ITEM 1. | REPORTS TO STOCKHOLDERS. |
Semiannual Report to Shareholders | August 31, 2023 |
Performance summary | ||||||
Fund vs. Indexes Cumulative total returns, 2/28/23 to 8/31/23, 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 | 4.09% | |||||
Class AX Shares | 4.22 | |||||
Class Y Shares | 4.31 | |||||
Class R6 Shares | 4.27 | |||||
Credit Suisse Leveraged Loan Index▼ (Style-Specific Index) | 5.56 | |||||
Source(s): ▼Bloomberg LP | ||||||
The Credit Suisse Leveraged Loan Index represents tradable, senior-secured, US-dollar- denominated, non-investment-grade loans. | ||||||
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. |
2 | Invesco Dynamic Credit Opportunity Fund |
Average Annual Total Returns | ||||
As of 8/31/23, including maximum applicable sales charges | ||||
Class A Shares | ||||
10 Years | 5.76% | |||
5 Years | 4.35 | |||
1 Year | 4.57 | |||
Class AX Shares | ||||
Inception (6/26/07) | 5.30% | |||
10 Years | 6.36 | |||
5 Years | 5.28 | |||
1 Year | 8.25 | |||
Class Y Shares | ||||
10 Years | 6.37% | |||
5 Years | 5.30 | |||
1 Year | 8.35 | |||
Class R6 Shares | ||||
10 Years | 6.39% | |||
5 Years | 5.33 | |||
1 Year | 8.37 |
3 | Invesco Dynamic Credit Opportunity Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Variable Rate Senior Loan Interests–90.35%(b)(c)(d) | ||||||||||||||||
Aerospace & Defense–7.14% | ||||||||||||||||
ADB Safegate (ADBAS/CEP IV) (Luxembourg), Term Loan B (3 mo. EURIBOR + 4.75%) | 8.21 | % | 10/03/2026 | EUR | 4,000 | $ | 4,016,434 | |||||||||
FDH Group Acquisition, Inc., Term Loan A (3 mo. Term SOFR + 7.00%)(e)(f) | 12.39 | % | 10/01/2025 | $ 22,303 | 21,901,901 | |||||||||||
NAC Aviation 8 Ltd. (Ireland) | ||||||||||||||||
Revolver Loan(f)(g) | 0.00 | % | 12/31/2026 | 1,642 | 1,642,458 | |||||||||||
Term Loan (1 mo. USD LIBOR + 4.00%)(f) | 9.43 | % | 12/31/2026 | 1,830 | 0 | |||||||||||
Term Loan (1 mo. Term SOFR + 4.00%)(f) | 9.43 | % | 12/31/2026 | 1,870 | 0 | |||||||||||
27,560,793 | ||||||||||||||||
Automotive–8.26% | ||||||||||||||||
Constellation Auto (CONSTE/BCA) (United Kingdom), Second Lien Term Loan B-1 (6 mo. SONIA + 7.50%) | 12.68 | % | 07/27/2029 | GBP | 4,669 | 4,075,530 | ||||||||||
First Brands Group Intermediate LLC, Term Loan B (1 mo. Term SOFR + 5.00%) | 10.88 | % | 03/30/2027 | 592 | 585,169 | |||||||||||
Muth Mirror Systems LLC | ||||||||||||||||
Revolver Loan (3 mo. SOFR + 6.75%)(e)(f) | 12.14 | % | 04/23/2025 | 1,677 | 1,534,638 | |||||||||||
Term Loan (3 mo. Term SOFR + 6.75%)(e)(f) | 12.42 | % | 04/23/2025 | 18,709 | 17,118,883 | |||||||||||
Transtar Industries, Inc., Term Loan A (3 mo. Term SOFR + 7.25%)(e)(f) | 12.82 | % | 01/22/2027 | 8,566 | 8,549,016 | |||||||||||
31,863,236 | ||||||||||||||||
Beverage & Tobacco–0.86% | ||||||||||||||||
Al Aqua Merger Sub, Inc., Term Loan B (1 mo. Term SOFR + 3.75%) | 9.06 | % | 07/31/2028 | 2,222 | 2,143,211 | |||||||||||
City Brewing Co. LLC, Term Loan B (3 mo. Term SOFR + 3.50%) | 9.07 | % | 03/31/2028 | 1,809 | 1,193,823 | |||||||||||
3,337,034 | ||||||||||||||||
Building & Development–0.92% | ||||||||||||||||
Corialis (United Kingdom), Term Loan B (1 mo. SONIA + 4.40%) | 9.91 | % | 07/06/2028 | GBP | 677 | 783,332 | ||||||||||
Empire Today LLC, Term Loan B (1 mo. USD LIBOR + 5.00%) | 10.43 | % | 04/01/2028 | 533 | 439,667 | |||||||||||
LBM Holdings LLC, First Lien Term Loan (1 mo. Term SOFR + 3.75%) | 9.18 | % | 12/17/2027 | 5 | 5,018 | |||||||||||
LHS Borrow LLC (Leaf Home Solutions), Term Loan (1 mo. Term SOFR + 4.75%) | 10.18 | % | 02/16/2029 | 1,693 | 1,503,543 | |||||||||||
Mayfair Mall LLC, Term Loan (1 mo. Term SOFR + 3.25%)(f) | 8.68 | % | 04/20/2024 | 912 | 829,766 | |||||||||||
3,561,326 | ||||||||||||||||
Business Equipment & Services–14.45% | ||||||||||||||||
Allied Universal Holdco LLC (USAGM Holdco LLC/UNSEAM) | ||||||||||||||||
Incremental Term Loan(h) | – | 05/11/2028 | 1,685 | 1,672,209 | ||||||||||||
Term Loan (3 mo. EURIBOR + 3.75%) | 7.38 | % | 05/12/2028 | EUR | 95 | 99,659 | ||||||||||
Checkout Holding Corp., Term Loan (1 mo. Term SOFR + 9.50%) | 12.87 | % | 05/10/2027 | 225 | 136,211 | |||||||||||
CRCI Longhorn Holdings, Inc., Second Lien Term Loan (1 mo. USD LIBOR + 7.25%) | 12.68 | % | 08/08/2026 | 86 | 81,817 | |||||||||||
CV Intermediate Holdco Corp. (Class Valuation) | ||||||||||||||||
Delayed Draw Term Loan (3 mo. Term SOFR + 6.25%)(e)(f) | 1.00 | % | 03/31/2026 | 8,084 | 7,664,055 | |||||||||||
First Lien Term Loan (3 mo. Term SOFR + 6.25%)(e)(f) | 11.77 | % | 03/31/2026 | 8,325 | 7,892,008 | |||||||||||
Revolver Loan (3 mo. Term SOFR+ 6.25%)(e)(f) | 11.76 | % | 03/31/2026 | 726 | 687,757 | |||||||||||
Revolver Loan(e)(f)(g) | 0.00 | % | 03/31/2026 | 536 | 508,342 | |||||||||||
Dun & Bradstreet Corp. (The) | ||||||||||||||||
Revolver Loan(f)(h) | – | 09/11/2025 | 561 | 557,066 | ||||||||||||
Revolver Loan(f)(g) | 0.00 | % | 09/11/2025 | 3,253 | 3,230,982 | |||||||||||
Lamark Media Group LLC | ||||||||||||||||
Delayed Draw Term Loan (3 mo. Term SOFR + 5.75%)(e)(f) | 10.71 | % | 10/14/2027 | 1,520 | 1,495,971 | |||||||||||
Revolver Loan(e)(f)(h) | – | 10/14/2027 | 255 | 250,581 | ||||||||||||
Revolver Loan(e)(f)(g) | 0.00 | % | 10/14/2027 | 764 | 751,744 | |||||||||||
Term Loan (3 mo. SOFR + 5.75%)(e)(f) | 10.71 | % | 10/14/2027 | 7,023 | 6,911,034 | |||||||||||
Monitronics International, Inc., Term Loan (3 mo. Term SOFR + 7.50%) | 13.00 | % | 06/30/2028 | 6,088 | 6,170,617 |
4 | Invesco Dynamic Credit Opportunity Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Business Equipment & Services–(continued) | ||||||||||||||||
NAS LLC (d.b.a. Nationwide Marketing Group) | ||||||||||||||||
First Lien Term Loan (3 mo. Term SOFR + 6.50%)(e)(f) | 11.89 | % | 06/03/2024 | $ 2,758 | $ | 2,730,568 | ||||||||||
Revolver Loan (3 mo. Term SOFR + 6.50%)(e)(f) | 0.50 | % | 06/03/2024 | 184 | 182,064 | |||||||||||
Revolver Loan(e)(f)(g) | 0.00 | % | 06/03/2024 | 736 | 728,257 | |||||||||||
Term Loan (3 mo. Term SOFR + 6.50%)(e)(f) | 11.89 | % | 06/03/2024 | 8,807 | 8,718,831 | |||||||||||
Term Loan (3 mo. SOFR + 6.50%)(e)(f) | 11.89 | % | 06/03/2024 | 1,673 | 1,656,337 | |||||||||||
Protect America, Revolver Loan(f)(h) | – | 09/01/2024 | 1,049 | 975,451 | ||||||||||||
Solera (Polaris Newco LLC), Term Loan B (1 mo. SONIA + 5.25%) | 10.44 | % | 06/05/2028 | GBP | 1,372 | 1,565,813 | ||||||||||
Spin Holdco, Inc., Term Loan (3 mo. Term SOFR + 4.00%) | 9.23 | % | 03/04/2028 | 336 | 283,269 | |||||||||||
UnitedLex Corp., Term Loan (3 mo. Term SOFR + 5.75%)(f) | 11.28 | % | 03/20/2027 | 935 | 817,852 | |||||||||||
55,768,495 | ||||||||||||||||
Cable & Satellite Television–6.36% | ||||||||||||||||
Altice Financing S.A. (Alt-Intl) (Luxembourg), Term Loan B (3 mo. EURIBOR + 5.00%) | 8.66 | % | 10/31/2027 | EUR | 1,998 | 2,104,611 | ||||||||||
CSC Holdings LLC, Term Loan B (1 mo. Term SOFR + 4.50%) | 9.81 | % | 01/15/2028 | 1 | 255 | |||||||||||
Lightning Finco Ltd. (LiveU) (United Kingdom) | ||||||||||||||||
Term Loan B-1 (3 mo. Term SOFR + 5.75%)(e)(f) | 11.18 | % | 08/31/2028 | 18,375 | 17,548,264 | |||||||||||
Term Loan B-2 (3 mo. USD LIBOR + 5.50%)(e)(f) | 10.98 | % | 08/31/2028 | 2,227 | 2,153,790 | |||||||||||
SFR-Numericable (YPSO, Alt-Fr) (France), Term Loan B (3 mo. EURIBOR + 5.50%) | 9.16 | % | 08/31/2028 | EUR | 2,993 | 2,735,710 | ||||||||||
24,542,630 | ||||||||||||||||
Chemicals & Plastics–1.98% | ||||||||||||||||
Cyanco Intermediate 2 Corp., Term Loan B (1 mo. Term SOFR + 4.75%) | 10.08 | % | 07/07/2028 | 283 | 284,187 | |||||||||||
Flint Group (ColourOz Inv) (Germany) | ||||||||||||||||
PIK Second Lien Term Loan B-2, 5.75% PIK Rate, 9.52% Cash Rate(i) | 5.75 | % | 09/21/2024 | 32 | 9,653 | |||||||||||
Term Loan(h) | – | 07/24/2026 | 4 | 3,210 | ||||||||||||
Vertellus | ||||||||||||||||
Revolver Loan (1 mo. Term SOFR + 5.75%)(e)(f) | 11.16 | % | 12/22/2025 | 286 | 277,613 | |||||||||||
Revolver Loan(e)(f)(g) | 0.00 | % | 12/22/2025 | 410 | 396,970 | |||||||||||
Term Loan (6 mo. Term SOFR + 5.75%)(e)(f) | 11.03 | % | 12/22/2027 | 6,879 | 6,665,291 | |||||||||||
7,636,924 | ||||||||||||||||
Conglomerates–0.14% | ||||||||||||||||
Safe Fleet Holdings LLC | ||||||||||||||||
First Lien Incremental Term Loan (1 mo. Term SOFR + 5.00%)(f) | 10.42 | % | 02/23/2029 | 244 | 245,403 | |||||||||||
Second Lien Term Loan (1 mo. Term SOFR + 6.75%) | 12.18 | % | 02/02/2026 | 298 | 284,535 | |||||||||||
529,938 | ||||||||||||||||
Containers & Glass Products–6.69% | ||||||||||||||||
Keg Logistics LLC | ||||||||||||||||
Revolver Loan (3 mo. Term SOFR + 6.00%)(e)(f) | 11.53 | % | 11/23/2027 | 1,366 | 1,304,770 | |||||||||||
Revolver Loan(e)(f)(g) | 0.00 | % | 11/23/2027 | 496 | 473,413 | |||||||||||
Term Loan A (1 mo. Term SOFR + 6.00%)(e)(f) | 11.53 | % | 11/16/2027 | 21,140 | 20,188,475 | |||||||||||
Keter Group B.V. (Netherlands), Term Loan B-1 (3 mo. EURIBOR + 4.25%) | 7.96 | % | 10/31/2023 | EUR | 3,763 | 3,800,808 | ||||||||||
Mold-Rite Plastics LLC (Valcour Packaging LLC), Second Lien Term Loan (6 mo. USD LIBOR + 7.00%) | 12.65 | % | 10/04/2029 | 123 | 69,380 | |||||||||||
25,836,846 | ||||||||||||||||
Ecological Services & Equipment–0.25% | ||||||||||||||||
TruGreen L.P., Second Lien Term Loan (1 mo. USD LIBOR + 8.76%) | 14.13 | % | 11/02/2028 | 1,509 | 948,288 | |||||||||||
Electronics & Electrical–4.86% | ||||||||||||||||
Boxer Parent Co., Inc., Term Loan B (1 mo. EURIBOR + 4.00%) | 7.63 | % | 10/02/2025 | EUR | 131 | 141,773 | ||||||||||
GoTo Group, Inc. (LogMeIn), First Lien Term Loan (1 mo. USD LIBOR + 4.75%) | 10.27 | % | 08/31/2027 | 2,970 | 1,929,624 | |||||||||||
Idemia (Oberthur Tech/Morpho/OBETEC) (France), Term Loan B (3 mo. EURIBOR + 4.75%) | 8.32 | % | 09/30/2028 | EUR | 572 | 620,195 | ||||||||||
Imperva, Inc., Second Lien Term Loan (3 mo. USD LIBOR + 7.75%) | 13.39 | % | 01/11/2027 | 602 | 605,479 | |||||||||||
Inetum (Granite Fin Bidco SAS) (France), Term Loan B (3 mo. EURIBOR + 5.00%) | 8.82 | % | 10/17/2028 | EUR | 306 | 332,639 | ||||||||||
Infinite Electronics, Second Lien Term Loan (3 mo. Term SOFR + 7.00%) | 12.50 | % | 03/02/2029 | 473 | 412,718 |
5 | Invesco Dynamic Credit Opportunity Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Electronics & Electrical–(continued) | ||||||||||||||||
Learning Pool (Brook Bidco Ltd.) (United Kingdom) | ||||||||||||||||
Term Loan (3 mo. SONIA + 6.87%)(f) | 11.80 | % | 08/17/2028 | GBP | 537 | $ | 667,526 | |||||||||
Term Loan 2 (3 mo. Term SOFR + 7.01%)(f) | 12.06 | % | 08/17/2028 | $ 712 | 683,221 | |||||||||||
Mavenir Systems, Inc., Term Loan B (3 mo. USD LIBOR + 4.75%) | 10.39 | % | 08/13/2028 | 1,720 | 1,328,535 | |||||||||||
Natel Engineering Co., Inc., Term Loan (3 mo. EURIBOR + 6.00%) | 11.68 | % | 04/29/2026 | 3,465 | 2,689,833 | |||||||||||
Native Instruments (Music Creation Group GMBH/APTUS) (Germany), Term Loan (3 mo. EURIBOR + 6.00%)(f) | 9.49 | % | 03/03/2028 | EUR | 1,267 | 1,263,602 | ||||||||||
Riverbed Technology, Inc., Class B (3 mo. Term SOFR + 6.25%) | 9.74 | % | 07/01/2028 | 1,535 | 931,362 | |||||||||||
Sandvine Corp., Second Lien Term Loan (3 mo. Term SOFR + 6.25%)(f) | 13.43 | % | 11/02/2026 | 322 | 238,047 | |||||||||||
SonicWall U.S. Holdings, Inc. | ||||||||||||||||
First Lien Term Loan(h) | – | 05/16/2025 | 1,077 | 1,063,728 | ||||||||||||
Term Loan B(h) | – | 05/16/2028 | 1,077 | 1,063,728 | ||||||||||||
Utimaco (Germany) | ||||||||||||||||
Term Loan B-1 (3 mo. EURIBOR + 6.25%)(f) | 10.03 | % | 05/31/2029 | EUR | 2,932 | 3,017,018 | ||||||||||
Term Loan B-2 (3 mo. Term SOFR + 6.25%)(f) | 11.81 | % | 05/31/2029 | 1,646 | 1,545,109 | |||||||||||
Veritas US, Inc., Term Loan B (3 mo. USD LIBOR + 5.00%) | 10.45 | % | 09/01/2025 | 281 | 238,520 | |||||||||||
18,772,657 | ||||||||||||||||
Food Products–8.39% | ||||||||||||||||
Biscuit Hld S.A.S.U. (BISPOU/Cookie Acq) (France), First Lien Term Loan (6 mo. EURIBOR + 4.00%) | 7.27 | % | 02/15/2027 | EUR | 7,013 | 6,469,403 | ||||||||||
BrightPet (AMCP Pet Holdings, Inc.) | ||||||||||||||||
Incremental Term Loan B (3 mo. Term SOFR + 6.25%)(e)(f) | 13.14 | % | 10/05/2026 | 4,217 | 4,022,886 | |||||||||||
Revolver Loan(e)(f)(h) | – | 10/05/2026 | 550 | 524,865 | ||||||||||||
Revolver Loan(e)(f)(g) | 0.00 | % | 10/05/2026 | 916 | 873,667 | |||||||||||
Term Loan (3 mo. Term SOFR + 7.00%)(e)(f) | 13.14 | % | 10/05/2026 | 4,102 | 3,912,941 | |||||||||||
Florida Food Products LLC, Second Lien Term Loan (1 mo. USD LIBOR + 8.00%)(f) | 13.45 | % | 10/08/2029 | 1,028 | 847,861 | |||||||||||
H-Food Holdings LLC | ||||||||||||||||
Incremental Term Loan B-3 (1 mo. USD LIBOR + 5.00%) | 10.58 | % | 05/23/2025 | 155 | 141,902 | |||||||||||
Term Loan (1 mo. USD LIBOR + 3.69%) | 9.27 | % | 05/23/2025 | 19 | 17,151 | |||||||||||
Shearer’s Foods LLC, Second Lien Term Loan (1 mo. USD LIBOR + 7.75%) | 13.20 | % | 09/22/2028 | 161 | 147,451 | |||||||||||
Sigma Bidco (Netherlands), Term Loan B (1 mo. Term SOFR + 4.75%) | 8.21 | % | 01/02/2028 | 155 | 152,023 | |||||||||||
Teasdale Foods, Inc., Term Loan (3 mo. Term SOFR + 6.25%)(e)(f) | 11.84 | % | 12/18/2025 | 15,996 | 14,172,990 | |||||||||||
Valeo Foods (Jersey) Ltd. (Ireland), Term Loan B (6 mo. EURIBOR + 4.00%) | 7.24 | % | 09/29/2028 | EUR | 1,162 | 1,105,923 | ||||||||||
32,389,063 | ||||||||||||||||
Food Service–1.83% | ||||||||||||||||
Areas (Telfer Inv/Financiere Pax), Term Loan B (6 mo. EURIBOR + 4.75%) | 8.49 | % | 07/01/2026 | EUR | 6,761 | 7,061,942 | ||||||||||
Forest Products–0.25% | ||||||||||||||||
NewLife Forest Restoration LLC, Term Loan (f)(h) | – | 11/30/2023 | 956 | 955,875 | ||||||||||||
Health Care–8.20% | ||||||||||||||||
Acacium (Impala Bidco Ltd./ICS US, Inc.) (United Kingdom), Incremental Term Loan B (1 mo. Term SOFR + 5.25%)(f) | 9.90 | % | 06/08/2028 | 955 | 905,064 | |||||||||||
Inovie Group Bidco (Labosud) (France), Term Loan B(h) | – | 03/03/2028 | EUR | 2,000 | 2,142,362 | |||||||||||
MB2 Dental Solutions LLC | ||||||||||||||||
Delayed Draw Term Loan (1 mo. Term SOFR + 6.00%)(e)(f) | 11.43 | % | 01/29/2027 | 3,103 | 3,041,286 | |||||||||||
Delayed Draw Term Loan (1 mo. Term SOFR + 6.00%)(e)(f) | 11.43 | % | 01/29/2027 | 8,613 | 8,440,186 | |||||||||||
Term Loan (1 mo. Term SOFR + 6.00%)(e)(f) | 11.43 | % | 01/29/2027 | 8,629 | 8,456,340 | |||||||||||
MedAssets Software Intermediate Holdings, Inc. (nThrive TSG), Second Lien Term Loan (1 mo. Term SOFR + 6.75%) | 12.58 | % | 12/17/2029 | 638 | 403,596 | |||||||||||
SDB Holdco LLC (Specialty Dental Brands) | ||||||||||||||||
Delayed Draw Term Loan (1 mo. Term SOFR + 7.00%)(e)(f) | 12.41 | % | 03/17/2027 | 3,126 | 2,991,945 | |||||||||||
Term Loan (1 mo. Term SOFR + 7.00%)(e)(f) | 12.42 | % | 03/09/2027 | 4,826 | 4,617,996 | |||||||||||
Women’s Care Holdings, Inc. LLC, Second Lien Term Loan (1 mo. USD LIBOR + 8.25%) | 13.80 | % | 01/15/2029 | 431 | 375,176 | |||||||||||
Zentiva (AI Sirona Lux Acq) (Czech Republic), Term Loan B (3 mo. EURIBOR + 5.00%) | 8.63 | % | 09/30/2028 | EUR | 233 | 253,881 | ||||||||||
31,627,832 |
6 | Invesco Dynamic Credit Opportunity Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Home Furnishings–1.24% | ||||||||||||||||
Hilding Anders AB (Sweden) | ||||||||||||||||
PIK Term Loan; 12.00% PIK Rate, 2.84% Cash Rate(f)(i) | 12.00 | % | 12/31/2024 | EUR | 38 | $ | 0 | |||||||||
Term Loan(f)(h) | – | 12/31/2024 | EUR | 5,480 | 0 | |||||||||||
Term Loan (3 mo. EURIBOR + 5.00%) | 8.65 | % | 02/28/2026 | EUR | 5,216 | 2,579,094 | ||||||||||
Term Loan (6 mo. EURIBOR + 10.00%)(f) | 13.62 | % | 12/31/2026 | EUR | 399 | 422,016 | ||||||||||
Term Loan(f)(h) | – | 02/26/2027 | EUR | 4,834 | 0 | |||||||||||
Serta Simmons Bedding LLC, Term Loan (1 mo. Term SOFR + 7.50%) | 12.69 | % | 06/29/2028 | $ 1,701 | 1,705,920 | |||||||||||
Weber-Stephen Products LLC, Incremental Term Loan B (1 mo. Term SOFR + 4.25%) | 9.68 | % | 10/30/2027 | 73 | 65,888 | |||||||||||
4,772,918 | ||||||||||||||||
Industrial Equipment–2.31% | ||||||||||||||||
Arconic Rolled Products Corp., Term Loan B (1 mo. Term SOFR + 4.50%) | 9.88 | % | 07/26/2030 | 714 | 715,283 | |||||||||||
Deliver Buyer, Inc. (MHS Holdings), Term Loan B (3 mo. Term SOFR + 5.50%) | 10.74 | % | 06/08/2029 | 1,065 | 927,537 | |||||||||||
Kantar (Summer BC Bidco) (United Kingdom) | ||||||||||||||||
Revolver Loan (1 mo. USD LIBOR + 3.00%)(f) | 8.46 | % | 06/04/2026 | 977 | 883,778 | |||||||||||
Revolver Loan(f)(g) | 0.00 | % | 06/04/2026 | 1,189 | 1,076,206 | |||||||||||
Term Loan B (3 mo. USD LIBOR + 5.00%) | 10.50 | % | 12/04/2026 | 1,362 | 1,312,117 | |||||||||||
New VAC US LLC, Term Loan B (3 mo. USD LIBOR + 4.00%)(f) | 9.73 | % | 03/08/2025 | 1,245 | 1,220,534 | |||||||||||
Robertshaw US Holding Corp. | ||||||||||||||||
First Lien Term Loan (3 mo. Term SOFR + 5.50%)(f) | 10.84 | % | 02/28/2027 | 612 | 443,333 | |||||||||||
First Lien Term Loan (3 mo. Term SOFR + 7.00%) | 12.34 | % | 02/28/2027 | 457 | 403,183 | |||||||||||
First Lien Term Loan (3 mo. Term SOFR + 3.00%)(f) | 8.34 | % | 02/28/2027 | 243 | 245,779 | |||||||||||
Tank Holding Corp. | ||||||||||||||||
Revolver Loan (1 mo. Term SOFR + 5.75%)(f) | 11.15 | % | 03/31/2028 | 85 | 82,755 | |||||||||||
Revolver Loan(f)(g) | 0.00 | % | 03/31/2028 | 91 | 88,409 | |||||||||||
Term Loan (1 mo. Term SOFR + 6.00%) | 11.18 | % | 03/31/2028 | 1,325 | 1,288,369 | |||||||||||
Victory Buyer LLC (Vantage Elevator), Second Lien Term Loan (3 mo. Term SOFR + 7.00%)(f) | 12.51 | % | 11/19/2029 | 258 | 222,915 | |||||||||||
8,910,198 | ||||||||||||||||
Leisure Goods, Activities & Movies–6.32% | ||||||||||||||||
Crown Finance US, Inc. | ||||||||||||||||
First Lien Term Loan (3 mo. EURIBOR + 2.63%) | 2.63 | % | 02/28/2025 | EUR | 1 | 37 | ||||||||||
Term Loan (1 mo. Term SOFR + 8.50%) | 14.38 | % | 07/31/2028 | 2,508 | 2,530,333 | |||||||||||
Parques Reunidos (Piolin Bidco s.a.u) (Spain) | ||||||||||||||||
Revolver Loan (1 mo. EURIBOR + 3.50%)(f) | 7.13 | % | 03/16/2026 | EUR | 574 | 613,938 | ||||||||||
Revolver Loan(f)(g) | 0.00 | % | 03/16/2026 | EUR | 1,885 | 2,017,254 | ||||||||||
Royal Caribbean Cruises Ltd. | ||||||||||||||||
Revolver Loan(f)(g) | 0.00 | % | 04/05/2024 | 3,562 | 3,455,411 | |||||||||||
Revolver Loan(f)(h) | – | 04/12/2024 | 1,213 | 1,187,269 | ||||||||||||
Scenic (Columbus Capital B.V.) (Australia), Term Loan (3 mo. EURIBOR + 3.75%) | 7.35 | % | 02/27/2027 | EUR | 1,200 | 1,055,063 | ||||||||||
USF S&H Holdco LLC | ||||||||||||||||
Term Loan A (3 mo. USD LIBOR + 8.00%)(e)(f) | 8.00 | % | 06/30/2025 | 808 | 808,166 | |||||||||||
Term Loan A(e)(f)(g) | 0.00 | % | 06/30/2025 | 1,028 | 1,028,329 | |||||||||||
Term Loan B (3 mo. Term SOFR + 4.75%)(e)(f) | 10.14 | % | 06/30/2025 | 10,518 | 10,517,378 | |||||||||||
Vue International Bidco PLC (United Kingdom), Term Loan (6 mo. EURIBOR + 8.00%) | 11.36 | % | 12/31/2027 | EUR | 2,111 | 1,195,946 | ||||||||||
24,409,124 | ||||||||||||||||
Lodging & Casinos–2.31% | ||||||||||||||||
HotelBeds (United Kingdom), Term Loan D (6 mo. EURIBOR + 5.50%) | 8.84 | % | 09/12/2027 | EUR | 8,274 | 8,917,609 | ||||||||||
Nonferrous Metals & Minerals–0.21% | ||||||||||||||||
Form Technologies LLC, First Lien Term Loan (3 mo. Term SOFR + 9.00%) | 14.52 | % | 10/22/2025 | 1,052 | 810,149 | |||||||||||
Oil & Gas–2.87% | ||||||||||||||||
McDermott International Ltd. | ||||||||||||||||
LOC(f)(g) | 0.00 | % | 06/28/2024 | 4,083 | 3,042,053 | |||||||||||
LOC (3 mo. Term SOFR + 4.00%)(f) | 5.48 | % | 06/30/2024 | 1,801 | 1,260,900 | |||||||||||
PIK Second Lien Term Loan, 3.00% PIK Rate, 6.45% Cash Rate(i) | 3.00 | % | 09/25/2025 | 968 | 517,679 | |||||||||||
Term Loan (1 mo. Term SOFR + 3.00%)(f) | 8.45 | % | 06/30/2024 | 180 | 130,614 | |||||||||||
Petroleum GEO-Services ASA (Norway), Term Loan (1 mo. USD LIBOR + 7.00%) | 12.54 | % | 03/19/2024 | 578 | 578,420 |
7 | Invesco Dynamic Credit Opportunity Fund |
Interest Rate | Maturity Date | Principal Amount (000)(a) | Value | |||||||||||||
Oil & Gas–(continued) | ||||||||||||||||
QuarterNorth Energy, Inc., Second Lien Term Loan (1 mo. Term SOFR + 8.00%) (Acquired 08/03/2021; Cost $5,480,356)(j) | 13.45 | % | 08/27/2026 | $ 5,552 | $ | 5,540,066 | ||||||||||
11,069,732 | ||||||||||||||||
Publishing–1.12% | ||||||||||||||||
Cengage Learning, Inc., Term Loan B (3 mo. Term SOFR + 4.75%) | 10.32 | % | 06/29/2026 | 2,328 | 2,326,395 | |||||||||||
Harbor Purchaser, Inc. (Houghton Mifflin Harcourt), First Lien Term Loan B (1 mo. Term SOFR + 5.25%) | 10.68 | % | 04/09/2029 | 2,132 | 1,977,611 | |||||||||||
4,304,006 | ||||||||||||||||
Radio & Television–0.02% | ||||||||||||||||
Diamond Sports Holdings LLC, Second Lien Term Loan (k)(l) | 0.00 | % | 08/24/2026 | 2,582 | 72,394 | |||||||||||
Nexstar Broadcasting, Inc., Term Loan B-4 (1 mo. Term SOFR + 2.50%) | 7.95 | % | 09/18/2026 | 1 | 319 | |||||||||||
72,713 | ||||||||||||||||
Retailers (except Food & Drug)–1.08% | ||||||||||||||||
Douglas (Kirk Beauty GmbH) (Germany) | ||||||||||||||||
Term Loan B-1 (6 mo. EURIBOR + 5.25%) | 9.43 | % | 04/08/2026 | EUR | 849 | 917,197 | ||||||||||
Term Loan B-2 (6 mo. EURIBOR + 5.25%) | 9.43 | % | 04/08/2026 | EUR | 489 | 528,608 | ||||||||||
Term Loan B-3 (6 mo. EURIBOR + 5.25%) | 9.43 | % | 04/08/2026 | EUR | 692 | 747,620 | ||||||||||
Term Loan B-4 (6 mo. EURIBOR + 5.25%) | 9.43 | % | 04/08/2026 | EUR | 1,499 | 1,618,960 | ||||||||||
Term Loan B-5 (6 mo. EURIBOR + 5.25%) | 9.43 | % | 04/08/2026 | EUR | 334 | 360,491 | ||||||||||
4,172,876 | ||||||||||||||||
Telecommunications–1.59% | ||||||||||||||||
Cincinnati Bell, Inc., Term Loan B-2 (1 mo. Term SOFR + 3.25%) | 8.68 | % | 11/22/2028 | 28 | 27,865 | |||||||||||
MLN US HoldCo LLC (dba Mitel) | ||||||||||||||||
Second Lien Term Loan (3 mo. Term SOFR + 6.70%) | 12.11 | % | 11/01/2027 | 3,739 | 1,364,701 | |||||||||||
Term Loan (3 mo. Term SOFR + 6.44%) | 11.85 | % | 11/01/2027 | 1,591 | 1,217,001 | |||||||||||
Third Lien Term Loan (3 mo. Term SOFR + 9.25%)(f) | 14.66 | % | 11/01/2027 | 1,875 | 374,901 | |||||||||||
Telesat LLC, Term Loan B-5 (1 mo. USD LIBOR + 2.75%) | 8.43 | % | 12/07/2026 | 1,740 | 1,257,393 | |||||||||||
U.S. TelePacific Corp. | ||||||||||||||||
First Lien Term Loan (3 mo. Term SOFR + 1.25%) | 6.57 | % | 05/02/2026 | 997 | 402,420 | |||||||||||
Third Lien Term Loan (3 mo. USD LIBOR + 0.00%)(f) | 0.00 | % | 05/02/2027 | 100 | 0 | |||||||||||
Zayo Group Holdings, Inc., Incremental Term Loan (1 mo. Term SOFR + 4.25%) | 9.66 | % | 03/09/2027 | 1,842 | 1,487,055 | |||||||||||
6,131,336 | ||||||||||||||||
Utilities–0.70% | ||||||||||||||||
Lightstone Holdco LLC | ||||||||||||||||
Term Loan B (1 mo. Term SOFR + 5.75%) | 11.08 | % | 02/01/2027 | 1,084 | 986,760 | |||||||||||
Term Loan C (1 mo. Term SOFR + 5.75%) | 11.08 | % | 02/01/2027 | 61 | 55,805 | |||||||||||
Nautilus Power LLC, Term Loan (1 mo. Term SOFR + 5.25%) | 10.75 | % | 11/16/2026 | 2,200 | 1,668,679 | |||||||||||
2,711,244 | ||||||||||||||||
Total Variable Rate Senior Loan Interests (Cost $380,704,436) | 348,674,784 | |||||||||||||||
Shares | ||||||||||||||||
Common Stocks & Other Equity Interests–16.29%(m) | ||||||||||||||||
Aerospace & Defense–0.31% | ||||||||||||||||
IAP Worldwide Services, Inc. (Acquired 07/18/2014-08/18/2014; Cost $239,759)(f)(j) | 221 | 1,204,607 | ||||||||||||||
NAC Aviation 8 Ltd.(f) | 51,776 | 0 | ||||||||||||||
1,204,607 | ||||||||||||||||
Automotive–0.00% | ||||||||||||||||
ThermaSys Corp. (Acquired 12/31/2018; Cost $687,748)(f)(j) | 980,474 | 0 | ||||||||||||||
Building & Development–0.00% | ||||||||||||||||
Haya (Holdco2 PLC/Real Estate SAU)(f) | 5,422 | 0 | ||||||||||||||
Lake at Las Vegas Joint Venture LLC, Class A (Acquired 07/15/2010; Cost $24,140,508)(f)(j) | 2,338 | 0 | ||||||||||||||
Lake at Las Vegas Joint Venture LLC, Class B(f) | 28 | 0 | ||||||||||||||
0 |
8 | Invesco Dynamic Credit Opportunity Fund |
Shares | Value | |||||||||
Business Equipment & Services–3.63% | ||||||||||
Monitronics International, Inc. (Acquired 06/30/2023; Cost $2,346,937)(f)(j) | 116,589 | $ 2,448,369 | ||||||||
My Alarm Center LLC, Class A (Acquired 03/09/2021-12/03/2021; Cost $6,303,839)(f)(j) | 47,742 | 11,563,263 | ||||||||
14,011,632 | ||||||||||
Containers & Glass Products–0.03% | ||||||||||
Libbey Glass LLC (Acquired 11/13/2020-02/10/2022; Cost $56,094)(j) | 13,797 | 108,651 | ||||||||
Drugs–0.00% | ||||||||||
Inotiv, Inc., Conv. | 4,854 | 18,154 | ||||||||
Electronics & Electrical–0.00% | ||||||||||
Riverbed Technology, Inc. (Acquired 07/03/2023; Cost $8,266)(f)(j) | 63,581 | 8,266 | ||||||||
Financial Intermediaries–0.04% | ||||||||||
RJO Holdings Corp.(f) | 2,144 | 107,203 | ||||||||
RJO Holdings Corp., Class A(f) | 1,142 | 57,114 | ||||||||
RJO Holdings Corp., Class B(f) | 3,334 | 33 | ||||||||
164,350 | ||||||||||
Home Furnishings–0.33% | ||||||||||
Serta Simmons Bedding LLC (Acquired 06/29/2023; Cost $12,650)(j) | 81,610 | 1,256,794 | ||||||||
Industrial Equipment–0.11% | ||||||||||
North American Lifting Holdings, Inc. | 62,889 | 440,223 | ||||||||
Leisure Goods, Activities & Movies–3.88% | ||||||||||
Crown Finance US, Inc. | 779 | 16,858 | ||||||||
Crown Finance US, Inc., Rts. | 115,725 | 2,506,199 | ||||||||
USF S&H Holdco LLC(e)(f) | 11,114 | 12,452,349 | ||||||||
Vue International Bidco PLC(f) | 2,084,496 | 0 | ||||||||
14,975,406 | ||||||||||
Oil & Gas–7.47% | ||||||||||
McDermott International Ltd.(f) | 190,859 | 29,011 | ||||||||
QuarterNorth Energy Holding, Inc. (Acquired 06/02/2021-10/29/2021; Cost $10,658,786)(f)(j) | 163,623 | 27,660,468 | ||||||||
QuarterNorth Energy Holding, Inc., Wts., expiring 08/27/2029(f) | 26,541 | 456,505 | ||||||||
QuarterNorth Energy Holding, Inc., Wts., expiring 08/27/2029 (Acquired 08/27/2021; Cost $306,696)(f)(j) | 51,116 | 23,002 | ||||||||
Samson Investment Co., Class A (Acquired 03/01/2017; Cost $2,932,743)(f)(j) | 163,748 | 147,373 | ||||||||
Southcross Energy Partners L.P. (Acquired 07/29/2014-10/29/2020; Cost $749,269)(j) | 72,413 | 1,014 | ||||||||
Tribune Resources LLC (Acquired 04/03/2018; Cost $1,915,487)(j) | 376,237 | 517,326 | ||||||||
28,834,699 | ||||||||||
Radio & Television–0.00% | ||||||||||
iHeartMedia, Inc., Class B(f)(n) | 42 | 168 | ||||||||
Retailers (except Food & Drug)–0.20% | ||||||||||
Claire’s Stores, Inc. (Acquired 10/12/2018; Cost $675,080)(j) | 420 | 148,750 | ||||||||
Toys ’R’ Us-Delaware, Inc.(f) | 14 | 34,372 | ||||||||
Vivarte S.A.S.(f) | 1,181,133 | 569,171 | ||||||||
752,293 | ||||||||||
Surface Transport–0.29% | ||||||||||
Commercial Barge Line Co. (Acquired 02/15/2018-02/06/2020; Cost $743,133)(f)(j) | 8,956 | 403,020 | ||||||||
Commercial Barge Line Co.(f) | 7,373 | 184,325 | ||||||||
Commercial Barge Line Co., Series A, Wts., expiring 08/18/2030 (Acquired 02/03/2023-08/18/2023; Cost $0)(f)(j) | 97,717 | 45,805 | ||||||||
Commercial Barge Line Co., Series B, Wts., expiring 04/30/2045 (Acquired 02/05/2020-05/17/2023; Cost $0)(f)(j) | 88,608 | 55,380 |
9 | Invesco Dynamic Credit Opportunity Fund |
Shares | �� | Value | ||||||||
Surface Transport–(continued) | ||||||||||
Commercial Barge Line Co., Wts., expiring 04/27/2045 (Acquired 02/15/2018-02/06/2020; Cost $781,183)(j) | 9,414 | $423,630 | ||||||||
1,112,160 | ||||||||||
Total Common Stocks & Other Equity Interests (Cost $76,602,124) | 62,887,403 | |||||||||
Interest Rate | Maturity Date | Principal Amount (000)(a) | ||||||||
Non-U.S. Dollar Denominated Bonds & Notes–8.26%(o) | ||||||||||
Automotive–0.28% | ||||||||||
Cabonline Group Holding AB (Sweden)(f)(p) | 14.00% | 10/31/2023 | SEK 1,022 | 87,727 | ||||||
Cabonline Group Holding AB (Sweden) (3 mo. STIBOR + 9.50%)(l)(p)(q) | 0.00% | 04/19/2026 | SEK 15,000 | 993,287 | ||||||
1,081,014 | ||||||||||
Building & Development–0.79% | ||||||||||
Haya Holdco 2 PLC (United Kingdom) (3 mo. EURIBOR + 9.00%)(p)(q) | 12.77% | 11/30/2025 | EUR 4,471 | 1,793,761 | ||||||
Ideal Standard International S.A. (Belgium)(p) | 6.38% | 07/30/2026 | EUR 1,828 | 1,233,915 | ||||||
3,027,676 | ||||||||||
Cable & Satellite Television–0.54% | ||||||||||
Altice Finco S.A. (Luxembourg)(p) | 4.75% | 01/15/2028 | EUR 2,932 | 2,092,006 | ||||||
Financial Intermediaries–5.05% | ||||||||||
AnaCap Financial Europe S.A. SICAV-RAIF (Italy) (3 mo. EURIBOR + 5.00%) (Acquired 01/31/2018-11/24/2021; Cost $10,689,712)(j)(p)(q) | 8.73% | 08/01/2024 | EUR 8,976 | 4,859,655 | ||||||
Garfunkelux Holdco 3 S.A. (Luxembourg) (3 mo. EURIBOR + 6.25%)(p)(q) | 9.98% | 05/01/2026 | EUR 4,278 | 3,753,619 | ||||||
Garfunkelux Holdco 3 S.A. (Luxembourg)(p) | 6.75% | 11/01/2025 | EUR 3,345 | 2,915,222 | ||||||
Kane Bidco Ltd. (United Kingdom)(p) | 6.50% | 02/15/2027 | GBP 989 | 1,154,809 | ||||||
Very Group Funding PLC (The) (United Kingdom)(p) | 6.50% | 08/01/2026 | GBP 5,493 | 5,549,427 | ||||||
Very Group Funding PLC (The) (United Kingdom)(p) | 6.50% | 08/01/2026 | GBP 1,250 | 1,262,841 | ||||||
19,495,573 | ||||||||||
Food Products–0.24% | ||||||||||
Sigma Holdco B.V. (Netherlands)(p) | 5.75% | 05/15/2026 | EUR 1,000 | 936,300 | ||||||
Retailers (except Food & Drug)–1.36% | ||||||||||
Kirk Beauty SUN GmbH 9.00% PIK Rate, 8.25% Cash Rate (Germany)(i)(p) | 9.00% | 10/01/2026 | EUR 5,209 | 5,236,198 | ||||||
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $46,181,080) | 31,868,767 | |||||||||
Asset-Backed Securities–2.67% | ||||||||||
Structured Products–2.67% | ||||||||||
Adagio V CLO DAC, Series V-X, Class ER (Ireland) (3 mo. EURIBOR + 5.15%) (o)(p)(q) | 8.81% | 10/15/2031 | EUR 263 | 242,932 | ||||||
Babson Euro CLO B.V., Series 2019-1A, Class ER (Ireland) (3 mo. EURIBOR + 7.21%)(o)(p)(q) | 10.87% | 04/15/2036 | EUR 1,750 | 1,695,385 | ||||||
Babson Euro CLO B.V., Series 2021-1A, Class E (Ireland) (3 mo. EURIBOR + 7.05%)(o)(p)(q) | 10.75% | 04/24/2034 | EUR 1,023 | 1,010,853 | ||||||
Empower CLO Ltd., Series 2023-2A, Class E (Cayman Islands) (3 mo. Term SOFR + 8.25%)(o)(p)(q) | 13.59% | 07/15/2036 | $ 2,000 | 2,000,928 | ||||||
Jubilee CLO DAC, Series 2018-21A, Class ER (Ireland) (3 mo. EURIBOR + 6.07%)(o)(p)(q) | 9.73% | 04/15/2035 | EUR 2,041 | 2,025,833 | ||||||
Madison Park Euro Funding XV DAC, Series 15A, Class ER (Ireland) (3 mo. EURIBOR + 7.29%)(o)(p)(q) | 10.95% | 07/15/2036 | EUR 3,215 | 3,321,106 | ||||||
Total Asset-Backed Securities (Cost $11,072,828) | 10,297,037 | |||||||||
Shares | ||||||||||
Preferred Stocks–1.58%(m) | ||||||||||
Financial Intermediaries–0.06% | ||||||||||
RJO Holdings Corp., Series A-2, Pfd.(f) | 649 | 236,849 | ||||||||
Oil & Gas–0.17% | ||||||||||
McDermott International Ltd., Pfd.(f) | 1,017 | 661,234 | ||||||||
Southcross Energy Partners L.P., Series A, Pfd. (Acquired 05/07/2019-05/09/2019; Cost $285,287)(f)(j) | 288,393 | 2,567 | ||||||||
663,801 |
10 | Invesco Dynamic Credit Opportunity Fund |
Shares | Value | |||||||||||
Surface Transport–1.35% | ||||||||||||
Commercial Barge Line Co., Series A, Pfd. (Acquired 02/15/2018-02/06/2020; Cost $1,463,899)(j) | 26,310 | $ | 618,285 | |||||||||
Commercial Barge Line Co., Series A, Pfd., Wts., expiring 04/27/2045 (Acquired 02/15/2018-02/06/2020; Cost $1,538,779)(j) | 27,657 | 649,939 | ||||||||||
Commercial Barge Line Co., Series B, Pfd. (Acquired 02/05/2020-10/27/2020; Cost $978,436)(j) | 42,058 | 2,313,190 | ||||||||||
Commercial Barge Line Co., Series B, Pfd., Wts., expiring 04/27/2045 (Acquired 02/05/2020-10/27/2020; Cost $687,140)(j) | 29,536 | 1,624,480 | ||||||||||
5,205,894 | ||||||||||||
Total Preferred Stocks (Cost $4,953,541) | 6,106,544 | |||||||||||
Interest Rate | Maturity Date | Principal Amount (000)(a) | ||||||||||
U.S. Dollar Denominated Bonds & Notes–1.25% | ||||||||||||
Aerospace & Defense–0.20% | ||||||||||||
Rand Parent LLC (p) | 8.50% | 02/15/2030 | $ | 820 | 781,781 | |||||||
Air Transport–0.03% | ||||||||||||
Mesa Airlines, Inc., Class B (Acquired 11/25/2015; Cost $138,629)(f)(j) | 5.75% | 07/15/2025 | 139 | 136,037 | ||||||||
Chemicals & Plastics–0.31% | ||||||||||||
Windsor Holdings III LLC (Acquired 06/27/2023-07/11/2023; Cost $1,159,114)(j)(p) | 8.50% | 06/15/2030 | 1,172 | 1,178,577 | ||||||||
Food Products–0.33% | ||||||||||||
Teasdale Foods, Inc. (e)(f) | 16.25% | 06/18/2026 | 2,331 | 1,270,516 | ||||||||
Radio & Television–0.01% | ||||||||||||
Diamond Sports Group LLC/Diamond Sports Finance Co. (k)(l)(p) | 0.00% | 08/15/2026 | 1,631 | 40,465 | ||||||||
Telecommunications–0.37% | ||||||||||||
Windstream Escrow LLC/Windstream Escrow Finance Corp. (p) | 7.75% | 08/15/2028 | 1,758 | 1,426,832 | ||||||||
Total U.S. Dollar Denominated Bonds & Notes (Cost $7,476,594) | 4,834,208 | |||||||||||
Municipal Obligations–0.84% | ||||||||||||
Arizona–0.84% | ||||||||||||
Arizona (State of) Industrial Development Authority (NewLife Forest Restoration LLC) (Green Bonds), Series 2022 A, RB (Acquired 02/22/2022-07/01/2023; Cost $3,546,024) (Cost $2,545,625)(j)(p) | 0.00% | 01/01/2028 | 3,813 | 3,231,149 | ||||||||
TOTAL INVESTMENTS IN SECURITIES–121.24% (Cost $529,536,228) | 467,899,892 | |||||||||||
BORROWINGS–(18.14)% | (70,000,000 | ) | ||||||||||
OTHER ASSETS LESS LIABILITIES–(3.10)% | (11,975,971 | ) | ||||||||||
NET ASSETS–100.00% | $ | 385,923,921 |
Investment Abbreviations: | ||
Conv. | – Convertible | |
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 | |
Rts. | – Rights | |
SEK | – Swedish Krona | |
SOFR | – Secured Overnight Financing Rate | |
SONIA | – Sterling Overnight Index Average | |
STIBOR | – Stockholm Interbank Offered Rate | |
USD | – U.S. Dollar | |
Wts. | – Warrants |
11 | Invesco Dynamic Credit Opportunity Fund |
(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) | Calculated as a percentage of net assets. Amounts in excess of 100% are due to the Fund’s use of leverage. |
(e) | Acquired through direct lending. Direct loans may be subject to liquidity and interest rate risk and certain direct loans may be deemed illiquid. |
(f) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(g) | 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 7. |
(h) | This variable rate interest will settle after August 31, 2023, at which time the interest rate will be determined. |
(i) | All or a portion of this security is Pay-in-Kind. Pay-in-Kind securities pay interest income in the form of securities. |
(j) | Restricted security. The aggregate value of these securities at August 31, 2023 was $66,169,663, which represented 17.15% of the Fund’s Net Assets. |
(k) | The borrower has filed for protection in federal bankruptcy court. |
(l) | Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The aggregate value of these securities at August 31, 2023 was $1,106,146, which represented less than 1% of the Fund’s Net Assets. |
(m) | Securities acquired through the restructuring of senior loans. |
(n) | Non-income producing security. |
(o) | Foreign denominated security. Principal amount is denominated in the currency indicated. |
(p) | 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 August 31, 2023 was $48,824,608, which represented 12.65% of the Fund’s Net Assets. |
(q) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on August 31, 2023. |
Change in | |||||||||||||||||||||||||||||||||||
Value | Purchases | Proceeds | Unrealized | Realized | Value | ||||||||||||||||||||||||||||||
February 28, 2023 | at Cost | from Sales | Appreciation | Gain | August 31, 2023 | Dividend Income | |||||||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | |||||||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $3,078,901 | $ | 36,998,573 | $ | (40,077,474 | ) | $ | - | $- | $ | - | $56,458 | |||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 2,052,601 | 24,665,715 | (26,718,316 | ) | - | - | - | 37,528 | |||||||||||||||||||||||||||
Total | $5,131,502 | $ | 61,664,288 | $ | (66,795,790 | ) | $ | - | $- | $ | - | $93,986 |
Open Forward Foreign Currency Contracts | ||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||
Settlement | Contract to | Appreciation | ||||||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||||
Currency Risk | ||||||||||||||||||||||
10/31/2023 | Barclays Bank PLC | EUR | 26,880,069 | USD | 29,299,249 | $ | 73,444 | |||||||||||||||
09/29/2023 | BNP Paribas S.A. | EUR | 26,310,428 | USD | 29,227,273 | 664,678 | ||||||||||||||||
09/29/2023 | BNP Paribas S.A. | GBP | 5,200,048 | USD | 6,666,956 | 78,794 | ||||||||||||||||
09/29/2023 | BNP Paribas S.A. | NOK | 1,711 | USD | 170 | 9 | ||||||||||||||||
09/29/2023 | BNP Paribas S.A. | SEK | 4,000,000 | USD | 374,355 | 8,576 | ||||||||||||||||
10/31/2023 | BNP Paribas S.A. | GBP | 4,260,092 | USD | 5,410,737 | 13,189 | ||||||||||||||||
10/31/2023 | Citibank N.A. | EUR | 26,478,874 | USD | 28,875,239 | 85,640 | ||||||||||||||||
09/29/2023 | Goldman Sachs & Co. International PLC | EUR | 766,912 | USD | 848,511 | 15,952 | ||||||||||||||||
09/29/2023 | J.P. Morgan Chase Bank, N.A. | EUR | 3,500,000 | USD | 3,869,303 | 69,704 | ||||||||||||||||
09/29/2023 | J.P. Morgan Chase Bank, N.A. | USD | 161 | NOK | 1,711 | 0 | ||||||||||||||||
09/29/2023 | Morgan Stanley and Co. International PLC | EUR | 26,978,768 | USD | 29,974,336 | 686,191 | ||||||||||||||||
09/29/2023 | Morgan Stanley and Co. International PLC | GBP | 5,122,435 | USD | 6,569,686 | 79,854 | ||||||||||||||||
09/29/2023 | Morgan Stanley and Co. International PLC | SEK | 12,904,368 | USD | 1,245,791 | 65,755 | ||||||||||||||||
09/29/2023 | Morgan Stanley and Co. International PLC | USD | 32,966 | SEK | 360,895 | 36 | ||||||||||||||||
10/31/2023 | Morgan Stanley and Co. International PLC | EUR | 300,000 | USD | 326,797 | 617 | ||||||||||||||||
10/31/2023 | Morgan Stanley and Co. International PLC | GBP | 4,260,093 | USD | 5,416,965 | 19,417 | ||||||||||||||||
09/29/2023 | Royal Bank of Canada | EUR | 5,250,000 | USD | 5,781,153 | 81,754 | ||||||||||||||||
09/29/2023 | Royal Bank of Canada | GBP | 5,200,048 | USD | 6,677,636 | 89,474 |
12 | Invesco Dynamic Credit Opportunity Fund |
Open Forward Foreign Currency Contracts–(continued) | ||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||
Settlement | Contract to | Appreciation | ||||||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||||
09/29/2023 | Royal Bank of Canada | USD | 1,087,036 | SEK | 11,891,924 | $ | 417 | |||||||||||||||
10/31/2023 | Royal Bank of Canada | EUR | 26,880,069 | USD | 29,291,212 | 65,407 | ||||||||||||||||
10/31/2023 | Royal Bank of Canada | GBP | 4,196,509 | USD | 5,338,581 | 21,593 | ||||||||||||||||
09/29/2023 | State Street Bank & Trust Co. | EUR | 24,678,768 | USD | 27,365,422 | 574,156 | ||||||||||||||||
10/31/2023 | State Street Bank & Trust Co. | EUR | 267,571 | USD | 291,259 | 338 | ||||||||||||||||
10/31/2023 | State Street Bank & Trust Co. | GBP | 31,951 | USD | 40,598 | 116 | ||||||||||||||||
09/29/2023 | UBS AG | GBP | 150,344 | USD | 191,893 | 1,416 | ||||||||||||||||
Subtotal–Appreciation | 2,696,527 | |||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||
09/29/2023 | Barclays Bank PLC | USD | 29,253,284 | EUR | 26,880,069 | (72,286 | ) | |||||||||||||||
09/29/2023 | BNP Paribas S.A. | USD | 5,416,755 | GBP | 4,264,931 | (13,332 | ) | |||||||||||||||
09/29/2023 | Canadian Imperial Bank of Commerce | USD | 2,572,476 | GBP | 2,000,000 | (38,591 | ) | |||||||||||||||
09/29/2023 | Citibank N.A. | USD | 28,830,198 | EUR | 26,478,874 | (84,738 | ) | |||||||||||||||
09/29/2023 | J.P. Morgan Chase Bank, N.A. | USD | 1,637,418 | EUR | 1,500,000 | (9,019 | ) | |||||||||||||||
09/29/2023 | J.P. Morgan Chase Bank, N.A. | USD | 1,274,064 | GBP | 1,000,000 | (7,121 | ) | |||||||||||||||
10/31/2023 | J.P. Morgan Chase Bank, N.A. | NOK | 1,711 | USD | 161 | (0 | ) | |||||||||||||||
09/29/2023 | Morgan Stanley and Co. International PLC | USD | 3,292,354 | EUR | 3,000,000 | (35,555 | ) | |||||||||||||||
09/29/2023 | Morgan Stanley and Co. International PLC | USD | 5,538,065 | GBP | 4,355,248 | (20,215 | ) | |||||||||||||||
09/29/2023 | Morgan Stanley and Co. International PLC | USD | 154,883 | SEK | 1,612,027 | (7,472 | ) | |||||||||||||||
09/29/2023 | Royal Bank of Canada | GBP | 148,580 | USD | 187,655 | (587 | ) | |||||||||||||||
09/29/2023 | Royal Bank of Canada | USD | 29,245,516 | EUR | 26,880,070 | (64,517 | ) | |||||||||||||||
09/29/2023 | Royal Bank of Canada | USD | 5,344,510 | GBP | 4,201,276 | (21,735 | ) | |||||||||||||||
09/29/2023 | Royal Bank of Canada | USD | 284,815 | SEK | 3,039,522 | (6,867 | ) | |||||||||||||||
10/31/2023 | Royal Bank of Canada | SEK | 11,915,544 | USD | 1,090,722 | (446 | ) | |||||||||||||||
09/29/2023 | Toronto-Dominion Bank (The) | USD | 822,832 | EUR | 745,863 | (13,123 | ) | |||||||||||||||
09/29/2023 | UBS AG | USD | 2,176,096 | EUR | 2,000,000 | (4,896 | ) | |||||||||||||||
Subtotal–Depreciation | (400,500 | ) | ||||||||||||||||||||
Total Forward Foreign Currency Contracts | $ | 2,296,027 |
13 | Invesco Dynamic Credit Opportunity Fund |
BB | 0.17 | % | ||
BB- | 1.61 | |||
B+ | 2.97 | |||
B | 5.40 | |||
B- | 9.35 | |||
CCC+ | 1.73 | |||
CCC | 4.95 | |||
CCC- | 0.23 | |||
CC | 0.73 | |||
D | 0.75 | |||
Non-Rated | 57.30 | |||
Equity | 14.81 |
† | 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. |
14 | Invesco Dynamic Credit Opportunity Fund |
Assets: | ||||
Investments in unaffiliated securities, at value (Cost $529,536,228) | $ | 467,899,892 | ||
Other investments: | ||||
Unrealized appreciation on forward foreign currency contracts outstanding | 2,696,527 | |||
Cash | 2,902,479 | |||
Foreign currencies, at value (Cost $4,408,788) | 4,409,613 | |||
Receivable for: | ||||
Investments sold | 21,624,351 | |||
Interest and fees | 10,693,910 | |||
Investments matured, at value (Cost $10,623,457) | 2,943,550 | |||
Investment for trustee deferred compensation and retirement plans | 23,535 | |||
Other assets | 25,747 | |||
Total assets | 513,219,604 | |||
Liabilities: | ||||
Other investments: | ||||
Unrealized depreciation on forward foreign currency contracts outstanding | 400,500 | |||
Payable for: | ||||
Borrowings | 70,000,000 | |||
Investments purchased | 28,746,747 | |||
Dividends | 6,838,908 | |||
Accrued fees to affiliates | 130,776 | |||
Accrued interest expense | 642,413 | |||
Accrued trustees’ and officers’ fees and benefits | 1,301 | |||
Accrued other operating expenses | 216,456 | |||
Trustee deferred compensation and retirement plans | 23,535 | |||
Unfunded loan commitments | 20,295,047 | |||
Total liabilities | 127,295,683 | |||
Net assets applicable to shares outstanding | $ | 385,923,921 |
Net assets consist of: | ||||
Shares of beneficial interest | $ | 556,395,068 | ||
Distributable earnings (loss) | (170,471,147 | ) | ||
$ | 385,923,921 | |||
Net Assets: | ||||
Class A | $ | 118,527 | ||
Class AX | $ | 385,786,480 | ||
Class Y | $ | 9,969 | ||
Class R6 | $ | 8,945 | ||
Shares outstanding, no par value, with an unlimited number of shares authorized: | ||||
Class A | 10,649 | |||
Class AX | 34,661,409 | |||
Class Y | 896 | |||
Class R6 | 804 | |||
Class A: | ||||
Net asset value per share | $ | 11.13 | ||
Maximum offering price per share (Net asset value of $11.13 ÷ 96.75%) | $ | 11.50 | ||
Class AX: | ||||
Net asset value and offering price per share | $ | 11.13 | ||
Class Y: | ||||
Net asset value and offering price per share | $ | 11.13 | ||
Class R6: | ||||
Net asset value and offering price per share | $ | 11.13 |
15 | Invesco Dynamic Credit Opportunity Fund |
Investment income: | ||||
Interest | $ | 28,533,465 | ||
Dividends | 4,234,433 | |||
Dividends from affiliated money market funds | 93,986 | |||
Other income | 10,239 | |||
Total investment income | 32,872,123 | |||
Expenses: | ||||
Advisory fees | 3,089,967 | |||
Administrative services fees | 29,321 | |||
Custodian fees | 38,760 | |||
Distribution fees: | ||||
Class A | 139 | |||
Interest, facilities and maintenance fees | 3,827,553 | |||
Transfer agent fees | 244,978 | |||
Transfer agent fees – R6 | 1 | |||
Trustees’ and officers’ fees and benefits | 10,306 | |||
Registration and filing fees | 25,139 | |||
Reports to shareholders | 344,997 | |||
Professional services fees | 602,770 | |||
Other | 34,816 | |||
Total expenses | 8,248,747 | |||
Less: Fees waived | (3,646 | ) | ||
Net expenses | 8,245,101 | |||
Net investment income | 24,627,022 | |||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | (22,587,068 | ) | ||
Foreign currencies | (207,558 | ) | ||
Forward foreign currency contracts | (1,050,547 | ) | ||
(23,845,173 | ) | |||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | 15,759,846 | |||
Foreign currencies | 396,550 | |||
Forward foreign currency contracts | (988,897 | ) | ||
15,167,499 | ||||
Net realized and unrealized gain (loss) | (8,677,674 | ) | ||
Net increase in net assets resulting from operations | $ | 15,949,348 |
16 | Invesco Dynamic Credit Opportunity Fund |
August 31, | February 28, | |||||||
2023 | 2023 | |||||||
Operations: | ||||||||
Net investment income | $ | 24,627,022 | $ | 37,016,130 | ||||
Net realized gain (loss) | (23,845,173 | ) | (18,916,042 | ) | ||||
Change in net unrealized appreciation (depreciation) | 15,167,499 | (25,401,571 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 15,949,348 | (7,301,483 | ) | |||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (5,525 | ) | (5,250 | ) | ||||
Class AX | (20,060,026 | ) | (40,070,451 | ) | ||||
Class Y | (502 | ) | (853 | ) | ||||
Class R6 | (457 | ) | (779 | ) | ||||
Total distributions from distributable earnings | (20,066,510 | ) | (40,077,333 | ) | ||||
Share transactions–net: | ||||||||
Class A | 28,786 | 80,910 | ||||||
Class AX | (35,930,295 | ) | (148,966,322 | ) | ||||
Class Y | 49 | 78 | ||||||
Net increase (decrease) in net assets resulting from share transactions | (35,901,460 | ) | (148,885,334 | ) | ||||
Net increase (decrease) in net assets | (40,018,622 | ) | (196,264,150 | ) | ||||
Net assets: | ||||||||
Beginning of period | 425,942,543 | 622,206,693 | ||||||
End of period | $ | 385,923,921 | $ | 425,942,543 | ||||
17 | Invesco Dynamic Credit Opportunity Fund |
Cash provided by operating activities: | ||||
Net increase in net assets resulting from operations | $ | 15,949,348 | ||
Adjustments to reconcile the change in net assets from operations to net cash provided by operating activities: | ||||
Purchases of investments | (43,169,308 | ) | ||
Proceeds from sales of investments | 115,689,774 | |||
Purchases of short-term investments, net | (5,189,860 | ) | ||
Amortization of premium on investment securities | (208,872 | ) | ||
Accretion of discount on investment securities | (2,189,454 | ) | ||
Net realized loss from investment securities | 22,587,068 | |||
Net change in unrealized appreciation on investment securities | (15,759,846 | ) | ||
Net change in unrealized depreciation of forward foreign currency contracts | 988,897 | |||
Change in operating assets and liabilities: | ||||
Decrease in receivables and other assets | 1,389,458 | |||
Decrease in accrued expenses and other payables | (576,301 | ) | ||
Net cash provided by operating activities | 89,510,904 | |||
Cash provided by (used in) financing activities: | ||||
Dividends paid to shareholders from distributable earnings | (15,165,890 | ) | ||
Proceeds from shares of beneficial interest sold | 205,264 | |||
Proceeds from borrowings | 15,898,443 | |||
Repayment of borrowings | (81,898,443 | ) | ||
Disbursements from shares of beneficial interest reacquired | (40,990,621 | ) | ||
Net cash provided by (used in) financing activities | (121,951,247 | ) | ||
Net decrease in cash and cash equivalents | (32,440,343 | ) | ||
Cash and cash equivalents at beginning of period | 39,752,435 | |||
Cash and cash equivalents at end of period | $ | 7,312,092 | ||
Non-cash financing activities: | ||||
Value of shares of beneficial interest issued in reinvestment of dividends paid to shareholders | $ | 4,883,897 | ||
Supplemental disclosure of cash flow information: | ||||
Cash paid during the period for taxes | $ | 542 | ||
Cash paid during the period for interest, facilities and maintenance fees | $ | 4,409,063 | ||
18 | Invesco Dynamic Credit Opportunity Fund |
Six Month Ended | Year Ended | Period Ended | |||||||||||||
August 31, | February 28, | February 28, | |||||||||||||
Class A | 2023 | 2023 | 2022(a) | ||||||||||||
Net asset value, beginning of period | $ | 11.24 | $ | 12.27 | $ | 12.46 | |||||||||
Net investment income(b) | 0.67 | 0.79 | 0.85 | ||||||||||||
Net gains (losses) on securities (both realized and unrealized) | (0.25 | ) | (0.92 | ) | (0.90 | ) | |||||||||
Total from investment operations | 0.42 | (0.13 | ) | (0.05 | ) | ||||||||||
Less: Dividends from net investment income | (0.53 | ) | (0.90 | ) | (0.14 | ) | |||||||||
Net asset value, end of period | $ | 11.13 | $ | 11.24 | $ | 12.27 | |||||||||
Total return at net asset value(c) | 3.83 | % | (1.03 | )% | (0.38 | )% | |||||||||
Net assets, end of period (000’s omitted) | $ | 119 | $ | 91 | $ | 12 | |||||||||
Portfolio turnover rate(d) | 13 | % | 22 | % | 96 | % | |||||||||
Ratios/supplemental data based on average net assets: | |||||||||||||||
Ratio of expenses: | |||||||||||||||
With fee waivers and/or expense reimbursements(e) | 4.40 | %(f) | 4.27 | % | 2.84 | %(f) | |||||||||
With fee waivers and/or expense reimbursements excluding interest, facilities and maintenance fees | 2.47 | %(f) | 2.37 | % | 2.32 | %(f) | |||||||||
Without fee waivers and/or expense reimbursements | 4.40 | %(f) | 4.27 | % | 2.84 | %(f) | |||||||||
Ratio of net investment income | 12.16 | %(f) | 7.06 | % | 4.91 | %(f) | |||||||||
Senior indebtedness: | |||||||||||||||
Total borrowings (000’s omitted) | $ | 70,000 | $ | 136,000 | $ | 217,000 | |||||||||
Asset coverage per $1,000 unit of senior indebtedness(g) | $ | 6,513 | $ | 4,132 | $ | 3,867 |
(a) | Commencement date of November 1, 2021. |
(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. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. Calculation includes the proceeds from principal repayments and sales of variable rate senior loan interests. |
(e) | Includes fee waivers which were less than 0.005% per share. |
(f) | Annualized. |
(g) | Calculated by subtracting the Fund’s total liabilities (not including the Borrowings) from the Fund’s total assets and dividing by the total number of senior indebtedness units, where one unit equals $1,000 of senior indebtedness. |
19 | Invesco Dynamic Credit Opportunity Fund |
Six months ended August 31, | Years Ended February 28, | Year Ended February 29, | Year Ended February 28, | |||||||||||||||||||||||||||
Class AX(a) | 2023 | 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.23 | $ | 12.27 | $ | 12.02 | $ | 12.35 | $ | 12.66 | $ | 13.15 | ||||||||||||||||||
Net investment income(b) | 0.69 | 0.88 | 0.65 | 0.62 | 0.72 | 0.61 | ||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | (0.25 | ) | (0.99 | ) | 0.38 | (0.05 | ) | (0.21 | ) | (0.19 | ) | |||||||||||||||||||
Total from investment operations | 0.44 | (0.11 | ) | 1.03 | 0.57 | 0.51 | 0.42 | |||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||
Dividends from net investment income | (0.54 | ) | (0.93 | ) | (0.78 | ) | (0.74 | ) | (0.82 | ) | (0.91 | ) | ||||||||||||||||||
Return of capital | – | – | – | (0.16 | ) | – | – | |||||||||||||||||||||||
Total distributions | (0.54 | ) | (0.93 | ) | (0.78 | ) | (0.90 | ) | (0.82 | ) | (0.91 | ) | ||||||||||||||||||
Net asset value, end of period | $ | 11.13 | $ | 11.23 | $ | 12.27 | $ | 12.02 | $ | 12.35 | $ | 12.66 | ||||||||||||||||||
Market value per common share, end of period | N/A | N/A | N/A | $ | 11.00 | $ | 10.83 | $ | 11.06 | |||||||||||||||||||||
Total return at net asset value(c) | 4.22 | % | (0.86 | )% | 8.75 | % | 7.11 | % | 4.99 | % | 4.44 | % | ||||||||||||||||||
Total return at market value(d) | N/A | N/A | N/A | 11.77 | % | 5.39 | % | 3.52 | % | |||||||||||||||||||||
Net assets, end of period (000’s omitted) | $ | 385,786 | $ | 425,833 | $ | 622,174 | $ | 756,881 | $ | 777,644 | $ | 937,973 | ||||||||||||||||||
Portfolio turnover rate(e) | 13 | % | 22 | % | 96 | % | 83 | % | 83 | % | 69 | % | ||||||||||||||||||
Ratios/supplemental data based on average net assets: | ||||||||||||||||||||||||||||||
Ratio of expenses: | ||||||||||||||||||||||||||||||
With fee waivers and/or expense reimbursements(f) | 4.15 | %(g) | 3.68 | % | 2.52 | % | 2.68 | % | 3.59 | % | 3.50 | % | ||||||||||||||||||
With fee waivers and/or expense reimbursements excluding interest, facilities and maintenance fees | 2.22 | %(g) | 2.12 | % | 1.96 | % | 1.92 | % | 1.99 | % | 1.97 | % | ||||||||||||||||||
Without fee waivers and/or expense reimbursements | 4.15 | %(g) | 3.68 | % | 2.52 | % | 2.68 | % | 3.59 | % | 3.50 | % | ||||||||||||||||||
Ratio of net investment income | 12.41 | %(g) | 7.65 | % | 5.23 | % | 5.66 | % | 5.76 | % | 4.72 | % | ||||||||||||||||||
Senior indebtedness: | ||||||||||||||||||||||||||||||
Total borrowings (000’s omitted) | $ | 70,000 | $ | 136,000 | $ | 217,000 | $ | 191,000 | $ | 300,000 | $ | 327,000 | ||||||||||||||||||
Asset coverage per $1,000 unit of senior indebtedness(h) | $ | 6,513 | $ | 4,132 | $ | 3,867 | $ | 5,486 | $ | 4,010 | $ | 4,249 | ||||||||||||||||||
Total amount of preferred shares outstanding (000’s omitted) | N/A | N/A | N/A | $ | 100,000 | $ | 125,000 | $ | 125,000 | |||||||||||||||||||||
Asset coverage per preferred share(i) | N/A | N/A | N/A | $ | 856,881 | $ | 722,116 | $ | 850,378 | |||||||||||||||||||||
Liquidating preference per preferred share | N/A | N/A | N/A | $ | 100,000 | $ | 100,000 | $ | 100,000 |
(a) | Prior to November 1, 2021, the Fund operated as a Closed-End non-interval fund. On such date, holders of common shares of Closed-End Fund received Class AX shares of the Fund equal to the number of Closed-End Fund common shares they owned prior to Reorganization. |
(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. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(d) | Total return assumes an investment at the common share market price at the beginning of the period indicated, reinvestment of all distributions for the period in accordance with the Fund’s dividend reinvestment plan, and sale of all shares at the closing common share market price at the end of the period indicated. Not annualized for periods less than one year, if applicable. |
(e) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. Calculation includes the proceeds from principal repayments and sales of variable rate senior loan interests. |
(f) | Includes fee waivers which were less than 0.005% per share. |
(g) | Annualized. |
(h) | Calculated by subtracting the Fund’s total liabilities (not including the Borrowings) from the Fund’s total assets and dividing by the total number of senior indebtedness units, where one unit equals $1,000 of senior indebtedness. |
(i) | Calculated by subtracting the Fund’s total liabilities (not including the preferred shares, at liquidation value) from the Fund’s total assets and dividing by the total number of preferred shares outstanding. |
20 | Invesco Dynamic Credit Opportunity Fund |
Six Month Ended | Year Ended | Period Ended | |||||||||||||
August 31, | February 28, | February 28, | |||||||||||||
Class Y | 2023 | 2023 | 2022(a) | ||||||||||||
Net asset value, beginning of period | $ | 11.24 | $ | 12.27 | $ | 12.46 | |||||||||
Net investment income(b) | 0.69 | 0.87 | 0.86 | ||||||||||||
Net gains (losses) on securities (both realized and unrealized) | (0.26 | ) | (0.97 | ) | (0.90 | ) | |||||||||
Total from investment operations | 0.43 | (0.10 | ) | (0.04 | ) | ||||||||||
Less: Dividends from net investment income | (0.54 | ) | (0.93 | ) | (0.15 | ) | |||||||||
Net asset value, end of period | $ | 11.13 | $ | 11.24 | $ | 12.27 | |||||||||
Total return at net asset value(c) | 3.96 | % | (0.75 | )% | (0.34 | )% | |||||||||
Net assets, end of period (000’s omitted) | $ | 10 | $ | 10 | $ | 11 | |||||||||
Portfolio turnover rate(d) | 13 | % | 22 | % | 96 | % | |||||||||
Ratios/supplemental data based on average net assets: | |||||||||||||||
Ratio of expenses: | |||||||||||||||
With fee waivers and/or expense reimbursements(e) | 4.15 | %(f) | 3.68 | % | 2.59 | %(f) | |||||||||
With fee waivers and/or expense reimbursements excluding interest, facilities and maintenance fees | 2.22 | %(f) | 2.12 | % | 2.07 | %(f) | |||||||||
Without fee waivers and/or expense reimbursements | 4.15 | %(f) | 3.68 | % | 2.59 | %(f) | |||||||||
Ratio of net investment income | 12.41 | %(f) | 7.65 | % | 5.16 | %(f) | |||||||||
Senior indebtedness: | |||||||||||||||
Total borrowings (000’s omitted) | $ | 70,000 | $ | 136,000 | $ | 217,000 | |||||||||
Asset coverage per $1,000 unit of senior indebtedness(g) | $ | 6,513 | $ | 4,132 | $ | 3,867 |
(a) | Commencement date of November 1, 2021. |
(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. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. Calculation includes the proceeds from principal repayments and sales of variable rate senior loan interests. |
(e) | Includes fee waivers which were less than 0.005% per share. |
(f) | Annualized. |
(g) | Calculated by subtracting the Fund’s total liabilities (not including the Borrowings) from the Fund’s total assets and dividing by the total number of senior indebtedness units, where one unit equals $1,000 of senior indebtedness. |
21 | Invesco Dynamic Credit Opportunity Fund |
Six Month Ended | Year Ended | Period Ended | |||||||||||||
August 31, | February 28, | February 28, | |||||||||||||
Class R6 | 2023 | 2023 | 2022(a) | ||||||||||||
Net asset value, beginning of period | $ | 11.24 | $ | 12.27 | $ | 12.46 | |||||||||
Net investment income(b) | 0.69 | 0.89 | 0.86 | ||||||||||||
Net gains (losses) on securities (both realized and unrealized) | (0.25 | ) | (0.98 | ) | (0.90 | ) | |||||||||
Total from investment operations | 0.44 | (0.09 | ) | (0.04 | ) | ||||||||||
Less: Dividends from net investment income | (0.55 | ) | (0.94 | ) | (0.15 | ) | |||||||||
Net asset value, end of period | $ | 11.13 | $ | 11.24 | $ | 12.27 | |||||||||
Total return at net asset value(c) | 4.02 | % | (0.70 | )% | (0.33 | )% | |||||||||
Net assets, end of period (000’s omitted) | $ | 9 | $ | 9 | $ | 10 | |||||||||
Portfolio turnover rate(d) | 13 | % | 22 | % | 96 | % | |||||||||
Ratios/supplemental data based on average net assets: | |||||||||||||||
Ratio of expenses: | |||||||||||||||
With fee waivers and/or expense reimbursements(e) | 4.05 | %(f) | 3.58 | % | 2.55 | %(f) | |||||||||
With fee waivers and/or expense reimbursements excluding interest, facilities and maintenance fees | 2.12 | %(f) | 2.02 | % | 2.03 | %(f) | |||||||||
Without fee waivers and/or expense reimbursements | 4.05 | %(f) | 3.58 | % | 2.55 | %(f) | |||||||||
Ratio of net investment income | 12.51 | %(f) | 7.75 | % | 5.20 | %(f) | |||||||||
Senior indebtedness: | |||||||||||||||
Total borrowings (000’s omitted) | $ | 70,000 | $ | 136,000 | $ | 217,000 | |||||||||
Asset coverage per $1,000 unit of senior indebtedness(g) | $ | 6,513 | $ | 4,132 | $ | 3,867 |
(a) | Commencement date of November 1, 2021. |
(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. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. Calculation includes the proceeds from principal repayments and sales of variable rate senior loan interests. |
(e) | Includes fee waivers which were less than 0.005% per share. |
(f) | Annualized. |
(g) | Calculated by subtracting the Fund’s total liabilities (not including the Borrowings) from the Fund’s total assets and dividing by the total number of senior indebtedness units, where one unit equals $1,000 of senior indebtedness. |
22 | Invesco Dynamic Credit Opportunity Fund |
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. |
23 | Invesco Dynamic Credit Opportunity Fund |
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. |
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 quarterly. 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 consolidated financial statements. |
F. | Interest, Facilities and Maintenance Fees - Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees, rating and bank agent fees, administrative expenses and other expenses associated with establishing and maintaining the line of credit and Variable Rate Demand Preferred Shares (“VRDP Shares”). In addition, interest and administrative expenses related to establishing and maintaining floating rate note obligations, if any, are included. |
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 consolidated financial statements are released to print. |
H. | Indemnifications - Under the Fund’s organizational documents, each Trustee, officer, employee or other agent of the Fund, and under the LLC’s organizational documents, each member of the LLC and certain affiliated persons, is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or LLC. 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. | Cash and Cash Equivalents - For the purposes of the Consolidated Statement of Cash Flows, the Fund defines Cash and Cash Equivalents as cash (including foreign currency), money market funds and other investments held in lieu of cash and excludes investments made with cash collateral received. |
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 |
24 | Invesco Dynamic Credit Opportunity Fund |
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. |
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. |
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. |
P. | Foreign Risk - The Fund may invest in senior loans to borrowers that are organized or located in countries other than the United States. Investment in non-U.S. issuers involves special risks, including that non-U.S. issuers may be subject to less rigorous accounting and reporting requirements than U.S. issuers, less rigorous regulatory requirements, different legal systems and laws relating to creditors’ rights, the potential inability to enforce legal judgments and the potential for political, social and economic adversity. Investments by the Fund in non-U.S. dollar denominated investments will be subject to currency risk. The Fund also may hold non-U.S. dollar denominated senior loans or other securities received as part of a reorganization or restructuring. Trading in many foreign securities may be less liquid and more volatile than U.S. securities due to the size of the market or other factors. |
Q. | Leverage Risk - The Fund may utilize leverage to seek to enhance the yield of the Fund by borrowing or issuing preferred shares. There are risks associated with borrowing or issuing preferred shares 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 made with such leverage, the higher volatility of the net asset value of the common shares, and that fluctuations in the interest rates on the borrowing or dividend rates on preferred shares may affect the yield and distributions to the common shareholders. There can be no assurance that the Fund’s leverage strategy will be successful. |
R. | 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 |
25 | Invesco Dynamic Credit Opportunity Fund |
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. |
26 | Invesco Dynamic Credit Opportunity Fund |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Variable Rate Senior Loan Interests | $ | – | $ | 111,784,870 | $ | 236,889,914 | $ | 348,674,784 | ||||||||
Common Stocks & Other Equity Interests | 18,154 | 5,419,445 | 57,449,804 | 62,887,403 | ||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes | – | 31,781,040 | 87,727 | 31,868,767 | ||||||||||||
Asset-Backed Securities | – | 10,297,037 | – | 10,297,037 | ||||||||||||
Preferred Stocks | – | 5,205,894 | 900,650 | 6,106,544 | ||||||||||||
U.S. Dollar Denominated Bonds & Notes | – | 3,427,655 | 1,406,553 | 4,834,208 | ||||||||||||
Municipal Obligations | – | 3,231,149 | – | 3,231,149 | ||||||||||||
Total Investments in Securities | 18,154 | 171,147,090 | 296,734,648 | 467,899,892 | ||||||||||||
Other Investments - Assets* | ||||||||||||||||
Investments Matured | – | 1,040,976 | 1,902,574 | 2,943,550 | ||||||||||||
Forward Foreign Currency Contracts | – | 2,696,527 | – | 2,696,527 | ||||||||||||
– | 3,737,503 | 1,902,574 | 5,640,077 | |||||||||||||
Other Investments - Liabilities* | ||||||||||||||||
Forward Foreign Currency Contracts | – | (400,500 | ) | – | (400,500 | ) | ||||||||||
Total Other Investments | – | 3,337,003 | 1,902,574 | 5,239,577 | ||||||||||||
Total Investments | $ | 18,154 | $ | 174,484,093 | $ | 298,637,222 | $ | 473,139,469 | ||||||||
* | Forward foreign currency contracts are valued at unrealized appreciation (depreciation). Investments matured are shown at value. |
Change in | ||||||||||||||||||||||||||||||||||||
Accrued | Realized | Unrealized | Transfers | Transfers | ||||||||||||||||||||||||||||||||
Value | Purchases | Proceeds | Discounts/ | Gain | Appreciation | into | out of | Value | ||||||||||||||||||||||||||||
02/28/23 | at Cost | from Sales | Premiums | (Loss) | (Depreciation) | Level 3* | Level 3* | 08/31/23 | ||||||||||||||||||||||||||||
Variable Rate Senior Loan Interests | $ | 290,670,988 | $ | 8,830,636 | $ | (57,372,253 | ) | $665,907 | $ | 633,868 | $ | (4,147,345 | ) | $ | 7,210,182 | $ | (9,602,069 | ) | $ | 236,889,914 | ||||||||||||||||
Common Stocks & Other Equity Interests | 57,005,087 | 2,539,528 | – | – | (557,447 | ) | (1,801,318 | ) | 299,082 | (35,128 | ) | 57,449,804 | ||||||||||||||||||||||||
Investments Matured | 354,284 | 1,557,609 | (9,319 | ) | 6,624 | 18 | (6,642 | ) | – | – | 1,902,574 | |||||||||||||||||||||||||
U.S. Dollar Denominated Bonds & Notes | 757,674 | 177,530 | (276,599 | ) | – | – | 747,948 | – | – | 1,406,553 | ||||||||||||||||||||||||||
Preferred Stocks | 931,492 | 426,571 | (426,572 | ) | – | (645,230 | ) | 614,389 | – | – | 900,650 | |||||||||||||||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes | – | 90,778 | – | 1,562 | – | (4,613 | ) | – | – | 87,727 | ||||||||||||||||||||||||||
Total | $ | 349,719,525 | $ | 13,622,652 | $ | (58,084,743 | ) | $674,093 | $ | (568,791 | ) | $ | (4,597,581 | ) | $ | 7,509,264 | $ | (9,637,197 | ) | $ | 298,637,222 | |||||||||||||||
* | 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. |
27 | Invesco Dynamic Credit Opportunity Fund |
Range of | ||||||||||||||||
Fair Value | Valuation | Unobservable | Unobservable | Unobservable | ||||||||||||
at 08/31/23 | Technique | Inputs | Inputs | Input Used | ||||||||||||
QuarterNorth Energy Holding, Inc. | $ | 27,660,468 | Valuation Service | N/A | N/A | N/A | (a) | |||||||||
FDH Group Acquisition, Inc., Term Loan A | 21,901,901 | Valuation Service | N/A | N/A | N/A | (b) | ||||||||||
Keg Logistics LLC, Term Loan A | 20,188,475 | Valuation Service | N/A | N/A | N/A | (b) | ||||||||||
Lightning Finco Ltd. (LiveU), Term Loan B-1 | 17,548,264 | Valuation Service | N/A | N/A | N/A | (b) | ||||||||||
Muth Mirror Systems LLC, Term Loan | 17,118,883 | Valuation Service | N/A | N/A | N/A | (b) | ||||||||||
Teasdale Foods, Inc., Term Loan | 14,172,990 | Valuation Service | N/A | N/A | N/A | (b) | ||||||||||
USF S&H Holdco LLC | 12,452,349 | Valuation Service | N/A | N/A | N/A | (b) | ||||||||||
My Alarm Center LLC, Class A | 11,563,263 | Valuation Service | N/A | N/A | N/A | (a) | ||||||||||
USF S&H Holdco LLC, Term Loan B | 10,517,378 | Valuation Service | N/A | N/A | N/A | (b) | ||||||||||
NAS LLC (d.b.a. Nationwide Marketing Group), Term Loan | 8,718,831 | Valuation Service | N/A | N/A | N/A | (b) | ||||||||||
Transtar Industries, Inc., Term Loan A | 8,549,016 | Valuation Service | N/A | N/A | N/A | (b) | ||||||||||
MB2 Dental Solutions LLC, Term Loan B | 8,456,340 | Valuation Service | N/A | N/A | N/A | (b) | ||||||||||
MB2 Dental Solutions LLC, Delayed Draw Term Loan | 8,440,186 | Valuation Service | N/A | N/A | N/A | (b) | ||||||||||
CV Intermediate Holdco Corp. (Class Valuation), Term Loan B | 7,892,008 | Valuation Service | N/A | N/A | N/A | (b) | ||||||||||
CV Intermediate Holdco Corp. (Class Valuation), Delayed Draw Term Loan | 7,664,055 | Valuation Service | N/A | N/A | N/A | (b) | ||||||||||
Lamark Media Group LLC, Term Loan B | 6,911,034 | Valuation Service | N/A | N/A | N/A | (b) | ||||||||||
Vertellus, Term Loan B | 6,665,291 | Valuation Service | N/A | N/A | N/A | (b) | ||||||||||
(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. |
(b) | Securities classified as Level 3 whose unadjusted values were provided by a pricing service and for which such inputs are unobservable. The valuations are based on certain methods used to determine market yields in order to establish a discount rate of return given market conditions and prevailing lending standards. Future expected cash flows are discounted back to the present value using these discount rates in the discounted cash flow analysis. 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. |
Value | ||||
Derivative Assets | Currency Risk | |||
Unrealized appreciation on forward foreign currency contracts outstanding | $ | 2,696,527 | ||
Derivatives not subject to master netting agreements | – | |||
Total Derivative Assets subject to master netting agreements | $ | 2,696,527 | ||
Value | ||||
Derivative Liabilities | Currency Risk | |||
Unrealized depreciation on forward foreign currency contracts outstanding | $ | (400,500 | ) | |
Derivatives not subject to master netting agreements | – | |||
Total Derivative Liabilities subject to master netting agreements | $ | (400,500 | ) | |
28 | Invesco Dynamic Credit Opportunity Fund |
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 | ||||||||||||||||||
Barclays Bank PLC | $ | 73,444 | $ | (72,286 | ) | $ | 1,158 | $ | – | $ | – | $ | 1,158 | |||||||||||
BNP Paribas S.A. | 765,246 | (13,332 | ) | 751,914 | – | – | 751,914 | |||||||||||||||||
Canadian Imperial Bank of Commerce | – | (38,591 | ) | (38,591 | ) | – | – | (38,591 | ) | |||||||||||||||
Citibank N.A. | 85,640 | (84,738 | ) | 902 | – | – | 902 | |||||||||||||||||
Goldman Sachs & Co. International PLC | 15,952 | – | 15,952 | – | – | 15,952 | ||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | 69,704 | (16,140 | ) | 53,564 | – | – | 53,564 | |||||||||||||||||
Morgan Stanley and Co. International PLC | 851,870 | (63,242 | ) | 788,628 | – | – | 788,628 | |||||||||||||||||
Royal Bank of Canada | 258,645 | (94,152 | ) | 164,493 | – | – | 164,493 | |||||||||||||||||
State Street Bank & Trust Co. | 574,610 | – | 574,610 | – | – | 574,610 | ||||||||||||||||||
Toronto-Dominion Bank (The) | – | (13,123 | ) | (13,123 | ) | – | – | (13,123 | ) | |||||||||||||||
UBS AG | 1,416 | (4,896 | ) | (3,480 | ) | – | – | (3,480 | ) | |||||||||||||||
Total | $ | 2,696,527 | $ | (400,500 | ) | $ | 2,296,027 | $ | – | $ | – | $ | 2,296,027 | |||||||||||
Location of Gain (Loss) on | ||||
Consolidated Statement of Operations | ||||
Currency | ||||
Risk | ||||
Realized Gain (Loss): | ||||
Forward foreign currency contracts | $(1,050,547) | |||
Change in Net Unrealized Appreciation (Depreciation): | ||||
Forward foreign currency contracts | (988,897) | |||
Total | $(2,039,444) | |||
Forward | ||||
Foreign Currency | ||||
Contracts | ||||
Average notional value | $323,483,657 | |||
29 | Invesco Dynamic Credit Opportunity Fund |
Borrower | Type | Unfunded Loan Commitment | Unrealized Appreciation (Depreciation) | |||||||
BrightPet (AMCP Pet Holdings, Inc.) | Revolver Loan | $ | 905,443 | $ | (31,776 | ) | ||||
CV Intermediate Holdco Corp. (Class Valuation) | Revolver Loan | 530,820 | (22,478 | ) | ||||||
Dun & Bradstreet Corp. (The) | Revolver Loan | 3,079,728 | 151,254 | |||||||
Kantar (Summer BC Bidco) | Revolver Loan | 1,103,669 | (27,463 | ) | ||||||
Keg Logistics LLC | Revolver Loan | 490,449 | (17,036 | ) | ||||||
Lamark Media Group LLC | Revolver Loan | 757,874 | (6,130 | ) | ||||||
McDermott International Ltd. | LOC | 4,083,292 | (1,041,239 | ) | ||||||
NAC Aviation 8 Ltd. | Revolver Loan | 1,642,458 | 0 | |||||||
NAS LLC (d.b.a. Nationwide Marketing Group) | Revolver Loan | 733,192 | (4,935 | ) | ||||||
Parques Reunidos (Piolin Bidco s.a.u) | Revolver Loan | 2,050,666 | (33,412 | ) | ||||||
Royal Caribbean Cruises Ltd. | Revolver Loan | 3,475,473 | (20,062 | ) | ||||||
Tank Holding Corp. | Revolver Loan | 89,493 | (1,084 | ) | ||||||
USF S&H Holdco LLC | Term Loan A | 948,410 | 79,919 | |||||||
Vertellus | Revolver Loan | 404,080 | (7,110 | ) | ||||||
$ | 20,295,047 | $ | (981,552 | ) | ||||||
Capital Loss Carryforward* | ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
Not subject to expiration | $ | 17,915,839 | $ | 69,010,778 | $ | 86,926,617 | ||||||
* | 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. |
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
Aggregate unrealized appreciation of investments | $ | 40,257,516 | ||
Aggregate unrealized (depreciation) of investments | (112,598,425 | ) | ||
Net unrealized appreciation (depreciation) of investments | $ | (72,340,909 | ) | |
30 | Invesco Dynamic Credit Opportunity Fund |
Principal | ||||||||
Selling Participant | Amount | Value | ||||||
Bank of America, N.A. | $4,725,507 | $4,624,889 | ||||||
Barclays Bank PLC | 4,083,292 | 3,042,053 | ||||||
Citibank, N.A. | 4,775,326 | 4,644,196 |
Amount Per Share | ||||
Share Class | Record Date | Payable September 29, 2023 | ||
Class A | Daily | $0.2941 | ||
Class AX | Daily | $0.3008 | ||
Class Y | Daily | $0.0304 | ||
Class R6 | Daily | $0.3009 |
Repurchase request deadlines | Percentage of outstanding shares the Fund offered to repurchase | Number of shares tendered (all classes) | Percentage of outstanding shares tendered (all classes) | |||
March 17, 2023 | 5.0% | 1,896,153 | 5.0% | |||
June 16, 2023 | 5.0 | 1,813,267 | 5.0 | |||
Summary of Share Activity | ||||||||||||||||||||
Six months ended August 31, 2023(a) | Year ended February 28, 2023 | |||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Sold: | ||||||||||||||||||||
Class A | 2,190 | $ | 24,329 | 6,804 | $ | 77,660 | ||||||||||||||
Class AX | 16,383 | 180,935 | 46,098 | 563,409 | ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||||||
Class A | 403 | 4,457 | 288 | 3,250 | ||||||||||||||||
Class AX | 441,754 | 4,879,391 | 913,559 | 10,524,005 | ||||||||||||||||
Class Y | 4 | 49 | 7 | 78 | ||||||||||||||||
Reacquired: | ||||||||||||||||||||
Class AX | (3,709,408 | ) | (40,990,621 | ) | (13,734,094 | ) | (160,053,736 | ) | ||||||||||||
Net increase (decrease) in share activity | (3,248,674 | ) | $ | (35,901,460 | ) | (12,767,338 | ) | $ | (148,885,334 | ) |
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 22% 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. |
31 | Invesco Dynamic Credit Opportunity Fund |
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||
Beginning Account Value (03/01/23) | Ending Account Value (08/31/23)1 | Expenses Paid During Period2 | Ending Account Value (08/31/23) | Expenses Paid During Period2 | Annualized Expense Ratio | |||||||
Class A | $1,000.00 | $1,040.90 | $22.57 | $1,003.02 | $22.15 | 4.40% | ||||||
Class AX | 1,000.00 | 1,042.20 | 21.30 | 1,004.27 | 20.91 | 4.15 | ||||||
Class Y | 1,000.00 | 1,043.10 | 21.31 | 1,004.27 | 20.91 | 4.15 | ||||||
Class R6 | 1,000.00 | 1,042.70 | 20.80 | 1,004.78 | 20.41 | 4.05 |
1 | The actual ending account value is based on the actual total return of the Fund for the period March 1, 2023 through August 31, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 184/366 to reflect the most recent fiscal half year. |
32 | Invesco Dynamic Credit Opportunity Fund |
A. | Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers |
B. | Fund Investment Performance |
33 | Invesco Dynamic Credit Opportunity Fund |
C. | Advisory and Sub-Advisory Fees and Fund Expenses |
D. | Economies of Scale and Breakpoints |
E. | Profitability and Financial Resources |
34 | Invesco Dynamic Credit Opportunity Fund |
35 | Invesco Dynamic Credit Opportunity Fund |
SEC file number(s): 811-23665 and 333-255932 | Invesco Distributors, Inc. | VK-CE-DCO-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 October 17, 2023, 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 October 17, 2023, 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. | 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: Invesco Dynamic Credit Opportunity Fund
By: | /s/ Glenn Brightman | |
Glenn Brightman | ||
Principal Executive Officer | ||
Date: | November 3, 2023 |
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: | November 3, 2023 |
By: | /s/ Adrien Deberghes | |
Adrien Deberghes | ||
Principal Financial Officer | ||
Date: | November 3, 2023 |