investments in municipal securities.
There is some risk that a portion or all of the interest received from certaintax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
First $ 500 million | 0.50% | |||
Over $500 million | 0.40% |
For the six months ended February 28, 2019, the effective advisory fees incurred by the Fund was 0.50%.
Under the terms of a mastersub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separatesub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “AffiliatedSub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such AffiliatedSub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such AffiliatedSub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2019, 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 C, Class Y and Class R6 shares to 1.50%, 2.25%, 1.25% and 1.25%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause 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 ornon-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2019. During its term, the fee waiver agreement cannot be terminated or amended to increase the
17 | Invesco Pennsylvania Tax Free Income Fund |
expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limit.
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 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into asub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and 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 Trust has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Trust 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 orsub-accounting services are charged back to the Trust, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer agent fees.
Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A 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% of Class C average daily net assets. The fees are accrued daily and paid monthly.
With respect to 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 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 28, 2019, expenses incurred under these agreements are shown in the Statement of Operations asDistribution 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 28, 2019, IDI advised the Fund that IDI retained $5,797 infront-end sales commissions from the sale of Class A shares and $243 and $0 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.
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. |
As of February 28, 2019, all of the securities in this Fund were valued based on Level 2 inputs (see the Schedule of Investments for security categories). 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.
NOTE 4–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $295.
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, andTrustees’ andOfficers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan.Trustees’ andOfficers’ Fees and Benefits include
18 | Invesco Pennsylvania Tax Free Income Fund |
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.
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, andTrustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan.Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 6–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any atperiod-end, are shown in the Statement of Assets and Liabilities under the payable captionAmount 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 TOB Trusts are accounted for as secured borrowings. The average floating rate notes outstanding and average annual interest and fee rate related to inverse floating rate note obligations during the six months ended February 28, 2019 were $15,220,000 and 3.18%, respectively.
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 GAAP. 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 fiscalyear-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. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2018, as follows:
Capital Loss Carryforward* | ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
Not subject to expiration | $1,107,357 | $3,221,028 | $4,328,385 |
* | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 8–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2019 was $6,110,275 and $7,588,921, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reportingperiod-end.
Unrealized Appreciation (Depreciation) of Investments on a TaxBasis | ||||
Aggregate unrealized appreciation of investments | $5,575,398 | |||
Aggregate unrealized (depreciation) of investments | (533,877 | ) | ||
Net unrealized appreciation of investments | $5,041,521 |
Cost of investments for tax purposes is $133,475,866.
19 | Invesco Pennsylvania Tax Free Income Fund |
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||||
Six months ended February 28, 2019(a) | Year ended August 31, 2018 | |||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||
Sold: | ||||||||||||||||||
Class A | 756,079 | $ | 11,995,820 | 698,917 | $ | 11,354,722 | ||||||||||||
Class C | 60,288 | 956,797 | 66,944 | 1,090,000 | ||||||||||||||
Class Y | 232,121 | 3,685,444 | 172,232 | 2,804,028 | ||||||||||||||
Class R6(b) | 6,994 | 111,069 | 70,642 | 1,151,862 | ||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||||
Class A | 91,948 | 1,458,116 | 177,597 | 2,871,169 | ||||||||||||||
Class B(c) | – | – | 86 | 1,400 | ||||||||||||||
Class C | 5,952 | 94,452 | 12,768 | 206,632 | ||||||||||||||
Class Y | 5,425 | 86,197 | 8,344 | 134,919 | ||||||||||||||
Class R6 | 1,379 | 21,895 | 1,614 | 26,000 | ||||||||||||||
Conversion of Class B shares to Class A shares:(d) | ||||||||||||||||||
Class A | – | – | 19,569 | 318,589 | ||||||||||||||
Class B | – | – | (19,522 | ) | (318,589 | ) | ||||||||||||
Reacquired: | ||||||||||||||||||
Class A | (717,845 | ) | (11,376,559 | ) | (1,000,930 | ) | (16,235,210 | ) | ||||||||||
Class B(c) | – | – | (5,629 | ) | (92,307 | ) | ||||||||||||
Class C | (268,275 | ) | (4,262,914 | ) | (144,200 | ) | (2,336,346 | ) | ||||||||||
Class Y | (45,952 | ) | (728,295 | ) | (186,742 | ) | (3,037,776 | ) | ||||||||||
Class R6 | (8,240 | ) | (130,563 | ) | (7,642 | ) | (123,259 | ) | ||||||||||
Net increase (decrease) in share activity | 119,874 | $ | 1,911,459 | (135,952 | ) | $ | (2,184,166 | ) |
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 51% 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) | Commencement date of April 4, 2017. |
(c) | Class B shares activity for the period September 1, 2017 through January 26, 2018 (date of conversion). |
(d) | Effective as of the close of business January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
NOTE 10–Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of to average net assets without fee waivers and/or expenses absorbed | Supplemental ratio of expenses to average net assets with fee waivers (excluding interest, facilities and maintenance fees) | Ratio of net investment income to average net assets | Portfolio turnover (c) | ||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $16.04 | $0.26 | $(0.03) | $0.23 | $(0.33) | $15.94 | 1.45% | $109,019 | 1.43%(d) | 1.43%(d) | 1.03%(d) | 3.33%(d) | 5% | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 16.49 | 0.71(d) | (0.54)(d) | 0.17 | (0.62) | 16.04 | 1.05 | 107,640 | 1.36 | 1.36 | 1.05 | 4.37(e) | 17 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 17.01 | 0.57 | (0.55) | 0.02 | (0.54) | 16.49 | 0.18 | 112,324 | 1.19 | 1.19 | 1.04 | 3.50 | 22 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 16.44 | 0.57 | 0.60 | 1.17 | (0.60) | 17.01 | 7.21 | 118,906 | 1.08 | 1.08 | 1.02 | 3.41 | 12 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 16.50 | 0.59 | (0.09) | 0.50 | (0.56) | 16.44 | 3.09 | 112,409 | 1.12 | 1.12 | 1.09 | 3.59 | 13 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 15.39 | 0.62 | 1.09 | 1.71 | (0.60) | 16.50 | 11.33 | 113,872 | 1.09 | 1.09 | 1.07 | 3.93 | 10 | |||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 16.06 | 0.20 | (0.03) | 0.17 | (0.27) | 15.96 | 1.07 | 5,731 | 2.18(d) | 2.18(d) | 1.78(d) | 2.58(d) | 5 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 16.50 | 0.59(d) | (0.53)(d) | 0.06 | (0.50) | 16.06 | 0.36 | 9,013 | 2.11 | 2.11 | 1.80 | 3.62(e) | 17 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 17.03 | 0.45 | (0.56) | (0.11 | ) | (0.42) | 16.50 | (0.63) | 10,325 | 1.94 | 1.94 | 1.79 | 2.75 | 22 | ||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 16.46 | 0.44 | 0.60 | 1.04 | (0.47) | 17.03 | 6.42 | 11,406 | 1.83 | 1.83 | 1.77 | 2.66 | 12 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 16.53 | 0.47 | (0.09) | 0.38 | (0.45) | 16.46 | 2.33 | 9,488 | 1.87 | 1.87 | 1.84 | 2.84 | 13 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 15.41 | 0.51 | 1.09 | 1.60 | (0.48) | 16.53 | 10.56(f) | 9,804 | 1.81(f) | 1.81(f) | 1.79(f) | 3.21(f) | 10 |
20 | Invesco Pennsylvania Tax Free Income Fund |
Net asset value, beginning of period | Net investment income(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of to average net assets without fee waivers and/or expenses absorbed | Supplemental ratio of expenses to average net assets with fee waivers (excluding interest, facilities and maintenance fees) | Ratio of net investment income to average net assets | Portfolio turnover (c) | ||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $16.06 | $0.28 | $(0.03 | ) | $ 0.25 | $(0.35 | ) | $15.96 | 1.58% | $ 9,637 | 1.18%(d) | 1.18%(d) | 0.78%(d) | 3.58%(d) | 5% | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 16.50 | 0.75 | (0.53 | ) | 0.22 | (0.66 | ) | 16.06 | 1.37 | 6,622 | 1.11 | 1.11 | 0.80 | 4.62(e) | 17 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 17.02 | 0.61 | (0.55 | ) | 0.06 | (0.58 | ) | 16.50 | 0.44 | 6,905 | 0.94 | 0.94 | 0.79 | 3.75 | 22 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 16.46 | 0.61 | 0.59 | 1.20 | (0.64 | ) | 17.02 | 7.41 | 4,351 | 0.83 | 0.83 | 0.77 | 3.66 | 12 | ||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 16.51 | 0.64 | (0.08 | ) | 0.56 | (0.61 | ) | 16.46 | 3.41 | 3,323 | 0.87 | 0.87 | 0.84 | 3.84 | 13 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 15.40 | 0.66 | 1.09 | 1.75 | (0.64 | ) | 16.51 | 11.60 | 2,713 | 0.84 | 0.84 | 0.82 | 4.18 | 10 | ||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 16.06 | 0.29 | (0.04 | ) | 0.25 | (0.35 | ) | 15.96 | 1.62 | 1,043 | 1.10(d) | 1.10(d) | 0.70(d) | 3.66(d) | 5 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 16.50 | 0.75 | (0.53 | ) | 0.22 | (0.66 | ) | 16.06 | 1.38 | 1,048 | 1.07 | 1.07 | 0.76 | 4.66(e) | 17 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/17(g) | 16.23 | 0.26 | 0.25 | 0.51 | (0.24 | ) | 16.50 | 3.15 | 10 | 0.93(h) | 0.93(h) | 0.78(h) | 3.76(h) | 22 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $105,578, $8,310, $7,588 and $1,033 for Class A, Class C, Class Y and Class R6 shares, respectively. |
(e) | Amount includes the effect of aone-time reclassification of prior year earnings. Excluding this reclassification, net investment income per share, net gains (losses) on securities and ratio of net investment income to average net assets would have been $0.57, $(0.40) and 3.48%; $0.45, $(0.39) and 2.73%; $0.61, $(0.39) and 3.73%; and $0.61, $(0.39) and 3.77% for Class A, Class C, Class Y and Class R6, respectively. |
(f) | The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual12b-1 fees of 0.97% for the year ended August 31, 2014. |
(g) | Commencement date of April 4, 2017. |
(h) | Annualized. |
21 | Invesco 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, 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, 2018 through February 28, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Beginning Account Value (09/01/18) | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Expense Ratio | |||||||||||||||||||||||||||
Ending Account Value (02/28/19)1 | Expenses Period2 | Ending Account Value (02/28/19) | Expenses Paid During | |||||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,014.50 | $ | 7.14 | $ | 1,017.70 | $ | 7.15 | 1.43 | % | ||||||||||||||||||
Class C | 1,000.00 | 1,010.70 | 10.87 | 1,013.98 | 10.89 | 2.18 | ||||||||||||||||||||||||
Class Y | 1,000.00 | 1,015.80 | 5.90 | 1,018.94 | 5.91 | 1.18 | ||||||||||||||||||||||||
Class R6 | 1,000.00 | 1,016.20 | 5.50 | 1,019.34 | 5.51 | 1.10 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2018 through February 28, 2019, 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 181/365 to reflect the most recent fiscal half year. |
22 | Invesco Pennsylvania Tax Free Income Fund |
Explore High-Conviction Investing with Invesco
Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
∎ | Fund reports and prospectuses |
∎ | Quarterly statements |
∎ | Daily confirmations |
∎ | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information | ||
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on FormN-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s FormsN-Q (or any successor Form) on the SEC website at sec.gov. The SEC file numbers for the Fund are shown below. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov. | ||
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov. Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd. | ![]() |
SEC file numbers: 811-09913 and 333-36074 | Invesco Distributors, Inc. | VK-PTFI-SAR-1 | 04222019 | 0803 |
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![]() |
Semiannual Report to Shareholders
|
February 28, 2019 | ||
| ||||
Invesco S&P 500 Index Fund
Nasdaq: A: SPIAX∎ C: SPICX∎ Y: SPIDX∎ R6: SPISX |
| ||
2 | Fund Performance | |
4 | Letters to Shareholders | |
5 | Schedule of Investments | |
14 | Financial Statements | |
17 | Notes to Financial Statements | |
23 | Financial Highlights | |
24 | Fund Expenses |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800 959 4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most currentmonth-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, 8/31/18 to 2/28/19, at net asset value (NAV). Performance showndoes not include applicable contingent deferred sales charges (CDSC) orfront-end salescharges, which would have reduced performance. |
| |||
Class A Shares | -3.31 | % | ||
Class C Shares | -3.65 | |||
Class Y Shares | -3.18 | |||
Class R6 Shares | -3.15 | |||
S&P 500 Index▼ (Broad Market/Style-Specific Index) | -3.04 | |||
Lipper S&P 500 Objective Funds Index∎ (Peer Group Index) | -3.17 | |||
Source(s):▼FactSet Research Systems Inc.;∎Lipper Inc. | ||||
TheS&P 500®Indexis an unmanaged index considered representative of the US stock market. |
| |||
TheLipper S&P 500 Objective Funds Indexis 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.
|
|
For more information about your Fund Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends. |
2 | Invesco S&P 500 Index Fund |
Average Annual Total Returns |
| |||
As of 2/28/19, including maximum applicable sales charges | ||||
Class A Shares | ||||
Inception (9/26/97) | 6.28 | % | ||
10 Years | 15.40 | |||
5 Years | 8.80 | |||
1 Year | -1.63 | |||
Class C Shares* | ||||
Inception (9/26/97) | 6.18 | % | ||
10 Years | 15.20 | |||
5 Years | 9.22 | |||
1 Year | 2.30 | |||
Class Y Shares | ||||
Inception (9/26/97) | 6.81 | % | ||
10 Years | 16.34 | |||
5 Years | 10.31 | |||
1 Year | 4.34 | |||
Class R6 Shares | ||||
10 Years | 16.12 | % | ||
5 Years | 10.17 | |||
1 Year | 4.41 | |||
* Effective January 26, 2019, Class C share performance includes the conversion to A shares after 10 years. |
|
Effective June 1, 2010, Class A, 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 C and Class Y shares, respectively, of Invesco S&P 500 Index Fund. Returns shown above, prior to June 1, 2010, for Class A, 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.
Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares and includes the12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recentmonth-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated.
Average Annual Total Returns |
| |||
As of 12/31/18, the most recent calendar quarter end, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (9/26/97) | 5.79 | % | ||
10 Years | 11.88 | |||
5 Years | 6.66 | |||
1 Year | -10.15 | |||
Class C Shares | ||||
Inception (9/26/97) | 5.28 | % | ||
10 Years | 11.68 | |||
5 Years | 7.08 | |||
1 Year | -6.57 | |||
Class Y Shares | ||||
Inception (9/26/97) | 6.33 | % | ||
10 Years | 12.79 | |||
5 Years | 8.14 | |||
1 Year | -4.70 | |||
Class R6 Shares | ||||
10 Years | 12.57 | % | ||
5 Years | 7.99 | |||
1 Year | -4.67 |
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 Y and Class R6 shares was 0.57%, 1.29%, 0.32% and 0.29%, 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 C shares is 1% for the first year after purchase. Class Y and Class R6 shares do not have afront-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 | Invesco S&P 500 Index Fund |
Letters to Shareholders
Bruce Crockett | Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time; monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory andsub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper, Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. |
Sincerely, Bruce L. Crockett Independent Chair Invesco Funds Board of Trustees |
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward. Our website,invesco.com/us, offers a wide range of market insights and investment perspectives. | |
On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246. All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely, Andrew Schlossberg Head of the Americas, Senior Managing Director, Invesco Ltd. |
4 | Invesco S&P 500 Index Fund |
Schedule of Investments(a)
February 28, 2019
(Unaudited)
Shares | Value | |||||||
Common Stocks & Other Equity Interests-96.66% |
| |||||||
Advertising-0.11% | ||||||||
Interpublic Group of Cos., Inc. (The) | 20,794 | $ | 478,886 | |||||
Omnicom Group, Inc. | 12,168 | 921,117 | ||||||
1,400,003 | ||||||||
Aerospace & Defense-2.68% | ||||||||
Arconic, Inc. | 23,269 | 430,244 | ||||||
Boeing Co. (The) | 28,573 | 12,570,977 | ||||||
General Dynamics Corp. | 15,061 | 2,563,684 | ||||||
Harris Corp. | 6,370 | 1,050,604 | ||||||
Huntington Ingalls Industries, Inc. | 2,330 | 487,925 | ||||||
L3 Technologies, Inc. | 4,263 | 902,690 | ||||||
Lockheed Martin Corp. | 13,387 | 4,142,072 | ||||||
Northrop Grumman Corp. | 9,393 | 2,723,594 | ||||||
Raytheon Co. | 15,396 | 2,871,354 | ||||||
Textron, Inc. | 13,144 | 713,719 | ||||||
TransDigm Group, Inc.(b) | 2,625 | 1,139,486 | ||||||
United Technologies Corp. | 43,909 | 5,518,044 | ||||||
35,114,393 | ||||||||
Agricultural & Farm Machinery-0.22% |
| |||||||
Deere & Co. | 17,403 | 2,854,788 | ||||||
Agricultural Products-0.10% | ||||||||
Archer-Daniels-Midland Co. | 30,332 | 1,289,110 | ||||||
Air Freight & Logistics-0.60% | ||||||||
C.H. Robinson Worldwide, Inc. | 7,452 | 673,512 | ||||||
Expeditors International of Washington, Inc. | 9,377 | 702,806 | ||||||
FedEx Corp. | 13,135 | 2,377,435 | ||||||
United Parcel Service, Inc., Class B | 37,613 | 4,144,953 | ||||||
7,898,706 | ||||||||
Airlines-0.42% | ||||||||
Alaska Air Group, Inc. | 6,623 | 408,639 | ||||||
American Airlines Group, Inc. | 22,177 | 790,167 | ||||||
Delta Air Lines, Inc. | 33,740 | 1,672,829 | ||||||
Southwest Airlines Co. | 27,380 | 1,534,375 | ||||||
United Continental Holdings, Inc.(b) | 12,416 | 1,090,249 | ||||||
5,496,259 | ||||||||
Alternative Carriers-0.05% | ||||||||
CenturyLink, Inc. | 51,452 | 678,652 | ||||||
Apparel Retail-0.48% | ||||||||
Foot Locker, Inc. | 6,188 | 368,310 | ||||||
Gap, Inc. (The) | 11,556 | 293,522 | ||||||
L Brands, Inc. | 12,380 | 323,613 | ||||||
Ross Stores, Inc. | 20,153 | 1,911,109 |
Shares | Value | |||||||
Apparel Retail-(continued) | ||||||||
TJX Cos., Inc. (The) | 66,955 | $ | 3,434,122 | |||||
6,330,676 | ||||||||
Apparel, Accessories & Luxury Goods-0.31% |
| |||||||
Capri Holdings Ltd.(b) | 8,131 | 370,774 | ||||||
Hanesbrands, Inc. | 19,516 | 362,802 | ||||||
PVH Corp. | 4,126 | 473,830 | ||||||
Ralph Lauren Corp. | 2,971 | 371,880 | ||||||
Tapestry, Inc. | 15,678 | 547,789 | ||||||
Under Armour, Inc., Series A(b) | 10,150 | 228,883 | ||||||
Under Armour, Inc., Series C(b) | 10,407 | 208,973 | ||||||
VF Corp. | 17,604 | 1,537,885 | ||||||
4,102,816 | ||||||||
Application Software-1.71% | ||||||||
Adobe Systems, Inc.(b) | 26,409 | 6,932,362 | ||||||
ANSYS, Inc.(b) | 4,534 | 803,697 | ||||||
Assurant, Inc.(b) | 15,311 | 876,555 | ||||||
Autodesk, Inc.(b) | 11,849 | 1,931,505 | ||||||
Citrix Systems, Inc. | 6,932 | 731,326 | ||||||
Intuit, Inc. | 14,041 | 3,469,952 | ||||||
salesforce.com, inc.(b) | 41,389 | 6,773,310 | ||||||
Synopsys, Inc.(b) | 8,092 | 822,795 | ||||||
22,341,502 | ||||||||
Asset Management & Custody Banks-0.89% |
| |||||||
Affiliated Managers Group, Inc. | 2,889 | 316,663 | ||||||
Ameriprise Financial, Inc. | 7,530 | 991,174 | ||||||
Bank of New York Mellon Corp. (The) | 49,216 | 2,582,856 | ||||||
BlackRock, Inc. | 6,570 | 2,911,955 | ||||||
Franklin Resources, Inc. | 16,100 | 525,021 | ||||||
Invesco Ltd.(c) | 22,254 | 430,615 | ||||||
Northern Trust Corp. | 12,010 | 1,119,332 | ||||||
State Street Corp. | 20,534 | 1,475,779 | ||||||
T. Rowe Price Group, Inc. | 12,980 | 1,303,581 | ||||||
11,656,976 | ||||||||
Auto Parts & Equipment-0.13% | ||||||||
Aptiv PLC | 14,239 | 1,183,403 | ||||||
BorgWarner, Inc. | 11,234 | 456,213 | ||||||
1,639,616 | ||||||||
Automobile Manufacturers-0.36% | ||||||||
Ford Motor Co. | 211,388 | 1,853,873 | ||||||
General Motors Co. | 71,017 | 2,803,751 | ||||||
4,657,624 | ||||||||
Automotive Retail-0.31% | ||||||||
Advance Auto Parts, Inc. | 3,934 | 636,442 | ||||||
AutoZone, Inc.(b) | 1,364 | 1,280,755 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco S&P 500 Index Fund |
Shares | Value | |||||||
Automotive Retail-(continued) | ||||||||
CarMax, Inc.(b) | 9,497 | $ | 589,764 | |||||
O’Reilly Automotive, Inc.(b) | 4,333 | 1,611,703 | ||||||
4,118,664 | ||||||||
Biotechnology-2.38% | ||||||||
AbbVie, Inc. | 81,352 | 6,446,332 | ||||||
Alexion Pharmaceuticals, Inc.(b) | 12,087 | 1,635,734 | ||||||
Amgen, Inc. | 34,475 | 6,553,008 | ||||||
Biogen, Inc.(b) | 10,900 | 3,575,309 | ||||||
Celgene Corp.(b) | 37,833 | 3,144,679 | ||||||
Gilead Sciences, Inc. | 69,990 | 4,550,750 | ||||||
Incyte Corp.(b) | 9,590 | 826,946 | ||||||
Regeneron Pharmaceuticals, Inc.(b) | 4,199 | 1,808,677 | ||||||
Vertex Pharmaceuticals, Inc.(b) | 13,826 | 2,609,657 | ||||||
31,151,092 | ||||||||
Brewers-0.05% | ||||||||
Molson Coors Brewing Co., Class B | 10,167 | 626,897 | ||||||
Broadcasting-0.13% | ||||||||
CBS Corp., Class B | 18,208 | 914,224 | ||||||
Discovery, Inc., Class A(b) | 8,504 | 245,766 | ||||||
Discovery, Inc., Class C(b) | 19,490 | 531,102 | ||||||
1,691,092 | ||||||||
Building Products-0.28% | ||||||||
A.O. Smith Corp. | 7,774 | 403,704 | ||||||
Allegion PLC | 5,110 | 459,696 | ||||||
Fortune Brands Home & Security, Inc. | 7,660 | 360,939 | ||||||
Johnson Controls International PLC | 49,994 | 1,763,288 | ||||||
Masco Corp. | 16,538 | 621,167 | ||||||
3,608,794 | ||||||||
Cable & Satellite-1.01% | ||||||||
Charter Communications, Inc., | 9,536 | 3,289,062 | ||||||
Comcast Corp., Class A | 245,636 | 9,498,744 | ||||||
DISH Network Corp., Class A(b) | 12,421 | 403,807 | ||||||
13,191,613 | ||||||||
Casinos & Gaming-0.11% | ||||||||
MGM Resorts International | 27,096 | 724,818 | ||||||
Wynn Resorts Ltd. | 5,259 | 665,474 | ||||||
1,390,292 | ||||||||
Commodity Chemicals-0.11% | ||||||||
Lyondell Chemical Co., Class A | 17,020 | 1,455,550 | ||||||
Communications Equipment-1.20% | ||||||||
Arista Networks, Inc.(b) | 2,827 | 806,402 | ||||||
Cisco Systems, Inc. | 243,250 | 12,593,052 | ||||||
F5 Networks, Inc.(b) | 3,271 | 549,986 | ||||||
Juniper Networks, Inc. | 18,673 | 505,665 | ||||||
Motorola Solutions, Inc. | 8,847 | 1,266,183 | ||||||
15,721,288 |
Shares | Value | |||||||
Computer & Electronics Retail-0.07% |
| |||||||
Best Buy Co., Inc. | 12,666 | $ | 871,927 | |||||
Construction & Engineering-0.08% | ||||||||
Fluor Corp. | 7,563 | 284,369 | ||||||
Jacobs Engineering Group, Inc. | 6,511 | 480,381 | ||||||
Quanta Services, Inc. | 7,900 | 281,556 | ||||||
1,046,306 | ||||||||
Construction Machinery & Heavy Trucks-0.57% |
| |||||||
Caterpillar, Inc. | 31,918 | 4,383,618 | ||||||
Cummins, Inc. | 7,991 | 1,231,333 | ||||||
PACCAR, Inc. | 18,955 | 1,285,149 | ||||||
Wabtec Corp. | 7,226 | 529,349 | ||||||
7,429,449 | ||||||||
Construction Materials-0.11% | ||||||||
Martin Marietta Materials, Inc. | 3,389 | 636,454 | ||||||
Vulcan Materials Co. | 7,114 | 792,927 | ||||||
1,429,381 | ||||||||
Consumer Electronics-0.04% | ||||||||
Garmin Ltd. | 6,499 | 545,721 | ||||||
Consumer Finance-0.66% | ||||||||
American Express Co. | 37,879 | 4,081,084 | ||||||
Capital One Financial Corp. | 25,626 | 2,141,821 | ||||||
Discover Financial Services | 18,176 | 1,301,583 | ||||||
Synchrony Financial | 35,774 | 1,166,590 | ||||||
8,691,078 | ||||||||
Copper-0.08% | ||||||||
Freeport-McMoRan, Inc. | 78,398 | 1,011,334 | ||||||
Data Processing & Outsourced Services-3.46% |
| |||||||
Alliance Data Systems Corp. | 2,541 | 439,593 | ||||||
Automatic Data Processing, Inc. | 23,682 | 3,624,057 | ||||||
Broadridge Financial Solutions, Inc. | 6,356 | 643,545 | ||||||
Fidelity National Information Services, Inc. | 17,686 | 1,912,741 | ||||||
Fiserv, Inc.(b) | 21,558 | 1,825,747 | ||||||
FleetCor Technologies, Inc.(b) | 4,804 | 1,120,677 | ||||||
Global Payments, Inc. | 8,608 | 1,122,311 | ||||||
Jack Henry & Associates, Inc. | 4,151 | 550,547 | ||||||
Mastercard, Inc., Class A | 49,159 | 11,049,468 | ||||||
Paychex, Inc. | 17,319 | 1,333,909 | ||||||
PayPal Holdings, Inc.(b) | 63,771 | 6,254,022 | ||||||
Total System Services, Inc. | 9,127 | 861,589 | ||||||
Visa, Inc., Class A | 95,073 | 14,082,213 | ||||||
Western Union Co. (The) | 23,957 | 428,112 | ||||||
45,248,531 | ||||||||
Department Stores-0.10% | ||||||||
Kohl’s Corp. | 8,967 | 605,542 | ||||||
Macy’s, Inc. | 16,634 | 412,357 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco S&P 500 Index Fund |
Shares | Value | |||||||
Department Stores-(continued) | ||||||||
Nordstrom, Inc. | 6,165 | $ | 291,481 | |||||
1,309,380 | ||||||||
Distillers & Vintners-0.15% | ||||||||
Brown-Forman Corp., Class B | 8,965 | 443,678 | ||||||
Constellation Brands, Inc., Class A | 8,979 | 1,518,888 | ||||||
1,962,566 | ||||||||
Distributors-0.10% | ||||||||
Genuine Parts Co. | 7,893 | 858,601 | ||||||
LKQ Corp.(b) | 17,215 | 476,855 | ||||||
1,335,456 | ||||||||
Diversified Banks-4.38% | ||||||||
Bank of America Corp. | 493,820 | 14,360,286 | ||||||
Citigroup Inc. | 132,129 | 8,453,613 | ||||||
JPMorgan Chase & Co. | 179,918 | 18,776,242 | ||||||
U.S. Bancorp | 82,190 | 4,248,401 | ||||||
Wells Fargo & Co. | 229,213 | 11,435,437 | ||||||
57,273,979 | ||||||||
Diversified Chemicals-0.55% | ||||||||
DowDuPont, Inc. | 124,114 | 6,606,588 | ||||||
Eastman Chemical Co. | 7,599 | 628,362 | ||||||
7,234,950 | ||||||||
Diversified Support Services-0.12% |
| |||||||
Cintas Corp. | 4,684 | 967,714 | ||||||
Copart, Inc.(b) | 11,141 | 653,643 | ||||||
1,621,357 | ||||||||
Drug Retail-0.24% | ||||||||
Walgreens Boots Alliance, Inc. | 43,494 | 3,096,338 | ||||||
Electric Utilities-1.89% | ||||||||
Alliant Energy Corp. | 12,764 | 585,485 | ||||||
American Electric Power Co., Inc. | 26,678 | 2,164,920 | ||||||
Duke Energy Corp. | 38,569 | 3,458,096 | ||||||
Edison International | 17,627 | 1,055,681 | ||||||
Entergy Corp. | 9,827 | 917,154 | ||||||
Evergy, Inc. | 14,253 | 796,885 | ||||||
Eversource Energy | 17,144 | 1,196,823 | ||||||
Exelon Corp. | 52,319 | 2,542,180 | ||||||
FirstEnergy Corp. | 26,287 | 1,071,195 | ||||||
NextEra Energy, Inc. | 25,858 | 4,854,064 | ||||||
Pinnacle West Capital Corp. | 6,022 | 564,502 | ||||||
PPL Corp. | 38,965 | 1,253,504 | ||||||
Southern Co. (The) | 55,667 | 2,766,093 | ||||||
Xcel Energy, Inc. | 27,810 | 1,525,657 | ||||||
24,752,239 | ||||||||
Electrical Components & Equipment-0.48% |
| |||||||
AMETEK, Inc. | 12,573 | 1,000,559 | ||||||
Eaton Corp. PLC | 23,448 | 1,870,447 | ||||||
Emerson Electric Co. | 33,905 | 2,310,626 |
Shares | Value | |||||||
Electrical Components & Equipment-(continued) |
| |||||||
Rockwell Automation, Inc. | 6,529 | $ | 1,165,818 | |||||
6,347,450 | ||||||||
Electronic Components-0.23% |
| |||||||
Amphenol Corp., Class A | 16,302 | 1,531,899 | ||||||
Corning, Inc. | 43,304 | 1,507,412 | ||||||
3,039,311 | ||||||||
Electronic Equipment & Instruments-0.09% |
| |||||||
FLIR Systems, Inc. | 7,523 | 387,059 | ||||||
Keysight Technologies, Inc.(b) | 10,181 | 859,378 | ||||||
1,246,437 | ||||||||
Electronic Manufacturing Services-0.14% |
| |||||||
IPG Photonics Corp.(b) | 1,937 | 300,293 | ||||||
TE Connectivity Ltd. | 18,559 | 1,523,508 | ||||||
1,823,801 | ||||||||
Environmental & Facilities Services-0.26% |
| |||||||
Republic Services, Inc. | 11,725 | 919,592 | ||||||
Rollins, Inc. | 7,920 | 314,107 | ||||||
Waste Management, Inc. | 21,215 | 2,148,019 | ||||||
3,381,718 | ||||||||
Fertilizers & Agricultural Chemicals-0.14% |
| |||||||
CF Industries Holdings, Inc. | 12,457 | 525,685 | ||||||
FMC Corp. | 7,241 | 648,070 | ||||||
Mosaic Co. (The) | 19,186 | 599,946 | ||||||
1,773,701 | ||||||||
Financial Exchanges & Data-0.93% |
| |||||||
Cboe Global Markets, Inc. | 6,114 | 586,394 | ||||||
CME Group, Inc., Class A | 19,356 | 3,521,050 | ||||||
Intercontinental Exchange, Inc. | 30,845 | 2,379,692 | ||||||
Moody’s Corp. | 9,030 | 1,563,274 | ||||||
MSCI, Inc. | 4,778 | 882,592 | ||||||
Nasdaq, Inc. | 6,194 | 567,184 | ||||||
S&P Global, Inc. | 13,577 | 2,720,423 | ||||||
12,220,609 | ||||||||
Food Distributors-0.13% | ||||||||
Sysco Corp. | 25,872 | 1,747,654 | ||||||
Food Retail-0.10% | ||||||||
Kroger Co. (The) | 43,174 | 1,266,293 | ||||||
Footwear-0.45% | ||||||||
NIKE, Inc., Class B | 68,877 | 5,904,825 | ||||||
Gas Utilities-0.05% | ||||||||
Atmos Energy Corp. | 6,322 | 624,930 | ||||||
General Merchandise Stores-0.38% |
| |||||||
Dollar General Corp. | 14,182 | 1,680,000 | ||||||
Dollar Tree, Inc.(b) | 12,895 | 1,242,175 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco S&P 500 Index Fund |
Shares | Value | |||||||
General Merchandise Stores-(continued) |
| |||||||
Target Corp. | 28,211 | $ | 2,049,247 | |||||
4,971,422 | ||||||||
Gold-0.07% | ||||||||
Newmont Mining Corp. | 28,818 | 983,270 | ||||||
Health Care Distributors-0.26% | ||||||||
AmerisourceBergen Corp. | 8,485 | 706,801 | ||||||
Cardinal Health, Inc. | 16,119 | 875,906 | ||||||
Henry Schein, Inc.(b) | 8,235 | 488,336 | ||||||
McKesson Corp. | 10,570 | 1,344,081 | ||||||
3,415,124 | ||||||||
Health Care Equipment-3.15% | ||||||||
Abbott Laboratories | 95,024 | 7,375,763 | ||||||
ABIOMED, Inc.(b) | 2,436 | 814,842 | ||||||
Baxter International, Inc. | 26,825 | 2,004,632 | ||||||
Becton, Dickinson and Co. | 14,513 | 3,610,689 | ||||||
Boston Scientific Corp.(b) | 74,869 | 3,003,744 | ||||||
Danaher Corp. | 33,370 | 4,238,657 | ||||||
Edwards Lifesciences Corp.(b) | 11,312 | 1,915,008 | ||||||
Hologic, Inc.(b) | 14,537 | 685,420 | ||||||
IDEXX Laboratories, Inc.(b) | 4,657 | 982,767 | ||||||
Intuitive Surgical, Inc.(b) | 6,178 | 3,383,135 | ||||||
Medtronic PLC | 72,644 | 6,574,282 | ||||||
ResMed, Inc. | 7,677 | 786,355 | ||||||
Stryker Corp. | 16,803 | 3,167,534 | ||||||
Teleflex Inc. | 2,488 | 721,122 | ||||||
Varian Medical Systems, Inc.(b) | 4,924 | 661,589 | ||||||
Zimmer Biomet Holdings, Inc. | 11,045 | 1,370,905 | ||||||
41,296,444 | ||||||||
Health Care Facilities-0.20% | ||||||||
HCA Healthcare, Inc. | 14,518 | 2,018,583 | ||||||
Universal Health Services Inc., Class B | 4,633 | 643,199 | ||||||
2,661,782 | ||||||||
Health Care REITs-0.27% | ||||||||
HCP, Inc. | 25,833 | 794,881 | ||||||
Ventas, Inc. | 19,286 | 1,210,197 | ||||||
Welltower, Inc. | 20,323 | 1,510,202 | ||||||
3,515,280 | ||||||||
Health Care Services-0.72% | ||||||||
Cigna Corp. | 20,601 | 3,593,638 | ||||||
CVS Health Corp. | 69,967 | 4,046,192 | ||||||
DaVita, Inc.(b) | 6,822 | 388,172 | ||||||
Laboratory Corp. of America | 5,481 | 812,503 | ||||||
Quest Diagnostics, Inc. | 7,351 | 636,229 | ||||||
9,476,734 | ||||||||
Health Care Supplies-0.17% | ||||||||
Align Technology, Inc.(b) | 3,931 | 1,018,011 | ||||||
Cooper Cos., Inc. (The) | 2,643 | 755,871 |
Shares | Value | |||||||
Health Care Supplies-(continued) | ||||||||
DENTSPLY SIRONA, Inc. | 12,059 | $ | 503,584 | |||||
2,277,466 | ||||||||
Health Care Technology-0.08% | ||||||||
Cerner Corp.(b) | 17,826 | 997,365 | ||||||
Home Furnishings-0.06% | ||||||||
Leggett & Platt, Inc. | 7,101 | 322,528 | ||||||
Mohawk Industries, Inc.(b) | 3,410 | 464,169 | ||||||
786,697 | ||||||||
Home Improvement Retail-1.21% | ||||||||
Home Depot, Inc. (The) | 61,112 | 11,314,275 | ||||||
Lowe’s Cos., Inc. | 43,442 | 4,565,320 | ||||||
15,879,595 | ||||||||
Homebuilding-0.14% | ||||||||
D.R. Horton, Inc. | 18,556 | 721,643 | ||||||
Lennar Corp., Class A | 15,827 | 759,379 | ||||||
PulteGroup, Inc. | 13,954 | 376,758 | ||||||
1,857,780 | ||||||||
Hotel & Resort REITs-0.06% | ||||||||
Host Hotels & Resorts, Inc. | 40,148 | 787,302 | ||||||
Hotels, Resorts & Cruise Lines-0.48% |
| |||||||
Carnival Corp. | 21,691 | 1,252,872 | ||||||
Hilton Worldwide Holdings, Inc. | 16,039 | 1,332,841 | ||||||
Marriott International, Inc., Class A | 15,318 | 1,918,886 | ||||||
Norwegian Cruise Line Holdings Ltd.(b) | 11,901 | 660,862 | ||||||
Royal Caribbean Cruises Ltd. | 9,316 | 1,103,760 | ||||||
6,269,221 | ||||||||
Household Appliances-0.04% | ||||||||
Whirlpool Corp. | 3,486 | 493,304 | ||||||
Household Products-1.57% | ||||||||
Church & Dwight Co., Inc. | 13,322 | 876,587 | ||||||
Clorox Co. (The) | 6,889 | 1,088,669 | ||||||
Colgate-Palmolive Co. | 46,924 | 3,090,884 | ||||||
Kimberly-Clark Corp. | 18,700 | 2,184,721 | ||||||
Procter & Gamble Co. (The) | 134,795 | 13,284,047 | ||||||
20,524,908 | ||||||||
Housewares & Specialties-0.03% | ||||||||
Newell Brands, Inc. | 23,234 | 377,088 | ||||||
Human Resource & Employment Services-0.03% |
| |||||||
Robert Half International, Inc. | 6,586 | 449,099 | ||||||
Hypermarkets& Super Centers-0.98% |
| |||||||
Costco Wholesale Corp. | 23,708 | 5,185,888 | ||||||
Walmart, Inc. | 77,021 | 7,624,309 | ||||||
12,810,197 | ||||||||
Independent Power Producers & Energy Traders-0.10% |
| |||||||
AES Corp. (The) | 35,832 | 617,385 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco S&P 500 Index Fund |
Shares | Value | |||||||
Independent Power Producers & Energy Traders-(continued) |
| |||||||
NRG Energy, Inc. | 15,686 | $ | 653,793 | |||||
1,271,178 | ||||||||
Industrial Conglomerates-1.48% |
| |||||||
3M Co. | 31,503 | 6,533,407 | ||||||
General Electric Co. | 470,605 | 4,889,586 | ||||||
Honeywell International, Inc. | 40,052 | 6,170,812 | ||||||
Roper Technologies, Inc. | 5,595 | 1,810,822 | ||||||
19,404,627 | ||||||||
Industrial Gases-0.56% | ||||||||
Air Products and Chemicals, Inc. | 11,877 | 2,151,875 | ||||||
Linde PLC (United Kingdom) | 29,813 | 5,164,804 | ||||||
7,316,679 | ||||||||
Industrial Machinery-0.77% | ||||||||
Dover Corp. | 7,944 | 719,170 | ||||||
Flowserve Corp. | 7,038 | 312,558 | ||||||
Fortive Corp. | 15,900 | 1,296,963 | ||||||
Illinois Tool Works, Inc. | 16,515 | 2,379,481 | ||||||
Ingersoll-Rand PLC | 13,294 | 1,403,315 | ||||||
Parker-Hannifin Corp. | 7,169 | 1,262,891 | ||||||
Pentair PLC (United Kingdom) | 8,679 | 369,205 | ||||||
Snap-on, Inc. | 3,033 | 485,280 | ||||||
Stanley Black & Decker, Inc. | 8,130 | 1,076,656 | ||||||
Xylem, Inc. | 9,761 | 737,443 | ||||||
10,042,962 | ||||||||
Industrial REITs-0.23% | ||||||||
Duke Realty Corp. | 19,386 | 573,244 | ||||||
Prologis, Inc. | 34,059 | 2,386,174 | ||||||
2,959,418 | ||||||||
Insurance Brokers-0.52% | ||||||||
Aon PLC | 13,052 | 2,238,810 | ||||||
Arthur J. Gallagher & Co. | 9,936 | 797,662 | ||||||
Marsh & McLennan Cos., Inc. | 27,262 | 2,535,911 | ||||||
Willis Towers Watson PLC | 7,033 | 1,209,817 | ||||||
6,782,200 | ||||||||
Integrated Oil & Gas-2.53% | ||||||||
Chevron Corp. | 103,381 | 12,362,300 | ||||||
Exxon Mobil Corp.(d) | 229,066 | 18,103,086 | ||||||
Occidental Petroleum Corp. | 40,849 | 2,702,161 | ||||||
33,167,547 | ||||||||
Integrated Telecommunication Services-1.91% |
| |||||||
AT&T Inc. | 393,770 | 12,254,123 | ||||||
Verizon Communications Inc. | 223,559 | 12,724,978 | ||||||
24,979,101 | ||||||||
Interactive Home Entertainment-0.29% |
| |||||||
Activision Blizzard, Inc. | 41,283 | 1,739,665 | ||||||
Electronic Arts, Inc.(b) | 16,395 | 1,570,313 |
Shares | Value | |||||||
Interactive Home Entertainment-(continued) |
| |||||||
Take-Two Interactive Software, Inc.(b) | 6,122 | $ | 534,206 | |||||
3,844,184 | ||||||||
Interactive Media & Services-4.53% |
| |||||||
Alphabet, Inc., Class A(b) | 16,175 | 18,221,946 | ||||||
Alphabet, Inc., Class C(b) | 16,645 | 18,641,069 | ||||||
Facebook, Inc., Class A(b) | 129,983 | 20,985,756 | ||||||
TripAdvisor, Inc.(b) | 5,502 | 292,541 | ||||||
Twitter, Inc.(b) | 39,126 | 1,204,298 | ||||||
59,345,610 | ||||||||
Internet & Direct Marketing Retail-3.31% |
| |||||||
Amazon.com, Inc.(b) | 22,222 | 36,440,303 | ||||||
Booking Holdings, Inc.(b) | 2,506 | 4,252,782 | ||||||
eBay, Inc. | 48,966 | 1,819,087 | ||||||
Expedia Group, Inc. | 6,394 | 788,444 | ||||||
43,300,616 | ||||||||
Internet Services & Infrastructure-0.13% |
| |||||||
Akamai Technologies, Inc.(b) | 8,811 | 613,774 | ||||||
VeriSign, Inc.(b) | 5,770 | 1,027,291 | ||||||
1,641,065 | ||||||||
Investment Banking & Brokerage-0.83% |
| |||||||
Charles Schwab Corp. (The) | 65,027 | 2,991,892 | ||||||
E*TRADE Financial Corp. | 13,755 | 673,858 | ||||||
Goldman Sachs Group, Inc. (The) | 18,716 | 3,681,437 | ||||||
Morgan Stanley | 70,731 | 2,969,287 | ||||||
Raymond James Financial, Inc. | 6,962 | 574,922 | ||||||
10,891,396 | ||||||||
IT Consulting & Other Services-1.24% |
| |||||||
Accenture PLC, Class A | 34,465 | 5,561,962 | ||||||
Cognizant Technology Solutions Corp., Class A | 31,327 | 2,223,590 | ||||||
DXC Technology Co. | 15,123 | 996,001 | ||||||
Gartner, Inc.(b) | 4,884 | 694,993 | ||||||
International Business Machines Corp. | 49,197 | 6,795,582 | ||||||
16,272,128 | ||||||||
Leisure Products-0.06% | ||||||||
Hasbro Inc. | 6,281 | 533,257 | ||||||
Mattel, Inc.(b) | 18,673 | 269,265 | ||||||
802,522 | ||||||||
Life & Health Insurance-0.70% | ||||||||
Aflac, Inc. | 41,187 | 2,023,929 | ||||||
Brighthouse Financial, Inc.(b) | 6,442 | 249,434 | ||||||
Lincoln National Corp. | 11,554 | 722,356 | ||||||
MetLife, Inc. | 53,392 | 2,412,784 | ||||||
Principal Financial Group, Inc. | 14,244 | 749,804 | ||||||
Prudential Financial, Inc. | 22,329 | 2,140,235 | ||||||
Torchmark Corp. | 5,576 | 460,355 | ||||||
Unum Group | 11,863 | 443,202 | ||||||
9,202,099 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco S&P 500 Index Fund |
Shares | Value | |||||||
Life Sciences Tools & Services-1.01% |
| |||||||
Agilent Technologies, Inc. | 17,246 | $ | 1,370,022 | |||||
Illumina, Inc.(b) | 7,956 | 2,488,398 | ||||||
IQVIA Holdings, Inc.(b) | 8,571 | 1,200,797 | ||||||
Mettler-Toledo International, Inc.(b) | 1,356 | 923,314 | ||||||
PerkinElmer, Inc. | 6,056 | 570,233 | ||||||
Thermo Fisher Scientific, Inc. | 21,780 | 5,653,435 | ||||||
Waters Corp.(b) | 4,095 | 991,891 | ||||||
13,198,090 | ||||||||
Managed Health Care-1.60% | ||||||||
Anthem, Inc. | 13,982 | 4,204,807 | ||||||
Centene Corp.(b) | 22,280 | 1,356,629 | ||||||
Humana, Inc. | 7,430 | 2,117,847 | ||||||
UnitedHealth Group, Inc. | 52,050 | 12,607,551 | ||||||
WellCare Health Plans, Inc.(b) | 2,688 | 681,623 | ||||||
20,968,457 | ||||||||
Metal & Glass Containers-0.08% | ||||||||
Ball Corp. | 18,351 | 1,005,268 | ||||||
Motorcycle Manufacturers-0.02% | ||||||||
Harley-Davidson, Inc. | 8,809 | 326,990 | ||||||
Movies & Entertainment-1.70% | ||||||||
Netflix, Inc.(b) | 23,593 | 8,448,653 | ||||||
Twenty-First Century Fox, Inc., Class A | 57,186 | 2,883,890 | ||||||
Twenty-First Century Fox, Inc., Class B | 26,353 | 1,321,867 | ||||||
Viacom, Inc., Class B | 19,122 | 558,745 | ||||||
Walt Disney Co. (The) | 80,543 | 9,088,472 | ||||||
22,301,627 | ||||||||
Multi-line Insurance-0.31% | ||||||||
American International Group, Inc. | 47,889 | 2,068,805 | ||||||
Assurant, Inc. | 2,839 | 292,388 | ||||||
Hartford Financial Services Group, Inc. (The) | 19,408 | 957,979 | ||||||
Loews Corp. | 14,956 | 712,205 | ||||||
4,031,377 | ||||||||
Multi-Sector Holdings-1.64% | ||||||||
Berkshire Hathaway, Inc., Class B(b) | 105,254 | 21,187,630 | ||||||
Jefferies Financial Group, Inc. | 15,207 | 308,246 | ||||||
21,495,876 | ||||||||
Multi-Utilities-1.03% | ||||||||
Ameren Corp. | 13,226 | 942,220 | ||||||
CenterPoint Energy, Inc. | 27,116 | 817,276 | ||||||
CMS Energy Corp. | 15,336 | 834,279 | ||||||
Consolidated Edison, Inc. | 16,851 | 1,389,365 | ||||||
Dominion Energy, Inc. | 40,648 | 3,011,610 | ||||||
DTE Energy Co. | 9,877 | 1,220,402 | ||||||
NiSource, Inc. | 19,655 | 530,292 | ||||||
Public Service Enterprise Group, Inc. | 27,346 | 1,608,218 | ||||||
Sempra Energy | 14,808 | 1,783,476 |
Shares | Value | |||||||
Multi-Utilities-(continued) | ||||||||
WEC Energy Group, Inc. | 17,072 | $ | 1,302,252 | |||||
13,439,390 | ||||||||
Office REITs-0.23% | ||||||||
Alexandria Real Estate Equities, Inc. | 5,817 | 790,472 | ||||||
Boston Properties, Inc. | 8,306 | 1,102,123 | ||||||
SL Green Realty Corp. | 4,656 | 422,392 | ||||||
Vornado Realty Trust | 9,411 | 633,455 | ||||||
2,948,442 | ||||||||
Oil & Gas Drilling-0.02% | ||||||||
Helmerich & Payne, Inc. | 5,859 | 317,558 | ||||||
Oil & Gas Equipment & Services-0.50% |
| |||||||
Baker Hughes a GE Co. | 27,776 | 732,731 | ||||||
Halliburton Co. | 47,429 | 1,455,596 | ||||||
National Oilwell Varco, Inc. | 20,741 | 583,652 | ||||||
Schlumberger Ltd. | 74,923 | 3,301,107 | ||||||
TechnipFMC PLC (United Kingdom) | 22,980 | 512,224 | ||||||
6,585,310 | ||||||||
Oil & Gas Exploration & Production-1.24% |
| |||||||
Anadarko Petroleum Corp. | 27,283 | 1,186,811 | ||||||
Apache Corp. | 20,573 | 682,612 | ||||||
Cabot Oil & Gas Corp. | 23,328 | 574,335 | ||||||
Cimarex Energy Co. | 5,129 | 368,826 | ||||||
Concho Resources Inc.(b) | 10,871 | 1,195,810 | ||||||
ConocoPhillips(d) | 62,287 | 4,226,173 | ||||||
Devon Energy Corp. | 25,331 | 747,518 | ||||||
Diamondback Energy, Inc. | 8,344 | 858,848 | ||||||
EOG Resources, Inc. | 31,374 | 2,949,156 | ||||||
Hess Corp. | 13,440 | 777,504 | ||||||
Marathon Oil Corp. | 44,974 | 746,568 | ||||||
Noble Energy, Inc. | 25,986 | 575,590 | ||||||
Pioneer Natural Resources Co. | 9,222 | 1,299,841 | ||||||
16,189,592 | ||||||||
Oil & Gas Refining & Marketing-0.52% |
| |||||||
HollyFrontier Corp. | 8,618 | 441,241 | ||||||
Marathon Petroleum Corp. | 37,377 | 2,317,748 | ||||||
Phillips 66 | 22,974 | 2,213,775 | ||||||
Valero Energy Corp. | 22,989 | 1,874,983 | ||||||
6,847,747 | ||||||||
Oil & Gas Storage & Transportation-0.39% |
| |||||||
Kinder Morgan, Inc. | 102,691 | 1,967,560 | ||||||
ONEOK, Inc. | 22,255 | 1,430,106 | ||||||
Williams Cos., Inc. (The) | 65,495 | 1,748,061 | ||||||
5,145,727 | ||||||||
Packaged Foods & Meats-0.97% | ||||||||
Campbell Soup Co. | 10,449 | 376,373 | ||||||
Conagra Brands, Inc. | 26,273 | 614,000 | ||||||
General Mills, Inc.(d) | 32,258 | 1,520,320 | ||||||
Hershey Co. (The) | 7,618 | 843,160 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco S&P 500 Index Fund |
Shares | Value | |||||||
Packaged Foods & Meats-(continued) |
| |||||||
Hormel Foods Corp. | 14,750 | $ | 639,560 | |||||
JM Smucker Co. (The) | 6,117 | 647,851 | ||||||
Kellogg Co. | 13,712 | 771,437 | ||||||
Kraft Heinz Co. (The) | 33,647 | 1,116,744 | ||||||
Lamb Weston Holdings, Inc. | 7,955 | 551,361 | ||||||
McCormick & Co, Inc. | 6,623 | 900,596 | ||||||
Mondelez International, Inc., Class A | 78,658 | 3,709,511 | ||||||
Tyson Foods, Inc., Class A | 15,917 | 981,442 | ||||||
12,672,355 | ||||||||
Paper Packaging-0.22% | ||||||||
Avery Dennison Corp. | 4,702 | 508,004 | ||||||
International Paper Co. | 21,892 | 1,003,092 | ||||||
Packaging Corp. of America | 5,082 | 485,788 | ||||||
Sealed Air Corp. | 8,442 | 368,240 | ||||||
WestRock Co. | 13,722 | 512,928 | ||||||
2,878,052 | ||||||||
Personal Products-0.16% | ||||||||
Coty, Inc., Class A(b) | 24,381 | 268,191 | ||||||
Estee Lauder Cos., Inc. (The), Class A | 11,897 | 1,867,115 | ||||||
2,135,306 | ||||||||
Pharmaceuticals-4.74% | ||||||||
Allergan PLC | 17,162 | 2,363,379 | ||||||
Bristol-Myers Squibb Co. | 88,308 | 4,561,991 | ||||||
Eli Lilly and Co. | 51,009 | 6,441,926 | ||||||
Johnson & Johnson | 145,105 | 19,827,147 | ||||||
Merck & Co., Inc. | 140,690 | 11,436,690 | ||||||
Mylan N.V.(b) | 27,897 | 736,202 | ||||||
Nektar Therapeutics(b) | 9,376 | 380,103 | ||||||
Perrigo Co. PLC | 6,771 | 329,748 | ||||||
Pfizer, Inc. | 312,748 | 13,557,626 | ||||||
Zoetis, Inc. | 26,016 | 2,451,488 | ||||||
62,086,300 | ||||||||
Property & Casualty Insurance-0.76% |
| |||||||
Allstate Corp. (The) | 18,623 | 1,757,639 | ||||||
Chubb Ltd. | 24,918 | 3,336,520 | ||||||
Cincinnati Financial Corp. | 8,236 | 715,050 | ||||||
Progressive Corp. (The) | 31,547 | 2,299,776 | ||||||
Travelers Cos., Inc. (The) | 14,298 | 1,900,347 | ||||||
10,009,332 | ||||||||
Publishing-0.03% | ||||||||
News Corp., Class A | 20,841 | 271,350 | ||||||
News Corp., Class B | 6,657 | 88,605 | ||||||
359,955 | ||||||||
Railroads-1.00% | ||||||||
CSX Corp. | 43,401 | 3,153,951 | ||||||
Kansas City Southern | 5,494 | 596,868 | ||||||
Norfolk Southern Corp. | 14,734 | 2,641,806 |
Shares | Value | |||||||
Railroads-(continued) | ||||||||
Union Pacific Corp. | 39,862 | $ | 6,684,857 | |||||
13,077,482 | ||||||||
Real Estate Services-0.06% | ||||||||
CBRE Group, Inc., Class A(b) | 17,151 | 853,434 | ||||||
Regional Banks-1.23% | ||||||||
BB&T Corp. | 41,657 | 2,123,257 | ||||||
Citizens Financial Group, Inc. | 25,315 | 935,136 | ||||||
Comerica, Inc. | 8,797 | 766,307 | ||||||
Fifth Third Bancorp | 35,470 | 978,263 | ||||||
First Republic Bank | 8,858 | 929,913 | ||||||
Huntington Bancshares, Inc. | 57,433 | 827,610 | ||||||
KeyCorp | 55,972 | 988,465 | ||||||
M&T Bank Corp. | 7,593 | 1,314,045 | ||||||
People’s United Financial, Inc. | 20,421 | 362,677 | ||||||
PNC Financial Services Group, Inc. (The) | 24,974 | 3,147,223 | ||||||
Regions Financial Corp. | 55,936 | 917,350 | ||||||
SunTrust Banks, Inc. | 24,307 | 1,576,795 | ||||||
SVB Financial Group(b) | 2,862 | 707,372 | ||||||
Zions Bancorp. N.A. | 10,356 | 529,192 | ||||||
16,103,605 | ||||||||
Reinsurance-0.04% | ||||||||
Everest Re Group, Ltd. | 2,197 | 496,764 | ||||||
Research & Consulting Services-0.26% |
| |||||||
Equifax, Inc. | 6,476 | 709,187 | ||||||
IHS Markit Ltd.(b) | 19,406 | 1,031,817 | ||||||
Nielsen Holdings PLC | 19,160 | 501,992 | ||||||
Verisk Analytics, Inc., Class A | 8,859 | 1,120,043 | ||||||
3,363,039 | ||||||||
Residential REITs-0.43% | ||||||||
Apartment Investment & Management Co., Class A | 8,207 | 401,568 | ||||||
AvalonBay Communities, Inc. | 7,484 | 1,456,611 | ||||||
Equity Residential | 19,933 | 1,468,863 | ||||||
Essex Property Trust, Inc. | 3,552 | 993,992 | ||||||
Mid-America Apartment Communities, Inc. | 6,121 | 634,013 | ||||||
UDR, Inc. | 14,907 | 662,169 | ||||||
5,617,216 | ||||||||
Restaurants-1.19% | ||||||||
Chipotle Mexican Grill, Inc.(b) | 1,316 | 799,510 | ||||||
Darden Restaurants, Inc. | 6,673 | 748,110 | ||||||
McDonald’s Corp. | 41,730 | 7,671,643 | ||||||
Starbucks Corp. | 67,121 | 4,715,921 | ||||||
Yum! Brands, Inc. | 16,896 | 1,596,672 | ||||||
15,531,856 | ||||||||
Retail REITs-0.45% | ||||||||
Federal Realty Investment Trust | 3,952 | 527,948 | ||||||
Kimco Realty Corp. | 22,798 | 401,017 | ||||||
Macerich Co. (The) | 5,690 | 248,084 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco S&P 500 Index Fund |
Shares | Value | |||||||
Retail REITs-(continued) | ||||||||
Realty Income Corp. | 15,966 | $ | 1,104,209 | |||||
Regency Centers Corp. | 9,213 | 601,148 | ||||||
Simon Property Group, Inc. | 16,733 | 3,031,350 | ||||||
5,913,756 | ||||||||
Semiconductor Equipment-0.34% | ||||||||
Applied Materials, Inc. | 53,184 | 2,039,075 | ||||||
KLA-Tencor Corp. | 8,281 | 956,373 | ||||||
Lam Research Corp. | 8,395 | 1,478,275 | ||||||
4,473,723 | ||||||||
Semiconductors-3.36% | ||||||||
Advanced Micro Devices, Inc.(b) | 47,582 | 1,119,604 | ||||||
Analog Devices, Inc. | 19,991 | 2,138,237 | ||||||
Broadcom, Inc. | 22,368 | 6,159,252 | ||||||
Intel Corp. | 246,931 | 13,077,466 | ||||||
Maxim Integrated Products, Inc. | 15,014 | 817,212 | ||||||
Microchip Technology, Inc. | 12,795 | 1,111,502 | ||||||
Micron Technology, Inc.(b) | 60,601 | 2,477,369 | ||||||
NVIDIA Corp. | 33,003 | 5,091,043 | ||||||
Qorvo, Inc.(b) | 6,758 | 474,006 | ||||||
QUALCOMM, Inc. | 65,583 | 3,501,476 | ||||||
Skyworks Solutions, Inc. | 9,627 | 786,141 | ||||||
Texas Instruments, Inc. | 51,969 | 5,497,281 | ||||||
Xilinx, Inc. | 13,703 | 1,716,986 | ||||||
43,967,575 | ||||||||
Soft Drinks-1.50% | ||||||||
Coca-Cola Co. (The) | 207,266 | 9,397,441 | ||||||
Monster Beverage Corp.(b) | 21,540 | 1,374,898 | ||||||
PepsiCo, Inc. | 76,371 | 8,831,542 | ||||||
19,603,881 | ||||||||
Specialized Consumer Services-0.02% |
| |||||||
H&R Block, Inc. | 11,154 | 269,369 | ||||||
Specialized REITs-1.15% | ||||||||
American Tower Corp., Class A | 23,831 | 4,197,831 | ||||||
Crown Castle International Corp. | 22,444 | 2,665,225 | ||||||
Digital Realty Trust, Inc. | 11,185 | 1,265,247 | ||||||
Equinix, Inc. | 4,349 | 1,841,802 | ||||||
Extra Space Storage, Inc. | 6,804 | 652,776 | ||||||
Iron Mountain, Inc. | 15,491 | 548,691 | ||||||
Public Storage | 8,112 | 1,715,607 | ||||||
SBA Communications Corp., Class A(b) | 6,127 | 1,106,291 | ||||||
Weyerhaeuser Co. | 40,534 | 1,008,891 | ||||||
15,002,361 | ||||||||
Specialty Chemicals-0.59% | ||||||||
Albemarle Corp. | 5,733 | 523,366 | ||||||
Celanese Corp., Series A | 7,236 | 740,170 | ||||||
Ecolab, Inc. | 13,753 | 2,323,019 | ||||||
International Flavors & Fragrances, Inc. | 5,494 | 700,485 | ||||||
PPG Industries, Inc. | 13,017 | 1,457,514 |
Shares | Value | |||||||
Specialty Chemicals-(continued) |
| |||||||
Sherwin-Williams Co. (The) | 4,457 | $ | 1,930,772 | |||||
7,675,326 | ||||||||
Specialty Stores-0.16% | ||||||||
Bunge Ltd. | 6,651 | 634,173 | ||||||
Tiffany & Co. | 5,860 | 556,934 | ||||||
Ulta Beauty, Inc.(b) | 3,054 | 954,345 | ||||||
2,145,452 | ||||||||
Steel-0.08% | ||||||||
Nucor Corp. | 17,015 | 1,030,599 | ||||||
Systems Software-4.37% | ||||||||
Fortinet, Inc.(b) | 7,834 | 679,913 | ||||||
Microsoft Corp. | 418,167 | 46,847,249 | ||||||
Oracle Corp. | 137,864 | 7,186,850 | ||||||
Red Hat, Inc.(b) | 9,540 | 1,742,004 | ||||||
Symantec Corp. | 34,565 | 777,367 | ||||||
57,233,383 | ||||||||
Technology Hardware, Storage & Peripherals-3.66% |
| |||||||
Apple Inc. | 243,908 | 42,232,670 | ||||||
Hewlett Packard Enterprise Co. | 76,990 | 1,261,096 | ||||||
HP, Inc. | 85,614 | 1,689,164 | ||||||
NetApp, Inc. | 13,627 | 888,481 | ||||||
Seagate Technology PLC | 14,057 | 654,494 | ||||||
Western Digital Corp. | 15,671 | 788,251 | ||||||
Xerox Corp. | 11,250 | 347,625 | ||||||
47,861,781 | ||||||||
Tobacco-0.97% | ||||||||
Altria Group, Inc. | 101,664 | 5,328,210 | ||||||
Philip Morris International Inc. | 84,105 | 7,312,089 | ||||||
12,640,299 | ||||||||
Trading Companies & Distributors-0.18% |
| |||||||
Fastenal Co. | 15,534 | 977,710 | ||||||
United Rentals, Inc.(b) | 4,350 | 585,467 | ||||||
W.W. Grainger, Inc. | 2,468 | 752,172 | ||||||
2,315,349 | ||||||||
Trucking-0.04% | ||||||||
JB Hunt Transport Services, Inc. | 4,705 | 506,587 | ||||||
Water Utilities-0.08% | ||||||||
American Water Works Co., Inc. | 9,808 | 996,689 | ||||||
Total Common Stocks & Other Equity Interests |
| 1,265,328,811 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 | Invesco S&P 500 Index Fund |
Shares | Value | |||||||
Money Market Funds-3.27% | ||||||||
Invesco Government & Agency Portfolio-Institutional | 14,984,089 | $ | 14,984,089 | |||||
Invesco Liquid Assets Portfolio-Institutional Class, 2.51%(e) | 10,701,017 | 10,704,227 | ||||||
Invesco Treasury Portfolio-Institutional Class, 2.29%(e) | 17,124,673 | 17,124,673 | ||||||
Total Money Market Funds |
| 42,812,989 | ||||||
TOTAL INVESTMENTS IN SECURITIES-99.93% |
| 1,308,141,800 | ||||||
OTHER ASSETS LESS LIABILITIES-0.07% | 891,534 | |||||||
NET ASSETS-100.00% | $ | 1,309,033,334 |
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) | The Fund’s Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. The value of this security as of February 28, 2019 represented less than 1% of the Fund’s Net Assets. 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 1J. |
(e) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the7-day SEC standardized yield as of February 28, 2019. |
Portfolio Composition
By sector, based on Net Assets
as of February 28, 2019
Information Technology | 19.93 | % | ||
Health Care | 14.31 | |||
Financials | 12.89 | |||
Communication Services | 9.76 | |||
Consumer Discretionary | 9.56 | |||
Industrials | 9.47 | |||
Consumer Staples | 6.92 | |||
Energy | 5.20 | |||
Utilities | 3.15 | |||
Real Estate | 2.88 | |||
Materials | 2.59 | |||
Money Market Funds, Plus Other Assets Less Liabilities | 3.34 |
Open Futures Contracts | ||||||||||||||||||||
Long Futures Contracts |
Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation | |||||||||||||||
Equity Risk | ||||||||||||||||||||
E-Mini S&P 500 Index | 323 | March-2019 | $ | 44,972,905 | $ | 3,800,565 | $ | 3,800,565 |
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 28, 2019
(Unaudited)
Assets: | ||||
Investments in securities, at value | $ | 1,264,898,196 | ||
Investments in affiliates, at value | 43,243,604 | |||
Cash | 194,513 | |||
Receivable for: | ||||
Investments sold | 3,048 | |||
Fund shares sold | 1,238,161 | |||
Dividends | 2,722,996 | |||
Investment for trustee deferred compensation and retirement plans | 79,894 | |||
Other assets | 42,496 | |||
Total assets | 1,312,422,908 | |||
Liabilities: | ||||
Other investments: | ||||
Variation margin payable - futures contracts | 167,314 | |||
Payable for: | ||||
Fund shares reacquired | 2,302,160 | |||
Accrued fees to affiliates | 633,507 | |||
Accrued trustees’ and officers’ fees and benefits | 5,368 | |||
Accrued other operating expenses | 189,509 | |||
Trustee deferred compensation and retirement plans | 91,716 | |||
Total liabilities | 3,389,574 | |||
Net assets applicable to shares outstanding | $ | 1,309,033,334 | ||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 675,580,745 | ||
Distributable earnings | 633,452,589 | |||
$ | 1,309,033,334 |
Net Assets: | ||||
Class A | $ | 858,352,304 | ||
Class C | $ | 273,791,300 | ||
Class Y | $ | 172,131,019 | ||
Class R6 | $ | 4,758,711 | ||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 28,761,064 | |||
Class C | 9,509,234 | |||
Class Y | 5,699,093 | |||
Class R6 | 157,530 | |||
Class A: | ||||
Net asset value per share | $ | 29.84 | ||
Maximum offering price per share (Net asset value of $29.84 ÷ 94.50%) | $ | 31.58 | ||
Class C: | ||||
Net asset value and offering price per share | $ | 28.79 | ||
Class Y: | ||||
Net asset value and offering price per share | $ | 30.20 | ||
Class R6: | ||||
Net asset value and offering price per share | $ | 30.21 |
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 28, 2019
(Unaudited)
Investment income: | ||||
Dividends | $ | 12,482,251 | ||
Dividends from affiliates (includes securities lending income of $3,484) | 356,002 | |||
Total investment income | 12,838,253 | |||
Expenses: | ||||
Advisory fees | 743,960 | |||
Administrative services fees | 130,219 | |||
Custodian fees | 15,662 | |||
Distribution fees: | ||||
Class A | 947,106 | |||
Class C | 1,575,580 | |||
Transfer agent fees – A, C and Y | 720,557 | |||
Transfer agent fees – R6 | 1,524 | |||
Trustees’ and officers’ fees and benefits | 18,627 | |||
Registration and filing fees | 44,738 | |||
Licensing fees | 123,993 | |||
Reports to shareholders | 41,424 | |||
Professional services fees | 34,364 | |||
Other | 30,886 | |||
Total expenses | 4,428,640 | |||
Less: Fees waived and expense offset arrangement(s) | (18,664 | ) | ||
Net expenses | 4,409,976 | |||
Net investment income | 8,428,277 | |||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities | 6,578,895 | |||
Futures contracts | (2,391,082 | ) | ||
4,187,813 | ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | (56,165,869 | ) | ||
Futures contracts | 2,575,660 | |||
(53,590,209 | ) | |||
Net realized and unrealized gain (loss) | (49,402,396 | ) | ||
Net increase (decrease) in net assets resulting from operations | $ | (40,974,119 | ) |
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 28, 2019 and the year ended August 31, 2018
(Unaudited)
February 28, 2019 | August 31, 2018 | |||||||
Operations: | ||||||||
Net investment income | $ | 8,428,277 | $ | 13,833,295 | ||||
Net realized gain | 4,187,813 | 28,129,383 | ||||||
Change in net unrealized appreciation (depreciation) | (53,590,209 | ) | 162,674,203 | |||||
Net increase (decrease) in net assets resulting from operations | (40,974,119 | ) | 204,636,881 | |||||
Distributions to shareholders from distributable earnings(1): | ||||||||
Class A | (17,931,692 | ) | (9,069,459 | ) | ||||
Class B | - | (8,313 | ) | |||||
Class C | (5,722,932 | ) | (2,178,576 | ) | ||||
Class Y | (3,847,793 | ) | (2,294,947 | ) | ||||
Class R6 | (108,124 | ) | (5,812 | ) | ||||
Total distributions to shareholders from distributable earnings | (27,610,541 | ) | (13,557,107 | ) | ||||
Share transactions-net: | ||||||||
Class A | 94,214,529 | 25,874,696 | ||||||
Class B | - | (1,675,552 | ) | |||||
Class C | (50,892,616 | ) | 22,566,167 | |||||
Class Y | 25,527,338 | (14,506,640 | ) | |||||
Class R6 | 776,331 | 3,724,262 | ||||||
Net increase in net assets resulting from share transactions | 69,625,582 | 35,982,933 | ||||||
Net increase in net assets | 1,040,922 | 227,062,707 | ||||||
Net assets: | ||||||||
Beginning of period | 1,307,992,412 | 1,080,929,705 | ||||||
End of period | $ | 1,309,033,334 | $ | 1,307,992,412 |
(1) | The Securities and Exchange Commission eliminated the requirement to disclose distribution components separately, except for tax return of capital. For the year ended August 31, 2018, distributions to shareholders from distributable earnings consisted of distributions from net investment income. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 | Invesco S&P 500 Index Fund |
Notes to Financial Statements
February 28, 2019
(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 anopen-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is total return through growth of capital and current income.
The Fund currently consists of four different classes of shares: Class A, Class C, Class Y and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with afront-end sales charge unless certain waiver criteria are met. 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 Class R6 shares are sold at net asset value.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946,Financial Services - Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations- Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in theover-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments inopen-end andclosed-end registered investment companies that do not trade on an exchange are valued at theend-of-day net asset value per share. Investments inopen-end andclosed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such asinstitution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
17 | Invesco S&P 500 Index Fund |
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 (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on theex-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 theFund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
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 net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on theex-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 of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses– Fees provided for under the Rule12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R6are 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 theperiod-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 the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Securities Lending– The Fund may lend portfolio securities having a market value up toone-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be |
18 | Invesco S&P 500 Index Fund |
purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included inDividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
J. | 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 (“Counterparties”) 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. |
K. | Collateral– To the extent the Fund has designated 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. This practice does not apply to securities pledged as collateral for securities lending transactions. |
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
First $2 billion | 0.12 | % | ||
Over $2 billion | 0.10 | % |
For the six months ended February 28, 2019, the effective advisory fees incurred by the Fund was 0.12%.
Under the terms of a mastersub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “AffiliatedSub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such AffiliatedSub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such AffiliatedSub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2019, to waive advisory fees and/or reimburse expenses 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 Y and Class R6shares to 2.00%, 2.75%, 1.75% and 1.75%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause 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 ornon-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2019. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limit.
Further, the Adviser has contractually agreed, through at least June 30, 2020, 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 28, 2019, the Adviser waived advisory fees of $15,609.
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 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into asub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and 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 orsub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer agent fees.
19 | Invesco S&P 500 Index Fund |
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 Rule12b-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; and (2) Class C – up to 1.00% of the average daily net assets of Class C shares. The fees are accrued daily and paid monthly.
For the six months ended February 28, 2019, expenses incurred under these agreements are shown in the Statement of Operations asDistribution 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 28, 2019, IDI advised the Fund that IDI retained $46,146infront-end sales commissions from the sale of Class A shares and $4,577 and $13,240 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Fund are officers and directors of Invesco.
NOTE 3–Additional Valuation Information
Generally Accepted Accounting Principles (“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 28, 2019. 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.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks & Other Equity Interests | $ | 1,265,328,811 | $ | - | $ | - | $ | 1,265,328,811 | ||||||||
Money Market Funds | 42,812,989 | - | - | 42,812,989 | ||||||||||||
Total Investments in Securities | 1,308,141,800 | - | - | 1,308,141,800 | ||||||||||||
Other Investments -Assets* | ||||||||||||||||
Futures Contracts | 3,800,565 | - | - | 3,800,565 | ||||||||||||
Total Investments | $ | 1,311,942,365 | $ | - | $ | - | $ | 1,311,942,365 |
* | Unrealized appreciation. |
NOTE 4–Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions andclose-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
20 | Invesco S&P 500 Index Fund |
Value of Derivative Investments atPeriod-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of February 28, 2019:
Value | ||||
Derivative Assets | Equity Risk | |||
Unrealized appreciation on futures contracts - Exchange-Traded(a) | $ | 3,800,565 | ||
Derivatives not subject to master netting agreements | (3,800,565 | ) | ||
Total Derivative Assets subject to master netting agreements | $ | - |
(a) | The daily variation margin receivable (payable) atperiod-end is recorded in the Statement of Assets and Liabilities. |
Effect of Derivative Investments for the six months ended February 28, 2019
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain (Loss) on Statement of Operations | ||||
Equity Risk | ||||
Realized (Loss): | ||||
Futures contracts | $ | (2,391,082 | ) | |
Change in Net Unrealized Appreciation: | ||||
Futures contracts | 2,575,660 | |||
Total | $ | 184,578 | |
The table below summarizes the average notional value of derivatives held during the period.
Futures Contracts | ||||
Average notional value | $ | 30,574,215 |
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 28, 2019.
Value 08/31/18 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value 02/28/19 | Dividend Income | ||||||||
Invesco Ltd. | $514,583 | $17,966 | $- | $(101,934) | $- | $430,615 | $13,114 |
NOTE 6–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $3,055.
NOTE 7–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Feesand 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, andTrustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan.Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 8–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any atperiod-end, are shown in the Statement of Assets and Liabilities under the payable captionAmount 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.
21 | Invesco S&P 500 Index Fund |
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 GAAP. 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 fiscalyear-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. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of August 31, 2018.
NOTE 10–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2019 was $60,005,671 and $18,312,900, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reportingperiod-end.
Unrealized Appreciation (Depreciation) of Investments on a TaxBasis | ||||
Aggregate unrealized appreciation of investments | $651,456,364 | |||
Aggregate unrealized (depreciation) of investments | (24,450,215 | ) | ||
Net unrealized appreciation of investments | $627,006,149 |
Cost of investments for tax purposes is $684,936,216.
NOTE 11–Share Information
Summary of Share Activity | ||||||||||||||||||||
Six months ended February 28, 2019(a) | Year ended August 31, 2018 | |||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Sold: | ||||||||||||||||||||
Class A | 7,447,712 | $217,617,773 | 4,805,626 | $140,602,068 | ||||||||||||||||
Class B(b) | - | - | 1,571 | 43,156 | ||||||||||||||||
Class C | 1,737,326 | 48,582,138 | 2,491,828 | 70,190,318 | ||||||||||||||||
Class Y | 1,814,152 | 51,892,289 | 1,705,580 | 50,666,573 | ||||||||||||||||
Class R6 | 38,195 | 1,118,413 | 143,776 | 4,429,414 | ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||||||
Class A | 583,509 | 16,209,881 | 285,046 | 8,195,074 | ||||||||||||||||
Class B(b) | - | - | 282 | 7,941 | ||||||||||||||||
Class C | 189,856 | 5,098,093 | 69,675 | 1,937,663 | ||||||||||||||||
Class Y | 108,623 | 3,052,301 | 66,773 | 1,941,093 | ||||||||||||||||
Class R6 | 3,784 | 106,330 | 194 | 5,635 | ||||||||||||||||
Conversion of Class B shares to Class A shares:(c) | ||||||||||||||||||||
Class A | - | - | 45,012 | 1,397,621 | ||||||||||||||||
Class B | - | - | (46,623 | ) | (1,397,621 | ) |
22 | Invesco S&P 500 Index Fund |
Summary of Share Activity | ||||||||||||||||||||
Six months ended February 28, 2019(a) | Year ended August 31, 2018 | |||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Reacquired: | ||||||||||||||||||||
Class A | (4,719,418 | ) | (139,613,125 | ) | (4,267,693 | ) | (124,320,067 | ) | ||||||||||||
Class B(b) | - | - | (11,873 | ) | (329,028 | ) | ||||||||||||||
Class C | (3,781,120 | ) | (104,572,847 | ) | (1,761,326 | ) | (49,561,814 | ) | ||||||||||||
Class Y | (997,664 | ) | (29,417,252 | ) | (2,249,589 | ) | (67,114,306 | ) | ||||||||||||
Class R6 | (15,064 | ) | (448,412 | ) | (23,773 | ) | (710,787 | ) | ||||||||||||
Net increase in share activity | 2,409,891 | $ | 69,625,582 | 1,254,486 | $ | 35,982,933 |
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 50% 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) | Class B shares activity for the period September 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
NOTE 12–Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, of period | Net investment income(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end | Total return (b) | Net assets, end of period | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net fee waivers and/or expenses absorbed | Ratio of net income to average | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $31.63 | $0.22 | $(1.32 | ) | $(1.10 | ) | $(0.42 | ) | $(0.27 | ) | $(0.69 | ) | $29.84 | (3.31 | )% | $858,352 | 0.55 | %(d) | 0.55 | %(d) | 1.52 | %(d) | 1 | % | ||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 26.93 | 0.38 | 4.69 | 5.07 | (0.37 | ) | - | (0.37 | ) | 31.63 | 18.96 | 805,009 | 0.57 | 0.57 | 1.30 | 4 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 23.60 | 0.38 | 3.26 | 3.64 | (0.31 | ) | - | (0.31 | ) | 26.93 | 15.55 | 661,887 | 0.58 | 0.58 | 1.52 | 4 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 21.42 | 0.36 | 2.16 | 2.52 | (0.34 | ) | - | (0.34 | ) | 23.60 | 11.89 | 600,869 | 0.59 | 0.59 | 1.62 | 6 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 21.69 | 0.32 | (0.33 | ) | (0.01 | ) | (0.26 | ) | - | (0.26 | ) | 21.42 | (0.05 | ) | 534,656 | 0.58 | 0.58 | 1.44 | 4 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 17.67 | 0.29 | 4.01 | 4.30 | (0.28 | ) | - | (0.28 | ) | 21.69 | 24.54 | (e) | 557,688 | 0.59 | (e) | 0.59 | (e) | 1.45 | (e) | 5 | ||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 30.43 | 0.11 | (1.26 | ) | (1.15 | ) | (0.22 | ) | (0.27 | ) | (0.49 | ) | 28.79 | (3.65 | ) | 273,791 | 1.31 | (d) | 1.31 | (d) | 0.76 | (d) | 1 | |||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 25.95 | 0.17 | 4.51 | 4.68 | (0.20 | ) | - | (0.20 | ) | 30.43 | 18.11 | (f) | 345,823 | 1.29 | (f) | 1.29 | (f) | 0.58 | (f) | 4 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 22.77 | 0.19 | 3.14 | 3.33 | (0.15 | ) | - | (0.15 | ) | 25.95 | 14.71 | (f) | 274,100 | 1.31 | (f) | 1.31 | (f) | 0.79 | (f) | 4 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 20.70 | 0.19 | 2.08 | 2.27 | (0.20 | ) | - | (0.20 | ) | 22.77 | 11.05 | (f) | 222,221 | 1.32 | (f) | 1.32 | (f) | 0.89 | (f) | 6 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 20.99 | 0.15 | (0.32 | ) | (0.17 | ) | (0.12 | ) | - | (0.12 | ) | 20.70 | (0.81 | ) | 164,876 | 1.33 | 1.33 | 0.69 | 4 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 17.12 | 0.13 | 3.89 | 4.02 | (0.15 | ) | - | (0.15 | ) | 20.99 | 23.59 | 124,452 | 1.35 | 1.35 | 0.69 | 5 | ||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 32.04 | 0.26 | (1.34 | ) | (1.08 | ) | (0.49 | ) | (0.27 | ) | (0.76 | ) | 30.20 | (3.18 | ) | 172,131 | 0.31 | (d) | 0.31 | (d) | 1.76 | (d) | 1 | |||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 27.26 | 0.46 | 4.75 | 5.21 | (0.43 | ) | - | (0.43 | ) | 32.04 | 19.29 | 152,974 | 0.32 | 0.32 | 1.55 | 4 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 23.88 | 0.45 | 3.29 | 3.74 | (0.36 | ) | - | (0.36 | ) | 27.26 | 15.83 | 143,171 | 0.33 | 0.33 | 1.77 | 4 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 21.67 | 0.42 | 2.18 | 2.60 | (0.39 | ) | - | (0.39 | ) | 23.88 | 12.15 | 87,687 | 0.34 | 0.34 | 1.87 | 6 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 21.94 | 0.38 | (0.34 | ) | 0.04 | (0.31 | ) | - | (0.31 | ) | 21.67 | 0.17 | 48,047 | 0.33 | 0.33 | 1.69 | 4 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 17.87 | 0.34 | 4.05 | 4.39 | (0.32 | ) | - | (0.32 | ) | 21.94 | 24.83 | 24,870 | 0.35 | 0.35 | 1.69 | 5 | ||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 32.05 | 0.27 | (1.34 | ) | (1.07 | ) | (0.50 | ) | (0.27 | ) | (0.77 | ) | 30.21 | (3.15 | ) | 4,759 | 0.26 | (d) | 0.26 | (d) | 1.81 | (d) | 1 | |||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 27.28 | 0.48 | 4.75 | 5.23 | (0.46 | ) | - | (0.46 | ) | 32.05 | 19.33 | 4,186 | 0.29 | 0.29 | 1.58 | 4 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17(g) | 25.85 | 0.20 | 1.23 | 1.43 | - | - | - | 27.28 | 5.53 | 284 | 0.26 | (h) | 0.26 | (h) | 1.84 | (h) | 4 |
(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. Not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $773,286, $317,729, $154,963 and $4,230 for Class A, Class C, Class Y and Class R6 shares, respectively. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual12b-1 fees of 0.24% for the year ended August 31, 2014 |
(f) | The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual12b-1 fees of 0.97%, 0.98% and 0.98% for the years ended August 31, 2018, August 31, 2017 and August 31, 2016, respectively. |
(g) | Commencement date of April 4, 2017. |
(h) | Annualized. |
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, 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, 2018 through February 28, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||
Beginning Account Value (09/01/18) | Ending Account Value (02/28/19)1 | Expenses Paid During Period 2 | Ending Account Value (02/28/19) | Expenses Paid During Period 2 | Annualized Expense Ratio | |||||||
Class A | $1,000.00 | $966.90 | $2.68 | $1,022.07 | $2.76 | 0.55% | ||||||
Class C | 1,000.00 | 963.50 | 6.38 | 1,018.30 | 6.56 | 1.31 | ||||||
Class Y | 1,000.00 | 968.20 | 1.51 | 1,023.26 | 1.56 | 0.31 | ||||||
Class R6 | 1,000.00 | 968.50 | 1.27 | 1,023.51 | 1.30 | 0.26 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2018 through February 28, 2019, 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 181/365 to reflect the most recent fiscal half year. |
24 | Invesco S&P 500 Index Fund |
Explore High-Conviction Investing with Invesco
Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
∎ | Fund reports and prospectuses |
∎ | Quarterly statements |
∎ | Daily confirmations |
∎ | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on FormN-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s FormsN-Q (or any successor Form) on the SEC website at sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov. | | |
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd. |
SEC file numbers:811-09913 and333-36074 | Invesco Distributors, Inc. | MS-SPI-SAR-1 | 04262019 1341 |
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| Semiannual Report to Shareholders
| February 28, 2019 | ||
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Invesco Short Duration High Yield Municipal Fund | ||||
Nasdaq: | ||||
A: ISHAX ∎ C: ISHCX ∎ Y: ISHYX ∎ R5: ISHFX ∎ R6: ISHSX |
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2 | Fund Performance | |||||
4 | Letters to Shareholders | |||||
5 | Schedule of Investments | |||||
19 | Financial Statements | |||||
22 | Notes to Financial Statements | |||||
29 | Financial Highlights | |||||
30 | Fund Expenses |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800 959 4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most currentmonth-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, 8/31/18 to 2/28/19, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) orfront-end sales charges, which would have reduced performance.
|
| |||
Class A Shares | 1.58% | |||
Class C Shares | 1.20 | |||
Class Y Shares | 1.71 | |||
Class R5 Shares | 1.71 | |||
Class R6 Shares | 1.81 | |||
S&P Municipal Bond High Yield Indexq (Broad Market Index) | 0.88 | |||
Custom Invesco Short Duration High Yield Municipal Index§ (Style-Specific Index) | 1.07 | |||
Lipper High Yield Municipal Debt Funds Index¨ (Peer Group Index) | 1.06 | |||
Source(s):q RIMES Technologies Corp.;§Invesco, RIMES Technologies Corp.;¨Lipper Inc. |
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TheS&P Municipal Bond High Yield Index is an unmanaged index considered representative of municipal bonds that are not rated or are rated below investment grade. |
| |||
TheCustom Invesco Short Duration High Yield Municipal Index is composed of 60% S&P Municipal Bond High Yield Index and 40% S&P Municipal Bond Short Index. |
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TheLipper High Yield Municipal Debt Funds Index is an unmanaged index considered representative of high yield municipal debt funds tracked by Lipper. |
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TheS&P Municipal Bond Short Index is considered representative of US municipal bonds with maturities between six months and four years. |
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The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
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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. |
|
For more information about your Fund Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
|
2 | Invesco Short Duration High Yield Municipal Fund |
Average Annual Total Returns |
| |||
As of 2/28/19, including maximum applicable sales charges |
| |||
| ||||
Class A Shares | ||||
Inception (9/30/15) | 3.80 | % | ||
1 Year | 1.16 | |||
Class C Shares* | ||||
Inception (9/30/15) | 3.78 | % | ||
1 Year | 2.00 | |||
Class Y Shares | ||||
Inception (9/30/15) | 4.86 | % | ||
1 Year | 4.03 | |||
Class R5 Shares | ||||
Inception (9/30/15) | 4.86 | % | ||
1 Year | 3.93 | |||
Class R6 Shares | ||||
Inception | 4.76 | % | ||
1 Year | 4.03 | |||
* Effective January 26, 2019, Class C share performance includes the conversion to A shares after 10 years. |
|
Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares and includes the12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recentmonth-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 oftaxes 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 C, Class Y, Class R5 and Class R6 shares was 0.86%, 1.61%, 0.61%, 0.61% and 0.61% respectively.1The 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 Y, Class R5 and Class R6
Average Annual Total Returns |
| |||
As of 12/31/18, the most recent calendar quarterend, including maximum applicable salescharges |
| |||
Class A Shares | ||||
Inception (9/30/15) | 3.54 | % | ||
1 Year | -0.55 | |||
Class C Shares | ||||
Inception (9/30/15) | 3.56 | % | ||
1 Year | 0.15 | |||
Class Y Shares | ||||
Inception (9/30/15) | 4.64 | % | ||
1 Year | 2.26 | |||
Class R5 Shares | ||||
Inception (9/30/15) | 4.64 | % | ||
1 Year | 2.16 | |||
Class R6 Shares | ||||
Inception | 4.54 | % | ||
1 Year | 2.26 |
shares was 1.06%, 1.81%, 0.81%, 0.82% and 0.76%, 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 Y, Class R5 and Class R6 shares do not have afront-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least December 31, 2019. See current prospectus for more information. |
3 | Invesco Short Duration High Yield Municipal Fund |
Letters to Shareholders
| ||
Bruce Crockett | Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time; monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory andsub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper, Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. | ||
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. |
Sincerely, |
![]() |
Bruce L. Crockett Independent Chair |
Invesco Funds Board of Trustees |
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward. Our website,invesco.com/us, offers a wide range of market insights and investment perspectives. | |
On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246. | ||
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely, |
![]() |
Andrew Schlossberg |
Head of the Americas, |
Senior Managing Director, Invesco Ltd. |
4 | Invesco Short Duration High Yield Municipal Fund |
Schedule of Investments
February 28, 2019
(Unaudited)
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||||
Municipal Obligations-103.23%
| ||||||||||||||||
Alabama-1.10% | ||||||||||||||||
Birmingham (City of) Special Care Facilities Financing Authority (Methodist Home for the Aging); Series 2016, RB | 5.25 | % | 06/01/2025 | $1,500 | $ 1,648,605 | |||||||||||
Black Belt Energy Gas District (The); Series 2018B-1, Gas Prepay Floating Rate RB (1 mo. USD LIBOR + 0.90%)(a)(b) | 2.57 | % | 12/01/2023 | 1,500 | 1,469,700 | |||||||||||
Huntsville (City of) Special Care Facilities Financing Authority (Redstone Village); Series 2007, RB(c) | 5.50 | % | 01/01/2028 | 90 | 73,340 | |||||||||||
Southeast Alabama Gas Supply District (The) (No. 1); | 2.57 | % | 04/01/2024 | 750 | 742,612 | |||||||||||
Series 2018 C, Gas Supply Floating Rate RB (SIFMA Municipal Swap Index + 0.65%)(a)(b) | 2.39 | % | 04/01/2024 | 250 | 250,013 | |||||||||||
4,184,270 | ||||||||||||||||
Alaska-0.10% | ||||||||||||||||
Northern Tobacco Securitization Corp.; Series 2006 A, Tobacco Settlement Asset-Backed RB | 4.63 | % | 06/01/2023 | 395 | 395,070 | |||||||||||
American Samoa-0.26% | ||||||||||||||||
American Samoa (Territory of) Economic Development Authority; Series 2015 A, Ref. General RB | 6.25 | % | 09/01/2029 | 1,000 | 1,001,400 | |||||||||||
Arizona-3.89% | �� | |||||||||||||||
Arizona (State of) Industrial Development Authority (American Charter Schools Foundation); Series 2017, Ref. Education RB(d) | 5.00 | % | 07/01/2022 | 1,500 | 1,542,420 | |||||||||||
Series 2017, Ref. Education RB(d) | 6.00 | % | 07/01/2037 | 940 | 999,352 | |||||||||||
Arizona (State of) Industrial Development Authority (Basis Schools); Series 2017 A, Ref. Education RB(d) | 5.00 | % | 07/01/2026 | 500 | 535,055 | |||||||||||
Arizona (State of) Industrial Development Authority (Leman Academy of Excellence); | 4.38 | % | 07/01/2029 | 1,000 | 983,230 | |||||||||||
Series 2017 A, Ref. Education RB(d) | 5.00 | % | 07/01/2032 | 500 | 505,785 | |||||||||||
Arizona (State of) Industrial Development Authority (Mater Academy of Nevada Mountain Vista Campus Project); Series 2018 A, Education RB(d) | 4.75 | % | 12/15/2028 | 395 | 401,138 | |||||||||||
Arizona (State of) Industrial Development Authority (Pinecrest Academy of Nevada-Horizon, Inspirada and St. Rose Campus Projects); Series 2018 A, Education RB (d) | 5.00 | % | 07/15/2028 | 1,000 | 1,052,760 | |||||||||||
Glendale (City of) Industrial Development Authority (Terraces of Phoenix); | 3.60 | % | 07/01/2023 | 720 | 721,793 | |||||||||||
Series 2018 A, Ref. RB | 5.00 | % | 07/01/2038 | 320 | 328,749 | |||||||||||
Maricopa County Pollution Control Corp. (Southern California Education Co.); Series 2000 B, Ref. RB | 5.00 | % | 06/01/2035 | 3,000 | 3,057,720 | |||||||||||
Phoenix (City of) Industrial Development Authority (Basis Schools); Series 2016 A, Ref. Education RB(d) | 5.00 | % | 07/01/2035 | 1,000 | 1,028,860 | |||||||||||
Pima (County of) Industrial Development Authority (American Leadership Academy); Series 2015, Ref. Education Facility RB(d) | 4.60 | % | 06/15/2025 | 415 | 424,449 | |||||||||||
Series 2015, Ref. Education Facility RB(d) | 5.38 | % | 06/15/2035 | 1,000 | 1,033,520 | |||||||||||
Pima (County of) Industrial Development Authority (Grande Innovations Academy); Series 2018, Education Facility RB(d) | 4.13 | % | 07/01/2026 | 1,225 | 1,199,912 | |||||||||||
Tempe (City of) Industrial Development Authority (Mirabella at ASU); Series 2017 B, RB(d) | 4.00 | % | 10/01/2023 | 1,000 | 1,004,530 | |||||||||||
14,819,273 | ||||||||||||||||
California-3.40% | ||||||||||||||||
Bay Area Toll Authority (San Francisco Bay Area); Series 2007E-3, Toll Bridge Floating Rate RB (SIFMA Municipal Swap Index + 0.70%)(a)(b) | 2.44 | % | 10/01/2019 | 2,000 | 2,000,640 | |||||||||||
California (State of) Municipal Finance Authority (Bella Mente Montessori Academy); Series 2018 A, Charter School Lease RB(d) | 5.00 | % | 06/01/2028 | 430 | 466,382 | |||||||||||
California (State of) Pollution Control Financing Authority (Aemerge Redpack Services Southern California, LLC); Series 2016, Solid Waste Disposal RB(d)(e) | 7.00 | % | 12/01/2027 | 710 | 686,542 | |||||||||||
California (State of) Pollution Control Financing Authority (Waste Management Inc.); Series2015A-1, Solid Waste Disposal RB(e) | 3.38 | % | 07/01/2025 | 2,000 | 2,086,560 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Short Duration High Yield Municipal Fund |
Interest Rate | Maturity Date | Principal (000) | Value | |||||||||
California-(continued)
| ||||||||||||
California (State of) School Finance Authority (New Designs Charter School); Series 2012 A, Educational Facilities RB | 5.25% | 06/01/2032 | $1,000 | $ | 1,028,700 | |||||||
California (State of) Statewide Communities Development Authority (Creative Child Care & Team Charter); Series 2015, School Facilities RB (Acquired 11/03/2015; Cost $500,000)(d) | 5.00% | 06/01/2022 | 445 | 448,409 | ||||||||
California (State of) Statewide Communities Development Authority (Lancer Educational Student Housing); | 4.00% | 06/01/2021 | 405 | 410,702 | ||||||||
Series 2016, Ref. RB(d) | 4.00% | 06/01/2026 | 500 | 523,900 | ||||||||
California (State of) Statewide Communities Development Authority (Loma Linda University Medical Center); Series 2018 A, RB(d) | 5.25% | 12/01/2038 | 1,790 | 1,963,916 | ||||||||
California (State of) Statewide Communities Development Authority (NCCD—Hooper Street LLC—California College of the Arts); Series 2019, College Housing RB(d) | 5.00% | 07/01/2029 | 900 | 994,311 | ||||||||
California County Tobacco Securitization Agency (The) (Los Angeles County Securitization Corp.); Series 2006, Tobacco Settlement Conv. Asset-Backed RB | 5.60% | 06/01/2036 | 1,000 | 1,000,530 | ||||||||
California County Tobacco Securitization Agency (The) (Sonoma County Securitization Corp.); Series 2005, Ref. Tobacco Settlement Asset-Backed RB | 5.13% | 06/01/2038 | 90 | 90,210 | ||||||||
Inland Empire Tobacco Securitization Authority; Series 2007 A, Tobacco Settlement RB | 4.63% | 06/01/2021 | 265 | 264,918 | ||||||||
San Diego Tobacco Settlement Revenue Funding Corp.; Series 2018 C, Ref. Tobacco Settlement Sub. RB | 4.00% | 06/01/2032 | 975 | 983,941 | ||||||||
12,949,661 | ||||||||||||
Colorado-7.33% | ||||||||||||
Amber Creak Metropolitan District; Series 2017 A, Ref. Limited Tax GO Bonds | 5.00% | 12/01/2037 | 750 | 745,433 | ||||||||
Arista Metroplitan District; | 4.38% | 12/01/2028 | 500 | 505,705 | ||||||||
Series 2018 A, Ref. & Improvement Limited Special Tax GO Bonds | 5.00% | 12/01/2038 | 1,240 | 1,261,402 | ||||||||
Arkansas River Power Authority; Series 2006, Power Improvement RB(f) | 5.88% | 10/01/2021 | 1,000 | 1,062,040 | ||||||||
Centerra Metropolitan District No. 1 (In the City of Loveland); Series 2017, Ref. Special Tax Allocation RB(d) | 5.00% | 12/01/2029 | 1,500 | 1,585,965 | ||||||||
City & County of Denver CO Airport System Revenue; Series 2018 A, Sub. Airport System RB(e)(g) | 5.00% | 12/01/2029 | 1,500 | 1,796,595 | ||||||||
Clear Creek Station Metropolitan District No. 2; Series 2017 A, Ref. Limited Tax GO Bonds | 4.38% | 12/01/2032 | 790 | 791,098 | ||||||||
Colorado (State of) Health Facilities Authority (Frasier Meadows Retirement Community); | 5.00% | 05/15/2025 | 525 | 572,171 | ||||||||
Series 2017 A, Ref. Hospital RB | 5.00% | 05/15/2026 | 475 | 520,595 | ||||||||
Colorado (State of) Health Facilities Authority (Sunny Vista Living Center); Series 2015 A, Ref. RB(d) | 5.00% | 12/01/2025 | 150 | 152,658 | ||||||||
Colorado (State of) Regional Transportation District (Denver Transit Partners Eagle P3); Series 2010, Private Activity RB | 6.50% | 01/15/2030 | 1,500 | 1,554,255 | ||||||||
Colorado International Center Metropolitan District No. 14; Series 2018, Ref. & Improvement Limited Tax GO Bonds | 5.63% | 12/01/2032 | 1,000 | 1,050,760 | ||||||||
Copperleaf Metropolitan District No. 2; Series 2015, Ref. Unlimited Tax GO Bonds | 5.25% | 12/01/2030 | 500 | 522,765 | ||||||||
Cornerstar Metropolitan District; Series 2017 A, Ref. Limited Tax GO Bonds | 3.50% | 12/01/2021 | 178 | 180,035 | ||||||||
Denver (City & County of); Series 2016, Ref. Airport System Floating Rate RB (1 mo. USD LIBOR + 0.86%)(a)(b) | 2.60% | 11/15/2019 | 880 | 881,082 | ||||||||
Denver (City & County of) (United Airlines, Inc.); Series 2017, Ref. Special Facilities Airport RB(e) | 5.00% | 10/01/2032 | 1,500 | 1,594,710 | ||||||||
Denver Gateway Center Metropolitan District; Series 2018 A, Limited Tax GO Bonds | 5.50% | 12/01/2038 | 1,375 | 1,407,051 | ||||||||
Gardens on Havana Metropolitan District No. 3 (The); Series 2017 A, Special RB | 3.63% | 12/01/2021 | 703 | 714,663 | ||||||||
Godding Hollow Metropolitan District (In The Town of Frederick); Series 2018, Limited Tax GO Bonds | 6.50% | 12/01/2034 | 1,000 | 1,010,150 | ||||||||
Grandby Ranch Metropolitan District; Series 2018, Ref. Limited Tax GO Bonds(d) | 4.88% | 12/01/2028 | 965 | 962,337 | ||||||||
Neu Towne Metropolitan District; Series 2018 A, Ref. & Improvement Limited Tax GO Bonds | 5.13% | 12/01/2031 | 1,500 | 1,473,060 | ||||||||
North Park Metropolitan District No. 1; Series 2018A-2, Special RB | 5.13% | 12/01/2028 | 1,500 | 1,547,745 | ||||||||
Plaza Metropolitan District No. 1; Series 2013, Ref. Tax Allocation RB(d) | 5.00% | 12/01/2040 | 1,465 | 1,508,159 | ||||||||
Prairie Center Metropolitan District No. 3; Series 2017 A, Ref. Limited Property Tax Supported RB(d) | 4.13% | 12/15/2027 | 965 | 970,182 | ||||||||
Solaris Metropolitan District No. 3; Series 2016 A, Ref. Limited Tax GO Bonds | 5.00% | 12/01/2036 | 1,000 | 1,019,410 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Short Duration High Yield Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
Colorado-(continued)
| ||||||||||||||
Southlands Metropolitan District No. 1; | 5.00% | 12/01/2037 | $ 100 | $ | 106,172 | |||||||||
Series 2017A-2, Unlimited Tax GO Bonds | 5.00% | 12/01/2037 | 200 | 212,344 | ||||||||||
Sterling Ranch Community Authority Board; Series 2017 A, Sr. Supported and Special RB | 5.00% | 12/01/2030 | 1,750 | 1,775,147 | ||||||||||
Villages at Castle Rock Metropolitan District No. 6 (Cobblestone Ranch); Series 2007, CAB Limited Tax GO Bonds(h) | 0.00% | 12/01/2037 | 1,487 | 408,345 | ||||||||||
27,892,034 | ||||||||||||||
Connecticut-1.19% | ||||||||||||||
Connecticut (State of); Series 2018 C, Unlimited Tax GO Bonds | 5.00% | 06/15/2027 | 1,000 | 1,164,300 | ||||||||||
Hamden (Town of) (Whitney Center); Series 2009 A, Facility RB | 7.63% | 01/01/2030 | 3,280 | 3,357,769 | ||||||||||
4,522,069 | ||||||||||||||
Delaware-0.75% | ||||||||||||||
Millsboro (Town of), Delaware (Plantation Lakes Special Development District); Series 2018, Special Obligation Bonds(d) | 5.00% | 07/01/2028 | 2,730 | 2,847,090 | ||||||||||
District of Columbia-0.78% | ||||||||||||||
District of Columbia (Ingleside at Rock Creek); | 4.13% | 07/01/2027 | 1,365 | 1,383,305 | ||||||||||
Series 2017 A, RB | 5.00% | 07/01/2032 | 1,500 | 1,575,960 | ||||||||||
2,959,265 | ||||||||||||||
Florida-2.06% | ||||||||||||||
Cape Coral (City of) Health Facilities Authority (Gulf Care Inc.); | 3.75% | 07/01/2019 | 495 | 495,361 | ||||||||||
Series 2015, Ref. Sr. Housing RB(d) | 5.88% | 07/01/2040 | 250 | 264,213 | ||||||||||
Capital Trust Agency Inc.(H-Bay Ministries, Inc.- Superior Residences); | 4.00% | 07/01/2028 | 750 | 744,382 | ||||||||||
Series 2018 B, Sr. Living RB | 4.25% | 07/01/2033 | 625 | 606,700 | ||||||||||
Capital Trust Agency Inc. (Sarasota-Manatee Jewish Housing Council, Inc.); Series 2017, Ref. Retirement Facility RB(d) | 5.00% | 07/01/2027 | 1,000 | 1,063,680 | ||||||||||
Florida Development Finance Corp. (Brightline Passenger Rail); Series 2017, Surface Transportation Facilitiy RB(a)(d)(e) | 5.63% | 01/01/2028 | 1,000 | 1,031,360 | ||||||||||
Lake (County of) Florida (Lakeside at Waterman Village); Series 2018 A, Retirement Community RB(d) | 10.00% | 10/31/2023 | 750 | 750,030 | ||||||||||
Lake Helen (City of) (Ivy Hawn Charter School of the Arts); Series 2018 A, Educational Facilities RB(d) | 5.00% | 07/15/2028 | 600 | 615,990 | ||||||||||
Lee (County of) Industrial Development Authority (Cypress Cove Healthpark); Series 2012, Ref. RB | 4.75% | 10/01/2022 | 260 | 273,416 | ||||||||||
Miami-Dade (County of) Florida Industrial Development Authority (Waste Management, Inc.); | ||||||||||||||
Series 2018 B, Solid Waste Disposal Floating Rate RB (SIFMA Municipal Swap Index + 0.80%)(a)(b)(e) | 2.54% | 11/01/2021 | 1,500 | 1,500,360 | ||||||||||
Seminole (County of) Industrial Development Authority (Legacy Pointe at UCF); Series 2016 A, RB(d) | 10.00% | 12/28/2021 | 400 | 490,356 | ||||||||||
7,835,848 | ||||||||||||||
Georgia-1.16% | ||||||||||||||
Macon-Bibb (County of) Urban Development Authority (Academy for Classical Education, Inc.); Series 2017 A, RB(d) | 5.00% | 06/15/2027 | 500 | 501,305 | ||||||||||
Main Street Natural Gas, Inc.; Series 2018 B, Gas Supply Floating Rate RB (1 mo. USD LIBOR + 0.75%)(a)(b) | 2.42% | 09/01/2023 | 2,865 | 2,840,533 | ||||||||||
Marietta (City of) Developing Authority (Life University, Inc.); Series 2017 A, Ref. University Facilities RB(d) | 5.00% | 11/01/2023 | 1,000 | 1,084,040 | ||||||||||
4,425,878 | ||||||||||||||
Idaho-0.26% | ||||||||||||||
Idaho (State of) Health Facilities Authority (Valley Vista Care Corp.); Series 2017 A, Ref. RB | 4.00% | 11/15/2027 | 1,000 | 1,008,350 | ||||||||||
Illinois-11.40% | ||||||||||||||
Aurora (City of) (East River Area TIF No. 6); Series 2018 A, Ref. Tax Increment Allocation RB | 5.00% | 12/30/2027 | 1,335 | 1,346,962 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Short Duration High Yield Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||||
Illinois-(continued) | ||||||||||||||||
Aurora (City of) (River City TIF No. 3); Series 2018 B, Ref. Tax Increment Allocation RB | 4.50 | % | 12/30/2023 | $1,000 | $ 1,004,810 | |||||||||||
Bartlett (Village of) (Quarry Redevelopment); Series 2016, Ref. Sr. Lien Tax Increment Allocation RB | 4.00 | % | 01/01/2024 | 1,165 | 1,137,949 | |||||||||||
Chicago (City of); | 5.00 | % | 01/01/2020 | 200 | 204,962 | |||||||||||
Series 2009 C, Unlimited Tax GO Bonds | 4.60 | % | 01/01/2025 | 655 | 656,323 | |||||||||||
Series 2009 D, Unlimited Tax GO Bonds | 5.00 | % | 01/01/2020 | 100 | 100,241 | |||||||||||
Series 2010 A, Ref. Unlimited Tax GO Bonds | 4.00 | % | 01/01/2022 | 110 | 112,016 | |||||||||||
Series 2017 A, Ref. Unlimited Tax GO Bonds | 5.63 | % | 01/01/2029 | 1,000 | 1,137,700 | |||||||||||
Series 2017 A, Ref. Unlimited Tax GO Bonds | 5.75 | % | 01/01/2034 | 1,500 | 1,679,055 | |||||||||||
Chicago (City of) Board of Education; | 5.00 | % | 12/01/2041 | 205 | 206,023 | |||||||||||
Series 2017 C, Ref. Dedicated Unlimited Tax GO Bonds | 5.00 | % | 12/01/2024 | 1,000 | 1,064,960 | |||||||||||
Series 2018 C, Ref. Unlimited Tax GO Bonds | 5.00 | % | 12/01/2023 | 2,000 | 2,116,800 | |||||||||||
Series 2018 C, Ref. Unlimited Tax GO Bonds | 5.00 | % | 12/01/2026 | 2,000 | 2,143,720 | |||||||||||
Series 2018 E, Educational Purpose TAN, Floating Rate (1 mo. USD LIBOR + 0.67%)(a)(b)(d) | 2.63 | % | 03/29/2019 | 2,000 | 2,000,000 | |||||||||||
Hillside (Village of) (Mannheim Redevelopment); | 5.00 | % | 01/01/2024 | 1,480 | 1,520,448 | |||||||||||
Series 2018, Sr. Lien Tax Increment Allocation RB | 5.00 | % | 01/01/2030 | 2,195 | 2,223,206 | |||||||||||
Illinois (State of); | 6.00 | % | 11/01/2026 | 1,000 | 1,149,640 | |||||||||||
Series 2013, GO Bonds | 5.50 | % | 07/01/2033 | 1,500 | 1,584,825 | |||||||||||
Series 2014, Unlimited Tax GO Bonds | 5.00 | % | 05/01/2021 | 860 | 900,704 | |||||||||||
Series 2017 D, Unlimited Tax GO Bonds | 5.00 | % | 11/01/2023 | 1,500 | 1,604,430 | |||||||||||
Series 2017 D, Unlimited Tax GO Bonds(g)(j) | 5.00 | % | 11/01/2023 | 2,250 | 2,406,645 | |||||||||||
Series 2018 A, Unlimited Tax GO Bonds | 6.00 | % | 05/01/2025 | 2,500 | 2,836,325 | |||||||||||
Illinois (State of) Finance Authority (Intrinsic Schools - Belmont School); Series 2015, Charter School RB(d) | 5.25 | % | 12/01/2025 | 400 | 408,840 | |||||||||||
Illinois (State of) Finance Authority (Lutheran Home & Services); | 5.00 | % | 05/15/2022 | 330 | 338,069 | |||||||||||
Series 2012, Ref. RB | 5.75 | % | 05/15/2046 | 1,500 | 1,531,845 | |||||||||||
Illinois (State of) Finance Authority (Montgomery Place); Series 2017, Ref. RB | 5.00 | % | 05/15/2024 | 1,115 | 1,185,468 | |||||||||||
Illinois (State of) Finance Authority (Park Place of Elmhurst); | 6.20 | % | 05/15/2030 | 685 | 635,344 | |||||||||||
Series 2016 A, RB | 6.33 | % | 05/15/2048 | 336 | 299,442 | |||||||||||
Series 2016 B, RB | 5.63 | % | 05/15/2020 | 189 | 179,094 | |||||||||||
Illinois (State of) Finance Authority (Peace Village); Series 2013, RB | 5.25 | % | 08/15/2023 | 720 | 734,054 | |||||||||||
Illinois (State of) Finance Authority (Plymouth Place); | 2.75 | % | 05/15/2019 | 395 | 395,225 | |||||||||||
Series 2015, Ref. RB | 5.00 | % | 05/15/2025 | 250 | 267,125 | |||||||||||
Illinois (State of) Finance Authority (Roosevelt University); Series 2007, RB | 5.50 | % | 04/01/2037 | 2,000 | 1,999,960 | |||||||||||
Illinois (State of) Finance Authority (Three Crowns Park); Series 2017, Ref. RB | 4.00 | % | 02/15/2027 | 1,795 | 1,803,580 | |||||||||||
Illinois (State of) Metropolitan Pier & Exposition Authority (McCormick Place Expansion); Series 2012 B, RB | 5.00 | % | 12/15/2020 | 545 | 565,563 | |||||||||||
Manhattan (Village of) Special Service AreaNo. 2004-1 (Brookstone Springs); Series 2015, Ref. Sr. Lien Special Tax RB | 4.25 | % | 03/01/2024 | 371 | 372,109 | |||||||||||
Regional Transportation Authority; Series 2018 B, RB(g) | 5.00 | % | 06/01/2030 | 3,000 | 3,525,960 | |||||||||||
43,379,422 | ||||||||||||||||
Indiana-0.97% | ||||||||||||||||
Allen (County of) Economic Development (StoryPoint Fort Wayne); Series 2017, | 6.63 | % | 01/15/2034 | 500 | 526,350 | |||||||||||
Carmel (City of) (Barrington Carmel); Series 2012 A, RB | 7.00 | % | 11/15/2027 | 1,120 | 896,000 | |||||||||||
Indiana (State of) Finance Authority (Irvington Community School); Series 2018 A, Ref. Educational Facilities RB(d) | 5.50 | % | 07/01/2028 | 750 | 771,697 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Short Duration High Yield Municipal Fund |
Interest Rate | Maturity Date | Principal (000) | Value | |||||||||||
Indiana-(continued) | ||||||||||||||
Indiana Bond Bank; Series 2007B-1, Special Program Gas Floating Rate RB (3 mo. USD LIBOR + 0.97%)(b) | 2.84 | % | 10/15/2022 | $1,500 | $ | 1,500,180 | ||||||||
3,694,227 | ||||||||||||||
Iowa-1.29% | ||||||||||||||
Iowa (State of) Finance Authority (Iowa Fertilizer Co.); | 5.25 | % | 12/01/2025 | 1,000 | 1,061,420 | |||||||||
Series 2013, Midwestern Disaster Area RB(d) | 5.88 | % | 12/01/2026 | 460 | 483,382 | |||||||||
Series 2013, Ref. Midwestern Disaster Area RB(a) | 5.25 | % | 12/01/2033 | 1,540 | 1,603,694 | |||||||||
Iowa (State of) Finance Authority (Iowa Health System); Series 2018, Ref. Floating Rate RB (SIFMA Municipal Swap Index + 0.58%)(a)(b)(d) | 2.32 | % | 01/04/2024 | 550 | 550,011 | |||||||||
Iowa (State of) Finance Authority (Lifespace Communities Inc.); Series 2018 A, RB | 4.13 | % | 05/15/2038 | 1,250 | 1,214,088 | |||||||||
4,912,595 | ||||||||||||||
Kansas-1.23% | ||||||||||||||
Lenexa (City of) (Lakeview Village, Inc.); Series 2018 A, Ref. Health Care Facilities RB | 5.00 | % | 05/15/2027 | 1,440 | 1,559,592 | |||||||||
Wichita (City of) (Kansas Masonic Home); | 4.25 | % | 12/01/2024 | 500 | 508,900 | |||||||||
Series2016II-A, Health Care Facilities RB | 5.00 | % | 12/01/2031 | 550 | 565,961 | |||||||||
Series2016II-A, Health Care Facilities RB | 5.25 | % | 12/01/2036 | 1,000 | 1,034,620 | |||||||||
Wichita (City of) (Presbyterian Manors, Inc.); Series 2018 I, Ref. Health Care Facilities RB | 5.00 | % | 05/15/2028 | 935 | 995,195 | |||||||||
4,664,268 | ||||||||||||||
Kentucky-2.58% | ||||||||||||||
Ashland Kentucky (Ashland Hospital Corp. d/b/a King’s Daughters Medical Center); | 5.00 | % | 02/01/2029 | 1,000 | 1,110,110 | |||||||||
Series 2016 A, Ref. RB | 5.00 | % | 02/01/2030 | 555 | 612,204 | |||||||||
Christian (County of) (Jennie Stuart Medical Center, Inc.); Series 2016, Ref. Hospital RB | 5.00 | % | 02/01/2026 | 855 | 931,864 | |||||||||
Kentucky (State of) Economic Development Finance Authority (Masonic Home Independent Living II Inc.); Series 2016A, Ref. RB | 5.00 | % | 05/15/2021 | 765 | 795,447 | |||||||||
Kentucky (State of) Economic Development Finance Authority (Next Generation Kentucky Information Highway); Series 2015 A, Sr. RB | 5.00 | % | 07/01/2032 | 1,000 | 1,097,930 | |||||||||
Kentucky (State of) Economic Development Finance Authority (Owensboro Health, Inc.); Series 2015, Ref. Hospital RB | 5.00 | % | 06/01/2019 | 1,040 | 1,046,365 | |||||||||
Kentucky (State of) Economic Development Finance Authority (Owensboro Medical Health System, Inc.); | 5.00 | % | 06/01/2019 | 2,000 | 2,012,240 | |||||||||
Kentucky (State of) Economic Development Finance Authority (Rosedale Green); Series 2015, Ref. Health Care Facilities RB | 5.00 | % | 11/15/2025 | 600 | 612,774 | |||||||||
Kentucky (State of) Public Energy Authority; Series 2018 B, Gas Supply RB(a) | 4.00 | % | 01/01/2025 | 1,500 | 1,610,505 | |||||||||
9,829,439 | ||||||||||||||
Louisiana-1.25% | ||||||||||||||
Louisiana (State of) Local Government Environmental Facilities & Community Development Authority (Livingston Parish Gomesha Project); Series 2018, Ref. RB(d) | 5.38 | % | 11/01/2038 | 2,000 | 2,029,200 | |||||||||
Tobacco Settlement Financing Corp.; Series 2013 A, Ref. Asset-Backed RB | 5.25 | % | 05/15/2035 | 2,500 | 2,709,900 | |||||||||
4,739,100 | ||||||||||||||
Maine-0.52% | ||||||||||||||
Maine (State of) Health & Higher Educational Facilities Authority (Maine General Medical Center); | 5.00 | % | 07/01/2019 | 855 | 860,771 | |||||||||
Series 2011, RB | 7.50 | % | 07/01/2032 | 1,000 | 1,106,240 | |||||||||
1,967,011 | ||||||||||||||
Maryland-1.02% | ||||||||||||||
Baltimore (City of) (East Baltimore Research Park); Series 2017, Ref. Special Obligation RB | 4.00 | % | 09/01/2027 | 425 | 436,590 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Short Duration High Yield Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
Maryland-(continued) | ||||||||||||||
Howard (County of) (Downtown Columbia); Series 2017 A, Special Obligation Tax Allocation RB(d) | 4.00% | 02/15/2028 | $ 500 | $ | 508,495 | |||||||||
Howard (County of) (Vantage House Facility); | 5.00% | 04/01/2021 | 250 | 255,112 | ||||||||||
Series 2017, Ref. Retirement Community RB | 5.00% | 04/01/2021 | 375 | 382,650 | ||||||||||
Maryland (State of) Health & Higher Educational Facilities Authority | 5.00% | 07/01/2027 | 400 | 416,556 | ||||||||||
Maryland Economic Development Corp. (AFCO Cargo BWI II, LLC); Series 2017, Ref. Air Cargo RB(d)(e) | 4.00% | 07/01/2024 | 1,805 | 1,891,947 | ||||||||||
3,891,350 | ||||||||||||||
Massachusetts-0.20% | ||||||||||||||
Massachusetts (State of) Development Finance Agency (Lawrence General Hospital); Series 2017, Ref. RB | 5.00% | 07/01/2028 | 675 | 751,315 | ||||||||||
Michigan-2.65% | ||||||||||||||
Detroit (City of); | 5.00% | 04/01/2023 | 1,000 | 1,067,560 | ||||||||||
Series 2018, Unlimited Tax GO Bonds | 5.00% | 04/01/2026 | 1,000 | 1,092,220 | ||||||||||
Michigan (State of) Tobacco Settlement Finance Authority; Series 2007 A, Sr. Asset-Backed RB | 6.00% | 06/01/2048 | 2,400 | 2,364,600 | ||||||||||
Star International Academy; Series 2012, Ref. Public School Academy RB | 5.00% | 03/01/2033 | 2,000 | 2,042,020 | ||||||||||
Summit Academy North; Series 2016, Ref. Public School Academy RB | 4.00% | 11/01/2021 | 1,585 | 1,587,314 | ||||||||||
Waterford Township Economic Development Corp. (Canterbury Health Care, Inc.); Series 2016A, Ref. Limited Tax Obligation RB(d) | 5.00% | 07/01/2026 | 1,835 | 1,918,474 | ||||||||||
10,072,188 | ||||||||||||||
Minnesota-3.12% | ||||||||||||||
Brooklyn Park (City of) (Athlos Leadership Academy); Series 2015, Charter School Lease RB | 4.00% | 07/01/2020 | 170 | 169,796 | ||||||||||
Deephaven (City of) (Seven Hills Preparatory Academy); | 4.38% | 10/01/2027 | 250 | 245,350 | ||||||||||
Series 2017, Charter School Lease RB | 5.00% | 10/01/2037 | 1,000 | 992,790 | ||||||||||
Rochester (City of) (Homestead at Rochester, Inc.); Series 2015, Health Care & Housing RB | 5.00% | 12/01/2021 | 470 | 484,528 | ||||||||||
St. Louis Park (City of), Minnesota (Place Via Sol Project); Series 2018, Ref. RB(a)(d) | 6.00% | 07/01/2027 | 2,000 | 2,012,800 | ||||||||||
St. Paul (City of) Housing & Redevelopment Authority (Emerald Gardens); | 5.00% | 09/01/2026 | 1,000 | 1,031,380 | ||||||||||
Series 2012, Ref. Tax Increment Allocation RB | 5.00% | 03/01/2029 | 935 | 960,853 | ||||||||||
St. Paul (City of) Housing & Redevelopment Authority (High School for Recording Arts); Series 2015, Charter School Lease RB | 5.13% | 10/01/2023 | 300 | 305,307 | ||||||||||
St. Paul (City of) Housing & Redevelopment Authority (Hmong Academy); Series 2012 A, Charter School Lease RB | 5.50% | 09/01/2043 | 1,000 | 1,017,970 | ||||||||||
St. Paul (City of) Housing & Redevelopment Authority (Hmong College Prep Academy); Series 2016, Ref. Charter School Lease RB | 5.00% | 09/01/2026 | 1,000 | 1,063,520 | ||||||||||
St. Paul (City of) Housing & Redevelopment Authority (Rossy & Richard Shaller Family Sholom East Campus); | 4.00% | 10/01/2031 | 250 | 243,240 | ||||||||||
Series 2018, Ref. RB | 4.13% | 10/01/2033 | 250 | 243,440 | ||||||||||
St. Paul Park (City of) (Presbyterian Homes Bloomington); | 3.80% | 09/01/2029 | 350 | 358,547 | ||||||||||
Series 2017, Ref. Sr. Housing & Health Care RB | 3.90% | 09/01/2030 | 565 | 579,611 | ||||||||||
Series 2017, Ref. Sr. Housing & Health Care RB | 4.00% | 09/01/2031 | 585 | 601,854 | ||||||||||
Series 2017, Ref. Sr. Housing & Health Care RB | 4.00% | 09/01/2032 | 400 | 410,112 | ||||||||||
Series 2017, Ref. Sr. Housing & Health Care RB | 4.10% | 09/01/2033 | 500 | 512,855 | ||||||||||
West St. Paul (City of) (Walker Westwood Ridge Campus); Series 2017, Ref. Housing & Health Care Facilities RB | 4.00% | 11/01/2030 | 650 | 657,559 | ||||||||||
11,891,512 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Short Duration High Yield Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||
Mississippi-0.63% | ||||||||||||
Jackson (County of) Mississippi (Chevron U.S.A., Inc.); Series 1993, Ref. VRD RB(k) | 1.60% | 06/01/2023 | $2,400 | $ | 2,400,000 | |||||||
Missouri-2.86% | ||||||||||||
Boone (County of) (Boone Hospital Center); Series 2016, Ref. Hospital RB | 5.00% | 08/01/2028 | 1,685 | 1,846,810 | ||||||||
I-470 Western Gateway Transportation Development District; Series 2019 A, RB (d) | 4.50% | 12/01/2029 | 1,005 | 1,007,392 | ||||||||
Kansas City (City of) Industrial Development Authority; Series 2016A, Ref. Sales Tax RB(d) | 4.25% | 04/01/2026 | 495 | 498,901 | ||||||||
Kansas City (City of) Industrial Development Authority (Ward Parkway Center Community Improvement District); Series 2016A, Ref. Sr. Sales Tax RB(d) | 5.00% | 04/01/2036 | 2,000 | 2,015,320 | ||||||||
Kansas City (City of) Land Clearance for Redevelopment Authority (Convention Center Hotel); Series 2018 B, Tax Allocation RB(d) | 4.38% | 02/01/2031 | 1,000 | 1,009,900 | ||||||||
Kirkwood (City of) Industrial Development Authority (Aberdeen Heights); | 5.00% | 05/15/2024 | 1,500 | 1,630,515 | ||||||||
St. Louis (City of) Industrial Development Authority (Ballpark Village Development); | 3.88% | 11/15/2029 | 705 | 723,154 | ||||||||
St. Louis (County of) Industrial Development Authority (Friendship Village West County); | ||||||||||||
Series 2018 A, Senior Living Facilities RB | 5.00% | 09/01/2025 | 1,000 | 1,081,600 | ||||||||
Series 2018 A, Senior Living Facilities RB | 5.00% | 09/01/2026 | 1,000 | 1,085,740 | ||||||||
10,899,332 | ||||||||||||
Nebraska-0.54% | ||||||||||||
Central Plains Energy Project; Series 2014, Gas Supply RB(a) | 5.00% | 12/01/2019 | 2,000 | 2,042,100 | ||||||||
Nevada-0.42% | ||||||||||||
Director of the State of Nevada Department of Business & Industry (Somerset Academy); Series 2018 A, RB(d) | 4.50% | 12/15/2029 | 750 | 756,503 | ||||||||
Nevada (State of) Department of Business & Industry (Doral Academy of Nevada); | ||||||||||||
Series 2017 A, RB(d) | 5.00% | 07/15/2027 | 335 | 351,914 | ||||||||
Series 2017 A, RB(d) | 5.00% | 07/15/2037 | 500 | 507,865 | ||||||||
1,616,282 | ||||||||||||
New Hampshire-0.39% | ||||||||||||
National Finance Authority (Convanta); Series 2018 A, Ref. Resource Recovery | 4.00% | 11/01/2027 | 1,500 | 1,498,845 | ||||||||
New Jersey-7.96% | ||||||||||||
New Jersey (State of) Economic Development Authority; | ||||||||||||
Series 2005N-1, Ref. School Facilities Construction RB (INS - NATL)(g)(i)(j) | 5.50% | 09/01/2022 | 3,000 | 3,313,710 | ||||||||
Series 2012 II, Ref. School Facilities Construction RB | 5.00% | 03/01/2023 | 1,500 | 1,606,455 | ||||||||
Series 2012, Ref. RB | 5.00% | 06/15/2025 | 600 | 644,682 | ||||||||
Series 2017 B, Ref. RB | 5.00% | 11/01/2023 | 1,500 | 1,663,095 | ||||||||
New Jersey (State of) Economic Development Authority (Continental Airlines, Inc.); | ||||||||||||
Series 1999, Special Facility RB(e) | 5.25% | 09/15/2029 | 3,000 | 3,259,020 | ||||||||
Series 2012, Special Facility RB(e) | 5.75% | 09/15/2027 | 200 | 220,230 | ||||||||
New Jersey (State of) Economic Development Authority (Paterson Charter School for Science and Technology Inc.); Series 2012 C, RB | 5.00% | 07/01/2022 | 390 | 389,735 | ||||||||
New Jersey (State of) Economic Development Authority (Paterson Charter School for Science and Technology, Inc.); Series 2012 C, RB | 5.00% | 07/01/2032 | 1,000 | 920,270 | ||||||||
New Jersey (State of) Economic Development Authority (School Facilities Construction); Series 2013, Ref. Floating Rate RB (SIFMA Municipal Swap Index + 1.60%)(b) | 3.34% | 03/01/2028 | 1,000 | 994,870 | ||||||||
New Jersey (State of) Higher Education Student Assistance Authority; | ||||||||||||
Series 2018 B, Ref. Sr. Student Loan RB(e) | 5.00% | 12/01/2026 | 1,000 | 1,161,630 | ||||||||
Series 2018 B, Ref. Sr. Student Loan RB(e) | 5.00% | 12/01/2027 | 1,000 | 1,171,090 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco Short Duration High Yield Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
New Jersey-(continued) | ||||||||||||||
New Jersey (State of) Transportation Trust Fund Authority; | ||||||||||||||
Series 2008 A, Transportation System CAB RB(h) | 0.00% | 12/15/2028 | $ 715 | $ 498,298 | ||||||||||
Series 2008 A, Transportation System CAB RB(h) | 0.00% | 12/15/2035 | 1,000 | 480,860 | ||||||||||
Series 2009 A, Transportation System CAB RB(h) | 0.00% | 12/15/2032 | 1,465 | 826,582 | ||||||||||
Series 2013 AA, Transportation Program RB | 5.25% | 06/15/2031 | 1,150 | 1,234,467 | ||||||||||
Series 2014, Transportation Program Floating Rate Notes (SIFMA Municipal Swap Index + 1.20%)(a)(b) | 2.94% | 12/15/2021 | 2,000 | 2,017,100 | ||||||||||
Series 2018 A, Ref. Federal Highway Reimbursement RN(g) | 5.00% | 06/15/2029 | 1,000 | 1,125,000 | ||||||||||
Series 2018 A, Ref. Federal Highway Reimbursement RN(g) | 5.00% | 06/15/2030 | 2,000 | 2,234,240 | ||||||||||
Series 2018 A, Ref. Federal Highway Reimbursement RN | 5.00% | 06/15/2031 | 2,000 | 2,219,620 | ||||||||||
Series 2018 A, Ref. RB | 5.00% | 12/15/2024 | 1,000 | 1,122,050 | ||||||||||
Salem (County of) Pollution Control Financing Authority (Chambers); Series 2014 A, Ref. PCR(e) | 5.00% | 12/01/2023 | 3,000 | 3,178,740 | ||||||||||
30,281,744 | ||||||||||||||
New York-4.81% | ||||||||||||||
Build NYC Resource Corp. (Pratt Paper Inc.); Series 2014, Ref. Waste Disposal | 3.75% | 01/01/2020 | 130 | 131,136 | ||||||||||
Metropolitan Transportation Authority; Subseries 2014D-2, Floating Rate RB (SIFMA Municipal Swap Index + 0.45%)(a)(b) | 2.19% | 11/15/2022 | 2,500 | 2,474,525 | ||||||||||
Nassau (County of) Industrial Development Agency (Amsterdam at Harborside); | ||||||||||||||
Series 2014 A, Continuing Care Retirement Community RB | 6.50% | 01/01/2032 | 1,000 | 1,023,630 | ||||||||||
Series 2014 B, Continuing Care Retirement Community RB | 5.50% | 07/01/2020 | 255 | 255,672 | ||||||||||
Nassau County Tobacco Settlement Corp.; Series2006A-2, Sr. Asset-Backed Conv. CAB RB(l) | 5.25% | 06/01/2026 | 1,000 | 1,000,160 | ||||||||||
New York & New Jersey (States of) Port Authority; Two Hundred Seventh Series 2018, Ref. Consolidated RB(e)(g) | 5.00% | 09/15/2029 | 2,250 | 2,692,665 | ||||||||||
New York (City of); | ||||||||||||||
Subseries 2012G-7, VRD Unlimited Tax GO Bonds(LOC-MUFG Bank, Ltd.)(k)(m) | 1.58% | 04/01/2042 | 3,050 | 3,050,000 | ||||||||||
Subseries 2015F-5, VRD Unlimited Tax GO Bonds(k) | 1.55% | 06/01/2044 | 650 | 650,000 | ||||||||||
New York Transportation Development Corp. (American Airlines, Inc.); Series 2016, Ref. Special Facilities RB(e) | 5.00% | 08/01/2026 | 2,900 | 3,038,185 | ||||||||||
Tompkins County Development Corp. (Tompkins Cortland Community College Foundation, Inc.); | ||||||||||||||
Series 2013 A, RB | 5.00% | 07/01/2027 | 1,000 | 1,011,550 | ||||||||||
Series 2013 A, RB | 5.00% | 07/01/2032 | 1,000 | 985,590 | ||||||||||
Triborough Bridge & Tunnel Authority (MTA Bridges and Tunnels); Series 2018 D, General Floating Rate RB (1 mo. USD SOFR + 0.50%)(a)(b) | 2.10% | 10/01/2020 | 2,000 | 2,002,220 | ||||||||||
18,315,333 | ||||||||||||||
North Dakota-0.27% | ||||||||||||||
Burleigh (County of) (University of Mary); Series 2016, Education Facilities RB | 4.38% | 04/15/2026 | 1,000 | 1,011,430 | ||||||||||
Ohio-4.81% | ||||||||||||||
Buckeye Tobacco Settlement Financing Authority; | ||||||||||||||
Series 2007A-2, Sr. Asset-Backed Turbo RB | 5.13% | 06/01/2024 | 800 | 742,240 | ||||||||||
Series 2007A-2, Sr. Asset-Backed Turbo RB | 5.38% | 06/01/2024 | 955 | 894,520 | ||||||||||
Series 2007A-2, Sr. Asset-Backed Turbo RB | 5.88% | 06/01/2030 | 3,975 | 3,752,519 | ||||||||||
Butler (County of) Port Authority (Storypoint Fairfield); Sr. Series 2017A-1, RB(d) | 6.25% | 01/15/2034 | 1,000 | 1,029,280 | ||||||||||
Cleveland (City of) (Continental Airlines, Inc.); Series 1998, Airport Special RB(e) | 5.38% | 09/15/2027 | 200 | 200,442 | ||||||||||
Cuyahoga (County of) (Metrohealth System); Series 2017, Ref. Hospital RB | 5.00% | 02/15/2031 | 2,500 | 2,747,750 | ||||||||||
Gallia (County of) (Holzer Health System Obligated Group); Series 2012, Ref. & Improvement Hospital Facilities RB | 8.00% | 07/01/2042 | 2,950 | 3,251,932 | ||||||||||
Lucas (County of), Ohio (ProMedica Healthcare System); Series 2018 A, Ref. Hospital RB | 5.00% | 11/15/2019 | 1,160 | 1,182,481 | ||||||||||
Muskingum (County of) (Genesis Healthcare System); Series 2013, Hospital Facilities RB | 5.00% | 02/15/2021 | 365 | 379,031 | ||||||||||
Ohio (State of) (Portsmouth Bypass); Series 2015, Private Activity RB(e) | 5.00% | 12/31/2025 | 340 | 378,053 | ||||||||||
Ohio (State of) Air Quality Development Authority (FirstEnergy Generation Corp.); Series 2009 D, Ref. PCR(a) | 4.25% | 09/15/2021 | 1,975 | 1,975,000 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 | Invesco Short Duration High Yield Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||
Ohio-(continued) | ||||||||||||
Ohio (State of) Air Quality Development Authority (Pratt Paper LLC); | ||||||||||||
Series 2017, Exempt Facility RB(d)(e) | 3.75% | 01/15/2028 | $1,250 | $ 1,278,087 | ||||||||
Series 2017, Exempt Facility RB(d)(e) | 4.25% | 01/15/2038 | 250 | 255,365 | ||||||||
Toledo-Lucas (County of) Port Authority (StoryPoint Waterville); Series 2016A-1, RB(d) | 6.13% | 01/15/2034 | 225 | 229,831 | ||||||||
18,296,531 | ||||||||||||
Oklahoma-1.28% | ||||||||||||
Comanche (County of) Hospital Authority; | ||||||||||||
Series 2012 A, Ref. RB | 5.00% | 07/01/2021 | 475 | 487,621 | ||||||||
Series 2015, Ref. RB | 5.00% | 07/01/2023 | 1,000 | 1,078,760 | ||||||||
Oklahoma (State of) Development Finance Authority (Inverness Village Community); Series 2012, Ref. Continuing Care Retirement Community RB(c) | 5.25% | 01/01/2022 | 375 | 243,750 | ||||||||
Payne (County of) Economic Development Authority (Epworth Living at the Ranch); Series2016B-2, RB | 4.75% | 11/01/2023 | 1,470 | 565,950 | ||||||||
Tulsa (City of) Municipal Airport Trust; Series 2000 B, Ref. RB(e) | 5.50% | 06/01/2035 | 2,000 | 2,140,840 | ||||||||
Tulsa (City of) Municipal Airport Trust (American Airlines Group, Inc.); Series 2015, Ref. RB(a)(e) | 5.00% | 06/01/2025 | 340 | 367,968 | ||||||||
4,884,889 | ||||||||||||
Pennsylvania-2.70% | ||||||||||||
Allentown Neighborhood Improvement Zone Development Authority (City Center); | ||||||||||||
Series 2018, Tax RB(d) | 5.00% | 05/01/2023 | 750 | 800,333 | ||||||||
Series 2018, Tax RB(d) | 5.00% | 05/01/2028 | 1,250 | 1,394,737 | ||||||||
Commonwealth Financing Authority; Series 2018, Tobacco Master Settlement Payment RB | 5.00% | 06/01/2026 | 1,000 | 1,170,730 | ||||||||
Cumberland (County of) Municipal Authority (Asbury Pennsylvania Obligated Group); Series 2010, RB | 6.00% | 01/01/2030 | 1,300 | 1,326,975 | ||||||||
Geisinger Authority (Geisinger Health System Foundation); Series 2013 A, VRD Health System RB(k) | 1.53% | 10/01/2043 | 2,000 | 2,000,000 | ||||||||
Montgomery (County of) Higher Education & Health Authority (Thomas Jefferson University); | ||||||||||||
Series 2018 C, Floating Rate RB (SIFMA Municipal Swap Index + 0.72%)(a)(b) | 2.46% | 09/01/2023 | 1,000 | 1,000,650 | ||||||||
Northampton (County of) Industrial Development Authority (Morningstar Senior Living, Inc.); Series 2012, RB | 5.00% | 07/01/2027 | 1,500 | 1,541,475 | ||||||||
Philadelphia (City of) Authority for Industrial Development (Wesley Enhanced Living Obligated Group); Series 2017, Ref. Sr. Living Facilities RB | 5.00% | 07/01/2032 | 1,000 | 1,040,680 | ||||||||
10,275,580 | ||||||||||||
Puerto Rico-6.96% | ||||||||||||
Children’s Trust Fund; | ||||||||||||
Series 2002, Tobacco Settlement Asset-Backed RB | 5.38% | 05/15/2033 | 850 | 858,220 | ||||||||
Series 2002, Tobacco Settlement Asset-Backed RB | 5.50% | 05/15/2039 | 3,220 | 3,253,005 | ||||||||
Puerto Rico (Commonwealth of); Series 2006A, Public Improvement Unlimited Tax GO Bonds (INS-AGC) (CPI RATE + 1.02%)(i)(n) | 3.48% | 07/01/2020 | 1,500 | 1,500,780 | ||||||||
Puerto Rico (Commonwealth of) Aqueduct & Sewer Authority; | ||||||||||||
Series 2008 A, Sr. Lien Conv. CAB RB(l) | 6.13% | 07/01/2024 | 3,000 | 3,067,500 | ||||||||
Series 2008 A, Sr. Lien RB | 6.00% | 07/01/2038 | 500 | 501,250 | ||||||||
Series 2008 A, Sr. Lien RB | 6.00% | 07/01/2044 | 1,000 | 1,002,500 | ||||||||
Series 2012 A, Sr. Lien RB | 5.00% | 07/01/2021 | 795 | 796,988 | ||||||||
Series 2012 A, Sr. Lien RB | 5.25% | 07/01/2029 | 2,880 | 2,872,800 | ||||||||
Series 2012 A, Sr. Lien RB | 5.25% | 07/01/2042 | 2,000 | 1,970,000 | ||||||||
Puerto Rico (Commonwealth of) Electric Power Authority; | 5.00% | 07/01/2023 | 1,500 | 1,509,675 | ||||||||
Series 2007 TT, RB | 5.00% | 07/01/2032 | 1,990 | 1,365,637 | ||||||||
Series 2007 TT, RB(c) | 5.00% | 07/01/2037 | 500 | 343,125 | ||||||||
Series 2007 VV, Ref. RB(INS-NATL)(i) | 5.25% | 07/01/2030 | 1,000 | 1,070,210 | ||||||||
Puerto Rico (Commonwealth of) Public Buildings Authority; Series 2007M-3, Ref. Government Facilities RB (INS - NATL)(i) | 6.00% | 07/01/2024 | 500 | 514,800 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 | Invesco Short Duration High Yield Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
Puerto Rico-(continued) | ||||||||||||||
Puerto Rico Sales Tax Financing Corp.; | ||||||||||||||
Series 2018A-1, CAB RB(h) | 0.00% | 07/01/2024 | $3,500 | $ 2,903,460 | ||||||||||
Series 2018A-1, CAB RB(h) | 0.00% | 07/01/2027 | 1,000 | 726,800 | ||||||||||
Series 2018A-1, RB | 4.50% | 07/01/2034 | 2,250 | 2,252,812 | ||||||||||
26,509,562 | ||||||||||||||
Rhode Island-0.15% | ||||||||||||||
Tobacco Settlement Financing Corp.; Series 2015 A, Ref. RB | 5.00% | 06/01/2026 | 500 | 554,110 | ||||||||||
South Carolina-0.47% | ||||||||||||||
South Carolina (State of) Jobs-Economic Development Authority (South Carolina Episcopal Home at Still Hopes); Series 2018 A, Ref. RB | 5.00% | 04/01/2027 | 1,655 | 1,779,655 | ||||||||||
Tennessee-2.00% | ||||||||||||||
Bristol (City of) Industrial Development Board (Pinnacle); | ||||||||||||||
Series 2016B, CAB Sales Tax RB(d)(h) | 0.00% | 12/01/2020 | 750 | 690,997 | ||||||||||
Series 2016B, CAB Sales Tax RB(d)(h) | 0.00% | 12/01/2021 | 250 | 218,575 | ||||||||||
Series 2016, Tax Increment Allocation RB | 4.25% | 06/01/2021 | 760 | 759,795 | ||||||||||
Memphis (City of) & Shelby (County of) Economic Development Growth Engine Industrial Development Board (Graceland); | ||||||||||||||
Series 2017 A, Ref. Sr. Tax Allocation Incremental RB | 4.75% | 07/01/2027 | 650 | 679,978 | ||||||||||
Series 2017 A, Ref. Sr. Tax Allocation Incremental RB | 5.50% | 07/01/2037 | 350 | 370,815 | ||||||||||
Metropolitan Development and Housing Agency (Fifth + Broadway Development); | ||||||||||||||
Series 2018, Tax Increment Development RB(d) | 4.50% | 06/01/2028 | 750 | 789,300 | ||||||||||
Series 2018, Tax Increment RB(d) | 5.13% | 06/01/2036 | 1,000 | 1,054,500 | ||||||||||
Nashville (City of) & Davidson (County of) Health and Educational Facilities Board of Metropolitan Government (Trousdale Roundation Properties); Series 2018 A, Sr. Living RB(d) | 5.25% | 04/01/2028 | 2,000 | 2,025,060 | ||||||||||
Shelby (County of) Health, Educational & Housing Facilities Board (Trezevant Manor); Series 2016 A, Ref. RB(d) | 5.00% | 09/01/2024 | 1,000 | 1,007,150 | ||||||||||
7,596,170 | ||||||||||||||
Texas-7.23% | ||||||||||||||
Arlington Higher Education Finance Corp. (Leadership Prep School); Series 2016A, Education RB | 5.00% | 06/15/2036 | 700 | 704,893 | ||||||||||
Clifton Higher Education Finance Corp. (International Leadership of Texas); Series 2018 D, Education RB | 5.75% | 08/15/2033 | 2,000 | 2,079,500 | ||||||||||
Guadalupe (County of) & Seguin (City of) Hospital Board of Managers; Series 2015, Ref. Hospital Mortgage RB | 5.00% | 12/01/2021 | 450 | 471,073 | ||||||||||
Houston (City of) Airport System (United Airlines, Inc. Airport Improvement); Series 2015 C, Ref. RB(e) | 5.00% | 07/15/2020 | 500 | 515,655 | ||||||||||
Houston (City of) Airport System (United Airlines, Inc. Terminal E); Series 2014, Ref. RB(e) | 4.75% | 07/01/2024 | 1,885 | 2,032,464 | ||||||||||
Houston (City of) Airport System (United Airlines, Inc. Terminal Improvement); Series 2015B-2, Ref. RB(e) | 5.00% | 07/15/2020 | 1,000 | 1,033,490 | ||||||||||
Mclendon-Chisholm (City of) (Sonoma Public Improvement Distribution Phase); Series 2015, Special Assessment RB | 5.38% | 09/15/2035 | 450 | 448,771 | ||||||||||
Mesquite Health Facility Development Corp. (Christian Care Centers, Inc.); Series 2016, Ref. Retirement Facility RB | 5.00% | 02/15/2035 | 650 | 658,352 | ||||||||||
Mission Economic Development Corp. (Natgasoline); Series 2018, Ref. Sr. Lien | 4.63% | 10/01/2031 | 2,500 | 2,561,725 | ||||||||||
New Hope Cultural Education Facilities Corp. (Presbyterian Village North); Series 2018, Ref. Retirement Facility RB | 5.00% | 10/01/2024 | 1,650 | 1,735,041 | ||||||||||
New Hope Cultural Education Facilities Finance Corp. (Carillon Lifecare Community); Series 2016, Ref. Retirement Facility RB | 5.00% | 07/01/2036 | 1,500 | 1,549,110 | ||||||||||
New Hope Cultural Education Facilities Finance Corp. (Jubilee Academic Center); | 3.63% | 08/15/2022 | 800 | 794,480 | ||||||||||
Series 2017 S, Education RB(d) | 4.25% | 08/15/2027 | 610 | 609,128 | ||||||||||
New Hope Cultural Education Facilities Finance Corp. (MRC SeniorLiving-The Langford); Series 2016B-1, TEMPS 80SM RB | 3.25% | 11/15/2022 | 385 | 378,528 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 | Invesco Short Duration High Yield Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
Texas-(continued) | ||||||||||||||
Newark High Education Finance Corp. (Austin Achieve Public Schools, Inc.); | 4.25% | 06/15/2028 | $ 150 | $ | 151,686 | |||||||||
Series 2018, Education RB | 5.00% | 06/15/2033 | 150 | 153,171 | ||||||||||
Series 2018, Education RB | 5.00% | 06/15/2038 | 250 | 253,073 | ||||||||||
Port Beaumont Navigation District (Jefferson Energy Companies); Series 2016, Dock & Wharf Facility RB(a)(d)(e) | 7.25% | 02/13/2020 | 2,000 | 2,061,860 | ||||||||||
Red River Health Facilities Development Corp. (MRC Crossing); | 6.75% | 11/15/2024 | 200 | 223,762 | ||||||||||
Series 2014 A, Retirement Facility RB | 7.50% | 11/15/2034 | 100 | 111,883 | ||||||||||
Rowlett (City of) (Bayside Public Improvement District North Improvement Area); Series 2016, Special Assessment RB | 4.90% | 09/15/2024 | 335 | 319,888 | ||||||||||
Tarrant County Cultural Education Facilities Finance Corp. (Buckner Senior Living - Ventana); | 3.88% | 11/15/2022 | 750 | 747,540 | ||||||||||
Series 2017, TEMPS 65SM Retirement Facility RB | 4.50% | 11/15/2023 | 750 | 752,310 | ||||||||||
Tarrant County Cultural Education Facilities Finance Corp. (C.C. Young Memorial Home); Series 2017 A, Retirement Facility RB | 6.00% | 02/15/2031 | 1,000 | 1,070,300 | ||||||||||
Tarrant County Cultural Education Facilities Finance Corp. (MRC Stevenson Oaks); Series 2018 A, Retirement Community RN(d) | 10.00% | 03/15/2023 | 750 | 745,815 | ||||||||||
Temple (City of); Series 2018 A, Incremental RB(d) | 5.00% | 08/01/2028 | 1,000 | 1,092,690 | ||||||||||
Texas Municipal Gas Acquisition & Supply Corp. I; Series 2008 D, Sr. Lien Gas Supply RB | 6.25% | 12/15/2026 | 3,255 | 3,765,417 | ||||||||||
Travis County Cultural Education Facilities Finance Corp. (Wayside Schools); Series 2012 A, Education RB | 5.00% | 08/15/2027 | 500 | 513,650 | ||||||||||
27,535,255 | ||||||||||||||
Utah-1.84% | ||||||||||||||
Murray (City of) (IHC Health Services, Inc.); Series 2003 D, Hospital VRD RB(k) | 1.50% | 03/05/2019 | 3,600 | 3,600,000 | ||||||||||
Salt Lake City (City of); Series 2017 A, Airport RB(e)(g) | 5.00% | 07/01/2036 | 3,000 | 3,397,680 | ||||||||||
6,997,680 | ||||||||||||||
Virgin Islands-1.48% | ||||||||||||||
Virgin Islands (Government of) Port Authority; | 5.00% | 09/01/2022 | 1,320 | 1,362,200 | ||||||||||
Series 2014 A, Ref. Marine RB(e) | 5.00% | 09/01/2023 | 1,000 | 1,031,160 | ||||||||||
Virgin Islands (Government of) Public Finance Authority (Matching Fund Loan Note); Series 2010 A, Sr. Lien RB | 5.00% | 10/01/2029 | 1,870 | 1,818,575 | ||||||||||
Virgin Islands (Government of) Water & Power Authority; Series 2010 B, Electric System RB | 4.00% | 07/01/2021 | 1,500 | 1,436,250 | ||||||||||
5,648,185 | ||||||||||||||
Virginia-0.27% | ||||||||||||||
Hanover (County of) Economic Development Authority (Covenant Woods); Series 2018, Ref. Care Facility RB | 5.00% | 07/01/2038 | 250 | 264,815 | ||||||||||
Peninsula Town Center Community Development Authority; Series 2018, Ref. Special Obligation RB(d) | 4.50% | 09/01/2028 | 725 | 756,690 | ||||||||||
1,021,505 | ||||||||||||||
Washington-1.28% | ||||||||||||||
Seattle (City of); Series 2018C-2, Ref. Municipal Light & Power Floating Rate RB (SIFMA Municipal Swap Index + 0.49%)(a)(b) | 2.23% | 11/01/2023 | 2,000 | 2,001,980 | ||||||||||
Washington (State of) Health Care Facilities Authority (Catholic Health Initiatives); Series 2013, Floating Rate RB (SIFMA Municipal Swap Index + 1.40%)(a)(b) | 3.14% | 01/01/2025 | 1,000 | 1,017,040 | ||||||||||
Washington (State of) Housing Finance Commission (Judson Park); | 3.70% | 07/01/2023 | 445 | 445,592 | ||||||||||
Series 2018, Ref.Non-profit RB(d) | 5.00% | 07/01/2038 | 385 | 398,490 | ||||||||||
Washington (State of) Housing Finance Commission (The Hearthstone); Series 2018 A, Ref.Non-Profit RB(d) | 4.50% | 07/01/2028 | 965 | 990,100 | ||||||||||
4,853,202 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 | Invesco Short Duration High Yield Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
West Virginia-0.77% | ||||||||||||||
Harrison (County of) Commission (Charles Pointe No. 2); Series 2008 A, Ref. Tax Increment Allocation RB | 6.50% | 06/01/2023 | $ 670 | $ | 661,303 | |||||||||
Monongalia (County of) Commission Special District (University Town Centre Economic Opportunity Development District); Series 2017 A, Ref. Excise Tax & Improvement RB(d) | 4.50% | 06/01/2027 | 975 | 968,312 | ||||||||||
West Virginia (State of) Economic Development Authority (Entsorga West Virginia LLC); | 6.75% | 02/01/2026 | 1,000 | 964,720 | ||||||||||
Series 2018, Solid Waste Disposal Facilities RB(d)(e) | 8.75% | 02/01/2036 | 320 | 322,045 | ||||||||||
2,916,380 | ||||||||||||||
Wisconsin-5.60% | ||||||||||||||
Public Finance Authority (American Dream at Meadowlands); | 6.25% | 08/01/2027 | 2,000 | 2,165,520 | ||||||||||
Series 2017, Limited Obligation Grant RB(d) | 6.75% | 08/01/2031 | 500 | 544,815 | ||||||||||
Public Finance Authority (WhiteStone); Series 2017, Ref. Retirement Facility | 4.00% | 03/01/2027 | 845 | 861,224 | ||||||||||
Wisconsin (State of) Health & Educational Facilities Authority (American Baptist Homes of the Midwest Obligated Group); Series 2017, Ref. RB | 5.00% | 08/01/2027 | 500 | 524,100 | ||||||||||
Wisconsin (State of) Health & Educational Facilities Authority (Benevolent Corp. Cedar Community); Series 2017, Ref. RB | 5.00% | 06/01/2028 | 1,205 | 1,300,159 | ||||||||||
Wisconsin (State of) Public Finance Authority (Alabama Proton Therapy Center); Series 2017 A, RB(d) | 6.25% | 10/01/2031 | 2,000 | 2,109,240 | ||||||||||
Wisconsin (State of) Public Finance Authority (Bancroft Neurohealth); | 5.00% | 06/01/2025 | 650 | 682,988 | ||||||||||
Series 2016A, RB(d) | 5.00% | 06/01/2026 | 1,005 | 1,051,501 | ||||||||||
Wisconsin (State of) Public Finance Authority (Delray Beach Radiation Therapy Center); Series 2017 A, Sr. RB(d) | 5.75% | 11/01/2024 | 1,500 | 1,528,650 | ||||||||||
Wisconsin (State of) Public Finance Authority (Glenridge Palmer Ranch); Series 2011 A, Continuing Care Retirement Community RB(d) | 7.00% | 06/01/2020 | 45 | 46,318 | ||||||||||
Wisconsin (State of) Public Finance Authority (Maryland Proton Treatment Center); Series 2018A-1, Sr. RB(d) | 6.13% | 01/01/2033 | 2,000 | 2,103,540 | ||||||||||
Wisconsin (State of) Public Finance Authority (Mary’s Woods at Marylhurst); Series 2017 A, Ref. TEMPS 85SM Senior Living RB(d) | 3.95% | 11/15/2024 | 1,250 | 1,255,762 | ||||||||||
Wisconsin (State of) Public Finance Authority (Million Air Two LLC General Aviation Facilities); Series 2017 B, Ref. Special Facilities RB(d)(e) | 6.00% | 06/01/2022 | 2,835 | 2,843,420 | ||||||||||
Wisconsin (State of) Public Finance Authority (Prime Healthcare Foundation, Inc.); Series 2018 A, RB | 5.00% | 12/01/2027 | 1,395 | 1,485,926 | ||||||||||
Wisconsin (State of) Public Finance Authority (Wittenberg University); Series 2016, Higher Education Facility RB(d) | 4.00% | 12/01/2021 | 1,320 | 1,337,741 | ||||||||||
Wisconsin Health & Educational Facilities Authority (American Baptist Homes of the Midwest Obligated Group); Series 2017, Ref. RB | 3.50% | 08/01/2022 | 1,500 | 1,491,870 | ||||||||||
21,332,774 | ||||||||||||||
TOTAL INVESTMENTS IN SECURITIES(o)-103.23% (Cost $388,543,164) | 392,899,179 | |||||||||||||
FLOATING RATE NOTE OBLIGATIONS-(3.16)% | ||||||||||||||
Notes with interest and fee rates ranging from 2.28% to 2.56% at 02/28/2019 and contractual maturities of collateral ranging from 09/01/2022 to 07/01/2036 (See Note 1J)(p) | (12,010,000 | ) | ||||||||||||
OTHER ASSETS LESS LIABILITIES-(0.07)% | (269,911 | ) | ||||||||||||
NET ASSETS -100.00% | $ | 380,619,268 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 | Invesco Short Duration High Yield Municipal Fund |
Abbreviations:
AGC | - Assured Guaranty Corp. | |
CAB | - Capital Appreciation Bonds | |
Conv. | - Convertible | |
CPI | - Consumer Price Index | |
GO | - General Obligation | |
INS | - Insurer | |
LIBOR | - London Interbank Offered Rate | |
NATL | - National Public Finance Guarantee Corp. | |
PCR | - Pollution Control Revenue Bonds | |
RB | - Revenue Bonds | |
Ref. | - Refunding | |
RN | - Revenue Notes | |
SIFMA | - Securities Industry and Financial Markets Association | |
SOFR | - Secured Overnight Financing Rate | |
Sr. | - Senior | |
Sub. | - Subordinated | |
TEMPS | -Tax-Exempt Mandatory Paydown Securities | |
USD | - U.S. Dollar | |
VRD | - Variable Rate Demand |
Notes to Schedule of Investments:
(a) | Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put. |
(b) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2019. |
(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 28, 2019 was $660,215, which represented less than 1% of the Fund’s Net Assets. |
(d) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). 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 28, 2019 was $91,839,008, which represented 24.13% of the Fund’s Net Assets. |
(e) | Security subject to the alternative minimum tax. |
(f) | Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral. |
(g) | Underlying security related to TOB Trusts entered into by the Fund. See Note1J. |
(h) | Zero coupon bond issued at a discount. |
(i) | Principal and/or interest payments are secured by the bond insurance company listed. |
(j) | Security is subject to a reimbursement agreement which may require the Fund to pay amounts to a counterparty in the event of a significant decline in the market value of the security underlying the TOB Trusts. In case of a shortfall, the maximum potential amount of payments the Fund could ultimately be required to make under the agreement is $4,170,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security underlying the TOB Trusts. |
(k) | Demand security payable upon demand by the Fund at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically by the issuer or agent based on current market conditions. Rate shown is the rate in effect on February 28, 2019. |
(l) | Convertible CAB. The interest rate shown represents the coupon rate at which the bond will accrue at a specified future date. |
(m) | Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary. |
(n) | Interest rate is redetermined periodically based on an auction conducted by the auction agent. |
(o) | Entities may either issue, guarantee, back or otherwise enhance the credit quality of a security. The entities are not primarily responsible for the issuer’s obligation but may be called upon to satisfy issuer’s obligations. No concentration of any single entity was greater than 5% each. |
(p) | Floating rate note obligations related to securities held. The interest and fee rates shown reflect the rates in effect at February 28, 2019. At February 28, 2019, the Fund’s investments with a value of $20,492,495 are held by TOB Trusts and serve as collateral for the $12,010,000 in the floating rate note obligations outstanding at that date. |
Portfolio Composition
By credit sector, based on total investments
as of February 28, 2019
Revenue Bonds | 89.6 | % | ||
General Obligation Bonds | 10.1 | |||
Pre-refunded Bonds | 0.3 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
17 | Invesco Short Duration High Yield Municipal Fund |
Open Futures Contracts(a) | ||||||||||||||||||||
Short Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation | |||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
U.S. Treasury 5 Year Notes | 20 | June-2019 | $ | (2,296,202 | ) | $ | 4,952 | $ 4,952 | ||||||||||||
U.S. Treasury 10 Year Notes | 116 | June-2019 | (14,193,412 | ) | 41,412 | 41,412 | ||||||||||||||
Total Futures Contracts | $ | 46,364 | $46,364 |
(a) | Futures contracts collateralized by $200,000 cash held with Goldman Sachs & Co, the futures commission merchant. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
18 | Invesco Short Duration High Yield Municipal Fund |
Statement of Assets and Liabilities
February 28, 2019
(Unaudited)
Assets: | ||||
Investments in securities, at value | $392,899,179 | |||
Other investments: | ||||
Variation margin receivable - futures contracts | 27,718 | |||
Deposits with brokers: | ||||
Cash collateral - exchange-traded futures contracts | 200,000 | |||
Cash | 76,017 | |||
Receivable for: | ||||
Investments sold | 196,542 | |||
Fund shares sold | 866,107 | |||
Fund expenses absorbed | 12,497 | |||
Interest | 4,390,151 | |||
Investments matured, at value | 683,750 | |||
Investment for trustee deferred compensation and retirement plans | 10,332 | |||
Other assets | 50,954 | |||
Total assets | 399,413,247 | |||
Liabilities: | ||||
Floating rate note obligations | 12,010,000 | |||
Payable for: | ||||
Investments purchased | 6,121,790 | |||
Dividends | 249,619 | |||
Fund shares reacquired | 196,266 | |||
Accrued fees to affiliates | 110,037 | |||
Accrued trustees’ and officers’ fees and benefits | 3,558 | |||
Accrued other operating expenses | 92,377 | |||
Trustee deferred compensation and retirement plans | 10,332 | |||
Total liabilities | 18,793,979 | |||
Net assets applicable to shares outstanding | $380,619,268 | |||
Net assets consist of: | ||||
Shares of beneficial interest | $377,762,580 | |||
Distributable earnings | 2,856,688 | |||
$380,619,268 |
Net Assets: | ||||
Class A | $ | 169,334,330 | ||
Class C | $ | 42,847,909 | ||
Class Y | $ | 155,684,875 | ||
Class R5 | $ | 10,501 | ||
Class R6 | $ | 12,741,653 | ||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 16,175,435 | |||
Class C | 4,099,422 | |||
Class Y | 14,858,941 | |||
Class R5 | 1,002 | |||
Class R6 | 1,214,933 | |||
Class A: | ||||
Net asset value per share | $ | 10.47 | ||
Maximum offering price per share | $ | 10.74 | ||
Class C: | ||||
Net asset value and offering price per share | $ | 10.45 | ||
Class Y: | ||||
Net asset value and offering price per share | $ | 10.48 | ||
Class R5: | ||||
Net asset value and offering price per share | $ | 10.48 | ||
Class R6: | ||||
Net asset value and offering price per share | $ | 10.49 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
19 | Invesco Short Duration High Yield Municipal Fund |
Statement of Operations
For the six months ended February 28, 2019
(Unaudited)
Investment income: | ||||
Interest | $ | 6,917,046 | ||
Expenses: | ||||
Advisory fees | 786,674 | |||
Administrative services fees | 38,143 | |||
Custodian fees | 1,131 | |||
Distribution fees: | ||||
Class A | 166,743 | |||
Class C | 259,689 | |||
Interest, facilities and maintenance fees | 55,874 | |||
Transfer agent fees - Class A, C and Y | 131,188 | |||
Transfer agent fees - R5 | 5 | |||
Transfer agent fees - R6 | 1,808 | |||
Trustees’ and officers’ fees and benefits | 10,787 | |||
Registration and filing fees | 51,692 | |||
Reports to shareholders | �� | 10,841 | ||
Professional services fees | 34,431 | |||
Other | 17,909 | |||
Total expenses | 1,566,915 | |||
Less: Fees waived, expenses reimbursed and expense offset arrangement(s) | (230,999 | ) | ||
Net expenses | 1,335,916 | |||
Net investment income | 5,581,130 | |||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities | (651,002 | ) | ||
Futures contracts | (368,477 | ) | ||
(1,019,479 | ) | |||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | 1,334,260 | |||
Futures contracts | 48,963 | |||
1,383,223 | ||||
Net realized and unrealized gain | 363,744 | |||
Net increase in net assets resulting from operations | $ | 5,944,874 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
20 | Invesco Short Duration High Yield Municipal Fund |
Statement of Changes in Net Assets
For the six months ended February 28, 2019 and the year ended August 31, 2018
(Unaudited)
February 28, | August 31, | |||||||
2019 | 2018 | |||||||
Operations: | ||||||||
Net investment income | $ | 5,581,130 | $ | 6,286,528 | ||||
Net realized gain (loss) | (1,019,479 | ) | (272,922 | ) | ||||
Change in net unrealized appreciation | 1,383,223 | 383,729 | ||||||
Net increase in net assets resulting from operations | 5,944,874 | 6,397,335 | ||||||
Distributions to shareholders from distributable earnings(1): | ||||||||
Class A | (2,247,647 | ) | (2,955,793 | ) | ||||
Class C | (675,427 | ) | (1,144,475 | ) | ||||
Class Y | (2,167,930 | ) | (2,129,529 | ) | ||||
Class R5 | (186 | ) | (630 | ) | ||||
Class R6 | (199,591 | ) | (110,735 | ) | ||||
Total distributions to shareholders from distributable earnings | (5,290,781 | ) | (6,341,162 | ) | ||||
Share transactions-net: | ||||||||
Class A | 59,519,147 | 35,880,945 | ||||||
Class C | (9,485,092 | ) | 17,315,424 | |||||
Class Y | 53,056,272 | 67,943,582 | ||||||
Class R5 | - | (17,968 | ) | |||||
Class R6 | 2,985,759 | 9,694,020 | ||||||
Net increase in net assets resulting from share transactions | 106,076,086 | 130,816,003 | ||||||
Net increase in net assets | 106,730,179 | 130,872,176 | ||||||
Net assets: | ||||||||
Beginning of period | 273,889,089 | 143,016,913 | ||||||
End of period | $ | 380,619,268 | $ | 273,889,089 |
(1) | The Securities and Exchange Commission eliminated the requirement to disclose distribution components separately, except for tax return of capital. For the year ended August 31, 2018, distributions to shareholders from distributable earnings consisted of distributions from net investment income. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
21 | Invesco Short Duration High Yield Municipal Fund |
Notes to Financial Statements
February 28, 2019
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Short Duration High Yield Municipal 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 anopen-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to seek federaltax-exempt current income and taxable capital appreciation.
The Fund currently consists of five different classes of shares: Class A, Class C, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with afront-end sales charge unless certain waiver criteria are met. 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, Class R5 and Class R6 shares are sold at net asset value.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946,Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations– Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in theover-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments inopen-end andclosed-end registered investment companies that do not trade on an exchange are valued at theend-of-day net asset value per share. Investments inopen-end andclosed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such asinstitution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
22 | Invesco Short Duration High Yield Municipal Fund |
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 orlosses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities.Pay-in-kind interest income andnon-cash dividend income received in the form of securitiesin-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on theex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates 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, theinvestment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions– Distributions from net investment income, if any, are declared and paid monthly. Distributions from net realized capital gain, ifany, are generally declared and paid annually and recorded on theex-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 of 1986, asamended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable andtax-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. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
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 Rule12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transferagency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6are allocated to each share class based on relative net assets.Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Interest, Facilities and Maintenance Fees– Interest, Facilities and Maintenance Fees include interest and related borrowing costs suchas 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 theUnited 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 theperiod-end date and before the date the financial statements are released to print. |
I. | Indemnifications– Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnifiedagainst certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
J. | Floating Rate Note Obligations– The Fund invests in inverse floating rate securities, such as Tender Option Bonds (“TOBs”), for investmentpurposes and to enhance the yield of the Fund. Such securities may be purchased in the secondary market without first owning an underlying bond |
23 | Invesco Short Duration High Yield Municipal Fund |
but generally are created through the sale of fixed rate bonds by the Fund to special purpose trusts established by a broker dealer or by the Fund (“TOB Trusts”) in exchange for cash and residual interests in the TOB Trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The TOB Trusts finance the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Fund to retain residual interests in the bonds. The floating rate notes issued by the TOB Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the TOB Trusts for redemption at par at each reset date. The residual interests held by the Fund (inverse floating rate securities) 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 TOB Trust to the Fund, thereby collapsing the TOB Trust. Inverse floating rate securities 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.
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 decreases in the value of such securities in response to changes in interest rates to a greater extent than fixed rate securities 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 notes created by the TOB Trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such notes for repayment of principal, may not be able to be remarketed to third parties. In such cases, the TOB Trust holding the fixed rate bonds may be collapsed with the entity that contributed the fixed rate bonds to the TOB Trust. In the case where a TOB Trust is collapsed with the Fund, the Fund will be required to repay the principal amount of the tendered securities, which may require the Fund to sell other portfolio holdings to raise cash to meet that obligation. The Fund could therefore be required to sell other portfolio holdings at a disadvantageous time or price to raise cash to meet this obligation, which risk will be heightened during times of market volatility, illiquidity or uncertainty. The embedded leverage in the TOB Trust could cause the Fund to lose more money than the value of the asset it has contributed to the TOB Trust and greater levels of leverage create the potential for greater losses. In addition, a Fund may enter into reimbursement agreements with the liquidity provider of certain TOB transactions in connection with certain residuals held by the Fund. These agreements commit a Fund to reimburse the liquidity provider to the extent that the liquidity provider must provide cash to a TOB Trust, including following the termination of a TOB Trust resulting from a mandatory tender event (“liquidity shortfall”). The reimbursement agreement will effectively make the Fund liable for the amount of the negative difference, if any, between the liquidation value of the underlying security and the purchase price of the floating rate notes issued by the TOB Trust.
The Fund accounts for the transfer of fixed rate bonds to the TOB 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 captionFloating rate note obligations on the Statement of Assets and Liabilities. The carrying amount of the Fund’s floating rate note obligations as reported on the Statement of Assets and Liabilities approximates its fair value. 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 TOB Trusts as a component ofInterest, facilities andmaintenance feeson the Statement of Operations.
Final rules implementing section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Volcker Rule”) prohibit banking entities from engaging in proprietary trading of certain instruments and limit such entities’ investments in, and relationships with, “covered funds”, as defined in the rules. These rules preclude banking entities and their affiliates from sponsoring and/or providing services for existing TOB Trusts. A new TOB structure is being utilized by the Fund wherein the Fund, as holder of the residuals, will perform certain duties previously performed by banking entities as “sponsors” of TOB Trusts. These duties may be performed by a third-party service provider. The Fund’s expanded role under the new TOB structure may increase its operational and regulatory risk. The new structure is substantially similar to the previous structure; however, pursuant to the Volcker Rule, the remarketing agent would not be able to repurchase tendered floaters for its own account upon a failed remarketing. In the event of a failed remarketing, a banking entity serving as liquidity provider may loan the necessary funds to the TOB Trust to purchase the tendered floaters. The TOB Trust, not the Fund, would be the borrower and the loan from the liquidity provider will be secured by the purchased floaters now held by the TOB Trust. However, as previously described, the Fund would bear the risk of loss with respect to any liquidity shortfall to the extent it entered into a reimbursement agreement with the liquidity provider.
Further, the SEC and various banking agencies have adopted rules implementing credit risk retention requirements for asset-backed securities (the “Risk Retention Rules”). The Risk Retention Rules require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s municipal bonds. The Fund has adopted policies intended to comply with the Risk Retention Rules. The Risk Retention Rules may adversely affect the Fund’s ability to engage in TOB Trust transactions or increase the costs of such transactions in certain circumstances.
There can be no assurances that the new TOB structure will continue to be a viable form of leverage. Further, there can be no assurances that alternative forms of leverage will be available to the Fund in order to maintain current levels of leverage. Any alternative forms of leverage may be less advantageous to the Fund, and may adversely affect the Fund’s net asset value, distribution rate and ability to achieve its investment objective.
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 (the “1933 Act”), 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 atypical, 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.
K. | Futures Contracts– The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movementsand/or currency risks. A futures contract is an agreement between two parties (“Counterparties”) 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 |
24 | Invesco Short Duration High Yield Municipal Fund |
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. |
L. | Other Risks – The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected byconstitutional 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 the Fund’s investments in municipal securities.
There is some risk that a portion or all of the interest received from certaintax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service.
The Fund isnon-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund’s shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly.
M. | Collateral– To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’spractice 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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
First $300 million | 0.50 | % | ||
Next $300 million | 0.46 | % | ||
Over $600 million | 0.42 | % |
For the six months ended February 28, 2019, the effective advisory fees incurred by the Fund was 0.50%.
Under the terms of a mastersub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separatesub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “AffiliatedSub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such AffiliatedSub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such AffiliatedSub-Adviser(s).
The Adviser has contractually agreed, through at least December 31, 2019, 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 C, Class Y, Class R5 and Class R6shares to 0.79%, 1.54%, 0.54%, 0.54% and 0.54%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause 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 ornon-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on December 31, 2019. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees.
For the six months ended February 28, 2019, the Adviser waived advisory fees of $97,998 and reimbursed class level expenses of $57,283, $22,304, $51,438, $5 and $1,808 of Class A, Class C, Class Y, Class R5 and Class R6 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 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into asub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and 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 orsub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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 Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A 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 C shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would
25 | Invesco Short Duration High Yield Municipal Fund |
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 28, 2019, expenses incurred under the Plans are shown in the Statement of Operations asDistribution 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 28, 2019, IDI advised the Fund that IDI retained $25,777 infront-end sales commissions from the sale of Class A shares and $8,390 and $2,001 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.
NOTE 3–Additional Valuation Information
Generally Accepted Accounting Principles (“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 28, 2019. 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.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Municipal Obligations | $ | – | $392,899,179 | $– | $ | 392,899,179 | ||||||||||
Investments Matured | – | 683,750 | – | 683,750 | ||||||||||||
Total Investments in Securities | – | 393,582,929 | – | 393,582,929 | ||||||||||||
Other Investments - Assets* | ||||||||||||||||
Futures Contracts | 46,364 | – | – | 46,364 | ||||||||||||
Total Investments | $ | 46,364 | $393,582,929 | $– | $ | 393,629,293 |
* Unrealized appreciation.
NOTE 4–Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions andclose-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
Value of Derivative Investments atPeriod-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of February 28, 2019:
Value | ||||
Derivative Assets | Interest Rate Risk | |||
Unrealized appreciation on futures contracts – Exchange-Traded(a) | $ | 46,364 | ||
Derivatives not subject to master netting agreements | (46,364 | ) | ||
Total Derivative Assets subject to master netting agreements | $ | - |
(a) | The daily variation margin receivable atperiod-end is recorded in the Statement of Assets and Liabilities. |
26 | Invesco Short Duration High Yield Municipal Fund |
Effect of Derivative Investments for the six months ended February 28, 2019
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain (Loss) on Statement of Operations | |||||
Interest Rate Risk | |||||
Realized (Loss): | |||||
Futures contracts | $ | (368,477 | ) | ||
Change in Net Unrealized Appreciation: | |||||
Futures contracts | 48,963 | ||||
Total | $ | (319,514 | ) |
The table below summarizes the six months average notional of forward foreign currency contracts held during the period.
Futures Contracts | ||||
Average notional value | $ | 17,461,751 |
NOTE 5–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $163.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefitsinclude 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, andTrustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan.Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any atperiod-end, are shown in the Statement of Assets and Liabilities under the payable captionAmount 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 TOB Trusts are accounted for as secured borrowings. The average floating rate notes outstanding and average annual interest and fee rate related to inverse floating rate note obligations during the six months ended February 28, 2019 were $11,714,286 and 0.96%, respectively.
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 GAAP. 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 fiscalyear-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. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
27 | Invesco Short Duration High Yield Municipal Fund |
The Fund had a capital loss carryforward as of August 31, 2018, as follows:
Capital Loss Carryforward*
Expiration | Short-Term | Long-Term | Total | |||||||
Not subject to expiration | $ | 1,191,195 | $- | $ | 1,191,195 |
* | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2019 was $155,782,821 and $56,635,816, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reportingperiod-end.
Unrealized Appreciation (Depreciation) of Investments on a TaxBasis
Aggregate unrealized appreciation of investments | $ | 6,794,563 | ||
Aggregate unrealized (depreciation) of investments | (2,228,856 | ) | ||
Net unrealized appreciation of investments | $ | 4,565,707 | ||
Cost of investments for tax purposes is $389,063,586. |
|
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||||||
Six months ended | Year ended | |||||||||||||||||||
February 28, 2019(a) | August 31, 2018 | |||||||||||||||||||
|
| |||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Sold: | ||||||||||||||||||||
Class A | 8,530,823 | $ 88,483,491 | 6,505,004 | $ 68,128,355 | ||||||||||||||||
Class C | 1,385,784 | 14,357,618 | 2,976,565 | 31,132,509 | ||||||||||||||||
Class Y | 7,517,700 | 78,209,574 | 8,752,628 | 91,778,543 | ||||||||||||||||
Class R6 | 402,953 | 4,191,301 | 980,608 | 10,256,388 | ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||||||
Class A | 166,594 | 1,731,509 | 223,190 | 2,335,864 | ||||||||||||||||
Class C | 51,938 | 538,440 | 94,915 | 991,659 | ||||||||||||||||
Class Y | 146,914 | 1,528,192 | 127,429 | 1,334,866 | ||||||||||||||||
Class R5 | - | - | 21 | 215 | ||||||||||||||||
Class R6 | 16,373 | 170,441 | 8,963 | 94,036 | ||||||||||||||||
Reacquired: | ||||||||||||||||||||
Class A | (2,956,737 | ) | (30,695,853 | ) | (3,304,391 | ) | (34,583,274 | ) | ||||||||||||
Class C | (2,353,607 | ) | (24,381,150 | ) | (1,417,024 | ) | (14,808,744 | ) | ||||||||||||
Class Y | (2,571,090 | ) | (26,681,494 | ) | (2,406,237 | ) | (25,169,827 | ) | ||||||||||||
Class R5 | - | - | (1,730 | ) | (18,183 | ) | ||||||||||||||
Class R6 | (132,309 | ) | (1,375,983 | ) | (62,632 | ) | (656,404 | ) | ||||||||||||
Net increase in share activity | 10,205,336 | $106,076,086 | 12,477,309 | $130,816,003 |
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 72% 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. |
28 | Invesco Short Duration High Yield Municipal Fund |
NOTE 11–Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Supplemental | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
to average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratio of | Ratio of | net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net gains | expenses | expenses | with fee waivers | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(losses) | to average | to average net | (excluding | Ratio of net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset | on securities | Dividends | net assets | assets without | interest, | investment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
value, | Net | (both | Total from | from net | Net asset | Net assets, | with fee waivers | fee waivers | facilities and | income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning | investment | realized and | investment | investment | value, end | Total | end of period | and/or expenses | and/or expenses | maintenance | to average | Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||
of period | income(a) | unrealized) | operations | income | of period | return (b) | (000’s omitted) | absorbed | absorbed | fees) | net assets | turnover (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $ | 10.48 | $ | 0.18 | $ | (0.02 | ) | $ | 0.16 | $ | (0.17 | ) | $ | 10.47 | 1.58 | % | $ | 169,334 | 0.82 | %(d) | 0.97 | %(d) | 0.79 | %(d) | 3.56 | %(d) | 18 | % | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.47 | 0.34 | 0.01 | 0.35 | (0.34 | ) | 10.48 | 3.46 | 109,307 | 0.86 | 1.06 | 0.79 | 3.26 | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 10.60 | 0.37 | (0.16 | ) | 0.21 | (0.34 | ) | 10.47 | 2.08 | 73,384 | 0.82 | 1.16 | 0.80 | 3.65 | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16(e) | 10.00 | 0.35 | 0.50 | 0.85 | (0.25 | ) | 10.60 | 8.61 | 41,561 | 0.79 | (f) | 1.47 | (f) | - | 3.64 | (f) | 69 | ||||||||||||||||||||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 10.46 | 0.14 | (0.02 | ) | 0.12 | (0.13 | ) | 10.45 | 1.20 | 42,848 | 1.57 | (d) | 1.72 | (d) | 1.54 | (d) | 2.81 | (d) | 18 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.45 | 0.26 | 0.02 | 0.28 | (0.27 | ) | 10.46 | 2.69 | 52,446 | 1.61 | 1.81 | 1.54 | 2.51 | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 10.58 | 0.30 | (0.17 | ) | 0.13 | (0.26 | ) | 10.45 | 1.32 | 35,114 | 1.57 | 1.91 | 1.55 | 2.90 | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16(e) | 10.00 | 0.28 | 0.49 | 0.77 | (0.19 | ) | 10.58 | 7.81 | 20,641 | 1.54 | (f) | 2.22 | (f) | - | 2.89 | (f) | 69 | ||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 10.48 | 0.20 | (0.01 | ) | 0.19 | (0.19 | ) | 10.48 | 1.79 | 155,685 | 0.57 | (d) | 0.72 | (d) | 0.54 | (d) | 3.81 | (d) | 18 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.48 | 0.37 | 0.00 | 0.37 | (0.37 | ) | 10.48 | 3.62 | 102,388 | 0.61 | 0.81 | 0.54 | 3.51 | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 10.61 | 0.40 | (0.16 | ) | 0.24 | (0.37 | ) | 10.48 | 2.34 | 34,480 | 0.57 | 0.91 | 0.55 | 3.90 | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16(e) | 10.00 | 0.37 | 0.51 | 0.88 | (0.27 | ) | 10.61 | 8.91 | 13,943 | 0.54 | (f) | 1.22 | (f) | - | 3.89 | (f) | 69 | ||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 10.49 | 0.20 | (0.02 | ) | 0.18 | (0.19 | ) | 10.48 | 1.71 | 11 | 0.57 | (d) | 0.73 | (d) | 0.54 | (d) | 3.81 | (d) | 18 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.48 | 0.37 | 0.01 | 0.38 | (0.37 | ) | 10.49 | 3.72 | 11 | 0.61 | 0.82 | 0.54 | 3.51 | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 10.61 | 0.40 | (0.16 | ) | 0.24 | (0.37 | ) | 10.48 | 2.34 | 28 | 0.57 | 0.92 | 0.55 | 3.90 | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16(e) | 10.00 | 0.37 | 0.51 | 0.88 | (0.27 | ) | 10.61 | 8.91 | 63 | 0.54 | (f) | 1.20 | (f) | - | 3.89 | (f) | 69 | ||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 10.49 | 0.20 | (0.01 | ) | 0.19 | (0.19 | ) | 10.49 | 1.81 | 12,742 | 0.57 | (d) | 0.67 | (d) | 0.54 | (d) | | 3.81 | (d) | 18 | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.48 | 0.37 | 0.01 | 0.38 | (0.37 | ) | 10.49 | 3.72 | 9,738 | 0.61 | 0.76 | 0.54 | 3.52 | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17(e) | 10.24 | 0.17 | 0.22 | 0.39 | (0.15 | ) | 10.48 | 3.87 | 10 | 0.56 | (f) | 0.88 | (f) | 0.54 | (f) | 3.91 | (f) | 42 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $134,500, $52,368, $120,775, $10 and $11,126 for Class A, Class C, Class Y, Class R5 and Class R6 shares, respectively. |
(e) | Commencement date of September 30, 2015 for Class A, Class C, Class Y and Class R5 shares and April 4, 2017 for Class R6 shares, respectively. |
(f) | Annualized. |
29 | Invesco Short Duration High Yield Municipal Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service(12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2018 through February 28, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Beginning | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Expense Ratio | |||||||||||||||||||||||||||
Ending |
Expenses |
Ending |
Expenses | |||||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,015.80 | $ | 4.10 | $ | 1,020.73 | $ | 4.11 | 0.82 | % | ||||||||||||||||||
Class C | 1,000.00 | 1,012.00 | 7.83 | 1,017.01 | 7.85 | 1.57 | ||||||||||||||||||||||||
Class Y | 1,000.00 | 1,017.90 | 2.85 | 1,021.97 | 2.86 | 0.57 | ||||||||||||||||||||||||
Class R5 | 1,000.00 | 1,017.10 | 2.85 | 1,021.97 | 2.86 | 0.57 | ||||||||||||||||||||||||
Class R6 | 1,000.00 | 1,018.10 | 2.85 | 1,021.97 | 2.86 | 0.57 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2018 through February 28, 2019, 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 181/365 to reflect the most recent fiscal half year. |
30 | Invesco Short Duration High Yield Municipal Fund |
Explore High-Conviction Investing with Invesco
Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
∎ | Fund reports and prospectuses |
∎ | Quarterly statements |
∎ | Daily confirmations |
∎ | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on FormN-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s FormsN-Q (or any successor Form) on the SEC website at sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines.
The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov. Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd. | ![]() |
SEC file numbers: 811-09913 and 333-36074 | Invesco Distributors, Inc. | SDHYM-SAR-1 | 04222019 | 0804 |
|
| |||
Semiannual Report to Shareholders
| February 28, 2019 | |||
| ||||
Invesco Small Cap Discovery Fund
Nasdaq: A: VASCX ∎ C: VCSCX ∎ Y: VISCX ∎ R5: VESCX ∎ R6: VFSCX |
| ||||||
2 | Fund Performance | |||||
4 | Letters to Shareholders | |||||
5 | Schedule of Investments | |||||
8 | Financial Statements | |||||
11 | Notes to Financial Statements | |||||
16 | Financial Highlights | |||||
17 | Fund Expenses |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800 959 4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most currentmonth-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, 8/31/18 to 2/28/19, at net asset value (NAV). Performance showndoes not include applicable contingent deferred sales charges (CDSC) orfront-end salescharges, which would have reduced performance. |
| |||
Class A Shares | -6.96 | % | ||
Class C Shares | -7.30 | |||
Class Y Shares | -6.78 | |||
Class R5 Shares | -6.84 | |||
Class R6 Shares | -6.73 | |||
S&P 500 Index▼ (Broad Market Index) | -3.04 | |||
Russell 2000 Growth Index∎ (Style-Specific Index) | -9.14 | |||
LipperSmall-Cap Growth Funds Indext (Peer Group Index) | -6.47 | |||
Source(s):▼FactSet Research Systems Inc.;∎RIMES Technologies Corp.;tLipper Inc. | ||||
TheS&P 500®Indexis an unmanaged index considered representative of the US stock market. |
| |||
TheRussell 2000®Growth Indexis an unmanaged index considered representative ofsmall-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. |
| |||
TheLipperSmall-Cap Growth Funds Indexis an unmanaged index considered representative ofsmall-cap growth funds tracked by Lipper. |
| |||
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes. |
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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. |
|
For more information about your Fund |
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. |
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends. |
2 | Invesco Small Cap Discovery Fund |
Average Annual Total Returns |
| |||
As of 2/28/19, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (11/27/00) | 5.30 | % | ||
10 Years | 13.99 | |||
5 Years | 6.28 | |||
1 Year | 4.72 | |||
Class C Shares* | ||||
Inception (11/27/00) | 5.19 | % | ||
10 Years | 13.81 | |||
5 Years | 6.71 | |||
1 Year | 9.12 | |||
Class Y Shares | ||||
Inception (2/2/06) | 8.22 | % | ||
10 Years | 14.94 | |||
5 Years | 7.79 | |||
1 Year | 11.12 | |||
Class R5 Shares | ||||
10 Years | 14.94 | % | ||
5 Years | 7.96 | |||
1 Year | 11.16 | |||
Class R6 Shares | ||||
10 Years | 14.98 | % | ||
5 Years | 8.02 | |||
1 Year | 11.32 | |||
* Effective January 26, 2019, Class C share performance includes the conversion to A shares after 10 years. |
|
Effective June 1, 2010, Class A, 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 C and Class Y shares, respectively, of Invesco Van Kampen Small Cap Growth Fund (renamed Invesco Small Cap Discovery Fund). Returns shown above, prior to June 1, 2010, for Class A, Class C and Class Y shares are blended returns of the predecessor fund and Invesco Small Cap Discovery Fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R5 shares incepted on September 24, 2012. Performance shown prior to that date is that of the Fund’s and the predecessor fund’s Class A shares and includes the12b-1 fees applicable to Class A shares.
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of the Fund’s and the predecessor fund’s Class A shares and includes the12b-1 fees applicable to Class A shares.
Average Annual Total Returns |
| |||
As of 12/31/18, the most recent calendar quarter end, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (11/27/00) | 4.32 | % | ||
10 Years | 10.27 | |||
5 Years | 3.31 | |||
1 Year | -10.53 | |||
Class C Shares | ||||
Inception (11/27/00) | 3.88 | % | ||
10 Years | 10.07 | |||
5 Years | 3.73 | |||
1 Year | -6.76 | |||
Class Y Shares | ||||
Inception (2/2/06) | 6.84 | % | ||
10 Years | 11.16 | |||
5 Years | 4.75 | |||
1 Year | -5.12 | |||
Class R5 Shares | ||||
10 Years | 11.19 | % | ||
5 Years | 4.95 | |||
1 Year | -4.96 | |||
Class R6 Shares | ||||
10 Years | 11.22 | % | ||
5 Years | 5.00 | |||
1 Year | -4.84 |
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 recentmonth-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 Y, Class R5 and Class R6 shares was 1.37%, 2.08%, 1.12 %, 0.98% and 0.89%, 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 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 Y, Class R5 and Class R6 shares do not have afront-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 | Invesco Small Cap Discovery Fund |
Letters to Shareholders
Bruce Crockett |
|
Dear Fellow Shareholders: | ||
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time; monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | ||||
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory andsub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper, Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. | ||||
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. | ||||
Sincerely, | ||||
![]() | ||||
Bruce L. Crockett | ||||
Independent Chair | ||||
Invesco Funds Board of Trustees
| ||||
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward. | |||
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings | ||||
and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246. | ||||
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. | ||||
Sincerely, | ||||
![]() | ||||
Andrew Schlossberg | ||||
Head of the Americas, | ||||
Senior Managing Director, Invesco Ltd. |
4 | Invesco Small Cap Discovery Fund |
Schedule of Investments(a)
February 28, 2019
(Unaudited)
Shares | Value | |||||||
Common Stocks & Other Equity Interests-96.81% |
| |||||||
Aerospace & Defense-3.61% |
| |||||||
Curtiss-Wright Corp. | 34,225 | $ | 4,219,600 | |||||
HEICO Corp. | 107,300 | 10,057,229 | ||||||
Mercury Systems Inc.(b) | 112,186 | 7,126,055 | ||||||
21,402,884 | ||||||||
Apparel Retail-0.43% | ||||||||
Burlington Stores, Inc.(b) | 15,131 | 2,568,336 | ||||||
Application Software-11.51% |
| |||||||
2U, Inc.(b) | 58,957 | 4,345,131 | ||||||
Box, Inc., Class A(b) | 287,457 | 5,818,130 | ||||||
Globant S.A. (Argentina)(b) | 64,360 | 4,433,760 | ||||||
Guidewire Software, Inc.(b) | 103,099 | 9,458,302 | ||||||
HubSpot Inc.(b) | 46,454 | 7,821,925 | ||||||
j2 Global, Inc. | 68,908 | 5,857,869 | ||||||
New Relic, Inc.(b) | 65,170 | 6,891,727 | ||||||
Q2 Holdings, Inc.(b) | 78,513 | 5,403,265 | ||||||
SS&C Technologies Holdings, Inc. | 113,694 | 7,001,277 | ||||||
Tyler Technologies, Inc.(b) | 27,959 | 5,725,724 | ||||||
Zendesk, Inc.(b) | 69,022 | 5,454,118 | ||||||
68,211,228 | ||||||||
Auto Parts & Equipment-1.59% |
| |||||||
Fox Factory Holding Corp.(b) | 95,373 | 6,044,741 | ||||||
Visteon Corp.(b) | 39,736 | 3,403,786 | ||||||
9,448,527 | ||||||||
Biotechnology-7.35% | ||||||||
Amicus Therapeutics, Inc.(b) | 235,978 | 2,855,334 | ||||||
Coherus Biosciences, Inc.(b) | 246,573 | 3,535,857 | ||||||
Eagle Pharmaceuticals, Inc.(b) | 86,835 | 4,347,828 | ||||||
Neurocrine Biosciences, Inc.(b) | 62,166 | 4,802,324 | ||||||
Repligen Corp.(b) | 122,094 | 7,267,035 | ||||||
Retrophin, Inc.(b) | 247,806 | 5,590,503 | ||||||
Sage Therapeutics, Inc.(b) | 41,889 | 6,670,823 | ||||||
Sarepta Therapeutics, Inc.(b) | 58,707 | 8,467,898 | ||||||
43,537,602 | ||||||||
Building Products-2.00% | ||||||||
A.O. Smith Corp. | 88,136 | 4,576,903 | ||||||
Terex Co., Inc.(b) | 96,972 | 7,268,051 | ||||||
11,844,954 | ||||||||
Casinos & Gaming–1.14% | ||||||||
Penn National Gaming Inc.(b) | 271,847 | 6,755,398 | ||||||
Data Processing & Outsourced Services–3.13% |
| |||||||
Black Knight, Inc.(b) | 151,939 | 7,938,813 | ||||||
Euronet Worldwide Inc.(b) | 40,949 | 5,500,269 |
Shares | Value | |||||||
Data Processing & Outsourced Services-(continued) |
| |||||||
WNS (Holdings) Ltd., ADR (India)(b) | 96,490 | $ | 5,094,672 | |||||
18,533,754 | ||||||||
Distillers & Vintners-0.60% | ||||||||
MGP Ingredients, Inc. | 43,375 | 3,550,244 | ||||||
Diversified Support Services-1.05% |
| |||||||
KAR Auction Services, Inc. | 131,804 | 6,214,559 | ||||||
Education Services-4.13% | ||||||||
Bright Horizons Family Solutions, Inc.(b) | 60,096 | 7,451,904 | ||||||
Chegg Inc.(b) | 229,259 | 9,085,534 | ||||||
Grand Canyon Education, Inc.(b) | 68,606 | 7,936,342 | ||||||
24,473,780 | ||||||||
Electronic Equipment & Instruments-1.01% |
| |||||||
FLIR Systems, Inc. | 116,793 | 6,009,000 | ||||||
Environmental & Facilities Services-1.44% |
| |||||||
Casella Waste Systems, Inc., Class A(b) | 242,228 | 8,545,804 | ||||||
Financial Exchanges & Data-0.70% |
| |||||||
MarketAxess Holdings, Inc. | 16,892 | 4,119,621 | ||||||
Health Care Equipment-4.93% |
| |||||||
DexCom, Inc.(b) | 46,728 | 6,510,612 | ||||||
Inogen, Inc.(b) | 44,647 | 4,797,767 | ||||||
Integra LifeSciences Holdings Corp. (b) | 96,920 | 5,339,323 | ||||||
LivaNova PLC(b) | 71,538 | 6,667,341 | ||||||
Penumbra, Inc.(b) | 44,306 | 5,922,383 | ||||||
29,237,426 | ||||||||
Health Care REITs-0.70% | ||||||||
Physicians Realty Trust | 230,187 | 4,159,479 | ||||||
Health Care Services-2.81% |
| |||||||
LHC Group, Inc.(b) | 99,241 | 10,885,745 | ||||||
Premier, Inc., Class A(b) | 157,744 | 5,770,276 | ||||||
16,656,021 | ||||||||
Health Care Supplies-0.79% | ||||||||
Neogen Corp.(b) | 75,183 | 4,658,339 | ||||||
Health Care Technology-1.54% |
| |||||||
Evolent Health, Inc., Class A(b) | 234,246 | 3,089,705 | ||||||
Medidata Solutions, Inc.(b) | 80,522 | 6,040,760 | ||||||
9,130,465 | ||||||||
Industrial Machinery-6.09% |
| |||||||
Altra Industrial Motion Corp. | 193,766 | 6,163,696 | ||||||
Gardner Denver Holdings, Inc.(b) | 259,694 | 6,972,784 | ||||||
Graco Inc. | 176,392 | 8,283,368 | ||||||
John Bean Technologies Corp. | 85,874 | 8,046,394 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Small Cap Discovery Fund |
Shares | Value | |||||||
Industrial Machinery-(continued) |
| |||||||
Welbilt, Inc.(b) | 415,950 | $ | 6,642,722 | |||||
36,108,964 | ||||||||
Interactive Home Entertainment-0.70% |
| |||||||
Take-Two Interactive Software, Inc.(b) | 47,356 | 4,132,285 | ||||||
Internet & Direct Marketing Retail-1.46% |
| |||||||
Etsy, Inc.(b) | 121,462 | 8,656,597 | ||||||
Internet Services & Infrastructure-2.15% |
| |||||||
GoDaddy, Inc., Class A(b) | 108,448 | 8,095,643 | ||||||
GTT Communications Inc.(b) | 149,288 | 4,666,743 | ||||||
12,762,386 | ||||||||
Investment Banking & Brokerage-2.50% |
| |||||||
E*TRADE Financial Corp. | 88,552 | 4,338,162 | ||||||
LPL Financial Holdings, Inc. | 139,036 | 10,484,705 | ||||||
14,822,867 | ||||||||
IT Consulting & Other Services-1.65% |
| |||||||
EPAM Systems, Inc.(b) | 41,500 | 6,713,870 | ||||||
InterXion Holding N.V. | 47,160 | 3,088,980 | ||||||
9,802,850 | ||||||||
Leisure Facilities-1.34% | ||||||||
Planet Fitness, Inc., Class A(b) | 134,748 | 7,920,487 | ||||||
Leisure Products-0.70% | ||||||||
Malibu Boats, Inc., Class A(b) | 89,871 | 4,152,939 | ||||||
Life Sciences Tools & Services-2.17% |
| |||||||
Bio-Techne Corp. | 38,855 | 7,533,984 | ||||||
Syneos Health, Inc.(b) | 126,936 | 5,302,117 | ||||||
12,836,101 | ||||||||
Managed Health Care-1.00% | ||||||||
HealthEquity, Inc.(b) | 73,635 | 5,926,145 | ||||||
Movies & Entertainment-1.19% | ||||||||
World Wrestling Entertainment, Inc., Class A | 83,993 | 7,030,214 | ||||||
Multi-line Insurance-0.85% | ||||||||
Assurant, Inc. | 48,680 | 5,013,553 | ||||||
Oil & Gas Exploration & Production-1.61% |
| |||||||
Callon Petroleum Co.(b) | 694,657 | 5,314,126 | ||||||
Centennial Resource Development, Inc., Class A(b) | 464,377 | 4,211,899 | ||||||
9,526,025 | ||||||||
Packaged Foods & Meats-1.25% |
| |||||||
Nomad Foods Ltd. | 368,850 | 7,413,885 | ||||||
Pharmaceuticals-2.62% | ||||||||
Aerie Pharmaceuticals, Inc.(b) | 131,201 | 6,123,151 | ||||||
Elanco Animal Health Inc.(b) | 135,156 | 4,087,117 |
Shares | Value | |||||||
Pharmaceuticals-(continued) |
| |||||||
GW Pharmaceuticals PLC, ADR (United Kingdom)(b) | 31,080 | $ | 5,346,071 | |||||
15,556,339 | ||||||||
Property & Casualty Insurance-0.59% |
| |||||||
Hanover Insurance Group Inc. (The) | 29,551 | 3,507,999 | ||||||
Regional Banks-1.98% | ||||||||
Webster Financial Corp. | 112,730 | 6,472,957 | ||||||
Western Alliance Bancorp(b) | 114,185 | 5,283,340 | ||||||
11,756,297 | ||||||||
Research & Consulting Services-1.40% |
| |||||||
CoStar Group, Inc.(b) | 18,100 | 8,281,293 | ||||||
Restaurants-2.67% | ||||||||
Dunkin’ Brands Group Inc. | 60,513 | 4,323,654 | ||||||
Papa John’s International, Inc. | 66,129 | 2,890,499 | ||||||
Texas Roadhouse, Inc. | 88,885 | 5,627,309 | ||||||
Wingstop Inc. | 44,919 | 2,992,054 | ||||||
15,833,516 | ||||||||
Security & Alarm Services-1.37% | ||||||||
Brink’s Co. (The) | 102,599 | 8,097,113 | ||||||
Semiconductor Equipment-1.15% |
| |||||||
Entegris, Inc. | 192,764 | 6,810,352 | ||||||
Semiconductors-3.02% | ||||||||
Lattice Semiconductor Corp.(b) | 366,655 | 4,326,529 | ||||||
Monolithic Power Systems Inc. | 45,753 | 6,135,935 | ||||||
Universal Display Corp. | 49,960 | 7,456,030 | ||||||
17,918,494 | ||||||||
Specialized Consumer Services-1.09% |
| |||||||
ServiceMaster Global Holdings, Inc. (b) | 142,661 | 6,442,571 | ||||||
Specialty Chemicals-1.65% | ||||||||
Ingevity Corp.(b) | 46,578 | 5,366,717 | ||||||
PolyOne Corp. | 135,931 | 4,434,069 | ||||||
9,800,786 | ||||||||
Specialty Stores-1.37% | ||||||||
Five Below, Inc.(b) | 67,441 | 8,116,524 | ||||||
Systems Software-2.78% | ||||||||
Rapid7 Inc.(b) | 228,458 | 10,515,922 | ||||||
Varonis Systems, Inc.(b) | 104,265 | 5,938,934 | ||||||
16,454,856 | ||||||||
Total Common Stocks & Other Equity Interests |
| 573,738,859 | ||||||
Money Market Funds-3.17% |
| |||||||
Invesco Government & Agency Portfolio-Institutional Class, | 6,564,622 | 6,564,622 | ||||||
Invesco Liquid Assets Portfolio-Institutional Class, 2.51%(c) | 4,688,341 | 4,689,747 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Small Cap Discovery Fund |
Shares | Value | |||||||
Invesco Treasury Portfolio-Institutional Class, 2.29%(c) | 7,502,424 | $ | 7,502,424 | |||||
Total Money Market Funds (Cost $18,756,152) |
| 18,756,793 | ||||||
TOTAL INVESTMENTS IN SECURITIES-99.98% |
| 592,495,652 | ||||||
OTHER ASSETS LESS LIABILITIES-0.02% |
| 127,162 | ||||||
NET ASSETS-100.00% | $ | 592,622,814 |
Abbreviations:
ADR - American Depositary Receipt
REIT - Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the7-day SEC standardized yield as of February 28, 2019. |
Portfolio Composition
By sector, based on Net Assets
as of February 28, 2019
Information Technology | 26.40 | % | ||
Health Care | 23.21 | |||
Industrials | 16.96 | |||
Consumer Discretionary | 15.92 | |||
Financials | 6.62 | |||
Other Sectors, Each Less than 2% | 7.70 | |||
Money Market Funds, Plus Other Assets Less Liabilities | 3.19 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Small Cap Discovery Fund |
Statement of Assets and Liabilities
February 28, 2019
(Unaudited)
Assets: | ||||
Investments in securities, at value | $ | 573,738,859 | ||
Investments in affiliated money market funds, at value | 18,756,793 | |||
Receivable for: | ||||
Investments sold | 1,706,256 | |||
Fund shares sold | 326,547 | |||
Dividends | 123,604 | |||
Investment for trustee deferred compensation and retirement plans | 117,921 | |||
Total assets | 594,769,980 | |||
Liabilities: | ||||
Payable for: | ||||
Fund shares reacquired | 1,667,525 | |||
Accrued fees to affiliates | 301,853 | |||
Accrued trustees’ and officers’ fees and benefits | 4,044 | |||
Accrued other operating expenses | 43,354 | |||
Trustee deferred compensation and retirement plans | 130,390 | |||
Total liabilities | 2,147,166 | |||
Net assets applicable to shares outstanding | $ | 592,622,814 | ||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 440,355,251 | ||
Distributable earnings | 152,267,563 | |||
$ | 592,622,814 | |||
Net Assets: | ||||
Class A | $ | 364,302,398 | ||
Class C | $ | 25,057,528 | ||
Class Y | $ | 75,864,507 | ||
Class R5 | $ | 48,376,042 | ||
Class R6 | $ | 79,022,339 |
Shares outstanding, no par value, with an unlimited number of shares authorized:
Class A | 39,555,292 | |||
Class C | 3,895,620 | |||
Class Y | 7,649,811 | |||
Class R5 | 4,797,015 | |||
Class R6 | 7,801,141 | |||
Class A: | ||||
Net asset value per share | $ | 9.21 | ||
Maximum offering price per share | $ | 9.75 | ||
Class C: | ||||
Net asset value and offering price per share | $ | 6.43 | ||
Class Y: | ||||
Net asset value and offering price per share | $ | 9.92 | ||
Class R5: | ||||
Net asset value and offering price per share | $ | 10.08 | ||
Class R6: | ||||
Net asset value and offering price per share | $ | 10.13 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Small Cap Discovery Fund |
Statement of Operations
For the six months ended February 28, 2019
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $4,466) | $ | 1,431,210 | ||
Dividends from affiliated money market funds (includes securities lending income of $280,956) | 506,790 | |||
Total investment income | 1,938,000 | |||
Expenses: | ||||
Advisory fees | 2,327,394 | |||
Administrative services fees | 66,508 | |||
Custodian fees | 1,368 | |||
Distribution fees: | ||||
Class A | 439,229 | |||
Class C | 173,328 | |||
Transfer agent fees – A, C and Y | 502,497 | |||
Transfer agent fees – R5 | 22,157 | |||
Transfer agent fees – R6 | 2,375 | |||
Trustees’ and officers’ fees and benefits | 13,814 | |||
Registration and filing fees | 44,959 | |||
Reports to shareholders | 24,943 | |||
Professional services fees | 18,712 | |||
Other | 8,734 | |||
Total expenses | 3,646,018 | |||
Less: Fees waived and expense offset arrangement(s) | (14,913 | ) | ||
Net expenses | 3,631,105 | |||
Net investment income (loss) | (1,693,105 | ) | ||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from Investment securities | 42,085,442 | |||
Change in net unrealized appreciation (depreciation) of Investment securities | (92,924,282 | ) | ||
Net realized and unrealized gain (loss) | (50,838,840 | ) | ||
Net increase (decrease) in net assets resulting from operations | $ | (52,531,945 | ) |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Small Cap Discovery Fund |
Statement of Changes in Net Assets
For the six months ended February 28, 2019 and the year ended August 31, 2018
(Unaudited)
February 28, 2019 | August 31, 2018 | |||||||
Operations: | ||||||||
Net investment income (loss) | $ | (1,693,105 | ) | $ | (4,963,701 | ) | ||
Net realized gain | 42,085,442 | 90,076,992 | ||||||
Change in net unrealized appreciation (depreciation) | (92,924,282 | ) | 83,380,295 | |||||
Net increase (decrease) in net assets resulting from operations | (52,531,945 | ) | 168,493,586 | |||||
Distributions to shareholders from distributable earnings(1): | ||||||||
Class A | (50,304,905 | ) | (48,027,547 | ) | ||||
Class B | - | (291,638 | ) | |||||
Class C | (7,298,137 | ) | (6,961,591 | ) | ||||
Class Y | (10,688,318 | ) | (13,692,566 | ) | ||||
Class R5 | (5,946,663 | ) | (3,141,297 | ) | ||||
Class R6 | (10,572,175 | ) | (9,838,633 | ) | ||||
Total distributions to shareholders from distributable earnings | (84,810,198 | ) | (81,953,272 | ) | ||||
Share transactions-net: | ||||||||
Class A | 35,349,165 | 7,305,397 | ||||||
Class B | - | (2,229,770 | ) | |||||
Class C | (7,734,189 | ) | 2,295,245 | |||||
Class Y | 1,999,780 | (17,083,313 | ) | |||||
Class R5 | 8,383,788 | 20,759,143 | ||||||
Class R6 | 3,389,967 | 3,449,059 | ||||||
Net increase in net assets resulting from share transactions | 41,388,511 | 14,495,761 | ||||||
Net increase (decrease) in net assets | (95,953,632 | ) | 101,036,075 | |||||
Net assets: | ||||||||
Beginning of period | 688,576,446 | 587,540,371 | ||||||
End of period | $ | 592,622,814 | $ | 688,576,446 |
(1) | The Securities and Exchange Commission eliminated the requirement to disclose distribution components separately, except for tax return of capital. For the year ended August 31, 2018, distributions to shareholders from distributable earnings consisted of distributions from net realized gains. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Small Cap Discovery Fund |
Notes to Financial Statements
February 28, 2019
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Small Cap Discovery 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 anopen-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to seek capital appreciation.
The Fund currently consists of five different classes of shares: Class A, Class C, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with afront-end sales charge unless certain waiver criteria are met. 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, Class R5 and Class R6shares are sold at net asset value.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946,Financial Services - Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations- Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in theover-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments inopen-end andclosed-end registered investment companies that do not trade on an exchange are valued at theend-of-day net asset value per share. Investments inopen-end andclosed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such asinstitution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
11 | Invesco Small Cap Discovery Fund |
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 (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on theex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
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 net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on theex-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 of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses -Fees provided for under the Rule12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6are allocated to each share class based on relative net assets.Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
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 theperiod-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 the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Securities Lending- The Fund may lend portfolio securities having a market value up toone-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund |
12 | Invesco Small Cap Discovery Fund |
will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included inDividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
First $ 500 million | 0.80 | % | ||
Next $500 million | 0.75 | % | ||
Over $1 billion | 0.70 | % |
For the six months ended February 28, 2019, the effective advisory fees incurred by the Fund was 0.79%.
Under the terms of a mastersub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “AffiliatedSub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such AffiliatedSub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such AffiliatedSub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2019, 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 C, Class Y, Class R5 and Class R6shares to 2.00%, 2.75%, 1.75%, 1.75% and 1.75%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause 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 ornon-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2019. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limit.
Further, the Adviser has contractually agreed, through at least June 30, 2020, 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 28, 2019, the Adviser waived advisory fees of $12,160.
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 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into asub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and 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 orsub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer agent fees.
Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A 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% of Class C average daily net assets. The fees are accrued daily and paid monthly.
With respect to 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 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 28, 2019, expenses incurred under these agreements are shown in the Statement of Operations asDistributionfees.
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 28, 2019, IDI advised the Fund that IDI retained $37,115 infront-end sales commissions from the sale of Class A shares and $570 and $546from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
13 | Invesco Small Cap Discovery Fund |
For the six months ended February 28, 2019, the Fund incurred $3,283 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 | – | Prices are determined using quoted prices in an active market for identical assets. | ||
Level 2 | – | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | ||
Level 3 | – | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
As of February 28, 2019, all of the securities in this Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). 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.
NOTE 4–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $2,753.
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, andTrustees’ and Officers’Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan.Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 6–Cash Balances and Borrowings
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any atperiod-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 GAAP. 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 fiscalyear-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. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of August 31, 2018.
14 | Invesco Small Cap Discovery Fund |
NOTE 8–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2019 was $166,535,141 and $210,710,868, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reportingperiod-end.
Unrealized Appreciation (Depreciation)of Investments on a Tax Basis | ||||
Aggregate unrealized appreciation of investments | $ | 154,507,144 | ||
Aggregate unrealized (depreciation) of investments | (23,096,488 | ) | ||
Net unrealized appreciation of investments | $ | 131,410,656 | ||
Cost of investments for tax purposes is $461,084,996. |
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||||||
Six months ended February 28, 2019(a) | Year ended August 31, 2018 | |||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Sold: | ||||||||||||||||||||
Class A | 4,765,533 | $ | 45,247,818 | 6,459,981 | $ | 68,980,444 | ||||||||||||||
Class B(b) | - | - | 920 | 8,474 | ||||||||||||||||
Class C | 413,977 | 2,984,455 | 1,137,617 | 9,252,454 | ||||||||||||||||
Class Y | 656,117 | 6,890,849 | 3,533,312 | 39,828,572 | ||||||||||||||||
Class R5 | 1,057,703 | 10,987,418 | 2,245,993 | 25,810,473 | ||||||||||||||||
Class R6 | 807,839 | 7,917,764 | 2,790,961 | 31,225,274 | ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||||||
Class A | 6,098,828 | 48,926,368 | 4,935,765 | 47,037,844 | ||||||||||||||||
Class B(b) | - | - | 35,283 | 286,498 | ||||||||||||||||
Class C | 1,234,732 | 6,926,845 | 926,228 | 6,641,056 | ||||||||||||||||
Class Y | 1,130,893 | 9,759,607 | 1,252,407 | 12,674,363 | ||||||||||||||||
Class R5 | 677,920 | 5,945,364 | 306,338 | 3,139,965 | ||||||||||||||||
Class R6 | 1,195,184 | 10,529,567 | 954,071 | 9,807,849 | ||||||||||||||||
Conversion of Class B shares to Class A shares:(c) | ||||||||||||||||||||
Class A | - | - | 161,561 | 1,659,234 | ||||||||||||||||
Class B | - | - | (189,455 | ) | (1,659,234 | ) | ||||||||||||||
Reacquired: | ||||||||||||||||||||
Class A | (6,249,498 | ) | (58,825,021 | ) | (10,448,448 | ) | (110,372,125 | ) | ||||||||||||
Class B(b) | - | - | (96,249 | ) | (865,508 | ) | ||||||||||||||
Class C | (2,838,783 | ) | (17,645,489 | ) | (1,708,956 | ) | (13,598,265 | ) | ||||||||||||
Class Y | (1,505,344 | ) | (14,650,676 | ) | (6,233,218 | ) | (69,586,248 | ) | ||||||||||||
Class R5 | (842,022 | ) | (8,548,994 | ) | (744,237 | ) | (8,191,295 | ) | ||||||||||||
Class R6 | (1,484,643 | ) | (15,057,364 | ) | (3,323,420 | ) | (37,584,064 | ) | ||||||||||||
Net increase in share activity | 5,118,436 | $ | 41,388,511 | 1,996,454 | $ | 14,495,761 |
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 27% 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) | Class B shares activity for the period September 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
15 | Invesco Small Cap Discovery Fund |
NOTE 10–Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Distributions from net realized | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment (loss) to average net assets | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $11.74 | $(0.03 | ) | $(1.01 | ) | $(1.04 | ) | $(1.49 | ) | $9.21 | (6.96 | )% | $364,302 | 1.32 | %(d) | 1.32 | %(d) | (0.66 | )%(d) | 29 | % | |||||||||||||||||||||||||||
Year ended 08/31/18 | 10.38 | (0.09 | ) | 2.98 | 2.89 | (1.53 | ) | 11.74 | 31.26 | 410,080 | 1.36 | 1.36 | (0.89 | ) | 49 | |||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 9.05 | (0.08 | ) | 1.58 | 1.50 | (0.17 | ) | 10.38 | 16.87 | 351,214 | 1.39 | 1.39 | (0.88 | ) | 39 | |||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 10.60 | (0.08 | ) | (0.02 | ) | (0.10 | ) | (1.45 | ) | 9.05 | (0.61 | ) | 439,098 | 1.36 | 1.37 | (0.89 | ) | 39 | ||||||||||||||||||||||||||||||
Year ended 08/31/15 | 11.83 | (0.09 | ) | 0.61 | 0.52 | (1.75 | ) | 10.60 | 5.24 | 512,763 | 1.32 | 1.32 | (0.85 | ) | 63 | |||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 12.20 | (0.10 | ) | 1.62 | 1.52 | (1.89 | ) | 11.83 | 13.15 | 527,759 | 1.32 | 1.32 | (0.85 | ) | 79 | |||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 8.78 | (0.05 | ) | (0.81 | ) | (0.86 | ) | (1.49 | ) | 6.43 | (7.30 | )(e) | 25,058 | 2.04 | (d)(e) | 2.04 | (d)(e) | (1.38 | )(d)(e) | 29 | ||||||||||||||||||||||||||||
Year ended 08/31/18 | 8.18 | (0.13 | ) | 2.26 | 2.13 | (1.53 | ) | 8.78 | 30.23 | (e) | 44,642 | 2.07 | (e) | 2.07 | (e) | (1.60 | )(e) | 49 | ||||||||||||||||||||||||||||||
Year ended 08/31/17 | 7.21 | (0.12 | ) | 1.26 | 1.14 | (0.17 | ) | 8.18 | 16.16 | (e) | 38,679 | 2.13 | (e) | 2.13 | (e) | (1.62 | )(e) | 39 | ||||||||||||||||||||||||||||||
Year ended 08/31/16 | 8.81 | (0.12 | ) | (0.03 | ) | (0.15 | ) | (1.45 | ) | 7.21 | (1.39 | )(e) | 47,459 | 2.08 | (e) | 2.09 | (e) | (1.61 | )(e) | 39 | ||||||||||||||||||||||||||||
Year ended 08/31/15 | 10.19 | (0.15 | ) | 0.52 | 0.37 | (1.75 | ) | 8.81 | 4.50 | 62,773 | 2.07 | 2.07 | (1.60 | ) | 63 | |||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 10.83 | (0.17 | ) | 1.42 | 1.25 | (1.89 | ) | 10.19 | 12.21 | 55,961 | 2.07 | 2.07 | (1.60 | ) | 79 | |||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 12.48 | (0.02 | ) | (1.05 | ) | (1.07 | ) | (1.49 | ) | 9.92 | (6.78 | ) | 75,865 | 1.07 | (d) | 1.07 | (d) | (0.41 | )(d) | 29 | ||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.93 | (0.07 | ) | 3.15 | 3.08 | (1.53 | ) | 12.48 | 31.44 | 91,973 | 1.11 | 1.11 | (0.64 | ) | 49 | |||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 9.49 | (0.06 | ) | 1.67 | 1.61 | (0.17 | ) | 10.93 | 17.25 | 96,321 | 1.14 | 1.14 | (0.63 | ) | 39 | |||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 11.02 | (0.06 | ) | (0.02 | ) | (0.08 | ) | (1.45 | ) | 9.49 | (0.39 | ) | 75,188 | 1.11 | 1.12 | (0.64 | ) | 39 | ||||||||||||||||||||||||||||||
Year ended 08/31/15 | 12.20 | (0.07 | ) | 0.64 | 0.57 | (1.75 | ) | 11.02 | 5.51 | 97,497 | 1.07 | 1.07 | (0.60 | ) | 63 | |||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 12.50 | (0.07 | ) | 1.66 | 1.59 | (1.89 | ) | 12.20 | 13.42 | 114,973 | 1.07 | 1.07 | (0.60 | ) | 79 | |||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 12.66 | (0.02 | ) | (1.07 | ) | (1.09 | ) | (1.49 | ) | 10.08 | (6.84 | ) | 48,376 | 0.95 | (d) | 0.95 | (d) | (0.29 | )(d) | 29 | ||||||||||||||||||||||||||||
Year ended 08/31/18 | 11.04 | (0.06 | ) | 3.21 | 3.15 | (1.53 | ) | 12.66 | 31.79 | 49,402 | 0.97 | 0.97 | (0.50 | ) | 49 | |||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 9.57 | (0.05 | ) | 1.69 | 1.64 | (0.17 | ) | 11.04 | 17.42 | 23,137 | 0.94 | 0.94 | (0.43 | ) | 39 | |||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 11.08 | (0.04 | ) | (0.02 | ) | (0.06 | ) | (1.45 | ) | 9.57 | (0.18 | ) | 1,698 | 0.91 | 0.92 | (0.44 | ) | 39 | ||||||||||||||||||||||||||||||
Year ended 08/31/15 | 12.23 | (0.05 | ) | 0.65 | 0.60 | (1.75 | ) | 11.08 | 5.77 | 6,784 | 0.94 | 0.94 | (0.47 | ) | 63 | |||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 12.52 | (0.05 | ) | 1.65 | 1.60 | (1.89 | ) | 12.23 | 13.49 | 45,126 | 0.94 | 0.94 | (0.47 | ) | 79 | |||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 12.70 | (0.01 | ) | (1.07 | ) | (1.08 | ) | (1.49 | ) | 10.13 | (6.73 | ) | 79,022 | 0.86 | (d) | 0.86 | (d) | (0.20 | )(d) | 29 | ||||||||||||||||||||||||||||
Year ended 08/31/18 | 11.07 | (0.05 | ) | 3.21 | 3.16 | (1.53 | ) | 12.70 | 31.80 | 92,480 | 0.88 | 0.88 | (0.41 | ) | 49 | |||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 9.59 | (0.04 | ) | 1.69 | 1.65 | (0.17 | ) | 11.07 | 17.49 | 75,929 | 0.90 | 0.90 | (0.39 | ) | 39 | |||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 11.09 | (0.04 | ) | (0.01 | ) | (0.05 | ) | (1.45 | ) | 9.59 | (0.08 | ) | 73,299 | 0.86 | 0.87 | (0.39 | ) | 39 | ||||||||||||||||||||||||||||||
Year ended 08/31/15 | 12.25 | (0.04 | ) | 0.63 | 0.59 | (1.75 | ) | 11.09 | 5.66 | 76,687 | 0.85 | 0.85 | (0.38 | ) | 63 | |||||||||||||||||||||||||||||||||
Year ended 08/31/14 | 12.52 | (0.04 | ) | 1.66 | 1.62 | (1.89 | ) | 12.25 | 13.67 | 109,145 | 0.84 | 0.84 | (0.37 | ) | 79 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $354,296, $35,865, $78,096, $44,655, and $79,536and for Class A, Class C, Class Y, Class R5, and Class R6shares, respectively. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual12b-1 fees of 0.97%, 0.96%, 0.99% and 0.97% for the six months ended February 28, 2019 and for the years ended August 31, 2018, 2017 and 2016, respectively. |
16 | Invesco Small Cap Discovery Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service(12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2018 through February 28, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||
Beginning Account Value | Ending Account Value (02/28/19)1 | Expenses Paid During Period2 | Ending Account Value (02/28/19) | Expenses Paid During Period2 | Annualized Expense Ratio | |||||||
Class A | $1,000.00 | $930.40 | $6.32 | $1,018.25 | $6.61 | 1.32% | ||||||
Class C | 1,000.00 | 927.00 | 9.75 | 1,014.68 | 10.19 | 2.04 | ||||||
Class Y | 1,000.00 | 932.20 | 5.13 | 1,019.49 | 5.36 | 1.07 | ||||||
Class R5 | 1,000.00 | 931.60 | 4.55 | 1,020.08 | 4.76 | 0.95 | ||||||
Class R6 | 1,000.00 | 932.70 | 4.12 | 1,020.53 | 4.31 | 0.86 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2018 through February 28, 2019, 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 181/365 to reflect the most recent fiscal half year. |
17 | Invesco Small Cap Discovery Fund |
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Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on FormN-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s FormsN-Q (or any successor Form) on the SEC website at sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov. | ![]() | |
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd. |
SEC file numbers:811-09913 and333-36074 | Invesco Distributors, Inc. | VK-SCD-SAR-1 | 04262019 | 1342 |
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![]() | Semiannual Report to Shareholders
| February 28, 2019 | ||
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Invesco Strategic Real Return Fund
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Nasdaq: | ||||
A: SRRAX ∎ C: SRRCX ∎ R: SRRQX ∎ Y: SRRYX ∎ R5: SRRFX ∎ R6: SRRSX |
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2
| Fund Performance
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4
| Letters to Shareholders
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5
| Schedule of Investments
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15
| Financial Statements
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18
| Notes to Financial Statements
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23
| Financial Highlights
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25 | Fund Expenses
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800 959 4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most currentmonth-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
Performance summary
|
| |||
Fund vs. Indexes | ||||
Cumulative total returns, 8/31/18 to 2/28/19, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) orfront-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 0.52 | % | ||
Class C Shares | 0.14 | |||
Class R Shares | 0.39 | |||
Class Y Shares | 0.54 | |||
Class R5 Shares | 0.54 | |||
Class R6 Shares | 0.54 | |||
ICE BoAML US Inflation-Linked Treasury Indexq (Broad Market Index) | -0.30 | |||
ICE BofAML Current10-Year US Treasury Index∎(Former Broad Market Index) | 2.57 | |||
Custom Invesco Strategic Real Return Index◆(Style-Specific Index) | 0.77 | |||
Lipper Inflation Protected Bond Funds Indexp(Peer Group Index) | -0.06 | |||
Source(s):qRIMES Technologies Corp.;∎Bloomberg L.P.; ◆Invesco, Bloomberg LP, FactSet Research Systems Inc., RIMES Technologies Corp.; pLipper Inc. |
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TheICE BofAML US Inflation-Linked Treasury Indextracks the performance of US dollar-denominated inflation-linked sovereign debt publicly issued by the US government in its domestic market. TheICE BofAML Current10-Year US Treasury Indexis composed of the most recently issued10-year US Treasury note. TheCustom Invesco Strategic Real Return Indexconsists of 45% ICE BofAML US Inflation-Linked Treasury Index, 30% S&P/LSTA Leveraged Loan Index and 25% ICE BofAML US High Yield Constrained Index. |
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TheLipper Inflation Protected Bond Funds Indexis an unmanaged index considered representative of inflation protected bond funds tracked by Lipper. TheS&P/LSTA Leveraged Loan Indexreflects the performance of US dollar-denominated institutional leveraged loans. TheICE BofAML US High Yield Constrained Indextracks the performance of US high yield bonds. The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
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CE Data Indices and its affiliates (ICE BofAML) indices and related information, the name “ICE BofAML” and related trademarks, are intellectual property licensed from ICE BofAML, and may not be copied, used or distributed without ICE BofAML’s prior written approval. The licensee’s products have not been passed on as to their legality or suitability, and are not regulated, issued, endorsed, sold, guaranteed or promoted by ICE BofAML. ICE BOFAML MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO THE INDICES, ANY RELATED INFORMATION, ITS TRADEMARKS, OR THE PRODUCT(S) (INCLUDING WITHOUT LIMITATION, THEIR QUALITY, ACCURACY, SUITABILITY AND/OR COMPLETENESS). |
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For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
2 Invesco Strategic Real Return Fund
Average Annual Total Returns |
| |||||
As of 2/28/19, including maximum applicable sales charges
| ||||||
Class A Shares |
| |||||
Inception (4/30/14) | 1.68 | % | ||||
1 Year | -0.31 | |||||
Class C Shares* |
| |||||
Inception (4/30/14) | 1.45 | % | ||||
1 Year | 0.55 | |||||
Class R Shares |
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Inception (4/30/14) | 1.97 | % | ||||
1 Year | 2.04 | |||||
Class Y Shares |
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Inception (4/30/14) | 2.47 | % | ||||
1 Year | 2.56 | |||||
Class R5 Shares |
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Inception (4/30/14) | 2.47 | % | ||||
1 Year | 2.56 | |||||
Class R6 Shares |
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Inception (4/30/14) | 2.47 | % | ||||
1 Year | 2.55 | |||||
*Effective January 26, 2019, Class C share performance includes the conversion to A sharesafter 10 years. |
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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 recentmonth-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 C, Class R, Class Y, Class R5 and Class R6 shares was 0.82%, 1.57%, 1.07%, 0.57%, 0.57%, and 0.57%, respectively.1,2,3 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, Class R5 and Class R6 shares was 1.88%, 2.63%, 2.13%, 1.63%, 1.56% and 1.56%, respectively.1 The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses
Average Annual Total Returns |
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As of 12/31/18, the most recent calendar quarter end, including maximum applicable sales charges
|
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Class A Shares |
| |||||
Inception (4/30/14) | 1.03 | % | ||||
1 Year | -4.29 | |||||
Class C Shares |
| |||||
Inception (4/30/14) | 0.81 | % | ||||
1 Year | -3.51 | |||||
Class R Shares |
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Inception (4/30/14) | 1.33 | % | ||||
1 Year | -2.07 | |||||
Class Y Shares |
| |||||
Inception (4/30/14) | 1.83 | % | ||||
1 Year | -1.57 | |||||
Class R5 Shares |
| |||||
Inception (4/30/14) | 1.83 | % | ||||
1 Year | -1.57 | |||||
Class R6 Shares |
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Inception (4/30/14) | 1.83 | % | ||||
1 Year | -1.57 |
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, Class R5 and Class R6 shares do not have afront-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
1 | The expense ratio includes acquired fund fees and expenses of the underlying funds in which the Fund invests of 0.21%. |
2 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least December 31, 2019. See current prospectus for more information. |
3 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2020. See current prospectus for more information. |
3 Invesco Strategic Real Return Fund
Bruce Crockett | Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time; monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory andsub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper, Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward. Our website,invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings |
and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
4 Invesco Strategic Real Return Fund
February 28, 2019
(Unaudited)
Principal Amount | Value | |||||||
| ||||||||
U.S. Treasury Securities-45.49% |
| |||||||
U.S. Treasury Inflation — Indexed Bonds-17.07%(b) |
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2.38%, 01/15/2025 | $ | 584,378 | $ | 642,046 | ||||
| ||||||||
0.38%, 07/15/2025 | 699,184 | 688,334 | ||||||
| ||||||||
2.00%, 01/15/2026 | 392,444 | 426,707 | ||||||
| ||||||||
2.38%, 01/15/2027 | 313,105 | 352,017 | ||||||
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1.75%, 01/15/2028 | 297,801 | 322,727 | ||||||
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3.63%, 04/15/2028 | 412,141 | 514,560 | ||||||
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0.75%, 07/15/2028 | 589,577 | 590,280 | ||||||
| ||||||||
2.50%, 01/15/2029 | 257,698 | 299,521 | ||||||
| ||||||||
3.88%, 04/15/2029 | 469,378 | 608,926 | ||||||
| ||||||||
3.38%, 04/15/2032 | 108,715 | 143,121 | ||||||
| ||||||||
2.13%, 02/15/2040 | 283,185 | 340,630 | ||||||
| ||||||||
2.13%, 02/15/2041 | 420,852 | 508,445 | ||||||
| ||||||||
0.75%, 02/15/2042 | 416,323 | 387,619 | ||||||
| ||||||||
0.63%, 02/15/2043 | 387,313 | 348,249 | ||||||
| ||||||||
1.38%, 02/15/2044 | 390,488 | 413,067 | ||||||
| ||||||||
0.75%, 02/15/2045 | 390,419 | 358,164 | ||||||
| ||||||||
1.00%, 02/15/2046 | 328,730 | 319,632 | ||||||
| ||||||||
0.88%, 02/15/2047 | 303,729 | 286,042 | ||||||
| ||||||||
1.00%, 02/15/2048 | 306,083 | 297,445 | ||||||
| ||||||||
7,847,532 | ||||||||
| ||||||||
U.S. Treasury Inflation – Indexed Notes-28.42%(b) |
| |||||||
0.13%, 04/15/2020 | 836,571 | 830,362 | ||||||
| ||||||||
1.25%, 07/15/2020 | 592,541 | 600,549 | ||||||
| ||||||||
1.13%, 01/15/2021 | 668,606 | 674,646 | ||||||
| ||||||||
0.13%, 04/15/2021 | 744,218 | 734,639 | ||||||
| ||||||||
0.63%, 07/15/2021 | 620,286 | 622,848 | ||||||
| ||||||||
0.13%, 01/15/2022 | 732,353 | 721,747 | ||||||
| ||||||||
0.13%, 04/15/2022 | 737,684 | 724,788 | ||||||
| ||||||||
0.13%, 07/15/2022 | 703,757 | 694,918 | ||||||
| ||||||||
0.13%, 01/15/2023 | 691,338 | 677,984 | ||||||
| ||||||||
0.63%, 04/15/2023 | 760,794 | 759,851 | ||||||
| ||||||||
0.38%, 07/15/2023 | 694,342 | 689,881 | ||||||
| ||||||||
0.63%, 01/15/2024 | 700,168 | 700,612 | ||||||
| ||||||||
0.13%, 07/15/2024 | 696,712 | 680,975 | ||||||
| ||||||||
0.25%, 01/15/2025 | 674,051 | 658,253 | ||||||
| ||||||||
0.63%, 01/15/2026 | 698,657 | 695,689 | ||||||
| ||||||||
0.13%, 07/15/2026 | 613,634 | 589,772 | ||||||
| ||||||||
0.38%, 01/15/2027 | 637,208 | 619,585 | ||||||
| ||||||||
0.38%, 07/15/2027 | 598,115 | 582,018 | ||||||
| ||||||||
0.50%, 01/15/2028 | 617,697 | 603,540 | ||||||
| ||||||||
0.88%, 01/15/2029 | 196,033 | 197,955 | ||||||
| ||||||||
13,060,612 | ||||||||
| ||||||||
Total U.S. Treasury Securities (Cost $21,089,065) | 20,908,144 | |||||||
|
Shares | Value | |||||||
| ||||||||
Common Stocks & Other Equity Interests-31.45% |
| |||||||
Fixed Income Fund-31.45% | ||||||||
Invesco Floating Rate Fund, Class R6(c) | 1,940,181 | $ | 14,454,350 | |||||
| ||||||||
Managed Health Care-0.00% | ||||||||
Anthem, Inc. | 1 | 293 | ||||||
| ||||||||
Total Common Stocks & Other Equity Interests (Cost $14,765,604) |
| 14,454,643 | ||||||
| ||||||||
Principal | ||||||||
Amount | ||||||||
U.S. Dollar Denominated Bonds & Notes-21.08% |
| |||||||
Aerospace & Defense-0.52% | ||||||||
BBA U.S. Holdings, Inc., Sr. Unsec. Notes, 5.38%, 05/01/2026(d) | $ | 8,000 | 8,170 | |||||
| ||||||||
Bombardier, Inc. (Canada), Sr. Unsec. Notes, 8.75%, 12/01/2021(d) | 19,000 | 20,971 | ||||||
| ||||||||
5.75%, 03/15/2022(d) | 23,000 | 23,161 | ||||||
| ||||||||
6.13%, 01/15/2023(d) | 24,000 | 24,240 | ||||||
| ||||||||
7.50%, 03/15/2025(d) | 19,000 | 19,095 | ||||||
| ||||||||
Moog, Inc., Sr. Unsec. Gtd.Notes, 5.25%, 12/01/2022(d) | 12,000 | 12,220 | ||||||
| ||||||||
TransDigm, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 6.50%, 07/15/2024 | 4,000 | 4,050 | ||||||
| ||||||||
6.50%, 05/15/2025 | 53,000 | 53,000 | ||||||
| ||||||||
Sr. Unsec. Sub. Global Notes, 6.38%, 06/15/2026 | 23,000 | 22,454 | ||||||
| ||||||||
Triumph Group, Inc., Sr. Unsec. Gtd. Global Notes, 7.75%, 08/15/2025 | 36,000 | 34,290 | ||||||
| ||||||||
Sr. Unsec. Sub. Gtd. Global Notes, 4.88%, 04/01/2021 | 16,000 | 15,840 | ||||||
| ||||||||
237,491 | ||||||||
| ||||||||
Agricultural & Farm Machinery-0.08% |
| |||||||
Titan International, Inc., Sr. Sec. Gtd. | 40,000 | 37,500 | ||||||
| ||||||||
Air Freight & Logistics-0.01% | ||||||||
XPO Logistics, Inc., Sr. Unsec. Gtd.Notes, 6.50%, 06/15/2022(d) | 6,000 | 6,128 | ||||||
| ||||||||
Alternative Carriers-0.22% | ||||||||
CenturyLink, Inc., Series S, Sr. Unsec. Notes, 6.45%, 06/15/2021 | 18,000 | 18,743 | ||||||
| ||||||||
Series Y, Sr. Unsec. Global Notes, 7.50%, 04/01/2024 | 24,000 | 25,447 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 Invesco Strategic Real Return Fund
Principal Amount | Value | |||||||
| ||||||||
Alternative Carriers-(continued) | ||||||||
Level 3 Financing, Inc., | $ | 44,000 | $ | 44,000 | ||||
| ||||||||
5.25%, 03/15/2026 | 14,000 | 13,773 | ||||||
| ||||||||
101,963 | ||||||||
| ||||||||
Aluminum-0.59% | ||||||||
Alcoa Nederland Holding B.V., Sr. Unsec. | 200,000 | 212,250 | ||||||
| ||||||||
Novelis Corp., | 56,000 | 56,543 | ||||||
| ||||||||
5.88%, 09/30/2026(d) | 2,000 | 1,955 | ||||||
| ||||||||
270,748 | ||||||||
| ||||||||
Apparel Retail-0.16% | ||||||||
Hot Topic, Inc., Sr. Sec. Gtd. First Lien Notes, 9.25%, 06/15/2021(d) | 19,000 | 19,143 | ||||||
| ||||||||
L Brands, Inc., | 46,000 | 46,920 | ||||||
| ||||||||
6.88%, 11/01/2035 | 8,000 | 6,940 | ||||||
| ||||||||
6.75%, 07/01/2036 | 2,000 | 1,700 | ||||||
| ||||||||
74,703 | ||||||||
| ||||||||
Asset Management & Custody Banks-0.12% |
| |||||||
Prime Security Services Borrower LLC/ Prime Finance, Inc., Sec. Gtd. Second Lien Notes, 9.25%, 05/15/2023(d) | 52,000 | 54,964 | ||||||
| ||||||||
Auto Parts & Equipment-0.19% | ||||||||
Dana Financing Luxembourg S.a.r.l., Sr. Unsec. Gtd. Notes, 5.75%, 04/15/2025(d) | 30,000 | 29,963 | ||||||
| ||||||||
Delphi Technologies PLC, Sr. Unsec. Gtd. Notes, 5.00%, 10/01/2025(d) | 15,000 | 13,406 | ||||||
| ||||||||
Flexi-Van Leasing, Inc., Sec. Second Lien Notes, 10.00%, 02/15/2023(d) | 12,000 | 10,200 | ||||||
| ||||||||
Hertz Corp. (The), Sec. Gtd. Second Lien Notes, 7.63%, 06/01/2022(d) | 12,000 | 12,300 | ||||||
| ||||||||
Tenneco Inc., Sr. Unsec. Gtd. Global Notes, 5.38%, 12/15/2024 | 25,000 | 23,156 | ||||||
| ||||||||
89,025 | ||||||||
| ||||||||
Automobile Manufacturers-0.11% | ||||||||
J.B. Poindexter & Co., Inc., Sr. Unsec. Bonds, 7.13%, 04/15/2026(d) | 50,000 | 49,375 | ||||||
| ||||||||
Automotive Retail-0.29% | ||||||||
Lithia Motors, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 08/01/2025(d) | 7,000 | 6,956 | ||||||
| ||||||||
Murphy Oil USA, Inc., Sr. Unsec. Gtd. Global Notes, 5.63%, 05/01/2027 | 42,000 | 42,525 | ||||||
| ||||||||
Penske Automotive Group, Inc., Sr. Unsec. Sub. Gtd. Notes, 5.50%, 05/15/2026 | 83,000 | 81,751 | ||||||
| ||||||||
131,232 | ||||||||
|
Principal Amount | Value | |||||||
| ||||||||
Broadcasting-0.60% | ||||||||
AMC Networks, Inc., Sr. Unsec. Gtd.Global Notes, 5.00%, 04/01/2024 | $ | 68,000 | $ | 67,639 | ||||
| ||||||||
Clear Channel Worldwide Holdings, Inc., | 23,000 | 23,098 | ||||||
| ||||||||
Gray Escrow, Inc., Sr. Unsec. Notes, | 16,000 | 16,960 | ||||||
| ||||||||
Liberty Interactive LLC, | 25,000 | 28,812 | ||||||
| ||||||||
3.50%, 01/15/2031 | 50,000 | 38,477 | ||||||
| ||||||||
Netflix, Inc., | 43,000 | 45,815 | ||||||
| ||||||||
Sr. Unsec. Notes, 5.88%, 11/15/2028(d) | 20,000 | 20,881 | ||||||
| ||||||||
Nexstar Broadcasting, Inc., Sr. Unsec. Gtd. Notes, 5.63%, 08/01/2024(d) | 36,000 | 35,820 | ||||||
| ||||||||
277,502 | ||||||||
| ||||||||
Building Products-0.06% | ||||||||
Standard Industries, Inc., Sr. Unsec. Notes, 5.00%, 02/15/2027(d) | 27,000 | 25,785 | ||||||
| ||||||||
Cable & Satellite-3.04% | ||||||||
Altice Financing S.A. (Luxembourg), Sr. Sec. Gtd. First Lien Notes, 6.63%, 02/15/2023(d) | 200,000 | 205,998 | ||||||
| ||||||||
CCO Holdings LLC/CCO Holdings Capital Corp., Sr. Unsec. Global Notes, 5.75%, 09/01/2023 | 20,000 | 20,425 | ||||||
| ||||||||
Sr. Unsec. Notes, 5.75%, 02/15/2026(d) | 111,000 | 115,306 | ||||||
| ||||||||
CSC Holdings LLC, Sr. Unsec. Global Notes, 6.75%, 11/15/2021 | 97,000 | 103,547 | ||||||
| ||||||||
DISH DBS Corp., | 25,000 | 25,562 | ||||||
| ||||||||
5.88%, 11/15/2024 | 102,000 | 86,287 | ||||||
| ||||||||
DISH Network Corp., Sr. Unsec. Conv. Bonds, 3.38%, 08/15/2026 | 100,000 | 86,140 | ||||||
| ||||||||
Intelsat Jackson Holdings S.A. (Luxembourg), Sr. Unsec. Gtd.Global Bonds, 5.50%, 08/01/2023 | 86,000 | 79,335 | ||||||
| ||||||||
Sr. Unsec. Gtd. Notes, 8.50%, 10/15/2024(d) | 25,000 | 25,368 | ||||||
| ||||||||
Sirius XM Radio, Inc., | 15,000 | 15,600 | ||||||
| ||||||||
5.38%, 07/15/2026(d) | 42,000 | 42,262 | ||||||
| ||||||||
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH (Germany), Sr. Sec. Gtd. First Lien Bonds, 5.00%, 01/15/2025(d) | 201,000 | 206,779 | ||||||
| ||||||||
Virgin Media Bristol LLC (United Kingdom), Sr. Sec. Gtd. First Lien Notes, 5.50%, 08/15/2026(d) | 200,000 | 199,500 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Strategic Real Return Fund
Principal Amount | Value | |||||||
| ||||||||
Cable & Satellite-(continued) | ||||||||
VTR Finance B.V. (Chile), Sr. Sec. First Lien Notes, 6.88%, 01/15/2024(d) | $ | 180,000 | $ | 185,625 | ||||
| ||||||||
1,397,734 | ||||||||
| ||||||||
Casinos & Gaming-0.40% | ||||||||
Boyd Gaming Corp., Sr. Unsec. Gtd. Global Notes, 6.88%, 05/15/2023 | 8,000 | 8,390 | ||||||
| ||||||||
6.38%, 04/01/2026 | 61,000 | 63,821 | ||||||
| ||||||||
MGM Resorts International, Sr. Unsec. Gtd. Notes, 7.75%, 03/15/2022 | 40,000 | 44,000 | ||||||
| ||||||||
4.63%, 09/01/2026 | 17,000 | 16,235 | ||||||
| ||||||||
Scientific Games International, Inc., Sr. Unsec. Gtd. Global Notes, 10.00%, 12/01/2022 | 24,000 | 25,320 | ||||||
| ||||||||
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., Sr. Unsec. Gtd. Notes, 5.50%, 03/01/2025(d) | 28,000 | 27,974 | ||||||
| ||||||||
185,740 | ||||||||
| ||||||||
Coal & Consumable Fuels-0.12% | ||||||||
SunCoke Energy Partners L.P./SunCoke Energy Partners Finance Corp., Sr. Unsec. Gtd. Notes, 7.50%, 06/15/2025(d) | 55,000 | 56,100 | ||||||
| ||||||||
Commodity Chemicals-0.13% | ||||||||
Koppers, Inc., Sr. Unsec. Gtd. Notes, 6.00%, 02/15/2025(d) | 57,000 | 50,160 | ||||||
| ||||||||
Nufarm Australia Ltd./Nufarm Americas, Inc. (Australia), Sr. Unsec. Gtd. Notes, 5.75%, 04/30/2026(d) | 12,000 | 11,243 | ||||||
| ||||||||
61,403 | ||||||||
| ||||||||
Communications Equipment-0.22% |
| |||||||
CommScope Technologies LLC, Sr. Unsec. Gtd. Notes, 6.00%, 06/15/2025(d) | 53,000 | 50,217 | ||||||
| ||||||||
Hughes Satellite Systems Corp., Sr. Sec. Gtd. First Lien Global Notes, 5.25%, 08/01/2026 | 31,000 | 30,419 | ||||||
| ||||||||
Sr. Unsec. Gtd. Global Notes, 7.63%, 06/15/2021 | 17,000 | 18,275 | ||||||
| ||||||||
98,911 | ||||||||
| ||||||||
Construction & Engineering-0.06% | ||||||||
AECOM, Sr. Unsec. Gtd. Global Notes, 5.13%, 03/15/2027 | 23,000 | 21,936 | ||||||
| ||||||||
William Lyon Homes, Inc., Sr. Unsec. Gtd. Global Notes, 6.00%, 09/01/2023 | 5,000 | 4,675 | ||||||
| ||||||||
26,611 | ||||||||
| ||||||||
Construction Machinery & Heavy Trucks-0.19% |
| |||||||
Meritor, Inc., Sr. Unsec. Gtd. Notes, 6.25%, 02/15/2024 | 50,000 | 51,063 | ||||||
| ||||||||
Terex Corp., Sr. Unsec. Gtd. Notes, 5.63%, 02/01/2025(d) | 35,000 | 34,081 | ||||||
| ||||||||
85,144 | ||||||||
|
Principal Amount | Value | |||||||
| ||||||||
Consumer Finance-0.44% | ||||||||
Ally Financial, Inc., Sr. Unsec. Global Notes, 5.13%, 09/30/2024 | $ | 65,000 | $ | 68,412 | ||||
| ||||||||
4.63%, 03/30/2025 | 10,000 | 10,222 | ||||||
| ||||||||
Sr. Unsec. Gtd. Global Notes, 8.00%, 03/15/2020 | 15,000 | 15,731 | ||||||
| ||||||||
Discover Financial Services, Class C, Jr. Unsec. Sub. Global Notes, 5.50%(f) | 11,000 | 10,355 | ||||||
| ||||||||
Navient Corp., Sr. Unsec. Medium-Term Notes, 8.00%, 03/25/2020 | 20,000 | 20,937 | ||||||
| ||||||||
7.25%, 01/25/2022 | 60,000 | 63,150 | ||||||
| ||||||||
Sr. Unsec. Unsub. Global Notes, 7.25%, 09/25/2023 | 13,000 | 13,455 | ||||||
| ||||||||
202,262 | ||||||||
| ||||||||
Copper-0.28% | ||||||||
First Quantum Minerals Ltd. (Zambia), Sr. Unsec. Gtd. Notes, 7.00%, 02/15/2021(d) | 61,000 | 62,121 | ||||||
| ||||||||
Freeport-McMoRan Inc., Sr. Unsec. Gtd. Global Notes, 5.40%, 11/14/2034 | 37,000 | 33,947 | ||||||
| ||||||||
Taseko Mines Ltd. (Canada), Sr. Sec. Gtd. First Lien Notes, 8.75%, 06/15/2022(d) | 33,000 | 30,855 | ||||||
| ||||||||
126,923 | ||||||||
| ||||||||
Data Processing & Outsourced Services-0.19% |
| |||||||
First Data Corp., Sec. Gtd. Second Lien Notes, 5.75%, 01/15/2024(d) | 75,000 | 77,688 | ||||||
| ||||||||
Sr. Sec. Gtd. First Lien Notes, 5.00%, 01/15/2024(d) | 8,000 | 8,215 | ||||||
| ||||||||
85,903 | ||||||||
| ||||||||
Diversified Banks-0.16% | ||||||||
Citigroup Inc., Series A, Jr. Unsec. Sub. Global Notes, 5.95%(f) | 24,000 | 24,517 | ||||||
| ||||||||
Royal Bank of Scotland Group PLC (The) (United Kingdom), Unsec. Sub. Global Notes, 6.00%, 12/19/2023 | 45,000 | 47,323 | ||||||
| ||||||||
71,840 | ||||||||
| ||||||||
Diversified Chemicals-0.08% | ||||||||
Chemours Co. (The), Sr. Unsec. Gtd. Global Notes, 6.63%, 05/15/2023 | 6,000 | 6,248 | ||||||
| ||||||||
7.00%, 05/15/2025 | 21,000 | 21,945 | ||||||
| ||||||||
Trinseo Materials Operating S.C.A./Trinseo Materials Finance, Inc., Sr. Unsec. Gtd. Notes, 5.38%, 09/01/2025(d) | 8,000 | 7,560 | ||||||
| ||||||||
35,753 | ||||||||
| ||||||||
Diversified Metals & Mining-0.14% | ||||||||
| ||||||||
Hudbay Minerals, Inc. (Canada), Sr. Unsec. Gtd. Notes, 7.63%, 01/15/2025(d) | 41,000 | 42,691 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Strategic Real Return Fund
Principal Amount | Value | |||||||
| ||||||||
Diversified Metals & Mining-(continued) |
| |||||||
Teck Resources Ltd. (Canada), Sr. Unsec. Notes, 6.13%, 10/01/2035 | $ | 20,000 | $ | 21,169 | ||||
| ||||||||
63,860 | ||||||||
| ||||||||
Diversified REITs-0.04% | ||||||||
CyrusOne L.P./CyrusOne Finance Corp., Sr. Unsec. Gtd. Global Notes, | 9,000 | 9,180 | ||||||
| ||||||||
5.38%, 03/15/2027 | 9,000 | 9,180 | ||||||
| ||||||||
18,360 | ||||||||
| ||||||||
Electric Utilities-0.10% | ||||||||
NextEra Energy Capital Holdings, Inc., Series K, Jr. Unsec. Gtd. Sub. Investment Units, 5.25%, 06/01/2076 | 1,500 | 37,890 | ||||||
| ||||||||
Southern Co. (The), Series B, Jr. Unsec. Sub. Global Floating Rate Notes, | 7,000 | 7,041 | ||||||
| ||||||||
44,931 | ||||||||
| ||||||||
Electrical Components & Equipment-0.13% |
| |||||||
EnerSys, Sr. Unsec. Gtd. Notes, 5.00%, 04/30/2023(d) | 60,000 | 60,000 | ||||||
| ||||||||
Electronic Equipment & Instruments-0.03% |
| |||||||
Itron, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 01/15/2026(d) | 15,000 | 14,625 | ||||||
| ||||||||
Environmental & Facilities Services-0.23% |
| |||||||
Core & Main L.P., Sr. Unsec. Notes, 6.13%, 08/15/2025(d) | 30,000 | 29,025 | ||||||
| ||||||||
Hulk Finance Corp. (Canada), Sr. Unsec. Notes, 7.00%, 06/01/2026(d) | 63,000 | 60,008 | ||||||
| ||||||||
Waste Pro USA, Inc., Sr. Unsec. Notes, 5.50%, 02/15/2026(d) | 16,000 | 15,600 | ||||||
| ||||||||
104,633 | ||||||||
| ||||||||
Financial Exchanges & Data-0.05% | ||||||||
MSCI, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 11/15/2024(d) | 20,000 | 20,600 | ||||||
| ||||||||
Food Distributors-0.10% | ||||||||
US Foods, Inc., Sr. Unsec. Gtd. Notes, 5.88%, 06/15/2024(d) | 46,000 | 47,105 | ||||||
| ||||||||
Food Retail-0.15% | ||||||||
Albertsons Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC, | 42,000 | 42,210 | ||||||
| ||||||||
Sr. Unsec. Gtd. Notes, 7.50%, 03/15/2026(d) | 27,000 | 27,945 | ||||||
| ||||||||
70,155 | ||||||||
|
Principal Amount | Value | |||||||
| ||||||||
Gas Utilities-0.37% | ||||||||
AmeriGas Partners, L.P./AmeriGas Finance Corp., | $ | 15,000 | $ | 15,225 | ||||
| ||||||||
5.88%, 08/20/2026 | 62,000 | 62,446 | ||||||
| ||||||||
Ferrellgas L.P./Ferrellgas Finance Corp., | 22,000 | 19,800 | ||||||
| ||||||||
Sr. Unsec. Gtd. Global Notes, 6.75%, 06/15/2023 | 7,000 | 6,300 | ||||||
| ||||||||
Suburban Propane Partners, L.P./Suburban Energy Finance Corp., Sr. Unsec. Global Notes, 5.50%, 06/01/2024 | 65,000 | 64,513 | ||||||
| ||||||||
168,284 | ||||||||
| ||||||||
Health Care Equipment-0.13% | ||||||||
Hill-Rom Holdings, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 02/15/2025(d) | 33,000 | 33,000 | ||||||
| ||||||||
Teleflex Inc., Sr. Unsec. Gtd. Global Notes, 4.88%, 06/01/2026 | 28,000 | 28,525 | ||||||
| ||||||||
61,525 | ||||||||
| ||||||||
Health Care Facilities-0.72% | ||||||||
Acadia Healthcare Co., Inc., Sr. Unsec. Gtd. Global Notes, 6.50%, 03/01/2024 | 40,000 | 40,000 | ||||||
| ||||||||
Community Health Systems, Inc., Sr. Sec. Gtd. First Lien Notes, 6.25%, 03/31/2023 | 24,000 | 23,190 | ||||||
| ||||||||
Encompass Health Corp., Sr. Unsec. Gtd. Global Notes, 5.75%, 09/15/2025 | 30,000 | 30,450 | ||||||
| ||||||||
HCA, Inc., Sr. Sec. Gtd. First Lien Notes, 5.25%, 04/15/2025 | 67,000 | 71,092 | ||||||
| ||||||||
5.50%, 06/15/2047 | 45,000 | 46,500 | ||||||
| ||||||||
Sr. Unsec. Gtd. Notes, 5.38%, 02/01/2025 | 10,000 | 10,397 | ||||||
| ||||||||
5.88%, 02/15/2026 | 32,000 | 33,880 | ||||||
| ||||||||
5.38%, 09/01/2026 | 10,000 | 10,294 | ||||||
| ||||||||
Tenet Healthcare Corp., Sr. Unsec. Global Notes, 8.13%, 04/01/2022 | 9,000 | 9,641 | ||||||
| ||||||||
6.75%, 06/15/2023 | 54,000 | 55,552 | ||||||
| ||||||||
330,996 | ||||||||
| ||||||||
Health Care REITs-0.07% | ||||||||
MPT Operating Partnership L.P./MPT Finance Corp., Sr. Unsec. Gtd. Global Notes, 5.00%, 10/15/2027 | 34,000 | 33,830 | ||||||
| ||||||||
Health Care Services-0.48% | ||||||||
AMN Healthcare, Inc., Sr. Unsec. Gtd. Notes, 5.13%, 10/01/2024(d) | 10,000 | 9,900 | ||||||
| ||||||||
Community Health Systems, Inc., Sr. Sec. Notes, 8.00%, 03/15/2026(d) | 26,000 | 25,658 | ||||||
| ||||||||
DaVita, Inc., Sr. Unsec. Gtd. Global Notes, 5.00%, 05/01/2025 | 22,000 | 21,306 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Strategic Real Return Fund
Principal Amount | Value | |||||||
| ||||||||
Health Care Services-(continued) |
| |||||||
Eagle Holding Co. II, LLC, Sr. Unsec. PIK Notes, 8.38% PIK Rate, 7.63% Cash Rate, 05/15/2022(d)(h) | $ | 13,000 | $ | 13,065 | ||||
| ||||||||
Heartland Dental, LLC, Sr. Unsec. Notes, 8.50%, 05/01/2026(d) | 32,000 | 29,440 | ||||||
| ||||||||
MEDNAX, Inc., Sr. Unsec. Notes, 6.25%, 01/15/2027(d) | 46,000 | 46,370 | ||||||
| ||||||||
MPH Acquisition Holdings LLC, Sr. Unsec. Gtd. Notes, 7.13%, 06/01/2024(d) | 40,000 | 39,950 | ||||||
| ||||||||
Surgery Center Holdings, Inc., Sr. Unsec. Gtd. Notes, 8.88%, 04/15/2021(d) | 21,000 | 21,472 | ||||||
| ||||||||
6.75%, 07/01/2025(d) | 7,000 | 6,405 | ||||||
| ||||||||
Team Health Holdings, Inc., Sr. Unsec. Gtd. Notes, 6.38%, 02/01/2025(d) | 10,000 | 7,988 | ||||||
| ||||||||
221,554 | ||||||||
| ||||||||
Home Improvement Retail-0.05% | ||||||||
Hillman Group, Inc. (The), Sr. Unsec. Gtd. Notes, 6.38%, 07/15/2022(d) | 25,000 | 21,625 | ||||||
| ||||||||
Homebuilding-0.49% | ||||||||
Ashton Woods USA LLC/Ashton Woods Finance Co., Sr. Unsec. Notes, 6.88%, 02/15/2021(d) | 27,000 | 26,055 | ||||||
| ||||||||
Beazer Homes USA, Inc., Sr. Unsec. Gtd. Global Notes, 8.75%, 03/15/2022 | 39,000 | 40,609 | ||||||
| ||||||||
6.75%, 03/15/2025 | 22,000 | 20,598 | ||||||
| ||||||||
5.88%, 10/15/2027 | 3,000 | 2,636 | ||||||
| ||||||||
KB Home, Sr. Unsec. Gtd. Notes, 8.00%, 03/15/2020 | 13,000 | 13,601 | ||||||
| ||||||||
Lennar Corp., Sr. Unsec. Gtd. Global Notes, | 40,000 | 41,350 | ||||||
| ||||||||
5.25%, 06/01/2026 | 14,000 | 14,105 | ||||||
| ||||||||
Meritage Homes Corp., Sr. Unsec. Gtd. Global Notes, | 5,000 | 5,181 | ||||||
| ||||||||
6.00%, 06/01/2025 | 8,000 | 8,260 | ||||||
| ||||||||
SRS Distribution, Inc., Sr. Unsec. Gtd. Notes, 8.25%, 07/01/2026(d) | 12,000 | 11,790 | ||||||
| ||||||||
Taylor Morrison Communities, Inc./Taylor Morrison Holdings II, Inc., Sr. Unsec. Gtd. Notes, | 42,000 | 42,105 | ||||||
| ||||||||
226,290 | ||||||||
| ||||||||
Household Products-0.26% | ||||||||
Reynolds Group Issuer, Inc./LLC, Sr. Sec. Gtd. First Lien Notes, 5.13%, 07/15/2023(d) | 13,000 | 13,016 | ||||||
| ||||||||
Sr. Unsec. Gtd. Notes, 7.00%, 07/15/2024(d) | 57,000 | 58,474 | ||||||
| ||||||||
Spectrum Brands, Inc., Sr. Unsec. Gtd. Global Notes, 5.75%, 07/15/2025 | 48,000 | 47,220 | ||||||
| ||||||||
118,710 | ||||||||
|
Principal Amount | Value | |||||||
| ||||||||
Independent Power Producers & Energy Traders-0.28% |
| |||||||
AES Corp. (The), Sr. Unsec. Notes, 5.50%, 04/15/2025 | $ | 59,000 | $ | 60,991 | ||||
| ||||||||
Calpine Corp., Sr. Unsec. Global Notes, 5.50%, 02/01/2024 | 20,000 | 19,325 | ||||||
| ||||||||
NRG Energy, Inc., Sr. Unsec. Gtd. Global Notes, 6.25%, 05/01/2024 | 18,000 | 18,649 | ||||||
| ||||||||
6.63%, 01/15/2027 | 27,000 | 28,856 | ||||||
| ||||||||
127,821 | ||||||||
| ||||||||
Industrial Machinery-0.27% | ||||||||
Cleaver-Brooks, Inc., Sr. Sec. Notes, 7.88%, 03/01/2023(d) | 37,000 | 36,260 | ||||||
| ||||||||
EnPro Industries, Inc., Sr. Unsec. Gtd. Notes, 5.75%, 10/15/2026(d) | 18,000 | 18,180 | ||||||
| ||||||||
Mueller Industries, Inc., Unsec. Sub. Deb., 6.00%, 03/01/2027 | 21,000 | 20,633 | ||||||
| ||||||||
Stanley Black & Decker Inc., Series C, $5.38 Conv. Investment Units, 5.38%, 05/15/2020 | 500 | 47,950 | ||||||
| ||||||||
123,023 | ||||||||
| ||||||||
Integrated Oil & Gas-0.05% | ||||||||
Petrobras Global Finance B.V. (Brazil), Sr. Unsec. Gtd. Global Notes, 5.75%, 02/01/2029 | 25,000 | 25,038 | ||||||
| ||||||||
Integrated Telecommunication Services-0.65% |
| |||||||
Cincinnati Bell, Inc., Sr. Unsec. Gtd. Notes, 7.00%, 07/15/2024(d) | 11,000 | 10,010 | ||||||
| ||||||||
Sr. Unsec. Notes, 8.00%, 10/15/2025(d) | 3,000 | 2,730 | ||||||
| ||||||||
Frontier Communications Corp., Sr. Unsec. Global Notes, 10.50%, 09/15/2022 | 62,000 | 44,640 | ||||||
| ||||||||
11.00%, 09/15/2025 | 23,000 | 14,806 | ||||||
| ||||||||
Numericable-SFR S.A. (France), Sr. Sec. Gtd. First Lien Notes, 7.38%, 05/01/2026(d) | 200,000 | 197,174 | ||||||
| ||||||||
Telecom Italia Capital S.A. (Italy), Sr. Unsec. Gtd. Global Notes, 6.38%, 11/15/2033 | 2,000 | 1,890 | ||||||
| ||||||||
7.20%, 07/18/2036 | 25,000 | 25,180 | ||||||
| ||||||||
296,430 | ||||||||
| ||||||||
Internet & Direct Marketing Retail-0.06% |
| |||||||
Booking Holdings, Inc., Sr. Unsec. Conv. Notes, 0.90%, 09/15/2021 | 25,000 | 27,422 | ||||||
| ||||||||
Leisure Facilities-0.08% | ||||||||
Cedar Fair L.P./Canada’s Wonderland Co./Magnum Management Corp., Sr. Unsec. Gtd. Global Notes, 5.38%, 06/01/2024 | 15,000 | 15,338 | ||||||
| ||||||||
Six Flags Entertainment Corp., Sr. Unsec. Gtd. Notes, 4.88%, 07/31/2024(d) | 23,000 | 22,712 | ||||||
| ||||||||
38,050 | ||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Strategic Real Return Fund
Principal Amount | Value | |||||||
| ||||||||
Leisure Products-0.04% | ||||||||
Mattel, Inc., Sr. Unsec. Gtd. Notes, 6.75%, 12/31/2025(d) | $ | 18,000 | $ | 17,775 | ||||
| ||||||||
Life & Health Insurance-0.11% | ||||||||
MetLife, Inc., Series D, Jr. Unsec. Sub. Global Floating Rate Notes, 5.88%(f) | 50,000 | 50,426 | ||||||
| ||||||||
Managed Health Care-0.14% | ||||||||
Centene Corp., Sr. Unsec. Notes, 5.38%, 06/01/2026(d) | 17,000 | 17,680 | ||||||
| ||||||||
WellCare Health Plans, Inc., Sr. Unsec. Notes, 5.25%, 04/01/2025 | 30,000 | 30,741 | ||||||
| ||||||||
5.38%, 08/15/2026(d) | 14,000 | 14,438 | ||||||
| ||||||||
62,859 | ||||||||
| ||||||||
Metal & Glass Containers-0.16% | ||||||||
Ball Corp., Sr. Unsec. Gtd. Global Notes, 5.25%, 07/01/2025 | 25,000 | 26,312 | ||||||
| ||||||||
Berry Global, Inc., Sec. Gtd. Second Lien Notes, 5.50%, 05/15/2022 | 23,000 | 23,374 | ||||||
| ||||||||
Flex Acquisition Co., Inc., Sr. Unsec. Notes, 7.88%, 07/15/2026(d) | 21,000 | 20,160 | ||||||
| ||||||||
OI European Group B.V., Sr. Unsec. Gtd. Notes, 4.00%, 03/15/2023(d) | 5,000 | 4,900 | ||||||
| ||||||||
74,746 | ||||||||
| ||||||||
Mortgage REITs-0.27% | ||||||||
Starwood Property Trust, Inc., Sr. Unsec. Conv. Notes, 4.38%, 04/01/2023 | 125,000 | 125,000 | ||||||
| ||||||||
Movies & Entertainment-0.07% | ||||||||
AMC Entertainment Holdings, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 5.75%, 06/15/2025 | 33,000 | 30,566 | ||||||
| ||||||||
Multi-line Insurance-0.11% | ||||||||
Acrisure LLC/Acrisure Finance, Inc., Sr. Sec. Notes, 8.13%, 02/15/2024(d) | 6,000 | 6,158 | ||||||
| ||||||||
AXA S.A. (France), Sr. Unsec. Conv. Bonds, 7.25%, 05/15/2021(d) | 45,000 | 43,222 | ||||||
| ||||||||
49,380 | ||||||||
| ||||||||
Multi-Utilities-0.11% | ||||||||
Dominion Energy, Inc., Series A, Jr. Unsec. Sub. Conv. Investment Units, 6.75%, 08/15/2019 | 1,000 | 49,260 | ||||||
| ||||||||
Oil & Gas Drilling-0.38% | ||||||||
Diamond Offshore Drilling, Inc., Sr. Unsec. Global Notes, 4.88%, 11/01/2043 | 10,000 | 6,300 | ||||||
| ||||||||
Ensco PLC, Sr. Unsec. Global Notes, 7.75%, 02/01/2026 | 49,000 | 41,282 | ||||||
| ||||||||
Noble Holding International Ltd., Sr. Unsec. Gtd. Global Notes, 7.75%, 01/15/2024 | 65,000 | 58,094 | ||||||
|
Principal Amount | Value | |||||||
| ||||||||
Oil & Gas Drilling-(continued) | ||||||||
Precision Drilling Corp. (Canada), Sr. Unsec. Gtd. Global Notes, | $ | 3,382 | $ | 3,416 | ||||
| ||||||||
7.75%, 12/15/2023 | 3,000 | 3,053 | ||||||
| ||||||||
5.25%, 11/15/2024 | 15,000 | 13,725 | ||||||
| ||||||||
Transocean, Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 04/15/2031 | 58,000 | 48,285 | ||||||
| ||||||||
174,155 | ||||||||
| ||||||||
Oil & Gas Equipment & Services-0.07% | ||||||||
Archrock Partners, L.P./Archrock Partners Finance Corp., | 21,000 | 20,895 | ||||||
| ||||||||
SESI LLC, Sr. Unsec. Gtd. Global Notes, 7.13%, 12/15/2021 | 13,000 | 12,090 | ||||||
| ||||||||
32,985 | ||||||||
| ||||||||
Oil & Gas Exploration & Production-1.58% |
| |||||||
Antero Resources Corp., Sr. Unsec. Gtd. Global Notes, | 30,000 | 28,800 | ||||||
| ||||||||
Ascent Resources Utica Holdings, LLC/ARU Finance Corp., Sr. Unsec. Notes, 10.00%, 04/01/2022(d) | 26,000 | 28,145 | ||||||
| ||||||||
California Resources Corp., Sec. Gtd. Second Lien Notes, 8.00%, 12/15/2022(d) | 27,000 | 21,634 | ||||||
| ||||||||
Callon Petroleum Co., Sr. Unsec. Gtd. Global Notes, 6.13%, 10/01/2024 | 52,000 | 52,650 | ||||||
| ||||||||
Continental Resources Inc., Sr. Unsec. Gtd. Global Notes, 3.80%, 06/01/2024 | 40,000 | 39,446 | ||||||
| ||||||||
Denbury Resources, Inc., Sr. Unsec. Gtd. Sub. Notes, 5.50%, 05/01/2022 | 15,000 | 11,100 | ||||||
| ||||||||
EP Energy LLC/Everest Acquisition Finance, Inc., Sr. Sec. Gtd. First Lien Notes, 8.00%, 11/29/2024(d) | 29,000 | 20,590 | ||||||
| ||||||||
Gulfport Energy Corp., Sr. Unsec. Gtd. Global Notes, 6.00%, 10/15/2024 | 63,000 | 57,330 | ||||||
| ||||||||
Jagged Peak Energy LLC, Sr. Unsec. Gtd. Notes, 5.88%, 05/01/2026(d) | 34,000 | 34,510 | ||||||
| ||||||||
Oasis Petroleum, Inc., Sr. Unsec. Gtd. Global Notes, 6.88%, 01/15/2023 | 44,000 | 43,835 | ||||||
| ||||||||
Parsley Energy, LLC/Parsley Finance Corp., Sr. Unsc. Gtd. Notes, 5.63%, 10/15/2027(d) | 15,000 | 14,925 | ||||||
| ||||||||
Sr. Unsec. Gtd. Notes, 6.25%, 06/01/2024(d) | 31,000 | 31,852 | ||||||
| ||||||||
QEP Resources, Inc., Sr. Unsec. Global Notes, 5.25%, 05/01/2023 | 6,000 | 5,805 | ||||||
| ||||||||
5.63%, 03/01/2026 | 7,000 | 6,598 | ||||||
| ||||||||
Sr. Unsec. Notes, 6.88%, 03/01/2021 | 33,000 | 34,279 | ||||||
| ||||||||
Range Resources Corp., Sr. Unsec. Gtd. Global Notes, 5.88%, 07/01/2022 | 33,000 | 33,495 | ||||||
| ||||||||
4.88%, 05/15/2025 | 18,000 | 16,577 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Strategic Real Return Fund
Principal Amount | Value | |||||||
Oil & Gas Exploration & Production-(continued) |
| |||||||
SM Energy Co., | ||||||||
Sr. Unsec. Global Notes, 6.13%, 11/15/2022 | $ | 43,000 | $ | 43,000 | ||||
| ||||||||
6.75%, 09/15/2026 | 25,000 | 24,063 | ||||||
| ||||||||
6.63%, 01/15/2027 | 4,000 | 3,830 | ||||||
| ||||||||
Southwestern Energy Co., | ||||||||
Sr. Unsec. Gtd. Global Notes, | ||||||||
7.50%, 04/01/2026 | 14,000 | 14,630 | ||||||
| ||||||||
7.75%, 10/01/2027 | 50,000 | 52,187 | ||||||
| ||||||||
WildHorse Resource Development Corp., | ||||||||
Sr. Unsec. Gtd. Global Notes, 6.88%, 02/01/2025 | 41,000 | 41,769 | ||||||
| ||||||||
WPX Energy, Inc., Sr. Unsec. Notes, 5.25%, 09/15/2024 | 66,000 | 66,082 | ||||||
| ||||||||
727,132 | ||||||||
| ||||||||
Oil & Gas Refining & Marketing-0.07% |
| |||||||
Parkland Fuel Corp. (Canada), Sr. Unsec. Notes, 6.00%, 04/01/2026(d) | 16,000 | 15,800 | ||||||
| ||||||||
Sunoco L.P./Sunoco Finance Corp., Sr. Unsec. Gtd. Global Notes, 4.88%, 01/15/2023 | 14,000 | 14,210 | ||||||
| ||||||||
30,010 | ||||||||
| ||||||||
Oil & Gas Storage & Transportation-0.52% |
| |||||||
Andeavor Logistics LP/Tesoro Logistics Finance Corp., Sr. Unsec. Gtd. Global Notes, 6.38%, 05/01/2024 | 15,000 | 15,769 | ||||||
| ||||||||
Antero Midstream Partners L.P./Antero Midstream Finance Corp., Sr. Unsec. Gtd. Global Notes, 5.38%, 09/15/2024 | 56,000 | 56,280 | ||||||
| ||||||||
Energy Transfer Equity, L.P., Sr. Sec. First Lien Notes, 5.88%, 01/15/2024 | 67,000 | 72,025 | ||||||
| ||||||||
Energy Transfer Partners, L.P., Series A, Jr. Unsec. Sub. Global Rate Notes, 6.25%(g) | 17,000 | 15,495 | ||||||
| ||||||||
SemGroup Corp., Sr. Unsec. Gtd. Global Notes, 6.38%, 03/15/2025 | 25,000 | 23,688 | ||||||
| ||||||||
Targa Resources Partners L.P./Targa Resources Partners Finance Corp., Sr. Unsec. Gtd. Global Bonds, 5.25%, 05/01/2023 | 17,000 | 17,276 | ||||||
| ||||||||
5.13%, 02/01/2025 | 18,000 | 18,180 | ||||||
| ||||||||
Sr. Unsec. Gtd. Notes, 5.88%, 04/15/2026(d) | 11,000 | 11,495 | ||||||
| ||||||||
Williams Cos., Inc. (The), Sr. Unsec. Notes, 7.88%, 09/01/2021 | 10,000 | 10,996 | ||||||
| ||||||||
241,204 | ||||||||
| ||||||||
Other Diversified Financial Services-0.20% |
| |||||||
Lions Gate Capital Holdings LLC, Sr. Unsec. Gtd. Notes, 6.38%, 02/01/2024(d) | 44,000 | 44,893 | ||||||
| ||||||||
LPL Holdings, Inc., Sr. Unsec. Gtd. Notes, 5.75%, 09/15/2025(d) | 15,000 | 15,206 | ||||||
| ||||||||
Tempo Acquisition LLC/Tempo Acquisition Finance Corp., Sr. Unsec. Notes, 6.75%, 06/01/2025(d) | 28,000 | 28,420 | ||||||
|
Principal Amount | Value | |||||||
Other Diversified Financial Services-(continued) |
| |||||||
VFH Parent LLC/OrchestraCo-Issuer, Inc., Sec. Gtd. Second Lien Notes, 6.75%, 06/15/2022(d) | $ | 5,000 | $ | 5,142 | ||||
| ||||||||
93,661 | ||||||||
| ||||||||
Packaged Foods & Meats-0.17% |
| |||||||
B&G Foods, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 04/01/2025 | 9,000 | 8,645 | ||||||
| ||||||||
JBS USA Lux S.A./JBS USA Finance Inc., Sr. Unsec. Gtd. Notes, 5.75%, 06/15/2025(d) | 48,000 | 48,866 | ||||||
| ||||||||
TreeHouse Foods, Inc., Sr. Unsec. Gtd. Notes, 6.00%, 02/15/2024(d) | 18,000 | 18,608 | ||||||
| ||||||||
76,119 | ||||||||
| ||||||||
Paper Packaging-0.03% |
| |||||||
Plastipak Holdings, Inc., Sr. Unsec. Notes, 6.25%, 10/15/2025(d) | 17,000 | 15,640 | ||||||
| ||||||||
Paper Products-0.15% |
| |||||||
Mercer International, Inc. (Canada), | ||||||||
Sr. Unsec. Global Notes, | ||||||||
7.75%, 12/01/2022 | 2,000 | 2,084 | ||||||
| ||||||||
6.50%, 02/01/2024 | 25,000 | 25,625 | ||||||
| ||||||||
5.50%, 01/15/2026 | 6,000 | 5,760 | ||||||
| ||||||||
Schweitzer-Mauduit International, Inc., Sr. Unsec. Gtd. Notes, 6.88%, 10/01/2026(d) | 37,000 | 36,445 | ||||||
| ||||||||
69,914 | ||||||||
| ||||||||
Pharmaceuticals-0.31% |
| |||||||
Bausch Health Cos. Inc., | ||||||||
Sr. Sec. Gtd. First Lien Notes, 5.50%, 11/01/2025(d) | 11,000 | 11,137 | ||||||
| ||||||||
Sr. Sec. Notes, 5.75%, 08/15/2027(d) | 9,000 | 9,101 | ||||||
| ||||||||
Sr. Unsec. Gtd. Notes, 5.88%, 05/15/2023(d) | 5,000 | 4,994 | ||||||
| ||||||||
9.00%, 12/15/2025(d) | 54,000 | 58,101 | ||||||
| ||||||||
9.25%, 04/01/2026(d) | 25,000 | 27,000 | ||||||
| ||||||||
HLF Financing S.a.r.l. LLC/Herbalife International, Inc., Sr. Unsec. Gtd. Notes, 7.25%, 08/15/2026(d) | 19,000 | 19,405 | ||||||
| ||||||||
Teva Pharmaceutical Finance IV, B.V. (Israel), Sr. Unsec. Gtd. Global Notes, 3.65%, 11/10/2021 | 15,000 | 14,634 | ||||||
| ||||||||
144,372 | ||||||||
| ||||||||
Publishing-0.10% |
| |||||||
Meredith Corp., Sr. Unsec. Gtd. Global Notes, 6.88%, 02/01/2026 | 43,000 | 44,625 | ||||||
| ||||||||
Railroads-0.10% |
| |||||||
Kenan Advantage Group, Inc. (The), Sr. Unsec. Notes, 7.88%, 07/31/2023(d) | 48,000 | 46,950 | ||||||
| ||||||||
Regional Banks-0.09% |
| |||||||
CIT Group, Inc., Sr. Unsec. Global Notes, 5.00%, 08/15/2022 | 42,000 | 43,470 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Strategic Real Return Fund
Principal Amount | Value | |||||||
Restaurants-0.21% | ||||||||
1011778 BC ULC/ New Red Finance, Inc. (Canada), Sec. Gtd. Second Lien Notes, 5.00%, 10/15/2025(d) | $ | 47,000 | $ | 45,696 | ||||
| ||||||||
Aramark Services, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 04/01/2025(d) | 24,000 | 24,480 | ||||||
| ||||||||
IRB Holding Corp., Sr. Unsec. Gtd. Notes, 6.75%, 02/15/2026(d) | 22,000 | 20,845 | ||||||
| ||||||||
KFC Holding Co./Pizza Hut Holdings LLC/ Taco Bell of America LLC, Sr. Unsec. Gtd. Notes, 4.75%, 06/01/2027(d) | 7,000 | 6,910 | ||||||
| ||||||||
97,931 | ||||||||
| ||||||||
Security & Alarm Services-0.03% |
| |||||||
Brink’s Co. (The), Sr. Unsec. Gtd.Notes, 4.63%, 10/15/2027(d) | 15,000 | 14,325 | ||||||
| ||||||||
Semiconductors-0.44% |
| |||||||
NXP B.V./NXP Funding LLC (Netherlands), Sr. Unsec. Gtd.Notes, 4.63%, 06/01/2023(d) | 200,000 | 204,366 | ||||||
| ||||||||
Specialized Consumer Services-0.07% |
| |||||||
ServiceMaster Co., LLC (The), Sr. Unsec. Gtd. Notes, 5.13%, 11/15/2024(d) | 18,000 | 18,135 | ||||||
| ||||||||
Sr. Unsec. Notes, 7.45%, 08/15/2027 | 15,000 | 15,600 | ||||||
| ||||||||
33,735 | ||||||||
| ||||||||
Specialized REITs-0.36% |
| |||||||
Equinix, Inc., Sr. Unsec. Notes, 5.88%, 01/15/2026 | 44,000 | 46,200 | ||||||
| ||||||||
GLP Capital L.P./GLP Financing II, Inc., Sr. Unsec. Gtd. Notes, 5.38%, 04/15/2026 | 25,000 | 25,892 | ||||||
| ||||||||
Iron Mountain US Holdings, Inc., Sr. Unsec. Gtd. Notes, 5.38%, 06/01/2026(d) | 34,000 | 33,150 | ||||||
| ||||||||
Iron Mountain, Inc., Sr. Unsec. Gtd. Notes, 6.00%, 08/15/2023 | 12,000 | 12,330 | ||||||
| ||||||||
Sr. Unsec. Sub.Gtd. Global Notes, 5.75%, 08/15/2024 | 6,000 | 6,030 | ||||||
| ||||||||
Sr. Unsec. Sub.Gtd. Notes, 5.25%, 03/15/2028(d) | 12,000 | 11,550 | ||||||
| ||||||||
Rayonier Am Products, Inc., Sr. Unsec. Gtd. Notes, 5.50%, 06/01/2024(d) | 33,000 | 30,709 | ||||||
| ||||||||
165,861 | ||||||||
| ||||||||
Specialty Chemicals-0.24% |
| |||||||
Ashland LLC, Sr. Unsec. Gtd. Global Notes, 4.75%, 08/15/2022 | 16,000 | 16,500 | ||||||
| ||||||||
GCP Applied Technologies, Inc., Sr. Unsec. Gtd. Notes, 5.50%, 04/15/2026(d) | 31,000 | 31,387 | ||||||
| ||||||||
Platform Specialty Products Corp., Sr. Unsec. Gtd. Notes, 5.88%, 12/01/2025(d) | 26,000 | 26,439 | ||||||
| ||||||||
PolyOne Corp., Sr. Unsec. Global Notes, 5.25%, 03/15/2023 | 22,000 | 22,605 | ||||||
|
Principal Amount | Value | |||||||
Specialty Chemicals-(continued) | ||||||||
PQ Corp., Sr. Sec. Gtd. First Lien Notes, 6.75%, 11/15/2022(d) | $ | 11,000 | $ | 11,478 | ||||
| ||||||||
108,409 | ||||||||
| ||||||||
Steel-0.34% |
| |||||||
ArcelorMittal (Luxembourg), Sr. Unsec. Global Notes, 7.00%, 10/15/2039 | 16,000 | 17,590 | ||||||
| ||||||||
Cleveland-Cliffs, Inc., Sr. Unsec. Gtd. Global Notes, 5.75%, 03/01/2025 | 59,000 | 57,820 | ||||||
| ||||||||
United States Steel Corp., Sr. Unsec. Global Notes, 6.88%, 08/15/2025 | 82,000 | 81,180 | ||||||
| ||||||||
156,590 | ||||||||
| ||||||||
Technology Distributors-0.03% |
| |||||||
CDW LLC/CDW Finance Corp., Sr. Unsec. Gtd. Notes, 5.00%, 09/01/2025 | 14,000 | 14,210 | ||||||
| ||||||||
Technology Hardware, Storage & Peripherals-0.10% |
| |||||||
Dell International LLC/EMC Corp., Sr. Unsec. Gtd. Notes, 7.13%, 06/15/2024(d) | 43,000 | 45,631 | ||||||
| ||||||||
Textiles-0.32% |
| |||||||
Eagle Intermediate Global Holding B.V./Ruyi US Finance LLC (China), Sr. Sec. Gtd. First Lien Bonds, 7.50%, 05/01/2025(d) | 150,000 | 146,138 | ||||||
| ||||||||
Trading Companies & Distributors-0.31% |
| |||||||
BMC East, LLC, Sr. Sec. Gtd. First Lien Notes, 5.50%, 10/01/2024(d) | 27,000 | 25,886 | ||||||
| ||||||||
H&E Equipment Services, Inc., Sr. Unsec. Gtd. Global Notes, 5.63%, 09/01/2025 | 31,000 | 30,806 | ||||||
| ||||||||
Herc Rentals, Inc., Sec. Gtd. Second Lien Notes, 7.75%, 06/01/2024(d) | 24,000 | 25,717 | ||||||
| ||||||||
United Rentals North America, Inc., Sr. Unsec. Gtd. Global Notes, 5.50%, 07/15/2025 | 48,000 | 49,200 | ||||||
| ||||||||
6.50%, 12/15/2026 | 11,000 | 11,509 | ||||||
| ||||||||
143,118 | ||||||||
| ||||||||
Trucking-0.05% |
| |||||||
Avis Budget Car Rental LLC/Avis Budget Finance, Inc., Sr. Unsec. Gtd. Global Notes, 5.50%, 04/01/2023 | 15,000 | 15,225 | ||||||
| ||||||||
Sr. Unsec. Gtd. Notes, 5.25%, 03/15/2025(d) | 8,000 | 7,630 | ||||||
| ||||||||
22,855 | ||||||||
| ||||||||
Wireless Telecommunication Services-0.61% |
| |||||||
Sprint Capital Corp., Unsec. Gtd. Global Notes, 8.75%, 03/15/2032 | 23,000 | 24,986 | ||||||
| ||||||||
Sprint Corp., Sr. Unsec. Gtd. Global Notes, 7.25%, 09/15/2021 | 63,000 | 66,701 | ||||||
| ||||||||
7.88%, 09/15/2023 | 84,000 | 89,985 | ||||||
| ||||||||
7.63%, 02/15/2025 | 14,000 | 14,700 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 Invesco Strategic Real Return Fund
Principal Amount | Value | |||||||
Wireless Telecommunication Services-(continued) |
| |||||||
T-Mobile USA, Inc., Sr. Unsec. Gtd. Global Bonds, 6.50%, 01/15/2026 | $ | 78,000 | $ | 83,460 | ||||
| ||||||||
279,832 | ||||||||
| ||||||||
Total U.S. Dollar Denominated Bonds & Notes (Cost $9,651,112) | 9,688,857 | |||||||
| ||||||||
Shares
| ||||||||
Preferred Stocks-1.56% | ||||||||
Asset Management & Custody Banks-0.11% | ||||||||
AMG Capital Trust II, $2.58 Conv. Pfd. | 1,000 | 51,119 | ||||||
| ||||||||
Diversified Banks-0.65% | ||||||||
Bank of America Corp., Series L, $72.50 Conv. Pfd. | 110 | 142,560 | ||||||
| ||||||||
Wells Fargo & Co., Class A, Series L, $75.00 Conv. Pfd. | 120 | 153,960 | ||||||
| ||||||||
296,520 | ||||||||
| ||||||||
Health Care Equipment-0.13% | ||||||||
Becton, Dickinson and Co., Series A, $3.06 Conv. Pfd.Series A | 1,000 | 61,710 | ||||||
| ||||||||
Industrial Machinery-0.12% | ||||||||
Colfax Corp., $5.75 Conv. Pfd. | 250 | 30,565 | ||||||
| ||||||||
Fortive Corp., Series A, $50.00 Conv. Pfd. | 25 | 26,131 | ||||||
| ||||||||
56,696 | ||||||||
| ||||||||
Multi-line Insurance-0.12% | ||||||||
Assurant, Inc., Series D, $6.50 Conv. Pfd. | 500 | 54,520 | ||||||
| ||||||||
Multi-Utilities-0.20% | ||||||||
CenterPoint Energy, Inc., Series B, $3.50 Conv. Pfd. | 1,000 | 52,260 | ||||||
|
Abbreviations:
Conv. | - Convertible | |
Deb. | - Debentures | |
Gtd. | - Guaranteed | |
Jr. | - Junior | |
LIBOR | - London Interbank Offered Rate | |
Pfd. | - Preferred | |
PIK | -Pay-in-Kind | |
REIT | - Real Estate Investment Trust | |
Sec. | - Secured | |
Sr. | - Senior | |
Sub. | - Subordinated | |
Unsec. | - Unsecured | |
Unsub. | - Unsubordinated | |
USD | - U.S. Dollar |
Shares | Value | |||||||
Multi-Utilities-(continued) | ||||||||
Sempra Energy, Series A, $6.00 Conv. Pfd.Series A | 400 | $ | 41,488 | |||||
| ||||||||
93,748 | ||||||||
| ||||||||
Oil & Gas Storage & Transportation-0.06% | ||||||||
El Paso Energy Capital Trust I, $2.38 Conv. Pfd. | 500 | 25,120 | ||||||
| ||||||||
Specialized REITs-0.06% | ||||||||
Crown Castle International Corp., Series A, $68.75 Conv. Pfd. | 25 | 27,873 | ||||||
| ||||||||
Specialty Stores-0.11% | ||||||||
Bunge Ltd., $4.88 Conv. Pfd. | 525 | 51,056 | ||||||
| ||||||||
Total Preferred Stocks (Cost $696,423) | 718,362 | |||||||
| ||||||||
Money Market Funds-0.27% | ||||||||
Invesco Government & Agency Portfolio-Institutional Class, 2.30%(i) | 43,616 | 43,616 | ||||||
| ||||||||
Invesco Liquid Assets Portfolio-Institutional Class, 2.51%(i) | 31,145 | 31,154 | ||||||
| ||||||||
Invesco Treasury Portfolio-Institutional Class, 2.29%(i) | 49,846 | 49,847 | ||||||
| ||||||||
Total Money Market Funds (Cost $124,617) |
| 124,617 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES-99.85% (Cost $46,326,821) | 45,894,623 | |||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES-0.15% | 66,766 | |||||||
| ||||||||
NET ASSETS-100.00% | $ | 45,961,389 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 Invesco Strategic Real Return 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) | Principal amount of security and interest payments are adjusted for inflation. See Note 1I. |
(c) | Invesco Floating Rate Fund and the Fund are affiliated by either having the same investment adviser or an investment adviser under common control with the Fund’s investment adviser. The value of this security as of February 28, 2019 represented 31.45% of the Fund’s Net Assets. See Note 4. |
(d) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). 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 28, 2019 was $4,556,592, which represented 9.91% of the Fund’s Net Assets. |
(e) | Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put. |
(f) | Perpetual bond with no specified maturity date. |
(g) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2019. |
(h) | All or a portion of this security isPay-in-Kind.Pay-in-Kind securities pay interest income in the form of securities. |
(i) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of February 28, 2019. |
Portfolio Composition
By security type, based on Net Assets
as of February 28, 2019
U.S. Treasury Securities | 45.49% | |||
| ||||
Common Stocks & Other Equity Interests | 31.45 | |||
| ||||
U.S. Dollar Denominated Bonds & Notes | 21.08 | |||
| ||||
Preferred Stocks | 1.56 | |||
| ||||
Money Market Funds Plus Other Assets Less Liabilities | 0.42 | |||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 Invesco Strategic Real Return Fund
Statement of Assets and Liabilities
February 28, 2019
(Unaudited)
Assets: |
| |||
Investments in securities, at value | $ | 31,315,656 | ||
| ||||
Investments in affiliates, at value | 14,578,967 | |||
| ||||
Receivable for: | ||||
Investments sold | 128,975 | |||
| ||||
Fund shares sold | 45,676 | |||
| ||||
Dividends | 5,396 | |||
| ||||
Interest | 186,097 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 8,656 | |||
| ||||
Other assets | 19,845 | |||
| ||||
Total assets | 46,289,268 | |||
| ||||
Liabilities: |
| |||
Payable for: | ||||
Investments purchased | 78,632 | |||
| ||||
Fund shares reacquired | 140,013 | |||
| ||||
Accrued fees to affiliates | 21,781 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 2,994 | |||
| ||||
Accrued other operating expenses | 75,803 | |||
| ||||
Trustee deferred compensation and retirement plans | 8,656 | |||
| ||||
Total liabilities | 327,879 | |||
| ||||
Net assets applicable to shares outstanding | $ | 45,961,389 | ||
| ||||
Net assets consist of: |
| |||
Shares of beneficial interest | $ | 47,619,745 | ||
| ||||
Distributable earnings | (1,658,356 | ) | ||
| ||||
$ | 45,961,389 | |||
| ||||
Net Assets: |
| |||
Class A | $ | 24,024,974 | ||
| ||||
Class C | $ | 1,385,426 | ||
| ||||
Class R | $ | 430,881 | ||
| ||||
Class Y | $ | 19,702,587 | ||
| ||||
Class R5 | $ | 9,409 | ||
| ||||
Class R6 | $ | 408,112 | ||
|
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 2,556,877 | |||
| ||||
Class C | 147,546 | |||
| ||||
Class R | 45,854 | |||
| ||||
Class Y | 2,096,396 | |||
| ||||
Class R5 | 1,001 | |||
| ||||
Class R6 | 43,408 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 9.40 | ||
| ||||
Maximum offering price per share | ||||
(Net asset value of $9.40 ÷ 97.50%) | $ | 9.64 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 9.39 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 9.40 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 9.40 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 9.40 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 9.40 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 Invesco Strategic Real Return Fund
Statement of Operations
For the six months ended February 28, 2019
(Unaudited)
Investment income: |
| |||
Interest | $ | 328,125 | ||
| ||||
Dividends | 27,505 | |||
| ||||
Dividends from affiliates | 346,283 | |||
| ||||
Treasury Inflation-Protected Securities inflation adjustments | (59,486 | ) | ||
| ||||
Total investment income | 642,427 | |||
| ||||
Expenses: |
| |||
Advisory fees | 87,944 | |||
| ||||
Administrative services fees | 17,773 | |||
| ||||
Custodian fees | 761 | |||
| ||||
Distribution fees: | ||||
Class A | 28,323 | |||
| ||||
Class C | 8,644 | |||
| ||||
Class R | 736 | |||
| ||||
Transfer agent fees – A, C, R and Y | 23,594 | |||
| ||||
Transfer agent fees – R5 | 3 | |||
| ||||
Transfer agent fees – R6 | 130 | |||
| ||||
Trustees’ and officers’ fees and benefits | 8,997 | |||
| ||||
Registration and filing fees | 49,193 | |||
| ||||
Reports to shareholders | 9,113 | |||
| ||||
Professional services fees | 25,001 | |||
| ||||
Other | 9,983 | |||
| ||||
Total expenses | 270,195 | |||
| ||||
Less: Fees waived, expenses reimbursed and expense offset arrangement(s) | (155,526 | ) | ||
| ||||
Net expenses | 114,669 | |||
| ||||
Net investment income | 527,758 | |||
| ||||
Realized and unrealized gain (loss) from: |
| |||
Net realized gain (loss) from Investment securities | (267,751 | ) | ||
| ||||
Change in net unrealized appreciation (depreciation) of Investment securities | (32,342 | ) | ||
| ||||
Net realized and unrealized gain (loss) | (300,093 | ) | ||
| ||||
Net increase in net assets resulting from operations | $ | 227,665 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 Invesco Strategic Real Return Fund
Statement of Changes in Net Assets
For the six months ended February 28, 2019 and the year ended August 31, 2018
(Unaudited)
February 28, 2019 | August 31, 2018 | |||||||
| ||||||||
Operations: |
| |||||||
Net investment income | $ | 527,758 | $ | 1,218,560 | ||||
| ||||||||
Net realized gain (loss) | (267,751 | ) | 2,451 | |||||
| ||||||||
Change in net unrealized appreciation (depreciation) | (32,342 | ) | (457,754 | ) | ||||
| ||||||||
Net increase in net assets resulting from operations | 227,665 | 763,257 | ||||||
| ||||||||
Distributions to shareholders from distributable earnings(1): | ||||||||
Class A | (506,031 | ) | (712,713 | ) | ||||
| ||||||||
Class C | (32,178 | ) | (52,782 | ) | ||||
| ||||||||
Class R | (6,126 | ) | (6,588 | ) | ||||
| ||||||||
Class Y | (444,818 | ) | (529,747 | ) | ||||
| ||||||||
Class R5 | (218 | ) | (412 | ) | ||||
| ||||||||
Class R6 | (8,230 | ) | (13,255 | ) | ||||
| ||||||||
Total distributions to shareholders from distributable earnings | (997,601 | ) | (1,315,497 | ) | ||||
| ||||||||
Share transactions-net: | ||||||||
Class A | 3,276,306 | 6,100,632 | ||||||
| ||||||||
Class C | (347,245 | ) | 259,600 | |||||
| ||||||||
Class R | 213,999 | 71,826 | ||||||
| ||||||||
Class Y | 1,797,388 | 8,210,353 | ||||||
| ||||||||
Class R6 | 68,662 | 78,611 | ||||||
| ||||||||
Net increase in net assets resulting from share transactions | 5,009,110 | 14,721,022 | ||||||
| ||||||||
Net increase in net assets | 4,239,174 | 14,168,782 | ||||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 41,722,215 | 27,553,433 | ||||||
| ||||||||
End of period | $ | 45,961,389 | $ | 41,722,215 | ||||
|
(1) | The Securities and Exchange Commission eliminated the requirement to disclose distribution components separately, except for tax return of capital. For the year ended August 31, 2018, distributions to shareholders from distributable earnings consisted of distributions from net investment income. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
17 Invesco Strategic Real Return Fund
February 28, 2019
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Strategic Real Return 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 anopen-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to seek to mitigate the effects of unanticipated inflation and to provide current income.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with afront-end sales charge unless certain waiver criteria are met. 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, Class R5 and Class R6 shares are sold at net asset value.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946,Financial Services - Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations– Securities, including restricted securities, are valued according to the following policy. |
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such asinstitution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in theover-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments inopen-end andclosed-end registered investment companies that do not trade on an exchange are valued at theend-of-day net asset value per share. Investments inopen-end andclosed-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) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
18 Invesco Strategic Real Return Fund
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 (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities.Pay-in-kind interest income andnon-cash dividend income received in the form of securitiesin-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on theex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
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 net investment income, if any, are declared and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on theex-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 of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets.Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
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 theperiod-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 the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Treasury Inflation-Protected Securities – The Fund may invest in Treasury Inflation-Protected Securities (“TIPS”). TIPS are fixed income securities whose principal value is periodically adjusted to the rate of inflation. The principal value of TIPS will be adjusted upward or downward, and any increase or decrease in the principal amount of TIPS will be shown asTreasury Inflation - Protected Securities inflation adjustments in the Statement of Operations, even though investors do not receive their principal until maturity. |
19 Invesco Strategic Real Return 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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
| ||||
First $1 billion | 0.40% | |||
| ||||
Next $2.5 billion | 0.35% | |||
| ||||
Over $3.5 billion | 0.33% | |||
|
For the six months ended February 28, 2019, the effective advisory fees incurred by the Fund was 0.40%.
Under the terms of a mastersub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separatesub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “AffiliatedSub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such AffiliatedSub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such AffiliatedSub-Adviser(s).
The Adviser has contractually agreed, through at least December 31, 2019 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 (including prior fiscal year-ended Acquired Fund Fees and Expenses of 0.21% and excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 0.82%, 1.57%, 1.07%, 0.57%, 0.57% and 0.57%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary ornon-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Acquired Fund Fees and Expenses are not operating expenses of the Fund directly, but are fees and expenses, including management fees, of the investment companies in which the Fund invests. As a result, the total annual fund operating expenses after expense reimbursement may exceed the expense limits above. Unless Invesco continues the fee waiver agreement, it will terminate on December 31, 2019. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, 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, 2020, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives on the Fund’s investments in certain affiliated funds.
For the six months ended February 28, 2019, the Adviser waived advisory fees of $87,944 and reimbursed fund level expenses of $43,855 and reimbursed class level expenses of $12,190, $930, $158, $10,183, $3 and $130 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 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 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into asub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and 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 orsub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended February 28, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule12b-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, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 28, 2019, expenses incurred under the Plans are shown in the Statement of Operations asDistribution 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 28, 2019, IDI advised the Fund that IDI retained $2,690 infront-end sales commissions from the sale of Class A shares and $968 and $578 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.
20 Invesco Strategic Real Return 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 28, 2019. 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.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments in Securities | ||||||||||||||||
| ||||||||||||||||
U.S. Treasury Securities | $ | - | $20,908,144 | $- | $20,908,144 | |||||||||||
| ||||||||||||||||
Common Stocks & Other Equity Interests | 14,454,643 | - | - | 14,454,643 | ||||||||||||
| ||||||||||||||||
U.S. Dollar Denominated Bonds & Notes | 135,100 | 9,553,757 | - | 9,688,857 | ||||||||||||
| ||||||||||||||||
Preferred Stocks | 667,243 | 51,119 | - | 718,362 | ||||||||||||
| ||||||||||||||||
Money Market Funds | 124,617 | - | - | 124,617 | ||||||||||||
| ||||||||||||||||
Total Investments | $15,381,603 | $30,513,020 | $- | $45,894,623 | ||||||||||||
|
NOTE 4–Investments in Affiliates
The Fund’s Adviser and the adviser for Invesco Floating Rate Fund are subsidiaries of Invesco Ltd. and therefore, Invesco Floating Rate Fund is considered to be affiliated with the Fund. The following is a summary of the transactions in, and earnings from, investments in Invesco Floating Rate Fund for the six months ended February 28, 2019.
Value 08/31/18 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value 02/28/19 | Dividend Income | ||||||||
| ||||||||||||||
Invesco Floating Rate | $12,517,778 | $3,540,220 | $(1,400,000) | $(91,835) | $(111,813) | $14,454,350 | $344,454 | |||||||
|
NOTE 5–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended February 28, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $132.
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. Obligations under the deferred compensation plan represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any atperiod-end, are shown in the Statement of Assets and Liabilities under the payable captionAmount 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. The Fund may not purchase additional securities when any borrowings from banks exceed 5% of the Fund’s total assets.
21 Invesco Strategic Real Return 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 GAAP. 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 fiscalyear-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 carryforwards 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, 2018, as follows:
Capital Loss Carryforward* | ||||||||||||
| ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
| ||||||||||||
Not subject to expiration | $125,138 | $280,268 | $405,406 | |||||||||
|
* | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 28, 2019 was $5,340,294 and $2,792,384, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $5,062,841 and $2,716,437, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reportingperiod-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
| ||||
Aggregate unrealized appreciation of investments | $ | 328,671 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (1,031,418 | ) | ||
| ||||
Net unrealized (depreciation) of investments | $ | (702,747 | ) | |
| ||||
Cost of investments for tax purposes is $46,597,370. |
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended February 28, 2019(a) | Year ended August 31, 2018 | |||||||||||||||
|
|
|
| |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 655,814 | $ | 6,161,535 | 1,011,272 | $ | 9,721,532 | ||||||||||
| ||||||||||||||||
Class C | 40,989 | 386,011 | 96,900 | 929,965 | ||||||||||||
| ||||||||||||||||
Class R | 23,240 | 214,415 | 13,872 | 133,785 | ||||||||||||
| ||||||||||||||||
Class Y | 468,499 | 4,403,350 | 988,153 | 9,460,482 | ||||||||||||
| ||||||||||||||||
Class R6 | 8,589 | 79,865 | 22,219 | 215,133 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 35,229 | 329,061 | 42,051 | 403,563 | ||||||||||||
| ||||||||||||||||
Class C | 2,877 | 26,851 | 4,794 | 46,027 | ||||||||||||
| ||||||||||||||||
Class R | 636 | 5,932 | 648 | 6,225 | ||||||||||||
| ||||||||||||||||
Class Y | 27,913 | 260,718 | 21,198 | 203,084 | ||||||||||||
| ||||||||||||||||
Class R6 | 857 | 8,012 | 1,337 | 12,843 | ||||||||||||
|
22 Invesco Strategic Real Return Fund
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended February 28, 2019(a) | Year ended August 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (344,659 | ) | (3,214,290 | ) | (418,880 | ) | (4,024,463 | ) | ||||||||
| ||||||||||||||||
Class C | (81,535 | ) | (760,107 | ) | (74,472 | ) | (716,392 | ) | ||||||||
| ||||||||||||||||
Class R | (671 | ) | (6,348 | ) | (7,085 | ) | (68,184 | ) | ||||||||
| ||||||||||||||||
Class Y | (307,009 | ) | (2,866,680 | ) | (151,723 | ) | (1,453,213 | ) | ||||||||
| ||||||||||||||||
Class R6 | (2,059 | ) | (19,215 | ) | (15,403 | ) | (149,365 | ) | ||||||||
| ||||||||||||||||
Net increase in share activity | 528,710 | $ | 5,009,110 | 1,534,881 | $ | 14,721,022 | ||||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 48% 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, 31% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed(c) | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income to average net assets | Portfolio turnover (d) | |||||||||||||||||||||||||||||||||||||||||||||||||
Class A |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $ | 9.56 | $ | 0.11 | $ | (0.06 | ) | $ | 0.05 | $ | (0.21 | ) | $ | 9.40 | 0.52 | % | $ | 24,025 | 0.60 | %(e) | 1.31 | %(e) | 2.32 | %(e) | 13 | % | ||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 9.74 | 0.35 | (0.14 | ) | 0.21 | (0.39 | ) | 9.56 | 2.18 | 21,140 | 0.60 | 1.67 | 3.68 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 9.77 | 0.30 | 0.01 | 0.31 | (0.34 | ) | 9.74 | 3.27 | 15,358 | 0.59 | 1.81 | 3.11 | 32 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 9.62 | 0.30 | 0.14 | 0.44 | (0.29 | ) | 9.77 | 4.72 | 10,130 | 0.61 | 2.34 | 3.13 | 35 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 10.11 | 0.26 | (0.49 | ) | (0.23 | ) | (0.26 | ) | 9.62 | (2.26 | ) | 8,936 | 0.60 | 2.25 | 2.71 | 25 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14(f) | 10.00 | 0.14 | 0.10 | 0.24 | (0.13 | ) | 10.11 | 2.44 | 7,880 | 0.59 | (g) | 2.87 | (g) | 4.21 | (g) | 13 | ||||||||||||||||||||||||||||||||||||||||||||
Class C |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 9.55 | 0.07 | (0.06 | ) | 0.01 | (0.17 | ) | 9.39 | 0.14 | 1,385 | 1.35 | (e) | 2.06 | (e) | 1.57 | (e) | 13 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 9.74 | 0.28 | (0.15 | ) | 0.13 | (0.32 | ) | 9.55 | 1.31 | 1,770 | 1.35 | 2.42 | 2.93 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 9.77 | 0.23 | 0.01 | 0.24 | (0.27 | ) | 9.74 | 2.49 | 1,538 | 1.34 | 2.56 | 2.36 | 32 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 9.61 | 0.23 | 0.15 | 0.38 | (0.22 | ) | 9.77 | 4.04 | 549 | 1.36 | 3.09 | 2.38 | 35 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 10.10 | 0.19 | (0.49 | ) | (0.30 | ) | (0.19 | ) | 9.61 | (3.00 | ) | 459 | 1.35 | 3.00 | 1.96 | 25 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14(f) | 10.00 | 0.12 | 0.09 | 0.21 | (0.11 | ) | 10.10 | 2.14 | 54 | 1.34 | (g) | 3.62 | (g) | 3.46 | (g) | 13 | ||||||||||||||||||||||||||||||||||||||||||||
Class R |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 9.56 | 0.10 | (0.07 | ) | 0.03 | (0.19 | ) | 9.40 | 0.39 | 431 | 0.85 | (e) | 1.56 | (e) | 2.07 | (e) | 13 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 9.74 | 0.33 | (0.15 | ) | 0.18 | (0.36 | ) | 9.56 | 1.92 | 217 | 0.85 | 1.92 | 3.43 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 9.77 | 0.28 | 0.01 | 0.29 | (0.32 | ) | 9.74 | 3.00 | 148 | 0.84 | 2.06 | 2.86 | 32 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 9.62 | 0.28 | 0.14 | 0.42 | (0.27 | ) | 9.77 | 4.46 | 76 | 0.86 | 2.59 | 2.88 | 35 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 10.11 | 0.24 | (0.49 | ) | (0.25 | ) | (0.24 | ) | 9.62 | (2.51 | ) | 35 | 0.85 | 2.50 | 2.46 | 25 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14(f) | 10.00 | 0.14 | 0.10 | 0.24 | (0.13 | ) | 10.11 | 2.37 | 10 | 0.84 | (g) | 3.12 | (g) | 3.96 | (g) | 13 | ||||||||||||||||||||||||||||||||||||||||||||
Class Y |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 9.57 | 0.12 | (0.07 | ) | 0.05 | (0.22 | ) | 9.40 | 0.54 | 19,703 | 0.35 | (e) | 1.06 | (e) | 2.57 | (e) | 13 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 9.75 | 0.38 | (0.15 | ) | 0.23 | (0.41 | ) | 9.57 | 2.44 | 18,242 | 0.35 | 1.42 | 3.93 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 9.78 | 0.33 | 0.01 | 0.34 | (0.37 | ) | 9.75 | 3.52 | 10,228 | 0.34 | 1.56 | 3.36 | 32 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 9.62 | 0.32 | 0.15 | 0.47 | (0.31 | ) | 9.78 | 5.09 | 7,616 | 0.36 | 2.09 | 3.38 | 35 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 10.11 | 0.29 | (0.49 | ) | (0.20 | ) | (0.29 | ) | 9.62 | (2.02 | ) | 7,209 | 0.35 | 2.00 | 2.96 | 25 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14(f) | 10.00 | 0.15 | 0.10 | 0.25 | (0.14 | ) | 10.11 | 2.50 | 7,563 | 0.34 | (g) | 2.62 | (g) | 4.46 | (g) | 13 | ||||||||||||||||||||||||||||||||||||||||||||
Class R5 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | 9.57 | 0.12 | (0.07 | ) | 0.05 | (0.22 | ) | 9.40 | 0.54 | 9 | 0.35 | (e) | 1.02 | (e) | 2.57 | (e) | 13 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 9.75 | 0.38 | (0.15 | ) | 0.23 | (0.41 | ) | 9.57 | 2.43 | 10 | 0.35 | 1.35 | 3.93 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 9.78 | 0.33 | 0.01 | 0.34 | (0.37 | ) | 9.75 | 3.52 | 10 | 0.34 | 1.52 | 3.36 | 32 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 9.62 | 0.32 | 0.15 | 0.47 | (0.31 | ) | 9.78 | 5.09 | 10 | 0.35 | 2.14 | 3.39 | 35 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 10.11 | 0.29 | (0.49 | ) | (0.20 | ) | (0.29 | ) | 9.62 | (2.02 | ) | 10 | 0.35 | 2.07 | 2.96 | 25 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14(f) | 10.00 | 0.15 | 0.10 | 0.25 | (0.14 | ) | 10.11 | 2.50 | 10 | 0.34 | (g) | 2.68 | (g) | 4.46 | (g) | 13 |
23 Invesco Strategic Real Return Fund
Net asset value, beginning of period | Net investment income(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed (c) | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income to average net assets | Portfolio turnover (d) | |||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/28/19 | $ | 9.57 | $ | 0.12 | $ | (0.07 | ) | $ | 0.05 | $ | (0.22 | ) | $ | 9.40 | 0.54 | % | $ | 408 | 0.35 | %(e) | 1.02 | %(e) | 2.57 | %(e) | 13 | % | ||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 9.75 | 0.38 | (0.15 | ) | 0.23 | (0.41 | ) | 9.57 | 2.43 | 345 | 0.35 | 1.35 | 3.93 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 9.78 | 0.33 | 0.01 | 0.34 | (0.37 | ) | 9.75 | 3.52 | 272 | 0.34 | 1.52 | 3.36 | 32 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 9.62 | 0.32 | 0.15 | 0.47 | (0.31 | ) | 9.78 | 5.09 | 10 | 0.35 | 2.14 | 3.39 | 35 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 10.11 | 0.29 | (0.49 | ) | (0.20 | ) | (0.29 | ) | 9.62 | (2.02 | ) | 10 | 0.35 | 2.07 | 2.96 | 25 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/14(f) | 10.00 | 0.15 | 0.10 | 0.25 | (0.14 | ) | 10.11 | 2.50 | 10 | 0.34 | (g) | 2.68 | (g) | 4.46 | (g) | 13 |
(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) | In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the Fund invests. Because the underlying funds have varied expenses and fee levels and the Fund may own different proportions at different times, the amount of fees and expenses incurred indirectly by the Fund will vary. Estimated underlying fund expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the underlying funds and are deducted from the value of the funds the Fund invests in. The effect of the estimated underlying fund expenses that the Fund bears indirectly is included in the Fund’s total return. Estimated acquired fund fees from underlying funds were 0.21%, 0.21%, 0.22%, 0.23%, 0.22% and 0.21% for the six months ended February 28, 2019 and for the years ended August 31, 2018, 2017, 2016, 2015 and for the period April 30, 2014 (commencement date) through August 31, 2014, respectively. |
(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 $22,846, $1,743, $297, $19,085 , $9 and $356 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
(f) | Commencement date of April 30, 2014. |
(g) | Annualized. |
24 Invesco Strategic Real Return Fund
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service(12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2018 through February 28, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Beginning | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized | |||||||||
Ending Account Value (02/28/19)1 | Expenses | Ending Account Value (02/28/19) | Expenses Paid During Period2 | |||||||||
Class A | $1,000.00 | $1,005.20 | $2.98 | $1,021.82 | $3.01 | 0.60% | ||||||
Class C | 1,000.00 | 1,001.40 | 6.70 | 1,018.10 | 6.76 | 1.35 | ||||||
Class R | 1,000.00 | 1,003.90 | 4.22 | 1,020.58 | 4.26 | 0.85 | ||||||
Class Y | 1,000.00 | 1,005.40 | 1.74 | 1,023.06 | 1.76 | 0.35 | ||||||
Class R5 | 1,000.00 | 1,005.40 | 1.74 | 1,023.06 | 1.76 | 0.35 | ||||||
Class R6 | 1,000.00 | 1,005.40 | 1.74 | 1,023.06 | 1.76 | 0.35 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2018 through February 28, 2019, 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 181/365 to reflect the most recent fiscal half year. |
25 Invesco Strategic Real Return Fund
Explore High-Conviction Investing with Invesco
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Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
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∎ Fund reports and prospectuses
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Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on FormN-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s FormsN-Q (or any successor Form) on the SEC website at sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov. Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd. | ![]() |
SEC file numbers:811-09913 and333-36074 | Invesco Distributors, Inc. | SRR-SAR-1 | 04222019 | 0805 |
ITEM 2. | CODE OF ETHICS. |
Not required for a semi-annual report.
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable.
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
PricewaterhouseCoopers LLP informed the Trust that it has identified an issue related to its independence under Rule2-01(c)(1)(ii)(A) of RegulationS-X (referred to as the Loan Rule). The Loan Rule prohibits accounting firms, such as PricewaterhouseCoopers LLP, from being deemed independent if they have certain financial relationships with their audit clients or certain affiliates of those clients. The Trust is required under various securities laws to have its financial statements audited by an independent accounting firm.
The Loan Rule specifically provides that an accounting firm would not be independent if it or certain affiliates and covered persons receives a loan from a lender that is a record or beneficial owner of more than ten percent of an audit client’s equity securities (referred to as a “more than ten percent owner”). For purposes of the Loan Rule, audit clients include the Funds as well as all registered investment companies advised by the Adviser and its affiliates, including other subsidiaries of the Adviser’s parent company, Invesco Ltd. (collectively, the Invesco Fund Complex). PricewaterhouseCoopers LLP informed the Trust it and certain affiliates and covered persons have relationships with lenders who hold, as record owner, more than ten percent of the shares of certain funds within the Invesco Fund Complex, which may implicate the Loan Rule.
On June 20, 2016, the SEC Staff issued a“no-action” letter to another mutual fund complex (see Fidelity Management & Research Company et al.,No-Action Letter) related to the audit independence issue described above. In that letter, the SEC confirmed that it would not recommend enforcement action against a fund that relied on audit services performed by an audit firm that was not in compliance with the Loan Rule in certain specified circumstances. In connection with prior independence determinations, PricewaterhouseCoopers LLP communicated, as contemplated by theno-action letter, that it believes that it remains objective and impartial and that a reasonable investor possessing all the facts would conclude that PricewaterhouseCoopers LLP is able to exhibit the requisite objectivity and impartiality to report on the Funds’ financial statements as the independent registered public accounting firm. PricewaterhouseCoopers LLP also represented that it has complied with PCAOB Rule 3526(b)(1) and (2), which are conditions to the Funds relying on the no action letter, and affirmed that it is an independent accountant within the meaning of PCAOB Rule 3520. Therefore, the Adviser, the Funds and PricewaterhouseCoopers LLP concluded that PricewaterhouseCoopers LLP could continue as the Funds’ independent registered public accounting firm. The Invesco Fund Complex relied upon theno-action letter in reaching this conclusion.
If in the future the independence of PricewaterhouseCoopers LLP is called into question under the Loan Rule by circumstances that are not addressed in the SEC’sno-action letter, the Funds will need to take other action in order for the Funds’ filings with the SEC containing financial statements to be deemed compliant with applicable securities laws. Such additional actions could result in additional costs, impair the ability of the Funds to issue new shares or have other material adverse effects on the Funds. The SECno-action relief was initially set to expire 18 months from issuance but has been extended by the SEC without an expiration date,
except that theno-action letter will be withdrawn upon the effectiveness of any amendments to the Loan Rule designed to address the concerns expressed in the letter.
PWC advised the Registrant’s Audit Committee that PwC had identified one matter for consideration under the SEC’s auditor independence rules. PwC stated that a PwC Director held a financial interest in an investment company within the Invesco Fund Complex that was inconsistent with the requirements of Rule2-01(c)(1)(i)(A) of RegulationS-X. PwC advised the Audit Committee that it believes its objectivity and impartiality had not been adversely affected by this matter as they related to the audit of Registrant. In reaching this conclusion, PwC noted, among other things, the engagement team was not aware of the investment, the PwC Director was not in the chain of command of the audit or audit partners of Invesco, the services provided by the individual were not relied upon by the audit engagement team with respect to the audit of the Registrant and the investment was not material to the net worth of the individual or his immediate family members.
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 FORCLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 8. | PORTFOLIO MANAGERS OFCLOSED-END MANAGEMENT COMPANIES. |
Not applicable.
ITEM 9. | PURCHASES OF EQUITY SECURITIES BYCLOSED-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 April 15, 2019, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the PEO and PFO, to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule30a-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 April 15, 2019, the Registrant’s disclosure controls and procedures were reasonably designed to ensure: (1) that information required to be disclosed by the Registrant on FormN-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 Rule30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
ITEM 12. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FORCLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 13. | EXHIBITS. |
13(a) (1) | Not applicable. | |
13(a) (2) | Certifications of principal executive officer and principal financial officer as required by Rule30a-2(a) under the Investment Company Act of 1940. | |
13(a) (3) | Not applicable. | |
13(a) (4) | Not applicable. | |
13(b) | Certifications of principal executive officer and principal financial officer as required by Rule30a-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/ Sheri Morris | |
Sheri Morris | ||
Principal Executive Officer | ||
Date: | May 9, 2019 |
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Sheri Morris | |
Sheri Morris | ||
Principal Executive Officer | ||
Date: | May 9, 2019 | |
By: | /s/ Kelli Gallegos | |
Kelli Gallegos | ||
Principal Financial Officer | ||
Date: | May 9, 2019 |
EXHIBIT INDEX
13(a) (1) | Not applicable. | |
13(a) (2) | Certifications of principal executive officer and Principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. | |
13(a) (3) | Not applicable. | |
13(b) | Certifications of principal executive officer and Principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940. |