UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09913
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)
Glenn Brightman 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: 2/29/2024
ITEM 1. | REPORTS TO STOCKHOLDERS. |
(a) The Registrant’s semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:
Semiannual Report to Shareholders | February 29, 2024 |
Invesco American Franchise Fund
Nasdaq:
A: VAFAX ∎ C: VAFCX ∎ R: VAFRX ∎ Y: VAFIX ∎ R5: VAFNX ∎ R6: VAFFX
| ||
2 | Fund Performance | |
4 | Schedule of Investments | |
7 | Financial Statements | |
10 | Financial Highlights | |
11 | Notes to Financial Statements | |
17 | Fund Expenses | |
18 |
Beginning in July 2024, amendments adopted by the Securities and Exchange Commission will substantially impact the design, content, and delivery of shareholder reports. These newly designed shareholder reports will highlight key fund information in a clear and concise format and must be mailed to each shareholder that has not elected to receive the reports electronically. Other information, including financial statements, will no longer be included in the shareholder report but will be available at invesco.com/reports, delivered upon request, and filed on a semi-annual basis on Form N-CSR.
If you would like to receive shareholder reports and other communications electronically instead of by mail, you may make that request 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. If you do not make this request or enroll in e-delivery, you will receive future shareholder reports and other communications by mail.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is 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, 8/31/23 to 2/29/24, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 20.99 | % | ||
Class C Shares | 20.50 | |||
Class R Shares | 20.79 | |||
Class Y Shares | 21.12 | |||
Class R5 Shares | 21.17 | |||
Class R6 Shares | 21.16 | |||
S&P 500 Index▼ (Broad Market Index) | 13.93 | |||
Russell 1000 Growth Index▼ (Style-Specific Index) | 18.20 | |||
Lipper Large-Cap Growth Funds Index∎ (Peer Group Index) | 19.70 |
Source(s): ▼RIMES Technologies Corp.; ∎Lipper Inc. |
The S&P 500® Index is an unmanaged index considered representative of the US stock market. The Russell 1000® Growth Index is an unmanaged index considered representative of large-cap growth stocks. The Russell 1000 Growth Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. The Lipper Large-Cap Growth Funds Index is an unmanaged index considered representative of large-cap growth funds tracked by Lipper. The Fund is not managed to track the performance of any particular index, including the indexes 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 visiting invesco.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, visit blog.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 2/29/24, including maximum applicable sales charges |
| |||
Class A Shares |
| |||
Inception (6/23/05) | 10.49 | % | ||
10 Years | 12.00 | |||
5 Years | 14.68 | |||
1 Year | 41.56 | |||
Class C Shares | ||||
Inception (6/23/05) | 10.49 | % | ||
10 Years | 11.96 | |||
5 Years | 15.10 | |||
1 Year | 47.63 | |||
Class R Shares | ||||
Inception (5/23/11) | 12.58 | % | ||
10 Years | 12.35 | |||
5 Years | 15.68 | |||
1 Year | 49.38 | |||
Class Y Shares | ||||
Inception (6/23/05) | 11.09 | % | ||
10 Years | 12.91 | |||
5 Years | 16.26 | |||
1 Year | 50.19 | |||
Class R5 Shares | ||||
Inception (12/22/10) | 13.32 | % | ||
10 Years | 12.98 | |||
5 Years | 16.31 | |||
1 Year | 50.22 | |||
Class R6 Shares | ||||
Inception (9/24/12) | 14.73 | % | ||
10 Years | 13.07 | |||
5 Years | 16.39 | |||
1 Year | 50.33 |
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 those for Class A, Class C and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
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 a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 | Invesco American Franchise Fund |
February 29, 2024
(Unaudited)
Shares | Value | |||||||
| ||||||||
Common Stocks & Other Equity Interests–99.50% |
| |||||||
Advertising–0.85% | ||||||||
Trade Desk, Inc. (The), | 1,486,291 | $ | 126,973,840 | |||||
| ||||||||
Aerospace & Defense–1.56% |
| |||||||
Airbus SE (France) | 651,510 | 107,798,173 | ||||||
| ||||||||
TransDigm Group, Inc. | 106,529 | 125,463,464 | ||||||
| ||||||||
233,261,637 | ||||||||
| ||||||||
Application Software–4.61% |
| |||||||
Adobe, Inc.(b) | 468,370 | 262,418,344 | ||||||
| ||||||||
HubSpot, Inc.(b) | 307,239 | 190,122,565 | ||||||
| ||||||||
Workday, Inc., Class A(b) | 803,905 | 236,878,647 | ||||||
| ||||||||
689,419,556 | ||||||||
| ||||||||
Asset Management & Custody Banks–3.83% |
| |||||||
Blackstone, Inc., Class A | 1,323,948 | 169,227,033 | ||||||
| ||||||||
KKR & Co., Inc., Class A | 4,118,113 | 404,645,784 | ||||||
| ||||||||
573,872,817 | ||||||||
| ||||||||
Automotive Retail–1.00% |
| |||||||
O’Reilly Automotive, Inc.(b) | 137,624 | 149,655,090 | ||||||
| ||||||||
Biotechnology–1.00% |
| |||||||
Regeneron Pharmaceuticals, | 155,170 | 149,908,185 | ||||||
| ||||||||
Broadline Retail–8.30% |
| |||||||
Amazon.com, Inc.(b) | 6,460,506 | 1,141,959,040 | ||||||
| ||||||||
MercadoLibre, Inc. (Brazil)(b)(c) | 62,682 | 99,996,595 | ||||||
| ||||||||
1,241,955,635 | ||||||||
| ||||||||
Communications Equipment–1.01% |
| |||||||
Arista Networks, Inc.(b) | 543,086 | 150,728,088 | ||||||
| ||||||||
Construction Materials–0.81% |
| |||||||
Martin Marietta Materials, Inc. | 210,815 | 121,789,934 | ||||||
| ||||||||
Consumer Staples Merchandise Retail–0.50% |
| |||||||
Costco Wholesale Corp. | 101,525 | 75,523,432 | ||||||
| ||||||||
Diversified Support Services–0.61% |
| |||||||
Cintas Corp. | 145,464 | 91,440,125 | ||||||
| ||||||||
Electrical Components & Equipment–1.99% |
| |||||||
Eaton Corp. PLC | 483,693 | 139,787,277 | ||||||
| ||||||||
Vertiv Holdings Co., Class A | 2,329,503 | 157,520,993 | ||||||
| ||||||||
297,308,270 | ||||||||
| ||||||||
Environmental & Facilities Services–0.32% |
| |||||||
Republic Services, Inc. | 261,721 | 48,051,976 | ||||||
| ||||||||
Financial Exchanges & Data–2.22% |
| |||||||
MSCI, Inc. | 106,649 | 59,826,889 | ||||||
| ||||||||
S&P Global, Inc. | 634,083 | 271,628,476 | ||||||
| ||||||||
331,455,365 | ||||||||
| ||||||||
Food Distributors–0.59% |
| |||||||
US Foods Holding Corp.(b) | 1,749,796 | 88,872,139 | ||||||
| ||||||||
Health Care Distributors–0.47% |
| |||||||
McKesson Corp. | 134,104 | 69,923,167 | ||||||
|
Shares | Value | |||||||
| ||||||||
Health Care Equipment–2.78% |
| |||||||
IDEXX Laboratories, Inc.(b) | 196,581 | $ | 113,079,289 | |||||
| ||||||||
Intuitive Surgical, Inc.(b) | 785,065 | 302,721,064 | ||||||
| ||||||||
415,800,353 | ||||||||
| ||||||||
Health Care Technology–0.76% |
| |||||||
Veeva Systems, Inc., Class A(b) | 505,925 | 114,091,147 | ||||||
| ||||||||
Home Improvement Retail–1.33% |
| |||||||
Lowe’s Cos., Inc. | 827,243 | 199,092,573 | ||||||
| ||||||||
Hotels, Resorts & Cruise Lines–1.06% |
| |||||||
Booking Holdings, Inc.(b) | 45,642 | 158,324,339 | ||||||
| ||||||||
Industrial Machinery & Supplies & Components–0.84% |
| |||||||
Parker-Hannifin Corp. | 235,181 | 125,927,666 | ||||||
| ||||||||
Integrated Oil & Gas–1.08% |
| |||||||
Suncor Energy, Inc. (Canada)(c) | 4,722,956 | 162,280,768 | ||||||
| ||||||||
Interactive Home Entertainment–1.32% |
| |||||||
Nintendo Co. Ltd. (Japan) | 1,412,800 | 78,947,585 | ||||||
| ||||||||
Take-Two Interactive Software, | 806,798 | 118,542,830 | ||||||
| ||||||||
197,490,415 | ||||||||
| ||||||||
Interactive Media & Services–9.23% |
| |||||||
Alphabet, Inc., Class A(b) | 4,138,653 | 573,037,895 | ||||||
| ||||||||
Meta Platforms, Inc., Class A | 1,650,378 | 808,899,769 | ||||||
| ||||||||
1,381,937,664 | ||||||||
| ||||||||
Internet Services & Infrastructure–2.87% |
| |||||||
MongoDB, Inc.(b)(c) | 442,064 | 197,859,005 | ||||||
| ||||||||
Shopify, Inc., Class A (Canada)(b) | 1,335,626 | 102,001,758 | ||||||
| ||||||||
Snowflake, Inc., Class A(b) | 690,939 | 130,089,995 | ||||||
| ||||||||
429,950,758 | ||||||||
| ||||||||
Life Sciences Tools & Services–0.84% |
| |||||||
Danaher Corp. | 496,843 | 125,770,837 | ||||||
| ||||||||
Managed Health Care–0.70% |
| |||||||
UnitedHealth Group, Inc. | 211,328 | 104,311,501 | ||||||
| ||||||||
Movies & Entertainment–1.84% |
| |||||||
Netflix, Inc.(b) | 455,903 | 274,873,037 | ||||||
| ||||||||
Oil & Gas Equipment & Services–0.41% |
| |||||||
Schlumberger N.V. | 1,261,248 | 60,956,116 | ||||||
| ||||||||
Passenger Ground Transportation–1.54% |
| |||||||
Uber Technologies, Inc.(b) | 2,889,142 | 229,686,789 | ||||||
| ||||||||
Pharmaceuticals–3.74% |
| |||||||
Eli Lilly and Co. | 538,894 | 406,153,630 | ||||||
| ||||||||
Zoetis, Inc. | 776,838 | 154,070,280 | ||||||
| ||||||||
560,223,910 | ||||||||
| ||||||||
Semiconductor Materials & Equipment–0.79% |
| |||||||
Lam Research Corp. | 126,640 | 118,819,980 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 | Invesco American Franchise Fund |
Shares | Value | |||||||
| ||||||||
Semiconductors–14.82% |
| |||||||
Advanced Micro Devices, Inc.(b) | 1,764,722 | $ | 339,761,927 | |||||
| ||||||||
Broadcom, Inc. | 247,410 | 321,754,231 | ||||||
| ||||||||
Monolithic Power Systems, Inc. | 257,176 | 185,177,007 | ||||||
| ||||||||
NVIDIA Corp. | 1,733,930 | 1,371,746,701 | ||||||
| ||||||||
2,218,439,866 | ||||||||
| ||||||||
Soft Drinks & Non-alcoholic Beverages–1.08% |
| |||||||
Monster Beverage Corp.(b)(c) | 2,733,672 | 161,560,015 | ||||||
| ||||||||
Systems Software–12.63% | ||||||||
Microsoft Corp. | 3,670,826 | 1,518,400,467 | ||||||
| ||||||||
Palo Alto Networks, Inc.(b)(c) | 396,913 | 123,261,332 | ||||||
| ||||||||
ServiceNow, Inc.(b) | 322,895 | 249,061,829 | ||||||
| ||||||||
1,890,723,628 | ||||||||
| ||||||||
Technology Hardware, Storage & Peripherals–4.59% |
| |||||||
Apple, Inc. | 3,803,807 | 687,538,115 | ||||||
| ||||||||
Trading Companies & Distributors–1.37% |
| |||||||
Fastenal Co. | 1,017,738 | 74,305,051 | ||||||
| ||||||||
United Rentals, Inc. | 187,746 | 130,158,670 | ||||||
| ||||||||
204,463,721 | ||||||||
| ||||||||
Transaction & Payment Processing Services–4.21% |
| |||||||
Visa, Inc., Class A(c) | 2,226,778 | 629,376,534 | ||||||
| ||||||||
Total Common Stocks & Other Equity Interests |
| 14,891,778,988 | ||||||
| ||||||||
Money Market Funds–0.39% |
| |||||||
Invesco Government & Agency Portfolio, Institutional Class, 5.24%(d)(e) | 20,639,812 | 20,639,812 | ||||||
|
Shares | Value | |||||||
| ||||||||
Money Market Funds–(continued) |
| |||||||
Invesco Liquid Assets Portfolio, Institutional Class, 5.41%(d)(e) | 14,731,687 | $ | 14,739,053 | |||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 5.23%(d)(e) | 23,588,357 | 23,588,357 | ||||||
| ||||||||
Total Money Market Funds | 58,967,222 | |||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.89% |
| 14,950,746,210 | ||||||
| ||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds–4.34% | ||||||||
Invesco Private Government Fund, 5.29%(d)(e)(f) | 181,656,940 | 181,656,940 | ||||||
| ||||||||
Invesco Private Prime Fund, 5.49%(d)(e)(f) | 466,884,403 | 467,117,845 | ||||||
| ||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan |
| 648,774,785 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES–104.23% |
| 15,599,520,995 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES–(4.23)% |
| (633,579,054 | ) | |||||
| ||||||||
NET ASSETS–100.00% |
| $ | 14,965,941,941 | |||||
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at February 29, 2024. |
(d) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 29, 2024. |
Value August 31, | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized (Loss) | Value February 29, 2024 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ 16,193,539 | $ 270,637,305 | $ (266,191,032) | $ - | $ - | $ 20,639,812 | $ 711,225 | |||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 11,559,894 | 193,312,361 | (190,136,451) | 4,128 | (879) | 14,739,053 | 521,189 | |||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 18,506,902 | 309,299,777 | (304,218,322) | - | - | 23,588,357 | 807,179 | |||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | ||||||||||||||||||||||||||||
Invesco Private Government Fund | 203,220,752 | 574,963,379 | (596,527,191) | - | - | 181,656,940 | 4,815,498* | |||||||||||||||||||||
Invesco Private Prime Fund | 522,567,644 | 1,190,614,886 | (1,246,327,446) | (96,363) | 359,124 | 467,117,845 | 13,197,718* | |||||||||||||||||||||
Total | $772,048,731 | $2,538,827,708 | $(2,603,400,442) | $(92,235) | $358,245 | $707,742,007 | $ 20,052,809 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(e) | The rate shown is the 7-day SEC standardized yield as of February 29, 2024. |
(f) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco American Franchise Fund |
Portfolio Composition
By sector, based on Net Assets
as of February 29, 2024
Information Technology | 41.33% | |||
| ||||
Communication Services | 13.24 | |||
| ||||
Consumer Discretionary | 11.69 | |||
| ||||
Health Care | 10.29 | |||
| ||||
Financials | 10.25 | |||
| ||||
Industrials | 8.22 | |||
| ||||
Consumer Staples | 2.18 | |||
| ||||
Other Sectors, Each Less than 2% of Net Assets | 2.30 | |||
| ||||
Money Market Funds Plus Other Assets Less Liabilities | 0.50 | |||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco American Franchise Fund |
Statement of Assets and Liabilities
February 29, 2024
(Unaudited)
Assets: |
| |||
Investments in unaffiliated securities, at value | $ | 14,891,778,988 | ||
| ||||
Investments in affiliated money market funds, at value | 707,742,007 | |||
| ||||
Foreign currencies, at value (Cost $2,808) | 2,800 | |||
| ||||
Receivable for: |
| |||
Investments sold | 84,042,748 | |||
| ||||
Fund shares sold | 5,696,646 | |||
| ||||
Dividends | 9,864,701 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 1,781,006 | |||
| ||||
Other assets | 193,090 | |||
| ||||
Total assets | 15,701,101,986 | |||
| ||||
Liabilities: |
| |||
Payable for: |
| |||
Investments purchased | 68,942,783 | |||
| ||||
Fund shares reacquired | 9,193,687 | |||
| ||||
Collateral upon return of securities loaned | 648,843,656 | |||
| ||||
Accrued fees to affiliates | 5,780,717 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 6,463 | |||
| ||||
Accrued other operating expenses | 480,838 | |||
| ||||
Trustee deferred compensation and retirement plans | 1,911,901 | |||
| ||||
Total liabilities | 735,160,045 | |||
| ||||
Net assets applicable to shares outstanding | $ | 14,965,941,941 | ||
| ||||
Net assets consist of: |
| |||
Shares of beneficial interest | $ | 7,345,590,655 | ||
| ||||
Distributable earnings | 7,620,351,286 | |||
| ||||
$ | 14,965,941,941 | |||
|
Net Assets: |
| |||
Class A | $ | 14,095,317,129 | ||
| ||||
Class C | $ | 122,058,056 | ||
| ||||
Class R | $ | 87,484,363 | ||
| ||||
Class Y | $ | 507,598,855 | ||
| ||||
Class R5 | $ | 56,649,189 | ||
| ||||
Class R6 | $ | 96,834,349 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 553,288,954 | |||
| ||||
Class C | 5,933,242 | |||
| ||||
Class R | 3,627,907 | |||
| ||||
Class Y | 18,827,775 | |||
| ||||
Class R5 | 2,088,294 | |||
| ||||
Class R6 | 3,516,074 | |||
| ||||
Class A: |
| |||
Net asset value per share | $ | 25.48 | ||
| ||||
Maximum offering price per share | $ | 26.96 | ||
| ||||
Class C: |
| |||
Net asset value and offering price per share | $ | 20.57 | ||
| ||||
Class R: |
| |||
Net asset value and offering price per share | $ | 24.11 | ||
| ||||
Class Y: |
| |||
Net asset value and offering price per share | $ | 26.96 | ||
| ||||
Class R5: |
| |||
Net asset value and offering price per share | $ | 27.13 | ||
| ||||
Class R6: |
| |||
Net asset value and offering price per share | $ | 27.54 | ||
|
* | At February 29, 2024, securities with an aggregate value of $632,232,521 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco American Franchise Fund |
Statement of Operations
For the six months ended February 29, 2024
(Unaudited)
Investment income: |
| |||
Dividends (net of foreign withholding taxes of $281,524) | $ | 36,331,993 | ||
| ||||
Dividends from affiliated money market funds (includes net securities lending income of $493,420) | 2,533,013 | |||
| ||||
Total investment income | 38,865,006 | |||
| ||||
Expenses: |
| |||
Advisory fees | 37,084,582 | |||
| ||||
Administrative services fees | 873,353 | |||
| ||||
Custodian fees | 64,785 | |||
| ||||
Distribution fees: |
| |||
Class A | 15,306,570 | |||
| ||||
Class C | 532,771 | |||
| ||||
Class R | 181,965 | |||
| ||||
Transfer agent fees – A, C, R and Y | 7,553,148 | |||
| ||||
Transfer agent fees – R5 | 21,078 | |||
| ||||
Transfer agent fees – R6 | 12,285 | |||
| ||||
Trustees’ and officers’ fees and benefits | 73,964 | |||
| ||||
Registration and filing fees | 71,579 | |||
| ||||
Reports to shareholders | 1,026,390 | |||
| ||||
Professional services fees | 84,860 | |||
| ||||
Other | 111,709 | |||
| ||||
Total expenses | 62,999,039 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (146,387 | ) | ||
| ||||
Net expenses | 62,852,652 | |||
| ||||
Net investment income (loss) | (23,987,646 | ) | ||
| ||||
Realized and unrealized gain (loss) from: |
| |||
Net realized gain from: |
| |||
Unaffiliated investment securities | 425,800,688 | |||
| ||||
Affiliated investment securities | 358,245 | |||
| ||||
Foreign currencies | 10,757 | |||
| ||||
426,169,690 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: |
| |||
Unaffiliated investment securities | 2,210,384,062 | |||
| ||||
Affiliated investment securities | (92,235 | ) | ||
| ||||
Foreign currencies | 4,678 | |||
| ||||
2,210,296,505 | ||||
| ||||
Net realized and unrealized gain | 2,636,466,195 | |||
| ||||
Net increase in net assets resulting from operations | $ | 2,612,478,549 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco American Franchise Fund |
Statement of Changes in Net Assets
For the six months ended February 29, 2024 and the year ended August 31, 2023
(Unaudited)
February 29, 2024 | August 31, 2023 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | (23,987,646 | ) | $ | (18,851,373 | ) | ||
| ||||||||
Net realized gain (loss) | 426,169,690 | (434,509,200 | ) | |||||
| ||||||||
Change in net unrealized appreciation | 2,210,296,505 | 2,667,427,265 | ||||||
| ||||||||
Net increase in net assets resulting from operations | 2,612,478,549 | 2,214,066,692 | ||||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | – | (743,113,224 | ) | |||||
| ||||||||
Class C | – | (7,974,418 | ) | |||||
| ||||||||
Class R | – | (3,890,838 | ) | |||||
| ||||||||
Class Y | – | (25,919,532 | ) | |||||
| ||||||||
Class R5 | – | (2,323,344 | ) | |||||
| ||||||||
Class R6 | – | (4,321,886 | ) | |||||
| ||||||||
Total distributions from distributable earnings | – | (787,543,242 | ) | |||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (414,136,053 | ) | (78,588,773 | ) | ||||
| ||||||||
Class C | (4,162,303 | ) | (2,875,398 | ) | ||||
| ||||||||
Class R | 3,728,104 | 9,323,787 | ||||||
| ||||||||
Class Y | (2,023,181 | ) | (35,372,792 | ) | ||||
| ||||||||
Class R5 | 5,124,779 | 1,573,371 | ||||||
| ||||||||
Class R6 | 800,042 | 3,426,695 | ||||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (410,668,612 | ) | (102,513,110 | ) | ||||
| ||||||||
Net increase in net assets | 2,201,809,937 | 1,324,010,340 | ||||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 12,764,132,004 | 11,440,121,664 | ||||||
| ||||||||
End of period | $ | 14,965,941,941 | $ | 12,764,132,004 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco American Franchise Fund |
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Distributions from net realized gains | Net asset value, end of period | Total return(b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income (loss) to average net assets | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | $21.06 | $(0.04 | ) | $4.46 | $4.42 | $ - | $25.48 | 20.99 | % | $14,095,317 | 0.98 | %(d) | 0.98 | %(d) | (0.38 | )%(d) | 25 | % | ||||||||||||||||||||||||||||||
Year ended 08/31/23 | 18.84 | (0.03 | ) | 3.58 | 3.55 | (1.33 | ) | 21.06 | 20.96 | 12,047,012 | 0.99 | 0.99 | (0.18 | ) | 73 | |||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 32.86 | (0.07 | ) | (7.28 | ) | (7.35 | ) | (6.67 | ) | 18.84 | (26.95 | ) | 10,777,375 | 0.95 | 0.95 | (0.29 | ) | 97 | ||||||||||||||||||||||||||||||
Year ended 08/31/21 | 28.90 | (0.14 | ) | 6.62 | 6.48 | (2.52 | ) | 32.86 | 24.04 | 16,037,060 | 0.97 | 0.97 | (0.47 | ) | 57 | |||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 21.27 | (0.03 | ) | 9.17 | 9.14 | (1.51 | ) | 28.90 | 45.42 | 13,733,417 | 1.00 | 1.00 | (0.15 | ) | 52 | |||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 23.12 | (0.01 | ) | (0.04 | ) | (0.05 | ) | (1.80 | ) | 21.27 | 1.21 | 10,115,813 | 1.01 | 1.01 | (0.04 | ) | 43 | |||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 17.07 | (0.10 | ) | 3.60 | 3.50 | - | 20.57 | 20.50 | 122,058 | 1.73 | (d) | 1.73 | (d) | (1.13 | )(d) | 25 | ||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 15.65 | (0.14 | ) | 2.89 | 2.75 | (1.33 | ) | 17.07 | 20.07 | 105,284 | 1.74 | 1.74 | (0.93 | ) | 73 | |||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 28.67 | (0.21 | ) | (6.14 | ) | (6.35 | ) | (6.67 | ) | 15.65 | (27.50 | ) | 98,920 | 1.70 | 1.70 | (1.04 | ) | 97 | ||||||||||||||||||||||||||||||
Year ended 08/31/21 | 25.70 | (0.32 | ) | 5.81 | 5.49 | (2.52 | ) | 28.67 | 23.11 | 164,671 | 1.72 | 1.72 | (1.22 | ) | 57 | |||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 19.21 | (0.18 | ) | 8.18 | 8.00 | (1.51 | ) | 25.70 | 44.30 | 185,177 | 1.75 | 1.75 | (0.90 | ) | 52 | |||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 21.23 | (0.15 | ) | (0.07 | ) | (0.22 | ) | (1.80 | ) | 19.21 | 0.46 | 139,839 | 1.76 | 1.76 | (0.79 | ) | 43 | |||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 19.96 | (0.06 | ) | 4.21 | 4.15 | - | 24.11 | 20.79 | 87,484 | 1.23 | (d) | 1.23 | (d) | (0.63 | )(d) | 25 | ||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 17.97 | (0.07 | ) | 3.39 | 3.32 | (1.33 | ) | 19.96 | 20.68 | 68,815 | 1.24 | 1.24 | (0.43 | ) | 73 | |||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 31.73 | (0.12 | ) | (6.97 | ) | (7.09 | ) | (6.67 | ) | 17.97 | (27.12 | ) | 51,531 | 1.20 | 1.20 | (0.54 | ) | 97 | ||||||||||||||||||||||||||||||
Year ended 08/31/21 | 28.06 | (0.21 | ) | 6.40 | 6.19 | (2.52 | ) | 31.73 | 23.70 | 66,494 | 1.22 | 1.22 | (0.72 | ) | 57 | |||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 20.75 | (0.09 | ) | 8.91 | 8.82 | (1.51 | ) | 28.06 | 45.00 | 50,219 | 1.25 | 1.25 | (0.40 | ) | 52 | |||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 22.65 | (0.06 | ) | (0.04 | ) | (0.10 | ) | (1.80 | ) | 20.75 | 0.99 | 34,114 | 1.26 | 1.26 | (0.29 | ) | 43 | |||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 22.26 | (0.01 | ) | 4.71 | 4.70 | - | 26.96 | 21.12 | 507,599 | 0.73 | (d) | 0.73 | (d) | (0.13 | )(d) | 25 | ||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 19.79 | 0.02 | 3.78 | 3.80 | (1.33 | ) | 22.26 | 21.24 | 421,845 | 0.74 | 0.74 | 0.07 | 73 | |||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 34.08 | (0.01 | ) | (7.61 | ) | (7.62 | ) | (6.67 | ) | 19.79 | (26.75 | ) | 410,990 | 0.70 | 0.70 | (0.04 | ) | 97 | ||||||||||||||||||||||||||||||
Year ended 08/31/21 | 29.81 | (0.07 | ) | 6.86 | 6.79 | (2.52 | ) | 34.08 | 24.36 | 624,045 | 0.72 | 0.72 | (0.22 | ) | 57 | |||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 21.85 | 0.03 | 9.44 | 9.47 | (1.51 | ) | 29.81 | 45.74 | 496,757 | 0.75 | 0.75 | 0.10 | 52 | |||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 23.63 | 0.04 | (0.02 | ) | 0.02 | (1.80 | ) | 21.85 | 1.50 | 350,473 | 0.76 | 0.76 | 0.21 | 43 | ||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 22.39 | (0.01 | ) | 4.75 | 4.74 | - | 27.13 | 21.17 | 56,649 | 0.70 | (d) | 0.70 | (d) | (0.10 | )(d) | 25 | ||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 19.89 | 0.02 | 3.81 | 3.83 | (1.33 | ) | 22.39 | 21.28 | 41,963 | 0.71 | 0.71 | 0.10 | 73 | |||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 34.22 | (0.01 | ) | (7.65 | ) | (7.66 | ) | (6.67 | ) | 19.89 | (26.76 | ) | 35,453 | 0.69 | 0.69 | (0.03 | ) | 97 | ||||||||||||||||||||||||||||||
Year ended 08/31/21 | 29.92 | (0.06 | ) | 6.88 | 6.82 | (2.52 | ) | 34.22 | 24.37 | 51,787 | 0.70 | 0.70 | (0.20 | ) | 57 | |||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 21.91 | 0.04 | 9.48 | 9.52 | (1.51 | ) | 29.92 | 45.85 | 43,712 | 0.70 | 0.70 | 0.15 | 52 | |||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 23.68 | 0.05 | (0.02 | ) | 0.03 | (1.80 | ) | 21.91 | 1.54 | 75,149 | 0.71 | 0.71 | 0.26 | 43 | ||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 22.73 | (0.00 | ) | 4.81 | 4.81 | - | 27.54 | 21.16 | 96,834 | 0.64 | (d) | 0.64 | (d) | (0.04 | )(d) | 25 | ||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 20.16 | 0.03 | 3.87 | 3.90 | (1.33 | ) | 22.73 | 21.35 | 79,212 | 0.64 | 0.64 | 0.17 | 73 | |||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 34.55 | 0.01 | (7.73 | ) | (7.72 | ) | (6.67 | ) | 20.16 | (26.67 | ) | 65,853 | 0.62 | 0.62 | 0.04 | 97 | ||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 30.17 | (0.04 | ) | 6.94 | 6.90 | (2.52 | ) | 34.55 | 24.44 | 96,722 | 0.63 | 0.63 | (0.13 | ) | 57 | |||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 22.07 | 0.05 | 9.56 | 9.61 | (1.51 | ) | 30.17 | 45.93 | 69,977 | 0.62 | 0.62 | 0.23 | 52 | |||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 23.81 | 0.07 | (0.01 | ) | 0.06 | (1.80 | ) | 22.07 | 1.66 | 129,831 | 0.62 | 0.62 | 0.35 | 43 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco American Franchise Fund |
February 29, 2024
(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 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 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 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. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices 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, and their value may be adjusted accordingly. 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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). 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 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.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
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 mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally 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.
11 | Invesco American Franchise Fund |
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
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 an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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. 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
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 based on relative net assets of Class R5 and Class R6. 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. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of |
12 | Invesco American Franchise Fund |
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. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 29, 2024, the Fund paid the Adviser $43,700 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
J. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at 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.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. 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.
K. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
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 exchange of the two currencies on the settlement date, 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).
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 for hedging 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.
L. | Other Risks - The Fund is non-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. |
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. 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 | 0.670% | |
Next $500 million | 0.645% | |
Next $550 million | 0.620% | |
Next $3.45 billion | 0.600% | |
Next $250 million | 0.595% | |
Next $2.25 billion | 0.570% | |
Next $2.5 billion | 0.545% | |
Over $10 billion | 0.520% |
For the six months ended February 29, 2024, the effective advisory fee rate incurred by the Fund was 0.57%.
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 agreed, for an indefinite period, 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 the Fund’s average daily net assets (the “boundary limits”). In determining the
13 | Invesco American Franchise Fund |
Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least June 30, 2025, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the six months ended February 29, 2024, the Adviser waived advisory fees of $38,941.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
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 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A, Class 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 29, 2024, expenses incurred under these agreements are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 29, 2024, IDI advised the Fund that IDI retained $506,102 in front-end sales commissions from the sale of Class A shares and $5,183 and $4,287 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the six months ended February 29, 2024, the Fund incurred $38,268 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. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of February 29, 2024. 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 | $ | 14,705,033,230 | $ | 186,745,758 | $– | $ | 14,891,778,988 | |||||||
| ||||||||||||||
Money Market Funds | 58,967,222 | 648,774,785 | – | 707,742,007 | ||||||||||
| ||||||||||||||
Total Investments | $ | 14,764,000,452 | $ | 835,520,543 | $– | $ | 15,599,520,995 | |||||||
|
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 29, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $107,446.
NOTE 5–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred
14 | Invesco American Franchise Fund |
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 at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 7–Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from 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 fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2023, as follows:
Capital Loss Carryforward* | ||||||||||||
| ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
| ||||||||||||
Not subject to expiration | $ | 494,055,417 | $– | $ | 494,055,417 | |||||||
|
* | Capital loss carryforward 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. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 29, 2024 was $3,301,257,430 and $3,754,167,671, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
| ||||
Aggregate unrealized appreciation of investments | $ | 7,753,676,265 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (28,253,512 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 7,725,422,753 | ||
|
Cost of investments for tax purposes is $7,874,098,242.
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended February 29, 2024(a) | Year ended August 31, 2023 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 9,557,149 | $ | 210,297,070 | 16,986,519 | $ | 312,472,522 | ||||||||||
| ||||||||||||||||
Class C | 683,257 | 12,150,510 | 1,200,060 | 18,205,076 | ||||||||||||
| ||||||||||||||||
Class R | 513,806 | 10,805,833 | 939,588 | 16,253,420 | ||||||||||||
| ||||||||||||||||
Class Y | 2,359,156 | 55,816,966 | 3,856,890 | 73,499,009 | ||||||||||||
| ||||||||||||||||
Class R5 | 388,136 | 9,305,574 | 123,897 | 2,468,141 | ||||||||||||
| ||||||||||||||||
Class R6 | 585,347 | 13,912,793 | 914,776 | 17,859,766 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | - | - | 43,008,977 | 697,605,148 | ||||||||||||
| ||||||||||||||||
Class C | - | - | 581,058 | 7,681,585 | ||||||||||||
| ||||||||||||||||
Class R | - | - | 252,436 | 3,887,528 | ||||||||||||
| ||||||||||||||||
Class Y | - | - | 1,107,125 | 18,942,913 | ||||||||||||
| ||||||||||||||||
Class R5 | - | - | 133,788 | 2,302,493 | ||||||||||||
| ||||||||||||||||
Class R6 | - | - | 233,360 | 4,074,460 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 326,850 | 7,187,208 | 612,680 | 11,245,269 | ||||||||||||
| ||||||||||||||||
Class C | (404,077 | ) | (7,187,208 | ) | (751,411 | ) | (11,245,269 | ) | ||||||||
|
15 | Invesco American Franchise Fund |
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended February 29, 2024(a) | Year ended August 31, 2023 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (28,690,191 | ) | $ | (631,620,331 | ) | (60,508,444 | ) | $ | (1,099,911,712 | ) | ||||||
| ||||||||||||||||
Class C | (514,394 | ) | (9,125,605 | ) | (1,181,038 | ) | (17,516,790 | ) | ||||||||
| ||||||||||||||||
Class R | (333,933 | ) | (7,077,729 | ) | (611,104 | ) | (10,817,161 | ) | ||||||||
| ||||||||||||||||
Class Y | (2,484,558 | ) | (57,840,147 | ) | (6,781,586 | ) | (127,814,714 | ) | ||||||||
| ||||||||||||||||
Class R5 | (173,882 | ) | (4,180,795 | ) | (165,854 | ) | (3,197,263 | ) | ||||||||
| ||||||||||||||||
Class R6 | (554,711 | ) | (13,112,751 | ) | (929,900 | ) | (18,507,531 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (18,742,045 | ) | $ | (410,668,612 | ) | (978,183 | ) | $ | (102,513,110 | ) | ||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 31% 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. |
16 | 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, 2023 through February 29, 2024.
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 (09/01/23) | Ending Account Value (02/29/24)1 | Expenses Paid During Period2 | Ending Account Value (02/29/24) | Expenses Paid During Period2 | Annualized Ratio | |||||||
Class A | $1,000.00 | $1,209.90 | $5.38 | $1,019.99 | $4.92 | 0.98% | ||||||
Class C | 1,000.00 | 1,205.00 | 9.48 | 1,016.26 | 8.67 | 1.73 | ||||||
Class R | 1,000.00 | 1,207.90 | 6.75 | 1,018.75 | 6.17 | 1.23 | ||||||
Class Y | 1,000.00 | 1,211.20 | 4.01 | 1,021.23 | 3.67 | 0.73 | ||||||
Class R5 | 1,000.00 | 1,211.70 | 3.85 | 1,021.38 | 3.52 | 0.70 | ||||||
Class R6 | 1,000.00 | 1,211.60 | 3.52 | 1,021.68 | 3.22 | 0.64 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2023 through February 29, 2024, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
17 | Invesco American Franchise Fund |
A Special Joint Meeting (“Meeting”) of Shareholders of AIM Counselor Series Trust (Invesco Counselor Series Trust), a Delaware statutory trust (“Trust”), was held on January 16, 2024. The Meeting was held for the following purpose:
(1) Elect | 14 trustees to the Board of Trustees of the Trust, each of whom will serve until his or her successor is duly elected and qualified. |
The results of the voting on the above matter were as follows:
Matter
| Votes For
| Votes Against/Withheld
| ||||||||||||
(1)* | Beth Ann Brown | 3,109,848,785.61 | 65,706,470.15 | |||||||||||
Carol Deckbar | 3,109,186,378.07 | 66,368,877.70 | ||||||||||||
Cynthia Hostetler | 3,108,148,647.37 | 67,406,608.40 | ||||||||||||
Dr. Eli Jones | 3,106,962,123.35 | 68,593,132.42 | ||||||||||||
Elizabeth Krentzman | 3,109,153,762.02 | 66,401,493.75 | ||||||||||||
Jeffrey H. Kupor | 3,109,094,174.85 | 66,461,080.92 | ||||||||||||
Anthony J. LaCava, Jr. | 3,107,453,603.09 | 68,101,652.67 | ||||||||||||
James Liddy | 3,108,418,832.17 | 67,136,423.60 | ||||||||||||
Dr. Prema Mathai-Davis | 3,100,922,564.57 | 74,632,691.20 | ||||||||||||
Joel W. Motley | 3,104,496,522.60 | 71,058,733.17 | ||||||||||||
Teresa M. Ressel | 3,109,248,693.76 | 66,306,562.01 | ||||||||||||
Douglas Sharp | 3,108,681,578.09 | 66,873,677.67 | ||||||||||||
Robert C. Troccoli | 3,104,038,320.81 | 71,516,934.96 | ||||||||||||
Daniel S. Vandivort | 3,106,373,978.14 | 69,181,277.62 |
* Proposal 1 required approval by a combined vote of all the portfolios of AIM Counselor Series Trust (Invesco Counselor Series Trust).
18 | Invesco American Franchise Fund |
(This page intentionally left blank)
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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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, 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/ corporate/about-us/esg. 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. This 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 number(s): 811-09913 and 333-36074 | Invesco Distributors, Inc. | VK-AMFR-SAR-1 |
Semiannual Report to Shareholders | February 29, 2024 |
Invesco Capital Appreciation Fund
Nasdaq:
A: OPTFX ∎ C: OTFCX ∎ R: OTCNX ∎ Y: OTCYX ∎ R5: CPTUX ∎ R6: OPTIX
2 | Fund Performance | |
4 | Schedule of Investments | |
7 | Financial Statements | |
10 | Financial Highlights | |
11 | Notes to Financial Statements | |
17 | Fund Expenses | |
18 | Proxy Results |
Beginning in July 2024, amendments adopted by the Securities and Exchange Commission will substantially impact the design, content, and delivery of shareholder reports. These newly designed shareholder reports will highlight key fund information in a clear and concise format and must be mailed to each shareholder that has not elected to receive the reports electronically. Other information, including financial statements, will no longer be included in the shareholder report but will be available at invesco.com/reports, delivered upon request, and filed on a semi-annual basis on Form N-CSR.
If you would like to receive shareholder reports and other communications electronically instead of by mail, you may make that request 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. If you do not make this request or enroll in e-delivery, you will receive future shareholder reports and other communications by mail.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance. Unless otherwise noted, all data is 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, 8/31/23 to 2/29/24, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 21.23 | % | ||
Class C Shares | 20.76 | |||
Class R Shares | 21.05 | |||
Class Y Shares | 21.35 | |||
Class R5 Shares | 21.38 | |||
Class R6 Shares | 21.40 | |||
S&P 500 Index▼ | 13.93 | |||
Russell 1000 Growth Index▼ | 18.20 | |||
Source(s): ▼RIMES Technologies Corp. |
| |||
The S&P 500® Index is an unmanaged index considered representative of the US stock market. |
| |||
The Russell 1000® Growth Index is an unmanaged index considered representative of large-cap growth stocks. The Russell 1000 Growth Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. |
| |||
The 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 visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends. |
|
2 | Invesco Capital Appreciation Fund |
Average Annual Total Returns |
| |||
As of 2/29/24, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (1/22/81) | 11.98 | % | ||
10 Years | 11.76 | |||
5 Years | 15.03 | |||
1 Year | 40.48 | |||
Class C Shares | ||||
Inception (12/1/93) | 9.74 | % | ||
10 Years | 11.70 | |||
5 Years | 15.44 | |||
1 Year | 46.50 | |||
Class R Shares | ||||
Inception (3/1/01) | 6.79 | % | ||
10 Years | 12.09 | |||
5 Years | 16.03 | |||
1 Year | 48.24 | |||
Class Y Shares | ||||
Inception (11/3/97) | 8.53 | % | ||
10 Years | 12.65 | |||
5 Years | 16.60 | |||
1 Year | 48.99 | |||
Class R5 Shares | ||||
10 Years | 12.54 | % | ||
5 Years | 16.65 | |||
1 Year | 49.00 | |||
Class R6 Shares | ||||
Inception (12/29/11) | 14.34 | % | ||
10 Years | 12.84 | |||
5 Years | 16.73 | |||
1 Year | 49.09 |
Effective May 24, 2019, Class A, Class C, Class R, Class Y and Class I shares of the Oppenheimer Capital Appreciation Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y and Class R6 shares, respectively, of the Invesco Oppenheimer Capital Appreciation Fund. The Fund was subsequently renamed the Invesco Capital Appreciation Fund (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class A, Class C, Class R, Class Y and Class R6 shares are those for Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of the predecessor fund’s Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
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 a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 | Invesco Capital Appreciation Fund |
February 29, 2024
(Unaudited)
Shares | Value | |||||
Common Stocks & Other Equity Interests–99.24% | ||||||
Advertising–0.92% | ||||||
Trade Desk, Inc. (The), Class A(b) | 559,759 | $ 47,820,211 | ||||
Aerospace & Defense–1.28% | ||||||
TransDigm Group, Inc. | 56,395 | 66,418,647 | ||||
Apparel Retail–1.22% | ||||||
TJX Cos., Inc. (The) | 639,218 | 63,372,073 | ||||
Apparel, Accessories & Luxury Goods–0.46% | ||||||
lululemon athletica, inc.(b) | 51,009 | 23,825,794 | ||||
Application Software–4.04% | ||||||
Adobe, Inc.(b) | 139,632 | 78,233,017 | ||||
HubSpot, Inc.(b) | 94,949 | 58,755,391 | ||||
Workday, Inc., Class A(b) | 249,263 | 73,447,835 | ||||
210,436,243 | ||||||
Asset Management & Custody Banks–2.61% | ||||||
Ares Management Corp., Class A | 309,424 | 41,038,905 | ||||
KKR & Co., Inc., Class A | 966,646 | 94,982,636 | ||||
136,021,541 | ||||||
Automobile Manufacturers–1.03% | ||||||
Ferrari N.V. (Italy) | 126,777 | 53,851,066 | ||||
Automotive Retail–0.87% | ||||||
O’Reilly Automotive, Inc.(b) | 41,852 | 45,510,702 | ||||
Biotechnology–1.89% | ||||||
Regeneron Pharmaceuticals, Inc.(b) | 48,113 | 46,481,488 | ||||
Vertex Pharmaceuticals, Inc.(b) | 124,051 | 52,193,218 | ||||
98,674,706 | ||||||
Broadline Retail–7.31% | ||||||
Amazon.com, Inc.(b) | 1,933,581 | 341,779,778 | ||||
MercadoLibre, Inc. (Brazil)(b) | 24,524 | 39,123,137 | ||||
380,902,915 | ||||||
Communications Equipment–1.24% | ||||||
Arista Networks, Inc.(b) | 233,044 | 64,679,032 | ||||
Construction & Engineering–1.14% | ||||||
Quanta Services, Inc. | 245,643 | 59,325,241 | ||||
Construction Materials–0.63% | ||||||
Vulcan Materials Co. | 122,991 | 32,697,157 | ||||
Consumer Finance–0.71% | ||||||
American Express Co. | 168,794 | 37,036,780 | ||||
Consumer Staples Merchandise Retail–1.20% | ||||||
Costco Wholesale Corp. | 84,325 | 62,728,524 | ||||
Data Center REITs–0.64% | ||||||
Equinix, Inc. | 37,429 | 33,267,644 | ||||
Diversified Support Services–0.45% | ||||||
Copart, Inc.(b) | 440,805 | 23,428,786 |
Shares | Value | |||||
Electrical Components & Equipment–1.29% | ||||||
Eaton Corp. PLC | 232,909 | $ 67,310,701 | ||||
Financial Exchanges & Data–0.46% |
| |||||
Moody’s Corp. | 62,545 | 23,730,824 | ||||
Health Care Distributors–0.79% | ||||||
McKesson Corp. | 79,404 | 41,402,040 | ||||
Health Care Equipment–4.01% | ||||||
Boston Scientific Corp.(b) | 1,350,590 | 89,422,564 | ||||
DexCom, Inc.(b) | 186,586 | 21,470,451 | ||||
Intuitive Surgical, Inc.(b) | 97,529 | 37,607,182 | ||||
Stryker Corp. | 173,011 | 60,392,950 | ||||
208,893,147 | ||||||
Homebuilding–0.73% | ||||||
Lennar Corp., Class A | 240,798 | 38,168,891 | ||||
Hotels, Resorts & Cruise Lines–0.83% | ||||||
Marriott International, Inc., Class A | 172,837 | 43,186,781 | ||||
Industrial Machinery & Supplies & Components–1.01% | ||||||
Parker-Hannifin Corp. | 98,685 | 52,840,883 | ||||
Insurance Brokers–0.48% | ||||||
Arthur J. Gallagher & Co. | 101,944 | 24,867,200 | ||||
Interactive Media & Services–8.71% | ||||||
Alphabet, Inc., Class C(b) | 1,286,885 | 179,880,785 | ||||
Meta Platforms, Inc., Class A | 558,990 | 273,977,769 | ||||
453,858,554 | ||||||
Internet Services & Infrastructure–2.97% | ||||||
MongoDB, Inc.(b)(c) | 163,013 | 72,961,359 | ||||
Shopify, Inc., Class A (Canada)(b) | 618,663 | 47,247,293 | ||||
Snowflake, Inc., Class A(b) | 183,541 | 34,557,099 | ||||
154,765,751 | ||||||
Managed Health Care–0.72% | ||||||
UnitedHealth Group, Inc. | 75,824 | 37,426,726 | ||||
Movies & Entertainment–1.84% | ||||||
Netflix, Inc.(b) | 158,765 | 95,722,594 | ||||
Oil & Gas Exploration & Production–0.54% | ||||||
Diamondback Energy, Inc. | 154,815 | 28,256,834 | ||||
Passenger Ground Transportation–1.91% | ||||||
Uber Technologies, Inc.(b) | 1,248,360 | 99,244,620 | ||||
Pharmaceuticals–2.57% | ||||||
Eli Lilly and Co. | 177,439 | 133,732,226 | ||||
Restaurants–1.63% | ||||||
Chipotle Mexican Grill, Inc.(b) | 21,645 | 58,198,427 | ||||
DoorDash, Inc., Class A(b) | 213,363 | 26,578,629 | ||||
84,777,056 | ||||||
Semiconductor Materials & Equipment–1.39% | ||||||
Lam Research Corp. | 77,324 | 72,549,243 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 | Invesco Capital Appreciation Fund |
Shares | Value | |||||
Semiconductors–14.49% | ||||||
Advanced Micro Devices, Inc.(b) | 604,206 | $ 116,327,781 | ||||
Broadcom, Inc. | 85,481 | 111,167,185 | ||||
Monolithic Power Systems, Inc. | 115,621 | 83,251,745 | ||||
NVIDIA Corp. | 561,673 | 444,350,744 | ||||
755,097,455 | ||||||
Specialty Chemicals–1.03% | ||||||
Sherwin-Williams Co. (The) | 161,145 | 53,504,974 | ||||
Systems Software–12.42% | ||||||
Microsoft Corp. | 1,250,662 | 517,323,830 | ||||
Palo Alto Networks, Inc.(b)(c) | 137,842 | 42,806,833 | ||||
ServiceNow, Inc.(b) | 112,774 | 86,987,097 | ||||
647,117,760 | ||||||
Technology Hardware, Storage & Peripherals–4.64% | ||||||
Apple, Inc. | 1,338,523 | 241,938,032 | ||||
Trading Companies & Distributors–1.16% |
| |||||
United Rentals, Inc. | 87,289 | 60,514,845 | ||||
Transaction & Payment Processing Services–5.98% | ||||||
Fiserv, Inc.(b) | 260,225 | 38,843,786 | ||||
Mastercard, Inc., Class A | 282,151 | 133,954,009 | ||||
Visa, Inc., Class A | 491,475 | 138,910,494 | ||||
311,708,289 | ||||||
Total Common Stocks & Other Equity Interests |
| 5,170,612,488 |
Shares | Value | |||||||
| ||||||||
Money Market Funds–0.24% |
| |||||||
Invesco Government & Agency Portfolio, Institutional Class, | 4,379,913 | $ | 4,379,913 | |||||
| ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 5.41%(d)(e) | 3,126,317 | 3,127,880 | ||||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 5.23%(d)(e) | 5,005,614 | 5,005,614 | ||||||
| ||||||||
Total Money Market Funds |
| 12,513,407 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.48% |
| 5,183,125,895 | ||||||
| ||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds–1.22% |
| |||||||
Invesco Private Government Fund, 5.29%(d)(e)(f) | 17,850,881 | 17,850,881 | ||||||
| ||||||||
Invesco Private Prime Fund, | 45,879,324 | 45,902,264 | ||||||
| ||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan |
| 63,753,145 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES–100.70% |
| 5,246,879,040 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES–(0.70)% |
| (36,654,335 | ) | |||||
| ||||||||
NET ASSETS–100.00% |
| $ | 5,210,224,705 | |||||
|
Investment Abbreviations:
REIT – Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at February 29, 2024. |
(d) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 29, 2024. |
Value August 31, 2023 | Purchases at Cost | Proceeds from Sales | Change in | Realized Gain | Value February 29, 2024 | Dividend Income | ||||||||||||||||||||||||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ | 12,338,397 | $ | 143,942,025 | $ | (151,900,509) | $ | - | $ | - | $ | 4,379,913 | $ | 311,274 | ||||||||||||||||||||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 8,811,180 | 102,815,733 | (108,503,021) | 33 | 3,955 | 3,127,880 | 231,220 | |||||||||||||||||||||||||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 14,101,025 | 164,505,171 | (173,600,582) | - | - | 5,005,614 | 358,912 | |||||||||||||||||||||||||||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Invesco Private Government Fund | 43,066,889 | 519,855,017 | (545,071,025 | ) | - | - | 17,850,881 | 1,014,028 | * | |||||||||||||||||||||||||||||||||||||||||||
Invesco Private Prime Fund | 110,743,431 | 846,504,250 | (911,404,509 | ) | (706 | ) | 59,798 | 45,902,264 | 2,452,633 | * | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 189,060,922 | $ | 1,777,622,196 | $ | (1,890,479,646 | ) | $ | (673 | ) | $ | 63,753 | $ | 76,266,552 | $ | 4,368,067 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(e) | The rate shown is the 7-day SEC standardized yield as of February 29, 2024. |
(f) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Capital Appreciation Fund |
Portfolio Composition
By sector, based on Net Assets
as of February 29, 2024
Information Technology | 41.20 | % | ||
Consumer Discretionary | 14.08 | |||
Communication Services | 11.47 | |||
Financials | 10.24 | |||
Health Care | 9.98 | |||
Industrials | 8.24 | |||
Other Sectors, Each Less than 2% of Net Assets | 4.03 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.76 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Capital Appreciation Fund |
Statement of Assets and Liabilities
February 29, 2024
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value | $ | 5,170,612,488 | ||
| ||||
Investments in affiliated money market funds, at value (Cost $76,267,371) | 76,266,552 | |||
| ||||
Cash | 5,000,373 | |||
| ||||
Foreign currencies, at value (Cost $289) | 267 | |||
| ||||
Receivable for: | ||||
Investments sold | 23,595,365 | |||
| ||||
Fund shares sold | 903,483 | |||
| ||||
Dividends | 2,865,761 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 469,300 | |||
| ||||
Other assets | 64,599 | |||
| ||||
Total assets | 5,279,778,188 | |||
| ||||
Liabilities: | ||||
Payable for: | ||||
Fund shares reacquired | 2,983,571 | |||
| ||||
Collateral upon return of securities loaned | 63,753,964 | |||
| ||||
Accrued fees to affiliates | 1,858,289 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 346,875 | |||
| ||||
Accrued other operating expenses | 141,484 | |||
| ||||
Trustee deferred compensation and retirement plans | 469,300 | |||
| ||||
Total liabilities | 69,553,483 | |||
| ||||
Net assets applicable to shares outstanding | $ | 5,210,224,705 | ||
| ||||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 2,834,910,901 | ||
| ||||
Distributable earnings | 2,375,313,804 | |||
| ||||
$ | 5,210,224,705 | |||
|
Net Assets: | ||||
Class A | $ | 4,704,924,293 | ||
| ||||
Class C | $ | 163,911,434 | ||
| ||||
Class R | $ | 178,032,766 | ||
| ||||
Class Y | $ | 144,761,235 | ||
| ||||
Class R5 | $ | 75,341 | ||
| ||||
Class R6 | $ | 18,519,636 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 64,508,792 | |||
| ||||
Class C | 4,348,338 | |||
| ||||
Class R | 2,781,234 | |||
| ||||
Class Y | 1,702,579 | |||
| ||||
Class R5 | 1,016 | |||
| ||||
Class R6 | 214,047 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 72.93 | ||
| ||||
Maximum offering price per share | $ | 77.17 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 37.70 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 64.01 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 85.02 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 74.15 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 86.52 | ||
|
* | At February 29, 2024, securities with an aggregate value of $63,001,794 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Capital Appreciation Fund |
Statement of Operations
For the six months ended February 29, 2024
(Unaudited)
Investment income: | ||||
Dividends | $ | 14,018,072 | ||
| ||||
Dividends from affiliated money market funds (includes net securities lending income of $ 146,389) | 1,047,795 | |||
| ||||
Total investment income | 15,065,867 | |||
| ||||
Expenses: | ||||
Advisory fees | 13,117,311 | |||
| ||||
Administrative services fees | 328,722 | |||
| ||||
Custodian fees | 12,650 | |||
| ||||
Distribution fees: | ||||
Class A | 4,610,632 | |||
| ||||
Class C | 728,495 | |||
| ||||
Class R | 376,823 | |||
| ||||
Transfer agent fees – A, C, R and Y | 2,508,054 | |||
| ||||
Transfer agent fees – R5 | 33 | |||
| ||||
Transfer agent fees – R6 | 2,398 | |||
| ||||
Trustees’ and officers’ fees and benefits | 90,260 | |||
| ||||
Registration and filing fees | 58,887 | |||
| ||||
Reports to shareholders | 192,857 | |||
| ||||
Professional services fees | 44,394 | |||
| ||||
Other | 30,571 | |||
| ||||
Total expenses | 22,102,087 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (146,214 | ) | ||
| ||||
Net expenses | 21,955,873 | |||
| ||||
Net investment income (loss) | (6,890,006 | ) | ||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain from: | ||||
Unaffiliated investment securities | 128,175,057 | |||
| ||||
Affiliated investment securities | 63,753 | |||
| ||||
128,238,810 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | 794,455,362 | |||
| ||||
Affiliated investment securities | (673 | ) | ||
| ||||
Foreign currencies | (5 | ) | ||
| ||||
794,454,684 | ||||
| ||||
Net realized and unrealized gain | 922,693,494 | |||
| ||||
Net increase in net assets resulting from operations | $ | 915,803,488 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Capital Appreciation Fund |
Statement of Changes in Net Assets
For the six months ended February 29, 2024 and the year ended August 31, 2023
(Unaudited)
February 29, 2024 | August 31, 2023 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | (6,890,006 | ) | $ | (8,775,400 | ) | ||
| ||||||||
Net realized gain (loss) | 128,238,810 | (211,301,583 | ) | |||||
| ||||||||
Change in net unrealized appreciation | 794,454,684 | 821,400,137 | ||||||
| ||||||||
Net increase in net assets resulting from operations | 915,803,488 | 601,323,154 | ||||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | – | (29,171,892 | ) | |||||
| ||||||||
Class C | – | (2,131,574 | ) | |||||
| ||||||||
Class R | – | (1,132,464 | ) | |||||
| ||||||||
Class Y | – | (701,899 | ) | |||||
| ||||||||
Class R5 | – | (606 | ) | |||||
| ||||||||
Class R6 | – | (83,781 | ) | |||||
| ||||||||
Total distributions from distributable earnings | – | (33,222,216 | ) | |||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (140,457,103 | ) | (264,763,529 | ) | ||||
| ||||||||
Class C | (10,222,052 | ) | (17,953,661 | ) | ||||
| ||||||||
Class R | 1,679,422 | (73,739 | ) | |||||
| ||||||||
Class Y | (6,649,125 | ) | 1,348,296 | |||||
| ||||||||
Class R5 | (876 | ) | (24,187 | ) | ||||
| ||||||||
Class R6 | (443,527 | ) | 659,402 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (156,093,261 | ) | (280,807,418 | ) | ||||
| ||||||||
Net increase in net assets | 759,710,227 | 287,293,520 | ||||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 4,450,514,478 | 4,163,220,958 | ||||||
| ||||||||
End of period | $ | 5,210,224,705 | $ | 4,450,514,478 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Capital Appreciation Fund |
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return(b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed(c) | Ratio of net investment income (loss) to average net assets | Portfolio turnover (d) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | $ | 60.17 | $ | (0.09 | ) | $ | 12.85 | $ | 12.76 | $ | – | $ | – | $ | – | $ | 72.93 | 21.21 | %(e) | $ | 4,704,924 | 0.94 | %(e)(f) | 0.95 | %(e)(f) | (0.27 | )%(e)(f) | 29 | % | |||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 52.44 | (0.10 | ) | 8.25 | 8.15 | – | (0.42 | ) | (0.42 | ) | 60.17 | 15.73 | (e) | 4,017,461 | 0.97 | (e) | 0.97 | (e) | (0.20 | )(e) | 83 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 88.67 | (0.22 | ) | (16.26 | ) | (16.48 | ) | – | (19.75 | ) | (19.75 | ) | 52.44 | (23.55 | )(e) | 3,767,413 | 0.94 | (e) | 0.94 | (e) | (0.35 | )(e) | 70 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 70.34 | (0.35 | ) | 21.03 | 20.68 | – | (2.35 | ) | (2.35 | ) | 88.67 | 30.19 | (e) | 5,364,306 | 0.95 | (e) | 0.95 | (e) | (0.46 | )(e) | 78 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 62.38 | (0.12 | ) | 21.17 | 21.05 | – | (13.09 | ) | (13.09 | ) | 70.34 | 39.41 | (e) | 4,478,067 | 1.00 | (e) | 1.00 | (e) | (0.22 | )(e) | 31 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 65.82 | (0.03 | ) | 1.23 | 1.20 | – | (4.64 | ) | (4.64 | ) | 62.38 | 2.97 | 3,566,269 | 1.03 | (g) | 1.03 | (0.06 | ) | 64 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class C |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 31.22 | (0.17 | ) | 6.65 | 6.48 | – | – | – | 37.70 | 20.76 | 163,911 | 1.71 | (f) | 1.72 | (f) | (1.04 | )(f) | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 27.63 | (0.26 | ) | 4.27 | 4.01 | – | (0.42 | ) | (0.42 | ) | 31.22 | 14.86 | 145,370 | 1.74 | 1.74 | (0.97 | ) | 83 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 56.55 | (0.40 | ) | (8.77 | ) | (9.17 | ) | – | (19.75 | ) | (19.75 | ) | 27.63 | (24.16 | ) | 146,841 | 1.71 | 1.71 | (1.12 | ) | 70 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 46.01 | (0.60 | ) | 13.49 | 12.89 | – | (2.35 | ) | (2.35 | ) | 56.55 | 29.17 | 221,514 | 1.73 | 1.73 | (1.24 | ) | 78 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 45.21 | (0.39 | ) | 14.28 | 13.89 | – | (13.09 | ) | (13.09 | ) | 46.01 | 38.34 | 230,567 | 1.78 | 1.78 | (1.00 | ) | 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 49.50 | (0.36 | ) | 0.71 | 0.35 | – | (4.64 | ) | (4.64 | ) | 45.21 | 2.18 | 201,751 | 1.80 | (g) | 1.80 | (0.83 | ) | 64 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class R |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 52.88 | (0.15 | ) | 11.28 | 11.13 | – | – | – | 64.01 | 21.05 | 178,033 | 1.21 | (f) | 1.22 | (f) | (0.54 | )(f) | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 46.26 | (0.21 | ) | 7.25 | 7.04 | – | (0.42 | ) | (0.42 | ) | 52.88 | 15.43 | 145,497 | 1.24 | 1.24 | (0.47 | ) | 83 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 80.77 | (0.36 | ) | (14.40 | ) | (14.76 | ) | – | (19.75 | ) | (19.75 | ) | 46.26 | (23.76 | ) | 127,130 | 1.21 | 1.21 | (0.62 | ) | 70 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 64.44 | (0.51 | ) | 19.19 | 18.68 | – | (2.35 | ) | (2.35 | ) | 80.77 | 29.83 | 175,274 | 1.23 | 1.23 | (0.74 | ) | 78 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 58.28 | (0.26 | ) | 19.51 | 19.25 | – | (13.09 | ) | (13.09 | ) | 64.44 | 39.04 | 147,187 | 1.28 | 1.28 | (0.50 | ) | 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 62.00 | (0.18 | ) | 1.10 | 0.92 | – | (4.64 | ) | (4.64 | ) | 58.28 | 2.68 | 117,019 | 1.30 | (g) | 1.30 | (0.32 | ) | 64 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 70.07 | (0.02 | ) | 14.97 | 14.95 | – | – | – | 85.02 | 21.33 | 144,761 | 0.71 | (f) | 0.72 | (f) | (0.04 | )(f) | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 60.85 | 0.02 | 9.62 | 9.64 | – | (0.42 | ) | (0.42 | ) | 70.07 | 16.01 | 126,483 | 0.74 | 0.74 | 0.03 | 83 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 99.48 | (0.09 | ) | (18.79 | ) | (18.88 | ) | – | (19.75 | ) | (19.75 | ) | 60.85 | (23.38 | ) | 108,866 | 0.71 | 0.71 | (0.12 | ) | 70 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 78.49 | (0.21 | ) | 23.55 | 23.34 | – | (2.35 | ) | (2.35 | ) | 99.48 | 30.44 | 158,879 | 0.73 | 0.73 | (0.24 | ) | 78 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 68.08 | 0.01 | 23.49 | 23.50 | – | (13.09 | ) | (13.09 | ) | 78.49 | 39.75 | 114,061 | 0.78 | 0.78 | 0.00 | 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 71.23 | 0.11 | 1.40 | 1.51 | (0.02 | ) | (4.64 | ) | (4.66 | ) | 68.08 | 3.20 | 95,438 | 0.80 | (g) | 0.80 | 0.17 | 64 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 61.11 | (0.01 | ) | 13.05 | 13.04 | – | – | – | 74.15 | 21.34 | 75 | 0.71 | (f) | 0.71 | (f) | (0.04 | )(f) | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 53.11 | 0.03 | 8.39 | 8.42 | – | (0.42 | ) | (0.42 | ) | 61.11 | 16.04 | 62 | 0.72 | 0.72 | 0.05 | 83 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 89.38 | (0.06 | ) | (16.46 | ) | (16.52 | ) | – | (19.75 | ) | (19.75 | ) | 53.11 | (23.38 | ) | 77 | 0.70 | 0.70 | (0.11 | ) | 70 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 70.69 | (0.14 | ) | 21.18 | 21.04 | – | (2.35 | ) | (2.35 | ) | 89.38 | 30.55 | 46 | 0.67 | 0.69 | (0.18 | ) | 78 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 62.44 | 0.07 | 21.27 | 21.34 | – | (13.09 | ) | (13.09 | ) | 70.69 | 39.90 | 36 | 0.67 | 0.67 | 0.11 | 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended 08/31/19(h) | 58.66 | 0.05 | 3.73 | 3.78 | – | – | – | 62.44 | 6.44 | 11 | 0.68 | (f)(g) | 0.68 | (f) | 0.29 | (f) | 64 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 71.27 | 0.01 | 15.24 | 15.25 | – | – | – | 86.52 | 21.40 | 18,520 | 0.64 | (f) | 0.64 | (f) | 0.03 | (f) | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 61.84 | 0.07 | 9.78 | 9.85 | – | (0.42 | ) | (0.42 | ) | 71.27 | 16.09 | 15,641 | 0.65 | 0.65 | 0.12 | 83 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 100.70 | (0.03 | ) | (19.08 | ) | (19.11 | ) | – | (19.75 | ) | (19.75 | ) | 61.84 | (23.32 | ) | 12,895 | 0.63 | 0.63 | (0.04 | ) | 70 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 79.32 | (0.12 | ) | 23.85 | 23.73 | – | (2.35 | ) | (2.35 | ) | 100.70 | 30.62 | 19,838 | 0.62 | 0.63 | (0.13 | ) | 78 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 68.60 | 0.10 | 23.71 | 23.81 | – | (13.09 | ) | (13.09 | ) | 79.32 | 39.91 | 14,514 | 0.63 | 0.67 | 0.15 | 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 71.57 | 0.23 | 1.58 | 1.81 | (0.14 | ) | (4.64 | ) | (4.78 | ) | 68.60 | 3.66 | 9,747 | 0.63 | (g) | 0.63 | 0.33 | 64 |
(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) | Does not include indirect expenses from affiliated fund fees and expenses of 0.00% for the year ended August 31, 2019. |
(d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.23% for the six months ended February 29, 2024 and 0.23%, 0.23%, 0.22% and 0.22% for the years ended August 31, 2023, 2022, 2021 and 2020, respectively. |
(f) | Annualized. |
(g) | Includes fee waivers which were less than 0.005% per share. (h) Commencement date after the close of business on May 24, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Capital Appreciation Fund |
February 29, 2024
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Capital Appreciation 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 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 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. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices 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, and their value may be adjusted accordingly. 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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). 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 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.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
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 mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally 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.
11 | Invesco Capital Appreciation Fund |
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
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 an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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. 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions ��� Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
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 based on relative net assets of Class R5 and Class R6. 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. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of |
12 | Invesco Capital Appreciation Fund |
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.
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 29, 2024, the Fund paid the Adviser $9,601 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
J. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at 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.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. 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.
K. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
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 exchange of the two currencies on the settlement date, 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).
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 for hedging 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.
L. | Other Risks – The Fund is non-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. |
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. 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* | |||
| ||||
Up to $200 million | 0.750% | |||
| ||||
Next $200 million | 0.720% | |||
| ||||
Next $200 million | 0.690% | |||
| ||||
Next $200 million | 0.660% | |||
| ||||
Next $700 million | 0.600% | |||
| ||||
Next $1 billion | 0.580% | |||
| ||||
Next $2 billion | 0.560% | |||
| ||||
Next $2 billion | 0.540% | |||
| ||||
Next $2 billion | 0.520% | |||
| ||||
Next $2.5 billion | 0.500% | |||
| ||||
Over $11 billion | 0.480% | |||
|
* | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the six months ended February 29, 2024, the effective advisory fee rate incurred by the Fund was 0.58%.
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. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (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
13 | Invesco Capital Appreciation Fund |
to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has agreed, for an indefinite period, 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 the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least June 30, 2025, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the six months ended February 29, 2024, the Adviser waived advisory fees of $17,547.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
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 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, 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 Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 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 Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 29, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 29, 2024, IDI advised the Fund that IDI retained $186,857 in front-end sales commissions from the sale of Class A shares and $4,162 and $2,182 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the six months ended February 29, 2024, the Fund incurred $571 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. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of February 29, 2024. 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 | $ | 5,170,612,488 | $ | – | $– | $ | 5,170,612,488 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Money Market Funds | 12,513,407 | 63,753,145 | – | 76,266,552 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Total Investments | $ | 5,183,125,895 | $ | 63,753,145 | $– | $ | 5,246,879,040 | |||||||||||||||||||||
|
14 | Invesco Capital Appreciation Fund |
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 29, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $128,667.
NOTE 5–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees 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 at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 7–Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from 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 fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2023, as follows:
Capital Loss Carryforward* | ||||||||||||||||
| ||||||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||||||
| ||||||||||||||||
Not subject to expiration | $ | 198,728,513 | $– | $198,728,513 | ||||||||||||
|
* | Capital loss carryforward 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. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 29, 2024 was $1,302,971,493 and $1,467,484,595, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
| ||||
Aggregate unrealized appreciation of investments | $ | 2,471,931,347 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (8,948,389 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 2,462,982,958 | ||
|
Cost of investments for tax purposes is $2,783,896,082.
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
February 29, 2024 | August 31, 2023 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 1,626,732 | $ | 102,897,816 | 2,848,488 | $ | 148,836,766 | ||||||||||
| ||||||||||||||||
Class C | 362,152 | 11,772,325 | 696,702 | 18,855,076 | ||||||||||||
| ||||||||||||||||
Class R | 264,860 | 14,719,663 | 464,153 | 21,363,902 | ||||||||||||
| ||||||||||||||||
Class Y | 386,853 | 28,031,994 | 671,686 | 40,535,147 | ||||||||||||
| ||||||||||||||||
Class R5 | 415 | 23,692 | - | - | ||||||||||||
| ||||||||||||||||
Class R6 | 29,267 | 2,170,712 | 68,973 | 4,249,700 | ||||||||||||
|
15 | Invesco Capital Appreciation Fund |
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
February 29, 2024 | August 31, 2023 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | - | $ | - | 587,370 | $ | 28,299,452 | ||||||||||
| ||||||||||||||||
Class C | - | - | 84,255 | 2,118,157 | ||||||||||||
| ||||||||||||||||
Class R | - | - | 26,613 | 1,129,190 | ||||||||||||
| ||||||||||||||||
Class Y | - | - | 10,602 | 593,926 | ||||||||||||
| ||||||||||||||||
Class R5 | - | - | 11 | 535 | ||||||||||||
| ||||||||||||||||
Class R6 | - | - | 1,300 | 74,042 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 146,213 | 9,299,827 | 293,650 | 15,248,127 | ||||||||||||
| ||||||||||||||||
Class C | (282,472 | ) | (9,299,827 | ) | (562,734 | ) | (15,248,127 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (4,030,016 | ) | (252,654,746 | ) | (8,810,555 | ) | (457,147,874 | ) | ||||||||
| ||||||||||||||||
Class C | (387,812 | ) | (12,694,550 | ) | (875,419 | ) | (23,678,767 | ) | ||||||||
| ||||||||||||||||
Class R | (234,967 | ) | (13,040,241 | ) | (487,446 | ) | (22,566,831 | ) | ||||||||
| ||||||||||||||||
Class Y | (489,425 | ) | (34,681,119 | ) | (666,224 | ) | (39,780,777 | ) | ||||||||
| ||||||||||||||||
Class R5 | (415 | ) | (24,568 | ) | (452 | ) | (24,722 | ) | ||||||||
| ||||||||||||||||
Class R6 | (34,665 | ) | (2,614,239 | ) | (59,356 | ) | (3,664,340 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (2,643,280 | ) | $ | (156,093,261 | ) | (5,708,383 | ) | $ | (280,807,418 | ) | ||||||
|
16 | Invesco Capital Appreciation 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, 2023 through February 29, 2024.
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 (09/01/23) | Ending Account Value (02/29/24)1 | Expenses Paid During Period2 | Ending Account Value (02/29/24) | Expenses Paid During Period2 | Annualized Expense Ratio | |||||||
Class A | $1,000.00 | $1,212.30 | $5.17 | $1,020.19 | $4.72 | 0.94% | ||||||
Class C | 1,000.00 | 1,207.60 | 9.39 | 1,016.36 | 8.57 | 1.71 | ||||||
Class R | 1,000.00 | 1,210.50 | 6.65 | 1,018.85 | 6.07 | 1.21 | ||||||
Class Y | 1,000.00 | 1,213.50 | 3.91 | 1,021.33 | 3.57 | 0.71 | ||||||
Class R5 | 1,000.00 | 1,213.80 | 3.91 | 1,021.33 | 3.57 | 0.71 | ||||||
Class R6 | 1,000.00 | 1,214.00 | 3.52 | 1,021.68 | 3.22 | 0.64 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2023 through February 29, 2024, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
17 | Invesco Capital Appreciation Fund |
A Special Joint Meeting (“Meeting”) of Shareholders of AIM Counselor Series Trust (Invesco Counselor Series Trust), a Delaware statutory trust (“Trust”), was held on January 16, 2024. The Meeting was held for the following purpose:
(1) Elect 14 trustees to the Board of Trustees of the Trust, each of whom will serve until his or her successor is duly elected and qualified.
The results of the voting on the above matter were as follows:
Matter | Votes For | Votes Against/Withheld | ||||||||||
(1)* | Beth Ann Brown | 3,109,848,785.61 | 65,706,470.15 | |||||||||
Carol Deckbar | 3,109,186,378.07 | 66,368,877.70 | ||||||||||
Cynthia Hostetler | 3,108,148,647.37 | 67,406,608.40 | ||||||||||
Dr. Eli Jones | 3,106,962,123.35 | 68,593,132.42 | ||||||||||
Elizabeth Krentzman | 3,109,153,762.02 | 66,401,493.75 | ||||||||||
Jeffrey H. Kupor | 3,109,094,174.85 | 66,461,080.92 | ||||||||||
Anthony J. LaCava, Jr. | 3,107,453,603.09 | 68,101,652.67 | ||||||||||
James Liddy | 3,108,418,832.17 | 67,136,423.60 | ||||||||||
Dr. Prema Mathai-Davis | 3,100,922,564.57 | 74,632,691.20 | ||||||||||
Joel W. Motley | 3,104,496,522.60 | 71,058,733.17 | ||||||||||
Teresa M. Ressel | 3,109,248,693.76 | 66,306,562.01 | ||||||||||
Douglas Sharp | 3,108,681,578.09 | 66,873,677.67 | ||||||||||
Robert C. Troccoli | 3,104,038,320.81 | 71,516,934.96 | ||||||||||
Daniel S. Vandivort | 3,106,373,978.14 | 69,181,277.62 |
* Proposal 1 required approval by a combined vote of all the portfolios of AIM Counselor Series Trust (Invesco Counselor Series Trust).
18 | Invesco Capital Appreciation 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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, 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/corporate/about-us/esg. 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. This 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 number(s): 811-09913 and 333-36074 | Invesco Distributors, Inc. | O-CAPA-SAR-1 |
Semiannual Report to Shareholders | February 29, 2024 |
Invesco Core Plus Bond Fund
Nasdaq: |
A: ACPSX ∎ C: CPCFX ∎ R: CPBRX ∎ Y: CPBYX ∎ R5: CPIIX ∎ R6: CPBFX |
2 | ||
4 | ||
27 | ||
30 | ||
31 | ||
39 | ||
40 |
Beginning in July 2024, amendments adopted by the Securities and Exchange Commission will substantially impact the design, content, and delivery of shareholder reports. These newly designed shareholder reports will highlight key fund information in a clear and concise format and must be mailed to each shareholder that has not elected to receive the reports electronically. Other information, including financial statements, will no longer be included in the shareholder report but will be available at invesco.com/reports, delivered upon request, and filed on a semi-annual basis on Form N-CSR.
If you would like to receive shareholder reports and other communications electronically instead of by mail, you may make that request 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. If you do not make this request or enroll in e-delivery, you will receive future shareholder reports and other communications by mail.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is 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, 8/31/23 to 2/29/24, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 3.86 | % | ||
Class C Shares | 3.48 | |||
Class R Shares | 3.74 | |||
Class Y Shares | 3.88 | |||
Class R5 Shares | 3.88 | |||
Class R6 Shares | 4.01 | |||
Bloomberg U.S. Aggregate Bond Index▼ (Broad Market/Style-Specific Index) | 2.35 | |||
Lipper Core Plus Bond Funds Index∎ (Peer Group Index) | 2.97 | |||
Source(s): ▼RIMES Technologies Corp.; ∎Lipper Inc. |
| |||
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market. The Lipper Core Plus Bond 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 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. |
|
For more information about your Fund
|
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.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, visit blog.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 2/29/24, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (6/3/09) | 2.97 | % | ||
10 Years | 1.59 | |||
5 Years | 0.36 | |||
1 Year | -0.87 | |||
Class C Shares | ||||
Inception (6/3/09) | 2.85 | % | ||
10 Years | 1.43 | |||
5 Years | 0.50 | |||
1 Year | 1.89 | |||
Class R Shares | ||||
Inception (6/3/09) | 3.02 | % | ||
10 Years | 1.78 | |||
5 Years | 0.98 | |||
1 Year | 3.40 | |||
Class Y Shares | ||||
Inception (6/3/09) | 3.53 | % | ||
10 Years | 2.28 | |||
5 Years | 1.47 | |||
1 Year | 3.81 | |||
Class R5 Shares | ||||
Inception (6/3/09) | 3.53 | % | ||
10 Years | 2.30 | |||
5 Years | 1.48 | |||
1 Year | 3.80 | |||
Class R6 Shares | ||||
Inception (9/24/12) | 2.35 | % | ||
10 Years | 2.36 | |||
5 Years | 1.54 | |||
1 Year | 3.85 |
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
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 a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees
and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 | Invesco Core Plus Bond Fund |
February 29, 2024
(Unaudited)
Principal Amount | Value | |||||||
| ||||||||
U.S. Dollar Denominated Bonds & Notes–47.12% |
| |||||||
Aerospace & Defense–0.95% | ||||||||
L3Harris Technologies, Inc., | ||||||||
5.40%, 07/31/2033(b) | $ | 1,020,000 | $ | 1,021,218 | ||||
| ||||||||
5.60%, 07/31/2053 | 1,063,000 | 1,072,832 | ||||||
| ||||||||
Lockheed Martin Corp., | ||||||||
5.10%, 11/15/2027 | 909,000 | 919,384 | ||||||
| ||||||||
4.50%, 02/15/2029 | 5,071,000 | 4,986,119 | ||||||
| ||||||||
4.80%, 08/15/2034 | 7,325,000 | 7,166,312 | ||||||
| ||||||||
5.90%, 11/15/2063 | 660,000 | 719,523 | ||||||
| ||||||||
5.20%, 02/15/2064 | 3,868,000 | 3,781,463 | ||||||
RTX Corp., | ||||||||
5.75%, 01/15/2029(b) | 3,052,000 | 3,144,716 | ||||||
| ||||||||
6.00%, 03/15/2031 | 2,264,000 | 2,359,006 | ||||||
| ||||||||
5.15%, 02/27/2033 | 2,902,000 | 2,874,729 | ||||||
| ||||||||
6.40%, 03/15/2054 | 2,430,000 | 2,691,889 | ||||||
TransDigm, Inc., | ||||||||
6.75%, 08/15/2028(c) | 4,650,000 | 4,711,408 | ||||||
| ||||||||
6.38%, 03/01/2029(c) | 6,958,000 | 6,998,149 | ||||||
| ||||||||
6.63%, 03/01/2032(b)(c) | 5,131,000 | 5,169,473 | ||||||
| ||||||||
47,616,221 | ||||||||
| ||||||||
Air Freight & Logistics–0.08% |
| |||||||
United Parcel Service, Inc., | 4,052,000 | 3,936,610 | ||||||
| ||||||||
Apparel, Accessories & Luxury Goods–0.05% |
| |||||||
Tapestry, Inc., 7.00%, 11/27/2026(b) | 2,484,000 | 2,552,431 | ||||||
| ||||||||
Application Software–0.24% | ||||||||
Constellation Software, Inc. (Canada), 5.46%, 02/16/2034(b)(c) | 5,912,000 | 5,914,520 | ||||||
| ||||||||
Intuit, Inc., | ||||||||
5.20%, 09/15/2033 | 3,752,000 | 3,792,230 | ||||||
| ||||||||
5.50%, 09/15/2053 | 2,416,000 | 2,486,606 | ||||||
| ||||||||
12,193,356 | ||||||||
| ||||||||
Asset Management & Custody Banks–0.76% |
| |||||||
Ameriprise Financial, Inc., | ||||||||
5.70%, 12/15/2028 | 5,113,000 | 5,261,514 | ||||||
| ||||||||
5.15%, 05/15/2033 | 3,202,000 | 3,203,778 | ||||||
| ||||||||
Ares Capital Corp., 5.88%, | 93,000 | 90,941 | ||||||
| ||||||||
Bank of New York Mellon Corp. (The), | ||||||||
5.83%, 10/25/2033(d) | 906,000 | 941,159 | ||||||
| ||||||||
Series J, 4.97%, 04/26/2034(d) | 1,659,000 | 1,617,429 | ||||||
| ||||||||
Blackstone Secured Lending Fund, 2.13%, 02/15/2027(b) | 5,027,000 | 4,513,835 | ||||||
| ||||||||
Golub Capital BDC, Inc., | 8,105,000 | 7,872,112 | ||||||
| ||||||||
Northern Trust Corp., | 1,169,000 | 1,231,200 | ||||||
|
Principal Amount | Value | |||||||
| ||||||||
Asset Management & Custody Banks–(continued) |
| |||||||
State Street Corp., | ||||||||
5.68%, 11/21/2029(b)(d) | $ | 8,038,000 | $ | 8,215,734 | ||||
| ||||||||
6.12%, 11/21/2034(d) | 5,052,000 | 5,225,257 | ||||||
| ||||||||
38,172,959 | ||||||||
| ||||||||
Automobile Manufacturers–0.96% |
| |||||||
American Honda Finance Corp., 4.90%, 01/10/2034(b) | 5,588,000 | 5,448,949 | ||||||
| ||||||||
Daimler Truck Finance North America LLC (Germany), | ||||||||
5.00%, 01/15/2027(b)(c) | 2,487,000 | 2,478,343 | ||||||
| ||||||||
5.38%, 01/18/2034(b)(c) | 1,707,000 | 1,702,139 | ||||||
| ||||||||
Ford Motor Credit Co. LLC, | ||||||||
6.95%, 06/10/2026 | 4,343,000 | 4,430,875 | ||||||
| ||||||||
7.35%, 11/04/2027(b) | 4,035,000 | 4,218,738 | ||||||
| ||||||||
6.80%, 05/12/2028 | 5,921,000 | 6,112,743 | ||||||
| ||||||||
6.80%, 11/07/2028 | 3,930,000 | 4,075,268 | ||||||
| ||||||||
7.20%, 06/10/2030(b) | 2,289,000 | 2,412,631 | ||||||
| ||||||||
7.12%, 11/07/2033(b) | 2,360,000 | 2,517,195 | ||||||
| ||||||||
Hyundai Capital America, | ||||||||
5.60%, 03/30/2028(c) | 2,320,000 | 2,342,661 | ||||||
| ||||||||
5.80%, 04/01/2030(c) | 516,000 | 527,124 | ||||||
| ||||||||
Mercedes-Benz Finance North America LLC (Germany), | ||||||||
5.10%, 08/03/2028(b)(c) | 3,716,000 | 3,730,791 | ||||||
| ||||||||
4.85%, 01/11/2029(b)(c) | 4,584,000 | 4,545,012 | ||||||
| ||||||||
5.00%, 01/11/2034(c) | 1,087,000 | 1,067,812 | ||||||
| ||||||||
Toyota Motor Credit Corp., | 2,174,000 | 2,207,794 | ||||||
| ||||||||
47,818,075 | ||||||||
| ||||||||
Automotive Parts & Equipment–0.54% |
| |||||||
ERAC USA Finance LLC, | ||||||||
5.00%, 02/15/2029(b)(c) | 3,947,000 | 3,923,757 | ||||||
| ||||||||
4.90%, 05/01/2033(c) | 2,873,000 | 2,804,105 | ||||||
| ||||||||
5.20%, 10/30/2034(c) | 5,601,000 | 5,558,864 | ||||||
| ||||||||
ZF North America Capital, Inc. (Germany), | ||||||||
6.88%, 04/14/2028(c) | 5,242,000 | 5,356,181 | ||||||
| ||||||||
7.13%, 04/14/2030(b)(c) | 8,695,000 | 9,066,050 | ||||||
| ||||||||
26,708,957 | ||||||||
| ||||||||
Automotive Retail–0.09% | ||||||||
Advance Auto Parts, Inc., 5.95%, 03/09/2028(b) | 2,387,000 | 2,385,644 | ||||||
| ||||||||
AutoZone, Inc., 5.20%, 08/01/2033 | 1,996,000 | 1,979,245 | ||||||
| ||||||||
4,364,889 | ||||||||
| ||||||||
Biotechnology–1.02% | ||||||||
AbbVie, Inc., | ||||||||
4.80%, 03/15/2029(b) | 6,864,000 | 6,833,846 | ||||||
| ||||||||
5.05%, 03/15/2034(b) | 9,986,000 | 10,039,550 | ||||||
| ||||||||
5.35%, 03/15/2044(b) | 5,576,000 | 5,631,006 | ||||||
| ||||||||
5.40%, 03/15/2054(b) | 6,450,000 | 6,552,382 | ||||||
| ||||||||
5.50%, 03/15/2064 | 6,621,000 | 6,702,594 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
| ||||||||
Biotechnology–(continued) | ||||||||
Amgen, Inc., | ||||||||
5.25%, 03/02/2025 | $ | 1,972,000 | $ | 1,967,528 | ||||
| ||||||||
5.15%, 03/02/2028 | 2,435,000 | 2,440,737 | ||||||
| ||||||||
5.25%, 03/02/2030(b) | 1,002,000 | 1,009,941 | ||||||
| ||||||||
5.65%, 03/02/2053 | 4,037,000 | 4,038,183 | ||||||
| ||||||||
Gilead Sciences, Inc., | ||||||||
5.25%, 10/15/2033(b) | 3,670,000 | 3,714,688 | ||||||
| ||||||||
5.55%, 10/15/2053(b) | 1,852,000 | 1,889,607 | ||||||
| ||||||||
50,820,062 | ||||||||
| ||||||||
Brewers–0.01% | ||||||||
Central American Bottling | 400,000 | 375,432 | ||||||
| ||||||||
Cia Cervecerias Unidas S.A. | 250,000 | 214,175 | ||||||
| ||||||||
589,607 | ||||||||
| ||||||||
Broadline Retail–0.04% | ||||||||
Alibaba Group Holding Ltd. | 600,000 | 488,543 | ||||||
| ||||||||
B2W Digital Lux S.a.r.l. (Brazil), | 600,000 | 130,500 | ||||||
| ||||||||
Falabella S.A. (Chile), | 200,000 | 182,211 | ||||||
| ||||||||
Grupo Axo, S.A.P.I. de C.V. | 800,000 | 758,918 | ||||||
| ||||||||
Prosus N.V. (China), | ||||||||
3.06%, 07/13/2031(c) | 200,000 | 161,530 | ||||||
| ||||||||
4.19%, 01/19/2032(c) | 200,000 | 171,445 | ||||||
| ||||||||
1,893,147 | ||||||||
| ||||||||
Building Products–0.13% | ||||||||
Carrier Global Corp., | ||||||||
5.90%, 03/15/2034 | 1,284,000 | 1,332,675 | ||||||
| ||||||||
6.20%, 03/15/2054 | 1,665,000 | 1,818,689 | ||||||
| ||||||||
Lennox International, Inc., | 3,149,000 | 3,179,891 | ||||||
| ||||||||
6,331,255 | ||||||||
| ||||||||
Cable & Satellite–0.54% | ||||||||
CCO Holdings LLC/CCO Holdings Capital Corp., | ||||||||
6.38%, 09/01/2029(b)(c) | 8,833,000 | 8,305,022 | ||||||
| ||||||||
7.38%, 03/01/2031(b)(c) | 4,925,000 | 4,775,052 | ||||||
| ||||||||
Charter Communications | 5,964,000 | 5,988,632 | ||||||
| ||||||||
Comcast Corp., 5.50%, 11/15/2032(b) | 1,862,000 | 1,910,421 | ||||||
| ||||||||
Cox Communications, Inc., | ||||||||
5.70%, 06/15/2033(c) | 882,000 | 883,597 | ||||||
| ||||||||
5.80%, 12/15/2053(c) | 5,195,000 | 5,063,557 | ||||||
| ||||||||
26,926,281 | ||||||||
|
Principal Amount | Value | |||||||
| ||||||||
Cargo Ground Transportation–0.25% |
| |||||||
Penske Truck Leasing Co. L.P./PTL Finance Corp., | ||||||||
5.75%, 05/24/2026(b)(c) | $ | 648,000 | $ | 651,582 | ||||
| ||||||||
5.35%, 01/12/2027(b)(c) | 685,000 | 683,392 | ||||||
| ||||||||
5.70%, 02/01/2028(c) | 942,000 | 951,059 | ||||||
| ||||||||
5.55%, 05/01/2028(c) | 2,007,000 | 2,020,326 | ||||||
| ||||||||
6.05%, 08/01/2028(c) | 2,143,000 | 2,193,230 | ||||||
| ||||||||
6.20%, 06/15/2030(c) | 858,000 | 889,146 | ||||||
| ||||||||
Ryder System, Inc., | 4,567,000 | 4,892,738 | ||||||
| ||||||||
12,281,473 | ||||||||
| ||||||||
Casinos & Gaming–0.03% | ||||||||
Caesars Entertainment, Inc., | 1,074,000 | 1,082,708 | ||||||
| ||||||||
Wynn Macau Ltd. (Macau), | 400,000 | 360,791 | ||||||
| ||||||||
1,443,499 | ||||||||
| ||||||||
Coal & Consumable Fuels–0.01% |
| |||||||
PT Adaro Indonesia (Indonesia), | 400,000 | 392,532 | ||||||
| ||||||||
Commercial & Residential Mortgage Finance–0.32% |
| |||||||
Aviation Capital Group LLC, | ||||||||
6.25%, 04/15/2028(c) | 1,587,000 | 1,611,385 | ||||||
| ||||||||
6.75%, 10/25/2028(c) | 4,558,000 | 4,726,343 | ||||||
| ||||||||
Nationwide Building Society | 3,129,000 | 3,203,844 | ||||||
| ||||||||
Radian Group, Inc., | 5,705,000 | 5,725,150 | ||||||
| ||||||||
Rocket Mortgage LLC/Rocket Mortgage Co-Issuer, Inc., 2.88%, 10/15/2026(b)(c) | 531,000 | 489,117 | ||||||
| ||||||||
15,755,839 | ||||||||
| ||||||||
Communications Equipment–0.03% |
| |||||||
Cisco Systems, Inc., 5.30%, 02/26/2054 | 1,704,000 | 1,725,998 | ||||||
| ||||||||
Computer & Electronics Retail–0.03% |
| |||||||
Leidos, Inc., 5.75%, 03/15/2033 | 1,292,000 | 1,313,985 | ||||||
| ||||||||
Construction & Engineering–0.01% |
| |||||||
Bioceanico Sovereign Certificate Ltd. (Paraguay), 0.00%, 06/05/2034(c)(f) | 130,161 | 94,822 | ||||||
| ||||||||
Mexico City Airport Trust (Mexico), 3.88%, 04/30/2028(c) | 200,000 | 185,904 | ||||||
| ||||||||
Rutas 2 and 7 Finance Ltd. (Paraguay), 0.00%, 09/30/2036(c)(f) | 208,000 | 141,008 | ||||||
| ||||||||
421,734 | ||||||||
| ||||||||
Construction Machinery & Heavy Transportation |
| |||||||
Caterpillar Financial Services Corp., 5.15%, 08/11/2025(b) | 6,702,000 | 6,704,936 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
| ||||||||
Construction Machinery & Heavy Transportation Equipment– (continued) |
| |||||||
Cummins, Inc., | ||||||||
4.90%, 02/20/2029 | $ | 2,257,000 | $ | 2,248,359 | ||||
| ||||||||
5.15%, 02/20/2034(b) | 4,207,000 | 4,203,464 | ||||||
| ||||||||
5.45%, 02/20/2054(b) | 4,590,000 | 4,618,821 | ||||||
| ||||||||
17,775,580 | ||||||||
| ||||||||
Construction Materials–0.01% |
| |||||||
CEMEX S.A.B. de C.V. (Mexico), 9.13%(c)(d)(g) | 600,000 | 640,258 | ||||||
| ||||||||
Consumer Finance–0.52% | ||||||||
Capital One Financial Corp., | ||||||||
7.15%, 10/29/2027(b)(d) | 2,758,000 | 2,859,523 | ||||||
| ||||||||
6.31%, 06/08/2029(b)(d) | 2,536,000 | 2,597,357 | ||||||
| ||||||||
7.62%, 10/30/2031(d) | 100,000 | 109,501 | ||||||
| ||||||||
6.38%, 06/08/2034(d) | 2,275,000 | 2,345,509 | ||||||
| ||||||||
FirstCash, Inc., 6.88%, 03/01/2032(c) | 17,498,000 | 17,346,967 | ||||||
| ||||||||
General Motors Financial Co., Inc., 5.40%, 04/06/2026 | 481,000 | 481,349 | ||||||
| ||||||||
25,740,206 | ||||||||
| ||||||||
Consumer Staples Merchandise Retail–0.04% |
| |||||||
Dollar General Corp., 5.50%, 11/01/2052(b) | 835,000 | 791,865 | ||||||
| ||||||||
Target Corp., 4.80%, 01/15/2053(b) | 1,166,000 | 1,078,884 | ||||||
| ||||||||
1,870,749 | ||||||||
| ||||||||
Copper–0.00% | ||||||||
PT Freeport Indonesia (Indonesia), 4.76%, 04/14/2027(c) | 217,000 | 212,127 | ||||||
| ||||||||
Data Processing & Outsourced Services–0.08% |
| |||||||
Concentrix Corp., 6.85%, 08/02/2033 | 4,084,000 | 3,996,713 | ||||||
| ||||||||
Distillers & Vintners–0.01% | ||||||||
Constellation Brands, Inc., 4.90%, 05/01/2033(b) | 543,000 | 526,869 | ||||||
| ||||||||
Distributors–0.10% | ||||||||
Genuine Parts Co., 6.88%, 11/01/2033(b) | 4,406,000 | 4,816,432 | ||||||
| ||||||||
Diversified Banks–8.00% | ||||||||
Africa Finance Corp. (Supranational), | 20,285,000 | 19,504,027 | ||||||
| ||||||||
Australia and New Zealand Banking Group Ltd. (Australia), | ||||||||
6.74%, 12/08/2032(b)(c) | 1,660,000 | 1,764,457 | ||||||
| ||||||||
6.75%(c)(d)(g) | 1,458,000 | 1,465,170 | ||||||
| ||||||||
Banco Bilbao Vizcaya Argentaria S.A. (Spain), | ||||||||
7.88%, 11/15/2034(d) | 4,200,000 | 4,481,813 | ||||||
| ||||||||
9.38%(d)(g) | 4,048,000 | 4,281,731 | ||||||
| ||||||||
Banco de Bogota S.A. (Colombia), 4.38%, 08/03/2027(c) | 400,000 | 379,389 | ||||||
| ||||||||
Banco de Credito e Inversiones S.A. (Chile), 8.75%(c)(d)(g) | 430,000 | 442,094 | ||||||
|
Principal Amount | Value | |||||||
| ||||||||
Diversified Banks–(continued) | ||||||||
Banco GNB Sudameris S.A. (Colombia), 7.50%, 04/16/2031(c)(d) | $ | 200,000 | $ | 168,261 | ||||
| ||||||||
Banco Santander S.A. (Spain), | ||||||||
6.53%, 11/07/2027(b)(d) | 4,400,000 | 4,503,023 | ||||||
| ||||||||
9.63%(b)(d)(g) | 5,200,000 | 5,509,280 | ||||||
| ||||||||
9.63%(d)(g) | 8,200,000 | 8,802,438 | ||||||
| ||||||||
Bank Gospodarstwa Krajowego (Poland), | ||||||||
6.25%, 10/31/2028(c) | 550,000 | 572,221 | ||||||
| ||||||||
5.38%, 05/22/2033(c) | 200,000 | 198,177 | ||||||
| ||||||||
Bank of America Corp., | ||||||||
6.39% (SOFR + 1.05%), 02/04/2028(b)(h) | 1,428,000 | 1,431,577 | ||||||
| ||||||||
4.95%, 07/22/2028(d) | 837,000 | 828,903 | ||||||
| ||||||||
5.20%, 04/25/2029(d) | 4,462,000 | 4,439,587 | ||||||
| ||||||||
5.82%, 09/15/2029(b)(d) | 5,764,000 | 5,875,948 | ||||||
| ||||||||
5.02%, 07/22/2033(b)(d) | 61,000 | 59,478 | ||||||
| ||||||||
5.29%, 04/25/2034(d) | 2,125,000 | 2,095,662 | ||||||
| ||||||||
5.47%, 01/23/2035(b)(d) | 4,523,000 | 4,511,620 | ||||||
| ||||||||
Bank of Montreal (Canada), | 13,823,000 | 13,829,911 | ||||||
| ||||||||
Bank of Nova Scotia (The) (Canada), | ||||||||
8.63%, 10/27/2082(d) | 2,713,000 | 2,797,952 | ||||||
| ||||||||
8.00%, 01/27/2084(d) | 6,200,000 | 6,276,303 | ||||||
| ||||||||
Barclays PLC (United Kingdom), | 200,000 | 209,292 | ||||||
| ||||||||
BBVA Bancomer S.A. (Mexico), | ||||||||
8.45%, 06/29/2038(c)(d) | 300,000 | 316,957 | ||||||
| ||||||||
8.13%, 01/08/2039(b)(c)(d) | 5,046,000 | 5,233,888 | ||||||
| ||||||||
BPCE S.A. (France), | ||||||||
5.20%, 01/18/2027(b)(c) | 2,585,000 | 2,584,632 | ||||||
| ||||||||
5.72%, 01/18/2030(c)(d) | 2,868,000 | 2,857,734 | ||||||
| ||||||||
6.51%, 01/18/2035(c)(d) | 2,748,000 | 2,725,507 | ||||||
| ||||||||
Citigroup, Inc., | ||||||||
5.17%, 02/13/2030(b)(d) | 4,532,000 | 4,486,908 | ||||||
| ||||||||
6.17%, 05/25/2034(d) | 227,000 | 228,817 | ||||||
| ||||||||
5.83%, 02/13/2035(b)(d) | 12,345,000 | 12,082,472 | ||||||
| ||||||||
7.38%(b)(d)(g) | 10,951,000 | 11,226,210 | ||||||
| ||||||||
7.63%(b)(d)(g) | 10,256,000 | 10,601,555 | ||||||
| ||||||||
Series BB, 7.20%(d)(g) | 9,943,000 | 9,988,467 | ||||||
| ||||||||
Comerica, Inc., 5.98%, 01/30/2030(b)(d) | 46,000 | 45,184 | ||||||
| ||||||||
Credit Agricole S.A. (France), | ||||||||
5.34%, 01/10/2030(b)(c)(d) | 5,389,000 | 5,349,468 | ||||||
| ||||||||
6.25%, 01/10/2035(c)(d) | 4,153,000 | 4,153,967 | ||||||
| ||||||||
Credit Suisse AG (Switzerland), | 1,649,000 | 1,632,805 | ||||||
| ||||||||
Export-Import Bank of India (India), 3.38%, 08/05/2026(c) | 200,000 | 191,119 | ||||||
| ||||||||
Federation des caisses Desjardins du Quebec (Canada), | ||||||||
5.28%, 01/23/2026(c)(d) | 1,344,000 | 1,336,725 | ||||||
| ||||||||
4.55%, 08/23/2027(b)(c) | 2,209,000 | 2,168,752 | ||||||
| ||||||||
Fifth Third Bancorp, | ||||||||
2.38%, 01/28/2025 | 841,000 | 816,674 | ||||||
| ||||||||
1.71%, 11/01/2027(b)(d) | 866,000 | 777,903 | ||||||
| ||||||||
6.34%, 07/27/2029(b)(d) | 664,000 | 681,593 | ||||||
| ||||||||
4.77%, 07/28/2030(d) | 2,258,000 | 2,155,466 | ||||||
| ||||||||
5.63%, 01/29/2032(b)(d) | 1,220,000 | 1,209,905 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||
| ||||||
Diversified Banks–(continued) | ||||||
HSBC Holdings PLC (United Kingdom), | ||||||
5.89%, 08/14/2027(d) | $ | 3,729,000 | $ 3,754,489 | |||
| ||||||
5.21%, 08/11/2028(d) | 1,336,000 | 1,323,377 | ||||
| ||||||
7.40%, 11/13/2034(d) | 200,000 | 214,546 | ||||
| ||||||
6.33%, 03/09/2044(d) | 3,039,000 | 3,197,427 | ||||
| ||||||
Intesa Sanpaolo S.p.A. (Italy), | 5,149,000 | 5,569,947 | ||||
Israel Discount Bank Ltd. (Israel), | 400,000 | 390,878 | ||||
JPMorgan Chase & Co., | ||||||
4.85%, 07/25/2028(d) | 942,000 | 931,883 | ||||
| ||||||
5.30%, 07/24/2029(b)(d) | 3,630,000 | 3,640,660 | ||||
6.09%, 10/23/2029(d) | 4,513,000 | 4,666,634 | ||||
5.01%, 01/23/2030(b)(d) | 2,834,000 | 2,804,984 | ||||
5.72%, 09/14/2033(b)(d) | 2,325,000 | 2,354,921 | ||||
6.25%, 10/23/2034(d) | 6,955,000 | 7,380,660 | ||||
5.34%, 01/23/2035(b)(d) | 2,235,000 | 2,223,840 | ||||
Series W, 6.57% (3 mo. Term SOFR + 1.26%), 05/15/2047(h) | 803,000 | 707,462 | ||||
KeyBank N.A., | ||||||
3.30%, 06/01/2025 | 1,550,000 | 1,492,533 | ||||
4.15%, 08/08/2025(b) | 1,336,000 | 1,294,240 | ||||
5.85%, 11/15/2027(b) | 1,584,000 | 1,564,943 | ||||
KeyCorp, | ||||||
3.88%, 05/23/2025(b)(d) | 1,534,000 | 1,518,559 | ||||
2.55%, 10/01/2029 | 784,000 | 656,144 | ||||
Magyar Export-Import Bank Zartkoruen Mukodo Reszvenytarsasag (Hungary), | 325,000 | 326,922 | ||||
Manufacturers & Traders Trust Co., | ||||||
2.90%, 02/06/2025(b) | 1,957,000 | 1,902,451 | ||||
4.70%, 01/27/2028 | 1,843,000 | 1,773,546 | ||||
Mitsubishi UFJ Financial Group, Inc. (Japan), | ||||||
5.41%, 04/19/2034(b)(d) | 1,298,000 | 1,313,131 | ||||
8.20%(b)(d)(g) | 9,604,000 | 10,331,244 | ||||
Mizuho Financial Group, Inc. (Japan), 5.78%, | 1,612,000 | 1,643,363 | ||||
Morgan Stanley Bank N.A., | ||||||
5.88%, 10/30/2026 | 5,349,000 | 5,448,546 | ||||
4.95%, 01/14/2028(d) | 1,502,000 | 1,494,864 | ||||
Multibank, Inc. (Panama), | 5,134,000 | 5,221,509 | ||||
National Securities Clearing Corp., | ||||||
5.10%, 11/21/2027(c) | 2,521,000 | 2,539,073 | ||||
5.00%, 05/30/2028(b)(c) | 1,766,000 | 1,779,409 | ||||
PNC Financial Services Group, Inc. (The), | ||||||
6.62%, 10/20/2027(d) | 4,724,000 | 4,853,749 | ||||
5.58%, 06/12/2029(b)(d) | 4,108,000 | 4,132,184 | ||||
6.04%, 10/28/2033(d) | 1,238,000 | 1,270,896 | ||||
5.07%, 01/24/2034(d) | 1,433,000 | 1,378,452 | ||||
6.88%, 10/20/2034(d) | 3,909,000 | 4,236,756 | ||||
Series V, 6.20%(d)(g) | 2,176,000 | 2,146,504 | ||||
Series W, 6.25%(d)(g) | 3,306,000 | 3,128,537 |
Principal Amount | Value | |||||||
| ||||||||
Diversified Banks–(continued) |
| |||||||
Royal Bank of Canada (Canada), | ||||||||
6.06% (SOFR + 0.71%), 01/21/2027(b)(h) | $ | 923,000 | $ | 924,746 | ||||
4.95%, 02/01/2029(b) | 1,904,000 | 1,891,373 | ||||||
Societe Generale S.A. (France), | ||||||||
6.07%, 01/19/2035(b)(c)(d) | 2,434,000 | 2,400,890 | ||||||
7.13%, 01/19/2055(c)(d) | 2,266,000 | 2,202,902 | ||||||
Standard Chartered PLC (United Kingdom), | ||||||||
6.19%, 07/06/2027(c)(d) | 1,555,000 | 1,570,804 | ||||||
6.75%, 02/08/2028(c)(d) | 2,422,000 | 2,482,354 | ||||||
7.02%, 02/08/2030(c)(d) | 2,444,000 | 2,571,013 | ||||||
2.68%, 06/29/2032(c)(d) | 3,298,000 | 2,682,181 | ||||||
6.10%, 01/11/2035(c)(d) | 3,657,000 | 3,689,438 | ||||||
7.75%(c)(d)(g) | 9,256,000 | 9,348,801 | ||||||
Sumitomo Mitsui Financial Group, Inc. (Japan), | ||||||||
5.81%, 09/14/2033(b) | 4,367,000 | 4,528,431 | ||||||
6.60%(d)(g) | 11,527,000 | 11,505,740 | ||||||
Sumitomo Mitsui Trust Bank Ltd. (Japan), | ||||||||
5.65%, 03/09/2026(b)(c) | 1,369,000 | 1,378,644 | ||||||
5.65%, 09/14/2026(c) | 1,986,000 | 2,003,318 | ||||||
5.55%, 09/14/2028(b)(c) | 3,592,000 | 3,659,848 | ||||||
5.20%, 03/07/2029(c) | 7,624,000 | 7,646,055 | ||||||
5.35%, 03/07/2034(c) | 5,383,000 | 5,425,879 | ||||||
Synovus Bank, 5.63%, 02/15/2028(b) | 2,031,000 | 1,962,783 | ||||||
Toronto-Dominion Bank | 2,470,000 | 2,576,850 | ||||||
Turkiye Ihracat Kredi Bankasi A.S. (Turkey), 7.50%, 02/06/2028(c) | 300,000 | 300,045 | ||||||
U.S. Bancorp, | ||||||||
5.78%, 06/12/2029(b)(d) | 3,154,000 | 3,188,092 | ||||||
5.38%, 01/23/2030(b)(d) | 5,441,000 | 5,413,336 | ||||||
4.97%, 07/22/2033(d) | 763,000 | 713,411 | ||||||
4.84%, 02/01/2034(b)(d) | 2,989,000 | 2,814,318 | ||||||
5.84%, 06/12/2034(b)(d) | 153,000 | 154,578 | ||||||
5.68%, 01/23/2035(b)(d) | 3,502,000 | 3,495,832 | ||||||
UBS AG (Switzerland), 5.65%, 09/11/2028(b) | 2,396,000 | 2,442,418 | ||||||
Wells Fargo & Co., | ||||||||
4.81%, 07/25/2028(d) | 542,000 | 532,423 | ||||||
5.57%, 07/25/2029(d) | 2,500,000 | 2,517,443 | ||||||
6.30%, 10/23/2029(b)(d) | 3,098,000 | 3,212,280 | ||||||
5.20%, 01/23/2030(b)(d) | 3,167,000 | 3,141,083 | ||||||
5.39%, 04/24/2034(d) | 70,000 | 68,872 | ||||||
5.56%, 07/25/2034(d) | 6,572,000 | 6,548,977 | ||||||
6.49%, 10/23/2034(d) | 8,112,000 | 8,630,291 | ||||||
5.50%, 01/23/2035(b)(d) | 4,297,000 | 4,270,228 | ||||||
7.63%(b)(d)(g) | 2,848,000 | 3,020,671 | ||||||
398,806,633 | ||||||||
Diversified Capital Markets–0.53% |
| |||||||
Credit Suisse Group AG (Switzerland), | ||||||||
4.50%(c)(d)(e)(g) | 5,650,000 | 692,125 | ||||||
5.25%(c)(d)(e)(g) | 3,522,000 | 431,445 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Diversified Capital Markets–(continued) |
| |||||||
UBS Group AG (Switzerland), | ||||||||
5.43%, 02/08/2030(b)(c)(d) | $ | 1,916,000 | $ | 1,904,096 | ||||
| ||||||||
6.30%, 09/22/2034(c)(d) | 3,536,000 | 3,657,856 | ||||||
| ||||||||
5.70%, 02/08/2035(b)(c)(d) | 2,266,000 | 2,242,588 | ||||||
| ||||||||
7.75%(c)(d)(g) | 9,507,000 | 9,533,401 | ||||||
| ||||||||
9.25%(b)(c)(d)(g) | 3,779,000 | 4,184,736 | ||||||
| ||||||||
9.25%(c)(d)(g) | 3,336,000 | 3,569,854 | ||||||
| ||||||||
26,216,101 | ||||||||
| ||||||||
Diversified Chemicals–0.01% |
| |||||||
MEGlobal B.V. (Kuwait), 2.63%, 04/28/2028(c) | 200,000 | 178,069 | ||||||
| ||||||||
SABIC Capital II B.V. (Saudi Arabia), 4.50%, 10/10/2028(c) | 200,000 | 195,573 | ||||||
| ||||||||
373,642 | ||||||||
| ||||||||
Diversified Financial Services–0.64% |
| |||||||
Apollo Global Management, Inc., | 4,346,000 | 4,670,286 | ||||||
| ||||||||
BOC Aviation (USA) Corp. (China), 4.88%, 05/03/2033(c) | 310,000 | 302,783 | ||||||
| ||||||||
Corebridge Financial, Inc., | ||||||||
6.05%, 09/15/2033(c) | 3,430,000 | 3,505,349 | ||||||
| ||||||||
5.75%, 01/15/2034(b) | 5,433,000 | 5,423,917 | ||||||
| ||||||||
Gabon Blue Bond Master Trust, Series 2, 6.10%, 08/01/2038(c) | 8,770,000 | 8,690,437 | ||||||
| ||||||||
OPEC Fund for International Development (The) (Supranational), 4.50%, 01/26/2026(c) | 9,425,000 | 9,316,770 | ||||||
| ||||||||
Peru Enhanced Pass-Through Finance Ltd. (Peru), Class A-2, 0.00%, 06/02/2025(c)(f) | 26,030 | 24,750 | ||||||
| ||||||||
31,934,292 | ||||||||
| ||||||||
Diversified Metals & Mining–0.39% |
| |||||||
BHP Billiton Finance (USA) Ltd. (Australia), | ||||||||
5.10%, 09/08/2028 | 4,693,000 | 4,724,309 | ||||||
| ||||||||
5.25%, 09/08/2030(b) | 3,368,000 | 3,397,488 | ||||||
| ||||||||
5.25%, 09/08/2033 | 5,917,000 | 5,946,199 | ||||||
| ||||||||
5.50%, 09/08/2053 | 1,854,000 | 1,899,545 | ||||||
| ||||||||
Corp. Nacional del Cobre de Chile (Chile), 5.13%, 02/02/2033(c) | 3,583,000 | 3,363,087 | ||||||
| ||||||||
19,330,628 | ||||||||
| ||||||||
Diversified REITs–0.26% |
| |||||||
Trust Fibra Uno (Mexico), | ||||||||
5.25%, 12/15/2024(c) | 325,000 | 324,929 | ||||||
| ||||||||
5.25%, 01/30/2026(b)(c) | 7,067,000 | 6,891,940 | ||||||
| ||||||||
4.87%, 01/15/2030(c) | 3,434,000 | 3,127,648 | ||||||
| ||||||||
6.39%, 01/15/2050(c) | 3,343,000 | 2,814,675 | ||||||
| ||||||||
13,159,192 | ||||||||
| ||||||||
Diversified Support Services–0.20% |
| |||||||
Element Fleet Management Corp. (Canada), 6.32%, 12/04/2028(c) | 3,849,000 | 3,949,877 | ||||||
|
Principal Amount | Value | |||||||
Diversified Support Services–(continued) |
| |||||||
Ritchie Bros. Holdings, Inc. (Canada), | ||||||||
6.75%, 03/15/2028(c) | $ | 1,297,000 | $ | 1,329,036 | ||||
| ||||||||
7.75%, 03/15/2031(c) | 4,665,000 | 4,909,912 | ||||||
| ||||||||
10,188,825 | ||||||||
| ||||||||
Drug Retail–0.07% |
| |||||||
CK Hutchison International (23) Ltd. (United Kingdom), 4.88%, 04/21/2033(c) | 3,792,000 | 3,744,479 | ||||||
| ||||||||
Electric Utilities–3.67% |
| |||||||
Alabama Power Co., 5.85%, 11/15/2033 | 1,131,000 | 1,184,413 | ||||||
| ||||||||
Alexander Funding Trust II, | 2,214,000 | 2,318,687 | ||||||
| ||||||||
Alfa Desarrollo S.p.A. (Chile), | 198,752 | 147,896 | ||||||
| ||||||||
American Electric Power Co., Inc., | ||||||||
5.75%, 11/01/2027(b) | 904,000 | 923,067 | ||||||
| ||||||||
5.20%, 01/15/2029(b) | 3,958,000 | 3,956,276 | ||||||
| ||||||||
CenterPoint Energy Houston Electric LLC, | ||||||||
5.20%, 10/01/2028 | 1,722,000 | 1,737,945 | ||||||
| ||||||||
Series AJ, 4.85%, 10/01/2052 | 1,070,000 | 991,961 | ||||||
| ||||||||
Comision Federal de Electricidad (Mexico), 6.26%, 02/15/2052(c) | 600,000 | 521,561 | ||||||
| ||||||||
Consolidated Edison Co. of New York, Inc., | ||||||||
5.50%, 03/15/2034 | 2,070,000 | 2,115,693 | ||||||
| ||||||||
5.90%, 11/15/2053 | 2,894,000 | 3,055,351 | ||||||
| ||||||||
Constellation Energy Generation LLC, | ||||||||
6.13%, 01/15/2034(b) | 1,324,000 | 1,382,402 | ||||||
| ||||||||
6.50%, 10/01/2053 | 1,147,000 | 1,260,918 | ||||||
| ||||||||
Dominion Energy South Carolina, Inc., 6.25%, 10/15/2053 | 1,458,000 | 1,614,382 | ||||||
| ||||||||
Drax Finco PLC (United Kingdom), 6.63%, 11/01/2025(c) | 6,116,000 | 6,044,840 | ||||||
| ||||||||
Duke Energy Carolinas LLC, | 1,349,000 | 1,322,440 | ||||||
| ||||||||
Duke Energy Corp., | ||||||||
4.85%, 01/05/2029 | 3,795,000 | 3,733,496 | ||||||
| ||||||||
5.00%, 08/15/2052 | 1,100,000 | 981,407 | ||||||
| ||||||||
Duke Energy Indiana LLC, | 1,635,000 | 1,579,555 | ||||||
| ||||||||
Edison International, 7.88%, 06/15/2054(b)(d) | 6,883,000 | 7,034,034 | ||||||
| ||||||||
Electricidad Firme de Mexico Holdings S.A. de C.V. (Mexico), 4.90%, 11/20/2026(c) | 400,000 | 379,700 | ||||||
| ||||||||
Electricite de France S.A. (France), | ||||||||
5.70%, 05/23/2028(b)(c) | 1,488,000 | 1,515,774 | ||||||
| ||||||||
9.13%(b)(c)(d)(g) | 3,285,000 | 3,653,117 | ||||||
| ||||||||
Enel Finance International N.V. (Italy), 6.80%, 10/14/2025(c) | 1,266,000 | 1,291,056 | ||||||
| ||||||||
Evergy Metro, Inc., 4.95%, 04/15/2033 | 826,000 | 808,274 | ||||||
| ||||||||
Eversource Energy, 5.50%, 01/01/2034 | 3,251,000 | 3,219,708 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Electric Utilities–(continued) | ||||||||
Exelon Corp., | ||||||||
5.15%, 03/15/2029 | $ | 3,403,000 | $ | 3,390,066 | ||||
| ||||||||
5.45%, 03/15/2034(b) | 3,263,000 | 3,249,797 | ||||||
| ||||||||
5.60%, 03/15/2053 | 4,443,000 | 4,334,062 | ||||||
| ||||||||
Florida Power & Light Co., 4.80%, 05/15/2033 | 900,000 | 879,913 | ||||||
| ||||||||
Georgia Power Co., 4.95%, 05/17/2033(b) | 1,152,000 | 1,128,409 | ||||||
| ||||||||
Greenko Power II Ltd. (India), 4.30%, 12/13/2028(c) | 180,000 | 165,375 | ||||||
| ||||||||
Kallpa Generacion S.A. (Peru), 4.13%, 08/16/2027(c) | 200,000 | 188,886 | ||||||
| ||||||||
Mercury Chile Holdco LLC (Chile), 6.50%, 01/24/2027(c) | 4,899,000 | 4,581,120 | ||||||
| ||||||||
Metropolitan Edison Co., 5.20%, 04/01/2028(c) | 678,000 | 676,984 | ||||||
| ||||||||
MidAmerican Energy Co., | ||||||||
5.35%, 01/15/2034(b) | 903,000 | 921,288 | ||||||
| ||||||||
5.85%, 09/15/2054 | 1,620,000 | 1,708,950 | ||||||
| ||||||||
5.30%, 02/01/2055 | 3,434,000 | 3,342,560 | ||||||
| ||||||||
MVM Energetika Zrt (Hungary), 7.50%, 06/09/2028(c) | 200,000 | 207,260 | ||||||
| ||||||||
National Rural Utilities Cooperative Finance Corp., | ||||||||
4.85%, 02/07/2029 | 5,759,000 | 5,708,930 | ||||||
| ||||||||
5.00%, 02/07/2031 | 5,387,000 | 5,312,476 | ||||||
| ||||||||
5.80%, 01/15/2033 | 715,000 | 739,976 | ||||||
| ||||||||
7.13%, 09/15/2053(d) | 18,921,000 | 19,609,384 | ||||||
| ||||||||
NextEra Energy Capital Holdings, Inc., | ||||||||
6.05%, 03/01/2025 | 1,531,000 | 1,536,801 | ||||||
| ||||||||
4.90%, 03/15/2029 | 8,695,000 | 8,592,677 | ||||||
| ||||||||
5.25%, 03/15/2034(b) | 8,491,000 | 8,336,171 | ||||||
| ||||||||
5.55%, 03/15/2054(b) | 8,754,000 | 8,499,338 | ||||||
| ||||||||
Niagara Mohawk Power Corp., | ||||||||
5.29%, 01/17/2034(c) | 3,785,000 | 3,695,981 | ||||||
| ||||||||
5.66%, 01/17/2054(c) | 1,589,000 | 1,545,489 | ||||||
| ||||||||
Oklahoma Gas and Electric Co., | 753,000 | 761,618 | ||||||
| ||||||||
Oncor Electric Delivery Co. LLC, | 3,283,000 | 3,393,759 | ||||||
| ||||||||
PacifiCorp, | ||||||||
5.10%, 02/15/2029(b) | 3,754,000 | 3,744,297 | ||||||
| ||||||||
5.30%, 02/15/2031(b) | 3,924,000 | 3,884,482 | ||||||
| ||||||||
5.45%, 02/15/2034(b) | 4,764,000 | 4,698,478 | ||||||
| ||||||||
5.80%, 01/15/2055(b) | 3,635,000 | 3,516,533 | ||||||
| ||||||||
PT Perusahaan Perseroan (Persero) Perusahaan Listrik Negara (Indonesia), | ||||||||
5.45%, 05/21/2028(c) | 200,000 | 199,086 | ||||||
| ||||||||
3.38%, 02/05/2030(c) | 200,000 | 177,982 | ||||||
| ||||||||
Public Service Co. of Colorado, | 1,250,000 | 1,183,682 | ||||||
| ||||||||
Public Service Co. of New Hampshire, 5.35%, 10/01/2033 | 1,459,000 | 1,478,213 | ||||||
| ||||||||
Public Service Electric and Gas Co., 5.13%, 03/15/2053(b) | 797,000 | 771,766 | ||||||
| ||||||||
San Diego Gas & Electric Co., | 3,066,000 | 2,978,931 | ||||||
| ||||||||
Sierra Pacific Power Co., | 1,090,000 | 1,117,557 | ||||||
|
Principal Amount | Value | |||||||
Electric Utilities–(continued) | ||||||||
Southern Co. (The), 5.70%, 10/15/2032 | $ | 742,000 | $ | 760,064 | ||||
| ||||||||
Southwestern Electric Power Co., 5.30%, 04/01/2033(b) | 1,043,000 | 1,029,748 | ||||||
| ||||||||
Virginia Electric & Power Co., | ||||||||
5.00%, 04/01/2033 | 1,129,000 | 1,107,078 | ||||||
| ||||||||
5.35%, 01/15/2054(b) | 2,787,000 | 2,685,844 | ||||||
| ||||||||
Vistra Operations Co. LLC, | ||||||||
7.75%, 10/15/2031(c) | 5,017,000 | 5,193,884 | ||||||
| ||||||||
6.95%, 10/15/2033(c) | 2,931,000 | 3,056,330 | ||||||
| ||||||||
182,865,178 | ||||||||
| ||||||||
Electrical Components & Equipment–0.23% |
| |||||||
Regal Rexnord Corp., | ||||||||
6.05%, 04/15/2028(c) | 77,000 | 77,506 | ||||||
| ||||||||
6.30%, 02/15/2030(c) | 840,000 | 855,772 | ||||||
| ||||||||
6.40%, 04/15/2033(b)(c) | 1,236,000 | 1,269,782 | ||||||
| ||||||||
Sensata Technologies B.V., | 2,099,000 | 2,046,213 | ||||||
| ||||||||
Sociedad Quimica y Minera de Chile S.A. (Chile), 6.50%, 11/07/2033(c) | 6,809,000 | 7,024,573 | ||||||
| ||||||||
11,273,846 | ||||||||
| ||||||||
Electronic Manufacturing Services–0.25% |
| |||||||
EMRLD Borrower L.P./Emerald Co-Issuer, Inc., 6.63%, | 12,229,000 | 12,287,088 | ||||||
| ||||||||
Environmental & Facilities Services–0.45% |
| |||||||
Ambipar Lux S.a.r.l. (Brazil), | 310,000 | 308,273 | ||||||
| ||||||||
Clean Harbors, Inc., 6.38%, 02/01/2031(b)(c) | 3,452,000 | 3,434,220 | ||||||
| ||||||||
Republic Services, Inc., | ||||||||
4.88%, 04/01/2029(b) | 4,320,000 | 4,305,750 | ||||||
| ||||||||
5.00%, 12/15/2033(b) | 3,760,000 | 3,701,501 | ||||||
| ||||||||
5.00%, 04/01/2034(b) | 753,000 | 741,720 | ||||||
| ||||||||
Veralto Corp., | ||||||||
5.50%, 09/18/2026(c) | 3,323,000 | 3,338,632 | ||||||
| ||||||||
5.35%, 09/18/2028(b)(c) | 4,251,000 | 4,282,842 | ||||||
| ||||||||
5.45%, 09/18/2033(b)(c) | 2,406,000 | 2,418,293 | ||||||
| ||||||||
22,531,231 | ||||||||
| ||||||||
Financial Exchanges & Data–0.14% |
| |||||||
B3 S.A. - Brasil, Bolsa, Balcao (Brazil), 4.13%, 09/20/2031(c) | 268,000 | 234,034 | ||||||
| ||||||||
Intercontinental Exchange, Inc., | ||||||||
4.95%, 06/15/2052 | 752,000 | 707,408 | ||||||
| ||||||||
5.20%, 06/15/2062 | 1,644,000 | 1,582,501 | ||||||
| ||||||||
Nasdaq, Inc., | ||||||||
5.35%, 06/28/2028(b) | 860,000 | 869,167 | ||||||
| ||||||||
5.55%, 02/15/2034(b) | 1,348,000 | 1,358,072 | ||||||
| ||||||||
5.95%, 08/15/2053(b) | 595,000 | 612,779 | ||||||
| ||||||||
6.10%, 06/28/2063 | 1,347,000 | 1,406,977 | ||||||
| ||||||||
6,770,938 | ||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Food Retail–0.13% |
| |||||||
Alimentation Couche-Tard, Inc. (Canada), | ||||||||
5.27%, 02/12/2034(b)(c) | $ | 4,775,000 | $ | 4,734,335 | ||||
| ||||||||
5.62%, 02/12/2054(b)(c) | 1,755,000 | 1,750,616 | ||||||
| ||||||||
6,484,951 | ||||||||
| ||||||||
Forest Products–0.01% |
| |||||||
Celulosa Arauco y Constitucion S.A. (Chile), | ||||||||
4.50%, 08/01/2024 | 500,000 | 495,919 | ||||||
| ||||||||
5.15%, 01/29/2050(c) | 200,000 | 162,371 | ||||||
| ||||||||
658,290 | ||||||||
| ||||||||
Gas Utilities–0.16% |
| |||||||
Atmos Energy Corp., | ||||||||
5.90%, 11/15/2033(b) | 1,609,000 | 1,693,083 | ||||||
| ||||||||
6.20%, 11/15/2053(b) | 1,244,000 | 1,378,168 | ||||||
| ||||||||
Infraestructura Energetica Nova, S.A.P.I. de C.V. (Mexico), 4.88%, 01/14/2048(c) | 400,000 | 307,262 | ||||||
| ||||||||
Piedmont Natural Gas Co., Inc., 5.40%, 06/15/2033(b) | 1,789,000 | 1,794,197 | ||||||
| ||||||||
Promigas S.A. ESP/Gases del Pacifico SAC (Colombia), 3.75%, 10/16/2029(c) | 400,000 | 349,000 | ||||||
| ||||||||
Southern Co. Gas Capital Corp., 5.75%, 09/15/2033(b) | 1,441,000 | 1,477,272 | ||||||
| ||||||||
Southwest Gas Corp., 5.45%, 03/23/2028 | 860,000 | 868,523 | ||||||
| ||||||||
7,867,505 | ||||||||
| ||||||||
Gold–0.00% |
| |||||||
Endeavour Mining PLC (Burkina Faso), 5.00%, 10/14/2026(c) | 200,000 | 187,453 | ||||||
| ||||||||
Health Care Distributors–0.13% |
| |||||||
Cardinal Health, Inc., 5.45%, 02/15/2034 | 3,391,000 | 3,393,925 | ||||||
| ||||||||
Cencora, Inc., 5.13%, 02/15/2034 | 2,983,000 | 2,929,620 | ||||||
| ||||||||
6,323,545 | ||||||||
Health Care Facilities–0.11% |
| |||||||
HCA, Inc., 5.90%, 06/01/2053 | 2,671,000 | 2,626,186 | ||||||
| ||||||||
UPMC, | ||||||||
5.04%, 05/15/2033 | 2,168,000 | 2,141,655 | ||||||
| ||||||||
5.38%, 05/15/2043 | 883,000 | 893,680 | ||||||
| ||||||||
5,661,521 | ||||||||
| ||||||||
Health Care Services–0.25% |
| |||||||
CVS Health Corp., |
| |||||||
5.00%, 01/30/2029(b) | 1,963,000 | 1,957,687 | ||||||
| ||||||||
5.25%, 01/30/2031(b) | 260,000 | 259,805 | ||||||
| ||||||||
5.30%, 06/01/2033(b) | 2,087,000 | 2,072,825 | ||||||
| ||||||||
6.00%, 06/01/2063(b) | 985,000 | 987,458 | ||||||
| ||||||||
Piedmont Healthcare, Inc., | ||||||||
Series 2032, 2.04%, 01/01/2032 | 386,000 | 311,652 | ||||||
| ||||||||
Series 2042, 2.72%, 01/01/2042 | 1,414,000 | 1,000,533 | ||||||
| ||||||||
2.86%, 01/01/2052 | 1,910,000 | 1,225,980 | ||||||
|
Principal Amount | Value | |||||||
Health Care Services–(continued) |
| |||||||
Providence St. Joseph Health Obligated Group, Series 21-A, 2.70%, 10/01/2051 | $ | 3,272,000 | $ | 1,974,862 | ||||
| ||||||||
Quest Diagnostics, Inc., 6.40%, 11/30/2033(b) | 2,612,000 | 2,791,585 | ||||||
| ||||||||
12,582,387 | ||||||||
| ||||||||
Health Care Supplies–1.27% |
| |||||||
Solventum Corp., | ||||||||
5.45%, 02/25/2027(b)(c) | 6,711,000 | 6,724,933 | ||||||
| ||||||||
5.40%, 03/01/2029(c) | 19,926,000 | 19,900,230 | ||||||
| ||||||||
5.60%, 03/23/2034(c) | 16,563,000 | 16,464,825 | ||||||
| ||||||||
5.90%, 04/30/2054(b)(c) | 12,685,000 | 12,423,311 | ||||||
| ||||||||
6.00%, 05/15/2064(c) | 7,918,000 | 7,696,319 | ||||||
| ||||||||
63,209,618 | ||||||||
| ||||||||
Highways & Railtracks–0.02% |
| |||||||
TransJamaican Highway Ltd. (Jamaica), 5.75%, 10/10/2036(c) | 1,223,931 | 1,079,354 | ||||||
| ||||||||
Home Improvement Retail–0.16% |
| |||||||
Home Depot, Inc. (The), 4.90%, 04/15/2029(b) | 4,404,000 | 4,423,114 | ||||||
| ||||||||
Lowe’s Cos., Inc., | ||||||||
5.00%, 04/15/2033(b) | 1,710,000 | 1,687,608 | ||||||
| ||||||||
5.75%, 07/01/2053 | 609,000 | 615,864 | ||||||
| ||||||||
5.80%, 09/15/2062 | 614,000 | 613,490 | ||||||
| ||||||||
5.85%, 04/01/2063 | 874,000 | 882,799 | ||||||
| ||||||||
8,222,875 | ||||||||
| ||||||||
Hotel & Resort REITs–0.01% |
| |||||||
Service Properties Trust, 4.95%, 02/15/2027(b) | 565,000 | 519,370 | ||||||
| ||||||||
Hotels, Resorts & Cruise Lines–0.18% |
| |||||||
Carnival Corp., 7.00%, 08/15/2029(c) | 1,799,000 | 1,867,412 | ||||||
| ||||||||
Marriott International, Inc., | ||||||||
4.88%, 05/15/2029 | 1,913,000 | 1,888,259 | ||||||
| ||||||||
5.30%, 05/15/2034 | 3,204,000 | 3,154,729 | ||||||
| ||||||||
Royal Caribbean Cruises Ltd., 6.25%, 03/15/2032(c) | 2,178,000 | 2,185,179 | ||||||
| ||||||||
9,095,579 | ||||||||
| ||||||||
Independent Power Producers & Energy Traders–0.51% |
| |||||||
AES Panama Generation Holdings S.R.L. (Panama), 4.38%, 05/31/2030(c) | 196,419 | 165,023 | ||||||
| ||||||||
Colbun S.A. (Chile), 3.95%, 10/11/2027(c) | 200,000 | 190,715 | ||||||
| ||||||||
Emirates SembCorp Water & Power Co. PJSC (United Arab Emirates), 4.45%, 08/01/2035(c) | 200,000 | 187,500 | ||||||
| ||||||||
EnfraGen Energia Sur S.A./EnfraGen Spain S.A./Prime Energia S.p.A. (Colombia), | ||||||||
5.38%, 12/30/2030(c) | 650,000 | 522,947 | ||||||
| ||||||||
5.38%, 12/30/2030(c) | 8,656,000 | 6,964,044 | ||||||
| ||||||||
Vistra Corp., | ||||||||
7.00%(b)(c)(d)(g) | 4,491,000 | 4,350,387 | ||||||
| ||||||||
Series C, 8.88%(c)(d)(g) | 12,846,000 | 13,099,385 | ||||||
| ||||||||
25,480,001 | ||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
| ||||||||
Industrial Conglomerates–1.06% |
| |||||||
Bidvest Group (UK) PLC (The) (South Africa), 3.63%, 09/23/2026(c) | $ | 3,306,000 | $ | 3,091,490 | ||||
| ||||||||
Honeywell International, Inc., | ||||||||
4.88%, 09/01/2029 | 7,284,000 | 7,290,664 | ||||||
| ||||||||
4.95%, 09/01/2031 | 8,906,000 | 8,891,555 | ||||||
| ||||||||
5.00%, 02/15/2033(b) | 980,000 | 982,100 | ||||||
| ||||||||
5.00%, 03/01/2035 | 7,286,000 | 7,267,800 | ||||||
| ||||||||
5.25%, 03/01/2054 | 14,572,000 | 14,555,044 | ||||||
| ||||||||
5.35%, 03/01/2064 | 10,920,000 | 10,917,396 | ||||||
| ||||||||
52,996,049 | ||||||||
| ||||||||
Industrial Machinery & Supplies & Components–0.15% |
| |||||||
Ingersoll Rand, Inc., | ||||||||
5.40%, 08/14/2028 | 590,000 | 595,186 | ||||||
| ||||||||
5.70%, 08/14/2033(b) | 2,259,000 | 2,298,979 | ||||||
| ||||||||
Nordson Corp., | ||||||||
5.60%, 09/15/2028 | 924,000 | 940,017 | ||||||
| ||||||||
5.80%, 09/15/2033 | 1,665,000 | 1,719,968 | ||||||
| ||||||||
nVent Finance S.a.r.l. (United Kingdom), | 2,200,000 | 2,201,559 | ||||||
| ||||||||
7,755,709 | ||||||||
| ||||||||
Industrial REITs–0.46% |
| |||||||
Cibanco S.A. Ibm/PLA Administradora Industrial S de RL de C.V. (Mexico), | 200,000 | 192,330 | ||||||
| ||||||||
LXP Industrial Trust, 6.75%, 11/15/2028(b) | 1,662,000 | 1,717,350 | ||||||
| ||||||||
Prologis L.P., | ||||||||
4.88%, 06/15/2028(b) | 1,788,000 | 1,786,661 | ||||||
| ||||||||
5.13%, 01/15/2034 | 1,722,000 | 1,705,767 | ||||||
| ||||||||
5.00%, 03/15/2034(b) | 10,817,000 | 10,636,777 | ||||||
| ||||||||
5.25%, 06/15/2053(b) | 4,022,000 | 3,903,338 | ||||||
| ||||||||
5.25%, 03/15/2054 | 3,040,000 | 2,923,339 | ||||||
| ||||||||
22,865,562 | ||||||||
| ||||||||
Insurance Brokers–0.22% | ||||||||
Arthur J. Gallagher & Co., | 2,254,000 | 2,545,124 | ||||||
| ||||||||
AssuredPartners, Inc., | 1,564,000 | 1,537,967 | ||||||
| ||||||||
Marsh & McLennan Cos., Inc., | ||||||||
5.40%, 09/15/2033(b) | 3,093,000 | 3,150,212 | ||||||
| ||||||||
5.45%, 03/15/2053 | 792,000 | 789,892 | ||||||
| ||||||||
5.70%, 09/15/2053(b) | 2,763,000 | 2,854,310 | ||||||
| ||||||||
10,877,505 | ||||||||
| ||||||||
Integrated Oil & Gas–0.57% |
| |||||||
BP Capital Markets America, Inc., 4.81%, 02/13/2033 | 1,233,000 | 1,203,328 | ||||||
| ||||||||
Ecopetrol S.A. (Colombia), | ||||||||
4.63%, 11/02/2031 | 136,000 | 112,661 | ||||||
| ||||||||
8.38%, 01/19/2036 | 9,544,000 | 9,588,141 | ||||||
| ||||||||
Empresa Nacional del Petroleo (Chile), 6.15%, 05/10/2033(c) | 600,000 | 599,251 | ||||||
| ||||||||
Occidental Petroleum Corp., | ||||||||
6.45%, 09/15/2036 | 3,843,000 | 4,049,119 | ||||||
| ||||||||
4.63%, 06/15/2045 | 1,894,000 | 1,530,267 | ||||||
|
Principal Amount | Value | |||||||
| ||||||||
Integrated Oil & Gas–(continued) |
| |||||||
Petroleos Mexicanos (Mexico), | ||||||||
8.75%, 06/02/2029(b) | $ | 5,958,930 | $ | 5,705,887 | ||||
| ||||||||
6.70%, 02/16/2032 | 4,851,000 | 3,914,761 | ||||||
| ||||||||
10.00%, 02/07/2033(b) | 1,415,000 | 1,375,139 | ||||||
| ||||||||
Saudi Arabian Oil Co. (Saudi Arabia), 3.50%, 04/16/2029(c) | 200,000 | 185,909 | ||||||
| ||||||||
28,264,463 | ||||||||
| ||||||||
Integrated Telecommunication Services–0.40% |
| |||||||
AT&T, Inc., 5.40%, 02/15/2034(b) | 2,483,000 | 2,487,227 | ||||||
| ||||||||
British Telecommunications PLC (United Kingdom), 4.25%, 11/23/2081(c)(d) | 10,020,000 | 9,394,590 | ||||||
| ||||||||
IHS Holding Ltd. (Nigeria), | ||||||||
5.63%, 11/29/2026(c) | 4,630,000 | 4,069,261 | ||||||
| ||||||||
6.25%, 11/29/2028(c) | 3,440,000 | 2,815,943 | ||||||
| ||||||||
Sitios Latinoamerica S.A.B. de C.V. (Brazil), 5.38%, 04/04/2032(c) | 1,532,000 | 1,413,806 | ||||||
| ||||||||
20,180,827 | ||||||||
| ||||||||
Interactive Media & Services–0.07% |
| |||||||
Globo Comunicacao e Participacoes S.A. (Brazil), 5.50%, 01/14/2032(c) | 300,000 | 260,796 | ||||||
| ||||||||
Meta Platforms, Inc., 5.75%, 05/15/2063(b) | 2,718,000 | 2,847,791 | ||||||
| ||||||||
Weibo Corp. (China), 3.38%, 07/08/2030 | 200,000 | 171,803 | ||||||
| ||||||||
3,280,390 | ||||||||
| ||||||||
Investment Banking & Brokerage–1.44% |
| |||||||
Brookfield Finance, Inc. | 3,284,000 | 3,313,644 | ||||||
| ||||||||
Charles Schwab Corp. (The), | ||||||||
5.64%, 05/19/2029(b)(d) | 2,412,000 | 2,443,615 | ||||||
| ||||||||
6.20%, 11/17/2029(b)(d) | 4,487,000 | 4,634,882 | ||||||
| ||||||||
5.85%, 05/19/2034(b)(d) | 2,410,000 | 2,448,573 | ||||||
| ||||||||
6.14%, 08/24/2034(b)(d) | 5,780,000 | 5,992,133 | ||||||
| ||||||||
Series K, 5.00%(b)(d)(g) | 1,065,000 | 985,144 | ||||||
| ||||||||
Goldman Sachs Group, Inc. (The), | ||||||||
6.14% (SOFR + 0.79%), 12/09/2026(h) | 1,674,000 | 1,676,150 | ||||||
| ||||||||
Series V, 4.13%(b)(d)(g) | 2,879,000 | 2,632,882 | ||||||
| ||||||||
Series W, 7.50%(b)(d)(g) | 15,301,000 | 16,127,618 | ||||||
| ||||||||
GTCR W-2 Merger Sub LLC, 7.50%, 01/15/2031(b)(c) | 4,592,000 | 4,793,221 | ||||||
| ||||||||
Morgan Stanley, | ||||||||
5.12%, 02/01/2029(d) | 820,000 | 814,889 | ||||||
| ||||||||
5.16%, 04/20/2029(d) | 2,843,000 | 2,827,721 | ||||||
| ||||||||
5.45%, 07/20/2029(d) | 1,334,000 | 1,339,700 | ||||||
| ||||||||
6.41%, 11/01/2029(d) | 3,787,000 | 3,954,678 | ||||||
| ||||||||
5.17%, 01/16/2030(b)(d) | 3,080,000 | 3,061,873 | ||||||
| ||||||||
5.25%, 04/21/2034(d) | 252,000 | 247,439 | ||||||
| ||||||||
5.42%, 07/21/2034(d) | 2,897,000 | 2,880,918 | ||||||
| ||||||||
5.47%, 01/18/2035(b)(d) | 3,236,000 | 3,233,413 | ||||||
| ||||||||
5.95%, 01/19/2038(b)(d) | 701,000 | 699,478 | ||||||
| ||||||||
5.94%, 02/07/2039(b)(d) | 7,707,000 | 7,591,894 | ||||||
| ||||||||
71,699,865 | ||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
Leisure Products–0.14% |
| |||||||
Brunswick Corp., 5.10%, 04/01/2052 | $ | 1,089,000 | $ | 861,337 | ||||
| ||||||||
Polaris, Inc., 6.95%, 03/15/2029 | 5,663,000 | 5,971,399 | ||||||
| ||||||||
6,832,736 | ||||||||
| ||||||||
Life & Health Insurance–2.12% |
| |||||||
Athene Global Funding, 5.58%, 01/09/2029(b)(c) | 7,664,000 | 7,644,749 | ||||||
| ||||||||
Corebridge Global Funding, | ||||||||
5.90%, 09/19/2028(c) | 2,488,000 | 2,538,563 | ||||||
| ||||||||
5.20%, 01/12/2029(b)(c) | 6,154,000 | 6,091,906 | ||||||
| ||||||||
Delaware Life Global Funding, | ||||||||
Series 22-1, 3.31%, | 11,863,000 | 11,388,955 | ||||||
| ||||||||
Series 21-1, 2.66%, 06/29/2026(c) | 31,380,000 | 29,130,722 | ||||||
| ||||||||
F&G Annuities & Life, Inc., | 1,755,000 | 1,804,991 | ||||||
| ||||||||
GA Global Funding Trust, | 6,775,000 | 6,698,958 | ||||||
| ||||||||
MAG Mutual Holding Co., | 27,101,000 | 23,437,487 | ||||||
| ||||||||
MetLife, Inc., 5.25%, | 2,422,000 | 2,343,591 | ||||||
| ||||||||
Pacific Life Global Funding II, | 4,332,000 | 4,343,055 | ||||||
| ||||||||
Principal Financial Group, Inc., 5.38%, 03/15/2033 | 1,864,000 | 1,880,502 | ||||||
| ||||||||
Sumitomo Life Insurance Co. | 8,640,000 | 8,556,795 | ||||||
| ||||||||
105,860,274 | ||||||||
| ||||||||
Managed Health Care–0.31% |
| |||||||
Humana, Inc., | ||||||||
5.75%, 12/01/2028 | 1,819,000 | 1,858,600 | ||||||
| ||||||||
5.95%, 03/15/2034(b) | 5,457,000 | 5,644,620 | ||||||
| ||||||||
Kaiser Foundation Hospitals, | ||||||||
Series 2021, 2.81%, 06/01/2041 | 182,000 | 133,048 | ||||||
| ||||||||
3.00%, 06/01/2051 | 126,000 | 86,467 | ||||||
UnitedHealth Group, Inc., |
| |||||||
5.25%, 02/15/2028(b) | 1,359,000 | 1,382,196 | ||||||
| ||||||||
5.30%, 02/15/2030(b) | 2,312,000 | 2,357,359 | ||||||
| ||||||||
5.35%, 02/15/2033(b) | 1,987,000 | 2,028,031 | ||||||
| ||||||||
5.05%, 04/15/2053 | 1,112,000 | 1,058,735 | ||||||
| ||||||||
5.20%, 04/15/2063(b) | 923,000 | 880,951 | ||||||
| ||||||||
15,430,007 | ||||||||
| ||||||||
Marine Ports & Services–0.00% |
| |||||||
DP World Ltd. (United Arab Emirates), 6.85%, 07/02/2037(c) | 200,000 | 216,472 | ||||||
| ||||||||
Marine Transportation–0.35% |
| |||||||
A.P. Moller - Maersk A/S (Denmark), 5.88%, 09/14/2033(c) | 2,162,000 | 2,179,540 | ||||||
| ||||||||
Stena International S.A. (Sweden), | ||||||||
7.25%, 01/15/2031(c) | 2,035,000 | 2,025,212 | ||||||
| ||||||||
7.63%, 02/15/2031(c) | 13,085,000 | 13,167,632 | ||||||
| ||||||||
17,372,384 | ||||||||
|
Principal Amount | Value | |||||||
Movies & Entertainment–0.07% |
| |||||||
Walt Disney Co. (The), 6.55%, 03/15/2033 | $ | 8,000 | $ | 8,904 | ||||
| ||||||||
Warnermedia Holdings, Inc., | ||||||||
5.05%, 03/15/2042 | 1,454,000 | 1,223,650 | ||||||
| ||||||||
5.14%, 03/15/2052 | 980,000 | 797,049 | ||||||
| ||||||||
5.39%, 03/15/2062 | 1,598,000 | 1,290,357 | ||||||
| ||||||||
3,319,960 | ||||||||
| ||||||||
Multi-Family Residential REITs–0.08% |
| |||||||
AvalonBay Communities, Inc., | 4,131,000 | 4,145,019 | ||||||
| ||||||||
Multi-line Insurance–0.05% |
| |||||||
Metropolitan Life Global Funding I, 5.15%, 03/28/2033(c) | 2,482,000 | 2,456,937 | ||||||
| ||||||||
Multi-Sector Holdings–0.01% |
| |||||||
SURA Asset Management S.A. (Colombia), 4.88%, 04/17/2024(c) | 300,000 | 298,983 | ||||||
| ||||||||
Multi-Utilities–0.40% |
| |||||||
Abu Dhabi National Energy Co. PJSC (United Arab Emirates), 4.70%, 04/24/2033(c) | 400,000 | 390,444 | ||||||
| ||||||||
Ameren Illinois Co., 4.95%, 06/01/2033(b) | 1,388,000 | 1,367,395 | ||||||
| ||||||||
Black Hills Corp., 6.15%, 05/15/2034(b) | 3,659,000 | 3,764,000 | ||||||
| ||||||||
Dominion Energy, Inc., 5.38%, 11/15/2032(b) | 1,880,000 | 1,870,563 | ||||||
| ||||||||
DTE Electric Co., 5.20%, 03/01/2034 | 3,001,000 | 2,988,217 | ||||||
| ||||||||
NiSource, Inc., 5.25%, 03/30/2028(b) | 615,000 | 618,077 | ||||||
| ||||||||
Public Service Enterprise Group, Inc., | ||||||||
5.88%, 10/15/2028 | 4,859,000 | 4,991,185 | ||||||
| ||||||||
6.13%, 10/15/2033(b) | 3,038,000 | 3,168,739 | ||||||
| ||||||||
WEC Energy Group, Inc., 5.15%, 10/01/2027 | 1,049,000 | 1,048,524 | ||||||
| ||||||||
20,207,144 | ||||||||
| ||||||||
Office REITs–0.29% |
| |||||||
Alexandria Real Estate Equities, Inc., |
| |||||||
5.25%, 05/15/2036 | 1,965,000 | 1,888,144 | ||||||
| ||||||||
5.63%, 05/15/2054 | 8,654,000 | 8,336,466 | ||||||
| ||||||||
Brandywine Operating Partnership L.P., 7.80%, 03/15/2028(b) | 4,102,000 | 4,067,668 | ||||||
| ||||||||
Office Properties Income Trust, 4.50%, 02/01/2025 | 330,000 | 267,732 | ||||||
| ||||||||
14,560,010 | ||||||||
| ||||||||
Oil & Gas Drilling–0.04% |
| |||||||
Patterson-UTI Energy, Inc., 7.15%, 10/01/2033(b) | 1,742,000 | 1,846,881 | ||||||
| ||||||||
Oil & Gas Exploration & Production–0.67% |
| |||||||
Apache Corp., 7.75%, 12/15/2029 | 1,405,000 | 1,507,445 | ||||||
| ||||||||
Civitas Resources, Inc., | ||||||||
8.38%, 07/01/2028(c) | 4,075,000 | 4,269,271 | ||||||
| ||||||||
8.75%, 07/01/2031(b)(c) | 5,072,000 | 5,400,265 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
| ||||||||
Oil & Gas Exploration & Production–(continued) |
| |||||||
ConocoPhillips Co., | ||||||||
5.55%, 03/15/2054 | $ | 3,199,000 | $ | 3,239,311 | ||||
| ||||||||
5.70%, 09/15/2063 | 1,367,000 | 1,398,207 | ||||||
| ||||||||
Gran Tierra Energy, Inc. (Colombia), 9.50%, 10/15/2029(c) | 408,000 | 379,950 | ||||||
| ||||||||
Murphy Oil Corp., 6.38%, 07/15/2028 | 4,384,000 | 4,393,601 | ||||||
| ||||||||
Southwestern Energy Co., 5.38%, 03/15/2030 | 2,540,000 | 2,430,120 | ||||||
| ||||||||
Tengizchevroil Finance Co. International Ltd. (Kazakhstan), 4.00%, 08/15/2026(c) | 200,000 | 187,970 | ||||||
| ||||||||
Transocean Titan Financing Ltd., 8.38%, | 4,013,000 | 4,121,632 | ||||||
| ||||||||
Uzbekneftegaz JSC (Uzbekistan), 4.75%, 11/16/2028(c) | 7,487,000 | 6,326,141 | ||||||
| ||||||||
33,653,913 | ||||||||
| ||||||||
Oil & Gas Refining & Marketing–0.57% |
| |||||||
Cosan Luxembourg S.A. (Brazil), 7.50%, 06/27/2030(c) | 6,893,000 | 7,121,848 | ||||||
| ||||||||
CVR Energy, Inc., 8.50%, 01/15/2029(b)(c) | 11,783,000 | 11,866,129 | ||||||
| ||||||||
Phillips 66 Co., 5.30%, 06/30/2033 | 2,111,000 | 2,094,349 | ||||||
| ||||||||
Puma International Financing S.A. (Singapore), 5.00%, 01/24/2026(c) | 200,000 | 189,472 | ||||||
| ||||||||
Raizen Fuels Finance S.A. (Brazil), | ||||||||
6.45%, 03/05/2034(c) | 4,765,000 | 4,840,687 | ||||||
| ||||||||
6.95%, 03/05/2054(c) | 2,420,000 | 2,469,153 | ||||||
| ||||||||
28,581,638 | ||||||||
| ||||||||
Oil & Gas Storage & Transportation–2.39% |
| |||||||
Abu Dhabi Crude Oil Pipeline LLC (United Arab Emirates), 3.65%, 11/02/2029(c) | 200,000 | 187,750 | ||||||
| ||||||||
Antero Midstream Partners L.P./Antero Midstream Finance Corp., 6.63%, 02/01/2032(b)(c) | 6,914,000 | 6,890,043 | ||||||
| ||||||||
Cheniere Energy Partners L.P., 5.95%, 06/30/2033(b) | 1,944,000 | 1,959,196 | ||||||
| ||||||||
Columbia Pipelines Holding Co. LLC, 6.06%, 08/15/2026(c) | 935,000 | 946,566 | ||||||
| ||||||||
Enbridge, Inc. (Canada), | ||||||||
5.70%, 03/08/2033 | 2,034,000 | 2,057,757 | ||||||
| ||||||||
7.38%, 01/15/2083(d) | 1,528,000 | 1,535,029 | ||||||
| ||||||||
7.63%, 01/15/2083(b)(d) | 1,683,000 | 1,708,624 | ||||||
| ||||||||
8.50%, 01/15/2084(b)(d) | 2,726,000 | 2,913,601 | ||||||
| ||||||||
Series NC5, 8.25%, 01/15/2084(d) | 4,305,000 | 4,476,653 | ||||||
| ||||||||
Energy Transfer L.P., | ||||||||
6.10%, 12/01/2028 | 1,255,000 | 1,298,143 | ||||||
| ||||||||
6.40%, 12/01/2030 | 933,000 | 979,740 | ||||||
| ||||||||
6.55%, 12/01/2033(b) | 2,150,000 | 2,281,849 | ||||||
| ||||||||
5.55%, 05/15/2034(b) | 3,752,000 | 3,714,663 | ||||||
| ||||||||
5.95%, 05/15/2054 | 3,439,000 | 3,358,515 | ||||||
| ||||||||
8.00%, 05/15/2054(d) | 4,325,000 | 4,497,373 | ||||||
|
Principal Amount | Value | |||||||
| ||||||||
Oil & Gas Storage & Transportation–(continued) |
| |||||||
Genesis Energy L.P./Genesis Energy Finance Corp., | ||||||||
8.25%, 01/15/2029 | $ | 2,180,000 | $ | 2,218,115 | ||||
| ||||||||
8.88%, 04/15/2030(b) | 2,485,000 | 2,578,877 | ||||||
| ||||||||
GreenSaif Pipelines Bidco S.a.r.l. (Saudi Arabia), | ||||||||
6.13%, 02/23/2038(c) | 4,010,000 | 4,075,233 | ||||||
| ||||||||
6.51%, 02/23/2042(c) | 5,385,000 | 5,554,615 | ||||||
| ||||||||
Kinder Morgan, Inc., | ||||||||
4.80%, 02/01/2033 | 868,000 | 819,647 | ||||||
| ||||||||
5.20%, 06/01/2033(b) | 2,042,000 | 1,988,793 | ||||||
| ||||||||
5.45%, 08/01/2052(b) | 1,694,000 | 1,561,003 | ||||||
| ||||||||
MPLX L.P., 4.95%, 03/14/2052 | 899,000 | 772,469 | ||||||
| ||||||||
NGL Energy Operating LLC/NGL Energy Finance Corp., | ||||||||
8.13%, 02/15/2029(b)(c) | 2,280,000 | 2,303,432 | ||||||
| ||||||||
8.38%, 02/15/2032(c) | 6,841,000 | 6,954,506 | ||||||
| ||||||||
Northern Natural Gas Co., 5.63%, 02/01/2054(b)(c) | 1,823,000 | 1,848,182 | ||||||
| ||||||||
ONEOK, Inc., | ||||||||
5.65%, 11/01/2028(b) | 1,166,000 | 1,187,035 | ||||||
| ||||||||
5.80%, 11/01/2030 | 1,700,000 | 1,740,372 | ||||||
| ||||||||
6.05%, 09/01/2033 | 2,920,000 | 3,010,491 | ||||||
| ||||||||
6.63%, 09/01/2053(b) | 4,151,000 | 4,466,499 | ||||||
| ||||||||
Prairie Acquiror L.P., 9.00%, 08/01/2029(c) | 1,299,000 | 1,309,696 | ||||||
| ||||||||
Sabine Pass Liquefaction LLC, 5.90%, 09/15/2037(b) | 1,413,000 | 1,464,355 | ||||||
| ||||||||
Tallgrass Energy Partners L.P./Tallgrass Energy Finance Corp., 7.38%, 02/15/2029(c) | 9,738,000 | 9,723,695 | ||||||
| ||||||||
Targa Resources Corp., 6.25%, 07/01/2052 | 770,000 | 781,152 | ||||||
| ||||||||
TMS Issuer S.a.r.l. (Saudi Arabia), 5.78%, 08/23/2032(c) | 2,210,000 | 2,267,895 | ||||||
| ||||||||
Venture Global LNG, Inc., | ||||||||
9.50%, 02/01/2029(b)(c) | 6,578,000 | 7,017,663 | ||||||
| ||||||||
9.88%, 02/01/2032(b)(c) | 6,742,000 | 7,102,737 | ||||||
| ||||||||
Western Midstream Operating L.P., 6.15%, 04/01/2033(b) | 1,943,000 | 1,975,738 | ||||||
| ||||||||
Williams Cos., Inc. (The), | ||||||||
5.30%, 08/15/2028 | 5,500,000 | 5,543,745 | ||||||
| ||||||||
5.65%, 03/15/2033(b) | 2,089,000 | 2,125,188 | ||||||
| ||||||||
119,196,635 | ||||||||
| ||||||||
Other Specialty Retail–0.01% |
| |||||||
Tractor Supply Co., 5.25%, 05/15/2033(b) | 745,000 | 741,386 | ||||||
| ||||||||
Packaged Foods & Meats–0.44% |
| |||||||
Bimbo Bakeries USA, Inc. (Mexico), 6.05%, 01/15/2029(c) | 2,504,000 | 2,579,458 | ||||||
| ||||||||
Frigorifico Concepcion S.A. (Paraguay), 7.70%, 07/21/2028(c) | 900,000 | 783,697 | ||||||
| ||||||||
J.M. Smucker Co. (The), 6.20%, 11/15/2033(b) | 1,672,000 | 1,768,450 | ||||||
| ||||||||
McCormick & Co., Inc., 4.95%, 04/15/2033(b) | 651,000 | 635,789 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
| ||||||||
Packaged Foods & Meats–(continued) |
| |||||||
Minerva Luxembourg S.A. (Brazil), | ||||||||
4.38%, 03/18/2031(c) | $ | 10,499,000 | $ | 8,694,806 | ||||
| ||||||||
8.88%, 09/13/2033(c) | 6,550,000 | 6,892,729 | ||||||
| ||||||||
Ulker Biskuvi Sanayi A.S. (Turkey), 6.95%, 10/30/2025(c) | 400,000 | 396,494 | ||||||
| ||||||||
21,751,423 | ||||||||
| ||||||||
Paper & Plastic Packaging Products & Materials–0.04% |
| |||||||
Sealed Air Corp., 7.25%, 02/15/2031(b)(c) | 1,925,000 | 1,989,745 | ||||||
| ||||||||
Paper Products–0.07% |
| |||||||
Inversiones CMPC S.A. (Chile), 6.13%, 02/26/2034(c) | 3,110,000 | 3,161,315 | ||||||
| ||||||||
Suzano Austria GmbH (Brazil), 7.00%, 03/16/2047(c) | 205,000 | 212,836 | ||||||
| ||||||||
3,374,151 | ||||||||
| ||||||||
Passenger Airlines–0.09% |
| |||||||
American Airlines Pass-Through Trust, Series 2021-1, Class A, 2.88%, 07/11/2034 | 331,043 | 282,387 | ||||||
| ||||||||
British Airways Pass-Through Trust (United Kingdom), Series 2021-1, Class A, 2.90%, 03/15/2035(c) | 1,716,535 | 1,490,707 | ||||||
| ||||||||
Delta Air Lines, Inc./SkyMiles IP Ltd., | ||||||||
4.50%, 10/20/2025(c) | 539,031 | 532,438 | ||||||
| ||||||||
4.75%, 10/20/2028(c) | 1,635,962 | 1,599,955 | ||||||
| ||||||||
United Airlines Pass-Through Trust, Series 2020-1, Class A, 5.88%, 10/15/2027 | 682,228 | 689,512 | ||||||
| ||||||||
4,594,999 | ||||||||
| ||||||||
Personal Care Products–0.18% |
| |||||||
Kenvue, Inc., | ||||||||
5.35%, 03/22/2026 | 447,000 | 450,083 | ||||||
| ||||||||
5.05%, 03/22/2028(b) | 1,057,000 | 1,064,240 | ||||||
| ||||||||
5.00%, 03/22/2030(b) | 2,887,000 | 2,896,776 | ||||||
| ||||||||
4.90%, 03/22/2033(b) | 2,491,000 | 2,463,974 | ||||||
| ||||||||
5.10%, 03/22/2043(b) | 1,025,000 | 1,002,407 | ||||||
| ||||||||
5.20%, 03/22/2063 | 995,000 | 965,189 | ||||||
| ||||||||
8,842,669 | ||||||||
| ||||||||
Pharmaceuticals–0.87% |
| |||||||
AstraZeneca Finance LLC (United Kingdom), | ||||||||
4.85%, 02/26/2029(b) | 3,711,000 | 3,710,774 | ||||||
| ||||||||
4.90%, 02/26/2031 | 4,253,000 | 4,245,156 | ||||||
| ||||||||
5.00%, 02/26/2034(b) | 5,353,000 | 5,373,021 | ||||||
| ||||||||
Bristol-Myers Squibb Co., | ||||||||
4.90%, 02/22/2029(b) | 2,111,000 | 2,106,732 | ||||||
| ||||||||
5.90%, 11/15/2033(b) | 2,451,000 | 2,594,943 | ||||||
| ||||||||
6.25%, 11/15/2053(b) | 1,605,000 | 1,779,235 | ||||||
| ||||||||
6.40%, 11/15/2063 | 3,947,000 | 4,411,998 | ||||||
| ||||||||
Eli Lilly and Co., | ||||||||
4.70%, 02/09/2034 | 9,302,000 | 9,185,833 | ||||||
| ||||||||
5.00%, 02/09/2054(b) | 3,692,000 | 3,639,629 | ||||||
| ||||||||
5.10%, 02/09/2064(b) | 4,686,000 | 4,608,544 | ||||||
|
Principal Amount | Value | |||||||
| ||||||||
Pharmaceuticals–(continued) |
| |||||||
Merck & Co., Inc., | ||||||||
5.00%, 05/17/2053 | $ | 1,074,000 | $ | 1,041,690 | ||||
| ||||||||
5.15%, 05/17/2063 | 688,000 | 672,058 | ||||||
| ||||||||
43,369,613 | ||||||||
| ||||||||
Precious Metals & Minerals–0.00% |
| |||||||
ALROSA Finance S.A. (Russia), 4.65%, 04/09/2024(c)(e)(i) | 200,000 | 0 | ||||||
| ||||||||
Property & Casualty Insurance–0.02% |
| |||||||
Travelers Cos., Inc. (The), 5.45%, 05/25/2053 | 1,036,000 | 1,058,343 | ||||||
| ||||||||
Rail Transportation–0.24% |
| |||||||
Empresa de los Ferrocarriles del Estado (Chile), 3.83%, 09/14/2061(c) | 209,000 | 138,872 | ||||||
| ||||||||
Norfolk Southern Corp., | ||||||||
5.05%, 08/01/2030(b) | 2,001,000 | 2,000,455 | ||||||
| ||||||||
5.55%, 03/15/2034(b) | 2,238,000 | 2,299,024 | ||||||
| ||||||||
5.35%, 08/01/2054(b) | 2,742,000 | 2,689,822 | ||||||
| ||||||||
5.95%, 03/15/2064 | 2,841,000 | 3,000,056 | ||||||
| ||||||||
Union Pacific Corp., 5.15%, 01/20/2063 | 2,172,000 | 2,083,302 | ||||||
| ||||||||
12,211,531 | ||||||||
| ||||||||
Real Estate Development–0.53% |
| |||||||
Piedmont Operating Partnership L.P., 9.25%, 07/20/2028 | 24,820,000 | 26,238,627 | ||||||
| ||||||||
Regional Banks–0.36% |
| |||||||
Banco Internacional del Peru S.A.A. Interbank (Peru), 3.25%, 10/04/2026(c) | 200,000 | 188,489 | ||||||
| ||||||||
Citizens Financial Group, Inc., 5.64%, 05/21/2037(d) | 1,241,000 | 1,139,950 | ||||||
| ||||||||
M&T Bank Corp., | 1,294,000 | 1,188,702 | ||||||
| ||||||||
Truist Financial Corp., | ||||||||
6.05%, 06/08/2027(b)(d) | 2,286,000 | 2,309,539 | ||||||
| ||||||||
4.87%, 01/26/2029(b)(d) | 1,395,000 | 1,360,944 | ||||||
| ||||||||
7.16%, 10/30/2029(d) | 3,276,000 | 3,468,512 | ||||||
| ||||||||
5.44%, 01/24/2030(b)(d) | 2,835,000 | 2,805,492 | ||||||
| ||||||||
4.92%, 07/28/2033(d) | 1,981,000 | 1,823,069 | ||||||
| ||||||||
6.12%, 10/28/2033(b)(d) | 1,219,000 | 1,241,142 | ||||||
| ||||||||
5.87%, 06/08/2034(d) | 2,454,000 | 2,454,973 | ||||||
| ||||||||
17,980,812 | ||||||||
| ||||||||
Reinsurance–0.10% |
| |||||||
Global Atlantic (Fin) Co., 4.70%, 10/15/2051(b)(c)(d) | 5,724,000 | 5,057,509 | ||||||
| ||||||||
Renewable Electricity–0.01% |
| |||||||
Adani Green Energy Ltd. (India), 4.38%, 09/08/2024(c) | 200,000 | 197,455 | ||||||
| ||||||||
Empresa Electrica Cochrane S.p.A. (Chile), 5.50%, 05/14/2027(c) | 104,860 | 101,705 | ||||||
| ||||||||
ENN Clean Energy International Investment Ltd. (China), 3.38%, 05/12/2026(c) | 200,000 | 189,034 | ||||||
| ||||||||
488,194 | ||||||||
|
.
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
| ||||||||
Restaurants–0.26% |
| |||||||
Alsea S.A.B. de C.V. (Mexico), 7.75%, 12/14/2026(c) | $ | 400,000 | $ | 406,598 | ||||
| ||||||||
Arcos Dorados B.V. (Brazil), 6.13%, 05/27/2029(c) | 322,000 | 315,671 | ||||||
| ||||||||
McDonald’s Corp., | ||||||||
4.80%, 08/14/2028(b) | 6,369,000 | 6,354,479 | ||||||
| ||||||||
4.95%, 08/14/2033(b) | 5,305,000 | 5,265,367 | ||||||
| ||||||||
5.45%, 08/14/2053(b) | 882,000 | 880,046 | ||||||
| ||||||||
13,222,161 | ||||||||
| ||||||||
Retail REITs–0.12% |
| |||||||
Kite Realty Group L.P., 5.50%, 03/01/2034(b) | 1,277,000 | 1,249,019 | ||||||
| ||||||||
NNN REIT, Inc., 5.60%, 10/15/2033(b) | 1,296,000 | 1,293,356 | ||||||
| ||||||||
Realty Income Corp., 5.63%, 10/13/2032(b) | 834,000 | 844,661 | ||||||
| ||||||||
Regency Centers L.P., 5.25%, 01/15/2034(b) | 2,667,000 | 2,608,295 | ||||||
| ||||||||
5,995,331 | ||||||||
| ||||||||
Self-Storage REITs–0.22% |
| |||||||
Extra Space Storage L.P., | ||||||||
5.70%, 04/01/2028 | 730,000 | 740,669 | ||||||
| ||||||||
5.40%, 02/01/2034 | 4,901,000 | 4,807,077 | ||||||
| ||||||||
Public Storage Operating Co., | ||||||||
5.13%, 01/15/2029(b) | 514,000 | 519,376 | ||||||
| ||||||||
5.10%, 08/01/2033(b) | 3,101,000 | 3,100,212 | ||||||
| ||||||||
5.35%, 08/01/2053(b) | 1,860,000 | 1,848,434 | ||||||
| ||||||||
11,015,768 | ||||||||
| ||||||||
Semiconductors–0.15% |
| |||||||
Foundry JV Holdco LLC, 5.88%, 01/25/2034(c) | 3,986,000 | 3,970,210 | ||||||
| ||||||||
Micron Technology, Inc., 5.30%, 01/15/2031 | 3,141,000 | 3,110,241 | ||||||
| ||||||||
SK hynix, Inc. (South Korea), 6.38%, 01/17/2028(c) | 600,000 | 618,313 | ||||||
| ||||||||
7,698,764 | ||||||||
| ||||||||
Single-Family Residential REITs–0.08% |
| |||||||
Sun Communities Operating L.P., 5.50%, 01/15/2029 | 4,127,000 | 4,089,578 | ||||||
| ||||||||
Sovereign Debt–3.50% |
| |||||||
Brazilian Government International Bond (Brazil), | ||||||||
6.13%, 03/15/2034 | 17,150,000 | 16,972,489 | ||||||
| ||||||||
7.13%, 05/13/2054 | 20,884,000 | 20,909,639 | ||||||
| ||||||||
Colombia Government International Bond (Colombia), | ||||||||
8.00%, 04/20/2033 | 200,000 | 209,475 | ||||||
| ||||||||
7.50%, 02/02/2034 | 3,455,000 | 3,494,437 | ||||||
| ||||||||
Costa Rica Government International Bond (Costa Rica), 7.30%, 11/13/2054(c) | 8,630,000 | 9,115,437 | ||||||
| ||||||||
Dominican Republic International Bond (Dominican Republic), 4.50%, 01/30/2030(c) | 200,000 | 182,013 | ||||||
|
Principal Amount | Value | |||||||
| ||||||||
Sovereign Debt–(continued) |
| |||||||
Finance Department Government of Sharjah (United Arab Emirates), 6.13%, 03/06/2036(c) | $ | 670,000 | $ | 664,786 | ||||
| ||||||||
Ghana Government International Bond (Ghana), 7.75%, 04/07/2029(c)(e) | 4,937,000 | 2,137,968 | ||||||
| ||||||||
Guatemala Government Bond (Guatemala), 7.05%, 10/04/2032(c) | 200,000 | 210,725 | ||||||
| ||||||||
Hungary Government International Bond (Hungary), 5.50%, 03/26/2036(b)(c) | 8,045,000 | 7,743,457 | ||||||
| ||||||||
Indonesia Government International Bond (Indonesia), | ||||||||
6.63%, 02/17/2037(c) | 400,000 | 446,356 | ||||||
| ||||||||
5.10%, 02/10/2054(b) | 830,000 | 796,038 | ||||||
| ||||||||
Israel Government International Bond (Israel), 4.50%, 01/17/2033 | 200,000 | 186,094 | ||||||
| ||||||||
Ivory Coast Government International Bond (Ivory Coast), 7.63%, 01/30/2033(c) | 8,845,000 | 8,576,209 | ||||||
| ||||||||
Mexico Government International Bond (Mexico), | ||||||||
4.88%, 05/19/2033 | 200,000 | 188,468 | ||||||
| ||||||||
6.35%, 02/09/2035 | 3,380,000 | 3,465,717 | ||||||
| ||||||||
6.00%, 05/07/2036(b) | 6,890,000 | 6,872,613 | ||||||
| ||||||||
6.34%, 05/04/2053(b) | 8,059,000 | 7,873,012 | ||||||
| ||||||||
6.40%, 05/07/2054(b) | 8,904,000 | 8,779,562 | ||||||
| ||||||||
Oman Government International Bond (Oman), | ||||||||
6.00%, 08/01/2029(c) | 200,000 | 203,030 | ||||||
| ||||||||
6.25%, 01/25/2031(c) | 600,000 | 615,405 | ||||||
| ||||||||
Panama Government International Bond (Panama), | ||||||||
7.50%, 03/01/2031 | 6,475,000 | 6,654,154 | ||||||
| ||||||||
8.00%, 03/01/2038 | 1,634,000 | 1,674,708 | ||||||
| ||||||||
Republic of South Africa Government International Bond (South Africa), 5.75%, 09/30/2049 | 200,000 | 145,963 | ||||||
| ||||||||
Republic of Uzbekistan International Bond (Uzbekistan), 7.85%, 10/12/2028(c) | 3,504,000 | 3,669,669 | ||||||
| ||||||||
Romanian Government International Bond (Romania), | ||||||||
5.25%, 11/25/2027(c) | 300,000 | 294,744 | ||||||
| ||||||||
6.63%, 02/17/2028(c) | 5,030,000 | 5,175,900 | ||||||
| ||||||||
5.88%, 01/30/2029(c) | 4,864,000 | 4,833,897 | ||||||
| ||||||||
3.63%, 03/27/2032(c) | 300,000 | 254,069 | ||||||
| ||||||||
7.13%, 01/17/2033(c) | 3,760,000 | 3,965,574 | ||||||
| ||||||||
6.38%, 01/30/2034(c) | 5,840,000 | 5,815,735 | ||||||
| ||||||||
7.63%, 01/17/2053(c) | 500,000 | 545,624 | ||||||
| ||||||||
Saudi Government International Bond (Saudi Arabia), | ||||||||
4.38%, 04/16/2029(c) | 415,000 | 403,256 | ||||||
| ||||||||
4.75%, 01/16/2030(c) | 8,658,000 | 8,519,541 | ||||||
| ||||||||
5.00%, 01/16/2034(c) | 8,991,000 | 8,836,580 | ||||||
| ||||||||
5.00%, 01/18/2053(c) | 200,000 | 176,590 | ||||||
| ||||||||
5.75%, 01/16/2054(c) | 10,666,000 | 10,341,284 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||
Sovereign Debt–(continued) | ||||||
Serbia International Bond (Serbia), 6.50%, 09/26/2033(c) | $ | 300,000 | $ 304,882 | |||
Trinidad & Tobago Government International Bond (Trinidad), 5.95%, 01/14/2031(c) | 4,275,000 | 4,295,306 | ||||
Turkiye Government International Bond (Turkey), 7.63%, 05/15/2034 | 9,000,000 | 8,974,098 | ||||
| ||||||
174,524,504 | ||||||
Specialized Finance–0.11% | ||||||
Blackstone Private Credit Fund, 6.25%, 01/25/2031(c) | 2,735,000 | 2,713,025 | ||||
India Airport Infra (India), 6.25%, 10/25/2025(c) | 400,000 | 397,252 | ||||
Jefferson Capital Holdings LLC, 9.50%, 02/15/2029(c) | 2,202,000 | 2,226,898 | ||||
| ||||||
5,337,175 | ||||||
Specialty Chemicals–0.44% | ||||||
OCP S.A. (Morocco), 3.75%, 06/23/2031(c) | 200,000 | 170,178 | ||||
Sasol Financing USA LLC (South Africa), | 5,450,000 | 5,094,799 | ||||
| ||||||
6.50%, 09/27/2028 | 300,000 | 282,184 | ||||
8.75%, 05/03/2029(c) | 7,995,000 | 8,007,752 | ||||
5.50%, 03/18/2031 | 9,811,000 | 8,177,365 | ||||
21,732,278 | ||||||
Steel–0.01% | ||||||
CSN Resources S.A. (Brazil), 8.88%, 12/05/2030(c) | 670,000 | 687,839 | ||||
| ||||||
Systems Software–0.15% | ||||||
Oracle Corp., | ||||||
6.25%, 11/09/2032 | 2,431,000 | 2,568,763 | ||||
| ||||||
4.90%, 02/06/2033(b) | 2,078,000 | 2,010,040 | ||||
6.90%, 11/09/2052 | 1,729,000 | 1,949,777 | ||||
5.55%, 02/06/2053(b) | 1,077,000 | 1,029,860 | ||||
7,558,440 | ||||||
Technology Hardware, Storage & Peripherals–0.01% | ||||||
Lenovo Group Ltd. (China), 6.54%, 07/27/2032(c) | 400,000 | 419,866 | ||||
| ||||||
Tobacco–0.87% | ||||||
B.A.T Capital Corp. (United Kingdom), | ||||||
5.83%, 02/20/2031(b) | 1,694,000 | 1,688,834 | ||||
| ||||||
6.00%, 02/20/2034 | 1,819,000 | 1,800,760 | ||||
7.08%, 08/02/2043(b) | 593,000 | 618,528 | ||||
7.08%, 08/02/2053(b) | 988,000 | 1,023,813 |
Principal Amount | Value | |||||
Tobacco–(continued) | ||||||
Philip Morris International, Inc., | ||||||
5.00%, 11/17/2025 | $ | 787,000 | $ 784,545 | |||
| ||||||
5.13%, 11/17/2027(b) | 2,235,000 | 2,239,730 | ||||
4.88%, 02/15/2028(b) | 4,913,000 | 4,888,036 | ||||
5.25%, 09/07/2028 | 3,665,000 | 3,694,938 | ||||
4.88%, 02/13/2029(b) | 9,607,000 | 9,447,873 | ||||
5.13%, 02/13/2031(b) | 2,596,000 | 2,557,817 | ||||
5.75%, 11/17/2032(b) | 1,120,000 | 1,142,906 | ||||
5.38%, 02/15/2033 | 5,438,000 | 5,414,315 | ||||
5.63%, 09/07/2033 | 3,173,000 | 3,208,674 | ||||
5.25%, 02/13/2034(b) | 5,192,000 | 5,075,058 | ||||
43,585,827 | ||||||
Trading Companies & Distributors–0.50% | ||||||
AerCap Global Aviation Trust (Ireland), 6.50%, 06/15/2045(c)(d) | 7,833,000 | 7,778,851 | ||||
Avolon Holdings Funding Ltd. (Ireland), | ||||||
6.38%, 05/04/2028(c) | 4,497,000 | 4,564,959 | ||||
| ||||||
5.75%, 03/01/2029(c) | 9,145,000 | 9,019,172 | ||||
| ||||||
Triton Container International Ltd. (Bermuda), | ||||||
2.05%, 04/15/2026(c) | 1,044,000 | 957,368 | ||||
| ||||||
3.15%, 06/15/2031(c) | 3,197,000 | 2,519,798 | ||||
24,840,148 | ||||||
Transaction & Payment Processing Services–0.43% | ||||||
Fiserv, Inc., | ||||||
5.38%, 08/21/2028(b) | 4,998,000 | 5,041,111 | ||||
| ||||||
5.63%, 08/21/2033 | 3,271,000 | 3,306,568 | ||||
5.45%, 03/15/2034 | 9,807,000 | 9,799,660 | ||||
Mastercard, Inc., 4.85%, 03/09/2033(b) | 3,108,000 | 3,105,736 | ||||
| ||||||
21,253,075 | ||||||
Wireless Telecommunication Services–0.46% | ||||||
Bharti Airtel Ltd. (India), 4.38%, 06/10/2025(c) | 200,000 | 196,519 | ||||
Liquid Telecommunications Financing PLC (South Africa), 5.50%, 09/04/2026(c) | 200,000 | 117,500 | ||||
SixSigma Networks Mexico S.A. de C.V. (Mexico), 7.50%, 05/02/2025(c) | 325,000 | 312,257 | ||||
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC, | ||||||
4.74%, 03/20/2025(c) | 513,125 | 509,779 | ||||
| ||||||
5.15%, 03/20/2028(c) | 1,390,600 | 1,386,598 | ||||
T-Mobile USA, Inc., | ||||||
5.75%, 01/15/2034(b) | 3,716,000 | 3,826,556 | ||||
| ||||||
5.65%, 01/15/2053 | 2,214,000 | 2,204,319 | ||||
6.00%, 06/15/2054 | 1,191,000 | 1,248,233 | ||||
5.50%, 01/15/2055(b) | 3,938,000 | 3,840,193 | ||||
Vodafone Group PLC (United Kingdom), | ||||||
4.13%, 06/04/2081(d) | 5,448,000 | 4,665,259 | ||||
| ||||||
5.13%, 06/04/2081(d) | 6,245,000 | 4,639,277 | ||||
22,946,490 | ||||||
Total U.S. Dollar Denominated Bonds & Notes |
| 2,350,197,975 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
U.S. Government Sponsored Agency Mortgage-Backed Securities–30.82% |
| |||||||
Collateralized Mortgage Obligations–0.70% |
| |||||||
Fannie Mae REMICs, | ||||||||
7.00%, 05/25/2033(j) | $ | 3,161 | $ | 476 | ||||
| ||||||||
6.00%, 07/25/2033(j) | 2,556 | 384 | ||||||
| ||||||||
Freddie Mac Multifamily Structured Pass-Through Ctfs., | ||||||||
Series K038, Class X1, IO, 1.05%, 03/25/2024(k) | 3,739,105 | 209 | ||||||
| ||||||||
Series K083, Class AM, 4.03%, 10/25/2028(l) | 4,736,000 | 4,578,778 | ||||||
| ||||||||
Series K085, Class AM, 4.06%, 10/25/2028(l) | 4,736,000 | 4,597,502 | ||||||
| ||||||||
Series K089, Class AM, 3.63%, 01/25/2029(l) | 8,018,000 | 7,639,481 | ||||||
| ||||||||
Series K088, Class AM, 3.76%, 01/25/2029(l) | 18,944,000 | 18,158,608 | ||||||
| ||||||||
34,975,438 | ||||||||
| ||||||||
Federal Home Loan Mortgage Corp. (FHLMC)–2.09% |
| |||||||
3.50%, 08/01/2026 | 80,320 | 78,399 | ||||||
| ||||||||
7.00%, 05/01/2028 to 06/01/2032 | 236,249 | 242,948 | ||||||
| ||||||||
6.00%, 03/01/2029 to 08/01/2053 | 61,589,366 | 62,283,185 | ||||||
| ||||||||
7.50%, 05/01/2030 to 05/01/2035 | 227,335 | 229,937 | ||||||
| ||||||||
8.50%, 08/01/2031 | 13,072 | 13,707 | ||||||
| ||||||||
3.00%, 02/01/2032 | 966,624 | 914,599 | ||||||
| ||||||||
6.50%, 08/01/2032 to 09/01/2036 | 60,236 | 62,585 | ||||||
| ||||||||
8.00%, 08/01/2032 | 9,504 | 9,851 | ||||||
| ||||||||
5.50%, 01/01/2034 to 07/01/2053 | 30,359,151 | 30,221,837 | ||||||
| ||||||||
5.00%, 07/01/2034 to 06/01/2040 | 857,187 | 852,135 | ||||||
| ||||||||
4.50%, 02/01/2040 to 10/01/2046 | 9,440,343 | 9,217,154 | ||||||
| ||||||||
ARM, | ||||||||
6.31% (1 yr. Refinitiv USD IBOR Consumer Cash Fallbacks + 2.06%), 12/01/2036(h) | 28,407 | 29,203 | ||||||
| ||||||||
5.79% (1 yr. Refinitiv USD IBOR Consumer Cash Fallbacks + 2.29%), 02/01/2037(h) | 2,497 | 2,501 | ||||||
| ||||||||
5.50% (1 yr. Refinitiv USD IBOR Consumer Cash Fallbacks + 1.88%), 05/01/2037(h) | 40,342 | 40,220 | ||||||
| ||||||||
104,198,261 | ||||||||
|
Principal Amount | Value | |||||||
Federal National Mortgage Association (FNMA)–1.45% |
| |||||||
6.50%, 07/01/2028 to 01/01/2037 | $ | 39,362 | $ | 40,541 | ||||
| ||||||||
7.50%, 02/01/2030 to 08/01/2037 | 325,255 | 332,981 | ||||||
| ||||||||
9.50%, 04/01/2030 | 427 | 429 | ||||||
| ||||||||
3.50%, 12/01/2030 to 05/01/2047 | 23,890,093 | 21,821,294 | ||||||
| ||||||||
7.00%, 03/01/2032 to 02/01/2034 | 132,281 | 135,886 | ||||||
| ||||||||
8.50%, 10/01/2032 | 21,131 | 22,238 | ||||||
| ||||||||
5.50%, 04/01/2033 to 09/01/2053 | 33,486,544 | 33,277,156 | ||||||
| ||||||||
8.00%, 04/01/2033 | 18,803 | 19,581 | ||||||
| ||||||||
6.00%, 04/01/2037 to 10/01/2039 | 6,355 | 6,507 | ||||||
| ||||||||
5.00%, 12/01/2039 | 263,256 | 261,321 | ||||||
| ||||||||
3.00%, 08/01/2043 | 1,869,987 | 1,661,519 | ||||||
| ||||||||
4.00%, 12/01/2048 | 15,666,178 | 14,679,330 | ||||||
| ||||||||
ARM, | ||||||||
5.69% (1 yr. U.S. Treasury Yield Curve Rate + 2.20%), 05/01/2035(h) | 45,323 | 46,531 | ||||||
| ||||||||
5.98% (1 yr. Refinitiv USD IBOR Consumer Cash Fallbacks + 1.63%), 01/01/2037(h) | 25,675 | 26,345 | ||||||
| ||||||||
5.06% (1 yr. Refinitiv USD IBOR Consumer Cash Fallbacks + 1.72%), 03/01/2038(h) | 13,817 | 13,823 | ||||||
| ||||||||
72,345,482 | ||||||||
| ||||||||
Government National Mortgage Association (GNMA)–3.95% |
| |||||||
ARM, | ||||||||
3.63% (1 yr. U.S. Treasury Yield Curve Rate + 1.50%), 01/20/2025(h) | 1,365 | 1,351 | ||||||
| ||||||||
4.00% (1 yr. U.S. Treasury Yield Curve Rate + 1.50%), 05/20/2025(h) | 804 | 799 | ||||||
| ||||||||
4.50% (1 yr. U.S. Treasury Yield Curve Rate + 1.50%), 06/20/2025(h) | 1,062 | 1,053 | ||||||
| ||||||||
8.00%, 08/15/2025 to 06/15/2026 | 1,621 | 1,622 | ||||||
| ||||||||
6.56%, 01/15/2027 | 39,325 | 40,531 | ||||||
| ||||||||
7.00%, 10/15/2028 to 09/15/2032 | 61,846 | 61,805 | ||||||
| ||||||||
6.00%, 11/15/2028 to 02/15/2033 | 29,041 | 29,738 | ||||||
| ||||||||
6.50%, 01/15/2029 to 09/15/2034 | 41,332 | 42,163 | ||||||
| ||||||||
7.50%, 05/15/2031 to 05/15/2032 | 3,207 | 3,216 | ||||||
| ||||||||
5.50%, 06/15/2035 | 20,587 | 20,831 | ||||||
| ||||||||
5.00%, 07/15/2035 | 2,288 | 2,292 | ||||||
| ||||||||
4.00%, 03/20/2048 | 2,672,460 | 2,497,458 | ||||||
| ||||||||
TBA, | ||||||||
4.50%, 03/01/2054(m) | 99,574,000 | 95,097,495 | ||||||
| ||||||||
5.00%, 03/01/2054(m) | 23,000,000 | 22,467,780 | ||||||
| ||||||||
5.50%, 03/01/2054(m) | 77,448,000 | 76,942,773 | ||||||
| ||||||||
197,210,907 | ||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
17 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
| ||||||||
Uniform Mortgage-Backed Securities–22.63% |
| |||||||
TBA, | ||||||||
2.50%, 03/01/2054(m) | $ | 76,374,725 | $ | 62,760,486 | ||||
| ||||||||
3.00%, 03/01/2054(m) | 21,000,000 | 17,964,478 | ||||||
| ||||||||
3.50%, 03/01/2054(m) | 212,000,000 | 188,620,207 | ||||||
| ||||||||
4.00%, 03/01/2054(m) | 49,704,000 | 45,734,210 | ||||||
| ||||||||
4.50%, 03/01/2054(m) | 49,705,000 | 47,054,919 | ||||||
| ||||||||
5.00%, 03/01/2054(m) | 314,042,000 | 304,571,831 | ||||||
| ||||||||
5.50%, 03/01/2054(m) | 235,700,000 | 233,184,855 | ||||||
| ||||||||
6.00%, 03/01/2054(m) | 227,621,853 | 228,606,779 | ||||||
| ||||||||
1,128,497,765 | ||||||||
| ||||||||
Total U.S. Government Sponsored Agency Mortgage-Backed Securities |
| 1,537,227,853 | ||||||
| ||||||||
Asset-Backed Securities–23.33% |
| |||||||
Adjustable Rate Mortgage Trust, |
| |||||||
Series 2004-2, Class 6A1, 0.71%, 02/25/2035(l) | 160,519 | 157,986 | ||||||
| ||||||||
Series 2005-1, Class 4A1, 4.78%, 05/25/2035(l) | 372,582 | 344,434 | ||||||
| ||||||||
AMSR Trust, Series 2021-SFR3, Class B, 1.73%, 10/17/2038(c) | 13,340,000 | 12,076,834 | ||||||
| ||||||||
Angel Oak Mortgage Trust, | ||||||||
Series 2020-1, Class A1, 2.16%, 12/25/2059(c)(l) | 867,882 | 824,603 | ||||||
| ||||||||
Series 2020-3, Class A1, 1.69%, 04/25/2065(c)(l) | 3,273,420 | 3,039,115 | ||||||
| ||||||||
Series 2020-5, Class A1, 1.37%, 05/25/2065(c)(l) | 1,943,792 | 1,804,272 | ||||||
| ||||||||
Series 2021-3, Class A1, 1.07%, 05/25/2066(c)(l) | 2,616,297 | 2,202,419 | ||||||
| ||||||||
Series 2021-7, Class A1, 1.98%, 10/25/2066(c)(l) | 6,874,622 | 5,751,797 | ||||||
| ||||||||
Series 2022-1, Class A1, 2.88%, 12/25/2066(c)(n) | 12,757,017 | 11,416,048 | ||||||
| ||||||||
Series 2023-6, Class A1, 6.50%, 12/25/2067(c)(n) | 3,852,475 | 3,867,394 | ||||||
| ||||||||
Series 2024-2, Class A1, 5.99%, 01/25/2069(c)(n) | 15,170,967 | 15,108,458 | ||||||
| ||||||||
Avis Budget Rental Car Funding (AESOP) LLC, | ||||||||
Series 2022-1A, Class A, 3.83%, 08/21/2028(c) | 20,133,000 | 19,226,874 | ||||||
| ||||||||
Series 2022-1A, Class C, 4.84%, 08/21/2028(c) | 5,417,000 | 5,191,632 | ||||||
| ||||||||
Series 2023-1A, Class A, 5.25%, 04/20/2029(c) | 3,919,000 | 3,904,137 | ||||||
| ||||||||
Series 2023-2A, Class A, 5.20%, 10/20/2027(c) | 2,475,000 | 2,463,115 | ||||||
| ||||||||
Series 2023-4A, Class A, 5.49%, 06/20/2029(c) | 13,131,000 | 13,201,829 | ||||||
| ||||||||
Bain Capital Credit CLO Ltd. (Cayman Islands), | ||||||||
Series 2017-2A, Class AR2, 6.77% (3 mo. Term SOFR + 1.44%), 07/25/2034(c)(h) | 21,505,000 | 21,515,279 | ||||||
| ||||||||
Series 2021-1A, Class A, 6.62% (3 mo. Term SOFR + 1.32%), 04/18/2034(c)(h) | 5,777,000 | 5,770,593 | ||||||
| ||||||||
Banc of America Commercial Mortgage Trust, Series 2015-UBS7, Class AS, 3.99%, 09/15/2048(l) | 4,394,000 | 4,198,624 | ||||||
|
Principal Amount | Value | |||||||
| ||||||||
Bayview MSR Opportunity Master Fund Trust, | ||||||||
Series 2021-4, Class A3, 3.00%, 10/25/2051(c)(l) | $ | 10,434,845 | $ | 8,736,125 | ||||
| ||||||||
Series 2021-4, Class A4, 2.50%, 10/25/2051(c)(l) | 10,434,040 | 8,385,887 | ||||||
| ||||||||
Series 2021-4, Class A8, 2.50%, 10/25/2051(c)(l) | 9,594,055 | 8,360,682 | ||||||
| ||||||||
Series 2021-5, Class A1, 3.00%, 11/25/2051(c)(l) | 10,951,372 | 9,168,566 | ||||||
| ||||||||
Series 2021-5, Class A2, 2.50%, 11/25/2051(c)(l) | 13,362,764 | 10,739,716 | ||||||
| ||||||||
Bear Stearns Adjustable Rate Mortgage Trust, | ||||||||
Series 2003-6, Class 1A3, 5.50%, 08/25/2033(l) | 14,516 | 13,800 | ||||||
| ||||||||
Series 2004-10, Class 21A1, 0.00%, 01/25/2035(l) | 251,360 | 224,047 | ||||||
| ||||||||
Series 2006-1, Class A1, 0.65% (1 yr. U.S. Treasury Yield Curve Rate + 2.25%), 02/25/2036(h) | 136,611 | 125,854 | ||||||
| ||||||||
Bear Stearns ALT-A Trust, | 179,011 | 175,951 | ||||||
| ||||||||
Benchmark Mortgage Trust, | ||||||||
Series 2018-B3, Class C, 4.52%, 04/10/2051(l) | 6,921,000 | 5,545,795 | ||||||
| ||||||||
Series 2019-B14, Class A5, 3.05%, 12/15/2062 | 16,455,000 | 14,686,422 | ||||||
| ||||||||
Series 2019-B15, Class B, 3.56%, 12/15/2072 | 12,220,000 | 9,950,990 | ||||||
| ||||||||
BRAVO Residential Funding Trust, Series 2021-NQM2, Class A1, 0.97%, | 2,120,542 | 1,971,018 | ||||||
| ||||||||
BX Commercial Mortgage Trust, | ||||||||
Series 2021-ACNT, Class A, 6.28% (1 mo. Term SOFR + 0.96%), 11/15/2038(c)(h) | 6,554,779 | 6,516,724 | ||||||
| ||||||||
Series 2021-VOLT, Class C, 6.53% (1 mo. Term SOFR + 1.21%), 09/15/2036(c)(h) | 5,345,000 | 5,263,967 | ||||||
| ||||||||
Series 2021-VOLT, Class D, 7.08% (1 mo. Term SOFR + 1.76%), 09/15/2036(c)(h) | 12,367,000 | 12,175,503 | ||||||
| ||||||||
BX Trust, | ||||||||
Series 2022-CLS, Class A, 5.76%, 10/13/2027(c) | 4,640,000 | 4,618,678 | ||||||
| ||||||||
Series 2022-LBA6, Class A, 6.32% (1 mo. Term SOFR + 1.00%), 01/15/2039(c)(h) | 10,965,000 | 10,891,918 | ||||||
| ||||||||
Series 2022-LBA6, Class B, 6.62% (1 mo. Term SOFR + 1.30%), 01/15/2039(c)(h) | 6,790,000 | 6,729,461 | ||||||
| ||||||||
Series 2022-LBA6, Class C, 6.92% (1 mo. Term SOFR + 1.60%), 01/15/2039(c)(h) | 3,630,000 | 3,593,885 | ||||||
| ||||||||
Carlyle US CLO Ltd., Series 2021-1A, Class A1, 6.72% (3 mo. Term SOFR + 1.40%), 04/15/2034(c)(h) | 9,782,000 | 9,785,160 | ||||||
| ||||||||
Chase Home Lending Mortgage Trust, Series 2019-ATR2, Class A3, 3.50%, | 3,966,914 | 3,520,834 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
18 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
| ||||||||
Chase Mortgage Finance Corp., | ||||||||
Series 2016-SH1, Class M3, 3.75%, 04/25/2045(c)(l) | $ | 974,991 | $ | 871,354 | ||||
| ||||||||
Series 2016-SH2, Class M2, 3.75%, 12/25/2045(c)(l) | 3,850,292 | 3,477,794 | ||||||
| ||||||||
Series 2016-SH2, Class M3, 3.75%, 12/25/2045(c)(l) | 1,909,750 | 1,703,038 | ||||||
| ||||||||
CIFC Funding Ltd. (Cayman Islands), | ||||||||
Series 2014-5A, Class A1R2, 6.78% (3 mo. Term SOFR + 1.46%), 10/17/2031(c)(h) | 4,417,000 | 4,419,089 | ||||||
| ||||||||
Series 2016-1A, Class ARR, 6.75% (3 mo. Term SOFR + 1.34%), 10/21/2031(c)(h) | 4,761,000 | 4,767,894 | ||||||
| ||||||||
Citigroup Commercial Mortgage Trust, | ||||||||
Series 2014-GC23, Class B, 4.18%, 07/10/2047(l) | 2,816,000 | 2,742,298 | ||||||
| ||||||||
Series 2015-GC27, Class A5, 3.14%, 02/10/2048 | 1,233,335 | 1,210,188 | ||||||
| ||||||||
Citigroup Mortgage Loan Trust, Inc., | ||||||||
Series 2004-UST1, Class A4, 5.79%, 08/25/2034(l) | 85,999 | 79,479 | ||||||
| ||||||||
Series 2021-INV3, Class A3, 2.50%, 05/25/2051(c)(l) | 10,549,055 | 8,478,325 | ||||||
| ||||||||
COLT Mortgage Loan Trust, | ||||||||
Series 2020-2, Class A1, 1.85%, 03/25/2065(c)(l) | 36,588 | 36,435 | ||||||
| ||||||||
Series 2021-5, Class A1, 1.73%, 11/26/2066(c)(l) | 4,896,281 | 4,137,012 | ||||||
| ||||||||
Series 2022-1, Class A1, 2.28%, 12/27/2066(c)(l) | 7,539,360 | 6,533,540 | ||||||
| ||||||||
Series 2022-2, Class A1, 2.99%, 02/25/2067(c)(n) | 7,439,048 | 6,751,623 | ||||||
| ||||||||
Series 2022-3, Class A1, 3.90%, 02/25/2067(c)(l) | 10,330,441 | 9,639,137 | ||||||
| ||||||||
Commercial Mortgage Trust, | 5,267,000 | 5,099,910 | ||||||
| ||||||||
Countrywide Home Loans Mortgage Pass-Through Trust, Series 2007-13, Class A10, 6.00%, 08/25/2037 | 187,367 | 93,420 | ||||||
| ||||||||
Credit Suisse Mortgage Capital Trust, | ||||||||
Series 2021-NQM1, Class A1, 0.81%, 05/25/2065(c)(l) | 1,638,421 | 1,386,839 | ||||||
| ||||||||
Series 2021-NQM2, Class A1, 1.18%, 02/25/2066(c)(l) | 2,349,283 | 2,041,170 | ||||||
| ||||||||
Series 2022-ATH1, Class A1A, 2.87%, 01/25/2067(c)(l) | 9,644,248 | 8,962,516 | ||||||
| ||||||||
Series 2022-ATH1, Class A1B, 3.35%, 01/25/2067(c)(l) | 5,772,399 | 4,986,007 | ||||||
| ||||||||
Series 2022-ATH2, Class A1, 4.55%, 05/25/2067(c)(l) | 10,541,721 | 10,227,006 | ||||||
| ||||||||
CSAIL Commercial Mortgage Trust, Series 2020-C19, Class A3, 2.56%, 03/15/2053 | 22,374,000 | 18,832,431 | ||||||
| ||||||||
CSFB Mortgage-Backed Pass-Through Ctfs., Series 2004-AR5, Class 3A1, 4.15%, 06/25/2034(l) | 450,785 | 417,858 | ||||||
|
Principal Amount | Value | |||||||
| ||||||||
DB Master Finance LLC, | ||||||||
Series 2019-1A, Class A23, 4.35%, 05/20/2049(c) | $ | 9,750,550 | $ | 9,278,883 | ||||
| ||||||||
Series 2019-1A, Class A2II, 4.02%, 05/20/2049(c) | 10,299,675 | 9,965,035 | ||||||
| ||||||||
Deutsche Mortgage Securities, Inc. Re-REMIC Trust Ctfs., Series 2007-WM1, Class A1, 4.04%, 06/27/2037(c)(l) | 3,203,069 | 2,714,696 | ||||||
| ||||||||
Domino’s Pizza Master Issuer LLC, Series 2019-1A, Class A2, 3.67%, 10/25/2049(c) | 18,587,520 | 16,992,224 | ||||||
| ||||||||
Dryden 93 CLO Ltd., Series 2021-93A, Class A1A, 6.66% (3 mo. Term SOFR + 1.34%), 01/15/2034(c)(h) | 3,239,313 | 3,243,676 | ||||||
| ||||||||
Ellington Financial Mortgage Trust, | ||||||||
Series 2019-2, Class A1, 2.74%, 11/25/2059(c)(l) | 2,166,111 | 2,031,265 | ||||||
| ||||||||
Series 2020-1, Class A1, 2.01%, 05/25/2065(c)(l) | 353,404 | 342,097 | ||||||
| ||||||||
Series 2021-1, Class A1, 0.80%, 02/25/2066(c)(l) | 786,140 | 659,166 | ||||||
| ||||||||
Series 2022-1, Class A1, 2.21%, 01/25/2067(c)(l) | 7,119,320 | 6,056,002 | ||||||
| ||||||||
Series 2022-3, Class A1, 5.00%, 08/25/2067(c)(n) | 9,604,482 | 9,418,921 | ||||||
| ||||||||
Empower CLO Ltd., Series 2024-1A, Class A1, 0.00% (3 mo. Term SOFR + 1.60%), 04/25/2037(c)(h) | 10,250,000 | 10,266,605 | ||||||
| ||||||||
Extended Stay America Trust, Series 2021-ESH, Class B, 6.81% (1 mo. Term SOFR + 1.49%), 07/15/2038(c)(h) | 4,709,387 | 4,706,040 | ||||||
| ||||||||
Flagstar Mortgage Trust, | ||||||||
Series 2021-11IN, Class A6, 3.70%, 11/25/2051(c)(l) | 16,376,044 | 14,232,142 | ||||||
| ||||||||
Series 2021-8INV, Class A6, 2.50%, 09/25/2051(c)(l) | 3,496,643 | 3,048,041 | ||||||
| ||||||||
Frontier Issuer LLC, Series 2023-1, Class A2, 6.60%, 08/20/2053(c) | 11,786,710 | 11,889,893 | ||||||
| ||||||||
GCAT Trust, | ||||||||
Series 2019-NQM3, Class A1, 3.69%, 11/25/2059(c)(l) | 1,279,301 | 1,207,508 | ||||||
| ||||||||
Series 2020-NQM2, Class A1, 1.56%, 04/25/2065(c)(n) | 1,108,553 | 1,015,354 | ||||||
| ||||||||
GMACM Mortgage Loan Trust, Series 2006-AR1, Class 1A1, 3.36%, 04/19/2036(l) | 377,180 | 292,144 | ||||||
| ||||||||
GoldenTree Loan Management US CLO 1 Ltd., Series 2021-9A, Class A, 6.65% (3 mo. Term SOFR + 1.33%), 01/20/2033(c)(h) | 5,015,000 | 5,016,439 | ||||||
| ||||||||
GoldenTree Loan Management US CLO 2 Ltd., Series 2017-2A, Class AR, 6.49% (3 mo. Term SOFR + 1.17%), 11/20/2030(c)(h) | 8,598,315 | 8,603,337 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
19 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
GoldenTree Loan Management US CLO 5 Ltd., Series 2019-5A, Class AR, 6.65% (3 mo. Term SOFR + 1.33%), 10/20/2032(c)(h) | $ | 6,576,000 | $ | 6,585,522 | ||||
| ||||||||
Golub Capital Partners CLO 35(B) Ltd., Series 2017-35A, Class AR, 6.77% (3 mo. Term SOFR + 1.45%), 07/20/2029(c)(h) | 7,475,651 | 7,478,985 | ||||||
| ||||||||
Golub Capital Partners CLO 40(B) Ltd., Series 2019-40A, Class AR, 6.68% (3 mo. Term SOFR + 1.35%), 01/25/2032(c)(h) | 15,988,000 | 15,992,956 | ||||||
| ||||||||
GS Mortgage Securities Trust, | ||||||||
Series 2020-GC45, Class A5, 2.91%, 02/13/2053 | 8,325,000 | 7,338,558 | ||||||
| ||||||||
Series 2020-GC47, Class A5, 2.38%, 05/12/2053 | 8,750,000 | 7,434,903 | ||||||
| ||||||||
GS Mortgage-Backed Securities Trust, Series 2021-INV1, Class A6, 2.50%, 12/25/2051(c)(l) | 8,636,780 | 7,523,771 | ||||||
| ||||||||
GSR Mortgage Loan Trust, | 99,439 | 88,148 | ||||||
| ||||||||
HarborView Mortgage Loan Trust, Series 2005-9, Class 2A1C, 6.33% (1 mo. Term SOFR + 1.01%), 06/20/2035(h) | 12,547 | 11,418 | ||||||
| ||||||||
Hertz Vehicle Financing III L.P., | ||||||||
Series 2021-2A, Class A, 1.68%, 12/27/2027(c) | 3,927,000 | 3,566,847 | ||||||
| ||||||||
Series 2021-2A, Class B, 2.12%, 12/27/2027(c) | 2,100,000 | 1,905,097 | ||||||
| ||||||||
Hertz Vehicle Financing LLC, Series 2021-1A, Class B, 1.56%, 12/26/2025(c) | 1,289,000 | 1,252,323 | ||||||
| ||||||||
HPEFS Equipment Trust, Series 2023-2A, Class A2, 6.04%, 01/21/2031(c) | 3,485,000 | 3,501,615 | ||||||
| ||||||||
ICG US CLO Ltd., Series 2016-1A, Class A1RR, 6.83% (3 mo. Term SOFR + 1.51%), 04/29/2034(c)(h) | 11,399,000 | 11,383,019 | ||||||
| ||||||||
IP Lending III Ltd., Series 2022-3A, Class SNR, 3.38%, 11/02/2026(c)(i) | 1,255,520 | 1,135,241 | ||||||
| ||||||||
IP Lending IV Ltd., Series 2022-4A, Class SNR, 6.05%, 04/28/2027(c)(i) | 12,002,000 | 11,513,519 | ||||||
| ||||||||
IP Lending VII Ltd., Series 2022-7A, Class SNR, 8.00%, 10/11/2027(c)(i) | 15,459,000 | 15,768,180 | ||||||
| ||||||||
Jimmy John’s Funding LLC, Series 2017-1A, Class A2II, 4.85%, 07/30/2047(c) | 5,533,500 | 5,329,259 | ||||||
|
Principal Amount | Value | |||||||
JP Morgan Mortgage Trust, | ||||||||
Series 2005-A3, Class 1A1, 4.91%, 06/25/2035(l) | $ | 82,439 | $ | 80,769 | ||||
| ||||||||
Series 2005-A5, Class 1A2, 4.39%, 08/25/2035(l) | 75,137 | 70,696 | ||||||
| ||||||||
Series 2007-A4, Class 3A1, 4.35%, 06/25/2037(l) | 336,666 | 257,965 | ||||||
| ||||||||
Series 20153, Class B2, | 3,728,629 | 3,432,729 | ||||||
| ||||||||
Series 2021-LTV2, Class A1, 2.52%, 05/25/2052(c)(l) | 11,993,532 | 9,781,792 | ||||||
| ||||||||
JPMBB Commercial Mortgage Securities Trust, | ||||||||
Series 2013-C17, Class C, 4.73%, 01/15/2047(l) | 230,369 | 224,207 | ||||||
| ||||||||
Series 2015-C31, Class A3, 3.80%, 08/15/2048 | 888,162 | 856,495 | ||||||
| ||||||||
Series 2016-C1, Class B, 4.70%, 03/17/2049(l) | 5,083,000 | 4,847,827 | ||||||
| ||||||||
JPMDB Commercial Mortgage Securities Trust, Series 2020-COR7, Class A5, 2.18%, 05/13/2053 | 6,200,000 | 4,864,001 | ||||||
| ||||||||
KKR CLO 30 Ltd., Series 30A, Class A1R, 6.60% | 11,305,000 | 11,310,539 | ||||||
| ||||||||
Lehman Mortgage Trust, | 90,781 | 63,055 | ||||||
| ||||||||
Life Mortgage Trust, | ||||||||
Series 2021-BMR, Class A, 6.13% (1 mo. Term SOFR + 0.81%), 03/15/2038(c)(h) | 6,679,282 | 6,610,562 | ||||||
| ||||||||
Series 2021-BMR, Class B, 6.31% (1 mo. Term SOFR + 0.99%), 03/15/2038(c)(h) | 10,837,246 | 10,683,655 | ||||||
| ||||||||
Series 2021-BMR, Class C, 6.53% (1 mo. Term SOFR + 1.21%), 03/15/2038(c)(h) | 4,546,237 | 4,471,144 | ||||||
| ||||||||
MAD Mortgage Trust, Series 2017-330M, Class A, 3.19%, | 11,633,000 | 10,835,005 | ||||||
| ||||||||
Madison Park Funding XXXIII Ltd., Series 2019-33A, Class AR, 6.60% (3 mo. Term SOFR + 1.29%), 10/15/2032(c)(h) | 9,247,000 | 9,253,889 | ||||||
| ||||||||
Med Trust, Series 2021-MDLN, Class A, 6.38% (1 mo. Term SOFR + 1.06%), 11/15/2038(c)(h) | 7,936,909 | 7,884,040 | ||||||
| ||||||||
Mello Mortgage Capital Acceptance Trust, | ||||||||
Series 2021-INV2, Class A4, 2.50%, 08/25/2051(c)(l) | 6,744,545 | 5,867,661 | ||||||
| ||||||||
Series 2021-INV3, Class A4, 2.50%, 10/25/2051(c)(l) | 6,569,121 | 5,705,422 | ||||||
| ||||||||
Merrill Lynch Mortgage Investors Trust, | ||||||||
Series 2005-3, Class 3A, 2.39%, 11/25/2035(l) | 313,233 | 286,147 | ||||||
| ||||||||
Series 2005-A5, Class A9, 2.16%, 06/25/2035(l) | 362,981 | 338,458 | ||||||
| ||||||||
MFA Trust, Series 2021-INV2, Class A1, 1.91%, 11/25/2056(c)(l) | 8,502,231 | 7,322,187 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
20 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
| ||||||||
MHP Commercial Mortgage Trust, | ||||||||
Series 2021-STOR, Class A, 6.13% (1 mo. Term SOFR + 0.81%), 07/15/2038(c)(h) | $ | 5,810,000 | $ | 5,762,981 | ||||
| ||||||||
Series 2021-STOR, Class B, 6.33% (1 mo. Term SOFR + 1.01%), 07/15/2038(c)(h) | 4,355,000 | 4,304,275 | ||||||
| ||||||||
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C25, Class B, 4.52%, 10/15/2048(l) | 15,769,000 | 14,834,436 | ||||||
| ||||||||
Morgan Stanley Capital I Trust, | ||||||||
Series 2014-150E, Class C, 4.44%, 09/09/2032(c)(l) | 3,350,000 | 1,980,451 | ||||||
| ||||||||
Series 2019-L2, Class A4, 4.07%, 03/15/2052 | 17,430,000 | 16,334,328 | ||||||
| ||||||||
Series 2019-L3, Class AS, 3.49%, 11/15/2052 | 10,950,000 | 9,618,535 | ||||||
| ||||||||
Natixis Commercial Mortgage Securities Trust, Series 2018-285M, Class E, 3.79%, 11/15/2032(c)(l) | 6,250,000 | 4,031,436 | ||||||
| ||||||||
Neuberger Berman Loan Advisers CLO 24 Ltd., Series 2017-24A, Class AR, 6.59% (3 mo. Term SOFR + 1.28%), 04/19/2030(c)(h) | 9,127,982 | 9,139,291 | ||||||
| ||||||||
New Residential Mortgage Loan Trust, | ||||||||
Series 2019-NQM4, Class A1, 2.49%, 09/25/2059(c)(l) | 1,513,491 | 1,399,176 | ||||||
| ||||||||
Series 2020-NQM1, Class A1, 2.46%, 01/26/2060(c)(l) | 2,486,607 | 2,273,437 | ||||||
| ||||||||
Series 2022-NQM2, Class A1, 3.08%, 03/27/2062(c)(l) | 7,082,249 | 6,396,450 | ||||||
| ||||||||
OBX Trust, | ||||||||
Series 2019-EXP1, Class 1A3, 4.00%, 01/25/2059(c)(l) | 247,926 | 238,500 | ||||||
| ||||||||
Series 2022-NQM1, Class A1, 2.31%, 11/25/2061(c)(l) | 8,918,030 | 7,662,246 | ||||||
| ||||||||
Series 2022-NQM2, Class A1, 2.96%, 01/25/2062(c)(l) | 10,771,931 | 9,818,970 | ||||||
| ||||||||
Series 2022-NQM2, Class A1A, 2.78%, 01/25/2062(c)(n) | 6,722,547 | 6,219,799 | ||||||
| ||||||||
Series 2022-NQM2, Class A1B, 3.38%, 01/25/2062(c)(n) | 7,063,333 | 5,972,557 | ||||||
| ||||||||
Oceanview Mortgage Trust, Series 2021-3, Class A5, 2.50%, 07/25/2051(c)(l) | 7,547,779 | 6,588,723 | ||||||
| ||||||||
OCP CLO Ltd. (Cayman Islands), | ||||||||
Series 2014-7A, Class A1RR, 6.70% (3 mo. Term SOFR + 1.38%), 07/20/2029(c)(h) | 8,916,308 | 8,929,477 | ||||||
| ||||||||
Series 2017-13A, Class A1AR, 6.54% (3 mo. Term SOFR + 1.22%), 07/15/2030(c)(h) | 9,056,727 | 9,069,415 | ||||||
| ||||||||
Series 2020-8RA, Class A1, 6.80% (3 mo. Term SOFR + 1.48%), 01/17/2032(c)(h) | 17,937,000 | 17,956,228 | ||||||
|
Principal Amount | Value | |||||||
| ||||||||
Octagon Investment Partners 31 Ltd., Series 2017-1A, Class AR, 6.63% (3 mo. Term SOFR + 1.31%), 07/20/2030(c)(h) | $ | 11,732,822 | $ | 11,744,989 | ||||
| ||||||||
OHA Loan Funding Ltd., Series 2016-1A, Class AR, 6.84% (3 mo. Term SOFR + 1.52%), 01/20/2033(c)(h) | 10,543,683 | 10,569,009 | ||||||
| ||||||||
One Bryant Park Trust, Series 2019-OBP, Class A, 2.52%, 09/15/2054(c) | 21,801,000 | 18,632,388 | ||||||
| ||||||||
Onslow Bay Mortgage Loan Trust, Series 2021-NQM4, Class A1, 1.96%, 10/25/2061(c)(l) | 10,400,324 | 8,612,886 | ||||||
| ||||||||
PPM CLO 3 Ltd., Series 2019-3A, Class AR, 6.67% (3 mo. Term SOFR + 1.35%), 04/17/2034(c)(h) | 9,626,000 | 9,596,246 | ||||||
| ||||||||
Progress Residential Trust, | ||||||||
Series 2021-SFR10, Class A, 2.39%, 12/17/2040(c) | 7,115,037 | 6,266,373 | ||||||
| ||||||||
Series 2022-SFR5, Class A, 4.45%, 06/17/2039(c) | 9,588,342 | 9,355,206 | ||||||
| ||||||||
Provident Home Equity Loan Trust, Series 2000-2, Class A1, 5.98% (1 mo. Term SOFR + 0.65%), 08/25/2031(h) | 99,695 | 91,283 | ||||||
| ||||||||
Qdoba Funding LLC, Series 2023-1A, Class A2, 8.50%, 09/14/2053(c) | 13,619,000 | 14,113,228 | ||||||
| ||||||||
Race Point VIII CLO Ltd., Series 2013-8A, Class AR2, 6.62% (3 mo. Term SOFR + 1.30%), 02/20/2030(c)(h) | 7,679,935 | 7,699,473 | ||||||
| ||||||||
Residential Mortgage Loan Trust, | ||||||||
Series 2019-3, Class A1, 2.63%, 09/25/2059(c)(l) | 242,435 | 237,163 | ||||||
| ||||||||
Series 2020-1, Class A1, 2.38%, 01/26/2060(c)(l) | 638,936 | 610,214 | ||||||
| ||||||||
RUN Trust, Series 2022-NQM1, Class A1, 4.00%, 03/25/2067(c) | 5,908,859 | 5,631,823 | ||||||
| ||||||||
Sequoia Mortgage Trust, | ||||||||
Series 2013-3, Class A1, 2.00%, 03/25/2043(l) | 347,505 | 285,270 | ||||||
| ||||||||
Series 2013-7, Class A2, 3.00%, 06/25/2043(l) | 270,172 | 235,704 | ||||||
| ||||||||
SG Residential Mortgage Trust, | ||||||||
Series 2022-1, Class A1, 3.17%, 03/27/2062(c)(l) | 12,611,306 | 11,467,985 | ||||||
| ||||||||
Series 2022-1, Class A2, 3.58%, 03/27/2062(c)(l) | 5,297,099 | 4,757,076 | ||||||
| ||||||||
Shellpoint Asset Funding Trust, | 357,247 | 332,284 | ||||||
| ||||||||
Sonic Capital LLC, | ||||||||
Series 2020-1A, Class A2I, 3.85%, 01/20/2050(c) | 9,099,950 | 8,631,067 | ||||||
| ||||||||
Series 2021-1A, Class A2I, 2.19%, 08/20/2051(c) | 5,435,392 | 4,695,751 | ||||||
| ||||||||
Series 2021-1A, Class A2II, 2.64%, 08/20/2051(c) | 5,337,808 | 4,341,020 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
21 | Invesco Core Plus Bond Fund |
Principal Amount | Value | |||||||
| ||||||||
STAR Trust, Series 2021-1, Class A1, 1.22%, 05/25/2065(c)(l) | $ | 4,643,774 | $ | 4,052,127 | ||||
| ||||||||
Starwood Mortgage Residential Trust, | ||||||||
Series 2020-1, Class A1, 2.28%, 02/25/2050(c)(l) | 231,727 | 217,066 | ||||||
| ||||||||
Series 2020-INV1, Class A1, 1.03%, 11/25/2055(c)(l) | 2,073,167 | 1,907,129 | ||||||
| ||||||||
Series 2021-6, Class A1, 1.92%, 11/25/2066(c)(l) | 12,825,078 | 10,664,283 | ||||||
| ||||||||
Series 2022-1, Class A1, 2.45%, 12/25/2066(c)(l) | 9,417,785 | 8,091,875 | ||||||
| ||||||||
Structured Adjustable Rate Mortgage Loan Trust, | ||||||||
Series 2004-12, Class 3A2, 5.93%, 09/25/2034(l) | 139,320 | 134,350 | ||||||
| ||||||||
Series 2004-8, Class 3A, 6.17%, 07/25/2034(l) | 555,348 | 526,014 | ||||||
| ||||||||
Suntrust Alternative Loan Trust, Series 2005-1F, Class 2A8, 6.00%, 12/25/2035 | 79,086 | 71,403 | ||||||
| ||||||||
Textainer Marine Containers VII Ltd., Series 2021-2A, Class A, 2.23%, 04/20/2046(c) | 10,029,360 | 8,892,479 | ||||||
| ||||||||
Thornburg Mortgage Securities Trust, | ||||||||
Series 2003-6, Class A2, 6.44% (1 mo. Term SOFR + 1.11%), 12/25/2033(h) | 168,978 | 159,146 | ||||||
| ||||||||
Series 2005-1, Class A3, 4.66%, 04/25/2045(l) | 330,829 | 311,640 | ||||||
| ||||||||
TICP CLO XV Ltd., Series 2020-15A, Class A, 6.86% (3 mo. Term SOFR + 1.54%), 04/20/2033(c)(h) | 9,701,000 | 9,708,305 | ||||||
| ||||||||
TierPoint Issuer LLC, Series 2023-1A, Class A2, 6.00%, 06/25/2053(c) | 13,378,000 | 12,642,575 | ||||||
| ||||||||
Tricon American Homes Trust, Series 2020-SFR2, Class A, 1.48%, 11/17/2039(c) | 11,608,064 | 10,198,777 | ||||||
| ||||||||
UBS Commercial Mortgage Trust, Series 2019-C16, Class A4, 3.60%, 04/15/2052 | 16,770,000 | 15,231,668 | ||||||
| ||||||||
Verus Securitization Trust, | ||||||||
Series 2020-1, Class A1, 3.42%, 01/25/2060(c)(n) | 1,300,559 | 1,241,563 | ||||||
| ||||||||
Series 2020-1, Class A2, 2.64%, 01/25/2060(c)(n) | 1,644,664 | 1,572,475 | ||||||
| ||||||||
Series 2020-INV1, Class A1, 0.33%, 03/25/2060(c)(l) | 91,256 | 90,603 | ||||||
| ||||||||
Series 2021-1, Class A1B, 1.32%, 01/25/2066(c)(l) | 2,112,866 | 1,837,393 | ||||||
| ||||||||
Series 2021-7, Class A1, 1.83%, 10/25/2066(c)(l) | 10,121,815 | 8,688,404 | ||||||
| ||||||||
Series 2021-R1, Class A1, 0.82%, 10/25/2063(c)(l) | 2,863,313 | 2,591,884 | ||||||
| ||||||||
Series 2022-1, Class A1, 2.72%, 01/25/2067(c)(n) | 7,109,554 | 6,354,599 | ||||||
| ||||||||
Series 2022-3, Class A1, 4.13%, 02/25/2067(c)(n) | 10,854,282 | 10,104,389 | ||||||
| ||||||||
Series 2022-7, Class A1, 5.15%, 07/25/2067(c)(n) | 3,501,661 | 3,476,589 | ||||||
| ||||||||
Series 2022-INV2, Class A1, 6.79%, 10/25/2067(c)(n) | 4,588,559 | 4,621,107 | ||||||
|
Principal Amount | Value | |||||||
| ||||||||
Visio Trust, Series 2020-1R, Class A1, 1.31%, 11/25/2055(c) | $ | 1,991,933 | $ | 1,847,508 | ||||
| ||||||||
WaMu Mortgage Pass-Through Ctfs. Trust, Series 2007- HY2, Class 2A2, 4.61%, 11/25/2036(l) | 186,174 | 160,551 | ||||||
| ||||||||
Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR14, Class A1, 5.95%, 08/25/2035(l) | 81,539 | 77,801 | ||||||
| ||||||||
Wendy’s Funding LLC, | ||||||||
Series 2018-1A, Class A2II, 3.88%, 03/15/2048(c) | 10,574,657 | 9,987,140 | ||||||
| ||||||||
Series 2019-1A, Class A2II, 4.08%, 06/15/2049(c) | 4,949,936 | 4,638,412 | ||||||
| ||||||||
WFRBS Commercial Mortgage Trust, | ||||||||
Series 2012-C9, Class D, 4.72%, 11/15/2045(c)(l) | 31,610 | 30,900 | ||||||
| ||||||||
Series 2014-C23, Class B, 4.39%, 10/15/2057(l) | 4,693,000 | 4,118,080 | ||||||
| ||||||||
Zaxby’s Funding LLC, | 21,419,288 | 18,859,546 | ||||||
| ||||||||
Total Asset-Backed Securities |
| 1,163,522,793 | ||||||
| ||||||||
U.S. Treasury Securities–9.74% |
| |||||||
U.S. Treasury Bills–0.22% | ||||||||
4.79% - 5.29%, 04/18/2024(o)(p) | 10,922,000 | 10,854,034 | ||||||
| ||||||||
U.S. Treasury Bonds–1.54% |
| |||||||
4.50%, 02/15/2044 | 26,459,100 | 26,457,033 | ||||||
| ||||||||
4.75%, 11/15/2053 | 47,629,300 | 50,687,994 | ||||||
| ||||||||
77,145,027 | ||||||||
| ||||||||
U.S. Treasury Notes–7.98% |
| |||||||
2.13%, 11/30/2024 | 8,000,000 | 7,821,222 | ||||||
| ||||||||
4.25%, 01/31/2026 | 84,657,000 | 84,031,994 | ||||||
| ||||||||
4.13%, 02/15/2027 | 30,403,000 | 30,154,788 | ||||||
| ||||||||
4.00%, 01/31/2029 | 117,526,900 | 116,186,359 | ||||||
| ||||||||
4.25%, 02/28/2029 | 10,474,000 | 10,476,042 | ||||||
| ||||||||
4.00%, 01/31/2031 | 5,623,000 | 5,532,505 | ||||||
| ||||||||
4.25%, 02/28/2031 | 1,614,000 | 1,612,235 | ||||||
| ||||||||
4.00%, 02/15/2034 | 144,869,700 | 142,051,532 | ||||||
| ||||||||
397,866,677 | ||||||||
| ||||||||
Total U.S. Treasury Securities |
| 485,865,738 | ||||||
| ||||||||
Shares | ||||||||
Preferred Stocks–1.40% |
| |||||||
Diversified Banks–0.92% |
| |||||||
Citigroup, Inc., 6.25%, Series T, Pfd.(d) | 3,651,000 | 3,644,201 | ||||||
| ||||||||
Citigroup, Inc., 5.00%, Series U, Pfd.(b)(d) | 9,621,000 | 9,520,969 | ||||||
| ||||||||
Citigroup, Inc., 4.00%, Series W, Pfd.(b)(d) | 5,030,000 | 4,773,220 | ||||||
| ||||||||
Wells Fargo & Co., 7.50%, Class A, Series L, Conv. Pfd. | 23,403 | 27,615,540 | ||||||
| ||||||||
45,553,930 | ||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
22 | Invesco Core Plus Bond Fund |
Shares | Value | |||||||
| ||||||||
Diversified Financial Services–0.27% |
| |||||||
Apollo Global Management, Inc., 7.63%, Pfd.(d) | 508,150 | $ | 13,593,012 | |||||
| ||||||||
Investment Banking & Brokerage–0.21% |
| |||||||
Goldman Sachs Group, Inc. (The), 8.44% (3 mo. Term SOFR + 3.14%), Series P, Pfd.(b)(h) | 4,274,000 | 4,274,445 | ||||||
| ||||||||
Morgan Stanley, 6.88%, | 249,737 | 6,343,320 | ||||||
| ||||||||
10,617,765 | ||||||||
| ||||||||
Total Preferred Stocks (Cost $72,183,036) |
| 69,764,707 | ||||||
| ||||||||
Principal Amount | ||||||||
Agency Credit Risk Transfer Notes–0.69% |
| |||||||
Fannie Mae Connecticut Avenue Securities, | ||||||||
Series 2022-R03, Class 1M1, 7.42% (30 Day Average SOFR + 2.10%), 03/25/2042(c)(h) | $ | 9,326,472 | 9,462,373 | |||||
| ||||||||
Series 2022-R04, Class 1M1, 7.32% (30 Day Average SOFR + 2.00%), 03/25/2042(c)(h) | 4,736,232 | 4,802,345 | ||||||
| ||||||||
Series 2023-R02, Class 1M1, 7.62% (30 Day Average SOFR + 2.30%), 01/25/2043(c)(h) | 3,157,156 | 3,228,453 | ||||||
| ||||||||
Freddie Mac, | ||||||||
Series 2022-DNA3, Class M1A, STACR®, 7.32% (30 Day Average SOFR + 2.00%), 04/25/2042(c)(h) | 6,668,462 | 6,756,383 | ||||||
| ||||||||
Series 2022-HQA3, Class M1, STACR®, 7.62% (30 Day Average SOFR + 2.30%), 08/25/2042(c)(h) | 4,285,148 | 4,379,459 | ||||||
| ||||||||
Series 2023-DNA1, Class M1, STACR®, 7.42% (30 Day Average SOFR + 2.10%), 03/25/2043(c)(h) | 2,660,443 | 2,715,247 | ||||||
| ||||||||
Series 2020-DNA5, Class M2, STACR®, 8.12% (30 Day Average SOFR + 2.80%), 10/25/2050(c)(h) | 2,943,281 | 2,986,107 | ||||||
| ||||||||
Total Agency Credit Risk Transfer Notes |
| 34,330,367 | ||||||
| ||||||||
Variable Rate Senior Loan Interests–0.46% |
| |||||||
Gas Utilities–0.05% |
| |||||||
NGL Energy Operating LLC, Term Loan, 9.83%, 02/03/2031 | 2,318,000 | 2,328,872 | ||||||
| ||||||||
Leisure Products–0.06% |
| |||||||
Amer Sports (Finland), Term Loan B, 8.58%, 02/10/2031(i) | 2,877,285 | 2,877,285 | ||||||
| ||||||||
Oil & Gas Storage & Transportation–0.35% |
| |||||||
NFE Atlantic Holdings LLC, Term Loan B, 10.32%, 10/30/2028 | 17,433,000 | 17,487,478 | ||||||
| ||||||||
Total Variable Rate Senior Loan Interests |
| 22,693,635 | ||||||
|
Principal Amount | Value | |||||||||||
| ||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes–0.26% |
| |||||||||||
Integrated Telecommunication Services–0.05% |
| |||||||||||
AT&T, Inc., Series MPLE, 5.10%, 11/25/2048 | CAD | 3,703,000 | $ | 2,548,553 | ||||||||
| ||||||||||||
Investment Banking & Brokerage–0.05% |
| |||||||||||
GTCR W-2 Merger Sub LLC/GTCR W Dutch Finance Sub B.V. (Netherlands), 8.50%, 01/15/2031(c) | GBP | 1,650,000 | 2,246,872 | |||||||||
| ||||||||||||
Movies & Entertainment–0.12% |
| |||||||||||
Netflix, Inc., 3.88%, 11/15/2029(c) | EUR | 5,311,000 | 5,829,150 | |||||||||
| ||||||||||||
Technology Hardware, Storage & Peripherals–0.04% |
| |||||||||||
Apple, Inc., Series MPLE, 2.51%, 08/19/2024 | CAD | 2,974,000 | 2,167,837 | |||||||||
| ||||||||||||
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $12,357,317) |
| 12,792,412 | ||||||||||
| ||||||||||||
Municipal Obligations–0.14% |
| |||||||||||
California (State of) Health Facilities Financing Authority (Social Bonds), |
| |||||||||||
Series 2022, RB, 4.19%, 06/01/2037 |
| $ | 4,000,000 | 3,725,629 | ||||||||
| ||||||||||||
Series 2022, RB, 4.35%, 06/01/2041 |
| 2,980,000 | 2,733,977 | |||||||||
| ||||||||||||
Georgia (State of) Municipal Electric Authority (Plant Vogtle Units 3 & 4), Series 2010 A, RB, 6.66%, 04/01/2057 |
| 521,000 | 587,839 | |||||||||
| ||||||||||||
Total Municipal Obligations |
| 7,047,445 | ||||||||||
| ||||||||||||
Shares | ||||||||||||
Exchange-Traded Funds–0.10% |
| |||||||||||
Invesco High Yield Select ETF(q) |
| 10,000 | 253,291 | |||||||||
| ||||||||||||
Invesco Short Duration Bond ETF(q) |
| 5,853 | 145,213 | |||||||||
| ||||||||||||
Invesco Total Return Bond ETF(q) |
| 100,000 | 4,646,000 | |||||||||
| ||||||||||||
Total Exchange-Traded Funds |
| 5,044,504 | ||||||||||
| ||||||||||||
Common Stocks & Other Equity Interests–0.00% |
| |||||||||||
Agricultural Products & Services–0.00% |
| |||||||||||
Locus Agriculture Solutions, Inc., Wts., expiring 12/31/2032(i) |
| 79 | 0 | |||||||||
| ||||||||||||
Oil & Gas Drilling–0.00% |
| |||||||||||
Vantage Drilling International(r) |
| 95 | 2,660 | |||||||||
| ||||||||||||
Paper & Plastic Packaging Products & Materials–0.00% |
| |||||||||||
WestRock Co. | 65 | 2,944 | ||||||||||
| ||||||||||||
Specialty Chemicals–0.00% |
| |||||||||||
Ingevity Corp.(r) |
| 10 | 457 | |||||||||
| ||||||||||||
Total Common Stocks & Other Equity Interests |
| 6,061 | ||||||||||
| ||||||||||||
Money Market Funds–11.58% |
| |||||||||||
Invesco Government & Agency Portfolio, Institutional Class, 5.24%(q)(s) |
| 202,108,931 | 202,108,931 | |||||||||
| ||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 5.41%(q)(s) |
| 144,311,222 | 144,383,377 | |||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
23 | Invesco Core Plus Bond Fund |
Shares | Value | |||||||
| ||||||||
Money Market Funds–(continued) |
| |||||||
Invesco Treasury Portfolio, Institutional Class, 5.23%(q)(s) | 230,981,635 | $ | 230,981,635 | |||||
| ||||||||
Total Money Market Funds |
| 577,473,943 | ||||||
| ||||||||
Options Purchased–0.03% |
| |||||||
(Cost $1,720,614)(t) |
| 1,587,020 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-125.67% | 6,267,554,453 | |||||||
| ||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds–11.11% |
| |||||||
Invesco Private Government Fund, 5.29%(q)(s)(u) | 152,221,441 | 152,221,441 | ||||||
|
Shares | Value | |||||||
| ||||||||
Money Market Funds–(continued) |
| |||||||
Invesco Private Prime Fund, 5.49%(q)(s)(u) | 401,514,656 | $ | 401,715,414 | |||||
| ||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan |
| 553,936,855 | ||||||
| ||||||||
TOTAL INVESTMENTS IN |
| 6,821,491,308 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES-(36.78)% |
| (1,834,325,552 | ) | |||||
| ||||||||
NET ASSETS-100.00% |
| $ | 4,987,165,756 | |||||
|
Investment Abbreviations: | ||
ARM | - Adjustable Rate Mortgage | |
BDC | - Business Development Company | |
CAD | - Canadian Dollar | |
Conv. | - Convertible | |
Ctfs. | - Certificates | |
ETF | - Exchange-Traded Fund | |
EUR | - Euro | |
GBP | - British Pound Sterling | |
IBOR | - Interbank Offered Rate | |
IO | - Interest Only | |
Pfd. | - Preferred | |
RB | - Revenue Bonds | |
REIT | - Real Estate Investment Trust | |
REMICs | - Real Estate Mortgage Investment Conduits | |
SOFR | - Secured Overnight Financing Rate | |
STACR® | - Structured Agency Credit Risk | |
TBA | - To Be Announced | |
USD | - U.S. Dollar | |
Wts. | - Warrants |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
24 | Invesco Core Plus Bond 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) | All or a portion of this security was out on loan at February 29, 2024. |
(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 29, 2024 was $1,967,742,517, which represented 39.46% of the Fund’s Net Assets. |
(d) | Security issued at a fixed rate for a specific period of time, after which it will convert to a variable rate. |
(e) | Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The aggregate value of these securities at February 29, 2024 was $3,392,038, which represented less than 1% of the Fund’s Net Assets. |
(f) | Zero coupon bond issued at a discount. |
(g) | Perpetual bond with no specified maturity date. |
(h) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 29, 2024. |
(i) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(j) | Interest only security. Principal amount shown is the notional principal and does not reflect the maturity value of the security. |
(k) | Interest only security. Principal amount shown is the notional principal and does not reflect the maturity value of the security. 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 29, 2024. |
(l) | 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 29, 2024. |
(m) | Security purchased on a forward commitment basis. This security is subject to dollar roll transactions. See Note 1P. |
(n) | Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date. |
(o) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1M. |
(p) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
(q) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 29, 2024. |
Value August 31, 2023 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value February 29, 2024 | Dividend Income | |||||||||||||||||||||||||||||
Invesco High Yield Select ETF | $ | 249,082 | $ | - | $ | - | $ | 4,209 | $ | - | $ | 253,291 | $ | 9,474 | |||||||||||||||||||||
Invesco Short Duration Bond ETF | 296,220 | - | (153,073) | 2,044 | 22 | 145,213 | 7,677 | ||||||||||||||||||||||||||||
Invesco Total Return Bond ETF | 4,596,000 | - | - | 50,000 | - | 4,646,000 | 99,425 | ||||||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | |||||||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | 246,646,745 | 322,822,873 | (367,360,687) | - | - | 202,108,931 | 5,514,364 | ||||||||||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 176,146,897 | 230,587,766 | (262,400,491) | 49,811 | (606) | 144,383,377 | 4,061,439 | ||||||||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 281,881,994 | 368,940,427 | (419,840,786) | - | - | 230,981,635 | 6,288,291 | ||||||||||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | |||||||||||||||||||||||||||||||||||
Invesco Private Government Fund | 108,303,142 | 569,120,362 | (525,202,063) | - | - | 152,221,441 | 3,133,874* | ||||||||||||||||||||||||||||
Invesco Private Prime Fund | 275,096,423 | 1,277,510,421 | (1,151,007,141) | (57,221) | 172,932 | 401,715,414 | 8,525,145* | ||||||||||||||||||||||||||||
Total | $ | 1,093,216,503 | $ | 2,768,981,849 | $ | (2,725,964,241) | $ | 48,843 | $ | 172,348 | $ | 1,136,455,302 | $ | 27,639,689 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(r) | Non-income producing security. |
(s) | The rate shown is the 7-day SEC standardized yield as of February 29, 2024. |
(t) | The table below details options purchased. |
(u) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J. |
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 | 05/17/2024 | 146 | USD 5,140.00 | USD 75,044,000 | $1,587,020 | ||||||||||||||||||
|
(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.
25 | 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 2 Year Notes | 1,793 | June-2024 | $ | 367,116,750 | $ | 182,911 | $ | 182,911 | ||||||||||||||||
| ||||||||||||||||||||||||
U.S. Treasury 10 Year Notes | 1,439 | June-2024 | 158,919,562 | 419,456 | 419,456 | |||||||||||||||||||
| ||||||||||||||||||||||||
U.S. Treasury Long Bonds | 538 | June-2024 | 64,156,500 | 444,326 | 444,326 | |||||||||||||||||||
| ||||||||||||||||||||||||
U.S. Treasury Ultra Bonds | 1,395 | June-2024 | 178,385,625 | 1,729,327 | 1,729,327 | |||||||||||||||||||
| ||||||||||||||||||||||||
Subtotal-Long Futures Contracts | 2,776,020 | 2,776,020 | ||||||||||||||||||||||
| ||||||||||||||||||||||||
Short Futures Contracts | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
U.S. Treasury 5 Year Notes | 3,489 | June-2024 | (372,995,906 | ) | (552,867 | ) | (552,867) | |||||||||||||||||
| ||||||||||||||||||||||||
U.S. Treasury 10 Year Ultra Notes | 3,144 | June-2024 | (358,956,375 | ) | (146,157 | ) | (146,157) | |||||||||||||||||
| ||||||||||||||||||||||||
Subtotal-Short Futures Contracts | (699,024 | ) | (699,024) | |||||||||||||||||||||
| ||||||||||||||||||||||||
Total Futures Contracts | $ | 2,076,996 | $ | 2,076,996 | ||||||||||||||||||||
|
Open Forward Foreign Currency Contracts | ||||||||||||||
| ||||||||||||||
Settlement Date | Contract to | Unrealized (Depreciation) | ||||||||||||
Counterparty | Deliver | Receive | ||||||||||||
| ||||||||||||||
Currency Risk | ||||||||||||||
| ||||||||||||||
05/15/2024 | Goldman Sachs International | CAD | 13,132,000 | USD | 9,748,746 | $ | 61,956 | |||||||
| ||||||||||||||
Currency Risk | ||||||||||||||
| ||||||||||||||
05/15/2024 | Goldman Sachs International | EUR | 11,800,000 | USD | 12,736,401 | (54,490) | ||||||||
| ||||||||||||||
Total Forward Foreign Currency Contracts | $ | 7,466 | ||||||||||||
|
Abbreviations:
CAD -Canadian Dollar
EUR -Euro
USD -U.S. Dollar
Portfolio Composition
By security type, based on Total Investments
as of February 29, 2024
U.S. Dollar Denominated Bonds & Notes | 34.45% | |||
| ||||
U.S. Government Sponsored Agency Mortgage-Backed Securities | 22.54 | |||
| ||||
Asset-Backed Securities | 17.06 | |||
| ||||
U.S. Treasury Securities | 7.12 | |||
| ||||
Preferred Stocks | 1.02 | |||
| ||||
Security types each less than 1% of portfolio | 1.22 | |||
| ||||
Money Market Funds | 16.59 | |||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
26 | Invesco Core Plus Bond Fund |
Statement of Assets and Liabilities
February 29, 2024
(Unaudited)
Assets: |
| |||
Investments in unaffiliated securities, at value (Cost $5,821,061,290)* | $ | 5,685,036,006 | ||
| ||||
Investments in affiliates, at value | 1,136,455,302 | |||
| ||||
Other investments: |
| |||
Variation margin receivable – futures contracts | 655,428 | |||
| ||||
Unrealized appreciation on forward foreign currency contracts outstanding | 61,956 | |||
| ||||
Deposits with brokers: |
| |||
Cash collateral – OTC Derivatives | 1,510 | |||
| ||||
Cash collateral – TBA commitments | 7,508,774 | |||
| ||||
Cash | 13,375,122 | |||
| ||||
Foreign currencies, at value | 21,625,287 | |||
| ||||
Receivable for: |
| |||
Investments sold | 349,484,988 | |||
| ||||
Fund shares sold | 8,362,229 | |||
| ||||
Dividends | 3,408,261 | |||
| ||||
Interest | 36,467,309 | |||
| ||||
Investments matured, at value | 301,830 | |||
| ||||
Principal paydowns | 3,067 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 111,884 | |||
| ||||
Other assets | 221,490 | |||
| ||||
Total assets | 7,263,080,443 | |||
| ||||
Liabilities: |
| |||
Other investments: |
| |||
Unrealized depreciation on forward foreign currency contracts outstanding | 54,490 | |||
| ||||
Payable for: |
| |||
Investments purchased | 378,069,304 | |||
| ||||
TBA sales commitment | 1,334,081,012 | |||
| ||||
Dividends | 2,650,279 | |||
| ||||
Fund shares reacquired | 5,667,840 | |||
| ||||
Collateral upon return of securities loaned | 553,994,076 | |||
| ||||
Accrued fees to affiliates | 981,422 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 2,875 | |||
| ||||
Accrued other operating expenses | 277,011 | |||
| ||||
Trustee deferred compensation and retirement plans | 136,378 | |||
| ||||
Total liabilities | 2,275,914,687 | |||
| ||||
Net assets applicable to shares outstanding | $ | 4,987,165,756 | ||
|
Net assets consist of: |
| |||
Shares of beneficial interest | $ | 5,986,682,596 | ||
| ||||
Distributable earnings (loss) | (999,516,840 | ) | ||
| ||||
$ | 4,987,165,756 | |||
| ||||
Net Assets: |
| |||
Class A | $ | 1,275,708,137 | ||
| ||||
Class C | $ | 44,995,449 | ||
| ||||
Class R | $ | 28,935,452 | ||
| ||||
Class Y | $ | 1,119,749,189 | ||
| ||||
Class R5 | $ | 15,220,842 | ||
| ||||
Class R6 | $ | 2,502,556,687 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 140,074,661 | |||
| ||||
Class C | 4,942,103 | |||
| ||||
Class R | 3,178,004 | |||
| ||||
Class Y | 122,867,861 | |||
| ||||
Class R5 | 1,672,012 | |||
| ||||
Class R6 | 275,011,430 | |||
| ||||
Class A: |
| |||
Net asset value per share | $ | 9.11 | ||
| ||||
Maximum offering price per share | $ | 9.51 | ||
| ||||
Class C: |
| |||
Net asset value and offering price per share | $ | 9.10 | ||
| ||||
Class R: |
| |||
Net asset value and offering price per share | $ | 9.10 | ||
| ||||
Class Y: |
| |||
Net asset value and offering price per share | $ | 9.11 | ||
| ||||
Class R5: |
| |||
Net asset value and offering price per share | $ | 9.10 | ||
| ||||
Class R6: |
| |||
Net asset value and offering price per share | $ | 9.10 | ||
|
* | At February 29, 2024, securities with an aggregate value of $535,993,418 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
27 | Invesco Core Plus Bond Fund |
Statement of Operations
For the six months ended February 29, 2024
(Unaudited)
Investment income: | ||||
Interest (net of foreign withholding taxes of $5,645) | $ | 110,189,312 | ||
| ||||
Dividends | 1,638,487 | |||
| ||||
Dividends from affiliates (includes net securities lending income of $482,158) | 16,462,828 | |||
| ||||
Total investment income | 128,290,627 | |||
| ||||
Expenses: | ||||
Advisory fees | 9,359,406 | |||
| ||||
Administrative services fees | 321,821 | |||
| ||||
Custodian fees | 40,542 | |||
| ||||
Distribution fees: | ||||
Class A | 1,522,135 | |||
| ||||
Class C | 226,848 | |||
| ||||
Class R | 69,983 | |||
| ||||
Transfer agent fees – A, C, R and Y | 1,795,624 | |||
| ||||
Transfer agent fees – R5 | 7,280 | |||
| ||||
Transfer agent fees – R6 | 358,827 | |||
| ||||
Trustees’ and officers’ fees and benefits | 33,865 | |||
| ||||
Registration and filing fees | 135,375 | |||
| ||||
Reports to shareholders | 666,018 | |||
| ||||
Professional services fees | 59,163 | |||
| ||||
Taxes | 650 | |||
| ||||
Other | 38,546 | |||
| ||||
Total expenses | 14,636,083 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (1,569,778 | ) | ||
| ||||
Net expenses | 13,066,305 | |||
| ||||
Net investment income | 115,224,322 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | (56,457,312 | ) | ||
| ||||
Affiliated investment securities | 172,348 | |||
| ||||
Foreign currencies | 1,381,003 | |||
| ||||
Forward foreign currency contracts | (903,952 | ) | ||
| ||||
Futures contracts | (13,109,686 | ) | ||
| ||||
Option contracts written | (201,236 | ) | ||
| ||||
(69,118,835 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | 130,877,782 | |||
| ||||
Affiliated investment securities | 48,843 | |||
| ||||
Foreign currencies | 13,912 | |||
| ||||
Forward foreign currency contracts | (223,176 | ) | ||
| ||||
Futures contracts | 5,226,497 | |||
| ||||
135,943,858 | ||||
| ||||
Net realized and unrealized gain | 66,825,023 | |||
| ||||
Net increase in net assets resulting from operations | $ | 182,049,345 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
28 | Invesco Core Plus Bond Fund |
Statement of Changes in Net Assets
For the six months ended February 29, 2024 and the year ended August 31, 2023
(Unaudited)
February 29, 2024 | August 31, 2023 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 115,224,322 | $ | 200,049,243 | ||||
| ||||||||
Net realized gain (loss) | (69,118,835 | ) | (425,402,160 | ) | ||||
| ||||||||
Change in net unrealized appreciation | 135,943,858 | 198,139,791 | ||||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 182,049,345 | (27,213,126 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (28,924,298 | ) | (53,845,475 | ) | ||||
| ||||||||
Class C | (907,983 | ) | (1,892,008 | ) | ||||
| ||||||||
Class R | (630,094 | ) | (1,111,448 | ) | ||||
| ||||||||
Class Y | (25,476,708 | ) | (44,669,184 | ) | ||||
| ||||||||
Class R5 | (364,080 | ) | (665,367 | ) | ||||
| ||||||||
Class R6 | (60,544,407 | ) | (112,518,988 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (116,847,570 | ) | (214,702,470 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | 42,847,669 | 72,965,788 | ||||||
| ||||||||
Class C | (2,952,127 | ) | (5,633,396 | ) | ||||
| ||||||||
Class R | 1,058,839 | 2,945,593 | ||||||
| ||||||||
Class Y | 99,571,121 | 99,521,145 | ||||||
| ||||||||
Class R5 | 662,353 | 1,083,557 | ||||||
| ||||||||
Class R6 | 58,099,704 | 126,964,986 | ||||||
| ||||||||
Net increase in net assets resulting from share transactions | 199,287,559 | 297,847,673 | ||||||
| ||||||||
Net increase in net assets | 264,489,334 | 55,932,077 | ||||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 4,722,676,422 | 4,666,744,345 | ||||||
| ||||||||
End of period | $ | 4,987,165,756 | $ | 4,722,676,422 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
29 | Invesco Core Plus Bond Fund |
(Unaudited)
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 | Return of capital | 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 02/29/24 | $ | 8.98 | $ | 0.21 | $ | 0.13 | $ | 0.34 | $ | (0.21 | ) | $ | - | $ | - | $ | (0.21 | ) | $ | 9.11 | 3.86 | % | $ | 1,275,708 | 0.74 | %(d) | 0.86 | %(d) | 4.69 | %(d) | 229 | % | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 9.45 | 0.38 | (0.44 | ) | (0.06 | ) | (0.41 | ) | - | - | (0.41 | ) | 8.98 | (0.59 | ) | 1,215,588 | 0.74 | 0.83 | 4.19 | 461 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 11.39 | 0.24 | (1.83 | ) | (1.59 | ) | (0.24 | ) | (0.11 | ) | - | (0.35 | ) | 9.45 | (14.19 | ) | 1,203,731 | 0.75 | 0.81 | 2.30 | 321 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 11.61 | 0.19 | 0.17 | 0.36 | (0.22 | ) | (0.36 | ) | - | (0.58 | ) | 11.39 | 3.18 | 1,497,641 | 0.74 | 0.79 | 1.70 | 366 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 11.13 | 0.29 | 0.51 | 0.80 | (0.32 | ) | - | - | (0.32 | ) | 11.61 | 7.29 | 1,364,591 | 0.75 | 0.82 | 2.55 | 329 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 10.53 | 0.36 | 0.62 | 0.98 | (0.32 | ) | - | (0.06 | ) | (0.38 | ) | 11.13 | 9.57 | 1,079,416 | 0.74 | 0.84 | 3.41 | 250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 8.98 | 0.18 | 0.12 | 0.30 | (0.18 | ) | - | - | (0.18 | ) | 9.10 | 3.37 | 44,995 | 1.49 | (d) | 1.61 | (d) | 3.94 | (d) | 229 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 9.45 | 0.31 | (0.44 | ) | (0.13 | ) | (0.34 | ) | - | - | (0.34 | ) | 8.98 | (1.34 | ) | 47,344 | 1.49 | 1.58 | 3.44 | 461 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 11.38 | 0.16 | (1.81 | ) | (1.65 | ) | (0.17 | ) | (0.11 | ) | - | (0.28 | ) | 9.45 | (14.76 | ) | 55,695 | 1.50 | 1.56 | 1.55 | 321 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 11.61 | 0.11 | 0.16 | 0.27 | (0.14 | ) | (0.36 | ) | - | (0.50 | ) | 11.38 | 2.32 | 90,811 | 1.49 | 1.54 | 0.95 | 366 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 11.12 | 0.20 | 0.52 | 0.72 | (0.23 | ) | - | - | (0.23 | ) | 11.61 | 6.59 | 107,350 | 1.50 | 1.57 | 1.80 | 329 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 10.53 | 0.28 | 0.61 | 0.89 | (0.24 | ) | - | (0.06 | ) | (0.30 | ) | 11.12 | 8.67 | 87,046 | 1.49 | 1.59 | 2.66 | 250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 8.98 | 0.20 | 0.12 | 0.32 | (0.20 | ) | - | - | (0.20 | ) | 9.10 | 3.62 | 28,935 | 0.99 | (d) | 1.11 | (d) | 4.44 | (d) | 229 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 9.45 | 0.36 | (0.44 | ) | (0.08 | ) | (0.39 | ) | - | - | (0.39 | ) | 8.98 | (0.84 | ) | 27,489 | 0.99 | 1.08 | 3.94 | 461 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 11.38 | 0.21 | (1.81 | ) | (1.60 | ) | (0.22 | ) | (0.11 | ) | - | (0.33 | ) | 9.45 | (14.33 | ) | 25,914 | 1.00 | 1.06 | 2.05 | 321 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 11.61 | 0.16 | 0.16 | 0.32 | (0.19 | ) | (0.36 | ) | - | (0.55 | ) | 11.38 | 2.83 | 29,466 | 0.99 | 1.04 | 1.45 | 366 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 11.12 | 0.26 | 0.52 | 0.78 | (0.29 | ) | - | - | (0.29 | ) | 11.61 | 7.12 | 23,193 | 1.00 | 1.07 | 2.30 | 329 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 10.53 | 0.33 | 0.61 | 0.94 | (0.29 | ) | - | (0.06 | ) | (0.35 | ) | 11.12 | 9.21 | 17,598 | 0.99 | 1.09 | 3.16 | 250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 8.99 | 0.22 | 0.12 | 0.34 | (0.22 | ) | - | - | (0.22 | ) | 9.11 | 3.88 | 1,119,749 | 0.49 | (d) | 0.61 | (d) | 4.94 | (d) | 229 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 9.46 | 0.41 | (0.44 | ) | (0.03 | ) | (0.44 | ) | - | - | (0.44 | ) | 8.99 | (0.33 | ) | 1,007,180 | 0.49 | 0.58 | 4.44 | 461 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 11.40 | 0.27 | (1.83 | ) | (1.56 | ) | (0.27 | ) | (0.11 | ) | - | (0.38 | ) | 9.46 | (13.95 | ) | 961,066 | 0.50 | 0.56 | 2.55 | 321 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 11.62 | 0.22 | 0.17 | 0.39 | (0.25 | ) | (0.36 | ) | - | (0.61 | ) | 11.40 | 3.43 | 1,407,185 | 0.49 | 0.54 | 1.95 | 366 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 11.14 | 0.31 | 0.51 | 0.82 | (0.34 | ) | - | - | (0.34 | ) | 11.62 | 7.56 | 1,170,121 | 0.50 | 0.57 | 2.80 | 329 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 10.54 | 0.39 | 0.62 | 1.01 | (0.35 | ) | - | (0.06 | ) | (0.41 | ) | 11.14 | 9.84 | 892,952 | 0.49 | 0.59 | 3.66 | 250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 8.98 | 0.22 | 0.12 | 0.34 | (0.22 | ) | - | - | (0.22 | ) | 9.10 | 3.88 | 15,221 | 0.49 | (d) | 0.55 | (d) | 4.94 | (d) | 229 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 9.45 | 0.41 | (0.45 | ) | (0.04 | ) | (0.43 | ) | - | - | (0.43 | ) | 8.98 | (0.34 | ) | 14,364 | 0.49 | 0.53 | 4.44 | 461 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 11.38 | 0.26 | (1.81 | ) | (1.55 | ) | (0.27 | ) | (0.11 | ) | - | (0.38 | ) | 9.45 | (13.89 | ) | 14,000 | 0.50 | 0.52 | 2.55 | 321 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 11.61 | 0.22 | 0.16 | 0.38 | (0.25 | ) | (0.36 | ) | - | (0.61 | ) | 11.38 | 3.35 | 13,274 | 0.49 | 0.51 | 1.95 | 366 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 11.12 | 0.31 | 0.52 | 0.83 | (0.34 | ) | - | - | (0.34 | ) | 11.61 | 7.65 | 11,555 | 0.50 | 0.54 | 2.80 | 329 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 10.53 | 0.39 | 0.61 | 1.00 | (0.35 | ) | - | (0.06 | ) | (0.41 | ) | 11.12 | 9.75 | 7,586 | 0.49 | 0.54 | 3.66 | 250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 8.97 | 0.22 | 0.13 | 0.35 | (0.22 | ) | - | - | (0.22 | ) | 9.10 | 4.01 | 2,502,557 | 0.47 | (d) | 0.48 | (d) | 4.96 | (d) | 229 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 9.45 | 0.41 | (0.45 | ) | (0.04 | ) | (0.44 | ) | - | - | (0.44 | ) | 8.97 | (0.41 | ) | 2,410,711 | 0.45 | 0.46 | 4.48 | 461 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 11.38 | 0.27 | (1.81 | ) | (1.54 | ) | (0.28 | ) | (0.11 | ) | - | (0.39 | ) | 9.45 | (13.85 | ) | 2,406,339 | 0.45 | 0.45 | 2.60 | 321 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 11.60 | 0.23 | 0.17 | 0.40 | (0.26 | ) | (0.36 | ) | - | (0.62 | ) | 11.38 | 3.51 | 2,948,067 | 0.41 | 0.42 | 2.03 | 366 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 11.12 | 0.32 | 0.51 | 0.83 | (0.35 | ) | - | - | (0.35 | ) | 11.60 | 7.62 | 2,746,570 | 0.45 | 0.45 | 2.85 | 329 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 10.52 | 0.39 | 0.62 | 1.01 | (0.35 | ) | - | (0.06 | ) | (0.41 | ) | 11.12 | 9.91 | 2,159,063 | 0.44 | 0.45 | 3.71 | 250 |
(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) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
30 | Invesco Core Plus Bond Fund |
February 29, 2024
(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. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
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. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices 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, and their value may be adjusted accordingly. 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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). 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 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.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
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 mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or
31 | Invesco Core Plus Bond Fund |
other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally 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.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
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 an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, 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 based on relative net assets of Class R5 and Class R6. 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 the relative value of settled shares. |
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. | Securities Purchased on a When-Issued and Delayed Delivery Basis - The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date. |
J. | Securities Lending - The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “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 |
32 | Invesco Core Plus Bond Fund |
of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from 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. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 29, 2024, the Fund paid the Adviser $612 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliates on the Statement of Operations.
K. | Foreign Currency Translations - Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at 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.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. 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.
L. | 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 exchange of the two currencies on the settlement date, 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).
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 for hedging 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.
M. | Futures Contracts - The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between 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 instrument or asset. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities. |
N. | Call Options Purchased and Written - The Fund may write 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. An uncovered call option exists without the ownership of the underlying security. Options written by the Fund normally will have expiration dates between three and nine months |
33 | Invesco Core Plus Bond Fund |
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. |
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.
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. The risk in writing an uncovered call option is that the Fund may incur significant losses if the value of the written security exceeds the exercise price of the option.
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.
O. | 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. |
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.
P. | Dollar Rolls and Forward Commitment Transactions - The Fund may enter into dollar roll transactions to enhance the Fund’s performance. The Fund executes its dollar roll transactions in the to be announced (“TBA”) market whereby the Fund makes a forward commitment to purchase a security and, instead of accepting delivery, the position is offset by the sale of the security with a simultaneous agreement to repurchase at a future date. |
The Fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions increase the Fund’s portfolio turnover rate.
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.
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. This practice does not apply to securities pledged as collateral for securities lending transactions. |
S. | Other Risks - Obligations of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the U.S. Government, which could affect the Fund’s ability to recover should they default. No assurance can be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so. |
Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. 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 29, 2024, the effective advisory fee rate 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, 2024, 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,
34 | Invesco Core Plus Bond Fund |
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, 2024. 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.
Further, the Adviser has contractually agreed, through at least June 30, 2025, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the six months ended February 29, 2024, the Adviser waived advisory fees of $340,293 and reimbursed class level expenses of $638,728, $23,600, $14,663, $536,877, $3,649 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 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
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 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, 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 Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 29, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 29, 2024, IDI advised the Fund that IDI retained $65,782 in front-end sales commissions from the sale of Class A shares and $7,840 and $1,485 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. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of February 29, 2024. 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. Dollar Denominated Bonds & Notes | $ | – | $ | 2,326,760,488 | $ | 23,437,487 | $2,350,197,975 | |||||||
U.S. Government Sponsored Agency Mortgage-Backed Securities | – | 1,537,227,853 | – | 1,537,227,853 | ||||||||||
Asset-Backed Securities | – | 1,135,105,853 | 28,416,940 | 1,163,522,793 | ||||||||||
U.S. Treasury Securities | – | 485,865,738 | – | 485,865,738 | ||||||||||
Preferred Stocks | 47,551,872 | 22,212,835 | – | 69,764,707 | ||||||||||
Agency Credit Risk Transfer Notes | – | 34,330,367 | – | 34,330,367 | ||||||||||
Variable Rate Senior Loan Interests | – | 19,816,350 | 2,877,285 | 22,693,635 | ||||||||||
Non-U.S. Dollar Denominated Bonds & Notes | – | 12,792,412 | – | 12,792,412 | ||||||||||
Municipal Obligations | – | 7,047,445 | – | 7,047,445 | ||||||||||
Exchange-Traded Funds | 5,044,504 | – | – | 5,044,504 | ||||||||||
Common Stocks & Other Equity Interests | 6,061 | – | 0 | 6,061 |
35 | Invesco Core Plus Bond Fund |
Level 1 | Level 2 | Level 3 | Total | |||||||||||
| ||||||||||||||
Money Market Funds | $ | 577,473,943 | $ | 553,936,855 | $ | – | $1,131,410,798 | |||||||
| ||||||||||||||
Options Purchased | 1,587,020 | – | – | 1,587,020 | ||||||||||
| ||||||||||||||
Total Investments in Securities | 631,663,400 | 6,135,096,196 | 54,731,712 | 6,821,491,308 | ||||||||||
| ||||||||||||||
Other Investments - Assets* | ||||||||||||||
| ||||||||||||||
Investments Matured | – | 301,830 | – | 301,830 | ||||||||||
| ||||||||||||||
Futures Contracts | 2,776,020 | – | – | 2,776,020 | ||||||||||
| ||||||||||||||
Forward Foreign Currency Contracts | – | 61,956 | – | 61,956 | ||||||||||
| ||||||||||||||
2,776,020 | 363,786 | – | 3,139,806 | |||||||||||
| ||||||||||||||
Other Investments - Liabilities* | ||||||||||||||
| ||||||||||||||
Futures Contracts | (699,024 | ) | – | – | (699,024) | |||||||||
| ||||||||||||||
Forward Foreign Currency Contracts | – | (54,490 | ) | – | (54,490) | |||||||||
| ||||||||||||||
(699,024 | ) | (54,490 | ) | – | (753,514) | |||||||||
| ||||||||||||||
Total Other Investments | 2,076,996 | 309,296 | – | 2,386,292 | ||||||||||
| ||||||||||||||
Total Investments | $ | 633,740,396 | $ | 6,135,405,492 | $ | 54,731,712 | $6,823,877,600 | |||||||
|
* | Forward foreign currency contracts and futures contracts are valued at unrealized appreciation (depreciation). Investments matured is shown at value. |
NOTE 4–Derivative Investments
The Fund may enter into an 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.
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 29, 2024:
Value | ||||||||||||||||
|
| |||||||||||||||
Currency | Equity | Interest | ||||||||||||||
Derivative Assets | Risk | Risk | Rate Risk | Total | ||||||||||||
| ||||||||||||||||
Unrealized appreciation on futures contracts – Exchange-Traded(a) | $ – | $ | – | $ | 2,776,020 | $ | 2,776,020 | |||||||||
| ||||||||||||||||
Unrealized appreciation on forward foreign currency contracts outstanding | 61,956 | – | – | 61,956 | ||||||||||||
| ||||||||||||||||
Options purchased, at value – Exchange-Traded(b) | – | 1,587,020 | – | 1,587,020 | ||||||||||||
| ||||||||||||||||
Total Derivative Assets | 61,956 | 1,587,020 | 2,776,020 | 4,424,996 | ||||||||||||
| ||||||||||||||||
Derivatives not subject to master netting agreements | – | (1,587,020 | ) | (2,776,020 | ) | (4,363,040 | ) | |||||||||
| ||||||||||||||||
Total Derivative Assets subject to master netting agreements | $61,956 | $ | – | $ | – | $ | 61,956 | |||||||||
| ||||||||||||||||
Value | ||||||||||||||||
|
| |||||||||||||||
Currency | Interest | |||||||||||||||
Derivative Liabilities | Risk | Rate Risk | Total | |||||||||||||
| ||||||||||||||||
Unrealized depreciation on futures contracts –Exchange-Traded(a) | $ – | $(699,024) | $(699,024 | ) | ||||||||||||
| ||||||||||||||||
Unrealized depreciation on forward foreign currency contracts outstanding | (54,490) | – | (54,490 | ) | ||||||||||||
| ||||||||||||||||
Total Derivative Liabilities | (54,490) | (699,024) | (753,514 | ) | ||||||||||||
| ||||||||||||||||
Derivatives not subject to master netting agreements | – | 699,024 | 699,024 | |||||||||||||
| ||||||||||||||||
Total Derivative Liabilities subject to master netting agreements | $(54,490) | $ – | $ (54,490 | ) | ||||||||||||
|
(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 29, 2024.
Financial | Financial | |||||||||||
Derivative | Derivative | Collateral | ||||||||||
Assets | Liabilities | (Received)/Pledged | ||||||||||
Forward Foreign | Forward Foreign | Net Value of | Net | |||||||||
Counterparty | Currency Contracts | Currency Contracts | Derivatives | Non-Cash | Cash | Amount | ||||||
| ||||||||||||
Goldman Sachs International | $61,956 | $(54,490) | $7,466 | $– | $– | $7,466 | ||||||
|
36 | Invesco Core Plus Bond Fund |
Effect of Derivative Investments for the six months ended February 29, 2024
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 | Equity | Interest | ||||||||||||||
Risk | Risk | Rate Risk | Total | |||||||||||||
| ||||||||||||||||
Realized Gain (Loss): | ||||||||||||||||
Forward foreign currency contracts | $ | (903,952 | ) | $ | - | $ | - | $ | (903,952 | ) | ||||||
| ||||||||||||||||
Futures contracts | - | - | (13,109,686 | ) | (13,109,686 | ) | ||||||||||
| ||||||||||||||||
Options purchased(a) | - | 5,244,816 | - | 5,244,816 | ||||||||||||
| ||||||||||||||||
Options written | - | (201,236 | ) | – | (201,236 | ) | ||||||||||
| ||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation): | ||||||||||||||||
Forward foreign currency contracts | (223,176 | ) | - | – | (223,176 | ) | ||||||||||
| ||||||||||||||||
Futures contracts | - | - | 5,226,497 | 5,226,497 | ||||||||||||
| ||||||||||||||||
Options purchased(a) | - | 377,805 | – | 377,805 | ||||||||||||
| ||||||||||||||||
Total | $ | (1,127,128 | ) | $ | 5,421,385 | $ | (7,883,189 | ) | $ | (3,588,932 | ) | |||||
|
(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 | Equity | Equity | ||||||||||||||
Foreign Currency | Futures | Options | Options | |||||||||||||
Contracts | Contracts | Purchased | Written | |||||||||||||
| ||||||||||||||||
Average notional value | $23,351,359 | $1,492,313,052 | $66,643,833 | $43,837,500 | ||||||||||||
| ||||||||||||||||
Average contracts | – | – | 141 | 95 | ||||||||||||
|
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 29, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $11,968.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund 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 SSB, the custodian bank. Such balances, if any at period end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 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 fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2023, as follows:
Capital Loss Carryforward* | ||||||||||||
| ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
| ||||||||||||
Not subject to expiration | $ | 483,863,797 | $ | 306,228,717 | $ | 790,092,514 | ||||||
|
* | Capital loss carryforward 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. |
37 | Invesco Core Plus Bond Fund |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 29, 2024 was $2,635,033,818 and $2,470,986,067, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
| ||||
Aggregate unrealized appreciation of investments | $ | 46,012,281 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (185,510,859 | ) | ||
| ||||
Net unrealized appreciation (depreciation) of investments | $ | (139,498,578 | ) | |
|
Cost of investments for tax purposes is $6,963,376,178.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
February 29, 2024(a) | August 31, 2023 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 16,616,994 | $ | 149,454,793 | 28,785,198 | $ | 262,484,547 | ||||||||||
| ||||||||||||||||
Class C | 602,337 | 5,383,003 | 1,172,591 | 10,736,154 | ||||||||||||
| ||||||||||||||||
Class R | 575,963 | 5,147,185 | 889,433 | 8,136,487 | ||||||||||||
| ||||||||||||||||
Class Y | 39,865,035 | 359,462,180 | 66,119,597 | 606,456,207 | ||||||||||||
| ||||||||||||||||
Class R5 | 240,252 | 2,163,463 | 244,753 | 2,245,682 | ||||||||||||
| ||||||||||||||||
Class R6 | 29,363,112 | 263,518,450 | 54,450,561 | 497,141,060 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 2,811,069 | 25,181,701 | 5,166,836 | 47,116,744 | ||||||||||||
| ||||||||||||||||
Class C | 86,925 | 778,251 | 176,852 | 1,612,433 | ||||||||||||
| ||||||||||||||||
Class R | 69,641 | 623,707 | 121,152 | 1,104,496 | ||||||||||||
| ||||||||||||||||
Class Y | 1,912,688 | 17,154,904 | 3,201,829 | 29,212,939 | ||||||||||||
| ||||||||||||||||
Class R5 | 40,642 | 363,839 | 72,971 | 664,906 | ||||||||||||
| ||||||||||||||||
Class R6 | 6,471,501 | 57,932,317 | 11,856,400 | 107,986,171 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 269,606 | 2,404,941 | 424,180 | 3,868,465 | ||||||||||||
| ||||||||||||||||
Class C | (269,647 | ) | (2,404,941 | ) | (424,224 | ) | (3,868,465 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (14,969,963 | ) | (134,193,766 | ) | (26,363,942 | ) | (240,503,968 | ) | ||||||||
| ||||||||||||||||
Class C | (750,402 | ) | (6,708,440 | ) | (1,545,819 | ) | (14,113,518 | ) | ||||||||
| ||||||||||||||||
Class R | (528,994 | ) | (4,712,053 | ) | (691,090 | ) | (6,295,390 | ) | ||||||||
| ||||||||||||||||
Class Y | (30,973,264 | ) | (277,045,963 | ) | (58,844,200 | ) | (536,148,001 | ) | ||||||||
| ||||||||||||||||
Class R5 | (208,962 | ) | (1,864,949 | ) | (199,271 | ) | (1,827,031 | ) | ||||||||
| ||||||||||||||||
Class R6 | (29,436,719 | ) | (263,351,063 | ) | (52,434,871 | ) | (478,162,245 | ) | ||||||||
| ||||||||||||||||
Net increase in share activity | 21,787,814 | $ | 199,287,559 | 32,178,936 | $ | 297,847,673 | ||||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 58% 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. |
38 | 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, 2023 through February 29, 2024.
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 (09/01/23) | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Expense Ratio | |||||||||
Ending Account Value (02/29/24)1 | Expenses Paid During Period2 | Ending Account Value (02/29/24) | Expenses Paid During Period2 | |||||||||
Class A | $1,000.00 | $1,038.60 | $3.75 | $1,021.18 | $3.72 | 0.74% | ||||||
Class C | 1,000.00 | 1,034.80 | 7.54 | 1,017.45 | 7.47 | 1.49 | ||||||
Class R | 1,000.00 | 1,037.40 | 5.02 | 1,019.94 | 4.97 | 0.99 | ||||||
Class Y | 1,000.00 | 1,038.80 | 2.48 | 1,022.43 | 2.46 | 0.49 | ||||||
Class R5 | 1,000.00 | 1,038.80 | 2.48 | 1,022.43 | 2.46 | 0.49 | ||||||
Class R6 | 1,000.00 | 1,040.10 | 2.38 | 1,022.53 | 2.36 | 0.47 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2023 through February 29, 2024, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
39 | Invesco Core Plus Bond Fund |
A Special Joint Meeting (“Meeting”) of Shareholders of AIM Counselor Series Trust (Invesco Counselor Series Trust), a Delaware statutory trust (“Trust”), was held on January 16, 2024. The Meeting was held for the following purpose:
(1) | Elect 14 trustees to the Board of Trustees of the Trust, each of whom will serve until his or her successor is duly elected and qualified. |
The results of the voting on the above matter were as follows:
Matter | Votes For | Votes Against/Withheld | ||||||||
| ||||||||||
(1)* | Beth Ann Brown | 3,109,848,785.61 | 65,706,470.15 | |||||||
Carol Deckbar | 3,109,186,378.07 | 66,368,877.70 | ||||||||
Cynthia Hostetler | 3,108,148,647.37 | 67,406,608.40 | ||||||||
Dr. Eli Jones | 3,106,962,123.35 | 68,593,132.42 | ||||||||
Elizabeth Krentzman | 3,109,153,762.02 | 66,401,493.75 | ||||||||
Jeffrey H. Kupor | 3,109,094,174.85 | 66,461,080.92 | ||||||||
Anthony J. LaCava, Jr. | 3,107,453,603.09 | 68,101,652.67 | ||||||||
James Liddy | 3,108,418,832.17 | 67,136,423.60 | ||||||||
Dr. Prema Mathai-Davis | 3,100,922,564.57 | 74,632,691.20 | ||||||||
Joel W. Motle | 3,104,496,522.60 | 71,058,733.17 | ||||||||
Teresa M. Ressel | 3,109,248,693.76 | 66,306,562.01 | ||||||||
Douglas Sharp | 3,108,681,578.09 | 66,873,677.67 | ||||||||
Robert C. Troccoli | 3,104,038,320.81 | 71,516,934.96 | ||||||||
Daniel S. Vandivort | 3,106,373,978.14 | 69,181,277.62 |
* | Proposal 1 required approval by a combined vote of all the portfolios of AIM Counselor Series Trust (Invesco Counselor Series Trust). |
40 | Invesco Core Plus Bond Fund |
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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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, 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/corporate/about-us/esg. 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. This 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 number(s): 811-09913 and 333-36074 | Invesco Distributors, Inc. | CPB-SAR-1 |
Semiannual Report to Shareholders | February 29, 2024 |
Invesco Discovery Fund
Nasdaq:
A: OPOCX ∎ C: ODICX ∎ R: ODINX ∎ Y: ODIYX ∎ R5: DIGGX ∎ R6: ODIIX
2 | Fund Performance | |
4 | Schedule of Investments | |
7 | Financial Statements | |
10 | Financial Highlights | |
11 | Notes to Financial Statements | |
16 | Fund Expenses | |
17 | Proxy Results |
Beginning in July 2024, amendments adopted by the Securities and Exchange Commission will substantially impact the design, content, and delivery of shareholder reports. These newly designed shareholder reports will highlight key fund information in a clear and concise format and must be mailed to each shareholder that has not elected to receive the reports electronically. Other information, including financial statements, will no longer be included in the shareholder report but will be available at invesco.com/reports, delivered upon request, and filed on a semi-annual basis on Form N-CSR.
If you would like to receive shareholder reports and other communications electronically instead of by mail, you may make that request 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. If you do not make this request or enroll in e-delivery, you will receive future shareholder reports and other communications by mail.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is 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, 8/31/23 to 2/29/24, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 14.55 | % | ||
Class C Shares | 14.11 | |||
Class R Shares | 14.39 | |||
Class Y Shares | 14.68 | |||
Class R5 Shares | 14.80 | |||
Class R6 Shares | 14.77 | |||
Russell 2000 Growth Index▼ | 10.21 | |||
Russell 2000 Index▼ | 8.97 | |||
S&P 500 Index▼ | 13.93 | |||
Source(s): ▼RIMES Technologies Corp. |
| |||
The S&P 500® Index is an unmanaged index considered representative of the US stock market. |
| |||
The Russell 2000® Growth Index is an unmanaged index considered representative of small-cap growth stocks. The Russell 2000 Growth Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. |
| |||
The Russell 2000® Index is an unmanaged index considered representative of small-cap stocks. The Russell 2000 Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. |
| |||
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 visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
2 | Invesco Discovery Fund |
Average Annual Total Returns |
| |||
As of 2/29/24, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (9/11/86) | 10.65 | % | ||
10 Years | 9.54 | |||
5 Years | 10.70 | |||
1 Year | 14.03 | |||
Class C Shares | ||||
Inception (10/2/95) | 8.41 | % | ||
10 Years | 9.50 | |||
5 Years | 11.11 | |||
1 Year | 18.75 | |||
Class R Shares | ||||
Inception (3/1/01) | 8.53 | % | ||
10 Years | 9.88 | |||
5 Years | 11.66 | |||
1 Year | 20.35 | |||
Class Y Shares | ||||
Inception (6/1/94) | 9.51 | % | ||
10 Years | 10.43 | |||
5 Years | 12.23 | |||
1 Year | 20.95 | |||
Class R5 Shares | ||||
10 Years | 10.34 | % | ||
5 Years | 12.32 | |||
1 Year | 21.16 | |||
Class R6 Shares | ||||
Inception (1/27/12) | 13.46 | % | ||
10 Years | 10.61 | |||
5 Years | 12.39 | |||
1 Year | 21.12 |
Effective May 24, 2019, Class A, Class C, Class R, Class Y and Class I shares of the Oppenheimer Discovery Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y and Class R6 shares, respectively, of the Invesco Oppenheimer Discovery Fund. The Fund was subsequently renamed the Invesco Discovery Fund (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class A, Class C, Class R, Class Y and Class R6 shares are those for Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of the predecessor fund’s Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
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 a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 | Invesco Discovery Fund |
February 29, 2024
(Unaudited)
Shares | Value | |||||||
| ||||||||
Common Stocks & Other Equity Interests–99.21% |
| |||||||
Aerospace & Defense–2.96% |
| |||||||
AAR Corp.(b) | 490,613 | $ | 32,763,136 | |||||
| ||||||||
Curtiss-Wright Corp. | 271,808 | 64,220,076 | ||||||
| ||||||||
Hexcel Corp. | 429,693 | 31,994,941 | ||||||
| ||||||||
128,978,153 | ||||||||
| ||||||||
Application Software–8.26% |
| |||||||
Altair Engineering, Inc., Class A(b) | 637,434 | 54,232,885 | ||||||
| ||||||||
Braze, Inc., Class A(b) | 930,064 | 52,920,642 | ||||||
| ||||||||
Confluent, Inc., Class A(b) | 637,463 | 21,590,872 | ||||||
| ||||||||
DoubleVerify Holdings, Inc.(b) | 819,332 | 25,309,165 | ||||||
| ||||||||
Freshworks, Inc., Class A(b) | 1,286,727 | 26,300,700 | ||||||
| ||||||||
Guidewire Software, Inc.(b) | 451,585 | 53,892,154 | ||||||
| ||||||||
Informatica, Inc., Class A(b) | 1,317,192 | 42,914,115 | ||||||
| ||||||||
Sprout Social, Inc., Class A(b) | 686,124 | 42,416,186 | ||||||
| ||||||||
SPS Commerce, Inc.(b) | 215,388 | 39,881,242 | ||||||
| ||||||||
359,457,961 | ||||||||
| ||||||||
Asset Management & Custody Banks–2.21% |
| |||||||
Cohen & Steers, Inc. | 133,913 | 9,849,301 | ||||||
| ||||||||
Hamilton Lane, Inc., Class A | 750,951 | 86,246,722 | ||||||
| ||||||||
96,096,023 | ||||||||
| ||||||||
Automotive Parts & Equipment–1.31% |
| |||||||
Modine Manufacturing Co.(b) | 635,674 | 57,026,315 | ||||||
| ||||||||
Biotechnology–2.86% | ||||||||
Blueprint Medicines Corp.(b) | 112,516 | 10,522,496 | ||||||
| ||||||||
Cytokinetics, Inc.(b) | 354,406 | 25,602,289 | ||||||
| ||||||||
Halozyme Therapeutics, Inc.(b) | 462,515 | 18,412,722 | ||||||
| ||||||||
SpringWorks Therapeutics, Inc.(b) | 268,322 | 13,217,542 | ||||||
| ||||||||
Twist Bioscience Corp.(b) | 424,405 | 16,674,873 | ||||||
| ||||||||
Ultragenyx Pharmaceutical, Inc.(b) | 228,165 | 11,800,694 | ||||||
| ||||||||
Vaxcyte, Inc.(b) | 248,724 | 18,360,806 | ||||||
| ||||||||
Viking Therapeutics, Inc.(b) | 130,143 | 10,027,518 | ||||||
| ||||||||
124,618,940 | ||||||||
| ||||||||
Broadline Retail–0.75% |
| |||||||
Ollie’s Bargain Outlet Holdings, | 404,990 | 32,468,048 | ||||||
| ||||||||
Building Products–2.60% | ||||||||
AAON, Inc. | 558,424 | 46,896,447 | ||||||
| ||||||||
AZEK Co., Inc. (The)(b) | 908,211 | 43,694,031 | ||||||
| ||||||||
Trex Co., Inc.(b) | 243,656 | 22,357,875 | ||||||
| ||||||||
112,948,353 | ||||||||
| ||||||||
Cargo Ground Transportation–2.34% |
| |||||||
Saia, Inc.(b) | 176,839 | 101,753,161 | ||||||
| ||||||||
Casinos & Gaming–1.39% | ||||||||
Red Rock Resorts, Inc., Class A | 1,044,809 | 60,588,474 | ||||||
| ||||||||
Commercial & Residential Mortgage Finance–1.33% |
| |||||||
Essent Group Ltd. | 518,941 | 27,799,669 | ||||||
| ||||||||
Mr. Cooper Group, Inc.(b) | 419,377 | 29,893,193 | ||||||
| ||||||||
57,692,862 | ||||||||
|
Shares | Value | |||||||
| ||||||||
Construction & Engineering–4.01% |
| |||||||
Comfort Systems USA, Inc. | 375,952 | $ | 114,939,805 | |||||
| ||||||||
EMCOR Group, Inc. | 190,366 | 59,683,548 | ||||||
| ||||||||
174,623,353 | ||||||||
| ||||||||
Construction Machinery & Heavy Transportation Equipment– 0.63% |
| |||||||
Federal Signal Corp. | 333,336 | 27,303,552 | ||||||
| ||||||||
Construction Materials–1.03% | ||||||||
Eagle Materials, Inc. | 177,027 | 44,885,196 | ||||||
| ||||||||
Education Services–2.30% |
| |||||||
Duolingo, Inc.(b) | 418,091 | 99,923,749 | ||||||
| ||||||||
Electrical Components & Equipment–0.65% |
| |||||||
Nextracker, Inc., Class A(b) | 504,084 | 28,349,684 | ||||||
| ||||||||
Electronic Equipment & Instruments–1.16% |
| |||||||
Novanta, Inc.(b) | 292,229 | 50,538,083 | ||||||
| ||||||||
Electronic Manufacturing Services–1.80% |
| |||||||
Celestica, Inc. (Canada)(b) | 1,146,978 | 48,780,974 | ||||||
| ||||||||
Fabrinet (Thailand)(b) | 136,550 | 29,436,084 | ||||||
| ||||||||
78,217,058 | ||||||||
| ||||||||
Environmental & Facilities Services–3.18% |
| |||||||
Casella Waste Systems, Inc., Class A(b) | 578,233 | 52,098,793 | ||||||
| ||||||||
Clean Harbors, Inc.(b) | 474,264 | 86,363,475 | ||||||
| ||||||||
138,462,268 | ||||||||
| ||||||||
Health Care Equipment–3.12% |
| |||||||
Glaukos Corp.(b) | 391,404 | 34,674,480 | ||||||
| ||||||||
Integer Holdings Corp.(b) | 287,833 | 31,745,102 | ||||||
| ||||||||
iRhythm Technologies, Inc.(b) | 84,630 | 10,041,350 | ||||||
| ||||||||
Shockwave Medical, Inc.(b) | 133,117 | 34,726,232 | ||||||
| ||||||||
TransMedics Group, Inc.(b) | 300,094 | 24,487,670 | ||||||
| ||||||||
135,674,834 | ||||||||
| ||||||||
Health Care Facilities–3.88% |
| |||||||
Acadia Healthcare Co., Inc.(b) | 801,129 | 66,854,215 | ||||||
| ||||||||
Encompass Health Corp. | 692,486 | 51,520,959 | ||||||
| ||||||||
Surgery Partners, Inc.(b) | 1,626,746 | 50,477,928 | ||||||
| ||||||||
168,853,102 | ||||||||
| ||||||||
Health Care Services–0.84% |
| |||||||
BrightSpring Health Services, Inc.(b) | 974,767 | 8,763,155 | ||||||
| ||||||||
RadNet, Inc.(b) | 729,523 | 27,619,741 | ||||||
| ||||||||
36,382,896 | ||||||||
| ||||||||
Health Care Supplies–1.56% |
| |||||||
Lantheus Holdings, Inc.(b) | 281,795 | 18,423,757 | ||||||
| ||||||||
Merit Medical Systems, Inc.(b) | 511,183 | 38,952,145 | ||||||
| ||||||||
RxSight, Inc.(b) | 192,394 | 10,498,940 | ||||||
| ||||||||
67,874,842 | ||||||||
| ||||||||
Health Care Technology–0.30% |
| |||||||
Evolent Health, Inc., Class A(b) | 380,181 | 12,891,938 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 | Invesco Discovery Fund |
Shares | Value | |||||||
| ||||||||
Homebuilding–3.21% |
| |||||||
Meritage Homes Corp. | 198,876 | $ | 31,354,790 | |||||
| ||||||||
Taylor Morrison Home Corp., Class A(b) | 834,906 | 47,264,029 | ||||||
| ||||||||
TopBuild Corp.(b) | 151,499 | 60,960,167 | ||||||
| ||||||||
139,578,986 | ||||||||
| ||||||||
Industrial Machinery & Supplies & Components–1.98% |
| |||||||
Crane Co. | 264,164 | 32,111,776 | ||||||
| ||||||||
ESAB Corp. | 545,985 | 54,118,033 | ||||||
| ||||||||
86,229,809 | ||||||||
| ||||||||
Industrial REITs–0.46% |
| |||||||
Terreno Realty Corp. | 313,801 | 20,177,404 | ||||||
| ||||||||
Investment Banking & Brokerage–1.67% |
| |||||||
Evercore, Inc., Class A | 388,310 | 72,645,035 | ||||||
| ||||||||
IT Consulting & Other Services–0.58% |
| |||||||
Endava PLC, ADR | 676,666 | 25,151,675 | ||||||
| ||||||||
Life Sciences Tools & Services–3.96% |
| |||||||
10X Genomics, Inc., Class A(b) | 227,957 | 10,631,915 | ||||||
| ||||||||
Medpace Holdings, Inc.(b) | 279,297 | 111,026,143 | ||||||
| ||||||||
Repligen Corp.(b) | 260,584 | 50,550,690 | ||||||
| ||||||||
172,208,748 | ||||||||
| ||||||||
Managed Health Care–1.24% |
| |||||||
HealthEquity, Inc.(b) | 465,087 | 38,420,837 | ||||||
| ||||||||
Progyny, Inc.(b) | 426,137 | 15,562,523 | ||||||
| ||||||||
53,983,360 | ||||||||
| ||||||||
Oil & Gas Equipment & Services–2.04% |
| |||||||
TechnipFMC PLC (United Kingdom) | 2,005,930 | 43,508,622 | ||||||
| ||||||||
Weatherford International PLC(b) | 441,559 | 45,308,369 | ||||||
| ||||||||
88,816,991 | ||||||||
| ||||||||
Oil & Gas Exploration & Production–1.87% |
| |||||||
Matador Resources Co. | 686,288 | 43,339,087 | ||||||
| ||||||||
Northern Oil and Gas, Inc. | 1,063,232 | 37,989,280 | ||||||
| ||||||||
81,328,367 | ||||||||
| ||||||||
Packaged Foods & Meats–0.50% |
| |||||||
Freshpet, Inc.(b) | 192,012 | 21,703,116 | ||||||
| ||||||||
Personal Care Products–3.22% |
| |||||||
BellRing Brands, Inc.(b) | 588,494 | 33,514,733 | ||||||
| ||||||||
e.l.f. Beauty, Inc.(b) | 511,510 | 106,665,181 | ||||||
| ||||||||
140,179,914 | ||||||||
| ||||||||
Pharmaceuticals–0.46% |
| |||||||
Intra-Cellular Therapies, Inc.(b) | 286,913 | 19,946,192 | ||||||
| ||||||||
Property & Casualty Insurance–1.36% |
| |||||||
Kinsale Capital Group, Inc. | 114,775 | 59,244,559 | ||||||
| ||||||||
Research & Consulting Services–1.35% |
| |||||||
Parsons Corp.(b) | 728,538 | 58,727,448 | ||||||
| ||||||||
Restaurants–4.60% |
| |||||||
CAVA Group, Inc.(b)(c) | 305,186 | 17,825,914 | ||||||
| ||||||||
Shake Shack, Inc., Class A(b) | 340,100 | 36,159,432 | ||||||
| ||||||||
Texas Roadhouse, Inc. | 366,546 | 54,750,976 | ||||||
| ||||||||
Wingstop, Inc. | 261,044 | 91,639,496 | ||||||
| ||||||||
200,375,818 | ||||||||
|
Shares | Value | |||||||
| ||||||||
Semiconductor Materials & Equipment–1.51% |
| |||||||
Onto Innovation, Inc.(b) | 355,808 | $ | 65,525,601 | |||||
| ||||||||
Semiconductors–6.42% |
| |||||||
Allegro MicroSystems, Inc. | 1,159,495 | 36,512,498 | ||||||
| ||||||||
Credo Technology Group Holding Ltd.(b) | 1,567,042 | 33,754,085 | ||||||
| ||||||||
Lattice Semiconductor Corp.(b) | 742,855 | 56,910,121 | ||||||
| ||||||||
MACOM Technology Solutions Holdings, Inc.(b) | 488,371 | 43,137,810 | ||||||
| ||||||||
Rambus, Inc.(b) | 527,328 | 31,238,911 | ||||||
| ||||||||
Silicon Laboratories, Inc.(b) | 311,650 | 42,864,341 | ||||||
| ||||||||
Synaptics, Inc.(b) | 349,734 | 35,008,373 | ||||||
| ||||||||
279,426,139 | ||||||||
| ||||||||
Soft Drinks & Non-alcoholic Beverages–0.75% |
| |||||||
Celsius Holdings, Inc.(b) | 399,544 | 32,610,781 | ||||||
| ||||||||
Specialty Chemicals–0.72% |
| |||||||
Element Solutions, Inc. | 1,342,041 | 31,537,964 | ||||||
| ||||||||
Steel–2.25% |
| |||||||
ATI, Inc.(b) | 1,108,915 | 54,536,440 | ||||||
| ||||||||
Carpenter Technology Corp. | 668,254 | 43,202,621 | ||||||
| ||||||||
97,739,061 | ||||||||
| ||||||||
Systems Software–6.16% |
| |||||||
CyberArk Software Ltd.(b) | 308,063 | 81,254,697 | ||||||
| ||||||||
GitLab, Inc., Class A(b) | 1,082,199 | 78,048,192 | ||||||
| ||||||||
JFrog Ltd. (Israel)(b) | 1,266,954 | 56,746,869 | ||||||
| ||||||||
Varonis Systems, Inc.(b) | 1,028,080 | 52,226,464 | ||||||
| ||||||||
268,276,222 | ||||||||
| ||||||||
Trading Companies & Distributors–2.43% |
| |||||||
Applied Industrial Technologies, Inc. | 272,797 | 51,801,422 | ||||||
| ||||||||
H&E Equipment Services, Inc. | 955,213 | 53,959,983 | ||||||
| ||||||||
105,761,405 | ||||||||
| ||||||||
Total Common Stocks & Other Equity Interests |
| 4,316,783,440 | ||||||
| ||||||||
Money Market Funds–0.93% | ||||||||
Invesco Government & Agency Portfolio, Institutional Class, 5.24%(d)(e) | 14,171,072 | 14,171,072 | ||||||
| ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 5.41%(d)(e) | 10,118,821 | 10,123,881 | ||||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 5.23%(d)(e) | 16,195,511 | 16,195,511 | ||||||
| ||||||||
Total Money Market Funds |
| 40,490,464 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES |
| 4,357,273,904 | ||||||
| ||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds–0.30% | ||||||||
Invesco Private Government Fund, 5.29%(d)(e)(f) | 3,691,538 | 3,691,538 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Discovery Fund |
Shares | Value | |||||||
| ||||||||
Money Market Funds–(continued) | ||||||||
Invesco Private Prime Fund, | 9,487,779 | $ | 9,492,523 | |||||
| ||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan | 13,184,061 | |||||||
| ||||||||
TOTAL INVESTMENTS IN |
| 4,370,457,965 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES–(0.44)% |
| (19,130,504 | ) | |||||
| ||||||||
NET ASSETS–100.00% | $ | 4,351,327,461 | ||||||
|
Investment Abbreviations: | ||
ADR | – American Depositary Receipt | |
REIT | – Real Estate Investment Trust |
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at February 29, 2024. |
(d) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 29, 2024. |
Value August 31, 2023 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain | Value February 29, 2024 | Dividend Income | |||||||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | |||||||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ | 20,168,870 | $ | 281,504,440 | $ | (287,502,238) | $ | - | $ | - | $ | 14,171,072 | $ | 862,236 | |||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 14,395,120 | 201,074,600 | (205,358,741) | 2,070 | 10,832 | 10,123,881 | 634,947 | ||||||||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 23,050,137 | 321,719,360 | (328,573,986) | - | - | 16,195,511 | 984,944 | ||||||||||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | |||||||||||||||||||||||||||||||||||
Invesco Private Government Fund | 3,676,446 | 46,657,554 | (46,642,462) | - | - | 3,691,538 | 56,337* | ||||||||||||||||||||||||||||
Invesco Private Prime Fund | 9,453,716 | 83,628,409 | (83,591,613) | 228 | 1,783 | 9,492,523 | 162,874* | ||||||||||||||||||||||||||||
Total | $ | 70,744,289 | $ | 934,584,363 | $ | (951,669,040) | $ | 2,298 | $ | 12,615 | $ | 53,674,525 | $ | 2,701,338 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(e) | The rate shown is the 7-day SEC standardized yield as of February 29, 2024. |
(f) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
Portfolio Composition
By sector, based on Net Assets
as of February 29, 2024
Information Technology | 25.89% | |||
| ||||
Industrials | 22.14 | |||
| ||||
Health Care | 18.21 | |||
| ||||
Consumer Discretionary | 13.56 | |||
| ||||
Financials | 6.57 | |||
| ||||
Consumer Staples | 4.47 | |||
| ||||
Materials | 4.00 | |||
| ||||
Energy | 3.91 | |||
| ||||
Real Estate | 0.46 | |||
| ||||
Money Market Funds Plus Other Assets Less Liabilities | 0.79 | |||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Discovery Fund |
Statement of Assets and Liabilities
February 29, 2024
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value (Cost $3,056,558,495)* | $ | 4,316,783,440 | ||
| ||||
Investments in affiliated money market funds, at value (Cost $53,672,228) | 53,674,525 | |||
| ||||
Cash | 1,509,079 | |||
| ||||
Receivable for: | ||||
Investments sold | 36,701,814 | |||
| ||||
Fund shares sold | 5,656,108 | |||
| ||||
Dividends | 2,289,364 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 151,274 | |||
| ||||
Other assets | 59,892 | |||
| ||||
Total assets | 4,416,825,496 | |||
| ||||
Liabilities: | ||||
Payable for: | ||||
Investments purchased | 47,194,142 | |||
| ||||
Fund shares reacquired | 3,302,201 | |||
| ||||
Collateral upon return of securities loaned | 13,184,125 | |||
| ||||
Accrued fees to affiliates | 1,411,201 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 37,616 | |||
| ||||
Accrued other operating expenses | 174,465 | |||
| ||||
Trustee deferred compensation and retirement plans | 194,285 | |||
| ||||
Total liabilities | 65,498,035 | |||
| ||||
Net assets applicable to shares outstanding | $ | 4,351,327,461 | ||
| ||||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 3,163,401,172 | ||
| ||||
Distributable earnings | 1,187,926,289 | |||
| ||||
$ | 4,351,327,461 | |||
|
Net Assets: | ||||
Class A | $ | 1,523,647,792 | ||
| ||||
Class C | $ | 30,370,159 | ||
| ||||
Class R | $ | 42,537,058 | ||
| ||||
Class Y | $ | 1,694,561,754 | ||
| ||||
Class R5 | $ | 2,315,820 | ||
| ||||
Class R6 | $ | 1,057,894,878 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 16,486,360 | |||
| ||||
Class C | 674,156 | |||
| ||||
Class R | 536,869 | |||
| ||||
Class Y | 14,828,811 | |||
| ||||
Class R5 | 24,588 | |||
| ||||
Class R6 | 8,939,953 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 92.42 | ||
| ||||
Maximum offering price per share | $ | 97.80 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 45.05 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 79.23 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 114.27 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 94.18 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 118.33 | ||
|
* | At February 29, 2024, security with a value of $13,266,897 was on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Discovery Fund |
Statement of Operations
For the six months ended February 29, 2024
(Unaudited)
Investment income: | ||||
Dividends | $ | 8,644,035 | ||
| ||||
Dividends from affiliated money market funds (includes net securities lending income of $619,766) | 3,101,893 | |||
| ||||
Total investment income | 11,745,928 | |||
| ||||
Expenses: | ||||
Advisory fees | 11,031,768 | |||
| ||||
Administrative services fees | 269,728 | |||
| ||||
Custodian fees | 13,105 | |||
| ||||
Distribution fees: | ||||
Class A | 1,578,042 | |||
| ||||
Class C | 136,795 | |||
| ||||
Class R | 95,542 | |||
| ||||
Transfer agent fees – A, C, R and Y | 2,504,776 | |||
| ||||
Transfer agent fees – R5 | 213 | |||
| ||||
Transfer agent fees – R6 | 131,313 | |||
| ||||
Trustees’ and officers’ fees and benefits | 40,585 | |||
| ||||
Registration and filing fees | 82,048 | |||
| ||||
Reports to shareholders | 390,274 | |||
| ||||
Professional services fees | 42,568 | |||
| ||||
Other | 27,201 | |||
| ||||
Total expenses | 16,343,958 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (96,480 | ) | ||
| ||||
Net expenses | 16,247,478 | |||
| ||||
Net investment income (loss) | (4,501,550 | ) | ||
| ||||
Realized and unrealized gain from: | ||||
Net realized gain from: | ||||
Unaffiliated investment securities | 156,952,541 | |||
| ||||
Affiliated investment securities | 12,615 | |||
| ||||
156,965,156 | ||||
| ||||
Change in net unrealized appreciation of: | ||||
Unaffiliated investment securities | 398,070,109 | |||
| ||||
Affiliated investment securities | 2,298 | |||
| ||||
398,072,407 | ||||
| ||||
Net realized and unrealized gain | 555,037,563 | |||
| ||||
Net increase in net assets resulting from operations | $ | 550,536,013 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Discovery Fund |
Statement of Changes in Net Assets
For the six months ended February 29, 2024 and the year ended August 31, 2023
(Unaudited)
February 29, | August 31, | |||||||
2024 | 2023 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | (4,501,550 | ) | $ | (11,353,865 | ) | ||
| ||||||||
Net realized gain (loss) | 156,965,156 | (885,161 | ) | |||||
| ||||||||
Change in net unrealized appreciation | 398,072,407 | 257,794,844 | ||||||
| ||||||||
Net increase in net assets resulting from operations | 550,536,013 | 245,555,818 | ||||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (63,734,678 | ) | (120,045,922 | ) | ||||
| ||||||||
Class C | (2,216,915 | ) | (5,877,866 | ) | ||||
| ||||||||
Class R | (3,544,993 | ) | (3,108,459 | ) | ||||
| ||||||||
Class Y | (7,671,622 | ) | (138,581,797 | ) | ||||
| ||||||||
Class R5 | 723,794 | 126,866 | ||||||
| ||||||||
Class R6 | 87,523,671 | 199,582,949 | ||||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | 11,079,257 | (67,904,229 | ) | |||||
| ||||||||
Net increase in net assets | 561,615,270 | 177,651,589 | ||||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 3,789,712,191 | 3,612,060,602 | ||||||
| ||||||||
End of period | $ | 4,351,327,461 | $ | 3,789,712,191 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Discovery Fund |
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||
expenses | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||
to average | expenses | |||||||||||||||||||||||||||||||||||||||||||||||
Net gains | net assets | to average net | Ratio of net | |||||||||||||||||||||||||||||||||||||||||||||
(losses) | with | assets without | investment | |||||||||||||||||||||||||||||||||||||||||||||
Net asset | Net | on securities | Distributions | fee waivers | fee waivers | income | ||||||||||||||||||||||||||||||||||||||||||
value, | investment | (both | Total from | from net | Net asset | Net assets, | and/or | and/or | (loss) | |||||||||||||||||||||||||||||||||||||||
beginning | income | realized and | investment | realized | value, end | end of period | expenses | expenses | to average | Portfolio | ||||||||||||||||||||||||||||||||||||||
of period | (loss)(a) | unrealized) | operations | gains | of period | Total return(b) | (000’s omitted) | absorbed | absorbed(c) | net assets | turnover (d) | |||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | $ 80.68 | $(0.16 | ) | $ 11.90 | $ 11.74 | $ – | $ 92.42 | 14.55 | %(e) | $1,523,648 | 1.06 | %(e)(f) | 1.06 | %(e)(f) | (0.43 | )%(e)(f) | 47 | % | ||||||||||||||||||||||||||||||
Year ended 08/31/23 | 75.57 | (0.36 | ) | 5.47 | 5.11 | – | 80.68 | 6.76 | (e) | 1,394,517 | 1.03 | (e) | 1.03 | (e) | (0.48 | )(e) | 83 | |||||||||||||||||||||||||||||||
Year ended 08/31/22 | 124.56 | (0.49 | ) | (27.15 | ) | (27.64 | ) | (21.35 | ) | 75.57 | (26.13 | )(e) | 1,425,847 | 1.02 | (e) | 1.02 | (e) | (0.54 | )(e) | 84 | ||||||||||||||||||||||||||||
Year ended 08/31/21 | 101.13 | (0.85 | ) | 36.59 | 35.74 | (12.31 | ) | 124.56 | 37.24 | (e) | 2,090,984 | 1.01 | (e) | 1.01 | (e) | (0.74 | )(e) | 61 | ||||||||||||||||||||||||||||||
Year ended 08/31/20 | 84.02 | (0.59 | ) | 22.93 | 22.34 | (5.23 | ) | 101.13 | 28.07 | (e) | 1,656,602 | 1.05 | (e) | 1.05 | (e) | (0.71 | )(e) | 76 | ||||||||||||||||||||||||||||||
Eleven months ended 08/31/19 | 94.78 | (0.50 | ) | 1.69 | 1.19 | (11.95 | ) | 84.02 | 4.57 | 1,432,064 | 1.08 | (f) | 1.08 | (f) | (0.70 | )(f) | 83 | |||||||||||||||||||||||||||||||
Year ended 09/30/18 | 81.76 | (0.65 | ) | 23.33 | 22.68 | (9.66 | ) | 94.78 | 30.77 | 1,442,859 | 1.07 | 1.07 | (0.76 | ) | 91 | |||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 39.48 | (0.23 | ) | 5.80 | 5.57 | – | 45.05 | 14.11 | 30,370 | 1.82 | (f) | 1.82 | (f) | (1.19 | )(f) | 47 | ||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 37.26 | (0.46 | ) | 2.68 | 2.22 | – | 39.48 | 5.96 | 28,808 | 1.79 | 1.79 | (1.24 | ) | 83 | ||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 73.13 | (0.63 | ) | (13.89 | ) | (14.52 | ) | (21.35 | ) | 37.26 | (26.68 | ) | 33,135 | 1.78 | 1.78 | (1.30 | ) | 84 | ||||||||||||||||||||||||||||||
Year ended 08/31/21 | 64.09 | (1.03 | ) | 22.38 | 21.35 | (12.31 | ) | 73.13 | 36.20 | 56,388 | 1.78 | 1.78 | (1.51 | ) | 61 | |||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 55.50 | (0.79 | ) | 14.61 | 13.82 | (5.23 | ) | 64.09 | 27.08 | 74,315 | 1.82 | 1.82 | (1.48 | ) | 76 | |||||||||||||||||||||||||||||||||
Eleven months ended 08/31/19 | 67.90 | (0.70 | ) | 0.25 | (0.45 | ) | (11.95 | ) | 55.50 | 3.84 | 78,075 | 1.84 | (f) | 1.84 | (f) | (1.47 | )(f) | 83 | ||||||||||||||||||||||||||||||
Year ended 09/30/18 | 61.61 | (0.94 | ) | 16.89 | 15.95 | (9.66 | ) | 67.90 | 29.78 | 159,027 | 1.83 | 1.83 | (1.52 | ) | 91 | |||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 69.27 | (0.23 | ) | 10.19 | 9.96 | – | 79.23 | 14.38 | 42,537 | 1.32 | (f) | 1.32 | (f) | (0.69 | )(f) | 47 | ||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 65.06 | (0.48 | ) | 4.69 | 4.21 | – | 69.27 | 6.47 | 40,864 | 1.29 | 1.29 | (0.74 | ) | 83 | ||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 110.57 | (0.64 | ) | (23.52 | ) | (24.16 | ) | (21.35 | ) | 65.06 | (26.31 | ) | 41,445 | 1.28 | 1.28 | (0.80 | ) | 84 | ||||||||||||||||||||||||||||||
Year ended 08/31/21 | 91.16 | (1.03 | ) | 32.75 | 31.72 | (12.31 | ) | 110.57 | 36.89 | 64,908 | 1.28 | 1.28 | (1.01 | ) | 61 | |||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 76.43 | (0.74 | ) | 20.70 | 19.96 | (5.23 | ) | 91.16 | 27.72 | 53,981 | 1.32 | 1.32 | (0.98 | ) | 76 | |||||||||||||||||||||||||||||||||
Eleven months ended 08/31/19 | 87.70 | (0.62 | ) | 1.30 | 0.68 | (11.95 | ) | 76.43 | 4.32 | 53,737 | 1.33 | (f) | 1.33 | (f) | (0.96 | )(f) | 83 | |||||||||||||||||||||||||||||||
Year ended 09/30/18 | 76.52 | (0.81 | ) | 21.65 | 20.84 | (9.66 | ) | 87.70 | 30.43 | 54,734 | 1.33 | 1.33 | (1.02 | ) | 91 | |||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 99.65 | (0.09 | ) | 14.71 | 14.62 | – | 114.27 | 14.67 | 1,694,562 | 0.82 | (f) | 0.82 | (f) | (0.19 | )(f) | 47 | ||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 93.12 | (0.22 | ) | 6.75 | 6.53 | – | 99.65 | 7.01 | 1,490,868 | 0.79 | 0.79 | (0.24 | ) | 83 | ||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 147.99 | (0.33 | ) | (33.19 | ) | (33.52 | ) | (21.35 | ) | 93.12 | (25.94 | ) | 1,532,285 | 0.78 | 0.78 | (0.30 | ) | 84 | ||||||||||||||||||||||||||||||
Year ended 08/31/21 | 117.95 | (0.69 | ) | 43.04 | 42.35 | (12.31 | ) | 147.99 | 37.56 | 1,769,717 | 0.78 | 0.78 | (0.51 | ) | 61 | |||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 96.93 | (0.46 | ) | 26.71 | 26.25 | (5.23 | ) | 117.95 | 28.37 | 1,316,860 | 0.82 | 0.82 | (0.48 | ) | 76 | |||||||||||||||||||||||||||||||||
Eleven months ended 08/31/19 | 106.92 | (0.38 | ) | 2.34 | 1.96 | (11.95 | ) | 96.93 | 4.80 | 882,530 | 0.84 | (f) | 0.84 | (f) | (0.47 | )(f) | 83 | |||||||||||||||||||||||||||||||
Year ended 09/30/18 | 90.84 | (0.51 | ) | 26.25 | 25.74 | (9.66 | ) | 106.92 | 31.07 | 791,784 | 0.84 | 0.84 | (0.53 | ) | 91 | |||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 82.05 | 0.01 | 12.12 | 12.13 | – | 94.18 | 14.79 | 2,316 | 0.61 | (f) | 0.61 | (f) | 0.02 | (f) | 47 | |||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 76.48 | (0.09 | ) | 5.66 | 5.57 | – | 82.05 | 7.28 | 1,364 | 0.68 | 0.68 | (0.13 | ) | 83 | ||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 125.62 | (0.28 | ) | (27.51 | ) | (27.79 | ) | (21.35 | ) | 76.48 | (26.01 | ) | 1,139 | 0.71 | 0.71 | (0.23 | ) | 84 | ||||||||||||||||||||||||||||||
Year ended 08/31/21 | 101.62 | (0.52 | ) | 36.83 | 36.31 | (12.31 | ) | 125.62 | 37.67 | 15,580 | 0.72 | 0.72 | (0.45 | ) | 61 | |||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 84.11 | (0.27 | ) | 23.01 | 22.74 | (5.23 | ) | 101.62 | 28.54 | 15,413 | 0.68 | 0.68 | (0.34 | ) | 76 | |||||||||||||||||||||||||||||||||
Period ended 08/31/19(g) | 77.56 | (0.08 | ) | 6.63 | 6.55 | – | 84.11 | 8.44 | 11 | 0.71 | (f) | 0.71 | (f) | (0.34 | )(f) | 83 | ||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 103.11 | (0.02 | ) | 15.24 | 15.22 | – | 118.33 | 14.76 | 1,057,895 | 0.67 | (f) | 0.67 | (f) | (0.04 | )(f) | 47 | ||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 96.23 | (0.10 | ) | 6.98 | 6.88 | – | 103.11 | 7.15 | 833,290 | 0.66 | 0.66 | (0.11 | ) | 83 | ||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 152.02 | (0.19 | ) | (34.25 | ) | (34.44 | ) | (21.35 | ) | 96.23 | (25.85 | ) | 578,210 | 0.65 | 0.65 | (0.17 | ) | 84 | ||||||||||||||||||||||||||||||
Year ended 08/31/21 | 120.70 | (0.50 | ) | 44.13 | 43.63 | (12.31 | ) | 152.02 | 37.78 | 553,738 | 0.63 | 0.63 | (0.36 | ) | 61 | |||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 98.92 | (0.30 | ) | 27.31 | 27.01 | (5.23 | ) | 120.70 | 28.58 | 329,915 | 0.65 | 0.65 | (0.31 | ) | 76 | |||||||||||||||||||||||||||||||||
Eleven months ended 08/31/19 | 108.66 | (0.25 | ) | 2.46 | 2.21 | (11.95 | ) | 98.92 | 4.96 | 269,645 | 0.67 | (f) | 0.67 | (f) | (0.30 | )(f) | 83 | |||||||||||||||||||||||||||||||
Year ended 09/30/18 | 92.03 | (0.35 | ) | 26.64 | 26.29 | (9.66 | ) | 108.66 | 31.29 | 254,704 | 0.67 | 0.67 | (0.36 | ) | 91 |
(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) | Does not include estimated acquired fund fees from underlying funds of 0.00% for the eleven months ended August 31, 2019 and the years ended September 30, 2019 and 2018, respectively. |
(d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.24% for the six months ending February 29, 2024 and years ended August 31, 2023 and 2022 and 0.23% for the years ended August 31, 2021 and 2020. |
(f) | Annualized. |
(g) | Commencement date after the close of business on May 24, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Discovery Fund |
February 29, 2024
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco 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 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 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 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. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices 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, and their value may be adjusted accordingly. 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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). 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 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.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
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 mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally 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.
11 | Invesco Discovery Fund |
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
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 an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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. 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
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 based on relative net assets of Class R5 and Class R6. 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. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of |
12 | Invesco Discovery Fund |
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.
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 29, 2024, the Fund paid the Adviser $47,381 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. 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 $200 million | 0.750 | % | ||
Next $200 million | 0.720 | % | ||
Next $200 million | 0.690 | % | ||
Next $200 million | 0.660 | % | ||
Next $700 million | 0.600 | % | ||
Next $3.5 billion | 0.580 | % | ||
Over $5 billion | 0.550 | % |
* | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the six months ended February 29, 2024, the effective advisory fee rate incurred by the Fund was 0.60%.
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. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (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). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has agreed, for an indefinite period, 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 the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least June 30, 2025, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended February 29, 2024, the Adviser waived advisory fees of $49,268.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
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 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, 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 Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 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 Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 29, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 29, 2024, IDI advised the Fund that IDI retained $25,888 in front-end sales commissions from the sale of Class A shares and $0 and $42 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the six months ended February 29, 2024, the Fund incurred $47,519 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.
13 | Invesco Discovery 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. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of February 29, 2024. 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 | $ | 4,316,783,440 | $ | – | $– | $ | 4,316,783,440 | |||||||||||||||||||||
Money Market Funds | 40,490,464 | 13,184,061 | – | 53,674,525 | ||||||||||||||||||||||||
Total Investments | $ | 4,357,273,904 | $ | 13,184,061 | $– | $ | 4,370,457,965 |
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 29, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $47,212.
NOTE 5–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees 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 at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 7–Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from 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 fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2023, as follows:
Capital Loss Carryforward* | ||||||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||||||
Not subject to expiration | $ | 202,077,967 | $– | $ | 202,077,967 |
* | Capital loss carryforward 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. |
14 | Invesco Discovery Fund |
NOTE 8–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 29, 2024 was $1,773,502,712 and $1,738,513,567, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
| ||||
Aggregate unrealized appreciation of investments | $1,304,926,565 | |||
| ||||
Aggregate unrealized (depreciation) of investments | (59,691,675 | ) | ||
| ||||
Net unrealized appreciation of investments | $1,245,234,890 | |||
|
Cost of investments for tax purposes is $3,125,223,075.
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended February 29, 2024(a) | Year ended August 31, 2023 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 341,906 | $ | 27,154,888 | 820,338 | $ | 62,017,183 | ||||||||||
| ||||||||||||||||
Class C | 42,781 | 1,653,715 | 83,171 | 3,101,262 | ||||||||||||
| ||||||||||||||||
Class R | 22,552 | 1,555,306 | 58,327 | 3,778,805 | ||||||||||||
| ||||||||||||||||
Class Y | 2,408,342 | 242,127,096 | 4,789,861 | 445,426,604 | ||||||||||||
| ||||||||||||||||
Class R5 | 11,976 | 1,051,933 | 6,070 | 462,884 | ||||||||||||
| ||||||||||||||||
Class R6 | 1,788,170 | 182,633,474 | 3,484,168 | 336,163,469 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 21,490 | 1,740,693 | 38,869 | 2,932,479 | ||||||||||||
| ||||||||||||||||
Class C | (44,019 | ) | (1,740,693 | ) | (79,150 | ) | (2,932,479 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (1,160,702 | ) | (92,630,259 | ) | (2,442,321 | ) | (184,995,584 | ) | ||||||||
| ||||||||||||||||
Class C | (54,313 | ) | (2,129,937 | ) | (163,560 | ) | (6,046,649 | ) | ||||||||
| ||||||||||||||||
Class R | (75,603 | ) | (5,100,299 | ) | (105,466 | ) | (6,887,264 | ) | ||||||||
| ||||||||||||||||
Class Y | (2,540,720 | ) | (249,798,718 | ) | (6,283,418 | ) | (584,008,401 | ) | ||||||||
| ||||||||||||||||
Class R5 | (4,016 | ) | (328,139 | ) | (4,332 | ) | (336,018 | ) | ||||||||
| ||||||||||||||||
Class R6 | (929,407 | ) | (95,109,803 | ) | (1,411,452 | ) | (136,580,520 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (171,563 | ) | $ | 11,079,257 | (1,208,895 | ) | $ | (67,904,229 | ) | |||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 24% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
15 | Invesco 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, 2023 through February 29, 2024.
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 (09/01/23) | Ending Account Value (02/29/24)1 | Expenses Paid During Period2 | Ending Account Value (02/29/24) | Expenses Paid During Period2 | Annualized Ratio | |||||||
Class A | $1,000.00 | $1,145.50 | $5.65 | $1,019.59 | $5.32 | 1.06% | ||||||
Class C | 1,000.00 | 1,141.10 | 9.69 | 1,015.81 | 9.12 | 1.82 | ||||||
Class R | 1,000.00 | 1,143.90 | 7.04 | 1,018.30 | 6.62 | 1.32 | ||||||
Class Y | 1,000.00 | 1,146.80 | 4.38 | 1,020.79 | 4.12 | 0.82 | ||||||
Class R5 | 1,000.00 | 1,148.00 | 3.26 | 1,021.83 | 3.07 | 0.61 | ||||||
Class R6 | 1,000.00 | 1,147.70 | 3.58 | 1,021.53 | 3.37 | 0.67 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2023 through February 29, 2024, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
16 | Invesco Discovery Fund |
A Special Joint Meeting (“Meeting”) of Shareholders of AIM Counselor Series Trust (Invesco Counselor Series Trust), a Delaware statutory trust (“Trust”), was held on January 16, 2024. The Meeting was held for the following purpose:
(1) | Elect 14 trustees to the Board of Trustees of the Trust, each of whom will serve until his or her successor is duly elected and qualified. |
The results of the voting on the above matter were as follows:
Matter | Votes For | Votes Against/Withheld | ||||||
(1)* Beth Ann Brown | 3,109,848,785.61 | 65,706,470.15 | ||||||
Carol Deckbar | 3,109,186,378.07 | 66,368,877.70 | ||||||
Cynthia Hostetler | 3,108,148,647.37 | 67,406,608.40 | ||||||
Dr. Eli Jones | 3,106,962,123.35 | 68,593,132.42 | ||||||
Elizabeth Krentzman | 3,109,153,762.02 | 66,401,493.75 | ||||||
Jeffrey H. Kupor | 3,109,094,174.85 | 66,461,080.92 | ||||||
Anthony J. LaCava, Jr. | 3,107,453,603.09 | 68,101,652.67 | ||||||
James Liddy | 3,108,418,832.17 | 67,136,423.60 | ||||||
Dr. Prema Mathai-Davis | 3,100,922,564.57 | 74,632,691.20 | ||||||
Joel W. Motley | 3,104,496,522.60 | 71,058,733.17 | ||||||
Teresa M. Ressel | 3,109,248,693.76 | 66,306,562.01 | ||||||
Douglas Sharp | 3,108,681,578.09 | 66,873,677.67 | ||||||
Robert C. Troccoli | 3,104,038,320.81 | 71,516,934.96 | ||||||
Daniel S. Vandivort | 3,106,373,978.14 | 69,181,277.62 |
* Proposal 1 required approval by a combined vote of all the portfolios of AIM Counselor Series Trust (Invesco Counselor Series Trust).
17 | Invesco Discovery Fund |
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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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, 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/corporate/about-us/esg. 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. This 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 number(s): 811-09913 and 333-36074 | Invesco Distributors, Inc. | O-DIS-SAR-1 |
Semiannual Report to Shareholders | February 29, 2024 |
Invesco Equally-Weighted S&P 500 Fund
Nasdaq:
A: VADAX ∎ C: VADCX ∎ R: VADRX ∎ Y: VADDX ∎ R6: VADFX
2 | Fund Performance | |
4 | Schedule of Investments | |
13 | Financial Statements | |
16 | Financial Highlights | |
17 | Notes to Financial Statements | |
23 | Fund Expenses | |
24 | Proxy Results |
Beginning in July 2024, amendments adopted by the Securities and Exchange Commission will substantially impact the design, content, and delivery of shareholder reports. These newly designed shareholder reports will highlight key fund information in a clear and concise format and must be mailed to each shareholder that has not elected to receive the reports electronically. Other information, including financial statements, will no longer be included in the shareholder report but will be available at invesco.com/reports, delivered upon request, and filed on a semi-annual basis on Form N-CSR.
If you would like to receive shareholder reports and other communications electronically instead of by mail, you may make that request 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. If you do not make this request or enroll in e-delivery, you will receive future shareholder reports and other communications by mail.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is 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, 8/31/23 to 2/29/24, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 9.42 | % | ||
Class C Shares | 9.02 | |||
Class R Shares | 9.30 | |||
Class Y Shares | 9.55 | |||
Class R6 Shares | 9.61 | |||
S&P 500 Index▼ (Broad Market Index) | 13.93 | |||
S&P 500 Equal Weight Index▼ (Style-Specific Index) | 9.70 | |||
Lipper Multi-Cap Core Funds Index∎ (Peer Group Index) | 13.06 | |||
Source(s): ▼RIMES Technologies Corp.; ∎Lipper Inc. | ||||
The S&P 500® Index is an unmanaged index considered representative of the US stock market. |
| |||
The S&P 500® Equal Weight Index is the equally weighted version of the S&P 500® Index, which is considered representative of the US stock market. |
| |||
The Lipper Multi-Cap Core Funds Index is an unmanaged index considered representative of multicap 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 visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their in-sights about market and economic news and trends.
2 | Invesco Equally-Weighted S&P 500 Fund |
Average Annual Total Returns |
| |||
As of 2/29/24, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (7/28/97) | 8.88 | % | ||
10 Years | 9.31 | |||
5 Years | 9.76 | |||
1 Year | 6.54 | |||
Class C Shares | ||||
Inception (7/28/97) | 8.87 | % | ||
10 Years | 9.30 | |||
5 Years | 10.19 | |||
1 Year | 10.90 | |||
Class R Shares | ||||
Inception (3/31/08) | 10.02 | % | ||
10 Years | 9.65 | |||
5 Years | 10.73 | |||
1 Year | 12.46 | |||
Class Y Shares | ||||
Inception (7/28/97) | 9.38 | % | ||
10 Years | 10.20 | |||
5 Years | 11.28 | |||
1 Year | 13.01 | |||
Class R6 Shares | ||||
Inception (9/24/12) | 12.28 | % | ||
10 Years | 10.33 | |||
5 Years | 11.41 | |||
1 Year | 13.12 |
Returns above include the effect of the Adviser pay-in for an economic loss as a result of a delay in rebalancing to the index that occurred on April 24, 2020. Had the pay-in not been made, the total return would have been lower.
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 those for Class A, Class C and Class R and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
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 a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 | Invesco Equally-Weighted S&P 500 Fund |
February 29, 2024
(Unaudited)
Shares | Value | |||||||
Common Stocks & Other Equity Interests–99.13% |
| |||||||
Advertising–0.38% |
| |||||||
Interpublic Group of Cos., Inc. (The) | 383,866 | $ | 12,053,392 | |||||
Omnicom Group, Inc. | 146,256 | 12,927,568 | ||||||
24,980,960 | ||||||||
Aerospace & Defense–2.22% |
| |||||||
Axon Enterprise, Inc.(b) | 50,698 | 15,583,044 | ||||||
Boeing Co. (The)(b) | 49,531 | 10,090,456 | ||||||
General Dynamics Corp. | 48,041 | 13,127,203 | ||||||
Howmet Aerospace, Inc. | 225,015 | 14,974,748 | ||||||
Huntington Ingalls Industries, Inc. | 48,542 | 14,155,818 | ||||||
L3Harris Technologies, Inc. | 61,204 | 12,954,439 | ||||||
Lockheed Martin Corp. | 26,749 | 11,454,992 | ||||||
Northrop Grumman Corp. | 25,450 | 11,732,959 | ||||||
RTX Corp. | 147,371 | 13,214,758 | ||||||
Textron, Inc. | 157,833 | 14,058,185 | ||||||
TransDigm Group, Inc. | 12,180 | 14,344,873 | ||||||
145,691,475 | ||||||||
Agricultural & Farm Machinery–0.18% |
| |||||||
Deere & Co. | 32,954 | 12,029,858 | ||||||
Agricultural Products & Services–0.30% |
| |||||||
Archer-Daniels-Midland Co. | 164,341 | 8,728,151 | ||||||
Bunge Global S.A. | 115,982 | 10,945,221 | ||||||
19,673,372 | ||||||||
Air Freight & Logistics–0.68% |
| |||||||
C.H. Robinson Worldwide, Inc. | 141,825 | 10,506,396 | ||||||
Expeditors International of Washington, Inc. | 99,562 | 11,907,615 | ||||||
FedEx Corp. | 44,524 | 11,085,140 | ||||||
United Parcel Service, Inc., Class B | 76,675 | 11,367,836 | ||||||
44,866,987 | ||||||||
Apparel Retail–0.41% |
| |||||||
Ross Stores, Inc. | 90,736 | 13,516,035 | ||||||
TJX Cos., Inc. (The) | 134,458 | 13,330,166 | ||||||
26,846,201 | ||||||||
Apparel, Accessories & Luxury Goods–0.86% |
| |||||||
lululemon athletica, inc.(b) | 24,753 | 11,561,879 | ||||||
Ralph Lauren Corp. | 90,955 | 16,910,353 | ||||||
Tapestry, Inc. | 357,419 | 16,988,125 | ||||||
V.F. Corp.(c) | 668,144 | 10,917,473 | ||||||
56,377,830 | ||||||||
Application Software–2.23% |
| |||||||
Adobe, Inc.(b) | 19,868 | 11,131,643 | ||||||
ANSYS, Inc.(b) | 41,728 | 13,944,246 | ||||||
Autodesk, Inc.(b) | 53,500 | 13,812,095 | ||||||
Cadence Design Systems, Inc.(b) | 46,628 | 14,192,631 | ||||||
Fair Isaac Corp.(b) | 10,565 | 13,416,599 | ||||||
Intuit, Inc. | 20,883 | 13,843,132 | ||||||
PTC, Inc.(b) | 71,930 | 13,163,909 | ||||||
Roper Technologies, Inc. | 22,587 | 12,303,816 | ||||||
Salesforce, Inc.(b) | 47,782 | 14,756,037 |
Shares | Value | |||||||
Application Software–(continued) |
| |||||||
Synopsys, Inc.(b) | 22,615 | $ | 12,974,904 | |||||
Tyler Technologies, Inc.(b) | 29,733 | 12,997,484 | ||||||
146,536,496 | ||||||||
Asset Management & Custody Banks–1.78% |
| |||||||
Ameriprise Financial, Inc. | 33,514 | 13,652,263 | ||||||
Bank of New York Mellon Corp. (The) | 244,277 | 13,701,497 | ||||||
BlackRock, Inc. | 16,093 | 13,056,894 | ||||||
Blackstone, Inc., Class A | 106,461 | 13,607,845 | ||||||
Franklin Resources, Inc.(c) | 468,686 | 12,865,431 | ||||||
Invesco Ltd. (Acquired 12/22/2008-12/15/2023; | 787,922 | 12,141,878 | ||||||
Northern Trust Corp. | 149,077 | 12,243,694 | ||||||
State Street Corp. | 162,017 | 11,945,513 | ||||||
T. Rowe Price Group, Inc. | 121,742 | 13,799,456 | ||||||
117,014,471 | ||||||||
Automobile Manufacturers–0.58% |
| |||||||
Ford Motor Co. | 1,088,492 | 13,540,841 | ||||||
General Motors Co.(f) | 355,090 | 14,551,588 | ||||||
Tesla, Inc.(b) | 49,706 | 10,034,647 | ||||||
38,127,076 | ||||||||
Automotive Parts & Equipment–0.35% |
| |||||||
Aptiv PLC(b) | 150,123 | 11,933,277 | ||||||
BorgWarner, Inc. | 364,265 | 11,339,570 | ||||||
23,272,847 | ||||||||
Automotive Retail–0.64% |
| |||||||
AutoZone, Inc.(b)(c) | 4,625 | 13,902,842 | ||||||
CarMax, Inc.(b)(c) | 178,284 | 14,084,436 | ||||||
O’Reilly Automotive, Inc.(b) | 12,814 | 13,934,200 | ||||||
41,921,478 | ||||||||
Biotechnology–1.57% |
| |||||||
AbbVie, Inc. | 80,280 | 14,133,294 | ||||||
Amgen, Inc. | 44,531 | 12,193,924 | ||||||
Biogen, Inc.(b) | 50,083 | 10,867,510 | ||||||
Gilead Sciences, Inc. | 151,662 | 10,934,830 | ||||||
Incyte Corp.(b) | 219,091 | 12,786,151 | ||||||
Moderna, Inc.(b)(c) | 149,206 | 13,762,762 | ||||||
Regeneron Pharmaceuticals, Inc.(b) | 14,266 | 13,782,240 | ||||||
Vertex Pharmaceuticals, Inc.(b) | 34,226 | 14,400,247 | ||||||
102,860,958 | ||||||||
Brewers–0.19% |
| |||||||
Molson Coors Beverage Co., Class B | 194,513 | 12,141,501 | ||||||
Broadcasting–0.30% |
| |||||||
Fox Corp., Class A | 270,017 | 8,043,806 | ||||||
Fox Corp., Class B | 144,086 | 3,945,075 | ||||||
Paramount Global, Class B(c) | 719,297 | 7,941,039 | ||||||
19,929,920 | ||||||||
Broadline Retail–0.60% |
| |||||||
Amazon.com, Inc.(b) | 82,215 | 14,532,323 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 | Invesco Equally-Weighted S&P 500 Fund |
Shares | Value | |||||||
Broadline Retail–(continued) |
| |||||||
eBay, Inc. | 290,247 | $ | 13,722,878 | |||||
Etsy, Inc.(b) | 151,350 | 10,850,282 | ||||||
39,105,483 | ||||||||
Building Products–1.47% |
| |||||||
A.O. Smith Corp. | 153,664 | 12,738,746 | ||||||
Allegion PLC | 108,612 | 13,888,216 | ||||||
Builders FirstSource, Inc.(b) | 82,074 | 16,019,203 | ||||||
Carrier Global Corp.(c) | 216,831 | 12,051,467 | ||||||
Johnson Controls International PLC | 213,699 | 12,665,940 | ||||||
Masco Corp. | 187,254 | 14,373,617 | ||||||
Trane Technologies PLC | 51,215 | 14,441,094 | ||||||
96,178,283 | ||||||||
Cable & Satellite–0.33% |
| |||||||
Charter Communications, Inc., Class A(b) | 32,605 | 9,583,587 | ||||||
Comcast Corp., Class A | 284,662 | 12,197,767 | ||||||
21,781,354 | ||||||||
Cargo Ground Transportation–0.42% |
| |||||||
J.B. Hunt Transport Services, Inc.(c) | 64,218 | 13,248,816 | ||||||
Old Dominion Freight Line, Inc. | 32,438 | 14,353,166 | ||||||
27,601,982 | ||||||||
Casinos & Gaming–0.81% |
| |||||||
Caesars Entertainment, Inc.(b) | 271,198 | 11,788,977 | ||||||
Las Vegas Sands Corp. | 258,338 | 14,084,588 | ||||||
MGM Resorts International(b) | 289,336 | 12,522,462 | ||||||
Wynn Resorts Ltd. | 142,348 | 14,975,010 | ||||||
53,371,037 | ||||||||
Commodity Chemicals–0.40% |
| |||||||
Dow, Inc. | 235,356 | 13,151,693 | ||||||
LyondellBasell Industries N.V., Class A | 129,448 | 12,981,046 | ||||||
26,132,739 | ||||||||
Communications Equipment–1.03% |
| |||||||
Arista Networks, Inc.(b) | 53,494 | 14,846,725 | ||||||
Cisco Systems, Inc. | 247,711 | 11,981,781 | ||||||
F5, Inc.(b) | 70,157 | 13,134,793 | ||||||
Juniper Networks, Inc. | 413,394 | 15,307,980 | ||||||
Motorola Solutions, Inc. | 37,348 | 12,339,406 | ||||||
67,610,685 | ||||||||
Computer & Electronics Retail–0.20% |
| |||||||
Best Buy Co., Inc. | 161,970 | 13,100,134 | ||||||
Construction & Engineering–0.22% |
| |||||||
Quanta Services, Inc. | 60,148 | 14,526,343 | ||||||
Construction Machinery & Heavy Transportation Equipment– 0.88% |
| |||||||
Caterpillar, Inc. | 46,182 | 15,422,941 | ||||||
Cummins, Inc. | 51,974 | 13,960,736 | ||||||
PACCAR, Inc. | 127,072 | 14,091,014 | ||||||
Wabtec Corp. | 101,219 | 14,301,232 | ||||||
57,775,923 | ||||||||
Construction Materials–0.45% |
| |||||||
Martin Marietta Materials, Inc. | 25,531 | 14,749,514 | ||||||
Vulcan Materials Co. | 55,475 | 14,748,029 | ||||||
29,497,543 |
Shares | Value | |||||||
Consumer Electronics–0.20% |
| |||||||
Garmin Ltd. | 97,280 | $ | 13,361,408 | |||||
Consumer Finance–0.88% |
| |||||||
American Express Co. | 71,154 | 15,612,611 | ||||||
Capital One Financial Corp. | 101,485 | 13,965,351 | ||||||
Discover Financial Services | 116,015 | 14,003,011 | ||||||
Synchrony Financial | 339,595 | 14,025,273 | ||||||
57,606,246 | ||||||||
Consumer Staples Merchandise Retail–1.07% |
| |||||||
Costco Wholesale Corp. | 19,620 | 14,595,122 | ||||||
Dollar General Corp. | 94,202 | 13,688,493 | ||||||
Dollar Tree, Inc.(b) | 96,329 | 14,129,538 | ||||||
Target Corp. | 88,646 | 13,555,746 | ||||||
Walmart, Inc. | 238,320 | 13,967,935 | ||||||
69,936,834 | ||||||||
Copper–0.18% |
| |||||||
Freeport-McMoRan, Inc. | 314,135 | 11,877,444 | ||||||
Data Center REITs–0.41% |
| |||||||
Digital Realty Trust, Inc. | 89,905 | 13,198,953 | ||||||
Equinix, Inc. | 15,118 | 13,437,181 | ||||||
26,636,134 | ||||||||
Data Processing & Outsourced Services–0.19% |
| |||||||
Broadridge Financial Solutions, Inc.(c) | 62,627 | 12,749,605 | ||||||
Distillers & Vintners–0.39% |
| |||||||
Brown-Forman Corp., Class B(c) | 217,580 | 13,104,844 | ||||||
Constellation Brands, Inc., Class A | 51,118 | 12,703,845 | ||||||
25,808,689 | ||||||||
Distributors–0.62% |
| |||||||
Genuine Parts Co. | 90,121 | 13,451,460 | ||||||
LKQ Corp. | 263,971 | 13,803,044 | ||||||
Pool Corp.(c) | 33,843 | 13,473,575 | ||||||
40,728,079 | ||||||||
Diversified Banks–1.80% |
| |||||||
Bank of America Corp. | 387,090 | 13,362,347 | ||||||
Citigroup, Inc. | 245,127 | 13,602,097 | ||||||
Comerica, Inc. | 239,830 | 11,842,805 | ||||||
Fifth Third Bancorp | 383,498 | 13,169,321 | ||||||
JPMorgan Chase & Co. | 75,601 | 14,066,322 | ||||||
KeyCorp | 903,792 | 12,897,112 | ||||||
PNC Financial Services Group, Inc. (The) | 85,195 | 12,540,704 | ||||||
U.S. Bancorp | 296,421 | 12,437,825 | ||||||
Wells Fargo & Co. | 259,962 | 14,451,288 | ||||||
118,369,821 | ||||||||
Diversified Support Services–0.41% |
| |||||||
Cintas Corp. | 21,658 | 13,614,435 | ||||||
Copart, Inc.(b) | 255,753 | 13,593,272 | ||||||
27,207,707 | ||||||||
Drug Retail–0.17% |
| |||||||
Walgreens Boots Alliance, Inc. | 517,456 | 11,001,115 | ||||||
Electric Utilities–3.13% |
| |||||||
Alliant Energy Corp. | 233,247 | 11,137,544 | ||||||
American Electric Power Co., Inc. | 150,482 | 12,819,562 |
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 | |||||||
Electric Utilities–(continued) |
| |||||||
Constellation Energy Corp. | 107,762 | $ | 18,152,509 | |||||
Duke Energy Corp. | 126,967 | 11,659,380 | ||||||
Edison International(c) | 177,677 | 12,085,589 | ||||||
Entergy Corp. | 117,483 | 11,932,748 | ||||||
Evergy, Inc. | 232,435 | 11,514,830 | ||||||
Eversource Energy | 200,909 | 11,793,358 | ||||||
Exelon Corp. | 309,109 | 11,078,467 | ||||||
FirstEnergy Corp. | 323,201 | 11,832,389 | ||||||
NextEra Energy, Inc. | 200,742 | 11,078,951 | ||||||
NRG Energy, Inc. | 250,665 | 13,866,788 | ||||||
PG&E Corp. | 680,538 | 11,358,179 | ||||||
Pinnacle West Capital Corp. | 160,958 | 10,998,260 | ||||||
PPL Corp. | 459,873 | 12,126,851 | ||||||
Southern Co. (The) | 169,512 | 11,399,682 | ||||||
Xcel Energy, Inc. | 196,754 | 10,366,968 | ||||||
205,202,055 | ||||||||
Electrical Components & Equipment–1.24% |
| |||||||
AMETEK, Inc. | 76,256 | 13,739,806 | ||||||
Eaton Corp. PLC | 51,588 | 14,908,932 | ||||||
Emerson Electric Co. | 133,828 | 14,299,522 | ||||||
Generac Holdings, Inc.(b) | 99,712 | 11,218,597 | ||||||
Hubbell, Inc. | 38,889 | 14,803,876 | ||||||
Rockwell Automation, Inc. | 43,028 | 12,266,422 | ||||||
81,237,155 | ||||||||
Electronic Components–0.42% |
| |||||||
Amphenol Corp., Class A | 128,545 | 14,042,256 | ||||||
Corning, Inc. | 411,689 | 13,272,853 | ||||||
27,315,109 | ||||||||
Electronic Equipment & Instruments–0.84% |
| |||||||
Keysight Technologies, Inc.(b) | 83,035 | 12,812,301 | ||||||
Teledyne Technologies, Inc.(b)(c) | 29,124 | 12,443,812 | ||||||
Trimble, Inc.(b) | 255,527 | 15,635,697 | ||||||
Zebra Technologies Corp., Class A(b)(c) | 50,753 | 14,184,448 | ||||||
55,076,258 | ||||||||
Electronic Manufacturing Services–0.42% |
| |||||||
Jabil, Inc. | 101,943 | 14,688,967 | ||||||
TE Connectivity Ltd. | 90,910 | 13,051,039 | ||||||
27,740,006 | ||||||||
Environmental & Facilities Services–0.83% |
| |||||||
Republic Services, Inc. | 74,073 | 13,599,803 | ||||||
Rollins, Inc. | 289,266 | 12,747,953 | ||||||
Veralto Corp. | 158,878 | 13,730,237 | ||||||
Waste Management, Inc. | 69,473 | 14,287,122 | ||||||
54,365,115 | ||||||||
Fertilizers & Agricultural Chemicals–0.75% |
| |||||||
CF Industries Holdings, Inc. | 156,534 | 12,635,425 | ||||||
Corteva, Inc. | 265,433 | 14,205,974 | ||||||
FMC Corp.(c) | 214,465 | 12,093,681 | ||||||
Mosaic Co. (The)(f) | 339,689 | 10,584,709 | ||||||
49,519,789 | ||||||||
Financial Exchanges & Data–1.72% |
| |||||||
Cboe Global Markets, Inc. | 67,817 | 13,020,864 | ||||||
CME Group, Inc., Class A | 57,273 | 12,620,106 | ||||||
FactSet Research Systems, Inc. | 26,998 | 12,488,735 |
Shares | Value | |||||||
Financial Exchanges & Data–(continued) |
| |||||||
Intercontinental Exchange, Inc. | 105,738 | $ | 14,636,254 | |||||
MarketAxess Holdings, Inc.(c) | 45,798 | 9,773,751 | ||||||
Moody’s Corp. | 32,354 | 12,275,755 | ||||||
MSCI, Inc. | 23,653 | 13,268,623 | ||||||
Nasdaq, Inc. | 222,055 | 12,479,491 | ||||||
S&P Global, Inc. | 28,850 | 12,358,763 | ||||||
112,922,342 | ||||||||
Food Distributors–0.20% |
| |||||||
Sysco Corp. | 162,323 | 13,143,293 | ||||||
Food Retail–0.20% |
| |||||||
Kroger Co. (The) | 268,826 | 13,336,458 | ||||||
Footwear–0.17% |
| |||||||
NIKE, Inc., Class B | 104,565 | 10,867,440 | ||||||
Gas Utilities–0.18% |
| |||||||
Atmos Energy Corp. | 105,626 | 11,926,232 | ||||||
Gold–0.15% | ||||||||
Newmont Corp. | 306,660 | 9,583,125 | ||||||
Health Care Distributors–0.81% |
| |||||||
Cardinal Health, Inc. | 113,453 | 12,704,467 | ||||||
Cencora, Inc. | 59,402 | 13,995,111 | ||||||
Henry Schein, Inc.(b) | 166,656 | 12,744,184 | ||||||
McKesson Corp. | 26,173 | 13,646,864 | ||||||
53,090,626 | ||||||||
Health Care Equipment–3.43% |
| |||||||
Abbott Laboratories | 114,670 | 13,604,449 | ||||||
Baxter International, Inc. | 331,516 | 13,565,635 | ||||||
Becton, Dickinson and Co. | 51,591 | 12,152,260 | ||||||
Boston Scientific Corp.(b) | 218,095 | 14,440,070 | ||||||
DexCom, Inc.(b) | 102,456 | 11,789,612 | ||||||
Edwards Lifesciences Corp.(b) | 173,232 | 14,702,200 | ||||||
GE HealthCare Technologies, Inc. | 174,903 | 15,965,146 | ||||||
Hologic, Inc.(b) | 175,285 | 12,936,033 | ||||||
IDEXX Laboratories, Inc.(b) | 22,556 | 12,974,888 | ||||||
Insulet Corp.(b) | 61,565 | 10,096,660 | ||||||
Intuitive Surgical, Inc.(b) | 38,607 | 14,886,859 | ||||||
Medtronic PLC | 151,030 | 12,589,861 | ||||||
ResMed, Inc. | 73,582 | 12,782,665 | ||||||
STERIS PLC | 59,772 | 13,921,496 | ||||||
Stryker Corp. | 41,454 | 14,470,348 | ||||||
Teleflex, Inc. | 51,862 | 11,554,335 | ||||||
Zimmer Biomet Holdings, Inc. | 102,168 | 12,705,612 | ||||||
225,138,129 | ||||||||
Health Care Facilities–0.44% |
| |||||||
HCA Healthcare, Inc. | 46,537 | 14,505,583 | ||||||
Universal Health Services, Inc., Class B | 87,190 | 14,565,961 | ||||||
29,071,544 | ||||||||
Health Care REITs–0.52% |
| |||||||
Healthpeak Properties, Inc. | 639,162 | 10,705,964 | ||||||
Ventas, Inc. | 256,512 | 10,847,892 | ||||||
Welltower, Inc. | 136,620 | 12,590,899 | ||||||
34,144,755 |
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 | |||||||
Health Care Services–0.98% |
| |||||||
Cigna Group (The) | 46,306 | $ | 15,565,299 | |||||
CVS Health Corp. | 159,578 | 11,867,816 | ||||||
DaVita, Inc.(b) | 111,399 | 14,144,331 | ||||||
Laboratory Corp. of America Holdings | 55,329 | 11,941,658 | ||||||
Quest Diagnostics, Inc. | 88,179 | 11,012,675 | ||||||
64,531,779 | ||||||||
Health Care Supplies–0.64% |
| |||||||
Align Technology, Inc.(b) | 54,171 | 16,382,394 | ||||||
Cooper Cos., Inc. (The) | 143,093 | 13,393,505 | ||||||
DENTSPLY SIRONA, Inc. | 375,919 | 12,285,033 | ||||||
42,060,932 | ||||||||
Home Furnishings–0.23% |
| |||||||
Mohawk Industries, Inc.(b)(c) | 129,840 | 15,401,621 | ||||||
Home Improvement Retail–0.42% |
| |||||||
Home Depot, Inc. (The) | 36,708 | 13,971,432 | ||||||
Lowe’s Cos., Inc. | 57,664 | 13,877,995 | ||||||
27,849,427 | ||||||||
Homebuilding–0.82% |
| |||||||
D.R. Horton, Inc. | 86,553 | 12,934,480 | ||||||
Lennar Corp., Class A | 85,859 | 13,609,510 | ||||||
NVR, Inc.(b) | 1,834 | 13,985,296 | ||||||
PulteGroup, Inc. | 124,435 | 13,486,265 | ||||||
54,015,551 | ||||||||
Hotel & Resort REITs–0.21% |
| |||||||
Host Hotels & Resorts, Inc.(c) | 666,164 | 13,816,241 | ||||||
Hotels, Resorts & Cruise Lines–1.55% |
| |||||||
Airbnb, Inc., Class A(b)(c) | 86,154 | 13,566,671 | ||||||
Booking Holdings, Inc.(b) | 3,659 | 12,692,449 | ||||||
Carnival Corp.(b)(c) | 669,250 | 10,614,305 | ||||||
Expedia Group, Inc.(b) | 82,366 | 11,269,316 | ||||||
Hilton Worldwide Holdings, Inc. | 69,948 | 14,291,775 | ||||||
Marriott International, Inc., Class A | 57,231 | 14,300,310 | ||||||
Norwegian Cruise Line Holdings Ltd.(b)(c) | 648,829 | 12,580,794 | ||||||
Royal Caribbean Cruises Ltd.(b) | 99,478 | 12,270,611 | ||||||
101,586,231 | ||||||||
Household Appliances–0.18% |
| |||||||
Whirlpool Corp. | 107,589 | 11,553,983 | ||||||
Household Products–0.99% | ||||||||
Church & Dwight Co., Inc. | 128,946 | 12,910,074 | ||||||
Clorox Co. (The) | 85,624 | 13,127,015 | ||||||
Colgate-Palmolive Co. | 155,298 | 13,436,383 | ||||||
Kimberly-Clark Corp. | 99,918 | 12,107,064 | ||||||
Procter & Gamble Co. (The) | 82,565 | 13,122,881 | ||||||
64,703,417 | ||||||||
Human Resource & Employment Services–0.93% |
| |||||||
Automatic Data Processing, Inc. | 52,272 | 13,127,067 | ||||||
Dayforce, Inc.(b)(c) | 180,440 | 12,587,495 | ||||||
Paychex, Inc. | 97,728 | 11,983,407 | ||||||
Paycom Software, Inc. | 64,236 | 11,716,004 | ||||||
Robert Half, Inc. | 145,868 | 11,727,787 | ||||||
61,141,760 |
Shares | Value | |||||||
Independent Power Producers & Energy Traders–0.15% |
| |||||||
AES Corp. (The) | 657,755 | $ | 9,997,876 | |||||
Industrial Conglomerates–0.59% |
| |||||||
3M Co. | 115,937 | 10,680,117 | ||||||
General Electric Co. | 99,380 | 15,591,728 | ||||||
Honeywell International, Inc. | 61,580 | 12,237,793 | ||||||
38,509,638 | ||||||||
Industrial Gases–0.37% |
| |||||||
Air Products and Chemicals, Inc. | 45,520 | 10,653,501 | ||||||
Linde PLC | 29,867 | 13,404,907 | ||||||
24,058,408 | ||||||||
Industrial Machinery & Supplies & Components–2.48% |
| |||||||
Dover Corp. | 83,444 | 13,799,969 | ||||||
Fortive Corp. | 173,962 | 14,809,385 | ||||||
IDEX Corp. | 58,507 | 13,801,801 | ||||||
Illinois Tool Works, Inc.(c) | 48,011 | 12,586,084 | ||||||
Ingersoll Rand, Inc. | 163,475 | 14,930,172 | ||||||
Nordson Corp. | 50,110 | 13,311,721 | ||||||
Otis Worldwide Corp. | 138,516 | 13,200,575 | ||||||
Parker-Hannifin Corp. | 27,321 | 14,629,029 | ||||||
Pentair PLC | 177,782 | 13,829,662 | ||||||
Snap-on, Inc. | 43,075 | 11,874,054 | ||||||
Stanley Black & Decker, Inc. | 129,072 | 11,524,839 | ||||||
Xylem, Inc. | 112,656 | 14,312,945 | ||||||
162,610,236 | ||||||||
Industrial REITs–0.20% |
| |||||||
Prologis, Inc. | 99,994 | 13,326,200 | ||||||
Insurance Brokers–0.98% |
| |||||||
Aon PLC, Class A | 37,396 | 11,816,762 | ||||||
Arthur J. Gallagher & Co. | 50,299 | 12,269,435 | ||||||
Brown & Brown, Inc.(c) | 163,455 | 13,764,546 | ||||||
Marsh & McLennan Cos., Inc. | 61,942 | 12,529,008 | ||||||
Willis Towers Watson PLC | 49,948 | 13,616,324 | ||||||
63,996,075 | ||||||||
Integrated Oil & Gas–0.58% |
| |||||||
Chevron Corp. | 83,044 | 12,623,519 | ||||||
Exxon Mobil Corp. | 120,385 | 12,582,640 | ||||||
Occidental Petroleum Corp.(c) | 212,223 | 12,862,836 | ||||||
38,068,995 | ||||||||
Integrated Telecommunication Services–0.37% |
| |||||||
AT&T, Inc. | 708,291 | 11,991,367 | ||||||
Verizon Communications, Inc. | 313,315 | 12,538,866 | ||||||
24,530,233 | ||||||||
Interactive Home Entertainment–0.36% |
| |||||||
Electronic Arts, Inc. | 88,378 | 12,326,963 | ||||||
Take-Two Interactive Software, Inc.(b) | 77,159 | 11,336,972 | ||||||
23,663,935 | ||||||||
Interactive Media & Services–0.66% |
| |||||||
Alphabet, Inc., Class A(b) | 48,482 | 6,712,818 | ||||||
Alphabet, Inc., Class C(b) | 40,804 | 5,703,583 | ||||||
Match Group, Inc.(b) | 373,342 | 13,455,245 | ||||||
Meta Platforms, Inc., Class A | 36,015 | 17,652,032 | ||||||
43,523,678 |
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 | |||||||
Internet Services & Infrastructure–0.35% |
| |||||||
Akamai Technologies, Inc.(b) | 104,749 | $ | 11,618,759 | |||||
VeriSign, Inc.(b) | 56,910 | 11,113,954 | ||||||
22,732,713 | ||||||||
Investment Banking & Brokerage–0.79% |
| |||||||
Charles Schwab Corp. (The) | 187,050 | 12,491,199 | ||||||
Goldman Sachs Group, Inc. (The) | 34,160 | 13,289,948 | ||||||
Morgan Stanley | 145,652 | 12,531,898 | ||||||
Raymond James Financial, Inc. | 111,951 | 13,469,944 | ||||||
51,782,989 | ||||||||
IT Consulting & Other Services–1.02% |
| |||||||
Accenture PLC, Class A | 35,940 | 13,469,593 | ||||||
Cognizant Technology Solutions Corp., Class A | 170,400 | 13,465,008 | ||||||
EPAM Systems, Inc.(b) | 44,635 | 13,586,894 | ||||||
Gartner, Inc.(b) | 26,814 | 12,483,526 | ||||||
International Business Machines Corp. | 74,835 | 13,846,720 | ||||||
66,851,741 | ||||||||
Leisure Products–0.19% |
| |||||||
Hasbro, Inc.(c) | 246,083 | 12,375,514 | ||||||
Life & Health Insurance–0.96% | ||||||||
Aflac, Inc. | 146,821 | 11,854,328 | ||||||
Globe Life, Inc. | 99,053 | 12,572,797 | ||||||
MetLife, Inc. | 186,992 | 13,040,822 | ||||||
Principal Financial Group, Inc. | 159,472 | 12,894,906 | ||||||
Prudential Financial, Inc. | 118,810 | 12,949,102 | ||||||
63,311,955 | ||||||||
Life Sciences Tools & Services–2.51% |
| |||||||
Agilent Technologies, Inc. | 94,216 | 12,941,510 | ||||||
Bio-Rad Laboratories, Inc., Class A(b) | 39,405 | 12,841,301 | ||||||
Bio-Techne Corp. | 175,440 | 12,907,121 | ||||||
Charles River Laboratories International,Inc.(b)(c) | 58,614 | 14,899,093 | ||||||
Danaher Corp. | 55,103 | 13,948,773 | ||||||
Illumina, Inc.(b) | 106,111 | 14,837,501 | ||||||
IQVIA Holdings, Inc.(b) | 55,668 | 13,758,903 | ||||||
Mettler-Toledo International, Inc.(b) | 10,988 | 13,704,453 | ||||||
Revvity, Inc. | 131,666 | 14,429,277 | ||||||
Thermo Fisher Scientific, Inc. | 24,470 | 13,952,305 | ||||||
Waters Corp.(b)(c) | 41,022 | 13,841,643 | ||||||
West Pharmaceutical Services, Inc. | 35,017 | 12,548,692 | ||||||
164,610,572 | ||||||||
Managed Health Care–0.88% |
| |||||||
Centene Corp.(b) | 162,455 | 12,741,346 | ||||||
Elevance Health, Inc. | 25,358 | 12,710,697 | ||||||
Humana, Inc. | 25,165 | 8,815,803 | ||||||
Molina Healthcare, Inc.(b) | 32,590 | 12,837,527 | ||||||
UnitedHealth Group, Inc. | 22,046 | 10,881,905 | ||||||
57,987,278 | ||||||||
Metal, Glass & Plastic Containers–0.21% |
| |||||||
Ball Corp. | 210,748 | 13,492,087 | ||||||
Movies & Entertainment–0.81% |
| |||||||
Live Nation Entertainment, Inc.(b) | 140,677 | 13,642,856 | ||||||
Netflix, Inc.(b) | 26,412 | 15,924,323 | ||||||
Walt Disney Co. (The) | 130,576 | 14,569,670 |
Shares | Value | |||||||
Movies & Entertainment–(continued) |
| |||||||
Warner Bros. Discovery, Inc.(b) | 1,056,681 | $ | 9,288,226 | |||||
53,425,075 | ||||||||
Multi-Family Residential REITs–1.11% |
| |||||||
AvalonBay Communities, Inc. | 68,190 | 12,071,676 | ||||||
Camden Property Trust | 127,969 | 12,090,511 | ||||||
Equity Residential | 203,744 | 12,267,426 | ||||||
Essex Property Trust, Inc. | 53,002 | 12,264,663 | ||||||
Mid-America Apartment Communities, Inc. | 94,268 | 11,847,602 | ||||||
UDR, Inc. | 338,826 | 12,028,323 | ||||||
72,570,201 | ||||||||
Multi-line Insurance–0.40% |
| |||||||
American International Group, Inc. | 182,882 | 13,330,269 | ||||||
Assurant, Inc. | 72,281 | 13,115,387 | ||||||
26,445,656 | ||||||||
Multi-Sector Holdings–0.21% |
| |||||||
Berkshire Hathaway, Inc., Class B(b) | 33,942 | 13,895,855 | ||||||
Multi-Utilities–1.78% |
| |||||||
Ameren Corp. | 155,347 | 11,059,153 | ||||||
CenterPoint Energy, Inc. | 416,555 | 11,455,263 | ||||||
CMS Energy Corp. | 206,093 | 11,823,555 | ||||||
Consolidated Edison, Inc. | 130,905 | 11,416,225 | ||||||
Dominion Energy, Inc. | 252,352 | 12,069,996 | ||||||
DTE Energy Co. | 110,343 | 11,955,664 | ||||||
NiSource, Inc. | 455,676 | 11,874,917 | ||||||
Public Service Enterprise Group, Inc. | 193,706 | 12,087,254 | ||||||
Sempra | 165,575 | 11,689,595 | ||||||
WEC Energy Group, Inc. | 142,551 | 11,188,828 | ||||||
116,620,450 | ||||||||
Office REITs–0.38% |
| |||||||
Alexandria Real Estate Equities, Inc.(c) | 100,337 | 12,515,034 | ||||||
Boston Properties, Inc.(c) | 187,020 | 12,103,934 | ||||||
24,618,968 | ||||||||
Oil & Gas Equipment & Services–0.54% |
| |||||||
Baker Hughes Co., Class A | 375,935 | 11,123,917 | ||||||
Halliburton Co. | 346,984 | 12,168,729 | ||||||
Schlumberger N.V. | 245,579 | 11,868,833 | ||||||
35,161,479 | ||||||||
Oil & Gas Exploration & Production–1.88% |
| |||||||
APA Corp. | 351,614 | 10,474,581 | ||||||
ConocoPhillips | 106,936 | 12,034,577 | ||||||
Coterra Energy, Inc. | 485,193 | 12,508,276 | ||||||
Devon Energy Corp. | 271,814 | 11,976,125 | ||||||
Diamondback Energy, Inc. | 80,577 | 14,706,914 | ||||||
EOG Resources, Inc. | 101,884 | 11,661,643 | ||||||
EQT Corp. | 322,766 | 11,990,757 | ||||||
Hess Corp. | 89,102 | 12,986,616 | ||||||
Marathon Oil Corp. | 503,118 | 12,200,612 | ||||||
Pioneer Natural Resources Co. | 53,728 | 12,636,288 | ||||||
123,176,389 | ||||||||
Oil & Gas Refining & Marketing–0.63% |
| |||||||
Marathon Petroleum Corp. | 83,794 | 14,180,458 | ||||||
Phillips 66 | 95,629 | 13,628,089 |
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 | |||||||
Oil & Gas Refining & Marketing–(continued) |
| |||||||
Valero Energy Corp. | 97,639 | $ | 13,812,013 | |||||
41,620,560 | ||||||||
Oil & Gas Storage & Transportation–0.78% |
| |||||||
Kinder Morgan, Inc. | 677,079 | 11,774,404 | ||||||
ONEOK, Inc. | 175,620 | 13,192,574 | ||||||
Targa Resources Corp.(c) | 140,020 | 13,755,565 | ||||||
Williams Cos., Inc. (The) | 341,221 | 12,263,483 | ||||||
50,986,026 | ||||||||
Other Specialized REITs–0.40% |
| |||||||
Iron Mountain, Inc.(c) | 183,106 | 14,399,456 | ||||||
VICI Properties, Inc. | 392,800 | 11,756,504 | ||||||
26,155,960 | ||||||||
Other Specialty Retail–0.65% |
| |||||||
Bath & Body Works, Inc. | 318,986 | 14,577,661 | ||||||
Tractor Supply Co.(c) | 56,510 | 14,371,623 | ||||||
Ulta Beauty, Inc.(b) | 25,136 | 13,788,604 | ||||||
42,737,888 | ||||||||
Packaged Foods & Meats–2.23% |
| |||||||
Campbell Soup Co. | 279,289 | 11,908,883 | ||||||
Conagra Brands, Inc. | 410,574 | 11,528,918 | ||||||
General Mills, Inc. | 185,125 | 11,881,322 | ||||||
Hershey Co. (The) | 64,523 | 12,125,162 | ||||||
Hormel Foods Corp. | 381,908 | 13,488,991 | ||||||
J.M. Smucker Co. (The) | 100,431 | 12,068,793 | ||||||
Kellanova | 223,171 | 12,307,881 | ||||||
Kraft Heinz Co. (The) | 330,784 | 11,670,060 | ||||||
Lamb Weston Holdings, Inc. | 118,704 | 12,132,736 | ||||||
McCormick & Co., Inc. | 180,654 | 12,439,834 | ||||||
Mondelez International, Inc., Class A | 168,578 | 12,317,994 | ||||||
Tyson Foods, Inc., Class A | 233,248 | 12,651,372 | ||||||
146,521,946 | ||||||||
Paper & Plastic Packaging Products & Materials–0.96% |
| |||||||
Amcor PLC | 1,241,893 | 11,251,551 | ||||||
Avery Dennison Corp. | 62,513 | 13,535,940 | ||||||
International Paper Co. | 325,306 | 11,502,820 | ||||||
Packaging Corp. of America | 73,129 | 13,250,243 | ||||||
WestRock Co. | 291,164 | 13,186,818 | ||||||
62,727,372 | ||||||||
Passenger Airlines–0.82% |
| |||||||
American Airlines Group, Inc.(b)(c) | 870,951 | 13,656,512 | ||||||
Delta Air Lines, Inc. | 297,009 | 12,554,570 | ||||||
Southwest Airlines Co. | 416,929 | 14,288,157 | ||||||
United Airlines Holdings, Inc.(b) | 292,514 | 13,306,462 | ||||||
53,805,701 | ||||||||
Passenger Ground Transportation–0.24% |
| |||||||
Uber Technologies, Inc.(b) | 198,982 | 15,819,069 | ||||||
Personal Care Products–0.37% |
| |||||||
Estee Lauder Cos., Inc. (The), Class A | 89,616 | 13,315,145 | ||||||
Kenvue, Inc. | 581,480 | 11,048,120 | ||||||
24,363,265 | ||||||||
Pharmaceuticals–1.71% |
| |||||||
Bristol-Myers Squibb Co. | 238,209 | 12,089,107 | ||||||
Catalent, Inc.(b) | 322,332 | 18,482,517 |
Shares | Value | |||||||
Pharmaceuticals–(continued) |
| |||||||
Eli Lilly and Co. | 20,039 | $ | 15,102,993 | |||||
Johnson & Johnson | 77,609 | 12,524,540 | ||||||
Merck & Co., Inc. | 115,511 | 14,687,224 | ||||||
Pfizer, Inc. | 416,410 | 11,059,849 | ||||||
Viatris, Inc. | 1,219,153 | 15,080,923 | ||||||
Zoetis, Inc. | 64,921 | 12,875,782 | ||||||
111,902,935 | ||||||||
Property & Casualty Insurance–1.90% |
| |||||||
Allstate Corp. (The) | 86,019 | 13,721,751 | ||||||
Arch Capital Group Ltd.(b) | 152,840 | 13,387,256 | ||||||
Chubb Ltd. | 53,763 | 13,530,534 | ||||||
Cincinnati Financial Corp. | 116,579 | 13,290,006 | ||||||
Hartford Financial Services Group, Inc. (The) | 153,095 | 14,672,625 | ||||||
Loews Corp. | 174,088 | 13,079,231 | ||||||
Progressive Corp. (The) | 74,357 | 14,095,113 | ||||||
Travelers Cos., Inc. (The) | 66,116 | 14,608,991 | ||||||
W.R. Berkley Corp. | 168,012 | 14,045,803 | ||||||
124,431,310 | ||||||||
Publishing–0.23% |
| |||||||
News Corp., Class A | 419,960 | 11,288,525 | ||||||
News Corp., Class B | 126,685 | 3,545,913 | ||||||
14,834,438 | ||||||||
Rail Transportation–0.62% |
| |||||||
CSX Corp. | 363,602 | 13,795,060 | ||||||
Norfolk Southern Corp. | 54,228 | 13,740,291 | ||||||
Union Pacific Corp. | 52,157 | 13,231,709 | ||||||
40,767,060 | ||||||||
Real Estate Services–0.40% |
| |||||||
CBRE Group, Inc., Class A(b) | 144,930 | 13,317,618 | ||||||
CoStar Group, Inc.(b) | 147,107 | 12,802,722 | ||||||
26,120,340 | ||||||||
Regional Banks–1.15% |
| |||||||
Citizens Financial Group, Inc. | 404,736 | 12,704,663 | ||||||
Huntington Bancshares, Inc. | 999,524 | 13,033,793 | ||||||
M&T Bank Corp. | 90,345 | 12,624,810 | ||||||
Regions Financial Corp. | 687,172 | 12,802,015 | ||||||
Truist Financial Corp. | 349,091 | 12,211,203 | ||||||
Zions Bancorporation N.A. | 307,842 | 12,138,210 | ||||||
75,514,694 | ||||||||
Reinsurance–0.18% |
| |||||||
Everest Group Ltd. | 31,498 | 11,618,982 | ||||||
Research & Consulting Services–0.84% |
| |||||||
Equifax, Inc. | 52,476 | 14,356,909 | ||||||
Jacobs Solutions, Inc. | 95,217 | 13,963,573 | ||||||
Leidos Holdings, Inc. | 110,464 | 14,123,927 | ||||||
Verisk Analytics, Inc. | 52,036 | 12,587,508 | ||||||
55,031,917 | ||||||||
Restaurants–1.20% |
| |||||||
Chipotle Mexican Grill, Inc.(b) | 5,403 | 14,527,424 | ||||||
Darden Restaurants, Inc.(c) | 75,397 | 12,871,022 | ||||||
Domino’s Pizza, Inc. | 30,347 | 13,606,078 | ||||||
McDonald’s Corp. | 41,973 | 12,267,868 |
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 | |||||||
Restaurants–(continued) |
| |||||||
Starbucks Corp. | 125,454 | $ | 11,905,585 | |||||
Yum! Brands, Inc. | 96,383 | 13,341,335 | ||||||
78,519,312 | ||||||||
Retail REITs–0.92% |
| |||||||
Federal Realty Investment Trust | 120,907 | 12,193,471 | ||||||
Kimco Realty Corp. | 592,108 | 11,700,054 | ||||||
Realty Income Corp. | 222,508 | 11,594,892 | ||||||
Regency Centers Corp. | 187,372 | 11,607,695 | ||||||
Simon Property Group, Inc. | 90,189 | 13,360,599 | ||||||
60,456,711 | ||||||||
Self-Storage REITs–0.38% |
| |||||||
Extra Space Storage, Inc.(c) | 86,417 | 12,182,205 | ||||||
Public Storage | 43,768 | 12,424,422 | ||||||
24,606,627 | ||||||||
Semiconductor Materials & Equipment–1.16% |
| |||||||
Applied Materials, Inc. | 81,128 | 16,357,027 | ||||||
Enphase Energy, Inc.(b) | 116,342 | 14,776,598 | ||||||
KLA Corp. | 22,424 | 15,299,895 | ||||||
Lam Research Corp. | 17,043 | 15,990,595 | ||||||
Teradyne, Inc. | 129,854 | 13,451,576 | ||||||
75,875,691 | ||||||||
Semiconductors–3.23% |
| |||||||
Advanced Micro Devices, Inc.(b) | 92,959 | 17,897,396 | ||||||
Analog Devices, Inc. | 64,821 | 12,433,964 | ||||||
Broadcom, Inc. | 12,691 | 16,504,519 | ||||||
First Solar, Inc.(b) | 82,434 | 12,685,768 | ||||||
Intel Corp. | 280,662 | 12,082,499 | ||||||
Microchip Technology, Inc. | 140,801 | 11,846,996 | ||||||
Micron Technology, Inc. | 159,875 | 14,486,274 | ||||||
Monolithic Power Systems, Inc. | 20,815 | 14,987,633 | ||||||
NVIDIA Corp. | 25,227 | 19,957,584 | ||||||
NXP Semiconductors N.V. (China) | 56,229 | 14,042,068 | ||||||
ON Semiconductor Corp.(b) | 157,398 | 12,421,850 | ||||||
Qorvo, Inc.(b) | 115,266 | 13,203,721 | ||||||
QUALCOMM, Inc. | 90,128 | 14,221,297 | ||||||
Skyworks Solutions, Inc. | 115,478 | 12,115,952 | ||||||
Texas Instruments, Inc. | 76,319 | 12,770,458 | ||||||
211,657,979 | ||||||||
Single-Family Residential REITs–0.19% |
| |||||||
Invitation Homes, Inc. | 362,282 | 12,342,948 | ||||||
Soft Drinks & Non-alcoholic Beverages–0.74% |
| |||||||
Coca-Cola Co. (The) | 204,475 | 12,272,589 | ||||||
Keurig Dr Pepper, Inc. | 377,458 | 11,289,769 | ||||||
Monster Beverage Corp.(b) | 222,260 | 13,135,566 | ||||||
PepsiCo, Inc. | 72,334 | 11,959,704 | ||||||
48,657,628 | ||||||||
Specialty Chemicals–1.54% |
| |||||||
Albemarle Corp.(c) | 93,635 | 12,907,585 | ||||||
Celanese Corp. | 84,785 | 12,884,776 | ||||||
DuPont de Nemours, Inc. | 169,055 | 11,696,915 | ||||||
Eastman Chemical Co. | 141,242 | 12,392,573 | ||||||
Ecolab, Inc. | 62,379 | 14,025,294 | ||||||
International Flavors & Fragrances, Inc. | 156,005 | 11,778,378 | ||||||
PPG Industries, Inc. | 83,236 | 11,786,218 |
Shares | Value | |||||||
Specialty Chemicals–(continued) |
| |||||||
Sherwin-Williams Co. (The) | 41,350 | $ | 13,729,441 | |||||
101,201,180 | ||||||||
Steel–0.43% |
| |||||||
Nucor Corp. | 73,937 | 14,218,085 | ||||||
Steel Dynamics, Inc.(c) | 105,905 | 14,172,207 | ||||||
28,390,292 | ||||||||
Systems Software–1.20% |
| |||||||
Fortinet, Inc.(b) | 229,758 | 15,878,575 | ||||||
Gen Digital, Inc. | 541,050 | 11,627,165 | ||||||
Microsoft Corp. | 32,386 | 13,396,145 | ||||||
Oracle Corp. | 106,683 | 11,914,357 | ||||||
Palo Alto Networks, Inc.(b)(c) | 40,615 | 12,612,988 | ||||||
ServiceNow, Inc.(b) | 17,337 | 13,372,722 | ||||||
78,801,952 | ||||||||
Technology Distributors–0.21% |
| |||||||
CDW Corp. | 56,215 | 13,840,695 | ||||||
Technology Hardware, Storage & Peripherals–1.14% |
| |||||||
Apple, Inc. | 61,929 | 11,193,667 | ||||||
Hewlett Packard Enterprise Co. | 738,858 | 11,252,807 | ||||||
HP, Inc. | 406,798 | 11,524,587 | ||||||
NetApp, Inc. | 135,587 | 12,083,514 | ||||||
Seagate Technology Holdings PLC | 150,392 | 13,993,976 | ||||||
Western Digital Corp.(b) | 250,403 | 14,891,466 | ||||||
74,940,017 | ||||||||
Telecom Tower REITs–0.51% |
| |||||||
American Tower Corp. | 58,050 | 11,543,823 | ||||||
Crown Castle, Inc. | 104,421 | 11,480,045 | ||||||
SBA Communications Corp., Class A | 49,080 | 10,269,008 | ||||||
33,292,876 | ||||||||
Timber REITs–0.20% |
| |||||||
Weyerhaeuser Co. | 388,219 | 13,346,969 | ||||||
Tobacco–0.36% | ||||||||
Altria Group, Inc. | 290,176 | 11,871,100 | ||||||
Philip Morris International, Inc. | 131,248 | 11,807,070 | ||||||
23,678,170 | ||||||||
Trading Companies & Distributors–0.69% |
| |||||||
Fastenal Co. | 194,576 | 14,205,994 | ||||||
United Rentals, Inc. | 24,208 | 16,782,680 | ||||||
W.W. Grainger, Inc. | 14,905 | 14,509,421 | ||||||
45,498,095 | ||||||||
Transaction & Payment Processing Services–1.61% |
| |||||||
Fidelity National Information Services, Inc. | 203,330 | 14,068,403 | ||||||
Fiserv, Inc.(b) | 90,544 | 13,515,503 | ||||||
FLEETCOR Technologies, Inc.(b)(c) | 46,797 | 13,068,998 | ||||||
Global Payments, Inc. | 99,736 | 12,935,759 | ||||||
Jack Henry & Associates, Inc. | 72,769 | 12,645,069 | ||||||
Mastercard, Inc., Class A | 29,078 | 13,805,071 | ||||||
PayPal Holdings, Inc.(b) | 203,330 | 12,268,932 | ||||||
Visa, Inc., Class A(c) | 46,862 | 13,245,076 | ||||||
105,552,811 |
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 | |||||||
Water Utilities–0.16% |
| |||||||
American Water Works Co., Inc. | 91,240 | $ | 10,815,590 | |||||
Wireless Telecommunication Services–0.19% |
| |||||||
T-Mobile US, Inc. | 76,626 | 12,513,026 | ||||||
Total Common Stocks & Other Equity Interests (Cost $3,139,153,062) |
| 6,504,868,619 | ||||||
Money Market Funds–0.78% |
| |||||||
Invesco Government & Agency Portfolio, Institutional Class, 5.24%(d)(g) | 17,979,614 | 17,979,614 | ||||||
Invesco Liquid Assets Portfolio, Institutional Class, 5.41%(d)(g) | 12,835,977 | 12,842,395 | ||||||
Invesco Treasury Portfolio, Institutional Class, 5.23%(d)(g) | 20,548,130 | 20,548,130 | ||||||
Total Money Market Funds (Cost $51,370,139) |
| 51,370,139 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.91% | 6,556,238,758 | |||||||
|
Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds–3.11% |
| |||||||
Invesco Private Government Fund, 5.29%(d)(g)(h) | 57,066,790 | $ | 57,066,790 | |||||
Invesco Private Prime Fund, 5.49%(d)(g)(h) | 146,669,842 | 146,743,177 | ||||||
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $203,823,872) |
| 203,809,967 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES–103.02% (Cost $3,394,347,073) |
| 6,760,048,725 | ||||||
OTHER ASSETS LESS LIABILITIES–(3.02)% |
| (197,999,255 | ) | |||||
| ||||||||
NET ASSETS–100.00% |
| $ | 6,562,049,470 | |||||
|
Investment Abbreviations:
REIT – Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at February 29, 2024. |
(d) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 29, 2024. |
Value August 31, 2023 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value February 29, 2024 | Dividend Income | ||||||||||||||||||||||
Invesco Ltd. | $ | 12,024,042 | $ | 1,206,987 | $ | (618,070) | $ | (168,009 | ) | $ | (303,072) | $ | 12,141,878 | $ 317,965 | ||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | 8,944,423 | 125,709,843 | (116,674,652 | ) | — | — | 17,979,614 | 285,894 | ||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 6,387,428 | 89,792,745 | (83,344,864 | ) | — | 7,086 | 12,842,395 | 210,238 | ||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 10,222,198 | 143,668,392 | (133,342,460 | ) | — | — | 20,548,130 | 325,084 | ||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | ||||||||||||||||||||||||||||
Invesco Private Government Fund | 61,093,654 | 495,183,040 | (499,209,904 | ) | — | — | 57,066,790 | 2,001,142 | * | |||||||||||||||||||
Invesco Private Prime Fund | 157,097,966 | 1,086,844,573 | (1,097,298,625 | ) | (6,853) | 106,116 | 146,743,177 | 5,488,475 | * | |||||||||||||||||||
Total | $ | 255,769,711 | $ | 1,942,405,580 | $ | (1,930,488,575) | $ | (174,862 | ) | $ | (189,870) | $ | 267,321,984 | $ 8,628,798 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(e) | Restricted security. The value of this security at February 29, 2024 represented less than 1% of the Fund’s Net Assets. |
(f) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1J. |
(g) | The rate shown is the 7-day SEC standardized yield as of February 29, 2024. |
(h) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco Equally-Weighted S&P 500 Fund |
Open Futures Contracts | ||||||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation | |||||||||||||||
Equity Risk | ||||||||||||||||||||
CME E-Mini Standard & Poor’s MidCap 400 Index | 100 | March-2024 | $28,926,000 | $251,310 | $251,310 | |||||||||||||||
E-Mini S&P 500 Index | 123 | March-2024 | 31,388,063 | 24,780 | 24,780 | |||||||||||||||
Total Futures Contracts | $276,090 | $276,090 |
Portfolio Composition
By sector, based on Net Assets
as of February 29, 2024
Industrials | 15.96 | % | |||
Financials | 14.36 | ||||
Information Technology | 13.24 | ||||
Health Care | 12.97 | ||||
Consumer Discretionary | 10.69 | ||||
Consumer Staples | 7.21 | ||||
Real Estate | 5.81 | ||||
Materials | 5.43 | ||||
Utilities | 5.40 | ||||
Energy | 4.41 | ||||
Communication Services | 3.65 | ||||
Money Market Funds Plus Other Assets Less Liabilities | 0.87 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 | Invesco Equally-Weighted S&P 500 Fund |
Statement of Assets and Liabilities
February 29, 2024
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value (Cost $3,130,167,703)* | $ | 6,492,726,741 | ||
| ||||
Investments in affiliates, at value | 267,321,984 | |||
| ||||
Other investments: | ||||
Variation margin receivable – futures contracts | 313,677 | |||
| ||||
Receivable for: | ||||
Investments sold | 36,282 | |||
| ||||
Fund shares sold | 2,709,632 | |||
| ||||
Dividends | 10,756,301 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 164,212 | |||
| ||||
Other assets | 377,302 | |||
| ||||
Total assets | 6,774,406,131 | |||
| ||||
Liabilities: | ||||
Payable for: | ||||
Fund shares reacquired | 5,000,284 | |||
| ||||
Collateral upon return of securities loaned | 203,823,872 | |||
| ||||
Accrued fees to affiliates | 2,355,157 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 3,601 | |||
| ||||
Accrued other operating expenses | 938,609 | |||
| ||||
Trustee deferred compensation and retirement plans | 235,138 | |||
| ||||
Total liabilities | 212,356,661 | |||
| ||||
Net assets applicable to shares outstanding | $ | 6,562,049,470 | ||
| ||||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 3,123,242,006 | ||
| ||||
Distributable earnings | 3,438,807,464 | |||
| ||||
$ | 6,562,049,470 | |||
|
Net Assets: | ||||
Class A | $ | 3,017,911,675 | ||
| ||||
Class C | $ | 502,224,786 | ||
| ||||
Class R | $ | 194,467,348 | ||
| ||||
Class Y | $ | 2,181,737,167 | ||
| ||||
Class R6 | $ | 665,708,494 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 42,327,836 | |||
| ||||
Class C | 7,529,083 | |||
| ||||
Class R | 2,753,286 | |||
| ||||
Class Y | 30,112,479 | |||
| ||||
Class R6 | 9,163,930 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 71.30 | ||
| ||||
Maximum offering price per share | $ | 75.45 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 66.70 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 70.63 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 72.45 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 72.64 | ||
|
* | At February 29, 2024, securities with an aggregate value of $202,018,774 were on loan to brokers. |
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 Operations
For the six months ended February 29, 2024
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $30,682) | $ | 63,920,750 | ||
| ||||
Dividends from affiliates (includes net securities lending income of $197,540) | 1,336,721 | |||
| ||||
Total investment income | 65,257,471 | |||
| ||||
Expenses: | ||||
Advisory fees | 3,284,023 | |||
| ||||
Administrative services fees | 426,009 | |||
| ||||
Custodian fees | 32,947 | |||
| ||||
Distribution fees: | ||||
Class A | 3,492,254 | |||
| ||||
Class C | 2,484,818 | |||
| ||||
Class R | 441,745 | |||
| ||||
Transfer agent fees – A, C, R and Y | 3,751,963 | |||
| ||||
Transfer agent fees – R6 | 91,743 | |||
| ||||
Trustees’ and officers’ fees and benefits | 42,390 | |||
| ||||
Registration and filing fees | 86,386 | |||
| ||||
Licensing fees | 563,308 | |||
| ||||
Reports to shareholders | 566,088 | |||
| ||||
Professional services fees | 58,584 | |||
| ||||
Other | 42,669 | |||
| ||||
Total expenses | 15,364,927 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (40,889 | ) | ||
| ||||
Net expenses | 15,324,038 | |||
| ||||
Net investment income | 49,933,433 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | 162,472,600 | |||
| ||||
Affiliated investment securities | (189,870 | ) | ||
| ||||
Futures contracts | 5,300,344 | |||
| ||||
167,583,074 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | 352,042,379 | |||
| ||||
Affiliated investment securities | (174,862 | ) | ||
| ||||
Futures contracts | 444,321 | |||
| ||||
352,311,838 | ||||
| ||||
Net realized and unrealized gain | 519,894,912 | |||
| ||||
Net increase in net assets resulting from operations | $ | 569,828,345 | ||
|
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 Changes in Net Assets
For the six months ended February 29, 2024 and the year ended August 31, 2023
(Unaudited)
February 29, 2024 | August 31, 2023 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 49,933,433 | $ | 92,740,163 | ||||
| ||||||||
Net realized gain | 167,583,074 | 154,092,750 | ||||||
| ||||||||
Change in net unrealized appreciation | 352,311,838 | 247,178,154 | ||||||
| ||||||||
Net increase in net assets resulting from operations | 569,828,345 | 494,011,067 | ||||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (132,438,353 | ) | (209,942,045 | ) | ||||
| ||||||||
Class C | (21,029,947 | ) | (52,192,427 | ) | ||||
| ||||||||
Class R | (8,039,909 | ) | (12,121,490 | ) | ||||
| ||||||||
Class Y | (102,662,759 | ) | (178,908,251 | ) | ||||
| ||||||||
Class R6 | (30,169,212 | ) | (43,715,271 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (294,340,180 | ) | (496,879,484 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | 51,763,706 | 163,416,324 | ||||||
| ||||||||
Class C | (57,976,320 | ) | (140,098,319 | ) | ||||
| ||||||||
Class R | 10,542,442 | 28,083,354 | ||||||
| ||||||||
Class Y | (97,064,735 | ) | (59,477,222 | ) | ||||
| ||||||||
Class R6 | 47,951,762 | 25,417,946 | ||||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (44,783,145 | ) | 17,342,083 | |||||
| ||||||||
Net increase in net assets | 230,705,020 | 14,473,666 | ||||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 6,331,344,450 | 6,316,870,784 | ||||||
| ||||||||
End of period | $ | 6,562,049,470 | $ | 6,331,344,450 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 | Invesco Equally-Weighted S&P 500 Fund |
(Unaudited)
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 | 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 02/29/24 | $68.25 | $0.52 | $ 5.77 | $ 6.29 | $(1.03 | ) | $(2.21 | ) | $(3.24 | ) | $71.30 | 9.42 | % | $3,017,912 | 0.55 | %(d) | 0.55 | %(d) | 1.57 | %(d) | 10 | % | ||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 68.51 | 0.96 | 4.20 | 5.16 | (0.87 | ) | (4.55 | ) | (5.42 | ) | 68.25 | 8.10 | 2,838,398 | 0.52 | 0.52 | 1.44 | 20 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 82.72 | 0.90 | (7.40 | ) | (6.50 | ) | (0.93 | ) | (6.78 | ) | (7.71 | ) | 68.51 | (8.85 | ) | 2,670,328 | 0.53 | 0.53 | 1.18 | 24 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 62.02 | 0.82 | 24.05 | 24.87 | (0.99 | ) | (3.18 | ) | (4.17 | ) | 82.72 | 41.81 | 2,971,521 | 0.52 | 0.52 | 1.13 | 23 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 60.01 | 0.99 | 3.88 | 4.87 | (1.03 | ) | (1.83 | ) | (2.86 | ) | 62.02 | 8.08 | (e) | 2,182,945 | 0.53 | 0.53 | 1.67 | 26 | ||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 64.04 | 0.92 | (1.38 | ) | (0.46 | ) | (0.82 | ) | (2.75 | ) | (3.57 | ) | 60.01 | (0.09 | ) | 2,235,827 | 0.52 | 0.52 | 1.55 | 22 | ||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 63.76 | 0.26 | 5.37 | 5.63 | (0.48 | ) | (2.21 | ) | (2.69 | ) | 66.70 | 9.02 | (f) | 502,225 | 1.29 | (d)(f) | 1.29 | (d)(f) | 0.83 | (d)(f) | 10 | |||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 64.65 | 0.43 | 3.94 | 4.37 | (0.71 | ) | (4.55 | ) | (5.26 | ) | 63.76 | 7.29 | 539,237 | 1.27 | 1.27 | 0.69 | 20 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 78.47 | 0.31 | (7.00 | ) | (6.69 | ) | (0.35 | ) | (6.78 | ) | (7.13 | ) | 64.65 | (9.53 | ) | 689,583 | 1.28 | 1.28 | 0.43 | 24 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 58.96 | 0.30 | 22.86 | 23.16 | (0.47 | ) | (3.18 | ) | (3.65 | ) | 78.47 | 40.82 | (f) | 945,674 | 1.21 | (f) | 1.21 | (f) | 0.44 | (f) | 23 | |||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 57.18 | 0.52 | 3.66 | 4.18 | (0.57 | ) | (1.83 | ) | (2.40 | ) | 58.96 | 7.27 | (e) | 879,154 | 1.28 | 1.28 | 0.92 | 26 | ||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 61.18 | 0.46 | (1.31 | ) | (0.85 | ) | (0.40 | ) | (2.75 | ) | (3.15 | ) | 57.18 | (0.83 | ) | 1,083,024 | 1.27 | 1.27 | 0.80 | 22 | ||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 67.55 | 0.43 | 5.71 | 6.14 | (0.85 | ) | (2.21 | ) | (3.06 | ) | 70.63 | 9.30 | 194,467 | 0.80 | (d) | 0.80 | (d) | 1.32 | (d) | 10 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 67.97 | 0.78 | 4.17 | 4.95 | (0.82 | ) | (4.55 | ) | (5.37 | ) | 67.55 | 7.82 | 175,270 | 0.77 | 0.77 | 1.19 | 20 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 82.12 | 0.70 | (7.34 | ) | (6.64 | ) | (0.73 | ) | (6.78 | ) | (7.51 | ) | 67.97 | (9.08 | ) | 146,993 | 0.78 | 0.78 | 0.93 | 24 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 61.60 | 0.63 | 23.88 | 24.51 | (0.81 | ) | (3.18 | ) | (3.99 | ) | 82.12 | 41.44 | 147,581 | 0.77 | 0.77 | 0.88 | 23 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 59.63 | 0.83 | 3.84 | 4.67 | (0.87 | ) | (1.83 | ) | (2.70 | ) | 61.60 | 7.80 | (e) | 127,559 | 0.78 | 0.78 | 1.42 | 26 | ||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 63.64 | 0.77 | (1.36 | ) | (0.59 | ) | (0.67 | ) | (2.75 | ) | (3.42 | ) | 59.63 | (0.33 | ) | 135,225 | 0.77 | 0.77 | 1.30 | 22 | ||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 69.38 | 0.62 | 5.85 | 6.47 | (1.19 | ) | (2.21 | ) | (3.40 | ) | 72.45 | 9.55 | 2,181,737 | 0.30 | (d) | 0.30 | (d) | 1.82 | (d) | 10 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 69.44 | 1.14 | 4.28 | 5.42 | (0.93 | ) | (4.55 | ) | (5.48 | ) | 69.38 | 8.38 | 2,188,760 | 0.27 | 0.27 | 1.69 | 20 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 83.74 | 1.10 | (7.50 | ) | (6.40 | ) | (1.12 | ) | (6.78 | ) | (7.90 | ) | 69.44 | (8.64 | ) | 2,248,749 | 0.28 | 0.28 | 1.43 | 24 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 62.74 | 1.01 | 24.32 | 25.33 | (1.15 | ) | (3.18 | ) | (4.33 | ) | 83.74 | 42.15 | 2,671,007 | 0.27 | 0.27 | 1.38 | 23 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 60.67 | 1.15 | 3.93 | 5.08 | (1.18 | ) | (1.83 | ) | (3.01 | ) | 62.74 | 8.35 | (e) | 2,106,008 | 0.28 | 0.28 | 1.92 | 26 | ||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 64.71 | 1.08 | (1.40 | ) | (0.32 | ) | (0.97 | ) | (2.75 | ) | (3.72 | ) | 60.67 | 0.18 | 2,902,956 | 0.27 | 0.27 | 1.80 | 22 | |||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 69.58 | 0.65 | 5.88 | 6.53 | (1.26 | ) | (2.21 | ) | (3.47 | ) | 72.64 | 9.61 | 665,708 | 0.20 | (d) | 0.20 | (d) | 1.92 | (d) | 10 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 69.59 | 1.21 | 4.28 | 5.49 | (0.95 | ) | (4.55 | ) | (5.50 | ) | 69.58 | 8.48 | 589,680 | 0.18 | 0.18 | 1.78 | 20 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 83.90 | 1.18 | (7.51 | ) | (6.33 | ) | (1.20 | ) | (6.78 | ) | (7.98 | ) | 69.59 | (8.54 | ) | 561,218 | 0.19 | 0.19 | 1.52 | 24 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 62.86 | 1.09 | 24.36 | 25.45 | (1.23 | ) | (3.18 | ) | (4.41 | ) | 83.90 | 42.30 | 910,010 | 0.16 | 0.16 | 1.49 | 23 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 60.78 | 1.22 | 3.94 | 5.16 | (1.25 | ) | (1.83 | ) | (3.08 | ) | 62.86 | 8.47 | (e) | 740,456 | 0.16 | 0.16 | 2.04 | 26 | ||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 64.83 | 1.15 | (1.40 | ) | (0.25 | ) | (1.05 | ) | (2.75 | ) | (3.80 | ) | 60.78 | 0.29 | 1,024,706 | 0.16 | 0.16 | 1.91 | 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) | Annualized. |
(e) | Amount includes the effect of the Adviser pay-in for an economic loss as a result of a delay in rebalancing to the Index that occurred on April 24, 2020. Had the pay-in not been made, the total return would have been 6.49%, 5.61%, 6.21%, 6.78% and 6.90% for Class A, Class C, Class R, Class Y and Class R6 shares, respectively. |
(f) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.99% and 0.93% for the six months ended February 29, 2024 and the year ended August 31, 2021, 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 29, 2024
(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. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices 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, and their value may be adjusted accordingly. 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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). 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 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.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
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 mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally 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.
17 | Invesco Equally-Weighted S&P 500 Fund |
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
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 an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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. 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.
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, 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
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 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 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. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could |
18 | Invesco Equally-Weighted S&P 500 Fund |
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 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. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 29, 2024, the Fund paid the Adviser $10,981 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliates on the Statement of Operations.
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 instrument or asset. 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. | 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. |
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’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 the Adviser. 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 | 0.120% | |||
| ||||
Over $ 2 billion | 0.100% | |||
|
For the six months ended February 29, 2024, the effective advisory fee rate incurred by the Fund was 0.11%.
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. and a separate sub-advisory agreement with Invesco Capital Management LLC (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 agreed, for an indefinite period, 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 the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least June 30, 2025, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the six months ended February 29, 2024, the Adviser waived advisory fees of $18,639.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
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 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A shares, Class C shares and Class R shares to reimburse IDI for the sale, distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will reimburse 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. Of the Plans 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
19 | Invesco Equally-Weighted S&P 500 Fund |
Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 29, 2024, expenses incurred under these agreements are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 29, 2024, IDI advised the Fund that IDI retained $242,960 in front-end sales commissions from the sale of Class A shares and $3,920 and $8,506 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the six months ended February 29, 2024, the Fund incurred $117,545 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. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of February 29, 2024. 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 | $ | 6,504,868,619 | $ | – | $– | $ | 6,504,868,619 | |||||||||
| ||||||||||||||||
Money Market Funds | 51,370,139 | 203,809,967 | – | 255,180,106 | ||||||||||||
| ||||||||||||||||
Total Investments in Securities | 6,556,238,758 | 203,809,967 | – | 6,760,048,725 | ||||||||||||
| ||||||||||||||||
Other Investments - Assets* | ||||||||||||||||
| ||||||||||||||||
Futures Contracts | 276,090 | – | – | 276,090 | ||||||||||||
| ||||||||||||||||
Total Investments | $ | 6,556,514,848 | $ | 203,809,967 | $– | $ | 6,760,324,815 | |||||||||
|
* | Unrealized appreciation. |
NOTE 4–Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
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 29, 2024:
Value | ||||
Derivative Assets | Equity Risk | |||
| ||||
Unrealized appreciation on futures contracts –Exchange-Traded(a) | $ | 276,090 | ||
| ||||
Derivatives not subject to master netting agreements | (276,090 | ) | ||
| ||||
Total Derivative Assets subject to master netting agreements | $ | – | ||
|
(a) | The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities. |
20 | Invesco Equally-Weighted S&P 500 Fund |
Effect of Derivative Investments for the six months ended February 29, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain on Statement of Operations | ||||
Equity Risk | ||||
Realized Gain: | ||||
Futures contracts | $ | 5,300,344 | ||
| ||||
Change in Net Unrealized Appreciation: | ||||
Futures contracts | 444,321 | |||
| ||||
Total | $ | 5,744,665 | ||
|
The table below summarizes the average notional value of derivatives held during the period.
Futures | ||||
Contracts | ||||
| ||||
Average notional value | $ | 43,484,223 | ||
|
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 29, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $22,250.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 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 fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of August 31, 2023.
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 29, 2024 was $622,562,521 and $931,286,308, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
Aggregate unrealized appreciation of investments | $3,410,384,120 | |||
| ||||
Aggregate unrealized (depreciation) of investments | (100,704,681 | ) | ||
| ||||
Net unrealized appreciation of investments | $3,309,679,439 | |||
|
Cost of investments for tax purposes is $3,450,645,376.
21 | Invesco Equally-Weighted S&P 500 Fund |
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
February 29, 2024(a) | August 31, 2023 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 1,803,056 | $ | 121,171,681 | 3,550,290 | $ | 236,640,132 | ||||||||||
| ||||||||||||||||
Class C | 353,817 | 22,278,153 | 757,037 | 47,474,545 | ||||||||||||
| ||||||||||||||||
Class R | 383,533 | 25,509,163 | 732,338 | 48,409,714 | ||||||||||||
| ||||||||||||||||
Class Y | 2,739,169 | 187,514,849 | 7,498,069 | 509,845,358 | ||||||||||||
| ||||||||||||||||
Class R6 | 1,343,117 | 92,255,897 | 1,356,154 | 91,833,344 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 1,710,055 | 116,608,615 | 2,911,314 | 185,392,475 | ||||||||||||
| ||||||||||||||||
Class C | 302,457 | 19,323,979 | 798,907 | 47,782,627 | ||||||||||||
| ||||||||||||||||
Class R | 118,409 | 8,003,269 | 190,686 | 12,039,940 | ||||||||||||
| ||||||||||||||||
Class Y | 1,122,862 | 77,769,409 | 2,129,933 | 137,636,274 | ||||||||||||
| ||||||||||||||||
Class R6 | 413,764 | 28,727,668 | 641,704 | 41,563,154 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 842,378 | 56,701,155 | 2,184,788 | 145,496,726 | ||||||||||||
| ||||||||||||||||
Class C | (901,268 | ) | (56,701,155 | ) | (2,328,673 | ) | (145,496,726 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (3,614,893 | ) | (242,717,745 | ) | (6,039,107 | ) | (404,113,009 | ) | ||||||||
| ||||||||||||||||
Class C | (682,644 | ) | (42,877,297 | ) | (1,437,750 | ) | (89,858,765 | ) | ||||||||
| ||||||||||||||||
Class R | (343,149 | ) | (22,969,990 | ) | (491,237 | ) | (32,366,300 | ) | ||||||||
| ||||||||||||||||
Class Y | (5,295,744 | ) | (362,348,993 | ) | (10,464,322 | ) | (706,958,854 | ) | ||||||||
| ||||||||||||||||
Class R6 | (1,067,634 | ) | (73,031,803 | ) | (1,588,235 | ) | (107,978,552 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (772,715 | ) | $ | (44,783,145 | ) | 401,896 | $ | 17,342,083 | ||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 54% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, 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. |
22 | 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, 2023 through February 29, 2024.
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 | Ending Account Value | Expenses Paid During | Ending Account Value | Expenses Paid During | Annualized Ratio | |||||||
Class A | $1,000.00 | $1,094.20 | $2.86 | $1,022.13 | $2.77 | 0.55% | ||||||
Class C | 1,000.00 | 1,090.20 | 6.70 | 1,018.45 | 6.47 | 1.29 | ||||||
Class R | 1,000.00 | 1,093.00 | 4.16 | 1,020.89 | 4.02 | 0.80 | ||||||
Class Y | 1,000.00 | 1,095.50 | 1.56 | 1,023.37 | 1.51 | 0.30 | ||||||
Class R6 | 1,000.00 | 1,096.10 | 1.04 | 1,023.87 | 1.01 | 0.20 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2023 through February 29, 2024, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
23 | Invesco Equally-Weighted S&P 500 Fund |
A Special Joint Meeting (“Meeting”) of Shareholders of AIM Counselor Series Trust (Invesco Counselor Series Trust), a Delaware statutory trust (“Trust”), was held on January 16, 2024. The Meeting was held for the following purpose:
(1) | Elect 14 trustees to the Board of Trustees of the Trust, each of whom will serve until his or her successor is duly elected and qualified. |
The results of the voting on the above matter were as follows:
Matter | Votes For | Votes Against/Withheld | ||||||||
| ||||||||||
(1)* | Beth Ann Brown | 3,109,848,785.61 | 65,706,470.15 | |||||||
Carol Deckbar | 3,109,186,378.07 | 66,368,877.70 | ||||||||
Cynthia Hostetler | 3,108,148,647.37 | 67,406,608.40 | ||||||||
Dr. Eli Jones | 3,106,962,123.35 | 68,593,132.42 | ||||||||
Elizabeth Krentzman | 3,109,153,762.02 | 66,401,493.75 | ||||||||
Jeffrey H. Kupor | 3,109,094,174.85 | 66,461,080.92 | ||||||||
Anthony J. LaCava, Jr. | 3,107,453,603.09 | 68,101,652.67 | ||||||||
James Liddy | 3,108,418,832.17 | 67,136,423.60 | ||||||||
Dr. Prema Mathai-Davis | 3,100,922,564.57 | 74,632,691.20 | ||||||||
Joel W. Motley | 3,104,496,522.60 | 71,058,733.17 | ||||||||
Teresa M. Ressel | 3,109,248,693.76 | 66,306,562.01 | ||||||||
Douglas Sharp | 3,108,681,578.09 | 66,873,677.67 | ||||||||
Robert C. Troccoli | 3,104,038,320.81 | 71,516,934.96 | ||||||||
Daniel S. Vandivort | 3,106,373,978.14 | 69,181,277.62 |
* Proposal 1 required approval by a combined vote of all the portfolios of AIM Counselor Series Trust (Invesco Counselor Series Trust).
24 | Invesco Equally-Weighted S&P 500 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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, 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 secu-rities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/ corporate/about-us/esg. 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. This 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 number(s): 811-09913 and 333-36074 | Invesco Distributors, Inc. | MS-EWSP-SAR-1 |
Semiannual Report to Shareholders | February 29, 2024 |
Invesco Equity and Income Fund
Nasdaq:
A: ACEIX ∎ C: ACERX ∎ R: ACESX ∎ Y: ACETX ∎ R5: ACEKX ∎ R6: IEIFX
2 | Fund Performance | |
4 | Schedule of Investments | |
14 | Financial Statements | |
17 | Financial Highlights | |
18 | Notes to Financial Statements | |
25 | Fund Expenses | |
26 | Proxy Results |
Beginning in July 2024, amendments adopted by the Securities and Exchange Commission will substantially impact the design, content, and delivery of shareholder reports. These newly designed shareholder reports will highlight key fund information in a clear and concise format and must be mailed to each shareholder that has not elected to receive the reports electronically. Other information, including financial statements, will no longer be included in the shareholder report but will be available at invesco.com/reports, delivered upon request, and filed on a semi-annual basis on Form N-CSR.
If you would like to receive shareholder reports and other communications electronically instead of by mail, you may make that request 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. If you do not make this request or enroll in e-delivery, you will receive future shareholder reports and other communications by mail.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is 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, 8/31/23 to 2/29/24, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 8.85 | % | ||
Class C Shares | 8.53 | |||
Class R Shares | 8.75 | |||
Class Y Shares | 8.99 | |||
Class R5 Shares | 9.02 | |||
Class R6 Shares | 9.16 | |||
S&P 500 Index▼ (Broad Market Index)* | 13.93 | |||
Russell 1000 Value Index▼ (Broad Market Index*/Style-Specific Index) | 9.27 | |||
Bloomberg U.S. Government/Credit Index▼ (Style-Specific Index) | 2.48 | |||
Lipper Mixed-Asset Target Allocation Growth Funds Index∎ (Peer Group Index) | 9.34 | |||
Source(s): ▼RIMES Technologies Corp.; ∎Lipper Inc. | ||||
*Effective December 15, 2023, the Fund changed its broad-based securities market benchmark from the Russell 1000 Value Index to the S&P 500 Index to reflect that the S&P 500 Index can be considered more broadly representative of the overall applicable securities market. |
| |||
The S&P 500® Index is an unmanaged index considered representative of the US stock market. |
| |||
The Russell 1000® Value Index is an unmanaged index considered representative of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. |
| |||
The Bloomberg 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. |
| |||
The Lipper 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.
|
|
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
2 | Invesco Equity and Income Fund |
Average Annual Total Returns |
| |||
As of 2/29/24, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (8/3/60) | 9.80 | % | ||
10 Years | 6.38 | |||
5 Years | 7.04 | |||
1 Year | 5.13 | |||
Class C Shares | ||||
Inception (7/6/93) | 8.76 | % | ||
10 Years | 6.35 | |||
5 Years | 7.47 | |||
1 Year | 9.52 | |||
Class R Shares | ||||
Inception (10/1/02) | 7.69 | % | ||
10 Years | 6.71 | |||
5 Years | 8.00 | |||
1 Year | 10.98 | |||
Class Y Shares | ||||
Inception (12/22/04) | 7.25 | % | ||
10 Years | 7.25 | |||
5 Years | 8.54 | |||
1 Year | 11.52 | |||
Class R5 Shares | ||||
Inception (6/1/10) | 9.15 | % | ||
10 Years | 7.31 | |||
5 Years | 8.60 | |||
1 Year | 11.57 | |||
Class R6 Shares | ||||
Inception (9/24/12) | 8.74 | % | ||
10 Years | 7.40 | |||
5 Years | 8.68 | |||
1 Year | 11.76 |
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 those for Class A, Class C, Class R and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
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 a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 | Invesco Equity and Income Fund |
February 29, 2024
(Unaudited)
Shares |
Value | |||||||
| ||||||||
Common Stocks & Other Equity Interests–64.52% |
| |||||||
Aerospace & Defense–1.64% |
| |||||||
RTX Corp. | 1,341,067 | $ | 120,253,478 | |||||
| ||||||||
Textron, Inc. | 893,657 | 79,598,029 | ||||||
| ||||||||
199,851,507 | ||||||||
| ||||||||
Air Freight & Logistics–0.79% |
| |||||||
FedEx Corp. | 387,905 | 96,576,708 | ||||||
| ||||||||
Apparel Retail–0.47% | ||||||||
TJX Cos., Inc. (The) | 576,728 | 57,176,814 | ||||||
| ||||||||
Application Software–0.91% |
| |||||||
Salesforce, Inc.(b) | 358,212 | 110,623,030 | ||||||
| ||||||||
Asset Management & Custody Banks–1.10% |
| |||||||
KKR & Co., Inc., Class A | 1,363,648 | 133,992,053 | ||||||
| ||||||||
Automobile Manufacturers–0.80% |
| |||||||
General Motors Co. | 2,363,932 | 96,873,933 | ||||||
| ||||||||
Broadline Retail–1.52% |
| |||||||
Amazon.com, Inc.(b) | 1,048,992 | 185,419,826 | ||||||
| ||||||||
Building Products–1.20% |
| |||||||
Johnson Controls International PLC | 2,468,537 | 146,310,188 | ||||||
| ||||||||
Cable & Satellite–0.50% | ||||||||
Comcast Corp., Class A | 1,430,338 | 61,289,983 | ||||||
| ||||||||
Cargo Ground Transportation–0.57% |
| |||||||
J.B. Hunt Transport Services, Inc. | 334,309 | 68,971,290 | ||||||
| ||||||||
Casinos & Gaming–0.68% |
| |||||||
Las Vegas Sands Corp. | 1,506,788 | 82,150,082 | ||||||
| ||||||||
Communications Equipment–1.00% |
| |||||||
Cisco Systems, Inc. | 2,520,741 | 121,928,242 | ||||||
| ||||||||
Consumer Finance–0.64% |
| |||||||
American Express Co. | 354,733 | 77,835,515 | ||||||
| ||||||||
Distributors–0.69% |
| |||||||
Genuine Parts Co. | 562,080 | 83,896,061 | ||||||
| ||||||||
Diversified Banks–5.85% |
| |||||||
Bank of America Corp. | 7,337,851 | 253,302,616 | ||||||
| ||||||||
PNC Financial Services Group, Inc. (The) | 802,049 | 118,061,613 | ||||||
| ||||||||
Wells Fargo & Co. | 6,119,493 | 340,182,616 | ||||||
| ||||||||
711,546,845 | ||||||||
| ||||||||
Electric Utilities–1.94% |
| |||||||
American Electric Power Co., Inc. | 924,239 | 78,735,920 | ||||||
| ||||||||
FirstEnergy Corp. | 1,764,345 | 64,592,671 | ||||||
| ||||||||
PPL Corp. | 3,499,917 | 92,292,811 | ||||||
| ||||||||
235,621,402 | ||||||||
| ||||||||
Electrical Components & Equipment–0.67% |
| |||||||
Emerson Electric Co. | 761,716 | 81,389,355 | ||||||
|
Shares |
Value | |||||||
| ||||||||
Electronic Manufacturing Services–0.63% |
| |||||||
TE Connectivity Ltd. | 533,007 | $ | 76,518,485 | |||||
| ||||||||
Fertilizers & Agricultural Chemicals–0.50% |
| |||||||
Corteva, Inc. | 1,146,322 | 61,351,153 | ||||||
| ||||||||
Food Distributors–1.55% | ||||||||
Sysco Corp. | 1,352,496 | 109,511,601 | ||||||
| ||||||||
US Foods Holding Corp.(b) | 1,560,825 | 79,274,302 | ||||||
| ||||||||
188,785,903 | ||||||||
| ||||||||
Gold–0.41% |
| |||||||
Barrick Gold Corp. (Canada) | 3,362,884 | 49,299,879 | ||||||
| ||||||||
Health Care Equipment–1.68% |
| |||||||
GE HealthCare Technologies, | 820,874 | 74,929,379 | ||||||
| ||||||||
Medtronic PLC | 1,556,486 | 129,748,673 | ||||||
| ||||||||
204,678,052 | ||||||||
| ||||||||
Health Care Facilities–0.46% |
| |||||||
Universal Health Services, Inc., Class B | 334,251 | 55,839,972 | ||||||
| ||||||||
Health Care Services–1.51% | ||||||||
Cigna Group (The) | 311,114 | 104,577,860 | ||||||
| ||||||||
CVS Health Corp. | 1,070,087 | 79,582,370 | ||||||
| ||||||||
184,160,230 | ||||||||
| ||||||||
Industrial Machinery & Supplies & Components–1.75% |
| |||||||
Parker-Hannifin Corp. | 275,967 | 147,766,530 | ||||||
| ||||||||
Stanley Black & Decker, Inc. | 730,382 | 65,215,809 | ||||||
| ||||||||
212,982,339 | ||||||||
| ||||||||
Insurance Brokers–1.18% |
| |||||||
Willis Towers Watson PLC | 528,292 | 144,017,682 | ||||||
| ||||||||
Integrated Oil & Gas–3.69% | ||||||||
Chevron Corp. | 792,628 | 120,487,382 | ||||||
| ||||||||
Exxon Mobil Corp.(c) | 1,671,691 | 174,725,143 | ||||||
| ||||||||
Shell PLC (Netherlands) | 2,429,838 | 75,154,431 | ||||||
| ||||||||
Suncor Energy, Inc. (Canada)(c) | 2,286,049 | 78,545,824 | ||||||
| ||||||||
448,912,780 | ||||||||
| ||||||||
Interactive Media & Services–2.29% |
| |||||||
Alphabet, Inc., Class A(b) | 1,280,968 | 177,362,829 | ||||||
| ||||||||
Meta Platforms, Inc., Class A | 205,728 | 100,833,465 | ||||||
| ||||||||
278,196,294 | ||||||||
| ||||||||
Investment Banking & Brokerage–2.00% |
| |||||||
Charles Schwab Corp. (The) | 1,556,433 | 103,938,596 | ||||||
| ||||||||
Goldman Sachs Group, Inc. (The) | 357,970 | 139,268,228 | ||||||
| ||||||||
243,206,824 | ||||||||
| ||||||||
IT Consulting & Other Services–0.83% |
| |||||||
Cognizant Technology Solutions Corp., Class A | 1,282,126 | 101,313,597 | ||||||
| ||||||||
Managed Health Care–1.82% | ||||||||
Centene Corp.(b) | 1,324,998 | 103,919,593 | ||||||
| ||||||||
Elevance Health, Inc. | 119,597 | 59,947,996 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 | Invesco Equity and Income Fund |
Shares |
Value | |||||||
| ||||||||
Managed Health Care–(continued) |
| |||||||
Humana, Inc. | 164,137 | $ | 57,500,474 | |||||
| ||||||||
221,368,063 | ||||||||
| ||||||||
Movies & Entertainment–0.91% |
| |||||||
Walt Disney Co. (The) | 990,006 | 110,464,869 | ||||||
| ||||||||
Multi-line Insurance–1.25% | ||||||||
American International Group, Inc. | 2,092,298 | 152,507,601 | ||||||
| ||||||||
Oil & Gas Exploration & Production–1.51% |
| |||||||
ConocoPhillips | 1,637,171 | 184,247,224 | ||||||
| ||||||||
Oil & Gas Refining & Marketing–0.52% |
| |||||||
Phillips 66 | 447,997 | 63,844,052 | ||||||
| ||||||||
Packaged Foods & Meats–0.68% |
| |||||||
Kraft Heinz Co. (The) | 2,330,065 | 82,204,693 | ||||||
| ||||||||
Pharmaceuticals–4.66% |
| |||||||
Bristol-Myers Squibb Co. | 1,996,160 | 101,305,120 | ||||||
| ||||||||
GSK PLC | 3,284,513 | 68,706,885 | ||||||
| ||||||||
Johnson & Johnson | 931,345 | 150,300,456 | ||||||
| ||||||||
Merck & Co., Inc. | 749,839 | 95,342,029 | ||||||
| ||||||||
Pfizer, Inc. | 2,150,019 | 57,104,505 | ||||||
| ||||||||
Sanofi S.A. | 982,631 | 93,659,014 | ||||||
| ||||||||
566,418,009 | ||||||||
| ||||||||
Property & Casualty Insurance–0.76% |
| |||||||
Allstate Corp. (The) | 581,791 | 92,807,300 | ||||||
| ||||||||
Rail Transportation–1.35% | ||||||||
CSX Corp. | 2,820,600 | 107,013,564 | ||||||
| ||||||||
Norfolk Southern Corp. | 225,490 | 57,134,656 | ||||||
| ||||||||
164,148,220 | ||||||||
| ||||||||
Real Estate Services–1.55% | ||||||||
CBRE Group, Inc., Class A(b) | 2,057,059 | 189,023,152 | ||||||
| ||||||||
Regional Banks–0.78% | ||||||||
Citizens Financial Group, Inc. | 3,039,233 | 95,401,524 | ||||||
| ||||||||
Semiconductor Materials & Equipment–0.68% |
| |||||||
Lam Research Corp. | 88,607 | 83,135,518 | ||||||
| ||||||||
Semiconductors–2.32% | ||||||||
Intel Corp. | 2,532,232 | 109,012,588 | ||||||
| ||||||||
Micron Technology, Inc. | 974,697 | 88,317,295 | ||||||
| ||||||||
NXP Semiconductors N.V. (China) | 338,618 | 84,563,073 | ||||||
| ||||||||
281,892,956 | ||||||||
| ||||||||
Specialty Chemicals–1.10% | ||||||||
DuPont de Nemours, Inc. | 1,133,610 | 78,434,476 | ||||||
| ||||||||
PPG Industries, Inc. | 388,230 | 54,973,368 | ||||||
| ||||||||
133,407,844 | ||||||||
| ||||||||
Systems Software–0.87% | ||||||||
Oracle Corp. | 945,347 | 105,576,353 | ||||||
| ||||||||
Tobacco–1.06% | ||||||||
Philip Morris International, Inc. | 1,433,923 | 128,995,713 | ||||||
| ||||||||
Trading Companies & Distributors–1.11% |
| |||||||
Ferguson PLC | 637,587 | 134,817,771 | ||||||
|
Shares |
Value | |||||||
| ||||||||
Transaction & Payment Processing Services–1.10% |
| |||||||
Fiserv, Inc.(b) | 893,893 | $ | 133,431,408 | |||||
| ||||||||
Wireless Telecommunication Services–1.04% |
| |||||||
T-Mobile US, Inc. | 776,240 | 126,759,992 | ||||||
| ||||||||
Total Common Stocks & Other Equity Interests |
| 7,851,168,286 | ||||||
| ||||||||
Principal Amount | ||||||||
U.S. Dollar Denominated Bonds & Notes–20.25% |
| |||||||
Advertising–0.05% | ||||||||
Omnicom Group, Inc./Omnicom Capital, Inc., 3.60%, 04/15/2026 | $ | 5,660,000 | 5,485,525 | |||||
| ||||||||
Aerospace & Defense–0.41% | ||||||||
Boeing Co. (The), 5.81%, 05/01/2050 | 16,525,000 | 15,945,292 | ||||||
| ||||||||
Lockheed Martin Corp., | ||||||||
3.55%, 01/15/2026(c) | 14,804,000 | 14,431,722 | ||||||
| ||||||||
4.15%, 06/15/2053 | 5,231,000 | 4,345,364 | ||||||
| ||||||||
5.20%, 02/15/2064(c) | 5,558,000 | 5,433,654 | ||||||
| ||||||||
RTX Corp., | ||||||||
4.45%, 11/16/2038 | 3,239,000 | 2,889,431 | ||||||
| ||||||||
6.40%, 03/15/2054(c) | 6,223,000 | 6,893,672 | ||||||
| ||||||||
49,939,135 | ||||||||
| ||||||||
Agricultural Products & Services–0.03% |
| |||||||
Ingredion, Inc., 6.63%, 04/15/2037 | 3,940,000 | 4,254,106 | ||||||
| ||||||||
Air Freight & Logistics–0.05% |
| |||||||
FedEx Corp., 4.90%, 01/15/2034(c) | 4,310,000 | 4,200,397 | ||||||
| ||||||||
United Parcel Service, Inc., 3.40%, 11/15/2046 | 2,608,000 | 1,995,365 | ||||||
| ||||||||
6,195,762 | ||||||||
| ||||||||
Alternative Carriers–0.47% |
| |||||||
Liberty Latin America Ltd. (Puerto Rico), Conv., 2.00%, 07/15/2024 | 28,911,000 | 28,188,220 | ||||||
| ||||||||
Match Group Financeco 2, Inc., Conv., 0.88%, 06/15/2026(d) | 16,590,000 | 15,100,531 | ||||||
| ||||||||
Match Group Financeco 3, Inc., Conv., 2.00%, 01/15/2030(d) | 16,603,000 | 14,245,526 | ||||||
| ||||||||
57,534,277 | ||||||||
| ||||||||
Application Software–1.31% | ||||||||
Dropbox, Inc., Conv., 0.00%, 03/01/2026(e) | 51,429,000 | 48,471,833 | ||||||
| ||||||||
Envestnet, Inc., Conv., 2.63%, 12/01/2027 | 23,029,000 | 23,172,931 | ||||||
| ||||||||
Salesforce, Inc., 2.70%, 07/15/2041 | 10,414,000 | 7,440,152 | ||||||
| ||||||||
Splunk, Inc., Conv., 1.13%, 06/15/2027 | 76,768,000 | 76,038,704 | ||||||
| ||||||||
Workday, Inc., 3.50%, 04/01/2027 | 5,033,000 | 4,797,604 | ||||||
| ||||||||
159,921,224 | ||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Equity and Income Fund |
Principal Amount | Value | |||||||
| ||||||||
Asset Management & Custody Banks–0.30% |
| |||||||
Apollo Management Holdings L.P., 4.00%, 05/30/2024(d) | $ | 4,260,000 | $ | 4,239,653 | ||||
| ||||||||
BlackRock, Inc., 4.75%, 05/25/2033 | 14,671,000 | 14,413,108 | ||||||
| ||||||||
Brookfield Corp. (Canada), 4.00%, 01/15/2025 | 4,515,000 | 4,455,160 | ||||||
| ||||||||
KKR Group Finance Co. III LLC, 5.13%, 06/01/2044(c)(d) | 3,217,000 | 2,933,381 | ||||||
| ||||||||
KKR Group Finance Co. XII LLC, 4.85%, 05/17/2032(d) | 11,051,000 | 10,555,732 | ||||||
| ||||||||
36,597,034 | ||||||||
| ||||||||
Automobile Manufacturers–0.08% |
| |||||||
General Motors Co., 6.60%, 04/01/2036 | 4,317,000 | 4,545,082 | ||||||
| ||||||||
Honda Motor Co. Ltd. (Japan), 2.97%, 03/10/2032(c) | 5,448,000 | 4,789,223 | ||||||
| ||||||||
9,334,305 | ||||||||
| ||||||||
Biotechnology–1.26% |
| |||||||
AbbVie, Inc., | ||||||||
4.50%, 05/14/2035 | 7,233,000 | 6,893,517 | ||||||
| ||||||||
4.05%, 11/21/2039(c) | 13,812,000 | 12,116,196 | ||||||
| ||||||||
4.85%, 06/15/2044(c) | 5,815,000 | 5,507,873 | ||||||
| ||||||||
Alnylam Pharmaceuticals, Inc., Conv., 1.00%, 09/15/2027 | 35,337,000 | 33,221,958 | ||||||
| ||||||||
Amgen, Inc., 5.25%, 03/02/2025 | 7,947,000 | 7,928,977 | ||||||
| ||||||||
Halozyme Therapeutics, Inc., Conv., 0.25%, 03/01/2027 | 49,785,000 | 43,895,890 | ||||||
| ||||||||
Jazz Investments I Ltd., Conv., 2.00%, 06/15/2026 | 26,544,000 | 26,398,008 | ||||||
| ||||||||
Neurocrine Biosciences, Inc., Conv., 2.25%, 05/15/2024 | 10,420,000 | 17,911,980 | ||||||
| ||||||||
153,874,399 | ||||||||
| ||||||||
Brewers–0.24% |
| |||||||
Anheuser-Busch Cos. LLC/Anheuser- Busch InBev Worldwide, Inc. (Belgium), | ||||||||
4.70%, 02/01/2036 | 10,870,000 | 10,408,822 | ||||||
| ||||||||
4.90%, 02/01/2046(c) | 6,301,000 | 5,829,024 | ||||||
| ||||||||
Heineken N.V. (Netherlands), 3.50%, 01/29/2028(d) | 9,734,000 | 9,294,123 | ||||||
| ||||||||
Molson Coors Beverage Co., 4.20%, 07/15/2046(c) | 4,057,000 | 3,317,031 | ||||||
| ||||||||
28,849,000 | ||||||||
| ||||||||
Broadcasting–0.03% |
| |||||||
Discovery Communications LLC, 4.90%, 03/11/2026 | 3,773,000 | 3,716,273 | ||||||
| ||||||||
Broadline Retail–0.08% |
| |||||||
Amazon.com, Inc., 2.88%, 05/12/2041 | 13,606,000 | 10,227,011 | ||||||
| ||||||||
Building Products–0.04% |
| |||||||
Carrier Global Corp., 6.20%, 03/15/2054(c) | 4,481,000 | 4,894,622 | ||||||
|
Principal Amount | Value | |||||||
| ||||||||
Cable & Satellite–1.10% | ||||||||
Cable One, Inc., | ||||||||
Conv., | $ | 51,123,000 | $ | 43,837,972 | ||||
| ||||||||
1.13%, 03/15/2028 | 26,544,000 | 19,783,242 | ||||||
| ||||||||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 4.91%, 07/23/2025 | 5,660,000 | 5,583,199 | ||||||
| ||||||||
Comcast Corp., | ||||||||
3.15%, 03/01/2026 | 11,319,000 | 10,926,746 | ||||||
| ||||||||
4.15%, 10/15/2028(c) | 9,915,000 | 9,622,411 | ||||||
| ||||||||
3.90%, 03/01/2038 | 8,010,000 | 6,873,546 | ||||||
| ||||||||
2.89%, 11/01/2051 | 3,128,000 | 1,982,110 | ||||||
| ||||||||
2.94%, 11/01/2056(c) | 4,539,000 | 2,795,405 | ||||||
| ||||||||
Cox Communications, Inc., | 2,044,000 | 1,248,084 | ||||||
| ||||||||
Liberty Broadband Corp., Conv., 3.13%, 04/06/2026(d)(f) | 33,219,000 | 31,482,247 | ||||||
| ||||||||
134,134,962 | ||||||||
| ||||||||
Commercial & Residential Mortgage Finance–0.06% |
| |||||||
Aviation Capital Group LLC, | 7,745,000 | 7,592,519 | ||||||
| ||||||||
Commodity Chemicals–0.04% |
| |||||||
LYB Finance Co. B.V. (Netherlands), 8.10%, 03/15/2027(d) | 4,638,000 | 4,939,655 | ||||||
| ||||||||
Communications Equipment–0.03% |
| |||||||
Cisco Systems, Inc., 5.30%, 02/26/2054 | 3,481,000 | 3,525,938 | ||||||
| ||||||||
Computer & Electronics Retail–0.09% |
| |||||||
Dell International LLC/EMC Corp., | ||||||||
6.02%, 06/15/2026 | 10,992,000 | 11,115,777 | ||||||
| ||||||||
8.35%, 07/15/2046 | 30,000 | 37,993 | ||||||
| ||||||||
11,153,770 | ||||||||
| ||||||||
Consumer Finance–0.32% |
| |||||||
American Express Co., | ||||||||
3.38%, 05/03/2024 | 24,770,000 | 24,665,310 | ||||||
| ||||||||
3.63%, 12/05/2024(c) | 3,423,000 | 3,377,189 | ||||||
| ||||||||
General Motors Financial Co., Inc., 5.25%, 03/01/2026 | 5,467,000 | 5,450,763 | ||||||
| ||||||||
Synchrony Financial, 3.95%, 12/01/2027 | 5,795,000 | 5,370,852 | ||||||
| ||||||||
38,864,114 | ||||||||
| ||||||||
Consumer Staples Merchandise Retail–0.15% |
| |||||||
Dollar General Corp., 4.25%, 09/20/2024(c) | 18,724,000 | 18,568,363 | ||||||
| ||||||||
Diversified Banks–1.01% |
| |||||||
Bank of America Corp., | ||||||||
3.25%, 10/21/2027 | 5,705,000 | 5,394,319 | ||||||
| ||||||||
2.57%, 10/20/2032(g) | 8,683,000 | 7,119,073 | ||||||
| ||||||||
BBVA Bancomer S.A. (Mexico), 4.38%, 04/10/2024(d) | 6,875,000 | 6,862,734 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Equity and Income Fund |
Principal Amount | Value | |||||||
| ||||||||
Diversified Banks–(continued) |
| |||||||
Citigroup, Inc., | ||||||||
3.67%, 07/24/2028(g) | $ | 5,405,000 | $ | 5,126,917 | ||||
| ||||||||
6.68%, 09/13/2043(c) | 8,000,000 | 8,833,546 | ||||||
| ||||||||
5.30%, 05/06/2044(c) | 2,765,000 | 2,642,967 | ||||||
| ||||||||
4.75%, 05/18/2046 | 4,145,000 | 3,651,055 | ||||||
| ||||||||
HSBC Holdings PLC (United Kingdom), 2.63%, 11/07/2025(c)(g) | 18,945,000 | 18,531,305 | ||||||
| ||||||||
JPMorgan Chase & Co., |
| |||||||
3.20%, 06/15/2026(c) | 4,365,000 | 4,201,804 | ||||||
| ||||||||
3.51%, 01/23/2029(g) | 11,170,000 | 10,524,345 | ||||||
| ||||||||
4.26%, 02/22/2048(g) | 5,355,000 | 4,553,664 | ||||||
| ||||||||
3.90%, 01/23/2049(c)(g) | 11,170,000 | 8,925,933 | ||||||
| ||||||||
Mizuho Financial Group Cayman 3 Ltd. (Japan), 4.60%, 03/27/2024(d) | 545,000 | 544,422 | ||||||
| ||||||||
PNC Financial Services Group, Inc. (The), | ||||||||
3.45%, 04/23/2029(c) | 7,450,000 | 6,882,748 | ||||||
| ||||||||
6.88%, 10/20/2034(g) | 6,126,000 | 6,639,644 | ||||||
| ||||||||
U.S. Bancorp, Series W, 3.10%, 04/27/2026(c) | 3,245,000 | 3,100,281 | ||||||
| ||||||||
Wells Fargo & Co., | ||||||||
3.55%, 09/29/2025(c) | 6,840,000 | 6,665,378 | ||||||
| ||||||||
4.10%, 06/03/2026 | 4,515,000 | 4,398,288 | ||||||
| ||||||||
4.65%, 11/04/2044(c) | 9,115,000 | 7,876,918 | ||||||
| ||||||||
122,475,341 | ||||||||
| ||||||||
Diversified Financial Services–0.06% |
| |||||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust (Ireland), 3.85%, 10/29/2041 | 4,009,000 | 3,115,171 | ||||||
| ||||||||
Blackstone Holdings Finance Co. LLC, 5.00%, | 3,975,000 | 3,602,642 | ||||||
| ||||||||
6,717,813 | ||||||||
| ||||||||
Diversified Metals & Mining–0.02% |
| |||||||
Rio Tinto Finance (USA) Ltd. (Australia), 7.13%, 07/15/2028 | 2,175,000 | 2,370,373 | ||||||
| ||||||||
Diversified REITs–0.07% | ||||||||
CubeSmart L.P., 2.50%, 02/15/2032 | 10,561,000 | 8,540,814 | ||||||
| ||||||||
Drug Retail–0.07% | ||||||||
CVS Pass-Through Trust, 6.04%, 12/10/2028 | 4,026,619 | 4,051,886 | ||||||
| ||||||||
Walgreens Boots Alliance, Inc., 4.50%, 11/18/2034(c) | 4,519,000 | 4,009,018 | ||||||
| ||||||||
8,060,904 | ||||||||
| ||||||||
Electric Utilities–1.38% | ||||||||
Constellation Energy Generation LLC, 6.50%, 10/01/2053(c) | 2,992,000 | 3,289,160 | ||||||
| ||||||||
Electricite de France S.A. (France), 4.88%, 01/22/2044(d) | 9,110,000 | 7,973,386 | ||||||
| ||||||||
FirstEnergy Corp., Conv., 4.00%, 05/01/2026(d) | 54,373,000 | 53,666,151 | ||||||
| ||||||||
Georgia Power Co., Series B, 3.70%, 01/30/2050 | 3,665,000 | 2,773,241 | ||||||
|
Principal Amount | Value | |||||||
| ||||||||
Electric Utilities–(continued) |
| |||||||
National Rural Utilities Cooperative Finance Corp., 2.75%, 04/15/2032(c) | $ | 9,898,000 | $ | 8,322,264 | ||||
| ||||||||
NextEra Energy Capital Holdings, Inc., | ||||||||
5.75%, 09/01/2025 | 22,708,000 | 22,836,243 | ||||||
| ||||||||
3.55%, 05/01/2027 | 5,572,000 | 5,305,538 | ||||||
| ||||||||
Oglethorpe Power Corp., 4.55%, 06/01/2044 | 5,806,000 | 4,813,352 | ||||||
| ||||||||
PPL Capital Funding, Inc., Conv., 2.88%, 03/15/2028 | 54,663,000 | 51,795,926 | ||||||
| ||||||||
PPL Electric Utilities Corp., 6.25%, 05/15/2039 | 355,000 | 385,118 | ||||||
| ||||||||
Xcel Energy, Inc., 3.50%, 12/01/2049 | 10,280,000 | 7,087,077 | ||||||
| ||||||||
168,247,456 | ||||||||
| ||||||||
Electrical Components & Equipment–0.02% |
| |||||||
Rockwell Automation, Inc., 1.75%, 08/15/2031(c) | 2,729,000 | 2,194,075 | ||||||
| ||||||||
Financial Exchanges & Data–0.02% |
| |||||||
Nasdaq, Inc., 5.95%, 08/15/2053(c) | 2,575,000 | 2,651,942 | ||||||
| ||||||||
Food Distributors–0.08% |
| |||||||
Sysco Corp., 3.75%, 10/01/2025 | 9,593,000 | 9,356,948 | ||||||
| ||||||||
Health Care Equipment–0.38% |
| |||||||
Becton, Dickinson and Co., 4.88%, 05/15/2044 | 3,739,000 | 3,306,986 | ||||||
| ||||||||
Integra LifeSciences Holdings Corp., Conv., 0.50%, 08/15/2025 | 42,831,000 | 40,668,035 | ||||||
| ||||||||
Medtronic, Inc., 4.38%, 03/15/2035(c) | 2,601,000 | 2,453,314 | ||||||
| ||||||||
46,428,335 | ||||||||
| ||||||||
Health Care REITs–0.16% |
| |||||||
Welltower OP LLC, Conv., 2.75%, 05/15/2028(d) | 17,592,000 | 19,470,727 | ||||||
| ||||||||
Health Care Services–0.12% |
| |||||||
Cigna Group (The), 4.80%, 08/15/2038(c) | 3,240,000 | 3,006,714 | ||||||
| ||||||||
CVS Health Corp., 3.38%, 08/12/2024(c) | 3,740,000 | 3,699,473 | ||||||
| ||||||||
NXP B.V./NXP Funding LLC (China), 5.35%, 03/01/2026 | 7,660,000 | 7,657,056 | ||||||
| ||||||||
14,363,243 | ||||||||
| ||||||||
Health Care Supplies–0.14% |
| |||||||
Merit Medical Systems, Inc., Conv., 3.00%, 02/01/2029(d) | 15,227,000 | 16,844,869 | ||||||
| ||||||||
Home Improvement Retail–0.20% |
| |||||||
Home Depot, Inc. (The), 5.13%, 04/30/2025 | 20,528,000 | 20,542,751 | ||||||
| ||||||||
Lowe’s Cos., Inc., 4.25%, 04/01/2052(c) | 4,741,000 | 3,812,237 | ||||||
| ||||||||
24,354,988 | ||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Equity and Income Fund |
Principal Amount | Value | |||||||
| ||||||||
Homebuilding–0.02% |
| |||||||
M.D.C. Holdings, Inc., 6.00%, 01/15/2043(c) | $ | 2,117,000 | $ | 2,114,536 | ||||
| ||||||||
Hotels, Resorts & Cruise Lines–0.39% |
| |||||||
Airbnb, Inc., Conv., 0.00%, 03/15/2026(e) | 52,169,000 | 47,836,913 | ||||||
| ||||||||
Industrial Conglomerates–0.13% |
| |||||||
Honeywell International, Inc., 4.50%, 01/15/2034(c) | 16,007,000 | 15,404,517 | ||||||
| ||||||||
Industrial Machinery & Supplies & Components–0.25% |
| |||||||
John Bean Technologies Corp., Conv., 0.25%, 05/15/2026 | 33,206,000 | 30,522,955 | ||||||
| ||||||||
Insurance Brokers–0.02% |
| |||||||
Willis North America, Inc., 3.60%, 05/15/2024 | 2,470,000 | 2,459,069 | ||||||
| ||||||||
Integrated Oil & Gas–0.36% |
| |||||||
BP Capital Markets America, Inc., 2.94%, 06/04/2051 | 10,062,000 | 6,599,610 | ||||||
| ||||||||
Chevron Corp., 2.95%, 05/16/2026(c) | 9,807,000 | 9,423,913 | ||||||
| ||||||||
Exxon Mobil Corp., | ||||||||
2.71%, 03/06/2025 | 5,658,000 | 5,526,030 | ||||||
| ||||||||
3.04%, 03/01/2026 | 11,316,000 | 10,921,263 | ||||||
| ||||||||
Shell International Finance B.V. (Netherlands), 3.25%, 05/11/2025 | 11,316,000 | 11,069,293 | ||||||
| ||||||||
43,540,109 | ||||||||
| ||||||||
Integrated Telecommunication Services–0.31% |
| |||||||
AT&T, Inc., | ||||||||
4.30%, 02/15/2030(c) | 3,526,000 | 3,364,588 | ||||||
| ||||||||
3.55%, 09/15/2055 | 4,562,000 | 3,110,998 | ||||||
| ||||||||
3.80%, 12/01/2057 | 3,619,000 | 2,549,607 | ||||||
| ||||||||
Orange S.A. (France), 9.00%, 03/01/2031 | 4,443,000 | 5,372,688 | ||||||
| ||||||||
Telefonica Emisiones S.A. (Spain), 5.21%, 03/08/2047 | 6,725,000 | 6,053,280 | ||||||
| ||||||||
Verizon Communications, Inc., | ||||||||
3.38%, 02/15/2025 | 13,206,000 | 12,950,018 | ||||||
| ||||||||
3.40%, 03/22/2041 | 5,788,000 | 4,437,241 | ||||||
| ||||||||
37,838,420 | ||||||||
| ||||||||
Interactive Home Entertainment–0.03% |
| |||||||
Take-Two Interactive Software, Inc., 3.70%, 04/14/2027(c) | 3,559,000 | 3,404,322 | ||||||
| ||||||||
Interactive Media & Services–0.39% |
| |||||||
Meta Platforms, Inc., 5.60%, 05/15/2053(c) | 14,968,000 | 15,508,247 | ||||||
| ||||||||
Snap, Inc., Conv., 0.75%, 08/01/2026 | 33,200,000 | 31,515,100 | ||||||
| ||||||||
47,023,347 | ||||||||
| ||||||||
Internet Services & Infrastructure–0.24% |
| |||||||
Shopify, Inc. (Canada), Conv., 0.13%, 11/01/2025 | 31,379,000 | 29,810,050 | ||||||
| ||||||||
Investment Banking & Brokerage–1.86% |
| |||||||
Goldman Sachs Group, Inc. (The), | ||||||||
4.25%, 10/21/2025 | 5,807,000 | 5,706,012 | ||||||
| ||||||||
2.91%, 07/21/2042(c)(g) | 3,205,000 | 2,273,404 | ||||||
|
Principal Amount | Value | |||||||
| ||||||||
Investment Banking & Brokerage–(continued) |
| |||||||
GS Finance Corp., | ||||||||
Series 0003, Conv., | $ | 62,573,000 | $ | 73,867,426 | ||||
| ||||||||
0.00%, 07/19/2029(d)(e) | 62,330,000 | 71,772,995 | ||||||
| ||||||||
1.00%, 07/30/2029 | 62,338,000 | 65,592,044 | ||||||
| ||||||||
Morgan Stanley, 4.00%, 07/23/2025 | 6,870,000 | 6,753,596 | ||||||
| ||||||||
225,965,477 | ||||||||
| ||||||||
Life & Health Insurance–0.68% |
| |||||||
American Equity Investment Life Holding Co., 5.00%, 06/15/2027(c) | 8,671,000 | 8,349,520 | ||||||
| ||||||||
Athene Global Funding, 2.75%, 06/25/2024(d) | 2,890,000 | 2,860,230 | ||||||
| ||||||||
Brighthouse Financial, Inc., 3.85%, 12/22/2051 | 18,342,000 | 11,993,765 | ||||||
| ||||||||
Delaware Life Global Funding, Series 21-1, 2.66%, 06/29/2026(d) | 20,728,000 | 19,242,244 | ||||||
| ||||||||
GA Global Funding Trust, 5.50%, 01/08/2029(d) | 12,448,000 | 12,308,285 | ||||||
| ||||||||
Guardian Life Global Funding, 2.90%, 05/06/2024(d) | 7,450,000 | 7,412,556 | ||||||
| ||||||||
Nationwide Financial Services, Inc., 5.30%, 11/18/2044(d) | 4,250,000 | 3,812,766 | ||||||
| ||||||||
Pacific Life Global Funding II, 5.50%, 08/28/2026(d) | 13,319,000 | 13,412,964 | ||||||
| ||||||||
Prudential Financial, Inc., 3.91%, 12/07/2047 | 4,898,000 | 3,864,711 | ||||||
| ||||||||
83,257,041 | ||||||||
| ||||||||
Life Sciences Tools & Services–0.17% |
| |||||||
Thermo Fisher Scientific, Inc., 1.22%, 10/18/2024(c) | 21,232,000 | 20,677,100 | ||||||
| ||||||||
Managed Health Care–0.04% |
| |||||||
UnitedHealth Group, Inc., 3.50%, 08/15/2039 | 5,806,000 | 4,692,679 | ||||||
| ||||||||
Movies & Entertainment–0.45% |
| |||||||
Liberty Media Corp.-Liberty Formula One, Conv., 2.25%, 08/15/2027 | 18,954,000 | 20,597,447 | ||||||
| ||||||||
TWDC Enterprises 18 Corp., 3.00%, 02/13/2026(c) | 3,773,000 | 3,635,933 | ||||||
| ||||||||
Warnermedia Holdings, Inc., | ||||||||
3.79%, 03/15/2025(c) | 16,392,000 | 16,072,068 | ||||||
| ||||||||
5.05%, 03/15/2042(c) | 7,965,000 | 6,703,144 | ||||||
| ||||||||
5.14%, 03/15/2052 | 9,886,000 | 8,040,437 | ||||||
| ||||||||
55,049,029 | ||||||||
| ||||||||
Multi-line Insurance–0.05% |
| |||||||
Liberty Mutual Group, Inc., 3.95%, 05/15/2060(d) | 9,030,000 | 6,473,484 | ||||||
| ||||||||
Multi-Utilities–0.08% |
| |||||||
NiSource, Inc., 4.38%, 05/15/2047 | 6,015,000 | 4,995,576 | ||||||
| ||||||||
Sempra, 3.80%, 02/01/2038 | 5,871,000 | 4,822,772 | ||||||
| ||||||||
9,818,348 | ||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Equity and Income Fund |
Principal Amount | Value | |||||||
| ||||||||
Oil & Gas Exploration & Production–0.27% |
| |||||||
Cameron LNG LLC, 3.70%, 01/15/2039(d) | $ | 6,519,000 | $ | 5,366,718 | ||||
| ||||||||
ConocoPhillips Co., 4.15%, 11/15/2034 | 2,403,000 | 2,215,161 | ||||||
| ||||||||
Northern Oil and Gas, Inc., Conv., 3.63%, 04/15/2029 | 21,570,000 | 24,665,295 | ||||||
| ||||||||
32,247,174 | ||||||||
| ||||||||
Oil & Gas Refining & Marketing–0.03% |
| |||||||
Valero Energy Corp., 4.00%, 06/01/2052(c) | 5,068,000 | 3,825,661 | ||||||
| ||||||||
Oil & Gas Storage & Transportation–0.57% |
| |||||||
Enbridge, Inc. (Canada), 5.97%, 03/08/2026 | 4,267,000 | 4,265,867 | ||||||
| ||||||||
Energy Transfer L.P., | ||||||||
6.40%, 12/01/2030 | 4,861,000 | 5,104,517 | ||||||
| ||||||||
4.90%, 03/15/2035 | 3,640,000 | 3,396,564 | ||||||
| ||||||||
5.30%, 04/01/2044 | 8,165,000 | 7,408,349 | ||||||
| ||||||||
5.00%, 05/15/2050 | 7,684,000 | 6,630,134 | ||||||
| ||||||||
Enterprise Products Operating LLC, |
| |||||||
6.45%, 09/01/2040 | 555,000 | 607,188 | ||||||
| ||||||||
4.25%, 02/15/2048 | 7,354,000 | 6,157,581 | ||||||
| ||||||||
Kinder Morgan, Inc., | ||||||||
4.30%, 06/01/2025 | 9,053,000 | 8,923,287 | ||||||
| ||||||||
5.30%, 12/01/2034(c) | 4,203,000 | 4,099,921 | ||||||
| ||||||||
MPLX L.P., 4.50%, 04/15/2038 | 8,564,000 | 7,460,304 | ||||||
| ||||||||
Spectra Energy Partners L.P., 4.50%, 03/15/2045 | 5,468,000 | 4,591,534 | ||||||
| ||||||||
Texas Eastern Transmission L.P., 7.00%, 07/15/2032 | 3,835,000 | 4,254,801 | ||||||
| ||||||||
Williams Cos., Inc. (The), 5.40%, 03/02/2026 | 7,016,000 | 7,034,515 | ||||||
| ||||||||
69,934,562 | ||||||||
| ||||||||
Other Specialized REITs–0.14% |
| |||||||
EPR Properties, 4.75%, 12/15/2026(c) | 17,525,000 | 16,845,999 | ||||||
| ||||||||
Packaged Foods & Meats–0.01% |
| |||||||
Mead Johnson Nutrition Co. (United Kingdom), 4.13%, 11/15/2025 | 648,000 | 636,203 | ||||||
| ||||||||
Paper & Plastic Packaging Products & Materials–0.02% |
| |||||||
International Paper Co., 6.00%, 11/15/2041 | 2,855,000 | 2,951,058 | ||||||
| ||||||||
Passenger Airlines–0.10% |
| |||||||
American Airlines Pass-Through Trust, Series 2014-1, Class A, 3.70%, 04/01/2028 | 2,387,225 | 2,265,856 | ||||||
| ||||||||
United Airlines Pass-Through Trust, | ||||||||
Series 2012-1, Class A, 4.15%, 04/11/2024 | 2,778,420 | 2,771,662 | ||||||
| ||||||||
Series 2014-2, Class A, 3.75%, 09/03/2026 | 3,018,440 | 2,919,454 | ||||||
| ||||||||
Series 2018-1, Class AA, 3.50%, 03/01/2030 | 4,014,973 | 3,693,502 | ||||||
| ||||||||
11,650,474 | ||||||||
| ||||||||
Personal Care Products–0.06% |
| |||||||
Kenvue, Inc., 5.05%, 03/22/2053(c) | 7,142,000 | 6,883,191 | ||||||
|
Principal Amount | Value | |||||||
| ||||||||
Pharmaceuticals–0.53% |
| |||||||
Bayer US Finance II LLC (Germany), 4.38%, 12/15/2028(d) | $ | 9,800,000 | $ | 9,134,551 | ||||
| ||||||||
Bayer US Finance LLC (Germany), 6.88%, 11/21/2053(d) | 4,531,000 | 4,538,865 | ||||||
| ||||||||
Bristol-Myers Squibb Co., | ||||||||
4.13%, 06/15/2039 | 6,435,000 | 5,609,865 | ||||||
| ||||||||
6.25%, 11/15/2053(c) | 8,079,000 | 8,956,037 | ||||||
| ||||||||
Haleon US Capital LLC, 4.00%, 03/24/2052(c) | 2,954,000 | 2,361,602 | ||||||
| ||||||||
Pacira BioSciences, Inc., Conv., 0.75%, 08/01/2025 | 31,922,000 | 30,201,288 | ||||||
| ||||||||
Zoetis, Inc., 4.70%, 02/01/2043 | 4,101,000 | 3,755,251 | ||||||
| ||||||||
64,557,459 | ||||||||
| ||||||||
Property & Casualty Insurance–0.14% |
| |||||||
Allstate Corp. (The), 3.28%, 12/15/2026 | 3,260,000 | 3,109,206 | ||||||
| ||||||||
Markel Group, Inc., | ||||||||
5.00%, 03/30/2043 | 4,185,000 | 3,772,034 | ||||||
| ||||||||
5.00%, 05/20/2049 | 5,140,000 | 4,645,251 | ||||||
| ||||||||
Travelers Cos., Inc. (The), 4.60%, 08/01/2043(c) | 6,455,000 | 6,032,348 | ||||||
| ||||||||
17,558,839 | ||||||||
| ||||||||
Rail Transportation–0.23% |
| |||||||
Canadian Pacific Railway Co. (Canada), 3.00%, 12/02/2041(c) | 3,965,000 | 3,371,540 | ||||||
| ||||||||
Norfolk Southern Corp., | ||||||||
3.40%, 11/01/2049 | 4,879,000 | 3,525,492 | ||||||
| ||||||||
5.35%, 08/01/2054(c) | 5,099,000 | 5,001,969 | ||||||
| ||||||||
Union Pacific Corp., | ||||||||
3.20%, 05/20/2041(c) | 10,131,000 | 7,832,048 | ||||||
| ||||||||
4.15%, 01/15/2045 | 4,410,000 | 3,576,273 | ||||||
| ||||||||
3.84%, 03/20/2060(c) | 5,560,000 | 4,229,538 | ||||||
| ||||||||
27,536,860 | ||||||||
| ||||||||
Reinsurance–0.04% |
| |||||||
PartnerRe Finance B LLC, 3.70%, 07/02/2029(c) | 5,795,000 | 5,446,345 | ||||||
| ||||||||
Restaurants–0.06% |
| |||||||
Starbucks Corp., 3.55%, 08/15/2029(c) | 7,440,000 | 6,982,447 | ||||||
| ||||||||
Retail REITs–0.24% |
| |||||||
Brixmor Operating Partnership L.P., 5.50%, 02/15/2034(c) | 10,029,000 | 9,773,210 | ||||||
| ||||||||
Kimco Realty OP LLC, 3.20%, 04/01/2032 | 12,105,000 | 10,293,759 | ||||||
| ||||||||
Regency Centers L.P., | ||||||||
2.95%, 09/15/2029 | 7,960,000 | 7,052,072 | ||||||
| ||||||||
4.65%, 03/15/2049 | 2,970,000 | 2,524,930 | ||||||
| ||||||||
29,643,971 | ||||||||
| ||||||||
Self-Storage REITs–0.07% |
| |||||||
Extra Space Storage L.P., | ||||||||
3.50%, 07/01/2026 | 4,667,000 | 4,470,688 | ||||||
| ||||||||
5.70%, 04/01/2028 | 3,806,000 | 3,861,624 | ||||||
| ||||||||
8,332,312 | ||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Equity and Income Fund |
Principal Amount | Value | |||||||
| ||||||||
Semiconductors–0.67% |
| |||||||
Broadcom, Inc., 3.47%, 04/15/2034(d) | $ | 6,975,000 | $ | 5,893,226 | ||||
| ||||||||
Marvell Technology, Inc., 2.45%, 04/15/2028 | 12,029,000 | 10,807,154 | ||||||
| ||||||||
Microchip Technology, Inc., Conv., 0.13%, 11/15/2024 | 51,688,000 | 53,981,655 | ||||||
| ||||||||
Micron Technology, Inc., | ||||||||
4.66%, 02/15/2030(c) | 7,270,000 | 7,037,337 | ||||||
| ||||||||
3.37%, 11/01/2041 | 1,778,000 | 1,296,976 | ||||||
| ||||||||
Texas Instruments, Inc., 2.63%, 05/15/2024 | 2,275,000 | 2,261,546 | ||||||
| ||||||||
81,277,894 | ||||||||
| ||||||||
Specialty Chemicals–0.01% |
| |||||||
Sherwin-Williams Co. (The), 4.50%, 06/01/2047 | 1,665,000 | 1,444,673 | ||||||
| ||||||||
Systems Software–0.22% |
| |||||||
Microsoft Corp., 3.50%, 02/12/2035(c) | 4,259,000 | 3,871,148 | ||||||
| ||||||||
Oracle Corp., 3.60%, 04/01/2040(c) | 10,910,000 | 8,429,217 | ||||||
| ||||||||
VMware LLC, 1.00%, 08/15/2024 | 14,992,000 | 14,670,825 | ||||||
| ||||||||
26,971,190 | ||||||||
| ||||||||
Technology Distributors–0.06% |
| |||||||
Avnet, Inc., 4.63%, 04/15/2026 | 7,645,000 | 7,482,731 | ||||||
| ||||||||
Technology Hardware, Storage & Peripherals–0.03% |
| |||||||
Apple, Inc., 3.35%, 02/09/2027 | 3,495,000 | 3,363,652 | ||||||
| ||||||||
Telecom Tower REITs–0.16% |
| |||||||
American Tower Corp., 1.60%, 04/15/2026 | 8,541,000 | 7,913,007 | ||||||
| ||||||||
Crown Castle, Inc., | ||||||||
2.50%, 07/15/2031(c) | 14,073,000 | 11,536,033 | ||||||
| ||||||||
4.75%, 05/15/2047 | 470,000 | 397,599 | ||||||
| ||||||||
19,846,639 | ||||||||
| ||||||||
Tobacco–0.29% | ||||||||
Altria Group, Inc., 5.80%, 02/14/2039(c) | 12,541,000 | 12,514,699 | ||||||
| ||||||||
Philip Morris International, Inc., | ||||||||
3.25%, 11/10/2024(c) | 12,062,000 | 11,880,286 | ||||||
| ||||||||
4.88%, 11/15/2043 | 11,740,000 | 10,577,177 | ||||||
| ||||||||
34,972,162 | ||||||||
| ||||||||
Trading Companies & Distributors–0.04% |
| |||||||
Air Lease Corp., 4.25%, 09/15/2024 | 4,355,000 | 4,318,158 | ||||||
| ||||||||
Transaction & Payment Processing Services–0.58% |
| |||||||
Block, Inc., Conv., 0.13%, 03/01/2025 | 45,518,000 | 45,418,534 | ||||||
| ||||||||
Fiserv, Inc., 2.75%, 07/01/2024(c) | 1,954,000 | 1,934,689 | ||||||
| ||||||||
Global Payments, Inc., Conv., 1.50%, 03/01/2031(d) | 23,238,000 | 23,644,665 | ||||||
| ||||||||
70,997,888 | ||||||||
|
Principal Amount | Value | |||||||
| ||||||||
Wireless Telecommunication Services–0.34% |
| |||||||
America Movil S.A.B. de C.V. (Mexico), 4.38%, 07/16/2042(c) | $ | 6,610,000 | $ | 5,730,384 | ||||
| ||||||||
Rogers Communications, Inc. (Canada), | ||||||||
4.50%, 03/15/2043(c) | 6,080,000 | 5,164,547 | ||||||
| ||||||||
4.30%, 02/15/2048 | 8,020,000 | 6,421,183 | ||||||
| ||||||||
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC, 4.74%, 03/20/2025(d) | 6,342,812 | 6,301,448 | ||||||
| ||||||||
T-Mobile USA, Inc., | ||||||||
2.70%, 03/15/2032 | 10,676,000 | 8,889,021 | ||||||
| ||||||||
3.40%, 10/15/2052 | 7,422,000 | 5,159,445 | ||||||
| ||||||||
6.00%, 06/15/2054 | 3,234,000 | 3,389,408 | ||||||
| ||||||||
41,055,436 | ||||||||
| ||||||||
Total U.S. Dollar Denominated Bonds & Notes |
| 2,464,330,196 | ||||||
| ||||||||
U.S. Treasury Securities–9.62% |
| |||||||
U.S. Treasury Bills–0.02% |
| |||||||
4.74% - 5.05%, 04/18/2024(h)(i) | 2,061,000 | 2,048,023 | ||||||
| ||||||||
U.S. Treasury Bonds–0.82% |
| |||||||
4.50%, 02/15/2036 | 5,525,000 | 5,720,965 | ||||||
| ||||||||
4.50%, 02/15/2044 | 59,827,900 | 59,823,226 | ||||||
| ||||||||
4.75%, 11/15/2053 | 32,678,200 | 34,776,753 | ||||||
| ||||||||
100,320,944 | ||||||||
| ||||||||
U.S. Treasury Notes–8.78% |
| |||||||
4.25%, 01/31/2026 | 312,913,000 | 310,602,823 | ||||||
| ||||||||
4.13%, 02/15/2027 | 227,929,000 | 226,068,174 | ||||||
| ||||||||
4.00%, 01/31/2029 | 307,741,900 | 304,231,719 | ||||||
| ||||||||
4.00%, 01/31/2031 | 207,598,000 | 204,256,970 | ||||||
| ||||||||
4.00%, 02/15/2034 | 23,428,300 | 22,972,546 | ||||||
| ||||||||
1,068,132,232 | ||||||||
| ||||||||
Total U.S. Treasury Securities |
| 1,170,501,199 | ||||||
| ||||||||
Shares | ||||||||
Preferred Stocks–0.54% |
| |||||||
Asset Management & Custody Banks–0.20% |
| |||||||
AMG Capital Trust II, 5.15%, Conv. Pfd. | 483,000 | 24,386,670 | ||||||
| ||||||||
Oil & Gas Storage & Transportation–0.34% |
| |||||||
El Paso Energy Capital Trust I, 4.75%, Conv. Pfd. | 875,900 | 41,473,865 | ||||||
| ||||||||
Total Preferred Stocks (Cost $60,254,606) |
| 65,860,535 | ||||||
| ||||||||
Principal Amount | ||||||||
U.S. Government Sponsored Agency Mortgage-Backed Securities–0.13% |
| |||||||
Federal Home Loan Mortgage Corp. (FHLMC)–0.07% |
| |||||||
6.75%, 03/15/2031 | $ | 7,000,001 | 8,006,771 | |||||
| ||||||||
5.50%, 02/01/2037 | 3 | 3 | ||||||
| ||||||||
8,006,774 | ||||||||
| ||||||||
Federal National Mortgage Association (FNMA)–0.06% |
| |||||||
6.63%, 11/15/2030 | 6,315,000 | 7,131,154 | ||||||
| ||||||||
7.00%, 07/01/2032 | 3,913 | 4,018 | ||||||
| ||||||||
7,135,172 | ||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Equity and Income Fund |
Principal Amount | Value | |||||||
| ||||||||
Government National Mortgage Association (GNMA)–0.00% |
| |||||||
8.00%, 06/15/2026 to 01/20/2031 | $ | 3,423 | $ | 3,455 | ||||
| ||||||||
7.50%, 12/20/2030 | 359 | 369 | ||||||
| ||||||||
3,824 | ||||||||
| ||||||||
Total U.S. Government Sponsored Agency Mortgage-Backed Securities |
| 15,145,770 | ||||||
| ||||||||
Municipal Obligations–0.04% |
| |||||||
Georgia (State of) Municipal Electric Authority (Plant Vogtle Units 3 & 4), Series 2010 A, RB, 6.66%, 04/01/2057 | 4,721,000 | 5,326,655 | ||||||
| ||||||||
Shares | ||||||||
Money Market Funds–4.64% |
| |||||||
Invesco Government & Agency Portfolio, Institutional Class, 5.24%(j)(k) | 199,179,149 | 199,179,149 | ||||||
| ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 5.41%(j)(k) | 137,186,248 | 137,254,841 | ||||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 5.23%(j)(k) | 227,633,313 | 227,633,313 | ||||||
| ||||||||
Total Money Market Funds |
| 564,067,303 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES |
| 12,136,399,944 | ||||||
|
Investment Abbreviations:
Conv. | - Convertible | |
Pfd. | - Preferred | |
RB | - Revenue Bonds | |
REIT | - Real Estate Investment Trust |
Shares | Value | |||||||
| ||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds–1.95% |
| |||||||
Invesco Private Government Fund, 5.29%(j)(k)(l) | 66,450,959 | $ | 66,450,959 | |||||
| ||||||||
Invesco Private Prime Fund, 5.49%(j)(k)(l) | 170,788,503 | 170,873,897 | ||||||
| ||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan |
| 237,324,856 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES–101.69% |
| 12,373,724,800 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES–(1.69)% |
| (205,279,360 | ) | |||||
| ||||||||
NET ASSETS–100.00% |
| $ | 12,168,445,440 | |||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco Equity and Income Fund |
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at February 29, 2024. |
(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 29, 2024 was $476,638,805, which represented 3.92% of the Fund’s Net Assets. |
(e) | Zero coupon bond issued at a discount. |
(f) | Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put. |
(g) | Security issued at a fixed rate for a specific period of time, after which it will convert to a variable rate. |
(h) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1L. |
(i) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
(j) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 29, 2024. |
Change in | |||||||||||||||||||||||||||||||||||
Unrealized | |||||||||||||||||||||||||||||||||||
Value | Purchases | Proceeds | Appreciation | Realized | Value | ||||||||||||||||||||||||||||||
August 31, 2023 | at Cost | from Sales | (Depreciation) | Gain | February 29, 2024 | Dividend Income | |||||||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | |||||||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ | 184,477,754 | $ | 512,069,290 | $ | (497,367,895 | ) | $ | - | $ | - | $ | 199,179,149 | $ | 5,163,100 | ||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 126,706,527 | 365,763,779 | (355,262,784 | ) | 38,627 | 8,692 | 137,254,841 | 3,667,564 | |||||||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 210,831,719 | 585,222,046 | (568,420,452 | ) | - | - | 227,633,313 | 5,890,981 | |||||||||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | |||||||||||||||||||||||||||||||||||
Invesco Private Government Fund | 39,668,762 | 425,307,385 | (398,525,188 | ) | - | - | 66,450,959 | 1,221,976* | |||||||||||||||||||||||||||
Invesco Private Prime Fund | 102,005,388 | 966,548,518 | (897,735,169 | ) | (7,509 | ) | 62,669 | 170,873,897 | 3,316,437* | ||||||||||||||||||||||||||
Total | $ | 663,690,150 | $ | 2,854,911,018 | $ | (2,717,311,488 | ) | $ | 31,118 | $ | 71,361 | $ | 801,392,159 | $ | 19,260,058 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(k) | The rate shown is the 7-day SEC standardized yield as of February 29, 2024. |
(l) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
Open Futures Contracts | ||||||||||||||||||||
Short Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized (Depreciation) | |||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
U.S. Treasury 5 Year Notes | 90 | June-2024 | $ | (9,621,563 | ) | $ | (14,244 | ) | $(14,244 | ) | ||||||||||
U.S. Treasury 10 Year Notes | 207 | June-2024 | (22,860,562 | ) | (60,285 | ) | (60,285 | ) | ||||||||||||
U.S. Treasury 10 Year Ultra Notes | 311 | June-2024 | (35,507,453 | ) | (7,964 | ) | (7,964 | ) | ||||||||||||
Total Futures Contracts | $ | (82,493 | ) | $(82,493 | ) |
Open Forward Foreign Currency Contracts | ||||||||||||||
Settlement | Contract to | Unrealized Appreciation | ||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||
Currency Risk | ||||||||||||||
03/05/2024 | Bank of New York Mellon (The) | EUR | 68,214,243 | USD | 74,128,486 | $ | 399,703 | |||||||
03/05/2024 | State Street Bank & Trust Co. | CAD | 80,737,537 | USD | 60,242,824 | 748,839 | ||||||||
03/05/2024 | State Street Bank & Trust Co. | EUR | 2,174,071 | USD | 2,352,984 | 3,157 | ||||||||
03/05/2024 | State Street Bank & Trust Co. | GBP | 84,743,014 | USD | 107,820,015 | 848,404 | ||||||||
03/05/2024 | State Street Bank & Trust Co. | USD | 5,381,794 | EUR | 4,989,308 | 10,857 | ||||||||
04/05/2024 | State Street Bank & Trust Co. | CAD | 77,754,242 | USD | 57,539,048 | 217,196 | ||||||||
04/05/2024 | State Street Bank & Trust Co. | EUR | 65,399,006 | USD | 71,092,513 | 317,208 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 | Invesco Equity and Income Fund |
Open Forward Foreign Currency Contracts—(continued) | ||||||||||||||
Settlement | Contract to | Unrealized Appreciation | ||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||
04/05/2024 | State Street Bank & Trust Co. | GBP | 85,987,208 | USD | 109,148,378 | $ | 585,777 | |||||||
| ||||||||||||||
Subtotal-Appreciation | 3,131,141 | |||||||||||||
| ||||||||||||||
Currency Risk | ||||||||||||||
| ||||||||||||||
03/05/2024 | State Street Bank & Trust Co. | GBP | 1,244,194 | USD | 1,567,292 | (3,261 | ) | |||||||
| ||||||||||||||
03/05/2024 | State Street Bank & Trust Co. | USD | 59,725,171 | CAD | 80,737,537 | (231,185 | ) | |||||||
| ||||||||||||||
03/05/2024 | State Street Bank & Trust Co. | USD | 71,000,431 | EUR | 65,399,006 | (314,472 | ) | |||||||
| ||||||||||||||
03/05/2024 | State Street Bank & Trust Co. | USD | 109,126,365 | GBP | 85,987,208 | (584,201 | ) | |||||||
| ||||||||||||||
Subtotal-Depreciation | (1,133,119 | ) | ||||||||||||
| ||||||||||||||
Total Forward Foreign Currency Contracts | $ | 1,998,022 | ||||||||||||
|
Abbreviations: |
CAD -Canadian Dollar |
EUR -Euro |
GBP -British Pound Sterling |
USD -U.S. Dollar |
Portfolio Composition
By security type, based on Net Assets
as of February 29, 2024
Common Stocks & Other Equity Interests | 64.52 | % | ||
U.S. Dollar Denominated Bonds & Notes | 20.25 | |||
U.S. Treasury Securities | 9.62 | |||
Security Types Each Less Than 1% of Portfolio | 0.71 | |||
Money Market Funds Plus Other Assets Less Liabilities | 4.90 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 | Invesco Equity and Income Fund |
Statement of Assets and Liabilities
February 29, 2024
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value (Cost $9,426,035,273)* | $ | 11,572,332,641 | ||
| ||||
Investments in affiliated money market funds, at value (Cost $801,303,115) | 801,392,159 | |||
| ||||
Other investments: | ||||
Unrealized appreciation on forward foreign currency contracts outstanding | 3,131,141 | |||
| ||||
Foreign currencies, at value (Cost $1,344) | 1,331 | |||
| ||||
Receivable for: | ||||
Investments sold | 9,584,821 | |||
| ||||
Fund shares sold | 3,611,548 | |||
| ||||
Dividends | 23,280,262 | |||
| ||||
Interest | 24,438,680 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 1,001,379 | |||
| ||||
Other assets | 181,508 | |||
| ||||
Total assets | 12,438,955,470 | |||
| ||||
Liabilities: | ||||
Other investments: | ||||
Variation margin payable – futures contracts | 83,992 | |||
| ||||
Unrealized depreciation on forward foreign currency contracts outstanding | 1,133,119 | |||
| ||||
Payable for: | ||||
Investments purchased | 14,831,978 | |||
| ||||
Fund shares reacquired | 10,226,331 | |||
| ||||
Collateral upon return of securities loaned | 237,336,035 | |||
| ||||
Accrued fees to affiliates | 5,165,560 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 5,828 | |||
| ||||
Accrued other operating expenses | 628,531 | |||
| ||||
Trustee deferred compensation and retirement plans | 1,098,656 | |||
| ||||
Total liabilities | 270,510,030 | |||
| ||||
Net assets applicable to shares outstanding | $ | 12,168,445,440 | ||
| ||||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 9,875,687,358 | ||
| ||||
Distributable earnings | 2,292,758,082 | |||
| ||||
$ | 12,168,445,440 | |||
|
Net Assets: | ||||
Class A | $ | 9,992,680,433 | ||
| ||||
Class C | $ | 211,819,724 | ||
| ||||
Class R | $ | 114,771,836 | ||
| ||||
Class Y | $ | 709,231,180 | ||
| ||||
Class R5 | $ | 210,880,903 | ||
| ||||
Class R6 | $ | 929,061,364 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 963,355,808 | |||
| ||||
Class C | 20,950,018 | |||
| ||||
Class R | 10,978,364 | |||
| ||||
Class Y | 68,377,129 | |||
| ||||
Class R5 | 20,326,886 | |||
| ||||
Class R6 | 89,585,474 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 10.37 | ||
| ||||
Maximum offering price per share | $ | 10.97 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 10.11 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 10.45 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 10.37 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 10.37 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 10.37 | ||
|
* | At February 29, 2024, securities with an aggregate value of $231,150,163 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 | Invesco Equity and Income Fund |
Statement of Operations
For the six months ended February 29, 2024
(Unaudited)
Investment income: | ||||
Interest | $ | 65,225,552 | ||
| ||||
Dividends (net of foreign withholding taxes of $343,396) | 82,633,639 | |||
| ||||
Dividends from affiliated money market funds (includes net securities lending income of $144,556) | 14,866,201 | |||
| ||||
Total investment income | 162,725,392 | |||
| ||||
Expenses: | ||||
Advisory fees | 20,480,998 | |||
| ||||
Administrative services fees | 802,980 | |||
| ||||
Custodian fees | 37,862 | |||
| ||||
Distribution fees: | ||||
Class A | 11,863,655 | |||
| ||||
Class C | 1,058,916 | |||
| ||||
Class R | 264,656 | |||
| ||||
Transfer agent fees – A, C, R and Y | 7,899,220 | |||
| ||||
Transfer agent fees – R5 | 100,334 | |||
| ||||
Transfer agent fees – R6 | 133,270 | |||
| ||||
Trustees’ and officers’ fees and benefits | 68,990 | |||
| ||||
Registration and filing fees | 118,573 | |||
| ||||
Reports to shareholders | 1,461,925 | |||
| ||||
Professional services fees | 88,265 | |||
| ||||
Other | 129,580 | |||
| ||||
Total expenses | 44,509,224 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (366,865 | ) | ||
| ||||
Net expenses | 44,142,359 | |||
| ||||
Net investment income | 118,583,033 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain from: | ||||
Unaffiliated investment securities | 313,643,540 | |||
| ||||
Affiliated investment securities | 71,361 | |||
| ||||
Foreign currencies | 86,789 | |||
| ||||
Forward foreign currency contracts | 3,348,818 | |||
| ||||
Futures contracts | 280,339 | |||
| ||||
317,430,847 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | 571,606,514 | |||
| ||||
Affiliated investment securities | 31,118 | |||
| ||||
Foreign currencies | (3,609 | ) | ||
| ||||
Forward foreign currency contracts | 1,007,470 | |||
| ||||
Futures contracts | 866,225 | |||
| ||||
573,507,718 | ||||
| ||||
Net realized and unrealized gain | 890,938,565 | |||
| ||||
Net increase in net assets resulting from operations | $ | 1,009,521,598 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 | Invesco Equity and Income Fund |
Statement of Changes in Net Assets
For the six months ended February 29, 2024 and the year ended August 31, 2023
(Unaudited)
February 29, 2024 | August 31, 2023 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 118,583,033 | $ | 236,786,259 | ||||
| ||||||||
Net realized gain | 317,430,847 | 516,790,517 | ||||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 573,507,718 | (157,636,098 | ) | |||||
| ||||||||
Net increase in net assets resulting from operations | 1,009,521,598 | 595,940,678 | ||||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (561,106,417 | ) | (636,317,908 | ) | ||||
| ||||||||
Class C | (12,148,971 | ) | (15,955,994 | ) | ||||
| ||||||||
Class R | (6,070,979 | ) | (6,375,594 | ) | ||||
| ||||||||
Class Y | (41,721,224 | ) | (50,369,784 | ) | ||||
| ||||||||
Class R5 | (12,188,010 | ) | (14,865,104 | ) | ||||
| ||||||||
Class R6 | (54,030,795 | ) | (59,659,126 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (687,266,396 | ) | (783,543,510 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | 163,258,264 | 61,650,542 | ||||||
| ||||||||
Class C | (24,169,626 | ) | (39,351,727 | ) | ||||
| ||||||||
Class R | 8,361,980 | 7,760,427 | ||||||
| ||||||||
Class Y | (15,319,935 | ) | 15,704,564 | |||||
| ||||||||
Class R5 | 3,993,932 | (12,905,500 | ) | |||||
| ||||||||
Class R6 | 8,899,287 | 63,488,724 | ||||||
| ||||||||
Net increase in net assets resulting from share transactions | 145,023,902 | 96,347,030 | ||||||
| ||||||||
Net increase (decrease) in net assets | 467,279,104 | (91,255,802 | ) | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 11,701,166,336 | 11,792,422,138 | ||||||
| ||||||||
End of period | $ | 12,168,445,440 | $ | 11,701,166,336 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 | Invesco Equity and Income Fund |
(Unaudited)
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 02/29/24 | $ | 10.11 | $ | 0.10 | $ | 0.76 | $ | 0.86 | $ | (0.11 | ) | $ | (0.49 | ) | $ | (0.60 | ) | $ | 10.37 | 8.85 | % | $ | 9,992,680 | 0.79 | %(d) | 0.80 | %(d) | 2.02 | %(d) | 71 | % | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 10.27 | 0.20 | 0.33 | 0.53 | (0.22 | ) | (0.47 | ) | (0.69 | ) | 10.11 | 5.26 | 9,563,997 | 0.77 | 0.78 | 1.99 | 142 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 12.52 | 0.14 | (0.83 | ) | (0.69 | ) | (0.16 | ) | (1.40 | ) | (1.56 | ) | 10.27 | (6.36 | ) | 9,654,157 | 0.78 | 0.78 | 1.25 | 152 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 9.83 | 0.13 | 2.87 | 3.00 | (0.17 | ) | (0.14 | ) | (0.31 | ) | 12.52 | 31.02 | 10,841,867 | 0.78 | 0.78 | 1.10 | 127 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 10.12 | 0.17 | 0.18 | 0.35 | (0.19 | ) | (0.45 | ) | (0.64 | ) | 9.83 | 3.53 | 9,034,006 | 0.78 | 0.79 | 1.75 | 133 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 11.10 | 0.19 | (0.36 | ) | (0.17 | ) | (0.21 | ) | (0.60 | ) | (0.81 | ) | 10.12 | (0.96 | ) | 9,845,902 | 0.78 | 0.79 | 1.87 | 138 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 9.86 | 0.06 | 0.75 | 0.81 | (0.07 | ) | (0.49 | ) | (0.56 | ) | 10.11 | 8.53 | (e) | 211,820 | 1.52 | (d)(e) | 1.53 | (d)(e) | 1.29 | (d)(e) | 71 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 10.03 | 0.12 | 0.32 | 0.44 | (0.14 | ) | (0.47 | ) | (0.61 | ) | 9.86 | 4.43 | (e) | 230,928 | 1.50 | (e) | 1.51 | (e) | 1.26 | (e) | 142 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 12.25 | 0.06 | (0.81 | ) | (0.75 | ) | (0.07 | ) | (1.40 | ) | (1.47 | ) | 10.03 | (7.01 | ) | 275,540 | 1.53 | 1.53 | 0.50 | 152 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 9.63 | 0.04 | 2.81 | 2.85 | (0.09 | ) | (0.14 | ) | (0.23 | ) | 12.25 | 29.94 | 362,829 | 1.53 | 1.53 | 0.35 | 127 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 9.91 | 0.10 | 0.19 | 0.29 | (0.12 | ) | (0.45 | ) | (0.57 | ) | 9.63 | 2.87 | 402,761 | 1.53 | 1.54 | 1.00 | 133 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 10.89 | 0.12 | (0.36 | ) | (0.24 | ) | (0.14 | ) | (0.60 | ) | (0.74 | ) | 9.91 | (1.75 | )(e) | 576,794 | 1.49 | (e) | 1.50 | (e) | 1.16 | (e) | 138 | |||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 10.18 | 0.09 | 0.77 | 0.86 | (0.10 | ) | (0.49 | ) | (0.59 | ) | 10.45 | 8.75 | 114,772 | 1.04 | (d) | 1.05 | (d) | 1.77 | (d) | 71 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 10.35 | 0.18 | 0.31 | 0.49 | (0.19 | ) | (0.47 | ) | (0.66 | ) | 10.18 | 4.87 | 103,247 | 1.02 | 1.03 | 1.74 | 142 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 12.59 | 0.11 | (0.82 | ) | (0.71 | ) | (0.13 | ) | (1.40 | ) | (1.53 | ) | 10.35 | (6.48 | ) | 96,887 | 1.03 | 1.03 | 1.00 | 152 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 9.89 | 0.10 | 2.88 | 2.98 | (0.14 | ) | (0.14 | ) | (0.28 | ) | 12.59 | 30.61 | 114,169 | 1.03 | 1.03 | 0.85 | 127 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 10.17 | 0.15 | 0.19 | 0.34 | (0.17 | ) | (0.45 | ) | (0.62 | ) | 9.89 | 3.35 | 118,249 | 1.03 | 1.04 | 1.50 | 133 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 11.16 | 0.17 | (0.37 | ) | (0.20 | ) | (0.19 | ) | (0.60 | ) | (0.79 | ) | 10.17 | (1.30 | ) | 148,055 | 1.03 | 1.04 | 1.62 | 138 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 10.11 | 0.11 | 0.76 | 0.87 | (0.12 | ) | (0.49 | ) | (0.61 | ) | 10.37 | 8.99 | 709,231 | 0.54 | (d) | 0.55 | (d) | 2.27 | (d) | 71 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 10.27 | 0.22 | 0.33 | 0.55 | (0.24 | ) | (0.47 | ) | (0.71 | ) | 10.11 | 5.54 | 706,187 | 0.52 | 0.53 | 2.24 | 142 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 12.52 | 0.17 | (0.83 | ) | (0.66 | ) | (0.19 | ) | (1.40 | ) | (1.59 | ) | 10.27 | (6.12 | ) | 702,847 | 0.53 | 0.53 | 1.50 | 152 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 9.84 | 0.15 | 2.87 | 3.02 | (0.20 | ) | (0.14 | ) | (0.34 | ) | 12.52 | 31.22 | 778,769 | 0.53 | 0.53 | 1.35 | 127 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 10.12 | 0.19 | 0.20 | 0.39 | (0.22 | ) | (0.45 | ) | (0.67 | ) | 9.84 | 3.91 | 749,507 | 0.53 | 0.54 | 2.00 | 133 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 11.11 | 0.22 | (0.37 | ) | (0.15 | ) | (0.24 | ) | (0.60 | ) | (0.84 | ) | 10.12 | (0.81 | ) | 987,287 | 0.53 | 0.54 | 2.12 | 138 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 10.11 | 0.12 | 0.75 | 0.87 | (0.12 | ) | (0.49 | ) | (0.61 | ) | 10.37 | 9.02 | 210,881 | 0.49 | (d) | 0.50 | (d) | 2.32 | (d) | 71 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 10.28 | 0.23 | 0.32 | 0.55 | (0.25 | ) | (0.47 | ) | (0.72 | ) | 10.11 | 5.48 | 201,310 | 0.47 | 0.48 | 2.29 | 142 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 12.52 | 0.18 | (0.82 | ) | (0.64 | ) | (0.20 | ) | (1.40 | ) | (1.60 | ) | 10.28 | (5.98 | ) | 218,033 | 0.48 | 0.48 | 1.55 | 152 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 9.84 | 0.16 | 2.86 | 3.02 | (0.20 | ) | (0.14 | ) | (0.34 | ) | 12.52 | 31.28 | 242,934 | 0.46 | 0.46 | 1.42 | 127 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 10.12 | 0.20 | 0.19 | 0.39 | (0.22 | ) | (0.45 | ) | (0.67 | ) | 9.84 | 3.98 | 235,461 | 0.47 | 0.48 | 2.06 | 133 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 11.11 | 0.22 | (0.36 | ) | (0.14 | ) | (0.25 | ) | (0.60 | ) | (0.85 | ) | 10.12 | (0.75 | ) | 397,607 | 0.47 | 0.48 | 2.18 | 138 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 10.10 | 0.12 | 0.77 | 0.89 | (0.13 | ) | (0.49 | ) | (0.62 | ) | 10.37 | 9.16 | 929,061 | 0.42 | (d) | 0.43 | (d) | 2.39 | (d) | 71 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 10.27 | 0.24 | 0.31 | 0.55 | (0.25 | ) | (0.47 | ) | (0.72 | ) | 10.10 | 5.56 | 895,499 | 0.40 | 0.41 | 2.36 | 142 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 12.52 | 0.18 | (0.83 | ) | (0.65 | ) | (0.20 | ) | (1.40 | ) | (1.60 | ) | 10.27 | (6.01 | ) | 844,958 | 0.41 | 0.41 | 1.62 | 152 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 9.83 | 0.17 | 2.87 | 3.04 | (0.21 | ) | (0.14 | ) | (0.35 | ) | 12.52 | 31.50 | 913,379 | 0.39 | 0.39 | 1.49 | 127 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 10.12 | 0.21 | 0.18 | 0.39 | (0.23 | ) | (0.45 | ) | (0.68 | ) | 9.83 | 3.97 | 1,001,337 | 0.38 | 0.39 | 2.15 | 133 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 11.10 | 0.23 | (0.35 | ) | (0.12 | ) | (0.26 | ) | (0.60 | ) | (0.86 | ) | 10.12 | (0.56 | ) | 1,178,312 | 0.38 | 0.39 | 2.27 | 138 |
(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) | Annualized. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.98%, 0.98% and 0.97% for the six months ended February 29, 2024 and the years ended August 31, 2023 and August 31, 2019, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
17 | Invesco Equity and Income Fund |
February 29, 2024
(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 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 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 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. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
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. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices 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, and their value may be adjusted accordingly. 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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). 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 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.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
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 mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally 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.
18 | Invesco Equity and Income Fund |
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
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 an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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.
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, 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, 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 the ex-dividend date. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
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 based on relative net assets of Class R5 and Class R6. 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. | Securities Lending - The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “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 |
19 | Invesco Equity and Income Fund |
increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 29, 2024, the Fund paid the Adviser $2,270 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
J. | Foreign Currency Translations - Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at 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.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. 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.
K. | Forward Foreign Currency Contracts - The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
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 exchange of the two currencies on the settlement date, 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).
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 for hedging 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.
L. | 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 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 instrument or asset. 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. |
M. | 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. |
N. | 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. |
O. | Other Risks - Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability. |
20 | Invesco Equity and Income Fund |
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. 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 | 0.500% | |
Next $100 million | 0.450% | |
Next $100 million | 0.400% | |
Over $350 million | 0.350% |
For the six months ended February 29, 2024, the effective advisory fee rate incurred by the Fund was 0.35%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco 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 agreed, for an indefinite period, 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 1.50%, 2.25%, 1.75%, 1.25%, 1.25% and 1.25%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least June 30, 2025, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the six months ended February 29, 2024, the Adviser waived advisory fees of $303,605.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
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 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A shares, Class C shares and Class R shares to reimburse IDI for the sale, distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will reimburse 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. The fees are accrued daily and paid monthly. Of the Plans 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 each Fund. For the six months ended February 29, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 29, 2024, IDI advised the Fund that IDI retained $899,376 in front-end sales commissions from the sale of Class A shares and $18,904 and $3,703 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the six months ended February 29, 2024, the Fund incurred $147,974 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. 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 Adviser’s 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. |
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The following is a summary of the tiered valuation input levels, as of February 29, 2024. 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 | |||||||||||||||||||||||
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Investments in Securities | ||||||||||||||||||||||||||
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Common Stocks & Other Equity Interests | $7,613,647,956 | $ 237,520,330 | $– | $ 7,851,168,286 | ||||||||||||||||||||||
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U.S. Dollar Denominated Bonds & Notes | – | 2,464,330,196 | – | 2,464,330,196 | ||||||||||||||||||||||
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U.S. Treasury Securities | – | 1,170,501,199 | – | 1,170,501,199 | ||||||||||||||||||||||
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Preferred Stocks | 65,860,535 | – | – | 65,860,535 | ||||||||||||||||||||||
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U.S. Government Sponsored Agency Mortgage-Backed Securities | – | 15,145,770 | – | 15,145,770 | ||||||||||||||||||||||
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Municipal Obligations | – | 5,326,655 | – | 5,326,655 | ||||||||||||||||||||||
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Money Market Funds | 564,067,303 | 237,324,856 | – | 801,392,159 | ||||||||||||||||||||||
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Total Investments in Securities | 8,243,575,794 | 4,130,149,006 | – | 12,373,724,800 | ||||||||||||||||||||||
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Other Investments - Assets* | ||||||||||||||||||||||||||
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Forward Foreign Currency Contracts | – | 3,131,141 | – | 3,131,141 | ||||||||||||||||||||||
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Other Investments - Liabilities* | ||||||||||||||||||||||||||
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Futures Contracts | (82,493 | ) | – | – | (82,493 | ) | ||||||||||||||||||||
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Forward Foreign Currency Contracts | – | (1,133,119 | ) | – | (1,133,119 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||
(82,493 | ) | (1,133,119 | ) | – | (1,215,612 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||
Total Other Investments | (82,493 | ) | 1,998,022 | – | 1,915,529 | |||||||||||||||||||||
| ||||||||||||||||||||||||||
Total Investments | $ | 8,243,493,301 | $ | 4,132,147,028 | $– | $12,375,640,329 | ||||||||||||||||||||
|
* | 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 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.
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 29, 2024:
Value | ||||||||||||||||||||
Derivative Assets | Currency Risk | |||||||||||||||||||
| ||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts outstanding |
| $3,131,141 | ||||||||||||||||||
| ||||||||||||||||||||
Derivatives not subject to master netting agreements |
| – | ||||||||||||||||||
| ||||||||||||||||||||
Total Derivative Assets subject to master netting agreements |
| $3,131,141 | ||||||||||||||||||
| ||||||||||||||||||||
Value | ||||||||||||||||||||
Derivative Liabilities | Currency Risk | Interest Rate Risk | Total | |||||||||||||||||
| ||||||||||||||||||||
Unrealized depreciation on futures contracts –Exchange-Traded(a) | $ | – | $ | (82,493 | ) | $ | (82,493 | ) | ||||||||||||
| ||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts outstanding | (1,133,119 | ) | – | (1,133,119 | ) | |||||||||||||||
| ||||||||||||||||||||
Total Derivative Liabilities | (1,133,119 | ) | (82,493 | ) | (1,215,612 | ) | ||||||||||||||
| ||||||||||||||||||||
Derivatives not subject to master netting agreements | – | 82,493 | 82,493 | |||||||||||||||||
| ||||||||||||||||||||
Total Derivative Liabilities subject to master netting agreements | $ | (1,133,119 | ) | $ | – | $ | (1,133,119 | ) | ||||||||||||
|
(a) | The daily variation margin receivable (payable) at period end is recorded in the Statement of Assets and Liabilities. |
22 | Invesco Equity and Income Fund |
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 29, 2024.
Financial Derivative Assets | Financial Derivative Liabilities | Collateral (Received)/Pledged | ||||||||||||
Counterparty | Forward Foreign Currency Contracts | Forward Foreign Currency Contracts | Net Value of Derivatives | Non-Cash | Cash | Net Amount | ||||||||
Bank of New York Mellon (The) | $ 399,703 | $ – | $ | 399,703 | $– | $– | $ 399,703 | |||||||
| ||||||||||||||
State Street Bank & Trust Co. | 2,731,438 | (1,133,119) | 1,598,319 | – | – | 1,598,319 | ||||||||
| ||||||||||||||
Total | $3,131,141 | $(1,133,119) | $ | 1,998,022 | $– | $– | $1,998,022 | |||||||
|
Effect of Derivative Investments for the six months ended February 29, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain on Statement of Operations | ||||||||||||||||||||
Currency Risk | Interest Rate Risk | Total | ||||||||||||||||||
| ||||||||||||||||||||
Realized Gain: | ||||||||||||||||||||
Forward foreign currency contracts | $ | 3,348,818 | $ | - | $ | 3,348,818 | ||||||||||||||
| ||||||||||||||||||||
Futures contracts | - | 280,339 | 280,339 | |||||||||||||||||
| ||||||||||||||||||||
Change in Net Unrealized Appreciation: | ||||||||||||||||||||
Forward foreign currency contracts | 1,007,470 | - | 1,007,470 | |||||||||||||||||
| ||||||||||||||||||||
Futures contracts | - | 866,225 | 866,225 | |||||||||||||||||
| ||||||||||||||||||||
Total | $ | 4,356,288 | $ | 1,146,564 | $ | 5,502,852 | ||||||||||||||
|
The table below summarizes the average notional value of derivatives held during the period.
Forward Foreign Currency Contracts | Futures Contracts | |||||||
Average notional value | $605,297,529 | $69,543,513 |
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 29, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $63,260.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 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 fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of August 31, 2023.
23 | Invesco Equity and Income Fund |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 29, 2024 was $1,281,035,937 and $1,694,448,854, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
| ||||
Aggregate unrealized appreciation of investments | $ | 2,347,027,444 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (304,044,809 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 2,042,982,635 | ||
|
Cost of investments for tax purposes is $10,332,657,694.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Six months ended | Year ended | |||||||||||||||||||||||||||
February 29, 2024(a) | August 31, 2023 | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Sold: | ||||||||||||||||||||||||||||
Class A | 29,994,595 | $ | 300,587,452 | 69,900,060 | $ | 701,533,346 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class C | 1,129,069 | 11,041,333 | 3,088,954 | 30,306,026 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R | 1,151,672 | 11,602,709 | 2,677,098 | 27,058,482 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class Y | 4,843,138 | 48,539,232 | 17,421,501 | 174,851,176 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R5 | 601,867 | 6,032,843 | 1,871,792 | 18,765,212 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R6 | 6,131,222 | 61,502,479 | 17,191,072 | 172,216,566 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||||||||||||||
Class A | 55,072,965 | 544,589,419 | 59,396,151 | 591,080,593 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class C | 1,211,000 | 11,686,154 | 1,530,995 | 14,912,252 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R | 607,866 | 6,059,591 | 634,222 | 6,363,235 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class Y | 3,614,201 | 35,705,411 | 4,083,765 | 40,588,620 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R5 | 1,233,714 | 12,187,996 | 1,495,679 | 14,865,104 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R6 | 5,423,725 | 53,576,719 | 5,839,481 | 58,009,168 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||||||||||||||
Class A | 1,793,929 | 17,940,962 | 3,791,352 | 37,881,665 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class C | (1,838,627 | ) | (17,940,962 | ) | (3,881,540 | ) | (37,881,665 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Reacquired: | ||||||||||||||||||||||||||||
Class A | (69,890,140 | ) | (699,859,569 | ) | (126,443,474 | ) | (1,268,845,062 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class C | (2,969,359 | ) | (28,956,151 | ) | (4,786,675 | ) | (46,688,340 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R | (922,215 | ) | (9,300,320 | ) | (2,535,199 | ) | (25,661,290 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class Y | (9,957,384 | ) | (99,564,578 | ) | (20,034,981 | ) | (199,735,232 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R5 | (1,424,103 | ) | (14,226,907 | ) | (4,667,747 | ) | (46,535,816 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R6 | (10,593,793 | ) | (106,179,911 | ) | (16,656,810 | ) | (166,737,010 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Net increase in share activity | 15,213,342 | $ | 145,023,902 | 9,915,696 | $ | 96,347,030 | ||||||||||||||||||||||
|
(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. |
24 | 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, 2023 through February 29, 2024.
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 Ratio | |||||||||
Ending Account Value (02/29/24)1 | Expenses Paid During Period2 | Ending Account Value (02/29/24) | Expenses Paid During Period2 | |||||||||
Class A | $1,000.00 | $1,088.50 | $4.10 | $1,020.93 | $3.97 | 0.79% | ||||||
Class C | 1,000.00 | 1,085.30 | 7.88 | 1,017.30 | 7.62 | 1.52 | ||||||
Class R | 1,000.00 | 1,087.50 | 5.40 | 1,019.69 | 5.22 | 1.04 | ||||||
Class Y | 1,000.00 | 1,089.90 | 2.81 | 1,022.18 | 2.72 | 0.54 | ||||||
Class R5 | 1,000.00 | 1,090.20 | 2.55 | 1,022.43 | 2.46 | 0.49 | ||||||
Class R6 | 1,000.00 | 1,091.60 | 2.18 | 1,022.77 | 2.11 | 0.42 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2023 through February 29, 2024, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
25 | Invesco Equity and Income Fund |
A Special Joint Meeting (“Meeting”) of Shareholders of AIM Counselor Series Trust (Invesco Counselor Series Trust), a Delaware statutory trust (“Trust”), was held on January 16, 2024. The Meeting was held for the following purpose:
(1) Elect 14 trustees to the Board of Trustees of the Trust, each of whom will serve until his or her successor is duly elected and qualified.
The results of the voting on the above matter were as follows:
Matter | Votes For | Votes Against/Withheld | ||||||||||||
| ||||||||||||||
(1)* | Beth Ann Brown | 3,109,848,785.61 | 65,706,470.15 | |||||||||||
Carol Deckbar | 3,109,186,378.07 | 66,368,877.70 | ||||||||||||
Cynthia Hostetler | 3,108,148,647.37 | 67,406,608.40 | ||||||||||||
Dr. Eli Jones | 3,106,962,123.35 | 68,593,132.42 | ||||||||||||
Elizabeth Krentzman | 3,109,153,762.02 | 66,401,493.75 | ||||||||||||
Jeffrey H. Kupor | 3,109,094,174.85 | 66,461,080.92 | ||||||||||||
Anthony J. LaCava, Jr. | 3,107,453,603.09 | 68,101,652.67 | ||||||||||||
James Liddy | 3,108,418,832.17 | 67,136,423.60 | ||||||||||||
Dr. Prema Mathai-Davis | 3,100,922,564.57 | 74,632,691.20 | ||||||||||||
Joel W. Motley | 3,104,496,522.60 | 71,058,733.17 | ||||||||||||
Teresa M. Ressel | 3,109,248,693.76 | 66,306,562.01 | ||||||||||||
Douglas Sharp | 3,108,681,578.09 | 66,873,677.67 | ||||||||||||
Robert C. Troccoli | 3,104,038,320.81 | 71,516,934.96 | ||||||||||||
Daniel S. Vandivort | 3,106,373,978.14 | 69,181,277.62 |
* Proposal 1 required approval by a combined vote of all the portfolios of AIM Counselor Series Trust (Invesco Counselor Series Trust).
26 | Invesco Equity and Income Fund |
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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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, 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/corporate/about-us/esg. 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. This 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 number(s): 811-09913 and 333-36074 | Invesco Distributors, Inc. | VK-EQI-SAR-1 |
Semiannual Report to Shareholders | February 29, 2024 |
Invesco Floating Rate ESG Fund
Nasdaq:
A: AFRAX ∎ C: AFRCX ∎ R: AFRRX ∎ Y: AFRYX ∎ R5: AFRIX ∎ R6: AFRFX
Beginning in July 2024, amendments adopted by the Securities and Exchange Commission will substantially impact the design, content, and delivery of shareholder reports. These newly designed shareholder reports will highlight key fund information in a clear and concise format and must be mailed to each shareholder that has not elected to receive the reports electronically. Other information, including financial statements, will no longer be included in the shareholder report but will be available at invesco.com/reports, delivered upon request, and filed on a semi-annual basis on Form N-CSR.
If you would like to receive shareholder reports and other communications electronically instead of by mail, you may make that request 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. If you do not make this request or enroll in e-delivery, you will receive future shareholder reports and other communications by mail.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is 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, 8/31/23 to 2/29/24, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 4.63 | % | ||
Class C Shares | 4.37 | |||
Class R Shares | 4.50 | |||
Class Y Shares | 4.76 | |||
Class R5 Shares | 4.76 | |||
Class R6 Shares | 4.80 | |||
Bloomberg U.S. Aggregate Bond Index▼ (Broad Market Index) | 2.35 | |||
Credit Suisse Leveraged Loan Index∎ (Style-Specific Index) | 5.50 | |||
Lipper Loan Participation Funds Classification Average◆ (Peer Group) | 4.92 | |||
Source(s): ▼RIMES Technologies Corp.; ∎Bloomberg LP; ◆Lipper Inc. |
| |||
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market. The Credit Suisse Leveraged Loan Index represents tradable, senior-secured, US-dollar-denominated, noninvestment-grade loans. The Lipper Loan Participation Funds Classification Average represents an average of all of the funds in the Lipper Loan Participation Funds Classification Average. 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 |
|
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
2 | Invesco Floating Rate ESG Fund |
Average Annual Total Returns |
| |||
As of 2/29/24, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (5/1/97) | 4.03 | % | ||
10 Years | 3.43 | |||
5 Years | 3.70 | |||
1 Year | 7.57 | |||
Class C Shares | ||||
Inception (3/31/00) | 3.79 | % | ||
10 Years | 3.27 | |||
5 Years | 3.69 | |||
1 Year | 8.73 | |||
Class R Shares | ||||
Inception (4/13/06) | 3.56 | % | ||
10 Years | 3.44 | |||
5 Years | 3.99 | |||
1 Year | 10.15 | |||
Class Y Shares | ||||
Inception (10/3/08) | 5.09 | % | ||
10 Years | 3.95 | |||
5 Years | 4.48 | |||
1 Year | 10.54 | |||
Class R5 Shares | ||||
Inception (4/13/06) | 4.10 | % | ||
10 Years | 3.95 | |||
5 Years | 4.51 | |||
1 Year | 10.56 | |||
Class R6 Shares | ||||
Inception (9/24/12) | 4.29 | % | ||
10 Years | 4.02 | |||
5 Years | 4.57 | |||
1 Year | 10.80 |
For periods prior to August 21, 2020, performance is that of the Fund using its previous investment strategy, which did not apply ESG criteria.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
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 a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 | Invesco Floating Rate ESG Fund |
Consolidated Schedule of Investments
February 29, 2024
(Unaudited)
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Variable Rate Senior Loan Interests–85.74%(b)(c) | ||||||||||||||||
Aerospace & Defense–2.28% | ||||||||||||||||
ADB Safegate (ADBAS/CEP IV) (Luxembourg), Term Loan B (3 mo. EURIBOR + 4.75%) | 8.71% | 10/05/2026 | EUR | 7,531 | $ 7,803,232 | |||||||||||
Barnes Group, Inc., Term Loan (1 mo. Term SOFR + 3.00%) | 8.43% | 09/03/2030 | $ | 1,310 | 1,313,778 | |||||||||||
Brown Group Holding LLC (Signature Aviation US Holdings, Inc.) | ||||||||||||||||
Incremental Term Loan B-2 (1 mo. Term SOFR + 3.00%) | 9.08% | 07/02/2029 | 1,249 | 1,249,057 | ||||||||||||
Term Loan (1 mo. Term SOFR + 2.50%) | 8.18% | 06/07/2028 | 5,551 | 5,536,772 | ||||||||||||
Castlelake Aviation Ltd. | ||||||||||||||||
Incremental Term Loan (3 mo. Term SOFR + 2.50%) | 8.13% | 10/22/2027 | 4,189 | 4,191,892 | ||||||||||||
Term Loan (1 mo. Term SOFR + 2.75%) | 7.87% | 10/22/2026 | 9,442 | 9,450,056 | ||||||||||||
Gogo Intermediate Holdings LLC, Term Loan (1 mo. Term SOFR + 3.75%) | 9.19% | 04/30/2028 | 5,318 | 5,306,578 | ||||||||||||
Greenrock Finance, Inc. | ||||||||||||||||
First Lien Delayed Draw Term Loan (3 mo. Term SOFR + 4.35%) | 9.70% | 07/06/2029 | 2 | 1,991 | ||||||||||||
First Lien Term Loan (3 mo. Term SOFR + 4.25%) | 9.70% | 07/06/2029 | 6 | 6,007 | ||||||||||||
KKR Apple Bidco LLC, First Lien Term Loan (1 mo. Term SOFR + 2.75%) | 8.19% | 09/22/2028 | 10,062 | 10,036,069 | ||||||||||||
Peraton Corp., Second Lien Term Loan (3 mo. Term SOFR + 7.75%) | 13.18% | 02/01/2029 | 8,082 | 8,100,732 | ||||||||||||
Propulsion (BC) Finco S.a.r.l. (Spain), Term Loan (3 mo. Term SOFR + 4.00%) | 9.10% | 09/14/2029 | 5,125 | 5,128,318 | ||||||||||||
Rand Parent LLC (Atlas Air), Term Loan B (1 mo. Term SOFR + 4.25%) | 9.60% | 03/17/2030 | 2,351 | 2,351,445 | ||||||||||||
Titan Acquisition Holdings L.P., Term Loan (1 mo. Term SOFR + 4.00%)(d) | 9.32% | 06/14/2030 | 1,964 | 1,968,438 | ||||||||||||
62,444,365 | ||||||||||||||||
Air Transport–2.57% | ||||||||||||||||
AAdvantage Loyality IP Ltd. (American Airlines, Inc.), Term Loan (3 mo. Term SOFR + 4.75%) | 10.33% | 04/20/2028 | 17,538 | 17,901,735 | ||||||||||||
Air Canada (Canada), Term Loan (3 mo. Term SOFR + 3.50%) | 8.93% | 08/11/2028 | 6,005 | 6,021,449 | ||||||||||||
American Airlines, Inc. | ||||||||||||||||
Term Loan (1 mo. Term SOFR + 2.75%) | 8.60% | 02/15/2028 | 13,381 | 13,341,134 | ||||||||||||
Term Loan (3 mo. Term SOFR + 3.50%) | 8.87% | 06/04/2029 | 4,293 | 4,296,706 | ||||||||||||
Avolon TLB Borrower 1 (US) LLC, Term Loan B-6 (1 mo. Term SOFR + 2.00%) | 7.32% | 06/22/2028 | 1,211 | 1,212,329 | ||||||||||||
eTraveli Group (Sweden), Term Loan B-2 (3 mo. EURIBOR + 5.00%) | 8.93% | 11/02/2028 | EUR | 2,314 | 2,510,957 | |||||||||||
Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., Term Loan (3 mo. Term SOFR + 5.25%) | 10.77% | 06/21/2027 | 2,583 | 2,663,576 | ||||||||||||
United AirLines, Inc., Term Loan B (1 mo. Term SOFR + 2.75%) | 8.08% | 02/22/2031 | 12,864 | 12,872,293 | ||||||||||||
WestJet Airlines Ltd. (Canada) | ||||||||||||||||
Term Loan (3 mo. Term SOFR + 3.00%) | 8.43% | 12/11/2026 | 213 | 213,140 | ||||||||||||
Term Loan (1 mo. Term SOFR + 3.75%) | 9.06% | 02/14/2031 | 9,517 | 9,451,487 | ||||||||||||
70,484,806 | ||||||||||||||||
Automotive–4.15% | ||||||||||||||||
Adient PLC, Term Loan B-2 (1 mo. Term SOFR + 2.75%) | 8.08% | 01/31/2031 | 8,402 | 8,422,750 | ||||||||||||
Autokiniton US Holdings, Inc., Term Loan B (1 mo. Term SOFR + 4.00%) | 9.44% | 04/06/2028 | 6,899 | 6,915,471 | ||||||||||||
Belron Group S.A., Incremental Term Loan (3 mo. Term SOFR + 2.25%) | 7.66% | 04/18/2029 | 2,645 | 2,648,260 | ||||||||||||
Constellation Auto (CONSTE/BCA) (United Kingdom) | ||||||||||||||||
First Lien Term Loan B-2 (6 mo. SONIA + 4.75%) | 9.94% | 07/28/2028 | GBP | 759 | 888,983 | |||||||||||
Second Lien Term Loan B-1 (6 mo. SONIA + 7.50%) | 12.69% | 07/27/2029 | GBP | 4,072 | 3,753,609 | |||||||||||
DexKo Global, Inc. | ||||||||||||||||
Incremental First Lien Term Loan (1 mo. Term SOFR + 4.25%) | 9.60% | 10/04/2028 | 4,738 | 4,750,270 | ||||||||||||
Revolver Loan(d)(e) | 0.00% | 10/05/2026 | 3,617 | 3,587,744 | ||||||||||||
Driven Holdings LLC, Term Loan (1 mo. Term SOFR + 3.00%) | 8.44% | 12/17/2028 | 5,456 | 5,417,685 | ||||||||||||
Engineered Components & Systems LLC, Term Loan (1 mo. Term SOFR + 6.00%)(d) | 11.33% | 08/30/2030 | 5,469 | 5,469,262 | ||||||||||||
First Brands Group LLC | ||||||||||||||||
First Lien Term Loan (6 mo. Term SOFR + 5.00%) | 10.57% | 03/30/2027 | 10,499 | 10,536,865 | ||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 5.00%) | 10.57% | 03/30/2027 | 10,098 | 10,129,383 | ||||||||||||
Second Lien Term Loan(f) | - | 03/30/2028 | 2,732 | 2,710,244 | ||||||||||||
Highline Aftermarket Acquisition LLC, Term Loan (1 mo. Term SOFR + 4.50%) | 9.93% | 11/09/2027 | 10,936 | 10,949,718 | ||||||||||||
Les Schwab Tire Centers, Term Loan (1 mo. Term SOFR + 3.25%) | 8.69% | 11/02/2027 | 4,567 | 4,569,465 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
4 | Invesco Floating Rate ESG Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Automotive–(continued) | ||||||||||||||||
Mavis Tire Express Services Topco Corp., First Lien Term Loan (1 mo. Term SOFR + 3.75%) | 9.08% | 05/04/2028 | $ | 11,932 | $ 11,957,754 | |||||||||||
Panther BF Aggregator 2 L.P.(Power Solutions, Clarios POWSOL) (Canada), Term Loan (1 mo. Term SOFR + 3.00%) | 8.33% | 05/06/2030 | 3,493 | 3,499,744 | ||||||||||||
PowerStop LLC, Term Loan B (1 mo. Term SOFR + 4.75%) | 10.19% | 01/24/2029 | 7,977 | 7,345,152 | ||||||||||||
Project Boost Purchaser LLC, Term Loan (1 mo. Term SOFR + 3.50%) | 8.94% | 05/30/2026 | 3,063 | 3,067,646 | ||||||||||||
Wand NewCo 3, Inc., First Lien Term Loan (1 mo. Term SOFR + 3.75%) | 9.08% | 01/30/2031 | 7,122 | 7,142,059 | ||||||||||||
113,762,064 | ||||||||||||||||
Beverage & Tobacco–0.72% | ||||||||||||||||
AI Aqua Merger Sub, Inc. | ||||||||||||||||
Delayed Draw Term Loan (1 mo. Term SOFR + 4.25%) | 9.58% | 07/31/2028 | 2,970 | 2,977,001 | ||||||||||||
Delayed Draw Term Loan(e) | 0.00% | 07/31/2028 | 340 | 340,393 | ||||||||||||
Al Aqua Merger Sub, Inc., Term Loan B (1 mo. Term SOFR + 3.75%) | 9.08% | 07/31/2028 | 12,880 | 12,860,603 | ||||||||||||
Naked Juice LLC (Tropicana), Second Lien Term Loan (3 mo. Term SOFR + 6.00%) | 11.45% | 01/24/2030 | 4,430 | 3,629,485 | ||||||||||||
19,807,482 | ||||||||||||||||
Building & Development–4.25% | ||||||||||||||||
Chariot Buyer LLC, First Lien Term Loan (1 mo. Term SOFR + 3.75%)(d) | 9.08% | 11/03/2028 | 4,903 | 4,906,173 | ||||||||||||
Core & Main L.P., Term Loan B (1 mo. Term SOFR + 2.50%) | 8.06% | 07/27/2028 | 8,023 | 8,018,155 | ||||||||||||
Eleda (Platea BC Bidco), Term Loan (3 mo. EURIBOR +4.50%) | 0.00% | 02/21/2031 | EUR | 175 | 187,763 | |||||||||||
Empire Today LLC, Term Loan B (1 mo. Term SOFR + 5.00%) | 10.57% | 04/01/2028 | 15,163 | 12,231,641 | ||||||||||||
Flakt Woods (Fusilli Holdco) (France), Term Loan (3 mo. Term SOFR + 6.00%) | 9.61% | 04/12/2026 | EUR | 1,813 | 1,801,102 | |||||||||||
Icebox Holdco III, Inc. | ||||||||||||||||
First Lien Term Loan (3 mo. Term SOFR + 3.75%) | 9.11% | 12/22/2028 | 6,979 | 6,968,207 | ||||||||||||
Second Lien Term Loan (3 mo. Term SOFR + 6.75%) | 12.36% | 12/21/2029 | 1,544 | 1,489,852 | ||||||||||||
Interior Logic Group, Inc., Term Loan B (1 mo. Term SOFR + 3.50%) | 8.93% | 04/01/2028 | 6,333 | 6,008,028 | ||||||||||||
IPS Corp./CP Iris Holdco, First Lien Term Loan (1 mo. Term SOFR + 3.50%) | 9.18% | 10/02/2028 | 1,580 | 1,576,749 | ||||||||||||
Janus International Group LLC, Term Loan (1 mo. Term SOFR + 3.25%) | 8.62% | 08/03/2030 | 3,011 | 3,020,342 | ||||||||||||
LHS Borrow LLC (Leaf Home Solutions), Term Loan (1 mo. Term SOFR + 4.75%) | 10.18% | 02/16/2029 | 13,517 | 12,676,496 | ||||||||||||
Mayfair Mall LLC, Term Loan (1 mo. Term SOFR + 3.25%)(d) | 8.69% | 04/20/2024 | 2,027 | 1,859,410 | ||||||||||||
Oldcastle BuildingEnvelope, Inc., Term Loan B (3 mo. Term SOFR + 4.50%) | 9.95% | 04/29/2029 | 10,166 | 10,151,261 | ||||||||||||
Packaging Coordinators Midco, Inc., First Lien Term Loan B (3 mo. Term SOFR + 3.50%) | 9.11% | 11/30/2027 | 843 | 843,854 | ||||||||||||
Quikrete Holdings, Inc. | ||||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 2.63%) | 8.07% | 02/01/2027 | 4,722 | 4,728,287 | ||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 2.75%) | 8.19% | 03/19/2029 | 11,994 | 12,014,313 | ||||||||||||
RE/MAX LLC, Term Loan (1 mo. Term SOFR + 2.50%) | 7.94% | 07/21/2028 | 5,453 | 5,252,438 | ||||||||||||
Silk Bidco A/S (Norway), Term Loan B | - | 02/28/2027 | EUR | 8,164 | 5,502,007 | |||||||||||
SRS Distribution, Inc. | ||||||||||||||||
Term Loan (3 mo. Term SOFR + 3.50%) | 8.68% | 06/02/2028 | 5,087 | 5,087,683 | ||||||||||||
Term Loan B (1 mo. Term SOFR + 3.50%) | 8.94% | 06/02/2028 | 2,004 | 2,004,001 | ||||||||||||
Standard Industries, Inc., Term Loan B (1 mo. Term SOFR + 2.25%) | 7.68% | 09/22/2028 | 6,611 | 6,616,412 | ||||||||||||
Summit Materials LLC, Term Loan B-2 (3 mo. Term SOFR + 2.50%) | 7.83% | 01/12/2029 | 2,749 | 2,760,820 | ||||||||||||
Xella (Luxembourg), Term Loan B-4 (3 mo. EURIBOR + 4.18%) | 8.10% | 04/12/2028 | EUR | 723 | 737,193 | |||||||||||
116,442,187 | ||||||||||||||||
Business Equipment & Services–10.56% | ||||||||||||||||
Adevinta ASA (Norway), Term Loan B-2 (3 mo. Term SOFR + 2.75%) | 8.36% | 06/26/2028 | 2,133 | 2,142,444 | ||||||||||||
Allied Universal Holdco LLC (USAGM Holdco LLC/UNSEAM), Term Loan (1 mo. Term SOFR + 4.75%) | 10.08% | 05/12/2028 | 9,783 | 9,803,295 | ||||||||||||
Boost Newco Borrower LLC (WorldPay), Term Loan (3 mo. Term SOFR + 3.00%) | 8.33% | 01/31/2031 | 9,509 | 9,556,936 | ||||||||||||
Camelot U.S. Acquisition 1 Co. (United Kingdom) | ||||||||||||||||
Term Loan (1 mo. Term SOFR +3.00%) | 8.08% | 10/30/2026 | 4,446 | 4,442,868 | ||||||||||||
Term Loan (1 mo. Term SOFR +2.75%) | 8.08% | 10/30/2026 | 6,001 | 5,993,228 | ||||||||||||
Checkout Holding Corp., Term Loan (3 mo. Term SOFR +9.50%) | 14.80% | 05/10/2027 | 382 | 200,400 | ||||||||||||
Cimpress USA, Inc., Term Loan B (1 mo. Term SOFR + 3.50%) | 8.94% | 05/17/2028 | 11,220 | 11,210,596 | ||||||||||||
Cloud Software Group, Inc., Term Loan B (1 mo. Term SOFR + 4.50%) | 9.99% | 03/30/2029 | 7,041 | 6,990,196 | ||||||||||||
Constant Contact, Inc. | ||||||||||||||||
Second Lien Term Loan (3 mo. Term SOFR + 7.50%) | 12.83% | 02/12/2029 | 1,329 | 1,209,100 | ||||||||||||
Term Loan (1 mo. Term SOFR + 4.00%) | 9.59% | 02/10/2028 | 7,805 | 7,597,466 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
5 | Invesco Floating Rate ESG Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Business Equipment & Services–(continued) | ||||||||||||||||
Corporation Service Co., Term Loan B (1 mo. Term SOFR + 3.25%) | 8.08% | 11/02/2029 | $ | 9,718 | $ 9,733,566 | |||||||||||
CRCI Longhorn Holdings, Inc. | ||||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 3.50%) | 8.92% | 08/08/2025 | 1,713 | 1,712,377 | ||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 7.25%) | 12.68% | 08/08/2026 | 234 | 230,011 | ||||||||||||
Dakota Holding Corp. | ||||||||||||||||
First Lien Term Loan (3 mo. Term SOFR + 3.75%) | 9.10% | 04/09/2027 | 12,274 | 12,145,678 | ||||||||||||
Second Lien Term Loan (3 mo. Term SOFR + 6.75%) | 12.36% | 04/07/2028 | 3,245 | 3,230,663 | ||||||||||||
Dun & Bradstreet Corp. (The), Incremental Term Loan B-2 (1 mo. Term SOFR + 2.75%) | 8.07% | 01/18/2029 | 17,584 | 17,563,816 | ||||||||||||
Garda World Security Corp. (Canada), Term Loan (1 mo. Term SOFR + 4.25%) | 9.62% | 02/01/2029 | 13,224 | 13,242,792 | ||||||||||||
GI Revelation Acquisition LLC, First Lien Term Loan (1 mo. Term SOFR + 4.00%) | 9.44% | 05/12/2028 | 13,786 | 13,738,026 | ||||||||||||
I-Logic Tech Bidco Ltd. (United Kingdom), Term Loan (3 mo. Term SOFR + 4.00%) | 9.50% | 02/16/2028 | 7,677 | 7,631,039 | ||||||||||||
ION Trading Technologies S.a.r.l. (Luxembourg) | ||||||||||||||||
Term Loan (3 mo. EURIBOR + 4.25%) | 8.18% | 04/01/2028 | EUR | 2,054 | 2,151,923 | |||||||||||
Term Loan (3 mo. Term SOFR + 4.75%) | 10.20% | 04/01/2028 | 8,604 | 8,564,402 | ||||||||||||
Iron Mountain Information Management LLC, Incremental Term Loan B (1 mo. Term SOFR + 2.25%) | 7.58% | 01/31/2031 | 4,047 | 4,029,153 | ||||||||||||
KBR, Inc., Incremental Term Loan B (1 mo. Term SOFR + 2.25%) | 7.58% | 01/17/2031 | 2,676 | 2,685,063 | ||||||||||||
KronosNet CX Bidco (Comspa Konecta) (Spain), Term Loan B (3 mo. EURIBOR +5.75%) | 9.70% | 09/30/2029 | EUR | 12,219 | 12,435,131 | |||||||||||
Learning Care Group (US) No. 2, Inc., Term Loan (1 mo. Term SOFR + 4.75%) | 10.09% | 08/11/2028 | 3,280 | 3,285,138 | ||||||||||||
Monitronics International, Inc., Term Loan A (3 mo. Term SOFR + 7.50%) (Acquired 06/30/2023-02/16/2024; Cost $26,880,200)(g) | 13.07% | 06/30/2028 | 26,851 | 27,035,711 | ||||||||||||
OCM System One Buyer CTB LLC, Term Loan (3 mo. Term SOFR + 4.00%) | 9.50% | 03/02/2028 | 1,850 | 1,850,475 | ||||||||||||
Orchid Merger Sub II LLC, Term Loan (1 mo. Term SOFR + 4.75%) (Acquired 11/12/2021-02/03/2022; Cost $8,683,099)(g) | 10.25% | 07/27/2027 | 9,001 | 5,870,111 | ||||||||||||
Outfront Media Capital LLC, Term Loan (1 mo. Term SOFR + 1.75%) | 7.08% | 11/18/2026 | 4,003 | 3,992,808 | ||||||||||||
Prime Security Services Borrower LLC, First Lien Term Loan B-1 (1 mo. Term SOFR + 2.50%) | 7.83% | 10/13/2030 | 5,667 | 5,672,001 | ||||||||||||
Prometric Holdings, Inc., Term Loan (3 mo. Term SOFR + 3.00%) | 10.69% | 01/31/2028 | 2,892 | 2,897,481 | ||||||||||||
Red Ventures LLC (New Imagitas, Inc.), First Lien Term Loan B-4 (1 mo. Term SOFR + 3.00%) | 8.33% | 03/03/2030 | 4,475 | 4,457,920 | ||||||||||||
Ryan LLC (Ryan Tax) | ||||||||||||||||
Delayed Draw Term Loan(e) | 0.00% | 11/14/2030 | 177 | 177,710 | ||||||||||||
Term Loan (1 mo. Term SOFR + 4.50%) | 9.83% | 11/14/2030 | 1,683 | 1,688,248 | ||||||||||||
Sitel Worldwide Corp., Term Loan (1 mo. Term SOFR + 3.75%) | 9.19% | 08/28/2028 | 10,520 | 10,128,704 | ||||||||||||
Skillsoft Corp., Term Loan (1 mo. Term SOFR + 4.75%) | 10.68% | 07/14/2028 | 2,017 | 1,890,154 | ||||||||||||
Spin Holdco, Inc., Term Loan (3 mo. Term SOFR + 4.00%) | 9.62% | 03/04/2028 | 29,408 | 26,829,277 | ||||||||||||
Tempo Acquisition LLC, Term Loan (1 mo. Term SOFR + 2.75%) | 8.08% | 08/31/2028 | 5,060 | 5,073,425 | ||||||||||||
Trans Union LLC, Incremental Term Loan B-6 (1 mo. Term SOFR + 2.25%) | 7.33% | 12/01/2028 | 4,533 | 4,535,384 | ||||||||||||
UnitedLex Corp., Term Loan (1 mo. USD LIBOR + 4.75%)(d) | 11.22% | 03/20/2027 | 1,450 | 1,196,541 | ||||||||||||
Verra Mobility Corporation (aka American Traffic Solutions), First Lien Term Loan (1 mo. Term SOFR + 3.25%) | 8.08% | 03/24/2028 | 10,386 | 10,415,505 | ||||||||||||
Vestis Corp., Term Loan B(f) | - | 02/18/2031 | 3,375 | 3,385,546 | ||||||||||||
WEX Inc., Term Loan (1 mo. Term SOFR + 2.00%) | 7.33% | 03/31/2028 | 595 | 594,431 | ||||||||||||
289,216,739 | ||||||||||||||||
Cable & Satellite Television–3.51% | ||||||||||||||||
Altice Financing S.A. (Luxembourg), Term Loan (3 mo. Term SOFR + 2.75%) | 8.33% | 07/15/2025 | 1,366 | 1,359,461 | ||||||||||||
Altice Financing S.A. (Alt-Intl) (Luxembourg), Term Loan (3 mo. EURIBOR + 5.00%) | 8.94% | 10/31/2027 | EUR | 934 | 995,397 | |||||||||||
Atlantic Broadband Finance LLC | ||||||||||||||||
Term Loan (1 mo. Term SOFR + 2.50%) | 7.94% | 09/01/2028 | 7,089 | 6,831,664 | ||||||||||||
Term Loan B-1 (1 mo. Term SOFR + 3.25%) | 8.58% | 09/18/2030 | 4,155 | 4,007,632 | ||||||||||||
CSC Holdings LLC | ||||||||||||||||
Term Loan (1 mo. Term SOFR + 2.50%) | 7.93% | 04/15/2027 | 4,802 | 4,510,109 | ||||||||||||
Term Loan B (1 mo. Term SOFR + 4.50%) | 9.82% | 01/15/2028 | 1,101 | 1,073,606 | ||||||||||||
Numericable-SFR S.A. (France) | ||||||||||||||||
Incremental Term Loan B-13 (1 mo. Term SOFR + 4.00%) | 9.57% | 08/14/2026 | 10,616 | 10,412,793 | ||||||||||||
Term Loan B-11 (1 mo. Term SOFR + 2.75%) | 8.32% | 07/31/2025 | 4,324 | 4,285,097 | ||||||||||||
Term Loan B-12 (1 mo. Term SOFR + 3.69%) | 9.26% | 01/31/2026 | 4,852 | 4,778,792 | ||||||||||||
SFR-Numericable (YPSO, Alt-Fr) (France), Term Loan B-14 (3 mo. EURIBOR + 5.50%) | 9.44% | 08/15/2028 | EUR | 3,764 | 3,736,534 | |||||||||||
Telenet - LG, Term Loan AR (1 mo. Term SOFR + 2.00%) | 7.43% | 04/30/2028 | 5,590 | 5,457,649 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
6 | Invesco Floating Rate ESG Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Cable & Satellite Television–(continued) | ||||||||||||||||
UPC - LG | ||||||||||||||||
Term Loan AT (1 mo. Term SOFR + 2.25%) | 7.68% | 04/30/2028 | $ | 116 | $ 115,141 | |||||||||||
Term Loan AX (1 mo. Term SOFR + 2.93%) | 8.43% | 01/31/2029 | 14,163 | 14,126,987 | ||||||||||||
Virgin Media 02 - LG (United Kingdom) | ||||||||||||||||
Term Loan N (1 mo. Term SOFR + 2.50%) | 7.93% | 01/31/2028 | 7,875 | 7,813,144 | ||||||||||||
Term Loan Q (1 mo. Term SOFR + 3.25%) | 8.68% | 01/31/2029 | 20,909 | 20,868,057 | ||||||||||||
Term Loan Y (1 mo. Term SOFR + 3.25%) | 8.79% | 03/31/2031 | 5,726 | 5,697,848 | ||||||||||||
96,069,911 | ||||||||||||||||
Chemicals & Plastics–9.54% | ||||||||||||||||
A-Gas Finco, Inc., Term Loan (1 mo. Term SOFR + 5.25%) | 10.62% | 12/14/2029 | 5,796 | 5,658,229 | ||||||||||||
AkzoNoble Chemicals | ||||||||||||||||
Incremental Term Loan (1 mo. Term SOFR + 4.00%) | 9.42% | 03/03/2028 | 4,367 | 4,373,823 | ||||||||||||
Term Loan (1 mo. Term SOFR + 4.00%) | 9.42% | 04/03/2028 | 15,549 | 15,578,084 | ||||||||||||
Aruba Investments, Inc., Second Lien Term Loan (1 mo. Term SOFR + 7.75%) | 13.18% | 11/24/2028 | 1,711 | 1,636,874 | ||||||||||||
Ascend Performance Materials Operations LLC, Term Loan (6 mo. Term SOFR + 4.75%) | 10.32% | 08/27/2026 | 13,800 | 13,440,157 | ||||||||||||
Axalta Coating Systems U.S. Holdings, Inc., Term Loan B-5 (1 mo. Term SOFR + 2.50%) | 7.85% | 12/20/2029 | 3,623 | 3,630,279 | ||||||||||||
BES (Discovery Purchaser Corp.) | ||||||||||||||||
First Lien Term Loan (3 mo. Term SOFR + 4.38%) | 9.71% | 10/04/2029 | 8,102 | 8,073,842 | ||||||||||||
Second Lien Term Loan (1 mo. Term SOFR + 7.00%) | 12.33% | 10/04/2030 | 2,903 | 2,763,654 | ||||||||||||
Caldic (Pearls BidCo) (Netherlands), Term Loan B(f) | – | 02/26/2029 | 4,691 | 4,661,257 | ||||||||||||
Charter NEX US, Inc., Term Loan B (1 mo. Term SOFR + 3.50%) | 8.83% | 12/01/2027 | 9,307 | 9,313,532 | ||||||||||||
Composite Resins Holding B.V. (AOC), Term Loan (1 mo. Term SOFR + 4.25%) | 9.68% | 10/15/2028 | 6,644 | 6,657,248 | ||||||||||||
Cyanco Intermediate 2 Corp., Term Loan (1 mo. Term SOFR + 4.75%) | 10.08% | 07/10/2028 | 2,861 | 2,868,063 | ||||||||||||
Derby Buyer LLC (Delrin), Term Loan (1 mo. Term SOFR + 4.25%) | 9.58% | 11/01/2030 | 4,038 | 4,050,361 | ||||||||||||
Eastman Tire Additives (River Buyer, Inc.), First Lien Term Loan (1 mo. Term SOFR + 5.25%) | 10.86% | 11/01/2028 | 11,358 | 11,121,091 | ||||||||||||
Flint Group (ColourOz Inv) (Germany) | ||||||||||||||||
PIK Term Loan, 5.68% PIK Rate, 0.00% Cash Rate(h) | 5.68% | 12/31/2027 | 41 | 5,236 | ||||||||||||
Term Loan (1 mo. Term SOFR + 8.26%) | 13.58% | 06/30/2026 | 6 | 6,202 | ||||||||||||
Fusion (Fusion UK Holding Ltd. & US HoldCo VAD, Inc.), Term Loan (3 mo. Term SOFR + 3.75%) | 9.50% | 05/29/2029 | 1,707 | 1,705,266 | ||||||||||||
ICP Group Holdings LLC, First Lien Term Loan (1 mo. Term SOFR + 3.75%) | 9.36% | 12/29/2027 | 5,589 | 4,653,851 | ||||||||||||
INEOS Enterprises Holdings US Finco LLC (United Kingdom), Term Loan B (1 mo. Term SOFR + 3.75%) | 9.19% | 07/08/2030 | 6,728 | 6,739,118 | ||||||||||||
Ineos Quattro Holdings UK Ltd. (United Kingdom) | ||||||||||||||||
Term Loan B (1 mo. Term SOFR + 4.25%) | 9.68% | 04/03/2029 | 7,122 | 7,032,782 | ||||||||||||
Term Loan B (1 mo. Term SOFR + 3.75%) | 9.18% | 03/14/2030 | 2,364 | 2,344,726 | ||||||||||||
Ineos US Finance LLC | ||||||||||||||||
Term Loan (1 mo. Term SOFR + 3.75%) | 9.18% | 11/08/2027 | 7,159 | 7,165,959 | ||||||||||||
Term Loan (1 mo. Term SOFR + 2.50%) | 7.93% | 11/08/2028 | 4,406 | 4,329,106 | ||||||||||||
Term Loan (1 mo. Term SOFR + 3.50%) | 8.93% | 02/18/2030 | 8,326 | 8,269,459 | ||||||||||||
Term Loan (1 mo. Term SOFR + 3.75%) | 9.08% | 02/15/2031 | 4,950 | 4,923,837 | ||||||||||||
Lummus Technology Holdings V LLC (Illuminate Buyer LLC), Term Loan B (1 mo. Term SOFR + 3.50%) | 8.82% | 12/31/2029 | 2,809 | 2,812,662 | ||||||||||||
Momentive Performance Materials USA, Inc., Term loan B (1 mo. Term SOFR + 4.50%) | 9.83% | 03/22/2028 | 6,728 | 6,606,145 | ||||||||||||
Oxea Corp., Term Loan B-2 (1 mo. Term SOFR + 3.25%) (Acquired 01/11/2024-02/22/2024; Cost $5,200,197)(g) | 8.93% | 10/14/2024 | 5,289 | 5,157,179 | ||||||||||||
Proampac PG Borrower LLC, Term Loan B (1 mo. Term SOFR + 4.50%) | 9.80% | 09/15/2028 | 9,726 | 9,752,404 | ||||||||||||
Quantix, Incremental Term Loan (3 mo. Term SOFR + 6.50%)(d) | 11.98% | 05/03/2025 | 14,666 | 14,240,352 | ||||||||||||
Trinseo Materials Operating S.C.A. | ||||||||||||||||
Incremental Term Loan (1 mo. Term SOFR + 2.50%) | 8.10% | 05/03/2028 | 9,557 | 7,189,406 | ||||||||||||
Term Loan A(d) | - | 05/03/2028 | 1,136 | 1,178,254 | ||||||||||||
Term Loan B | - | 05/03/2028 | 8,358 | 8,713,118 | ||||||||||||
Tronox Finance LLC | ||||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 3.25%) | 8.60% | 04/04/2029 | 10,740 | 10,740,244 | ||||||||||||
Incremental Term Loan (1 mo. Term SOFR + 3.50%) | 8.85% | 08/16/2028 | 2,849 | 2,852,954 | ||||||||||||
Univar, Inc., Term Loan B (1 mo. Term SOFR + 4.50%) | 9.82% | 08/01/2030 | 10,463 | 10,493,949 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
7 | Invesco Floating Rate ESG Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Chemicals & Plastics–(continued) | ||||||||||||||||
V Global Holdings LLC (aka Vertellus) | ||||||||||||||||
Revolver Loan (3 mo. Term SOFR + 5.75%)(d) | 11.17% | 12/22/2025 | $ | 1,587 | $ 1,520,673 | |||||||||||
Revolver Loan(d)(e) | 0.00% | 12/22/2025 | 1,231 | 1,179,587 | ||||||||||||
Term Loan (6 mo. Term SOFR + 5.75%)(d) | 11.03% | 12/22/2027 | 22,766 | 21,810,003 | ||||||||||||
W.R. Grace & Co., Term Loan (3 mo. Term SOFR + 3.75%) | 9.36% | 09/22/2028 | 16,217 | 16,233,075 | ||||||||||||
261,482,041 | ||||||||||||||||
Clothing & Textiles–0.58% | ||||||||||||||||
ABG Intermediate Holdings 2 LLC, First Lien Term Loan B-1 (1 mo. Term SOFR + 3.50%) | 8.93% | 12/21/2028 | 11,995 | 12,039,217 | ||||||||||||
BK LC Lux SPV S.a.r.l. (Birkenstock), Term Loan B (1 mo. Term SOFR + 3.25%) | 8.83% | 04/28/2028 | 3,823 | 3,832,767 | ||||||||||||
15,871,984 | ||||||||||||||||
Conglomerates–0.15% | ||||||||||||||||
APi Group DE, Inc., Incremental Term Loan (1 mo. Term SOFR + 2.50%) | 7.94% | 01/03/2029 | 4,223 | 4,227,287 | ||||||||||||
Containers & Glass Products–2.56% | ||||||||||||||||
Berlin Packaging LLC, Term Loan B-5 (3 mo. Term SOFR + 3.75%) | 9.19% | 03/11/2028 | 6,800 | 6,790,633 | ||||||||||||
Brook & Whittle Holding Corp., First Lien Term Loan (3 mo. Term SOFR + 4.00%) | 9.49% | 12/14/2028 | 7,861 | 7,347,926 | ||||||||||||
Duran Group (Blitz/DWK) (Germany), Term loan C-2 (1 mo. Term SOFR + 5.50%) | 10.83% | 05/31/2026 | 7,291 | 7,054,330 | ||||||||||||
Keter Group B.V. (Netherlands) | ||||||||||||||||
PIK Term Loan B-3-A, 2.00% PIK Rate, 8.16% Cash Rate(h) | 2.00% | 03/31/2025 | EUR | 4,818 | 4,840,610 | |||||||||||
Term Loan (3 mo. EURIBOR +8.00%)(d) | 11.90% | 12/31/2024 | EUR | 776 | 846,727 | |||||||||||
Term Loan B-1 (3 mo. EURIBOR + 4.25%) | 8.16% | 03/31/2025 | EUR | 14,052 | 14,117,230 | |||||||||||
LABL, Inc. (Multi-Color), Term Loan (1 mo. Term SOFR + 5.00%) | 10.43% | 10/29/2028 | 3,310 | 3,215,247 | ||||||||||||
Libbey Glass, Inc., Term Loan (3 mo. Term SOFR + 6.50%) | 11.97% | 11/22/2027 | 13,298 | 12,655,274 | ||||||||||||
Logoplaste (Mar Bidco S.a.r.l.) (Portugal), Term Loan B (1 mo. Term SOFR + 4.30%) | 9.51% | 07/07/2028 | 6,416 | 6,063,431 | ||||||||||||
Mold-Rite Plastics LLC (Valcour Packaging LLC), First Lien Term Loan (1 mo. USD LIBOR + 3.75%) | 9.19% | 10/04/2028 | 6,598 | 5,426,512 | ||||||||||||
Pegasus BidCo B.V. (Netherlands), Term Loan (1 mo. Term SOFR + 3.75%) | 9.06% | 07/12/2029 | 1,812 | 1,818,833 | ||||||||||||
70,176,753 | ||||||||||||||||
Cosmetics & Toiletries–0.21% | ||||||||||||||||
Rodenstock (Germany), Term Loan B (3 mo. EURIBOR + 5.00%) | 8.91% | 06/29/2028 | EUR | 5,399 | 5,719,831 | |||||||||||
Drugs–0.04% | ||||||||||||||||
Grifols Worldwide Operations USA, Inc., Term Loan B (3 mo. Term SOFR + 2.00%) | 7.43% | 11/15/2027 | 193 | 189,433 | ||||||||||||
Perrigo Company PLC, Term Loan B (1 mo. Term SOFR + 2.50%) | 7.68% | 04/20/2029 | 894 | 892,025 | ||||||||||||
1,081,458 | ||||||||||||||||
Ecological Services & Equipment–0.84% | ||||||||||||||||
Anticimex Global AB (Sweden) | ||||||||||||||||
Term Loan B-1 (3 mo. Term SOFR + 3.50%) | 8.45% | 11/16/2028 | 663 | 662,534 | ||||||||||||
Term Loan B-2 (3 mo. Term SOFR + 4.50%) | 9.84% | 11/16/2028 | 1,809 | 1,811,290 | ||||||||||||
Term Loan B-4 (3 mo. Term SOFR + 4.00%) | 8.95% | 11/16/2028 | 1,137 | 1,137,381 | ||||||||||||
EnergySolutions LLC, Term Loan (1 mo. Term SOFR + 4.00%) | 9.31% | 09/18/2030 | 6,725 | 6,752,625 | ||||||||||||
GFL Environmental, Inc. (Canada), Term Loan A (1 mo. Term SOFR + 2.50%) | 7.82% | 05/31/2027 | 686 | 687,983 | ||||||||||||
Groundworks LLC | ||||||||||||||||
Delayed Draw Term Loan(d)(e) | 0.00% | 03/14/2030 | 194 | 193,838 | ||||||||||||
Delayed Draw Term Loan (3 mo. Term SOFR +6.50%)(d) | 11.82% | 03/14/2030 | 259 | 258,168 | ||||||||||||
Revolver Loan(d)(e) | 0.00% | 03/14/2029 | 339 | 338,582 | ||||||||||||
Term Loan B (1 mo. Term SOFR +6.50%)(d)(f) | 11.84% | 03/14/2030 | 6,386 | 6,373,029 | ||||||||||||
OGF (VESCAP/Obol France 3/PHM) (France), Term Loan B-2 (6 mo. EURIBOR + 4.75%) | 8.86% | 12/31/2025 | EUR | 848 | 878,984 | |||||||||||
Patriot Container Corp., First Lien Term Loan (1 mo. Term SOFR + 3.75%) | 9.18% | 03/20/2025 | 3,908 | 3,800,816 | ||||||||||||
22,895,230 | ||||||||||||||||
Electronics & Electrical–8.06% | ||||||||||||||||
Applied Systems, Inc., First Lien Term Loan (f) | - | 02/24/2031 | 475 | 477,367 | ||||||||||||
AppLovin Corp., Term Loan (1 mo. Term SOFR + 3.00%) | 8.43% | 10/25/2028 | 5,039 | 5,050,527 | ||||||||||||
Boxer Parent Co., Inc., Term Loan (1 mo. Term SOFR + 4.25%) | 9.58% | 12/29/2028 | 1,316 | 1,322,024 | ||||||||||||
ConnectWise LLC, Term Loan (1 mo. Term SOFR + 3.50%) | 9.11% | 10/01/2028 | 4 | 4,322 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
8 | Invesco Floating Rate ESG Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Electronics & Electrical–(continued) | ||||||||||||||||
Diebold Nixdorf, Inc., Term Loan (3 mo. Term SOFR + 7.50%) | 12.82% | 08/11/2028 | $ | 3,466 | $ 3,614,942 | |||||||||||
E2Open LLC, Term Loan (1 mo. Term SOFR + 3.50%) | 8.94% | 02/04/2028 | 8,757 | 8,763,691 | ||||||||||||
Energizer Holdings, Inc., Term Loan (1 mo. Term SOFR + 2.25%) | 7.68% | 12/22/2027 | 3,605 | 3,605,821 | ||||||||||||
Entegris, Inc., Term Loan B (1 mo. Term SOFR + 2.75%) | 7.85% | 07/06/2029 | 2,999 | 3,007,900 | ||||||||||||
EverCommerce, Term Loan B (1 mo. Term SOFR + 3.25%) | 8.44% | 07/01/2028 | 4,139 | 4,145,205 | ||||||||||||
Go Daddy Operating Co. LLC, Term Loan B-6 (1 mo. Term SOFR + 2.00%) | 7.33% | 11/09/2029 | 535 | 534,911 | ||||||||||||
GoTo Group, Inc. (LogMeIn) | ||||||||||||||||
Second Lien Term Loan (1 mo. Term SOFR + 4.75%)(d) | 10.17% | 08/31/2027 | 12,453 | 8,748,548 | ||||||||||||
Term Loan (1 mo. Term SOFR + 4.75%)(d) | 10.17% | 08/31/2027 | 14,644 | 14,057,767 | ||||||||||||
Helios Software Holdings, Inc. (ION Corporate Solutions Finance S.a r.l.), Term Loan (3 mo. Term SOFR + 3.75%) | 9.25% | 03/11/2028 | 2,000 | 1,983,000 | ||||||||||||
Idemia (Oberthur Tech/Morpho/OBETEC), Term Loan B (3 mo. Term SOFR + 4.75%)(f) | 10.10% | 09/30/2028 | 3,501 | 3,509,787 | ||||||||||||
Idemia Group S.A.S. (Oberthur Tech / Morpho / OBETEC), Term Loan B-5 (1 mo. Term SOFR + 4.25%) | 10.10% | 09/30/2028 | 1,885 | 1,889,397 | ||||||||||||
Infinite Electronics | ||||||||||||||||
First Lien Term Loan (3 mo. Term SOFR + 3.25%) | 9.32% | 03/02/2028 | 9,440 | 9,278,675 | ||||||||||||
Second Lien Term Loan (3 mo. Term SOFR + 7.00%) | 12.57% | 03/02/2029 | 750 | 634,580 | ||||||||||||
Informatica Corp., Term Loan (1 mo. Term SOFR + 2.75%) | 8.19% | 10/27/2028 | 10,795 | 10,818,366 | ||||||||||||
ION Corp (Helios Software), Term Loan (1 mo. Term SOFR + 3.75%) | 9.07% | 07/18/2030 | 2,623 | 2,604,486 | ||||||||||||
Learning Pool (Brook Bidco Ltd.) (United Kingdom) | ||||||||||||||||
Term Loan (3 mo. SONIA + 6.87%)(d) | 12.06% | 08/17/2028 | GBP | 1,754 | 2,168,163 | |||||||||||
Term Loan (3 mo. SONIA + 6.87%)(d) | 12.06% | 08/17/2028 | GBP | 443 | 547,832 | |||||||||||
Term Loan 1 (3 mo. Term SOFR + 7.01%)(d) | 12.32% | 08/17/2028 | 5,524 | 5,336,408 | ||||||||||||
Term Loan 2 (3 mo. Term SOFR + 7.01%)(d) | 12.32% | 08/17/2028 | 2,104 | 2,032,851 | ||||||||||||
Mavenir Systems, Inc., Term Loan B (3 mo. Term SOFR + 4.75%) | 10.34% | 08/13/2028 | 11,821 | 8,107,480 | ||||||||||||
Mirion Technologies, Inc., Term Loan (1 mo. Term SOFR + 2.75%) | 8.36% | 10/20/2028 | 5,642 | 5,649,333 | ||||||||||||
Natel Engineering Co., Inc., Term Loan (1 mo. Term SOFR + 6.25%) | 11.69% | 04/30/2026 | 14,860 | 13,151,392 | ||||||||||||
Native Instruments (Music Creation Group GMBH/APTUS) (Germany), Term Loan B (3 mo. EURIBOR + 7.00%)(d) | 10.96% | 03/03/2028 | EUR | 3,929 | 4,030,063 | |||||||||||
Open Text Corp. (Canada), Term Loan (1 mo. Term SOFR + 2.75%) | 8.18% | 01/31/2030 | 10,529 | 10,552,570 | ||||||||||||
Particle Luxembourg S.a.r.l. (WebPros), Term Loan (3 mo. Term SOFR + 5.25%) | 10.69% | 02/18/2027 | 7,380 | 7,370,346 | ||||||||||||
Philips Domestic Appliances (Nobel Bidco) (Netherlands), Term Loan B (6 mo. EURIBOR + 3.50%) | 7.48% | 06/23/2028 | EUR | 1,500 | 1,564,303 | |||||||||||
Proofpoint, Inc., Term Loan B (1 mo. Term SOFR + 3.25%) | 8.69% | 08/31/2028 | 12,299 | 12,293,475 | ||||||||||||
Quest Software US Holdings, Inc., First Lien Term Loan (3 mo. Term SOFR + 4.25%) | 9.71% | 02/01/2029 | 17,972 | 14,312,399 | ||||||||||||
Renaissance Holding Corp. | ||||||||||||||||
Term Loan (1 mo. Term SOFR + 4.75%) | 10.10% | 04/05/2030 | 4,814 | 4,809,214 | ||||||||||||
Term Loan B(f) | - | 04/08/2030 | 236 | 235,813 | ||||||||||||
SonicWall U.S. Holdings, Inc. | ||||||||||||||||
Second Lien Term Loan (1 mo. Term SOFR + 7.50%) | 13.01% | 05/18/2026 | 1,834 | 1,681,767 | ||||||||||||
Term Loan B (1 mo. Term SOFR + 5.00%) | 10.36% | 05/18/2028 | 7,959 | 7,849,110 | ||||||||||||
Ultimate Software Group, Inc. | ||||||||||||||||
First Lien Incremental Term Loan (3 mo. Term SOFR + 3.25%) | 8.68% | 05/04/2026 | 4,522 | 4,533,012 | ||||||||||||
First Lien Term Loan (3 mo. Term SOFR + 3.75%) | 9.16% | 05/04/2026 | 6,269 | 6,282,707 | ||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 3.50%) | 8.81% | 02/10/2031 | 1,731 | 1,735,127 | ||||||||||||
UST Holdings Ltd., Term Loan B (1 mo. Term SOFR + 3.75%) | 8.94% | 11/19/2028 | 8,715 | 8,686,351 | ||||||||||||
Utimaco (SGT Ultimate BidCo GmbH) (Germany) | ||||||||||||||||
Term Loan B-1 (6 mo. EURIBOR + 6.25%)(d) | 10.28% | 05/31/2029 | EUR | 9,126 | 9,222,254 | |||||||||||
Term Loan B-2 (3 mo. Term SOFR + 6.25%)(d) | 11.99% | 05/31/2029 | 5,122 | 4,732,645 | ||||||||||||
220,935,931 | ||||||||||||||||
Financial Intermediaries–1.20% | ||||||||||||||||
Edelman Financial Center LLC (The), Second Lien Term Loan (1 mo. Term SOFR + 6.75%) | 12.19% | 07/20/2026 | 305 | 306,662 | ||||||||||||
EisnerAmper LLP, Term Loan B(d)(f) | - | 02/24/2031 | 4,770 | 4,746,488 | ||||||||||||
LendingTree, Inc., First Lien Delayed Draw Term Loan (1 mo. Term SOFR + 3.75%) | 9.19% | 09/15/2028 | 12,850 | 11,950,044 | ||||||||||||
Tegra118 Wealth Solutions, Inc., Term Loan (3 mo. Term SOFR + 4.00%) | 9.32% | 02/18/2027 | 6,596 | 6,317,830 | ||||||||||||
Tricor (Thevelia/Vistra-Virtue), First Lien Incremental Term Loan B-1 (1 mo. Term SOFR + 3.75%) | 9.07% | 06/18/2029 | 447 | 448,829 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
9 | Invesco Floating Rate ESG Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Financial Intermediaries–(continued) | ||||||||||||||||
Virtue (Vistra+Tricor/Thevelia LLC) | ||||||||||||||||
First Lien Term Loan (3 mo. Term SOFR + 4.00%) | 9.50% | 06/18/2029 | $ | 5,157 | $ 5,169,052 | |||||||||||
First Lien Term Loan B (1 mo. Term SOFR + 4.75%) | 9.07% | 06/18/2029 | 3,927 | 3,940,448 | ||||||||||||
32,879,353 | ||||||||||||||||
Food Products–2.44% | ||||||||||||||||
Arnott’s (Snacking Investments US LLC), Term Loan (1 mo. Term SOFR + 4.00%) | 9.33% | 12/18/2026 | 6,749 | 6,757,708 | ||||||||||||
Biscuit Hld S.A.S.U. (BISPOU/Cookie Acq) (France), First Lien Term Loan (6 mo. EURIBOR + 4.00%) | 8.14% | 02/15/2027 | EUR | 13,145 | 13,323,694 | |||||||||||
Florida Food Products LLC | ||||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 5.00%) | 10.33% | 10/18/2028 | 3,538 | 3,095,652 | ||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 5.00%) | 10.44% | 10/18/2028 | 14,852 | 13,002,571 | ||||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 8.00%)(d) | 13.44% | 10/18/2029 | 2,864 | 2,076,140 | ||||||||||||
Mosel Bidco SE (Alphia) (Germany), Term Loan B (1 mo. Term SOFR + 5.00%) | 10.35% | 09/16/2030 | 7,311 | 6,744,594 | ||||||||||||
Nomad Foods Ltd. (United Kingdom), Term Loan B-4 (1 mo. Term SOFR + 3.00%) | 8.47% | 03/16/2024 | 4,280 | 4,287,379 | ||||||||||||
Shearer’s Foods LLC, First Lien Term Loan (1 mo. Term SOFR + 4.00%) | 9.32% | 01/31/2031 | 5,984 | 5,984,752 | ||||||||||||
Sigma Bidco (Netherlands), Term Loan B (1 mo. Term SOFR + 4.75%) | 10.31% | 01/02/2028 | 9,825 | 9,773,524 | ||||||||||||
Sigma Holdco B.V. (Netherlands), Term Loan B-7 (6 mo. Term SOFR | 10.31% | 01/03/2028 | EUR | 1,800 | 1,911,394 | |||||||||||
66,957,408 | ||||||||||||||||
Food Service–0.30% | ||||||||||||||||
Areas (Telfer Inv/Financiere Pax) | ||||||||||||||||
Revolver Loan (1 mo. EURIBOR + 3.00%)(d) | 6.88% | 01/02/2026 | EUR | 258 | 257,685 | |||||||||||
Term Loan B (6 mo. EURIBOR + 4.75%) | 8.70% | 07/01/2026 | EUR | 1,281 | 1,381,506 | |||||||||||
Term Loan B(d)(e) | 0.00% | 01/02/2026 | EUR | 816 | 816,000 | |||||||||||
Euro Garages (Netherlands), Term Loan B (1 mo. Term SOFR + 4.25%) | 9.99% | 03/31/2026 | 410 | 410,607 | ||||||||||||
IRB Holding Corp., Term Loan B (1 mo. Term SOFR + 2.75%) | 8.18% | 12/15/2027 | 1,281 | 1,280,750 | ||||||||||||
New Red Finance, Inc., Term Loan B-5 (1 mo. Term SOFR + 2.25%) | 7.58% | 09/23/2030 | 4,150 | 4,138,315 | ||||||||||||
8,284,863 | ||||||||||||||||
Forest Products–0.32% | ||||||||||||||||
NewLife Forest Restoration LLC, Term Loan | 0.00% | 09/05/2024 | 7,267 | 7,266,757 | ||||||||||||
Restoration Forest Products Group LLC, Term Loan(d)(f) | - | 01/31/2031 | 1,469 | 1,469,613 | ||||||||||||
8,736,370 | ||||||||||||||||
Health Care–3.82% | ||||||||||||||||
Acacium (Impala Bidco Ltd./ICS US, Inc.) (United Kingdom), Incremental Term Loan B (1 mo. Term SOFR + 5.25%)(d) | 9.90% | 06/08/2028 | 2,922 | 2,746,901 | ||||||||||||
Ascend Learning LLC, First Lien Term Loan (1 mo. Term SOFR + 3.50%) | 8.93% | 12/11/2028 | 8,151 | 8,024,190 | ||||||||||||
Bracket Intermediate Holding Corp. (Signant), First Lien Term Loan (1 mo. Term SOFR + 5.00%) | 10.45% | 05/08/2028 | 3,449 | 3,452,205 | ||||||||||||
Cerba (Chrome Bidco) (France) | ||||||||||||||||
Term Loan B (1 mo. EURIBOR + 3.70%) | 7.56% | 06/30/2028 | EUR | 6,000 | 6,084,134 | |||||||||||
Term Loan C (3 mo. EURIBOR + 4.00%) | 7.86% | 02/16/2029 | EUR | 1,681 | 1,715,820 | |||||||||||
Curium BidCo S.a.r.l. (Luxembourg), Term Loan (1 mo. Term SOFR + 4.50%) | 9.85% | 07/31/2029 | 1,883 | 1,884,920 | ||||||||||||
Ethypharm (Financiere Verdi, Orphea Ltd.) (France), Term Loan B (3 mo. SONIA + 4.50%) | 9.69% | 04/17/2028 | GBP | 1,119 | 1,332,355 | |||||||||||
Explorer Holdings, Inc., First Lien Term Loan (1 mo. Term SOFR + 4.50%) | 9.94% | 02/04/2027 | 12,794 | 12,824,974 | ||||||||||||
Global Medical Response, Inc. | ||||||||||||||||
Term Loan (3 mo. Term SOFR + 4.25%) | 9.82% | 03/14/2025 | 8,829 | 7,828,077 | ||||||||||||
Term Loan (3 mo. Term SOFR + 4.25%) | 9.84% | 10/02/2025 | 5,071 | 4,497,729 | ||||||||||||
HC Group Holdings III, Inc., Term Loan B (1 mo. Term SOFR + 2.75%) | 8.19% | 10/25/2028 | 360 | 361,119 | ||||||||||||
ICU Medical, Inc., Term Loan B (1 mo. Term SOFR + 2.50%) | 8.00% | 01/08/2029 | 2,685 | 2,682,358 | ||||||||||||
Inovie Group Bidco (Labosud) (France), Term Loan B (3 mo. EURIBOR + 4.00%) | 7.93% | 03/03/2028 | EUR | 2,601 | 2,713,304 | |||||||||||
International SOS L.P., Term Loan (3 mo. Term SOFR + 3.50%)(d) | 8.82% | 09/07/2028 | 7,592 | 7,610,905 | ||||||||||||
MB2 Dental Solutions LLC | ||||||||||||||||
Delayed Draw Term Loan(d)(e) | 0.00% | 02/13/2031 | 1,428 | 1,428,342 | ||||||||||||
Delayed Draw Term Loan(d)(e) | 0.00% | 02/13/2031 | 857 | 857,005 | ||||||||||||
Revolver Loan(d)(e) | 0.00% | 02/13/2031 | 286 | 282,812 | ||||||||||||
Term Loan (1 mo. Term SOFR +6.00%)(d) | 11.32% | 02/15/2031 | 4,125 | 4,083,802 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
10 | Invesco Floating Rate ESG Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Health Care–(continued) | ||||||||||||||||
MedAssets Software Intermediate Holdings, Inc. (nThrive TSG) | ||||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 4.00%) | 9.44% | 12/18/2028 | $ | 6,487 | $ 5,453,622 | |||||||||||
Second Lien Term Loan (1 mo. Term SOFR + 6.75%) | 12.19% | 12/17/2029 | 1,991 | 1,244,833 | ||||||||||||
MJH Healthcare Holdings LLC, Term Loan B (1 mo. Term SOFR + 3.50%) | 8.93% | 01/28/2029 | 995 | 992,449 | ||||||||||||
Organon & Co., Term Loan B (3 mo. Term SOFR + 3.00%) | 8.43% | 06/02/2028 | 8,922 | 8,944,550 | ||||||||||||
PAREXEL International Corp., First Lien Term Loan (1 mo. Term SOFR + 3.25%) | 8.69% | 11/15/2028 | 3,303 | 3,304,440 | ||||||||||||
Sharp Midco LLC | ||||||||||||||||
Incremental Term Loan B (3 mo. Term SOFR + 4.50%)(d) | 9.85% | 12/31/2028 | 1,171 | 1,173,318 | ||||||||||||
Term Loan B (3 mo. Term SOFR + 4.00%)(d) | 9.45% | 12/31/2028 | 1,221 | 1,223,936 | ||||||||||||
Summit Behavioral Healthcare LLC, First Lien Term Loan (3 mo. Term SOFR + 4.75%) | 10.35% | 11/24/2028 | 1,336 | 1,336,480 | ||||||||||||
Sunshine Luxembourg VII S.a.r.l. (Nestle Skin Health) (Switzerland), Term Loan (3 mo. Term SOFR + 3.75%) | 8.95% | 10/01/2026 | 405 | 405,827 | ||||||||||||
TTF Holdings LLC (Soliant), Term Loan B (1 mo. Term SOFR + 4.00%) | 9.44% | 03/31/2028 | 1,716 | 1,718,065 | ||||||||||||
Verscend Holding Corp., Term Loan B-1 (1 mo. Term SOFR + 4.00%) | 9.44% | 08/27/2025 | 3,076 | 3,082,454 | ||||||||||||
Women’s Care Holdings, Inc. | ||||||||||||||||
Second Lien Term Loan (3 mo. Term SOFR + 8.25%) | 13.66% | 01/12/2029 | 551 | 431,961 | ||||||||||||
Term Loan (3 mo. Term SOFR + 4.50%) | 9.91% | 01/15/2028 | 3,069 | 2,683,209 | ||||||||||||
Zelis Cost Management Buyer, Inc., Term Loan B-2 (1 mo. Term SOFR + 2.75%) | 8.07% | 09/28/2029 | 2,366 | 2,368,137 | ||||||||||||
104,774,233 | ||||||||||||||||
Home Furnishings–1.75% | ||||||||||||||||
Hilding Anders AB (Sweden) | ||||||||||||||||
Term Loan (6 mo. EURIBOR + 5.00%) (Acquired 10/04/2022-07/21/2023; Cost $1,082,762)(g) | 9.11% | 02/28/2026 | EUR | 1,289 | 522,296 | |||||||||||
Term Loan (6 mo. EURIBOR + 10.00%)(d) | 13.69% | 12/31/2026 | EUR | 99 | 103,923 | |||||||||||
Term Loan (3 mo. EURIBOR + 10.00%) (Acquired 09/26/2023; Cost $134,030)(d)(g) | 13.97% | 12/31/2026 | EUR | 127 | 133,603 | |||||||||||
Term Loan (6 mo. EURIBOR + 0.00%) (Acquired 10/04/2022-10/31/2023; Cost $160,895)(d)(g) | 12.00% | 02/26/2027 | EUR | 1,235 | 0 | |||||||||||
HomeServe USA Holding Corp., Term Loan (1 mo. Term SOFR + 3.00%) | 8.32% | 10/21/2030 | 3,801 | 3,803,197 | ||||||||||||
Hunter Douglas Holding B.V., Term Loan B-1 (3 mo. Term SOFR + 3.50%) | 8.82% | 02/26/2029 | 7,146 | 7,078,066 | ||||||||||||
Mattress Holding Corp., Term Loan (3 mo. Term SOFR + 4.25%) | 9.86% | 09/25/2028 | 10,876 | 10,873,195 | ||||||||||||
Serta Simmons Bedding LLC, Term Loan (1 mo. Term SOFR + 7.50%) | 12.96% | 06/29/2028 | 9,641 | 8,861,116 | ||||||||||||
SIWF Holdings, Inc., Term Loan B (1 mo. Term SOFR + 4.00%) | 9.44% | 10/06/2028 | 8,550 | 7,769,960 | ||||||||||||
VC GB Holdings, Inc. (aka Generation Brands), Second Lien Term Loan (1 mo. Term SOFR + 6.75%) | 12.36% | 07/01/2029 | 2,122 | 2,077,768 | ||||||||||||
Weber-Stephen Products LLC | ||||||||||||||||
Incremental Term Loan B (1 mo. Term SOFR + 4.25%) | 9.68% | 10/30/2027 | 1,714 | 1,568,698 | ||||||||||||
Term Loan B (1 mo. Term SOFR + 3.25%) | 8.69% | 10/30/2027 | 5,794 | 5,286,809 | ||||||||||||
48,078,631 | ||||||||||||||||
Industrial Equipment–4.64% | ||||||||||||||||
Chart Industries, Inc., Term Loan (1 mo. Term SOFR + 3.25%) | 8.67% | 03/15/2030 | 4,116 | 4,131,232 | ||||||||||||
Crosby US Acquisition Corp., Term Loan (1 mo. Term SOFR + 4.00%) | 9.32% | 08/16/2029 | 2,921 | 2,936,656 | ||||||||||||
Deliver Buyer, Inc. (MHS Holdings), Term Loan (3 mo. Term SOFR + 5.50%) | 10.83% | 06/01/2029 | 9,807 | 8,907,619 | ||||||||||||
DXP Enterprises, Inc., Incremental Term Loan (1 mo. Term SOFR + 4.75%) | 10.29% | 10/11/2030 | 5,387 | 5,402,281 | ||||||||||||
EMRLD Borrower L.P. (Copeland), Term Loan B (1 mo. Term SOFR + 2.50%) | 7.79% | 05/31/2030 | 3,044 | 3,040,887 | ||||||||||||
Kantar (Summer BC Bidco/KANGRP) (United Kingdom) | ||||||||||||||||
Revolver Loan (1 mo. SONIA + 3.50%)(d)(f) | 8.72% | 06/04/2026 | 1,997 | 1,608,767 | ||||||||||||
Revolver Loan(d)(e) | 0.00% | 06/04/2026 | 5,232 | 4,761,233 | ||||||||||||
Term Loan B (3 mo. Term SOFR + 5.00%) | 10.63% | 12/04/2026 | 7,112 | 7,094,377 | ||||||||||||
Term Loan B(d) | 10.43% | 02/13/2029 | 1,395 | 1,390,261 | ||||||||||||
Term Loan B-2 (3 mo. Term SOFR + 4.50%) | 10.11% | 12/04/2026 | 581 | 579,849 | ||||||||||||
Minimax (-Viking GmbH, -MX Holdings US, Inc.), Term Loan B-1D (1 mo. Term SOFR + 2.75%) | 8.19% | 07/31/2028 | 493 | 493,247 | ||||||||||||
MKS Instruments, Inc., Term Loan B (1 mo. Term SOFR + 2.50%) | 7.82% | 08/17/2029 | 13,832 | 13,833,106 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
11 | Invesco Floating Rate ESG Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Industrial Equipment–(continued) | ||||||||||||||||
Robertshaw US Holding Corp. | ||||||||||||||||
First Lien Term Loan (3 mo. Term SOFR + 3.00%) (Acquired 05/10/2023-10/17/2023; Cost $18,719,804)(g)(i)(j) | 8.63% | 02/28/2027 | $ | 18,854 | $ 18,382,757 | |||||||||||
Revolver Loan (Acquired 11/14/2023-11/22/2023; Cost $5,623,321)(d)(e)(g)(i)(j) | 0.00% | 06/24/2027 | 5,620 | 5,619,809 | ||||||||||||
Second Lien Term Loan (3 mo. Term SOFR + 7.00%) (Acquired 05/09/2023-07/14/2023; Cost $12,914,681)(d)(g)(i)(j) | 12.63% | 05/10/2025 | 21,293 | 12,456,201 | ||||||||||||
Third Lien Term Loan (3 mo. Term SOFR + 5.50%) (Acquired 05/09/2023; Cost $1,321,235)(d)(g)(i)(j) | 11.00% | 05/10/2025 | 4,778 | 2,795,123 | ||||||||||||
Tank Holding Corp. | ||||||||||||||||
Revolver Loan (1 mo. Term SOFR + 0.36%)(d) | 0.38% | 03/31/2028 | 284 | 275,282 | ||||||||||||
Revolver Loan(d)(e) | 0.00% | 03/31/2028 | 1,418 | 1,376,379 | ||||||||||||
Term Loan (1 mo. Term SOFR + 6.00%) | 11.18% | 03/31/2028 | 20,320 | 20,167,915 | ||||||||||||
Thyssenkrupp Elevators (Vertical Midco GmbH) (Germany), Term Loan B (6 mo. Term SOFR + 3.50%) | 9.08% | 07/30/2027 | 3,856 | 3,865,919 | ||||||||||||
Victory Buyer LLC (Vantage Elevator) | ||||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 3.75%) | 9.34% | 11/19/2028 | 7,614 | 7,345,995 | ||||||||||||
Second Lien Term Loan (3 mo. Term SOFR + 7.00%)(d) | 12.59% | 11/19/2029 | 789 | 680,584 | ||||||||||||
127,145,479 | ||||||||||||||||
Insurance–2.60% | ||||||||||||||||
Acrisure LLC | ||||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 3.50%) | 8.94% | 02/15/2027 | 7,237 | 7,238,897 | ||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 3.75%) | 9.19% | 02/15/2027 | 6,861 | 6,869,215 | ||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 4.25%) | 9.69% | 02/15/2027 | 7,384 | 7,409,934 | ||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 4.50%) | 9.83% | 11/06/2030 | 2,062 | 2,077,131 | ||||||||||||
Alliant Holdings Intermediate LLC, Term Loan B-6 (1 mo. Term SOFR + 3.50%) | 8.82% | 11/06/2030 | 9,632 | 9,647,171 | ||||||||||||
Hub International Ltd., Term Loan B (1 mo. Term SOFR + 3.25%) | 8.57% | 06/20/2030 | 2,489 | 2,489,269 | ||||||||||||
Ryan Specialty Group LLC, Term Loan (1 mo. Term SOFR + 3.00%) | 8.08% | 09/01/2027 | 7,564 | 7,581,789 | ||||||||||||
Sedgwick Claims Management Services, Inc., Term Loan (1 mo. Term SOFR + 3.75%) | 9.08% | 02/24/2028 | 12,873 | 12,906,254 | ||||||||||||
USI, Inc. | ||||||||||||||||
Term Loan (1 mo. Term SOFR + 3.25%) | 8.60% | 09/27/2030 | 4,272 | 4,277,310 | ||||||||||||
Term Loan B (1 mo. Term SOFR + 3.00%) | 8.35% | 11/22/2029 | 10,731 | 10,739,656 | ||||||||||||
71,236,626 | ||||||||||||||||
Leisure Goods, Activities & Movies–3.31% | ||||||||||||||||
Accell Group (Sprint HoldCo) (Netherlands), Term Loan B (3 mo. EURIBOR + 4.90%) | 8.86% | 06/14/2029 | EUR | 2,500 | 1,104,064 | |||||||||||
Bright Horizons Family Solutions, Inc., Term Loan B (1 mo. Term SOFR + 2.25%) | 7.69% | 11/19/2028 | 1,509 | 1,508,312 | ||||||||||||
Carnival Corp. | ||||||||||||||||
Incremental Term Loan B (1 mo. Term SOFR + 3.25%) | 8.69% | 10/18/2028 | 21,077 | 21,136,074 | ||||||||||||
Term Loan (1 mo. Term SOFR + 3.00%) | 8.32% | 08/09/2027 | 3,586 | 3,593,509 | ||||||||||||
Crown Finance US, Inc., Term Loan (1 mo. Term SOFR + 8.50%) | 7.00% | 07/31/2028 | 10,308 | 10,458,932 | ||||||||||||
Fitness International LLC, Term Loan B (1 mo. Term SOFR +5.25%)(d) | 10.58% | 02/05/2029 | 6,450 | 6,280,683 | ||||||||||||
Lakeland Tours LLC, Term Loan (6 mo. USD LIBOR + 8.00%)(d) | 8.00% | 09/25/2027 | 1,122 | 785,740 | ||||||||||||
Nord Anglia Education (Singapore) | ||||||||||||||||
Incremental Term Loan (3 mo. Term SOFR +3.75%) | 9.07% | 02/15/2031 | 3,044 | 3,048,059 | ||||||||||||
Term Loan B (1 mo. Term SOFR + 4.00%) | 9.34% | 01/31/2028 | 5,292 | 5,303,739 | ||||||||||||
OEG Borrower LLC (Opry Entertainment), Term Loan (3 mo. Term SOFR + 5.00%)(d) | 10.48% | 06/18/2029 | 7,183 | 7,200,892 | ||||||||||||
Parques Reunidos (Piolin Bidco S.A.U.) (Spain) | ||||||||||||||||
Revolver Loan (1 mo. Term SOFR + 3.50%) | 8.82% | 03/16/2026 | EUR | 5,474 | 5,487,485 | |||||||||||
Revolver Loan(e) | 0.00% | 03/16/2026 | 126 | 126,369 | ||||||||||||
Scenic (Columbus Capital B.V.) (Australia), Term Loan (3 mo. EURIBOR + 3.75%) | 7.68% | 02/27/2027 | EUR | 11,390 | 10,974,974 | |||||||||||
Seaworld Parks & Entertainment, Inc., Term Loan B-2 (1 mo. Term SOFR + 2.50%) | 7.83% | 08/25/2028 | 2,801 | 2,803,722 | ||||||||||||
Six Flags Theme Parks, Inc., Term Loan B (1 mo. Term SOFR + 1.75%) | 7.18% | 04/17/2026 | 1,229 | 1,229,343 | ||||||||||||
Topgolf Callaway Brands Corp., Term Loan (1 mo. Term SOFR + 3.50%) | 8.93% | 03/15/2030 | 575 | 575,905 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
12 | Invesco Floating Rate ESG Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Leisure Goods, Activities & Movies–(continued) | ||||||||||||||||
Vue International Bidco PLC (United Kingdom) | ||||||||||||||||
Term Loan (Acquired 02/21/2024; Cost $1,295,736)(g) |
| - |
|
| 06/30/2027 |
| EUR |
| 1,260 |
| $ 1,389,596 | |||||
Term Loan (6 mo. EURIBOR + 8.00%) (Acquired 09/15/2022-09/22/2022; Cost $2,204,010)(g) |
| 12.13% |
|
| 06/30/2027 |
| EUR |
| 2,223 |
| 2,364,907 | |||||
Term Loan (6 mo. EURIBOR + 8.50%) | 6.50% | 12/31/2027 | EUR | 13,629 | 5,180,042 | |||||||||||
90,552,347 | ||||||||||||||||
Lodging & Casinos–1.43% | ||||||||||||||||
Aimbridge Acquisition Co., Inc. | ||||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 3.75%) | 9.19% | 02/02/2026 | $ | 6,454 | 6,188,125 | |||||||||||
First Lien Term Loan (1 mo. Term SOFR + 4.75%) | 10.19% | 02/02/2026 | 1,397 | 1,354,013 | ||||||||||||
Hilton Grand Vacations Borrower LLC | ||||||||||||||||
Term Loan (1 mo. Term SOFR + 3.00%) | 8.19% | 08/02/2028 | 6,405 | 6,408,955 | ||||||||||||
Term Loan (1 mo. Term SOFR + 2.75%) | 8.19% | 01/17/2031 | 4,757 | 4,755,922 | ||||||||||||
HotelBeds (United Kingdom) | ||||||||||||||||
Term Loan B-2 (3 mo. EURIBOR + 5.00%) | 8.70% | 09/12/2028 | EUR | 3,975 | 4,305,191 | |||||||||||
Term Loan C (6 mo. EURIBOR + 4.25%) | 8.20% | 09/30/2027 | EUR | 2,534 | 2,738,497 | |||||||||||
Term Loan D (6 mo. EURIBOR + 5.25%) | 9.18% | 09/12/2027 | EUR | 8,094 | 8,775,940 | |||||||||||
Travel + Leisure Co., Incremental Term Loan (1 mo. Term SOFR + 3.25%) | 8.67% | 12/14/2029 | 4,551 | 4,559,756 | ||||||||||||
39,086,399 | ||||||||||||||||
Nonferrous Metals & Minerals–0.83% | ||||||||||||||||
American Rock Salt Co. LLC | ||||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 4.00%) | 9.44% | 06/09/2028 | 5,174 | 4,725,899 | ||||||||||||
Second Lien Term Loan (1 mo. Term SOFR + 7.25%) | 12.69% | 06/11/2029 | 212 | 180,097 | ||||||||||||
AZZ, Inc., Term Loan (1 mo. Term SOFR + 4.25%) | 9.08% | 05/13/2029 | 7,479 | 7,495,264 | ||||||||||||
Covia Holdings Corp., Term Loan (3 mo. Term SOFR + 4.00%) | 9.59% | 07/31/2026 | 8,187 | 8,174,779 | ||||||||||||
Form Technologies LLC, First Lien Term Loan (3 mo. Term SOFR + 9.00%) | 14.44% | 10/22/2025 | 2,084 | 1,484,894 | ||||||||||||
SCIH Salt Holdings, Inc. (Kissner Group), First Lien Incremental Term Loan B-1 (3 mo. Term SOFR + 4.00%) | 9.44% | 03/16/2027 | 756 | 756,304 | ||||||||||||
22,817,237 | ||||||||||||||||
Oil & Gas–1.75% | ||||||||||||||||
Brazos Delaware II LLC, Term Loan (1 mo. Term SOFR + 3.75%) | 9.07% | 02/11/2030 | 3,583 | 3,584,259 | ||||||||||||
GIP Pilot Acquisition Partners L.P. (Global Infrastructure), Term Loan (3 mo. Term SOFR + 3.00%) | 8.33% | 10/04/2030 | 3,510 | 3,516,026 | ||||||||||||
Gulf Finance LLC, Term Loan (1 mo. Term SOFR + 6.75%) | 12.19% | 08/25/2026 | 3,734 | 3,736,055 | ||||||||||||
ITT Holdings LLC (IMTT), Incremental Term Loan (1 mo. Term SOFR + 3.25%) | 8.68% | 10/11/2030 | 3,824 | 3,764,570 | ||||||||||||
McDermott International Ltd. | ||||||||||||||||
LOC(e) | 0.00% | 06/28/2024 | 6,610 | 4,296,708 | ||||||||||||
LOC (3 mo. Term SOFR + 4.00%)(d) | 9.59% | 06/30/2024 | 2,365 | 1,241,483 | ||||||||||||
LOC (Acquired 09/08/2023; Cost $1,692,154)(d)(e)(g) |
| 0.00% |
|
| 12/31/2026 |
|
| 1,692 |
| 1,446,792 | ||||||
LOC (3 mo. Term SOFR +4.75%) (Acquired 09/08/2023; Cost $262,863)(d)(g) |
| 10.41% |
|
| 12/31/2026 |
|
| 525 |
| 448,734 | ||||||
PIK Second Lien Term Loan, 3.00% PIK Rate, 6.44% Cash Rate (1 mo. Term SOFR + 1.00%)(h) | 3.00% | 06/30/2025 | 1,576 | 656,741 | ||||||||||||
Term Loan (1 mo. Term SOFR + 3.00%) (Acquired 06/30/2020; Cost $284,355)(d)(g) |
| 8.44% |
|
| 06/28/2024 |
|
| 279 |
| 153,453 | ||||||
Term Loan (3 mo. Term SOFR + 7.50%) (Acquired 09/12/2023-12/08/2023; Cost $1,628,115)(d)(g) |
| 13.14% |
|
| 12/31/2026 |
|
| 1,628 |
| 1,607,764 | ||||||
Petroleum GEO-Services ASA (Norway), Term Loan (3 mo. Term SOFR + 6.75%) | 12.10% | 03/18/2024 | 1,133 | 1,140,805 | ||||||||||||
PG Investment Co. 59 S.a.r.l./URSA Minor US Bidco LLC (Rosen) (Luxembourg), Term Loan B (1 mo. Term SOFR + 3.50%)(f) | 8.83% | 02/24/2031 | 5,602 | 5,613,244 | ||||||||||||
Planet US Buyer LLC (Wood Mackenzie), Term Loan (1 mo. Term SOFR + 3.50%) | 8.81% | 02/07/2031 | 4,902 | 4,905,237 | ||||||||||||
TransMontaigne Partners LLC, Term Loan B (1 mo. Term SOFR + 3.50%) | 8.88% | 11/17/2028 | 10,188 | 10,109,939 | ||||||||||||
WhiteWater Whistler Holdings LLC, Term Loan B-1 (1 mo. Term SOFR + 2.75%) | 8.13% | 02/15/2030 | 1,589 | 1,590,966 | ||||||||||||
47,812,776 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
13 | Invesco Floating Rate ESG Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Publishing–2.62% | ||||||||||||||||
Cengage Learning, Inc., Term Loan B (3 mo. Term SOFR + 4.75%) | 10.33% | 06/29/2026 | $ | 20,464 | $ 20,488,078 | |||||||||||
Century DE Buyer LLC (Simon & Schuster), Term Loan (3 mo. Term SOFR + 4.00%) | 9.32% | 10/30/2030 | 4,032 | 4,052,644 | ||||||||||||
Dotdash Meredith, Inc., Term Loan B (1 mo. Term SOFR + 4.00%) | 9.43% | 12/01/2028 | 12,733 | 12,647,861 | ||||||||||||
Harbor Purchaser, Inc. (Houghton Mifflin Harcourt) | ||||||||||||||||
First Lien Term Loan B (1 mo. Term SOFR + 5.25%) | 10.68% | 04/09/2029 | 10,717 | 10,548,911 | ||||||||||||
Second Lien Term Loan B (1 mo. Term SOFR + 8.00%) | 13.83% | 04/08/2030 | 8,460 | 7,819,211 | ||||||||||||
McGraw-Hill Education, Inc., Term Loan (1 mo. Term SOFR + 4.75%) | 10.19% | 07/28/2028 | 13,650 | 13,616,694 | ||||||||||||
Micro Holding L.P., Term Loan B-3 (1 mo. Term SOFR + 4.25%) | 9.58% | 05/03/2028 | 2,674 | 2,634,294 | ||||||||||||
71,807,693 | ||||||||||||||||
Radio & Television–0.36% | ||||||||||||||||
iHeartCommunications, Inc. | ||||||||||||||||
Second Lien Incremental Term Loan (1 mo. Term SOFR + 3.25%) | 8.69% | 05/01/2026 | 1,115 | 955,061 | ||||||||||||
Term Loan (1 mo. Term SOFR + 3.00%) | 8.44% | 05/01/2026 | 4,455 | 3,942,647 | ||||||||||||
Nexstar Broadcasting, Inc. | ||||||||||||||||
Term Loan B (1 mo. Term SOFR + 2.50%) | 7.95% | 06/02/2028 | 2,419 | 2,414,311 | ||||||||||||
Term Loan B-4 (1 mo. Term SOFR + 2.50%) | 7.94% | 09/18/2026 | 2,189 | 2,187,160 | ||||||||||||
Sinclair Television Group, Inc. | ||||||||||||||||
Term Loan B-3 (1 mo. Term SOFR + 3.00%) | 8.44% | 04/01/2028 | 340 | 286,889 | ||||||||||||
Term Loan B-4 (1 mo. Term SOFR + 3.75%) | 9.18% | 04/21/2029 | 56 | 47,257 | ||||||||||||
9,833,325 | ||||||||||||||||
Retailers (except Food & Drug)–1.46% | ||||||||||||||||
Action Holding B.V. (Netherlands) | ||||||||||||||||
Term Loan B-3 (3 mo. EURIBOR + 3.75%) | 7.68% | 09/29/2028 | EUR | 886 | 959,832 | |||||||||||
Term Loan B-4 (3 mo. Term SOFR + 3.25%) | 8.56% | 10/28/2030 | 7,016 | 7,043,573 | ||||||||||||
CNT Holdings I Corp. (1-800 Contacts), First Lien Term Loan (3 mo. Term SOFR + 3.50%) | 8.82% | 11/08/2027 | 11,934 | 11,941,791 | ||||||||||||
PetSmart, Inc., Term Loan (1 mo. Term SOFR + 3.75%) | 9.18% | 02/11/2028 | 13,721 | 13,689,405 | ||||||||||||
Savers, Inc., Term Loan (1 mo. Term SOFR + 5.50%) | 9.36% | 04/26/2028 | 6,400 | 6,439,670 | ||||||||||||
40,074,271 | ||||||||||||||||
Surface Transport–1.60% | ||||||||||||||||
First Student Bidco, Inc. | ||||||||||||||||
Incremental Term Loan B (3 mo. Term SOFR + 4.00%) | 9.45% | 07/21/2028 | 12,187 | 12,198,825 | ||||||||||||
Term Loan B (3 mo. Term SOFR + 3.00%) | 8.61% | 07/21/2028 | 4,241 | 4,216,489 | ||||||||||||
Term Loan C (3 mo. Term SOFR + 3.00%) | 8.36% | 07/21/2028 | 1,287 | 1,278,781 | ||||||||||||
Hurtigruten (Explorer II AS) (United Kingdom) | ||||||||||||||||
Term Loan (3 mo. EURIBOR +8.50%) | 12.44% | 02/22/2029 | EUR | 5,726 | 2,485,792 | |||||||||||
Term Loan B (3 mo. EURIBOR +6.50%) | 10.44% | 09/30/2027 | EUR | 3,114 | 3,191,802 | |||||||||||
Novae LLC, Term Loan B (3 mo. Term SOFR + 5.00%) | 10.52% | 12/22/2028 | 1,458 | 1,452,156 | ||||||||||||
PODS LLC | ||||||||||||||||
Incremental Term Loan B (1 mo. Term SOFR + 4.00%)(d) | 9.44% | 03/31/2028 | 4,305 | 4,251,318 | ||||||||||||
Term Loan (1 mo. Term SOFR + 3.00%) | 8.44% | 03/31/2028 | 11,824 | 11,656,255 | ||||||||||||
Reception Purchaser LLC (STG - XPOI Opportunity), Term Loan (1 mo. Term SOFR + 6.00%) | 11.50% | 03/24/2028 | 6,533 | 3,070,203 | ||||||||||||
43,801,621 | ||||||||||||||||
Telecommunications–3.47% | ||||||||||||||||
Avaya, Inc., Term Loan | 6.83% | 08/01/2028 | 8,591 | 7,653,729 | ||||||||||||
Cablevision Lightpath LLC, Term Loan (1 mo. Term SOFR + 3.25%) | 8.68% | 11/30/2027 | 5,947 | 5,922,090 | ||||||||||||
CCI Buyer, Inc. (Consumer Cellular), First Lien Term Loan (3 mo. Term SOFR + 3.75%) | 9.35% | 12/17/2027 | 3,782 | 3,763,470 | ||||||||||||
CenturyLink, Inc., Term Loan B (1 mo. Term SOFR + 2.25%) | 7.69% | 03/15/2027 | 7,306 | 5,350,663 | ||||||||||||
Crown Subsea Communications Holding, Inc., Term Loan (1 mo. Term SOFR + 4.75%)(d) | 10.07% | 01/30/2031 | 11,796 | 11,869,496 | ||||||||||||
Genesys Cloud Services Holdings I LLC, Incremental Term Loan (1 mo. Term SOFR + 3.75%) | 9.19% | 12/01/2027 | 1,755 | 1,762,150 | ||||||||||||
II-VI, Inc., Term Loan B (1 mo. Term SOFR + 2.75%) | 8.19% | 07/02/2029 | 5,115 | 5,125,393 | ||||||||||||
Inmarsat Finance PLC (United Kingdom), Term Loan (1 mo. Term SOFR + 3.50%) | 8.83% | 12/11/2026 | 6,451 | 6,451,002 | ||||||||||||
Iridium Satellite LLC, Term Loan (1 mo. Term SOFR + 2.50%) | 7.83% | 09/20/2030 | 930 | 930,275 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
14 | Invesco Floating Rate ESG Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Telecommunications–(continued) | ||||||||||||||||
MLN US HoldCo LLC (dba Mitel) | ||||||||||||||||
First Lien Term Loan B (3 mo. Term SOFR + 4.50%) | 9.97% | 11/30/2025 | $ | 328 | $ 40,394 | |||||||||||
Second Lien Term Loan B (3 mo. Term SOFR + 8.75%) | 14.22% | 11/30/2026 | 215 | 20,976 | ||||||||||||
Second Lien Term Loan B-1 (3 mo. Term SOFR + 6.70%) | 12.11% | 10/18/2027 | 32,765 | 6,552,925 | ||||||||||||
Term Loan (3 mo. Term SOFR +4.50%) | 11.85% | 10/18/2027 | 13,941 | 8,364,527 | ||||||||||||
Third Lien Term Loan (3 mo. Term SOFR + 9.25%) | 14.66% | 10/18/2027 | 8,144 | 1,126,562 | ||||||||||||
Telesat LLC, Term Loan B-5 (1 mo. Term SOFR + 2.75%) | 8.35% | 12/07/2026 | 10,390 | 6,253,765 | ||||||||||||
ViaSat, Inc. | ||||||||||||||||
Term Loan (1 mo. Term SOFR + 3.75%) | 9.83% | 03/02/2029 | 8,189 | 8,062,131 | ||||||||||||
Term Loan B (1 mo. Term SOFR + 4.50%) | 9.94% | 05/30/2030 | 3,755 | 3,699,829 | ||||||||||||
Voyage Digital (NC) Ltd., Term Loan B (3 mo. Term SOFR + 4.50%)(d) | 9.32% | 05/10/2029 | 5,416 | 5,429,339 | ||||||||||||
Windstream Services LLC, Term Loan (1 mo. Term SOFR + 6.25%) | 11.68% | 09/21/2027 | 6,868 | 6,661,281 | ||||||||||||
95,039,997 | ||||||||||||||||
Utilities–1.82% | ||||||||||||||||
Brookfield WEC Holdings, Inc., First Lien Term Loan (1 mo. Term SOFR + 2.75%) | 8.08% | 01/20/2031 | 16,790 | 16,745,885 | ||||||||||||
Covanta Energy Corp. | ||||||||||||||||
Incremental Term Loan B (1 mo. Term SOFR + 3.00%) | 8.32% | 11/30/2028 | 4,306 | 4,301,698 | ||||||||||||
Term Loan C (1 mo. Term SOFR +3.00%) | 8.32% | 11/30/2028 | 324 | 323,436 | ||||||||||||
Covanta Holding Corp. | ||||||||||||||||
Incremental Term Loan B (3 mo. Term SOFR + 2.75%) | 8.07% | 11/30/2028 | 951 | 949,930 | ||||||||||||
Incremental Term Loan C (3 mo. Term SOFR + 2.75%) | 8.07% | 11/30/2028 | 52 | 51,909 | ||||||||||||
Generation Bridge Northeast LLC, Term Loan B (1 mo. Term SOFR + 4.25%) | 9.58% | 08/22/2029 | 3,759 | 3,775,065 | ||||||||||||
Granite Generation LLC, Term Loan (1 mo. Term SOFR + 3.75%) | 9.19% | 11/09/2026 | 6,506 | 6,510,018 | ||||||||||||
KAMC Holdings, Inc. (Franklin Energy Group), First Lien Term Loan B (6 mo. Term SOFR + 4.00%) | 9.60% | 08/14/2026 | 5,061 | 4,626,417 | ||||||||||||
Nautilus Power LLC, Term Loan (1 mo. Term SOFR + 5.25%) | 10.86% | 11/16/2026 | 719 | 613,453 | ||||||||||||
Talen Energy Supply LLC | ||||||||||||||||
Term Loan B (1 mo. Term SOFR + 4.50%) | 9.83% | 05/17/2030 | 6,994 | 7,025,718 | ||||||||||||
Term Loan C (1 mo. Term SOFR + 4.50%) | 9.83% | 05/17/2030 | 5,027 | 5,049,756 | ||||||||||||
49,973,285 | ||||||||||||||||
Total Variable Rate Senior Loan Interests (Cost $2,450,377,377) | 2,349,509,983 | |||||||||||||||
U.S. Dollar Denominated Bonds & Notes–5.26% | ||||||||||||||||
Aerospace & Defense–0.30% | ||||||||||||||||
Rand Parent LLC (k) | 8.50% | 02/15/2030 | 8,332 | 8,103,471 | ||||||||||||
Air Transport–0.07% | ||||||||||||||||
American Airlines, Inc. (k) | 8.50% | 05/15/2029 | 1,902 | 2,000,682 | ||||||||||||
Automotive–0.01% | ||||||||||||||||
Wand NewCo 3, Inc. (k) | 7.63% | 01/30/2032 | 143 | 147,053 | ||||||||||||
Building & Development–0.54% | ||||||||||||||||
Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LLC (k) | 5.75% | 05/15/2026 | 2,637 | 2,545,837 | ||||||||||||
Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LLC(k) | 4.50% | 04/01/2027 | 10,955 | 9,643,261 | ||||||||||||
Signal Parent, Inc.(k) | 6.13% | 04/01/2029 | 3,431 | 2,680,537 | ||||||||||||
14,869,635 | ||||||||||||||||
Business Equipment & Services–0.71% | ||||||||||||||||
ADT Security Corp. (The) (k) | 4.13% | 08/01/2029 | 10,363 | 9,375,665 | ||||||||||||
Allied Universal Holdco LLC(k) | 7.88% | 02/15/2031 | 1,367 | 1,359,249 | ||||||||||||
GTCR W-2 Merger Sub LLC(k) | 7.50% | 01/15/2031 | 8,301 | 8,664,750 | ||||||||||||
19,399,664 | ||||||||||||||||
Cable & Satellite Television–0.93% | ||||||||||||||||
Altice Financing S.A. (Luxembourg) (k) | 5.75% | 08/15/2029 | 2,188 | 1,886,812 | ||||||||||||
Altice Financing S.A. (Luxembourg)(k) | 5.00% | 01/15/2028 | 11,665 | 10,332,287 | ||||||||||||
Altice France S.A. (France)(k) | 5.50% | 01/15/2028 | 4,994 | 4,080,252 | ||||||||||||
Altice France S.A. (France)(k) | 5.50% | 10/15/2029 | 4,322 | 3,277,823 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
15 | Invesco Floating Rate ESG Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Cable & Satellite Television–(continued) | ||||||||||||||||
Virgin Media Secured Finance PLC (United Kingdom)(k) | 4.50% | 08/15/2030 | $ | 6,819 | $ 5,966,625 | |||||||||||
25,543,799 | ||||||||||||||||
Chemicals & Plastics–0.82% | ||||||||||||||||
INEOS Finance PLC (Luxembourg) (k) | 7.50% | 04/15/2029 | 3,218 | 3,198,210 | ||||||||||||
INEOS Quattro Finance 2 PLC (United Kingdom)(k) | 9.63% | 03/15/2029 | 2,115 | 2,227,508 | ||||||||||||
SK Invictus Intermediate II S.a.r.l.(k) | 5.00% | 10/30/2029 | 12,324 | 10,475,913 | ||||||||||||
Windsor Holdings III LLC(k) | 8.50% | 06/15/2030 | 6,254 | 6,478,650 | ||||||||||||
22,380,281 | ||||||||||||||||
Ecological Services & Equipment–0.05% | ||||||||||||||||
GFL Environmental, Inc. (Canada) (k) | 6.75% | 01/15/2031 | 1,399 | 1,432,731 | ||||||||||||
Food Products–0.01% | ||||||||||||||||
Sigma Holdco B.V. (Netherlands) (k) | 7.88% | 05/15/2026 | 216 | 206,577 | ||||||||||||
Health Care–0.09% | ||||||||||||||||
Global Medical Response, Inc. (k) | 6.50% | 10/01/2025 | 2,829 | 2,485,743 | ||||||||||||
Industrial Equipment–0.56% | ||||||||||||||||
Chart Industries, Inc. (k) | 7.50% | 01/01/2030 | 5,405 | 5,582,073 | ||||||||||||
EMRLD Borrower L.P./Emerald Co-Issuer, Inc.(k) | 6.63% | 12/15/2030 | 9,808 | 9,854,588 | ||||||||||||
15,436,661 | ||||||||||||||||
Insurance–0.24% | ||||||||||||||||
Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer (k) | 7.00% | 01/15/2031 | 4,503 | 4,488,568 | ||||||||||||
HUB International Ltd.(k) | 7.25% | 06/15/2030 | 2,091 | 2,134,426 | ||||||||||||
6,622,994 | ||||||||||||||||
Lodging & Casinos–0.07% | ||||||||||||||||
Hilton Grand Vacations Borrower Escrow LLC/Hilton Grand Vacations Borrower Escrow, Inc. (k) | 6.63% | 01/15/2032 | 1,890 | 1,891,289 | ||||||||||||
Retailers (except Food & Drug)–0.10% | ||||||||||||||||
Evergreen Acqco 1 L.P./TVI, Inc. (k) | 9.75% | 04/26/2028 | 2,660 | 2,808,681 | ||||||||||||
Surface Transport–0.06% | ||||||||||||||||
First Student Bidco, Inc./First Transit Parent, Inc. (k) | 4.00% | 07/31/2029 | 1,850 | 1,612,062 | ||||||||||||
Telecommunications–0.62% | ||||||||||||||||
Connect Finco S.a.r.l./Connect US Finco LLC (United Kingdom) (k) | 6.75% | 10/01/2026 | 9,568 | 9,394,891 | ||||||||||||
Windstream Escrow LLC/Windstream Escrow Finance Corp.(k) | 7.75% | 08/15/2028 | 8,184 | 7,649,570 | ||||||||||||
17,044,461 | ||||||||||||||||
Utilities–0.08% | ||||||||||||||||
Calpine Corp. (k) | 4.50% | 02/15/2028 | 2,344 | 2,210,208 | ||||||||||||
Total U.S. Dollar Denominated Bonds & Notes (Cost $146,956,536) | 144,195,992 | |||||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes–3.66%(l) | ||||||||||||||||
Air Transport–0.01% | ||||||||||||||||
Skill Bidco ApS (Denmark) (3 mo. EURIBOR + 6.75%) (Acquired 06/14/2023; | 10.69% | 03/02/2028 | EUR | 195 | 217,528 | |||||||||||
Automotive–0.25% | ||||||||||||||||
Cabonline Group Holding AB (Sweden) (Acquired 10/13/2023; | 14.00% | 03/19/2026 | SEK | 9,385 | 950,918 | |||||||||||
Cabonline Group Holding AB (Sweden) (Acquired 03/24/2022; | 0.00% | 04/19/2026 | SEK | 36,287 | 3,229,171 | |||||||||||
Cabonline Group Holding AB (Sweden) (Acquired 10/12/2023; | 14.00% | 03/19/2026 | SEK | 18,769 | 1,786,093 | |||||||||||
Conceria Pasubio S.p.A. (Italy) (3 mo. EURIBOR + 4.50%)(k)(m) | 8.39% | 09/30/2028 | EUR | 917 | 986,391 | |||||||||||
6,952,573 | ||||||||||||||||
Building & Development–0.00% | ||||||||||||||||
Fagus Holdco PLC (United Kingdom) (Acquired 09/05/2023; Cost $0)(d)(g) | 1.00% | 09/05/2029 | EUR | 118 | 127,176 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
16 | Invesco Floating Rate ESG Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Cable & Satellite Television–0.19% | ||||||||||||||||
Altice Finco S.A. (Luxembourg)(k) | 4.75% | 01/15/2028 | EUR | 3,712 | $ 3,390,079 | |||||||||||
Altice France Holding S.A. (Luxembourg)(k) | 8.00% | 05/15/2027 | EUR | 2,923 | 1,824,649 | |||||||||||
5,214,728 | ||||||||||||||||
Electronics & Electrical–0.35% | ||||||||||||||||
Castor S.p.A. (Italy) (3 mo. EURIBOR + 5.25%)(k)(m) | 9.18% | 02/15/2029 | EUR | 4,000 | 4,199,434 | |||||||||||
Versuni Group B.V. (Netherlands)(k) | 3.13% | 06/15/2028 | EUR | 5,760 | 5,424,357 | |||||||||||
9,623,791 | ||||||||||||||||
Financial Intermediaries–1.49% | ||||||||||||||||
AnaCap Financial Europe S.A. SICAV-RAIF (Italy) (3 mo. EURIBOR + | 8.90% | 07/15/2030 | EUR | 7,201 | 4,920,076 | |||||||||||
Garfunkelux Holdco 3 S.A. (Luxembourg) (3 mo. EURIBOR + 6.25%)(k)(m) | 10.15% | 05/01/2026 | EUR | 1,945 | 1,658,731 | |||||||||||
Garfunkelux Holdco 3 S.A. (Luxembourg)(k) | 6.75% | 11/01/2025 | EUR | 6,615 | 5,638,265 | |||||||||||
Sherwood Financing PLC (United Kingdom)(k) | 6.00% | 11/15/2026 | GBP | 937 | 1,062,120 | |||||||||||
Sherwood Financing PLC (United Kingdom)(k) | 4.50% | 11/15/2026 | EUR | 968 | 974,271 | |||||||||||
Sherwood Financing PLC (United Kingdom) (3 mo. EURIBOR + 4.63%)(k)(m) | 8.53% | 11/15/2027 | EUR | 6,242 | 6,586,125 | |||||||||||
Sherwood Financing PLC (United Kingdom) (3 mo. EURIBOR + 4.63%)(k)(m) | 8.53% | 11/15/2027 | EUR | 7,750 | 8,177,261 | |||||||||||
Very Group Funding PLC (The) (United Kingdom)(k) | 6.50% | 08/01/2026 | GBP | 3,150 | 3,574,086 | |||||||||||
Very Group Funding PLC (The) (United Kingdom)(k) | 6.50% | 08/01/2026 | GBP | 7,141 | 8,102,397 | |||||||||||
40,693,332 | ||||||||||||||||
Food Products–0.39% | ||||||||||||||||
Sigma Holdco B.V. (Netherlands)(k) | 5.75% | 05/15/2026 | EUR | 3,000 | 3,072,983 | |||||||||||
Sigma Holdco B.V. (Netherlands)(k) | 5.75% | 05/15/2026 | EUR | 7,419 | 7,599,487 | |||||||||||
10,672,470 | ||||||||||||||||
Industrial Equipment–0.28% | ||||||||||||||||
Summer (BC) Holdco A S.a.r.l. (United Kingdom)(k) | 9.25% | 10/31/2027 | EUR | 7,256 | 7,747,845 | |||||||||||
Leisure Goods, Activities & Movies–0.04% | ||||||||||||||||
Deuce Finco PLC (United Kingdom)(k) | 5.50% | 06/15/2027 | GBP | 807 | 959,353 | |||||||||||
Retailers (except Food & Drug)–0.45% | ||||||||||||||||
Douglas Service GmbH (Germany)(k) | 6.00% | 04/08/2026 | EUR | 2,670 | 2,909,533 | |||||||||||
Kirk Beauty SUN GmbH ,9.00% PIK Rate, 8.25% Cash Rate (Germany)(h)(k) | 9.00% | 10/01/2026 | EUR | 7,251 | 7,951,887 | |||||||||||
Kirk Beauty SUN GmbH 9.00% PIK Rate, 8.25% Cash Rate (Germany)(h)(k) | 9.00% | 10/01/2026 | EUR | 1,397 | 1,532,148 | |||||||||||
12,393,568 | ||||||||||||||||
Surface Transport–0.21% | ||||||||||||||||
Windstream Services LLC (United Kingdom)(k) | 6.50% | 06/30/2027 | GBP | 846 | 842,310 | |||||||||||
Zenith Finco PLC (United Kingdom)(k) | 6.50% | 06/30/2027 | GBP | 4,906 | 4,884,604 | |||||||||||
5,726,914 | ||||||||||||||||
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $105,855,183) | 100,329,278 | |||||||||||||||
Shares | ||||||||||||||||
Common Stocks & Other Equity Interests–2.67%(n) | ||||||||||||||||
Aerospace & Defense–0.02% | ||||||||||||||||
IAP Worldwide Services | 134,337 | 134,337 | ||||||||||||||
IAP Worldwide Services, Class A | 838,949 | 453,032 | ||||||||||||||
IAP Worldwide Services, Inc. (Acquired 07/18/2014-08/18/2014; | 134 | 7 | ||||||||||||||
587,376 | ||||||||||||||||
Automotive–0.02% | ||||||||||||||||
Cabonline (Acquired 10/30/2023; Cost $10) (Sweden)(d)(g) | 10,996,102 | 1,066 | ||||||||||||||
Cabonline (Sweden)(d) | 9,384,746 | 457 | ||||||||||||||
Cabonline (Acquired 10/30/2023; Cost $280,511) (Sweden)(d)(g) | 312,441,524 | 406,888 | ||||||||||||||
Dayco Products LLC (Acquired 06/16/2006-05/29/2008; Cost $104,068)(d)(g) | 3,261 | 0 | ||||||||||||||
Dayco Products LLC (Acquired 06/16/2006-02/18/2014; Cost $1,275,974)(d)(g) | 3,266 | 0 | ||||||||||||||
408,411 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
17 | Invesco Floating Rate ESG Fund |
Shares | Value | |||||||||||||||
Building & Development–0.00% | ||||||||||||||||
Fagus Holdco PLC (Spain)(d) | 7,135 | $ 0 | ||||||||||||||
Lake at Las Vegas Joint Venture LLC, Class A (Acquired 04/28/2010-07/15/2010; | 518 | 0 | ||||||||||||||
Lake at Las Vegas Joint Venture LLC, Class B (Acquired 06/30/2010; | 4 | 0 | ||||||||||||||
Business Equipment & Services–0.93% | ||||||||||||||||
Monitronics International, Inc. (Acquired 06/30/2023; Cost $8,220,186)(g) | 408,355 | 8,677,544 | ||||||||||||||
My Alarm Center LLC, Class A (Acquired 03/09/2021-12/03/2021; | 68,686 | 16,824,589 | ||||||||||||||
25,502,133 | ||||||||||||||||
Chemicals & Plastics–0.00% | ||||||||||||||||
Flint Group (ColourOz Inv) (Germany)(d) | 35,089 | 0 | ||||||||||||||
Containers & Glass Products–0.01% | ||||||||||||||||
Libbey Glass LLC | 36,078 | 187,155 | ||||||||||||||
Electronics & Electrical–0.15% | ||||||||||||||||
Diebold Nixdorf, Inc.(p) | 124,443 | 4,101,641 | ||||||||||||||
Home Furnishings–0.10% | ||||||||||||||||
Serta Simmons Bedding LLC (Acquired 06/29/2023; Cost $56,360)(g) | 363,612 | 2,840,719 | ||||||||||||||
Industrial Equipment–0.00% | ||||||||||||||||
North American Lifting Holdings, Inc. | 7,347 | 18,599 | ||||||||||||||
Leisure Goods, Activities & Movies–0.27% | ||||||||||||||||
Crown Finance US, Inc. | 456,471 | 7,275,007 | ||||||||||||||
Crown Finance US, Inc. | 3,058 | 48,737 | ||||||||||||||
Vue International Bidco PLC (United Kingdom)(d) | 13,014,387 | 0 | ||||||||||||||
7,323,744 | ||||||||||||||||
Lodging & Casinos–0.03% | ||||||||||||||||
Caesars Entertainment, Inc.(p) | 19,983 | 868,661 | ||||||||||||||
Oil & Gas–0.89% | ||||||||||||||||
McDermott International Ltd. (Acquired 04/04/2018-05/10/2019; Cost $5,684,747)(g)(p) | 629,763 | 106,430 | ||||||||||||||
McDermott International Ltd. (Acquired 12/30/2020-09/08/2023; Cost $950,971)(d)(g) | 2,314,309 | 371,562 | ||||||||||||||
QuarterNorth Energy Holding, Inc. (Acquired 06/02/2021-10/29/2021; Cost $10,749,883)(g) | 131,162 | 22,603,607 | ||||||||||||||
QuarterNorth Energy Holding, Inc., Wts., expiring 08/27/2029 (Acquired 08/27/2021; Cost $411,759)(g) | 45,751 | 1,103,743 | ||||||||||||||
QuarterNorth Energy Holding, Inc., Wts., expiring 08/27/2029 (Acquired 08/27/2021; Cost $528,684)(g) | 88,114 | 181,735 | ||||||||||||||
Samson Investment Co., Class A (Acquired 03/01/2017; Cost $4,259,838)(d)(g) | 261,209 | 28,733 | ||||||||||||||
Southcross Energy Partners L.P. (Acquired 08/05/2014-10/29/2020; | 145,102 | 0 | ||||||||||||||
24,395,810 | ||||||||||||||||
Radio & Television–0.03% | ||||||||||||||||
iHeartMedia, Inc., Class A(p) | 306,089 | 847,866 | ||||||||||||||
iHeartMedia, Inc., Class B(d)(p) | 29 | 69 | ||||||||||||||
847,935 | ||||||||||||||||
Retailers (except Food & Drug)–0.01% | ||||||||||||||||
Claire’s Stores, Inc. | 692 | 181,650 | ||||||||||||||
Toys ’R’ Us-Delaware, Inc.(d) | 11 | 0 | ||||||||||||||
Vivarte S.A.S.U (France)(d) | 241,195 | 115,848 | ||||||||||||||
297,498 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
18 | Invesco Floating Rate ESG Fund |
Shares | Value | |||||||||||||||||
Surface Transport–0.12% | ||||||||||||||||||
Commercial Barge Line Co.(d) | 14,574 | $ | 1,637,389 | |||||||||||||||
| ||||||||||||||||||
Commercial Barge Line Co., Series B, Wts., expiring 04/30/2045(d) | 48,119 | 30,075 | ||||||||||||||||
| ||||||||||||||||||
Commercial Barge Line Co., Wts., expiring 04/27/2045(d) | 15,321 | 1,721,314 | ||||||||||||||||
| ||||||||||||||||||
Hurtigruten (Explorer II AS), Term Loan (Norway) | 808,820 | 0 | ||||||||||||||||
| ||||||||||||||||||
3,388,778 | ||||||||||||||||||
| ||||||||||||||||||
Telecommunications–0.09% | ||||||||||||||||||
Avaya Holdings Corp. (Acquired 05/01/2023; Cost $4,396,125)(g) | 293,075 | 1,978,403 | ||||||||||||||||
| ||||||||||||||||||
Avaya, Inc. (Acquired 05/01/2023; Cost $797,295)(g) | 53,153 | 358,809 | ||||||||||||||||
| ||||||||||||||||||
2,337,212 | ||||||||||||||||||
| ||||||||||||||||||
Total Common Stocks & Other Equity Interests (Cost $91,909,054) | 73,105,672 | |||||||||||||||||
| ||||||||||||||||||
Preferred Stocks–0.51%(n) | ||||||||||||||||||
Oil & Gas–0.01% | ||||||||||||||||||
McDermott International Ltd., Pfd.(d) | 1,787 | 357,481 | ||||||||||||||||
| ||||||||||||||||||
Southcross Energy Partners L.P., Series A, Pfd. (Acquired 05/07/2019-08/23/2019; Cost $566,509)(d)(g) | 577,315 | 3,406 | ||||||||||||||||
| ||||||||||||||||||
360,887 | ||||||||||||||||||
| ||||||||||||||||||
Surface Transport–0.50% | ||||||||||||||||||
Commercial Barge Line Co., Series B, Pfd.(d) | 68,517 | 7,983,601 | ||||||||||||||||
| ||||||||||||||||||
Commercial Barge Line Co., Series B, Pfd., Wts., expiring 04/27/2045(d) | 48,119 | 5,606,826 | ||||||||||||||||
| ||||||||||||||||||
13,590,427 | ||||||||||||||||||
| ||||||||||||||||||
Total Preferred Stocks (Cost $3,267,836) | 13,951,314 | |||||||||||||||||
| ||||||||||||||||||
Interest Rate | Maturity Date | Principal Amount (000) | ||||||||||||||||
Municipal Obligations–0.45% | ||||||||||||||||||
Arizona–0.45% | ||||||||||||||||||
Arizona (State of) Industrial Development Authority (NewLife Forest Restoration LLC) | 0.00% | 01/01/2028 | $ | 16,055 | 12,430,077 | |||||||||||||
| ||||||||||||||||||
Shares | ||||||||||||||||||
Money Market Funds–2.42% | ||||||||||||||||||
Invesco Government & Agency Portfolio,Institutional Class, 5.24%(o)(q) | 23,168,978 | 23,168,978 | ||||||||||||||||
| ||||||||||||||||||
Invesco Liquid Assets Portfolio,Institutional Class, 5.41%(o)(q) | 16,553,583 | 16,561,860 | ||||||||||||||||
| ||||||||||||||||||
Invesco Treasury Portfolio,Institutional Class, 5.23%(o)(q) | 26,478,833 | 26,478,833 | ||||||||||||||||
| ||||||||||||||||||
Total Money Market Funds (Cost $66,210,112) | 66,209,671 | |||||||||||||||||
| ||||||||||||||||||
TOTAL INVESTMENTS IN SECURITIES–100.71% (Cost $2,877,939,420) | 2,759,731,987 | |||||||||||||||||
| ||||||||||||||||||
OTHER ASSETS LESS LIABILITIES–(0.71)% | (19,527,789 | ) | ||||||||||||||||
| ||||||||||||||||||
NET ASSETS–100.00% | $ | 2,740,204,198 | ||||||||||||||||
|
Investment Abbreviations:
EUR | - Euro | |
EURIBOR | - Euro Interbank Offered Rate | |
GBP | - British Pound Sterling | |
LIBOR | - London Interbank Offered Rate | |
LOC | - Letter of Credit | |
Pfd. | - Preferred | |
PIK | - Pay-in-Kind | |
RB | - Revenue Bonds | |
SEK | - Swedish Krona | |
SOFR | - Secured Overnight Financing Rate | |
SONIA | - Sterling Overnight Index Average | |
USD | - U.S. Dollar | |
Wts. | - Warrants |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
19 | Invesco Floating Rate ESG Fund |
Notes to Consolidated Schedule of Investments:
(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 Secured Overnight Financing Rate (“SOFR”), 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. Interest rate will be determined at the time of funding. See Note 8. |
(f) | This variable rate interest will settle after February 29, 2024, at which time the interest rate will be determined. |
(g) | Restricted security. The aggregate value of these securities at February 29, 2024 was $180,408,132, which represented 6.58% of the Fund’s Net Assets. |
(h) | All or a portion of this security is Pay-in-Kind. Pay-in-Kind securities pay interest income in the form of securities. |
(i) | Acquired as part of a bankruptcy restructuring. |
(j) | Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The aggregate value of these securities at February 29, 2024 was $55,864,056, which represented 1.80% of the Fund’s Net Assets. |
(k) | 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 29, 2024 was $256,828,171, which represented 9.37% of the Fund’s Net Assets. |
(l) | Foreign denominated security. Principal amount is denominated in the currency indicated. |
(m) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 29, 2024. |
(n) | Securities acquired through the restructuring of senior loans. |
(o) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 29, 2024. |
Value August 31, 2023 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value February 29, 2024 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ 39,229,510 | $149,296,294 | $(165,356,826 | ) | $ - | $ - | $23,168,978 | $ 934,692 | ||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 28,018,843 | 106,640,209 | (118,112,017 | ) | (252 | ) | 15,077 | 16,561,860 | 742,421 | |||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 44,833,726 | 170,624,336 | (188,979,229 | ) | - | - | 26,478,833 | 1,149,561 | ||||||||||||||||||||
Investments in Other Affiliates: | ||||||||||||||||||||||||||||
My Alarm Center LLC, Class A | 16,635,703 | - | - | 188,886 | - | 16,824,589 | - | |||||||||||||||||||||
Total | $128,717,782 | $426,560,839 | $(472,448,072 | ) | $188,634 | $15,077 | $83,034,260 | $2,826,674 |
(p) | Non-income producing security. |
(q) | The rate shown is the 7-day SEC standardized yield as of February 29, 2024. |
Open Forward Foreign Currency Contracts | ||||||||||||||||||||||
Settlement | Contract to | Unrealized Appreciation | ||||||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||||
Currency Risk | ||||||||||||||||||||||
03/27/2024 | Barclays Capital PLC | EUR | 67,988,148 | USD | 74,311,386 | $ | 761,359 | |||||||||||||||
| ||||||||||||||||||||||
03/27/2024 | BNP Paribas S.A. | GBP | 8,615,127 | USD | 10,982,210 | 105,849 | ||||||||||||||||
| ||||||||||||||||||||||
03/27/2024 | BNP Paribas S.A. | USD | 5,425 | SEK | 56,975 | 77 | ||||||||||||||||
| ||||||||||||||||||||||
04/26/2024 | BNP Paribas S.A. | GBP | 7,945,127 | USD | 10,064,520 | 32,267 | ||||||||||||||||
| ||||||||||||||||||||||
04/26/2024 | BNP Paribas S.A. | SEK | 66,966,509 | USD | 6,493,074 | 19,042 | ||||||||||||||||
| ||||||||||||||||||||||
03/27/2024 | Canadian Imperial Bank of Commerce | EUR | 69,018,272 | USD | 75,297,554 | 633,133 | ||||||||||||||||
| ||||||||||||||||||||||
04/26/2024 | Canadian Imperial Bank of Commerce | EUR | 69,560,940 | USD | 75,367,609 | 23,657 | ||||||||||||||||
| ||||||||||||||||||||||
03/27/2024 | J.P. Morgan Chase Bank, N.A. | EUR | 5,526,604 | USD | 5,985,328 | 6,611 | ||||||||||||||||
| ||||||||||||||||||||||
04/26/2024 | Merrill Lynch International | EUR | 3,733 | USD | 4,048 | 5 | ||||||||||||||||
| ||||||||||||||||||||||
03/27/2024 | Morgan Stanley and Co. International PLC | GBP | 8,486,544 | USD | 10,821,849 | 107,821 | ||||||||||||||||
| ||||||||||||||||||||||
03/27/2024 | Morgan Stanley and Co. International PLC | USD | 5,929,887 | EUR | 5,500,000 | 20,049 | ||||||||||||||||
| ||||||||||||||||||||||
04/26/2024 | Morgan Stanley and Co. International PLC | EUR | 68,522,717 | USD | 74,352,211 | 132,797 | ||||||||||||||||
| ||||||||||||||||||||||
04/26/2024 | Morgan Stanley and Co. International PLC | GBP | 7,850,613 | USD | 9,941,591 | 28,680 | ||||||||||||||||
| ||||||||||||||||||||||
03/27/2024 | Royal Bank of Canada | EUR | 69,018,272 | USD | 75,414,885 | 750,464 | ||||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
20 | Invesco Floating Rate ESG Fund |
Open Forward Foreign Currency Contracts–(continued) | ||||||||||||||||||
Settlement | Contract to | Unrealized Appreciation | ||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||
03/27/2024 | Royal Bank of Canada | GBP | 8,615,127 | USD | 10,990,990 | $ | 114,628 | |||||||||||
| ||||||||||||||||||
03/27/2024 | State Street Bank & Trust Co. | EUR | 1,011,274 | USD | 1,104,843 | 10,839 | ||||||||||||
| ||||||||||||||||||
04/26/2024 | State Street Bank & Trust Co. | EUR | 69,560,940 | USD | 75,451,221 | 107,270 | ||||||||||||
| ||||||||||||||||||
04/26/2024 | State Street Bank & Trust Co. | GBP | 8,292,715 | USD | 10,503,364 | 32,214 | ||||||||||||
| ||||||||||||||||||
Subtotal–Appreciation | 2,886,762 | |||||||||||||||||
| ||||||||||||||||||
Currency Risk | ||||||||||||||||||
03/27/2024 | BNP Paribas S.A. | SEK | 66,575,015 | USD | 6,416,613 | (11,764 | ) | |||||||||||
| ||||||||||||||||||
03/27/2024 | BNP Paribas S.A. | USD | 4,896,651 | EUR | 4,516,628 | (10,533 | ) | |||||||||||
| ||||||||||||||||||
03/27/2024 | BNP Paribas S.A. | USD | 10,062,608 | GBP | 7,945,127 | (32,103 | ) | |||||||||||
| ||||||||||||||||||
03/27/2024 | BNP Paribas S.A. | USD | 6,441,630 | SEK | 66,518,040 | (18,755 | ) | |||||||||||
| ||||||||||||||||||
03/27/2024 | Canadian Imperial Bank of Commerce | USD | 75,271,893 | EUR | 69,560,940 | (20,410 | ) | |||||||||||
| ||||||||||||||||||
03/27/2024 | Deutsche Bank AG | USD | 2,528,161 | GBP | 2,000,000 | (3,216 | ) | |||||||||||
| ||||||||||||||||||
04/26/2024 | J.P. Morgan Chase Bank, N.A. | USD | 52,809 | SEK | 543,479 | (268 | ) | |||||||||||
| ||||||||||||||||||
03/27/2024 | Merrill Lynch International | EUR | 3,000,000 | USD | 3,221,233 | (24,187 | ) | |||||||||||
| ||||||||||||||||||
03/27/2024 | Morgan Stanley and Co. International PLC | USD | 74,258,068 | EUR | 68,522,717 | (129,742 | ) | |||||||||||
| ||||||||||||||||||
03/27/2024 | Morgan Stanley and Co. International PLC | USD | 9,909,288 | GBP | 7,826,543 | (28,492 | ) | |||||||||||
| ||||||||||||||||||
03/27/2024 | State Street Bank & Trust Co. | EUR | 2,098,653 | USD | 2,260,327 | (10,009 | ) | |||||||||||
| ||||||||||||||||||
03/27/2024 | State Street Bank & Trust Co. | USD | 75,355,366 | EUR | 69,560,940 | (103,883 | ) | |||||||||||
| ||||||||||||||||||
03/27/2024 | State Street Bank & Trust Co. | USD | 10,061,790 | GBP | 7,945,127 | (31,285 | ) | |||||||||||
| ||||||||||||||||||
Subtotal–Depreciation | (424,647 | ) | ||||||||||||||||
| ||||||||||||||||||
Total Forward Foreign Currency Contracts | $ | 2,462,115 | ||||||||||||||||
|
Abbreviations: | ||
EUR – Euro | ||
GBP – British Pound Sterling | ||
SEK – Swedish Krona | ||
USD – U.S. Dollar |
Portfolio Composition† * | ||||
By credit quality, based on total investments as of February 29, 2024
| ||||
BBB- | 1.71 | % | ||
BB+ | 2.72 | |||
BB | 9.76 | |||
BB- | 8.91 | |||
B+ | 13.74 | |||
B | 19.21 | |||
B- | 16.09 | |||
CCC+ | 7.28 | |||
CCC | 3.04 | |||
CCC- | 0.25 | |||
CC | 0.32 | |||
D | 0.85 | |||
Non-Rated | 12.90 | |||
Equity | 3.22 |
†Source: | S&P Global Ratings. A credit rating is an assessment provided by a nationally recognized statistical rating organization 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 S&P Global Ratings’ rating methodology, please visit spglobal.com and select “Understanding Credit Ratings” under About Ratings on the homepage. |
* | Excluding money market fund holdings, if any. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
21 | Invesco Floating Rate ESG Fund |
Consolidated Statement of Assets and Liabilities
February 29, 2024
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value | $ | 2,676,697,727 | ||
| ||||
Investments in affiliates, at value | 83,034,260 | |||
| ||||
Other investments: | ||||
Unrealized appreciation on forward foreign currency contracts outstanding | 2,886,762 | |||
| ||||
Cash collateral – revolver | 295,130 | |||
| ||||
Cash | 24,036,010 | |||
| ||||
Restricted cash | 24,750,688 | |||
| ||||
Foreign currencies, at value (Cost $6,448,802) | 6,467,212 | |||
| ||||
Receivable for: | ||||
Investments sold | 32,885,019 | |||
| ||||
Fund shares sold | 4,906,034 | |||
| ||||
Dividends | 428,605 | |||
| ||||
Interest | 26,134,764 | |||
| ||||
Investments matured, at value (Cost $166,360) | 68,208 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 135,996 | |||
| ||||
Other assets | 955,209 | |||
| ||||
Total assets | 2,883,681,624 | |||
| ||||
Liabilities: | ||||
Other investments: | ||||
Unrealized depreciation on forward foreign currency contracts outstanding | 424,647 | |||
| ||||
Payable for: | ||||
Investments purchased | 74,130,507 | |||
| ||||
Dividends | 6,685,858 | |||
| ||||
Proceeds received in connection with pending litigation | 24,750,688 | |||
| ||||
Fund shares reacquired | 6,903,847 | |||
| ||||
Accrued fees to affiliates | 712,025 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 2,049 | |||
| ||||
Accrued other operating expenses | 300,028 | |||
| ||||
Trustee deferred compensation and retirement plans | 148,785 | |||
| ||||
Unfunded loan commitments | 29,418,992 | |||
| ||||
Total liabilities | 143,477,426 | |||
| ||||
Net assets applicable to shares outstanding | $ | 2,740,204,198 | ||
|
Net assets consist of: | ||||
Shares of beneficial interest | $ | 3,300,145,546 | ||
| ||||
Distributable earnings (loss) | (559,941,348 | ) | ||
| ||||
$ | 2,740,204,198 | |||
| ||||
Net Assets: | ||||
Class A | $ | 713,570,708 | ||
| ||||
Class C | $ | 76,756,823 | ||
| ||||
Class R | $ | 8,425,944 | ||
| ||||
Class Y | $ | 1,341,424,990 | ||
| ||||
Class R5 | $ | 6,524,168 | ||
| ||||
Class R6 | $ | 593,501,565 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 104,634,149 | |||
| ||||
Class C | 11,304,100 | |||
| ||||
Class R | 1,231,078 | |||
| ||||
Class Y | 196,948,234 | |||
| ||||
Class R5 | 956,460 | |||
| ||||
Class R6 | 87,217,369 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 6.82 | ||
| ||||
Maximum offering price per share | $ | 6.99 | ||
| ||||
Class C: | ||||
| ||||
Net asset value and offering price per share | $ | 6.79 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 6.84 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 6.81 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 6.82 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 6.80 | ||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
22 | Invesco Floating Rate ESG Fund |
Consolidated Statement of Operations
For the six months ended February 29, 2024
(Unaudited)
Investment income: | ||||
Interest | $ | 134,946,361 | ||
| ||||
Dividends | 228,197 | |||
| ||||
Dividends from affiliated money market funds | 2,826,674 | |||
| ||||
Total investment income | 138,001,232 | |||
| ||||
Expenses: | ||||
Advisory fees | 8,335,996 | |||
| ||||
Administrative services fees | 191,296 | |||
| ||||
Custodian fees | 147,055 | |||
| ||||
Distribution fees: | ||||
Class A | 867,046 | |||
| ||||
Class C | 294,304 | |||
| ||||
Class R | 20,436 | |||
| ||||
Interest, facilities and maintenance fees | 702,472 | |||
| ||||
Transfer agent fees – A, C, R & Y | 1,038,883 | |||
| ||||
Transfer agent fees – R5 | 2,631 | |||
| ||||
Transfer agent fees – R6 | 83,898 | |||
| ||||
Trustees’ and officers’ fees and benefits | 24,670 | |||
| ||||
Registration and filing fees | 77,957 | |||
| ||||
Reports to shareholders | 310,935 | |||
| ||||
Professional services fees | 97,350 | |||
| ||||
Other | 90,447 | |||
| ||||
Total expenses | 12,285,376 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (64,884 | ) | ||
| ||||
Net expenses | 12,220,492 | |||
| ||||
Net investment income | 125,780,740 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | (24,804,030 | ) | ||
| ||||
Affiliated investment securities | 15,077 | |||
| ||||
Foreign currencies | (1,376,625 | ) | ||
| ||||
Forward foreign currency contracts | 5,742,142 | |||
| ||||
(20,423,436 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | 25,397,677 | |||
| ||||
Affiliated investment securities | 188,634 | |||
| ||||
Foreign currencies | 584,292 | |||
| ||||
Forward foreign currency contracts | (3,663,030 | ) | ||
| ||||
22,507,573 | ||||
| ||||
Net realized and unrealized gain | 2,084,137 | |||
| ||||
Net increase in net assets resulting from operations | $ | 127,864,877 | ||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
23 | Invesco Floating Rate ESG Fund |
Consolidated Statement of Changes in Net Assets
For the six months ended February 29, 2024 and the year ended August 31, 2023
(Unaudited)
February 29, | August 31, | |||||||
2024 | 2023 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 125,780,740 | $ | 276,085,800 | ||||
| ||||||||
Net realized gain (loss) | (20,423,436 | ) | (167,175,027 | ) | ||||
| ||||||||
Change in net unrealized appreciation | 22,507,573 | 115,255,269 | ||||||
| ||||||||
Net increase in net assets resulting from operations | 127,864,877 | 224,166,042 | ||||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (32,759,188 | ) | (63,774,464 | ) | ||||
| ||||||||
Class C | (3,502,862 | ) | (8,150,210 | ) | ||||
| ||||||||
Class R | (375,517 | ) | (758,648 | ) | ||||
| ||||||||
Class Y | (67,130,296 | ) | (185,426,658 | ) | ||||
| ||||||||
Class R5 | (255,907 | ) | (460,233 | ) | ||||
| ||||||||
Class R6 | (27,544,484 | ) | (47,750,970 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (131,568,254 | ) | (306,321,183 | ) | ||||
| ||||||||
Return of capital: | ||||||||
Class A | – | (951,906 | ) | |||||
| ||||||||
Class C | – | (121,651 | ) | |||||
| ||||||||
Class R | —(11,324) | |||||||
| ||||||||
Class Y | – | (2,767,703 | ) | |||||
| ||||||||
Class R5 | – | (6,869 | ) | |||||
| ||||||||
Class R6 | – | (712,737 | ) | |||||
| ||||||||
Total return of capital | – | (4,572,190 | ) | |||||
| ||||||||
Total distributions | (131,568,254 | ) | (310,893,373 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | 45,771,448 | (69,943,883 | ) | |||||
| ||||||||
Class C | (4,399,467 | ) | (20,512,197 | ) | ||||
| ||||||||
Class R | 192,573 | 181,202 | ||||||
| ||||||||
Class Y | (148,015,707 | ) | (1,143,228,885 | ) | ||||
| ||||||||
Class R5 | 1,683,275 | 156,668 | ||||||
| ||||||||
Class R6 | 41,645,300 | 14,039,460 | ||||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (63,122,578 | ) | (1,219,307,635 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (66,825,955 | ) | (1,306,034,966 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 2,807,030,153 | 4,113,065,119 | ||||||
| ||||||||
End of period | $ | 2,740,204,198 | $ | 2,807,030,153 | ||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
24 | Invesco Floating Rate ESG Fund |
Consolidated Financial Highlights
(Unaudited)
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 | Return of capital | Total distributions | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of net assets | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Supplemental ratio of expenses to average net assets with fee waivers | Ratio of net to average | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | $6.83 | $0.30 | $ | 0.01 | $ | 0.31 | $ | (0.32 | ) | $ | – | $ | (0.32 | ) | $ | 6.82 | 4.63 | % | $ | 713,571 | 1.08 | %(d)(e) | 1.08 | %(d)(e) | 1.03 | %(d) | 9.00 | %(d) | 24 | % | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 6.95 | 0.58 | (0.05 | ) | 0.53 | (0.64 | ) | (0.01 | ) | (0.65 | ) | 6.83 | 8.20 | 668,557 | 1.10 | (e) | 1.10 | (e) | 1.05 | 8.57 | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 7.35 | 0.29 | (0.39 | ) | (0.10 | ) | (0.30 | ) | – | (0.30 | ) | 6.95 | (1.44 | ) | 751,871 | 1.04 | (e) | 1.05 | (e) | 1.01 | 4.13 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 6.94 | 0.25 | 0.43 | 0.68 | (0.27 | ) | – | (0.27 | ) | 7.35 | 9.89 | 585,690 | 1.05 | (e) | 1.05 | (e) | 1.00 | 3.45 | 76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 7.40 | 0.30 | (0.40 | ) | (0.10 | ) | (0.32 | ) | (0.04 | ) | (0.36 | ) | 6.94 | (1.33 | ) | 428,277 | 1.07 | (e) | 1.08 | (e) | 1.00 | 4.33 | 55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 7.57 | 0.35 | (0.17 | ) | 0.18 | (0.35 | ) | – | (0.35 | ) | 7.40 | 2.50 | 539,003 | 1.08 | (e) | 1.08 | (e) | 1.03 | 4.71 | 55 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 6.80 | 0.29 | 0.00 | 0.29 | (0.30 | ) | – | (0.30 | ) | 6.79 | 4.37 | 76,757 | 1.58 | (d)(e) | 1.58 | (d)(e) | 1.53 | (d) | 8.50 | (d) | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 6.92 | 0.54 | (0.04 | ) | 0.50 | (0.61 | ) | (0.01 | ) | (0.62 | ) | 6.80 | 7.66 | 81,271 | 1.60 | (e) | 1.60 | (e) | 1.55 | 8.07 | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 7.32 | 0.26 | (0.40 | ) | (0.14 | ) | (0.26 | ) | – | (0.26 | ) | 6.92 | (1.96 | ) | 103,807 | 1.54 | (e) | 1.55 | (e) | 1.51 | 3.63 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 6.91 | 0.21 | 0.43 | 0.64 | (0.23 | ) | – | (0.23 | ) | 7.32 | 9.37 | 91,555 | 1.55 | (e) | 1.55 | (e) | 1.50 | 2.95 | 76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 7.37 | 0.27 | (0.41 | ) | (0.14 | ) | (0.28 | ) | (0.04 | ) | (0.32 | ) | 6.91 | (1.84 | ) | 111,318 | 1.57 | (e) | 1.58 | (e) | 1.50 | 3.83 | 55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 7.53 | 0.31 | (0.16 | ) | 0.15 | (0.31 | ) | – | (0.31 | ) | 7.37 | 2.12 | 213,446 | 1.58 | (e) | 1.58 | (e) | 1.53 | 4.21 | 55 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 6.84 | 0.30 | 0.01 | 0.31 | (0.31 | ) | – | (0.31 | ) | 6.84 | 4.66 | 8,426 | 1.33 | (d)(e) | 1.33 | (d)(e) | 1.28 | (d) | 8.75 | (d) | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 6.98 | 0.56 | (0.06 | ) | 0.50 | (0.63 | ) | (0.01 | ) | (0.64 | ) | 6.84 | 7.63 | 8,225 | 1.35 | (e) | 1.35 | (e) | 1.30 | 8.32 | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 7.36 | 0.28 | (0.38 | ) | (0.10 | ) | (0.28 | ) | – | (0.28 | ) | 6.98 | (1.40 | ) | 8,208 | 1.29 | (e) | 1.30 | (e) | 1.26 | 3.88 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 6.95 | 0.23 | 0.43 | 0.66 | (0.25 | ) | – | (0.25 | ) | 7.36 | 9.61 | 6,076 | 1.30 | (e) | 1.30 | (e) | 1.25 | 3.20 | 76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 7.41 | 0.29 | (0.41 | ) | (0.12 | ) | (0.30 | ) | (0.04 | ) | (0.34 | ) | 6.95 | (1.57 | ) | 4,874 | 1.32 | (e) | 1.33 | (e) | 1.25 | 4.08 | 55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 7.58 | 0.33 | (0.16 | ) | 0.17 | (0.34 | ) | – | (0.34 | ) | 7.41 | 2.25 | 5,604 | 1.33 | (e) | 1.33 | (e) | 1.28 | 4.46 | 55 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 6.82 | 0.31 | 0.01 | 0.32 | (0.33 | ) | – | (0.33 | ) | 6.81 | 4.76 | 1,341,425 | 0.83 | (d)(e) | 0.83 | (d)(e) | 0.78 | (d) | 9.25 | (d) | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 6.94 | 0.60 | (0.05 | ) | 0.55 | (0.66 | ) | (0.01 | ) | (0.67 | ) | 6.82 | 8.46 | 1,491,738 | 0.85 | (e) | 0.85 | (e) | 0.80 | 8.82 | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 7.34 | 0.31 | (0.40 | ) | (0.09 | ) | (0.31 | ) | – | (0.31 | ) | 6.94 | (1.20 | ) | 2,696,320 | 0.79 | (e) | 0.80 | (e) | 0.76 | 4.38 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 6.93 | 0.27 | 0.42 | 0.69 | (0.28 | ) | – | (0.28 | ) | 7.34 | 10.18 | 1,232,463 | 0.80 | (e) | 0.80 | (e) | 0.75 | 3.70 | 76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 7.39 | 0.32 | (0.40 | ) | (0.08 | ) | (0.34 | ) | (0.04 | ) | (0.38 | ) | 6.93 | (1.09 | ) | 350,943 | 0.82 | (e) | 0.83 | (e) | 0.75 | 4.58 | 55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 7.56 | 0.37 | (0.17 | ) | 0.20 | (0.37 | ) | – | (0.37 | ) | 7.39 | 2.76 | 592,107 | 0.83 | (e) | 0.83 | (e) | 0.78 | 4.96 | 55 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 6.83 | 0.31 | 0.01 | 0.32 | (0.33 | ) | – | (0.33 | ) | 6.82 | 4.76 | 6,524 | 0.83 | (d)(e) | 0.83 | (d)(e) | 0.78 | (d) | 9.25 | (d) | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 6.95 | 0.60 | (0.05 | ) | 0.55 | (0.66 | ) | (0.01 | ) | (0.67 | ) | 6.83 | 8.50 | 4,846 | 0.82 | (e) | 0.82 | (e) | 0.77 | 8.85 | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 7.35 | 0.31 | (0.39 | ) | (0.08 | ) | (0.32 | ) | – | (0.32 | ) | 6.95 | (1.18 | ) | 4,762 | 0.77 | (e) | 0.78 | (e) | 0.74 | 4.40 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 6.94 | 0.27 | 0.43 | 0.70 | (0.29 | ) | – | (0.29 | ) | 7.35 | 10.23 | 3,631 | 0.77 | (e) | 0.77 | (e) | 0.72 | 3.73 | 76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 7.41 | 0.32 | (0.41 | ) | (0.09 | ) | (0.34 | ) | (0.04 | ) | (0.38 | ) | 6.94 | (1.21 | ) | 5,515 | 0.81 | (e) | 0.82 | (e) | 0.74 | 4.59 | 55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 7.58 | 0.37 | (0.16 | ) | 0.21 | (0.38 | ) | – | (0.38 | ) | 7.41 | 2.80 | 5,672 | 0.83 | (e) | 0.83 | (e) | 0.78 | 4.96 | 55 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 6.81 | 0.31 | 0.01 | 0.32 | (0.33 | ) | – | (0.33 | ) | 6.80 | 4.80 | 593,502 | 0.76 | (d)(e) | 0.76 | (d)(e) | 0.71 | (d) | 9.32 | (d) | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 6.93 | 0.60 | (0.05 | ) | 0.55 | (0.66 | ) | (0.01 | ) | (0.67 | ) | 6.81 | 8.57 | 552,394 | 0.75 | (e) | 0.75 | (e) | 0.70 | 8.92 | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 7.33 | 0.32 | (0.40 | ) | (0.08 | ) | (0.32 | ) | – | (0.32 | ) | 6.93 | (1.13 | ) | 548,097 | 0.70 | (e) | 0.71 | (e) | 0.67 | 4.47 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 6.93 | 0.27 | 0.42 | 0.69 | (0.29 | ) | – | (0.29 | ) | 7.33 | 10.10 | 484,494 | 0.73 | (e) | 0.73 | (e) | 0.68 | 3.77 | 76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 7.39 | 0.33 | (0.41 | ) | (0.08 | ) | (0.34 | ) | (0.04 | ) | (0.38 | ) | 6.93 | (0.99 | ) | 652,453 | 0.71 | (e) | 0.72 | (e) | 0.64 | 4.69 | 55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 7.56 | 0.38 | (0.17 | ) | 0.21 | (0.38 | ) | – | (0.38 | ) | 7.39 | 2.86 | 812,446 | 0.74 | (e) | 0.74 | (e) | 0.69 | 5.05 | 55 |
(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) | Annualized. |
(e) | Ratio includes line of credit expense of 0.05%, 0.05%, 0.03%, 0.05%, 0.07%, and 0.05% for the six months ended February 29, 2024 and the years ended August 31, 2023, 2022, 2021, 2020, and 2019, respectively. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
25 | Invesco Floating Rate ESG Fund |
Notes to Consolidated Financial Statements
February 29, 2024
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Floating Rate ESG 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. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund may also invest a portion of its assets indirectly through a wholly-owned subsidiary, Invesco Floating Rate ESG TB, LLC, a Delaware limited liability series company (the “Subsidiary”), which formed a separate registered series. The Fund owns all beneficial and economic interests in the Subsidiary and the Subsidiary’s registered series. The accompanying consolidated financial statements reflect the financial position of the Fund, the Subsidiary and the Subsidiary’s registered series and the results of operations on a consolidated basis.
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. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
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 consolidated 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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market (but not securities reported on the NASDAQ Stock Exchange) are valued based on the prices furnished by independent pricing services, in which case the securities 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 daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices 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, and their value may be adjusted accordingly. 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 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.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). 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 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.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
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 mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
26 | Invesco Floating Rate ESG Fund |
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
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 an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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. Facility fees received may be amortized over the life of the loan. 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 Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
The Fund is a party to legal proceedings in connection with certain of its portfolio investments, in which it may be plaintiff or defendant. The outcome and financial effect, if any, of these legal proceedings cannot be determined at this time because the proceedings are ongoing and have not been adjudicated. The Fund received a cash payment of $24,750,688 from the issuer of one of its portfolio investments (Robertshaw US Holding Corp.), the status of which is subject to such an ongoing litigation. Consequently, the Fund continues to recognize its investments in the various Robertshaw Term Loans in the Consolidated Schedule of Investments and has recorded the cash received as restricted cash and an offsetting liability proceeds received in connection with pending litigation for such cash proceeds received in the Consolidated Statement of Assets and Liabilities.
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 Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated 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 Consolidated Statement of Operations and the Consolidated 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 Consolidated 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 Consolidated 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, 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. The Subsidiary is treated as a corporation for U.S. federal income tax purposes and generally is subject to U.S. federal and state income tax on its taxable income. |
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 based on relative net assets of Class R5 and Class R6. 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 the relative value of settled shares. |
G. | Interest, Facilities and Maintenance Fees – Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees, administrative expenses, negative or overdrawn balances on margin accounts and other expenses associated with establishing and maintaining a line of credit. |
H. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America |
27 | Invesco Floating Rate ESG Fund |
(“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 consolidated 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 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. | Securities Purchased on a When-Issued and Delayed Delivery Basis – The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date. |
K. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at 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 Consolidated 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 Consolidated Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Consolidated Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
L. | 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 exchange of the two currencies on the settlement date, 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).
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 for hedging 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 Consolidated 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 Consolidated Statement of Assets and Liabilities.
M. | 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. |
N. | 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. |
O. | LIBOR Transition Risk – The Fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations. LIBOR was intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured basis. The UK Financial Conduct Authority (“FCA”), the regulator that oversees LIBOR, announced that the majority of LIBOR rates would cease to be published or would no longer be representative on January 1, 2022. The publication of most LIBOR rates ceased at the end of 2021, and the remaining USD LIBOR rates ceased to be published after June 2023. The FCA will permit the use of synthetic USD LIBOR rates for non-U.S. contracts for a limited period of time after June 30, 2023, but any such rates would be considered non-representative of the underlying market. |
There remains uncertainty and risks relating to the continuing LIBOR transition and its effects on the Fund and the instruments in which the Fund invests. There can be no assurance that the composition or characteristics of any alternative reference rates (“ARRs”) or financial instruments in which the Fund invests that utilize ARRs will be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity.
28 | Invesco Floating Rate ESG Fund |
Additionally, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments when USD LIBOR is ultimately discontinued. On December 16, 2022, the Federal Reserve Board adopted regulations implementing the Adjustable Interest Rate Act. The regulations provide a statutory fallback mechanism to replace LIBOR, by identifying benchmark rates based on the Secured Overnight Financing Rate (“SOFR”) that replaced LIBOR in certain financial contracts after June 30, 2023. These regulations apply only to contracts governed by U.S. law, among other limitations. The Fund may have instruments linked to other interbank offered rates that may also cease to be published in the future. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held by the Fund could result in losses to the Fund.
P. | 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. |
Q. | 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. or non-U.S. companies (the “Borrowers”). The investment of the Fund in a corporate loan may take the form of participation interests or assignments. If the Fund purchases a participation interest from a syndicate of lenders (“Lenders”) or one of the participants in the syndicate (“Participant”), one or more of which administers the loan on behalf of all the Lenders (the “Agent Bank”), the Fund would be required to rely on the Lender that sold the participation interest not only for the enforcement of the Fund’s rights against the Borrower but also for the receipt and processing of payments due to the Fund under the corporate loans. As such, the Fund is subject to the credit risk of the Borrower and the Participant. Lenders and Participants interposed between the Fund and a Borrower, together with Agent Banks, are referred to as “Intermediate Participants”.
Because the Fund evaluates environmental, social and governance (“ESG”) factors to assess and exclude certain investments for non-financial reasons, it may forego some market opportunities available to funds that do not use these factors. The securities of issuers that score favorably under the Fund’s ESG scoring methodology may underperform similar issuers that do not score as well or may underperform the market as a whole. As a result, the Fund may underperform funds that do not screen or score issuers based on ESG factors or funds that use a different ESG methodology. Information used by the Fund to evaluate such factors may not be readily available, complete or accurate, which could negatively impact the Fund’s ability to apply its methodology, which in turn could negatively impact the Fund’s performance. In addition, the Fund’s assessment of an issuer, based on the issuer’s level of involvement in a particular industry or the issuer’s ESG score, may differ from that of other funds or an investor. As a result, the issuers deemed eligible for inclusion in the Fund’s portfolio may not reflect the beliefs or values of any particular investor and may not be deemed to exhibit positive or favorable ESG characteristics if different metrics were used to evaluate them.
Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s operations, universe of potential investment options, and return potential.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. 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 | 0.650 | % | ||
Next $4.5 billion | 0.600 | % | ||
Next $5 billion | 0.575 | % | ||
Over $10 billion | 0.550 | % |
For the six months ended February 29, 2024, the effective advisory fee rate incurred by the Fund was 0.61%.
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. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (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 agreed, for an indefinite period, 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 1.50%, 2.00%, 1.75%, 1.25%, 1.25% and 1.25%, respectively, of the Fund’s average daily net assets (the “boundary 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, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least June 30, 2025, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended February 29, 2024, the Adviser waived advisory fees of $58,923.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 29, 2024, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Fund, SSB also serves as the Fund’s custodian.
29 | Invesco Floating Rate ESG 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 29, 2024, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, 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, 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 Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 29, 2024, expenses incurred under the Plans are shown in the Consolidated Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 29, 2024, IDI advised the Fund that IDI retained $49,852 in front-end sales commissions from the sale of Class A shares and $21,845 and $1,519 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. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of February 29, 2024. 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 consolidated 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 | ||||||||||||||||
| ||||||||||||||||
Variable Rate Senior Loan Interests | $ | – | $ | 2,128,481,294 | $ | 221,028,689 | $ | 2,349,509,983 | ||||||||
| ||||||||||||||||
U.S. Dollar Denominated Bonds & Notes | – | 144,195,992 | – | 144,195,992 | ||||||||||||
| ||||||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes | – | 100,202,102 | 127,176 | 100,329,278 | ||||||||||||
| ||||||||||||||||
Common Stocks & Other Equity Interests | 5,924,598 | 45,455,708 | 21,725,366 | 73,105,672 | ||||||||||||
| ||||||||||||||||
Preferred Stocks | – | – | 13,951,314 | 13,951,314 | ||||||||||||
| ||||||||||||||||
Municipal Obligations | – | – | 12,430,077 | 12,430,077 | ||||||||||||
| ||||||||||||||||
Money Market Funds | 66,209,671 | – | – | 66,209,671 | ||||||||||||
| ||||||||||||||||
Total Investments in Securities | 72,134,269 | 2,418,335,096 | 269,262,622 | 2,759,731,987 | ||||||||||||
| ||||||||||||||||
Other Investments – Assets* | ||||||||||||||||
| ||||||||||||||||
Investments Matured | – | – | 68,208 | 68,208 | ||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | 2,886,762 | – | 2,886,762 | ||||||||||||
| ||||||||||||||||
– | 2,886,762 | 68,208 | 2,954,970 | |||||||||||||
| ||||||||||||||||
Other Investments – Liabilities* | ||||||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | (424,647 | ) | – | (424,647 | ) | ||||||||||
| ||||||||||||||||
Total Other Investments | – | 2,462,115 | 68,208 | 2,530,323 | ||||||||||||
| ||||||||||||||||
Total Investments | $ | 72,134,269 | $ | 2,420,797,211 | $ | 269,330,830 | $ | 2,762,262,310 | ||||||||
|
* | Forward foreign currency contracts are valued at unrealized appreciation (depreciation). Investments matured are shown at value. |
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.
30 | Invesco Floating Rate ESG Fund |
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) during the six months ended February 29, 2024:
Value 08/31/23 | Purchases at Cost | Proceeds from Sales | Accrued Discounts/ Premiums | Realized (Loss) | Change in Unrealized Appreciation (Depreciation) | Transfers Level 3* | Transfers out of Level 3* | Value 02/29/24 | ||||||||||||||||||||||||||||
Variable Rate Senior Loan Interests | $ | 242,049,841 | $ | 91,671,561 | $ | (50,105,436 | ) | $ | 1,375,142 | $ | 130,379 | $ | (9,224,984 | ) | $ | 29,367,178 | $ | (84,234,992 | ) | $ | 221,028,689 | |||||||||||||||
Common Stocks & Other Equity Interests | 50,740,230 | 2,044,271 | (2,310,024 | ) | (137,183 | ) | (2,497,197 | ) | 4,768,753 | 691,476 | (31,574,960 | ) | 21,725,366 | |||||||||||||||||||||||
Preferred Stocks | 1,065,869 | – | – | – | – | 6,470,465 | 6,414,980 | – | 13,951,314 | |||||||||||||||||||||||||||
Municipal Obligations | – | 1,120,142 | – | 96,874 | – | (1,444,192 | ) | 12,657,253 | – | 12,430,077 | ||||||||||||||||||||||||||
U.S. Dollar Denominated Bonds & Notes | 217,908 | – | (222,061 | ) | – | – | 4,153 | – | – | – | ||||||||||||||||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes | 431,324 | – | (455,897 | ) | 15,433 | (13,538 | ) | 149,854 | – | – | 127,176 | |||||||||||||||||||||||||
Investments Matured | 1,009,460 | – | (939,740 | ) | – | (150,735 | ) | 149,223 | – | – | 68,208 | |||||||||||||||||||||||||
Total | $ | 295,514,632 | $ | 94,835,974 | $ | (54,033,158 | ) | $ | 1,350,266 | $ | (2,531,091 | ) | $ | 873,272 | $ | 49,130,887 | $ | (115,809,952 | ) | $ | 269,330,830 |
* Transfers into and out of Level 3 are due to increases or decreases in market activity impacting the available market inputs to determine the price.
Securities determined to be Level 3 at the end of the reporting period were valued primarily by utilizing evaluated prices from a third-party vendor pricing service. A significant change in third-party pricing information could result in a 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 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 Consolidated Statement of Assets and Liabilities.
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 29, 2024:
Value | ||||
Currency | ||||
Derivative Assets | Risk | |||
Unrealized appreciation on forward foreign currency contracts outstanding | $ | 2,886,762 | ||
Derivatives not subject to master netting agreements | - | |||
Total Derivative Assets subject to master netting agreements | $ | 2,886,762 |
Value | ||||
Currency | ||||
Derivative Liabilities | Risk | |||
| ||||
Unrealized depreciation on forward foreign currency contracts outstanding | $ | (424,647 | ) | |
| ||||
Derivatives not subject to master netting agreements | - | |||
| ||||
Total Derivative Liabilities subject to master netting agreements | $ | (424,647 | ) | |
|
31 | Invesco Floating Rate ESG Fund |
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 29, 2024.
Financial Derivative Assets | Financial Derivative Liabilities | Collateral (Received)/Pledged | ||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Forward Foreign Currency Contracts | Net Value of Derivatives | Non-Cash | Cash | Net Amount | ||||||||||||||
| ||||||||||||||||||||
Barclays Capital PLC | $ 761,359 | $ – | $ 761,359 | $– | $– | $ 761,359 | ||||||||||||||
| ||||||||||||||||||||
BNP Paribas S.A. | 157,235 | (73,155 | ) | 84,080 | – | – | 84,080 | |||||||||||||
| ||||||||||||||||||||
Canadian Imperial Bank of Commerce | 656,790 | (20,410 | ) | 636,380 | – | – | 636,380 | |||||||||||||
| ||||||||||||||||||||
Deutsche Bank AG | – | (3,216 | ) | (3,216 | ) | – | – | (3,216 | ) | |||||||||||
| ||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | 6,611 | (268 | ) | 6,343 | – | – | 6,343 | |||||||||||||
| ||||||||||||||||||||
Merrill Lynch International | 5 | (24,187 | ) | (24,182 | ) | – | – | (24,182 | ) | |||||||||||
| ||||||||||||||||||||
Morgan Stanley and Co. International PLC | 289,347 | (158,234 | ) | 131,113 | – | – | 131,113 | |||||||||||||
| ||||||||||||||||||||
Royal Bank of Canada | 865,092 | – | 865,092 | – | – | 865,092 | ||||||||||||||
| ||||||||||||||||||||
State Street Bank & Trust Co. | 150,323 | (145,177 | ) | 5,146 | – | – | 5,146 | |||||||||||||
| ||||||||||||||||||||
Total | $2,886,762 | $(424,647 | ) | $2,462,115 | $– | $– | $2,462,115 | |||||||||||||
|
Effect of Derivative Investments for the six months ended February 29, 2024
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 | |||||
Consolidated Statement of Operations | |||||
Currency | |||||
Risk | |||||
Realized Gain: | |||||
Forward foreign currency contracts | $ | 5,742,142 | |||
Change in Net Unrealized Appreciation (Depreciation): | |||||
Forward foreign currency contracts | (3,663,030 | ) | |||
Total | $ | 2,079,112 |
The table below summarizes the average notional value of derivatives held during the period.
Forward | ||||
Foreign Currency | ||||
Contracts | ||||
Average notional value | $783,622,832 |
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 29, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $5,961.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances and Borrowings
Effective February 16, 2024, the Fund has entered into a credit agreement, which enables the Fund to participate with another Invesco Fund in a committed secured borrowing facility that permits borrowings up to $1,027,500,000, collectively by certain Invesco Funds, and which will expire on February 14, 2025. Prior to February 16, 2024, the credit agreement permitted borrowings up to $1.07 billion. The credit agreement is secured by the assets of the Fund. The Fund is subject to certain covenants relating to the credit agreement. Failure to comply with these restrictions could cause the acceleration of the repayment of the amount outstanding under the credit agreement. During the six months ended February 29, 2024, the Fund did not borrow under this agreement.
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 at period-end, are shown in the Consolidated 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.
32 | Invesco Floating Rate ESG Fund |
NOTE 8–Unfunded Loan Commitments
Pursuant to the terms of certain Senior Loan agreements, the Fund held the following unfunded loan commitments as of February 29, 2024. The Fund intends to reserve against such contingent obligations by designating cash, liquid securities and liquid Senior Loans as a reserve. Unfunded loan commitments are reflected as a liability on the Consolidated Statement of Assets and Liabilities.
Borrower | Type | Unfunded Loan Commitment | Unrealized Appreciation (Depreciation) | |||||||
| ||||||||||
AI Aqua Merger Sub, Inc. | Delayed Draw Term Loan | $ 339,650 | $ 743 | |||||||
| ||||||||||
Areas (Telfer Inv/Financiere Pax) | Term Loan B | 838,606 | (22,606 | ) | ||||||
| ||||||||||
DexKo Global, Inc. | Revolver Loan | 3,355,178 | 232,565 | |||||||
| ||||||||||
Groundworks LLC | Delayed Draw Term Loan | 191,630 | 2,208 | |||||||
| ||||||||||
Groundworks LLC | Revolver Loan | 330,426 | 8,156 | |||||||
| ||||||||||
Kantar (Summer BC Bidco/KANGRP) | Revolver Loan | 4,939,889 | (178,656 | ) | ||||||
| ||||||||||
MB2 Dental Solutions LLC | Delayed Draw Term Loan | 1,428,342 | 0 | |||||||
| ||||||||||
MB2 Dental Solutions LLC | Delayed Draw Term Loan | 857,005 | 0 | |||||||
| ||||||||||
MB2 Dental Solutions LLC | Revolver Loan | 282,825 | (13 | ) | ||||||
| ||||||||||
McDermott International Ltd. | LOC | 6,610,320 | (2,313,612 | ) | ||||||
| ||||||||||
McDermott International Ltd. | LOC | 1,692,154 | (245,362 | ) | ||||||
| ||||||||||
Parques Reunidos (Piolin Bidco S.A.U.) | Revolver Loan | 137,590 | (11,221 | ) | ||||||
| ||||||||||
Robertshaw US Holding Corp. | Revolver Loan | 5,623,321 | (3,512 | ) | ||||||
| ||||||||||
Ryan LLC (Ryan Tax) | Delayed Draw Term Loan | 177,115 | 595 | |||||||
| ||||||||||
Tank Holding Corp. | Revolver Loan | 1,397,174 | (20,795 | ) | ||||||
| ||||||||||
V Global Holdings LLC (aka Vertellus) | Revolver Loan | 1,217,767 | (38,180 | ) | ||||||
| ||||||||||
$29,418,992 | $(2,589,690 | ) | ||||||||
|
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 fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2023, as follows:
Capital Loss Carryforward* | ||||||||||||
| ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
| ||||||||||||
Not subject to expiration | $ | 91,454,535 | $ | 316,817,693 | $ | 408,272,228 | ||||||
|
* | Capital loss carryforward 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 10–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 29, 2024 was $637,635,278 and $680,350,926, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
Aggregate unrealized appreciation of investments | $ | 76,680,419 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (201,776,994 | ) | ||
| ||||
Net unrealized appreciation (depreciation) of investments | $ | (125,096,575 | ) | |
|
Cost of investments for tax purposes is $2,887,358,885.
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.
33 | Invesco Floating Rate ESG Fund |
At the six months ended February 29, 2024, the following sets forth the selling participants with respect to interest in Senior Loans purchased by the Fund on a participation basis.
Selling Participant | Principal Amount | Value | ||||||||||
Bank of America, N.A. | $ | 2,026,605 | $ | 1,874,610 | ||||||||
Barclays Bank PLC | 8,302,473 | 5,842,654 | ||||||||||
BMO Harris Bank N.A. | 3,617,443 | 3,594,273 | ||||||||||
Citibank, N.A. | 2,118,708 | 2,033,960 | ||||||||||
Credit Agricole CIB | 1,073,593 | 1,024,283 | ||||||||||
JP Morgan Europe Ltd | $ | 9,212,414 | $ | 3,976,787 |
NOTE 12–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
February 29, 2024(a) | August 31, 2023 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 17,729,645 | $ | 120,606,393 | 24,740,287 | $ | 167,143,126 | ||||||||||
| ||||||||||||||||
Class C | 1,229,557 | 8,328,406 | 1,657,010 | 11,168,875 | ||||||||||||
| ||||||||||||||||
Class R | 172,950 | 1,180,306 | 259,559 | 1,755,006 | ||||||||||||
| ||||||||||||||||
Class Y | 37,991,183 | 258,162,031 | 122,766,037 | 829,675,105 | ||||||||||||
| ||||||||||||||||
Class R5 | 419,704 | 2,859,296 | 154,057 | 1,039,674 | ||||||||||||
| ||||||||||||||||
Class R6 | 17,827,831 | 121,013,380 | 36,935,311 | 249,790,827 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 3,699,407 | 25,161,136 | 7,144,382 | 48,135,446 | ||||||||||||
| ||||||||||||||||
Class C | 358,950 | 2,430,529 | 884,584 | 5,930,520 | ||||||||||||
| ||||||||||||||||
Class R | 52,705 | 359,342 | 108,537 | 732,627 | ||||||||||||
| ||||||||||||||||
Class Y | 5,930,573 | 40,287,042 | 16,953,732 | 114,003,113 | ||||||||||||
| ||||||||||||||||
Class R5 | 37,540 | 255,419 | 69,248 | 466,625 | ||||||||||||
| ||||||||||||||||
Class R6 | 3,359,282 | 22,803,138 | 6,085,864 | 40,903,230 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 530,795 | 3,612,000 | 1,304,992 | 8,819,967 | ||||||||||||
| ||||||||||||||||
Class C | (533,143 | ) | (3,612,000 | ) | (1,310,811 | ) | (8,819,967 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (15,233,639 | ) | (103,608,081 | ) | (43,493,816 | ) | (294,042,422 | ) | ||||||||
| ||||||||||||||||
Class C | (1,705,733 | ) | (11,546,402 | ) | (4,282,558 | ) | (28,791,625 | ) | ||||||||
| ||||||||||||||||
Class R | (197,442 | ) | (1,347,075 | ) | (341,385 | ) | (2,306,431 | ) | ||||||||
| ||||||||||||||||
Class Y | (65,728,295 | ) | (446,464,780 | ) | (309,560,685 | ) | (2,086,907,103 | ) | ||||||||
| ||||||||||||||||
Class R5 | (210,252 | ) | (1,431,440 | ) | (199,142 | ) | (1,349,631 | ) | ||||||||
| ||||||||||||||||
Class R6 | (15,040,235 | ) | (102,171,218 | ) | (41,024,647 | ) | (276,654,597 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (9,308,617 | ) | $ | (63,122,578 | ) | (181,149,444 | ) | $ | (1,219,307,635 | ) | ||||||
|
(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. |
34 | Invesco Floating Rate ESG 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, 2023 through February 29, 2024.
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 (09/01/23) | Ending Account Value (02/29/24)1 | Expenses Paid During Period2 | Ending Account Value (02/29/24) | Expenses Paid During Period2 | Annualized Ratio | |||||||
Class A | $1,000.00 | $1,046.30 | $5.49 | $1,019.49 | $5.42 | 1.08% | ||||||
Class C | 1,000.00 | 1,043.70 | 8.03 | 1,017.01 | 7.92 | 1.58 | ||||||
Class R | 1,000.00 | 1,045.00 | 6.76 | 1,018.25 | 6.67 | 1.33 | ||||||
Class Y | 1,000.00 | 1,047.60 | 4.23 | 1,020.74 | 4.17 | 0.83 | ||||||
Class R5 | 1,000.00 | 1,047.60 | 4.23 | 1,020.74 | 4.17 | 0.83 | ||||||
Class R6 | 1,000.00 | 1,048.00 | 3.87 | 1,021.08 | 3.82 | 0.76 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2023 through February 29, 2024, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
35 | Invesco Floating Rate ESG Fund |
A Special Joint Meeting (“Meeting”) of Shareholders of AIM Counselor Series Trust (Invesco Counselor Series Trust), a Delaware statutory trust (“Trust”), was held on January 16, 2024. The Meeting was held for the following purpose:
(1) | Elect 14 trustees to the Board of Trustees of the Trust, each of whom will serve until his or her successor is duly elected and qualified. |
The results of the voting on the above matter were as follows:
Matter | Votes For | Votes Against/Withheld | ||||||||||||
(1)* | Beth Ann Brown. | 3,109,848,785.61 | 65,706,470.15 | |||||||||||
Carol Deckbar | 3,109,186,378.07 | 66,368,877.70 | ||||||||||||
Cynthia Hostetler | 3,108,148,647.37 | 67,406,608.40 | ||||||||||||
Dr. Eli Jones. | 3,106,962,123.35 | 68,593,132.42 | ||||||||||||
Elizabeth Krentzman. | 3,109,153,762.02 | 66,401,493.75 | ||||||||||||
Jeffrey H. Kupor | 3,109,094,174.85 | 66,461,080.92 | ||||||||||||
Anthony J. LaCava, Jr. | 3,107,453,603.09 | 68,101,652.67 | ||||||||||||
James Liddy | 3,108,418,832.17 | 67,136,423.60 | ||||||||||||
Dr. Prema Mathai-Davis | 3,100,922,564.57 | 74,632,691.20 | ||||||||||||
Joel W. Motley | 3,104,496,522.60 | 71,058,733.17 | ||||||||||||
Teresa M. Ressel | 3,109,248,693.76 | 66,306,562.01 | ||||||||||||
Douglas Sharp | 3,108,681,578.09 | 66,873,677.67 | ||||||||||||
Robert C. Troccoli | 3,104,038,320.81 | 71,516,934.96 | ||||||||||||
Daniel S. Vandivort | 3,106,373,978.14 | 69,181,277.62 |
* Proposal 1 required approval by a combined vote of all the portfolios of AIM Counselor Series Trust (Invesco Counselor Series Trust).
36 | Invesco Floating Rate ESG Fund |
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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
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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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, 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/ corporate/about-us/esg. 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. This 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 number(s): 811-09913 and 333-36074 | Invesco Distributors, Inc. | FLR-SAR-1 |
Semiannual Report to Shareholders | February 29, 2024 |
Invesco Global Real Estate Income Fund
Nasdaq:
A: ASRAX ∎ C: ASRCX ∎ Y: ASRYX ∎ R5: ASRIX ∎ R6: ASRFX
2 | Fund Performance | |
4 | Schedule of Investments | |
7 | Financial Statements | |
10 | Financial Highlights | |
11 | Notes to Financial Statements | |
17 | Fund Expenses | |
18 | Proxy Results |
Beginning in July 2024, amendments adopted by the Securities and Exchange Commission will substantially impact the design, content, and delivery of shareholder reports. These newly designed shareholder reports will highlight key fund information in a clear and concise format and must be mailed to each shareholder that has not elected to receive the reports electronically. Other information, including financial statements, will no longer be included in the shareholder report but will be available at invesco.com/reports, delivered upon request, and filed on a semi-annual basis on Form N-CSR.
If you would like to receive shareholder reports and other communications electronically instead of by mail, you may make that request 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. If you do not make this request or enroll in e-delivery, you will receive future shareholder reports and other communications by mail.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance. Unless otherwise noted, all data is 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, 8/31/23 to 2/29/24, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 3.58 | % | ||
Class C Shares | 3.19 | |||
Class Y Shares | 3.72 | |||
Class R5 Shares | 3.77 | |||
Class R6 Shares | 3.81 | |||
MSCI World Index▼ (Broad Market Index) | 12.46 | |||
FTSE EPRA/NAREIT Developed Index (Net)▼ (Style-Specific Index) | 3.28 | |||
Source(s): ▼RIMES Technologies Corp. |
| |||
The MSCI 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 for non-resident investors. |
| |||
The FTSE EPRA/NAREIT Developed index (Net) 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 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. |
|
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.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, visit blog.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 2/29/24, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (5/31/02) | 6.23 | % | ||
10 Years | 2.43 | |||
5 Years | 0.04 | |||
1 Year | -3.94 | |||
Class C Shares | ||||
Inception (3/9/07) | 2.61 | % | ||
10 Years | 2.39 | |||
5 Years | 0.39 | |||
1 Year | -0.07 | |||
Class Y Shares | ||||
Inception (10/3/08) | 5.36 | % | ||
10 Years | 3.27 | |||
5 Years | 1.41 | |||
1 Year | 1.95 | |||
Class R5 Shares | ||||
Inception (3/9/07) | 3.34 | % | ||
10 Years | 3.34 | |||
5 Years | 1.46 | |||
1 Year | 2.04 | |||
Class R6 Shares | ||||
Inception (9/24/12) | 3.72 | % | ||
10 Years | 3.43 | |||
5 Years | 1.57 | |||
1 Year | 2.12 |
On March 12, 2007, the Fund reorganized from a Closed-End Fund to an Open-End Fund. Performance shown prior to that date is that of the Closed-End Fund’s Common shares and includes the fees applicable to Common shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions (reinvested at net asset value, except for periods prior to March 12, 2007 where reinvestments were made at the lower of the Closed-End Fund’s net asset value or market price), changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
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 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.
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.
3 | Invesco Global Real Estate Income Fund |
February 29, 2024
(Unaudited)
Shares | Value | |||||||
| ||||||||
Common Stocks & Other Equity Interests–66.39% |
| |||||||
Australia–1.54% | ||||||||
Dexus | 1,878,071 | $ | 8,993,762 | |||||
| ||||||||
Belgium–0.49% | ||||||||
Cofinimmo S.A.(a) | 46,047 | 2,876,488 | ||||||
| ||||||||
Canada–4.10% | ||||||||
Allied Properties REIT | 192,800 | 2,413,640 | ||||||
| ||||||||
Canadian Apartment Properties REIT | 135,100 | 4,739,425 | ||||||
| ||||||||
RioCan REIT | 575,900 | 7,587,291 | ||||||
| ||||||||
StorageVault Canada, Inc. | 2,320,955 | 9,217,808 | ||||||
| ||||||||
23,958,164 | ||||||||
| ||||||||
Germany–5.03% | ||||||||
LEG Immobilien SE(b) | 120,578 | 8,881,705 | ||||||
| ||||||||
Sirius Real Estate Ltd. | 6,058,733 | 6,629,934 | ||||||
| ||||||||
Vonovia SE | 497,413 | 13,882,368 | ||||||
| ||||||||
29,394,007 | ||||||||
| ||||||||
Hong Kong–3.92% | ||||||||
Hang Lung Properties Ltd. | 5,404,000 | 5,800,183 | ||||||
| ||||||||
Link REIT | 1,966,300 | 9,750,109 | ||||||
| ||||||||
Sun Hung Kai Properties Ltd. | 730,000 | 7,345,457 | ||||||
| ||||||||
22,895,749 | ||||||||
| ||||||||
Japan–5.94% | ||||||||
GLP J-Reit | 12,657 | 10,041,910 | ||||||
| ||||||||
Mitsui Fudosan Co. Ltd. | 556,300 | 15,101,797 | ||||||
| ||||||||
Mitsui Fudosan Logistics Park, Inc. | 1,085 | 3,075,360 | ||||||
| ||||||||
Nippon Prologis REIT, Inc. | 3,867 | 6,469,688 | ||||||
| ||||||||
34,688,755 | ||||||||
| ||||||||
Singapore–0.92% | ||||||||
CapitaLand Investment Ltd. | 2,599,200 | 5,377,007 | ||||||
| ||||||||
Spain–0.94% | ||||||||
Cellnex Telecom S.A.(c) | 151,915 | 5,492,416 | ||||||
| ||||||||
United Kingdom–3.81% | ||||||||
Big Yellow Group PLC | 232,550 | 2,951,180 | ||||||
| ||||||||
Derwent London PLC | 371,426 | 9,044,965 | ||||||
| ||||||||
Safestore Holdings PLC | 619,699 | 6,008,064 | ||||||
| ||||||||
Segro PLC | 393,544 | 4,209,146 | ||||||
| ||||||||
22,213,355 | ||||||||
| ||||||||
United States–39.70% | ||||||||
Agree Realty Corp. | 182,899 | 10,050,300 | ||||||
| ||||||||
Alexandria Real Estate Equities, Inc. | 165,643 | 20,660,651 | ||||||
| ||||||||
American Tower Corp. | 23,337 | 4,640,796 | ||||||
| ||||||||
Camden Property Trust | 25,402 | 2,399,981 | ||||||
| ||||||||
Digital Realty Trust, Inc.(a) | 77,342 | 11,354,579 | ||||||
| ||||||||
Equinix, Inc. | 21,679 | 19,268,729 | ||||||
| ||||||||
Gaming and Leisure Properties, Inc. | 125,168 | 5,692,641 | ||||||
| ||||||||
Healthpeak Properties, Inc. | 1,205,288 | 20,188,574 | ||||||
| ||||||||
Invitation Homes, Inc. | 220,294 | 7,505,417 | ||||||
| ||||||||
Outfront Media, Inc. | 460,179 | 6,612,772 | ||||||
| ||||||||
Prologis, Inc. | 239,342 | 31,897,108 | ||||||
|
Shares | Value | |||||||
| ||||||||
United States–(continued) | ||||||||
Public Storage | 61,867 | $ | 17,562,185 | |||||
| ||||||||
Realty Income Corp. | 96,484 | 5,027,781 | ||||||
| ||||||||
Rexford Industrial Realty, Inc. | 383,012 | 19,487,650 | ||||||
| ||||||||
Sun Communities, Inc. | 76,371 | 10,215,385 | ||||||
| ||||||||
Terreno Realty Corp. | 181,186 | 11,650,260 | ||||||
| ||||||||
UDR, Inc. | 192,250 | 6,824,875 | ||||||
| ||||||||
Ventas, Inc. | 234,704 | 9,925,632 | ||||||
| ||||||||
VICI Properties, Inc. | 361,820 | 10,829,273 | ||||||
| ||||||||
231,794,589 | ||||||||
| ||||||||
Total Common Stocks & Other Equity Interests |
| 387,684,292 | ||||||
| ||||||||
Principal Amount | ||||||||
Asset-Backed Securities–20.98% |
| |||||||
BX Commercial Mortgage Trust, | ||||||||
Series 2021-VOLT, Class D, 7.08% (1 mo. Term SOFR + 1.76%), 09/15/2036(c)(d) | $ | 6,000,000 | 5,907,093 | |||||
| ||||||||
Series 2021-VOLT, Class E, 7.43% (1 mo. Term SOFR + 2.11%), 09/15/2036(c)(d) | 6,495,000 | 6,411,516 | ||||||
| ||||||||
BX Trust, | ||||||||
Series 2021-MFM1, Class E, 7.68% (1 mo. Term SOFR + 2.36%), 01/15/2034(c)(d) | 8,045,749 | 7,925,907 | ||||||
| ||||||||
Series 2019-OC11, Class E, 3.94%, 12/09/2041(c)(e) | 4,000,000 | 3,398,943 | ||||||
| ||||||||
CEDR Commercial Mortgage Trust, Series 2022-SNAI, Class E, 8.34% (1 mo. Term SOFR + 3.02%), 02/15/2039(c)(d) | 500,000 | 431,077 | ||||||
| ||||||||
CFK Trust, Series 2019-FAX, Class E, 4.64%, 01/15/2039(c)(e) | 1,000,000 | 854,725 | ||||||
| ||||||||
Citigroup Commercial Mortgage Trust, | ||||||||
Series 2020-420K, Class E, 3.31%, 11/10/2042(c)(e) | 4,586,000 | 3,663,479 | ||||||
| ||||||||
Series 2020-555, Class F, 3.50%, 12/10/2041(c)(e) | 800,000 | 590,763 | ||||||
| ||||||||
Series 2020-420K, Class D, 3.31%, 11/10/2042(c)(e) | 1,000,000 | 826,033 | ||||||
| ||||||||
Cold Storage Trust, Series 2020-ICE5, Class E, 8.20% (1 mo. Term SOFR + 2.88%), 11/15/2037(c)(d) | 10,788,321 | 10,773,887 | ||||||
| ||||||||
Commercial Mortgage Trust, | ||||||||
Series 2019-GC44, Class 180B, 3.40%, 08/15/2057(c)(e) | 1,500,000 | 1,390,566 | ||||||
| ||||||||
Series 2020-SBX, Class D, 2.32%, 01/10/2038(c)(e) | 6,200,000 | 5,197,572 | ||||||
| ||||||||
Series 2019-GC44, Class 180C, 3.40%, 08/15/2057(c)(e) | 5,500,000 | 4,991,867 | ||||||
| ||||||||
Credit Suisse Mortgage Capital Trust, Series 2021-BHAR, Class E, 8.93% (1 mo. Term SOFR + 3.61%), 11/15/2038(c)(d) | 3,000,000 | 2,929,062 | ||||||
| ||||||||
CSMC, Series 2021-BHAR, Class C, 7.43% (1 mo. Term SOFR + 2.11%), 11/15/2038(c)(d) | 170,000 | 168,025 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 | Invesco Global Real Estate Income Fund |
Principal Amount | Value | |||||||
| ||||||||
GS Mortgage Securities Corp. Trust, Series 2022-GTWY, Class A, 8.72% (1 mo. Term SOFR + 3.40%), | $ | 10,050,000 | $ | 10,111,658 | ||||
| ||||||||
Hilton USA Trust, Series 2016-HHV, Class E, 4.19%, 11/05/2038(c)(e) | 1,761,000 | 1,630,202 | ||||||
| ||||||||
Independence Plaza Trust, Series 2018-INDP, Class E, 5.00%, 07/10/2035(c) | 7,000,000 | 6,504,985 | ||||||
| ||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, | ||||||||
Series 2019-UES, Class F, 4.45%, 05/05/2032(c)(e) | 558,000 | 522,435 | ||||||
| ||||||||
Series 2019-UES, Class B, 4.14%, 05/05/2032(c) | 401,000 | 385,643 | ||||||
| ||||||||
Series 2019-UES, Class C, 4.34%, 05/05/2032(c) | 116,000 | 110,834 | ||||||
| ||||||||
Series 2019-UES, Class D, 4.45%, 05/05/2032(c)(e) | 119,000 | 112,795 | ||||||
| ||||||||
Series 2019-UES, Class E, 4.45%, 05/05/2032(c)(e) | 138,000 | 129,993 | ||||||
| ||||||||
Series 2019-UES, Class G, 4.45%, 05/05/2032(c)(e) | 158,000 | 147,118 | ||||||
| ||||||||
MHC Commercial Mortgage Trust, Series 2021-MHC, Class F, 8.03% (1 mo. Term SOFR + 2.72%), 04/15/2038(c)(d) | 6,711,014 | 6,641,156 | ||||||
| ||||||||
Morgan Stanley Capital I Trust, Series 2018-SUN, Class F, 8.17% (1 mo. Term SOFR + 2.85%), 07/15/2035(c)(d) | 11,306,000 | 10,952,650 | ||||||
| ||||||||
Natixis Commercial Mortgage Securities Trust, | ||||||||
Series 2020-2PAC, Class AMZ3, 3.50%, 01/15/2037(c)(e) | 5,326,000 | 3,645,005 | ||||||
| ||||||||
Series 2020-2PAC, Class AMZ2, 3.50%, 01/15/2037(c)(e) | 800,000 | 618,089 | ||||||
| ||||||||
SG Commercial Mortgage Securities Trust, Series 2019-PREZ, Class E, 3.48%, 09/15/2039(c)(e) | 6,157,000 | 4,828,992 | ||||||
| ||||||||
STWD Trust, | ||||||||
Series 2021-FLWR, Class E, 7.36% (1 mo. Term SOFR + 2.04%), 07/15/2036(c)(d) | 4,950,000 | 4,858,535 | ||||||
| ||||||||
Series 2021-FLWR, Class F, 8.11% (1 mo. Term SOFR + 2.79%), 07/15/2036(c)(d) | 3,400,000 | 3,299,602 | ||||||
| ||||||||
Prima Capital CRE Securitization Ltd., Series 2019-RK1, Class BT, 4.45%, 04/15/2038(c) | 14,154,000 | 12,527,962 | ||||||
| ||||||||
Total Asset-Backed Securities |
| 122,488,169 | ||||||
| ||||||||
Shares | ||||||||
Preferred Stocks–7.46% | ||||||||
United States–7.46% | ||||||||
American Homes 4 Rent, 5.88%, Series G, Pfd. | 84,200 | 2,015,748 | ||||||
| ||||||||
American Homes 4 Rent, 6.25%, Series H, Pfd. | 200,100 | 4,954,476 | ||||||
| ||||||||
DiamondRock Hospitality Co., 8.25%, Pfd. | 168,578 | 4,283,567 | ||||||
| ||||||||
Eagle Hospitality Properties Trust, Inc., 8.25%, Series A, Pfd. (Acquired 08/16/2007; | 195,800 | 0 | ||||||
| ||||||||
National Storage Affiliates Trust, 6.00%, Series A, Pfd. | 243,300 | 5,501,013 | ||||||
|
Shares | Value | |||||||
| ||||||||
United States–(continued) | ||||||||
Pebblebrook Hotel Trust, 6.38%, Series E, Pfd.(h) | 223,861 | $ | 4,741,376 | |||||
| ||||||||
Pebblebrook Hotel Trust, 6.30%, Series F, Pfd. | 173,676 | 3,793,084 | ||||||
| ||||||||
SITE Centers Corp., 6.38%, Series A, Pfd. | 214,100 | 4,977,825 | ||||||
| ||||||||
UMH Properties, Inc., 6.38%, Series D, Pfd. (Acquired 03/25/2021-09/08/2022; | 566,800 | 13,314,132 | ||||||
| ||||||||
Total Preferred Stocks (Cost $48,036,044) |
| 43,581,221 | ||||||
| ||||||||
Principal Amount | ||||||||
Municipal Obligations–1.30% |
| |||||||
United States–1.30% | ||||||||
New York City Housing Development Corp. (8 Spruce Street), Series 2014, Ref. RB, 3.71%, 02/15/2048 (Cost $7,333,747) | $ | 7,735,000 | 7,579,628 | |||||
| ||||||||
U.S. Dollar Denominated Bonds & Notes–1.28% |
| |||||||
France–0.31% | ||||||||
WEA Finance LLC, 2.88%, 01/15/2027(c) | 2,000,000 | 1,818,112 | ||||||
| ||||||||
United States–0.97% | ||||||||
RLJ Lodging Trust L.P., 3.75%, 07/01/2026(c) | 4,000,000 | 3,774,600 | ||||||
| ||||||||
SBA Communications Corp., 3.88%, 02/15/2027 | 2,000,000 | 1,889,066 | ||||||
| ||||||||
5,663,666 | ||||||||
| ||||||||
Total U.S. Dollar Denominated Bonds & Notes |
| 7,481,778 | ||||||
| ||||||||
Shares | ||||||||
Money Market Funds–2.52% | ||||||||
Invesco Government & Agency Portfolio, Institutional Class, | 5,154,488 | 5,154,488 | ||||||
| ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 5.41%(i)(j) | 3,684,517 | 3,686,359 | ||||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 5.23%(i)(j) | 5,890,843 | 5,890,843 | ||||||
| ||||||||
Total Money Market Funds | 14,731,690 | |||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES (excluding Investments purchased with cash collateral from securities on loan)-99.93% |
| 583,546,778 | ||||||
| ||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds–2.26% | ||||||||
Invesco Private Government Fund, 5.29%(i)(j)(k) | 3,685,588 | 3,685,588 | ||||||
| ||||||||
Invesco Private Prime Fund, | 9,472,490 | 9,477,226 | ||||||
| ||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan |
| 13,162,814 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES–102.19% |
| 596,709,592 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES–(2.19)% |
| (12,785,152 | ) | |||||
| ||||||||
NET ASSETS–100.00% | $ | 583,924,440 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Global Real Estate Income Fund |
Investment Abbreviations:
Pfd. | – Preferred | |
RB | – Revenue Bonds | |
Ref. | – Refunding | |
REIT | – Real Estate Investment Trust | |
SOFR | – Secured Overnight Financing Rate |
Notes to Schedule of Investments:
(a) | All or a portion of this security was out on loan at February 29, 2024. |
(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 29, 2024 was $133,573,297, which represented 22.88% of the Fund’s Net Assets. |
(d) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 29, 2024. |
(e) | 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 29, 2024. |
(f) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(g) | Restricted security. The aggregate value of these securities at February 29, 2024 was $13,314,132, which represented 2.28% of the Fund’s Net Assets. |
(h) | Affiliated company. The Investment Company Act of 1940, as amended (the “1940 Act”), defines “affiliated person” to include an issuer of which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. |
(i) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 29, 2024. |
Value August 31, 2023 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain | Value February 29, 2024 | Dividend Income | |||||||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | |||||||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ | 9,655,129 | $ | 22,541,569 | $ | (27,042,210) | $ | - | $ | - | $ | 5,154,488 | $242,134 | ||||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 6,895,829 | 16,101,120 | (19,315,865) | 124 | 5,151 | 3,686,359 | 178,371 | ||||||||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 11,034,434 | 25,761,791 | (30,905,382) | - | - | 5,890,843 | 276,342 | ||||||||||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | |||||||||||||||||||||||||||||||||||
Invesco Private Government Fund | 728,598 | 33,057,433 | (30,100,443) | - | - | 3,685,588 | 57,419* | ||||||||||||||||||||||||||||
Invesco Private Prime Fund | 1,873,540 | 75,429,110 | (67,828,079) | - | 2,655 | 9,477,226 | 156,184* | ||||||||||||||||||||||||||||
Total | $ | 30,187,530 | $ | 172,891,023 | $ | (175,191,979) | $124 | $7,806 | $ | 27,894,504 | $910,450 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(j) | The rate shown is the 7-day SEC standardized yield as of February 29, 2024. |
(k) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
Portfolio Composition
By country, based on Net Assets
as of February 29, 2024
United States | 68.26% | |||
| ||||
Japan | 5.94 | |||
| ||||
Germany | 5.03 | |||
| ||||
Canada | 4.10 | |||
| ||||
Hong Kong | 3.92 | |||
| ||||
United Kingdom | 3.81 | |||
| ||||
Cayman Islands | 2.15 | |||
| ||||
Countries each less than 2% of portfolio | 4.20 | |||
| ||||
Money Market Funds Plus Other Assets Less Liabilities | 2.59 | |||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Global Real Estate Income Fund |
Statement of Assets and Liabilities
February 29, 2024
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value (Cost $579,630,548)* | $ | 568,815,088 | ||
| ||||
Investments in affiliated money market funds, at value (Cost $27,894,376) | 27,894,504 | |||
| ||||
Cash | 198,768 | |||
| ||||
Foreign currencies, at value (Cost $469,105) | 469,197 | |||
| ||||
Receivable for: | ||||
Investments sold | 2,561,219 | |||
| ||||
Fund shares sold | 493,172 | |||
| ||||
Dividends | 1,059,179 | |||
| ||||
Interest | 493,191 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 95,985 | |||
| ||||
Other assets | 143,712 | |||
| ||||
Total assets | 602,224,015 | |||
| ||||
Liabilities: | ||||
Payable for: | ||||
Investments purchased | 4,559,638 | |||
| ||||
Fund shares reacquired | 215,283 | |||
| ||||
Collateral upon return of securities loaned | 13,162,814 | |||
| ||||
Accrued fees to affiliates | 182,535 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 1,164 | |||
| ||||
Accrued other operating expenses | 75,145 | |||
| ||||
Trustee deferred compensation and retirement plans | 102,996 | |||
| ||||
Total liabilities | 18,299,575 | |||
| ||||
Net assets applicable to shares outstanding | $ | 583,924,440 | ||
| ||||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 624,350,805 | ||
| ||||
Distributable earnings (loss) | (40,426,365 | ) | ||
| ||||
$ | 583,924,440 | |||
|
Net Assets: | ||||
Class A | $ | 88,568,031 | ||
| ||||
Class C | $ | 2,788,167 | ||
| ||||
Class Y | $ | 292,737,935 | ||
| ||||
Class R5 | $ | 1,280,245 | ||
| ||||
Class R6 | $ | 198,550,062 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 10,988,231 | |||
| ||||
Class C | 346,267 | |||
| ||||
Class Y | 36,441,868 | |||
| ||||
Class R5 | 159,226 | |||
| ||||
Class R6 | 24,659,071 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 8.06 | ||
| ||||
Maximum offering price per share | $ | 8.53 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 8.05 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 8.03 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 8.04 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 8.05 | ||
|
* | At February 29, 2024, securities with an aggregate value of $13,114,150 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Global Real Estate Income Fund |
Statement of Operations
For the six months ended February 29, 2024
(Unaudited)
Investment income: |
| |||
Interest | $ | 5,802,633 | ||
| ||||
Dividends (net of foreign withholding taxes of $378,321) | 8,632,962 | |||
| ||||
Dividends from affiliated money market funds (includes net securities lending income of $6,781) | 703,628 | |||
| ||||
Total investment income | 15,139,223 | |||
| ||||
Expenses: | ||||
Advisory fees | 2,186,407 | |||
| ||||
Administrative services fees | 40,009 | |||
| ||||
Custodian fees | 10,029 | |||
| ||||
Distribution fees: | ||||
Class A | 111,884 | |||
| ||||
Class C | 15,065 | |||
| ||||
Transfer agent fees – A, C and Y | 392,753 | |||
| ||||
Transfer agent fees – R5 | 646 | |||
| ||||
Transfer agent fees – R6 | 29,081 | |||
| ||||
Trustees’ and officers’ fees and benefits | 13,133 | |||
| ||||
Registration and filing fees | 39,069 | |||
| ||||
Reports to shareholders | 76,969 | |||
| ||||
Professional services fees | 35,336 | |||
| ||||
Other | 23,939 | |||
| ||||
Total expenses | 2,974,320 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (17,973 | ) | ||
| ||||
Net expenses | 2,956,347 | |||
| ||||
Net investment income | 12,182,876 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | (4,615,371 | ) | ||
| ||||
Affiliated investment securities | 7,806 | |||
| ||||
Foreign currencies | (49,602 | ) | ||
| ||||
(4,657,167 | ) | |||
| ||||
Change in net unrealized appreciation of: | ||||
Unaffiliated investment securities | 16,259,817 | |||
| ||||
Affiliated investment securities | 124 | |||
| ||||
Foreign currencies | 21,702 | |||
| ||||
16,281,643 | ||||
| ||||
Net realized and unrealized gain | 11,624,476 | |||
| ||||
Net increase in net assets resulting from operations | $ | 23,807,352 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Global Real Estate Income Fund |
Statement of Changes in Net Assets
For the six months ended February 29, 2024 and the year ended August 31, 2023
(Unaudited)
February 29, 2024 | August 31, 2023 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 12,182,876 | $ | 21,760,949 | ||||
| ||||||||
Net realized gain (loss) | (4,657,167 | ) | (9,204,985 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 16,281,643 | (30,840,314 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 23,807,352 | (18,284,350 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (1,715,588 | ) | (2,443,875 | ) | ||||
| ||||||||
Class C | (47,359 | ) | (74,239 | ) | ||||
| ||||||||
Class Y | (6,290,280 | ) | (7,676,883 | ) | ||||
| ||||||||
Class R5 | (27,099 | ) | (35,932 | ) | ||||
| ||||||||
Class R6 | (4,144,468 | ) | (5,605,758 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (12,224,794 | ) | (15,836,687 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (6,270,740 | ) | (16,568,731 | ) | ||||
| ||||||||
Class C | (568,032 | ) | (2,180,572 | ) | ||||
| ||||||||
Class Y | (15,285,190 | ) | 13,177,665 | |||||
| ||||||||
Class R5 | (41,564 | ) | (43,646 | ) | ||||
| ||||||||
Class R6 | (1,792,868 | ) | (5,560,973 | ) | ||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (23,958,394 | ) | (11,176,257 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (12,375,836 | ) | (45,297,294 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 596,300,276 | 641,597,570 | ||||||
| ||||||||
End of period | $ | 583,924,440 | $ | 596,300,276 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Global Real Estate Income Fund |
(Unaudited)
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 | Return of capital | 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 02/29/24 | $7.93 | $0.15 | $ 0.13 | $ 0.28 | $(0.15 | ) | $ - | $ - | $(0.15 | ) | $8.06 | 3.58 | % | $ 88,568 | 1.26 | %(d) | 1.27 | %(d) | 3.88 | %(d) | 17 | % | ||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 8.35 | 0.27 | (0.50 | ) | (0.23 | ) | (0.19 | ) | - | - | (0.19 | ) | 7.93 | (2.69 | ) | 93,512 | 1.21 | 1.21 | 3.39 | 78 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 9.88 | 0.16 | (1.48 | ) | (1.32 | ) | (0.12 | ) | - | (0.09 | ) | (0.21 | ) | 8.35 | (13.56 | ) | 116,084 | 1.20 | 1.20 | 1.69 | 39 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 8.06 | 0.14 | 1.84 | 1.98 | (0.16 | ) | - | - | (0.16 | ) | 9.88 | 24.81 | (e) | 149,008 | 1.19 | (e) | 1.19 | (e) | 1.63 | (e) | 41 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 9.57 | 0.21 | (0.99 | ) | (0.78 | ) | (0.48 | ) | (0.25 | ) | - | (0.73 | ) | 8.06 | (8.55 | ) | 135,022 | 1.22 | 1.22 | 2.48 | 72 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 9.11 | 0.28 | 0.49 | 0.77 | (0.31 | ) | - | - | (0.31 | ) | 9.57 | 8.69 | 175,013 | 1.25 | 1.25 | 3.05 | 41 | |||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 7.92 | 0.12 | 0.13 | 0.25 | (0.12 | ) | - | - | (0.12 | ) | 8.05 | 3.19 | 2,788 | 2.01 | (d) | 2.02 | (d) | 3.13 | (d) | 17 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 8.34 | 0.21 | (0.50 | ) | (0.29 | ) | (0.13 | ) | - | - | (0.13 | ) | 7.92 | (3.45 | ) | 3,304 | 1.96 | 1.96 | 2.64 | 78 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 9.86 | 0.09 | (1.47 | ) | (1.38 | ) | (0.08 | ) | - | (0.06 | ) | (0.14 | ) | 8.34 | (14.15 | ) | 5,782 | 1.95 | 1.95 | 0.94 | 39 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 8.05 | 0.08 | 1.82 | 1.90 | (0.09 | ) | - | - | (0.09 | ) | 9.86 | 23.79 | 9,722 | 1.95 | 1.95 | 0.87 | 41 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 9.55 | 0.15 | (0.99 | ) | (0.84 | ) | (0.41 | ) | (0.25 | ) | - | (0.66 | ) | 8.05 | (9.22 | ) | 21,394 | 1.97 | 1.97 | 1.73 | 72 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 9.09 | 0.21 | 0.49 | 0.70 | (0.24 | ) | - | - | (0.24 | ) | 9.55 | 7.89 | 39,088 | 2.00 | 2.00 | 2.30 | 41 | |||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 7.90 | 0.16 | 0.13 | 0.29 | (0.16 | ) | - | - | (0.16 | ) | 8.03 | 3.72 | 292,738 | 1.01 | (d) | 1.02 | (d) | 4.13 | (d) | 17 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 8.33 | 0.29 | (0.51 | ) | (0.22 | ) | (0.21 | ) | - | - | (0.21 | ) | 7.90 | (2.57 | ) | 301,210 | 0.96 | 0.96 | 3.64 | 78 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 9.84 | 0.18 | (1.46 | ) | (1.28 | ) | (0.13 | ) | - | (0.10 | ) | (0.23 | ) | 8.33 | (13.20 | ) | 305,110 | 0.95 | 0.95 | 1.94 | 39 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 8.03 | 0.17 | 1.82 | 1.99 | (0.18 | ) | - | - | (0.18 | ) | 9.84 | 25.08 | 347,456 | 0.95 | 0.95 | 1.87 | 41 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 9.54 | 0.23 | (0.99 | ) | (0.76 | ) | (0.50 | ) | (0.25 | ) | - | (0.75 | ) | 8.03 | (8.34 | ) | 296,997 | 0.97 | 0.97 | 2.73 | 72 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 9.08 | 0.30 | 0.49 | 0.79 | (0.33 | ) | - | - | (0.33 | ) | 9.54 | 8.98 | 389,619 | 1.00 | 1.00 | 3.30 | 41 | |||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 7.91 | 0.17 | 0.12 | 0.29 | (0.16 | ) | - | - | (0.16 | ) | 8.04 | 3.77 | 1,280 | 0.91 | (d) | 0.92 | (d) | 4.23 | (d) | 17 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 8.33 | 0.29 | (0.49 | ) | (0.20 | ) | (0.22 | ) | - | - | (0.22 | ) | 7.91 | (2.38 | ) | 1,303 | 0.89 | 0.89 | 3.71 | 78 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 9.87 | 0.19 | (1.49 | ) | (1.30 | ) | (0.13 | ) | - | (0.11 | ) | (0.24 | ) | 8.33 | (13.41 | ) | 1,424 | 0.89 | 0.89 | 2.00 | 39 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 8.05 | 0.17 | 1.83 | 2.00 | (0.18 | ) | - | - | (0.18 | ) | 9.87 | 25.21 | 3,504 | 0.89 | 0.89 | 1.93 | 41 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 9.56 | 0.24 | (1.00 | ) | (0.76 | ) | (0.50 | ) | (0.25 | ) | - | (0.75 | ) | 8.05 | (8.27 | ) | 2,940 | 0.91 | 0.91 | 2.79 | 72 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 9.11 | 0.31 | 0.48 | 0.79 | (0.34 | ) | - | - | (0.34 | ) | 9.56 | 8.98 | 4,517 | 0.90 | 0.90 | 3.40 | 41 | |||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 7.92 | 0.17 | 0.13 | 0.30 | (0.17 | ) | - | - | (0.17 | ) | 8.05 | 3.81 | 198,550 | 0.84 | (d) | 0.85 | (d) | 4.30 | (d) | 17 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 8.35 | 0.30 | (0.51 | ) | (0.21 | ) | (0.22 | ) | - | - | (0.22 | ) | 7.92 | (2.42 | ) | 196,972 | 0.82 | 0.82 | 3.78 | 78 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 9.87 | 0.19 | (1.47 | ) | (1.28 | ) | (0.13 | ) | - | (0.11 | ) | (0.24 | ) | 8.35 | (13.14 | ) | 213,197 | 0.82 | 0.82 | 2.07 | 39 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 8.05 | 0.18 | 1.83 | 2.01 | (0.19 | ) | - | - | (0.19 | ) | 9.87 | 25.33 | 243,338 | 0.80 | 0.80 | 2.02 | 41 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 9.56 | 0.24 | (0.99 | ) | (0.75 | ) | (0.51 | ) | (0.25 | ) | - | (0.76 | ) | 8.05 | (8.17 | ) | 205,791 | 0.82 | 0.82 | 2.88 | 72 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 9.11 | 0.32 | 0.48 | 0.80 | (0.35 | ) | - | - | (0.35 | ) | 9.56 | 9.08 | 137,183 | 0.81 | 0.81 | 3.49 | 41 |
(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) | Annualized. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.24% for the year ended August 31, 2021. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Global Real Estate Income Fund |
February 29, 2024
(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 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 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 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 Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices 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, and their value may be adjusted accordingly. 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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). 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 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.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
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 mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally 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.
11 | Invesco Global Real Estate Income Fund |
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
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 an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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.
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, 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, 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 the ex-dividend date. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
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 based on relative net assets of Class R5 and Class R6. 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. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “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 |
12 | Invesco Global Real Estate Income Fund |
increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 29, 2024, fees paid to the Adviser were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
J. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at 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.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. 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.
K. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
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 exchange of the two currencies on the settlement date, 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).
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 for hedging 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.
L. | Other Risks – The Fund’s investments are concentrated in a comparatively narrow segment of the economy. Consequently, the Fund may tend to be more volatile than other mutual funds, and the value of the Fund’s investments may tend to rise and fall more rapidly. |
Because the Fund concentrates its assets in the real estate industry, an investment in the Fund will be closely linked to the performance of the real estate markets. Property values may fall due to increasing vacancies or declining rents resulting from economic, legal, cultural or technological developments.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. 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 | 0.750% | |||
| ||||
Next $250 million | 0.740% | |||
| ||||
Next $500 million | 0.730% | |||
| ||||
Next $1.5 billion | 0.720% | |||
| ||||
Next $2.5 billion | 0.710% | |||
| ||||
Next $2.5 billion | 0.700% | |||
| ||||
Next $2.5 billion | 0.690% | |||
| ||||
Over $10 billion | 0.680% | |||
|
For the six months ended February 29, 2024, the effective advisory fee rate incurred by the Fund was 0.74%.
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
13 | Invesco Global Real Estate Income Fund |
“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 agreed, for an indefinite period, 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 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 “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least June 30, 2025, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the six months ended February 29, 2024, the Adviser waived advisory fees of $16,353.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
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 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class 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 Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 29, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 29, 2024, IDI advised the Fund that IDI retained $1,921 in front-end sales commissions from the sale of Class A shares and $85 and $103 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the six months ended February 29, 2024, the Fund incurred $232 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. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of February 29, 2024. 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 Global Real Estate Income Fund |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Australia | $ | – | $ | 8,993,762 | $– | $ | 8,993,762 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Belgium | – | 2,876,488 | – | 2,876,488 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Canada | 23,958,164 | – | – | 23,958,164 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Cayman Islands | – | 12,527,962 | – | 12,527,962 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
France | – | 1,818,112 | – | 1,818,112 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Germany | – | 29,394,007 | – | 29,394,007 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Hong Kong | – | 22,895,749 | – | 22,895,749 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Japan | – | 34,688,755 | – | 34,688,755 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Singapore | – | 5,377,007 | – | 5,377,007 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Spain | – | 5,492,416 | – | 5,492,416 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
United Kingdom | – | 22,213,355 | – | 22,213,355 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
United States | 275,375,810 | 123,203,501 | 0 | 398,579,311 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Money Market Funds | 14,731,690 | 13,162,814 | – | 27,894,504 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Total Investments | $ | 314,065,664 | $ | 282,643,928 | $0 | $ | 596,709,592 | |||||||||||||||||||||
|
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 29, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $1,620.
NOTE 5–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees 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 at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 7–Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from 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 fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2023, as follows:
Capital Loss Carryforward* | ||||||||||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||||||||||
| ||||||||||||||||||||
Not subject to expiration | $ | 12,674,701 | $ | 16,470,612 | $ | 29,145,313 | ||||||||||||||
|
* | Capital loss carryforward 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. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 29, 2024 was $95,946,832 and $106,800,923, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
Aggregate unrealized appreciation of investments | $ | 38,616,164 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (49,112,409 | ) | ||
| ||||
Net unrealized appreciation (depreciation) of investments | $ | (10,496,245 | ) | |
|
Cost of investments for tax purposes is $607,205,837.
15 | Invesco Global Real Estate Income Fund |
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended February 29, 2024(a) | Year ended August 31, 2023 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 357,338 | $ | 2,847,849 | 784,402 | $ | 6,219,838 | ||||||||||
| ||||||||||||||||
Class C | 13,816 | 107,607 | 28,186 | 220,521 | ||||||||||||
| ||||||||||||||||
Class Y | 7,035,249 | 55,018,164 | 12,424,655 | 98,941,273 | ||||||||||||
| ||||||||||||||||
Class R5 | 23,945 | 190,230 | 16,810 | 134,803 | ||||||||||||
| ||||||||||||||||
Class R6 | 224,532 | 1,772,385 | 2,029,257 | 15,881,336 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 182,515 | 1,449,988 | 235,482 | 1,838,951 | ||||||||||||
| ||||||||||||||||
Class C | 4,544 | 36,198 | 6,984 | 54,587 | ||||||||||||
| ||||||||||||||||
Class Y | 693,734 | 5,481,993 | 804,678 | 6,254,788 | ||||||||||||
| ||||||||||||||||
Class R5 | 3,329 | 26,270 | 4,302 | 33,482 | ||||||||||||
| ||||||||||||||||
Class R6 | 515,692 | 4,076,333 | 705,982 | 5,503,062 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 31,789 | 248,415 | 145,994 | 1,139,001 | ||||||||||||
| ||||||||||||||||
Class C | (31,808 | ) | (248,415 | ) | (146,042 | ) | (1,139,001 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (1,376,402 | ) | (10,816,992 | ) | (3,269,658 | ) | (25,766,521 | ) | ||||||||
| ||||||||||||||||
Class C | (57,382 | ) | (463,422 | ) | (165,030 | ) | (1,316,679 | ) | ||||||||
| ||||||||||||||||
Class Y | (9,401,749 | ) | (75,785,347 | ) | (11,761,099 | ) | (92,018,396 | ) | ||||||||
| ||||||||||||||||
Class R5 | (32,714 | ) | (258,064 | ) | (27,254 | ) | (211,931 | ) | ||||||||
| ||||||||||||||||
Class R6 | (945,917 | ) | (7,641,586 | ) | (3,414,415 | ) | (26,945,371 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (2,759,489 | ) | $ | (23,958,394 | ) | (1,596,766 | ) | $ | (11,176,257 | ) | ||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 37% 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, 23% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser.
16 | 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, 2023 through February 29, 2024.
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 (09/01/23) | Ending Account Value (02/29/24)1 | Expenses Paid During Period2 | Ending Account Value (02/29/24) | Expenses Paid During Period2 | ||||||||||
Class A | $1,000.00 | $1,035.80 | $6.38 | $1,018.60 | $6.32 | 1.26% | ||||||||
Class C | 1,000.00 | 1,031.90 | 10.15 | 1,014.87 | 10.07 | 2.01 | ||||||||
Class Y | 1,000.00 | 1,037.20 | 5.12 | 1,019.84 | 5.07 | 1.01 | ||||||||
Class R5 | 1,000.00 | 1,037.70 | 4.61 | 1,020.34 | 4.57 | 0.91 | ||||||||
Class R6 | 1,000.00 | 1,038.10 | 4.26 | 1,020.69 | 4.22 | 0.84 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2023 through February 29, 2024, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
17 | Invesco Global Real Estate Income Fund |
A Special Joint Meeting (“Meeting”) of Shareholders of AIM Counselor Series Trust (Invesco Counselor Series Trust), a Delaware statutory trust (“Trust”), was held on January 16, 2024. The Meeting was held for the following purpose:
(1) Elect 14 trustees to the Board of Trustees of the Trust, each of whom will serve until his or her successor is duly elected and qualified.
The results of the voting on the above matter were as follows:
Matter | Votes For | Votes Against/Withheld | ||||||||||
(1)* | Beth Ann Brown | 3,109,848,785.61 | 65,706,470.15 | |||||||||
Carol Deckbar | 3,109,186,378.07 | 66,368,877.70 | ||||||||||
Cynthia Hostetler | 3,108,148,647.37 | 67,406,608.40 | ||||||||||
Dr. Eli Jones | 3,106,962,123.35 | 68,593,132.42 | ||||||||||
Elizabeth Krentzman | 3,109,153,762.02 | 66,401,493.75 | ||||||||||
Jeffrey H. Kupor | 3,109,094,174.85 | 66,461,080.92 | ||||||||||
Anthony J. LaCava, Jr. | 3,107,453,603.09 | 68,101,652.67 | ||||||||||
James Liddy | 3,108,418,832.17 | 67,136,423.60 | ||||||||||
Dr. Prema Mathai-Davis | 3,100,922,564.57 | 74,632,691.20 | ||||||||||
Joel W. Motley | 3,104,496,522.60 | 71,058,733.17 | ||||||||||
Teresa M. Ressel | 3,109,248,693.76 | 66,306,562.01 | ||||||||||
Douglas Sharp | 3,108,681,578.09 | 66,873,677.67 | ||||||||||
Robert C. Troccoli | 3,104,038,320.81 | 71,516,934.96 | ||||||||||
Daniel S. Vandivort | 3,106,373,978.14 | 69,181,277.62 |
* Proposal 1 required approval by a combined vote of all the portfolios of AIM Counselor Series Trust (Invesco Counselor Series Trust).
18 | Invesco Global Real Estate Income Fund |
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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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, 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/corporate/about-us/esg. 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. This 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 number(s): 811-09913 and 333-36074 | Invesco Distributors, Inc. | GREI-SAR-1 |
Semiannual Report to Shareholders | February 29, 2024 |
Invesco Growth and Income Fund
Nasdaq:
A: ACGIX ∎ C: ACGKX ∎ R: ACGLX ∎ Y: ACGMX ∎ R5: ACGQX ∎ R6: GIFFX
2 | Fund Performance | |
4 | Schedule of Investments | |
8 | Financial Statements | |
11 | Financial Highlights | |
12 | Notes to Financial Statements | |
18 | Fund Expenses | |
19 | Proxy Results |
Beginning in July 2024, amendments adopted by the Securities and Exchange Commission will substantially impact the design, content, and delivery of shareholder reports. These newly designed shareholder reports will highlight key fund information in a clear and concise format and must be mailed to each shareholder that has not elected to receive the reports electronically. Other information, including financial statements, will no longer be included in the shareholder report but will be available at invesco.com/reports, delivered upon request, and filed on a semi-annual basis on Form N-CSR.
If you would like to receive shareholder reports and other communications electronically instead of by mail, you may make that request 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. If you do not make this request or enroll in e-delivery, you will receive future shareholder reports and other communications by mail.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is 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, 8/31/23 to 2/29/24, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 12.31 | % | ||
Class C Shares | 11.84 | |||
Class R Shares | 12.14 | |||
Class Y Shares | 12.45 | |||
Class R5 Shares | 12.40 | |||
Class R6 Shares | 12.44 | |||
S&P 500 Index▼ (Broad Market Index) | 13.93 | |||
Russell 1000 Value Index▼ (Style-Specific Index) | 9.27 | |||
Lipper Large-Cap Value Funds Index∎ (Peer Group Index) | 12.02 | |||
Source(s): ▼RIMES Technologies Corp.; ∎Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the US stock market. The Russell 1000® Value Index is an unmanaged index considered represenative of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. The Lipper Large-Cap Value Funds Index is an unmanaged index considered representative of large-cap value funds tracked by Lipper. The Fund is not managed to track the performance of any particular index, including the indexes 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 visiting invesco.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, visit blog.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 2/29/24, including maximum applicable sales charges |
| |||
Class A Shares |
| |||
Inception (8/1/46) | 9.41 | % | ||
10 Years | 8.01 | |||
5 Years | 8.90 | |||
1 Year | 8.88 | |||
Class C Shares |
| |||
Inception (8/2/93) | 9.43 | % | ||
10 Years | 8.00 | |||
5 Years | 9.36 | |||
1 Year | 13.37 | |||
Class R Shares |
| |||
Inception (10/1/02) | 8.91 | % | ||
10 Years | 8.35 | |||
5 Years | 9.88 | |||
1 Year | 14.93 | |||
Class Y Shares |
| |||
Inception (10/19/04) | 8.69 | % | ||
10 Years | 8.90 | |||
5 Years | 10.43 | |||
1 Year | 15.54 | |||
Class R5 Shares |
| |||
Inception (6/1/10) | 11.16 | % | ||
10 Years | 8.98 | |||
5 Years | 10.49 | |||
1 Year | 15.51 | |||
Class R6 Shares |
| |||
Inception (9/24/12) | 10.78 | % | ||
10 Years | 9.07 | |||
5 Years | 10.58 | |||
1 Year | 15.59 |
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 those for Class A, Class C, Class R and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
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 a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 | Invesco Growth and Income Fund |
February 29, 2024
(Unaudited)
Shares | Value | |||||||
Common Stocks & Other Equity Interests-97.87% |
| |||||||
Aerospace & Defense-2.46% |
| |||||||
RTX Corp. | 669,244 | $ | 60,011,110 | |||||
Textron, Inc. | 442,511 | 39,414,455 | ||||||
99,425,565 | ||||||||
Air Freight & Logistics-1.16% |
| |||||||
FedEx Corp. | 188,166 | 46,847,689 | ||||||
Apparel Retail-0.70% |
| |||||||
TJX Cos., Inc. (The) | 285,119 | 28,266,698 | ||||||
Application Software-1.39% |
| |||||||
Salesforce, Inc.(b) | 181,172 | 55,949,537 | ||||||
Asset Management & Custody Banks-1.66% |
| |||||||
KKR & Co., Inc., Class A | 683,113 | 67,122,683 | ||||||
Automobile Manufacturers-1.20% |
| |||||||
General Motors Co. | 1,177,652 | 48,260,179 | ||||||
Broadline Retail-2.24% |
| |||||||
Amazon.com, Inc.(b) | 511,255 | 90,369,434 | ||||||
Building Products-1.83% |
| |||||||
Johnson Controls International PLC | 1,244,946 | 73,787,949 | ||||||
Cable & Satellite-0.76% |
| |||||||
Comcast Corp., Class A | 719,329 | 30,823,248 | ||||||
Cargo Ground Transportation-0.83% |
| |||||||
J.B. Hunt Transport Services, Inc.(c) | 162,290 | 33,482,050 | ||||||
Casinos & Gaming-1.04% |
| |||||||
Las Vegas Sands Corp. | 772,072 | 42,093,365 | ||||||
Communications Equipment-1.54% |
| |||||||
Cisco Systems, Inc. | 1,285,725 | 62,190,518 | ||||||
Consumer Finance-0.97% |
| |||||||
American Express Co. | 178,607 | 39,189,948 | ||||||
Distributors-1.00% |
| |||||||
Genuine Parts Co. | 271,758 | 40,562,599 | ||||||
Diversified Banks-8.74% |
| |||||||
Bank of America Corp. | 3,647,517 | 125,912,287 | ||||||
PNC Financial Services Group, Inc. (The) | 397,839 | 58,561,901 | ||||||
Wells Fargo & Co. | 3,029,822 | 168,427,805 | ||||||
352,901,993 | ||||||||
Electric Utilities-2.97% |
| |||||||
American Electric Power Co., Inc. | 484,316 | 41,258,880 | ||||||
FirstEnergy Corp. | 901,458 | 33,002,378 | ||||||
PPL Corp. | 1,730,801 | 45,641,222 | ||||||
119,902,480 | ||||||||
Electrical Components & Equipment-1.00% |
| |||||||
Emerson Electric Co. | 377,853 | 40,373,593 |
Shares | Value | |||||||
Electronic Manufacturing Services-0.99% |
| |||||||
TE Connectivity Ltd. | 279,178 | $ | 40,078,794 | |||||
Fertilizers & Agricultural Chemicals-0.74% |
| |||||||
Corteva, Inc. | 558,679 | 29,900,500 | ||||||
Food Distributors-2.34% |
| |||||||
Sysco Corp. | 676,831 | 54,803,006 | ||||||
US Foods Holding Corp.(b) | 781,829 | 39,709,095 | ||||||
94,512,101 | ||||||||
Gold-0.62% |
| |||||||
Barrick Gold Corp. (Canada) | 1,700,036 | 24,922,528 | ||||||
Health Care Equipment-2.58% |
| |||||||
GE HealthCare Technologies, Inc. | 424,238 | 38,724,445 | ||||||
Medtronic PLC | 784,347 | 65,383,166 | ||||||
104,107,611 | ||||||||
Health Care Facilities-0.71% |
| |||||||
Universal Health Services, Inc., Class B | 170,573 | 28,495,925 | ||||||
Health Care Services-2.28% |
| |||||||
Cigna Group (The) | 156,984 | 52,768,602 | ||||||
CVS Health Corp. | 528,647 | 39,315,477 | ||||||
92,084,079 | ||||||||
Industrial Machinery & Supplies & Components–2.62% |
| |||||||
Parker-Hannifin Corp. | 136,429 | 73,050,908 | ||||||
Stanley Black & Decker, Inc. | 367,647 | 32,827,201 | ||||||
105,878,109 | ||||||||
Insurance Brokers–1.79% |
| |||||||
Willis Towers Watson PLC | 265,444 | 72,362,689 | ||||||
Integrated Oil & Gas–5.45% |
| |||||||
Chevron Corp.(c) | 391,595 | 59,526,356 | ||||||
Exxon Mobil Corp. | 816,218 | 85,311,105 | ||||||
Shell PLC (Netherlands) | 1,198,107 | 37,057,223 | ||||||
Suncor Energy, Inc. (Canada)(c) | 1,110,434 | 38,153,143 | ||||||
220,047,827 | ||||||||
Interactive Media & Services–3.43% |
| |||||||
Alphabet, Inc., Class A(b) | 641,167 | 88,775,983 | ||||||
Meta Platforms, Inc., Class A | 101,694 | 49,843,280 | ||||||
138,619,263 | ||||||||
Investment Banking & Brokerage–3.04% |
| |||||||
Charles Schwab Corp. (The) | 787,092 | 52,562,004 | ||||||
Goldman Sachs Group, Inc. (The) | 180,242 | 70,123,150 | ||||||
122,685,154 | ||||||||
IT Consulting & Other Services–1.39% |
| |||||||
Cognizant Technology Solutions Corp., Class A | 707,965 | 55,943,394 | ||||||
Managed Health Care–2.84% |
| |||||||
Centene Corp.(b) | 702,841 | 55,123,819 | ||||||
Elevance Health, Inc. | 62,887 | 31,522,109 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 | Invesco Growth and Income Fund |
Shares | Value | |||||||
Managed Health Care–(continued) |
| |||||||
Humana, Inc. | 80,324 | $ | 28,139,104 | |||||
114,785,032 | ||||||||
Movies & Entertainment–1.45% | ||||||||
Walt Disney Co. (The) | 526,122 | 58,704,693 | ||||||
Multi-line Insurance–1.90% | ||||||||
American International Group, Inc. | 1,053,812 | 76,812,357 | ||||||
Oil & Gas Exploration & Production–2.30% |
| |||||||
ConocoPhillips | 825,930 | 92,950,162 | ||||||
Oil & Gas Refining & Marketing–0.79% |
| |||||||
Phillips 66 | 222,750 | 31,744,102 | ||||||
Packaged Foods & Meats–1.03% | ||||||||
Kraft Heinz Co. (The) | 1,180,042 | 41,631,882 | ||||||
Pharmaceuticals–7.07% | ||||||||
Bristol-Myers Squibb Co. | 1,020,074 | 51,768,755 | ||||||
GSK PLC | 1,694,081 | 35,437,530 | ||||||
Johnson & Johnson | 469,757 | 75,809,385 | ||||||
Merck & Co., Inc. | 370,439 | 47,101,319 | ||||||
Pfizer, Inc. | 1,062,161 | 28,210,996 | ||||||
Sanofi S.A. | 496,550 | 47,328,431 | ||||||
285,656,416 | ||||||||
Property & Casualty Insurance–1.16% |
| |||||||
Allstate Corp. (The) | 293,385 | 46,800,775 | ||||||
Rail Transportation–2.01% | ||||||||
CSX Corp. | 1,401,034 | 53,155,230 | ||||||
Norfolk Southern Corp. | 110,695 | 28,047,899 | ||||||
81,203,129 | ||||||||
Real Estate Services–2.48% | ||||||||
CBRE Group, Inc., Class A(b) | 1,090,974 | 100,249,601 | ||||||
Regional Banks–1.17% | ||||||||
Citizens Financial Group, Inc. | 1,502,253 | 47,155,722 | ||||||
Semiconductor Materials & Equipment–1.02% |
| |||||||
Lam Research Corp. | 43,685 | 40,987,451 | ||||||
Semiconductors–3.59% | ||||||||
Intel Corp. | 1,339,175 | 57,651,484 | ||||||
Micron Technology, Inc. | 487,954 | 44,213,512 | ||||||
NXP Semiconductors N.V. (China) | 173,162 | 43,243,746 | ||||||
145,108,742 |
Shares | Value | |||||||
Specialty Chemicals–1.70% | ||||||||
DuPont de Nemours, Inc. | 594,055 | $ | 41,102,665 | |||||
PPG Industries, Inc. | 193,231 | 27,361,510 | ||||||
68,464,175 | ||||||||
Systems Software–1.33% | ||||||||
Oracle Corp. | 480,653 | 53,679,327 | ||||||
Tobacco–1.62% | ||||||||
Philip Morris International, Inc. | 724,935 | 65,215,153 | ||||||
Trading Companies & Distributors–1.65% |
| |||||||
Ferguson PLC | 315,117 | 66,631,490 | ||||||
Transaction & Payment Processing Services–1.74% |
| |||||||
Fiserv, Inc.(b) | 471,386 | 70,363,788 | ||||||
Wireless Telecommunication Services–1.55% |
| |||||||
T-Mobile US, Inc. | 383,148 | 62,568,068 | ||||||
Total Common Stocks & Other Equity Interests (Cost $2,807,884,761) |
| 3,951,899,567 | ||||||
| ||||||||
Money Market Funds–1.96% | ||||||||
Invesco Government & Agency Portfolio, Institutional Class, 5.24%(d)(e) | 27,647,861 | 27,647,861 | ||||||
| ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 5.41%(d)(e) | 19,743,248 | 19,753,119 | ||||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 5.23%(d)(e) | 31,597,555 | 31,597,555 | ||||||
| ||||||||
Total Money Market Funds |
| 78,998,535 | ||||||
TOTAL INVESTMENTS IN SECURITIES |
| 4,030,898,102 | ||||||
| ||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds–2.01% |
| |||||||
Invesco Private Government Fund, 5.29%(d)(e)(f) | 22,759,820 | 22,759,820 | ||||||
| ||||||||
Invesco Private Prime Fund, | 58,496,006 | 58,525,254 | ||||||
| ||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $81,288,185) |
| 81,285,074 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES–101.84% |
| 4,112,183,176 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES–(1.84)% |
| (74,283,607 | ) | |||||
| ||||||||
NET ASSETS–100.00% |
| $ | 4,037,899,569 | |||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Growth and Income Fund |
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at February 29, 2024. |
(d) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 29, 2024. |
Value August 31, 2023 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value February 29, 2024 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ | 25,782,759 | $ | 118,782,120 | $ | (116,917,018 | ) | $ | - | $ | - | $ | 27,647,861 | $ | 666,453 | |||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 18,413,442 | 84,844,372 | (83,512,155 | ) | 1,649 | 5,811 | 19,753,119 | 490,645 | ||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 29,466,010 | 135,750,995 | (133,619,450 | ) | - | - | 31,597,555 | 760,184 | ||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | ||||||||||||||||||||||||||||
Invesco Private Government Fund | 1,200,912 | 158,429,092 | (136,870,184 | ) | - | - | 22,759,820 | 210,792* | ||||||||||||||||||||
Invesco Private Prime Fund | 3,088,061 | 339,582,004 | (284,161,990 | ) | (3,111 | ) | 20,290 | 58,525,254 | 562,528* | |||||||||||||||||||
Total | $ | 77,951,184 | $ | 837,388,583 | $ | (755,080,797 | ) | $ | (1,462 | ) | $ | 26,101 | $ | 160,283,609 | $ | 2,690,602 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(e) | The rate shown is the 7-day SEC standardized yield as of February 29, 2024. |
(f) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
Open Forward Foreign Currency Contracts | ||||||||||||||||||||||||||||
Settlement Date | Counterparty | Contract to | Unrealized (Depreciation) | |||||||||||||||||||||||||
Deliver | Receive | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
03/05/2024 | Bank of New York Mellon (The) | EUR | 35,081,327 | USD | 38,122,913 | $ | 205,560 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
03/05/2024 | State Street Bank & Trust Co. | CAD | 39,887,393 | USD | 29,762,115 | 369,840 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
03/05/2024 | State Street Bank & Trust Co. | EUR | 1,120,962 | USD | 1,213,207 | 1,625 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
03/05/2024 | State Street Bank & Trust Co. | GBP | 43,326,802 | USD | 55,125,386 | 433,706 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
03/05/2024 | State Street Bank & Trust Co. | USD | 3,402,619 | EUR | 3,154,404 | 6,791 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
03/05/2024 | State Street Bank & Trust Co. | USD | 910,713 | GBP | 722,634 | 1,472 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
04/05/2024 | State Street Bank & Trust Co. | CAD | 37,768,637 | USD | 27,949,233 | 105,501 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
04/05/2024 | State Street Bank & Trust Co. | EUR | 33,047,885 | USD | 35,924,968 | 160,294 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
04/05/2024 | State Street Bank & Trust Co. | GBP | 43,270,443 | USD | 54,925,596 | 294,775 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Subtotal–Appreciation | 1,579,564 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
03/05/2024 | State Street Bank & Trust Co. | GBP | 666,275 | USD | 839,296 | (1,747 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
03/05/2024 | State Street Bank & Trust Co. | USD | 29,505,676 | CAD | 39,887,393 | (113,400 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
03/05/2024 | State Street Bank & Trust Co. | USD | 35,878,437 | EUR | 33,047,885 | (158,912 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
03/05/2024 | State Street Bank & Trust Co. | USD | 54,914,519 | GBP | 43,270,443 | (293,981 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Subtotal–Depreciation | (568,040 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Total Forward Foreign Currency Contracts | $ | 1,011,524 | ||||||||||||||||||||||||||
|
Abbreviations:
CAD –Canadian Dollar
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.
6 | Invesco Growth and Income Fund |
Portfolio Composition
By sector, based on Net Assets
as of February 29, 2024
Financials | 22.18 | % | ||
Health Care | 15.48 | |||
Industrials | 13.56 | |||
Information Technology | 11.24 | |||
Energy | 8.54 | |||
Communication Services | 7.20 | |||
Consumer Discretionary | 6.18 | |||
Consumer Staples | 4.99 | |||
Materials | 3.05 | |||
Utilities | 2.97 | |||
Real Estate | 2.48 | |||
Money Market Funds Plus Other Assets Less Liabilities | 2.13 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Growth and Income Fund |
Statement of Assets and Liabilities
February 29, 2024
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value (Cost $2,807,884,761)* | $ | 3,951,899,567 | ||
| ||||
Investments in affiliated money market funds, at value (Cost $160,285,071) | 160,283,609 | |||
| ||||
Other investments: | ||||
Unrealized appreciation on forward foreign currency contracts outstanding | 1,579,564 | |||
| ||||
Foreign currencies, at value (Cost $4,624) | 4,620 | |||
| ||||
Receivable for: | ||||
Investments sold | 4,745,673 | |||
| ||||
Fund shares sold | 1,207,395 | |||
| ||||
Dividends | 10,872,270 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 520,222 | |||
| ||||
Other assets | 92,969 | |||
| ||||
Total assets | 4,131,205,889 | |||
| ||||
Liabilities: | ||||
Other investments: | ||||
Unrealized depreciation on forward foreign currency contracts outstanding | 568,040 | |||
| ||||
Payable for: | ||||
Investments purchased | 4,241,567 | |||
| ||||
Fund shares reacquired | 4,957,444 | |||
| ||||
Collateral upon return of securities loaned | 81,288,185 | |||
| ||||
Accrued fees to affiliates | 1,463,922 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 2,635 | |||
| ||||
Accrued other operating expenses | 215,140 | |||
| ||||
Trustee deferred compensation and retirement plans | 569,387 | |||
| ||||
Total liabilities | 93,306,320 | |||
| ||||
Net assets applicable to shares outstanding | $ | 4,037,899,569 | ||
| ||||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 2,806,034,533 | ||
| ||||
Distributable earnings | 1,231,865,036 | |||
| ||||
$ | 4,037,899,569 | |||
|
Net Assets: | ||||
Class A | $ | 2,548,564,336 | ||
| ||||
Class C | $ | 30,194,952 | ||
| ||||
Class R | $ | 57,126,079 | ||
| ||||
Class Y | $ | 351,647,530 | ||
| ||||
Class R5 | $ | 242,065,461 | ||
| ||||
Class R6 | $ | 808,301,211 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 119,946,869 | |||
| ||||
Class C | 1,455,184 | |||
| ||||
Class R | 2,683,356 | |||
| ||||
Class Y | 16,536,196 | |||
| ||||
Class R5 | 11,362,801 | |||
| ||||
Class R6 | 37,940,149 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 21.25 | ||
| ||||
Maximum offering price per share | $ | 22.49 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 20.75 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 21.29 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 21.27 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 21.30 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 21.30 | ||
|
* | At February 29, 2024, securities with an aggregate value of $79,218,120 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Growth and Income Fund |
Statement of Operations
For the six months ended February 29, 2024
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $174,563) | $ | 41,231,335 | ||
| ||||
Dividends from affiliated money market funds (includes net securities lending income of $51,424) | 1,968,706 | |||
| ||||
Total investment income | 43,200,041 | |||
| ||||
Expenses: | ||||
Advisory fees | 6,949,247 | |||
| ||||
Administrative services fees | 269,833 | |||
| ||||
Custodian fees | 15,821 | |||
| ||||
Distribution fees: | ||||
Class A | 3,002,436 | |||
| ||||
Class C | 145,446 | |||
| ||||
Class R | 134,246 | |||
| ||||
Transfer agent fees - A, C, R and Y | 2,063,960 | |||
| ||||
Transfer agent fees - R5 | 112,324 | |||
| ||||
Transfer agent fees - R6 | 122,124 | |||
| ||||
Trustees’ and officers’ fees and benefits | 30,325 | |||
| ||||
Registration and filing fees | 63,710 | |||
| ||||
Reports to shareholders | 481,634 | |||
| ||||
Professional services fees | 50,305 | |||
| ||||
Other | 49,607 | |||
| ||||
Total expenses | 13,491,018 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (56,883 | ) | ||
| ||||
Net expenses | 13,434,135 | |||
| ||||
Net investment income | 29,765,906 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain from: | ||||
Unaffiliated investment securities | 196,277,509 | |||
| ||||
Affiliated investment securities | 26,101 | |||
| ||||
Foreign currencies | 43,024 | |||
| ||||
Forward foreign currency contracts | 1,717,825 | |||
| ||||
198,064,459 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | 228,545,812 | |||
| ||||
Affiliated investment securities | (1,462 | ) | ||
| ||||
Foreign currencies | (1,789 | ) | ||
| ||||
Forward foreign currency contracts | 499,599 | |||
| ||||
229,042,160 | ||||
| ||||
Net realized and unrealized gain | 427,106,619 | |||
| ||||
Net increase in net assets resulting from operations | $ | 456,872,525 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Growth and Income Fund |
Statement of Changes in Net Assets
For the six months ended February 29, 2024 and the year ended August 31, 2023
(Unaudited)
February 29, 2024 | August 31, 2023 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 29,765,906 | $ | 70,305,122 | ||||
| ||||||||
Net realized gain | 198,064,459 | 413,678,602 | ||||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 229,042,160 | (156,674,314 | ) | |||||
| ||||||||
Net increase in net assets resulting from operations | 456,872,525 | 327,309,410 | ||||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (283,736,211 | ) | (278,048,140 | ) | ||||
| ||||||||
Class C | (3,378,162 | ) | (3,399,405 | ) | ||||
| ||||||||
Class R | (6,253,258 | ) | (5,572,665 | ) | ||||
| ||||||||
Class Y | (40,443,961 | ) | (47,847,695 | ) | ||||
| ||||||||
Class R5 | (26,418,823 | ) | (46,057,592 | ) | ||||
| ||||||||
Class R6 | (96,516,178 | ) | (92,701,026 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (456,746,593 | ) | (473,626,523 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | 109,561,614 | 25,839,646 | ||||||
| ||||||||
Class C | 429,788 | (1,406,441 | ) | |||||
| ||||||||
Class R | 3,758,781 | 3,617,666 | ||||||
| ||||||||
Class Y | 2,186,633 | (59,848,236 | ) | |||||
| ||||||||
Class R5 | (87,759,428 | ) | (52,597,046 | ) | ||||
| ||||||||
Class R6 | 5,358,033 | (104,881,583 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | 33,535,421 | (189,275,994 | ) | |||||
| ||||||||
Net increase (decrease) in net assets | 33,661,353 | (335,593,107 | ) | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 4,004,238,216 | 4,339,831,323 | ||||||
| ||||||||
End of period | $ | 4,037,899,569 | $ | 4,004,238,216 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Growth and Income Fund |
(Unaudited)
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 02/29/24 | $ | 21.37 | $ | 0.15 | $ | 2.29 | $ | 2.44 | $ | (0.18 | ) | $ | (2.38 | ) | $ | (2.56 | ) | $ | 21.25 | 12.31 | % | $ | 2,548,564 | 0.81 | %(d) | 0.81 | %(d) | 1.43 | %(d) | 13 | % | |||||||||||||||||||||||||
Year ended 08/31/23 | 22.20 | 0.33 | 1.36 | 1.69 | (0.38 | ) | (2.14 | ) | (2.52 | ) | 21.37 | 8.00 | 2,438,756 | 0.79 | 0.79 | 1.57 | 21 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 28.10 | 0.32 | (1.13 | ) | (0.81 | ) | (0.29 | ) | (4.80 | ) | (5.09 | ) | 22.20 | (3.90 | ) | 2,499,911 | 0.78 | 0.78 | 1.28 | 23 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 20.01 | 0.30 | 8.63 | 8.93 | (0.35 | ) | (0.49 | ) | (0.84 | ) | 28.10 | 45.62 | 2,844,145 | 0.80 | 0.80 | 1.22 | 33 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 22.89 | 0.41 | (1.24 | ) | (0.83 | ) | (0.44 | ) | (1.61 | ) | (2.05 | ) | 20.01 | (4.39 | ) | 2,609,002 | 0.81 | 0.81 | 1.97 | 26 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 27.50 | 0.44 | (2.02 | ) | (1.58 | ) | (0.43 | ) | (2.60 | ) | (3.03 | ) | 22.89 | (4.99 | ) | 3,386,466 | 0.81 | 0.81 | 1.84 | 23 | ||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 20.93 | 0.07 | 2.23 | 2.30 | (0.10 | ) | (2.38 | ) | (2.48 | ) | 20.75 | 11.84 | 30,195 | 1.56 | (d) | 1.56 | (d) | 0.68 | (d) | 13 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 21.77 | 0.18 | 1.33 | 1.51 | (0.21 | ) | (2.14 | ) | (2.35 | ) | 20.93 | 7.25 | (e) | 29,875 | 1.52 | (e) | 1.52 | (e) | 0.84 | (e) | 21 | |||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 27.69 | 0.13 | (1.09 | ) | (0.96 | ) | (0.16 | ) | (4.80 | ) | (4.96 | ) | 21.77 | (4.58 | )(e) | 32,497 | 1.52 | (e) | 1.52 | (e) | 0.54 | (e) | 23 | |||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 19.73 | 0.12 | 8.51 | 8.63 | (0.18 | ) | (0.49 | ) | (0.67 | ) | 27.69 | 44.53 | (e) | 39,357 | 1.50 | (e) | 1.50 | (e) | 0.52 | (e) | 33 | |||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 22.57 | 0.25 | (1.20 | ) | (0.95 | ) | (0.28 | ) | (1.61 | ) | (1.89 | ) | 19.73 | (5.05 | ) | 38,808 | 1.56 | 1.56 | 1.22 | 26 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 27.15 | 0.27 | (2.00 | ) | (1.73 | ) | (0.25 | ) | (2.60 | ) | (2.85 | ) | 22.57 | (5.67 | )(e) | 76,522 | 1.53 | (e) | 1.53 | (e) | 1.12 | (e) | 23 | |||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 21.41 | 0.12 | 2.29 | 2.41 | (0.15 | ) | (2.38 | ) | (2.53 | ) | 21.29 | 12.14 | 57,126 | 1.06 | (d) | 1.06 | (d) | 1.18 | (d) | 13 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 22.23 | 0.28 | 1.36 | 1.64 | (0.32 | ) | (2.14 | ) | (2.46 | ) | 21.41 | 7.75 | 53,250 | 1.04 | 1.04 | 1.32 | 21 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 28.13 | 0.25 | (1.13 | ) | (0.88 | ) | (0.22 | ) | (4.80 | ) | (5.02 | ) | 22.23 | (4.14 | ) | 51,354 | 1.03 | 1.03 | 1.03 | 23 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 20.03 | 0.24 | 8.64 | 8.88 | (0.29 | ) | (0.49 | ) | (0.78 | ) | 28.13 | 45.26 | 60,808 | 1.05 | 1.05 | 0.97 | 33 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 22.90 | 0.36 | (1.23 | ) | (0.87 | ) | (0.39 | ) | (1.61 | ) | (2.00 | ) | 20.03 | (4.60 | ) | 61,342 | 1.06 | 1.06 | 1.72 | 26 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 27.52 | 0.38 | (2.03 | ) | (1.65 | ) | (0.37 | ) | (2.60 | ) | (2.97 | ) | 22.90 | (5.27 | ) | 84,224 | 1.06 | 1.06 | 1.59 | 23 | ||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 21.39 | 0.17 | 2.29 | 2.46 | (0.20 | ) | (2.38 | ) | (2.58 | ) | 21.27 | 12.45 | 351,648 | 0.56 | (d) | 0.56 | (d) | 1.68 | (d) | 13 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 22.22 | 0.39 | 1.35 | 1.74 | (0.43 | ) | (2.14 | ) | (2.57 | ) | 21.39 | 8.28 | 349,894 | 0.54 | 0.54 | 1.82 | 21 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 28.12 | 0.38 | (1.12 | ) | (0.74 | ) | (0.36 | ) | (4.80 | ) | (5.16 | ) | 22.22 | (3.63 | ) | 427,166 | 0.53 | 0.53 | 1.53 | 23 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 20.03 | 0.36 | 8.63 | 8.99 | (0.41 | ) | (0.49 | ) | (0.90 | ) | 28.12 | 45.94 | 517,664 | 0.55 | 0.55 | 1.47 | 33 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 22.91 | 0.47 | (1.24 | ) | (0.77 | ) | (0.50 | ) | (1.61 | ) | (2.11 | ) | 20.03 | (4.12 | ) | 477,858 | 0.56 | 0.56 | 2.22 | 26 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 27.53 | 0.50 | (2.03 | ) | (1.53 | ) | (0.49 | ) | (2.60 | ) | (3.09 | ) | 22.91 | (4.78 | ) | 938,866 | 0.56 | 0.56 | 2.09 | 23 | ||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 21.43 | 0.18 | 2.28 | 2.46 | (0.21 | ) | (2.38 | ) | (2.59 | ) | 21.30 | 12.40 | 242,065 | 0.51 | (d) | 0.51 | (d) | 1.73 | (d) | 13 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 22.25 | 0.40 | 1.36 | 1.76 | (0.44 | ) | (2.14 | ) | (2.58 | ) | 21.43 | 8.36 | 329,238 | 0.49 | 0.49 | 1.87 | 21 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 28.16 | 0.39 | (1.13 | ) | (0.74 | ) | (0.37 | ) | (4.80 | ) | (5.17 | ) | 22.25 | (3.62 | ) | 397,345 | 0.48 | 0.48 | 1.58 | 23 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 20.06 | 0.38 | 8.64 | 9.02 | (0.43 | ) | (0.49 | ) | (0.92 | ) | 28.16 | 46.04 | 438,989 | 0.47 | 0.47 | 1.55 | 33 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 22.94 | 0.49 | (1.24 | ) | (0.75 | ) | (0.52 | ) | (1.61 | ) | (2.13 | ) | 20.06 | (4.03 | ) | 443,315 | 0.48 | 0.48 | 2.30 | 26 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 27.56 | 0.52 | (2.03 | ) | (1.51 | ) | (0.51 | ) | (2.60 | ) | (3.11 | ) | 22.94 | (4.70 | ) | 746,385 | 0.48 | 0.48 | 2.17 | 23 | ||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 21.43 | 0.19 | 2.28 | 2.47 | (0.22 | ) | (2.38 | ) | (2.60 | ) | 21.30 | 12.44 | 808,301 | 0.44 | (d) | 0.44 | (d) | 1.80 | (d) | 13 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 22.25 | 0.41 | 1.37 | 1.78 | (0.46 | ) | (2.14 | ) | (2.60 | ) | 21.43 | 8.45 | 803,225 | 0.42 | 0.42 | 1.94 | 21 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 28.16 | 0.41 | (1.13 | ) | (0.72 | ) | (0.39 | ) | (4.80 | ) | (5.19 | ) | 22.25 | (3.55 | ) | 931,558 | 0.41 | 0.41 | 1.65 | 23 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 20.06 | 0.39 | 8.65 | 9.04 | (0.45 | ) | (0.49 | ) | (0.94 | ) | 28.16 | 46.16 | 1,102,312 | 0.40 | 0.40 | 1.62 | 33 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 22.94 | 0.50 | (1.23 | ) | (0.73 | ) | (0.54 | ) | (1.61 | ) | (2.15 | ) | 20.06 | (3.93 | ) | 1,147,101 | 0.39 | 0.39 | 2.39 | 26 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 27.57 | 0.54 | (2.04 | ) | (1.50 | ) | (0.53 | ) | (2.60 | ) | (3.13 | ) | 22.94 | (4.64 | ) | 1,494,527 | 0.38 | 0.38 | 2.27 | 23 |
(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) | Annualized. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.98%, 0.99%, 0.95% and 0.96% for the years ended August 31, 2023, 2022, 2021 and 2019, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco Growth and Income Fund |
February 29, 2024
(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 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 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. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
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.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices 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, and their value may be adjusted accordingly. 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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). 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 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.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
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 mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally 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.
12 | Invesco Growth and Income Fund |
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
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 an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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. 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, 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 the ex-dividend date. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
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 based on relative net assets of Class R5 and Class R6. 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. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of |
13 | Invesco Growth and Income Fund |
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. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 29, 2024, the Fund paid the Adviser $1,295 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
J. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at 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.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. 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.
K. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
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 exchange of the two currencies on the settlement date, 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).
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 for hedging 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 the Adviser. 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 | 0.500% | |||
| ||||
Next $100 million | 0.450% | |||
| ||||
Next $100 million | 0.400% | |||
| ||||
Over $350 million | 0.350% | |||
|
For the six months ended February 29, 2024, the effective advisory fee rate incurred by the Fund was 0.36%.
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 agreed, for an indefinite period, 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 the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least June 30, 2025, 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.
14 | Invesco Growth and Income Fund |
For the six months ended February 29, 2024, the Adviser waived advisory fees of $38,492.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
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 or sub-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 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A shares, Class C shares and Class R shares to reimburse IDI for the sale, distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will reimburse 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. The fees are accrued daily and paid monthly. Of the Plans 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 each Fund. For the six months ended February 29, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 29, 2024, IDI advised the Fund that IDI retained $111,799 in front-end sales commissions from the sale of Class A shares and $4,626 and $1,811 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the six months ended February 29, 2024, the Fund incurred $133,767 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. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of February 29, 2024. 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 | $ | 3,832,076,383 | $ | 119,823,184 | $– | $ | 3,951,899,567 | |||||||||
| ||||||||||||||||
Money Market Funds | 78,998,535 | 81,285,074 | – | 160,283,609 | ||||||||||||
| ||||||||||||||||
Total Investments in Securities | 3,911,074,918 | 201,108,258 | – | 4,112,183,176 | ||||||||||||
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Other Investments - Assets* | ||||||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | 1,579,564 | – | 1,579,564 | ||||||||||||
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Other Investments - Liabilities* | ||||||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | (568,040 | ) | – | (568,040 | ) | ||||||||||
| ||||||||||||||||
Total Other Investments | – | 1,011,524 | – | 1,011,524 | ||||||||||||
| ||||||||||||||||
Total Investments | $ | 3,911,074,918 | $ | 202,119,782 | $– | $ | 4,113,194,700 | |||||||||
|
* | 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 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.
15 | Invesco Growth and Income 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 29, 2024:
Value | ||||
Derivative Assets | Currency Risk | |||
| ||||
Unrealized appreciation on forward foreign currency contracts outstanding | $ | 1,579,564 | ||
| ||||
Derivatives not subject to master netting agreements | – | |||
| ||||
Total Derivative Assets subject to master netting agreements | $ | 1,579,564 | ||
| ||||
Value | ||||
Derivative Liabilities | Currency Risk | |||
| ||||
Unrealized depreciation on forward foreign currency contracts outstanding | $ | (568,040 | ) | |
| ||||
Derivatives not subject to master netting agreements | – | |||
| ||||
Total Derivative Liabilities subject to master netting agreements | $ | (568,040 | ) | |
|
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 29, 2024.
Financial Derivative Assets | Financial Derivative Liabilities | Collateral (Received)/Pledged | ||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Forward Foreign Currency Contracts | Net Value of Derivatives | Non-Cash | Cash | Net Amount | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Bank of New York Mellon (The) | $ | 205,560 | $ | – | $ | 205,560 | $– | $– | $ | 205,560 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
State Street Bank & Trust Co. | 1,374,004 | (568,040 | ) | 805,964 | – | – | 805,964 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Total | $ | 1,579,564 | $ | (568,040 | ) | $ | 1,011,524 | $– | $– | $ | 1,011,524 | |||||||||||||||||||||
|
Effect of Derivative Investments for the six months ended February 29, 2024
The table below summarizes the gains (losses) 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 | $1,717,825 | |||
| ||||
Change in Net Unrealized Appreciation: | ||||
Forward foreign currency contracts | 499,599 | |||
| ||||
Total | $2,217,424 | |||
|
The table below summarizes the average notional value of derivatives held during the period.
Forward | ||
Foreign Currency | ||
Contracts | ||
| ||
Average notional value | $306,350,061 | |
|
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 29, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $18,391.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
16 | Invesco Growth and Income 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 at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8–Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from 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 fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of August 31, 2023.
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 29, 2024 was $508,311,864 and $898,738,283, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
Aggregate unrealized appreciation of investments | $1,161,501,817 | |||
| ||||
Aggregate unrealized (depreciation) of investments | (59,093,712 | ) | ||
| ||||
Net unrealized appreciation of investments | $1,102,408,105 | |||
|
Cost of investments for tax purposes is $3,010,786,595.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Six months ended | Year ended | |||||||||||||||||||||||||||
February 29, 2024(a) | August 31, 2023 | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Sold: | ||||||||||||||||||||||||||||
Class A | 2,897,572 | $ | 59,882,860 | 6,512,241 | $ | 137,726,084 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class C | 115,587 | 2,343,550 | 202,980 | 4,219,088 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R | 197,382 | 4,099,065 | 435,161 | 9,229,043 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class Y | 1,027,618 | 21,209,324 | 1,926,465 | 41,000,744 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R5 | 579,454 | 12,060,344 | 2,647,866 | 56,189,087 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R6 | 3,420,635 | 70,833,140 | 5,583,013 | 118,227,446 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||||||||||||||
Class A | 13,841,977 | 274,396,345 | 12,265,034 | 255,845,495 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class C | 168,814 | 3,271,719 | 155,470 | 3,182,844 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R | 314,705 | 6,253,218 | 266,590 | 5,572,630 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class Y | 1,861,535 | 36,923,374 | 1,866,983 | 38,941,820 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R5 | 1,325,168 | 26,333,846 | 2,201,109 | 45,983,255 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R6 | 4,847,484 | 96,328,800 | 4,382,001 | 91,494,780 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||||||||||||||
Class A | 87,491 | 1,801,338 | 122,711 | 2,600,775 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class C | (89,432 | ) | (1,801,338 | ) | (125,190 | ) | (2,600,775 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Reacquired: | ||||||||||||||||||||||||||||
Class A | (10,983,148 | ) | (226,518,929 | ) | (17,416,247 | ) | (370,332,708 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class C | (167,488 | ) | (3,384,143 | ) | (298,550 | ) | (6,207,598 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R | (315,994 | ) | (6,593,502 | ) | (524,669 | ) | (11,184,007 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class Y | (2,710,410 | ) | (55,946,065 | ) | (6,662,982 | ) | (139,790,800 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R5 | (5,906,961 | ) | (126,153,618 | ) | (7,340,237 | ) | (154,769,388 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R6 | (7,815,240 | ) | (161,803,907 | ) | (14,341,749 | ) | (314,603,809 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Net increase (decrease) in share activity | 2,696,749 | $ | 33,535,421 | (8,142,000 | ) | $ | (189,275,994 | ) | ||||||||||||||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 42% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
17 | Invesco 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, 2023 through February 29, 2024.
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 (09/01/23) | Ending Account Value (02/29/24)1 | Expenses Paid During Period2 | Ending Account Value (02/29/24) | Expenses Paid During Period2 | Annualized Expense Ratio | |||||||
Class A | $1,000.00 | $1,123.10 | $4.28 | $1,020.84 | $4.07 | 0.81% | ||||||
Class C | 1,000.00 | 1,118.40 | 8.22 | 1,017.11 | 7.82 | 1.56 | ||||||
Class R | 1,000.00 | 1,121.40 | 5.59 | 1,019.59 | 5.32 | 1.06 | ||||||
Class Y | 1,000.00 | 1,124.50 | 2.96 | 1,022.08 | 2.82 | 0.56 | ||||||
Class R5 | 1,000.00 | 1,124.00 | 2.69 | 1,022.33 | 2.56 | 0.51 | ||||||
Class R6 | 1,000.00 | 1,124.40 | 2.32 | 1,022.68 | 2.21 | 0.44 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2023 through February 29, 2024, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
18 | Invesco Growth and Income Fund |
A Special Joint Meeting (“Meeting”) of Shareholders of AIM Counselor Series Trust (Invesco Counselor Series Trust), a Delaware statutory trust (“Trust”), was held on January 16, 2024. The Meeting was held for the following purpose:
(1) Elect 14 trustees to the Board of Trustees of the Trust, each of whom will serve until his or her successor is duly elected and qualified.
The results of the voting on the above matter were as follows:
Matter | Votes For | Votes Against/Withheld | ||||||
| ||||||||
(1)* Beth Ann Brown | 3,109,848,785.61 | 65,706,470.15 | ||||||
Carol Deckbar | 3,109,186,378.07 | 66,368,877.70 | ||||||
Cynthia Hostetler | 3,108,148,647.37 | 67,406,608.40 | ||||||
Dr. Eli Jones | 3,106,962,123.35 | 68,593,132.42 | ||||||
Elizabeth Krentzman | 3,109,153,762.02 | 66,401,493.75 | ||||||
Jeffrey H. Kupor | 3,109,094,174.85 | 66,461,080.92 | ||||||
Anthony J. LaCava, Jr. | 3,107,453,603.09 | 68,101,652.67 | ||||||
James Liddy | 3,108,418,832.17 | 67,136,423.60 | ||||||
Dr. Prema Mathai-Davis | 3,100,922,564.57 | 74,632,691.20 | ||||||
Joel W. Motley | 3,104,496,522.60 | 71,058,733.17 | ||||||
Teresa M. Ressel | 3,109,248,693.76 | 66,306,562.01 | ||||||
Douglas Sharp | 3,108,681,578.09 | 66,873,677.67 | ||||||
Robert C. Troccoli | 3,104,038,320.81 | 71,516,934.96 | ||||||
Daniel S. Vandivort | 3,106,373,978.14 | 69,181,277.62 |
* | Proposal 1 required approval by a combined vote of all the portfolios of AIM Counselor Series Trust (Invesco Counselor Series Trust). |
19 | Invesco Growth and Income Fund |
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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, 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/ corporate/about-us/esg. 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. This 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 number(s): 811-09913 and 333-36074 | Invesco Distributors, Inc. | VK-GRI-SAR-1 |
Semiannual Report to Shareholders | February 29, 2024 |
Invesco Income Advantage U.S. Fund
Nasdaq:
A: SCAUX ∎ C: SCCUX ∎ R: SCRUX ∎ Y: SCAYX ∎ Investor: SCNUX ∎ R5: SCIUX ∎ R6: SLESX
| ||||
2 | Fund Performance | |||
4 | Schedule of Investments | |||
12 | Financial Statements | |||
15 | Financial Highlights | |||
16 | Notes to Financial Statements | |||
22 | Fund Expenses | |||
23 |
Beginning in July 2024, amendments adopted by the Securities and Exchange Commission will substantially impact the design, content, and delivery of shareholder reports. These newly designed shareholder reports will highlight key fund information in a clear and concise format and must be mailed to each shareholder that has not elected to receive the reports electronically. Other information, including financial statements, will no longer be included in the shareholder report but will be available at invesco.com/reports, delivered upon request, and filed on a semi-annual basis on Form N-CSR.
If you would like to receive shareholder reports and other communications electronically instead of by mail, you may make that request 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. If you do not make this request or enroll in e-delivery, you will receive future shareholder reports and other communications by mail.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is 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, 8/31/23 to 2/29/24, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 9.85 | % | ||
Class C Shares | 9.34 | |||
Class R Shares | 9.75 | |||
Class Y Shares | 9.96 | |||
Investor Class Shares | 9.93 | |||
Class R5 Shares | 9.99 | |||
Class R6 Shares | 9.89 | |||
S&P 500 Index▼ (Broad Market/Style-Specific Index) | 13.93 | |||
Lipper Equity Income Funds Index∎ (Peer Group Index) | 8.98 | |||
Source(s): ▼RIMES Technologies Corp.;∎ Lipper Inc. |
| |||
The S&P 500® Index is an unmanaged index considered representative of the US stock market. The Lipper Equity Income Funds Index is 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 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. |
|
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
|
2 | Invesco Income Advantage U.S. Fund |
Average Annual Total Returns |
| |||
As of 2/29/24, including maximum applicable sales charges |
| |||
Class A Shares |
| |||
Inception (3/31/06) | 4.72 | % | ||
10 Years | 4.46 | |||
5 Years | 4.13 | |||
1 Year | 14.62 | |||
Class C Shares | ||||
Inception (3/31/06) | 4.70 | % | ||
10 Years | 4.42 | |||
5 Years | 4.53 | |||
1 Year | 19.29 | |||
Class R Shares | ||||
Inception (3/31/06) | 4.80 | % | ||
10 Years | 4.79 | |||
5 Years | 5.06 | |||
1 Year | 20.94 | |||
Class Y Shares | ||||
Inception (10/3/08) | 7.31 | % | ||
10 Years | 5.31 | |||
5 Years | 5.58 | |||
1 Year | 21.52 | |||
Investor Class Shares | ||||
Inception (4/25/08) | 5.13 | % | ||
10 Years | 5.05 | |||
5 Years | 5.34 | |||
1 Year | 21.35 | |||
Class R5 Shares | ||||
Inception (3/31/06) | 5.42 | % | ||
10 Years | 5.47 | |||
5 Years | 5.72 | |||
1 Year | 21.58 | |||
Class R6 Shares | ||||
10 Years | 5.32 | % | ||
5 Years | 5.70 | |||
1 Year | 21.46 |
Effective July 15, 2021, Invesco Low Volatility Equity Yield Fund was renamed Invesco Income Advantage U.S. Fund. The Fund’s strategy also changed to invest in equity-linked notes and focus on factor based equity exposures, therefore results prior to July 15, 2021, reflect the performance of the Fund’s prior strategy.
Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will
fluctuate so that you may have a gain or loss when you sell shares.
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 a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 | Invesco Income Advantage U.S. Fund |
February 29, 2024
(Unaudited)
Shares | Value | |||||
Common Stocks & Other Equity Interests–73.39% | ||||||
Advertising–0.06% | ||||||
Omnicom Group, Inc. | 602 | $ 53,211 | ||||
Trade Desk, Inc. (The), Class A(b) | 718 | 61,339 | ||||
114,550 | ||||||
Aerospace & Defense–0.97% | ||||||
Boeing Co. (The)(b) | 513 | 104,508 | ||||
General Dynamics Corp. | 1,268 | 346,481 | ||||
L3Harris Technologies, Inc. | 418 | 88,474 | ||||
Lockheed Martin Corp. | 1,159 | 496,330 | ||||
Northrop Grumman Corp. | 623 | 287,215 | ||||
RTX Corp. | 2,918 | 261,657 | ||||
TransDigm Group, Inc. | 152 | 179,017 | ||||
1,763,682 | ||||||
Agricultural & Farm Machinery–0.15% |
| |||||
Deere & Co. | 771 | 281,454 | ||||
Agricultural Products & Services–0.03% | ||||||
Archer-Daniels-Midland Co. | 1,041 | 55,288 | ||||
Air Freight & Logistics–0.33% | ||||||
Expeditors International of Washington, Inc. | 1,111 | 132,876 | ||||
FedEx Corp. | 882 | 219,591 | ||||
United Parcel Service, Inc., Class B | 1,630 | 241,664 | ||||
594,131 | ||||||
Apparel Retail–0.22% | ||||||
Ross Stores, Inc. | 513 | 76,417 | ||||
TJX Cos., Inc. (The) | 3,266 | 323,791 | ||||
400,208 | ||||||
Apparel, Accessories & Luxury Goods–0.11% | ||||||
lululemon athletica, inc.(b) | 423 | 197,579 | ||||
Application Software–1.83% | ||||||
Adobe, Inc.(b) | 1,906 | 1,067,894 | ||||
ANSYS, Inc.(b) | 72 | 24,060 | ||||
Autodesk, Inc.(b) | 389 | 100,428 | ||||
Cadence Design Systems, Inc.(b) | 808 | 245,939 | ||||
Datadog, Inc., Class A(b) | 618 | 81,242 | ||||
HubSpot, Inc.(b) | 40 | 24,752 | ||||
Intuit, Inc. | 478 | 316,862 | ||||
Palantir Technologies, Inc., Class A(b) | 6,054 | 151,834 | ||||
Roper Technologies, Inc. | 650 | 354,075 | ||||
Salesforce, Inc.(b) | 1,537 | 474,656 | ||||
Splunk, Inc.(b)(c) | 439 | 68,581 | ||||
Synopsys, Inc.(b) | 413 | 236,951 | ||||
Workday, Inc., Class A(b) | 471 | 138,785 | ||||
Zoom Video Communications, Inc., Class A(b) | 599 | 42,367 | ||||
3,328,426 | ||||||
Asset Management & Custody Banks–0.47% | ||||||
Ameriprise Financial, Inc. | 175 | 71,288 | ||||
Bank of New York Mellon Corp. (The) | 3,302 | 185,209 |
Shares | Value | |||||
Asset Management & Custody Banks–(continued) | ||||||
BlackRock, Inc. | 122 | $ 98,984 | ||||
Blackstone, Inc., Class A | 1,795 | 229,437 | ||||
KKR & Co., Inc., Class A | 572 | 56,205 | ||||
Northern Trust Corp. | 779 | 63,979 | ||||
State Street Corp. | 1,225 | 90,319 | ||||
T. Rowe Price Group, Inc. | 463 | 52,481 | ||||
847,902 | ||||||
Automobile Manufacturers–1.09% |
| |||||
Ford Motor Co. | 25,037 | 311,460 | ||||
General Motors Co. | 18,379 | 753,171 | ||||
Tesla, Inc.(b) | 4,578 | 924,207 | ||||
1,988,838 | ||||||
Automotive Parts & Equipment–0.04% |
| |||||
Aptiv PLC(b) | 1,032 | 82,034 | ||||
Automotive Retail–0.28% | ||||||
AutoZone, Inc.(b)(c) | 66 | 198,397 | ||||
O’Reilly Automotive, Inc.(b) | 294 | 319,702 | ||||
518,099 | ||||||
Biotechnology–1.72% | ||||||
AbbVie, Inc. | 5,182 | 912,291 | ||||
Amgen, Inc.(c) | 2,519 | 689,778 | ||||
Biogen, Inc.(b) | 287 | 62,276 | ||||
BioMarin Pharmaceutical, Inc.(b)(c) | 157 | 13,546 | ||||
BioNTech SE, ADR (Germany)(b) | 2,266 | 201,583 | ||||
Gilead Sciences, Inc. | 5,137 | 370,378 | ||||
Incyte Corp.(b) | 791 | 46,163 | ||||
Moderna, Inc.(b) | 560 | 51,654 | ||||
Regeneron Pharmaceuticals, Inc.(b) | 390 | 376,775 | ||||
Vertex Pharmaceuticals, Inc.(b) | 985 | 414,429 | ||||
3,138,873 | ||||||
Broadcasting–0.06% | ||||||
Fox Corp., Class A | 3,486 | 103,848 | ||||
Broadline Retail–2.39% | ||||||
Amazon.com, Inc.(b) | 22,625 | 3,999,195 | ||||
Coupang, Inc. (South Korea)(b)(c) | 2,100 | 38,892 | ||||
eBay, Inc. | 3,378 | 159,712 | ||||
MercadoLibre, Inc. (Brazil)(b) | 104 | 165,911 | ||||
4,363,710 | ||||||
Building Products–0.21% | ||||||
Carrier Global Corp. | 2,232 | 124,055 | ||||
Johnson Controls International PLC | 1,599 | 94,773 | ||||
Trane Technologies PLC | 584 | 164,670 | ||||
383,498 | ||||||
Cable & Satellite–0.66% | ||||||
Charter Communications, Inc., Class A(b)(c) | 555 | 163,131 | ||||
Comcast Corp., Class A | 24,246 | 1,038,941 | ||||
Sirius XM Holdings, Inc.(c) | 548 | 2,422 | ||||
1,204,494 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 | Invesco Income Advantage U.S. Fund |
Shares | Value | |||||
Cargo Ground Transportation–0.08% | ||||||
Old Dominion Freight Line, Inc. | 334 | $ 147,788 | ||||
Casinos & Gaming–0.02% | ||||||
Las Vegas Sands Corp. | 636 | 34,675 | ||||
Commodity Chemicals–0.13% | ||||||
Dow, Inc. | 2,356 | 131,653 | ||||
LyondellBasell Industries N.V., Class A | 1,028 | 103,088 | ||||
234,741 | ||||||
Communications Equipment–0.79% |
| |||||
Arista Networks, Inc.(b) | 510 | 141,545 | ||||
Cisco Systems, Inc. | 19,026 | 920,288 | ||||
Motorola Solutions, Inc. | 1,126 | 372,019 | ||||
1,433,852 | ||||||
Computer & Electronics Retail–0.04% |
| |||||
Best Buy Co., Inc.(c) | 843 | 68,182 | ||||
Construction Machinery & Heavy Transportation Equipment– 0.73% | ||||||
Caterpillar, Inc. | 2,498 | 834,232 | ||||
Cummins, Inc. | 625 | 167,881 | ||||
PACCAR, Inc. | 2,954 | 327,569 | ||||
1,329,682 | ||||||
Construction Materials–0.09% | ||||||
Martin Marietta Materials, Inc. | 112 | 64,704 | ||||
Vulcan Materials Co. | 384 | 102,086 | ||||
166,790 | ||||||
Consumer Electronics–0.10% | ||||||
Garmin Ltd. | 1,291 | 177,319 | ||||
Consumer Finance–0.43% | ||||||
American Express Co. | 1,701 | 373,233 | ||||
Capital One Financial Corp. | 1,501 | 206,553 | ||||
Discover Financial Services | 1,681 | 202,897 | ||||
782,683 | ||||||
Consumer Staples Merchandise Retail–1.22% | ||||||
Costco Wholesale Corp. | 1,336 | 993,837 | ||||
Dollar General Corp. | 186 | 27,028 | ||||
Dollar Tree, Inc.(b) | 186 | 27,283 | ||||
Target Corp. | 1,310 | 200,325 | ||||
Walmart, Inc. | 16,494 | 966,713 | ||||
2,215,186 | ||||||
Copper–0.06% | ||||||
Freeport-McMoRan, Inc. | 2,788 | 105,414 | ||||
Southern Copper Corp. (Mexico)(c) | 72 | 5,822 | ||||
111,236 | ||||||
Data Center REITs–0.17% | ||||||
Digital Realty Trust, Inc.(c) | 506 | 74,286 | ||||
Equinix, Inc. | 262 | 232,871 | ||||
307,157 | ||||||
Distillers & Vintners–0.08% | ||||||
Brown-Forman Corp., Class B(c) | 344 | 20,719 | ||||
Constellation Brands, Inc., Class A | 513 | 127,491 | ||||
148,210 |
Shares | Value | |||||
Distributors–0.04% | ||||||
Genuine Parts Co. | 524 | $ 78,212 | ||||
Diversified Banks–2.23% | ||||||
Bank of America Corp. | 21,626 | 746,529 | ||||
Citigroup, Inc. | 11,757 | 652,396 | ||||
Fifth Third Bancorp | 1,679 | 57,657 | ||||
JPMorgan Chase & Co. | 7,960 | 1,481,038 | ||||
NU Holdings Ltd., Class A (Brazil)(b)(c) | 17,479 | 193,667 | ||||
PNC Financial Services Group, Inc. (The) | 878 | 129,242 | ||||
U.S. Bancorp | 2,970 | 124,621 | ||||
Wells Fargo & Co. | 12,169 | 676,475 | ||||
4,061,625 | ||||||
Diversified Financial Services–0.05% | ||||||
Apollo Global Management, Inc. | 891 | 99,614 | ||||
Diversified Support Services–0.15% | ||||||
Cintas Corp. | 295 | 185,440 | ||||
Copart, Inc.(b) | 1,498 | 79,619 | ||||
265,059 | ||||||
Drug Retail–0.02% | ||||||
Walgreens Boots Alliance, Inc. | 1,563 | 33,229 | ||||
Electric Utilities–1.12% | ||||||
American Electric Power Co., Inc. | 1,479 | 125,996 | ||||
Avangrid, Inc. | 59 | 1,837 | ||||
Constellation Energy Corp. | 972 | 163,733 | ||||
Duke Energy Corp. | 3,720 | 341,608 | ||||
Edison International | 1,465 | 99,649 | ||||
Entergy Corp. | 1,029 | 104,515 | ||||
Eversource Energy | 1,215 | 71,320 | ||||
Exelon Corp. | 2,752 | 98,632 | ||||
FirstEnergy Corp. | 2,021 | 73,989 | ||||
NextEra Energy, Inc. | 6,246 | 344,717 | ||||
PG&E Corp. | 3,255 | 54,326 | ||||
PPL Corp. | 4,908 | 129,424 | ||||
Southern Co. (The) | 4,036 | 271,421 | ||||
Xcel Energy, Inc. | 3,061 | 161,284 | ||||
2,042,451 | ||||||
Electrical Components & Equipment–0.33% | ||||||
AMETEK, Inc. | 481 | 86,666 | ||||
Eaton Corp. PLC | 1,183 | 341,887 | ||||
Emerson Electric Co. | 1,009 | 107,812 | ||||
Rockwell Automation, Inc. | 247 | 70,415 | ||||
606,780 | ||||||
Electronic Components–0.28% | ||||||
Amphenol Corp., Class A | 4,150 | 453,346 | ||||
Corning, Inc. | 1,633 | 52,648 | ||||
505,994 | ||||||
Electronic Equipment & Instruments–0.06% | ||||||
Keysight Technologies, Inc.(b) | 621 | 95,820 | ||||
Zebra Technologies Corp., Class A(b) | 44 | 12,297 | ||||
108,117 | ||||||
Electronic Manufacturing Services–0.09% |
| |||||
TE Connectivity Ltd. | 1,105 | 158,634 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Income Advantage U.S. Fund |
Shares | Value | |||||
Environmental & Facilities Services–0.45% | ||||||
Republic Services, Inc. | 1,375 | $ 252,450 | ||||
Waste Connections, Inc. | 1,178 | 196,066 | ||||
Waste Management, Inc. | 1,824 | 375,106 | ||||
823,622 | ||||||
Fertilizers & Agricultural Chemicals–0.04% | ||||||
Corteva, Inc. | 1,257 | 67,275 | ||||
Financial Exchanges & Data–0.58% | ||||||
CME Group, Inc., Class A | 1,468 | 323,474 | ||||
Intercontinental Exchange, Inc. | 1,589 | 219,949 | ||||
Moody’s Corp. | 294 | 111,549 | ||||
MSCI, Inc. | 145 | 81,341 | ||||
Nasdaq, Inc. | 1,270 | 71,374 | ||||
S&P Global, Inc. | 581 | 248,889 | ||||
1,056,576 | ||||||
Food Distributors–0.04% | ||||||
Sysco Corp. | 838 | 67,853 | ||||
Food Retail–0.09% | ||||||
Kroger Co. (The) | 3,366 | 166,987 | ||||
Footwear–0.06% | ||||||
NIKE, Inc., Class B | 1,000 | 103,930 | ||||
Gold–0.02% | ||||||
Newmont Corp. | 965 | 30,156 | ||||
Health Care Distributors–0.28% | ||||||
Cardinal Health, Inc. | 978 | 109,516 | ||||
Cencora, Inc. | 511 | 120,392 | ||||
McKesson Corp. | 551 | 287,297 | ||||
517,205 | ||||||
Health Care Equipment–1.26% | ||||||
Abbott Laboratories | 3,752 | 445,137 | ||||
Baxter International, Inc. | 424 | 17,350 | ||||
Becton, Dickinson and Co. | 1,179 | 277,714 | ||||
Boston Scientific Corp.(b) | 4,347 | 287,815 | ||||
DexCom, Inc.(b) | 653 | 75,141 | ||||
Edwards Lifesciences Corp.(b) | 501 | 42,520 | ||||
GE HealthCare Technologies, Inc. | 760 | 69,373 | ||||
IDEXX Laboratories, Inc.(b) | 191 | 109,869 | ||||
Intuitive Surgical, Inc.(b) | 669 | 257,966 | ||||
Medtronic PLC | 4,109 | 342,526 | ||||
ResMed, Inc. | 124 | 21,541 | ||||
STERIS PLC | 191 | 44,486 | ||||
Stryker Corp. | 801 | 279,605 | ||||
Zimmer Biomet Holdings, Inc. | 176 | 21,887 | ||||
2,292,930 | ||||||
Health Care Facilities–0.16% | ||||||
HCA Healthcare, Inc. | 957 | 298,297 | ||||
Health Care REITs–0.07% | ||||||
Ventas, Inc. | 922 | 38,991 | ||||
Welltower, Inc. | 1,006 | 92,713 | ||||
131,704 | ||||||
Health Care Services–0.66% | ||||||
Cigna Group (The) | 1,609 | 540,849 |
Shares | Value | |||||
Health Care Services–(continued) | ||||||
CVS Health Corp. | 7,189 | $ 534,646 | ||||
Laboratory Corp. of America Holdings | 347 | 74,893 | ||||
Quest Diagnostics, Inc. | 400 | 49,956 | ||||
1,200,344 | ||||||
Health Care Supplies–0.03% | ||||||
Align Technology, Inc.(b) | 153 | 46,270 | ||||
Health Care Technology–0.03% | ||||||
Veeva Systems, Inc., Class A(b) | 284 | 64,045 | ||||
Home Improvement Retail–0.92% |
| |||||
Home Depot, Inc. (The) | 3,184 | 1,211,862 | ||||
Lowe’s Cos., Inc. | 1,931 | 464,734 | ||||
1,676,596 | ||||||
Homebuilding–0.27% | ||||||
D.R. Horton, Inc. | 1,647 | 246,128 | ||||
Lennar Corp., Class A | 1,601 | 253,774 | ||||
499,902 | ||||||
Hotels, Resorts & Cruise Lines–0.54% |
| |||||
Airbnb, Inc., Class A(b) | 1,258 | 198,097 | ||||
Booking Holdings, Inc.(b) | 140 | 485,636 | ||||
Expedia Group, Inc.(b) | 497 | 68,000 | ||||
Hilton Worldwide Holdings, Inc. | 619 | 126,474 | ||||
Marriott International, Inc., Class A | 461 | 115,190 | ||||
993,397 | ||||||
Household Products–1.14% | ||||||
Church & Dwight Co., Inc. | 632 | 63,276 | ||||
Clorox Co. (The)(c) | 321 | 49,212 | ||||
Colgate-Palmolive Co. | 3,947 | 341,494 | ||||
Kimberly-Clark Corp. | 868 | 105,176 | ||||
Procter & Gamble Co. (The) | 9,503 | 1,510,407 | ||||
2,069,565 | ||||||
Human Resource & Employment Services–0.35% | ||||||
Automatic Data Processing, Inc. | 2,116 | 531,391 | ||||
Paychex, Inc. | 900 | 110,358 | ||||
641,749 | ||||||
Industrial Conglomerates–0.54% | ||||||
3M Co. | 718 | 66,142 | ||||
General Electric Co. | 4,121 | 646,544 | ||||
Honeywell International, Inc. | 1,378 | 273,850 | ||||
986,536 | ||||||
Industrial Gases–0.58% | ||||||
Air Products and Chemicals, Inc. | 548 | 128,254 | ||||
Linde PLC | 2,069 | 928,609 | ||||
1,056,863 | ||||||
Industrial Machinery & Supplies & Components–0.41% | ||||||
Dover Corp. | 425 | 70,287 | ||||
Fortive Corp. | 1,426 | 121,395 | ||||
Illinois Tool Works, Inc. | 954 | 250,091 | ||||
Otis Worldwide Corp. | 1,265 | 120,554 | ||||
Parker-Hannifin Corp. | 339 | 181,518 | ||||
743,845 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Income Advantage U.S. Fund |
Shares | Value | |||||
Industrial REITs–0.14% | ||||||
Prologis, Inc. | 1,924 | $ 256,412 | ||||
Insurance Brokers–0.59% | ||||||
Aon PLC, Class A | 851 | 268,907 | ||||
Arthur J. Gallagher & Co. | 932 | 227,343 | ||||
Marsh & McLennan Cos., Inc. | 2,422 | 489,898 | ||||
Willis Towers Watson PLC | 339 | 92,415 | ||||
1,078,563 | ||||||
Integrated Oil & Gas–1.41% | ||||||
Chevron Corp. | 5,330 | 810,213 | ||||
Exxon Mobil Corp. | 14,758 | 1,542,506 | ||||
Occidental Petroleum Corp. | 3,547 | 214,984 | ||||
2,567,703 | ||||||
Integrated Telecommunication Services–1.90% | ||||||
AT&T, Inc. | 58,016 | 982,211 | ||||
Verizon Communications, Inc. | 62,015 | 2,481,840 | ||||
3,464,051 | ||||||
Interactive Home Entertainment–0.17% | ||||||
Electronic Arts, Inc. | 2,087 | 291,095 | ||||
Roblox Corp., Class A(b)(c) | 374 | 14,922 | ||||
306,017 | ||||||
Interactive Media & Services–5.47% | ||||||
Alphabet, Inc., Class A(b) | 32,347 | 4,478,765 | ||||
Meta Platforms, Inc., Class A | 11,191 | 5,485,045 | ||||
9,963,810 | ||||||
Internet Services & Infrastructure–0.10% | ||||||
Snowflake, Inc., Class A(b) | 252 | 47,447 | ||||
VeriSign, Inc.(b) | 695 | 135,726 | ||||
183,173 | ||||||
Investment Banking & Brokerage–0.34% | ||||||
Charles Schwab Corp. (The) | 1,379 | 92,090 | ||||
Goldman Sachs Group, Inc. (The) | 878 | 341,586 | ||||
Morgan Stanley | 2,132 | 183,437 | ||||
617,113 | ||||||
IT Consulting & Other Services–1.48% | ||||||
Accenture PLC, Class A | 2,113 | 791,910 | ||||
Cognizant Technology Solutions Corp., Class A | 4,265 | 337,020 | ||||
EPAM Systems, Inc.(b) | 124 | 37,746 | ||||
International Business Machines Corp. | 8,286 | 1,533,159 | ||||
2,699,835 | ||||||
Life & Health Insurance–0.22% | ||||||
Aflac, Inc. | 1,584 | 127,892 | ||||
MetLife, Inc. | 2,882 | 200,991 | ||||
Principal Financial Group, Inc. | 464 | 37,519 | ||||
Prudential Financial, Inc. | 302 | 32,915 | ||||
399,317 | ||||||
Life Sciences Tools & Services–0.61% |
| |||||
Agilent Technologies, Inc. | 705 | 96,839 | ||||
Danaher Corp. | 1,790 | 453,121 | ||||
Illumina, Inc.(b) | 134 | 18,737 | ||||
IQVIA Holdings, Inc.(b) | 151 | 37,321 |
Shares | Value | |||||
Life Sciences Tools & Services–(continued) | ||||||
Mettler-Toledo International, Inc.(b) | 43 | $ 53,630 | ||||
Thermo Fisher Scientific, Inc. | 657 | 374,608 | ||||
Waters Corp.(b) | 49 | 16,534 | ||||
West Pharmaceutical Services, Inc. | 152 | 54,471 | ||||
1,105,261 | ||||||
Managed Health Care–1.42% | ||||||
Centene Corp.(b) | 2,609 | 204,624 | ||||
Elevance Health, Inc. | 736 | 368,920 | ||||
Humana, Inc. | 585 | 204,937 | ||||
UnitedHealth Group, Inc. | 3,665 | 1,809,044 | ||||
2,587,525 | ||||||
Metal, Glass & Plastic Containers–0.01% |
| |||||
Ball Corp. | 263 | 16,837 | ||||
Movies & Entertainment–0.36% | ||||||
Liberty Media Corp.-Liberty Formula One(b) | 974 | 70,868 | ||||
Netflix, Inc.(b) | 604 | 364,163 | ||||
Walt Disney Co. (The) | 1,548 | 172,726 | ||||
Warner Bros. Discovery, Inc.(b) | 5,811 | 51,079 | ||||
658,836 | ||||||
Multi-Family Residential REITs–0.09% |
| |||||
AvalonBay Communities, Inc. | 491 | 86,922 | ||||
Equity Residential | 1,222 | 73,576 | ||||
160,498 | ||||||
Multi-line Insurance–0.07% | ||||||
American International Group, Inc. | 1,835 | 133,753 | ||||
Multi-Sector Holdings–2.49% | ||||||
Berkshire Hathaway, Inc., Class B(b) | 11,072 | 4,532,877 | ||||
Multi-Utilities–0.61% | ||||||
Ameren Corp. | 1,062 | 75,604 | ||||
CMS Energy Corp. | 1,263 | 72,458 | ||||
Consolidated Edison, Inc. | 1,641 | 143,112 | ||||
Dominion Energy, Inc. | 3,059 | 146,312 | ||||
DTE Energy Co. | 1,031 | 111,709 | ||||
Public Service Enterprise Group, Inc. | 5,409 | 337,521 | ||||
Sempra | 1,578 | 111,407 | ||||
WEC Energy Group, Inc. | 1,560 | 122,444 | ||||
1,120,567 | ||||||
Office REITs–0.06% | ||||||
Alexandria Real Estate Equities, Inc.(c) | 819 | 102,154 | ||||
Oil & Gas Equipment & Services–0.14% |
| |||||
Baker Hughes Co., Class A | 2,045 | 60,512 | ||||
Halliburton Co. | 1,899 | 66,598 | ||||
Schlumberger N.V. | 2,667 | 128,896 | ||||
256,006 | ||||||
Oil & Gas Exploration & Production–0.64% |
| |||||
ConocoPhillips | 4,167 | 468,954 | ||||
Coterra Energy, Inc. | 3,343 | 86,183 | ||||
Devon Energy Corp. | 1,304 | 57,454 | ||||
Diamondback Energy, Inc. | 442 | 80,674 | ||||
EOG Resources, Inc. | 1,737 | 198,817 | ||||
Hess Corp. | 939 | 136,859 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Income Advantage U.S. Fund |
Shares | Value | |||||
Oil & Gas Exploration & Production–(continued) | ||||||
Pioneer Natural Resources Co. | 578 | $ 135,940 | ||||
1,164,881 | ||||||
Oil & Gas Refining & Marketing–0.58% | ||||||
Marathon Petroleum Corp. | 3,080 | 521,228 | ||||
Phillips 66 | 1,743 | 248,395 | ||||
Valero Energy Corp. | 1,974 | 279,242 | ||||
1,048,865 | ||||||
Oil & Gas Storage & Transportation–0.32% | ||||||
Cheniere Energy, Inc. | 1,530 | 237,456 | ||||
Kinder Morgan, Inc. | 7,459 | 129,712 | ||||
ONEOK, Inc. | 954 | 71,665 | ||||
Williams Cos., Inc. (The) | 3,959 | 142,286 | ||||
581,119 | ||||||
Other Specialized REITs–0.11% | ||||||
VICI Properties, Inc. | 6,829 | 204,392 | ||||
Other Specialty Retail–0.03% | ||||||
Ulta Beauty, Inc.(b)(c) | 104 | 57,050 | ||||
Packaged Foods & Meats–0.60% | ||||||
Campbell Soup Co.(c) | 726 | 30,957 | ||||
Conagra Brands, Inc. | 1,952 | 54,812 | ||||
General Mills, Inc. | 2,948 | 189,203 | ||||
Hershey Co. (The) | 636 | 119,517 | ||||
Hormel Foods Corp. | 1,605 | 56,689 | ||||
J.M. Smucker Co. (The) | 879 | 105,629 | ||||
Kellanova | 1,585 | 87,413 | ||||
Kraft Heinz Co. (The) | 4,476 | 157,913 | ||||
McCormick & Co., Inc. | 212 | 14,598 | ||||
Mondelez International, Inc., Class A | 3,693 | 269,847 | ||||
Tyson Foods, Inc., Class A | 237 | 12,855 | ||||
1,099,433 | ||||||
Paper & Plastic Packaging Products & Materials–0.03% | ||||||
Amcor PLC | 6,277 | 56,870 | ||||
Passenger Airlines–0.01% | ||||||
Delta Air Lines, Inc. | 136 | 5,748 | ||||
Southwest Airlines Co. | 125 | 4,284 | ||||
10,032 | ||||||
Passenger Ground Transportation–0.13% | ||||||
Uber Technologies, Inc.(b) | 3,085 | 245,258 | ||||
Personal Care Products–0.03% | ||||||
Estee Lauder Cos., Inc. (The), Class A | 411 | 61,066 | ||||
Pharmaceuticals–3.81% | ||||||
Bristol-Myers Squibb Co. | 11,471 | 582,153 | ||||
Eli Lilly and Co. | 3,475 | 2,619,038 | ||||
Johnson & Johnson | 11,888 | 1,918,486 | ||||
Merck & Co., Inc. | 9,482 | 1,205,636 | ||||
Pfizer, Inc. | 16,159 | 429,183 | ||||
Royalty Pharma PLC, Class A | 1,267 | 38,441 | ||||
Zoetis, Inc. | 730 | 144,781 | ||||
6,937,718 | ||||||
Property & Casualty Insurance–0.96% | ||||||
Allstate Corp. (The) | 523 | 83,429 |
Shares | Value | |||||
Property & Casualty Insurance–(continued) | ||||||
Arch Capital Group Ltd.(b) | 2,074 | $ 181,662 | ||||
Chubb Ltd. | 1,980 | 498,306 | ||||
Hartford Financial Services Group, Inc. (The) | 1,239 | 118,746 | ||||
Markel Group, Inc.(b) | 73 | 108,951 | ||||
Progressive Corp. (The) | 2,796 | 530,010 | ||||
Travelers Cos., Inc. (The) | 1,025 | 226,484 | ||||
1,747,588 | ||||||
Rail Transportation–0.52% | ||||||
CSX Corp. | 8,005 | 303,710 | ||||
Norfolk Southern Corp. | 425 | 107,687 | ||||
Union Pacific Corp. | 2,134 | 541,374 | ||||
952,771 | ||||||
Real Estate Services–0.14% | ||||||
CBRE Group, Inc., Class A(b) | 1,128 | 103,652 | ||||
CoStar Group, Inc.(b) | 1,736 | 151,084 | ||||
254,736 | ||||||
Regional Banks–0.16% | ||||||
M&T Bank Corp. | 546 | 76,298 | ||||
Regions Financial Corp. | 2,914 | 54,288 | ||||
Truist Financial Corp. | 4,735 | 165,630 | ||||
296,216 | ||||||
Research & Consulting Services–0.07% | ||||||
Equifax, Inc. | 103 | 28,180 | ||||
Verisk Analytics, Inc. | 415 | 100,388 | ||||
128,568 | ||||||
Restaurants–0.81% | ||||||
Chipotle Mexican Grill, Inc.(b) | 78 | 209,724 | ||||
DoorDash, Inc., Class A(b) | 233 | 29,025 | ||||
McDonald’s Corp. | 3,360 | 982,061 | ||||
Starbucks Corp. | 929 | 88,162 | ||||
Yum! Brands, Inc. | 1,182 | 163,612 | ||||
1,472,584 | ||||||
Retail REITs–0.13% | ||||||
Realty Income Corp. | 3,731 | 194,422 | ||||
Simon Property Group, Inc. | 269 | 39,850 | ||||
234,272 | ||||||
Self-Storage REITs–0.17% | ||||||
Extra Space Storage, Inc.(c) | 522 | 73,587 | ||||
Public Storage | 852 | 241,857 | ||||
315,444 | ||||||
Semiconductor Materials & Equipment–0.84% | ||||||
Applied Materials, Inc. | 3,790 | 764,140 | ||||
Enphase Energy, Inc.(b) | 112 | 14,225 | ||||
KLA Corp. | 378 | 257,909 | ||||
Lam Research Corp. | 524 | 491,643 | ||||
1,527,917 | ||||||
Semiconductors–5.11% | ||||||
Advanced Micro Devices, Inc.(b) | 2,830 | 544,860 | ||||
Analog Devices, Inc. | 1,317 | 252,627 | ||||
Broadcom, Inc. | 999 | 1,299,189 | ||||
Intel Corp. | 7,431 | 319,905 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Income Advantage U.S. Fund |
Shares | Value | |||||
Semiconductors–(continued) | ||||||
Marvell Technology, Inc. | 1,189 | $ 85,204 | ||||
Microchip Technology, Inc. | 1,918 | 161,380 | ||||
Micron Technology, Inc. | 1,507 | 136,549 | ||||
NVIDIA Corp. | 6,131 | 4,850,357 | ||||
ON Semiconductor Corp.(b) | 1,218 | 96,125 | ||||
QUALCOMM, Inc. | 4,169 | 657,826 | ||||
Skyworks Solutions, Inc. | 806 | 84,566 | ||||
Texas Instruments, Inc. | 4,863 | 813,726 | ||||
9,302,314 | ||||||
Soft Drinks & Non-alcoholic Beverages–0.76% | ||||||
Coca-Cola Co. (The) | 8,470 | 508,370 | ||||
Keurig Dr Pepper, Inc. | 1,842 | 55,094 | ||||
Monster Beverage Corp.(b) | 1,160 | 68,556 | ||||
PepsiCo, Inc. | 4,504 | 744,691 | ||||
1,376,711 | ||||||
Specialty Chemicals–0.33% | ||||||
Albemarle Corp. | 433 | 59,689 | ||||
DuPont de Nemours, Inc. | 1,324 | 91,608 | ||||
Ecolab, Inc. | 731 | 164,358 | ||||
International Flavors & Fragrances, Inc. | 214 | 16,157 | ||||
PPG Industries, Inc. | 442 | 62,587 | ||||
Sherwin-Williams Co. (The) | 647 | 214,823 | ||||
609,222 | ||||||
Steel–0.19% | ||||||
Nucor Corp. | 1,806 | 347,294 | ||||
Systems Software–4.83% | ||||||
CrowdStrike Holdings, Inc., Class A(b) | 994 | 322,205 | ||||
Fortinet, Inc.(b) | 1,298 | 89,705 | ||||
Microsoft Corp. | 18,374 | 7,600,221 | ||||
Oracle Corp. | 2,575 | 287,576 | ||||
Palo Alto Networks, Inc.(b)(c) | 795 | 246,887 | ||||
ServiceNow, Inc.(b) | 341 | 263,027 | ||||
8,809,621 | ||||||
Technology Distributors–0.08% | ||||||
CDW Corp. | 563 | 138,616 | ||||
Technology Hardware, Storage & Peripherals–3.18% | ||||||
Apple, Inc. | 30,461 | 5,505,826 | ||||
Hewlett Packard Enterprise Co. | 10,095 | 153,747 | ||||
HP, Inc. | 2,285 | 64,734 | ||||
NetApp, Inc.(c) | 799 | 71,207 | ||||
5,795,514 | ||||||
Telecom Tower REITs–0.29% | ||||||
American Tower Corp. | 1,539 | 306,046 | ||||
Crown Castle, Inc. | 1,214 | 133,467 | ||||
SBA Communications Corp., Class A | 410 | 85,784 | ||||
525,297 | ||||||
Timber REITs–0.03% | ||||||
Weyerhaeuser Co. | 1,645 | 56,555 | ||||
Tobacco–0.45% | ||||||
Altria Group, Inc. | 12,108 | 495,338 | ||||
Philip Morris International, Inc. | 3,592 | 323,137 | ||||
818,475 |
Shares | Value | |||||
Trading Companies & Distributors–0.15% | ||||||
Fastenal Co. | 2,320 | $ 169,383 | ||||
W.W. Grainger, Inc. | 116 | 112,922 | ||||
282,305 | ||||||
Transaction & Payment Processing Services–2.39% | ||||||
Block, Inc., Class A(b)(c) | 452 | 35,920 | ||||
Fidelity National Information Services, Inc. | 1,287 | 89,048 | ||||
Fiserv, Inc.(b) | 1,795 | 267,940 | ||||
FLEETCOR Technologies, Inc.(b) | 311 | 86,853 | ||||
Global Payments, Inc. | 1,096 | 142,151 | ||||
Mastercard, Inc., Class A | 1,873 | 889,225 | ||||
PayPal Holdings, Inc.(b) | 2,376 | 143,368 | ||||
Visa, Inc., Class A | 9,524 | 2,691,863 | ||||
4,346,368 | ||||||
Water Utilities–0.03% | ||||||
American Water Works Co., Inc. | 434 | 51,446 | ||||
Wireless Telecommunication Services–0.35% |
| |||||
T-Mobile US, Inc. | 3,889 | 635,074 | ||||
Total Common Stocks & Other Equity Interests (Cost $107,591,168) | 133,721,377 | |||||
Principal Amount | ||||||
Equity Linked Notes–2.30% | ||||||
Diversified Banks–2.02% | ||||||
Barclays Bank PLC (S&P 500® Index) (United Kingdom), 256.88%, 03/18/2024(d) | $ | 316,000 | 292,946 | |||
BNP Paribas Issuance B.V. (S&P 500® Index) (France), | ||||||
258.55%, 03/20/2024(d) | 309,000 | 281,733 | ||||
185.10%, 03/21/2024(d) | 449,000 | 426,555 | ||||
173.92%, 03/25/2024(d) | 477,000 | 449,717 | ||||
Citigroup Global Markets Holdings, Inc. (S&P 500® Index), 256.61%, 03/06/2024(d) | 315,000 | 232,146 | ||||
250.41%, 03/13/2024(d) | 314,000 | 280,461 | ||||
200.50%, 03/27/2024(d) | 475,000 | 469,486 | ||||
HSBC Bank PLC (S&P 500® Index) (United Kingdom), 260.40%, 03/07/2024(d) | 312,000 | 175,444 | ||||
Societe Generale SA (S&P 500® Index) (France), | ||||||
257.28%, 03/14/2024(d) | 319,000 | 295,323 | ||||
244.39%, 03/28/2024(d) | 403,000 | 385,713 | ||||
211.21%, 04/02/2024(d) | 401,000 | 378,750 | ||||
3,668,274 | ||||||
Diversified Capital Markets–0.28% |
| |||||
UBS AG (S&P 500® Index) (Switzerland), 247.50%, 03/11/2024(d) | 312,000 | 260,075 | ||||
UBS Group AG (S&P 500® Index) (Switzerland), 217.00%, 03/04/2024(d) | 351,000 | 253,628 | ||||
513,703 | ||||||
Total Equity Linked Notes (Cost $4,753,000) |
| 4,181,977 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Income Advantage U.S. Fund |
Shares | Value | |||||
Money Market Funds–24.47% | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 5.24%(e)(f) | 15,667,738 | $15,667,738 | ||||
| ||||||
Invesco Liquid Assets Portfolio, Institutional Class, 5.41%(e)(f) | 11,014,643 | 11,020,150 | ||||
| ||||||
Invesco Treasury Portfolio, Institutional Class, 5.23%(e)(f) | 17,905,987 | 17,905,987 | ||||
| ||||||
Total Money Market Funds |
| 44,593,875 | ||||
| ||||||
TOTAL INVESTMENTS IN SECURITIES |
| 182,497,229 | ||||
|
Shares | Value | |||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||
Money Market Funds–1.10% | ||||||
Invesco Private Government Fund, 5.29%(e)(f)(g) | 563,375 | $563,375 | ||||
| ||||||
Invesco Private Prime Fund, 5.49%(e)(f)(g) | 1,447,954 | 1,448,678 | ||||
| ||||||
Total Investments Purchased with Cash Collateral from Securities on Loan |
| 2,012,053 | ||||
| ||||||
TOTAL INVESTMENTS IN SECURITIES–101.26% |
| 184,509,282 | ||||
| ||||||
OTHER ASSETS LESS LIABILITIES—(1.26)% |
| (2,297,582) | ||||
| ||||||
NET ASSETS–100.00% | $182,211,700 | |||||
|
Investment Abbreviations:
ADR – American Depositary Receipt
REIT – Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at February 29, 2024. |
(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 29, 2024 was $4,181,977, which represented 2.30% of the Fund’s Net Assets. |
(e) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 29, 2024. |
Value August 31, 2023 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain | Value February 29, 2024 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $13,538,323 | $ 39,395,381 | $ (37,265,966 | ) | $ - | $ - | $15,667,738 | $ 333,369 | ||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 9,495,073 | 28,139,559 | (26,618,547 | ) | 1,402 | 2,663 | 11,020,150 | 240,498 | ||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 15,472,369 | 45,023,294 | (42,589,676 | ) | - | - | 17,905,987 | 379,645 | ||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | ||||||||||||||||||||||||||||
Invesco Private Government Fund | 683,311 | 17,011,870 | (17,131,806 | ) | - | - | 563,375 | 28,729* | ||||||||||||||||||||
Invesco Private Prime Fund | 1,757,085 | 37,298,621 | (37,609,193 | ) | 26 | 2,139 | 1,448,678 | 74,254* | ||||||||||||||||||||
Total | $40,946,161 | $166,868,725 | $(161,215,188 | ) | $1,428 | $4,802 | $46,605,928 | $1,056,495 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(f) | The rate shown is the 7-day SEC standardized yield as of February 29, 2024. |
(g) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J. |
Open Futures Contracts(a) | ||||||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation | |||||||||||||||
Equity Risk | ||||||||||||||||||||
E-Mini S&P 500 Index | 24 | March-2024 | $ | 6,124,500 | $ | 91,826 | $ | 91,826 |
(a) | Futures contracts collateralized by $283,200 cash held with missing attribute, the futures commission merchant. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Income Advantage U.S. Fund |
Portfolio Composition
By sector, based on Net Assets
as of February 29, 2024
Information Technology | 18.66 | % | ||
Financials | 13.27 | |||
Health Care | 9.98 | |||
Communication Services | 9.03 | |||
Consumer Discretionary | 6.98 | |||
Industrials | 5.59 | |||
Consumer Staples | 4.45 | |||
Energy | 3.08 | |||
Other Sectors, Each Less than 2% of Net Assets | 4.64 | |||
Money Market Funds Plus Other Assets Less Liabilities | 24.32 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco Income Advantage U.S. Fund |
Statement of Assets and Liabilities
February 29, 2024
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value (Cost $ 112,344,168)* | $ | 137,903,354 | ||
| ||||
Investments in affiliated money market funds, at value | 46,605,928 | |||
| ||||
Other investments: | ||||
Variation margin receivable – futures contracts | 144,149 | |||
| ||||
Deposits with brokers: | ||||
Cash collateral – exchange-traded futures contracts | 283,200 | |||
| ||||
Receivable for: | ||||
Fund shares sold | 9,688 | |||
| ||||
Dividends | 385,914 | |||
| ||||
Interest | 333,371 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 105,024 | |||
| ||||
Other assets | 39,941 | |||
| ||||
Total assets | 185,810,569 | |||
| ||||
Liabilities: | ||||
Payable for: | ||||
Investments purchased | 1,279,000 | |||
| ||||
Fund shares reacquired | 24,351 | |||
| ||||
Amount due custodian | 51,108 | |||
| ||||
Collateral upon return of securities loaned | 2,012,113 | |||
| ||||
Accrued fees to affiliates | 79,840 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 998 | |||
| ||||
Accrued other operating expenses | 40,744 | |||
| ||||
Trustee deferred compensation and retirement plans | 110,715 | |||
| ||||
Total liabilities | 3,598,869 | |||
| ||||
Net assets applicable to shares outstanding | $ | 182,211,700 | ||
| ||||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 185,422,040 | ||
| ||||
Distributable earnings (loss) | (3,210,340 | ) | ||
| ||||
$ | 182,211,700 | |||
|
Net Assets: | ||||
Class A | $ | 136,200,843 | ||
| ||||
Class C | $ | 2,749,544 | ||
| ||||
Class R | $ | 746,906 | ||
| ||||
Class Y | $ | 9,019,674 | ||
| ||||
Investor Class | $ | 33,261,469 | ||
| ||||
Class R5 | $ | 198,593 | ||
| ||||
Class R6 | $ | 34,671 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 12,965,114 | |||
| ||||
Class C | 266,572 | |||
| ||||
Class R | 71,463 | |||
| ||||
Class Y | 854,760 | |||
| ||||
Investor Class | 3,153,950 | |||
| ||||
Class R5 | 19,002 | |||
| ||||
Class R6 | 3,285 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 10.51 | ||
| ||||
Maximum offering price per share | $ | 11.12 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 10.31 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 10.45 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 10.55 | ||
| ||||
Investor Class: | ||||
Net asset value and offering price per share | $ | 10.55 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 10.45 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 10.55 | ||
|
* | At February 29, 2024, securities with an aggregate value of $1,967,695 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 | Invesco Income Advantage U.S. Fund |
Statement of Operations
For the six months ended February 29, 2024
(Unaudited)
Investment income: | ||||
Interest | $ | 4,845,804 | ||
| ||||
Dividends (net of foreign withholding taxes of $96) | 1,152,703 | |||
| ||||
Dividends from affiliated money market funds (includes net securities lending income of $41,381) | 994,893 | |||
| ||||
Total investment income | 6,993,400 | |||
| ||||
Expenses: | ||||
Advisory fees | 540,676 | |||
| ||||
Administrative services fees | 12,768 | |||
| ||||
Custodian fees | 21,422 | |||
| ||||
Distribution fees: | ||||
Class A | 160,065 | |||
| ||||
Class C | 13,354 | |||
| ||||
Class R | 1,711 | |||
| ||||
Investor Class | 40,226 | |||
| ||||
Transfer agent fees – A, C, R, Y and Investor | 119,323 | |||
| ||||
Transfer agent fees – R5 | 1,514 | |||
| ||||
Transfer agent fees – R6 | 6 | |||
| ||||
Trustees’ and officers’ fees and benefits | 11,038 | |||
| ||||
Registration and filing fees | 46,410 | |||
| ||||
Reports to shareholders | 27,615 | |||
| ||||
Professional services fees | 29,478 | |||
| ||||
Other | 9,896 | |||
| ||||
Total expenses | 1,035,502 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (54,627 | ) | ||
| ||||
Net expenses | 980,875 | |||
| ||||
Net investment income | 6,012,525 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | (4,148,256 | ) | ||
| ||||
Affiliated investment securities | 4,802 | |||
| ||||
Foreign currencies | (586 | ) | ||
| ||||
Futures contracts | 110,226 | |||
| ||||
(4,033,814 | ) | |||
| ||||
Change in net unrealized appreciation of: | ||||
Unaffiliated investment securities | 14,890,831 | |||
| ||||
Affiliated investment securities | 1,428 | |||
| ||||
Foreign currencies | 8 | |||
| ||||
Futures contracts | 91,826 | |||
| ||||
14,984,093 | ||||
| ||||
Net realized and unrealized gain | 10,950,279 | |||
| ||||
Net increase in net assets resulting from operations | $ | 16,962,804 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 | Invesco Income Advantage U.S. Fund |
Statement of Changes in Net Assets
For the six months ended February 29, 2024 and the year ended August 31, 2023
(Unaudited)
February 29, 2024 | August 31, 2023 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 6,012,525 | $ | 12,337,964 | ||||
| ||||||||
Net realized gain (loss) | (4,033,814 | ) | (7,979,585 | ) | ||||
| ||||||||
Change in net unrealized appreciation | 14,984,093 | 15,939,420 | ||||||
| ||||||||
Net increase in net assets resulting from operations | 16,962,804 | 20,297,799 | ||||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (4,376,045 | ) | (8,487,191 | ) | ||||
| ||||||||
Class C | (81,442 | ) | (163,948 | ) | ||||
| ||||||||
Class R | (22,427 | ) | (35,395 | ) | ||||
| ||||||||
Class Y | (310,155 | ) | (597,025 | ) | ||||
| ||||||||
Investor Class | (1,101,441 | ) | (2,109,098 | ) | ||||
| ||||||||
Class R5 | (278,998 | ) | (762,769 | ) | ||||
| ||||||||
Class R6 | (1,507 | ) | (2,707 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (6,172,015 | ) | (12,158,133 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (832,008 | ) | (1,600,712 | ) | ||||
| ||||||||
Class C | (117,492 | ) | (350,757 | ) | ||||
| ||||||||
Class R | 47,260 | 136,942 | ||||||
| ||||||||
Class Y | (359,467 | ) | 176,230 | |||||
| ||||||||
Investor Class | (1,866,343 | ) | 1,591,244 | |||||
| ||||||||
Class R5 | (11,568,925 | ) | 649,033 | |||||
| ||||||||
Class R6 | (16,520 | ) | 17,741 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (14,713,495 | ) | 619,721 | |||||
| ||||||||
Net increase (decrease) in net assets | (3,922,706 | ) | 8,759,387 | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 186,134,406 | 177,375,019 | ||||||
| ||||||||
End of period | $ | 182,211,700 | $ | 186,134,406 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 | Invesco Income Advantage U.S. Fund |
(Unaudited)
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 02/29/24 | $ | 9.90 | $ | 0.33 | $ | 0.62 | $ | 0.95 | $ | (0.34 | ) | $ | – | $ | (0.34 | ) | $ | 10.51 | 9.85 | % | $ | 136,201 | 1.11 | %(d) | 1.17 | %(d) | 6.65 | %(d) | 25 | % | ||||||||||||||||||||||||||
Year ended 08/31/23 | 9.46 | 0.65 | 0.44 | 1.09 | (0.65 | ) | – | (0.65 | ) | 9.90 | 12.08 | 129,132 | 1.04 | 1.14 | 6.93 | 46 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 12.29 | 0.59 | (1.64 | ) | (1.05 | ) | (0.59 | ) | (1.19 | ) | (1.78 | ) | 9.46 | (9.88 | ) | 125,096 | 1.05 | 1.14 | 5.52 | 44 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 10.24 | 0.13 | 2.07 | 2.20 | (0.15 | ) | – | (0.15 | ) | 12.29 | 21.70 | 150,436 | 1.16 | 1.17 | 1.15 | 143 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 10.43 | 0.17 | (0.20 | ) | (0.03 | ) | (0.16 | ) | – | (0.16 | ) | 10.24 | (0.15 | ) | 136,770 | 1.18 | 1.18 | 1.63 | 122 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 12.13 | 0.17 | (1.54 | ) | (1.37 | ) | (0.13 | ) | (0.20 | ) | (0.33 | ) | 10.43 | (11.34 | ) | 153,641 | 1.18 | 1.18 | 1.54 | 117 | ||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 9.72 | 0.29 | 0.59 | 0.88 | (0.29 | ) | – | (0.29 | ) | 10.31 | 9.34 | 2,750 | 1.86 | (d) | 1.92 | (d) | 5.90 | (d) | 25 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 9.29 | 0.57 | 0.43 | 1.00 | (0.57 | ) | – | (0.57 | ) | 9.72 | 11.22 | 2,704 | 1.79 | 1.89 | 6.18 | 46 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 12.07 | 0.51 | (1.61 | ) | (1.10 | ) | (0.49 | ) | (1.19 | ) | (1.68 | ) | 9.29 | (10.51 | ) | 2,942 | 1.80 | 1.89 | 4.77 | 44 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 10.06 | 0.04 | 2.04 | 2.08 | (0.07 | ) | – | (0.07 | ) | 12.07 | 20.74 | 3,748 | 1.91 | 1.92 | 0.40 | 143 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 10.24 | 0.09 | (0.19 | ) | (0.10 | ) | (0.08 | ) | – | (0.08 | ) | 10.06 | (0.87 | ) | 4,001 | 1.93 | 1.93 | 0.88 | 122 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 11.92 | 0.09 | (1.53 | ) | (1.44 | ) | (0.04 | ) | (0.20 | ) | (0.24 | ) | 10.24 | (12.05 | ) | 4,627 | 1.93 | 1.93 | 0.79 | 117 | ||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 9.85 | 0.31 | 0.61 | 0.92 | (0.32 | ) | – | (0.32 | ) | 10.45 | 9.75 | 747 | 1.36 | (d) | 1.42 | (d) | 6.40 | (d) | 25 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 9.41 | 0.63 | 0.43 | 1.06 | (0.62 | ) | – | (0.62 | ) | 9.85 | 11.83 | 656 | 1.29 | 1.39 | 6.68 | 46 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 12.23 | 0.57 | (1.64 | ) | (1.07 | ) | (0.56 | ) | (1.19 | ) | (1.75 | ) | 9.41 | (10.13 | ) | 492 | 1.30 | 1.39 | 5.27 | 44 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 10.19 | 0.10 | 2.06 | 2.16 | (0.12 | ) | – | (0.12 | ) | 12.23 | 21.39 | 691 | 1.41 | 1.42 | 0.90 | 143 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 10.38 | 0.14 | (0.19 | ) | (0.05 | ) | (0.14 | ) | – | (0.14 | ) | 10.19 | (0.42 | ) | 565 | 1.43 | 1.43 | 1.38 | 122 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 12.07 | 0.14 | (1.53 | ) | (1.39 | ) | (0.10 | ) | (0.20 | ) | (0.30 | ) | 10.38 | (11.54 | ) | 526 | 1.43 | 1.43 | 1.29 | 117 | ||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 9.94 | 0.34 | 0.62 | 0.96 | (0.35 | ) | – | (0.35 | ) | 10.55 | 9.96 | 9,020 | 0.86 | (d) | 0.92 | (d) | 6.90 | (d) | 25 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 9.51 | 0.68 | 0.42 | 1.10 | (0.67 | ) | – | (0.67 | ) | 9.94 | 12.22 | 8,856 | 0.79 | 0.89 | 7.18 | 46 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 12.35 | 0.62 | (1.64 | ) | (1.02 | ) | (0.63 | ) | (1.19 | ) | (1.82 | ) | 9.51 | (9.61 | ) | 8,271 | 0.80 | 0.89 | 5.77 | 44 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 10.29 | 0.15 | 2.08 | 2.23 | (0.17 | ) | – | (0.17 | ) | 12.35 | 22.00 | 8,370 | 0.91 | 0.92 | 1.40 | 143 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 10.48 | 0.19 | (0.19 | ) | 0.00 | (0.19 | ) | – | (0.19 | ) | 10.29 | 0.12 | 7,344 | 0.93 | 0.93 | 1.88 | 122 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 12.19 | 0.20 | (1.55 | ) | (1.35 | ) | (0.16 | ) | (0.20 | ) | (0.36 | ) | 10.48 | (11.14 | ) | 8,322 | 0.93 | 0.93 | 1.79 | 117 | ||||||||||||||||||||||||||||||||||||
Investor Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 9.93 | 0.33 | 0.63 | 0.96 | (0.34 | ) | – | (0.34 | ) | 10.55 | 9.93 | 33,261 | 1.11 | (d) | 1.17 | (d) | 6.65 | (d) | 25 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 9.50 | 0.66 | 0.42 | 1.08 | (0.65 | ) | – | (0.65 | ) | 9.93 | 11.95 | 33,187 | 1.04 | 1.14 | 6.93 | 46 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 12.33 | 0.60 | (1.64 | ) | (1.04 | ) | (0.60 | ) | (1.19 | ) | (1.79 | ) | 9.50 | (9.82 | ) | 30,152 | 1.05 | 1.14 | 5.52 | 44 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 10.28 | 0.13 | 2.07 | 2.20 | (0.15 | ) | – | (0.15 | ) | 12.33 | 21.61 | 36,982 | 1.16 | 1.17 | 1.15 | 143 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 10.47 | 0.17 | (0.20 | ) | (0.03 | ) | (0.16 | ) | – | (0.16 | ) | 10.28 | (0.14 | ) | 33,343 | 1.18 | 1.18 | 1.63 | 122 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 12.17 | 0.17 | (1.54 | ) | (1.37 | ) | (0.13 | ) | (0.20 | ) | (0.33 | ) | 10.47 | (11.30 | ) | 36,647 | 1.18 | 1.18 | 1.54 | 117 | ||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 9.95 | 0.34 | 0.52 | 0.86 | (0.36 | ) | – | (0.36 | ) | 10.45 | 8.85 | 199 | 0.80 | (d) | 0.82 | (d) | 6.96 | (d) | 25 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 9.52 | 0.69 | 0.42 | 1.11 | (0.68 | ) | – | (0.68 | ) | 9.95 | 12.27 | 11,550 | 0.75 | 0.77 | 7.22 | 46 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 12.36 | 0.63 | (1.64 | ) | (1.01 | ) | (0.64 | ) | (1.19 | ) | (1.83 | ) | 9.52 | (9.55 | ) | 10,393 | 0.76 | 0.77 | 5.81 | 44 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 10.30 | 0.18 | 2.08 | 2.26 | (0.20 | ) | – | (0.20 | ) | 12.36 | 22.23 | 11,702 | 0.72 | 0.72 | 1.59 | 143 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 10.50 | 0.21 | (0.20 | ) | 0.01 | (0.21 | ) | – | (0.21 | ) | 10.30 | 0.26 | 9,498 | 0.74 | 0.74 | 2.07 | 122 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 12.21 | 0.22 | (1.56 | ) | (1.34 | ) | (0.17 | ) | (0.20 | ) | (0.37 | ) | 10.50 | (10.96 | ) | 11,073 | 0.75 | 0.75 | 1.97 | 117 | ||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 9.95 | 0.34 | 0.61 | 0.95 | (0.35 | ) | – | (0.35 | ) | 10.55 | 9.89 | 35 | 0.79 | (d) | 0.81 | (d) | 6.97 | (d) | 25 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 9.51 | 0.69 | 0.43 | 1.12 | (0.68 | ) | – | (0.68 | ) | 9.95 | 12.39 | 49 | 0.75 | 0.77 | 7.22 | 46 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 12.36 | 0.63 | (1.65 | ) | (1.02 | ) | (0.64 | ) | (1.19 | ) | (1.83 | ) | 9.51 | (9.64 | ) | 29 | 0.75 | 0.77 | 5.82 | 44 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 10.30 | 0.17 | 2.09 | 2.26 | (0.20 | ) | – | (0.20 | ) | 12.36 | 22.23 | 37 | 0.72 | 0.72 | 1.59 | 143 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 10.49 | 0.21 | (0.19 | ) | 0.02 | (0.21 | ) | – | (0.21 | ) | 10.30 | 0.35 | 107 | 0.73 | 0.73 | 2.08 | 122 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 12.20 | 0.22 | (1.55 | ) | (1.33 | ) | (0.18 | ) | (0.20 | ) | (0.38 | ) | 10.49 | (10.96 | ) | 1,317 | 0.73 | 0.73 | 1.99 | 117 |
(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) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 | Invesco Income Advantage U.S. Fund |
February 29, 2024
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Income Advantage U.S. 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 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 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, Investor Class, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices 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, and their value may be adjusted accordingly. 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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). 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 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.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
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 mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally 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.
16 | Invesco Income Advantage U.S. Fund |
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
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 an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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. 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, 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 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 based on relative net assets of Class R5 and Class R6. 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. | Equity-Linked Notes – The Fund may invest in Equity-Linked Notes (ELNs). ELNs are hybrid derivative-type instruments, in a single note form, that are specially designed to combine the characteristics of one or more reference securities (such as a single stock, an exchange traded fund, exchange-traded note, or an index or basket of securities (underlying securities)) and a related equity derivative, such as a put or call option. Generally, when purchasing an ELN, the Fund pays the counterparty the current value of the underlying securities plus a commission. Upon the maturity of the note, the Fund generally receives the par value of the note plus a return based on the appreciation of the underlying securities. Investments in ELNs possess the risks associated with the underlying securities, such as management risk, market risk and, as applicable, foreign securities and currency risks. In addition, as a note, ELNs are also subject to certain debt securities risks, such as interest rate and credit risk. An investment in an ELN also bears the risk that the ELN issuer will default or become bankrupt. In such an event, the Fund may have difficulty being repaid, or fail to be repaid, the principal amount of, or income from, its investment. As the holder of an ELN, the Fund generally has no rights to the underlying securities, including no voting rights or rights to receive dividends. Should the prices of the underlying securities movein an unexpected manner, the Fund may not achieve the anticipated benefits of its ELN investments, and it may realize losses, which could be significant and could include the Fund’s entire principal investment. |
J. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “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 |
17 | Invesco Income Advantage U.S. Fund |
of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 29, 2024, fees paid to the Adviser were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. 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 | 0.600 | % | ||
Next $250 million | 0.575 | % | ||
Next $500 million | 0.550 | % | ||
Next $1.5 billion | 0.525 | % | ||
Next $2.5 billion | 0.500 | % | ||
Next $2.5 billion | 0.475 | % | ||
Next $2.5 billion | 0.450 | % | ||
Over $10 billion | 0.425 | % |
For the six months ended February 29, 2024, the effective advisory fee rate incurred by the Fund was 0.60%.
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).
Effective January 1, 2024, the Adviser has agreed, for an indefinite period, 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, 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 “boundary limits”). Prior to January 1, 2024, the Adviser had contractually agreed 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, Investor Class, Class R5 and Class R6 shares to 1.06%, 1.81%, 1.31%, 0.81%, 1.06%, 0.81% and 0.81%, 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. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes.
Further, the Adviser has contractually agreed, through at least June 30, 2025, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the six months ended February 29, 2024, the Adviser waived advisory fees of $19,703 and reimbursed class level expenses of $20,776, $438, $113, $1,411, $5,241, $0 and $0 of Class A, Class C, Class R, Class Y, Investor Class, 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 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
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 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class 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, 0.50% of the average daily net assets of Class R shares and 0.25% of the average daily net assets of Investor Class shares. Of the Plans 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
18 | Invesco Income Advantage U.S. Fund |
asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 29, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 29, 2024, IDI advised the Fund that IDI retained $5,001 in front-end sales commissions from the sale of Class A shares and $0 and $2 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the six months ended February 29, 2024, the Fund incurred $3,209 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. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of February 29, 2024. 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 | $ | 133,721,377 | $ | – | $– | $ | 133,721,377 | |||||||||
Equity Linked Notes | – | 4,181,977 | – | 4,181,977 | ||||||||||||
Money Market Funds | 44,593,875 | 2,012,053 | – | 46,605,928 | ||||||||||||
Total Investments in Securities | 178,315,252 | 6,194,030 | – | 184,509,282 | ||||||||||||
Other Investments - Assets* | ||||||||||||||||
Futures Contracts | 91,826 | – | – | 91,826 | ||||||||||||
Total Investments | $ | 178,407,078 | $ | 6,194,030 | $– | $ | 184,601,108 |
* | Unrealized appreciation. |
NOTE 4–Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
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 29, 2024:
Value | ||||
Derivative Assets | Equity Risk | |||
Unrealized appreciation on futures contracts - Exchange-Traded(a) | $ | 91,826 | ||
| ||||
Derivatives not subject to master netting agreements | (91,826 | ) | ||
Total Derivative Assets subject to master netting agreements | $ | — | ||
|
(a) | The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities. |
19 | Invesco Income Advantage U.S. Fund |
Effect of Derivative Investments for the six months ended February 29, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain on Statement of Operations | ||||
Equity Risk | ||||
| ||||
Realized Gain: | ||||
Futures contracts | $110,226 | |||
| ||||
Change in Net Unrealized Appreciation: | ||||
Futures contracts | 91,826 | |||
| ||||
Total | $202,052 | |||
|
The table below summarizes the average notional value of derivatives held during the period.
Futures Contracts | ||||
| ||||
Average notional value | $ | 6,958,650 | ||
|
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 29, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $6,945.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 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 fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2023, as follows:
Capital Loss Carryforward* | ||||||||||
| ||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||
| ||||||||||
Not subject to expiration | $ | 21,949,816 | $2,598,007 | $ | 24,547,823 | |||||
|
* | Capital loss carryforward 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. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 29, 2024 was $30,998,011 and $39,316,457, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
| ||||
Aggregate unrealized appreciation of investments | $ | 27,427,543 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (2,712,835 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 24,714,708 | ||
|
Cost of investments for tax purposes is $159,886,400.
20 | Invesco Income Advantage U.S. Fund |
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
February 29, 2024 | August 31, 2023 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 287,547 | $ | 2,867,467 | 416,231 | $ | 3,968,443 | ||||||||||
| ||||||||||||||||
Class C | 16,653 | 161,251 | 62,905 | 588,275 | ||||||||||||
| ||||||||||||||||
Class R | 8,891 | 87,986 | 18,148 | 174,210 | ||||||||||||
| ||||||||||||||||
Class Y | 79,606 | 796,428 | 151,473 | 1,424,849 | ||||||||||||
| ||||||||||||||||
Investor Class | 12,335 | 121,760 | 337,047 | 3,209,757 | ||||||||||||
| ||||||||||||||||
Class R5 | 4,291 | 40,641 | 48 | 471 | ||||||||||||
| ||||||||||||||||
Class R6 | - | - | 1,684 | 15,688 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 402,220 | 3,964,427 | 814,482 | 7,657,487 | ||||||||||||
| ||||||||||||||||
Class C | 8,050 | 77,890 | 16,585 | 152,956 | ||||||||||||
| ||||||||||||||||
Class R | 2,286 | 22,424 | 3,717 | 34,825 | ||||||||||||
| ||||||||||||||||
Class Y | 25,141 | 248,918 | 51,321 | 484,830 | ||||||||||||
| ||||||||||||||||
Investor Class | 107,659 | 1,064,608 | 214,758 | 2,028,154 | ||||||||||||
| ||||||||||||||||
Class R5 | 28,429 | 276,641 | 80,145 | 758,155 | ||||||||||||
| ||||||||||||||||
Class R6 | 119 | 1,171 | 217 | 2,065 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 17,607 | 177,417 | 25,301 | 237,587 | ||||||||||||
| ||||||||||||||||
Class C | (17,930 | ) | (177,417 | ) | (25,763 | ) | (237,587 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (791,736 | ) | (7,841,319 | ) | (1,427,536 | ) | (13,464,229 | ) | ||||||||
| ||||||||||||||||
Class C | (18,513 | ) | (179,216 | ) | (92,055 | ) | (854,401 | ) | ||||||||
| ||||||||||||||||
Class R | (6,305 | ) | (63,150 | ) | (7,558 | ) | (72,093 | ) | ||||||||
| ||||||||||||||||
Class Y | (140,895 | ) | (1,404,813 | ) | (181,981 | ) | (1,733,449 | ) | ||||||||
| ||||||||||||||||
Investor Class | (306,734 | ) | (3,052,711 | ) | (385,314 | ) | (3,646,667 | ) | ||||||||
| ||||||||||||||||
Class R5 | (1,174,392 | ) | (11,886,207 | ) | (11,670 | ) | (109,593 | ) | ||||||||
| ||||||||||||||||
Class R6 | (1,782 | ) | (17,691 | ) | (1 | ) | (12 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (1,457,453 | ) | $ | (14,713,495 | ) | 62,184 | $ | 619,721 | ||||||||
|
21 | Invesco Income Advantage U.S. 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, 2023 through February 29, 2024.
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 (09/01/23) | Ending Account Value (02/29/24)1 | Expenses Period2 | Ending (02/29/24) | Expenses Period2 | ||||||||
Class A | $1,000.00 | $1,098.50 | $5.79 | $1,019.34 | $5.57 | 1.11% | ||||||
Class C | 1,000.00 | 1,093.40 | 9.68 | 1,015.61 | 9.32 | 1.86 | ||||||
Class R | 1,000.00 | 1,097.50 | 7.09 | 1,018.10 | 6.82 | 1.36 | ||||||
Class Y | 1,000.00 | 1,099.60 | 4.49 | 1,020.59 | 4.32 | 0.86 | ||||||
Investor Class | 1,000.00 | 1,099.30 | 5.79 | 1,019.34 | 5.57 | 1.11 | ||||||
Class R5 | 1,000.00 | 1,099.90 | 4.18 | 1,020.89 | 4.02 | 0.80 | ||||||
Class R6 | 1,000.00 | 1,098.90 | 4.12 | 1,020.93 | 3.97 | 0.79 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2023 through February 29, 2024, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
22 | Invesco Income Advantage U.S. Fund |
A Special Joint Meeting (“Meeting”) of Shareholders of AIM Counselor Series Trust (Invesco Counselor Series Trust), a Delaware statutory trust (“Trust”), was held on January 16, 2024. The Meeting was held for the following purpose:
(1) | Elect 14 trustees to the Board of Trustees of the Trust, each of whom will serve until his or her successor is duly elected and qualified. |
The results of the voting on the above matter were as follows:
Matter | Votes For | Votes Against/Withheld | ||||||||
(1)* | Beth Ann Brown | 3,109,848,785.61 | 65,706,470.15 | |||||||
Carol Deckbar | 3,109,186,378.07 | 66,368,877.70 | ||||||||
Cynthia Hostetler | 3,108,148,647.37 | 67,406,608.40 | ||||||||
Dr. Eli Jones | 3,106,962,123.35 | 68,593,132.42 | ||||||||
Elizabeth Krentzman. | 3,109,153,762.02 | 66,401,493.75 | ||||||||
Jeffrey H. Kupor | 3,109,094,174.85 | 66,461,080.92 | ||||||||
Anthony J. LaCava, Jr. | 3,107,453,603.09 | 68,101,652.67 | ||||||||
James Liddy | 3,108,418,832.17 | 67,136,423.60 | ||||||||
Dr. Prema Mathai-Davis | 3,100,922,564.57 | 74,632,691.20 | ||||||||
Joel W. Motley | 3,104,496,522.60 | 71,058,733.17 | ||||||||
Teresa M. Ressel | 3,109,248,693.76 | 66,306,562.01 | ||||||||
Douglas Sharp | 3,108,681,578.09 | 66,873,677.67 | ||||||||
Robert C. Troccoli | 3,104,038,320.81 | 71,516,934.96 | ||||||||
Daniel S. Vandivort | 3,106,373,978.14 | 69,181,277.62 |
* Proposal 1 required approval by a combined vote of all the portfolios of AIM Counselor Series Trust (Invesco Counselor Series Trust).
23 | Invesco Income Advantage U.S. Fund |
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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, 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/ corporate/about-us/esg. 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. This 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 number(s): 811-09913 and 333-36074 | Invesco Distributors, Inc. | LVEY-SAR-1 |
Semiannual Report to Shareholders | February 29, 2024 |
Invesco NASDAQ 100 Index Fund
Nasdaq:
R6: IVNQX
2 | Fund Performance | |
4 | Schedule of Investments | |
7 | Financial Statements | |
10 | Financial Highlights | |
11 | Notes to Financial Statements | |
16 | Fund Expenses | |
17 | Proxy Results |
Beginning in July 2024, amendments adopted by the Securities and Exchange Commission will substantially impact the design, content, and delivery of shareholder reports. These newly designed shareholder reports will highlight key fund information in a clear and concise format and must be mailed to each shareholder that has not elected to receive the reports electronically. Other information, including financial statements, will no longer be included in the shareholder report but will be available at invesco.com/reports, delivered upon request, and filed on a semi-annual basis on Form N-CSR.
If you would like to receive shareholder reports and other communications electronically instead of by mail, you may make that request 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. If you do not make this request or enroll in e-delivery, you will receive future shareholder reports and other communications by mail.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is 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
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Fund vs. Indexes |
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Cumulative total returns, 8/31/23 to 2/29/24, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class R6 Shares | 16.80 | % | ||
NASDAQ Composite Index▼ (Broad Market/Style-Specific Index)* | 15.09 | |||
Nasdaq-100 Index▼ (Broad Market/Style-Specific Index)* | 16.89 | |||
Source(s): ▼Bloomberg LP |
| |||
*Effective December 15, 2023, the Fund changed its broad-based securities market benchmark from the Nasdaq-100 Index to the NASDAQ Composite Index to reflect that the NASDAQ Composite Index can be considered more broadly representative of the overall applicable securities market. |
| |||
The Nasdaq-100® Index includes 100 of the largest domestic and international nonfinancial securities listed on The Nasdaq Stock Market, based on the market capitalization. |
| |||
The NASDAQ Composite Index is a broad-based, market index of the common stocks and similar securities listed on the Nasdaq stock market. |
| |||
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 visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
2 | Invesco NASDAQ 100 Index Fund |
Average Annual Total Returns |
| |||
As of 2/29/24 |
| |||
Class R6 Shares |
| |||
Inception (10/13/20) | 13.37 | % | ||
1 Year | 50.71 |
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Performance figures reflect reinvested distributions and changes in net asset value. Shares of the Fund are sold at net asset value without a sales charge. 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.
Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 | Invesco NASDAQ 100 Index Fund |
February 29, 2024
(Unaudited)
Shares | Value | |||||
Common Stocks & Other Equity Interests–97.44% | ||||||
Advertising–0.27% | ||||||
Trade Desk, Inc. (The), Class A(b) | 1,643 | $ 140,361 | ||||
Apparel Retail–0.36% | ||||||
Ross Stores, Inc. | 1,252 | 186,498 | ||||
Apparel, Accessories & Luxury Goods–0.41% | ||||||
lululemon athletica, inc.(b) | 456 | 212,993 | ||||
Application Software–6.59% | ||||||
Adobe, Inc.(b) | 1,699 | 951,916 | ||||
ANSYS, Inc.(b) | 320 | 106,934 | ||||
Atlassian Corp., Class A(b)(c) | 571 | 118,437 | ||||
Autodesk, Inc.(b) | 791 | 204,212 | ||||
Cadence Design Systems, Inc.(b) | 1,019 | 310,163 | ||||
Datadog, Inc., Class A(b) | 1,112 | 146,184 | ||||
Intuit, Inc. | 1,045 | 692,720 | ||||
Roper Technologies, Inc. | 401 | 218,437 | ||||
Splunk, Inc.(b) | 620 | 96,856 | ||||
Synopsys, Inc.(b) | 564 | 323,584 | ||||
Workday, Inc., Class A(b) | 783 | 230,719 | ||||
3,400,162 | ||||||
Automobile Manufacturers–2.72% | ||||||
Tesla, Inc.(b) | 6,948 | 1,402,662 | ||||
Automotive Retail–0.47% | ||||||
O’Reilly Automotive, Inc.(b) | 222 | 241,407 | ||||
Biotechnology–3.72% | ||||||
Amgen, Inc.(c) | 1,999 | 547,386 | ||||
Biogen, Inc.(b) | 533 | 115,656 | ||||
Gilead Sciences, Inc. | 4,663 | 336,202 | ||||
Moderna, Inc.(b) | 1,403 | 129,413 | ||||
Regeneron Pharmaceuticals, Inc.(b) | 401 | 387,402 | ||||
Vertex Pharmaceuticals, Inc.(b) | 963 | 405,173 | ||||
1,921,232 | ||||||
Broadline Retail–6.30% | ||||||
Amazon.com, Inc.(b) | 14,918 | 2,636,905 | ||||
MercadoLibre, Inc. (Brazil)(b) | 189 | 301,512 | ||||
PDD Holdings, Inc., ADR (China)(b) | 2,498 | 311,101 | ||||
3,249,518 | ||||||
Cable & Satellite–1.68% | ||||||
Charter Communications, Inc., Class A(b)(c) | 557 | 163,719 | ||||
Comcast Corp., Class A | 15,000 | 642,750 | ||||
Sirius XM Holdings, Inc.(c) | 14,131 | 62,459 | ||||
868,928 | ||||||
Cargo Ground Transportation–0.35% | ||||||
Old Dominion Freight Line, Inc. | 410 | 181,417 | ||||
Communications Equipment–1.42% | ||||||
Cisco Systems, Inc. | 15,173 | 733,918 |
Shares | Value | |||||
Construction Machinery & Heavy Transportation Equipment– 0.42% | ||||||
PACCAR, Inc. | 1,964 | $ 217,788 | ||||
Consumer Staples Merchandise Retail–2.61% | ||||||
Costco Wholesale Corp. | 1,652 | 1,228,906 | ||||
Dollar Tree, Inc.(b) | 802 | 117,638 | ||||
1,346,544 | ||||||
Diversified Support Services–0.84% | ||||||
Cintas Corp. | 382 | 240,129 | ||||
Copart, Inc.(b) | 3,608 | 191,765 | ||||
431,894 | ||||||
Drug Retail–0.13% | ||||||
Walgreens Boots Alliance, Inc. | 3,180 | 67,607 | ||||
Electric Utilities–1.17% | ||||||
American Electric Power Co., Inc. | 1,936 | 164,928 | ||||
Constellation Energy Corp. | 1,176 | 198,097 | ||||
Exelon Corp. | 3,664 | 131,318 | ||||
Xcel Energy, Inc. | 2,031 | 107,013 | ||||
601,356 | ||||||
Health Care Equipment–1.95% | ||||||
DexCom, Inc.(b) | 1,454 | 167,312 | ||||
GE HealthCare Technologies, Inc. | 1,676 | 152,985 | ||||
IDEXX Laboratories, Inc.(b) | 309 | 177,746 | ||||
Intuitive Surgical, Inc.(b) | 1,316 | 507,450 | ||||
1,005,493 | ||||||
Hotels, Resorts & Cruise Lines–1.90% | ||||||
Airbnb, Inc., Class A(b) | 1,631 | 256,833 | ||||
Booking Holdings, Inc.(b) | 130 | 450,948 | ||||
Marriott International, Inc., Class A | 1,100 | 274,857 | ||||
982,638 | ||||||
Human Resource & Employment Services–1.07% | ||||||
Automatic Data Processing, Inc. | 1,539 | 386,489 | ||||
Paychex, Inc. | 1,330 | 163,085 | ||||
549,574 | ||||||
Industrial Conglomerates–0.95% | ||||||
Honeywell International, Inc. | 2,464 | 489,671 | ||||
Interactive Home Entertainment–0.45% | ||||||
Electronic Arts, Inc. | 991 | 138,225 | ||||
Take-Two Interactive Software, Inc.(b) | 626 | 91,978 | ||||
230,203 | ||||||
Interactive Media & Services–9.38% | ||||||
Alphabet, Inc., Class A(b) | 8,549 | 1,183,694 | ||||
Alphabet, Inc., Class C(b) | 8,269 | 1,155,841 | ||||
Meta Platforms, Inc., Class A | 5,098 | 2,498,683 | ||||
4,838,218 | ||||||
Internet Services & Infrastructure–0.23% | ||||||
MongoDB, Inc.(b) | 263 | 117,713 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 | Invesco NASDAQ 100 Index Fund |
Shares | Value | |||||||
| ||||||||
IT Consulting & Other Services–0.28% |
| |||||||
Cognizant Technology Solutions Corp., Class A | 1,846 | $ | 145,871 | |||||
| ||||||||
Life Sciences Tools & Services–0.16% |
| |||||||
Illumina, Inc.(b) | 585 | 81,801 | ||||||
| ||||||||
Movies & Entertainment–2.06% | ||||||||
Netflix, Inc.(b) | 1,633 | 984,568 | ||||||
| ||||||||
Warner Bros. Discovery, Inc.(b) | 8,976 | 78,899 | ||||||
| ||||||||
1,063,467 | ||||||||
| ||||||||
Oil & Gas Equipment & Services–0.21% |
| |||||||
Baker Hughes Co., Class A | 3,704 | 109,601 | ||||||
| ||||||||
Oil & Gas Exploration & Production–0.23% |
| |||||||
Diamondback Energy, Inc. | 659 | 120,281 | ||||||
| ||||||||
Packaged Foods & Meats–1.04% |
| |||||||
Kraft Heinz Co. (The) | 4,615 | 162,817 | ||||||
| ||||||||
Mondelez International, Inc., Class A | 5,092 | 372,073 | ||||||
| ||||||||
534,890 | ||||||||
| ||||||||
Pharmaceuticals–0.27% | ||||||||
AstraZeneca PLC, ADR (United Kingdom) | 2,143 | 137,495 | ||||||
| ||||||||
Rail Transportation–0.54% | ||||||||
CSX Corp. | 7,409 | 281,097 | ||||||
| ||||||||
Real Estate Services–0.25% | ||||||||
CoStar Group, Inc.(b) | 1,503 | 130,806 | ||||||
| ||||||||
Research & Consulting Services–0.25% |
| |||||||
Verisk Analytics, Inc. | 534 | 129,175 | ||||||
| ||||||||
Restaurants–1.11% | ||||||||
DoorDash, Inc., Class A(b) | 1,365 | 170,038 | ||||||
| ||||||||
Starbucks Corp. | 4,250 | 403,325 | ||||||
| ||||||||
573,363 | ||||||||
| ||||||||
Semiconductor Materials & Equipment–3.40% |
| |||||||
Applied Materials, Inc. | 3,125 | 630,062 | ||||||
| ||||||||
ASML Holding N.V., New York Shares (Netherlands) | 329 | 313,103 | ||||||
| ||||||||
KLA Corp. | 509 | 347,291 | ||||||
| ||||||||
Lam Research Corp. | 493 | 462,557 | ||||||
| ||||||||
1,753,013 | ||||||||
| ||||||||
Semiconductors–18.91% | ||||||||
Advanced Micro Devices, Inc.(b) | 6,029 | 1,160,763 | ||||||
| ||||||||
Analog Devices, Inc. | 1,857 | 356,210 | ||||||
| ||||||||
Broadcom, Inc. | 1,742 | 2,265,454 | ||||||
| ||||||||
GLOBALFOUNDRIES, Inc.(b)(c) | 2,016 | 110,215 | ||||||
| ||||||||
Intel Corp. | 15,747 | 677,908 | ||||||
| ||||||||
Marvell Technology, Inc. | 3,236 | 231,892 | ||||||
| ||||||||
Microchip Technology, Inc. | 1,998 | 168,112 | ||||||
| ||||||||
Micron Technology, Inc. | 4,132 | 374,400 | ||||||
| ||||||||
NVIDIA Corp. | 3,565 | 2,820,343 | ||||||
| ||||||||
NXP Semiconductors N.V. (China) | 967 | 241,489 | ||||||
| ||||||||
ON Semiconductor Corp.(b) | 1,585 | 125,088 | ||||||
| ||||||||
QUALCOMM, Inc. | 4,156 | 655,775 | ||||||
| ||||||||
Texas Instruments, Inc. | 3,394 | 567,918 | ||||||
| ||||||||
9,755,567 | ||||||||
|
Shares | Value | |||||||
| ||||||||
Soft Drinks & Non-alcoholic Beverages–2.61% |
| |||||||
Coca-Cola Europacific Partners PLC (United Kingdom)(c) | 1,681 | $ | 115,367 | |||||
| ||||||||
Keurig Dr Pepper, Inc. | 5,147 | 153,947 | ||||||
| ||||||||
Monster Beverage Corp.(b) | 3,859 | 228,067 | ||||||
| ||||||||
PepsiCo, Inc. | 5,131 | 848,359 | ||||||
| ||||||||
1,345,740 | ||||||||
| ||||||||
Systems Software–10.48% |
| |||||||
CrowdStrike Holdings, Inc., Class A(b) | 853 | 276,500 | ||||||
| ||||||||
Fortinet, Inc.(b) | 2,887 | 199,521 | ||||||
| ||||||||
Microsoft Corp. | 10,724 | 4,435,875 | ||||||
| ||||||||
Palo Alto Networks, Inc.(b)(c) | 1,171 | 363,654 | ||||||
| ||||||||
Zscaler, Inc.(b)(c) | 546 | 132,116 | ||||||
| ||||||||
5,407,666 | ||||||||
| ||||||||
Technology Distributors–0.24% |
| |||||||
CDW Corp.(c) | 493 | 121,381 | ||||||
| ||||||||
Technology Hardware, Storage & Peripherals–7.87% |
| |||||||
Apple, Inc.(d) | 22,447 | 4,057,295 | ||||||
| ||||||||
Trading Companies & Distributors–0.30% |
| |||||||
Fastenal Co. | 2,103 | 153,540 | ||||||
| ||||||||
Transaction & Payment Processing Services–0.47% |
| |||||||
PayPal Holdings, Inc.(b) | 4,047 | 244,196 | ||||||
| ||||||||
Wireless Telecommunication Services–1.37% |
| |||||||
T-Mobile US, Inc. | 4,319 | 705,293 | ||||||
| ||||||||
Total Common Stocks & Other Equity Interests (Cost $39,286,608) |
| 50,269,333 | ||||||
| ||||||||
Money Market Funds–1.97% |
| |||||||
Invesco Government & Agency Portfolio, Institutional Class, 5.24%(e)(f) | 355,252 | 355,252 | ||||||
| ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 5.41%(e)(f) | 253,682 | 253,809 | ||||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 5.23%(e)(f) | 406,002 | 406,002 | ||||||
| ||||||||
Total Money Market Funds (Cost $1,015,036) |
| 1,015,063 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES | 51,284,396 | |||||||
| ||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds–3.33% |
| |||||||
Invesco Private Government Fund, 5.29%(e)(f)(g) | 480,925 | 480,925 | ||||||
| ||||||||
Invesco Private Prime Fund, | 1,234,415 | 1,235,032 | ||||||
| ||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan |
| 1,715,957 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES–102.74% |
| 53,000,353 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES–(2.74)% |
| (1,413,574 | ) | |||||
| ||||||||
NET ASSETS–100.00% | $ | 51,586,779 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco NASDAQ 100 Index Fund |
Investment Abbreviations:
ADR – American Depositary Receipt
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at February 29, 2024. |
(d) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1I. |
(e) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 29, 2024. |
Value August 31, 2023 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value February 29, 2024 | Dividend Income | |||||||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | |||||||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ | 85,299 | $ | 5,676,581 | $ | (5,406,628 | ) | $ | - | $ | - | $ | 355,252 | $ | 9,406 | ||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 60,943 | 4,054,700 | (3,861,877 | ) | 27 | 16 | 253,809 | 6,942 | |||||||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 97,484 | 6,487,521 | (6,179,003 | ) | - | - | 406,002 | 10,737 | |||||||||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | |||||||||||||||||||||||||||||||||||
Invesco Private Government Fund | 209,007 | 4,267,485 | (3,995,567 | ) | - | - | 480,925 | 7,179 | * | ||||||||||||||||||||||||||
Invesco Private Prime Fund | 537,469 | 10,407,299 | (9,710,248 | ) | (58 | ) | 570 | 1,235,032 | 18,942 | * | |||||||||||||||||||||||||
Total | $ | 990,202 | $ | 30,893,586 | $ | (29,153,323 | ) | $ | (31 | ) | $ | 586 | $ | 2,731,020 | $ | 53,206 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(f) | The rate shown is the 7-day SEC standardized yield as of February 29, 2024. |
(g) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1H. |
Open Futures Contracts | ||||||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation | |||||||||||||||
Equity Risk | ||||||||||||||||||||
Micro E-Mini Nasdaq 100 Index | 29 | March-2024 | $1,048,800 | $48,922 | $48,922 |
Portfolio Composition
By sector, based on Net Assets
as of February 29, 2024
Information Technology | 49.42 | % | ||
Communication Services | 15.21 | |||
Consumer Discretionary | 13.28 | |||
Consumer Staples | 6.39 | |||
Health Care | 6.10 | |||
Industrials | 4.72 | |||
Other Sectors, Each Less than 2% of Net Assets | 2.33 | |||
Money Market Funds Plus Other Assets Less Liabilities | 2.55 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco NASDAQ 100 Index Fund |
Statement of Assets and Liabilities
February 29, 2024
(Unaudited)
Assets: | ||
Investments in unaffiliated securities, at value | $50,269,333 | |
Investments in affiliated money market funds, at value (Cost $ 2,731,051) | 2,731,020 | |
Other investments: | ||
Variation margin receivable – futures contracts | 9,479 | |
Cash | 312 | |
Receivable for: | ||
Investments sold | 21,887 | |
Fund shares sold | 294,150 | |
Fund expenses absorbed | 427 | |
Dividends | 50,244 | |
Investment for trustee deferred compensation and retirement plans | 13,167 | |
Other assets | 13,405 | |
Total assets | 53,403,424 | |
Liabilities: | ||
Payable for: | ||
Fund shares reacquired | 39,182 | |
Collateral upon return of securities loaned | 1,716,015 | |
Accrued fees to affiliates | 246 | |
Accrued trustees’ and officers’ fees and benefits | 839 | |
Accrued other operating expenses | 47,196 | |
Trustee deferred compensation and retirement plans | 13,167 | |
Total liabilities | 1,816,645 | |
Net assets applicable to shares outstanding | $51,586,779 |
Net assets consist of: | ||
Shares of beneficial interest | $41,472,756 | |
Distributable earnings | 10,114,023 | |
$51,586,779 | ||
Net Assets: | ||
Class R6 | $51,586,779 | |
Shares outstanding, no par value, with an unlimited number of shares authorized: | ||
Class R6 | 1,383,064 | |
Class R6: | ||
Net asset value and offering price per share | $ 37.30 |
* | At February 29, 2024, securities with an aggregate value of $1,673,476 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco NASDAQ 100 Index Fund |
Statement of Operations
For the six months ended February 29, 2024
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $315) | $ | 181,096 | ||
| ||||
Dividends from affiliated money market funds (includes net securities lending income of $9,724) | 36,809 | |||
| ||||
Total investment income | 217,905 | |||
| ||||
Expenses: | ||||
Advisory fees | 26,760 | |||
| ||||
Administrative services fees | 2,123 | |||
| ||||
Custodian fees | 6,663 | |||
| ||||
Transfer agent fees | 4,707 | |||
| ||||
Trustees’ and officers’ fees and benefits | 9,351 | |||
| ||||
Registration and filing fees | 11,061 | |||
| ||||
Licensing fees | 7,955 | |||
| ||||
Reports to shareholders | 4,261 | |||
| ||||
Professional services fees | 38,424 | |||
| ||||
Other | 2,290 | |||
| ||||
Total expenses | 113,595 | |||
| ||||
Less: Fees waived and/or expenses reimbursed | (61,622 | ) | ||
| ||||
Net expenses | 51,973 | |||
| ||||
Net investment income | 165,932 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: |
| |||
Unaffiliated investment securities | (35,212 | ) | ||
| ||||
Affiliated investment securities | 586 | |||
| ||||
Futures contracts | 59,694 | |||
| ||||
25,068 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | 6,532,391 | |||
| ||||
Affiliated investment securities | (31 | ) | ||
| ||||
Futures contracts | 49,948 | |||
| ||||
6,582,308 | ||||
| ||||
Net realized and unrealized gain | 6,607,376 | |||
| ||||
Net increase in net assets resulting from operations | $ | 6,773,308 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco NASDAQ 100 Index Fund |
Statement of Changes in Net Assets
For the six months ended February 29, 2024 and the year ended August 31, 2023
(Unaudited)
February 29, 2024 | August 31, 2023 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 165,932 | $ | 103,101 | ||||
| ||||||||
Net realized gain (loss) | 25,068 | (578,432 | ) | |||||
| ||||||||
Change in net unrealized appreciation | 6,582,308 | 4,986,242 | ||||||
| ||||||||
Net increase in net assets resulting from operations | 6,773,308 | 4,510,911 | ||||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class R6 | (110,091 | ) | (93,393 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class R6 | 20,393,108 | 11,317,009 | ||||||
| ||||||||
Net increase in net assets | 27,056,325 | 15,734,527 | ||||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 24,530,454 | 8,795,927 | ||||||
| ||||||||
End of period | $ | 51,586,779 | $ | 24,530,454 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco NASDAQ 100 Index Fund |
(Unaudited)
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 R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | $32.04 | $0.15 | $ 5.22 | $ 5.37 | $(0.11 | ) | $ – | $(0.11 | )(d) | $37.30 | 16.80 | % | $51,587 | 0.29 | %(e) | 0.63 | %(e) | 0.93 | %(d)(e) | 7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 25.23 | 0.19 | 6.80 | 6.99 | (0.18 | ) | – | (0.18 | ) | 32.04 | 27.88 | 24,530 | 0.29 | 1.12 | 0.69 | 46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 32.18 | 0.15 | (6.81 | ) | (6.66 | ) | (0.14 | ) | (0.15 | ) | (0.29 | ) | 25.23 | (20.86 | ) | 8,796 | 0.29 | 1.71 | 0.52 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended 08/31/21(f) | 25.00 | 0.11 | 7.18 | 7.29 | (0.11 | ) | – | (0.11 | ) | 32.18 | 29.24 | 4,396 | 0.29 | (e) | 5.30 | (e) | 0.46 | (e) | 6 |
(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 not annualized for periods less than one year, if applicable. |
(d) | Net investment income per share and the ratio of net investment income to average net assets include significant dividends received during the period ended February 29, 2024. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.13 and 0.87%, respectively. |
(e) | Annualized. |
(f) | Commencement date of October 13, 2020. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco NASDAQ 100 Index Fund |
February 29, 2024
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco NASDAQ 100 Index Fund (the “Fund”) is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company 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 track the investment results (before fees and expenses) of the NASDAQ-100 Index® (the “Underlying Index”).
The Fund currently consists of one class of shares, Class R6. 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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices 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, and their value may be adjusted accordingly. 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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). 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 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.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
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 mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally 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.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used.
11 | Invesco NASDAQ 100 Index Fund |
Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
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 an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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. 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.
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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, 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 the ex-dividend date. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
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. | 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. |
G. | 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. |
H. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 29, 2024, the Fund paid the Adviser $581 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
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 |
12 | Invesco NASDAQ 100 Index Fund |
they are standardized as to maturity date and underlying instrument or asset. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities. |
J. | Collateral – To the extent the Fund has 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. |
K. | Other Risks – The Fund is non-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. |
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. 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 | 0.150% | |||
| ||||
Over $2 billion | 0.140% | |||
|
For the six months ended February 29, 2024, the effective advisory fee rate incurred by the Fund was 0.15%.
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. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (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, 2024, 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 R6 shares to 0.29% of the Fund’s average daily net assets (the “expense limit”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on December 31, 2024. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. 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, 2025, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the six months ended February 29, 2024, the Adviser waived advisory fees of $26,760 and reimbursed Fund expenses of $34,862.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
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 or sub-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 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund’s shares. The Fund does not pay a distribution fee to IDI under the agreement.
For the six months ended February 29, 2024, the Fund incurred $225 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. 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. |
13 | Invesco NASDAQ 100 Index Fund |
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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of February 29, 2024. 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 | $50,269,333 | $ – | $– | $50,269,333 | ||||||||||||
| ||||||||||||||||
Money Market Funds | 1,015,063 | 1,715,957 | – | 2,731,020 | ||||||||||||
| ||||||||||||||||
Total Investments in Securities | 51,284,396 | 1,715,957 | – | 53,000,353 | ||||||||||||
| ||||||||||||||||
Other Investments - Assets* | ||||||||||||||||
| ||||||||||||||||
Futures Contracts | 48,922 | – | – | 48,922 | ||||||||||||
| ||||||||||||||||
Total Investments | $51,333,318 | $1,715,957 | $– | $53,049,275 | ||||||||||||
|
* | 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 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.
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 29, 2024:
Value | ||||
Equity | ||||
Derivative Assets | Risk | |||
| ||||
Unrealized appreciation on futures contracts –Exchange-Traded(a) | $ | 48,922 | ||
| ||||
Derivatives not subject to master netting agreements | (48,922 | ) | ||
| ||||
Total Derivative Assets subject to master netting agreements | $ | – | ||
|
(a) | The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities. |
Effect of Derivative Investments for the six months ended February 29, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain on | |||||
Statement of Operations | |||||
Equity | |||||
Risk | |||||
Realized Gain: | |||||
Futures contracts | $ | 59,694 | |||
Change in Net Unrealized Appreciation: | |||||
Futures contracts | 49,948 | ||||
Total | $ | 109,642 |
The table below summarizes the average notional value of derivatives held during the period.
Futures | ||||
Contracts | ||||
| ||||
Average notional value | $ | 807,605 | ||
|
NOTE 5–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees 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.
14 | Invesco NASDAQ 100 Index 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 at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 7–Distributions to Shareholders and Tax Components of Net Assets
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to .
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund does not have a capital loss carryforward as of February 29, 2024.
NOTE 8–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 29, 2024 was $22,416,159 and $2,476,142, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
| ||||
Aggregate unrealized appreciation of investments | $ | 10,429,044 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (420,044 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 10,009,000 | ||
|
Cost of investments for tax purposes is $43,040,275.
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
February 29, 2024(a) | August 31, 2023 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class R6 | 732,036 | $ | 24,332,914 | 567,499 | $ | 15,478,776 | ||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class R6 | 3,319 | 109,329 | 3,140 | 83,080 | ||||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class R6 | (117,843 | ) | (4,049,135 | ) | (153,652 | ) | (4,244,847 | ) | ||||||||
| ||||||||||||||||
Net increase in share activity | 617,512 | $ | 20,393,108 | 416,987 | $ | 11,317,009 | ||||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 74% 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. |
15 | Invesco NASDAQ 100 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, 2023 through February 29, 2024.
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 (09/01/23) | Ending Account Value (02/29/24)1 | Expenses Paid During Period2 | Ending Account Value (02/29/24) | Expenses Paid During Period2 | Annualized Ratio | |||||||
Class R6 | $1,000.00 | $1,168.00 | $1.56 | $1,023.42 | $1.46 | 0.29% |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2023 through February 29, 2024, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
16 | Invesco NASDAQ 100 Index Fund |
A Special Joint Meeting (“Meeting”) of Shareholders of AIM Counselor Series Trust (Invesco Counselor Series Trust), a Delaware statutory trust (“Trust”), was held on January 16, 2024. The Meeting was held for the following purpose:
(1) | Elect 14 trustees to the Board of Trustees of the Trust, each of whom will serve until his or her successor is duly elected and qualified. |
The results of the voting on the above matter were as follows:
Matter | Votes For | Votes Against/Withheld | ||||||||
| ||||||||||
(1)* | Beth Ann Brown | 3,109,848,785.61 | 65,706,470.15 | |||||||
Carol Deckbar | 3,109,186,378.07 | 66,368,877.70 | ||||||||
Cynthia Hostetler | 3,108,148,647.37 | 67,406,608.40 | ||||||||
Dr. Eli Jones. | 3,106,962,123.35 | 68,593,132.42 | ||||||||
Elizabeth Krentzman | 3,109,153,762.02 | 66,401,493.75 | ||||||||
Jeffrey H. Kupor | 3,109,094,174.85 | 66,461,080.92 | ||||||||
Anthony J. LaCava, Jr. | 3,107,453,603.09 | 68,101,652.67 | ||||||||
James Liddy | 3,108,418,832.17 | 67,136,423.60 | ||||||||
Dr. Prema Mathai-Davis | 3,100,922,564.57 | 74,632,691.20 | ||||||||
Joel W. Motley | 3,104,496,522.60 | 71,058,733.17 | ||||||||
Teresa M. Ressel | 3,109,248,693.76 | 66,306,562.01 | ||||||||
Douglas Sharp | 3,108,681,578.09 | 66,873,677.67 | ||||||||
Robert C. Troccoli | 3,104,038,320.81 | 71,516,934.96 | ||||||||
Daniel S. Vandivort | 3,106,373,978.14 | 69,181,277.62 |
* Proposal 1 required approval by a combined vote of all the portfolios of AIM Counselor Series Trust (Invesco Counselor Series Trust).
17 | Invesco NASDAQ 100 Index Fund |
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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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, 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/ corporate/about-us/esg. 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. This 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 number(s): 811-09913 and 333-36074 | Invesco Distributors, Inc. | NDQ-SAR-1 |
Semiannual Report to Shareholders | February 29, 2024 |
Invesco S&P 500 Index Fund
Nasdaq:
A: SPIAX ∎ C: SPICX ∎ Y: SPIDX ∎ R6: SPISX
2 | Fund Performance | |
4 | Schedule of Investments | |
13 | Financial Statements | |
16 | Financial Highlights | |
17 | Notes to Financial Statements | |
23 | Fund Expenses | |
24 | Proxy Results |
Beginning in July 2024, amendments adopted by the Securities and Exchange Commission will substantially impact the design, content, and delivery of shareholder reports. These newly designed shareholder reports will highlight key fund information in a clear and concise format and must be mailed to each shareholder that has not elected to receive the reports electronically. Other information, including financial statements, will no longer be included in the shareholder report but will be available at invesco.com/reports, delivered upon request, and filed on a semi-annual basis on Form N-CSR.
If you would like to receive shareholder reports and other communications electronically instead of by mail, you may make that request 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. If you do not make this request or enroll in e-delivery, you will receive future shareholder reports and other communications by mail.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is 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, 8/31/23 to 2/29/24, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 13.61 | % | ||
Class C Shares | 13.19 | |||
Class Y Shares | 13.75 | |||
Class R6 Shares | 13.82 | |||
S&P 500 Index▼ (Broad Market/Style-Specific Index) | 13.93 | |||
Lipper S&P 500 Objective Funds Index∎ (Peer Group Index) | 13.75 | |||
Source(s): ▼RIMES Technologies Corp.; ∎Lipper Inc. | ||||
The S&P 500® Index is an unmanaged index considered representative of the US stock market. |
| |||
The Lipper S&P 500 Objective Funds Index is an unmanaged index considered representative of S&P 500 funds tracked by Lipper. |
| |||
A direct investment cannot be made in an index. Unless other wise 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 visiting invesco.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, visit blog.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 2/29/24, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (9/26/97) | 7.73 | % | ||
10 Years | 11.45 | |||
5 Years | 12.87 | |||
1 Year | 22.61 | |||
Class C Shares | ||||
Inception (9/26/97) | 7.71 | % | ||
10 Years | 11.42 | |||
5 Years | 13.33 | |||
1 Year | 27.79 | |||
Class Y Shares | ||||
Inception (9/26/97) | 8.22 | % | ||
10 Years | 12.36 | |||
5 Years | 14.44 | |||
1 Year | 30.08 | |||
Class R6 Shares | ||||
10 Years | 12.33 | % | ||
5 Years | 14.52 | |||
1 Year | 30.22 |
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 those for Class A, Class C and Class I shares of the predecessor 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 the Fund’s Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
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 and Class R6 shares do not have a front-end sales charge or a
CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 | Invesco S&P 500 Index Fund |
February 29, 2024
(Unaudited)
Shares | Value | |||||||
| ||||||||
Common Stocks & Other Equity Interests–97.04% |
| |||||||
Advertising–0.07% | ||||||||
Interpublic Group of Cos., Inc. (The) | 24,780 | $ | 778,092 | |||||
| ||||||||
Omnicom Group, Inc. | 13,041 | 1,152,694 | ||||||
| ||||||||
1,930,786 | ||||||||
| ||||||||
Aerospace & Defense–1.47% |
| |||||||
Axon Enterprise, Inc.(b) | 4,714 | 1,448,942 | ||||||
| ||||||||
Boeing Co. (The)(b) | 38,057 | 7,752,972 | ||||||
| ||||||||
General Dynamics Corp. | 15,158 | 4,141,924 | ||||||
| ||||||||
Howmet Aerospace, Inc. | 26,177 | 1,742,079 | ||||||
| ||||||||
Huntington Ingalls Industries, Inc. | 2,594 | 756,462 | ||||||
| ||||||||
L3Harris Technologies, Inc. | 12,684 | 2,684,695 | ||||||
| ||||||||
Lockheed Martin Corp. | 14,777 | 6,328,103 | ||||||
| ||||||||
Northrop Grumman Corp. | 9,486 | 4,373,236 | ||||||
| ||||||||
RTX Corp. | 96,228 | 8,628,765 | ||||||
| ||||||||
Textron, Inc. | 13,055 | 1,162,809 | ||||||
| ||||||||
TransDigm Group, Inc. | 3,702 | 4,359,993 | ||||||
| ||||||||
43,379,980 | ||||||||
| ||||||||
Agricultural & Farm Machinery–0.22% |
| |||||||
Deere & Co. | 17,925 | 6,543,521 | ||||||
| ||||||||
Agricultural Products & Services–0.10% |
| |||||||
Archer-Daniels-Midland Co. | 35,695 | 1,895,762 | ||||||
| ||||||||
Bunge Global S.A. | 9,736 | 918,786 | ||||||
| ||||||||
2,814,548 | ||||||||
| ||||||||
Air Freight & Logistics–0.43% |
| |||||||
C.H. Robinson Worldwide, Inc. | 7,519 | 557,007 | ||||||
| ||||||||
Expeditors International of Washington, Inc. | 9,951 | 1,190,140 | ||||||
| ||||||||
FedEx Corp. | 15,480 | 3,854,056 | ||||||
| ||||||||
United Parcel Service, Inc., Class B | 48,402 | 7,176,080 | ||||||
| ||||||||
12,777,283 | ||||||||
| ||||||||
Apparel Retail–0.37% |
| |||||||
Ross Stores, Inc. | 22,662 | 3,375,732 | ||||||
| ||||||||
TJX Cos., Inc. (The) | 76,565 | 7,590,654 | ||||||
| ||||||||
10,966,386 | ||||||||
| ||||||||
Apparel, Accessories & Luxury Goods–0.18% |
| |||||||
lululemon athletica, inc.(b) | 7,706 | 3,599,395 | ||||||
| ||||||||
Ralph Lauren Corp. | 2,623 | 487,668 | ||||||
| ||||||||
Tapestry, Inc. | 15,258 | 725,213 | ||||||
| ||||||||
V.F. Corp. | 21,093 | 344,660 | ||||||
| ||||||||
5,156,936 | ||||||||
| ||||||||
Application Software–2.56% |
| |||||||
Adobe, Inc.(b) | 30,470 | 17,071,732 | ||||||
| ||||||||
ANSYS, Inc.(b) | 5,989 | 2,001,344 | ||||||
| ||||||||
Autodesk, Inc.(b) | 14,306 | 3,693,380 | ||||||
| ||||||||
Cadence Design Systems, Inc.(b) | 18,207 | 5,541,847 | ||||||
| ||||||||
Fair Isaac Corp.(b) | 1,654 | 2,100,431 | ||||||
| ||||||||
Intuit, Inc. | 18,756 | 12,433,165 | ||||||
| ||||||||
PTC, Inc.(b) | 7,953 | 1,455,478 | ||||||
Roper Technologies, Inc. | 7,149 | 3,894,275 | ||||||
| ||||||||
Salesforce, Inc.(b) | 65,115 | 20,108,814 | ||||||
|
Shares | Value | |||||||
| ||||||||
Application Software–(continued) |
| |||||||
Synopsys, Inc.(b) | 10,178 | $ | 5,839,424 | |||||
| ||||||||
Tyler Technologies, Inc.(b)(c) | 2,775 | 1,213,063 | ||||||
| ||||||||
75,352,953 | ||||||||
| ||||||||
Asset Management & Custody Banks–0.83% |
| |||||||
Ameriprise Financial, Inc. | 6,739 | 2,745,199 | ||||||
| ||||||||
Bank of New York Mellon Corp. (The) | 51,468 | 2,886,840 | ||||||
| ||||||||
BlackRock, Inc. | 9,358 | 7,592,520 | ||||||
| ||||||||
Blackstone, Inc., Class A | 47,551 | 6,077,969 | ||||||
| ||||||||
Franklin Resources, Inc.(c) | 18,456 | 506,617 | ||||||
| ||||||||
Invesco Ltd. (Acquired 08/22/2008-11/14/2023; Cost $596,060)(d)(e) | 28,970 | 446,428 | ||||||
| ||||||||
Northern Trust Corp. | 13,656 | 1,121,567 | ||||||
| ||||||||
State Street Corp. | 20,354 | 1,500,701 | ||||||
| ||||||||
T. Rowe Price Group, Inc. | 14,955 | 1,695,149 | ||||||
| ||||||||
24,572,990 | ||||||||
| ||||||||
Automobile Manufacturers–1.51% |
| |||||||
Ford Motor Co. | 263,146 | 3,273,536 | ||||||
| ||||||||
General Motors Co. | 91,649 | 3,755,776 | ||||||
| ||||||||
Tesla, Inc.(b) | 185,085 | 37,364,960 | ||||||
| ||||||||
44,394,272 | ||||||||
| ||||||||
Automotive Parts & Equipment–0.07% |
| |||||||
Aptiv PLC(b) | 18,930 | 1,504,745 | ||||||
| ||||||||
BorgWarner, Inc. | 15,352 | 477,908 | ||||||
| ||||||||
1,982,653 | ||||||||
| ||||||||
Automotive Retail–0.29% |
| |||||||
AutoZone, Inc.(b)(c) | 1,183 | 3,556,121 | ||||||
| ||||||||
CarMax, Inc.(b)(c) | 10,332 | 816,228 | ||||||
| ||||||||
O’Reilly Automotive, Inc.(b) | 3,935 | 4,278,998 | ||||||
| ||||||||
8,651,347 | ||||||||
| ||||||||
Biotechnology–1.89% |
| |||||||
AbbVie, Inc. | 118,154 | 20,801,012 | ||||||
| ||||||||
Amgen, Inc. | 35,815 | 9,807,221 | ||||||
| ||||||||
Biogen, Inc.(b) | 9,697 | 2,104,152 | ||||||
| ||||||||
Gilead Sciences, Inc. | 83,388 | 6,012,275 | ||||||
| ||||||||
Incyte Corp.(b) | 12,147 | 708,899 | ||||||
| ||||||||
Moderna, Inc.(b)(c) | 22,199 | 2,047,636 | ||||||
| ||||||||
Regeneron Pharmaceuticals, Inc.(b) | 7,169 | 6,925,899 | ||||||
| ||||||||
Vertex Pharmaceuticals, Inc.(b) | 17,245 | 7,255,661 | ||||||
| ||||||||
55,662,755 | ||||||||
| ||||||||
Brewers–0.03% |
| |||||||
Molson Coors Beverage Co., Class B | 12,137 | 757,592 | ||||||
| ||||||||
Broadcasting–0.04% |
| |||||||
Fox Corp., Class A | 17,084 | 508,933 | ||||||
| ||||||||
Fox Corp., Class B | 8,976 | 245,763 | ||||||
| ||||||||
Paramount Global, Class B(c) | 32,159 | 355,035 | ||||||
| ||||||||
1,109,731 | ||||||||
| ||||||||
Broadline Retail–3.72% |
| |||||||
Amazon.com, Inc.(b) | 608,252 | 107,514,624 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 | Invesco S&P 500 Index Fund |
Shares | Value | |||||||
| ||||||||
Broadline Retail–(continued) |
| |||||||
eBay, Inc. | 34,975 | $ | 1,653,618 | |||||
| ||||||||
Etsy, Inc.(b)(c) | 7,980 | 572,086 | ||||||
| ||||||||
109,740,328 | ||||||||
| ||||||||
Building Products–0.48% |
| |||||||
A.O. Smith Corp. | 8,137 | 674,557 | ||||||
| ||||||||
Allegion PLC | 5,733 | 733,079 | ||||||
| ||||||||
Builders FirstSource, Inc.(b) | 8,139 | 1,588,570 | ||||||
| ||||||||
Carrier Global Corp.(c) | 56,151 | 3,120,873 | ||||||
| ||||||||
Johnson Controls International PLC | 45,529 | 2,698,504 | ||||||
| ||||||||
Masco Corp. | 14,689 | 1,127,528 | ||||||
| ||||||||
Trane Technologies PLC | 15,285 | 4,309,911 | ||||||
| ||||||||
14,253,022 | ||||||||
| ||||||||
Cable & Satellite–0.46% |
| |||||||
Charter Communications, Inc., Class A(b) | 6,680 | 1,963,452 | ||||||
| ||||||||
Comcast Corp., Class A | 268,736 | 11,515,338 | ||||||
| ||||||||
13,478,790 | ||||||||
| ||||||||
Cargo Ground Transportation–0.13% |
| |||||||
J.B. Hunt Transport Services, Inc. | 5,375 | 1,108,916 | ||||||
| ||||||||
Old Dominion Freight Line, Inc. | 5,988 | 2,649,570 | ||||||
| ||||||||
3,758,486 | ||||||||
| ||||||||
Casinos & Gaming–0.12% |
| |||||||
Caesars Entertainment, Inc.(b)(c) | 13,912 | 604,755 | ||||||
| ||||||||
Las Vegas Sands Corp. | 24,349 | 1,327,508 | ||||||
| ||||||||
MGM Resorts International(b)(c) | 18,951 | 820,199 | ||||||
| ||||||||
Wynn Resorts Ltd. | 6,611 | 695,477 | ||||||
| ||||||||
3,447,939 | ||||||||
| ||||||||
Commodity Chemicals–0.15% |
| |||||||
Dow, Inc. | 46,939 | 2,622,951 | ||||||
| ||||||||
LyondellBasell Industries N.V., Class A | 17,149 | 1,719,702 | ||||||
| ||||||||
4,342,653 | ||||||||
| ||||||||
Communications Equipment–0.78% |
| |||||||
Arista Networks, Inc.(b) | 16,864 | 4,680,434 | ||||||
| ||||||||
Cisco Systems, Inc. | 271,072 | 13,111,753 | ||||||
| ||||||||
F5, Inc.(b) | 3,938 | 737,272 | ||||||
| ||||||||
Juniper Networks, Inc. | 23,296 | 862,651 | ||||||
| ||||||||
Motorola Solutions, Inc. | 11,107 | 3,669,642 | ||||||
| ||||||||
23,061,752 | ||||||||
| ||||||||
Computer & Electronics Retail–0.03% |
| |||||||
Best Buy Co., Inc.(c) | 12,679 | 1,025,478 | ||||||
| ||||||||
Construction & Engineering–0.08% |
| |||||||
Quanta Services, Inc. | 9,583 | 2,314,390 | ||||||
| ||||||||
Construction Machinery & Heavy Transportation Equipment– 0.66% |
| |||||||
Caterpillar, Inc. | 34,140 | 11,401,394 | ||||||
| ||||||||
Cummins, Inc.(c) | 9,486 | 2,548,035 | ||||||
| ||||||||
PACCAR, Inc. | 35,005 | 3,881,704 | ||||||
| ||||||||
Wabtec Corp. | 11,817 | 1,669,624 | ||||||
| ||||||||
19,500,757 | ||||||||
| ||||||||
Construction Materials–0.16% |
| |||||||
Martin Marietta Materials, Inc. | 4,136 | 2,389,409 | ||||||
| ||||||||
Vulcan Materials Co. | 8,764 | 2,329,909 | ||||||
| ||||||||
4,719,318 | ||||||||
|
Shares | Value | |||||||
| ||||||||
Consumer Electronics–0.05% |
| |||||||
Garmin Ltd. | 10,096 | $ | 1,386,686 | |||||
| ||||||||
Consumer Finance–0.51% |
| |||||||
American Express Co. | 38,528 | 8,453,814 | ||||||
| ||||||||
Capital One Financial Corp. | 25,487 | 3,507,266 | ||||||
| ||||||||
Discover Financial Services | 16,494 | 1,990,826 | ||||||
| ||||||||
Synchrony Financial | 27,311 | 1,127,944 | ||||||
| ||||||||
15,079,850 | ||||||||
| ||||||||
Consumer Staples Merchandise Retail–1.62% |
| |||||||
Costco Wholesale Corp. | 29,629 | 22,040,717 | ||||||
| ||||||||
Dollar General Corp. | 14,477 | 2,103,653 | ||||||
| ||||||||
Dollar Tree, Inc.(b)(c) | 13,987 | 2,051,613 | ||||||
| ||||||||
Target Corp. | 30,892 | 4,724,005 | ||||||
| ||||||||
Walmart, Inc. | 286,401 | 16,785,962 | ||||||
| ||||||||
47,705,950 | ||||||||
| ||||||||
Copper–0.12% |
| |||||||
Freeport-McMoRan, Inc. | 95,965 | 3,628,437 | ||||||
| ||||||||
Data Center REITs–0.29% |
| |||||||
Digital Realty Trust, Inc.(c) | 20,268 | 2,975,545 | ||||||
| ||||||||
Equinix, Inc. | 6,283 | 5,584,456 | ||||||
| ||||||||
8,560,001 | ||||||||
| ||||||||
Data Processing & Outsourced Services–0.05% |
| |||||||
Broadridge Financial Solutions, Inc. | 7,873 | 1,602,785 | ||||||
| ||||||||
Distillers & Vintners–0.12% |
| |||||||
Brown-Forman Corp., Class B(c) | 11,949 | 719,688 | ||||||
| ||||||||
Constellation Brands, Inc., Class A | 10,816 | 2,687,993 | ||||||
| ||||||||
3,407,681 | ||||||||
| ||||||||
Distributors–0.11% |
| |||||||
Genuine Parts Co. | 9,247 | 1,380,207 | ||||||
| ||||||||
LKQ Corp. | 17,474 | 913,715 | ||||||
| ||||||||
Pool Corp.(c) | 2,522 | 1,004,059 | ||||||
| ||||||||
3,297,981 | ||||||||
| ||||||||
Diversified Banks–2.84% |
| |||||||
Bank of America Corp. | 460,757 | 15,905,332 | ||||||
| ||||||||
Citigroup, Inc. | 128,081 | 7,107,215 | ||||||
| ||||||||
Comerica, Inc. | 8,606 | 424,964 | ||||||
| ||||||||
Fifth Third Bancorp | 45,575 | 1,565,046 | ||||||
| ||||||||
JPMorgan Chase & Co. | 193,473 | 35,997,586 | ||||||
| ||||||||
KeyCorp | 61,123 | 872,225 | ||||||
| ||||||||
PNC Financial Services Group, Inc. (The) | 26,658 | 3,924,058 | ||||||
| ||||||||
U.S. Bancorp | 104,198 | 4,372,148 | ||||||
| ||||||||
Wells Fargo & Co. | 243,038 | 13,510,482 | ||||||
| ||||||||
83,679,056 | ||||||||
| ||||||||
Diversified Support Services–0.23% |
| |||||||
Cintas Corp. | 5,794 | 3,642,167 | ||||||
| ||||||||
Copart, Inc.(b) | 58,475 | 3,107,946 | ||||||
| ||||||||
6,750,113 | ||||||||
| ||||||||
Drug Retail–0.03% |
| |||||||
Walgreens Boots Alliance, Inc. | 46,794 | 994,840 | ||||||
| ||||||||
Electric Utilities–1.37% |
| |||||||
Alliant Energy Corp.(c) | 16,832 | 803,728 | ||||||
| ||||||||
American Electric Power Co., Inc. | 35,193 | 2,998,092 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco S&P 500 Index Fund |
Shares | Value | |||||||
| ||||||||
Electric Utilities–(continued) |
| |||||||
Constellation Energy Corp. | 21,374 | $ | 3,600,450 | |||||
| ||||||||
Duke Energy Corp. | 51,578 | 4,736,408 | ||||||
| ||||||||
Edison International | 25,282 | 1,719,682 | ||||||
| ||||||||
Entergy Corp. | 14,152 | 1,437,419 | ||||||
| ||||||||
Evergy, Inc. | 14,847 | 735,520 | ||||||
| ||||||||
Eversource Energy | 23,378 | 1,372,289 | ||||||
| ||||||||
Exelon Corp. | 66,617 | 2,387,553 | ||||||
| ||||||||
FirstEnergy Corp. | 34,743 | 1,271,941 | ||||||
| ||||||||
NextEra Energy, Inc. | 137,305 | 7,577,863 | ||||||
| ||||||||
NRG Energy, Inc. | 15,178 | 839,647 | ||||||
| ||||||||
PG&E Corp.(c) | 142,779 | 2,382,981 | ||||||
| ||||||||
Pinnacle West Capital Corp. | 7,321 | 500,244 | ||||||
| ||||||||
PPL Corp. | 48,620 | 1,282,109 | ||||||
| ||||||||
Southern Co. (The) | 72,987 | 4,908,376 | ||||||
| ||||||||
Xcel Energy, Inc. | 36,929 | 1,945,789 | ||||||
| ||||||||
40,500,091 | ||||||||
| ||||||||
Electrical Components & Equipment–0.63% |
| |||||||
AMETEK, Inc. | 15,446 | 2,783,061 | ||||||
| ||||||||
Eaton Corp. PLC | 26,722 | 7,722,658 | ||||||
| ||||||||
Emerson Electric Co. | 38,152 | 4,076,541 | ||||||
| ||||||||
Generac Holdings, Inc.(b) | 3,971 | 446,777 | ||||||
| ||||||||
Hubbell, Inc. | 3,537 | 1,346,430 | ||||||
| ||||||||
Rockwell Automation, Inc. | 7,564 | 2,156,345 | ||||||
| ||||||||
18,531,812 | ||||||||
| ||||||||
Electronic Components–0.20% |
| |||||||
Amphenol Corp., Class A | 40,040 | 4,373,969 | ||||||
| ||||||||
Corning, Inc. | 51,387 | 1,656,717 | ||||||
| ||||||||
6,030,686 | ||||||||
| ||||||||
Electronic Equipment & Instruments–0.17% |
| |||||||
Keysight Technologies, Inc.(b) | 11,884 | 1,833,701 | ||||||
| ||||||||
Teledyne Technologies, Inc.(b) | 3,112 | 1,329,665 | ||||||
| ||||||||
Trimble, Inc.(b) | 16,217 | 992,318 | ||||||
| ||||||||
Zebra Technologies Corp., Class A(b)(c) | 3,388 | 946,878 | ||||||
| ||||||||
5,102,562 | ||||||||
| ||||||||
Electronic Manufacturing Services–0.14% |
| |||||||
Jabil, Inc. | 8,439 | 1,215,975 | ||||||
| ||||||||
TE Connectivity Ltd. | 20,798 | 2,985,761 | ||||||
| ||||||||
4,201,736 | ||||||||
| ||||||||
Environmental & Facilities Services–0.33% |
| |||||||
Republic Services, Inc. | 13,687 | 2,512,933 | ||||||
| ||||||||
Rollins, Inc. | 18,518 | 816,088 | ||||||
| ||||||||
Veralto Corp. | 14,311 | 1,236,757 | ||||||
| ||||||||
Waste Management, Inc. | 24,529 | 5,044,389 | ||||||
| ||||||||
9,610,167 | ||||||||
| ||||||||
Fertilizers & Agricultural Chemicals–0.16% |
| |||||||
CF Industries Holdings, Inc. | 12,690 | 1,024,337 | ||||||
| ||||||||
Corteva, Inc. | 47,162 | 2,524,110 | ||||||
| ||||||||
FMC Corp.(c) | 7,978 | 449,879 | ||||||
| ||||||||
Mosaic Co. (The) | 21,798 | 679,226 | ||||||
| ||||||||
4,677,552 | ||||||||
| ||||||||
Financial Exchanges & Data–1.06% |
| |||||||
Cboe Global Markets, Inc. | 6,962 | 1,336,704 | ||||||
| ||||||||
CME Group, Inc., Class A | 24,091 | 5,308,452 | ||||||
| ||||||||
FactSet Research Systems, Inc. | 2,542 | 1,175,878 | ||||||
|
Shares | Value | |||||||
| ||||||||
Financial Exchanges & Data–(continued) |
| |||||||
Intercontinental Exchange, Inc. | 38,304 | $ | 5,302,040 | |||||
| ||||||||
MarketAxess Holdings, Inc. | 2,500 | 533,525 | ||||||
| ||||||||
Moody’s Corp. | 10,532 | 3,996,051 | ||||||
| ||||||||
MSCI, Inc. | 5,293 | 2,969,215 | ||||||
| ||||||||
Nasdaq, Inc. | 22,453 | 1,261,859 | ||||||
| ||||||||
S&P Global, Inc. | 21,683 | 9,288,564 | ||||||
| ||||||||
31,172,288 | ||||||||
| ||||||||
Food Distributors–0.09% |
| |||||||
Sysco Corp. | 33,742 | 2,732,090 | ||||||
| ||||||||
Food Retail–0.07% | ||||||||
Kroger Co. (The) | 43,650 | 2,165,476 | ||||||
| ||||||||
Footwear–0.29% | ||||||||
NIKE, Inc., Class B | 81,914 | 8,513,322 | ||||||
| ||||||||
Gas Utilities–0.04% | ||||||||
Atmos Energy Corp. | 9,695 | 1,094,662 | ||||||
| ||||||||
Gold–0.08% | ||||||||
Newmont Corp. | 77,127 | 2,410,219 | ||||||
| ||||||||
Health Care Distributors–0.33% |
| |||||||
Cardinal Health, Inc. | 16,599 | 1,858,756 | ||||||
| ||||||||
Cencora, Inc. | 11,157 | 2,628,589 | ||||||
| ||||||||
Henry Schein, Inc.(b) | 8,654 | 661,772 | ||||||
| ||||||||
McKesson Corp. | 8,905 | 4,643,156 | ||||||
| ||||||||
9,792,273 | ||||||||
| ||||||||
Health Care Equipment–2.38% |
| |||||||
Abbott Laboratories | 116,134 | 13,778,138 | ||||||
| ||||||||
Baxter International, Inc. | 33,951 | 1,389,275 | ||||||
| ||||||||
Becton, Dickinson and Co. | 19,415 | 4,573,203 | ||||||
| ||||||||
Boston Scientific Corp.(b) | 97,989 | 6,487,852 | ||||||
| ||||||||
DexCom, Inc.(b) | 25,857 | 2,975,365 | ||||||
| ||||||||
Edwards Lifesciences Corp.(b) | 40,588 | 3,444,704 | ||||||
| ||||||||
GE HealthCare Technologies, Inc. | 26,201 | 2,391,627 | ||||||
| ||||||||
Hologic, Inc.(b) | 15,997 | 1,180,579 | ||||||
| ||||||||
IDEXX Laboratories, Inc.(b) | 5,561 | 3,198,854 | ||||||
| ||||||||
Insulet Corp.(b) | 4,606 | 755,384 | ||||||
| ||||||||
Intuitive Surgical, Inc.(b) | 23,561 | 9,085,122 | ||||||
| ||||||||
Medtronic PLC | 89,042 | 7,422,541 | ||||||
| ||||||||
ResMed, Inc. | 9,702 | 1,685,431 | ||||||
| ||||||||
STERIS PLC | 6,517 | 1,517,874 | ||||||
| ||||||||
Stryker Corp. | 22,627 | 7,898,407 | ||||||
| ||||||||
Teleflex, Inc. | 3,037 | 676,613 | ||||||
| ||||||||
Zimmer Biomet Holdings, Inc. | 13,986 | 1,739,299 | ||||||
| ||||||||
70,200,268 | ||||||||
| ||||||||
Health Care Facilities–0.16% |
| |||||||
HCA Healthcare, Inc. | 13,172 | 4,105,713 | ||||||
| ||||||||
Universal Health Services, Inc., Class B | 4,202 | 701,986 | ||||||
| ||||||||
4,807,699 | ||||||||
| ||||||||
Health Care REITs–0.17% | ||||||||
Healthpeak Properties, Inc. | 35,361 | 592,297 | ||||||
| ||||||||
Ventas, Inc. | 26,278 | 1,111,297 | ||||||
| ||||||||
Welltower, Inc. | 37,039 | 3,413,514 | ||||||
| ||||||||
5,117,108 | ||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco S&P 500 Index Fund |
Shares | Value | |||||||
| ||||||||
Health Care Services–0.53% | ||||||||
Cigna Group (The) | 19,583 | $ | 6,582,630 | |||||
| ||||||||
CVS Health Corp. | 85,955 | 6,392,473 | ||||||
| ||||||||
DaVita, Inc.(b) | 3,510 | 445,665 | ||||||
| ||||||||
Laboratory Corp. of America Holdings | 5,786 | 1,248,792 | ||||||
| ||||||||
Quest Diagnostics, Inc. | 7,416 | 926,184 | ||||||
| ||||||||
15,595,744 | ||||||||
| ||||||||
Health Care Supplies–0.10% |
| |||||||
Align Technology, Inc.(b) | 4,698 | 1,420,769 | ||||||
| ||||||||
Cooper Cos., Inc. (The) | 13,068 | 1,223,165 | ||||||
| ||||||||
DENTSPLY SIRONA, Inc. | 13,549 | 442,781 | ||||||
| ||||||||
3,086,715 | ||||||||
| ||||||||
Home Furnishings–0.01% |
| |||||||
Mohawk Industries, Inc.(b) | 3,384 | 401,410 | ||||||
| ||||||||
Home Improvement Retail–1.18% |
| |||||||
Home Depot, Inc. (The) | 66,927 | 25,473,085 | ||||||
| ||||||||
Lowe’s Cos., Inc. | 38,622 | 9,295,157 | ||||||
| ||||||||
34,768,242 | ||||||||
| ||||||||
Homebuilding–0.30% |
| |||||||
D.R. Horton, Inc. | 20,031 | 2,993,432 | ||||||
| ||||||||
Lennar Corp., Class A | 16,741 | 2,653,616 | ||||||
| ||||||||
NVR, Inc.(b) | 214 | 1,631,872 | ||||||
| ||||||||
PulteGroup, Inc. | 14,552 | 1,577,146 | ||||||
| ||||||||
8,856,066 | ||||||||
| ||||||||
Hotel & Resort REITs–0.03% |
| |||||||
Host Hotels & Resorts, Inc.(c) | 46,473 | 963,850 | ||||||
| ||||||||
Hotels, Resorts & Cruise Lines–0.85% |
| |||||||
Airbnb, Inc., Class A(b) | 29,094 | 4,581,432 | ||||||
| ||||||||
Booking Holdings, Inc.(b) | 2,335 | 8,099,718 | ||||||
| ||||||||
Carnival Corp.(b) | 66,454 | 1,053,961 | ||||||
| ||||||||
Expedia Group, Inc.(b) | 8,794 | 1,203,195 | ||||||
| ||||||||
Hilton Worldwide Holdings, Inc. | 17,125 | 3,498,980 | ||||||
| ||||||||
Marriott International, Inc., Class A(c) | 16,510 | 4,125,354 | ||||||
| ||||||||
Norwegian Cruise Line Holdings Ltd.(b)(c) | 27,421 | 531,693 | ||||||
| ||||||||
Royal Caribbean Cruises Ltd.(b) | 15,549 | 1,917,969 | ||||||
| ||||||||
25,012,302 | ||||||||
| ||||||||
Household Appliances–0.01% |
| |||||||
Whirlpool Corp. | 3,550 | 381,234 | ||||||
| ||||||||
Household Products–1.21% |
| |||||||
Church & Dwight Co., Inc.(c) | 16,589 | 1,660,891 | ||||||
| ||||||||
Clorox Co. (The) | 8,298 | 1,272,166 | ||||||
| ||||||||
Colgate-Palmolive Co. | 55,102 | 4,767,425 | ||||||
| ||||||||
Kimberly-Clark Corp. | 22,616 | 2,740,381 | ||||||
| ||||||||
Procter & Gamble Co. (The) | 157,728 | 25,069,288 | ||||||
| ||||||||
35,510,151 | ||||||||
| ||||||||
Human Resource & Employment Services–0.39% |
| |||||||
Automatic Data Processing, Inc. | 27,525 | 6,912,353 | ||||||
| ||||||||
Dayforce, Inc.(b)(c) | 10,288 | 717,691 | ||||||
| ||||||||
Paychex, Inc. | 21,515 | 2,638,169 | ||||||
| ||||||||
Paycom Software, Inc. | 3,217 | 586,749 | ||||||
| ||||||||
Robert Half, Inc. | 6,902 | 554,921 | ||||||
| ||||||||
11,409,883 | ||||||||
|
Shares | Value | |||||||
| ||||||||
Independent Power Producers & Energy Traders–0.02% |
| |||||||
AES Corp. (The) | 44,168 | $ | 671,354 | |||||
| ||||||||
Industrial Conglomerates–0.80% |
| |||||||
3M Co. | 36,962 | 3,404,939 | ||||||
| ||||||||
General Electric Co. | 72,837 | 11,427,397 | ||||||
| ||||||||
Honeywell International, Inc. | 44,119 | 8,767,769 | ||||||
| ||||||||
23,600,105 | ||||||||
| ||||||||
Industrial Gases–0.61% |
| |||||||
Air Products and Chemicals, Inc. | 14,867 | 3,479,473 | ||||||
| ||||||||
Linde PLC | 32,450 | 14,564,209 | ||||||
| ||||||||
18,043,682 | ||||||||
| ||||||||
Industrial Machinery & Supplies & Components–0.84% |
| |||||||
Dover Corp. | 9,227 | 1,525,961 | ||||||
| ||||||||
Fortive Corp. | 23,180 | 1,973,313 | ||||||
| ||||||||
IDEX Corp. | 4,988 | 1,176,669 | ||||||
| ||||||||
Illinois Tool Works, Inc. | 18,324 | 4,803,637 | ||||||
| ||||||||
Ingersoll Rand, Inc. | 27,090 | 2,474,130 | ||||||
| ||||||||
Nordson Corp. | 3,573 | 949,167 | ||||||
| ||||||||
Otis Worldwide Corp. | 27,389 | 2,610,172 | ||||||
| ||||||||
Parker-Hannifin Corp. | 8,598 | 4,603,799 | ||||||
| ||||||||
Pentair PLC | 10,783 | 838,810 | ||||||
| ||||||||
Snap-on, Inc. | 3,456 | 952,681 | ||||||
| ||||||||
Stanley Black & Decker, Inc. | 10,112 | 902,900 | ||||||
| ||||||||
Xylem, Inc. | 15,901 | 2,020,222 | ||||||
| ||||||||
24,831,461 | ||||||||
| ||||||||
Industrial REITs–0.28% |
| |||||||
Prologis, Inc. | 61,834 | 8,240,617 | ||||||
| ||||||||
Insurance Brokers–0.60% | ||||||||
Aon PLC, Class A | 13,399 | 4,233,950 | ||||||
| ||||||||
Arthur J. Gallagher & Co. | 14,449 | 3,524,545 | ||||||
| ||||||||
Brown & Brown, Inc. | 15,581 | 1,312,076 | ||||||
| ||||||||
Marsh & McLennan Cos., Inc. | 32,998 | 6,674,505 | ||||||
| ||||||||
Willis Towers Watson PLC | 6,914 | 1,884,826 | ||||||
| ||||||||
17,629,902 | ||||||||
| ||||||||
Integrated Oil & Gas–1.65% |
| |||||||
Chevron Corp. | 117,489 | 17,859,503 | ||||||
| ||||||||
Exxon Mobil Corp.(f) | 268,069 | 28,018,572 | ||||||
| ||||||||
Occidental Petroleum Corp.(c) | 44,187 | 2,678,174 | ||||||
| ||||||||
48,556,249 | ||||||||
| ||||||||
Integrated Telecommunication Services–0.66% |
| |||||||
AT&T, Inc. | 478,496 | 8,100,937 | ||||||
| ||||||||
Verizon Communications, Inc. | 281,348 | 11,259,547 | ||||||
| ||||||||
19,360,484 | ||||||||
| ||||||||
Interactive Home Entertainment–0.13% |
| |||||||
Electronic Arts, Inc. | 16,380 | 2,284,682 | ||||||
| ||||||||
Take-Two Interactive Software, Inc.(b) | 10,432 | 1,532,774 | ||||||
| ||||||||
3,817,456 | ||||||||
| ||||||||
Interactive Media & Services–5.94% |
| |||||||
Alphabet, Inc., Class A(b) | 396,046 | 54,836,529 | ||||||
| ||||||||
Alphabet, Inc., Class C(b) | 333,324 | 46,592,029 | ||||||
| ||||||||
Match Group, Inc.(b)(c) | 18,162 | 654,559 | ||||||
| ||||||||
Meta Platforms, Inc., Class A | 148,541 | 72,804,400 | ||||||
| ||||||||
174,887,517 | ||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco S&P 500 Index Fund |
Shares | Value | |||||||
| ||||||||
Internet Services & Infrastructure–0.08% |
| |||||||
Akamai Technologies, Inc.(b) | 9,927 | $ | 1,101,103 | |||||
| ||||||||
VeriSign, Inc.(b) | 5,891 | 1,150,453 | ||||||
| ||||||||
2,251,556 | ||||||||
| ||||||||
Investment Banking & Brokerage–0.81% |
| |||||||
Charles Schwab Corp. (The) | 99,595 | 6,650,954 | ||||||
| ||||||||
Goldman Sachs Group, Inc. (The) | 21,824 | 8,490,627 | ||||||
| ||||||||
Morgan Stanley | 84,577 | 7,277,005 | ||||||
| ||||||||
Raymond James Financial, Inc. | 12,576 | 1,513,145 | ||||||
| ||||||||
23,931,731 | ||||||||
| ||||||||
IT Consulting & Other Services–1.13% |
| |||||||
Accenture PLC, Class A | 42,001 | 15,741,135 | ||||||
| ||||||||
Cognizant Technology Solutions Corp., Class A | 33,556 | 2,651,595 | ||||||
| ||||||||
EPAM Systems, Inc.(b) | 3,785 | 1,152,154 | ||||||
| ||||||||
Gartner, Inc.(b) | 5,217 | 2,428,827 | ||||||
| ||||||||
International Business Machines Corp. | 61,108 | 11,306,813 | ||||||
| ||||||||
33,280,524 | ||||||||
| ||||||||
Leisure Products–0.01% |
| |||||||
Hasbro, Inc. | 8,517 | 428,320 | ||||||
| ||||||||
Life & Health Insurance–0.35% |
| |||||||
Aflac, Inc. | 35,352 | 2,854,321 | ||||||
| ||||||||
Globe Life, Inc. | 5,776 | 733,148 | ||||||
| ||||||||
MetLife, Inc. | 41,214 | 2,874,264 | ||||||
| ||||||||
Principal Financial Group, Inc. | 14,535 | 1,175,300 | ||||||
| ||||||||
Prudential Financial, Inc. | 24,159 | 2,633,089 | ||||||
| ||||||||
10,270,122 | ||||||||
| ||||||||
Life Sciences Tools & Services–1.39% |
| |||||||
Agilent Technologies, Inc. | 19,581 | 2,689,646 | ||||||
| ||||||||
Bio-Rad Laboratories, Inc., Class A(b) | 1,340 | 436,679 | ||||||
| ||||||||
Bio-Techne Corp.(c) | 10,432 | 767,482 | ||||||
| ||||||||
Charles River Laboratories International, Inc.(b)(c) | 3,309 | 841,115 | ||||||
| ||||||||
Danaher Corp. | 44,011 | 11,140,945 | ||||||
| ||||||||
Illumina, Inc.(b) | 10,474 | 1,464,579 | ||||||
| ||||||||
IQVIA Holdings, Inc.(b) | 12,255 | 3,028,946 | ||||||
| ||||||||
Mettler-Toledo International, Inc.(b) | 1,451 | 1,809,716 | ||||||
| ||||||||
Revvity, Inc. | 8,110 | 888,775 | ||||||
| ||||||||
Thermo Fisher Scientific, Inc. | 25,857 | 14,743,144 | ||||||
| ||||||||
Waters Corp.(b) | 3,900 | 1,315,938 | ||||||
| ||||||||
West Pharmaceutical Services, | 4,880 | 1,748,797 | ||||||
| ||||||||
40,875,762 | ||||||||
| ||||||||
Managed Health Care–1.55% |
| |||||||
Centene Corp.(b) | 35,750 | 2,803,873 | ||||||
| ||||||||
Elevance Health, Inc. | 15,724 | 7,881,655 | ||||||
| ||||||||
Humana, Inc. | 8,239 | 2,886,286 | ||||||
| ||||||||
Molina Healthcare, Inc.(b) | 3,845 | 1,514,584 | ||||||
| ||||||||
UnitedHealth Group, Inc. | 61,898 | 30,552,853 | ||||||
| ||||||||
45,639,251 | ||||||||
| ||||||||
Metal, Glass & Plastic Containers–0.05% |
| |||||||
Ball Corp. | 20,797 | 1,331,424 | ||||||
| ||||||||
Movies & Entertainment–1.14% |
| |||||||
Live Nation Entertainment, Inc.(b) | 9,359 | 907,636 | ||||||
| ||||||||
Netflix, Inc.(b) | 29,291 | 17,660,129 | ||||||
| ||||||||
Walt Disney Co. (The) | 122,453 | 13,663,306 | ||||||
|
Shares | Value | |||||||
| ||||||||
Movies & Entertainment–(continued) |
| |||||||
Warner Bros. Discovery, Inc.(b) | 146,371 | $ | 1,286,601 | |||||
| ||||||||
33,517,672 | ||||||||
| ||||||||
Multi-Family Residential REITs–0.22% |
| |||||||
AvalonBay Communities, Inc.(c) | 9,367 | 1,658,240 | ||||||
| ||||||||
Camden Property Trust(c) | 6,991 | 660,510 | ||||||
| ||||||||
Equity Residential | 23,125 | 1,392,356 | ||||||
| ||||||||
Essex Property Trust, Inc.(c) | 4,192 | 970,029 | ||||||
| ||||||||
Mid-America Apartment Communities, Inc. | 7,620 | 957,681 | ||||||
| ||||||||
UDR, Inc. | 20,002 | 710,071 | ||||||
| ||||||||
6,348,887 | ||||||||
| ||||||||
Multi-line Insurance–0.14% |
| |||||||
American International Group, Inc. | 46,982 | 3,424,518 | ||||||
| ||||||||
Assurant, Inc. | 3,568 | 647,414 | ||||||
| ||||||||
4,071,932 | ||||||||
| ||||||||
Multi-Sector Holdings–1.69% |
| |||||||
Berkshire Hathaway, Inc., Class B(b) | 121,761 | 49,848,953 | ||||||
| ||||||||
Multi-Utilities–0.58% |
| |||||||
Ameren Corp. | 17,160 | 1,221,620 | ||||||
| ||||||||
CenterPoint Energy, Inc. | 41,221 | 1,133,578 | ||||||
| ||||||||
CMS Energy Corp. | 19,053 | 1,093,071 | ||||||
| ||||||||
Consolidated Edison, Inc. | 22,771 | 1,985,859 | ||||||
| ||||||||
Dominion Energy, Inc. | 56,000 | 2,678,480 | ||||||
| ||||||||
DTE Energy Co. | 13,798 | 1,495,013 | ||||||
| ||||||||
NiSource, Inc. | 26,703 | 695,880 | ||||||
| ||||||||
Public Service Enterprise Group, Inc. | 33,348 | 2,080,915 | ||||||
| ||||||||
Sempra | 42,116 | 2,973,390 | ||||||
| ||||||||
WEC Energy Group, Inc. | 21,110 | 1,656,924 | ||||||
| ||||||||
17,014,730 | ||||||||
| ||||||||
Office REITs–0.07% |
| |||||||
Alexandria Real Estate Equities, | 10,316 | 1,286,714 | ||||||
| ||||||||
Boston Properties, Inc.(c) | 10,083 | 652,572 | ||||||
| ||||||||
1,939,286 | ||||||||
| ||||||||
Oil & Gas Equipment & Services–0.30% |
| |||||||
Baker Hughes Co., Class A | 67,340 | 1,992,590 | ||||||
| ||||||||
Halliburton Co. | 59,899 | 2,100,658 | ||||||
| ||||||||
Schlumberger N.V. | 95,596 | 4,620,155 | ||||||
| ||||||||
8,713,403 | ||||||||
| ||||||||
Oil & Gas Exploration & Production–0.94% |
| |||||||
APA Corp. | 20,358 | 606,465 | ||||||
| ||||||||
ConocoPhillips | 79,464 | 8,942,878 | ||||||
| ||||||||
Coterra Energy, Inc. | 49,468 | 1,275,285 | ||||||
| ||||||||
Devon Energy Corp. | 42,260 | 1,861,976 | ||||||
| ||||||||
Diamondback Energy, Inc. | 11,978 | 2,186,224 | ||||||
| ||||||||
EOG Resources, Inc. | 39,026 | 4,466,916 | ||||||
| ||||||||
EQT Corp. | 27,131 | 1,007,917 | ||||||
| ||||||||
Hess Corp. | 18,500 | 2,696,375 | ||||||
| ||||||||
Marathon Oil Corp. | 40,214 | 975,189 | ||||||
| ||||||||
Pioneer Natural Resources Co. | 15,614 | 3,672,257 | ||||||
| ||||||||
27,691,482 | ||||||||
| ||||||||
Oil & Gas Refining & Marketing–0.40% |
| |||||||
Marathon Petroleum Corp. | 25,410 | 4,300,134 | ||||||
| ||||||||
Phillips 66 | 29,443 | 4,195,922 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco S&P 500 Index Fund |
Shares | Value | |||||||
| ||||||||
Oil & Gas Refining & Marketing–(continued) |
| |||||||
Valero Energy Corp. | 22,784 | $ | 3,223,025 | |||||
| ||||||||
11,719,081 | ||||||||
| ||||||||
Oil & Gas Storage & Transportation–0.32% |
| |||||||
Kinder Morgan, Inc. | 129,415 | 2,250,527 | ||||||
| ||||||||
ONEOK, Inc. | 38,986 | 2,928,628 | ||||||
| ||||||||
Targa Resources Corp. | 14,707 | 1,444,816 | ||||||
| ||||||||
Williams Cos., Inc. (The) | 81,411 | 2,925,911 | ||||||
| ||||||||
9,549,882 | ||||||||
| ||||||||
Other Specialized REITs–0.12% |
| |||||||
Iron Mountain, Inc. | 19,541 | 1,536,704 | ||||||
| ||||||||
VICI Properties, Inc.(c) | 68,237 | 2,042,334 | ||||||
| ||||||||
3,579,038 | ||||||||
| ||||||||
Other Specialty Retail–0.15% |
| |||||||
Bath & Body Works, Inc. | 15,062 | 688,334 | ||||||
| ||||||||
Tractor Supply Co.(c) | 7,235 | 1,840,005 | ||||||
| ||||||||
Ulta Beauty, Inc.(b) | 3,270 | 1,793,791 | ||||||
| ||||||||
4,322,130 | ||||||||
| ||||||||
Packaged Foods & Meats–0.68% |
| |||||||
Campbell Soup Co.(c) | 12,726 | 542,637 | ||||||
| ||||||||
Conagra Brands, Inc. | 31,527 | 885,278 | ||||||
| ||||||||
General Mills, Inc. | 38,901 | 2,496,666 | ||||||
| ||||||||
Hershey Co. (The) | 9,886 | 1,857,777 | ||||||
| ||||||||
Hormel Foods Corp. | 18,908 | 667,831 | ||||||
| ||||||||
J.M. Smucker Co. (The) | 7,000 | 841,190 | ||||||
| ||||||||
Kellanova | 17,216 | 949,462 | ||||||
| ||||||||
Kraft Heinz Co. (The) | 53,354 | 1,882,329 | ||||||
| ||||||||
Lamb Weston Holdings, Inc. | 9,522 | 973,244 | ||||||
| ||||||||
McCormick & Co., Inc. | 16,575 | 1,141,354 | ||||||
| ||||||||
Mondelez International, Inc., Class A | 91,042 | 6,652,439 | ||||||
| ||||||||
Tyson Foods, Inc., Class A | 18,649 | 1,011,522 | ||||||
| ||||||||
19,901,729 | ||||||||
| ||||||||
Paper & Plastic Packaging Products & Materials–0.16% |
| |||||||
Amcor PLC | 95,039 | 861,053 | ||||||
| ||||||||
Avery Dennison Corp. | 5,312 | 1,150,207 | ||||||
| ||||||||
International Paper Co. | 23,208 | 820,635 | ||||||
| ||||||||
Packaging Corp. of America | 5,928 | 1,074,094 | ||||||
| ||||||||
WestRock Co. | 16,912 | 765,945 | ||||||
| ||||||||
4,671,934 | ||||||||
| ||||||||
Passenger Airlines–0.16% |
| |||||||
American Airlines Group, Inc.(b)(c) | 41,975 | 658,168 | ||||||
| ||||||||
Delta Air Lines, Inc. | 42,443 | 1,794,066 | ||||||
| ||||||||
Southwest Airlines Co. | 39,320 | 1,347,496 | ||||||
| ||||||||
United Airlines Holdings, Inc.(b) | 21,420 | 974,396 | ||||||
| ||||||||
4,774,126 | ||||||||
| ||||||||
Passenger Ground Transportation–0.37% |
| |||||||
Uber Technologies, Inc.(b) | 137,717 | 10,948,501 | ||||||
| ||||||||
Personal Care Products–0.15% |
| |||||||
Estee Lauder Cos., Inc. (The), Class A | 15,546 | 2,309,825 | ||||||
| ||||||||
Kenvue, Inc. | 115,340 | 2,191,460 | ||||||
| ||||||||
4,501,285 | ||||||||
| ||||||||
Pharmaceuticals–3.82% |
| |||||||
Bristol-Myers Squibb Co. | 136,171 | 6,910,678 | ||||||
| ||||||||
Catalent, Inc.(b)(c) | 11,773 | 675,064 | ||||||
|
Shares | Value | |||||||
| ||||||||
Pharmaceuticals–(continued) |
| |||||||
Eli Lilly and Co. | 53,365 | $ | 40,220,133 | |||||
| ||||||||
Johnson & Johnson | 161,101 | 25,998,479 | ||||||
| ||||||||
Merck & Co., Inc. | 169,583 | 21,562,479 | ||||||
| ||||||||
Pfizer, Inc. | 377,871 | 10,036,254 | ||||||
| ||||||||
Viatris, Inc. | 79,130 | 978,838 | ||||||
| ||||||||
Zoetis, Inc. | 30,725 | 6,093,689 | ||||||
| ||||||||
112,475,614 | ||||||||
| ||||||||
Property & Casualty Insurance–0.94% |
| |||||||
Allstate Corp. (The) | 17,513 | 2,793,674 | ||||||
| ||||||||
Arch Capital Group Ltd.(b) | 24,614 | 2,155,940 | ||||||
| ||||||||
Chubb Ltd. | 27,303 | 6,871,346 | ||||||
| ||||||||
Cincinnati Financial Corp. | 10,350 | 1,179,900 | ||||||
| ||||||||
Hartford Financial Services Group, Inc. (The) | 20,141 | 1,930,313 | ||||||
| ||||||||
Loews Corp. | 12,301 | 924,174 | ||||||
| ||||||||
Progressive Corp. (The) | 39,152 | 7,421,653 | ||||||
| ||||||||
Travelers Cos., Inc. (The) | 15,285 | 3,377,374 | ||||||
| ||||||||
W.R. Berkley Corp. | 13,437 | 1,123,333 | ||||||
| ||||||||
27,777,707 | ||||||||
| ||||||||
Publishing–0.03% |
| |||||||
News Corp., Class A | 25,103 | 674,769 | ||||||
| ||||||||
News Corp., Class B | 7,388 | 206,790 | ||||||
| ||||||||
881,559 | ||||||||
| ||||||||
Rail Transportation–0.65% |
| |||||||
CSX Corp. | 132,247 | 5,017,451 | ||||||
| ||||||||
Norfolk Southern Corp. | 15,134 | 3,834,653 | ||||||
| ||||||||
Union Pacific Corp. | 40,796 | 10,349,537 | ||||||
| ||||||||
19,201,641 | ||||||||
| ||||||||
Real Estate Services–0.14% |
| |||||||
CBRE Group, Inc., Class A(b) | 20,181 | 1,854,432 | ||||||
| ||||||||
CoStar Group, Inc.(b) | 27,329 | 2,378,443 | ||||||
| ||||||||
4,232,875 | ||||||||
| ||||||||
Regional Banks–0.29% |
| |||||||
Citizens Financial Group, Inc. | 31,456 | 987,404 | ||||||
| ||||||||
Huntington Bancshares, Inc. | 94,559 | 1,233,049 | ||||||
| ||||||||
M&T Bank Corp. | 11,106 | 1,551,953 | ||||||
| ||||||||
Regions Financial Corp. | 60,659 | 1,130,077 | ||||||
| ||||||||
Truist Financial Corp. | 89,252 | 3,122,035 | ||||||
| ||||||||
Zions Bancorporation N.A. | 9,865 | 388,977 | ||||||
| ||||||||
8,413,495 | ||||||||
| ||||||||
Reinsurance–0.04% |
| |||||||
Everest Group Ltd. | 2,834 | 1,045,406 | ||||||
| ||||||||
Research & Consulting Services–0.24% |
| |||||||
Equifax, Inc. | 8,127 | 2,223,466 | ||||||
| ||||||||
Jacobs Solutions, Inc. | 8,223 | 1,205,903 | ||||||
| ||||||||
Leidos Holdings, Inc. | 9,070 | 1,159,690 | ||||||
| ||||||||
Verisk Analytics, Inc. | 9,706 | 2,347,881 | ||||||
| ||||||||
6,936,940 | ||||||||
| ||||||||
Restaurants–1.06% |
| |||||||
Chipotle Mexican Grill, Inc.(b) | 1,837 | 4,939,270 | ||||||
| ||||||||
Darden Restaurants, Inc. | 7,936 | 1,354,755 | ||||||
| ||||||||
Domino’s Pizza, Inc.(c) | 2,290 | 1,026,722 | ||||||
| ||||||||
McDonald’s Corp. | 48,542 | 14,187,856 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco S&P 500 Index Fund |
Shares | Value | |||||||
| ||||||||
Restaurants–(continued) |
| |||||||
Starbucks Corp. | 76,465 | $ | 7,256,528 | |||||
| ||||||||
Yum! Brands, Inc. | 18,759 | 2,596,621 | ||||||
| ||||||||
31,361,752 | ||||||||
| ||||||||
Retail REITs–0.28% |
| |||||||
Federal Realty Investment Trust | 4,845 | 488,618 | ||||||
| ||||||||
Kimco Realty Corp. | 48,050 | 949,468 | ||||||
| ||||||||
Realty Income Corp. | 55,013 | 2,866,727 | ||||||
| ||||||||
Regency Centers Corp. | 10,731 | 664,786 | ||||||
| ||||||||
Simon Property Group, Inc. | 21,833 | 3,234,341 | ||||||
| ||||||||
8,203,940 | ||||||||
| ||||||||
Self-Storage REITs–0.17% |
| |||||||
Extra Space Storage, Inc.(c) | 13,936 | 1,964,558 | ||||||
| ||||||||
Public Storage | 10,591 | 3,006,467 | ||||||
| ||||||||
4,971,025 | ||||||||
| ||||||||
Semiconductor Materials & Equipment–0.95% |
| |||||||
Applied Materials, Inc. | 55,983 | 11,287,292 | ||||||
| ||||||||
Enphase Energy, Inc.(b)(c) | 9,007 | 1,143,979 | ||||||
| ||||||||
KLA Corp. | 9,097 | 6,206,883 | ||||||
| ||||||||
Lam Research Corp. | 8,820 | 8,275,365 | ||||||
| ||||||||
Teradyne, Inc. | 10,174 | 1,053,925 | ||||||
| ||||||||
27,967,444 | ||||||||
| ||||||||
Semiconductors–8.54% |
| |||||||
Advanced Micro Devices, Inc.(b) | 108,125 | 20,817,306 | ||||||
| ||||||||
Analog Devices, Inc. | 33,348 | 6,396,813 | ||||||
| ||||||||
Broadcom, Inc. | 29,375 | 38,201,894 | ||||||
| ||||||||
First Solar, Inc.(b) | 6,977 | 1,073,691 | ||||||
| ||||||||
Intel Corp. | 282,145 | 12,146,342 | ||||||
| ||||||||
Microchip Technology, Inc. | 36,208 | 3,046,541 | ||||||
| ||||||||
Micron Technology, Inc. | 73,483 | 6,658,295 | ||||||
| ||||||||
Monolithic Power Systems, Inc. | 3,160 | 2,275,327 | ||||||
| ||||||||
NVIDIA Corp. | 165,091 | 130,606,792 | ||||||
| ||||||||
NXP Semiconductors N.V. (China) | 17,250 | 4,307,843 | ||||||
| ||||||||
ON Semiconductor Corp.(b) | 28,823 | 2,274,711 | ||||||
| ||||||||
Qorvo, Inc.(b) | 6,475 | 741,711 | ||||||
| ||||||||
QUALCOMM, Inc. | 74,485 | 11,752,988 | ||||||
| ||||||||
Skyworks Solutions, Inc. | 10,409 | 1,092,112 | ||||||
| ||||||||
Texas Instruments, Inc. | 60,779 | 10,170,150 | ||||||
| ||||||||
251,562,516 | ||||||||
| ||||||||
Single-Family Residential REITs–0.04% |
| |||||||
Invitation Homes, Inc.(c) | 37,580 | 1,280,351 | ||||||
| ||||||||
Soft Drinks & Non-alcoholic Beverages–1.21% |
| |||||||
Coca-Cola Co. (The) | 260,400 | 15,629,208 | ||||||
| ||||||||
Keurig Dr Pepper, Inc. | 67,378 | 2,015,276 | ||||||
| ||||||||
Monster Beverage Corp.(b) | 49,436 | 2,921,668 | ||||||
| ||||||||
PepsiCo, Inc. | 92,009 | 15,212,768 | ||||||
| ||||||||
35,778,920 | ||||||||
| ||||||||
Specialty Chemicals–0.59% |
| |||||||
Albemarle Corp. | 7,741 | 1,067,097 | ||||||
| ||||||||
Celanese Corp. | 6,536 | 993,276 | ||||||
| ||||||||
DuPont de Nemours, Inc. | 28,365 | 1,962,574 | ||||||
| ||||||||
Eastman Chemical Co. | 7,663 | 672,351 | ||||||
| ||||||||
Ecolab, Inc. | 16,983 | 3,818,458 | ||||||
| ||||||||
International Flavors & Fragrances, Inc.(c) | 17,084 | 1,289,842 | ||||||
| ||||||||
PPG Industries, Inc. | 15,780 | 2,234,448 | ||||||
|
Shares | Value | |||||||
| ||||||||
Specialty Chemicals–(continued) |
| |||||||
Sherwin-Williams Co. (The) | 15,759 | $ | 5,232,461 | |||||
| ||||||||
17,270,507 | ||||||||
| ||||||||
Steel–0.15% |
| |||||||
Nucor Corp. | 16,452 | 3,163,720 | ||||||
| ||||||||
Steel Dynamics, Inc. | 10,169 | 1,360,815 | ||||||
| ||||||||
4,524,535 | ||||||||
| ||||||||
Systems Software–8.08% |
| |||||||
Fortinet, Inc.(b) | 42,570 | 2,942,013 | ||||||
| ||||||||
Gen Digital, Inc.(c) | 36,629 | 787,157 | ||||||
| ||||||||
Microsoft Corp. | 496,881 | 205,529,857 | ||||||
| ||||||||
Oracle Corp. | 106,329 | 11,874,823 | ||||||
| ||||||||
Palo Alto Networks, Inc.(b)(c) | 20,801 | 6,459,750 | ||||||
| ||||||||
ServiceNow, Inc.(b) | 13,719 | 10,582,013 | ||||||
| ||||||||
238,175,613 | ||||||||
| ||||||||
Technology Distributors–0.07% |
| |||||||
CDW Corp. | 8,836 | 2,175,512 | ||||||
| ||||||||
Technology Hardware, Storage & Peripherals–6.22% |
| |||||||
Apple, Inc. | 977,470 | 176,677,702 | ||||||
| ||||||||
Hewlett Packard Enterprise Co. | 84,347 | 1,284,605 | ||||||
| ||||||||
HP, Inc. | 57,364 | 1,625,122 | ||||||
| ||||||||
NetApp, Inc. | 13,863 | 1,235,471 | ||||||
| ||||||||
Seagate Technology Holdings PLC | 13,019 | 1,211,418 | ||||||
| ||||||||
Western Digital Corp.(b)(c) | 21,387 | 1,271,885 | ||||||
| ||||||||
183,306,203 | ||||||||
| ||||||||
Telecom Tower REITs–0.37% |
| |||||||
American Tower Corp. | 31,197 | 6,203,835 | ||||||
| ||||||||
Crown Castle, Inc. | 29,044 | 3,193,097 | ||||||
| ||||||||
SBA Communications Corp., Class A | 7,220 | 1,510,641 | ||||||
| ||||||||
10,907,573 | ||||||||
| ||||||||
Timber REITs–0.06% |
| |||||||
Weyerhaeuser Co. | 48,853 | 1,679,566 | ||||||
| ||||||||
Tobacco–0.48% |
| |||||||
Altria Group, Inc. | 118,362 | 4,842,190 | ||||||
| ||||||||
Philip Morris International, Inc. | 103,891 | 9,346,034 | ||||||
| ||||||||
14,188,224 | ||||||||
| ||||||||
Trading Companies & Distributors–0.30% |
| |||||||
Fastenal Co. | 38,240 | 2,791,902 | ||||||
| ||||||||
United Rentals, Inc. | 4,536 | 3,144,673 | ||||||
| ||||||||
W.W. Grainger, Inc. | 2,956 | 2,877,548 | ||||||
| ||||||||
8,814,123 | ||||||||
| ||||||||
Transaction & Payment Processing Services–2.51% |
| |||||||
Fidelity National Information Services, Inc. | 39,650 | 2,743,384 | ||||||
| ||||||||
Fiserv, Inc.(b) | 40,166 | 5,995,579 | ||||||
| ||||||||
FLEETCOR Technologies, Inc.(b) | 4,830 | 1,348,874 | ||||||
| ||||||||
Global Payments, Inc. | 17,426 | 2,260,152 | ||||||
| ||||||||
Jack Henry & Associates, Inc. | 4,712 | 818,804 | ||||||
| ||||||||
Mastercard, Inc., Class A | 55,418 | 26,310,250 | ||||||
| ||||||||
PayPal Holdings, Inc.(b) | 72,152 | 4,353,652 | ||||||
| ||||||||
Visa, Inc., Class A(c) | 106,674 | 30,150,339 | ||||||
| ||||||||
73,981,034 | ||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco S&P 500 Index Fund |
Shares | Value | |||||||
| ||||||||
Water Utilities–0.05% |
| |||||||
American Water Works Co., Inc. | 12,843 | $ | 1,522,409 | |||||
| ||||||||
Wireless Telecommunication Services–0.19% |
| |||||||
T-Mobile US, Inc. | 34,053 | 5,560,855 | ||||||
| ||||||||
Total Common Stocks & Other Equity Interests |
| 2,859,394,541 | ||||||
| ||||||||
Money Market Funds–2.87% |
| |||||||
Invesco Government & Agency Portfolio, Institutional Class, 5.24%(d)(g) | 30,242,898 | 30,242,898 | ||||||
| ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 5.41%(d)(g) | 19,670,893 | 19,680,729 | ||||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 5.23%(d)(g) | 34,563,311 | 34,563,311 | ||||||
| ||||||||
Total Money Market Funds (Cost $84,483,776) |
| 84,486,938 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.91% |
| 2,943,881,479 | ||||||
|
Shares | Value | |||||||
| ||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds–2.14% |
| |||||||
Invesco Private Government Fund, 5.29%(d)(g)(h) | 17,660,945 | $ | 17,660,945 | |||||
| ||||||||
Invesco Private Prime Fund, 5.49%(d)(g)(h) 45,391,161 |
| 45,413,856 | ||||||
| ||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $63,078,217) |
| 63,074,801 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES–102.05% |
| 3,006,956,280 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES–(2.05)% |
| (60,358,125 | ) | |||||
| ||||||||
NET ASSETS–100.00% | $ | 2,946,598,155 | ||||||
|
Investment Abbreviations:
REIT – Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at February 29, 2024. |
(d) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 29, 2024. |
Value August 31, 2023 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value February 29, 2024 | Dividend Income | |||||||||||||||||||||||||||||
Invesco Ltd. | $ | 455,471 | $ | 4,924 | $ | - | $ | (13,967 | ) | $ | - | $ | 446,428 | $ | 11,516 | ||||||||||||||||||||
Investments in Affiliated Money Market Funds: | |||||||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | 28,598,847 | 58,871,072 | (57,227,021) | - | - | 30,242,898 | 661,777 | ||||||||||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 18,499,332 | 42,050,766 | (40,876,444 | ) | 769 | 6,306 | 19,680,729 | 436,813 | |||||||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 32,684,397 | 67,281,225 | (65,402,311) | - | - | 34,563,311 | 756,601 | ||||||||||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | |||||||||||||||||||||||||||||||||||
Invesco Private Government Fund | 14,324,601 | 128,288,456 | (124,952,112 | ) | - | - | 17,660,945 | 439,915* | |||||||||||||||||||||||||||
Invesco Private Prime Fund | 36,834,686 | 316,607,200 | (308,044,762 | ) | (3,238 | ) | 19,970 | 45,413,856 | 1,197,304* | ||||||||||||||||||||||||||
Total | $ | 131,397,334 | $ | 613,103,643 | $ | (596,502,650 | ) | $ | (16,436 | ) | $ | 26,276 | $ | 148,008,167 | $ | 3,503,926 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(e) | Restricted security. The value of this security at February 29, 2024 represented less than 1% of the Fund’s Net Assets. |
(f) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1J. |
(g) | The rate shown is the 7-day SEC standardized yield as of February 29, 2024. |
(h) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
Open Futures Contracts | ||||||||||||||||||||
| ||||||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation | |||||||||||||||
| ||||||||||||||||||||
Equity Risk | ||||||||||||||||||||
| ||||||||||||||||||||
E-Mini S&P 500 Index | 344 | March-2024 | $ | 87,784,500 | $ | 4,012,326 | $ | 4,012,326 | ||||||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco S&P 500 Index Fund |
Portfolio Composition
By sector, based on Net Assets
as of February 29, 2024
Information Technology | 28.93% | |||
| ||||
Financials | 12.61 | |||
| ||||
Health Care | 12.15 | |||
| ||||
Consumer Discretionary | 10.32 | |||
| ||||
Communication Services | 8.64 | |||
| ||||
Industrials | 8.47 | |||
| ||||
Consumer Staples | 5.78 | |||
| ||||
Energy | 3.61 | |||
| ||||
Real Estate | 2.24 | |||
| ||||
Materials | 2.23 | |||
| ||||
Utilities | 2.06 | |||
| ||||
Money Market Funds Plus Other Assets Less Liabilities | 2.96 | |||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 | Invesco S&P 500 Index Fund |
Statement of Assets and Liabilities
February 29, 2024
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value | $ | 2,858,948,113 | ||
| ||||
Investments in affiliates, at value | 148,008,167 | |||
| ||||
Other investments: | ||||
Variation margin receivable – futures contracts | 374,702 | |||
| ||||
Cash | 1,833 | |||
| ||||
Receivable for: | ||||
Fund shares sold | 2,305,433 | |||
| ||||
Dividends | 4,327,844 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 71,840 | |||
| ||||
Other assets | 75,116 | |||
| ||||
Total assets | 3,014,113,048 | |||
| ||||
Liabilities: | ||||
Payable for: | ||||
Fund shares reacquired | 3,029,876 | |||
| ||||
Collateral upon return of securities loaned | 63,078,217 | |||
| ||||
Accrued fees to affiliates | 1,192,177 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 1,955 | |||
| ||||
Accrued other operating expenses | 131,418 | |||
| ||||
Trustee deferred compensation and retirement plans | 81,250 | |||
| ||||
Total liabilities | 67,514,893 | |||
| ||||
Net assets applicable to shares outstanding | $ | 2,946,598,155 | ||
|
Net assets consist of: | ||||
Shares of beneficial interest | $ | 1,164,706,544 | ||
| ||||
Distributable earnings | 1,781,891,611 | |||
| ||||
$ | 2,946,598,155 | |||
| ||||
Net Assets: | ||||
Class A | $ | 2,006,619,407 | ||
| ||||
Class C | $ | 367,738,808 | ||
| ||||
Class Y | $ | 519,259,287 | ||
| ||||
Class R6 | $ | 52,980,653 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 37,289,609 | |||
| ||||
Class C | 7,152,782 | |||
| ||||
Class Y | 9,495,866 | |||
| ||||
Class R6 | 967,562 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 53.81 | ||
| ||||
Maximum offering price per share | $ | 56.94 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 51.41 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 54.68 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 54.76 | ||
|
* | At February 29, 2024, securities with an aggregate value of $62,056,536 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 | Invesco S&P 500 Index Fund |
Statement of Operations
For the six months ended February 29, 2024
(Unaudited)
Investment income: |
| |||
Dividends (net of foreign withholding taxes of $6,044) | $ | 20,041,785 | ||
| ||||
Dividends from affiliates (includes net securities lending income of $44,203) | 1,910,910 | |||
| ||||
Total investment income | 21,952,695 | |||
| ||||
Expenses: |
| |||
Advisory fees | 1,486,601 | |||
| ||||
Administrative services fees | 170,825 | |||
| ||||
Custodian fees | 10,727 | |||
| ||||
Distribution fees: |
| |||
Class A | 2,177,180 | |||
| ||||
Class C | 1,671,270 | |||
| ||||
Transfer agent fees – A, C and Y | 1,700,981 | |||
| ||||
Transfer agent fees – R6 | 4,851 | |||
| ||||
Trustees’ and officers’ fees and benefits | 22,376 | |||
| ||||
Registration and filing fees | 60,936 | |||
| ||||
Licensing fees | 58,731 | |||
| ||||
Reports to shareholders | 133,361 | |||
| ||||
Professional services fees | 38,610 | |||
| ||||
Other | 19,283 | |||
| ||||
Total expenses | 7,555,732 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (64,024 | ) | ||
| ||||
Net expenses | 7,491,708 | |||
| ||||
Net investment income | 14,460,987 | |||
| ||||
Realized and unrealized gain (loss) from: |
| |||
Net realized gain from: |
| |||
Unaffiliated investment securities | 679,880 | |||
| ||||
Affiliated investment securities | 26,276 | |||
| ||||
Futures contracts | 6,484,440 | |||
| ||||
7,190,596 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: |
| |||
Unaffiliated investment securities | 324,857,981 | |||
| ||||
Affiliated investment securities | (16,436 | ) | ||
| ||||
Futures contracts | 2,256,488 | |||
| ||||
327,098,033 | ||||
| ||||
Net realized and unrealized gain | 334,288,629 | |||
| ||||
Net increase in net assets resulting from operations | $ | 348,749,616 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 | Invesco S&P 500 Index Fund |
Statement of Changes in Net Assets
For the six months ended February 29, 2024 and the year ended August 31, 2023
(Unaudited)
February 29, | August 31, | |||||||
2024 | 2023 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 14,460,987 | $ | 24,067,056 | ||||
| ||||||||
Net realized gain | 7,190,596 | 70,075 | ||||||
| ||||||||
Change in net unrealized appreciation | 327,098,033 | 297,426,228 | ||||||
| ||||||||
Net increase in net assets resulting from operations | 348,749,616 | 321,563,359 | ||||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (18,907,958 | ) | (14,619,410 | ) | ||||
| ||||||||
Class C | (1,387,800 | ) | (2,697,142 | ) | ||||
| ||||||||
Class Y | (5,892,777 | ) | (3,119,500 | ) | ||||
| ||||||||
Class R6 | (346,442 | ) | (201,236 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (26,534,977 | ) | (20,637,288 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | 106,081,982 | 83,378,064 | ||||||
| ||||||||
Class C | (4,734,288 | ) | (39,240,029 | ) | ||||
| ||||||||
Class Y | 12,129,301 | 114,438,275 | ||||||
| ||||||||
Class R6 | 24,342,195 | 4,627,333 | ||||||
| ||||||||
Net increase in net assets resulting from share transactions | 137,819,190 | 163,203,643 | ||||||
| ||||||||
Net increase in net assets | 460,033,829 | 464,129,714 | ||||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 2,486,564,326 | 2,022,434,612 | ||||||
| ||||||||
End of period | $ | 2,946,598,155 | $ | 2,486,564,326 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 | Invesco S&P 500 Index Fund |
(Unaudited)
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 02/29/24 | $47.86 | $0.28 | $ 6.19 | $ 6.47 | $(0.52 | ) | $ – | $(0.52 | ) | $53.81 | 13.61 | % | $2,006,619 | 0.54 | %(d) | 0.54 | %(d) | 1.16 | %(d) | 0 | % | |||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 41.94 | 0.51 | 5.84 | 6.35 | (0.43 | ) | – | (0.43 | ) | 47.86 | 15.33 | 1,681,628 | 0.54 | 0.54 | 1.18 | 2 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 48.42 | 0.44 | (5.97 | ) | (5.53 | ) | (0.39 | ) | (0.56 | ) | (0.95 | ) | 41.94 | (11.70 | ) | 1,392,433 | 0.54 | 0.54 | 0.95 | 2 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 37.59 | 0.39 | 10.94 | 11.33 | (0.43 | ) | (0.07 | ) | (0.50 | ) | 48.42 | 30.46 | 1,544,523 | 0.54 | 0.54 | 0.93 | 5 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 31.59 | 0.45 | 6.21 | 6.66 | (0.45 | ) | (0.21 | ) | (0.66 | ) | 37.59 | 21.33 | (e) | 1,147,062 | 0.54 | (e) | 0.54 | (e) | 1.36 | (e) | 2 | |||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 31.63 | 0.45 | 0.20 | 0.65 | (0.42 | ) | (0.27 | ) | (0.69 | ) | 31.59 | 2.36 | (e) | 906,581 | 0.55 | (e) | 0.55 | (e) | 1.47 | (e) | 3 | |||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 45.60 | 0.10 | 5.90 | 6.00 | (0.19 | ) | – | (0.19 | ) | 51.41 | 13.19 | 367,739 | 1.29 | (d) | 1.29 | (d) | 0.41 | (d) | 0 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 40.17 | 0.18 | 5.58 | 5.76 | (0.33 | ) | – | (0.33 | ) | 45.60 | 14.49 | (f) | 330,698 | 1.28 | (f) | 1.28 | (f) | 0.44 | (f) | 2 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 46.48 | 0.09 | (5.75 | ) | (5.66 | ) | (0.09 | ) | (0.56 | ) | (0.65 | ) | 40.17 | (12.38 | ) | 329,140 | 1.29 | 1.29 | 0.20 | 2 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 36.09 | 0.12 | 10.52 | 10.64 | (0.18 | ) | (0.07 | ) | (0.25 | ) | 46.48 | 29.65 | (f) | 400,963 | 1.18 | (f) | 1.18 | (f) | 0.29 | (f) | 5 | |||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 30.36 | 0.19 | 5.96 | 6.15 | (0.21 | ) | (0.21 | ) | (0.42 | ) | 36.09 | 20.41 | 353,371 | 1.30 | 1.30 | 0.60 | 2 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 30.43 | 0.21 | 0.21 | 0.42 | (0.22 | ) | (0.27 | ) | (0.49 | ) | 30.36 | 1.60 | 294,011 | 1.31 | 1.31 | 0.71 | 3 | |||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 48.67 | 0.35 | 6.29 | 6.64 | (0.63 | ) | – | (0.63 | ) | 54.68 | 13.75 | 519,259 | 0.29 | (d) | 0.29 | (d) | 1.41 | (d) | 0 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 42.57 | 0.63 | 5.94 | 6.57 | (0.47 | ) | – | (0.47 | ) | 48.67 | 15.63 | 450,318 | 0.29 | 0.29 | 1.43 | 2 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 49.12 | 0.56 | (6.05 | ) | (5.49 | ) | (0.50 | ) | (0.56 | ) | (1.06 | ) | 42.57 | (11.48 | ) | 284,424 | 0.29 | 0.29 | 1.20 | 2 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 38.11 | 0.50 | 11.10 | 11.60 | (0.52 | ) | (0.07 | ) | (0.59 | ) | 49.12 | 30.80 | 286,102 | 0.29 | 0.29 | 1.18 | 5 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 32.01 | 0.53 | 6.30 | 6.83 | (0.52 | ) | (0.21 | ) | (0.73 | ) | 38.11 | 21.62 | 203,430 | 0.30 | 0.30 | 1.60 | 2 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 32.04 | 0.53 | 0.20 | 0.73 | (0.49 | ) | (0.27 | ) | (0.76 | ) | 32.01 | 2.62 | 181,204 | 0.31 | 0.31 | 1.71 | 3 | |||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 48.75 | 0.38 | 6.30 | 6.68 | (0.67 | ) | – | (0.67 | ) | 54.76 | 13.82 | 52,981 | 0.19 | (d) | 0.19 | (d) | 1.51 | (d) | 0 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 42.61 | 0.67 | 5.95 | 6.62 | (0.48 | ) | – | (0.48 | ) | 48.75 | 15.74 | 23,920 | 0.20 | 0.20 | 1.52 | 2 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 49.15 | 0.60 | (6.05 | ) | (5.45 | ) | (0.53 | ) | (0.56 | ) | (1.09 | ) | 42.61 | (11.40 | ) | 16,438 | 0.20 | 0.20 | 1.29 | 2 | ||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 38.13 | 0.53 | 11.09 | 11.62 | (0.53 | ) | (0.07 | ) | (0.60 | ) | 49.15 | 30.86 | 12,765 | 0.24 | 0.24 | 1.23 | 5 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 32.02 | 0.55 | 6.31 | 6.86 | (0.54 | ) | (0.21 | ) | (0.75 | ) | 38.13 | 21.70 | 8,020 | 0.24 | 0.24 | 1.66 | 2 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 32.05 | 0.54 | 0.20 | 0.74 | (0.50 | ) | (0.27 | ) | (0.77 | ) | 32.02 | 2.65 | 5,646 | 0.26 | 0.26 | 1.76 | 3 |
(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) | Annualized. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.24% for the years ended August 31, 2020 and 2019, respectively. |
(f) | The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.99% and 0.89% for the years ended August 31, 2023 and 2021, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 | Invesco S&P 500 Index Fund |
February 29, 2024
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco S&P 500 Index Fund (the “Fund”) is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company 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 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 Y and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices 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, and their value may be adjusted accordingly. 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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). 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 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.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
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 mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally 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.
17 | Invesco S&P 500 Index Fund |
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
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 an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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. 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
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 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 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. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of |
18 | Invesco S&P 500 Index Fund |
compensation to counterparties, are included in Dividends 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. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 29, 2024, the Fund paid the Adviser $3,036 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliates on the Statement of Operations.
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 instrument or asset. 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. | 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. |
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’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 the Adviser. 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 | 0.120% | |||
| ||||
Over $2 billion | 0.100% | |||
|
For the six months ended February 29, 2024, the effective advisory fee rate incurred by the Fund was 0.12%.
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 agreed, for an indefinite period, 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 Y and Class R6 shares to 2.00%, 2.75%, 1.75% and 1.75%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least June 30, 2025, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the six months ended February 29, 2024, the Adviser waived advisory fees of $37,638.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
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 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class Y 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, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares and up to a maximum annual rate of 1.00% of the average daily net assets of Class C shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 29, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
19 | Invesco S&P 500 Index Fund |
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 29, 2024, IDI advised the Fund that IDI retained $215,706 in front-end sales commissions from the sale of Class A shares and $508 and $8,113 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the six months ended February 29, 2024, the Fund incurred $4,963 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. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of February 29, 2024. 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 | $ | 2,859,394,541 | $ | – | $– | $ | 2,859,394,541 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Money Market Funds | 84,486,938 | 63,074,801 | – | 147,561,739 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Total Investments in Securities | 2,943,881,479 | 63,074,801 | – | 3,006,956,280 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Other Investments - Assets* | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Futures Contracts | 4,012,326 | – | – | 4,012,326 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Total Investments | $ | 2,947,893,805 | $ | 63,074,801 | $– | $ | 3,010,968,606 | |||||||||||||||||||||
|
* | Unrealized appreciation. |
NOTE 4–Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
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 29, 2024:
Value | ||||
Equity | ||||
Derivative Assets | Risk | |||
| ||||
Unrealized appreciation on futures contracts –Exchange-Traded(a) | $ | 4,012,326 | ||
| ||||
Derivatives not subject to master netting agreements | (4,012,326 | ) | ||
| ||||
Total Derivative Assets subject to master netting agreements | $ | – | ||
|
(a) | The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities. |
Effect of Derivative Investments for the six months ended February 29, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain on | ||||
Statement of Operations | ||||
Equity | ||||
Risk | ||||
| ||||
Realized Gain: | ||||
Futures contracts | $6,484,440 | |||
|
20 | Invesco S&P 500 Index Fund |
Location of Gain on | ||||
Statement of Operations | ||||
Equity | ||||
Risk | ||||
| ||||
Change in Net Unrealized Appreciation: | ||||
Futures contracts | $2,256,488 | |||
| ||||
Total | $8,740,928 | |||
|
The table below summarizes the average notional value of derivatives held during the period.
Futures | ||||
Contracts | ||||
| ||||
Average notional value | $ | 71,920,894 | ||
|
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 29, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $26,386.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 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 fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2023, as follows:
Capital Loss Carryforward* | ||||||||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||||||||
Not subject to expiration | $ | 2,543,597 | $ | 592,880 | $3,136,477 |
* | Capital loss carryforward 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. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 29, 2024 was $141,803,906 and $10,562,310, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
Aggregate unrealized appreciation of investments | $ | 1,813,250,035 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (39,887,858 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 1,773,362,177 | ||
|
Cost of investments for tax purposes is $1,237,606,429.
21 | Invesco S&P 500 Index Fund |
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Six months ended February 29, 2024(a) | Year ended August 31, 2023 | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Sold: | ||||||||||||||||||||||||||||
Class A | 4,017,863 | $ | 197,259,190 | 4,837,964 | $ | 209,631,036 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class C | 884,943 | 41,363,486 | 1,178,645 | 48,451,033 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class Y | 1,472,854 | 73,179,374 | 4,620,383 | 203,223,167 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R6 | 527,655 | 26,885,772 | 207,835 | 9,135,762 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||||||||||||||
Class A | 335,327 | 16,679,179 | 316,821 | 12,853,339 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class C | 26,708 | 1,271,014 | 62,346 | 2,422,774 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class Y | 97,460 | 4,923,691 | 59,929 | 2,467,868 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R6 | 6,506 | 328,997 | 4,666 | 192,374 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||||||||||||||
Class A | 417,731 | 20,538,744 | 972,593 | 42,215,051 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class C | (438,020 | ) | (20,538,744 | ) | (1,017,674 | ) | (42,215,051 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Reacquired: | ||||||||||||||||||||||||||||
Class A | (2,617,269 | ) | (128,395,131 | ) | (4,193,571 | ) | (181,321,362 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class C | (572,433 | ) | (26,830,044 | ) | (1,164,496 | ) | (47,898,785 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class Y | (1,327,175 | ) | (65,973,764 | ) | (2,109,204 | ) | (91,252,760 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class R6 | (57,286 | ) | (2,872,574 | ) | (107,591 | ) | (4,700,803 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Net increase in share activity | 2,774,864 | $ | 137,819,190 | 3,668,646 | $ | 163,203,643 | ||||||||||||||||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 49% 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. |
22 | 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, 2023 through February 29, 2024.
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 (09/01/23) | Ending Account Value (02/29/24)1 | Expenses Paid During Period2 | Ending Account Value (02/29/24) | Expenses Paid During Period2 | Annualized Expense Ratio | |||||||
Class A | $1,000.00 | $1,136.10 | $2.87 | $1,022.18 | $2.72 | 0.54% | ||||||
Class C | 1,000.00 | 1,131.90 | 6.84 | 1,018.45 | 6.47 | 1.29 | ||||||
Class Y | 1,000.00 | 1,137.50 | 1.54 | 1,023.42 | 1.46 | 0.29 | ||||||
Class R6 | 1,000.00 | 1,138.20 | 1.01 | 1,023.92 | 0.96 | 0.19 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2023 through February 29, 2024, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
23 | Invesco S&P 500 Index Fund |
A Special Joint Meeting (“Meeting”) of Shareholders of AIM Counselor Series Trust (Invesco Counselor Series Trust), a Delaware statutory trust (“Trust”), was held on January 16, 2024. The Meeting was held for the following purpose:
(1) | Elect 14 trustees to the Board of Trustees of the Trust, each of whom will serve until his or her successor is duly elected and qualified. |
The results of the voting on the above matter were as follows:
Matter | Votes For | Votes Against/Withheld | ||||||||||||
| ||||||||||||||
(1)* | Beth Ann Brown | 3,109,848,785.61 | 65,706,470.15 | |||||||||||
Carol Deckbar | 3,109,186,378.07 | 66,368,877.70 | ||||||||||||
Cynthia Hostetler | 3,108,148,647.37 | 67,406,608.40 | ||||||||||||
Dr. Eli Jones | 3,106,962,123.35 | 68,593,132.42 | ||||||||||||
Elizabeth Krentzman | 3,109,153,762.02 | 66,401,493.75 | ||||||||||||
Jeffrey H. Kupor | 3,109,094,174.85 | 66,461,080.92 | ||||||||||||
Anthony J. LaCava, Jr. | 3,107,453,603.09 | 68,101,652.67 | ||||||||||||
James Liddy | 3,108,418,832.17 | 67,136,423.60 | ||||||||||||
Dr. Prema Mathai-Davis | 3,100,922,564.57 | 74,632,691.20 | ||||||||||||
Joel W. Motley | 3,104,496,522.60 | 71,058,733.17 | ||||||||||||
Teresa M. Ressel | 3,109,248,693.76 | 66,306,562.01 | ||||||||||||
Douglas Sharp | 3,108,681,578.09 | 66,873,677.67 | ||||||||||||
Robert C. Troccoli | 3,104,038,320.81 | 71,516,934.96 | ||||||||||||
Daniel S. Vandivort | 3,106,373,978.14 | 69,181,277.62 |
* Proposal 1 required approval by a combined vote of all the portfolios of AIM Counselor Series Trust (Invesco Counselor Series Trust).
24 | Invesco S&P 500 Index Fund |
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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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, 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/corporate/about-us/esg. 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. This 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 number(s): 811-09913 and 333-36074 | Invesco Distributors, Inc. | MS-SPI-SAR-1 |
Semiannual Report to Shareholders | February 29, 2024 |
Invesco Senior Floating Rate Fund
Nasdaq:
A: OOSAX ∎ C: OOSCX ∎ R: OOSNX ∎ Y: OOSYX ∎ R5: SFRRX ∎ R6: OOSIX
2 | Fund Performance | |
4 | Schedule of Investments | |
23 | Financial Statements | |
26 | Financial Highlights | |
27 | Notes to Financial Statements | |
36 | Fund Expenses | |
T-37 |
Beginning in July 2024, amendments adopted by the Securities and Exchange Commission will substantially impact the design, content, and delivery of shareholder reports. These newly designed shareholder reports will highlight key fund information in a clear and concise format and must be mailed to each shareholder that has not elected to receive the reports electronically. Other information, including financial statements, will no longer be included in the shareholder report but will be available at invesco.com/reports, delivered upon request, and filed on a semi-annual basis on Form N-CSR.
If you would like to receive shareholder reports and other communications electronically instead of by mail, you may make that request 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. If you do not make this request or enroll in e-delivery, you will receive future shareholder reports and other communications by mail.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is 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, 8/31/23 to 2/29/24, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 5.21 | % | ||
Class C Shares | 4.82 | |||
Class R Shares | 5.08 | |||
Class Y Shares | 5.34 | |||
Class R5 Shares | 5.36 | |||
Class R6 Shares | 5.39 | |||
Custom Invesco Senior Floating Rate Index▼ | 5.45 | |||
JP Morgan Leveraged Loan Index∎* | 5.45 | |||
Bloomberg U.S. Aggregate Bond Index◆* | 2.35 | |||
Source(s): ▼Invesco, Bloomberg LP; ∎Bloomberg LP; ◆RIMES Technologies Corp. |
| |||
*Effective December 15, 2023, the Fund changed its broad-based securities market benchmark from the JP Morgan Leveraged Loan Index to the Bloomberg U.S. Aggregate Bond Index to reflect that the Bloomberg U.S. Aggregate Bond Index can be considered more broadly representative of the overall applicable securities market. |
| |||
The Custom Invesco Senior Floating Rate Index is composed of the Credit Suisse Leveraged Loan Index through September 30, 2014, and the JP Morgan Leveraged Loan Index from October 1, 2014 to present. The Credit Suisse Leveraged Loan Index represents tradable, senior-secured, US-dollar-denominated, noninvestment-grade loans. |
| |||
The JP Morgan Leveraged Loan Index tracks the performance of US dollar-denominated senior floating rate bank loans. |
| |||
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market. |
| |||
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 |
|
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
2 | Invesco Senior Floating Rate Fund |
Average Annual Total Returns |
| |||
As of 2/29/24, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (9/8/99) | 4.24 | % | ||
10 Years | 2.81 | |||
5 Years | 2.24 | |||
1 Year | 7.07 | |||
Class C Shares | ||||
Inception (9/8/99) | 4.21 | % | ||
10 Years | 2.53 | |||
5 Years | 2.13 | |||
1 Year | 8.65 | |||
Class R Shares | ||||
Inception (10/26/12) | 3.21 | % | ||
10 Years | 2.87 | |||
5 Years | 2.64 | |||
1 Year | 10.20 | |||
Class Y Shares | ||||
Inception (11/28/05) | 4.21 | % | ||
10 Years | 3.39 | |||
5 Years | 3.18 | |||
1 Year | 10.75 | |||
Class R5 Shares | ||||
10 Years | 3.29 | % | ||
5 Years | 3.22 | |||
1 Year | 10.80 | |||
Class R6 Shares | ||||
Inception (10/26/12) | 3.83 | % | ||
10 Years | 3.48 | |||
5 Years | 3.27 | |||
1 Year | 10.84 |
Effective May 24, 2019, Class A, Class C, Class R, Class Y and Class I shares of the Oppenheimer Senior Floating Rate Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y and Class R6 shares, respectively, of the Invesco Oppenheimer Senior Floating Rate Fund. The Fund was subsequently renamed the Invesco Senior Floating Rate Fund (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class A, Class C, Class R, Class Y and Class R6 shares are those for Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of the predecessor fund’s Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
Class A share performance reflects the maximum 3.25% 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 a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 | Invesco Senior Floating Rate Fund |
February 29, 2024
(Unaudited)
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||
Variable Rate Senior Loan Interests–82.21%(b)(c) |
| |||||||||||||
Aerospace & Defense–3.77% | ||||||||||||||
ADB Safegate (ADBAS/CEP IV) (Luxembourg), Term Loan B (3 mo. EURIBOR + 4.75%) | 8.71% | 10/05/2026 | EUR | 14,104 | $ 14,614,340 | |||||||||
Barnes Group, Inc., Term Loan (1 mo. Term SOFR + 3.00%) | 8.43% | 09/03/2030 | $ | 1,530 | 1,534,423 | |||||||||
Brown Group Holding LLC (Signature Aviation US Holdings, Inc.) | ||||||||||||||
Incremental Term Loan B-2 (1 mo. Term SOFR + 3.00%) | 9.08% | 07/02/2029 | 2,965 | 2,965,302 | ||||||||||
Term Loan (1 mo. Term SOFR + 2.50%) | 8.18% | 06/07/2028 | 14,789 | 14,751,481 | ||||||||||
Castlelake Aviation Ltd. | ||||||||||||||
Incremental Term Loan (3 mo. Term SOFR + 2.50%) | 8.13% | 10/22/2027 | 6,945 | 6,950,904 | ||||||||||
Term Loan (1 mo. Term SOFR + 2.75%) | 7.87% | 10/22/2026 | 8,368 | 8,374,256 | ||||||||||
Dynasty Acquisition Co., Inc. | ||||||||||||||
Term Loan B-1 (1 mo. Term SOFR + 4.00%) | 9.33% | 08/24/2028 | 1,716 | 1,722,052 | ||||||||||
Term Loan B-2 (1 mo. Term SOFR + 4.00%) | 9.33% | 08/24/2028 | 736 | 738,022 | ||||||||||
Gogo Intermediate Holdings LLC, Term Loan (1 mo. Term SOFR + 3.75%) | 9.19% | 04/30/2028 | 6,332 | 6,317,614 | ||||||||||
Greenrock Finance, Inc. | ||||||||||||||
First Lien Delayed Draw Term Loan (3 mo. Term SOFR + 4.35%) | 9.70% | 07/06/2029 | 1 | 535 | ||||||||||
First Lien Term Loan (3 mo. Term SOFR + 4.25%) | 9.70% | 07/06/2029 | 1 | 1,159 | ||||||||||
KKR Apple Bidco LLC | ||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 2.75%) | 8.19% | 09/22/2028 | 14,791 | 14,752,010 | ||||||||||
First Lien Term Loan (1 mo. Term SOFR + 4.00%) | 8.83% | 09/22/2028 | 2,084 | 2,089,335 | ||||||||||
Peraton Corp., Second Lien Term Loan (3 mo. Term SOFR + 7.75%) | 13.18% | 02/01/2029 | 9,194 | 9,215,170 | ||||||||||
Propulsion (BC) Finco S.a.r.l. (Spain), Term Loan (3 mo. Term SOFR + 4.00%) | 9.10% | 09/14/2029 | 5,028 | 5,031,576 | ||||||||||
Rand Parent LLC (Atlas Air), Term Loan B (1 mo. Term SOFR + 4.25%) | 9.60% | 03/17/2030 | 8,964 | 8,966,367 | ||||||||||
Spirit AeroSystems, Inc., Term Loan (1 mo. Term SOFR + 4.50%) | 9.56% | 01/15/2027 | 1,558 | 1,561,391 | ||||||||||
Titan Acquisition Holdings L.P., Term Loan (1 mo. Term SOFR + 4.00%)(d) | 9.32% | 06/14/2030 | 3,417 | 3,425,484 | ||||||||||
TransDigm, Inc. | ||||||||||||||
Term Loan H (1 mo. Term SOFR + 3.25%) | 8.60% | 02/22/2027 | 491 | 492,506 | ||||||||||
Term Loan I (1 mo. Term SOFR + 3.25%) | 8.60% | 08/24/2028 | 13,594 | 13,635,828 | ||||||||||
Term Loan J (1 mo. Term SOFR + 3.25%) | 8.60% | 02/28/2031 | 2,460 | 2,471,775 | ||||||||||
119,611,530 | ||||||||||||||
Air Transport–2.17% | ||||||||||||||
AAdvantage Loyality IP Ltd. (American Airlines, Inc.), Term Loan (3 mo. Term SOFR + 4.75%) | 10.33% | 04/20/2028 | 26,148 | 26,689,850 | ||||||||||
American Airlines, Inc. | ||||||||||||||
Term Loan (1 mo. Term SOFR + 2.75%) | 8.60% | 02/15/2028 | 1,918 | 1,911,823 | ||||||||||
Term Loan (1 mo. Term SOFR + 3.50%) | 8.87% | 06/04/2029 | 13,972 | 13,983,615 | ||||||||||
United AirLines, Inc., Term Loan B (1 mo. Term SOFR + 2.75%) | 8.08% | 02/22/2031 | 13,242 | 13,250,587 | ||||||||||
WestJet Airlines Ltd. (Canada) | ||||||||||||||
Term Loan (3 mo. Term SOFR + 3.00%) | 8.43% | 12/11/2026 | 642 | 641,849 | ||||||||||
Term Loan (1 mo. Term SOFR + 3.75%) | 9.06% | 02/14/2031 | 12,472 | 12,386,634 | ||||||||||
68,864,358 | ||||||||||||||
Automotive–3.19% | ||||||||||||||
Adient PLC, Term Loan B-2 (1 mo. Term SOFR + 2.75%) | 8.08% | 01/31/2031 | 8,701 | 8,722,728 | ||||||||||
Autokiniton US Holdings, Inc., Term Loan B (1 mo. Term SOFR + 4.00%) | 9.44% | 04/06/2028 | 9,598 | 9,620,839 | ||||||||||
Belron Group S.A., Incremental Term Loan (3 mo. Term SOFR + 2.25%) | 7.66% | 04/18/2029 | 698 | 699,240 | ||||||||||
Constellation Auto (CONSTE/BCA) (United Kingdom) | ||||||||||||||
First Lien Term Loan B-2 (6 mo. SONIA + 4.75%) | 9.94% | 07/28/2028 | GBP | 1,187 | 1,390,793 | |||||||||
Second Lien Term Loan B-1 (6 mo. SONIA + 7.50%) | 12.69% | 07/27/2029 | GBP | 5,046 | 4,651,113 | |||||||||
DexKo Global, Inc. | ||||||||||||||
Incremental First Lien Term Loan (1 mo. Term SOFR + 4.25%) | 9.60% | 10/04/2028 | 1,645 | 1,649,139 | ||||||||||
Revolver Loan(d)(e) | 0.00% | 10/05/2026 | 4,167 | 4,132,640 | ||||||||||
Driven Holdings LLC, Term Loan (1 mo. Term SOFR + 3.00%) | 8.44% | 12/17/2028 | 5,284 | 5,246,631 | ||||||||||
Engineered Components & Systems LLC, Term Loan (1 mo. Term SOFR + 6.00%) | 11.33% | 08/30/2030 | 4,059 | 4,058,599 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 | Invesco Senior Floating Rate Fund |
Interest Rate | Maturity Date | Principal (000)(a) | Value | |||||||||||
Automotive–(continued) | ||||||||||||||
First Brands Group LLC | ||||||||||||||
First Lien Term Loan (6 mo. Term SOFR + 5.00%) | 10.57% | 03/30/2027 | $ | 9,818 | $ 9,854,022 | |||||||||
First Lien Term Loan (1 mo. Term SOFR + 5.00%) | 10.57% | 03/30/2027 | 11,422 | 11,457,628 | ||||||||||
Second Lien Term Loan(f) | - | 03/30/2028 | 3,159 | 3,133,669 | ||||||||||
Highline Aftermarket Acquisition LLC, Term Loan (1 mo. Term SOFR + 4.50%) | 9.93% | 11/09/2027 | 9,437 | 9,448,522 | ||||||||||
Mavis Tire Express Services Topco Corp., First Lien Term Loan (1 mo. Term SOFR + 3.75%) | 9.08% | 05/04/2028 | 9,302 | 9,322,531 | ||||||||||
Panther BF Aggregator 2 L.P.(Power Solutions, Clarios POWSOL) (Canada), Term Loan (1 mo. Term SOFR + 3.00%) | 8.33% | 05/06/2030 | 5,954 | 5,966,606 | ||||||||||
Project Boost Purchaser LLC, Term Loan(f) | - | 05/30/2026 | 3,532 | 3,537,219 | ||||||||||
Wand NewCo 3, Inc., First Lien Term Loan (1 mo. Term SOFR + 3.75%) | 9.08% | 01/30/2031 | 8,227 | 8,249,838 | ||||||||||
101,141,757 | ||||||||||||||
Beverage & Tobacco–0.96% | ||||||||||||||
AI Aqua Merger Sub, Inc. | ||||||||||||||
Delayed Draw Term Loan | 9.58% | 07/31/2028 | 2,004 | 2,008,505 | ||||||||||
Delayed Draw Term Loan(e) | 0.00% | 07/31/2028 | 229 | 229,655 | ||||||||||
Al Aqua Merger Sub, Inc., Term Loan B (1 mo. Term SOFR + 3.75%) | 9.08% | 07/31/2028 | 11,455 | 11,438,042 | ||||||||||
City Brewing Co. LLC, First Lien Term Loan (3 mo. Term SOFR + 3.50%) | 9.08% | 04/05/2028 | 21,496 | 16,616,119 | ||||||||||
30,292,321 | ||||||||||||||
Building & Development–2.81% | ||||||||||||||
Chariot Buyer LLC, First Lien Term Loan (1 mo. Term SOFR + 3.75%)(d) | 9.08% | 11/03/2028 | 5,671 | 5,674,680 | ||||||||||
Eleda (Platea BC Bidco), Term Loan | 0.00% | 02/21/2031 | EUR | 201 | 216,552 | |||||||||
Empire Today LLC, Term Loan B (1 mo. Term SOFR + 5.00%) | 10.57% | 04/01/2028 | 15,362 | 12,392,111 | ||||||||||
Flakt Woods (Fusilli Holdco) (France), Term Loan | 2.00% | 04/12/2026 | EUR | 1,717 | 1,705,644 | |||||||||
Icebox Holdco III, Inc., First Lien Term Loan (3 mo. Term SOFR + 3.75%) | 9.11% | 12/22/2028 | 5,041 | 5,033,422 | ||||||||||
Interior Logic Group, Inc., Term Loan B (1 mo. Term SOFR + 3.50%) | 8.93% | 04/01/2028 | 7,307 | 6,932,442 | ||||||||||
IPS Corp./CP Iris Holdco, First Lien Term Loan (1 mo. Term SOFR + 3.50%) | 9.18% | 10/02/2028 | 1,708 | 1,704,525 | ||||||||||
Janus International Group LLC, Term Loan (1 mo. Term SOFR + 3.25%) | 8.62% | 08/03/2030 | 1,583 | 1,587,571 | ||||||||||
LHS Borrow LLC (Leaf Home Solutions), Term Loan (1 mo. Term SOFR + 4.75%) | 10.18% | 02/16/2029 | 12,716 | 11,924,894 | ||||||||||
Mayfair Mall LLC, Term Loan (1 mo. Term SOFR + 3.25%)(d) | 8.69% | 04/20/2024 | 3,232 | 2,964,947 | ||||||||||
Oldcastle BuildingEnvelope, Inc., Term Loan B (3 mo. Term SOFR + 4.50%) | 9.95% | 04/29/2029 | 9,691 | 9,676,591 | ||||||||||
Quikrete Holdings, Inc. | ||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 2.63%) | 8.07% | 02/01/2027 | 4,047 | 4,052,741 | ||||||||||
First Lien Term Loan (1 mo. Term SOFR + 2.75%) | 8.19% | 03/19/2029 | 5,509 | 5,518,686 | ||||||||||
RE/MAX LLC, Term Loan (1 mo. Term SOFR + 2.50%) | 7.94% | 07/21/2028 | 1,453 | 1,399,451 | ||||||||||
Silk Bidco A/S (Norway), Term Loan B | 10.41% | 02/28/2027 | EUR | 14,280 | 9,623,983 | |||||||||
Standard Industries, Inc., Term Loan B (1 mo. Term SOFR + 2.25%) | 7.68% | 09/22/2028 | 5,179 | 5,182,937 | ||||||||||
TAMKO Building Products LLC, Term Loan (1 mo. Term SOFR + 3.50%) | 8.87% | 09/20/2030 | 3,691 | 3,698,095 | ||||||||||
89,289,272 | ||||||||||||||
Business Equipment & Services–9.42% | ||||||||||||||
Allied Universal Holdco LLC (USAGM Holdco LLC/UNSEAM), Term Loan (1 mo. Term SOFR + 4.75%) | 10.08% | 05/12/2028 | 10,778 | 10,799,676 | ||||||||||
Boost Newco Borrower LLC (WorldPay), Term Loan (1 mo. Term SOFR + 3.00%) | 8.33% | 01/31/2031 | 12,301 | 12,362,042 | ||||||||||
Camelot U.S. Acquisition 1 Co. (United Kingdom) | ||||||||||||||
Term Loan | 8.08% | 10/30/2026 | 4,078 | 4,075,051 | ||||||||||
Term Loan | 8.08% | 10/30/2026 | 4,902 | 4,895,649 | ||||||||||
Camelot US Acquisition LLC, Term Loan (1 mo. Term SOFR + 2.75%) | 8.08% | 01/31/2031 | 2,003 | 1,999,271 | ||||||||||
Checkout Holding Corp., Term Loan | 14.80% | 05/10/2027 | 9,430 | 4,950,705 | ||||||||||
Cimpress USA, Inc., Term Loan B (1 mo. Term SOFR + 3.50%) | 8.94% | 05/17/2028 | 8,839 | 8,831,178 | ||||||||||
Cloud Software Group, Inc., Term Loan B (1 mo. Term SOFR + 4.50%) | 9.99% | 03/30/2029 | 8,346 | 8,285,936 | ||||||||||
Constant Contact Inc. | ||||||||||||||
Delayed Draw Term Loan(e) | 0.00% | 02/10/2028 | 2,983 | 2,878,228 | ||||||||||
Delayed Draw Term Loan(d) | 9.60% | 02/10/2028 | 1,491 | 1,439,114 | ||||||||||
Constant Contact, Inc. | ||||||||||||||
Second Lien Term Loan (3 mo. Term SOFR + 7.50%) | 12.83% | 02/12/2029 | 3,742 | 3,405,677 | ||||||||||
Term Loan (1 mo. Term SOFR + 4.00%) | 9.59% | 02/10/2028 | 7,050 | 6,863,162 | ||||||||||
Corporation Service Co., Term Loan B (1 mo. Term SOFR + 3.25%) | 8.08% | 11/02/2029 | 4,156 | 4,162,757 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Senior Floating Rate Fund |
Interest Rate | Maturity Date | Principal (000)(a) | Value | |||||||||||
Business Equipment & Services–(continued) | ||||||||||||||
CRCI Longhorn Holdings, Inc., First Lien Term Loan (1 mo. Term SOFR + 3.50%) | 8.92% | 08/08/2025 | $ | 1,995 | $ 1,993,809 | |||||||||
Creation Technologies, Inc., First Lien Term Loan (3 mo. Term SOFR | 11.09% | 10/05/2028 | 2,642 | 2,562,625 | ||||||||||
Dakota Holding Corp. | ||||||||||||||
First Lien Term Loan (3 mo. Term SOFR + 3.75%) | 9.10% | 04/09/2027 | 15,731 | 15,567,164 | ||||||||||
Second Lien Term Loan (3 mo. Term SOFR + 6.75%) | 12.36% | 04/07/2028 | 1,901 | 1,892,441 | ||||||||||
Dun & Bradstreet Corp. (The), Incremental Term Loan B-2 (1 mo. Term SOFR + 2.75%) | 8.07% | 01/18/2029 | 13,341 | 13,326,009 | ||||||||||
Garda World Security Corp. (Canada), Term Loan (1 mo. Term SOFR + 4.25%) | 9.62% | 02/01/2029 | 13,666 | 13,685,182 | ||||||||||
GI Revelation Acquisition LLC, First Lien Term Loan (1 mo. Term SOFR + 4.00%) | 9.44% | 05/12/2028 | 15,164 | 15,110,780 | ||||||||||
I-Logic Tech Bidco Ltd. (United Kingdom), Term Loan (3 mo. Term SOFR + 4.00%) | 9.50% | 02/16/2028 | 9,026 | 8,972,486 | ||||||||||
ION Trading Technologies S.a.r.l. (Luxembourg) | ||||||||||||||
Term Loan (3 mo. EURIBOR + 4.25%) | 8.18% | 04/01/2028 | EUR | 2,666 | 2,792,704 | |||||||||
Term Loan (3 mo. Term SOFR + 4.75%) | 10.20% | 04/01/2028 | 5,535 | 5,509,386 | ||||||||||
iQor US, Inc. | ||||||||||||||
Second Lien Term Loan(f) | - | 11/19/2025 | 15,379 | 12,880,142 | ||||||||||
Term Loan (1 mo. Term SOFR + 7.50%) (Acquired 11/19/2020-06/30/2022; Cost $11,255,544)(g) | 12.93% | 11/19/2024 | 11,386 | 11,329,142 | ||||||||||
Iron Mountain Information Management LLC, Incremental Term Loan B (1 mo. Term SOFR + 2.25%) | 7.58% | 01/31/2031 | 2,962 | 2,948,789 | ||||||||||
KronosNet CX Bidco (Comspa Konecta) (Spain), Term Loan B | 9.70% | 09/30/2029 | EUR | 10,138 | 10,316,508 | |||||||||
Learning Care Group (US) No. 2, Inc., Term Loan (1 mo. Term SOFR + 4.75%) | 10.09% | 08/11/2028 | 2,824 | 2,828,479 | ||||||||||
Monitronics International, Inc., Term Loan A (3 mo. Term SOFR + 7.50%) (Acquired 06/30/2023-02/16/2024; Cost $30,531,240)(g) | 13.07% | 06/30/2028 | 30,513 | 30,722,519 | ||||||||||
OCM System One Buyer CTB LLC, Term Loan (3 mo. Term SOFR + 4.00%) | 9.50% | 03/02/2028 | 2,143 | 2,142,856 | ||||||||||
Orchid Merger Sub II LLC, Term Loan (1 mo. Term SOFR + 4.75%) (Acquired 11/12/2021-01/05/2022; Cost $9,641,921)(g) | 10.25% | 07/27/2027 | 10,032 | 6,542,924 | ||||||||||
Prime Security Services Borrower LLC, First Lien Term Loan B-1 (1 mo. Term SOFR + 2.50%) | 7.83% | 10/13/2030 | 4,397 | 4,401,296 | ||||||||||
Prometric Holdings, Inc., Term Loan (3 mo. Term SOFR + 3.00%) | 10.69% | 01/31/2028 | 4,934 | 4,943,801 | ||||||||||
Sitel Worldwide Corp., Term Loan (1 mo. Term SOFR + 3.75%) | 9.19% | 08/28/2028 | 3,806 | 3,664,576 | ||||||||||
Skillsoft Corp., Term Loan (1 mo. Term SOFR + 4.75%) | 10.68% | 07/14/2028 | 3,519 | 3,297,243 | ||||||||||
Solera (Polaris Newco LLC) | ||||||||||||||
First Lien Term Loan(f) | - | 06/02/2028 | 1,942 | 1,905,588 | ||||||||||
First Lien Term Loan | 0.00% | 06/02/2028 | GBP | 1,493 | 1,787,911 | |||||||||
Spin Holdco, Inc., Term Loan (3 mo. Term SOFR + 4.00%) | 9.62% | 03/04/2028 | 29,939 | 27,314,070 | ||||||||||
Tempo Acquisition LLC, Term Loan (1 mo. Term SOFR + 2.75%) | 8.08% | 08/31/2028 | 3,346 | 3,355,064 | ||||||||||
Trans Union LLC, Incremental Term Loan B-6 (1 mo. Term SOFR + 2.25%) | 7.33% | 12/01/2028 | 1,643 | 1,644,080 | ||||||||||
Verra Mobility Corporation (aka American Traffic Solutions), First Lien Term Loan (1 mo. Term SOFR + 3.25%) | 8.08% | 03/24/2028 | 6,620 | 6,639,428 | ||||||||||
Vestis Corp., Term Loan B(f) | - | 02/18/2031 | 3,884 | 3,896,473 | ||||||||||
298,921,921 | ||||||||||||||
Cable & Satellite Television–3.02% | ||||||||||||||
Altice Financing S.A. (Alt-Intl) (Luxembourg) | ||||||||||||||
Term Loan (3 mo. EURIBOR + 5.00%) | 8.94% | 10/31/2027 | EUR | 1,084 | 1,155,273 | |||||||||
Term Loan (3 mo. Term SOFR + 5.00%) | 10.31% | 10/31/2027 | 9,615 | 9,604,904 | ||||||||||
Atlantic Broadband Finance LLC | ||||||||||||||
Term Loan (1 mo. Term SOFR + 2.50%) | 7.94% | 09/01/2028 | 1,106 | 1,066,303 | ||||||||||
Term Loan B-1 (1 mo. Term SOFR + 3.25%) | 8.58% | 09/18/2030 | 5,730 | 5,526,505 | ||||||||||
CSC Holdings LLC | ||||||||||||||
Term Loan (1 mo. Term SOFR + 2.50%) | 7.93% | 04/15/2027 | 2,555 | 2,399,769 | ||||||||||
Term Loan B (1 mo. Term SOFR + 4.50%) | 9.82% | 01/15/2028 | 13,209 | 12,878,647 | ||||||||||
Numericable-SFR S.A. (France) | ||||||||||||||
Incremental Term Loan B-13 (1 mo. Term SOFR + 4.00%) | 9.57% | 08/14/2026 | 9,382 | 9,202,466 | ||||||||||
Term Loan B-11 (1 mo. Term SOFR + 2.75%) | 8.32% | 07/31/2025 | 2,522 | 2,499,062 | ||||||||||
Term Loan B-12 (1 mo. Term SOFR + 3.69%) | 9.26% | 01/31/2026 | 17,694 | 17,428,512 | ||||||||||
SFR-Numericable (YPSO, Alt-Fr) (France), Term Loan B-14 (3 mo. EURIBOR + 5.50%) | 9.44% | 08/15/2028 | EUR | 4,842 | 4,806,613 | |||||||||
UPC - LG, Term Loan AX (1 mo. Term SOFR + 2.93%) | 8.43% | 01/31/2029 | 9,227 | 9,203,073 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Senior Floating Rate Fund |
Interest Rate | Maturity Date | Principal (000)(a) | Value | |||||||||||
Cable & Satellite Television–(continued) | ||||||||||||||
Virgin Media 02 - LG (United Kingdom) | ||||||||||||||
Term Loan N (1 mo. Term SOFR + 2.50%) | 7.93% | 01/31/2028 | $ | 8,928 | $ 8,857,865 | |||||||||
Term Loan Q (1 mo. Term SOFR + 3.25%) | 8.68% | 01/31/2029 | 3,195 | 3,189,154 | ||||||||||
Term Loan Y (1 mo. Term SOFR + 3.25%) | 8.79% | 03/31/2031 | 8,195 | 8,155,085 | ||||||||||
95,973,231 | ||||||||||||||
Chemicals & Plastics–7.99% | ||||||||||||||
A-Gas Finco, Inc., Term Loan (1 mo. Term SOFR + 5.25%) | 10.62% | 12/14/2029 | 6,739 | 6,579,308 | ||||||||||
AkzoNoble Chemicals | ||||||||||||||
Incremental Term Loan (1 mo. Term SOFR + 4.00%) | 9.42% | 03/03/2028 | 6,941 | 6,951,753 | ||||||||||
Term Loan (1 mo. Term SOFR + 4.00%) | 9.42% | 04/03/2028 | 10,082 | 10,101,511 | ||||||||||
Aruba Investments, Inc. | ||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 4.00%) | 9.43% | 11/24/2027 | 1,990 | 1,982,360 | ||||||||||
Second Lien Term Loan (1 mo. Term SOFR + 7.75%) | 13.18% | 11/24/2028 | 4,299 | 4,112,379 | ||||||||||
Ascend Performance Materials Operations LLC, Term Loan (6 mo. Term SOFR + 4.75%) | 10.32% | 08/27/2026 | 16,993 | 16,549,236 | ||||||||||
BES (Discovery Purchaser Corp.), First Lien Term Loan (3 mo. Term SOFR + 4.38%) | 9.71% | 10/04/2029 | 9,316 | 9,282,935 | ||||||||||
Charter NEX US, Inc., Term Loan B (1 mo. Term SOFR + 3.50%) | 8.83% | 12/01/2027 | 6,281 | 6,285,226 | ||||||||||
Chemours Co. (The) | ||||||||||||||
Term Loan B-3(f) | - | 08/18/2028 | EUR | 2,850 | 2,980,169 | |||||||||
Term Loan B-3 (1 mo. Term SOFR + 3.50%) | 8.83% | 08/18/2028 | 12,701 | 12,510,490 | ||||||||||
Composite Resins Holding B.V. (AOC), Term Loan (1 mo. Term SOFR + 4.25%) | 9.68% | 10/15/2028 | 6,422 | 6,434,543 | ||||||||||
Cyanco Intermediate 2 Corp., Term Loan (1 mo. Term SOFR + 4.75%) | 10.08% | 07/10/2028 | 4,592 | 4,603,128 | ||||||||||
Derby Buyer LLC (Delrin), Term Loan (1 mo. Term SOFR + 4.25%) | 9.58% | 11/01/2030 | 4,676 | 4,690,555 | ||||||||||
Eastman Tire Additives (River Buyer, Inc.), First Lien Term Loan (1 mo. Term SOFR + 5.25%) | 10.86% | 11/01/2028 | 10,961 | 10,732,684 | ||||||||||
Flint Group (ColourOz Inv) (Germany) | ||||||||||||||
PIK Term Loan, 5.68% PIK Rate, 0.00% Cash Rate(h) | 5.68% | 12/31/2027 | 109 | 13,809 | ||||||||||
Term Loan (1 mo. EURIBOR + 8.00%)(d) | 12.00% | 06/30/2026 | EUR | 14 | 15,178 | |||||||||
Fusion (Fusion UK Holding Ltd. & US HoldCo VAD, Inc.), Term Loan (3 mo. Term SOFR + 3.75%) | 9.50% | 05/29/2029 | 1,312 | 1,310,035 | ||||||||||
Gemini HDPE LLC, Term Loan (3 mo. Term SOFR + 3.00%) | 8.57% | 12/31/2027 | 7,737 | 7,685,857 | ||||||||||
ICP Group Holdings LLC, First Lien Term Loan (1 mo. Term SOFR + 3.75%) | 9.36% | 12/29/2027 | 6,870 | 5,721,277 | ||||||||||
INEOS Enterprises Holdings US Finco LLC (United Kingdom), Term Loan B (1 mo. Term SOFR + 3.75%) | 9.19% | 07/08/2030 | 6,434 | 6,444,530 | ||||||||||
Ineos Quattro Holdings UK Ltd. (United Kingdom) | ||||||||||||||
Term Loan B (1 mo. Term SOFR + 4.25%) | 9.68% | 04/03/2029 | 6,538 | 6,456,681 | ||||||||||
Term Loan B (1 mo. Term SOFR + 3.75%) | 9.18% | 03/14/2030 | 2,605 | 2,583,293 | ||||||||||
Ineos US Finance LLC | ||||||||||||||
Term Loan (1 mo. Term SOFR + 3.75%) | 9.18% | 11/08/2027 | 12,460 | 12,472,372 | ||||||||||
Term Loan (1 mo. Term SOFR + 2.50%) | 7.93% | 11/08/2028 | 1,050 | 1,031,328 | ||||||||||
Term Loan (1 mo. Term SOFR + 3.50%) | 8.93% | 02/18/2030 | 5,330 | 5,293,573 | ||||||||||
Term Loan (1 mo. Term SOFR + 3.75%) | 9.08% | 02/15/2031 | 8,707 | 8,660,932 | ||||||||||
Kersia International S.A.S. (Belgium), Term Loan B (3 mo. EURIBOR + 3.93%) | 7.85% | 12/23/2027 | EUR | 13 | 14,690 | |||||||||
Lummus Technology Holdings V LLC (Illuminate Buyer LLC), Term Loan B (1 mo. Term SOFR + 3.50%) | 8.94% | 12/31/2029 | 3,238 | 3,241,642 | ||||||||||
Momentive Performance Materials USA, Inc., Term loan B (1 mo. Term SOFR + 4.50%) | 9.83% | 03/22/2028 | 7,792 | 7,650,575 | ||||||||||
Oxea Corp., Term Loan B-2 (1 mo. Term SOFR + 3.25%) | 8.93% | 10/14/2024 | 6,376 | 6,216,669 | ||||||||||
Proampac PG Borrower LLC, Term Loan B (1 mo. Term SOFR + 4.50%) | 9.80% | 09/15/2028 | 6,085 | 6,101,502 | ||||||||||
Quantix, Incremental Term Loan (3 mo. Term SOFR + 6.75%)(d) | 11.98% | 05/03/2025 | 4,866 | 4,725,134 | ||||||||||
Trinseo Materials Operating S.C.A. | ||||||||||||||
Incremental Term Loan (1 mo. Term SOFR + 2.50%) | 8.10% | 05/03/2028 | 11,134 | 8,375,699 | ||||||||||
Term Loan A(d) | 13.82% | 05/03/2028 | 1,309 | 1,358,140 | ||||||||||
Term Loan B | 13.82% | 05/03/2028 | 9,634 | 10,043,360 | ||||||||||
Tronox Finance LLC | ||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 3.25%) | 8.60% | 04/04/2029 | 8,519 | 8,519,017 | ||||||||||
Incremental Term Loan (1 mo. Term SOFR + 3.50%) | 8.85% | 08/16/2028 | 3,327 | 3,332,099 | ||||||||||
Univar Inc., Term Loan B (1 mo. Term SOFR + 4.50%) | 8.37% | 08/01/2030 | 267 | 290,095 | ||||||||||
Univar, Inc., Term Loan B (1 mo. Term SOFR + 4.50%) | 9.82% | 08/01/2030 | 13,202 | 13,241,544 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Senior Floating Rate Fund |
Interest Rate | Maturity Date | Principal (000)(a) | Value | |||||||||||
Chemicals & Plastics–(continued) | ||||||||||||||
V Global Holdings LLC (aka Vertellus) | ||||||||||||||
Revolver Loan (1 mo. USD LIBOR + 5.75%)(d) | 5.75% | 12/22/2025 | $ | 501 | $ 480,034 | |||||||||
Revolver Loan(d)(e) | 0.00% | 12/22/2025 | 389 | 372,362 | ||||||||||
Term Loan (6 mo. SOFR + 5.75%)(d) | 11.22% | 12/22/2027 | 7,187 | 6,884,802 | ||||||||||
W.R. Grace & Co., Term Loan (3 mo. Term SOFR + 3.75%) | 9.36% | 09/22/2028 | 11,165 | 11,176,390 | ||||||||||
253,508,896 | ||||||||||||||
Clothing & Textiles–0.57% | ||||||||||||||
ABG Intermediate Holdings 2 LLC, First Lien Term Loan B-1 (1 mo. Term SOFR + 3.50%) | 8.93% | 12/21/2028 | 15,189 | 15,244,837 | ||||||||||
BK LC Lux SPV S.a.r.l. (Birkenstock), Term Loan B (1 mo. Term SOFR + 3.25%) | 8.83% | 04/28/2028 | 2,693 | 2,699,708 | ||||||||||
17,944,545 | ||||||||||||||
Conglomerates–0.10% | ||||||||||||||
APi Group DE, Inc., Incremental Term Loan (1 mo. Term SOFR + 2.50%) | 7.94% | 01/03/2029 | 3,246 | 3,248,982 | ||||||||||
Containers & Glass Products–2.28% | ||||||||||||||
Berlin Packaging LLC, Term Loan B-5 (3 mo. Term SOFR + 3.75%) | 9.36% | 03/11/2028 | 4,890 | 4,883,769 | ||||||||||
Brook & Whittle Holding Corp., First Lien Term Loan (3 mo. Term SOFR + 4.00%) | 9.43% | 12/14/2028 | 6,758 | 6,317,480 | ||||||||||
Keter Group B.V. (Netherlands) | ||||||||||||||
PIK Term Loan B-3-A, 2.00% PIK Rate, 8.16% Cash Rate(h) | 2.00% | 03/31/2025 | EUR | 7,107 | 7,140,383 | |||||||||
Term Loan(d) | 11.93% | 12/31/2024 | EUR | 1,420 | 1,550,147 | |||||||||
Term Loan B-1 (3 mo. EURIBOR + 4.25%) | 2.00% | 03/31/2025 | EUR | 20,104 | 20,197,176 | |||||||||
LABL, Inc. (Multi-Color), Term Loan (1 mo. Term SOFR + 5.00%) | 10.43% | 10/29/2028 | 4,971 | 4,827,646 | ||||||||||
Libbey Glass, Inc., Term Loan | 0.00% | 11/22/2027 | 12,324 | 11,728,011 | ||||||||||
Logoplaste (Mar Bidco S.a.r.l.) (Portugal), Term Loan B (1 mo. Term SOFR + 4.30%) | 9.51% | 07/07/2028 | 3,532 | 3,337,582 | ||||||||||
Mold-Rite Plastics LLC (Valcour Packaging LLC), First Lien Term Loan (1 mo. USD LIBOR + 3.75%) | 9.19% | 10/04/2028 | 7,592 | 6,244,297 | ||||||||||
Pegasus BidCo B.V. (Netherlands), Term Loan (1 mo. Term SOFR + 3.75%) | 9.06% | 07/12/2029 | 6,030 | 6,053,007 | ||||||||||
72,279,498 | ||||||||||||||
Cosmetics & Toiletries–0.92% | ||||||||||||||
Bausch and Lomb, Inc. | ||||||||||||||
Incremental Term Loan (1 mo. Term SOFR + 4.00%) | 9.33% | 09/14/2028 | 4,530 | 4,529,811 | ||||||||||
Term Loan (1 mo. Term SOFR + 3.25%) | 8.67% | 05/10/2027 | 18,699 | 18,549,834 | ||||||||||
Rodenstock (Germany), Term Loan B (3 mo. EURIBOR + 5.00%) | 8.91% | 06/29/2028 | EUR | 5,831 | 6,177,660 | |||||||||
29,257,305 | ||||||||||||||
Drugs–0.07% | ||||||||||||||
Grifols Worldwide Operations USA, Inc., Term Loan B (3 mo. Term SOFR + 2.00%) | 7.43% | 11/15/2027 | 1,636 | 1,607,098 | ||||||||||
Perrigo Company PLC, Term Loan B (1 mo. Term SOFR + 2.50%) | 7.68% | 04/20/2029 | 527 | 526,162 | ||||||||||
2,133,260 | ||||||||||||||
Ecological Services & Equipment–0.71% | ||||||||||||||
Anticimex Global AB (Sweden), Term Loan B-1 (3 mo. Term SOFR + 3.50%) | 8.45% | 11/16/2028 | 670 | 669,499 | ||||||||||
EnergySolutions LLC, Term Loan (1 mo. Term SOFR + 4.00%) | 9.31% | 09/18/2030 | 7,743 | 7,774,525 | ||||||||||
Groundworks LLC | ||||||||||||||
Delayed Draw Term Loan(d)(e) | 0.00% | 03/14/2030 | 152 | 151,611 | ||||||||||
Delayed Draw Term Loan(d) | 11.82% | 03/14/2030 | 202 | 201,928 | ||||||||||
Revolver Loan(d)(e) | 0.00% | 03/14/2029 | 265 | 264,823 | ||||||||||
Term Loan B(d)(f) | - | 03/14/2030 | 4,995 | 4,984,693 | ||||||||||
Patriot Container Corp., First Lien Term Loan (1 mo. Term SOFR + 3.75%) | 9.18% | 03/20/2025 | 4,186 | 4,071,316 | ||||||||||
TruGreen L.P., Second Lien Term Loan (3 mo. Term SOFR + 8.76%) | 14.07% | 11/02/2028 | 5,636 | 4,442,755 | ||||||||||
22,561,150 | ||||||||||||||
Electronics & Electrical–6.85% | ||||||||||||||
Altar BidCo, Inc. (Brooks Automation, Inc.), Second Lien Term Loan (6 mo. Term SOFR + 5.60%) | 10.40% | 02/01/2030 | 1,427 | 1,417,241 | ||||||||||
Applied Systems, Inc., First Lien Term Loan(f) | - | 02/24/2031 | 547 | 549,636 | ||||||||||
AppLovin Corp., Term Loan (1 mo. Term SOFR + 3.00%) | 8.43% | 10/25/2028 | 3,933 | 3,942,504 | ||||||||||
Boxer Parent Co., Inc., Term Loan (1 mo. Term SOFR + 4.25%) | 9.58% | 12/29/2028 | 1,516 | 1,522,527 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Senior Floating Rate Fund |
Interest Rate | Maturity Date | Principal (000)(a) | Value | |||||||||||
Electronics & Electrical–(continued) | ||||||||||||||
CommerceHub, Inc., Term Loan B (6 mo. Term SOFR + 4.00%) | 9.48% | 01/01/2028 | $ | 2,175 | $ 2,087,514 | |||||||||
CommScope, Inc., Term Loan (1 mo. Term SOFR + 3.25%) | 8.69% | 04/06/2026 | 13,768 | 12,480,743 | ||||||||||
Diebold Nixdorf, Inc., Term Loan (1 mo. Term SOFR + 7.50%) | 12.82% | 08/11/2028 | 1,462 | 1,525,238 | ||||||||||
E2Open LLC, Term Loan (1 mo. Term SOFR + 3.50%) | 8.94% | 02/04/2028 | 3,310 | 3,312,099 | ||||||||||
Entegris, Inc., Term Loan B (1 mo. Term SOFR + 2.75%) | 7.86% | 07/06/2029 | 1,747 | 1,752,305 | ||||||||||
EverCommerce, Term Loan B (1 mo. Term SOFR + 3.25%) | 8.44% | 07/01/2028 | 1,381 | 1,383,580 | ||||||||||
GoTo Group, Inc. (LogMeIn) | ||||||||||||||
Second Lien Term Loan (1 mo. Term SOFR + 4.75%)(d) | 10.17% | 08/31/2027 | 11,764 | 8,264,178 | ||||||||||
Term Loan(d) | 0.00% | 08/31/2027 | 13,833 | 13,279,447 | ||||||||||
Idemia (Oberthur Tech/Morpho/OBETEC) (France) | ||||||||||||||
Term Loan B (3 mo. EURIBOR + 4.75%) | 8.68% | 09/30/2028 | EUR | 1,123 | 1,216,428 | |||||||||
Term Loan B(f) | - | 09/30/2028 | 4,702 | 4,713,445 | ||||||||||
Idemia Group S.A.S. (Oberthur Tech / Morpho / OBETEC), Term Loan B-5 (1 mo. Term SOFR + 4.25%) | 10.10% | 09/30/2028 | 1,994 | 1,998,685 | ||||||||||
Inetum (Granite Fin Bidco SAS), Term Loan B (3 mo. EURIBOR + 5.00%) | 8.92% | 10/17/2028 | EUR | 4,166 | 4,465,519 | |||||||||
Infinite Electronics | ||||||||||||||
First Lien Term Loan (3 mo. Term SOFR + 3.25%) | 9.32% | 03/02/2028 | 7,575 | 7,445,741 | ||||||||||
Second Lien Term Loan (3 mo. Term SOFR + 7.00%) | 12.57% | 03/02/2029 | 1,609 | 1,361,923 | ||||||||||
Informatica Corp., Term Loan (1 mo. Term SOFR + 2.75%) | 8.19% | 10/27/2028 | 6,473 | 6,487,018 | ||||||||||
Internap Corp., Term Loan(d) | 8.00% | 07/31/2028 | 1,387 | 1,387,018 | ||||||||||
ION Corp (Helios Software), Term Loan (1 mo. Term SOFR + 3.75%) | 9.07% | 07/18/2030 | 2,670 | 2,651,186 | ||||||||||
Learning Pool (Brook Bidco Ltd.) (United Kingdom) | ||||||||||||||
Term Loan (3 mo. SONIA + 6.87%)(d) | 12.06% | 08/17/2028 | GBP | 2,387 | 2,949,421 | |||||||||
Term Loan 1 (3 mo. Term SOFR + 7.01%)(d) | 12.32% | 08/17/2028 | 3,168 | 3,060,275 | ||||||||||
Mavenir Systems, Inc., Term Loan B (3 mo. Term SOFR + 4.75%) | 10.34% | 08/13/2028 | 12,710 | 8,717,177 | ||||||||||
McAfee LLC, Term Loan B-1 (1 mo. Term SOFR + 4.50%) | 9.18% | 03/01/2029 | 1,351 | 1,348,284 | ||||||||||
Mirion Technologies, Inc., Term Loan (1 mo. Term SOFR + 2.75%) | 8.36% | 10/20/2028 | 5,504 | 5,510,520 | ||||||||||
Natel Engineering Co., Inc., Term Loan (1 mo. Term SOFR + 6.25%) | 11.69% | 04/30/2026 | 13,897 | 12,299,147 | ||||||||||
Native Instruments (Music Creation Group GMBH/APTUS) (Germany), Term Loan B (3 mo. EURIBOR + 6.00%)(d) | 11.46% | 03/03/2028 | EUR | 5,364 | 5,501,556 | |||||||||
Open Text Corp. (Canada), Term Loan (1 mo. Term SOFR + 2.75%) | 8.18% | 01/31/2030 | 12,137 | 12,163,799 | ||||||||||
Particle Luxembourg S.a.r.l. (WebPros), Term Loan (3 mo. Term SOFR + 5.25%) | 10.69% | 02/18/2027 | 6,714 | 6,705,623 | ||||||||||
Philips Domestic Appliances (Nobel Bidco) (Netherlands), Term Loan B (6 mo. EURIBOR + 3.50%) | 7.48% | 06/23/2028 | EUR | 1,500 | 1,564,303 | |||||||||
Proofpoint, Inc., Term Loan B (1 mo. Term SOFR + 3.25%) | 8.69% | 08/31/2028 | 7,276 | 7,272,732 | ||||||||||
Quest Software US Holdings, Inc., First Lien Term Loan (3 mo. Term SOFR + 4.25%) | 9.71% | 02/01/2029 | 19,603 | 15,611,598 | ||||||||||
Renaissance Holding Corp. | ||||||||||||||
Term Loan | 9.58% | 04/05/2030 | 4,536 | 4,532,158 | ||||||||||
Term Loan B(f) | - | 04/08/2030 | 2,050 | 2,048,041 | ||||||||||
Sandvine Corp., Second Lien Term Loan (1 mo. Term SOFR + 8.00%) | 13.43% | 11/02/2026 | 1,652 | 784,708 | ||||||||||
SonicWall U.S. Holdings, Inc. | ||||||||||||||
Second Lien Term Loan (1 mo. Term SOFR + 7.50%) | 13.01% | 05/18/2026 | 1,353 | 1,240,287 | ||||||||||
Term Loan B (1 mo. Term SOFR + 5.00%) | 10.36% | 05/18/2028 | 9,562 | 9,430,265 | ||||||||||
Ultimate Software Group, Inc. | ||||||||||||||
First Lien Incremental Term Loan (3 mo. Term SOFR + 3.25%) | 8.68% | 05/04/2026 | 4,315 | 4,325,407 | ||||||||||
First Lien Term Loan (1 mo. Term SOFR + 3.50%) | 8.81% | 02/10/2031 | 353 | 354,256 | ||||||||||
Second Lien Incremental Term Loan (3 mo. Term SOFR + 5.25%) | 10.68% | 05/03/2027 | 700 | 708,566 | ||||||||||
UST Holdings Ltd., Term Loan B (1 mo. Term SOFR + 3.75%) | 8.94% | 11/19/2028 | 7,483 | 7,458,151 | ||||||||||
Utimaco (SGT Ultimate BidCo GmbH) (Germany) | ||||||||||||||
Term Loan B-1 (6 mo. EURIBOR + 6.25%)(d) | 10.28% | 05/31/2029 | EUR | 13,364 | 13,504,669 | |||||||||
Term Loan B-2 (3 mo. SOFR + 6.25%)(d) | 11.99% | 05/31/2029 | 7,500 | 6,930,280 | ||||||||||
217,265,198 | ||||||||||||||
Financial Intermediaries–1.11% | ||||||||||||||
Edelman Financial Center LLC (The) | ||||||||||||||
Incremental Term Loan (1 mo. Term SOFR + 3.75%) | 8.94% | 04/07/2028 | 7,857 | 7,843,096 | ||||||||||
Second Lien Term Loan (1 mo. Term SOFR + 6.75%) | 12.19% | 07/20/2026 | 705 | 708,153 | ||||||||||
EisnerAmper LLP, Term Loan B(d)(f) | - | 02/24/2031 | 5,506 | 5,478,681 | ||||||||||
LendingTree, Inc., First Lien Delayed Draw Term Loan (1 mo. SOFR + 3.75%) | 9.19% | 09/15/2028 | 10,043 | 9,339,821 | ||||||||||
Tegra118 Wealth Solutions, Inc., Term Loan (3 mo. Term SOFR + 4.00%) | 9.32% | 02/18/2027 | 7,423 | 7,109,658 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Senior Floating Rate Fund |
Interest Rate | Maturity Date | Principal (000)(a) | Value | |||||||||||
Financial Intermediaries–(continued) | ||||||||||||||
Tricor (Thevelia/Vistra-Virtue) | ||||||||||||||
First Lien Incremental Term Loan B-1 (1 mo. Term SOFR + 3.75%) | 9.07% | 06/18/2029 | $ | 671 | $ 673,689 | |||||||||
Term Loan B-1(d) | 0.00% | 10/27/2025 | EUR | 6 | 6,446 | |||||||||
Virtue (Vistra+Tricor/Thevelia LLC) | ||||||||||||||
First Lien Term Loan (3 mo. Term SOFR + 4.00%) | 9.50% | 06/18/2029 | 3,037 | 3,043,688 | ||||||||||
First Lien Term Loan B (1 mo. Term SOFR + 4.75%) | 9.07% | 06/18/2029 | 1,061 | 1,064,652 | ||||||||||
35,267,884 | ||||||||||||||
Food Products–2.59% | ||||||||||||||
Arnott’s (Snacking Investments US LLC), Term Loan (1 mo. Term SOFR + 4.00%) | 9.33% | 12/18/2026 | 995 | 996,062 | ||||||||||
Biscuit Hld S.A.S.U. (BISPOU/Cookie Acq) (France), First Lien Term Loan (6 mo. EURIBOR + 4.00%) | 8.14% | 02/15/2027 | EUR | 16,538 | 16,763,243 | |||||||||
Florida Food Products LLC | ||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 5.00%) | 10.33% | 10/18/2028 | 3,024 | 2,646,398 | ||||||||||
First Lien Term Loan (1 mo. Term SOFR + 5.00%) | 10.44% | 10/18/2028 | 19,275 | 16,874,372 | ||||||||||
Second Lien Term Loan (1 mo. USD LIBOR + 8.00%)(d) | 13.44% | 10/18/2029 | 4,194 | 3,040,742 | ||||||||||
Mosel Bidco SE (Alphia) (Germany), Term Loan B (1 mo. Term SOFR + 5.00%) | 10.35% | 09/16/2030 | 8,512 | 7,852,126 | ||||||||||
Nomad Foods Ltd. (United Kingdom), Term Loan B-4 (1 mo. Term SOFR + 3.00%) | 8.47% | 03/16/2024 | 4,690 | 4,698,034 | ||||||||||
Shearer’s Foods LLC, First Lien Term Loan (1 mo. Term SOFR + 4.00%) | 9.32% | 01/31/2031 | 6,899 | 6,900,028 | ||||||||||
Sigma Bidco (Netherlands) | ||||||||||||||
Term Loan B (1 mo. Term SOFR + 4.75%) | 10.31% | 01/02/2028 | 3,660 | 3,641,038 | ||||||||||
Term Loan B-6 (3 mo. EURIBOR + 5.00%) | 8.88% | 01/02/2028 | EUR | 17,675 | 18,891,123 | |||||||||
82,303,166 | ||||||||||||||
Food Service–0.51% | ||||||||||||||
Areas (Telfer Inv/Financiere Pax) | ||||||||||||||
Revolver Loan (1 mo. EURIBOR + 3.00%)(d) | 6.88% | 01/02/2026 | EUR | 380 | 379,728 | |||||||||
Term Loan B (6 mo. EURIBOR + 4.75%) | 8.70% | 07/01/2026 | EUR | 6,436 | 6,940,510 | |||||||||
Term Loan B(d)(e) | 0.00% | 01/02/2026 | 1,202 | 1,202,472 | ||||||||||
IRB Holding Corp., Term Loan B (1 mo. Term SOFR + 2.75%) | 8.18% | 12/15/2027 | 1,497 | 1,496,480 | ||||||||||
New Red Finance, Inc., Term Loan B-5 (1 mo. Term SOFR + 2.25%) | 7.58% | 09/23/2030 | 3,270 | 3,260,760 | ||||||||||
WW International, Inc., Term Loan (1 mo. Term SOFR + 3.50%) | 8.94% | 04/13/2028 | 5,475 | 2,884,710 | ||||||||||
16,164,660 | ||||||||||||||
Forest Products–0.05% | ||||||||||||||
Restoration Forest Products Group LLC, Term Loan (d) | 11.00% | 01/31/2031 | 1,680 | 1,680,114 | ||||||||||
Health Care–2.54% | ||||||||||||||
Acacium (Impala Bidco Ltd./ICS US, Inc.) (United Kingdom), Term Loan B (1 mo. SONIA + 4.75%) | 9.94% | 06/08/2028 | GBP | 2,000 | 2,461,484 | |||||||||
Ascend Learning LLC, First Lien Term Loan (1 mo. Term SOFR + 3.50%) | 8.93% | 12/11/2028 | 9,495 | 9,346,916 | ||||||||||
Bracket Intermediate Holding Corp. (Signant), First Lien Term Loan (1 mo. Term SOFR + 5.00%) | 10.45% | 05/08/2028 | 4,000 | 4,003,744 | ||||||||||
Curium BidCo S.a.r.l. (Luxembourg), Term Loan (1 mo. Term SOFR + 4.50%) | 9.85% | 07/31/2029 | 2,194 | 2,196,793 | ||||||||||
Ethypharm (Financiere Verdi, Orphea Ltd.) (France), Term Loan B (3 mo. SONIA + 4.50%) | 9.69% | 04/17/2028 | GBP | 1,378 | 1,640,767 | |||||||||
Explorer Holdings, Inc., First Lien Term Loan (1 mo. Term SOFR + 4.50%) | 9.94% | 02/04/2027 | 10,081 | 10,105,375 | ||||||||||
Global Medical Response, Inc. | ||||||||||||||
Term Loan (3 mo. Term SOFR + 4.25%) | 9.82% | 03/14/2025 | 1,970 | 1,746,555 | ||||||||||
Term Loan (3 mo. Term SOFR + 4.25%) | 9.84% | 10/02/2025 | 7,258 | 6,437,240 | ||||||||||
ICU Medical, Inc., Term Loan B (1 mo. Term SOFR + 2.50%) | 8.00% | 01/08/2029 | 2,552 | 2,549,980 | ||||||||||
International SOS L.P., Term Loan (3 mo. Term SOFR + 3.50%)(d) | 8.82% | 09/07/2028 | 5,155 | 5,167,387 | ||||||||||
MB2 Dental Solutions LLC | ||||||||||||||
Delayed Draw Term Loan(d)(e) | 0.00% | 02/13/2031 | 1,645 | 1,645,172 | ||||||||||
Delayed Draw Term Loan(d)(e) | 0.00% | 02/13/2031 | 987 | 987,103 | ||||||||||
Revolver Loan(d)(e) | 0.00% | 02/13/2031 | 329 | 325,744 | ||||||||||
Term Loan(d) | 11.32% | 02/15/2031 | 4,751 | 4,703,743 | ||||||||||
MedAssets Software Intermediate Holdings, Inc. (nThrive TSG) | ||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 4.00%) | 9.44% | 12/18/2028 | 9,777 | 8,218,453 | ||||||||||
Second Lien Term Loan (1 mo. Term SOFR + 6.75%) | 12.19% | 12/17/2029 | 2,752 | 1,720,926 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Senior Floating Rate Fund |
Interest Rate | Maturity Date | Principal (000)(a) | Value | |||||||||||
Health Care–(continued) | ||||||||||||||
Neuraxpharm (Cerebro BidCo/Blitz F20-80 GmbH) (Germany) | ||||||||||||||
Term Loan B (3 mo. EURIBOR + 3.75%) | 7.66% | 12/15/2027 | EUR | 10 | $ 11,088 | |||||||||
Term Loan B-2 (3 mo. EURIBOR + 3.75%) | 7.66% | 12/15/2027 | EUR | 6 | 6,405 | |||||||||
Organon & Co., Term Loan B (3 mo. Term SOFR + 3.00%) | 8.43% | 06/02/2028 | $ | 4,742 | 4,753,334 | |||||||||
PAREXEL International Corp., First Lien Term Loan (1 mo. Term SOFR + 3.25%) | 8.69% | 11/15/2028 | 2,296 | 2,296,407 | ||||||||||
Sharp Midco LLC, Incremental Term Loan B (3 mo. Term SOFR + 4.50%) | 9.85% | 12/31/2028 | 1,362 | 1,364,885 | ||||||||||
Stamina BidCo B.V. (Synthon) (Netherlands), Term Loan B (3 mo. EURIBOR + 4.00%) | 7.89% | 11/02/2028 | EUR | 760 | 821,825 | |||||||||
Summit Behavioral Healthcare LLC, First Lien Term Loan (3 mo. Term SOFR + 4.75%) | 10.35% | 11/24/2028 | 1,623 | 1,624,175 | ||||||||||
Verscend Holding Corp., Term Loan B-1 (1 mo. Term SOFR + 4.00%) | 9.44% | 08/27/2025 | 1,162 | 1,163,955 | ||||||||||
Women’s Care Holdings, Inc. | ||||||||||||||
Second Lien Term Loan (3 mo. Term SOFR + 8.25%) | 13.66% | 01/12/2029 | 1,507 | 1,180,839 | ||||||||||
Term Loan (3 mo. Term SOFR + 4.50%) | 9.91% | 01/15/2028 | 1,569 | 1,371,326 | ||||||||||
Zelis Cost Management Buyer, Inc., Term Loan B-2 (1 mo. Term SOFR + 2.75%) | 8.07% | 09/28/2029 | 2,717 | 2,719,703 | ||||||||||
80,571,324 | ||||||||||||||
Home Furnishings–1.51% | ||||||||||||||
HomeServe USA Holding Corp., Term Loan (1 mo. Term SOFR + 3.00%) | 8.32% | 10/21/2030 | 2,652 | 2,653,112 | ||||||||||
Hunter Douglas Holding B.V., Term Loan B-1 (3 mo. Term SOFR + 3.50%) | 8.82% | 02/26/2029 | 10,847 | 10,744,781 | ||||||||||
Mattress Holding Corp., Term Loan (3 mo. Term SOFR + 4.25%) | 9.86% | 09/25/2028 | 6,434 | 6,432,402 | ||||||||||
Serta Simmons Bedding LLC, Term Loan (1 mo. Term SOFR + 7.50%) | 12.96% | 06/29/2028 | 10,673 | 9,809,250 | ||||||||||
SIWF Holdings, Inc., Term Loan B (1 mo. Term SOFR + 4.00%) | 9.44% | 10/06/2028 | 9,196 | 8,356,954 | ||||||||||
VC GB Holdings, Inc. (aka Generation Brands), Second Lien Term Loan (1 mo. Term SOFR + 6.75%) | 12.36% | 07/01/2029 | 2,063 | 2,019,912 | ||||||||||
Weber-Stephen Products LLC | ||||||||||||||
Incremental Term Loan B (1 mo. Term SOFR + 4.25%) | 9.68% | 10/30/2027 | 1,855 | 1,697,096 | ||||||||||
Term Loan B (1 mo. Term SOFR + 3.25%) | 8.69% | 10/30/2027 | 6,851 | 6,251,803 | ||||||||||
47,965,310 | ||||||||||||||
Industrial Equipment–4.83% | ||||||||||||||
Arconic Rolled Products Corp, Term Loan B | 9.07% | 08/18/2030 | 4,819 | 4,827,787 | ||||||||||
Arconic Rolled Products Corp., Term Loan (1 mo. Term SOFR + 3.75%) | 9.07% | 08/18/2030 | 1,139 | 1,141,214 | ||||||||||
Chart Industries, Inc., Term Loan (1 mo. Term SOFR + 3.25%) | 8.67% | 03/15/2030 | 6,839 | 6,864,052 | ||||||||||
Crosby US Acquisition Corp., Term Loan (1 mo. Term SOFR + 4.00%) | 9.32% | 08/16/2029 | 3,367 | 3,385,370 | ||||||||||
Deliver Buyer, Inc. (MHS Holdings), Term Loan (3 mo. Term SOFR + 5.50%) | 10.83% | 06/01/2029 | 8,371 | 7,603,980 | ||||||||||
Discovery Energy Holding Corp., Term Loan B(f) | - | 01/30/2031 | 6,900 | 6,770,733 | ||||||||||
DXP Enterprises, Inc., Incremental Term Loan (1 mo. Term SOFR + 4.75%) | 10.29% | 10/11/2030 | 6,208 | 6,225,029 | ||||||||||
EMRLD Borrower L.P. (Copeland), Term Loan B (1 mo. Term SOFR + 2.50%) | 7.79% | 05/31/2030 | 7,914 | 7,906,006 | ||||||||||
Kantar (Summer BC Bidco/KANGRP) (United Kingdom) | ||||||||||||||
Revolver Loan(d)(f) | - | 06/04/2026 | 1,229 | 1,118,138 | ||||||||||
Revolver Loan(d)(e) | 0.00% | 06/04/2026 | 9,021 | 8,209,362 | ||||||||||
Term Loan B (3 mo. Term SOFR + 5.00%) | 10.63% | 12/04/2026 | 10,143 | 10,117,046 | ||||||||||
Term Loan B(d) | 10.43% | 02/13/2029 | 1,308 | 1,303,352 | ||||||||||
Madison IAQ LLC, Term Loan (1 mo. Term SOFR + 3.25%) | 8.68% | 06/21/2028 | 3,598 | 3,590,190 | ||||||||||
MKS Instruments, Inc., Term Loan B (1 mo. Term SOFR + 2.50%) | 7.82% | 08/17/2029 | 15,120 | 15,121,575 | ||||||||||
Robertshaw US Holding Corp. | ||||||||||||||
First Lien Term Loan (Acquired 05/10/2023-10/17/2023; Cost $7,663,838)(g)(i)(j) | 0.00% | 02/28/2027 | 7,763 | 7,569,198 | ||||||||||
Revolver Loan (Acquired 11/14/2023-11/22/2023; Cost $5,500,119)(d)(e)(g) | 0.00% | 06/24/2027 | 5,497 | 5,496,683 | ||||||||||
Second Lien Term Loan (Acquired 05/09/2023-07/14/2023; Cost $13,338,408)(d)(g)(i)(j) | 0.00% | 05/10/2025 | 21,991 | 12,864,886 | ||||||||||
Third Lien Term Loan (Acquired 05/09/2023; Cost $1,070,686)(d)(g)(i)(j) | 0.00% | 05/10/2025 | 3,508 | 2,052,295 | ||||||||||
Tank Holding Corp. | ||||||||||||||
Revolver Loan (1 mo. Term SOFR + 5.75%)(d) | 0.38% | 03/31/2028 | 154 | 149,139 | ||||||||||
Revolver Loan(d)(e) | 0.00% | 03/31/2028 | 768 | 745,699 | ||||||||||
Term Loan (1 mo. Term SOFR + 6.00%) | 11.18% | 03/31/2028 | 13,645 | 13,542,474 | ||||||||||
Thyssenkrupp Elevators (Vertical Midco GmbH) (Germany), Term Loan B (6 mo. Term SOFR + 3.50%) | 9.08% | 07/30/2027 | 14,981 | 15,021,056 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco Senior Floating Rate Fund |
Interest Rate | Maturity Date | Principal (000)(a) | Value | |||||||||||
Industrial Equipment–(continued) | ||||||||||||||
Victory Buyer LLC (Vantage Elevator) | ||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 3.75%) | 9.34% | 11/19/2028 | $ | 11,128 | $ 10,735,879 | |||||||||
Second Lien Term Loan (3 mo. Term SOFR + 7.00%)(d) | 12.59% | 11/19/2029 | 1,148 | 990,087 | ||||||||||
153,351,230 | ||||||||||||||
Insurance–1.62% | ||||||||||||||
Acrisure LLC | ||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 3.50%) | 8.94% | 02/15/2027 | 10,864 | 10,867,008 | ||||||||||
First Lien Term Loan (1 mo. Term SOFR + 3.75%) | 9.19% | 02/15/2027 | 4,404 | 4,409,011 | ||||||||||
First Lien Term Loan (1 mo. Term SOFR + 4.25%) | 9.69% | 02/15/2027 | 3,583 | 3,595,432 | ||||||||||
First Lien Term Loan (1 mo. Term SOFR + 4.50%) | 9.83% | 11/06/2030 | 4,696 | 4,731,580 | ||||||||||
Alliant Holdings Intermediate LLC, Term Loan B-6 (1 mo. Term SOFR + 3.50%) | 8.82% | 11/06/2030 | 9,667 | 9,681,623 | ||||||||||
Hub International Ltd., Term Loan B (1 mo. Term SOFR + 3.25%) | 8.57% | 06/20/2030 | 2,879 | 2,879,190 | ||||||||||
Ryan Specialty Group LLC, Term Loan (1 mo. Term SOFR + 3.00%) | 8.08% | 09/01/2027 | 3,417 | 3,425,077 | ||||||||||
Sedgwick Claims Management Services, Inc., Term Loan (1 mo. Term SOFR + 3.75%) | 9.08% | 02/24/2028 | 905 | 906,888 | ||||||||||
USI, Inc. | ||||||||||||||
Term Loan (1 mo. Term SOFR + 3.25%) | 8.60% | 09/27/2030 | 1,935 | 1,937,848 | ||||||||||
Term Loan B (1 mo. Term SOFR + 3.00%) | 8.35% | 11/22/2029 | 9,073 | 9,080,492 | ||||||||||
51,514,149 | ||||||||||||||
Leisure Goods, Activities & Movies–2.77% | ||||||||||||||
Carnival Corp., Incremental Term Loan B (1 mo. Term SOFR + 3.25%) | 8.69% | 10/18/2028 | 32,757 | 32,848,700 | ||||||||||
Crown Finance US, Inc., Term Loan (1 mo. Term SOFR + 8.50%) | 7.00% | 07/31/2028 | 11,033 | 11,195,477 | ||||||||||
Fitness International LLC, Term Loan B (1 mo. Term SOFR + 4.00%)(d) | 10.58% | 02/05/2029 | 7,406 | 7,211,451 | ||||||||||
Nord Anglia Education (Singapore) | ||||||||||||||
Incremental Term Loan | 9.07% | 02/15/2031 | 3,807 | 3,812,011 | ||||||||||
Term Loan B (1 mo. Term SOFR + 4.00%) | 9.34% | 01/31/2028 | 5,090 | 5,101,347 | ||||||||||
Parques Reunidos (Piolin Bidco S.A.U.) (Spain) | ||||||||||||||
Revolver Loan (3 mo. Term SOFR + 3.50%) | 7.36% | 03/16/2026 | EUR | 2,597 | 2,603,752 | |||||||||
Revolver Loan(e) | 0.00% | 03/16/2026 | 44 | 43,994 | ||||||||||
Scenic (Columbus Capital B.V.) (Australia), Term Loan (3 mo. EURIBOR + 3.75%) | 7.68% | 02/27/2027 | EUR | 9,217 | 8,880,704 | |||||||||
Seaworld Parks & Entertainment, Inc., Term Loan B-2 (1 mo. Term SOFR + 2.50%) | 7.83% | 08/25/2028 | 6,926 | 6,933,109 | ||||||||||
Topgolf Callaway Brands Corp., Term Loan (1 mo. Term SOFR + 3.50%) | 8.93% | 03/15/2030 | 2,263 | 2,267,091 | ||||||||||
Vue International Bidco PLC (United Kingdom) | ||||||||||||||
Term Loan (Acquired 02/21/2024; Cost $1,007,822)(g) | 11.89% | 06/30/2027 | EUR | 980 | 1,080,825 | |||||||||
Term Loan (6 mo. EURIBOR + 8.00%) (Acquired 09/15/2022-09/22/2022; Cost $1,861,294)(g) | 12.13% | 06/30/2027 | EUR | 1,867 | 1,986,072 | |||||||||
Term Loan | 6.50% | 12/31/2027 | EUR | 10,452 | 3,972,393 | |||||||||
87,936,926 | ||||||||||||||
Lodging & Casinos–3.38% | ||||||||||||||
Aimbridge Acquisition Co., Inc. | ||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 3.75%) | 9.19% | 02/02/2026 | 5,817 | 5,577,023 | ||||||||||
First Lien Term Loan (1 mo. Term SOFR + 4.75%) | 10.19% | 02/02/2026 | 6,543 | 6,342,695 | ||||||||||
Bally’s Corp., Term Loan B (3 mo. Term SOFR + 3.25%) | 8.83% | 10/02/2028 | 5,775 | 5,498,457 | ||||||||||
Caesars Entertainment, Inc. | ||||||||||||||
Incremental Term Loan B (1 mo. Term SOFR + 3.25%) | 8.66% | 02/06/2030 | 9,828 | 9,855,420 | ||||||||||
Term Loan (1 mo. Term SOFR + 2.75%) | 8.04% | 02/06/2031 | 14,217 | 14,223,212 | ||||||||||
Everi Holdings, Inc., Term Loan B (1 mo. Term SOFR + 2.50%) | 7.94% | 08/03/2028 | 2,221 | 2,224,733 | ||||||||||
Fertitta Entertainment LLC (Golden Nugget), Term Loan (1 mo. Term SOFR + 4.00%) | 9.33% | 01/27/2029 | 7,959 | 7,975,003 | ||||||||||
Flutter Financing B.V. (Stars Group), Term Loan B (1 mo. Term SOFR + 3.25%) | 8.86% | 07/22/2028 | 3,353 | 3,363,198 | ||||||||||
GVC Finance LLC | ||||||||||||||
Term Loan B (3 mo. Term SOFR + 2.50%) | 7.95% | 03/29/2027 | 543 | 543,839 | ||||||||||
Term Loan B-2 (3 mo. Term SOFR + 3.50%) | 8.95% | 10/31/2029 | 11,135 | 11,176,933 | ||||||||||
Hilton Grand Vacations Borrower LLC, Term Loan (1 mo. Term SOFR + 3.00%) | 8.19% | 08/02/2028 | 8,426 | 8,430,220 | ||||||||||
HotelBeds (United Kingdom) | ||||||||||||||
Term Loan B-2 (3 mo. EURIBOR + 5.00%) | 8.70% | 09/12/2028 | EUR | 4,800 | 5,198,154 | |||||||||
Term Loan D (6 mo. EURIBOR + 5.25%) | 9.18% | 09/12/2027 | EUR | 8,230 | 8,923,409 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 | Invesco Senior Floating Rate Fund |
Interest Rate | Maturity Date | Principal (000)(a) | Value | |||||||||||
Lodging & Casinos–(continued) | ||||||||||||||
Light and Wonder International, Inc., Term Loan B-1 (1 mo. Term SOFR + 2.75%) | 8.07% | 04/14/2029 | $ | 4,944 | $ 4,955,835 | |||||||||
Penn Entertainment, Inc., Term Loan B (1 mo. Term SOFR + 2.75%) | 8.18% | 05/03/2029 | 7,788 | 7,763,256 | ||||||||||
Scientific Games Lottery, First Lien Term Loan (3 mo. Term SOFR + 3.50%) | 8.58% | 04/04/2029 | 465 | 464,377 | ||||||||||
Travel + Leisure Co., Incremental Term Loan (1 mo. Term SOFR + 3.25%) | 8.67% | 12/14/2029 | 4,866 | 4,876,223 | ||||||||||
107,391,987 | ||||||||||||||
Nonferrous Metals & Minerals–0.91% | ||||||||||||||
American Rock Salt Co. LLC | ||||||||||||||
First Lien Term Loan (1 mo. Term SOFR + 4.00%) | 9.44% | 06/09/2028 | 6,816 | 6,225,485 | ||||||||||
Second Lien Term Loan (1 mo. Term SOFR + 7.25%) | 12.69% | 06/11/2029 | 369 | 313,521 | ||||||||||
AZZ, Inc., Term Loan (1 mo. Term SOFR + 4.25%) | 9.08% | 05/13/2029 | 6,839 | 6,854,341 | ||||||||||
Covia Holdings Corp., Term Loan (3 mo. Term SOFR + 4.00%) | 9.59% | 07/31/2026 | 7,737 | 7,725,073 | ||||||||||
Form Technologies LLC | ||||||||||||||
First Lien Term Loan (3 mo. Term SOFR + 4.50%) | 9.94% | 07/19/2025 | 5,059 | 4,802,852 | ||||||||||
First Lien Term Loan (3 mo. Term SOFR + 9.00%) | 14.44% | 10/22/2025 | 3,022 | 2,153,121 | ||||||||||
SCIH Salt Holdings, Inc. (Kissner Group), First Lien Incremental Term Loan B-1 (3 mo. Term SOFR + 4.00%) | 9.44% | 03/16/2027 | 855 | 856,045 | ||||||||||
28,930,438 | ||||||||||||||
Oil & Gas–2.03% | ||||||||||||||
GIP Pilot Acquisition Partners L.P. (Global Infrastructure), Term Loan (3 mo. Term SOFR + 3.00%) | 8.33% | 10/04/2030 | 4,064 | 4,070,654 | ||||||||||
Gulf Finance LLC, Term Loan (1 mo. Term SOFR + 6.75%) | 12.19% | 08/25/2026 | 3,467 | 3,470,123 | ||||||||||
ITT Holdings LLC (IMTT), Incremental Term Loan | 0.00% | 10/11/2030 | 4,207 | 4,142,173 | ||||||||||
McDermott International Ltd. | ||||||||||||||
LOC(e) | 0.00% | 06/28/2024 | 15,188 | 9,871,999 | ||||||||||
LOC (3 mo. SOFR + 4.00%)(d) | 9.57% | 06/30/2024 | 6,100 | 3,202,815 | ||||||||||
LOC (Acquired 09/08/2023; Cost $3,887,847)(d)(e)(g) | 0.00% | 12/31/2026 | 3,888 | 3,324,109 | ||||||||||
LOC (3 mo. Term SOFR + 4.75%) (Acquired 09/08/2023; Cost $678,141)(d)(g) | 0.50% | 12/31/2026 | 1,354 | 1,157,657 | ||||||||||
PIK Second Lien Term Loan, 3.00% PIK Rate, 6.44% Cash Rate(h) | 3.00% | 06/30/2025 | 4,066 | 1,694,281 | ||||||||||
Term Loan (1 mo. Term SOFR + 3.00%) (Acquired 06/30/2020; Cost $425,602)(d)(g) | 8.44% | 06/28/2024 | 425 | 233,950 | ||||||||||
Term Loan (Acquired 09/12/2023-12/08/2023; Cost $4,200,259)(d)(g) | 13.14% | 12/31/2026 | 4,200 | 4,147,756 | ||||||||||
Par Petroleum LLC and Par Petroleum Finance Corp. (Par Pacific), Term Loan B (1 mo. Term SOFR + 4.25%) | 9.69% | 02/14/2030 | 4,762 | 4,771,215 | ||||||||||
Petroleum GEO-Services ASA (Norway), Term Loan | 12.10% | 03/18/2024 | 1,752 | 1,764,064 | ||||||||||
PG Investment Co. 59 S.a.r.l./URSA Minor US Bidco LLC (Rosen) (Luxembourg), Term Loan B(f) | - | 02/24/2031 | 6,466 | 6,479,142 | ||||||||||
Planet US Buyer LLC (Wood Mackenzie), Term Loan (1 mo. Term SOFR + 3.50%) | 8.81% | 02/07/2031 | 5,629 | 5,632,170 | ||||||||||
Prairie ECI Acquiror L.P., Term Loan B(f) | - | 08/01/2029 | 5,438 | 5,405,333 | ||||||||||
TransMontaigne Partners LLC, Term Loan B (1 mo. Term SOFR + 3.50%) | 8.94% | 11/17/2028 | 4,323 | 4,289,795 | ||||||||||
WhiteWater Whistler Holdings LLC, Term Loan B-1 (1 mo. Term SOFR + 2.75%) | 8.13% | 02/15/2030 | 751 | 751,568 | ||||||||||
64,408,804 | ||||||||||||||
Publishing–2.87% | ||||||||||||||
Adtalem Global Education, Inc., Term Loan (1 mo. Term SOFR + 3.50%) | 8.83% | 08/12/2028 | 1,037 | 1,040,437 | ||||||||||
Cengage Learning, Inc., Term Loan B (3 mo. Term SOFR + 4.75%) | 10.33% | 06/29/2026 | 16,726 | 16,745,249 | ||||||||||
Century DE Buyer LLC (Simon & Schuster), Term Loan (3 mo. Term SOFR + 4.00%) | 9.32% | 10/30/2030 | 4,649 | 4,672,993 | ||||||||||
Clear Channel Worldwide Holdings, Inc., Term Loan B (3 mo. Term SOFR + 3.50%) | 9.07% | 08/21/2026 | 9,835 | 9,817,622 | ||||||||||
Dotdash Meredith, Inc., Term Loan B (1 mo. Term SOFR + 4.00%) | 9.43% | 12/01/2028 | 18,097 | 17,976,133 | ||||||||||
Harbor Purchaser, Inc. (Houghton Mifflin Harcourt) | ||||||||||||||
First Lien Term Loan B (1 mo. Term SOFR + 5.25%) | 10.68% | 04/09/2029 | 11,747 | 11,562,101 | ||||||||||
Second Lien Term Loan B (1 mo. Term SOFR + 8.00%) | 13.83% | 04/08/2030 | 8,093 | 7,480,274 | ||||||||||
McGraw-Hill Education, Inc., Term Loan (1 mo. Term SOFR + 4.75%) | 10.19% | 07/28/2028 | 17,099 | 17,057,382 | ||||||||||
Micro Holding L.P., Term Loan B-3 (1 mo. Term SOFR + 4.25%) | 9.58% | 05/03/2028 | 4,839 | 4,767,511 | ||||||||||
91,119,702 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 | Invesco Senior Floating Rate Fund |
Interest Rate | Maturity Date | Principal (000)(a) | Value | |||||||||||
Radio & Television–0.43% | ||||||||||||||
iHeartCommunications, Inc. | ||||||||||||||
Second Lien Incremental Term Loan (1 mo. Term SOFR + 3.25%) | 8.69% | 05/01/2026 | $ | 3,221 | $ 2,759,595 | |||||||||
Term Loan (1 mo. Term SOFR + 3.00%) | 8.44% | 05/01/2026 | 11,359 | 10,052,867 | ||||||||||
Sinclair Television Group, Inc., Term Loan B-3 (1 mo. Term SOFR + 3.00%) | 8.44% | 04/01/2028 | 1,114 | 940,360 | ||||||||||
13,752,822 | ||||||||||||||
Retailers (except Food & Drug)–1.52% | ||||||||||||||
Action Holding B.V. (Netherlands), Term Loan B-4 (1 mo. Term SOFR + 3.25%) | 8.60% | 10/28/2030 | 8,089 | 8,121,004 | ||||||||||
Bass Pro Group LLC, Term Loan B-2 (1 mo. Term SOFR + 3.75%) | 9.19% | 03/06/2028 | 11,306 | 11,328,609 | ||||||||||
CNT Holdings I Corp. (1-800 Contacts), First Lien Term Loan (3 mo. Term SOFR + 3.50%) | 8.82% | 11/08/2027 | 11,576 | 11,583,877 | ||||||||||
Petco Animal Supplies, Inc., First Lien Term loan (3 mo. Term SOFR + 3.25%) | 8.86% | 03/02/2028 | 4,174 | 3,998,550 | ||||||||||
PetSmart, Inc., Term Loan (1 mo. Term SOFR + 3.75%) | 9.18% | 02/11/2028 | 7,881 | 7,862,988 | ||||||||||
Savers, Inc., Term Loan (1 mo. Term SOFR + 5.50%) | 9.36% | 04/26/2028 | 5,133 | 5,164,064 | ||||||||||
48,059,092 | ||||||||||||||
Surface Transport–1.71% | ||||||||||||||
Carriage Purchaser, Inc., Term Loan B (1 mo. Term SOFR + 4.25%) | 9.69% | 09/30/2028 | 2,695 | 2,695,855 | ||||||||||
First Student Bidco, Inc. | ||||||||||||||
Incremental Term Loan B (3 mo. Term SOFR + 4.00%) | 9.45% | 07/21/2028 | 11,282 | 11,292,873 | ||||||||||
Term Loan B (3 mo. Term SOFR + 3.00%) | 8.61% | 07/21/2028 | 8,974 | 8,921,309 | ||||||||||
Term Loan C (3 mo. Term SOFR + 3.00%) | 8.36% | 07/21/2028 | 2,721 | 2,705,626 | ||||||||||
Hurtigruten (Explorer II AS) (United Kingdom) | ||||||||||||||
Term Loan | 12.39% | 02/22/2029 | EUR | 10,016 | 4,348,090 | |||||||||
Term Loan B | 10.91% | 09/30/2027 | EUR | 5,447 | 5,583,026 | |||||||||
Novae LLC, Term Loan B (3 mo. Term SOFR + 5.00%) | 10.52% | 12/22/2028 | 982 | 978,014 | ||||||||||
PODS LLC | ||||||||||||||
Incremental Term Loan B (1 mo. Term SOFR + 4.00%)(d) | 9.44% | 03/31/2028 | 4,839 | 4,778,863 | ||||||||||
Term Loan (1 mo. Term SOFR + 3.00%) | 8.44% | 03/31/2028 | 11,253 | 11,093,439 | ||||||||||
Reception Purchaser LLC (STG - XPOI Opportunity), Term Loan (1 mo. Term SOFR + 6.00%) | 11.50% | 03/24/2028 | 4,006 | 1,882,656 | ||||||||||
54,279,751 | ||||||||||||||
Telecommunications–4.75% | ||||||||||||||
Avaya, Inc., Term Loan | 6.83% | 08/01/2028 | 8,394 | 7,478,017 | ||||||||||
Cablevision Lightpath LLC, Term Loan (1 mo. Term SOFR + 3.25%) | 8.68% | 11/30/2027 | 5,586 | 5,562,497 | ||||||||||
CCI Buyer, Inc. (Consumer Cellular), First Lien Term Loan (3 mo. Term SOFR + 3.75%) | 9.35% | 12/17/2027 | 15,241 | 15,164,684 | ||||||||||
CenturyLink, Inc., Term Loan B (1 mo. Term SOFR + 2.25%) | 7.69% | 03/15/2027 | 20,390 | 14,932,334 | ||||||||||
Crown Subsea Communications Holding, Inc., Term Loan (1 mo. Term SOFR + 4.75%)(d) | 10.07% | 01/30/2031 | 13,601 | 13,686,231 | ||||||||||
Frontier Communications Holdings LLC, Term Loan B (1 mo. Term SOFR + 3.75%) | 9.19% | 10/08/2027 | 38 | 38,430 | ||||||||||
Genesys Cloud Services Holdings I LLC, Incremental Term Loan (1 mo. Term SOFR + 3.75%) | 9.19% | 12/01/2027 | 2,020 | 2,028,966 | ||||||||||
II-VI, Inc., Term Loan B (1 mo. Term SOFR + 2.75%) | 8.19% | 07/02/2029 | 10,216 | 10,236,020 | ||||||||||
Inmarsat Finance PLC (United Kingdom), Term Loan (1 mo. Term SOFR + 3.50%) | 8.83% | 12/11/2026 | 5,874 | 5,873,592 | ||||||||||
Iridium Satellite LLC, Term Loan (1 mo. Term SOFR + 2.50%) | 7.83% | 09/20/2030 | 443 | 443,413 | ||||||||||
MLN US HoldCo LLC (dba Mitel) | ||||||||||||||
First Lien Term Loan B (3 mo. Term SOFR + 4.50%) | 9.97% | 11/30/2025 | 358 | 44,128 | ||||||||||
Second Lien Term Loan B (3 mo. Term SOFR + 8.75%) | 14.22% | 11/30/2026 | 923 | 90,044 | ||||||||||
Second Lien Term Loan B-1 (3 mo. SOFR + 6.70%) | 12.11% | 10/18/2027 | 23,470 | 4,694,094 | ||||||||||
Term Loan (3 mo. SOFR + 6.44%) | 11.85% | 10/18/2027 | 9,986 | 5,991,809 | ||||||||||
Third Lien Term Loan (3 mo. SOFR + 9.25%) | 14.66% | 10/18/2027 | 8,152 | 1,127,689 | ||||||||||
Radiate Holdco LLC, Term Loan B (1 mo. Term SOFR + 3.25%) | 8.69% | 09/25/2026 | 10,322 | 8,502,517 | ||||||||||
Telesat LLC, Term Loan B-5 (1 mo. Term SOFR + 2.75%) | 8.35% | 12/07/2026 | 12,567 | 7,563,481 | ||||||||||
ViaSat, Inc. | ||||||||||||||
Term Loan (1 mo. Term SOFR + 3.75%) | 9.83% | 03/02/2029 | 10,074 | 9,918,692 | ||||||||||
Term Loan B (1 mo. Term SOFR + 4.50%) | 9.94% | 05/30/2030 | 3,729 | 3,674,774 | ||||||||||
Voyage Digital (NC) Ltd., Term Loan B (3 mo. Term SOFR + 4.50%)(d) | 9.32% | 05/10/2029 | 7,149 | 7,166,595 | ||||||||||
Windstream Services LLC, Term Loan (1 mo. Term SOFR + 6.25%) | 11.68% | 09/21/2027 | 12,501 | 12,123,600 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 | Invesco Senior Floating Rate Fund |
Interest Rate | Maturity Date | Principal (000)(a) | Value | |||||||||||
Telecommunications–(continued) | ||||||||||||||
Zayo Group Holdings, Inc. | ||||||||||||||
Incremental Term Loan (1 mo. Term SOFR + 4.25%) | 9.65% | 03/09/2027 | $ | 4,978 | $ 4,507,392 | |||||||||
Term Loan (1 mo. Term SOFR + 3.00%) | 8.44% | 03/09/2027 | 11,073 | 9,998,073 | ||||||||||
150,847,072 | ||||||||||||||
Utilities–2.25% | ||||||||||||||
Brookfield WEC Holdings, Inc., First Lien Term Loan (1 mo. Term SOFR + 2.75%) | 8.08% | 01/20/2031 | 13,739 | 13,702,798 | ||||||||||
Covanta Energy Corp. | ||||||||||||||
Incremental Term Loan B (1 mo. Term SOFR + 3.00%) | 8.32% | 11/30/2028 | 2,700 | 2,697,733 | ||||||||||
Term Loan C | 8.07% | 11/30/2028 | 63 | 63,108 | ||||||||||
Covanta Holding Corp. | ||||||||||||||
Incremental Term Loan B (1 mo. Term SOFR + 2.75%) | 8.07% | 11/30/2028 | 274 | 273,521 | ||||||||||
Incremental Term Loan C | 8.07% | 11/30/2028 | 117 | 116,499 | ||||||||||
Frontera Generation Holdings LLC | ||||||||||||||
First Lien Term Loan (Prime Rate + 13.00%) (Acquired 07/28/2021; Cost $4,144,155)(g) | 18.61% | 07/28/2026 | 4,165 | 4,664,777 | ||||||||||
Second Lien Term Loan (Prime Rate + 1.50%) (Acquired 07/28/2021; Cost $2,333,289)(g) | 7.11% | 07/28/2028 | 4,043 | 2,122,355 | ||||||||||
Generation Bridge Northeast LLC, Term Loan B (1 mo. Term SOFR + 4.25%) | 9.58% | 08/22/2029 | 4,372 | 4,391,417 | ||||||||||
Granite Generation LLC, Term Loan (1 mo. Term SOFR + 3.75%) | 9.19% | 11/09/2026 | 8,637 | 8,641,569 | ||||||||||
KAMC Holdings, Inc. (Franklin Energy Group), First Lien Term Loan B (6 mo. Term SOFR + 4.00%) | 9.60% | 08/14/2026 | 5,856 | 5,353,282 | ||||||||||
Lightstone Holdco LLC | ||||||||||||||
Term Loan B (1 mo. Term SOFR + 5.75%) | 11.06% | 01/29/2027 | 16,698 | 16,053,834 | ||||||||||
Term Loan C (1 mo. Term SOFR + 5.75%) | 11.06% | 01/29/2027 | 941 | 904,997 | ||||||||||
Nautilus Power LLC, Term Loan (1 mo. Term SOFR + 5.25%) | 10.86% | 11/16/2026 | 858 | 732,510 | ||||||||||
Talen Energy Supply LLC | ||||||||||||||
Term Loan B (1 mo. Term SOFR + 4.50%) | 9.83% | 05/17/2030 | 7,116 | 7,147,744 | ||||||||||
Term Loan C (1 mo. Term SOFR + 4.50%) | 9.83% | 05/17/2030 | 4,385 | 4,404,484 | ||||||||||
71,270,628 | ||||||||||||||
Total Variable Rate Senior Loan Interests (Cost $2,705,070,022) | 2,609,108,283 | |||||||||||||
Shares | ||||||||||||||
Common Stocks & Other Equity Interests–7.62% | ||||||||||||||
Automotive–0.01% | ||||||||||||||
Cabonline (Acquired 10/30/2023; Cost $10) (Sweden)(d)(g) | 10,623,352 | 1,030 | ||||||||||||
Cabonline (Sweden)(d) | 9,066,619 | 441 | ||||||||||||
Cabonline (Acquired 10/30/2023; Cost $271,002) (Sweden)(d)(g) | 301,850,286 | 393,095 | ||||||||||||
394,566 | ||||||||||||||
Building & Development–0.00% | ||||||||||||||
Fagus Holdco PLC (Spain)(d) | 12,156 | 0 | ||||||||||||
Business Equipment & Services–1.57% | ||||||||||||||
iQor US, Inc. (Acquired 11/19/2020; Cost $5,420,112)(g) | 451,676 | 602,310 | ||||||||||||
Monitronics International, Inc. (Acquired 06/30/2023; Cost $8,930,896)(g) | 443,661 | 9,427,796 | ||||||||||||
My Alarm Center LLC, Class A (Acquired 03/09/2021-12/03/2021; | 162,067 | 39,698,378 | ||||||||||||
49,728,484 | ||||||||||||||
Chemicals & Plastics–0.00% | ||||||||||||||
Flint Group (ColourOz Inv) (Germany)(d) | 92,542 | 0 | ||||||||||||
Containers & Glass Products–0.14% | ||||||||||||||
Libbey Glass LLC | 864,916 | 4,486,752 | ||||||||||||
Electronics & Electrical–0.10% | ||||||||||||||
Internap Corp. (Acquired 02/06/2018-02/10/2023; Cost $7,928,094)(d)(g)(k) | 2,996,076 | 3,145,880 | ||||||||||||
Home Furnishings–0.09% | ||||||||||||||
Serta Simmons Bedding LLC (Acquired 06/29/2023; Cost $53,939)(g) | 347,996 | 2,718,719 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 | Invesco Senior Floating Rate Fund |
Shares | Value | |||||||||||||
Industrial Equipment–0.05% | ||||||||||||||
North American Lifting Holdings, Inc.(k) | 679,193 | $ 1,719,377 | ||||||||||||
Leisure Goods, Activities & Movies–0.25% | ||||||||||||||
Crown Finance US, Inc. | 488,617 | 7,787,334 | ||||||||||||
Crown Finance US, Inc. | 3,273 | 52,163 | ||||||||||||
Vue International Bidco PLC (United Kingdom)(d) | 9,990,918 | 0 | ||||||||||||
7,839,497 | ||||||||||||||
Nonferrous Metals & Minerals–0.89% | ||||||||||||||
ACNR Holdings, Inc. | 335,868 | 28,240,957 | ||||||||||||
Oil & Gas–4.19% | ||||||||||||||
Harvey Gulf International Marine LLC(k) | 116,926 | 3,420,086 | ||||||||||||
McDermott International Ltd. (Acquired 12/30/2020-09/08/2023; | 1,853,702 | 297,612 | ||||||||||||
QuarterNorth Energy Holding, Inc. (Acquired 06/02/2021-10/29/2021; | 671,335 | 115,693,510 | ||||||||||||
Sabine Oil & Gas Holdings, Inc. (Acquired 01/16/2013-03/12/2021; | 18,025 | 2,704 | ||||||||||||
Seadrill Ltd. (Norway)(l) | 57,309 | 2,418,440 | ||||||||||||
Southcross Energy Partners L.P. (Acquired 07/30/2014-10/29/2020; | 2,914,935 | 0 | ||||||||||||
Tribune Resources LLC (Acquired 03/30/2018; Cost $18,014,717)(g)(k) | 5,811,199 | 11,041,278 | ||||||||||||
132,873,630 | ||||||||||||||
Surface Transport–0.26% | ||||||||||||||
Commercial Barge Line Co.(d) | 35,397 | 3,976,853 | ||||||||||||
Commercial Barge Line Co., Series B, Wts., expiring 04/30/2045(d)(k) | 100,115 | 62,572 | ||||||||||||
Commercial Barge Line Co., Wts., expiring 04/27/2045(d)(k) | 37,211 | 4,180,656 | ||||||||||||
Hurtigruten (Explorer II AS), Term Loan (Norway) | 1,414,767 | 0 | ||||||||||||
8,220,081 | ||||||||||||||
Telecommunications–0.07% | ||||||||||||||
Avaya Holdings Corp. (Acquired 05/01/2023; Cost $4,295,205)(g) | 286,347 | 1,932,985 | ||||||||||||
Avaya, Inc. (Acquired 05/01/2023; Cost $778,995)(g) | 51,933 | 350,574 | ||||||||||||
2,283,559 | ||||||||||||||
Utilities–0.00% | ||||||||||||||
Frontera Generation Holdings LLC (Acquired 07/28/2021-11/30/2021; | 295,967 | 16,278 | ||||||||||||
Total Common Stocks & Other Equity Interests (Cost $220,929,809) | 241,667,780 | |||||||||||||
Interest Rate | Maturity Date | Principal Amount (000)(a) | ||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes–3.89%(m) | ||||||||||||||
Automotive–0.18% | ||||||||||||||
Cabonline Group Holding AB (Sweden) (Acquired 10/13/2023; | 14.00% | 03/19/2026 | SEK | 9,067 | 918,684 | |||||||||
Cabonline Group Holding AB (Sweden) (Acquired 03/24/2022; | 0.00% | 04/19/2026 | SEK | 35,057 | 3,119,708 | |||||||||
Cabonline Group Holding AB (Sweden) (Acquired 10/12/2023; | 14.00% | 03/19/2026 | SEK | 18,133 | 1,725,547 | |||||||||
5,763,939 | ||||||||||||||
Building & Development–0.08% | ||||||||||||||
APCOA Parking Holdings GmbH (Germany) (3 mo. EURIBOR + 5.00%)(n)(o) | 8.94% | 01/15/2027 | EUR | 750 | 817,720 | |||||||||
APCOA Parking Holdings GmbH (Germany) (3 mo. EURIBOR + 5.00%)(n)(o) | 8.94% | 01/15/2027 | EUR | 1,500 | 1,635,440 | |||||||||
Fagus Holdco PLC (United Kingdom) (Acquired 09/05/2023; Cost $0)(d)(g) | 1.00% | 09/05/2029 | EUR | 200 | 216,670 | |||||||||
2,669,830 | ||||||||||||||
Cable & Satellite Television–0.11% | ||||||||||||||
Altice Finco S.A. (Luxembourg)(n) | 4.75% | 01/15/2028 | EUR | 3,744 | 3,419,304 | |||||||||
Electronics & Electrical–0.19% | ||||||||||||||
Versuni Group B.V. (Netherlands)(n) | 3.13% | 06/15/2028 | EUR | 6,382 | 6,010,112 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 | Invesco Senior Floating Rate Fund |
Interest Rate | Maturity Date | Principal (000)(a) | Value | |||||||||||
Financial Intermediaries–1.69% | ||||||||||||||
AnaCap Financial Europe S.A. SICAV-RAIF (Italy) (3 mo. EURIBOR + | 8.90% | 07/15/2030 | EUR | 13,583 | $ 9,280,571 | |||||||||
Garfunkelux Holdco 3 S.A. (Luxembourg)(n) | 6.75% | 11/01/2025 | EUR | 2,100 | 1,789,926 | |||||||||
Garfunkelux Holdco 3 S.A. (Luxembourg) (3 mo. EURIBOR + 6.25%)(n)(o) | 10.15% | 05/01/2026 | EUR | 9,341 | 7,966,171 | |||||||||
Garfunkelux Holdco 3 S.A. (Luxembourg)(n) | 6.75% | 11/01/2025 | EUR | 4,000 | 3,409,382 | |||||||||
Sherwood Financing PLC (United Kingdom)(n) | 4.50% | 11/15/2026 | EUR | 1,391 | 1,400,011 | |||||||||
Sherwood Financing PLC (United Kingdom)(n) | 6.00% | 11/15/2026 | GBP | 1,404 | 1,591,480 | |||||||||
Sherwood Financing PLC (United Kingdom) (3 mo. EURIBOR + 4.63%)(n)(o) | 8.53% | 11/15/2027 | EUR | 9,180 | 9,686,098 | |||||||||
Sherwood Financing PLC (United Kingdom) (3 mo. EURIBOR + 4.63%)(n)(o) | 8.53% | 11/15/2027 | EUR | 2,500 | 2,637,826 | |||||||||
Very Group Funding PLC (The) (United Kingdom)(n) | 6.50% | 08/01/2026 | GBP | 14,141 | 16,044,811 | |||||||||
53,806,276 | ||||||||||||||
Food Products–0.35% | ||||||||||||||
Sigma Holdco B.V. (Netherlands)(n) | 5.75% | 05/15/2026 | EUR | 10,795 | 11,057,618 | |||||||||
Industrial Equipment–0.20% | ||||||||||||||
Summer (BC) Holdco A S.a.r.l. (United Kingdom)(n) | 9.25% | 10/31/2027 | EUR | 5,984 | 6,389,350 | |||||||||
Leisure Goods, Activities & Movies–0.05% | ||||||||||||||
Deuce Finco PLC (United Kingdom)(n) | 5.50% | 06/15/2027 | GBP | 1,363 | 1,620,320 | |||||||||
Retailers (except Food & Drug)–0.73% | ||||||||||||||
Douglas Service GmbH (Germany)(n) | 6.00% | 04/08/2026 | EUR | 11,129 | 12,127,414 | |||||||||
Kirk Beauty SUN GmbH ,9.00% PIK Rate, 8.25% Cash Rate (Germany)(h)(n) | 9.00% | 10/01/2026 | EUR | 9,980 | 10,945,251 | |||||||||
23,072,665 | ||||||||||||||
Surface Transport–0.31% | ||||||||||||||
Windstream Services LLC (United Kingdom)(n) | 6.50% | 06/30/2027 | GBP | 752 | 748,720 | |||||||||
Zenith Finco PLC (United Kingdom)(n) | 6.50% | 06/30/2027 | GBP | 9,042 | 9,002,566 | |||||||||
9,751,286 | ||||||||||||||
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $137,468,706) | 123,560,700 | |||||||||||||
U.S. Dollar Denominated Bonds & Notes–3.62% | ||||||||||||||
Aerospace & Defense–0.39% | ||||||||||||||
Castlelake Aviation Finance DAC (n) | 5.00% | 04/15/2027 | $ | 5,800 | 5,510,151 | |||||||||
Rand Parent LLC(n) | 8.50% | 02/15/2030 | 7,113 | 6,917,905 | ||||||||||
12,428,056 | ||||||||||||||
Automotive–0.01% | ||||||||||||||
Wand NewCo 3, Inc. (n) | 7.63% | 01/30/2032 | 165 | 169,677 | ||||||||||
Building & Development–0.52% | ||||||||||||||
Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LLC (n) | 5.75% | 05/15/2026 | 5,180 | 5,000,923 | ||||||||||
Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LLC(n) | 4.50% | 04/01/2027 | 9,367 | 8,245,407 | ||||||||||
Signal Parent, Inc.(n) | 6.13% | 04/01/2029 | 3,960 | 3,093,829 | ||||||||||
16,340,159 | ||||||||||||||
Business Equipment & Services–0.27% | ||||||||||||||
ADT Security Corp. (The) (n) | 4.13% | 08/01/2029 | 4,743 | 4,291,110 | ||||||||||
Allied Universal Holdco LLC(n) | 7.88% | 02/15/2031 | 1,569 | 1,560,103 | ||||||||||
GTCR W-2 Merger Sub LLC(n) | 7.50% | 01/15/2031 | 2,651 | 2,767,167 | ||||||||||
8,618,380 | ||||||||||||||
Cable & Satellite Television–0.83% | ||||||||||||||
Altice Financing S.A. (Luxembourg) (n) | 5.75% | 08/15/2029 | 1,414 | 1,219,357 | ||||||||||
Altice Financing S.A. (Luxembourg)(n) | 5.00% | 01/15/2028 | 18,761 | 16,617,576 | ||||||||||
Altice France S.A. (France)(n) | 5.50% | 10/15/2029 | 6,838 | 5,185,968 | ||||||||||
Virgin Media Secured Finance PLC (United Kingdom)(n) | 4.50% | 08/15/2030 | 3,741 | 3,273,375 | ||||||||||
26,296,276 | ||||||||||||||
Chemicals & Plastics–0.65% | ||||||||||||||
INEOS Finance PLC (Luxembourg) (n) | 7.50% | 04/15/2029 | 3,695 | 3,672,276 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
17 | Invesco Senior Floating Rate Fund |
Interest Rate | Maturity Date | Principal (000)(a) | Value | |||||||||||
Chemicals & Plastics–(continued) | ||||||||||||||
INEOS Quattro Finance 2 PLC (United Kingdom)(n) | 9.63% | 03/15/2029 | $ | 2,457 | $ 2,587,701 | |||||||||
| ||||||||||||||
SK Invictus Intermediate II S.a.r.l.(n) | 5.00% | 10/30/2029 | 13,965 | 11,870,831 | ||||||||||
| ||||||||||||||
Windsor Holdings III LLC(n) | 8.50% | 06/15/2030 | 2,290 | 2,372,259 | ||||||||||
| ||||||||||||||
20,503,067 | ||||||||||||||
| ||||||||||||||
Food Products–0.01% | ||||||||||||||
Sigma Holdco B.V. (Netherlands) (n) | 7.88% | 05/15/2026 | 250 | 239,094 | ||||||||||
| ||||||||||||||
Health Care–0.06% | ||||||||||||||
Global Medical Response, Inc. (n) | 6.50% | 10/01/2025 | 2,186 | 1,920,762 | ||||||||||
| ||||||||||||||
Industrial Equipment–0.16% | ||||||||||||||
Arsenal AIC Parent LLC (n) | 8.00% | 10/01/2030 | 612 | 641,835 | ||||||||||
| ||||||||||||||
Chart Industries, Inc.(n) | 7.50% | 01/01/2030 | 669 | 690,917 | ||||||||||
| ||||||||||||||
EMRLD Borrower L.P./Emerald Co-Issuer, Inc.(n) | 6.63% | 12/15/2030 | 3,865 | 3,883,359 | ||||||||||
| ||||||||||||||
5,216,111 | ||||||||||||||
| ||||||||||||||
Insurance–0.22% | ||||||||||||||
Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer (n) | 7.00% | 01/15/2031 | 4,680 | 4,665,000 | ||||||||||
| ||||||||||||||
HUB International Ltd.(n) | 7.25% | 06/15/2030 | 2,419 | 2,469,238 | ||||||||||
| ||||||||||||||
7,134,238 | ||||||||||||||
| ||||||||||||||
Lodging & Casinos–0.16% | ||||||||||||||
Caesars Entertainment, Inc. (n) | 6.50% | 02/15/2032 | 1,317 | 1,327,678 | ||||||||||
| ||||||||||||||
Caesars Entertainment, Inc.(n) | 7.00% | 02/15/2030 | 1,548 | 1,587,086 | ||||||||||
| ||||||||||||||
Hilton Grand Vacations Borrower Escrow LLC/Hilton Grand Vacations Borrower Escrow, Inc.(n) | 6.63% | 01/15/2032 | 2,171 | 2,172,481 | ||||||||||
| ||||||||||||||
5,087,245 | ||||||||||||||
| ||||||||||||||
Retailers (except Food & Drug)–0.09% | ||||||||||||||
Evergreen Acqco 1 L.P./TVI, Inc. (n) | 9.75% | 04/26/2028 | 2,686 | 2,836,134 | ||||||||||
Telecommunications–0.25% | ||||||||||||||
Connect Finco S.a.r.l./Connect US Finco LLC (United Kingdom) (n) | 6.75% | 10/01/2026 | 4,556 | 4,473,570 | ||||||||||
| ||||||||||||||
Windstream Escrow LLC/Windstream Escrow Finance Corp.(n) | 7.75% | 08/15/2028 | 3,818 | 3,568,678 | ||||||||||
| ||||||||||||||
8,042,248 | ||||||||||||||
| ||||||||||||||
Total U.S. Dollar Denominated Bonds & Notes (Cost $119,169,697) | 114,831,447 | |||||||||||||
| ||||||||||||||
Shares | ||||||||||||||
Preferred Stocks–0.92% | ||||||||||||||
Oil & Gas–0.03% | ||||||||||||||
McDermott International Ltd., Pfd.(d) | 4,611 | 922,244 | ||||||||||||
| ||||||||||||||
Southcross Energy Partners L.P., Series A, Pfd. (Acquired 05/07/2019-10/31/2019; Cost $11,607,048)(d)(g)(k) | 11,609,067 | 68,493 | ||||||||||||
| ||||||||||||||
990,737 | ||||||||||||||
| ||||||||||||||
Surface Transport–0.89% | ||||||||||||||
Commercial Barge Line Co., Series B, Pfd.(d) | 142,554 | 16,610,392 | ||||||||||||
| ||||||||||||||
Commercial Barge Line Co., Series B, Pfd., Wts., expiring 04/27/2045(d)(k) | 100,115 | 11,665,400 | ||||||||||||
| ||||||||||||||
28,275,792 | ||||||||||||||
| ||||||||||||||
Total Preferred Stocks (Cost $17,377,252) | 29,266,529 | |||||||||||||
| ||||||||||||||
Interest Rate | Maturity Date | Principal Amount (000)(a) | ||||||||||||
Asset-Backed Securities–0.52% | ||||||||||||||
Structured Products–0.52% | ||||||||||||||
CIFC Funding Ltd., Series 2014-4RA, Class DR (Cayman Islands) (3 mo. Term SOFR + 7.26%) (n)(o) | 12.58% | 01/17/2035 | $ | 1,250 | 1,242,846 | |||||||||
| ||||||||||||||
Empower CLO Ltd., Series 2023-1A, Class E (Cayman Islands) (3 mo. Term SOFR + 8.22%)(n)(o) | 13.54% | 04/25/2036 | 3,500 | 3,564,894 | ||||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
18 | Invesco Senior Floating Rate Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Structured Products–(continued) | ||||||||||||||||
Empower CLO Ltd., Series 2023-2A, Class E (Cayman Islands) (3 mo. Term SOFR + 8.25%)(n)(o) | 13.56% | 07/15/2036 | $ 2,000 | $ | 2,023,144 | |||||||||||
| ||||||||||||||||
Jubilee CLO DAC, Series 2018-21A, Class ER (Ireland) (3 mo. EURIBOR + 6.07%)(m)(n)(o) | 10.01% | 04/15/2035 | EUR 979 | 1,036,537 | ||||||||||||
| ||||||||||||||||
Madison Park Funding XVIII Ltd., Series 2015-18A, Class ER (Cayman Islands) (3 mo. Term SOFR + 6.61%)(n)(o) | 11.93% | 10/21/2030 | 3,150 | 3,114,336 | ||||||||||||
| ||||||||||||||||
Madison Park Funding XXX Ltd., Series 2018-30A, Class E (Cayman Islands) (3 mo. Term SOFR + 5.21%)(n)(o) | 10.53% | 04/15/2029 | 3,275 | 3,232,035 | ||||||||||||
| ||||||||||||||||
Regatta XIV Funding Ltd., Series 2018-3A, Class E (Cayman Islands) (3 mo. Term SOFR + 6.21%)(n)(o) | 11.54% | 10/25/2031 | 2,200 | 2,137,366 | ||||||||||||
| ||||||||||||||||
Total Asset-Backed Securities (Cost $15,973,526) | 16,351,158 | |||||||||||||||
| ||||||||||||||||
Municipal Obligations–0.45% | ||||||||||||||||
Arizona–0.45% | ||||||||||||||||
Arizona (State of) Industrial Development Authority (NewLife Forest Restoration LLC) (Green Bonds), Series 2022 A, RB | 0.00% | 01/01/2028 | 18,355 | 14,210,508 | ||||||||||||
| ||||||||||||||||
Shares | ||||||||||||||||
Money Market Funds–2.06% | ||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class, 5.24%(k)(p) | 39,591,228 | 39,591,228 | ||||||||||||||
| ||||||||||||||||
Invesco Treasury Portfolio, Institutional Class, 5.23%(k)(p) | 25,930,704 | 25,930,704 | ||||||||||||||
| ||||||||||||||||
Total Money Market Funds (Cost $65,521,932) | 65,521,932 | |||||||||||||||
| ||||||||||||||||
TOTAL INVESTMENTS IN SECURITIES-101.29% (Cost $3,300,120,359) | 3,214,518,337 | |||||||||||||||
| ||||||||||||||||
OTHER ASSETS LESS LIABILITIES-(1.29)% | (40,817,565 | ) | ||||||||||||||
| ||||||||||||||||
NET ASSETS-100.00% | $ | 3,173,700,772 | ||||||||||||||
|
Investment Abbreviations:
CLO | - Collateralized Loan Obligation | |
EUR | - Euro | |
EURIBOR | - Euro Interbank Offered Rate | |
GBP | - British Pound Sterling | |
LIBOR | - London Interbank Offered Rate | |
LOC | - Letter of Credit | |
Pfd. | - Preferred | |
PIK | - Pay-in-Kind | |
RB | - Revenue Bonds | |
SEK | - Swedish Krona | |
SOFR | - Secured Overnight Financing Rate | |
SONIA | - Sterling Overnight Index Average | |
USD | - U.S. Dollar | |
Wts. | - Warrants |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
19 | Invesco Senior Floating Rate Fund |
Notes to Schedule of Investments:
(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 Secured Overnight Financing Rate (“SOFR”), 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. Interest rate will be determined at the time of funding. See Note 8. |
(f) | This variable rate interest will settle after February 29, 2024, at which time the interest rate will be determined. |
(g) | Restricted security. The aggregate value of these securities at February 29, 2024 was $320,171,709, which represented 10.09% of the Fund’s Net Assets. |
(h) | All or a portion of this security is Pay-in-Kind. Pay-in-Kind securities pay interest income in the form of securities. |
(i) | The borrower has filed for protection in federal bankruptcy court. |
(j) | Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The aggregate value of these securities at February 29, 2024 was $39,816,595, which represented 1.25% of the Fund’s Net Assets. |
(k) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended February 29, 2024. |
Value August 31, 2023 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value February 29, 2024 | Income | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ | 63,601,590 | $ | 237,585,354 | $ | (261,595,716) | $ | - | $ | - | $ | 39,591,228 | $ | 1,341,811 | ||||||||||||||
| ||||||||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 41,937,612 | 158,390,236 | (174,397,144) | - | - | 25,930,704 | 1,047,706 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Investments in Other Affiliates: | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
ACNR Holdings, Inc.* | 36,213,450 | - | (3,434,670) | (35,178,780) | 2,400,000 | - | - | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Commercial Barge Line Co., Wts., expiring 04/27/2045 | 1,674,495 | - | - | 2,506,161 | - | 4,180,656 | - | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Commercial Barge Line Co., Series B, Pfd., Wts., expiring 04/27/2045 | 5,506,325 | - | - | 6,159,075 | - | 11,665,400 | 62,572 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Commercial Barge Line Co., Series B, Wts., expiring 04/30/2045 | 187,716 | 62,572 | (246,847) | (125,144) | 184,275 | 62,572 | - | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Commercial Barge Line Co., Series A, Pfd., Wts., expiring 04/27/2045 | 2,568,926 | - | (2,732,902) | 526,020 | (362,044) | - | 51,242 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Commercial Barge Line Co., Series A, Wts., expiring 08/18/2030 | 181,044 | 51,242 | (229,167) | (181,044) | 177,925 | - | - | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Frontera Generation Holdings LLC | 21,458 | - | - | (5,180) | - | 16,278 | - | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Fusion Connect, Inc., Wts., expiring 01/14/2040 | 10,526 | - | - | 10,604,492 | (10,615,018) | - | - | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Harvey Gulf International Marine LLC | 4,326,262 | - | - | (906,176) | - | 3,420,086 | 1,195,568 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Internap Corp. | 3,145,880 | - | - | - | - | 3,145,880 | - | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Larchmont Resources LLC | 210,484 | - | - | 2,521,758 | (2,732,242) | - | - | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
My Alarm Center LLC, Class A | 39,252,693 | - | - | 445,685 | - | 39,698,378 | - | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
North American Lifting Holdings, Inc. | 4,754,351 | - | - | (3,034,974) | - | 1,719,377 | - | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
QuarterNorth Energy Holding, Inc. | 113,489,182 | - | - | 2,204,328 | - | 115,693,510 | - | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Southcross Energy Partners L.P., Series A, Pfd. | 103,321 | - | - | (34,828) | - | 68,493 | - | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Southcross Energy Partners L.P. | 40,809 | - | - | (40,809) | - | - | - | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Tribune Resources LLC | 7,990,398 | - | - | 3,050,880 | - | 11,041,278 | 2,382,592 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Total | $ | 325,216,522 | $ | 396,089,404 | $ | (442,636,446) | $ | (11,488,536) | $ | (10,947,104) | $ | 256,233,840 | $ | 6,081,491 | ||||||||||||||
|
* | As of August 31, 2023, this security was not considered as an affiliate of the Fund. |
(l) | Non-income producing security. |
(m) | Foreign denominated security. Principal amount is denominated in the currency indicated. |
(n) | 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 29, 2024 was $268,737,143, which represented 8.47% of the Fund’s Net Assets. |
(o) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 29, 2024. |
(p) | The rate shown is the 7-day SEC standardized yield as of February 29, 2024. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
20 | Invesco Senior Floating Rate Fund |
Open Forward Foreign Currency Contracts | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Settlement | Contract to | Unrealized Appreciation | ||||||||||||||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | Barclays Bank PLC | EUR | 89,383,488 | USD | 97,696,599 | $ | 1,000,953 | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | BNP Paribas S.A. | EUR | 516,511 | USD | 559,610 | 845 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | BNP Paribas S.A. | GBP | 13,228,731 | USD | 16,863,442 | 162,533 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | BNP Paribas S.A. | USD | 5,241 | SEK | 55,043 | 74 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
04/26/2024 | BNP Paribas S.A. | GBP | 12,223,731 | USD | 15,484,456 | 49,643 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
04/26/2024 | BNP Paribas S.A. | SEK | 64,696,458 | USD | 6,272,970 | 18,396 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | Canadian Imperial Bank of Commerce | EUR | 90,737,783 | USD | 98,993,107 | 832,375 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
04/26/2024 | Canadian Imperial Bank of Commerce | EUR | 92,520,917 | USD | 100,265,139 | 52,411 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | Morgan Stanley and Co. International PLC | GBP | 13,031,287 | USD | 16,617,204 | 165,562 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | Morgan Stanley and Co. International PLC | USD | 8,087,504 | EUR | 7,500,000 | 26,045 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
04/26/2024 | Morgan Stanley and Co. International PLC | EUR | 86,558,700 | USD | 93,922,586 | 167,750 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
04/26/2024 | Morgan Stanley and Co. International PLC | GBP | 12,117,653 | USD | 15,345,094 | 44,225 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | Royal Bank of Canada | EUR | 90,737,783 | USD | 99,147,361 | 986,629 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | Royal Bank of Canada | GBP | 13,228,731 | USD | 16,876,924 | 176,015 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | State Street Bank & Trust Co. | EUR | 1,423,526 | USD | 1,555,238 | 15,258 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | State Street Bank & Trust Co. | USD | 1,254,012 | GBP | 1,000,000 | 8,461 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
04/26/2024 | State Street Bank & Trust Co. | EUR | 87,870,195 | USD | 95,310,868 | 135,504 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
04/26/2024 | State Street Bank & Trust Co. | GBP | 12,698,530 | USD | 16,083,760 | 49,421 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Subtotal–Appreciation |
| 3,892,100 | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | BNP Paribas S.A. | SEK | 64,316,828 | USD | 6,198,965 | (11,364 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | BNP Paribas S.A. | USD | 15,481,515 | GBP | 12,223,731 | (49,391 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | BNP Paribas S.A. | USD | 6,223,133 | SEK | 64,261,785 | (18,119 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
04/26/2024 | BNP Paribas S.A. | USD | 2,715,914 | EUR | 2,500,000 | (8,075 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
04/26/2024 | BNP Paribas S.A. | USD | 3,165,900 | GBP | 2,500,000 | (9,168 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | Canadian Imperial Bank of Commerce | USD | 95,084,339 | EUR | 87,870,195 | (25,782 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | Morgan Stanley and Co. International PLC | USD | 97,054,543 | EUR | 89,558,700 | (169,352 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | Morgan Stanley and Co. International PLC | USD | 15,245,630 | GBP | 12,041,287 | (43,836 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | State Street Bank & Trust Co. | USD | 95,189,783 | EUR | 87,870,195 | (131,226 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
03/27/2024 | State Street Bank & Trust Co. | USD | 18,027,693 | GBP | 14,223,731 | (70,624 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Subtotal–Depreciation |
| (536,937 | ) | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Total Forward Foreign Currency Contracts |
| $ | 3,355,163 | |||||||||||||||||||||||||||
|
Abbreviations:
EUR - Euro
GBP - British Pound Sterling
SEK - Swedish Krona
USD - U.S. Dollar
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
21 | Invesco Senior Floating Rate Fund |
Portfolio Composition†
By credit quality, based on total investments
as of February 29, 2024
BBB- | 1.51% | |||
| ||||
BB+ | 2.87 | |||
| ||||
BB | 8.75 | |||
| ||||
BB- | 6.90 | |||
| ||||
B+ | 12.91 | |||
| ||||
B | 18.02 | |||
| ||||
B- | 15.96 | |||
| ||||
CCC+ | 5.84 | |||
| ||||
CCC | 3.42 | |||
| ||||
CCC- | 0.17 | |||
| ||||
CC | 0.34 | |||
| ||||
D | 0.83 | |||
| ||||
Non-Rated | 14.26 | |||
| ||||
Equity | 8.22 | |||
|
† | Source: S&P Global Ratings. A credit rating is an assessment provided by a nationally recognized statistical rating organization 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 S&P Global Ratings’ rating methodology, please visit spglobal.com and select “Understanding Credit Ratings” under About Ratings on the homepage. |
Excluding money market fund holdings, if any.
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
22 | Invesco Senior Floating Rate Fund |
Statement of Assets and Liabilities
February 29, 2024
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value | $ | 2,958,284,497 | ||
| ||||
Investments in affiliates, at value | 256,233,840 | |||
| ||||
Other investments: |
| |||
Unrealized appreciation on forward foreign currency contracts outstanding | 3,892,100 | |||
| ||||
Cash collateral – revolver | 434,910 | |||
| ||||
Cash | 23,194,851 | |||
| ||||
Restricted cash | 10,682,658 | |||
| ||||
Foreign currencies, at value (Cost $4,043,876) | 4,066,153 | |||
| ||||
Receivable for: | ||||
Investments sold | 54,033,830 | |||
| ||||
Fund shares sold | 1,295,763 | |||
| ||||
Dividends | 1,249,664 | |||
| ||||
Interest | 35,545,754 | |||
| ||||
Investments matured, at value | 8,307,615 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 351,169 | |||
| ||||
Other assets | 792,407 | |||
| ||||
Total assets | 3,358,365,211 | |||
| ||||
Liabilities: | ||||
Other investments: | ||||
Unrealized depreciation on forward foreign currency contracts outstanding | 536,937 | |||
| ||||
Payable for: | ||||
Investments purchased | 115,994,073 | |||
| ||||
Dividends | 7,637,911 | |||
| ||||
Proceeds received in connection with pending litigation | 10,682,658 | |||
| ||||
Fund shares reacquired | 2,294,721 | |||
| ||||
Accrued fees to affiliates | 1,109,562 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 2,206 | |||
| ||||
Accrued other operating expenses | 305,827 | |||
| ||||
Trustee deferred compensation and retirement plans | 351,169 | |||
| ||||
Unfunded loan commitments | 45,749,375 | |||
| ||||
Total liabilities | 184,664,439 | |||
| ||||
Net assets applicable to shares outstanding | $ | 3,173,700,772 | ||
|
Net assets consist of: | ||||
Shares of beneficial interest | $ | 5,870,506,324 | ||
| ||||
Distributable earnings (loss) | (2,696,805,552 | ) | ||
| ||||
$ | 3,173,700,772 | |||
| ||||
Net Assets: |
| |||
Class A | $ | 1,558,044,636 | ||
| ||||
Class C | $ | 185,297,959 | ||
| ||||
Class R | $ | 52,455,994 | ||
| ||||
Class Y | $ | 1,185,394,333 | ||
| ||||
Class R5 | $ | 19,815 | ||
| ||||
Class R6 | $ | 192,488,035 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 233,016,221 | |||
| ||||
Class C | 27,696,718 | |||
| ||||
Class R | 7,849,786 | |||
| ||||
Class Y | 177,613,512 | |||
| ||||
Class R5 | 2,962 | |||
| ||||
Class R6 | 28,845,600 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 6.69 | ||
| ||||
Maximum offering price per share | $ | 6.91 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 6.69 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 6.68 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 6.67 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 6.69 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 6.67 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
23 | Invesco Senior Floating Rate Fund |
Statement of Operations
For the six months ended February 29, 2024
(Unaudited)
Investment income: | ||||
Interest | $ | 146,065,328 | ||
| ||||
Dividends | 1,163,893 | |||
| ||||
Dividends from affiliates | 6,081,491 | |||
| ||||
Total investment income | 153,310,712 | |||
| ||||
Expenses: | ||||
Advisory fees | 9,673,014 | |||
| ||||
Administrative services fees | 229,776 | |||
| ||||
Custodian fees | 125,628 | |||
| ||||
Distribution fees: | ||||
Class A | 1,922,011 | |||
| ||||
Class C | 960,053 | |||
| ||||
Class R | 130,804 | |||
| ||||
Interest, facilities and maintenance fees | 816,489 | |||
| ||||
Transfer agent fees - A, C, R and Y | 1,791,519 | |||
| ||||
Transfer agent fees - R5 | 7 | |||
| ||||
Transfer agent fees - R6 | 28,601 | |||
| ||||
Trustees’ and officers’ fees and benefits | 25,409 | |||
| ||||
Registration and filing fees | 87,194 | |||
| ||||
Reports to shareholders | 342,626 | |||
| ||||
Professional services fees | 107,399 | |||
| ||||
Other | 25,747 | |||
| ||||
Total expenses | 16,266,277 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (366,469 | ) | ||
| ||||
Net expenses | 15,899,808 | |||
| ||||
Net investment income | 137,410,904 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | (22,373,580 | ) | ||
| ||||
Affiliated investment securities | (10,947,104 | ) | ||
| ||||
Foreign currencies | (184,621 | ) | ||
| ||||
Forward foreign currency contracts | 7,413,686 | |||
| ||||
(26,091,619 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | 65,793,389 | |||
| ||||
Affiliated investment securities | (11,488,536 | ) | ||
| ||||
Foreign currencies | 352,446 | |||
| ||||
Forward foreign currency contracts | (4,182,785 | ) | ||
| ||||
50,474,514 | ||||
| ||||
Net realized and unrealized gain | 24,382,895 | |||
| ||||
Net increase in net assets resulting from operations | $ | 161,793,799 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
24 | Invesco Senior Floating Rate Fund |
Statement of Changes in Net Assets
For the six months ended February 29, 2024 and the year ended August 31, 2023
(Unaudited)
February 29, 2024 | August 31, 2023 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 137,410,904 | $ | 301,283,952 | ||||
| ||||||||
Net realized gain (loss) | (26,091,619 | ) | (139,797,702 | ) | ||||
| ||||||||
Change in net unrealized appreciation | 50,474,514 | 110,439,973 | ||||||
| ||||||||
Net increase in net assets resulting from operations | 161,793,799 | 271,926,223 | ||||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (74,619,841 | ) | (151,908,076 | ) | ||||
| ||||||||
Class C | (8,543,635 | ) | (20,837,505 | ) | ||||
| ||||||||
Class R | (2,460,660 | ) | (5,142,756 | ) | ||||
| ||||||||
Class Y | (58,656,299 | ) | (130,241,833 | ) | ||||
| ||||||||
Class R5 | (977 | ) | (1,525 | ) | ||||
| ||||||||
Class R6 | (9,442,026 | ) | (19,317,154 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (153,723,438 | ) | (327,448,849 | ) | ||||
| ||||||||
Return of capital: | ||||||||
Class A | – | (5,790,853 | ) | |||||
| ||||||||
Class C | – | (794,342 | ) | |||||
| ||||||||
Class R | – | (196,046 | ) | |||||
| ||||||||
Class Y | – | (4,964,919 | ) | |||||
| ||||||||
Class R5 | – | (58 | ) | |||||
| ||||||||
Class R6 | – | (736,385 | ) | |||||
| ||||||||
Total return of capital | – | (12,482,603 | ) | |||||
| ||||||||
Total distributions | (153,723,438 | ) | (339,931,452 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (4,296,439 | ) | (51,670,541 | ) | ||||
| ||||||||
Class C | (15,627,852 | ) | (62,319,648 | ) | ||||
| ||||||||
Class R | (1,260,574 | ) | (1,057,435 | ) | ||||
| ||||||||
Class Y | 4,224,159 | (242,916,944 | ) | |||||
| ||||||||
Class R5 | – | 8,335 | ||||||
| ||||||||
Class R6 | (7,814,428 | ) | (42,684,802 | ) | ||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (24,775,134 | ) | (400,641,035 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (16,704,773 | ) | (468,646,264 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 3,190,405,545 | 3,659,051,809 | ||||||
| ||||||||
End of period | $ | 3,173,700,772 | $ | 3,190,405,545 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
25 | Invesco Senior Floating Rate Fund |
(Unaudited)
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 | Return of capital | 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(c) | 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 (d) | ||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | $6.67 | $0.29 | $0.05 | $0.34 | $(0.32 | ) | $ – | $(0.32 | ) | $6.69 | 5.21 | % | $1,558,045 | 1.07 | %(e) | 1.09 | %(e) | 1.02 | %(e) | 8.63 | %(e) | 22 | % | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 6.79 | 0.60 | (0.05 | ) | 0.55 | (0.65 | ) | (0.02 | ) | (0.67 | ) | 6.67 | 8.72 | 1,558,451 | 1.06 | 1.09 | 1.01 | 9.04 | 31 | |||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 7.10 | 0.35 | (0.32 | ) | 0.03 | (0.34 | ) | – | (0.34 | ) | 6.79 | 0.40 | 1,639,394 | 1.04 | 1.04 | 1.00 | 5.05 | 68 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 6.61 | 0.31 | 0.49 | 0.80 | (0.31 | ) | – | (0.31 | ) | 7.10 | 12.35 | 1,666,116 | 1.07 | 1.10 | 1.00 | 4.56 | 86 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 7.63 | 0.32 | (1.02 | ) | (0.70 | ) | (0.32 | ) | – | (0.32 | ) | 6.61 | (9.23 | ) | 1,586,129 | 1.13 | 1.16 | 1.02 | 4.59 | 53 | ||||||||||||||||||||||||||||||||||||||||
One month ended 08/31/19 | 7.77 | 0.03 | (0.14 | ) | (0.11 | ) | (0.03 | ) | – | (0.03 | ) | 7.63 | (1.37 | ) | 2,962,352 | 1.11 | (e) | 1.12 | (e) | 1.01 | (e) | 5.25 | (e) | 1 | ||||||||||||||||||||||||||||||||||||
Year ended 07/31/19 | 8.13 | 0.41 | (0.37 | ) | 0.04 | (0.40 | ) | – | (0.40 | ) | 7.77 | 0.58 | 3,104,336 | 1.10 | 1.10 | 1.00 | 5.12 | 25 | ||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 6.67 | 0.26 | 0.06 | 0.32 | (0.30 | ) | – | (0.30 | ) | 6.69 | 4.82 | 185,298 | 1.82 | (e) | 1.84 | (e) | 1.77 | (e) | 7.88 | (e) | 22 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 6.79 | 0.55 | (0.05 | ) | 0.50 | (0.60 | ) | (0.02 | ) | (0.62 | ) | 6.67 | 7.91 | 200,489 | 1.81 | 1.84 | 1.76 | 8.29 | 31 | |||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 7.11 | 0.30 | (0.33 | ) | (0.03 | ) | (0.29 | ) | – | (0.29 | ) | 6.79 | (0.49 | ) | 268,127 | 1.79 | 1.79 | 1.75 | 4.30 | 68 | ||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 6.62 | 0.26 | 0.49 | 0.75 | (0.26 | ) | – | (0.26 | ) | 7.11 | 11.50 | 398,409 | 1.82 | 1.85 | 1.75 | 3.81 | 86 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 7.64 | 0.27 | (1.02 | ) | (0.75 | ) | (0.27 | ) | – | (0.27 | ) | 6.62 | (9.90 | ) | 733,122 | 1.88 | 1.91 | 1.77 | 3.84 | 53 | ||||||||||||||||||||||||||||||||||||||||
One month ended 08/31/19 | 7.78 | 0.03 | (0.14 | ) | (0.11 | ) | (0.03 | ) | – | (0.03 | ) | 7.64 | (1.43 | ) | 1,640,440 | 1.86 | (e) | 1.87 | (e) | 1.76 | (e) | 4.50 | (e) | 1 | ||||||||||||||||||||||||||||||||||||
Year ended 07/31/19 | 8.14 | 0.35 | (0.36 | ) | (0.01 | ) | (0.35 | ) | – | (0.35 | ) | 7.78 | (0.17 | ) | 1,734,118 | 1.85 | 1.85 | 1.75 | 4.37 | 25 | ||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 6.66 | 0.28 | 0.05 | 0.33 | (0.31 | ) | – | (0.31 | ) | 6.68 | 5.08 | 52,456 | 1.32 | (e) | 1.34 | (e) | 1.27 | (e) | 8.38 | (e) | 22 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 6.79 | 0.58 | (0.05 | ) | 0.53 | (0.64 | ) | (0.02 | ) | (0.66 | ) | 6.66 | 8.29 | 53,578 | 1.31 | 1.34 | 1.26 | 8.79 | 31 | |||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 7.10 | 0.34 | (0.33 | ) | 0.01 | (0.32 | ) | – | (0.32 | ) | 6.79 | 0.14 | 55,615 | 1.29 | 1.29 | 1.25 | 4.80 | 68 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 6.61 | 0.30 | 0.48 | 0.78 | (0.29 | ) | – | (0.29 | ) | 7.10 | 12.07 | 60,060 | 1.32 | 1.35 | 1.25 | 4.31 | 86 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 7.62 | 0.31 | (1.01 | ) | (0.70 | ) | (0.31 | ) | – | (0.31 | ) | 6.61 | (9.34 | ) | 59,212 | 1.38 | 1.41 | 1.27 | 4.34 | 53 | ||||||||||||||||||||||||||||||||||||||||
One month ended 08/31/19 | 7.76 | 0.03 | (0.14 | ) | (0.11 | ) | (0.03 | ) | – | (0.03 | ) | 7.62 | (1.39 | ) | 87,586 | 1.36 | (e) | 1.37 | (e) | 1.26 | (e) | 5.00 | (e) | 1 | ||||||||||||||||||||||||||||||||||||
Year ended 07/31/19 | 8.13 | 0.39 | (0.38 | ) | 0.01 | (0.38 | ) | – | (0.38 | ) | 7.76 | 0.20 | 91,419 | 1.35 | 1.35 | 1.25 | 4.87 | 25 | ||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 6.66 | 0.29 | 0.05 | 0.34 | (0.33 | ) | – | (0.33 | ) | 6.67 | 5.35 | 1,185,394 | 0.82 | (e) | 0.84 | (e) | 0.77 | (e) | 8.88 | (e) | 22 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 6.78 | 0.61 | (0.04 | ) | 0.57 | (0.66 | ) | (0.03 | ) | (0.69 | ) | 6.66 | 8.99 | 1,178,319 | 0.81 | 0.84 | 0.76 | 9.29 | 31 | |||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 7.09 | 0.37 | (0.33 | ) | 0.04 | (0.35 | ) | – | (0.35 | ) | 6.78 | 0.63 | 1,450,652 | 0.79 | 0.79 | 0.75 | 5.30 | 68 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 6.60 | 0.33 | 0.49 | 0.82 | (0.33 | ) | – | (0.33 | ) | 7.09 | 12.65 | 1,323,124 | 0.82 | 0.85 | 0.75 | 4.81 | 86 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 7.61 | 0.35 | (1.02 | ) | (0.67 | ) | (0.34 | ) | – | (0.34 | ) | 6.60 | (8.90 | ) | 1,571,552 | 0.88 | 0.91 | 0.77 | 4.84 | 53 | ||||||||||||||||||||||||||||||||||||||||
One month ended 08/31/19 | 7.75 | 0.04 | (0.14 | ) | (0.10 | ) | (0.04 | ) | – | (0.04 | ) | 7.61 | (1.35 | ) | 4,734,607 | 0.86 | (e) | 0.87 | (e) | 0.76 | (e) | 5.50 | (e) | 1 | ||||||||||||||||||||||||||||||||||||
Year ended 07/31/19 | 8.11 | 0.43 | (0.37 | ) | 0.06 | (0.42 | ) | – | (0.42 | ) | 7.75 | 0.82 | 5,266,308 | 0.85 | 0.85 | 0.75 | 5.37 | 25 | ||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 6.67 | 0.30 | 0.05 | 0.35 | (0.33 | ) | – | (0.33 | ) | 6.69 | 5.36 | 20 | 0.79 | (e) | 0.79 | (e) | 0.74 | (e) | 8.91 | (e) | 22 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 6.80 | 0.62 | (0.06 | ) | 0.56 | (0.66 | ) | (0.03 | ) | (0.69 | ) | 6.67 | 8.89 | 20 | 0.76 | 0.76 | 0.71 | 9.34 | 31 | |||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 7.11 | 0.38 | (0.33 | ) | 0.05 | (0.36 | ) | – | (0.36 | ) | 6.80 | 0.74 | 12 | 0.70 | 0.70 | 0.66 | 5.39 | 68 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 6.62 | 0.34 | 0.48 | 0.82 | (0.33 | ) | – | (0.33 | ) | 7.11 | 12.65 | 12 | 0.73 | 0.74 | 0.66 | 4.90 | 86 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 7.63 | 0.34 | (1.00 | ) | (0.66 | ) | (0.35 | ) | – | (0.35 | ) | 6.62 | (8.80 | ) | 8 | 0.80 | 0.80 | 0.69 | 4.92 | 53 | ||||||||||||||||||||||||||||||||||||||||
One month ended 08/31/19 | 7.77 | 0.04 | (0.14 | ) | (0.10 | ) | (0.04 | ) | – | (0.04 | ) | 7.63 | (1.34 | ) | 10 | 0.80 | (e) | 0.82 | (e) | 0.71 | (e) | 5.55 | (e) | 1 | ||||||||||||||||||||||||||||||||||||
Period ended 07/31/19(f) | 7.87 | 0.08 | (0.10 | ) | (0.02 | ) | (0.08 | ) | – | (0.08 | ) | 7.77 | (0.28 | ) | 10 | 0.77 | (e) | 0.77 | (e) | 0.67 | (e) | 5.45 | (e) | 25 | ||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 6.66 | 0.30 | 0.04 | 0.34 | (0.33 | ) | – | (0.33 | ) | 6.67 | 5.39 | 192,488 | 0.75 | (e) | 0.75 | (e) | 0.70 | (e) | 8.95 | (e) | 22 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 6.77 | 0.62 | (0.04 | ) | 0.58 | (0.66 | ) | (0.03 | ) | (0.69 | ) | 6.66 | 9.22 | 199,550 | 0.74 | 0.74 | 0.69 | 9.36 | 31 | |||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 7.08 | 0.37 | (0.32 | ) | 0.05 | (0.36 | ) | – | (0.36 | ) | 6.77 | 0.72 | 245,252 | 0.70 | 0.70 | 0.66 | 5.39 | 68 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 6.60 | 0.34 | 0.47 | 0.81 | (0.33 | ) | – | (0.33 | ) | 7.08 | 12.60 | 196,230 | 0.69 | 0.74 | 0.62 | 4.94 | 86 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 7.61 | 0.36 | (1.02 | ) | (0.66 | ) | (0.35 | ) | – | (0.35 | ) | 6.60 | (8.80 | ) | 194,825 | 0.77 | 0.79 | 0.66 | 4.95 | 53 | ||||||||||||||||||||||||||||||||||||||||
One month ended 08/31/19 | 7.75 | 0.04 | (0.14 | ) | (0.10 | ) | (0.04 | ) | – | (0.04 | ) | 7.61 | (1.34 | ) | 997,162 | 0.75 | (e) | 0.76 | (e) | 0.65 | (e) | 5.61 | (e) | 1 | ||||||||||||||||||||||||||||||||||||
Year ended 07/31/19 | 8.11 | 0.43 | (0.36 | ) | 0.07 | (0.43 | ) | – | (0.43 | ) | 7.75 | 0.93 | 1,056,032 | 0.74 | 0.74 | 0.64 | 5.48 | 25 |
(a) | Calculated using average shares outstanding. |
(b) | Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
(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 1.12% and 1.10% for the one month ended August 31, 2019 and the year ended July 31, 2019, respectively. |
(d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year ended ended August 31, 2021, the portfolio turnover calculation excludes the value of securities purchased of $42,745,724 in connection with the acquisition of Invesco Senior Floating Rate Plus Fund into the Fund. |
(e) | Annualized. |
(f) | Commencement date after the close of business on May 24, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
26 | Invesco Senior Floating Rate Fund |
February 29, 2024
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Senior Floating Rate Fund (the “Fund”) is a series portfolio of AIM Counselor Series Trust (Invesco Counselor Series Trust) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company 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 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 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. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market (but not securities reported on the NASDAQ Stock Exchange) are valued based on the prices furnished by independent pricing services, in which case the securities 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 daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices 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, and their value may be adjusted accordingly. 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 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.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). 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 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.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
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 mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
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.
27 | Invesco Senior Floating Rate 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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally 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.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
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 an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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. Facility fees received may be amortized over the life of the loan. 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.
The Fund is a party to legal proceedings in connection with certain of its portfolio investments, in which it may be plaintiff or defendant. The outcome and financial effect, if any, of these legal proceedings cannot be determined at this time because the proceedings are ongoing and have not been adjudicated. The Fund received a cash payment of $10,682,658 from the issuer of one of its portfolio investments (Robertshaw US Holding Corp.), the status of which is subject to such an ongoing litigation. Consequently, the Fund continues to recognize its investments in the various Robertshaw Term Loans in the Schedule of Investments and has recorded the cash received as restricted cash and an offsetting liability proceeds received in connection with pending litigation for such cash proceeds received in the Statement of Assets and Liabilities.
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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, 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 based on relative net assets of Class R5 and Class R6. 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 the relative value of settled shares. |
G. | Interest, Facilities and Maintenance Fees – Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees, administrative expenses, negative or overdrawn balances on margin accounts and other expenses associated with establishing and maintaining a line of credit. |
H. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
I. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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 |
28 | Invesco Senior Floating Rate Fund |
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. | Securities Purchased on a When-Issued and Delayed Delivery Basis – The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date. |
K. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at 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.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. 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.
L. | 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 exchange of the two currencies on the settlement date, 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).
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 for hedging 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.
M. | 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. |
N. | 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. |
O. | LIBOR Transition Risk – The Fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations. LIBOR was intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured basis. The UK Financial Conduct Authority (“FCA”), the regulator that oversees LIBOR, announced that the majority of LIBOR rates would cease to be published or would no longer be representative on January 1, 2022. The publication of most LIBOR rates ceased at the end of 2021, and the remaining USD LIBOR rates ceased to be published after June 2023. The FCA will permit the use of synthetic USD LIBOR rates for non-U.S. contracts for a limited period of time after June 30, 2023, but any such rates would be considered non-representative of the underlying market. |
There remains uncertainty and risks relating to the continuing LIBOR transition and its effects on the Fund and the instruments in which the Fund invests. There can be no assurance that the composition or characteristics of any alternative reference rates (“ARRs”) or financial instruments in which the Fund invests that utilize ARRs will be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments when USD LIBOR is ultimately discontinued. On December 16, 2022, the Federal Reserve Board adopted regulations implementing the Adjustable Interest Rate Act. The regulations provide a statutory fallback mechanism to replace LIBOR, by identifying benchmark rates based on the Secured Overnight Financing Rate (“SOFR”) that replaced LIBOR in certain financial contracts after June 30, 2023. These regulations apply only to contracts governed by U.S. law, among other limitations. The Fund may have instruments linked to other interbank offered rates that may also cease to be published in the future. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held by the Fund could result in losses to the Fund.
29 | Invesco Senior Floating Rate Fund |
P. | 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. |
Q. | 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. or non-U.S. companies (the “Borrowers”). The investment of the Fund in a corporate loan may take the form of participation interests or assignments. If the Fund purchases a participation interest from a syndicate of lenders (“Lenders”) or one of the participants in the syndicate (“Participant”), one or more of which administers the loan on behalf of all the Lenders (the “Agent Bank”), the Fund would be required to rely on the Lender that sold the participation interest not only for the enforcement of the Fund’s rights against the Borrower but also for the receipt and processing of payments due to the Fund under the corporate loans. As such, the Fund is subject to the credit risk of the Borrower and the Participant. Lenders and Participants interposed between the Fund and a Borrower, together with Agent Banks, are referred to as “Intermediate Participants”.
Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s operations, universe of potential investment options, and return potential.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. 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 $200 million | 0.750% | |
Next $200 million | 0.720% | |
Next $200 million | 0.690% | |
Next $200 million | 0.660% | |
Next $4.2 billion | 0.600% | |
Next $5 billion | 0.580% | |
Next $10 billion | 0.560% | |
Over $20 billion | 0.550% |
* | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the six months ended February 29, 2024, the effective advisory fee rate incurred by the Fund was 0.61%.
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. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (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). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has contractually agreed, through at least December 31, 2024, 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 1.02%, 1.77%, 1.27%, 0.77%, 0.77% and 0.77%, 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 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, 2024. 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.
Further, the Adviser has contractually agreed, through at least June 30, 2025, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended February 29, 2024, the Adviser waived advisory fees of $51,297 and reimbursed class level expenses of $143,123, $18,949, $5,160, $116,761, $0 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 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Fund, SSB also serves as the Fund’s custodian.
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 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, 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
30 | Invesco Senior Floating Rate Fund |
Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 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 Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 29, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 29, 2024, IDI advised the Fund that IDI retained $48,191 in front-end sales commissions from the sale of Class A shares and $11,162 and $2,759 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. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of February 29, 2024. 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 | ||||||||||||||||
| ||||||||||||||||
Variable Rate Senior Loan Interests | $ | – | $ | 2,407,708,469 | $ | 201,399,814 | $ | 2,609,108,283 | ||||||||
| ||||||||||||||||
Common Stocks & Other Equity Interests | 2,418,440 | 187,473,841 | 51,775,499 | 241,667,780 | ||||||||||||
| ||||||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes | – | 123,344,030 | 216,670 | 123,560,700 | ||||||||||||
| ||||||||||||||||
U.S. Dollar Denominated Bonds & Notes | – | 114,831,447 | – | 114,831,447 | ||||||||||||
| ||||||||||||||||
Preferred Stocks | – | – | 29,266,529 | 29,266,529 | ||||||||||||
| ||||||||||||||||
Asset-Backed Securities | – | 16,351,158 | – | 16,351,158 | ||||||||||||
| ||||||||||||||||
Municipal Obligations | – | – | 14,210,508 | 14,210,508 | ||||||||||||
| ||||||||||||||||
Money Market Funds | 65,521,932 | – | – | 65,521,932 | ||||||||||||
| ||||||||||||||||
Total Investments in Securities | 67,940,372 | 2,849,708,945 | 296,869,020 | 3,214,518,337 | ||||||||||||
| ||||||||||||||||
Other Investments - Assets* | ||||||||||||||||
| ||||||||||||||||
Investments Matured | – | – | 8,307,615 | 8,307,615 | ||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | 3,892,100 | – | 3,892,100 | ||||||||||||
| ||||||||||||||||
– | 3,892,100 | 8,307,615 | 12,199,715 | |||||||||||||
| ||||||||||||||||
Other Investments - Liabilities* | ||||||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | (536,937 | ) | – | (536,937 | ) | ||||||||||
| ||||||||||||||||
Total Other Investments | – | 3,355,163 | 8,307,615 | 11,662,778 | ||||||||||||
| ||||||||||||||||
Total Investments | $ | 67,940,372 | $ | 2,853,064,108 | $ | 305,176,635 | $ | 3,226,181,115 | ||||||||
|
* | Forward foreign currency contracts are valued at unrealized appreciation (depreciation). Investments matured are shown at value. |
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.
31 | Invesco Senior Floating Rate Fund |
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) during the six months ended February 29, 2024:
Value 08/31/23 | Purchases at Cost | Proceeds from Sales | Accrued Discounts/ Premiums | Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Transfers Level 3* | Transfers out of Level 3* | Value 02/29/24 | ||||||||||||||||||||||||||||
Variable Rate Senior Loan Interests | $ | 191,172,422 | $ | 106,489,960 | $ | (61,845,760 | ) | $ | 1,751,374 | $ | (2,567,870 | ) | $ | (9,010,454 | ) | $ | 35,667,650 | $ | (60,257,508 | ) | $ | 201,399,814 | ||||||||||||||
Common Stocks & Other Equity Interests | 174,610,960 | 3,117,734 | (3,913,054 | ) | – | (13,039,309 | ) | 18,411,423 | 1,736,762 | (129,149,019 | ) | 51,775,499 | ||||||||||||||||||||||||
Preferred Stocks | 2,839,826 | – | – | – | – | 13,079,908 | 13,346,795 | – | 29,266,529 | |||||||||||||||||||||||||||
Municipal Obligations | – | 1,280,588 | – | 110,750 | – | (1,651,054 | ) | 14,470,224 | – | 14,210,508 | ||||||||||||||||||||||||||
Investments Matured | 4,280,746 | 4,695,734 | (668,865 | ) | – | – | – | – | – | 8,307,615 | ||||||||||||||||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes | 416,703 | – | (440,444 | ) | 14,910 | (13,079 | ) | 238,580 | – | – | 216,670 | |||||||||||||||||||||||||
Total | $ | 373,320,657 | $ | 115,584,016 | $ | (66,868,123 | ) | $ | 1,877,034 | $ | (15,620,258 | ) | $ | 21,068,403 | $ | 65,221,431 | $ | (189,406,527 | ) | $ | 305,176,635 |
*Transfers | into and out of Level 3 are due to increases or decreases in market activity impacting the available market inputs to determine the price. |
Securities determined to be Level 3 at the end of the reporting period were valued primarily by utilizing evaluated prices from a third-party vendor pricing service. A significant change in third-party pricing information could result in a lower or higher value in Level 3 investments.
The following table summarizes the valuation techniques and significant unobservable inputs used in determining fair value measurements for those investments classified as level 3 at period end:
Fair Value at 02/29/24 | Valuation Technique | Unobservable Inputs | Range of Unobservable Inputs | Unobservable Input Used | ||||||||
My Alarm Center LLC, Class A | $39,698,378 | Valuation Service | N/A | N/A | N/A | (a) |
(a) | Securities classified as Level 3 whose unadjusted values were provided by a pricing service and for which such inputs are unobservable. The valuation is based on an enterprise value approach that utilizes a multiple of the last twelve months’ earnings before interest, taxes, depreciation and amortization of comparable public companies. The Adviser reviews the valuation reports provided by the valuation service on an on-going basis and monitors such investments for additional information or the occurrence of a market event which would warrant a re-evaluation of the security’s fair valuation. |
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.
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 29, 2024:
Value | ||||
Currency | ||||
Derivative Assets | Risk | |||
| ||||
Unrealized appreciation on forward foreign currency contracts outstanding | $ | 3,892,100 | ||
| ||||
Derivatives not subject to master netting agreements | – | |||
| ||||
Total Derivative Assets subject to master netting agreements | $ | 3,892,100 | ||
| ||||
Value | ||||
Currency | ||||
Derivative Liabilities | Risk | |||
| ||||
Unrealized depreciation on forward foreign currency contracts outstanding | $ | (536,937 | ) | |
| ||||
Derivatives not subject to master netting agreements | – | |||
| ||||
Total Derivative Liabilities subject to master netting agreements | $ | (536,937 | ) | |
|
32 | Invesco Senior Floating Rate Fund |
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 29, 2024.
Financial Derivative Assets | Financial Derivative Liabilities | Collateral (Received)/Pledged | ||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Forward Foreign Currency Contracts | Net Value of Derivatives | Non-Cash | Cash | Net Amount | ||||||||||||||||||||||||
Barclays Bank PLC | $1,000,953 | $ – | $1,000,953 | $– | $– | $1,000,953 | ||||||||||||||||||||||||
BNP Paribas S.A. | 231,491 | (96,117 | ) | 135,374 | – | – | 135,374 | |||||||||||||||||||||||
Canadian Imperial Bank of Commerce | 884,786 | (25,782 | ) | 859,004 | – | – | 859,004 | |||||||||||||||||||||||
Morgan Stanley and Co. International PLC | 403,582 | (213,188 | ) | 190,394 | – | – | 190,394 | |||||||||||||||||||||||
Royal Bank of Canada | 1,162,644 | – | 1,162,644 | – | – | 1,162,644 | ||||||||||||||||||||||||
State Street Bank & Trust Co. | 208,644 | (201,850 | ) | 6,794 | – | – | 6,794 | |||||||||||||||||||||||
Total | $3,892,100 | $(536,937 | ) | $3,355,163 | $– | $– | $3,355,163 |
Effect of Derivative Investments for the six months ended February 29, 2024
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 | $ | 7,413,686 | |||
Change in Net Unrealized Appreciation (Depreciation): | |||||
Forward foreign currency contracts | (4,182,785 | ) | |||
Total | $ | 3,230,901 | |||
The table below summarizes the average notional value of derivatives held during the period. | |||||
Forward Foreign Currency | |||||
Average notional value | $ | 1,057,983,768 |
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 29, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $31,179.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances and Borrowings
Effective February 16, 2024, the Fund has entered into a credit agreement, which enables the Fund to participate with another Invesco Fund in a committed secured borrowing facility that permits borrowings up to $1,027,500,000, collectively by certain Invesco Funds, and which will expire on February 14, 2025. Prior to February 16, 2024, the credit agreement permitted borrowings up to $1.07 billion. The credit agreement is secured by the assets of the Fund. The Fund is subject to certain covenants relating to the credit agreement. Failure to comply with these restrictions could cause the acceleration of the repayment of the amount outstanding under the credit agreement. During the six months ended February 29, 2024, the Fund did not borrow under this agreement.
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 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.
33 | Invesco Senior Floating Rate Fund |
NOTE 8–Unfunded Loan Commitments
Pursuant to the terms of certain Senior Loan agreements, the Fund held the following unfunded loan commitments as of February 29, 2024. The Fund intends to reserve against such contingent obligations by designating cash, liquid securities and liquid Senior Loans as a reserve. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.
Borrower | Type | Unfunded Loan Commitment | Unrealized Appreciation (Depreciation) | |||||||
| ||||||||||
AI Aqua Merger Sub, Inc. | Delayed Draw Term Loan | $ | 229,153 | $ | 502 | |||||
| ||||||||||
Areas (Telfer Inv/Financiere Pax) | Term Loan B | 1,235,786 | (33,314 | ) | ||||||
| ||||||||||
Constant Contact Inc. | Delayed Draw Term Loan | 2,961,741 | (83,513 | ) | ||||||
| ||||||||||
DexKo Global, Inc. | Revolver Loan | 3,864,753 | 267,887 | |||||||
| ||||||||||
Groundworks LLC | Delayed Draw Term Loan | 149,882 | 1,729 | |||||||
| ||||||||||
Groundworks LLC | Revolver Loan | 258,416 | 6,407 | |||||||
| ||||||||||
Kantar (Summer BC Bidco/KANGRP) | Revolver Loan | 8,478,024 | (268,662 | ) | ||||||
| ||||||||||
MB2 Dental Solutions LLC | Delayed Draw Term Loan | 1,645,172 | 0 | |||||||
| ||||||||||
MB2 Dental Solutions LLC | Delayed Draw Term Loan | 987,103 | 0 | |||||||
| ||||||||||
MB2 Dental Solutions LLC | Revolver Loan | 325,744 | 0 | |||||||
| ||||||||||
McDermott International Ltd. | LOC | 15,187,691 | (5,315,692 | ) | ||||||
| ||||||||||
McDermott International Ltd. | LOC | 3,887,847 | (563,738 | ) | ||||||
| ||||||||||
Parques Reunidos (Piolin Bidco S.A.U.) | Revolver Loan | 32,390 | 11,604 | |||||||
| ||||||||||
Robertshaw US Holding Corp. | Revolver Loan | 5,500,119 | (3,436 | ) | ||||||
| ||||||||||
Tank Holding Corp. | Revolver Loan | 621,139 | 124,560 | |||||||
| ||||||||||
V Global Holdings LLC (aka Vertellus) | Revolver Loan | 384,415 | (12,053 | ) | ||||||
| ||||||||||
$ | 45,749,375 | $ | (5,867,719 | ) | ||||||
|
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 fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2023, as follows:
Capital Loss Carryforward* | ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
Not subject to expiration | $ | 189,324,999 | $ | 2,372,983,683 | $ | 2,562,308,682 |
* | Capital loss carryforward 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 10–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 29, 2024 was $740,935,742 and $699,398,747, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
| ||||
Aggregate unrealized appreciation of investments | $ | 194,339,192 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (286,237,650 | ) | ||
| ||||
Net unrealized appreciation (depreciation) of investments | $ | (91,898,458 | ) | |
|
Cost of investments for tax purposes is $3,318,079,573.
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.
34 | Invesco Senior Floating Rate Fund |
At the six months ended February 29, 2024, 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 | ||||||||
Bank of America, N.A. | $ | 3,231,550 | $ 2,989,184 | |||||||
Barclays Bank PLC | 19,075,538 | 13,423,924 | ||||||||
BMO Harris Bank, N.A. | 4,166,850 | 4,140,161 | ||||||||
Citibank, N.A. | 3,134,424 | 3,009,047 | ||||||||
Credit Agricole CIB | 1,582,065 | 1,509,401 | ||||||||
JPMorgan Europe Ltd. | 2,559,004 | 1,104,663 |
NOTE 12–Dividends
The Fund declared the following monthly dividends from net investment income subsequent to February 29, 2024:
Amount Per Share | ||||
Share Class | Record Date | Payable March 29, 2024 | ||
Class A | Daily | $0.0517 | ||
Class C | Daily | $0.0475 | ||
Class R | Daily | $0.0503 | ||
Class Y | Daily | $0.0530 | ||
Class R5 | Daily | $0.0535 | ||
Class R6 | Daily | $0.0535 |
NOTE 13–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
February 29, 2024(a) | August 31, 2023 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 18,111,838 | $ | 120,704,930 | 27,920,339 | $ | 185,092,497 | ||||||||||
| ||||||||||||||||
Class C | 2,753,055 | 18,344,473 | 4,680,280 | 31,030,712 | ||||||||||||
| ||||||||||||||||
Class R | 472,965 | 3,148,991 | 952,149 | 6,279,368 | ||||||||||||
| ||||||||||||||||
Class Y | 35,008,282 | 232,846,943 | 64,350,516 | 425,812,240 | ||||||||||||
| ||||||||||||||||
Class R5 | - | - | 1,256 | 8,335 | ||||||||||||
| ||||||||||||||||
Class R6 | 5,271,058 | 34,936,622 | 24,908,484 | 163,305,758 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 8,066,302 | 53,745,363 | 17,202,634 | 113,352,430 | ||||||||||||
| ||||||||||||||||
Class C | 982,743 | 6,553,004 | 2,467,632 | 16,269,590 | ||||||||||||
| ||||||||||||||||
Class R | 355,743 | 2,369,784 | 783,138 | 5,156,425 | ||||||||||||
| ||||||||||||||||
Class Y | 5,639,212 | 37,506,432 | 12,876,307 | 84,671,387 | ||||||||||||
| ||||||||||||||||
Class R6 | 887,451 | 5,904,548 | 1,801,876 | 11,852,848 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 2,682,563 | 17,861,769 | 7,041,482 | 46,519,301 | ||||||||||||
| ||||||||||||||||
Class C | (2,681,881 | ) | (17,861,769 | ) | (7,036,400 | ) | (46,519,301 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (29,515,119 | ) | (196,608,501 | ) | (59,950,481 | ) | (396,634,769 | ) | ||||||||
| ||||||||||||||||
Class C | (3,400,595 | ) | (22,663,560 | ) | (9,533,796 | ) | (63,100,649 | ) | ||||||||
| ||||||||||||||||
Class R | (1,017,597 | ) | (6,779,349 | ) | (1,893,042 | ) | (12,493,228 | ) | ||||||||
| ||||||||||||||||
Class Y | (40,047,898 | ) | (266,129,216 | ) | (114,314,162 | ) | (753,400,571 | ) | ||||||||
| ||||||||||||||||
Class R6 | (7,292,229 | ) | (48,655,598 | ) | (32,934,273 | ) | (217,843,408 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (3,724,107 | ) | $ | (24,775,134 | ) | (60,676,061 | ) | $ | (400,641,035 | ) | ||||||
|
(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. |
35 | Invesco Senior 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, 2023 through February 29, 2024.
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 | Ending | Expenses | Ending | Expenses | Annualized | |||||||
Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||
(09/01/23) | (02/29/24)1 | Period2 | (02/29/24) | Period2 | Ratio | |||||||
Class A | $1,000.00 | $1,052.10 | $5.46 | $1,019.54 | $5.37 | 1.07% | ||||||
Class C | 1,000.00 | 1,048.20 | 9.27 | 1,015.81 | 9.12 | 1.82 | ||||||
Class R | 1,000.00 | 1,050.80 | 6.73 | 1,018.30 | 6.62 | 1.32 | ||||||
Class Y | 1,000.00 | 1,053.40 | 4.19 | 1,020.79 | 4.12 | 0.82 | ||||||
Class R5 | 1,000.00 | 1,053.60 | 4.03 | 1,020.93 | 3.97 | 0.79 | ||||||
Class R6 | 1,000.00 | 1,053.90 | 3.83 | 1,021.13 | 3.77 | 0.75 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2023 through February 29, 2024, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
36 | Invesco Senior Floating Rate Fund |
A Special Joint Meeting (“Meeting”) of Shareholders of AIM Counselor Series Trust (Invesco Counselor Series Trust), a Delaware statutory trust (“Trust”), was held on January 16, 2024. The Meeting was held for the following purpose:
(1) | Elect 14 trustees to the Board of Trustees of the Trust, each of whom will serve until his or her successor is duly elected and qualified. |
The results of the voting on the above matter were as follows:
Matter | Votes For | Votes Against/Withheld | ||||||||||
(1)* | Beth Ann Brown | 3,109,848,785.61 | 65,706,470.15 | |||||||||
Carol Deckbar | 3,109,186,378.07 | 66,368,877.70 | ||||||||||
Cynthia Hostetler | 3,108,148,647.37 | 67,406,608.40 | ||||||||||
Dr. Eli Jones | 3,106,962,123.35 | 68,593,132.42 | ||||||||||
Elizabeth Krentzman | 3,109,153,762.02 | 66,401,493.75 | ||||||||||
Jeffrey H. Kupor | 3,109,094,174.85 | 66,461,080.92 | ||||||||||
Anthony J. LaCava, Jr. | 3,107,453,603.09 | 68,101,652.67 | ||||||||||
James Liddy | 3,108,418,832.17 | 67,136,423.60 | ||||||||||
Dr. Prema Mathai-Davis | 3,100,922,564.57 | 74,632,691.20 | ||||||||||
Joel W. Motley | 3,104,496,522.60 | 71,058,733.17 | ||||||||||
Teresa M. Ressel | 3,109,248,693.76 | 66,306,562.01 | ||||||||||
Douglas Sharp | 3,108,681,578.09 | 66,873,677.67 | ||||||||||
Robert C. Troccoli | 3,104,038,320.81 | 71,516,934.96 | ||||||||||
Daniel S. Vandivort | 3,106,373,978.14 | 69,181,277.62 |
* Proposal 1 required approval by a combined vote of all the portfolios of AIM Counselor Series Trust (Invesco Counselor Series Trust).
T-37 | Invesco Senior Floating Rate Fund |
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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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, 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/corporate/about-us/esg. 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. This 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 number(s): 811-09913 and 333-36074 | Invesco Distributors, Inc. | O-SFLR-SAR-1 |
Semiannual Report to Shareholders | February 29, 2024 |
Invesco Short Duration High Yield Municipal Fund
Nasdaq:
A: ISHAX ∎ C: ISHCX ∎ Y: ISHYX ∎ R5: ISHFX ∎ R6: ISHSX
2 | Fund Performance | |||
4 | Schedule of Investments | |||
23 | Financial Statements | |||
26 | Financial Highlights | |||
27 | Notes to Financial Statements | |||
34 | Fund Expenses | |||
35 | Proxy Results |
Beginning in July 2024, amendments adopted by the Securities and Exchange Commission will substantially impact the design, content, and delivery of shareholder reports. These newly designed shareholder reports will highlight key fund information in a clear and concise format and must be mailed to each shareholder that has not elected to receive the reports electronically. Other information, including financial statements, will no longer be included in the shareholder report but will be available at invesco.com/reports, delivered upon request, and filed on a semi-annual basis on Form N-CSR.
If you would like to receive shareholder reports and other communications electronically instead of by mail, you may make that request 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. If you do not make this request or enroll in e-delivery, you will receive future shareholder reports and other communications by mail.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is 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, 8/31/23 to 2/29/24, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. | ||
Class A Shares | 4.13% | |
Class C Shares | 3.75 | |
Class Y Shares | 4.15 | |
Class R5 Shares | 4.37 | |
Class R6 Shares | 4.19 | |
S&P Municipal Bond Indexq (Broad Market Index)* | 4.23 | |
Bloomberg U.S. Aggregate Bond Indexq (Broad Market Index)* | 2.35 | |
S&P Municipal Bond High Yield Indexq (Style-Specific Index) | 6.11 | |
Custom Invesco Short Duration High Yield Municipal Index∎ (Style-Specific Index) | 4.57 | |
Source(s): qRIMES Technologies Corp.; ∎Invesco, RIMES Technologies Corp. | ||
*Effective April 1, 2024, the Fund changed its broad-based securities market benchmark from the Bloomberg U.S. Aggregate Bond Index to the S&P Municipal Bond Index. The Fund had previously changed its broad-based securities market benchmark from the S&P Municipal Bond High Yield Index to the Bloomberg U.S. Aggregate Bond Index in December 2023. The Fund believes the S&P Municipal Bond Index is a more appropriate comparison for evaluating the Fund’s performance. | ||
The S&P Municipal Bond Index is a broad, market value-weighted index that seeks to measure the performance of the US municipal bond market. | ||
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market. | ||
The S&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. | ||
The Custom 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. The S&P Municipal Bond Short Index is considered representative of US municipal bonds with maturities between six months and four years. | ||
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 visiting invesco.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, visit blog.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 2/29/24, including maximum applicable sales charges
|
| |||
Class A Shares | ||||
Inception (9/30/15) | 2.29% | |||
5 Years | 0.77 | |||
1 Year | 2.01 | |||
Class C Shares | ||||
Inception (9/30/15) | 1.88% | |||
5 Years | 0.54 | |||
1 Year | 2.86 | |||
Class Y Shares | ||||
Inception (9/30/15) | 2.86% | |||
5 Years | 1.51 | |||
1 Year | 4.78 | |||
Class R5 Shares | ||||
Inception (9/30/15) | 2.96% | |||
5 Years | 1.69 | |||
1 Year | 5.46 | |||
Class R6 Shares | ||||
Inception | 2.85% | |||
5 Years | 1.56 | |||
1 Year | 4.86 |
Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
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 a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
3 Invesco Short Duration High Yield Municipal Fund
February 29, 2024
(Unaudited)
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||||
| ||||||||||||||||
Municipal Obligations–98.64% | ||||||||||||||||
Alabama–2.45% | ||||||||||||||||
Birmingham (City of), AL Special Care Facilities Financing Authority (Methodist Home for the Aging); Series 2016, RB | 5.25 | % | 06/01/2025 | $ | 600 | $ | 595,833 | |||||||||
| ||||||||||||||||
Black Belt Energy Gas District (The); | ||||||||||||||||
Series 2022 C-1, RB(a) | 5.25 | % | 06/01/2029 | 5,750 | 6,061,956 | |||||||||||
| ||||||||||||||||
Series 2022 F, RB(a) | 5.50 | % | 12/01/2028 | 2,500 | 2,657,265 | |||||||||||
| ||||||||||||||||
Fairfield (City of), AL; Series 2012, GO Wts. | 6.00 | % | 06/01/2031 | 3,120 | 2,808,000 | |||||||||||
| ||||||||||||||||
Huntsville (City of), AL Special Care Facilities Financing Authority (Redstone Village); | ||||||||||||||||
Series 2007, RB (Acquired 12/29/2015; Cost $90,000)(b)(c) | 5.50 | % | 01/01/2028 | 90 | 51,300 | |||||||||||
| ||||||||||||||||
Series 2014, RB | 3.50 | % | 07/01/2026 | 5,022 | 2,862,816 | |||||||||||
| ||||||||||||||||
Mobile (City of), AL Improvement District (McGowin Park); | ||||||||||||||||
Series 2016 A, RB | 5.00 | % | 08/01/2025 | 480 | 477,200 | |||||||||||
| ||||||||||||||||
Series 2016 A, RB | 5.25 | % | 08/01/2030 | 200 | 194,410 | |||||||||||
| ||||||||||||||||
Southeast Energy Authority A Cooperative District (No. 2); Series 2021 B, RB(a) | 4.00 | % | 12/01/2031 | 5,390 | 5,418,468 | |||||||||||
| ||||||||||||||||
Southeast Energy Authority A Cooperative District (No. 3); Series 2022 A-1, RB(a) | 5.50 | % | 12/01/2029 | 5,000 | 5,353,981 | |||||||||||
| ||||||||||||||||
Talladega (County of), AL; Series 2002 D, Tax Anticipation Wts. (INS - NATL)(d) | 5.25 | % | 01/01/2029 | 25 | 25,031 | |||||||||||
| ||||||||||||||||
Tuscaloosa (County of), AL Industrial Development Authority (Hunt Refining); Series 2019 A, Ref. IDR(e) | 5.25 | % | 05/01/2044 | 4,000 | 3,984,925 | |||||||||||
| ||||||||||||||||
30,491,185 | ||||||||||||||||
| ||||||||||||||||
American Samoa–0.08% | ||||||||||||||||
American Samoa (Territory of) Economic Development Authority; Series 2015 A, Ref. RB | 6.25 | % | 09/01/2029 | 1,000 | 1,032,647 | |||||||||||
| ||||||||||||||||
Arizona–4.07% | ||||||||||||||||
Arizona (State of) Industrial Development Authority (ACCEL Schools); Series 2018 A, RB(e) | 5.00 | % | 08/01/2033 | 1,955 | 1,914,724 | |||||||||||
| ||||||||||||||||
Arizona (State of) Industrial Development Authority (American Charter Schools Foundation); | ||||||||||||||||
Series 2017, Ref. RB(e) | 6.00 | % | 07/01/2037 | 3,295 | 3,392,484 | |||||||||||
| ||||||||||||||||
Series 2017, Ref. RB(e) | 6.00 | % | 07/01/2047 | 1,385 | 1,408,597 | |||||||||||
| ||||||||||||||||
Arizona (State of) Industrial Development Authority (Basis Schools); Series 2017 A, Ref. RB(e) | 5.00 | % | 07/01/2026 | 310 | 312,007 | |||||||||||
| ||||||||||||||||
Arizona (State of) Industrial Development Authority (Doral Academy of Nevada - Fire Mesa & Red Rock Campus); Series 2019, RB | 3.55 | % | 07/15/2029 | 570 | 549,832 | |||||||||||
| ||||||||||||||||
Arizona (State of) Industrial Development Authority (Leman Academy-Parker Colorado); | ||||||||||||||||
Series 2019, RB(e) | 4.50 | % | 07/01/2029 | 765 | 758,531 | |||||||||||
| ||||||||||||||||
Series 2019, RB(e) | 5.00 | % | 07/01/2039 | 4,520 | 4,406,349 | |||||||||||
| ||||||||||||||||
Arizona (State of) Industrial Development Authority (Linder Village); Series 2020, RB(e) | 5.00 | % | 06/01/2031 | 2,365 | 2,404,807 | |||||||||||
| ||||||||||||||||
Arizona (State of) Industrial Development Authority (Pinecrest Academy of Nevada-Horizon, Inspirada and St. Rose Campus Projects); Series 2018 A, RB(e) | 5.00 | % | 07/15/2028 | 750 | 761,137 | |||||||||||
| ||||||||||||||||
Arizona (State of) Industrial Development Authority (Somerset Academy of Las Vegas - Lone Mountain Campus); Series 2019 A, IDR(e) | 5.00 | % | 12/15/2039 | 400 | 396,524 | |||||||||||
| ||||||||||||||||
Chandler (City of), AZ Industrial Development Authority (Intel Corp.); Series 2022-1, RB(a)(f) | 5.00 | % | 09/01/2027 | 2,000 | 2,068,980 | |||||||||||
| ||||||||||||||||
Glendale (City of), AZ Industrial Development Authority (Terraces of Phoenix); Series 2018 A, Ref. RB | 5.00 | % | 07/01/2038 | 320 | 310,737 | |||||||||||
| ||||||||||||||||
Greater Arizona Development Authority; Series 2007 A, RB (INS - NATL)(d) | 4.38 | % | 08/01/2032 | 5 | 5,005 | |||||||||||
| ||||||||||||||||
Maricopa (County of), AZ Industrial Development Authority (Benjamin Franklin Charter School); Series 2018, RB(e) | 4.80 | % | 07/01/2028 | 2,745 | 2,782,258 | |||||||||||
| ||||||||||||||||
Maricopa (County of), AZ Industrial Development Authority (Legacy Traditional Schools); Series 2019, Ref. RB(e) | 5.00 | % | 07/01/2039 | 2,250 | 2,258,188 | |||||||||||
| ||||||||||||||||
Maricopa (County of), AZ Industrial Development Authority (Valley Christian Schools); | ||||||||||||||||
Series 2023, RB(e) | 5.25 | % | 07/01/2033 | 725 | 738,212 | |||||||||||
| ||||||||||||||||
Series 2023, RB(e) | 6.00 | % | 07/01/2043 | 1,885 | 1,927,519 | |||||||||||
| ||||||||||||||||
Phoenix (City of), AZ Industrial Development Authority (Basis Schools); Series 2016 A, Ref. RB(e) | 5.00 | % | 07/01/2035 | 2,900 | 2,914,930 | |||||||||||
| ||||||||||||||||
Phoenix (City of), AZ Industrial Development Authority (Legacy Traditional Schools); | ||||||||||||||||
Series 2014 A, RB(e) | 5.75 | % | 07/01/2024 | 175 | 175,709 | |||||||||||
| ||||||||||||||||
Series 2014 A, RB(e) | 6.75 | % | 07/01/2044 | 3,190 | 3,208,081 | |||||||||||
| ||||||||||||||||
Series 2015, Ref. RB(e) | 5.00 | % | 07/01/2035 | 2,820 | 2,839,535 | |||||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 Invesco Short Duration High Yield Municipal Fund
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||||
| ||||||||||||||||
Arizona–(continued) | ||||||||||||||||
Pima (County of), AZ Industrial Development Authority (American Leadership Academy); | ||||||||||||||||
Series 2015, Ref. RB(e) | 4.60 | % | 06/15/2025 | $ | 650 | $ | 648,679 | |||||||||
| ||||||||||||||||
Series 2015, Ref. RB(e) | 5.38 | % | 06/15/2035 | 3,370 | 3,401,033 | |||||||||||
| ||||||||||||||||
Series 2019, Ref. RB(e) | 5.00 | % | 06/15/2034 | 620 | 623,083 | |||||||||||
| ||||||||||||||||
Series 2022, Ref. RB(e) | 4.00 | % | 06/15/2031 | 545 | 525,259 | |||||||||||
| ||||||||||||||||
Pima (County of), AZ Industrial Development Authority (Arizona Charter Schools); | 5.38 | % | 07/01/2031 | 4,460 | 4,429,037 | |||||||||||
| ||||||||||||||||
Pima (County of), AZ Industrial Development Authority (Career Success Schools); Series 2020, Ref. RB(e) | 4.75 | % | 05/01/2030 | 1,725 | 1,708,572 | |||||||||||
| ||||||||||||||||
Pima (County of), AZ Industrial Development Authority (Excalibur Charter School (The)); Series 2016, Ref. RB(e) | 5.00 | % | 09/01/2026 | 180 | 179,874 | |||||||||||
| ||||||||||||||||
Pima (County of), AZ Industrial Development Authority (Grande Innovations Academy); Series 2018, RB(e) | 4.13 | % | 07/01/2026 | 765 | 750,434 | |||||||||||
| ||||||||||||||||
Pima (County of), AZ Industrial Development Authority (Imagine East Mesa Charter Schools); | ||||||||||||||||
Series 2019, RB(e) | 5.00 | % | 07/01/2029 | 300 | 302,467 | |||||||||||
| ||||||||||||||||
Series 2019, RB(e) | 5.00 | % | 07/01/2034 | 400 | 401,277 | |||||||||||
| ||||||||||||||||
Series 2019, RB(e) | 5.00 | % | 07/01/2039 | 500 | 489,489 | |||||||||||
| ||||||||||||||||
Pima (County of), AZ Industrial Development Authority (Paideia Academies (The)); Series 2019, RB | 4.13 | % | 07/01/2029 | 150 | 143,179 | |||||||||||
| ||||||||||||||||
Tempe (City of), AZ Industrial Development Authority (Friendship Village of Tempe); | ||||||||||||||||
Series 2021 A, Ref. RB | 4.00 | % | 12/01/2029 | 380 | 366,542 | |||||||||||
| ||||||||||||||||
Series 2021 A, Ref. RB | 4.00 | % | 12/01/2030 | 495 | 473,492 | |||||||||||
| ||||||||||||||||
Series 2021 A, Ref. RB | 4.00 | % | 12/01/2031 | 465 | 440,865 | |||||||||||
| ||||||||||||||||
Tempe (City of), AZ Industrial Development Authority (Mirabella at ASU); Series 2017 A, RB(e) | 6.13 | % | 10/01/2052 | 300 | 181,507 | |||||||||||
| ||||||||||||||||
50,598,935 | ||||||||||||||||
| ||||||||||||||||
Arkansas–1.41% | ||||||||||||||||
Arkansas (State of) Development Finance Authority (Big River Steel); Series 2019, RB(e)(f) | 4.50 | % | 09/01/2049 | 2,000 | 1,979,039 | |||||||||||
| ||||||||||||||||
Arkansas (State of) Development Finance Authority (Big River Steel) (Green Bonds); Series 2020, RB(e)(f) | 4.75 | % | 09/01/2049 | 7,370 | 7,378,124 | |||||||||||
| ||||||||||||||||
Arkansas (State of) Development Finance Authority (Green Bonds); Series 2022, RB(f) | 5.45 | % | 09/01/2052 | 8,000 | 8,161,865 | |||||||||||
| ||||||||||||||||
17,519,028 | ||||||||||||||||
| ||||||||||||||||
California–7.28% | ||||||||||||||||
California (State of); | ||||||||||||||||
Series 1996, GO Bonds (INS - FGIC)(d) | 5.38 | % | 06/01/2026 | 1,415 | 1,421,956 | |||||||||||
| ||||||||||||||||
Series 2021, GO Bonds | 3.00 | % | 12/01/2046 | 2,000 | 1,656,904 | |||||||||||
| ||||||||||||||||
California (State of) Community Choice Financing Authority (Green Bonds); Series 2022 A-1, RB(a) | 4.00 | % | 08/01/2028 | 16,065 | 16,166,651 | |||||||||||
| ||||||||||||||||
California (State of) County Tobacco Securitization Agency (Alameda County Tobacco Asset Securitization Corp.); Series 2002, RB | 6.00 | % | 06/01/2042 | 135 | 137,817 | |||||||||||
| ||||||||||||||||
California (State of) County Tobacco Securitization Agency (Stanislaus County Tobacco Funding Corp.); Series 2002 A, RB | 5.88 | % | 06/01/2043 | 1,225 | 1,225,480 | |||||||||||
| ||||||||||||||||
California (State of) Housing Finance Agency (Social Certificates); Series 2023-1, RB | 4.38 | % | 09/20/2036 | 2,488 | 2,463,516 | |||||||||||
| ||||||||||||||||
California (State of) Infrastructure & Economic Development Bank (Brightline West Passenger Rail); Series 2020, RB(a)(e)(f) | 8.00 | % | 08/15/2024 | 4,000 | 4,068,774 | |||||||||||
| ||||||||||||||||
California (State of) Municipal Finance Authority; Series 2023, RB(a)(f) | 4.38 | % | 09/01/2033 | 2,500 | 2,626,947 | |||||||||||
| ||||||||||||||||
California (State of) Municipal Finance Authority (Bella Mente Montessori Academy); Series 2018 A, RB(e) | 5.00 | % | 06/01/2038 | 3,345 | 3,278,009 | |||||||||||
| ||||||||||||||||
California (State of) Municipal Finance Authority (United Airlines, Inc.); Series 2019, RB(f) | 4.00 | % | 07/15/2029 | 7,000 | 6,908,378 | |||||||||||
| ||||||||||||||||
California (State of) Municipal Finance Authority (Waste Management, Inc.); | ||||||||||||||||
Series 2020, RB(a)(f) | 4.80 | % | 06/02/2025 | 1,500 | 1,508,700 | |||||||||||
| ||||||||||||||||
Series 2022 A, RB(a)(f) | 4.13 | % | 10/01/2025 | 4,000 | 4,002,626 | |||||||||||
| ||||||||||||||||
California (State of) Pollution Control Financing Authority; Series 2012, RB(e)(f) | 5.00 | % | 07/01/2037 | 2,000 | 2,001,916 | |||||||||||
| ||||||||||||||||
California (State of) Pollution Control Financing Authority (Aemerge Redpak Services Southern California LLC); Series 2016, RB (Acquired 01/22/2016-09/25/2017; | 7.00 | % | 12/01/2027 | 710 | 71,000 | |||||||||||
| ||||||||||||||||
California (State of) Pollution Control Financing Authority (CalPlant I) (Green Bonds); | ||||||||||||||||
Series 2017, RB (Acquired 09/15/2017-02/12/2019; Cost $5,125,317)(b)(c)(e)(f) | 7.50 | % | 07/01/2032 | 4,950 | 66,825 | |||||||||||
| ||||||||||||||||
Series 2020, RB (Acquired 10/06/2020; Cost $955,203)(b)(c)(e)(f) | 7.50 | % | 07/01/2032 | 1,000 | 13,500 | |||||||||||
| ||||||||||||||||
California (State of) Public Finance Authority (California University of Science and Medicine); Series 2019 A, RB(e) | 6.25 | % | 07/01/2054 | 4,100 | 4,274,432 | |||||||||||
| ||||||||||||||||
California (State of) Public Finance Authority (Excelsior Charter Schools); Series 2020 A, RB(e) | 5.00 | % | 06/15/2040 | 1,060 | 1,040,245 | |||||||||||
|
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 Amount (000) | Value | |||||||||||||
| ||||||||||||||||
California–(continued) | ||||||||||||||||
California (State of) Public Finance Authority (Trinity Classical Academy); Series 2019 B, RB(e) | 5.00 | % | 07/01/2026 | $ | 175 | $ | 170,670 | |||||||||
| ||||||||||||||||
California (State of) School Finance Authority (New Designs Charter School); Series 2012 A, RB | 5.25 | % | 06/01/2032 | 930 | 930,658 | |||||||||||
| ||||||||||||||||
California (State of) School Finance Authority (Partnership to Uplift Communities) (Social Bonds); | ||||||||||||||||
Series 2023, Ref. RB(e) | 5.00 | % | 08/01/2033 | 740 | 764,117 | |||||||||||
| ||||||||||||||||
Series 2023, Ref. RB(e) | 5.25 | % | 08/01/2038 | 500 | 511,528 | |||||||||||
| ||||||||||||||||
California (State of) School Finance Authority (TEACH Public Schools); Series 2019 A, RB(e) | 5.00 | % | 06/01/2039 | 740 | 736,042 | |||||||||||
| ||||||||||||||||
California (State of) Statewide Communities Development Authority (Eskaton Properties, Inc.); Series 2012, RB | 5.25 | % | 11/15/2034 | 5,965 | 5,965,915 | |||||||||||
| ||||||||||||||||
California (State of) Statewide Communities Development Authority (Lancer Educational Student Housing); Series 2016, Ref. RB(e) | 4.00 | % | 06/01/2026 | 310 | 306,973 | |||||||||||
| ||||||||||||||||
California (State of) Statewide Communities Development Authority (Loma Linda University Medical Center); | ||||||||||||||||
Series 2014, RB | 5.25 | % | 12/01/2034 | 500 | 502,589 | |||||||||||
| ||||||||||||||||
Series 2014, RB | 5.50 | % | 12/01/2054 | 8,238 | 8,135,054 | |||||||||||
| ||||||||||||||||
Series 2016 A, RB(e) | 5.25 | % | 12/01/2056 | 3,000 | 3,013,907 | |||||||||||
| ||||||||||||||||
Series 2018 A, RB(e) | 5.50 | % | 12/01/2058 | 3,000 | 3,051,301 | |||||||||||
| ||||||||||||||||
California (State of) Statewide Communities Development Authority (NCCD-Hooper Street LLC-California College of the Arts); Series 2019, RB(e) | 5.00 | % | 07/01/2029 | 900 | 922,736 | |||||||||||
| ||||||||||||||||
Fresno (City of), CA; Series 2023 A, Ref. RB (INS - BAM)(d)(f) | 5.00 | % | 07/01/2048 | 2,000 | 2,105,771 | |||||||||||
| ||||||||||||||||
North City (City of), CA West School Facilities Financing Authority; Series 2012 A, RB (INS - AGM)(d) | 5.00 | % | 09/01/2026 | 605 | 605,727 | |||||||||||
| ||||||||||||||||
Palomar Health; Series 2016, Ref. RB | 4.00 | % | 11/01/2039 | 1,250 | 1,163,869 | |||||||||||
| ||||||||||||||||
Pomona Unified School District; Series 2021 F, GO Bonds (INS - BAM)(d) | 3.00 | % | 08/01/2048 | 1,000 | 792,996 | |||||||||||
| ||||||||||||||||
Sacramento (County of), CA (Juvenile Courthouse); Series 2003, COP (INS - AMBAC)(d) | 5.00 | % | 12/01/2034 | 5,405 | 5,415,140 | |||||||||||
| ||||||||||||||||
West Covina (City of), CA Public Financing Authority (Big League Dreams); Series 2006 A, RB | 5.00 | % | 06/01/2030 | 2,630 | 2,634,653 | |||||||||||
| ||||||||||||||||
90,663,322 | ||||||||||||||||
| ||||||||||||||||
Colorado–7.53% | ||||||||||||||||
3rd and Havana Metropolitan District; Series 2020 A, GO Bonds | 4.50 | % | 12/01/2030 | 2,330 | 2,184,733 | |||||||||||
| ||||||||||||||||
Amber Creek Metropolitan District; Series 2017 A, Ref. GO Bonds | 5.00 | % | 12/01/2037 | 697 | 648,259 | |||||||||||
| ||||||||||||||||
Baseline Metropolitan District No. 1; | ||||||||||||||||
Series 2018 A-2, RB | 5.13 | % | 12/01/2028 | 1,500 | 1,518,230 | |||||||||||
| ||||||||||||||||
Series 2018 A-2, RB | 5.50 | % | 12/01/2034 | 1,000 | 1,024,940 | |||||||||||
| ||||||||||||||||
Brighton Crossing Metropolitan District No. 6; | ||||||||||||||||
Series 2020 A, GO Bonds | 5.00 | % | 12/01/2035 | 525 | 518,833 | |||||||||||
| ||||||||||||||||
Series 2020 A, GO Bonds | 5.00 | % | 12/01/2040 | 515 | 481,822 | |||||||||||
| ||||||||||||||||
Canyon Pines Metropolitan District; Series 2022 A, GO Bonds(g) | 0.00 | % | 12/01/2027 | 8,770 | 6,623,392 | |||||||||||
| ||||||||||||||||
Canyons Metropolitan District No. 5; Series 2016, GO Bonds | 7.00 | % | 12/15/2057 | 1,500 | 1,065,828 | |||||||||||
| ||||||||||||||||
Centerra Metropolitan District No. 1 (In the City of Loveland); Series 2020 A, Ref. GO Bonds | 4.00 | % | 12/01/2029 | 1,115 | 1,064,226 | |||||||||||
| ||||||||||||||||
Clear Creek Transit Metropolitan District No. 2; Series 2021 A, GO Bonds | 5.00 | % | 12/01/2041 | 1,100 | 1,038,382 | |||||||||||
| ||||||||||||||||
Colliers Hill Metropolitan District No. 2; Series 2022 B-2, GO Bonds | 7.63 | % | 12/15/2042 | 2,000 | 1,882,961 | |||||||||||
| ||||||||||||||||
Colorado (State of) Health Facilities Authority (Aberdeen Ridge); | ||||||||||||||||
Series 2021 A, RB | 5.00 | % | 05/15/2035 | 4,035 | 3,311,326 | |||||||||||
| ||||||||||||||||
Series 2021 A, RB | 5.00 | % | 05/15/2044 | 1,170 | 811,266 | |||||||||||
| ||||||||||||||||
Series 2021 B, RB | 2.63 | % | 05/15/2029 | 1,125 | 1,042,502 | |||||||||||
| ||||||||||||||||
Colorado (State of) Health Facilities Authority (Ralston Creek at Arvada); Series 2017 B, RB | 4.00 | % | 11/01/2027 | 4,200 | 3,811,747 | |||||||||||
| ||||||||||||||||
Colorado (State of) Health Facilities Authority (Sunny Vista Living Center); Series 2015 A, Ref. RB(e) | 5.00 | % | 12/01/2025 | 100 | 93,708 | |||||||||||
| ||||||||||||||||
Colorado (State of) Health Facilities Authority (Volunteers of America Care); Series 2007 A, RB | 5.30 | % | 07/01/2037 | 855 | 687,007 | |||||||||||
| ||||||||||||||||
Colorado (State of) International Center Metropolitan District No. 14; Series 2018, GO Bonds | 5.63 | % | 12/01/2032 | 998 | 1,007,849 | |||||||||||
| ||||||||||||||||
Colorado (State of) Science and Technology Park Metropolitan District No. 1; Series 2018, Ref. RB | 5.00 | % | 12/01/2033 | 1,000 | 1,004,994 | |||||||||||
| ||||||||||||||||
Copperleaf Metropolitan District No. 6; Series 2022 B, GO Bonds | 6.00 | % | 12/15/2041 | 1,225 | 1,214,178 | |||||||||||
| ||||||||||||||||
Denver (City & County of), CO (United Airlines, Inc.); Series 2017, Ref. RB(f) | 5.00 | % | 10/01/2032 | 1,000 | 999,928 | |||||||||||
| ||||||||||||||||
Denver (City & County of), CO Health & Hospital Authority (550 Acoma, Inc.); | ||||||||||||||||
Series 2018, COP | 5.00 | % | 12/01/2028 | 310 | 329,493 | |||||||||||
| ||||||||||||||||
Series 2018, COP | 5.00 | % | 12/01/2029 | 500 | 528,768 | |||||||||||
| ||||||||||||||||
Series 2018, COP | 5.00 | % | 12/01/2030 | 350 | 370,150 | |||||||||||
| ||||||||||||||||
Series 2018, COP | 5.00 | % | 12/01/2031 | 375 | 395,934 | |||||||||||
| ||||||||||||||||
Series 2018, COP | 5.00 | % | 12/01/2032 | 455 | 479,213 | |||||||||||
| ||||||||||||||||
Denver Gateway Center Metropolitan District; Series 2018 A, GO Bonds | 5.50 | % | 12/01/2038 | 1,343 | 1,251,944 | |||||||||||
|
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) | ||||||||||||||||
Dominion Water & Sanitation District; | ||||||||||||||||
Series 2022, Ref. RB | 5.00 | % | 12/01/2027 | $ | 2,185 | $ | 2,190,493 | |||||||||
| ||||||||||||||||
Series 2022, Ref. RB | 5.25 | % | 12/01/2032 | 3,415 | 3,491,464 | |||||||||||
| ||||||||||||||||
Elbert & Highway 86 Commercial Metropolitan District; Series 2021 A, Ref. GO Bonds(e) | 5.00 | % | 12/01/2041 | 1,700 | 1,590,144 | |||||||||||
| ||||||||||||||||
Frisco (Town of), CO (Marina Enterprise); Series 2019, RB | 5.00 | % | 12/01/2036 | 600 | 605,931 | |||||||||||
| ||||||||||||||||
Granby Ranch Metropolitan District; Series 2018, Ref. GO Bonds(e) | 4.88 | % | 12/01/2028 | 575 | 569,451 | |||||||||||
| ||||||||||||||||
Independence Water & Sanitation District; Series 2019, RB | 7.25 | % | 12/01/2038 | 1,253 | 1,293,929 | |||||||||||
| ||||||||||||||||
Jefferson (County of), CO Center Metropolitan District No. 1; Series 2020 B, Ref. RB | 5.75 | % | 12/15/2050 | 5,499 | 5,498,035 | |||||||||||
| ||||||||||||||||
Kinston Metropolitan District No. 5; Series 2020 A, GO Bonds | 4.63 | % | 12/01/2035 | 1,000 | 919,794 | |||||||||||
| ||||||||||||||||
Morgan Hill Metropolitan District No. 3; | 3.00 | % | 12/01/2031 | 980 | 839,489 | |||||||||||
| ||||||||||||||||
Series 2021 A, GO Bonds | 3.50 | % | 12/01/2041 | 2,940 | 2,321,248 | |||||||||||
| ||||||||||||||||
Mulberry Metropolitan District No. 2; Series 2022, RB | 7.00 | % | 12/01/2034 | 6,000 | 6,262,473 | |||||||||||
| ||||||||||||||||
Neu Town Metropolitan District; Series 2018 A, Ref. GO Bonds | 5.13 | % | 12/01/2031 | 1,360 | 1,366,561 | |||||||||||
| ||||||||||||||||
Nine Mile Metropolitan District; Series 2020, RB | 4.63 | % | 12/01/2030 | 2,265 | 2,273,510 | |||||||||||
| ||||||||||||||||
Painted Prairie Metropolitain District No. 2; Series 2018, GO Bonds | 5.25 | % | 12/01/2048 | 2,221 | 2,111,623 | |||||||||||
| ||||||||||||||||
Parker Automotive Metropolitan District; Series 2023 B, Ref. GO Bonds | 8.25 | % | 12/15/2037 | 2,225 | 2,268,299 | |||||||||||
| ||||||||||||||||
Peak Metropolitan District No. 1; | ||||||||||||||||
Series 2021 A, GO Bonds(e) | 4.00 | % | 12/01/2035 | 540 | 478,156 | |||||||||||
| ||||||||||||||||
Series 2021 A, GO Bonds(e) | 5.00 | % | 12/01/2041 | 1,670 | 1,583,704 | |||||||||||
| ||||||||||||||||
Plaza Metropolitan District No. 1; Series 2013, Ref. RB(e) | 5.00 | % | 12/01/2040 | 1,465 | 1,442,520 | |||||||||||
| ||||||||||||||||
Prairie Center Metropolitan District No. 7; Series 2021, GO Bonds | 6.38 | % | 06/15/2046 | 1,330 | 1,253,346 | |||||||||||
| ||||||||||||||||
Rampart Range Metropolitan District No. 5; Series 2021, RB | 4.00 | % | 12/01/2036 | 1,250 | 1,080,636 | |||||||||||
| ||||||||||||||||
Riverwalk Metropolitan District No. 2; Series 2022 A, RB | 4.50 | % | 12/01/2032 | 4,000 | 3,751,368 | |||||||||||
| ||||||||||||||||
Rocky Mountain Rail Park Metropolitan District; | ||||||||||||||||
Series 2021 A, GO Bonds(e) | 5.00 | % | 12/01/2031 | 3,445 | 3,077,736 | |||||||||||
| ||||||||||||||||
Series 2021 A, GO Bonds(e) | 5.00 | % | 12/01/2041 | 2,000 | 1,410,081 | |||||||||||
| ||||||||||||||||
St. Vrain Lakes Metropolitan District No. 2; Series 2017 A, GO Bonds | 5.00 | % | 12/01/2037 | 1,500 | 1,503,311 | |||||||||||
| ||||||||||||||||
Trails at Crowfoot Metropolitan District No. 3; | ||||||||||||||||
Second Series 2019 A, GO Bonds | 4.38 | % | 12/01/2030 | 620 | 616,834 | |||||||||||
| ||||||||||||||||
Second Series 2019 A, GO Bonds | 5.00 | % | 12/01/2039 | 1,000 | 1,001,020 | |||||||||||
| ||||||||||||||||
Transport Metropolitan District No. 3; Series 2021 A-1, GO Bonds | 5.00 | % | 12/01/2041 | 2,700 | 2,362,584 | |||||||||||
| ||||||||||||||||
Vauxmont Metropolitan District; Series 2019, Ref. GO Bonds (INS - AGM)(d) | 3.25 | % | 12/15/2050 | 803 | 671,338 | |||||||||||
| ||||||||||||||||
Verve Metropolitan District No. 1; Series 2023, GO Bonds | 5.75 | % | 12/01/2033 | 2,895 | 2,784,024 | |||||||||||
| ||||||||||||||||
Villages at Castle Rock Metropolitan District No. 6; Series 2021 B, Ref. GO Bonds(e) | 5.70 | % | 12/01/2051 | 166 | 154,361 | |||||||||||
| ||||||||||||||||
Westerly Metropolitan District No. 4; | ||||||||||||||||
Series 2021 A, GO Bonds | 4.13 | % | 12/01/2031 | 615 | 568,388 | |||||||||||
| ||||||||||||||||
Series 2021 A, GO Bonds | 5.00 | % | 12/01/2040 | 1,000 | 949,116 | |||||||||||
| ||||||||||||||||
93,682,580 | ||||||||||||||||
| ||||||||||||||||
Delaware–0.16% | ||||||||||||||||
Millsboro (Town of), DE (Plantation Lakes Special Development District); Series 2018, Ref. RB(e) | 5.00 | % | 07/01/2028 | 1,937 | 1,953,530 | |||||||||||
| ||||||||||||||||
District of Columbia–2.26% | ||||||||||||||||
District of Columbia (Ingleside at Rock Creek); | ||||||||||||||||
Series 2017 A, RB | 4.13 | % | 07/01/2027 | 950 | 931,883 | |||||||||||
| ||||||||||||||||
Series 2017 A, RB | 5.00 | % | 07/01/2032 | 1,500 | 1,499,895 | |||||||||||
| ||||||||||||||||
District of Columbia (Provident Group - Howard Properties LLC); Series 2013, RB | 5.00 | % | 10/01/2035 | 1,285 | 1,284,968 | |||||||||||
| ||||||||||||||||
District of Columbia Tobacco Settlement Financing Corp.; Series 2001, RB | 6.75 | % | 05/15/2040 | 23,725 | 24,467,357 | |||||||||||
| ||||||||||||||||
28,184,103 | ||||||||||||||||
| ||||||||||||||||
Florida–6.29% | ||||||||||||||||
Alachua (County of), FL Health Facilities Authority (East Ridge Retirement Village, Inc.); | ||||||||||||||||
Series 2014, RB (Acquired 12/04/2020; Cost $185,169)(c) | 5.63 | % | 11/15/2029 | 185 | 156,168 | |||||||||||
| ||||||||||||||||
Series 2014, RB (Acquired 06/04/2020; Cost $861,250)(c) | 6.00 | % | 11/15/2029 | 1,000 | 848,646 | |||||||||||
| ||||||||||||||||
Series 2014, RB (Acquired 01/17/2020; Cost $1,409,797)(c) | 6.00 | % | 11/15/2034 | 1,500 | 1,136,772 | |||||||||||
| ||||||||||||||||
Alachua (County of), FL Health Facilities Authority (Terraces at Bonita Springs); | ||||||||||||||||
Series 2022 A, Ref. RB(e) | 5.00 | % | 11/15/2061 | 965 | 659,778 | |||||||||||
| ||||||||||||||||
Series 2022 B, RB(e) | 6.50 | % | 11/15/2033 | 100 | 86,221 | |||||||||||
| ||||||||||||||||
Boggy Creek Improvement District; Series 2023, Ref. RB | 4.50 | % | 05/01/2033 | 1,100 | 1,112,593 | |||||||||||
|
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 | |||||||||||||
| ||||||||||||||||
Florida–(continued) | ||||||||||||||||
Broward (County of), FL; Series 2015 A, RB(f) | 5.00 | % | 10/01/2045 | $ | 10,000 | $ | 10,055,888 | |||||||||
| ||||||||||||||||
Broward (County of), FL Housing Finance Authority (Golden Villas); Series 2008 B, RB(a)(f) | 6.75 | % | 04/01/2025 | 35 | 35,091 | |||||||||||
| ||||||||||||||||
Capital Trust Agency, Inc. (Elim Senior Housing, Inc.); Series 2017, RB(e) | 5.38 | % | 08/01/2032 | 1,000 | 862,404 | |||||||||||
| ||||||||||||||||
Capital Trust Agency, Inc. (H-Bay Ministries, Inc.- Superior Residences); | ||||||||||||||||
Series 2018 B, RB(b) | 4.00 | % | 07/01/2028 | 750 | 22,500 | |||||||||||
| ||||||||||||||||
Series 2018 B, RB(b) | 4.25 | % | 07/01/2033 | 625 | 18,750 | |||||||||||
| ||||||||||||||||
Capital Trust Agency, Inc. (Imagine School at North Manatee); | ||||||||||||||||
Series 2021 C, RB(e) | 5.00 | % | 06/01/2041 | 465 | 430,485 | |||||||||||
| ||||||||||||||||
Series 2021, RB(e) | 3.25 | % | 06/01/2031 | 230 | 202,444 | |||||||||||
| ||||||||||||||||
Series 2021, RB(e) | 5.00 | % | 06/01/2041 | 1,295 | 1,198,877 | |||||||||||
| ||||||||||||||||
Capital Trust Agency, Inc. (Sarasota-Manatee Jewish Housing Council, Inc.); Series 2017, Ref. RB(e) | 5.00 | % | 07/01/2027 | 825 | 792,486 | |||||||||||
| ||||||||||||||||
Capital Trust Agency, Inc. (Sustainability Bonds); Series 2021, RB(e) | 4.00 | % | 06/15/2031 | 700 | 645,176 | |||||||||||
| ||||||||||||||||
Capital Trust Agency, Inc. (University Bridge LLC Student Housing); Series 2018 A, RB(e) | 4.00 | % | 12/01/2028 | 6,310 | 6,123,832 | |||||||||||
| ||||||||||||||||
Capital Trust Authority (Imagine School At West Pasco Project); Series 2023, RB(e) | 6.25 | % | 12/15/2043 | 2,135 | 2,179,611 | |||||||||||
| ||||||||||||||||
Capital Trust Authority (KIPP Miami N Campus); Series 2024, RB(e) | 5.63 | % | 06/15/2044 | 410 | 413,605 | |||||||||||
| ||||||||||||||||
Charlotte (County of), FL Industrial Development Authority (Town & Country Utilities); | ||||||||||||||||
Series 2019, RB(e)(f) | 5.00 | % | 10/01/2029 | 780 | 790,413 | |||||||||||
| ||||||||||||||||
Series 2021, RB(e)(f) | 4.00 | % | 10/01/2041 | 1,800 | 1,586,041 | |||||||||||
| ||||||||||||||||
Escambia (County of), FL Health Facilities Authority; Series 2020, Ref. RB | 4.00 | % | 08/15/2050 | 2,100 | 1,816,744 | |||||||||||
| ||||||||||||||||
Florida Development Finance Corp.; Series 2023, RB(a)(e)(f) | 6.13 | % | 07/01/2026 | 2,000 | 2,035,103 | |||||||||||
| ||||||||||||||||
Florida Development Finance Corp. (Brightline Florida Passenger Rail Expansion); | ||||||||||||||||
Series 2019, RB(a)(e)(f) | 6.25 | % | 12/18/2024 | 3,405 | 3,405,518 | |||||||||||
| ||||||||||||||||
Series 2022, Ref. RB(a)(e)(f) | 8.00 | % | 04/01/2024 | 8,000 | 8,401,714 | |||||||||||
| ||||||||||||||||
Florida Development Finance Corp. (IPS Florida LLC-Idea); Series 2022, RB(e) | 5.25 | % | 06/15/2029 | 1,000 | 1,020,122 | |||||||||||
| ||||||||||||||||
Florida Development Finance Corp. (Parrish Charter Academy, Inc.); Series 2023, RB(a)(e) | 6.25 | % | 06/15/2028 | 3,000 | 2,988,548 | |||||||||||
| ||||||||||||||||
Florida Development Finance Corp. (Virgin Trains USA Passenger Rail); Series 2019 A, Ref. RB(a)(e)(f) | 6.38 | % | 01/01/2026 | 5,000 | 4,994,762 | |||||||||||
| ||||||||||||||||
Lake (County of), FL (Lakeside at Waterman Village); Series 2020 A, Ref. RB | 5.50 | % | 08/15/2030 | 3,595 | 3,608,412 | |||||||||||
| ||||||||||||||||
Lake Helen (City of), FL (Ivy Hawn Charter School of the Arts); | ||||||||||||||||
Series 2018 A, RB(e) | 5.00 | % | 07/15/2028 | 440 | 435,815 | |||||||||||
| ||||||||||||||||
Series 2018 A, RB(e) | 5.38 | % | 07/15/2038 | 1,300 | 1,216,470 | |||||||||||
| ||||||||||||||||
Lee (County of), FL Housing Finance Authority (Aria Landings); Series 2023 B, RB(a)(e) | 5.50 | % | 07/01/2026 | 5,000 | 4,973,768 | |||||||||||
| ||||||||||||||||
Miami-Dade (County of), FL; | ||||||||||||||||
Series 2014, Ref. RB(f) | 5.00 | % | 10/01/2031 | 3,300 | 3,314,877 | |||||||||||
| ||||||||||||||||
Series 2014, Ref. RB(f) | 5.00 | % | 10/01/2032 | 5,000 | 5,022,287 | |||||||||||
| ||||||||||||||||
Palm Beach (County of), FL Health Facilities Authority (Harbour’s Edge); Series 2004 A, RB | 6.00 | % | 11/15/2024 | 5 | 5,000 | |||||||||||
| ||||||||||||||||
Pembroke Harbor Community Development District; Series 2008 A, RB | 7.00 | % | 05/01/2038 | 1,010 | 1,011,853 | |||||||||||
| ||||||||||||||||
Polk (County of), FL Industrial Development Authority (Carpenter’s Home Estates); | ||||||||||||||||
Series 2019, Ref. IDR | 5.00 | % | 01/01/2039 | 300 | 294,438 | |||||||||||
| ||||||||||||||||
Series 2019, Ref. IDR | 5.00 | % | 01/01/2049 | 1,750 | 1,607,761 | |||||||||||
| ||||||||||||||||
Polk (County of), FL Industrial Development Authority (Mineral Development LLC); Series 2020, RB (Acquired 10/23/2020; Cost $2,855,000)(c)(e)(f) | 5.88 | % | 01/01/2033 | 2,855 | 2,756,006 | |||||||||||
| ||||||||||||||||
78,266,979 | ||||||||||||||||
| ||||||||||||||||
Georgia–1.14% | ||||||||||||||||
Albany (City of) & Dougherty (Country of), GA Payroll Development Authority (Procter & Gamble Paper Products Co. (The)); Series 1998, RB(f) | 5.30 | % | 05/15/2026 | 810 | 811,165 | |||||||||||
| ||||||||||||||||
Atlanta (City of), GA Urban Residential Finance Authority (GE Tower Apartments); Series 2023 B, RB(a) | 5.75 | % | 06/01/2025 | 5,000 | 4,981,173 | |||||||||||
| ||||||||||||||||
Cobb (County of), GA Development Authority (Northwest Classical Academy); Series 2023, RB(e) | 5.20 | % | 06/15/2033 | 1,000 | 1,011,403 | |||||||||||
| ||||||||||||||||
DeKalb (County of), IL Development Authority (The Globe Academy, Inc.); | 5.00 | % | 06/01/2040 | 400 | 413,771 | |||||||||||
| ||||||||||||||||
Series 2024, RB | 5.00 | % | 06/01/2045 | 415 | 423,874 | |||||||||||
| ||||||||||||||||
Floyd (County of), GA Development Authority (The Spires at Berry College); Series 2018 A, RB | 5.50 | % | 12/01/2028 | 1,900 | 1,891,223 | |||||||||||
| ||||||||||||||||
Macon-Bibb (County of), GA Urban Development Authority (Academy for Classical Education, Inc.); Series 2017 A, RB(e) | 5.00 | % | 06/15/2027 | 320 | 322,779 | |||||||||||
| ||||||||||||||||
Main Street Natural Gas, Inc.; Series 2023 B, RB(a) | 5.00 | % | 03/01/2030 | 2,000 | 2,122,558 | |||||||||||
| ||||||||||||||||
Oconee (County of), GA Industrial Development Authority (Presbyterian Village Athens); Series 2018 A-1, RB | 5.75 | % | 12/01/2028 | 2,250 | 2,186,273 | |||||||||||
| ||||||||||||||||
14,164,219 | ||||||||||||||||
|
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 Amount (000) | Value | |||||||||||||
| ||||||||||||||||
Guam–0.47% | ||||||||||||||||
Guam (Territory of); Series 2015 D, Ref. RB | 5.00 | % | 11/15/2033 | $ | 3,000 | $ | 3,057,353 | |||||||||
| ||||||||||||||||
Guam (Territory of) Department of Education (John F. Kennedy); Series 2020, Ref. COP | 5.00 | % | 02/01/2040 | 2,750 | 2,769,613 | |||||||||||
| ||||||||||||||||
5,826,966 | ||||||||||||||||
| ||||||||||||||||
Idaho–0.51% | ||||||||||||||||
Idaho (State of) Health Facilities Authority (Valley Vista Care Corp.); Series 2017 A, Ref. RB | 4.00 | % | 11/15/2027 | 825 | 817,932 | |||||||||||
| ||||||||||||||||
Idaho (State of) Housing & Finance Association (Compass Public Charter School, Inc.); Series 2018 A, RB(e) | 4.63 | % | 07/01/2029 | 150 | 150,059 | |||||||||||
| ||||||||||||||||
Idaho (State of) Housing & Finance Association (Future Public School); Series 2022 A, RB(e) | 4.00 | % | 05/01/2042 | 2,280 | 1,894,814 | |||||||||||
| ||||||||||||||||
Idaho (State of) Housing & Finance Association (North Star Charter School); | ||||||||||||||||
Series 2014 A, Ref. RB | 6.75 | % | 07/01/2028 | 340 | 351,182 | |||||||||||
| ||||||||||||||||
Series 2014 A, Ref. RB | 6.75 | % | 07/01/2036 | 526 | 541,262 | |||||||||||
| ||||||||||||||||
Series 2014 A, Ref. RB | 6.75 | % | 07/01/2048 | 2,384 | 2,420,672 | |||||||||||
| ||||||||||||||||
Power County Industrial Development Corp. (FMC Corp.); Series 1999, RB(f) | 6.45 | % | 08/01/2032 | 130 | 130,438 | |||||||||||
| ||||||||||||||||
6,306,359 | ||||||||||||||||
| ||||||||||||||||
Illinois–7.74% | ||||||||||||||||
Aurora (City of), IL (East River Area TIF No. 6); Series 2018 A, Ref. RB | 5.00 | % | 12/30/2027 | 690 | 681,727 | |||||||||||
| ||||||||||||||||
Berwyn (City of), IL (South Berwyn Corridor); Series 2020, RB(e) | 4.00 | % | 12/01/2028 | 1,240 | 1,181,357 | |||||||||||
| ||||||||||||||||
Bradley (Village of), IL (Bradley Commons); | ||||||||||||||||
Series 2018 A, Ref. RB | 5.00 | % | 01/01/2025 | 485 | 485,419 | |||||||||||
| ||||||||||||||||
Series 2018 A, Ref. RB | 5.00 | % | 01/01/2026 | 505 | 505,120 | |||||||||||
| ||||||||||||||||
Series 2018 A, Ref. RB | 5.00 | % | 01/01/2027 | 530 | 530,999 | |||||||||||
| ||||||||||||||||
Chicago (City of), IL; | ||||||||||||||||
Series 2014, RB (INS - BAM)(d) | 5.00 | % | 01/01/2039 | 2,000 | 2,002,419 | |||||||||||
| ||||||||||||||||
Series 2015 A, GO Bonds | 5.50 | % | 01/01/2034 | 1,350 | 1,365,423 | |||||||||||
| ||||||||||||||||
Series 2017 A, Ref. GO Bonds | 5.63 | % | 01/01/2029 | 1,000 | 1,047,571 | |||||||||||
| ||||||||||||||||
Series 2017 A, Ref. GO Bonds | 5.75 | % | 01/01/2034 | 1,500 | 1,573,940 | |||||||||||
| ||||||||||||||||
Chicago (City of), IL (O’Hare International Airport); | ||||||||||||||||
Series 2012 B, Ref. RB(f) | 5.00 | % | 01/01/2030 | 5,290 | 5,292,271 | |||||||||||
| ||||||||||||||||
Series 2017 G, RB(f) | 5.25 | % | 01/01/2031 | 350 | 366,269 | |||||||||||
| ||||||||||||||||
Chicago (City of), IL Board of Education; | ||||||||||||||||
Series 2012 A, GO Bonds | 5.00 | % | 12/01/2042 | 15,000 | 14,998,809 | |||||||||||
| ||||||||||||||||
Series 2015 C, GO Bonds | 5.25 | % | 12/01/2039 | 850 | 846,056 | |||||||||||
| ||||||||||||||||
Series 2017 C, Ref. GO Bonds | 5.00 | % | 12/01/2024 | 1,000 | 1,005,281 | |||||||||||
| ||||||||||||||||
Series 2018 C, Ref. GO Bonds | 5.00 | % | 12/01/2026 | 2,000 | 2,057,742 | |||||||||||
| ||||||||||||||||
Series 2022 B, Ref. GO Bonds | 4.00 | % | 12/01/2041 | 5,000 | 4,710,699 | |||||||||||
| ||||||||||||||||
Evanston (City of), IL (Roycemore School); | ||||||||||||||||
Series 2021, RB(e) | 4.00 | % | 04/01/2032 | 245 | 209,191 | |||||||||||
| ||||||||||||||||
Series 2021, RB(e) | 4.38 | % | 04/01/2041 | 830 | 636,122 | |||||||||||
| ||||||||||||||||
Hillside (Village of), IL (Mannheim Redevelopment); Series 2018, Ref. RB | 5.00 | % | 01/01/2030 | 2,195 | 2,213,091 | |||||||||||
| ||||||||||||||||
Illinois (State of); | ||||||||||||||||
First Series 2020, GO Bonds (INS - NATL)(d)(h)(i) | 6.00 | % | 11/01/2026 | 3,500 | 3,607,079 | |||||||||||
| ||||||||||||||||
Series 2020 A, GO Bonds(h)(i) | 6.00 | % | 05/01/2025 | 2,500 | 2,573,268 | |||||||||||
| ||||||||||||||||
Series 2020, GO Bonds | 5.50 | % | 05/01/2030 | 2,000 | 2,231,048 | |||||||||||
| ||||||||||||||||
Illinois (State of) Development Finance Authority (CITGO Petroleum Corp.); Series 2002, RB(f) | 8.00 | % | 06/01/2032 | 11,805 | 11,816,999 | |||||||||||
| ||||||||||||||||
Illinois (State of) Finance Authority; | ||||||||||||||||
Series 2007, RB | 5.40 | % | 04/01/2027 | 140 | 138,553 | |||||||||||
| ||||||||||||||||
Series 2023, RB(a)(e)(f) | 7.38 | % | 09/01/2033 | 5,000 | 5,429,908 | |||||||||||
| ||||||||||||||||
Illinois (State of) Finance Authority (Benedictine University); | ||||||||||||||||
Series 2017, Ref. RB | 5.00 | % | 10/01/2030 | 1,000 | 981,106 | |||||||||||
| ||||||||||||||||
Series 2017, Ref. RB | 5.00 | % | 10/01/2033 | 1,000 | 971,001 | |||||||||||
| ||||||||||||||||
Illinois (State of) Finance Authority (Intrinsic Schools - Belmont School); Series 2015, RB(e) | 5.25 | % | 12/01/2025 | 175 | 175,153 | |||||||||||
| ||||||||||||||||
Illinois (State of) Finance Authority (Lutheran Communities Obligated Group); | ||||||||||||||||
Series 2019 A, Ref. RB (Acquired 11/27/2019; Cost $2,194,345)(c) | 5.00 | % | 11/01/2027 | 2,065 | 2,026,370 | |||||||||||
| ||||||||||||||||
Series 2019 A, Ref. RB (Acquired 09/08/2022; Cost $1,885,670)(c) | 5.00 | % | 11/01/2035 | 2,020 | 1,864,933 | |||||||||||
| ||||||||||||||||
Illinois (State of) Finance Authority (Montgomery Place); Series 2017, Ref. RB (Acquired 04/12/2017; Cost $570,909)(c) | 5.00 | % | 05/15/2024 | 570 | 568,451 | |||||||||||
| ||||||||||||||||
Illinois (State of) Finance Authority (Park Place of Elmhurst); Series 2016, RB | 5.13 | % | 05/15/2060 | 1,089 | 590,464 | |||||||||||
| ||||||||||||||||
Illinois (State of) Finance Authority (Plymouth Place); Series 2015, Ref. RB(j) | 5.00 | % | 05/15/2025 | 110 | 111,254 | |||||||||||
|
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 | |||||||||||||
| ||||||||||||||||
Illinois–(continued) | ||||||||||||||||
Illinois (State of) Finance Authority (Roosevelt University); | ||||||||||||||||
Series 2007, RB | 5.50 | % | 04/01/2037 | $ | 2,000 | $ | 1,887,684 | |||||||||
| ||||||||||||||||
Series 2019 A, RB(e) | 6.13 | % | 04/01/2049 | 3,000 | 2,926,700 | |||||||||||
| ||||||||||||||||
Illinois (State of) Finance Authority (Rosalind Franklin University); | ||||||||||||||||
Series 2017, Ref. RB | 5.00 | % | 08/01/2027 | 425 | 440,414 | |||||||||||
| ||||||||||||||||
Series 2017, Ref. RB | 5.00 | % | 08/01/2028 | 500 | 518,941 | |||||||||||
| ||||||||||||||||
Series 2017, Ref. RB | 5.00 | % | 08/01/2029 | 325 | 337,413 | |||||||||||
| ||||||||||||||||
Series 2017, Ref. RB | 5.00 | % | 08/01/2030 | 380 | 394,157 | |||||||||||
| ||||||||||||||||
Series 2017, Ref. RB | 5.00 | % | 08/01/2031 | 375 | 388,630 | |||||||||||
| ||||||||||||||||
Series 2017, Ref. RB | 5.00 | % | 08/01/2033 | 470 | 486,193 | |||||||||||
| ||||||||||||||||
Illinois (State of) Finance Authority (Rush University Medical Center); Series 2015 A, Ref. RB | 5.00 | % | 11/15/2038 | 8,700 | 8,777,291 | |||||||||||
| ||||||||||||||||
Illinois (State of) Finance Authority (Three Crowns Park); Series 2017, Ref. RB | 4.00 | % | 02/15/2027 | 1,115 | 1,099,748 | |||||||||||
| ||||||||||||||||
Illinois (State of) Medical District Commission; | ||||||||||||||||
Series 2002, COP (INS - NATL)(d) | 5.13 | % | 06/01/2026 | 35 | 35,030 | |||||||||||
| ||||||||||||||||
Series 2002, COP (INS - NATL)(d) | 5.25 | % | 06/01/2032 | 140 | 140,077 | |||||||||||
| ||||||||||||||||
Manhattan (Village of), IL Special Service Area No. 2004-1 (Brookstone Springs); Series 2015, Ref. RB | 4.25 | % | 03/01/2024 | 82 | 82,000 | |||||||||||
| ||||||||||||||||
Morton Grove (Village of), IL (Sawmill Station Redevelopment); Series 2019, RB | 4.25 | % | 01/01/2029 | 760 | 739,018 | |||||||||||
| ||||||||||||||||
Springfield (City of), IL; Series 2015, Ref. RB (INS - AGM)(d) | 5.00 | % | 03/01/2040 | 3,000 | 3,018,099 | |||||||||||
| ||||||||||||||||
Yorkville (United City of), IL (Raintree Village); Series 2013, Ref. RB | 4.60 | % | 03/01/2025 | 315 | 312,740 | |||||||||||
| ||||||||||||||||
96,379,228 | ||||||||||||||||
| ||||||||||||||||
Indiana–0.95% | ||||||||||||||||
Evansville (City of), IN (Silver Birch of Evansville); Series 2017, RB | 4.80 | % | 01/01/2028 | 300 | 279,487 | |||||||||||
| ||||||||||||||||
Indiana (State of) Finance Authority (Good Samaritan Hospital); Series 2016 A, RB | 5.50 | % | 04/01/2046 | 5,785 | 5,871,850 | |||||||||||
| ||||||||||||||||
Indiana (State of) Finance Authority (Irvington Community School); Series 2018 A, Ref. RB(e) | 5.50 | % | 07/01/2028 | 660 | 660,695 | |||||||||||
| ||||||||||||||||
Indiana (State of) Finance Authority (Ohio Valley Electrical Corp.); Series 2012 A, RB | 4.25 | % | 11/01/2030 | 1,580 | 1,589,551 | |||||||||||
| ||||||||||||||||
Indiana (State of) Finance Authority (University of Evansville); Series 2022 A, Ref. RB | 5.25 | % | 09/01/2037 | 1,865 | 1,935,721 | |||||||||||
| ||||||||||||||||
Mishawaka (City of), IN (Silver Birch of Mishwaka); Series 2017, RB(e) | 5.10 | % | 01/01/2032 | 465 | 416,550 | |||||||||||
| ||||||||||||||||
Whiting (City of), IN (BP Products North America, Inc.); Series 2015, RB(a)(f) | 4.40 | % | 06/10/2031 | 1,000 | 1,018,043 | |||||||||||
| ||||||||||||||||
11,771,897 | ||||||||||||||||
| ||||||||||||||||
Iowa–1.77% | ||||||||||||||||
Ackley (City of), IA (Grand Jivante); Series 2018 A, RB | 4.50 | % | 08/01/2033 | 600 | 500,040 | |||||||||||
| ||||||||||||||||
Clear Lake (City of), IA (Timbercrest Apartments, LLC); Series 2018, RB | 4.30 | % | 10/01/2028 | 660 | 633,214 | |||||||||||
| ||||||||||||||||
Iowa (State of) Finance Authority (Alcoa, Inc.); Series 2012, RB | 4.75 | % | 08/01/2042 | 5,000 | 4,957,392 | |||||||||||
| ||||||||||||||||
Iowa (State of) Finance Authority (Iowa Fertilizer Co.); Series 2022, Ref. RB | 5.00 | % | 12/01/2050 | 5,410 | 5,699,296 | |||||||||||
| ||||||||||||||||
PEFA, Inc.; Series 2019, RB(a) | 5.00 | % | 09/01/2026 | 10,000 | 10,213,767 | |||||||||||
| ||||||||||||||||
22,003,709 | ||||||||||||||||
| ||||||||||||||||
Kansas–0.41% | ||||||||||||||||
Pittsburgh (City of), KS (North Broadway - Pittsburgh Town Center); Series 2006, RB | 4.80 | % | 04/01/2027 | 170 | 143,852 | |||||||||||
| ||||||||||||||||
Wichita (City of), KS (Kansas Masonic Home); | ||||||||||||||||
Series 2016 II-A, RB (Acquired 05/01/2017; Cost $499,278)(b)(c) | 4.25 | % | 12/01/2024 | 500 | 105,000 | |||||||||||
| ||||||||||||||||
Series 2016 II-A, RB (Acquired 06/24/2016-11/06/2019; Cost $1,846,674)(b)(c) | 5.00 | % | 12/01/2031 | 1,800 | 378,000 | |||||||||||
| ||||||||||||||||
Series 2016 II-A, RB (Acquired 06/24/2016-02/20/2018; Cost $1,013,149)(b)(c) | 5.25 | % | 12/01/2036 | 1,000 | 210,000 | |||||||||||
| ||||||||||||||||
Wichita (City of), KS (Presbyterian Manors, Inc.); | ||||||||||||||||
Series 2018 I, Ref. RB | 5.00 | % | 05/15/2028 | 935 | 895,998 | |||||||||||
| ||||||||||||||||
Series 2019, Ref. RB | 5.00 | % | 05/15/2027 | 2,330 | 2,253,732 | |||||||||||
| ||||||||||||||||
Series 2019, Ref. RB | 5.00 | % | 05/15/2028 | 1,220 | 1,169,110 | |||||||||||
| ||||||||||||||||
5,155,692 | ||||||||||||||||
| ||||||||||||||||
Kentucky–0.62% | ||||||||||||||||
Christian (County of), KY (Jennie Stuart Medical Center, Inc.); | ||||||||||||||||
Series 2016, Ref. RB | 5.00 | % | 02/01/2026 | 320 | 325,574 | |||||||||||
| ||||||||||||||||
Series 2016, Ref. RB | 5.50 | % | 02/01/2044 | 2,170 | 2,199,382 | |||||||||||
| ||||||||||||||||
Kentucky (Commonwealth of) Economic Development Finance Authority (Christian Care Communities); Series 2021, Ref. RB | 4.25 | % | 07/01/2031 | 1,000 | 895,772 | |||||||||||
| ||||||||||||||||
Kentucky (Commonwealth of) Economic Development Finance Authority (Next Generation Kentucky Information Highway); Series 2015 A, RB | 5.00 | % | 07/01/2030 | 1,000 | 1,012,931 | |||||||||||
|
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 | |||||||||||||
| ||||||||||||||||
Kentucky–(continued) | ||||||||||||||||
Kentucky (Commonwealth of) Economic Development Finance Authority (Rosedale Green); Series 2015, Ref. RB | 5.00 | % | 11/15/2025 | $ | 260 | $ | 256,497 | |||||||||
| ||||||||||||||||
Kentucky (Commonwealth of) Public Energy Authority; Series 2024 A, RB(a) | 5.00 | % | 07/01/2030 | 2,850 | 2,992,854 | |||||||||||
| ||||||||||||||||
7,683,010 | ||||||||||||||||
| ||||||||||||||||
Louisiana–1.98% | ||||||||||||||||
Louisiana (State of) Local Government Environmental Facilities & Community Development Authority (Livingston (Parish of), LA Gomesha) (Green Bonds); Series 2018, RB(e) | 5.38 | % | 11/01/2038 | 3,665 | 3,812,645 | |||||||||||
| ||||||||||||||||
Louisiana (State of) Local Government Environmental Facilities & Community Development Authority (Vermilion (Parish of), LA Gomesha) (Green Bonds); Series 2019, RB(e) | 4.63 | % | 11/01/2038 | 1,645 | 1,672,127 | |||||||||||
| ||||||||||||||||
Louisiana (State of) Public Facilities Authority (Encore Academy); | ||||||||||||||||
Series 2021, RB (Acquired 11/03/2021; Cost $ 874,401)(b)(c)(e) | 5.00 | % | 06/01/2031 | 815 | 570,500 | |||||||||||
| ||||||||||||||||
Series 2021, RB (Acquired 11/03/2021; Cost $ 1,734,351)(b)(c)(e) | 5.00 | % | 06/01/2041 | 1,640 | 1,148,000 | |||||||||||
| ||||||||||||||||
New Orleans (City of), LA Aviation Board; Series 2015 B, RB(f) | 5.00 | % | 01/01/2040 | 7,700 | 7,727,330 | |||||||||||
| ||||||||||||||||
New Orleans (City of), LA Aviation Board (Parking Facilities Corp. Consolidated Garage System); Series 2018 A, RB (INS - AGM)(d) | 5.00 | % | 10/01/2036 | 1,115 | 1,194,231 | |||||||||||
| ||||||||||||||||
Series 2018 A, RB (INS - AGM)(d) | 5.00 | % | 10/01/2037 | 755 | 805,016 | |||||||||||
| ||||||||||||||||
Series 2018 A, RB (INS - AGM)(d) | 5.00 | % | 10/01/2038 | 475 | 504,696 | |||||||||||
| ||||||||||||||||
Series 2018 B, Ref. RB (INS - AGM)(d) | 5.00 | % | 10/01/2032 | 1,000 | 1,087,233 | |||||||||||
| ||||||||||||||||
Series 2018 B, Ref. RB (INS - AGM)(d) | 5.00 | % | 10/01/2033 | 715 | 774,960 | |||||||||||
| ||||||||||||||||
Series 2018 B, Ref. RB (INS - AGM)(d) | 5.00 | % | 10/01/2034 | 515 | 557,063 | |||||||||||
| ||||||||||||||||
St. James (Parish of), LA (Nustar Logistics, L.P.); Series 2011, RB(a)(e) | 5.85 | % | 06/01/2025 | 2,000 | 2,036,940 | |||||||||||
| ||||||||||||||||
Tobacco Settlement Financing Corp.; Series 2013 A, Ref. RB | 5.25 | % | 05/15/2035 | 2,780 | 2,802,109 | |||||||||||
| ||||||||||||||||
24,692,850 | ||||||||||||||||
| ||||||||||||||||
Maryland–0.37% | ||||||||||||||||
Baltimore (City of), MD (Convention Center Hotel); | ||||||||||||||||
Series 2017, Ref. RB | 5.00 | % | 09/01/2026 | 2,160 | 2,162,021 | |||||||||||
| ||||||||||||||||
Series 2017, Ref. RB | 5.00 | % | 09/01/2027 | 1,100 | 1,101,521 | |||||||||||
| ||||||||||||||||
Baltimore (City of), MD (East Baltimore Research Park); Series 2017, Ref. RB | 4.00 | % | 09/01/2027 | 425 | 417,754 | |||||||||||
| ||||||||||||||||
Howard (County of), MD (Downtown Columbia); Series 2017 A, RB(e) | 4.00 | % | 02/15/2028 | 425 | 421,211 | |||||||||||
| ||||||||||||||||
Maryland (State of) Health & Higher Educational Facilities Authority (Green Street Academy); Series 2017 A, RB(e) | 5.00 | % | 07/01/2027 | 480 | 482,976 | |||||||||||
| ||||||||||||||||
Maryland (State of) Health & Higher Educational Facilities Authority (Johns Hopkins Medical Institutions Parking Facilities); Series 1996, RB (INS - AMBAC)(d) | 5.50 | % | 07/01/2026 | 30 | 30,211 | |||||||||||
| ||||||||||||||||
4,615,694 | ||||||||||||||||
| ||||||||||||||||
Massachusetts–1.11% | ||||||||||||||||
Ashland (Town of), MA; | ||||||||||||||||
Series 2022, GO Bonds | 4.00 | % | 08/01/2040 | 1,830 | 1,909,988 | |||||||||||
| ||||||||||||||||
Series 2022, GO Bonds | 4.00 | % | 08/01/2042 | 1,000 | 1,033,011 | |||||||||||
| ||||||||||||||||
Lynn Housing Authority & Neighborhood Development; | ||||||||||||||||
Series 2018, Ref. RB | 3.75 | % | 10/01/2024 | 250 | 248,403 | |||||||||||
| ||||||||||||||||
Series 2018, Ref. RB | 4.00 | % | 10/01/2025 | 200 | 199,999 | |||||||||||
| ||||||||||||||||
Series 2018, Ref. RB | 4.00 | % | 10/01/2026 | 100 | 100,005 | |||||||||||
| ||||||||||||||||
Series 2018, Ref. RB | 4.00 | % | 10/01/2027 | 150 | 150,012 | |||||||||||
| ||||||||||||||||
Series 2018, Ref. RB | 4.25 | % | 10/01/2028 | 320 | 320,051 | |||||||||||
| ||||||||||||||||
Series 2018, Ref. RB | 4.38 | % | 10/01/2029 | 385 | 385,074 | |||||||||||
| ||||||||||||||||
Series 2018, Ref. RB | 4.50 | % | 10/01/2030 | 690 | 690,149 | |||||||||||
| ||||||||||||||||
Massachusetts (Commonwealth of) Development Finance Agency (Atrius Health); Series 2015, Ref. RB | 5.00 | % | 01/01/2041 | 4,280 | 4,296,316 | |||||||||||
| ||||||||||||||||
Massachusetts (Commonwealth of) Development Finance Agency (Boston Medical Center) (Green Bonds); Series 2015, RB | 5.00 | % | 07/01/2044 | 750 | 750,263 | |||||||||||
| ||||||||||||||||
Massachusetts (Commonwealth of) Development Finance Agency (Lawrence General Hospital); Series 2017, Ref. RB | 5.00 | % | 07/01/2028 | 675 | 654,073 | |||||||||||
| ||||||||||||||||
Massachusetts (Commonwealth of) Development Finance Agency (Linden Ponds, Inc. Facility); Series 2018, RB(e) | 5.00 | % | 11/15/2033 | 1,500 | 1,574,189 | |||||||||||
| ||||||||||||||||
Massachusetts (Commonwealth of) Development Finance Agency (Newbridge Charles, Inc.); Series 2017, Ref. RB(e) | 5.00 | % | 10/01/2047 | 1,500 | 1,493,768 | |||||||||||
| ||||||||||||||||
13,805,301 | ||||||||||||||||
|
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 | |||||||||||||
| ||||||||||||||||
Michigan–1.70% | ||||||||||||||||
Advanced Technology Academy; | ||||||||||||||||
Series 2019, Ref. RB | 3.88 | % | 11/01/2029 | $ | 1,210 | $ | 1,160,845 | |||||||||
| ||||||||||||||||
Series 2019, Ref. RB | 5.00 | % | 11/01/2034 | 1,200 | 1,216,440 | |||||||||||
| ||||||||||||||||
Detroit (City of), MI; | ||||||||||||||||
Series 2014 B-1, GO Bonds | 4.00 | % | 04/01/2044 | 2,500 | 1,857,263 | |||||||||||
| ||||||||||||||||
Series 2018, GO Bonds | 5.00 | % | 04/01/2026 | 1,000 | 1,020,366 | |||||||||||
| ||||||||||||||||
Ecorse (City of), MI; Series 2011, GO Bonds | 5.80 | % | 11/01/2026 | 1,100 | 1,101,440 | |||||||||||
| ||||||||||||||||
Ivywood Classical Academy; Series 2023, RB | 5.00 | % | 01/01/2034 | 1,830 | 1,847,782 | |||||||||||
| ||||||||||||||||
Kalamazoo Economic Development Corp. (Friendship Village of Kalamazoo); Series 2021, Ref. RB(e) | 5.00 | % | 08/15/2031 | 990 | 946,652 | |||||||||||
| ||||||||||||||||
Michigan (State of) Finance Authority (Madison Academy); Series 2021, Ref. RB | 4.25 | % | 12/01/2039 | 1,515 | 1,217,997 | |||||||||||
| ||||||||||||||||
Michigan (State of) Finance Authority (Trinity Health Credit Group); Series 2019 A, Ref. RB | 4.00 | % | 12/01/2049 | 1,145 | 1,093,950 | |||||||||||
| ||||||||||||||||
Michigan (State of) Strategic Fund (Evangelical Homes); Series 2013, Ref. RB | 5.50 | % | 06/01/2047 | 2,880 | 2,478,379 | |||||||||||
| ||||||||||||||||
Michigan (State of) Strategic Fund (Friendship Village of Kalamazoo); Series 2021, Ref. RB(e) | 5.00 | % | 08/15/2031 | 690 | 659,787 | |||||||||||
| ||||||||||||||||
Michigan (State of) Strategic Fund (Green Bonds); Series 2021, RB(a)(f) | 4.00 | % | 10/01/2026 | 5,610 | 5,626,209 | |||||||||||
| ||||||||||||||||
Waterford Township Economic Development Corp. (Canterbury Health Care, Inc.); Series 2016 A, | 5.00 | % | 07/01/2026 | 980 | 917,840 | |||||||||||
| ||||||||||||||||
21,144,950 | ||||||||||||||||
| ||||||||||||||||
Minnesota–1.32% | ||||||||||||||||
Bethel (City of), MN (Benedictine Health System - St. Peter Communities); Series 2018 A, Ref. RB | 5.00 | % | 12/01/2033 | 1,250 | 1,200,509 | |||||||||||
| ||||||||||||||||
Bethel (City of), MN (Spectrum High School); Series 2017 A, Ref. RB | 3.50 | % | 07/01/2027 | 500 | 481,705 | |||||||||||
| ||||||||||||||||
Brooklyn Park (City of), MN (Athlos Leadership Academy); | ||||||||||||||||
Series 2015 A, RB | 4.75 | % | 07/01/2025 | 190 | 187,192 | |||||||||||
| ||||||||||||||||
Series 2015 A, RB | 5.25 | % | 07/01/2030 | 580 | 564,455 | |||||||||||
| ||||||||||||||||
Series 2015, RB | 5.50 | % | 07/01/2035 | 665 | 638,948 | |||||||||||
| ||||||||||||||||
Series 2015, RB | 5.75 | % | 07/01/2046 | 1,400 | 1,261,857 | |||||||||||
| ||||||||||||||||
Dakota (County of), MN Community Development Agency (Sanctuary at West St. Paul); Series 2015, RB | 5.75 | % | 08/01/2030 | 845 | 644,770 | |||||||||||
| ||||||||||||||||
Deephaven (City of), MN (Seven Hills Preparatory Academy); | ||||||||||||||||
Series 2017, RB | 4.38 | % | 10/01/2027 | 455 | 445,779 | |||||||||||
| ||||||||||||||||
Series 2017, RB | 5.00 | % | 10/01/2037 | 1,000 | 945,255 | |||||||||||
| ||||||||||||||||
Duluth (City of), MN Housing & Redevelopment Authority (Duluth Public Schools Academy); | ||||||||||||||||
Series 2018 A, Ref. RB | 4.25 | % | 11/01/2028 | 1,680 | 1,595,945 | |||||||||||
| ||||||||||||||||
Series 2018 A, Ref. RB | 5.00 | % | 11/01/2033 | 1,070 | 1,027,923 | |||||||||||
| ||||||||||||||||
Minneapolis (City of), MN (Spero Academy); | ||||||||||||||||
Series 2017 A, RB(e) | 5.50 | % | 07/01/2027 | 590 | 594,845 | |||||||||||
| ||||||||||||||||
Series 2017 A, RB(e) | 6.00 | % | 07/01/2032 | 1,080 | 1,108,628 | |||||||||||
| ||||||||||||||||
Ramsey (City of), MN; Series 2022 A, Ref. RB | 5.00 | % | 06/01/2032 | 2,000 | 2,023,740 | |||||||||||
| ||||||||||||||||
Rochester (City of), MN (Homestead at Rochester, Inc.); Series 2013 A, RB | 6.88 | % | 12/01/2048 | 1,000 | 999,892 | |||||||||||
| ||||||||||||||||
St. Louis Park (City of), MN (Place Via Sol Project); Series 2018, RB (Acquired 12/26/2018; Cost $1,927,397)(a)(b)(c)(e) | 6.00 | % | 07/01/2027 | 1,927 | 192,740 | |||||||||||
| ||||||||||||||||
St. Paul (City of), MN Housing & Redevelopment Authority (Great River School); Series 2017 A, RB(e) | 5.25 | % | 07/01/2033 | 140 | 142,378 | |||||||||||
| ||||||||||||||||
St. Paul (City of), MN Housing & Redevelopment Authority (Higher Ground Academy); Series 2023, Ref. RB | 4.25 | % | 12/01/2032 | 1,205 | 1,212,050 | |||||||||||
| ||||||||||||||||
St. Paul (City of), MN Housing & Redevelopment Authority (Hmong College Prep Academy); | 5.00 | % | 09/01/2026 | 625 | 628,816 | |||||||||||
| ||||||||||||||||
St. Paul (City of), MN Housing & Redevelopment Authority (Rossy & Richard Shaller Family Sholom East Campus); | ||||||||||||||||
Series 2018, Ref. RB | 4.00 | % | 10/01/2031 | 250 | 217,829 | |||||||||||
| ||||||||||||||||
Series 2018, Ref. RB | 4.13 | % | 10/01/2033 | 250 | 212,303 | |||||||||||
| ||||||||||||||||
Wayzata (City of), MN (Folkstone Senior Living Co.); Series 2019, Ref. RB | 5.00 | % | 08/01/2035 | 100 | 101,057 | |||||||||||
| ||||||||||||||||
16,428,616 | ||||||||||||||||
| ||||||||||||||||
Mississippi–0.68% | ||||||||||||||||
Mississippi (State of) Development Bank (Jackson County Gomesa); Series 2021, RB(e) | 3.63 | % | 11/01/2036 | 3,350 | 3,112,261 | |||||||||||
| ||||||||||||||||
Mississippi (State of) Hospital Equipment & Facilities Authority (Baptist Memorial Health Care); Series 2016, RB | 5.00 | % | 09/01/2046 | 3,870 | 3,898,810 | |||||||||||
| ||||||||||||||||
Tunica (County of), MS; Series 2019, Ref. RB | 6.00 | % | 10/01/2040 | 1,575 | 1,434,146 | |||||||||||
| ||||||||||||||||
8,445,217 | ||||||||||||||||
|
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 | |||||||||||||
| ||||||||||||||||
Missouri–1.73% | ||||||||||||||||
Branson (City of), MO Industrial Development Authority (Branson Shoppes Redevelopment); | ||||||||||||||||
Series 2017 A, Ref. RB | 4.00% | 11/01/2025 | $ | 1,440 | $ | 1,420,148 | ||||||||||
| ||||||||||||||||
Series 2017 A, Ref. RB | 4.00% | 11/01/2026 | 750 | 732,587 | ||||||||||||
| ||||||||||||||||
Cape Girardeau (County of), MO Industrial Development Authority (Procter & Gamble Paper Products Co. (The)); Series 1998, RB(f) | 5.30% | 05/15/2028 | 30 | 30,051 | ||||||||||||
| ||||||||||||||||
I-470 Western Gateway Transportation Development District; Series 2019 A, RB(e) | 4.50% | 12/01/2029 | 1,485 | 1,461,401 | ||||||||||||
| ||||||||||||||||
Kansas City (City of), MO Industrial Development Authority (Ward Parkway Center Community Improvement District); | ||||||||||||||||
Series 2016 A, Ref. RB(e) | 4.25% | 04/01/2026 | 145 | 142,333 | ||||||||||||
| ||||||||||||||||
Series 2016 A, Ref. RB(e) | 5.00% | 04/01/2036 | 2,000 | 1,938,342 | ||||||||||||
| ||||||||||||||||
Kansas City (City of), MO Land Clearance for Redevelopment Authority (Convention Center Hotel); Series 2018 B, RB(e) | 4.38% | 02/01/2031 | 855 | 816,122 | ||||||||||||
| ||||||||||||||||
Kirkwood (City of), MO Industrial Development Authority (Aberdeen Heights); | ||||||||||||||||
Series 2017 A, Ref. IDR | 5.00% | 05/15/2026 | 1,000 | 971,629 | ||||||||||||
| ||||||||||||||||
Series 2017 A, Ref. IDR | 5.00% | 05/15/2027 | 800 | 766,888 | ||||||||||||
| ||||||||||||||||
Series 2017 A, Ref. RB | 5.00% | 05/15/2024 | 1,700 | 1,695,379 | ||||||||||||
| ||||||||||||||||
Series 2017 A, Ref. RB | 5.25% | 05/15/2037 | 1,000 | 867,043 | ||||||||||||
| ||||||||||||||||
Series 2017 A, Ref. RB | 5.25% | 05/15/2042 | 1,000 | 821,374 | ||||||||||||
| ||||||||||||||||
Lee’s Summit (City of), MO Industrial Development Authority (John Knox Village Obligated Group); | ||||||||||||||||
Series 2014 A, RB | 5.00% | 08/15/2034 | 490 | 469,959 | ||||||||||||
| ||||||||||||||||
Series 2014 A, RB | 5.25% | 08/15/2039 | 5,235 | 4,872,905 | ||||||||||||
| ||||||||||||||||
Maryland Heights (City of), MO (Westport Plaza Redevelopment); | ||||||||||||||||
Series 2020, RB | 3.63% | 11/01/2031 | 615 | 608,690 | ||||||||||||
| ||||||||||||||||
Series 2020, RB | 4.13% | 11/01/2038 | 2,500 | 2,426,185 | ||||||||||||
| ||||||||||||||||
Northpark Lane Community Improvement District; Series 2018, RB | 4.50% | 11/01/2036 | 290 | 289,893 | ||||||||||||
| ||||||||||||||||
St. Charles (County of), MO Industrial Development Authority (Suemandy/Mid-Rivers Community Improvement District); Series 2016, RB(e) | 4.25% | 10/01/2034 | 1,325 | 1,192,280 | ||||||||||||
| ||||||||||||||||
21,523,209 | ||||||||||||||||
| ||||||||||||||||
Montana–0.20% | ||||||||||||||||
Montana Board of Housing (Baxter Apartments Projects); Series 2023, RB(a) | 6.00% | 06/01/2025 | 2,500 | 2,518,429 | ||||||||||||
| ||||||||||||||||
Nevada–0.15% | ||||||||||||||||
Las Vegas (City of), NV Special Improvement District No. 815; Series 2020, RB | 4.75% | 12/01/2040 | 340 | 326,793 | ||||||||||||
| ||||||||||||||||
Nevada (State of) Department of Business & Industry (Doral Academy of Nevada); | ||||||||||||||||
Series 2017 A, RB | 5.00% | 07/15/2027 | 285 | 287,801 | ||||||||||||
| ||||||||||||||||
Series 2017 A, RB | 5.00% | 07/15/2037 | 500 | 502,924 | ||||||||||||
| ||||||||||||||||
North Las Vegas (City of), NV Special Improvement District No. 66 (Villages at Tule Springs Village 1); Series 2022, RB(e) | 5.50% | 06/01/2037 | 750 | 766,140 | ||||||||||||
| ||||||||||||||||
1,883,658 | ||||||||||||||||
| ||||||||||||||||
New Hampshire–0.52% | ||||||||||||||||
New Hampshire (State of) Business Finance Authority (Covanta); Series 2020 A, Ref. RB(a)(e) | 3.63% | 07/02/2040 | 3,455 | 2,653,277 | ||||||||||||
| ||||||||||||||||
New Hampshire (State of) Business Finance Authority (Social Bonds); Series 2022-2A, RB | 4.00% | 10/20/2036 | 3,929 | 3,755,905 | ||||||||||||
| ||||||||||||||||
New Hampshire (State of) Health and Education Facilities Authority (Hillside Village); | ||||||||||||||||
Series 2017 A, RB (Acquired 06/12/2017; Cost $1,280,274)(b)(c)(e) | 5.25% | 07/01/2027 | 1,280 | 25,606 | ||||||||||||
| ||||||||||||||||
Series 2017 B, RB (Acquired 06/12/2017; Cost $1,175,268)(b)(c)(e) | 4.13% | 07/01/2024 | 1,175 | 23,505 | ||||||||||||
| ||||||||||||||||
6,458,293 | ||||||||||||||||
| ||||||||||||||||
New Jersey–0.69% | ||||||||||||||||
New Jersey (State of) Economic Development Authority (Golden Door Charter School); Series 2018 A, RB(e) | 5.13% | 11/01/2029 | 205 | 205,450 | ||||||||||||
| ||||||||||||||||
New Jersey (State of) Economic Development Authority (Hatikvah International Academy Charter School); Series 2017 A, RB(e) | 5.00% | 07/01/2027 | 330 | 329,078 | ||||||||||||
| ||||||||||||||||
New Jersey (State of) Economic Development Authority (Marion P. Thomas Charter School); Series 2018 A, RB(e) | 4.75% | 10/01/2028 | 1,105 | 1,095,119 | ||||||||||||
| ||||||||||||||||
New Jersey (State of) Economic Development Authority (Paterson Charter School for Science and Technology, Inc.); Series 2012 C, RB | 5.00% | 07/01/2032 | 1,275 | 1,274,986 | ||||||||||||
| ||||||||||||||||
New Jersey (State of) Economic Development Authority (Teaneck Community Charter School); Series 2017 A, Ref. RB(e) | 4.25% | 09/01/2027 | 165 | 164,365 | ||||||||||||
|
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 | |||||||||||||
| ||||||||||||||||
New Jersey–(continued) | ||||||||||||||||
New Jersey (State of) Transportation Trust Fund Authority; | ||||||||||||||||
Series 2008 A, RB(g) | 0.00% | 12/15/2028 | $ | 715 | $ | 615,065 | ||||||||||
| ||||||||||||||||
Series 2008 A, RB(g) | 0.00% | 12/15/2035 | 1,000 | 661,450 | ||||||||||||
| ||||||||||||||||
Series 2009 A, RB(g) | 0.00% | 12/15/2032 | 1,465 | 1,097,823 | ||||||||||||
| ||||||||||||||||
Series 2018 A, RN(h)(i) | 5.00% | 06/15/2029 | 1,000 | 1,043,174 | ||||||||||||
| ||||||||||||||||
Series 2018 A, RN(h)(i) | 5.00% | 06/15/2030 | 2,000 | 2,084,810 | ||||||||||||
| ||||||||||||||||
8,571,320 | ||||||||||||||||
| ||||||||||||||||
New Mexico–0.10% | ||||||||||||||||
Winrock Town Center Tax Increment Development District No. 1; Series 2022, Ref. RB(e) | 4.00% | 05/01/2033 | 1,250 | 1,220,098 | ||||||||||||
| ||||||||||||||||
New York–6.90% | ||||||||||||||||
Allegany County Capital Resource Corp. (Houghton College); Series 2022 A, Ref. RB | 5.00% | 12/01/2032 | 1,385 | 1,416,587 | ||||||||||||
| ||||||||||||||||
Buffalo & Erie County Industrial Land Development Corp. (Medaille College); | ||||||||||||||||
Series 2018, Ref. RB (Acquired 08/16/2018; Cost $387,536)(b)(c)(e) | 5.00% | 10/01/2028 | 375 | 180,000 | ||||||||||||
| ||||||||||||||||
Series 2018, Ref. RB (Acquired 08/16/2018; Cost $2,471,850)(b)(c)(e) | 5.00% | 10/01/2038 | 2,445 | 1,173,600 | ||||||||||||
| ||||||||||||||||
Build NYC Resource Corp. (Brooklyn Navy Yard); | ||||||||||||||||
Series 2019, Ref. RB(e)(f) | 5.25% | 12/31/2033 | 3,000 | 2,740,713 | ||||||||||||
| ||||||||||||||||
Series 2019, Ref. RB(e)(f) | 5.50% | 12/31/2040 | 5,000 | 4,225,395 | ||||||||||||
| ||||||||||||||||
Build NYC Resource Corp. (Shefa School); Series 2021 A, RB(e) | 2.50% | 06/15/2031 | 375 | 323,143 | ||||||||||||
| ||||||||||||||||
Build NYC Resource Corp. (Unity Preparatory Charter School of Brooklyn); Series 2023, RB(e) | 5.25% | 06/15/2043 | 525 | 531,497 | ||||||||||||
| ||||||||||||||||
Erie Tobacco Asset Securitization Corp.; Series 2005 A, RB | 5.00% | 06/01/2045 | 3,210 | 3,119,732 | ||||||||||||
| ||||||||||||||||
Metropolitan Transportation Authority; Subseries 2015 C-1, Ref. RB | 5.25% | 11/15/2031 | 2,000 | 2,060,521 | ||||||||||||
| ||||||||||||||||
Nassau (County of), NY Industrial Development Agency (Amsterdam at Harborside); | ||||||||||||||||
Series 2021, RB (Acquired 01/19/2016-02/28/2018; Cost $1,089,980)(b)(c) | 5.00% | 01/01/2058 | 967 | 289,667 | ||||||||||||
| ||||||||||||||||
Series 2021, Ref. RB (Acquired 09/07/2021; Cost $445,000)(b)(c)(e) | 9.00% | 01/01/2041 | 445 | 445,000 | ||||||||||||
| ||||||||||||||||
New York & New Jersey (States of) Port Authority; One Hundred Eighty Third Series 2014, RB | 4.00% | 12/15/2038 | 2,000 | 1,989,876 | ||||||||||||
| ||||||||||||||||
New York (City of), NY Municipal Water Finance Authority; Series 2023 D, Ref. RB | 4.13% | 06/15/2047 | 3,000 | 3,005,579 | ||||||||||||
| ||||||||||||||||
New York (City of), NY Transitional Finance Authority; Series 2024 F-1, RB | 5.00% | 02/01/2045 | 5,000 | 5,576,427 | ||||||||||||
| ||||||||||||||||
New York (State of) Dormitory Authority (Montefiore Obligated Group); Series 2018 A, Ref. RB | 5.00% | 08/01/2035 | 1,250 | 1,296,069 | ||||||||||||
| ||||||||||||||||
New York Counties Tobacco Trust II; Series 2001, RB | 5.63% | 06/01/2035 | 35 | 35,657 | ||||||||||||
| ||||||||||||||||
New York Counties Tobacco Trust IV; Series 2010 A, RB(e) | 6.25% | 06/01/2041 | 3,000 | 3,000,711 | ||||||||||||
| ||||||||||||||||
New York Counties Tobacco Trust VI; | ||||||||||||||||
| ||||||||||||||||
Series 2016 A, Ref. RB | 5.63% | 06/01/2035 | 1,030 | 1,058,696 | ||||||||||||
| ||||||||||||||||
Series 2016 A, Ref. RB | 6.00% | 06/01/2043 | 3,055 | 3,145,728 | ||||||||||||
| ||||||||||||||||
New York Liberty Development Corp. (3 World Trade Center); Series 2014, Class 3, Ref. RB(e) | 7.25% | 11/15/2044 | 5,400 | 5,444,736 | ||||||||||||
| ||||||||||||||||
New York Transportation Development Corp.; | ||||||||||||||||
Series 2023, RB(f) | 5.50% | 06/30/2038 | 2,000 | 2,207,690 | ||||||||||||
| ||||||||||||||||
Series 2023, RB(f) | 5.50% | 06/30/2039 | 1,000 | 1,100,149 | ||||||||||||
| ||||||||||||||||
Series 2023, RB(f) | 5.50% | 06/30/2040 | 875 | 957,616 | ||||||||||||
| ||||||||||||||||
New York Transportation Development Corp. (American Airlines, Inc. John F. Kennedy International Airport); Series 2020, Ref. RB(f) | 5.25% | 08/01/2031 | 2,755 | 2,906,348 | ||||||||||||
| ||||||||||||||||
New York Transportation Development Corp. (American Airlines, Inc.); | ||||||||||||||||
Series 2016, Ref. RB(f) | 5.00% | 08/01/2026 | 4,220 | 4,221,077 | ||||||||||||
| ||||||||||||||||
Series 2016, Ref. RB(f) | 5.00% | 08/01/2031 | 8,680 | 8,680,416 | ||||||||||||
| ||||||||||||||||
Series 2021, Ref. RB(f) | 3.00% | 08/01/2031 | 545 | 507,702 | ||||||||||||
| ||||||||||||||||
New York Transportation Development Corp. (Delta Air Lines, Inc. LaGuardia Airport Terminals C&D Redevelopment); | ||||||||||||||||
Series 2018, RB(f) | 5.00% | 01/01/2032 | 4,315 | 4,461,955 | ||||||||||||
| ||||||||||||||||
Series 2020, RB(f) | 4.00% | 10/01/2030 | 6,500 | 6,497,172 | ||||||||||||
| ||||||||||||||||
Series 2020, RB(f) | 5.00% | 10/01/2035 | 5,000 | 5,276,870 | ||||||||||||
| ||||||||||||||||
New York Transportation Development Corp. (LaGuardia Airport Terminal B Redevelopment); Series 2023, RB(f) | 5.63% | 04/01/2040 | 2,500 | 2,716,348 | ||||||||||||
| ||||||||||||||||
Oneida Indian Nation; Series 2024 B, RB(e) | 6.00% | 09/01/2043 | 1,400 | 1,460,355 | ||||||||||||
| ||||||||||||||||
Tompkins County Development Corp. (Tompkins Cortland Community College Foundation, Inc.); | ||||||||||||||||
Series 2013 A, RB(b) | 5.00% | 07/01/2027 | 1,000 | 350,000 | ||||||||||||
| ||||||||||||||||
Series 2013 A, RB(b) | 5.00% | 07/01/2032 | 1,000 | 350,000 | ||||||||||||
| ||||||||||||||||
Westchester (County of), NY Industrial Development Agency (Million Air Two LLC General Aviation Facilities); Series 2017 A, RB(e)(f) | 7.00% | 06/01/2046 | 3,500 | 3,148,401 | ||||||||||||
| ||||||||||||||||
85,901,433 | ||||||||||||||||
|
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 | |||||||||||||
| ||||||||||||||||
North Dakota–0.30% | ||||||||||||||||
Burleigh (County of), ND (University of Mary); Series 2016, RB | 4.38% | 04/15/2026 | $ | 660 | $ | 653,873 | ||||||||||
| ||||||||||||||||
Grand Forks (City of), ND (Altru Health System); Series 2021, Ref. RB | 4.00% | 12/01/2040 | 3,375 | 3,088,841 | ||||||||||||
| ||||||||||||||||
3,742,714 | ||||||||||||||||
| ||||||||||||||||
Ohio–2.93% | ||||||||||||||||
Buckeye Tobacco Settlement Financing Authority; | ||||||||||||||||
Series 2020 A-2, Ref. RB | 3.00% | 06/01/2048 | 2,755 | 2,108,095 | ||||||||||||
| ||||||||||||||||
Series 2020 B-2, Ref. RB | 5.00% | 06/01/2055 | 2,470 | 2,357,264 | ||||||||||||
| ||||||||||||||||
Cleveland (City of) & Cuyahoga (County of), OH Port Authority (Euclid Avenue Development Corp.); Series 2014, Ref. RB | 5.00% | 08/01/2029 | 600 | 602,868 | ||||||||||||
| ||||||||||||||||
Cleveland (City of) & Cuyahoga (County of), OH Port Authority (Flats East Bank); Series 2010, RB | 6.00% | 11/15/2035 | 1,000 | 1,001,755 | ||||||||||||
| ||||||||||||||||
Cleveland (City of), OH (Continental Airlines, Inc.); Series 1998, RB(f) | 5.38% | 09/15/2027 | 485 | 485,076 | ||||||||||||
| ||||||||||||||||
Cuyahoga (County of), OH (MetroHealth System); | ||||||||||||||||
Series 2017, Ref. RB | 5.00% | 02/15/2031 | 2,500 | 2,572,560 | ||||||||||||
| ||||||||||||||||
Series 2017, Ref. RB | 5.00% | 02/15/2037 | 5,470 | 5,586,787 | ||||||||||||
| ||||||||||||||||
Franklin (County of), OH (Wesley Communities); Series 2020, Ref. RB | 5.25% | 11/15/2040 | 1,500 | 1,451,294 | ||||||||||||
| ||||||||||||||||
Greater Cincinnati (Port of), OH Development Authority; Series 2004, RB | 6.40% | 02/15/2034 | 1,950 | 1,939,304 | ||||||||||||
| ||||||||||||||||
Greater Cincinnati (Port of), OH Development Authority (Convention Center Hotel Acquisition and Demolition); Series 2023, Ref. RB(e) | 5.00% | 05/01/2025 | 2,500 | 2,492,984 | ||||||||||||
| ||||||||||||||||
Greater Cincinnati (Port of), OH Development Authority (IPS Cincinnati LLC); Series 2021, RB(a) | 4.38% | 06/15/2026 | 1,700 | 1,654,450 | ||||||||||||
| ||||||||||||||||
Muskingum (County of), OH (Genesis Healthcare System); | ||||||||||||||||
Series 2013, RB | 5.00% | 02/15/2033 | 1,000 | 999,647 | ||||||||||||
| ||||||||||||||||
Series 2013, RB | 5.00% | 02/15/2044 | 4,880 | 4,526,980 | ||||||||||||
| ||||||||||||||||
Series 2013, RB | 5.00% | 02/15/2048 | 5,300 | 4,802,571 | ||||||||||||
| ||||||||||||||||
Ohio (State of) (Portsmouth Bypass); Series 2015, RB(f) | 5.00% | 12/31/2039 | 2,290 | 2,299,093 | ||||||||||||
| ||||||||||||||||
Ohio (State of) Air Quality Development Authority (Pratt Paper LLC); Series 2017, RB(e)(f) | 4.25% | 01/15/2038 | 250 | 246,127 | ||||||||||||
| ||||||||||||||||
Ohio (State of) Higher Educational Facility Commission; Series 2015, Ref. RB | 5.00% | 07/01/2041 | 680 | 689,637 | ||||||||||||
| ||||||||||||||||
RiverSouth Authority; Series 2007 A, RB | 5.75% | 12/01/2027 | 495 | 495,058 | ||||||||||||
| ||||||||||||||||
Youngstown (City of), OH Metropolitan Housing Authority; Series 2014, RB | 4.00% | 12/15/2024 | 140 | 140,027 | ||||||||||||
| ||||||||||||||||
36,451,577 | ||||||||||||||||
| ||||||||||||||||
Oklahoma–0.85% | ||||||||||||||||
Oklahoma (State of) Development Finance Authority (OU Medicine); Series 2018 B, RB (INS - AGM)(d) | 4.00% | 08/15/2048 | 2,430 | 2,225,395 | ||||||||||||
| ||||||||||||||||
Oklahoma (State of) Development Finance Authority (Provident Oklahoma Education Resources, Inc.-Cross Village Student Housing); Series 2017 A, RB(b) | 5.00% | 08/01/2037 | 1,650 | 2,640 | ||||||||||||
| ||||||||||||||||
Tulsa (City of), OK Airports Improvement Trust; Series 2001 C, Ref. RB(f) | 5.50% | 12/01/2035 | 2,000 | 2,000,313 | ||||||||||||
| ||||||||||||||||
Tulsa (City of), OK Airports Improvement Trust (American Airlines Group, Inc.); Series 2015, Ref. RB(a)(f) | 5.00% | 06/01/2025 | 6,340 | 6,354,155 | ||||||||||||
| ||||||||||||||||
10,582,503 | ||||||||||||||||
| ||||||||||||||||
Oregon–0.00% | ||||||||||||||||
Local Oregon Capital Assets Program; Series 2011 C, COP | 4.60% | 06/01/2031 | 35 | 35,015 | ||||||||||||
| ||||||||||||||||
Oregon (State of) (Elderly & Disabled Housing); Series 1993 C, GO Bonds(f) | 5.65% | 08/01/2026 | 5 | 5,008 | ||||||||||||
| ||||||||||||||||
40,023 | ||||||||||||||||
| ||||||||||||||||
Pennsylvania–1.96% | ||||||||||||||||
Allegheny (County of), PA Industrial Development Authority (United States Steel Corp.); Series 2019, Ref. RB | 4.88% | 11/01/2024 | 3,000 | 3,006,076 | ||||||||||||
| ||||||||||||||||
Allentown (City of), PA Neighborhood Improvement Zone Development Authority (615 Waterfront); Series 2021, RB(e) | 6.00% | 05/01/2042 | 670 | 703,999 | ||||||||||||
| ||||||||||||||||
Allentown (City of), PA Neighborhood Improvement Zone Development Authority (City Center); | ||||||||||||||||
Series 2018, RB(e) | 5.00% | 05/01/2028 | 1,000 | 1,033,918 | ||||||||||||
| ||||||||||||||||
Series 2018, RB(e) | 5.00% | 05/01/2033 | 500 | 514,351 | ||||||||||||
| ||||||||||||||||
Chester (County of), PA Industrial Development Authority (Woodlands at Greystone); Series 2018, RB(e) | 4.38% | 03/01/2028 | 180 | 178,882 | ||||||||||||
| ||||||||||||||||
Delaware Valley Regional Finance Authority; Series 1997 B, RB (INS - AMBAC)(d) | 5.70% | 07/01/2027 | 380 | 410,966 | ||||||||||||
| ||||||||||||||||
Franklin (County of), PA Industrial Development Authority (Menno-Haven, Inc.); | ||||||||||||||||
Series 2018, Ref. RB | 5.00% | 12/01/2028 | 630 | 612,863 | ||||||||||||
| ||||||||||||||||
Series 2018, Ref. RB | 5.00% | 12/01/2030 | 910 | 876,645 | ||||||||||||
| ||||||||||||||||
Montgomery (County of), PA Higher Education & Health Authority (Holy Redeemer Health System); Series 2014 A, Ref. RB | 5.00% | 10/01/2024 | 1,165 | 1,161,159 | ||||||||||||
|
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 | |||||||||||||
| ||||||||||||||||
Pennsylvania–(continued) | ||||||||||||||||
Northampton (County of), PA Industrial Development Authority; | ||||||||||||||||
Series 2013 A, RB (Acquired 04/03/2013; Cost $308,057)(c)(k)(l) | 5.00% | 06/30/2027 | $ | 350 | $ | 63,025 | ||||||||||
| ||||||||||||||||
Series 2013, RB(k)(l) | 5.00% | 06/30/2027 | 193 | 34,713 | ||||||||||||
| ||||||||||||||||
Pennsylvania (Commonwealth of) Higher Educational Facilities Authority (Thomas Jefferson University); Series 2015, Ref. RB | 5.25% | 09/01/2050 | 10,080 | 10,153,635 | ||||||||||||
| ||||||||||||||||
Philadelphia (City of), PA Authority for Industrial Development; | ||||||||||||||||
Series 2017, Ref. RB(a)(e)(j) | 5.00% | 03/15/2028 | 115 | 125,244 | ||||||||||||
| ||||||||||||||||
Series 2017, Ref. RB(e) | 5.00% | 03/15/2045 | 1,885 | 1,582,230 | ||||||||||||
| ||||||||||||||||
Philadelphia (City of), PA Authority for Industrial Development (Alliance for Progress Charter School, Inc.); | ||||||||||||||||
Series 2019 A, RB | 4.00% | 06/15/2029 | 765 | 731,886 | ||||||||||||
| ||||||||||||||||
Series 2019 A, RB | 5.00% | 06/15/2039 | 1,840 | 1,758,399 | ||||||||||||
| ||||||||||||||||
Philadelphia (City of), PA Authority for Industrial Development (Wesley Enhanced Living Obligated Group); | ||||||||||||||||
Series 2017, Ref. RB | 5.00% | 07/01/2031 | 500 | 468,936 | ||||||||||||
| ||||||||||||||||
Series 2017, Ref. RB | 5.00% | 07/01/2032 | 1,000 | 928,889 | ||||||||||||
| ||||||||||||||||
24,345,816 | ||||||||||||||||
| ||||||||||||||||
Puerto Rico–8.58% | ||||||||||||||||
Children’s Trust Fund; | ||||||||||||||||
Series 2002, RB | 5.50% | 05/15/2039 | 11,875 | 11,908,568 | ||||||||||||
| ||||||||||||||||
Series 2002, RB | 5.63% | 05/15/2043 | 7,645 | 7,734,132 | ||||||||||||
| ||||||||||||||||
Corp. Para El Financiamiento Publico de Puerto Rico; | ||||||||||||||||
Series 2011, RB(k) | 0.00% | 08/01/2024 | 10,675 | 0 | ||||||||||||
| ||||||||||||||||
Series 2011, RB(k) | 0.00% | 08/01/2025 | 17,475 | 0 | ||||||||||||
| ||||||||||||||||
Series 2011, RB(k) | 0.00% | 08/01/2026 | 6,495 | 0 | ||||||||||||
| ||||||||||||||||
Series 2011, RB(k) | 0.00% | 08/01/2028 | 37,400 | 0 | ||||||||||||
| ||||||||||||||||
Series 2011, RB(k) | 5.50% | 08/01/2031 | 54,770 | 1 | ||||||||||||
| ||||||||||||||||
GDB Debt Recovery Authority of Puerto Rico; Series 2023, RB | 7.50% | 08/20/2040 | 4,395 | 4,175,766 | ||||||||||||
| ||||||||||||||||
PRHTA Custodial Trust; Series 2023, RB(b) | 5.75% | 12/06/2049 | 216 | 76,835 | ||||||||||||
| ||||||||||||||||
PRPBA Custodial Trust; Series 2022, RB | 0.00% | 03/15/2049 | 278 | 3,563 | ||||||||||||
| ||||||||||||||||
Puerto Rico (Commonwealth of); | ||||||||||||||||
Series 2021 A, GO Bonds(g) | 0.00% | 07/01/2024 | 887 | 875,182 | ||||||||||||
| ||||||||||||||||
Series 2021 A, GO Bonds(g) | 0.00% | 07/01/2033 | 2,034 | 1,311,342 | ||||||||||||
| ||||||||||||||||
Series 2021 A-1, GO Bonds | 5.63% | 07/01/2027 | 10,510 | 11,103,205 | ||||||||||||
| ||||||||||||||||
Series 2021 A-1, GO Bonds | 5.63% | 07/01/2029 | 3,000 | 3,253,998 | ||||||||||||
| ||||||||||||||||
Series 2021 A-1, GO Bonds | 4.00% | 07/01/2033 | 3,300 | 3,241,856 | ||||||||||||
| ||||||||||||||||
Series 2021 A-1, GO Bonds | 4.00% | 07/01/2041 | 4,000 | 3,715,335 | ||||||||||||
| ||||||||||||||||
Subseries 2022, RN | 0.00% | 11/01/2043 | 7,515 | 4,405,736 | ||||||||||||
| ||||||||||||||||
Subseries 2022, RN | 0.00% | 11/01/2051 | 2,048 | 1,218,296 | ||||||||||||
| ||||||||||||||||
Puerto Rico (Commonwealth of) Aqueduct & Sewer Authority; Series 2008 A, RB | 6.13% | 07/01/2024 | 337 | 339,163 | ||||||||||||
| ||||||||||||||||
Puerto Rico (Commonwealth of) Electric Power Authority; | ||||||||||||||||
Series 2005 RR, RB (INS - SGI)(d) | 5.00% | 07/01/2025 | 100 | 99,648 | ||||||||||||
| ||||||||||||||||
Series 2005 RR, RB (INS - AGC)(d) | 5.00% | 07/01/2026 | 155 | 154,990 | ||||||||||||
| ||||||||||||||||
Series 2007 TT, RB (INS - NATL)(d) | 5.00% | 07/01/2026 | 165 | 165,097 | ||||||||||||
| ||||||||||||||||
Series 2007 TT, RB(b) | 5.00% | 07/01/2037 | 500 | 132,500 | ||||||||||||
| ||||||||||||||||
Series 2007 UU, Ref. RB (INS - AGC)(d) | 5.00% | 07/01/2026 | 1,435 | 1,435,018 | ||||||||||||
| ||||||||||||||||
Series 2007 VV, Ref. RB (INS - NATL)(d) | 5.25% | 07/01/2025 | 1,705 | 1,695,964 | ||||||||||||
| ||||||||||||||||
Series 2007 VV, Ref. RB (INS - NATL)(d) | 5.25% | 07/01/2030 | 1,000 | 988,289 | ||||||||||||
| ||||||||||||||||
Series 2010 AAA, RB(b) | 5.25% | 07/01/2028 | 5,685 | 1,506,525 | ||||||||||||
| ||||||||||||||||
Series 2010 CCC, RB(b) | 5.25% | 07/01/2026 | 3,520 | 932,800 | ||||||||||||
| ||||||||||||||||
Series 2010 XX, RB(b) | 5.25% | 07/01/2027 | 250 | 66,250 | ||||||||||||
| ||||||||||||||||
Series 2010 ZZ, Ref. RB(b) | 5.25% | 07/01/2025 | 1,180 | 312,700 | ||||||||||||
| ||||||||||||||||
Puerto Rico (Commonwealth of) Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority; Series 2000, RB (Acquired 08/06/2009-01/08/2020; Cost $6,580,000)(b)(c)(f) | 6.63% | 06/01/2026 | 6,580 | 4,606,000 | ||||||||||||
| ||||||||||||||||
Puerto Rico (Commonwealth of) Municipal Finance Agency; | ||||||||||||||||
Series 2002 A, RB (INS - AGM)(d) | 5.00% | 08/01/2027 | 1,075 | 1,081,730 | ||||||||||||
| ||||||||||||||||
Series 2005 A, RB (INS - AGM)(d) | 5.00% | 08/01/2030 | 305 | 306,910 | ||||||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 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 2018 A-1, RB(g) | 0.00% | 07/01/2024 | $ | 211 | $ | 208,687 | ||||||||||
| ||||||||||||||||
Series 2018 A-1, RB(g) | 0.00% | 07/01/2027 | 1,027 | 910,623 | ||||||||||||
| ||||||||||||||||
Series 2018 A-1, RB(g) | 0.00% | 07/01/2029 | 1,003 | 825,981 | ||||||||||||
| ||||||||||||||||
Series 2018 A-1, RB(g) | 0.00% | 07/01/2033 | 11,167 | 7,810,997 | ||||||||||||
| ||||||||||||||||
Series 2018 A-1, RB | 4.50% | 07/01/2034 | 7,162 | 7,208,327 | ||||||||||||
| ||||||||||||||||
Series 2018 A-1, RB | 4.55% | 07/01/2040 | 538 | 542,171 | ||||||||||||
| ||||||||||||||||
Series 2018 A-1, RB(g) | 0.00% | 07/01/2046 | 13,831 | 4,502,909 | ||||||||||||
| ||||||||||||||||
Series 2018 A-1, RB(g) | 0.00% | 07/01/2051 | 11,268 | 2,722,174 | ||||||||||||
| ||||||||||||||||
Series 2019 A-2, RB | 4.33% | 07/01/2040 | 7,975 | 7,938,540 | ||||||||||||
| ||||||||||||||||
Series 2019 A-2, RB | 4.54% | 07/01/2053 | 163 | 157,901 | ||||||||||||
| ||||||||||||||||
Series 2019 A-2, RB | 4.78% | 07/01/2058 | 2,196 | 2,190,515 | ||||||||||||
| ||||||||||||||||
University of Puerto Rico; Series 2006 Q, RB | 5.00% | 06/01/2025 | 5,000 | 4,962,479 | ||||||||||||
| ||||||||||||||||
106,828,703 | ||||||||||||||||
| ||||||||||||||||
Rhode Island–0.50% | ||||||||||||||||
Pawtucket (City of), RI Housing Authority; Series 2010, RB | 5.50% | 09/01/2028 | 195 | 195,367 | ||||||||||||
| ||||||||||||||||
Rhode Island Health and Educational Building Corp. (Lifespan Obligated Group); Series 2024, RB | 5.25% | 05/15/2049 | 3,650 | 3,952,809 | ||||||||||||
| ||||||||||||||||
Rhode Island Housing and Mortgage Finance Corp.; Series 1992 10-A, RB | 6.50% | 04/01/2027 | 80 | 80,170 | ||||||||||||
| ||||||||||||||||
Tobacco Settlement Financing Corp.; Series 2015 B, Ref. RB | 5.00% | 06/01/2050 | 2,000 | 2,009,932 | ||||||||||||
| ||||||||||||||||
6,238,278 | ||||||||||||||||
| ||||||||||||||||
South Carolina–0.50% | ||||||||||||||||
Patriots Energy Group Financing Agency; Series 2023 A-1, RB(a) | 5.25% | 08/01/2031 | 2,500 | 2,677,126 | ||||||||||||
| ||||||||||||||||
South Carolina (State of) Jobs-Economic Development Authority (South Carolina SAVES Green | ||||||||||||||||
| ||||||||||||||||
Community Program - AAC East LLC) (Green Bonds); Series 2019, RB(e) | 7.00% | 05/01/2026 | 1,125 | 1,089,608 | ||||||||||||
| ||||||||||||||||
South Carolina (State of) Public Service Authority; Series 2014 A, RB | 5.50% | 12/01/2054 | 2,450 | 2,453,193 | ||||||||||||
| ||||||||||||||||
6,219,927 | ||||||||||||||||
| ||||||||||||||||
Tennessee–2.03% | ||||||||||||||||
Bristol (City of), TN Industrial Development Board (Pinnacle); Series 2016, RB | 5.00% | 06/01/2027 | 4,595 | 4,418,279 | ||||||||||||
| ||||||||||||||||
Knox (County of), TN Health, Educational & Housing Facility Board (University Health); Series 2017, Ref. RB | 5.00% | 04/01/2036 | 2,605 | 2,667,582 | ||||||||||||
| ||||||||||||||||
Memphis (City of) & Shelby (County of), TN Economic Development Growth Engine Industrial Development Board (Graceland); Series 2017 A, Ref. RB | 5.50% | 07/01/2037 | 350 | 243,945 | ||||||||||||
| ||||||||||||||||
Metropolitan Development and Housing Agency (Fifth + Broadway Development); | ||||||||||||||||
Series 2018, RB(e) | 4.50% | 06/01/2028 | 1,035 | 1,040,233 | ||||||||||||
| ||||||||||||||||
Series 2018, RB(e) | 5.13% | 06/01/2036 | 1,000 | 1,021,401 | ||||||||||||
| ||||||||||||||||
Nashville (City of) & Davidson (County of), TN Metropolitan Government Health & Educational Facilities Board (The) (Trousdale Foundation Properties); Series 2018 A, RB (Acquired 08/29/2018-01/31/2019; Cost $1,995,192)(b)(c)(e) | 5.25% | 04/01/2028 | 2,000 | 580,000 | ||||||||||||
| ||||||||||||||||
Shelby (County of), TN Health, Educational & Housing Facilities Board (Trezevant Manor); | ||||||||||||||||
Series 2013 A, Ref. RB | 5.38% | 09/01/2041 | 205 | 172,572 | ||||||||||||
| ||||||||||||||||
Series 2013 A, Ref. RB | 5.50% | 09/01/2047 | 200 | 161,447 | ||||||||||||
| ||||||||||||||||
Series 2016 A, Ref. RB(e) | 5.00% | 09/01/2024 | 1,000 | 992,663 | ||||||||||||
| ||||||||||||||||
Series 2016 A, Ref. RB(e) | 5.00% | 09/01/2031 | 3,000 | 2,701,376 | ||||||||||||
| ||||||||||||||||
Series 2016 A, Ref. RB(e) | 5.00% | 09/01/2037 | 1,475 | 1,231,169 | ||||||||||||
| ||||||||||||||||
Tennergy Corp.; | ||||||||||||||||
| ||||||||||||||||
Series 2021 A, RB(a) | 4.00% | 09/01/2028 | 3,610 | 3,621,849 | ||||||||||||
| ||||||||||||||||
Series 2022 A, RB(a) | 5.50% | 12/01/2030 | 5,950 | 6,363,137 | ||||||||||||
| ||||||||||||||||
25,215,653 | ||||||||||||||||
| ||||||||||||||||
Texas–9.09% | ||||||||||||||||
Argyle (Town of), TX (The Highlands of Argyle Public Improvement District No. 1); Series 2017, RB | 4.25% | 09/01/2027 | 255 | 255,473 | ||||||||||||
| ||||||||||||||||
Arlington Higher Education Finance Corp. (Basis Texas Charter Schools, Inc.); Series 2023, RB(a)(e) | 4.88% | 06/15/2026 | 1,000 | 1,007,911 | ||||||||||||
| ||||||||||||||||
Arlington Higher Education Finance Corp. (Cypress Christian School); Series 2024, RB(e) | 5.00% | 06/01/2033 | 3,790 | 3,896,313 | ||||||||||||
| ||||||||||||||||
Arlington Higher Education Finance Corp. (Legacy Traditional Schools); | ||||||||||||||||
Series 2021, Ref. RB | 4.00% | 02/15/2031 | 1,350 | 1,209,049 | ||||||||||||
| ||||||||||||||||
Series 2021, Ref. RB | 4.13% | 02/15/2041 | 3,325 | 2,481,784 | ||||||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
17 Invesco Short Duration High Yield Municipal Fund
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||||
| ||||||||||||||||
Texas–(continued) | ||||||||||||||||
Arlington Higher Education Finance Corp. (Newman International Academy); | ||||||||||||||||
Series 2016, RB | 5.38% | 08/15/2036 | $ | 3,835 | $ | 3,792,071 | ||||||||||
| ||||||||||||||||
Series 2021, RB | 5.00% | 08/15/2041 | 900 | 811,552 | ||||||||||||
| ||||||||||||||||
Arlington Higher Education Finance Corp. (Odyssey Academy, Inc.); Series 2023 A, RB(e) | 5.25% | 02/15/2033 | 1,950 | 1,958,947 | ||||||||||||
| ||||||||||||||||
Arlington Higher Education Finance Corp. (UME Preparatory Academy); Series 2017 A, RB | 4.55% | 08/15/2028 | 500 | 491,954 | ||||||||||||
| ||||||||||||||||
Arlington Higher Education Finance Corp. (Winfree Academy Charter School); Series 2019, Ref. RB | 5.15% | 08/15/2029 | 1,235 | 1,237,735 | ||||||||||||
| ||||||||||||||||
Austin (City of), TX; Series 2014, RB(f) | 5.00% | 11/15/2044 | 4,000 | 4,000,063 | ||||||||||||
| ||||||||||||||||
Austin (City of), TX (Travis, Williamson and Hays Counties); Series 2017 B, RB(f) | 5.00% | 11/15/2046 | 4,500 | 4,542,619 | ||||||||||||
| ||||||||||||||||
Bexar County Health Facilities Development Corp. (Army Retirement Residence Foundation); | ||||||||||||||||
Series 2016, Ref. RB | 5.00% | 07/15/2026 | 250 | 249,544 | ||||||||||||
| ||||||||||||||||
Series 2018, Ref. RB | 5.00% | 07/15/2026 | 1,000 | 998,177 | ||||||||||||
| ||||||||||||||||
Series 2018, Ref. RB | 5.00% | 07/15/2033 | 1,630 | 1,573,176 | ||||||||||||
| ||||||||||||||||
Brazoria County Industrial Development Corp. (Gladieux Metals Recycling LLC); | ||||||||||||||||
Series 2019, RB(f) | 7.00% | 03/01/2039 | 385 | 367,176 | ||||||||||||
| ||||||||||||||||
Series 2019, RB(e)(f) | 9.00% | 03/01/2039 | 2,035 | 2,142,436 | ||||||||||||
| ||||||||||||||||
Calhoun (County of), TX Navigation Industrial Development Authority (Max Midstream Texas LLC); Series 2021, RN(e)(f) | 3.63% | 07/01/2026 | 7,000 | 6,557,384 | ||||||||||||
| ||||||||||||||||
Clifton Higher Education Finance Corp. (International Leadership of Texas); Series 2018 D, RB | 5.75% | 08/15/2033 | 2,000 | 2,060,356 | ||||||||||||
| ||||||||||||||||
Crandall (City of), TX; | ||||||||||||||||
Series 2021, RB(e) | 4.13% | 09/15/2026 | 100 | 98,170 | ||||||||||||
| ||||||||||||||||
Series 2021, RB(e) | 4.75% | 09/15/2031 | 100 | 97,178 | ||||||||||||
| ||||||||||||||||
Series 2021, RB(e) | 5.25% | 09/15/2051 | 500 | 482,317 | ||||||||||||
| ||||||||||||||||
Edinburg Economic Development Corp.; Series 2019, RB(e) | 4.00% | 08/15/2029 | 585 | 555,373 | ||||||||||||
| ||||||||||||||||
Gulf Coast Industrial Development Authority; Series 1998, RB(f) | 8.00% | 04/01/2028 | 340 | 340,346 | ||||||||||||
| ||||||||||||||||
Harris (County of) & Houston (City of), TX Sports Authority; Series 2014 A, Ref. RB | 5.00% | 11/15/2030 | 2,000 | 2,017,148 | ||||||||||||
| ||||||||||||||||
Houston (City of), TX; | ||||||||||||||||
Series 2011, Ref. RB(f) | 6.50% | 07/15/2030 | 1,450 | 1,450,859 | ||||||||||||
| ||||||||||||||||
Series 2014 D, Ref. RB | 5.00% | 11/15/2044 | 2,000 | 2,011,675 | ||||||||||||
| ||||||||||||||||
Series 2015 B-1, RB(f) | 5.00% | 07/15/2030 | 5,000 | 5,013,412 | ||||||||||||
| ||||||||||||||||
Series 2015 B-1, RB(f) | 5.00% | 07/15/2035 | 7,700 | 7,714,611 | ||||||||||||
| ||||||||||||||||
Houston (City of), TX Airport System (United Airlines, Inc. Terminal E); | ||||||||||||||||
Series 2014, Ref. RB(f) | 5.00% | 07/01/2029 | 1,500 | 1,500,371 | ||||||||||||
| ||||||||||||||||
Series 2020 A, Ref. RB(f) | 5.00% | 07/01/2027 | 2,325 | 2,357,516 | ||||||||||||
| ||||||||||||||||
Houston Higher Education Finance Corp. (Houston Baptist University); Series 2021, RB | 3.38% | 10/01/2037 | 700 | 584,395 | ||||||||||||
| ||||||||||||||||
Mesquite Health Facilities Development Corp. (Christian Care Centers, Inc.); Series 2016, Ref. RB (Acquired 05/08/2018-12/17/2018; Cost $218,990)(b)(c) | 5.00% | 02/15/2035 | 220 | 2,200 | ||||||||||||
| ||||||||||||||||
Mission Economic Development Corp. (Natgasoline); Series 2018, Ref. RB(e)(f) | 4.63% | 10/01/2031 | 7,500 | 7,487,888 | ||||||||||||
| ||||||||||||||||
New Hope Cultural Education Facilities Finance Corp. (Carillon Lifecare Community); | ||||||||||||||||
Series 2016, Ref. RB | 4.00% | 07/01/2028 | 2,915 | 2,648,948 | ||||||||||||
| ||||||||||||||||
Series 2016, Ref. RB | 5.00% | 07/01/2036 | 3,950 | 3,392,246 | ||||||||||||
| ||||||||||||||||
New Hope Cultural Education Facilities Finance Corp. (Cumberland Academy); Series 2020 A, RB(e) | 4.00% | 08/15/2030 | 4,805 | 4,619,673 | ||||||||||||
| ||||||||||||||||
New Hope Cultural Education Facilities Finance Corp. (Forefront Living San Antonio - Bella Vida at LA Cantera)); Series 2023, RN(e) | 12.00% | 12/01/2028 | 4,000 | 4,350,342 | ||||||||||||
| ||||||||||||||||
New Hope Cultural Education Facilities Finance Corp. (Legacy Preparatory Charter Academy); Series 2018 A, RB(e) | 6.00% | 08/15/2037 | 1,000 | 1,016,779 | ||||||||||||
| ||||||||||||||||
New Hope Cultural Education Facilities Finance Corp. (Morningside Ministries); Series 2022, Ref. RB | 4.00% | 01/01/2032 | 1,500 | 1,291,832 | ||||||||||||
| ||||||||||||||||
New Hope Cultural Education Facilities Finance Corp. (MRC Senior Living-The Langford); Series 2016 A, RB | 5.38% | 11/15/2036 | 1,165 | 1,039,769 | ||||||||||||
| ||||||||||||||||
New Hope Cultural Education Facilities Finance Corp. (Outlook at Windhaven (The)); | ||||||||||||||||
Series 2022 B3, RB | 4.25% | 10/01/2026 | 1,100 | 1,091,243 | ||||||||||||
| ||||||||||||||||
Series 2022, RB | 5.50% | 10/01/2027 | 2,500 | 2,453,900 | ||||||||||||
| ||||||||||||||||
New Hope Cultural Education Facilities Finance Corp. (Presbyterian Village North); | ||||||||||||||||
Series 2018, Ref. RB | 5.00% | 10/01/2024 | 1,150 | 1,148,924 | ||||||||||||
| ||||||||||||||||
Series 2018, Ref. RB | 5.00% | 10/01/2039 | 1,000 | 857,902 | ||||||||||||
| ||||||||||||||||
Port Beaumont Navigation District (Jefferson Gulf Coast Energy); | ||||||||||||||||
Series 2021, RB(e)(f) | 2.50% | 01/01/2030 | 2,150 | 1,868,290 | ||||||||||||
| ||||||||||||||||
Series 2021, RB(e)(f) | 2.63% | 01/01/2031 | 800 | 683,710 | ||||||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
18 Invesco Short Duration High Yield Municipal Fund
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||||
| ||||||||||||||||
Texas–(continued) | ||||||||||||||||
Red River Health Facilities Development Corp. (MRC Crossing); | ||||||||||||||||
Series 2014 A, RB(j) | 6.75% | 11/15/2024 | $ | 50 | $ | 51,088 | ||||||||||
| ||||||||||||||||
Series 2014 A, RB(a)(j) | 7.50% | 11/15/2024 | 100 | 102,679 | ||||||||||||
| ||||||||||||||||
Series 2014 A, RB(a)(j) | 7.75% | 11/15/2024 | 1,815 | 1,866,723 | ||||||||||||
| ||||||||||||||||
Rowlett (City of), TX (Bayside Public Improvement District North Improvement Area); | ||||||||||||||||
Series 2016, RB | 4.90% | 09/15/2024 | 60 | 59,848 | ||||||||||||
| ||||||||||||||||
Series 2016, RB | 5.38% | 09/15/2030 | 665 | 667,088 | ||||||||||||
| ||||||||||||||||
Tarrant County Cultural Education Facilities Finance Corp. (Air Force Village Obligated Group); Series 2016, Ref. RB | 5.00% | 05/15/2037 | 1,400 | 1,353,929 | ||||||||||||
| ||||||||||||||||
Tarrant County Cultural Education Facilities Finance Corp. (C.C. Young Memorial Home); | ||||||||||||||||
Series 2017 A, RB (Acquired 12/15/2016; Cost $1,011,589)(b)(c) | 6.00% | 02/15/2031 | 1,000 | 550,000 | ||||||||||||
| ||||||||||||||||
Series 2017, RB (Acquired 11/05/2019; Cost $3,271,528)(b)(c) | 6.38% | 02/15/2041 | 3,000 | 1,650,000 | ||||||||||||
| ||||||||||||||||
Tarrant County Cultural Education Facilities Finance Corp. (MRC Stevenson Oaks); | ||||||||||||||||
Series 2020, Ref. RB | 4.00% | 11/15/2027 | 670 | 641,059 | ||||||||||||
| ||||||||||||||||
Series 2020, Ref. RB | 6.25% | 11/15/2031 | 1,000 | 974,324 | ||||||||||||
| ||||||||||||||||
Tarrant County Cultural Education Facilities Finance Corp. (Stayton at Museum Way); Series 2020 A, RB (Acquired 09/14/2021; Cost $2,468,933)(c) | 5.75% | 12/01/2054 | 2,355 | 1,530,644 | ||||||||||||
| ||||||||||||||||
Temple (City of), TX; Series 2018 A, RB | 5.00% | 08/01/2028 | 3,685 | 3,728,120 | ||||||||||||
| ||||||||||||||||
Texas Private Activity Bond Surface Transportation Corp. (Blueridge Transportation Group, LLC SH 288 Toll Lanes); Series 2016, RB(f) | 5.00% | 12/31/2040 | 2,065 | 2,078,134 | ||||||||||||
| ||||||||||||||||
Ysleta Independent School District Public Facility Corp.; Series 2001, Ref. RB (INS - AMBAC)(d) | 5.38% | 11/15/2024 | 15 | 15,049 | ||||||||||||
| ||||||||||||||||
113,079,422 | ||||||||||||||||
| ||||||||||||||||
Utah–2.16% | ||||||||||||||||
Black Desert Public Infrastructure District; | ||||||||||||||||
Series 2021 A, GO Bonds(e) | 3.25% | 03/01/2031 | 1,050 | 955,074 | ||||||||||||
| ||||||||||||||||
Series 2021 A, GO Bonds(e) | 3.50% | 03/01/2036 | 1,750 | 1,522,875 | ||||||||||||
| ||||||||||||||||
Mida Golf and Equestrian Center Public Infrastructure District; | ||||||||||||||||
Series 2021, GO Bonds(e) | 4.25% | 06/01/2041 | 2,205 | 1,751,351 | ||||||||||||
| ||||||||||||||||
Series 2021, GO Bonds(e) | 4.50% | 06/01/2051 | 2,500 | 1,831,325 | ||||||||||||
| ||||||||||||||||
Mida Mountain Village Public Infrastructure District; | ||||||||||||||||
Series 2020 A, RB(e) | 4.25% | 08/01/2035 | 1,645 | 1,578,789 | ||||||||||||
| ||||||||||||||||
Series 2020 A, RB(e) | 4.50% | 08/01/2040 | 1,205 | 1,109,173 | ||||||||||||
| ||||||||||||||||
Military Installation Development Authority; Series 2021 A-2, RB | 4.00% | 06/01/2041 | 1,250 | 1,037,882 | ||||||||||||
| ||||||||||||||||
Sienna Hills Public Infrastructure District No. 1; Series 2023 A, GO Bonds(e) | 6.75% | 07/01/2035 | 2,500 | 2,567,175 | ||||||||||||
| ||||||||||||||||
UIPA Crossroads Public Infrastructure District; Series 2021, RB(e) | 4.13% | 06/01/2041 | 3,000 | 2,702,103 | ||||||||||||
| ||||||||||||||||
Utah (State of) Charter School Finance Authority (Ascent Academies of Utah); | ||||||||||||||||
Series 2022, RB(e) | 4.25% | 06/15/2027 | 1,810 | 1,739,652 | ||||||||||||
| ||||||||||||||||
Series 2022, RB(e) | 4.50% | 06/15/2032 | 2,000 | 1,843,166 | ||||||||||||
| ||||||||||||||||
Series 2022, RB(e) | 5.00% | 06/15/2037 | 2,515 | 2,321,452 | ||||||||||||
| ||||||||||||||||
Utah (State of) Charter School Finance Authority (Freedom Academy Foundation (The)); Series 2017, Ref. RB(e) | 4.50% | 06/15/2027 | 140 | 135,310 | ||||||||||||
| ||||||||||||||||
Utah (State of) Charter School Finance Authority (Merit Preparatory Academy); | ||||||||||||||||
Series 2019 A, RB(e) | 4.50% | 06/15/2029 | 500 | 480,858 | ||||||||||||
| ||||||||||||||||
Series 2019 A, RB(e) | 5.00% | 06/15/2034 | 1,270 | 1,217,647 | ||||||||||||
| ||||||||||||||||
Utah (State of) Charter School Finance Authority (Renaissance Academy); | ||||||||||||||||
Series 2020, Ref. RB(e) | 3.50% | 06/15/2025 | 175 | 172,688 | ||||||||||||
| ||||||||||||||||
Series 2020, Ref. RB(e) | 4.00% | 06/15/2030 | 520 | 501,743 | ||||||||||||
| ||||||||||||||||
Series 2020, Ref. RB(e) | 5.00% | 06/15/2040 | 350 | �� | 348,046 | |||||||||||
| ||||||||||||||||
Wohali Public Infrastructure District No. 1 (Wohali Assessment Area #1); Series 2023, RB(e) | 7.00% | 12/01/2042 | 3,000 | 3,033,410 | ||||||||||||
| ||||||||||||||||
26,849,719 | ||||||||||||||||
| ||||||||||||||||
Virgin Islands–0.08% | ||||||||||||||||
Matching Fund Special Purpose Securitization Corp.; Series 2022 A, Ref. RB | 5.00% | 10/01/2026 | 1,000 | 1,030,870 | ||||||||||||
| ||||||||||||||||
Virginia–0.67% | ||||||||||||||||
Hanover (County of), VA Economic Development Authority (Covenant Woods); Series 2018, Ref. RB | 5.00% | 07/01/2038 | 250 | 229,103 | ||||||||||||
| ||||||||||||||||
Peninsula Town Center Community Development Authority; Series 2018, Ref. RB(e) | 4.50% | 09/01/2028 | 1,450 | 1,445,594 | ||||||||||||
| ||||||||||||||||
Roanoke (County of), VA Economic Development Authority (Richfield Living); Series 2019 A, Ref. RB | 4.75% | 09/01/2029 | 355 | 329,092 | ||||||||||||
| ||||||||||||||||
Virginia (Commonwealth of) Small Business Financing Authority (Covanta); Series 2018, RB(a)(e)(f) | 5.00% | 07/01/2038 | 2,310 | 2,157,241 | ||||||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
19 Invesco Short Duration High Yield Municipal Fund
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||||
| ||||||||||||||||
Virginia–(continued) | ||||||||||||||||
Virginia Beach Development Authority (Westminster-Canterbury on Chesapeake Bay); Series 2023 B-3, RB | 5.38% | 09/01/2029 | $ | 4,000 | $ | 4,130,150 | ||||||||||
| ||||||||||||||||
8,291,180 | ||||||||||||||||
| ||||||||||||||||
Washington–1.03% | ||||||||||||||||
Kalispel Tribe of Indians; Series 2018 B, RB(e) | 5.00% | 01/01/2032 | 100 | 103,271 | ||||||||||||
| ||||||||||||||||
Kelso (City of), WA Housing Authority (Chinook & Columbia Apartments); Series 1998, RB | 5.60% | 03/01/2028 | 85 | 85,001 | ||||||||||||
| ||||||||||||||||
King (County of), WA Housing Authority (Rural Preservation); Series 1997, RB(f) | 5.75% | 01/01/2028 | 5 | 5,009 | ||||||||||||
| ||||||||||||||||
King (County of), WA Public Hospital District No. 4; Series 2015 A, RB | 6.25% | 12/01/2045 | 1,700 | 1,708,529 | ||||||||||||
| ||||||||||||||||
Port of Seattle Industrial Development Corp. (Delta Airlines); Series 2012, Ref. RB(f) | 5.00% | 04/01/2030 | 6,475 | 6,475,622 | ||||||||||||
| ||||||||||||||||
Washington (State of) Housing Finance Commission (Bayview Manor Homes); Series 2016 A, Ref. RB(e) | 4.00% | 07/01/2026 | 340 | 327,200 | ||||||||||||
| ||||||||||||||||
Washington (State of) Housing Finance Commission (Judson Park); Series 2018, Ref. RB(e) | 5.00% | 07/01/2038 | 385 | 370,117 | ||||||||||||
| ||||||||||||||||
Washington (State of) Housing Finance Commission (Presbyterian Retirement Co.); Series 2016, Ref. RB(e) | 5.00% | 01/01/2036 | 1,755 | 1,463,219 | ||||||||||||
| ||||||||||||||||
Washington (State of) Housing Finance Commission (Spokane International Academy); Series 2021 A, RB(e) | 4.00% | 07/01/2040 | 1,640 | 1,413,744 | ||||||||||||
| ||||||||||||||||
Washington (State of) Housing Finance Commission (The Hearthstone); Series 2018 A, Ref. RB(e) | 4.50% | 07/01/2028 | 965 | 895,908 | ||||||||||||
| ||||||||||||||||
12,847,620 | ||||||||||||||||
| ||||||||||||||||
West Virginia–0.86% | ||||||||||||||||
Harrison (County of), WV County Commission (Charles Pointe Economic Opportunity Development District); Series 2019 A, RB(b)(e) | 5.75% | 06/01/2042 | 1,000 | 707,064 | ||||||||||||
| ||||||||||||||||
Monogalia (County of), WV (Development Disctict No. 4 - University Town Centre); Series 2023, Ref. RB(e) | 5.75% | 06/01/2043 | 1,000 | 1,061,044 | ||||||||||||
| ||||||||||||||||
Monongalia (County of), WV Building Commission (Monongalia Health System Obligated Group); | ||||||||||||||||
Series 2015, Ref. RB | 5.00% | 07/01/2025 | 360 | 362,491 | ||||||||||||
| ||||||||||||||||
Series 2015, Ref. RB | 5.00% | 07/01/2026 | 460 | 462,544 | ||||||||||||
| ||||||||||||||||
Series 2015, Ref. RB | 5.00% | 07/01/2027 | 560 | 563,813 | ||||||||||||
| ||||||||||||||||
Series 2015, Ref. RB | 4.00% | 07/01/2035 | 190 | 174,020 | ||||||||||||
| ||||||||||||||||
Monongalia (County of), WV Commission Special District (University Town Centre Economic Opportunity Development District); Series 2017 A, Ref. RB(e) | 4.50% | 06/01/2027 | 2,450 | 2,464,031 | ||||||||||||
| ||||||||||||||||
West Virginia (State of) Economic Development Authority (Entsorga West Virginia LLC); | ||||||||||||||||
Series 2016, RB(b)(e)(f) | 6.75% | 02/01/2026 | 1,000 | 700,000 | ||||||||||||
| ||||||||||||||||
Series 2018, RB(b)(e)(f) | 8.75% | 02/01/2036 | 320 | 256,000 | ||||||||||||
| ||||||||||||||||
West Virginia (State of) Economic Development Authority (Allegheny Metallurgical Project); Series 2023, RB(a)(f) | 4.75% | 08/01/2024 | 4,000 | 4,004,272 | ||||||||||||
| ||||||||||||||||
10,755,279 | ||||||||||||||||
| ||||||||||||||||
Wisconsin–4.51% | ||||||||||||||||
Lomira (Village of), WI Community Development Authority; | ||||||||||||||||
Series 2018 B, Ref. RB | 3.65% | 10/01/2028 | 705 | 700,441 | ||||||||||||
| ||||||||||||||||
Series 2018 B, Ref. RB | 3.75% | 10/01/2029 | 175 | 170,921 | ||||||||||||
| ||||||||||||||||
Public Finance Authority; Series 2023 A, Ref. RB(e) | 5.75% | 10/01/2043 | 1,775 | 1,786,812 | ||||||||||||
| ||||||||||||||||
Public Finance Authority (Indigo); Series 2023, RB(e)(g) | 0.00% | 12/01/2028 | 6,000 | 4,148,545 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Health & Educational Facilities Authority (Benevolent Corp. Cedar Community); Series 2017, Ref. RB | 5.00% | 06/01/2028 | 1,205 | 1,206,731 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Health & Educational Facilities Authority (Camillus Health System); | ||||||||||||||||
Series 2019, Ref. RB | 5.00% | 11/01/2028 | 935 | 909,967 | ||||||||||||
| ||||||||||||||||
Series 2019, Ref. RB | 5.00% | 11/01/2030 | 1,035 | 991,925 | ||||||||||||
| ||||||||||||||||
Series 2019, Ref. RB | 5.00% | 11/01/2039 | 1,000 | 878,944 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Health & Educational Facilities Authority (Clement Manor, Inc.); Series 2019, Ref. RB | 4.25% | 08/01/2034 | 1,000 | 827,011 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Health & Educational Facilities Authority (Oakwood Lutheran Senior Ministries); Series 2021, Ref. RB | 4.00% | 01/01/2037 | 1,470 | 1,132,981 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority; | ||||||||||||||||
Series 2020 A, RB(e) | 4.00% | 03/01/2030 | 1,585 | 1,496,731 | ||||||||||||
| ||||||||||||||||
Series 2022 B, RB(e) | 7.00% | 02/01/2028 | 700 | 693,057 | ||||||||||||
| ||||||||||||||||
Series 2022, RB(e) | 5.38% | 06/01/2037 | 670 | 674,350 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (Alabama Proton Therapy Center); Series 2017 A, RB (Acquired 12/01/2017; Cost $2,000,000)(c)(e) | 6.25% | 10/01/2031 | 2,000 | 200,000 | ||||||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
20 Invesco Short Duration High Yield Municipal Fund
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||||
| ||||||||||||||||
Wisconsin–(continued) | ||||||||||||||||
Wisconsin (State of) Public Finance Authority (Alamance Community School); Series 2021 A, RB(e) | 5.00% | 06/15/2041 | $ | 510 | $ | 461,153 | ||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (American Dream at Meadowlands); | ||||||||||||||||
Series 2017, RB(b)(e) | 6.25% | 08/01/2027 | 500 | 390,000 | ||||||||||||
| ||||||||||||||||
Series 2017, RB(b)(e) | 6.75% | 08/01/2031 | 500 | 365,000 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (Ascend Leadership Academy); | ||||||||||||||||
Series 2021 A, RB(e) | 4.25% | 06/15/2031 | 550 | 492,349 | ||||||||||||
| ||||||||||||||||
Series 2021 A, RB(e) | 5.00% | 06/15/2041 | 615 | 532,067 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (Bancroft Neurohealth); Series 2016 A, RB(e) | 5.00% | 06/01/2026 | 1,005 | 994,660 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (Community School of Davidson); Series 2018, RB | 5.00% | 10/01/2033 | 390 | 391,249 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (Delray Beach Radiation Therapy Center); Series 2017 A, RB (Acquired 04/03/2017; Cost $1,500,000)(b)(c)(e) | 5.75% | 11/01/2024 | 1,500 | 825,000 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (Explore Academy); | ||||||||||||||||
Series 2020 A, RB(e) | 6.13% | 02/01/2039 | 4,310 | 3,964,071 | ||||||||||||
| ||||||||||||||||
Series 2020, RB(e) | 7.00% | 02/01/2025 | 90 | 89,603 | ||||||||||||
| ||||||||||||||||
Series 2022 A, RB(e) | 6.13% | 02/01/2039 | 4,175 | 3,839,906 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (Lariat); Series 2023, RB(e)(g) | 0.00% | 09/01/2029 | 2,000 | 1,332,336 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (Mallard Creek Stem Academy); Series 2019 A, RB(e) | 4.38% | 06/15/2029 | 1,470 | 1,432,377 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (Million Air Two LLC General Aviation Facilities); | ||||||||||||||||
Series 2017 A, RB(f) | 7.25% | 06/01/2035 | 3,800 | 3,749,908 | ||||||||||||
| ||||||||||||||||
Series 2017, Ref. RB(e)(f) | 7.13% | 06/01/2041 | 155 | 142,456 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (New Plan Learning, Inc.); Series 2021 A, Ref. RB | 3.75% | 07/01/2031 | 3,405 | 3,026,745 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (North Carolina Leadership Academy); | ||||||||||||||||
Series 2019, RB(e) | 4.00% | 06/15/2029 | 485 | 468,378 | ||||||||||||
| ||||||||||||||||
Series 2019, RB(e) | 5.00% | 06/15/2039 | 440 | 427,603 | ||||||||||||
| ||||||||||||||||
Series 2019, RB(e) | 5.00% | 06/15/2049 | 540 | 495,054 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (Proton International); | ||||||||||||||||
Series 2021 A, RB(e) | 5.50% | 01/01/2031 | 5,375 | 4,694,011 | ||||||||||||
| ||||||||||||||||
Series 2021 A, RB(e) | 6.50% | 01/01/2041 | 3,110 | 2,455,876 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (Quality Education Academy); Series 2023, RB(e) | 6.00% | 07/15/2043 | 690 | 717,491 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (Roseman University of Health Sciences); Series 2022, RB(e)(j) | 4.00% | 04/01/2032 | 10 | 10,511 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (Searstone CCRC); Series 2021 A, Ref. RB(e) | 4.00% | 06/01/2036 | 1,500 | 1,312,339 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (Uwharrie Charter Academy); Series 2022 A, RB(e) | 4.50% | 06/15/2032 | 500 | 493,173 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (WhiteStone); Series 2017, Ref. RB(e) | 4.00% | 03/01/2027 | 695 | 691,321 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (Wingate University); | ||||||||||||||||
Series 2018 A, Ref. RB | 5.25% | 10/01/2029 | 1,825 | 1,882,505 | ||||||||||||
| ||||||||||||||||
Series 2018 A, Ref. RB | 5.25% | 10/01/2030 | 1,925 | 1,983,722 | ||||||||||||
| ||||||||||||||||
Series 2018 A, Ref. RB | 5.25% | 10/01/2031 | 1,030 | 1,059,764 | ||||||||||||
| ||||||||||||||||
Series 2018 A, Ref. RB | 5.25% | 10/01/2032 | 720 | 739,640 | ||||||||||||
| ||||||||||||||||
Wisconsin (State of) Public Finance Authority (Wittenberg University); Series 2016, RB(e) | 5.25% | 12/01/2039 | 1,000 | 850,528 | ||||||||||||
| ||||||||||||||||
56,129,212 | ||||||||||||||||
| ||||||||||||||||
Total Municipal Obligations (Cost $1,274,867,664) | 1,227,540,953 | |||||||||||||||
| ||||||||||||||||
U.S. Dollar Denominated Bonds & Notes–0.36% | ||||||||||||||||
California–0.36% | ||||||||||||||||
CalPlant I LLC; | ||||||||||||||||
Exit Facility(e)(k) | 15.00% | 07/01/2025 | 770 | 770,000 | ||||||||||||
| ||||||||||||||||
Series 21A(k) | 9.50% | 03/31/2024 | 255 | 255,000 | ||||||||||||
| ||||||||||||||||
Series 21B(k) | 9.50% | 03/31/2024 | 955 | 955,000 | ||||||||||||
| ||||||||||||||||
Series 22A(k) | 9.50% | 03/31/2024 | 530 | 530,000 | ||||||||||||
Series 22B(k) | 9.50% | 03/31/2024 | 45 | 45,000 | ||||||||||||
| ||||||||||||||||
Series 22C(k) | 9.50% | 03/31/2024 | 345 | 345,000 | ||||||||||||
| ||||||||||||||||
Series 22X(k) | 9.50% | 03/31/2024 | 520 | 520,000 | ||||||||||||
| ||||||||||||||||
Series 23A(k) | 9.50% | 03/31/2024 | 180 | 180,000 | ||||||||||||
| ||||||||||||||||
Series 23B(k) | 9.50% | 03/31/2024 | 165 | 165,000 | ||||||||||||
| ||||||||||||||||
Series 23C(k) | 9.50% | 03/31/2024 | 260 | 260,000 | ||||||||||||
| ||||||||||||||||
Series 23D (Acquired 05/04/2023; Cost $225,000)(k) | 9.50% | 03/31/2024 | 225 | 225,000 | ||||||||||||
| ||||||||||||||||
Series 23E(k) | 9.50% | 03/31/2024 | 255 | 255,000 | ||||||||||||
| ||||||||||||||||
Total U.S. Dollar Denominated Bonds & Notes (Cost $4,505,000) | 4,505,000 | |||||||||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
21 Invesco Short Duration High Yield Municipal Fund
Shares | Value | |||||||
Common Stocks & Other Equity Interests-0.00% | ||||||||
Resolute Forest Products, Inc. | 6,757 | $ | 9,595 | |||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES(m) -99.00% (Cost $1,279,382,259) | 1,232,055,548 | |||||||
| ||||||||
FLOATING RATE NOTE OBLIGATIONS-(0.56)% | ||||||||
Notes with interest and fee rates of 3.86% at 02/29/2024 and contractual maturities of collateral ranging from 05/01/2025 to 06/15/ 2030 (See Note 1K)(n) | (7,015,000 | ) | ||||||
| ||||||||
BORROWINGS-(0.36)% | (4,500,000 | ) | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES-1.92% | 23,986,126 | |||||||
| ||||||||
NET ASSETS-100.00% | $ | 1,244,526,674 | ||||||
|
Investment Abbreviations:
| ||
AGC | - Assured Guaranty Corp. | |
AGM | - Assured Guaranty Municipal Corp. | |
AMBAC | - American Municipal Bond Assurance Corp. | |
BAM | - Build America Mutual Assurance Co. | |
COP | - Certificates of Participation | |
FGIC | - Financial Guaranty Insurance Company | |
GO | - General Obligation | |
IDR | - Industrial Development Revenue Bonds | |
INS | - Insurer | |
NATL | - National Public Finance Guarantee Corp. | |
RB | - Revenue Bonds | |
Ref. | - Refunding | |
RN | - Revenue Notes | |
SGI | - Syncora Guarantee, Inc. | |
Wts. | - Warrants |
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) | Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The aggregate value of these securities at February 29, 2024 was $20,264,847, which represented 1.93% of the Fund’s Net Assets. |
(c) | Restricted security. The aggregate value of these securities at February 29, 2024 was $25,226,298, which represented 2.03% of the Fund’s Net Assets. |
(d) | Principal and/or interest payments are secured by the bond insurance company listed. |
(e) | 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 29, 2024 was $339,386,728, which represented 27.27% of the Fund’s Net Assets. |
(f) | Security subject to the alternative minimum tax. |
(g) | Zero coupon bond issued at a discount. |
(h) | 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 $6,985,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security underlying the TOB Trusts. |
(i) | Underlying security related to TOB Trusts entered into by the Fund. See Note 1K. |
(j) | Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral. |
(k) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(l) | The issuer is paying less than stated interest, but is not in default on principal because scheduled principal payments have not yet begun. |
(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 obligations but may be called upon to satisfy the 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 29, 2024. At February 29, 2024, the Fund’s investments with a value of $9,308,331 are held by TOB Trusts and serve as collateral for the $7,015,000 in the floating rate note obligations outstanding at that date. |
Portfolio Composition
By credit sector, based on total investments
As of February 29, 2024
Revenue Bonds | 89.17 | % | ||
| ||||
General Obligation Bonds | 10.64 | |||
| ||||
Pre-Refunded Bonds | 0.19 | |||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
22 Invesco Short Duration High Yield Municipal Fund
Statement of Assets and Liabilities
February 29, 2024
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value | $ | 1,232,055,548 | ||
| ||||
Cash | 4,431,013 | |||
| ||||
Receivable for: | ||||
Investments sold | 5,108,773 | |||
| ||||
Fund shares sold | 867,422 | |||
| ||||
Interest | 18,523,526 | |||
| ||||
Investments matured, at value (Cost $14,202,819) | 3,871,841 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 90,490 | |||
| ||||
Other assets | 480,080 | |||
| ||||
Total assets | 1,265,428,693 | |||
| ||||
Liabilities: | ||||
Floating rate note obligations | 7,015,000 | |||
| ||||
Payable for: | ||||
Borrowings | 4,500,000 | |||
| ||||
Investments purchased | 5,803,067 | |||
| ||||
Dividends | 1,596,747 | |||
| ||||
Fund shares reacquired | 1,430,837 | |||
| ||||
Accrued fees to affiliates | 376,770 | |||
| ||||
Accrued interest expense | 20,362 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 1,458 | |||
| ||||
Accrued other operating expenses | 67,288 | |||
| ||||
Trustee deferred compensation and retirement plans | 90,490 | |||
| ||||
Total liabilities | 20,902,019 | |||
| ||||
Net assets applicable to shares outstanding | $ | 1,244,526,674 | ||
|
Net assets consist of: | ||||
Shares of beneficial interest | $ | 1,798,372,710 | ||
| ||||
Distributable earnings (loss) | (553,846,036 | ) | ||
| ||||
$ | 1,244,526,674 | |||
| ||||
Net Assets: | ||||
Class A | $ | 740,217,747 | ||
| ||||
Class C | $ | 45,820,596 | ||
| ||||
Class Y | $ | 425,310,076 | ||
| ||||
Class R5 | $ | 9,492 | ||
| ||||
Class R6 | $ | 33,168,763 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 79,023,809 | |||
| ||||
Class C | 4,897,726 | |||
| ||||
Class Y | 45,378,505 | |||
| ||||
Class R5 | 1,004 | |||
| ||||
Class R6 | 3,536,607 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 9.37 | ||
| ||||
Maximum offering price per share | $ | 9.61 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 9.36 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 9.37 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 9.45 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 9.38 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
23 Invesco Short Duration High Yield Municipal Fund
Statement of Operations
For the six months ended February 29, 2024
(Unaudited)
Investment income: |
| |||
Interest | $ | 34,274,771 | ||
| ||||
Expenses: |
| |||
Advisory fees | 2,543,409 | |||
| ||||
Administrative services fees | 89,262 | |||
| ||||
Custodian fees | 7,545 | |||
| ||||
Distribution fees: | ||||
Class A | 941,430 | |||
| ||||
Class C | 248,037 | |||
| ||||
Interest, facilities and maintenance fees | 672,533 | |||
| ||||
Transfer agent fees – A, C and Y | 524,915 | |||
| ||||
Transfer agent fees – R6 | 2,455 | |||
| ||||
Trustees’ and officers’ fees and benefits | 16,445 | |||
| ||||
Registration and filing fees | 74,518 | |||
| ||||
Reports to shareholders | 97,912 | |||
| ||||
Professional services fees | 219,445 | |||
| ||||
Other | 13,899 | |||
| ||||
Total expenses | 5,451,805 | |||
| ||||
Less: Expense offset arrangement(s) | (3,705 | ) | ||
| ||||
Net expenses | 5,448,100 | |||
| ||||
Net investment income | 28,826,671 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities (includes net gains (losses) from securities sold to affiliates of $(105,068)) | (3,934,809 | ) | ||
| ||||
Futures contracts | (1,270,289 | ) | ||
| ||||
(5,205,098 | ) | |||
| ||||
Change in net unrealized appreciation of unaffiliated investment securities | 28,466,546 | |||
| ||||
Net realized and unrealized gain | 23,261,448 | |||
| ||||
Net increase in net assets resulting from operations | $ | 52,088,119 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
24 Invesco Short Duration High Yield Municipal Fund
Statement of Changes in Net Assets
For the six months ended February 29, 2024 and the year ended August 31, 2023
(Unaudited)
February 29, | August 31, | |||||||
2024 | 2023 | |||||||
Operations: | ||||||||
Net investment income | $ | 28,826,671 | $ | 55,242,617 | ||||
| ||||||||
Net realized gain (loss) | (5,205,098 | ) | (157,711,622 | ) | ||||
| ||||||||
Change in net unrealized appreciation | 28,466,546 | 96,108,524 | ||||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 52,088,119 | (6,360,481 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (15,285,607 | ) | (31,652,194 | ) | ||||
| ||||||||
Class C | (813,403 | ) | (1,959,484 | ) | ||||
| ||||||||
Class Y | (9,184,095 | ) | (17,991,536 | ) | ||||
| ||||||||
Class R5 | (200 | ) | (105,308 | ) | ||||
| ||||||||
Class R6 | (713,960 | ) | (1,365,023 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (25,997,265 | ) | (53,073,545 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (59,049,406 | ) | (94,739,187 | ) | ||||
| ||||||||
Class C | (10,513,625 | ) | (18,531,139 | ) | ||||
| ||||||||
Class Y | 1,660,741 | (63,922,605 | ) | |||||
| ||||||||
Class R5 | – | (9,611,316 | ) | |||||
| ||||||||
Class R6 | (2,514,331 | ) | 5,479,781 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (70,416,621 | ) | (181,324,466 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (44,325,767 | ) | (240,758,492 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 1,288,852,441 | 1,529,610,933 | ||||||
| ||||||||
End of period | $ | 1,244,526,674 | $ | 1,288,852,441 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
25 Invesco Short Duration High Yield Municipal Fund
(Unaudited)
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 expenses 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 02/29/24 | $ | 9.18 | $ | 0.20 | $ | 0.17 | $ | 0.37 | $ | (0.18 | ) | $ | 9.37 | 4.13 | % | $ | 740,218 | 0.92 | %(d) | 0.92 | %(d) | 0.81 | %(d) | 4.49 | %(d) | 13 | % | ||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 9.58 | 0.36 | (0.41 | ) | (0.05 | ) | (0.35 | ) | 9.18 | (0.54 | ) | 784,122 | 0.91 | 0.91 | 0.81 | 3.86 | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 10.67 | 0.32 | (1.06 | ) | (0.74 | ) | (0.35 | ) | 9.58 | (7.07 | ) | 914,354 | 0.84 | 0.84 | 0.77 | 3.13 | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 10.17 | 0.34 | 0.51 | 0.85 | (0.35 | ) | 10.67 | 8.50 | 933,441 | 0.86 | 0.86 | 0.79 | 3.25 | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 10.86 | 0.37 | (0.71 | ) | (0.34 | ) | (0.35 | ) | 10.17 | (3.19 | ) | 826,655 | 0.84 | 0.88 | 0.79 | 3.59 | 49 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 10.48 | 0.36 | 0.37 | 0.73 | (0.35 | ) | 10.86 | 7.09 | 193,076 | 0.86 | 0.98 | 0.79 | 3.40 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 9.17 | 0.17 | 0.17 | 0.34 | (0.15 | ) | 9.36 | 3.75 | 45,821 | 1.67 | (d) | 1.67 | (d) | 1.56 | (d) | 3.74 | (d) | 13 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 9.56 | 0.29 | (0.40 | ) | (0.11 | ) | (0.28 | ) | 9.17 | (1.19 | ) | 55,464 | 1.66 | 1.66 | 1.56 | 3.11 | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 10.65 | 0.24 | (1.06 | ) | (0.82 | ) | (0.27 | ) | 9.56 | (7.79 | ) | 76,878 | 1.59 | 1.59 | 1.52 | 2.38 | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 10.16 | 0.26 | 0.50 | 0.76 | (0.27 | ) | 10.65 | 7.60 | 92,982 | 1.61 | 1.61 | 1.54 | 2.50 | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 10.84 | 0.29 | (0.70 | ) | (0.41 | ) | (0.27 | ) | 10.16 | (3.84 | ) | 167,426 | 1.59 | 1.63 | 1.54 | 2.84 | 49 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 10.46 | 0.28 | 0.37 | 0.65 | (0.27 | ) | 10.84 | 6.29 | 52,195 | 1.61 | 1.73 | 1.54 | 2.65 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 9.19 | 0.22 | 0.16 | 0.38 | (0.20 | ) | 9.37 | 4.15 | 425,310 | 0.67 | (d) | 0.67 | (d) | 0.56 | (d) | 4.74 | (d) | 13 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 9.58 | 0.38 | (0.40 | ) | (0.02 | ) | (0.37 | ) | 9.19 | (0.18 | ) | 414,180 | 0.66 | 0.66 | 0.56 | 4.11 | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 10.67 | 0.34 | (1.06 | ) | (0.72 | ) | (0.37 | ) | 9.58 | (6.84 | ) | 497,651 | 0.59 | 0.59 | 0.52 | 3.38 | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 10.18 | 0.37 | 0.50 | 0.87 | (0.38 | ) | 10.67 | 8.66 | 365,892 | 0.61 | 0.61 | 0.54 | 3.50 | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 10.87 | 0.40 | (0.72 | ) | (0.32 | ) | (0.37 | ) | 10.18 | (2.94 | ) | 280,243 | 0.59 | 0.63 | 0.54 | 3.84 | 49 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 10.48 | 0.39 | 0.37 | 0.76 | (0.37 | ) | 10.87 | 7.45 | 216,579 | 0.61 | 0.73 | 0.54 | 3.65 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 9.25 | 0.22 | 0.18 | 0.40 | (0.20 | ) | 9.45 | 4.37 | 9 | 0.31 | (d) | 0.31 | (d) | 0.20 | (d) | 5.10 | (d) | 13 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 9.60 | 0.39 | (0.37 | ) | 0.02 | (0.37 | ) | 9.25 | 0.25 | 9 | 0.68 | 0.68 | 0.58 | 4.10 | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 10.70 | 0.35 | (1.08 | ) | (0.73 | ) | (0.37 | ) | 9.60 | (6.93 | ) | 9,800 | 0.62 | 0.62 | 0.55 | 3.35 | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 10.20 | 0.37 | 0.51 | 0.88 | (0.38 | ) | 10.70 | 8.78 | 14,437 | 0.61 | 0.61 | 0.54 | 3.50 | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 10.88 | 0.40 | (0.71 | ) | (0.31 | ) | (0.37 | ) | 10.20 | (2.83 | ) | 10 | 0.57 | 0.57 | 0.52 | 3.86 | 49 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 10.49 | 0.39 | 0.37 | 0.76 | (0.37 | ) | 10.88 | 7.44 | 11 | 0.61 | 0.68 | 0.54 | 3.65 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 9.19 | 0.22 | 0.17 | 0.39 | (0.20 | ) | 9.38 | 4.30 | 33,169 | 0.60 | (d) | 0.60 | (d) | 0.49 | (d) | 4.81 | (d) | 13 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 9.59 | 0.39 | (0.41 | ) | (0.02 | ) | (0.38 | ) | 9.19 | (0.22 | ) | 35,077 | 0.60 | 0.60 | 0.50 | 4.18 | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 10.68 | 0.35 | (1.06 | ) | (0.71 | ) | (0.38 | ) | 9.59 | (6.77 | ) | 30,929 | 0.53 | 0.53 | 0.46 | 3.44 | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 10.19 | 0.37 | 0.51 | 0.88 | (0.39 | ) | 10.68 | 8.73 | 20,121 | 0.54 | 0.54 | 0.47 | 3.57 | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 10.88 | 0.40 | (0.72 | ) | (0.32 | ) | (0.37 | ) | 10.19 | (2.94 | ) | 12,639 | 0.57 | 0.57 | 0.52 | 3.86 | 49 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 10.49 | 0.39 | 0.37 | 0.76 | (0.37 | ) | 10.88 | 7.44 | 15,350 | 0.61 | 0.68 | 0.54 | 3.65 | 24 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year ended August 31, 2020, the portfolio turnover calculation excludes the value of securities purchased of $1,007,963,117 in connection with the acquisition of Invesco Oppenheimer Rochester Short Duration High Yield Municipal Fund into the Fund. |
(d) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
26 Invesco Short Duration High Yield Municipal Fund
February 29, 2024
(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 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 to seek federal tax-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 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 Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
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. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices 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, and their value may be adjusted accordingly. 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 is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask 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 using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
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 New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser 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 in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). 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 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.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
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 mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally 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.
27 Invesco Short Duration High Yield Municipal Fund
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
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 an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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. 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 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, 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 and tax-exempt earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
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 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 based on relative net assets of Class R5 and Class R6. 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 the relative value of settled shares. |
G. | Interest, Facilities and Maintenance Fees – Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees, administrative expenses and other expenses associated with establishing and maintaining the line of credit. In addition, interest and administrative expenses related to establishing and maintaining floating rate note obligations, if any, are included. |
H. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
I. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of 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. | Securities Purchased on a When-Issued and Delayed Delivery Basis – The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date. |
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 |
28 Invesco Short Duration High Yield Municipal Fund
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 caption Floating 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 of Interest, 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.
L. | 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 instrument or asset. 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. |
M. | 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 certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service. |
Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
29 Invesco Short Duration High Yield Municipal Fund
Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s operations, universe of potential investment options, and return potential.
The Fund may invest in lower-quality debt securities, i.e., “junk bonds”. Investments in lower-rated securities or unrated securities of comparable quality tend to be more sensitive to economic conditions than higher rated securities. Junk bonds involve a greater risk of default by the issuer because such securities are generally unsecured and are often subordinated to other creditors’ claims. Junk bonds are less liquid than investment grade debt securities and their prices tend to be more volatile.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. 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 $ 100 million | 0.4825 | % | ||
Next $150 million | 0.4325 | % | ||
Next $250 million | 0.4075 | % | ||
Next $4.5 billion | 0.3825 | % | ||
Next $5 billion | 0.3725 | % | ||
Over $10 billion | 0.3525 | % |
For the six months ended February 29, 2024, the effective advisory fee rate 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. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (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 agreed, for an indefinite period, 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 Y, Class R5 and Class R6 shares to 1.50%, 2.25%, 1.25%, 1.25% and 1.25%, respectively, of the Fund’s average daily net assets (the “boundary 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, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
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 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class 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 Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund pursuant to the Class C Plan, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended February 29, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 29, 2024, IDI advised the Fund that IDI retained $9,848 in front-end sales commissions from the sale of Class A shares and $18,301 and $1,432 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. 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. |
30 Invesco Short Duration High Yield Municipal Fund
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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of February 29, 2024. 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 | $– | $ | 1,227,443,214 | $ | 97,739 | $ | 1,227,540,953 | |||||||||
U.S. Dollar Denominated Bonds & Notes | – | – | 4,505,000 | 4,505,000 | ||||||||||||
Common Stocks & Other Equity Interests | – | – | 9,595 | 9,595 | ||||||||||||
Total Investments in Securities | – | 1,227,443,214 | 4,612,334 | 1,232,055,548 | ||||||||||||
Other Investments - Assets | ||||||||||||||||
Investments Matured | – | 3,871,841 | – | 3,871,841 | ||||||||||||
Total Investments | $– | $ | 1,231,315,055 | $ | 4,612,334 | $ | 1,235,927,389 |
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.
Effect of Derivative Investments for the six months ended February 29, 2024
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 Gain (Loss): | ||||
Futures contracts | $(1,270,289) |
The table below summarizes the average notional value of derivatives held during the period.
Futures | ||||
Contracts | ||||
Average notional value | $ | 53,464,063 |
NOTE 5–Security Transactions with Affiliated Funds
The Fund is permitted to purchase securities from or sell securities to certain other affiliated 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 that is or could be considered an “affiliated person” by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers is made in reliance on Rule 17a-7 of the 1940 Act and, to the extent applicable, related SEC staff positions. Each such transaction is effected at the security’s “current market price”, as provided for in these procedures and Rule 17a-7. Pursuant to these procedures, for the six months ended February 29, 2024, the Fund engaged in securities purchases of $15,772,773 and securities sales of $9,895,632, which resulted in net realized gains (losses) of $(105,068).
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 29, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $3,705.
NOTE 7–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees 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 and Borrowings
Effective February 22, 2024, the Fund has entered into a revolving credit and security agreement, which enables the Fund to participate with certain other Invesco Funds in a committed secured borrowing facility that permits borrowings up to $2.0 billion, collectively by certain Invesco Funds, and which will expire on February 20,
31 Invesco Short Duration High Yield Municipal Fund
2025. Prior to February 22, 2024, the revolving credit and security agreement permitted borrowings up to $2.5 billion. The revolving credit and security agreement is secured by the assets of the Fund. The Fund is subject to certain covenants relating to the revolving credit and security agreement. Failure to comply with these restrictions could cause the acceleration of the repayment of the amount outstanding under the revolving credit and security agreement.
During the six months ended February 29, 2024, the Fund’s average daily balance of borrowing under the revolving credit and security agreement was $3,470,330 with an average interest rate of 5.62%. The carrying amount of the Fund’s payable for borrowings as reported on the Statement of Assets and Liabilities approximates its fair value. Expenses under the revolving credit and security agreement are shown in the Statement of Operations as Interest, facilities and maintenance fees.
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 at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
Inverse floating rate obligations resulting from the transfer of bonds to 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 29, 2024 were $12,168,571 and 4.22%, respectively.
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 fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2023, as follows:
Capital Loss Carryforward* | ||||||
Expiration | Short-Term | Long-Term | Total | |||
Not subject to expiration | $67,744,687 | $431,397,898 | $499,142,585 |
* | Capital loss carryforward 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 10–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 29, 2024 was $159,245,106 and $235,643,661, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
| ||||
Aggregate unrealized appreciation of investments | $ | 25,053,533 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (83,772,370 | ) | ||
| ||||
Net unrealized appreciation (depreciation) of investments | $ | (58,718,837 | ) | |
|
Cost of investments for tax purposes is $1,294,646,226.
NOTE 11–Share Information
Summary of Share Activity | ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
February 29, 2024(a) | August 31, 2023 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Sold: | ||||||||||||||||
Class A | 13,137,394 | $ | 120,124,389 | 30,597,276 | $ | 284,779,360 | ||||||||||
Class C | 484,218 | 4,418,812 | 1,583,339 | 14,730,603 | ||||||||||||
Class Y | 24,364,154 | 221,522,811 | 28,101,189 | 261,582,488 | ||||||||||||
Class R6 | 959,984 | 8,804,979 | 3,201,975 | 29,861,840 | ||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 1,043,370 | 9,568,347 | 2,150,104 | 19,975,198 | ||||||||||||
Class C | 62,962 | 576,578 | 150,504 | 1,396,812 | ||||||||||||
Class Y | 544,514 | 5,001,557 | 1,057,979 | 9,834,306 | ||||||||||||
Class R5 | – | – | 277 | 2,588 | ||||||||||||
Class R6 | 53,580 | 492,131 | 107,836 | 1,003,472 | ||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 423,127 | 3,860,974 | 780,861 | 7,266,768 | ||||||||||||
Class C | (423,646 | ) | (3,860,974 | ) | (781,742 | ) | (7,266,768 | ) |
32 Invesco Short Duration High Yield Municipal Fund
Summary of Share Activity | ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
February 29, 2024(a) | August 31, 2023 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Reacquired: | ||||||||||||||||
Class A | (20,970,485 | ) | $ (192,603,116) | (43,626,859 | ) | $ (406,760,513) | ||||||||||
Class C | (1,273,345 | ) | (11,648,041 | ) | (2,943,363 | ) | (27,391,786 | ) | ||||||||
Class Y | (24,608,554 | ) | (224,863,627 | ) | (36,016,747 | ) | (335,339,399 | ) | ||||||||
Class R5 | – | – | (1,019,575 | ) | (9,613,904 | ) | ||||||||||
Class R6 | (1,291,997 | ) | (11,811,441 | ) | (2,720,089 | ) | (25,385,531 | ) | ||||||||
Net increase (decrease) in share activity | (7,494,724 | ) | $ | (70,416,621 | ) | (19,377,035 | ) | $ | (181,324,466 | ) |
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 57% 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. |
33 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, 2023 through February 29, 2024.
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 | ||||||||||||||||||||||||
(5% annual return before | ||||||||||||||||||||||||
ACTUAL | expenses) | |||||||||||||||||||||||
Beginning | Ending | Expenses | Ending | Expenses | Annualized | |||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||||||||||||||
(09/01/23) | (02/29/24)1 | Period2 | (02/29/24) | Period2 | Ratio | |||||||||||||||||||
Class A | $1,000.00 | $1,041.30 | $4.67 | $1,020.29 | $4.62 | 0.92% | ||||||||||||||||||
Class C | 1,000.00 | 1,037.50 | 8.46 | 1,016.56 | 8.37 | 1.67 | ||||||||||||||||||
Class Y | 1,000.00 | 1,041.50 | 3.40 | 1,021.53 | 3.37 | 0.67 | ||||||||||||||||||
Class R5 | 1,000.00 | 1,043.70 | 3.00 | 1,021.93 | 2.97 | 0.59 | ||||||||||||||||||
Class R6 | 1,000.00 | 1,020.40 | 3.01 | 1,021.88 | 3.02 | 0.60 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2023 through February 29, 2024, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
34 Invesco Short Duration High Yield Municipal Fund
A Special Joint Meeting (“Meeting”) of Shareholders of AIM Counselor Series Trust (Invesco Counselor Series Trust), a Delaware statutory trust (“Trust”), was held on January 16, 2024. The Meeting was held for the following purpose:
(1) | Elect 14 trustees to the Board of Trustees of the Trust, each of whom will serve until his or her successor is duly elected and qualified. |
The results of the voting on the above matter were as follows:
Matter | Votes For | Votes Against/Withheld | ||||||||
(1)* | Beth Ann Brown | 3,109,848,785.61 | 65,706,470.15 | |||||||
Carol Deckbar | 3,109,186,378.07 | 66,368,877.70 | ||||||||
Cynthia Hostetler | 3,108,148,647.37 | 67,406,608.40 | ||||||||
Dr. Eli Jones | 3,106,962,123.35 | 68,593,132.42 | ||||||||
Elizabeth Krentzman | 3,109,153,762.02 | 66,401,493.75 | ||||||||
Jeffrey H. Kupor | 3,109,094,174.85 | 66,461,080.92 | ||||||||
Anthony J. LaCava, Jr. | 3,107,453,603.09 | 68,101,652.67 | ||||||||
James Liddy | 3,108,418,832.17 | 67,136,423.60 | ||||||||
Dr. Prema Mathai-Davis | 3,100,922,564.57 | 74,632,691.20 | ||||||||
Joel W. Motley | 3,104,496,522.60 | 71,058,733.17 | ||||||||
Teresa M. Ressel | 3,109,248,693.76 | 66,306,562.01 | ||||||||
Douglas Sharp | 3,108,681,578.09 | 66,873,677.67 | ||||||||
Robert C. Troccoli | 3,104,038,320.81 | 71,516,934.96 | ||||||||
Daniel S. Vandivort | 3,106,373,978.14 | 69,181,277.62 |
* Proposal 1 required approval by a combined vote of all the portfolios of AIM Counselor Series Trust (Invesco Counselor Series Trust).
35 Invesco Short Duration High Yield Municipal 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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, 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/ corporate/about-us/esg. 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. This 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 number(s): 811-09913 and 333-36074 | Invesco Distributors, Inc. | SDHYM-SAR-1 |
Semiannual Report to Shareholders | February 29, 2024 |
Invesco Short Term Municipal Fund
Nasdaq:
A: ORSTX ∎ Y: ORSYX ∎ R6: STMUX
2 | Fund Performance | |
4 | Schedule of Investments | |
22 | Financial Statements | |
25 | Financial Highlights | |
26 | Notes to Financial Statements | |
31 | Fund Expenses | |
32 | Proxy Results |
Beginning in July 2024, amendments adopted by the Securities and Exchange Commission will substantially impact the design, content, and delivery of shareholder reports. These newly designed shareholder reports will highlight key fund information in a clear and concise format and must be mailed to each shareholder that has not elected to receive the reports electronically. Other information, including financial statements, will no longer be included in the shareholder report but will be available at invesco.com/reports, delivered upon request, and filed on a semi-annual basis on Form N-CSR.
If you would like to receive shareholder reports and other communications electronically instead of by mail, you may make that request 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. If you do not make this request or enroll in e-delivery, you will receive future shareholder reports and other communications by mail.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance. Unless otherwise noted, all data is 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, 8/31/23 to 2/29/24, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 1.88 | % | ||
Class Y Shares | 2.01 | |||
Class R6 Shares | 2.04 | |||
S&P Municipal Bond Index▼(Broad Market Index)* | 4.23 | |||
Bloomberg U.S. Aggregate Bond Index▼(Broad Market Index)* | 2.35 | |||
S&P Municipal Bond Short Index▼(Style-Specific Index) | 2.26 | |||
Source(s): ▼RIMES Technologies Corp. | ||||
*Effective April 1, 2024, the Fund changed its broad-based securities market benchmark from the Bloomberg U.S. Aggregate Bond Index to the S&P Municipal Bond Index. The Fund had previously changed its broad-based securities market benchmark from the S&P Municipal Bond Short Index to the Bloomberg U.S. Aggregate Bond Index in December 2023. The Fund believes the S&P Municipal Bond Index is a more appropriate comparison for evaluating the Fund’s performance. |
| |||
The S&P Municipal Bond Index is a broad, market value-weighted index that seeks to measure the performance of the US municipal bond market. |
| |||
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market. |
| |||
The S&P Municipal Bond Short Index tracks fixed-rate tax-free bonds and bonds subject to the alternative minimum tax (AMT) that have maturities between six months and four years. |
| |||
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. |
|
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
2 | Invesco Short Term Municipal Fund |
Average Annual Total Returns |
| |||
As of 2/29/24, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (12/6/10) | 1.94 | % | ||
10 Years | 1.71 | |||
5 Years | 1.54 | |||
1 Year | 3.02 | |||
Class Y Shares | ||||
Inception (12/6/10) | 2.19 | % | ||
10 Years | 1.93 | |||
5 Years | 1.80 | |||
1 Year | 3.28 | |||
Class R6 Shares | ||||
10 Years | 1.89 | % | ||
5 Years | 1.90 | |||
1 Year | 3.35 |
Effective May 24, 2019, Class A and Class Y shares of the Oppenheimer Short Term Municipal Fund, (the predecessor fund), were reorganized into Class A and Class Y shares, respectively, of the Invesco Oppenheimer Short Term Municipal Fund. The Fund was subsequently renamed the Invesco Short Term Municipal Fund (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class A and Class Y shares are those for Class A and Class Y shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R6 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of the predecessor fund’s Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
Class A, Class Y and Class R6 shares do not have a front-end sales charge or a contingent deferred sales charge (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 Short Term Municipal Fund |
February 29, 2024
(Unaudited)
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
Municipal Obligations–98.06% | ||||||||||||||
Alabama–2.24% | ||||||||||||||
Auburn University; Series 2015 A, Ref. RB | 5.00% | 06/01/2029 | $ 1,000 | $ 1,021,030 | ||||||||||
Baldwin (County of), AL Public Building Authority (DHR); Series 2007 A, Revenue Wts. (INS - SGI)(a) | 4.38% | 06/01/2028 | 10 | 10,007 | ||||||||||
Black Belt Energy Gas District (The) (No. 4); Series 2019 A-1, RB(b) | 4.00% | 12/01/2025 | 12,260 | 12,286,272 | ||||||||||
Black Belt Energy Gas District (The) (No. 5); Series 2020 A-1, RB(b) | 4.00% | 10/01/2026 | 5,000 | 5,015,819 | ||||||||||
Southeast Alabama Gas Supply District (The) (No. 2); Series 2018 A, RB(b)(c) | 4.00% | 06/01/2024 | 16,480 | 16,489,572 | ||||||||||
UAB Medicine Finance Authority; Series 2016 B, Ref. RB | 5.00% | 09/01/2035 | 2,500 | 2,586,346 | ||||||||||
37,409,046 | ||||||||||||||
Alaska–0.26% | ||||||||||||||
Alaska (State of) International Airports System; Series 2016 A, Ref. RB | 5.00% | 10/01/2028 | 1,250 | 1,282,616 | ||||||||||
Matanuska-Susitna (Borough of), AK; Series 2014 B, GO Bonds | 5.00% | 11/01/2026 | 1,000 | 1,002,508 | ||||||||||
Northern Tobacco Securitization Corp.; Series 2021 B-1, Ref. RB | 4.00% | 06/01/2050 | 1,955 | 1,980,696 | ||||||||||
4,265,820 | ||||||||||||||
Arizona–2.49% | ||||||||||||||
Arizona (State of) Game & Fish Department & Commission; Series 2006, RB | 5.00% | 07/01/2032 | 105 | 105,121 | ||||||||||
Arizona (State of) Health Facilities Authority (Scottsdale Lincoln Hospital); | ||||||||||||||
Series 2014, Ref. RB | 5.00% | 12/01/2027 | 100 | 100,988 | ||||||||||
Series 2014, Ref. RB | 5.00% | 12/01/2030 | 2,710 | 2,735,830 | ||||||||||
Arizona (State of) Industrial Development Authority; Series 2024, RB(b) | 5.00% | 09/01/2026 | 1,100 | 1,132,821 | ||||||||||
Arizona (State of) Industrial Development Authority (Social Bonds); Series 2023, RB | 5.00% | 11/01/2028 | 1,500 | 1,616,369 | ||||||||||
Arizona State University; | ||||||||||||||
Series 2015 D, RB | 5.00% | 07/01/2030 | 1,450 | 1,484,516 | ||||||||||
Series 2016 C, RB | 5.00% | 07/01/2030 | 1,060 | 1,103,563 | ||||||||||
Chandler (City of), AZ Industrial Development Authority (Intel Corp.); Series | 5.00% | 09/01/2027 | 10,000 | 10,344,899 | ||||||||||
Glendale Municipal Property Corp.; | ||||||||||||||
Series 2012 B, Ref. RB | 5.00% | 07/01/2025 | 1,000 | 1,001,249 | ||||||||||
Series 2012 B, Ref. RB | 5.00% | 07/01/2029 | 3,550 | 3,554,051 | ||||||||||
Series 2012 B, Ref. RB | 5.00% | 07/01/2033 | 570 | 570,642 | ||||||||||
Maricopa County School District No. 7; Series 2009 B, GO Bonds (INS - AGM)(a) | 4.50% | 07/01/2024 | 10 | 10,008 | ||||||||||
Phoenix Civic Improvement Corp.; | ||||||||||||||
Series 2014 B, Ref. RB | 5.00% | 07/01/2027 | 2,565 | 2,578,144 | ||||||||||
Series 2016, Ref. RB | 5.00% | 07/01/2029 | 1,210 | 1,267,866 | ||||||||||
Series 2017, Ref. RB | 5.00% | 07/01/2038 | 5,145 | 5,333,414 | ||||||||||
Pima (County of), AZ; Series 2014, RB | 5.00% | 07/01/2028 | 745 | 745,844 | ||||||||||
Pima (County of), AZ Industrial Development Authority (Excalibur Charter School (The)); Series 2016, Ref. RB(e) | 5.00% | 09/01/2026 | 80 | 79,944 | ||||||||||
Pima (County of), AZ Industrial Development Authority (Paideia Academies (The)); Series 2019, RB | 4.13% | 07/01/2029 | 185 | 176,587 | ||||||||||
Salt Verde Financial Corp.; Series 2007, RB | 5.25% | 12/01/2025 | 4,000 | 4,082,789 | ||||||||||
Sun Devil Energy Center LLC; Series 2008, Ref. RB | 5.00% | 07/01/2027 | 100 | 100,121 | ||||||||||
Sun Devil Energy Center LLC (Arizona State University); Series 2008, Ref. RB | 5.00% | 07/01/2030 | 155 | 155,169 | ||||||||||
University of Arizona (The) (Stimulus Plan for Economic and Educational Development); Series 2014, RB | 5.00% | 08/01/2034 | 920 | 924,139 | ||||||||||
University of Arizona Board of Regents; Series 2022 B, RB | 5.00% | 07/01/2038 | 1,300 | 1,483,951 | ||||||||||
University of Arizona Board of Regents (Arizona Biomedical Research Collaborative Building); Series 2006, COP (INS - AMBAC)(a) | 4.38% | 06/01/2024 | 10 | 10,008 | ||||||||||
Westpark Community Facility District; Series 2016, Ref. GO Bonds | 4.00% | 07/15/2025 | 670 | 666,872 | ||||||||||
Yavapai (County of), AZ Industrial Development Authority; Series 2015 A, Ref. RB(e) | 3.90% | 09/01/2024 | 185 | 184,102 | ||||||||||
Yavapai (County of), AZ Industrial Development Authority (The) (Yavapai Regional Medical Center); Series 2013 A, Ref. RB | 5.00% | 08/01/2028 | 100 | 100,035 | ||||||||||
41,649,042 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 | Invesco Short Term Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
California–4.96% | ||||||||||||||
Aliso Viejo Community Facility District; Series 2014, Ref. RB(b)(c) | 5.00% | 03/01/2024 | $ | 4,285 | $ 4,285,000 | |||||||||
Anaheim (City of), CA Public Financing Authority; Series 1997 A, RB | 6.00% | 09/01/2024 | 1,265 | 1,281,184 | ||||||||||
California (State of); | ||||||||||||||
Series 2012, GO Bonds (INS - AGM)(a) | 4.00% | 09/01/2037 | 1,000 | 1,000,289 | ||||||||||
Series 2012, Ref. GO Bonds | 5.00% | 09/01/2025 | 10 | 10,015 | ||||||||||
Series 2013, Ref. GO Bonds | 5.00% | 10/01/2026 | 5 | 5,006 | ||||||||||
Series 2014, Ref. GO Bonds | 5.00% | 10/01/2034 | 9,200 | 9,286,924 | ||||||||||
Series 2017, Ref. GO Bonds | 5.00% | 11/01/2029 | 3,695 | 4,022,974 | ||||||||||
Series 2019, Ref. GO Bonds | 5.00% | 04/01/2033 | 9,000 | 9,011,164 | ||||||||||
California (State of) Community Choice Financing Authority; Series 2023, RB(b) | 5.25% | 04/01/2030 | 2,945 | 3,144,324 | ||||||||||
California (State of) Health Facilities Financing Authority; Series 2024 A, RB | 3.85% | 11/15/2027 | 1,850 | 1,854,142 | ||||||||||
California (State of) Health Facilities Financing Authority (Adventist Health System); Series 2013 A, RB | 5.00% | 03/01/2025 | 2,720 | 2,721,715 | ||||||||||
California (State of) Health Facilities Financing Authority (City of Hope); Series 2012 A, RB | 5.00% | 11/15/2024 | 100 | 100,268 | ||||||||||
California (State of) Health Facilities Financing Authority (St. Joseph Health System); Series 2013 A, RB | 5.00% | 07/01/2024 | 405 | 405,211 | ||||||||||
California (State of) Health Facilities Financing Authority (Sutter Health); | ||||||||||||||
Series 2017 A, Ref. RB | 5.00% | 11/15/2032 | 1,285 | 1,386,217 | ||||||||||
Series 2018 A, RB | 5.00% | 11/15/2032 | 1,230 | 1,326,885 | ||||||||||
California (State of) Housing Finance Agency (Social Certificates); | ||||||||||||||
Series 2021-2A, Revenue Ctfs. (CEP - FHLMC) | 3.75% | 03/25/2035 | 3,876 | 3,802,458 | ||||||||||
Series 2023-1, RB | 4.38% | 09/20/2036 | 2,488 | 2,463,515 | ||||||||||
California (State of) Municipal Finance Authority (Waste Management, Inc.); Series 2022 A, RB(b)(d) | 4.13% | 10/01/2025 | 5,000 | 5,003,283 | ||||||||||
California (State of) Public Finance Authority (Enso Village) (Green Bonds); Series 2021 B-3, RB(e) | 2.13% | 11/15/2027 | 1,240 | 1,235,823 | ||||||||||
California (State of) Public Works Board (California Community Colleges); Series 2005 E, RB (INS - NATL)(a) | 4.50% | 10/01/2026 | 170 | 170,149 | ||||||||||
Glendale (City of), CA; | ||||||||||||||
Series 2013, RB(b)(c) | 5.00% | 05/28/2024 | 125 | 125,512 | ||||||||||
Series 2013, Ref. RB(b)(c) | 5.00% | 05/28/2024 | 175 | 175,716 | ||||||||||
Howell Mountain Elementary School District (Election of 2005); Series 2007, GO Bonds (INS - AGM)(a)(f) | 0.00% | 08/01/2027 | 695 | 608,856 | ||||||||||
Imperial Irrigation District; | ||||||||||||||
Series 2012 A, Ref. RB | 5.00% | 11/01/2024 | 325 | 325,435 | ||||||||||
Series 2012 A, Ref. RB | 5.00% | 11/01/2027 | 225 | 225,283 | ||||||||||
Lodi (City of), CA; Series 2004 A, COP (INS - NATL)(a) | 4.75% | 10/01/2024 | 10 | 10,011 | ||||||||||
Long Beach Unified School District; | ||||||||||||||
Series 2012, Ref. GO Bonds | 5.00% | 08/01/2025 | 675 | 675,935 | ||||||||||
Series 2012, Ref. GO Bonds | 5.00% | 08/01/2028 | 775 | 780,943 | ||||||||||
Series 2012, Ref. GO Bonds | 5.00% | 08/01/2029 | 100 | 100,124 | ||||||||||
Los Angeles (Port of), CA; Series 2014 A, Ref. RB(d) | 5.00% | 08/01/2034 | 2,470 | 2,476,041 | ||||||||||
Los Angeles County Development Authority; Series 2021, RB(b) | 0.38% | 05/01/2024 | 10,000 | 9,922,510 | ||||||||||
Los Angeles Unified School District; | ||||||||||||||
Series 2014 C, Ref. GO Bonds | 5.00% | 07/01/2025 | 1,350 | 1,357,644 | ||||||||||
Series 2014 C, Ref. GO Bonds | 5.00% | 07/01/2028 | 2,750 | 2,763,196 | ||||||||||
Series 2014 C, Ref. GO Bonds | 5.00% | 07/01/2029 | 3,240 | 3,256,075 | ||||||||||
Northern California Tobacco Securitization Authority; Series 2021 B-1, Ref. RB | 4.00% | 06/01/2049 | 1,450 | 1,493,757 | ||||||||||
Pasadena (City of), CA; Series 2013 A, Ref. RB | 5.00% | 06/01/2030 | 320 | 320,365 | ||||||||||
Peninsula Corridor Joint Powers Board; Series 2019 A, Ref. RB | 5.00% | 10/01/2044 | 1,285 | 1,326,742 | ||||||||||
San Francisco (City & County of), CA; Series 2015 R-1, Ref. GO Bonds | 5.00% | 06/15/2025 | 370 | 370,380 | ||||||||||
San Francisco (City & County of), CA (Multiple Capital Imporovement); Series 2012 A, COP | 5.00% | 04/01/2031 | 250 | 250,324 | ||||||||||
San Jose (City of), CA; Series 2017 B, Ref. RB | 5.00% | 03/01/2042 | 3,730 | 3,898,229 | ||||||||||
82,979,624 | ||||||||||||||
Colorado–1.03% | ||||||||||||||
Adams & Arapahoe Joint School District No. 28J Aurora; Series 2017 A, Ref. GO Bonds | 5.00% | 12/01/2032 | 2,700 | 2,849,208 | ||||||||||
Colorado (State of) Health Facilities Authority (Aberdeen Ridge); Series 2021 B, RB | 2.13% | 05/15/2028 | 1,000 | 943,740 | ||||||||||
Colorado (State of) Health Facilities Authority (Adventhealth Obligated Group); Series 2016, Ref. RB | 5.00% | 11/15/2028 | 1,310 | 1,370,081 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Short Term Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
Colorado–(continued) | ||||||||||||||
Colorado (State of) Regional Transportation District; Series 2015, COP | 5.00% | 06/01/2027 | $ | 1,805 | $ 1,842,294 | |||||||||
Colorado (State of) Regional Transportation District (Fastracks); Series 2016 A, RB | 5.00% | 11/01/2036 | 2,715 | 2,835,424 | ||||||||||
Denver (City & County of), CO; Series 2016 A, Ref. RB | 5.00% | 11/15/2032 | 1,770 | 1,859,102 | ||||||||||
Denver City & County School District No. 1; Series 2013 C, COP | 5.00% | 12/15/2024 | 100 | 100,131 | ||||||||||
Larimer County School District No. R-1 Poudre; Series 2018, GO Bonds | 5.00% | 12/15/2040 | 2,660 | 2,864,180 | ||||||||||
Regional Transportation District (Fastracks); Series 2017 A, RB | 5.00% | 11/01/2033 | 1,000 | 1,050,872 | ||||||||||
Weld County School District No. Re-1; Series 2017, GO Bonds (INS - AGM)(a) | 5.00% | 12/15/2031 | 1,500 | 1,579,346 | ||||||||||
17,294,378 | ||||||||||||||
Connecticut–3.12% | ||||||||||||||
Connecticut (State of); | ||||||||||||||
Series 2014 E, GO Bonds | 5.00% | 09/01/2026 | 13,200 | 13,309,808 | ||||||||||
Series 2014 F, GO Bonds | 5.00% | 11/15/2033 | 1,940 | 1,955,728 | ||||||||||
Series 2016 E, GO Bonds | 5.00% | 10/15/2034 | 3,280 | 3,439,622 | ||||||||||
Connecticut (State of) Health & Educational Facilities Authority (Hartford Healthcare); | ||||||||||||||
Series 2014 E, RB | 5.00% | 07/01/2025 | 125 | 125,618 | ||||||||||
Series 2014 E, RB | 5.00% | 07/01/2026 | 1,000 | 1,002,739 | ||||||||||
Series 2014 E, RB | 5.00% | 07/01/2027 | 1,265 | 1,268,546 | ||||||||||
Connecticut (State of) Health & Educational Facilities Authority (New Haven Hospital); | ||||||||||||||
Series 2013 N, RB | 5.00% | 07/01/2027 | 225 | 225,255 | ||||||||||
Series 2014 A, RB | 5.00% | 07/01/2032 | 10,650 | 10,699,616 | ||||||||||
Connecticut (State of) Health & Educational Facilities Authority (Yale University); Series 2015, Ref. RB(b) | 0.38% | 07/12/2024 | 20,000 | 19,694,714 | ||||||||||
South Central Connecticut Regional Water Authority; Twenty Ninth Series 2014, Ref. RB | 5.00% | 08/01/2025 | 500 | 500,704 | ||||||||||
52,222,350 | ||||||||||||||
District of Columbia–0.82% | ||||||||||||||
District of Columbia; | ||||||||||||||
Series 2012, RB | 5.00% | 12/01/2024 | 280 | 280,358 | ||||||||||
Series 2012, RB | 5.00% | 12/01/2026 | 100 | 100,119 | ||||||||||
Series 2023 A, GO Bonds | 5.00% | 01/01/2037 | 3,000 | 3,514,125 | ||||||||||
District of Columbia (Children’s Hospital Obligated Group); Series 2015, Ref. RB | 5.00% | 07/15/2040 | 3,190 | 3,255,777 | ||||||||||
Washington Metropolitan Area Transit Authority; | ||||||||||||||
Series 2017 B, RB | 5.00% | 07/01/2031 | 1,110 | 1,182,728 | ||||||||||
Series 2017 B, RB | 5.00% | 07/01/2035 | 1,400 | 1,483,667 | ||||||||||
Series 2018, RB | 5.00% | 07/01/2043 | 3,750 | 3,899,859 | ||||||||||
13,716,633 | ||||||||||||||
Florida–7.13% | ||||||||||||||
Board of Governors of Florida Atlantic University; Series 2016 A, Ref. RB | 5.00% | 07/01/2031 | 1,000 | 1,039,069 | ||||||||||
Broward (County of), FL; | ||||||||||||||
Series 2012 Q-1, RB | 5.00% | 10/01/2024 | 1,850 | 1,851,785 | ||||||||||
Series 2013 B, RB | 5.00% | 10/01/2026 | 260 | 260,161 | ||||||||||
Broward (County of), FL School Board; | ||||||||||||||
Series 2015 B, Ref. COP | 5.00% | 07/01/2031 | 6,640 | 6,756,470 | ||||||||||
Series 2016 A, Ref. COP | 5.00% | 07/01/2032 | 4,135 | 4,280,477 | ||||||||||
Capital Trust Agency, Inc. (Gardens Apartements); Series 2015 A, RB | 3.50% | 07/01/2025 | 330 | 297,000 | ||||||||||
Central Florida Expressway Authority; | ||||||||||||||
Series 2017, Ref. RB | 5.00% | 07/01/2038 | 1,535 | 1,616,587 | ||||||||||
Series 2017, Ref. RB | 5.00% | 07/01/2039 | 2,020 | 2,121,680 | ||||||||||
Citizens Property Insurance, Inc.; Series 2015 A-1, RB(b)(c) | 5.00% | 12/01/2024 | 20,320 | 20,563,639 | ||||||||||
Florida Housing Finance Corp. (Social Bonds); Series 2022-3, RB (CEP - GNMA) | 5.50% | 01/01/2054 | 4,345 | 4,556,608 | ||||||||||
Gainesville (City of), FL; Series 2017 A, RB | 5.00% | 10/01/2031 | 1,265 | 1,360,173 | ||||||||||
Greater Orlando Aviation Authority; Series 2016 B, RB | 5.00% | 10/01/2039 | 2,375 | 2,458,803 | ||||||||||
Hialeah (City of), FL Utility System; Series 2022, Ref. RB | 5.00% | 10/01/2035 | 2,170 | 2,407,006 | ||||||||||
Hillsborough (County of), FL Aviation Authority (Tampa International Airport); Series 2018 F, RB | 5.00% | 10/01/2043 | 1,305 | 1,386,144 | ||||||||||
JEA Electric System; Series 2017 B, Ref. RB | 5.00% | 10/01/2032 | 3,410 | 3,643,176 | ||||||||||
JEA Water & Sewer System; Series 2017 B, Ref. RB | 5.00% | 10/01/2033 | 4,000 | 4,272,152 | ||||||||||
Lake (County of), FL School Board; Series 2015 B, Ref. COP (INS - AGM)(a) | 5.00% | 06/01/2031 | 2,000 | 2,027,898 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Short Term Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
Florida–(continued) | ||||||||||||||
Miami (City of) & Dade (County of), FL School Board; | ||||||||||||||
Series 2014 D, Ref. COP | 5.00% | 11/01/2030 | $ | 1,860 | $ 1,879,456 | |||||||||
Series 2014 D, Ref. COP | 5.00% | 11/01/2031 | 1,420 | 1,434,297 | ||||||||||
Series 2016, GO Bonds | 5.00% | 03/15/2037 | 2,000 | 2,053,315 | ||||||||||
Series 2017, GO Bonds | 5.00% | 03/15/2032 | 1,380 | 1,459,891 | ||||||||||
Miami-Dade (County of), FL; | ||||||||||||||
Series 2012 B, Ref. RB | 5.00% | 10/01/2024 | 1,285 | 1,286,486 | ||||||||||
Series 2013, GO Bonds | 5.00% | 07/01/2030 | 2,000 | 2,046,823 | ||||||||||
Series 2014, RB | 5.00% | 10/01/2032 | 1,160 | 1,168,459 | ||||||||||
Series 2015 B, Ref. GO Bonds | 5.00% | 07/01/2029 | 1,105 | 1,112,394 | ||||||||||
Miami-Dade (County of), FL Educational Facilities Authority (University of Miami); | ||||||||||||||
Series 2012 A, RB | 5.00% | 04/01/2024 | 250 | 250,737 | ||||||||||
Series 2012 A, RB | 5.00% | 04/01/2027 | 525 | 525,427 | ||||||||||
Series 2012 A, RB | 5.00% | 04/01/2028 | 1,500 | 1,501,313 | ||||||||||
Series 2015 A, Ref. RB | 5.00% | 04/01/2032 | 1,000 | 1,014,078 | ||||||||||
Miami-Dade (County of), FL Expressway Authority; Series 2010 A, RB | 5.00% | 07/01/2040 | 10,000 | 10,035,714 | ||||||||||
Miami-Dade (County of), FL Housing Finance Authority; Series 2023, RB(b) | 3.55% | 01/01/2026 | 6,750 | 6,709,972 | ||||||||||
Miami-Dade (County of), FL Housing Finance Authority (Palm Lakes); Series 2012, RB (LOC - Fannie Mae)(g) | 4.05% | 01/15/2028 | 8,280 | 8,285,215 | ||||||||||
Miami-Dade (County of), FL Transit System; Series 2015, Ref. RB | 5.00% | 07/01/2031 | 2,210 | 2,258,558 | ||||||||||
Orlando (City of), FL; Series 2013, Ref. RB | 5.00% | 10/01/2027 | 750 | 750,606 | ||||||||||
Osceola (County of), FL; Series 2016 A, Ref. RB | 5.00% | 10/01/2030 | 1,000 | 1,021,583 | ||||||||||
Palm Beach County School District; | ||||||||||||||
Series 2015, Ref. COP | 5.00% | 08/01/2029 | 1,040 | 1,062,916 | ||||||||||
Series 2015, Ref. COP | 5.00% | 08/01/2032 | 1,000 | 1,022,174 | ||||||||||
Polk (County of), FL; | ||||||||||||||
Series 2012, Ref. RB | 5.00% | 10/01/2024 | 125 | 125,169 | ||||||||||
Series 2012, Ref. RB | 5.00% | 10/01/2025 | 165 | 165,984 | ||||||||||
Pompano Beach (City of), FL (John Knox Village); | ||||||||||||||
Series 2021 B-1, RB | 2.00% | 01/01/2029 | 1,545 | 1,372,903 | ||||||||||
Series 2021 B-2, RB | 1.45% | 01/01/2027 | 2,080 | 1,911,860 | ||||||||||
Sarasota (County of), FL Public Hospital District (Sarasota Memorial Hospital); Series 1998 B, Ref. RB (INS - NATL)(a) | 5.25% | 07/01/2024 | 125 | 125,687 | ||||||||||
St. Johns (County of), FL Housing Finance Authority (Oaks at St. John); Series 2023 B, RB(b)(e) | 5.50% | 12/01/2026 | 6,000 | 5,962,871 | ||||||||||
Sunrise Lakes Phase 4 Recreation District; Series 2008, Ref. GO Bonds (INS - AGC)(a) | 4.13% | 08/01/2024 | 20 | 20,013 | ||||||||||
Tallahassee (City of), FL; Series 2018, RB | 5.00% | 10/01/2029 | 1,715 | 1,728,075 | ||||||||||
119,190,804 | ||||||||||||||
Georgia–3.73% | ||||||||||||||
Atlanta (City of), GA Urban Residential Finance Authority (GE Tower Apartments); Series 2023 B, RB(b) | 5.75% | 06/01/2025 | 3,000 | 2,988,704 | ||||||||||
Burke (County of), GA Development Authority (Georgia Power Co. Plant Vogtle); | ||||||||||||||
Series 2012, Ref. RB(b) | 2.88% | 08/19/2025 | 5,000 | 4,903,486 | ||||||||||
Series 2013, Ref. RB(b) | 2.93% | 03/12/2024 | 17,920 | 17,914,438 | ||||||||||
College Park (City of), GA (Atlanta International Airport); Series 2006 B, RB (INS - NATL)(a) | 4.38% | 01/01/2026 | 20 | 20,016 | ||||||||||
DeKalb (County of), IL Development Authority (The Globe Academy, Inc.); Series 2024, RB | 4.00% | 06/01/2035 | 735 | 739,016 | ||||||||||
Fulton (County of), GA; Series 2013, Ref. RB | 5.00% | 01/01/2027 | 1,605 | 1,612,491 | ||||||||||
Georgia (State of) Municipal Electric Authority (Project One); | ||||||||||||||
Series 2015 A, Ref. RB | 5.00% | 01/01/2031 | 1,820 | 1,841,395 | ||||||||||
Series 2015 A, Ref. RB | 5.00% | 01/01/2032 | 2,030 | 2,053,708 | ||||||||||
Series 2015 A, Ref. RB | 5.00% | 01/01/2034 | 1,900 | 1,920,349 | ||||||||||
Main Street Natural Gas, Inc.; | ||||||||||||||
Series 2019 B, RB(b) | 4.00% | 12/02/2024 | 12,225 | 12,248,476 | ||||||||||
Series 2019 C, RB(b) | 4.00% | 09/01/2026 | 7,000 | 7,038,454 | ||||||||||
Series 2021 A, RB(b) | 4.00% | 09/01/2027 | 5,120 | 5,138,180 | ||||||||||
Series 2021 C, RB | 4.00% | 12/01/2025 | 1,100 | 1,096,395 | ||||||||||
Series 2022 C, RB(e) | 4.00% | 11/01/2024 | 1,800 | 1,787,660 | ||||||||||
Series 2022 C, RB(b)(e) | 4.00% | 11/01/2027 | 1,000 | 968,506 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Short Term Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
Georgia–(continued) | ||||||||||||||
Milledgeville (City of) & Baldwin (County of), GA Development Authority; Series 2003 A, RB (INS - AGC)(a) | 4.50% | 09/01/2025 | $ | 20 | $ 20,013 | |||||||||
62,291,287 | ||||||||||||||
Hawaii–0.32% | ||||||||||||||
Hawaii (State of); Series 2014 EO, GO Bonds | 5.00% | 08/01/2028 | 1,880 | 1,893,276 | ||||||||||
Honolulu (City & County of), HI; Series 2023, RB(b) | 5.00% | 06/01/2026 | 2,125 | 2,192,779 | ||||||||||
Honolulu (City & County of), HI Board of Water Supply; Series 2014 A, Ref. RB | 5.00% | 07/01/2025 | 1,335 | 1,342,777 | ||||||||||
5,428,832 | ||||||||||||||
Illinois–5.91% | ||||||||||||||
Chicago (City of), IL; Series 2008 C, Ref. RB | 5.00% | 01/01/2031 | 2,500 | 2,528,875 | ||||||||||
Chicago (City of), IL (O’Hare International Airport); | ||||||||||||||
Series 2015 B, Ref. RB | 5.00% | 01/01/2027 | 1,350 | 1,368,157 | ||||||||||
Series 2015 B, Ref. RB | 5.00% | 01/01/2031 | 1,510 | 1,531,327 | ||||||||||
Series 2015 B, Ref. RB | 5.00% | 01/01/2033 | 1,120 | 1,135,654 | ||||||||||
Series 2016 C, Ref. RB | 5.00% | 01/01/2038 | 3,000 | 3,072,263 | ||||||||||
Chicago (City of), IL Midway International Airport; Series 2014 A, Ref. RB(b)(c)(d) | 5.00% | 04/03/2024 | 2,090 | 2,092,460 | ||||||||||
Collinsville (City of), IL Area Recreation District; | ||||||||||||||
Series 2004, GO Bonds (INS - NATL)(a) | 4.60% | 12/01/2025 | 350 | 350,320 | ||||||||||
Series 2004, GO Bonds (INS - NATL)(a) | 4.65% | 12/01/2026 | 450 | 450,390 | ||||||||||
Series 2007, Ref. GO Bonds (INS - AMBAC)(a) | 4.00% | 12/01/2027 | 65 | 65,010 | ||||||||||
Cook (County of), IL; | ||||||||||||||
Series 2016 A, Ref. GO Bonds | 5.00% | 11/15/2029 | 3,100 | 3,241,248 | ||||||||||
Series 2016 A, Ref. GO Bonds | 5.00% | 11/15/2030 | 2,750 | 2,880,381 | ||||||||||
Cook County Community High School District No. 212 Leyden; Series 2016 C, RB (INS - BAM)(a) | 5.00% | 12/01/2028 | 2,385 | 2,412,362 | ||||||||||
Cook County High School District No. 202 Evanston Township; Series 2016, Ref. GO Bonds | 5.00% | 12/01/2027 | 1,000 | 1,032,547 | ||||||||||
Elk Grove Village (Village of), IL; Series 2017, GO Bonds | 5.00% | 01/01/2035 | 1,000 | 1,058,342 | ||||||||||
Illinois (State of); | ||||||||||||||
Series 2016, GO Bonds | 5.00% | 11/01/2025 | 2,000 | 2,052,302 | ||||||||||
Series 2017 D, GO Bonds | 5.00% | 11/01/2025 | 3,275 | 3,360,851 | ||||||||||
Series 2018 A, GO Bonds | 4.00% | 05/01/2024 | 2,085 | 2,086,192 | ||||||||||
Series 2020 A, GO Bonds | 5.00% | 11/01/2026 | 2,935 | 3,064,721 | ||||||||||
Series 2021 A, GO Bonds | 5.00% | 03/01/2024 | 2,250 | 2,250,000 | ||||||||||
Series 2022 B, Ref. GO Bonds | 5.00% | 03/01/2024 | 1,515 | 1,515,000 | ||||||||||
Illinois (State of) Development Finance Authority (CITGO Petroleum Corp.); Series 2002, RB(d) | 8.00% | 06/01/2032 | 560 | 560,569 | ||||||||||
Illinois (State of) Finance Authority; Series 2016 A, Ref. RB | 5.00% | 10/01/2035 | 2,000 | 2,074,036 | ||||||||||
Illinois (State of) Finance Authority (Advocate Health Care Network); | ||||||||||||||
Series 2013, RB | 5.00% | 06/01/2024 | 1,220 | 1,220,818 | ||||||||||
Series 2014, Ref. RB | 5.00% | 08/01/2025 | 1,505 | 1,515,008 | ||||||||||
Illinois (State of) Finance Authority (Lutheran Communities Obligated Group); | ||||||||||||||
Series 2019 A, Ref. RB (Acquired 11/27/2019; Cost $ 452,889)(h) | 5.00% | 11/01/2025 | 440 | 436,731 | ||||||||||
Series 2019 A, Ref. RB (Acquired 11/27/2019; Cost $ 479,672)(h) | 5.00% | 11/01/2026 | 460 | 454,126 | ||||||||||
Illinois (State of) Finance Authority (The University of Chicago); Series 2014 A, Ref. RB | 5.00% | 10/01/2027 | 10 | 10,078 | ||||||||||
Illinois (State of) Finance Authority (Uchicago Medicine); Series 2022 B-2, RB(b) | 5.00% | 08/15/2027 | 9,500 | 10,077,495 | ||||||||||
Illinois (State of) Housing Development Authority; Series 2005, RB (INS - AGM)(a) | 4.60% | 09/01/2025 | 10 | 10,011 | ||||||||||
Illinois (State of) Housing Development Authority (6900 Crandon); Series 2023, RB(b) | 5.00% | 02/01/2026 | 2,400 | 2,453,386 | ||||||||||
Illinois (State of) Housing Development Authority (South Shore HHDC); Series 2023, RB(b) | 5.00% | 02/01/2026 | 2,170 | 2,218,270 | ||||||||||
Illinois (State of) Toll Highway Authority; | ||||||||||||||
Series 2013 A, RB(b)(c) | 5.00% | 04/02/2024 | 4,600 | 4,605,590 | ||||||||||
Series 2013 A, RB(b)(c) | 5.00% | 04/02/2024 | 2,740 | 2,743,330 | ||||||||||
Series 2013 A, RB(b)(c) | 5.00% | 04/02/2024 | 11,035 | 11,048,411 | ||||||||||
Series 2014 B, RB(b)(c) | 5.00% | 04/02/2024 | 1,850 | 1,852,175 | ||||||||||
Series 2014 B, RB(b)(c) | 5.00% | 04/02/2024 | 1,190 | 1,191,399 | ||||||||||
Series 2014 B, RB(b)(c) | 5.00% | 04/02/2024 | 15,000 | 15,017,634 | ||||||||||
Series 2016 B, RB | 5.00% | 01/01/2031 | 1,000 | 1,045,875 | ||||||||||
Madison-Macoupin Etc Counties Community College District No. 536; Series 2015 A, Ref. GO Bonds (INS - BAM)(a) | 5.00% | 11/01/2027 | 1,335 | 1,345,659 | ||||||||||
Rockford (City of), IL (Waterworks System Alternative Revenue Source); Series 2010, GO Bonds | 3.75% | 12/15/2025 | 280 | 280,123 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Short Term Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
Illinois–(continued) | ||||||||||||||
University of Illinois; Series 2008 A, Ref. COP (INS - AGM)(a) | 5.25% | 10/01/2026 | $ | 1,020 | $ 1,021,757 | |||||||||
West Chicago Fire Protection District; Series 2008, GO Bonds (INS - NATL)(a) | 4.75% | 01/01/2029 | 15 | 15,014 | ||||||||||
98,745,897 | ||||||||||||||
Indiana–0.39% | ||||||||||||||
Gary (City of), IN & Chicago (City of), IL International Airport Authority (Gary/Chicago International Airport); Series 2014, RB(b)(c)(d) | 5.50% | 04/27/2024 | 195 | 195,552 | ||||||||||
Indiana (State of) Finance Authority; Series 2014 A, RB | 5.00% | 10/01/2026 | 1,750 | 1,767,932 | ||||||||||
Indiana (State of) Municipal Power Agency; Series 2016 C, Ref. RB | 5.00% | 01/01/2039 | 1,000 | 1,028,782 | ||||||||||
Indianapolis Local Public Improvement Bond Bank; Series 2015, Ref. RB(d) | 5.00% | 01/01/2030 | 3,250 | 3,281,640 | ||||||||||
Merrillville (Town of), IN (Belvedere Housing); Series 2016, RB | 5.05% | 04/01/2026 | 300 | 291,666 | ||||||||||
6,565,572 | ||||||||||||||
Iowa–1.38% | ||||||||||||||
Iowa (State of) Finance Authority (Unitypoint Health); | ||||||||||||||
Series 2014 C, RB | 5.00% | 02/15/2031 | 810 | 814,352 | ||||||||||
Series 2014 C, RB | 5.00% | 02/15/2032 | 3,405 | 3,423,294 | ||||||||||
Iowa (State of) Higher Education Loan Authority (Grinnell College); Series 2014, Ref. RB | 5.00% | 12/01/2032 | 1,675 | 1,697,793 | ||||||||||
Iowa (State of) Tobacco Settlement Authority; Series 2021 B-1, Ref. RB | 4.00% | 06/01/2049 | 3,295 | 3,327,938 | ||||||||||
PEFA, Inc.; Series 2019, RB(b) | 5.00% | 09/01/2026 | 13,500 | 13,788,585 | ||||||||||
23,051,962 | ||||||||||||||
Kansas–0.71% | ||||||||||||||
University of Kansas Hospital Authority; | ||||||||||||||
Series 2015, Ref. RB | 5.00% | 09/01/2030 | 1,930 | 1,976,424 | ||||||||||
Series 2015, Ref. RB | 5.00% | 09/01/2032 | 2,765 | 2,823,316 | ||||||||||
Series 2015, Ref. RB | 5.00% | 09/01/2035 | 2,000 | 2,037,697 | ||||||||||
Valley Center (City of), KS; Series 2023-1, GO Bonds | 4.38% | 12/01/2025 | 5,000 | 5,008,384 | ||||||||||
11,845,821 | ||||||||||||||
Kentucky–2.00% | ||||||||||||||
Jefferson County Capital Projects Corp.; Series 2007 A, Ref. RB (INS - AGM)(a) | 4.38% | 06/01/2028 | 25 | 25,031 | ||||||||||
Kentucky (Commonwealth of) Asset Liability Commission (2014 Federal Highway Trust Fund); Series 2014, Ref. RN | 5.00% | 09/01/2026 | 1,515 | 1,525,287 | ||||||||||
Kentucky (Commonwealth of) Economic Development Finance Authority (Catholic Health Initiatives); Series 2011 B, RB (SIFMA Municipal Swap Index + 1.40%)(b)(i) | 4.70% | 02/01/2025 | 2,310 | 2,311,251 | ||||||||||
Kentucky (Commonwealth of) Economic Development Finance Authority (Next Generation Kentucky Information Highway); | ||||||||||||||
Series 2015 A, RB | 5.00% | 07/01/2025 | 1,635 | 1,650,873 | ||||||||||
Series 2015 A, RB | 5.00% | 07/01/2028 | 1,000 | 1,012,214 | ||||||||||
Kentucky (Commonwealth of) Economic Development Finance Authority (Owensboro Health, Inc.); Series 2017 A, Ref. RB | 5.00% | 06/01/2024 | 1,000 | 1,000,211 | ||||||||||
Kentucky (Commonwealth of) Municipal Power Agency; Series 2015 A, Ref. RB (INS - NATL)(a) | 5.00% | 09/01/2026 | 2,000 | 2,037,620 | ||||||||||
Kentucky (Commonwealth of) Public Energy Authority; | ||||||||||||||
Series 2018 A, RB(b)(c) | 4.00% | 03/15/2024 | 2,780 | 2,782,285 | ||||||||||
Series 2019 A-1, RB(b) | 4.00% | 06/01/2025 | 5,000 | 5,007,644 | ||||||||||
Series 2019 A-2, RB (1 mo. USD LIBOR + 1.12%)(b)(i) | 4.77% | 06/01/2025 | 10,000 | 9,998,806 | ||||||||||
Series 2024 A, RB(b) | 5.00% | 07/01/2030 | 3,120 | 3,276,387 | ||||||||||
Louisville (City of) & Jefferson (County of), KY Metropolitan Government (Norton Healthcare, Inc.); Series 2016 A, Ref. RB | 5.00% | 10/01/2032 | 2,660 | 2,756,093 | ||||||||||
33,383,702 | ||||||||||||||
Louisiana–0.36% | ||||||||||||||
Louisiana (State of); Series 2022 A, Ref. RB (SOFR + 0.50%)(b)(i) | 4.22% | 05/01/2026 | 3,150 | 3,091,743 | ||||||||||
New Orleans (City of), LA Aviation Board (Consolidated Rental Car); | ||||||||||||||
Series 2018, Ref. RB (INS - AGM)(a) | 5.00% | 01/01/2036 | 1,250 | 1,343,723 | ||||||||||
Series 2018, Ref. RB (INS - AGM)(a) | 5.00% | 01/01/2037 | 1,440 | 1,541,416 | ||||||||||
5,976,882 | ||||||||||||||
Maine–0.16% | ||||||||||||||
Maine (State of) Turnpike Authority; Series 2014, RB | 5.00% | 07/01/2029 | 1,670 | 1,677,850 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Short Term Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
Maine–(continued) | ||||||||||||||
Portland (City of), ME; Series 2016, Ref. RB | 5.00% | 01/01/2032 | $ | 1,000 | $ 1,025,090 | |||||||||
2,702,940 | ||||||||||||||
Maryland–1.35% | ||||||||||||||
Maryland (State of) Health & Higher Educational Facilities Authority; Series 2017, Ref. RB | 5.00% | 07/01/2031 | 3,000 | 3,128,760 | ||||||||||
Maryland (State of) Health & Higher Educational Facilities Authority (MedStar Health); | ||||||||||||||
Series 2013 B, RB | 5.00% | 08/15/2027 | 200 | 200,466 | ||||||||||
Series 2017 A, RB | 5.00% | 05/15/2042 | 1,875 | 1,916,798 | ||||||||||
Maryland Economic Development Corp. (CNX Marine Terminal, Inc. - Port of Baltimore Facility); Series 2010, Ref. RB | 5.75% | 09/01/2025 | 9,030 | 9,091,788 | ||||||||||
Washington (State of) Suburban Sanitary Commission; Series 2015 B, VRD GO Bonds(j) | 2.90% | 06/01/2024 | 8,200 | 8,200,000 | ||||||||||
22,537,812 | ||||||||||||||
Massachusetts–0.86% | ||||||||||||||
Massachusetts (Commonwealth of); | ||||||||||||||
Series 2016 A, GO Bonds(b)(c) | 5.00% | 04/19/2024 | 1,780 | 1,783,489 | ||||||||||
Series 2018 C, GO Bonds(b)(c) | 5.00% | 04/19/2024 | 1,245 | 1,246,966 | ||||||||||
Series 2018 C, GO Bonds(b)(c) | 5.00% | 04/19/2024 | 150 | 150,237 | ||||||||||
Series 2018 C, GO Bonds(b)(c) | 5.00% | 04/19/2024 | 930 | 931,468 | ||||||||||
Series 2018 C, GO Bonds(b)(c) | 5.00% | 04/19/2024 | 100 | 100,158 | ||||||||||
Massachusetts (Commonwealth of) (Green Bonds); Series 2014 E, GO Bonds | 5.00% | 09/01/2024 | 680 | 680,853 | ||||||||||
Massachusetts (Commonwealth of) Development Finance Agency; Series 2007 C, RB (SIFMA Municipal Swap Index + 0.90%)(i) | 4.20% | 11/15/2032 | 2,405 | 2,328,531 | ||||||||||
Rib Floater Trust; Series 2022-021, VRD RB(e)(j) | 2.96% | 06/01/2058 | 7,100 | 7,100,000 | ||||||||||
Waltham (City of), MA; | ||||||||||||||
Series 2008, GO Bonds | 4.00% | 09/15/2024 | 25 | 25,018 | ||||||||||
Series 2008, GO Bonds | 4.20% | 09/15/2027 | 15 | 15,014 | ||||||||||
Worcester (City of), MA; Series 2006, GO Bonds (INS - SGI)(a) | 4.20% | 11/01/2024 | 10 | 10,008 | ||||||||||
14,371,742 | ||||||||||||||
Michigan–2.43% | ||||||||||||||
Advanced Technology Academy; Series 2019, Ref. RB | 3.50% | 11/01/2024 | 130 | 128,779 | ||||||||||
Detroit (City of), MI; Series 2006, Ref. RB (3 mo. Term SOFR + 0.60%) | 4.35% | 07/01/2032 | 7,825 | 7,503,539 | ||||||||||
Farmington Public School District; Series 2015, Ref. GO Bonds (INS - AGM)(a) | 5.00% | 05/01/2030 | 1,385 | 1,408,321 | ||||||||||
Michigan (State of) Building Authority; Series 2016 I, Ref. RB | 5.00% | 10/15/2032 | 1,250 | 1,313,067 | ||||||||||
Michigan (State of) Finance Authority (Detroit Water & Sewerage Department); | ||||||||||||||
Series 2014 C-3, RB (INS - AGM)(a) | 5.00% | 07/01/2030 | 1,500 | 1,509,252 | ||||||||||
Series 2014 D-4, Ref. RB | 5.00% | 07/01/2029 | 1,400 | 1,406,718 | ||||||||||
Series 2014 D-4, Ref. RB | 5.00% | 07/01/2031 | 2,000 | 2,008,425 | ||||||||||
Series 2014 D-4, Ref. RB | 5.00% | 07/01/2032 | 3,890 | 3,906,134 | ||||||||||
Series 2014, RB (INS - AGM)(a) | 5.00% | 07/01/2029 | 1,500 | 1,509,155 | ||||||||||
Series 2014, Ref. RB | 5.00% | 07/01/2032 | 2,550 | 2,560,576 | ||||||||||
Michigan (State of) Finance Authority (Sparrow Obligated Group); Series 2015, Ref. RB(b)(c) | 5.00% | 05/15/2025 | 1,620 | 1,653,974 | ||||||||||
Michigan (State of) Finance Authority (Trinity Health Credit Group); Series 2015, Ref. RB | 5.50% | 12/01/2028 | 2,245 | 2,302,838 | ||||||||||
Michigan (State of) Hospital Finance Authority (Ascension Health Credit Group); | ||||||||||||||
Series 1999 B-4, RB | 5.00% | 11/15/2031 | 2,325 | 2,367,477 | ||||||||||
Series 1999, RB | 5.00% | 11/15/2027 | 1,105 | 1,125,397 | ||||||||||
Michigan (State of) Housing Development Authority; | ||||||||||||||
Series 2021 A, RB | 0.55% | 04/01/2025 | 1,790 | 1,714,841 | ||||||||||
Series 2024 A, RB | 6.00% | 06/01/2054 | 4,000 | 4,362,705 | ||||||||||
Muskegon Heights (City of), MI; Series 2006, Ref. RB (INS - NATL)(a) | 4.00% | 11/01/2026 | 185 | 184,987 | ||||||||||
Wayne State University; | ||||||||||||||
Series 2015 A, Ref. RB | 5.00% | 11/15/2026 | 175 | 177,143 | ||||||||||
Series 2015 A, Ref. RB | 5.00% | 11/15/2030 | 125 | 126,039 | ||||||||||
Series 2018 A, RB | 5.00% | 11/15/2038 | 2,220 | 2,266,678 | ||||||||||
Western Michigan University; Series 2015 A, Ref. RB | 5.00% | 11/15/2029 | 1,000 | 1,018,423 | ||||||||||
40,554,468 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Short Term Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
Minnesota–0.86% | ||||||||||||||
Minneapolis (City of), MN (Riverton Community Housing); Series 2003, VRD RB (LOC - Bridgewater Bank)(g)(j) | 3.49% | 10/01/2033 | $ | 4,490 | $ 4,490,000 | |||||||||
Minnesota (State of) Governmental Agency Finance Group (Flexible Term Program); Series 2007 A-1, RB (INS - AGC)(a) | 4.13% | 03/01/2027 | 15 | 15,002 | ||||||||||
Minnesota (State of) Higher Education Facilities Authority (University of St. Thomas); Series 2017 A, Ref. RB | 5.00% | 10/01/2029 | 1,400 | 1,495,322 | ||||||||||
Minnesota State Colleges And Universities Foundation; Series 2013 A, RB | 4.00% | 10/01/2025 | 1,000 | 1,000,368 | ||||||||||
Mounds View (City of), MN (Sherman Forbes); Series 2023 A, RB(b) | 4.05% | 11/01/2024 | 1,000 | 999,097 | ||||||||||
North Mankato (City of), MN; Series 2009 C, GO Bonds | 4.00% | 12/01/2024 | 10 | 10,006 | ||||||||||
Northern Municipal Power Agency; | ||||||||||||||
Series 2013 A, RB | 5.00% | 01/01/2030 | 340 | 340,362 | ||||||||||
Series 2013 A, RB | 5.00% | 01/01/2031 | 460 | 460,490 | ||||||||||
St. Paul (City of), MN; | ||||||||||||||
Series 2014 G, RB | 5.00% | 11/01/2031 | 2,400 | 2,421,818 | ||||||||||
Series 2014 G, RB | 5.00% | 11/01/2032 | 1,000 | 1,007,529 | ||||||||||
St. Paul (City of), MN Housing & Redevelopment Authority (Healthpartners Obligated Group); Series 2015 A, Ref. RB | 5.00% | 07/01/2032 | 1,895 | 1,925,500 | ||||||||||
St. Paul (City of), MN Housing & Redevelopment Authority (St. Paul City School); Series 2016 A, Ref. RB(b)(c) | 4.50% | 07/01/2026 | 280 | 284,366 | ||||||||||
14,449,860 | ||||||||||||||
Mississippi–0.00% | ||||||||||||||
Mississippi Business Finance Corp. (Northrop Grumman Corp.); Series 2006, RB | 4.55% | 12/01/2028 | 25 | 25,000 | ||||||||||
Missouri–1.69% | ||||||||||||||
Cassville School District No. R-IV; Series 2023, GO Bonds | 5.25% | 03/01/2039 | 2,220 | 2,368,425 | ||||||||||
Jackson County Consolidated School District No. 4; | ||||||||||||||
Series 2022, GO Bonds | 5.00% | 03/01/2038 | 1,825 | 1,899,475 | ||||||||||
Series 2022, GO Bonds | 5.00% | 03/01/2039 | 3,005 | 3,123,918 | ||||||||||
Kansas City (City of), MO Industrial Development Authority (Ward Parkway Center Community Improvement District); Series 2016 A, Ref. RB(e) | 4.25% | 04/01/2026 | 100 | 98,161 | ||||||||||
Lindbergh School District; Series 2019 A, GO Bonds | 5.00% | 03/01/2033 | 1,475 | 1,576,035 | ||||||||||
Maryland Heights (City of), MO (Westport Plaza Redevelopment); Series 2020, RB | 4.13% | 11/01/2038 | 1,000 | 970,474 | ||||||||||
Missouri (State of) Health & Educational Facilities Authority; Series 2014, RB | 5.00% | 01/01/2030 | 1,000 | 1,001,759 | ||||||||||
Missouri (State of) Health & Educational Facilities Authority (St. Louis University); Series 2015 A, RB | 5.00% | 10/01/2038 | 4,500 | 4,601,003 | ||||||||||
Missouri (State of) Health & Educational Facilities Authority (St. Luke’s Health System, Inc.); Series 2016, Ref. RB | 5.00% | 11/15/2030 | 1,215 | 1,262,403 | ||||||||||
Missouri (State of) Housing Development Commission (First Place Homeownership Loan); Series 2023, RB (CEP - GNMA) | 5.75% | 05/01/2053 | 2,635 | 2,802,226 | ||||||||||
Missouri (State of) Joint Municipal Electric Utility Commission (Plum Point); Series 2014 A, Ref. RB | 5.00% | 01/01/2028 | 2,250 | 2,271,186 | ||||||||||
Missouri (State of) Joint Municipal Electric Utility Commission (Prairie State); Series 2015 A, Ref. RB | 5.00% | 06/01/2027 | 2,600 | 2,646,003 | ||||||||||
Missouri Western State University; Series 2012, Ref. RB | 3.00% | 10/01/2024 | 50 | 49,541 | ||||||||||
Poplar Bluff R-I School District; Series 2014, COP(b)(c) | 5.00% | 03/01/2024 | 1,200 | 1,200,000 | ||||||||||
Springfield Public Building Corp.; Series 2000 A, RB (INS - AMBAC)(a)(f) | 0.00% | 06/01/2025 | 120 | 112,922 | ||||||||||
St. Charles (County of), MO Public Water Supply District No. 2; Series 2016, Ref. COP | 5.00% | 12/01/2030 | 2,255 | 2,316,205 | ||||||||||
28,299,736 | ||||||||||||||
Montana–0.97% | ||||||||||||||
Mizuho Floater/Residual Trust; Series 2020-MIZ9027, VRD Revenue Ctfs. (LOC - Mizuho Capital Markets LLC)(e)(g)(j) | 3.67% | 01/01/2034 | 16,170 | 16,170,000 | ||||||||||
Nebraska–0.72% | ||||||||||||||
Central Plains Energy Project; | ||||||||||||||
Series 2019, Ref. RB | 4.00% | 08/01/2024 | 1,000 | 1,000,893 | ||||||||||
Series 2019, Ref. RB(b) | 4.00% | 08/01/2025 | 3,380 | 3,390,531 | ||||||||||
Gretna Public Schools; Series 2022 B, GO Bonds | 5.00% | 12/15/2027 | 1,000 | 1,032,807 | ||||||||||
Public Power Generation Agency; Series 2016, Ref. RB | 5.00% | 01/01/2032 | 2,980 | 3,088,668 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco Short Term Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
Nebraska–(continued) | ||||||||||||||
Public Power Generation Agency (Whelan Energy Center Unit 2); | ||||||||||||||
Series 2015, Ref. RB | 5.00% | 01/01/2030 | $ | 1,380 | $ 1,396,025 | |||||||||
Series 2015, Ref. RB | 5.00% | 01/01/2031 | 2,115 | 2,139,388 | ||||||||||
12,048,312 | ||||||||||||||
Nevada–1.37% | ||||||||||||||
Clark (County of), NV; Series 2016 B, Ref. GO Bonds | 5.00% | 11/01/2029 | 2,150 | 2,268,583 | ||||||||||
Clark (County of), NV Department of Aviation; | ||||||||||||||
Series 2014 A-2, Ref. RB | 5.00% | 07/01/2029 | 1,200 | 1,204,706 | ||||||||||
Series 2014 A-2, Ref. RB | 5.00% | 07/01/2030 | 6,050 | 6,073,996 | ||||||||||
Clark County School District; Series 2015 D, GO Bonds | 5.00% | 06/15/2029 | 1,755 | 1,809,126 | ||||||||||
Las Vegas Valley Water District; Series 2016 B, Ref. GO Bonds | 5.00% | 06/01/2036 | 2,805 | 2,913,016 | ||||||||||
Truckee Meadows Water Authority; Series 2016, Ref. RB | 5.00% | 07/01/2032 | 2,000 | 2,083,140 | ||||||||||
Washoe (County of), NV (Sierra Pacific Power Corp.); | ||||||||||||||
Series 2016, Ref. RB(b) | 3.63% | 10/01/2029 | 1,500 | 1,517,908 | ||||||||||
Series 2016, Ref. RB(b)(d) | 4.13% | 10/01/2029 | 5,000 | 5,036,347 | ||||||||||
22,906,822 | ||||||||||||||
New Hampshire–0.55% | ||||||||||||||
New Hampshire (State of) Business Finance Authority (Social Bonds); Series 2022-2A, RB | 4.00% | 10/20/2036 | 5,328 | 5,093,946 | ||||||||||
New Hampshire (State of) Health and Education Facilities Authority; Series 2016, Ref. RB | 5.50% | 06/01/2031 | 4,000 | 4,154,431 | ||||||||||
9,248,377 | ||||||||||||||
New Jersey–4.80% | ||||||||||||||
Camden (County of), NJ Improvement Authority (The) (County Capital Program); Series 2024, RB(b) | 5.00% | 03/01/2026 | 4,000 | 4,110,442 | ||||||||||
Camden (County of), NJ Improvement Authority (The) (Rowan University School of Osteopathic Medicine); | ||||||||||||||
Series 2013 A, Ref. RB(b)(c) | 5.00% | 05/28/2024 | 1,610 | 1,616,021 | ||||||||||
Series 2013, Ref. RB(b)(c) | 5.00% | 05/28/2024 | 2,235 | 2,243,359 | ||||||||||
Gloucester (County of), NJ Improvement Authority (The) (Rowan University); Series 2024, RN | 4.00% | 02/27/2025 | 2,500 | 2,512,555 | ||||||||||
New Jersey (State of) Economic Development Authority; | ||||||||||||||
Series 2004 A, RB(c) | 5.25% | 07/01/2025 | 820 | 842,552 | ||||||||||
Series 2005 N-1, Ref. RB (INS - AMBAC)(a) | 5.50% | 09/01/2024 | 7,190 | 7,263,431 | ||||||||||
New Jersey (State of) Economic Development Authority (Rutgers University); Series 2013, RB | 5.00% | 06/15/2025 | 130 | 130,151 | ||||||||||
New Jersey (State of) Educational Facilities Authority (Montclair University); | ||||||||||||||
Series 2014, RB | 5.00% | 06/15/2026 | 1,000 | 1,004,829 | ||||||||||
Series 2016 B, Ref. RB | 5.00% | 07/01/2027 | 1,000 | 1,042,443 | ||||||||||
New Jersey (State of) Health Care Facilities Financing Authority (Hackensack Meridian Health Obligated Group); Series 2017, Ref. RB | 5.00% | 07/01/2032 | 815 | 869,306 | ||||||||||
New Jersey (State of) Health Care Facilities Financing Authority (Inspira Health Obligated Group); Series 2016, Ref. RB | 5.00% | 07/01/2031 | 5,100 | 5,285,308 | ||||||||||
New Jersey (State of) Health Care Facilities Financing Authority (Robert Wood Johnson University Hospital); Series 2013, RB | 5.25% | 07/01/2035 | 1,000 | 1,004,560 | ||||||||||
New Jersey (State of) Health Care Facilities Financing Authority (RWJ Barnabas Health Obligated Group); Series 2016 A, Ref. RB | 5.00% | 07/01/2031 | 8,840 | 9,270,370 | ||||||||||
New Jersey (State of) Housing & Mortgage Finance Agency (Social Bonds); Series 2022 I, RB | 5.00% | 10/01/2053 | 2,905 | 3,006,079 | ||||||||||
New Jersey (State of) Transportation Trust Fund Authority; | ||||||||||||||
Series 2016 A-1, RN | 5.00% | 06/15/2028 | 1,140 | 1,190,775 | ||||||||||
Series 2018 A, Ref. RN | 5.00% | 06/15/2029 | 5,000 | 5,215,868 | ||||||||||
New Jersey (State of) Turnpike Authority; | ||||||||||||||
Series 2014 A, RB | 5.00% | 01/01/2027 | 8,650 | 8,690,338 | ||||||||||
Series 2014 A, RB | 5.00% | 01/01/2033 | 15,350 | 15,414,811 | ||||||||||
Series 2015 E, RB | 5.00% | 01/01/2032 | 2,060 | 2,091,548 | ||||||||||
Series 2015 E, RB | 5.00% | 01/01/2034 | 7,360 | 7,466,049 | ||||||||||
80,270,795 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 | Invesco Short Term Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
New Mexico–1.03% | ||||||||||||||
Albuquerque Municipal School District No. 12; | ||||||||||||||
Series 2017, GO Bonds | 5.00% | 08/01/2029 | $ | 2,575 | $ 2,699,340 | |||||||||
Series 2017, GO Bonds | 5.00% | 08/01/2030 | 1,250 | 1,309,765 | ||||||||||
Series 2017, GO Bonds | 5.00% | 08/01/2031 | 1,700 | 1,779,260 | ||||||||||
Series 2017, GO Bonds | 5.00% | 08/01/2032 | 2,910 | 3,047,749 | ||||||||||
Farmington (City of), NM (Public Service Co. of New Mexico San Juan); Series 2010, Ref. RB(b) | 3.90% | 06/01/2028 | 3,700 | 3,718,257 | ||||||||||
New Mexico (State of) Finance Authority; | ||||||||||||||
Series 2023 A-2, RB | 5.00% | 06/01/2028 | 450 | 461,156 | ||||||||||
Series 2023 A-2, RB | 5.00% | 06/01/2033 | 800 | 818,755 | ||||||||||
New Mexico Mortgage Finance Authority (Mountain View II & III Apartments); Series 2023, RB(b) | 5.00% | 09/01/2025 | 3,000 | 3,040,762 | ||||||||||
Saltillo Public Improvement District; | ||||||||||||||
Series 2018, Ref. RB (INS - BAM)(a) | 4.00% | 10/01/2024 | 105 | 105,423 | ||||||||||
Series 2018, Ref. RB (INS - BAM)(a) | 4.00% | 10/01/2025 | 160 | 162,048 | ||||||||||
17,142,515 | ||||||||||||||
New York–11.09% | ||||||||||||||
Metropolitan Transportation Authority; | ||||||||||||||
Series 2015 D-1, Ref. RB | 5.00% | 11/15/2024 | 115 | 116,417 | ||||||||||
Series 2015 F, Ref. RB | 5.00% | 11/15/2027 | 525 | 540,845 | ||||||||||
Metropolitan Transportation Authority (Green Bonds); | ||||||||||||||
Series 2016 A2, Ref. RB | 4.00% | 11/15/2025 | 145 | 147,319 | ||||||||||
Series 2017 B, Ref. RB | 5.00% | 11/15/2024 | 3,500 | 3,543,175 | ||||||||||
Series 2017 C-1, Ref. RB | 5.00% | 11/15/2026 | 605 | 637,387 | ||||||||||
Series 2018 B, Ref. RB | 5.00% | 11/15/2024 | 175 | 177,156 | ||||||||||
Monroe County Industrial Development Corp. (Andrews Terrace Community); | ||||||||||||||
Series 2023, RB(b) | 5.00% | 07/01/2027 | 4,300 | 4,482,718 | ||||||||||
Series 2024, RB(b) | 5.00% | 07/01/2027 | 5,000 | 5,164,940 | ||||||||||
Monroe County Industrial Development Corp. (Rochester Schools Modernization); Series 2013, RB | 5.00% | 05/01/2024 | 125 | 125,160 | ||||||||||
Nassau County Local Economic Assistance Corp. (Catholic Health Services of Long Island Obligated Group); Series 2014, RB | 5.00% | 07/01/2032 | 1,500 | 1,505,183 | ||||||||||
Nassau County Tobacco Settlement Corp.; Series 2006 A-2, RB | 5.25% | 06/01/2026 | 2,479 | 2,471,894 | ||||||||||
New York & New Jersey (States of) Port Authority; | ||||||||||||||
One Hundred Eighty Four Series 2014, RB | 5.00% | 09/01/2027 | 2,700 | 2,718,991 | ||||||||||
One Hundred Ninety Three Series 2015, Ref. RB(d) | 5.00% | 10/15/2032 | 2,380 | 2,409,933 | ||||||||||
One Hundred Seventy Fifth Series 2012, RB | 5.00% | 12/01/2025 | 480 | 480,705 | ||||||||||
One Hundred Seventy Fifth Series 2012, RB | 4.00% | 12/01/2026 | 470 | 470,444 | ||||||||||
Series 2014, Ref. RB(d) | 5.00% | 10/15/2032 | 2,465 | 2,478,160 | ||||||||||
New York (City of), NY; Subseries 2017 B, VRD GO Bonds(j) | 2.85% | 10/01/2046 | 5,100 | 5,100,000 | ||||||||||
New York (City of), NY Industrial Development Agency (123 Washington LLC); Series 2007, VRD RB (LOC - Bank of China Ltd.)(g)(j) | 3.65% | 10/01/2042 | 7,980 | 7,980,000 | ||||||||||
New York (City of), NY Municipal Water Finance Authority; Series 2022 DD, Ref. VRD RB(j) | 3.25% | 06/15/2033 | 15,000 | 15,000,000 | ||||||||||
New York (City of), NY Transitional Finance Authority; | ||||||||||||||
Series 2014, RB(b)(c) | 5.00% | 04/02/2024 | 5,000 | 5,005,719 | ||||||||||
Series 2014, RB(b)(c) | 5.00% | 04/02/2024 | 4,900 | 4,905,605 | ||||||||||
Subseries 2010 A-4, VRD RB(j) | 2.85% | 08/01/2039 | 5,000 | 5,000,000 | ||||||||||
New York (State of) Dormitory Authority; | ||||||||||||||
Series 2015 A, Ref. RB | 5.00% | 03/15/2031 | 1,860 | 1,892,256 | ||||||||||
Series 2015 A, Ref. RB | 5.00% | 03/15/2033 | 2,500 | 2,542,846 | ||||||||||
Series 2015 B, RB | 5.00% | 03/15/2032 | 4,140 | 4,244,248 | ||||||||||
Series 2016 D, Ref. RB | 5.00% | 02/15/2029 | 3,965 | 4,160,075 | ||||||||||
Series 2017 A, Ref. RB | 5.00% | 07/01/2034 | 1,410 | 1,496,830 | ||||||||||
New York (State of) Housing Finance Agency; | ||||||||||||||
Series 2023 E-2, RB(b) | 3.80% | 05/01/2027 | 4,000 | 4,012,288 | ||||||||||
Series 2023 E-2, RB(b) | 3.88% | 05/01/2028 | 4,380 | 4,396,975 | ||||||||||
New York (State of) Utility Debt Securitization Authority; | ||||||||||||||
Series 2013 TE, RB(b)(c) | 5.00% | 03/14/2024 | 2,615 | 2,616,137 | ||||||||||
Series 2013 TE, RB(b)(c) | 5.00% | 03/14/2024 | 13,595 | 13,600,911 | ||||||||||
New York City Housing Development Corp. (Sustainability Bonds); Series | 0.70% | 05/01/2025 | 5,000 | 4,780,345 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 | Invesco Short Term Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
New York–(continued) | ||||||||||||||
New York City Housing Development Corp. (Sustainable Development Bonds); | ||||||||||||||
Series 2021 F-2, RB (CEP - Federal Housing Administration)(b) | 0.60% | 07/01/2025 | $ | 980 | $ 930,490 | |||||||||
Series 2022 2B, RB (CEP - Federal Housing Administration)(b) | 3.40% | 12/22/2026 | 12,845 | 12,713,682 | ||||||||||
New York State Urban Development Corp.; | ||||||||||||||
Series 2014 A, Ref. RB(b)(c) | 5.00% | 03/15/2024 | 315 | 315,151 | ||||||||||
Series 2014 A, Ref. RB(b)(c) | 5.00% | 03/15/2024 | 160 | 160,077 | ||||||||||
Series 2014, Ref. RB(b)(c) | 5.00% | 03/15/2024 | 2,555 | 2,556,222 | ||||||||||
New York Transportation Development Corp. (American Airlines, Inc. John F. Kennedy International Airport); Series 2020, Ref. RB(d) | 5.25% | 08/01/2031 | 9,075 | 9,573,541 | ||||||||||
New York Transportation Development Corp. (American Airlines, Inc.); | ||||||||||||||
Series 2016, Ref. RB(d) | 5.00% | 08/01/2026 | 8,830 | 8,832,252 | ||||||||||
Series 2016, Ref. RB(d) | 5.00% | 08/01/2031 | 20,070 | 20,070,961 | ||||||||||
Orange County Funding Corp. (Mount St. Mary College); Series 2012 B, RB | 4.00% | 07/01/2024 | 695 | 694,587 | ||||||||||
Rib Floater Trust; Series 2022-003, VRD RB(e)(j) | 3.65% | 11/01/2041 | 10,000 | 10,000,000 | ||||||||||
Suffolk Tobacco Asset Securitization Corp.; Series 2021, Ref. RB | 4.00% | 06/01/2050 | 2,280 | 2,306,795 | ||||||||||
Westchester County Local Development Corp.; Series 2021, Ref. RB(e) | 2.88% | 07/01/2026 | 3,180 | 3,146,329 | ||||||||||
185,504,749 | ||||||||||||||
North Carolina–0.52% | ||||||||||||||
Charlotte-Mecklenburg Hospital Authority (The) (Atrium Health); Series 2018 E, RB(b) | 0.80% | 10/31/2025 | 5,000 | 4,777,194 | ||||||||||
Charlotte-Mecklenburg Hospital Authority (The) (Carolinas Health Care Systems); Series 2013 A, Ref. RB | 5.00% | 01/15/2026 | 230 | 230,060 | ||||||||||
North Carolina (State of) Municipal Power Agency No. 1; Series 2015 A, Ref. RB | 5.00% | 01/01/2031 | 1,610 | 1,661,327 | ||||||||||
North Carolina (State of) Turnpike Authority; Series 2017, Ref. RB | 5.00% | 01/01/2025 | 2,025 | 2,050,993 | ||||||||||
University of North Carolina; Series 2008 A, RB (INS - AGC)(a) | 4.75% | 10/01/2028 | 10 | 10,009 | ||||||||||
8,729,583 | ||||||||||||||
North Dakota–0.49% | ||||||||||||||
North Dakota (State of) Housing Finance Agency; Series 2016, Ref. RB | 3.50% | 07/01/2046 | 8,320 | 8,222,946 | ||||||||||
Ohio–2.12% | ||||||||||||||
Columbus (City of) & Franklin (County of), OH Finance Authority (Easton); Series 2023, RB(b) | 5.00% | 02/01/2027 | 3,000 | 3,099,151 | ||||||||||
Columbus (City of), OH; Series 2018 A, GO Bonds | 5.00% | 04/01/2030 | 5,335 | 5,900,467 | ||||||||||
Columbus City School District (Construction and Improvement); Series 2016 A, Ref. GO Bonds | 5.00% | 12/01/2031 | 6,260 | 6,530,059 | ||||||||||
Cuyahoga (County of), OH (Shaker Square); Series 2010 D, Ref. RB | 5.00% | 12/01/2025 | 565 | 565,821 | ||||||||||
Dayton (City of), OH (James M. Cox); Series 2014 A, Ref. RB (INS - AGM)(a)(d) | 5.00% | 12/01/2026 | 1,335 | 1,335,369 | ||||||||||
Greater Cincinnati (Port of), OH Development Authority (IPS Cincinnati LLC); Series 2021, RB(b) | 4.38% | 06/15/2026 | 1,500 | 1,459,809 | ||||||||||
Hamilton (County of), OH (UC Health); | ||||||||||||||
Series 2014, RB | 5.00% | 02/01/2027 | 465 | 465,282 | ||||||||||
Series 2014, RB | 5.00% | 02/01/2028 | 465 | 465,314 | ||||||||||
Series 2014, RB | 5.00% | 02/01/2029 | 425 | 425,304 | ||||||||||
Martins Ferry (City of), OH; Series 2023, GO Notes | 5.00% | 12/18/2024 | 1,750 | 1,764,179 | ||||||||||
Ohio (State of); | ||||||||||||||
Series 2015 A, RB | 5.00% | 04/01/2028 | 1,375 | 1,401,419 | ||||||||||
Series 2017 A, GO Bonds(b)(c) | 5.00% | 03/01/2024 | 3,335 | 3,335,000 | ||||||||||
Series 2017 A, GO Bonds(b)(c) | 5.00% | 03/15/2024 | 1,155 | 1,155,549 | ||||||||||
Series 2017 A, GO Bonds | 5.00% | 05/01/2028 | 2,330 | 2,385,083 | ||||||||||
Ohio (State of) Higher Educational Facility Commission (University of Dayton); Series 2018, Ref. RB | 5.00% | 12/01/2035 | 2,000 | 2,142,366 | ||||||||||
RiverSouth Authority; Series 2007 A, RB | 5.75% | 12/01/2027 | 490 | 490,057 | ||||||||||
Stark (County of), OH; Series 2004, GO Bonds (INS - NATL)(a) | 4.38% | 12/01/2024 | 5 | 5,004 | ||||||||||
Westerville City School District; Series 2018, COP | 5.00% | 12/01/2039 | 2,450 | 2,563,507 | ||||||||||
35,488,740 | ||||||||||||||
Oklahoma–0.83% | ||||||||||||||
Grand River Dam Authority; Series 2023, RB | 5.00% | 06/01/2037 | 1,800 | 2,075,327 | ||||||||||
Oklahoma (State of) Capitol Improvement Authority; | ||||||||||||||
Series 2014 A, Ref. RB | 5.00% | 07/01/2028 | 1,000 | 1,003,108 | ||||||||||
Series 2014 A, Ref. RB | 5.00% | 07/01/2029 | 4,180 | 4,192,718 | ||||||||||
Series 2014 A, Ref. RB | 5.00% | 07/01/2030 | 1,500 | 1,504,564 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 | Invesco Short Term Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||
Oklahoma–(continued) | ||||||||||||||
Oklahoma (State of) Capitol Improvement Authority (Capitol Repair); Series 2018 C, RB | 5.00% | 01/01/2038 | $ | 2,320 | $ 2,450,532 | |||||||||
Oklahoma (State of) Development Finance Authority (Sommerset); Series 2015, RB | 5.00% | 07/01/2025 | 815 | 811,439 | ||||||||||
University of Oklahoma (The); | ||||||||||||||
Series 2014 C, Ref. RB | 5.00% | 07/01/2024 | 1,000 | 1,001,031 | ||||||||||
Series 2014 C, Ref. RB | 5.00% | 07/01/2027 | 500 | 500,253 | ||||||||||
Series 2014 C, Ref. RB | 5.00% | 07/01/2029 | 250 | 250,144 | ||||||||||
13,789,116 | ||||||||||||||
Oregon–0.49% | ||||||||||||||
Multnomah (County of), OR Hospital Facilities Authority (Green Bonds); | ||||||||||||||
Series 2021 B, Ref. RB | 1.20% | 06/01/2028 | 1,150 | 1,011,451 | ||||||||||
Series 2021 B2, Ref. RB | 0.95% | 06/01/2027 | 745 | 673,585 | ||||||||||
Oregon (State of); Series 2020 J, Ref. VRD GO Bonds(j) | 2.75% | 06/01/2039 | 600 | 600,000 | ||||||||||
Oregon (State of) (Article XI-Q State); Series 2016, Ref. GO Bonds | 5.00% | 05/01/2032 | 2,885 | 3,003,596 | ||||||||||
Oregon (State of) Lottery; Series 2015 D, Ref. RB | 5.00% | 04/01/2028 | 1,525 | 1,554,006 | ||||||||||
Oregon Health & Science University; Series 2016 B, Ref. RB | 5.00% | 07/01/2039 | 1,390 | 1,428,551 | ||||||||||
8,271,189 | ||||||||||||||
Pennsylvania–5.06% | ||||||||||||||
Allegheny (County of), PA Higher Education Building Authority (Robert Morris University); Series 2017, RB | 5.00% | 10/15/2026 | 325 | 325,238 | ||||||||||
Allegheny (County of), PA Hospital Development Authority (Allegheny Health Network Obligated Group Issue); Series 2018, Ref. RB | 5.00% | 04/01/2033 | 3,800 | 4,020,766 | ||||||||||
Allegheny (County of), PA Sanitary Authority; Series 2013, RB (INS - BAM)(a) | 5.00% | 12/01/2028 | 145 | 145,137 | ||||||||||
Chester (County of), PA Health & Education Facilities Authority (Main Line Health System); Series 2017 A, Ref. RB | 5.00% | 10/01/2035 | 2,025 | 2,139,618 | ||||||||||
Coatesville Area School District Building Authority; Series 2018, RB (INS - BAM)(a) | 5.00% | 12/01/2024 | 425 | 425,465 | ||||||||||
Dallastown Area School District; Series 2017, Ref. GO Bonds | 5.00% | 04/15/2026 | 1,000 | 1,017,553 | ||||||||||
Downingtown Area School District; Series 2018 C, GO Bonds | 5.00% | 08/01/2031 | 1,475 | 1,540,770 | ||||||||||
Geisinger Authority (Geisinger Health System); Series 2014 B, Ref. RB (1 mo. USD LIBOR + 1.07%)(b)(i) | 4.71% | 06/01/2024 | 13,600 | 13,606,659 | ||||||||||
Montgomery (County of), PA Higher Education & Health Authority (Holy Redeemer Health System); Series 2014 A, Ref. RB | 5.00% | 10/01/2024 | 1,165 | 1,161,159 | ||||||||||
Montgomery (County of), PA Industrial Development Authority; Series 2023, RB(b) | 4.10% | 04/03/2028 | 3,000 | 3,078,164 | ||||||||||
Pennsylvania (Commonwealth of); | ||||||||||||||
First series 2013, GO Bonds(b)(c) | 4.00% | 03/19/2024 | 2,150 | 2,150,514 | ||||||||||
First Series 2020, GO Bonds | 5.00% | 05/01/2024 | 5,000 | 5,013,103 | ||||||||||
Second series 2013, GO Bonds(b)(c) | 5.00% | 03/19/2024 | 1,000 | 1,000,606 | ||||||||||
Second series 2013, GO Bonds(b)(c) | 5.00% | 03/19/2024 | 2,000 | 2,001,212 | ||||||||||
Second Series 2013, GO Bonds(b)(c) | 5.00% | 03/19/2024 | 100 | 100,061 | ||||||||||
Second Series 2013, GO Bonds(b)(c) | 5.00% | 03/19/2024 | 11,450 | 11,456,940 | ||||||||||
Pennsylvania (Commonwealth of) Higher Educational Facilities Authority (Thomas Jefferson University); Series 2015 B, VRD RB(j) | 4.05% | 09/01/2045 | 15,095 | 15,095,000 | ||||||||||
Pennsylvania (Commonwealth of) Turnpike Commission; | ||||||||||||||
Series 2014 B, RB | 5.00% | 12/01/2031 | 1,000 | 1,013,654 | ||||||||||
Series 2016 A, Ref. RB | 5.00% | 12/01/2030 | 9,990 | 10,517,672 | ||||||||||
Series 2016 B, Ref. RB (INS - AGM)(a) | 5.00% | 06/01/2029 | 800 | 835,720 | ||||||||||
Philadelphia (City of), PA; | ||||||||||||||
Series 2016, Ref. RB | 5.00% | 10/01/2031 | 3,270 | 3,403,716 | ||||||||||
Series 2016, Ref. RB | 5.00% | 10/01/2032 | 1,400 | 1,455,843 | ||||||||||
Series 2019 A, Ref. GO Bonds | 5.00% | 08/01/2024 | 2,000 | 2,013,379 | ||||||||||
Sayre (City of), PA Health Care Facilities Authority (Guthrie Health); Series 2007, RB (3 mo. USD LIBOR + 0.78%)(i) | 4.53% | 12/01/2024 | 15 | 15,001 | ||||||||||
Washington (County of), PA Redevelopment Authority (Victory Centre); Series 2018, Ref. RB | 5.00% | 07/01/2028 | 1,025 | 1,028,739 | ||||||||||
84,561,689 | ||||||||||||||
Puerto Rico–0.40% | ||||||||||||||
Puerto Rico (Commonwealth of); Series 2021 A-1, GO Bonds | 5.38% | 07/01/2025 | 121 | 122,730 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 | Invesco Short Term Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||
Puerto Rico–(continued) | ||||||||||||
Puerto Rico (Commonwealth of) Electric Power Authority; | ||||||||||||
Series 2005 RR, RB (INS - AGC)(a) | 5.00% | 07/01/2026 | $ | 100 | $ 99,994 | |||||||
Series 2005 RR, RB (INS - SGI)(a) | 5.00% | 07/01/2026 | 3,905 | 3,886,346 | ||||||||
Series 2005 RR, RB (INS - SGI)(a) | 5.00% | 07/01/2027 | 1,505 | 1,497,404 | ||||||||
Series 2007 UU, Ref. RB (INS - AGM)(a) | 5.00% | 07/01/2024 | 500 | 500,048 | ||||||||
Series 2008 WW, RB (INS - AGC)(a) | 5.25% | 07/01/2033 | 500 | 500,044 | ||||||||
6,606,566 | ||||||||||||
Rhode Island–0.52% | ||||||||||||
Rhode Island Health and Educational Building Corp.; Series 2017 G, RB | 5.00% | 05/15/2039 | 2,520 | 2,631,499 | ||||||||
Tobacco Settlement Financing Corp.; Series 2015 B, Ref. RB | 4.50% | 06/01/2045 | 5,980 | 5,990,367 | ||||||||
8,621,866 | ||||||||||||
South Carolina–1.44% | ||||||||||||
Florence & Darlington (Counties of), SC Commission for Technical Education; Series 2014, Ref. RB | 5.00% | 03/01/2028 | 620 | 620,891 | ||||||||
Piedmont Municipal Power Agency; Series 2021 C, Ref. RB | 5.00% | 01/01/2032 | 4,000 | 4,160,421 | ||||||||
Richland County School District No. 1; Series 2014 C, Ref. GO Bonds | 5.00% | 03/01/2025 | 1,000 | 1,008,650 | ||||||||
SCAGO Educational Facilities Corp. for Pickens School District; Series 2015, Ref. RB | 5.00% | 12/01/2030 | 1,190 | 1,212,388 | ||||||||
South Carolina (State of) Jobs-Economic Development Authority (Prisma Health Obligated Group); Series 2018 C, VRD RB(j) | 3.98% | 05/01/2048 | 10,000 | 10,000,000 | ||||||||
South Carolina (State of) Public Service Authority; | ||||||||||||
Series 2016 A, Ref. RB | 5.00% | 12/01/2029 | 1,885 | 1,950,060 | ||||||||
Series 2016 A, Ref. RB (INS - AGM)(a) | 5.00% | 12/01/2032 | 5,000 | 5,187,149 | ||||||||
24,139,559 | ||||||||||||
South Dakota–0.34% | ||||||||||||
South Dakota (State of) Housing Development Authority; Series 2009 A, VRD RB(j) | 3.55% | 11/01/2048 | 5,710 | 5,710,000 | ||||||||
Tennessee–1.80% | ||||||||||||
Metropolitan Nashville Airport Authority (The); Series 2015 B, RB(d) | 5.00% | 07/01/2033 | 1,550 | 1,573,563 | ||||||||
Nashville (City of) & Davidson (County of), TN Metropolitan Government; | ||||||||||||
Series 2013 A, Ref. RB(b)(c) | 5.00% | 05/15/2024 | 130 | 130,410 | ||||||||
Series 2013 A, Ref. RB(b)(c) | 5.00% | 05/15/2024 | 780 | 782,459 | ||||||||
Series 2013, Ref. GO Bonds | 5.00% | 07/01/2024 | 120 | 120,089 | ||||||||
Tennessee Energy Acquisition Corp.; | ||||||||||||
Series 2006 C, RB | 5.00% | 02/01/2027 | 1,835 | 1,861,547 | ||||||||
Series 2018, RB(b) | 4.00% | 11/01/2025 | 14,060 | 14,104,497 | ||||||||
Tennessee Energy Acquisition Corp. (GAS); Series 2023 A-1, Ref. RB(b) | 5.00% | 05/01/2028 | 7,415 | 7,671,553 | ||||||||
Tennessee Housing Development Agency (Social Bonds); Series 2022, RB | 5.50% | 01/01/2053 | 3,730 | 3,910,723 | ||||||||
30,154,841 | ||||||||||||
Texas–10.27% | ||||||||||||
Alamo Community College District; Series 2007, GO Bonds (INS - NATL)(a) | 4.50% | 08/15/2033 | 590 | 590,340 | ||||||||
Arlington Higher Education Finance Corp. (Basis Texas Charter Schools, Inc.); Series 2021, RB(b)(e) | 4.50% | 06/15/2026 | 1,100 | 1,099,855 | ||||||||
Boerne Independent School District; Series 2022, GO Bonds (CEP - Texas Permanent School Fund)(b) | 3.85% | 12/01/2027 | 2,570 | 2,617,809 | ||||||||
Calhoun (County of), TX Navigation Industrial Development Authority (Max Midstream Texas LLC); Series 2021, RN(d)(e) | 3.63% | 07/01/2026 | 4,000 | 3,747,076 | ||||||||
Conroe Independent School District; Series 2016 A, Ref. GO Bonds (CEP - Texas Permanent School Fund) | 5.00% | 02/15/2028 | 7,810 | 8,116,745 | ||||||||
Dallas (City of) TX; Series 2017, RB | 5.00% | 10/01/2031 | 1,745 | 1,876,650 | ||||||||
Dallas (City of), TX; | ||||||||||||
Series 2014, Ref. GO Bonds (INS - BAM)(a) | 5.00% | 02/15/2029 | 1,065 | 1,066,028 | ||||||||
Series 2015, GO Bonds | 5.00% | 02/15/2030 | 1,055 | 1,071,375 | ||||||||
Dallas (City of), TX (Dallas, Denton, Collin and Rockwall Counties); Series 2016 A, Ref. RB | 5.00% | 10/01/2041 | 1,000 | 1,022,809 | ||||||||
Dallas (County of), TX; Series 2016, Ctfs. of Obligation | 5.00% | 08/15/2029 | 4,605 | 4,810,985 | ||||||||
Dallas College; Series 2022, GO Bonds | 5.00% | 02/15/2035 | 1,000 | 1,026,389 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 | Invesco Short Term Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||
Texas–(continued) | ||||||||||||
Denton (City of), TX; | ||||||||||||
Series 2017, RB | 5.00% | 12/01/2030 | $ | 1,320 | $ 1,383,682 | |||||||
Series 2017, RB | 5.00% | 12/01/2035 | 3,240 | 3,364,015 | ||||||||
DeSoto Independent School District; Series 2015 B, Ref. GO Bonds (INS - BAM)(a) | 5.00% | 08/15/2032 | 2,000 | 2,049,767 | ||||||||
El Paso (County of), TX Hospital District; Series 2013, Ctfs. of Obligation | 5.00% | 08/15/2025 | 675 | 675,572 | ||||||||
Fort Bend Independent School District (2023 Remarketing); Series 2022 B, GO Bonds (CEP - Texas Permanent School Fund)(b) | 3.65% | 08/01/2024 | 5,000 | 4,998,459 | ||||||||
Frisco Independent School District; Series 2016 B, GO Bonds (CEP - Texas Permanent School Fund) | 5.00% | 08/15/2034 | 2,020 | 2,113,759 | ||||||||
Godley Independent School District; Series 2015, Ref. GO Bonds (CEP - Texas Permanent School Fund) | 5.00% | 02/15/2029 | 1,090 | 1,105,773 | ||||||||
Goose Creek Consolidated Independent School District; Series 2016 A, Ref. GO Bonds (CEP - Texas Permanent School Fund) | 5.00% | 02/15/2029 | 5,000 | 5,194,452 | ||||||||
Grand Prairie Independent School District; Series 2011, Ref. GO Bonds (CEP - Texas Permanent School Fund) | 4.00% | 02/15/2026 | 675 | 675,233 | ||||||||
Guadalupe (County of) & Seguin (City of), TX Hospital Board of Managers; Series 2015, Ref. RB | 5.00% | 12/01/2024 | 1,865 | 1,859,879 | ||||||||
Harris & Montgomery (Counties of), TX Municipal Utility District No. 386; Series 2014, GO Bonds (INS - AGM)(a) | 4.00% | 09/01/2030 | 620 | 620,425 | ||||||||
Harris (County of), TX; | ||||||||||||
Series 2014 A, Ref. GO Bonds | 5.00% | 10/01/2031 | 2,035 | 2,051,557 | ||||||||
Series 2016 A, Ref. RB | 5.00% | 08/15/2032 | 1,430 | 1,492,430 | ||||||||
Harris County Cultural Education Facilities Finance Corp. (Memorial Hermann Health System); Series 2016, RB | 5.00% | 07/01/2038 | 1,605 | 1,655,418 | ||||||||
Harris County Industrial Development Corp. (Energy Transfer L.P.); Series 2023, Ref. RB(b) | 4.05% | 06/01/2033 | 2,775 | 2,815,398 | ||||||||
Lamar Consolidated Independent School District; Series 2018, GO Bonds (CEP - Texas Permanent School Fund) | 5.00% | 02/15/2043 | 1,000 | 1,037,835 | ||||||||
Leander (City of), TX; Series 2015, Ctfs. of Obigations | 5.00% | 08/15/2030 | 1,020 | 1,027,953 | ||||||||
Leander Independent School District; Series 2015 A, Ref. GO Bonds (CEP - Texas Permanent School Fund) | 5.00% | 08/15/2040 | 3,000 | 3,032,641 | ||||||||
Lewisville Independent School District; Series 2016 B, Ref. GO Bonds | 5.00% | 08/15/2028 | 1,000 | 1,023,035 | ||||||||
McKinney Independent School District; Series 2015 A, Ref. GO Bonds (CEP - Texas Permanent School Fund) | 5.00% | 02/15/2031 | 3,475 | 3,529,514 | ||||||||
Mission Economic Development Corp. (Natgasoline); Series 2018, Ref. RB(d)(e) | 4.63% | 10/01/2031 | 1,000 | 998,385 | ||||||||
Montgomery Independent School District; Series 2015, Ref. GO Bonds (CEP - Texas Permanent School Fund) | 5.00% | 02/15/2028 | 2,140 | 2,175,176 | ||||||||
Mueller Local Government Corp.; Series 2009, RB | 4.25% | 09/01/2029 | 30 | 30,029 | ||||||||
New Hope Cultural Education Facilities Finance Corp. (CHF - Collegiate Housing San Antonio I, LLC - Texas A&M University); Series 2016 A, RB(c) | 5.00% | 04/01/2024 | 405 | 405,428 | ||||||||
North East Independent School District; Series 2015, Ref. GO Bonds (CEP - Texas Permanent School Fund) | 5.00% | 08/01/2031 | 2,355 | 2,416,988 | ||||||||
North Harris (County of), TX Regional Water Authority; Series 2013, Ref. RB | 5.00% | 12/15/2030 | 205 | 205,220 | ||||||||
North Texas Tollway Authority; | ||||||||||||
Series 2015 A, Ref. RB | 5.00% | 01/01/2032 | 8,000 | 8,103,534 | ||||||||
Series 2016 A, Ref. RB | 5.00% | 01/01/2025 | 1,310 | 1,311,624 | ||||||||
Series 2017 A, RB | 5.00% | 01/01/2025 | 55 | 55,066 | ||||||||
Series 2017 B, Ref. RB | 5.00% | 01/01/2025 | 15 | 15,018 | ||||||||
Pearland (City of), TX; Series 2014, Ref. GO Bonds | 5.00% | 03/01/2025 | 200 | 200,225 | ||||||||
Pecos Barstow Toyah Independent School District; | ||||||||||||
Series 2023, GO Bonds (CEP - Texas Permanent School Fund) | 5.00% | 02/15/2038 | 1,350 | 1,380,108 | ||||||||
Series 2023, GO Bonds (CEP - Texas Permanent School Fund) | 5.00% | 02/15/2040 | 1,885 | 1,922,777 | ||||||||
Permanent University Fund - University of Texas System; Series 2015 B, RB | 5.00% | 07/01/2028 | 4,765 | 4,886,984 | ||||||||
Plano (City of), TX; Series 2023, Ref. GO Bonds | 5.00% | 09/01/2036 | 3,370 | 3,900,032 | ||||||||
Port Arthur (Port of), TX Navigation District; | ||||||||||||
Subseries 2010 D, VRD RB(j) | 3.55% | 11/01/2040 | 10,000 | 10,000,000 | ||||||||
Subseries 2010, VRD RB(j) | 3.52% | 11/01/2040 | 8,175 | 8,175,000 | ||||||||
Rankin Independent School District; Series 2023, GO Bonds (CEP - Texas Permanent School Fund) | 5.00% | 02/15/2032 | 2,125 | 2,127,148 | ||||||||
Rib Floater Trust; Series 2022-006, VRD RB (LOC - Barclays Bank PLC)(e)(g)(j) | 3.60% | 11/15/2046 | 10,000 | 10,000,000 | ||||||||
Robstown (City of), TX; Series 2009, Ctfs. of Obligation (INS - AGM)(a)(f) | 0.00% | 03/01/2024 | 490 | 490,000 | ||||||||
Rowlett (City of), TX (Bayside Public Improvement District North Improvement Area); Series 2016, RB | 4.90% | 09/15/2024 | 30 | 29,924 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
17 | Invesco Short Term Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||
Texas–(continued) | ||||||||||||
San Antonio (City of), TX; | ||||||||||||
Series 2015, RB(d) | 5.00% | 07/01/2030 | $ | 1,235 | $ 1,254,195 | |||||||
Series 2015, RB(d) | 5.00% | 07/01/2031 | 1,300 | 1,320,074 | ||||||||
Series 2016, Ref. RB | 5.00% | 02/01/2031 | 2,145 | 2,244,179 | ||||||||
Series 2019 C, RB(b) | 1.75% | 12/01/2024 | 10,000 | 9,821,789 | ||||||||
San Antonio Independent School District; Series 2016, Ref. GO Bonds (CEP - Texas Permanent School Fund) | 5.00% | 08/15/2031 | 1,615 | 1,690,740 | ||||||||
Texas (State of); Series 2014 A, Ref. GO Bonds | 5.00% | 10/01/2025 | 1,000 | 1,011,070 | ||||||||
Texas (State of) Transportation Commission (Central Texas Turnpike System); Series 2015 C, Ref. RB | 5.00% | 08/15/2031 | 3,000 | 3,016,880 | ||||||||
Texas Municipal Gas Acquisition & Supply Corp. I; Series 2008 D, RB | 6.25% | 12/15/2026 | 10,155 | 10,546,000 | ||||||||
Texas Municipal Gas Acquisition & Supply Corp. II; Series 2007, RB (SIFMA Municipal Swap Index + 0.55%)(i) | 3.85% | 09/15/2027 | 10,920 | 10,683,471 | ||||||||
Trinity River Authority; Series 2014, Ref. RB | 5.00% | 08/01/2024 | 500 | 500,620 | ||||||||
West Travis County Public Utility Agency; Series 2017, Ref. RB (INS - BAM)(a) | 5.00% | 08/15/2030 | 45 | 48,289 | ||||||||
Wink-Loving Independent School District; Series 2023, GO Bonds (CEP - Texas Permanent School Fund) | 5.00% | 02/15/2030 | 2,000 | 2,002,328 | ||||||||
171,721,159 | ||||||||||||
Utah–0.12% | ||||||||||||
Grand (County of), UT School District Local Building Authority; Series 2019, RB (INS - AGM)(a) | 5.00% | 12/15/2038 | 2,040 | 2,084,422 | ||||||||
Virginia–0.71% | ||||||||||||
Virginia (Commonwealth of) Housing Development Authority; Series 2023 E-2, RB(b) | 3.90% | 07/01/2025 | 10,000 | 10,007,654 | ||||||||
Virginia Beach Development Authority (Westminster-Canterbury on Chesapeake Bay); Series 2023 B-3, RB | 5.38% | 09/01/2029 | 1,850 | 1,910,195 | ||||||||
11,917,849 | ||||||||||||
Washington–4.16% | ||||||||||||
Central Puget Sound Regional Transit Authority; Series 1999, RB (INS - NATL)(a) | 4.75% | 02/01/2028 | 1,230 | 1,244,584 | ||||||||
Chelan County School District No. 246 Wenatchee; Series 2014, GO Bonds (CEP - Oregon School Bond Guaranty) | 5.00% | 12/01/2030 | 1,480 | 1,485,776 | ||||||||
Energy Northwest; Series 2014, Ref. RB | 5.00% | 07/01/2030 | 1,000 | 1,004,180 | ||||||||
Energy Northwest (Columbia Generating Station); Series 2014, Ref. RB | 5.00% | 07/01/2031 | 2,000 | 2,008,295 | ||||||||
Energy Northwest (No. 1); Series 2014 C, Ref. RB | 5.00% | 07/01/2027 | 3,000 | 3,013,223 | ||||||||
Kelso (City of), WA Housing Authority (Chinook & Columbia Apartments); Series 1998, RB | 5.60% | 03/01/2028 | 10 | 10,000 | ||||||||
Lewis (County of), WA Public Utility District No. 1; Series 2013, Ref. RB | 5.25% | 04/01/2032 | 5,000 | 5,016,851 | ||||||||
Seattle (City of), WA; Series 2023 B, Ref. VRD RB (LOC - Td Bank N.A.)(g)(j) | 3.09% | 11/01/2046 | 6,300 | 6,300,000 | ||||||||
Seattle (Port of), WA; | ||||||||||||
Series 2015 A, RB | 5.00% | 04/01/2030 | 2,840 | 2,859,715 | ||||||||
Series 2015 B, Ref. RB | 5.00% | 03/01/2029 | 1,115 | 1,121,758 | ||||||||
Series 2015 B, Ref. RB | 5.00% | 03/01/2030 | 2,000 | 2,011,928 | ||||||||
Series 2017 C, RB(d) | 5.00% | 05/01/2025 | 275 | 279,296 | ||||||||
Series 2017, GO Bonds | 5.00% | 01/01/2042 | 3,375 | 3,505,629 | ||||||||
Tacoma (City of), WA Regional Water Supply System; Series 2013, Ref. RB(b)(c) | 5.00% | 05/13/2024 | 250 | 250,766 | ||||||||
Washington (State of); | ||||||||||||
Series 2014 B, Ref. GO Bonds | 5.00% | 07/01/2026 | 11,980 | 12,045,296 | ||||||||
Series 2015 A-1, GO Bonds | 5.00% | 08/01/2029 | 10,000 | 10,275,772 | ||||||||
Series 2016 B, GO Bonds | 5.00% | 08/01/2031 | 1,205 | 1,262,162 | ||||||||
Series 2016 B, Ref. GO Bonds | 5.00% | 07/01/2032 | 1,140 | 1,181,048 | ||||||||
Washington (State of) Economic Development Finance Authority; Series 2014, Ref. RB | 5.00% | 06/01/2032 | 2,920 | 2,943,445 | ||||||||
Washington (State of) Health Care Facilities Authority (Providence Health & Services); | ||||||||||||
Series 2012 A, RB | 5.00% | 10/01/2025 | 125 | 125,058 | ||||||||
Series 2012 A, RB | 5.00% | 10/01/2026 | 2,540 | 2,548,490 | ||||||||
Series 2012 A, RB | 5.00% | 10/01/2027 | 2,415 | 2,423,072 | ||||||||
Series 2012 A, RB | 5.00% | 10/01/2028 | 165 | 165,399 | ||||||||
Series 2012 A, RB | 4.25% | 10/01/2040 | 2,800 | 2,693,789 | ||||||||
Washington (State of) Tobacco Settlement Authority; Series 2018, Ref. RB | 5.00% | 06/01/2024 | 3,750 | 3,752,732 | ||||||||
69,528,264 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
18 | Invesco Short Term Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||
West Virginia–0.96% | ||||||||||||
West Virginia (State of) Hospital Finance Authority (West Virginia University Health System Obligated Group); | ||||||||||||
Series 2017, RB | 5.00% | 06/01/2035 | $ | 1,100 | $ 1,157,060 | |||||||
Series 2018 E, Ref. VRD RB(j) | 3.91% | 06/01/2033 | 13,180 | 13,180,000 | ||||||||
West Virginia (State of) Water Development Authority; Series 2016, Ref. RB | 5.00% | 10/01/2031 | 1,635 | 1,711,330 | ||||||||
16,048,390 | ||||||||||||
Wisconsin–3.10% | ||||||||||||
Central Brown County Water Authority; | ||||||||||||
Series 2014 A, Ref. RB | 5.00% | 11/01/2026 | 1,000 | 1,007,529 | ||||||||
Series 2014 A, Ref. RB | 5.00% | 11/01/2028 | 2,985 | 3,009,998 | ||||||||
Series 2014 A, Ref. RB | 5.00% | 11/01/2029 | 2,160 | 2,176,123 | ||||||||
Series 2014 A, Ref. RB | 5.00% | 11/01/2030 | 2,500 | 2,520,448 | ||||||||
Wisconsin (State of) Health & Educational Facilities Authority (Advocate Aurora Health Credit Group); Series 2018, Ref. RB(b) | 5.00% | 01/29/2025 | 10,000 | 10,119,889 | ||||||||
Wisconsin (State of) Health & Educational Facilities Authority (Ascension Health Credit Group); Series 2016 A, Ref. RB | 5.00% | 11/15/2039 | 1,350 | 1,382,872 | ||||||||
Wisconsin (State of) Health & Educational Facilities Authority (Aspirus, Inc. Obligated Group); | ||||||||||||
Series 2013, RB | 5.00% | 08/15/2026 | 100 | 100,214 | ||||||||
Series 2013, RB | 5.00% | 08/15/2027 | 800 | 801,704 | ||||||||
Wisconsin (State of) Health & Educational Facilities Authority (Forensic Science and Protective Medicine Facility); Series 2024, RB(e) | 5.00% | 08/01/2027 | 5,000 | 5,123,562 | ||||||||
Wisconsin (State of) Health & Educational Facilities Authority (Hospital Sisters Services, Inc.); Series 2014, Ref. RB | 5.00% | 11/15/2029 | 1,800 | 1,816,009 | ||||||||
Wisconsin (State of) Health & Educational Facilities Authority (Mercy Alliance); Series 2012, RB | 5.00% | 06/01/2027 | 3,225 | 3,227,633 | ||||||||
Wisconsin (State of) Health & Educational Facilities Authority (Prohealth Care Obligated Group); | ||||||||||||
Series 2015, Ref. RB | 5.00% | 08/15/2030 | 170 | 170,869 | ||||||||
Series 2015, Ref. RB | 5.00% | 08/15/2031 | 1,815 | 1,824,135 | ||||||||
Wisconsin (State of) Health & Educational Facilities Authority (Thedacare, Inc.); Series 2015, Ref. RB | 5.00% | 12/15/2029 | 125 | 126,542 | ||||||||
Wisconsin (State of) Health & Educational Facilities Authority (Unitypoint Health); | ||||||||||||
Series 2014 A, RB | 5.00% | 12/01/2028 | 980 | 986,511 | ||||||||
Series 2014 A, RB | 5.00% | 12/01/2029 | 1,475 | 1,484,043 | ||||||||
Wisconsin (State of) Housing & Economic Development Authority; Series 2023 E, RB(b) | 3.88% | 05/01/2027 | 4,400 | 4,404,979 | ||||||||
Wisconsin (State of) Public Finance Authority; | ||||||||||||
Series 2016, RB | 5.00% | 03/01/2032 | 4,315 | 4,449,219 | ||||||||
Series 2022, Ref. RB(b) | 3.30% | 10/01/2026 | 1,745 | 1,735,849 | ||||||||
Wisconsin (State of) Public Finance Authority (Prime Healthcare Foundation, Inc.); Series 2018 A, RB | 5.00% | 12/01/2027 | 860 | 875,554 | ||||||||
Wisconsin (State of) Public Finance Authority (Renown Regional Medical Center); Series 2015 A, Ref. RB | 5.00% | 06/01/2031 | 3,295 | 3,339,248 | ||||||||
WPPI Energy; | ||||||||||||
Series 2014 A, Ref. RB | 5.00% | 07/01/2030 | 1,000 | 1,003,627 | ||||||||
Series 2014 A, Ref. RB | 5.00% | 07/01/2032 | 100 | 100,327 | ||||||||
51,786,884 | ||||||||||||
Total Municipal Obligations (Cost $1,633,111,033) | 1,639,633,843 | |||||||||||
Shares | ||||||||||||
MuniFund Preferred Shares–1.71% | ||||||||||||
Nuveen AMT-Free Municipal Credit Income Fund; Series B(e)(j) | 5,750,000 | 5,750,000 | ||||||||||
Nuveen AMT-Free Quality Municipal Income Fund; MFP, Series D(e) | 22,870,000 | 22,870,000 | ||||||||||
Total MuniFund Preferred Shares (Cost $28,620,000) | 28,620,000 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
19 | Invesco Short Term Municipal Fund |
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||
U.S. Dollar Denominated Bonds & Notes–0.03% | ||||||||||||
California–0.03% | ||||||||||||
CalPlant I LLC; | ||||||||||||
Exit Facility(e)(k) | 15.00% | 07/01/2025 | $ | 75 | $ 75,000 | |||||||
Series 21A(e)(k)(l) | 9.50% | 12/31/2049 | 25 | 25,000 | ||||||||
Series 21B(e)(k)(l) | 9.50% | 12/31/2049 | 90 | 90,000 | ||||||||
Series 22A(e)(k)(l) | 9.50% | 12/31/2049 | 50 | 50,000 | ||||||||
Series 22B(e)(k)(l) | 9.50% | 12/31/2049 | 5 | 5,000 | ||||||||
Series 22C(e)(k)(l) | 9.50% | 12/31/2049 | 35 | 35,000 | ||||||||
Series 22X(e)(k)(l) | 9.50% | 03/31/2024 | 50 | 50,000 | ||||||||
Series 23A(e)(k)(l) | 9.50% | 03/31/2024 | 20 | 20,000 | ||||||||
Series 23B(e)(k)(l) | 9.50% | 03/31/2024 | 15 | 15,000 | ||||||||
Series 23C(e)(k)(l) | 9.50% | 03/31/2024 | 25 | 25,000 | ||||||||
Series 23D (Acquired 05/04/2023; Cost $20,000)(e)(h)(k)(l) | 9.50% | 03/31/2024 | 20 | 20,000 | ||||||||
Series 23E(e)(k)(l) | 9.50% | 03/31/2024 | 25 | 25,000 | ||||||||
Total U.S. Dollar Denominated Bonds & Notes (Cost $435,000) | 435,000 | |||||||||||
TOTAL INVESTMENTS IN SECURITIES(m)-99.80% (Cost $1,662,166,033) | 1,668,688,843 | |||||||||||
OTHER ASSETS LESS LIABILITIES-0.20% | 3,358,272 | |||||||||||
NET ASSETS-100.00% | $1,672,047,115 |
Investment Abbreviations:
AGC | - Assured Guaranty Corp. | |
AGM | - Assured Guaranty Municipal Corp. | |
AMBAC | - American Municipal Bond Assurance Corp. | |
BAM | - Build America Mutual Assurance Co. | |
CEP | - Credit Enhancement Provider | |
COP | - Certificates of Participation | |
Ctfs. | - Certificates | |
FHLMC | - Federal Home Loan Mortgage Corp. | |
GNMA | - Government National Mortgage Association | |
GO | - General Obligation | |
INS | - Insurer | |
LIBOR | - London Interbank Offered Rate | |
LOC | - Letter of Credit | |
MFP | - MuniFund Preferred Shares | |
NATL | - National Public Finance Guarantee Corp. | |
RB | - Revenue Bonds | |
Ref. | - Refunding | |
RN | - Revenue Notes | |
SGI | - Syncora Guarantee, Inc. | |
SIFMA | - Securities Industry and Financial Markets Association | |
SOFR | - Secured Overnight Financing Rate | |
USD | - U.S. Dollar | |
VRD | - Variable Rate Demand | |
Wts. | - Warrants |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
20 | Invesco Short Term Municipal Fund |
Notes to Schedule of Investments:
(a) | Principal and/or interest payments are secured by the bond insurance company listed. |
(b) | Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put. |
(c) | Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral. |
(d) | Security subject to the alternative minimum tax. |
(e) | 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 29, 2024 was $96,757,274, which represented 5.79% of the Fund’s Net Assets. |
(f) | Zero coupon bond issued at a discount. |
(g) | Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary. |
(h) | Restricted security. The aggregate value of these securities at February 29, 2024 was $910,857, which represented less than 1% of the Fund’s Net Assets. |
(i) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 29, 2024. |
(j) | 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 29, 2024. |
(k) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(l) | Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The aggregate value of these securities at February 29, 2024 was $360,000, which represented less than 1% of the Fund’s Net Assets. |
(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 obligations but may be called upon to satisfy issuer’s obligations. No concentration of any single entity was greater than 5% each. |
Portfolio Composition
By credit sector, based on total investments
As of February 29, 2024
Revenue Bonds | 65.84% | |||
General Obligation Bonds | 15.52 | |||
Other | 9.82 | |||
Pre-Refunded Bonds | 8.82 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
21 | Invesco Short Term Municipal Fund |
Statement of Assets and Liabilities
February 29, 2024
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value | $ | 1,668,688,843 | ||
| ||||
Cash | 1,699,985 | |||
| ||||
Receivable for: | ||||
Investments sold | 8,308,621 | |||
| ||||
Fund shares sold | 1,971,547 | |||
| ||||
Interest | 16,923,300 | |||
| ||||
Investments matured, at value (Cost $566,990) | 7,695 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 49,060 | |||
| ||||
Other assets | 69,167 | |||
| ||||
Total assets | 1,697,718,218 | |||
| ||||
Liabilities: | ||||
Payable for: | ||||
Investments purchased | 16,938,688 | |||
| ||||
Dividends | 199,768 | |||
| ||||
Fund shares reacquired | 8,010,687 | |||
| ||||
Accrued fees to affiliates | 380,327 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 1,692 | |||
| ||||
Accrued other operating expenses | 90,881 | |||
| ||||
Trustee deferred compensation and retirement plans | 49,060 | |||
| ||||
Total liabilities | 25,671,103 | |||
| ||||
Net assets applicable to shares outstanding | $ | 1,672,047,115 | ||
|
Net assets consist of: | ||||
Shares of beneficial interest | $ | 1,702,121,531 | ||
| ||||
Distributable earnings (loss) | (30,074,416 | ) | ||
| ||||
$ | 1,672,047,115 | |||
| ||||
Net Assets: | ||||
Class A | $ | 529,925,335 | ||
| ||||
Class Y | $ | 1,079,244,815 | ||
| ||||
Class R6 | $ | 62,876,965 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 142,105,573 | |||
| ||||
Class Y | 289,370,389 | |||
| ||||
Class R6 | 16,802,572 | |||
| ||||
Class A: | ||||
Net asset value and offering price per share | $ | 3.73 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 3.73 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 3.74 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
22 | Invesco Short Term Municipal Fund |
Statement of Operations
For the six months ended February 29, 2024
(Unaudited)
Investment income: | ||||
Interest | $ | 32,689,346 | ||
| ||||
Expenses: | ||||
Advisory fees | 3,336,196 | |||
| ||||
Administrative services fees | 125,380 | |||
| ||||
Custodian fees | 4,120 | |||
| ||||
Distribution fees: | ||||
Class A | 711,530 | |||
| ||||
Transfer agent fees – A and Y | 727,324 | |||
| ||||
Transfer agent fees – R6 | 4,541 | |||
| ||||
Trustees’ and officers’ fees and benefits | 19,242 | |||
| ||||
Registration and filing fees | 58,069 | |||
| ||||
Reports to shareholders | 108,682 | |||
| ||||
Professional services fees | 64,548 | |||
| ||||
Other | 15,623 | |||
| ||||
Total expenses | 5,175,255 | |||
| ||||
Less: Expense offset arrangement(s) | (1,571 | ) | ||
| ||||
Net expenses | 5,173,684 | |||
| ||||
Net investment income | 27,515,662 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from unaffiliated investment securities (includes net gains (losses) from securities sold to affiliates of $(1,049,173)) | (7,307,048 | ) | ||
| ||||
Change in net unrealized appreciation of unaffiliated investment securities | 12,912,970 | |||
| ||||
Net realized and unrealized gain | 5,605,922 | |||
| ||||
Net increase in net assets resulting from operations | $ | 33,121,584 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
23 | Invesco Short Term Municipal Fund |
Statement of Changes in Net Assets
For the six months ended February 29, 2024 and the year ended August 31, 2023
(Unaudited)
February 29, 2024 | August 31, 2023 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 27,515,662 | $ | 57,693,882 | ||||
| ||||||||
Net realized gain (loss) | (7,307,048 | ) | (13,744,260 | ) | ||||
| ||||||||
Change in net unrealized appreciation | 12,912,970 | 490,608 | ||||||
| ||||||||
Net increase in net assets resulting from operations | 33,121,584 | 44,440,230 | ||||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (9,112,237 | ) | (16,930,046 | ) | ||||
| ||||||||
Class Y | (18,990,498 | ) | (33,316,311 | ) | ||||
| ||||||||
Class R6 | (1,073,526 | ) | (1,584,619 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (29,176,261 | ) | (51,830,976 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (83,289,286 | ) | (386,987,386 | ) | ||||
| ||||||||
Class Y | (67,369,255 | ) | (389,898,862 | ) | ||||
| ||||||||
Class R6 | (86,873 | ) | 17,329,638 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (150,745,414 | ) | (759,556,610 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (146,800,091 | ) | (766,947,356 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 1,818,847,206 | 2,585,794,562 | ||||||
| ||||||||
End of period | $ | 1,672,047,115 | $ | 1,818,847,206 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
24 | Invesco Short Term Municipal Fund |
(Unaudited)
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 expenses 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 02/29/24 | $3.72 | $0.06 | $ 0.01 | $ 0.07 | $(0.06 | ) | $3.73 | 1.88 | % | $ 529,925 | 0.77 | %(d) | 0.77 | %(d) | 0.77 | %(d) | 3.02 | %(d) | 57 | % | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 3.73 | 0.09 | (0.01 | ) | 0.08 | (0.09 | ) | 3.72 | 2.05 | 612,000 | 0.74 | 0.74 | 0.74 | 2.51 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 3.79 | 0.02 | (0.06 | ) | (0.04 | ) | (0.02 | ) | 3.73 | (1.08 | ) | 1,001,761 | 0.75 | 0.75 | 0.74 | 0.57 | 114 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 3.79 | 0.02 | 0.01 | 0.03 | (0.03 | ) | 3.79 | 0.72 | 1,581,245 | 0.78 | 0.78 | 0.75 | 0.59 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 3.77 | 0.06 | 0.02 | 0.08 | (0.06 | ) | 3.79 | 2.14 | 896,488 | 0.82 | 0.82 | 0.76 | 1.56 | 89 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended 08/31/19 | 3.75 | 0.02 | 0.02 | 0.04 | (0.02 | ) | 3.77 | 1.03 | 405,334 | 0.82 | (d) | 0.82 | (d) | 0.76 | (d) | 1.72 | (d) | 13 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 05/31/19 | 3.72 | 0.07 | 0.03 | 0.10 | (0.07 | ) | 3.75 | 2.74 | 402,504 | 0.85 | 0.85 | 0.77 | 1.85 | 69 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 3.72 | 0.06 | 0.01 | 0.07 | (0.06 | ) | 3.73 | 2.01 | 1,079,245 | 0.52 | (d) | 0.52 | (d) | 0.52 | (d) | 3.27 | (d) | 57 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 3.73 | 0.10 | (0.01 | ) | 0.09 | (0.10 | ) | 3.72 | 2.30 | 1,144,013 | 0.49 | 0.49 | 0.49 | 2.76 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 3.80 | 0.03 | (0.07 | ) | (0.04 | ) | (0.03 | ) | 3.73 | (1.08 | ) | 1,538,307 | 0.50 | 0.50 | 0.49 | 0.82 | 114 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 3.79 | 0.03 | 0.02 | 0.05 | (0.04 | ) | 3.80 | 1.24 | 1,764,272 | 0.53 | 0.53 | 0.50 | 0.84 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 3.77 | 0.07 | 0.02 | 0.09 | (0.07 | ) | 3.79 | 2.39 | 1,230,817 | 0.57 | 0.57 | 0.51 | 1.81 | 89 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended 08/31/19 | 3.75 | 0.02 | 0.02 | 0.04 | (0.02 | ) | 3.77 | 1.09 | 797,580 | 0.57 | (d) | 0.57 | (d) | 0.51 | (d) | 1.97 | (d) | 13 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 05/31/19 | 3.72 | 0.08 | 0.03 | 0.11 | (0.08 | ) | 3.75 | 3.00 | 786,224 | 0.60 | 0.60 | 0.52 | 2.09 | 69 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 02/29/24 | 3.73 | 0.06 | 0.02 | 0.08 | (0.07 | ) | 3.74 | 2.04 | 62,877 | 0.44 | (d) | 0.44 | (d) | 0.44 | (d) | 3.35 | (d) | 57 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/23 | 3.75 | 0.11 | (0.03 | ) | 0.08 | (0.10 | ) | 3.73 | 2.10 | 62,833 | 0.42 | 0.42 | 0.42 | 2.83 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/22 | 3.81 | 0.03 | (0.06 | ) | (0.03 | ) | (0.03 | ) | 3.75 | (0.75 | ) | 45,727 | 0.44 | 0.44 | 0.43 | 0.88 | 114 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/21 | 3.80 | 0.03 | 0.02 | 0.05 | (0.04 | ) | 3.81 | 1.32 | 25,405 | 0.44 | 0.44 | 0.41 | 0.93 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/20 | 3.77 | 0.07 | 0.03 | 0.10 | (0.07 | ) | 3.80 | 2.72 | 2,903 | 0.50 | 0.51 | 0.44 | 1.88 | 89 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended 08/31/19 | 3.75 | 0.02 | 0.02 | 0.04 | (0.02 | ) | 3.77 | 1.10 | 10 | 0.50 | (d) | 0.50 | (d) | 0.44 | (d) | 2.05 | (d) | 13 | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended 05/31/19(e) | 3.75 | 0.00 | 0.00 | 0.00 | (0.00 | ) | 3.75 | 2.73 | 10 | 0.50 | (d) | 0.50 | (d) | 0.42 | (d) | 2.20 | (d) | 69 |
(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) | Annualized. |
(e) | Commencement date after the close of business on May 24, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
25 | Invesco Short Term Municipal Fund |
February 29, 2024
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Short Term 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 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 to seek tax-free income.
The Fund currently consists of three different classes of shares: Class A, Class Y and Class R6. Class Y shares are available only to certain investors. Class A, 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 generally are valued on the basis of prices provided by independent pricing services. Prices 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, and their value may be adjusted accordingly. 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 are not readily available are fair valued by Invesco Advisers, Inc. (the “Adviser” or “Invesco”) in accordance with Board-approved policies and related Adviser procedures (“Valuation Procedures”). If a fair value price provided by a pricing service is not representative of market value in the Adviser’s judgment (“unreliable”), the Adviser will fair value the security using the Valuation Procedures. 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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally 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.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
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 an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, 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 |
26 | Invesco Short Term Municipal Fund |
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 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 the relative value of settled shares. |
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. | Securities Purchased on a When-Issued and Delayed Delivery Basis - The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date. |
J. | Other Risks - The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located. Since many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and the Fund’s investments in municipal securities. There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service. |
Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s operations, universe of potential investment options, and return potential.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. 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 $ 100 million | 0.500% | |||
| ||||
Next $150 million | 0.450% | |||
| ||||
Next $250 million | 0.425% | |||
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Next $500 million | 0.400% | |||
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Next $4 billion | 0.370% | |||
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Over $5 billion | 0.350% | |||
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* | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the six months ended February 29, 2024, the effective advisory fee rate incurred by the Fund was 0.39%.
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. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (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). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has agreed, for an indefinite period, 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 Y and Class R6 shares to 1.50%, 1.25% and 1.25%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including
27 | Invesco Short Term Municipal Fund |
litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
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 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A 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, shares (collectively, the “Plans”). The Fund, pursuant to the Plans, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A 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 29, 2024 , expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 29, 2024, IDI advised the Fund that IDI retained $2,725 in front-end sales commissions from the sale of Class A shares and $1,903 from Class A shares 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. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of February 29, 2024. 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 | $– | $ | 1,639,633,843 | $ | – | $ | 1,639,633,843 | |||||||||
MuniFund Preferred Shares | – | 28,620,000 | – | 28,620,000 | ||||||||||||
U.S. Dollar Denominated Bonds & Notes | – | – | 435,000 | 435,000 | ||||||||||||
Total Investments in Securities | – | 1,668,253,843 | 435,000 | 1,668,688,843 | ||||||||||||
Other Investments - Assets | ||||||||||||||||
Investments Matured | – | 7,695 | – | 7,695 | ||||||||||||
Total Investments | $– | $ | 1,668,261,538 | $ | 435,000 | $ | 1,668,696,538 |
NOTE 4–Security Transactions with Affiliated Funds
The Fund is permitted to purchase securities from or sell securities to certain other affiliated 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 that is or could be considered an “affiliated person” by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers is made in reliance on Rule 17a-7 of the 1940 Act and, to the extent applicable, related SEC staff positions. Each such transaction is effected at the security’s “current market price”, as provided for in these procedures and Rule 17a-7. Pursuant to these procedures, for the six months ended February 29, 2024, the Fund engaged in securities purchases of $59,226,931 and securities sales of $121,310,698, which resulted in net realized gains (losses) of $(1,049,173).
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 29, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $1,571.
28 | Invesco Short Term Municipal Fund |
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 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 fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2023, as follows:
Capital Loss Carryforward* | ||||||||||||
| ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
| ||||||||||||
Not subject to expiration | $ | 18,547,729 | $ | 17,405,944 | $ | 35,953,673 | ||||||
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* | Capital loss carryforward 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. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended February 29, 2024 was $960,460,337 and $1,080,212,125, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
Aggregate unrealized appreciation of investments | $8,679,329 | |||
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Aggregate unrealized (depreciation) of investments | (3,626,044 | ) | ||
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Net unrealized appreciation of investments | $5,053,285 | |||
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Cost of investments for tax purposes is $1,663,643,253.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
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Six months ended | Year ended | |||||||||||||||
February 29, 2024(a) | August 31, 2023 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 12,757,569 | $ | 47,454,712 | 30,017,027 | $ | 111,940,119 | ||||||||||
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Class Y | 79,848,599 | 296,710,674 | 209,042,727 | 780,035,504 | ||||||||||||
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Class R6 | 3,502,628 | 13,073,682 | 12,463,193 | 46,661,401 | ||||||||||||
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Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 1,907,287 | 7,085,928 | 3,383,777 | 12,623,660 | ||||||||||||
| ||||||||||||||||
Class Y | 3,455,958 | 12,842,974 | 5,636,206 | 21,027,036 | ||||||||||||
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Class R6 | 70,428 | 262,714 | 68,355 | 255,758 | ||||||||||||
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29 | Invesco Short Term Municipal Fund |
Summary of Share Activity | ||||||||||||||||
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Six months ended | Year ended | |||||||||||||||
February 29, 2024(a) | August 31, 2023 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (37,083,998 | ) | $ | (137,829,926 | ) | (137,130,281 | ) | $ | (511,551,165 | ) | ||||||
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Class Y | (101,428,446 | ) | (376,922,903 | ) | (319,106,517 | ) | (1,190,961,402 | ) | ||||||||
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Class R6 | (3,603,437 | ) | (13,423,269 | ) | (7,903,669 | ) | (29,587,521 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (40,573,412 | ) | $ | (150,745,414 | ) | (203,529,182 | ) | $ | (759,556,610 | ) | ||||||
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(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 71% 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. |
30 | Invesco Short Term 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, 2023 through February 29, 2024.
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 (09/01/23) | Ending Account Value (02/29/24)1 | Expenses Paid During Period2 | Ending Account Value (02/29/24) | Expenses Paid During Period2 | Annualized Expense Ratio | |||||||
Class A | $1,000.00 | $1,018.80 | $3.86 | $1,021.03 | $3.87 | 0.77% | ||||||
Class Y | 1,000.00 | 1,020.10 | 2.61 | 1,022.28 | 2.61 | 0.52 | ||||||
Class R6 | 1,000.00 | 1,020.40 | 2.21 | 1,022.68 | 2.21 | 0.44 |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2023 through February 29, 2024, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
31 | Invesco Short Term Municipal Fund |
A Special Joint Meeting (“Meeting”) of Shareholders of AIM Counselor Series Trust (Invesco Counselor Series Trust), a Delaware statutory trust (“Trust”), was held on January 16, 2024. The Meeting was held for the following purpose:
(1) Elect 14 trustees to the Board of Trustees of the Trust, each of whom will serve until his or her successor is duly elected and qualified.
The results of the voting on the above matter were as follows:
Matter | Votes For | Votes Against/Withheld | ||||||||||
(1)* | Beth Ann Brown | 3,109,848,785.61 | 65,706,470.15 | |||||||||
Carol Deckbar | 3,109,186,378.07 | 66,368,877.70 | ||||||||||
Cynthia Hostetler | 3,108,148,647.37 | 67,406,608.40 | ||||||||||
Dr. Eli Jones | 3,106,962,123.35 | 68,593,132.42 | ||||||||||
Elizabeth Krentzman | 3,109,153,762.02 | 66,401,493.75 | ||||||||||
Jeffrey H. Kupor | 3,109,094,174.85 | 66,461,080.92 | ||||||||||
Anthony J. LaCava, Jr. | 3,107,453,603.09 | 68,101,652.67 | ||||||||||
James Liddy | 3,108,418,832.17 | 67,136,423.60 | ||||||||||
Dr. Prema Mathai-Davis | 3,100,922,564.57 | 74,632,691.20 | ||||||||||
Joel W. Motley | 3,104,496,522.60 | 71,058,733.17 | ||||||||||
Teresa M. Ressel | 3,109,248,693.76 | 66,306,562.01 | ||||||||||
Douglas Sharp | 3,108,681,578.09 | 66,873,677.67 | ||||||||||
Robert C. Troccoli | 3,104,038,320.81 | 71,516,934.96 | ||||||||||
Daniel S. Vandivort | 3,106,373,978.14 | 69,181,277.62 |
* Proposal 1 required approval by a combined vote of all the portfolios of AIM Counselor Series Trust (Invesco Counselor Series Trust).
32 | Invesco Short Term Municipal Fund |
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Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
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Fund holdings and proxy voting information
The Fund provides a complete list of its portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, 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/ corporate/about-us/esg. 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. This 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 number(s): 811-09913 and 333-36074 | Invesco Distributors, Inc. | O-STM-SAR-1 |
Semiannual Report to Shareholders | February 29, 2024 |
Invesco SMA Municipal Bond Fund
Nasdaq:
SMBMX
2 | ||
4 | ||
7 | ||
10 | ||
11 | ||
15 | ||
16 |
Beginning in July 2024, amendments adopted by the Securities and Exchange Commission will substantially impact the design, content, and delivery of shareholder reports. These newly designed shareholder reports will highlight key fund information in a clear and concise format and must be mailed to each shareholder that has not elected to receive the reports electronically. Other information, including financial statements, will no longer be included in the shareholder report but will be available at invesco.com/reports, delivered upon request, and filed on a semi-annual basis on Form N-CSR.
If you would like to receive shareholder reports and other communications electronically instead of by mail, you may make that request 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. If you do not make this request or enroll in e-delivery, you will receive future shareholder reports and other communications by mail.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is 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, 8/31/23 to 2/29/24, at net asset value (NAV). |
| |||
Invesco SMA Municipal Bond Fund Shares | 3.57 | % | ||
S&P Municipal Bond Index▼ (Broad Market Index)* | 4.23 | |||
Bloomberg U.S. Aggregate Bond Index▼ (Broad Market Index)* | 2.35 | |||
S&P Municipal Bond High Yield Index▼ (Style-Specific Index) | 6.11 | |||
Custom Invesco Short Duration High Yield Municipal Index∎ (Style-Specific Index) | 4.57 | |||
Source(s): ▼RIMES Technologies Corp.; ∎Invesco, RIMES Technologies Corp. |
| |||
*Effective April 1, 2024, the Fund changed its broad-based securities market benchmark from the Bloomberg U.S. Aggregate Bond Index to the S&P Municipal Bond Index. The Fund had previously changed its broad-based securities market benchmark from the S&P Municipal Bond High Yield Index to the Bloomberg U.S. Aggregate Bond Index in December 2023. The Fund believes the S&P Municipal Bond Index is a more appropriate comparison for evaluating the Fund’s performance. |
| |||
The S&P Municipal Bond Index is a broad, market value-weighted index that seeks to measure the performance of the US municipal bond market. |
| |||
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market. |
| |||
The S&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. |
| |||
The Custom 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. The S&P Municipal Bond High Yield Index is considered representative of municipal bonds that are not rated or are rated below investment grade. The S&P Municipal Bond Short Index is considered representative of US municipal bonds with maturities between six months and four years. |
| |||
Shares of the Fund may be purchased or held by or on behalf of wrap fee, separately managed and other discretionary accounts (SMAs). Comparisons of the Fund’s performance versus its benchmark index will differ from comparisons of the benchmark against the performance of such accounts. |
| |||
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. |
|
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
2 | Invesco SMA Municipal Bond Fund |
Average Annual Total Returns |
| |||
As of 2/29/24 |
| |||
Invesco SMA Municipal Bond Fund Shares | ||||
Inception (2/21/23) | 5.52 | % |
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please contact your SMA program sponsor or financial adviser for the most recent month-end SMA performance. Performance figures reflect reinvested distributions and changes in net asset value. 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.
Shares of the Fund may be purchased and held by or on behalf of SMAs for which Invesco Advisers, Inc. (Invesco or the Advisers) or its affiliates have an agreement with a program sponsor or directly with the client, to provide management or advisory services to the account. Performance figures do not reflect the fees and expenses paid by participants at the wrap fee, separately managed or other discretionary account level. You should evaluate the performance of the Fund in the context of your SMA program.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. All operating expenses of the Fund (excluding certain items discussed herein) were reimbursed by the Adviser. 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 SMA Municipal Bond Fund |
February 29, 2024
(Unaudited)
Principal | ||||||||||||||
Interest | Maturity | Amount | ||||||||||||
Rate | Date | (000) | Value | |||||||||||
Municipal Obligations–98.53% | ||||||||||||||
Alabama–4.70% | ||||||||||||||
Black Belt Energy Gas District (The); Series 2022 F, RB | 5.25% | 12/01/2027 | $460 | $ 479,682 | ||||||||||
Arizona–3.74% | ||||||||||||||
Maricopa (County of), AZ Industrial Development Authority (Legacy Traditional Schools); Series 2019, Ref. RB(a) | 5.00% | 07/01/2039 | 250 | 250,910 | ||||||||||
Phoenix (City of), AZ Industrial Development Authority (Legacy Traditional Schools); Series 2014 A, RB(a) | 5.75% | 07/01/2024 | 130 | 130,527 | ||||||||||
381,437 | ||||||||||||||
California–9.90% | ||||||||||||||
California (State of) Housing Finance Agency; Series 2019 A-2, RB | 4.00% | 03/20/2033 | 233 | 233,484 | ||||||||||
California (State of) School Finance Authority (TEACH Public Schools); Series 2019 A, RB(a) | 5.00% | 06/01/2029 | 275 | 278,350 | ||||||||||
California (State of) Statewide Communities Development Authority (California Baptist University); Series 2014 A, RB(a) | 6.13% | 11/01/2033 | 250 | 250,435 | ||||||||||
California (State of) Statewide Communities Development Authority (Loma Linda University Medical Center); Series 2014, RB | 5.50% | 12/01/2054 | 250 | 246,876 | ||||||||||
1,009,145 | ||||||||||||||
Florida–4.84% | ||||||||||||||
Florida Development Finance Corp. (Mater Academy); Series 2022 A, RB | 5.00% | 06/15/2031 | 235 | 243,832 | ||||||||||
Miami Beach (City of), FL; Series 2017, Ref. RB | 5.00% | 09/01/2047 | 250 | 250,012 | ||||||||||
493,844 | ||||||||||||||
Georgia–10.10% | ||||||||||||||
Atlanta (City of), GA Urban Residential Finance Authority (GE Tower Apartments); Series 2023 B, RB(b) | 5.75% | 06/01/2025 | 280 | 278,946 | ||||||||||
Burke (County of), GA Development Authority (Georgia Power Company); Series 1996, RB(b) | 3.88% | 03/06/2026 | 250 | 250,652 | ||||||||||
Main Street Natural Gas, Inc.; Series 2023 A, RB(b) | 5.00% | 06/01/2030 | 475 | 500,172 | ||||||||||
1,029,770 | ||||||||||||||
Illinois–2.44% | ||||||||||||||
Chicago (City of), IL Board of Education; Series 2015 C, GO Bonds | 5.25% | 12/01/2039 | 250 | 248,840 | ||||||||||
Indiana–2.50% | ||||||||||||||
Whiting (City of), IN (BP Products North America, Inc.); Series 2015, RB(b)(c) | 4.40% | 06/10/2031 | 250 | 254,511 | ||||||||||
Iowa–3.11% | ||||||||||||||
Iowa (State of) Finance Authority (Iowa Fertilizer Co.); Series 2022, Ref. RB(b) | 5.00% | 12/01/2042 | 300 | 317,164 | ||||||||||
Louisiana–2.43% | ||||||||||||||
St. John the Baptist (Parish of), LA (Marathon Oil Corp.); Series 2017, Ref. RB(b) | 4.05% | 07/01/2026 | 250 | 248,128 | ||||||||||
Massachusetts–4.91% | ||||||||||||||
Massachusetts (Commonwealth of) Development Finance Agency (Atrius Health); Series 2015, Ref. RB | 5.00% | 01/01/2041 | 250 | 250,953 | ||||||||||
Massachusetts (Commonwealth of) Development Finance Agency (Boston Medical Center) (Green Bonds); Series 2015, RB | 5.00% | 07/01/2044 | 250 | 250,088 | ||||||||||
501,041 | ||||||||||||||
Minnesota–1.64% | ||||||||||||||
Brooklyn Park (City of), MN (Athlos Leadership Academy); Series 2015 A, RB | 4.75% | 07/01/2025 | 170 | 167,487 | ||||||||||
Missouri–3.04% | ||||||||||||||
Missouri (State of) Health & Educational Facilities Authority (Truman Medical Center, Inc.); Series 2017, RB(a) | 5.00% | 12/01/2037 | 300 | 310,148 | ||||||||||
New York–7.54% | ||||||||||||||
Metropolitan Transportation Authority; Subseries 2015 E-1, VRD RB (LOC - Barclays Bank PLC)(d)(e) | 2.85% | 11/15/2050 | 60 | 60,000 | ||||||||||
New York (City of), NY Transitional Finance Authority; Series 2016 E4, VRD RB(d) | 3.10% | 02/01/2045 | 200 | 200,000 | ||||||||||
New York Transportation Development Corp. (American Airlines, Inc.); Series 2016, Ref. RB(c) | 5.00% | 08/01/2031 | 250 | 250,012 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4 | Invesco SMA Municipal Bond Fund |
Principal | ||||||||||||||
Interest | Maturity | Amount | ||||||||||||
Rate | Date | (000) | Value | |||||||||||
New York–(continued) | ||||||||||||||
New York Transportation Development Corp. (Terminal 4 JFK International Airport); Series 2020, Ref. RB(c) | 5.00% | 12/01/2026 | $250 | $ 258,496 | ||||||||||
768,508 | ||||||||||||||
Ohio–3.71% | ||||||||||||||
Hamilton (County of), OH (Trihealth, Inc. Obligated); Series 2021, VRD Ref. RB(d) | 3.00% | 08/15/2051 | 125 | 125,000 | ||||||||||
Ohio (State of) Higher Educational Facility Commission; Series 2015, Ref. RB | 5.00% | 07/01/2041 | 250 | 253,543 | ||||||||||
378,543 | ||||||||||||||
Oregon–3.30% | ||||||||||||||
Portland (Port of), OR (Green Bonds); Twenty Ninth Series 2023, RB(c) | 5.25% | 07/01/2039 | 300 | 336,305 | ||||||||||
Pennsylvania–10.08% | ||||||||||||||
Allentown (City of), PA Neighborhood Improvement Zone Development Authority (City Center); Series 2018, RB(a) | 5.00% | 05/01/2028 | 250 | 258,480 | ||||||||||
Montgomery (County of), PA Industrial Development Authority (Constellation Energy); Series 2023 B, Ref. RB | 4.10% | 06/01/2029 | 250 | 258,205 | ||||||||||
Pennsylvania (Commonwealth of) Economic Development Financing Authority (PA Bridges Finco L.P.); Series 2015, RB(c) | 5.00% | 12/31/2034 | 250 | 255,116 | ||||||||||
Pennsylvania (Commonwealth of) Economic Development Financing Authority (Pennsylvania Rapid Bridge Replacement); Series 2015, RB(c) | 5.00% | 12/31/2029 | 250 | 255,680 | ||||||||||
1,027,481 | ||||||||||||||
Texas–12.74% | ||||||||||||||
Bexar County Health Facilities Development Corp. (Army Retirement Residence Foundation); Series 2016, Ref. RB | 5.00% | 07/15/2025 | 430 | 429,806 | ||||||||||
Houston (City of), TX Airport System (United Airlines, Inc. Terminal E); Series 2014, Ref. RB(c) | 4.75% | 07/01/2024 | 115 | 115,235 | ||||||||||
Houston (City of), TX Airport System (United Airlines, Inc.); Series 2018, RB(c) | 5.00% | 07/15/2028 | 250 | 254,988 | ||||||||||
New Hope Cultural Education Facilities Finance Corp. (Presbyterian Village North); Series 2018, Ref. RB | 5.00% | 10/01/2024 | 500 | 499,532 | ||||||||||
1,299,561 | ||||||||||||||
Virginia–2.45% | ||||||||||||||
Chesapeake (City of), VA Expressway; Series 2012 A, RB | 5.00% | 07/15/2047 | 250 | 250,087 | ||||||||||
Wisconsin–5.36% | ||||||||||||||
Wisconsin (State of) Public Finance Authority (Coral Academy of Science Reno); Series 2019, Ref. RB(a) | 5.00% | 06/01/2029 | 335 | 337,484 | ||||||||||
Wisconsin (State of) Public Finance Authority (Prime Healthcare Foundation, Inc.); Series 2018 A, RB | 5.00% | 12/01/2027 | 205 | 208,707 | ||||||||||
546,191 | ||||||||||||||
TOTAL INVESTMENTS IN SECURITIES–98.53% (Cost $9,925,421) | 10,047,873 | |||||||||||||
OTHER ASSETS LESS LIABILITIES–1.47% | 149,813 | |||||||||||||
NET ASSETS–100.00% | $10,197,686 |
Investment Abbreviations:
| ||
GO | - General Obligation | |
LOC | - Letter of Credit | |
RB | - Revenue Bonds | |
Ref. | - Refunding | |
VRD | - Variable Rate Demand |
Notes to Schedule of Investments:
(a) | 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 29, 2024 was $1,816,334, which represented 17.81% of the Fund’s Net Assets. |
(b) | Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put. |
(c) | Security subject to the alternative minimum tax. |
(d) | 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 29, 2024. |
(e) | Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco SMA Municipal Bond Fund |
Portfolio Composition
By credit sector, based on total investments
As of February 29, 2024
Revenue Bonds | 93.69% | |||
Other | 3.83 | |||
General Obligation Bonds | 2.48 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco SMA Municipal Bond Fund |
Statement of Assets and Liabilities
February 29, 2024
(Unaudited)
Assets: | ||
Investments in unaffiliated securities, at value | $10,047,873 | |
Receivable for: | ||
Investments sold | 300,332 | |
Interest | 113,702 | |
Investment for trustee deferred compensation and retirement plans | 2,353 | |
Other assets | 65,318 | |
Total assets | 10,529,578 | |
Liabilities: | ||
Payable for: | ||
Dividends | 35,700 | |
Amount due custodian | 228,514 | |
Accrued fees to affiliates | 228 | |
Accrued trustees’ and officers’ fees and benefits | 5,585 | |
Accrued other operating expenses | 59,512 | |
Trustee deferred compensation and retirement plans | 2,353 | |
Total liabilities | 331,892 | |
Net assets applicable to shares outstanding | $10,197,686 |
Net assets consist of: | ||
Shares of beneficial interest | $10,000,000 | |
Distributable earnings | 197,686 | |
$10,197,686 | ||
Shares outstanding, no par value, with an unlimited number of shares authorized: | ||
Shares outstanding | 1,000,000 | |
Net asset value and offering price per share | $ 10.20 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco SMA Municipal Bond Fund |
Statement of Operations
For the six months ended February 29, 2024
(Unaudited)
Investment income: | ||||
Interest | $ | 225,427 | ||
| ||||
Expenses: | ||||
Administrative services fees | 695 | |||
| ||||
Custodian fees | 57 | |||
| ||||
Transfer agent fees | 775 | |||
| ||||
Trustees’ and officers’ fees and benefits | 15,668 | |||
| ||||
Registration and filing fees | 2,745 | |||
| ||||
Professional services fees | 134,761 | |||
| ||||
Other | (4,080 | ) | ||
| ||||
Total expenses | 150,621 | |||
| ||||
Less: Expenses reimbursed | (150,614 | ) | ||
| ||||
Net expenses | 7 | |||
| ||||
Net investment income | 225,420 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from unaffiliated investment securities | (18,363 | ) | ||
| ||||
Change in net unrealized appreciation of unaffiliated investment securities | 146,201 | |||
| ||||
Net realized and unrealized gain | 127,838 | |||
| ||||
Net increase in net assets resulting from operations | $ | 353,258 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco SMA Municipal Bond Fund |
Statement of Changes in Net Assets
For the six months ended February 29, 2024 and for the period February 21, 2023 (commencement date) through August 31, 2023
(Unaudited)
Six Months Ended February 29, 2024 | February 21, 2023 (commencement date) through August 31, 2023 | |||||||
Operations: | ||||||||
Net investment income | $ 225,420 | $ 218,439 | ||||||
Net realized gain (loss) | (18,363 | ) | 2,538 | |||||
Change in net unrealized appreciation (depreciation) | 146,201 | (23,749 | ) | |||||
Net increase in net assets resulting from operations | 353,258 | 197,228 | ||||||
Distributions to shareholders from distributable earnings | (214,200 | ) | (138,600 | ) | ||||
Total distributions from distributable earnings | (214,200 | ) | (138,600 | ) | ||||
Net increase in net assets resulting from share transactions | – | 10,000,000 | ||||||
Net increase in net assets | 139,058 | 10,058,628 | ||||||
Net assets: | ||||||||
Beginning of period | 10,058,628 | – | ||||||
End of period | $10,197,686 | $10,058,628 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco SMA Municipal Bond Fund |
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Six Months Ended | Period Ended | |||||||
February 29, | August 31, | |||||||
2024 | 2023(a) | |||||||
| ||||||||
Net asset value, beginning of period | $ 10.06 | $ 10.00 | ||||||
| ||||||||
Net investment income(b) | 0.23 | 0.22 | ||||||
| ||||||||
Net gains (losses) on securities (both realized and unrealized) | 0.12 | (0.02) | ||||||
| ||||||||
Total from investment operations | 0.35 | 0.20 | ||||||
| ||||||||
Less: Dividends from net investment income | (0.21 | ) | (0.14) | |||||
| ||||||||
Net asset value, end of period | $ 10.20 | $ 10.06 | ||||||
| ||||||||
Total return(c) | 3.57 | % | 1.99% | |||||
| ||||||||
Net assets, end of period (000’s omitted) | $10,198 | $10,059 | ||||||
| ||||||||
Portfolio turnover rate(d) | 22 | % | 166% | |||||
| ||||||||
Ratios/supplemental data based on average net assets: | ||||||||
Ratio of expenses: | ||||||||
| ||||||||
With fee waivers and/or expense reimbursements | 0.00 | %(e) | 0.00% | (e) | ||||
| ||||||||
Without fee waivers and/or expense reimbursements | 3.01 | %(e) | 2.46% | (e) | ||||
| ||||||||
Ratio of net investment income to average net assets | 4.51 | %(e) | 4.11% | (e) | ||||
|
(a) | Commencement date of February 21, 2023. |
(b) | Calculated using average shares outstanding. |
(c) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Not annualized for periods less than one year, if applicable. |
(d) | Portfolio turnover is not annualized for periods less than one year, if applicable. |
(e) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco SMA Municipal Bond Fund |
February 29, 2024
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco SMA Municipal 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 to provide high current income exempt from regular federal income taxes with taxable capital appreciation as a secondary objective.
Shares of the Fund may be purchased and held by or on behalf of wrap fee, separately managed and other discretionary accounts (SMAs) for which Invesco Advisers, Inc (Invesco or the Adviser) or its affiliates have an agreement with a program sponsor or directly with the client, to provide management or advisory services to the account.
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 generally are valued on the basis of prices provided by independent pricing services. Prices 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, and their value may be adjusted accordingly. 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 are not readily available are fair valued by Invesco Advisers, Inc. (the “Adviser” or “Invesco”) in accordance with Board-approved policies and related Adviser procedures (“Valuation Procedures”). If a fair value price provided by a pricing service is not representative of market value in the Adviser’s judgment (“unreliable”), the Adviser will fair value the security using the Valuation Procedures. 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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally 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.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
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 an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, 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 |
11 | Invesco SMA Municipal Bond Fund |
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. | 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. |
G. | 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. |
H. | Securities Purchased on a When-Issued and Delayed Delivery Basis – The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date. |
I. | Other Risks – Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs. |
Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s operations, universe of potential investment options, and return potential.
The Fund may invest in lower-quality debt securities, i.e., “junk bonds”. Investments in lower-rated securities or unrated securities of comparable quality tend to be more sensitive to economic conditions than higher rated securities. Junk bonds involve a greater risk of default by the issuer because such securities are generally unsecured and are often subordinated to other creditors’ claims. Junk bonds are less liquid than investment grade debt securities and their prices tend to be more volatile.
Medium- and lower-grade municipal securities generally involve more volatility and greater risks, including credit, market, liquidity and management risks, than higher- grade securities. Furthermore, many issuers of medium- and lower-grade securities choose not to have a rating assigned to their obligations. As such, the Fund’s portfolio may consist of a higher portion of unrated securities than an investment company investing solely in higher-grade securities. Unrated securities may not be as attractive to as many buyers as are rated securities, which may have the effect of limiting the Fund’s ability to sell such securities at the desired price.
The municipal issuers in which the Fund invests may be located in the same geographic area or may pay their interest obligations from revenue of similar projects, such as hospitals, airports, utility systems and housing finance agencies. This may make the Fund’s investments more susceptible to similar social, economic, political or regulatory occurrences, making the Fund more susceptible to experience a drop in its share price than if the Fund had been more diversified across issuers that did not have similar characteristics.
The risk of a municipal obligation generally depends on the financial and credit status of the issuer. Constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives, and the issuer’s regional economic conditions may affect the municipal security’s value, interest payments, repayment of principal and the Fund’s ability to sell the security. Failure of a municipal security issuer to comply with applicable tax requirements may make income paid thereon taxable, resulting in a decline in the security’s value. In addition, there could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state tax status of municipal securities.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund does not pay an advisory fee. However, Invesco will be compensated directly or indirectly by clients or account program sponsors for managed account advisory services, including with respect to assets that may be invested in the Fund.
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. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (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).
Invesco has contractually agreed to reimburse expenses necessary to limit total fund operating expenses after expense reimbursement (excluding (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) to 0.00% of the Fund’s average daily net assets (the “expense limit”). This expense reimbursement agreement will continue in effect for so long as Invesco serves as adviser to the Fund. The expense reimbursement agreement cannot be terminated or amended to increase the expense limit without approval of the Board of Trustees.
For the period February 21, 2023 (commencement date) through February 29, 2024, the Adviser reimbursed expenses of $150,614.
12 | Invesco SMA Municipal Bond Fund |
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
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 29, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
Certain officers and trustees of the Trust are officers and directors of Invesco.
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. 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 Adviser’s 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 29, 2024, 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–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 5–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 at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 6–Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from 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 fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of August 31, 2023.
NOTE 7–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the period February 21, 2023 (commencement date) through February 29, 2024, was $2,220,299 and $2,262,834, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments | $ | 127,133 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (4,681 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 122,452 | ||
|
Cost of investments for tax purposes is $9,925,421.
13 | Invesco SMA Municipal Bond Fund |
NOTE 8–Share Information
Summary of Share Activity | ||||||||||||
| ||||||||||||
Six Months Ended | ||||||||||||
February 29, 2024(a) | August 31, 2023(b) | |||||||||||
Shares | Amount | Shares | Amount | |||||||||
| ||||||||||||
Sold | – | $– | 1,000,001 | $ | 10,000,010 | |||||||
| ||||||||||||
Reacquired | – | – | (1 | ) | (10 | ) | ||||||
| ||||||||||||
Net increase in share activity | – | $– | 1,000,000 | $ | 10,000,000 | |||||||
|
(a) | 100% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
(b) | Commencement date of February 21, 2023. |
14 | Invesco SMA Municipal 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 February 21, 2023 (commencement date) through February 29, 2024.
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 (09/01/23) | Ending Account Value (02/29/24)1 | Expenses Paid During Period2 | Ending Account Value (02/29/24) | Expenses Paid During Period2 | Annualized Expense Ratio | |||||
$1,000.00 | $1,035.70 | $0.00 | $1,024.86 | $0.00 | 0.00% |
1 | The actual ending account value is based on the actual total return of the Fund for the period September 1, 2023 through February 29, 2024, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
15 | Invesco SMA Municipal Bond Fund |
A Special Joint Meeting (“Meeting”) of Shareholders of AIM Counselor Series Trust (Invesco Counselor Series Trust), a Delaware statutory trust (“Trust”), was held on January 16, 2024. The Meeting was held for the following purpose:
(1) | Elect 14 trustees to the Board of Trustees of the Trust, each of whom will serve until his or her successor is duly elected and qualified. |
The results of the voting on the above matter were as follows:
Matter | Votes For | Votes Against/Withheld | ||||||||
(1)* | Beth Ann Brown | 3,109,848,785.61 | 65,706,470.15 | |||||||
Carol Deckbar | 3,109,186,378.07 | 66,368,877.70 | ||||||||
Cynthia Hostetler | 3,108,148,647.37 | 67,406,608.40 | ||||||||
Dr. Eli Jones | 3,106,962,123.35 | 68,593,132.42 | ||||||||
Elizabeth Krentzman | 3,109,153,762.02 | 66,401,493.75 | ||||||||
Jeffrey H. Kupor | 3,109,094,174.85 | 66,461,080.92 | ||||||||
Anthony J. LaCava, Jr. | 3,107,453,603.09 | 68,101,652.67 | ||||||||
James Liddy | 3,108,418,832.17 | 67,136,423.60 | ||||||||
Dr. Prema Mathai-Davis | 3,100,922,564.57 | 74,632,691.20 | ||||||||
Joel W. Motley | 3,104,496,522.60 | 71,058,733.17 | ||||||||
Teresa M. Ressel | 3,109,248,693.76 | 66,306,562.01 | ||||||||
Douglas Sharp | 3,108,681,578.09 | 66,873,677.67 | ||||||||
Robert C. Troccoli | 3,104,038,320.81 | 71,516,934.96 | ||||||||
Daniel S. Vandivort | 3,106,373,978.14 | 69,181,277.62 |
* Proposal 1 required approval by a combined vote of all the portfolios of AIM Counselor Series Trust (Invesco Counselor Series Trust).
16 | Invesco SMA Municipal Bond Fund |
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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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT filings on the SEC website, 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/corporate/about-us/esg. 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. This 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 number(s): 811-09913 and 333-36074 | Invesco Distributors, Inc. | SMAMB-SAR-1 |
(b) Not applicable.
ITEM 2. | CODE OF ETHICS. |
Not applicable for a semi-annual report.
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable.
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable.
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
ITEM 6. | SCHEDULE OF INVESTMENTS. |
Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
None.
ITEM 11. | CONTROLS AND PROCEDURES. |
(a) | As of April 16, 2024, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the PEO and PFO, to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of April 16, 2024, the Registrant’s disclosure controls and procedures were reasonably designed to ensure: (1) that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure. |
(b) | There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
ITEM 12. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 13. | RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION. |
Not applicable.
ITEM 14. | EXHIBITS. |
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/ Glenn Brightman | |
Glenn Brightman | ||
Principal Executive Officer | ||
Date: | May 2, 2024 |
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/ Glenn Brightman | |
Glenn Brightman | ||
Principal Executive Officer | ||
Date: | May 2, 2024 |
By: | /s/ Adrien Deberghes | |
Adrien Deberghes | ||
Principal Financial Officer | ||
Date: | May 2, 2024 |